Insurance Information Summary

Section 1: Broker & Insurer Information

Section 2: General Information & Conditions

Section 3: Scope of Coverage

Section 4: Notice of Terrorism Insurance Coverage

This Insurance Information Summary provides a summary of the insurance offered through Cabrella Shipping Insurance Intelligence to its Users, including a summary of coverage under the Insurance Policy as well as a description of the broker and insurer on the Insurance Policy. All capitalized terms used but not defined in this document s) shall have the meaning assigned to such term in the Terms and Conditions.

SECTION 1 – BROKER AND INSURER INFORMATION

BROKER INFORMATION. You acknowledge that the insurance program and coverage described below is brokered and administered by Meslee Insurance Services, Inc. (CA Department of Insurance License Number OB86528) with principal office located at 7164 Melrose Avenue, Los Angeles, CA 90046.

You also acknowledge that the insurance coverage is being provided by AXA XL and that AXA XL is a "non-admitted" or "surplus lines" insurer. As such, You are notified and in agreement with the following:

  1. THE INSURANCE POLICY THAT YOU ARE APPLYING TO PURCHASE IS BEING ISSUED BY AN INSURER THAT IS NOT LICENSED BY THE STATE OF CALIFORNIA. THESE COMPANIES ARE CALLED “NONADMITTED” OR “SURPLUS LINE” INSURERS.
  2. THE INSURER IS NOT SUBJECT TO THE FINANCIAL SOLVENCY REGULATION AND ENFORCEMENT THAT APPLY TO CALIFORNIA LICENSED INSURERS.
  3. THE INSURER DOES NOT PARTICIPATE IN ANY OF THE INSURANCE GUARANTEE FUNDS CREATED BY CALIFORNIA LAW. THEREFORE, THESE FUNDS WILL NOT PAY FOR YOUR CLAIMS OR PROTECT YOUR ASSETS IF THE INSURER BECOMES INSOLVENT AND IS UNABLE TO MAKE PAYMENTS AS PROMISED.
  4. THE INSURER SHOULD BE LICENSED EITHER AS A FOREIGN INSURER IN ANOTHER STATE IN THE UNITED STATES OR AS A NON-UNITED STATES (ALIEN) INSURER. YOU SHOULD ASK QUESTIONS TO YOUR INSURANCE AGENT, BROKER, OR “SURPLUS LINE” BROKER OR CONTACT THE CALIFORNIA DEPARTMENT OF INSURANCE AT THE FOLLOWING TOLL-FREE TELEPHONE NUMBER: 1-800-927-4357 OR INTERNET WEB SITE INSURANCE.CA.GOV AND ASK WHETHER OR NOT THE INSURER IS LICENSED AS A FOREIGN OR NON-UNITED STATES (ALIEN) INSURER AND FOR ADDITIONAL INFORMATION ABOUT THE INSURER. YOU MAY ALSO CONTACT THE NAIC’S INTERNET WEB SITE AT NAIC.ORG.
  5. FOREIGN INSURERS SHOULD BE LICENSED BY A STATE IN THE UNITED STATES AND YOU MAY CONTACT THAT STATE’S DEPARTMENT OF INSURANCE TO OBTAIN MORE INFORMATION ABOUT THAT INSURER.
  6. FOR NON-UNITED STATES (ALIEN) INSURERS, THE INSURER SHOULD BE LICENSED BY A COUNTRY OUTSIDE OF THE UNITED STATES AND SHOULD BE ON THE NAIC’S INTERNATIONAL INSURERS DEPARTMENT (IID) LISTING OF APPROVED NONADMITTED NON-UNITED STATES INSURERS. ASK YOUR AGENT, BROKER, OR “SURPLUS LINE” BROKER TO OBTAIN MORE INFORMATION ABOUT THAT INSURER.
  7. CALIFORNIA MAINTAINS A LIST OF APPROVED SURPLUS LINE INSURERS. ASK YOUR AGENT OR BROKER IF THE INSURER IS ON THAT LIST, OR VIEW THAT LIST AT THE INTERNET WEB SITE OF THE CALIFORNIA DEPARTMENT OF INSURANCE: INSURANCE.CA.GOV.
  8. IF YOU, AS THE APPLICANT, REQUIRED THAT THE INSURANCE POLICY YOU HAVE PURCHASED BE BOUND IMMEDIATELY, EITHER BECAUSE EXISTING COVERAGE WAS GOING TO LAPSE WITHIN TWO BUSINESS DAYS OR BECAUSE YOU WERE REQUIRED TO HAVE COVERAGE WITHIN TWO BUSINESS DAYS, AND YOU DID NOT RECEIVE A DISCLOSURE FORM AND A REQUEST FOR YOUR SIGNATURE UNTIL AFTER COVERAGE BECAME EFFECTIVE, YOU HAVE THE RIGHT TO CANCEL THIS POLICY WITHIN FIVE DAYS OF RECEIVING THE DISCLOSURE. IF YOU CANCEL COVERAGE, THE PREMIUM WILL BE PRORATED AND ANY BROKER’S FEE CHARGED FOR THIS INSURANCE WILL BE RETURNED TO YOU.

SECTION 2 –GENERAL INFORMATION & CONDITIONS

INPUT OF PACKAGE LEVEL DETAIL. When generating shipping labels through the TMS via any Carrier, you must declare the correct package-level details, including, but not limited to, address, weight, dimensions, residential or out of area/rural location, Customs duty and/or tax liability, etc., of each shipment accurately. You agree that in no event will CABRELLA be liable to You or any User for the loss or non-delivery of a parcel resulting from any error, discrepancy, or misstatement in shipment details inputted by You or any User. Failure to provide accurate shipping information, including, but not limited to, the correct tracking or bill of lading number, cargo or package contents, Carrier, service type, packaging type, shipment origin, shipment destination, and date, all corresponding to the shipment declared, may void coverage.

ADHERENT LABELS. For insurance coverage to be in force, you must use shipping labels that adhere directly to the packaging. Shipments with labels placed in adhesive pouches that can be removed or replaced may void coverage, unless required by customs person or firm or official charged with such transits OR unless specifically agreed to by Cabrella in writing.

SIGNATURE REQUIREMENTS. Signature requirements are set by CABRELLA and will depend on the value of the shipment and/or an assessment of current risk factors; however, signature confirmation is required on all packages equal to or greater than $1,000.00 USD regardless of account or situation. When You select “Delivery Confirmation” or no signature confirmation for delivery by any Carrier, the Carrier’s confirmation in accordance with Your selection constitutes proof of delivery and Coverage for such shipment will terminate upon delivery. In instances where a delivery signature is required by the TMS but the recipient waives the signature, Coverage for the shipment will be void. If, however, You prove that You instructed the Carrier not to allow waiver of signature, and the Carrier nevertheless waived the signature against Your instructions, coverage shall remain in force.

RECOVERY & INSURABLE INTEREST. In order to recover under the Insurance Policy, You must have an insurable interest in the subject-matter insured at the time of the loss. All packaging material and damaged goods must be kept in the original form as received. Packaging and damaged goods should not be disposed of or released to the Carrier before a claim is completed. Failure to comply may result in the denial of the claim due to insufficient evidence. In all applicable cases, the Insurer will rely on the determination of responsibility made by the original Carrier to assist in substantiating the loss. Any damage to a parcel that was not repaired must be made available to us or the Insurer , if requested.

PROPERTY INSURED. The Property Insured is principally but not limited to cash, jewelry, valuable papers, and all other interest in relation to the Insured’s business.

VALUATION. You understand and agree that in the event of a recoverable loss, settlement will be made by the Insurer as per the declared value per the memorandum documentation, invoice and/or other proof of value as may be applicable.

PAIRS AND SETS CLAUSE. In the event of loss or damage to any article or articles which are part of a pair or set, the measure of loss of or damage to such article or articles shall be the proportional value that it bears to the total value of the pair or set. In no event shall such loss or damage be construed to mean total loss of the pair or set.

REPLACEMENT PARTS. In the event of loss of or damage to any part of an insured machine or other manufactured item consisting of more than one part caused by a peril covered by this Policy, the sum recoverable shall not exceed the cost of replacement or repair of such part(s) plus labor for (re)fitting and carriage costs. Duty incurred in the provision of replacement or repaired part(s) shall also be recoverable provided that the full duty payable on the insured machine or manufactured item is included in the amount insured. The total liability of Insurers shall in no event exceed the amount insured of the machine or manufactured item.

100% CO-INSURANCE CLAUSE. If the Assured’s customers fail to insure for the full replacement value of goods at destination, the Assured and/or their Customers will only be entitled to recover from the Underwriters the proportion of the loss as the declared value bears to the total value of the property shipped.

SECURITY BOXES, BAGS & SEAL REQUIREMENT. For certain Users, commodities and conditions, tamper evident security bags and/or security boxes and seals are required for coverage to apply. All Users will be made aware of this requirement should it apply to them and will have instructions for use within their specific underwriting guidelines. For security boxes, each security box comes with two seals, each of which have random but unique identifying numbers on them. Users are responsible for keeping track of seal numbers used with corresponding shipments and may be required to provide this information in event of a claim. For new accounts, CABRELLA will send the first set of materials (User’s choice) free of charge. Thereafter, clients will be charged per order plus shipping and handling as may be applicable. Such charges will be added to their invoice at the end of each month. As these charges are not insurance premiums, any insurance taxes (including Surplus Lines Association Taxes & Fees) will not apply.

TERRITORIAL EXCLUSION FOR SANCTIONED COUNTRIES. Shipments are subject to the exclusion to the following Sanctioned Countries/territories: Iran, Syria, Sudan, North Korea, Russia, Ukraine, Crimea, Cuba, Belarus, South Sudan, Democratic Republic of Congo, Somalia, Zimbabwe. List of countries is fluid & can be updated from time to time and will be reflected in the insurance information summary agreement.

PREMIUMS NOT PAID. If the premium payment is not received, all coverage and pending claim payments under this Insurance Policy will be suspended until reinstated by the Insurer.

INSURANCE DISCONTINUANCE. CABRELLA, or the Insurer, as applicable, reserves the right, subject to the terms and conditions of the Insurance Policy, to disallow any User from purchasing insurance through CABRELLA. Subject to the terms and conditions of the Insurance Policy, CABRELLA may discontinue Your insurance, if CABRELLA provides You a thirty (30)-day written notice. CABRELLA may also discontinue Your insurance due to any change in material facts as determined following the issuance of any certificate, provided CABRELLA gives You a ten (10)-day written notice. Notwithstanding the thirty (30)-day discontinuation notice, You may be required to, subject to ten (10)-day notice in writing and subject to the terms and conditions of the Insurance Policy, modify security measures or reduce package limits if the loss experience warrants such actions.

VERIFICATION OF MAILING: For a package to be covered, the shipping Carrier must verify acceptance of Your package for mailing. This is found on the respective tracking websites of the shipping Carriers. If a shipping label is printed but not scanned by the Carrier as accepted it is deemed as never been mailed and there is no coverage.

RATES AND COVERAGE LIMITS. Subject to the terms and conditions of the Insurance Policy, this insurance covers up to a certain limit per package as shown on the Coverage Guideline section of the User account at log in. For packages shipped via envelopes, padded packs or any other non-rigid materials, Coverage is limited to $1,000.00 per package. Premium for shipments will be charged at rates listed on the Coverage Guideline section of the User account at log in.

SURPLUS LINES ASSOCIATION TAXES AND DOCUMENT STAMP FEES. Because this program is underwritten through a non-admitted carrier as described above, Surplus Lines Association (SLA) Taxes and Document Stamp Fees will apply to all insurance transactions. SLA Taxes and Fees may be changed by the Department of Insurance (as determined by various sub committees that make such decisions) and as such, are subject to change.

SECTION 3 –SCOPE OF COVERAGE

COVERAGE. All parcels covered by this program will be shipped in strict accordance with all regulations of the Carrier. Coverage is only provided for shipments through commercial parcel & freight companies, including but not limited to Federal Express, UPS, DHL & United States Postal Service (USPS) unless otherwise agreed by CABRELLA. You assume liability and agree to indemnify and hold CABRELLA harmless with respect to any good You ship that is prohibited by the Carrier.

International coverage is also included for all carriers; however, whenever coverage provided by this policy would be in violation of any U.S. economic or trade sanctions, such coverage shall be null and void. Please refer to territorial exclusion section for more information.

SCOPE OF COVERAGE. The scope of coverage is from the time the Property Insured leaves the premises of the sender, until delivered to the premises of the consignee and signed for by the recipient or as declared.

You understand and agree that in cases where the interest insured is addressed to Post Box addresses, this Agreement extends to cover such interest whilst in transit from the Post Box address until finally delivered to the premises of the consignee and signed for by the recipient. In the case of drop ship transactions, the Parties agree that coverage attaches from the time the Property Insured leaves the shipping location until safely delivered to its intended destination.

Notwithstanding anything contained herein to the contrary, the Parties agree that this Agreement includes transit from the sender’s premises and to the consignee’s premises on route to or from the post office or airways office and transit to or from and whilst on the premises of any Government department or official or semi-official body or organization or any other organization, firm or person, through which the insured interest has to pass by virtue of any regulation or trade custom; such transit may be in charge of the sender or the consignee or the Insured or the servants, agents or brokers of the latter three, or any person or firm or official charged with such transits.

EXCLUSIONS. The following important clauses, exclusions, terms and conditions are intended as a summary. For the full policy wording, please contact CABRELLA.

This policy covers against all risks of physical loss and/or damage of whatsoever nature, subject to, including but not limited to, the following exclusions and conditions:

  1. Shipment of contraband or unlawful goods, including goods forbidden from carriage by the Carrier’s terms.
  2. Dangerous goods, hazardous materials, and Restricted Cargo, i.e., parcels to which special regulations and/or laws issued by national, state, and/or local governments apply, including, but not limited to, alcohol, tobacco, ammunition, and prescription medications. If you use CABRELLA to ship any dangerous good, hazardous material or Restricted Cargo, you are responsible to ensure compliance with every applicable national, state and/or local government regulation and/or law; you assume all liability for any type of non-compliance; and you agree to indemnify and hold CABRELLA harmless from any type of non-compliance or liability arising from the shipment.
  3. Loss of or damage to the Property Insured by theft, dishonesty or deception committed by the shipper or any agent, servant, traveler or messenger on behalf of the shipper.
  4. Loss of or damage to Property Insured occurring through the operation of a peril against which, at the date of such loss or damage, the Insured has effected separate insurances irrespective of whether or not such other insurance is liable to or does not meet such loss.
  5. Loss of, damage to, or breach of data or other non-tangible content.
  6. Electrical, electronic and/or mechanical derangement of any kind, including loss, destruction or damage directly occasioned by pressure waves caused by aircraft and other serial devices travelling at sonic or supersonic speeds.
  7. Loss of or damage to Property Insured, directly or indirectly, caused by or in consequence of war, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, local, regional, national, or global pandemic, insurrection, military or usurped power, martial law or confiscation or nationalization or requisition or destruction of or damage to property by or under the order of any government or public or local authority.
  8. Non-performance or delay caused by labor disturbances, riots, civil authority, acts of God or means beyond the control of CABRELLA or the Carrier.
  9. Shipper and Recipient Disputes: Coverage is excluded for packages that are marked as delivered by Carrier and simultaneously being disputed by recipient as not received. This exclusion applies for packages valued at $999.99 or less when signature confirmation is not elected by the shipper.
  10. Mysterious Disappearance, excluding property that is missing, but there is no physical evidence to show what happened to it, for example, a shortage disclosed on taking inventory.
  11. Damage or losses of Property Insured within sealed packages absent objective physical evidence of tampering with the shipping parcel or of penetration or invasion of the shipping container or of damage in transit.
  12. Damage to Property Insured as a result of inadequate or unprofessional packaging.
  13. Loss of or damage to Property Insured caused by or resulting from confiscation, nationalization, requisition or destruction of or damage to property by or under the order of any government or public or local authority.
  14. Any loss, damage, shortage, or non-arrival of any parcel and its contents addressed or labeled incorrectly.
  15. Loss, damage, shortage, or non-arrival of any parcel and its contents if it bears a descriptive label or packaging, such as the manufacturer packaging, that describes, or alludes to, the nature of the contents. International shipments that contain customs declarations are NOT excluded from coverage.
    1. For precious commodities, labels shall not make any reference to the precious commodities such as gold, diamonds, jewelry, gems, silver cash or any other word that references contents and value. For example, if shipping from (or to) Henry’s Jewelry Store, shipper or recipient name should read as “Henry’s JS”, “HJS, or some other abbreviated version excluding the word “jewelry.” This condition shall not apply if a declaration of value or contents is required by customs or if statutory regulations require otherwise.
  16. Cash on delivery (C.O.D.) shipments are covered; however, Coverage does not include the returned cash/consideration following delivery of parcel nor will Coverage include any loss of or damage to Property Insured when sent C.O.D. with the privilege of inspection by the consignee before acceptance.

CARGO SHIPMENTS. For cargo shipments (non-small parcel), including conveyances by Less than a Truck Load, Full Truck Load, ocean and air, the following additional conditions and clauses are applicable, and shall take precedence over any other applicable conditions or clauses contained in this document:

  1. Commodities. Approved General Merchandise and Target, Theft Attractive, Fragile and goods susceptible to breakage (varying rates, limits, and deductibles applicable)
  2. Target, Theft Attractive and Fragile Goods. Target, Theft Attractive and Fragile Goods can be covered but must be referred for approval prior to shipment. Examples Include: Bottled Beverages, Branded Goods, Tablets, Radios, Televisions, Audio Visual Equipment, Musical Instruments, Cameras, Electronic Toys, Video Games and associated items, Mobile telephones and SIM Cards, LCD, LED, Plasma TVs, White Goods and New Furniture.
  3. Excluded Cargo. Unless otherwise approved by Cabrella, the following commodities are excluded: Antiques, Artwork, Bagged Goods, Bulk and Break Bulk Cargoes, Bonds, Deeds, Manuscripts, Securities and Plans, Treasury Notes and the like, Designs, Patterns, Plans, Manuscripts, Documents, Livestock, Plants and Animals, Cigars, Cigarettes, Tobacco and Tobacco Products, Cement, Cash and Credit Cards, Bullion, Stamps, Duty Stamps, Tickets, Arms, Ammunition, Military Equipment and any similar goods, Furs, Skins and Hides, Hazardous, Restricted or Controlled Goods, Household Goods and Personal Effects, Motor Vehicles, Perishable Foodstuffs and other temperature sensitive commodities and Scrap metals.
  4. Restricted Cover. In respect of Unpacked and/or Unprotected Cargo, Second-hand and/or Used Cargo, cover excludes water damage, damage to paint work, ordinary wear and tear, chipping, denting, scratching, marring, bruising and loss, damage or expense caused by rust, oxidization and/or discoloration howsoever arising.
  5. Rates & Limit. As listed in your Coverage Guideline section of the User account at log in.
  6. Deductible:
    1. For general approved merchandise, deductible of $250 USD applies for each and every claim.
    2. For target, theft attractive, fragile goods and goods susceptible to breakage, a deductible of 1% of the sum insured with a minimum of $500 USD each and every claim applies.
  7. Basis of Valuation. Declared Value (Invoice Cost Value or Sales Price if a contract of sale has been agreed prior to the transit).
  8. Exclusions.
    1. Fully assembled motor vehicles excluded absolutely (new or used).
    2. Scratching, denting, marring and/or chipping and claims for repainting on unpacked unprotected items, or items which are not packed in fully enclosed crates.
    3. Rust, oxidization and discoloration on unpacked, unprotected items, or items which are not packed in fully enclosed crates.
    4. Mechanical and/or electrical and/or electromagnetic derangement unless caused by a peril insured against.
    5. Loss or damage due to moth, vermin, mildew, mold, rust, discoloration, inherent vice, wear, tear and gradual deterioration.
  9. Climatic Conditions. Excluding loss or damage by climatic or atmospheric conditions or extremes of temperature unless such claim is recoverable under the terms of the Institute Cargo Clauses (C) CL384 01/01/2009. No claim to attach hereto for damage to strings, reeds and/or drumheads in respect of musical instruments.
  10. Accumulation Clause. The limits of liability expressed herein shall not apply in the event of accumulation of Shipments in one port or place during transit due to circumstances outside the Assured's control. Underwriters agree to cover the excess amount up to the full value at risk, provided notice be given in all such cases as soon as known to the Assured, but in no event shall liability exceed double the limits of liability expressed herein.
  11. Pairs and Sets Clause. In the event of loss or damage to any article or articles which are part of a pair or set, the measure of loss of or damage to such article or articles shall be the proportional value that it bears to the total value of the pair or set. In no event shall such loss or damage be construed to mean total loss of the pair or set.
  12. Replacement Parts. In the event of loss of or damage to any part of an insured machine or other manufactured item consisting of more than one part caused by a peril covered by this Policy, the sum recoverable shall not exceed the cost of replacement or repair of such part(s) plus labor for (re)fitting and carriage costs. Duty incurred in the provision of replacement or repaired part(s) shall also be recoverable provided that the full duty payable on the insured machine or manufactured item is included in the amount insured. The total liability of Insurers shall in no event exceed the amount insured of the machine or manufactured item.
  13. 100% Co-Insurance Clause. If the Assured’s customers fail to insure for the full replacement value of goods at destination, the Assured and/or their Customers will only be entitled to recover from the Underwriters the proportion of the loss as the declared value bears to the total value of the property shipped.

COMPLIANCE WITH LAWS AND REGULATIONS. By declaring a parcel or shipment to CABRELLA for insurance coverage, You warrant that the shipment is in compliance with all foreign, federal, state, and local laws, including export regulations and Customs regulations, and that no controlled substances or illicit contraband is being shipped. Losses are not reimbursable under this Agreement from the seizure or loss of illicit contraband or other controlled substance, violations of Customs regulations or Carrier rules, or items shipped to restricted persons under export control regulations.

ADDITIONAL CONDITIONS & CLAUSES. ADDITIONAL CONDITIONS & CLAUSES INCLUDE BUT ARE NOT LIMITED TO: CANCELLATION CLAUSE, SUBROGATION CLAUSE, SUE AND LABOR CLAUSE, LIMITATION OF SUIT CLAUSE, OTHER INSURANCE (CLAUSE), PAIRS AND SETS CLAUSE, Termination of Transit Clause (Terrorism) 2009, Cyber Attack Exclusion, Sanction Limitation and Exclusion Clause (JC2010/014), INSTITUTE CARGO CLAUSES (A) CL.382 01/01/2009, INSTITUTE CARGO CLAUSES (AIR) CL.387 01/01/2009, INSTITUTE CLASSIFICATION CLAUSE CL.354 1/1/01, INSTITUTE WAR CLAUSES (CARGO) CL.385 01/01/2009, INSTITUTE WAR CLAUSES (AIR CARGO) CL.388 01/01/2009, INSTITUTE WAR CLAUSES (SENDINGS BY POST) CL.390 01/03/2009, INSTITUTE STRIKES CLAUSE (CARGO) CL.386 01/01/2009, INSTITUTE STRIKES CLAUSES (AIR CARGO) CL.389 01/01/2009, Institute Radioactive Contamination, Chemical, Biological, Bio-Chemical and Electromagnetic Weapons Exclusion Clause CL 370, Electronic Data Recognition Exclusion (EDRE) NMA 2802 or as may be agreed by the Leading Underwriter each declaration, NMA 2920 Terrorism Exclusion and NMA2921 Terrorism Exclusion RI as per LMA / NMA approved forms, US Terrorism Risk Insurance Act of 2002 as amended New and Renewal Business Endorsement LMA 5091, US Terrorism Risk Insurance Act of 2002 as amended Not Purchased Clause LMA 5092, Service of Suit Clause LMA 5028 or NMA1998 Naming Mendes and Mount New York as applicable each declaration as per LMA / NMA approved forms, SEVERAL LIABILITY NOTICE:LSW1001 (Insurance).

SECTION 4 – NOTICE OF TERRORISM INSURANCE

POLICYHOLDER DISCLOSURE NOTICE OF TERRORISM INSURANCE COVERAGE. You are hereby notified that under the Terrorism Risk Insurance Act (TRIA), as amended, that You may have a right to purchase insurance coverage for losses arising out of acts of terrorism, as defined in TRIA. Any coverage You purchase for "acts of terrorism" shall expire the date on which the TRIA Program is scheduled to terminate or the expiry date of the policy whichever occurs first, and shall not cover any losses or events which arise after the earlier of these dates.

YOU SHOULD KNOW THAT COVERAGE PROVIDED BY THIS POLICY FOR LOSSES CAUSED BY CERTIFIED ACTS OF TERRORISM IS PARTIALLY REIMBURSED BY THE UNITED STATES UNDER A FORMULA ESTABLISHED BY FEDERAL LAW. HOWEVER, YOUR POLICY MAY CONTAIN OTHER EXCLUSIONS WHICH MIGHT AFFECT YOUR COVERAGE, SUCH AS AN EXCLUSION FOR NUCLEAR EVENTS. UNDER THIS FORMULA, THE UNITED STATES PAYS 85% OF COVERED TERRORISM LOSSES EXCEEDING THE STATUTORILY ESTABLISHED DEDUCTIBLE PAID BY THE INSURER(S) PROVIDING THE COVERAGE. YOU SHOULD ALSO KNOW THAT THE TRIA, AS AMENDED, CONTAINS A $100 BILLION CAP THAT LIMITS U.S. GOVERNMENT REIMBURSEMENT AS WELL AS INSURERS' LIABILITY FOR LOSSES RESULTING FROM CERTIFIED ACTS OF TERRORISM WHEN THE AMOUNT OF SUCH LOSSES IN ANY ONE CALENDAR YEAR EXCEEDS $100 BILLION. IF THE AGGREGATE INSURED LOSSES FOR ALL INSURERS EXCEED $100 BILLION, YOUR COVERAGE MAY BE REDUCED.

THE PREMIUM CHARGED FOR THIS COVERAGE IS PROVIDED AND DOES NOT INCLUDE ANY CHARGES FOR THE PORTION OF LOSS COVERED BY THE FEDERAL GOVERNMENT UNDER THE TRIA.

You hereby elect to have coverage for acts of terrorism excluded from Your policy. You understand that You will have no coverage for losses arising from acts of terrorism.