GENERAL SECTION

A.     The Policy

     This policy includes at its effective date the Information Page and all endorsements and schedules listed there. It is a contract of insurance between you (the employer named in Item 1 of the Information Page) and us (the insurer named on the Information Page). The only agreements relating to this insurance are stated in this policy. The terms of this policy may not be changed or waived except by endorsement issued by us to be part of this policy.

B.     Who Is Insured

     You are insured if you are an employer named in Item 1 of the Information Page. If that employer is a partnership, and if you are one of its partners, you are insured, but only in your capacity as an employer of the partnership's employees.

C.     Workers Compensation Law

     Workers Compensation Law means the workers or workmen's compensation law and occupational disease law of each state or territory named in Item 3.A. of the Information Page. It includes any amendments to that law which are in effect during the policy period. It does not include any federal workers or workmen's compensation law, any federal occupational disease law or the provisions of any law that provide nonoccupational disability benefits.

D.     State

     State means any state of the United States of America, and the District of Columbia.

E. Locations

     This policy covers all of your workplaces listed in Items 1 or 4 of the Information Page; and it covers all other workplaces in Item 3.A. states unless you have other insurance or are self-insured for such workplaces.

PART ONE
WORKERS COMPENSATION INSURANCE

A.     How This Insurance Applies

     This workers compensation insurance applies to bodily injury by accident or bodily injury by disease. Bodily injury includes resulting death.

1.     Bodily injury by accident must occur during the policy period.

2.     Bodily injury by disease must be caused or aggravated by the conditions of your employment. The employee's last day of last exposure to the conditions causing or aggravating such bodily injury by disease must occur during the policy period.

B.     We Will Pay

     We will pay promptly when due the benefits required of you by the workers compensation law.

C.     We Will Defend

     We have the right and duty to defend at our expense any claim, proceeding or suit against you for benefits payable by this insurance. We have the right to investigate and settle these claims, proceedings or suits.

     We have no duty to defend a claim, proceeding or suit that is not covered by this insurance.

D.     We Will Also Pay

     We will also pay these costs, in addition to other amounts payable under this insurance, as part of any claim, proceeding or suit we defend:

1.     reasonable expenses incurred at our request, but not loss of earnings;

2.     premiums for bonds to release attachments and for appeal bonds in bond amounts up to the amount payable under this insurance;

3.     litigation costs taxed against you;

4.     interest on a judgment as required by law until we offer the amount due under this insurance; and

5.     expenses we incur.

E.     Other Insurance

     We will not pay more than our share of benefits and costs covered by this insurance and other insurance or self-insurance. Subject to any limits of liability that may apply, all shares will be equal until the loss is paid. If any insurance or self-insurance is exhausted, the shares of all remaining insurance will be equal until the loss is paid.

F.     Payments You Must Make

     You are responsible for any payments in excess of the benefits regularly provided by the workers compensation law including those required because:

1.     of your serious and willful misconduct;

2.     you knowingly employ an employee in violation of law;

3.     you fail to comply with a health or safety law or regulation; or

4.     you discharge, coerce or otherwise discriminate against any employee in violation of the workers compensation law.

     If we make any payments in excess of the benefits regularly provided by the workers compensation law on your behalf, you will reimburse us promptly.

G.     Recovery From Others

     We have your rights, and the rights of persons entitled to the benefits of this insurance, to recover our payments from anyone liable for the injury. You will do everything necessary to protect those rights for us and to help us enforce them.

H.     Statutory Provisions

     These statements apply where they are required by law.

1.     As between an injured worker and us, we have notice of the injury when you have notice.

2.     Your default or the bankruptcy or insolvency of you or your estate will not relieve us of our duties under this insurance after an injury occurs.

3.     We are directly and primarily liable to any person entitled to the benefits payable by this insurance. Those persons may enforce our duties; so may an agency authorized by law. Enforcement may be against us or against you and us.

4.     Jurisdiction over you is jurisdiction over us for purposes of the workers compensation law. We are bound by decisions against you under that law, subject to the provisions of this policy that are not in conflict with that law.

5.     This insurance conforms to the parts of the workers compensation law that apply to:

a.     benefits payable by this insurance;

b.     special taxes, payments into security or other special funds, and assessments payable by us under that law.

6.     Terms of this insurance that conflict with the workers compensation law are changed by this statement to conform to that law.

Nothing in these paragraphs relieves you of your duties under this policy.