LLOYD’S AIRCRAFT HULL POLICY (U.S.A.

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WE, UNDERWRITERS AT LLOYD’S, London, agree 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 liability,
Exclusions, Conditions and other Terms of this Policy:-

INSURING AGREEMENTS
1. COVERAGE A —FLIGHT, TAXYING, ON THE GROUND OR MOORED
To pay for direct physical loss of or damage to the Aircraft including disappearance if the
Aircraft is unreported for sixty (60) days after the commencement of flight but only for the
amount of each separate loss less the applicable deductible stated in Item 3 of the
Declarations.
2. COVERAGE B—TAXYING, ON THE GROUND OR MOORED
To pay for direct physical loss of or damage to the Aircraft while not in flight but only for the
amount of each separate loss less the applicable deductible stated in Item 3 of the
Declarations.
3. COVERAGE C—ON THE GROUND OR MOORED
To pay for direct physical loss of or damage to the Aircraft while not in flight or taxying but
only for the amount of each separate loss less the applicable deductible stated in Item 3 of the
Declarations.
4. POLICY PERIOD, TERRITORY, PURPOSES OF USE
This Policy applies only to direct physical loss of or damage to the Aircraft which is sustained
during the Policy period while the Aircraft is within the Continental limits of the United
States of America (excluding Alaska), Canada, or the Republic of Mexico, or is being
transported between ports thereof, and is owned, maintained and used for the purpose stated
as applicable thereto in the Declarations.
5. TWO OR MORE AIRCRAFT
When two or more Aircraft are insured hereunder the terms of this Policy shall apply
separately to each.

EXCLUSIONS
THIS POLICY DOES NOT APPLY:-
(a) to loss of use, depreciation, or deterioration; nor to any damage which is due and
confined to wear and tear, freezing, mechanical, structural, electrical, hydraulic or
pneumatic breakdown or failure, but this exclusion shall not apply to (1) other loss or
damage covered by this Policy resulting from such wear and tear, freezing, mechanical,
structural, electrical, hydraulic or pneumatic breakdown, (2) such loss or damage by
wear and tear, freezing, mechanical, structural, electrical, hydraulic or pneumatic
breakdown or failure which results directly from other loss covered by this Policy.

AVN 16 6.11.56

(b) to loss or damage due to (1) capture, seizure, arrest, restraint or detention or the
consequences thereof or of any attempt thereat, or any taking of the property insured or
damage to or destruction thereof by any Government or Governmental or Civil
 Authority or agent (whether secret or otherwise) or by any military, naval or usurped
power, whether any of the foregoing be done by way of requisition or otherwise and
whether in time of peace or war and whether lawful or unlawful; (2) war, invasion,
civil war, revolution, rebellion, insurrection or warlike operations, whether there be a
declaration of war or not; (3) strikes, riots or civil commotions.

(c) to loss or damage due to wrongful conversion, embezzlement or secretion of the

Aircraft by any person in lawful possession thereof under a licence, lease, mortgage,
conditional sale or other agreement, or under an agreement with the Insured, whether
written, oral or implied.

(d) while the Aircraft is in flight unless its Airworthiness Certificate is in full force and
effect.

(e) while the Aircraft is used for any unlawful purpose or is operated otherwise than in
compliance with the terms of its Airworthiness Certificate and the approved operating
limitations contained in its Airplane Flight Manual or other documents associated with
the Airworthiness Certificate, or is being operated by any person other than the pilot(s)
stated in Item 5 of the Declarations (other than taxying by certificated pilots or licensed
mechanics) or is operated by any such person in violation of the terms and limitations
of his Pilot’s Certificate or Medical Certificate, as issued by the appropriate authority.

(f) if the total number of passengers carried in the Aircraft at the time of the happening of
any loss or damage exceeds the Declared Maximum Number of Passengers stated in
Item 3 of the Declarations.

(g) while with the knowledge and consent of the Insured or of any executive officer or
partner if the Insured be a corporation or partnership the Aircraft is being operated in
violation of the Civil Air Regulations applying to acrobatic flying, instrument flying,
repairs, maintenance, inspection, alterations and night flying.

(h) while the Aircraft is used for any purpose other than as stated in the Declarations.

(j) while the Aircraft is being used for or in connection with any race, speed or endurance
test, any attempt at record breaking, acrobatic flying, crop dusting, spraying, seeding,
fertilisation, hunting, bird or fowl herding, unless such use is declared in (D) of Item 4
of the Declarations; or any use in respect to which a waiver or special authority issued
by the Civil Aeronautics Authority or the appropriate Authority is required, whether
granted or not.

(k) while the Aircraft is changed or converted into a type other than that stated in the
Declarations.

(l) following a transfer of the interest of the Insured in the Aircraft without the written
consent of the Underwriters; or whilst the Aircraft is subject to any lien, mortgage or
other encumbrance not specifically declared and described in this Policy.

DEFINITIONS

“AIRCRAFT”. The word “Aircraft” wherever used in this Policy, shall mean the Aircraft
described herein, and in addition to the airframe shall include power plants, propellers,
rotors and appliances forming part of the Aircraft at the inception of coverage
hereunder, including parts detached and not replaced by other similar parts.
“IN FLIGHT”. The Aircraft shall be deemed to be in flight from the time the Aircraft moves
forward in taking off or in attempting to take off for air transit, while in the air and until
the Aircraft comes to rest after landing or, the landing run having been safely
completed, power is applied for taxying. A rotorcraft shall be deemed to be in flight
when the rotors are in motion.

“TAXYING” shall mean while the Aircraft is moving under its own power or momentum
generated thereby other than in flight as defined, but in the case of water alighting
 Aircraft “Taxying” shall be deemed to mean while the Aircraft is afloat and is not “In
Flight” or “Moored.”

“MOORED” shall mean while the Aircraft is afloat and made fast to its moorings, or is being
launched or hauled up.

“CIVIL AERONAUTICS AUTHORITY” shall mean the duly constituted Authority of the
government of the United States of America, or the authority of the recognized
government of any other country in which this Policy may apply, having jurisdiction
over Civil Aviation.

CONDITIONS
1. INSURED’S DUTIES WHEN LOSS OCCURS
When loss occurs, the Insured shall:
(a) take all reasonable measures to protect the Aircraft, whether or not the loss is
covered by this Policy, and any further loss due to the Insured’s failure to do so
shall not be recoverable under this Policy; reasonable expense incurred in
affording such protection, provided the loss is covered by this Policy, shall be
deemed incurred at the Underwriters’ request.

(b) give notice thereof as soon as practicable to the Underwriters and also in the
event of theft, larceny, robbery, pilferage or vandalism, to the Police. The
Underwriters shall not be responsible for the payment of a reward offered for the
recovery of the insured property unless authorised by the Underwriters or their
representatives.

(c) file proof of loss with the Underwriters’ representatives within sixty (60) days
after the occurrence of loss, unless such time is extended in writing by the
Underwriters, in the form of a sworn statement of the Insured setting forth the
interest of the Insured and of all others in the property affected, any
encumbrances thereon, the actual cash value thereof at the time of loss; the
amount, place, time and cause of such loss, the amount of all insurance whether
valid and collectible or not, covering said property; and the Insured as often as
required shall submit to examination under oath by any person named by the
Underwriters and subscribe the same; upon the request of the Underwriters the
Insured shall exhibit the damaged property to the Underwriters or their
representatives, and as often as required shall produce for examination all
logbooks, and all books of accounts, bills, invoices, and other vouchers, or
certified copies thereof if the originals be lost, at such reasonable place as may
be designated by the Underwriters or their representatives and shall permit
extracts and copies thereof to be made.
2. ASSISTANCE AND CO-OPERATION OF THE INSURED
The Insured shall co-operate with the Underwriters and, upon the Underwriters’
request, shall attend hearings and trials and shall assist in effecting settlements, securing and
giving evidence, obtaining the attendance of witnesses and in the conduct of suits. The
Insured shall not, except at his own cost, voluntarily make any payment, assume any
obligation or incur any expense.

3. LIMIT OF LIABILITY; SETTLEMENT OPTIONS; NO ABANDONMENT

The liability of the Underwriters for direct physical loss of or damage to the Aircraft
shall not exceed the amount of insurance set out in the Declarations, less the applicable
deductible, nor what it would cost to repair or replace the Aircraft or parts thereof with other
of like kind and quality, and without compensation for loss of use. The Underwriters may pay
for the loss in money or may repair or replace the Aircraft or parts thereof, as aforesaid, or
may return any stolen property with payment for any resultant damage thereto at any time
before the loss is paid or the property is so replaced, or may take all or such part of the
Aircraft at the agreed or appraised value, but there shall be no abandonment to the
Underwriters.

In the case of partial physical loss of or damage to the Aircraft when repairs are
effected by the Insured the liability of the Underwriters shall not exceed the actual cost of any
parts or materials necessary to effect repairs or replacement plus 150% of the actual cost of
labour to the Insured without any further allowance for overhead or overtime; when the
repairs are made by other than the Insured, the actual costs as evidenced by bills rendered to
the Insured, less any discount granted to the Insured, excluding cost of overtime and its
related overhead unless previously agreed to by the Underwriters. The amount of such loss
shall include the cost of transporting new or damaged parts or of transporting the damaged
Aircraft to the place of repair and subsequent return to the airport nearest to the place of
accident, or home airport, whichever be the nearer, but shall be limited to the least expensive
method of reasonable transportation.

In no event shall the liability of the Underwriters for partial physical loss of or damage
to the Aircraft exceed the amount for which the Underwriters would be liable were the loss
payable as a total loss.

4. SUBSTITUTIONS
Power plant and/or propellers and/or rotors and/or appliances of like make or type may
be substituted. The value of any such installed substituted item shall not exceed the value of
the item originally installed unless endorsed hereon and any required additional premium paid
hereon.

5. APPRAISAL
If the Insured and the Underwriters fail to agree as to the amount of loss, each shall, on
the written demand of either, made within sixty days after receipt of proof of loss by the
Underwriters, select a competent and disinterested appraiser, and the appraisal shall be made
at a reasonable time and place. The appraisers shall first select a competent and disinterested
umpire, and failing for fifteen days to agree upon such umpire, then on request of the Insured
or the Underwriters, such umpire shall be selected by a judge of a court of record in the
county and state in which such appraisal is pending. The appraisers shall then appraise the
loss, stating separately the actual cash value at the time of the loss and the amount of loss in
respect of each item, and failing to agree, shall submit their differences to the umpire. An
award in writing of any two shall determine the amount of loss. The Insured and the
Underwriters shall each pay his or their chosen appraiser and shall bear equally the other
expenses of the appraisal and umpire.

The Underwriters shall not be held to have waived any of their rights by any act
relating to appraisal.
6. OTHER INSURANCE
If there be other insurance against loss or damage covered by this Policy, the
Underwriters shall not be liable under this Policy for a greater proportion of such loss or
damage than the amount of insurance stated in the Declarations bears to the total amount of
valid and collectible insurance against such loss or damage.

7. NO BENEFIT TO BAILEE
The insurance afforded by this Policy shall not enure directly or indirectly to the benefit
of any carrier or bailee.

8. REINSTATEMENT
In the event of loss whether or not covered by this Policy the amount of insurance in
respect to any Aircraft shall be reduced as of the time and date of loss by the amount of such
loss and such reduced value shall continue until repairs are commenced. The insurance shall
then be increased by the value of the completed repairs until the amount of insurance is fully
reinstated or the Policy has expired.

9. SUBROGATION
In the event of any payment under this Policy, the Underwriters shall be subrogated to
all the Insured’s rights of recovery therefor against any person or organization and the Insured
shall execute and deliver instruments and papers and do whatever else is necessary to secure
such rights. The Insured shall do nothing after loss to prejudice such rights.

10. CHANGES
Notice to any agent or knowledge possessed by any agent or by any other person shall
not effect a waiver or a change in any part of this Policy or estop the Underwriters from
asserting any right under this Policy; nor shall any part of this Policy be waived or changed,
except by endorsement signed by the Underwriters and issued to form part of this Policy.

11. ASSIGNMENT
This Policy shall not be assigned in whole or in part except with the consent of the
Underwriters verified by endorsement signed by the Underwriters and issued to form part of
this Policy; if, however, the Insured shall die or be adjudged bankrupt or insolvent within the
Policy period, this Policy, unless cancelled, shall, if written notice be given to the
Underwriters within thirty days after the date of such death or adjudication, cover the
Insured’s legal representative as the Insured.

12. CANCELLATION
This Policy may be cancelled by the Insured by surrender thereof or by mailing to the
Underwriters written notice stating when thereafter such cancellation shall be effective. This
Policy may be cancelled by the Underwriters by mailing to the Insured at the address shown
in this Policy written notice stating when not less than ten days thereafter such cancellation
shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice and 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 the Insured or by the Underwriters shall be
equivalent to mailing.

If the Insured cancels, earned premiums shall be computed in accordance with the
customary short rate table and procedure. If the Underwriters cancel, earned premiums shall
be computed pro rata. Premium adjustment may be made at the time cancellation is effected
and, if not then made, shall be made as soon as practicable after cancellation becomes
effective. The Underwriters’ check or the check of their representative mailed or delivered as
aforesaid shall be sufficient tender of any refund of premium due to the Insured.

No Return Premium shall be paid to the Insured as to any Aircraft on which a loss under this
Policy, adjustable on the basis of a total loss, has occurred.
13. TERMS OF POLICY CONFORMED TO STATUTE
Terms of this Policy which are in conflict with the statutes of the state wherein this
Policy has application are hereby amended to conform to such statutes.

14. ACTION AGAINST UNDERWRITERS

No action shall lie against the Underwriters unless as a Condition precedent thereto the
Insured shall have fully complied with all the terms of this Policy nor until sixty days after
proof of loss shall have been filed and the amount of loss shall have been determined as
provided in this Policy nor unless such action shall have been commenced within twelve
months next after the happening of the loss.

15. SERVICE OF SUIT

It is agreed that in the event of the failure of the Underwriters to pay any amount
claimed to be due hereunder, the Underwriters, at the request of the Insured, will submit to the
jurisdiction of any Court of competent jurisdiction within the United States and will comply
with all requirements necessary to give such Court jurisdiction and all matters arising
hereunder shall be determined in accordance with the law and practice of such Court.

It is further agreed that service of process in such suit may be made upon
, and
that in any suit instituted against any one of them upon this Policy, the Underwriters will
abide by the final decision of such Court or of any Appellate Court in the event of an appeal.

The above-named are authorised and directed to accept service of process on behalf of
the Underwriters in any such suit and/or upon the request of the Insured to give a written
undertaking to the Insured that they will enter a general appearance upon the Underwriters’
behalf in the event such a suit shall be instituted.

Further, pursuant to any statute of any state, territory or district of the United States
which makes provision therefor, the Underwriters hereby designate the Superintendent,
Commissioner or Director of Insurance or other officer specified for that purpose in the
statute or his successor or successors in office, as their true and lawful attorney upon whom
may be served any lawful process in any action, suit or proceeding instituted by or on behalf
of the Insured or any beneficiary hereunder arising out of this Policy and hereby designate the
above-named as the person to whom the said officer is authorised to mail such process or a
true copy thereof.

16. SCHEDULE OF STATEMENTS

By acceptance of this Policy the Insured agrees that the statements in the Declarations
are his agreements and representations, that this Policy is issued in reliance upon the truth of
such representations and that this Policy embodies all agreements existing between himself
and the Underwriters relating to this insurance.

17. MISREPRESENTATION AND FRAUD

This Policy shall be void if the Insured has concealed or misrepresented any material
fact or circumstance whether under the Declarations or not concerning this insurance or the
subject thereof or in case of any fraud, attempted fraud or false swearing by the Insured
touching any matter relating to this insurance or the subject thereof, whether before or after a
loss.

DECLARATIONS
ITEM 1
Name of Insured..............................................................................................................................................
(hereinafter referred to as the Insured.)
 Address...........................................................................................................................................................

Business or Occupation of the Insured is........................................................................................................

The Insured’s interest in the Aircraft is that of...............................................................................................

Amount of Mortgage or Encumbrance, if any, $............................................................................................

If the Aircraft is mortgaged or encumbered any loss covered hereunder is payable as

interest may appear to the Insured and...........................................................................................................

ITEM 2
The period of insurance hereunder begins on the...........................................................................................

and ends on the .................................................. (both at 12.01 a.m.

Standard Time at the Insured’s address as stated.)

ITEM 3
The insurance afforded is only with respect to such and so many of the following coverages as
are indicated by specific premium charge or charges. The limit of Underwriters’ liability against
each such coverage shall be the amount of insurance as stated herein, (less the stated deductible
each loss each Aircraft) subject to all the terms of the Policy having reference thereto;
COVERAGES (As described in the Insuring Agreements)
(A) Flight, Taxying, On the Ground or Moored.
(B) Taxying, On the Ground or Moored.
(C) On the Ground or Moored.

DESCRIPTION OF AIRCRAFT AND AMOUNT OF INSURANCE

Identification Category Year built, Make, Model, Type *

Marks Serial No.

* Landplane, seaplane, skiplane, amphibian or rotorcraft.

PREMIUM
Engine, H.P., Amount of Insurance Declared Maximum
Make, Model Number of
Passengers to be Coverage
carried at any one
time A B C

$ $ $

$ $ $

$ $ $

TOTAL PREMIUM $
DEDUCTIBLES

Flight $ 

Not applicable to Total Loss of the Aircraft.
Taxying $ 

Ground $  Not applicable to Total Loss of the Aircraft, or fire


Moored $  or theft.

In the case of rotorcraft the Flight Deductible shall apply while the rotors are in motion.

ITEM 4
USE: The purposes for which the Aircraft will be used are (Indicate those required.)

(A) ‘‘BUSINESS AND PLEASURE’’

(B) ‘‘INDUSTRIAL AID’’

(C) ‘‘LIMITED COMMERCIAL’’

(D) ‘‘COMMERCIAL’’, including special uses (See (D) below)

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(A) ‘‘BUSINESS AND PLEASURE’’ shall mean personal, pleasure, family and business
use, excluding any operation for hire or reward, or for instruction.
(B) ‘‘INDUSTRIAL AID’’ shall mean all the uses stated in (A) also the transportation of
executives, employees, guests of the Insured, goods and merchandise, but excluding any
operation for hire or reward, or for instruction.
(C) ‘‘LIMITED COMMERCIAL’’ shall mean all the uses stated in (A) and (B) also the
carriage of passengers and freight for hire or reward, but excluding any form of
instruction or rental to others.
(D) ‘‘COMMERCIAL’’ shall mean the uses stated in (A), (B) and (C) also use for any other
purpose as specifically declared above.

ITEM 5
The Aircraft will be operated in flight only by the following pilot(s):

Name Certificate and Number Pilot and Aircraft Ratings

ITEM 6
No Insurer has ever cancelled or declined to issue or renew any Aircraft insurance to the
Insured, except as follows:
...................................................................................................................................................................
...................................................................................................................................................................