Advantage Export Product Liability Insurance

(Occurrence Form)

Introduction

This is your 'Exporters Advantage' Occurrence Product Liability Insurance Policy. It offers a wide range of protection designed to meet today's complex insurance needs. Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered.

How to Read This Policy

This policy is keyed to the coverages shown. You have only those coverages for which a limit or other specification is shown in the Declarations. 

This policy may provide several different kinds of coverage. The forms included explain the coverages shown in the Declarations, and include certain extensions of coverage that may apply.

Whenever a loss occurs or a claim is to be presented, there are certain things you must do to help us settle the claim. These are described in the SECTION VI - GENERAL POLICY CONDITIONS section of yourpolicy.

You, Your, We, Us, and Our

Throughout the policy the term "you' and "your" mean the person, people, or organization shown as the Named Insured in the Declarations. "We", "us", and "Our", mean the insurance company issuing the policy.

Besides you, there may be other people "insured" under certain parts of the policy

TABLE OF CONTENTS

SECTION I -COVERAGE ..............................................................................1

1. Insuring Agreement ..................................................................................................1

2. Exclusions ...............................................................................................1

SUPPLEMENTARY PAYMENTS .................................................................3

SECTION II - WHO IS AN INSURED ......................................................... 3

SECTION III - LIMITS OF INSURANCE .....................................................3

SECTION IV - DEDUCTIBLE .......................................................................4

SECTION V - DEFINITIONS ..................................................................... 4

SECTION VI - GENERAL POLICY CONDITIONS ......................................5

1. Bankruptcy ............................................................................................. 5

2. Duties in The Event Of Occurrence, Offence, Claim Or Suit ............. 5

3. Legal Action Against Us .......................................................................6

4. Other Insurance ..................................................................................... 6

5. Premium Audit .......................................................................................7

6. Representations .................................................................................... 7

7. Separation of Insureds ......................................................................... 7

8. Transfer of Rights of Recovery Against Others To Us ..................... 7

9. Cancellation ........................................................................................... 7

10. Changes .....................................................................................................8

11. Examination of your books and records .......................................... 8

12. Inspections and Surveys .................................................................... 8

13. Premiums ............................................................................................. 8

14. Applicable Law .................................................................................... 8

SECTION I - COVERAGE

1. Insuring Agreement

(a) We will pay those sums that the insured becomes legally obligated to pay as damages because of "bodily injury" or "property damage" included within the "Products Hazard" to which this insurance applies. We will have the right and duty to defend the insured against any "suit" seeking those damages. However, we will have no duty to defend the insured against any "suit" seeking damages for "bodily injury" or "property damage" to which this insurance does not apply. We may, at our discretion, investigate any "occurrence" and settle any claim or "suit" that may result. But:

(1) The amount we will pay for damages is limited as described in LIMITS OF INSURANCE (SECTION III); and

(2) Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judgments or settlements under this Policy; and

(3) Our obligation to pay damages on your behalf applies only to the amount of damages in excess of any deductible amounts stated in the Declarations and described in DEDUCTIBLE (SectionIV).

No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under SUPPLEMENTARY  PAYMENTS. 

(b) This insurance applies to "bodily injury" and "property damage" only if:

(1) The "bodily injury" or "property damage" is caused by an "occurrence" that takes place in the "coverageterritory"; and

(2) The "bodily injury" or "property damage" occurs during the policyperiod.

(3) A claim or suit is brought in a designated "jurisdiction".

(c) Damages because of "bodily injury" include damages claimed by any person or organisation for care, loss of services or death resulting at any time from the "bodily injury".

2. Exclusions

This insurance does not apply to:

(a) Aircraft Products

Any loss, demand, claim or “suit” arising from “your product” which is manufactured, designed or intended for use in any aircraft or spacecraft and which control, monitor or in any way affect the flying capabilities of any aircraft or spacecraft.

(b) Asbestos

Damages claimed for any loss demand claim or suit resulting from asbestosis and/or related diseases directly or indirectly caused by or contributed by the manufacturing, processing, removal, transport, distribution and/or storage of asbestos, asbestos products or use of any product containing asbestos. We shall have no duty of any kind with respect to any such loss, demand claim or suit.

(c) Contractual Liability "Bodily injury" or "property damage" for which the insured is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages that the Insured would have in the absence of the contract or agreement.

(d) Damage to Impaired Property or Property Not Physically Injured "Property damage" to "impaired property" or property that has not been physically injured, arising out of:

(1) A defect, deficiency, inadequacy or dangerous condition in "your

product"; or

(2) A delay or failure by you or anyone acting on your behalf to perform a contract or agreement in accordance with its terms.

This exclusion does not apply to the loss of use of other property arising out of sudden and accidental physical injury to "your product" after it has been put to its intended use.

 (e) Damage to Property

"Property damage" to:

(1) Property you own, rent, or occupy;

(2) Property loaned to you;

(3) Personal property in your care, custody or control;

(f) Damage to Your Product

"Property damage" to "your product" arising out of it or any part of it.

(g) Employer's Liability

"Bodily injury" to:

(1) Any "employee" of the insured arising out of and in the course of:

(a) Employment by the insured; or

(b) Performing duties related to the conduct of the insured's business; or

(2) The spouse, child, parent, brother or sister of that "employee" as a consequence of paragraph (1) above.

This exclusion applies:

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

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

(h) Expected or Intended Injury

"Bodily injury" or "property damage" expected or intended from the standpoint of the insured.

(i) Nuclear Energy

Damages claimed for any loss, demand, claim or "suit" arising out of or in any way caused by, contributed to or arising from:

(a) nuclear reactions & nuclear power stations or plant;

(b) any other premises or facilities whatsoever related to or concerned with

(i) the production of nuclear energy or

(ii) the production or storage or handling of nuclear fuel or nuclear waste.

(j) Pollution

(a) Damages claimed for any loss, demand claim or "suit" arising out of the discharge, dispersal, release or escape of smoke, vapours, soot, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste materials or other irritants, contaminants or pollutants into or upon land, the atmosphere or any watercourse or body of water.

(b) Any cost or expense arising out of any government demand or request that you test for, assess, monitor clean-up remove, contain, treat, detoxify or neutralise any such irritants, contaminants or pollutants.

(c) We shall have no duty to defend any claim or suit seeking to impose such costs, expenses, liability for such damages or any other relief.

(k) Professional Liability

Any claim, "suit", loss or demand arising from the rendering or failure to provide professional advice

(l) Recall of Products or Impaired Property

Damages claimed for any loss, cost or expense incurred by you or others for the loss of use, withdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal of:

(1) "Your product";

(2) "Impaired property";

if such product or property is withdrawn or recalled from the market or from use by any person or organisation because of a known or suspected defect, deficiency, inadequacy or dangerous condition in it.

(m) War

"Bodily injury" or "property damage" due to war,whether or not declared, or any act or condition incidental to war. War includes civil war, act of terrorism, insurrection, rebellion or revolution.

 (n) Workers Compensation and Similar Laws

Any obligation of the insured under a workers compensation, disability benefits or unemployment compensation law or any similar law.

SUPPLEMENTARY PAYMENTS

We will pay, with respect to any claim we investigate or settle, or any "suit" against an insured we defend:

1. All expenses we incur.

2. The cost of bonds to release attachments, but only for bond amounts within the applicable limit of insurance. We do not have to furnish these bonds.

3. All reasonable expenses incurred by the insured at our request to assist us in the investigation or defence of the claim or "suit" including actual loss of earnings up to $100 a day because of time off from work.

4. All costs taxed against the insured in the "suit".

5. Prejudgment interest awarded against the insured on that part of the judgment we pay. If we make an offer to pay the applicable limit of

insurance, we will not pay any prejudgment interest based on that period of time after the offer.

6. All interest on the full amount of any judgment that accrues after entry of the judgment and before we have paid, offered to pay, or deposited in court the part of the judgment that is within the applicable limit of insurance. These payments will be inclusive within and shall reduce the limits of insurance.

SECTION II - WHO IS AN INSURED

1. If you are designated in the Declarations as:

(a) An individual, you and your spouse are insureds, but only with respect to the conduct of a business of which you are the sole owner.

(b) A partnership or joint venture, you are an insured. Your members, your partners, and their spouses are also insureds, but only with respect to the conduct of your business.

(c) A limited liability company, you are an insured. Your members are also insureds, but only with respect to the conduct of your business. Your managers are insureds, but only with respect to their duties as your managers.

(d) An organisation other than a partnership, joint venture or limited liability company, you are an insured. Your "executive officers" and directors are insureds, but only with respect to their duties as your

officers or directors. Your stockholders are also insureds, but only with respect to their liability as stockholders.

2. Each of the following is also an insured:

(a) Your "employees", other than either your"executive officers" (if you are an organization other than a partnership, joint venture or limited liability company) or your managers (if you are a limited liability company), but only for acts within the scope of their employment by you or while performing duties related to the conduct of your business.

(b) Your legal representative if you die, but only with respect to duties as such. That representative will have all your rights and duties under the Policy.

No person or organisation is an insured with respect to the conduct of any current or past partnership, joint venture or limited liability company that is not shown as a Named Insured in the Declarations.

SECTION III - LIMITS OF INSURANCE

1. The Limits of Insurance shown in the Declarations and the rules below fix the most we will pay regardless of the number of:

(a) Insureds;

(b) Claims made or "suits" brought; or

(c) Persons or organizations making claims or bringing "suits".

2. The Products Aggregate Limit is the most we will pay for damages because of "Bodily injury" and "property damage" arising from the "Products Hazard".

3. Subject to 2. above, the Each Occurrence Limit is the most we will pay for the sum of damages because of all "Bodily injury" and "property damage" arising out of any one "occurrence" within the "Products Hazard".

The Limits of Insurance of this Policy apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown in the Declarations, unless the policy is extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the last preceding period for purposes of determining the Limits of Insurance.

SECTION IV - DEDUCTIBLE

1. Our obligation to pay damages on your behalf applies only to the amount of damages in excess of any deductible amount stated in the Declarations.

2. The deductible amount stated in the Declarations applies on a "per occurrence" basis or “per claim” basis to all damages because of:

(a) "Bodily injury";

(b) "Property damage";

(c) "Bodily injury" and "property damage" combined;

as the result of any one "occurrence" or any one “claim”, regardless of the number of persons or organizations who sustain damages because of that "occurrence" or “claim”.

3. The terms of this insurance, including those with respect to:

(a) Our right and duty to defend any "suits"seeking those damages; and

(b) Your duties in the event of an "occurrence", claim, or "suit"

apply respective of the application of the deductible amount.

4. We may pay any part or all of the deductible amount to effect settlement of any claim or "suit" and, upon notification of the action taken, you shall promptly reimburse us for any deductible amount which has been paid by us.

SECTION V - DEFINITIONS

1. "Bodily injury" means bodily injury, sickness or disease sustained by a person, including death resulting from any of these at any time.

2. "Coverage territory" means the country or countries designated in the Declarations;

3. "Employee" includes a "leased worker" or "temporary worker".

4. "Executive officer" means a person holding any of the officer positions created by your charter, constitution, by-laws or any other similar governing document.

5. "Impaired property" means tangible property, other than "your product" that cannot be used or is less useful because:

(a) It incorporates "your product" that is known or thought to be defective, deficient, inadequate or dangerous; or

(b) You have failed to fulfill the terms of a contract or agreement; 

if such property can be restored to use by:

(a) The repair, replacement, adjustment or removal of "your product"

(b) Your fulfilling the terms of the contract or agreement.

6. “Jurisdiction” means the country or countries described in the Declarations where we will have a duty to defend the insured against any claim or “suit” seeking damages. However, we will have no duty to defend the insured against any claim or “suit” seeking damages in any country not designated in the Declarations.

7. "Leased worker" means a person leased to you by a labour leasing firm under an agreement between you and the labour leasing firm, to perform duties related to the conduct of your business. "Leased worker" does not include a "temporary worker".

8. "Occurrence" means an accident, including continuous or repeated exposure to substantially the same general harmful condition.

9. "Products hazard":

(a) Includes all "Bodily injury" and "property damage" occurring away from premises you own or rent and arising out of "your product" except:

 (1) Products that are still in your physical possession; or

(2) The existence of tools, uninstalled equipment or abandoned or unused materials.

10. "Property damage" means:

(a) Physical injury to tangible property, including all resulting loss of use of that property. All such loss of use shall be deemed to occur at the time of the physical injury that caused it; or

(b) Loss of use of tangible property that is not physically injured or destroyed, provided such loss of use is caused by physical damage of other tangible property. All such loss of use shall be deemed to occur at the time of the "occurrence" that caused it.

11. "Suit" means a civil proceeding in which damages because of the "Bodily injury", "property damage", to which this insurance applies are alleged. "Suit" includes:

(a) An arbitration proceeding in which such damages are claimed and to which the insured must submit or does submit with our consent; or

(b) Any other alternative dispute resolution proceeding in which such damages are claimed and to which the insured submits with our consent.

12. "Temporary worker" means a person who is furnished to you to substitute for a permanent "employee" on leave or to meet seasonal or short-term workload conditions.

13. "Your product" means:

(a) Any goods or products, other than real property, manufactured, sold, handled, distributed or disposed of by:

(1) You;

(2) Others trading under your name; or

(3) A person or organization whose business or assets you have acquired;

and

(b) Containers (other than vehicles), materials, parts or equipment furnished in connection with such goods or products. 

"Your Product" includes:

(a) Warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of "yourproduct", and

(b) The providing of or failure to provide warnings or instructions. "Your product" does not include vending machines or other property rented to or located for the use of others but not sold.

SECTION VI - GENERAL POLICY

CONDITIONS

1. Bankruptcy

Bankruptcy or insolvency of the insured or of the insured's estate will not relieve us of our obligations under this Policy.

2. Duties in The Event Of Occurrence, Offence, Claim Or Suit

(a) You must see to it that we are notified as

soon as practicable of an "occurrence" or an offence which may result in a claim. To the extent possible, notice should include:

(1) How, when and where the "occurrence" or offence took place;

(2) The names and addresses of any injured persons and witnesses; and

(3) The nature and location of any injury or damage arising out of the "occurrence" or offence.

(b) If a claim is made or "suit" is brought against any insured, you must:

(1) Immediately record the specifics of the claim or "suit" and the date received; and

(2) Notify us as soon as practicable. You must see to it that we receive written notice of the claim or "suit" as soon as practicable.

(c) You and any other involved insured must:

(1) Immediately send us copies of any demands, notices, summonses or legal papers received in connection with the claim or "suit";

 (2) Authorise us to obtain records and other information;

(3) Cooperate with us in the investigation or settlement of the claim or defence against the "suit"; and

(4) Assist us, upon our request, in the enforcement of any right against any person or organisation which may be liable to the insured because of injury or damage to which this insurance may also apply.

(d) No insured will, except at that insured's own cost, voluntarily make a payment, assume any obligation, or incur any expenses, other than for first aid, without our consent.

(e) Where the insured fails to comply with the obligations above, which makes it difficult to determine the nature, cause, degree of damage of an Occurrence, we shall not be liable for indemnifying the undeterminable part. This exclusion does not apply to the occurrence, which we have known or ought to know by other means.

3. Legal Action Against Us

No person or organisation has a right under this Coverage Part

(a) To join us as a party or otherwise bring us into a "suit" asking for damages from an insured' or

(b) To sue us on this Policy unless all of its terms have been fully complied with. 

A person or organisation may sue us to recover on an agreed settlement or on a final judgment against an insured obtained after an actual trial; but we will not be liable for damages that are not payable under the terms of this Policy of that are in excess of the applicable limit of insurance. An agreed settlement means a settlement and release of liability signed by us, the insured and the claimant or the claimant's legal representative.

4. Other Insurance

If other valid and collectible insurance is available to the insured for a loss we cover under this Policy, our obligations are limited as

follows:

(a) Primary Insurance

This insurance is primary. Our obligations are not affected unless any other insurance is also primary. Then, we will share with all other insurance by the method described in (c). below:

(b) Excess Insurance

This insurance is excess over any of the other insurance whether primary, excess, contingent or on any other basis that is effective prior to the beginning of the policy period shown in the Declarations of this insurance and applies to “bodily injury” or “property damage” on other than a claims-made basis, if:

(1) No Retroactive Date is shown in the Declarations of this insurance; or

(2) The other insurance has a policy period which continues after the Retroactive Date shown in the Declarations of the policy.

When this insurance is excess, we will have no duty to defend the insured against any “suit” if any other insurer has a duty to defend the insured against that “suit”. If no other insurer defends, we will undertake to do so, but we will be entitled to the insured’s rights against all those other insurers. 

When this insurance is excess over other insurance, we will pay only our share of the amount of the loss, if any, that exceeds the sum of:

(1) The total amount that all such other insurance would pay for the loss in the absence of this insurance: and

(2) The total of all deductible and selfinsured amounts under all that other insurance.

We will share the remaining loss, if any, with any other insurance that is not described in this Excess Insurance provision and was not bought specifically to apply in excess of the Limits of Insurance shown in the Declarations of the policy.

(c) Method of Sharing

If all other insurance permits contribution by equal shares, we will follow this method also. Under this approach each insurer contributes equal amounts until it has paid its applicable limit of insurance or none of the loss remains, whichever comes first.

If any of the other insurance does not permit contribution by equal shares, we will contribute by limits. Under this method, each insurer's share is based on the ratio of its applicable limit of insurance to the total applicable limits of insurance of all insurers.

5. Premium Audit

(a) We will compute all premiums for this Policy in accordance with our rules and rates.

(b) Premium shown in the Declaration is a deposit premium only. At the close of each audit period we will compute the earned premium for that period. Audit premiums are due and payable on notice to the Applicant. If the sum of the advance and audit premiums paid for the policy period is greater than the earned premium, we will return the excess to the Applicant.

(c) The Applicant must keep records of the information we need for premium computation, and send us copies at such times as we may request.

6. Representations

By accepting this policy, you agree:

(a) The statements in the Declarations are accurate and complete;

(b) Those statements are based upon representations and/or applications you made to us; and

(c) We have issued this policy in reliance upon your representations and/or applications. If you have concealed or misrepresented any material fact or circumstance concerning this insurance this entire policy is void.

7. Separation of Insureds

Except with respect to the Limits of Insurance, and any rights or duties specifically assigned in this Policy to the first Named Insured, this insurance applies:

(a) As if each Named Insured were the only Named Insured; and

(b) Separately to each insured against whom claim is made or "suit" brought.

8. Transfer of Rights of Recovery Against Others To Us

If the insured has rights to recover all or part of any payment we have made under this Policy, those rights are transferred to us. The insured must do nothing after loss to impair them. At our request, the insured will bring "suit" or transfer those rights to us and help us enforce them.

9. Cancellation

(a) The Applicant shown in the Declarations may cancel this policy mailing or delivering to us advance written notice of cancellation.

(b) We may cancel this policy by mailing or delivering the Applicant written notice of cancellation at least;

(1) 10 Days before the effective date of cancellation if we cancel for nonpayment of premium; or

(2) 30 Days before the effective date of cancellation if we cancel for any other reason.

(c) We will mail or deliver our Notice to the Applicant's last mailing address known to us.

(d) Notice of cancellation will state the effective date of cancellation. The policy period will end on that date.

(e) Before the liability initiates, if you cancel the policy, we will refund 90% of the total premium (10% commission surcharge); if we cancel the policy, we will refund 100% of the total premium.

After the liability initiates, if the policy is cancelled, unless specified otherwise, we will refund undue premium on pro-rata basis, not higher than 90% of the total premium.

If claims occur during the policy period, the policy will be cancelled after you receive the composition, we will calculate the refundable premium according to the method below: Refundable premium = (Policy Aggregate Limit of Liability – Settlement Amount)/Policy Aggregate Limit of Liability*Annual Premium*Lapsed Dates The cancellation will be effective even if we have not made or offered such a refund.

(f) If notice is mailed, proof of posting will be sufficient proof of notice.

10. Changes

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

11. Examination of your books and records

We may examine and audit your books and records as they relate to this policy at any time during the policy period and up to three years afterwards.

12. Inspections and Surveys

We have the right but are not obligated to:

(a) Make inspections and surveys at any time;

(b) Give you reports on the conditions we find; and

(c) Recommend changes.

Any inspections, surveys, reports or recommendations relate only to insurability and the premiums to be charged. We do not make safety inspections. We do not undertake to perform the duty of any person or organisation to provide for the health or safety of workers or the public. And we do not warrant that conditions:

(a) Are safe or healthful; or

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

This condition applies not only to us, but to any rating, advisory, rate service or similar organisation which makes insurance inspections, surveys reports or recommendations.

13. Premiums

The Applicant in the Declarations:

(a) Is responsible for the payment of all premiums; and

(b) Will be the payee for any return premiums we pay.

14. Applicable Law

Should any dispute arise between you and us over this policy, such dispute shall be determined in accordance with the Law of China (excluding the law of Hong Kong, Macau and Taiwan).