GENERAL PROPERTY COVERAGE

FOR THE

PURMS JOINT SELF-INSURANCE AGREEMENT

Amended and Restated as of November 21, 2002

TABLE OF CONTENTS

Definitions for the General Property Coverage. 4

Interest and Property Insured. 13

Coverage A:  Property Owned or Held by Member 13

Coverage B:  Property-in-Transit 14

Coverage C:  Property-Under-Construction. 14

Coverage D:  Extra Expense. 14

Coverage E:  Expediting Expenses. 15

Schedule of Values. 15

Administrator Shall Maintain Schedule of Values of Insured Property. 15

Schedule of Values Establishes Identity of Insured Property for Coverage Purposes. 15

Schedule of Values Establishes Insured Values of Insured Property for Assessment Purposes. 16

Property Coverage Limit 16

Property Coverage Limit and Board Modification of the Same. 17

Maximum Property Retention and Board Modification of the Same. 17

Extended Property Coverage When Applicable Excess Property Insurance Retention Exceeds the Property Coverage Limit and Creates a Gap in Coverage. 18

Coverage Territory. 19

Perils Insured Against 19

Deductibles. 19

Assigned Deductibles. 19

Mandatory Deductibles. 20

Property Deductible Credits. 21

Property Excluded. 22

Perils Excluded. 23

General Perils Exclusions. 23

Additional Exclusions Applicable to Electronic Data Equipment and Media. 26

Additional Exclusions Applicable to Property-in-Transit 26

Exclusion re Losses to Partially Exempt Insured Property. 27

Valuation of Property Loss. 27

Coverages A and B only ("Property Owned or Held by Member" and "Property-in-Transit 27

Coverage B: "Property-in-Transit.\ 29

Coverage C: "Property-under-Construction\ 29

Limitations. 29

Coverage Conditions. 29

Conditions Applicable to Coverage A Only: "Property Owned or Held by Member" (Regarding Newly Acquired Property, Leased Property and Assumed Liability)