voorhees et al v. ace american insurance company complaint

8/20/2019 VOORHEES et al v. ACE AMERICAN INSURANCE COMPANY complaint

1/38

Service of ProcessTransmittal09/11/2015

CT Log Number 527802630TO: Saverio Rocca, Corporate Counsel

ACE Group436 Walnut StPhiladelphia, PA 19106-3703

RE: Process Served in Wisconsin

FOR: ACE American Insurance Company (Domestic State: PA)

Page 1 of 1 / AP

Information displayed on this transmittal is for CTCorporation's record keeping purposes only and is provided to

the recipient for quick reference. This information does notconstitute a legal opinion as to the nature of action, the

amount of damages, the answer date, or any informationcontained in the documents themselves. Recipient is

responsible for interpreting said documents and for takingappropriate action. Signatures on certified mail receipts

confirm receipt of package only, not contents.

ENCLOSED ARE COPIES OF LEGAL PROCESS RECEIVED BY THE STATUTORY AGENT OF THE ABOVE COMPANY AS FOLLOWS:

TITLE OF ACTION: Daniel Matthew Voorhees, etc. and Broadwater Marine, LTD., Pltfs. vs. ACEAmerican Insurance Company, Dft.

DOCUMENT(S) SERVED: Summons, Complaint, Exhibit(s), Attachment(s)

COURT/AGENCY: Milwaukee County Circuit Court, WICase # 15CV007217

NATURE OF ACTION: Insurance Litigation - Claim for policy benefits

ON WHOM PROCESS WAS SERVED: C T Corporation System, Madison, WI

DATE AND HOUR OF SERVICE: By Process Server on 09/11/2015 at 10:10

JURISDICTION SERVED : Wisconsin

APPEARANCE OR ANSWER DUE: Within 45 days of receipt

ATTORNEY(S) / SENDER(S): Frank R. TerschanTerschan, Steinle, Hodan & Ganzer, Ltd.309 North Water StreetSuite 215Milwaukee, WI 53202414-258-1010

REMARKS: Please note the process server underlined, circled, initialed and/or highlighted the

entity name served prior to receipt by CT.ACTION ITEMS: CT has retained the current log, Retain Date: 09/11/2015, Expected Purge Date:

09/16/2015

Image SOP

Email Notification, Adrienne Logan [email protected]

Email Notification, Marie Morrill [email protected]

Email Notification, Angela Jay [email protected]

SIGNED: C T Corporation SystemADDRESS: 8020 Excelsior Dr Ste 200

Madison, WI 53717-1998TELEPHONE: 608-833-4821

Case 2:15-cv-01193-NJ Filed 10/08/15 Page 1 of 38 Document 1-1


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STATE OF WISCONSIN

IRCUIT COURT

ILWAUKEE COUNTY

15CV 7217

ANIEL MATTHEW VOORHEES abo

WY BROAD WATER, and BROAD WATER

MARINE, LTD.

500 W. Brown Deer Road 101,

Milwaukee, WI 53217,

Plaintiffs,

vs.

ACE AMERICAN INSURANCE COMPANY

436 Walnut Street

P.O. Box 1000

Philadelphia, PA 19 106-3703

do Registered Agent

CT Corporation System

8020 Excelsior Dr Ste 200

Madison, WI 53717

Defendant.

AUTMTI

ATP1

SE F 3 2 15

J U H N o n m n r

I r k o f i rc u i t o u n

Case No.

Case Codes: 30303; 30106

H O N . D A V I D L . B O R O W S K I B R . 1 2

IVIL K

SUMMONS

THE STATE OF WISCONSIN

To each person named above as a defendant:

You are hereby notified that the Plaintiff named above has filed a lawsuit or other

legal action against you. The Complaint, which is attached, states the nature and basis of

the legal action.

Within forty-five (45) days of receiving this Summons, you must respond with a

written answer, as that term is used in Chapter 802 of the Wisconsin Statutes, to the

Complaint. The Court may reject or disregard an answer that does not follow the

requirements of the statutes. The answer must be sent or delivered to:

Milwaukee County Courthouse

901

9th

Ninth Street

Milwaukee WI 53233



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and to Plaintiffs attorney, Frank R. Terschan, whose address is Terschan, Steinle, Hodan

Ganzer, Ltd., 309 North Water Street, Suite

215

Milwaukee, Wisconsin 53202. You

may have an attorney help or represent you.

If you do not provide a proper answer within forty-five (45) days, the Court may

grant judgment against you for the award of money or other legal action requested in the

Complaint, and you may lose your right to object to anything that is or may be incorrect

in the Complaint. A judgment may be enforced as provided by law. A judgment

awarding money may become a lien against any real estate you own now or in the future,

and may also be enforced by garnishment or seizure of property.

Dated at M ilwaukee, Wisconsin this 1

t

day of September, 2015

Terschan, Steinle, Hod an Ganzer, Ltd.

Attorneys for the Plaintiffs

By:

2'.9

f- .

ZL

Frank R. Terschan

State Bar No.: 1016256

P.O. ADDRESS:

309 North Water Street, Suite 215

Milwaukee, WI 53202

(414) 258-1010

2



4/38

STATE OF WISCONSIN

IRCUIT COURT

ILWAUKEE COUNTY

DANIEL MATTHEW VOORHEES abo

MIY BROAD WATER, and BROAD WATER

MARINE, LTD.

500W. Brown Deer Road 101,

Milwaukee, WI 53217,

Plaintiffs,

vs.


436 Walnut Street

P.O. Box 1000

Philadelphia, PA 19106-3703

oRegistered Agent

CT C orporation System

8020 Excelsior Dr Ste 200

Madison, WI 53717

I S C V 1 J O T 2

7

A U T h P M T I T P

0

[SEP03 2015

J U H i v

l e r k

o f i r c u i t o u n

Case No.

Case Codes: 30303; 30106

Defendant.

COMPL INT

COM ES NO W the plaintiffs, Daniel Matthew Voorhees abo M Y Broadw ater and

Broadwater Marine, Ltd., by and through its attorney, Frank R. Terschan, and Terschan,

Steinle, Hodan & Ganzer, Ltd. and as a complaint against the Defendant, ACE American

Insurance Company, allege the following:

PARTIES

1.

laintiff Daniel Matthew Voorhees is the beneficial owner of M/Y

Broadwater. He is a resident of the District of Columbia. For purposes of the present

dispute, he is listed in the applicable insurance policy with a mailing address of:

Broadwater Marine

o

BGC, 500 W Brown D eer Road #101, Milwaukee, WI 53217.



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2.

laimant Broadwater Marine, Ltd. is a Cayman Islands holding company

with a mailing address on the applicable insurance policy

of:

Broadwater Marine

o

BGC, 500 W Brown Deer Road #101, Milwaukee, WI

53217

ACE American Insurance Company ( ACE ) is an insurance company

with a mailing address listed on its insurance policy as: 436 Walnut Street, P.O. Box

1000, Philadelphia, PA 19106-3703. Upon information and belief, ACE is licensed to

and does insurance business in Wisconsin.

JURISDICTION AND VENUE

Pursuant to Wis. Stat. § 801.05, this Court has jurisdiction over ACE

because ACE is a corporation that is engaged in substantial and not isolated activities

within this state, and has sufficient minimum contacts with Wisconsin so as to render the

exercise of jurisdiction by the Wisconsin courts permissible under traditional notions of

fair play and substantial justice.

Venue is proper in this Court pursuant to the venue clause in the

applicable insurance policy, which states that disputes arising under the policy shall be

venued where the policyholder lists its address on the policy declarations page.

GENERAL ALLEGATIONS

This is a dispute over insurance coverage for damages, expenses, and lost

charter income for the yacht M/Y Broadwater.

Plaintiffs purchased from AC E m arine insurance policy number Y MY

Y09 1645 10 (the Policy ), which, among other things, promises to pay for damages to

the yacht, consequential damages, and extra expenses, and to reimburse the owner for lost

2



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charter income. A copy of the Policy, as contained in plaintiffs' files, is attached hereto

as Exhibit A.

In April 2014 Plaintiffs purchased a 1990 163 foot Feadship custom yacht

named M/Y Inevitable (renamed M/Y Broadwater) for 9.5 million.

The yacht underwent an extensive pre-purchase survey and sea trial in

March 2014 in Fort Lauderdale, Florida. No engine or power issues were discovered

during the pre-purchase survey and sea trial.

ACE reviewed the pre-purchase survey prior to writing the Policy. During

underwriting of the Policy, ACE issued a Survey Recommendation Compliance

Certification which required that certain repairs be made to the yacht by September 17,

2014.

The Policy took effect on April 17, 2014.

At the time of purchase, the yacht was moored in Nassau, Bahamas. After

plaintiffs took possession of the yacht, it was sailed to Fort Lauderdale, Florida. During

the crossing, the yacht experienced sudden engine and power system failure that resulted

in significant damage to the yacht. Subsequent investigation revealed extensive damage

to the yacht's generators, exhaust, and power systems, rendering the vessel inoperable.

Plaintiffs were under contract to charter the yacht to Millennium Charters

in West Palm Beach, Florida. As a result of the damage, the charter contract, worth

450,000, was cancelled.

Extensive repairs of the yacht were undertaken over the subsequent year

at a total cost of nearly 1 million.

£



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Plaintiffs provided timely notice to ACE of the damage to the yacht. In

August 2014, ACE disclaimed any obligation to pay for the damage to the yacht on the

basis that the damage pre-existed the ACE policy period. ACE took this position despite

the fact that the yacht was extensively surveyed prior to ACE underwriting the coverage

and ACE signed off on the survey. No relevant pre-existing damage was noted on the

survey that ACE approved or on ACE s Survey Recommendation Compliance

Certification

ACE subsequently revoked its disclaimer in September 2014 and provided

plaintiffs with a Proof of Loss form to complete. Plaintiffs timely completed the Proof of

Loss form

In October 2014, ACE requested additional damages documentation,

access to the yacht for inspection purposes, and stated that it wished to conduct an

examination under oath.

In November 2014, while at Bahia Mar Marina in Fort Lauderdale,

Florida, the yacht suffered additional damage to its hull and propulsion system that

necessitated additional repairs.

In November 2014, ACE hired Bryan Emond of SEA, Ltd. to inspect the

yacht.

In November 2014, plaintiffs provided extensive documentary evidence to

ACE in response to ACE s requests for information.

In December 2014, ACE requested additional information regarding the

loss. Additional information was provided to ACE in response to the request.



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22.

n January

2015

ACE requested more information regarding the loss, and

also requested a new, more detailed Proof of Loss.

In a March 16, 2015 letter, ACE claims adjuster Stuart Bamhardt

requested additional information, and stated that ACE's preliminary analysis indicated

no relation between the April 2014 incident and the costs of repair. Mr. Barnhardt's

letter stated that [o]ur investigation remains ongoing and we will be happy to consider

any further documentation substantiating these charges.

In May 2015, plaintiffs submitted a revised and more detailed Proof of

Loss to ACE. Plaintiffs also requested that ACE follow the dispute resolution procedure

in the Policy, including arbitration, to resolve any disputed portions of the claim.

In May 2015, plaintiffs entered into a charter agreement to charter a

replacement yacht due to the ongoing repairs to MIY Broadwater. The cost for the

replacement yacht charter was approximately $183,000.

In a June 9, 2015 letter, ACE adjuster Stuart Barnhardt stated that the

revised Proof of Loss was rejected without prejudice due to insufficient detail.

On June 23, 2015, plaintiffs submitted a third Proof of Loss to ACE.

Also on June 23, 2015, plaintiffs received a copy of a letter dated June 22,

2015 from ACE's Stuart Bamhardt stating that his investigation revealed that the amount

of damage caused to the yacht as a result of the November 2014 incident at Bahia Mar

Marina in Fort Lauderdale fell below the deductible.

On June 24, 2015, ACE remitted to plaintiffs a check in the amount of

$800, representing what ACE asserted it owed on the claim.

On June 24, 2015, plaintiffs served ACE with an Arbitration Demand.



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On July 31, 2015, ACE s counsel wrote a letter stating that ACE would

not participate in arbitration because the request for arbitration was untimely under the

policy, citing the Policy s one-year suit limitation clause. In this letter, ACE also rejected

plaintiffs third Proof of Loss and invited plaintiffs to correct deficiencies in the Proof of

Loss and resubmit another revised Proof of Loss.

CL IMS FOR RELIEF

COUNT I - BREACH OF CONTRACT

32.

he preceding paragraphs are hereby incorporated and realleged as if fully

stated herein.

The Policy is a valid and enforceable contract of insurance, for which all

premiums have been paid.

Plaintiffs have performed all of their obligations under the Policy, and any

and all conditions precedent to plaintiffs rights under that Policy have been satisfied,

waived, or defendant is equitably estopped from relying on them.

Pursuant to the terms and conditions of the Policy, ACE has breached its

obligation to pay plaintiffs for losses they suffered as a result of damage to and loss of

use of

M Y

Broadwater.

As a direct and proximate result of ACE s breach, plaintiffs have been

deprived the benefits of the insurance coverage for which they paid substantial premiums.

COUNT II— EQUIT BLE ESTOPPEL

The preceding paragraphs are hereby incorporated and realleged as if fully

stated herein.

r o



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ACE is equitably estopped from relying on the one-year suit limitation

provision in the Policy because ACE induced plaintiffs to withhold initiating suit or

arbitration through its actions and communications with plaintiffs.

Plaintiffs reasonably relied to their detriment on ACE s promises to

investigate the claim and consider revised Proofs of Loss.

After the inducement for delay ceased, plaintiffs did not unreasonably

delay in attempting to bring an arbitration proceeding and then when A CE refused to

participate in arbitration, this action.

Due to ACE s fraudulent and inequitable conduct, ACE should be

estopped from asserting a statute of limitations defense.

COUNT III - BREACH OF GOOD FAITH AND FAIR DEALING

The preceding paragraphs are hereby incorporated and realleged as if fully

stated herein.

The Policy is a valid and enforceable contract of insurance, for which all

premiums have been paid.

Plaintiffs have performed all of their obligations under the Policy, and any

and all conditions precedent to plaintiffs rights under that Policy have been satisfied or

waived.

Because of the fiduciary relationship between an insurer and its insured,

which arises from the duty of good faith and fair dealing implied in every contract,

plaintiffs had a right to expect to be treated fairly and to have legitimate claims paid

promptly.

7



11/38

46.

CE acted in bad faith towards plaintiffs by stringing plaintiffs along and

by conducting its claim investigation in such a way as to prevent it from learning the true

facts upon which the plaintiffs claim is based.

ACE knew or should have known that it had no reasonable basis to deny

plaintiffs claim, and its improper investigation and repeated delay and rejection of

plaintiffs Proofs of Loss reflect an absence of honest, intelligent action and consideration

of its insureds claim and reckless disregard for its insureds rights under the Policy.

Among other things, ACE s bad faith claims handling included the

following violations of Wis. Admin. Code Sec. INS 6.11(3):

Failure to promptly acknowledge pertinent communications with respect to claims

arising under insurance policies;

Failure to initiate and conclude a claims investigation with all reasonable

dispatch;

Failure to promptly provide necessary claims forms, instructions and reasonable

assistance to insureds and claimants under its insurance policies;

Failure to attempt in good faith to effectuate fair and equitable settlement of

claims submitted in which liability has become reasonably clear;

Failure, where appropriate, to make use of arbitration procedures authorized or

permitted under any insurance policy;

Failure to affirm or deny coverage of claims within a reasonable time after proof

of loss has been completed; and

Knowingly misrepresenting to claimants pertinent facts or policy provisions

relating to coverages involved.

8



12/38

49.

s a direct and proximate result of ACE's bad faith conduct, plaintiffs

have sustained and incurred, and are continuing to incur, substantial damages and

expenses.

50.

s a direct, foreseeable and proximate result of ACE' s bad faith conduct

and breach of its obligations to plaintiffs, plaintiffs are entitled to recover the full amount

of their damages, including all incidental, consequential and compensable damages,

along with pre and post-judgment interest and attorneys' fees.

RELIEF REQUESTED

WHEREFORE, based upon the forgoing allegations, plaintiffs request that this

Court enter judgment for damages in favor of plaintiffs and against defendant, in an

amount to be determined at trial, but believed to be in excess of 1 million, and award

plaintiffs their reasonable attorneys' fees and costs, along with pre and post-judgment

interest, and any other and further relief the Court deems just, equitable, and proper.

JURY TRI L DEM NDED

Plaintiffs respectfully request a jury trial on all claims, as well as on each defense

which may be raised by defendant, that are triable to a jury.

Dated at Milwaukee, Wisconsin this

1st

day of September 2015

Terschan, Steinle, Hodan & Ganzer, Ltd.

Attorneys for the Plaintiffs

BY J

Frank R. Terschan

State Bar No.: 1016256

P.O. ADDRESS:

309 North Water Street, Suite 215

Milwaukee, WI 53202

(414) 258-1010



13/38

lite Yacht

olicy

Policy Number: YMY Y09164510

ace recreational

marine insurance

NEW

Agency Code, Name & A ddress

ommission

700581

0%

BRUCE GENDELMAN COMPANY INC

500 W. BROWN DEER ROAD

SUITE 101

MILWAUKEE, WI 53217-1627

This is your Elite Yacht

Policy's Declarations Page. Please read carefully. It gives you important facts about your coverage.

The Company Providing This Insurance

CE ANERICAN INSURANCE COMPANY

436 Walnut Street, P.O.

ox

1000

Phila, PA 19106-3703

The Named Insured Under This Policy:

Broadwater Marine

Address:

801 Pennsylvania Ave, 700

Washington, DC 20006

The Vessel Covered By This Policy

AME)

'INEVITABLE'

(YEAR BUILT)

LENGTH)

MAKE)

(MODEL)

(DOC. OR HULL IDENT. NO)

1990

63'

eadship

Custom

IMO 1002782

This policy will take effect on

/17/2014

and end on

/17/2015

It will begin and end at 12:01 A.M. standard time,

at the place where this policy was issued.

In return for the Total Premium, listed below, we agree to provide the insurance coverages for which a premium is shown in the c

below.

COVERAGE PROVIDED

MOUNT OF

DEDUCTIBLE

PARTS COVERAGES

INSURANCE

AMOUNT

PREMIUM

A

roperty Dam age

,500,000

7,500

2,015

Windstorm Deductible

.

ot Applicable

Com mercial Towing & Assistance

$

00, 000

$

$

B

iability Coverage

0,000,000

,700

C

edical Payments

$

00 000

$

$

D

ninsured Boater

,000,000

E

&HCA

$ Statutory Limits

(included in B if

F railer

ot Covered

G

ersonal Property

$

00 000

$

$

Premium B earing Endt(s): See Attached Endorsements

,150

TOTA L PREM IU M

62,865

LIMITS ON USE

See Navigation Warranty

MA-7W74

EN DORSEM EN TS:

ALL21101 CC-1E15 M.A-1797lb MA-4656b MA-7W74a MA-8301g MA-9S87a MA-9S88

M A - 9 S 8 9 a

Lay-up W arranty

t is warranted the vessel will be laid up for part of the y ear, the dates are:

From noon:

o noon:

LOSS PAYEE:

e will make payments for Part A: Property Damage losses to the Assured and

M A - 7 N 3 9 k 0 7 / 1 1 )

RODUCER COPY

/\

XHIBIT



14/38

TRADE OR ECONOMIC SANCTIONS ENDORSEMENT

Named Insured

roadwater Marine

Endorsement Number

Policy Symbol

Policy Number

Policy Period

Effective Date of Endorsement

Y Y

Y09164510

4 17 2014 TO 4 17 2015

4 17 2014

Issued By Name of Insurance Company)


Insert the policy number The remainder of the information is to be completed only when this endorsemen t is issued subsequent to the preparation of the policy

THIS ENDORSEMENT CHANGES THE POLICY PLEASE R1AD IT CAREFULLY

This insurance does not apply to the extent that trade or economic sanctions or other laws or regulations prohibit us from

providing insurance, including, but not limited to, the payment of claims. All other terms and conditions of the policy remai

unchanged.

ALL-21101 1 1/06) Ptd. In U.S.A.

age 1 of



15/38

Named Insured

Broadwater Marine

Endorsement Number

Policy Symbol

Policy Number

Policy Period


YMY

Y09164510

4/17/2014 TO 4/17/2015

4/17/2014


ACE ANERICAN INSURANCE COMPANY

Insert the policy number The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation or the policy

ELITE - DELETION OF TERRORISM EXCLUSION

Notwithstanding anything to the contrary in the Policy to which this endorsement is

attached and in consideration of the premium charged it is understood and agreed

that the Policy is amended by the following:

The Policy at GENERAL CONDITIONS AND EXCLUSIONS paragraph TERRORISM EXCLUSION is

deleted in its entirety.

ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED.

CCIEI5 MS-6084



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FIRE EXTINGUISHING SYSTEM AGREEMENT

Named Insured

Broadwater Marine

Endorsement Number

Vessel 1

Policy Symbol

Policy Number

Policy Period


Y Y

Y09164510

4 17 2014 TO 4 17 2015

4 17 2014



The above is required to be completed only when this endorsement is issued subsequent to the preparation of the policy.

You agree that you r yacht is equipped w ith a built-in and automatic system of fire extinguishing apparatus, properly installed in the

engine room and maintained in good and efficient working order.

ALL OTHER TERMS CONDITIONS AND VALUATIONS REMAINING UNCHANGED

MA 4656b Ptd. in U.S.A.



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NAVIGATION WARRANTY

Named Insured

Broadwater Marine

Endorsement Number

Vessel 1

Policy Symbol

Policy Number

Policy Period

Effect ive D ate of End orsement

Y N Y

1Y09164510

4 17 2014 TO 4 17 2015

4 17 2014



Insert the policy number. The remainder of the informat ion is to be comple ted only w hen this endorsement is issued subsequent to toe preparanon or inc

poiiiy

Warranted conf ined to :

Atlantic Gulf and inland waters of North America and Central America and

including the waters of the Caribbean Sea within the following parameters:

not North of Halifax Nova Scotia;

not South of 8

degrees North Latitude;

not East of

58

degrees West Longitude;

excluding Panama Canal transit; and

the coastal waters of Cuba Haiti Nicaragua Colombia and Venezuela.

Navigation is extended also to include transatlantic crossing on its own bottom

navigating coastwise and inland tributary waters of the Mediterranean Sea not

east of

4

degrees East Longitude and excluding the coastal waters of Tunisia

Algeria Libya and Egypt.

A L L O T H E R T E R M S A N D C O N D I TI O N S R E M A I N U N C H A N G E D

MA -7W74a 5/97) P td. in U.S.A.



18/38

CAPTAIN AND CREW LIMITATION ENDORSEMENT

Named Insured

Broadwater Marine

Endorsement Number

Vessel

o l i c y

Symbol

Policy Number

Policy Period


Y Y

Y 916451

4 17 2014 TO 4 17 2015

4 17 2014



Insert the pol icy number. The remainder of the informat ion is to be com pleted only when this endorsement i s i ssued sub sequent to the preparat ion of the pol icy.

In consideration of the additional premium of 3,150, and subject to the terms and conditions contained herein, it i

warranted that there shall not be more than

(10)

crew member(s), including the captain, employed aboard the

Insure

Vessel

at any one time. The maximum limit of liability for coverage applicable to the Jones Act or under General Maritim

Law, per each accident or

Occurrence

is

10,000,000.,

which shall be included within and shall not increase the

AMOUNT OF INSURANCE

applicable to

PART B: LIABILITY COVERAGE

as shown on the Declarations Page or a

modified by endorsement attached to the Policy, if any.

It is further understood and agreed that in the event additional crew are to be employed, you shall give prior notice to thi

Company and pay such additional premium as is required. If

you

fail to give such prior notice and at the time of loss i

respects to crew there is a greater number employed than that which is stated above, the insurance shall respond only i

the proportion that the stated number of crew bears to the number on board at the time of the accident.

ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED.

MA-8301g (01/12)



19/38

ADDENDUM TO

AMERICAN INSTITUTE HULL WAR RISKS

AND STRIKES CLAUSES— DECEMBER 1 1977

APRIL 1,1984)

Named Insured

Broadwater Marine

Endorsement Number

Vessel

Policy Symbol

Policy Number

Policy Period


YMY

Y 916451 4 17 2014 TO 4 17 2015

4 17 2014

Issued By (Name of Insurance Company)

CE MERIC N INSUR NCE COMP NY

Insert the policy number. The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy.

It is understood and agreed that the American Institute Hull War Risks and Strikes Clauset of December 1, 1977, for attachment to American Institute Hull Clauses

(June 2, 1977), and to which this Addendum is attached are amended as follows:

For the purpose of this Addendum only, line 241 of the American Institute Hull clauses (June 2, 1977) - EXCLUSION (a) - shall be deemed amended b

adding confiscation or expropriation.

In addition to the risks enumerated in the above described War Risks and Strikes Clauses, the following is added; 7. Confiscation or expropriation.

In the event that the Vessel shall have been the subject of capture, seizure, arrest, restraint, detainment, confiscation or expropriation, and the Assured, by

reason thereof, has lost the free use and disposal of the Vessel for a continuous period of twelve (12) months (even though condemnation has not occurred)

than for the purposes of ascertaining whether the Vessel is a constructive Total Loss, the Assured shall be deemed to have been deprived of the possession o

the Vessel without any likelihood of recovety.

Restraint as used in this paragraph 3 shall be deemed to include the inability of the Vessel to sail from any port or place to the high seas because of closur

of the connecting waterway to all vessels of similar size or draft due to blockage of such waterway cau sed by hostilities or warlike operations.

Clause (1) of the EXCLUSIONS shall be amended to read as follows: 'Capture, seizure, arrest, restraint, detainment, confiscation or expropriation by the

Government of the United States or of the country in which the Vessel is owned or registered.

The Warranty at line 42 shall be amended to read: Warranted not to abandon in case of capture, seizure, arrest, restraint, detainment, confiscation o

expropriation until after condemnation of the property insured, or, in circumstances set forth in 3. above, after twelve (12) months, whichever first occurs.

The period of fourteen (14) days provided for in subparagraph D of the AUTOMATIC TERMrNATION AND CANCELLATION Clauses, shall b

amended to seven (7) days wherever appearing therein.

ALL OTHER TERJ1S AND CONDITIONS REMAIN UNCHANGED

Authorized Agent

MA-9S89a (12/03)



20/38

Named Insured

Broadwater Marine

Endorsement Number

Vessel 1

Policy Symbol

Policy Number

Policy Period


YMY

Y09164510

4/17/2014 TO 4/17/2015

4/17/2014

Issued By Name of Insurance Comp any)


Insert the policy number. The remainder of the information is to be com pleted only when this end orsement is issued subsequen t to the preparation of the policy.

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

Notwithstanding anything to the contrary in the Policy to which this endorsement is

attached and in consideration of the premium charged it is understood and agreed by

the named insured and the Insurer that the Policy is amended by the following:

The Policy at PART A: PROPERTY DAMAGE COVERAGE paragraph DEDUCTIBLE WAIVER is

deleted in its entirety.

ALL OTHER TERMS AND CONDITIONS REMAIN

UNCH NGED

CCIEI5 r4S 6112



21/38

Named Insured

Broadwater Marine

Endorsement Number

essel

Policy Symbol

Policy Number

o l i c y Period


YNY

Y09164510

4/17/2014 TO 4/17/2015

4/17/2014



Insert the policy number The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation

of

the policy

MACHINERY DAMAGE DEPRECIATION ENDORSEMENT

This endorsement applies to an Insured V essel only if shown on the Declarations Page

or the applicable Scheduled Vessel Endorsement for that Insured Vessel.

It is understood and agreed your ACE RECREATIONAL MARINE INSURANCE POLICY is amended

as follows:

The following provision is added to PART A: PROPERTY DAMAGE COVERAGE, PROPERTY

SUBJECT TO DEPRECIATION:

d. machinery inside the Insured Vessel which is over ten 10) years old.

ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED.

CCIEI5 I4S 29930



22/38

AMERICAN INSTITUTE

Hull War Risks and Strikes Clauses

including Automatic Termination and Cancellation Provisions)

December 1 1977

Named Insured

Broadwater Marine

Endorsement Number

Vessel 1

o l i c y

Symbol

Policy Number

Policy Period


Y Y

Y09164510

4 17 2014 TO 4 17 2015

4 17 2014



Insert the policy number. The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy.

Effective on the date shown above and in consideration of a premium in the amount of$

this insurance, subject to the exclusions set forth herein, covers only those risks which would be covered by the attached Policy (including collision liability) in the

absence of the WAR, STRIKES AND RELATED EXCLUSIONS clause contained therein but which are excluded thereby and which risks shall be construed as als

including:

I.

ny mine, bomb or torpedo not carried as cargo on board the Vessel:

Any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter;

Civil war, revolution, rebellion, insurrection, or civil strife arising therefrom;

Strikes, lockouts, political or labor disturbances, civil commotions, riots, martial law, militaty or usurped power;

Malicious acts or vandalism to the extent only that such risks are not covered by the attached Policy;

Hostilities or warlike operations (whether there be a declaration of war or not) but this paragraph (6) shall not include collision or contact with aircraf

rockets or similar missiles, or with any fixed or floating object, or stranding, heavy weather, fire or explosion unless caused directly by a hostile act by o

against a belligerent power which act is independent of the nature of the voyage or service which the Vessel concerned or, in the case of a collision, an

other vessel involved therein, is performing. As used herein, power includes any authority maintaining naval, military or air forces in association with

power.

EXCLUSIONS

This insurance does not cover any loss, damage or expense caused by, resulting from, or incurred as a consequence of.

:

a.

Any hostile detonation of any weapon of war described above in paragraph (2);

Outbreak of war (whether there be a declaration of war or not) between any of the following countries: United States of America, United Kingdom, Franc

the Union of Soviet Socialist Republics or the People's Republic of China;

C.

elay or demurrage;

Requisition or preemption;

Arrest, restraint or detainment under customs or quarantine regulations and similar arrests, restraints or de- tainments not arising from actual or impendin

hostilities;

Capture, seizure, arrest, restraint, detainment, or confiscation by the Government of the United States or of the country in which the Vessel is owned o

registered.

HELD COVERED AND OTHER PROVISIONS

Th e held covered clause appearing under the heading ADVE NTU RE in the attached Policy is deleted and the following clause substituted therefore:

Subject to the provisions of the Automatic Termination and Cancellation Clauses below, held covered in the event of any breach of conditions as t

loading or discharging of cargo at sea, or towage or salvage activities provided (a) notice is given to the Underwriters immediately following receipt o

knowledge thereof by the Assured, and (b) any amended terms of cover and any additional premium required by the Underwriters are agreed to by th

Assured.

If at the natural expiry time of this insurance the Vessel is at sea, this insurance will be extended, provided previous notice be given to the Underwriters, for an

additional premium at a rate to be named by the Underwriters, until midnight Local Time of the day on which the Vessel enters the next port to which she proceeds an

for 24 hours thereafter, but in no event shall such extension affect or postpone the operation of the Automatic Termination and Cancellation Clauses below.

Warranted not to abando n in case of capture, seizure or detention, until after condemna tion of the property insured.

The provisions of the attached Policy with respect to constructive Total Loss shall apply only to claims arising from physical damage to the Vessel.

(Continued on next page)

MA-9587a (12/03)

age 1 of



23/38

(Continued)

UTOM T IC TERMIN TION ND

CANCELLATION CLAUSES

This insurance and any extension thereof, unless sooner terminated by the provisions of section B or C, shall terminate automatically upon and simultaneousl

with the occurrence of any hostile detonation of any nuclear weapon of war as defined above, wheresoever or whensoever such detonation may occur and whethe

or not the Vessel may be involved.

This insurance and any extension thereof, unless sooner terminated by the provisions of section A or, C, shall terminate automatically upon and simultaneousl

with the outbreak of war, whether there be a declaration of war or not, between any of the following countries: United States of America, United Kingdom

France, the Union of Soviet Socialist Re- publics or the Peo ple s Republic of China.

This insurance and any extension thereof, unless sooner terminated by section A or B, shall terminate automatically if and when the Vessel is requisitioned, eith

for title or use.

This insurance and any extension thereof may be cancelled at any time at the Assured's request, or by Underwriters upon 14 days' written notice being given to the

Assured, but in no event shall such cancellation affect or postpone the operation of the provisions of sections A, B or C. Written or telegraphic notice sent to th

Assured at his (its) last known address shall constitute a complete notice of cancellation and such notice mailed or telegraphed to the said Assured, care of th

broker who negotiated this insurance, shall have the same effect as if sent to the said Assured direct The mailing of notice as aforesaid shall be sufficient proof o

notice and the effective date and hour of cancellation shall be 14 days from midnight Local Time of the day on which such notice was mailed or telegraphed a

aforesaid. Underwriters agree, however, to reinstate this insurance subject to agreement between Underwriters and the Assured prior to the effective date and hou

of such cancellation as to new rate of premium and/or conditions and/or warranties.

RETURNS OF PREMIUM

The RETURNS OF PREMIUM clause of the attached Policy is deleted and the following substituted therefore:

' In the event of an automatic termination or cancellation of this insurance under the provisions of sections A, B, C or D above, or if the Vessel be sol

pro rata net return of premium will be payable to the Assured, provided always that a Total Loss of the Vessel has not occurred during the currency o

this Policy. In no other event shall there be any return of premium.

THIS INSURANCE SHALL NOT BECOME EFFECTIVE IF, PRIOR TO THE INTENDED TIME OF ITS ATFACHMENT, THERE HAS OCCURRED ANY

EVENT WHICH WOULD HAVE AUTOMATICALLY TERMINATED THIS INSURANCE UNDER THE PROVISIONS OF SECTIONS A, B, OR C HEREO

HAD THIS INSURANCE ATTACHED PRIOR TO SUCH OCCURRENCE.

ALL OTHER TERMS CONDITIONS AND VALUATIONS REMAINING UNCHANGED

Authorized Agent

MA-9S87a (12/03)

age 2 of



24/38

AMERICAN HULL INSTITUTE SYNDICATE

WAR RISK PROTECTION & INDEMNITY CLAUSES (1/18/70)

Named Insured

Broadwater Marine

Endorsement Number

Vessel 3

o l i c y Symbol

Policy Number

Policy Period


Y Y

Y09164510

4 17 2014 TO 4 17 2015

4 17 2014


CE MERIC N INSUR NCE COMP NY

Insert the policy number The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparat ion of the policy

This insurance is also to cover the liability of the assured for Protection and Indemnity Risks excluded from Marine Protection and

Indemnity Policies commonly issued by stock insurance companies in the United States by the following or a substantially simila

F.C. & S. Clause:

Notwithstanding anything to the contrary contained in this policy, no liability attaches to the company, directly or indirectly, for o

in respect of any loss, damage or expense sustained by reason of any taking of the vessel by requisition or otherwise, civil war

revolution, rebellion, or insurrection, or civil strife arising therefrom, capture, seizure, arrest, restraint or detainment, or th

consequences thereof or of any attempt thereat; or sustained in consequence of military, naval or air action by force of arms

including mines and torpedoes or other missiles or engines of war, whether of enemy or friendly origin, or sustained in consequence

of placing the vessel in jeopardy as an act or measure of war taken in the actual process of a military engagement, includin

embarking or disembarking troops or material of war in the immediate zone of such engagement; and any such loss, damage an

expense shall be excluded from this policy without regard to whether the Assured's liability therefor is based on negligence o

otherwise, and whether before or after a declaration of war.

This insurance includes liability of the assured arising out of strikes, riots and civil commotions and for contractual repatriation expenses

of any member of the crew as a result of perils excluded by the aforesaid F.C.&S. Clause.

The Underwriters agree to accept the same percentage interest under these clauses as accepted under the Hull War Risks and Strikes

Clauses.

The liability of the Underwriters under these clauses in respect of any one accident or series of accidents arising out of the same casualty

shall be limited to the Amount Insured Hereunder.

Claims for which the Underwriters shall be liable under these clauses shall not be subject to any deduction.

This Protection and Indemnity Insurance shall terminate automatically at the same time as the insurance afforded by the Hull War Risk

and Strikes Clauses and upon the terms and conditions contained in the Automatic Termination and Cancellation provisions of said

Clauses.

Notwithstanding the provisions of Clause F, in the event of loss or shipwreèk of the vessel from any cause prior to the natural expiry

time or automatic termination of this policy, this insurance shall continue to cover the liability of the assured to the crew of the insured

vessel, subject to its terms and conditions and at an additional premium if so required by Underwriters, until the crew shall be either

discharged or landed at a port or place to which the owners or charterers are obliged to bring them.

Not withstanding any of the foregoing provisions all liabilities covered by the Second Seamen's form of policy are excluded from thi

insurance.

LL OTHER TERMS ND CONDITIONS REM IN UNCH NGED

Authorized Agent

MA-9S88(1170) Ptd. in U.S.A.



25/38

Policy hange

~

ce recre tion l

m rine insur nce

POLICY

CII NGZ

Agency Code, Name & Address

ommission

700581

0%

BRUCE GENDELM M 4 CO M PANY

INC

500 W.

B R O W N

DEER

ROAD

SUITE 101

M I LW A U K E E , W I

53217-1627

Pol icy Number: YM Y 109164510

Policy Term: 4/1

7 /2014 To

4

/

17/2015

Effective Date of Change: 7/10/20 14

This is your Amended D eclarations Page. Please review Policy Chan ge Summary M A3 857 for a description of change(s).

The Company Providing This Insurance

ACE A

M E R I C A N IN 3 U R A N E C O M P A NY

436 Walnut Street,

P.O.

Box 1000

Phjla, PA 19106-3703

The

Named Insured

U n d e r T h i s P o l i c y

ME)

Broadwater Marine

00

BGC

Address:

00 W Brown Deer Road. 101

Milwaukee, WI 53217

The V essel Covered By This Policy

' I N E V I T A B L E '

(YEAR DUIL I) (LENGTh)

MAKE)

MODEL)

DOC. OR

H U L L IDENT. NO)

1990

63'

eadahip

ustom

M O

1002782

C O V E R A G E

PROVIDED

AMOUNT OF

P RTS

COVER CES

INSUR NCE

A

Property Damage

$

,500,000

Windstorm Deductible

Comm ercial Towing & Assistance

00,000

B

LiabilityCoverage

$

0,000,000

C

M edical Payments

$ 00,000

D

U n i n s u r e d B o a t e r

,000,000

E

L 1 - I C A

$ Statutory Limits

F

Trailer

$

ot Covered

U

Personal Property

$

00

00

Premium B earing E ndt(s): See Attached E ndorsements

DEDUCTIBLE

NEW NNU LIZED

M OU N T

PREMIUM

$ 47,500

52,015

285,000

0

$

0

0

$

0

$

7,700

$

0

0

$

0

0

$

$

(included in B if any

$

S

$

0

0

3,150

NEW TOTAL ANNUALIZED

PREMIUM t

LIMITS ON USE: See

Navigation Warranty MA-7W74

ENDORSEMENTS: ALL21101 CC-1E15 MA-17971b MA-4656b MA-7W74a MA-8301g MA-9S87a MA-9S88

M A-9S 8 9 a

Lay-up Warranty

-

t is warranted th e vessel will be laid up for part of the year, the dates are:

From noon: o noon:

L O S S P A Y E E :

e will make payments for Part A: Property D amage losses to the Assured and

MA-34186 (01/12)

RO DUCER CO PY

3



26/38

Policy hange Sum mary

ace recrealiona

marine insuranc

Policy Num ber YMY

Y09164510

Policy Term:

4/17/2014 TO 4/17/2015

Effective Date Of Change:

/10/2014

NEW

A g e n c y C o d e N a m e

& Address ormiasion

700581

0%

BRUCE GENDEIWN COMPANY INC

500 W. BROWN DEER ROAD

SUITE 101

MILWAUKEE, WI 53217-1627

This is your Policy Change Summary page. Please read carefully. It reflects recent policy change activity to your policy.

The Named Insured Under This Policy:

N A M E )

roadwater Marine

o

GC

Address:

00 W Brown bee r Road 101

Milwaukee , WI 53217

Description of hange

t is

here by unders tood and agree d the insure d's

ddress has been amended to:

d O

BGC

500 W Brown Deer Road, 101

Milwaukee, WI 53217

All other ter ms and conditions remain unchanged.

Premium Summary By Vessel

Revised premium amounts are displayed by vessel when the policy change s) described above have resulted in an additional or return

premium.

Premium Change Amount

Total Premium Change Amount

MA-3857h 06/12)

RODUCER COPY

3 age I of I



27/38

O

ce recre tion l

m rine insur nce

ELITE YACHT

POLICY

QUI K REFEREN E

AGREEMENT AND DEFINITIONS

Insuring Agreement...............................................................1

De finit ion s ...... . . . . . .. . . . . . . . . . . .. . . . . . . . . . . .. . . . . . . . . . . . .. . . . . . . . . . . .. . . . . . . . . . . . .. . .1

PART A PROPERTY DAMAGE COVERAGE

Peri ls Insured Against...........................................................2

Va luation ...............................................................................2

Overland Transport...............................................................2

Exclusions.............................................................................2

Equipment on Shore....... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

Bottom Inspect ion Cov erage . . . . .. . . .. . . . .. . . . .. . . .. . . . .. . . . .. . . .. . . . .. . . . .3

Deductible Amount...............................................................3

Deductible Waiver.................................................................3

Deductible Free Items...........................................................3

Loss Settlement....................................................................3

Property Subject To Depreciation ........................................3

Commerc ial Towing and Ass is tance Coverage . . . . . . . . . . . . . . . . . . . .3

ADDITIONAL PROPERTY COVERAGE

Precautionary Measures ......................................................4

Protec t ion A gainst L oss and Salvag e . . . . . . . .. . . . .. . . . . .. . . . .. . . . . .. . .4

Unsc hedu led Fine Ar ts Cov erage.. . . . . .. . . .. . . . .. . . . .. . . . .. . . . .. . . . .. . . . .4

Firearms Coverage ...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Mo peds , Mo torb i kes Mo torcyc les Cove rage . . .. . .. . .. . .. . .. . ..4

Passport And Proof Of Ident i f icat ion Coverage.. . . . . . . . . . . . . . . . . .4

Living Expense After Loss ...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Loss of Cha rter Inco me Co verage.. . . . . . .. . . . .. . . . .. . . . .. . . .. . . .. . . . .. . . .4

Re nta l Re im bursem ent Cov erage.. . . . . .. . . . .. . . .. . . . .. . . .. . . . .. . . .. . . . .. .5

PART B LIABILITY COVERAGE


Exclusions .................. ........................................................... 5

Lim its of Liabi l i ty ...................................................................5

Operating Other Vessels.......................................................5

Marina As Addit ional Insured ...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

Mar ine Env i ronmen ta l Dam age F ines and P ena l t ies

Coverage..............................................................................5

Search Rescue /Em ergency Se rv i ces Cove rage .. . .. . .. . .. . ..5

PART C MEDICAL PAYMENTS COVERAGE


E x c l u s i o n s

............................................................. 6

Loss Settlement....................................................................6

Me dica l P aym ents Proo f O f Lo ss.. . . . .. . . . .. . . . .. . . . .. . . . .. . . .. . . . .. . . . ..6

Additional Requirements.......................................................6

Ad m ission Of Liab ility ..... . . . . . .. . . . . . .. . . . . . . .. . . . . . .. . . . . . . .. . . . . . .. . . . . . . .. . . . 6

PART D UNINSUR ED BOATER COVERAGE


Exclusions.............................................................................6

Loss Settlement....................................................................6

PART E FEDERAL LONGSHORE AND HARBOR

WORKERS COMPENSATION

INSURANCE

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

M A- 1 7 9 7 1 b ( 0 1 / 1 3 )

PART F VESSEL TRAILER COVERAGE

Peri ls Insure d A gains t...........................................................7

Exc lusion s....... . . . . . . . .. . . . . . . . . . . .. . . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . . .. . . . . . . . . . . .. . .

7

Lo ss Settlem ent....................................................................

PART G PERSONAL PROPERTY COVERAGE

Perils Insured Against...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

Add i t iona l Persona l P roperty Coverage For Pa id Crew

.......

7

Exc lusio ns....... . . . . . . . . . . . . . .. . . . . . . . . . . .. . . . . . . . . . . .. . . . . . . . . . . .. . . . . . . . . . . .. . . . . . . .

7

Lo ss Se ttleme nt....................................................................

7

GENERAL CONDITIONS AND EXCLUSIONS

Captain And Crew Warranty ................................................

8

Boat Show and Demonstration ...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

...

8

Broad ening Co verag e ....... . . . . .. . . . . .. . . . . .. . . . . . .. . . . . .. . . . . . . .. . . . . .. . . . . .. .

8

Ch an ges in Po licy ...... . . .. . . . . . . . .. . . . . . . . . .. . . . . . . . .. . . . . . . . . .. . . . . . . . . .. . . . . . . .

8

C ho i c e o f L a w

Conformity to State Law ............................

8

Po licy Pe riod ...... . . .. . . . . . . . .. . . . . . . . .. . . . . . . . .. . . . . . . . .. . . . . . . . . .. . . . . . . . .. . . . . . . . .

8

P o l ic y P r e m i u m a n d Re n e w a l

............................................

8

Ca nce lling th e P olicy ...... . . . . .. . . . . . . . . . .. . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . .

8

Re tu rn Premiums

................................................................

8

Insu red and Non-Ow ned Vesse l Ass i s tance and D i s tress

Coverage.............................................................................

8

Towing Other Vesse ls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

Private Pleasure Use Only ...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

Oc casio nal Ch arter ..... . . . .. . . . . . . . .. . . . . . . . .. . . . . . . . . .. . . . . . . . .. . . . . . . . .. . . . . . . .

8

L imi ts On Use ......................................................................

9

W ar, Con f iscat ion and Con taminat ion.. . . . .. . . . .. . . . .. . . .. . . . .. . . . .. . . .

9

Terro rism Exc lusion ...... . . .. . . . . . . . .. . . . . . . . . .. . . . . . . . .. . . . . . . . .. . . . . . . . . .. . . . . .

9

Con cealm ent, M isrepresentat ion o r Frau d . . . . . . .. . . .. . . . .. . . . .. . . . .

9

Dishonest, I l legal or Intentional Acts ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

No Benefi ts to Others..........................................................

9

Tran sfer of Intere st ..... . . .. . . . . . . . .. . . . . . . . .. . . . . . . .. . . . . . . . .. . . . . . . . .. . . . . . . . . 9

GENERAL PROVISIONS IN THE EVENT OF LOSS

Ass i s tance And Coo pe ra t ion

..............................................

9

Claim Or S uit Aga ins t A C overed Perso n. . . . . .. . . .. . . .. . . .. . . .. . . .. . .

9

Ca ptain /Cre w D efen se ...... .. . . . . . . . .. . . . . . . .. . . . . . . .. . . . . . . .. . . . . . . . .. . . . . . .

1 0

Su i t Aga ins t Us

...............................................................

1 0

Arbi t ra t ion

..........................................................................

1 0

Not i ce

f L o s s

1 0

Proo f O f Loss

....................................................................

1 0

Pa ym en t O f Lo ss ...... . . . .. . . . . . . . . .. . . . . . . . .. . . . . . . . . .. . . . . . . . . .. . . . . . . . . .. . . . .

1 1

Our Right To Recover...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1 1

Right To Sa l vage

..............................................................

1 1

Ab and onm ent ..... . . .. . . . . . .. . . . . . . .. . . . . . . .. . . . . . .. . . . . . . .. . . . . . . .. . . . . . .. . . . . . . ..

1 1

Oth er Insu ranc e ...... . .. . . . . . . . .. . . . . . . . .. . . . . . . . .. . . . . . . . .. . . . . . . . .. . . . . . . . .. . . .

1 1

SIGNATURES

........................................................................

1 1



28/38

ELITE YACHT POLICY

AGREEMEN T AND DEFINITIONS

INSURING AGREEMENT

This is a legally binding insurance contract between you and us, incorporating in full the information and

representations contained upon the application form signed by you. We will provide the insurance coverage

described in this Policy, in return for payment to us of the premium due and compliance by

Covered Persons

with the provisions, conditions and warranties of this Policy.

DEFINITIONS

Throughout this Policy,

you

and your refer to the named insured as shown in the Declarations Page, and we, us

and our refer to the company providing this insurance. In addition, certain words and phrases are defined as

follows:

1. Bodily

Injury means physical bodily injury, sickness or disease arising from an

Occurrence

sustained by a

person, including death resulting from any of these.

2.

onstructive Total Loss

means a loss in which the cost of recovering and/or repairing the

Insured Vessel

is

greater than the PART A: PROPERTY DAMAGE, AMOUNT OF INSURANCE, shown on the Declarations

Page.

3. Covered Person

is defined as you, or any person or legal entity operating the

Insured

Vessel(s) as shown

on the Declarations Page with

your

direct and prior permission. It does not include any person or legal entity

operating the Insured Vessel and acting in the capacity of employee or agent of a marina, repair yard, yacht

club, sales agency, boat service station, towing or salvage entity or other similar organization. However,

we

will cover non-contractual liability of a

Covered Person

for

Bodily

Injury or Property Damage caused by

any of these persons or organizations.

4. Dinghy/Tender

is defined as,a small vessel owned by you, carried aboard the

Insured Vessel

and used in

conjunction with the Insured Vessel but does not meet the definition of

Personal Watercraft

5. Fine Arts means your paintings, etchings, drawings, tapestries, statuary and other bona fide works of art,

having historic value, artistic merit or rarity.

6. Fungi

means any type or form of fungus, including mold or mildew and any mycotoxins, spores, scents or

byproducts produced or released by Fungi.

7.

Insured Vessel

is defined as the vessel(s) shown on the Declarations Page including:

Furniture, spars, sails, machinery, fittings and other equipment normally required for the operation,

navigation or maintenance of the Insured Vessel;

Dinghies/Tenders

outboard motors and Personal Watercraft carried aboard and used in conjunction

with the Insured Vessel;

Trailers used exclusively for transporting

your Dinghy/Tenders

and Personal Watercraft;

Any vessel in which you acquire ownership of during the Policy Period; however,

you

must notify us

within thirty (30) days of the time you acquire the vessel and pay any additional premium required; in the

event of loss within thirty (30) days of the time you acquire the vessel,

we

will pay no more than its cost to

you or the PART A: PROPERTY DAMAGE, AMOUNT OF INSURANCE, whichever is less, subject to a

deductible of one (1 ) percent of the hull value.

Insured

Vessel does not include moorings, cradles, aircraft, submersible and semi-submersible watercraft, or

motorized vehicles for land conveyance.

8. Navigation and Communication Equipment

means permanent systems on board the Insured Vessel that

enable the Insured

Vessel

to navigate safely or communicate with other vessels or persons, but excluding

electronic engine control systems.

9. Occurrence means a loss or accident to which this insurance applies and which takes place within the Policy

Period appearing upon the Declarations Page of this Policy.

10. Permanent Full Time Captain means an individual who is the captain of the Insured Vessel and whose

occupation is exclusively limited to the command, operation and maintenance of the Insured Vessel.

11

Personal Property is defined as clothing, personal effects, fishing gear and equipment, sports equipment,

personal electronics and computer hardware that belong to you, Resident Relatives, or your guests, while

these items are on board the Insured Vessel, or are being loaded or unloaded. Personal Property does not

MA-17971b(01/13)

age of



29/38

include money, jewelry, furs, traveler s checks or any other valuable papers or documents. Personal

Property does not include any items or equipment contained within the definition of Insured Vessel.

Personal Watercraft is defined as a vessel powered by internal water jet propulsion, less than thirteen (13)

feet in length which the operator sits upon or stands astride and is commonly referred to as a wave runner or

jet ski.

Property Damage means accidental, direct physical loss or damage to tangible property arising from an

Occurrence. Tangible property does not include money, stocks, bonds, deeds, mortgages, or other

instruments of a similar nature.

Pollution means Property Damage, clean up costs or containment expenses imposed by any federal, state,

or local statutes or regulation or reasonably incurred by

you

arising out of the sudden and accidental

discharge spillage leakage or emission of waste oil fuel petroleum or chemical products.

Resident Relative means a person who at the time of an Occurrence is related by blood, marriage, civil

union or adoption to the

named insured

spouse or domestic partner, and who resides in the named

insured s household, even if temporarily living somewhere else. Resident Relative includes any ward or

foster child who usually resides within the named insured s household.

Total Loss

means the Insured

Vessel

shown on the Declarations Page is comp letely lost or destroyed.

Tropical Depressions Tropical Storms and Hurricanes

are defined as those so designated by the

National Weather Service and/or the National Hurricane Center.

Uninsured Boater and Uninsured Owner-Operator means any owner or operator of a vessel, other than an

Insured Vessel covered by this policy, who is legally responsible for an

Occurrence

and:

to whom no liability policy affords coverage; or

who cannot be identified, such as a hit-and-run operator.

PART A: PROPERTY DAMAGE COVERAGE

PERILS INSURED AGAINST:

We will pay for Property

Damage

to the Insured Vessel caused by an

Occurrence as well as Protection Against Loss and Salvage charges, except as excluded in this Policy or by

endorsement.

VALUATION:

The amount shown on the Declarations Page or endorsements of this Policy for PART A:

PROPERTY DAMAGE COVERAGE represents the agreed value of the Insured

Vessel

This is the maximum

amount

we

will pay in the event of a covered loss for Property

Damage

to the Insured

Vessel

OVERLAND TRANSPORT:

We will provide coverage for all accidental direct physical loss or damage arising

from an Occurrence while

your Dinghy/Tender

or Personal Watercraft is being transported overland including

loading and unloading. We will also provide coverage for all accidental direct physical loss or damage arising

from an Occurrence to any trailer owned by

you

but only if that trailer is used exclusively for transporting

your

Dinghy/Tender

or Personal Watercraft.

EXCLUSIONS:

We do not provide coverage under PART A: PROPERTY DAMAGE COVERAGE for any loss or

resulting damage from:

a. wear and tear, gradual deterioration, weathering, neglect, lack of reasonable care or due diligence in

the maintenance of the Insured Vessel;

b.

nsects, animals or marine life; however, Property Damage coverage is provided for:

engines generators or pum ps due to the attachme nt of zebra mussels;

collision with marine mammals;

muskrats or sea lions when their actions result in the sinking or submersion of the Insured

Vessel;

c. marring, scratching, denting;

d.

smosis or blistering;

e.

orrosion, except electrolytic (stray current) corrosion;

f.

ransportation onboard a cargo vessel or during loading or unloading;

g. Fungi, bacteria and 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.

EQUIPMENT ON SHORE:

We will provide coverage for all equipment contained in the definition of Insured

Vessel

that is removed temporarily from the Insured Vessel for storage on shore. The Amount Of Insurance

applicable to the Insured

Vessel

will be reduced by the amount covered on shore.

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BOTTOM INSPECTION COVERAGE: In the event of grounding, stranding or striking a submerged object by

the

Insured Vessel we

will pay the reasonable cost for an inspection of the bottom of the

Insured Vessel

within

fifteen (15) days after an Occurrence

even if no damage is found. There is no deductible for this coverage.

DEDUCTIBLE AMOUNT: We will adjust each claim separately for a covered loss to the

Insured Vessel. The

amount of each adjusted claim will be automatically reduced by the Deductible Amount shown on the

Declarations Page. For deductible purposes, we will treat two (2) or more covered losses resulting from the same

Occurrence as one 1) claim.

DEDUCTIBLE WAIVER:

If the amount of the adjusted claim exceeds the Deductible Amount shown on the

Declarations Page, no deductible will be applied.

DEDUCTIBLE FREE ITEMS: No deductible shall be applied in the event of a covered loss to any of the

following items:

Navigation and Communication Equipment;

Dinghy/Tender;

Personal Watercraft;

trailer used exclusively for transporting

your Dinghy/Tender

or

Personal Watercraft.

LOSS SETTLEMENT: In the event of loss or damage to the

Insured Vessel we

will pay the lowest of the

following amounts:

the PART A: PROPERTY DAMAGE COVERAGE, AMOUNT OF INSURANCE, shown on the

Declarations Page; or

the cost to repair; or

the cost of replacement with no deduction for depreciation, except as specified in the Property Subject to

Depreciation provision of this coverage part.

We

will pay the PART A: PROPERTY DAMAGE COVERAGE, AMOUNT OF INSURANCE, shown on the

Declarations Page, only if the Insured Vessel:

is a Total Loss; or

a Con structive Total Loss.

The cost of repairs shall be determined by repair yards, equipment repairers or surveyors agreeable to

us. The

amount we will pay for a Total Loss or

Constructive Total Loss

shall be reduced by the amount paid for repairs

of prior covered damage not completed at the time of the

Total Loss

or

Constructive Total Loss.

PROPERTY SUBJECT TO

DEPRECIATION:

In the event of loss or damage to

your Insured Vesse l s:

sails, dodgers, plastic or canvas coverings inclusive of all-weather bridge and cockpit enclosures which

are over five (5) years old;

trailers which are over five (5) years old and used exclusively for towing

your Dinghy/Tender or

Personal Watercraft; or

outboard motors or outdrive units which are over seven (7) years old.

We

will pay the lowest of:

the cost to repair;

the cost of replacement; or

the actual cash value a t the time of loss, which is defined herein as replacement cost less dep reciation.

However, with respect to the items specified above, in no event shall the depreciated value be less than

20 of the replacement cost of that item.

COMMERCIAL TOWING AND ASSISTANCE COVERAGE:

We

will reimburse you for the reasonable

costs you incur resulting from the following services to the

Insured Vessel

or boat trailer covered by this Policy if

voluntary help is not available and you must obtain commercial assistance:

towing to the nearest place where necessary repairs can be made;

delivery of fuel, oil, parts or loaned battery excluding the cost of these items them selves);

emergency labor at the site of disablement.

The amount we reimburse you shall not exceed the Commercial Towing and Assistance, Amount Of Insurance,

shown on the Declarations Page. The Commercial Towing and Assistance Coverage provided herein shall be

excess over all other valid or collectible towing assistance benefits applicable to the

Insured Vessel.

To the

extent this provision conflicts with the Other Insurance provision under GENERAL PROVISIONS IN THE EVENT

OF LOSS, the language herein shall apply to this Com mercial Towing and Assistance Coverage.

The Commercial Towing and Assistance Coverage provided herein is not subject to the PART A: PROPERTY

DAMAGE COVERAGE, DEDUCTIBLE AMOUNT.

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ADDITIONAL PROPERTY COVERAGE:

PRECAUTIONARY MEASURES: We will pay up to 5,000 for reasonable expenses incurred by you to haul

out or move the Insured Vessel to a place of safety prior to a covered loss when the Insured Vessel is in

imminent danger of fire,

Tropical Depressions Tropical Storms Hurricanes storm surges or tsunamis. This

coverage is not subject to a deductible.

PROTECTION AGAINST LOSS and SALVAGE:

It shall be your responsibility to use all lawful and

reasonable means to recover or protect the Insured

Vessel

from further loss or damage.

We will pay the

reasonable cost of such protection in addition to any other payments for loss under PART A: PROPERTY

DAMAGE COVERAGE of this Policy. The amount payable under this provision shall not exceed the PART A:

PROPERTY DAMAGE COVERAGE, AMOUNT OF INSURANCE, shown on the Declarations Page, nor reduce

that limit. All coverage provided under this Protection Against Loss and Salvage provision will terminate

immediately after payment by us of a Total Loss or

Constructive Total Loss.

This coverage is not subject to a

deductible.

UNSCHEDULED FINE ARTS COVERAGE:

We will provide up to 100,000 per Occurrence in the event of

a covered loss to unscheduled Fine Arts. In case of loss to a pair or a set, we agree to pay you the full amount

of the pair/set and you agree to surrender to us the remaining article(s) of the pair/set. This coverage is not

subject to a deductible.

We

will not cover damage to Fine Arts caused by: (1) repair, restoration or retouching of the item; (2) the

breaking of statues, marble, glass, china, porcelains and similar fragile articles. However, breakage will be

covered if caused by fire, lightning, aircraft, theft or attempted theft, wind, earthquake, flood, explosion, vandalism

or other malicious damage other than by a Covered Person

grounding, or collision between the

Insured Vessel

and another vessel or structure.

It is agreed that the limit applicable to the unscheduled ine Arts is included and is part of the PART A:

PROPERTY DAMAGE COVERAGE, AMOUNT OF INSURANCE, shown on the Declarations Page.

FIREARMS COVERAGE:

We will provide up to 5,000 per

Occurrence

for the theft of firearms from on board

the Insured Vessel which are owned by a

Covered Person.

This coverage does not apply if the firearms were

illegally obtained by a Covered Person, were used in an illegal activity or were confiscated by a government unit.

This coverage is not subject to a deductible.

MOPEDS MOTORBIKES

& MOTORCYCLES COVERAGE:


Occurrence for physical damage arising from an Occurrence to any moped, motorbike or motorcycle only when

damaged while on board the Insured Vessel.

This coverage is not subject to a deductible

PASSPORT AND PROOF OF IDENTIFICATION COVERAGE:


Occurrence for expenses that a Covered Person incurs to replace a lost or stolen passport and/or proof of

identification. This coverage is not subject to

a

deductible.

LIVING EXPENSE AFTER LOSS: We will reimburse you up to 5,000 per Occurrence for reasonable living

expenses incurred by you or

your paid crew who are attending to the Insured Vessel

following an Occurrence

in order to minimize loss or damage while the Insured Vessel is at the loss site. A reimbursement by us for

Living Expense After Loss will be in addition to any other payments we make for losses covered by this Policy.

This coverage is not subject to a deductible.

LOSS OF CHARTER INCOME COVERAGE:

In the event a covered loss under PART A: PROPERTY

DAMAGE COVERAGE which subsequently prevents the Insured Vessel

from executing a charter agreement we

shall pay no more than 100,000, in the aggregate during any one (1) Policy Period for Loss of Charter Income.

However, coverage under Loss of Charter Income shall not commence until seven (7) days after a covered loss to

the Insured Vessel is reported to us.

We

will pay no more than the actual charter fees under contract and for which deposits have been received prior

to the date of the covered loss to the Insured Vessel, less any expenses that would have been incurred during

the charter period. If we have made payment for loss, and there is a recovery as a result of that loss, we have

the right to that recovery to the extent of our payment. Payments for loss of charter income will be in addition to

any other payments we make for losses covered by this Policy.

Should we make any payment for Loss of Charter Income Coverage there shall be no payment by us arising out

of the same Occurrence for Rental Reimbursement Coverage. This coverage is in addition to amounts we will

pay under PART A: PROPERTY DAMAGE COVERAGE however, this coverage will not apply if the Insured

Vessel is a Total

Loss

or

Constructive Total Loss. This coverage shall be deemed excess over all other valid

and collectabte insurance

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RENTAL REIMBURSEMENT COVERAGE:

In the event that a covered loss under PART A: PROPERTY

DAMAGE COVERAGE renders the Insured Vessel unusable for a period of time in excess of seventy-two (72)

hours, we will pay up to 150,000, in the aggregate during any one (1) Policy Period, for the cost of chartering

another vessel for your use while the

Insured Vessel

is being repaired.

Should

we

make any payment for Rental Reimbursement Coverage there shall be no payment by us arising out

of the same Occurrence for Loss of Charter Income Coverage. This coverage is in addition to amounts we will

pay under PART A: PROPERTY DAMAGE COVERAGE; however, this coverage will not apply if the Insured

Vessel is a Total

Loss

or

Constructive Total Loss

PART B: LIABILITY COVERAGE

PERILS INSURED AGAINST:

We will pay sums that a

Covered Person

becomes legally obligated to pay as

a result of the ownership, operation or maintenance of the Insured Vessel because of:

Bodily

Injury or loss of life;

Property Damage;

Pollution;

attempted or actual raising, removal or destruction of the wreck of the Insured Vessel;

failure to raise, remove or destroy the wreck of the

Insured Vessel

liability to paid crew as defined in the Jones Act or under General Maritime Law.

EXCLUSIONS:

We do not provide coverage under PART B: LIABILITY COVERAGE for:

liability of other

Covered Persons

to you or any Resident

Relative

your liability to any Resident Relative;

liability assumed by a Covered Person under any contract or agreement;

fines or other penalties that any government unit requires

you

to pay, except as provided by MARINE

ENVIRONMENTAL DAMAGE FINES AND PENALTIES COVERAGE below;

punitive damages; and

liability arising from the use of motorized vehicles for land conveyance, aircraft, submersible and semi-

submersible watercraft.

LIMITS OF LIABILITY:

We will pay no more than the PART B: LIABILITY COVERAGE, AMOUNT OF

INSURANCE shown on the Declarations Page arising out of any one (1) Occurrence, regardless of the number

of Covered Persons involved, claims made or suits brought; or persons or organizations making claims or

bringing suits.

OPERATING OTHER VESSELS:

The PART B: LIABILITY COVERAGE, AMOUNT OF INSURANCE, shown

on the Declarations Page includes operating another vessel with the permission of its owner. If there is any other

insurance against a loss covered by this provision,

we

will provide coverage only as excess over such other

insurance. To the extent this provision conflicts with the Other Insurance provision under GENERAL

PROVISIONS IN THE EVENT OF LOSS, the language herein shall apply to this Operating Other Vessels clause.

We

do not provide any coverage while you operate other vessels if:

the vessel is owned wholly or in part by you; or

the vessel is being used for purposes other than private pleasure use; or

the vessel is furnished for your regular use; or

the vessel length exceeds that of the Insured

Vessel

by at least five 5) feet; or

the vessel is designed for, or capable of, speeds in excess of fifty-five (55) miles per hour; or

the vessel is a Personal Watercraft.

MARINA AS ADDITIONAL INSURED:

The yacht club, marina or other similar facility where the Insured

Vessel(s) is kept is added as an additional insured on this Policy, but only as their interest may appear in the

Insured Vessel and for the liability arising out of the negligence of the named insured, as defined in the Policy.

The additional insured is named as such for the purpose of Bodily Injury and Property Damage liability in

connection with the named insured's ownership, maintenance and operation of the Insured Vessel covered by

this Policy.

MARINE ENVIRONMENTAL DAMAGE FINES AND PENALTIES COVERAGE: We

will pay up to

50,000 per Occurrence for those fines or other penalties levied or assessed by a governmental unit, resulting

from physical injury, alteration or destruction of a coastal or marine habitat arising from physical contact with the

Insured Vessel

Any payment hereunder shall be in addition to the PART B: LIABILITY COVERAGE, AMOUNT

OF INSURANCE, shown on the Declarations Page.

SEARCH

&

RESCUE AND EMERGENCY SERVICES COVERAGE:

We will pay up to 25,000 per

Occurrence for the reasonable expenses

you

incur from a governmental unit for any search and rescue

operation in the event any person is lost at sea from the Insured Vessel, and for emergency aid or assistance to

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the Insured Vessel.

Any payment hereunder shall be in addition to the PART B: LIABILITY COVERAGE,

AMOUNT OF INSURANCE, shown on the Declarations Page.

PART C: MEDICAL PAYMENTS COVERAGE

PERILS INSURED AGAINST: We

will pay for reasonable medical, ambulance, hospital, professional nursing,

repatriation and funeral costs that become necessary due to

Bodily Injury

to persons injured while in, upon,

boarding, leaving or towed behind the

Insured Vessel. We

will pay only for those costs incurred within three 3)

years of the date of the Occurrence

giving rise to coverage hereunder.

EXCLUSIONS: We

do not provide coverage under PART C: MEDICAL PAY MENT S COVE RAGE for:

employee s) of a

Covered Person

who is injured while in the course of employment or while using,

maintaining or repairing the

Insured Vessel;

any obligation or payment assumed by a

overed Person

under contract or agreement;

anyone who is injured while the

Insured Vessel

is being conveyed hauled out or launched ;

anyone to or for whom benefits are payable under any state or federal remedy, law, statute or

compensation law or act.

LOSS SETTLEMENT:

We will pay no more than the PART C: MEDICAL PAYMENTS COVERAGE, AMOUNT

OF INSURANCE, shown on the Declarations Page for all covered costs of each person injured as a result of any

Occurrence.

MEDICAL PAYMENTS PROOF OF LOSS:

A written, sworn proof of loss must be filed with us by any person

seeking payment by us under PART C: MEDICAL PAYMENTS COVERAGE, or by someone on their behalf. This

proof of loss must include:

the name and address of each person and organization performing covered services;

the nature, extent and dates of these services; and

itemiz

voorhees et al v. ace american insurance company complaint

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