Bush, Roed & Hitchings Inc. 2/23/2017

ment, the actual exposure basis will be Expenses incurred in the exercise of rights used to compute the earned premium. If of recovery will be apportioned between the earned premium is greater than the the interests, including the "Insured," in Advance Premium, you will promptly pay the ratio of their respective recoveries as us the difference. If the earned premium is finally settled. less than the Advance Premium, we will return the difference to you. But in any N. Terms Conformed to Statute event we will retain the Minimum Pre The terms of this Policy which are in con- mium as shown in Item 3. of the Declare-flirt with the statutes of the state where tions for each twelve months of our policy this Policy is issued are amended to con- period. form to such statutes. L. Separation of Insureds If we are prevented by law or statute from paying on behalf of an "Insured," then we Except with respect to our Limits of Insur- once and any rights or duties specifically will, where permitted by law or statute, assigned to the first Named Insured des indemnify the "Insured" for those sums in ignated in Item 1. of the Declarations, this excess of the "retained limit." insurance applies: O. Transfer of Your Rights And Duties 1. as if each Named Insured were the only Named Insured; and Your rights and duties under this policy may not be transferred without our written 2. separately to each "Insured" against consent. whom "claim" is made or "suit" If you die or are legally declared bankrupt, brought. your rights and duties will be transferred M. Transfer of Rights of Recovery Against to your legal representative but only while Others to Us acting within the scope of duties as your legal representative. However, notice of If any "Insured" has rights to recover all or cancellation sent to the first Named In- part of any payment we have made under sured designated in Item 1. of the Declare- this policy, those rights are transferred to tions and mailed to the address shown in us. The "Insured" must do nothing after this policy will be sufficient notice to effect loss to impair those rights and must help cancellation of this policy. us enforce them. P. When Loss Is Payable Any recoveries will be applied as follows: Coverage under this policy will not apply 1. any interests, including the "Insured," unless and until any "Insured" or an "In- that have paid an amount in excess of sured's" underlying insurer is obligated to our payment under this policy will be pay the "retained limit." reimbursed first; When the amount of loss has finally been 2. we then will be reimbursed up to the determined, we will promptly pay on be- amount we have paid; and half of the "Insured" the amount of loss falling within the terms of this policy. N 3. lastly, any interests, including the "In- sured," over which our insurance is You will promptly reimburse us for any excess, are entitled to claim the resi- amount within the Self-Insured Retention due. advanced by us at our discretion on behalf of any "Insured." CU 60 02 06 97 (Page 13 of 15)