COMMONWEALTH OF VIRGINIA

The terms and conditions of this PLAN are the same as any property, boiler and machinery, aircraft and watercraft insurance policies procured by and issued to the Commonwealth. Money and Securities coverage uses the terms and conditions of the property insurance policy unless otherwise indicated. Pursuant to ' 2.1-526.3 of the Code the Division of Risk Management shall have final responsibility with respect to changes in deductibles and self-insured retentions, coverages, noncoverages, provisions of policies, and quantity and types of coverages.

A. Property, meaning buildings, contents of buildings and/or net income, aircraft and watercraft hulls, is protected through a program of self-insured retention and purchased insurance sufficient to meet the requirements of '2.1-526.7 of the Code.

B. Boiler and Machinery exposures are covered in the same manner as property.

C. Aircraft and watercraft will be insured or self-insured to their fair market value with deductibles or retentions as appropriate or necessary.

D. Money and Securities losses are covered by the PLAN to a maximum of three hundred thousand dollars ($300,000) per occurrence with a one thousand dollar ($1,000) per occurrence deductible. Money and Securities is defined herein as currency, coins, bank notes, traveler=s checks and money orders for sale to the public, negotiable and non-negotiable instruments representing money and including revenue and other stamps, tokens and tickets. Coverage does not apply to accounting or arithmetical error or omission, infidelity or dishonesty, or loss of manuscripts, tickets or records.

II. LIMITS OF LIABILITY

A. The PLAN shall be liable for property and boiler and machinery coverage over and above any agency deductible or self-insured retention up to $1,000,000 in any one occurrence. Losses between $1,000.000 and $300,000,000 are insured through commercial insurance companies and are subject to all coverages, terms and conditions as stated in their policies.

B. The PLAN shall not be liable for any amounts over the insurable value of any property, boiler or machinery as reported to the Division of Risk Management by the insured agency and only to the amount of insurance or self-insurance provided including deductibles or self-insured retentions.

C. The PLAN shall not be liable for more than three hundred thousand dollars ($300,000) in any one loss under Money and Securities.

D. The PLAN shall not be liable for any agency's employee's labor charges incurred except for fully documented labor necessary for the repair or replacement of direct physical damage to property or research.

Payment shall be based upon the employee's hourly rate of pay or a Division of Risk Management approved average hourly rate for each job category. In no event shall the Division of Risk Management be responsible for any overhead or fringe benefits associated with agency labor. All supervisory and management labor shall be excluded from coverage. The plan will provide coverage for necessary direct labor and direct materials to replace or recreate any research project damaged or destroyed by a covered peril including research involving animals or unique biological matter. The PLAN reserves the right to reduce the amount payable if it has been determined by the Division of Risk Management that the charges exceed those which would have been required had a contractor been used.

The PLAN shall not be responsible for reimbursement for a rental or use of state agency owned equipment or vehicles.

III. PROPERTY DEDUCTIBLES

Each loss arising out of one event or occurrence shall be adjusted separately and from the amount of each adjusted loss no less than one thousand dollars ($1,000) shall be deducted from the amount paid. Agency's may increase their individual deductibles by negotiating that amount with the Division of Risk Management with the approval of the Department of General Services Director. Agencies accepting a higher deductible shall receive an appropriate premium reduction as determined by the Division of Risk Management.

IV. PERILS EXCLUDED

A. Glass breakage

B. Any exclusions existing in commercial insurance purchased for this program.

V. DUTIES OF THE INSURED

To notify the Division of Risk Management of any loss immediately, to cooperate fully, to assist and to provide full documentation of any claim within two years of the occurrence.

D.B. Smit, Interim Director
Division of Risk Management

Donald C. Williams, Director
Department of General Services

APPROVED BY THE GOVERNOR

Michael E. Thomas
Secretary of Administration
Pursuant to Executive Order
Number thirty-one dated
October 25, 1994