1. C LAUSES & W ARRANTIES Presented by: MR. EDGARDO V. BETITO

2. Definition CLAUSES written stipulations to: To modify, to limit, to extend or to clarify insurance coverage Making the printed form adaptable to needs of the insuring public WARRANTIES written stipulations requiring the insured to guarantee that: certain things were true, are true, or will be true certain things had been done, have been done, will be done in the future and that a breach of such warranty will render the policy null and void

3. Warranties, Clauses, and Rates Warranties and Clauses Premium Rate LOWER,HIGHER,NIL

4. Replacement Value Clause Definition: Cost of replacing or restoring the property by similar property in a condition equal but not better or more extensive than its condition when new. Rules: 1. Class A building, BME 2. Independent and qualified appraiser 3. Cost to be borne by the Insured 4. Insurance coverage must be at full current replacement value 5. Replacement Value Endorsement must be attached 6. Must be carried within 6 months 7. Loss adjustment shall be on SV until reinstatement is actually accomplished (no payment until the cost of reinstatement has been actually incurred 8. Subject to Average Clause

5. Special Condition for Declaration Policy Reason: To enable for an insurance company charge premium based on the value at risk 1. Industrial and warehouse risk 2. Sum Insured must be less than P 10M 3. Provisional premium of < 75% of the annual premium 4. Declaration may be weekly or monthly. If failed to declare within 7 days, the SI shall be deemed to be the Insured’s declaration 5. Premium is adjusted and calculated on the average amount insured at a given rate 6. For 12 months policy only 7. Minimum premium retained by the company is the provisional premium 8. Subject to the pro-rata condition of Average 9. Stocks must be in the building under the control of the Insured 10. Cancellation by the Insured, Cancellation after loss

6. Broad Water Damage (with ABOWTAP) 1. Accidental discharge, leakage or overflowing of water/steam from plumbing, septic tanks, heating systems, elevated &/or underground tanks and cylinders, busting or overflowing of water tanks, apparatus or pipes, standpipes for fire hose, domestic appliances, refrigerating system, air-conditioning system 2. Breakage of or leakage from street water supply mains or fire hydrants; and 3. Accidental discharge or leakage of refrigerants from air- conditioning or refrigeration systems

7. Broad Water Damage (with ABOWTAP) PROVIDED THAT: A. The Insured undertakes to exercise all ordinary and reasonable precautions for the maintenance and safety of the property B. The Insured shall bear a minimum deductible of P 20,000 as stated in the schedule, for each and every claim under this endorsement in additional to other deductible that may be applicable under the policy C. All conditions of this policy shall apply, except in so far as they may be hereby expressly varied and that reference to loss or damage by fire shall be deemed to apply also to loss or damage as aforementioned; and D. The liability of the company under this endorsement shall in no case exceed the sum insured by each item of the policy

8. Broad Water Damage (with ABOWTAP) E. This endorsement does not cover the following: 1. Damage to plumbing, septic tanks, heating systems, elevated &/or underground tanks and cylinders, standpipes for fire hose, industrial and domestic appliances, refrigerating system, air-conditioning system from which the accidental discharge, leakage or overflow of water/steam emanated 2. Loss or damage by water discharge or leaking from any automatic sprinkler installations within the described buildings.

9. Property under Care, Custody and Control The insurance is extended to cover the property as described in the schedule belonging to or being in the care, custody or control of the Insured for which the Insured is legally liable.

10. Automatic Increase Clause This policy extends to cover amount representing increase in value in excess of the sum insured indicated up to __% over the existing cover limit, it being understood that the Insured undertakes to advise such additional amounts within 30 days upon company’s knowledge of increase and to pay additional premium required from the date of inception thereof, and thereupon this Policy shall be endorsed accordingly. Following endorsements of any additional amounts, the provisions of this memorandum are fully reinstated.

11. Capital Additions Clause This insurance hereby extends to cover alterations and improvements (but not appreciations in value in excess of the sum insured) to property (other than stocks on trade or merchandise if insured hereby) specified herein to an amount not exceeding ___% of the sum insured thereby, it being understood that the Insured undertakes to advise the company of such alterations, additions, improvements within 30 days from date of delivery or completion and to pay additional premium. Anything undeclared shall cease to be covered under the policy.

12. Automatic Reinstatement Clause

13. End of Presentation.. Thank you Presented by: MR. EDGARDO V. BETITO