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%01" '*100 Contract Number : 03F -006
Agreement to Provide
Mandated Cost Claiming Services
THIS AGREEMENT, entered into this day of U S 2003 and
effective immediately by and between MAXIMUS, Inc. (hereinafter Consultant) and the City
of Arcadia (hereinafter "City "),
WHEREAS, Article XIIIB of the California State Constitution provides that cities may recover
costs associated with carrying out programs mandated by the State of California,
WHEREAS, the City desires to obtain maximum reimbursement for costs incurred in carrying
out State mandated programs, and has determined that engaging the Consultant to assist in the
mandated cost claim preparation process is the most economical and cost effective means for
preparing the City's state mandated cost claims; and
WHEREAS, the Consultant is staffed with personnel knowledgeable and experienced in
determining the costs of governmental programs and in the submission of cost claims to the State
of California, and
WHEREAS, the City desires to engage the Consultant to assist in developing, submitting, and
negotiating cost claims pertaining to state mandated programs.
NOW, THEREFORE, the parties hereto mutually agree as follows:
1. Scope of Services
The Consultant shall prepare claims for reimbursable state mandated costs as provided
herein.
A. Annual State Mandated Cost Reimbursement Claims
The Consultant shall prepare and file applicable actual annual state mandated cost
reimbursement claims for the 2002 -2003 fiscal year and estimated claims for the 2003-
2004 fiscal year. The fiscal year 2002 -2003 actual claims to be filed are claims that are
included in the State Controller's Claiming Instructions that provide for timely filed
claims to be submitted by January 15, 2004.
B. All Other Claims for Which Claiming Instructions Are Issued in FY 2003-
2004
With the exception of the claims in Scope of Services I.A. above, the Consultant shall
prepare, submit and file on the City's behalf, all other eligible actual and estimated state
mandated cost reimbursement claims for which State Controller Claiming Instructions are
issued in the 2003 -2004 fiscal year.
City of Arcadia - 1 - July 25, 2003
'"MOO Contract Number: 03F -006
2. Consultant Claim Filing Requirements
The Consultant shall file these claims to the extent that appropriate documentation is
available and verifiable and that claim amounts exceed $1,000 per claim.
3. Costs and Method of Compensation
Scope of Services LA. & B. - Annual State Mandated Cost Reimbursement Claims
& All Other New Claims for Which Claiming Instructions are Issued in FY 2003-
2004
For all services provided pursuant to Scope of Services 1.A. & B., the City agrees to pay
the Consultant a fixed fee in the amount of ten thousand four hunded dollars ($10,400).
Half of that fee five thousand two hundred dollars ($5,200) will be due in the 2003 -2004
fiscal year and the remaining half of the fee $5,200 on a deferred payment basis which
will be due when the City receives at least $50,000 in reimbursement from the State for
the claims prepared by the Consultant.
The fixed fee non - deferred ($5,200) portion will be billed in four equal installments:
Twenty -five percent (25 %) or $1,300.00 of the fixed fee shall be due and payable on
September 1, 2003, December 1, 2003, March 1, 2004, and June 1, 2004.
The deferred payment fee will be billed to the City after claims are filed. Payment will
be due and payable after the City has received at least $50,000 from the State in
compensation for the claims prepared by the Consultant. Payment will be due within
thirty (30) days after the City receives a statement from the Consultant, which specifies
the amounts received from the state and the payment due.
4. Services and Materials to be Furnished by the City
The Consultant shall provide guidance to the City in determining the data required for
claims submission. The Consultant shall assume all data so provided to be correct. The
City further agrees to provide all specifically requested data, documentation and
information to the Consultant in a timely manner. Consultant shall make its best effort to
file claims in a timely manner pursuant to Scope of Services. Consultant shall not be
liable for claims that cannot be filed as a result of inadequate data or data provided in an
untimely manner.
For purposes of this Agreement, data that is requested by the Consultant must be provided
within three weeks of the request, or three weeks prior to the filing deadline, whichever
would come first, to be deemed to have been received in a timely manner. It is the
responsibility of the City to provide the Consultant with payment information upon
receipt of disbursements from the State for any and all claims filed pursuant to this
agreement.
City of Arcadia - 2 - July 25, 2003
M
5. Third Parties
`-"* Contract Number : 03F -006
The City and the Consultant are the only parties to this Agreement and are the only
parties entitled to enforce its terms. Nothing in this Agreement gives, is intended to give,
or shall be construed to give or provide, any right or benefit, whether directly or indirectly
or otherwise, to third persons.
6. Consultant Liability if Audited
The Consultant will assume all financial and statistical information provided to the
Consultant by City employees or representatives is accurate and complete. Any
subsequent disallowance of funds paid to the City under the claims for whatever reason is
the sole responsibility of the City.
7. Indirect Costs
The cost claims to be submitted by the Consultant may consist of both direct and indirect
costs. The Consultant may either utilize the ten percent (10 %) indirect cost rate allowed
by the State Controller or calculate a higher rate if City records support such a
calculation. The Consultant by this Agreement is not required to prepare a central service
cost allocation plan or departmental indirect cost rate proposals for the City.
8. Consultant Assistance if Audited
If audited, the Consultant shall make workpapers and other records available to the State
auditors. If requested by the City, the Consultant shall provide assistance to the City in
defending claims at the desk audit level if an audit results in a disallowance of at least
twenty percent (20 %) or seven hundred fifty dollars ($750), whichever is greater.
Reductions of less than twenty percent (20 %) or seven hundred fifty dollars ($750) shall
not be contested by the Consultant. Nothing in this section or any part of this Agreement
shall be construed to include Incorrect Reduction Claims preparation.
9. Insurance
Consultant shall acquire and maintain appropriate general liability insurance, workers'
compensation insurance, automobile insurance, and professional liability insurance. See
Attachment A — Insurance Provisions — Section 3.2.10.
10. Changes
The City may, from time to time, require changes in the scope of services of the
Consultant to be performed hereunder. Such changes, which are mutually agreed upon by
City of Arcadia - 3- July 25, 2003
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Contract Number: 0317-006
and between the City and the Consultant, shall be incorporated in written amendment to
this agreement.
11. Termination of ALyreement
If, through any cause, the Consultant shall fail to fulfill in a timely and proper manner its
obligation under this agreement, the City shall thereupon have the right to terminate this
agreement by giving written notice to the Consultant of such termination and specifying
the effective date thereof, at least five (5) days before the effective date of such
termination.
12. City Contact Person
The City designates the following individual as contact person for this contract:
Name: Tracey L. Hause
Telephone:
(626) 574 -5425
Title: Administrative Services DirectOFax: (626) 821 -0092
Address: 240 W. Huntington Drive PO Box 60021 Arcadia CA 91066 -6021
OFFER IS MADE BY CONSULTANT
By.
Allan Burdick, Vice President
MAXIMUS, Inc.
Date: July 25, 2003
Approved as to form:
,
Stephen P. Deitsch
City Attorney
OFFER IS ACCEPTED BY CITY
By:
City Official- William R: Kelly
City manager
Date: a 14*
Concur:
Tracey L. Hause Date
City of Arcadia - 4 - July 25, 2003
%&or ` o Attachment "A"
3.2.10 Insurance.
3.2.10.1 Time for Compliance. Consultant shall not commence
Work under this Agreement until it has provided evidence satisfactory to the City that it has
secured all insurance required under this section. In addition, Consultant shall not allow any
subcontractor to commence work on any subcontract until it has provided evidence satisfactory
to the City that the subcontractor has secured all insurance required under this section.
3.2.10.2 Minimum Requirements. Consultant shall, at its expense,
procure and maintain for the duratiop, of the Agreement insurance against claims for injuries to
persons or damages to property which may arise from or in connection with the performance of
the Agreement by the Consultant, its agents, representatives, employees or subcontractors
directly reporting to the Consultant. Consultant shall also require all of its subcontractors to
maintain the same insurance for the duration of the Agreement. Such insurance shall meet at
least the following minimum levels of coverage:
(A) Minimum Scope of Insurance. Coverage shall be at least as
broad as the latest version of the following: (1) General Liability: Insurance Services Office
Commercial General Liability coverage (occurrence form CG 0001) or equivalent; (2)
Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 0001,
code 1 (any auto) or equivalent; and (3) Workers' Compensation and Employer's Liability:
Workers' Compensation insurance as required by the State of California and Employer's
Liability Insurance.
(B) Minimum Limits of Insurance. Consultant shall maintain
limits no less than: (1) General Liability: $1,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance or other form with
general aggregate limit is used, either the general aggregate limit shall apply separately to this
Agreement/location or the general aggregate limit shall be twice the required occurrence limit;
(2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3)
Workers' Compensation and Employer's Liability: Workers' Compensation limits as required by
the Labor Code of the State of California. Employer's Liability limits of $1,000,000 per accident
for bodily injury or disease.
3.2.10.3 Professional Liabilitv. Consultant shall procure and
maintain, and require its sub - consultants to procure and maintain, for a period of two (2) years
following completion of the Project, errors and omissions liability insurance appropriate to their
profession. Such insurance shall be in an amount not less than $1,000,000 per claim, and shall
be endorsed to include contractual liability.
3.2.10.4 Insurance Endorsements. The insurance policies shall
contain the following provisions, or Consultant shall provide endorsements on forms supplied or
approved by the City to add the following provisions to the insurance policies:
(A) General Liabilitv. The general liability policy shall be
endorsed to state that: (1) the City, its directors, officials, officers, employees, agents and
volunteers shall be covered as additional insured with respect to the Work or operations
performed by or on behalf of the Consultant, including materials, parts or equipment furnished in
DMGattachment A
A -1
10V Attachment "A',
connection with such work; and (2) the insurance coverage shall be primary insurance as respects
the City, its directors, officials, officers, employees, agents and volunteers, or if excess, shall
stand in an unbroken chain of coverage excess of the Consultant's scheduled underlying
coverage. Any insurance or self - insurance maintained by the City, its directors, officials,
officers, employees, agents and volunteers shall be excess of the Consultant's insurance and shall
not be called upon to contribute with it in any way.
(B) Automobile Liability. 'The automobile liability policy shall
be endorsed to state that: (1) the City, its directors, officials, officers, employees, agents and
volunteers shall be covered as additional insureds with respect to the ownership, operation,
maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the
Consultant or for which the Consultant is responsible; and (2) the insurance coverage shall be
primary insurance as respects the City, its directors, officials, officers, employees, agents and
volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Consultant's
scheduled underlying coverage. Any insurance or ' self-insurance maintained by the City, its
directors, officials, officers, employees, agents and volunteers shall be excess of the Consultant's
insurance and shall not be called upon to contribute with it in any way.
(C) Workers' Compensation and Employers Liability
Coverage. The insurer shall agree to waive all rights of subrogation against the City, its directors,
officials, officers, employees, agents and volunteers for losses paid under the terms of the
insurance policy which arise from work performed by the Consultant under this agreement.
(D) All Coverages. Each insurance policy required by this
Agreement shall be endorsed to state that: (A) coverage shall not fall below the required limits
of this contract except after thirty (30) days prior written notice by certified mail, return receipt
requested, has been given to the City, and (B) any failure to comply with reporting or other
provisions of the policies, including breaches of warranties, shall not affect coverage provided to
the City, its directors, officials, officers, employees, agents and volunteers.
3.2.10.5 Separation of Insureds, No Special Limitations. All
insurance required by this Section shall contain standard separation of insureds provisions. In
addition, such insurance shall not contain any special limitations on the scope of protection
afforded to the City, its directors, officials, officers, employees, agents and volunteers.
3.2.10.6 Deductibles and Self - Insurance Retentions. Consultant
has ample insurance coverage in place to meet and satisfy the insurance requirements of
this contract.
3.2.10.7 Acceptability of Insurers. Insurance is to be placed with
insurers with a current A.M. Best's rating no less than A:VII, licensed to do business in
California, and satisfactory to the City.
3.2.10.8 Verification of Coverage. Consultant shall furnish City
with original certificates of insurance and endorsements effecting coverage required by this
Agreement on forms satisfactory to the City. The certificates and endorsements for each
insurance policy shall be signed by a person authorized by that insurer to bind coverage on its
behalf, and shall be on forms provided by the City if requested. All certificates and
DMaattach=nt A
A -2
Attachment "A"
endorsements must be received and approved by the City before work commences. The City
reserves the right to require complete, certified copies of all required insurance policies, at any
time.
DMQattachment A
A -3
PRODUCER
MARSH USA INC.
1255 23rd STREET, NW
SUITE 400
WASHINGTON, DC 20037
Attn: PATTY MUNIZ 202 263 7600
500625 -OPROF -ONLY- te1Er10,i'iIL D
INSURED
MAXIIVIUS, INC.; ANI LL suasi®)a�r`jR MAY 12 2003
11419 SUNSET HILLS ROAD
RESTON, VA 20190
CITY OF ARCADIA
CITY CLERK
{ ' 9, � ")` } '�'i DATE (MM /DD/YY)•
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
COMPANIES AFFORDING COVERAGE
COMPANY
A FEDERAL INSURANCE CO \Y1
COMPANY
B ATLANTIC MUTUAL INSURANCE COMPANY 1 , V
COMPANY EXECUTIVE RISK SPECIALTY INS CO A T L X V' /
COMPANY
D
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
CO
LTR
TYPE OF INSURANCE
POLICY NUMBER
POLICY EFFECTIVE
DATE (MM /DD/YY)
POLICY EXPIRATION
DATE (MM /DD/YY)
LIMITS
A
GENERAL LIABILITY
X COMMERCIAL GENERAL LIABILITY
CLAIMS MADE Fx_1 OCCUR
OWNERS & CONTRACTOR'S PROT
3537 -42 -97
04/01/03
04(0'f,/A
GENERAL AGGREGATE
$ 2+000,000
PRODUCTS - COMP /oP AGG
$ 2,000,000
PERSONAL & ADV INJURY
$ 1,000,000
EACH OCCURRENCE
$ 1,000,000
FIRE DAMAGE (Any one fire )
$ 1,000,000
MED EXP (Any one person )
$ 10,000
A
A
A
AUTOMOBILE
LIABILITY
ANY AUTO
ALL OWNED AUTOS
SCHEDULED AUTOS
HIRED AUTOS
NON -OWNED AUTOS
74978992(AOS)
74978993 (TX)
74978994 (VA)
04/01/03
04/01/03
04101/03
Q%�,
COMBINED SINGLE LIMIT
$ 1,000,000
X
BODILY INJURY
(Per person)
$
X
BODILY INJURY
(Per accident)
$
X
PROPERTY DAMAGE
$
GARAGE LIABILITY
ANY AUTO
AUTO ONLY - EA ACCIDENT
$
OTHER THAN AUTO ONLY:
4
EACH ACCIDENT
$
AGGREGATE
$
EXCESS LIABILITY
UMBRELLA FORM
OTHER THAN UMBRELLA FORM
EACH OCCURRENCE
$
AGGREGATE
$
$
B
B
WORKERS COMPENSATION AND
EMPLOYERS' LIABILITY
THE PROPRIETOR/ n INCL
PARTNERS/EXECUTIVE I(—jl
OFFICERS ARE: EXCL
400- 53 -13 -82 (OR,WI)
400- 53 -13 -83 (AOS)
04/01/03
04/01/03
.,
0(l
i
X TORY LIMITS ER
EACH ACCIDENT
$ 1,000,000
DISEASE - POLICY LIMIT
$ 1,000,000
DISEASE - EACH EMPLOYEE
is 1,000,000
C PROFESSIONAL LIAB 8165 -7146 05/01/03 105/01/04 1,000,000
DESCRIPTION OF OPERATIONS /LOCATIONSIVEHICLESISPECIAL ITEMS
THE CITY OF ARCADIA, ITS DIRECTORS, OFFICIALS, OFFICERS, EMPLOYEES, AGENTS AND VOLUNTEERS ARE INCLUDED AS ADDITIONAL
INSUREDS FOR GENERAL LIABILITY /AUTOMOBILE LIABILITY, BUT ONLY AS RESPECTS THE OPERATIONS OF THE NAMED INSURED. THE ABOVE
COVERAGES ARE PRIMARY AND NON- CONTRIBUTORY. WAIVER OF SUBROGATION APPLIES WHEN CONTRACTUALLY REQUIRED.
CITY OF ARCADIA
ATTN: JUNE D. ALFORD, CITY CLERK
240 W. HUNTINGTON DR.
P.O. BOX 60021
ARCADIA, CA 91066
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE
EXPIRATION DATE THEREOF, THE INSURANCE COMPANY WILL ENDEAVOR TO MAIL
30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT,
BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF
ANY KIND UPON THE COMPANY, ITS AGENTS OR REPRESENTATIVES.
Timothy M. Sasser
a
o w
PRODUCER
MARSH USA INC.
1255 23rd STREET, NW
COMPANY
SUITE 400
E
WASHINGTON, DC 20037
Attn: PATTY MUNIZ 202 263 7600
COMPANY
F
500625- OPROF -ONLY-
INSURED
COMPANY
MAXIMUS, INC., AND ALL SUBSIDIARIES
11419 SUNSET HILLS ROAD
G
RESTON, VA 20190
COMPANY
H
}' DATEIMMIDDIYYI
05/01/03
COMPANIES AFFORDING COVERAGE
MAXIMUS, INC. AND ALL SUBSIDIARIES
11419 SUNSET HILLS ROAD
RESTON, VA 20190
POLICY NUMBER: 3537 -42 -97 (4/1/03 - 4/1/04) COMMERCIAL GENERAL LIABILITY
CGL FORM #80 02 2305 (EQUIVALENT TO CGL FORM #CG 20 10 03 97)
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY,
ADDITIONAL INSURED-.OWNERS, LESSEES OR
CONTRACTORS- SCHEDULED PERSON OR ORGANIZATION
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
SCHEDULE
Name of Person or Organization:
CITY OF ARCADIA, ITS DIRECTORS, OFFICIALS, OFFICERS, EMPLOYEES, AGENTS AND VOLUNTEERS.
(If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.)
Who Is An Insured (Section II) Is amended to include as an Insured the person or organization shown in the Schedule, but only with respect to liability arising
out of your ongoing operations performed for that insured.
The coverage provided by this endorsement is primary insurance over any other insurance.
CITY OF ARCADIA
ATTN: JUNE D. ALFORD, CITY CLERK
240 W. HUNTINGTON DR.
P.O. BOX 60021
ARCADIA, CA 91066
AUTHORIZED REPRESENTATIVE
MARSH USA INC. BY
Timothy M. Sasser
INCLUDES COPYRIGHTED MATERIAL OF ACORD CORPORATION WITH ITS PERMISSION.
MJ
n
CA 0001 0797
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. Rotor to Section V-- Definitions.
SECTION I-- COVERED AUTOS
ITEM TWO of the declarations shows the "autos' that are
covered "autos" for each of your coverages, The following
numerical symbols describe the "autos" that may be cov-
ered "autos ". The symbols entered next to a coverage on
the Declarations 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 Coverage any
"trailers" you don't own while attached to
power units you own), This includes those
"autos" you acquire ownership of after the pol-
icy begins,
3 = OWNED PRIVATE PASSENGER "AUTOS"
ONLY. Only the private passenger "autos" you
own. This includes those private passenger
"autos" you acquire ownership of after the pol-
icy begins.
4 = OWNED "AUTOS" OTHER THAN PRIVATE
PASSENGER "AUTOS" ONLY. Only those
"autos" you own that are not of the private pas-
senger type (and for Liability 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 slate where they
are licensed or principally garaged, This in-
cludes those "autos" you acquire ownership of
after the policy begins provided they are re-
quired to have No -Fault benefits in the slate
where they are licensed or principally garaged.
6 OWNED "AUTOS" SUBJECT TO A COMPUL-
SORY UNINSURED MOTORISTS LAW. Only
those "autos" you own that because of the law
In the state whore they are licensed or princi-
pally garaged are required to have and cannot
reject Uninsured Motorists Coverage. This in-
CA 196 t7 -D7)
CA 00 01 07 97
cludes those "autos" you acquire ownership of
after the policy begins provided they are sub-
ject to the same state uninsured motorists re-
quirement.
7 SPECIFICALLY DESCRIBED "AUTOS ". Only
those "autos" described In ITEM THREE of the
Declarations for which a premium charge is
shown (and for Liability Coverage any "trailers"
you don't own while attached to any 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 tease, hire, rent or bor-
row from any of your "employees" or partners
or members of their households.
9 = NONOWNED ''AUTOS" ONLY, Only those
"autos" you do not own, lease, hire, rent or bor-
row that are used in connection with your busi-
ness. This includes "autos" owned by your
"employees ", partners (if you are a partner-
ship). members (if you are a limited liability
company), or members of their hou8."- ►Bolds but
only while used in your business or yaur per-
sonal affairs.
B. OWNED AUTOS YOU ACQUIRE AFTER THE POL-
ICY 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 described for the remainder of the policy
period.
2. But, it symbol 7 is entered next to a coverage in
ITEM TWO of the Declarations. an "auto" you ac-
quire 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 an "auto' you pre-
viously 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
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If Liability Coverage is provided by this Coverage Form,
the following types of vehicles are also covered "autos"
for Liability Coverage:
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 "properly dam-
age" to which this insurance applies, caused by an
"accident" and resulting from the ownership, mainte-
nance or use of a covered "auto',
We will also pay all sums an "insured" legally must pay
as a "covered pollution cost or expense" to which this
insurance applies, caused by an "accident" and result -
Ing from the ownership, maintenance or use of covered
"autos ". However, we will only pay for the "covered
pollution cost or expense" If there is either "bodily in-
jury" or "property damage" to which this insurance ap-
plies that is caused by the same "accident ".
We have the right and duty to defend any "insured"
against a "suit' asking for such damages or a "covered
pollution cost or expense ". However, we have no duty
to defend any "insured" against a "suit" seeking dam-
ages for "bodily injury" or "property damage" or a
"covered pollution cost or expense" to which this insur-
ance 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
fudgments or settlements,
1. WHO I5 AN INSURED
The following are "insureds ":
a. You for any covered "auto ".
b. Anyone also while using with your permission
a covered "auto" you own, hire or borrow ex-
cept:
(1) The owner or anyone else from whom you
hire or borrow a covered "auto ". This ex-
page 2 of 10
M
ceptlon does not apply if the covered
"auto" is a "trailer" connected to a covered
"auto" you own.
(2) Your "employee" it the covered "auto" is
owned by that "employee' 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,
servicing, repairing, parking or storing
"autos" unless that business Is yours,
(4) Anyone other than your "employees', Part-
ners (it 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 partnership), or a
member (if you are a limited liability com-
pany) for a covered "auto" owned by him
or her or a member of his or her house-
hold.
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
In addition to the Limit of Insurance, we will
pay for the "insured ":
(1) All expenses we incur.
(2) Up to $2,000 for cost of bail bonds
(including bonds for related traffic law vio-
lations) required 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 de-
fend. but only for bond amounts within our
Limit of Insurance.
(4) All reasonable expenses incurred by the
"insured" at our request, including actual
loss of earning up to $250 a day because
of time off from work,
(5) All costs taxed against the "insured" in any
"suit" against the "insured" we defend.
(6) All interest on the full amount of any judg-
ment that accrues after entry of the judg-
ment in any "suit" against the "Insured" we
defend, but our duty to pay interest ends
when we have paid, offered to pay or de-
posited in court the part of the judgment
that is within our Limit of Insurance.
Copyright. Insurance Services Ofroe, Inc,. 1996
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CA 196 (7.97)
CA 00 01 07 97
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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
compulsory 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 carriers of passen.
gers or property.
(2) Provide the minimum amounts and types
of other coverages, such as no- fault, ro.
quired of out -of -state vehicles by the ju-
risdiction where the covered "auto' is
being used.
We will not pay anyone more than once for the
same elements of loss because of these ex-
tensions.
EXCLUSIONS
This insurance does not apply to any of the following:
1. EXPECTED OR INTENDED INJURY
"Bodily injury" or "property damage" expected or
intended from the standpoint of the "insured ".
M
M
}2, CONTRACTUAL
Liability assumed under any contract or agreement.
JIQLthis exclusion does not apply to liability for
dame °A�• �
tea. Assumed in a contract or agreement that is an
"insured contract" provided the "bodily injury"
or "property damage" occurs subsequent to the
execution of the contract or agreement; or
b. That the "insured" would have in the absence
of the contract or agreement.
3. WORKERS' COMPENSATION
Any obligation for which the "insured" or the
"insured's" insurer may be held liable under any
workers' compensation, disability benefits or un-
employment compensation law or any similar law.
4. EMPLOYEE INDEMNIFICATION AND EM-
PLOYER'S LIABILITY
"Bodily Injury" to:
a. An "employee" of the "insured" arising out of
and in the course of:
(1) Employment by the "insured "; or
(2) Performing the duties related to the con-
duct of the "insured's" business; or
b. The spouse, child, parent, brother or sister of
that "employee" as a consequence of para-
graph a. above.
CA 196 (7.97)
CA o0 0107 97
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 also who must pay
damages because of the injury.
But this exclusion does not apply to "bodily in-
jury' to domestic "employees" not entitled to
workers' compensation benefits or to liability
assumed by the "insured" under an "insured
contract ". Por the purposes of the Coverage
Form, a domestic "employee" is a person en-
gaged in household or domestic work per-
formed principally in Connection with a
residence premises.
S. FELLOW EMPLOYEE
"Bodily injury" to any fellow "employee" of the
"insured" arising out of and in the course of the fel-
low "employee's" employment or while performing
duties related to the conduct of your business.
6. CARE, CUSTODY OR CONTROL
"Property damage" to or "covered pollution 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 li-
ability assumed under a sidetrack agreement.
7. HANDLING OF PROPERTY
"Bodily injury" or "property damage" resulting 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 covered "auto"; or
b. After it is moved from the covered "auto' to the
place where it is finally delivered by the
"insured ".
9. MOVEMENT OF PROPERTY BY MECHANICAL
DEVICE
"Bodily injury" or "property damage" resulting from
the movement of property by a mechanical device
(other than a hand truck) unless the device is at-
tached to the covered "auto ".
9. OPERATIONS
"Bodily injury" or "property damage" arising out of
the operation of any equipment listed in paragraphs
6.b and 6.c. of the definition of "mobile equipment",
10, COMPLETED OPERATIONS
"Bodily Injury" or "property damage" arising out of
your work after that work has been completed or
abandoned,
In this exclusion, your work means:
Copyright, Insurance Services office, Inc., 1995
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