4. DEFENSE AND SETTLEMENT
<br />The 111SUrer has the right and duty to defend any Claim to which this insurance applies, even if the allegations of the Claim are
<br />groundless, false or fraudulent. The Insurer will pay Claim Expenses pursuant to its duty to defend Claims to which the
<br />insurance applies. The Insurer has the right to investigate, adjust, defend, appeal and, with the consent of an Insured, negotiate
<br />the settlement of any Claim whether within or above the Deductible. If an Insured refuses to consent to a settlement
<br />reconarnended by the Insurer, the Insurer's obligation to any Insured for Damages and Claim Expenses attributable to such
<br />Claim shall be limited to:
<br />the amount of the covered Damages in excess of the Deductible which the Insurer would have paid in settlement at the time
<br />the Insured first refused to settle;
<br />b. plus covered Claim Expenses incurred up to the date the Insured First refused to settle;
<br />c. plus severity-five percent (75%) of covered Claim Expenses and Damages in excess of the first settlement amount
<br />reconuriended by the Insurer to which the Insured did not consent.
<br />Payment of a., b. and c. above, is the lirnit of the Insurer's liability under this Policy on any Claim in which the Insured fails or
<br />refuses to consent to the Insurer's settlement recommendation, subject at all times to the Limits of Liability and Deductible
<br />provisions. The remaining twenty-five percent (25%) of covered Claim Expenses and Damages in excess of the first settlement
<br />amount recornmended by the Insurer to which the Insured did not consent shall be the obligation of the Insured.
<br />All Insureds agree to cooperate with the Insurer and provide such assistance and information as the Insurer may reasonably
<br />request. Upon the Insurer's request, any Insured shall submit to examination and interrogation by a representative of the Insurer,
<br />under oath if required, and shall attend hearings, depositions, trials and shall assist in the conduct of suits, including but not
<br />limited to effecting settlement, securing and giving evidence,, obtaining the attendance of witnesses, giving written statements to
<br />the Insurer"s representatives and meeting with such representatives for the purpose of investigation and/or defense, all of the
<br />above without charge to the Insurer, All Insureds further agree not to take any action, without the Insurer's prior written consent,
<br />which may increase any Insured's or the Insurer's exposure for Claim Expenses or Damages.
<br />All Insureds shall execute all papers required and shall do everything that may be necessary to secure and preserve any rights of
<br />indemnity, contribution or apportionment which an Insured or the Insurer may have, including the execution of such documents
<br />as are necessary to enable the Insurer to bring suit in an Insured's name, and shall provide all other assistance and cooperation
<br />which the Insurer may reasonably require,
<br />An Insured shall not demand or agree to arbitration or mediation of any Claim without the prior written consent of the Insurer.
<br />An Insured shall not, except at personal cost, make any offer or payment, admit any liability, settle any Claim, assume any
<br />obligation, or incur any expense without the Insurer's prior Written Consent.
<br />The Insurer will have no obligation to pay Damages or Claim Expenses or to defend any Claim after the Limits of Liability have
<br />been exhausted. Further, the Insurer has no obligation to apply for or furnish costs of attachment or similar bonds.
<br />When used in this Policy:
<br />a, "Bodily Injury" means physical injury, rental anguish, emotional distress, sickness, disease or death of any person,
<br />b. "Circumstance" means any fact, situation, event or occurrence that could reasonably be the basis for a Claim.
<br />c. "Claim" means:
<br />(i) a demand for money as compensation for a Wrongful Act; or
<br />(ii) any judicial or administrative proceeding, including a Disciplinary Proceeding, mediation or arbitration initiated against
<br />any Insured seeking to hold Such Insured responsible for a Wrongful Act, including any appeal therefrom; or
<br />HODGES LACEY & ASSOCIATES, LLC A-2014-037 REVIEWED BY: At, A,11 .. EUNICE HEREDIA (PG 10 OF 24)
<br />RTP 101 (09/11)
<br />Insured
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