RISK SPECIALISTS COMPANY OF KENTUCKY, INC. A Division of CHARTIS INSURANCE EQUINE INSURANCE PROGRAM RULES

EQUINE MORTALITY POLICY

1. Scope of Coverage

This policy covers the actual financial loss to an insured if his or her horse dies because of a covered cause of loss. Coverage may also include various endorsements as outlined below.

2. Eligibility

Coverage may be provided for any insured with a financial interest in a covered horse.

3. Policy Format

An Equine Mortality Policy is comprised of the Declarations, Equine Mortality Coverage Form, any applicable endorsements, and state amendatory endorsements.

4. Rates and Premium Calculations

a. Rates may be found in the Rate Pages. b. The rating base for Equine Mortality Coverage is the value of the horse. c. The premium is computed by multiplying the appropriate rate for the breed, use, and age times the value of the horse. d. Optional coverages are subject to either the rates or the premium found in the Rate Pages.

5. Minimum Premium

The minimum premium is $150 per policy, fully earned at inception. The minimum premium shall not be reduced by any credits or cancellation of the policy. Exceptions: $25.00 minimum premium in Michigan and South Dakota.

6. Deductible

The Equine Mortality Policy is written without a deductible unless otherwise specified.

7. Coverage Territory

The coverage territory is the United States of America, its territories and possessions, Puerto Rico, and Canada unless otherwise endorsed.

Equine Insurance Rules 1 of 7 Edition 6/09 RISK SPECIALISTS COMPANY OF KENTUCKY, INC. A Division of CHARTIS INSURANCE EQUINE INSURANCE PROGRAM RULES

8. Veterinary Exam / Declaration of Health

A Veterinary Certificate of Examination* is required if any one of the following is applicable:

• Sum Insured is over $50,000 • Foal under 31 days of age (vet exam must also include IgG test result) • Horse over 15 years of age • Horse that had an illness, injury, lameness or surgery in the past twelve months • Horse that has Loss of Use coverage

*Veterinary exams must be performed no earlier than 20 days prior to the effective date of coverage

If none of the above applies, a Declaration of Health statement signed by the insured and dated no earlier than 20 days prior to the effective date is acceptable.

9. Claims or Loss Reporting

It is important that your insureds are fully aware of the policy requirements for timely notice of illness, injury, surgery or death of an insured animal. Orange Stall Cards with the adjuster’s name and contact information are provided. Please see that the insured receives one card for each horse insured. Let us know when an additional stall cards are needed.

10. Billing Methods

Agency Bill - The premium is collected by the agent. The net premium, plus 100% of any tax or surcharge is due to the company within 30 days of the close of the month in which the business was processed. A statement of account with payment instructions is sent to the agent on a monthly basis.

Direct Bill - Total premium is billed by Direct Bill Services.

For premiums of $750.00 or higher, installment payments are available. • 40% Down payment (plus 100% of any tax or surcharge) • 20% Due at 2, 4 and 6 months

There is a $10.00 service fee added to each installment

The full annual commission is paid to the agent by Direct Bill Services once the down payment is received.

The billing method for a policy cannot be changed by endorsement.

Equine Insurance Rules 2 of 7 Edition 6/09 RISK SPECIALISTS COMPANY OF KENTUCKY, INC. A Division of CHARTIS INSURANCE EQUINE INSURANCE PROGRAM RULES

EQUINE MORTALITY POLICY

Equine Morality Insurance Policy – Form #77659

a. Coverage: Coverage is provided for the death of an insured horse caused by accident, illness, injury, or disease and for humane destruction to relieve incurable and excessive suffering if caused by a covered cause of loss. Coverage also applies to theft within the United States of America (excluding its territories and possessions or Puerto Rico) or Canada. b. Premium: Rates may be found in the Rate Pages.

EQUINE MORTALITY POLICY ENDORSEMENTS

The following endorsements are available to be added to an Equine Mortality Policy:

Emergency Colic Surgery Endorsement – Form # 97006 (1/08)

a. Coverage: This endorsement extends coverage under the Policy to reimburse the insured up to a maximum of $3,000 for Emergency Colic Surgery. b. Eligibility: This extension is included on all policies. c. Premium: No Charge

Twelve Months Extension Endorsement-Other than Thoroughbreds – Form # 77661 (1/07)

a. Coverage: This endorsement extends coverage under the Policy to pay for the death of a covered horse(s) which occurs: 1) Within twelve months after the policy period ends; and 2) Is the result of a covered cause of loss that occurred during the policy period and that was reported to us before the policy period ended. b. Eligibility: This extension is included for all horses other than thoroughbreds under twenty (20) years of age. Indemnity is reduced for horses over the age of seventeen (17). c. Premium: No Charge

Twelve Months Extension Endorsement-Thoroughbreds – Form # 77662 (1/07)

a. Coverage: This endorsement extends coverage under the Policy to pay for the death of a covered horse(s) which occurs: 1) Within twelve (12) months after the policy period ends; and 2) Is the result of a covered cause of loss that occurred during the policy period and that was reported to us before the policy period ended. b. Eligibility: This extension is included for all thoroughbred horses under eighteen (18) years of age. Indemnity is reduced for horses over the age of fourteen (14). c. Premium: No Charge

Equine Insurance Rules 3 of 7 Edition 6/09 RISK SPECIALISTS COMPANY OF KENTUCKY, INC. A Division of CHARTIS INSURANCE EQUINE INSURANCE PROGRAM RULES

Loss of Use Endorsement – Accidental, External & Violent Injury Only – Form # 77663 (1/07)

a. Coverage: Coverage is provided for 60% of the insured value in the event a covered horse becomes totally and permanently incapable of fulfilling its intended use or function as a result of accidental, external, and violent injury which occurred and was reported to us during the policy period. b. Eligibility: Only Hunter/Jumper, Event, Dressage and horses shown on the flat age 2-15 are eligible for this coverage. “Rodeo” type uses (Cutting, Roping, Reining, Barrel Racing, Team Penning) are not eligible for this coverage. A veterinary examination certificate is required. c. Premium: The premium is equal to 60% of the applicable Mortality Insurance premium for the covered horse. (The minimum rate for this coverage is 1.75%).

Major Medical Endorsement – Form #77668 (1/08)

a. Coverage: Covers reasonable, necessary, and customary veterinary charges that arise from an accident or illness. The Limits of Insurance available are $2,500, $5,000, $7,500, $10,000 and 12,500, subject to a maximum benefit no greater than the Mortality Limit of Insurance. A $325 deductible per claim applies. b. Eligibility: This endorsement is only available on pleasure, show and breeding horses six (6) months to fifteen (15) years old and can only be written in conjunction with full Equine Mortality Coverage. Standardbreds and horses used for racing, race training or intended for racing are not eligible for this coverage. c. Premium: Limit of Liability Annual Premium Per Covered Horse* $ 2,500 $ 160.00 $ 5,000 $ 190.00 $ 7,500 $ 240.00 $ 10,000 $ 340.00 $ 12,500 $ 450.00

*Premiums are pro-rated when horses are added to or deleted from a policy

Surgical Procedures Endorsement – Form # 77669 (1/07) a. Coverage: Covers reasonable, necessary, and customary fees or charges for surgical procedures performed on covered horses that result from an accident or illness. The Limits of Insurance available are $2,500, $5,000, $7,500, and $10,000, subject to a maximum benefit no greater than the Mortality Limit of Insurance. A $100 deductible applies per claim. b. Eligibility: This endorsement is only available on horses six (6) months of age or older. Horses used for racing, race training or intended for racing are not eligible for this coverage. c. Premium: Limit of Liability Annual Premium Per Covered Horse* $ 2,500 $ 100.00 $ 5,000 $ 125.00 $ 7,500 $ 150.00 $ 10,000 $ 200.00

*Premiums are pro-rated when horses are added to or deleted from a policy Equine Insurance Rules 4 of 7 Edition 6/09 RISK SPECIALISTS COMPANY OF KENTUCKY, INC. A Division of CHARTIS INSURANCE EQUINE INSURANCE PROGRAM RULES

Agreed Value Endorsement – Form # 77672 (1/07) a. Coverage: This coverage replaces the “Fair Market Value” loss payment in the Policy to a stated amount that must be agreed upon by the underwriter prior to binding. This coverage amends the Limit of Insurance provision and provides coverage for the stated amount for which the horse is insured under the Policy except for reasons stated in the endorsement. b. Eligibility: Available on all classes, subject to substantiation of value submitted by the insured and agreed by the company. c. Premium: No charge.

Worldwide Coverage Endorsement – Form # 77675 (1/07) a. Coverage: This endorsement is available to extend the territory coverage worldwide. b. Eligibility: Available on all classes, subject to full details of location, purpose and length of time out of the United States. c. Premium: Between 0% and 10% of the Limit of Insurance. Must submit to Underwriters for rating.

Stallion Availability Endorsement – Form # 77678 (1/07) a. Coverage: Coverage is provided in the event the insured stallion fails to complete two services of the nominated mare. b. Eligibility: Available to mare owners who have purchased a “No Guarantee” season to the insured stallion. This endorsement must be written in conjunction with a Mortality policy on the stallion. c. Premium: 2.0% of the insured value.

Stallion Permanent Disability Coverage Endorsement – Form # 77679 (1/07) a. Coverage: Coverage is provided if the insured stallion becomes totally and permanently infertile, impotent, or otherwise incapable of serving mares as a result of an accident, illness, or disease sustained or contracted during the policy period. b. Eligibility: Available on Colts and Stallions up to and including eighteen (18) years of age, subject to a Genitalia Statement signed by a veterinarian. c. Premium: 0.5% of the insured value for stallions up to age fifteen (15). 2.0% for stallions age 16 3.5% for stallions age 17 5.0% for stallions age 18

Loss Payable Endorsement – Form # 91368 (1/07) a. Coverage: This endorsement is available to extend the coverage to include a loss payee. b. Eligibility: Available on all classes. c. Premium: There is no premium consideration.

Equine Insurance Rules 5 of 7 Edition 6/09 RISK SPECIALISTS COMPANY OF KENTUCKY, INC. A Division of CHARTIS INSURANCE EQUINE INSURANCE PROGRAM RULES

EQUINE SPECIFIED PERILS POLICY

1. Scope of Coverage

This policy covers the actual financial loss to an insured if his or her horse dies because of a covered specified peril.

2. Eligibility

Coverage may be provided for any insured with a financial interest in a covered horse.

3. Policy Format

An Equine Specified Perils Policy is comprised of the Declarations, Equine Specified Perils Coverage Form, any applicable endorsements, and state amendatory endorsements.

4. Rates and Premium Calculations

a. The rate for animals at the farm only: 0.6%. Racetrack or Show animals: 1.0%. b. The rating base for Specified Perils coverage is the value of the horse. c. The premium is computed by multiplying the appropriate rate by the value of the horse. d. Optional Perils Endorsement is available for an additional premium of 0.25%.

5. Minimum Premium

The minimum premium is $150 per policy, fully earned at inception. The minimum premium shall not be reduced by any credits or cancellation of the policy.

6. Deductible

The Specified Perils policy is written without a deductible unless otherwise specified.

7. Coverage Territory

The coverage territory is the United States of America, its territories and possessions, Puerto Rico, and Canada unless otherwise endorsed.

Equine Insurance Rules 6 of 7 Edition 6/09 RISK SPECIALISTS COMPANY OF KENTUCKY, INC. A Division of CHARTIS INSURANCE EQUINE INSURANCE PROGRAM RULES

EQUINE SPECIFIED PERILS POLICY

Equine Specified Perils Insurance Policy Form #91365 (1/07)

a. Coverage: Coverage is provided for the death or humane destruction of an insured horse caused by or made necessary from a covered peril. b. Rate: The rate for animals at the farm only: 0.6%. Racetrack or Show animals: 1.0%.

EQUINE SPECIFIED PERILS POLICY ENDORSEMENTS

The following endorsements are available to be added to an Equine Specified Perils Policy:

Optional Perils Endorsement Form # 91370 (1/07)

a. Coverage: This endorsement extends the list of covered perils. b. Rate: Additional charge of 0.25% of the insured value.

Loss Payable Endorsement – Form # 91369 (1/07)

a. Coverage: This endorsement is available to extend the coverage to include a loss payee. b. Premium: There is no premium consideration.

Equine Insurance Rules 7 of 7 Edition 6/09 EQUINE INSURANCE PROGRAM RATES

THOROUGHBRED

All States

Class of Business Rates Per Value

A. Foals 24 hrs – 7 days old 5.95% 8 days – 30 days old 5.50% 31 days – 89 days old 5.10% 90 days – September 30 4.50%

B. Weanlings 3.00% October 1 to December 31

C. Yearlings 3.00% January 1 to October 30 (Effective October 31+ same as Flatracing Rate)

D. Flatracers – Up to/including age 7 Colts & Fillies Values Up To $24,999 5.70% Values $25,000 and Over 4.90% Geldings 7.20%

Over 7 years old, submit for rating

E. Breeding Horses Stallions Mares Ages: 2-8 3.00% 3.25% 9-12 3.25% 3.44% 13 3.25% 3.90% 14 3.25% 3.90% 15 and over submit for rating

Thoroughbreds used only for Pleasure: Rate as a Warmblood For Hunter/Jumper, Eventing & Dressage: See Other Uses (All Breeds)

Equine Insurance Rates 1 of 6 Edition 6/09 EQUINE INSURANCE PROGRAM RATES

HACKNEY, HAFLINGER, MISSOURI FOX TROTTING HORSE, MORGAN & MORAB NATIONAL SHOW HORSE AND SADDLEBRED All States All States

Class of Business Rates Per Value Class of Business Rates Per Value

A. Foals A. Foals 24 hrs – 7 days old 7.00% 24 hrs – 7 days old 7.00% 8 days – 30 days old 6.50% 8 days – 30 days old 6.50% 31 days – December 31 6.00% 31 days – December 31 6.00%

B. Pleasure/Show/Breeding New Renewal B. Pleasure/Show/Breeding New Renewal Ages: 1-12 3.00% 3.00% Ages: 1-12 2.85% 2.85% 13 3.50% 3.50% 13 2.85% 2.85% 14 4.50% 4.25% 14 2.85% 2.85% 15 6.00% 5.25% 15 2.85% 2.85% 16 9.00% 9.00% 16 9.00% 9.00% 17 13.50% 13.50% 17 13.50% 13.50% 18 17.50% 17.50% 18 17.50% 17.50% 19 and over submit for rating 19 and over submit for rating

Equine Insurance Rates 2 of 6 Edition 6/09 EQUINE INSURANCE PROGRAM RATES

APPALOOSA, BUCKSKIN, STANDARDBRED PAINT, PALOMINO, PINTO, AND QUARTER HORSE All States All States

Class of Business Rates Per Value Class of Business Rates Per Value

A. Foals A. Foals 24 hrs – 7 days old 7.00% 24 hrs – 7 days old 5.60% 8 days – 29 days old 6.50% 8 days – 30 days old 5.20% 30 days – 89 days old 6.00% 31 days – 89 days old 4.80% 90 days – December 31 5.50% 91 days – December 31 4.40%

B. Yearlings B. Flatracers – Up to/including age 7 Colts, Fillies, Geldings 3.20% Colts and Fillies Insured Value up to $50,000 8.25% C. Racing – Up to/including age 7 Insured Value over $50,000 7.15% Colts and Fillies 3.60% Geldings 9.35% Geldings 5.60%

D. Breeding Horses C. Cutting (Ages 1-14) 3.00% Ages: 2-12 3.00% 13 4.00% Reining (Ages 1-14) 3.00% 14 5.20% 15 6.80% Halter (Ages 1-14) 5.50% 16 8.80% - Maximum Limit $25,000 17 11.20% - HYPP Exclusion applies 18 14.40% 19 and over submit for rating Pleasure, Show, Barrel Racing, Roping, Team Penning & Western Pleasure Ages: 1-14 3.40% 15 6.00% 16 9.00% 17 13.00% 18 18.00%

Up to Over D. Breeding $50,000 $50,000 Ages: 1-12 3.40% 4.50% 13 5.00% 6.50% 14 8.00% 9.50% 15 11.00% 13.50% 16 14.00% 18.50% 17 19.00% 23.50% 18 24.00% 30.50% 19 and over submit for rating

Equine Insurance Rates 3 of 6 Edition 6/09 EQUINE INSURANCE PROGRAM RATES

CLEVELAND BAY, DUTCH WARMBLOOD,

FRIESIAN, HANOVERIAN, HOLSTEINER, ANDALUSIAN, ARABIAN, HUNGARIAN WARMBLOOD, ICELANDIC, EGYPTIAN ARABIAN, IRISH SPORT HORSE, LIPIZZAN, PASO FINO, AND LUSITANO, NORWEGIAN FJORD, PERUVIAN PASO OLDENBURG, PERCHERON, SELLE FRANCAIS, SWEDISH WARMBLOOD, TRAKEHNER, AND WARMBLOOD

All States All States

Class of Business Rates Per Value Class of Business Rates Per Value

A. Foals A. Foals 24 hrs – 7 days old 7.00% 24 hrs – 7 days old 7.00% 8 days – 30 days old 6.50% 8 days – 30 days old 6.50% 31 days – 150 days old 6.00% 31 days – December 31 6.00%

B. Flatracers – Up to/including age 7 B. Pleasure/Show/Breeding New Renewal Colts and Fillies Ages: 1-15 3.00% 3.00% Values up to $24,999 5.50% 16 10.00% 6.00% Values $25,000+ 5.00% 17 12.00% 8.50% Geldings 6.50% 18 15.00% 11.50%

C. Pleasure/Show/Breeding 19 and over submit for rating (151 days – 15 years old) Values up to $75,000 3.00% Values over $75,000 3.25%

16 and over submit for rating

Equine Insurance Rates 4 of 6 Edition 6/09 EQUINE INSURANCE PROGRAM RATES

BASHKIR CURLY, BELGIAN,

CLYDESDALE, COB, CONNEMARA PONY, OTHER USES (ALL BREEDS) DRAFT, DUTCH DRAFT, IRISH DRAFT, MINIATURE, MUSTANG, PONY OF THE AMERICAS, RACKING HORSE, ROCKY MOUNTAIN HORSE, SHETLAND PONY, SHIRE, TENNESSEE WALKING HORSE*, WELSH PONY, AND OTHER BREEDS All States All States

Class of Business Rates Per Value Class of Business Rates Per Value

A. Hunter/Jumper/Eventer/ New Renewal A. Foals 3-Day Eventer 24 hrs – 7 days old 7.00% Ages: 2-15 3.60% 3.60% 8 days – 30 days old 6.50% 16 6.70% 4.50% 31 days – December 31 6.00% 17 8.50% 5.90% 18 10.60% 7.80% B. Pleasure/Show/Breeding Ages: 1-12 4.00% B. Dressage New Renewal 13 7.10% Ages: 2-15 14 3.00% 3.00% 9.50% 16 15 10.00% 4.00% 11.80% 17 16 12.00% 6.00% 15.30% 18 17 15.00 % 9.00% 20.70% 18 23.80% C. Steeplechaser

Ages: 2-12 19 and over submit for rating 9.00% 13 and over submit for rating.

D. Hurdler

Ages: 2-12 8.50% 13 and over submit for rating.

*Tennessee Walking Horses: Flat Shod Only

Equine Insurance Rates 5 of 6 Edition 6/09 EQUINE INSURANCE PROGRAM RATES

SPECIFIED PERILS (ALL BREEDS)

All States

Class of Business Rates Per Value

A. At Farm Only 0.6 %

B. Racetrack / Show Animals 1.0 %

Optional Perils (Added to the 0.25 % appropriate Specified Perils Rate)

Equine Insurance Rates 6 of 6 Edition 6/09

AMERICAN HOME ASSURANCE COMPANY (a capital stock company) 70 Pine Street New York, NY 10270 (212) 770-7000

EQUINE MORTALITY INSURANCE POLICY DECLARATIONS PAGE

POLICY NUMBER: RENEWAL OF NUMBER:

ITEM 1. NAMED INSURED & MAILING ADDRESS:

ITEM 2. POLICY PERIOD: From: To:

at 12:01 a.m. Standard Time at your mailing address shown above.

ITEM 3. SCHEDULE OF COVERED HORSES LISTED ON THE FOLLOWING PAGE(S)

ITEM 4. PREMIUM: Municipal Tax Premium Surcharge TOTAL Minimum Policy Premium $150.00 Fully earned at inception

ITEM 5. FORMS AND ENDORSEMENTS ATTACHED TO THE POLICY:

ITEM 6. AGENT/PRODUCER NAME & ADDRESS:

By By Countersignature (In States Where Applicable) Authorized Representative

Page 1 of 2 77660(8/06)

EQUINE MORTALITY INSURANCE POLICY DECLARATIONS PAGE (Continued)

ITEM 3. SCHEDULE OF COVERED HORSES

Name of Horse/Breed Premium / Horse Sire & Dam Coverage Limit of Rate Tax & Surcharge No. Year of Birth (Date if under one year)/sex Description Insurance (if applicable) Use / Ownership Interest

By Authorized Representative

Page 2 of 2 77660(8/06)

THE INSURANCE COMPANY OF THE STATE OF PENNSYLVANIA (a capital stock company) 2005 MARKET STREET PHILADELPHIA, PA 15222 (212) 770-7000

EQUINE MORTALITY INSURANCE POLICY DECLARATIONS PAGE

POLICY NUMBER: RENEWAL OF NUMBER:

ITEM 1. NAMED INSURED & MAILING ADDRESS:

ITEM 2. POLICY PERIOD: From: To:

at 12:01 a.m. Standard Time at your mailing address shown above.

ITEM 3. SCHEDULE OF COVERED HORSES LISTED ON THE FOLLOWING PAGE(S)

ITEM 4. PREMIUM: Municipal Tax Premium Surcharge TOTAL Minimum Policy Premium $150.00 Fully earned at inception

ITEM 5. FORMS AND ENDORSEMENTS ATTACHED TO THE POLICY:

ITEM 6. AGENT/PRODUCER NAME & ADDRESS:

By By Countersignature (In States Where Applicable) Authorized Representative

Page 1 of 2 78150 (8/06)

EQUINE MORTALITY INSURANCE POLICY DECLARATIONS PAGE (Continued)

ITEM 3. SCHEDULE OF COVERED HORSES

Name of Horse/Breed Premium / Horse Sire & Dam Coverage Limit of Rate Tax & Surcharge No. Year of Birth (Date if under one year)/sex Description Insurance (if applicable) Use / Ownership Interest

By Authorized Representative

Page 2 of 2 78150 (8/06) EQUINE MORTALITY INSURANCE POLICY

Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties, and what is and is not covered.

Words and phrases that appear in bold face have special meaning. Refer to Section III. Definitions.

I. COVERAGES

A. DEATH OR HUMANE DESTRUCTION

We shall indemnify you in the event of either the death or humane destruction of any horse(s), provided that the death or humane destruction occurs either:

During the policy period; or

If the policy is in effect for at least a period of twelve (12) months, within ninety (90) days after the policy period has expired, provided that the accident, injury, illness, or disease causing the death or humane destruction occurred and was reported to us during the policy period.

B. THEFT OR UNLAWFUL REMOVAL

We shall indemnify you in the event of any of the following:

1. Theft of any horse(s);

2. Death or humane destruction as a result of the theft of the horse;

3. Death, humane destruction, or permanent loss of possession as a result of the unlawful removal of any horse(s); or

4. Malicious or willful castration or spaying by or on behalf of whomever is responsible for such theft or unlawful removal of the horse,

Which takes place:

5. Within the United States of America (excluding its territories and possessions or Puerto Rico) or Canada; and

6. During the policy period; or

7. If the policy is in effect for at least a period of twelve (12) months, within ninety (90) days after the policy period has expired, provided that the theft or unlawful removal occurred during the policy period.

C. WOBBLER SYNDROME COVERAGE

1. We shall indemnify you, up to but not exceeding our Limit of Insurance, in the event that, during the policy period, any covered horse is diagnosed with wobbler syndrome, which is chronic and progressive in nature and is of a minimum grade three (3) level as defined in Section III. Definitions G.

77659 (1/07) Page 1 of 9 2. CONDITIONS:

a. It is a condition precedent to this coverage that the diagnosis of wobbler syndrome be both: i. Supported and confirmed by a recent negative result for a test for equine protozoal myelins and radiographic and/or myelographic evidence, where deemed necessary and administered during the policy period; and

ii. Deemed by both your and our veterinarian to be chronic and progressive in nature and of a minimum grade three (3) level.

b. We will also cover death or humane destruction of the horse if directly caused by, as a consequence of, or contributed to by a surgical operation conducted by a veterinarian; provided that the veterinarian certifies that the surgical operation was necessary because of radiographic and/or myelographic evidence.

c. It is a condition precedent to this coverage that in the event of any uncertainty or dispute between You and our veterinarian as to whether the wobbler syndrome, confirmed by the radiographic and/or myelographic evidence, is chronic and progressive in nature and is of a minimum grade three (3) level, then a third veterinarian, mutually agreed upon by the other two veterinarians, shall render an independent opinion which will be final and binding upon you and us. The fee for the third veterinarian shall be apportioned equally between you and us.

We shall have the right, if we so choose, to title and possession of the horse in the event we pay a claim under wobbler coverage.

Indemnification to you shall be limited to the fair market value of the horse at the time of the accident, injury, illness, disease, or loss causing its death, humane destruction, theft, or unlawful removal up to, but not exceeding our Limit of Insurance as shown in the Declarations, Item 3. Schedule of Covered Horses.

II EXCLUSIONS

This Policy shall not apply to claims arising out of, resulting from, directly or indirectly caused by, or as a consequence of:

A. Any dishonest, fraudulent, criminal, intentional, or malicious act or omission committed by you or by your family, representatives, employees, or any other persons who have care, custody, or control of the horse(s).

This exclusion shall not apply if your family member, representative, employee, or another person with care, custody, or control of the horse is subsequently convicted of a criminal act arising out of the horse's death, unlawful removal, or theft, provided that you had no knowledge of or involvement in the criminal act.

B. 1. Any weapon employing atomic fission or fusion; or

2. Nuclear reaction or radiation, or radioactive contamination from any other cause.

C. 1. War, including undeclared or civil war;

2. Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign, or other authority using military personnel or other agents; or

77659 (1/07) Page 2 of 9

3. Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these.

D. The use of any horse(s) for any purpose(s) other than those shown in the Declarations, Item 3. Schedule of Covered Horses.

E. Surgical operations.

This exclusion shall not apply:

1. To any surgical operation that is required only in an emergency attempt to prevent death or humane destruction and performed and certified by a veterinarian; or

2. If we are notified in advance and agree to a surgical operation to be performed by a veterinarian.

F. Administration of drugs, medication, or inoculation. Medication includes any hormone, vitamin, protein, or other substance other than unadulterated food or drink. This exclusion shall not apply if a veterinarian certifies and directs that such administration is required to prevent accident, disease, illness, or injury occurring during the policy period.

G. Any injury which may occur to any covered horse(s) while either being loaded onto or already on board an aircraft with any other animals to which the horse(s) may have a natural dislike or hostility.

H. The intentional slaughter or killing of a horse under the order of any government, public, or local authority or by any person or body who has jurisdiction over the matter or otherwise.

This exclusion shall not apply:

1. If we authorize the destruction of the horse;

2. To humane destruction; or

3. Where the horse is destroyed while on board an aircraft, and such destruction is carried out by or on the order of an authority responsible during that time; provided that the authority later confirms by a sworn statement that, in his/her opinion, the horse was so uncontrollable and dangerous, destruction was necessary to secure the safety of the aircraft, its passengers, crew, or cargo.

I. Mysterious disappearance or escape.

J. Unauthorized instructions to transfer horses to any person or to any location.

K. Any accident, illness, or disease that occurred to a horse, while owned by you, prior to the effective date of this Policy and not disclosed to us or our authorized representative.

L. Any temporary or permanent relinquishment of all or part of your ownership rights to a horse by sale, lease, or any other reason.

M. West Nile Virus, unless you provide to us a written certification from a veterinarian that the horse has received a current vaccination and booster against such a virus in accordance with the vaccine manufacturer’s recommendations and the vaccine has been approved for horses by the U.S. Department of Agriculture.

77659 (1/07) Page 3 of 9 III. DEFINITIONS

A. Fair market value means the amount a willing buyer and a willing seller would agree upon, both having reasonable knowledge of relevant facts surrounding the transaction and neither being under any compulsion or obligation to buy or sell.

B. Insured, you or your means the individual(s), partnership, corporation, or organization named in the Declarations.

C. Horse refers to whole or part interest in any horse specified or described in the Declarations, Item 3. Schedule of Covered Horses.

D. Humane destruction means:

1. The destruction of a horse because the horse has incurred an injury or is suffering from an excessively painful disease, provided that a veterinarian, appointed by us, certifies that the horse’s injury or suffering is incurable and so excessive that immediate destruction is necessary; or

2. The destruction of a horse because the horse incurs an injury, provided that a veterinarian, appointed by you, certifies that the horse’s injury is incurable and so excessive that immediate destruction is necessary without prior approval by our appointed veterinarian.

E. Veterinarian means a physician or surgeon experienced in equine practice and medicine who has a valid license to practice veterinary medicine in the state or jurisdiction where he or she practices.

F. We, us, and our refer to the Company providing this insurance.

G. Wobbler syndrome is the cervical vertebral malformation and/or spinal cord compression and/or cervical compressive myelophathy of a horse. Wobbler syndrome is further defined by the following six (6) grade levels: 0 – Neurologically normal 1 – Neurological defects barely detectable at normal gaits; exacerbated by excitatory tests 2 – Neurological defects readily seen at walk 3 – Worsened neurological defects and the horse may stumble or fall with manipulation 4 – Horse may fall at normal gaits 5 – Recumbent

IV. LIMITS OF INSURANCE

The most we shall pay for any one horse specifically described in the Declarations, Item 3. Schedule of Covered Horses is either:

A. The applicable Limit of Insurance shown in the Declarations; or

B. The fair market value;

Whichever amount is less.

V. CONDITIONS

77659 (1/07) Page 4 of 9 A. COVERAGE TERRITORY

Unless otherwise specified, this policy applies to the United States of America, its territories and possessions, Puerto Rico and Canada, provided that the covered horse(s) remain within such Coverage Territory throughout the policy period.

B. HEALTH OF COVERED HORSES

1. It is a condition precedent of this Policy that, as of the effective date of this Policy and with the exception of those conditions fully and accurately disclosed to us and approved by us or our authorized representative, the horse is to be of sound health and free from any illness, disease, lameness, injury, or physical disability.

2. This condition also applies with respect to any:

a. Additional Limits of Insurance on a horse that is already insured under this Policy;

b. Horse that is added to the Policy during the policy period; and/or

c. Other extension or addition of coverage.

Paragraph 1. must be satisfied as of the date of such increase, addition, or other extension or addition of coverage.

3. Our acceptance of a veterinary certificate or declaration of health, where such declaration has been accepted by us as a substitute for the veterinary certificate, submitted in connection with your application for insurance or any extension of or addition to coverage on the horse shall neither remove nor reduce the requirement of full compliance with paragraph 1. above. If we accepted a veterinary certificate or declaration of health then we shall have the burden of proving that the horse was not in sound health or free from any illness, disease, lameness, injury, or physical disability at the effective date of coverage for the horse.

C. DUTIES IN THE EVENT OF THEFT

Coverage B. Theft or Unlawful Removal shall apply provided that:

1. Prior to the inception date of this Policy no thefts, attempted thefts, or threats of theft were made against you or your horse(s).

2. You notify us immediately if theft or unlawful removal occurs. Our obligation to indemnify you for theft or unlawful removal of the horse shall begin ninety (90) days from the date you advise us of the theft or unlawful removal, provided that the horse was not recovered in that time.

3. The theft or unlawful removal of any horse is reported immediately but no later than twenty-four (24) hours to the appropriate law enforcement agencies. You must comply with their instructions or recommendations, but in no case must you:

a. Pay or promise to pay ransom; or

b. Give any third party assurances of your intent to pay.

We shall be released from any obligation to indemnify you for theft or unlawful removal of the horse if you do either 3.a. or 3.b. above.

77659 (1/07) Page 5 of 9

4. Coverage on a female horse (mare) shall not include any of her foals or an embryo within the female, unless such foal or embryo is separately insured under this Policy.

D. RECOVERY OF HORSES

We shall have the right to title and possession of any horse that:

1. Has been recovered after theft;

2. We have paid a claim prior to the horse’s recovery; and

3. You fail to return the payment of a claim to us.

E. CASTRATION/SPAYING

In the event of a covered horse with a limit of liability in excess of $100,000 being operated upon for castration or spaying, this Policy shall cease to cover such horse at midnight, local time, immediately prior to the day of such operation. You shall be entitled to a pro rata return of premium on the horse.

F. CHANGES

This Policy contains all the agreements between you and us concerning this insurance. The first Named Insured in the Declarations is authorized to request changes in this Policy. This Policy can only be changed by a written endorsement we issue and make part of this Policy.

G. TRANSFER OF YOUR RIGHTS AND DUTIES UNDER THIS POLICY

Your rights and duties under this Policy may not be transferred without our written consent. If you are declared legally bankrupt, your rights and duties shall be transferred to your legal representative but only while acting within the scope of his duties as your legal representative.

H. PREMIUMS

The first named Insured shown in the Declarations:

1. Is responsible for the payment of all premiums; and

2. Will be the payee for any return premiums we pay.

I. APPRAISAL

If you and we disagree on the value of a horse or the amount of loss, either may make written demand for an appraisal. In this event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire. If they cannot agree on an umpire, either may request that selection be made by a judge of a court having jurisdiction. The appraisers will state separately the value of the horse and amount of loss. If they fail to agree, they will submit their difference to the umpire. A decision by the umpire which is agreed to by either of the two appraisers will be binding. Each party will:

1. Pay its chosen appraiser; and

2. Bear the other expenses of the appraisal and umpire equally.

77659 (1/07) Page 6 of 9 If there is an appraisal, we will still retain our right to deny the claim.

J. DUTIES IN THE EVENT OF ACCIDENT, ILLNESS, INJURY, DEATH, OR THEFT

1. You must see to the following in the event of accident, illness, injury, death, or theft of a horse:

a. Immediately notify the appropriate law enforcement agency if a law may have been broken.

b. Give us or our authorized representative immediate notice of the accident, illness, injury, death, or theft, including a description of the horse involved.

c. Employ a veterinarian, at your expense, to treat the horse. If necessary, allow the horse to be removed to an appropriate facility of our choosing for proper treatment, at your expense.

d. In case of the horse’s death, have a postmortem examination done, at your expense, by a veterinarian approved by us or our authorized representative.

e. Allow us to inspect and examine the horse and any relevant records.

f. Send us:

i. The death certificate; and

ii. The postmortem examination report; and

iii. A signed sworn proof of loss containing information we request so that we may investigate the claim. You must provide us with this statement within sixty (60) days of the death, humane destruction, or theft.

g. Cooperate with us in the investigation and/or settlement of the claim.

h. You shall be responsible for the disposal of any horse’s remains, at your expense and with our approval.

2. Once we have received the sworn proof of loss, we shall pay for a covered claim, provided:

a. You has complied with all terms of this Policy;

b. We have reached an agreement with you on the amount of loss or an appraisal agreement has been reached; and

c. You have paid the premium of this Policy.

K. SOLE OWNER

It is a condition precedent of this Policy that, as of the effective date of this Policy, you are the sole owner of each covered horse, or with respect to syndicated or partnership owned horses, you are the sole owner of the stated interest in such covered horse. Sole ownership includes you acting as an authorized agent for one or more owners of the horse or the stated interest of the horse.

77659 (1/07) Page 7 of 9 In the event that your covered interest or the covered interest by you acting as an authorized agent is terminated or reduced, the coverage provided under this Policy shall automatically be reduced proportionately, unless you have contracted to maintain the coverage for the new owner of the horse or the stated interest.

L. OTHER INSURANCE

If at the time of death, humane destruction, or theft of a covered horse, you have other insurance for that horse, whether or not valid or collectible, we shall be released from any liability or obligation to indemnify with respect to that horse, unless we have agreed by endorsement to the procurement of the other insurance.

If we agree to the other insurance, then we shall only be responsible for our proportion of the fair market value in the same ratio as our limit of insurance bears to the total amount of all insurance, whether or not valid or collectible, on the covered horse for its death, humane destruction, or theft.

M. RACING OR AUCTION OF HORSES

If at any time during the policy period, any horse is:

1. Raced in any claiming race and the claiming price is less than our Limit of Insurance, our Limit of Insurance for such horse shall automatically be reduced to a sum not exceeding the lowest amount for which the horse could have been claimed or sold in the race; or

2. Entered into a public auction, but not sold, and our Limit of Insurance exceeds the highest bid at such auction, then you shall notify us within seven (7) days of the auction and shall prove any Limit of Insurance that exceeds the highest bid at the public auction, or our Limit of Insurance shall be automatically reduced, after the seven (7) days, to the highest amount bid at the auction.

In the event that our Limit of Insurance is reduced, you shall be entitled to a return of premium on the amount which this Policy shall have been reduced, calculated on a pro rata basis from the date of such reduction.

N. ABANDONMENT

There shall be no abandonment of any horse(s) to us.

O. TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US

If any person or organization to or for whom we make payment under this Policy has rights to recover damages from another, those rights are transferred to us to the extent of our payment. That person or organization must do everything necessary to secure our rights and must do nothing to impair them.

P. CONCEALMENT, MISREPRESENTATION, OR FRAUD

This coverage shall be void in any case of fraud by you as it relates to this Policy at any time. It is also void if you, at any time, intentionally conceals or misrepresents a material fact concerning:

1. This Policy;

2. The horse;

77659 (1/07) Page 8 of 9

3. Your interest in the horse; or

4. A claim under this Policy.

Q. LEGAL ACTION AGAINST US

No one may bring a legal action against us under this Policy unless:

1. There has been full compliance with all the terms of this Policy; and

2. The action is brought within one (1) year after the date on which the death, humane destruction, unlawful removal, or theft of the horse occurred.

R. NO BENEFIT TO BAILEE

No person or organization, other than you, having custody of the horse, shall benefit from this insurance.

S. CONFORMANCE TO STATUTE

To the extent a clause of this Policy conflicts with a statute of the state or country within which this Policy is issued, the clause shall be deemed amended so as to conform to minimum requirements of the statute.

T. TITLES OF PARAGRAPHS

Titles of paragraphs are inserted solely for convenience of reference and shall not be deemed to limit, expand, or otherwise affect the provisions to which they relate.

U. FULL PREMIUM IF LOSS

In the event of a loss of any covered horse(s) that are added to the Declarations, Item 3. Schedule of Covered Horses after the inception date of this Policy at a pro rata additional premium, or if the pro rata premium was paid with respect to the horse(s) originally listed in the Declarations, Item 3. Schedule of Covered Horses, you shall pay the difference between the actual premium paid with respect to such horse(s) and the full annual premium calculated at the full annual rate on the amount insured with respect to such horse(s).

V. CANCELLATION

This Policy may be canceled by you by surrendering it to us or any of our authorized agents or by mailing to us written notice stating when thereafter the cancellation shall be effective. However, if we cancel this Policy because you have failed to pay a premium when due, this Policy may be canceled by us by mailing a written notice of cancellation to you at the address shown in this Policy stating when, not less than ten (10) days thereafter, such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice.

The time of the surrender or the effective date and hour of cancellation stated in the notice shall become the end of the policy period. Delivery of such written notice either by you or by us shall be equivalent to mailing. If cancelled, the unearned premium shall be computed pro rata, subject to a minimum earned premium of $150.00. Premium adjustment may be made either at the time cancellation is effected or as soon as practicable after cancellation becomes effective, but payment or tender of unearned premium is not a condition of cancellation. If a loss is paid on a covered horse whether by settlement, compromise, or otherwise, no return of premium shall be allowed in respect of the covered horse.

77659 (1/07) Page 9 of 9 ENDORSEMENT

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement, effective at 12:01 A.M. forms a part of

Policy No. Issued to:

By:

EMERGENCY COLIC SURGERY ENDORSEMENT

This endorsement modifies insurance provided under the following:

EQUINE MORTALITY INSURANCE POLICY

I. COVERAGE PROVIDED BY THIS ENDORSEMENT

We will pay reasonable and customary fees for emergency colic surgery and post- operative care incurred by you for each horse shown in the DECLARATIONS, ITEM 3. SCHEDULE OF COVERED HORSES.

II. LIMITS

A. The most we will pay for emergency colic surgery and post-operative care in the aggregate per policy period shall be the lesser of 50% of the Equine Mortality Limit or $3000 for each horse requiring such surgery and/or care.

B. Subject to paragraph A., above:

1. The most we will pay for post-operative care is the lesser of:

a. 50% of the reasonable and customary fees incurred for emergency colic surgery; or

b. The reasonable and customary fees incurred for fifteen (15) days of post-operative care from the date of the emergency colic surgery.

2. The most we will pay for third party emergency transportation is $300.

III. EXCLUSIONS

In addition to the exclusions stated in the policy, this endorsement shall not apply to any horse that has had:

A. Colic, impaction, or torsion in the twelve (12) months prior to the effective date of this policy, or

B. Digestive tract resection at any time.

IV. CONDITIONS APPLICABLE

A. You must give us or our authorized representative immediate notice of the emergency colic surgery including a description of the horse involved.

B. The emergency colic surgery must be performed: 97006 (1/08) Page 1 of 2 1. During the Policy Period; and

2. By a licensed veterinarian in:

a. an equine surgical clinic, or

b. a school of veterinary medicine, located within the continental United States or Canada.

C. Within sixty (60) days after emergency colic surgery, you must file with us a Statement of Loss that includes:

1. a report signed by the attending licensed veterinarian describing the emergency colic surgery performed and the horse’s condition; and

2. copies of paid, itemized bills showing all fees, costs and expenses for emergency colic surgery, associated post-operative care and third party emergency transportation.

D. If you have other insurance covering emergency colic surgery, this insurance shall be excess over such other insurance, whether valid or collectible.

V. DEFINITIONS APPLICABLE

A. Emergency colic surgery means any invasive and corrective surgical procedure performed under general anesthesia used in the treatment of acute abdominal pain of the equine large and/or small intestine. Emergency colic surgery does not include veterinarian trip or call charges, diagnostic tests, such as, examinations, palpations, x- rays or any non-surgical procedure, such as, the administering of mineral oils or injections of pain killers to treat mild colic symptoms related to the occurrence.

B. Third party emergency transportation means the transportation of the horse to a school of veterinary medicine or an equine surgical clinic for emergency colic surgery by an independent contractor, who is not an employee or a relative of the Insured.

C. Reasonable and customary fees mean fees that are:

1. Within the range of usual fees for the same or a similar service or supply as charged by most veterinarians within a given area; or

2. Justified by all the attending circumstances, including, but not limited to, the time required to perform the service or procedure, the severity of the condition treated and the complexity of treatment of a particular case.

D. Post-operative care means veterinary care associated with the emergency colic surgery.

All other terms, conditions, and exclusions of the policy shall remain unchanged.

AUTHORIZED REPRESENTATIVE

97006 (1/08) Page 2 of 2 ENDORSEMENT

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement, effective at 12:01 A.M. forms a part of

Policy No. Issued to:

By:

TWELVE MONTH EXTENSION ENDORSEMENT - OTHER THAN THOROUGHBREDS

This endorsement modifies insurance provided under the following:

EQUINE MORTALITY INSURANCE POLICY

This coverage ONLY applies to those horses for which a specific premium charge for Twelve Month Extension is indicated in the Declarations, Item 3. Schedule Of Covered Horses.

In consideration of the renewal of this insurance and of the additional premium paid, the Policy is amended as follows:

Section I. Coverages is deleted in its entirety and replaced with the following:

I. COVERAGES

A. DEATH OR HUMANE DESTRUCTION

We shall indemnify you in the event of either the death or humane destruction of any horse(s), provided that the death or humane destruction occurs either:

1. During the policy period; or

2. If the Policy is in effect for at least a period of twelve (12) months, within twelve (12) months after the policy period has expired, provided that the accident, injury, illness, or disease causing the death or humane destruction occurred and was reported to us during the policy period.

B. THEFT OR UNLAWFUL REMOVAL

We shall indemnify you in the event of any of the following:

1. Theft of any horse(s);

2. Death or humane destruction as a result of the theft of the horse;

3. Death, humane destruction, or permanent loss of possession as a result of the unlawful removal of any horse(s); or

77661 (1/07) Page 1 of 3

4. Malicious or willful castration or spaying by or on behalf of whomever is responsible for such theft or unlawful removal of the horse;

Which takes place:

5. Within the United States of America or Canada; and

6. During the policy period; or

7. If the Policy is in effect for at least a period of twelve (12) months and within twelve (12) months after the policy period has expired, provided that the theft or unlawful removal occurred during the policy period.

Indemnification to you shall be limited to the fair market value of the horse at the time of the accident, injury, illness, disease, or loss causing its death, humane destruction, theft, or unlawful removal up to but not exceeding our Limit of Insurance as shown in the Declarations, Item 3. Schedule of Covered Horses.

C. WOBBLER SYNDROME COVERAGE

1. We shall indemnify you, up to but not exceeding our Limit of Insurance, in the event that, during the policy period, any covered horse is diagnosed with wobbler syndrome, which is chronic and progressive in nature and is of a minimum grade three (3) level as defined in Section III. Definitions G.

2. Conditions:

a. It is a condition precedent to this coverage that the diagnosis of wobbler syndrome be both:

i. Supported and confirmed by a recent negative result for a test for equine protozoal myelins and radiographic and/or myelographic evidence, where deemed necessary and administered during the policy period; and

ii. Deemed by both your and our veterinarian to be chronic and progressive in nature and of a minimum grade three (3) level.

b. We will also cover death or humane destruction of the horse if directly caused by, as a consequence of, or contributed to by a surgical operation conducted by a veterinarian; provided that the veterinarian certifies that the surgical operation was necessary because of radiographic and/or myelographic evidence.

c. It is a condition precedent to this coverage that in the event of any uncertainty or dispute between your and our veterinarian as to whether the wobbler syndrome, confirmed by the radiographic and/or myelographic evidence, is chronic and progressive in nature and is of a minimum grade three (3) level, then a third veterinarian, mutually agreed upon by the other two veterinarians, shall render an independent opinion

77661 (1/07) Page 2 of 3

which will be final and binding upon you and us. The fee for the third veterinarian shall be apportioned equally between you and us.

We shall have the right, if we so choose, to title and possession of the horse in the event we pay a claim under wobbler coverage.

D. In the event that death, humane destruction, theft, or unlawful removal occurs within ninety (90) days after the expiration of the policy period, to a horse that is more than sixteen (16) years of age at such time, our Limit of Insurance as specified in the Declarations, Item 3. Schedule of Covered Horses shall be reduced as follows:

25% if the horse is 17 years of age; 33% if the horse is 18 years of age; and 40% if the horse is 19 years of age.

This Endorsement shall not apply to any horse if, ninety (90) days after the expiration of the policy period, the horse is twenty (20) years of age or older.

All other terms, conditions, and exclusions of the policy shall remain unchanged.

AUTHORIZED REPRESENTATIVE

77661 (1/07) Page 3 of 3

ENDORSEMENT

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement, effective at 12:01 A.M. forms a part of

Policy No. Issued to:

By:

TWELVE MONTH EXTENSION ENDORSEMENT – THOROUGHBREDS

This endorsement modifies insurance provided under the following:

EQUINE MORTALITY INSURANCE POLICY

This coverage ONLY applies to those horses for which a specific premium charge for Twelve Month Extension is indicated in the Declarations, Item 3. Schedule Of Covered Horses.

In consideration of the renewal of this insurance and of the additional premium paid, the Policy is amended as follows:

Section I. Coverages is deleted in its entirety and replaced with the following:

I. COVERAGES

A. DEATH OR HUMANE DESTRUCTION

We shall indemnify you in the event of either the death or humane destruction of any horse(s), provided that the death or humane destruction occurs either:

1. During the policy period; or

2. If the Policy is in effect for at least a period of twelve (12) months, within twelve (12) months after the policy period has expired, provided that the accident, injury, illness, or disease causing the death or humane destruction occurred and was reported to us during the policy period.

B. THEFT OR UNLAWFUL REMOVAL

We shall indemnify you in the event of any of the following:

1. Theft of any horse(s);

2. Death or humane destruction as a result of the theft of the horse;

3. Death, humane destruction, or permanent loss of possession as a result of the unlawful removal of any horse(s); or

77662 (1/07) Page 1 of 3 4. Malicious or willful castration or spaying by or on behalf of whomever is responsible for such theft or unlawful removal of the horse;

Which takes place:

5. Within the United States of America or Canada; and

6. During the policy period; or

7. If the Policy is in effect for at least a period of twelve (12) months, within twelve (12) months after the policy period has expired, provided that the theft or unlawful removal occurred during the policy period.

Indemnification to you shall be limited to the fair market value of the horse at the time of the accident, injury, illness, disease, or loss causing its death, humane destruction, theft, or unlawful removal up to but not exceeding our Limit of Insurance as shown in the Declarations, Item 3. Schedule of Covered Horses.

C. WOBBLER SYNDROME COVERAGE

1. We shall indemnify you, up to but not exceeding our Limit of Insurance, in the event that, during the policy period, any covered horse is diagnosed with wobbler syndrome, which is chronic and progressive in nature and is of a minimum grade three (3) level as defined in Section III. Definitions G.

2. CONDITIONS:

a. It is a condition precedent to this coverage that the diagnosis of wobbler syndrome be both:

i. Supported and confirmed by a recent negative result for a test for equine protozoal myelins and radiographic and/or myelographic evidence, where deemed necessary and administered during the policy period; and

ii. Deemed by both your and our veterinarian to be chronic and progressive in nature and of a minimum grade three (3) level.

b. We will also cover death or humane destruction of the horse if directly caused by, as a consequence of, or contributed to by a surgical operation conducted by a veterinarian; provided that the veterinarian certifies that the surgical operation was necessary because of radiographic and/or myelographic evidence.

c. It is a condition precedent to this coverage that in the event of any uncertainty or dispute between your and our veterinarian as to whether the wobbler syndrome, confirmed by the radiographic and/or myelographic evidence, is chronic and progressive in nature and is of a minimum grade three (3) level, then a third veterinarian, mutually agreed upon by the other two veterinarians, shall render an independent opinion

77662 (1/07) Page 2 of 3 which will be final and binding upon you and us. The fee for the third veterinarian shall be apportioned equally between you and us.

We shall have the right, if we so choose, to title and possession of the horse in the event we pay a claim under wobbler coverage.

D. In the event that death, humane destruction, theft, or unlawful removal occurs after ninety (90) days after the expiration of the policy period, to a horse that is more than thirteen (13) years of age at such time, our Limit of Insurance as specified in the Declarations, Item 3. Schedule of Covered Horses, shall be reduced as follows:

25% if horse is 14 years of age; 33% if horse is 15 years of age; 40% if horse is 16 years of age; and 50% if horse is 17 years of age.

This Endorsement shall not apply to any horse if, ninety (90) days after the expiration of the policy period, the horse is eighteen (18) years of age or older.

All other terms, conditions, and exclusions shall remain unchanged.

______Authorized Representative

77662 (1/07) Page 3 of 3 ENDORSEMENT

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement, effective at 12:01 A.M. forms a part of

Policy No. Issued to:

By:

AGREED VALUE ENDORSEMENT

This endorsement modifies insurance provided under the following:

EQUINE MORTALITY INSURANCE POLICY

This coverage ONLY applies to those horses for which Agreed Value is specifically indicated in the Declarations, Item 3. SCHEDULE OF COVERED HORSES.

The Policy is amended as follows:

Provided that we have agreed to and accepted a valuation for the covered horse(s), then our Limit of Insurance as specified in the Declarations, Item 3. Schedule of Covered Horses shall be accepted as the agreed value of the covered horse(s).

However, in the event that at any time during the policy period the covered horse is:

1. Raced in any claiming race where the claiming price is less than our Limit of Insurance as specified in the Declarations, Item 3. Schedule of Covered Horses, then our Limit of Insurance shall automatically be reduced to a sum not exceeding the lowest amount for which the horse could have been claimed or sold in such race;

2. Entered into a public auction but not sold and our Limit of Insurance, as specified in the Declarations, Item 3. Schedule of Covered Horses, exceeds the highest amount bid at such public auction for the horse, then you shall notify us in writing within seven (7) days and shall substantiate any Limit of Insurance that exceeds the highest bid at such public auction or our Limit of Insurance, as specified in the Declarations, Item 3. Schedule of Covered Horses shall automatically be reduced at the expiration of seven (7) days to the highest amount bid at such auction; or

3. Appraised at a value lower than the value accepted and agreed by us for the covered horse then our Limit of Insurance, as specified in the Declarations, Item 3. Schedule of Covered Horses, shall automatically be reduced to the lowest value at which the horse was appraised.

77672 (1/07) Page 1 of 2 In the event that our Limit of Insurance as specified in the Declarations, Item 3. Schedule of Covered Horses is reduced under either 1., 2., or 3. above, you shall be entitled to a return of the premium on the amount by which this Limit of Insurance is reduced, calculated on a pro rata basis from the date of such reduction.

All other terms, conditions, and exclusions of the policy shall remain unchanged.

AUTHORIZED REPRESENTATIVE

77672 (1/07) Page 2 of 2

ENDORSEMENT

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement, effective at 12:01 A.M. forms a part of

Policy No. Issued to:

By:

LOSS OF USE ENDORSEMENT ACCIDENTAL, EXTERNAL, & VIOLENT INJURY ONLY

This endorsement modifies insurance provided under the following:

EQUINE MORTALITY INSURANCE POLICY

This coverage ONLY applies to those horses for which a specific premium charge for Loss of Use (Accidental, External, & Violent Injury Only) is indicated in the Declarations, Item 3. SCHEDULE OF COVERED HORSES.

The Policy is amended as follows:

A. COVERAGE

In the event that a covered horse manifests a condition during the policy period that, while not necessary for humane destruction, in the opinion of both your and our veterinarians, renders the horse totally and permanently unfit for the use as specified in the Declarations, Item 3. Schedule of Covered Horses, we will pay 60% of the Limit of Insurance for that horse and assume title of ownership to the horse.

B. EXCLUSIONS

We shall not cover:

1. Any claim due to lameness including, but not limited to, navicular disease, arthritis, degenerative joint disease, lyme disease, or bone spavins;

2. Any claim as a result of blemishing; or

3. Race horses or horses used primarily for racing activities.

C. CONDITIONS

1. It is a condition precedent to this coverage that the condition manifested by the horse be the direct result of an accidental, external, and violent injury:

a. Which is sustained or contracted during the policy period; and

77663 (1/07) Page 1 of 2 b. Of which we or our authorized representative has been notified immediately upon discovery.

2. Any disagreement between your or our veterinarian over the incapacity or unfitness of the horse will be referred to an independent veterinarian, mutually agreed to by you and us, who will act as arbitrator. The decision made by the independent veterinarian will be binding upon both you and us.

3. If the horse sustains accidental, external, and violent injury during the policy period, of which we or our authorized representative have been notified, but such accidental, external, and violent injury does not manifest itself as a permanent incapacity or unfitness until after the expiration of the policy period, then any claims shall be covered under this Endorsement, provided that the permanent incapacity or unfitness is agreed upon by both your and our veterinarians and occurs within three (3) months after the policy period has expired.

All other terms, conditions, and exclusions of the policy shall remain unchanged.

AUTHORIZED REPRESENTATIVE

77663 (1/07) Page 2 of 2

ENDORSEMENT

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement, effective at 12:01 A.M. forms a part of

Policy No. Issued to:

By:

LOSS PAYABLE ENDORSEMENT

This endorsement modifies insurance provided under the following:

EQUINE MORTALITY INSURANCE POLICY

This endorsement ONLY applies to those horses for which a Loss Payee is specifically indicated in the Declarations, Item 3. Schedule Of Covered Horses.

Any loss by death or humane destruction shall be adjusted with you and shall be payable to you and the Loss Payee described in the Declarations, Item 3. Schedule Of Covered Horses as your and their interest appear.

All other terms, conditions, and exclusions of the policy shall remain unchanged.

AUTHORIZED REPRESENTATIVE

91368 (1/07) Page 1 of 1

ENDORSEMENT

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement, effective at 12:01 A.M. forms a part of

Policy No. Issued to:

By:

MAJOR MEDICAL AND SURGICAL COVERAGE ENDORSEMENT

This endorsement modifies insurance provided under the following:

EQUINE MORTALITY INSURANCE POLICY

This coverage ONLY applies to those horses for which a specific premium charge for Major Medical Coverage is indicated in the Declarations, Item 3. SCHEDULE OF COVERED HORSES.

In consideration of the premium paid, we agree to reimburse you for medical treatment expenses for a covered horse, due to accident, injury, or illness, which both occurs and is reported to us during the policy period, subject to the terms, conditions, exclusions and deductible as defined below.

A. LIMIT OF INSURANCE

Our obligation to indemnify you is limited to the Limit of Insurance for Major Medical shown in the Declarations, Item 3. SCHEDULE OF COVERED HORSES or the Limit of Insurance for Equine Mortality, whichever is less. The Limit of Insurance applies per insured horse in the aggregate during the period of insurance after the deductible is applied.

B. TIME LIMITATIONS

For any one accident, illness, or injury, coverage for medical treatment expenses will cease as of:

1. 120 days from the date of the first treatment; or 2. The expiration date of the policy, as indicated on the Declarations Page, plus 90 days; whichever occurs first. In any event, coverage cannot exceed 120 days in total.

C. COVERED CHARGES

Medical treatment expenses mean reasonable, necessary, and customary veterinary fees or charges for the area for a medical or surgical procedure that arises from an accident, injury, or illness.

77668 (1/08) Page 1 of 3

Medical treatment expenses include the following:

1. Diagnostic tests, including but not limited to x-rays, bone scans, and Magnetic Resonance Imaging (MRI).

2. Shock Wave Therapy, when used to treat a specific injury. Reimbursement for Shock Wave Therapy is limited to:

a. a maximum of $300.00 per treatment, and b. a maximum of $900.00 per policy period.

There shall be no reimbursement for Shock Wave Therapy used for performance enhancing purposes.

D. DEDUCTIBLE FOR MAJOR MEDICAL &/OR SURGICAL EXPENSE COVERAGE

This coverage is subject to a deductible of $325 for each separate claim occurring during the policy period. In the event of any recurring medical condition(s) during the policy period, the Major Medical Deductible shall apply separately to each occurrence.

E. EXCLUSIONS

This Policy shall not apply to claims arising out of, resulting from, directly or indirectly caused by, or as a consequence of:

1. Any accident, injury, or illness, including any recurrence, that the horse contracted or was treated for prior to the effective date of this endorsement; 2. Expenses incurred for other than reasonable and necessary medical treatment expenses; 3. Any treatment normally associated with the maintenance of a healthy horse; 4. Veterinary travel expenses or animal transportation fees; 5. Voluntary surgery including but not limited to castration, caslick’s operations, or cosmetic surgery; 6. Malicious or willful injury, poisoning, or gross negligence committed by you or by your family, representatives, employees, or any other persons who have care, custody, or control of the horse(s). This exclusion shall not apply if your family member, representative, employee, or another person with care, custody, or control of the horse is subsequently convicted of a criminal act arising out of the horse's illness or injury, provided that you had no knowledge of or involvement in the criminal act; 7. Any horse used for racing, race training, or intended for racing; 8. Any horse under six (6) months of age or over fifteen (15) years of age; 9. Any congenital birth defect, including but not limited to umbilical hernia, contracted tendons, or cryptorchidism, whether evident or not at the inception of the policy; 10. Any lameness caused by navicular disease, arthritis, or degenerative joint disease; 11. Boarding and/or hospitalization charges, unless it is at a licensed veterinary clinic and necessary for the treatment of a covered medical condition; 12. Any procedure of performance enhancing treatment such as chiropractic, massage, acupuncture, corrective shoeing, nutraceuticals, intramuscular or intra-articular injections of synovial fluid stimulators, or replacers (such as, but not limited to,

77668 (1/08) Page 2 of 3 Adequan, Hylauronic Acid, Legend, or Corticosteriods), whether or not used in conjunction with other treatments; 13. Any bone chip, OCD lesions, or gastric ulcers unless the horse has been insured for more than six (6) months without any related problems; 14. Neurectomies or complications arising from neurectomies; 15. Post Mortem procedures; or 16. Surgery and/or treatment as a result of respiratory defects that inhibit athletic performance, including but not limited to oral, nasal and/or pharyngeal (roaring) related surgeries and/or treatments, except those which are life preserving.

F. PROOF OF CLAIM

You must give us immediate notice of any accident, illness, or injury. For the purposes of this endorsement only, you must file with the company a proof of claim that consists of:

a. A report signed by the treating veterinarian describing the medical treatment performed and describing the horse’s condition; and b. Copies of service bills showing all medical treatment expenses for which the claim is being made; and c. Filed within 60 days after medical treatment.

THIS INSURANCE IS PRIMARY TO EMERGENCY COLIC SURGERY EXPENSE COVERAGE, HOWEVER THIS COVERAGE IS EXCESS OVER ANY OTHER MEDICAL OR SURGICAL INDEMNITY

All other terms, conditions, and exclusions of the policy shall remain unchanged.

AUTHORIZED REPRESENTATIVE

77668 (1/08) Page 3 of 3 ENDORSEMENT

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement, effective at 12:01 A.M. forms a part of

Policy No. Issued to:

By:

STALLION AVAILABILITY ENDORSEMENT

This endorsement modifies insurance provided under the following:

EQUINE MORTALITY INSURANCE POLICY

This coverage ONLY applies to those horses for which a specific premium charge for Stallion Availability is indicated in the Declarations, Item 3. SCHEDULE OF COVERED HORSES.

The Policy is amended as follows:

A. COVERAGE

We shall indemnify you, up to but not exceeding our Limit of Insurance, in the event that the covered stallion fails to complete two services of the nominated mare during the breeding season, as a result of any of the following:

1. Death of the stallion; 2. Temporary disablement of the stallion; 3. Permanent and total disablement of the stallion; or 4. Inability of the stallion to produce any live sperm at the time of the service.

B. EXCLUSION

This coverage shall not apply in the event of the nominated mare being in foal as a result of one service.

C. DEFINITION

Service means the act of a stallion mounting a mare and achieving intromission and ejaculation under normal stud practice.

77678 (1/07) Page 1 of 2 D. CONDITION

It is a condition precedent of this coverage that, as of the effective date of this Policy and with the exception of those conditions fully and accurately disclosed to us and approved by us or our authorized representative, the stallion is to be of sound health and free from any illness, disease, lameness, injury, or physical disability.

All other terms, conditions, and exclusions of the policy shall remain unchanged.

AUTHORIZED REPRESENTATIVE

77678 (1/07) Page 2 of 2 ENDORSEMENT

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement, effective at 12:01 A.M. forms a part of

Policy No. Issued to:

By:

STALLION PERMANENT DISABILITY COVERAGE ENDORSEMENT

This endorsement modifies insurance provided under the following:

EQUINE MORTALITY INSURANCE POLICY

This coverage ONLY applies to those horses for which a specific premium charge for Stallion Permanent Disability is indicated in the Declarations, Item 3. SCHEDULE OF COVERED HORSES.

In consideration of the additional premium paid, the Policy is amended as follows:

A. STALLION PERMANENT DISABILITY COVERAGE

We shall indemnify you in the event that the stallion, during the policy period, becomes totally and permanently impotent, infertile, or incapable of servicing mares as a result of an accident, injury, illness, or disease sustained or contracted during the policy period.

Indemnification to you shall be limited to the fair market value of the stallion immediately prior to the accident or injury or first manifestation of the illness or disease that results in the loss, up to but not exceeding our Limit of Insurance as shown in the Declarations, Item 3. Schedule of Covered Horses.

B. DEFINITIONS

1. Impotent means the failure of a stallion to achieve intromission.

2. Infertile means sterile.

3. Service, servicing, or serviced means the act of a stallion mounting or the mounting of a mare and achieving intromission and ejaculation under normal stud practice.

4. Stallion means whole or part interest of a stallion(s) specified in the Declarations, Item 3. Schedule of Covered Horses.

77679 (1/07) Page 1 of 2

C. CONDITIONS

1. It is a condition precedent of this coverage that you shall immediately notify us or our authorized representative of any indication that the stallion is impotent, infertile, or incapable of servicing mares.

2. In the event that there is any uncertainty or dispute as to whether an accident or injury sustained or an illness or disease contracted by the stallion has caused the stallion to be totally and permanently impotent, infertile, or incapable of servicing mares, such uncertainty or dispute shall be referred to a panel of three veterinarians. You shall appoint one veterinarian, we shall appoint one veterinarian, and a third shall be mutually agreed upon by the two appointed veterinarians. The decision of the panel shall be final and binding on both you and us. The fees of the appointed veterinarians shall be paid by the party making the appointment and the fee of the third veterinarian shall be apportioned equally between you and us.

3. In the event that there is a claim for 100% interest in the stallion, we shall have the right, if we so elect, to take undisputed ownership of the stallion. Failure or inability to deliver undisputed ownership of the stallion alive to us as salvage shall void this coverage and relieve us of all liability under this Endorsement.

4. In the event that there is a claim for less than 100% of each and every one of the shares in the stallion, or for less than 100% ownership interest in the stallion if not syndicated, we shall, if we so elect, take undisputed title and possession of any interest in the stallion for which claims have been made. Payment of a claim under this coverage entitles us to all rights of the syndicate, partnership, joint ownership, or similar agreement. Failure or inability to deliver title to and possession of any undisputed interest in the stallion, for which claims have been made, shall void this coverage and relieve us of all liability under this Endorsement.

All other terms, conditions, and exclusions of the policy shall remain unchanged.

AUTHORIZED REPRESENTATIVE

77679 (1/07) Page 2 of 2 ENDORSEMENT

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement, effective at 12:01 A.M. forms a part of

Policy No. Issued to:

By:

SURGICAL PROCEDURE EXPENSES ENDORSEMENT

This endorsement modifies insurance provided under the following:

EQUINE MORTALITY INSURANCE POLICY

This coverage ONLY applies to those horses for which a specific premium charge for Surgical Procedure Expenses Coverage is indicated in the Declarations, Item 3. SCHEDULE OF COVERED HORSES.

In consideration of the premium paid, we agree to reimburse you for surgical procedure expenses of a covered horse, due to accident, injury, or illness which occurs during the policy period, subject to the terms, conditions, exclusions, and deductible as defined below.

A. LIMIT OF INSURANCE

Our obligation to indemnify you is limited to the Limit of Insurance for Surgical Procedure as shown in the Declarations, Item 3. SCHEDULE OF COVERED HORSES or the Limit of Insurance for Equine Mortality, whichever is less. The Limit of Insurance applies per insured horse in the aggregate during the period of Insurance after the deductible is applied.

B. COVERED CHARGES

Surgical procedure expenses mean reasonable, necessary, and customary veterinary fees or charges for the area for a surgical procedure that arises from an accident, injury, or illness.

Surgical procedure expenses include post-operative care. Reimbursement for post- operative care is limited to:

1. 50% of the cost of the surgery; and 2. treatment for up to twenty (20) days from the date of surgery.

C. DEDUCTIBLE FOR SURGICAL PROCEDURE EXPENSE COVERAGE

This coverage is subject to a deductible of _$100.00_ for each separate claim during the policy period. In the event of any recurring medical condition(s) which necessitates

77669 (1/07) Page 1 of 2 another surgery, the deductible shall apply separately to each surgery.

D. EXCLUSIONS

This Policy shall not apply to claims arising out of, resulting from, directly or indirectly caused by, or as a consequence of:

1. Any medical conditions existing, diagnosed, or treated prior to the effective date of this endorsement; 2. Veterinary travel expenses or animal transportation fees; 3. Surgery that is not performed by a veterinarian at a school of veterinary medicine or surgical clinic; 4. Examination, medical treatment, or medication that is not given in conjunction with the covered surgical procedure; 5. Surgical procedures performed without general anesthesia; 6. Voluntary surgery including but not limited to castration, caslick’s operations, or cosmetic surgery; 7. Malicious or willful injury or poisoning or gross negligence, whether or not caused by you; 8. Any horse used for racing, race training, or intended for racing; 9. Any horse under six (6) months of age; Surgical procedures to correct any congenital birth defect, including but not limited to umbilical hernia, contracted tendons, or cryptorchidism, whether evident or not at the inception of the Policy; 10. Neurectomies or complications arising from neurectomies; 11. Post Mortem procedures; or 12. Surgical procedures performed to correct respiratory defects that inhibit athletic performance, including but not limited to oral, nasal and/or pharyngeal related surgeries and/or treatments, except those which are life preserving.

E. PROOF OF CLAIM

You must give us immediate notice of any accident, illness, or injury. For the purposes of this endorsement only, you must file with the company a proof of claim which is:

a. A report signed by the treating veterinarian describing the surgical procedure performed and describing the horse’s condition; and b. Copies of service bills showing all surgical procedure expenses for which the claim is being made; and c. Filed within 60 days after the surgical procedure.

THIS INSURANCE IS EXCESS OVER ANY OTHER MEDICAL OR SURGICAL INSURANCE

All other terms, conditions, and exclusions of the policy shall remain unchanged.

AUTHORIZED REPRESENTATIVE

77669 (1/07) Page 2 of 2 ENDORSEMENT

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement, effective at 12:01 A.M. forms a part of

Policy No. Issued to:

By:

WORLDWIDE COVERAGE ENDORSEMENT

This endorsement modifies insurance provided under the following:

EQUINE MORTALITY INSURANCE POLICY

This coverage ONLY applies to those horses for which a specific premium charge for Worldwide Coverage is indicated in the Declarations, Item 3. SCHEDULE OF COVERED HORSES.

The Policy is amended as follows:

Section V. Conditions, A. Coverage Territory is deleted in its entirety and replaced with the following:

A. COVERAGE TERRITORY

This policy shall apply to covered horses anywhere in the world.

All other terms, conditions, and exclusions of the policy shall remain unchanged.

AUTHORIZED REPRESENTATIVE

77675 (1/07) Page 1 of 1

AMERICAN HOME ASSURANCE COMPANY (a capital stock company) 70 Pine Street New York, NY 10270

EQUINE SPECIFIED PERILS INSURANCE POLICY DECLARATIONS PAGE

POLICY NUMBER: RENEWAL OF NUMBER:

ITEM 1. NAMED INSURED & MAILING ADDRESS:

ITEM 2. POLICY PERIOD: From: To:

at 12:01 a.m. Standard Time at your mailing address shown above.

ITEM 3. SCHEDULE OF COVERED HORSES LISTED ON THE FOLLOWING PAGE(S)

ITEM 4. PREMIUM: Municipal Tax Premium Surcharge TOTAL Minimum Policy Premium $150.00 Fully earned at inception

ITEM 5. FORMS AND ENDORSEMENTS ATTACHED TO THE POLICY:

ITEM 6. AGENT/PRODUCER NAME & ADDRESS:

By By Countersignature (In States Where Applicable) Authorized Representative

Page 1 of 2 91362 (8/06)

EQUINE SPECIFIED PERILS POLICY DECLARATIONS PAGE (Continued)

ITEM 3. SCHEDULE OF COVERED HORSES

Name of Horse/Breed Premium / Horse Sire & Dam Coverage Limit of Rate Tax & Surcharge No. Year of Birth (Date if under one year)/sex Description Insurance (if applicable) Use / Ownership Interest

By Authorized Representative

Page 2 of 2 91362 (8/06)

THE INSURANCE COMPANY OF THE STATE OF PENNSYLVANIA (a capital stock company) 2704 COMMERCE DRIVE, SUITE B HARRISBURG, PA 17110

EQUINE SPECIFIED PERILS INSURANCE POLICY DECLARATIONS PAGE

POLICY NUMBER: RENEWAL OF NUMBER:

ITEM 1. NAMED INSURED & MAILING ADDRESS:

ITEM 2. POLICY PERIOD: From: To:

at 12:01 a.m. Standard Time at your mailing address shown above.

ITEM 3. SCHEDULE OF COVERED HORSES LISTED ON THE FOLLOWING PAGE(S)

ITEM 4. PREMIUM: Municipal Tax Premium Surcharge TOTAL Minimum Policy Premium $150.00 Fully earned at inception

ITEM 5. FORMS AND ENDORSEMENTS ATTACHED TO THE POLICY:

ITEM 6. AGENT/PRODUCER NAME & ADDRESS:

By By Countersignature (In States Where Applicable) Authorized Representative

Page 1 of 2 91363 (8/06)

EQUINE SPECIFIED PERILS INSURANCE POLICY DECLARATIONS PAGE (Continued)

ITEM 3. SCHEDULE OF COVERED HORSES

Name of Horse/Breed Premium / Horse Sire & Dam Coverage Limit of Rate Tax & Surcharge No. Year of Birth (Date if under one year)/sex Description Insurance (if applicable) Use / Ownership Interest

By Authorized Representative

Page 2 of 2 91363 (8/06) EQUINE SPECIFIED PERILS INSURANCE POLICY

Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties, and what is and is not covered.

Words and phrases that appear in bold face have special meaning. Refer to Section III. Definitions.

I. COVERAGES

A. SPECIFIED PERILS

We shall indemnify you in the event of either the death or humane destruction of any horse(s) caused by or made necessary from a covered peril, provided that the death or humane destruction occurs either:

1. During the policy period; or

2. If the policy is in effect for at least a period of twelve (12) months, within ninety (90) days after the policy period has expired, provided that the accident, injury, illness, or disease causing the death or humane destruction occurred and was reported to us during the policy period.

B. COVERED PERILS

1. Fire or lightning, or smoke caused by either;

2. collision, derailment, or overturning of railroad conveyances, except as a result of coupling operations;

3. collision, stranding, sinking, or burning of vessels on inland waterways only;

4. collision or overturning of a vehicle conveying a covered horse(s), unless the collision is with or caused by other vehicles owned or operated by, or in the use, custody, or control of: a. you; b. your employees or agents; c. a bailee; d. members of your family; or e. anyone at your direction;

5. collapse of bridges or culverts, earthquakes, and/or floods;

6. windstorm, cyclone, tornado, hail, explosion, aircrafts and objects falling from them; and

7. accidental, external, and violent injury while on board or being loaded into or unloaded from any aircraft or land transport vehicle:

a. licensed for passengers and/or cargo; and b. in transit within the United States of America, its territories and possessions, Puerto Rico, and Canada

C. THEFT OR UNLAWFUL REMOVAL

We shall indemnify you in the event of any of the following:

91365 (1/07) Page 1 of 8

1. Theft of any horse(s);

2. Death or humane destruction as a result of the theft of a horse;

3. Death, humane destruction, or permanent loss of possession as a result of the unlawful removal of any horse(s); or

4. Malicious or willful castration or spaying by or on behalf of whomever is responsible for such theft or unlawful removal of the horse,

Which takes place:

5. Within the United States of America (excluding its territories and possessions or Puerto Rico) or Canada; and

6. During the policy period; or

7. If the policy is in effect for at least a period of twelve (12) months, within ninety (90) days after the policy period has expired, provided that the theft or unlawful removal occurred during the policy period.

Indemnification to you shall be limited to the fair market value of the horse at the time of the accident, injury, illness, disease, or loss causing its death, humane destruction, theft, or unlawful removal up to but not exceeding our Limit of Insurance as shown in the Declarations, Item 3. Schedule of Covered Horses.

II. EXCLUSIONS

This Policy shall not apply to claims arising out of, resulting from, directly or indirectly caused by, or as a consequence of:

A. Any dishonest, fraudulent, criminal, intentional, or malicious act or omission committed by you or by your family, representatives, employees, or any other persons who have care, custody, or control of the horse(s).

This exclusion shall not apply if your family member, representative, employee, or another person with care, custody, or control of the horse is subsequently convicted of a criminal act arising out of the horse's death, unlawful removal, or theft, provided that you had no knowledge of or involvement in the criminal act.

B. 1. Any weapon employing atomic fission or fusion; or

2. Nuclear reaction or radiation, or radioactive contamination from any other cause.

C. 1. War, including undeclared or civil war;

2. Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign, or other authority using military personnel or other agents; or

3. Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these.

D. The use of any horse(s) for any purpose(s) other than those shown in the Declarations, Item 3. Schedule of Covered Horses.

91365 (1/07) Page 2 of 8

E. Any injury which may occur to any covered horse(s) while either being loaded onto or already on board an aircraft with any other animals to which the horse(s) may have a natural dislike or hostility.

F. The intentional slaughter or killing of a horse under the order of any government, public, or local authority or by any person or body who has jurisdiction over the matter or otherwise.

This exclusion shall not apply:

1. If we authorize the destruction of the horse;

2. To humane destruction; or

3. Where the horse is destroyed while on board an aircraft, and such destruction is carried out by or on the order of an authority responsible during that time; provided that the authority later confirms by a sworn statement that, in his/her opinion, the horse was so uncontrollable and dangerous, destruction was necessary to secure the safety of the aircraft, its passengers, crew, or cargo.

G. Mysterious disappearance or escape.

H. Unauthorized instructions to transfer horses to any person or to any location.

I. Any accident, illness, or disease that occurred to a horse, while owned by you, prior to the effective date of this Policy and not disclosed to us or our authorized representative.

J. Any temporary or permanent relinquishment of all or part of your ownership rights to a horse by sale, lease, or any other reason.

III. DEFINITIONS

A. Fair market value means the amount a willing buyer and a willing seller would agree upon, both having reasonable knowledge of relevant facts surrounding the transaction and neither being under any compulsion or obligation to buy or sell.

B. Insured, you or your means the individual(s), partnership, corporation, or organization named in the Declarations.

C. Horse refers to whole or part interest in any horse specified or described in the Declarations, Item 3. Schedule of Covered Horses.

D. Humane destruction means:

1. The destruction of a horse because the horse has incurred an injury or is suffering from an excessively painful disease, provided that a veterinarian, appointed by us, certifies that the horse’s injury or suffering is incurable and so excessive that immediate destruction is necessary; or

2. The destruction of a horse because the horse incurs an injury, provided that a veterinarian, appointed by you, certifies that the horse’s injury is incurable and so excessive that immediate destruction is necessary without prior approval by our appointed veterinarian.

91365 (1/07) Page 3 of 8

E. Veterinarian means a physician or surgeon experienced in equine practice and medicine who has a valid license to practice veterinary medicine in the state or jurisdiction where he or she practices.

F. We, us, and our refer to the Company providing this insurance.

IV. LIMITS OF INSURANCE

The most we shall pay for any one horse specifically described in the Declarations, Item 3. Schedule of Covered Horses is either:

A. The applicable Limit of Insurance shown in the Declarations; or

B. The fair market value;

Whichever amount is less.

V. CONDITIONS

A. COVERAGE TERRITORY

Unless otherwise specified, this Policy applies to the United States of America, its territories and possessions, Puerto Rico, and Canada, provided that the covered horse(s) remain within such Coverage Territory throughout the policy period.

B. CHANGES

This Policy contains all the agreements between you and us concerning this insurance. The first named Insured in the Declarations is authorized to request changes in this Policy. This Policy can only be changed by a written endorsement we issue and make part of this Policy.

C. DUTIES IN THE EVENT OF THEFT

Coverage C. Theft or Unlawful Removal shall apply provided that:

1. Prior to the inception date of this Policy no thefts, attempted thefts, or threats of theft were made against you or your horse(s).

2. You notify us immediately if theft or unlawful removal occurs. Our obligation to indemnify you for theft or unlawful removal of the horse shall begin ninety (90) days from the date you advises us of the theft or unlawful removal, provided that the horse was not recovered in that time.

3. The theft or unlawful removal of any horse is reported immediately, but no later than twenty-four (24) hours, to the appropriate law enforcement agencies. You must comply with their instructions or recommendations, but in no case must you:

a. Pay or promise to pay ransom; or

b. Give any third party assurances of your intent to pay.

We shall be released from any obligation to indemnify you for theft or unlawful removal of the horse if you do either 3.a. or 3.b. above.

91365 (1/07) Page 4 of 8

4. Coverage on a female horse (mare) shall not include any of her foals or an embryo within the female, unless such foal or embryo is separately insured under this Policy.

D. RECOVERY OF HORSES

We shall have the right to title and possession of any horse that:

1. Has been recovered after theft;

2. We have paid a claim prior to the horse’s recovery; and

3. You fail to return the payment of a claim to us.

E. CONFORMANCE TO STATUTE

To the extent a clause of this Policy conflicts with a statute of the state or country within which this Policy is issued, the clause shall be deemed amended so as to conform to minimum requirements of the statute.

F. PREMIUMS

The first named Insured shown in the Declarations:

1. Is responsible for the payment of all premiums; and

2. Will be the payee for any return premiums we pay.

G. TRANSFER OF YOUR RIGHTS AND DUTIES UNDER THIS POLICY

Your rights and duties under this Policy may not be transferred without our written consent. If you are declared legally bankrupt, your rights and duties shall be transferred to your legal representative but only while acting within the scope of his duties as your legal representative.

H. FULL PREMIUM IF LOSS

In the event of a loss of any covered horse(s) that are added to the Declarations, Item 3. Schedule of Covered Horses after the inception date of this Policy at a pro rata additional premium, or if the pro rata premium was paid with respect to the horse(s) originally listed in the Declarations, Item 3. Schedule of Covered Horses, you shall pay the difference between the actual premium paid with respect to such horse(s) and the full annual premium calculated at the full annual rate on the amount insured with respect to such horse(s).

I. APPRAISAL

If you and we disagree on the value of a horse or the amount of loss, either may make written demand for an appraisal. In this event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire. If they cannot agree on an umpire, either may request that selection be made by a judge of a court having jurisdiction. The appraisers will state separately the value of the horse and amount of loss. If they agree, they will submit their difference to the umpire. A decision by the umpire which is agreed to by either of the two appraisers will be binding. Each party will:

1. Pay its chosen appraiser; and

2. Bear the other expenses of the appraisal and umpire equally.

91365 (1/07) Page 5 of 8

If there is an appraisal, we will still retain our right to deny the claim.

J. DUTIES IN THE EVENT OF ACCIDENT, ILLNESS, INJURY, DEATH, UNLAWFUL REMOVAL, OR THEFT

1. You must see to the following in the event of accident, illness, injury, death, unlawful removal, or theft of a horse:

a. Immediately notify the appropriate law enforcement agency if a law may have been broken.

b. Give us or our authorized representative immediate notice of the accident, illness, injury, death, unlawful removal, or theft, including a description of the horse involved.

c. Employ a veterinarian, at your expense, to treat the horse. If necessary, allow the horse to be removed to an appropriate facility of our choosing for proper treatment, at your expense.

d. In case of the horse’s death, have a postmortem examination done, at your expense, by a veterinarian approved by us or our authorized representative.

e. Allow us to inspect and examine the horse and any relevant records.

f. Send us:

i. The death certificate; and

ii. The postmortem examination report; and

iii. A signed sworn proof of loss containing information we request so that we may investigate the claim. You must provide us with this statement within sixty (60) days of the death, humane destruction, unlawful removal, or theft.

g. Cooperate with us in the investigation and/or settlement of the claim.

h. You shall be responsible for the disposal of any horse’s remains, at your expense and with our approval.

2. Once we have received the sworn proof of loss, we shall pay for a covered claim, provided:

a. You have complied with all terms of this Policy;

b. We have reached an agreement with you on the amount of loss or an appraisal agreement has been reached; and

c. You have paid the premium of this Policy.

91365 (1/07) Page 6 of 8

K. SOLE OWNER

It is a condition precedent of this Policy that, as of the effective date of this Policy, you are the sole owner of each covered horse, or with respect to syndicated or partnership owned horses, you are the sole owner of the stated interest in such covered horse. Sole ownership includes you acting as an authorized agent for one or more owners of the horse or the stated interest of the horse.

In the event that your covered interest or the covered interest by you acting as an authorized agent is terminated or reduced, the coverage provided under this Policy shall automatically be reduced proportionately, unless you have contracted to maintain the coverage for the new owner of the horse or stated interest.

L. OTHER INSURANCE

If at the time of death, humane destruction, unlawful removal, or theft of a covered horse, you have other insurance for that horse, whether or not valid or collectible, we shall be released from any liability or obligation to indemnify with respect to that horse, unless we have agreed by endorsement to the procurement of the other insurance.

If we agree to the other insurance, then we shall only be responsible for our proportion of the fair market value in the same ratio as our Limit of Insurance bears to the total amount of all insurance, whether or not valid or collectible, on the covered horse for its death, humane destruction, unlawful removal, or theft.

M. RACING OR AUCTION OF HORSES

If at any time during the policy period any horse is:

1. Raced in any claiming race and the claiming price is less than our Limit of Insurance, our Limit of Insurance for such horse shall automatically be reduced to a sum not exceeding the lowest amount for which the horse could have been claimed or sold in the race; or

2. Entered into a public auction, but not sold, and our Limit of Insurance exceeds the highest bid at such auction, then you shall notify us within seven (7) days of the auction and shall prove any Limit of Insurance that exceeds the highest bid at the public auction, or our Limit of Insurance shall be automatically reduced, after the seven (7) days, to the highest amount bid at the auction.

In the event that our Limit of Insurance is reduced, you shall be entitled to a return of premium on the amount by which this Policy shall have been reduced, calculated on a pro rata basis from the date of such reduction.

N. ABANDONMENT

There shall be no abandonment of any horse(s) to us.

O. TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US

If any person or organization to or for whom we make payment under this Policy has rights to recover damages from another, those rights are transferred to us to the extent of our payment. That person or organization must do everything necessary to secure our rights and must do nothing to impair them.

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P. CONCEALMENT, MISREPRESENTATION, OR FRAUD

This coverage shall be void in any case of fraud by you as it relates to this Policy at any time. It is also void if you, at any time, intentionally conceals or misrepresents a material fact concerning:

1. This Policy;

2. The horse;

3. Your interest in the horse; or

4. A claim under this Policy.

Q. LEGAL ACTION AGAINST US

No one may bring a legal action against us under this Policy unless:

1. There has been full compliance with all the terms of this Policy; and

2. The action is brought within one (1) year after the date on which the death, humane destruction, unlawful removal, or theft of the horse occurred.

R. NO BENEFIT TO BAILEE

No person or organization, other than you, having custody of the horse, shall benefit from this insurance.

S. CANCELLATION

This Policy may be canceled by you by surrendering it to us or any of our authorized agents or by mailing to us written notice stating when thereafter the cancellation shall be effective. However, if we cancel this Policy because the you have failed to pay a premium when due, this Policy may be canceled by us by mailing a written notice of cancellation to you at the address shown in this Policy stating when, not less than ten (10) days thereafter, such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice.

The time of the surrender or the effective date and hour of cancellation stated in the notice shall become the end of the policy period. Delivery of such written notice either by you or by us shall be equivalent to mailing. If cancelled, the unearned premium shall be computed pro rata, subject to a minimum earned premium of $150.00. Premium adjustment may be made either at the time cancellation is effected or as soon as practicable after cancellation becomes effective, but payment or tender of unearned premium is not a condition of cancellation.

If a loss is paid on a covered horse whether by settlement, compromise, or otherwise, no return of premium shall be allowed in respect of the covered horse.

T. TITLES OF PARAGRAPHS

Titles of paragraphs are inserted solely for convenience of reference and shall not be deemed to limit, expand, or otherwise affect the provisions to which they relate.

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ENDORSEMENT

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement, effective at 12:01 A.M. forms a part of

Policy No. Issued to:

By:

OPTIONAL PERILS ENDORSEMENT

This endorsement modifies insurance provided under the following:

EQUINE SPECIFIED PERILS INSURANCE POLICY

This coverage ONLY applies to those horses for which a specific premium charge for Optional Perils is indicated in the Declarations, Item 3. SCHEDULE OF COVERED HORSES.

Section I. COVERAGES

Paragraph A. SPECIFIED PERILS

The following are added as COVERED PERILS:

1. accidental shooting except by: a. you; or b. your employees or agents; or c. bailee; or d. members of your family; or e. anyone at your direction; 2. drowning; 3. artificial electricity; 4. attack by dogs or wild animals (visible, external evidence of attack is required); or

5. collapse of building.

All other terms, conditions, and exclusions of the policy shall remain unchanged.

AUTHORIZED REPRESENTATIVE

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ENDORSEMENT

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement, effective at 12:01 A.M. forms a part of

Policy No. Issued to:

By:

LOSS PAYABLE ENDORSEMENT

This endorsement modifies insurance provided under the following:

EQUINE SPECIFIED PERILS INSURANCE POLICY

This endorsement ONLY applies to those horses for which a Loss Payee is specifically indicated in the Declarations, Item 3. Schedule Of Covered Horses.

Any loss by death or humane destruction shall be adjusted with you and shall be payable to you and the Loss Payee described in the Declarations, Item 3. Schedule Of Covered Horses as your and their interest appear.

All other terms, conditions, and exclusions of the policy shall remain unchanged.

AUTHORIZED REPRESENTATIVE

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