ACE Seguros - ACE Mexican Insurance

ACE Seguros

TOURIST AUTO INSURANCE POLICY FOR MEXICO V.1.2 – 06/05 2

CLAUSE 8ª. OBLIGATIONS OF THE INSURED

In case of a loss, the insured is obligated to:

1. Precautions: Upon the occurrence of an accident or loss, the Insured shall take all precautions available under the circumstance to prevent further damages. If there is no danger of further loss, the insured must consult the insurance company and must follow such instructions given. All expense incurred by the insured that were prudent will be reimbursed by the company and if the company instructs the insured to act, the company will pay all costs in advance. Noncompliance with the foregoing shall result in the reduction of the amount payable under this policy to the amount which would have been payable had the Insured complied with such obligation.

2. Duties In Case Of An Accident: Upon the occurrence of an accident or loss covered hereunder, the Insured is obligated to notify the Company as soon as he is made aware of same, with a maximum of 5 days, except in the case when such notification is rendered impossible by reasons beyond the reasonable control of the Insured, in which case he still must notify the Company as soon as the circumstances allow and, prior to leaving the Mexican Republic. Noncompliance with the foregoing shall result in the reduction of the amount payable under this policy to the amount which would have been payable had the Company been promptly advised of the occurrence.

3. Notification to Authorities - In the event of theft or any other criminal act which may give rise to coverage under the provision of this policy, the Insured shall immediately advise the proper authorities and shall cooperate with the Company in order to recover the vehicle or the amount of damages suffered

4. Concurrence of Coverages: In case of concurrence of coverages, the insured has the obligation to present the claim to their insurer in their country of origin. In addition, when the insured drives on toll roads in Mexico, the insured must aid the insurer in making a claim against the operator of the toll roads, to the Secretary of Public Transportation (SCT) or any other party that has an obligation/ interest in the loss.

5. Claim Notification: The insured is obligated to communicate to the company as soon as he or she has knowledge of, a loss or suits against the insured by the insured or his representatives, and in such case, would remit all documents or copies of said documents Failure to comply with this obligation by the insured will free the insurance company from indemnification which corresponds to the coverages affected by the loss. The company will not be obligated to recognize or accept debts, transactions, or any other judicial act of such kind, carried out without the consent of the insurance company A confession of a material fact will not be construed as the acceptance of liability by the insurance company.

6. Insured’s Cooperation With Insurance Company – The insured is obligated at the cost of the company, to take part in all civil proceedings against the insured or company with respect to the liability covered by the insurance. The insured must: ? Provide dates and the necessary proof which are required by the company for its defense at the cost of the insurer, in case it is deemed necessary or if it is not necessary for the insured to appear in court. ? Exercise or assert his rights and actions that which correspond to the insured. ? Take part in all civil proceedings ? Provide a power of attorney to the counsel that the insurer designates to defend this case in all proceedings, in case the insurer cannot intervene directly in all transactions of said proceedings.

CLAUSE 9ª. OTHER INSURANCE

The Insured has the obligation to immediately make known to the Company, in writing, the existence of other insurance contracted with any other company for the insured vehicle, covering the same risks and interests, indicating the name of the insurer, the policy number and the amount of such insurance, pursuant to section 100 of the General Law of Insurance Institutions. In conformance to Article 102 of the Insurance Statues, in the event of the existence of other insurance covering the same insurable interests, contracted in good faith, with the same or different policy dates, and for a total sum insured higher than the insurable interest, will be deemed valid and each insurance company will pay a proportionate share of a claim, based on the corresponding limits of coverage provided by each insurance companies´ policy. If the insured intentionally omits notice of other insurance as stated above or commence a process to collect from other insurers for undue gain, the company shall be free of obligation to pay said claim.

CLAUSE 10ª. VALUATION & INDEMNIFICATION OF LOSSES

If the insured has complied with the obligation that was imposed on Clause 8a, Obligations of the insured

b) Duties in Case of Accident and the vehicle is not detained, seized, confiscated or other similar situation by order of the appropriate authorities legally qualified and acknowledged in its function to intervene in such acts, the company is obligated to begin without haste the adjudication process. In the event the Company does not commence adjustment of damages within 72 hours as provided above, the Insured shall have the right to proceed with reasonable repair to the vehicle and shall have the right to demand payment for said repairs from the Company pursuant to the terms of the policy except if the delay is attributable to the insured or his actions. Upon finishing the valuation, making the adjustment and acceptance of its liability, the Company shall pay the Insured the amount of the damages that occurred on the date of loss in accordance with Article 71 of the Insurance Statues.

A) PARTIAL LOSSES

Payment of partial losses will be based on the invoice price of parts and the labor charge plus the taxes that are appropriate. In any case, valuation of losses will take into account the market price of parts and accessories at the date of the loss. If the insured opts to repair the car in the United States or Canada, the labor cost per hour will not exceed the appropriate rate shown on the Specification of Risks page of the policy. In the event the vehicle suffers damage, the repair of which requires replacement of parts not readily available in the market, the obligation of the Company shall be to pay the Insured the reasonable current list price of such parts as published by automobile dealerships, plus reasonable labor costs for the installation of such parts, as mutually agreed upon by the Company and the Insured, or lacking such an agreement, to be determined by a recognized specialist. From the amounts determined, the appropriate deductible will be subtracted for each and every coverage affected.

B) TOTAL LOSSES

If the amount of loss exceeds 60% of the value of the vehicle, the claim will be considered a total loss by the company. In the event of total loss that affect Section 1.1 Collision or 1.2 Total Theft of the insured vehicle, the Company will indemnify for the actual cash value on the vehicle, on the date of the loss, not exceeding the insured amount in force. To determine the market value of the insured vehicle at the moment of loss, value will be determined by taking an average of the following two sources: “Kelley Blue Book Auto Market Report” published by Kelly Blue Book Co. of California, United States of America and the NADA Guide from the National Automobile Dealers Association. ALL ACCIDENTS/LOSSES MUST BE REPORTED TO AN ADJUSTER OR REPRESENTATIVE OF THE INSURER IN MEXICO BY CALLING: 01-800-ACE-TOUR (01-800-223-8687) SECTION TWO GENERAL

PROVISIONS CLAUSE 1ª. PREMIUMS

The Policy Premium is based on the sum of the premium of the various coverages listed in this policy and premium is due at the purchase of the policy. The premium will be paid by the insured directly to the agent or via a charge to the insured’s credit card or a direct debit from the insured’s bank account if the policy is purchased on the web. The Premium must be paid in full when the policy is purchased.

CLAUSE 2ª. LATE PAYMENT INTEREST

In case that the insurer did not receive the documents and/or information that would prohibit the knowledge of said claim, the insured is not obligated to pay indemnification, any capital or rents according to Article 71 of the Insurance Statues. Insurer will be obligated to pay the insured, beneficiary o 3rd party, according to Article 135 of the “Ley General de Instituciones y Sociedades Mutualistas de Seguros” reformed by published decree in “Diario Oficial de Federación” on December 31, 1999 and January 16, 2002, an indemnification for contract delays established in this article. The corresponding interests will be computed from the following day of the expiration of the period which is referred to by Article 71 of the Insurance Statues.

CLAUSE 3ª. SALVAGE

It is expressly agreed that in the event the Company pays the total loss of the vehicle any salvage or recovery of the vehicle shall be the property of the Company except the special equipment that was not insured. The insured must cover the deductible in principal for any loss. The amount of salvage obtained by the company will used by the company to pay for adjudication expenses and any amount in excess will be returned to the insured. The company is required to notify by writing to the insured, any recovery, in which the insured is eligible for a portion of that recovery.

CLAUSE 4ª. LOSS OF RIGHTS TO RECOVERY

The obligations of the company are null and void: • If it is shown that the insured, the beneficiary or its representatives with the motive to be erroneous, fraudulent, or state inaccurate facts that would exclude or can restrict the payment of obligations by the insurer. • If there were deception or bad faith by the Insured, a beneficiary or the respective assignees or trustees • If it is shown that the insured, the beneficiary or its representatives with the motive to be erroneous, conceals material facts solicited by the Insurer relating to the loss that will help determine the circumstances and the consequences of the loss.

CLAUSE 5ª. PRIOR TERMINATION OF THE CONTRACT

Notwithstanding the term of this policy, the parties agree that either party may terminate the contract. When the insured cancels the contract, the insured must send such request in writing to the company or one of its agents. The premium that will be earned by the company will be calculated by the number of days the policy was in effect multiplied by the one day tariff applicable to the vehicle registered with the National Insurance Commission. Any remaining amount will be returned to the insured. If the policy is cancelled twenty (20) days or more after the effective date, the policy is considered fully earned and premium will not be returned. Cancellation of the policy by the Company is will be done by written notification, and such cancellation will take effect 15 days after such notification is given. The Company will return the premium not earned proportional to the time remaining on the policy and if such premium is not returned, the policy will not be considered as cancelled.

CLAUSE 6ª. ARBITRATION

In case of disagreement between the Insured and the Company as to the amount of any loss or damage, the case shall be submitted to the judgment of an arbitrator appointed in writing by both parties. If no agreement is reached as to the appointment of a single arbitrator, the case shall be submitted to the judgment of two; one appointment by each party, within 10 days from the time of written request from the other to do so. The arbitrators shall appoint an umpire to act in case of disagreement, prior to taking up their duties. If one of the parties should refuse or fail to appoint its arbitrator when requested by the Death or dissolution of the parties during the arbitration shall not annul or affect the powers or arbitrations of the arbitrator, or as the case may be, of both arbitrators or the umpire, respectively, or if either of the arbitrators or the umpire shall die before judgment is rendered, a new arbitrator or umpire shall be appointed (by parties, arbitrators or by the Mexican Judicial Authority, or, as the case may be) in substitution. The expense and costs of the arbitration shall be borne in equal parts by the Company and the Insured. However, each party shall pay the fees of its arbitrator. The arbitration mentioned in this Clause does not imply acceptance of the claim by the Company. It merely determines the amount of the indemnity, which the Company may eventually be obligated to pay, and the parties remain free to execute any actions and oppose the corresponding exceptions.

CLAUSE 7ª. STATUTE OF LIMITATIONS

All claims under this policy must be submitted within two years from the date of the occurrence giving rise thereto and pursuant to the terms of article 81 of the Law for Insurance Contracts with the exception of cases stipulated in article 82 of the same law. The statute of limitations shall be interrupted not only by ordinary cause, but also by the factors referred by the “Ley de Protección y Defensa al Usuario de Servicios Financieros” (Financial Consumer Protection Laws).

CLAUSE 8ª. JURISDICTION

In the event of a dispute between the Company and the Insured, the insured can assert his rights with the “Special Unit for Consultation and Complaints” of the Company, as well as the CONDUSEF (Financial Services Consumer Protection Association) at the headquarters or at the nearest branch office of the aforementioned Association in accordance with article 50 and 68 of the “Financial Services Consumer Protection Laws” and article 136 of the General Law of Insurance Institutions and Mutual Societies. The aforementioned rights must be asserted within two years from loss that originated the dispute. If both parties do not arbitrate CONDUSEF, or the party CONDUSEF recommends, the insured is free to assert his rights with a judge of a competent tribunal near the place where the branch office of the Association mentioned above is located. In all cases, the insured is free to choose to direct the complaint either with the Special Unit of the Company, CONDUSEF or with a judge in a competent tribunal.

CLAUSE 9ª. COMMUNICATIONS

Any declaration or communication in relation to the present contract, must be communicated to the insurer in writing, precisely to its headquarters. In such case where the address of the headquarters changes, the new address within the Republic of Mexico will be communicated to the insureds to send any and all correspondence and for any other legal matter. The requirements and communications that the company must make to the insureds or its trustees, will be made by using the last known address by the company and such notification will be deemed valid.

CLAUSE 10ª. SUBROGATION

In the event of any payment under this policy, the Company will subrogate the Insured's rights of recovery against any parties responsible for the loss. If the Company so requires, at its cost, the Insured shall confirm such subrogation rights in writing. The company will be released in whole or in part from its obligations if the subrogation is impeded by acts or omissions that were promulgated by the insured. If damage suffered by the Insured was only partially indemnified by the Company, the Insured and the Company agree to exercise their rights against any parties responsible for such damage in the corresponding proportions. The right to subrogation will not proceed in the case that the insured is the spouse or is related by blood to the second degree to the insured or the spouse, with the person responsible for the loss or if the insured himself is held legally responsible for the loss.

CLAUSE 11ª. LANGUAGE

The English text of this policy is a courtesy translation. The Spanish text contains the official conditions of this contract, and in the event of any conflict, the Spanish text shall prevail.

CLAUSE 12ª. ARTICLE 25 OF THE MEXICAN INSURANCE STATUTE

If the contents of this policy or its modifications does not agree with the offer, the insured can request a redress within 30 days of the receipt of this policy. After such time, the conditions and the modifications of this policy are deemed to be accepted ACE SEGUROS, S.A. Edificio Arcos Oriente Bosques de Alisos No. 47ª 1er Piso Bosques de las Lomas 05120, México, D.F. This document and the filing that support this policy is filed with the National Commission of Insurance & Bonding, in conformity with the following articles36, 36A, 36B, and 36D of the "Ley General de Instituciones y Sociedades Mutualistas de Seguros", with registration number CNSF-S0039-0169-2005 of March 16th, 2005

COMMISSIONS AND COMPENSATIONS TO INTERMEDIARIES OR MORAL PERSONS While the insurance policy is in force, the insured could request in writing to the insurance company the percentage of the premium that correspond to commissions or compensations paid direct to the intermediaries or moral person due to the intervention to celebrate this contract. The insurance company will provide such information in writing or email in a period not greater than 10 working days after the date of the reception of the request. The document and the filling that support this policy is filed with the National Commission of Insurance & Bonding, In conformity with the following articles 36, 36-A, 36- B and 36-D of the “Ley General de Instituciones y Sociedades Mutualistas de Seguros” with registration number CGEN-S0039-0237-2005 of December 13th, 2005.