1989-1312779L
NO $9./3/
AN ORDINANCE ACCEPTING THE PROPOSAL OF ARKWRIGHT MUTUAL INSURANCE
COMPANY FOR BOILER AND MACHINERY INSURANCE COVERAGE, AUTHORIZING
THE EXPENDITURE OF FUNDS THEREFOR, AND DECLARING AN EFFECTIVE
DATE
THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I That the proposal of Arkwright Mutual Insurance
Company-for moiler and Machinery insurance coverage, a copy of
which is attached hereto and incorporated by reference herein, is
hereby accepted
SECTION II That the City Council hereby authorizes the
expen ture o unds in the manner and amount as specified in the
agreement
SECTION III That this ordinance shall become effective
imme ate y upon its passage and approval
PASSED AND APPROVED this the 12.~ day of , 1989
Ray St ns, ayor
ATTEST
enn ~ ter a, Cy 5zcrerarry
APPROVED AS TO LEGAL FORM
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
BY ILM ~ -
,i 1, ii It k I k I
I ( ill u l i ti tl l ~IW
lil ~N II it
Milli I v 71 40
10)J
IAA 1! 3103 4
September 7 1989
City of Denton
Purchasing Department
901 B texas Street
Denton Texas 76201
SUBJECT BOILER & MACHINERY INSURANCE
BID NUMBER RFP 1006
Enclosed is Arkwright Insurance Company's Renewal Proposal for Boiler &
Machinery coverages
The objective of our proposed Boiler & Machinery program is to continue to
provide a broad and comprehensive policy that will produce stability of
coverage and price over the long term while providing state of the art" loss
prevention and property conservation services
The proposed coverages high limits and service capabilities ire tailored
specifically for the City of Denton
This proposal meets or exceeds specifications See attached forms and
proposal details
We are prepared to renew these coverages effective October 1 1989
If any questions arise from this proposal I will be available for assistance
Cordially
Alan H Armbruster
Senior Account Representative
AHA/ j r
1468t
B O I L E R & M A C H I N E R Y
I N S U R A N C E P R O P O S A L
for
CITY OF DENTON TEXAS
Prepared by
Alan H ALmbruster Sr AccounL RepLesentatLve
ARKWRIGHT INSURANCL COMPANY
September 7 1989
CONTENTS
I LOSS PREVENTION ENGINLERING
II CLAIMS SERVICES
III COVERALLS
IV SPLCIAL CONDITIONS
V POLICY TERM
VI LOCATIONS
VII LIMITS OF LIABILITY
VIII DEDUCTIBLES
IX PREMIUM
X COST/BENEIIIS
XI SUMMARY OI BENEFITS
XII CURRENT INSUREDS
I LOSS PRFVENTION £NGINIERING
The City of Denton's substantial commitment to loss prevention is evidenced by
the condition of its facilities and excellent loss experience over prior years
the full resources of the Factory Mutual Engineering Division will continue to
supplement the activities of your personnel in achieving the identification
and control of all mayor exposures to loss
Boiler and Machinery State Jurisdictional Inspections Life Studies 2nd
Transfoimer Oil Testing are only a few of the many specialized engineering
services available to the City of Dcnton qs an Arkwright Insured
Arkwright provides additional backup to the Factory Mutual Engineering
Division effort through the resources of our own loss prevention engineers
Our purpose is to assure the quality of the basic field inspection effort and
to assist in unique loss prevention engineering problems which may arise
Our Regional Engineering Staff includes John Williams Assistant Vice
President and Manager of Engineering for Arkwright and James E Haskett
Senioi Boiler & Machinery Engineer Both individuals would be involved in our
efforts with the City of Denton Both Mr Williams and Mr Haskett each have
in excess of thirty years Boiler & Machinery experience Mr Haskett will
continue to serve as primary coordinator of all Factory Mutual field
inspections in addition to his periodic visits to selected plants requiring
special attention Our local Factory Mutual Engineers enjoy considerable
expertise and experience
II CLAIMS SFRVlCFS
Losses are adjusted through Factory Mutual Adjustment located in Dallas
Texas Factory Mutual Adjustment will work directly with the City of Denton
so that claims can be e_pedited and delays minimized Factory Mutual
Adjustment will contact the insured for immediate action based on the loss
Depending on the nature of claims Adjustment representatives can be at the
site of the loss within hours
Mr Tom Freeman Vice President and Regional Claims Manager for Arkwright is
responsible for developing a positive working relationship with our
policyholders and working closely with Factory Mutual Adjustment He will
monitor all loss adjustment activities and participate where necessary to
provide supplemental service that will assure fair and equitable settlements
on a timely basis
Representatives of the City of Denton will be kept informed through
correspondence and reports so that the status of claims can be known at all
times
CIrY OF DENTON
III
COVERAGES Extended Comprehensive Boiler & Machinery
coverage for Physical Damage as per
current policy to include
Any boiler any fired vessel any metal
unfired vessel subject to vacuum or
internal pressure other thin static
pressure of contents any refrigerating
and
air conditioning vessels and piping or
any
piping and its accessory equipment and
including any boilei of pressure vessel
mounted on mobile equipment
An) mechanical or electrical machine or
electrical apparatus used for the
generation transmission or utilization
of
mechanical or electrical power
Any transformer or electrical apparatus
whether or not located on the premises of
the insured owned by a public utility
company and which is used to supply
electrical power solely to the premises
of
the insured
computing Machines and Electronic Data
Processing equipment or electronic
computer control equipment
Miscellaneous electrical apparatus
consisting of iadro broadcasting
equipment
IV
SPECIAL CONDITIONS 1 Repair or Replacement on Same or
Another Site with New Kind etc
2 Connected and Ready for Use
exclusion waived
3 Lightning Loss No exclusion
4 'Care Custody or Control of Inured'
provision has been deleted and loss of
use of such property has been
reinstated
IV SPECIAL CONDITIONS
(Continued)
V POLICY TERM
VI LOCATIONS
VII LIMITS OF LIABILITY
5
Electronic computer
control or data
processing equipment
used for production
purposes is included
6
Sixty (60) day Notice
of Cancellation
7
Premium and/or rates
may be adjusted
annually
8
90 day Automatic
Coverage for newly
acquired properties
9
A M Best Rating A+
(Superior)
10
Stock Company forms are fully admitted and
approved by the State
of Texas
October 1 1989 to October 1 1992
As per specifications
$10 000 000 Combined any one accident
$ 50 000 Expediting Expense
VIII DEDUCPIBLES
$5 000 or $ 80 per KVA of the stated capacity whichever is
greater for all power and distribution transformers
For the equipment in the Power Plant only
DESCRIPTION Or OBJECT
Water Tube Boilers having a heating
surface of 15,000 square feet of more
Steam Turbine 12 650 kw
Steam Turbine 12 650 kw
Steam Turbine 22 000 kw
Steam Turbine 65 483 kw
Steam Turbine 61 162 kw
DLDUCTIBLE, AMOUNT
$ 50 000
25 300
25 300
44 000
130 966
122,324
Transformers having a capacity of
25 000 kva or more but less than 50 000 kva 28,000
Transformers having a capacity of
50 000 kva or more 55 000
Any other Object at this location 25 000
$5 000 for all other Objects at all locations
IX PREMIUM $46 912 Annually
X COST/BENEFIT ANAIYSIS
BENEFITS
COSIS
Property Loss Prevention Engineering Services Greatly $ 25 000 +
Reduce Liability Exposures (see Note)
Prudent Location Deductible
(only one deductible applies in event of joint Fiie/DIC 5 000 +
loss fewer dollars of loss assumed)
Stability Of Price And
Market Due
To Reinsurance Cycles
5 000
F
5 000
+
Property Appraisals Available
Fixed' Annual Premium
(no loss
retro)
1
+
Known Underwriters/Adju
sters (dir
ect/open contact)
1
+
Market Stability After
Large Loss
es (proven)
1
+
Flexibility Of Program
Design (i
e coverages/additional locs )
1
+
High Loss Limits (i e
stability
of price)
1
+
BENEFIIS/SERVICES INCLUDED TOTALS ($40 000
NOTE
55+ locations inspected at an average of 8 hours pei location for visits
and report writing (55+ locs x 8 hours = 440+ manhours x $65/hr - $28 600+)
Proposed Annual Premium/$5 000 Deductible
EFFECTIVE ""RISK TRANSFER/INSURANCE' COST
$46,912
$ 6 912
XI SUMMARY OF BENEFITS
1 Arkwright Insurance Company is a major underwritet of Governmental
Manufacturing, Commercial and Institutional organizations The
property insurance programs we design for our Insureds are unique in
each case
2 the deductible for the various All Risk property coverages applies
concurrently Only one deductible would apply to any one loss
3 Arkwright's Proven stability. regardless of vast swings in the
reinsurance marketplace
4 S erior En ineerin Pro ert Conservation services An engineer of
our organization iegulary visits with you to assist in property
conservation needs Free engineering reviews of plans materials and
completed work is provided for any new or proposed projects
5 Repair or replacement coverage is provided for property coverages
without coinsurance
6 Stable Pricing and deductibles both now and in the future
7 Service is provided on several levels with planned visits by
management the account underwriter and the account engineeis
8 High limits of capacity to provide high Boiler & Machinery limits
9 Local Underwriters emphasize direct open contact
10 Damage to property of others is included while in your care
custody and control' with values appropriately reported
11 Written notice is not required in the event of loss
12 Coverage Fnhancements can be added 2t any time
XII CURRFNT ARKWRIGHT POLICYHOLDERS
CITY OF DENTON
CITY OF DALLAS
GIIY OF CARROLLTON
CITY OF AUSTIN
CITY OF El PASO
CITY OF ODESSA
CENTRAL LOUISIANNA hLECTRIC COMPANY
PUBLIC SERVICE OF SAN ANTONIO
LOWER COLORADO RIVER AUTHORITY
BRAZOS ELECTRIC POWER COOP
TEXAS INSTRUMENTS INC
FRITO LAY INC
SUE DATE I ARKWRIGHT INSURANCE COMPANY
March 23, 1989
Clause No
1 INSURED CITY OF DENTON, TEXAS
Sheet A No 1
Replacing Sheet No
Policy No 390659
Effective Date January 1, 1989
2 COVERAGES
The coverages provided by this Policy are defined by the lForms and ocations desc abed meths
attached to and forming a part of this Policy and apply only
Schedule(s) attached to and forming a part of this Policy
3 PREMIUM PAYABLE
Any return of premium accruing under this Policy, unless otherwise stated, shall be
applied to the account of CITY OF DENTON, TEXAS
4 LOSS PAYABLE
Loss, if any, on all property, unless otherwise stated, shall be payable to
CITY OF DENTON, TEXAS
5 BOILER AND MACHINERY COVERAGE
The following Object Group Descriptions apply under the terms of Section III of the Forms
and Endorsements, and to locations covered for Boiler and Machinery Insurance as shown
in the Schedules, attached to and forming a part of this Policy
Group Code Group Description
COMP-1 BOILERS AND METAL FIRED OR UNFIRED PRESSURE OR
VACUUM VESSELS, ASME STAMPED FIBERGLASS REINFORCED
PLASTIC UNFIRED PRESSURE VESSELS, METAL PRESSURE
PIPING, ALL NORMALLY SUBJECT TO VACUUM OR INTERNAL
PRESSURE OTHER THAN STATIC PRESSURE OF CONTENTS,
REFRIGERATING OR AIR'CONDITIONING SYSTEMS INCLUDING
ADDITIONAL VESSELS AND PIPING, EXCLUDING (1) WASTE
DISPOSAL PIPING, (2) ANY PIPING FORMING PART OF A FIRE
PROTECTIVE BOILER FEED SYSTEM, ( PIPING BETWEEN PIPING T E OTHER FEED PUMP OR
INJECTOR AND THE BOILER, (b) BOILER CONDENSATE RETURN
PIPING, (c) WATER PIPING FORMING PART OF A REFRIGERATING
OR AIR CONDITIONING SYSTEM USED FOR COOLING,
HUMIDIFYING OR SPACE HEATING PURPOSES (SEE FORM 4501T)
Letts R 1011 of 11 s In tllGiss S"n
SUE DATE l ARKWRIGHT INSURANCE COMPANY
March 23, 1989
Sheet A No
Replacing Sheet No
Policy No 390659
Effective Date January 1, 1989
Clause No
BOILER AND MACHINERY COVERAGE (Continued)
Group Code Group Description
COMP-2 MECHANICAL OR ELECTRICAL MACHINES OR ELECTRICAL
APPARATUS WHICH GENERATE, TRANSMIT, CONTROL,
CONVERT OR RECEIVE MECHANICAL, ELECTRICAL,
HYDRAULIC OR PNEUMATIC ENERGY OR POWER, AND
MACHINES WHICH IMPEL GASES OR FLUIDS, EXCLUDING (1)
VEHICLES, (2) ELEVATORS, HOISTS, CRANES, POWER SHOVELS,
DRAGLINES, EXCAVATORS OR CONVEYORS TOGETHER WITH
ANY MECHANICAL, ELECTRICAL OR HYDRAULIC APPARATUS
MOUNTED ON THEIR FRAME OR COMMON BASE, OR FORMING
AN INTEGRAL PART THEREOF, BUT NOT EXCLUDING ANY
SEPARATELY MOUNTED AND CONNECTED DRIVING MOTOR,
PUMP OR GEAR SET, (3) ALL BELTS, ROPES, NON-ELECTRICAL
CABLES, AND CHAINS OF EVERY DESCRIPTION, CONSTRUCTION
AND USE, (4) ELECTRONIC W COMPUTERS, ELECTRONIC O DATA DRAFT PROCESSING
EQUIPMENT, OR ELECTRONIC COMPUTER CONTROL
EQUIPMENT, (6) ANY EQUIPMENT USED FOR TESTING,
EXPERIMENTAL, RESEARCH, DIAGNOSTIC, THERAPEUTIC,
SURGICAL, DENTAL OR PATHOLOGICAL PURPOSES, (7) X-RAY
MACHINES,
USING RADIOACTIVE GMATERIA SG 8) RADIO OTHER OR TELEVISION
APPARATUS, (9) PRECIPITATORS AND COAL PULVERIZERS, (10)
MAINTENANCE AND PRODUCTION MACHINES WHICH PROCESS,
FORM, SHAPE OR TRANSPORT RAW MATERIALS, MATERIALS IN
PROCESS, WASTE MATERIALS OF THE PRODUCTION PROCESS
OR FINISHED PRODUCTS TOGETHER WITH ANY MECHANICAL,
ELECTRICAL OR HYDRAULIC APPARATUS MOUNTED ON THEIR
FRAME OR COMMON BASE, OR FORMING AN INTEGRAL PART
THEREOF, BUT NOT EXCLUDING, (a) ANY PRESSURE VESSEL
WOULD WHICH OTHERWISE E INSURED
DRIVING MOTOR, PUMP OR GEAR SET ( AND H (c) PUMPS,
COMPRESSORS, FANS OR BLOWERS WHICH ARE NOT AN
INTEGRAL PART OF SUCH MACHINES (SEE FORMS 4502T and
4503T)
Leun R jolt of line Intlloges revisjon
E DATE I ARKWRIGHT INSURANCE COMPANY
arch 23, 1989
{ Sheet A No
H
Replacing Sheet No
Policy No
Effective Date
Clause No
5
390659
January 1, 1989
7 FORMS AND ENDORSEMENTS
The following Forms and Endorsements are attached to and form a part of this Policy
Policy
Description Endorsement No
Form
Edition
4000T III
(7/87)
4000T DEC
(7/87)
4501T
(7/87)
4502T (7/87)
4503T (7/67)
Insuring Agreement
Declarations
Object Definitions No 1 -
Pressure & Refrigeration Objects
Object Definitions No 4-
Turbine Objects
Object Definitions
No 2 - Mechanical Objects and
No 3 - Electrical Objects
1
2
3
Authorized Underwriter
Lett R left of I e Intl We. rev lion
PN 390859
ARKWW~GH SECTION III
fi F (Applicable to Boiler and Machinery Coverages Only
As Defined in this Section of the Policy)
INSURING AGREEMENT
The Insuring Agreement, Conditions, Definitions and Special Provisions and other terms of this
Section shall apply only as specified None of the provisions, stipulations and other terms of the
other Sections of this Policy shall apply
Various provisions in this policy restrict coverage Read the entire policy carefully to
determine rights, duties and what is and is not covered
Throughout this policy the words "you" and "your" refer to the Named Insured shown in the
Declarations The words "we," "us" and "our" refer to the Company providing this insurance
Other words and phrases that appear in quotation marks have special meaning Refer to
section F - DEFINITIONS
A COVERAGE
We will pay for direct damage to Covered Property caused by a Covered Cause of Loss
1 Covered Property
Covered Property, as used in this Coverage Part, means any property that
a You own, or
b Is in your care, custody or control and for which you are legally liable In addition
to paying for loss to this property, we will defend you against any claim or "suit"
alleging liability for damage to this property, subject to the Defense and the
Supplementary Payments provisions
2 Covered Cause of Loss
A Covered Cause of Loss is an "accident" to an "object" shown in the Declarations An
"object" must be in use or connected ready for use at the location specified for it at
the time of the "accident i'
3 Coverage Extensions
a Expediting Expenses
With respect to your damaged Covered Property, we will pay the reasonable extra
cost to
(1) Make temporary repairs
(2) Expedite permanent repairs, and
(3) Expedite permanent replacement
We restrict the amount payable for Expediting Expenses as explained in the Limits
of Insurance section of this Coverage Form
b Automatic Coverage for A Newly Acquired Location
We will automatically cover an "accident" to an "object" at a newly acquired location
This automatic coverage begins at the time you acquire the property and continues for
90 days under the following conditions
(1) You must inform us, in writing, of the newly acquired location within 90 days
of the date you acquire it,
(2) The "object" must be in use or connected ready for use at the time of
acquisition and throughout the period of automatic coverage and be of a type
that would be included in any "Object" Group Description shown in the
Declarations,
PAGE 1 of 9 Edition July 1987
Form 4000T-Section III
(I ~
M11 RMVR~IGII
(3) The Limit of Insurance and Deductible amount will be the highest amounts
shown in the Declarations for the same type of "object", al Dama (4) InWe will not terruption b or liable
under
ithis ndirect lose refor sulting efromtlan "acciident""uto an
"object", and
(5) You agree to pay an additional premium as determined by us
c Defense
If a claim or "suit" is brought against you allegng that you are liable for damage
to property of another in your care, custody or control, that was directly caused
by an "accident" to an "object", we will either
(1) Settle the claim or "suit", or
or "suit", but keep for ourselves the right to
(2) Defend you against the claim
settle it at any point
d Supplementary Payments
We will pay with respect to any claim or "suit" we defend
(1) All expenses we incur,
(2) The cost of bonds to release attachments, but only for bond amounts within
the Limit of Insurance We do not have to furnish these bonds,
(3) All reasonable expenses incurred by you at our request to assist us in the
investigation or defense of the claim or "suit", including actual loss of earnings
up to $100 a day because of time off from work,
(4) All costs taxed against you in any "suit" we defend, ent (5) Pre-judgement interest awarded against you Limit oarI of the judgmw 11 not
pay If we make an offer to pay the applicable
pay any prejudgment interest based on that period of time after the offer,
and
(6) uAll inter on the dgment sand before we have t paid, offered eto pay, oredeposited in court the of any part of the judgment that is within the Limit of Insurance shown in the
Declarations
These payments will not reduce the Limit of Insurance
B EXCLUSIONS
We will not pay for
1 Ordinance or Law
Any increase in loss caused by or resulting from the enforcement of any ordnance,
law, regulation, rule or ruling regulating or restricting repair, alteration, use,
operation, construction or installation
2 Nuclear Hazard
Loss caused by or resulting from nuclear reaction or radiation, or radioactive
contamination, however caused
3 War and Military Action
Loss caused by or resulting from
a War, including undeclared or civil war,
b Warlike action by a military force, ncluding acovernment,dsovere gn defending eotherr
against an actual or expected attack, by y g
authority using military personnel or other agents, or governmental
c Insurrection, rebellion, revolution, usurped power or action taken by authority in hindering or defending against any of these Edition July 1987
PAGE 2 of 9
Form 4000T-Section III
i
ARKWR~IGII
4 Other Exclusions
Loss caused by or resulting from,
a explospon sof an "object" of a kmdldepay for loss caused by o scribed below and only to "objects" resulting covered by
this insurance and as described on an Object Definitions Endorsement
Explosion of any
(1) Steam boiler,
(2) Electric steam generator,
(3) Steam piping,
(4) Steam turbine,
(5) Steam engine,
(6) Gas turbine, or
(7) Moving or rotating machinery caused by centrifugal force or mechanics
breakdown
b frFire om o an e acc dent" With respect to any elec`tri al equipment forming a part of
an "object", this exclusion is changed to read
Fire or explosion outside the "object" that occurs at the same time as an
"accident" or ensues from an "accident "
C An "accident" that is the direct or indirect result of an explosion or fire,
d Water or other means used to extinguish a fire, even when the attempt is
unsuccessf ul,
e Lightning, if coverage for that cause of loss if provided by another policy of
insurance you have,
f Flood However, if an "accident" results from a flood, we will pay for direct
damage to Covered Property caused by the "accident",
g An "accident" to any "object" while being tested, "accid h lliimited toe earthquake,landsl landslide,mudslide, subsidence or volcanic eruption, indirectly by earth movement, 1 Lack of power, light, heat, steam or refrigeration,
1 A delay in, or an interruption of, any business, manufacturing or processing
activity, or
k Any other indirect result of an "accident" to an "object"
We will not pay for any loss excluded above even though any other cause or event
contributes concurrently or in any sequence to the loss
C LIMITS OF INSURANCE
1 We will not ay more than the applicable Limit of Insurance shown in all drectdamage to Covered Property that results from any "one accident Declarations
for
this Coverage
not t in l he Limit of Insurance to payment edamage
for g
2 The Property are following part of coverage and limitations
Form
PAGE 3 of 9 Edition July 1987
Form 4000T-Section III
r'
ARMVI GII
r
a Expediting Expenses
Our payment for Expediting Expenses will be limited to
(1) $5,000, or
(2) What is left of the Limit of Insurance after we pay your loss for Covered
Property damaged by an "accident",
whichever is less
b Hazardous Substance Limitation
The following applies despite the operation of the Ordinance or Law Exclusion
This limitation does not apply to damage, contamination or pollution caused by
ammonia
If Covered Property is damaged, contaminated or polluted as a reesult of an
"accident" to an "object" by a substance declared to be hazardous to health by an
authorized governmental agency, the most we will pay for any additional expenses
incurred by you for clean up, repair or replacement or disposal of that property is
$5,000 As used here, additional expenses mean expenses incurred beyond those
for which we would be liable if no substance hazardous to health had been
involved
c Ammonia Contamination Limitation
If Covered Property is contaminated by ammonia as a result of an "accident" to
an "object", the most we will pay for this kind of damage, including salvage
expense, is $5,000
d Water Damage Limitation
If Covered Property is damaged by water as a result of an "accident" to covered
refrigerating or air conditioning vessels and piping, the most we will pay for this
kind of damage, including salvage expense, is $5,000
Any payment made under Section C will not increase if more than one insured is shown in
the Declarations
D DEDUCTIBLE
We will first subtract the deductible amount shown in the Declarations from the amount
we would otherwise pay as a result of direct damage to Covered Property arising from an
"accident" If more than one "object" is involved in "one accident", only the highest
deductible will apply
E CONDITIONS
The following conditions apply
1 Loss Conditions
a Duties In the Event of Loss or Damage
You must see that the following are done in the event of loss or damage
(1) Give us a prompt notice of the loss or damage Include a description of the
property involved,
(2) As soon as possible, give us a description of how, when and where the loss or \ 1
damage occurred,
PAGE 4 of 9 Edition July 1987
Form 4000T-Section III
i
AR G T
(3) Allow us a reasonable time and opportunity to examine the property and
premises before repairs are undertaken or physical evidence of the "accident"
is removed You must take whatever measures are necessary for protection
from further damage,
(4) Permit us to inspect the property and records,
(5) If requested, permit us to question you under oath, at such times as may be
reasonably required about any matter relating to this insurance or your claim,
including your books and records In such event, your answers must be signed,
request,
(6) rSen us a signed, sworn equest to settle the claim You must do this within ~60 days after information
and
(7) Cooperate with us in the investigation and settlement of the claim
b Insurance Under Two or More Coverages
If two or mre of not pay more than the actual amount of the loss oorhdamage lsubjectdto the Limit of
Insurance
C Legal Action Against Us
No one may bring a legal action against us under this Coverage Part unless,
(1) There has been full compliance with all the terms of this Coverage Part, and
(2) The action is brought within 2 years after the date of the "accident", or
(3) We agree in writing that you have an obligation to pay for the damage to
Covered Property of others or until the amount of that obligation has been
determined by final judgment or arbitration award No one has the right under
this policy to bring us into an action to determine your liability
d Loss Payable Clause
(1) We will pay you and the loss payee shown in the Declarations for loss due to an
"accident" to an "object", as interests may appear The insurance covers the
interests of the loss payee unless the loss results from conversion, secretion or
embezzlement on your part
(2) CWe may cancel the policy as ancellation ends this agreement asatoothe loss payee's Cnterest ion Condition
If we cancel we will mail you and the loss payee the same advance notice
(3) If we make any payment to the loss payee, we will obtain their rights against
any other party
e Other Insurance
(1) You may have other insurance subject to the same plan, terms, conditions and
provisions as the insurance under this Coverage Part If you do, we will pay
our share of the covered loss or damage Our share is the proportion that the
applicable Limit of Insurance under this Coverage Part bears to the Limits of
Insurance of all insurance covering on the same basis
(2) If there is other Insurance covering the same loss or damage, other than that
described in (1) above, we will pay only for the amount of covered loss or
damage in excess of the amount due from that other insurance, whether you
can collect on it or not
In no case will we pay more than the applicable Limit of Insurance
PAGE 5 of 9 Edition July 1987
Form 4000T-Section III
mw~
GH`Q'
r0l
f Transfer of Rights of Recovery Against Others to Us
if any person or organization to or for whom we make payment under this
Coverage Part has rights to recover damages from another, those rights are
transferred to us to the extent of our payment That person or organization must
do everything necessary to secure our rights and must do nothing after loss to
impair them
g Valuation
(1) We will pay you the amount you spend to repair or replace your property
directly damaged by an "accident " Our payment will be the smallest of
(a) The Limit of Insurance
(b) The cost at the time of the "accident" to repair the damaged property with
property of like kind, capacity, size and quality,
(c) The cost at the time of the "accident" to replace the damaged property on
the same site with other property
(i) Of like kind, capacity, size and quality, and
(ii) Used for the same purpose,
(d) The amount you actually spend that is necessary to repair or replace the
damaged property
(2) As respects any "object", if the cost of repairing or replacing only a part of
the "object" is greater than
(a) The cost of repairing the "object', or
(b) The cost of replacing the entire "object" on the same site,
we will pay only the smaller of (a) or (b)
The repair parts or replacement "object" must be
(c) Of like kind, capacity, size and quality, and
(d) Used for the same purpose
PI
(3) We will not pay you
(a) If the loss or damage is to property that is obsolete or useless to you or
aged property
(b) For any extra cost if you decide to
property of a better kind or quality repair or of larger capacity
(4) If you do not repair or replace the damaged property within 18 months after
the date of the "accident", then we will pay only the smaller of the
(a) Cost it would have taken to repair, or
(b) Actual cash value,
at the time of the "accident"
Paragraph (4) does not apply to any time period beyond the 18 months that we
agree to in writing
2 General Conditions
a Additional Insured
if a person or organization is designated in this Coverage Part as an additional
insured, we will consider them to be an insured under this Coverage Part to the
extent of their interest
b Bankruptcy
The bankruptcy or insolvency of you or your estate will not
obligation under this Coverage Part
Form 4000T-Section III
PAGE 6 of 9
relieve us of any
Edition July 1987
ARKWRIGH
th~s poky by
c cancellation ancel 1 mailinfirst Named Insured Shown in the Declarations may c
g or delivering to us advance written notice of cancellation
2 We may cancel this policy by mailing or delivering to the first Named Insured
written notice of cancellation at least
a 10 days before the effective date of cancellation if we cancel for
nonpayment of premium, or
b 30 days before the effective date of cancellation if we cancel for any other
reason
3 We will mail or deliver our notice to the first Named Insured's last mailing
address known to us
will state the effective date of cancellation The
4 Notice of cancellation
policy period will end on that date
5 If this policy is cancelled, we will send the First Named Insured any premium
refund due If we cancel, the refund will be pro rata If the first Named
Insured cancels, the refund may be less than pro rata The cancellation will be
effective even if we have not made or offered a refund
6 If notice is mailed, proof of mailing will be sufficient proof of notice
d Changes
This policy contains all the agreements between you and us concerning the
insurance afforded The first Named Insured shown in the Declarations is
waterms of ived only h be endorsement issuedsbytus and
authoried to pol cy'sZterms can e be changes amended or the
made a part of this policy
e Examination of Your Books and Records
to this policy at
We may examine and audit o books and and records as they relate
three years afterward
any time during the policy period up to
f Inspections and Surveys
We have the right but are not obligated to
1 Make inspections and surveys at any time,
2 Give you reports on the conditions we find, and
3 Recommend changes
Any inspections, surveys, reports or recommendations relate only to insurability
and the premiums to be charged We do not make safety inspections We do not
orm the
undertak to perf
organ health oresafety of workers ortthe puany bli ceAnd we do not warora tothat provideonditfor
1 Are safe or healthful, or
2 Comply with laws, regulations, codes or standards
reports service
makes insurance any rating,
inspections, surveys, rate
This tiizlation which to us, but
or similar organ or
recommendations
PAGE 7 of 9 Edition July 1987
Form 4000T-Section III
AR ffidGH
g object Group
All "objects" in use or connected ready for use and included in an "Object" C)
Group Definition will be considered as individually described in the t
Declarations The premiums for "objects" included in an "Object" Group
Description will be adjusted as follows
(1) obtain ull Tbase the initial he rates charged will be those in effect on the first day of
coverage
(2) We will charge an additional premium for "objects" that are added to the
policy after the effective date of this policy The additional premium for
these "objects" will be computed pro rata
that are e return premium r will t
(3) allow a return ve date of the policy The the effects "objects"
policy aft be
computed pro rata from the time the "objects" are disconnected
h Policy Period, Coverage Territory
Under this Coverage Part
(1) The "accident" must occur
(a) During the Policy Period shown in the Declarations, and
(b) Within the coverage territory
(2) The coverage territory is
(a) The United States of America, and
(b) Puerto Rico
i Premiums
The first Named insured shown in the Declarations
1 Is responsible for the payment of all premiums, and
2 Will be the payee for any return premiums we pay
The premium shown in the Declarations was computed based on rates in effect
at the time the policy was issued On each renewal, continuation, or
anniversary of the effective date of this policy, we will compute the premium
accordance with our rates and rules effect
during the first or any subsequent anniversary, the then there applicable n rates will
apply
j Representations
By accepting this policy, you agree
(1) The statements in the Declarations are accurate and complete,
(2) Those statements are based upon representations you made to us, and
(3) We have issued this policy in reliance upon your representations
k Suspension
Whenever an "object" is found to be in, or exposed to, a dangerous condition,
any of our "accdent" to that object immediately 1 Ths can be done by deliverng orl
from an mailing
a written notice of suspensions to
(1) Your last known address, or
(2) The address where the "object" is located
PAGE 8 of 9 Edition July 1987
Form 4000T-Section III
ARM UGH
Once suspended in this way, your insurance can be reinstated only by an
endorsement for that "object "
If we suspend your insurance, you will get a pro rata refund of premium for
that "object" But the suspension will be effective even if we have not yet
made or offered a refund
1 Transfer of Your Rights and Duties Under This Policy
Your rights and duties under this policy may not be transferred without
written consent except in the case of death of an individual Named Insured
If you die, your rights and duties will be transferred to your legal
representative but only while acting within the scope of duties as your legal
representative Until your legal representative is appointed, anyone having
proper temporary custody of your property will have your rights and duties but
only with respect to that property
F DEFINITIONS
1 "Accident" means a sudden and accidental breakdown of the "object" or a part of
the "object" At the time the breakdown occurs, it must manifest itself by
physical damage to the "object" that necessitates repair or replacement
None of the following is an "accident"
a Depletion, deterioration, corrosion or erosion,
b Wear and tear,
c Leakage at any valve, fitting, shaft seal, gland packing, joint or connection,
d Breakdown of any vacuum tube, gas tube or brush,
e Breakdown of any electronic computer or electronic data processing
equipment,
f Breakdown of any structure or foundation supporting the "object" or any of its
parts,
g The functioning of any safety or protective device
Turbine Units have separate definitions of "accident" If insured, refer to the
Turbine Units Object Definitions Endorsements
If a strike, riot, civil commotion, act of sabotage or vandalism results in an
"accident" this insurance applies However, the War or Military Action Exclusion
and the conditions of this Coverage Part still apply
in the
Objects Definitions description endorsement
2 specific „ "omeans the bject" categories are shown in
attached to this Coverage Form
3 "One Accident" means
If an initial accident causes other accidents all will be considered "one accident It
All accidents at any one location that manifest themselves at the same time and
are the result of the same cause will be considered "one accident "
4 include an arbitration proceeding to which you must submit with our consent
ARBWRIGHT INSURANCE COMPANY
Editlo July 1987
PAGE 9 0l 9
Form 40007 5ectl0n 111 IBM 00 25 11 851
T
AR GHT
BOILER AND MACHINERY COVERAGE FORM DECLARATIONS
POLICY NO 390659
NAMED INSURED CITY OF DENTON, TEXAS
MAILING ADDRESS 215 E McKinney Street
Denton, Tex9s 76201
POLICY PERIOD From January 1, 1989 to January 1, 1992 at 12 01 A M
Standard Time at your mailing address shown above
PN 390649
IN RETURN FOR THE PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF
THIS POLICY WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS
POLICY
LIMIT OF INSURANCE $10,000,000
PREMIUM See Policy Summary
DEDUCTIBLE See Location Schedule(s)
BUSINESS DESCRIPTION STEAM AND ELECTRIC POWER PLANTS
MORTGAGE HOLDER NONE
-,MORTGAGE HOLDER ADDRESS -
LOSS PAYEE NONE
LOSS PAYEE ADDRESS -
SCHEDULE
LOCATION OF THE "OBJECTS" SHOWN BELOW See Location Schedules
SECTION (1) GROUP DESCRIPTION OR DESCRIPTION OF 11OBJECT" (1) COVERAGE (2)
(1) GROUP CODE(S)
COMP-1
COMP-2
MM-lA
(1) See Clause No 5 on Sheet A for Section(s) and complete Group and Object Description(s)
(2) See Location Schedule(s) for Coverage(s)
FORMS APPLICABLE TO BOILER AND MACHINERY COVERAGE PART See Clause No 7 on
Sheet A
SPECIAL PROVISIONS, IF ANY
1 Form 4502T - BREAKDOWN COVERAGE
2 Expediting Expenses Limit - See Clause No 6 on Sheet A
ARKWRIGHT INSURANCE COMPANY
Form 40007111 DEC PAGE 1 of 1 Ed11io July 1987
r
PN 390659
ARK-MGHT Policy Endorsement No 1
OBJECT DEFINITIONS NO 1 - PRESSURE AND REFRIGERATION OBJECTS
This endorsement applies to Section III of the Policy
1 BOILERS, FIRED VESSELS AND ELECTRIC STEAM GENERATORS
a "Object" means
Any boiler, fired vessel or electric steam generator shown in the Declarations and
includes any
(1) Steel economizer used solely with them,
(2) Steam boiler piping valves, fittings, traps and separators, but only if they
(a) Are on your premises or between parts of your premises, and
(b) Contain steam or its condensate generated in whole or in part in an "object", and
(3) Feed water piping between any steam boiler and a feed pump or injector
b "Object" does not mean
(1) Any part not containing steam or water,
(2) Any boiler setting,
(3) Any insulating or refractory material,
(4) Any piping not containing steam or steam condensate,
(5) Any buried piping,
(6) Piping, radiators, coils, vessels or apparatus, other than those included above,
(7) Any reciprocating or rotating machine, or
(8) Any electrical apparatus
c Any of the following vessels listed below are included within the provisions of this section
when used with an "object "
(1) Condensate return tank,
(2) Cushion or expansion tank used with a hot water heating boiler, and
(3) Indirect water heater tank used for hot water supply service but only if it
(a) Is directly in the water circulating system of the "object" it is used with, and
(b) Does not form part of a storage water tank
d For any boiler or fired vessel, the furnace of the "object" and the gas passages from there
to the atmosphere will be considered as outside the "object "
e An "object" using a heat transfer medium other than water or steam will be covered as
though the medium were water or steam
2 UNFIRED VESSELS
a "Object" means any unfired vessel shown in the Declarations However, "object" does not
include any
(1) Electric steam generator,
(2) Part of a vessel that is not under
(a) Pressure of the contents of the vessel, or
(b) Internal vacuum,
(3) Insulating or refractory material,
(4) Reciprocating or rotating apparatus within or forming a part of the vessel,
(5) Electrical apparatus within or forming a part of the vessel,
Form4501T PAGE 1 OF 3 Edition July 1987
ARMUMH
C; ~
(6) Piping leading to and from the vessel,
(7) Buried vessels or piping,
(8) Cylinder containing a movable plunger or piston, or
(9) Vessel, radiator, inductor, convector or coil connected to or used with a refrigerating
or air conditioning system
b We will consider that the - connected ready for use - requirement of the coverage form
and its endorsements has been met by an "object" in this section if that "object" is
(1) Periodically filled, moved, emptied and refilled in the course of its normal service, and
(2) Used for storage of gas or liquid
3 REFRIGERATING AND AIR CONDITIONING VESSELS AND PIPING
a "Object" means any refrigerating or air conditioning vessel and piping shown in the
Declarations consisting of
(1) Interconnected vessels, coils and piping that contain refrigerant,
(2) Vessels heated directly or indirectly that,
(a) Form part of an absorption type system, and
(b) Function as a generator, regenerator or concentrator, and
(3) Valves and fittings
When the "object" is an absorption system, it also includes hermetic solution pumps,
hermetic evaporator refrigerant pumps and purge pumps (or compressors) together with
their driving electric motors
If the Declarations shown - Additional Vessels and Piping Included - "object" will also f
include
(4) Vessels, radiators, coils and all interconnecting piping along with their values and
fittings that are connected to or used with the system and within which steam, water,
brine or other solution is circulated for cooling, humidity control or space heating
When a vessel uses a heat transfer medium other than water or steam we will consider
the medium or its vapor as substitutes for the words-water or steam-as used in this
Section
b However, "object" does not include any
(1) Boiler,
(2) Steam piping,
(3) Reciprocating or rotating machine or apparatus,
(4) Electrical apparatus except as included in paragraph (3) above,
(5) Electronic computer or electronic data processing equipment as well as, any hose,
flexible device or nonmetallic pipe connected to such apparatus,
(6) Vessel, cooling tower, reservoir or other source of supply of cooling water for a
condenser or compressor as well as any water piping leading to or from such a source
of supply, or
(7) Buried vessels or piping
4 AUXILIARY PIPING
a Object means any piping shown in the Declarations including any valve, fitting, trap or
separator on the piping
b However, "object" does not include any `
(1) Radiator, convector, coil or other vessel or apparatus connected to that piping, or
(2) Buried piping
Form4501T PAGE 2 OF 3 Edition July 1987
-
ARKWRIGHT
0
5 SMALL COMPRESSING AND REFRIGERATING UNITS
a "Object" means any small compressing or refrigerating unit shown in the Declarations,
(not over 15 h p - maximum nameplate rating),
b However, "object" does not include any wiring or piping leading to and from the unit
6 AIR CONDITIONING UNITS
a "Object" means any air conditioning unit shown in the Declarations (not over 600,000
Btu per Hour - maximum nameplate rating) and including any
(1) Interconnected vessels, radiators, inductors, convectors and coils that make use of
a refrigerant, steam, water, brine or other solution and form part of the unit,
(2) Interconnecting piping, valves and fittings containing only a refrigerant, water,
brine or other solution,
(3) Vessels heated directly or indirectly that
(a) Form part of an absorption type unit, and
(b) Function as a generator, regenerator or concentrator,
(4) Compressors, pumps, fans and blowers used solely with the unit together with
their driving electric motors, and
(5) Control equipment used solely with the unit
b However, "object" does not include any
(1) Boiler,
(2) Steam piping,
(3) Vessels, cooling tower, reservoir or other source of supply of cooling water for a
condenser or compressor, or water piping leading to or from such a source of
supply,
(4) Wiring or piping leading to or from the unit, or
(5) Electronic computer or electronic data processing equipment
ARKWRIGHT INSURANCE COMPANY
Fo M4501T PAGE 3 OF 3 Edit on July 1907
(BM 00 26 11 85)
PN 390659
GH`Q' Policy Endorsement No 2
OBJECT DEFINITIONS NO 4 - TURBINE OBJECTS
This endorsement applies to Section III of the Policy
TURBINE UNITS
1 "Object"
a Means any turbine unit shown in the Declarations including any
(1) Turbine,
(2) Combustor, precooler, intercooler, regenerator or heat exchanger of a gas turbine
unit,
(3) Electric generator, pump, compressor, fan, blower, wheel or gear on
(a) Any shaft of the driving turbine or turbines, or
(b) A shaft connected to any of the driving turbines by a coupling, clutch or gear
set,
(4) Mechanical or hydraulic governing mechanism together with any electric motor used
solely with the governing mechanism,
(5) Auxiliary apparatus mounted on the unit or the bed or frame of the unit,
(6) Lubricating oil pump, fuel pump or pump for circulating coolant, if used solely for
the unit and any machine driving such a pump,
(7) Auxiliary electric motor, steam turbine or other apparatus used solely to rotate the
driving turbine or turbines for starting or maintenance purposes,
(8) Apparatus used solely to scavenge a gas turbine unit,
(9) Shaft that froms a part of the unit or connects parts of the unit together with any
coupling, clutch, bearing, gear or gear set on such a shaft, and
(10) Interconnecting wiring, piping or ducts between parts of the unit and mounted on the
unit
b Does not include any
(1) Machines or other apparatus other than those included in paragraphs 1 (1) through
(10) above,
(2) Electronic computer or electronic data processing equipment,
(3) Wiring, piping or ducts leading to or from the unit,
(4) Condenser, its connecting pipe or adapter,
(5) Penstock or draft tube, or
(6) Boiler using exhaust gases from any gas turbine unit
There are two definitions of "accident" for turbine units,
c When the word - BREAKDOWN - is shown in the Declarations the following definition of
"accident" applies to those units
"Accident" means a sudden and accidental breakdown of the "object" or a part of the "object"
At the time the breakdown occurs, it must manifest itself by physical damage to the "object"
that necessitates repair or replacement
None of the following is an "accident"
(1) Depletion, deterioration, corrosion or errosion,
(2) Wear and tear,
(3) Leakage at any valve, fitting, shaft seal, gland packing, joint or connection,
(4) Breakdown of any vacuum tube, gas tube or brush,
(5) Breakdown of any electronic computer or electrons the "processing equipment,
(6) Breakdown of any structure or foundation supporting ] Y of it parts,
Form 4502T PAGE 1 of 2 Fdition July 1987
MT
w.
(7) The functioning of any safety or protective device
(8) The cracking of any part of a gas turbine exposed to the products of combustion
d When the word - EXPLOSION - is shown in the Declarations the following definition of
"accident" applies to those units
"Accident" means a sudden and accidental
a Tearing asunder of any casing, combustor, duct, piping, precooler, mtercooler,
regenerator, or heat exchanger, forming a part of a gas turbine, caused by pressure of gas,
liquid or vapor therein, but not the tearing asunder of any gasket, rupture disc, shaft seal
or seal strip, and cracking does not mean tearing asunder,
b Breaking of the casing of any driving turbine, or the casing of any driven compressor or
any auxiliary turbine of the "object", into two or more separate parts, but not the
breaking of any gasket, rupture disc, shaft seal, seal strip or diaphragm, or
c Breaking of any spindle, rotor or shaft of the "object", into two or more separate parts,
but not the breaking of any blade, bucket or vane whether or not it forms a part of such
spindle, rotor or shaft, of any shroud ring or other fastening, or of any gear or coupling,
nor the loosening of any assembled parts, nor the breaking or loosening of any electrical
conductor or its insulation, or of any band wire, retaining ring, wedge, or their fastenings
We will not pay for the repair or replacement of any electrical conductor or its insulation, or
of any band wire, retaining ring wedge, or their fastening, if that repair or replacement is
made necessary as a result of an "accident" to an "object "
"Accident" does not mean
a Depletion, deterioration, corrosion or errosion of material,
b Wear and tear, or
c The breaking of any structure or foundation supporting the "object" or any part of the
"object "
ARBWRIGHT INSURANCE COMPANY
Farm 9501T PAGE 2 01 2 Ed I Joey 1987
ISM 00 29 11 85)
ARKWIUG111 TN 380658
Policy Endorsement No 3
OBJECT DEFINITIONS NO 2 - MECHANICAL OBJECTS
AND
OBJECT DEFINITIONS NO 3 - ELECTRICAL OBJECTS
This endorsement applies to Section III of the Policy
SECTION A (BM 00 27 11 85)
1 DEEP-WELL PUMP UNITS
a "Object" means any deep-well pump unit shown in the Declarations including any
(1) Nonrotating equipment used solely to start, stop or control the driving electric
motor of the unit, and
(2) Electrical conductors connecting the equipment and motor
b However, "object" does not include any
(1) Other electrical conductor,
(2) Electronic computer or electronic processing equipment,
(3) Piping leading to or from the unit,
(4) Mechanism, appliance or shaft connected to the unit, or
(5) Well casing
2 MISCELLANEOUS MACHINES, GEAR WHEELS AND ENCLOSED GEAR SETS
a "Object" means any machine shown in the Declarations including any control apparatus
mounted on that machine
b However, "object" does not mean any
(1) Mechanism or other apparatus connected to the machine, other than control
apparatus included above,
(2) Shaft on which a machine described as a gear wheel is mounted or the bearing on
any such shaft,
(3) Electrical apparatus,
(4) Electronic computer or electronic data processing equipment unless used solely to
govern or control the machine,
(5) cFelt, wire, screen, die, extrusion hain, belt, clutch plate, brake pad, or any swing or tool s bject g to disc, cutting blade,
frequent, periodic
replacement, or
(6) Piping or duct leading to or from the machine
3 ENGINES, PUMPS, COMPRESSORS, FANS AND BLOWERS
a "Object" means any machine shown in the Declarations including any
(1)
(2)
(3)
Auxiliary or control apparatus mounted on that machine or the bed or frame of that
machine,
Auxiliary electric motor or other apparatus used solely to rotate that machine for
starting or maintenance purposes,
Lubricating oil pump or fuel pump and its driving electric motor if used solely for
that machine, and
Form 4503T PAGE 1 of 3 Edition July lgn7
r
AItI(WRIGI T
r,
(4) When the machine is a reciprocating pump or a reciprocating compressor and
(a) Forms an integral part of a steam engine or internal combustion engine, or
(b) Is connected to such an engine by a coupling clutch or gear set, then
(c) "Object" also includes the driving engine and any interconnecting coupling,
clutch or gear set
b However, "object" does not include any
(1) Apparatus connected to the machine, other than auxiliary or control apparatus
included under a (1) above,
(2) Electrical apparatus other than electric motors included under a (2) and (3) above,
(3) Air tank,
(4) Electronic computer or electronic data processing equipment,
(5) Condenser or its adapter,
(6) Piping or duct leading to or from the machine, or
(7) Well casing
4 WHEELS AND SHAFTING
"Object" means any wheel (except gear wheels) or shaft shown in the Declarations including
any
a Rotating part or parts of any wheel, pulley, disc or coupling excluding the shaft it is
mounted on, the bearings for that shaft and any cutting blade, and
b Rotating shaft and its couplings and bearings /
SECTION B (BM 00 28 11 85)
1 ROTATING ELECTRICAL MACHINES, TRANSFORMERS, AND INDUCTION FEEDER
REGULATORS
a "Object" means any rotating electrical machine, transformer or induction feeder regulator
shown in the Declarations For any rotating electrical machines, "object" also includes
any
(1) Exciter that is
(a) Mechanically connected to that machine, and
(b) Used solely for excitation of that machine,
(2) Shaft of that machine and any gear, wheel or magnetic brake mechanism on the
shaft or on the frame of that machine, if the shaft does not form an integral part of
any other machine,
(3) Continuous shaft that
(a) Forms an integral part of that machine, and
(b) Also forms an integral part of another rotating electric machine including any
gear, wheel or magnetic brake mechanism on the shaft or on the frame of that
machine,
(4) Shaft coupled to that machine including the couplings and bearings on it, if there is
no mechanism other than a coupling on the shaft, and
(5) Nonrotating equipment used solely to start, stop or control any motor shown in the
Declarations including all electrical conductors connecting such equipment with that
motor provided that control equipment does not form a part of a switchboard,
cubicle or bus structure controlling any electrical machine other than the motor
Form 4503T PAGE 2 of 3 Edition July 1987
ARKWIIG6[
2 MISCELLANEOUS ELECTRICAL APPARATUS
a "Object" means any electrical apparatus shown in the Declarations including any
(1) Rotating electrical machine used solely to operate a part of the apparatus, and
(2) Instrument transformer
b However, "object" does not include any
(1) Rotating electrical fnachme other than a machine included above,
(2) Transformer other than an instrument transformer included above,
(3) Induction feeder regulator,
(4) Electronic computer or electronic data processing equipment,
(5) Solid state rectifier unit,
(6) Conduit,
(7) Electrical conductors or piping leading to or from such apparatus, or
(8) Cabinet or compartment in which any part of the apparatus 3s installed
3 SOLID STATE RECTIFIER UNITS
a "Object" means any solid state rectifier unit shown in the Declarations including any
(1) Rectifier,
(2) Transformer used solely with the unit, other than an arc-furnace transformer,
(3) Heat exchanger used solely with the unit together with its interconnected vessels,
coils and piping,
(4) Cooling fan or pump and its driving electric motor if used solely with the unit, and
(5) Electrical conductors connecting parts of the unit
b However, "object" does not mean any
(1) Electrical conductor or piping leading to or from the unit,
(2) Electronic computer or electronic data processing equipment,
(3) Equipment or apparatus other than that listed in paragraphs a (1) through (5) above,
or
(4) Cabinet or compartment on or in which any part of the unit is installed
ARKWRIGHT INSURANCE COMPANY
PAGE 3 of 3 Edh a July 1987
Form 4503T
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