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HomeMy WebLinkAboutResolution - 2015-R0286 - Direct To Purchase Property Insurance Coverage - 09/10/2015Resolution No. 2015-RO286 Item No. 6.10 September 10, 2015 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Manager of the City of Lubbock is hereby authorized and directed to purchase for and on behalf of the City of Lubbock, property insurance coverage from American Home Insurance Company, for a premium amount not to exceed a rate of .0944 per $100.00; and THAT the City Manager may execute any routine documents and forms associated with said insurance coverage. Passed by the City Council this September 10, 2015 ATTEST: GLE . ROB RTSON, MAYOR Rebe ca Garza, City Secret TO CONTENT: Leisa Hutcheson, Director of Human Resources and Risk Management APPROVED AS TO FORM: . Jeff lladsel, Chief Litigation Attorney RES.Risk Mgmt-American Home Ins. August 26, 2015 Resolution No. 2015-RO286 Commercial property Named insured: City of Lubbock Insurance carrier: American Home Assurance Company — Admitted Terrorism Premium: A.M. Best rating: A, XV as of 2015 Policy number: TBD Policy term: October 1, 2015 to October 1, 2016 Premium: $1,092,012.00 (Includes Terrorism Premium of $10,128) E. (Engineering Fees of $12 0o Not Included within the Total Premium) $12,500 (not included within the Total Premium) Coverage: Property insurance covers your interest against direct physical loss or damage by covered perils to named property that you own or are required to insure. See attached schedule for locations to be covered. Policy form: Special Form Perils covered: Risk of direct physical loss, subject to named policyterms, conditions and exclusions. Includes Equipment Breakdown Item 4. Coverage Territory: United States, its territories and possessions and Puerto Rico, including their respective coastal waters. If any coverage is provided on a worldwide basis, such worldwide coverage shall not include any jurisdiction prohibited or restricted under United Nations resolutions or the trade or economic sanctions, laws or regulations of the European Union or the United States of America. Losses are only covered within the coverage territory. US TIV: Canada TIV: Rest of World TIV: Total TIV: $1,156,981,164 $0 $0 $1,156,981,164 Item 5. Premium and Engineering Fees: A. Total Premium: $1,092,012 B. Terrorism Premium: $10,128 (included within the Total Premium) C. Commission: NIL D. Surcharges: TBD E. Engineering Fees: $12,500 (not included within the Total Premium) Above premiums are exclusive of all taxes, surcharges, and fees unless otherwise shown. State surcharges to be paid by the Insured are not included in the premium above. This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/25/2015 Prepared for City of Lubbock Confidential. p 2015 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 10 Commercial property (continued) Limit of Liability: $500,000,000 (hereinafter, the "Policy Limit") This is our maximum liability in any one occurrence as a result of all covered loss or damage regardless of the number of covered locations, coverages, or Covered Causes of Loss under this Policy. Sublimits of Liability: Sublimits of liability stated below are part of and not in addition to the Policy Limit shown in Item G above. The sublimits are the maximum amount we will pay for all loss or damage arising out of the specific perils or coverages shown below or the maximum number of days for a specific coverage, if applicable. These sublimits of liability and the specified limits of liability contained in the forms, endorsements and extensions attached, if any, are per occurrence unless otherwise indicated. if the words, NOT COVERED are shown, instead of a limit, sublimit amount or number of days, or if a specified amount or number of days is not shown corresponding to any coverage or Covered Cause of Loss, then no coverage is provided for that coverage or Covered Cause of Loss. A. Sublimits Applicable to Specified Covered Causes of Loss 1. Earth Movement: a. Annual Aggregate: $50,000,000 b. Subject to A.1.a. above, the Annual Aggregate for all loss or damage arising out of earth movement for any location wholly or partially within the following states and territory combined: California, Alaska, Hawaii, and Puerto Rico: Not Covered c. Subject to A.1.a. above, the Annual Aggregate for all loss or damage arising out of earth movement for any location wholly or partially within the Pacific Northwest Earthquake Zone Counties: Not Covered d. Subject to A.1.a. above, the Annual Aggregate for all loss or damage arising out of earth movement for any location wholly or partially within the New Madrid Earthquake Zone Counties: Not Covered e. Other Sublimit(s) Applicable to Earth Movement: Not Applicable This proposal is merely a descriptive summary of coverage provided by the Insurance companies being proposed and should be used for reference purposes only. This Is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the Insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/25/2015 Prepared for City of Lubbock Confidential. p 2015 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 11 Commercial property (continued) 1!=9 =11 a. Annual Aggregate: $50,000,000 b. Subject to A.2.a. above, the Annual Aggregate for all loss or damage due to all flood for any location wholly or partially within Special Flood Hazard Areas (SFHA) as defined by the Federal Emergency Management Agency (FEMA): $25,000,000 c. Other Sublimit(s) Applicable to Flood: Not Applicable 3. Named Storm: $500,000,000 This is our maximum liability in any one occurrence for named storm as a result of all loss or damage (to the extent covered) including, but not limited to, loss or damage from wind, hail, lightning, tornado, rain or water (whether driven by wind or not), flood, or any wind driven objects or debris, regardless of the number of covered locations, coverages, or Covered Causes of Loss under this Policy. Other Sublirl Applicable to Named Storm: Not Applicable Subject to the applicable Named Storm Sublimit, in the event loss or damage by flood that occurs concurrently or in any sequence with a named storm, the maximum amount we will pay per occurrence for all such loss or damage by flood shall be the sublimits of liability for flood as shown in A.2.a., A.2.b., and/or A.2.c. whichever is/are applicable. However, if flood is not covered, the maximum amount we will pay per occurrence for all such loss or damage by named storm shall exclude loss or damage by flood. 4. Terrorism: NOT COVERED ® Covered and Included Within the Policy Limit This is our maximum liability in any one occurrence for terrorism as a result of all loss or damage regardless of the number of covered locations, coverages, or Covered Causes of Loss under this Policy. 5. Equipment Breakdown: $100,000,000 This is our maximum liability in any one occurrence for equipment breakdown as a result of all loss or damage regardless of the number of covered locations, coverages, or Covered Causes of Loss under this Policy. Other Sublimit(s) Applicable to Equipment Breakdown: Not Applicable This proposal is merely a descriptive summary of coverage provided by the Insurance companies being proposed and should be used for reference purposes only. This Is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/25/2015 Prepared for City of Lubbock Confidential. C 2015 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 12 Commercial property (continued) B. Sublimits Applicable to Additional Coverages - Each of these sublimits is part of, and not in addition to the Policy Limit and any other sublimits shown in Item 7.A. of the Declarations. 1. Accounts Receivable: $10,000,000 2. Arson or Theft Reward: $100,000 3. Brands and Labels: $5,000,000 4. Building Materials At Off Premises Storage For Property Under Construction: $5,000,000 5. Debris Removal: $2,500,000 or 25% of direct physical loss or damage to all covered property, whichever is less 8. Deferred Payments: $250,000 7. Demolition and Increased Cost of Construction: Demolition Coverage A: No Sublimit Applies Demolition Coverage B: $25,000,000 Demolition Coverage C: $25,000,000 8. Electronic Data and Media: Covered Causes of Loss (Other Than Cyber Perils): Included Cyber Perils: $5,000,000 9. Errors or Omissions: $5,000,000 10. Expediting Expenses: $5,000,000 11. Fairs or Exhibitions: $5,000,000 12. Fine Arts: $25,000,000 (maximum $50,000 per item) 13. Fire Brigade Charges and Extinguishing Expenses: $500,000 14. Fungus, Mold or Spore: $250,000 15. Installation Coverage: $1,000,000 16. Land and Water Clean -Up: $1,000,000 This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/25/2015 Prepared for City of Lubbock Confidential. © 2015 Wells Fargo Insurance Services USA, Inc. All Rights Reserved, Page 13 Commercial property (continued) 17. Locks and Keys: 18. Machinery or Equipment Startup Option: 19. Miscellaneous Unnamed Locations: 20. Money and Securities: 21. Newly Acquired Property: 22. Outdoor Property: 23. Pairs or Sets: 24. Personal Property Not at a Covered Location: 25. Preservation of Property: 20. Professional Fees: 27. Property Removed From a Covered Location: 28. Railroad Rolling Stock: 29. Salespersons Samples: 30. Service Interruption: 31. Spoilage: 32. Transit: 33. Upgrade to Green=: 34. Valuable Papers and Records: 35. Additional Sublimits: Vehicle Physical Damage $100,000 $2,500,000 Applicable to a separate occurrence only $5,000,000 $100,000 $50,000,000 $500,000 No Sublimit Applies $1,000,000 $1,000,000 $250,000 $100,000 $1,000,000 $500,000 $5,000,000 $5,000,000 $5,000,000 25% of the amount payable for direct physical loss or damage, subject to a maximum of $1,000,000. This includes any Time Element loss attributed to Upgrade to Green. $ 5,000,000 $10,000,000 This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/25/2015 Prepared for City of Lubbock Confidential. © 2015 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 14 Commercial property (continued) C. Sublimits Applicable to Additional Time Element Coverages - Each of these sublimits is part of, and not in addition to the Policy Limit and any other sublimits shown in Item 7.A. of the Declarations. 1. Attraction Property: 30 days, subject to a maximum of $1,000,000 2. Contingent Time Element: $5,000,000 The following sublimits are subject to the Contingent Time Element Sublimit shown in Subsection C.2. above: a. Named Supplier/Customer: 5,000,000 b. Unnamed Supplier/Customer: 5,000,000 3. Contractual Penalties: $100,000 4. Crisis Management: 5. Extended Period of Indemnity: 6. Extra Expense: 7. Ingress & Egress: B. Interruption by Civil or Military Authority: 9. Logistics Extra Cost: 10. Rental Value: 11. Royalties: 12. Service Interruption: 13. Soft Costs: 30 days, subject to a maximum of $100,000 365 days 25,000,000, except Generation locations $100,000 at Power 30 days, subject to a maximum of $1,000,000 30 days, subject to a maximum of $1,000,000 $100,000 $260,000 $100,000 $5,000,000 Qualifying period: 24 hours $500,000 14. Business Income / Business Interruption: $5,000,000 except 15. Business Income/Business Interruption at Power Generation locations only: $1,000,000 but only for loss or damage caused directly by a defined peril excluding the cause of loss being explosion or equipment breakdown in which coverage would be NOT COVERED. This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/25/2015 Prepared for City of Lubbock Confidential. © 2015 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 15 Commercial property (continued) D. Contractor's Equipment: $750,000 per item subject to a maximum per occurrence subiimit of $10,000,000 Item 8. Additional Time Element Provisions: A. Ordinary Payroll: ® Provided for 180 days ❑ Not Provided B. Maximum Operations Period of Indemnity (Gross Profits): 12 months C. Maximum Construction Period of Indemnity (Gross Profits): 12 months Item 9. Maximum Amount Payable: In the event of covered loss or damage hereunder, our liability shall be limited to the lesser of the following: A. The actual adjusted amount of loss or damage, less applicable deductible(s), or B. The limit of liability or applicable subiimit of liability shown in this Policy or endorsed onto this Policy. Item 10. Deductibles: The deductibles shown below apply per occurrence unless otherwise stated. A. Policy Deductible: $250,000 Applicable to all covered loss or damage unless otherwise stated below or in this Policy. B. Earth Movement: 1. $250,000 for all loss or damage arising out of earth movement, except if B.2., B.3., 8.4. or 8.5. below applies; 2. Not Covered of Total Insurable Values at the time of the loss at each covered location involved in the loss or damage, subject to a minimum of Not Covered any one occurrence for all loss or damage arising out of earth movement in California, Hawaii, Alaska, and Puerto Rico; 3. Not Covered of Total Insurable Values at the time of the loss at each covered location involved in the loss or damage, subject to a minimum of Not Covered any one occurrence for all loss or damage arising out of earth movement in the Pacific Northwest Earthquake Zone Counties; 4. Not Covered of Total Insurable Values at the time of the loss at each covered location involved in the loss or damage, subject to a minimum of Not Covered any one occurrence for all loss or damage arising out of earth movement in the New Madrid Earthquake Zone Counties. 5. Other Earth Movement Deductible: Not Applicable This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/25/2015 Prepared for City of Lubbock Confidential. © 2015 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 16 Commercial property (continued) C. Flood: 1. $250,000 for all loss or damage arising out of flood, except if C.2. or C.3. below applies; 2. 5% of Total Insurable Values at the time of the loss at each covered location involved in the loss or damage, subject to a minimum of $1,000,000 any one occurrence for all loss or damage arising out of flood at any location wholly or partially within Special Flood Hazard Areas (SFHA) as defined by the Federal Emergency Management Agency (FEMA). 3. Other Flood Deductible: Not Applicable D. Named Storm: 0% of Total Insurable Values at the time of the loss at each covered location involved in the loss or damage subject to a minimum of $250,000 any one occurrence for all loss or damage arising out of named storm. Other Named Storm Deductible: Not Applicable E. Equipment Breakdown: 1. If one or more deductibles are shown below, each will be applied separately: a. $25,000 for all loss or damage to covered equipment per occurrence b. 24 Hours for time element coverage provided under SECTION VI - TIME ELEMENT COVERAGES per occurrence c. 0 times the average daily value for time element coverage provided under SECTION VI - TIME ELEMENT COVERAGES during the period of indemnity d. 0 hours following the occurrence per covered location for time element coverage provided under SECTION VI - TIME ELEMENT COVERAGES As used above, average daily value means your business income that would have been earned during the period of indemnity, divided by the number of operating days in that period. 2. Transformers: $25 per KVA min. $1.50 per KVA, $25,000 minimum per occurrence 3. Electrical Generating Equipment: $100,000 per occurrence 4. Power Generating Stations: $100,000 per occurrence 5. Steam and Gas Turbines and Driven Generators: $250,000 per occurrence 6. Cook #2 54.3 MW Turbine or Generator: $350,000 per occurrence 7. Massengale #8 43 MW Turbine or Generator: $500,000 per occurrence Additional Deductibles: This proposal is merely a descriptive summary of coverage provided by the Insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It Is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/25/2015 Prepared for City of Lubbock Confidential. Q 2015 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 17 Commercial property (continued) F. Windstorm or Hail: $250,000 per occurrence G. LIA Hanger Building #310 (Chaparral) — 5417 N. Walnut: $50,000 per occurrence H. LIA Warehouse Building #722 (Thiel) — 5500 N. Zenith: $50,000 per occurrence I. LIA Hanger #32 (G&G Avionics) — 5902 N. Cedar: $50,000 per occurrence J. LIA Warehouse Building #710 (Nortec) — 2828 E. Dubuque: $50,000 per occurrence K. LIA Warehouse Building #714 (Marco) — 5612 N. David Ave.: $50,000 per occurrence L. LIA Warehouse Building #716 (Marco Steel) - 5618 N. David Ave.: $50,000 per occurrence M. LIA Warehouse Building #721 (Theil) — 5501 N. Zenith: $50,000 per occurrence N. Time Element: 24 Hours O. Contractor's Equipment: $25,000 per occurrence (applies to equipment less than $250,000 in value) P. Contractor's Equipment: $50,000 per occurrence (applies to equipment valued $250,000 or greater) Q. Electronic Data Processing Equipment (Hardware): $25,000 per occurrence The following two paragraphs apply to the deductibles set forth in Item 10.A. through 10.Q. above, inclusive: In each case of loss or damage covered by this Policy, we shall not be liable unless you sustain loss or damage in a single occurrence greater than any applicable deductible described herein. When this Policy covers more than one covered location, the deductible shall apply against the total loss or damage covered by this Policy in any one occurrence, unless otherwise stated herein. If two or more deductible amounts provided in this Policy apply to a single occurrence, the total to be deducted shall not exceed the largest deductible applicable unless otherwise stated in this Policy. If covered loss or damage by Flood occurs concurrently or in any sequence with a named storm, then we shall apply the flood deductible set forth in Item 10.C. or the named storm deductible set forth in Item 10.D., whichever is greater. This proposal is merely a descriptive summary of coverage provided by the Insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date; 8/25/2015 Prepared for City of Lubbock Confidential. p 2015 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 18 Commercial property (continued) Special Terms and Conditions: I. The following provision shown in Subsection B. of SECTION I - INSURING AGREEMENT AND COVERED PROPERTY: 5. Equipment breakdown, which means direct physical loss or damage to covered equipment that is the direct result of an accident. is deleted in its entirety and replaced with the following: 5. Equipment breakdown, which means direct physical loss or damage to covered equipment at a covered location that is the direct result of an accident. II. The following provision shown in Subsection B. of SECTION III - VALUATION: 12. Contractor's equipment shall be valued at actual cash value, unless an agreed value applies is deleted in its entirety and replaced with the following: 12. Contractor's equipment shall be valued at replacement cost. 111. The following provisions are added to Subsection B. of SECTION III - VALUATION: 13. Covered Equipment greater than 25 years old shall be valued at actual cash value. 14. GasTurbine Generator Units greater than 15 years old shall be valued at actual cash value. IV. The following provision shown in SECTION IV - PROPERTY NOT COVERED: 14. Transmission and distribution lines of any type or description; except when located on the covered location or within 1000 feet thereof; and is deleted in its entirety and replaced with the following: 14. Transmission and distribution lines of any type or description; and V. The following provisions are added to SECTION IV - PROPERTY NOT COVERED: 18. Plastic media used in trickle filters and/or sewage processing equipment. 17. Idle Unit(s) at Massengale Station including but not limited to Steam Turbine Generator Unit(s) 4 and 5 and Nordberg Diesel Generator Unit(s). Unit means a boiler, turbine or generator. 18. Any Unit(s) that is off-line and/or otherwise inoperative for a period of 90 or more consecutive days, unless the Unit(s) is undergoing repairs. As respects off-line or an otherwise inoperative Unit(s) not undergoing repairs, coverage will be subject to 72 -hour waiting period on such a Unit(s) returned to active service. Unit means a boiler, turbine or generator. We shall be notified in advance of any Unit(s) scheduled to undergo startup operations. This proposal is merely a descriptive summary of coverage provided by the Insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/25/2015 Prepared for City of Lubbock Confidential. ® 2015 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 19 Commercial property (continued) VI. The following exclusion is added to the Policy: We will not pay for the cost to purchase power for resale or to meet your contractual obligations. VII. The following provision shown in Subsection 4. of SECTION IX — DEFINITIONS: 4. Covered equipment means the following: a. Equipment that generates, transmits or utilizes energy, including electronic communications and data processing equipment; or b. Equipment which, during normal usage, operates under vacuum or pressure, other than the weight of its contents. The following is not covered equipment: a. Structure, foundation, cabinet, compartment or air supported structure or building; b. Insulating or refractory material; c. Sewer piping, underground vessels or piping, or piping forming a part of a sprinkler system; d. Water piping other than boiler feedwater piping, boiler condensate return piping or water piping forming a part of a refrigerating or air conditioning system; e. Vehicle or any equipment mounted on a vehicle; I. Satellite, spacecraft or any equipment mounted on a satellite or spacecraft; g. Dragline, excavation or construction equipment; h. Equipment manufactured by you for sale. is deleted in its entirety and replaced with the following: 4. Covered equipment means the following: a. Equipment that generates, transmits or utilizes energy, including electronic communications and data processing equipment; or b. Equipment which, during normal usage, operates under vacuum or pressure, other than the weight of its contents. The following is not covered equipment: a. Structure, foundation, cabinet, compartment or air supported structure or building; b. Insulating or refractory material; o. Sewer piping, underground vessels or piping, or piping forming a part of a sprinkler system; This proposal is merely a descriptive summary of coverage provided by the Insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/25/2015 Prepared for City of Lubbock Confidential. 0 2015 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 20 Commercial property (continued) d. Water piping other than boiler feedwater piping, boiler condensate return piping or water piping forming a part of a refrigerating or air conditioning system; e. Vehicle or any equipment mounted on a vehicle; f. Satellite, spacecraft or any equipment mounted on a satellite or spacecraft; g. Dragline, excavation or construction equipment; h. Equipment manufactured by you for sale; 1. Any rotating biological contractor. VIII. The following provision shown in Subsection 1. of SECTION IX — DEFINITIONS: 1. Accident means a fortuitous event that causes direct physical loss or damage to covered equipment. The event must be one of the following: a. Mechanical breakdown, including rupture or bursting caused by centrifugal force; b. Artificially generated electrical current, including electric arcing, that disturbs electrical devices, appliances or wires; c. Explosion of steam boilers, steam pipes, steam engines or steam turbines owned or leased by you, or operated under your control; d. Loss or damage to steam boilers, steam pipes, steam engines or steam turbines caused by or resulting from any condition or event inside such equipment; or e. Loss or damage to hot water boilers or other water heating equipment caused by or resulting from any condition or event inside such boilers or equipment. is deleted in its entirety and replaced with the following: 1. Accident means a fortuitous event that causes direct physical loss or damage to covered equipment. The event must be one of the following: a. Mechanical breakdown, including rupture or bursting caused by centrifugal force; b: Artificially generated electrical current, including electric arcing, that disturbs electrical devices, appliances or wires; c. Explosion of steam boilers, steam pipes, steam engines or steam turbines owned or leased by you, or operated under your control; d. Loss or damage to steam boilers, steam pipes, steam engines or steam turbines caused by or resulting from any condition or event inside such equipment; or e. Loss or damage to hot water boilers or other water heating equipment caused by or resulting from any condition or event inside such boilers or equipment. Accident does not include cracking of any part exposed to the products of combustion of any gas turbines. This proposal is merely a descriptive summary of coverage provided by the Insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/25/2015 Prepared for City of Lubbock Confidential. ® 2015 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 21 Commercial property (continued) IX. Designated Adjuster: Trey Johnson, EGA, York Claims Service, 5501 LBJ Freeway, Suite 300, Dallas, TX 75240 X. Signed Statement of Values, required at binding XI. Favorable inspections and compliance with recommendations (if any) NOTICE: The Terrorism Risk Insurance Act of 2002, as amended by the Terrorism Risk Insurance Program Reauthorization Act of 2007 (collectively, "TRIA") is scheduled to terminate on December 31, 2014. As such, attached to this quote is the "Terrorism Exclusion (applicable upon termination of the terrorism insurance program)" Endorsement. If the named insured elects to purchase terrorism coverage, this endorsement will be attached to the binder and will become a part of the policy when issued. In the event that the named insured elects to purchase terrorism coverage, and in the further event that TRIA is terminated or expires as aforesaid, then notwithstanding that the named insured elects to purchase terrorism coverage, such coverage shall cease effective December 31, 2014 in accordance with the terms of the "Terrorism Exclusion (applicable upon termination of the terrorism insurance program)" Endorsement. PLEASE READ THE ATTACHED ENDORSEMENT CAREFULLY. This proposal is merely a descriptive summary of coverage provided by the Insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the polity contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/25/2015 Prepared for City of Lubbock Confidential. m 2015 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 22 Commercial property (continued) POLICTHOLDER DISCLOSURE NOTICE OF TERRORISM DiSUPU NCE COVER9GE (RIGHT TO PURCHASE COVERAGE) You are hereby notified that under the Terrorism Risk-- hmsmance Act. as amended that you have a right to purchase insurance coverage for losses resulting from acts of terrorism. m defined in Section 102x1 i of the dcr. The term "act of terrorism' means any act that is certified by the Secretary- of the Treasury—in concurrence with the Secretary of State, and the Attorney General of the 'United States—to be an act of terrorism, to be a violent act or an act that is dangerous to Inman life, proper. or infrastructure: to have resulted in damage within the United States. or outside the United States in the case of certain air carriers or vessels or the premises of a United States mission; and to have been committed by an individual or individuals as part of an effort to coerce the avilian population of the United States or to influence the polity or affect the conduct of the United States Goverment by coerciam. YOU SHOULD KNOW THAT WHERE COVERAGE IS PROVIDED BY THIS POLICY FOR LOSSES RESULTING FROM CERTIFIED ACTS OF TERP.ORISM. SUCH LOSSES MAY BE PARTIALLY REIMBURSED BY THE UNITED STATES GOVEP\titENr UNDER A FORMUTA ESTABLISHED BY FEDERAL LAW. HOWEVER, YOUR POLICY MAY CONTAIN OTHER EXCLUSIONS WHICH MIGHT AFFECT YOUR COVERAGE, SUCH AS AN EXCLUSION FOR NUCLEAR EVENTS. UNDER THE FORMUIIA• THE UNITED STATES GOVERNMENT GENERALLY REIMBURSES 85% OF COVERED TERRORISM LOSSES ERCEEDL\G THE STATUTORILY ESTABLISHED DEDUCTIBLE PAID BY THE INSURANCE COMPANY PROVIDING THE COVERAGE. THE PRE? -BUM CHARGED FOR THIS COVERAGE IS PROVIDED BELOW AND DOES NOT INCLUDE ANY" CHARGES FOR THE PORTION OF LOSS THAT MAY BE COVERED BY THE FEDERAL GOVERNMENT CYDER THE ACT. YOU SHOULD ALSO KNOW THAT THE TERRORISM RISK INSURANCE ACT, AS AMENDED, CONTAINS A $100 BILLION CAP THAT LIMITS US. GOVERNMENT RERVIBURSEMENT AS WELL AS INSURERS' LiABII= FOR LOSSES RESULTING FROM CERTIFIED ACTS OF TERRORISM WHEN THE AMOUNT OF SUCH LOSSES IN ANY ONE CALENDAR YEAR EXCEEDS $IGO BILLION. IF THE AGGREGATE INSURED LOSSES FOR ALL INSURERS EXCEED $100 BILLION, YOUR COVERAGE MAY BE REDUCED. Policybolder/Applicanfs Signature Policybolder/Applicant's Printed Name 96555 (2/08) C 2007 National Association of Insurance Commissioners This proposal is merely a descriptive summary of coverage provided by the Insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/25/2015 Prepared for City of Lubbock Confidential. C 2015 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 23 Commercial property Schedule of locations This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/25/2015 Prepared for City of Lubbock Confidential. Q 2015 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 24