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E. WARRANTY AND GUARANTEE EXCLUSION<br />
The policy applies to Loss as a result of a Claim based on a negligent act or omission. Consistent with that scope<br />
of coverage, the policy excludes coverage for Loss resulting from the breach of an express warranty or guarantee.<br />
Claims for breach of warranty and guarantee typically do not fall within the insuring agreement because they<br />
are based on contractual obligations rather than on negligence, which is the basis for coverage under the MCPL<br />
policy. (Exclusion K).<br />
F. NON-MONETARY RELIEF EXCLUSION<br />
The policy covers the insured’s Loss, which is defined to include money damages. Consistent with that scope of<br />
coverage, the policy also excludes coverage for loss related to injunctive relief, or redress in any form other than<br />
money damages, including disciplinary proceedings. Under the MCPL policy, Claims may be brought against<br />
insureds, for example, by claimants seeking equitable remedies such as restitution or declaratory relief rather<br />
than damages. The exclusion bars coverage for such Claims. (Exclusion J).<br />
G. TERMINATION EXCLUSION<br />
Coverage under the policy applies only to Claims first made against the insured during the policy period. The<br />
policy therefore expressly excludes coverage for facts, circumstances, situations, events and transactions that<br />
were the subject of a Claim or notice on a prior policy, or that would cause a reasonable person to believe that a<br />
Claim for a Wrongful Act might have been made during a previous period. (Exclusion O).<br />
H. CIVIL RIGHTS EXCLUSION<br />
The policy excludes coverage for loss “directly or indirectly arising out of or resulting from any violation of any<br />
civil rights laws, including but not limited to discrimination by the Insured on the basis of age, color, race, creed,<br />
sex, size, national origin or marital status.” (Exclusion P).<br />
This exclusion is implicated under the MCPL policy, for example, by Claims by minority borrowers who allege<br />
that mortgage lenders engage in discriminatory practices or by elderly claimants who claim that lenders have<br />
exploited them based on age.<br />
I. CONTRACTUAL INDEMNITY EXCLUSION<br />
The policy excludes coverage for loss “directly or indirectly arising out of or resulting from any actual or alleged<br />
assumption by the Insured under any contract or agreement of the liability of others, unless such liability would<br />
have attached to the Insured in the absence of such a contract or agreement.” Coverage under the policy does<br />
not apply when the insured’s alleged liability arises from its contractual agreement to assume the liability of a<br />
subsidiary company or other entity. (Exclusion Q).<br />
J. ADVERTISING EXCLUSION<br />
The policy excludes coverage for loss “directly or indirectly arising out of or resulting from any actual or alleged<br />
advertising or solicitation activities of an Insured.” This exclusion commonly applies to Claims by borrowers<br />
alleging misrepresentations by the insured in advertising for or soliciting business, Claims between mortgage<br />
brokers alleging unfair competition or Claims alleging violations of the Telephone Consumer Solicitation Act. The<br />
exclusion bars coverage for any such advertising or solicitation Claims. (Exclusion T).<br />
15 · PROFESSIONAL LIABILITY COVERAGE