Avsure Insurance Aircraft Aerial Application

AIRCRAFT AND AERIAL APPLICATION LIABILITY POLICY

WE THE INSURERS agree with the Insured, named in the Declarations made a part hereof, in consideration of the payment of the Premium, and in reliance upon the statements in the Declarations and subject to the Limits of Liability, Exclusions, Conditions and Other Terms of this Policy

INSURING AGREEMENTS

COVERAGE A - BODILY INJURY LIABILITY (EXCLUDING PASSENGERS, PILOT AND CREW)

To pay on behalf of the Insured all sums which the Insured shall become legally obligated to pay as damages, including damages for care and loss of services, because of bodily injury, sustained by any person, excluding any Passenger, pilot or member of the crew of the Aircraft whilst acting in their capacity as such caused by an Occurrence and arising out of ownership, maintenance or use of the Aircraft including Aerial Application (as herein defined)

COVERAGE B - PROPERTY DAMAGE LIABILITY

To pay on behalf of the Insured all sums which the Insured shall become legally obligated to pay as damages because of injury to or destruction of property, including the loss of use thereof, caused by an Occurrence and arising out of the ownership, maintenance or use of the Aircraft including Aerial Application (as herein defined)

COVERAGE C - SINGLE LIMIT-BODILY INJURY (EXCLUDING PASSENGERS, PILOT AND CREW) AND PROPERTY DAMAGE LIABILITY

To pay on behalf of the Insured all sums which the Insured shall become legally obligated to pay as damages, including damages for care and loss of services, because of bodily injury, sustained by any person excluding any Passenger, or pilot or member of the crew of the Aircraft whilst acting in their capacity as such and for damages because of injury to or destruction of property, including loss of use thereof, caused by an Occurrence and arising out of the ownership, maintenance or use of the Aircraft including Aerial Application (as herein defined).

The term "bodily injury" wherever used shall include death and sickness.

SUPPLEMENTARY PAYMENTS

In respect to claims covered by the Policy and irrespective of the appropriate limit of liability Insurers will:-

(a) pay all premiums on bonds to release attachments for an amount not in excess of the limit of liability of this Policy, all premiums on appeal bonds required in any such defended suit, but without any obligation to apply for or furnish any such bonds;

(b) defend in the name of the Insured and on his behalf any suit against the Insured alleging such bodily injury or injury to or destruction of property and seeking damages on account thereof even if such suit is groundless, false or fraudulent; but the Insurers shall be under no obligation to defray any law costs or to defend law suits against the Insured based on claims not covered under this Policy;

(c) pay expenses incurred by the Insured for such immediate medical and surgical relief to others as shall be imperative at the time of the accident;

(d) pay expenses incurred by the Insurers for investigation, adjustment and defence and reimburse the Insured for all reasonable expenses, other than loss of earnings, incurred at the Insurers' request.

AUTOMATIC INSURANCE OF NEWLY ACQUIRED AIRCRAFT

(a) If the Named Insured acquires ownership of another Aircraft Of similar type and so notifies the Insurers within thirty (30) days following the date of its delivery to him, such insurance as is afforded by this Policy applies also to such Aircraft as of such delivery date;

(b) This Insuring Agreement does not apply:-

(i) to any claim against which the Named Insured has other valid and collectible insurance; OR

(ii)except during the Policy period, but if such delivery date is prior to the effective date of this Policy the insurance applies as of such effective date.

The Named Insured shall pay the prescribed Additional Premium required because of the application of the insurance to such other Aircraft as stated in Condition 6 hereof.

TERRITORY OF USE

This Policy applies only whilst the Aircraft is within the Continental limits of the United States of America (excluding Alaska), Canada or the Republic of Mexico.

TWO OR MORE AIRCRAFT

When two or more Aircraft are insured hereunder the terms of this Policy shall apply separately to each.

EXCLUSIONS

THIS POLICY DOES NOT APPLY-.-

1. to the use of the Aircraft for any purpose other than those uses described in the Declarations; or while the Aircraft is neither owned operated nor in the care, custody or control of the Insured;

2. while the Aircraft is being flown by any person who does not comply with all of the requirements of Item 7 of the Declarations;

3. to injury to or destruction of any property owned or occupied by or rented to the Insured or any property in the care, custody or control of the Insured, or property as to which the Insured for any purpose is exercising physical control;

4. to injury to or destruction of any crops, pastures, trees or tangible property to which the Aerial Application is deliberately made whether in error or not;

5. to liability of others assumed by the Insured under any contract or agreement, oral or written unless such liability would have attached to the Insured even in the absence of such agreement;

6. to any obligation for which the Insured or his insurer may be held liable under any Workmen’s Compensation, Unemployment Compensation or disability Benefits law or under any similar Law; or to bodily injury of any employee of the Insured arising out of and in the course of his employment by the Insured or his sub-contractor;

7. to the application of any chemical within the area of any zoned residential area of any incorporated city or town unless specifically endorsed hereon;

8. to liability of the Farmer/Owner/Grower, unless specifically included hereunder and the appropriate Premium paid;

9 to bodily injury or property damage caused by or resulting from the use of inorganic arsenical preparations or compounds such as sodium arsenate, sodium arsenite and the like and/or dust formulations of defoliants or dessicants;

10. to bodily injury or property damage caused by or resulting from non-compliance by the Insured with the manufacturer's printed directions and/or any Federal or State Regulations or those of any appropriate authority in respect of the chemical or seed being applied;

11. to exemplary or punitive damages;

12. to war, hi-.jacking and other perils as more fully set forth in the attached WAR, HIJACKING AND OTHER PERILS EXCLUSION CLAUSE (AVN.48B);

13. to noise and other perils as more fully set forth in the attached NOISE AND POLLUTION AND OTHER PERILS EXCLUSION CLAUSE (AVN.46B), with paragraph 1 (b) deleted;

14. if the Insured does not comply with all air navigation and airworthiness orders and all other requirements and regulations issued by any competent authority and does not take all steps to ensure that such orders, requirements and regulations are strictly complied with by their agents and employees and that the Aircraft shall be airworthy at the commencement of each flight;

15. to the liability of one Insured to another Insured.

RADIOACTIVE CONTAMINATION EXCLUSION CLAUSE

This policy does not cover:-

(a) loss or destruction of or damage to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom

(b) any legal liability of whatsoever nature directly or indirectly caused or contributed to by or arising from ionising radiations or contamination by radioactivity from any source whatsoever.

DEDUCTIBLE

It is understood and agreed that in the event of a claim arising in respect of property damage resulting from Aerial Application, the Insured shall bear the first $500.00 of each and every occurrence.

It is further understood and agreed that the Insured shall remit to Insurers, or their representative, on demand, any portion of or whole amount of the Deductible to any claim, to be used by Insurers or their representatives in settlement of a claims covered under this Policy. Sums collected from the Insured under this Deductible provision shall be used solely for the purpose of extinguishing, in good faith, claims brought against the Insured, pursuant to authority to settle such claims afforded Insurers. All sums collected from the Insured by Insurers pursuant to this Deductible obligation, which are not ultimately employed for settlement of outstanding claims shall be returned to the Insured by Insurers without interest or other charge.

CONDITIONS

1. NOTICE OF OCCURRENCE

It is a mandatory condition of this Policy that IMMEDIATE NOTICE of any Occurrence likely to give rise to a claim shall be given to the Insurers or any of their representatives by or on behalf of the Insured as soon as the Insured or his responsible employees, agent or representative has knowledge thereof. The type of bodily injury or property damage from operations by the Insured is such that a determination as to whether the claimed bodily injury or property damage is embraced within the coverage of this Policy cannot be made until notice of the Occurrence which may possibly give rise to a claim is given to Insurers at the time of the Occurrence. It is a specific provision of this Policy that failure to comply with the provisions requiring IMMEDIATE NOTICE of the Occurrence which may possibly give rise to a claim shall be presumed to cause Insurers to suffer substantial prejudice, and such failure to give IMMEDIATE NOTICE shall automatically exclude coverage, and Insurers shall have no liability for such bodily injury or property damage.

2. NOTICE OF CLAIM OR SUIT

If a claim is made or suit is brought against the Insured, the Insured shall immediately forward to the Insurers every demand, notice, summons or other process received by him or his representatives.

3. ASSISTANCE AND CO-OPERATION OF THE INSURED

The Insured shall co-operate with the Insurers and, upon the Insurers' request, shall attend hearings and trials and shall assist in effecting settlements, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of suits. The Insured shall not except at his own cost, voluntarily make any payment, assume any obligation or incur any expense, other than such immediate medical and surgical relief to others as shall be imperative at the time of Occurrence.

4. CHANGES

Notice to any agent or knowledge possessed by any agent or by any other person shall not effect a waiver or a change in any part of this Policy or stop the Insurers from asserting any right under this Policy; nor shall any part of this Policy be waived or changed, except by Endorsement signed by the Insurers and issued to form part of this Policy.

5. ASSIGNMENT

This Policy shall not be assigned in whole or in part except with the consent of the Insurers verified by Endorsement signed by the Insurers and issued to form part of this Policy; if, however, the Named Insured shall die or be adjudged bankrupt or insolvent within the Policy period; this Policy, unless cancelled, shall, if written notice be given to Insurers within 30 (thirty) days after the date of such death or adjudication, cover:

(a) the Named Insured's legal representative as the Named Insured; and

(b) any person having proper temporary custody of the Aircraft, as an Insured, until the appointment and qualification of such legal representative but in no event for a period of more than 30 (thirty) days after the date of such death or adjudication.

6. CANCELLATION.SUBSTITUTION, ADDITION, DELETION, OR ALTERATION

This Policy may be cancelled by the Insured by surrender thereof or by mailing to the Insurers written notice stating when thereafter such cancellation shall be effective. This Policy may be cancelled by the Insurers by mailing to the Insured at the address shown in this Policy written notice stating when not less than ten days thereafter such Cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice and the effective date and hour of cancellation stated in the notice shall become the end of the Policy period. Delivery of such written notice either by the Insured or by the Insurers shall be equivalent to mailing.

If the Insurers cancel, Earned Premiums shall be computed pro rata. Premium adjustment may be made at the time cancellation is effected and, if not then made, shall be made as soon as practicable after cancellation becomes effective. The Insurers cheek or the cheek of their representative mailed or delivered as aforesaid shall be sufficient tender of any refund of Premium due to the Insured.

In the event of cancellation of this Insurance by the Insured or in the event of substitution, addition and deletion of Aircraft and/or alteration of cover, the Minimum Premium in respect of each Aircraft shall be calculated as set forth below, unless otherwise agreed by the Insurers. No return of premium will be made in respect of any Aircraft which has been the subject of a claim hereunder.

MINIMUM PREMIUM

Policy in force less than 31 days 33 '/,% of annual premium

31 days or more and less than 61 days 60% of annual premium

61 days or more and less than 91 days 75% of annual premium

91 days or more and less than 120 days 85% of annual premium

120 days or more 100% of annual premium

7. LlMITS OF LIABILITY

(a) The limit of liability stated in the Declarations as applicable to "each person" is the limit of the Insurers' liability for all damages arising out of bodily injury, sustained by one person in any one Occurrence; the limit of such liability stated as applicable to "each Occurrence" is, subject to the above provision respecting each person, the total limit of the Insurers' liability for all damages, arising out of bodily injury, sustained by two or more persons in any one Occurrence.

(b) The limit of liability stated in the Declarations for Coverage B is the limit of the Insurers' liability for all damages arising out of any one Occurrence.

(c) The limit of liability stated in the Declarations for Coverage C is the limit of the Insurers' liability for all damages arising out of any one Occurrence.

Notwithstanding the inclusion herein of more than one Insured whether by Endorsement or otherwise, the total liability of the Insurers in respect of any or all Insured’s shall not exceed the limit(s) stated in the Declarations.

8. OTHER INSURANCE

This insurance does not cover any liability which at the time of happening is insured by, or would but for the existence of this Policy, be insured by any other existing policy or policies except in respect of any excess beyond the amount which would have been payable under such other policy or policies if this insurance had not been effected.

9. SUBROGATION

In the event of any payment under this Policy, the Insurers shall be subrogated to all the Insured's rights of recovery therefor against any person or organisation and the Insured shall execute and deliver, instruments and papers and do whatever else is necessary to secure such rights. The Insured shall do nothing to prejudice such rights.

10. ACTION AGAINST INSURERS

No action shall lie against the Insurers unless, as a condition precedent thereto, the Insured shall have fully complied with all the terms of this Policy, nor until the amount of the Insured's obligation to pay shall have been finally determined, either by judgement against the insured after actual trial or by written agreement of the Insured, the Claimant and the Insurers.

11. SCHEDULE OF STATEMENTS

By acceptance of this Policy the Named Insured agrees that the statements in the Declarations are his agreements and representations, that this Policy is issued in reliance upon the truth of such representations and that this Policy embodies all agreements existing between himself and the Insurers relating to this insurance.

12. MISREPRESENTATION AND FRAUD

This Policy shall be void if the Named Insured has concealed or misrepresented any material fact or circumstance whether under the Declarations or not concerning this insurance or the subject thereof or in case of any fraud attempted fraud or false swearing by the Insured touching any matter relating to this insurance or the subject hereof, whether before or after a loss.

13. SERVICE OF SUIT

It is agreed that in the event of the failure of Insurers hereon to pay any amount claimed to be due hereunder, Insurers hereon, at the request of the Insured will submit to the jurisdiction of any Court of competent jurisdiction within the United States. Nothing in this Clause constitutes or should be understood to constitute a waiver of Insurers' rights to commence an action in any Court of competent jurisdiction in the United States, to remove an action to a United States District Court, or to seek a transfer of a case to another Court as permitted by the laws of the United States or of any State in the United States.

It is further agreed that service of process in such suit may be made upon the person(s) named in the Declarations, and that in any suit instituted against any one of them upon this contract, Insurers will abide by the final decision of such Court or of any Appellate Court in the event of an appeal.

The above-named are authorised and directed to accept service of process on behalf of' Insurers in any such suit and/or upon the request of the Insured to give a written undertaking to the Insured that they will enter a general appearance upon Insurers' behalf in the event such a suit shall be instituted.

Further, pursuant to any statute of any state, territory or district of the United States which makes provision therefor, insurers hereon hereby designate the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose ill the statute, or his successor or successors in office, as their true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the Insured or any beneficiary hereunder arising out of this contract of' insurance, and hereby designate the above-named as the person to whom the said officer is authorised to mail such process or a true copy thereof.

DEFINITIONS

The unqualified word 'Insured' includes the Named Insured and any partner, executive officer, director or employee if the Named Insured is a corporation but only while acting within the scope of his duties as such and any properly qualified and licensed pilot operating the Aircraft on behalf of and with the knowledge and consent of the Insured and who complies with the requirements of Item 7 of the Declarations.

'PASSENGER’. Shall mean any person other than the pilot or member of the crew of the Aircraft while in, on or boarding the Aircraft for the purposes of riding or flying therein or alighting from the Aircraft following flight or attempted flight therein.

'OCCURRENCE'. Means either an accident happening during the Policy period or a continuous or repeated exposure to conditions which unexpectedly or unintentionally causes bodily injury or injury to or destruction of property during the Policy period. All damages arising out of such exposure to substantially the same general conditions shall be considered as arising out of one Occurrence.

Furthermore all spraying or dropping of one type of chemical or seed for one Farmer/Owner/Grower during one calendar day shall be considered as one Occurrence.

'AERIAL APPLICATION'. Shall mean the spraying or dropping of chemical or seed.