Attachment I - 2022-2023 Policy Form - RFB 758 2300000826.pdf

Insuring Your

Aviation Risk

Count on a Starr Solution.

Starr Elite Declarations (5/09) - 1 -

STARR INDEMNITY & LIABILITY COMPANY

399 PARK AVENUE

NEW YORK, NY 10022

STARR ELITE COMPREHENSIVE

CORPORATE AIRCRAFT POLICY

ISSUED TO

COMMONWEALTH OF KENTUCKY - VARIOUS STATE AGENCIES C/O STATE RISK & INSURANCE

SERVICES DIVISION

POLICY NUMBER

1000237730-05

UNDERWRITTEN BY

STARR AVIATION AGENCY, INC.

3353 PEACHTREE ROAD, NE

SUITE 1000

ATLANTA, GA 30326

ARRANGED BY

JSL AVIATION INSURANCE A MARSH & MCLENNAN AGENCY LLC COMPANY

11330 LAKEFIELD DRIVE, SUITER 100

JOHNS CREEK, GA 30097

Starr Elite Declarations (5/09) - 2 -

CONTENTS

DECLARATIONS 4

Limits of the Company’s Liability: 5

Section One - Liability Coverages 5

Coverage 1 - Liability for Scheduled Aircraft 5 Coverage 2 - Liability for the Use of Non-Owned Aircraft 5 Coverage 3 - Liability for Property Damage to Non-Owned Aircraft, and Temporary Substitute Aircraft 5 Coverage 4 - Liability for Charter Referral 5 Coverage 5 - Passenger Voluntary Settlements for Scheduled Aircraft and Non-Owned Aircraft 6 Coverage 6 - Liability for Property Damage to Hangars and Their Contents 6 Coverage 7 - Liability for Fire Damage to Real Property 6 Coverage 8 - Liability for Cargo 6 Coverage 9 - Liability Under Contractual Agreements 7 Coverage 10 - Liability for Personal Injury and in/excluding Advertising Injury 7 Coverage 11 - Liability for Alcohol Beverage Service 7 Coverage 12 - Liability for Incidental Medical Malpractice 7 Coverage 13 - Liability for the Use of Premises 7 Coverage 14 - Liability for the Operation of Mobile Equipment 7 Coverage 15 - Liability for the Operation of an Auto while on Airport Premises 7 Coverage 16 - Liability for the Sale of Aircraft and Aircraft Products and Services 7 Coverage 17 - Liability for Hangarkeeper Operations 8 Coverage 18 - Liability for Garagekeeper Operations 8

Section Two - Defense, Settlement and Supplementary Payments 8

Section Three - Physical Damage Coverages 8

Coverage 19 - Physical Damage Coverage for Scheduled Aircraft (including Ingestion and Emergency Landing)

Coverage 20 - Physical Damage Coverage for Spare Engines and Spare Parts including Transit 8 Coverage 21 - Automatic Insurance for Increased Value of Scheduled Aircraft or Spare Engines and Spare Parts 9 Coverage 22 - Physical Damage Coverage for Mechanics Tools 9

Section Four – Additional Coverages 9

Coverage 23 – Temporary Replacement Parts Rental Expense 9 Coverage 24 - Replacement Aircraft Rental Expense 9 Coverage 25 - Search and Rescue Expenses 9 Coverage 26 - Runway Foaming and Crash Control Expenses 9 Coverage 27 - Trip Interruption Expense Coverage 9 Coverage 28 - Automatic Insurance for Newly Acquired Aircraft 10 Coverage 29 - Lay-Up Credit for Scheduled Aircraft 10 Coverage 30 - Personal Effects and Baggage Expense 10

Section Five - Medical Expenses 10

Coverage 31 - Medical Payments for Scheduled Aircraft and Non-Owned Aircraft 10 Coverage 32 - Premises Medical Payments 10

Starr Elite Declarations (5/09) - 3 -

INSURING AGREEMENTS 11

Section One - Liability Coverages 11

Coverage 1 - Liability for Scheduled Aircraft 11 Coverage 2 - Liability for the Use of Non-Owned Aircraft 11 Coverage 3 - Liability for Property Damage to Non-Owned Aircraft, and Temporary Substitute Aircraft

Coverage 4 - Liability for Charter Referral 12 Coverage 5 - Passenger Voluntary Settlements for Scheduled Aircraft and Non-Owned Aircraft 13 Coverage 6 - Liability for Property Damage to Hangars and Their Contents 14 Coverage 7 - Liability for Fire Damage to Real Property 14 Coverage 8 - Liability for Cargo 15 Coverage 9 - Liability Under Contractual Agreements 15 Coverage 10 - Liability for Personal Injury and in/excluding Advertising Injury 16 Coverage 11 - Liability for Alcohol Beverage Service 19 Coverage 12 - Liability for Incidental Medical Malpractice 18 Coverage 13 - Liability for the Use of Premises 20 Coverage 14 - Liability for the Operation of Mobile Equipment 20 Coverage 15 - Liability for the Operation of an Auto while on Airport Premises 20 Coverage 16 - Liability for the Sale of Aircraft and Aircraft Products and Services 20 Coverage 17 - Liability for Hangarkeeper Operations 21 Coverage 18 - Liability for Garagekeeper Operations 22

Section Two - Defense, Settlement and Supplementary Payments 22

Section Three - Physical Damage Coverages 23

Coverage 19 - Physical Damage Coverage for Scheduled Aircraft (including Ingestion and Emergency Landing)

Coverage 20 - Physical Damage Coverage for Spare Engines and Spare Parts including Transit 23 Coverage 21 - Automatic Insurance for Increased Value of Scheduled Aircraft or Spare Engines and Spare Parts

Coverage 22 - Physical Damage Coverage for Mechanics Tools 24

Section Four – Additional Coverages 25

Coverage 23 – Temporary Replacement Parts Rental Expense 25 Coverage 24 - Replacement Aircraft Rental Expense 25 Coverage 25 - Search and Rescue Expenses 25 Coverage 26 - Runway Foaming and Crash Control Expenses 26 Coverage 27 - Trip Interruption Expense Coverage 26 Coverage 28 - Automatic Insurance for Newly Acquired Aircraft 26 Coverage 29 - Lay-Up Credit for Scheduled Aircraft 26 Coverage 30 - Personal Effects and Baggage Expense 26

Section Five - Medical Expenses 27

Coverage 31 - Medical Payments for Scheduled Aircraft and Non-Owned Aircraft 27 Coverage 32 - Premises Medical Payments 27

Section Six - Policy Definitions 27

Section Seven - Exclusions 31 Section Eight - Limit of the Company’s Liability 33 Section Nine - Notice of Claims and Other Duties of an Insured 35 Section Ten - Other Conditions of Insurance 36

Starr Elite Declarations (5/09) - 4 -

Underwritten by:

STARR ELITE COMPREHENSIVE CORPORATE AIRCRAFT POLICY

DECLARATIONS

Policy Number 1000237730-05⠀ Previous Policy Number 1000237730-04

This section along with the policy provisions and any endorsements attached hereto completes this Starr Elite Comprehensive Corporate Aircraft Policy (Policy), issued by the Company as indicated above (hereinafter called The Company) and produced by Starr Aviation Agency, Inc., Starr Underwriting Agents Limited and Starr Adjustment Services, Inc. (Aviation Managers) as the authorized representative of the Company.

Item 1. Named Insured: COMMONWEALTH OF KENTUCKY - VARIOUS STATE AGENCIES C/O

STATE RISK & INSURANCE SERVICES DIVISION

Item 2. Address: C/O DIVISION OF STATE RISK AND INSURANCE SERVICES, 500 MERO

STREET, 1ST FLOOR

FRANKFORT, KY 40601

Item 3. Policy Period: From: AUGUST 13, 2022 Until: AUGUST 13, 2023 both at 12:01 AM standard time at the first address shown in Item 2. above.

Item 4. Pilots: AS ENDORSED

The pilot warranty in Item 4, if any, shall not apply to Liability Coverage for Non-Owned Aircraft, Temporary Substitute Aircraft and Charter Referral. Additionally, the pilot warranty in Item 4, if any, shall not apply while the insured aircraft is under the care, custody or control of a repair station for the purpose of maintenance, repair or test flights.

Starr Elite Declarations (5/09) - 5 -

Item 5. Limits of the Company’s Liability:

The limit of the Company’s liability provided by each Coverage will not exceed:

Section One - Liability Coverages

Coverage 1 - Liability for Scheduled Aircraft

FAA Cert.

Number Make & Model

Year Built

Seats Crew / Pass

Aircraft Liability Limit

------ AS ENDORSED ------------------ ---- -- -- $ -----------

Coverage 2 - Liability for the Use of Non-Owned Aircraft

$ 10,000,000. Each Occurrence

Maximum Number of Seats: ⠀45

Reporting Grace Period: ⠀30 ⠀ consecutive days

This limit is part of, and not in addition to, the limit provided for Coverage 1.

Coverage 3 - Liability for Property Damage to Non-Owned Aircraft and Temporary Substitute Aircraft

$ 10,000,000. Each Occurrence

This limit is part of, and not in addition to, the limit provided for Coverage 2.

Coverage 4 - Liability for Charter Referral

$ 10,000,000. Each Occurrence

This limit is part of, and not in addition to, the limit provided for Coverage 1.

Starr Elite Declarations (5/09) - 6 -

Coverage 5 - Passenger Voluntary Settlements for Scheduled Aircraft and Non-Owned Aircraft

A. Settlement Limits:

1. With respect to any Scheduled Aircraft or Temporary Substitute Aircraft:

Each Non-Crew Member Passenger: $ 500,000. Each Occurrence

Each Crew Member: $ 500,000. Each Occurrence

2. With respect to any Non-Owned Aircraft except a Temporary Substitute Aircraft:

Each Non-Crew Member Passenger: $ 500,000. Each Occurrence

Each Crew Member: $ 500,000. Each Occurrence

Total All Non-Owned Aircraft Crew Members and Non-Crew Member Passengers Combined: $ 5,000,000. Each Occurrence

B. Maximum Weekly Indemnity Limit: $ 1,500. Each Passenger

C. Maximum Indemnity Period: ⠀104⠀ consecutive weeks

These limits are part of, and not in addition to, the limit provided for Coverage 1 or 2, whichever applies to the loss.

Coverage 6 - Liability for Property Damage to Hangars and Their Contents

$ 2,000,000. Each Occurrence This limit is part of, and not in addition to, the limit provided for Coverage 1 or 2, whichever applies to the loss.

Coverage 7 - Liability for Fire Damage to Real Property

$ 2,000,000. Each Occurrence This limit is part of, and not in addition to, the limit provided for Coverage 1 or 2, whichever applies to the loss.

Coverage 8 - Liability for Cargo

$ 500,000. Each Occurrence

Deductible: $ 0 Each Occurrence This limit is part of, and not in addition to, the limit provided for Coverage 1 or 2, whichever applies to the loss.

Starr Elite Declarations (5/09) - 7 -

Coverage 9 - Liability Under Contractual Agreements

$ 10,000,000. Each Occurrence This limit is part of, and not in addition to, the limit provided for Coverage 1 or 2, whichever applies to the loss.

Coverage 10 - Liability for Personal Injury and INcluding Advertising Injury

$ 10,000,000. Each Offense and in the Annual Aggregate This limit is part of, and not in addition to, the limit provided for Coverage 1 or 2, whichever applies to the loss.

Coverage 11 - Liability For Alcohol Beverage Service

$ 10,000,000. Each Occurrence This limit is part of, and not in addition to, the limit provided for Coverage 1 or 2, whichever applies to the loss.

Coverage 12 - Liability for Incidental Medical Malpractice

$ 10,000,000. Each Occurrence This limit is part of, and not in addition to, the limit provided for Coverage 1 or 2, whichever applies to the loss.

Coverage 13 - Liability for the Use of Premises

$ 10,000,000. Each Occurrence This limit is part of, and not in addition to, the limit provided for Coverage 1 or 2, whichever applies to the loss.

Coverage 14 - Liability for the Operation of Mobile Equipment

$ 10,000,000. Each Occurrence

This limit is part of, and not in addition to, the limit provided for Coverage 13.

Coverage 15 - Liability for the Operation of an Auto while on Airport Premises

$ 10,000,000. Each Occurrence

This limit is part of, and not in addition to, the limit provided for Coverage 13.

Coverage 16 - Liability for the Sale of Aircraft and Aircraft Products and Services

$ 10,000,000. Each Occurrence and in the Annual Aggregate

This limit is part of, and not in addition to, the limit provided for Coverage 13.

Starr Elite Declarations (5/09) - 8 -

Coverage 17 - Liability for Hangarkeeper Operations

$ 10,000,000. Each Aircraft $ 10,000,000. Each Occurrence

Deductible: $ NIL Each Aircraft $ NIL Each Occurrence

This limit is part of, and not in addition to, the limit provided for Coverage 13.

Coverage 18 - Liability for Garagekeepers

$ 250,000. Any One Auto $ 250,000. Any One Loss

Deductible: $ 1,000. Each Auto

This limit is part of, and not in addition to, the limit provided for Coverage 13.

Section Two - Defense, Settlement and Supplementary Payments

Section Three - Physical Damage Coverages

Coverage 19 - Physical Damage Coverage for Scheduled Aircraft (including Ingestion and Emergency Landing)

Deductible FAA Cert.

Number Make & Model Insured Value Not In Motion

In Motion/ Ingestion

------ AS ENDORSED ------------------ $ ----------- $ ------- $ -------

Coverage 20 - Physical Damage Coverage for Spare Engines and Spare Parts Including Transit

$ 2,000,000. Each Occurrence

Deductible:

Not In Motion $ NIL Each Occurrence

In Motion $ NIL Each Occurrence

Starr Elite Declarations (5/09) - 9 -

Coverage 21 - Automatic Insurance for Increased Value of Scheduled Aircraft or Spare Engines and Spare Parts

Maximum Automatic Physical Damage Limit for Scheduled Aircraft:

$ 10,000,000. any one aircraft without prior approval

Maximum Automatic Physical Damage Limit for Spare Engines and Spare Parts:

$ 3,000,000. without prior approval of the Aviation Managers

Coverage 22 - Physical Damage Coverage for Mechanics Tools

$ 50,000. Each Employee $ 50,000. Each Occurrence

Deductible: $ NIL Each Employee/ Each Occurrence

This limit is part of, and not in addition to, the limit provided for Coverage 13.

Section Four - Additional Coverages

Coverage 23 - Temporary Replacement Parts Rental Expense

$ 1,000,000. Each Loss

Minimum Repair Period: ⠀ 0 ⠀ days

Maximum coverage period: ⠀90 ⠀ consecutive days

Coverage 24 - Replacement Aircraft Rental Expense

$ 1,000,000. Each Loss

Minimum Repair Period: ⠀ 0 ⠀ days

Maximum coverage period: ⠀90 ⠀ consecutive days

Coverage 25 - Search and Rescue Expenses

$ 2,000,000. Each Loss

Coverage 26 - Runway Foaming and Crash Control Expenses

$ 2,000,000. Each Loss

Coverage 27 - Trip Interruption Expense Coverage

$ 25,000. Each Passenger/Each Loss

Starr Elite Declarations (5/09) - 10 -

Coverage 28 - Automatic Insurance for Newly Acquired Aircraft

Maximum Physical Damage Limit $ 10,000,000. any one aircraft without prior approval of the Aviation Managers

Coverage 29 - Lay-Up Credit for Scheduled Aircraft

A pro-rated return of 60 ⠀ % of the applicable premium at policy expiration if the scheduled aircraft is laid up for 30 ⠀ or more consecutive days.

Coverage 30 - Personal Effects and Baggage Expense

$ 50,000. Each Passenger

Section Five - Medical Expenses

Coverage 31 - Medical Payments for Scheduled Aircraft and Non-Owned Aircraft

A. With respect to any Scheduled Aircraft or Temporary Substitute Aircraft:

Each Non-Crew Member Passenger: $ 65,000. Each Occurrence

Each Crew Member: $ 65,000. Each Occurrence

B. With respect to any Non-Owned Aircraft except a Temporary Substitute Aircraft:

Each Non-Crew Member Passenger: $ 65,000. Each Occurrence

Each Crew Member: $ 65,000. Each Occurrence

Coverage 32 – Premises Medical Payments

$ 65,000. Each Person $ 65,000. Each Occurrence

Item 6. Policy Premium: $ 257,323.

A KENTUCKY TAX OF $4,631.81 SHALL APPLY.

Item 7. Endorsements Attached as of Inception: STARR ELITE PROVISIONS (5/09) STARR FORMS 10284, 10008, 10342, LIIBA AVIATION (12.09.19), 10510, 10350, 10708, 10351, 10480, 10376, 10031, 10328, 10317, 10466, 10362, AVN139, 10332, AVN48B, AVN52E, 10318, AVN46B, AVN38B, 10055, 10007, 20023, AVN2000A, 30002

Producer JSL AVIATION INSURANCE A MARSH & MCLENNAN AGENCY LLC COMPANY

11330 LAKEFIELD DRIVE, SUITER 100

JOHNS CREEK, GA 30097

Countersigned (if required) Approved By

(Authorized Representative)

At

By Date of Issue ⠀ AUGUST 26, 2022 (SBC) (Authorized Representative)

BBBBBBBBBBBBBBBBBB

Starr Elite Provisions (5/09) - 11 -

In consideration of the payment of the premium and in reliance upon the truth of the statements, representations and the declarations made by the Named Insured and subject to all of the terms of the Policy including the applicable Limits of the Company's Liability under Item 5, the Company agrees with the Named Insured with respect to the coverages stated in the Declarations as follows:

INSURING AGREEMENTS

Section One - Liability Coverages

Coverage 1 - Liability for Scheduled Aircraft

The Company will promptly pay on behalf of the insured all sums which the insured shall be legally obligated to pay as damages because of bodily injury or property damage caused by an occurrence during the policy period arising out of the ownership, maintenance or use of a scheduled aircraft.

Coverage 2 - Liability for the Use of Non-Owned Aircraft

The Company will promptly pay on behalf of the "insured", as defined below, all sums which the "insured" becomes legally obligated to pay as damages because of bodily injury or property damage caused by an occurrence during the policy period arising out of the use of non-owned aircraft by or on behalf of the "insured".

A. For Coverage 2, the definition of "insured":

1. with respect to any temporary substitute aircraft, means the same as insured;

2. with respect to all other non-owned aircraft, means:

a. the Named Insured and,

b. any officer, director, stockholder, employee, partner, or agent of the Named Insured while that person is acting in their capacity as such.

Regardless of Paragraphs 1. and 2. above, no person or organization will be an insured while using any aircraft that is owned in whole or in part by; or that is under any lease purchase option agreement by; or that is registered to that organization, person or, any household member of that person.

B. The insurance provided by Coverage 2 shall not apply to any claim or loss arising out of an insured's product liability hazard including any products designed, manufactured, sold, distributed, serviced or handled by or on behalf of an insured.

C. The Named Insured shall promptly advise the Aviation Managers of an exclusive lease of, or the use of, any non-owned aircraft that exceeds the reporting grace period shown in the Declarations. The Aviation Managers may request additional information and charge an additional premium for this use.

Inadvertent failure to report this use will not void this coverage provided that the Named Insured advises the Aviation Managers as soon as possible after the omission is discovered.

D. The insurance provided by Coverage 2 is excess insurance.

Starr Elite Provisions (5/09) - 12 -

Coverage 3 - Liability for Property Damage to Non-Owned Aircraft and Temporary Substitute Aircraft

The Company will promptly pay on behalf of the insured all sums which the "insured", as defined below, becomes legally obligated to pay as damages arising out of property damage caused by an occurrence during the policy period to non-owned aircraft or temporary substitute aircraft. This coverage section shall not apply while the aircraft is in-flight unless the aircraft is operated by a person employed as a professional pilot acting in the capacity as such.

A. For Coverage 3, the definition of "insured":

1. with respect to any temporary substitute aircraft, means the same as insured;

2. with respect to all other non-owned aircraft, means:

a. the Named Insured and,

b. any officer, director, stockholder, employee, partner, or agent of the Named Insured while that person is acting in their capacity as such.

Regardless of Paragraphs 1. and 2. above, no person or organization will be an insured while using any aircraft that is:

i. owned in whole or in part by;

ii. that is under any lease purchase option agreement by;

iii. that is registered to that organization, person or, any household member of that person.

B. The insurance provided by Coverage 3 shall not apply to any claim or loss arising out of an insured's product liability hazard including any products designed, manufactured, sold, distributed, serviced or handled by or on behalf of an insured. This includes Liability for Hangarkeeper Operation provided under Coverage 17.

C. The Named Insured shall promptly advise the Aviation Managers of an exclusive lease of, or the use of, any non-owned aircraft that exceeds the reporting grace period shown in the Declarations. The Aviation Managers may request additional information and charge an additional premium for this use.

Inadvertent failure to report this use will not void this coverage provided that the Named Insured advises the Aviation Managers as soon as possible after the omission is discovered.

D. The insurance provided by Coverage 3 is excess insurance.

Coverage 4 - Liability Coverage for Charter Referral

The Company will promptly pay on behalf of the Named Insured all sums the Named Insured becomes legally obligated to pay as damages because of bodily injury or property damage caused by an occurrence and arising out of the Named Insured's arrangement for use of a non-owned aircraft by and on behalf of another person or organization.

Starr Elite Provisions (5/09) - 13 -

Coverage 5 - Passenger Voluntary Settlements for Scheduled Aircraft and Non-Owned Aircraft

Regardless of legal liability and without admitting to the liability of any party, the Company will offer to pay on behalf of the insured the sum requested by the Named Insured to, or for, the benefit of each covered passenger who sustains bodily injury caused by an occurrence during the policy period arising out of the ownership, maintenance or use of a scheduled aircraft or the use of non-owned aircraft by, or on behalf of, the insured.

If the bodily injury, directly and independently of all other causes, results in the:

A. death or "permanent total disability" of the passenger, the Company will offer to pay up to the "settlement limit" as stated in the Declarations under Coverage 5.A.;

B. "loss" of two or more "body parts", the Company will offer to pay up to the "settlement limit" as stated in the Declarations under Coverage 5.A.;

C. "loss" of one "body part", the Company will offer to pay up to one-half of the "settlement limit" as stated in the Declarations under Coverage 5.A.;

D. Expense Reimbursement for Weekly Indemnity Payments:

If a specified "settlement limit" is shown for a passenger and if bodily injury directly causes that injured passenger to become "totally disabled", the Company will reimburse the Named Insured for payments they choose to make to the injured passenger for the loss of earnings as a result of the disability. However, the Company will only be liable for up to eighty percent (80%) of the average weekly wage of that passenger but not exceeding the maximum weekly indemnity limit as stated in the Declarations, under Coverage 5.B. Payments will be made for the period of continuous total disability for up to the maximum indemnity period shown in the Declarations under Coverage 5. C. If the injured passenger is an employee of the Named Insured and is injured in the course and scope of that employment, or is a crew member, at the time of the occurrence, the "settlement limit" will be reduced by the amount of any payments that are made under this paragraph.

E. It is a condition of payment to or on behalf of any individual(s) that the individual(s) or the individual(s) legal representative will:

1. if requested, authorize the Company to obtain medical reports and copies of records. The injured person will submit to examination by the physicians selected by the Company when the Company may reasonably require;

2. if payment is to be made under paragraphs A, B, or C above, be required to execute a full release, approved by the Company, for all bodily injury claims by or on their behalf against any insured and the Company for which there is insurance under the Policy.

F. If within 120 days the payment offer is not accepted or is rejected or if at any time a claim is made or civil action is filed by or on behalf of a passenger to whom this coverage applies for bodily injury against any insured, Coverage 5 will not apply to or for the benefit of that passenger.

Starr Elite Provisions (5/09) - 14 -

G. Coverage 5 will not apply to or for the benefit of any crew member on any non-owned aircraft unless the Declarations indicates a specified non-owned aircraft "settlement limit" for crew member and:

1. the crew member is a professional pilot who is regularly employed by the insured and acting in the capacity as such, or

2. the crew member would normally be operating a scheduled aircraft, but is operating a non-owned aircraft on behalf of the insured.

Definitions applicable to Coverage 5:

"Settlement Limit" means the maximum applicable limit the Company will pay to or for each passenger as shown in the Declarations under Coverage 5.A.;

"Totally Disabled" means the complete inability to perform any duty pertaining to one's occupation;

"Loss" means, with respect to a hand or foot, severance at or above the wrist or ankle, with respect to an eye, the entire and irrecoverable loss of sight;

"Body Part" means a hand, foot or eye;

"Permanent Total Disability" means the inability of the injured passenger after twelve months of being continuously "totally disabled", to perform every duty pertaining to the occupation the person was hired to perform for the rest of that person's life.

Coverage 6 - Liability for Property Damage to Hangars and Their Contents

The Company will promptly pay on behalf of the insured all sums which the insured becomes legally obligated to pay for property damage to hangars and their contents not owned by an insured caused by an occurrence resulting from the insured's aviation operations during the policy period.

The insurance provided by Coverage 6 is excess insurance and will not apply to any loss or damage to property covered elsewhere in the Policy.

Coverage 7 - Liability for Fire Damage to Property

The Company will promptly pay on behalf of the insured all sums which the insured becomes legally obligated to pay as damages because of property damage caused by an occurrence resulting from the insured's aviation operations during the policy period arising out of property damage to structures or portions thereof rented to or leased to the Named Insured, including fixtures permanently attached thereto, if such property damage arises out of fire. Coverage 7 shall not apply to liability assumed by the insured under any contract or agreement.

The insurance provided by Coverage 7 shall be excess insurance over any valid and collectible property insurance (including any deductible portion thereof), available to the insured, such as, but not limited to, Fire, Extended Coverage, Builder's Risk Coverage or Installation Risk Coverage.

Starr Elite Provisions (5/09) - 15 -

Coverage 8 - Liability for Cargo

The Company will promptly pay on behalf of the insured all sums which the insured becomes legally obligated to pay (less any applicable deductible) for the loss of, or physical damage to, the property of others caused by an occurrence during the policy period while the property is in the insured's care, custody or control and it is on a covered aircraft or while it is in the custody of the insured on their premises prior to loading on or, after unloading from, a covered aircraft.

The insurance provided by Coverage 8 is excess insurance.

Coverage 8 will not apply to any loss, damage or claim caused by:

A. any loss of market or any loss arising from delay whether or not the delay is caused by an occurrence covered by the Policy;

B. any type of consequential loss;

C. infidelity of the insured, its employees or agents;

D. and confined to wear, tear, deterioration, extremes of temperature or pressure or due to the perishable or hazardous nature of the property;

E. any loss in excess of the actual cost of reproducing or replacing destroyed or damaged manuscripts, notes, checks, securities, accounts, bills, deeds, or any other valuable papers;or

F. the loss of or damage to the personal effects or baggage of any passenger.

Coverage 9 - Liability for Contractual Agreements

A. The Company will promptly pay on behalf of the insured all sums which the insured becomes legally obligated to pay as damages because of bodily injury or property damage caused by an occurrence during the policy period arising out of liability assumed by the Named Insured or their legal representative in a contract or agreement relating to the ownership, maintenance or use of scheduled aircraft or the use of non-owned aircraft by the insured.

B. The Company's Rights of Recovery section shown in Section Ten - Other Conditions of Insurance, Paragraph F., of the Policy will not apply to the extent that it is addressed in any contract or agreement that the Named Insured or its legal representative has entered into relating to physical damage of property insured by the Policy.

C. The Named Insured agrees to submit a copy of all such contracts or agreements to the Aviation Managers as soon as possible. Inadvertent failure to do so will not void the insurance provided by Coverage 9 as long as the contract or agreement is submitted as soon as possible once the omission is discovered.

D. The Company reserves the right to charge an additional premium for any such contract or agreement.

E. The Aviation Managers shall not require copies of temporary aircraft storage or minor servicing agreements, military or governmental agreements for the use of an airport, lease of premises agreements or agreements approved by the Aviation Managers prior to the effective date of the Policy.

Starr Elite Provisions (5/09) - 16 -

F. The insurance provided by Coverage 9 shall not apply to any liability assumed:

1. under any oral contract or agreement, unless the agreement is a contract which is required by a military or governmental body for the insured's use of an airport or an agreement with another party relating to the temporary storage or minor servicing of a scheduled aircraft while it is away from its home base;

2. under any written contract or agreement:

a. that is with or for the benefit of any passenger, crew member or their heirs. However, subparagraph F. 1. above shall not apply:

i. if the contract or agreement is required by a military or governmental body for the insured's use of an airport; or

ii. for the Company's right of recovery as stated under Coverage 9, paragraph B;

b. to the extent that it applies to major alterations or major repairs as defined in the Federal Aviation Regulations;

c. that is with or for the benefit of any manufacturer of an aircraft or any aircraft parts or equipment, or their employees or agents, to the extent that it relates to their products liability hazard;

d. that relates to the sale of an aircraft;

e. that is entered into after a loss to the extent that it relates to that loss.

Coverage 10 - Liability for Personal Injury or Advertising Injury, if included, on the Declarations page

The Company will promptly pay on behalf of the insured all sums which the insured becomes legally obligated to pay as damages because of personal injury or advertising injury, if included, to which this insurance applies resulting from the insured's aviation operations. The Company will have the right and duty to defend any suit seeking those damages. The Company may at its discretion investigate any offense and settle any claim or suit that may result. However:

A. The amount the Company will pay for damages is limited as described in Section One - Coverage 10;

and

B. The Company's right and duty to defend end when it has exhausted the applicable limit of insurance in the payment of judgment(s) or settlement(s) under Coverage 10.

No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under Section Two - Defense, Settlement and Supplementary Payments.

The insurance provided by Coverage 10 applies to:

A. Personal injury caused by an offense arising out of the insured's aviation operations, excluding advertising, publishing, broadcasting or telecasting done by or for the insured;

B. Advertising injury, if included, caused by an offense committed in the course of advertising the insured's aviation operations, aviation goods, aviation products or aviation services, but only if the offense was committed in the coverage territory during the policy period.

Starr Elite Provisions (5/09) - 17 -

The insurance provided by Coverage 10 shall not apply to:

A. Breach Of Contract

Advertising injury or personal injury arising out of breach of contract.

B. Continuing Offenses

Advertising injury or personal injury that arises out of that part of an offense that continues or resumes after the later of the end of the policy period of:

1. this insurance; or,

2. a subsequent, continuous renewal or replacement of this insurance, that:

a. is issued by the insured;

b. remains in force while the offense continues; and would otherwise apply to advertising injury and personal injury.

C. Contracts

Advertising injury or personal injury for which the insured is obligated to pay damages by reason of assumption of liability in contract or agreement.

This exclusion does not apply to the liability for damages that such insured would have in the absence of such contract or agreement.

D. Crime Or Fraud

Advertising injury or personal injury arising out of any criminal or fraudulent conduct committed by or with the consent or knowledge of the insured.

E. Expected Or Intended Injury

Advertising injury or personal injury arising out of an offense, committed by or on behalf of the insured, that:

1. is intended by such insured; or

2. would be expected from the standpoint of a reasonable person in the circumstances of such insured; to cause injury.

F. Failure To Conform To Representations Or Warranties

Advertising injury or personal injury arising out of the failure of goods, products or services to conform with any electronic, oral, written or other representation or warranty of durability, fitness, performance, quality or use.

G. Internet Activities

Advertising injury or personal injury arising out of:

1. controlling, creating, designing or developing of another's Internet site;

2. controlling, creating, designing, developing, determining or providing the content or material of another's Internet site;

3. controlling, facilitating or providing, or failing to control, facilitate or provide, access to the Internet or another's Internet site; or

4. publication of content or material on or from the Internet, other than material developed by the insured or at the direction of the insured.

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H. Media Type Business

Advertising injury or personal injury arising out of an offense committed by or on behalf of an insured whose business is advertising, broadcasting, cablecasting, publishing, telecasting or telemarketing.

This exclusion does not apply to personal injury caused by an offense described in subparagraphs A., B. or C. of the definition of personal injury.

I. Prior Offenses

Advertising injury or personal injury arising out of any offense first committed before the beginning of the policy period.

J. Publications With Knowledge Of Falsity

Advertising injury or personal injury arising out of any electronic, oral, written or other publication of content or material by or with the consent of the insured:

1. with knowledge of its falsity; or

2. if a reasonable person in the circumstances of such insured would have known such content or material to be false.

K. Employment-Related Practices

1. any damages sustained at any time by any person, whether or not sustained in the course of employment by any insured, arising out of any employment-related act, omission, policy, practice or representation directed at such person, occurring in whole or in part at any time by,

a. arrest, detention or imprisonment;

b. breach of any express or implied covenant;

c. coercion, criticism, humiliation, prosecution or retaliation;

d. defamation or disparagement;

e. demotion, discipline, evaluation or reassignment;

f. discrimination, harassment or segregation;

g. i. eviction; or

ii. invasion or other violation of any right of occupancy;

h. failure or refusal to advance, compensate, employ or promote;

i. invasion or other violation of any right of privacy or publicity;

j. termination of employment; or

k. other employment-related act, omission, policy, practice, representation or relationship in connection with any insured at any time.

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 damages with or repay someone else who must pay damages because of any of the foregoing.

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L. Wrong Description Of Prices

Advertising injury or personal injury arising out of the wrong description of the price of goods, products or services.

M. Intellectual Property Laws And Rights

Any actual or alleged bodily injury, property damage, advertising injury or personal injury arising out of, giving rise to or in any way related to any actual or alleged:

1. assertion; or

2. infringement or violation;

by any person or organization (including any insured) of any intellectual property law or right, regardless of whether this insurance would otherwise apply to all or part of any such actual or alleged injury or damage in the absence of any such actual or alleged assertion, infringement or violation.

This exclusion applies, unless such injury:

1. is caused by an offense described in the definition of advertising injury; and

2. does not arise out of, give rise to or in any way relate to any actual or alleged assertion, infringement or violation of any intellectual property law or right, other than one described in the definition of advertising injury.

Coverage 11 - Liability for Alcohol Beverage Service

The Company will promptly pay on behalf of the insured all sums which the insured becomes legally obligated to pay as damages because of bodily injury or property damage caused by an occurrence resulting from the insured's aviation operations during the policy period arising out of the serving or giving of any alcoholic beverage at or from the insured’s premises or any aircraft covered by the Policy.

The insurance provided by Coverage 11 is excess insurance.

Coverage 12 - Liability for Incidental Medical Malpractice

The Company will promptly pay on behalf of the insured all sums which the insured becomes legally obligated to pay as damages because of bodily injury caused by an occurrence resulting from the insured's aviation operations during the policy period arising out of "Incidental Medical Malpractice".

"Incidental Medical Malpractice" means injury arising out of the rendering of or failure to render, during the policy period, the following services:

A. medical, automatic external defibrillator, surgical, dental, x-ray, or nursing service or treatment or the furnishing of food or beverages in connection therewith; or

B. the furnishing or dispensing of drugs or medical, dental or surgical supplies or appliances.

C. The insurance provided by Coverage 12 shall not apply to:

1. expenses incurred by the insured for first-aid to others at the time of an accident;

2. any insured engaged in the business or occupation of providing any of the services described under "Incidental Medical Malpractice" above;

3. injury caused by an indemnitee if such indemnitee is engaged in the business or occupation of providing any of the services described under "Incidental Medical Malpractice" above; or

4. the failure to render automatic external defibrillator treatment, if the aircraft or premises are not equipped with automatic external defibrillator units.

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Coverage 13 - Liability for Use of Premises

The Company will promptly pay on behalf of the insured all sums which the insured becomes legally obligated to pay as damages because of bodily injury or property damage caused by an occurrence resulting from the insured's aviation operations during the policy period arising out of the ownership, maintenance or use of premises.

The insurance provided by Coverage 13 is excess insurance.

Coverage 14 - Liability for the Operation of Mobile Equipment

The Company will promptly pay on behalf of the insured all sums which the insured becomes legally obligated to pay as damages because of bodily injury or property damage caused by an occurrence resulting from the insured's aviation operations during the policy period arising out of ownership, maintenance or use of mobile equipment.

The insurance provided by Coverage 14 is excess insurance.

Coverage 15 - Liability for the Operation of an Auto while on Airport Premises

The Company will promptly pay on behalf of the insured all sums which the insured becomes legally obligated to pay as damages because of bodily injury or property damage caused by an occurrence resulting from the insured's aviation operations during the policy period arising out of ownership, lease, rental, arrangement or use of autos while on airport premises exclusive of any public roadways and parking areas.

The insurance provided by Coverage 15 is excess insurance.

Coverage 16 - Liability for the Sale of Aircraft and Aircraft Products and Services

The Company will promptly pay on behalf of the insured all sums which the insured becomes legally obligated to pay as damages because of bodily injury or property damage caused by an occurrence resulting from the insured's aviation operations during the policy period arising out of the:

A. sale or relinquishment from exclusive written lease, by the named insured, of a scheduled aircraft or any aircraft sold or relinquished prior to the policy period;

B. furnishing to others, by the insured, any materials, parts, equipment, fuel, maintenance, aircraft services, used for or in connection with aircraft, premises or mobile equipment;

C. furnishing to others, by the insured, of food or beverages in connection with the operation of aircraft or premises.

The insurance provided by Coverage 16 is excess insurance and will only apply if the bodily injury or property damage occurs away from the insured's premises, after physical possession of the aircraft, materials, parts, equipment, fuel, food or beverages have been relinquished to others and any services have been completed.

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Coverage 17 - Liability for Hangarkeeper Operations

The Company will promptly pay on behalf of the insured all sums which the insured becomes legally obligated to pay as damages because of "loss" to aircraft (subject to the deductible shown in the Declarations if applicable unless such "loss" results from fire or explosion or while the aircraft is dismantled and being transported) occurring while such aircraft is in the care, custody or control of the insured for safekeeping, storage, service or repair. However:

A. The amount the Company will pay for damages is limited as described under Declarations, "Item 5.

Limits of the Company's Liability", Coverage 17;

B. If repairs are made by the insured, the Company will not pay more than:

1. the insured's actual net cost for necessary material and parts of like kind and quality; and

2. the insured's actual wages for labor at current straight time rates with no premium for overtime, plus 150% of such wages as an allowance for overhead and supervision. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under Section Two – Defense, Settlement and Supplementary Payments of Liability Claims.

C. Coverage 17 applies to damages because of “loss” to aircraft only if the “loss” occurs during the policy period.

D. The insurance provided by Coverage 17 shall not apply to:

1. the insured’s liability under any agreement to be responsible for “loss”;

2. “loss” to robes, wearing apparel, personal effects or merchandise;

3. to “loss” or damage to aircraft or parts of any aircraft:

a. owned by, leased to, rented to or loaned to the insured or partner(s) of the insured;

b. owned by, leased to, rented to or loaned to an officer or employee of the insured unless the property is an aircraft in the insured’s custody under an agreement for which a charge has been made;

4. “loss” due to theft or conversion caused in any way by the insured’s employees, partners or shareholders;

5. “loss” to insured’s work, arising out of it or any part of it;

6. “loss” to aircraft while in-flight; or

7. liability for property damage to non-owned aircraft and temporary substitute aircraft under Coverage 3.

Definition applicable to Coverage 17:

“Loss” means direct and accidental loss of or damage to tangible property.

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Coverage 18 - Liability for Garagekeeper Operations

The Company will promptly pay on behalf of the insured all sums which the insured becomes legally obligated to pay as damages because of property damage to an auto occurring while such auto is in the care, custody or control of the insured for valet parking, towing, safekeeping, storage or while on airport premises for any other incidental use by the insured.

The insurance provided by Coverage 18 shall not apply to:

A. the insured's liability under any agreement to be responsible for "loss";

B. "loss" to robes, wearing apparel, personal effects or merchandise;

C. "loss" or damage to an auto or parts of any auto:

1. owned by, leased to, rented to or loaned to the insured or partner(s) of the insured;

2. owned by, leased to, rented to or loaned to an officer or employee of the insured unless the auto is in the insured's custody due to towing, or for valet parking for which a charge has been made.

D. "loss" due to theft or conversion caused in any way by the insured, its employees, its partners or shareholders.

Definition applicable to Coverage 18:

"Loss" means direct and accidental loss of or damage to tangible property.

Section Two – Defense, Settlement and Supplementary Payments

A. The Company has the right and duty to defend any suit against the insured seeking damages because of bodily injury, personal injury, advertising injury, or property damage covered by the Policy, even if any of the allegations of the suit are groundless, false or fraudulent. The Company may make any investigation and settlement of any claim or suit as it deems expedient. The Company will not be obligated to pay any expense, claim or judgment or to defend any suit after the applicable limit of liability has been exhausted by the payment of judgment(s) or settlement(s).

B. The Company will promptly pay in addition to the applicable limit of liability:

1. all the Company's expenses and all costs taxed against the insured in any suit the Company is required to defend including:

a. any pre-judgment interest awarded against the insured on that part of the judgment the Company is required to pay under the terms of the Policy;

b. all interest on the amount of any judgment that the Company is required to pay under the terms of the Policy which accrues after the entry of the judgment and before the Company has paid, tendered or deposited in to court that portion of the judgement owed by the Company; and

c. any costs for arbitration alleging damages covered by the Policy which the insured must or may submit to;

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2. premium on appeal bonds required or, premiums on bonds to release attachments in any suit defended by the Company for any amount not exceeding the applicable limit of liability;

3. the cost of bail bonds, up to $10,000 for each incident, required of the insured because of an occurrence or violation of law or a regulation for civil aviation arising out of the insured's aviation operations and involves the use of aircraft or premises. However, the Company has no obligation to furnish or apply for any bail bonds;

4. all reasonable expenses incurred by the insured for first aid, medical and surgical relief that is imperative at the time of an accident because of bodily injury covered by the Policy;

5. all reasonable expenses incurred by the insured at the Company's request; however, the Company will not pay more than $500.00 per day for each of the insured's employees for the loss of earnings, wages or salaries; and

6. all expenses incurred by the insured that have been approved in advance by the Company or the Aviation Managers.

Section Three – Physical Damage Coverages

Coverage 19 - Physical Damage Coverage for Scheduled Aircraft (including Ingestion and Emergency Landing)

The Company will promptly pay for any physical damage to a scheduled aircraft that occurs during the policy period including its disappearance or theft, less any applicable deductible. A scheduled aircraft shall be considered missing under disappearance or stolen under theft if such aircraft is unable to be located for fifteen

(15) days after reported missing or stolen. In addition, if an unexpected event causes a scheduled aircraft to make a landing in a location where it cannot safely depart and there is no physical damage, the Company will pay the reasonable costs of transporting the scheduled aircraft to the nearest suitable airport.

Coverage 20 - Physical Damage Coverage for Spare Engines and Spare Parts Including Transit

The Company will promptly pay for physical damage to or theft of spare engines and spare parts that are owned by the Named Insured or for which the Named Insured is legally responsible.

The insurance provided by Coverage 20 is excess insurance.

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Coverage 21 - Automatic Insurance for Increased Value of Scheduled Aircraft or Spare Engines and Spare Parts

If the value of a scheduled aircraft is increased during the policy period because of modifications or the addition of equipment or, the named insured modifies or acquires additional spare engines or spare parts, the applicable insurance provided by the Policy under Section Three - Physical Damage Coverage will apply to the increased value. The amount of insurance in the Declarations will automatically increase by the actual cost to the named insured of the modifications, equipment or additional spare engines or spare parts as evidenced by the named insured’s records provided:

A. the named insured reports to the Aviation Managers any increase in value as soon as possible after completion of modifications or additions;

B. that unless the Aviation Managers has agreed in advance, the maximum automatic increase of value will not exceed:

1. the Maximum Automatic limit for Physical Damage to a scheduled aircraft shown in the Declarations, "Item 5. Limits of the Company's Liability" as shown under Coverage 21 in the Declarations; or

2. the Maximum Automatic Limit for spare engines and spare parts shown in the Declarations, "Item 5. Limits of the Company's Liability", as shown under Coverage 21 in the Declarations; and

C. any additional premiums for the increased limits are paid by the named insured.

Coverage 22 - Physical Damage Coverage for Mechanics Tools

This insurance is extended to cover tools of the insured's employee mechanics against direct and accidental…