HomeMy WebLinkAboutResolution - 2000-R0241 - Contract - Sanford Insurance - Machinery Insurance Coverage Service - 07/13/2000Resolution No. 2000-80241
July 13, 2000
Item No. 22
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock, a contract with Sanford
Insurance/CNA of Lubbock, Texas, for Boiler and Machinery Insurance Coverage
Services, and all related documents. Said contract is attached hereto and incorporated in
this resolution as if fully set forth herein and shall be included in the minutes of the City
Council.
Passed by the City Council this 13th day of July , 2000.
ATTEST:
APPROVED AS TO CONTENT:
t 11 h; �4A AWA
Victor hnan
Purchasing Manager
APPROVED AS TO FORM:
William de Haas
Competition and Contracts Manager/Attorney
WCcdocs/2000Sanford lnsurance.res
June 29, 2000
I
Resolution No. 2000-RO241
Ju3.y 13, 2000
Item No. 22
BOILER AND MACHINERY INSURANCE AGREEMENT
THIS AGREEMENT entered into this 15'h day of July, 2000 by and
between the CITY OF LUBBOCK, TEXAS, a Municipal Homerule Corporation
(hereinafter called "City") and SANFORD INSURANCE AGENCY, a registered
agent/broker in the State of Texas, (hereinafter called "Agency").
RECITALS
WHEREAS, The City desires to purchase coverage for Boiler and
Machinery Insurance; and
WHEREAS, the Agency is qualified and has demonstrated that it can
provide said coverage; and
WHEREAS, the City and the Agency desire to enter into an Agreement to
provide said services.
NOW THEREFORE, the parties agree as follows:
1. The parties agree to abide by the terms and conditions of the Boiler and
Machinery Insurance policy and all it's amendments and endorsements,
which are attached hereto as Exhibit "A" which is incorporated as if fully
set forth herein.
2. This agreement is for a term of one (1) year from the effective date and
may be negotiated and renewed annually for two (2) additional one (1) year
terms at the mutual agreement of both parties.
3. Notices or communications from the City to the Agency shall be addressed
to the Agency and shall be deemed to be duly given or served, if the same
shall be sent by United States mail, return receipt requested, to the address
shown below:
Sanford Insurance Agency
6303 Indiana Avenue
P. O. Box 64790
Lubbock, Texas 7946404790
Notices or communications from the Agency to the City shall be addressed
to the City and shall be deemed to be duly given or served if the same shall
be sent by United States mail, return receipt requested, to the address
shown below:
Boiler and Machinery Insurance Agreement, City of Lubbock & Sanford Insurance Agency
Page 1
City of Lubbock
P. O. Box 2000
Lubbock, Texas 79457
Notices and communications described in this paragraph that are sent by
United States mail will be deemed to be duly given or served on the third
business day following the date the notice is mailed.
4. THIS CONTRACT SHALL BE CONSTRUED AND ENFORCED
ACCORDING TO THE LAWS OF THE STATE OF TEXAS. VENUE
SHALL BE LUBBOCK COUNTY, TEXAS.
5. The City may terminate the services of the Agency at any time upon giving
the Agency sixty (60) days written notice. The Agency may terminate in
accordance with the contract and the laws of the State of Texas by giving
sixty (60) days written notice. The Agency after termination shall
complete the processing of all services described in the Agreement, which
have commenced prior to the effective date of the termination of this
agreement.
SIGNED THIS DAY, the 13th of July , 2000.
� 1►Irk
'k WID I'll r• •�
APPROVED AS O CONTENT:
Mary AndiQws
Managing Director Human Resources
SANFORD INSURANCE AGENCY
By: a
Title: r'eS c
APPROVED AS TO FORM:
William de Haas
Competition and Contracts Manager
Boiler and Machinery Insurance Agreement, City of Lubbock & Sanford Insurance Agency
Page 2
r
L�
r'
REYEWAL ENDORSEMENT
It is asrreed that in consideration of the payment of the renewal p=ivaL this policy, as amended by the
endorsements attached thereto, is hereby renewed for the period stated below, subject to all itsterms,
except as otherwise stated below-.
Renewal Premium: 513,909-00
Policy Period: From December 31, 1999 To December 31, 2000
Limit ofl:iabilirv.
(a) S1,000,000 each claim
(b) 51,000,000 aggregate each policy period
Deductible:
(a) 55,000 each claim
(b) S15,000 aggregate each policy period
Further, this insurance is hereby amended as indicated by "X".
1- [ ] Named Insured Changed, as Shown Below
2. [ J Insured's Address Changed, as Shown Below
Additional Insureds) -or Subject(s) of Coverage, Tamed Below, Added
4. [ J Additional Insureds) or Subject(s) of Coverage, Named Below, Deleted
5. [ ] Other
This endorsement forms a part of the policy to which attached
Mail To: Issued To:
IIAT Insurance Agency, Inc. Sanford Insurance Agency
P.O. Box 634437 6303 Indiana Avenue
Austin, TX i 3 7 63 PO Box 64790
Lubbock, TX 79464
Endorsement Effective December 31. 1999
Countersigned.
.. ...............
Authorized Representative
Policy No. PALS9501-6
EMPLOYERS REINSURANCE CORPORATION
President Secretary
P aL I a Endorsement Serial tio. PAL- I A ( I Q9. )
The Declarations. Form ERC1219j. Item 1. Named Insured is completed to read:
The Sanford Agency, Inc, dba Sanford Insurance Agency;
" S.T, Insurance Services, Inco
The Sanford Agency, Inc. dba Snyder Insurance Agency,
S.T. Insurance Services, Inc. dba Sanford Association Billing
All other terns and conditions of this policy shall remain unchanged
This endorsement forms a pact of the policy to which attached, effective on the inception date of the policy unless
otherwise stated herein. (The information below is required only when this endorsement is issued subsequent to the
Preparation of the policy.)
Endorsement Effective December 31, 1993 Policy No. PALS9501 - 4
Named Insured Sanford insurance Agency
Countersigned.
E VPLOY£RS R£I1VSUR4eVC£ CORPOR4TIOrV
........................................ 44AIAA-
Authorized
Representative President Secretary
Endorsement Serial No. G-50
JUr► 21 'DO 04:34PM V►A Ir► UPPI'Cr
CWA
For All the Commriments You Make'
P.2
Important Notice To Policyholders
Property, Crime, Inland Marine and Boiler and Machinery Coverage Parts
(Attachment of G -129948-A, Exclusion of Coverage For Date Related Costs)
This notice is designed to give you an overview of how the Property, Inland Marine, Crime or Boiler !Machinery
Coverage Part or your policy addresses date related c,aims. This notice is not your policy. READ YOUR POLICY
CAREFULLY to determine rights, duties, and what is and is not covered. Only the provisions of your policy de-
termine the scope of your insurance protection.
If your policy contains a Property, Inland Marine, Crime or Boiler Machinery Coverage Part,
G -129948-A, Exclusion of Coverage For Date Related Costs will be attached to your policy. This new exclusion
endorsement specifically reinforces that there is no coverage under the Commercial Property, Inland Marine,
Crime and Boiler and Machinery Coverage Parts of your policy for.
• Costs or expenses incurred to assess, design, identify, inspect, install, maintain, modify, monitor. rectifry, re-
pair, replace, reprogram or test any equipment, systems, software or their components due to the manner, or
in anticipation of the manner, in which equipment, systems, software, or their components recognize,: inter-
pret, process or differentiate dates or times, or are unable to recognize, interpret, process or differeintiate
dates or times; or
• Loss of business income or extra expense incurred due to the period of time required to assess. design, iden-
tify, inspect, install, maintain, modify, monitor,rectify, repair, replace, reprogram or test any equipment, sys-
tems, software or their components due to the manner, or in anticipation of the manner, in which equipment
systems, software, or their components recognize, interpret, process or differentiate dates or times, or are
unable to recognize. interpret, process or differentiate dates or times.
Please note that this exclusion endorsement is not a reduction in the coverage provided under the existing policy
forms. Physical loss or damage is a prerequisite to coverage under all first party property damage and time ele-
ment coverages, as set forth clearly in your policy. In the majority of cases, it is anticipated that date -related inci-
dents will not result in direct physical loss or damage, but will instead result in dissatisfaction with the manner in
which equipment, systems, software, or their components recognize, interpret, process or differentiate dates or
times, even though the property is operating as it was designed or programmed to operate.
For example, if the equipment is programmed to only accept the last two digits of any year (e.g.
XX) and the programming is also designed to recognize the first two digits of the year as 19, the
equipment will correctly recognize the year 2001 as 1901, as designed. It may not be the result
that the user is looking for, but there is no direct physical loss or damage to the equipment, as it is
performing exactly as It was designed.
In the event direct physical loss or damage does result from a date related incident, we will rely on our existing
policy provisions and exclusions in determining whether or not there is coverage for the resulting loss or damage.
G-1 32246-A
(Ed. 07/98)
T111-21-2000 17 : 991': P. 02
7url 21 '00 04:3-4PI'l 1:1`44 1r1SLFf44f:E
vor Alt the Commitments You Make'
GENERAL COMMERCIAL PROGRAM
GENERAL DECLARATIONS
RENEWAL OF
Named Insured and.Mailing Address Agent
Business Description
Insured Is: ❑ Individual ❑ Corporation ❑ PartnersNo ❑ Joint venture ❑ Other
F.3
Insurance is provided for only those coverages for which a premium is shown and is subject to a1i the terms and conditions outlined in
each coverage section.
The specific limits of coverage are shown on each coverage declaration sheet.
The insuring company providing each specified coverage shah be your insurer for that part
Coverage Polity Policy _ -- Insuring
g Period Number cr„"r 12"U Pre"Wm,
Commercial Property
Fr.
To:
$
Commercial General Liability
Fr To: To:
ommercial Crime
Fr.
To:
$
Commercial Inland Marine
Fr.
To:
$
Boiler and Machinery
Fr
To:
5
Ccmmercial Auto
Fr.
To:
S
Other (Describe):
Fr.
To:
S
Other (Describe),
Fr.
_
To:
S
Other (Deccbe): 1
Fr.
To:
$
TOTAL
S
—W ra7a�ic a6 nu.cyuull v# w7 wiaiu.almw W14 tofu n1VIVIUup1 VOVCFdWC Wcuarinuona.
Forms applicable to all coverages except Other (Described):
Ccuntersigned,
Date
41•A
Chairmen of the Board
By:
Authorized Agent
Secretary
THESE DECLARATIONS TOGETHER WITH THE COMMON POLICY CONDITIONS, COVERAGE PART COVERAGE FORM(S) AND FORMS AND
=NOORSEMENTS, IF ANY, ISSUED TO FORM A PART THEREOF, COMPLETE THE ABOVE NUMBERED POLICYSES)
'a -56376-A
!ED 71Ee
DATE ISSUED- June 21, 200
T111-21-2000 1-1:377
99% P. 0-1
.;Ur1 21 04:3.112ri (.r 1A jr+_i_FF,,-=
COMMON POLICY CONDITIONS
All Coverage Parts included in this policy are subject ao the fcifawing conditions.
A. CANCELLATION
1. The first Named Insured shown in the Decla-
rations may cancel this policy by mailing or
delivering to us advance written notice of
cancellation.
2. ' We`may cancel this policy by. mailing or de-
livering to the first Named Insured written
notice of cancellation at least:
a. 19 days before the effective date of
dancellation if we cancel for nonpay-
ment of premium; or
b. 30 days before the effective date o'
cancellation if we cancel for any other
reason.
3. We will mail or deliver our notice to the first
Named Insured's last mailing address
known to us.
4. Notice of cancellation will state the effective
date of cancellation. The policy period will
end on that date.
P..1,
fl. inspections And Surnarys
We have the right but are not obligated to:
1. Make inspections and surveys at anytime,
2. Give you reports on the conditions we find:
and
S. If this policy is cancelled, we will send the
first Named Insured- any premium refund E.
due. If we cancel, the refund will be pro rata.
If the first Named Insured cancels, the re-
fund may be less than pro rata. The cancel-
lation will be effective even if we have not
made or offered a refund.
S. If notice is mailed, proof of mailing will be
sufficient proof of notice.
S. Changes
This policy contains all the agreements between
you and us concerning the insurance afforded.
The first Named Insured shown in the Declara-
tions is authorized to make changes in the terms
of this policy with our consent This policy's
terms can be amended or waived only by en-
dorsement issued by us and made a part of this
policy.
.C. Examinatlon Of Your Books And Records
We may examine and audit your books and rec-
ords as they relate to this policy at any time
during the policy period and up to three years
afterward.
F.
3. Recommend changes.
Annyy inspections, surveys, reports or recomrrien-
dations relate only to Asurabitrty and the rerrs-
ums to be charged. We do not matte safety in-
spections. We do not undertake to, perform the
duty of any person or organization to provide for
the health or safety of workers or the public. And
we do not warrant that conditions:
1. Are safe or healthful; or
2. Comply with laws, regulations, codes or
standards.
This condition applies not only to us. but also to
any rating, advisory, nate service or similar or-
ganization which makes insurance inspections,
surveys. reports or recommendations.
Premiums
The first Named Insured shown in the Declara-
tions:
1. Is responsible for the payment of all premi-
ums: and
2. Will be the payee for any return premiums
we pay.
Transfer Of Your Rights And Duties Under
This Policy
Your rights and duties under this policy may not
be transferred without our written consent ex-
cept in the case of death of an individual Named
Insured.
f you die, your rights and duties will be trans -
erred to your legal representative but only while
acting within the scope of duties as your legal
representatnre. Until your legal representative is
appointed, anyone having proper temoorary
custody of your property will have your rights
and duties but only with respect to that property
IL 0017 1185 Copyright, Insurance Services Office, Inc., 1983, 1992
7111-21-2000 1-7: 99% P. 0-
7ur+ 21 cc 04 : 3Si-r1 r_r ii; it isup-r u.r_
p c
INTERLINE
IL 00 03 04 98
THIS ENDORSEMENT CHANGES THE POUCY. PLEASE READ IT CAREFULLY.
CALCULATION OF PREMIUM
This endorsement modifies insurance provided under the following:
BOILER AND MACHINERY COVERAGE PART
BUSINESSOWNERS POLICY
COMMPRCIAL AUTOMOBILE COVERAGE PART
COMMERCIAL CRIME COVERAGE PART
COMMERCIAL GENERAL LIABILITY COVERAGE PART
COMMERCIAL INLAND MARINE COVERAGE PART
COMMERCIAL PROPERTY COVERAGE PART
EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE PART
FARM COVERAGE PART
LIQUOR LIABILITY COVERAGE PART
OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART
PROFESSIONAL LIABILITY COVERAGE PART
RAILROAD PROTECTIVE LIABILITY COVERAGE PART
SPECIAL PROTECTIVE AND HIGHWAY LIABILITY POLICY - NEW YORK
The follawing is added:
The premium shown in the Declarations was computed based on rates in effect at the time the policy was issued.
On each renewal, continuation, or anniversary of the effective date of this policy, we will compute the premium in
accordance with our rates and rules then in effect
IL 00 03 04 98 Copyright, Insurance Services Office, Inc., 1997 Page 1 of 1
T111-21-2000 17. 17 P. cc
J
11JI c1 '00 04:35pri CNA Iri,�JFr�ta=_ F.
0
IL 02 8811 92
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
TEXAS CHANGES CANCELLATION
.. AND NONRENEWAL
This endorsement modifies insurance provided under the fo,lowing:
BOILER AND MACHINERY COVERAGE PART
COMMERCIAL CRIME COVERAGE PART
COMMERCIAL INLAND MARINE COVERAGE PART
A. The following is added to Paragraph 2. of the CANCELLATION Common Policy Condition:
We may cancel this policy for any reason except, that under the provisions of the Texas Insurance Code, we
may not cancel this policy solely because the policyholder is an elected official.
S. The following condition is added:
NONRENEWAL
We may elect not to renew this policy except. that under the provisions of the Texas insurance Code, we may
not refuse to renew this policy solely because the policyholder is an elected official.
0
IL 02 88 1192 Copyright, Insurance Services Office. Inc., 1993 Page 1 of 1
1111-21-2 000 17: 37 39/. P. E5
1I J; 21 ' ^0 0,4 : ?5i -r1 ::"If; it �,LPFr
P.7
IL 04 7109 92
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
TEXAS CHANGES - LOSS PAYMENT
This endorsement modifies insurance provided under the following:
BOILER AND MACHINERY COVERAGE PART
COMMERCIAL CRIME COVERAGE PART
FARM COVERAGE PART — LIVESTOCK COVERAGE FORM
FARM;COVERAGE PART—MOBILE AGRICULTURAL MACHINERY AND EQUIPMENT
COVERAGE FORM
COMMERCIAL INLAND MARINE COVERAGE PART
A. LOSS PAYMENT
1. With respect to the BOILER AND MACHI-
NERY COVERAGE PART and COMMER-
CIAL CRIME COVERAGE PART, the
following conditions are added.
2. With respect to the COMMERCIAL
INLAND MARINE COVERAGE PART, the
following conditions replace Item E. LOSS
PAYMENT in the Commercial Inland
Marine Loss Conditions.
3. With respect to the FARM COVERAGE
PART, the following conditions replace
paragroohs c. and t. of the Loss Payment
Condition -
a. Claims Handling
(1) Written 15 days after we receive
written notice of claim, we will:
IL 01 7109 92
(a) Acknowledge receipt of the
clam. If we do not
acknowledge receipt of the
claim in writing, we will keep
a record of the date, method
and content of the
acknowledgment;
(b) Begirr any investigation of
the claim; and
(c) Request a signed, sworn
proof of loss, specify the in-
formation you nwst provide
and supply you with the
necessary forms. We may
request more information at
a later date, if during the
investigation of the ckairn
such additional information
is necessary.
(2) We will notify you in writing as to
whether.
(a) the claim or part of the claim
will be paid;
(b) The claim or part of the
claim has been denied, and
inform you of the reasons
for denial;
(c) More information is
necessary; or
(d) We need additional time to
reach a decision. If we need
additional time, we will
Inform you of the reasons
for such need.
We will provide notification as
described in (2)(a) through (2)(d)
above, within:
(1) 15 business days after
we receive the signed,
sworn proof of loss and
all information we
requestea: or
Copyright. Insurance Services Office, Inc., 1992
Page 1 of 2
JIJ I-2 i -?000 i ^ -- 9131k P.
Till 21 '00 0.4* 35pm r:rlF Ir;SLFAru
P.8
(II) 30 days after we
within 5 business days after the date
receive the signed,
you have complied with such terms.
sworn proof of loss and
C. castropbe clahns
all information we
requested, if we have
If a claim results from a weatMr
reason to believe the
retated calasttaghe or a major natural
loss resulted from
disaster, the clam handling and claim
arson.
payment deadlines described In a.
If we have notified that we
and b. above are extended for an
additional 15 days.
need additional titre to mach a
decision, we must then either
Catastrophe or Major Natural Oisaster
approve or deny the claim within
means a weather related event which
45 days of such notice.
is:
b. 'We will pay for covered loss or
(1) Declared a disaster under the
damage within 5 business days after.
Texas Disaster Act of 1975; or
(1) We have notified you that
(2) Determined to be a catastrophe
payment of the claim or part of
by the State Board of Insurance
the claim will be made and have
d. The term "business day", is used in
reached agreement with you on
this endorsement, means a day other
the amount of loss; or
'
than Saturday, Sunday or a holiday
(2) An appraisal award has been
recognized by the state of Texas.
made.
B. With respect to the Commercial Inland Marine
However, if payment of the claim or
coverage part the following is added:
part of the claim -it conditioned on
We will not be liable for an y Part $ #
your compliance with any of the terms
_
has been paid or made good by others.
of this policy, we will make payment
IL 01 7109 92
Copyright, Insurance Services Office, Inc.. 1992
Page 2 of 2
7Ur 1-21-2000 17: 77 99% P. 08
1114 21 '0,0 04: ---6ptl f:r Ip I r I SUP r a: -
P.9
G -124576-A
,ED. 02196)
111.1-21-2000 + 99.': P. 0.3
CA!A
For A/1 the ComntRArcnts VbU ;Make`
POLICY NUM8ER COVERAGE PROvFQED e7 F AGCY
NAMED INSURED AND ADDRESS
I AGENT
POLICY PQRIOD' t j
From To at 12:01 A.M.
Standard Time at your mailing address shown above.
BOILER AND MACHINERY COVERAGE PART DECLARATIONS
-�� .--
IN RETURN FOR THE PAYMENT OF THE PREMIUM, AN17 SUBJECT TO ALL THE TERMS
CONTAINED HEREIN, WE AGREE WITH YOU TO PROVtDc THE INSURANCE As STATED.
LIMITS OF.INSURANCE AND PREMIUM
LIMITS OF INSURANCE DEDUCTIBLE PREMIUM
~LOCATION
OF'OBJECTS' SHOWN BELOW:._
THE NUMBERS APPEARING IN THE COLUMNS ENTITLED'FORM NUMBER" AND'PARAGRAPH NUMBER" IDENTIFY THE OBJECT
DEFINITIONS ENDORSEMENT AND PARAGRAPH NUMBER WHICH APPLY TO THE DESCRIPTION OF OBJECT OPPOSITE THE FORM AND
PARAGRAPH NUMBERS FOR THE CORRESPONDING LOCATION THAT IS SHOWN.
INSURANCE IS PROVIDED ONLY FOR THE OBJECTS DESCRIBED BELOW.
FORM PARAGRAPH
NUMBER NUMBER DESCRIPTION OF OBJECT COVERAGE
j 1
I
i
I I
i I
i I
I
G -124576-A
,ED. 02196)
111.1-21-2000 + 99.': P. 0.3
P. 'a
Fo
U the Gommitmenls rou Make`
PO
Y NUMB&R f COVERAGE PROVIDED BY I AGENCY
NAMED
INSUF D AND ACORESS
AGENT
POLI
Fro
Y PERIOD: !
To at 12:0f A .M.
Sta
dard Time at your mailing address shown above.
FO
MS AND ENDORSEMENTS:
FORMS AND ENDORSEMENTS APPLICABLE TO THIS COVERAGE PART AND MADE A PART OF THIS
�MO
POLICY AT TIME OF ISSUE:
TGAGEE/LOSS PAYEE
MORTGAGE HOLDER'S NAME AND ADDRESS:
LOSS PAYEE'S NAME AND ADDRESS:
w.._w �
SP
IAL PROVISIONS: •���������� � —~w�
SPECIAL PROVISIONS, IF ANY.
COL
NTERSIGNED BY.
DATE AUTHORIZED AGENT
P Tr _1 ',10 0.4.36rr1 (:NA IrrSUPAru:E
P.11
BOILER AND MACHINERY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAIRIElFIULLY.
Object Definitions No. 6
Comprehensive Coverage including Production Machines
This endorsement modifies insurance provided under the following:
BOILER AND MACHINERY COVERAGE FORM
A. 'Object" means any:
1. Boiler; fired vessel, unfired vessel normally
subject to vacuum or internal pressure other
thanwee ht of its contents, refrigerating and
air conditioning vessels, and any metal
piping and its accessory equipment;
2. Mechanical or electrical machine or appa-
ratus used for the generation, transmission
or utilization of mechanical or electrical
power.
3. Any of the following vessels listed below are
included within the provisions of this section
when used, with an "object':
a. Condensate return tank;
b. Cushion or expansion tank used with a
hot water heating boiler.
S. "Object" does not mean any:
1. Part of a boiler, fired vessel or electric steam
generator that does not contain steam or
water;
2. Insulating or refractory material;
3. Non-metallic vessel. unless it is constructed
and used in accordance with the American
Society of Mechanical Engineers Code;
(A.S.M.E.)
4. Catalyst,
S. Buried vessel or piping:
6. Sewer piping, piping forming a part of a fire
protection or water piping other than:
a. Feed water piping between any boiler
and its feed pump or injector; or
b. Boiler condensate return piping; or
c. Water piping forming a part of ref-iger-
ating and air conditioning vessels and
piping used for cooling, humidifying or
space heating purposes;
T. Part cf a vessel that is not under.
a. Pressure of the contents of the vessel;
or
b. Internal vacuum;
S. Oven, stove, furnace, incinerator, pot, or
kiln;
S. Structure, foundation cabinet or compart-
ment containing the object;
10. Power shovel, dragline excavator, vehicle.
aircraft, floating vesse4 or structure, pen-
stock, draft tube or well -casing;
11. Conveyor, cane, elevator, escalate or
hoist, but not excluding any electrical ma-
chine or electrical apparatus mounted -on or
used with this equipment;
12. Electronic computer or electronic data proc-
essing equipment unless used to operate
one or more insured objects;
13. Media used with any electronic computer or
electronic data processing equipment
14. Machine or apparatus that is used for re-
search, medical, diagnostic, surgical, dental
or pathological purposes;
16. Felt, wire, screen, die, extrusion plate, swing
hammer, grinding disc, cutting blade, cable,
chain, belt, rope, clutch plate, brake pad,
non-metallic part. or any part or tool subject
to frequent periodic replacement;
1S. "Object" manufactured by you for sale.
C. For any boiler or fired vessel, the furnace of the
"object" and the gas passages from there to the
atmosphere will be considered as outside the
"object".
SM 00 31 02 91 Copyright, Insurance Services Office, Inc., 1990, 1991 Page 1 of 2
Opt:3EPr•? GiF Ir+S;�FHr;�.= x.12
l 3
0. When a vessel uses a heat transfer medium
other than water or steam we will consider
the medium or its vapor as substitutes for
the words—grater or steam.
E. We will consider that the - connected ready
for use - requirement of the Coverage Form
and its endorsements has been met by any
'object' in this section if that "object" is:
I . Periodically filled, moved, emptied and
refilled in the course of its- normal serv-
ice and
2.. Used for storage of gas or liquid.
F. For arjy gas turbine "Accident" does not in-
clude the cracking of any part of the object
exposed to the products of combustion.
BM 00 3102 91
G. We will not pay for loss or damage to any
Catalyst.
H- We wall not pay for.
i. Damage to media used with any elec-
tronic computer or electronic data prod
essing equipment; or
2. Any indirect loss resulting fmm damage
to that media.
1. For any "object" covered by this endorse-
ment, Paragraph F.1.e. of the definition of
'accident" in the BOILER AND MACHINERY
COVERAGE FORM is replaced by the fol-
lowing:
Breakdown of any electronic computer or
electronic data processing equipment un-
less used to operate one or more insured
objects.
Copyright. Insurance Services Offce, Inc.. 1990, 1991 Page 2 of 2
',�o Opt:;;=r1 :r,A Iri.UFk1(:E
BOILER AND MACHINERY COVERAGE FORM
variouprgviskm in this policy resbid coverage.
Read ti"
e entire polity carefully to determine rights,
duties nd What is and is not covered.
Throu out. this policy the words "you" and "your"
refer t the Named Insured shown in the declara-
tions. he aids 'Ve," "us" and "our" fefer to the
Compa iy poviding this insurance.
Otherordf and phrases that appear in quotation
marks av special meaning. Refer to Section F. -
DEFINJT10111115.1
A. CCNEMGE
Wej will pay for direct damage to Covered Prop -
e ca ed by a Covered Cause of Loss.
1. ; Colored Property
Co red Property, as used in this Coverage
ParrTmeens any property that
a. 'You own; or
b. Js in your care, custody or control and
ltor which you are legally liable. In add! -
lion to paying for loss to this property.
we will defend you against any claim or
"Suit" alleging Lability for damage to this
;'Property, subject to the Defense and the
;Supplementary Payments provisions
2. Co4ered Cause of Loss
I A Livered Cause of Loss is an "accident" to
' an .obiect" shown in the Declarations. An
"ob ct must be in use or connected ready
for Ise at the location specified for it at the
time of the "accident".
3. C019rage Extensions
a. lExpediting Expenses
With respect to your damaged Covered
i Property. we will pay the reasonable
f extra cost to:
(1) Make temporary repairs;
12) Expedite permanent repairs; and
.(3) Expedite permanent replacement
We restrict the amount payable for Ex-
pedhing expenses as explained in the
' Limits of Insurance section of this Cov-
erage Form
P.13
b. Automatic Coverage for A Newly Ac-
quired Location
We will automatically cin W an "acci-
dent" to an ',object' at a newly acquired
location. This automatic coverage be-
gins at the time you acquire " gamey
and continues for fife *Ws, wrtdw ' he
following corxfiU s:
(1) You must inform us, in writing, of tt"
newly acquired location within 90 ,
days of the date you acquire it
(2) The "object" must be in use or con-
nected ready for use at the time of
acquisition and throughout the pe-
riod of automatic coverage and be
of a type that would be included in
any 'Object" Group Description
shown in the Declarations;
(3) The Limit of Insurance and Deducti-
ble amount will be the h'�ghest
amounts shown in the Declara3ions
for the same type of "objecf?
(4) We will not be liable under this cov-
erage for Consequential Damage,
Business Interruption, or any-` other
indirect loss resulting from an"acci-
dent- to an "object"; and
(S) You agree to pay an additional pre-
mium as determined by us.
c. Defense
If a claim or "suit" is brought against you
alleging that ou are liable for damage
to property that in your care cus-
tody or control, that was directly caused
by an "accident" to an "object," we will,
ether.
(1) Settle the claim or "suit"; or
(2) Defend you against the claim or
"suit," but keep for ourselves the
right to settle it at any point.
d. Supplementary Payments
We will pay, with respect to any claim or
"suit" we defend:
(1) All expenses we incur.
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(2) The cost of bonds to release at-
b. Warlike action by a military force. in-
tachments, but only for bond
cluding action in hindering or defending
amounts within the Limit of Insur-
against an actual or expected attack. by
ance. We do not have to furnish
any government, sovereign or other
these bonds,
authority using nutitary personnel or
(3) All reasonable expenses incurred by
other agents; or
you at our request to assist us in the
c. Insurrection, rebellion, revolution
investigation or defense of the daim
usurped power or action taken by qw-
or suit," including actual loss of
ermmantal authorittr In hbviering or de -
earnings up to 5100 a day because
t<eod cog agaLlst any of mese
of Erne off from work,
4. Other Exclusions
(d) All costs taxed against you in any
"Suit' we defend;
Loss caused by or resulting from:
(5) Pre judgment interest awarded
a, An explosion. However, we will pay. for
loss caused by or resulting from an ex-
; against you on that part of the
Judgment we pay. If we make art
plosion of an "object" of a kind described
"objets"
offer to pay the applicable Limit of
below and only to covered by
this an and as described on an
Insurance, will not pay any pre-
Object Definitions endorsement:
jud merit interest based an that pe-
o
riod of time after the offer: and
Explosion of any:
(6) All interest on the full amount of any
(1) Steam boiler,
judgment that accrues after entry of
(2) Electric steam generator;
the judgment and before we have
(3) Steam piping;
paid, offered to pay, or deposited in
(4) Steam turbine;
court the part of the judgment that is
(5) Steam engine:
within the Limit of Insurance shown
(6i Gas turbine; or
in the Declarations.
(7) Moving or rotating machinery
These payments will not reduce the
caused by centrifugal force or
Limit of Insurance.
mechanical breakdown.
B. EXCLUSIONS
b. Fire or explosion that occurs at the
We will not pay for
same time as an "accident' or that en -
1. Ordinance or Law
sues from an "accident'. With respect to
any electrical equipment forming a part
Any increase in loss caused by or resulting
of an "object", this exclusion is changed
.from the enforcement of any ordinance, law,
to read:
regulation, rule or ruling regulation or re-
stricting repair, replacement, alternation,
explosion "object'
l
"ac-
the
operation, construction or installation.
As used here increase in loss also includes
that occursex
same time as an
cident' or ensues from an "accident".
expenses incurred beyond those for which
c. Explosion of gas or unconsumed fuel
we would nave paid if no substance de-
within the fumace of any boiler or fired
clared to be hazardous to health by a gov-
vessel or within the passages from that
ernmental agency had been involved in the
furnace to the atmosphere, whether or
"accident".
not the explosion is:
2. Nuclear Hazard
(1) Contributed to or aggravated by an
Loss caused by. or resulting from nuclear re-
"accident" to any part of an "object"
action or radiation, or radioactive contami-
that contains steam or water; or
nation, however caused.
(2) Caused in whole or in part directly
3. War and Military Action
or indirectly, by an "accident" to an
Loss caused by or resulting from:
"object" or part of an "object".
a. War, including undeclared or civil war,
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d, An "accident' that is the direct or incirect
result of an explosion or fire;
e. Water or other means used to extin-
guish a fire, even when the attempt is
unsuccessM
f. Lightri tQ. if coverage for that cme of
loss is provided by another ooticy of in-
surance you Crave;
g. Flood. However. if an "accident" results
from a flood, we will pay for direct dam-
age to Covered Property caused by the
"accident;
h. An "accident to any "object" while being
tested;
I. Ari ` "accident" caused directly or indi-
rectly by earth movement, including but
not limited to earthquake, landslide,
mudslide, subsidence or volcanic erup-
tion;
J. Lack of power, light, heat, steam or re-
frigeration,
k. A delay in, or an interruption of, any
business, manufacturing or processing
activity; or
I. Any other indirect result of an "accident"
to an "object".
We will not pay for any loss excluded above
even though any other cause or event contrib-
utes concurrently or in any sequence to the loss.
C. LIMITS OF INSURANCE
1. We will not pay more than the applicable
Limit of Insurance shown in the Declarations
for all direct damage to Covered Property
that results from any "one accident".
2. The following coverage limitations to our
payment for direct damage to Covered
Property are part of and not in addition to
the Limit of Insurance for this Coverage
Form.
a. Expediting Expenses
Our payment for Expediting Expenses
will be limited to:
(1) $5,000; or
(2) What is left of the Limit of Insurance
after we pay your loss for Covered
Property damaged by an "accident";
whichever is less.
P.,=
b. Hazardous Substance Limitation
The following applies despite the opera-
tion of the 0irdinance or Law Exclusion.
Tttis fmitatbn does not apply !a darn -
age, contamination or paVuben caused
by arrinwia.
If Covered Property is damaged con-
taminated or polluted as a result of an
"accident" to an "object° by a substance
declared to be hazardous to healhh t y a
governmental agency, the most vre will
pay for" additional expenses incurred
by you for clean up, repair or replace-
ment or disposal d that property- is
$5,000. As used here, additional ex-
penses mean expenses incurred be-
yond those for which we would be liable
if no substance hazardous to health had
been involved.
c. Ammonia Contamination Limitation
If Covered Property is contaminated by
ammonia as a result of an "accident to
an "object," the most we will pay for this
kind of damage, including salvage ex-
pense, is 55,000.
d. Water Damage Limitation
If Covered Property is damaged by wa-
ter as a result of an "accidenC to cov-
ered
owered refrigerating or air conditioning
vessels and piping, the most we wilt pay
for this kind of damage, including sal-
vage expense. is $5.000.
Any payment made under Section C will not in-
crease if more than ore insured is shown in the
Declarations.
D. DEDUCTIBLE
We will not pay for loss or damage resulting
from any "one accident" until the amount of loss
or damage exceeds the Deductible shown in the
Declarations. We will then pay the amount of
loss or damage in excess of the Deductible, up
to the applicable Limit of Insurance. if more than
one "object" is involved in "one accident," only
the highest Deductible will apply.
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F..E
E. BOILER AND MACHINERY CONDITIONS
b. Insurance Under Two or More Cover.
The following conditions apply in addition to the
age's
Common Policy Conditions:
If two or more of this policy's coverages
1. Lose Conditions
apply to tt* same loss or damage, we
a. Duties In the Event of Loss or Dam-
vn11 not pay more than the actual amount
of the loss or damage subject to the
age
Limit of tnsumnoe.
(1) You must see that the following are
C. Legal Action Against Us
done in the event of Ioss or damage:
No one may bring a legal action against
(a) Give us a prompt notice of the
us under this Coverage Part unless:
loss or damage. Include a de-
scription of the • property in-
(1) There has been fu(I compliance wit
volved
all the terns of this Coverage Part;
(b) As soon as possible, give us a
description of how, when and
and
(2) years
a date
where the loss or damage oa
aThlteere of thet"ta+ccident2";
curred.
(3) We agree in writing that- you have
(c) Allow us a reasonable time and
an obligation to pay for damage to
opportunity to examine the
Covered Property of others or until
property and premises before
repairs are undertaken or ph si-
the amount of that obligation has
been determined by final judgment
cal evidence of the "accident" is
or arbitration award. No one has the
removed. But you must take
whatever measures are neces-
right under this policy to bring us
into an action to determine your It-
sary for protection from further
ability.
damage.
d. Loss Payable Clause
(d) Permit us to inspect the property
(1) We will pay you and the loss payee
and records. Also permit us to
shown in the Declarations for- loss
take samples of damaged prop-
due to an 'accident.' to an "object,
erty for inspection, testing and
as interests may appear. The insur-
analysis.
ante covers the Interest of the loss
(e) If requested, permit us to ques-
payee unless the loss results from
tion you under oath, at such
conversion, secretion or embezzle-
times as may be reasonably re-
ment on our art.
Y P
quired about any matter relating
(2) We may cancel the policy as al-
to this insurance or your claim,
lowed by the Cancellation Condition
including your books and rec-
Cancellation ends this agreement as
ords. In such event, your an-
to the loss payee's interest
swers must be signed.
If we cancel we will mail you and the
(f) Send us a signed, sworn state-
loss payee the same advance no-
ment of loss containing the in-
Lice.
formation we request to settle
the claim. You must do this
(3) If we make any payment to the loss
within 60 days after our request
payee. we will obtain their rights
against any other party.
(g) Cooperate with us in the inves-
e. Other Insurance
tigahon or settlement of the
claim.
(1) You may have other insurance
(2) We may examine any insured under
subject to the same plan, terms,
conditions and provisions as the in-
oath, while not in the presence of
any other insured and at such times
surance under this Coverage Part. If
as may be reasonably required
you do, we will pay our share of the
covered loss or damage. Our share
about any matter relating to this in-
surance or the claim, including an
is the proportion that the applicable
insured's books and records. In the
Limit of Insurance under this Cover-
age Part bears to the Limits of 1n -
event of an examination. an. in-
sider's answers must be signed.
surance of all insurance covering on
the same basis.
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(2) If there is other insurance covering
The repair parts or replacement
the same loss or damage, other
"object' must be:
than that described in (1) above, we
will pay only the amount of covered
(c) Of Gke kind, capacity, size and
b.
loss or damage in excess of the
quality; and
amount due kora that ocher incur-
(d) Used for the same purpose,
ance, whether you can collect on it
(3) We will nota
p y y°�'
or not
In no case will we more than the
Pay
{a) If the toss or damage is to prop -
erty first is obsolete or useless
applicable Limit of Insurance.
to you; or
f. Transfer of 116ghts of Recovery
Against Others To tis .
fb) For any extra coat if you decide
to repair or replace ate darn -
If any person or organization to or for
aged property with property of a
whom we maKe payment under this
better kind or quality or of larger
Cpverage Part has rights to recover
capacity.
damages from another. those rights are
(4) H you do not repair or replace the
transferred to us to the extent of our
payment. That person or organization
damaged property within 18 months
after the date of the "accident," then
must do everything necessary to secure
we will pay only the smaller of the:
our rights and must do nothing after a
loss to impair them.
(a) Cost it would have taken to re-
g. Valuation
pair, or
(1) We will pay you the amount you
(b) Actual cash value;
spend to repair or replace your
at the time of the "accident.
property directly damaged by an
Paragraph (4) does not apply to any
accident" Our payment will be the
time period beyond the 18 months
smallest of:
that we agree to in writing.
(a) The Limit of Insurance;
2. General Conditions
(b) The cost at the Erne of the "ac-
a. Additional insured
cident" to repair the damaged
property with property of like
If a person or organization is designated
kind, capacity, size and quality;
in this Coverage Part as an additional
g
insured, we will consider them to be an
(c) The cost at the time of the "ac-
insured under this Coverage Part to the
cadent" to replace the damaged
extent of their interest
property on the same site with
b. Bankruptcy
other
other property:
Of like kind, capacity, size
bankruptcy or insolvency of you or
your estate will not relieve us of an obli-
and quality; and
q ty�
gation under this Coverage Part
(II) Used for the same purpose;
c. Object Group
(d) The amount you actually. spend
that is necessary to repair or re-
All 'objects" in use or connected ready
place the damaged property.
for use and included in an "Object"
Group Definition will be considered as
(2) As respects any "object" if the cost
individually described in the Declara-
of repairing or replacing only a part.
tions. The premiums for 'objects" in -
of the object is greater than:
cluded in an "Object" Group Description
(a) The cast of repairing the 'ob.
will be adjusted as follows:
jecr; or
(1) We will base the initial premium for
(b) The cost'of replacing the entire
these 'objects" on information we
'object' on the same site;
obtain. The rates charged will be
we will pay only the smaller of (a) or
overag effect on the first day of
ga
(b).
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'(2) We will cnarge an additional pre-
mium for "objects" that are added to
the policy after the effective date of
this policy. The additional premium
for these "objects" w0l bre computed
pro rata.
(3) We will allow a return premium for
"objects" that are removed from the
policy after the effective dtale of the
policy. The returnemium wM the
computed pro rata 4mm the time the
"objects" are disconnected.
.d.' Policy Period, Coverage Territory
Under this Coverage Part
(1)1,:The "accident' must occur
(a) During the Policy Period shown
in the Declarations; and
(b) Within the coverage territory.
(2) The coverage territory is:
(a) The United States of America:
and
(b) Puerto Rico.
e. Concealment, Misrepresentation or
Fraud
This Coverage Part is void in any case
of fraud by you relating to it. It is also
void if you intentionally conceal or mis-
represent a material fad concerning:
1. This Coverage Part.
2. The Covered Property: or
3. Your interest in the Covered Prop-
erty.
f. Suspenslon
Whenever an "object' is found to be in,
or exposed to, a dangerous condition,
any of our representatives may immedi-
ately suspend the insurance against
loss from an "accident° to that "object"
This can be done by delivering or mail-
ing a written notice of suspersion to:
(1) Your last known address; or
(2) The address where the 'object" is
located.
Once suspended in this way, your in-
surance can be reinstated only by an
endorsement for that "object".
If we suspend your insurance, you will
pet a pro rata refund of premium for that
object" But the suspension will be ef-
fective even if we have not yet made or
offered a refuna.
F.:9
F. DEFINITIONS
I. "Accident" means a sudden and accidental
breakdown of the "object° or a part of the
"object At fire time the breakdown occurs, it
most frrarlrfest itself by physical damage to
the "object" that necessitates repair or re-
placement
Monet t V* kglowkV is an 'accident:
a. Depletion, deterioration, corrosion or
erosion;
b. Wear and tear,
c. Leakage at any valve, fitting, shaft seat,
g and packing, joint or connection;
d. Breakdown of any vacuum tube, gas
tube or brush:
e. Breakdown of .arty electronic con"r
or electronic data processing equip-
ments
f. Breakdown of any structure or founda-
tion supporting the "object or any of its
parts; or
g. The functioning of any safety or protec-
tive
roteative device.
Turbine Units may have a separate defini-
tion of "accident". If so, refer to the Declara-
tions for the appropriate accident definition.
If a strike, riot. civil commotion, act of sabo-
tage or vandalism results in an "accident",
this insurance applies. However the War
and Military Action Exclusion and the condi-
tions of this Coverage Part still apply.
2. "Object" means the equipment shown in
the Declarations. Full description of specific
"ob*X categories are found in the Object
Defindions endorsement attached to this
Coverage Form.
3. "One Accident" means:
If an initial "accident" causes other "acci-
dents" all will be considered "one accident".
All "accidents" at any one location that
manifest themselves at the same time and
are the result, of the same cause will be con-
sidered "one accident".
4. "Suit" means a civil proceeding and in-
cludes:
a. An arbitration proceeding in which dam-
ages are claimed and to which you must
submit or do submit with our consent; or
b. Any other alternative dispute resolution
proceeding in which damages are
claimed and to which you submit with
our consent.
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For Ale ilre Coenfioe»hs yisu AgawBOILER AND MACHINERY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
BOILER AND MACHINERY EXTENSION ENDORSEMENT
This endorsement modifies insurance provided under the following:
BOILER AND MACHINERY COVERAGE PART
A. ADDITIONAL COVERAGE EXTENSIONS
The following coverages are added to Section
A.3.. Coverage Extensions. Payments under
these Additional Coverage Extensions are part
of, and not in addition to, the Limit of insurance
that appiies to the Boiler and Machinery Cover-
age Form. The Ordinance or Law exclusion in
Section B.I. of the Boiler and Machinery Cover-
age Form does not apply to the insurance spe-
cifically provided under these Additional Cover-
age Extensions.
1.. CFC Refrigerants and Halon
a. If repair or replacement of damage to
Covered Property caused by an 'acci-
dent" to an 'object" necessitates the re-
placement of
(1) Any CFC (chlorofluorocarbon) re-
frigerant used in refrigeration or air
conditioning equipment; or
(2) Halon used in a fire suppression
system;
the insurance provided under this Cov-
erage Form is extended as described in
provisions b. and c. below.
b. If the CFC refrigerant or halon is re-
placeable, the Valuation Loss Condition
is amended as follows:
0-) You may, at your option, elect to:
(a) Repair or replace the damaged
refrigeration equipment, air con-
ditioning equipment or fire sup-
pression s stem and replace the
lost CrC refrigerant or
G-124508-13
(ED 07198)
halon, in accordance with the
Valuation Loss Condition; or
f1b) Change the refrigeration equip-
ment, air conditioning equip-
ment or fire suppression sys-
tm through modification or re-
placement, to:
Refrigeration or air condi-
tioning equipment that uses
an approved non -CFE re-
fdgerart; or
A fire suppression system
that uses an approved non -
halon agent.
But this option is available only
if the change to the equipment
or system is made within 18
months after the date of the 'ac-
cident" or within any extended
time period that we agree to in
writing.
(2) If option (1) (b) above is elected, we
will not pay more than the least of
the following amounts:
(a) The Limit of insurance;
(b) The cost at the time of the "ac-
cident" to repair the damaged
refrigeration equipment, air con-
ditioning equipment or fire sup-
pression system, retrofit the
equipment or system to accept
an approved non -CFC refriger.
ant
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Page 1 of 4
or non -halon lire suppressant,
and charge the equipment or
system with that refrigerant or
fire suppressant;
(0 The cost at the time of She 'ac-
cident" to replace the damaged
refrigeratton equipment, air con-
difiorong equipment or Are sup-
pression system with equipment
or a system that is functionally
• equivalent and uses an ap-
proved non -CFC ,refrigerant or
non -halon fire suppressarti;
(d) The amount you actually spend
that is necessary to change the
refrigeration equipment, air con-
ditioning equipment or fire sup-
pression system, through modi-
fication or replacertient to
equipment or a system that
uses an approved non -CFC re-
frigerant or non -halon fire sup-
pressant; or
(e) 125% of the amount we other-
wise would have paid for loss to
the refrigeration equipment, air
conditioning equipment or fire
suppression system.
c. If the.CFC refrigerant or halon Is not re-
placeable, the Valuation Loss Condition
Is amended as follows:
(1) If you repair oi� replace the damaged
equipment within 18 months after
the date of the `accident° or within
any extended time period that we
agree to in writing, we will pay the
least of the following amounts:
(a) The Limit of Insurance;
(b) The cost at the time of the 'ac-
cident' to repair the damaged
refrigeration equipment, air con-
ditioning equipment or fire sup-
pression system, retrofit the
equipment or system to accept
an approved non -CFC refriger-
ant or non -halon fire suppres-
sant and charge the equipment
or system with that refrigerant or
fire suppressant;
G-124508-8
(ED. 07198)
(c) The cast at the time of the "ac-
cident" to replace the darlaged
refrigeration equipment, air con-
ditioning equipment or fire sup-
pression system with equipment
or a system that is functionally
equivalent and uses an ap-
proved non -CFC refrigerant or
non -halon fire suppressant; or
(d) The amount you achaiifj► spm
that is necessary to change the
refrigeration ecuipment, air con-
ditioning equipment or ire sup-
pression system, through modi-
fication or replacement, to
equipment or a system that
uses an approved non -CFC re-
frigerant or non -halon rite sup-
pressant.
(2) If you do not repair or replace the
damaged equipment within 18
months after the date of the "acci-
dent" or within any extended time
period that we agree to in writing.
we will not pay more than the lesser
of:
(a) The amount we would have paid
if repair or replacement of the
damaged equipment had been
made, as determined in 'c.(1)
above; or
(b) The actual cash value of the
damaged equipment at the time
of the'accident".
2. Ordinance or law
If an "accident" to an "object" at your location
damages a building that is Covered Prop-
erty, we wilt pay for.
a. Loss to the Undamaged Portion of
the Building, meaning loss to the un-
damaged porton of the building caused
byenforcement of any ordinance or law
that
(1) Requires the demolition of parts of
the same building not damaged by
the "accident" to an "object"; or
(2) Regulates the construction or repair
of buildings, of establishes zoning or
laId use requirements at the loca-
tion of the building.
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Page 2 of 4
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111 Zi '0c 04:40Pri ':ref= Ir+-i-PPICr
S
b. Pernolition Cost, meaning the cost to
femolish and clear the site of undam-
ged parts of the building, caused by
riforcement of building, zoning, or ►arid
rise ordinance or iew.
c. Jncreased Cost of Construction:
meaning the Increased cost to:
(1) Repair or reconstruct damaged pori
tions of the building; and
{2) Reconstruct or remodel indamaged
portions of the building, whether or
not demolition is required.
when the increased cost is a conse-
Quence of enforcement of building,
Wing or land use ordinance or law. But
we will only pay for this increased cost if
the building is repaired, reconstructed or
Fl
modeled. Also, if the building is re -
aired. reconstructed or remodeled, it
ust be intended for similar occupancy
Ps the current building, unless such oc-
cupancy is not permitted by zoning or
land use ordinance or law.
nce under this Coverage Extension
f
s only with respect toan ordinance or
at is in force at the time of the "acci-
to an 'object'. Insurance under this
age Extension does not apply to:
Costs associated with the enforcement
Of any ordinance or law which requires
ieny insured or others to test for, moni-
lor, dean up, remove, contain, treat,
09toxify or neutralize, or in any way re-
spond to, or assess the effects of sub-
tances declared to be hazardous to
ealth by a governmental agency; or
;b. loss due to any ordinance or law that:
{1) You were required to comply with
before the "accident to an "object",
even if the building was undam-
aged; and
(2) You failed to comply with.
Un*r this Coverage Extension, the most we
;will pay as a result of any one "accident' for.
,a. Loss to the. Undamaged Portion of the
Puilding is included in the Limit of Insur
nce that otherwise applies to the dam-
ged building. But in no event will the
mount we pay for loss to the building,
Including the loss in value of
P.2+_
the undamaged portion of the building
due to enforcement of an ordinance or
law to which this coverage applies, ex-
ceed:
(1) The amount you actually spend to
repair, rebuild or replace the build-
ing, but not more than the amount it
would cost to restore the building an
the same premises and to the same
height, floor area. style and conVa-
rabie quality of the original property
insured; or
(2) The actual cash value of ate 1QuW-
ing at the Sme of loss if We Ilu"
is not repaired or replaced.
b. Demolition Cost and Increased Cost of
Construction is $500,000, subject to the
following:
(1) With respect to the coverage pro-
vided for Demolition Cost, we will
not pay more than the amount you
actually spend to demolish and clear
the site of the undamaged parts of
the building;
(2) With respect to the coverage pro-
vided for Increased Cost of Con-
struction:
(a) We will not pay for the- In-
creased Cost of Construcbm
' Until the building is actually
repaired or replaced at the
same or another premises;
and
Unless the repairs or re-
placement are made as
soon as reasonably possi-
ble after the loss or dam-
age. not to exceed 18
months. We may extend
this period in writing during
the 18 months.
(b) If the building is repaired or re-
placed at the same location, or if
you elect to rebuild at another
location, the most we will pay for
the increased cost of construc-
tion is the increased cost of
construction at the same loca-
bon.
(c) If the ordinance or law requires
relocation to another location,
the most we will pay for the in-
creased cost of construction is
Ancludes copyrighted material of Insurance Services Office, Inc., used with its permission.
G-124 84i Page 3 of 4
(ED. 0198)'
I
JUFi—�? —2000
71Ji 21 120 04:40Pr1 Clip Irisuppr+cc
P.22
Includes copyrighted material of Insurance Services Office, Inc., used with its permission.
G-1245108-13 Page 4 of 4
(ED 0*98)
7UH-21-2000 17 .22
the increased cost of construc-
Object Definition No. 5 - Comprehensive
tion at the new location.
Coverage (Excluding Production Machines);
B.
EX LU IONS
or
Se tion .4.h., Exclusions, is replaced wdh the
Object Definition No. 6 - Comprehensive
fall wino:
Coverage (Induding Pion Machines);
An ac*enr to:
Hmfbillowing changes apply to Spon P. DEFf-
a. ; Any. boiler, fired vessel or electrical steam
a
ge�rator while undergoing, hydrostatic.
1. The definition of "accident" in paragraph 1
is extended to include a sudden and ara-
acci-
pn uratic or gas pressure ung; or
dentalof electronic computer or
b. Any; electrical or electronic equipment while
dre mown
ment
i un rgoing insulation breakdown testing. .
vision 1.e.. which excludes the breaMown o
C.
SE�LI PRICE VALUATION ON FINISHED
electronic computer or electronic data proc-
essing ejuipment from the definition
ST C
of an
Un erlettion E.1., Loss Condition g., Valua•accident
,does not apply.
t14, ismended by the addition of the following:
Z. The following is added to the definition of
Lo toi finished stock you manufacture that is
"object" in paragraph 2.:
dirOctly barnaged by an 'accident" will be valued
"Object" also includes electronic computer
at the drice for which the property could have
or electronic data processing equip -
d at the time of the "accident-, less dis-
ment. Under. ' Object Definition
co is nd expenses you otherwise would have
0
No. 5 - Comprehensive Coverage (Ex -
he
cluding Production Machines); and
D.
C E GE TERRITORY EXTENSION
Object Definition No. 6 - Comprehensive
Un er ection E.Z., General Condition d., Pot-
Coverage (Including Production Ma -
chines);
Icy Pe od, Coverage Territory, the coverage
terltory defined in paragraph (2) is amended to
the exclusion of electronic computer or elec-
als inc de Canada.
tropic data processing equipment unless used to
E.
C P HENSIVE COVERAGE — COM-
PU ER GUIPMENT EXTENSION
operate one or more insured objects. does not
apply'
ng�then of the following Object Definition
en ors�ments apply:
Includes copyrighted material of Insurance Services Office, Inc., used with its permission.
G-1245108-13 Page 4 of 4
(ED 0*98)
7UH-21-2000 17 .22
TIJI 21 '010 04:41OPM :NF1 .NELPF41 -
VA!A--
For A11 the Comniitmenfs bora I114"`
P.2'
BOILER AND MACHINERY
THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY
DEDUCTIBLE
r:
This endorsement modifies insurance provided under the following:
BOILER AND MACHINERY COVERAGE FORM
SCHEDULE'
When the 'object" (s) shown below is (are) involved in an'accident". the deductible shown below for that `object"
replaces the deductible shown in the Boiler and Machinery Declarations Page.
Description of Object Deductible Amount
. S
S
S
S
S-
S
G -124588-A
(ED. 02/98)
iU,
Jure ?i '-'1.0 04:41PM Cry Ira=UPPru._ P.
POLICY NUMBER: BOILER AND MACHINERY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ACTUAL CASH VALUE
This endorsement modifies insurance provided under the following:
BOILER AND MACHINERY COVERAGE FORM
SCHEDULE*
Location(s)
"Objects"
The Valuation Condition of the Boiler and Machinery Coverage Form is replaced by the following for any "objects"
entered in the Schedule above:
We will pay you the actual cash value of your Covered Property directly damaged by the "accident." If damaged
property can be restored by the replacement of any part or parts we will pay only the lesser of:
1. The reasonable cost of the restoration; or
2. The actual cash value of the damaged property.
The valuation of Covered Property will be as of the time of "accident".
Information required to complete :his schedule, if not shown on this endorsement, will be shown in the Declara-
tions.
BM 99 28 09 88 Copyright, Insurance Services Office, Inc., 1984, 1988
112 1-21-2000 ?^ 3^ 99.; P.
J1J 121 ' e"D 0.3 : 41 Fr•l :.Pip ii i�i�FE i iC
CIVA
For All the Commitments You Make'
r.?6
THIS ENDORSEMENT IS ADDED TO THE POLICY. PLEASE READ IT CAREFULLY.—-
EXCLUSION
AREFULLY._-EXCLUSION OF COVERAGE FOR DATE -RELATED COSTS
This endorsernent modifies insurance provided under the following:
BOILER AND MACHINERY COVERAGE PART
COMMERCIAL CRIME COVERAGE PART
COMMERCIAL INLAND MARINE COVERAGE PART
COMMERCIAL PROPERTY COVERAGE PART
STANDARD PROPERTY POLICY
A. We will not pay any costs or expenses you or
others directly or indirectly incur to:
1. Assess, design. identify, ins ect, install,
maintain, modify, monitor, rectify. repair, re-
place, reprogram or test any equipment
systems, software, or any components
thereof, as described in Section B. of this
endorsement
a. Because of the manner which such
equipment, systems, software, or any
-components thereof recognize. interpret,
process or differentiate dates or times,
or are unable to recognize, interpret,
process or differentiate dates or times:
or C.
b. In anticipation of the manner in which
such equipment systems, software, or
any components thereof may recognize,
interpret, process or differentiate dates
or times. or may be unable to recognize,
interpret, process or differentiate dates
or times; or
2. Obtain advice or consultation with respect to
A.1, above.
Without limiting the breadth or scope of the fore-
going, one example of the type of cost or ex-
pense , excluded hereunder is any cost or ex-
pense to modify or test equipment, systems,
software, or any components thereof, because
of the manner in which they recognize, interpret,
process or differentiate, dates or times as a con-
sequence of the date change from 1999 to 2000.
B. Equipment, systems, software, or any compo-
nents thereof include, but are not limited to, the
following, whether belonging to any insured or to
others:
1. Computer hardware;
2. Computer software;
3. Computer firmware meaning computer pro-
grams contained in a hardware device as a
read-only memory;
G -129948-A (Ed. 03198)
4. � operating systems and related
S. Computer ;
C Microprocessors or micro chips, whether or
not part of any computer or computerized
system,-
7.
ystem;7. Any other computerized or electronic
equipment, components or circuitry; or
8. Any other products, equipment, services,
data or functions that directly or indirectly in-
corporate, use or rely upon. in any manner,
any of the items listed in paragraph B.1.
through 8.7. above.
With respect to any insurance provided for loss
of Business Income or Extra Expense, we will
not pay for any loss or expense directly or indi-
rectly incurred due to the period of time required
to:
1. Assess, design, identify, inspect, install,
maintain, modify, monitor, rectify, repair, re-
place, reprogram or test any equipment,
systems, software, or any components
thereof, as described in Section B. of this
endorsement:
a. Because of the manner which such
equipment, systems, software, or any
components thereof recognize, interpret,
process or differentiate dates or times,
or are unable to recognize, interpret,
process or differentiate dates or tines;
or
b. In anticipation of the manner in which
such equipment. systems, software, or
any components :hereof may recognize,
interpret, process or differentiate dates
or times, or may be unable to recognize,
interpret, process or differentiate dates
or times; or
2. Obtain advice or consultation with respect to
C.1 above
JUr1-21-201010 17�" 9'g% P.
t %
CNA COMmERC/AL /NSUR.4NCE
4212 Rghlander Orange, rexas 77630 BxAlvdfoias
R"bra r eoa w 6 hetchinery speciate!
Telephone 409-792-4354
Facskrd* 409.792-0461
Pager 600-724-=4
PIN No. 93511329
lntemet NKC20swb"
January 5,72000
Mr. Jay Wadsworth, Electric Utilities Division
CITY OF LUBBOCK
P.Q. Box 2400
Lubbock, Texas 79457
Re: CO -Gen Unit / Gas Turbine Engine / Generator Dif icutties
Dear Jay:
In regard to our phone conversation this morning, l bane several dwughts coming some of the
problems that you recently encountered which stand in the way of bringing y0tw co-generatkm project
to an acceptable conclusion. I hope the following discussion will provide some useful information to
assist you.
As you indicated during several recent test runs the equipment would not produce more than 4.5 to
5.0 megawatts. On another test run you indicated a natural gas fuel strainer had froze restricting fuel
pressure and volume which tripped the engine to a fail-safe condition. A pressure drop caused by a
flow restriction at the strainer, produced auto -refrigeration and a further flow restriction. At the original
test nun attempt, it was apparent that the newly installed fuel gas system was not sufficiently cleaned
and caused a film residue build-up on the internals of the gas system, nozzles, and turbine section of
the engine. In another conversation, I questioned you If the power plant had boilers currently
operating and if there was any fuel related problems with them. You Indicated to me, `there were
indeed boilers running with no apparent problems relating to fuel suppir. Additionally, you indicated
that several mechanical methods pine pigs) were used to clean the new fuel gas system including
purging with compressed air at approximately 120 PSI and a high pressure purge for more than
fifteen minutes of natural gas.
With the situation described In the above paragraph, one would conclude that all of the previous
problems have focused on the fuel gas system and its capability to provide a sufficient supply of
clean, particulate free natural gas fuel. Additionally, with no fuel related problems affecting the
operating equipment at the power plant, it is safe to conclude that the newly installed piping is still
fouled and in need of additional cleaning. In my mind chemical cleaning of the newly installed fuel
piping system is really the only way to assure a clean, particulate free situation. An industrial
chemical cleaning company would sample the system interior and custom deliver a chemical and
procedure, which would alleviate any further contaminate In this system. I realize that contractors
involved will have their own opinions of what should be done, however, it is in our interest to know
that the system is dean and will not affect the long tern reliability of this Engine/Generator in years to
come. With this in mind, I am submitting the following recommendation:
Recommendation:
2000/1. Contact an industrial chemical cleaning company to provide interior chemical cleaning on
all supply and fuel related piping to the newly installed gas turbine cogeneration unit. It is
Imperative that documentation be submitted to CNA Insurance at the completion of this
cleaning process before the final eight-day performance load testing and the subsequent
insurance acceptance providing coverage for this object.
Clly of Lubbock
Pago 1
If I may be of any further assistance and service, or if you would Oka to discus any information
related to equipmatt reliability of gas turbine engines, 1 would be happily to do so via telephone, a -ma
or in person.
Sincerely.
t
Bill Nicholas
cc: Mrd Leisa Hutcheson, AIC
Risk Management Coordinator
CITY OF LUBBOCK
P.O. Box 2000
Lubbock, Texas 79457
Mr. Douglas Sanford
Sanford Insurance Agency
P.O. Box 64790
Lubbock, TX 79464-4790
CNA COMMERCIAL /NSURANCE
0 8 MpMa►der OMOM Tares TT030 BU/ Mkholes
Regi "84"r i 8taalabtery Spedalht
Tia 404-79ZO334
FacSasa 409-792-0401
Paler 800.714.3024
FWNQ. 5338323
lntarnet MCC�swee%net
January 10, 2000
Mr. Jay Wadsworth, Electric Utilities Division
CITY OF LUBBOCK
P.O. Box 2000
Lubbock, Texas 79457
Fax 808!775-3528
Re: CO -Gen Unit / Gas Turbine Engine / Generator Difficulties
Dear Jay:
In answer to your question, industry standards for construction, testing and cleaning of Pressure
Piping are outlined in ASME 831.1, an American National Standard. l am referencing my latest
edition of this code, page 5 under section 100.1.2, which applies directly to fuel gas or fuel oil piping.
Additionally, under section 122.10 page 59, under heading temporary ping systimM the
responsibility for cleanup is addressed.
I have Included as attachments to this tetter those pageswhich-are from the 831.1 Piping Code for
your reference.
Additionally, with the unsuccessful attempts of the Gas Turbine Engine to start property to date, it wig
be necessary to amend the single recommendation and add the following.
Recomrnendatlon.•
2000/2. Provide access to the fuel piping, combustion nozzle section, and turbine section of the
Gas Turbine Engine for a complete Soroscope Inspection after load testing Is completed.
OEM factory representatives should be available to assist in this Inspection. Insurance
coverage forthis object Is contingent on the results of this inspection.
If I may be of any further assistance and service, or if you would Ike to call to discuss any information
Delated to equipment relability, construction codes, etc, please feel free to do so.
Sincerely,
Sill Nicholas
CAY ofLLbbmk
Pa" 2 .
cc: Mrs. Leila Hutcheson, AIC
Risk Management Coordlnatcu
CITY OF LUBBOCK
P.O. Box 2000
Lubbock, Texas 79457
8061775-3318
Mr. Douglas Sanford
Sanford Insurance Agency
P.O. Box 64790
Lubbock, TX 794644790
Fax: 8061792-9344
CNA COMMERCIAL /NSURANCE
3730 Highlander Orange, Texas 77830 Bill ilifchola5
r egsMW Bahr d Machinery speciew
rdsphane 809-792-93.58
Fscsii 809-792.0861
GI Phare In oh8r wky Maui
M 826 8380
UteMet NKC00"007k net
April 18, 2000
Mr. Jay Wadsworth, Electric Utilities Division
CITY OF LUBBOCK
P.O. Box 2000
Lubbock, Texas 79457
Re: Policy No. SM1081574441
Sanford Insurance Agency
Dear Jay:
This Is to confirm my visit to the Lubbock Utilities facility on April 10. 2000. The purpose of this visit
was to provide a jurisdictional inspection on the following bolter and to update the Utility Plant
surveys.
• TX 101279 Foster Wheeler water tube power boUer Inspected lnlemany
The tubes, shell, fittings, appurtenances, safety appliances, and all accessible parts were examined
for corrosion, erosion, bulging, leaking, distortion and overheating. The safety valves were scheduled
to be dean, repaired and pressure verified in place before returning the bolter to service. Waterside:
Internal surface conditions indicated a marginal passivation protection film, with no active corrosion
noted. Fireside: No bulges, cracks or tears indicated on tubes or drums. No adverse conditions
observed.
As far as could be determined the object examined was in satisfactory condition and complies with
the Texas Boiler Law.
Plant Survey
On this visit, I met with you and Mr. Nick Nicholas, CNA Attorney working on the New Installed Gas
Turbine blade claim. Additionally. I facilitated additional structure to the Plant Equipment Reliability
system which is going very well at this time, working with David and Dale. Additionally, the future
requirements for the completed PER System will far surpass the current computer ging used and
should -be updated with reasonable current technology. As a suggestion, because of future data file
sizes that will be generated. it would be prudent to back-up data locally with an in-house CD ROM
system.
If i may be of further service, please feel free to call.
Sincerely,
.....
-- —
Bill Nicholas
Lubbock UtllX" / The CNY of Lubbock
Page 2.
_Cc: Sanford Insurance Agency
P.O. Box 64780
Lubbock. TOM 78464