<p>The ALLIEDBANKERS INSURANCE CORPORATION (hereinafter called &quot;the Company&quot;) agrees with the Insured, named in the declarations made a part hereof, in consideration of the payment of the premium and in reliance upon the statements in the declarations and subject to the limits of properties, exclusions, conditions and other terms of the policy.</p>

<p>P O L I C Y &nbsp;C O N D I T I O N</p>

<p>1. &nbsp;MISREPRESENTATION AND FRAUD. This policy shall be void if the Assured has concealed or misrepresented any material factor or circumstances concerning the insurance or the subject thereof or in case of any fraud, attempted fraud or false swearing by the Assured touching any matter relating to this insurance or the &nbsp;subject thereof, whether before or after a loss.</p>

<p>2. &nbsp;VALUATION. &nbsp;Unless otherwise provided in form attached, this Company shall not be liable beyond the actual value of the property as the time any loss of or damage occurs and the loss or damage shall be ascertained or estimated according to such actual cash value with proper deduction for depreciation, however caused, and shall in no event exceed what it would then cost to repair or replace the same with material of like kind and quality.</p>

<p>3. &nbsp;PAIR AND SET. &nbsp;It is understood and agreed that, in the event of loss of, or damage to any article or articles which are a part of a set, the measure of loss of or damage to such article shall be a reasonable and fair proportion of the total value of the set, giving consideration to the importance of said article or articles, but in no event shall such loss or damage be construed to mean total loss of set.</p>

<p>4. &nbsp;PARTS. &nbsp;In case of loss or injury to any part of the insured property consisting when complete for sale or use, of several parts, this Company shall only be liable for the insured value of the part lost or damaged.</p>

<p>5. &nbsp;SUE AND LABOR. In case of loss or damage, it shall be lawful and necessary for the Assured, his or their factors, servants and assigns, to sue, labor, and travel for, in and about the defense, safeguard and recovery of the property insured hereunder, or any part thereof without prejudice to this insurance, nor shall the acts of the Assured or this Company, in recovering, saving and preserving the property insured in case of loss or damage, be considered a waiver or an acceptance of abandonment to the charge whereof this Company will contribute according to the rate and quantity of the sum herein insured.</p>

<p>6. &nbsp;NOTICE OF LOSS. &nbsp;The Assured shall as soon as practicable report to this Company every loss or damage which may become a claim under this policy and shall also file with the Company within &nbsp;ninety (90) days from the date of loss a detailed sworn proof of loss. Failure by the &nbsp;Assured either to report the said loss or damage or to file such sworn proof of loss as hereinbefore &nbsp;provided shall not invalidate any claim under this policy if it shall be shown not to have been reasonably possible to give such report and proof of loss and that the same were given as soon as reasonably possible.</p>

<p>7. &nbsp;DOUBLE RECOVERY. No loss shall be paid hereunder if the Assured has collected the same from others.</p>

<p>8. &nbsp;PAYMENT OF LOSS. All adjusted claims shall be paid or made good to the Assured within sixty (60) days after the presentation and acceptance of satisfactory proof of interest and loss at the office of this Company.</p>

<p>9. &nbsp;REINSTATEMENT. &nbsp;Every claim paid hereunder reduces the amount insured by the sum so paid unless the same be reinstated by payment of additional premium thereon.<br />
&nbsp;&nbsp; &nbsp;<br />
10. EXAMINATION UNDER OATH. &nbsp;The Assured shall submit, &nbsp;and so far as is within his or their power shall cause all other persons interested in the property and members of the household and employees to submit, to examinations under oath by any persons named by the Company to take such deposition and to subscribe the same, and shall produce for examination all books of accounts, bills, invoices, and other vouchers or certified copies thereof if originals be lost, at such reasonable time and place as may be designated by the Company or its representatives and shall permit extracts and copies thereof to be made.</p>

<p>11. ARBITRATION CLAUSE. All differences as to the amount of any loss or damage covered by this Policy shall be referred to the decision of an arbitrator to be appointed by the parties in difference or if they cannot agree upon a single arbitrator to the decision of two arbitrators one to be appointed in writing &nbsp;by each of the parties within thirty (30) days after having been required in writing so to do by either of the parties or in case of disagreement between the arbitrators to the decision of an umpire to be appointed in writing by the arbitrators before entering on the reference and an award by the arbitrator &nbsp;or arbitrators or umpire shall be a condition precedent to any right of action against the Company only in cases of differences as to amount of liability actually arising out of this policy.</p>

<p>12. BENEFIT OF INSURANCE. This insurance shall in no wise inure directly to the benefit of any carrier or other bailee.</p>

<p>13. SUBROGATION. In the event of any payment under this policy the Company shall be subrogated to all the Assured&#39;s rights of recovery therefor against any person or organization and the Assured shall Execute and deliver instruments and papers and do whatever, else is necessary to secure such rights. The Assured shall do nothing after loss to prejudice such rights.</p>

<p>14. SUIT AGAINST THE COMPANY. &nbsp;If a claim be made and rejected and an action or suit be not commenced either in the Insurance Commission or any Court of competent jurisdiction within twelve (12) months form receipt of notice of such rejection or in case of arbitration taking place as provided herein, within twelve (12) months after due notice of the award made by the arbitrator or arbitrators or umpire, then the claim shall for all purposes be deemed to have been abandoned and shall not thereafter be recoverable hereunder.</p>

<p>15. CANCELLATION. &nbsp;This Policy shall not be cancelled by or on behalf of the Company except in accordance with and pursuant to the provisions of Sections 64 and 65 of the Insurance Code. &nbsp;In the event of such cancellation, the Company shall refund the paid premiums less the earned portion thereof to the Assured. Likewise, this Policy may be cancelled on the short rate basis set forth in the short rate cancellation table at the request of the Assured.</p>

<p>16. RENEWAL. &nbsp;Unless the Company at least forty-five days in advance of the end of the policy period mails or delivers to the Assured at the address shown in the policy notice of its intention not to renew the Policy or to condition its renewal upon reduction of limits or elimination of coverages, the Assured shall be entitled to renew the Policy upon payment of the premium due on the effective date of renewal.</p>

<p>17. SETTLEMENT OF CLAIM. The amount of any loss or damage for which the Company may be liable under this Policy shall be paid within thirty (30) days after proof or loss is received by the Company and ascertainment of the loss or damage is made either by agreement between the Assured and the Company or by arbitration; but if such ascertainment is not had or made within sixty (60) days after such receipt by the Company of the proof of loss, then the loss or damage shall be paid within ninety (90) days after such receipt.</p>

<p>18. CHANGES IN POLICY. &nbsp;None of the provisions, conditions and terms of this policy shall be waived or altered except by endorsement signed or initialed by an authorized official of the Company and issued in accordance with the provisions of Section 50 of the Insurance Code.</p>

<p>19. SHORT PERIOD RATE SCALE. &nbsp;It is hereby agreed that, in the event of this Policy being surrendered by the Assured for cancelment, the Company shall retain a premium in accordance with the following scale for the time the Policy has been in force.</p>

<p>&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;For &nbsp;&nbsp; &nbsp;1 month or less&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;20 per cent. Of the Annual Rate<br />
&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;For &nbsp;&nbsp; &nbsp;2 Months&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;30 per cent. Of the Annual Rate<br />
&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;For&nbsp;&nbsp; &nbsp;3 Months&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;40 per cent. Of the Annual Rate<br />
&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;For &nbsp;&nbsp; &nbsp;4 Months&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;50 per cent. Of the Annual Rate<br />
&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;For &nbsp;&nbsp; &nbsp;5 Months &nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;60 per cent. Of the Annual Rate<br />
&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;For &nbsp;&nbsp; &nbsp;6 Months&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;70 per cent. Of the Annual Rate<br />
&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;For&nbsp;&nbsp; &nbsp;7 Months&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;75 per cent. Of the Annual Rate<br />
&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;For &nbsp;&nbsp; &nbsp;8 Months &nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;80 per cent. Of the Annual Rate<br />
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; For &nbsp;&nbsp; &nbsp;9 Months&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;85 per cent. Of the Annual Rate<br />
&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;For &nbsp; &nbsp;10 Months&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;90 per cent. Of the Annual Rate<br />
&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;For &nbsp; &nbsp;11 Months&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;95 per cent. Of the Annual Rate<br />
&nbsp;&nbsp; &nbsp;<br />
20.&nbsp;&nbsp; &nbsp;CIVIL CODE WAIVER. IT IS HEREBY DECLARED AND AGREED that the provision of Article 1250 of the Civil Code of the Philippines (Republic Act No. 386) which reads:<br />
&nbsp;&nbsp; &nbsp;&ldquo;In case an extraordinary inflation or deflation of the currency stipulated should supervene, the value of the currency at the time of the establishment of the obligation shall be the basis of payment. &ldquo;shall not apply in determining the extent of liability under the provision of this Policy.</p>

<p>21.&nbsp;&nbsp; &nbsp;NUCLEAR EXCLUSION. &nbsp;This Policy does not cover<br />
(a)&nbsp;&nbsp; &nbsp;loss of destruction of or damage to any property whatsoever or any loss or expense whatsoever resulting or arising there from or any consequential loss,<br />
(b)&nbsp;&nbsp; &nbsp;any legal liability of whatsoever nature directly or indirectly caused by or contributed to by or arising from ionising radiations &nbsp;or contamination by radioactivity from any nuclear fuel or &nbsp;from any nuclear waste from the combustion of nuclear fuel. &nbsp;For the purpose of this exclusion only combustion shall include any self-sustaining process of nuclear fission.</p>

<p>The indemnity provided by this Policy shall not apply to nor include any loss, destruction, damage, or legal liability directly or indirectly caused by or contributed to by or arising from nuclear weapons material.&nbsp;<br />
&nbsp;&nbsp;&nbsp; &nbsp;<br />
IMPORTANT NOTICE<br />
The Insurance Commission, with offices in Manila, Cebu and Davao, is the government agency in charge of the faithful execution and enforcement of all laws relating to Insurance and has supervision over insurance companies. That office is ready at all times to render assistance in settling any controversy between an Insurance Company and a Policyholder relating to insurance matters.</p>
