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Insurance - CMSD - 1975-07-01 This endorsement modifies such insurance as is afforded by the provisions of the policy relating to the following designated insurance: 0 0 Excess Liability DEFENSE COVERAGE ENDORSEMENT In consideration of the premium set forth herein. it is agreed that this policy is extended to aclude the Milos,ing 1. In the event of the cessation of the obligation of all underlying insurers either to investigate and defend the rim ed or to indemnify the insured or to pay on behalf of the insured the costs and expe aes of investigating and defend) the insured. then the company shall either (a) assume the duty of investigating and defending the insured against suits seeking darnae Uteri Ise cos under this policy, or (b) indemnify the insured for the reasonable costs and expenses of nvestigatine and defendm Let seeking dame, 25 other wise covered under this policy whichever the company may elect. However nothing contained herein shall he construed as affording coverage for th nffici p ices Tf the incu n, iII aalanes and expenses of employees of the insured or the general retainer fees of counsel retained by Ut nsiuul. 2. As soon as the insured has information that the obligation of all underlying nsurers to either vestigate and defend, demnify or pay on behalf of the insured the costs and expenses of investigating and defending th insured has or ill cease 'h insured shall immediately give written notice to the company Upon receipt of such notice the company ill, thin a reasonable tin elect and notify the insured of its decision. 3. The additional obligations assumed by the company under the terms of this endorsement are included in, and rot it addition to, the applicable limit of the company s liability. 4. The last sentence in the defim ion of loss in the policy form is deleted. The last sentence in Condition 2 'Notice of Loss, Participation in Defense by company is deleted and replaced by the folios mg- 'When the company elects to proceed in accordance with provision 1(a) of this endorsement. the company shall assume the duty of investigating and defendin, the rimed against suits seeking damages otlrr Ise covered under this pun y and shall have the right to ['take any settlenr ant of any suit is it de ns xpedient. At all other ti res the ror marry sir dl still h ve the right, but only if it so elects, to participate in the nvestigation, settlement, trial, appeal or other defense of ar clap n or sal against the insured. 5. The additional premium for this endorsement is _ included_ This endorsement forms a part of and is for attachment to the following described policy issued by the Columbia Casualty company designated therein, takes effect on the effective date of said policy unless another effective date is shown below at thi hr ur stated in said policy and expires concurrently with said policy Must Be Cor iple( <I C iplctr Only Who Th E nor if ! \nf Prep rid !kith the P o ivy Or I Ant to b Ettertie with the Policy ENDT NO. POLICY NO. ' ISSUED TO EFFECTIVE OA!! OF THIS ENOORfEMENr 3 /I RDX 186 37 04 Costa Mesa Sanitary District 7/1/75 60/111/8/76 18/A 6FISU/7LTYCOIIPANY eounte rgned by _ /` taattâś“4 Author zed riepresonte