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18. PRODUCT RECALL EXPENSE <br />With respect to this Provision 18., the Recall Of Products, Work Or Impaired Property exclusion under <br />Coverage A Bodily Injury And Property Damage Liability is deleted. <br />a. The following is added to Section III - Limits Of Insurance section: <br />1. The Limits of Insurance shown in the Product Recall Schedule and rules below fix the most we will <br />pay regardless of the number of <br />(a) Insureds; <br />(b) "Covered recalls" initiated; or <br />(c) Number of "your products" recalled. <br />2. The Product Recall Aggregate Limit is the most we will reimburse you for the sum of all "product recall <br />expenses" incurred for all "covered recalls" initiated during the policy period. <br />3. Subject to 2. above, the Each Product Recall Limit is the most we will reimburse you for the sum of all <br />"product recall expenses" arising out of any one "covered recall" for the same defect or deficiency. <br />4. Subject to 3. above, we will pay only the amount of "product recall expenses" in excess of the deductible <br />amount shown in the Product Recall Schedule. <br />Schedule <br />Limits of Insurance <br />Product Recall Aggregate Limit $ 50,000 <br />Each Product Recall Limit $ 25,000 <br />Each Product Recall Deductible $1,000 <br />If any limits and deductible other than those above are shown in <br />the Declarations as the Products Recall Expense Limits, the <br />amounts shown in the Declarations will replace the Limits of <br />Insurance and deductible provided for this coverage. <br />The Limits of Insurance for this coverage apply separately to each consecutive annual period and to any <br />remaining period of less than 12 months, starting with the beginning of the policy period shown in the <br />Declarations, unless the policy period is extended after issuance for an additional period of less than 12 <br />months. In that case, the additional period will be deemed part of the last preceding period for the <br />purposes of determining the Limits of Insurance. <br />b. The following is added to the Duties In The Event Of Occurrence, Offense, Claim Or Suit provision <br />under Section IV — Conditions: <br />You must see to It that the following are done in the event of an actual or anticipated "covered recall" that <br />may result in "product recall expense": <br />1. Give us prompt notice of any discovery or notification that "your product" must be withdrawn or <br />recalled. Include a description of "your product" and the reason for the withdrawal or recall; <br />2. Cease any further release, shipment, consignment or any other method of distribution of like or <br />similar products until it has been determined that all such products are free from defects that could be <br />a cause of loss under this insurance; <br />3. As often as may be reasonably required, permit us to inspect "your product" that demonstrates the need <br />for the "covered recall" and permit us to examine your books and records. Also permit us to take <br />damaged and undamaged samples of "your products" for inspection, testing and analysis; and <br />permit us to make copies from your books and records; <br />4. Send us a signed, sworn, proof of loss containing the information we requested to settle the claim. <br />You must do this within 60 days after our request. We will supply you with the necessary forms; and <br />5. Permit us to examine any insured under oath, while not in the presence of any other insured and at <br />such times as may reasonably be required, about any matter relating to this insurance or your claim, <br />including an insured's books and records. In the event of an examination, an insured's answers must <br />be signed. <br />Page 0 of 7 Includes copyrighted material of Insurance Services Office, Inc. VCG 207 07 09 <br />Copyright 2009, OneBeacon Insurance Group LLC <br />