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CNA CNA PARAMOUNT Policy Holder Notice - Notice of Terrorism Coverage - Disclosure of Premium IMPORTANT INFORMATION NOTICE — OFFER OF TERRORISM COVERAGE NOTICE — DISCLOSURE OF PREMIUM Solely with respect to the following coverage parts: Business Property General Liability Employee Benefits Liability Stop Gap Liability THIS NOTICE DOES NOT FORM A PART OF THE POLICY, GRANT ANY COVERAGE OR CHANGE THE TERMS AND CONDITIONS OF ANY COVERAGE UNDER THE POLICY. The Named Insured is hereby notified that under the Terrorism Risk Insurance Act, as extended and reauthorized ("Act"), the Named Insured has a right to purchase insurance coverage of losses arising out of acts of terrorism, as defined in Section 102(1) of the Act, subject to all applicable policy provisions. The Terrorism Risk Insurance Act established a federal program within the Department of the Treasury, under which the federal government shares, with the insurance industry, the risk of loss from future terrorist attacks. This Notice is designed to alert the Named Insured to coverage restrictions and to certain terrorism provisions in the N policy. If there is any conflict between this Notice and the policy (including its endorsements), the provisions of the policy N (including its endorsements) apply. N r CHANGE IN THE DEFINITION OF A CERTIFIED ACT OF TERRORISM N The Act applies when the Secretary of the Treasury certifies that an event meets the definition of an act of terrorism. N Originally, the Act provided that to be certified, an act of terrorism must cause losses of at least five million dollars and must have been committed by an individual or individuals acting on behalf of any foreign person or foreign interest to coerce the government or population of the United States. However, the 2007 re -authorization of the Act removed the requirement that the act of terrorism must be committed by or on behalf of a foreign interest, and now certified acts of terrorism may encompass, for example, a terrorist act committed against the United States government by a United States citizen, when the act is determined by the federal government to be "a certified act of terrorism." In accordance with the Act, the Insurer is required to offer the Named Insured the ability to purchase coverage for losses resulting from an act of terrorism that is certified under the federal program. The other provisions of this policy, including nuclear, war or military action exclusions, will still apply to such an act. DISCLOSURE OF FEDERAL PARTICIPATION IN PAYMENT OF TERRORISM LOSSES The Department of the Treasury will pay a share of terrorism losses insured under the federal program. Beginning in 2020, the federal share equals 80% of that portion of the amount of such insured losses that exceeds the applicable insurer retention. LIMITATION ON PAYMENT OF TERRORISM LOSSES oRaN IZAMwaganadDivisian REVIEWED & APPROVED SY.- } z of p t" PZ. W&Wd CNA62820XX 1-21 Copyright CNA All Rights Reserved. ` Risk Management Analyst