1. Introduction

Lester Kalmanson Agency Inc. offers a claims made canine owners liability policy for owners of dogs considered dangerous by many homeowner's carriers or with an aggressive history. The policy is a manuscript policy and brokered through Lloyd's of London. Dogs that are often on the “dangerous breeds” list are as follows:

·Pit Bulls

·Rotweilers

·Chow Chows

·Doberman Pinchers

·German Shepherds

·Siberian Huskies

·Persa Canarios

·Alaskan Malamutes

·Akitas

·Boxers

·Great Danes

·Wolf-hybrids

2. Contact

Lester Kalmanson Agency Inc.

235 S Maitland Avenue Suite 201

P.O. Box 940008 Maitland, FL 32794-0008

407-645-5000

3. Underwriting guidelines

An application must be completed and the following information is required:

·documentation of the animal's medical/vaccination history

·role of the animal- family pet, competitive shows, breeding

·where and how the animal is kept-house, kennel, cage

·are any preventative measures used to prevent animal from harming guests or the public

·any history of bites or aggressive behavior

·description of the dog- breed, gender, age, name

Within the application the applicant is required to warrant that, as a condition of insurance, all dogs owned, leased, rented, or in the care, custody or control of the named insured or adult family member will be attached to a leash with a muzzle to the named insured/family member when off the property, and/or confined within a six foot high fence attached to the ground, or in the residence. The animal must also be restrained in such a way as to prohibit the dog from causing any harm to any member of the public, invitees, guests, or other blood family members.

4. Liability

Limits and deductibles available

Limits are on a per occurrence basis and begin at $25,000. Deductibles start at $5,000 and are applied per claim.

Who is insured

The policy provides coverage for the person or organization described in the declarations and qualifying as an insured in the person(s) insured section of the insurance coverage.

What is insured

The policy provides liability coverage for direct bodily injury and/or property damage caused by the owned/scheduled animal only. Any non-owned animals in the care, custody and control of the insured are not covered under this policy. Property damage coverage is not provided unless it is specifically endorsed to the policy.

Insuring agreement

The insurers agree to pay those sums that an insured becomes obligated to pay in the event of a loss that results in damages because of bodily injury or property damage to which this insurance applies during the policy period. The insuring agreement is restrictive; unless coverage is specifically provided for in the policy as indicated in the declarations, there is no coverage.

Therefore, the liability for dangerous breed dogs or dogs with a history of aggressive behavior is scheduled separately onto the policy. The insurer agrees to provide liability coverage for direct bodily injury or property damage caused by the owned and scheduled canine only. If the canine is not scheduled on the policy, there is no coverage. Non-owned canines in the care, custody and control of the insured are excluded. Unless specifically endorsed, there is no coverage for any commercial activity or operation, for physical damage, for premises liability or for animal mortality. The policy is designed to provide liability coverage only for the family pet. Animals used for shows, animals the insured may be pet sitting, and any resulting damages to property or injury to others are not covered under this policy unless specifically endorsed.

The schedule stipulates that coverage is provided for the family pet while on the named insured's designated premises only, or coverage is provided for the animal either on or off the premises. In this case the animal must be leashed and muzzled. The coverage purchased is indicated on the declarations, and the pet must be under the supervision or direct control of the resident household member or guest.

5. Service of suit

Since the policy is written through Lloyd's of London, the policy states that if the Underwriters do not pay an amount the insured believes to be covered they will submit to the jurisdiction of a Court of competent jurisdiction within the United States . No rights are waived by the Underwriters in this clause; they maintain the right to seek a transfer to a different court as permitted by the laws of the United States or the individual state in question.

The law firm of Mendes & Mount at is listed as United States representatives for Lloyd's where suit can be filed. Their address is listed as 750 7th Avenue, New York, New York 10019 .

6. Limitations clause

As this is a manuscript policy, liability coverage is limited to the specific description of hazards as listed in the policy. Any exposure or hazard not specifically listed is excluded from any liability coverage under this policy.

7. Supplementary payments

Any supplementary payments are applied in addition to the applicable liability limit of the policy.

Underwriter expenses, costs against the insured in any suit defended by the Underwriters, and the entire amount of all interest accumulated after the entry of judgment and before the underwriters have paid said judgment up to the aggregate limit are covered.

If the Underwriters pay the full limits of the policy, their obligation to defend any further litigation terminates immediately.

The Underwriters have no obligation to apply, furnish, or pay for any appeal bond that may be required in any litigation or to release any attachment in litigation. An appeal bond may be required of the party appealing a ruling, and guarantees that the appealing party, if he loses the case, will pay all court costs and expenses.

Unless specifically endorsed to this policy, no automobile liability coverage is provided. The policy will not meet any financial responsibility law in any state. In order for either of these to be covered, they must be specifically endorsed to the policy and the appropriate premium collected.

If the insured provides first aid to others at the time of an accident for injury that is covered under this policy, the insured can be paid a maximum of $250.00. The first aid must be provided at the time of the accident, and not later. The accident must also be an event that results in bodily injury for which this policy provides coverage.

If the Underwriters request the insured to assist in the investigation or defense of a claim or suit, reasonable expenses are available to the insured. The insured is entitled to not more than $25.00 per day up to a maximum of $500.00.

8. Definitions

Automobile – means a motorized land motor vehicle, trailer or semi trailer designed for travel on public roads. It is reiterated here that the policy supplies no liability coverage for motor vehicles unless endorsed to the policy.

Bodily injury – means injury, sickness or physical disease including death. Coverage for bodily injury does not apply to insureds, additional insureds, additional named insureds or employees. Coverage is intended for others the insured or employees may come in contact with, not the insured or employees.

Collapse Hazard – includes structural property damage as defined below and property damage to any third party's property resulting from the collapse hazard. The collapse hazard does not include property damage or bodily injury that arises out of operations performed for the insured by independent contractors, for liability the insured assumes under an incidental contract, or included within a completed operations hazard or underground property damage. For example, the insured hires a contractor to assist with a landscaping project, and in the course of working on the property the contractor damages the other party's building. This is not covered under the collapse hazard.

Structural Property Damage – means the collapse or damage to a building or structure as a result of any attempt to move, raise, demolish, shore, or underpin any building or structure, or by land degrading, excavating, filling, backfilling, tunneling cofferdam or caisson work. Damage is the result of human interaction not natural events such as tornadoes, earthquakes, falling trees.

Limits of Liability- is the maximum amount the Underwriters will be liable for to pay claims, and is stated on the declarations page.

Completed Operations Hazard – includes bodily injury or property damage arising from completed operations of the insured. It is a condition that any operations must be scheduled in order for liability coverage to be available. As the policy is manuscript to cover liability from injury caused by the scheduled pet only, there is no coverage for operations of the insured.

Operations – defines when operations are considered to be completed, and notes that operations include materials, parts, and/or equipment furnished in connection with any scheduled operations. Operations are considered to be complete when the work has been put to its intended use by someone other than contractors or employees involved in the operation itself. It is reiterated that any liability for operations is not covered by this policy unless it is deliberately scheduled.

Elevator - is defined as a device used to connect floors or landings but does not include a hoist without a platform outside a building or a dumbwaiter with a compartment shorter than four feet. Again, liability coverage is not provided unless specifically endorsed to the policy and a premium is collected.

Explosion Hazard – includes property damage arising out of blasting by the insured if it is specifically endorsed onto the policy.

Incidental Contract- includes a written lease of any premises/locations, an easement agreement except in connection with construction/demolition of scheduled operations on or next to a railroad, and agreeing to indemnify a municipality required by law/ordinance only. Also included are railroad sidetrack agreements or elevator maintenance agreements. An incidental contract does not include any oral contracts or agreements. Liability coverage for incidental contracts, railroad exposure, or any operations, incidental or not, is excluded unless specifically scheduled to the policy. Hold harmless agreements must also be specifically endorsed for any coverage to apply.

Insured – is defined as any person or organization qualifying as an Insured in the “person(s) insured” provision of the coverage and/or staff and employee(s). These individuals must have a financial interest in the covered exposures or operations of the policy. The insurance applies separately to each Insured named in the policy except with regard to the aggregate limits. The Named Insured is the same as Insured or Assured. The named insured is listed on the declarations page of the policy. No liability coverage is extended to any employees of the insured, and if the insured is a fiduciary, insurance does not apply to executive officers or employers with regard to injury, illness, etc. of another executive officer or employee.

Mobile Equipment – is a land vehicle and any machinery attached to the vehicle, whether or not self propelled. The vehicle is designed to provide mobility for larger equipment that is attached to the vehicle, such as cranes, shovels, loaders, diggers, pumps, drills. The vehicle is not subject to motor vehicle registration, is used exclusively on premises owned by the insured, and is designed for use off public roads. Recreational vehicles, including golf carts, three and four wheelers are not considered mobile equipment and as such are not covered unless specifically endorsed to the policy.

Named Insured's Products – includes any goods or products manufactured, sold, handled or distributed by the named insured. Also included are goods handled by others trading under the name of the named insured, and containers thereof excluding vending machines. Coverage for the named insured's products is limited to food and soft drink products sold or served by the named insureds, but only if products liability is contained within the policy. Any other product must be specifically scheduled in order for there to be liability coverage. Specifically mentioned is liability for the sale, distribution or furnishing of alcoholic beverages and for animals and equipment sold, handled, or distributed by the insured. Coverage is not provided unless the exposure is specifically endorsed to the policy and a premium collected.

Occurrence – is defined as an accident, and includes continuous or repeated exposure to conditions that result in bodily injury or property damage. The injury or damage is not expected or intended by the insured or any employee.

Policy Territory – is narrowly defined in this policy. The continental United States, Hawaii and Alaska are the only covered territories. Any other region must be specifically endorsed for any coverage to apply. This includes United States territories and possessions not included in the above, as well as any foreign countries. International waters and air space are not covered, nor is travel to or from any foreign country unless specifically endorsed. The designated premises of the policy are restricted to the location listed on the declaration page unless another location is specifically identified and endorsed. Additional locations are not automatically included; any location or territory not already specified in the policy must be separately endorsed.

Products Hazard – is bodily injury or property damage that results from the insured's scheduled products or reliance on a warranty or representation of the product. The injury or damage must occur away from the insured's premises and after the property has been turned over to others. In order for there to be products hazard coverage on the policy, it must be specifically endorsed.

Property Damage – means physical injury or destruction of tangible property, including loss of use of the property. This must occur during the policy period. Also included is loss of use of tangible property that has not been damaged or destroyed, but the loss of use arises from an occurrence during the policy period and caused by the insured. For example, the insured is doing landscaping on the property. In the course of digging the insured runs into the garage wall which collapses and blocks access to equipment and office space. The loss of use of those items will be covered.

Not covered as property damage are any animals, domestic/exotic/reptilian owned or non-owned and in the care, custody and control of the insured or its employees.

Underground Property Damage Hazard – is underground property damage as defined below and damage to any other non-owned property resulting from such damage. Not included in underground property damage hazard is damage arising out of operations performed for the insured by independent contractors, anything included within the completed operations hazard, or liability assumed by the insured under an incidental contract.

Underground Property Damage – is defined as damage to property under the surface of the ground or water and including wires, pipes, mains, conduits, sewers, tanks, or similar property. Damage is caused by the use of mechanical equipment for drilling, paving, excavating, grading, backfilling, or pile driving. In order for liability to apply to any operation using owned or non-owned mechanical equipment, such operations must be specifically scheduled to the policy.

Employee – any person hired by the insured under the insured's direct supervision and compensation program is considered an employee. Not included in this definition are leased, temporary, voluntary workers, or contractors and sub-contractors, pick up or auditioning personnel. If the employer has the right to control and direct the employee in the details as to how the work is conducted, that person is considered an employee. Independent contractors and sub-contractors will not be considered employees and no coverage will be provided unless specifically endorsed to the policy.

9. Conditions

Premium – Premiums are subject to the states' rates, and any advanced premium or minimum deposit premium is considered fully earned at inception of the policy period.

Inspection and Audit – The Underwriters have the right to inspect the Insured's property at any time, but are under no obligation to do so. An inspection by the Underwriter's does not give any warranty that the property, operations or activities are safe or in compliance with any required law or regulation. The Underwriter's also maintain the right to inspect and audit the insured's books, records, animal inventory, or veterinarian records during normal business hours.

Financial Responsibility Laws – the policy and endorsements do not and will not meet any financial responsibility law in any state for liability, physical damage, bodily injury, or personal injury claims.

Reimbursement – if the Underwriters make any payments that they would not have been required to make under the terms of this policy, the insured will reimburse the Underwriters for such payments.

Insured's Duties in the Event of a Loss – The insured is required to notify the Underwriters by written notice providing all information possible about the claim, including names and addresses of injured parties and witnesses. Any notification of suit is to be forwarded to the Underwriters, and the Insured is required to cooperate with the Underwriters throughout any claim investigation and any suit that may result from the claim. Any payment the insured makes voluntarily will be made at the insured's own risk, except for immediate first aid at the time or accident or at the direction of the Underwriter's.

Action Against Underwriters – Full compliance with the terms and conditions of the policy must be met before any action can be taken against the Underwriters. Bankruptcy of the Insured has no bearing on the obligations of the Underwriters under this policy.

Other Insurance – Unless otherwise stated as excess, or contingent on the lack of any other insurance, this insurance is primary. If there is other applicable insurance that is excess or contingent to losses covered under this policy the liability of this policy is not reduced in any way. The limit of insurance under this policy is not reduced by the existence of other insurance that is stated as excess over other coverage or contingent on lack of other coverage. For example, this policy has a coverage limit of one million dollars. The insured also has a policy issued by Big Dog Underwriters with a coverage amount of three million dollars. The Big Dog policy expressly states that it is excess over any other policy, or is primary only when there is no other policy in force. A claim occurs with a loss amount of two million dollars. This policy is responsible for the first million in coverage, and the Big Dog policy is responsible for the second million. The presence of the Big Dog policy does not reduce the liability from this policy as primary coverage.

When this policy and other insurance apply to a loss on the same basis, the payment due from each company is determined either by contribution by equal share or contribution by limit. When contribution by equal share is used, the insurers each pay an equal proportion of the loss until the loss is paid or until the equal share equals the lowest limit of liability under any one policy. The remaining insurers then continue to contribute equal shares until the loss is paid or the limits of the insurer have been reached. For example, Big Dog's policy limits are five million, Medium Dog's limits are three million, Little Dog's limits are one million, and Puppy Dog's limits are five hundred thousand. The loss is five million dollars. Each insurer pays five hundred thousand, at which point Puppy Dog's limit of liability is reached. So far two million of the loss has been paid. From there, Big Dog, Medium Dog and Little Dog continue paying in equal shares. After the next five hundred thousand is paid, Little Dog has reached its liability limit. Big Dog and Medium Dog then continue to pay equal shares until the five million is paid or their liability limits are reached.

Contribution by limits is used when other carriers do not have a contribution by equal shares provision. In this instance, Underwriters is not liable for a larger proportion of the loss than the limit of insurance bears in proportion to the total of all applicable coverages. If there are four policies involved of equal limits, then Underwriters is responsible for one quarter portion of the loss. Each company pays their proportion of the loss.

Subrogation – The Underwriters maintain the right of recovery against any person or organization bearing responsibility for the claim/loss, and the insured is required to assist however possible to help secure the Underwriters' rights.

Changes – Any changes to the policy must be endorsed to the policy and signed by an authorized representative of the Underwriters. The knowledge of any agent/broker of an insured's desire to change a policy does not cause a change to be effected.

Assignment – An assignment of the interest in this policy to another person is not valid until the Underwriters have given written consent. If the insured dies during the policy period, the insurance from this policy is applicable to the insured's legal representative while acting as such, and to an individual having temporary custody of the insured's property until a legal representative is appointed.

Cancellation – The policy may be canceled by the named insured by returning the actual policy to the Underwriters or by submission of written notice of cancellation, including the requested cancellation date signed and dated by the named insured, to the Kalmanson agency. The cancellation is on a short rate basis. Cancellations due to non-payment of premium are pro-rated, and no flat cancellations are permitted.

Declaration – The insured agrees that information presented in the application/declaration is true and correct; any material misrepresentation may void this policy.

Stated Limits of Liability, Policy Terms, Policy Period – The maximum limits of liability is the aggregate limit as indicated on the declaration and for which a premium is charged; the policy takes force at 12:01 a.m. standard time and expires at 12:01 a.m. local standard time; and the policy period is for twelve months unless otherwise indicated.

Reinstatement Notice – If a cancellation request has been made or a cancellation notice has been issued, a minimum fee of $500 applies if the policy is to be reinstated.

Contract, Claims-Made, Retro-Active Date, Trigger – The policy and all attachments form the contract of insurance. The policy covers injury and damage that occurs after the retro-active date and for which a claim is made during the policy period. The retro-active date is listed on the declarations page and is the date of inception of the policy. The policy applies to claims made during the policy period for bodily injury and /or property damage for scheduled operations/activity.

Hazards Page- The schedule for the liability exposure to be covered under this policy is attached via the hazards page. One of two coverages may be selected. The first coverage is for a canine to be used as a family pet and covered while on the named insured's designated premises and under direct control of the resident household member or a guest of the household. The name and age of the canine are the information provided in order to identify the animal. The second coverage option is for the scheduled animal to be covered while on or off the named insured's designated premises. The animal must be leashed and muzzled and again in the control of a household member or guest.

Liability coverage is extended to scheduled animals only and is limited to bodily injury or property damage caused by said animal. Any animal the insured does not own, and that is not scheduled on the policy, is not covered. Newly acquired pets, and animals in the care, custody or control of the insured are not covered. Visiting friend's or relative's pets, or pets the insured may be taking care of while someone is on vacation are not covered under this policy. Not covered by this policy are any operations or activity not specifically scheduled and animal mortality. The schedule is specifically designed to provide liability coverage for specifically named canines; these are often dogs that the homeowner's policy won't provide coverage for because of breed or a history of biting or other aggressive behavior.

Liability provisions – The liability limit as stated on the declarations is the most that will be paid for all damages and or injury for any one occurrence during the policy period. No liability coverage is provided automatically; any activity or operation must be specifically scheduled onto the policy for coverage to be available. Repeated or continuous exposure to the same general condition will be considered as one occurrence. The insured's designated premises is the actual premise location the insured or employees occupy in conjunction with the scheduled risk. The premises must be specifically scheduled in order for coverage to apply.