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Schedule until the expiration date shown in the Schedule, or when the lessor or his or her agent <br /> takes possession of the "leased auto," whichever occurs first. <br /> SECTION IV - BUSINESS AUTO CONDITIONS, A.4. Loss Payment - Physical Damage <br /> Coverages is amended by adding the following: <br /> a. We will pay, as interest may appear, you and the lessor for "loss" to a "leased auto." <br /> b. The insurance covers the interest of the lessor unless the "loss" results from fraudulent acts or <br /> omissions on your part. <br /> c. If we make any payment to the lessor, we will obtain his or her rights against any other party. <br /> SECTION V - DEFINITIONS is amended by adding the following definition: <br /> "Leased auto" means any "auto" leased or rented to you including any substitute, replacement or <br /> extra "auto" needed to meet seasonal or other needs, under a leasing or rental agreement that <br /> requires you to provide direct primary insurance for the lessor. <br /> D. OWNED SUBSIDIARIES AND NEWLY ACQUIRED OR FORMED ORGANIZATIONS <br /> SECTION II - COVERED AUTOS LIABILITY COVERAGE, A. 1. Who is An Insured is amended by <br /> adding the following: <br /> The following are "insureds": <br /> a. Any subsidiary which is a legally incorporated entity of which you maintain ownership or <br /> majority interest on the effective date of this Coverage Form except: <br /> (1) Any subsidiary that is an insured under any other automobile liability policy. <br /> (2) Any subsidiary which would be an insured under any other automobile liability policy but for <br /> the termination of such policy or exhaustion of such policy's Limits of Insurance. <br /> b. Any organization you newly acquire or form, and in which you maintain ownership or majority <br /> interest, but only for the period beginning when you first maintained majority interest until the <br /> end of the policy period of this Coverage Form, or the next anniversary of the inception date <br /> of this Coverage From, whichever is earlier. However, the newly acquired or formed <br /> organization is not an "Insured": <br /> (1) For "bodily injury" or "property damage" resulting from an "accident" that occurred before <br /> you acquired or formed the organization. <br /> (2) If it is an insured under any other automobile liability policy or would be an insured under <br /> any other automobile liability policy but for the termination of such policy or exhaustion of <br /> such policy's Limits of Insurance. <br /> E. SUPPLEMENTARY PAYMENTS <br /> SECTION II - COVERED AUTOS LIABILITY COVERAGE, A.2.a.(2) is deleted and replaced with the <br /> following: <br /> (2) Up to $5,000 for cost of bail bands (including bonds for related traffic law violations) required <br /> because of an "accident" we cover. We do not have to furnish these bonds. <br /> SECTION II - COVERED AUTOS LIABILITY COVERAGE, A.2.a.(4) is deleted and replaced with the <br /> following: <br /> CA 86 20 (Ed. 05116) (Pane 4 of 9) <br />