Table of Contents
PUPFL100 (11/09)
American Alternative Insurance Corporation
Personal and Business Owner’s Umbrella Liability Policy
Florida
TABLE OF CONTENTS
Page
General Information ……………………………………………………….. 1
A
g
reement …………………………………………………………………...... 1
Definitions …………………………………………………………………...... 1
What This Polic
y
Covers …………………………………………………. 3
Polic
y
Territor
y
……………………………………………………………… 4
Defense And Settlement ………………………………………………….. 4
What Is Excluded Under Covera
g
e A ……………………………….. 5
What Is Excluded Under Covera
g
e B ……………………………….. 9
Your Res
p
onsibilities ……………………………………………………… 9
General Conditions …………………………………………………………. 10
PUPFL100 (11/09)
Page 1 of 11
American Alternative Insurance Corporation
Personal and Business Owner’s Umbrella Liability Policy
Florida
Various provisions in this policy may restrict coverage. Read the entire policy carefully to determine your rights
and duties, and what is and is not covered. We will not pay sums or perform acts or services unless specially
provided for in this policy.
As used in this policy, the words you and your mean any person or organization who is shown as the Named Insured
on the Personal and Business Owner’s Umbrella Declarations (hereinafter referred to as the Declarations Page) of this
policy. Other persons or organizations may also be covered persons within this policy. We, us, and our refer to the
Insurance Company named on the Declarations Page of this policy.
Other words or phrases that are boldfaced in this policy or that are boldfaced in endorsements to this policy
have special meaning. These are explained in the Definitions section of this policy or in the endorsement if
necessary. If you have any concerns about this policy, ask your agent or broker who will be happy to answer your
questions.
AGREEMENT
We agree to provide the insurance described in this policy in return for the premium paid. You agree to comply
with all responsibilities, conditions and terms of this policy.
DEFINITIONS
Certain words in your policy and its endorsements are printed in bold type. This is to let you know these words
have a defined meaning. Carefully read these definitions below or in the endorsement if one is included.
1. Covered person means:
a. Individual. If this policy is in your name as an individual: you, any business described on the Declarations
Page and Umbrella Schedule of which you are a sole proprietor, your spouse if a resident of the same
household, any relative, ward or foster child who lives in your household, or any person under the age of 21
who lives in your household and who is under your care or the care of a relative who lives in your
household;
b. Partnership-joint venture. If this policy is in the name of a partnership or joint venture: that
organization, any individual partners or co-venturers and their spouses, but only for their liability as
members of the named organization and with respect to the conduct of such partnership or joint venture.
c. Corporation. If this policy is in the name of a corporation or other type of business organization: the
organization, its executive officers, directors and stockholders while acting within the scope of their
duties for the named organization;
d. Employees. Your employees while they are acting within the scope of their employment by you or while
performing duties related to the conduct of your business; however, employees do not include
independent contractors;
e. Real estate manager. Any person or organization, other than your employees, while acting as a real
estate manager for you;
f. Limited Liability Company. You, if this policy is in the name of a Limited Liability Company. It also means
your members but only with respect to the conduct of your business, and that of your managers but only
with respect to their duties as your managers;
g. Trust. You
, if this policy is in the name of a Trust. It also means your trustees but only with respect to their
duties as your trustees;
h. Those covered under your primary insurance. Any other person or organization who is covered under
your primary insurance, subject to the same coverage terms, conditions, limitations and exclusions
contained in your primary insurance.
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American Alternative Insurance Corporation
2. Advertising injury means the following offenses committed in the course of your advertising activities and
while your policy is in effect:
a. Oral or written publication of material that slanders or libels a person or organization or disparages a
person’s or organization’s goods, products or services;
b. Oral or written publication of material that violates a person’s right of privacy;
c. Misappropriation of advertising ideas or style of doing business;
d. Infringement of copyright, title or slogan.
3. Aircraft means any contrivance used or designed for flight, except model or hobby aircraft not used for or
designed to carry people or cargo.
4. Auto means a motorized land vehicle, which requires motor vehicle registration and/or operator licensing,
including attached trailers, travel trailers, motor homes and motorcycles.
5. Bodily Injury means bodily injury, sickness or disease sustained by a person. This includes resulting death from
any of these at any time.
6. Business includes any trade, profession or occupation. It does not include any farming activities.
7. Business property includes:
a. Property on which a business is conducted;
b. Property which is rented or held to be rented to others.
This does not include property rented to others for habitational use with fewer than five units at one location,
covered by a personal lines primary insurance liability policy, and listed in the Personal Umbrella section of
the Umbrella Schedule.
8. Fungi includes, but is not limited to, any form or type of fungus, including mold or mildew and any mycotoxins,
spores, scents or byproducts produced or released by fungi.
9. Loss means:
a. An accident, including continuous or repeated exposure to substantially the same general harmful
conditions, which results in bodily injury or property damage during the policy period;
b. An offense, including a series of similar or related offenses, committed during the policy period, which
results in personal injury or advertising injury.
10. Motorcycle means a motor vehicle registered for road use, having a seat or saddle for the use of the rider,
designed to travel on not more than three wheels in contact with the ground and weighing less than 1,500
pounds. A motor vehicle that has four wheels in contact with the ground, two of which are a functional part of a
sidecar, is a motorcycle. For purposes of this policy, a motor scooter or moped is considered a motorcycle.
11. Net loss means:
a. The amount the covered person is legally obligated to pay as damages as a result of a loss, and includes
any prejudgement interest awarded against a covered person.
b. All reasonable expenses the covered person incurs in the investigation, settlement, and defense of any
claim or suit at our request. This does not include expenses covered by primary insurance or other
insurance, expenses we incur under the Defense and Settlement Section of this policy, or salaries of
employees of the covered person.
12. Other insurance means insurance available to any covered person that covers a loss to which this policy
applies, other than either primary insurance or insurance specifically purchased by you to be excess of the
insurance afforded by this policy.
13. Personal Injury means physical or mental harm arising out of one or more of the following acts, but only if the
act was committed during the policy period:
a. False arrest, detention or imprisonment;
b. Malicious prosecution;
c. Wrongful entry or eviction;
d. Any oral or written publication that slanders, libels, disparages, or violates a person’s right of privacy.
14. Prejudgment interest means interest added to a settlement, verdict, award or judgment based on the time
the loss occurred to the time of the settlement, verdict, award or judgment, whether or not made part of
the settlement, verdict, award or judgment.
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American Alternative Insurance Corporation
15. Primary insurance means the policies listed in this policy’s Umbrella Schedule.
16. Primary Insurer means any insurer that issues a policy of primary insurance.
17. Property damage means:
a. Physical injury to or destruction of 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. All such loss of use shall be deemed to
occur at the time of accident, defined in part a. of the definition of loss that caused it.
For the purposes of this insurance, electronic data is not tangible property. As used in this policy, electronic
data means information, facts or programs stored as or on, created or used on, or transmitted to or from
computer software, including systems and applications software, hard or floppy disks, CD-ROMS, tapes, drives,
cells, data processing devices or any other media which are used with electronically controlled equipment.
18. Recreational vehicle means a motorized land vehicle, which is designed for recreational use off public roads.
A recreational vehicle does not include:
a. A motor home or travel trailer which requires motor vehicle registration;
b. A motor vehicle not intended for recreational use such as a bulldozer, farm equipment, cranes, forklifts or
other construction vehicles, machinery or equipment; or
c. A golf cart which is not registered for road use and used primarily on and around a golf facility, around a
private residence and/or a private community.
19. Retained limit means the greater of:
a. The sum of the applicable limit of liability of your primary insurance as it is shown in this policy’s Umbrella
Schedule and the actual amount collectible under any other insurance which applies; or
b. If this policy applies but your required primary insurance does not provide coverage for the loss,
the amount shown on this policy’s Declaration Page as the Self Insured Retention.
20. Suit means any civil proceeding which alleges damages because of loss. In addition to civil litigation, suit
includes:
a. An arbitration proceeding alleging such damages and to which a covered person must submit or submits
with our consent; or
b. Any other alternative dispute resolution proceeding alleging such damages and to which the covered
person submits with our consent.
21. Watercraft means a boat or craft principally designed to be propelled on or in the water by wind, engine
power or electric motor.
WHAT THIS POLICY COVERS
Coverage A- Bodily Injury, Personal Injury, Advertising Injury and Property Damage Liability.
1. This policy covers a covered person’s legal obligation to pay damages for a covered loss over and above the
retained limit. If a covered person is legally obligated to pay damages for a loss to which this policy
applies, we will pay the net loss minus the retained limit.
2. The Limit of Liability as shown in this policy’s Declarations Page for Coverage A is the most we will pay for any
one loss, regardless of the number of covered persons, persons or organizations injured, claims made,
suits brought or organizations making claims or bringing suits.
3. The Policy Total Limit shown in this policy’s Declarations Page for Coverage A is the most we will pay for all
losses arising out of business operations and/or business property during each policy period. This policy
total limit applies separately to the policy period shown on the Declarations Page and to each subsequent
consecutive annual period unless the policy period 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 policy total limit.
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American Alternative Insurance Corporation
Coverage B- Excess Uninsured and Underinsured Motorists Bodily Injury Insurance.
1. The terms, conditions and exclusions of the uninsured motorists insurance (including underinsured motorists) of
the automobile liability primary insurer policy listed in the Umbrella Schedule also apply to this coverage,
except for any stacked or accumulated uninsured motorists (including underinsured motorists) insurance
limits provided by such automobile liability primary insurer policies listed in the Umbrella Schedule. The
Limits of Insurance provided as shown in this policy’s Declarations Page for Coverage B are not cumulative
regardless of the number of automobile liability primary insurer policies listed in the Umbrella Schedule
involved, uninsured (including underinsured) motorists insurance limits involved, autos covered or involved in
an accident, persons or organizations injured, covered persons, exposures or premiums charged as shown on
the Declarations Page, claims made, or the stacked limits elected on the primary insurer policies listed in the
Umbrella Schedule.
2. We will pay those sums which a covered person or their legal representative shall become legally entitled to
recover as damages because of loss which is covered by the uninsured motorists insurance (including
underinsured motorists) of the automobile liability primary insurer policy listed in the Umbrella Schedule,
less the applicable limit of liability of uninsured or underinsured motorists insurance.
3. The Limit of Liability as shown in this policy’s Declarations Page for Coverage B is the most we will pay for
any one loss, regardless of the number of covered persons, persons or organizations injured, claims made,
autos covered under this policy, autos involved in an accident, coverages under this policy, exposures or
premiums charged in the Declarations Page or persons or organizations making claims or bringing suits. The
Limit of Liability as shown in this policy’s Declarations Page for Coverage B is not cumulative and cannot be
multiplied regardless of the limits of uninsured (including underinsured) motorists insurance coverage
available or stacking elections made on the primary insurer policies listed in the Umbrella Schedule.
4. The Policy Total Limit as shown in this policy’s Declarations Page for Coverage B is the most we will pay for all
losses during each policy period. The policy total limit applies separately to the policy period shown on the
Declarations Page and to each subsequent consecutive annual period unless the policy period 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 policy total limit.
POLICY TERRITORY
Coverage A- Bodily Injury, Personal Injury, Advertising Injury and Property Damage Liability.
1. This insurance applies to a loss anywhere in the world.
Coverage B- Excess Uninsured and Underinsured Motorists Bodily Injury Insurance.
1. Applies to loss which is sustained during the policy period within the policy territory defined in the uninsured
motorists insurance (including underinsured motorists) of the automobile liability primary insurer listed in
the Umbrella Schedule.
DEFENSE AND SETTLEMENT
Coverage A- Bodily Injury, Personal Injury, Advertising Injury and Property Damage Liability.
1. If a claim is made or a suit is brought against a covered person for damages because of a loss to which this
insurance applies:
a. At our discretion, we may investigate any loss and settle any claim or suit. We have a duty to provide a
defense at our expense by counsel of our choice unless the loss is covered by your primary insurance or
other insurance.
b. We have the right but not the duty to join, at our expense, with the covered person or any primary
insurer in the investigation, defense, or settlement of any claim or suit which we believe may require a
payment under this policy. When we have no duty to provide a defense, we will not contribute to costs and
expenses incurred by the covered person or any primary insurer, or which any primary insurer is
obligated to provide.
c. Our duty to defend any claim or suit arising out of a single loss ends when the applicable limit of
liability is exhausted in the payment of judgments or settlements.
d. In any country where we are prevented from defending a covered person because of laws or other reasons,
we will pay any expense incurred with our written consent for that defense.
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American Alternative Insurance Corporation
2. When we have the duty to defend a claim or suit under this policy, we will:
a. Pay premiums on bonds to release attachments up to the limit of this policy. We will also pay premiums
on appeal bonds and the cost of bail bonds but we will not apply for or furnish such bonds.
b. Pay interest, which accrues after the date of judgment and before we pay or tender, or deposit in court,
that part of any judgment within this policy’s applicable limit of liability.
c. Pay all reasonable expenses incurred at our request. We will pay the covered person up to $200 per day,
but not to exceed $10,000 in total for loss of earnings for attending hearings or trials at our request.
d. Pay all expenses we incur and costs taxed against a covered person in any suit we defend.
3. When we settle a claim, we will pay all settlement expenses we have agreed to pay.
Coverage B- Excess Uninsured and Underinsured Motorists Bodily Injury Insurance.
1. We have no duty or obligation to assume the responsibility for the investigation, settlement or defense of any
claim made or any suit brought by or on behalf of any covered person.
2. However, we shall have the right and shall be given the opportunity to investigate and to be associated in
the control of any claim or suit or loss which may, in our opinion, create liability on our part under the terms
of this policy.
WHAT IS EXCLUDED
Under Coverage A- Bodily Injury, Personal Injury, Advertising Injury and Property Damage Liability.
1. WE DO NOT PROVIDE COVERAGE UNLESS COVERED BY YOUR PRIMARY INSURANCE LISTED IN THE
UMBRELLA SCHEDULE AND DESCRIBED IN THE UMBRELLA SCHEDULE FOR:
a. Loss arising out of business operations or business property.
b. Loss arising out of:
i. Autos which are owned by, leased to, rented to, or provided for the regular use of a covered
person;
ii. Recreational vehicles which are owned by, leased to, rented to, or provided for the regular use of
a covered person;
iii. Watercraft which are owned by, leased to, rented to, or provided for the regular use of a
covered person.
However, the following watercraft do not need to be described in the Umbrella Schedule as long as
coverage is provided in your primary insurance which is listed in the Umbrella Schedule:
Watercraft of the following types if under 27 feet in overall length;
Without motors,
Rented inboard and inboard/outdrive of 50 horsepower or less,
Owned of 25 horsepower or less, or
Owned or rented sailboats; or
iv. Residential property (including occasional residences).
This exclusion (part 1.b) does not apply if newly acquired, leased or rented by you during the policy
period and are covered by the primary insurance listed in the Umbrella Schedule.
2. WE DO NOT PROVIDE COVERAGE UNLESS COVERED BY YOUR PRIMARY INSURANCE LISTED IN THE
UMBRELLA SCHEDULE FOR:
a. Personal Injury or Advertising Injury.
However, this insurance will not provide coverage under any circumstance for any personal injury or
advertising injury:
i. caused by or at the direction of a covered person with the knowledge that the act would violate the
rights of another and would inflict personal injury or advertising injury;
ii. arising out of oral or written publication of material, if done by or at the direction of a covered person
with knowledge of its falsity;
iii. arising out of oral or written publication of material whose first publication took place before the
beginning of the policy period;
iv. arising out of a criminal act committed by or at the direction of a covered person;
v. arising out of the infringement of copyright, patent, trademark, trade secret or other intellectual
property rights;
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American Alternative Insurance Corporation
vi. committed by a covered person whose business is:
a. Advertising, broadcasting, publishing or telecasting;
b. Designing or determining content of web-sites for others; or
c. An Internet search, access, content or service provider; or
vii. arising out of an electronic chatroom or bulletin board a covered person hosts, owns, or over which a
covered person exercises control.
b. Vicarious parental liability, whether or not statutorily imposed, for the actions of a child or minor.
c. Loss that results because you or any covered person is engaged in the business of manufacturing,
distribution, selling or serving alcoholic beverages if liability is imposed by reason of:
i. Causing or contributing to the intoxication of any person;
ii. The furnishing of alcoholic beverages to a person under the legal drinking age or under the
influence of alcohol; or
iii. Any statute, ordinance or regulation relating to the sale, gift, distribution or use of alcoholic beverages.
d. Loss by reason of the assumption of liability in any contract or agreement. This exclusion does not apply
to liability for damages, which would have been covered in the absence of the contract or agreement.
e. Loss arising out of, resulting from, caused by or contributed to by any animal.
f. Loss arising out of, resulting from, caused by or contributed to by trampolines or swimming pools.
g. Any loss resulting from any of the following, even if other events or happenings contributed concurrently,
or in sequence, to the loss:
Earth movement, due to natural or man-made events, meaning earthquake including land shock waves, or
tremors, before, during or after a volcanic eruption; mine subsidence; landslide; mud-slide; mud flow; earth
sinking; rising or shifting.
3. WE DO NOT PROVIDE COVERAGE EXCEPT UNDER EXPLICITLY STATED CONDITIONS FOR:
a.
Loss or resulting damage either expected or intended by the covered person. This exclusion does not
apply to bodily injury resulting from the use of reasonable force to protect persons or property.
b. Loss arising out of any covered person’s act, error or omission as a member of an organization’s board of
directors or as an officer of an organization. This exclusion does not apply if you are an individual and the
organization:
i. Was formed as a not-for-profit organization;
ii. Does not involve the business of any covered person; and
iii. Such covered person serves without remuneration.
c. Loss arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or
escape of pollutants or any loss, cost or expense arising out of any:
i. Request, demand or order that any covered person or others test for, monitor, clean up, remove, contain,
treat, detoxify or neutralize, or in any way respond to or assess the effects of pollutants; or
ii. Claim or suit by or on behalf of a governmental authority or others for damages because of testing
for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing, or in any way
responding to or assessing the effects of pollutants.
Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor,
soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or
reclaimed.
This exclusion does not apply to loss arising out of heat, smoke, or fumes from a hostile fire if such loss is
covered by your primary insurance. Hostile fire means one which becomes uncontrollable or breaks out
from where it was intended to be.
d. Loss arising out of the use, sale, manufacture, delivery, transfer or possession of a controlled
substance(s) as defined by the Federal Food and Drug Law at 21 U.S.C.A. sections 811 and 812. Controlled
substances include, but are not limited to, cocaine, LSD, marijuana and all narcotic drugs. However, this
exclusion does not apply to the legitimate use of prescription drugs by a person following the orders of a
licensed physician.
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4. WE NEVER PROVIDE COVERAGE OR DEFENSE FOR:
a. Liability that is payable or must be provided under:
i. Any workers’ or unemployment compensation, disability benefits or similar law; or
ii. The Employees Retirement Income Security Act (ERISA) of 1974 as now written or as it may be amended
in the future.
b. Claims for personal injury or bodily injury to a covered person.
c. Any person or organization for their liability arising from membership in a partnership or joint venture
or limited liability company or trust which is not a covered person.
d. Property damage to any:
i. Property owned by, rented to or occupied by any covered person;
ii. Property which a covered person uses, has custody of, controls or manages; or
iii. Premises any covered person sells, gives away, or abandons, if the property damage arises out of any
part of those premises.
e. Ownership, chartering, renting or leasing, maintenance, use, operation (including loading or unloading),
entrustment or supervision of any aircraft.
f. Providing or failing to provide any professional service by or on behalf of any covered person. If
advertising injury is covered by your primary insurance listed in the Umbrella Schedule, this exclusion
will not apply to advertising injury arising out a covered person’s business operations only if such
covered person is not in the business of:
i. Advertising, broadcasting, publishing or telecasting;
ii. Designing or determining content of web-sites for others;
iii.
An Internet search, access, content or service provider; or
iv. Hosting, owning, operating, managing, or controlling an electronic chatroom or bulletin board.
g. Loss which is covered by a nuclear energy liability policy issued by a group such as one of those listed
below, or which would have been covered by such a policy, if such policy had been acquired or if its limits
had not been exhausted:
i. The American Nuclear Insurers;
ii. The Mutual Atomic Energy Liability Underwriters; or
iii. The Nuclear Insurance Association of Canada
h. Losses arising out of:
i. The toxic or pathological properties of lead, lead compounds or lead contained in any materials;
ii. Any cost or expense to abate, mitigate, remove or dispose of lead, lead compounds or materials
containing lead;
iii. Any supervision, instructions, recommendations, warnings or advice given or which should have been
given in connection with i or ii above; or
iv. Any obligation to share damages with or repay someone else who must pay damages in connection with i,
ii or iii above.
i. Losses arising out of:
i. The toxic or pathological properties of asbestos, asbestos compounds or asbestos contained in any
materials;
ii. Any cost or expense to abate, mitigate, remove or dispose of asbestos, asbestos compounds or
materials containing asbestos;
iii. Any supervision, instructions, recommendations, warnings or advice given or which should have been
given in connection with i or ii above; or
iv. Any obligation to share damages with or repay someone else who must pay damages in connection with i, ii
or iii above.
j. Loss arising, directly or indirectly, out of:
i. War, including undeclared or civil war;
ii. Warlike action by a military force, including action in hindering or defending against an actual or
expected attack by any government, sovereign or other authority using military personnel or other
agents; or
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iii. Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in
hindering or defending against any of these.
k. Loss arising out of discrimination including, but not limited to sexual preference, pregnancy, marital
status, color, race, sex, age, disability, religion or national origin.
l. Loss arising out of employment related practices, policies, acts or omissions, such as coercion,
demotion, termination, evaluation, reassignment, discipline, defamation, harassment, humiliation or
discrimination.
m. Transmission or alleged transmission by any covered person of a communicable sickness or disease.
n. Actual or threatened abuse or molestation including, but not limited to, mental, physical or sexual
abuse or molestation of any person while in the care, custody or control of any covered person.
o. Ownership or operation of a farm.
p. Any covered person’s share of any loss assessments charged against all members of an association,
corporation, or community of property owners.
q. Loss arising out of any contracting or property development operations by or on behalf of any covered
person.
r. Fines, penalties, punitive or exemplary damages of any kind.
s. Loss for Bodily Injury, or Property Damage or Personal Injury and/or Advertising Injury arising
directly or indirectly out of any action or omission that violates or is alleged to violate:
i. The Telephone Consumer Protection Act (TCPA), including any amendment of or addition to such law;
ii. The CAN-SPAM Act of 2003, including any amendment of or addition to such law; or
iii. Any statute, ordinance or regulation, other than the TCPA or CAN-SPAM Act of 2003, that prohibits or
limits the sending, transmitting, communicating or distribution of material or information.
t. Loss arising out of any:
i. First party automobile personal injury protection, no-fault automobile coverage, or any similar
coverage.
ii. Medical payments as provided under any primary insurance.
iii. Uninsured or underinsured motorists coverage or any similar coverage.
u. Loss sustained by an employee, prospective employee, former employee (or the beneficiaries or
legal representatives of any of them) of any covered person caused by or arising out of improperly
administering or failing to administer any employee benefit program.
v. Loss arising from Fungi or Bacteria:
i. to any liability which would not have occurred, in whole or in part, but for the actual, alleged or
threatened inhalation of, contact with, exposure to, or presence of, any fungi or bacteria on or within a
building or structure, including its contents, regardless of whether any other cause, event, material or
product contributed concurrently or in any sequence to such injury or damage.
ii. any loss, cost or expenses arising out of the abating, testing for, monitoring, cleaning up, removing,
containing, treating, detoxifying, neutralizing, remediating or disposing of, or in any way responding to,
or assessing the effects of, fungi or bacteria, by any covered person or by any other person or entity.
This exclusion does not apply to any
fungi or bacteria that are, are on, or are contained in, a good or
product intended for consumption.
w. Any loss or claim for damages arising out of or related to bodily injury or property damage, whether
known or unknown by any covered person, any claimant or us if:
i. Such bodily injury or property damage first occurred prior to the inception date of this policy; or
ii. Such bodily injury or property damage is, or is alleged to be, in the process of occurring as of the
inception date of this policy.
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x. Employers’ liability. If an employee of any covered person suffers a loss arising out of and in the course of
their employment, we will not cover or defend against:
i. Claims made against a covered person as an employer or in any other capacity;
ii. Claims made against a covered person by a spouse, child, parent, brother or sister of a covered
person’s employee as a consequence of a loss sustained by the employee;
iii. Any obligation to share damages with or indemnify someone else for damages that arise from loss; or
iv. Any damages claimed for care or loss of services.
y. Loss arising out of racing activities involving the use of autos, recreational vehicles or watercraft while
they are being operated in, or practicing for, any prearranged or organized race, speed contest or other
similar competition by a covered person. However, this exclusion does not apply to sailboats.
WHAT IS EXCLUDED
Under Coverage B- Excess Uninsured and Underinsured Motorists Bodily Injury Insurance.
WE NEVER PROVIDE COVERAGE FOR:
1. Loss occurring at any time during which you do not maintain uninsured motorists (including underinsured
motorists) primary insurance.
2. Loss, which is not covered or collectible for any reason under your uninsured motorists (including
underinsured motorists) primary insurance.
3. Fines, penalties, punitive damages or exemplary damages of any kind.
4. Loss arising out of any:
a. First party automobile personal injury protection or no-fault automobile coverage or any similar coverage.
b. Medical payments as described in your primary insurance.
YOUR RESPONSIBILITIES
1. Primary insurance requirements:
a. You agree that all primary insurance described in this policy or Umbrella Schedule is in force for any:
i. Personal residence or rental property owned, rented or leased by you or any covered person.
ii. Business operations or business property owned, rented or leased by you or any covered
person; and
iii. Auto, watercraft or recreational vehicle owned, leased, rented or provided for the regular use of any
covered person.
b. You agree that all your primary insurance will be maintained with the coverages and at the limits
declared and described in the Umbrella Schedule for all covered persons. If your primary insurance
does not provide the limits indicated, the covered person will be responsible for the amount of the net
loss up to the indicated limits of the primary insurance as described in the Umbrella Schedule.
c. In the event of bankruptcy or insolvency of any primary insurer, the insurance afforded by this policy shall
not replace such primary insurance, but shall apply as if the primary insurance was valid and collectible.
2. After a loss:
a. If a loss seems likely to involve this policy, you and any involved covered person must:
i. Notify your broker, your agent or us as soon as possible. We may subsequently require a detailed
written notice of loss. We should be given a full description of the loss, including the names and
addresses of any persons injured and any witnesses.
ii. Promptly send us copies of any notices, legal papers or other documents received
or sent in
connection with the loss.
iii. Cooperate with us in the investigation, settlement and defense of any claim or suit. We do not have to
provide coverage if you or any covered person involved refuses to assist us.
iv. Obtain our written consent before making any payments, assuming any obligations or incurring
any expenses with respect to a loss covered by this policy. Any covered person who makes any
payment, assumes any obligation or incurs any expense with respect to a loss covered by this policy
without our prior written consent undertakes such actions voluntarily and at such covered person’s
own cost.
v. Assist us in the enforcement of any right against any person or organization who may be liable to you in
connection with the loss.
PUPFL100 (11/09)
Page 10 of 11
American Alternative Insurance Corporation
b. If the insurer of any primary insurance denies coverage for any reason, the covered person must
immediately notify us in writing and tell us the reason for such denial as stated by the primary
insurer. Before making a claim under this policy, if we request it, the covered person must start legal
proceedings at our expense against the primary insurer to determine, by final judgment, the legality of
its position.
c. If the covered person breaches a primary insurance policy condition, and if such breach is not a
breach of a condition of this policy, the insurance afforded by this policy shall apply as if the primary
insurance had not been breached.
GENERAL CONDITONS
1. Changing Your Policy.
Any change to this policy must be made by endorsement issued by us. We will adjust the premium if
necessary. If we broaden the coverage in our umbrella liability program without increasing the premium, we
will also apply the broadened coverage to your policy. The broadened coverage will apply only to loss that
occurs after the date the coverage is added.
2. Premium.
The premium for this policy is a flat charge determined in advance and is based on the exposures declared in
the application. Changes which occur after the inception of the policy, in driving records or the number of
drivers, autos, recreational vehicles, watercraft or residential premises covered by the policy will not affect
the premium.
3. Cancelling and Non-renewal of your policy
a. We shall give You at least 45 days advance written notice of nonrenewal or of the renewal premium. If the
policy is not to be renewed, the written notice shall state the reason or reasons as to why the policy is not to
be renewed. This requirement applies only if You have furnished all of the necessary information so as to
enable Us to develop the renewal premium prior to the expiration date of the policy to be renewed.
b. We shall give You written notice of cancellation or termination other than nonrenewal at least 45 days prior
to the effective date of the cancellation or termination, including in the written notice the reason or reasons
for the cancellation or termination, except that:
i. When cancellation is for nonpayment of premium, at least 10 days written notice of cancellation
accompanied by the reason therefore shall be given; and
ii. When such cancellation or termination occurs during the first 90 days during which the insurance is in
force and the insurance is canceled or terminated for reasons other than nonpayment of premium, at
least 20 days' written notice of cancellation or termination accompanied by the reason therefore shall be
given except where there has been a material misstatement or misrepresentation or failure to comply
with the underwriting requirements established by Us.
After the policy has been in effect for 90 days, no such policy shall be canceled by Us except when there has
been a material misstatement, a nonpayment of premium, a failure to comply with underwriting
requirements established by Us within 90 days of the date of effectuation of coverage, or a substantial
change in the risk covered by the policy or when the cancellation is for all covered persons under such
policies for a given class of insureds. The provisions of this
subsection shall not apply to individually rated
risks having a policy term of less than 90 days.
c. If We fail to provide the 45-day or 20-day written notice required under this section, the coverage provided
to You shall remain in effect until 45 days after the notice is given or until the effective date of replacement
coverage obtained by You, whichever occurs first. The premium for the coverage shall remain the same
during any such extension period except that, in the event of failure to provide notice of nonrenewal, if the
rate filing then in effect would have resulted in a premium reduction, the premium during such extension of
coverage shall be calculated based upon the later rate filing.
d. We may cancel or nonrenew this policy by mailing by registered or certified mail or United States Post
Office proof of mailing or by delivering written notice to you at your mailing address shown in the
Declarations or at your last address known to us. Proof of mailing will be sufficient proof of notice.
PUPFL100 (11/09)
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American Alternative Insurance Corporation
4. Expense Fee.
Regardless of whether you or we cancel the policy, the expense fee will be refunded pro-rata.
5. Transferring Your Policy.
You agree not to transfer or assign any of your rights under this policy without our written approval.
6. Bankruptcy, Insolvency or Death.
This policy’s coverage is not affected by your bankruptcy or insolvency. If you die or are declared bankrupt or
insolvent, your estate and your legal representatives will be covered until the end of the policy period.
7. Appeals.
If a covered person or any insurer providing primary insurance elects not to appeal a judgment which
exceeds the retained limit, we may do so at our own expense. We will pay all costs, taxes, expenses and
interest related to our appeal. The amounts we pay will be in addition to our limit of liability.
8. Legal Action Against Us.
No covered person may bring legal action against us concerning this policy unless such covered person has
fully complied with all of its terms and conditions. No legal action may be brought against us until judgment
against such covered person has been finally determined after trial or by agreement between the claimant or
the claimant’s legal representative and us. This policy does not give anyone the right to make us a party to any
action to determine the liability of a covered person. We are not liable for damages that are not payable under
this policy or that are in excess of the applicable limits of insurance.
9. Our Right to Recover from Others.
After we have made payment under this policy, we have the right to recover the payment from anyone, other
than you, who may be held responsible for the loss. A covered person will be required to sign any papers
and do whatever else is necessary to transfer this right to us. Neither you nor anyone else we insure in this
policy has the right to do anything after a loss to prejudice our right.
10. Sole Agent.
The Named Insured first shown on the Declarations Page is authorized to act on behalf of all covered
persons with respect to giving notice of cancellation or non-renewal, receiving refunds and agreeing to any
changes in this policy.
11. Other Insurance.
If other insurance applies to a loss covered by this policy, the insurance under this policy is excess and we
will not make any payments until such other insurance is used up. This condition does not apply if the other
insurance is specifically written to be excess over this policy.
12. Representations.
By accepting this policy, you agree that the statements in the Declarations Page and Umbrella Schedule are
accurate and complete, those statements are based upon representations you made to us through your broker
whose name appears on our Declarations Page, and we have issued this policy in reliance upon your
representations. This policy is void in any case of material misrepresentation by you as it relates to this policy or
any claim under this policy.
13. Fraud.
We do not provide coverage for any covered person who has made fraudulent statements or engaged in
fraudulent conduct in connection with any loss for which coverage is sought under this policy.
AAIC-PP-1 Ed. 06/01 Page 1 of 1
American Alternative Insurance Corporation
NOTICE
American Alternative Insurance Corporation's Privacy Policy
Dear Policyholder:
The nature of our insurance business at American Alternative Insurance Corporation (“AAIC”) requires that we gather
and maintain a variety of information about our current and potential customers and consumers, including nonpublic
personal information about individuals. We are committed to keeping confidential and secure any such nonpublic
personal information. We will disclose nonpublic personal information obtained in the course of our business only as
permitted by law.
Categories of Personal Information We May Obtain
We may obtain nonpublic personal information from the following sources:
Applications or other underwriting forms. These forms provide us with information we need as part of the
underwriting process; this can include such nonpublic personal information as individuals' names, addresses, social
security numbers and any other information about individuals that we are authorized to obtain in order to
underwrite and administer policies and claims.
Information we obtain from third parties. The kind of information we may gather from third parties
depends on the type of insurance policy or coverage, but may include such nonpublic personal information as motor
vehicle reports, claims reports, credit reports, property inspection reports, and medical records or reports.
Information about transactions and experiences with us or with our affiliates. We develop and
maintain individuals’ personal information, such as policy numbers, premium payments and claims history, obtained
on the basis of AAIC’s or its affiliates transactions and experiences.
How We May Use and Share Personal Information
We may use and share all of the information that we obtain as described below:
Within AAIC
Within AAIC we only use nonpublic personal information received to service or maintain policies, to effect, process,
administer or enforce requested or authorized transactions, or for other purposes as permitted by law. We restrict
access to nonpublic personal information to those employees who have a business reason to know that information
to provide products and services. We also maintain physical, electronic, and procedural safeguards in order to
protect against unauthorized use or disclosure of nonpublic personal information.
With Affiliates and Non-Affiliated Third Parties
We may disclose information about AAIC's customers and consumers to others, including our affiliates (i.e.
companies that are related to us by common ownership or control), in order to offer insurance products or services
that may be of value.
We may also disclose nonpublic personal information without prior permission to nonaffiliated third parties (i.e.,
persons or companies that are not related to us by common ownership or control) as necessary to effect, process,
administer or enforce a requested or authorized transaction, or for other purposes as permitted by law.
When we provide nonpublic personal information to a nonaffiliated third party who performs services for us, we
require that provider to agree to safeguard any nonpublic personal information, to use the information only for the
intended purpose, and to abide by applicable law.
Confidentiality of Health and Medical Information
It is often necessary for us to obtain personal health information in order to underwrite and process claims for
various types of insurance coverages. We recognize concerns about the security of that information and want to
provide assurance that any personal health data provided to us or that we otherwise obtain will be held in strict
confidence. We will not disclose or share personal medical information for marketing or any other unauthorized
purpose. We may disclose or share personal medical information as permitted by law; for example, in order to
underwrite policies or administer policies or claims.
Purpose of and Updates to This Notice
We recognize and respect the privacy concerns of our potential and current customers and consumers. We may
amend our privacy policy from time to time. We send this notice of our privacy policy at this time as required for
informational purposes, and we will update and distribute it as required by law.
FLAAIC – Customer Assistance Notice Edition 10/99
American Alternative Insurance Corporation
FLORIDA NOTICE TO
POLICYHOLDERS
CUSTOMER ASSISTANCE
Attach This Notice To Your Policy
This notice is for information only and does not alter the terms or
conditions of the policy to which it is attached.
To obtain information or make a complaint:
You may call the following American Alternative Insurance
Corporation toll-free number to present inquiries, obtain information
or make a complaint:
1-800-305-4954
