AVN 2A LONDON AIRCRAFT INSURANCE POLICY PROPOSAL FORM

AVN 5A DEFERRED PREMIUMS

AVN 6A PREMIUM PAYMENT CLAUSE

AVN 8 FULL PREMIUM IF LOST

AVN 9 FULL PREMIUM IN THE EVENT OF A CLAIM EXCEEDING PREMIUM PAID

AVN 11A 15% TRANSPORTATION COSTS CLAUSE

AVN 14 LIMITATION OF LIABILITY CLAUSE (JOINT INSUREDS)

AVN 15 LIMITATION OF LIABILITY ENDORSEMENT (ADDITIONAL INSUREDS)

AVN 16 LLOYD'S AIRCRAFT HULL POLICY (U.S.A.)

AVN 17 ADDITIONS AND DELETIONS

AVN 18A ADDITIONS AND DELETIONS

AVN 19A ADDITIONS AND DELETIONS

AVN 20 LLOYD'S AIRCRAFT LIABILITY POLICY (U.S.A.)

AVN 61 AGREED VALUE CLAUSE

AVN 62 SEARCH AND RESCUE EXTENSION CLAUSE

AVN 63 CROSS LIABILITY CLAUSE

AVN 25 CLAIMS CONTROL CLAUSE

AVN 26A AIRCRAFT LAYING-UP RETURNS CLAUSE

AVN 28B AIRCRAFT FINANCIAL INTEREST ENDORSEMENT

AVN 29 MANUFACTURER AS ADDITIONAL INSURED

AVN 30A LONDON HELICOPTER INSURANCE POLICY

AVN 32 GLIDERS (LAUNCHING SITES) CLAUSE

AVN 34 PASSENGER VOLUNTARY SETTLEMENT ENDORSEMENT

AVN 36 SPREADER CLAUSE “B”

AVN 37B EXCESS AVIATION LIABILITY FORM

AVN 38B NUCLEAR RISKS EXCLUSION CLAUSE

AVN 41A REINSURANCE UNDERWRITING AND CLAIMS CONTROL CLAUSE

AVN 42 DOCUMENTS OF CARRIAGE CLAUSE

AVN 44 MUTUAL REVISION CLAUSE (AVIATION LIABILITY)

AVN 44A PASSENGER LIABILITY (MUTUAL REVISION & SPECIAL CONTRACTS) CLAUSE

AVN 46B NOISE AND POLLUTION AND OTHER PERILS EXCLUSION CLAUSE

AVN 47 NOISE COVERAGE POLICY

AVN 48B WAR, HI-JACKING AND OTHER PERILS EXCLUSION CLAUSE

AVN 48C WAR, HI-JACKING AND OTHER PERILS EXCLUSION CLAUSE (AVIATION)

AVN 48D WAR, HI-JACKING AND OTHER PERILS EXCLUSION CLAUSE (AVIATION)

AVN 51 EXTENDED COVERAGE ENDORSEMENT (AIRCRAFT HULLS)

AVN 51(A) EXTENDED COVERAGE ENDORSEMENT (AIRCRAFT HULLS)

AVN 52C EXTENDED COVERAGE ENDORSEMENT (AVIATION LIABILITIES)

AVN 52D EXTENDED COVERAGE ENDORSEMENT (AVIATION LIABILITIES)

AVN 52E EXTENDED COVERAGE ENDORSEMENT (AVIATION LIABILITIES)

AVN 52F EXTENDED COVERAGE ENDORSEMENT (AVIATION LIABILITIES)

AVN 52F EXTENDED COVERAGE ENDORSEMENT (AVIATION LIABILITIES)

AVN 52G EXTENDED COVERAGE ENDORSEMENT (AVIATION LIABILITIES)

AVN 52H EXTENDED COVERAGE ENDORSEMENT (AVIATION LIABILITIES)

AVN 52J EXTENDED COVERAGE ENDORSEMENT (AVIATION LIABILITIES)

AVN 52K EXTENDED COVERAGE ENDORSEMENT (AVIATION LIABILITIES)

AVN 52L EXTENDED COVERAGE ENDORSEMENT (AVIATION LIABILITIES)

AVN 52P AVIATION MANUFACTURERS PRODUCT LIABILITIES ENDORSEMENT

AVN 52R EXTENDED COVERAGE ENDORSEMENT (AVIATION LIABILITIES)

AVN 53 ADDITIONAL INSURED ENDORSEMENT (LIABILITIES)

AVN 54 NON-OWNED AIRCRAFT ENDORSEMENT

AVN 56 ENGINE ENDORSEMENT

AVN 57A AIRCRAFT ACCIDENT LIABILITY INSURANCE

AVN 57A (AUSTRIA) AIRCRAFT ACCIDENT LIABILITY INSURANCE

AVN 57A (SWITZERLAND) AIRCRAFT THIRD PARTY LEGAL LIABILITY

AVN 57C (CANADA) AIRCRAFT ACCIDENT LIABILITY INSURANCE

AVN 58A D.O.T. 14 CFR PART 205 REINSURANCE

AVN 59 NON-AVIATION LIABILITY CLAUSE

AVN 60А PERSONAL INJURY EXTENSION

AVN 61 AGREED VALUE CLAUSE

AVN 62 SEARCH AND RESCUE EXTENSION CLAUSE

AVN 63 CROSS LIABILITY CLAUSE

AVN 64A PROFIT COMMISSION ON RENEWAL CLAUSE

AVN 64B PROFIT COMMISSION ON RENEWAL CLAUSE

AVN 65 SERVICE OF SUIT CLAUSE (U.S.A.)

AVN 66 LONDON MARKET AVIATION PRODUCTS LIABILITY POLICY WORDING

AVN 67B AIRLINE FINANCE/LEASE CONTRACT ENDORSEMENT

AVN 67B AIRLINE FINANCE/LEASE CONTRACT ENDORSEMENT (HULL WAR)

AVN 67C AIRLINE FINANCE/LEASE CONTRACT ENDORSEMENT

AVN 67C AIRLINE FINANCE/LEASE CONTRACT ENDORSEMENT (HULL WAR)

AVN 68 CREW EXCLUSION CLAUSE

AVN 69 LONDON AIRCRAFT INSURANCE POLICY (USA)

AVIATION INSURANCE CLAUSE HANDBOOK - KLAUSULA PESAWAT TERBANG

The Insurers agree to insure against loss, damage or liability, arising out of an Accident occurring during the Period of Insurance to the extent and in the manner provided in this Policy.

SECTION I LOSS OF OR DAMAGE TO AIRCRAFT

	1. Coverage a) The Insurers will at their option pay for, replace or repair, accidental loss of or damage to the Aircraft described in the Schedule arising from the risks covered, including disappearance if the Aircraft is unreported for sixty days after the commencement of Flight, but not exceeding the Amount Insured as specified in Part 2(5) of the Schedule and subject to the amounts to be deducted specified in Condition 3(c). b) If the Aircraft is insured hereby for the risks of Flight, the Insurers will, in addition, pay reasonable emergency expenses necessarily incurred by the Insured for the immediate safety of the Aircraft consequent upon damage or forced landing, up to 10 per cent of the Amount Insured as specified in Part 2(5) of the Schedule. 2. Exclusions applicable to this Section only a) wear and tear, deterioration, breakdown, defect or failure howsoever caused in any Unit of the Aircraft and the consequences thereof within such Unit; b) damage to any Unit by anything which has a progressive or cumulative effect but damage attributable to a single recorded incident is covered under paragraph 1(a) above. HOWEVER accidental loss of or damage to the Aircraft consequent upon 2(a) or (b) above is covered under paragraph 1(a) above. 3. Conditions applicable to this Section only a) If the Aircraft is damaged i) no dismantling or repairs shall be commenced without the consent of the Insurers except whatever is necessary in the interests of safety, or to prevent further damage, or to comply with orders issued by the appropriate authority; ii) (ii) the Insurers will pay only for repairs and transport of labor and materials by the most economical method unless the Insurers agree otherwise with the Insured.


Wear and Tear, Breakdown


Dismantling Transport and Repairs
Passengers Property Noise and Pollution and Other Perils		(a) injury (fatal or otherwise) or loss sustained by any passenger whilst entering, on board, or alighting from the Aircraft; (b) loss of or damage to any property belonging to or in the care, custody or control of the Insured; (c) Claims excluded by the attached Noise and Pollution and Other Perils Exclusion Clause.
		3. Limit of Indemnity applicable to this Section The liability of the Insurers under this Section shall not exceed the amount stated in Part 6(C) of the Schedule, less any amounts under Part 6(B). The Insurers will defray in addition any legal costs and expenses incurred with their written consent in defending any action which may be brought against the Insured in respect of any claim for compensatory damages covered by this Section, but should the amount paid or awarded in settlement of such claim exceed the Limit of Indemnity then the liability of the Insurers in respect of such legal costs and expenses shall be limited to such proportion of the said legal costs and expenses as the Limit of Indemnity bears to the amount paid for compensatory damages. See also Section IV
		SECTION III LEGAL LIABILITY TO PASSENGERS 1. Coverage The Insurers will indemnify the Insured in respect of all sums which the Insured shall become legally liable to pay, and shall pay, as compensatory damages (including costs awarded against the Insured) in respect of 1. accidental bodily injury (fatal or otherwise) to passengers whilst entering, on board, or alighting from the Aircraft and 2. loss of or damage to baggage and personal articles of passengers arising out of an Accident to the Aircraft. Provided always that i. before a passenger boards the Aircraft the Insured shall take such measures as are necessary to exclude or limit liability for claims under (a) and (b) above to the extent permitted by law; ii. if the measures referred to in proviso (i) above include the issue of a passenger ticket/baggage check, the same shall be delivered correctly completed to the passenger a reasonable time before the passenger boards the Aircraft. In the event of failure to comply with proviso (i) or (ii) the liability of the Insurers under this Section shall not exceed the amount of the legal liability, if any, that would have existed had the proviso been complied with.

2. Exclusions applicable to this Section only

The Insurers shall not be liable for injury (fatal or otherwise) or loss sustained by any

(a) director or employee of the Insured or partner in the Insured's business whilst acting in the course of his employment with or duties for the Insured;

(b) member of the flight, cabin or other crew whilst engaged in the operation of the Aircraft.

3. Limits of Indemnity applicable to this Section

The liability of the Insurers under this Section shall not exceed the amounts stated in Part 6(C) of the Schedule, less any amounts under Part 6(B). The Insurers will defray in addition any legal costs and expenses incurred with their written consent in defending any action which may be brought against the Insured in respect of any claim for compensatory damages covered by this Section, but should the amount paid or awarded in settlement of such claim exceed the Limit of Indemnity then the liability of the Insurers in respect of such legal costs and expenses shall be limited to such proportion of the said legal costs and expenses as the Limit of Indemnity bears to the amount paid for compensatory damages.

Proposer's Name (in full) ................................................................................................................

Address.............................................................................................................................................

Business or Occupation .................................................................................................................

DETAILS OF AIRCRAFT TO BE INSURED

AIRFRAME

ENGINE(S)

Make, Type & Series Number

Year of Construction

Date & No. of Current License or C. of A.

Licensed Passenger Seating Capacity

Declared Passenger Seating Capacity for the Purpose of Insurance

Identification Marks

Number and Type

Price of Aircraft & Date of Purchase

Present Value of Aircraft

Details of Extra Equipment and Accessories, if any

Total Declared Value for the purpose of Insurance

(including Standard Instruments
and Equipment

Details

Value

Please state fully:-

1. Purposes for which the Aircraft will be used .............................................................

Will the Aircraft be flown at night?...................................................................................

2. Geographical limits for which insurance is required ..................................................

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

3. By whom will the maintenance be carried out? ...........................................................
............................................................................................................................................

4. Where will the Aircraft usually be kept?........................................................................

Is this a licensed airfield?...................................................................................................

Is the Aircraft normally kept in a hangar? If so, state construction of hangar .................
............................................................................................................................................

5. Will the Aircraft be taxied by persons other than licensed pilot(s) or qualified engineers?
..............................................................................................................................................

6. Have you previously held an Aircraft Insurance Policy? If so, state name of Insurers. .....
................................................................................................................................................

7. Has any Insurer at any time:-

(a) Declined your proposal?..................................................................................................

(b) Cancelled or refused to renew your Policy? ..................................................................

8. Have you entered into any agreement or contract with any other party whereby liability is assumed or excluded in respect of the ownership or operation of the Aircraft?...............

PLEASE STATE DETAILS OF ALL ACCIDENTS AND/OR LOSSES DURING THE LAST FIVE YEARS

Year	No. of Aircraft owned and/or operated by Proposer	Damage to Aircraft		Third Party & Passenger Liability		Circumstances of Loss
Year	No. of Aircraft owned and/or operated by Proposer	No. of Accidents	Cost or Estimate	No. of Accidents	Cost or Estimate	Circumstances of Loss

ENTER BELOW FLYING RECORD OF PILOTS BY WHOM THE AIRCRAFT WILL BE FLOWN

Name	Age	Types of Acft flown and date of last flight	Flying hours			Licence			Nature and Cause of Accidents (if any) during last five years
Name	Age	Types of Acft flown and date of last flight	Day	Night	Last 12 mths	No.	Date of issue	Type

DETAILS OF INSURANCE REQUIRED

(Delete where not applicable)

Section I. ACCIDENTAL DAMAGE.

(a) Flight Risks. (b) Taxying Risks.

Section II. THIRD PARTY LEGAL LIABILITY.

Limit of Indemnity ............................................................................each Accident

Section III *LEGAL LIABILITY TO PASSENGERS.

Limit of Indemnity each person...............................................................................

Limit of Indemnity each person for baggage and personal articles.......................

*The limit of indemnity for each ACCIDENT equals the indemnity each person multiplied by the declared passenger seating capacity of the Aircraft.

Period for which insurance is required.................................................................... ........................

I/WE warrant that the aforementioned Aircraft is/are my/our property and the statements and particulars given are true, and that no material information has been withheld or suppressed, and I/we agree to accept a Policy subject to the terms, exclusions and conditions prescribed therein.

Date .................................................................. Signature of Proposer (s).............................................

The completion of this Proposal Form in no way binds the Proposer to complete an Insurance. Insurers reserve to themselves the right to decline any proposal without assigning a reason.

AVN 2A 1.10.96

AVIATION CANCELLATION SCALE

(applicable to Annual Policies)

1 month on risk... ....... ... . 20% annual premium

2 months on risk ... ..... .....30% annual premium

3 months on risk ... ..... .....40% annual premium

4 months on risk ... ..... ... .50% annual premium

5 months on risk... ...... .....60% annual premium

6 months on risk... ... .. ... .70% annual premium

7 months on risk ... ... .. ....75% annual premium

8 months on risk ... ... .. .....80% annual premium

9 months on risk... ... ... . ...85% annual premium

Over 9 months equivalent to Annual.

US SHORT RATE CANCELLATION TABLE

Days Per Cent Days Per cent

Insurance of one Insurance of one

in Force Year Premium in Force Year Premium

1.................................................................... 5 154-156...................................................................... 53

2.................................................................... 6 157-160 54

3- 4.................................................................... 7 161-164 55

5- 6.................................................................... 8 165-167 56

7- 8.................................................................... 9 168-171 57

9- 10.................................................................. 10 172-175 58

11- 12.................................................................. 11 176-178 59

13- 14.................................................................. 12 179-182 (6 months) 60

15- 16.................................................................. 13 183-187 61

17- 18.................................................................. 14 188-191 62

19- 20.................................................................. 15 192-196 63

21- 22.................................................................. 16 197-200 64

23- 25.................................................................. 17 201-205 65

26- 29.................................................................. 18 206-209 66

30- 32 (1 month)................................................. 19 210-214 (7 months) 67

33- 36.................................................................. 20 215-218 68

37- 40.................................................................. 21 219-223 69

41- 43.................................................................. 22 224-228 70

44- 47.................................................................. 23 229-232 71

48- 51.................................................................. 24 233-237 72

52- 54.................................................................. 25 238-241 73

55- 58.................................................................. 26 242-246 (8 months) 74

59- 62 (2 months)............................................... 27 247-250 75

63- 65.................................................................. 28 251-255 76

66- 69.................................................................. 29 256-260 77

70- 73.................................................................. 30 261-264 78

74- 76.................................................................. 31 265-269 79

77- 80.................................................................. 32 270-273 (9 months) 80

81- 83.................................................................. 33 274-278 81

84- 87.................................................................. 34 279-282 82

88- 91 (3 months)............................................... 35 283-287 83

91- 94.................................................................. 36 288-291 84

95- 98.................................................................. 37 292-296 85

99-102................................................................. 38 297-301............................................................................ 86

103-105................................................................ 39 302-305 (10 months) 87

106-109................................................................ 40 306-310............................................................................. 88

110-113................................................................ 41 311-314............................................................................. 89

114-116................................................................ 42 315-319............................................................................. 90

117-120................................................................ 43 320-323............................................................................. 91

121-124 (4 months)............................................. 44 324-328............................................................................. 92

125-127................................................................ 45 329-332............................................................................. 93

128-131................................................................ 46 333-337 (11 months)............................................................................. 94

132-135................................................................ 47 338-342............................................................................. 95

136-138................................................................ 48 343-346............................................................................. 96

139-142................................................................ 49 347-351............................................................................. 97

143-146................................................................ 50 352-355............................................................................. 98

147-149................................................................ 51 356-360............................................................................. 99

150-153 (5 months)............................................. 52 361-365 (12 months) 100

AVN 4A CANADIAN SHORT RATE CANCELLATION TABLE FOR INSURANCES WRITTEN FOR ONE YEAR

Days Insurance in Force	Per cent of One Year Premium	Days Insurance in Force	Per cent of One Year Premium
1 ........................................................ 2 2 ............................. .......................... 4 3 .................. ..................................... 5 4 ................ ....................................... 6 5 ........................................................ 7 6 ........................................................ 8 7 ....................................................... 9 8 ............................. ........................... 9 9 ........................................................ 10 10 ....................................................... 10 11 ...................................................... 11 12 ................... ................................... 12 13 ....................................................... 13 14 ....................................................... 13 15 .................. .................................... 14 16 .................. .................................... 14 17 .................. .................................... 15 18 .................. .................................... 16 19 ....................................................... 16 20 ....................................................... 17 25 ................... ................................... 19 30 Or 1 month..................................... 20 35 ........................................................ 23 40 ........................................................ 26 45 ........................................................ 27 50 ................... .................................... 28		55 ......................................................... 29 60 Or 2 months. ................................... 30 65 ......................................................... 33 70 ......................................................... 36 75 ........................................................ 37 80 ........................................................ 38 85 ........................................................ 39 90 Or 3 months...................................... 40 105 ....................................................... 45 120 Or 4 months................................... 50 135 ...................................................... 55 150 Or 5 months.................................... 60 165 ...................................................... 65 180 Or 6 months... ............................... 70 195 ....................................................... 73 210 Or 7 months.. ................................. 75 225 ...................................................... 78 240 Or 8 months.. ................................. 80 255 ........................................................ 83 270 Or 9 months. .................................. 85 285 ....................................................... 88 300 Or 10 months. ................................. 90 315 ....................................................... 93 330 Or 11 months.. ................................ 95 360 Or 12 months.... ............................... 100

When a Policy is cancelled and the percentage for the exact period for which it has run is not shown in the above Table the next highest percentage shall be used for the purpose of calculating the Earned Premium.

COMPONENT PARTS CLAUSE

It is understood and agreed that in the event of loss or damage to any Component Part of the Aircraft detailed below Insurers' liability shall not exceed the percentage of the total value of the Aircraft as shown in the Policy Schedule relating to that Component Part as shown on the Scale attached to this Clause. Such percentage shall include the cost of labour, material, replacement part, transportation and other incidental charges incurred in reinstating such loss or damage but, the cost of transportation shall not exceed 15 per cent of the total value set against the Component Part.

The Insurers will in addition pay the cost of dismantling, inspecting, reassembling and transportation of undamaged parts as may be necessary and the test flying of the Aircraft up to 5 per cent of any admitted claim hereunder but not exceeding 2 per cent of the value of the Aircraft as stated in the Policy Schedule. Provided always that the total liability of the Insurers shall not exceed the value of the Aircraft as stated in the Policy Schedule.

In the event that a Component Part is no longer available the liability of the Insurers shall be limited to the percentage values as detailed on the attached Scale or the manufacturer's last published list price for such Component Part whichever is the lesser.

It is understood and agreed that, except as specifically provided in the foregoing to the contrary, this Clause is subject to the terms, exclusions, conditions and limitations of the Policy to which -it is attached.

Aircraft ………………………………………………….. Registration …………………………………

AVN 4A 4.2.02

SPECIMEN

Aircraft ………………………… Registration..................................

SCALE

SPECIFIED COMPONENT

QUANTITY

PERCENTAGE OF AIRCRAFT VALUE

EACH

ALL

AVN 4A 4.2.02

It is hereby understood and agreed that the premium shall be paid in the following installments:-

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

Nevertheless it is further understood and agreed that:-

Notwithstanding any provision as to notice of cancellation contained in this Policy, it is a condition that in the event of any installment not being paid by its due date the cover afforded by this Policy shall be deemed to have ceased at midnight of such due date.

In the event of a claim hereunder which exceeds the installments of premium paid on this Policy the installments of premium then outstanding shall become payable forthwith.

AVN 5A 9.10.74

1) It is understood and agreed that the premium due at the inception of this Policy shall be payable in the following installments:

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

2) In the event of a claim hereunder which exceeds the installments of premium paid on this Policy, the installments of premium then outstanding shall become payable forthwith.

3) Notwithstanding any cancellation provision contained within the Policy, in the event that an installment of premium is not paid by its due date Insurers shall have the right to terminate the cover afforded by the Policy to the Insured and any other party(ies) protected thereby, whether by endorsement or otherwise, by the giving of not less than Thirty (30) days notice in writing to the Appointed Broker. Notice shall be deemed to commence from the date such notice is given by the Insurers.

Appointed Broker:

AVN 6A 17.10.96

It is understood and agreed that in the event of a claim arising hereunder adjustable on the basis of a Total Loss the Full Annual Premium of , less the amount of premium already paid, shall become due and payable forthwith.

AVN 8 1.10.96

It is understood and agreed that in the event of a claim arising hereunder which exceeds the premium paid the balance of the Full Annual Premium of shall become due and payable forthwith.

AVN 9 1.10.96

It is understood and agreed that in the event of the Aircraft sustaining damage covered under the Aircraft loss or physical damage Section of this Policy the liability of the Insurers for Transportation Costs shall not exceed 15% of the Admitted Cost of repairing such damage. Provided always that any amount payable under this Clause shall not increase the limit of the Insurers' liability beyond the value of the Aircraft as stated in the Policy Schedule.

For the purpose of this Clause

1. "Transportation Costs" shall be deemed to mean the aggregate of the cost of

(a) removing the Aircraft to a repair site;

(b) transporting such labor, replacement parts, material and equipment as may be required to make good damage covered by this Policy;

(c) returning the Aircraft from the repair site to the airfield nearest to the place of accident or to its home airfield, whichever may be the nearer.

In all cases the liability of the Insurers shall be limited to the cost of transportation by the least expensive means which in respect of the transportation of labor shall take into account wages and subsistence payable during transit.

2. The "Admitted Cost" of repairing the damage shall be deemed to mean the aggregate of the cost of

(d) labor;

(e) replacement parts and material (ex the nearest place where such parts and material are normally stocked) to make good the damage covered by this Policy, including the cost of any necessary dismantling required for inspection and repairs;

(f) reassembly.

AVN 11A 4.2.02

Notwithstanding the inclusion herein of more than one Insured, whether by endorsement or otherwise, the total liability of the Insurers in respect of any or all Insureds shall not exceed the limit(s) of liability stated in this Policy.

AVN 14 1.10.96

It is hereby understood and agreed that this Insurance is extended to cover the under mentioned as additional Insured(s), but only in respect of the coverage provided under this Policy.

It is further understood and agreed that notwithstanding the inclusion herein of more than one Insured, the total liability of the Insurers in respect of any or all Insureds shall not exceed the limit(s) of liability stated in this Policy.

Subject otherwise to all the terms, conditions, exclusions and limitations of the Policy.

In consideration of the foregoing the sum of .......................................... is paid hereon as an additional premium.

Additional Insured(s):

AVN 15 1.10.96

(Approved by Lloyd’s Aviation Underwriters’ Association)

WE, UNDERWRITERS AT LLOYDS, London, agree with the Insured, named in the Declarations made a part hereof, in consideration of the payment of the premium and in reliance upon the statements in the Declarations and subject to the limits of liability, Exclusions, Conditions and other Terms of this Policy:-

INSURING AGREEMENTS

1. COVERAGE A – FLIGHT, TAXING, ON THE GROUND OR MOORED.

To pay for direct physical loss of or damage to the aircraft including disappearance if the aircraft is unreported for sixty (60) days after the commencement of flight but only for the amount of each separate loss less the applicable deductible stated in Item 3 of the Declarations.

2. COVERAGE B – TAXING, ON THE GROUND OR MOORED.

To pay for direct physical loss of or damage to the aircraft while not in flight but only for the amount of each separate loss less the applicable deductible stated in Item 3 of the Declarations.

3. COVERAGE C – ON THE GROUND OR MOORED.

To pay for direct physical loss of or damage to the aircraft while not in flight or taxying but only for the amount of each separate loss less the applicable deductible stated in Item 3 of the Declarations.

4. POLICY PERIOD, TERRITORY, PURPOSES OF USE.

This Policy applies only to direct physical loss of or damage to the aircraft which is sustained during the Policy period while the aircraft is within the Continental limits of the United States of America (excluding Alaska), Canada, or the Republic of Mexico, or is being transported between ports thereof, and is owned, maintained and used for the purpose stated as applicable thereto in the Declarations.

5. TWO OR MORE AIRCRAFT.

When two or more aircraft are insured hereunder the terms of this Policy shall apply separately to each.

EXCLUSIONS

THIS POLICY DOES NOT APPLY:–

(a) to loss of use, depreciation, or deterioration; nor to any damage which is due and confined to wear and tear, freezing, mechanical, structural, electrical, hydraulic or pneumatic breakdown or failure, but this exclusion shall not apply to (1) other loss or damage covered by this Policy resulting from such wear and tear, freezing, mechanical, structural, electrical, hydraulic or pneumatic breakdown, (2) such loss or damage by wear and tear, freezing, mechanical, structural, electrical, hydraulic or pneumatic breakdown or failure which results directly from other loss covered by this Policy.

(b) to loss or damage due to (1) capture, seizure, arrest, restraint or detention or the consequences thereof or of any attempt thereat, or any taking of the property insured or damage to or destruction thereof by any Government or Governmental or Civil Authority or agent (whether secret or otherwise) or by any military, naval or usurped power, whether any of the foregoing be done by way of requisition or otherwise and whether in time of peace or war and whether lawful or unlawful; (2) war, invasion, civil war, revolution, rebellion, insurrection or warlike operations, whether there be a declaration of war or not; (3) strikes, riots or civil commotions.

(c) to loss or damage due to wrongful conversion, embezzlement or secretion of the aircraft by any person in lawful possession thereof under a licence, lease, mortgage, conditional sale or other agreement, or under an agreement with the Insured, whether written, oral or implied.

(d) while the aircraft is in flight unless its Airworthiness Certificate is in full force and effect.

(e) while the aircraft is used for any unlawful purpose or is operated otherwise than in compliance with the terms of its Airworthiness Certificate and the approved operating limitations contained in its Airplane Flight Manual or other documents associated with the Airworthiness Certificate, or is being operated by any person other than the pilot(s) stated in Item 5 of the Declarations (other than taxying by certificated pilots or licensed mechanics) or is operated by any such person in violation of the terms and limitations of his Pilot's Certificate or Medical Certificate, as issued by the appropriate authority.

(f) if the total number of passengers carried in the Aircraft at the time of the happening of any loss or damage exceeds the Declared Maximum Number of Passengers stated in Item 3 of the Declarations

(g) while with the knowledge and consent of the Insured or of any executive officer or partner if the Insured be a corporation or partnership the aircraft is being operated in violation of the Civil Air Regulations applying to acrobatic flying, instrument flying, repairs, maintenance, inspection, alterations and night flying.

(h) while the aircraft is used for any purpose other than as stated in the Declarations.

(i) while the aircraft is being used for or in connection with any race, speed or endurance test, any attempt at record breaking, acrobatic flying, crop dusting, spraying, seeding, fertilisation, hunting, bird or fowl herding, unless such use is declared in (D) of Item 4 of the Declarations; or any use in respect to which a waiver or special authority issued by the Civil Aeronautics Authority or the appropriate Authority is required, whether granted or not.

(j) while the aircraft is changed or converted into a type other than stated in the Declarations.

(k) following a transfer of the interest of the Insured in the aircraft without the written consent of the Underwriters; or whilst the aircraft is subject to any lien, mortgage or other encumbrance not specifically declared and described in this Policy.

DEFINITIONS

"AIRCRAFT". The word "Aircraft" wherever used in this Policy, shall mean the aircraft described herein, and in addition to the airframe shall include power plants, propellers, rotors and appliances forming part of the aircraft at the inception of coverage hereunder, including parts detached and not replaced by other similar parts.

"IN FLIGHT". The aircraft shall be deemed to be in flight from the time the aircraft moves forward in taking off or in attempting to take off for air transit, while in the air and until the aircraft comes to rest after landing or, the landing run having been safely completed, power is applied for taxying. A rotorcraft shall be deemed to be in flight when the rotors are in motion.

"TAXYING" shall mean while the aircraft is moving under its own power or momentum generated thereby other than in flight as defined, but in the case of water alighting aircraft "Taxying" shall be deemed to mean while the aircraft is afloat and is not "In Flight" or "Moored".

"MOORED" shall mean while the aircraft is afloat and made fast to its moorings, or is being launched or hauled up.

"CIVIL AERONAUTICS AUTHORITY" shall mean the duly constituted Authority of the government of the United States of America, or the authority of the recognised government of any other country in which this policy may apply, having jurisdiction over Civil Aviation.

CONDITIONS

1. INSURED'S DUTIES WHEN LOSS OCCURS.

When loss occurs, the Insured shall

(a) take all reasonable measures to protect the aircraft, whether or not the loss is covered by this Policy, and any further loss due to the Insured's failure to do so shall not be recoverable under this Policy; reasonable expense incurred in affording such protection, provided the loss is covered by this Policy, shall be deemed incurred at the Underwriters' request.

(b) give notice thereof as soon as practicable to the Underwriters and also in the event of theft, larceny, robbery, pilferage or vandalism, to the Police. The Underwriters shall not be responsible for the payment of a reward offered for the recovery of the insured property unless authorized by the Underwriters or their representatives.

(c) file proof of loss with the Underwriters' representatives within sixty (60) days after the occurrence of loss, unless such time is extended in writing by the Underwriters, in the form of a sworn statement of the Insured setting forth the interest of the Insured and of all others in the property affected, any encumbrances thereon, the actual cash value thereof at the time of loss; the amount, place, time and cause of such loss, the amount of all insurance whether valid and collectible or not, covering said property; and the Insured as often as required shall submit to examination under oath by any person named by the Underwriters and subscribe the same; upon the request of the Underwriters the insured shall exhibit the damaged property to the Underwriters or their representatives, and as often as required shall produce for examination all logbooks, and all books of accounts, bills, invoices, and other vouchers, or certified copies thereof if the originals be lost, at such reasonable place as may be designated by the Underwriters or their representatives and shall permit extracts and copies thereof to be made.

2. ASSISTANCE AND CO-OPERATION OF THE INSURED.

The Insured shall co-operate with the Underwriters and, upon the Underwriters' request, shall attend hearings and trials and shall assist in effecting settlements, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of suits. The Insured shall not, except at his own cost, voluntarily make any payment, assume any obligation or incur any expense.

3. LIMIT OF LIABILITY; SETTLEMENT OPTIONS; NO ABANDONMENT.

The liability of the Underwriters for direct physical loss of or damage to the aircraft shall not exceed the amount of insurance set out in the Declarations, less the applicable deductible, nor what it would cost to repair or replace the aircraft or parts thereof with other of like kind and quality, and without compensation for loss of use. The Underwriters may pay for the loss in money or may repair or replace the aircraft or parts thereof, as aforesaid, or may return any stolen property with payment for any resultant damage thereto at any time before the loss is paid or the property is so replaced, or may take all or such part of the aircraft at the agreed or appraised value, but there shall be no abandonment to the Underwriters.

In the case of partial physical loss of or damage to the aircraft when repairs are effected by the Insured the liability of the Underwriters shall not exceed the actual cost of any parts or materials necessary to effect repairs or replacement plus 150% of the actual cost of labour to the Insured without any further allowance for overhead or overtime; when the repairs are made by other than the Insured, the actual costs as evidenced by bills rendered to the Insured, less any discount granted to the Insured, excluding cost of overtime and its related overhead unless previously agreed to by the Underwriters. The amount of such loss shall include the cost of transporting new or damaged parts or of transporting the damaged aircraft to the place of repair and subsequent return to the airport nearest to the place of accident, or home airport, whichever be the nearer, but shall be limited to the least expensive method of reasonable transportation.

In no event shall the liability of the Underwriters for partial physical loss of or damage to the aircraft exceed the amount for which the Underwriters would be liable were the loss payable as a total loss.

4. SUBSTITUTIONS.

Power plant and/or propellers and/or rotors and/or appliances of like make or type may be substituted. The value of any such installed substituted item shall not exceed the value of the item originally installed unless endorsed hereon and any required additional premium paid hereon.

5. APPRAISAL.

If the Insured and the Underwriters fail to agree as to the amount of loss, each shall, on the written demand of either, made within sixty days after receipt of proof of loss by the Underwriters, select a competent and disinterested appraiser, and the appraisal shall be made at a reasonable time and place. The appraisers shall first select a competent and disinterested umpire, and failing for fifteen days to agree upon such umpire, then on request of the Insured or the Underwriters, such umpire shall be selected by a judge of a court of record in the county and state in which such appraisal is pending. The appraisers shall then appraise the loss, stating separately the actual cash value at the time of the loss and the amount of loss in respect of each item, and failing to agree, shall submit their differences to the umpire. An award in writing of any two shall determine the amount of loss. The Insured and the Underwriters shall each pay his or their chosen appraiser and shall bear equally the other expenses of the appraisal and umpire.

The Underwriters shall not be held to have waived any of their rights by any act relating
to appraisal.

6. OTHER INSURANCE.

If there be other insurance against loss or damage covered by this Policy, the Underwriters shall not be liable under this Policy for a greater proportion of such loss or damage than the amount of insurance stated in the Declarations bears to the total amount of valid and collectible insurance against such loss or damage.

7. NO BENEFIT TO BAILEE.

The insurance afforded by this Policy shall not enure directly or indirectly to the benefit of any carrier or bailee.

8. REINSTATEMENT.

In the event of loss whether or not covered by this Policy the amount of insurance in respect to any aircraft shall be reduced as of the time and date of loss by the amount of such loss and such reduced value shall continue until repairs are commenced. The insurance shall then be increased by the value of the completed repairs until the amount of insurance is fully reinstated or the Policy has expired.

9. SUBROGATION.

In the event of any payment under this Policy, the Underwriters shall be subrogated to all the Insured's rights of recovery therefor against any person or organisation and the Insured shall execute and deliver instruments and papers and do whatever else is necessary to secure such rights. The Insured shall do nothing after loss to prejudice such rights.

10. CHANGES.

Notice to any agent or knowledge possessed by any agent or by any other person shall not effect a waiver or a change in any part of this Policy or estop the Underwriters from asserting any right under this Policy; nor shall any part of this Policy be waived or changed, except by endorsement signed by the Underwriters and issued to form part of this Policy.

11. ASSIGNMENT.

12. CANCELLATION.

This Policy may be cancelled by the Insured by surrender thereof or by mailing to the Underwriters written notice stating when thereafter such cancellation shall be effective. This Policy may be cancelled by the Underwriters by mailing to the Insured at the address shown in this Policy written notice stating when not less than ten days thereafter such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice and the effective date and hour of cancellation stated in the notice shall become the end of the Policy period. Delivery of such written notice either by the Insured or by the Underwriters shall be equivalent to mailing.

If the Insured cancels, earned premiums shall be computed in accordance with the customary short rate table and procedure. If the Underwriters cancel, earned premiums shall be computed pro-rata. Premium adjustment may be made at the time cancellation is effected and, if not then made, shall be made as soon as practicable after cancellation becomes effective. The Underwriters' check or the check of their representative mailed or delivered as aforesaid shall be sufficient tender of any refund of premium due to the Insured.

No Return Premium shall be paid to the Insured as to any aircraft on which a loss under this Policy, adjustable on the basis of a total loss, has occurred.

13. TERMS OF POLICY CONFORMED TO STATUTE.

Terms of this Policy which are in conflict with the statutes of the state wherein this Policy has application are hereby amended to conform to such statutes.

14. ACTION AGAINST UNDERWRITERS.

No action shall lie against the Underwriters unless as a Condition precedent thereto the Insured shall have fully complied with all the terms of this Policy nor until sixty days after proof of loss shall have been filed and the amount of loss shall have been determined as provided in this Policy nor unless such action shall have been commenced within twelve months next after the happening of the loss.

15. SERVICE OF SUIT.

It is agreed that in the event of the failure of the Underwriters to pay any amount claimed to be due hereunder, the Underwriters, at the request of the Insured, will submit to the jurisdiction of any court of competent jurisdiction within the United States and will comply with all requirements necessary to give such Court jurisdiction and all matters arising hereunder shall be determined in accordance with the law and practice of such Court.

It is further agreed that service of process in such suit may be made upon ............................................................................................................................., and that in any suit instituted against any one of them upon this Policy, the Underwriters will abide by the final decision of such Court or of any Appellate Court in the event of an appeal.

The above-named are authorized and directed to accept service of process on behalf of the Underwriters in any such suit and/or upon the request of the Insured to give a written undertaking to the Insured that they will enter a general appearance upon the Underwriters' behalf in the event such a suit shall be instituted.

Further, pursuant to any statute of any state, territory or district of the United States which makes provision therefor, the Underwriters hereby designate the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute or his successor or successors in office, as their true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the Insured or any beneficiary hereunder arising out of this Policy and hereby designate the above-named as the person to whom the said officer is authorized to mail such process or a true copy thereof.

16. SCHEDULE OF STATEMENTS.

By acceptance of this Policy the Insured agrees that the statements in the Declarations are his agreements and representations, that this Policy is issued in reliance upon the truth of such representations and that this Policy embodies all agreements existing between himself and the Underwriters relating to this insurance.

17. MISREPRESENTATION AND FRAUD.

This Policy shall be void if the Insured has concealed or misrepresented any material fact or circumstance whether under the Declarations or not concerning this insurance or the subject thereof or in the case of any fraud, attempted fraud or false swearing by the Insured touching any matter relating to this insurance or the subject thereof, whether before or after a loss.

DECLARATIONS

ITEM 1.

Name of Insured .................................................................................................................................

(hereinafter referred to as the Insured.)

Address ...............................................................................................................................................

Business or Occupation of the Insured is ......................................................................................

The Insured's interest in the Aircraft is that of ....................................................................................

Amount of Mortgage or Encumbrance, if any, $ ...............................................................................

If the aircraft is mortgaged or encumbered any loss covered hereunder is payable as interest may appear to the Insured and .........................................................................................................................................

ITEM 2.

The period of insurance hereunder begins on the ............................................................................

and ends on the ......................(both at 12.01 a.m. Standard Time at the Insured's address as stated.)

ITEM 3.

The insurance afforded is only with respect to such and so many of the following coverages as are indicated by specific premium charge or charges. The limit of Underwriters' liability against each such coverage shall be the amount of insurance as stated herein, (less the stated deductible each loss each aircraft) subject to all the terms of the Policy having reference thereto;

COVERAGES (As described in the Insuring Agreements)

(A) Flight, Taxying, On the Ground or Moored.

(B) Taxying, On the Ground or Moored.

DESCRIPTION OF AIRCRAFT AND AMOUNT OF INSURANCE

Identification Marks.	Category.	Year built, Make, Model, Serial No.	Type*

* Landplane, seaplane, skiplane, amphibian or rotorcraft.

Engine, H.P.,

Make, Model.

Amount of Insurance.

Declared Maximum Number of Passengers to be carried at any one time.

Coverage.

(A, B or C)

PREMIUM.

TOTAL PREMIUM $

DEDUCTIBLES

Flight $ }

Taxying $ } Not applicable to Total Loss of the Aircraft.

Ground $ }

Moored $ } Not applicable to Total Loss of the Aircraft, or fire or theft.

In the case of rotorcraft the Flight Deductible shall apply while the rotors are in motion.

ITEM 4.

USE: The purposes for which the aircraft will be used are (Indicate those required.)

(A) □ "BUSINESS AND PLEASURE"

(B) □ "INDUSTRIAL AID"

(D) □ "COMMERCIAL", including special uses (See (D) below)

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

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

(A)	"BUSINESS AND PLEASURE" shall mean personal, pleasure, family and business use, excluding any operation for hire or reward, or for instruction.
(B)	"INDUSTRIAL AID" shall mean all the uses stated in (A) also the transportation of executives, employees, guests of the Insured, goods and merchandise, but excluding any operation for hire or reward, or for instruction.
(C)	"LIMITED COMMERCIAL" shall mean all the uses stated in (A) and (B) also the carriage of passengers and freight for hire or reward, but excluding any form of instruction or rental to others.
(D)	"COMMERCIAL" shall mean the uses stated in (A), (B) and (C) also use for any other purpose as specifically declared above.

ITEM 5.

The Aircraft will be operated in flight only by the following pilot(s):

Name	Certificate and Number	Pilot and Aircraft Ratings

ITEM 6.

No Insurer has ever cancelled or declined to issue or renew, any aircraft insurance to the Insured, except as follows:

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

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

AVN 16 6.11.56

(Applicable to Hull only)

1. The insurance afforded by this Policy is automatically extended to include at pro rata additional premium further Aircraft added during the currency of this Policy provided such Aircraft are owned or operated by the Insured and are of the same type and value as Aircraft already covered hereunder.

2. The inclusion of additional Aircraft of other types or different values shall be subject to special agreement and rating by Insurers prior to attachment.

3. Aircraft which have been sold or disposed of shall be deleted from this Policy and the Insured shall be entitled to pro rata return of premium provided no claim has arisen and become payable under this Policy in respect of such Aircraft, and that this Policy is not cancelled by virtue of such deletion.

ALWAYS PROVIDED THAT:-

(i) Notwithstanding the foregoing provisions for additions and deletions the premium in respect of each separate period of Flight Risk Insurance on any Aircraft covered during the currency of this Policy shall in no case be less than fifteen days' pro rata premium.

(ii) In the event of a claim arising in respect of any Aircraft added hereto being settled on a total loss basis full twelve months' premium shall be paid hereunder in respect of such Aircraft.

(iii) Notice of the addition or deletion of any Aircraft under the provisions of Paragraphs 1 and 3 respectively shall be given to the Insurers or their representatives in writing within ten days of attachment or deletion.

AVN 17A 1.10.96

(Applicable to Liability only)

2. The inclusion of additional Aircraft of other types or greater seating capacity shall be subject to special agreement and rating by Insurers prior to attachment.

3. Aircraft which have been sold or disposed of shall be deleted from this Policy and the Insured shall be entitled to pro rata return of premium.

4. Notwithstanding the foregoing provisions for additions and deletions the premium in respect of each separate period of Flight Risk Insurance on any Aircraft covered during the currency of this Policy shall in no case be less than fifteen days' pro rata premium.

5. Notice of the addition or deletion of any Aircraft under the provisions of Paragraphs 1 and 3 respectively shall be given to the Insurers or their representatives in writing within ten days of attachment or deletion.

AVN 18A 1.10.96

(Combined)

2. The inclusion of additional Aircraft of other types or different values or greater seating capacity shall be subject to special agreement and rating by Insurers prior to attachment-.'

3. Under the Aircraft loss or physical damage Section of this Policy Aircraft which have been sold or disposed of shall be deleted from this Policy and the Insured shall be entitled to pro rata return of premium provided no claim has arisen and become payable in respect of such Aircraft under the Aircraft loss or physical damage Section of this Policy and that this Policy is not cancelled by virtue of such deletion.

4. Under the liability Section(s) of this Policy Aircraft which have been sold or disposed of shall be deleted from this Policy and the Insured shall be entitled to pro rata return of premium

5. Provided always that

(i) Notwithstanding the foregoing provisions for additions and deletions the premium in respect of each separate period of Flight risk insurance on any Aircraft covered during the currency of this Policy shall in no case be less than fifteen days' pro rata premium.

(ii) In the event of a claim arising in respect of any Aircraft added hereto being settled on<a total loss basis the full twelve months' Aircraft loss or physical damage premium shall be paid hereunder in respect of such Aircraft.

(iii) Notice of the addition or deletion of any Aircraft under the provisions of Paragraphs 1, 3 and 4 respectively shall be given to the Insurers or their representatives in writing within ten days of attachment or deletion.

AVN 19A 18.3.02

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

WE, UNDERWRITERS AT LLOYD'S, London, agree with the Insured, named in the Declarations made a part hereof, in consideration of the payment of the premium and in reliance upon the statements in the Declarations and subject to the limits of liability, Exclusions, Conditions and other Terms of this Policy.

INSURING AGREEMENTS

I. COVERAGE A—BODILY INJURY LIABILITY (EXCLUDING PASSENGERS)

To pay on behalf of the Insured all sums which the Insured shall become legally obligated to pay as damages, including damages for care and loss of services, because of bodily injury, sickness or disease, including death at any time resulting therefrom, sustained by any person, excluding any passenger, caused by an occurrence and arising out of the ownership, maintenance or use of the Aircraft.

COVERAGE B—PROPERTY DAMAGE LIABILITY

To pay on behalf of the Insured all sums which the Insured shall become legally obligated to pay as damages because of injury to or destruction of property, including the loss of use thereof, caused by an occurrence arid arising out of the ownership, maintenance or use of the Aircraft.

COVERAGE C—PASSENGER BODILY INJURY LIABILITY

To pay on behalf of the Insured all sums which the Insured shall become legally obligated to pay as damages, including damages for care and loss of services, because of bodily injury, sickness or disease, including death at any time resulting therefrom, sustained by any passenger, caused by an occurrence and arising out of the ownership, maintenance or use of the Aircraft.

COVERAGE D—SINGLE LIMIT-BODILY INJURY (INCLUDING PASSENGERS) AND PROPERTY DAMAGE LIABILITY

To pay on behalf of the Insured all sums which the Insured shall become legally obligated to pay as damages, including damages for care and loss of services, because of bodily injury, sickness or disease, including death at any time resulting therefrom, sustained by any person, and for damages because of injury to or destruction of property, including loss of use thereof, caused by an occurrence and arising out of the ownership, maintenance or use of the Aircraft.

COVERAGE E—SINGLE LIMIT—BODILY INJURY (EXCLUDING PASSENGERS) AND PROPERTY DAMAGE LIABILITY

To pay on behalf of the Insured all sums which the Insured shall become legally obligated to pay as damages, including damages for care and loss of services, because of bodily injury, sickness or disease, including death at any time resulting therefrom, sustained by any person, excluding any passenger, and for damages because of injury to or destruction of property, including loss of use thereof, caused by an occurrence and arising out of the ownership, maintenance or use of the Aircraft.

COVERAGE F—MEDICAL PAYMENTS

To pay all reasonable expenses incurred within one year from the date of accident for necessary medical, surgical, ambulance, hospital, professional nursing and funeral services, to or for each person except the pilot or crew unless specifically stated as "included" in the Declaration, who sustains bodily injury, sickness or disease, caused by accident, while in, entering or alighting from the Aircraft if the Aircraft is being used by the Named Insured or with his permission.

With respect to Insuring Agreements IV and V the insurance afforded by this coverage shall be excess insurance over any other valid and collectible medical payments insurance applicable thereto.

II. DEFENSE, SETTLEMENT, SUPPLEMENTARY PAYMENTS

Coverage A, B, C, D and E.

As respects such insurance as is afforded by the other terms of this Policy the Underwriters shall:

(a) defend in the name of and on behalf of the Insured any suit or other proceedings, even if groundless, false or fraudulent, brought against the Insured alleging such injury, sickness, disease or destruction and seeking damages on account thereof; but the Underwriters shall have the right to make such investigation, negotiation and settlement of any claim or suit as they deem expedient;

(b) pay all premiums on bonds to release attachments for an amount not in excess of the applicable limit of liability of this Policy, all premiums on appeal bonds required in any such defended suit, but without any obligation to apply for or furnish any such bonds;

(c) pay all costs taxed against the Insured in any such suit or proceedings and all interest accruing after entry of judgment until the Underwriters have paid, tendered or deposited in court, such part of such judgment as does not exceed the applicable limit of Underwriters' liability as stated herein; provided that in the event of the amount of such judgment exceeding the applicable limit of Underwriters' liability, the Underwriters shall only be liable to pay for that proportion of the said costs and interest which the applicable limit of Underwriters' liability bears to the amount of such judgment;

(d) pay expenses incurred by the Insured for such immediate medical and surgical relief to others as shall be imperative at the time of the accident;

(e) pay all expenses incurred by the Underwriters for investigation, adjustment and defense, and reimburse the Insured for all reasonable expenses, other than loss of earnings, incurred at the Underwriters' request.

The amounts incurred under this Insuring Agreement, except settlements of claims and suits, are payable by the Underwriters in addition to the applicable limit of liability of this Policy.

III DEFINITION OF INSURED

The term Named Insured shall mean only the Insured specified in Declaration 1.

The unqualified term Insured wherever used in this Policy with respect to Coverages A, B, C, D and E includes not only the Named Insured but also, within the scope of the Declarations, any person while using the Aircraft on behalf of or with approval of the Named Insured, or any person or organization legally responsible for its use, provided the actual use is with the expressed permission of the Named Insured.

Notwithstanding the provisions of this Insuring Agreement the coverage provided by this Policy for persons or organizations other than the Named Insured does not apply:—

(a) to any person or organization with respect to bodily injury, sickness, disease or death of any person who is a Named Insured;

(b) to any employee or official of an Insured with respect to any action brought against said employee or official because of bodily injury, sickness, disease or death of another employee of the same Insured injured in the course of such employment in an occurrence arising out of the maintenance or use of the Aircraft in the business of such Insured;

(c) to any person or organization, or to any agent or employee thereof (other than agents or employees of the Named Insured) engaged in the manufacture of aircraft, aircraft engines, or aircraft accessories, or operating an aircraft repair shop, airport, hangar, aircraft sales agency, flying club or flying school, with respect to any occurrence arising out of such manufacture or operation;

(d) to any person receiving instruction, either dual or solo, nor to any renter pilot, unless such use is declared in (D) of Item 4 of the Declarations;

(e) to any person or organization with respect to any loss against which he has other valid and collectible insurance.

IV TEMPORARY USE OF SUBSTITUTE AIRCRAFT

While an Aircraft owned by the Named Insured is withdrawn from normal use because of its breakdown, repair, servicing, loss or destruction, such insurance as is afforded by this Policy with respect to such Aircraft applies also with respect to another Aircraft of similar type, horsepower, and seating capacity, not so owned while temporarily used as the substitute for such Aircraft. This Insuring Agreement does not cover as an Insured the owner of the substitute Aircraft or any agent or employee of such owner.

V AUTOMATIC INSURANCE OF NEWLY ACQUIRED AIRCRAFT

(1) If the Named Insured who is the owner of the Aircraft the uses of which are declared under Item 4 of the Declarations acquires ownership of another Aircraft of similar type, horsepower, and seating capacity, and so notifies the Underwriters within thirty days following the date of its delivery to him, such insurance as is afforded by this Policy applies also to such Aircraft as of such delivery date;

(a) if it replaces an Aircraft described in this Policy, but only to the extent the insurance is applicable to the replaced Aircraft, or

(b) if it is an additional Aircraft and if the Underwriters insure all Aircraft owned by the Named Insured at such delivery date, but only to the extent the insurance is applicable to all such previously owned Aircraft. In no event, however, shall the Underwriters be liable under this provision for more than the highest limit applicable for each person or accident as stated in the Declarations of this Policy.

(2) This Insuring Agreement does not apply:

(a) to any loss against which the Named Insured has other valid and collectible insurance, or

(b) except during the Policy period, but if such delivery date is prior to the effective date of this Policy, the insurance applies as of such effective date.

The Named Insured shall pay the prescribed additional premium required because of the application of the insurance to such other Aircraft.

The insurance terminates upon the replaced Aircraft on such delivery date.

VI POLICY PERIOD, TERRITORY, PURPOSES OF USE

This Policy applies only in respect of accidents or occurrences happening during the Policy period while the Aircraft is within the Continental limits of the United States of America (excluding Alaska), Canada, or the Republic of Mexico, and is owned, maintained and used for the purposes stated as applicable thereto in the Declarations.

VII TWO OR MORE AIRCRAFT

When two or more Aircraft are insured hereunder the terms of this Policy shall apply separately to each.

EXCLUSIONS

THIS POLICY DOES NOT APPLY:-

(1) To liability assumed by the Insured under any contract or agreement unless such liability would have attached to the Insured even in the absence of such Agreement.

(2) While the Aircraft is in flight unless it's Airworthiness Certificate is in full force and effect.

(3) While the Aircraft is used for any unlawful purpose or is operated otherwise than in compliance with the terms of its Airworthiness Certificate and the approved operating limitations contained in its Airplane Flight Manual or other documents associated with the Airworthiness Certificate or is being operated by any person other than the pilot(s) stated in Item 5 of the Declarations (other than taxying by certificated pilots or licensed mechanics) or is operated by any such person in violation of the terms and limitations of his Pilot's Certificate or Medical Certificate, as issued by the appropriate authority.

(4) If the total number of passengers carried in the Aircraft at the time of the happening of any loss or damage exceeds the Declared Maximum stated in Item 3 of the Declarations.

(5) While with the knowledge and consent of the Insured or of any executive officer or partner if the Insured be a corporation or partnership the Aircraft is being operated in violation of the Civil Air Regulations applying to acrobatic flying, instrument flying, repairs, maintenance, inspection, alterations and night flying.

(6) While the Aircraft is used for any purpose other than as stated in the Declarations.

(7) While the Aircraft is being used for or in connection with any race, speed or endurance test, any attempt at record breaking, acrobatic flying, crop dusting, spraying, seeding, fertilization, hunting, bird or fowl herding unless such use is declared in (D) of Item 4 of the Declarations; or any use in respect of which a waiver or special authority issued by the Civil Aeronautics Authority or the appropriate Authority is required, whether granted or not.

(8) To bodily injury to or sickness, disease or death of any employee of the Insured arising out of and in the course of his employment, or to any obligation for which the Insured or any company as his insurer may be held liable under any workmen's compensation law.

(9) To injury to or destruction of property owned, rented, occupied or used by or in the care, custody or control of the Insured or carried in or on the Aircraft.

(10) To loss or damage or any liability of the Insured directly or indirectly occasioned by, happening through or in consequence of military, naval or usurped power whether in time of peace or war and whether lawful or unlawful, war, invasion, civil war, revolution, rebellion, insurrection or warlike operations, whether there be a declaration of war or not.

DEFINITIONS

"IN FLIGHT". The Aircraft shall be deemed to be in flight from the time the Aircraft moves forward in taking off or in attempting to take off for air transit, while in the air and until the Aircraft comes to rest after landing or, the landing run having been safely completed, power is applied for taxying. A rotorcraft shall be deemed to be in flight when the rotors are in motion.

"PASSENGER" shall mean any person while in, on or boarding the Aircraft for the purpose of riding or flying therein or alighting from the Aircraft following flight or attempted flight therein.

"CIVIL AERONAUTICS AUTHORITY" shall mean the duly constituted Authority of the government of the United States of America, or the Authority of the recognized government of my other country in which this Policy may apply, having jurisdiction over Civil Aviation.

"OCCURRENCE" shall mean an accident, or a continued or repeated exposure to conditions occurring during the Policy period, which results in injury during the Policy period, provided the injury is accidentally caused. All damages arising out of such exposure to substantially the same general conditions shall be deemed to arise out of one occurrence.

CONDITIONS

1. NOTICE OF ACCIDENT

When an accident or an occurrence takes place which is liable to result in a claim under this Policy, written notice shall be given by or on behalf of the Insured to the Underwriters or any of their representatives as soon as practicable. Such notice shall contain particulars sufficient to identify the Insured and also reasonably obtainable information respecting the time, place and circumstances of the accident or occurrence, the names and addresses of the injured and of available witnesses

2. NOTICE OF CLAIM OR SUIT—EXCEPT IN RESPECT TO COVERAGE F

If claim is made or suit is brought against the Insured the Insured shall immediately forward to the Underwriters or any of their representatives every demand, notice, summons or other process received by him or his representative.

3. MEDICAL REPORTS; PROOF AND PAYMENT OF CLAIM—IN RESPECT TO COVERAGE F ONLY

As soon as practicable, the injured person or someone on his behalf shall give to the Underwriters or any of their representatives written proof of claim, under oath if required, and shall, after each request from the Underwriters, execute authorization to enable the Underwriters to obtain medical reports and copies of records. The injured person shall submit to physical examination by physicians selected by the Underwriters when and as often as the Underwriters may reasonably require. The Underwriters may pay the injured person or any person or organization on account of the services rendered and such payment shall reduce the amount payable hereunder to or for such injured person for such injury. Such payment shall not constitute admission of liability of the Insured or of the Underwriters under any other Coverage hereunder.

4. ASSISTANCE AND CO-OPERATION OF THE INSURED EXCEPT IN RESPECT OF COVERAGE F

5. LIMITS OF LIABILITY

(a) The limit of liability stated in the Declarations for Coverage A and C as applicable to "each person" is the limit of the Underwriters' liability for all damages arising out of bodily injury, sickness or disease, including death at any time resulting therefrom, sustained by one person in any one occurrence; the limit of such liability stated as applicable to "each occurrence" is, subject to the above provision respecting each person, the total limit of the Underwriters' liability for all damages, arising out of bodily injury, sickness, or disease, including death at any time resulting therefrom, sustained by two or more persons in any one occurrence.

(b) The limit of liability stated in the Declarations for Coverage B is the limit of the Underwriters' liability for all damages arising out of any one occurrence.

(c) The limit of liability stated in the Declarations for Coverage D & E is the limit of the Underwriters' liability for all damages arising out of any one occurrence.

(d) The limit of liability stated in the Declarations for Coverage F as applicable to "each person" is the limit of the Underwriters' liability for all expenses incurred by or on behalf of each person who sustains bodily injury, sickness or disease, including death resulting therefrom, in any one accident; the limit of liability stated herein as applicable to "each accident" is, subject to the above provision respecting each person, the total limit of the Underwriters' liability for all expenses incurred by or on behalf of two or more persons who sustain bodily injury, sickness or disease, including death resulting therefrom in any one accident.

Notwithstanding the inclusion herein of more than one Insured whether by endorsement or otherwise, the total liability of the Underwriters under each Coverage in respect of any or all Insureds shall not exceed the limit(s) stated in the Declarations.

6. FINANCIAL RESPONSIBILITY LAWS—COVERAGES A, B, C, D AND E

Such insurance as is afforded by this Policy under coverage A, B, C, D and E shall comply with the provisions of any Financial Responsibility Law, or other Law applicable to Aircraft with respect to financial responsibility or liability arising out of the ownership, maintenance or use of Aircraft during the Policy period. However, the foregoing shall not apply to any type of coverage not afforded by this Policy nor shall it apply to any amount or amounts in excess of the limit or limits of liability provided in the Policy. The Insured agrees to reimburse the Underwriters for any payment made by the Underwriters which the Underwriters would not have been obligated to make under the terms of this Policy but for the agreement contained in this paragraph.

7. OTHER INSURANCE

If the Insured has other insurance against a loss covered by this Policy, the Underwriters shall not be liable under this Policy for a greater proportion of such loss than the applicable limit of liability stated in the Declarations bears to the total applicable limit of liability of all valid and collectible insurance against such loss; provided, however, the insurance under Insuring Agreement?) IV and V shall be excess insurance over any other valid and collectible insurance available to the Insured, either as an Insured under a Policy applicable with respect to the Aircraft or otherwise against a loss covered under either or both of said Insuring Agreements.

8. CHANGES

9. ASSIGNMENT

This Policy shall not be assigned in whole or in part except with the consent of the Underwriters verified by endorsement signed by the Underwriters and issued to form part of this Policy; if, however, the Named Insured shall die or be adjudged bankrupt or insolvent within the Policy period, this Policy, unless cancelled, shall, if written notice be given to the Underwriters within thirty days after the date of such death or adjudication, cover (a) the Named Insured's legal representative as the Named Insured and (b) under Coverage A, B, C, I) and E subject otherwise to the provisions of Insuring Agreement III, any person having proper temporary custody of the Aircraft, as an Insured, and under Coverage F while the Aircraft is used by such person, until the appointment and qualification of such legal representative but in no event for a period of more than thirty days after the date of such death or adjudication.

10. CANCELLATION

This Policy may be cancelled by the Named Insured by surrender thereof or by mailing to the Underwriters written notice stating when thereafter such cancellation shall be effective. This Policy may be cancelled by the Underwriters by mailing to the Named Insured at the address shown in this Policy written notice stating when not less than ten days thereafter such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice and the effective date and hour of cancellation stated in the notice shall become the end of the Policy period. Delivery of such written notice either by the Named Insured or by the Underwriters shall be equivalent to mailing.

If the Named Insured cancels, earned premiums shall be computed in accordance with the customary short rate table and procedure. If the Underwriters cancel, earned premiums shall be computed pro rata. Premium adjustment may be made at the time cancellation is effected and, if not then made, shall be made as soon as practicable after cancellation becomes effective. The Underwriters' check or the check of their representative mailed or delivered as aforesaid shall be sufficient tender of any refund of premium due to the Named Insured.

11. SERVICE OF SUIT

It is agreed that in the event of the failure of the Underwriters to pay any amount claimed to be due hereunder, the Underwriters, at the request of the Named Insured, will submit to the jurisdiction of any Court of competent jurisdiction within the United States and will comply with all requirements necessary to give such Court jurisdiction and all matters arising hereunder shall be determined in accordance with the law and practice of such Court.

It is further agreed that service of process in such suit may be made upon .....................................

..................................................................................................................................................................., and

that in any suit instituted against any one of them upon this Policy, the Underwriters will abide by the final decision of such Court or of any Appellate Court in the event of an appeal.

The above-named are authorized and directed to accept service of process on behalf of the Underwriters in any such suit and/or upon the request of the Named Insured to give written undertaking to the Named Insured that they will enter a general appearance upon the Underwriters' behalf in the event such a suit shall be instituted.

Further, pursuant to any statute of any state, territory or district of the United States which makes provision therefor, the Underwriters hereby designate the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute or his successor or successors in office, as their true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the Named Insured or any beneficiary hereunder arising out of this Policy and hereby designate the above-named as the person to whom the said officer is authorized to mail such process or a true copy thereof.

12. ACTION AGAINST UNDERWRITERS—COVERAGE A, B, C, D AND E

No action shall lie against the Underwriters unless, as a condition precedent thereto, the Insured shall have fully complied with all of the terms of this Policy, nor until the amount of the Insured's obligation to pay shall have been finally determined either by judgment against the Insured after actual trial or by written agreement of the Insured, the Claimant and the Underwriters. Any person or organization or the legal representative thereof who has secured such judgment or written agreement shall thereafter be entitled to recover under this Policy to the extent of the insurance afforded by this Policy. Nothing contained in this Policy shall give any person or organization any right to join the Underwriters as a co-defendant in any action against the Insured to determine the Insured's liability. Bankruptcy or insolvency of the Insured or of the Insured's estate shall not relieve the Underwriters of any of their obligations hereunder.

13. ACTION AGAINST UNDERWRITERS IN RESPECT TO COVERAGE F

No action shall lie against the Underwriters unless as a condition precedent thereto, there shall have been in full compliance with all the terms of this Policy, nor until thirty days after the required statements of claim have been filed with the Underwriters.

14. SCHEDULE OF STATEMENTS

By acceptance of this Policy the Named Insured agrees that the statements in the Declarations are his agreements and representations, that this Policy is issued in reliance upon the truth of such representations and that this Policy embodies all agreements existing between himself and the Underwriters relating to this insurance.

15. MISREPRESENTATION AND FRAUD

This Policy shall be void if the Named Insured has concealed or misrepresented any material fact or circumstance whether under the Declarations or not concerning this insurance or the subject thereof or in case of any fraud, attempted fraud or false swearing by the Insured touching any matter relating to this insurance or the subject thereof, whether before or after a loss.

DECLARATIONS

ITEM 1

Name of Insured ................................................................................................................................

(hereinafter referred to as the Insured)

Address ..............................................................................................................................................
..........................................................................................................................................................

Business or Occupation of the Insured is .........................................................................................

The Insured's interest in the Aircraft is that of .................................................................................

ITEM 2

The period of insurance hereunder begins on the..........................................................................
.and ends on the .......................... (both at 12.01 a.m. Standard Time at the Insured's address as stated).

ITEM 3

The insurance afforded is only with respect to such and so many of the following coverages as are indicated by specific premium charge or charges. The limit of Underwriters' liability against each such coverage shall be as stated herein, subject to all the terms of the Policy having reference thereto.

COVERAGES (As described in the Insuring Agreements)

LIMITS OF LIABILITY PREMIUMS

A BODILY INJURY LIABILITY $ each person
(excluding passengers) $ each occurrence

B PROPERTY DAMAGE LIABILITY $ each occurrence

C PASSENGER BODILY INJURY $ each person
LIABILITY $ each occurrence

D SINGLE LIMIT BODILY INJURY
including passengers) and PROPERTY
DAMAGE LIABILITY $ each occurrence

E   SINGLE LIMIT BODILY INJURY
(    excluding passengers) and
     PROPERTY DAMAGE LIABILITY      $                      each occurrence

F MEDICAL PAYMENTS

* Including/Excluding Pilot $ each person

* Including/Excluding Crew $ each accident

* Delete as required

Total Premium

DESCRIPTION OF AIRCRAFT

Identification Marks.

Category.

Year built, Make, Model Serial No.

Type*

Engine H.P., Make, Model,

Declared maximum number of passengers (excluding crew) to be carried at any one time.

Landplane, seaplane, skiplane, amphibian or rotorcraft

ITEM 4.

USE: The purposes for which the aircraft will be used are (Indicate those required.)

(A) □ "BUSINESS AND PLEASURE"

(B) □ "INDUSTRIAL AID"

(D) □ "COMMERCIAL", including special uses (See (D) below)

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

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

(A)	"BUSINESS AND PLEASURE" shall mean personal, pleasure, family and business use, excluding any operation for hire or reward, or for instruction.
(B)	"INDUSTRIAL AID" shall mean all the uses stated in (A) also the transportation of executives, employees, guests of the Insured, goods and merchandise, but excluding any operation for hire or reward, or for instruction.
(C)	"LIMITED COMMERCIAL" shall mean all the uses stated in (A) and (B) also the carriage of passengers and freight for hire or reward, but excluding any form of instruction or rental to others.
(D)	"COMMERCIAL" shall mean the uses stated in (A), (B) and (C) also use for any other purpose as specifically declared above.

ITEM 5.

The Aircraft will be operated in flight only by the following pilot(s):

Name

Certificate and Number

Pilot and Aircraft Ratings

ITEM 6.

No Insurer has ever cancelled or declined to issue or renew, any aircraft insurance to the Insured, except as follows:

AVN 20 1.11.64

It is hereby understood and agreed that in consideration of the insured Aircraft being covered on an Agreed Value basis all reference herein to replacement shall be deemed to be deleted but only in respect of claims adjusted on the basis of a total loss.

In respect of claims adjusted on the basis of a total loss Insurers shall pay to the Insured the Agreed Value of the Aircraft as stated in the Policy Schedule less any applicable deductible. Insurers may, at their discretion, take the salvage of such Aircraft, together with all appropriate documents appertaining thereto, but in no event shall there be any abandonment to Insurers.

The foregoing provision shall not apply to claims arising in respect of partial loss or damage where Insurers shall retain the right to repair, replace or make good as they deem expedient.

AVN 61 1.10.96

In consideration of an additional premium of .......................................... it is agreed that this Policy is extended to indemnify the Insured for any reasonable expenses incurred for the purpose of search and rescue operations for an Aircraft insured hereunder determined to be missing and unreported after the computed maximum endurance of the flight has been exceeded.

Provided always that Insurers' liability shall not exceed .................................. in respect of any one search and rescue operation and in the aggregate.

This clause does not extend the Policy to cover salvage costs and expenses.

All other terms and conditions of this Policy remain unchanged.

AVN 62 1.10.96

In consideration of an additional premium of .............................................. the inclusion of Additional Insureds under this Policy shall not preclude the right of recovery hereon by the Original Insured named below in respect of claims made against them by such Additional Insureds or the employees of such Additional Insureds.

Where the coverage provided by this Policy is also provided by other policy or policies, then this Policy shall only pay that amount which is in excess of the amount(s) which would have been payable under such other policy(ies) had this insurance not been effected.

Original Insured:

AVN 63 1.10.96

Notwithstanding anything herein contained to the contrary, it is a condition precedent to any liability under this Policy that

(a) the Reinsured shall, upon knowledge of any loss or losses which may give rise to a claim under this Policy, advise the Reinsurers thereof within 72 hours;

(b) the Reinsured shall furnish the Reinsurers with all information available respecting such loss or losses, and the Reinsurers shall have the right to appoint adjusters, assessors and/or surveyors and to control all negotiations, adjustments and settlements in connection with such loss or losses.

AVN 25 1.10.96

In the event of the Aircraft hereby insured being laid up, the Flight and Taxying cover under all Sections of this Policy shall be suspended during the period of lay-up and credit under the Aircraft loss or physical damage Section of the Policy will be adjusted on expiry of the Policy subject to the following conditions:-

1. Notice must be given to the Insurers by the Insured prior to and upon termination of lay-up.

2. No return of premium shall be made:-

(a) in respect of the period during which the Aircraft is laid up for maintenance, overhaul or repair;

(b) unless the period of lay-up is of at least 30 consecutive days, but should the period defined in (a) occur during lay-up then the Insured shall be entitled to add the lay-up days prior to and subsequent to the period defined in (a) in computing the period of 30 days or more for which a return may be made;

Subject always to the foregoing conditions the return shall be 75 per cent of pro rata of the difference between the annual Flight risk premium and the annual ground risk premium (as agreed by the Insurers) for the actual period of lay-up as defined above.

In the event of the Aircraft being laid up for a period of 30 days or more, a part only of which attaches to this Policy and part to the annual renewal Policy, then this Policy shall return premium proportionately.

AVN 26A 1.10.96

It is noted that the Party named in the Schedule hereto has a financial interest in the Aircraft under the Agreement. Accordingly, with respect to losses occurring during the period from the Effective Date of this Endorsement until the expiry of the Insurance or until the satisfaction of the obligations under the Agreement, whichever shall first occur, in respect of the interest of the Party and in consideration of an Additional Premium IT IS UNDERSTOOD AND AGREED THAT:

1. The insurance afforded by this Policy for loss of or physical damage to the insured Aircraft shall not be invalidated as regards the interest of the Party by any act or omission by the Insured which results in a breach of any term, condition or warranty of the Policy PROVIDED THAT the Party has not caused, contributed to or knowingly condoned the said act or omission. Nevertheless any change in title or ownership of the Aircraft, conversion, embezzlement or secretion by the Insured in possession of the Aircraft is not covered hereunder.

2. The protection afforded to the Party by the terms of this Endorsement shall be limited to loss of or physical damage to the insured Aircraft and shall not exceed the Original Amount under the Agreement less any relevant Policy Deductible and less all matured Instalments paid or due prior to the accident giving rise to a loss hereunder.

3. The Party shall notify the Insurers of any increase in hazard which comes to the Party's attention and if agreed by the Insurers it shall be endorsed on the Policy, the Party agreeing to pay any additional required premium if the Insured fails to do so on demand of the Insurers.

4. If the Insured fails to notify the Insurers as specified in the Policy Conditions of any event likely to give rise to a claim under the Policy, the Party shall do so immediately he becomes aware of the event in form and manner as prescribed by the Policy.

5. Upon payment of any loss or claim to the Party, Insurers shall to the extent and in respect of such payment be subrogated to all legal and equitable rights of the Party. At the expense of Insurers the Party shall do whatever is necessary to assist the Insurers to exercise such rights.

6. Except in respect of any provision for Cancellation or Automatic Termination specified in the Policy or any endorsement thereof, cover provided by this Endorsement may only be cancelled by Insurers giving not less than Thirty (30) days notice in writing to the Appointed Broker. Notice shall be deemed to commence from the date such notice is given by the Insurers. In the event of cancellation for non-payment of premium, the Party shall have the option to pay all outstanding premiums in respect of the Aircraft within the notice period.

EXCEPT AS SPECIFICALLY VARIED OR PROVIDED BY THE TERMS OF THIS ENDORSEMENT THE FINANCIAL INTEREST OF THE PARTY IS COVERED BY THE POLICY FOR LOSS OF OR PHYSICAL DAMAGE TO THE INSURED AIRCRAFT ONLY SUBJECT TO ALL TERMS, CONDITIONS, LIMITATIONS, WARRANTIES, EXCLUSIONS AND CANCELLATION PROVISIONS THEREOF.

SCHEDULE IDENTIFYING TERMS USED IN THIS ENDORSEMENT

1. Aircraft: Registration:

2. Party (enter the name of the Party having a financial interest):

3. Agreement (enter identifying details and date):

4. The Original Amount under the Agreement:

Payable in Instalments of

the last Instalment being due

The amount outstanding at the Effective Date of this Endorsement:

5. Policy Deductible:

6. Effective Date of this Endorsement:

7. Additional Premium

8. Appointed Broker:

AVN 28B 17.10.96

Agreed to include ..................................................... as an Additional Insured but only in so far as their interests arise as owners (in whole or in part) of the insured Aircraft.

This agreement shall not operate to prejudice Insurers' rights of recourse against................. ...................... as manufacturers, repairers, suppliers or servicing agents where such rights of recourse would have existed had this endorsement not been effected under this Policy.

AVN29 1.10.96

(For all types of rotorcraft, herein referred to as "helicopter")

PROPOSAL FORM

Proposer's Name (in full) ......................................................................................................................................

Any other name under which Proposer has operated or been associated with the operation of Helicopters

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

Address .............................................................................................................................................................

Business or Occupation .....................................................................................................................................

DETAILS OF HELICOPTER(S) TO BE INSURED

AIRFRAME										ENGINE(S)
Make, Type & Series Number		Year of Con-struction		Date & No. of Current Licence or Airworthiness Certificate	Licensed Passenger Seating Capacity		Declared Passenger Seating Capacity for the Purpose of Insurance	Identification Marks		1. Number and Type 2. Make of Rotor Blades





Price of Helicopter & Date of Purchase	Present Value of Helicopter		Details of Extra Equipment and Accessories, if any						Total Declared Value for the purpose of Insurance
			Details			Value
(including Standard Instruments and Equipment

AVN 30A 1.10.96

Please state fully:-

1. Precise purposes for which the Helicopter(s) will be used, in detail ("Commercial" or
"Industrial Aid" is insufficient). Before completing, see list at the end of this Form.
................................................................................................................................................
Will the Helicopter(s) be flown at night?........................If "Yes" give details of night flying
equipment in Helicopter(s) and on Landing Site(s) (on separate sheets).

2. (a) Geographical limits for which insurance is required (in detail)................................

(b) State if intended to operate over water more than 25 miles from land at any time
.......................................................................................................................................

(c) Give physical description of area of operations.................................................................
(e.g. Mountains—Desert—Jungle—Swamp)

3. By whom will the maintenance be carried out?.....................................................................

4. Where will the Helicopter(s) usually be kept? .......................................................................

Is this a licenced airfield?...............................................................................,............................

Will the Helicopter(s) normally be kept in a hangar? If so, state construction of hangar. .........

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

5. Give full details of surface of Aeroport, Heliport or Landing Ground from which
operations will be conducted...................................................................................................

6. Will Rotors be set in motion by persons other than licensed helicopter pilots or qualified
helicopter engineers?...............................................................................................................

7. Have you previously held a Helicopter Insurance Policy? If so, state name of Insurers..............

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

8. Has any Insurer at any time:-

(a) Declined your proposal?................................................................................................

(b) Cancelled or refused to renew your Policy? .................................................................

9. Have you entered into any agreement or contract with any other party whereby liability is assumed or excluded in respect of the purchase, lease, ownership or operation of the Helicopter(s)? If so, give relevant extract.

10. If the Helicopter(s) is/are being bought by Hire Purchase, or is/are the subject of a mortgage,
state Lienholder or Mortgagee and amount of lien or mortgage.

11. Will the helicopter(s) be operated with:

(a) Wheels ........... (b) Skis ..............(c) Pontoon Floats ...................... (d) Skids .................

PLEASE STATE DETAILS OF ALL ACCIDENTS AND/OR LOSSES DURING THE LAST FIVE YEARS

ENTER BELOW FLYING RECORD OF PILOTS BY WHOM THE HELICOPTER WILL BE FLOWN

Name and Nationality

Age

Types of Helicopter flown and date of last flight

Flying Hours

Licence

1. Nature and Cause of all Accidents (if any) during last five years

2. Give use at time of Accident by reference to list at the end of tins Form

Fixed wing aircraft

Helicopters

No.

Date of expiry

Where Issued

Type

Day

Night

Last 12 months

(N.B. Insurance afforded by the Policy, if issued, will be void when the Helicopter is
piloted by any pilot other than as named in the Policy.)

DETAILS OF INSURANCE REQUIRED

(Delete where not applicable)

HULL

Accidental Damage

(a) Flight Risks

b ) Ground Risks including/excluding rotors in motion

including/excluding rotors in motion

LIABILITIES

(U.K.)

Third Party Legal Liability

Limit of Indemnity ..........................................................................each Accident

*Legal Liability to Passengers

Limit of Indemnity each person .......................................................................................

Limit of Indemnity each person for baggage and personal articles..............................

* The limit of indemnity for each ACCIDENT equals the indemnity each person multiplied by the declared passenger seating capacity of the helicopter.

LIABILITIES

(USA and CANADA)

A BODILY INJURY LIABILITY
(excluding passengers)

B PROPERTY DAMAGE LIABILITY

C PASSENGER BODILY INJURY
LIABILITY

D SINGLE LIMIT BODILY INJURY
(including passengers) and
PROPERTY DAMAGE LIABILITY

E   SINGLE LIMIT BODILY INJURY
     (excluding passengers) and
     PROPERTY DAMAGE LIABILITY

F MEDICAL PAYMENTS
    * Including/Excluding Pilot
    * Including/Excluding Crew
    * Delete as required.

LIMITS OF INDEMNITY

$ each person

$ each occurrence

$ each person
$ each occurrence

$ each occurrence

$ each person

$ each accident

Period for which the Insurance is required .........................................................................................

I/WE warrant that the aforementioned helicopter(s) is/are my/our property except as may be declared under para. 10 above, and the statements and particulars given are true, and that no material information has been withheld or suppressed, and I/WE agree to accept a Policy subject to the terms, exclusions and conditions prescribed therein.

Date. Signature of Proposer (s).

The completion of this Proposal Form in no way binds the Proposer to complete an Insurance.

Insurers reserve to themselves the right to decline any proposal without assigning a reason.

LIST OF USES

1 Advertising.

2 Aerial Crop Control (state type of crop, tree or shrub
to be dusted, seeded or sprayed)

3 Air Taxi.

4 Cargo (a) slung (b) loaded on board. .

5 Contract Charter.

6 Erection (haulage and crane uses).

7 Executive Transportation.

8 Exhibition—Demonstration.

9 Ferry

10 Fire Patrol

11 Geophysical Survey (including use of Scintillometer
and/or Magnetometer and/or Electro magnetic Detector)

12. Industrial—Other Risks

13. Instructional

14. Offshore Drilling

15. Passengers—Non-Revenue

16. Passengers—Revenue (schedule stops)

17. Personal and Pleasure

18. Power and/or Pipeline Patrol

19. Rental

20. Rescue Operation (i.e. have you given any undertaking to a local authority or any other organization to perform rescue operations if and when called upon?)

21. Testing—Experimental

22. Training Check

23. Any other use—to be specified

AVN30A 1.10.96

It is hereby understood and agreed that this Policy shall not apply whilst the insured Glider is; being prepared for launching or actually being launched on or from a site other than a recognized aerodrome or a suitable site habitually used for the purpose of launching gliders and recognized and/or authorized for this purpose by the appropriated authorities.

AVN 32 1.10.96

1. In consideration of an additional premium of $____, it is agreed that the Insurers will at the request of and regardless of legal liability of the Named Insured offer settlement on the basis of the benefits hereinafter set forth in respect of bodily injury Accidentally sustained by any passenger provided that at the time of such Accident causing such bodily injury the Passenger Bodily Injury Liability of the Policy is effective in respect of such Accident.

2. LIMITS OF SETTLEMENT

For death or for total loss of two limbs or total loss of sight of two eyes or total loss of one limb and total loss of sight of one eye (or any combination thereof) the amount offered shall not exceed the amount expressed as the limit of settlement for "each passenger" shown below; or

For total loss of one limb or total loss of sight of one eye the amount offered shall not exceed one half of the amount expressed as the limit of settlement for "each passenger" shown below; or

For permanent total disablement other than by loss of limbs or sight the amount offered shall not exceed the amount expressed as the limit of settlement for "each passenger" shown below; or

Subject to the limit for "each passenger" the total of the amounts which the Insurers shall offer on account of bodily injury sustained by two or more passengers in any one Accident shall not exceed the amount expressed as the limit of settlement for "each Accident" shown below; or

3. DEFINITIONS

"ACCIDENT" means any one accident or series of accidents arising out of one event.

"LOSS OF A LIMB" means loss by physical separation of a hand at or above the wrist or of a foot at or above the; ankle.

"TOTAL LOSS OF SIGHT" means loss of sight which is certified as being entire and irrecoverable by a licensed physician specializing in ophthalmology.

"PERMANENT TOTAL DISABLEMENT" means disablement which has for twelve months from the date of the Accident necessarily and continuously disabled the passenger from attending to business or occupation of any and every kind or if he has no business or occupation confined him immediately and continuously to the house and prevented him from attending to any of his usual duties (if any) and at the expiry of that twelve months period being beyond hope of improvement.

4. ADDITIONAL EXCLUSIONS

The Insurers shall not be liable under the terms of this Endorsement

(a) for any payment which may be used to satisfy that obligation for which the Insured or any Company as his insurer may be held liable under workers compensation, employers liability, unemployment compensation or disability benefits law or any similar law;

(b) for bodily injury to any passenger caused by his suicide or attempted suicide or intentional self-injury or own criminal or felonious act or by his own act whilst in a state of insanity or intoxication;

(c) for bodily injury to any passenger caused by disease or natural causes, or medical or surgical treatment (except where such treatment is rendered necessary by bodily injury caused by Accident within the scope of this Endorsement);

(d) for bodily injury to any passenger carried for hire or reward;

(e) or bodily injury to any member of the flight or cabin crew.

ADDITIONAL CONDITIONS

(a) The Insured shall furnish, as soon as practicable after each request from the Insurers, reasonably obtainable information pertaining to bodily injury sustained by passengers. In the event of death immediate notice must be sent to the Insurers.

(b) In consideration of any settlement under the provisions of this Endorsement and as a condition precedent thereto, the Insurers shall be provided with a full legal release for all claims for damages against the Insured and/or any other party(ies) protected by this Policy from the injured passenger and/or any person having a cause of action for such bodily injury. If the injured passenger or any person claiming by, through or under him shall fail to accept in writing within thirty (30) days from the date of offering the voluntary settlement under the provisions of this Endorsement or to execute the necessary release then the Insurers may, at their option, withdraw the offered voluntary settlement, without notice, in which circumstances the Insurers will no longer be bound by the undertakings expressed in the preceding paragraphs. If subsequent to an offer of voluntary settlement being made in respect of any passenger any claim suit or demand is made or prosecuted against the Insured for damages on account of such bodily injury, such claim suit or demand shall be considered as refusal to accept such voluntary settlement and the obligations of the Insurers as expressed in the Passenger Liability Section of the Policy to which this Endorsement is attached, shall be available as fully and completely as if this Endorsement had not been issued.

Limits of Settlement

Each passenger Each Accident

It is understood and agreed that, except as specifically provided in the foregoing to the contrary, this Endorsement is subject to the terms, exclusions, conditions and limitations of the Policy to which it is attached.

The Schedule

Description of Aircraft

F.A.A. Reg. No.

Make, Model and Type*

Declared Maximum number

of Passengers to be carried

at any one time

* Landplane, Seaplane, Skiplane, Amphibian or Rotorcraft

Limits of Settlement

Each Passenger Each Accident

(FOR ATTACHMENT TO PASSENGER VOLUNTARY SETTLEMENT ENDORSEMENT)

(Approved by Lloyd’s Aviation Underwriters’ Association)

Notwithstanding anything contained herein to the contrary, it is understood and agreed that if in any accident resulting in a claim under this insurance the number of passengers in the aircraft exceeds the number stated in the Schedule forming part of the Passenger Voluntary Settlement Endorsement, then provided there is no violation of the limitations imposed by the Civil Aeronautics Authority and/or the Airworthiness Certificate as to seating capacity or maximum allowable gross weight, this insurance shall nevertheless remain effective, but the Limit of Settlement to be offered under the said Endorsement for death or loss of two limbs or loss of sight of two eyes or loss of one limb and loss of sight of one eye or permanent total disablement in respect of any passenger shall be calculated by dividing the “each accident” limit stated in the said Endorsement by the total number of passengers in the aircraft. The Limit of Settlement to be offered for loss of one limb or loss of sight of one eye shall also be reduced pro rata. Nevertheless this insurance shall be null and void in the event that the number of passengers carried in the aircraft at the time of the accident exceeds that declared in the Policy.

It is further understood and agreed that except as specifically provided in the foregoing to the contrary, this Clause is subject to the terms, exclusions, conditions and limitations of the policy to which it is attached.

AVN 36 5.12.61

Policy Schedule

Item 1. Name and Address of the Insured

Item 2. Policy Period

From To

Item 3. Hazards Covered

The Insured’s legal liability arising out of

as covered by and as more fully set forth in the Primary Policy

Item 4. Limits of Liability

(a) Combined Primary and Underlying Excess Limit(s)

(b) Total limit of liability under this Policy and the Primary and Underlying Excess Policies combined

Item 5. Primary and Underlying Excess Policy Details and Limits

Primary Insurers

Policy Number

Limit

Underlying Excess Insurers

Policy Number

Limit

Item 6. Premium

Item 7. Address for Notices

All notices required to be given by the terms and conditions of this Policy shall be given to

We the Insurers agree, to the extent and in the manner hereinafter provided, and in consideration of the payment of the Premium, to pay on behalf of the Insured all sums which the Insured shall become legally obligated to pay as damages in respect of bodily injury and/or property damage caused by an Occurrence during the Policy Period, and arising out of the Hazards Covered set forth in Item 3 of the Policy Schedule.

PROVIDED ALWAYS THAT:

1. Liability attaches to the Insurers only after the Primary and Underlying Excess Insurers have
paid or have been held liable to pay the full amount set forth in Item 4 (a) of the Policy
Schedule in respect of the Ultimate Net Loss and then

(a) the limit of liability under this Policy will be such amount of the Ultimate Net Loss as will provide the Insured with a total limit under the Primary and Underlying Excess Policies and this Policy combined as set forth in Item 4 (b) of the Policy Schedule; or

(b) if no amount is set forth in Item 4 (b) of the Policy Schedule the limit of liability under this Policy shall be such amount of the Ultimate Net Loss as set forth in Item 4 (c) of the Policy Schedule excess of the limit set forth in Item 4 (a) of the Policy Schedule.

2. The limit of liability under this Policy as stated in Item 4 of the Policy Schedule shall not be increased by the inclusion hereon of more than one Insured whether by endorsement or otherwise.

3. If any of the Hazards Covered by this Policy is subject to an aggregate limit of liability in the Primary Policy then the limit of liability under this Policy shall, as respects such hazard, apply in the aggregate for the Policy Period.

4. If the Hazards Covered by this Policy include liability arising out of the ownership, operation or use of aircraft by the Insured and if the Primary Policy provides that its terms apply separately to each such aircraft, then the terms of this Policy shall also, as respects that hazard, apply separately to each such aircraft.

Exclusions

This Policy does not apply:

1. To any loss suffered by the Insured as a result of the inability, refusal or failure to pay of the Primary and/or Underlying Excess Insurers for any reason whatsoever including, without limitation, any financial impairment, insolvency or liquidation.

2. To claims excluded by the attached Noise and Pollution and Other Perils Exclusion Clause.

3. To claims excluded by the attached Nuclear Risks Exclusion Clause.

4. To claims excluded by the attached War, Hi-Jacking and Other Perils Exclusion Clause.

5. To claims excluded by the attached Date Recognition Exclusion Clause.

6. To claims excluded by the attached Contracts (Rights of Third Parties) Act 1999 Exclusion Clause.

Definitions

1. “Ultimate Net Loss” means the amount payable in settlement of the liability of the Insured after making deductions for all recoveries and other valid and collectible insurances, excepting however the Primary and Underlying Excess Policies, and shall exclude all Excluded Costs and Permitted Costs.

2. “Excluded Costs” means all office expenses of the Insured, all expenses for salaried employees of the Insured and general retainer fees for Counsel normally paid by the Insured.

3. “Permitted Costs” means interest accruing after entry of judgement, investigation, adjustment and legal expenses (excluding however all expenses for salaried employees of the Insured and general retainer fees for Counsel normally paid by the Insured).

4. “Occurrence” shall be deemed to have the same meaning in this Policy as is attributed to it in the Primary Policy but, notwithstanding the foregoing, for the purposes of this Policy all legal obligations of the Insured to pay damages arising out of exposure to substantially the same general conditions shall be deemed to arise out of one Occurrence.

Conditions Precedent

It is necessary that the Insured observes and fulfils the following condition before the Insurers have any liability to make any payments under this Policy.

1. Maintenance of Primary and Underlying Excess Insurance

The Insured shall maintain the Primary and Underlying Excess Policies in full effect during the currency of this Policy except for any reduction of any aggregate limits contained therein solely by payment of claims in respect of Occurrences during the Policy Period stated in Item 2 of the Policy Schedule. If the Primary and Underlying Excess Policies are not so maintained in full effect at all times during the currency of this Policy, coverage under this Policy shall immediately cease.

General Conditions

1. In respect of the Hazards Covered set forth in Item 3 of the Policy Schedule, this Policy is subject (except as regards the Premium, the obligation to investigate and defend, the renewal agreement, if any, the amount and limit of liability other than the deductible or self-insurance provision where applicable, and except as otherwise provided herein), to the same warranties, terms, conditions, definitions and exclusions as are contained in or may be added to the Primary Policy prior to the happening of an Occurrence for which claim is made hereunder. Should any alteration be made in the premium for the Primary Policy during the currency of this Policy, the Insured shall give notice within thirty (30) days thereof to the Insurers who shall have the right to amend the Premium hereon accordingly.

2. Attachment of Liability

Liability to pay under this Policy shall not attach unless and until the Primary and Underlying Excess Insurers have paid or have been held liable to pay the full amount of the Primary and Underlying Excess Limit(s) as set forth in Item 4 (a) of the Policy Schedule.

3. Incurring of Permitted Costs

In the event of a claim or claims arising which appear likely to exceed the Primary and Underlying Excess Limit(s), no Permitted Costs shall be incurred by the Insured without the consent of the Insurers.

4. Apportionment of Costs

Permitted Costs incurred by or on behalf of the Insured with the written consent of the Insurers, and for which the Insured is not covered by the Primary and Underlying Excess Insurers, shall be apportioned as follows:

(a) Should any claim or claims be resolved prior to the commencement of trial for not more than the Primary and Underlying Excess Limit(s), then no Permitted Costs shall be payable by the Insurers.

(b) Should, however, the amount for which the said claim or claims may be resolved exceed the Primary and Underlying Excess Limit(s), then the Insurers, if they consent to the proceedings continuing, shall contribute to the Permitted Costs incurred by or on behalf of the Insured in the ratio that the amount they are liable to pay in respect of the Ultimate Net Loss bears to the whole amount of the Ultimate Net Loss.

In the event that the Insured elects not to appeal a judgement in excess of the Primary and Underlying Excess Limit(s) the Insurers may elect to conduct such appeal at their own cost and expense and shall be liable for the taxable or assessable court costs and interest incidental thereto, but in no event shall the total liability of the Insurers exceed the limit of liability under this Policy as provided for herein, plus the expenses of such appeal.

5. Application of Recoveries

All recoveries or payments recovered or received subsequent to a loss settlement under this Policy shall be applied as if recovered or received prior to such settlement and all necessary adjustments shall then be made between the Insured and the Insurers, provided always that nothing in this Policy shall be construed to mean that losses under this Policy are not payable until the Insured’s Ultimate Net Loss has been finally ascertained.

6. Notification of Claims

In the event of an Occurrence likely to give rise to a claim hereunder notice shall be given by the Insured to the Insurers as soon as reasonably possible, in accordance with Item 7 of the Policy Schedule.

7. Fraudulent Claims

If the Insured shall make any claim knowing the same to be false or fraudulent as regards amount or otherwise, this Policy shall become void and all claims hereunder shall be forfeited.

8. Law and Jurisdiction

This Policy shall be governed by the laws of England and Wales whose courts shall have exclusive jurisdiction in any dispute arising hereunder between the parties to this contract.

9. Variation in Risk

The Insured, upon being aware of any material change in the circumstances or nature of the risks covered by this Policy, shall give immediate notice thereof to the Insurers who shall have the right to amend the Premium hereon accordingly.

.10. Cancellation

This Policy may be cancelled at any time at the written request of the Insured or may be cancelled by or on behalf of the Insurers provided not less than thirty (30) days notice in writing be given.

The premium to be retained by the Insurers in the event of cancellation by the Insured shall be calculated as follows:

(a) If the premium is on an adjustable basis: the earned premium hereon for the period that this Policy has been in force or the short rate proportion of any minimum premium calculated in accordance with the attached scale, whichever is the greater.

(b) If the premium is on a non-adjustable basis: the short rate proportion thereof calculated in accordance with the attached scale.

In the event of cancellation by the Insurers the premium due to the Insurers shall be calculated as in (a) and (b) above except that pro rata proportion shall be substituted for short rate proportion. Notice of cancellation by the Insurers shall be effective even though the Insurers make no payment or tender of return premium.

If the period of limitation relating to the giving of notice is prohibited or made void by any law controlling the construction hereof, such notice shall be deemed to be amended so as to be equal to the minimum period of limitation permitted by such law.

11. Other Insurance

To the extent that there is other insurance providing coverage to the subject claim (other than underlying insurance or insurance that is specifically intended to be excess of this Policy), the liability of the Insurers under this Policy shall be limited to their rateable proportion of the claim.

AVIATION CANCELLATION SCALE (applicable to Annual Policies)

1 month on risk 20% annual premium

2 months on risk 30% annual premium

3 months on risk 40% annual premium

4 months on risk 50% annual premium

5 months on risk 60% annual premium

6 months on risk 70% annual premium

7 months on risk 75% annual premium

8 months on risk 80% annual premium

9 months on risk 85% annual premium

Over 9 months equivalent to Annual.

AVN 37B 10.10.02

(1) This Policy does not cover

(i) loss of or destruction of or damage to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom or any consequential loss

(ii) any legal liability of whatsoever nature directly or indirectly caused by or contributed to by or arising from:

(a) the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof ;

(b) the radioactive properties of, or a combination of radioactive properties with toxic, explosive or other hazardous properties of, any other radioactive material in the course of carriage as cargo, including storage or handling incidental thereto;

(c) ionizing radiations or contamination by radioactivity from, or the toxic, explosive or other hazardous properties of, any other radioactive source whatsoever.

(2) It is understood and agreed that such radioactive material or other radioactive source in paragraph (1) (b) and (c) above shall not include :

(i) depleted uranium and natural uranium in any form ;

(ii) radioisotopes which have reached the final stage of fabrication so as to be usable for any scientific, medical, agricultural, commercial, educational or industrial purpose.

(3) This Policy, however, does not cover loss of or destruction of or damage to any property or any consequential loss or any legal liability of whatsoever nature with respect to which :

(i) the Insured under this Policy is also an insured or an additional insured under any other insurance policy, including any nuclear energy liability policy ; or

(ii) any person or organization is required to maintain financial protection pursuant to legislation in any country ; or

(iii) the Insured under this Policy is, or had this Policy not been issued would be, entitled to indemnification from any government or agency thereof.

(4) Loss, destruction, damage, expense or legal liability in respect of the nuclear risks not excluded by reason of paragraph ( 2) shall (subject to all other terms, conditions, limitations, warranties and exclusions of this Policy) be covered, provided that :

(i) in the case of any claim in respect of radioactive material in the course of carriage as cargo, including storage or handling incidental thereto, such carriage shall in all respect have complied with the full International Civil Aviation Organization “Technical Instructions for the Safe Transport of Dangerous Goods by Air”, unless the carriage shall have been subject to any more restrictive legislation, when it shall in all respects have complied with such legislation ;

(ii) this Policy shall only apply to an incident happening during the period of this Policy and where any claim by the Insured against the Insurers or by any claimant against the Insured arising out of such incident shall have been made within three years after the date thereof ;

(iii) in the case of any claim for the loss of or destruction of or damage to or loss of use of an aircraft caused by or contributed to by radioactive contamination, the level of such contamination shall have exceeded the maximum permissible level set out in the following scale:

Emitter

(IAEA Health and Safety Regulations)

Beta, gamma and low toxicity alpha emitters

All other alpha emitters

Maximum permissible level of non fixed radioactive surface contamination
(Averaged over 300cm²)

Not exceeding 4 Bequerels/cm²

(10^-4 microcuries/cm²)

Not exceeding 0.4 Bequerels/cm²

(10^-5 microcuries/cm²)

(iv) the cover afforded hereby may be cancelled at any time by the Insurers giving seven days' notice of cancellation.

AVN 38B 22.7.96

1. This Policy is a reinsurance of................................. and it is warranted to be at the same gross rate, terms and conditions as those applying to the Reinsured(s) as agreed at inception.

2. It is further warranted that the Reinsured(s) will retain during the currency of this Policy the amount as agreed by the Reinsurers at inception.

3. Subject to the foregoing, it is a condition precedent to any liability under this Reinsurance that:

(a) no amendment to the terms or conditions of, or additions to or deletions from the original policy shall be binding upon the Reinsurers unless prior agreement has been obtained from the said Reinsurers;

(b) the Reinsured(s) shall upon knowledge of any loss or losses which may give rise to a claim under this Reinsurance, advise the Reinsurers within 72 hours;

(c) the Reinsured(s) shall furnish the Reinsurers with all information available respecting such loss or losses, and the Reinsurers shall have the sole right to appoint adjusters, assessors, surveyors and/or lawyers and to control all negotiations, adjustments and settlements in connection with such loss or losses.

AVN 41A 4.2.02

1. It is a condition of this Policy that the Insured will take all reasonable steps to ensure that

(a) before a passenger boards the Aircraft, or when the Insured takes charge of registered/checked baggage and/or cargo, the appropriate Document of Carriage (correctly completed so as to identify the contract of carriage and to exclude or limit the Insured’s legal liability) is delivered to the passenger or consignor/shipper as the case may be

(b) suitable evidence of compliance with the foregoing is preserved and made available to Insurers upon request

2. In the event of failure by the Insured to comply with the foregoing condition, the amount of Insurers’ liability shall not exceed the sum for which the Insured would have been legally liable if the aforesaid failure had not occurred, subject always to the Policy limits.

3. As used herein:

“Document of Carriage” means a passenger ticket, baggage ticket/check or an air consignment note/air waybill (whichever is relevant to liability covered by this Policy) of which the form, the Conditions of Contract (including any applicable Tariff or Conditions of Carriage) and the usage thereof are either

(i) in accordance with current and relevant Resolutions adopted by members of the International Air Transport Association

or (ii) approved in writing by Insurers in any other case.

AVN 42 1.10.96

1. As used herein "Warsaw Convention" means the Convention for the Unification of Certain Rules relating to International Carriage by Air signed at Warsaw, October 12th 1929 or any amendment or supplement to that Convention whether by means of Protocol, additional, new or supplemental Convention or otherwise.

2. If at any time during the currency of this Policy the Insured's legal liability may be affected by any one or any combination of the following events:

(a) Any ratification or denunciation of, or accession or adherence to, the Warsaw Convention or if the Warsaw Convention ceases to apply in respect of any State or Territory where it was previously in force

(b) Any alteration of liability in conformity with any Government or other official requirement or commercial agreement or by means of a Special Contract or Tariff provision in accordance with the Warsaw Convention

THEN notwithstanding any other provisions of the Policy, and in contemplation of any of the above events, either the Insured or the Insurers shall have the right to request a revision of terms and conditions. Revised terms and conditions agreed by the parties hereto shall, unless otherwise agreed, become operative if and when the events (or event) relevant to the aforesaid revision become(s) effective.

3. If no agreement is reached on revised terms and conditions on the expiry of 60 days from the date of a written request for the aforesaid revision, then either party shall have the right to give 30 days notice of cancellation of the Policy.

AVN 44 1.10.96

1. As used herein "Warsaw Convention" means the Convention for the Unification of Certain Rules relating to International Carriage by Air signed at Warsaw, October 12th, 1929, or any amendment or supplement to that Convention whether by means of Protocol, additional, new or supplemental Convention or otherwise.

2. MUTUAL REVISION. If at any time during the currency of this Policy the Insured's legal liability may be affected by any one or any combination of the following events:

(a) any ratification or denunciation of, or accession or adherence to, the Warsaw Convention or if the Warsaw Convention ceases to apply in respect of any State or Territory where it was previously in force.

(b) Any alteration of liability by national legislation or in conformity with any Government or other official requirement

If no agreement is reached on revised terms and conditions on the expiry of 60 days from the date of a written request for the aforesaid revision, then either party shall have the right to give 30 days’ notice of cancellation of the Policy.

3. SPECIAL CONTRACTS. Subject to the prior approval of Insurers and in consideration of additional premium this Policy may be extended to cover the Insured's legal liability in respect of Special Contracts. As used herein "Special Contract" means

(i) an agreement between the Insured and a passenger for a higher limit of liability in accordance with Article 22(1) of the Warsaw Convention, or

(ii) any other agreement between the Insured and a passenger whereby the Insured assumes increased legal liability in respect of the passenger's death or injury.

Special Contracts which have been approved as aforesaid are identified by the documents annexed hereto being either Specimen Tickets, Tariff(s), Conditions of Contract or of Carriage, and Notices to Passengers, or alternatively Copies of Agreements between carriers requiring the parties thereto to enter into Special Contracts.

4. Nothing herein shall be deemed to alter the limits of Insurers' liability as specified in the Policy. Any condition of the Policy relating to contractual agreements is varied only as may be necessary to the extent herein provided.

AVN 44A 1.10.96

(If the documents referred to in the final paragraph of 3. above are not annexed to the policy said paragraph should be deleted.)

1. This Policy does not cover claims directly or indirectly occasioned by, happening through or in consequence of:-

(a) noise (whether audible to the human ear or not), vibration, sonic boom and any phenomena associated therewith,

(b) pollution and contamination of any kind whatsoever,

(d) interference with the use of property;

unless caused by or resulting in a crash, fire, explosion, or collision or a recorded in-flight emergency causing abnormal aircraft operation.

or a recorded in-flight emergency causing abnormal aircraft operation.

2. With respect to any provision in the Policy concerning any duty of Insurers to investigate or defend claims, such provision shall not apply and Insurers shall not be required to defend

(a) claims excluded by Paragraph 1 or

(b) a claim or claims covered by the Policy when combined with any claims excluded by Paragraph 1 (referred to below as "Combined Claims").

3. In respect of any Combined Claims, Insurers shall (subject to proof of loss and the limits of the Policy) reimburse the Insured for that portion of the following items which may be allocated to the claims covered by the Policy:

(i) damages awarded against the Insured and

(ii) defence fees and expenses incurred by the Insured.

Nothing herein shall override any radioactive contamination or other exclusion clause attached to or forming part of this Policy.

AVN 46B 1.10.96

WE, the Insurers, agree with the Insured named in the Schedule hereto, in consideration of the payment of the premium, and in reliance upon the statements in the Schedule hereto:-

1. Subject to the terms, conditions, exclusions and limits hereof Insurers will indemnify the Insured in respect of all sums which the Insured shall become legally liable to pay as compensation (including costs awarded against the Insured) in respect of accidental bodily injury (fatal or non-fatal) or accidental physical damage to or destruction of property (including animals) caused by the Noise of an identified Aircraft as specified in the Schedule hereto.

As used herein:

"Noise" includes vibration, sonic boom and any phenomena associated therewith.

2. (a) Insurers shall not be required to defend claims made against the Insured but may at their own Option and expense (in addition to any amounts paid in accordance with Paragraph 1) investigate, defend, compromise and settle in the name of and on behalf of the Insured any claims covered by Paragraph 1 and, to the extent hereby provided, may also act as aforesaid in relation to any uninsured claims when combined with any claims covered by Paragraph 1. Notwithstanding any exercise of their Option as aforesaid, Insurers shall only be responsible for that part of any sums paid as compensation which is in accordance with Paragraph 1.

(b) As soon as practicable following the receipt of Notice from the Insured in accordance with Paragraph 7 Insurers shall advise the Insured whether they wish to exercise their Option, and in any event not later than 60 days after Insurers have received a copy of any Writ, Summons or Complaint or other document commencing legal proceedings against the Insured in respect of Aircraft Noise. If Insurers advise the Insured that they do not wish to exercise their Option as aforesaid thereafter Insurers may only exercise the said Option with the consent of the Insured.

3. If Insurers do not exercise their Option, they shall contribute in the proportion specified below to the Insured's costs and expenses necessarily incurred for the purposes of investigation, defence, settlement, trial or appeal in relation to Aircraft Noise claims:

The total paid by Insurers The Insured’s

as compensation in accordance costs and

Insurers’ = with Paragraph 1 X expenses as

contribution The total paid by or on behalf of aforesaid

the Insured as compensation howsoever

arising in respect of aircraft Noise

COVERAGE

INSURERS OPTION TO DEFEND

CONTRIBUTION TO INSURED’S COSTS AND EXPENSES

The Insured's costs and expenses as aforesaid shall not include wages or salary of directors, partners or employees of the Insured.

Any contribution by Insurers as aforesaid shall be in addition to any sums paid in accordance with Paragraph 1 subject to an aggregate annual limit as shown in Item 8 of the Schedule.

4. The Insured shall contribute ten per cent (10%) towards all claims paid under this policy, including the allocated claims expense therefor under paragraphs 2(a) and 3. The Insurers may pay any part or all of the named Insured's contribution in order to effect settlement of any claim or suit and upon notice to the named Insured, the named Insured shall reimburse the Insurers for such part of the Insured's contribution as has been paid by the Insurers.

5. THIS POLICY DOES NOT APPLY

(a) to claims arising out of or in any way connected with nuisance and/or compensation for the taking, use of or acquisition of rights to property or airspace and/or any other direct or indirect consequences of Aircraft Noise except to the extent provided by Paragraph 1

(b) to any liability which arises solely by reason of any contract or agreement entered into by or on behalf of the Insured even if such contract or agreement has been noted by Insurers

(c) to claims by or in respect of any person or property on board the Aircraft, or any property owned, rented, occupied or used by or in the care, custody or control of the Insured

(d) while the Aircraft is being used for any unlawful purpose, or any purpose not specified in Item 4 of the Schedule hereto

(e) while outside the geographical limits specified in Item 5 of the Schedule hereto unless due to force majeure

(f) while the Aircraft is operated by anyone other than the Pilot(s) specified in Item 6 of the Schedule hereto

6. This Policy does not cover claims directly or indirectly occasioned by happening through or in consequence of:-

(b) Any hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.

INSURED’S CONTRIBUTION

EXCLUSIONS

WAR,

HI-JACKING AND OTHER PERILS EXCLUSION

8. WARRANTED that in relation to (i) the control and minimisation of Noise and (ii) airworthiness, operation, maintenance and repair of aircraft the Insured will take all reasonable steps to ensure that the Aircraft and all those engaged in its operation and maintenance will (a) comply with any applicable Laws and Regulations (including any rules and instructions of airport, Air Traffic Control and airworthiness authorities) and (b) follow any applicable instructions or recommendations of Aircraft, Engine and Operational Equipment designers and manufacturers.		WARRANTY
9. (i) Insurers' liability shall not exceed the limits specified in Item 8 of the Schedule hereto. (ii) Notwithstanding the inclusion herein of more than one Insured whether by endorsement or otherwise, the total liability of Insurers in respect of any or all Insureds shall not exceed the amounts specified in Item 8 of the Schedule hereto. (iii) If the risk covered herein is insured by, or would, but for the existence of this policy, be insured by any other policy or policies, then this policy shall only pay in excess of any amount which is or would have been payable under such other policy or policies. (iv) The due observance and fulfilment of the terms provisions, conditions and endorsements of this Policy shall be conditions precedent to any liability of the Insurers to make any payment under this Policy (v) If the Insured shall make any claim knowing the same to be false or fraudulent as regards amount or otherwise this policy shall become void and all claims thereunder shall be forfeited. (vi) Should there be any change in the circumstances or nature of the risks which are the basis of this contract the Insured shall give immediate notice thereof to the Insurers and no claim arising subsequent to such change shall be recoverable hereunder unless such change has been accepted by the Insurers. (vii) This Policy may be cancelled at any time by the Insurers giving 10 days' notice in writing of such cancellation. In such event the Insurers will return in respect of the unexpired period a pro rata portion of the premium. (viii) This Policy shall not be assigned in whole or in part except with the consent of the Insurers verified by endorsement hereon.		GENERAL CONDITIONS
(ix) All differences arising out of this Policy shall be referred to the decision of an Arbitrator to be appointed in writing by the parties in difference or if they cannot agree upon a single Arbitrator to the decision of two Arbitrators one to be appointed in writing by each of the parties within one calendar month after having been required in writing so to do by either of the parties or in case the Arbitrators do not agree of an Umpire appointed in writing by the Arbitrators before entering upon the reference. The Umpire shall sit with the Arbitrators and preside at their meetings and the making of an Award shall be a condition precedent to any right of action against the Insurers. If the Insurers shall disclaim liability to the Insured for any claim hereunder and such claim shall not within twelve calendar months from the date of such disclaimer have been referred to arbitration under the provisions herein contained then the claim shall for all purposes be deemed to have been abandoned and shall not thereafter be recoverable hereunder. Unless otherwise mutually agreed between the parties such arbitration shall take place in London. AVN 47 1.10.96

THE SCHEDULE

PREMIUM ............................................ POLICY NO. .....................................

1. Name of Insured

2. Address

3. Period of Insurance

4. Purposes for which Aircraft may be used

5. Geographical Limits

6. Pilots

7. Aircraft insured hereby: -

(a) Manufacture

(b) Model designation

8. Limits of Insurers' Liability

The Liability of Insurers shall not exceed the following amounts:-

......................................... any one aircraft any one occurrence but not exceeding

......................................... in the aggregate during any one Policy year

9. Notice to Insurers

Notice to Insurers in accordance with Paragraph 7 shall be given to:-

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

AVN 47 1.10.96

This policy does not cover claims caused by

(a) War, invasion, acts of foreign enemies, hostilities, (whether war be declared or not), civil war, rebellion, revolution, insurrection, martial law, military or usurped power or attempts at usurpation of power.

(b) Any hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.

(d) Any act of one or more persons, whether or not agents of a sovereign Power, for political or terrorist purposes and whether the loss or damage resulting therefrom is accidental or intentional.

(e) Any malicious act or act of sabotage.

(g) Hi-jacking or any unlawful seizure or wrongful exercise of control of the aircraft or crew in flight (including any attempt at such seizure or control) made by any person or persons on board the aircraft acting without the consent of the Insured.

Furthermore, this Policy does not cover claims arising whilst the aircraft is outside the control of the Insured by reason of any of the above perils. The aircraft shall be deemed to have been restored to the control of the Insured on the safe return of the aircraft to the Insured at an airfield not excluded by the geographical limits of this Policy, and entirely suitable for the operation of the aircraft (such safe return shall require that the aircraft be parked with engines shut down and under no duress.)

AVN 48B 1.10.96

This Policy does not cover claims caused by

(b) Any

(i) hostile detonation of any device employing atomic or nuclear fission and/or fusion or other like reaction.

(ii) hostile use of radioactive contamination or matter.

(iii) hostile use of an electromagnetic pulse.

(iv) use of chemical or biological materials that are poisonous or pathogenic arising from war, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, martial law, military or usurped power or attempts at usurpation of power, or use of such materials for political or terrorist purposes and whether the loss or damage resulting therefrom is accidental or intentional.

(d) Any act of one or more persons, whether or not agents of a sovereign power, for political or terrorist purposes and whether the loss or damage resulting therefrom is accidental or intentional.

(e) Any malicious act or act of sabotage.

(f) Confiscation, nationalisation, seizure, restraint, detention, appropriation, requisition for title or use by or under the order of any government (whether civil, military or de facto) or public or local authority.

(g) Hi-jacking or any unlawful seizure or wrongful exercise of control of the Aircraft or crew in flight (including any attempt at such seizure or control) made by any person or persons on board the Aircraft acting without the consent of the Insured. For the purpose of this exclusion (g) only, an aircraft is considered to be in flight at any time from the moment when all its external doors are closed following embarkation until the moment when any such door is opened for disembarkation or when the aircraft is in motion. A rotor-wing aircraft shall be deemed to be in flight when the rotors are in motion as a result of engine power, the momentum generated therefrom, or autorotation.

Furthermore this Policy does not cover claims arising whilst the Aircraft is outside the control of the Insured by reason of any of the above perils. The Aircraft shall be deemed to have been restored to the control of the Insured on the safe return of the Aircraft to the Insured at an airfield not excluded by the geographical limits of this Policy, and entirely suitable for the operation of the Aircraft (such safe return shall require that the Aircraft be parked with engines shut down and under no duress).

AVN48C 04.8.06

In common with all AICG produced AVN Clauses, this Clause is published by AICG, but it is expressly non-binding and AICG makes no recommendation as to its use in particular policies. Insurers are of course free to offer different policy wordings and clauses to their policy holders.

This Policy does not cover claims caused by

(b) Any hostile

(i) detonation of any device employing atomic or nuclear fission and/or fusion or other like reaction and any radioactive contamination and electromagnetic pulse resulting directly from such detonation.

(ii) use of radioactive contamination or matter.

(iii) use of an electromagnetic pulse.

(iv) emission, discharge, or release of chemical or biological materials that are poisonous or pathogenic.

(d) Any act of one or more persons, whether or not agents of a sovereign power, for political or terrorist purposes and whether the loss or damage resulting therefrom is accidental or intentional.

(e) Any malicious act or act of sabotage.

(f) Confiscation, nationalization, seizure, restraint, detention, appropriation, requisition for title or use by or under the order of any government (whether civil, military or de facto) or public or local authority.

AVN 48D 04.8.06

(i) Strikes, riots, civil commotions or labour disturbances;

(ii) Any malicious act or act of sabotage;

(iii) Hi-jacking or any unlawful seizure or wrongful exercise of control of the Aircraft or crew in Flight (including any attempt at such seizure or control) made by any person or persons on board the Aircraft acting without the consent of the Insured

PROVIDED ALWAYS THAT

1. The above extension shall only apply to the extent that the loss or damage is not otherwise excluded by (a), (b), (d) and (f) of the War, Hi-jacking and Other Perils Exclusion Clause

2. the limits of Insurers' liability in respect of any or all of the risks covered under this endorsement shall not exceed the sum of ................................................. (in the aggregate during the Policy period)

3. the Insured has paid or has agreed to pay the additional premium of ..............................required by the Insurers in respect of this extension

4. the insurance provided by this endorsement may be cancelled by the Insurers giving notice effective on the expiry of seven days from midnight GMT on the day on which notice is issued.

AVN 51 1.10.96

Notwithstanding the contents of the War, Hi-jacking and Other Perils Exclusion Clause forming part of this Policy, it is hereby understood and agreed that this Policy is extended, SUBJECT to all terms, conditions, limitations, warranties, exclusions and cancellation provisions of the Policy except as specifically varied or provided by the terms of this Endorsement, to cover claims caused by the following risks:-

i. Strikes, riots, civil commotions or labor disturbances;

ii. Any malicious act or act of sabotage;

iii. Hi-jacking or any unlawful seizure or wrongful exercise of control of the Aircraft or crew in flight (including any attempt at such seizure or control) made by any person or persons on board the Aircraft acting without the consent of the Insured. For the purpose of this paragraph only, an aircraft is considered to be in flight at any time from the moment when all its external doors are closed following embarkation until the moment when any such door is opened for disembarkation or when the aircraft is in motion. A rotor-wing aircraft shall be deemed to be in flight when the rotors are in motion as a result of engine power, the momentum generated therefrom, or autorotation.

iv. PROVIDED ALWAYS THAT

1. The above extension shall only apply to the extent that the loss or damage is not otherwise excluded by (a), (b), (d) and (f) of the War, Hi-jacking and Other Perils Exclusion Clause

2. the limits of Insurers’ liability in respect of any or all of the risks covered under this Endorsement shall not exceed the sum of (in the aggregate during the Policy period)

3. the Insured has paid or has agreed to pay the additional premium of required by the Insurers in respect of this extension

4. the insurance provided by this Endorsement may be cancelled by the Insurers giving notice effective on the expiry of seven days from midnight GMT on the day on which notice is issued.

AVN 51(A) 04.8.06

In common with all AICG produced AVN Clauses, this Clause is published by AICG, but it is expressly non-binding and AICG makes no recommendation as to its use in particular policies. Insurers are of course free to offer different policy wordings and clauses to their policy holders.

agreed that with effect from ............................ , all sub-paragraphs other than

............................................... of Clause AVN 48B forming part of this Policy are deleted

SUBJECT TO all terms and conditions of this Endorsement.

2. EXCLUSION applicable only to any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B. Cover shall not include liability for damage to any form of property on the ground situated outside Canada and the United States of America unless caused by or arising out of the use of aircraft.

3. AUTOMATIC TERMINATION

To the extent provided below, cover extended by this Endorsement shall TERMINATE AUTOMATICALLY in the following circumstances:

(i) All cover

- upon the outbreak of war (whether there be a declaration of war or not) between any two or more of the following States, namely, France, the People's Republic of China, the Russian Federation, the United Kingdom, the United States of America

(ii) Any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN48B

- upon the hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter wheresoever or whensoever such detonation may occur and whether or not the Insured Aircraft may be involved

(iii) All cover in respect of any of the Insured Aircraft requisitioned for either title or use

- upon such requisition

PROVIDED THAT if an Insured Aircraft is in the air when (i), (ii) or (iii) occurs, then the cover provided by this Endorsement (unless otherwise cancelled, terminated or suspended) shall continue in respect of such an Aircraft until completion of its first landing thereafter and any passengers have disembarked.

4. REVIEW AND CANCELLATION

(a) Review of Premium and/or Geographical Limits (7 days)

Insurers may give notice to review premium and/or geographical limits - such notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which notice is given.

(b) Limited Cancellation (48 hours)

Following a hostile detonation as specified in 3 (ii) above, Insurers may give notice of cancellation of one or more parts of the cover provided by paragraph 1 of this Endorsement by reference to sub-paragraphs (c), (d), (e), (f) and/ or (g) of Clause AVN 48B - such notice to become effective on the expiry of forty-eight hours from 23.59 hours GMT on the day on which notice is given.

The cover provided by this Endorsement may be cancelled by either Insurers or the Insured giving notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which such notice is given.

(d) Notices

All notices referred to herein shall be in writing.

AVN 52C 1.10.96

1. WHEREAS the Policy of which this Endorsement forms part includes the War, Hi-Jacking and Other Perils Exclusion Clause (Clause AVN 48B), IN CONSIDERATION of an Additional Premium of .............................................., it is hereby understood and agreed that with effect from ............................ , all sub-paragraphs other than ............................................... of Clause AVN 48B forming part of this Policy are deleted SUBJECT TO all terms and conditions of this Endorsement.

2. EXCLUSION applicable only to any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B.

Cover shall not include liability for damage to any form of property on the ground situated outside Canada and the United States of America unless caused by or arising out of the use of aircraft.

3. LIMITATION OF LIABILITY

The limit of Insurers' liability in respect of the coverage provided by this Endorsement shall be US$ 50,000,000 or the applicable policy limit whichever the lesser any one Occurrence and in the annual aggregate (the “sub-limit”). This sub-limit shall apply within the full Policy limit and not in addition thereto.

To the extent coverage is afforded to an Insured under the Policy, this sub-limit shall not apply to such Insured’s liability:

(a) to the passengers (and for their baggage and personal effects) of any aircraft operator to whom the Policy affords cover for liability to its passengers arising out of its operation of aircraft;

(b) for cargo and mail while it is on board the aircraft of any aircraft operator to whom the Policy affords cover for liability for such cargo and mail arising out of its operation of aircraft.

4. AUTOMATIC TERMINATION

To the extent provided below, cover extended by this Endorsement shall TERMINATE AUTOMATICALLY in the following circumstances:

(i) All cover

- upon the outbreak of war (whether there be a declaration of war or not) between any two or more of the following States, namely, France, the People’s Republic of China, the Russian Federation, the United Kingdom, the United States of America

(ii) Any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B

(iii) All cover in respect of any of the Insured Aircraft requisitioned for either title or use

- upon such requisition

5. REVIEW AND CANCELLATION

(a) Review of Premium and/or Geographical Limits (7 days)

Insurers may give notice to review premium and/or geographical limits - such notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which notice is given.

(b) Limited Cancellation (48 hours)

Following a hostile detonation as specified in 4 (ii) above, Insurers may give notice of cancellation of one or more parts of the cover provided by paragraph 1 of this Endorsement by reference to sub-paragraphs (c), (d), (e), (f) and/ or (g) of Clause AVN 48B - such notice to become effective on the expiry of forty-eight hours from 23.59 hours GMT on the day on which notice is given.

(d) Notices

All notices referred to herein shall be in writing.

AVN 52D 12.12.01

2. EXCLUSION applicable only to any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B.

Cover shall not include liability for damage to any form of property on the ground situated outside Canada and the United States of America unless caused by or arising out of the use of aircraft.

3. LIMITATION OF LIABILITY

The limit of Insurers' liability in respect of the coverage provided by this Endorsement shall be a sub-limit of ......................................... or the applicable Policy limit whichever the lesser any one Occurrence except with respect to passengers to whom the full Policy limit(s) shall apply. This sub-limit shall apply within the full Policy limit and not in addition thereto.

4. AUTOMATIC TERMINATION

To the extent provided below, cover extended by this Endorsement shall TERMINATE AUTOMATICALLY in the following circumstances:

(i) All cover

(ii) Any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B

(iii) All cover in respect of any of the Insured Aircraft requisitioned for either title or use

- upon such requisition

5. REVIEW AND CANCELLATION

(a) Review of Premium and/or Geographical Limits (7 days)

Insurers may give notice to review premium and/or geographical limits - such notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which notice is given

(b) Limited Cancellation (48 hours)

(d) Notices

All notices referred to herein shall be in writing.

AVN 52E 20.9.01

2. EXCLUSION applicable only to any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B.

Cover shall not include liability for damage to any form of property on the ground situated outside Canada and the United States of America unless caused by or arising out of the use of aircraft.

3. LIMITATION OF LIABILITY

The limit of Insurers' liability in respect of the coverage provided by this Endorsement shall be .................................. or the applicable Policy limit whichever the lesser any one Occurrence and in the annual aggregate (the “sub-limit”). This sub-limit shall apply within the full Policy limit and not in addition thereto.

To the extent coverage is afforded to an Insured under the Policy, this sub-limit shall not apply to such Insured’s liability:

(b) for cargo and mail while it is on board the aircraft of any aircraft operator to whom the Policy affords cover for liability for such cargo and mail arising out of its operation of aircraft.

5. REVIEW AND CANCELLATION

(a) Review of Premium and/or Geographical Limits (7 days)

Insurers may give notice to review premium and/or geographical limits - such notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which notice is given.

(b) Limited Cancellation (48 hours)

(d) Notices

All notices referred to herein shall be in writing.

AVN 52E 12.12.01

2. EXCLUSION applicable only to any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B.

Cover shall not include liability for damage to any form of property on the ground situated outside Canada and the United States of America unless caused by or arising out of the use of aircraft.

3. LIMITATION OF LIABILITY

The limit of Insurers' liability in respect of the coverage provided by this Endorsement shall be a sub-limit of US$ 50,000,000 or the applicable Policy limit whichever the lesser any one Occurrence and in the annual in aggregate. This sub-limit shall apply within the full Policy limit and not in addition thereto.

4. AUTOMATIC TERMINATION

To the extent provided below, cover extended by this Endorsement shall TERMINATE AUTOMATICALLY in the following circumstances:

(i) All cover

(ii) Any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B

(iii) All cover in respect of any of the Insured Aircraft requisitioned for either title or use

- upon such requisition

5. REVIEW AND CANCELLATION

(a) Review of Premium and/or Geographical Limits (7 days)

Insurers may give notice to review premium and/or geographical limits - such notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which notice is given

(b) Limited Cancellation (48 hours)

(d) Notices

All notices referred to herein shall be in writing.

AVN 52F 17.10.01

2. EXCLUSION applicable only to any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B.

Cover shall not include liability for damage to any form of property on the ground situated outside Canada and the United States of America unless caused by or arising out of the use of aircraft.

3. LIMITATION OF LIABILITY

The limit of Insurers' liability in respect of the coverage provided by this Endorsement shall be a sub-limit of ...................... or the applicable Policy limit whichever the lesser any one Occurrence and in the annual in aggregate. This sub-limit shall apply within the full Policy limit and not in addition thereto.

4. AUTOMATIC TERMINATION

To the extent provided below, cover extended by this Endorsement shall TERMINATE AUTOMATICALLY in the following circumstances:

(i) All cover

(ii) Any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B

(iii) All cover in respect of any of the Insured Aircraft requisitioned for either title or use

- upon such requisition

5. REVIEW AND CANCELLATION

(a) Review of Premium and/or Geographical Limits (7 days)

Insurers may give notice to review premium and/or geographical limits - such notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which notice is given

(b) Limited Cancellation (48 hours)

(d) Notices

All notices referred to herein shall be in writing.

AVN 52G 17.10.01

(applicable to coverage provided to services providers)

1. WHEREAS the Policy of which this Endorsement forms part includes the War, Hi-Jacking and Other Perils Exclusion Clause (Clause AVN 48C), IN CONSIDERATION of an Additional Premium of ………………. , it is hereby understood and agreed that with effect from ………, all sub-paragraphs other than of Clause AVN 48C forming part of this Policy are deleted SUBJECT to all terms, conditions, limitations, warranties, exclusions and cancellation provisions of the Policy except as specifically varied or provided by the terms of this Endorsement.

2. EXCLUSION applicable only to any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48C.

Cover shall not include liability for damage to any form of property on the ground situated outside Canada and the United States of America unless caused by or arising out of the use of aircraft.

3. LIMITATION OF LIABILITY

The limit of Insurers' liability in respect of the coverage provided by this Endorsement shall be …….. or the applicable Policy limit whichever the lesser any one Occurrence and in the annual aggregate (the “sub-limit”). This sub-limit shall apply within the full Policy limit and not in addition thereto.

To the extent coverage is afforded to an Insured under the Policy, this sub-limit shall not apply to such Insured’s liability:

(a) to the passengers (and for their baggage and personal effects) of any aircraft operator to whom the Policy affords cover for liability to its passengers arising out of its operation of aircraft;

(b) for cargo and mail while it is on board the aircraft of any aircraft operator to whom the Policy affords cover for liability for such cargo and mail arising out of its operation of aircraft.

4. AUTOMATIC TERMINATION

To the extent provided below, cover extended by this Endorsement shall TERMINATE AUTOMATICALLY in the following circumstances:

(i) All cover

(ii) Any cover extended by the deletion of sub-paragraph (a) of Clause AVN 48C

- upon the hostile detonation of any device employing atomic or nuclear fission and/or fusion or other like reaction wheresoever or whensoever such detonation may occur and whether or not any aircraft insured under the Policy may be involved

(iii) All cover in respect of any aircraft insured under the Policy that is requisitioned for either title or use

- upon such requisition

PROVIDED THAT if any aircraft insured under the Policy is in the air when the cover provided by this endorsement would thereby be terminated under (i), (ii) or (iii) of this paragraph, then the cover provided by this Endorsement (unless otherwise cancelled, terminated or suspended) shall continue in respect of such an Aircraft until completion of its first landing thereafter and any passengers have disembarked.

5. REVIEW AND CANCELLATION

(a) Review of Premium and/or Geographical Limits (7 days)

Insurers may give notice to review premium and/or geographical limits - such notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which notice is given.

(b) Limited Cancellation (48 hours)

Following a hostile detonation as specified in 4 (ii) above, Insurers may give notice of cancellation of one or more parts of the cover provided by paragraph 1 of this Endorsement by reference to sub-paragraphs (c), (d), (e), (f) and/ or (g) of Clause AVN 48C - such notice to become effective on the expiry of forty-eight hours from 23.59 hours GMT on the day on which notice is given.

(d) Notices

All notices referred to herein shall be in writing.

AVN 52H 04.8.06

(applicable to coverage provided to aircraft operators)

1. WHEREAS the Policy of which this Endorsement forms part includes the War, Hi-Jacking and Other Perils Exclusion Clause (Clause AVN 48C), IN CONSIDERATION of an Additional Premium of …………. , it is hereby understood and agreed that with effect from …………..,all sub-paragraphs other than of Clause AVN 48C forming part of this Policy are deleted SUBJECT to all terms, conditions, limitations, warranties, exclusions and cancellation provisions of the Policy except as specifically varied or provided by the terms of this Endorsement.

2. EXCLUSION applicable only to any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48C.

Cover shall not include liability for damage to any form of property on the ground situated outside Canada and the United States of America unless caused by or arising out of the use of aircraft.

3. LIMITATION OF LIABILITY

The limit of Insurers' liability in respect of the coverage provided by this Endorsement shall be ………………. or the applicable Policy limit whichever the lesser any one Occurrence and in the annual aggregate (the “sub-limit”). This sub-limit shall apply within the full Policy limit and not in addition thereto.

4. AUTOMATIC TERMINATION

To the extent provided below, cover extended by this Endorsement shall TERMINATE AUTOMATICALLY in the following circumstances:

(i) All cover

(ii) Any cover extended by the deletion of sub-paragraph (a) of Clause AVN 48C

(iii) All cover with respect to any aircraft insured under the Policy that is requisitioned for either title or use

- upon such requisition

PROVIDED THAT if any aircraft insured under the Policy is in the air when (i), (ii) or (iii) occurs, then the cover provided by this Endorsement (unless otherwise cancelled, terminated or suspended) shall continue in respect of such an Aircraft until completion of its first landing thereafter and any passengers have disembarked.

5. REVIEW AND CANCELLATION

(a) Review of Premium and/or Geographical Limits (7 days)

Insurers may give notice to review premium and/or geographical limits - such notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which notice is given.

(b) Limited Cancellation (48 hours)

Following a hostile detonation as specified in 4 (ii) above, Insurers may give notice of cancellation of one or more parts of the cover provided by paragraph 1 of this Endorsement by reference to sub-paragraphs (c), (d), (e), (f) and/ or (g) of Clause AVN 48C - such notice to become effective on the expiry of forty-eight hours from 23.59 hours GMT on the day on which notice is given.

(d) Notices

All notices referred to herein shall be in writing.

AVN 52J 04.8.06

(applicable to coverage provided to service providers)

1. WHEREAS the Policy of which this Endorsement forms part includes the War, Hi-jacking and Other Perils Exclusion Clause (Clause AVN48D), IN CONSIDERATION of an Additional Premium of………………………, it is hereby understood and agreed that with effect from………………………the liability cover provided by the Policy is extended as set out herein, SUBJECT to all terms, conditions, limitations, warranties, exclusions and cancellation provisions of the Policy except as specifically varied or provided by the terms of this Endorsement.

1.1 If this paragraph 1.1 is listed as an operative paragraph in paragraph 1.4 below paragraphs (a) and (c) to (g) of Clause AVN48D are deleted;

1.2 If this paragraph 1.2 is listed as an operative paragraph in paragraph 1.4 below:

(i) such of sub-paragraphs (b)(ii), (b)(iii) and (b)(iv) of Clause AVN48D as are listed in paragraph 1.5 (i) are deleted in respect of claims caused by any of the perils set out in those sub-paragraphs originating solely and directly on board an aircraft and

(ii) such of sub-paragraphs (b)(ii) and (b)(iv) of Clause AVN48D as are listed in paragraph 1.5 (ii) are deleted in respect of claims caused by any of the perils set out in those sub-paragraphs originating other than solely and directly on board an aircraft in so far as claims are caused by reason of the crash fire explosion or collision or a recorded emergency causing abnormal operation of an aircraft whilst in flight;

For the purposes of sub-paragraph 1.2 (ii), "in flight" shall mean the period commencing from the time the aircraft moves forward in taking off or attempting to take off, whilst in the air, and until the aircraft completes its landing run. A rotor - wing aircraft shall be deemed to be in flight when the aircraft is in the air.

1.3 If this paragraph 1.3 is listed as an operative paragraph in paragraph 1.4 below such of sub-paragraphs (b)(ii),(b)(iii) and (b)(iv) of Clause AVN48D as are listed in paragraph 1.6 are deleted.

1.4 The operative paragraphs are ……….……………………………………………….

1.5(i) The sub-paragraphs referred to in paragraph 1.2(i) that are deleted are……………..

1.5(ii) The sub-paragraphs referred to in paragraph 1.2(ii) that are deleted are…………….

1.6 The sub-paragraphs referred to in paragraph 1.3 that are deleted are………………..

1.7 Any cover provided by paragraphs 1.2 and/or 1.3 of this Endorsement shall not be excluded by any radioactive contamination and/or noise and pollution exclusion clauses attached to and forming part of this Policy but the cover provided by this Endorsement shall not apply to liability for or costs associated with pollution or contamination unless such pollution or contamination is caused by a sudden act or event.

2. (a) EXCLUSIONS applicable generally:

No cover is provided under this Endorsement for claims excluded by sub-paragraph (b) (i) of Clause AVN48D.

No cover is provided under paragraph 1.1 of this Endorsement for claims excluded by paragraph (b) of Clause AVN48D.

No cover is provided under this Endorsement by the deletion of sub-paragraph (b) (iv) of Clause AVN48D for claims excluded by sub-paragraph (b) (ii) of Clause AVN48D.

(b) EXCLUSION applicable only to any cover extended by this Endorsement in respect of the deletion of any of paragraph (a), sub-paragraphs (b)(ii), (b)(iii) and (b)(iv) of Clause AVN 48D.

Cover shall not include liability for damage to any form of property on the ground situated outside Canada and the United States of America caused by war, invasion, acts of foreign enemies, hostilities (whether war be declared or not) civil war, rebellion, revolution, insurrection, martial law, military or usurped power or attempts at usurpation of power, unless caused by or arising out of the use of aircraft.

3. LIMITATION OF LIABILITY

3.1 In respect of the cover provided by paragraph 1.1 of this Endorsement (if it is an operative paragraph) the limit of Insurers’ liability shall be ………………..any one Occurrence and in the annual aggregate (the "sub-limit"). This sub-limit is included within and is not in addition to the full Policy limit.

To the extent cover is afforded to an Insured under the Policy, this sub-limit shall not apply to such Insured's liability:

(a) to the passengers (and for their baggage and personal effects) of any aircraft
operator to whom the Policy affords cover for liability to its passengers arising out of its operation of aircraft;

(b) for cargo and mail while it is on board the aircraft of any aircraft operator to whom the Policy affords cover for liability for such cargo and mail arising out of its operation of aircraft.

3.2 In respect of the cover provided by paragraph 1.2 of this Endorsement (if it is an operative paragraph) the limit of Insurers’ liability shall be ………………any one Occurrence and in the annual aggregate. This limit is included within and is not in addition to the sub-limit stated in paragraph 3.1 above.

To the extent cover is afforded to an Insured under the Policy, this limit shall not apply to such Insured's liability:

(a) to the passengers (and for their baggage and personal effects) on board the aircraft of any aircraft operator to whom the Policy affords cover for liability to its passengers arising out of its operation of aircraft;

(b) for cargo and mail while it is on board the aircraft of any aircraft operator to whom the Policy affords cover for liability for such cargo and mail arising out of its operation of aircraft.

3.3 In respect of the cover provided by paragraph 1.3 of this Endorsement (if it is an operative paragraph) the limit of Insurers' liability shall be ……………….any one Occurrence and in the annual aggregate. This limit is included within and is not in addition to the sub-limit stated in paragraph 3.1 above.

To the extent cover is afforded to an Insured under the Policy, this limit shall not apply to such Insured's liability:

(a) to the passengers (and for their baggage and personal effects) of any aircraft operator to whom the Policy affords cover for liability to its passengers arising out of its operation of aircraft;

(b) for cargo and mail while it is on board the aircraft of any aircraft operator to whom the Policy affords cover for liability for such cargo and mail arising out of its operation of aircraft.

The limit of Insurers' liability under (a) and (b) above shall be the following limits which are within and are not in addition to the full Policy limit:

For liability in respect of passengers…………………………………………..per passenger

For liability in respect of passengers’ baggage and personal effects …….per passenger

For liability in respect of cargo and mail:……………………………………....per kilogram

3.4 Where the operative paragraphs include 1.1 and/or 1.2 and/or 1.3, the limit of Insurers’ liability for claims caused by both a peril set out in any of sub-paragraphs (b)(ii), (b)(iii) and (b)(iv) that are listed in paragraphs 1.5(i), 1.5(ii) and 1.6 and any other peril for which insurance is afforded by this Endorsement, shall be the applicable limit applying to paragraphs 3.2 and/or 3.3 above.

3.5 If paragraphs 1.2 and 1.3 are both operative paragraphs, only one of the aggregate limits referred to in paragraphs 3.2 and 3.3 shall apply to claims covered by both paragraphs. If the aggregate limits are different then only the higher aggregate limit applies to such claims.

4. AUTOMATIC TERMINATION

To the extent provided below, cover extended by this Endorsement shall TERMINATE
AUTOMATICALLY in the following circumstances:

(i) All cover

(ii) Any cover extended by the deletion of paragraph (a) of Clause AVN 48D, and any cover extended by the deletion of sub-paragraphs (b)(ii), (b) (iii) and (b) (iv) of Clause AVN48D with respect to claims that are also caused by a peril set out in paragraph (a) of AVN48D.

(iii) All cover with respect to any aircraft insured under the Policy that is requisitioned for either title or use

- upon such requisition

5. REVIEW AND CANCELLATION

(a) Review of Premium and/or Geographical Limits (7 days)

Insurers may give notice to review premium and/or geographical limits - such notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which notice is given.

(b) Limited Cancellation (48 hours)

Following a hostile detonation as specified in 4 (ii) above, Insurers may give notice of cancellation of one or more parts of the cover provided by paragraph 1 of this Endorsement by reference to sub-paragraphs (b)(ii), (b)(iii), (b)(iv) and paragraphs (c), (d), (e), (f) and/or (g) of Clause AVN48D - such notice to become effective on the expiry of forty-eight hours from 23.59 hours GMT on the day on which notice is given.

(d) Notices

All notices referred to herein shall be in writing.

AVN 52K 04.8.06

(applicable to coverage provided to aircraft operators)

DRAFTERS’ NOTE – AVN52K

This Note is for guidance only. It is NOT an opinion on the coverage that may be provided by endorsement AVN52K.

The endorsement is intended for use with aviation liability policies that include aircraft liability and, with reference to clause AVN48D, its purpose is to offer flexibility in the write back of combinations of perils other than those set out in sub-paragraph (b)(i) of clause AVN48D, subject to various sub-limits of insurers' liability.

Flexibility is provided by the ability of the parties to select which of the available write back
options (termed the operative paragraphs) are to apply and by the choices offered by the
available operative paragraphs.

The endorsement is designed to give the parties the option of negotiating the insurance cover
required while differentiating between various loss scenarios and at the same time offering
different limits of liability for an Insured’s liability for its passenger and cargo losses and for
third party losses in order to limit insurers’ exposure to losses arising from so-called
weapons of mass destruction.

A Guidance Note has been produced at the request of representatives of the buyers of aviation
insurance in view of the complexities of the endorsement. The Note can be found on the
website of the Aviation Insurance Clauses Group: www.aicg.co.uk.

In common with all AICG produced AVN Clauses, this Clause is published by AICG, but it is
expressly non-binding and AICG makes no recommendation as to its use in particular
policies. Insurers are of course free to offer different policy wordings and clauses to their
policy holders.

1.1 If this paragraph 1.1 is listed as an operative paragraph in paragraph 1.4 below paragraphs (a) and (c) to (g) of Clause AVN48D are deleted;

1.2 If this paragraph 1.2 is listed as an operative paragraph in paragraph 1.4 below:

For the purposes of sub-paragraph 1.2 (ii), "in flight" shall mean the period commencing from the time the aircraft moves forward in taking off or attempting to take off, whilst in the air, and until the aircraft completes its landing run. A rotor-wing aircraft shall be deemed to be in flight when the aircraft is in the air.

1.3 If this paragraph 1.3 is listed as an operative paragraph in paragraph 1.4 below such of sub-paragraphs (b)(ii),(b)(iii) and (b)(iv) of Clause AVN48D as are listed in paragraph 1.6 are deleted.

1.4 The operative paragraphs are ……….……………………………………………….

1.5(i) The sub-paragraphs referred to in paragraph 1.2(i) that are deleted are……………..

1.5(ii) The sub-paragraphs referred to in paragraph 1.2(ii) that are deleted are…………….

1.6 The sub-paragraphs referred to in paragraph 1.3 that are deleted are………………..

2.(a) EXCLUSIONS applicable generally:

No cover is provided under this Endorsement for claims excluded by sub-paragraph (b)(i) of Clause AVN48D. No cover is provided under paragraph 1.1 of this Endorsement for claims excluded by paragraph (b) of Clause AVN48D.

No cover is provided under this Endorsement by the deletion of sub-paragraph (b)(iv) of Clause AVN48D for claims excluded by sub-paragraph (b) (ii) of Clause AVN48D.

(b) EXCLUSION applicable only to any cover extended by this Endorsement in respect of the deletion of any of paragraph (a), sub-paragraphs (b)(ii), (b)(iii) and (b)(iv) of Clause AVN 48D.

3. LIMITATION OF LIABILITY

4. AUTOMATIC TERMINATION

To the extent provided below, cover extended by this Endorsement shall TERMINATE AUTOMATICALLY in the following circumstances:

(i) All cover

- upon the hostile detonation of any device employing atomic or nuclear fission and/or fusion or other like reaction wheresoever or whensoever such detonation may occur.

5. REVIEW AND CANCELLATION

(a) Review of Premium and/or Geographical Limits (7 days)

Insurers may give notice to review premium and/or geographical limits - such notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which notice is given.

(b) Limited Cancellation (48 hours)

Following a hostile detonation as specified in 4 (ii) above, Insurers may give notice of cancellation of one or more parts of the cover provided by paragraph 1 of this Endorsement by reference to sub-paragraphs (b)(ii), (b)(iii), (b)(iv) and paragraphs (c), (d), (e), (f) and/or (g) of Clause AVN48D - such notice to become effective on the expiry of forty-eight hours from 23.59 hours GMT on the day on which notice is given.

(d) Notices

All notices referred to herein shall be in writing.

AVN 52L 04.8.06

(applicable to coverage provided to service providers)

The endorsement is intended for use with aviation liability policies issued to service providers and, with reference to clause AVN48D, its purpose is to offer flexibility in the write back of combinations of perils other than those set out in sub-paragraph (b)(i) of clause AVN48D, subject to various sub-limits of insurers' liability.

Flexibility is provided by the ability of the parties to select which of the available write back options (termed the operative paragraphs) are to apply and by the choices offered by the available operative paragraphs.

A Guidance Note has been produced at the request of representatives of the buyers of aviation insurance in view of the complexities of the endorsement. The Note can be found on the website of the Aviation Insurance Clauses Group: www.aicg.co.uk

1. The Policy includes the War, Hi-Jacking and Other Perils Exclusion Clause (Clause AVN 48B), but it is NOW AGREED THAT in consideration of an Additional Premium of [ ] the coverage provided by the Policy shall, with effect from [ ], be subject to this Endorsement.

2. COVERAGE

All sub-paragraphs other than [ ] of Clause AVN 48B are deleted with respect to the legal liability of
[ ] /the Insured arising out of the Products Hazard as insured in the Policy.

3. EXCLUSION applicable only to any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B.

Cover shall not include liability for damage to any form of property on the ground situated outside Canada and the United States of America unless caused by or arising out of the use of aircraft.

4. LIMITATION OF LIABILITY

The limit of Insurers’ liability in respect of the coverage provided by this Endorsement shall be
[ ] any one Occurrence and [ ] in the annual aggregate. This limit shall apply within

and not in addition to the full Policy limit.

5. AUTOMATIC TERMINATION

To the extent provided below, cover under this Endorsement shall TERMINATE AUTOMATICALLY in the following circumstances:

(i) All cover

(ii) Any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B

PROVIDED THAT if an aircraft is in the air when (i) or (ii) occurs, then the cover provided by this Endorsement (unless otherwise cancelled, terminated or suspended) shall continue in respect of such an aircraft until completion of its first landing thereafter and any passengers have disembarked.

6. CANCELLATION

(a) Limited Cancellation (48 hours)

Following a hostile detonation as specified in 5 (ii) above, Insurers may give notice of cancellation of one or more parts of the cover provided by this Endorsement by reference to sub-paragraphs (c), (d), (e), (f) and/ or (g) of Clause AVN 48B - such notice to become effective on the expiry of forty-eight hours from 23.59 hours GMT on the day on which notice is given.

(b) Cancellation (7 days)

All notices shall be in writing.

7. This Endorsement is part of Policy No [ ] and is otherwise subject to all terms and conditions of that Policy. Terms defined in the Policy have the same meaning in this Endorsement.

AVN 52P 27.02.06

This clause is published by AICG, but it is expressly not intended to be binding on any market participant. AICG makes no recommendation as to its use in particular policies and recognises that all underwriters are free to offer different policy wordings to their policyholders

NOTES

These notes do not form part of AVN 52P. They are intended to clarify the background to the clause and further to comment on a drafting issue as an aid to interpretation.

1. BACKGROUND NOTE

The limited write-back clause was drafted at the request of Global Aerospace with support from the Aviation Working Group and LMBC. Changes to the original draft were made following publication of amended draft for consultation. The clause is intended to apply to policies issued to aviation manufacturers only, and not to other policies providing coverage for product exposure.

2. DRAFTING NOTE

A number of “blanks” have been inserted for completion by the underwriter and/or the broker. These are largely self explanatory except in Para 2 – where the intention is that this should be completed in respect of any relevant parts of the Insured where a policy may include multiple names or alternatively just the Insured.

1. WHEREAS the Policy of which this Endorsement forms part includes the War, Hi-jacking and Other Perils Exclusion Clause (Clause AVN 48D), IN CONSIDERATION of an Additional Premium of ………….. , it is hereby understood and agreed that with effect from ……………. the liability cover provided by the Policy is extended as set out herein, SUBJECT to all terms, conditions, limitations, warranties, exclusions and cancellation provisions of the Policy except as specifically varied or provided by the terms of this Endorsement.

1.1 If this paragraph 1.1 is listed as an operative paragraph in paragraph 1.4 below paragraphs (a) and (c) to (g) of Clause AVN 48D are deleted;

1.2 If this paragraph 1.2 is listed as an operative paragraph in paragraph 1.4 below:

(i) such of sub-paragraphs (b)(ii), (b)(iii) and (b)(iv) of Clause AVN 48D as are listed in paragraph 1.5 (i) are deleted in respect of claims caused by any of the perils set out in those sub-paragraphs originating solely and directly on board an aircraft, but as respects the Insured’s liability

(a) to the passengers (and for their baggage and personal effects) of any aircraft operator to whom the Policy affords cover for liability to its passengers arising out of its operation of aircraft,

(b) for cargo and mail under the care, custody or control of any aircraft operator to whom the Policy affords cover for liability for such cargo and mail arising out of its operation of aircraft,

the cover provided by this sub-paragraph 1.2 (i) shall apply only to the passengers (and their baggage and personal effects), cargo and mail on board the aircraft on which the perils referred to above originate.

(ii) such of sub-paragraphs (b)(ii) and (b)(iv) of Clause AVN 48D as are listed in paragraph 1.5 (ii) are deleted in respect of claims caused by any of the perils set out in those sub-paragraphs, in so far as claims are caused by reason of the crash fire explosion or collision or a recorded emergency causing abnormal operation of an aircraft whilst in flight and where such peril originates other than solely and directly on board that aircraft, but as respects the Insured’s liability

(a) to the passengers (and for their baggage and personal effects) of any aircraft operator to whom the Policy affords cover for liability to its passengers arising out of its operation of aircraft,

(b) for cargo and mail under the care, custody or control of any aircraft operator to whom the Policy affords cover for liability for such cargo and mail arising out of its operation of aircraft,

the cover provided by this sub-paragraph 1.2 (ii) shall apply only to the passengers (and their baggage and personal effects), cargo and mail on board the aircraft which is the subject of such crash fire explosion or collision or a recorded in flight emergency.

For the purposes of sub-paragraph 1.2 (ii), "in flight" shall mean the period commencing from the time the aircraft moves forward in taking off or attempting to take off, whilst inthe air, and until the aircraft completes its landing run. A rotor-wing aircraft shall be deemed to be in flight when the aircraft is in the air.

1.3 If this paragraph 1.3 is listed as an operative paragraph in paragraph 1.4 below such of sub-paragraphs (b)(ii),(b)(iii) and (b)(iv) of Clause AVN 48D as are listed in paragraph 1.6 are deleted.

1.4 The operative paragraphs are ..............

1.5 (i) The sub-paragraphs referred to in paragraph 1.2(i) that are deleted are

1.5 (ii) The sub-paragraphs referred to in paragraph 1.2(ii) that are deleted are

1.5 The sub-paragraphs referred to in paragraph 1.3 that are deleted are

2. (a) EXCLUSIONS applicable generally:

No cover is provided under this Endorsement for claims excluded by sub-paragraph (b) (i) of Clause AVN 48D.

No cover is provided under paragraph 1.1 of this Endorsement for claims excluded by paragraph (b) of Clause AVN 48D.

No cover is provided under this Endorsement by the deletion of sub-paragraph (b) (iv) of Clause AVN 48D for claims excluded by sub-paragraph (b) (ii) of Clause AVN 48D.

(b) EXCLUSION applicable only to any cover extended by this Endorsement in respect of the deletion of any of paragraph (a), sub-paragraphs (b)(ii), (b)(iii) and (b)(iv) of Clause AVN 48D.

Cover shall not include liability for damage to any form of property on the ground situated outside Canada and the United States of America caused by war, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, martial law, military or usurped power or attempts at usurpation of power, unless caused by or arising out of the use of aircraft.

3. LIMITATION OF LIABILITY

3.1 In respect of the cover provided by paragraph 1.1 of this Endorsement (if it is an operative

paragraph) the limit of Insurers’ liability shall be .................. any one Occurrence and in the annual

aggregate (the "sub-limit"). This sub-limit is included within and is not in addition to the full Policy limit.

To the extent cover is afforded to an Insured under the Policy, this sub-limit shall not apply to such Insured's liability:

(a) to the passengers (and for their baggage and personal effects) of any aircraft operator to whom the Policy affords cover for liability to its passengers arising out of its operation of aircraft;

(b) for cargo and mail while it is on board the aircraft of any aircraft operator to whom the Policy affords cover for liability for such cargo and mail arising out of its operation of aircraft.

3.2 In respect of the cover provided by paragraph 1.2 of this Endorsement (if it is an operative

paragraph) the limit of Insurers’ liability shall be .................. any one Occurrence and in the annual

aggregate. This limit is included within and is not in addition to the sub-limit stated in paragraph 3.1 above.

To the extent cover is afforded to an Insured under the Policy, this limit shall not apply to such Insured's liability:

(b) for cargo and mail while it is on board the aircraft of any aircraft operator to whom the Policy affords cover for liability for such cargo and mail arising out of its operation of aircraft.

3.3 In respect of the cover provided by paragraph 1.3 of this Endorsement (if it is an operative

paragraph) the limit of Insurers' liability shall be .................. any one Occurrence and in the annual

aggregate. This limit is included within and is not in addition to the sub-limit stated in paragraph 3.1 above.

To the extent cover is afforded to an Insured under the Policy, this limit shall not apply to such Insured's liability:

(a) to the passengers (and for their baggage and personal effects) of any aircraft operator to whom the Policy affords cover for liability to its passengers arising out of its operation of aircraft;

(b) for cargo and mail while it is on board the aircraft of any aircraft operator to whom the Policy affords cover for liability for such cargo and mail arising out of its operation of aircraft.

The limit of Insurers' liability under (a) and (b) above shall be the following limits which are within and are not in addition to the full Policy limit:

For liability in respect of passengers: ............... per passenger

For liability in respect of passengers’ baggage and personal effects: ......................................................................................................... per passenger

For liability in respect of cargo and mail: ................ per kilogram

4. AUTOMATIC TERMINATION

To the extent provided below, cover extended by this Endorsement shall TERMINATE AUTOMATICALLY in the following circumstances:

(i) All cover

(ii) Any cover extended by the deletion of paragraph (a) of Clause AVN 48D, and any cover extended by the deletion of sub-paragraphs (b)(ii), (b)(iii) and (b)(iv) of Clause AVN 48D with respect to claims that are also caused by a peril set out in paragraph (a) of AVN 48D.

(iii) All cover with respect to any aircraft insured under the Policy that is requisitioned for either title or use

- upon such requisition

PROVIDED THAT if any aircraft insured under the Policy is in the air when the cover provided by this Endorsement would thereby be terminated under (i), (ii) or (iii) of this paragraph, then the cover provided by this Endorsement (unless otherwise cancelled, terminated or suspended) shall continue in respect of such an Aircraft until completion of its first landing thereafter and any passengers have disembarked.

5. REVIEW AND CANCELLATION

(a) Review of Premium and/or Geographical Limits (7 days)

Insurers may give notice to review premium and/or geographical limits - such notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which notice is given.

(b) Limited Cancellation (48 hours)

Following a hostile detonation as specified in 4 (ii) above, Insurers may give notice of cancellation of one or more parts of the cover provided by paragraph 1 of this Endorsement by reference to sub-paragraphs (b)(ii), (b)(iii), (b)(iv) and paragraphs (c), (d), (e), (f) and/or (g) of Clause AVN48D - such notice to become effective on the expiry of forty-eight hours from 23.59 hours GMT on the day on which notice is given.

(d) Notices

All notices referred to herein shall be in writing.

AVN 52R 01/05/2007 (applicable to coverage provided to aircraft operators)

AVIATION INSURANCE CLAUSES GROUP

This note refers to AVN 52K which was published by AICG in August 2006.

One of the principles on which AVN 52K was based was that coverage for written back risks arising from a peril listed in paragraphs b(ii) – b(iv) inclusive of AVN 48D, would be restricted to individually negotiated sub-limits that would apply to all covered aircraft.

However, the intention of AVN 52K was also to provide the option to include cover for full policy limits to apply to claims for the loss of passengers, their baggage, cargo and mail on board an aircraft on which a device had been placed or, in the case of perils listed in paragraphs b(ii) and b(iv) of AVN 48D, are on board an aircraft that is subject to a recorded emergency while in flight. Any other aircraft affected by such an attack were intended to be subject to any sub-limits negotiated.

It has been brought to our notice that in certain circumstances, it is possible that full policy limits can be exposed if, for example, a WMD device placed on board an aircraft at an airport caused loss or damage to other aircraft owned or operated by the same airline or to aircraft of other airlines that also have the same cover, then all these aircraft would have full policy limits for passengers, baggage, cargo and mail. This would breach the original principle that such a full policy limit should be restricted to a single aircraft in the case of claims brought under paragraph 1.2 (i) of AVN 52K and to aircraft in flight in the case of claims brought under paragraph 1.2 (ii).

AICG has reconsidered clause AVN 52K and, in order to remove any ambiguity, has decided to publish a modification. In order to avoid confusion, the new clause is published as AVN 52R.

AICG 02/07/2007

It is hereby understood and agreed that .......................................................................... аre added as an additional insured but only insofar as their interests arise as owners (in whole or in part) of the insured aircraft and only with respect to the operation of the aircraft by the named insured.

This endorsement does not provide coverage for the additional insured with respect to claims arising out of their legal liability as manufacturers, repairers, suppliers or servicing agents and shall not operate to prejudice insurers' rights of recourse against the additional insured as manufacturers, repairers, suppliers or servicing agents where such rights of recourse would have existed had this endorsement not been effected under this policy.

This endorsement attaches to and forms part of policy no. ............................................................... and is effective from the ......................................................................................................................

AVN 53 1.10.96

In consideration of an additional premium of .................................. it is understood and agreed that in addition to the aircraft declared hereunder, cover granted under this policy applies to aircraft used by the named insured but not so declared, always provided the named insured :

1. has no interest in the aircraft as owner in whole or in part

2. exercises no part in the servicing or maintenance of the aircraft

3. exercises no part in the appointment or provision of personnel for the operation of the aircraft.

This endorsement does not apply :

(a) to liability arising out of any product manufactured, sold, handled or distributed by the named insured

(b) to any aircraft having a seating capacity, including crew, in excess of ..........................

(d) when the aircraft is used by the named insured for hire and reward.

All other terms and conditions of the policy remain unchanged.

AVN 54 1.10.96

Any claim in respect of an engine is restricted to loss or damage caused by theft, lightning, flood, outbreak of fire external to the engine or by sudden and unexpected impact with a foreign object requiring immediate withdrawal of the engine from service.

As used herein "engine" means an engine for propulsion or auxiliary power complete with all parts necessary for test cell running.

Subject otherwise to all terms and conditions of the policy.

AVN 56 10.12.80

D.O.T. 14 CFR PART 205

(hereinafter called "part 205")

Attaching to and forming part of policy no.

Issued in the name of

It is understood and agreed that:–

1. The policy to which this endorsement is attached is hereby amended to provide coverage in compliance with the provisions of part 205.

2. Such coverage shall be within the limits of liability in the policy and not in addition to or in excess thereof.

3. Such coverage shall continue until cancelled by insurers or their authorized representative giving the appropriate notice.

4. Unless the policy otherwise provides the following exclusions not prohibited by the provisions of part 205 shall apply:-

(i) war exclusions clause AVN48b paragraphs (a) and (b) or equivalent clause(s).

(ii) noise and pollution and other perils exclusion clause AVN46b or equivalent clause(s).

(iii) nuclear risks exclusion clause AVN38b or equivalent clause(s).

(iv) bodily injury to or sickness disease or death of any employee arising out of and in the course of his/her employment.

(v) injury to or destruction of property owned rented leased or loaned to or occupied or used by the insured.

5. If insurers are called upon to provide coverage to the insured in compliance with part 205 including the defence and legal costs associated therewith and if by reason of the terms conditions, limitations and exclusions of the policy such coverage would not have been provided except for this endorsement then the insured will reimburse insurers for such payments made in providing coverage under part 205.

6. The terms conditions, limitations and exclusions of the policy shall apply to claims made under the policy which (a) are in excess of the limits specified in part 205 or (b) are not governed by the provisions of part 205.

AVN 57A (USA) 1.10.96.

CIVIL AVIATION (CARRIERS’ LIABILITY) ACT 1959 - AUSTRALIA

(applicable to passenger liability only)

Attaching to and forming part of policy no.

Issued in the name of

It is understood and agreed that:-

1. The policy to which this endorsement is attached is hereby amended to provide coverage in compliance with the prescribed requirements referred to in part IVa subsection 41c(2) of the civil aviation (carriers’ liability) act 1959.

2. Such coverage shall be within the limits of liability in the policy and not in addition to or in excess thereof.

3. Such coverage shall continue until cancelled by insurers or their authorized representative giving the appropriate notice.

4. Unless the policy otherwise provides the following exclusions not prohibited by the provisions of the said act shall apply:-

4.1. war exclusion clause AVN48b paragraphs (a) and (b) or equivalent clause(s).

4.2. noise and pollution and other perils exclusion clause AVN46b or equivalent clause(s).

4.3. nuclear risks exclusion clause AVN38b or equivalent clause(s).

4.4. bodily injury to or sickness, disease or death of any employee arising out of and in the course of his/her employment.

5. The coverage for personal injury as required by the said act to be provided by the policy to which this endorsement is attached shall be understood to mean bodily injury, sickness, disease, fright, shock or mental anguish including death resulting therefrom.

6. If insurers are called upon to provide coverage to the insured in compliance with the said act including the defence and legal costs associated therewith and if by reason of the terms, conditions, limitations and exclusions of the policy such coverage would not have been provided except for this endorsement then the insured will reimburse insurers for such payments made in providing coverage under the said act.

7. The terms, conditions, limitations and exclusions of the policy shall apply to claims made under the policy which (a) are in excess of the limits specified in the said act or (b) are not governed by the provisions of the said act.

AVN 57A (Australia) 1.10.96

Switzerland Air Navigation Act 21st December 1948

Air Navigation Decree 14th November 1973

(hereinafter called "the acts")

It is understood and agreed that:-

1) The policy to which this endorsement is attached is hereby amended to provide cover as required by the regulations of the acts in respect of bodily injury or property damage caused to third parties on the ground up to the limits specified therein.

2) Such coverage shall be within the limits of liability in the policy and not in addition to or in excess thereof.

3) Unless the policy otherwise provides the following exclusions apply:-

(i) war hijacking and other perils exclusion clause AVN48B paragraphs (a) and (b) or equivalent clause(s).

(ii) noise and pollution and other perils exclusion clause AVN48B, or equivalent clause(s).

(iii) nuclear risks exclusion clause AVN.38B or equivalent clause(s).

(iv) bodily injury to or sickness, disease or death of any employee arising out of and in the course of his/her employment.

(v) injury to or destruction of property owned rented leased or loaned to or occupied or used by the insured.

4) If insurers are called upon to provide coverage to the insured in compliance with the said air navigation act or air navigation decree including the defence and legal costs associated therewith and if by reason of the terms, conditions, limitations and exclusions of the policy such coverage would not have been provided except for the provisions of this endorsement then the insured will reimburse the insurers for such payments made in providing such coverage.

5) The terms, conditions, limitations and exclusions of the policy shall continue to apply to claims made under the policy which (a) are in excess of the limits specified above or (b) are not governed by the said air navigation act or air navigation decree.

AVN 57A (Switzerland) 1.10.96

CANADIAN TRANSPORTATION AGENCY

AIR TRANSPORTATION REGULATIONS:

PRESCRIBED LIABILITY INSURANCE COVERAGE - SECTION 7

(HEREINAFTER CALLED "SECTION 7")

Attaching to and forming part of policy no.

Issued in the name of

It is understood and agreed that:-

1. The policy to which this endorsement is attached is hereby amended to provide coverage in compliance with the provisions of section 7.

2. Such coverage shall be within the limits of liability in the policy and not in addition to or in excess thereof.

3. Unless the policy otherwise provides and to the extent permitted by the provisions of Section 7, the following exclusions shall apply:-

(i) war exclusions clause AVN48B paragraphs (a) and (b) or equivalent clause(s).

(ii) noise and pollution and other perils exclusion clause AVN46b or equivalent clause(s).

(iii) nuclear risks exclusion clause AVN38B or equivalent clause(s).

(iv) bodily injury to or sickness disease or death of any employee arising out of and in the course of his/her employment.

(v) injury to or destruction of property owned rented leased or loaned to or occupied or used by the insured.

4. If insurers are called upon to provide coverage to the insured in compliance with section 7 including the defence and legal costs associated therewith and if by reason of the terms conditions limitations and exclusions of the policy such coverage would not have been provided except for this endorsement then the insured will reimburse insurers for such payments made in providing coverage under section 7.

5. The terms conditions limitations and exclusions of the policy shall apply to claims made under the policy which (a) are in excess of the limits specified in section 7 or (b) are not governed by the provisions of section 7.

AVN 57C (Canada) 1.10.96

It is noted and agreed that the reinsured hereon has endorsed the original policy with AVN57A (USA) (or such other clauses as may be agreed) falling under D.O.T. 14 CFR Part 205.

All reinsurers hereon agree to follow except that their liability will cease on (* ) unless specifically agreed by all reinsurers hereon.

*hereon insert expiry date of policy.

AVN 58A (USA) ® 1.10.96.

This policy does not cover the insured's liability unless it arises from one or more of the following:-

1. Occurrences involving aircraft or parts or equipment relating thereto.

2. Occurrences arising at airport locations.

3. Occurrences arising at any other location in connection with the insured's business of transporting passengers or goods by air.

4. Occurrences arising out of the supply of goods or services to others (i) in connection with the use and/or operation of aircraft (ii) involved in the air transport industry.

AVN 59 1.10.96

The insurance provided by this policy extends to indemnify the insured for legal liability for damages awarded to any person arising out of one or more of the following offences committed during the policy period but only where such offences are committed in connection with that part of the insured’s aviation operations or interests for which other coverage is granted by the policy:-

1. false arrest, restraint, detention or imprisonment.

2. malicious prosecution.

3. wrongful entry, eviction or other invasion of the right of private occupancy.

4. inadvertent discrimination with respect to withholding or refusal of transportation except with respect to overbooking.

5. the publication or utterance of a libel or slander or of other defamatory or disparaging material in violation of an individual's right of privacy except publication or utterance in the course of or related to advertising, broadcasting or telecasting activities conducted by or on behalf of the named insured.

6. incidental medical malpractice error or mistake by a physician, surgeon, nurse, medical technician or other person performing medical services but only for or on behalf of the insured in the provision of emergency medical relief.

The following additional exclusions shall apply to the insurance provided by this extension:-

(a) liability assumed by the named insured under any contract or agreement

(b) personal injury arising out of the wilful violation of penal statute or ordinance committed by or with the knowledge or consent of the named insured

(i) if the first injurious publication or utterance of the same or similar material was made prior to the effective date of this insurance

(ii) if such publication or utterance was made by or at the direction of the insured with the knowledge of the false nature thereof

(d) liability for personal injury sustained by any person directly or indirectly related to the past, present or potential employment of such person by the insured.

The limit of liability applicable to this extension shall be ................................... in the aggregate during the policy period being within the overall policy limit and not in addition thereto.

All other terms and conditions of this policy remain unchanged.

AVN 60А 24.12.2004

The foregoing provision shall not apply to claims arising in respect of partial loss or damage where Insurers shall retain the right to repair, replace or make good as they deem expedient.

AVN 61 1.10.96

Provided always that Insurers' liability shall not exceed .................................. in respect of any one search and rescue operation and in the aggregate.

This clause does not extend the Policy to cover salvage costs and expenses.

All other terms and conditions of this Policy remain unchanged.

AVN 62 1.10.96

Original Insured:

AVN 63 1.10.96

After expiry of the Policy and following the receipt by the Insurers of the final adjustment of the premium due in respect of this period of insurance and subject to renewal with the Insurers hereon, Insurers agree to return to the Insured a provisional profit commission of ..................% of the net ascertained profit in respect of this period of insurance.

The net ascertained profit shall be calculated by deducting the 'outgo' from the 'income' as follows:-

Income

...................% of premium less all returns of premium.

Outgo

(1) All settled claims and related expenses less any salvages and recoveries.

(2) Insurers' reserves for all claims outstanding and related expenses.

Thereafter, adjustments to the provisional profit commission calculated shall be made on an annual basis until all outstanding claims have been settled or unless otherwise mutually agreed between the Insurers and the Insured.

AVN 64A 1.10.96

After expiry of the Policy and following the receipt by the Insurers of the final adjustment of all premiums due and settlement of all claims in respect of this period of insurance and subject to renewal with the Insurers hereon, Insurers agree to return to the Insured a profit commission of .....................% of the net ascertained profit in respect of this period of insurance.

The net ascertained profit shall be calculated by deducting the 'outgo' from the 'income' as follows:-

Income

..................% of premium less all returns of premium.

Outgo

Total of settled claims and related expenses less any salvages and recoveries.

AVN 64B 1.10.96

It is agreed that in the event of the failure of the Insurers hereon to pay any amount claimed to be due hereunder, the Insurers hereon, at the request of the Insured, will submit to the jurisdiction of a Court of competent jurisdiction within the United States. Nothing in this Clause constitutes or should be understood to constitute a waiver of Insurers' rights to commence an action in any Court of competent jurisdiction in the United States, to remove an action to a United States District Court, or to seek a transfer of a case to another Court as permitted by the laws of the United States or of any State in the United States. It is further agreed that service of process in such suit may be made upon
........................................................................................................................................................
........................................................................................................................................................and that in any suit instituted against any one of them upon this contract, Insurers will abide by the final decision of such Court or of any Appellate Court in the event of an appeal.

The above-named are authorized and directed to accept service of process on behalf of Insurers in any such suit and/or upon the request of the Insured to give a written undertaking to the Insured that they will enter a general appearance upon Insurers' behalf in the event that such a suit shall be instituted.

Further, pursuant to any statute of any state, territory or district of the United States which makes provision therefor, Insurers hereon hereby designate the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute, or his successor or successors in office, as their true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the Insured or any beneficiary hereunder arising out of this contract of insurance, and hereby designate the above-named as the person to whom the said officer is authorized to mail such process or a true copy thereof.

AVN 65 10.8.87

DECLARATIONS

Item 1. Name of Insured:

Address:

Item 2. Policy Period

Effective Date: 12.01 a.m.

Expiration Date: 12.01 a.m.

Standard time at the address of the Insured

Item 3. Premium:

Item 4. Limits of Liability

Insuring Agreement I Coverage A $ aggregate

Insuring Agreement II Coverage B $ aggregate

Insuring Agreement I Coverage A and $ aggregate

Insuring Agreement II Coverage B

AVN 66 14.9.90

LONDON MARKET AVIATION PRODUCTS LIABILITY POLICY WORDING

In consideration of the payment to the Insurers of the premium stated in the Declarations and in reliance upon the information provided by the Insured to the Insurers, the Insurers hereby agree subject to all of the terms conditions limitations and exclusions contained in the Policy, to indemnify the Insured in respect of Occurrences and Groundings during the policy period as follows:–

INSURING AGREEMENT

I Coverage A - Bodily Injury and Property Damage Liability

To pay on behalf of the Insured all sums which the Insured shall become legally obligated to pay as damages because of bodily injury including care and loss of services, sickness or disease including death at any time resulting therefrom sustained by any person and because of damage to or destruction of property including the loss of use thereof, caused by an Occurrence which takes place during the Policy period and which arises out of the Products Hazard.

II Coverage B - Grounding Liability

To pay on behalf of the Insured all sums which the Insured shall become legally obligated to pay as damages for the loss of use of completed aircraft occurring after delivery to and acceptance by a purchaser or purchasers or operator or operators of such aircraft for flight operations, and caused by a Grounding resulting from an Occurrence which takes place during the Policy period and which arises out of the Products Hazard.

III Defence, Settlements and Other Payments

To defend any claim or suit against the Insured alleging cause or causes of action to which this Policy applies, even if such claim or suit is groundless, false or fraudulent, and to pay all expenses incurred in the investigation, negotiation, settlement or other disposition of such claim or suit, including all costs recoverable against the Insured, all interest on the claim or any judgement rendered thereon, all premiums on bonds to release attachments for an amount not in excess of the applicable limit of this Policy, all premiums on appeal bonds required in any such suit but without any obligation to apply for or furnish any such bond. However, Insurers may make such investigation, negotiation, settlement or other disposition of any claim or suit as they deem expedient.

IV Reimbursement of Insured’s Expenses

To reimburse the Insured for reasonable expenses incurred at the Insurers’ request, other than (i) loss of earnings to the Insured and (ii) expenses incurred for the elimination of the cause of loss of use.

With respect to Insuring Agreements III and IV, once the applicable limit of liability as stated in Condition 1 of this Policy has been exhausted by payment of judgements, settlements or payments as provided for in Insuring Agreements I and II above, then Insurers’ obligations under Insuring Agreements III and IV of this Policy shall have been fully discharged, and they shall not have any further obligation to defend, investigate, negotiate, settle or otherwise dispose of any claim or suit made or brought against the Insured, or to pay for the expenses thereof, or to reimburse the Insured for any of their expenses incurred in connection with any claim or suit.

DEFINITIONS

(a) “PRODUCTS HAZARD” means the handling or use of or the existence of any condition in an Aircraft Product, provided such Aircraft Product has ceased to be in the possession or under the control of the Insured.

A completed aircraft, the property of others, temporarily returned to the Insured shall be deemed not to be in the possession or under the control of the Insured.

(b) “GROUNDING” means the complete and continuous withdrawal from all flight operations at or about the same time of one or more aircraft due to a mandatory order of the Federal Aviation Administration of the United States of America (FAA), or the Civil Aviation Authority of the United Kingdom (CAA), or any similar Civil Airworthiness Authority, because of an existing, alleged or suspected like defect, fault or condition affecting the safe operation of two or more like aircraft and which results from an Occurrence.

A Grounding shall be deemed to commence from the date on which the first such order becomes effective following an Occurrence during the Policy period and to continue until the date on which the last such order relating to the same existing, alleged or suspected like defect, fault or condition is withdrawn or becomes ineffective.

Such Grounding shall be deemed to fall in the Policy period of the Occurrence which exposed such defect, fault or condition.

(c) “AIRCRAFT PRODUCTS ”means aircraft, airships, missiles, spacecraft, launch vehicles, helicopters, rockets, balloons, gliders, microlights, remote piloted vehicles, air cushioned vehicles or any article forming part thereof, or supplied for installation therein, or used in connection therewith including related advice and services.

(d) “OCCURRENCE” means an accident which is neither expected nor intended including injurious exposure to conditions (other than a Grounding) occurring during the Policy period and which arises out of the Products Hazard and causes bodily injury including care and loss of services, sickness or disease, including death at any time resulting therefrom, or damage to or destruction of property, including the loss of use thereof. A series of related Occurrences shall be treated as a single Occurrence hereunder.

(e) “INSURED” means the Insured(s) named in Item 1 of the Declarations and also includes any business entity or subsidiary to such Insured(s) provided the Insured(s) have more than 50% interest in such entity and also includes any partner, executive officer, director, employee or stockholder thereof, while acting within the scope of their duties as such.

f) “MILITARY” as applied to Aircraft Products means such Aircraft Products while owned or used by or in the possession of the armed services of any government, however an Aircraft Product leased or chartered to the armed services of any government shall be deemed not to be a Military Aircraft Product.

g) “OWNED BY” – With respect to any Aircraft Product to which an Insured has retained title pursuant to a) a conditional sale contract, chattel mortgage or similar lien, b) a lease agreement or c) a consignment agreement or similar contract of bailment, such Aircraft Product shall be deemed not to be Owned By the Insured.

h) “LAUNCH VEHICLE” means any device the purpose of which is to transport any person or article to, from or in space.

This policy does not apply:–

(a) to liability arising out of the handling or use of, or the existence of any condition in any Aircraft Products which are Owned By, loaned to, in the possession or under the control of, or used in the interest of the Insured;

(b) to damage to or destruction of property, including the loss of use of such property Owned By, rented, leased, occupied or used by or in the care, custody or control of the Insured;

(c) to liability assumed by the Insured under any contract or agreement unless such liability would have attached to the Insured even in the absence of such Agreement;

(d) to bodily injury to, including care and loss of services or sickness, disease or death at any time resulting therefrom of any employee of the Insured arising out of and in the course of his employment by the Insured;

(e) to loss of use of any aircraft, the cause of which the Insured does not use reasonable diligence to eliminate;

(f) to any costs incurred which are statutorily imposed upon the Insured, or which have been assumed with respect to aircraft products sold under a warranty, guarantee or sales agreement;

(g) to damage to or destruction of or loss of use of any launch vehicle;

(h) 1. to claims directly or indirectly occasioned by, happening through or in consequence of:–

(a) noise (whether audible to the human ear or not), vibration, sonic boom and any phenomena associated therewith,

(b) pollution and contamination of any kind whatsoever,

(d) interference with use of property;

unless caused by or resulting in a crash fire explosion or collision or a recorded in-flight emergency causing abnormal aircraft operation.

2. With respect to any provision in the Policy concerning any duty of Insurers to investigate or defend claims, such provision shall not apply and Insurers shall not be required to defend

(a) claims excluded by Paragraph 1 of this exclusion (h) or

(b) a claim or claims covered by the Policy when combined with any claims excluded by Paragraph 1 of this exclusion (h) (referred to below as “Combined Claims”).

(i) damages awarded against the Insured and

(ii) defence fees and expenses incurred by the Insured.

4. Nothing herein shall override any radioactive contamination or other exclusion clause attached to or forming part of this Policy.

EXCLUSIONS APPLICABLE TO COVERAGE A

This Policy does not apply:-

(a) to costs and expenses incurred by the Insured or to damages claimed for the withdrawal, inspection, repair, replacement, modification, loss of use, or restricted use of Aircraft Products or work completed by or for the Insured or any property of which such products or work form a part, if such products, work or property are withdrawn from the market or from use or subject to restricted use because of any defect or deficiency therein;

(b) to damage to or destruction of including loss of use of any Military Aircraft Products except when damage or destroyed by a non-military Aircraft Product.

EXCLUSION APPLICABLE TO COVERAGE B

This Policy does not apply:-

(a) to any aircraft which is designated by the manufacturer or required by direction of the FAA, CAA or similar Civil Airworthiness Authority to be removed from all flight operations due to the certificate of airworthiness being withdrawn by reason of the aircraft’s safe operational life having been reached or exceeded;

(b) to any Military Aircraft Products;

(c) to any aircraft while withdrawn from service for the primary purpose of maintenance, routine overhaul, alternation or modification of the aircraft.

CONDITIONS

1. Limit of Liability

Regardless of the number of Insureds under this Policy Insurers’ Liability is limited as follows:–

Insuring Agreement I COVERAGE A

The total liability of Insurers for all damages sustained by one or more persons or organisations as the result of Occurrences during the Policy period shall not exceed the limit of liability stated in the Declarations as aggregate.

Insuring Agreement II COVERAGE B

The total liability of Insurers for all damages sustained by one or more persons or organisations as the result of Groundings shall not exceed the limit of liability stated in the Declarations as aggregate.

The total liability of the Insurers for all damages under Insuring Agreement I Coverage A and Insuring Agreement II Coverage B combined shall not exceed the limit of liability stated in the Declarations as aggregate.

2. Notice of Occurrence/Grounding

When an Occurrence or Grounding takes place, written notice shall be given by or on behalf of the Insured to the Insurers through their authorized agents as soon as practicable. Such notice shall contain particulars sufficient to identify the Insured and also all reasonably obtainable information respecting the time, date, place and circumstances of the Occurrence or Grounding.

. 3. Notice of Claim or Suit

If a claim or suit is brought against the Insured and the Insured shall as soon as practicable forward to the Insurers’ authorized agents every demand notice, summons, or other process received by him or his representative.

The Insured shall not voluntarily make any payment, assume any obligation nor incur any expense without the prior approval of the Insurers.

4. Assistance and Co-operation of the Insured

The Insured shall co-operate with the Insurers and, upon the Insurers’ request, shall attend hearings and trials and shall assist in effecting settlements, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of suits.

5. Action against Insurers

No action shall lie against the Insurers unless as a condition precedent thereto, the Insured shall have fully complied with all the terms of this Policy, nor until the amount of the Insured’s obligation to pay shall have been finally determined either by judgement against the Insured after actual trial or by written agreement of the Insured, the claimant and the Insurers. Any person or organisation or the legal representative thereof who has secured such judgement or written agreement shall thereafter be entitled to recover under this Policy to the extent of the insurance afforded by this Policy. Nothing contained in this Policy shall give any person or organisation any right to join the Insurers as a co-defendant in any action against the Insured to determine the Insured’s liability.

Bankruptcy or insolvency of the Insured shall not relieve the Insurers of any of their obligations under this Policy.

6. Other Insurance

If the Insured has other insurance against a loss covered by this Policy, this Policy shall not be liable for a greater proportion of such loss than the applicable limit of liability stated in the Declarations bears to the total applicable limit of all insurances against such loss. If any insurance is specifically arranged by or for the Insured for a sum in excess of the limit of liability afforded by this Policy then the liability of the Insurers to pay any defence settlements and other payments in connection therewith shall be limited to such proportion of the said defence settlements and other payments as the applicable limit of liability afforded by this Policy bears to the amount paid to dispose of the claim.

7. Subrogation

In the event of any payment under this Policy, the Insurers shall be entitled to all of the Insured’s rights of recovery against any person or organisation and the Insured shall execute and deliver instruments and papers and do whatever else is necessary to secure such rights.

The Insured shall do nothing after loss to prejudice such rights.

Nothing herein contained, however, shall bar the Insured from waiving its rights of recovery against any Government.

8. Material Change

Should there be any material change in the circumstances or nature of the risks which are the basis of this Policy the Insured shall give immediate notice thereof to the Insurers and no claim arising subsequent to such change shall be recoverable hereunder unless such change has been accepted by the Insurers.

9. Assignment

This Policy shall not be assigned in whole or in part except with the consent of the Insurers verified by endorsement hereon.

10. Conflicting Statutes

Such insurance as is afforded by this Policy shall comply with the statutes relating to this insurance including defence and legal costs associated therewith. However, the foregoing shall not apply to any type of coverage not afforded by this Policy nor shall it apply to any amount or amounts in excess of the limit or limits of liability provided in the Policy. The Insured agrees to reimburse the Insurers for any payment made by the Insurers which the Insurers would not have been obligated to make under the terms of this Policy but for the agreement contained in this paragraph.

11. Cancellation

This Policy may be cancelled by the Insured by surrender thereof or by mailing to the Insurers written notice stating when thereafter such cancellation shall be effective. This Policy may be cancelled by the Insurers by mailing to the Insured at the address shown in this Policy written notice stating when not less than 30 days thereafter such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice and the effective date and hour of cancellation stated in the notice shall become the end of the Policy period. Delivery of such written notice either by the Insured or by the Insurers shall be equivalent to mailing.

If the Insured cancels, earned premium shall be computed in accordance with the short rate table below. If the Insurers cancel, earned premiums shall be computed pro rata. Premium adjustment may be made at the time cancellation is effected and, if not then made, shall be made as soon as practicable after cancellation becomes effective.

12. Misrepresentation

By acceptance of this Policy the Insured agrees that the information provided for this insurance are his representations and that this Policy is issued in reliance upon the truth of such representations. Any intentional misrepresentation by the Insured or his duly authorized representative or agent will void this Policy.

13. Inadvertent Errors and Omissions

Inadvertent errors, omissions or failure to give notice to Insurers as herein required shall not relieve the Insurers of liability under this Policy, provided that any such error or omission shall be corrected as soon as discovered.

SHORT RATE CANCELLATION TABLE

Days	Per cent. of	Days	Per cent. of
Policy	One Year	Policy	One Year
in Force	Premium	in Force	Premium

1 .......................................... 5............... 154-156 ....... 53

2 .......................................... 6............... 157-160 ....... 54

3-4 .......................................... 7............... 161-164 ....... 55

5-6 .......................................... 8............... 165-167 ....... 56

7-8 .......................................... 9............... 168-171 ....... 57

9-10 ........................................ 10............... 172-175 ....... 58

11-12 ........................................ 11............... 176-178 ....... 59

13-14 ........................................ 12............... 179-182 (6 months) 60

15-16 ........................................ 13............... 183-187 ....... 61

17-18 ........................................ 14............... 188-191 ....... 62

19-20 ........................................ 15............... 192-196 ....... 63

21-22 ........................................ 16............... 197-200 ....... 64

23-25 ........................................ 17............... 201-205 ....... 65

26-29 ........................................ 18............... 206-209 ....... 66

30-32 (1 month).......................... 19............... 210-214 (7 months) 67

33-36 ........................................ 20............... 215-218 ....... 68

37-40 ........................................ 21............... 219-223 ....... 69

41-43 ........................................ 22............... 224-228 ....... 70

44-47 ........................................ 23............... 229-232 ....... 71

48-51 ........................................ 24............... 233-237 ....... 72

52-54 ........................................ 25............... 238-241 ....... 73

55-58 ........................................ 26............... 242-246 (8 months) 74

59-62 ( 2 months)....................... 27............... 247-250 ....... 75

63-65 ........................................ 28............... 251-255 ....... 76

66-69 ........................................ 29............... 256-260 ....... 77

70-73 ........................................ 30............... 261-264 ....... 78

74-76 ........................................ 31............... 265-269 ....... 79

77-80 ........................................ 32............... 270-273 (9 months) 80

81-83 ........................................ 33............... 274-278 ....... 81

84-87 ........................................ 34............... 279-282 ....... 82

88-91 ( 3 months)....................... 35............... 283-287 ....... 83

92-94 ........................................ 36............... 288-291 ....... 84

95-98 ........................................ 37............... 292-296 ....... 85

99-102 ........................................ 38............... 297-301 ....... 86

103-105 ........................................ 39............... 302-305 (10 months) 87

106-109 ........................................ 40............... 306-310 ....... 88

110-113 ........................................ 41............... 311-314 ....... 89

114-116 ........................................ 42............... 315-319 ....... 90

117-120 ........................................ 43............... 320-323 ....... 91

121-124 (4 months)........................ 44............... 324-328 ....... 92

125-127 ....................................... .45............... 329-332 ....... 93

128-131 ........................................ 46............... 333-337 (11 months) 94

132-135 ........................................ 47............... 338-342 ....... 95

136-138 ........................................ 48............... 343-346 ....... 96

139-142 ........................................ 49............... 347-351 ....... 97

143-146 ........................................ 50............... 352-355 ....... 98

147-149 ........................................ 51............... 356-360 ....... 99

150-153 (5 months)........................ 52............... 361-365 (12 months) 100

It is noted that the Contract Party(ies) have an interest in respect of the Equipment under the Contract(s). Accordingly, with respect to losses occurring during the period from the Effective Date until the expiry of the Insurance or until the expiry or agreed termination of the Contract(s) or until the obligations under the Contract(s) are terminated by any action of the Insured or the Contract Party(ies), whichever shall first occur, in respect of the said interest of the Contract Party(ies) and in consideration of the Additional Premium it is confirmed that the Insurance afforded by the Policy is in full force and effect and it is further agreed that the following provisions are specifically endorsed to the Policy:-

1. Under the Hull and Aircraft Spares Insurances

1.1 In respect of any claim on Equipment that becomes payable on the basis of a Total Loss, settlement (net of any relevant Policy Deductible) shall be made to, or to the order of the Contract Party(ies). In respect of any other claim, settlement (net of any relevant Policy Deductible) shall be made with such party(ies) as may be necessary to repair the Equipment unless otherwise agreed after consultation between the Insurers and the Insured and, where necessary under the terms of the Contract(s), the Contract Party(ies).

Such payments shall only be made provided they are in compliance with all applicable laws and regulations.

1.2 Insurers shall be entitled to the benefit of salvage in respect of any property for which a claims settlement has been made.

2. Under the Legal Liability Insurance

2.1 Subject to the provisions of this Endorsement, the Insurance shall operate in all respects as if a separate Policy had been issued covering each party insured hereunder, but this provision shall not operate to include any claim howsoever arising in respect of loss or damage to the Equipment insured under the Hull or Spares Insurance of the Insured. Notwithstanding the foregoing the total liability of Insurers in respect of any and all Insureds shall not exceed the limits of liability stated in the Policy.

2.2 The Insurance provided hereunder shall be primary and without right of contribution from any other insurance which may be available to the Contract Party(ies).

2.3 This Endorsement does not provide coverage for the Contract Party(ies) with respect to claims arising out of their legal liability as manufacturer, repairer, or servicing agent of the Equipment.

3. Under ALL Insurances

3.1 The Contract Party(ies) are included as Additional Insured(s).

3.2 The cover afforded to each Contract Party by the Policy in accordance with this Endorsement shall not be invalidated by any act or omission (including misrepresentation and non-disclosure) of any other person or party which results in a breach of any term, condition or warranty of the Policy PROVIDED THAT the Contract Party so protected has not caused, contributed to or knowingly condoned the said act or omission.

3.3 The provisions of this Endorsement apply to the Contract Party(ies) solely in their capacity as financier(s)/lessor(s) in the identified Contract(s) and not in any other capacity. Knowledge that any Contract Party may have or acquire or actions that it may take or fail to take in that other capacity (pursuant to any other contract or otherwise) shall not be considered as invalidating the cover afforded by this Endorsement.

3.1 The Contract Party(ies) shall have no responsibility for premium and Insurers shall waive any right of set-off or counterclaim against the Contract Party(ies) except in respect of outstanding premium in respect of the Equipment.

3.2 Upon payment of any loss or claim to or on behalf of any Contract Party(ies), Insurers shall to the extent and in respect of such payment be thereupon subrogated to all legal and equitable rights of the Contract Party(ies) indemnified hereby (but not against any Contract Party). Insurers shall not exercise such rights without the consent of those indemnified, such consent not to be unreasonably withheld. At the expense of Insurers such Contract Party(ies) shall do all things reasonably necessary to assist the Insurers to exercise said rights.

3.3 Except in respect of any provision for Cancellation or Automatic Termination specified in the Policy or any endorsement thereof, cover provided by this Endorsement may only be cancelled or materially altered in a manner adverse to the Contract Party(ies) by the giving of not less than Thirty (30) days notice in writing to the Appointed Broker. Notice shall be deemed to commence from the date such notice is given by the Insurers. Such notice will NOT, however, be given at normal expiry date of the Policy or any endorsement.

EXCEPT AS SPECIFICALLY VARIED OR PROVIDED BY THE TERMS OF THIS ENDORSEMENT:-

1. THE CONTRACT PARTY(IES) ARE COVERED BY THE POLICY SUBJECT TO ALL TERMS, CONDITIONS, LIMITATIONS, WARRANTIES, EXCLUSIONS AND CANCELLATION PROVISIONS THEREOF.

2. THE POLICY SHALL NOT BE VARIED BY ANY PROVISIONS CONTAINED IN THE CONTRACT(S) WHICH PURPORT TO SERVE AS AN ENDORSEMENT OR AMENDMENT TO THE POLICY.

SCHEDULE IDENTIFYING TERMS USED IN THIS ENDORSEMENT

1. Equipment (Specify details of any aircraft, engines or spares to be covered):

2. Policy Deductible applicable to physical damage to the Equipment [Insert all applicable Policy deductibles]:

3. (a) Contract Party(ies):

AND (b), in addition, in respect of Legal Liability Insurances:

4. Contract(s):

5. Effective Date [being the date that the Equipment attaches to the Policy or a specific date thereafter]:

6. Additional Premium

7. Appointed Broker:

AVN 67B 28.9.94

1. In respect of any claim on Equipment that becomes payable on the basis of a Total Loss, settlement (net of any relevant Policy Deductible) shall be made to, or to the order of the Contract Party(ies). In respect of any other claim, settlement (net of any relevant Policy Deductible) shall be made with such party(ies) as may be necessary to repair the Equipment unless otherwise agreed after consultation between the Insurers and the Insured and, where necessary under the terms of the Contract(s), the Contract Party(ies).

Such payments shall only be made provided they are in compliance with all applicable laws and regulations.

2. Insurers shall be entitled to the benefit of salvage in respect of any property for which a claims settlement has been made.

3. The Contract Party(ies) are included as Additional Insured(s).

4. The provisions of this Endorsement apply to the Contract Party(ies) solely in their capacity as financier(s)/lessor(s) in the identified Contract(s) and not in any other capacity. Knowledge that any Contract Party may have or acquire or actions that it may take or fail to take in that other capacity (pursuant to any other contract or otherwise) shall not be considered as invalidating the cover afforded by this Endorsement.

5. The cover afforded to each Contract Party by the Policy in accordance with this Endorsement shall not be invalidated by any act or omission (including misrepresentation and non-disclosure) of any other person or party which results in a breach of any term, condition or warranty of the Policy PROVIDED THAT the Contract Party so protected has not caused, contributed to or knowingly condoned the said act or omission.

6. The Contract Party(ies) shall have no responsibility for premium and Insurers shall waive any right of set-off or counterclaim against the Contract Party(ies), except in respect of outstanding premium in respect of the Equipment.

7. Upon payment of any loss or claim to or on behalf of any Contract Party(ies), Insurers shall to the extent and in respect of such payment be thereupon subrogated to all legal and equitable rights of the Contract Party(ies) indemnified hereby (but not against any Contract Party). Insurers shall not exercise such rights without the consent of those indemnified, such consent not to be unreasonably withheld. At the expense of Insurers, such Contract Party(ies) shall do all things reasonably necessary to assist the Insurers to exercise said rights.

8. Except in respect of any provision for Cancellation or Automatic Termination specified in the Policy or any endorsement thereof, cover provided by this Endorsement may only be cancelled or materially altered in a manner adverse to the Contract Party(ies) by the giving of Seven (7) days (or such lesser period as may be customarily available) notice in writing to the Appointed Broker. Notice shall be deemed to commence from the date such notice is given by the Insurers. Such notice will NOT however, be given at normal expiration date of the Policy or any endorsement.

EXCEPT AS SPECIFICALLY VARIED OR PROVIDED BY THE TERMS OF THIS ENDORSEMENT:-

1. THE CONTRACT PARTY(IES) ARE COVERED BY THE POLICY SUBJECT TO ALL TERMS, CONDITIONS, LIMITATIONS, WARRANTIES, EXCLUSIONS AND CANCELLATION PROVISIONS THEREOF.

2. THE POLICY SHALL NOT BE VARIED BY ANY PROVISIONS CONTAINED IN THE CONTRACT(S) WHICH PURPORT TO SERVE AS AN ENDORSEMENT OR AMENDMENT TO THE POLICY.

SCHEDULE IDENTIFYING TERMS USED IN THIS ENDORSEMENT

1. Equipment [Specify details of any aircraft, engines or spares to be covered]:

2. Policy Deductible applicable to physical damage to the Equipment

[Insert all applicable Policy deductibles]:

3. Contract Party(ies):

4. Contract(s):

5. Effective Date [being the date that the Equipment attaches to the Policy or a specific date thereafter]:

6. Additional Premium:

7. Appointed Broker:

AVN.67B (Hull War)

28.9.94

(i) the date and time at which the Insurance expires or, if earlier,

(ii) (the date and time at which the Insured has no further obligation to insure the Equipment under the Contract(s), as notified in writing by the Designated Contract Party to the Insurers (via the Appointed Broker, if any) (such notification to be given promptly and in any event within 30 days after such date), and in consideration of the Additional Premium, it is confirmed in respect of the said interest(s) of the Contract Party(ies) that the Insurance afforded by the Policy is in full force and effect, and it is further agreed that the following provisions are specifically endorsed to the Policy:-

1. Under the Hull and Aircraft Spares Insurances

Such payments shall only be made provided they are in compliance with all applicable laws and regulations.

1.2 Insurers shall be entitled to the benefit of salvage in respect of any property for which a claims settlement has been made.

2. Under the Legal Liability Insurance

2.2 The Insurance provided hereunder shall be primary and without right of contribution from any other insurance which may be available to the Contract Party(ies).

2.3 This Endorsement does not provide coverage for any Contract Party with respect to claims arising out of its legal liability as manufacturer of, or performer of maintenance, repairs or other operational activities on, the Equipment.

2.4 The coverage afforded by the Policy is amended by this Endorsement to provide coverage in respect of the liability of the Contract Party(ies) to the pilots and crew of the Equipment (excluding liability to those pilots and crew employed by the Contract Party(ies)), on the basis that for the purposes of providing such coverage under this Endorsement, such pilots and crew shall be deemed to be passengers.

3. Under the Hull and Aircraft Spares Insurances and the Legal Liability Insurances

3.1 The Contract Party(ies) are included as Additional Insured(s).

3.3 Nevertheless, no Contract Party shall be entitled to claim a loss by theft or alleged theft of the Equipment under the hull insurances by reason of the actual or alleged dispossession or refusal or failure to redeliver the Equipment by the Insured or any other Contract Party, but this shall not exclude any claim by a Contract Party by reason of loss of or damage to the Equipment (other than loss by such theft) during the period of this Endorsement.

3.4 The provisions of this Endorsement apply to each Contract Party solely in its capacity as financier, lessor or lease servicer or manager under the Contract(s) and not in any other capacity. Knowledge that any Contract Party may have or acquire or actions that it may take or fail to take in that other capacity (pursuant to any other contract or otherwise) shall not be considered as invalidating the cover afforded by this Endorsement. For this purpose “lease servicer or manager” means a Contract Party who is appointed by one or more other Contract Party(ies) to provide services relating to the Equipment in connection with the Contract(s) (other than services of a kind specified in paragraph 2.3 above).

3.5 The Contract Party(ies) shall have no responsibility for premium, and Insurers shall waive any right of set-off or counterclaim against the Contract Party(ies) except in respect of outstanding premium in respect of the Equipment.

3.6 Upon payment of any loss or claim to or on behalf of any Contract Party(ies), Insurers shall to the extent and in respect of such payment be thereupon subrogated to all legal and equitable rights of the Contract Party(ies) indemnified hereby (but not against any Contract Party). Insurers shall not exercise such rights without the consent of those indemnified, such consent not to be unreasonably withheld. At the expense of Insurers such Contract Party(ies) shall do all things reasonably necessary to assist the Insurers to exercise said rights.

3.7 Except in respect of any provision for Cancellation or Automatic Termination specified in the Policy or any endorsement thereof, cover provided by this Endorsement may only be cancelled or materially altered in a manner adverse to the Contract Party(ies) by the Insurers giving not less than 30 days’ notice in writing to the Contract Party(ies) (via the Appointed Broker, if any). Notice shall be deemed to commence from the date such notice is given by the Insurers. Such notice will NOT, however, be given at normal expiry date of the Policy or any endorsement.

EXCEPT AS SPECIFICALLY VARIED OR PROVIDED BY THE TERMS OF THIS ENDORSEMENT:-

1. THE CONTRACT PARTY(IES) ARE COVERED BY THE POLICY SUBJECT TO ALL TERMS, CONDITIONS, LIMITATIONS, WARRANTIES, EXCLUSIONS AND CANCELLATION PROVISIONS THEREOF.

2. THE POLICY SHALL NOT BE VARIED BY ANY PROVISIONS CONTAINED IN THE CONTRACT(S) WHICH PURPORT TO SERVE AS AN ENDORSEMENT OR AMENDMENT TO THE POLICY.

SCHEDULE IDENTIFYING TERMS USED IN THIS ENDORSEMENT

1. Equipment¹:

2. Policy Deductible applicable to physical damage to the Equipment²:

3. (a) Contract Party(ies):

AND (b), in addition, in respect of Legal Liability Insurances:

4. Contract(s):

and references in this Endorsement to “the Contract(s)” mean the contract(s) listed above, as amended or supplemented from time to time.

5. Designated Contract Party:

6. Effective Date³:

7. Additional Premium:

8. Appointed Broker:

__________________________________________

¹ Specify details of any aircraft, engines or spares to be covered.

² Insert all applicable Policy deductibles.

³ Insert the date when the Contract Party(ies) acquire their interests in the Equipment, or

the policy renewal date, as applicable.

AVN 67C 2 August 2007

In common with all AICG produced AVN Clauses, this Clause is published by AICG, but it is expressly non-binding and AICG makes no recommendation as to its use in particular policies. Insurers are of course free to offer different policy wordings and clauses to their policy holders.

It is noted that the Contract Party(ies) have an interest or interests in respect of the Equipment under the Contract(s). Accordingly, with respect to losses occurring during the period from the Effective Date until (i) the date and time at which the Insurance expires or, if earlier, (ii) the date and time at which the Insured has no further obligation to insure the Equipment under the Contract(s), as notified in writing by the Designated Contract Party to the Insurers (via the Appointed Broker, if any) (such notification to be given promptly and in any event within 30 days after such date), and in consideration of the Additional Premium, it is confirmed that the Insurance afforded by the Policy is in full force and effect, and it is further agreed that the following provisions are specifically endorsed to the Policy:-

2. Such payments shall only be made provided they are in compliance with all applicable laws and regulations.

3. Insurers shall be entitled to the benefit of salvage in respect of any property for which a claims settlement has been made.

4. The Contract Party(ies) are included as Additional Insured(s).

5. The provisions of this Endorsement apply to each Contract Party solely in its capacity as financier, lessor or lease servicer or manager under the Contract(s) and not in any other capacity. Knowledge that any Contract Party may have or acquire or actions that it may take or fail to take in that other capacity (pursuant to any other contract or otherwise) shall not be considered as invalidating the cover afforded by this Endorsement. For this purpose “lease servicer or manager” means a Contract Party who is appointed by one or more other Contract Party(ies) to provide services relating to the Equipment in connection with the Contract(s) (other than services consisting of performance of maintenance, repairs or other operational activities on the Equipment.).

6. The cover afforded to each Contract Party by the Policy in accordance with this Endorsement shall not be invalidated by any act or omission (including misrepresentation and non-disclosure) of any other person or party which results in a breach of any term, condition or warranty of the Policy PROVIDED THAT the Contract Party so protected has not caused, contributed to or knowingly condoned the said act or omission.

7. The Contract Party(ies) shall have no responsibility for premium, and Insurers shall waive any right of set-off or counterclaim against the Contract Party(ies), except in respect of outstanding premium in respect of the Equipment.

8. Upon payment of any loss or claim to or on behalf of any Contract Party(ies), Insurers shall to the extent and in respect of such payment be thereupon subrogated to all legal and equitable rights of the Contract Party(ies) indemnified hereby (but not against any Contract Party). Insurers shall not exercise such rights without the consent of those indemnified, such consent not to be unreasonably withheld. At the expense of Insurers, such Contract Party(ies) shall do all things reasonably necessary to assist the Insurers to exercise said rights.

9. Except in respect of any provision for Cancellation or Automatic Termination specified in the Policy or any endorsement thereof, cover provided by this Endorsement may only be cancelled or materially altered in a manner adverse to the Contract Party(ies) by the Insurers giving not less than 7 days’ notice in writing to the Contract Party(ies) (via the Appointed Broker, if any). Notice shall be deemed to commence from the date such notice is given by the Insurers. Such notice will NOT however be given at normal expiration date of the Policy or any endorsement.

EXCEPT AS SPECIFICALLY VARIED OR PROVIDED BY THE TERMS OF THIS ENDORSEMENT:-

1. THE CONTRACT PARTY(IES) ARE COVERED BY THE POLICY SUBJECT TO ALL TERMS, CONDITIONS, LIMITATIONS, WARRANTIES, EXCLUSIONS AND CANCELLATION PROVISIONS THEREOF.

2. THE POLICY SHALL NOT BE VARIED BY ANY PROVISIONS CONTAINED IN THE CONTRACT(S) WHICH PURPORT TO SERVE AS AN ENDORSEMENT OR AMENDMENT TO THE POLICY.

SCHEDULE IDENTIFYING TERMS USED IN THIS ENDORSEMENT

1. Equipment¹:

2. Policy Deductible applicable to physical damage to the Equipment²:

3. Contract Party(ies):

4. Contract(s):

and references in this Endorsement to “the Contract(s)” mean the contract(s) listed above, as amended or supplemented from time to time.

5. Designated Contract Party:

6. Effective Date³:

7. Additional Premium:

8. Appointed Broker:

_____________________________________

¹ Specify details of any aircraft, engines or spares to be covered.

² Insert all applicable Policy deductibles.

³ Insert the date when the Contract Party(ies) acquire their interests in the Equipment, or the policy

renewal date, as applicable.

AVN 67C (Hull War) 17 October 2007

This Policy does not cover claims arising from bodily injury (fatal or otherwise) or property damage suffered by any member of the flight, cabin or other crew whilst engaged in the operation of the Aircraft.

AVN 68 14.12.90

No. of Helicopters owned and/or operated by Proposer

Damage to Helicopter

Third Party & Passenger Liability

1. Circumstances of Loss

2. Give use at time of Accident by reference to list at the end of this Form

No. of Helicopters owned and/or operated by Proposer

No. of Accidents

Cost or Estimate

No. of Accidents

Cost or Estimate

Headings and marginal captions are inserted for the purpose of convenient reference only and are not to be deemed part of this insurance.

In consideration of the payment of the premium as stated herein, and in reliance upon the statements made in the Application Form attaching to and forming part hereof, we the Insurers, each for his own part and not one for another, our heirs, executors and administrators agree with the Insured as follows:—

PART I—AIRCRAFT PHYSICAL LOSS OR DAMAGE

Coverage

Insurers will pay for accidental physical loss of or damage to the Aircraft occurring during the Policy period and arising from the risks covered as detailed in the Declarations attached, subject to the following, as well as to all the terms, conditions and exclusions contained in this Policy:—

Engines

Dismantling, Repairs

Payments

Costs

Deductibles

а) Any claim in respect of an engine is restricted to loss or damage caused by theft, lightning, flood, outbreak of fire external to the engine or by sudden and unexpected impact with a foreign object requiring immediate withdrawal of the engine from service.

As used herein "engine" means an engine for propulsion or auxiliary power complete with all parts necessary for test cell running.

в) No dismantling or repairs shall be commenced without the consent of the Insurers except whatever is necessary in the interests of safety, or to prevent further damage, or to comply with orders issued by the appropriate authority.

с) Insurers have the option to pay whichever is the least of the following:—

(i) cost of repairs and costs detailed in (d) below;

(ii) the market value of the Aircraft;

(iii) The amount insured less the applicable deductible as stated in the Declarations attached, which is the maximum payable under Part I in respect of any one Occurrence.

d) If Insurers elect to pay the cost of repairs, then they will also pay:—

- the cost of transport, by the most economical means, necessary to effect repairs and to return the Aircraft to the Insured's home airport after repairs;

- the cost of replacing damaged parts which cannot be economically repaired;

- the cost of labor;

from the total of which shall be deducted:—

1. the deductible stated in Part I of the Declarations attached; where this is expressed as a percentage, this shall be a percentage of the amount insured;

2. extra costs and overheads due to overtime working, if any;

Total Loss

Theft

Missing Aircraft

Wear and Tear

3. any profit element whatsoever or overheads in excess of 150% of the actual labor cost if the work is carried out by the Insured or the Insured's employees;

4. such proportion of the Overhaul Cost (hereinafter defined) as the used time bears to the Overhaul Life (hereinafter defined) if the repair or replacement has the effect of reinstating it

(e) If Insurers pay the market value or the amount insured, less the applicable deductible, the Aircraft will no longer be insured hereunder. The Aircraft shall not become the property of Insurers unless they elect to take the Aircraft as salvage, together with all documents of title, registration and record.

(f) If the Aircraft is stolen during the Policy period, and found undamaged before Insurers have paid as in (e) above, then Insurers will pay the cost of returning it to the Insured's home airport by the most economical means.

(g) The Aircraft shall be considered as lost if it is not reported or not located within 60 days of the last recorded takeoff within the Policy period.

(h) The Aircraft damage coverage does not apply to loss or damage due solely to wear, tear, deterioration, freezing, mechanical or electrical failure, or any combination of the foregoing causes, unless such loss or damage is the direct result of other physical damage covered by this Policy. Nevertheless, further loss or damage consequent upon the proximate cause of wear, tear, deterioration, freezing, mechanical or electrical failure shall be covered within the terms of this Policy.

PART II—LIABILITY

Coverage

On behalf of the Insured, Insurers will, at their option, settle by judgement or by compromise at a figure not exceeding the limit of liability stated in the Declarations, or defend claims or suits against the Insured

demanding compensation for:

Bodily injury or property damage caused by an Occurrence first suffered during the period of the Policy and arising out of the ownership or use of the Aircraft and arising from the risks covered as detailed in the Declarations attached.

provided that

(a) Insurers shall not be liable to settle or defend any demand

Employees

i for compensation for injury (fatal or otherwise) or loss suffered by any employee of the Insured or of any additional Insured;

Contractual Property in Care, Custody Punitive Damages		ii for damages under any contract or agreement unless such contract or agreement (other than an airport contract) has been accepted by Insurers and endorsed hereon; or unless such liability would have attached in the absence of such contract or agreement; iii for compensation for loss of or damage to property owned, rented, occupied or in the care, custody or control of the Insured or carried by the Aircraft, but this exclusion shall not apply to passenger baggage and personal effects if these are shown as covered in the Declarations; iv for punitive or exemplary damages;
		(b) there has been no breach of the conditions of this Policy and no exclusions apply. In the event of dispute as to the application of the conditions or exclusions, Insurers will provide a defence, if requested, until the dispute is settled but such defence shall not constitute a waiver of the terms of this Policy.
NOTE: In addition to the limits of liability stated in the Declarations Insurers will pay:—
	1. all premiums on bonds to release attachments for an amount not in excess of the applicable limit of liability of this Policy, all premiums on appeal bonds; required in any suit defended by Insurers, but without any obligation to apply for or furnish any such bonds;
	2. all costs taxed against the Insured in any such suit or proceedings and all interest accruing after entry of judgement until the Insurers have paid, tendered or deposited in court, such part of such judgement as does not exceed the applicable limit of Insurers' liability as stated herein; provided that in the event of the amount of such judgement exceeding the applicable limit of Insurers' liability, the Insurers shall only be liable to pay for that proportion of the said costs and interest which the applicable limit of Insurers' liability bears to the amount of such judgement;
	3. expenses incurred by the Insured for emergency medical treatment immediately following bodily injury signified as covered in the Declarations;
	4. expenses incurred by Insurers in settling or defending any claim or suit and all reasonable expenses, other than loss of earnings, incurred by the Insured at Insurers' request.

PART III—MEDICAL PAYMENTS

Coverage

Subject to the limits of liability, terms, conditions and exclusions contained in this Policy, Insurers will pay all reasonable expenses incurred within one year from the date of an Occurrence for necessary medical, surgical, ambulance, hospital, professional nursing and funeral services, to or for each Passenger who sustains bodily injury caused by an Occurrence when the Aircraft is being used by the Named Insured or with his permission.

DEFINITIONS

"Insured" means the Named Insured identified in the Declarations and also a pilot who meets the requirements of this Policy and is authorized by the Named Insured.

"Aircraft" The word "Aircraft" wherever used in this Policy, means the Aircraft described in the Declarations attached, and in addition to the airframe shall include power plants, propellers, rotors and equipment forming part of the Aircraft at the inception of coverage hereunder, including parts detached and not replaced by other similar parts.

"Airport means a written agreement required by any governmental or municipal Contract statute, rule or regulation as a condition to the use of an airport or airport facility.

"in Motion" An Aircraft is in Motion whenever it is Taxying or is in Flight.

"Taxying" means while the Aircraft is moving under its own power or momentum generated thereby other than in Flight as defined, but in the case of water alighting Aircraft, Taxying shall be deemed to mean while the Aircraft is afloat and is not in Flight or Moored.

"In Flight" The Aircraft shall be deemed to be In Flight from the time the Aircraft moves forward in taking off or in attempting to take off for air transit, while in the air and until the Aircraft comes to rest after landing or, the landing run having been safely completed, power is applied for Taxying. A rotorcraft shall be deemed to be In Flight when the rotors are in motion.

"Moored" means while the Aircraft is afloat and made fast to its moorings, or is being launched or hauled up.

"Overhaul costs" means the costs of labor and materials which are or would be incurred in overhaul or replacement (whichever is necessary) at the end of the Overhaul Life.

"Overhaul life" means the amount of use, or operational and/or calendar time which, according to the Airworthiness Authority, determines when overhaul or replacement is required.

"Occurrence" means an accident or a continuous or repeated exposure to conditions occurring during the Policy period, which result in injury, loss or damage during the Policy period, provided the injury, loss or damage is accidentally caused.

"Occupant" means a Passenger or a member of the Crew.

"Passenger" means any person while in, on or boarding the Aircraft for the purpose of riding or flying therein or alighting from the Aircraft following flight or attempted flight therein.

"Crew" means any person whose function is to operate or to assist in the operation of the Aircraft, such as the pilot in command, co-pilot, flight engineer or flight attendant.

Uses of Aircraft

"Private Pleasure" means use for private and pleasure purposes but NOT use for any business or profession nor for hire or reward.

"Business" means the uses stated in "Private Pleasure" and use for the purpose of the Insured's business or profession but NOT use for hire or reward.

"Commercial" means the uses stated in "Private Pleasure" and "Business" and use for the carriage by the Insured of Passengers, baggage accompanying passengers and cargo for hire or reward.

"Rental" means rental, lease, charter or hire by the Insured to any person, company or organisation for "Private Pleasure" and "Business" uses only, where the operation of the Aircraft is not under the control of the Insured. Rental for any other purpose is NOT insured under this Policy unless specifically declared to Insurers under Special Rental Uses in the Declarations.

The definitions of "Private Pleasure", "Business", "Commercial" and "Rental" constitute Standard Uses and do not include abnormal uses such as instruction, aerobatics, hunting, fish-spotting, patrol, parachuting, fire-fighting, carriage of external loads, the intentional dropping, spraying or release of anything, any form of experimental or competitive flying, and any other use involving abnormal hazard, but when cover is provided details of such use(s) are stated in the Declarations under Special Uses.

EXCLUSIONS

THIS POLICY DOES NOT APPLY

Airworthiness

Illegal Use

Geographical limits

Transportation

Pilots

(i) while the Aircraft is in Flight unless it has a standard airworthiness certificate in full force and effect;

(ii) whilst the Aircraft is being used for any illegal purpose or for any purpose other than those stated in the Declarations and as defined in the Definitions;

(iii) whilst the Aircraft is outside territorial limits stated in the Declarations unless the Aircraft is forced outside those limits due to circumstances beyond the control of the pilot;

(iv) whilst the Aircraft is being transported by any means of conveyance except as the result of an accident giving rise to a claim;

(v) when the pilot in command does not comply with the pilot specification in the Declarations or has not passed the necessary proficiency test within the statutory period or is not in possession of a current and valid medical certificate or is not certificated for the make and model being flown and currently rated for the flight conditions involved;

Number of Passengers

Air Regulations

Engine starting

Other insurance

Wrongful conversion

(vi) if the Aircraft load or the number of Passengers exceeds the approved operating limitations contained in the relevant flight manual/handbook or other documents associated with the airworthiness certificate; nor shall coverage apply when the Aircraft is carrying more Passengers than the number of seats stated in the Declarations;

(vii) while with the knowledge and consent of the Named Insured or of any executive officer or partner of the corporation or partnership the Aircraft is being operated in violation of Civil Air Regulations

(viii) to the starting of an engine of the Aircraft without a licensed pilot or licensed aircraft mechanic seated at the controls;

(ix) to claims which are payable whether or not payment has been made under any other policy or policies except in respect of any excess beyond the amount which would have been payable under such other policy or policies had this insurance not been effected;

(x) to loss or damage due to wrongful conversion, embezzlement or secretion of the Aircraft by any person in possession thereof under a license, lease, mortgage, conditional sale or other agreement, or under an agreement with the Insured, whether written, oral or implied;

Transfer of Interest

(xi) following a transfer of the interest of the Insured in the Aircraft without the written consent of the Insurers; or whilst the Aircraft is subject to any lien, mortgage or other encumbrances not specifically declared and described in this Policy;

Aircraft Alteration

(xii) while the Aircraft is changed or converted into a type other than that stated in the Declarations;

Radioactivity

War, Hijacking
and Other Perils

(xiii) to loss, damage or liability directly or indirectly caused by or contributed to by or arising from ionizng radiations or contamination by radioactivity;

(xiv) to claims caused by

(b) Any hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.

(d) Any act of one or more persons, whether or not agents of a sovereign Power, for political or terrorist purposes and whether the loss or damage resulting therefrom is accidental or intentional.

		(e) Any malicious act or act of sabotage (f) Confiscation, nationalization, seizure, restraint, detention, appropriation, requisition for title or use by or under the order of any Government (whether civil military or de facto) or public or local authority. (g) Hijacking or any unlawful seizure or wrongful exercise of control of the Aircraft or Crew in Flight (including any attempt at such seizure or control) made by any person or persons on board the Aircraft acting without the consent of the Insured;
	Furthermore this Policy does not cover claims arising whilst the Aircraft is outside the control of the Insured by reason of any of the above perils. The Aircraft shall be deemed to have been restored to the control of the Insured on the safe return of the Aircraft to the Insured at an airfield not excluded by the geographical limits of this Policy, and entirely suitable for the operation of the Aircraft (such safe return shall require that the Aircraft be parked with engines shut down and under no duress);
Noise, Pollution and Other Perils		(xv) (1) to claims directly or indirectly occasioned by, happening through or in consequence of:- (a) noise (whether audible to the human ear or not), vibration, sonic boom and any phenomena associated therewith, (b) pollution and contamination of any kind whatsoever, (c) electrical and electromagnetic interference, (d) interference with the use of property; unless caused by or resulting in a crash fire explosion or collision or a recorded in-flight emergency causing abnormal Aircraft operation. (2) With respect to any provision in the Policy concerning any duty of Insurers to investigate or defend claims, such provision shall not apply and Insurers shall not be required to defend (a) claims excluded by Paragraph (1) or (b) a claim or claims covered by the Policy when combined with any claims excluded by Paragraph (1) (referred to below as "Combined Claims"). (3) In respect of any Combined Claims, Insurers shall (subject to proof of loss and the limits of the Policy) reimburse the Insured for that portion of the following items which may be allocated to the claims covered by the Policy:
		(i) damages awarded against the Insured and (ii) (defense fees and expenses incurred by the Insured. (4) Nothing herein shall override any radioactive contamination or other exclusion clause attached to or forming part of this Policy.

INSURED'S DUTIES WHEN LOSS OCCURS

(1) Notice of Claim

In the event of any Occurrence likely to result in a claim hereunder, immediate written notice must be given by or on behalf of the Insured to the Insurers, or person named under "Notice of Claim" in the Declarations, (hereinafter called the "Agent"). Such notice shall include all immediately available information regarding the circumstances of the Occurrence.

(2) Co-operation and Assistance

The Insured must co-operates with and assist the Insurers in fulfilling their obligations under this Policy and shall not take any kind of independent action without the prior approval of the Insurers subject to the following:-

Claim under Part 1—Aircraft Physical Loss or Damage

a) The Insured shall take all reasonable measures to protect the Aircraft, whether or not the loss is covered by this Policy, and any further loss due to the Insured's failure to do so shall not be recoverable under this Policy; reasonable expenses incurred in affording such protection, provided the loss is covered by this Policy, shall be deemed incurred at the Insurers' request.

b) In the event of theft or criminal damage to the Aircraft the Insured shall report details to the police immediately. Insurers shall not be responsible for the payment of any reward offered unless previously agreed by them.

c) The Insured shall file proof of loss within ninety (90) days of the Occurrence being a sworn statement of all monetary interests in and insurances of the Aircraft, the place, time and cause of the Occurrence giving rise to the loss or damage, the amount of the loss or damage, together wit hi documentary proof thereof. All documents relating to the Aircraft and pilot must be forwarded to the Insurers or their nominated Agent.

d) No action shall lie against the Insurers until sixty (60) days after proof of loss shall have been filed and the amount of loss shall have been determined as provided in this Policy nor unless such action shall have been commenced within twelve months next after the happening of the loss.

Claim under Part II—Liability

a) The Insured shall make no admission of liability and any demand, notice, summons or other process received by the Insured, or his representatives, shall be forwarded immediately to the Agent.

b) The Insured may, provided no admission of liability is made, incur such medical and surgical expenses as may be immediately necessary at the time of the Occurrence and the Insurers will pay such expenses in addition to any claim admitted hereunder.

c) No action shall lie against the Insurers until the amount of the Insured's obligation to pay shall have been finally determined either by judgement against the Insured after actual trial or by written agreement of the Insured, the Claimant and the Insurers. Any person or organisation or the legal representative thereof who has secured such judgement or written agreement shall thereafter be entitled to recover under this Policy to the extent of the insurance afforded by this Policy. Nothing contained in this Policy shall give any person or organisation any right to join the Insurers as a co-defendant in any action against the Insured to determine the Insured's liability. Bankruptcy or insolvency of the Insured or the Insured's estate shall not relieve the Insurers of any of their obligations hereunder.

Claims under Part III—Medical Payments

Prior to the payment of any claim hereunder, the injured person must give such authority as may be required to enable the Insurers to obtain access to all applicable medical records and shall submit to such medical examinations as often as may be reasonably required by the Insurers, who will pay the cost of any such medical examinations in addition to any claim admitted hereunder. Such payment shall not constitute admission of liability of the Insured or of the Insurers under any other coverage hereunder.

CONDITIONS

A) The due observance and fulfilment of the terms conditions and endorsements of this Policy shall be a condition precedent to any liability of the Insurers to make any payment under this Policy.

B) Reinstatement
In the event of loss under Part 1 whether or not covered by this Policy the amount of insurance in respect to any Aircraft shall be reduced as of the time and date of loss by the amount of such loss and such reduced value shall continue until repairs are commenced. The insurance shall then be increased by the value of the completed repairs until the amount of insurance is fully reinstated or the Policy has expired.

C) Two or more Aircraft
When two or more Aircraft are insured hereunder, the terms of this Policy shall apply separately to each.

D) Subrogation
In the event of any payment under this Policy, the Insurers shall take over all the Insureds' rights of recovery therefor against any person or organisation and the Insured shall do whatever is necessary to secure such rights.

E) Changes
No change in this Policy shall be effective unless an endorsement signed by the Insurers has been issued. Notice to any agent or knowledge possessed by any agent shall not effect a change in any part of this Policy or prevent the Insurers from asserting their rights under this Policy.

F) Assignment
This Policy shall not be assigned in whole or in part except with the consent of the Insurers verified by endorsement hereon. If the Insured shall die, this Policy shall cover the Insured's legal representatives as the Insured.

G) Financial Responsibility Laws

Such insurance as is afforded by this Policy shall comply with the provisions of any Financial Responsibility Law, or other Law applicable to Aircraft with respect to financial responsibility or liability arising out of the ownership, maintenance or use of Aircraft during the Policy period. However, the foregoing shall not apply to any type of coverage not afforded by this Policy nor shall it apply to any amount or amounts in excess of the limit or limits of liability provided in the Policy. The Insured agrees to reimburse the Insurers for any payment made by the Insurers which the Insurers would not have been obligated to make under the terms of this Policy but for the agreement contained in this condition.

H) No Benefit To Bailee

The Insurance afforded by this Policy shall not inure directly or indirectly to the benefit of any bailee.

I) State Laws

Terms of this Policy which are in conflict with the statutes of the state wherein this Policy has application are hereby amended to conform to such statutes.

J) Limitation of Liability Clause (Joint Insureds)

K) Appraisal
If the Insured and Insurers fail to agree as to the amount of loss under Part I, each shall, on the written demand of either, made within sixty (60) days after receipt of proof of loss by the Insurers, select a competent and disinterested appraiser, and the appraisal shall be made at a reasonable time and place. The appraisers shall first select a competent and disinterested umpire, and failing for fifteen (15) days to agree upon such umpire, then on request of the Insured or the Insurers, such umpire shall be selected by a judge of a court of record in the county and state in which such appraisal is pending. The appraisers ;3hall then appraise the loss, stating separately the actual cash value at the time of the loss and the amount of loss in respect of each item, and failing to agree, shall submit their differences to the umpire. An award in writing of any two shall determine the amount of loss. The Insured and the Insurers shall each pay his or their chosen appraiser and shall bear equally the other expenses of the appraisal and umpire.

The Insurers shall not be held to have waived any of their rights by any act relating to appraisal.

L) Cancellation

This Policy may be cancelled by the Named Insured by mailing to the Agent named herein written notice stating when thereafter such cancellation shall be effective. This Policy may be cancelled by the Insurers by mailing to the Named Insured at the address shown in this Policy written notice stating when not less than thirty (30) days thereafter such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice and the effective date and hour of cancellation stated in the notice shall become the end of the Policy period. Delivery of such written notice either by the Named Insured or by the Insurers shall be equivalent to mailing.

If the Named Insured cancels, earned premium shall be computed in accordance with the short rate table below. If the Insurers cancel, earned premiums shall be computed pro rata. The Insurers' check or the check of their representative mailed or delivered as aforesaid shall be sufficient tender of any refund of premium due to the Named Insured.

In respect of Aircraft Physical Damage, the premium shall be deemed fully earned in respect of any Aircraft on which a loss under this Policy, adjustable on the basis of the full amount insured less any applicable deductible, has occurred.

SHORT RATE CANCELLATION TABLE

Days	Per cent. of	Days	Per cent. of
Policy	One Year	Policy	One Year
in Force	Premium	in Force	Premium