Saturday, March 14, 2009

EDRC Y2K

ELECTRONIC DATE RECOGNITION EXCLUSION CLAUSE (Y2K)
Words that appear in quotation marks in this endorsement have special meaning. Refer to Section B - Definitions.

A. Exclusion
Notwithstanding any other terms and conditions this Policy, including any other endorsements which may be attached to it, does not insure against any loss, damage, cost, claim or expense directly or indirectly arising out of or relating to:
1. The failure of any “system”, whether the property of the Insured or others, to “recognize” any “data” involving any “date change”, or
2. Any “modification” of any “system” whether the property of the Insured or others, to permit such “system” to “recognize” any “data” involving any “date change”

This exclusion shall apply regardless of any other cause or event that contributes concurrently or in any sequence to the loss, damage, cost, claim or expense.

However, if physical loss or damage not otherwise excluded by this Policy results, then subject to all its terms and conditions, this Policy shall be liable only for such resulting loss or damage. Each occurrence of resulting physical loss or damage shall be adjusted separately, and each occurrence shall be subject to the provisions regarding sublimits and deductibles specified elsewhere in this Policy.

In the event physical loss or damage not otherwise excluded by this Policy results to any “system”, this Policy including any other endorsement which may be attached to it, does not insure against any loss, damage, cost or claim or expense, whether preventative, remedial or otherwise, arising out of or relating to any “modification” of any “system”, whether the property of the Insured or others, to permit such “system” to “recognize” any “data” involving any “date change”.

B. Definitions
1. “System” means any computer system, hardware, firmware, program, or software or any microchip, integrated circuit, or similar device in computer equipment or non-computer equipment.
2. “Recognize” means to recognize, interpret, calculate, compare, differentiate, distinguish, accept, sequence or process.
3. “Data” means any data, instruction or information
4. “Date Change” means the date change to year 2000, the date change in any leap year or any other date change.
5. “Modification” means any modification, change, addition, alteration or correction.

Nothing herein contained shall be held to vary, alter, waive, or extend any of the terms, condition, or limitations of the policy to which this endorsement is attached other than as above stated.

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