Costa Mesa SD & Environmental Rental LP
This endorsement changes the Memorandum of Coverage. Please read it carefully.
COVERAGE PERIOD: 8/24/2015 through 10/2/2015
MEMBER AGENCY LOSS PAYEE
Costa Mesa Sanitary District Environmental Rental Services, Ltd. 628 West 19th Street Post Office Box 192
Costa Mesa, California 92627 Rockdale, Texas 76567
This endorsement changes the Memorandum of Coverage provided under the following:
Property Coverage
General Issuer: Special District Risk Management Authority – Coverage PPC-SDRMA-2015-16
Coverage Limits: 1) Replacement cost for Scheduled Property
It is hereby agreed that this endorsement is added to the Memorandum of Coverage issued to Costa Mesa Sanitary District by Special District Risk Management Authority (“SDRMA”) adding the following as a Loss Payee:
Environmental Rental Services, Ltd. is named as loss payee with respect to the leased or rented truck or trucks.
This endorsement is a modification of the Insurance Services Office endorsement form number CP 12 18 10 91 and modifies insurance provided as follows:
A. LOSS PAYABLE
For covered property in which both Member/Agency and a Loss Payee shown in the Schedule have an insurable interest, SDRMA,
pursuant and limited to its obligations as outlined in the Memorandum of Coverage, or the insurer identified in the Declaration will:
1. Adjust losses with the Member/Agency; and 2. Subject to any deductible which is the responsibility of the Member/Agency, pay any claim for loss or damage jointly to the
Member/Agency and the Loss Payee, as interests may appear.
B. LENDER’S LOSS PAYABLE
1. The Loss Payee shown in the Schedule is a creditor, including a mortgage holder or trustee, whose interest in Covered Property is
established by such written instruments as:
a. Warehouse receipts;
b. A contract for deed; c. Bills of lading;
d. Financing statements; or
e. Mortgages, deeds of trust or security agreements. 2. For Covered Property in which both the Member/Agency and a Loss Payee have an insurable interest:
a. SDRMA, pursuant and limited to its obligations as outlined in the Memorandum of Coverage, or the insurer identified in the Declaration will pay for covered loss or damage to each Loss Payee in their order of precedence, as interests may appear.
b. The Loss Payee has the right to receive loss payment even if the Loss Payee has started foreclosure or similar action on the
Covered Property. c. If SDRMA or the insurer identified in the Declaration denies the Member/Agency’s claim because of the Member/Agency’s acts or
because the Member/Agency has failed to comply with the terms of the Coverage Part, the Loss Payee will still have the right to
receive loss payment if the Loss Payee:
(1) Pays any premium due under this Coverage Part at our request if the Member/Agency has failed to do so;
(2) Submits a signed, sworn proof of loss within 60 days after receiving notice from SDRMA of the Member/Agency failure to do so; and
(3) Has notified SDRMA of any change in ownership, occupancy or substantial change in risk known to the Loss Payee.
All of the terms of this Coverage Part will then apply directly to the Loss Payee.
d. If SDRMA or the insurer identified in the Declaration pays the Loss Payee for any loss or damage and denies payment to the
Member/Agency because of the Member/Agency’s acts or because the Member/Agency has failed to comply with the terms of this
Coverage Part:
(1) The Loss Payee’s rights will be transferred to SDRMA or the insurer identified in the Declaration to the extent of the amount
SDRMA or the insurer identified in the Declaration pays; and (2) The Loss Payee’s rights to recover the full amount of the Loss Payee’s claim will not be impaired.
At our option, SDRMA, pursuant and limited to its obligations as outlined in the Memorandum of Coverage, or the insurer identified in the Declaration may pay to the Loss Payee the whole principal on the debt plus any accrued interest. In this event, the Member/Agency will pay the Member/Agency remaining debt to SDRMA or the insurer identified in the Declaration.
3. If the SDRMA cancels coverage, SDRMA will give written notice to the Loss Payee at least:
a. Ten (10) days before the effective date of cancellation if SDRMA cancels for the Member/Agency non-payment of premium; or
b. Thirty (30) days before the effective date of cancellation if SDRMA cancels for any other reason. 4. If SDRMA elects not to renew this policy, SDRMA will give written notice to the Loss Payee at least 10 days before the expiration date
of this policy.
C. CONTRACT OF SALE
1. The Loss Payee shown in the Schedule or in the Declaration Page is a person or organization the Member/Agency has entered a
contract with for the sale of Covered Property.
2. For Covered Property in which both the Member/Agency and the Loss Payee have an insurable interest, SDRMA, pursuant and
limited to its obligations as outlined in the Memorandum of Coverage, or the insurer identified in the Declaration will:
a. Adjust losses with the Member/Agency; and
b. Subject to any deductible which is the responsibility of the Member/Agency, pay any claim for loss or damage jointly to the
Member/Agency and the Loss Payee, as interests may appear.
3. The following is added to the OTHER INSURANCE Condition of the PEPIP policy:
For Covered Property that is the subject of a contract of sale, the words “Member/Agency” or “Insured” includes the Loss Payee.
All other terms and conditions remained unchanged.
Coverage provided by this endorsement, under the terms, conditions and exclusions contained in the Memorandum of Coverage issued by
SDRMA to Costa Mesa Sanitary District, shall not be reduced or canceled without thirty (30) days written notice given to the above
named Loss Payee via certified mail.
Effective date of this endorsement is: August 24, 2015
Signed by: Special District Risk Management Authority
Gregory S. Hall Chief Executive Officer