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c. The following is added to SECTION II - <br />LIABILITY, D. Liability and Medical Expenses <br />Limits of insurance: <br />Product Recall Expense Limits of Insurance <br />a. The Limits of Insurance shown in the <br />SUMMARY OF COVERAGES of this <br />endorsement and the rules stated below <br />fix the most that we will pay under this <br />Product Recall Expense Coverage <br />regardless of the number of: <br />(1) Insureds; <br />(2) "Covered Recalls" initiated; or <br />(3) Number of "your products" <br />withdrawn. <br />b. The Product Recall Expense Aggregate <br />Limit Is the most that we will reimburse <br />you for the sum of all "product recall <br />expenses" Incurred for all "covered <br />recalls" initiated during the policy period. <br />c. The Product Recall Each Occurrence <br />Limit is the most we will pay in <br />connection with any one defect or <br />deficiency. <br />of a deductible amount, you shall <br />promptly reimburse us for the part of the <br />deductible amount we paid. <br />The Product Recall Expense Limits of <br />Insurance apply separately to each <br />consecutive annual period and to any <br />remaining period of less than 12 months, <br />starting with the beginning of the policy <br />period shown in the Declarations, unless the <br />policy period is extended after issuance for <br />an additional period of less than 12 months. <br />In that case, the additional period will be <br />deemed part of the last preceding period for <br />the purposes of determining the Limits of <br />Insurance. <br />d. The following Is added to SECTION II <br />LIABILITY, E. Liability and Medical Expense <br />General Conditions, 2. Duties In the Event of <br />Occurrence, Offense, Claim or Suit; <br />You must see to It that the following are <br />done in the event of an actual or anticipated <br />"covered recall" that may result in "product <br />recall expense": <br />d. All "product recall expenses" in <br />connection with substantially the same <br />general harmful condition will be <br />deemed to arise out of the same defect <br />or deficiency and considered one <br />"occurrence". <br />e. Any amount reimbursed for "product <br />recall expenses" In connection with any <br />one "occurrence" will reduce the amount <br />of the Product Recall Expense Aggregate <br />Limit available for reimbursement of <br />"product recall expenses" In connection e• <br />with any other defect or deficiency, <br />f, If the Product Recall Expense Aggregate <br />Limit has been reduced by <br />reimbursement of "product recall <br />expenses" to an amount that is less than <br />the Product Recall Expense Each <br />Occurrence Limit, the remaining <br />Aggregate Limit is the most that will be <br />available for reimbursement of "product <br />recall expenses" in connection with any <br />other defect or deficiency. <br />g. Product Recall Deductible <br />We will only pay for the amount of <br />"product recall expenses,, which are in <br />excess of the $800 Product Recall <br />Deductible. The Product Recall <br />Deductible applies separately to each <br />"covered recall". The limits of insurance <br />will not be reduced by the amount of this <br />deductible. <br />We may, or will If required by law, pay all <br />or any part of any deductible amount, if <br />applicable. Upon notice of our payment <br />(1) Give us prompt notice of any discovery <br />or notification that "your product" must <br />be withdrawn or recalled. Include a <br />description of "your product' and the <br />reason for the withdrawal or recall; <br />(2) Cease any further release, shipment, <br />consignment or any other method of <br />distribution of like or similar products <br />until it has been determined that all <br />such products are free from defects that <br />could be a cause of loss under this <br />Insurance. <br />For the purpose of this endorsement, the <br />following definitions are added to SECTION <br />II . LIABILITY, F. Liability and Medical <br />Expenses Degnitlons; <br />1. "Covered recall' means a recall made <br />necessary because you or a government <br />body has determined that a known or <br />suspected defect, deficiency, <br />inadequacy, or dangerous condition in <br />'your product' has resulted or will result <br />in "bodily injury" or "property damage". <br />2. "Product recall expense(s)" means: <br />a. Necessary and reasonable expenses <br />for: <br />(1) Communications, Including radio <br />or television announcements or <br />printed advertisements including <br />stationary, envelopes and <br />postage; <br />391-100609 16 Includes copyrighted materials of Insurance Services Offices, Inc., with its permission. Page 6 of 6 <br />