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HomeMy WebLinkAboutPalm Springs Art Museum (PSAM) Art Sculptures Insurance Premium ao CITY OF PALM DESERT DEPARTMENT OF HUMAN RESOURCES STAFF REPORT REQUEST: APPROVAL TO FUND THE ANNUAL FINE ARTS COLLECTION INSURANCE PREMIUM, IN THE AMOUNT OF $8,229.95, FOR ART SCULPTURES LOCATED WITHIN THE ERIC JOHNSON MEMORIAL GARDEN (FAYE SARKOWSKY SCULPTURE GARDEN), PER THE LEASE AGREEMENT WITH THE PALM SPRINGS ART MUSEUM. SUBMITTED BY: Stephen Y. Aryan, Risk Manager DATE: February 23, 2017 CONTENT: Artwork Valuation and Proposed Insurance Policy Recommendation By Minute Motion, approve $8,229.95 in funding for the annual fine arts collection insurance premium for art sculptures located in the Eric Johnson Memorial Garden (Faye Sarkowsy Sculpture Garden), per the lease agreement with the Palm Springs Art Museum. Strategic Plan The strategic plan envisions Palm Desert as the cultural core of the Coachella Valley. Insuring the artwork within the Faye Sarkowsky Sculpture Garden, valued at over $3 million, ensures that these unique and culturally significant pieces can be repaired or replaced should there be a loss. Background The lease agreement between the Palm Springs Art Museum and City of Palm Desert obligates the City to obtain insurance for the 12 sculptures currently installed in the non- exclusive use area (Eric Johnson Memorial Garden and/or Multi-Sensory Garden) at the Palm Springs Art Museum-Palm Desert. As many of these sculptures are on temporary donation with the Museum, it is recommended that the City have the artwork insured via their fine art broker, which the Museum recently changed to Willis of New York, Inc. The California Joint Powers Insurance Authority has previously raised no objections on this arrangement. There is no deductible for covered losses, with the exception for those as a result of an earthquake. Any earthquake related loss is subject to a $25,000 deductible. Staff Report: Fine Arts Collection Insurance Premium February 23, 2017 Page 2 of 2 There are some policy exclusions including, but not limited to, electromagnetic weapons radioactive contamination, biological weapons, and civil war. Staff recommends approval of the aforementioned insurance policy and annual premium. Fiscal Analysis There are 12 sculptures currently installed in the Eric Johnson Memorial Garden (Faye Sarkowsy Sculpture Garden), with a combined value of approximately $3.1 million and the cost to insure these pieces is $8,229.95. Please note that this insurance premium is approximately $3,000 less than last year's premium amount. The current policy expired February 9, 2017, but the new carrier agreed to extended coverage to this date, so that there is not a coverage gap. Please note that while there is a deductible for earthquake losses ($25,000), all remaining covered losses are not subject to a deductible. Funds are available in Account No. 1104800-4388500. Submitted By: / // StephOn Y. ryan, Risk Ma ger Reviewed By: Lori Came EWefor of Human Resources J net oore, Director of Finance/City Treasurer Approval: • Lauri Aylaian, City Manager M < �_ W N .'�i p to COW V 01• 01 A W N ; {f o a W 6)al in N A N I--+ N W H. N 3 0 �1 NJ H. N N I- ... �v a 0 H. N NJ y C. - - o .c-p0 , tD � q ,- 4 to O O l0 a A COCG C 1--. H. NJ H. µ a W )n V -• .ni Co rt C so a C. F... o � p 0 Cl. or - r y oro c N E n •r ° i. .-I �. tv , N C O S C O CO N R_ .^ f p 3 to Q a 3T. E. C 7 0a. d 3 ci 0 3 a d o n 3 3 Al 3 3 a 3 mn CT�Ap N a a 1-. w j. '�'-"_ Cco �. O 3 Sft 3N d CT 1--. c N N aa. 0 7. NJ 0 to 0 O W n 17 n F-' O (.0 N 1--+ `P P Li j to N 1- Cr'1 N W F• co 3 c 7- a E ,a. 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AAAA A -A A A A CD C 4,4 K VI- F M W CD I-` H+ F-' ifi [f1 44 NJ 44 4v 7 N C) 0 NJ to NJ A W a A -J V) A Cr a Vi o 0 0 o vI o o a a _v v) u0. , Cm '2 0 0 c) a a co a o a a Co a 0 mo g g o o Qao 0 0 C" a o o0 o a o a a o 0 0 a b a .1p cp,to - 0 0 0 0 0 0 0 0 0 0 0 C:. 0 -, $ PE _ -a.E r M @ tfl § § B 7 LS 7. ul \ \ • & m ) ® e 2 co % \ \ k 7 ) 9 § -0 $ cn I § \ \ k ® \ - c - ® \ 7 - i \ § 2 ) m. \ k to ( c 0 \ SY_ J C o o mZ 3 2 ID 3 NJ —1 @ 7 0 0 e S.ƒ ) § Ln / r § a) \ \ \ • a m m m D ; o w G £ O_ ƒ c E / / § 0 g C $ « k5 - / 0 \ / - / R k 0 § NYillis of Ness York, Inc I;.i„ I,II�. lulu�i:.r \��.,•i:i �u:IC :In- I,Y,Gu.:i \II)',-.\�, Dear Policyholder: We are pleased to advise that we have received confirmation from the insurance carrier that they have bound coverage per your instructions and based on the information you have provided, and subject to the terms and conditions of the policy attached herein. The enclosed policy sets out the benefits and coverage of the insurance we have placed for you in accordance with your instructions. We recommend that you read the policy very carefully. We have reviewed your policy and believe that it is consistent with your instructions: however if you consider the policy is not consistent with your instructions or if there are any errors or discrepancies, please advise us as soon as possible. Also enclosed you will find the invoice for this placement. Please note the premium payment terms as previously set forth in the quote proposal. Your first payment should be made within 30 days to the appropriate address found on page 2 of your invoice. If you should need to report a claim under this policy, please contact your Willis Fine Art Representative or any other member of the Willis Fine Art service team as soon as possible, within 90 days of the discovery. Please let us know if you have any questions or concerns. Sincerely, Your Willis Fine Art Representative Willis of New York, Inc W'I I I C . � ... City of Palm Desert City Hall 73510 Fred Waring Drive Palm Desert, CA 92260 INSURANCE POLICY Corporate Fine Arts Collection Insurance Company: Underwriters Placed in London Policy Number: 17433W17/14720W16 Effective: 9 February 2017 to 9 February 2018 Coverage placed with this insurer is issued pursuant to the surplus lines law and does not have the protection of state guaranty or insolvency funds nor has the policy wording been reviewed by the insurance department of the state. �:.. Willis of New York, Inc WIIIIS is ,, ,. ,:- . ,,, i_. _ .= • , . , " , „ ., NAMED INSURED: City of Palm Desert MAILING City Hall ADDRESS: 73510 Fred Waring Drive Palm Desert,CA 92260 POLICY PERIOD: 9 February 2017 to 9 February 2018 Both Days at 00:01 LST NAMED Faye Sarkowsky Sculpture Garden. 72-567 Highway 1 1 1, Palm Desert, CA 92260 LOCATION(S): INTEREST: Works of Art of all Kinds, as per schedule on file with Willis FAJS INSURANCE Underwriters placed in London, London, England via Willis Limited(London) COMPANY: POLICY NUMBER: 17433 W 17/14720W 16 POLICY FORM: Willis FAJS Private/Corporate Fine Art Collections, as attached POLICY TYPE: Private/Corporate Fine Art Collections Insurance PREMIUM: $ 7,975 $ 239 California Surplus Lines Taxes $ 15.95 California Stamping Fee $8,229.95 TOTAL LIMITS OF a. $3,190,000 Named Location(s) LIABILITY: b. $3,190,000 In any one loss or disaster, either in case of partial or total loss, or salvage charges or expenses or all combined e. $3,190,000 Earthquake, in the annual aggregate: DEDUCTIBLE(S): $ -0- Each and every covered loss increasing to; $ 25,000 loss or damage directly caused by earthquake, in respect of all covered property. Willis of New York, Inc CONDITIONS: This Risk is subject to the attached wording and clauses, including but not limited to: Institute Radioactive Contamination, Chemical, Biological, Bio-Chemical and Electromagnetic Weapons Exclusion Clause Radioactive Contamination Exclusion Clause(USA Endorsement) USA and Canada Endorsement for the Institute Radioactive Contamination, Chemical, Biological, Bio-chemical and Electromagnetic Weapons Exclusion Clause Small Additional or Return Premiums Clause Institute Cyber Attack Exclusion Clause War and Civil War Exclusion Clause Several Liability Notice Service of Suit Clause(USA) Sanction Limitation and Exclusion Clause Premium Payment Clause Willis addendum to Premium Payment Clause Lloyd's Privacy Policy Statement ADDITIONAL Palm Springs Art Museum in Palm Desert. 72-567 Highway 1 l 1, Palm Desert, CA INSURED AND 92260 LOSS PAYEE: AUTHORIZED SIGNATURES FOR AND ON BEHALF I OF UNDERWRITERS A•u PLACED IN LONDON: Eric S. Fischer, Senior Vice President Ri$4/10. Robert F. Salmon, ACII, Managing Director Willis of New York, Inc WIIIIS POLICY WORDING Private/Corporate Fine Arts Collection COVERAGE 1. Property Covered: This policy covers tine arts and collectible objects of every description including but not limited to paintings, etchings, drawings, photographs, ceramics, sculpture. pottery, porcelain, rare books, coins, manuscripts, rugs,tapestries, statuary, and other bona tide works of art, rarity, historic value, or artistic merit, and all associated property including but not limited to frames, glasses, shadow boxes. crates and other display equipment, all consisting of the following: (a) Property of the Insured, as per schedule on file with Willis Fine Art, Jewelry& Specie(Willis FAJS): (b) Property of others in the care, custody and control of the Insured as per schedule on file with Willis FAJS; (c) The Insured's interest in jointly owned property, but only to the extent of the Insured's interest at the time of loss or damage as per schedule on file with Willis FAJS; (d) Newly acquired property reported and added to the schedule on file with Willis FAJS within 90 days of acquisition. 2. Worldwide Coverage: Coverage is provided at any location worldwide and while in transit at any location worldwide. Prior notification and approval from the Company is required for any shipment by ocean going vessel. 3. Perils Insured Against: All risks of direct physical loss or damage from any external cause. except as excluded below. Loss, if any, is payable to the Insured or order. 4. Policy Term: This policy shall attach at 12:01 A.M. Standard Time at the place of the Insured's premise as shown on the Declaration Page or 12:01 A.M. Standard Time at the premises of the Insured. 5. Limits of Liability: This Company shall not be liable for more than the Limits of Liability stated on the Declaration Page or elsewhere in this policy. 6. Deductible: Each claim for loss or damage separately occurring shall be adjusted separately and from the amount of such adjusted claim the sum which is stated on the Declaration Page shall be deducted. 7. Premium: The premium for the policy term stated on the Declaration Page shall be due and payable as of the attachment date. Additions and deletions to schedule on file with Willis FAJS during the policy period are to be calculated and the premium shall he adjusted at pro rata of respective annual rates at policy anniversary audit. ;.. .. Willis of New York, Inc WI I I IS I I:a ..�:, �.�. I .. . ._- .>:i t.\:- �•,. EXCLUSIONS This policy does not insure against loss or damage caused by: (A) Wear and tear, gradual deterioration or inherent vice (B) Moths, vermin or rodents (C) Any repairing, restoration, or retouching process. (D)War Risks: (I) Hostile or warlike action in time of peace or war, including action hindering, combating or defending against an actual, impending or expected attack by any government or sovereign power or by any authority using military personnel or other agents; (2) Insurrection, rebellion, revolution, civil war, usurped power, or action taken by governmental authority in hindering, combating or defending against any of these; This exclusion does not apply to items while on an international air transit. (E) Government Action: Seizure or destruction under quarantine or customs regulations, confiscation by order of any government or public authority, or risks of contraband or illegal transportation or trade. (F) Nuclear Risks: (1) Nuclear reaction or radiation or radioactive contamination from any cause however, direct loss or damage by fire resulting from nuclear reaction or radiation or radioactive contamination is covered by this policy. (2)Any such weapon of war employing atomic fission or radioactive force whether in time of peace or war; (G)This policy does not cover shipments by mail unless by registered first class mail. VALUATION 1. Basis of Valuation: In event of loss or damage, property covered by this policy shall be valued and insured as follows: (a) On property of the Insured: as per value stated on the schedule on file with Willis FAJS. In the absence of a scheduled value, the Company shall not he liable beyond the current market value of the property at the time any loss or damage occurs. The loss or damage shall be estimated according to such current market value. Willis of New York, Inc W'I(I c (b) Property acquired or to be acquired by the Insured shall be valued at the purchase price. In no event, however, shall this policy cover such property beyond the Insured's interest as stipulated in the contract or other document executed between the Insured and the seller of said property. Ascertainment or estimate of loss shall be made by the Insured and this Company, or if they differ then the amount of loss shall be determined as provided under the Arbitration Clause of this policy. The above basis of valuation applies irrespective of values declared for airfreight or other purposes. 2. Partial Loss: In case of partial loss due to the perils insured against, the amount of loss shall be the cost and expense of restoration including any additional charges associated with such restoration. Depreciation if any, after restoration, is covered and shall be agreed upon between the Insured and the Company but in no event shall the Company he liable for more than the insured value of the property. GENERAL CONDITIONS 1. Notice of Loss: The Insured shall as soon as practicable report to this Company or its agent every loss or damage which may become a claim under this policy and shall also file a detailed sworn proof of loss with the Company or its agent within ninety(90)days from the time loss is discovered. Written notice to Willis Fine Arts Jewelry Specie shall constitute notice to this Company. 2. Settlement of Claims: All adjusted claims shall be paid or made good to the Insured within thirty (30)days after presentation and acceptance by the Company of satisfactory proof of interest and loss. 3. Legal Action Against Company: No legal action may be brought against the Company unless it is commenced within twelve(12) months following the discovery of the loss by the Insured. However, if such a limit is invalidated by the laws of the state where the Insured is domiciled,then any legal action shall be void unless it is commenced within the shortest limit of time permitted by the laws of such state. 4. Arbitration: If the Insured and the Company fail to agree as to the amount of loss, each shall, on the written demand of either made within sixty(60)days after receipt of proof of loss by the Company. select a competent and disinterested appraiser, and the appraisal shall be made at a reasonable time and place. The appraisers shall first select a competent and disinterested umpire, and failing for fifteen(15) days to agree upon such umpire, then on the request of the Insured or the Company, such umpire shall be selected by a judge of a court of record in the state in which such appraisal is pending. The appraisers shall then appraise the loss, stating separately the current market value at the time of loss(if applicable)and the amount of loss. and failing to agree shall submit their differences to the umpire. An award in writing of any two shall determine the amount of loss. The Insured and the Company shall each pay its chosen appraiser and shall bear equally the other expenses of the appraisal and umpire. The Company shall not be held to have waived any rights by any act relating to appraisal. 5. Examination under Oath: The Insured shall submit, and so far as is within its power, shall cause the Insured's employees to submit to examinations under oath by any persons named by the Company. relative to any and all matters in connection with a claim and produce for examination all books of account, bills, invoices, and Willis of New York, Inc WIIIIS other vouchers or certified copies, at such reasonable time and place as may be designated by the Company or its representatives. The Insured shall permit extracts and copies to be made of such material. 6. Protection of Property: In case of loss or damage. it is the duty of the Insured, its staff, representatives and agents to take measures as may be reasonable for the purpose of averting or minimizing such loss. In addition to any loss recoverable under this policy, the Company will reimburse the Insured for any charges properly and reasonably incurred in pursuance of these duties. Measures taken by the Insured or the Company with the object of saving, protecting or recovering the insured objects shall not be considered a waiver or acceptance of abandonment or otherwise prejudice the rights of either party. 7. Misrepresentation and Fraud: This policy shall be void if the Insured has concealed or misrepresented any material fact or circumstance concerning this insurance, or in case of any fraud, attempted fraud or false swearing by the Insured regarding any matter relating to this insurance, whether before or after loss. 8. Automatic Reinstatement: The limit of liability under this policy shall not be reduced by the payment of any claim. The proportionate part of the whole policy premium represented by any such payment. however, shall then be considered fully earned by the Company. 9. Pairs and Sets: In the event of the total loss of any articles which are part of a pair or set, the Insured has the following options: (A)The Company agrees to pay the full amount of the value of such pair or set as determined by the Valuation Clause contained in this policy. If such option is elected, the Insured must surrender the remaining article or articles of the pair or set to the Company; or (B)The measure of loss or damage to such property shall be a reasonable and fair proportion of the total value of the set, giving consideration to the importance of said property. 10. Loss Buy Back: The Insured shall have the right to repurchase from the Company property of the Insured that is recovered for the amount paid to the Insured for the loss, plus an amount which represents loss adjustments and recovery' expense. Damaged property of the Insured, for which a total loss has been paid, may be repurchased by the Insured at its fair market value at the time of the loss. The Company agrees to notify the Insured of its right to repurchase damaged or recovered property and the Insured shall have sixty(60)days from date of notice to exercise the repurchase right. 11. Packing: It is a condition of this insurance that the Insured will, to the best of their ability, provide for the insured property to he packed and unpacked by competent packers. Willis of New York, Inc W)I I I C 12. Excess Insurance: Permission is granted for the Insured to purchase excess insurance over the limit of liability provided by this policy. Moreover, the existence of such excess insurance shall not reduce any liability under this policy. 13. Collection from Others: No loss shall be paid under this policy if the Insured has collected the same from others. 14. Subrogation: In the event of any payment under this policy the Company shall be subrogated to all the Insured's rights of recovery against any person or organization and the Insured shall accomplish whatever is necessary to preserve such rights. 15. Changes: The terms of this policy can only be altered by an endorsement issued with approval of the Company and forming part of this policy. 15. Cancellation: This policy may be canceled by either the Insured or the Company by giving sixty (60)days notice in writing to the other, and upon such cancellation the Insured shall pay premium to date of cancellation. 17. Each Company: The interest of each Company providing coverage under this policy is individual and not joint, and whenever the right or privilege is retained by the Companies, such right or privilege may be exercised by each Company independently. 18. Required By Law: Any provisions required by law to be stated in policies issued by the Company shall he deemed to have been stated as part of this policy. 19. Other Insurance: If there is any other valid and collectible insurance covering the same property insured under this policy, which in the absence of this insurance would cover the loss or damage, then this Company shall not be liable for more than the excess over and above the other insurance. Willis of New York, Inc l 10/11/2003 Institute Radioactive Contamination, Chemical, Biological, Bio-Chemical and Electromagnetic Weapons Exclusion Clause This clause shall be paramount and shall override anything contained in this insurance inconsistent therewith 1. In no case shall this insurance cover loss damage liability or expense directly or indirectly caused by or contributed to by or arising from 1.1 ionising radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel 1.2 the radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear assembly or nuclear component thereof 1.3 any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter 1.4 the radioactive, toxic, explosive or other hazardous or contaminating properties of any radioactive matter. The exclusion in this sub-clause does not extend to radioactive isotopes, other than nuclear fuel, when such isotopes are being prepared, carried, stored, or used for commercial, agricultural, medical, scientific or other similar peaceful purposes 1.5 any chemical, biological, bio-chemical, or electromagnetic weapon. CL 370 RADIOACTIVE CONTAMINATION EXCLUSION CLAUSE (USA ENDORSEMENT) This insurance(reinsurance) is subject to the Institute Radioactive Contamination, Chemical. Biological, Bio- Chemical and Electromagnetic Weapons Clause CL.370 dated 10.11.03 provided that If fire is an insured peril and where the subject matter insured or, in the case of a reinsurance,the subject matter insured by the original insurance, is within the U.S.A. its islands, onshore territories or possessions „,. Ir Willis of New York, Inc Wi(l I C �... and a fire directly or indirectly from one or more of the causes detailed in sub-clauses 1.1 and 1.2 of the Institute Radioactive Contamination, Chemical. Biological, Bio-Chemical and Electromagnetic Weapons Clause CL.370 dated 10.I 1.03 any loss or damage arising directly from that fire shall, subject to the provisions of this insurance (reinsurance), be covered. EXCLUDING however any loss damage liability or expense caused by nuclear reaction, nuclear radiation or radioactive contamination arising directly or indirectly from that fire. 10/11/03 USA and Canada Endorsement for the Institute Radioactive Contamination, Chemical, Biological, Bio- chemical and Electromagnetic Weapons Exclusion Clause—10/11/03 This policy is subject to the Institute Radioactive Contamination,Chemical, Biological, Bio-Chemical and Electromagnetic Weapons Exclusion Clause 10/11/03 (RACCBE). The inclusion of RACCBE in this policy is material to Underwriters' willingness to provide coverage at the quoted terms, conditions and rates. It is the intent of the parties to give maximum effect to RACCBE as permitted by law. In the event that any portion of RACCBE may he found to be unenforceable in whole or in part under the law of any state, territory, district, commonwealth or possession of the U.S.A., or any province or territory of Canada. the remainder shall remain in full force and effect under the laws of that state,territory, district, commonwealth or possession, province or territory. Further, any such finding shall not alter the enforceability of RACCBE under the laws of any other state, territory, district, commonwealth or possession of the U.S.A., or any province or territory of Canada, to the fullest extent permitted by applicable law. USCAN B 29/01/04 Willis of New York, Inc WIIIIS �:.... Small Additional or Return Premiums Clause Notwithstanding. anything to the contrary contained herein and in consideration of the premium for which this Insurance is written, it is understood and agreed that whenever an additional or return premium of US$2.00 or less becomes due from or to the Assured on account of the adjustment of a deposit premium, or of any alteration in coverage or rate during the term or for any other reason,the collection of such premium from the Assured will be waived or the return of such premium to the Assured will not be made, as the case may be. NMA 1 168 10/I 1/03 Institute Cyber Attack Exclusion Clause 1.1 Subject only to clause 1.2 below, in no case shall this insurance cover loss damage liability or expense directly or indirectly caused by or contributed to by or arising from the use or operation, as a means for inflicting harm, of any computer, computer system, computer software programme. malicious code, computer virus or process or any other electronic system. 1.2 Where this clause is endorsed on policies covering risks of war, civil war, revolution, rebellion, insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power, or terrorism or any person acting from a political motive, Clause 1.1 shall not operate to exclude losses (which would otherwise be covered) arising from the use of any computer, computer system or computer software programme or any other electronic system in the launch and/or guidance system and/or firing mechanism of any weapon or missile. CL 380 War and Civil War Exclusion Clause Notwithstanding anything to the contrary contained herein this Policy does not cover loss or damage directly or indirectly occasioned by. happening through or in consequent of war, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, military or usurped power or confiscation or nationalization or requisition or destruction of or damage to property by or under the order of any government or public or local authority. NMA 464 Several Liability Notice The subscribing Insurers' obligations under contracts of insurance to which they subscribe are several and not joint and are limited solely to the extent of their individual subscriptions. The subscribing Insurers are not responsible for the subscription of any co-subscribing Insurer who for any reason does not satisfy all or part of its obligations. LSW 1001 (Insurance)08/94 Willis of New York, Inc WIIIIS SERVICE OF SUIT CLAUSE (U.S.A.) This Service of Suit Clause will not be read to conflict with or override the obligations of the parties to arbitrate their disputes as provided for in any Arbitration provision within this Policy. This Clause is intended as an aid to compelling arbitration or enforcing such arbitration or arbitral award. not as an alternative to such Arbitration provision for resolving disputes arising out of this contract of insurance(or reinsurance). It is agreed that in the event of the failure of the Underwriters hereon to pay any amount claimed to be due hereunder, the Underwriters hereon, at the request of the Insured (or Reinsured). will submit to the jurisdiction of a Court of competent jurisdiction within the United States. Nothing in this Clause constitutes or should be understood to constitute a waiver of Underwriters' rights to commence an action in any Court of competent jurisdiction in the United States, to remove an action to a United States District Court, or to seek a transfer of a case to another Court as permitted by the laws of the United States or of any State in the United States. It is further agreed that service of process in such suit may be made upon Mendes and Mount, 750 Seventh Avenue, New York,NY 10019-6829 and that in any suit instituted against any one of them upon this contract, Underwriters will abide by the final decision of such Court or of any Appellate Court in the event of an appeal. The above-named are authorized and directed to accept service of process on behalf of Underwriters in any such suit and/or upon the request of the Insured(or Reinsured)to give a written undertaking to the Insured(or Reinsured)that they will enter a general appearance upon Underwriters' behalf in the event such a suit shall be instituted. Further, pursuant to any statute of any state, territory or district of the United States which makes provision therefor, Underwriters hereon hereby designate the Superintendent,Commissioner or Director of Insurance or other officer specified for that purpose in the statute, or his successor or successors in office, as their true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the Insured(or Reinsured)or any beneficiary hereunder arising out of this contract of insurance (or reinsurance), and hereby designate the above-named as the person to whom the said officer is authorized to mail such process or a true copy thereof. I.MA5020 Sanction Limitation and Exclusion Clause No(re)insurer shall he deemed to provide cover and no(re)insurer shall be liable to pay any claim or provide any benefit hereunder to the extent that the provision of such cover, payment of such claim or provision of such benefit would expose that(re)insurer to any sanction, prohibition or restriction under United Nations resolutions or the trade or economic sanctions, laws or regulations of the European Union. United Kingdom or United States of America. JC2010/014 11 August 2010 Willis of New York, Inc WIIIIS PREMIUM PAYMENT CLAUSE The(Re)Insured undertakes that premium will be paid in full to Underwriters within 60 days of inception of this policy(or, in respect of instalment premiums, when due). If the premium due under this policy has not been so paid to Underwriters by the 60th day from the inception of this policy(and, in respect of instalment premiums, by the date they are due) Underwriters shall have the right to cancel this policy by notifying the(Re)Insured via the broker in writing. In the event of cancellation, premium is due to Underwriters on a pro rata basis for the period that Underwriters are on risk but the full policy premium shall be payable to Underwriters in the event of a loss or occurrence prior to the date of termination which gives rise to a valid claim under this policy. It is agreed that Underwriters shall give not less than 15 days prior notice of cancellation to the(Re)Insured via the broker. If premium due is paid in full to Underwriters before the notice period expires, notice of cancellation shall automatically be revoked. If not, the policy shall automatically terminate at the end of the notice period. Unless otherwise agreed,the Leading Underwriter(and Agreement Parties if appropriate)are authorised to exercise rights under this clause on their own behalf and on behalf of all Underwriters participating in this contract. If any provision of this clause is found by any court or administrative body of competent jurisdiction to he invalid or unenforceable, such invalidity or unenforceahility will not affect the other provisions of this clause which will remain in full force and effect. Where the premium is to be paid through a London Market Bureau, payment to Underwriters will he deemed to occur on the day of delivery of a premium advice note to the Bureau. 1 1/0I LSW3000 Willis addendum to Premium Payment Clause Notice of cancellation in writing for the purpose of the Premium Payment Clause(LSW3001), shall be notice in writing to the Group's Compliance officer at the Willis Building, 51 Lime Street. London EC3M 7DQ and delivered by Registered Post or received and acknowledged personally by the Compliance Officer. The notice will only be accepted if the risk is properly identified and includes at least the name of the insured, the Willis slip reference number,the class of business and any other information which will enable the risk to be readily identified. Further, for the avoidance of doubt, a notice of cancellation sent by e-mail to the Company shall not constitute notice in writing for the purpose of the application of the Premium Payment Clause. Willis of New York, Inc Wii I I C LLOYD'S PRIVACY POLICY STATEMENT UNDERWRITERS AT LLOYD'S, LONDON The Certain Underwriters at Lloyd's, London want you to know how we protect the confidentiality of your non- public personal information. We want you to know how and why we use and disclose the information that we have about you. The following describes our policies and practices for securing the privacy of our current and former customers. INFORMATION WE COLLECT The non-public personal information that we collect about you includes, but is not limited to: • Information contained in applications or other forms that you submit to us, such as name, address, and social security number • Information about your transactions with our affiliates or other third-parties, such as balances and payment history • Information we receive from a consumer-reporting agency. such as credit-worthiness or credit history INFORMATION WE DISCLOSE We disclose the information that we have when it is necessary to provide our products and services. We may also disclose information when the law requires or permits us to do so. CONFIDENTIALITY AND SECURITY Only our employees and others who need the information to service your account have access to your personal information. We have measures in place to secure our paper files and computer systems. RIGHT TO ACCESS OR CORRECT YOUR PERSONAL INFORMATION You have a right to request access to or correction of your personal information that is in our possession. Willis of New York, Inc WIIIIS i . . .� ... CONTACTING US If you have any questions about this privacy notice or would like to learn more about how we protect your privacy, please contact the agent or broker who handled this insurance. We can provide a more detailed statement of our privacy practices upon request. 06/03 LSW1135B Willis of New York, Inc London ORDER HEREON: : 100%of premium and limits herein EFFECTED WITH: 100.0000000% Underwriters placed in London, London. England via Willis Limited (London) 100.0000000%