Exhibit_F,_Insurance_Requirements.docx

EXHIBIT F, INSURANCE TERMS AND CONDITIONS

1. GENERAL PROVISIONS APPLYING TO ALL POLICIES

I. Available Coverages/Limits - All coverages available to the Contractor shall also be available and applicable to the State.

K. Satisfying an SIR - All insurance required by this contract must allow the State to pay and/or act as the Contractor’s agent in satisfying any self-insured retention (SIR). The choice to pay and/or act as the Contractor’s agent in satisfying any SIR is at the State’s discretion.

L. Premiums – The Contractor shall be responsible for any premium, deductible, or self-insured retention in connection with any Required Insurance.

1) Operation of the vehicle by a driver who contributed to the accident while (and has been adjudged by the courts to have been) under the influence of alcohol (in excess of the legal limits) or any illegal non-prescription drug.

2) Operation or use of the vehicle for any intentionally illegal purposes.

3) Willful or wanton misconduct on the part of a driver. Willful or wanton misconduct is conduct which is committed with an intentional or reckless disregard for the safety of others or with an intentional disregard of a duty necessary to the safety of another’s property

4) Use or permitting the vehicle to carry unauthorized passengers.

5) Operation of the vehicle in a test race or contest.

6) Operation of the vehicle outside the continental United States except where such use is specifically authorized by the rental agreement. Operation across international boundaries unless specifically authorized at the time of rental. State of California policy requires that the appropriate state agency approve the out-of-country travel, that the Contractor is notified regarding the trip and that the DGS, Office of Risk and Insurance Management (ORIM) approved insurance is obtained for the trip. Operation of any vehicle that was not properly designed for that intended use.

3. CONTRACT INSURANCE REQUIREMENTS

The Contractor shall display evidence of the following on an ACORD certificate of insurance evidencing the following coverages:

State of California Department of General Services Statewide Travel Program 1700 National Drive Sacramento, CA 95834 B. Automobile Liability – The Contractor shall maintain motor vehicle liability with limits not less than $2,000,000 combined single limit per accident. Such insurance shall cover liability arising out of a motor vehicle including owned, hired and non-owned motor vehicles. The policy must be endorsed to include the State of California, its officers, agents and employees as additional insured, but only with respect to work performed under the contract. This coverage insures any auto while operated by employees of the named insured not renters of autos. The additional insured endorsement shall be provided with the certificate of insurance.

1) The policy must name the State of California, its officers, agents, and employees as additional insured, but only with respect to work performed under the contract.

C. Cyber Liability - The Contractor shall maintain Cyber Liability Insurance, with limits not less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by the Contractor in this agreement and shall include, but not be limited to, claims involving infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, alteration of electronic information, extortion and network security. The policy shall provide coverage for breach response costs as well as regulatory fines and penalties as well as credit monitoring expenses with limits sufficient to respond to these obligations.

D. Workers Compensation and Employers Liability – The Contractor shall maintain statutory worker’s compensation and employer’s liability coverage for all its employees who will be engaged in the performance of the Contract. In addition, employer’s liability limits of $1,000,000 are required. By signing this contract, the Contractor acknowledges compliance with these regulations.

1) A Waiver of Subrogation or Right to Recover endorsement in favor of the State of California must be attached to certificate.

a) Tire punctures or missing chunks of tread.

b) Impact Damage (body panels or undercarriage) defined as follows:

c) Soot, smoke or stain damage requiring professional cleaning.

5. DAMAGE LIABILITY

User Agency employees will not be subject to any fee for loss or collision damage waiver, and in the event of an accident, will not be responsible for loss or damage to the vehicle except as stated in this contract.

6. BILLING FOR DAMAGES

When loss or damage is due to an exception stated in Section 4. LOSS OF OR DAMAGE TO VEHICLE above, the Contractor will submit its bills directly to the employee’s User Agency. If the User Agency denies liability on the basis that the employee was not operating the vehicle within the scope of employment at the time of the loss, the Contractor shall handle the matter directly with the employee. Claims for damage to a vehicle will not include amounts for loss of use. Damages outlined in Section 4. LOSS OF OR DAMAGE TO VEHICLE will be paid for and direct billed to STP’s authorized form of payment. Additional accounts/payment methods shall be created to use for this sole purpose if DGS-STP or the User Agency deems appropriate.