Attachment E AMAIT 2024 - 2025 Cincinnati 1m Policy.pdf

The Cincinnati Insurance Company A Stock Insurance Company

Headquarters: 6200 S. Gilmore Road, Fairfield, OH 45014-5141 Mailing address: P.O. Box 145496, Cincinnati, OH 45250-5496 www.cinfin.com 513-870-2000

COMMON POLICY DECLARATIONS

POLICY NUMBER

NAMED INSURED

ADDRESS

(Number & Street, Town, County, State & Zip Code)

Previous Policy Number:

Billing Method:AGENCY BILL

EBA 068 30 12

STATE OF ARKANSAS PARTICIPATING STATE AGENCY ENTITIES

REFER TO IA905

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LITTLE ROCK, AR 72202-2089

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LITTLE ROCK, AR

ORGANIZATION (ANY OTHER)

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FORMS APPLICABLE TO ALL COVERAGE PARTS:

COMMON POLICY CONDITIONSIL0017 11/98

SUMMARY OF PREMIUMS CHARGEDIA102A 09/08

NAMED INSURED SCHEDULEIA905 02/98

CERTIFIED ACTS AND OTHER ACTS OF TERRORISM EXCLUSION ADVISORY

NOTICE TO POLICYHOLDERS

IA4513 06/20

NOTICE OF PRIVACY PRACTICESIA4521 03/20

NOTICE TO POLICYHOLDERSIP446 08/01

EXCLUSION OF CERTIFIED ACTS AND OTHER ACTS OF TERRORISMIA319 01/15

WAR EXCLUSIONIA325 01/23

ARKANSAS CHANGES - CANCELLATIONIA4107AR 10/22

SIGNATURE ENDORSEMENTIA4338 05/11

ARKANSAS NOTICEIL0909 03/98

ARKANSAS NOTICEIP403AR 03/20

BUSINESS AUTO COVERAGE PART DECLARATIONSAA505 03/06

Countersigned By (Date) (Authorized Representative)

Page ofIA 509 01 12

EBA 068 30 12

1 1

07-10-2024 11:05

Attachment E

IL 00 17 11 98 Copyright, Insurance Services Office, Inc., 1998

COMMON POLICY CONDITIONS

All Coverage Parts included in this policy are subject to the following conditions.

A. Cancellation

1. The first Named Insured shown in the

Declarations may cancel this policy by mailing or delivering to us advance written notice of cancellation.

2. We may cancel this policy by mailing or delivering to the first Named Insured writ-ten notice of cancellation at least:

a. 10 days before the effective date of cancellation if we cancel for nonpay-ment of premium; or

b. 30 days before the effective date of cancellation if we cancel for any other reason.

3. We will mail or deliver our notice to the first Named Insured's last mailing address known to us.

4. Notice of cancellation will state the effec-tive date of cancellation. The policy pe-riod will end on that date.

5. If this policy is cancelled, we will send the first Named Insured any premium refund due. If we cancel, the refund will be pro rata. If the first Named Insured cancels, the refund may be less than pro rata. The cancellation will be effective even if we have not made or offered a refund.

6. If notice is mailed, proof of mailing will be sufficient proof of notice.

B. Changes This policy contains all the agreements be-tween you and us concerning the insurance af-forded. The first Named Insured shown in the Declarations is authorized to make changes in the terms of this policy with our consent. This policy's terms can be amended or waived only by endorsement issued by us and made a part of this policy.

C. 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.

D. Inspections and Surveys

1. We have the right to:

a. Make inspections and surveys at any time;

b. Give you reports on the conditions we find; and

c. Recommend changes.

2. We are not obligated to make any inspec-tions, surveys, reports or recommenda-tions and any such actions we do under-take relate only to insurability and the premiums to be charged. We do not make safety inspections. We do not un-dertake to perform the duty of any person or organization to provide for the health or safety of workers or the public. And we do not warrant that conditions:

a. Are safe or healthful; or

b. Comply with laws, regulations, codes or standards.

3. Paragraphs 1. and 2. of this condition ap-ply not only to us, but also to any rating, advisory, rate service or similar organiza-tion which makes insurance inspections, surveys, reports or recommendations.

4. Paragraph 2. of this condition does not apply to any inspections, surveys, reports or recommendations we may make rela-tive to certification, under state or munici-pal statutes, ordinances or regulations, of boilers, pressure vessels or elevators.

E. Premiums The first Named Insured shown in the Declara-tions:

1. Is responsible for the payment of all pre-miums; and

2. Will be the payee for any return premiums we pay.

F. Transfer of Your Rights and Duties Under this Policy Your rights and duties under this policy may not be transferred without our written consent except in the case of death of an individual named insured.

If you die, your rights and duties will be trans-ferred to your legal representative but only while acting within the scope of duties as your legal representative. Until your legal represen-tative is appointed, anyone having proper tem-porary custody of your property will have your rights and duties but only with respect to that property.

ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED

IA 102 A 09 08

SUMMARY OF PREMIUMS CHARGED

Attached to and forming part of POLICY NUMBER: Effective Date:

Named Insured:

THIS POLICY CONSISTS OF THE FOLLOWING COVERAGE

PARTS FOR WHICH A PREMIUM CHARGE IS INDICATED

Commercial Property Coverage Part $ Commercial General Liability Coverage Part $ Commercial Auto Coverage Part $ Commercial Umbrella / Excess Liability Coverage Part $

Terrorism Coverage $ Installment Charge $

PAYMENTS

First Remaining Installment Installment(s)

Automobile Coverages, Employers Liability, Employment Practices Liability Coverage, Professional Liability Coverage, Terrorism Coverage and / or Wrongful Acts Coverage, if included in the policy, are subject to Annual Adjustment of rates and premium on each anniversary of the policy.

Commercial Umbrella and Excess Liability, if included in the policy, may be subject to Annual Adjustment of premium on each anniversary. Refer to the Commercial Umbrella or Excess Liability Coverage Part Declarations form to see if this is applicable.

EBA 068 30 12 07-01-2024

STATE OF ARKANSAS PARTICIPATING STATE AGENCY ENTITIES

593,423

EXCLUDE

ANNUAL TOTAL 593,443

QUARTERLY 148,363 148,360

IA 905 02 98

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

NAMED INSURED SCHEDULE

This Schedule supplements the Declarations.

SCHEDULE

Named Insured:

STATE OF ARKANSAS PARTICIPATING STATE AGENCY ENTITIES

105 - SOUTHERN ARKANSAS UNIVERSITY

120 - ARKANSAS STATE UNIVERSITY - BEEBE

125A - ARKANSAS STATE UNIVERSITY - JONESBORO

128 - ARKANSAS STATE UNIVERSITY - MOUNTAIN HOME

129 - ARKANSAS STATE UNIVERSITY - NEWPORT

130 - ARKANSAS TECH UNIVERSITY

165 - UNIVERSITY OF CENTRAL ARKANSAS

170 - EAST ARKANSAS COMMUNITY COLLEGE

177 - ARKANSAS STATE UNIVERSITY - MID SOUTH

185 - NORTH ARKANSAS COLLEGE

193 - SOUTH ARKANSAS COMMUNITY COLLEGE

198 - NORTHWEST ARKANSAS COMMUNITY COLLEGE

311 - DISABILITY DETERMINATION FOR SOCIAL SECURITY ADMINISTRATION

375 - ARKANSAS TEACHER RETIREMENT SYSTEM

425 - ARKANSAS INSURANCE DEPARTMENT

450 - PUBLIC SERVICE COMMISSION

582 - RIVERSIDE VO-TECH SCHOOL

613 - DFA ARKANSAS OFFICE OF LOTTERY

675 - BLACK RIVER TECHNICAL COLLEGE

700 - DIVISION OF HIGHER EDUCATION

990 - ARKANSAS CRIME INFORMATION CENTER

995 - ARKANSAS DEPARTMENT OF EMERGENCY MANAGEMENT

9902 - DEPARTMENT OF COMMERCE-CABINET

9913 - DEPARTMENT OF PUBLIC SAFETY CABINET

Includes copyrighted material of Insurance IA 4513 06 20 Services Office, Inc., with its permission. Page 1 of 1

CERTIFIED ACTS AND OTHER ACTS OF TERRORISM

EXCLUSION ADVISORY NOTICE TO POLICYHOLDERS

No coverage is provided by this notice nor can it be construed to replace any provision of your policy. You should read your policy and review your Declarations Page for complete information on the coverages you are provided. If there is any conflict between the policy and this Advisory Notice to Policyholders, THE

PROVISIONS OF YOUR POLICY SHALL PREVAIL.

The purpose of this notice is to evidence your rejection of coverage for Certified Acts and Other Acts of Terrorism. At your request, your policy contains an exclusion for Certified Acts and Other Acts of Terrorism.

For information regarding the availability of coverage for Certified Acts and Other Acts of Terrorism, subject to an additional premium, please contact your insurance agent.

IA 4521 03 20 Page 1 of 1

NOTICE OF PRIVACY PRACTICES

For additional information on our privacy policies, including state specific information, please visit https://www.cinfin.com/privacy-policy.

IP 446 08 01

THE CINCINNATI INSURANCE COMPANY

THE CINCINNATI CASUALTY COMPANY

THE CINCINNATI INDEMNITY COMPANY

NOTICE TO POLICYHOLDERS

Please be advised that in your application for insurance you disclosed information to The Cincinnati Insurance Company, The Cincinnati Casualty Company and The Cincinnati Indemnity Company. The information dis-closed in the application and all information subsequently collected by any of these companies may be shared among all three.

Includes copyrighted material of ISO Properties, Inc. and American Association

IA 319 01 15 of Insurance Services, Inc., with their permission. Page 1 of 3

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

EXCLUSION OF CERTIFIED ACTS AND

OTHER ACTS OF TERRORISM

This endorsement modifies insurance provided under the following:

All Commercial Lines Coverage Parts, Coverage Forms, Policies and Endorsements except Medi-cal Professional Liability (professional liability forms insuring dentists, optometrists, nurses, and nursing homes, among others)

A. The following definitions are added with re-spect to the provisions of this endorsement:

1. "Certified act of terrorism" means an act that is certified by the Secretary of the Treasury, in accordance with the provi-sions of the federal Terrorism Risk Insur-ance Act, to be an act of terrorism pursu-ant to the federal Terrorism Risk Insur-ance Act. The criteria contained in the Terrorism Risk Insurance Act for a "certi-fied act of terrorism" include the following:

a. 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 Insur-ance Act; and

b. 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 popula-tion of the United States or to influ-ence the policy or affect the conduct of the United States Government by coercion.

2. "Other act of terrorism" means a violent act or an act that is dangerous to human life, property or infrastructure that is committed by an individual or individuals and that appears to be part of an effort to coerce the civilian population or to influ-ence the policy or affect the conduct of any government by coercion, and the act is not a "certified act of terrorism".

B. The following exclusion is added:

EXCLUSION OF CERTIFIED ACTS AND

OTHER ACTS OF TERRORISM

We will not pay for any loss, injury or damage caused directly or indirectly by a "certified act of terrorism" or an "other act of terrorism".

Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss.

But with respect to an "other act of terrorism", this exclusion applies only when one or more of the following are attributed to such act:

1. The terrorism is carried out by means of the dispersal or application of pathogenic or poisonous biological or chemical mate-rials;

2. Pathogenic or poisonous biological or chemical materials are released, and it appears that one purpose of the terrorism was to release such materials;

3. The total of insured damage to all types of property in the United States, its territories and possessions, Puerto Rico and Can-ada exceeds $25,000,000. In determining whether the $25,000,000 threshold is ex-ceeded, we will include all insured dam-age sustained by property of all persons and entities affected by the terrorism and business interruption losses sustained by owners or occupants of the damaged property. For the purpose of this provi-sion, insured damage means damage that is covered by any insurance plus damage that would be covered by any insurance but for the application of any terrorism ex-clusions. Multiple incidents of "other acts of terrorism" which occur within a 72-hour period and appear to be carried out in concert or to have a related purpose or common leadership will be deemed to be one incident;

4. Fifty or more persons sustain death or se-rious physical injury. For the purposes of this provision, serious physical injury means:

a. Physical injury that involves a sub-stantial risk of death;

b. Protracted and obvious physical dis-figurement; or

c. Protracted loss of or impairment of the function of a bodily member or organ; or

IA 319 01 15 of Insurance Services, Inc., with their permission. Page 2 of 3

5. The terrorism involves the use, release or escape of nuclear materials, or directly or indirectly results in nuclear reaction or ra-diation or radioactive contamination.

Paragraphs B.3. and B.4. immediately preced-ing, describe the threshold used to measure the magnitude of an "other act of terrorism" and the circumstances in which the threshold will apply, for the purpose of determining whether this Exclusion will apply to that inci-dent. When the Exclusion applies to an "other act of terrorism", there is no coverage under this Coverage Part, Coverage Form, Policy or Endorsement, except as provided in this En-dorsement.

However, Paragraph B.4. immediately preced-ing, is not to be used as a threshold to meas-ure the magnitude of an "other act of terror-ism" for the purposes of determining if this ex-clusion applies to a Commercial Property Coverage Part, Commercial Inland Marine Coverage Part, Machinery and Equipment Coverage Part, Commercial Crime Coverage Form, Commercial Crime Policy, Employee Theft and Forgery Policy, Farm Property Cov-erage Part, Government Crime Coverage Form, Government Crime Policy, Standard Property Policy, or Section I of the Busines-sowners Package Policy.

C. Exception Covering Certain Fire Losses The following modifies insurance provided un-der the following: Commercial Inland Marine Coverage Part, Commercial Property Cover-age Part, Farm Coverage Part and Standard Property Policy:

If a "certified act of terrorism" or an "other act of terrorism" causes fire damage to property that is subject to the Standard Fire Policy in a state that utilizes the Standard Fire Policy as its minimum fire coverage standard, we will pay for the loss or damage caused by that fire.

Such coverage for fire applies only to direct loss or damage by fire to Covered Property.

Therefore, for example, the coverage does not apply to insurance provided under Business Income and/or Extra Expense coverages, or to the Legal Liability Coverage Form or the Leasehold Interest Coverage Form.

With respect to fire resulting from any one or more "certified acts of terrorism" under the federal Terrorism Risk Insurance Act, we will not pay any amounts for which we are not re-sponsible under the terms of that Act (includ-ing subsequent action of Congress pursuant to the Act) due to the application of any clause which results in a cap on our liability for pay-ments for terrorism losses.

This Section C. does not apply to:

1. A Coverage Part for a "certified act of ter-rorism" or "other act of terrorism" that oc-curs in a state that allows an exception for fire resulting from terrorism; or

2. An Inland Marine Coverage Part for a "certified act of terrorism" or "other act of terrorism" that occurs in a state that al-lows a commercial inland marine excep-tion, to its Standard Fire Policy minimum fire cover-age regulations.

D. Exception Covering Minimum Financial Responsibility The following applies to the Business Auto Coverage Form, Business Auto Physical Damage Coverage Form, Garage Coverage Form, Motor Carrier Coverage Form, Single Interest Automobile Physical Damage Insur-ance Policy and Truckers Coverage Form if they are included in, or are part of, this Policy and if the "certified act of terrorism" or "other act of terrorism" causes loss in a state that re-quires compulsory or financial responsibility minimum limits apply to excluded acts of ter-rorism:

The exclusion stated in Section B. of this en-dorsement does not apply to:

1. Liability or Personal Injury Protection Coverage, but only up to the state com-pulsory or financial responsibility law min-imum limits of insurance for each cover-age; and

2. Uninsured and/or Underinsured Motorists Coverage, if applicable, but only up to the minimum statutory permitted limits of in-surance for each coverage.

E. Application of Other Exclusions The terms and limitations of any terrorism ex-clusion, or the inapplicability or omission of a terrorism exclusion, do not serve to create coverage for any loss which would otherwise be excluded under this Coverage Part, Cover-age Form, Policy or endorsement such as losses excluded by:

1. Exclusions that address war, warlike ac-tion, insurrection, rebellion, revolution, mil-itary action, nuclear hazard, nuclear mate-rials, nuclear reaction, radiation, or radio-active contamination;

2. Exclusions that address pollutants, con-tamination, deterioration, fungi or bacteria;

or

3. Any other exclusion, IA 319 01 15 of Insurance Services, Inc., with their permission. Page 3 of 3 regardless if the "certified act of terrorism" or "other act of terrorism" contributes concur-rently or in any sequence to the loss, injury or damage.

F. Conformity With Statute If any terms or conditions of this endorsement are in conflict with the laws of the jurisdiction under which this policy is construed, then such terms and conditions will be deemed changed to conform with such laws, but only to the ex-tent that such terms and conditions are other-wise covered by the Coverage Part, Coverage Form, Policy or Endorsement to which this en-dorsement applies.

G. Supersession The exclusions for acts of terrorism in this en-dorsement supersede any offers of terrorism coverage.

H. Sunset Clause If the federal Terrorism Risk Insurance Act ex-pires or is repealed, then this endorsement is null and void for any act of terrorism except "other acts of terrorism" that takes place after the expiration or repeal of the Act.

IA 325 01 23 Services Office, Inc., with its permission. Page 1 of 2

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

WAR EXCLUSION

This endorsement modifies insurance provided under the following:

ALL COVERAGE FORMS FORMING A PART OF THE POLICY

A. The following exclusion:

1. Replaces any War, War and Military Ac-tion, or War or Military Action exclusion included in any other Coverage Form, Coverage Part or endorsement forming a part of the policy to which this endorse-ment is attached; and

2. Is added to any other Coverage Form, Coverage Part, insuring agreement in-cluded therein or endorsement forming a part of the policy to which this endorse-ment is attached which does not already include a War, War and Military Action, or War or Military Action exclusion.

War This insurance does not apply to:

Any form of loss, damage, cost, expense or liability for damages arising directly or indirectly from:

a. "War" and "warlike action", including undeclared or civil "war" and "cyber hostilities";

b. Hostile action, including action in hin-dering or defending against an actual or expected attack, by any state, government, or sovereign using mili-tary personnel or other "agents"; or

c. Insurrection, rebellion, revolution, usurped power, political violence or action taken by a state or govern-ment actor in hindering or defending against any of these, including "cyber hostilities" in connection with any of the foregoing.

The attribution of an action will be deter-mined by relying on reasonable evidence such as, but not limited to:

(1) Statements by an agency or de-partment of the United States government;

(2) Statements by an international group of which the United States is a member, such as the United Nations or the North Atlantic Treaty Organization, or any member of such an international group; or

(3) Statements by a "recognized commercial authority".

This exclusion applies notwithstanding any-thing to the contrary in this policy or any ap-pendix or endorsement added to this policy.

B. The following definitions are hereby added with respect to the exclusion in Section A. of this endorsement.:

1. "Agents" means any person, entity, organ-ization or collection of persons, entities or organizations that have at any time been associated with or designated as having worked with or acted on behalf of any state, government, or sovereign.

The attribution of the actors’ status as "agents" will be determined by relying on reasonable evidence such as, but not lim-ited to:

a. Statements by an agency or depart-ment of the United States govern-ment;

b. Statements by an international group of which the United States is a mem-ber, such as the United Nations or the North Atlantic Treaty Organiza-tion, or any member of such an inter-national group; or

c. Statements by a "recognized com-mercial authority".

2. "Computer system" means any computer or network of computers or computer sys-tems, hardware, software, communica-tions system, electronic device (including but not limited to, smart phone, laptop, tablet, wearable device), server, cloud in-frastructure or microcontroller including any configuration of the aforementioned and including any associated input, out-put, code, program, data, data storage device, networking equipment or back up facility.

3. "Cyber hostilities" means the use of a "computer system" that causes disruption or harm.

IA 325 01 23 Services Office, Inc., with its permission. Page 2 of 2

4. "Recognized commercial authority" means a business that provides infor-mation technology security or forensics services, including, but not limited to:

a. Symantec;

b. Mandiant;

c. Microsoft;

d. Apple;

e. Cisco; or

f. IBM.

5. "War" or "warlike action":

a. Means physical combat, a state of armed conflict, or "cyber hostilities" engaged in by:

(1) Any state, government, or sov-ereign; or

(2) "Agents" of a state, government, or sovereign, against any other:

(a) State, government, or sovereign, including an agency or depart-ment thereof; or

(b) Person or entity targeted by such physical combat, armed conflict, or "cyber hostilities"; and

b. Includes any collateral loss, damage, cost, expense or liability for damages of any nature arising out of the physi-cal combat, armed conflict, or "cyber hostilities" or any response to such physical combat, armed conflict, or "cyber hostilities".

IA 4107 AR 10 22 Services Office, Inc., with its permission. Page 1 of 2

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ARKANSAS CHANGES - CANCELLATION AND NONRENEWAL

This endorsement modifies insurance provided under the following:

CINCINNATI CYBER DEFENSE™ COVERAGE PART

CINCINNATI DATA DEFENDER™ COVERAGE PART

CINCINNATI NETWORK DEFENDER™ COVERAGE PART

CLAIMS-MADE EXCESS LIABILITY COVERAGE PART

COMMERCIAL AUTO COVERAGE PART

COMMERCIAL GENERAL LIABILITY COVERAGE PART

COMMERCIAL INLAND MARINE COVERAGE PART

COMMERCIAL PROPERTY COVERAGE PART

COMMERCIAL UMBRELLA LIABILITY COVERAGE PART

CONTRACTOR'S ERRORS AND OMISSIONS COVERAGE FORM - CLAIMS-MADE

CONTRACTORS' LIMITED POLLUTION LIABILITY COVERAGE PART

CRIME AND FIDELITY COVERAGE PART

EMPLOYEE BENEFIT LIABILITY COVERAGE PART

EMPLOYMENT PRACTICES LIABILITY COVERAGE PART

EXCESS LIABILITY COVERAGE PART

EXCESS WORKERS COMPENSATION AND EMPLOYERS LIABILITY

FARM COVERAGE PART

GOLF COURSE CHEMICAL APPLICATION LIMITED LIABILITY COVERAGE PART

HOLE-IN-ONE COVERAGE PART

LIQUOR LIABILITY COVERAGE PART

MACHINERY AND EQUIPMENT COVERAGE PART

POLLUTION LIABILITY COVERAGE PART

PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART

PROFESSIONAL LIABILITY COVERAGE PART

A. Paragraph 2. of the Cancellation Common Policy Condition is replaced by the following:

2.a. Subject to Paragraph 2.b., we may can-cel this policy by mailing or delivering to the first Named Insured and any lienholder or loss payee named in the policy written notice of cancellation at least:

(1) 10 days before the effective date of cancellation, stating the reason for cancellation, if we cancel for non-payment of premium; or

(2) 20 days before the effective date of cancellation if we cancel for any other reason.

b. The following applies to the Farm Um-brella Liability Policy, Commercial Liabil-ity Umbrella Coverage Part and the Commercial Automobile Coverage Part:

We may cancel this policy by mailing or delivering to the first Named Insured and any lienholder or loss payee named in the policy, and any lessee of whom we have received notification prior to the loss, written notice of cancellation at least:

(1) 10 days before the effective date of can-cellation, stating the reason for cancella-tion, if we cancel for nonpayment of premium; or

(2) 20 days before the effective date of can-cellation if we cancel for any other rea-son.

c. If this policy has been in effect more than 60 days or is a renewal policy, we may cancel only for one or more of the follow-ing reasons:

(1) Nonpayment of premium;

(2) Fraud or material misrepresentation made by you or with your knowledge in obtaining the policy, continuing the policy or in presenting a claim under the policy;

(3) The occurrence of a material change in the risk which substantially in-creases any hazard insured against after policy issuance;

(4) Violation of any local fire, health, safety, building or construction regu-lation or ordinance with respect to any insured property or its occupancy which substantially increases any hazard insured against under the pol-icy;

IA 4107 AR 10 22 Services Office, Inc., with its permission. Page 2 of 2

(5) Nonpayment of membership dues in those cases where our bylaws, agreements or other legal instru-ments require payment as a condition of the issuance and maintenance of the policy; or

(6) A material violation of a material pro-vision of the policy.

B. Paragraph 5. of the Cancellation Common Policy Condition is replaced by the following:

a. If this policy is cancelled, we will send the first Named Insured any premium refund due.

b. We will refund the pro rata unearned premium if the policy is cancelled by us or the first Named Insured.

c. However, the refund will be less than the pro rata unearned premium if the refund of such amount would reduce the premi-um retained by us to an amount less than the minimum premium for this policy.

d. The cancellation will be effective even if we have not made or offered a refund.

e. If the first Named Insured cancels the pol-icy, we will retain no less than $100 of the premium, subject to the following:

(1) We will retain no less than $250 of the premium for the Machinery and Equipment Coverage Part.

(2) We will retain the premium developed for any annual policy period for the General Liability Classifications, if any, shown in the Declarations.

(3) If the Commercial Auto Coverage Part covers only snowmobiles or golfmobiles, we will retain $100 or the premium shown in the Declarations, whichever is greater.

(4) If the Commercial Auto Coverage Part covers an "auto" with a mounted amusement device, we will retain the premium shown in the Declarations for the amusement device and not less than $100 for the auto to which it is attached.

C. Paragraph g. of the Mortgageholders Condi-tion, if any, is replaced by the following:

g. If we elect not to renew this policy, we will give written notice to the mortgage-holder:

(1) As soon as practicable if nonrenewal is due to the first Named Insured's failure to pay any premium required for renewal; or

(2) At least 60 days before the expiration date of this policy if we nonrenew for any other reason.

D. The following condition is added and super-sedes any other provisions to the contrary:

Nonrenewal

1. If we decide not to renew this policy, we will mail or deliver written notice of nonre-newal to the first Named Insured at least 60 days prior to:

a. The expiration date of this policy; or

b. The anniversary date of this policy, if the policy is written for a term of more than one year. However, we are not required to send this notice if nonre-newal is due to your failure to pay any premium required for renewal.

However, we are not required to send this notice if nonrenewal is due to your failure to pay any premium required for renewal.

2. We will mail our notice to the first Named Insured's mailing address last known to

us. If notice is mailed, proof of mailing will be sufficient proof of notice.

IA 4338 05 11

SIGNATURE ENDORSEMENT

IN WITNESS WHEREOF, this policy has been signed by our President and Secretary in the City of Fairfield, Ohio, but this policy shall not be binding upon us unless countersigned by an authorized representative of ours. The failure to countersign does not void coverage in Arizona, Virginia and Wisconsin.

Secretary President

The signature on any form, endorsement, policy, declarations, jacket or application other than the signature of the President or Secretary named above is deleted and replaced by the above signatures.

IL 09 09 03 98 Copyright, Insurance Services Office, Inc., 1997

ARKANSAS NOTICE

This endorsement modifies insurance provided under the following:

COMMERCIAL AUTOMOBILE COVERAGE PART

PERSONAL AUTO POLICY PART D - COVERAGE FOR DAMAGE TO YOUR AUTO

The following statement is added to the policy:

IN THE REPAIR OF YOUR COVERED MOTOR VEHICLE UNDER THE PHYSICAL DAMAGE COVERAGE

PROVISIONS OF THIS POLICY, WE MAY REQUIRE OR SPECIFY THE USE OF MOTOR VEHICLE PARTS

NOT MADE BY THE ORIGINAL MANUFACTURER. THESE PARTS ARE REQUIRED TO BE AT LEAST

EQUAL IN TERMS OF FIT, QUALITY, PERFORMANCE, AND WARRANTY TO THE ORIGINAL MANUFAC-

TURER PARTS THEY REPLACE.

IP 403 AR 03 20

ARKANSAS NOTICE

In compliance with Ark. Code Ann. § 23-79-138, the following information must be provided to you the insured.

Please see our contact information below:

You may call our toll-free telephone number at:

1-888-242-8811

You may also write to us at:

The Cincinnati Insurance Companies or The Cincinnati Insurance Companies 6200 South Gilmore Road P.O. Box 145496 Fairfield, Ohio 45014-5141 Cincinnati, Ohio 45250-5496

Agency Name and Address:

Phone Number:

Policyholders have the right to file a complaint with the Arkansas Insurance Department (AID). You may call AID to request a complaint form at (800) 852-5494 or (501) 371-2640 or write the Department at:

Arkansas Insurance Department Consumer Services Division 1 Commerce Way, Suite 102

Little Rock, AR 72202

CADENCE INSURANCE, INC.

8315 CANTRELL RD STE 300

LITTLE ROCK, AR 72227-2357

501-664-7705

AA 101 03 06 Services Office, Inc., with its permission. Page 1 of 14

BUSINESS AUTO COVERAGE FORM

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 the Named Insured shown in the Declarations. The words "we", "us" and "our" refer to the Company providing this insurance.

Other words and phrases that appear in quotation marks have special meaning. Refer to SECTION V -

DEFINITIONS.

SECTION I - COVERED AUTOS

ITEM TWO of the Declarations shows the "autos" that are covered "autos" for each of your cover-ages. The following numerical symbols describe the "autos" that may be covered "autos". The symbols entered next to a coverage on the Decla-rations designate the only "autos" that are covered "autos".

A. Description of Covered Auto Designation Symbols

SYMBOL DESCRIPTION

1 = ANY "AUTO".

2 = OWNED "AUTOS" ONLY. Only those "autos" you own (and for Liability Cover-age any "trailers" you don't own while at-tached to power units you own). This in-cludes those "autos" you acquire owner-ship of after the policy begins.

3 = OWNED PRIVATE PASSENGER

"AUTOS" ONLY. Only the private pas-senger "autos" you own. This includes those private passenger "autos" you ac-quire ownership of after the policy begins.

4 = OWNED "AUTOS" OTHER THAN PRI-

VATE PASSENGER "AUTOS" ONLY.

Only those "autos" you own that are not of the private passenger type (and for Li-ability Coverage any "trailers" you don't own while attached to power units you own). This includes those "autos" not of the private passenger type you acquire ownership of after the policy begins.

5 = OWNED "AUTOS" SUBJECT TO NO-

FAULT. Only those "autos" you own that are required to have No-Fault benefits in the state where they are licensed or prin-cipally garaged. This includes those "autos" you acquire ownership of after the policy begins provided they are re-quired to have No-Fault benefits in the state where they are licensed or princi-pally garaged.

6 = OWNED "AUTOS" SUBJECT TO A

COMPULSORY UNINSURED MOTOR-

ISTS LAW. Only those "autos" you own that because of the law in the state where they are licensed or principally garaged are required to have and cannot reject Uninsured Motorists Coverage. This in-cludes those "autos" you acquire owner-ship of after the policy begins provided they are subject to the same state unin-sured motorists requirement.

7 = SPECIFICALLY DESCRIBED "AUTOS".

Only those "autos" described in ITEM THREE of the Declarations for which a premium charge is shown (and for Liabil-ity Coverage any "trailers" you don't own while attached to a power unit described in ITEM THREE).

8 = HIRED "AUTOS" ONLY. Only those "autos" you lease, hire, rent or borrow.

This does not include any "auto" you lease, hire, rent, or borrow from any of your "employees" or partners (if you are a partnership), members (if you are a lim-ited liability company) or members of their households.

9 = NONOWNED "AUTOS" ONLY. Only those "autos" you do not own, lease, hire, rent or borrow that are used in connec-tion with your business. This includes "autos" owned by your "employees", partners (if you are a partnership), mem-bers (if you are a limited liability com-pany), or members of their households but only while used in your business or your personal affairs.

B. Owned Autos You Acquire After the Policy Begins

1. If Symbols 1, 2, 3, 4, 5, or 6 are entered next to a coverage in ITEM TWO of the Declarations, then you have coverage for "autos" that you acquire of the type de-scribed for the remainder of the policy pe-riod.

2. But, if Symbol 7 is entered next to a cov-erage in ITEM TWO of the Declarations, an "auto" you acquire will be a covered "auto" for that coverage only if:

a. We already cover all "autos" that you own for that coverage or it replaces

AA 101 03 06 Services Office, Inc., with its permission. Page 2 of 14 an "auto" you previously owned that had that coverage; and

b. You tell us within 30 days after you acquire it that you want us to cover it for that coverage.

C. Certain Trailers, Mobile Equipment and Temporary Substitute Autos

If Liability Coverage is provided by this Cov-erage Form, the following types of vehicles are also covered "autos" for Liability Cover-age:

1. "Trailers" with a load capacity of 2,000 pounds or less designed primarily for travel on public roads.

2. "Mobile equipment" while being carried or towed by a covered "auto".

3. Any "auto" you do not own while used with the permission of its owner as a temporary substitute for a covered "auto" you own that is out of service because of its:

a. Breakdown;

b. Repair;

c. Servicing;

d. "Loss"; or

e. Destruction.

SECTION II - LIABILITY COVERAGE

A. Coverage

We will pay all sums an "insured" legally must pay as damages because of "bodily injury" or "property damage" to which this insurance applies, caused by an "accident" and resulting from the ownership, maintenance or use of a covered "auto".

We will also pay all sums an "insured" legally must pay as a "covered pollution cost or ex-pense" to which this insurance applies, caused by an "accident" and resulting from the ownership, maintenance or use of cov-ered "autos". However, we will only pay for the "covered pollution cost or expense" if there is either "bodily injury" or "property damage" to which this insurance applies that is caused by the same "accident".

We have the right and duty to defend any "in-sured" against a "suit" asking for such dam-ages or a "covered pollution cost or expense".

However, we have no duty to defend any "in-sured" against a "suit" seeking damages for "bodily injury" or "property damage" or a "cov-ered pollution cost or expense" to which this insurance does not apply. We may investigate and settle any claim or "suit" as we consider appropriate. Our duty to defend or settle ends when the Liability Coverage Limit of Insurance has been exhausted by payment of judg-ments or settlements.

1. Who is an Insured

The following are "insureds":

a. You for any covered "auto".

b. Anyone else while using with your permission a covered "auto" you own, hire or borrow except:

(1) The owner or anyone else from whom you hire or borrow a cov-ered "auto". This exception does not apply if the covered "auto" is a "trailer" connected to a cov-ered "auto" you own.

(2) Your "employee" if the covered "auto" is owned by that "em-ployee" or a member of his or her household.

(3) Someone using a covered "auto" while he or she is working in a business of selling, servic-ing, repairing, parking or storing "autos" unless that business is yours.

(4) Anyone other than your "em-ployees", partners (if you are a partnership), members (if you are a limited liability company), or a lessee or borrower or any of their "employees", while moving property to or from a covered "auto".

(5) A partner (if you are a partner-ship), or a member (if you are a limited liability company), for a covered "auto" owned by him or her or a member of his or her household.

c. Anyone liable for the conduct of an "insured" described above but only to the extent of that liability.

2. Coverage Extensions

a. Supplementary Payments

We will pay for the "insured":

(1) All expenses we incur.

(2) Up to $2,000 for the cost of bail bonds (including bonds for re-lated traffic law violations) re-

AA 101 03 06 Services Office, Inc., with its permission. Page 3 of 14 quired because of an "accident" we cover. We do not have to furnish these bonds.

(3) The cost of bonds to release attachments in any "suit" against the "insured" we defend, but only for bond amounts within our Limit of Insurance.

(4) All reasonable expenses in-curred by the "insured" at our request, including actual loss of earnings up to $250 a day be-cause of time off from work.

(5) All costs taxed against the "in-sured" in any "suit" against the "insured" we defend.

(6) All interest on the full amount of any judgment that accrues after entry of the judgment in any "suit" against the "insured" we defend, but our duty to pay in-terest ends when we have paid, offered to pay or deposited in court the part of the judgment that is within our Limit of Insur-ance.

These payments will not reduce the Limit of Insurance.

b. Out-of-State Coverage Extensions

While a covered "auto" is away from the state where it is licensed we will:

(1) Increase the Limit of Insurance for Liability Coverage to meet the limits specified by a compul-sory or financial responsibility law of the jurisdiction where the covered "auto" is being used.

This extension does not apply to the limit or limits specified by any law governing motor carri-ers of passengers or property.

(2) Provide the minimum amounts and types of other coverages, such as no-fault, required of out-of-state vehicles by the jurisdic-tion where the covered "auto" is being used.

We will not pay anyone more than once for the same elements of loss because of these extensions.

B. Exclusions

This insurance does not apply to any of the following:

1. Expected or Intended Injury

"Bodily injury" or "property damage" which may reasonably be expected to re-sult from the intentional or criminal acts of the "insured" or which is in fact expected or intended by the "insured", even if the injury or damage is of a different degree or type than actually expected or in-tended. This exclusion does not apply to "bodily injury" resulting from the use of reasonable force to protect persons or property.

2. Contractual

Liability assumed under any contract or agreement.

But this exclusion does not apply to liabil-ity for damages:

a. Assumed in a contract or agreement that is an "insured contract" provided the "bodily injury" or "property dam-age" occurs subsequent to the exe-cution of the contract or agreement;

or

b. That the "insured" would have in the absence of the contract or agree-ment.

3. Workers' Compensation

Any obligation for which the "insured" or the "insured's" insurer may be held liable under any workers' compensation, dis-ability benefits or unemployment com-pensation law or any similar law.

4. Employee Indemnification and Em-ployer's Liability

"Bodily injury" to:

a. An "employee" of the "insured" sus-tained in the "workplace";

b. An "employee" of the "insured" aris-ing out of the performance of duties related to the conduct of the "in-sured's" business; or

c. The spouse, child, parent, brother or sister of that "employee" as a conse-quence of Paragraph a. or b. above.

This Exclusion applies:

(1) Whether the "insured" may be liable as an employer or in any other capacity; and

(2) To any obligation to share dam-ages with or repay someone else who must pay damages because of the injury.

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But this exclusion does not apply to "bod-ily injury" to domestic "employees" not entitled to workers' compensation bene-fits or to liability assumed by the "insured" under an "insured contract" other than a contract or agreement with a labor leas-ing firm. For the purposes of the Cover-age Form, a domestic "employee" is a person engaged in household or domes-tic work performed principally in connec-tion with a residence premises.

5. Fellow Employee

"Bodily injury" to any fellow "employee" of the "insured" arising out of and in the course of the fellow "employee's" em-ployment or while performing duties re-lated to the conduct of your business.

6. Care, Custody or Control

"Property damage" to or "covered pollu-tion cost or expense" involving property owned or transported by the "insured" or in the "insured's" care, custody or control.

But this exclusion does not apply to liabil-ity assumed under a sidetrack agree-ment.

7. Handling of Property

"Bodily injury" or "property damage" re-sulting from the handling of property:

a. Before it is moved from the place where it is accepted by the "insured" for movement into or onto the cov-ered "auto"; or

b. After it is moved from the covered "auto" to the place where it is finally delivered by the "insured".

8. Movement of Property by Mechanical Device

"Bodily injury" or "property damage" re-sulting from the movement of property by a mechanical device (other than a hand truck) unless the device is attached to the covered "auto".

9. Operations

"Bodily injury" or "property damage" aris-ing out of the operation of:

a. Any equipment listed in Paragraphs 6.b. and 6.c. of the definition of "mo-bile equipment"; or

b. Machinery or equipment that is on, attached to, or part of, a land vehicle that would qualify under the definition of "mobile equipment" if it were not subject to a compulsory or financial responsibility law or other motor ve-hicle insurance law where it is li-censed or principally garaged.

10. Completed Operations

"Bodily injury" or "property damage" aris-ing out of your work after that work has been completed or abandoned.

In this exclusion, your work means:

a. Work or operations performed by you or on your behalf; and

b. Materials, parts or equipment fur-nished in connection with such work or operations.

Your work includes warranties or repre-sentations made at any time with respect to the fitness, quality, durability or per-formance of any of the items included in Paragraphs a. or b. above.

Your work will be deemed completed at the earliest of the following times:

(1) When all of the work called for in your contract has been com-pleted.

(2) When all of the work to be done at the site has been completed if your contract calls for work at more than one site.

(3) When that part of the work done at a job site has been put to its intended use by any person or organization other than another contractor or subcontractor working on the same project.

Work that may need service, mainte-nance, correction, repair or replacement, but which is otherwise complete, will be treated as completed.

11. Pollutant

"Bodily injury" or "property damage" aris-ing out of the actual, alleged or threat-ened discharge, dispersal, seepage, mi-gration, release, escape or emission of "pollutants":

a. That are, or that are contained in any property that is:

(1) Being transported or towed by, handled, or handled for move-ment into, onto or from, the cov-ered "auto";

(2) Otherwise in the course of tran-sit by or on behalf of the "in-sured"; or

AA 101 03 06 Services Office, Inc., with its permission. Page 5 of 14

(3) Being stored, disposed of, treated or processed in or upon the covered "auto";

b. Before the "pollutants" or any prop-erty in which the "pollutants" are contained are moved from the place where they are accepted by the "in-sured" for movement into or onto the covered "auto"; or

c. After the "pollutants" or any property in which the "pollutants" are con-tained are moved from the covered "auto" to the place where they are fi-nally delivered, disposed of or aban-doned by the "insured".

Paragraph a. of this exclusion does not apply to fuels, lubricants, fluids, exhaust gases or other similar "pollutants" that are needed for or result from the normal electrical, hydraulic or mechanical func-tioning of the covered "auto" or its parts, if:

(1) The "pollutants" escape, seep, migrate, or are discharged, dis-persed or released directly from an "auto" part designed by its manufacturer to hold, store, re-ceive or dispose of such "pollut-ants"; and

(2) The "bodily injury", "property damage" or "covered pollution cost or expense" does not arise out of the operation of any equipment listed in Paragraphs 6.b. and 6.c. of the definition of "mobile equipment".

However, this exception to Paragraph a.

does not apply if the fuels, lubricants, flu-ids, exhaust gases or other similar "pol-lutants" are intentionally discharged, dis-persed or released.

Paragraphs b. and c. of this exclusion do not apply to "accidents" that occur away from premises owned by or rented to an "insured" with respect to "pollutants" not in or upon a covered "auto" if:

(1) The "pollutants" or any property in which the "pollutants" are contained are upset, overturned or damaged as a result of the maintenance or use of a cov-ered "auto"; and

(2) The discharge, dispersal, seep-age, migration, release, emis-sion or escape of the "pollut-ants" is caused directly by such upset, overturn or damage.

d. At or from any premises, site or loca-tion on which any insured or any contractors or subcontractors work-ing directly or indirectly on any in-sured's behalf are performing opera-tions:

(1) If the "pollutants" are brought on or to the premises, site or loca-tion in connection with such op-erations by such "insured", con-tractor or subcontractor; or

(2) If the operations are to test for, monitor, clean up, remove, contain, treat, detoxify or neu-tralize, or in any way respond to, or assess the effects of "pollut-ants".

Subparagraph d.(1) does not apply to "bodily injury" or "property damage" aris-ing out of the escape of fuels, lubricants or other operating fluids which are needed to perform the normal electrical, hydraulic or mechanical functions neces-sary for the operation of "mobile equip-ment" or its parts, if such fuels, lubricants or other operating fluids escape from a vehicle part designed to hold, store or re-ceive them. This exception does not ap-ply if the fuels, lubricants or other operat-ing fluids are intentionally discharged, dispersed or released, or if such fuels, lu-bricants or other operating fluids are brought on or to the premises, site or lo-cation with the intent to be discharged, dispersed or released as part of the op-erations being performed by such "in-sured", contractor or subcontractor.

12. War

"Bodily injury" or "property damage" aris-ing directly or indirectly out of:

a. War, including undeclared or civil war;

b. Warlike action by a military force, in-cluding action in hindering or de-fending against an actual or ex-pected attack, by any government, sovereign or other authority using military personnel or other agents; or

c. Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these.

13. Racing

Covered "autos" while used in any pro-fessional or organized racing or demoli-tion contest or stunting activity, or while practicing for such contest or activity. This

AA 101 03 06 Services Office, Inc., with its permission. Page 6 of 14 insurance also does not apply while that covered "auto" is being prepared for such a contest or activity.

C. Limit of Insurance

Regardless of the number of covered "autos", "insureds", premiums paid, claims made or vehicles involved in the "accident", the most we will pay for the total of all damages and "covered pollution cost or expense" com-bined, resulting from any one "accident" is the Limit of Insurance for Liability Coverage shown in the Declarations.

All "bodily injury", "property damage" and "covered pollution cost or expense" resulting from continuous or repeated exposure to sub-stantially the same conditions will be consid-ered as resulting from one "accident".

No one will be entitled to receive duplicate payments for the same elements of "loss" un-der this Coverage Form and any Medical Payments Coverage endorsement, Uninsured Motorists Coverage endorsement or Underin-sured Motorists Coverage endorsement at-tached to this Coverage Part.

D. Mobile Equipment Subject to Motor Vehicle Insurance Laws

As respects SECTION II…