Risk Point Policy PDF

13455 Noel Rd, Suite 2100 Dallas, TX 75240 Ph: 214-369-3900...

13455 Noel Rd, Suite 2100 Dallas, TX 75240 Ph: 214-369-3900 Fax: 469-310-9110 Binding Confirmation Issue Date Policy # March 6, 2019 HRP0001887-00 Surplus Lines Agent Originating Agency Risk Theory Insurance Services TrueRisk Advisors, LLC License #: 2047652 10440 N. Central Expressway, Ste 800 Dallas Texas, 75231 Insured Home State American Speed, Inc dba Mancuso Harley-Davidson Texas Insurer(s) Policy Term Houston Specialty Insurance Company 3/1/2019 to 3/1/2020 Coverage(s) Program Vehicle Inventory Program Risk Point Vehicle Inventory Program Premiums and Fees Premium ……..…………….……………………………………………………………….… $185,684.00 Brokerage Fee ……..…………….……………………………………………………………….… $0.00 Taxes Stamping Fee ……..…………….……………………………………………………………….… $278.53 Surplus Lines ……..…………….……………………………………………………………….… $9,005.67 Total Total ……..…………….……………………………………………………………….… $194,968.20 Surplus Lines Tax and Filing Fee Risk Theory Insurance Services, LLC is responsible for surplus lines tax and filings. Subjectivities  Houston Specialty Insurance Company Vehicle Inventory Program Insured: American Speed, Inc dba Mancuso Harley- Date: March 6, 2019 Davidson Mailing Address: 535 North Loop Fwy Program #: MPD0000-04 City, State, Zip: Houston, Texas 77018 Policy Number: HRP0001887-00 Risk Point ID #: 100026861-03 Producer: Risk Theory Insurance Services, LLC Mailing Address: 13455 Noel Rd, Two Galleria Tower, Suite 2300 City, State, Zip: Dallas TX, 75240 Policy Declarations Coverage Begins: March 1, 2019 at 12:01 am standard time at the location of property insured Coverage Ends: March 1, 2020 at 12:01 am standard time at the location of property insured Premium 185,684.00 Stamping Fee 278.53 Surplus Lines 9,005.67 $194,968.20 Total Premium & Taxes Comprehensive Rate per $100 of Auto Value 0.7050 Collision Rate per $100 of Auto Value 0.0400 This insurance contract is with an insurer not licensed to transact insurance in this state and is issued and delivered as surplus line coverage under the Texas insurance statutes. The Texas Department of Insurance does not audit the finances or review the solvency of the surplus lines insurer providing this coverage, and the insurer is not a member of the property and casualty insurance guaranty association created under Chapter 462, Insurance Code. Chapter 225, Insurance Code, requires payment of a 4.85 percent tax on gross premium. (V.T.C.A., Insurance Code §981.101). The surplus lines broker is responsible for filing, collecting, and remitting applicable surplus lines taxes and fees. Risk Point LLC Houston Specialty Insurance Company 13455 Noel Road, Suite 2300 800 Gessner, Suite 600 Dallas, Texas 75240 Houston, Texas 77024  Houston Specialty Insurance Company Vehicle Inventory Program Parts and Labor Limits Maximum Limit Per Covered Auto Parts Labor $250,000 Parts Replacement: 75% of Labor Costs: 90% of Customary Customary insurance retail cost insurance labor costs False Pretense $100,000 Per Location Per Occurrence Subcontracted: 100% of Customary Subcontracted: 100% of Customary $200,000 Aggregate for any one Coverage Period insurance retail cost insurance labor cost Deductible: $2,500 per Auto / No Per Occurrence Aggregate Endorsements and Attached Forms OSIC EOC Evidence of Coverage HSIC 00 05 Loss Payable Endorsement 04 2013 OSIC 00 01 Policy Form Risk Point 03 2013 OSIC 00 02 In Witness Clause 03 2013 SOS OSIC CW SIS 09 13 OSIC 00 14 Mandatory Endorsement 04 2013 HSIC 00 12 Reduced Windstorm Deductible for Protecting Autos 07 2013 HSIC 00 10 Expense Reimbursement 09 2013 HSIC 00 09 California Flood and EQ Endorsement 07 2013 Margin Loc # Quoted Dealer Location Coverage $ Per Location Limit $ Deductible Clause Does Not $2,500 Per Auto / $12,500 Per Collision $129,000 Apply Occurrence Comprehensive – General (Except $2,500 Per Auto / $12,500 Per Weather, Flood, $129,000 125% Occurrence Earthquake, and False Pretense) Houston Harley-Davison Central Comprehensive – $2,000 Per Auto / No Aggregate Per $129,000 125% Weather Occurrence 535 North Loop Fwy; 3003 Yale St; 7101 Comprehensive – Does Not North Main; 523 E. 31st $0 No Coverage 1 Flood Apply 10% of Comprehensive Earthquake Hoston, Comprehensive – Does Not $129,000 Limit, Subject to a minimum of $5,000 Texas Earthquake Apply Per Auto 77018 The Limit shown for Comprehensive Weather for each Does Not Terrorism location, unless a $5,000 per Occurrence Apply separate endorsement is attached Risk Point LLC Houston Specialty Insurance Company 13455 Noel Road, Suite 2300 800 Gessner, Suite 600 Dallas, Texas 75240 Houston, Texas 77024  Houston Specialty Insurance Company Vehicle Inventory Program Margin Loc # Quoted Dealer Location Coverage $ Per Location Limit $ Deductible Clause Does Not $2,500 Per Auto / $12,500 Per Collision $578,000 Apply Occurrence Comprehensive – General (Except $2,500 Per Auto / $12,500 Per Weather, Flood, $578,000 125% Occurrence Earthquake, and False Pretense) American Speed, Inc Comprehensive – $2,000 Per Auto / No Aggregate Per $578,000 125% Weather Occurrence 12710 Crossroads Parkway Comprehensive – Does Not $1,500 per Auto / No per Occurrence $578,000 2 Flood Apply Aggregate Houston, 10% of Comprehensive Earthquake Comprehensive – Does Not Texas $578,000 Limit, Subject to a minimum of $5,000 Earthquake Apply 77018 Per Auto The Limit shown for Comprehensive Weather for each Does Not Terrorism location, unless a $5,000 per Occurrence Apply separate endorsement is attached Margin Loc # Quoted Dealer Location Coverage $ Per Location Limit $ Deductible Clause Does Not $2,500 Per Auto / $12,500 Per Collision $2,268,000 Apply Occurrence Comprehensive – General (Except $2,500 Per Auto / $12,500 Per Weather, Flood, $2,268,000 125% Occurrence Earthquake, and False Pretense) Team Mancuso Powersports North Comprehensive – $2,000 Per Auto / No Aggregate Per $2,268,000 125% Weather Occurrence 9650 North Fwy Comprehensive – Does Not $0 No Coverage 3 Flood Apply Houston, 10% of Comprehensive Earthquake Comprehensive – Does Not Texas $2,268,000 Limit, Subject to a minimum of $5,000 Earthquake Apply 77037 Per Auto The Limit shown for Comprehensive Weather for each Does Not Terrorism location, unless a $5,000 per Occurrence Apply separate endorsement is attached Risk Point LLC Houston Specialty Insurance Company 13455 Noel Road, Suite 2300 800 Gessner, Suite 600 Dallas, Texas 75240 Houston, Texas 77024  Houston Specialty Insurance Company Vehicle Inventory Program Margin Loc # Quoted Dealer Location Coverage $ Per Location Limit $ Deductible Clause Does Not $2,500 Per Auto / $12,500 Per Collision $5,190,000 Apply Occurrence Comprehensive – General (Except $2,500 Per Auto / $12,500 Per Weather, Flood, $5,190,000 125% Occurrence Earthquake, and False Pretense) Team Mancuso Powersports South Comprehensive – $2,000 Per Auto / No Aggregate Per $5,190,000 125% Weather Occurrence 4801 Gulf Fwy Comprehensive – Does Not $0 No Coverage 4 Flood Apply La Marque, 10% of Comprehensive Earthquake Comprehensive – Does Not Texas $5,190,000 Limit, Subject to a minimum of $5,000 Earthquake Apply 77568 Per Auto The Limit shown for Comprehensive Weather for each Does Not Terrorism location, unless a $5,000 per Occurrence Apply separate endorsement is attached Margin Loc # Quoted Dealer Location Coverage $ Per Location Limit $ Deductible Clause Does Not $2,500 Per Auto / $12,500 Per Collision $4,000,000 Apply Occurrence Comprehensive – General (Except $2,500 Per Auto / $12,500 Per Weather, Flood, $4,000,000 125% Occurrence Earthquake, and False Pretense) Team Mancuso Powersports SW Comprehensive – $2,000 Per Auto / No Aggregate Per $4,000,000 125% Weather Occurrence 7250 Southwest Fwy Comprehensive – Does Not $1,500 per Auto / No per Occurrence $4,000,000 5 Flood Apply Aggregate Houston, 10% of Comprehensive Earthquake Comprehensive – Does Not Texas $4,000,000 Limit, Subject to a minimum of $5,000 Earthquake Apply 77074 Per Auto The Limit shown for Comprehensive Weather for each Does Not Terrorism location, unless a $5,000 per Occurrence Apply separate endorsement is attached Risk Point LLC Houston Specialty Insurance Company 13455 Noel Road, Suite 2300 800 Gessner, Suite 600 Dallas, Texas 75240 Houston, Texas 77024  Houston Specialty Insurance Company Vehicle Inventory Program Margin Loc # Quoted Dealer Location Coverage $ Per Location Limit $ Deductible Clause Does Not $2,500 Per Auto / $12,500 Per Collision $2,233,000 Apply Occurrence Comprehensive – General (Except $2,500 Per Auto / $12,500 Per Weather, Flood, $2,233,000 125% Occurrence Earthquake, and False Pretense) Team Mancuso Powersports 59 Comprehensive – $2,000 Per Auto / No Aggregate Per $2,233,000 125% Weather Occurrence 10430 Southwest Fwy Comprehensive – Does Not $0 No Coverage 6 Flood Apply Houston, 10% of Comprehensive Earthquake Comprehensive – Does Not Texas $2,233,000 Limit, Subject to a minimum of $5,000 Earthquake Apply 77074 Per Auto The Limit shown for Comprehensive Weather for each Does Not Terrorism location, unless a $5,000 per Occurrence Apply separate endorsement is attached Margin Loc # Quoted Dealer Location Coverage $ Per Location Limit $ Deductible Clause Does Not $2,500 Per Auto / $12,500 Per Collision $4,065,000 Apply Occurrence Comprehensive – General (Except $2,500 Per Auto / $12,500 Per Weather, Flood, $4,065,000 125% Occurrence Earthquake, and False Pretense) Team Mancuso Powersports Gulf Fwy Comprehensive – $2,000 Per Auto / No Aggregate Per $4,065,000 125% Weather Occurrence 11415 Gulf Fwy Comprehensive – Does Not $1,500 per Auto / No per Occurrence $4,065,000 7 Flood Apply Aggregate Houston, 10% of Comprehensive Earthquake Comprehensive – Does Not Texas $4,065,000 Limit, Subject to a minimum of $5,000 Earthquake Apply 77034 Per Auto The Limit shown for Comprehensive Weather for each Does Not Terrorism location, unless a $5,000 per Occurrence Apply separate endorsement is attached Risk Point LLC Houston Specialty Insurance Company 13455 Noel Road, Suite 2300 800 Gessner, Suite 600 Dallas, Texas 75240 Houston, Texas 77024  Houston Specialty Insurance Company Vehicle Inventory Program Margin Loc # Quoted Dealer Location Coverage $ Per Location Limit $ Deductible Clause Does Not $2,500 Per Auto / $12,500 Per Collision $4,151,000 Apply Occurrence Comprehensive – General (Except $2,500 Per Auto / $12,500 Per Weather, Flood, $4,151,000 125% Occurrence Earthquake, and False Pretense) American Speed, Inc Comprehensive – $2,000 Per Auto / No Aggregate Per $4,151,000 125% Weather Occurrence 8648 Glenmont Drive Comprehensive – Does Not $1,500 per Auto / No per Occurrence $4,151,000 8 Flood Apply Aggregate Houston, 10% of Comprehensive Earthquake Comprehensive – Does Not Texas $4,151,000 Limit, Subject to a minimum of $5,000 Earthquake Apply 77074 Per Auto The Limit shown for Comprehensive Weather for each Does Not Terrorism location, unless a $5,000 per Occurrence Apply separate endorsement is attached Margin Loc # Quoted Dealer Location Coverage $ Per Location Limit $ Deductible Clause Does Not $2,500 Per Auto / $12,500 Per Collision $2,200,000 Apply Occurrence Comprehensive – General (Except $2,500 Per Auto / $12,500 Per Weather, Flood, $2,200,000 125% Occurrence Earthquake, and False Pretense) American Speed, Inc Comprehensive – $2,000 Per Auto / No Aggregate Per $2,200,000 125% Weather Occurrence 3003 Yale Street Comprehensive – Does Not $1,500 per Auto / No per Occurrence $2,200,000 9 Flood Apply Aggregate Houston, 10% of Comprehensive Earthquake Comprehensive – Does Not Texas $2,200,000 Limit, Subject to a minimum of $5,000 Earthquake Apply 77018 Per Auto The Limit shown for Comprehensive Weather for each Does Not Terrorism location, unless a $5,000 per Occurrence Apply separate endorsement is attached Risk Point LLC Houston Specialty Insurance Company 13455 Noel Road, Suite 2300 800 Gessner, Suite 600 Dallas, Texas 75240 Houston, Texas 77024  Houston Specialty Insurance Company Vehicle Inventory Program Margin Loc # Quoted Dealer Location Coverage $ Per Location Limit $ Deductible Clause Does Not $2,500 Per Auto / $12,500 Per Collision $10,000 Apply Occurrence Comprehensive – General (Except $2,500 Per Auto / $12,500 Per Weather, Flood, $10,000 125% Occurrence Earthquake, and False Pretense) American Speed, Inc Comprehensive – $2,000 Per Auto / No Aggregate Per $10,000 125% Weather Occurrence 7101 N Main Street Comprehensive – Does Not $1,500 per Auto / No per Occurrence $10,000 10 Flood Apply Aggregate Houston, 10% of Comprehensive Earthquake Comprehensive – Does Not Texas $10,000 Limit, Subject to a minimum of $5,000 Earthquake Apply 77022 Per Auto The Limit shown for Comprehensive Weather for each Does Not Terrorism location, unless a $5,000 per Occurrence Apply separate endorsement is attached Margin Loc # Quoted Dealer Location Coverage $ Per Location Limit $ Deductible Clause Does Not $2,500 Per Auto / $12,500 Per Collision $100,000 Apply Occurrence Comprehensive – General (Except $2,500 Per Auto / $12,500 Per Weather, Flood, $100,000 125% Occurrence Earthquake, and False Pretense) American Speed, Inc Comprehensive – $2,000 Per Auto / No Aggregate Per $100,000 125% Weather Occurrence 505 W 31st St Comprehensive – Does Not $1,500 per Auto / No per Occurrence $100,000 11 Flood Apply Aggregate Houston, 10% of Comprehensive Earthquake Comprehensive – Does Not Texas $100,000 Limit, Subject to a minimum of $5,000 Earthquake Apply 77018 Per Auto The Limit shown for Comprehensive Weather for each Does Not Terrorism location, unless a $5,000 per Occurrence Apply separate endorsement is attached Risk Point LLC Houston Specialty Insurance Company 13455 Noel Road, Suite 2300 800 Gessner, Suite 600 Dallas, Texas 75240 Houston, Texas 77024  1 IMPORTANT NOTICE AVISO IMPORTANTE To obtain information or make a complaint: Para obtener informacion o para someter una queja: queja: 2 You may contact your Insurer at 1-800-829- Puede comunicarse con su Insurer al 1-800- 8165. 829-8165. 3 You may call Oklahoma Specialty Insurance Usted puede llamar al numero de telefono Company's toll-free telephone number for gratis de Oklahoma Specialty Insurance information or to make a complaint at: Company’s para informacion o para someter una queja al: 1-800-829-8165 1-800-829-8165 4 You may also write to Oklahoma Specialty Usted tambien puede escribir a Oklahoma Insurance Company at: 800 Gessner, Ste 600, Specialty Insurance Company: 800 Gessner, Houston, TX 77024 Ste 600, Houston, TX 77024 5 You may contact the Texas Department of Puede comunicarse con el Departamento de Insurance to obtain information on Seguros de Texas para obtener informacion companies, coverages, rights or complaints at: acerca de companias, coberturas, derechos o quejas al: 1-800-252-3439 1-800-252-3439 6 You may write the Texas Department of Puede escribir al Departamento de Seguros Insurance: de Texas: P.O. Box 149104 P.O. Box 149104 Austin, TX 78714-9104 Austin, TX 78714-9104 Fax: (512) 490-1007 Fax: (512) 490-1007 Web: http://www.tdi.state.tx.us Web: http://www.tdi.state.tx.us E-mail: [email protected] E-mail: [email protected] 7 PREMIUM OR CLAIM DISPUTES: DISPUTAS SOBRE PRIMAS O RECLAMOS: Should you have a dispute concerning your Si tiene una disputa concerniente a su prima premium or about a claim you should contact o a un reclamo, debe comunicarse con el the agent or the company first. If the dispute agente o la compania primero. Si no se is not resolved, you may contact the Texas resuelve la disputa, puede entonces Department of Insurance. comunicarse con el departamento (TDI). 8 ATTACH THIS NOTICE TO YOUR POLICY: UNA ESTE AVISO A SU POLIZA: This notice is for information only and does Este aviso es solo para proposito de not become a part or condition of the informacion y no se convierte en parte o attached document. condicion del documento adjunto. 03 2014  Houston Specialty Insurance Company Vehicle Inventory Program Lender Loss Payable / Lienholder Endorsement Policy Number: HRP0001887-00 Effective Date: Lender Loss Payee / Lienholder: BMW of North America, LLC %Corporate Insurance Dept Address: 8725 West Higgins Rd, Ste 485 City, State Zip: Chicago, Illinois 75086 Applicable to the following locations: All This endorsement forms a part of your policy. It is effective at 12:01 A.M. local time on the effective date and at the address shown above. Any claim under the above described policy will be made payable jointly to the Named Insured shown in the Declarations or Evidence of Coverage and the Lender Loss Payee / Lienholder referenced herein. If we cancel the policy, we will mail notice to the Lender Loss Payee / Lienholder not less than 10 days prior to the effective date of cancellation. We will not mail notice to the Lender Loss Payee / Lienholder if the insured cancels the policy. Opportunity_Loss_Payable_End_Wording  Houston Specialty Insurance Company Vehicle Inventory Program Lender Loss Payable / Lienholder Endorsement Policy Number: HRP0001887-00 Effective Date: Wells Fargo Commercial Distribution Finace Corp, Polaris Lender Loss Payee / Lienholder: Acceptance: Insurance Processing Address: PO Box 35703 City, State Zip: Billings, Montana 59107 Applicable to the following locations: All This endorsement forms a part of your policy. It is effective at 12:01 A.M. local time on the effective date and at the address shown above. Any claim under the above described policy will be made payable jointly to the Named Insured shown in the Declarations or Evidence of Coverage and the Lender Loss Payee / Lienholder referenced herein. If we cancel the policy, we will mail notice to the Lender Loss Payee / Lienholder not less than 10 days prior to the effective date of cancellation. We will not mail notice to the Lender Loss Payee / Lienholder if the insured cancels the policy. Opportunity_Loss_Payable_End_Wording  Houston Specialty Insurance Company Vehicle Inventory Program Lender Loss Payable / Lienholder Endorsement Policy Number: HRP0001887-00 Effective Date: Lender Loss Payee / Lienholder: Kawasaki Motors Finace Corp Address: 9950 Jeronimo Rd City, State Zip: Irvine, California 92618 Applicable to the following locations: All This endorsement forms a part of your policy. It is effective at 12:01 A.M. local time on the effective date and at the address shown above. Any claim under the above described policy will be made payable jointly to the Named Insured shown in the Declarations or Evidence of Coverage and the Lender Loss Payee / Lienholder referenced herein. If we cancel the policy, we will mail notice to the Lender Loss Payee / Lienholder not less than 10 days prior to the effective date of cancellation. We will not mail notice to the Lender Loss Payee / Lienholder if the insured cancels the policy. Opportunity_Loss_Payable_End_Wording  Houston Specialty Insurance Company Vehicle Inventory Program Lender Loss Payable / Lienholder Endorsement Policy Number: HRP0001887-00 Effective Date: Lender Loss Payee / Lienholder: America Honda Finance Corporation c/o DealerGuard Address: 26555 Evergreen Road Suite City, State Zip: 410 Applicable to the following locations: Southfield, Michigan 48076 All This endorsement forms a part of your policy. It is effective at 12:01 A.M. local time on the effective date and at the address shown above. Any claim under the above described policy will be made payable jointly to the Named Insured shown in the Declarations or Evidence of Coverage and the Lender Loss Payee / Lienholder referenced herein. If we cancel the policy, we will mail notice to the Lender Loss Payee / Lienholder not less than 10 days prior to the effective date of cancellation. We will not mail notice to the Lender Loss Payee / Lienholder if the insured cancels the policy. Opportunity_Loss_Payable_End_Wording  Houston Specialty Insurance Company Vehicle Inventory Program Lender Loss Payable / Lienholder Endorsement Policy Number: HRP0001887-00 Effective Date: Lender Loss Payee / Lienholder: TCF Inventory Finance, Inc Address: PO Box 59376 City, State Zip: Schaumburg, Illinois 60159 Applicable to the following locations: All This endorsement forms a part of your policy. It is effective at 12:01 A.M. local time on the effective date and at the address shown above. Any claim under the above described policy will be made payable jointly to the Named Insured shown in the Declarations or Evidence of Coverage and the Lender Loss Payee / Lienholder referenced herein. If we cancel the policy, we will mail notice to the Lender Loss Payee / Lienholder not less than 10 days prior to the effective date of cancellation. We will not mail notice to the Lender Loss Payee / Lienholder if the insured cancels the policy. Opportunity_Loss_Payable_End_Wording  Houston Specialty Insurance Company AUTOMOBILE PHYSICAL DAMAGE POLICY PLEASE READ THIS POLICY CAREFULLY. THIS POLICY DOES NOT PROVIDE BODILY INJURY LIABILITY, PROPERTY DAMAGE LIABILITY, OR ANY OTHER COVERAGE FOR WHICH A SPECIFIC PREMIUM CHARGE IS NOT MADE. THIS POLICY DOES NOT SATISFY FINANCIAL RESPONSIBILITY LAWS OR STATUTORY REQUIREMENTS FOR NO-FAULT COVERAGES. Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy the words “you” and “your” refer to (a) the Named Insured shown in the Declarations, and (b) any Named Insureds identified on any Evidence of Coverage issued with authority granted solely by us in connection with this policy, each for their respective interest in covered autos. The words “we”, “us” and “our” refer to the Company providing this insurance as identified in the Declarations. PART I - DEFINITIONS The following words and phrases have special meaning throughout this policy and appear in boldface type when used. A. Actual cash value means the value of a similar auto of like kind and quality at the time and place of loss. B. Actual repair cost: 1. For repairs you perform or repairs performed by a repair facility in which you or any of your officers, shareholders, or employees have a financial interest, actual repair cost means the list price of parts less 25%, plus the customary insurance labor rate less 10%, unless another amount is shown in the Declarations. 2. If you subcontract all or part of the repair to a repair facility in which neither you nor any of your officers, shareholders or employees have a financial interest, actual repair cost for the subcontracted work will be the actual price paid by you to the repair facility. C. Actual selling price means the final retail or wholesale price of a covered auto you sell, including commission, but excluding taxes, license, registration, and tags. If the covered auto is not repaired prior to sale, actual selling price will be calculated using our appraised value of the actual repair cost. D. Auto means a land motor vehicle, trailer, or semitrailer, including any permanently attached equipment, or any watercraft taken in trade while such watercraft is on land. E. Collision means loss, unless otherwise limited or excluded, to a covered auto that is the result of (1) the covered auto striking or being struck by another vehicle or object, or (2) the upset of the covered auto. F. Comprehensive means loss, unless otherwise limited or excluded, to a covered auto from any cause except collision. G. Comprehensive-general means loss, unless otherwise limited or excluded, to a covered auto from any cause except flood, earthquake, or false pretense. 00 01 03-2013 1  H. Coverage period means the period beginning on the Coverage Effective date and ending on the Coverage Expiration date, as those dates are shown on the Declarations or Evidence of Coverage. I. Coverage territory is the United States of America, its territories and possessions. J. Covered auto means: 1. An auto which is parked at a location when not in use or which is in transit to or from a location, except if in transit from the manufacturer, and (a) which you own, except if you are the lessor, (b) which is in your possession for consignment or sale, (c) which you hire or borrow for a period of less than one year, or (d) of which you are the lessee under a lease for a period of one year or more; or, 2. Any watercraft (a) included in the definition of auto, and (b) that you own. K. Demonstrator means a covered auto that is furnished to persons or entities for their temporary use for the purpose of demonstration regardless of whether or not they are employees. L. Diminution in value means the actual or perceived reduction, if any, between the value of a covered auto prior to damage and its value following actual or feasible repair. M. Earthquake means: a. earthquake and volcanic eruption; or b. mudslide, landslide, or sinkhole; or c. earth movement caused by: i. extracting oil or gas from below the earth's surface by any process, including but not limited to hydraulic fracturing or drilling; or ii. injecting or inserting any substance, including but not limited to, water and wastewater, below the earth's surface for any purpose; or iii. storage of any substance, including but not limited to, water and wastewater below the earth's surface for any purpose; or iv. any combination of i., ii., or iii. above. N. Economic loss means: 1. For Collision Coverage, the difference between the actual selling price of a new covered auto damaged by collision and the wholesale value of the same new covered auto, if the actual selling price is lower than the wholesale value and the actual repair cost exceeds 10% of the wholesale value. 2. For Comprehensive Coverage, the reduction in value to a new covered auto specifically due to miles added to the odometer reading as a result of a total theft loss, if the new covered auto is recovered after the theft and the actual selling price is lower than the wholesale value. O. False pretense means loss resulting from a person or entity causing you, your officers, shareholders or employees to voluntarily part with a covered auto or the title or other evidence of ownership of a covered auto by use of criminal trick, scheme or device. False Pretense excludes loss due to conversion or concealment of a covered auto committed by any person in lawful possession of such covered auto. P. Flood means rising surface water, waves, storm surge, spray, tides or tidal water, including rising, overflowing or breaking of boundaries of oceans, bays, lakes, ponds, reservoirs, rivers, streams, harbors, and similar bodies of water, or release of water therefrom. The term “surface water” means seepage, leakage, or influx of water (immediately derived from natural sources) through sidewalks, driveways, foundations, walls, basements or other floors, or through doors, windows or any other openings in such sidewalks, foundations walls or floors; and shall also include all water which backs up through sewers and drains. Flood does not include weather. Q. Insured dealer means a person or entity engaged in the business of selling autos and shown as a Named Insured on the Declarations or on any Evidence of Coverage issued with authority granted solely by us under this policy. R. Inventory means a covered auto that is neither a demonstrator nor a shop rental vehicle. S. Location means a physical property at which covered autos are held for sale, stored, or used in your business, and (a) which is shown on the Declarations or Evidence of Coverage, (b) which is acquired by you within 30 days preceding the loss, if we receive your written notice of the acquisition within such 30 day period, or (c) where you have moved covered autos for a maximum of 30 days to avoid a loss. If covered autos are in transit to or from such a physical property, or are at a physical property where you have moved them to avoid a loss, the term location in determining 00 01 03-2013 2  applicable "per location" Limits of Insurance and Deductibles refers to the physical property where the covered autos would otherwise be held for sale, stored, or used in your business. T. Loss means direct and accidental loss of or damage to covered autos resulting from a single cause or event. Loss does not include diminution in value. U. Manufacturer means the original equipment manufacturer and any distributor or upfitter that is not the insured dealer. V. New means that an auto is of the current model year or the immediately prior model year and has never been sold, leased, titled or registered. W. Occurrence means any one loss, disaster, casualty, or series of losses, disasters, or casualties, arising out of one event. When the term applies to loss or losses from the perils of tornado, cyclone, hurricane, windstorm, hail, flood, riot, riot attending a strike, civil commotion, vandalism, or malicious mischief, or a combination of any such perils and a comprehensive-general event not listed among such perils, one event shall be construed to be all losses arising during a continuous period of 72 hours. When the term applies to loss or losses from earthquake or from a combination of earthquake and any other comprehensive-general peril or flood, one event shall be construed to be all losses arising during a continuous period of 168 hours. X. Sale, sell, or sold means the completion of the transaction in accordance with the law of the state where the transaction occurs and must include: 1. The transfer of title or certificate of ownership for a covered auto; or 2. Payment in full for a covered auto; or 3. Execution of a financing or lease agreement on a covered auto. Y. Shop rental means a covered auto that is: 1. Provided to any person or entity whose vehicle has been left with you for service or repairs, whether or not a rental charge has been made; or 2. Used in the conduct of your business, but not as a demonstrator. Z. Total loss means a loss where the cost of repair of a covered auto plus its salvage value exceeds its wholesale value. AA. Total theft loss means a theft of an entire covered auto or multiple covered autos, whether ultimately recovered or not, unless the loss is a false pretense loss. BB. Weather limit means the Weather Limit of Insurance shown on the Declarations or Evidence of Coverage. CC. Weather means any and all weather perils including hail, windstorm, sandstorm, weight of snow or ice, tornado, hurricane, tropical storm, tropical depression, and rain. Weather excludes flood and earthquake. DD. Wholesale value means: 1. The amount of the dealer invoice, minus finance and insurance charges, advertising expenses, and model changeover credit, for a new covered auto or new demonstrator which: a. Has not been damaged in a previous loss, b. Has not been registered or titled, c. Has an odometer reading of 7,500 miles or less, and d. Has not been used for any purpose other than road testing, dealer exchanges, transporting to or from conversion or upfitting facilities, or as a demonstrator. 2. For other than a new covered auto or new demonstrator, the lesser of: a. Your actual cost, exclusive of your overhead expenses, mileage, and wear and tear; or, 00 01 03-2013 3  b. The value as determined by us based on auction reports and dealer wholesale reports for a comparable auto in your area. Wholesale Value, as respects any covered auto, includes the cost of equipment and accessories permanently attached to the covered auto. PART II - COVERAGES A. COVERAGE. When a premium is shown in the Declarations or Evidence of Coverage, during the coverage period and in the coverage territory, coverage is provided under: 1. Comprehensive Coverage. We will pay for loss (including economic loss in a total theft loss), unless otherwise limited or excluded, to a covered auto from any cause except loss due to collision. If the cause is false pretense, we will pay for loss, unless otherwise limited or excluded, if the criminal trick, scheme, or device consists of: a. The use of a check, draft, or other similar negotiable instrument that is forged, counterfeit, drawn on a non- existent account, or drawn on an account closed prior to acceptance by you for a covered auto; or b. The use of fraudulent or forged identification or signature of an applicant or customer on a credit application or finance, lease, or rental agreement for a covered auto; or c. Your acquiring an auto from a seller who did not have legal title, including an auto that is stolen or which has a title that is counterfeit, forged, altered, or is otherwise invalid. 2. Collision Coverage. We will pay for loss (including economic loss resulting from collision), unless otherwise limited or excluded, to a covered auto caused by collision. B. EXCLUSIONS. 1. We will not pay for a loss caused by or resulting from any of the following. Any such loss is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. a. Nuclear hazard: (1) The explosion of any weapon employing atomic fission or fusion; or (2) Nuclear reaction or radiation, or radioactive contamination, however caused. b. War or military action: War, including undeclared or civil war; or warlike action by a military force, including action in hindering or defending against an actual or expected attack by any government, sovereign, or other authority using military personnel or other agents; or insurrection, rebellion, revolution, or usurped power, or action taken by governmental authority in hindering or defending against any of these. c. Due to conversion or concealment of a covered auto committed by any person in lawful possession of such covered auto; d. Caused by the uncollectability of any check, draft, or other negotiable instrument, except for false pretense loss; e. Caused by an undisclosed lien on an auto you acquire; f. Caused by the transfer of a covered auto or covered autos to a person or entity (i) who is in the business of buying, selling, or leasing autos, and (ii) with whom you have a business relationship or had a prior business relationship; g. Caused by failure or refusal of a person or entity to make payments agreed upon in a lease, rental agreement, or purchase agreement; h. Caused by the inability of a purchaser to secure credit; i. Caused by a person or entity’s insolvency, bankruptcy, or similar federal or state proceeding, including the assignment or seizure of assets for the benefit of creditors; j. Arising out of infidelity or dishonesty of an employee; or 00 01 03-2013 4  k. If there is collusion between you or any of your officers, shareholders, or employees and anyone causing the loss. 2. We will not pay for: a. Your expected profit; b. Loss of use of a covered auto; or c. The reduction in value of a covered auto as a consequence of decisions or actions of the manufacturer of the covered auto. This includes any decision to void the manufacturer’s warranty and any decision to remove a covered auto from the stream of commerce. 3. We will not pay for Economic Loss: a. if the covered auto is a shop rental; b. if the covered auto is not a private passenger vehicle or truck with a gross vehicle weight of 11,500 pounds or less; or c. if the covered auto is sold to any entity in which you have a financial interest, any of your shareholders, officers, or employees, any shareholders, officers, or employees of an entity in which you have a financial interest, or a relative of any such shareholder, officer, or employee. 4. We will not pay for loss caused by or resulting from any of the following unless caused by another loss that is covered by this insurance: a. Wear and tear, freezing mechanical or electrical breakdown, improper service; or b. Blowouts, punctures or other road damage to tires. 5. We will not pay for loss to any of the following: a. Any covered auto loaned, leased or rented to others, but this exclusion does not apply to a demonstrator or a covered auto loaned, leased or rented to one of your customers: (1) While his or her auto is left with you for service or repair; or (2) For a term of two months or less when a covered auto temporarily replaces the customer’s auto because of loss or while the customer is awaiting delivery of an auto purchased or leased from you. b. Any covered auto while used, or while being prepared for use, in any professional or organized racing, acceleration, or demolition contest, stunting activity or similar event; c. Tape decks or other sound or video reproducing equipment, unless permanently installed in a covered auto; d. Tapes, records, discs or similar audio, visual or data reproduction media; e. Sound receiving equipment designed for two-way mobile radio or telephone or scanning monitor receiver, including antennas and other accessories, unless permanently installed in a covered auto; f. Equipment designed or used for the detection or location of radar or laser speed measuring devices; g. Any covered auto after it has been sold and delivered to a customer under a sale or lease agreement; or h. Personal property including personal effects or apparel in a covered auto. 6. In the situation where your inventory financing source is not the Named Insured shown on the Declarations, we will not pay under this policy for: a. Loss to any auto that is insured in connection with your automobile inventory floor plan agreement or financing source; b. Application of deductible under the insurance provided in connection with your automobile inventory floor plan agreement or financing source; or 00 01 03-2013 5  c. Loss excluded under the insurance provided in connection with your automobile inventory floor plan agreement or financing source. This exclusion does not apply to the amount of loss attributable to equipment permanently affixed to the covered auto and not insured in connection with your automobile inventory floor plan agreement or financing source. 7. We will not pay for diminution in value. C. LIMITS OF INSURANCE. 1. Limit per auto. Regardless of the cause of loss or any limit applicable to all covered autos in a loss, the most we will pay for loss to any single covered auto is the lesser of (a) the Maximum Limit Per Vehicle shown on the Declarations or Evidence of Coverage, or (b) the wholesale value if the covered auto is a total loss, or (c) the actual repair cost if the covered auto is not a total loss. 2. Comprehensive - General. Regardless of the number of covered autos involved in the loss, the most we will pay under Comprehensive Coverage for all loss (unless otherwise limited or excluded) at a single location from a single comprehensive-general occurrence is the Comprehensive-General Limit; provided that, if at the time of the loss the wholesale value is greater than the Comprehensive-General Limit, then we will pay for all comprehensive-general loss up to the wholesale value at the time of the loss, but not more than 125% of the Comprehensive-General Limit, if: a. The wholesale value can be substantiated by your books; and, b. The Comprehensive-General Limit is equal to or greater than the average monthly wholesale value of all covered autos, according to your books, for the twelve (12) months immediately prior to your Coverage Effective date as shown on the Declarations or Evidence of Coverage.. The most we will pay under Comprehensive Coverage for economic loss is the lesser of $2,500 or 50% of the recognized mileage usage rate published in Federal taxation guidelines for the miles added to the odometer as a result of a total theft loss. 3. Comprehensive - Flood and Earthquake. Regardless of the number of covered autos involved in the loss, the most we will pay under Comprehensive Coverage for (i) all loss from a single flood or earthquake occurrence at a single location, or (ii) all loss from multiple flood or earthquake occurrences in a single coverage period at a single location, is the Flood or Earthquake Limit of Insurance, respectively, shown on the Declarations or Evidence of Coverage. 4. Comprehensive - False Pretense. a) Regardless of the number of covered autos involved in the loss, the most we will pay for all loss from a single false pretense occurrence is the False Pretense Per Occurrence Limit of Insurance shown on the Declarations or Evidence of Coverage. b) Regardless of the number of covered autos or the number of false pretense occurrences, the most we will pay for all false pretense loss in the coverage period is the False Pretense Aggregate Limit of Insurance shown on the Declarations or Evidence of Coverage. 5. Collision. a) The most we will pay under Collision Coverage to repair a covered auto is the actual repair cost. b) The most we will pay under Collision Coverage for a covered auto that is a total loss is the wholesale value. c) The most we will pay under Collision Coverage for economic loss is the lesser of $2,500 or 10% of the wholesale value. d) The most we will pay under Collision Coverage for all loss from a single collision event is the Collision Per Occurrence Aggregate Limit of Insurance shown on the Declarations or Evidence of Coverage. D. DEDUCTIBLES. For each covered auto, our obligation to pay for, repair, return or replace damaged or stolen property will be reduced by each applicable Per Auto Deductible shown on the Declarations or Evidence of Coverage. Additionally, the following provisions apply: 00 01 03-2013 6  1. Regardless of the number of covered autos involved in the loss, where a Per Occurrence Aggregate Deductible is shown on the Declarations or Evidence of Coverage, it is the maximum deductible applicable for all loss in any one occurrence. 2. Where a Per Occurrence Aggregate Deductible is shown on the Declarations or Evidence of Coverage, it applies separately to each location. E. COMBINATION OF PERILS. In the event of a loss or losses resulting from a combination of (i) flood and earthquake, (ii) flood and any comprehensive-general peril, (iii) earthquake and any comprehensive- general peril, or (iv) flood, earthquake and any comprehensive-general peril: 1. all of the loss or losses will be treated as a single occurrence; 2. the most we will pay is the Per Occurrence Limit for Flood, Earthquake, or Comprehensive-General, whichever is least; 3. if the Flood Limit is applied, the Flood Deductible will be applied; if the Earthquake Limit is applied, the Earthquake Deductible will be applied; if the Comprehensive-General Limit is applied, the Comprehensive-General or Comprehensive-General-Weather Deductible, whichever is greater, will be applied; 4. if the Flood Limit is applied, the occurrence will be treated as flood for the purpose of applying the Coverage Period Limit in case of other flood losses in the same coverage period; if the Earthquake Limit is applied, the occurrence will be treated as earthquake for the purpose of applying the Coverage Period Limit in case of other earthquake losses in the same coverage period; and if the Comprehensive-General Limit is applied, the occurrence will be treated as comprehensive-general for the purpose of applying any Coverage Period Limit in case of other comprehensive-general losses in the same coverage period. PART III - CONDITIONS A. LOSS CONDITIONS. 1. Abandonment. There can be no abandonment of any covered auto to us. 2. Appraisal. If you and we disagree on the amount of loss, either may demand an appraisal of the loss. In that event, each party will select an appraiser. The two appraisers will select an impartial umpire. The appraisers will state separately the actual cash value, the wholesale value, and/or the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will: a. Pay its chosen appraiser; and b. Bear the other expenses of the appraisal and umpire equally. If we submit to an appraisal, we will still retain our right to deny the claim. 3. Duties in The Event of a Loss. In the event of a loss: a. You must give us: (1) Notice of the loss, or of an occurrence that may lead to a claim under this policy, as soon as reasonably possible but not more than 180 days after the date of the loss or occurrence; (2) A description of each covered auto involved in the loss and of how, when and where the loss occurred. b. You must cooperate with us in: (1) The investigation or settlement of the loss; and (2) The investigation, settlement, or conduct of any suit. You shall not, except at your own expense, voluntarily make any payment, assume any obligation, or incur any expense. c. You must: (1) Notify the appropriate law enforcement authority and file a complaint if a law may have been broken; (2) Take all reasonable steps to protect the covered auto from further loss. If feasible, set the covered auto aside and in the best possible order for examination. Also keep a record of expenses for emergency and 00 01 03-2013 7  temporary repairs for consideration in the settlement of the loss. Such expenses will not increase the Limit of Insurance. (3) Give us a complete inventory of the covered autos, if we request one. (4) Permit us to: i. Inspect the property and records proving the loss; ii. Take samples of damaged property for inspection, testing and analysis; and iii. Inspect and appraise the covered auto before its repair or disposition. (5) Under False Pretense Coverage: iv. File a complaint with the appropriate law enforcement authorities as soon as practicable; v. Obtain a warrant for the arrest of anyone causing the loss and /or agree to prosecute; and vi. Make every reasonable effort to recover the covered auto when it is located. (6) Send us a signed, sworn, statement of loss containing the information we request to investigate the loss within 60 days after our request. We will supply you with the necessary forms. Additionally, you must hold us harmless against any and all claims made by other parties at interest due to any neglect or failure on your part to comply fully with the conditions of this policy. (7) When filing a statement of loss relating to an occurrence to which either the 72-hour or 168-hour provision in the definition of occurrence (PART I - DEFINITIONS, W.) applies, you may elect the moment at which the 72-hour or 168-hour period shall be deemed to have commenced, which may not be earlier than the time when the first loss to covered autos occurs. 4. Loss Payment. In the event of loss covered by this policy, at our option, we may: a. Pay for, repair or replace damaged or stolen property; b. Return covered autos which are stolen, at our expense, and pay for the actual repair cost to the covered auto; or c. Take all or any part of the damaged or stolen covered auto at an agreed or appraised value. 5. Recovered Property. If either you or we recover any property after loss settlement, the party securing the recovery must give the other prompt notice. If we recover the property, at your option, the property will be returned to you. You must then return to us the amount we paid for the property. We will pay recovery expenses and the expenses to repair the recovered property, subject to PART II – COVERAGES, C. LIMITS OF INSURANCE. 6. Legal Action Against Us. You may not bring a legal action against us under this policy until you have fully complied with all terms and conditions of this policy. 7. Our Right To Recover From Others. If we make payment, we are entitled to recover what we paid from other parties. If any person to or for whom we make payment under this policy has rights to recover damages from another, those rights are transferred to us. This person or organization must do everything necessary to secure our rights and must do nothing that would impair them. B. GENERAL CONDITIONS 1. Premiums a. Each Named Insured identified on the Declarations or any Evidence of Coverage will be responsible for the payment of all premiums with respect to that Named Insured's covered autos, and will be the payee for any return premiums we pay with respect to such covered autos; and, b. All premiums shall be computed in accordance with our rates and rules then in effect and paid to us at the time the statement is rendered. 2. Coverage Period, Coverage Territory. We will only pay for loss or damage to covered autos occurring during the coverage period shown on the Declarations or Evidence of Coverage and within the coverage territory. 3. No Benefit To Bailee. We will not recognize any assignment or grant any coverage for the benefit of any person or organization holding, storing or transporting covered autos for a fee regardless of any other provision of this policy. 00 01 03-2013 8  4. Assignment Or Withdrawal Of Damaged Goods. You may not assign this policy or rights under this policy without our prior written consent, except that you may assign your right to receive payment for loss to the manufacturer of the covered auto(s) involved in a covered loss. Assignment will not change the limits of insurance under this policy, and this policy will not cover the loss incurred because of the manufacturer’s withdrawal of the covered auto from the market. 5. Changes. This policy contains all the agreements between you and us concerning the insurance afforded. You are authorized to make changes in the terms of this policy only with our written consent. If a change requires a premium adjustment, we will adjust the premium as of the effective date of the change. This policy’s terms can be amended or waived only by endorsement issued by us and made a part of this policy. 6. Examination Of Your Books And Records. We may examine and audit your books and records as they relate to this policy at any time during the policy period and up to three years afterward. We may, at our discretion, adjust your premium retroactively based upon the results of such examinations and audits. 7. Cancellation. a. The first Named Insured shown on the Declarations may cancel this policy by mailing or delivering to us, and to each insured dealer, written notice of cancellation at least 60 days before the effective date of cancellation. Each insured dealer may cancel its own insurance by mailing or delivering to us written notice of cancellation at least 10 days before the effective date of cancellation. b. We may cancel this policy by mailing or delivering notice to the first Named Insured shown in the Declarations and all insured dealers, and we may cancel the insurance of any insured dealer by mailing or delivering to such first Named Insured and insured dealer, written notice of cancellation at least: (1) 10 days before the effective date of cancellation if we cancel for nonpayment of premium; or (2) 30 days before the effective date of cancellation if we cancel for any other reason. c. We will mail or deliver our notice to your last mailing address known to us. Notice by delivery shall be effective when made; notice by mailing shall be effective three (3) days after mailing. d. If notice is mailed, proof of mailing will be sufficient proof of notice. e. Notice of cancellation will state the effective date of cancellation. The coverage period will end on that date. f. If we cancel, the return premium will be pro rata. If you cancel, the return premium will be short rate. The cancellation will be effective even if we have not made or offered a refund. 8. Bankruptcy. Bankruptcy or insolvency of you or your estate will not relieve us of any obligations under this policy. 9. Inspections and Surveys. We have the right, but are not obligated to: a. Make inspections and surveys at any reasonable time; b. Give you reports on the conditions we find; and c. Recommend changes. Any inspections, surveys, reports or recommendations relate only to insurability and the premiums to be charged. We do not make safety inspections. We do not undertake to perform the duty of any person or organization to provide for the health or safety of workers or the public. We do not warrant that conditions: a. Are safe or healthful; or b. Comply with