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AUTOMOBILE LIABILITY COVERAGE

AUTOMOBILE LIABILITY COVERAGE

 

FOR THE

 

PURMS JOINT SELF-INSURANCE AGREEMENT

 

Adopted as of March 30, 1995

 

TABLE OF CONTENTS

                                                                                                                                                    

1.     Definitions for Automobile Liability Coverage. 2

1.1       Accident 2

1.2       Auto. 2

1.3       Covered Vehicle. 2

1.4       Insured. 3

1.5       Insured Contract 3

1.6       Medical Expenses. 4

1.7       Mobile Equipment 4

1.8       Public Utility Operations. 5

1.9       PUD Business. 5

1.10     PUD Vehicle. 5

1.11     Trailer 6

1.12     Uninsured Motor Vehicle. 6

1.13     Uninsured Vehicle Coverage. 6

1.14     Uninsured Vehicle Coverage Limit 6

2.     Insuring Agreement and Conditions for Automobile Liability Coverage. 6

2.1       General Automobile Liability Coverage for Claims Arising out of an Accident 6

2.2       Liability Coverage Limit 6

2.3       Deductible. 7

2.4       Limited Uninsured/Underinsured Motorist Coverage for Medical Expenses. 7

2.5       Other Insurance and Third Party Indemnifications. 9

2.6       Separation of Insureds with Respect to Liability Claims Asserted Among Members and Single Liability Coverage Limit 10

2.7       Board's Authority to Establish the Number of Accidents Involved in a Covered Automobile Liability Claim.. 10

3.     Exclusions for Automobile Liability Coverage. 10

3.1       Personal Use of Covered Vehicles. 10

3.2       Expected or Intended Injury. 10

3.3       Assumed Contractual Liability. 10

3.4       Workers' Compensation. 11

3.5       Employee Indemnification and Employer's Liability. 11

3.6       Fellow Employee. 11

3.7       Property Within Insured's Care, Custody or Control 11

3.8       Handling of Property. 11

3.9       Movement of Property by Mechanical Device. 12

3.10     Mobile Equipment Operation. 12

3.11     Completed Operations. 12

3.12     War 12

3.13     Fines and Penalties. 12

3.14     Other Insurance and Third Party Indemnities. 13

3.15     Injunctive Relief 13

3.16     When Fund Lacks Coverage Authority. 13

 

 



AUTOMOBILE LIABILITY COVERAGE

 

For The

 

PURMS JOINT SELF-INSURANCE AGREEMENT

 

Adopted as of March 30, 1995

 

Overview of Coverages for PURMS Risk Pools

 

The Coverages Sections of the SIA set forth the Insuring Agreements, Exclusions, and other terms and conditions which comprise the Coverages provided by the Fund for the Members of its Risk Pools and, as applicable, their Employees under the SIA. 

 

The current Liability Coverage provided by the Fund for Members of the Liability Pool includes:  Commercial General Liability (SIA § III, “CGL”); Public Officials & Entity Liability (SIA § IV, “PO&E”); Automobile Liability (SIA § V); and Pollution Liability (§ VI). The CGL Coverage was originally adopted on December 20, 1976, has been amended from time to time, and was unanimously re-adopted by the Members on December 7, 2001.  The PO&E, Automobile and Pollution Liability Coverages were first adopted effective March 30, 1995. The PO&E Coverage was unanimously re-adopted by the Members on December 7, 2001.

 

The current Property Coverage provided by the Fund for Members of the Property Pool includes:  General Property Coverage (SIA § X) and Auto Physical Damage Coverage (SIA § XI). Both of these Property Coverages were originally adopted effective February 27, 1997.

 

Members of the Property Pool may participate in either or both Property Coverages (SIA § X and/or § XI).  Members of the Liability Pool must participate in all Liability Coverages provided by the Fund (SIA § III - VI).

 

The current Health & Welfare Coverage provided by the Fund for the Members of the H&W Pool is set forth in § XIV. The H&W Coverage was originally adopted on March 16, 2000, effective April 1, 2000, and was amended and restated and unanimously re-adopted by the Members as of December 7, 2001.

 

These Coverages, as amended from time to time pursuant to § I, ¶ 5.2, are specifically incorporated into the Interlocal Agreement and shall be deemed a part of that Agreement as if fully set forth therein.

 

           

 

 

 

 

AUTOMOBILE LIABILITY COVERAGE

 

1.                         Definitions for Automobile Liability Coverage.  The Definitions set forth in the Definitions Section of the SIA (see, § II) are applicable to the interpretation of the Coverage provided by this Automobile Liability Coverage Section, except as may be modified specifically or by implication by the definitions set forth below which are specific to the Automobile Liability Coverage in this § V. 

 

1.1                      Accident -- with respect to this Automobile Liability Coverage Section, shall mean an unusual, unexpected and unforeseen happening, including continuous or repeated exposure to the same conditions, causing Bodily Injury or Property Damage resulting from the ownership, maintenance or use of a Covered Vehicle by an Insured. (see § V, ¶ 2.1).  Multiple Claims arising out of a single Accident, even if asserted against different Members or their Employees, shall be deemed to be a single Covered Liability Claim arising from a Single Accident.

 

1.2                      Auto -- means a land motor vehicle, trailer or semi-trailer designed for travel on public roads, but does not include Mobile Equipment, except for the types of "self-propelled" Mobile Equipment identified in § V, ¶ 1.7(f).

 

1.3                      Covered Vehicle -- shall mean:

 

(a)                       Owned Autos -- which are only those Autos owned by a Member including owned private passenger autos and Owned Autos other than private passenger autos, and (including trailers not owned by the Member but attached to power units the Member does own). 

 

(b)                      Hired Autos -- which means only those Autos that are leased, hired, rented or borrowed by a Member, or by an Employee for the Member's account or by the Employee personally, in connection with PUD Business.

 

(c)                       Nonowned Autos -- which means Autos that are not owned, leased, hired, rented or borrowed by a Member, but that are used in connection with the Member's Public Utility Operations.  "Nonowned Autos" includes Autos owned by the Member's Employees or members of such Employee's households, but only while used in connection with the Member's PUD Business; subject, however, to the Other Insurance provisions in ¶ 2.5.

 

(d)                      Other Covered Vehicles -- shall mean:

 

(1)            Trailers --  which have a load capacity of 2,000 lbs. or less designed primarily for travel on public roads.

 

(2)            Mobile Equipment  --  while being carried or towed by a Covered Vehicle.

 

(3)            Substitute Autos  -- which means any Auto a Member does not own, while used with the permission of its owner as a temporary substitute for a Covered Vehicle a Member does own that is out of service because of breakdown, repair, servicing, loss or destruction.

 

1.4                      Insured -- for purposes of the Auto Liability Coverage Section, shall mean any person or organization qualifying as an Insured as follows:

 

(a)             The Member, for any Covered Vehicle;

 

(b)            Any Employee, and members of the Employee's household, while using any Covered Vehicle, other than a Non-Owned Auto, with the Member's express or tacit permission and in connection with PUD Business,  except:

 

(1)            The owner or anyone else from whom the Member hired or borrowed a Covered Vehicle (provided, this exception does not apply if the Covered Vehicle is a "trailer" connected to a "Covered Vehicle" that qualifies as an Owned Auto).

 

(2)            Anyone other than a Member's Employees, partners, a lessee or borrower or any of their employees, while moving property to or from a Covered Vehicle;

 

(c)             An Employee, and members of the Employee's household, if the Covered Vehicle is owned by that Employee or a member of his or her household; provided the Employee is using the Nonowned Auto with the Member's express or tacit permission and such use is in connection with PUD Business;

 

(d)            Any Third Party, while using a Covered Vehicle with the express permission of a Member or Employee, but only if such use is in connection with the Member's Public Utility Operations; and

 

(e)             Anyone liable for the conduct of an Insured described above, but only to the extent of that liability.

 

1.5                      Insured Contract -- shall mean:

 

(a)             A lease of premises;

 

(b)            A sidetrack agreement;

 

(c)             Any easement or license agreement, except in connection with construction or demolition operations on or within 50 ft. of any railroad real property;

 

(d)            An obligation, as required by ordinance, to indemnify a municipality, except in connection with work for a municipality;

 

(e)             That part of any contract or agreement entered into, in connection with a Member's Public Utility Operations pertaining to the rental or lease, by the Member or by any of the Member's Employees, of any Auto;  provided, however, such contract or agreement shall not be considered an Insured Contract to the extent that it obligates the Member or any of its Employees to pay for Property Damage to any Auto rented or leased by the Member or by any of the Member's Employees.

 

An "Insured Contract" does not include that part of any contract or agreement:

 

(1)            That indemnifies any person or organization for Bodily Injury or Property Damage arising out of construction or demolition operations within 50 ft. of any railroad real property;

 

(2)            That pertains to the loan, lease or rental of an Auto to a Member or to any of a Member's Employees if the Auto is loaned, leased, or rented with a driver; or

 

(3)            That holds a person or organization engaged in the business of transporting property by Auto for hire harmless for a Member's use of a Covered Vehicle over a route or territory that person or organization is authorized to serve by public authority.

 

1.6                      Medical Expenses -- All reasonable expenses reasonably incurred in the treatment of injuries sustained in an Accident for which Uninsured Vehicle Coverage is provided under ¶ 2.4, including all charges for hospitalization, doctors' fees, dental fees, charges by treatment centers or nursing homes, costs of physical therapy, costs of prostheses or other medical devices, and charges for medications, laboratory and diagnostic procedures, or other reasonably necessary medical charges.

 

1.7                      Mobile Equipment -- shall mean any of the following types of land vehicles, including any attached machinery or equipment:

 

(a)             Bulldozers, farm machinery, forklifts, and other vehicles designed for use principally off the public road;

 

(b)            Vehicles maintained for use solely on or next to premises owned or rented by a Member;

 

(c)             Vehicles that travel on crawler tread;

 

(d)            Vehicles, whether self-propelled or not, maintained primarily to provide mobility to permanently mounted: 

 

(1)            Power cranes, shovels, loaders, diggers, or drills; or

 

(2)            Road construction or reservicing equipment such as graders, scrapers or rollers.

 

(f)              Vehicles not described in paragraphs (a) through (d) above that are not self-propelled and are maintained primarily to provide mobility to permanently attached equipment of the following types:

 

(1)            Air compressors, pumps, and generators, including spraying, welding, building, cleaning, geophysical exploration, lighting and well servicing equipment; or

 

(2)            Cherry pickers and similar devices used to raise or lower workers.

 

(g)             Vehicles not described in paragraphs (a) through (d) above maintained primarily for purposes other than the transportation of persons or cargo.  However, self-propelled vehicles with the following types of permanently attached equipment are not "Mobile Equipment" but will be considered "Autos":

 

(1)            Equipment designed primarily for snow removal, road maintenance (but not construction or reservicing), or street cleaning;

 

(2)            Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and

 

(3)            Air compressors, pumps and generators, including spraying, welding, building, cleaning, geophysical exploration, lighting or well servicing equipment.

 

1.8                      Public Utility Operations -- shall mean the operations of the Member related to, arising from or associated with the production, transmission, delivery or furnishing of electricity, gas, water or sewer service to the public, including the ownership, operation, management or control of any plant or equipment used in connection therewith.

 

1.9                      PUD Business  --  shall, for purposes of the Auto Coverage section, mean all activities falling within the definition of Public Utility Operations which involve the use of a Covered Vehicle, and all business activities related thereto (like attending seminars, conventions, trade association meetings, etc.) involving the use of a Covered Vehicle, so long as the primary purpose for such use is related to such business activities and any use thereof for personal purposes is incidental to such business use.

 

1.10                   PUD Vehicle -- shall mean any Covered Vehicle operated or otherwise being used by an Insured,  regardless of who is actually driving the vehicle, subject, however, to the Other Insurance provisions in ¶ 2.5. (see ¶ 2.4.1).

 

1.11                   Trailer -- shall include semi-trailer.

 

1.12                   Uninsured Motor Vehicle -- shall include an "underinsured" motor vehicle and shall mean a motor vehicle with respect to the ownership, maintenance, or use of which either no bodily injury or liability bond or insurance policy applies at the time of an Accident, or with respect to which the sum of the limits of liability under all bodily injury liability bonds and insurance policies applicable to a person after an Accident is less than the Uninsured Vehicle Coverage Limit provided for in § V, ¶ 2.4.2, and shall include, but not be limited to, hit and run motor vehicles and vehicles which cause an Accident without physical contact where the owner or operator of such vehicle cannot be located following the Accident after diligent search; provided, however, that Uninsured Motor Vehicles shall not include vehicles (1) owned by any governmental unit or agency, (2) designed mainly for use off public roads while not upon public roads, (3) while located for use as a residence or premises, or (4) owned or operated by a person or entity qualifying as a self-insurer under any applicable motor vehicle law.

 

1.13                   Uninsured Vehicle Coverage -- shall mean the Liability Coverage provided to Members of the Liability Pool in ¶ 2.4 for Medical Expenses for any person that, while occupying a PUD Vehicle, sustains Bodily Injury caused by an Accident with an Uninsured Motor Vehicle.

 

1.14                   Uninsured Vehicle Coverage Limit -- shall mean the Liability Coverage Limit and related terms set forth in ¶ 2.2, which is applicable to the Fund's Uninsured Vehicle Coverage contained in ¶ 2.4.1, as modified by the terms of the Uninsured Vehicle Coverage Limit contained in ¶ 2.4.2.

 

2.                         Insuring Agreement and Conditions for Automobile Liability Coverage.  Under its Automobile Liability Coverage, the Fund provides the following:

 

2.1                      General Automobile Liability Coverage for Claims Arising out of an Accident.  Except as otherwise provided in this ¶ 2 and in ¶ 3 below, or in other sections of the SIA (see, e.g., § I., ¶ 13.5), and subject to § VII regarding Claims Resolution, the Fund shall pay on behalf of any Insured all Defense Costs and all Damages such Insured has or may become legally obligated to pay to a Third-Party resulting from a Covered Liability Claim for Bodily Injury or Property Damage caused by an Accident that happens during the Coverage Period.

 

2.2                      Liability Coverage Limit.  The Fund shall not be obligated to pay an amount in excess of the Liability Coverage Limit established by the Board for one or more Covered Liability Claims arising out of any one Accident, irrespective of the number of Members or Employees who may be liable therefor; provided, however, that all Defense Costs incurred in connection with a Covered Liability Claim shall be included within the Liability Coverage Limit; and provided further, that if coverage for Defense Costs under the applicable Excess Liability Policy with respect to a particular Covered Liability Claim does not begin at the point the Fund has paid the total amount of its Liability Coverage Limit, including Defense Costs, and if the amount of Defense Costs and Incurred Liability resulting from the Covered Liability Claim exceed the Liability Coverage Limit, then the Board may, for Sufficient Cause and by Super-Majority Vote, increase the Liability Coverage Limit for such Claim in an amount within its discretion, up to a maximum of $500,000 of additional Coverage for the Claim, including Defense Costs.  The Fund's Liability Coverage Limit, effective January 1, 1996, is $1,000,000, less the amount of the Deductible determined by the Board as provided in ¶ 2.3; provided, however, that the Board may increase or decrease the Liability Coverage Limit from time to time by Super-Majority Vote, and any such change shall thereafter be reflected  as provided in § I, ¶ 5.7, and in § V, ¶ 2.2 of revised Operational Rules.  Any such change in the amount of the Liability Coverage Limit shall not apply to any Claim arising from an Accident which took place prior to the effective date of the amendment, except as permitted in § I., ¶ 5.4.2.2.  The Board shall attempt to coordinate any changes in the Liability Coverage Limit with the Attachment Points of any Excess Liability Coverage to prevent or minimize any gaps in coverage. 

 

2.3                      Deductible.  All Members shall be required to pay a Deductible in an amount determined by the Board for each Covered Liability Claim asserted against a Member and/or its Employees. If more than one Covered Liability Claim arises out of one Accident, the Member shall be required to pay only one Deductible for all such Claims.  In a Multi-Member Claim, even if it arises out of a single Accident, each Member against which such Claim is asserted shall be required to pay a Deductible; provided, however, that the Member shall pay the Deductible when the Covered Liability Claim is asserted against both the Member and one or more of its Employees; and, provided further, that the Employee shall pay the Deductible with respect to a Covered Liability Claim asserted against the Employee only which does not involve the Member. The initial Deductible shall equal $250; provided, however, that the Board may increase or decrease the amount of the Deductible from time to time by Super-Majority Vote, and any such change shall thereafter be reflected  as provided in § I, ¶ 5.7, and in § V, ¶ 2.3 of revised Operational Rules.  A change in the amount of the Deductible shall not apply to any Liability Claim arising from an Accident which took place prior to the effective date of the amendment, except as permitted in § I., ¶ 5.4.2.2.

 

2.4                      Limited Uninsured/Underinsured Motorist Coverage for Medical Expenses.

2.4.1                                     Uninsured Vehicle Coverage.  Subject to the Uninsured Vehicle Liability Coverage Limit in ¶ 2.4.2 below and the Other Insurance provisions in ¶ 2.5, the Fund will pay Medical Expenses only which any person occupying a PUD Vehicle is legally entitled to recover from the owner or operator of an Uninsured Motor Vehicle for Bodily Injury caused by an Accident; provided, however, that the Fund shall have no obligation to any person injured in any such Accident until such time as the limits of liability under all applicable bodily injury liability bonds or insurance policies (including, but not limited to, any applicable uninsured or underinsured motorist coverages, worker's compensation, disability benefits or any coverage which would have been available but for a waiver entered into by the person injured or his/her employer) have been exhausted by payment of judgments or settlements.  The liability of the owner or operator of the Uninsured Motor Vehicle for these Medical Expenses must arise out of the ownership, maintenance or use of the Uninsured Motor Vehicle.

 

2.4.2                                     Uninsured Vehicle Liability Coverage Limit.  The Fund shall not be obligated to pay any amount in excess of the Liability Coverage Limit for Automobile Liability Coverage contained in ¶ 2.2, and subject to the terms contained therein, for Medical Expenses resulting from any one Accident, regardless of the number of persons or entities entitled to Coverage therefor, or the number of Claims asserted or PUD Vehicles involved in the Accident; provided, however, that the Uninsured Vehicle Liability Coverage Limit shall be reduced by all sums paid by or on behalf of any persons or entities who may be legally responsible to the injured person(s) for Medical Expenses, including, but not limited to, amounts paid under any workers' compensation law, disability benefits law, insurance policies (including any applicable health or medical insurance or uninsured or underinsured motorist coverages), and under any other Coverages of the SIA.  For purposes of determining the amount of Uninsured Vehicle Coverage available, it shall be conclusively presumed that any payments to any injured person by any persons or entities potentially responsible for the Accident or for paying some or all of the Damages arising out of the Accident shall be deemed to have been applied first to reimbursement of the injured person's Medical Expenses, and then to pain and suffering or Property Damage.

 

2.4.3                                     Deductible.  Any person claiming Uninsured Vehicle Coverage under this ¶ 2.5 shall be subject to a Deductible in the amount provided in ¶ 2.3.

 

2.4.4                                     Notice of Suit.  Any person seeking Uninsured Vehicle Coverage under this ¶ 2.4 must promptly send to the Fund copies of any notice of suit and all related legal papers in any suit arising from or involving the Accident.

 

2.4.5                                     Phantom Vehicles.  In the event of an accident caused by a hit and run driver in which there is no physical contact with the PUD Vehicle, the Fund shall have no obligation to make any Uninsured Vehicle Coverage payments unless:  (a) the facts of the Accident can be corroborated by competent evidence other than the testimony of any person having a Claim for Uninsured Vehicle Coverage resulting from the Accident; and (b) the Accident was reported to the appropriate law enforcement agency within 72 hours of the Accident.

 

2.4.6                                     No Benefit to Other Insurers.  The Uninsured Vehicle Coverage shall not apply directly or indirectly to benefit any insurer or self-insurer, including, but not limited to, any automobile insurer, uninsured or underinsured motor vehicle insurer, health or medical insurer, or any insurers or self-insurers under workers compensation law, disability benefits law, or any similar law. 

 

2.4.7                                     Additional Conditions and Limitations to Uninsured Vehicle Coverage.  Nothing contained in this ¶ 2.4 shall be construed to provide Uninsured Vehicle Coverage for any person operating a PUD Vehicle without a reasonable belief that the person is entitled to do so, or to provide any such Coverage for any Liability Claims for Damages, including but not limited to, lost wages, loss of consortium, pain and suffering, attorney fees or other consequential damages, sustained by any such person injured while occupying a PUD Vehicle other than for Medical Expenses.

 

2.4.8                                     No Member Settlement Ceiling.  The Member Settlement Ceiling provided for in § VII, ¶ 6.3 shall not apply to Claims made under this Uninsured Vehicle Coverage, and no Member shall have authority to settle any such Claim on behalf of the Fund.

 

2.4.9                                     Arbitration for Disputes Regarding Medical Expenses.  If the Fund and any person making a Claim for Uninsured Vehicle Coverage are unable to agree regarding whether such person is legally entitled to recover Medical Expenses hereunder, or regarding the amount of such Medical Expenses, either party may make a written demand for arbitration.  In this event, each party will select an arbitrator.  The two arbitrators will then select a third arbitrator; provided, however, if the two arbitrators cannot agree within 30 days to a third arbitrator, either party may request that selection be made by any judge of any court having jurisdiction.  The arbitrators shall be empowered to determine all rules and procedures for the arbitration, subject to their obligation to resolve the dispute between the parties in a fair, expeditious, and cost effective manner, and the decision of two of the three arbitrators shall be binding on the parties.  Each party will pay all expenses it incurs in the arbitration, including any fee charged by the arbitrator it selects.  The expenses of the third arbitrator, and all other common expenses, shall be borne equally by the parties.  Unless both parties agree or the arbitrators shall rule otherwise, arbitration will take place in the county in which the Member that owns the PUD Vehicle or whose Employee was involved with the PUD Vehicle is located.

 

2.5                      Other Insurance and Third Party Indemnifications.  If any valid and collectible Other Insurance or Third Party Indemnifications (hereinafter, "Third Party Indemnifications" are included within the meaning of "Other Insurance") are available to the Insured for a Claim the Fund Covers under its Automobile Liability Coverage in ¶¶ 2.1, the Fund's Coverage obligations are limited as follows:

 

(a)                                           This Automobile Liability Coverage provides primary insurance for any Covered Vehicle that is an Owned Auto.

 

(b)                                          This Automobile Liability Coverage is excess over valid and collectible Other Insurance for any Covered Auto a Member does not own.

 

(c)                                           While a Covered Auto which is a Trailer is connected to another vehicle, the Coverage provided by the Automobile Liability Coverage is:

 

(1)                                          Excess while it is connected to a Motor Vehicle the Member does not own.

 

(2)                                          Primary while it is connected to a Covered Vehicle that is an Owned Auto.

 

(d)                                          When the Automobile Liability Coverage and any Other Insurance covers on the same basis, either primary or excess, the Fund shall be obligated to pay only its proportionate share based on the ratio of its Liability Coverage Limit to the total applicable limits of all Other Insurance covering on the same basis.

 

2.6                      Separation of Insureds with Respect to Liability Claims Asserted Among Members and Single Liability Coverage Limit.  Except with respect to Liability Claims excluded under the Exclusion paragraph of the various Liability Coverage Sections of the SIA, in the event any Covered Automobile Liability Claim is asserted by an Insured under the SIA against any other Insured under the SIA, the Fund will provide Coverage for the Claim for such other Insured against which the Claim is made in the same manner as if the Claim was being asserted by a Third Party; provided, however, that when two or more different Members' Employees are involved in the same Accident, the total of the Fund's Liability Coverage obligation shall be its Liability Coverage Limit; and provided further, that no Employee of one Insured shall be construed to be an Employee of any other Insured, unless at the time of the Accident, there exists a relationship of master/servant between such Employer and such other Insured.

 

2.7                      Board's Authority to Establish the Number of Accidents Involved in a Covered Automobile Liability Claim.  The Board shall have the authority, by Super-Majority Vote, to establish the number of Accidents involved in connection with any Covered Automobile Liability Claim and such determination shall be binding on all Members involved in the Claim; provided, however, that in making its decision, the Board shall consider the advice of General Counsel regarding the applicable law; and provided, further, that the Board's failure to affirmatively establish the number of Accidents with respect to a Covered Automobile Liability Claim shall result in the Claim being treated as a single Accident by the Fund; and provided further, that any Dispute with the result of the Board's Vote  may be submitted to Arbitration pursuant to § I., ¶ 24.5, and the Arbitrator shall affirm the Board's decision unless it is contrary to clearly established Washington law.

 

3.                         Exclusions for Automobile Liability Coverage. Notwithstanding the provisions of any other section of the SIA, the Fund shall not provide Defense or Coverage for the types of Claims described in the "Exclusions" below which shall not be Covered Automobile Liability Claims.  The subsection headings for the Exclusions are for ease of reference only and shall have no effect with respect to the substantive meanings of the Exclusions.

 

3.1                      Personal Use of Covered Vehicles.  Any Claim arising out of an Insured's use of a Covered Vehicle, except for an Owned Auto, where the primary purpose of such use is personal and any use in connection with PUD Business is incidental to such personal use.  (See, ¶ 1.9.)

 

3.2                      Expected or Intended Injury.  Any Claim for Bodily Injury or Property Damage expected or intended from the standpoint of the Insured.

 

3.3                      Assumed Contractual Liability.  Any Claim for liability assumed under any contract or agreement;

 

(1)                                     But this Exclusion does not apply to liability for Damages:

 

(b)            Assumed in a contract or agreement that is an Insured Contract, provided the Bodily Injury or Property Damage occurs subsequent to the execution of the contract or agreement; or

 

(c)             That the Insured would have in the absence of the contract or agreement.

 

3.4                      Workers' Compensation.  Any Claim with respect to any obligation for which the Insured or the Insured's insurer may be held liable under any workers' compensation, disability benefits or unemployment compensation law or any similar law, or any Claim which would have been covered by any such law but for a waiver entered into by a Member with the Employee.

 

3.5                      Employee Indemnification and Employer's Liability.  Any Claim for Bodily Injury to:

 

(a)                       An Employee of the Member arising out of and in the course of employment by the Member, whether or not for compensation; or

 

(b)                      The spouse, child, parent, brother or sister of that Employee as a consequence of paragraph (a) above.

 

(1)                 This Exclusion applies:

 

(1)                      Whether the Member 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.

 

(2)                 But this Exclusion does not apply to liability assumed by the Insured under an Insured Contract.

 

3.6                      Fellow Employee.  Any Claim for Bodily Injury to any fellow employee of the Insured arising out of and in the course of the fellow employee's employment with the Member.

 

3.7                      Property Within Insured's Care, Custody or Control.  Any Claim for Property Damage to property in the Insured's care, custody or control. 

 

3.8                      Handling of Property.  Any Claim for Bodily Injury or Property Damage resulting from the handling of property:

 

(a)                       Before it is moved from the place where it is accepted by the Insured for movement into or onto the Covered Vehicle; or

 

(b)                      After it is moved from the Covered Vehicle to the place where it is finally delivered by the Insured.

 

3.9                      Movement of Property by Mechanical Device.  Any Claim for Bodily Injury or Property Damage resulting from the movement of property by a mechanical device (other than a hand truck) unless the device is attached to the Covered Vehicle.

 

3.10                   Mobile Equipment Operation.  Any Claim for Bodily Injury or Property Damage arising out of the operation of any of the types of Mobile Equipment identified in ¶ 1.7.

 

3.11                   Completed Operations.  Any Claim for Bodily Injury or Property Damage arising out of a Member's work after that work has been completed or abandoned. 

 

In this Exclusion, a Member's "work" means:

 

(a)   Work or operations performed by a Member or on its behalf; and

 

(b)  Materials, parts or equipment furnished in connection with such work or operations.

 

A Member's "work" includes warranties or representations made at any time with respect to the fitness, quality, durability or performance of any of the items included in subparagraphs (a) or (b) above.

 

A Member's work will be deemed completed at the earliest of the following times:

 

(1)            When all of the work called for in the Member's contract has been completed.

 

(2)            When all of the work to be done at the site has been completed if the Member's contract calls for work at more than one site.

 

(3)            When that part of the work done at a job site has been put to its intended use by any person or organization other than another contractor or subcontractor working on the same project.

 

Work that may need service, maintenance, correction, repair or replacement, but which is otherwise complete, will be treated as completed.

 

3.12                   War.  Any Claim for Bodily Injury or Property Damage due to war, whether or not declared, or to any act or condition incident to war.  War includes civil war, insurrection, rebellion or revolution. 

 

3.13                   Fines and Penalties.  The payment of any fines or civil or criminal penalties imposed upon a Member or Employee by any court or any Governmental agency arising out of or relating to an Accident.

 

3.14                   Other Insurance and Third Party Indemnities.  Any Claim for Damages for which coverage or protection is provided by any Other Insurance, according to the terms of ¶ 2.5.

 

3.15                   Injunctive Relief.  Any Claim seeking relief or redress in any form other than money damages, and any attorneys fees or expenses relating to or arising out of such a Claim.

 

3.16                   When Fund Lacks Coverage Authority.  Any Claim for which the Fund lacks authority to or is otherwise prohibited by law from providing Coverage.