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The Collaborative Clearinghouse for Lawsuits and Other Claims Against ACE Group Insurance Companies

VOORHEES et al v. ACE AMERICAN INSURANCE COMPANY complaint

ATTENTION: It is possible that this information may no longer be current and therefore may be inaccurate. The index contains both open and closed cases and is not a complete list of cases in which an ACE Insurance Group company is involved. This information is provided to give interested persons an idea of the issues disputed in the indexed cases. For a full understanding of a case, one should read the rest of the court file, including the response. For the most up-to-date and complete information on a case, visit www.pacer.gov or contact the clerk of the relevant court.

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Service of Process
Transmittal
09/11/2015
CT Log Number 527802630
TO: Saverio Rocca, Corporate Counsel
ACE Group
436 Walnut St
Philadelphia, PA 19106-3703
RE: Process Served in Wisconsin
FOR: ACE American Insurance Company  (Domestic State: PA)
Page 1 of  1 / AP
Information displayed on this transmittal is for CT
Corporation's record keeping purposes only and is provided to
the recipient for quick reference. This information does not
constitute a legal opinion as to the nature of action, the
amount of damages, the answer date, or any information
contained in the documents themselves. Recipient is
responsible for interpreting said documents and for taking
appropriate action. Signatures on certified mail receipts
confirm receipt of package only, not contents.
ENCLOSED ARE COPIES OF LEGAL PROCESS RECEIVED BY THE STATUTORY AGENT OF THE ABOVE COMPANY AS FOLLOWS:
TITLE OF ACTION: Daniel Matthew Voorhees, etc. and Broadwater Marine, LTD., Pltfs. vs. ACE
American Insurance Company, Dft.
DOCUMENT(S) SERVED: Summons, Complaint, Exhibit(s), Attachment(s)
COURT/AGENCY: Milwaukee County Circuit Court, WI
Case # 15CV007217
NATURE OF ACTION: Insurance Litigation - Claim for policy benefits
ON WHOM PROCESS WAS SERVED: C T Corporation System, Madison, WI
DATE AND HOUR OF SERVICE: By Process Server on 09/11/2015 at 10:10
JURISDICTION SERVED : Wisconsin
APPEARANCE OR ANSWER DUE: Within 45 days of receipt
ATTORNEY(S) / SENDER(S): Frank R. Terschan
Terschan, Steinle, Hodan & Ganzer, Ltd.
309 North Water Street
Suite 215
Milwaukee, WI 53202
414-258-1010
REMARKS: Please note the process server underlined, circled, initialed and/or highlighted the
entity name served prior to receipt by CT.
ACTION ITEMS: CT has retained the current log, Retain Date: 09/11/2015, Expected Purge Date:
09/16/2015
Image SOP
Email Notification,  Adrienne Logan  ADRIENNE.LOGAN@acegroup.com
Email Notification,  Marie Morrill  marie.morrill@acegroup.com
Email Notification,  Angela Jay  angela.jay@acegroup.com
SIGNED: C T Corporation System
ADDRESS: 8020 Excelsior Dr Ste 200
Madison, WI 53717-1998
TELEPHONE: 608-833-4821
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 1 of 38 Document 1-1
STATE OF WISCONSIN  CIRCUIT COURT  MILWAUKEE COUNTY
15CV007217
DANIEL MATTHEW VOORHEES abo
WY BROAD WATER, and BROAD WATER
MARINE, LTD.
500 W. Brown Deer Road #101,
Milwaukee, WI 53217,
Plaintiffs,
vs.
ACE AMERICAN INSURANCE COMPANY
436 Walnut Street
P.O. Box 1000
Philadelphia, PA 19 106-3703
do Registered Agent
CT Corporation System
8020 Excelsior Dr Ste 200
Madison, WI 53717
Defendant.
AUTMTI(
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SEF 03 2015
JUHN onmnr, 1
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C I r k o f C i r c u i t C o u n
Case No.
Case Codes: 30303; 30106
HON. DAVI D L. BOROWSKI , BR. 12
C I VI L K
SUMMONS
THE STATE OF WISCONSIN
To each person named above as a defendant:
You are hereby notified that the Plaintiff named above has filed a lawsuit or other
legal action against you. The Complaint, which is attached, states the nature and basis of
the legal action.
Within forty-five (45) days of receiving this Summons, you must respond with a
written answer, as that term is used in Chapter 802 of the Wisconsin Statutes, to the
Complaint. The Court may reject or disregard an answer that does not follow the
requirements of the statutes. The answer must be sent or delivered to:
Milwaukee County Courthouse
901
9th
Ninth Street
Milwaukee, WI 53233
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 2 of 38 Document 1-1
and to Plaintiffs attorney, Frank R. Terschan, whose address is Terschan, Steinle, Hodan
& Ganzer, Ltd., 309 North Water Street, Suite 215, Milwaukee, Wisconsin 53202. You
may have an attorney help or represent you.
If you do not provide a proper answer within forty-five (45) days, the Court may
grant judgment against you for the award of money or other legal action requested in the
Complaint, and you may lose your right to object to anything that is or may be incorrect
in the Complaint. A judgment may be enforced as provided by law. A judgment
awarding money may become a lien against any real estate you own now or in the future,
and may also be enforced by garnishment or seizure of property.
Dated at Milwaukee, Wisconsin this 1 st day of September, 2015
Terschan, Steinle, Hodan & Ganzer, Ltd.
Attorneys for the Plaintiffs
By: 2'.9 /f-". ZL
Frank R. Terschan
State Bar No.: 1016256
P.O. ADDRESS:
309 North Water Street, Suite 215
Milwaukee, WI 53202
(414) 258-1010
2
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 3 of 38 Document 1-1
STATE OF WISCONSIN  CIRCUIT COURT  MILWAUKEE COUNTY
DANIEL MATTHEW VOORHEES abo
MIY BROAD WATER, and BROAD WATER
MARINE, LTD.
500W. Brown Deer Road #101,
Milwaukee, WI 53217,
Plaintiffs,
vs.
ACE AMERICAN INSURANCE COMPANY
436 Walnut Street
P.O. Box 1000
Philadelphia, PA 19106-3703
do Registered Agent
CT Corporation System
8020 Excelsior Dr Ste 200
Madison, WI 53717
I SCV1JOT2 1 7
AUThPMTI(TP
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[SEP03 2015,
JUH i v  i
C l e r k o f Ci r c u i t Co u n
Case No.
Case Codes: 30303; 30106
3
Defendant.
COMPLAINT
COMES NOW the plaintiffs, Daniel Matthew Voorhees abo M!Y Broadwater and
Broadwater Marine, Ltd., by and through its attorney, Frank R. Terschan, and Terschan,
Steinle, Hodan & Ganzer, Ltd. and as a complaint against the Defendant, ACE American
Insurance Company, allege the following:
PARTIES
1.  
Plaintiff Daniel Matthew Voorhees is the beneficial owner of M/Y
Broadwater. He is a resident of the District of Columbia. For purposes of the present
dispute, he is listed in the applicable insurance policy with a mailing address of:
Broadwater Marine do BGC, 500 W Brown Deer Road #101, Milwaukee, WI 53217.
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 4 of 38 Document 1-1
2.  Claimant Broadwater Marine, Ltd. is a Cayman Islands holding company
with a mailing address on the applicable insurance policy of: Broadwater Marine do
BGC, 500 W Brown Deer Road #101, Milwaukee, WI 53217.
ACE American Insurance Company ("ACE") is an insurance company
with a mailing address listed on its insurance policy as: 436 Walnut Street, P.O. Box
1000, Philadelphia, PA 19106-3703. Upon information and belief, ACE is licensed to
and does insurance business in Wisconsin.
JURISDICTION AND VENUE
Pursuant to Wis. Stat. § 801.05, this Court has jurisdiction over ACE
because ACE is a corporation that is engaged in substantial and not isolated activities
within this state, and has sufficient minimum contacts with Wisconsin so as to render the
exercise of jurisdiction by the Wisconsin courts permissible under traditional notions of
fair play and substantial justice.
Venue is proper in this Court pursuant to the venue clause in the
applicable insurance policy, which states that disputes arising under the policy shall be
venued where the policyholder lists its address on the policy declarations page.
GENERAL ALLEGATIONS
This is a dispute over insurance coverage for damages, expenses, and lost
charter income for the yacht M/Y Broadwater.
Plaintiffs purchased from ACE marine insurance policy number YMY
Y09 164510 (the "Policy"), which, among other things, promises to pay for damages to
the yacht, consequential damages, and extra expenses, and to reimburse the owner for lost
2
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 5 of 38 Document 1-1
charter income. A copy of the Policy, as contained in plaintiffs' files, is attached hereto
as Exhibit A.
In April 2014, Plaintiffs purchased a 1990 163 foot Feadship custom yacht
named M/Y Inevitable (renamed M/Y Broadwater) for $9.5 million.
The yacht underwent an extensive pre-purchase survey and sea trial in
March 2014 in Fort Lauderdale, Florida. No engine or power issues were discovered
during the pre-purchase survey and sea trial.
ACE reviewed the pre-purchase survey prior to writing the Policy. During
underwriting of the Policy, ACE issued a Survey Recommendation Compliance
Certification which required that certain repairs be made to the yacht by September 17,
2014.
The Policy took effect on April 17, 2014.
At the time of purchase, the yacht was moored in Nassau, Bahamas. After
plaintiffs took possession of the yacht, it was sailed to Fort Lauderdale, Florida. During
the crossing, the yacht experienced sudden engine and power system failure that resulted
in significant damage to the yacht. Subsequent investigation revealed extensive damage
to the yacht's generators, exhaust, and power systems, rendering the vessel inoperable.
Plaintiffs were under contract to charter the yacht to Millennium Charters
in West Palm Beach, Florida. As a result of the damage, the charter contract, worth
$450,000, was cancelled.
Extensive repairs of the yacht were undertaken over the subsequent year,
at a total cost of nearly $1 million.
£ 3
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 6 of 38 Document 1-1
Plaintiffs provided timely notice to ACE of the damage to the yacht. In
August 2014, ACE disclaimed any obligation to pay for the damage to the yacht on the
basis that the damage pre-existed the ACE policy period. ACE took this position despite
the fact that the yacht was extensively surveyed prior to ACE underwriting the coverage
and ACE signed off on the survey. No relevant pre-existing damage was noted on the
survey that ACE approved or on ACE's Survey Recommendation Compliance
Certification.
ACE subsequently revoked its disclaimer in September 2014 and provided
plaintiffs with a Proof of Loss form to complete. Plaintiffs timely completed the Proof of
Loss form.
In October 2014, ACE requested additional damages documentation,
access to the yacht for inspection purposes, and stated that it wished to conduct an
examination under oath.
In November 2014, while at Bahia Mar Marina in Fort Lauderdale,
Florida, the yacht suffered additional damage to its hull and propulsion system that
necessitated additional repairs.
In November 2014, ACE hired Bryan Emond of SEA, Ltd. to inspect the
yacht.
In November 2014, plaintiffs provided extensive documentary evidence to
ACE in response to ACE's requests for information.
In December 2014, ACE requested additional information regarding the
loss. Additional information was provided to ACE in response to the request.
11
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 7 of 38 Document 1-1
22.  In January 2015, ACE requested more information regarding the loss, and
also requested a new, more detailed Proof of Loss.
In a March 16, 2015 letter, ACE claims adjuster Stuart Bamhardt
requested additional information, and stated that ACE's "preliminary analysis" indicated
no relation between the April 2014 incident and the costs of repair. Mr. Barnhardt's
letter stated that "[o]ur investigation remains ongoing and we will be happy to consider
any further documentation substantiating these charges."
In May 2015, plaintiffs submitted a revised and more detailed Proof of
Loss to ACE. Plaintiffs also requested that ACE follow the dispute resolution procedure
in the Policy, including arbitration, to resolve any disputed portions of the claim.
In May 2015, plaintiffs entered into a charter agreement to charter a
replacement yacht due to the ongoing repairs to MIY Broadwater. The cost for the
replacement yacht charter was approximately $183,000.
In a June 9, 2015 letter, ACE adjuster Stuart Barnhardt stated that the
revised Proof of Loss was "rejected without prejudice" due to insufficient detail.
On June 23, 2015, plaintiffs submitted a third Proof of Loss to ACE.
Also on June 23, 2015, plaintiffs received a copy of a letter dated June 22,
2015 from ACE's Stuart Bamhardt stating that his investigation revealed that the amount
of damage caused to the yacht as a result of the November 2014 incident at Bahia Mar
Marina in Fort Lauderdale fell below the deductible.
On June 24, 2015, ACE remitted to plaintiffs a check in the amount of
$800, representing what ACE asserted it owed on the claim.
On June 24, 2015, plaintiffs served ACE with an Arbitration Demand.
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 8 of 38 Document 1-1
On July 31, 2015, ACE's counsel wrote a letter stating that ACE would
not participate in arbitration because the request for arbitration was untimely under the
policy, citing the Policy's one-year suit limitation clause. In this letter, ACE also rejected
plaintiffs third Proof of Loss and invited plaintiffs to correct deficiencies in the Proof of
Loss and resubmit another revised Proof of Loss.
CLAIMS FOR RELIEF
COUNT I - BREACH OF CONTRACT
32.  
The preceding paragraphs are hereby incorporated and realleged as if fully
stated herein.
The Policy is a valid and enforceable contract of insurance, for which all
premiums have been paid.
Plaintiffs have performed all of their obligations under the Policy, and any
and all conditions precedent to plaintiffs' rights under that Policy have been satisfied,
waived, or defendant is equitably estopped from relying on them.
Pursuant to the terms and conditions of the Policy, ACE has breached its
obligation to pay plaintiffs for losses they suffered as a result of damage to and loss of
use of MIY Broadwater.
As a direct and proximate result of ACE's breach, plaintiffs have been
deprived the benefits of the insurance coverage for which they paid substantial premiums.
COUNT II— EQUITABLE ESTOPPEL
The preceding paragraphs are hereby incorporated and realleged as if fully
stated herein.
r o l
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 9 of 38 Document 1-1
ACE is equitably estopped from relying on the one-year suit limitation
provision in the Policy because ACE induced plaintiffs to withhold initiating suit or
arbitration through its actions and communications with plaintiffs.
Plaintiffs reasonably relied to their detriment on ACE's promises to
investigate the claim and consider revised Proofs of Loss.
After the inducement for delay ceased, plaintiffs did not unreasonably
delay in attempting to bring an arbitration proceeding and then, when ACE refused to
participate in arbitration, this action.
Due to ACE's fraudulent and inequitable conduct, ACE should be
estopped from asserting a statute of limitations defense.
COUNT III - BREACH OF GOOD FAITH AND FAIR DEALING
The preceding paragraphs are hereby incorporated and realleged as if fully
stated herein.
The Policy is a valid and enforceable contract of insurance, for which all
premiums have been paid.
Plaintiffs have performed all of their obligations under the Policy, and any
and all conditions precedent to plaintiffs' rights under that Policy have been satisfied or
waived.
Because of the fiduciary relationship between an insurer and its insured,
which arises from the duty of good faith and fair dealing implied in every contract,
plaintiffs had a right to expect to be treated fairly and to have legitimate claims paid
promptly.
7
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 10 of 38 Document 1-1
46.  
ACE acted in bad faith towards plaintiffs by stringing plaintiffs along and
by conducting its claim investigation in such a way as to prevent it from learning the true
facts upon which the plaintiffs' claim is based.
ACE knew or should have known that it had no reasonable basis to deny
plaintiffs' claim, and its improper investigation and repeated delay and rejection of
plaintiffs' Proofs of Loss reflect an absence of honest, intelligent action and consideration
of its insureds' claim and reckless disregard for its insureds' rights under the Policy.
Among other things, ACE's bad faith claims handling included the
following violations of Wis. Admin. Code Sec. INS 6.11(3):
Failure to promptly acknowledge pertinent communications with respect to claims
arising under insurance policies;
Failure to initiate and conclude a claims investigation with all reasonable
dispatch;
Failure to promptly provide necessary claims forms, instructions and reasonable
assistance to insureds and claimants under its insurance policies;
Failure to attempt in good faith to effectuate fair and equitable settlement of
claims submitted in which liability has become reasonably clear;
Failure, where appropriate, to make use of arbitration procedures authorized or
permitted under any insurance policy;
Failure to affirm or deny coverage of claims within a reasonable time after proof
of loss has been completed; and
Knowingly misrepresenting to claimants pertinent facts or policy provisions
relating to coverages involved.
8
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 11 of 38 Document 1-1
49.  
As a direct and proximate result of ACE's bad faith conduct, plaintiffs
have sustained and incurred, and are continuing to incur, substantial damages and
expenses.
50.  
As a direct, foreseeable and proximate result of ACE' s bad faith conduct
and breach of its obligations to plaintiffs, plaintiffs are entitled to recover the full amount
of their damages, including all incidental, consequential and compensable damages,
along with pre and post-judgment interest and attorneys' fees.
RELIEF REQUESTED
WHEREFORE, based upon the forgoing allegations, plaintiffs request that this
Court enter judgment for damages in favor of plaintiffs and against defendant, in an
amount to be determined at trial, but believed to be in excess of $1 million, and award
plaintiffs their reasonable attorneys' fees and costs, along with pre and post-judgment
interest, and any other and further relief the Court deems just, equitable, and proper.
JURY TRIAL DEMANDED
Plaintiffs respectfully request a jury trial on all claims, as well as on each defense
which may be raised by defendant, that are triable to a jury.
Dated at Milwaukee, Wisconsin this
1st
day of September, 2015
Terschan, Steinle, Hodan & Ganzer, Ltd.
Attorneys for the Plaintiffs
BY7J
Frank R. Terschan
State Bar No.: 1016256
P.O. ADDRESS:
309 North Water Street, Suite 215
Milwaukee, WI 53202
(414) 258-1010
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 12 of 38 Document 1-1
Elite Yacht
Policy
Policy Number: YMY Y09164510
ace. recreational
marine insurance
NEW
Agency Code, Name & Address  Commission
700581  20%
BRUCE GENDELMAN COMPANY INC
500 W. BROWN DEER ROAD
SUITE 101
MILWAUKEE, WI 53217-1627
This is your Elite Yacht
Policy's Declarations Page. Please read carefully. It gives you important facts about your coverage.
The Company Providing This Insurance  
ACE ANERICAN INSURANCE COMPANY
436 Walnut Street, P.O. Box 1000
Phila, PA 19106-3703
The Named Insured Under This Policy:
Broadwater Marine
Address:
 
1801 Pennsylvania Ave, #700
Washington, DC 20006
The Vessel Covered By This Policy
AME)
'INEVITABLE'
(YEAR BUILT)  (LENGTH)  .  (MAKE) (MODEL) (DOC. OR HULL IDENT. NO)
1990  163'  Feadship Custom IMO 1002782
This policy will take effect on  4/17/2014 and end on  4/17/2015
It will begin and end at 12:01 A.M. standard time, at the place where this policy was issued.
In return for the "Total Premium," listed below, we agree to provide the insurance coverages for which a premium is shown in the chart
below.
COVERAGE PROVIDED -AMOUNT OF DEDUCTIBLE
PARTS COVERAGES INSURANCE AMOUNT PREMIUM
A  Property Damage $  
9,500,000 $  
47,500 $  52,015
Windstorm Deductible . $  
Not Applicable $  0
Commercial Towing & Assistance $  100, 000 $  
0 $  0
B  Liability Coverage $  
10,000,000 $  
0 $  7,700
C  Medical Payments $  100,000 $  
0 $  0
D  Uninsured Boater $  2,000,000 $  
0 .  $  0
E  L&HCA $ Statutory Limits $ $ (included in "B" if any)
F  Trailer $  Not Covered $ $
G  Personal Property $  100,000 $  
0 $  0
Premium Bearing Endt(s): See Attached Endorsements
$  3,150
 
TOTAL PREMIUM  $ 62,865
LIMITS ON USE: See Navigation Warranty MA-7W74
ENDORSEMENTS:
ALL21101 CC-1E15 M.A-1797lb MA-4656b MA-7W74a MA-8301g MA-9S87a MA-9S88
MA- 9S89 a
Lay-up Warranty  It is warranted the vessel will be laid up for part of the year, the dates are:
From noon:  
To noon:
LOSS PAYEE:  We will make payments for Part A: Property Damage losses to the Assured and
MA-7N39k ( 07/11)  PRODUCER COPY
 
E/\
EXHIBIT
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 13 of 38 Document 1-1
TRADE OR ECONOMIC SANCTIONS ENDORSEMENT
Named Insured  Broadwater Marine
Endorsement Number
Policy Symbol Policy Number Policy Period
Effective Date of Endorsement
YMY Y09164510 4/17/2014 TO 4/17/2015
4/17/2014
Issued By (Name of Insurance Company)
ACE AMERICAN INSURANCE COMPANY
Insert the policy number. The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy..
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE R1AD IT CAREFULLY.
This insurance does not apply to the extent that trade or economic sanctions or other laws or regulations prohibit us from
providing insurance, including, but not limited to, the payment of claims. All other terms and conditions of the policy remain
unchanged.
ALL-21101 (1 1/06) Ptd. In U.S.A.  
Page 1 of I
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 14 of 38 Document 1-1
Named Insured Broadwater Marine
Endorsement Number
Policy Symbol Policy Number Policy Period
Effective Date of Endorsement
YMY Y09164510 4/17/2014 TO 4/17/2015
4/17/2014
Issued By (Name of Insurance Company)
ACE ANERICAN INSURANCE COMPANY
Insert the policy number. The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation or the policy.
ELITE - DELETION OF TERRORISM EXCLUSION
Notwithstanding anything to the contrary in the Policy to which this endorsement is
attached, and in consideration of the premium charged, it is understood and agreed
that the Policy is amended by the following:
The Policy at GENERAL CONDITIONS AND EXCLUSIONS, paragraph TERRORISM EXCLUSION is
deleted in its entirety.
ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED.
CCIEI5 MS-6084
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 15 of 38 Document 1-1
FIRE EXTINGUISHING SYSTEM AGREEMENT
Named Insured Broadwater Marine
Endorsement Number
Vessel 1
Policy Symbol Policy Number Policy Period
Effective Date of Endorsement
YMY Y09164510 4/17/2014 TO 4/17/2015 4/17/2014
Issued By (Name of Insurance Company)
ACE ANERICAN INSURANCE COMPANY
The above is required to be completed only when this endorsement is issued subsequent to the preparation of the policy.
You agree that your yacht is equipped with a built-in and automatic system of fire extinguishing apparatus, properly installed in the
engine room and maintained in good and efficient working order.
ALL OTHER TERMS, CONDITIONS AND VALUATIONS REMAINING UNCHANGED
MA-4656b Ptd. in U.S.A.
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 16 of 38 Document 1-1
NAVIGATION WARRANTY
Named Insured Broadwater Marine
Endorsement Number
Vessel 1
Policy Symbol Policy Number
Policy Period
Effective Date of Endorsement
YNY
1Y09164510
4/17/2014 TO 4/17/2015
4/17/2014
Issued By (Name of Insurance Company)
ACE ANERICAN INSURANCE COMPANY
Insert the policy number. The remainder of the information is to be completed only when this endorsement is issued subsequent to toe preparanon or inc
poiiiy.
Warranted confined to:
Atlantic, Gulf and inland waters of North America and Central America and
including the waters of the Caribbean Sea within the following parameters:
not North of Halifax, Nova Scotia;
not South of 8 degrees North Latitude;
not East of 58 degrees West Longitude;
excluding Panama Canal transit; and
the coastal waters of Cuba, Haiti, Nicaragua Colombia and Venezuela.
Navigation is extended also to include transatlantic crossing on its own bottom,
navigating coastwise and inland tributary waters of the Mediterranean Sea not
east of 34
degrees East Longitude and excluding the coastal waters of Tunisia,
Algeria, Libya and Egypt.
ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED.
MA-7W74a (5/97) Ptd. in U.S.A.
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 17 of 38 Document 1-1
CAPTAIN AND CREW LIMITATION ENDORSEMENT
Named Insured Broadwater Marine
Endorsement Number
Vessel 1
P olic y Symbol Policy Number Policy Period
Effective Date of Endorsement
YMY Y09164510 4/17/2014 TO4/17/2015
4/17/2014
Issued By (Name of Insurance Company)
ACE AMERICAN INSURANCE COMP ANY
Insert the policy number. The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy.
In consideration of the additional premium of $3,150, and subject to the terms and conditions contained herein, it is
warranted that there shall not be more than (10) crew member(s), including the captain, employed aboard the Insured
Vessel at any one time. The maximum limit of liability for coverage applicable to the Jones Act or under General Maritime
Law, per each accident or Occurrence is $10,000,000.,
which shall be included within and shall not increase the
AMOUNT OF INSURANCE applicable to PART B: LIABILITY COVERAGE as shown on the Declarations Page or as
modified by endorsement attached to the Policy, if any.
It is further understood and agreed that in the event additional crew are to be employed, you shall give prior notice to this
Company and pay such additional premium as is required. If you fail to give such prior notice and at the time of loss in
respects to crew there is a greater number employed than that which is stated above, the insurance shall respond only in
the proportion that the stated number of crew bears to the number on board at the time of the accident.
ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED.
MA-8301g (01/12)
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 18 of 38 Document 1-1
ADDENDUM TO
AMERICAN INSTITUTE HULL WAR RISKS
AND STRIKES CLAUSES— DECEMBER 1, 1977
(APRIL 1,1984)
Named Insured
Broadwater Marine
Endorsement Number
Vessel 1
Policy Symbol Policy Number Policy Period Effective Date of Endorsement
YMY Y09164510 4/17/2014 TO 4/17/2015 4/17/2014
Issued By (Name of Insurance Company)
ACE AMERICAN INSURANCE COMPANY
Insert the policy number. The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy.
It is understood and agreed that the American Institute Hull War Risks and Strikes Clauset of December 1, 1977, for attachment to American Institute Hull Clauses
(June 2, 1977), and to which this Addendum is attached are amended as follows:
For the purpose of this Addendum only, line 241of the American Institute Hull clauses (June 2, 1977) - EXCLUSION (a) - shall be deemed amended by
adding "confiscation or expropriation."
In addition to the risks enumerated in the above described War Risks and Strikes Clauses, the following is added; "7. Confiscation or expropriation."
In the event that the Vessel shall have been the subject of capture, seizure, arrest, restraint, detainment, confiscation or expropriation, and the Assured, by
reason thereof, has lost the free use and disposal of the Vessel for a continuous period of twelve (12) months (even though condemnation has not occurred),
than for the purposes of ascertaining whether the Vessel is a constructive Total Loss, the Assured shall be deemed to have been deprived of the possession of
the Vessel without any likelihood of recovety.
"Restraint" as used in this paragraph 3 shall be deemed to include the inability of the Vessel to sail from any port or place to the high seas because of closure
of the connecting waterway to all vessels of similar size or draft due to blockage of such waterway caused by hostilities or warlike operations.
Clause (1) of the EXCLUSIONS shall be amended to read as follows: 'Capture, seizure, arrest, restraint, detainment, confiscation or expropriation by the
Government of the United States or of the country in which the Vessel is owned or registered."
The Warranty at line 42 shall be amended to read: "Warranted not to abandon in case of capture, seizure, arrest, restraint, detainment, confiscation or
expropriation until after condemnation of the property insured, or, in circumstances set forth in 3. above, after twelve (12) months, whichever first occurs."
The period of fourteen (14) days provided for in subparagraph "D" of the AUTOMATIC TERMrNATION AND CANCELLATION Clauses, shall be
amended to seven (7) days wherever appearing therein.
ALL OTHER TERJ1S AND CONDITIONS REMAIN UNCHANGED
Authorized Agent
MA-9S89a (12/03)
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 19 of 38 Document 1-1
Named Insured Broadwater Marine
Endorsement Number
Vessel 1
Policy Symbol Policy Number Policy Period
Effective Date of Endorsement
YMY Y09164510 4/17/2014 TO 4/17/2015 4/17/2014
Issued By (Name of Insurance Company)
ACE AMERICAN INSURANCE COMPANY
Insert the policy number. The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
Notwithstanding anything to the contrary in the Policy to which this endorsement is
attached and in consideration of the premium charged, it is understood and agreed by
the named insured and the Insurer that the Policy is amended by the following:
The Policy at PART A: PROPERTY DAMAGE COVERAGE, paragraph DEDUCTIBLE WAIVER is
deleted in its entirety.
ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED
CCIEI5 r4S-6112
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 20 of 38 Document 1-1
Named Insured Broadwater Marine
Endorsement Number
Vessel 1
Policy Symbol Policy Number P ol ic y Period
Effective Date of Endorsement
YNY Y09164510 4/17/2014 TO 4/17/2015
4/17/2014
Issued By (Name of Insurance Company)
ACE AMERICAN INSURANCE COMP ANY
Insert the policy number. The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation
of the policy.
MACHINERY DAMAGE DEP RECIATION ENDORSEMENT
This endorsement appl ies to an Insured Vessel onl y if shown on the Dec l arations P age
or the appl ic abl e Sc hedul ed Vessel Endorsement for that Insured Vessel .
It is understood and agreed y our ACE RECREATIONAL MARINE INSURANCE P OLICY is amended
as fol l ows:
The fol l owing provision is added to P ART A: P ROP ERTY DAMAGE COVERAGE, P ROP ERTY
SUBJECT TO DEP RECIATION:
d. mac hinery inside the Insured Vessel whic h is over ten (10) y ears ol d.
ALL OTHER TERMS AND CONDITIONS OF THE P OLICY REMAIN UNCHANGED.
CCIEI5I4S-29930
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 21 of 38 Document 1-1
AMERICAN INSTITUTE
Hull War Risks and Strikes Clauses
(including Automatic Termination and Cancellation Provisions)
December 1, 1977
Named Insured Broadwater Marine
Endorsement Number
Vessel 1
P olic y Symbol Policy Number Policy Period
Effective Date of Endorsement
YMY Y09164510 4/17/2014 TO 4/17/2015
4/17/2014
Issued By (Name of Insurance Company)
ACE AMERICAN INSURANCE COMP ANY
Insert the policy number. The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy.
Effective on the date shown above and in consideration of a premium in the amount of$  
0
this insurance, subject to the exclusions set forth herein, covers only those risks which would be covered by the attached Policy (including collision liability) in the
absence of the WAR, STRIKES AND RELATED EXCLUSIONS clause contained therein but which are excluded thereby and which risks shall be construed as also
including:
I.  Any mine, bomb or torpedo not carried as cargo on board the Vessel:
Any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter;
Civil war, revolution, rebellion, insurrection, or civil strife arising therefrom;
Strikes, lockouts, political or labor disturbances, civil commotions, riots, martial law, militaty or usurped power;
Malicious acts or vandalism to the extent only that such risks are not covered by the attached Policy;
Hostilities or warlike operations (whether there be a declaration of war or not) but this paragraph (6) shall not include collision or contact with aircraft,
rockets or similar missiles, or with any fixed or floating object, or stranding, heavy weather, fire or explosion unless caused directly by a hostile act by or
against a belligerent power which act is independent of the nature of the voyage or service which the Vessel concerned or, in the case of a collision, any
other vessel involved therein, is performing. As used herein, "power" includes any authority maintaining naval, military or air forces in association with a
power.
EXCLUSIONS
This insurance does not cover any loss, damage or expense caused by, resulting from, or incurred as a consequence of.- f:
a. Any hostile detonation of any weapon of war described above in paragraph (2);
Outbreak of war (whether there be a declaration of war or not) between any of the following countries: United States of America, United Kingdom, France,
the Union of Soviet Socialist Republics or the People's Republic of China;
C.  Delay or demurrage;
Requisition or preemption;
Arrest, restraint or detainment under customs or quarantine regulations and similar arrests, restraints or de- tainments not arising from actual or impending
hostilities;
Capture, seizure, arrest, restraint, detainment, or confiscation by the Government of the United States or of the country in which the Vessel is owned or
registered.
HELD COVERED AND OTHER PROVISIONS
The held covered clause appearing under the heading ADVENTURE in the attached Policy is deleted and the following clause substituted therefore:
"Subject to the provisions of the Automatic Termination and Cancellation Clauses below, held covered in the event of any breach of conditions as to
loading or discharging of cargo at sea, or towage or salvage activities provided (a) notice is given to the Underwriters immediately following receipt of
knowledge thereof by the Assured, and (b) any amended terms of cover and any additional premium required by the Underwriters are agreed to by the
Assured."
If at the natural expiry time of this insurance the Vessel is at sea, this insurance will be extended, provided previous notice be given to the Underwriters, for an
additional premium at a rate to be named by the Underwriters, until midnight Local Time of the day on which the Vessel enters the next port to which she proceeds and
for 24 hours thereafter, but in no event shall such extension affect or postpone the operation of the Automatic Termination and Cancellation Clauses below.
Warranted not to abandon in case of capture, seizure or detention, until after condemnation of the property insured.
The provisions of the attached Policy with respect to constructive Total Loss shall apply only to claims arising from physical damage to the Vessel.
(Continued on next page)
MA- 9587a (12/03)  
Page 1 of 2
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 22 of 38 Document 1-1
(Continued)
AUTOMATIC TERMINATION AND CANCELLATION CLAUSES
This insurance and any extension thereof, unless sooner terminated by the provisions of section B or C, shall terminate automatically upon and simultaneously
with the occurrence of any hostile detonation of any nuclear weapon of war as defined above, wheresoever or whensoever such detonation may occur and whether
or not the Vessel may be involved.
This insurance and any extension thereof, unless sooner terminated by the provisions of section A or, C, shall terminate automatically upon and simultaneously
with the outbreak of war, whether there be a declaration of war or not, between any of the following countries: United States of America, United Kingdom,
France, the Union of Soviet Socialist Re- publics or the People's Republic of China.
This insurance and any extension thereof, unless sooner terminated by section A or B, shall terminate automatically if and when the Vessel is requisitioned, either
for title or use.
This insurance and any extension thereof may be cancelled at any time at the Assured's request, or by Underwriters upon 14 days' written notice being given to the
Assured, but in no event shall such cancellation affect or postpone the operation of the provisions of sections A, B or C. Written or telegraphic notice sent to the
Assured at his (its) last known address shall constitute a complete notice of cancellation and such notice mailed or telegraphed to the said Assured, care of the
broker who negotiated this insurance, shall have the same effect as if sent to the said Assured direct The mailing of notice as aforesaid shall be sufficient proof of
notice and the effective date and hour of cancellation shall be 14 days from midnight Local Time of the day on which such notice was mailed or telegraphed as
aforesaid. Underwriters agree, however, to reinstate this insurance subject to agreement between Underwriters and the Assured prior to the effective date and hour
of such cancellation as to new rate of premium and/or conditions and/or warranties.
RETURNS OF PREMIUM
The RETURNS OF PREMIUM clause of the attached Policy is deleted and the following substituted therefore:
'"In the event of an automatic termination or cancellation of this insurance under the provisions of sections A, B, C or D above, or if the Vessel be sold,
pro rata net return of premium will be payable to the Assured, provided always that a Total Loss of the Vessel has not occurred during the currency of
this Policy. In no other event shall there be any return of premium."
THIS INSURANCE SHALL NOT BECOME EFFECTIVE IF, PRIOR TO THE INTENDED TIME OF ITS ATFACHMENT, THERE HAS OCCURRED ANY
EVENT WHICH WOULD HAVE AUTOMATICALLY TERMINATED THIS INSURANCE UNDER THE PROVISIONS OF SECTIONS A, B, OR C HEREOF
HAD THIS INSURANCE ATTACHED PRIOR TO SUCH OCCURRENCE.
ALL OTHER TERMS, CONDITIONS, AND VALUATIONS REMAINING UNCHANGED
Authorized Agent
MA-9S87a (12/03)  
Page 2 of 2
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 23 of 38 Document 1-1
AMERICAN HULL INSTITUTE SYNDICATE
WAR RISK PROTECTION & INDEMNITY CLAUSES (1/18/70)
Named Insured Broadwater Marine
Endorsement Number
Vessel 3.
P olic y Symbol Policy Number Policy Period
Effective Date of Endorsement
YMY Y09164510 4/17/2014 TO 4/17/2015 4/17/2014
Issued By (Name of Insurance Company)
ACE AMERICAN INSURANCE COMPANY
Insert the policy number. The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy.
This insurance is also to cover the liability of the assured for Protection and Indemnity Risks excluded from Marine Protection and
Indemnity Policies commonly issued by stock insurance companies in the United States by the following or a substantially similar
F.C. & S. Clause:
"Notwithstanding anything to the contrary contained in this policy, no liability attaches to the company, directly or indirectly, for or
in respect of any loss, damage or expense sustained by reason of any taking of the vessel by requisition or otherwise, civil war,
revolution, rebellion, or insurrection, or civil strife arising therefrom, capture, seizure, arrest, restraint or detainment, or the
consequences thereof or of any attempt thereat; or sustained in consequence of military, naval or air action by force of arms,
including mines and torpedoes or other missiles or engines of war, whether of enemy or friendly origin, or sustained in consequence
of placing the vessel in jeopardy as an act or measure of war taken in the actual process of a military engagement, including
embarking or disembarking troops or material of war in the immediate zone of such engagement; and any such loss, damage and
expense shall be excluded from this policy without regard to whether the Assured's liability therefor is based on negligence or
otherwise, and whether before or after a declaration of war."
This insurance includes liability of the assured arising out of strikes, riots and civil commotions and for contractual repatriation expenses
of any member of the crew as a result of perils excluded by the aforesaid F.C.&S. Clause.
The Underwriters agree to accept the same percentage interest under these clauses as accepted under the Hull War Risks and Strikes
Clauses.
The liability of the Underwriters under these clauses in respect of any one accident or series of accidents arising out of the same casualty
shall be limited to the Amount Insured Hereunder.
Claims for which the Underwriters shall be liable under these clauses shall not be subject to any deduction.
This Protection and Indemnity Insurance shall terminate automatically at the same time as the insurance afforded by the Hull War Risks
and Strikes Clauses and upon the terms and conditions contained in the Automatic Termination and Cancellation provisions of said
Clauses.
Notwithstanding the provisions of Clause F, in the event of loss or shipwreèk of the vessel from any cause prior to the natural expiry
time or automatic termination of this policy, this insurance shall continue to cover the liability of the assured to the crew of the insured
vessel, subject to its terms and conditions and at an additional premium if so required by Underwriters, until the crew shall be either
discharged or landed at a port or place to which the owners or charterers are obliged to bring them.
Not withstanding any of the foregoing provisions all liabilities covered by the Second Seamen's form of policy are excluded from this
insurance.
ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED
Authorized Agent
MA-9S88(1170) Ptd. in U.S.A.
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 24 of 38 Document 1-1
Policy Change
0~
ace recreational
marine insurance
POLICY CIIANGZ
Agency Code, Name & Address  Commission
700581  
20%
BRUCE GENDELMM4 COMPANY INC
500 W. BROW N DEER ROAD
SUITE 101
MILW AUKEE, W I 53217-1627
Policy Number: YMY 109164510
Policy Term: 4/17/2014 To 4 /17/2015
Effective Date of Change: 7/10/20 14
This is your Amended Declarations Page. Please review Policy Change Summary MA3 857 for a description of change(s).
The Company Providing This Insurance
ACE AMERICAN IN3URANE COMPANY
436 Walnut Street, P.O. Box 1000
Phjla, PA 19106-3703
The Named Insured Und er Thi s Poli c y :  
1ME)
Broadwater Marine
0/0BGC
Address:
 
500 W Brown Deer Road . #101
Mi lwaukee, WI 53217
The Vessel Covered By This Policy
'INEVITABLE'
(YEAR DUIL'I) (LENGTh)  
(MAKE)  
(MODEL)  
(DOC. OR HULL IDENT. NO)
1990  163'  
Fead ahi p  
Cus tom  IMO 1002782
COVERAGE PROVIDED
AMOUNT OF
PARTS COVERACES
INSURANCE
A Property Damage
$  9,500,000
W indstorm Deductible
Commercial Towing & Assistance
$  100,000
B LiabilityCoverage
$  10,000,000
C Medical Payments
$  100,000
D Uni ns ured Boater
$  2,000,000
E L&1- ICA
$ Statutory Limits
F Trailer
$  Not Covered
U Personal Property
$  100,000
Premium Bearing Endt(s): See Attached Endorsements
DEDUCTIBLE
NEW ANNUALIZED
AMOUNT
PREMIUM
$ 47,500
$ 52,015
$ 285,000 $ 0
$ 0$ 0
$ 0 $ 7,700
$ 0$ 0
$ 0$ 0
$
$ (included in "B" if any)
$ S
$ 0$ 0.
$ 3,150
NEW TOTAL ANNUALIZED PREMIUM t  62 -
LIMITS ON USE: See
Navigation W arranty MA- 7W 74
ENDORSEMENTS: ALL21101 CC- 1E15 MA- 17971b MA- 4656b MA- 7W 74a MA- 8301g MA- 9S87a MA- 9S88
MA- 9S89a
Lay- up W arranty -
It is warranted the vessel will be laid up for part of the year, the dates are:
From noon:  
To noon:
LOSS PAYEE:  
W e will make payments for Part A: Property Damage losses to the Assured and
MA- 34186 (01/12)  
PRODUCER COPY  
1,3
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 25 of 38 Document 1-1
Policy Change Summary
ace recrealional
marine insurance
Policy Number: YMY Y09164510
Policy Term: 4/17/2014 TO 4/17/2015
Effective Date Of Change:  7/10/2014
NEW
Agency Code, Name & Address  Cormiasion
700581  20%
BRUCE GENDEIWN COMPANY INC
500 W. BROWN DEER ROAD
SUITE 101
MILWAUKEE, WI 53217-1627
This is your Policy Change Summary page. Please read carefully. It reflects recent policy change activity to your policy.
The Named Insured Under This Policy:  ( NA M E)
Broadwater Marine
do BGC
A ddress:  500 W Brown beer Road #101
Milwaukee, WI 53217
Description of Change
It is hereby understood and agreed the insured's address has been amended to:
d/O BGC
500 W Brown Deer Road, #101
Milwaukee, WI 53217
All other terms and conditions remain unchanged.
Premium Summary By Vessel
Revised premium amounts are displayed by vessel when the policy change( s) described above have resulted in an additional or return
premium.
Premium Change A mount
$
Total Premium Change A mount
 
0
M A -3857h ( 06/12)  
PRODUCER COPY  1
1
3  Page I of I
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 26 of 38 Document 1-1
: O V A, .
ace recreational
marine insurance
ELITE YACHT® POLICY
QUICK REFERENCE
AGREEMENT AND DEFINITIONS
Insuring Agreement...............................................................1
Definitions .............................................................................1
PART A: PROPERTY DAMAGE COVERAGE
Perils Insured Against...........................................................2
Valuation...............................................................................2
Overland Transport...............................................................2
Exclusions.............................................................................2
Equipment on Shore..............................................................2
Bottom Inspection Coverage ...............................................3
Deductible Amount...............................................................3
Deductible Waiver.................................................................3
Deductible Free Items...........................................................3
Loss Settlement....................................................................3
Property Subject To Depreciation ........................................3
Commercial Towing and Assistance Coverage ....................3
ADDITIONAL PROPERTY COVERAGE
Precautionary Measures ......................................................4
Protection Against Loss and Salvage .................................4
Unscheduled Fine Arts Coverage.........................................4
Firearms Coverage ...............................................................4
Mopeds, Motorbikes & Motorcycles Coverage ...................4
Passport And Proof Of Identification Coverage...................4
Living Expense After Loss .....................................................4
Loss of Charter Income Coverage........................................4
Rental Reimbursement Coverage.........................................5
PART B: LIABILITY COVERAGE
Perils Insured Against...........................................................5
Exclusions .................. ........................................................... 5
Limits of Liability ...................................................................5
Operating Other Vessels.......................................................5
Marina As Additional Insured ................................................5
Marine Environmental Damage Fines and Penalties
Coverage..............................................................................5
Search & Rescue/Emergency Services Coverage ..............5
PART C: MEDICAL PAYMENTS COVERAGE
Perils Insured Against...........................................................6
Exclusions ................ .............................................................. 6
Loss Settlement....................................................................6
Medical Payments Proof Of Loss.........................................6
Additional Requirements.......................................................6
Admission Of Liability ............................................................ 6
PART D: UNINSURED BOATER COVERAGE
Perils Insured Against...........................................................6
Exclusions.............................................................................6
Loss Settlement....................................................................6
PART E: FEDERAL LONGSHORE AND HARBOR
WORKERS COMPENSATION
INSURANCE.............................................................
MA-17971b (01/13)
PART F: VESSEL TRAILER COVERAGE
Perils Insured Against...........................................................7
Exclusions............................................................................. 7
Loss Settlement....................................................................
PART G: PERSONAL PROPERTY COVERAGE
Perils Insured Against........................................................... 7
Additional Personal Property Coverage For Paid Crew . ....... 7
Exclusions............................................................................. 7
Loss Settlement.................................................................... 7
GENERAL CONDITIONS AND EXCLUSIONS
Captain And Crew Warranty ................................................ 8
Boat Show and Demonstration ......................................... .... 8
Broadening Coverage ...................................... . .................... 8
Changes in Policy ................................................................. 8
Choice of Law I Conformity to State Law ............................ 8
Policy Period ......................................................................... 8
Policy Premium and Renewal  ............................................. 8
Cancelling the Policy ............................................................ 8
Return Premiums  ................................................................. 8
Insured and Non-Owned Vessel Assistance and Distress
Coverage............................................................................. 8
Towing Other Vessels ............................................. 8
Private Pleasure Use Only ................................................... 8
Occasional Charter ............................................................... 8
Limits On Use  ....................................................................... 9
War, Confiscation and Contamination.................................. 9
Terrorism Exclusion .............................................................. 9
Concealment, Misrepresentation or Fraud .......................... 9
Dishonest, Illegal or Intentional Acts .................................... 9
No Benefits to Others.......................................................... 9
Transfer of Interest ........................................................ ..... 9
GENERAL PROVISIONS IN THE EVENT OF LOSS
Assistance And Cooperation  ............................................... 9
Claim Or Suit Against A Covered Person............................. 9
Captain/Crew Defense ........................................................ 10
Suit Against Us  ................................................................ 10
Arbitration  ........................................................................... 10
Notice  Of Loss ......................................................................
10
Proof Of Loss  ..................................................................... 10
Payment Of Loss ................................................................ 11
Our Right To Recover......................................................... 11
Right To Salvage  ............................................................... 11
Abandonment ......................................................................
11
Other Insurance .................................................................. 11
SIGNATURES
........................................................................ 11
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 27 of 38 Document 1-1
ELITE YACHT POLICY
AGREEMENT AND DEFINITIONS
INSURING AGREEMENT
This is a legally binding insurance contract between you and us, incorporating in full the information and
representations contained upon the application form signed by you. We will provide the insurance coverage
described in this Policy, in return for payment to us of the premium due and compliance by
Covered Persons
with the provisions, conditions and warranties of this Policy.
DEFINITIONS
Throughout this Policy, you
and your refer to the named insured as shown in the Declarations Page, and we, us
and our refer to the company providing this insurance. In addition, certain words and phrases are defined as
follows:
1. Bodily
Injury means physical bodily injury, sickness or disease arising from an
Occurrence sustained by a
person, including death resulting from any of these.
2.  Constructive Total Loss
means a loss in which the cost of recovering and/or repairing the
Insured Vessel is
greater than the PART A: PROPERTY DAMAGE, AMOUNT OF INSURANCE, shown on the Declarations
Page.
3. Covered Person is defined as you, or any person or legal entity operating the
Insured Vessel(s) as shown
on the Declarations Page with your direct and prior permission. It does not include any person or legal entity
operating the Insured Vessel and acting in the capacity of employee or agent of a marina, repair yard, yacht
club, sales agency, boat service station, towing or salvage entity or other similar organization. However,
we
will cover non-contractual liability of a Covered Person for Bodily Injury or Property Damage caused by
any of these persons or organizations.
4. Dinghy/Tender is defined as,a small vessel owned by you, carried aboard the
Insured Vessel and used in
conjunction with the Insured Vessel but does not meet the definition of
Personal Watercraft.
5. Fine Arts means your paintings, etchings, drawings, tapestries, statuary and other bona fide works of art,
having historic value, artistic merit or rarity.
6. Fungi
means any type or form of fungus, including mold or mildew and any mycotoxins, spores, scents or
byproducts produced or released by Fungi.
7. Insured Vessel
is defined as the vessel(s) shown on the Declarations Page including:
Furniture, spars, sails, machinery, fittings and other equipment normally required for the operation,
navigation or maintenance of the Insured Vessel;
Dinghies/Tenders,
outboard motors and Personal Watercraft carried aboard and used in conjunction
with the Insured Vessel;
Trailers used exclusively for transporting your Dinghy/Tenders and Personal Watercraft;
Any vessel in which you acquire ownership of during the Policy Period; however,
you must notify us
within thirty (30) days of the time you acquire the vessel and pay any additional premium required; in the
event of loss within thirty (30) days of the time you acquire the vessel,
we will pay no more than its cost to
you or the PART A: PROPERTY DAMAGE, AMOUNT OF INSURANCE, whichever is less, subject to a
deductible of one (1%) percent of the hull value.
Insured
Vessel does not include moorings, cradles, aircraft, submersible and semi-submersible watercraft, or
motorized vehicles for land conveyance.
8. Navigation and Communication Equipment
means permanent systems on board the Insured Vessel that
enable the Insured Vessel
to navigate safely or communicate with other vessels or persons, but excluding
electronic engine control systems.
9. Occurrence means a loss or accident to which this insurance applies and which takes place within the Policy
Period appearing upon the Declarations Page of this Policy.
10. Permanent Full Time Captain means an individual who is the captain of the Insured Vessel and whose
occupation is exclusively limited to the command, operation and maintenance of the Insured Vessel.
11.
Personal Property is defined as clothing, personal effects, fishing gear and equipment, sports equipment,
personal electronics and computer hardware that belong to you, Resident Relatives, or your guests, while
these items are on board the Insured Vessel, or are being loaded or unloaded. Personal Property does not
MA-17971b(01/13)  
Page 1 of 11
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 28 of 38 Document 1-1
include money, jewelry, furs, traveler's checks or any other valuable papers or documents. Personal
Property does not include any items or equipment contained within the definition of Insured Vessel.
Personal Watercraft is defined as a vessel powered by internal water jet propulsion, less than thirteen (13)
feet in length which the operator sits upon or stands astride and is commonly referred to as a wave runner or
jet ski.
Property Damage means accidental, direct physical loss or damage to tangible property arising from an
Occurrence. Tangible property does not include money, stocks, bonds, deeds, mortgages, or other
instruments of a similar nature.
Pollution means Property Damage, clean up costs or containment expenses imposed by any federal, state,
or local statutes or regulation or reasonably incurred by you arising out of the sudden and accidental
discharge, spillage, leakage or emission of waste, oil, fuel, petroleum or chemical products.
Resident Relative means a person who at the time of an Occurrence is related by blood, marriage, civil
union or adoption to the named insured, spouse or domestic partner, and who resides in the named
insured's household, even if temporarily living somewhere else. Resident Relative includes any ward or
foster child who usually resides within the named insured's household.
Total Loss means the Insured Vessel shown on the Declarations Page is completely lost or destroyed.
Tropical Depressions, Tropical Storms and Hurricanes are defined as those so designated by the
National Weather Service and/or the National Hurricane Center.
Uninsured Boater and Uninsured Owner-Operator means any owner or operator of a vessel, other than an
Insured Vessel covered by this policy, who is legally responsible for an Occurrence and:
to whom no liability policy affords coverage; or
who cannot be identified, such as a hit-and-run operator.
PART A: PROPERTY DAMAGE COVERAGE
PERILS INSURED AGAINST: We will pay for Property Damage to the Insured Vessel caused by an
Occurrence as well as Protection Against Loss and Salvage charges, except as excluded in this Policy or by
endorsement.
VALUATION: The amount shown on the Declarations Page or endorsements of this Policy for PART A:
PROPERTY DAMAGE COVERAGE represents the agreed value of the Insured Vessel. This is the maximum
amount we will pay in the event of a covered loss for Property Damage to the Insured Vessel.
OVERLAND TRANSPORT: We will provide coverage for all accidental direct physical loss or damage arising
from an Occurrence while your Dinghy/Tender or Personal Watercraft is being transported overland including
loading and unloading. We will also provide coverage for all accidental direct physical loss or damage arising
from an Occurrence to any trailer owned by you but only if that trailer is used exclusively for transporting
your
Dinghy/Tender or Personal Watercraft.
EXCLUSIONS: We do not provide coverage under PART A: PROPERTY DAMAGE COVERAGE for any loss or
resulting damage from:
a. wear and tear, gradual deterioration, weathering, neglect, lack of reasonable care or due diligence in
the maintenance of the Insured Vessel;
b.  insects, animals or marine life; however, Property Damage coverage is provided for:
engines, generators, or pumps due to the attachment of zebra mussels;
collision with marine mammals;
muskrats or sea lions when their actions result in the sinking or submersion of the Insured
Vessel;
c. marring, scratching, denting;
d.  osmosis or blistering;
e.  corrosion, except electrolytic (stray current) corrosion;
f.  transportation onboard a cargo vessel or during loading or unloading;
g. Fungi, bacteria and the abating, testing for, monitoring, cleaning up, removing, containing, treating,
detoxifying, neutralizing, remediating or disposing of, or in any way responding to, or assessing the
effects of Fungi or bacteria.
EQUIPMENT ON SHORE:
We will provide coverage for all equipment contained in the definition of Insured
Vessel that is removed temporarily from the Insured Vessel for storage on shore. The Amount Of Insurance
applicable to the Insured Vessel will be reduced by the amount covered on shore.
MA-i 7971b (01/13)  
Page 2 of 11
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 29 of 38 Document 1-1
BOTTOM INSPECTION COVERAGE: In the event of grounding, stranding or striking a submerged object by
the Insured Vessel, we will pay the reasonable cost for an inspection of the bottom of the Insured Vessel within
fifteen (15) days after an Occurrence, even if no damage is found. There is no deductible for this coverage.
DEDUCTIBLE AMOUNT: We will adjust each claim separately for a covered loss to the Insured Vessel. The
amount of each adjusted claim will be automatically reduced by the Deductible Amount shown on the
Declarations Page. For deductible purposes, we will treat two (2) or more covered losses resulting from the same
Occurrence as one (1) claim.
DEDUCTIBLE WAIVER: If the amount of the adjusted claim exceeds the Deductible Amount shown on the
Declarations Page, no deductible will be applied.
DEDUCTIBLE FREE ITEMS: No deductible shall be applied in the event of a covered loss to any of the
following items:
Navigation and Communication Equipment;
Dinghy/Tender;
Personal Watercraft;
trailer used exclusively for transporting your Dinghy/Tender or Personal Watercraft.
LOSS SETTLEMENT: In the event of loss or damage to the Insured Vessel, we will pay the lowest of the
following amounts:
the PART A: PROPERTY DAMAGE COVERAGE, AMOUNT OF INSURANCE, shown on the
Declarations Page; or
the cost to repair; or
the cost of replacement with no deduction for depreciation, except as specified in the Property Subject to
Depreciation provision of this coverage part.
We will pay the PART A: PROPERTY DAMAGE COVERAGE, AMOUNT OF INSURANCE, shown on the
Declarations Page, only if the Insured Vessel:
is a Total Loss; or
a Constructive Total Loss.
The cost of repairs shall be determined by repair yards, equipment repairers or surveyors agreeable to us. The
amount we will pay for a Total Loss or Constructive Total Loss shall be reduced by the amount paid for repairs
of prior covered damage not completed at the time of the Total Loss or Constructive Total Loss.
PROPERTY SUBJECT TO DEPRECIATION: In the event of loss or damage to your Insured Vessel's:
sails, dodgers, plastic or canvas coverings inclusive of all-weather bridge and cockpit enclosures which
are over five (5) years old;
trailers which are over five (5) years old and used exclusively for towing your Dinghy/Tender or
Personal Watercraft; or
outboard motors or outdrive units which are over seven (7) years old.
We will pay the lowest of:
the cost to repair;
the cost of replacement; or
the actual cash value at the time of loss, which is defined herein as replacement cost less depreciation.
However, with respect to the items specified above, in no event shall the depreciated value be less than
20% of the replacement cost of that item.
COMMERCIAL TOWING AND ASSISTANCE COVERAGE: We will reimburse you for the reasonable
costs you incur resulting from the following services to the Insured Vessel or boat trailer covered by this Policy if
voluntary help is not available and you must obtain commercial assistance:
towing to the nearest place where necessary repairs can be made;
delivery of fuel, oil, parts or loaned battery (excluding the cost of these items themselves);
emergency labor at the site of disablement.
The amount we reimburse you shall not exceed the Commercial Towing and Assistance, Amount Of Insurance,
shown on the Declarations Page. The Commercial Towing and Assistance Coverage provided herein shall be
excess over all other valid or collectible towing assistance benefits applicable to the Insured Vessel. To the
extent this provision conflicts with the Other Insurance provision under GENERAL PROVISIONS IN THE EVENT
OF LOSS, the language herein shall apply to this Commercial Towing and Assistance Coverage.
The Commercial Towing and Assistance Coverage provided herein is not subject to the PART A: PROPERTY
DAMAGE COVERAGE, DEDUCTIBLE AMOUNT.
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I II
ADDITIONAL PROPERTY COVERAGE:
PRECAUTIONARY MEASURES: We will pay up to $5,000 for reasonable expenses incurred by you to haul
out or move the Insured Vessel to a place of safety prior to a covered loss when the Insured Vessel is in
imminent danger of fire, Tropical Depressions, Tropical Storms, Hurricanes, storm surges or tsunamis. This
coverage is not subject to a deductible.
PROTECTION AGAINST LOSS and SALVAGE: It shall be your responsibility to use all lawful and
reasonable means to recover or protect the Insured Vessel from further loss or damage. We will pay the
reasonable cost of such protection in addition to any other payments for loss under PART A: PROPERTY
DAMAGE COVERAGE of this Policy. The amount payable under this provision shall not exceed the PART A:
PROPERTY DAMAGE COVERAGE, AMOUNT OF INSURANCE, shown on the Declarations Page, nor reduce
that limit. All coverage provided under this Protection Against Loss and Salvage provision will terminate
immediately after payment by us of a Total Loss or Constructive Total Loss. This coverage is not subject to a
deductible.
UNSCHEDULED FINE ARTS COVERAGE: We will provide up to $100,000 per Occurrence in the event of
a covered loss to unscheduled Fine Arts. In case of loss to a pair or a set, we agree to pay you the full amount
of the pair/set and you agree to surrender to us the remaining article(s) of the pair/set. This coverage is not
subject to a deductible.
We will not cover damage to Fine Arts caused by: (1) repair, restoration or retouching of the item; (2) the
breaking of statues, marble, glass, china, porcelains and similar fragile articles. However, breakage will be
covered if caused by fire, lightning, aircraft, theft or attempted theft, wind, earthquake, flood, explosion, vandalism
or other malicious damage other than by a Covered Person, grounding, or collision between the Insured Vessel
and another vessel or structure.
It is agreed that the limit applicable to the unscheduled Fine Arts is included and is part of the PART A:
PROPERTY DAMAGE COVERAGE, AMOUNT OF INSURANCE, shown on the Declarations Page.
FIREARMS COVERAGE: We will provide up to $5,000 per Occurrence for the theft of firearms from on board
the Insured Vessel which are owned by a Covered Person. This coverage does not apply if the firearms were
illegally obtained by a Covered Person, were used in an illegal activity or were confiscated by a government unit.
This coverage is not subject to a deductible.
MOPEDS, MOTORBIKES & MOTORCYCLES COVERAGE: We will provide up to $100,000 per
Occurrence for physical damage arising from an Occurrence to any moped, motorbike or motorcycle only when
damaged while on board the Insured Vessel. This coverage is not subject to a deductible.
PASSPORT AND PROOF OF IDENTIFICATION COVERAGE: We will provide up to $2,500 per
Occurrence for expenses that a Covered Person incurs to replace a lost or stolen passport and/or proof of
identification. This coverage is not subject to a deductible.
LIVING EXPENSE AFTER LOSS: We will reimburse you up to $5,000 per Occurrence for reasonable living
expenses incurred by you or your paid crew who are attending to the Insured Vessel following an Occurrence
in order to minimize loss or damage while the Insured Vessel is at the loss site. A reimbursement by us for
Living Expense After Loss will be in addition to any other payments we make for losses covered by this Policy.
This coverage is not subject to a deductible.
LOSS OF CHARTER INCOME COVERAGE: In the event a covered loss under PART A: PROPERTY
DAMAGE COVERAGE which subsequently prevents the Insured Vessel from executing a charter agreement we
shall pay no more than $100,000, in the aggregate during any one (1) Policy Period for Loss of Charter Income.
However, coverage under Loss of Charter Income shall not commence until seven (7) days after a covered loss to
the Insured Vessel is reported to us.
We will pay no more than the actual charter fees under contract and for which deposits have been received prior
to the date of the covered loss to the Insured Vessel, less any expenses that would have been incurred during
the charter period. If we have made payment for loss, and there is a recovery as a result of that loss, we have
the right to that recovery to the extent of our payment. Payments for loss of charter income will be in addition to
any other payments we make for losses covered by this Policy.
Should we make any payment for Loss of Charter Income Coverage there shall be no payment by us arising out
of the same Occurrence for Rental Reimbursement Coverage. This coverage is in addition to amounts we will
pay under PART A: PROPERTY DAMAGE COVERAGE however, this coverage will not apply if the Insured
Vessel is a Total Loss or Constructive Total Loss. This coverage shall be deemed excess over all other valid
and collectabte insurance.
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RENTAL REIMBURSEMENT COVERAGE:
In the event that a covered loss under PART A: PROPERTY
DAMAGE COVERAGE renders the Insured Vessel unusable for a period of time in excess of seventy-two (72)
hours, we will pay up to $150,000, in the aggregate during any one (1) Policy Period, for the cost of chartering
another vessel for your use while the Insured Vessel is being repaired.
Should we
make any payment for Rental Reimbursement Coverage there shall be no payment by us arising out
of the same Occurrence for Loss of Charter Income Coverage. This coverage is in addition to amounts we will
pay under PART A: PROPERTY DAMAGE COVERAGE; however, this coverage will not apply if the Insured
Vessel is a Total Loss or Constructive Total Loss.
PART B: LIABILITY COVERAGE
PERILS INSURED AGAINST: We will pay sums that a Covered Person becomes legally obligated to pay as
a result of the ownership, operation or maintenance of the Insured Vessel because of:
Bodily Injury or loss of life;
Property Damage;
Pollution;
attempted or actual raising, removal or destruction of the wreck of the Insured Vessel;
failure to raise, remove or destroy the wreck of the Insured Vessel;
liability to paid crew as defined in the Jones Act or under General Maritime Law.
EXCLUSIONS: We do not provide coverage under PART B: LIABILITY COVERAGE for:
liability of other Covered Persons to you or any Resident Relative;
your liability to any Resident Relative;
liability assumed by a Covered Person under any contract or agreement;
fines or other penalties that any government unit requires you to pay, except as provided by MARINE
ENVIRONMENTAL DAMAGE FINES AND PENALTIES COVERAGE below;
punitive damages; and
liability arising from the use of motorized vehicles for land conveyance, aircraft, submersible and semi-
submersible watercraft.
LIMITS OF LIABILITY:
We will pay no more than the PART B: LIABILITY COVERAGE, AMOUNT OF
INSURANCE shown on the Declarations Page arising out of any one (1) Occurrence, regardless of the number
of Covered Persons involved, claims made or suits brought; or persons or organizations making claims or
bringing suits.
OPERATING OTHER VESSELS:
The PART B: LIABILITY COVERAGE, AMOUNT OF INSURANCE, shown
on the Declarations Page includes operating another vessel with the permission of its owner. If there is any other
insurance against a loss covered by this provision, we will provide coverage only as excess over such other
insurance. To the extent this provision conflicts with the Other Insurance provision under GENERAL
PROVISIONS IN THE EVENT OF LOSS, the language herein shall apply to this Operating Other Vessels clause.
We do not provide any coverage while you operate other vessels if:
the vessel is owned wholly or in part by you; or
the vessel is being used for purposes other than private pleasure use; or
the vessel is furnished for your regular use; or
the vessel length exceeds that of the Insured Vessel by at least five (5) feet; or
the vessel is designed for, or capable of, speeds in excess of fifty-five (55) miles per hour; or
the vessel is a Personal Watercraft.
MARINA AS ADDITIONAL INSURED:
The yacht club, marina or other similar facility where the Insured
Vessel(s) is kept is added as an additional insured on this Policy, but only as their interest may appear in the
Insured Vessel and for the liability arising out of the negligence of the named insured, as defined in the Policy.
The additional insured is named as such for the purpose of Bodily Injury and Property Damage liability in
connection with the named insured's ownership, maintenance and operation of the Insured Vessel covered by
this Policy.
MARINE ENVIRONMENTAL DAMAGE FINES AND PENALTIES COVERAGE: We
will pay up to
$50,000 per Occurrence for those fines or other penalties levied or assessed by a governmental unit, resulting
from physical injury, alteration or destruction of a coastal or marine habitat arising from physical contact with the
Insured Vessel.
Any payment hereunder shall be in addition to the PART B: LIABILITY COVERAGE, AMOUNT
OF INSURANCE, shown on the Declarations Page.
SEARCH & RESCUE AND EMERGENCY SERVICES COVERAGE:
We will pay up to $25,000 per
Occurrence for the reasonable expenses you incur from a governmental unit for any search and rescue
operation in the event any person is lost at sea from the Insured Vessel, and for emergency aid or assistance to
MA-17971b (01/13)  
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Case 2:15-cv-01193-NJ Filed 10/08/15 Page 32 of 38 Document 1-1
the Insured Vessel. Any payment hereunder shall be in addition to the PART B: LIABILITY COVERAGE,
AMOUNT OF INSURANCE, shown on the Declarations Page.
PART C: MEDICAL PAYMENTS COVERAGE
PERILS INSURED AGAINST: We will pay for reasonable medical, ambulance, hospital, professional nursing,
repatriation and funeral costs that become necessary due to Bodily Injury to persons injured while in, upon,
boarding, leaving or towed behind the Insured Vessel. We will pay only for those costs incurred within three (3)
years of the date of the Occurrence giving rise to coverage hereunder.
EXCLUSIONS: We do not provide coverage under PART C: MEDICAL PAYMENTS COVERAGE for:
employee(s) of a Covered Person who is injured while in the course of employment or while using,
maintaining or repairing the Insured Vessel;
any obligation or payment assumed by a Covered Person under contract or agreement;
anyone who is injured while the Insured Vessel is being conveyed, hauled out or launched;
anyone to or for whom benefits are payable under any state or federal remedy, law, statute or
compensation law or act.
LOSS SETTLEMENT: We will pay no more than the PART C: MEDICAL PAYMENTS COVERAGE, AMOUNT
OF INSURANCE, shown on the Declarations Page for all covered costs of each person injured as a result of any
Occurrence.
MEDICAL PAYMENTS PROOF OF LOSS: A written, sworn proof of loss must be filed with us by any person
seeking payment by us under PART C: MEDICAL PAYMENTS COVERAGE, or by someone on their behalf. This
proof of loss must include:
the name and address of each person and organization performing covered services;
the nature, extent and dates of these services; and
itemized charges and any sums already paid.
This proof of loss must be filed:
as soon as reasonably possible after completion of services;
as soon as reasonably possible after the cOst of services being provided equals or exceeds the PART C:
MEDICAL PAYMENTS COVERAGE, AMOUNT OF INSURANCE, shown on the Declarations Page; or
within one (1) year of the date of the Occurrence;
whichever of the above occurs first.
ADDITIONAL REQUIREMENTS: Each person seeking payment by us under PART C: MEDICAL
PAYMENTS COVERAGE must:
submit to physical examinations by physicians selected by us when and as often as we reasonably
require; we will pay for the cost of the examinations; and
provide us with written authorization for release to us of copies of pertinent medical reports and records.
ADMISSION OF LIABILITY: Any payment made under PART C: MEDICAL PAYMENTS COVERAGE is not
an admission of liability by a Covered Person or us.
PART D: UNINSURED BOATER COVERAGE
PERILS INSURED AGAINST: We will pay for Bodily Injury received on board the Insured Vessel, which a
Covered Person is legally entitled to recover from an Uninsured Boater and Uninsured Owner-Operator.
EXCLUSIONS: We do not provide coverage under PART D: UNINSURED BOATER COVERAGE:
for claims settled without our written consent;
if the uninsured vessel is owned by a government agency or unit;
for vessels owned by you or furnished for your regular use, or the use of a Resident Relative or any
Covered Person;
for any Covered Person using a vessel without your permission;
where no evidence of physical contact exists between the Insured Vessel and an uninsured or
unidentified vessel.
LOSS SETTLEMENT: The PART D: UNINSURED BOATER COVERAGE, AMOUNT OF INSURANCE, shown
on the Declarations Page is the most we will pay under PART D, regardless of the number of Covered Persons,
claims made or vessels involved in any Occurrence. This coverage will not apply directly or indirectly to the
benefit of any Covered Person under any state or federal compensation law or act. Payment made for this
coverage to or for a Covered Person will reduce the amount that person is entitled to recover from PART B:
LIABILITY COVERAGE and PART C: MEDICAL PAYMENTS COVERAGE of this Policy.
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PART E: FEDERAL LONGSHORE & HARBOR WORKERS' COMPENSATION INSURANCE
When insurance is provided under PART B: LIABILITY COVERAGE, we will also provide coverage under this
part. We will provide coverage for liability arising from an Occurrence which you, as owner of the Insured
Vessel, incur because of an obligation under §904 of The Longshore & Harbor Workers' Compensation Act, 33
U.S.C.901-950, as amended.
PART F: VESSEL TRAILER COVERAGE
PERILS INSURED AGAINST: We will pay for Property Damage to any trailer listed on the Declarations Page
arising from an Occurrence, except as excluded in this Policy or by endorsement. This coverage is not subject to
a deductible.
EXCLUSIONS: We do not provide coverage for accidental, direct physical loss or damage to any trailer arising
from wear and tear, gradual deterioration or manufacturer's defects.
LOSS SETTLEMENT: In the event of loss or damage to the vessel trailer, we will pay the lowest of the
following amounts:
the PART F: VESSEL TRAILER COVERAGE, AMOUNT OF INSURANCE, shown on the Declarations
Page;
the cost to repair;
the cost of replacement; or
the actual cash value at the time of loss, which is defined herein as replacement cost less depreciation.
PART G: PERSONAL PROPERTY COVERAGE
PERILS INSURED AGAINST: We will provide coverage for direct physical loss or damage to your Personal
Property, arising from an Occurrence, except as specifically excluded in this Policy. This coverage is not
subject to a deductible.
ADDITIONAL PERSONAL PROPERTY COVERAGE FOR PAID CREW: With respect to paid crew
members we will provide coverage for direct physical loss or damage to the Personal Property of paid crew,
arising from an Occurrence. The most we will pay for loss or damage to the Personal Property of paid crew is
an amount not to exceed $25,000 per paid crew member for any one (1) Occurrence. Payments we make under
ADDITIONAL PERSONAL PROPERTY FOR PAID CREW are in addition to any other payments we make for a
covered Occurrence under PART G: PERSONAL PROPERTY COVERAGE. This coverage is not subject to a
deductible.
EXCLUSIONS: We do not provide coverage under PART G: PERSONAL PROPERTY COVERAGE against
loss or resulting damage from:
wear and tear, mechanical breakdown, gradual deterioration, weathering, insects, mold, animals, marine
life, ice, freezing or extremes of temperature;
marring, scratching or denting; or
osmosis, blistering, corrosion, except electrolytic (stray current) corrosion; or
manufacturing defects or manufacturer's defects in design.
LOSS SETTLEMENT: In the event of loss or damage to your Personal Property, we will pay the lowest of the
following amounts:
the PART G: PERSONAL PROPERTY COVERAGE, AMOUNT OF INSURANCE, shown on the
Declarations Page;
the cost to repair;
the cost of replacement with no deduction for depreciation.
In the event of loss or damage to Personal Property of paid crew, we will pay the lowest of the following
amounts:
$25,000 per paid crew member;
the cost to repair;
C.  the cost of replacement with no deduction for depreciation.
We will adjust each claim separately for covered loss to Personal Property. We will treat two (2) or more
covered losses resulting from the same Occurrence as one (1) claim.
The Other Insurance paragraph under GENERAL PROVISIONS IN THE EVENT OF LOSS does not apply to
PART G: PERSONAL PROPERTY COVERAGE.
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GENERAL CONDITIONS AND EXCLUSIONS
CAPTAIN AND CREW WARRANTY: It is warranted that you employ a Permanent Full Time Captain. It is
also warranted that if there is any change of captain, we must be notified immediately and approve of the change
in writing. It is also warranted that if there is any change of first mate and/or engineer personnel (to the extent
applicable), we must be notified within seven (7) days and approve of the change in writing. A breach of this
warranty shall void coverage for any claim, loss, damage, expense, cost or liability covered by this Policy.
BOAT SHOW AND DEMONSTRATION: We provide coverage when the Insured Vessel is exhibited at a
boat show or when the Insured Vessel is being navigated by your Permanent Full Time Captain for
demonstration purposes.
BROADENING COVERAGE: If we make any revision to this Policy form during the Policy Period which
broadens the coverage without additional premium, the broadened coverage will apply as of the effective date of
such revision.
CHANGES IN POLICY: This Policy contains all of the agreements between you and us. Its terms may not be
changed or waived except by an endorsement issued by us. If a change requires a premium adjustment, we will
adjust the premium as of the effective date of the Policy change.
CHOICE OF LAW I CONFORMITY TO STATE LAW: This Policy shall be construed in accordance with the
General Maritime Law or Admiralty Rule. If no General Maritime Law or Admiralty Rule applies, the law of the
State appearing in your address as contained upon the Declarations Page will apply without regard to the conflict
of laws provisions thereof. Any provision of this Policy that would be invalid under applicable law shall be
amended to the extent necessary for such provision to be in conformance with such law.
POLICY PERIOD: This Policy applies only in the event of an Occurrence which takes place during the Policy
Period, shown on the Declarations Page.
POLICY PREMIUM AND RENEWAL: The premium shown on the Declarations, Page is the initial premium for
this Policy. If we agree to renew or continue the Policy, then at the time of each renewal or continuation, on the
Policy anniversary date, the premium for the renewal or continuation will be computed by us according to our
premium rules, forms and guidelines then in use.
CANCELLING THE POLICY: You may cancel this Policy by returning it to us or our authorized agent, or by
advising us or our authorized agent in writing, stating the future date you want it to be cancelled. We may cancel
this Policy by delivering or mailing to you at your last address shown on our records, written notice stating when,
not less than fifteen (15) days after mailing, the Policy will be cancelled. Delivery or mailing of this notice to you
shall be sufficient proof that notice of cancellation was given. The date of the cancellation stated in the notice shall
become the end of the Policy Period.
Any Loss Payee listed upon the Declarations Page or by endorsement shall also be provided any cancellation
notice required to be sent by us.
RETURN PREMIUMS: If this Policy is cancelled, you may be entitled to a premium refund. Return premiums
will be computed on a pro-rata basis. Any return premium will be paid to you as soon as possible after the
cancellation. No premiums will be returned to you if we have paid you for a Total Loss or Constructive Total
Loss of the Insured Vessel under this Policy.
INSURED AND NON-OWNED VESSEL ASSISTANCE AND DISTRESS COVERAGE: We will provide
coverage while you are attempting to aid other non-owned vessels in distress, provided there is no consideration
for your services. In addition, where no coverage exists for loss or damage to a non-owned vessel under PART
B: LIABILITY COVERAGE, of this Policy, and a non-owned vessel sustains loss or damage in the course of or
attempting to aid your Insured Vessel while in distress, we agree to pay up to $50,000 per Occurrence,
provided there is no consideration for the assistance or attempted assistance from the non-owned vessel.
TOWING OTHER VESSELS: We do not provide coverage for loss or damage resulting from the Insured
Vessel towing any other vessel. However, we will provide coverage while you are towing other non-owned
vessels in distress, provided there is no consideration for your services.
PRIVATE PLEASURE USE: This Policy only provides coverage while the Insured Vessel is used for private
pleasure purposes. However, this limitation on use does not apply while you are operating or using the Insured
Vessel to entertain business associates or clients or other similar types of use wherein no monetary or other
directly related remuneration is received by you in relation to operation or use of the Insured Vessel.
OCCASIONAL CHARTER: We do not provide any coverage while the Insured Vessel is used to carry
property for a fee or for any other commercial use. However, this limitation on use does not apply while the
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Insured Vessel is being chartered for private pleasure purposes. The person or entity chartering the Insured
Vessel is included as a Covered Person.
LIMITS ON USE: Unless we have provided you with prior written authorization to deviate from the navigation
limit stated on the Declarations Page, no coverage exists under this Policy for any claim, suit, loss, damage,
expense, liability or Occurrence where the Insured Vessel is navigated, afloat, operated, used, stored, ashore,
on land, in transit, transported or otherwise located outside the navigation limit specified on the Declarations
Page.
However, if the Navigation Warranty included in this Policy, or the Lay-Up Warranty shown on the Declarations
Page, is breached due to matters beyond your or a Covered Person's control, the Policy will remain in effect, but
only if you give us written notice of the breach within ten (10) days after the breach and pay any additional
premiums due for this extension of coverage.
WAR, CONFISCATION AND CONTAMINATION: We do not provide any coverage for loss, damage, liability
or expense due to:
war, including undeclared war, civil war, insurrection, rebellion, revolution, warlike act by military force or
military personnel, destruction or seizure for military purpose and including any consequence of these;
the lawful or unlawful capture, seizure, confiscation, requisition or detainment of the Insured Vessel by a
civil or military authority or an attempt at any of these;
radioactive, chemical, biological, bio-chemical or electromagnetic contamination.
TERRORISM EXCLUSION: We do not provide coverage for any loss, damage or expense from a certified act
of terrorism. For the purpose of this clause, "certified act of terrorism" is defined as any act of terrorism as defined
in the U.S. Federal Terrorism Risk Insurance Act of 2002, as amended by the Terrorism Risk Insurance Program
Reauthorization Act of 2007 and its amendments.
CONCEALMENT, MISREPRESENTATION OR FRAUD: All coverage provided by us will be voided from
the beginning of the Policy Period in any case of fraud by you. It is also void if you intentionally conceal or
misrepresent any material fact or circumstance relating to this contract of insurance, or the application for such
insurance, whether before or after a loss.
DISHONEST, ILLEGAL OR INTENTIONAL ACTS: We do not pay for loss or damage caused by the
dishonest, illegal or intentional acts of any Covered Person or any person to whom the Insured Vessel is
entrusted, regardless of whether or not such person is convicted of such an act by a criminal court. However, we
do provide coverage for you as long as you or a Resident Relative were not directly or indirectly involved in the
dishonest, illegal or intentional act.
NO BENEFIT TO OTHERS: No person or organization, which has custody of the Insured Vessel and is to be
paid for services, will benefit from this insurance.
TRANSFER OF INTEREST: All coverage provided by us will terminate upon the sale, assignment, transfer or
pledge of the Insured Vessel or of this Policy unless prior written consent has been obtained from us.
GENERAL PROVISIONS IN THE EVENT OF LOSS
ASSISTANCE AND COOPERATION: Any Covered Person making a claim must:
cooperate with us in the investigation, settlement or defense of any claim or suit under this Policy;
assist us in the enforcement of any right of contribution or indemnity against any person or organization
which may be liable to any Covered Person;
allow us to inspect and appraise all damaged property, not stolen or otherwise unrecoverable, before it is
repaired or disposed of;
submit to examinations under oath as often as requested by us.
sign a written authorization permitting us to obtain medical files and other pertinent records;
submit at our expense and as often as we reasonably require, to physical examinations by physicians we
select and at the time and place we select;
not assume any obligation or admit any fault or liability that you or we may be liable for without first
obtaining our written consent; and
not incur any expenses that we may be liable for without first obtaining our written consent; the only
expenses that may be incurred without obtaining our written consent are those covered under PART C:
MEDICAL PAYMENTS COVERAGE or as described in PART A: PROPERTY DAMAGE COVERAGE,
Protection Against Loss and Salvage.
CLAIM OR SUIT AGAINST A COVERED PERSON: If a claim is made or suit is brought against a Covered
Person for liability that may be covered under this Policy, you must immediately notify us and send us every
demand, notice, summons or other legal papers received by you or your representative. We will have the option
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of naming attorneys to represent the Covered Person. Payments by us for the cost of legal defense of the
Covered Person will be in addition to payments we make under PART B: LIABILITY COVERAGE for liability
claims against the Covered Person. This coverage does not increase our per Occurrence limit of liability and
we will pay no more than the PART B: LIABILITY COVERAGE, AMOUNT OF INSURANCE, shown on the
Declarations Page. Once the PART B: LIABILITY COVERAGE, AMOUNT OF INSURANCE has been exhausted
by payment for liability by us, we shall no longer pay defense costs for any claim or suit against a Covered
Person.
CAPTAIN/CREW DEFENSE: We will defend the captain and paid crew as co-defendants with you, if
necessary, for any suit brought against you, the Insured Vessel and/or paid captain/crew for liability arising out
of the operation of the Insured Vessel that may be covered under this Policy. This coverage does not increase
our per Occurrence limit of liability and we will pay no more than the PART B: LIABILITY COVERAGE,
AMOUNT OF INSURANCE, shown on the Declarations Page. Once the PART B: LIABILITY COVERAGE,
AMOUNT OF INSURANCE has been exhausted by payment for liability by us, we shall no longer pay defense
costs for any claim or suit against the captain and paid crew.
SUIT AGAINST US: You may not bring a suit against us unless you have complied with all terms and
conditions of this Policy. In addition:
with respect to any claim or loss to the Insured Vessel, any suit against us must commence within one
(1) year of the date of loss or damage;
with respect to any other claim for loss, no suit may be brought against us until the amount of the
Covered Person's obligation to pay has been determined by final judgments after trial or by written
agreement signed by you, us and the claimant; any such legal action against us must commence within
one (1) year of the date of judgment or written agreement;
no one shall have any right to join us as a party to any action against a Covered Person;
if any time limitations of this Policy are prohibited or invalid under applicable law, then legal action against
us must commence within the shortest limitation of time permitted by applicable law.
ARBITRATION: Any controversy or claim, whether based on contract, tort, statute or other legal or equitable
theory (including but not limited to any claim of fraud, misrepresentation or fraudulent inducement, arising out of
or related to this Policy, the interpretation, enforcement, or breach thereof, or the handling of any claim involving
this Policy, shall be referred to and settled by arbitration in accordance with the then current CPR Institute for
Dispute Resolution Rules for Non-Administered Arbitration and this provision. The arbitration shall be governed by
the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, implemented at 9 U.S.C. §§ 201-
208, or if said Convention shall be held not to be applicable, by the United States Arbitration Act, 9 U.S.C. §§ 1-
16, to the exclusion of any provision of state or other law inconsistent therewith or which would produce a different
result, and judgment upon the award rendered by the arbitrator may be entered by any court having jurisdiction.
The arbitration shall be held in the State appearing in your address as contained upon the Declarations Page and
in accordance with the following procedure:
You and we will agree on a single arbitrator to decide the dispute, whose fee will be paid fifty percent
(50%) by you and us;
If you and we are unable to agree on a single arbitrator, you and we will each appoint an arbitrator and
those two (2) arbitrators will appoint a third arbitrator. The three (3) arbitrators will decide the dispute by a
majority vote. You will pay the fee of the arbitrator that you appoint. We will pay the fee of the arbitrator
that we appoint. You and we will each pay fifty percent (50%) of the fee charged by the third arbitrator.
You and we will each pay fifty percent (50%) of the fee charged by the American Arbitration Association
to coordinate the arbitration.
The request for arbitration must be filed within one (1) year of the date of loss or damage; and
We may arbitrate the amount of your loss or damage without waiving our right to determine coverage or
a lack of coverage for the loss.
NOTICE OF LOSS: You must report in writing to us, or our authorized agent, as soon as possible after an
Occurrence that may be covered under this Policy. This notice should state when, where and how the event
occurred, and should include the names and addresses of any witnesses. You are also required to notify the
police and file a police report as soon as you are aware that your property has been stolen, vandalized or there is
a mysterious disappearance. If you do not provide the notice to us as required by this section as soon as
possible, any claim under this Policy will be voided.
PROOF OF LOSS: You must file with us or our authorized agent, as soon as possible after our written
request, a detailed proof-of-loss signed and sworn to by you setting forth to the best of your knowledge, the facts
of the loss. We may also require you to submit to examinations under oath. See PART C: MEDICAL PAYMENTS
COVERAGE for special proof-of-loss requirements for medical payments claims.
MA-17971b (01/13)  Page 10 of 11
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 37 of 38 Document 1-1
PAYMENT OF LOSS: We will pay for any claim of covered Property Damage you incur under this Policy to
the named insured and any loss payee, as shown on the Declarations Page, within thirty (30) days after:
receiving a signed sworn proof of loss statement or masters protest, receiving a release of liability; and
proof of your interest in the Insured Vessel is given to us; and
reaching an agreement with you; or
the entry of final judgment; or
the filing of an arbitration award with us.
However:
we will not pay a loss that has been paid by others;
should a covered loss to the Insured Vessel result in a Total Loss or Constructive Total Loss, the
Policy premium shall be paid in full prior to the final claim payment; and
the loss payee's rights are no greater than those of the named insured under this contract.
OUR RIGHT TO RECOVER: If any person or organization to or for whom we make payment under this Policy
has rights to recover damages from another, those rights are transferred to us. That person or organization must
do everything necessary to secure our rights and must do nothing to impair them. Any recovery made by us shall
be first applied up to the amount we paid and then the remainder, if any, to you and we shall be entitled to said
payment, recovery, reimbursement or subrogation regardless of whether the total amount of the recovery
received by you on account of an Occurrence covered by this Policy is less than the actual loss or damaged
sustained by you.
We will not waive our rights to recover against any person or entity for their liability for any loss to the Insured
Vessel except a yacht club, marina or similar facility for the purpose of storage or slip rental which requires waiver
of subrogation by written contract entered into by you prior to the date of an Occurrence but only to the extent of
said waiver.
RIGHT TO SALVAGE: If we pay a Total Loss or a Constructive Total Loss of the Insured Vessel, we may,
but are not obligated to, take possession of the remains or its proceeds. If we take possession of the Insured
Vessel, you agree to transfer title of that property to us or any persons or party designated by us.
ABANDONMENT: If we take any steps to protect damaged property, this does not mean we are accepting an
abandonment of the property. And, if you take steps to protect damaged property, this does not mean you are
waiving any rights you have to abandon the property.
OTHER INSURANCE: If any Covered Person has any other valid and collectible insurance against a Property
Damage loss covered under this Policy, we will not pay for any greater proportion of the loss than our applicable
Amount Of Insurance shown on the Declarations Page bears to the total Amount Of Insurance covering the loss.
With respect to a liability, medical payments and/or Uninsured Boater loss, any insurance provided by this
contract shall be deemed excess over all other valid and collectible insurance.
SIGNATURES
The only signatures applicable to this Policy are those representing the company named on the
Declarations Page.
CARMINE A. GIGANTI, Secretary  
5:51~0 .. L LUPIC A, President
Insurance Company of North America
 
ACE American Insurance Company
Philadelphia, Pennsylvania
 
Philadelphia, Pennsylvania
Indemnity Insurance Company of North America
 
ACE Fire Underwriters Insurance Company
Philadelphia, Pennsylvania
 
Philadelphia, Pennsylvania
This is not a complete and valid insurance Policy
without an accompanying Declarations Page.
ace recreational
www.acemarineinsurance.com
 
marine insurance
T
MA-17971b (01/13)  Page 11 of 11
Case 2:15-cv-01193-NJ Filed 10/08/15 Page 38 of 38 Document 1-1

Published under a Creative Commons License By attribution, non-commercial
date: 
Thu, 2015-10-08
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Voorhees et al v. ACE American Insurance Company complaint.pdf2.08 MB

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