05/12/08 Insurance Risk/Regulatory Compliance Department Las Vegas Division

05/12/08 Definitions Insurance: “A contractual relationship that exists when one party (the insurer) for a consideration (the premium) agrees to reimburse another party (the insured) for loss to a specified subject (the risk) caused by designated contingencies (hazards or perils).” Insurance Policy: “In broad terms, the entire written contract of insurance. More specifically, it is the basic written or printed document as well as the coverage forms and endorsements added to it.” General Liability Insurance: “Insurance protecting commercial insureds from mostly liability exposures other then automobile and professional liability.”

05/12/08 Definitions Additional Insured: “A person or organization not automatically included as an insured under an insurance policy, but for whom insured status is arranged, usually by endorsement. A named insured’s impetus for providing additional insured status to others may be a desire to protect the other party because of a close relationship with that party. (e.g., employees or members of an insured club) or to comply with a contractual agreement requiring the named insured to do so (e.g., customers or owners of property leased by the named insured).” Additional Insured Endorsement: “Policy endorsement used to add coverage for additional insureds by name, e.g., mortgage holders or lessors. There are a number of different forms intended to address various situations, some of which afford very restrictive coverage to additional insureds. (Rather than naming each additional insured, a blanket additional insured endorsement is sometimes available).”

05/12/08 Definitions Primary Cover: “The policy that responds first to an insured loss, either on a first-dollar basis or after allowing for a deductable. When the primary coverage limits are paid, any remaining loss is covered by whatever excess layer of insurance may be in place.” Waiver of Subrogation: “The relinquishment by an insurer of the right to collect from another party for damages paid on behalf of the insured. The waiver of subrogation condition in current liability policies is referred to as “transfer of rights of recovery.” Workers Compensation: “The system by which no-fault statutory benefits prescribed in state law are provided by an employer to an employee (or the employee’s family) due to job-related injury (including death) resulting from an accident or occupational disease.” Employers Liability Coverage: “This coverage is provided by part 2 of the basic workers compensation policy and pays on behalf of the insured (employer) all sums that the insured shall become legally obligated to pay as damages because of bodily injury by accident or disease sustained by any employee of the insured arising out of and in the course of his employment by the insured.”

05/12/08 Definitions Endorsement: An addendum to an insurance policy that changes the original policy provisions. Endorsements may serve any number of functions, including broadening the scope of coverage, restricting pr limiting the scope of coverage, clarifying the application of coverage to some unique exposure, adding other parties as insureds, or adding locations to the policy.” OCIP: OWNER Controlled Insurance Program CCIP: CONTRACTOR Controlled Insurance Program Wrap up Policies: “Form of insurance that covers all parties for a specific project or multiple projects. The term is derived form the concept of “pooling” or “wrapping” the risk of several parties into a single insurance program. Typically covers: Owner, General Contractor, and Design Professional (if specifically included).”

05/12/08 YESCO Subcontractor Insurance Requirements Minimum Insurance Requirements: Worker’s compensation coverage in at least the amount required by applicable statue, employer’s liability coverage in the amount of at least $1,000,000. Comprehensive GL (including personal injury), automobile, and property damage liability coverage, each in the amount of at least $5,000,000 which amounts may include excess (“umbrella”) coverage. –Policies shall be primary with respect to the work to be performed and written with insurers having an A.M. Best Rating of “A” or better. –Policies shall waive subrogation rights against Young Electric Sign Company and its officers, directors, employees, and agents. –Such policies shall list the following as Additional Insured on a CG Endorsement or equivalent: Young Electric Sign Company and its directors, officers, employees, and agents as their interests may appear. Other parties may be required to be listed as Additional Insured pursuant to a Prime contract. –Policies shall not be cancelled without thirty (30) days prior written notice to Contractor.

05/12/08 Subcontractor Prequalification S:\Scanned Documents\LAS VEGAS\Contracts\Contract Admin\Subcontract Agreements\DIRECTIONS S:\Scanned Documents\LAS VEGAS\Contracts\Contract Admin\Subcontract Agreements\DIRECTIONS File Name: Subcontractor Prequalifications File Name: Subcontractor Prequalifications

05/12/08 Certificate of Liability

05/12/08 Endorsements