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way be construed to limit or eliminate the liability of the Contractor, which arises from
<br />performance of Work under the Agreement. The Contractor is strictly responsible for any
<br />losses, claims, and costs of any kind which exceed the Contractor's limits of liability, or
<br />which may be outside the coverage scope of the policies.
<br />The insurance specified shall be provided by an insurer approved by the CMAR, authorized
<br />to do such business in the State of North Carolina, and on terms approved by the CMAR.
<br />Insurance companies utilized shall have a minimum rating of A- and Class VII as evaluated
<br />by the most current A.M. Best Rating Guide. If the insurer has a Best Rating less than A-
<br />and Class VII, the Contractor must receive specific written approval from the CMAR prior to
<br />proceeding with any Work under the Agreement. All agents and brokers shall hold valid
<br />licenses from the State of North Carolina. The Contractor shall furnish to the CMAR a
<br />certificate or certificates of insurance in a form satisfactory to the CMAR
<br />contemporaneously with the executed Construction Agreement. Upon request of the
<br />CMAR, the Contractor shall provide the CMAR with certified copies of the insurance
<br />policies required by this Article, including without limitation declaration pages, conditions,
<br />exclusions and endorsements, and confirmation that each policy premium has been paid
<br />for the required term of this Agreement. Certificates of insurance shall be signed by a
<br />person authorized by that insurer to bind coverage on its behalf. All insurance policies
<br />shall provide, as evidenced by Certificates of Insurance, that the insurance shall not be
<br />canceled, reduced, restricted, or changed in any way without at least thirty (30) days prior
<br />written notice to the CMAR and the Owner. With regard to expiration, cancellation,
<br />reduction, restriction, or any other change, certificates shall state: "Should any of the
<br />following described policies be canceled before expiration date or be due to expire within
<br />thirty (30) days, the insurer shall mail thirty (30) days prior written notice to named
<br />certificate holder." In the event of any such cancellation, non-renewal, reduction,
<br />restriction, or change in any insurance, the Contractor is obligated to replace such
<br />insurance within seven (7) days without a gap in coverage and file accordingly such notice
<br />with the CMAR and the Owner, and other interested parties. Failing immediate receipt of
<br />evidence of such replacement of insurance, the CMAR reserves the right to procure such
<br />insurance as the CMAR considers desirable and the Contractor shall pay or reimburse the
<br />cost of the premium in respect thereof. It is expressly provided, however, that any action or
<br />inaction on the part of the CMAR in this respect shall in no way change or reduce the
<br />Contractor's responsibilities and liabilities under this Agreement. Self-funded, policy
<br />fronting, or other non-risk transfer insurance mechanisms are not acceptable without prior
<br />written approval of the CMAR. Full disclosure of such a program must be made prior to
<br />commencing mobilization to the Project site. Failure to make a full disclosure constitutes a
<br />material breach of the Agreement, justifying termination for default.
<br />The Contractor shall name the CMAR, the Owner, the Designer and their respective
<br />consultants as additional insureds under all its insurance contracts (except workers'
<br />compensation) with respect to and including without limitation liability arising out of
<br />activities performed by or on behalf of the Contractor, products and completed operations
<br />of the Contractor, and automobiles owned, hired, leased, or borrowed by the Contractor.
<br />The coverage shall contain no special limitations on the scope of protection afforded to
<br />additional insureds.
<br />For any claims related to this Project, the Contractor's insurance or self-insurance shall be
<br />primary and noncontributory with respect to the CMAR, Owner or Designer insurance. Any
<br />insurance or self-insurance maintained by the CMAR, the Owner or the Designer shall be
<br />excess and noncontributory with respect to the Contractor's insurance.
<br />All policies of insurance except as noted in paragraph 5.2 shall contain a clause waiving
<br />rights of subrogation against the CMAR, the Owner and the Designer, unless the CMAR
<br />approves otherwise in writing.
<br />GENERAL CONDITIONS FOR CM-AT RISK PROJECT 9 of 42 JUNE 2007 EDITION
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