Chubb Group of Insurance Companies Continuum From Chubb Timely Liability Solutions Applications for: Discontinued Products Liability Insurance Successor Liability Insurance Retroactive Liability Insurance Chubb Group of Insurance Companies 15 Mountain View Road, Warren, NJ 07059 APPLICATION FOR CONTINUUM LIABILITY INSURANCE ____________________________________________________________________________________________________ GENERAL INFORMATION 1. a. Applicant Name: __________________________________________________________________________________ b. Mailing Address: __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ c. Website Addresses: _________________________________________________________________________________ d. Applicant is: corporation joint venture partnership individual other (describe):_________ ___________________________________________________________________________________________________ e. If publicly traded, symbol/exchange: ____________________________________________________________________ f. Year business established: __________ g. Is Applicant a subsidiary of another organization? Place of incorporation/organization: ___________________________ Yes No If yes, explain:_______________________________________________________________________________________ h. Has any legal or trade name of the Applicant changed (including the last 10 years)? Yes No If yes: ______________________________________________________________________________________ I. Any bankruptcies or liens against the Applicant or other parties to the transaction? Yes No If yes: ______________________________________________________________________________________ 2. Producer: ___________________________________________________________________________ Number: _______________ 3. Has any insurer ever cancelled or refused to renew any coverage? Yes No If yes, explain: _______________________________________________________________________________________ _______________________________________________________________________________________ TRANSACTION INFORMATION Describe the circumstances or transactions leading to this Application for insurance. Include separate attachments as necessary. _____________________________________________________________________________________________ _____________________________________________________________________________________________ Applicant’s role in the transaction: Buyer Seller other (explain): ____________ Describe the transaction: discontinuation of business or product or service line total purchase/sale or merger purchase or sale of all or substantially all assets of the acquired entity purchase or sale of less than substantially all assets of the acquired entity other (describe): ____________________________________________________________________________ Page 2 of 14 Chubb Group of Insurance Companies 15 Mountain View Road, Warren, NJ 07059 __________________________________________________________________________________________________________________________ COVERAGE REQUEST Limit requested (all coverages subject to a single Aggregate Limit Of Insurance): General Liability products liability ____________________________ Aggregate premises / operations liability ________________________ other: _______________ ___________________________ Deductible / Retention requested: ___________________________ Each Claim / Event Excess Liability Limit requested (all coverages subject to a single Aggregate Limit Of Insurance): products liability ___________________________ Aggregate premises / operations liability ___________________________ automobile liability . ___________________________ employer’s liability ___________________________ other: _____________________ ___________________________ Excess Liability - Please complete and attach Schedules Of Underlying Insurance as requested herein. _________________________________________________________________________________________________________________________ Injury or Offense Period Claim Reporting Period Injury or Offense Period is the period during which a covered injury or offense would occur (future) or would have occurred (past). Claim Reporting Period is the period during which the first report of a covered claim would be made (future) to the insured or insurer (in no case earlier than the date we agree to bind coverage). From: __________________ From: __________________ To: To: __________________ __________________ __________________________________________________________________________________________________________________________ EXPOSURE INFORMATION 1. Describe all businesses, operations and products (current and prior) potentially exposing the Injury or Offense Period including complete descriptions of all applicable entities. Include separate attachments as necessary. Page 3 of 14 Chubb Group of Insurance Companies 15 Mountain View Road, Warren, NJ 07059 __________________________________________________________________________________________________________________________ 2. Describe any assets, businesses, entities, operations, products or services that have been (or to be) discontinued, divested or sold (including the last 10 years). Indicate year discontinued, divested or sold as well as expected product/project life spans and quantify the number of products/projects estimated still viable and in use. Include separate attachments as necessary. Year 3. Transaction Type / Description Product / Project Life Span Cumulative Amount Still Viable And In Use With respect to any discontinued, divested or sold assets, businesses, entities, operations, products or services, describe any liabilities that have been assumed or retained by the Applicant. ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ 4. If liabilities have been assumed by or transferred to others, describe by whom, how and the extent to which such others are responsible. ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ 5. If coverage is requested in connection with operations or products of an entity that has been (or to be) discontinued, divested or sold by the Applicant, then indicate if coverage is to apply only to the Applicant as “the insured” or to both the Applicant and the acquiring entity as “insureds”? _________________________________________________________________________________________________________ _________________________________________________________________________________________________________ 6. Describe and quantify any incomplete or unsold inventory at the time of this transaction. Indicate the disposition plans for any such inventory. _________________________________________________________________________________________________________ _________________________________________________________________________________________________________ Page 4 of 14 Chubb Group of Insurance Companies 15 Mountain View Road, Warren, NJ 07059 __________________________________________________________________________________________________________________________ SALES: List sales for each year of the Injury or Offense Period. YEAR U.S.A. / CANADA SALES OTHER COUNTRY SALES TOTAL SALES # OF UNITS Name other countries by sales volumes: ______________________________________________________________________________ ________________________________________________________________________________________________________________ PRODUCTS - Please explain all answers as requested. Include separate attachments as necessary. Attach copies of product brochures/catalogues and marketing materials (current and those used during the Injury or Offense Period.) 1. Expected product life spans: _____Years _____Months. Explain: __________________________________________________________________________________________________ 2. Yes No Any products or services in connection with aircraft/aerospace or watercraft? If yes: ____________________________________________________________________________________________________ 3. Any products used in connection with automobiles, other vehicles or mobile equipment? Yes No If yes: ____________________________________________________________________________________________________ 4. Yes No Any products or services in connection with nuclear or other energy-related facilities? If yes: ____________________________________________________________________________________________________ 5. Yes No Explosive or flammable products? If yes: ___________________________________________________________________________________________________ 6. Contaminative, pathogenic, toxic / poisonous or other pollutant or hazardous products? Yes No If yes: ___________________________________________________________________________________________________ 7. Yes No Any products containing asbestos, silica, lead or other hazardous materials? If yes: ___________________________________________________________________________________________________ 8. Yes No Any workplace safety products or services? If yes: ___________________________________________________________________________________________________ 9. Any drug, medical device, dietary supplement or cosmetics related products or services? Yes No If yes: ___________________________________________________________________________________________________ Page 5 of 14 Chubb Group of Insurance Companies 15 Mountain View Road, Warren, NJ 07059 __________________________________________________________________________________________________________________________ Yes No 10. Any alcohol, firearm or tobacco related products or services? If yes: ___________________________________________________________________________________________________ 11. Any children’s products or services? Yes No If yes: ___________________________________________________________________________________________________ 12. Yes No Foreign sourced products distributed in the U.S.A., or used as components / ingredients? If yes: ___________________________________________________________________________________________________ 13. Any products or services discontinued (including for safety or other reasons)? Yes No If yes: ___________________________________________________________________________________________________ CONTRACTS / INSTALLATIONS / SERVICE WORK - Please explain all answers as requested. Include separate attachments as necessary. 1. Describe any installation, repair, service or other contract work. Include separate attachments as necessary, listing projects and related revenues for the last 10 years. ________________________________________________________________________________________________________ ________________________________________________________________________________________________________ 2. Yes No All contract work by Applicant or with subcontractors supported by formal written contracts? If no, why not? __________________________________________________________________________________________ 3. Yes No Any work subcontracted to others? If yes, describe what types and amount work?:________________________________________________________________ ________________________________________________________________________________________________________ 4. Yes No All contracts with subcontractors, suppliers and vendors reviewed by legal counsel? If no, why not?:___________________________________________________________________________________________ 5. All contracts with subcontractors and suppliers require indemnity to the Applicant and holding Yes No the Applicant harmless from legal action? If no, explain: ___________________________________________________________________________________________ 6. Subcontractors and suppliers required to carry insurance (at least GL and Yes No Workers Compensation)? If yes, what types / limits? _________________________________________________________________________________ If no, why not? __________________________________________________________________________________________ 7. Subcontractors and suppliers required to provide the Applicant with “insured” status Yes No on their insurance? If no, explain: ___________________________________________________________________________________________ 8. Subcontractors and suppliers required to provide certificates of insurance to the Applicant? Yes No If no, explain: ___________________________________________________________________________________________ 9. Yes No Any construction, demolition or structural alteration work? If yes: _________________________________________________________________________________________________ 10. Yes No Blasting, earth moving, excavation, mining or other underground work? If yes: _________________________________________________________________________________________________ 11. Maritime, reservoir or other waterway or water supply work? Yes No If yes: _________________________________________________________________________________________________ 12. Yes No Bridge, dam, railroad or tunnel work? If yes: _________________________________________________________________________________________________ Page 6 of 14 Chubb Group of Insurance Companies 15 Mountain View Road, Warren, NJ 07059 _________________________________________________________________________________________________________________________ Yes No 13. Any work involving asbestos, silica, lead or other pollutants or hazardous materials? If yes: _________________________________________________________________________________________________ 14. Architects, engineers, surveyors or other professionals employed or contracted? Yes No If yes: _________________________________________________________________________________________________ POLLUTION - Please explain all answers as requested. Include separate attachments as necessary. 1. Any environmental or regulatory agency (U.S.A. or otherwise) identified or investigated any party Yes No as a generator, transporter, storer, treater or disposer of hazardous materials? If yes: _________________________________________________________________________________________________ 2. Yes No Any underground storage tanks at any location (current or past)? If yes: _________________________________________________________________________________________________ 3. Any landfills or other waste facilities? Yes No If yes: _________________________________________________________________________________________________ OTHER EXPOSURES - Please explain all answers as requested. Include separate attachments as necessary. 1. Aircraft owned? Yes No Non-owned Aircraft? Yes No If yes: _________________________________________________________________________________________________ 2. Watercraft owned? Yes No Non-owned Watercraft? Yes No If yes: _________________________________________________________________________________________________ 3. Yes No Ownership, operation, maintenance or use of any railroad or rail equipment? If yes: _________________________________________________________________________________________________ 4. Any exposure to nuclear/radioactive or other hazardous materials? Yes No If yes: _________________________________________________________________________________________________ 5. Yes No Any uses of genetic engineering or nanotechnology? If yes: _________________________________________________________________________________________________ 6. Yes No Any healthcare professionals employed or contracted or health care facilities? If yes: _________________________________________________________________________________________________ 7. Any law enforcement or security services? Yes No If yes: _________________________________________________________________________________________________ 8. Yes No Any accounting or legal services? If yes: _________________________________________________________________________________________________ 9. Any financial or insurance services? Yes No If yes: _________________________________________________________________________________________________ 10. Yes No Any independent contractors engaged? If yes: _________________________________________________________________________________________________ 11. Yes No Any employees/workers contracted from or to another entity? If yes: _________________________________________________________________________________________________ 12. Any liability assumed under contract or agreement? Yes No If yes: _________________________________________________________________________________________________ 13. Yes No Child care or other special care facilities operated or sponsored? If yes: __________________________________________________________________________________________________ Page 7 of 14 Chubb Group of Insurance Companies 15 Mountain View Road, Warren, NJ 07059 ___________________________________________________________________________________________________________ 14. Any business or operations located outside the U.S.A.? Yes No If yes: __________________________________________________________________________________________________ 15. Any special events or sponsored activities? Yes No If yes: __________________________________________________________________________________________________ LOSS PREVENTION/PRODUCT RECALL PLANS AND CONTROLS Please explain all answers as requested. Include separate attachments as necessary. 1. Does the Applicant have in place formal Loss Prevention and Quality Control Programs? Yes No Attach copies of programs or explain below. ______________________________________________________________________________________________________ ______________________________________________________________________________________________________ 2. Yes No All advertising materials, instruction manuals, packaging and warning labels reviewed by legal counsel? If no, why not?: ______________________________________________________________________________________________________ ______________________________________________________________________________________________________ 3. Describe how to identify and distinguish products from similar (competitors) products at time of loss: ______________________________________________________________________________________________________ ______________________________________________________________________________________________________ 4. Describe how to identify and quantify products by date of manufacture and sale at time of loss: ______________________________________________________________________________________________________ ______________________________________________________________________________________________________ 5. Does the Applicant maintain records of: a) when and where products were manufactured b) to whom products were sold and the date of sale c) who supplied components and ingredients going into products d) quality control and product/material tests Yes Yes Yes Yes No No No No Describe record keeping practices: by whom, where and for how long records are maintained, including maintenance and access in the FUTURE (after the transaction): ___________________________________ __________________________________________________________________________________________ ______________________________________________________________________________________________________ 6. Does the Applicant have in place formal Product Recall Plans? Yes No Describe formal plans for handling FUTURE (after the transaction) customer claims, communications and complaints, and product recalls. Attach copies of programs or explain below. ______________________________________________________________________________________________________ ______________________________________________________________________________________________________ 7. Any products ever recalled, withdrawn or suspended from use (voluntarily or involuntarily) due to actual or potential defects or safety reasons, including provisions of information or material for retro fitting? Yes No If yes, describe recall / retro fit actions and percent of products actually recovered / retro fit:______________ _____________________________________________________________________________________________ _____________________________________________________________________________________________ Page 8 of 14 Chubb Group of Insurance Companies 15 Mountain View Road, Warren, NJ 07059 _________________________________________________________________________________________________________________ 8. Describe formal plans for handling FUTURE (after the transaction) maintenance, repair, service and warranty work: ______________________________________________________________________________________________________ ______________________________________________________________________________________________________ ____________________________________________________________________________________________________ LOSS EXPERIENCE Please explain all answers as requested. Include separate attachments as necessary. 1. Is the Applicant aware of any circumstances, injuries or offenses that might lead to a claim Yes No or suit being filed, including losses arising out of discontinued, divested or sold businesses or operations, or products no longer manufactured or sold? If yes: __________________________________________________________________________________________________ 2. Any judgments or settlements that are sealed or not disclosed within this Application? Yes No If yes: __________________________________________________________________________________________________ 3. Any current or past administrative, civil or criminal investigation or litigation by any Yes No governmental or regulatory authority? If yes: __________________________________________________________________________________________________ 4. Describe any individual claims and losses greater than U.S.A. $10,000. Include the date and nature of loss and amounts reserved and paid (including amounts within any deductible/retention and loss adjustment/defense expenses) and the current status (closed or open). Include separate attachments as necessary. _______________________________________ ________________________________________________________________________________________________________ ________________________________________________________________________________________________________ LOSS EXPERIENCE SCHEDULES Provide aggregate loss experience in the Loss Experience Schedules for each year of the Injury or Offense Period or the last 10 years, whichever is greater. Include amounts within any deductibles/retentions and loss adjustment/defense expenses. Attach loss reports from prior insurers YEAR CLAIMS/LOSSES COUNT AMOUNT RESERVED AMOUNT PAID TOTAL INCURRED Page 9 of 14 Chubb Group of Insurance Companies 15 Mountain View Road, Warren, NJ 07059 _________________________________________________________________________________________________________________________ OTHER LOSS EXPERIENCE - Please explain. Include auto liability, employer’s liability and other loss experience if requesting excess liability insurance for such other exposures. __________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________ ____________________________________________________________________________________________________ FINANCIAL / TRANSACTION INFORMATION 1. Attach copies of audited financial statements and other pertinent financial information for the most recent year and each year of the Injury or Offense Period. 2. Describe any businesses, operations and products not consolidated within the financial information submitted that the Applicant is currently or has been involved with (including any contract work, investments, joint ventures, partnerships, etc.). Include separate attachments as necessary. _________________________________________________________________________________________________________ _________________________________________________________________________________________________________ 3. As part of this Application, please attach copies of: x Purchase/sale/acquisition/merger transaction agreements, including all schedules, exhibits and disclosure statements x Letters of intent, prospectus, side agreements and letters relating to the transaction PRIOR INSURANCE INFORMATION Attach copies of policies, including endorsements. Policy Period Insurer Premium Limits Deductible/Retention Any prior coverage on a claims-made basis? Yes No If yes, describe (including Retroactive Dates and status of Extended Reporting Periods): __________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________ Page 10 of 14 Chubb Group of Insurance Companies 15 Mountain View Road, Warren, NJ 07059 _________________________________________________________________________________________________________________________ ANY CLAIMS ARISING OUT OF CIRCUMSTANCES KNOWN TO YOU (WHICH OTHERWISE WOULD BE LIKELY TO GIVE RISE TO A CLAIM UNDER THE PROPOSED INSURANCE) ARE EXCLUDED FROM COVERAGE UNDER ANY EVENTUAL INSURANCE WE MAY PROVIDE. COMPLETION OF THIS APPLICATION DOES NOT BIND COVERAGE. APPLICANT’S ACCEPTANCE OF THE COMPANY’S QUOTATION IS REQUIRED PRIOR TO BINDING COVERAGE AND POLICY ISSUANCE. ____________________________________________________________________________________________________________ CERTIFICATION The undersigned persons declare that to the best of their knowledge the statements set forth above and in any attachments to this APPLICATION are true and correct, and that every reasonable effort has been made to obtain sufficient information to facilitate the proper and accurate completion of this APPLICATION. The undersigned agree that if any significant change in the condition of the Applicant is discovered between the date of this APPLICATION and the effective date of the policy which would render this APPLICATION inaccurate or incomplete, notice of such change will be reported in writing to the COMPANY immediately and, if necessary, any outstanding quotation may be modified or withdrawn. The undersigned persons understand and further agree that the completion and signing of this APPLICATION neither binds the COMPANY to sell nor the Applicant to purchase the insurance. PLEASE NOTE: ONLY DULY APPOINTED AGENTS OF THE COMPANY AND LICENSED BROKERS ARE AUTHORIZED TO SOLICIT APPLICATIONS FOR COVERAGE. AGENTS AND BROKERS ARE NOT AUTHORIZED TO BIND COVERAGE. NO COVERAGE SHALL BE PROVIDED UNLESS THE COMPANY ACCEPTS THE APPLICATION AND BINDS THE COVERAGE. False Information: Any person who, knowingly and with intent to defraud an insurance company or other person, files an Application for insurance containing any false information, or conceals for the purpose of misleading, information concerning any material fact thereto, commits a fraudulent insurance act, which is a crime. False Information (California Only): For your protection, California law requires the following to appear on this form: Any person who knowingly presents false or fraudulent claim for the payment of a loss is guilty of a crime and may be subject to fines and confinement in state prison. False Information (Colorado Only): It is unlawful to knowingly provide false, incomplete, or misleading facts or information to an insurance company for the purpose of defrauding or attempting to defraud the company. Penalties may include imprisonment, fines, denial of insurance and civil damages. Any insurance company or agent of an insurance company, who knowingly provides false, incomplete or misleading facts or information to a policyholder or claimant for the purpose of defrauding or attempting to defraud the policyholder or claimant with regard to a settlement or award payable from insurance proceeds, shall be reported to the Colorado division of insurance within the department of regulatory agencies. False Information (Florida Only): Any person who, knowingly and with intent to injure, defraud, or deceive any insurer, files a statement of claim or an Application containing any false, incomplete, or misleading information, is guilty of a felony of the third degree. False Information (Louisiana Only): Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or knowingly presents false information in an Application for insurance is guilty of a crime and may be subject to fines and confinement in prison. False Information (Maine Only): It is a crime to knowingly provide false, incomplete or misleading information to an insurance company for the purpose of defrauding the company. Penalties may include imprisonment, fines or a denial of insurance benefits. Page 11 of 14 Chubb Group of Insurance Companies 15 Mountain View Road, Warren, NJ 07059 ______________________________________________________________________________________________________________________ False Information (Nebraska Only): Any person who, knowingly and with intent to defraud any insurance company or other person, files an Application for insurance containing any false information, or conceals for the purpose of misleading, information concerning any material fact thereto, commits a fraudulent insurance act, which is a crime, where such person subsequently submits a claim. False Information (New Mexico Only): Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or knowingly presents false information in an Application for insurance is guilty of a crime and may be subject to civil fines and criminal penalties. False Information (New York Only): Any person who, knowingly and with intent to defraud any insurance company or other person, files an Application for insurance containing any materially false information, or conceals information concerning any material fact thereto, for the purpose of misleading, commits a fraudulent insurance act, which is a crime, and shall also be subject to a civil penalty not to exceed five thousand dollars and the stated value of the claim for each such violation. False Information (Ohio Only): Any person who, with the intent to defraud or knowing that he is facilitating a fraud against an insurer, submits an Application or files a claim containing a false or deceptive statement is guilty of insurance fraud. False Information (Oklahoma Only): WARNING: Any person who knowingly, and with intent to injure, defraud or deceive any insurer, makes any claim for the proceeds of an insurance policy containing any false, incomplete or misleading information is guilty of a felony. False Information (Oregon Only): Any person who, knowingly and with intent to defraud any insurance company or other person, files an Application for insurance containing any false information, or conceals for the purpose of misleading information containing any material fact thereto, may be guilty of a insurance fraud. False Information (Pennsylvania Only): Any person who, knowingly and with intent to defraud any insurance company or other person, files an Application for insurance or statement of claim containing any materially false information, or conceals for the purpose of misleading, information concerning any material fact thereto, commits a fraudulent insurance act, which is a crime and subjects such person to criminal and civil penalties. False Information (Vermont Only): Any person who, knowingly and with intent to defraud any insurance company or other person, files an Application for insurance containing any false information, or conceals for the purpose of misleading, information concerning any material fact thereto, commits a fraudulent insurance act, and the policy may be voided. False Information (Virginia Only): It is a crime to knowingly provide false, incomplete or misleading information to an insurance company for the purpose of defrauding the insurance company. Penalties include imprisonment, fines, and denial of insurance benefits. ____________________________________________ Applicant's Name/Legal Representative (print) ___________________________ Title ____________________________________________ Applicant Signature ___________________________ Date ____________________________________________ Producer Name (print) ___________________________ Title ____________________________________________ Producer Signature ___________________________ Date Page 12 of 14 Chubb Group of Insurance Companies 15 Mountain View Road, Warren, NJ 07059 ________________________________________________________________________________________________________________________ Excess Liability Insurance Schedules Of Underlying Insurance If requesting Excess Liability Insurance, please complete copies of this Schedule for EACH year of the Injury or Offense Period. Attach additional Schedules as necessary. YEAR________ Describe Others Prem/Ops Liability Products/C.O. Liability Pers./Adv. Liability Occurrence Claims-Made Occurrence Claims-Made Occurrence Claims-Made Auto Liability Employer's Liability Insurer Policy No. Policy Period Annual Premium Type Occurrence Claims-Made Occurrence Claims-Made Retro Date ERP? Limits Of Insurance $ Occurrence $ Aggregate $ $ Occurrence $ Aggregate $ Aggregate Accident $ Claim / Event $ Aggregate $ Claim / Event $ Aggregate $ $ $ $ $ $ Aggregate $ Aggregate $ $ $ $ per loc/project: Y/N Deductible/ Retention $ Claim / Event $ Aggregate $ $ $ Please explain all answers as requested. Include separate attachments as necessary. 1. Yes No Defense/supplementary payments reduce any limits of insurance? If yes, describe: ________________________________________________________________________________________ 2. Any coverage extensions: pollution, product recall, etc.? Yes No If yes, describe: ________________________________________________________________________________________ Attach copies of all proposed underlying policies, including endorsements. Page 13 of 14 Chubb Group of Insurance Companies 15 Mountain View Road, Warren, NJ 07059 __________________________________________________________________________________________________________________________ Excess Liability Insurance Autos Schedule If requesting Excess Liability Insurance for Auto Liability, please complete this Schedule. List number of units for each year of the Injury or Offense Period. TYPE OF UNIT / YEAR Private Passenger Light Trucks Medium Trucks Heavy Trucks Extra Heavy Trucks/Tractors Buses Other, describe TOTAL Please explain all answers as requested. Include separate attachments as necessary. Yes No 1. Caustics, explosives, flammables, waste or other hazardous materials transported? If yes: ______________________________________________________________________________________________________ Yes No 2. Passengers transported for a fee? If yes: ______________________________________________________________________________________________________ 3. Any drivers not covered by Workers Compensation insurance? Yes No If yes: ______________________________________________________________________________________________________ Yes No 4. Any auto liability assumed under contract? If yes: ______________________________________________________________________________________________________ w:/GL/Liability Applications/Continuum Appl Updated with Fraud 2006.doc Page 14 of 14