• Contingent Physical Damage Clause

    Subject to the terms, conditions, limits and exclusions of the policy, the insurers agree to cover physical loss or damage to property leased from ...

    which has not been specifically declared hereunder, but has instead been insured by the lessee's own insurers, provided that :

    1. coverage is afforded only for loss resulting from insolvency of the lessee's insurer, or for claims that were repudiated by the lessee's insurer but would have been paid by this policy if the same coverage had applied, and only to the extent and in the amount that this insurance policy would have paid had the same insurance coverage applied;
    2. the terms, conditions, limits and exclusions provided in this policy shall not provide coverage broader than that provided in the lessee's insurance policy;
    3. coverage hereunder shall apply only after the lessee receives a formal letter of claim repudiation from his insurer and has exhausted all efforts at obtaining payment from his insurer, such efforts will be evidenced by formal letters of claim repudiation by the lessee's insurer or by evidence that it is insolvent;
    4. the lessee must have complied with all of his responsibilities as a claimant under this policy;
    5. subject to the agreement of the insurer, the lessee agrees to have the leased property insured under the master policy and to pay the full premium, therefore retroactively from the commencement date of lease;
    6. any claim hereunder shall be made within 6 months after the lessee's insurer has issued a letter repudiating the lessee's claim.