2021-22 - Exhibit_A_Liability_Coverage_AgreementT.800.537.7790
F. 916.231.4111
2021-22 Property/Liability Coverage Documents
Special District Risk Management Authority Rev. 07/01/2021 www.sdrma.org
Liability Coverage Agreement
Exhibit A
Special District Risk Management Authority
Policy No. LCA-SDRMA-2021-22
Liability Coverage Agreement
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Special District Risk Management Authority Fax 916.231.4111 Rev. 07/1/2021 www.sdrma.org
Exhibit A
Liability Coverage Agreement No. LCA-SDRMA-2021-22
Certain words appear in bold face type. They are defined in the
Definitions section of this Liability Coverage Agreement.
Conditioned upon and in consideration of the payment of all
contributions and assessments, in reliance upon the statements in the
Declarations made a part hereof and subject to all of the terms of this
Liability Coverage Agreement, SPECIAL DISTRICT RISK MANAGEMENT
AUTHORITY (hereinafter SDRMA) agrees with the Member identified in
the Declarations as follows:
I. Coverage Agreement SDRMA will pay on behalf of any Covered Party the Ultimate Net Loss
for which such Covered Party becomes legally obligated to pay as
Damages and/or Defense Costs:
Under Coverage A because of Personal Injury or Property Damage due
to an Occurrence
Under Coverage B because of Personal Injury or Property Damage due
to an Auto Accident
Under Coverage C because of Public Officials’ and Employees’ Errors
and Omissions due to a Wrongful Act
Under Coverage D because of Employee Benefits Liability due to
Employee Benefits Acts, Errors and Omissions
Under Coverage E because of Employment Practices Liability due to
Wrongful Employment Practices
or any combination thereof to which this Liability Coverage Agreement
applies.
II. Defense and Defense
Costs
A. SDRMA shall have the right and duty to defend any Suit, through
counsel of its choice, seeking Damages covered by the terms and
conditions of this Liability Coverage Agreement and not otherwise
excluded. As SDRMA is not an insurer, it has no obligation to provide
independent or “Cumis” counsel to a Covered Party in disputed
coverage situations under Civil Code §2860. SDRMA shall also have
the right, but not the duty, to defend any Claim, through counsel of
its choice, seeking Damages covered by the terms and conditions of
this Liability Coverage Agreement and not otherwise excluded.
Therefore, SDRMA does not have a duty to provide legal counsel to
a Covered Party prior to a lawsuit being filed against a Covered
Party. Since SDRMA is not an insurer, it has no obligation to issue a
reservation of rights letter when undertaking a defense of the
Covered Party in cases where coverage does not or may not apply
in whole or in part. Defense Costs of all Covered Parties are
included in the Limit of Liability set forth in the Declarations.
Liability Coverage Agreement
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II. Defense and Defense
Costs, continued
B. When SDRMA assumes the defense of any Suit or Claim:
1. SDRMA will, through counsel of its choice, defend any such Suit
or Claim against the Covered Party even if such Suit or Claim is
groundless, false, or fraudulent, but SDRMA shall have the right
to investigate, defend or settle any Suit or Claim as it may deem
necessary or expedient.
2. SDRMA will pay the following to the extent not covered by any
insurance or risk financing providing coverage to the Covered
Party. Any of the following, if paid by SDRMA, will reduce the
total limits of liability as stated in the Declarations:
a. Premiums on bonds to release attachments for amounts not
exceeding the limit of liability, but SDRMA is not obligated to
apply for or furnish any such bond;
b. Premiums on appeal bonds required by law to appeal any
Suit that SDRMA defends, but SDRMA is not obligated to
apply for or furnish any such bond;
c. All court costs taxed against the Covered Party in any Suit
that SDRMA defends except for attorneys fees or attorneys
expenses awarded or taxed against any Covered Party;
d. Pre-judgment interest awarded against the Covered Party on
that part of the judgment that SDRMA is obligated to pay. If
SDRMA makes an offer to pay the applicable Limit of Liability,
SDRMA will not pay any pre-judgment interest accruing
during any period of time following the offer;
e. All interest that accrues after entry of judgment and before
SDRMA has paid, offered to pay or deposited in court the
part of the judgment that is within SDRMA's applicable Limit
of Liability;
f. All expenses incurred by SDRMA, including Defense Costs;
g. The Covered Party’s reasonable and necessary expenses
incurred with SDRMA's written consent or at SDRMA's
request.
C. SDRMA will not defend any Suit after any applicable Limits of
Liability have been exhausted by payment of judgments,
settlements, Defense Costs, any costs set forth in 2.a-g above, or
any combination thereof.
III. SDRMA’s Limit of
Liability
Regardless of the number of:
A. Covered Parties under this Liability Coverage Agreement;
B. Persons or organizations who sustain injury or damage, or
Liability Coverage Agreement
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III. SDRMA’s Limit of
Liability, continued
C. Claims made or Suits brought on account of Personal Injury,
Property Damage, Public Officials’ and Employees’ Errors and
Omissions, Employee Benefits Acts, Errors and Omissions, or
Wrongful Employment Practices, or any combination thereof;
SDRMA's Liability is limited with respect to:
1. Personal Injury or Property Damage Liability due to an
Occurrence;
2. Personal Injury or Property Damage due to an Auto Accident;
3. Public Officials’ and Employees’ Errors and Omissions, due to a
Wrongful Act;
4. Employee Benefits Liability due to Employee Benefits Acts,
Errors and Omissions, or any combination thereof; and/or
5. Employment Practices Liability, due to Wrongful Employment
Practices
or any combination thereof is as follows:
SDRMA's Liability shall be only for the Ultimate Net Loss but not in
excess of the Ultimate Maximum Loss as specified in the Limits of
Liability section of the Declarations, as the result of any one Occurrence,
Auto Accident, Wrongful Act, Employee Benefits, Acts, Errors or
Omissions or Wrongful Employment Practices or any combination
thereof.
In addition to SDRMA’s limit of liability regardless of number of covered
parties under this liability coverage agreement as set forth above, for
purposes of determining the limit of SDRMA's liability, if this Liability
Coverage Agreement and any coverage part(s) or Liability Coverage
Agreements between a Member and SDRMA apply to the same or
related damages including injury or damages that may have occurred
during a prior Coverage Period for that same Member and that have
continued into this Coverage Period, or any injury or damages based
upon, arising from, or in consequence of the same or related series of
acts, circumstances, situations, transactions, causes or any combination
thereof for that same Member. SDRMA’S Liability shall only be for the
single largest applicable Ultimate Net Loss available under any one of
those coverage part(s) or Liability Coverage Agreement(s) for that same
Member.
For the purpose of determining the limit of SDRMA's liability, all
Damages and Defense Costs arising from Personal Injury or Property
Damage as a result of continuous, repeated, or related exposure to
substantially the same general conditions shall be considered as arising
out of one Occurrence. With respect to any Sexual Abuse or
Molestation Incident(s), all Damages and Defense Costs arising out of
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III. SDRMA’s Limit of
Liability, continued
any one or more Sexual Abuse or Molestation Incident(s) upon or to
any single person at any time shall be deemed one Occurrence.
For purposes of determining SDRMA’s liability, all Damages and Defense
Costs arising from an Auto Accident as a result of continuous, repeated
or related exposure to substantially the same general conditions shall be
considered as arising out of one Auto Accident.
For the purpose of determining the limit of SDRMA's liability, all
Damages and Defense Costs arising from Public Officials and
Employees Errors and Omissions as a result of the continuous,
repeated, or related exposure to substantially the same general
conditions shall be considered as arising out of one Wrongful Act.
For purposes of determining the limit of SDRMA's liability, all Damages
and Defense Costs arising from Employee Benefits Liability as a result of
continuous, repeated or related exposure to substantially the same
general conditions shall be considered as arising out of one Employee
Benefits Act, Error or Omission.
For the purpose of determining the limit of SDRMA's liability, all
Damages and Defense Costs arising from Wrongful Employment
Practices as a result of continuous, repeated or related exposure to
substantially the same general conditions shall be considered as arising
out of one Wrongful Employment Practice.
Public Officials and Employees Errors and Omissions, Employee
Benefits Acts, Errors and Omissions and Wrongful Employment
Practices taking place over more than one coverage period during which
coverage is afforded through SDRMA shall be deemed to have taken
place during the last annual coverage period and only that coverage for
that coverage period applies.
ULTIMATE TOTAL LOSS PER MEMBER:
With respect to Parts A, B, C, D and E above: The total limit of liability
for all Damages and Defense Costs shall not exceed the highest limit of
any applicable coverage regardless of the number of coverages that
apply. Should more than one coverage part apply, the Member
deductible shall not exceed the highest deductible under any applicable
coverage part.
With respect to Coverages A, B, C, D and E above: All limits of liability,
including group limits and sub-limits, are inclusive of Defense Costs.
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III. SDRMA’s Limit of
Liability, continued
ULTIMATE MAXIMUM LIABILITY – ALL COVERED PARTIES
Subject to the limits set forth in the liability coverages set forth under
“Coverages” above:
The maximum limits of liability for all SDRMA Covered Parties due to an
Occurrence, an Auto Accident, a Wrongful Act, an Employee Benefits
Act, Error and Omission and/or Wrongful Employment Act or Practice,
or any combination thereof, shall not exceed $1,000,000 per occurrence
for all Members combined for any loss arising out of Inverse
Condemnation, $5,000,000 for any sexual abuse loss and $7,500,000
per occurrence arising out of a Wildfire loss.
In addition, subject to the foregoing, the maximum limits of liability for
all SDRMA Covered Parties for all Occurrences, Auto Accidents,
Wrongful Acts, Employee Benefits Acts, Error and Omission and/or
Wrongful Employment Acts or Practices, or any combination thereof
shall not exceed the combination of:
(1) SDRMA’s liability for its retentions under its
Reinsurance Agreement with Old Republic Specialty
Insurance Underwriters (Pennsylvania Manufacturers
Association Insurance Company) of:
(a) $250,000 under Coverage A;
(b) $250,000 under Coverage B;
(c) $100,000 under Coverage C;
(d) $100,000 under Coverage D; and
(e) $100,000 under Coverage E;
subject to an Aggregate Stop Loss Retention of
$4,387,513 and an Aggregate Stop Loss Limit of
$2,000,000;
(2) Coverage under SDRMA’s Reinsurance Agreement
with Old Republic Specialty Insurance Underwriters
(Pennsylvania Manufacturers Association Insurance
Company) referred to in (1) above with limits of:
(a) $2,250,000 under Coverage A;
(b) $2,250,000 under Coverage B;
Liability Coverage Agreement
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(c) $2,400,000 under Coverage C;
(d) $2,400,000 under Coverage D; and
(e) $2,400,000 under Coverage E;
subject to a maximum of $7,200,000 Ultimate Net Loss
per Occurrence all Public Officials liability, an Aggregate
Stop Loss Retention of $4,387,513 and an Aggregate
Stop Loss Limit of $2,000,000;
(3) Coverage under SDRMA’s Reinsurance Agreement
with QBE (Public Risk Underwriters of Texas) with limits
of liability of:
(a) $5,000,000 under Coverage A;
(b) $5,000,000 under Coverage B;
(c) $5,000,000 under Coverage C;
(d) $5,000,000 under Coverage D; and
(e) $5,000,000 under Coverage E;
a group aggregate corridor limit of $2,500,000 and a
$50,000,000 Annual Aggregate for all SDRMA Members
and Covered Parties; and
(4) Coverage under SDRMA’s Reinsurance Agreement
with Upland Specialty Insurance Company of:
(a) $2,500,000 under Coverage A;
(b) $2,500,000 under Coverage B;
(c) $2,500,00 under Coverage C;
(d) $2,500,000 under Coverage D; and
(e) $2,500,000 under Coverage E;
subject to an Annual Aggregate limit of $12,500,000 for
all SDRMA Members and Covered Parties.
IV. Coverage Territory This Liability Coverage Agreement applies only to Personal Injury,
Property Damage, Public Officials’ and Employees’ Errors and
Omissions, Employee Benefits Acts, Errors and Omissions or Wrongful
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Employment Practices occurring anywhere in the world provided that
the Covered Party’s responsibility to pay damages is determined in a
Suit on the merits in the United States of America (including its
territories and possessions), Puerto Rico or Canada.
V. Coverage Period This Liability Coverage Agreement applies only to Personal Injury,
Property Damage, Public Officials’ and Employees’ Errors and
Omissions, Employee Benefits Acts, Errors and Omissions and
Wrongful Employment Practices occurring during the Coverage Period.
VI. Persons or Entities
Covered
A. The Member identified in the Declarations.
B. All other Covered Parties.
VII. Exclusions Applicable to
All Coverages
Neither this Liability Coverage Agreement nor any coverage set forth in
this Liability Coverage Agreement shall apply to and SDRMA shall have
no duty to defend with respect to:
A. Intentional Acts:
Personal Injury or Property Damage expected or intended from the
standpoint of the Covered Party. This exclusion does not apply to
Bodily Injury resulting from the use of reasonable force to protect
persons or property.
VII. Exclusions, continued
B. Workers’ Compensation:
Any obligation for which the Covered Party or any carrier as the
insurer for the Covered Party may be held liable under any workers’
compensation, occupational disease, unemployment compensation
or disability benefits law, or under any similar law including but not
limited to the Jones Act (46 U.S.C. App. § 688, et seq.) or the Federal
Employer’s Liability Act (45 U.S.C. § 51, et seq.).
C. Watercraft:
Liability arising out of the ownership, maintenance, storage, loading
or unloading, use or operation of any Watercraft, unless such
Watercraft is less than fifty-one (51) feet in length.
D. Care, Custody or Control:
Any liability for Property Damage to Real Property owned by,
occupied by or leased to the Covered Party, or their agents or
subcontractors;
Real or Personal Property in the care, custody or control of any
Covered Party or their agents’ or subcontractors’ or as to which the
Covered Party or their agents or subcontractors is for any purpose,
exercising control.
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VII. Exclusions, continued
However, this exclusion shall not apply with respect to personal
property including but not limited to, memorials, headstones,
tombstones, tombs and/or similar personal property in the care,
custody or control of any Covered Party which is a Cemetery
District.
E. Contractual Liability
Personal Injury or Property Damage for which the Covered Party is
obligated to pay Damages by reason of the assumption of liability in
a contract or agreement. This exclusion does not apply to liability
for damages:
1. That the Covered Party would have in the absence of the
contract or agreement; or
2. Assumed by the Member in a contract or agreement that is a
Covered Contract, provided the Personal Injury or Property
Damage occurs subsequent to the execution of the contract or
agreement. Solely for the purpose of liability assumed in a
Covered Contract, reasonable attorney fees and necessary
litigation expenses incurred by or for a party other than a
Covered Party are deemed to be Damages because of Personal
Injury or Property Damage, provided:
a. Liability to such party for, or for the cost of, that party’s
defense has also been assumed in the same Covered
Contract; and
b. Such attorney fees and litigation expenses are for defense
of that party in a Suit in which Damages to which this
Liability Coverage Agreement applies are alleged.
F. Aircraft or Airfields:
Liability arising out of the ownership, maintenance, loading or
unloading, use or operation of any aircraft, airfields, runways,
hangars, buildings or other properties in connection with aviation
activities.
G. Medical Malpractice:
Personal Injury or Property Damage due to the rendering of or
failure to render:
1. Medical, surgical, dental, x-ray or nursing advice, service or
treatment, or the furnishing of food or beverages in connection
therewith;
2. Any advice, service or treatment conducive to health or of a
professional nature;
3. The furnishing or dispensing of drugs or medical, dental or
surgical supplies or appliances.
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VII. Exclusions, continued
4. The performance of services by physician’s assistants, nurse
practitioners, ambulance emergency medical technicians,
paramedics or other rescue personnel, including in connection
with services performed as part of a program for non-
emergency mobile hospitals.
However, this exclusion does not apply with respect to ambulance
emergency medical technicians, paramedics, or other rescue
personnel providing medical services in direct response to an
emergency call for such services, advice or treatment which the
Covered Party routinely provides other than non-emergency mobile
hospitals.
H. Inverse Condemnation
Claims, Suits, Damages, losses or any liability arising out of, caused
by, resulting from, contributed to, aggravated by or concurrently
caused in any way by any loss or liability alleged or imposed in
connection with or for Inverse Condemnation. This exclusion
applies both to any obligation to pay Damages on behalf of a
Covered Party as well as any duty to defend a Covered Party, and
applies to any Claim or Suit alleging or any judgment or award
imposing such liability, even if the allegations of the Claim or Suit
also assert, or the judgment or award also imposes, liability for the
same Damages or loss on other legal claims or theories, including
but not limited to the legal claims or theories of trespass, nuisance,
negligence or maintenance of a dangerous condition of public
property.
Subject to $1,000,000 per occurrence limitation set forth in the
declarations, this exclusion does not apply to liability for Inverse
Condemnation arising directly out of physical injury to or
destruction of tangible property which is neither expected nor
intended from the standpoint of the Covered Party, except that (1)
damage or loss due to a Covered Party’s knowing or deliberate
inappropriate failure to routinely maintain, repair or replace any
structure or improvement including, but not limited to, water lines,
gas lines, electrical lines, sewer lines or other provisions for
transmission or delivery of services will be deemed expected or
intended within the meaning of this exclusion, and (2) no coverage
is afforded for any nonphysical consequential damages, or for costs,
expert fees, appraisal fees, engineering fees or attorneys’ fees
claimed by or awarded to a plaintiff in an Inverse Condemnation
Suit.
I. Failure to Supply Electrical Power, Gas or Steam:
Liability arising out of the failure to supply electrical power, gas or
steam, or to liability arising out of the interruption of electrical
power or fuel supply.
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VII. Exclusions, continued
J. Failure to Supply Water:
Liability arising out of the failure or inability to supply or provide an
adequate supply of water due to liability arising out of the Covered
Party’s delivery or non-delivery of water based on any
administrative act or decision made by the Covered Party’s
governing body with respect to either obtaining a supply of water
for, or allocating the available supply of water amongst the Covered
Party’s water users. However, this exclusion does not apply to a
claim or Suit arising out of Personal Injury or Property Damage due
to an Occurrence if the failure to supply water results from the
sudden and accidental injury to tangible property (other than water)
owned or used by a Covered Party. In those instances where this
exclusion does not apply, there is a limit of $1,000,000 per
occurrence.
K. Subsidence and/or Earth Movement:
Liability arising out of, caused by, resulting from, contributed to,
aggravated by or concurrently caused by the subsidence of land or
earth movement, including landslide, earthquake, mud flow, earth
sinking, earth rising and earth shifting. However, this exclusion does
not apply if the subsidence or earth movement is the direct result of
or occurs subsequent to the Covered Party’s water lines breaking or
leaking.
L. Nuclear:
Personal Injury or Property Damage:
1. With respect to which the Covered Party is also an Insured
under a nuclear energy policy issued by the Nuclear Energy
Liability-Property Insurance Association, Mutual Atomic Energy
Liability Underwriters or Nuclear Insurance Association of
Canada, or would be an Insured under any such policy but for
its termination upon exhaustion of its limit of liability; or
Resulting from the “hazardous properties” of “nuclear material”
and with respect to which:
a. Any person or any organization is required to maintain
financial protection pursuant to the Atomic Energy Act of
1954, or any law amendatory thereof,
b. The Covered Party is, or had this policy not been available
would, be, entitled to indemnity from the United States of
America or any agency thereof, with any person or
organization.
2. Under any liability coverage, to injury, sickness, disease, death
or destruction resulting from the “hazardous properties” of
“nuclear material”, if:
The “nuclear material”:
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VII. Exclusions, continued
a. Is at any “nuclear facility” owned by the Covered Party or
operated by the Covered Party or on the Covered Party’s
behalf, or
b. Has been discharged or dispensed therefrom;
The “nuclear material” is contained in “spent fuel” or “waste”
at any time possessed, handled, used, processed, stored,
transported or disposed of by the Covered Party or on the
Covered Party’s behalf; or
The injury, sickness, disease, death or destruction arises out of
the furnishing by the Covered Party of services, materials, parts
or equipment in connection with the planning, construction,
maintenance, operation or use of any “nuclear facility”, but if
such facility is located within the United States of America, its
territories or Canada, this exclusion,
c. Applies only to injury or Property Damage to such “nuclear
facility” and any property threat.
3. As used in this exclusion:
a. “Hazardous properties” includes radioactive, toxic or
explosive properties;
b. “Nuclear material” means source material, special nuclear
material or by-products material;
c. “Source material”, “special nuclear material” and “by-
product material” have the meanings given them in the
Atomic Energy Act of 1954 or any law amendatory thereof;
d. “Spent fuel” means any fuel element or fuel component,
solid or liquid, which has been used or exposed to radiation
in a nuclear reactor;
e. “Waste” means any waste material
1. Containing by-product other than the tailings or wastes
produced by the extraction or concentration of uranium
or thorium from any ore processed primarily for its
source material contents; and
2. Resulting from the operation by any person or
organization of a nuclear facility included within the
definition of “Nuclear Facility” below;
f. “Nuclear Facility” means:
1. Any nuclear reactor;
2. Any equipment or device designed or used for:
a. Separating the isotopes of uranium or plutonium,
b. Processing or utilizing spent fuel, or
c. Handling, processing or packaging wastes
3. Any equipment or device used for the processing,
fabrication, or alloying of special nuclear material if at
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any time the total amount of such material in the
Covered Party’s custody at the premises where such
equipment or device is located consists of or contains
more than 25 grams of plutonium or uranium 233 or any
combination thereof, or more than 250 grams of
uranium 235;
Any structure, basin, excavation, premises or place
prepared or used for storage or disposal of waste, and
includes the site on which any of the foregoing is
located, all operations conducted on such site and all
premises used for such operations.
“Nuclear reactor” means any apparatus designed or
used to sustain nuclear fission in a self-supporting chain
reaction to contain a critical mass of fissionable
material;
With respect to injury or to destruction of property, the
word “injury” or “destruction” includes all forms of
radioactive contamination of property.
M. War:
Personal Injury, Property Damage, Public Officials and Employees
Errors and Omissions, Employee Benefits Acts, Errors and
Omissions or Wrongful Employment Practices due to war, whether
or not declared, or any act or condition incident to or arising out of
war. War includes civil war, insurrection, rebellion or revolution.
N. Pollution:
Any Claim for Personal Injury, Property Damage, or Public Officials’
and Employees’ Errors and Omissions, Employee Benefits Acts,
Errors and Omissions or Wrongful Employment Practices which
would not have occurred in whole or in part, but for the actual
alleged or threatened discharge, dispersal, seepage, migration,
release or escape of Pollutants, at any time anywhere in the world;
Any obligation to defend any Suit or Claim against the Covered
Party alleging Personal Injury, or Property Damage, or Public
Officials’ and Employees’ Errors and Omissions, Employee Benefits
Acts, Errors and Omissions or Wrongful Employment Practices and
seeking Damages, if such Suit or Claim arises from Personal Injury,
Property Damage, Public Officials’ and Employees’ Errors and
Omissions or Wrongful Acts, Employee Benefits Acts, Errors and
Omissions or Wrongful Employment Practices which would not
have occurred in whole or in part, but for the actual alleged or
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VII. Exclusions, continued
threatened discharge, dispersal, seepage, migration, release or
escape of Pollutants, at any time anywhere in the world;
Any loss, cost, or expense arising out of any request, demand, order
or statutory or regulatory requirement that the Covered Party test
for, monitor, clean up, remove, contain, treat, detoxify or neutralize,
or in any way respond to, or assess the effects of Pollutants;
Any loss, cost or expense incurred by a governmental unit or other
third party, including but not limited to costs for investigation and
monitoring, and attorneys' fees, relating to activities in connection
with efforts to test for, monitor, clean up, remove, contain, trace,
detoxify or neutralize, or in any way respond to, or assess the effects
of Pollutants.
Any Claim or Suit by or on behalf of a governmental authority for
damages because of testing for, monitoring, cleaning up, removing,
containing, treating, detoxifying or neutralizing, or in any way
responding to, or assessing the effects of, Pollutants.
However, this exclusion shall not apply to the following:
1. Liability arising out of Personal Injury, Property Damage
or Public Officials and Employees Errors & Omissions,
Employee Benefits Acts, Errors and Omissions or
Wrongful Employment Practices if such discharge,
disposal, seepage, migration, release or escape of
Pollutants is caused by heat, smoke or fumes from a
hostile fire involving a building or its contents which are
owned, rented or occupied by the Covered Party or upon
which the Covered Party is performing operations or
upon which operations are being performed on behalf of
the Covered Party or caused by lightning or vehicle
collision.
2. Liability arising from the loading, unloading or
transportation of hazardous materials by Auto.
3. Liability arising from sewage that emanated from a sewer
line or sewer system or back up from a sewer line or a
sewer system incurred by the Covered Party during the
Coverage Period.
4. Liability arising from the release or discharge of
Pollutants resulting from, the use of fire fighting
equipment in response to a hostile fire or other
emergencies that involve the use of fire fighting
equipment.
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VII. Exclusions, continued
5. Liability arising out of the use, handling, storage,
discharge, dispersal, seepage, migration, release, or
escape of chlorine or disinfectants.
6. Liability arising out of the use, handling, storage,
discharge, dispersal, seepage, migration, release, or
escape of the Covered Parties Products.
7. As respects operations involving pesticide or herbicide
application at or from any site or location not owned or
controlled by the Covered Party on which the Covered
Party or any contractors or subcontractors working
directly or indirectly on its behalf, is performing
operations if:
The Pollutants are brought on or to the site or location in
connection with such operations, and
The operations performed meet all standards of any
statute, ordinance, regulation, or license requirement of
any federal, state, or local government which apply to
those operations.
This exception applies only to direct and immediate
Bodily Injury or to direct and immediate Property
Damage sustained on those particular premises upon
which operations are being performed, by or on behalf of
the Covered Party or those premises immediately
adjoining.
O. Asbestos:
Any liability arising out of the manufacture of, mining of, use of, sale
of, installation of, removal of, distribution of or exposure to,
asbestos, asbestos products, asbestos fibers or asbestos dust; or,
Any liability to any party arising out of Personal Injury, Property
Damage, Public Officials’ and Employees’ Errors and Omissions,
Employee Benefits Liability or Wrongful Employment Practices due
to an Occurrence, Auto Accident, Wrongful Act, Employee Benefits
Act, Error or Omission, Wrongful Employment Practice, Claim or
Suit, at any time as a result of the manufacture of, mining of, use of,
sale of, installation of, removal of, distribution of or exposure to
asbestos, asbestos products, asbestos fibers or asbestos dust; or
Any liability to defend any Suit or Claim against the Covered Party
alleging Personal Injury, or Property Damage, or Public Officials’
and Employees’ Errors and Omissions, Employee Benefits Liability
or Wrongful Employment Practices due to an Occurrence, Auto
Accident, Wrongful Act, Employee Benefits Acts, Errors and
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VII. Exclusions, continued
Omissions or Wrongful Employment Practices if such Claim or Suit
results from or is contributed by any combination of the following:
manufacture of, mining of, use of, sale of, installation of, removal of,
distribution of, or exposure to asbestos, asbestos products, asbestos
fibers or asbestos dust;
Any loss, cost, expense, fine or penalty arising out of any of the
foregoing.
P. ERISA:
As respects liability imposed upon a Covered Party (or which is
imputed to a Covered Party) under the “Employee Retirement
Income Security Act of 1974” and any law amendatory thereof.
Q. Liquor:
Personal Injury or Property Damage for which the Covered Party or
its/their indemnitee may be held liable: As an owner or lessor of
premises used for such purposes, by reason of the selling, serving or
giving or permitting the possession or consumption of any alcoholic
beverage in violation of any statute, ordinance or regulation,
including any claim alleging negligence or wrongdoing in the
supervision, hiring, employment, training or monitoring of others
and/or providing or failing to provide transportation with respect to
any person who may be under the influence of alcohol.
However, this exclusion does not apply with respect to the liability
of the Covered Party or his indemnitee arising out of the giving,
serving or selling of alcoholic beverages at functions incidental to
the Covered Party's business, provided that the Covered Party is not
engaged in the business of manufacturing, distributing, selling or
serving of alcoholic beverages.
R. School Districts/Transit Districts:
Any liability arising out of the operation of school districts and/or
transit districts.
S. Recreation Equipment and Facilities:
Any Claim or Suit arising out of the use of trampolines or rebound
tumbling devices or bungee jumping.
T. Fines, Penalties or Punitive Damages:
Any fines, penalties, punitive or exemplary damages or the
multiplied portion of multiplied damages for which the Covered
Party may be legally obligated to pay, whether under common law
or statute. This exclusion also applies to any liability assumed under
any contract.
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VII. Exclusions, continued
U. Dam Breakage:
Liability arising out of the rupture, bursting, overtopping, accidental
discharge or from partial or complete, actual or constructive,
structural failure of any Dam.
V. Selenium:
Any and all liability for past, present, or future Claims arising, in
whole or in part, either directly or indirectly out of selenium, or any
compound containing selenium.
W. Law Enforcement:
Any Claim or Suit arising out of Law Enforcement Liability.
However, this exclusion shall not apply to the use of a Covered Auto.
X. Failure of Computer, Data Processing or Electronic Equipment to
Interpret or Accept one or more Dates or Time:
The failure, malfunction, or inadequacy of: Computer, data
processing or electronic equipment due to the inability to correctly
recognize, process, distinguish, interpret or accept one or more
dates or times (such as the Year 2000 and beyond) or;
Advice, consultation, design, evaluation, inspection, installation,
maintenance, repair, replacement or supervision provided or done
by the Covered Party or for the Covered Party to determine, rectify
or test for potential or actual problems to computers, data
processing or electronic equipment.
However, if loss or damage from certain causes of loss results, there
may be coverage for that resulting loss or damage, subject to the
terms and conditions of the Liability Coverage Agreement.
Y. Mold:
Any Claim or Suit arising out of fungus, fungi, mold, mildew or yeast,
spores or any material, product or component or a concentration
moisture water or other liquid within such material product or
component which contains, produces or otherwise acts as a medium
for any fungus, fungi, mold, mildew, yeast or spores, or toxicims
emanating therefrom.
For purposes of this exclusion, fungus and fungi include, but are not
limited to, any of the plants or organisms belonging to the major
group fungi, lacking chlorophyll and including molds, rusts, mildews,
smuts and mushrooms.
For purposes of this exclusion, “molds” includes but is not limited to
superficial growth produced on damp or decaying organic matter or
on living organisms and fungi that produce molds.
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VII. Exclusions, continued
For purposes of this exclusion, “spores” means any dormant or
reproductive body produced by or arising or emanating out of any
fungus, fungi, mold, mildew plants, organisms or micro organisms.
Z. Lead:
Any Claim or Suit arising out of the presence, ingestion, inhalation
or absorption of or exposure to lead in any form or products
containing lead.
AA. Failure to Procure Bond or Insurance:
Any Claim or Suit arising out of any Covered Party’s failure to
procure or maintain any insurance, bond or self-insurance.
BB. Liability of Covered Party in Insolvency or Guarantee Fund:
Any Claim or Suit arising out of any Covered Party’s participation or
membership, whether voluntary of involuntary, in any insurance or
risk financing pool, or in any insolvency fund, including any
guarantee fund, association, pool, plan, or other facility which
provides for the assessment of, or payment by, or assumption by
the Covered Party of a part or the whole of any claim, debt, charge,
fee, or other obligations of any insurer or risk financing entity or
syndicate, or their successors or assigns, which has been declared
insolvent by any authority having jurisdiction.
CC. Internet Exclusion:
Any Claim or Suit against a Covered Party arising out of any act,
error, or omission or other conduct as an:
(1) Internet Service Provider, meaning any person or entity
providing access to the Internet, content over the Internet or
connection to the Internet; or
(2) Internet Consulting Firm, which shall include but not be
limited to, any person or entity engaged for another person or
entity in the design, construction or management of an Internet
site or web page, including, but not limited to, internet forum,
chat room, bulletin board, and internet advertising in any form;
or
(3) Application Service Provider, meaning any person or entity
that provides software, applications and associated services to a
subscriber based across an area network; or
(4) Internet Backbone Provider, meaning any person or entity
that routes or provides channels for packets that transport data
from point to point on the Internet; or
(5) Entity or individual that derives ninety percent or more of
gross revenue or conducts or executes ninety percent or more of
business transactions on or through the Internet; or
(6) Entity or individual that is in the business of providing
electronic mail or messaging services; or
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VII. Exclusions, continued
(7) Entity or individual that is in the business of developing,
supplying and/or installing encryption software or applications
for use on the Internet.
“Internet” as utilized in this exclusion shall mean the
international computer network of interoperable packet
switched data networks, including the World Wide Web.
DD. CEQA:
Liability imposed upon a Covered Party (or which is imputed to a
Covered Party) under the “California Environmental Quality Act”
and any law amendatory thereof.
EE. Prior Manifestation:
Personal Injury or Property Damage that any Covered Party knew
or should have known first existed before the commencement of
this Coverage Period, or that were manifested or alleged to have
manifested before the commencement of this Coverage Period.
Personal Injury or Property Damage will be deemed to have been
manifested as of the earliest date by which any injury or damaged
occurred, irrespective of whether any Covered Party was aware of
the existence of any such injury or damage, and irrespective of
whether such injury or damage may have been continuous or
progressive or may have been due to repeated exposure to
substantially the same harmful conditions or may have continued,
changed, resumed or become progressively worse during this
Coverage Period.
FF. Acts Or Omissions Of Consultants Or Contractors Who Are Not Full-
Time Employees Of The Covered Party:
Any Claim or Suit for Personal Injury, Property Damage, Public
Officials’ and Employees’ Errors and Omissions, Employee
Benefits, Acts, Errors or Omissions, or Wrongful Employment
Practices arising out of the acts or omissions of any consultant or
contractor who is not a fulltime employee of the Covered Party, but
who is appointed by the Covered Party to act as its official, agent,
or other representative.
GG. Nuclear Biological Chemical Radiology Units:
Liability imposed upon the Covered Party arising out of exposure to
or damage caused by Nuclear Biological Chemical Radiology Unit.
HH. Fungal Pathogens:
Liability imposed upon the Covered Party arising out of exposure to
or damage caused by Fungal Pathogens.
II. Silica:
Liability imposed upon a Coverage Party arising out of exposure to
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VII. Exclusions, continued
or damage caused by Silica.
JJ. Wrap-Up Construction Project:
Any claim for Personal Injury, Property Damage, Public Officials’
Errors And Omissions, Employee Benefits, Acts, Errors or
Omissions and Wrongful Employment Practices arising out of any
construction project covered by a owner controlled insurance or
“wrap-up” type insurance program.
KK. Access or Disclosure of Confidential or Personal Information and
Data-related Liability
To any liability for Damages arising out of or by reason of:
(1) Any access to or disclosure of any person’s or organization’s
confidential or personal information, including patents, trade
secrets, processing methods, customer lists, financial
information, credit card information, health information or any
other type of nonpublic information; or
(2) The loss of, loss of use of, damage to, corruption of, inability to
access, alteration of, or inability to manipulate Electronic Data
or a data asset.
This Exclusion applies even if Damages are claimed for notification
costs, costs relating to theft prevention or cyber-security programs,
credit monitoring expenses, forensic expenses, public relations
expenses or any other loss, cost or expense incurred by the Covered
Party or others arising out of that which is described in Paragraph
(1) or (2) above.
LL. Injuries to Employee
Bodily Injury to:
(1) An Employee of a Covered Party arising out of the and in the
course of:
(a) Employment by the Covered Party; or
(b) Performing duties relate to the conduct of the Covered Party’s
operations; or
(2) The spouse, child, parent, brother or sister of that Employee as
a consequence of Paragraph (1) above.
This exclusion applies whether the Covered Party may be liable as
an employer or in any other capacity and to any obligation to share
Damages with or repay someone else who must pay Damages
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VII. Exclusions, continued
because of the injury.
This exclusion does not apply to liability assumed by a Covered
Party under a Covered Contract.
MM. Security, Debt, Bank Deposit, Financial Interest or Instrument:
To any liability for Damages arising out of or by reason of:
1. The purchase or sale, or offer of sale, or solicitation of any
security, debt, bank deposit, or financial interest or instrument;
2. Any representations made at any time in relation to the price or
value of any security, debt, bank deposit of financial interest or
instrument;
3. Any depreciation or decline in price or value of any security
debt, bank deposit or financial interest or instrument;
4. Failure to pay on debt financing of bonds or other securities
when due;
5. SEC violations; or
6. The collection, disbursement, or shortfall of any taxes.
NN. Gifts of Public Funds:
To any liability of a Covered Party for Damages on account of an
actual or alleged gift of public funds under Article XVI, Section 6 of
the California Constitution or otherwise.
OO. Aircraft Parts or Associated Equipment:
To any liability of a Covered Party for Damages on account of or
arising out of any loss, cost or expense related to aircraft or aircraft
parts necessary for safety, flight, navigation or other operation,
including equipment associated with ground support or control of
aircraft.
PP. Overhead Transmission and/or Feeder Lines:
To any liability of a Covered Party arising out of or resulting from
Overhead Electric Transmission Lines and/or Electric Feeder Lines
owned or maintained by any Covered Party.
QQ. Certified Acts of Terrorism:
Personal Injury, Property Damage, Public Officials and Employees
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VII. Exclusions, continued
Errors and Omissions, Employee Benefits Acts, Errors and
Omissions or Wrongful Employment Practices including awards for
punitive damages arising out of a Certified Act of Terrorism,
whether directly or indirectly, or any act or condition incident to or
arising out of a Certified Act of Terrorism.
RR. Acts of Terrorism By Unconventional Weapons:
Personal Injury, Property Damage, Public Officials and Employees
Errors and Omissions, Employee Benefits Acts, Errors and
Omissions or Wrongful Employment Practices arising out of an Act
of Terrorism, whether directly or indirectly, or any act or condition
incident to or arising out of or in connection with biological,
chemical, radioactive, or nuclear explosion, pollution,
contamination and/or fine following thereon. However, as respects
a fire following thereon, this exclusion shall not apply when
coverage is required by laws, regulations or public policy of any
state.
SS. Total Loss Salvage Vehicles:
To any liability of a Covered Party for Damages on account of or
arising out of any loss, cost or expense related to a total loss salvage
vehicle.
TT. Misapplication or Calculation of Compensation For Any Type of a
Public Retirement System or Plan
Any Liability, Claim or Suit for Damages, Public Officials’ and
Employees’ Errors and Omissions, Employee Benefits, Acts, Errors
or Omissions, or Wrongful Employment Practices arising out of the
Member’s actual or alleged error or omission in reporting or
calculating compensation for any type of a public retirement system
or plan, such as CalPERS, which results in the miscalculation of
retirement benefits and requires the Member to pay back to the
public retirement system or plan, all amounts paid to the retiree or
active member, or their survivor or beneficiary, and/or requires the
Member to make the retiree or active member, or their survivor or
beneficiary, “whole” for the loss of future benefits attributed to the
removal of Disallowed Compensation from the calculation of
retirement benefits.
This includes instances in which the public retirement system or plan
determines that the compensation for a retiree or active member
was Disallowed Compensation.
UU. Communicable Disease or Virus
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VII. Exclusions, continued
All loss, actual or alleged loss, Liability, Damage, compensation,
injury, sickness, disease, death, medical payment, Defense Cost,
cost, expense or any other amount, directly or indirectly and
regardless of any other cause contributing concurrently or in any
sequence, originating from, caused by, arising out of, contributed to
by, resulting from, or otherwise in connection with a Communicable
Disease or the fear or threat (whether actual or perceived) of a
Communicable Disease.
This exclusion applies even if the Claims against any insured allege
negligence or other wrongdoing in the:
a. Supervising, hiring, employing, training or monitoring of
others that may be infected with and spread a Communicable
Disease;
b. Testing for a Communicable Disease;
c. Failure to prevent the spread of the disease; or
d. Failure to report the disease to authorities.
VV. Cyber Incidents
All loss, injury, Damage, Liability, cost or expense caused by or
arising out of:
a. Cyber Act; or
b. Cyber Incident; or
c. The loss of, loss of use of, Damage to, corruption of , inability
to access, or inability to manipulate Electronic Data from a
Cyber Act, Cyber Incident or any other incident however
caused; or
d. Access to or disclosure of confidential or personal
information and/or data including any access to or disclosure of
any person’s or organization’s confidential or personal
information, including patents, trade secrets, processing
methods, customer lists, financial information, credit card
information, health information or any other type of nonpublic
information;
This exclusion applies even if Damages are claimed for notification
costs, credit monitoring expenses, forensic expenses, public
relations expenses or any other loss, cost or expense incurred by the
Member or others arising out of that which is described above.
WW. Covered Party as Participant of a Non-Member Joint Powers
Authority:
Any Liability or obligation of a Joint Powers Authority in which the
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VII. Exclusions, continued
Covered Party participates, including any liability or obligation of its
individual members, unless the Joint Powers Authority is a Member
of SDRMA.
XX. Medical Payments:
Medical payments coverage or expenses that are provided without
regard to fault.
YY. Wildfire
Claims, Suits, Damages, losses or any liability arising out of, caused
by, resulting from, contributed to, aggravated by or concurrently
caused in any way by any loss or liability alleged or imposed in
connection with or for Wildfire. This exclusion applies both to any
obligation to pay Damages on behalf of a Covered Party as well as
any duty to defend a Covered Party, and applies to any Claim or Suit
alleging or any judgment or award imposing such liability, even if the
allegations of the Claim or Suit also assert, or the judgment or award
also imposes, liability for the same Damages or loss on other legal
claims or theories, including but not limited to any cost a Covered
Party becomes legally obligated to pay as reimbursement for
fighting, suppressing or bringing under control any Wildfire.
Subject to $7,500,000 per occurrence limitation set forth in the
declarations, this exclusion does not apply to liability for Wildfire
arising directly out of physical injury to or destruction of tangible
property which is neither expected nor intended from the
standpoint of the Covered Party, except that no coverage is
afforded for any nonphysical consequential damages, or for costs,
expert fees, appraisal fees, engineering fees or attorneys’ fees
claimed by or awarded to a plaintiff in a Suit related to Wildfire.
ZZ. Use of Auto by Covered Party with Suspended or Revoked Driver’s
License
To any liability of any Covered Party arising out of their use of an
Auto while their driver’s license is suspended or revoked, and to any
liability of any other Covered Party, including the Member, arising
out of such use.
VIII. Additional Exclusions
Applicable to Coverage A,
Personal Injury or Property
Damage Due to an
Occurrence
Under Coverage A, Personal Injury or Property Damage due to an
Occurrence, coverage does not apply to:
A. Risks Covered Under Coverages B, C, D and E:
Any Personal Injury or Property Damage due to an Auto Accident,
to any Public Officials’ and Employees Errors’ and Omissions due to
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a Wrongful Act, to any Employee Benefits Act, Error or Omission or
to any Wrongful Employment Practices as defined in Coverages B, C,
D, and E respectively in this Liability Coverage Agreement.
B. Auto Accidents.
Personal Injury or Property Damage arising out of the ownership,
maintenance, use or entrustment to others of any Auto owned or
operated by or rented or loaned to any Covered Party.
This exclusion does not apply to:
(1) Parking an Auto on or on the ways next to premises which any
Covered Party owns or rents, provided the Auto is not owned
by, rented to or loaned to any Covered Party;
(2) Personal Injury or Property Damage arising out of the operation
of machinery or equipment that is attached to, or is part of, a
land vehicle that would qualify under the definition of Mobile
Equipment if it were not legally subject to registration as a
motor vehicle.
C. Mobile Equipment:
Personal Injury or Property Damage arising out of: The
transportation of Mobile Equipment by an Auto owned or operated
by or rented or loaned to any Covered Party or in connection with
the use of Mobile Equipment in any prearranged racing, speed or
demolition activity.
IX. Additional Exclusion
Applicable to Coverage B,
Personal Injury or Property
Damage Due to an Auto
Accident
Under Coverage B, Personal Injury or Property Damage due to an Auto
Accident, coverage does not apply to:
A. Risks Covered Under Coverages A, C, D and E:
Any Personal Injury or Property Damage due to an Occurrence, to
any Public Officials and Employees Errors and Omissions due to a
Wrongful Act, to any Employee Benefits Act, Error or Omission or
Wrongful Employment Practices as defined in Coverages A, C, D,
and E respectively in this Liability Coverage Agreement.
X. Additional Exclusions
Applicable to Coverage C,
Public Officials and
Employees Errors and
Omissions Liability
Under Coverage C, Public Officials and Employees Errors and Omissions
Liability, coverage, does not apply to:
A. Risks Covered Under Coverages A, B, D and E:
Any Personal Injury or Property Damage due to an Occurrence,
Personal Injury or Property Damage due to an Auto Accident,
Employee Benefits Acts, Errors or Omissions or Wrongful
Employment Practices as defined in Coverages A, B, D and E
respectively in this Liability Coverage Agreement;
B. Employee Benefit Plan:
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X. Additional Exclusions
Applicable to Coverage C,
continued
Benefits payable under an employee benefit plan (whether the plan
is voluntarily established by the Covered Party or mandated by
statute) because of unlawful discrimination or termination;
C. Taxes, Fees or Assessments:
Refunds or improper allocations of taxes, fees or assessments;
D. Remuneration Or Financial Gain:
Liability of a Covered Party arising in whole or in part, out of any
Covered Party obtaining remuneration or financial gain to which the
Covered Party was not legally entitled or liability arising out of the
willful violation of a penal statute or ordinance committed by or
with the knowledge or consent of any Covered Party; except that
any fact pertaining to any other Covered Party shall not be imputed
to any other Covered Party for the purpose of determining
application of these exclusions;
E. Preparation Of Bid Specifications, Plans Or Liability Arising Out of
Failure to Award Contracts:
Liability of any Covered Party arising out of (1) estimates of
probable costs or cost estimates being exceeded, (2) any faulty
preparation of bid specifications or plans, or (3) failure to award
contracts in accordance with any statute, ordinance or regulation
which requires that such contracts be submitted for bids;
F. Tangible Property:
Injury to, destruction or disappearance of any tangible property
(including money) or the loss of use thereof;
G. Breach of Contract:
Failure to perform and/or breach of a contractual obligation or any
liability arising out of breach of contract;
H. Fraud, Knowingly Wrongful or Criminal Acts:
Fraud, knowingly wrongful acts, or criminal acts for which there has
been a final determination that the Covered Party is liable.
However, if the Suit seeks Damages covered by the terms and
conditions of this Liability Coverage Agreement, SDRMA will furnish
a defense until such time as there has been a final determination of
liability for fraud, a knowingly wrongful act or acts, or a criminal act
or acts;
I. Use, Misuse, Loss Or Return Of Funds, Grants, Appropriations:
Liability for Damages arising out of the actual or alleged use, misuse
or loss of funds, grants or appropriations or for the return of such
funds, grants or appropriations for any reason;
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XI. Additional Exclusions
Applicable to Coverage D,
Employee Benefits Acts,
Errors and Omissions
Under Coverage D. for Employee Benefits Acts, Errors and Omissions,
coverage does not apply to:
A. Risks Covered Under Coverages A, B, C and E:
Any Personal Injury or Property Damage due to an Occurrence,
Auto Accident, Public Officials’ and Employees’ Errors and
Omissions or, Wrongful Employment Practices, as defined in
Coverages A, B, C and E respectively in this Liability Coverage
Agreement;
B. Dishonest or Intentional Acts:
Any dishonest, fraudulent, criminal or malicious act;
C. Breach Of Contract:
Any Claim for failure of performance of contract by an insurer or any
other party, including any insurer’s or any other party’s obligation
to afford benefits, or any liability arising out of breach of contract;
D. Workers’ Compensation:
Any obligation of the Covered Party under a Workers'
Compensation, Social Security, Disability Benefits or Unemployment
Compensation law or any similar law;
E. Stock, Bonds, Securities:
Any Claim based upon:
1. Failure of stock, bonds or other securities to perform as
represented by the Covered Party, including but not limited to
its failure to produce financial gain, profit or growth;
2. Counsel given by a Covered Party to an employee to participate
or not to participate in stock subscription plans.
F. ERISA:
Any liability of a Covered Party as a fiduciary under the Employee
Retirement Income Security Act of 1974 (P.L. 93-406), as respects
any employee benefit plan.
XII. Additional Exclusions
Applicable to Coverage E,
Wrongful Employment
Practices
Under Coverage E, Wrongful Employment Practices, coverage does not
apply to:
A. Risks Covered Under Coverages A, B, C and D:
Personal Injury or Property Damage due to an Occurrence,
Personal Injury or Property Damage due to an Auto Accident,
Public Officials and Employees Errors and Omissions' Liability or
Employee Benefits Acts, Errors and Omissions as defined in
Coverages A, B, C or D respectively in this Liability Coverage
Agreement;
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B. Strikes And Lockouts; W.A.R.N. Act, Disabled Person
Accommodations:
Wrongful Employment Practices as respects:
1. Strikes and Lockouts. This Liability Coverage Agreement does
not apply to any Claim, Claims, or Suit for loss arising out of a
lockout, strike, picket line, replacement or similar actions in
connection with labor disputes or labor negotiations.
2. W.A.R.N. Act. This Liability Coverage Agreement does not apply
to any Claim, Claims, or Suit for loss arising out of the Workers
Adjustment and Retraining Notification Act, Public Law 100-379
(1988), or any amendment thereto, or any similar federal state
or local law.
3. Any Claim, Claims, or Suit arising out the failure of the Covered
Party to modify any building or property in order to make said
building or property more accessible or accommodating to any
disabled person.
C. Contracts:
A failure to perform or breach of any written contracts or
agreements relating to employment with a Covered party.
XIII. Definitions
When used in bold in this policy (including endorsements forming a part
hereof):
Administration means providing information with respect to Employee
Benefits Plans; giving counsel to employees with respect to employee
benefit plans; interpreting the employee benefit plans; handling of
records in connection with the employee benefit plans; effecting
enrollment, termination or cancellation of employees under the
employee benefit plans, provided all are acts which are authorized by a
Covered Party.
Aircraft means a vehicle designed for the transport of persons or
property principally in the air or outer space.
Auto means a land motor vehicle, trailer, or semi-trailer, but does not
include Mobile Equipment.
Auto Accident means an accident for which a Covered Party is legally
liable for conduct arising out of the ownership, maintenance or use of a
Covered Auto.
Bodily Injury means physical injury, sickness, disease, disability, mental
anguish, mental injury or death.
Certified Act of Terrorism means an act that is certified by the Secretary
of the Treasury, in concurrence with the Secretary of State and Attorney
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XIII. Definitions, continued
General of the United States, to be an act of terrorism pursuant to the
federal Terrorism Risk Insurance Act.
The criteria contained in the Terrorism Risk Insurance Act for a Certified
Act of Terrorism include the following:
1. The act resulted in insured losses in excess of $5 million in the
aggregate, attributable to all types of insurance subject to the
Terrorism Risk Insurance Act; and
2. The act is a violent act or an act that is dangerous to human life,
property or infrastructure and is committed by an individual or
individuals as part of an effort to coerce the civilian population of
the United States or to influence the policy or affect the conduct of
the United States Government by coercion.
Claim(s) means a demand for Damages other than a Suit.
Communicable Disease means any disease which can be transmitted by
means of any substance or agent from any organism to another
organism where:
1. the substance or agent includes, but is not limited to, a virus,
bacterium, parasite or other organism or any variation thereof,
whether deemed living or not, and
2. the method of transmission, whether direct or indirect, includes
but is not limited to, airborne transmission, bodily fluid
transmission, transmission from or to any surface or object, solid,
liquid or gas or between organisms, and
3. the disease, substance or agent can cause or threaten Bodily
Injury, illness, emotional distress or damage to human health,
human welfare or Property Damage.
Completed Operations Hazard includes Personal Injury and Property
Damage arising out of operations or reliance upon a representation or
warranty made at any time with respect thereto, but only if the Personal
Injury or Property Damage occurs after such operations have been
completed or abandoned and occurs away from premises owned by or
rented to the Covered Party. Operations include materials, parts or
equipment furnished in connection therewith. Operations shall be
deemed completed at the earliest of the following times:
A. When all operations to be performed by or on behalf of the Covered
Party at the site of the operations have been completed; or
B. When the portion of the work out of which the injury or damage
arises has been put to its intended use by any person or organization
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XIII. Definitions, continued
other than another contractor or subcontractor engaged in
performing operations for a principal as part of the same project.
Operations which may require further service or maintenance work, or
correction, repair or replacement because of any defect or deficiency,
but which are otherwise complete shall be deemed completed.
The Completed Operations Hazard does not include Personal Injury or
Property Damage arising out of:
A. operations in connection with the transportation of property unless
the Personal Injury or Property Damage arises out of a condition in
or on a vehicle created by the loading or unloading thereof;
B. The existence of tools, uninstalled equipment or abandoned or
unused materials.
Computer System means any computer, hardware, software,
communications system, electronic device (including, but not limited to,
smart phone, laptop, tablet, wearable device), server, cloud or
microcontroller including any similar system or any configuration of the
aforementioned and including any associated input, output, data
storage device, networking equipment or back up facility, owned or
operated by the Insured or any other party
Coverage Period means the period during which this Liability Coverage
Agreement is in effect as shown in the Declarations or Certificate of
Coverage issued by SDRMA.
Covered Auto means an Owned Auto as defined herein as well as any
Auto which is not owned by the Covered Party but which is hired or
borrowed by the Member. Covered Auto also includes any other Auto
for which the Member may be liable because of its ownership,
maintenance or use.
Covered Contract means:
A. A contract for a lease of premises. However, that portion of the
contract for a lease of premises that indemnifies any person or
organization for damage by fire to premises while rented to the
Covered Party or temporarily occupied by the Covered Party with
permission of the owner is not a Covered Contract;
B. A sidetrack agreement;
C. Any easement or license agreement, except in connection with
construction or demolition operations on or within 50 feet of a
railroad;
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XIII. Definitions, continued
D. An obligation, as required by ordinance, to indemnify a municipality,
except in connection with work for a municipality;
E. An elevator maintenance agreement;
F. That part of any other contract or agreement pertaining to a
Covered Party’s business (including an indemnification of a
municipality in connection with work performed for a municipality)
under which the Covered Party assumes the tort liability of another
party to pay for Bodily Injury or Property Damage to a third person
or organization. Tort liability means a liability that would be
imposed by law in the absence of any contract or agreement.
Paragraph F. does not include that part of any contract or agreement:
1. That indemnifies a railroad for Bodily Injury or Property
Damage arising out of construction or demolition operations,
within 50 feet of any railroad property and affecting any railroad
bridge or trestle, tracks, roadbeds, tunnel, underpass or
crossing;
2. That indemnifies an architect, engineer or surveyor for injury or
damage arising out of:
(a) Preparing, approving, or failing to prepare or approve, maps,
shop drawings, opinions, reports, surveys, field orders,
change orders or drawings and specifications; or
(b) Giving directions or instructions, or failing to give them, if
that is the primary cause of the injury or damage; or
3. Under which the Covered Party, if an architect, engineer or
surveyor, assumes liability for an injury or damage arising out of
the the Covered Party’s rendering or failure to render
professional services, including those listed in (2) above and
supervisory, inspection, architectural or engineering activities.
However, no contract requiring arbitration shall constitute a Covered
Contract unless SDRMA is entitled to exercise the Covered Party’s rights
in a choice of arbitrators or in the conduct of such proceedings.
Covered Individual(s) means:
A. Those individuals who were or now are elected or appointed officials
of the Member, including members of its governing body or any
other committees, trustees, boards or commissions of the Member,
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XIII. Definitions, continued
while acting in the course and scope of employment with or for or
on behalf of the Member.
B. Past or present individual employees and board members of the
Member while acting for or on behalf of the Member.
C. Any of the Members individual Volunteers while acting within the
course and scope of their service or duties as Volunteers, or workers
who participate in an internship or training program which may lead
to employment with the Member, while acting within the scope of
their duties in their internship or training program.
D. Any individual added by endorsement.
Covered Parties Products means any goods or products, other than real
property, manufactured, sold, handled, distributed or disposed of by the
Member, including, but not limited to, water or waste water. Covered
Parties Products also includes containers (other than vehicles),
materials, parts or equipment furnished in connection with such goods
or products. Further, Covered Parties Products includes warranties or
representations made at any time with respect to the fitness, quality,
durability, performance or use of such product and the providing of or
failure to provide warnings or instructions. Covered Parties Products
does not include vending machines or other property rented to or
located for use of others but not sold.
Covered Party means a Member, a Covered Individual or any other
entity or individual added by endorsement as a Covered Party. If the
Member named in the Declarations is a Joint Powers Authority duly
authorized and existing pursuant to the provisions of California
Government Code §§ 6500 et seq., members of that Joint Powers
Authority, but only to the extent such Joint Powers Authority members
of the SDRMA Member named in the Declarations are liable under
Government Code § 895.2 for the acts or omissions of the SDRMA
Member named in the Declarations. The term Covered Party shall not
include a Member’s or Covered Individual’s legal counsel or that legal
counsel’s law firm.
Cyber Act means an unauthorized, malicious or criminal act or series of
related unauthorized, malicious or criminal acts, regardless of time and
place, or the threat or hoax thereof involving access to, processing of,
use of or operation of any Computer System.
Cyber Incident means:
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XIII. Definitions, continued
a. Any error or omission or series of related errors or omissions
involving access to, processing of, use of or operation of any
Computer System; or
b. Any partial or total unavailability or failure or series of related
partial or total unavailability or failures to access, process, use or
operate any Computer System.
Dam means any artificial barrier, including a dam, dike, levee or similar
structure, together with appurtenant works, which is designed to and
does or may impound or divert water.
Damage(s) means monetary compensation for injuries or losses
suffered, including loss of services, resulting from Personal Injury,
Property Damage, Public Officials’ and Employees’ Errors and Omissions, Employee Benefits Acts, Errors and Omissions or Wrongful
Employment Practices. Damages does not include injunctive relief,
declaratory relief, restitution, earned but unpaid compensation,
overtime compensation,attorneys’ fees, fines or penalties or any civil
liability under California Water Code Section 13385.
Defense Costs means reasonable attorney's fees, costs and expenses
and other fees, costs and expenses incurred in connection with the
investigation, adjustment, defense and appeal of a Claim or Suit covered
hereunder. However, Defense Costs do not include the office or
administration expenses of SDRMA any Volunteer or the Covered Party,
nor the salaries of employees or officials of SDRMA or the Covered
Party.
Disallowed Compensation refers to compensation reported for a retiree
or active member of a public retirement system or plan, by the state,
school employer, or a contracting agency that the public retirement
system or plan, subsequently determines is not in compliance with the
California Public Employees’ Pension Reform Act of 2013 (Article 4
(commencing with Section 7522) of Chapter 21 of Division 7 of Title 1),
Section 20636 or 20636.1, or the administrative regulations of the
system.
Electric Feeder Lines includes but is not limited to electrical distribution
network lines carrying electrical power between substations and
consumers or end users. For the purposes of this definition, Electric
Feeder Lines includes electric distribution lines and service drops.
Electronic Data means information, facts or programs stored as or on,
created or used on, or transmitted to or from computer software
(including systems and applications software), hard or floppy disks, CD-
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XIII. Definitions, continued
ROMS, tapes, drives, cells, data processing devices or any other media
which are used with electronically controlled equipment.
Employee means a person (i) employed by a Covered Party in exchange
for wages or a salary; or (ii) who is a current or former member of the
Member’s board of directors. But Employee does not include any
Leased Worker, Volunteer, any independent contractor, any employees
of any independent contractor while acting within the scope of their
employment, or any worker who participates in an internship or training
program which may lead to employment with the Member.
Employee Benefits Acts, Errors and Omissions means any acts, errors
and omissions resulting from the negligent Administration of employee
benefit plans.
Hostile Fire means a fire that becomes uncontrollable or breaks out
from where it was intended to be.
Inverse Condemnation means liability for Property Damage or any other
loss, damage, cost or expense arising out of or in connection with
principles of eminent domain, condemnation proceedings or inverse
condemnation by whatever name called, including land use regulation,
zoning, land use planning or planning decisions or enforcement of
building codes and/or building regulations
Law Enforcement Liability means any liability for Personal Injury or
Property Damage arising out of the operations of the Covered Party
from the acts or omissions of:
A. Police officers who are armed or have the power of arrest, including
but not limited to school crossing guards and meter attendants;
B. Auxiliary, volunteer, or reserve police officers;
C. Other employees of any police agency, including but not limited to
stenographic, clerical, court security personnel, court security, and
civil process personnel;
D. Administrative employees while operating for or on behalf of any
police agency, including crime prevention officers; and
E. Members of the governing body, including but not limited to County
Commissioners, City Council Members, Mayor, City Managers,
Coroner and Humane Officers with respect to individuals identified
in A, B, C and D above.
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XIII. Definitions, continued
Leased worker means a person leased to a Covered Party by a labor
leasing firm under an agreement between the Covered Party and the
labor leasing firm to perform duties related to the conduct of the
Covered Party’s business. Leased worker does not include a Temporary
Worker.
Member(s) means the District(s), Agency(s), City(ies) or Entity(s)
identified in the Declarations.
Mobile Equipment means any type of land motor vehicle not legally
subject to registration as a motor vehicle.
Occurrence means an accident or event, including continuous,
repeated, or related exposure to conditions, which results in Personal
Injury or Property Damage neither expected nor intended from the
standpoint of the Covered Party. All such exposure to substantially the
same general conditions shall be deemed one Occurrence.
Other Fire Incident means a conflagration which threatens to destroy
life, property, or natural resources, and (a) is not burning within the
confines of firebreaks, or (b) is burning with such intensity that it could
not be readily extinguished, with ordinary tools commonly available, for
a period greater than 24 hours.
Overhead Electric Power Transmission Lines includes but is not limited
to power carrying lines which carry electricity between generating
stations and substations.
Owned Auto means an Auto owned by the Member at the
commencement of the Coverage period or acquired by the Member
during the Coverage period, provided that the Member notifies SDRMA
within 30 days of its acquisition of ownership.
Personal Injury includes the following:
A. Bodily Injury;
B. False arrest, detention or imprisonment;
C. Malicious prosecution;
D. The wrongful eviction from, wrongful entry into, or invasion of the
right of private occupancy of a room, dwelling or premises that a
person occupies, committed by or on behalf of its owner, landlord
or lessor;
E. Oral or written publication, in any manner, of material that
slanders or libels a person or organization or disparages a person’s
or organization’s goods, products or services;
F. Oral or written publication, in any manner, of material that violates
a person’s right of privacy;
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XIII. Definitions, continued
G. A publication including a publication placed on the internet or on
similar electronic means of communication, or an utterance that
slanders or libels a person or organization or violates a person's right
of privacy or disparages a person's or organization's goods, products
or services, except with respect to advertising, publishing,
broadcasting or telecasting done by or for the Covered Party;
H. Assault and battery not committed by, at the direction of, or with
the consent of the Covered Party. However, this limitation does not
apply if committed or directed for the purpose of protecting persons
from injury or death, or property from damage;
Any Personal Injury shall be deemed to occur at the time of the
Occurrence or Auto Accident that caused it.
Pollutants means any solid, liquid, gaseous, or thermal irritant or
contaminant, including smoke, vapor, soot, fumes, acids, alkalis,
chemicals and waste material. Waste material, includes materials which
are intended to be or have been recycled, reconditioned or reclaimed;
Products Hazard means Personal Injury and Property Damage arising
out of the Covered Party's products or reliance upon a representation
or warranty with respect thereto, but only if the Personal Injury or
Property Damage occurs away from premises owned by or rented to the
Covered Party and after physical possession has been relinquished to
others;
Property Damage means:
A. Physical injury to tangible property, including all resulting loss of use
of that property. All such loss of use shall be deemed to occur at the
time of the physical injury that caused it;
B. Loss of use of tangible property that is not physically injured. All such
loss of use shall be deemed to occur at the time of the Occurrence
or Auto Accident that caused it; or
C. Loss of, loss of use of, damage to, corruption of, inability to access,
or inability to properly manipulate Electronic Data, resulting from
physical injury to tangible property. All such loss of Electronic Data
shall be deemed to occur at the time of the Occurrence or Auto
Accident that caused it.
Public Officials and Employees Errors and Omissions means any and all
Wrongful Acts by a Covered Party arising from misfeasance,
malfeasance or nonfeasance including any actual or alleged negligent
action or inaction, mistake, misstatement, error, neglect, inadvertence,
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XIII. Definitions, continued
or omission by the Covered Party in the discharge of duties on behalf of
the Covered Party;
Sexual Harassment Incident means any actual or alleged negligent or
intentional act, error or omission, amounting to or resulting in
unwelcome sexual advances, requests for sexual favors or other conduct
of a sexual nature actually or allegedly perpetrated upon a person by
another person, or persons, acting in concert, which causes physical
and/or mental injuries, where:
A. The submission to or rejection of such conduct is made either
explicitly or implicitly a condition of a person’s employment, or a
basis for employment decisions affecting a person; or
B. The conduct has the purpose of, or effect of interfering with a
person’s work performance or creating an intimidating, hostile or
offensive work environment.
Sexual Abuse or Molestation Incident means any actual or alleged
negligent or intentional act, error or omission, amounting to or resulting
in sexual abuse or molestation or threatened sexual abuse or
molestation. A Sexual Abuse or Molestation Incident does NOT include
a Sexual Harassment Incident.
Suit means a civil lawsuit in a court of general jurisdiction in which
Damages are alleged because of (1) Personal Injury or Property
Damage, (2) one or more Wrongful Acts due to Public Officials Errors
and Omissions, (3) one or more Employee Benefits Acts, Errors and
Omissions, (4) one or more Wrongful Employment Practices, or any
combination thereof, to which this coverage applies.
Suit includes:
A. An arbitration proceeding in which such Damages are claimed and
to which the Covered Party must submit or does submit with
SDRMA's consent; or
B. Any other alternative dispute resolution proceeding in which such
Damages are asserted and to which the Covered Party submits with
SDRMA's consent.
Temporary worker means a person who is furnished to a Covered Party
to substitute for a permanent Employee on leave or to meet seasonal
or short-term workload conditions.
Total Loss Salvage Vehicle means a vehicle that has been wrecked,
destroyed, or damaged to the extent that it has been considered
uneconomical to repair by vehicle’s owner, lessor, lender, insurer, or risk
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XIII. Definitions, continued
financing entity, and as a consequence the vehicle is not repaired by or
for the person who owned or leased the vehicle at the time of the event
resulting in wreckage, destruction or damage.
Ultimate Maximum Loss means the Ultimate Maximum Loss of SDRMA
as set forth in the Declarations.
Ultimate Net Loss means (1) the sums in excess of the Member
Deductible as set forth in the Declarations, for which, after making
deductions for all recoveries from valid and collectible insurance and
other risk financing, the Covered Party(ies) is/are legally liable to pay as
Damages by reason of either a judgment or a settlement made with the
written consent of the claimant, the Covered Party and SDRMA, and (2)
Defense costs incurred by SDRMA. However, SDRMA has no obligation
to pay defense costs once the applicable limit of liability has been
exhausted.
Uninsured Motor Vehicle means a land motor vehicle or trailer for
which no liability bond or policy at the time of an accident provides at
least the amounts required by the applicable law where a Covered Auto
is principally garaged.
Volunteer means any non-compensated individual who, pursuant to
prearrangement with and under the general direction of the Member,
performs a service for the Member.
Watercraft means a vehicle designed for the transport of persons or
property principally on water.
Wildfire means any sweeping and destructive conflagration in a
wilderness or a rural area that can also consume houses, buildings or
other structures and agricultural resources (exclusive of the insured’s
premises). The term Wildfire is also understood to include any Other
Fire Incident.
Wrongful Act means any actual or alleged negligent act, error or
omission, including but not limited to those constituted by:
A. Any violation of antitrust statutes;
B. Any negligent ministerial act;
C. Any faulty preparation or approval of maps, plans, reports, surveys,
designs, or specifications.
Wrongful Employment Practice means any act resulting in Damages to:
A. Any person arising out of any:
1. refusal to employ that person;
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2. termination of that person's employment, either actual or
constructive; or
3. employment-related practices, acts or omissions such as
coercion, demotion, evaluation, reassignment, discipline,
retaliation, defamation, harassment, humiliation or
discrimination directed at that person;
B. The spouse, child, parent, brother or sister of that person as a
consequence of loss to the person at whom any of the employment-
related practices described in paragraph 1, 2, 3 above is directed.
It is further agreed that Wrongful Employment Practice means:
A. Any action relating to a past, present, or prospective Employee of
the Member for or arising out of any actual or alleged wrongful
dismissal, discharge or termination, either actual or constructive, of
employment, employment related misrepresentation, wrongful
discipline, failure to grant tenure or negligent employee evaluation;
sexual or workplace harassment of any kind, including, but not
limited to, the alleged operation or maintenance of a harassing
workplace environment, unlawful discrimination, whether direct,
indirect, intentional or unintentional, failure to provide adequate
employee policies and procedures; or abusive, hostile, offensive or
other illegitimate conduct, including verbal abuse, derogatory
remarks, insults, epitaphs, or other verbal or physical conduct which
is threatening, intimidating or humiliating or amounts to the
gratuitous sabotage or undermining of a person’s work
performance.
B. Any action brought under state, local, or federal law, whether
common or statutory, including the following laws as amended as
well as any regulation promulgated there under;
1. Americans with Disabilities Act of 1992(ADA);
2. Civil Rights Act of 1991;
3. Age Discrimination in Employment Act of 1967 (ADEA),
including the Older Workers Benefit Protection Act of 1990;
4. Title VII of the Civil Rights Law of 1964, as amended (1993),
including the Pregnancy Discrimination Act of 1978;
5. Civil Rights Act of 1866; and
6. Fifth and Fourteenth amendments of the U.S. Constitution.
Wrongful Employment Practice does not include Employee Benefits,
Acts, Errors and Omissions or any misrepresentations relating to salary,
wages, compensation, benefits or Employee Benefit Plans.
Any Wrongful Employment Practice must take place solely in or arise
out of the conduct of the Covered Party's operations.
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XIV. Conditions
A. Inspection and Audit: SDRMA shall be permitted but not obligated
to inspect the Member’s real and personal property and operations
at any time. Neither SDRMA's right to make inspections nor the
making thereof nor any report thereon shall constitute an
undertaking, on behalf of or for the benefit of the Member or
others, to determine or warrant that such property or operations
are safe. SDRMA may examine and audit the Member’s books and
records at any time during the Coverage Period and extensions
thereof and within three years after this Liability Coverage
Agreement is no longer in effect, as far as they relate to the subject
matter of this Coverage.
B. Duties of Covered Party in the Event of an Occurrence, Auto
Accident, Wrongful Act, Employee Benefits Acts Errors and
Omission or Wrongful Employment Practices, Claim or Suit or other
circumstances or events:
In the event of the happening of an Occurrence, Auto Accident,
Wrongful Act, Employee Benefits Acts, Errors and Omissions or
Wrongful Employment Practices, written notice containing
particulars sufficient to identify the Covered Party and also
reasonably obtainable information with respect to the time, place
and circumstances thereof, and the names, addresses and phone
numbersd of the injured and of available witnesses, shall be given
by or for the Covered Party to SDRMA or any of its authorized
agents as soon as practicable.
If a Claim is made or Suit is brought against a Covered Party, the
Covered Party shall immediately forward to SDRMA every demand,
notice, summons, claim or other process received by the Covered
Party or its or their representative.
The Covered Party shall cooperate with SDRMA and upon its
request assist in making settlements, in the conduct of Suits and in
enforcing any right of contribution or indemnity against any person
or organization who may be liable to the Covered Party because of
Personal Injury, Property Damage, Employee Benefits, Public
Officials and Employees Errors and Omissions or Wrongful
Employment Practices with respect to the Coverage afforded under
this Liability Coverage Agreement; and the Covered Party shall
attend hearings and trials and assist in securing and giving evidence
and obtaining the attendance of witnesses. No Covered Party shall,
except at its or their own cost, voluntarily make any payment,
assume any obligation or incur any expense without SDRMA’s
written consent. The Covered Party shall do nothing after the loss
to impair SDRMA’s right of equitable or legal subrogation,
contribution or indemnification against any other person or entity.
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XIV. Conditions, Continued
The Member is responsible for payment to SDRMA of any co-
payment, deductible or any retained limits upon presentation of
such invoice from SDRMA.
SDRMA, at its sole option and without the consent of the Covered
Party, may investigate and/or settle any Claim or Suit within the
Limits of Liability of this Liability Coverage Agreement.
Whenever the Covered Party has information from which the
Covered Party may reasonably conclude that an Occurrence, Auto
Accident, Wrongful Act, Employee Benefits Acts, Errors and
Omissions, Wrongful Employment Practices Claim or Suit covered
hereunder involves injuries or Damages for which the Covered
Party could be held liable, or is likely to involve this Liability
Coverage Agreement, notice shall be sent to the following address
as soon as practicable, provided, however, that failure to give notice
of an Occurrence, Auto Accident, Wrongful Act, Employee Benefits
Acts, Errors and Omissions, Wrongful Employment Practices, Claim
or Suit which at the time of its happening, did not appear to involve
this Liability Coverage Agreement but which at a later date, would
appear to give rise to a Claim or Suit hereunder, shall not prejudice
such Claim or Suit.
The address to send the notice specified in the preceding paragraph is:
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
1112 “I” Street, Suite 300
Sacramento, CA 95814
Tel 800.537.7790 Direct 916.231.4141 FAX 916.231.4111
In case of an Occurrence, Auto Accident, Wrongful Act, Employee
Benefits Acts Error and Omissions or Wrongful Employment
Practices, Claim or Suit, a Covered Party shall, upon request by
SDRMA, perform the following duties:
1. Cooperate with and assist SDRMA in any matter relating to an
Occurrence, Auto Accident, Wrongful Act, Employee Benefits
Acts Error and Omissions or Wrongful Employment Practices,
Claim or Suit.
2. Submit to and subscribe, outside the presence of any other
Covered Party as often as SDRMA reasonably requires:
a) statements;
b) examinations under oath, and
3. Produce employees, officers, and directors of a Covered Party
for
statements and examinations under oath, upon request, to the
extent it is within the Covered Party’s power to do so.
Liability Coverage Agreement
2021-22 Property/Liability Coverage Documents Page: 41 of 42 Tel 800.537.7790
Special District Risk Management Authority Fax 916.231.4111 Rev. 07/1/2021 www.sdrma.org
XIV. Conditions, Continued
4. Provide SDRMA with original records and documents SDRMA
requests and permit SDRMA to make copies.
C. Legal Actions Against SDRMA: There will be no right of action against
SDRMA under this Liability Coverage Agreement unless the Covered
Party shall have complied with all of the terms and conditions of this
Liability Coverage Agreement and the amount the Covered Party
owes has been determined either by actual trial and final judgment
or by settlement with the written consent of SDRMA.
Notwithstanding any other provision of law, any action against
SDRMA for recovery of any sums claimed to be due under this
Liability Coverage Agreement shall be filed within one years of the
receipt of the written denial of the claim by SDRMA. Any such action
shall be venued in the Superior Court of California, County of
Sacramento.
D. Concealment of Fraud: This entire Liability Coverage Agreement is
void, and no coverage is available for any Covered Party if any
Covered Party has knowingly and willfully concealed or
misrepresented any material fact or circumstance relating to this
Liability Coverage Agreement or any Claim arising thereunder
before or after the Occurrence or Suit giving rise to the Claim.
E. Bankruptcy and Insolvency: Bankruptcy or insolvency of the Covered
Party shall not reduce or limit SDRMA of any of the obligations
hereunder.
F. Available Insurance: The coverages provided by this Liability
Coverage Agreement shall apply only in excess of any insurance
available to any Covered Party including through its participation
with another Joint Powers Authority whether or not it is properly
formed under California Government Code §§ 6500 et seq. In
addition, the coverage provided by this Liability Coverage
Agreement shall apply only in excess of any other coverage or
benefits provided by self-insurance arrangements, pools, self-
insurance trusts, captive insurance companies, retention groups,
reciprocal exchanges, or any other plan or agreement of risk
transfer or assumption.
G. Recovery of Sums Paid: SDRMA has the right, on behalf of any
Covered Party, to seek recovery of sums paid pursuant to this
Liability Coverage Agreement on behalf of the Covered Party. In
seeking such a recovery, SDRMA shall be acting as the designated
representative of that Covered Party. All rights of recovery shall
remain with the Covered Party such that there is no automatic
assignment or transfer of the original claim. At SDRMA’s request,
Liability Coverage Agreement
2021-22 Property/Liability Coverage Documents Page: 42 of 42 Tel 800.537.7790
Special District Risk Management Authority Fax 916.231.4111 Rev. 07/1/2021 www.sdrma.org
XIV. Conditions, Continued
the Covered Party shall assign its rights of recovery to SDRMA. All
sums recovered under this provision, regardless of whether the
Covered Party has assigned its rights to SDRMA or not, shall be
applied to reimburse SDRMA for payments paid pursuant to this
Liability Coverage Agreement.
H. Changes: Notice to any agent or knowledge possessed by any agent
or by any other person shall not effect a waiver or change in any
part of this Liability Coverage Agreement or estop SDRMA from
asserting any right under the terms of this Liability Coverage
Agreement, nor shall the terms of this Liability Coverage Agreement
be waived or changed, except by endorsement issued to form a part
of this Liability Coverage Agreement.
I. Assignment: Assignment of interest under this Liability Coverage
Agreement shall not bind SDRMA unless such consent is given in
writing.
J. Notices: The Member named in the Declarations is authorized to act
on behalf of itself and all other Covered Parties or Covered
Individuals with respect to the giving and receiving of any notices
under this Liability Coverage Agreement. However, SDRMA shall
only be obligated to furnish to the Member notices required or
authorized under this Liability Coverage Agreement.
K. Appeal: If your claim is denied, you have the right to file a written
appeal within 60 days of the date of the written denial. Your appeal
must be submitted in writing and should include the reason(s) why
you disagree with the denial, along with documentation supporting
your appeal.
EXECUTION
IN WITNESS WHEREOF this Liability Coverage Agreement has been executed by Special District
Risk Management Authority on the date shown below, for the period shown in the Declarations
attached hereto.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY (SDRMA)
Signed by: ___ _________________________________ __July 1, 2021____
Laura S. Gill Date
Chief Executive Officer
7853431.1