Reference No.
PROPERTY FIRST CATASTROPHE EXCESS OF LOSS CONTACT
EFFECTIVE JANUARY 1, 1997, 12:01 A.M., LOCAL STANDARD TIME
for the
GUARANTY NATIONAL INSURANCE COMPANY
COLORADO CASUALTY INSURANCE COMPANY
PEAK PROPERTY AND CASUALTY INSURANCE CORPORATION
GUARANTY NATIONAL INSURANCE COMPANY OF CALIFORNIA
ENGLEWOOD, COLORADO
LANDMARK AMERICAN INSURANCE COMPANY
OKLAHOMA CITY, OKLAHOMA
VIKING INSURANCE COMPANY OF WISCONSIN
MADISON, WISCONSIN
VIKING COUNTY MUTUAL INSURANCE COMPANY
AUSTIN, TEXAS
(hereinafter called the "Reassured")
by
THE HANOVER INSURANCE COMPANY
NEW HAMPSHIRE
(hereinafter called, with other participants, the
"Reinsurers")
Under the terms of this Contract the above Reinsurer
agrees to assume severally and not jointly with other
participants
a 4.00% share
of the liability described in the attached Contract
and, as
consideration, the Reinsurer shall receive a 4.00%
share
of the premium named therein.
Signed in Florham Park, New Jersey, this 14th day of April, 1997,
ALLMERICA RE for and on behalf of
THE HANOVER INSURANCE COMPANY
BY s/Phillip A. Ward
TITLE Vice President
Towers Perrin
Reinsurance
Reference No. 9612/166324
PROPERTY FIRST CATASTROPHE EXCESS OF LOSS CONTACT
EFFECTIVE JANUARY 1, 1997, 12:01 A.M., LOCAL STANDARD TIME
for the
GUARANTY NATIONAL INSURANCE COMPANY
COLORADO CASUALTY INSURANCE COMPANY
PEAK PROPERTY AND CASUALTY INSURANCE CORPORATION
GUARANTY NATIONAL INSURANCE COMPANY OF CALIFORNIA
ENGLEWOOD, COLORADO
LANDMARK AMERICAN INSURANCE COMPANY
OKLAHOMA CITY, OKLAHOMA
VIKING INSURANCE COMPANY OF WISCONSIN
MADISON, WISCONSIN
VIKING COUNTY MUTUAL INSURANCE COMPANY
AUSTIN, TEXAS
(herinafter called the "Reassured")
by
EVEREST REINSURANCE COMPANY
DELAWARE
(hereinafter called, with other participants, the
"Reinsurers")
Under the terms of this Contract the above Reinsurer
agrees to assume severally and not jointly with other
participants
a 17.25% share
of the liability described in the attached Contract
and, as
consideration, the Reinsurer shall receive a 17.25%
share
of the premium named therein.
Signed in Newark, New Jersey, this 28 day of March, 1997,
EVEREST REINSURANCE COMPANY
BY s/Halina Herc
TITLE Vice President
Towers Perrin
Reinsurance
Reference No.
PROPERTY FIRST CATASTROPHE EXCESS OF LOSS CONTACT
EFFECTIVE JANUARY 1, 1997, 12:01 A.M., LOCAL STANDARD TIME
for the
GUARANTY NATIONAL INSURANCE COMPANY
COLORADO CASUALTY INSURANCE COMPANY
PEAK PROPERTY AND CASUALTY INSURANCE CORPORATION
GUARANTY NATIONAL INSURANCE COMPANY OF CALIFORNIA
ENGLEWOOD, COLORADO
LANDMARK AMERICAN INSURANCE COMPANY
OKLAHOMA CITY, OKLAHOMA
VIKING INSURANCE COMPANY OF WISCONSIN
MADISON, WISCONSIN
VIKING COUNTY MUTUAL INSURANCE COMPANY
AUSTIN, TEXAS
(herinafter called the "Reassured")
by
FIRST EXCESS & REINSURANCE CORPORATION
MISSOURI
(hereinafter called, with other participants, the
"Reinsurers")
Under the terms of this Contract the above Reinsurer
agrees to assume severally and not jointly with other
participants
a 5.75% share
of the liability described in the attached Contract
and, as
consideration, the Reinsurer shall receive a 5.75%
share
of the premium named therein.
Signed in Overland Park, Kansas this 3 day of April, 1997,
FIRST EXCESS & REINSURANCE
CORPORATION
BY s/Michael C. S. Burn
TITLE Vice President
Towers Perrin
Reinsurance
Reference No.
PROPERTY FIRST CATASTROPHE EXCESS OF LOSS CONTACT
EFFECTIVE JANUARY 1, 1997, 12:01 A.M., LOCAL STANDARD TIME
for the
GUARANTY NATIONAL INSURANCE COMPANY
COLORADO CASUALTY INSURANCE COMPANY
PEAK PROPERTY AND CASUALTY INSURANCE CORPORATION
GUARANTY NATIONAL INSURANCE COMPANY OF CALIFORNIA
ENGLEWOOD, COLORADO
LANDMARK AMERICAN INSURANCE COMPANY
OKLAHOMA CITY, OKLAHOMA
VIKING INSURANCE COMPANY OF WISCONSIN
MADISON, WISCONSIN
VIKING COUNTY MUTUAL INSURANCE COMPANY
AUSTIN, TEXAS
(herinafter called the "Reassured")
by
HANNOVER RUCKVERSICHERUNG AG
HANNOVER, GERMANY
(hereinafter called, with other participants, the
"Reinsurers")
Under the terms of this Contract the above Reinsurer
agrees to assume severally and not jointly with other
participants
a 5.00% share
of the liability described in the attached Contract
and, as
consideration, the Reinsurer shall receive a 5.00%
share
of the premium named therein.
Signed in Hannover, Germany, this 3rd day of April, 1997,
HANNOVER RUCKVERSICHERUNG AG
hannover re
Hannover
BY Ruckversicherungs-Aktiengesellschaft
s/Konrad Rentrup
TITLE North American Treaty
Dpt.-VR 10 Ref.-No. MO 2648
Towers Perrin
Reinsurance
Reference No.
PROPERTY FIRST CATASTROPHE EXCESS OF LOSS CONTACT
EFFECTIVE JANUARY 1, 1997, 12:01 A.M., LOCAL STANDARD TIME
for the
GUARANTY NATIONAL INSURANCE COMPANY
COLORADO CASUALTY INSURANCE COMPANY
PEAK PROPERTY AND CASUALTY INSURANCE CORPORATION
GUARANTY NATIONAL INSURANCE COMPANY OF CALIFORNIA
ENGLEWOOD, COLORADO
LANDMARK AMERICAN INSURANCE COMPANY
OKLAHOMA CITY, OKLAHOMA
VIKING INSURANCE COMPANY OF WISCONSIN
MADISON, WISCONSIN
VIKING COUNTY MUTUAL INSURANCE COMPANY
AUSTIN, TEXAS
(herinafter called the "Reassured")
by
INSURANCE COMPANY OF THE WEST
CALIFORNIA
(hereinafter called, with other participants, the
"Reinsurers")
Under the terms of this Contract the above Reinsurer
agrees to assume severally and not jointly with other
participants
a 19.50% share
of the liability described in the attached Contract
and, as
consideration, the Reinsurer shall receive a 19.50%
share
of the premium named therein.
Signed in San Diego, California this 17th day of March, 1997,
INSURANCE COMPANY OF THE WEST
BY s/Elaine Lamb
TITLE Product Management Specialist
Towers Perrin
Reinsurance
Reference No.
PROPERTY FIRST CATASTROPHE EXCESS OF LOSS CONTACT
EFFECTIVE JANUARY 1, 1997, 12:01 A.M., LOCAL STANDARD TIME
for the
GUARANTY NATIONAL INSURANCE COMPANY
COLORADO CASUALTY INSURANCE COMPANY
PEAK PROPERTY AND CASUALTY INSURANCE CORPORATION
GUARANTY NATIONAL INSURANCE COMPANY OF CALIFORNIA
ENGLEWOOD, COLORADO
LANDMARK AMERICAN INSURANCE COMPANY
OKLAHOMA CITY, OKLAHOMA
VIKING INSURANCE COMPANY OF WISCONSIN
MADISON, WISCONSIN
VIKING COUNTY MUTUAL INSURANCE COMPANY
AUSTIN, TEXAS
(herinafter called the "Reassured")
by
NATIONWIDE MUTUAL INSURANCE COMPANY
OHIO
(hereinafter called, with other participants, the
"Reinsurers")
Under the terms of this Contract the above Reinsurer
agrees to assume severally and not jointly with other
participants
a 20.00% share
of the liability described in the attached Contract
and, as
consideration, the Reinsurer shall receive a 20.00%
share
of the premium named therein.
Signed in Columbus, Ohio, this 21st day of March, 1997,
NATIONWIDE MUTUAL INSURANCE
COMPANY
BY s/Robert J. Wilson
TITLE Reinsurance Manager
Towers Perrin
Reinsurance
Reference No.
PROPERTY FIRST CATASTROPHE EXCESS OF LOSS CONTACT
EFFECTIVE JANUARY 1, 1997, 12:01 A.M., LOCAL STANDARD TIME
for the
GUARANTY NATIONAL INSURANCE COMPANY
COLORADO CASUALTY INSURANCE COMPANY
PEAK PROPERTY AND CASUALTY INSURANCE CORPORATION
GUARANTY NATIONAL INSURANCE COMPANY OF CALIFORNIA
ENGLEWOOD, COLORADO
LANDMARK AMERICAN INSURANCE COMPANY
OKLAHOMA CITY, OKLAHOMA
VIKING INSURANCE COMPANY OF WISCONSIN
MADISON, WISCONSIN
VIKING COUNTY MUTUAL INSURANCE COMPANY
AUSTIN, TEXAS
(herinafter called the "Reassured")
by
NEW JERSEY RE-INSURANCE COMPANY
NEW JERSEY
(hereinafter called, with other participants, the
"Reinsurers")
Under the terms of this Contract the above Reinsurer
agrees to assume severally and not jointly with other
participants
a 2.00% share
of the liability described in the attached Contract
and, as
consideration, the Reinsurer shall receive a 5.75%
share
of the premium named therein.
Signed in West Trenton, New Jersey, this 29th day of April,
1997,
NEW JERSEY RE-INSURANCE COMPANY
BY s/Thomas A Lynch
TITLE Vice President
Towers Perrin
Reinsurance
Reference No.
PROPERTY FIRST CATASTROPHE EXCESS OF LOSS CONTACT
EFFECTIVE JANUARY 1, 1997, 12:01 A.M., LOCAL STANDARD TIME
for the
GUARANTY NATIONAL INSURANCE COMPANY
COLORADO CASUALTY INSURANCE COMPANY
PEAK PROPERTY AND CASUALTY INSURANCE CORPORATION
GUARANTY NATIONAL INSURANCE COMPANY OF CALIFORNIA
ENGLEWOOD, COLORADO
LANDMARK AMERICAN INSURANCE COMPANY
OKLAHOMA CITY, OKLAHOMA
VIKING INSURANCE COMPANY OF WISCONSIN
MADISON, WISCONSIN
VIKING COUNTY MUTUAL INSURANCE COMPANY
AUSTIN, TEXAS
(herinafter called the "Reassured")
by
ST. PAUL FIRE AND MARINE INSURANCE COMPANY
MINNESOTA
(hereinafter called, with other participants, the
"Reinsurers")
Under the terms of this Contract the above Reinsurer
agrees to assume severally and not jointly with other
participants
a 12.00% share
of the liability described in the attached Contract
and, as
consideration, the Reinsurer shall receive a 12.00%
share
of the premium named therein.
Signed in New York, New York, this 4th day of April, 1997,
ST PAUL FIRE AND MARINE INSURANCE
through ST. PAUL REINSURANCE
MANAGEMENT CORPORATION
BY s/Cathryn Carea
TITLE Vice President
Towers Perrin
Reinsurance
Reference No.
PROPERTY FIRST CATASTROPHE EXCESS OF LOSS CONTACT
EFFECTIVE JANUARY 1, 1997, 12:01 A.M., LOCAL STANDARD TIME
for the
GUARANTY NATIONAL INSURANCE COMPANY
COLORADO CASUALTY INSURANCE COMPANY
PEAK PROPERTY AND CASUALTY INSURANCE CORPORATION
GUARANTY NATIONAL INSURANCE COMPANY OF CALIFORNIA
ENGLEWOOD, COLORADO
LANDMARK AMERICAN INSURANCE COMPANY
OKLAHOMA CITY, OKLAHOMA
VIKING INSURANCE COMPANY OF WISCONSIN
MADISON, WISCONSIN
VIKING COUNTY MUTUAL INSURANCE COMPANY
AUSTIN, TEXAS
(herinafter called the "Reassured")
by
UNITED FIRE & CASUALTY COMPANY
IOWA
(hereinafter called, with other participants, the
"Reinsurers")
Under the terms of this Contract the above Reinsurer
agrees to assume severally and not jointly with other
participants
a 2.00% share
of the liability described in the attached Contract
and, as
consideration, the Reinsurer shall receive a 2.00%
share
of the premium named therein.
Signed in Cedar Rapids, Iowa, this 27th day of March, 1997,
UNITED FIRE & CASUALTY COMPANY
BY s/John A. Cruice
TITLE Vice President
Towers Perrin
Reinsurance
Reference No.
PROPERTY FIRST CATASTROPHE EXCESS OF LOSS CONTACT
EFFECTIVE JANUARY 1, 1997, 12:01 A.M., LOCAL STANDARD TIME
for the
GUARANTY NATIONAL INSURANCE COMPANY
COLORADO CASUALTY INSURANCE COMPANY
PEAK PROPERTY AND CASUALTY INSURANCE CORPORATION
GUARANTY NATIONAL INSURANCE COMPANY OF CALIFORNIA
ENGLEWOOD, COLORADO
LANDMARK AMERICAN INSURANCE COMPANY
OKLAHOMA CITY, OKLAHOMA
VIKING INSURANCE COMPANY OF WISCONSIN
MADISON, WISCONSIN
VIKING COUNTY MUTUAL INSURANCE COMPANY
AUSTIN, TEXAS
(herinafter called the "Reassured")
by
WINTERTHUR REINSURANCE CORPORATION OF AMERICA
NEW YORK
(hereinafter called, with other participants, the
"Reinsurers")
Under the terms of this Contract the above Reinsurer
agrees to assume severally and not jointly with other
participants
a 12.50% share
of the liability described in the attached Contract
and, as
consideration, the Reinsurer shall receive a 12.50%
share
of the premium named therein.
Signed in New York, New York, this 14th day of April, 1997,
WINTERTHUR REINSURANCE
CORPORATION OF AMERICA
BY s/Scott M. Emanuele
TITLE Vice President
Towers Perrin
Reinsurance
and signed in Englewood, Colorado, this 18th day of June, 1997.
BY s/Fred T. Roberts
TITLE President, Commercial Division
PART OF THE
PROPERTY FIRST CATASTROPHE EXCESS OF LOSS CONTRACT
EFFECTIVE JANUARY 1, 1997, 12:01 A.M., LOCAL STANDARD TIME
for the
GUARANTY NATIONAL INSURANCE COMPANY
COLORADO CASUALTY INSURANCE COMPANY
PEAK PROPERTY AND CASUALTY INSURANCE CORPORATION
GUARANTY NATIONAL INSURANCE OF CALIFORNIA
ENGLEWOOD, COLORADO
LANDMARK AMERICAN INSURANCE COMPANY
OKLAHOMA CITY, OKLAHOMA
VIKING INSURANCE COMPANY OF WISCONSIN
MADISON, WISCONSIN
VIKING COUNTY MUTUAL INSURANCE COMPANY
AUSTIN, TEXAS
Towers Perrin
Reinsurance
GUARANTY NATIONAL INSURANCE COMPANY
COLORADO CASUALTY INSURANCE COMPANY
PEAK PROPERTY AND CASUALTY INSURANCE CORPORATION
GUARANTY NATIONAL INSURANCE COMPANY OF CALIFORNIA
LANDMARK ARMERICAN INSURANCE COMPANY
VIKING INSURANCE COMPANY OF WISCONSIN
VIKING COUNTY MUTUAL INSURANCE COMPANY
PROPERTY FIRST CATASTROPHE EXCESS OF LOSS CONTRACT
EFFECTIVE JANUARY 1, 1997, 12:01 A.M., LOCAL STANDARD TIME
INDEX
ARTICLE SUBJECT PAGE
PREAMBLE ___________________.1.
1 BUSINESS COVERED _______________1.
2 TERM _____________________ . 1.
3 DEFINITION OF POLICIES _____________1.
4 TERRITORY ___________________.1.
5 EXCLUSIONS _.. _________________2.
6 RETENTION AND LIMIT ______________3.
7 REINSTATEMENT_________________3.
8 DEFINITION OF LOSS OCCURRENCE________..4.
9 NET LOSS____________________..5.
10 NET RETAINED LINES_______________6.
11 LIABILITY OF THE REINSURER___________6.
12 NOTICE OF LOSS AND LOSS SETTLEMENT_____..6.
13 SALVAGE AND SUBROGATION___________7.
14 PREMIUM ____________________..7.
15 CURRENCY____________________8.
16 ERRORS AND OMMISSIONS____________..8.
17 TAXES______________________.8.
18 ACCESS TO RECORDS _______________8
19 INTERMEDIARY__________________9
20 INSOLVENCY___________________.9
21 ARBITRATION___________________9
22 RESERVES____________________.10
23 SERVICE OF SUIT_________________12
24 OFFSET_____________________..12
25 ENTIRE AGREEMENT_______________.13
ATTACHMENTS
NUCLEAR INCIDENT EXCLUSION CLAUSE - PHYSICAL DAMAGE
- -
REINSURANCE
POOLS EXCLUSION CLAUSE
Towers Perrin
Reinsurance
GUARANTY NATIONAL INSURANCE COMPANY
COLORADO CASUALTY INSURANCE COMPANY
PEAK PROPERTY AND CASUALTY INSURANCE CORPORATION
GUARANTY NATIONAL INSURANCE COMPANY OF CALIFORNIA
LANDMARK AMERICAN INSURANCE COMPANY
VIKING INSURANCE COMPANY OF WISCONSIN
VIKING COUNTY MUTUAL INSURANCE COMPANY
PROPERTY SECOND CATASTROPHE EXCESS OF LOSS CONTRACT
PREAMBLE
The Reinsurers hereby reinsure the net excess liability
of the Reassured resulting from any loss occurrence or loss
occurrences which may take place during the term of this Contract
under the Reassured's policies subject to the following
conditions:
ARTICLE 1., BUSINESS COVERED
This Contract shall cover policies in force at the
inception of this Contract or written or renewed subsequent to
its inception, issued by or on behalf of the Reassured and
classified by the Reassured as property including Fire, Allied
Lines, Inland Marine, Section I of Farmers Multiple Peril,
Homeowners Multiple Peril and Commercial Multiple Peril and Auto
Physical Damage but excluding Collision.
ARTICLE 2., TERM
A. The term of this Contract shall be from 12:01 a.m.,
Local Standard
Time, January 1, 1997 through 12:01 a.m., Local Standard Time,
January 1, 1998.
B. If this Contract should terminate while a loss
occurrence covered hereunder is in progress, the Reinsurers shall
be liable subject to all other conditions of this Contract, for
their share of all individual losses resulting from such loss
occurrence whether any such individual losses take place before
or after such termination.
ARTICLE 3., DEFINITION OF POLICIES
The term "policies", whenever used herein, shall mean
all binders, policies, contracts, certificates and other
obligations, whether oral or written, of insurance.
ARTICLE 4., TERRITORY
Subject to all other terms and conditions of this
Contract, this Contract shall apply to losses occurring anywhere
within the territorial limits of the Reassured's policy by which
it was insured.
Towers Perrin
Reinsurance
ARTICLE 5., EXCLUSIONS
A. This Contract does not apply to and specifically excludes
the following:
1. Business classified by the Reassured as Accident and Health,
Workers' Compensation, Employers' Liability. all
forms of third
party Bodily Injury Liability, and Fidelity and
Surety;
2. Hail damage to growing or standing crops;
3 Nuclear incidents in accordance with the Nuclear
Incident
Exclusion Clause - Physical Damage - Reinsurance
attached
to and forming part of this Contract,
4. Reinsurance treaty business, including pro rata and excess
of
loss, assumed by the Reassured, but not to exclude
business
from State and County Mutual Fire, Security
Insurance of
Hartford and affiliated companies;
5. Pools, Associations and Syndicate business as
excluded by
the provisions of the "Pools Exclusions Clause"
attached to
and forming part of this Contract;
6 Loss or damage occasioned by war, invasion,
hostilities, acts
of foreign enemies, civil war, rebellion,
insurrection, military or
usurped power, or martial law or confiscation by
order of any
government or public authority but not excluding
loss or
damage which would be covered under a standard of
policy containing a standard War Exclusion Clause;
7. Financial Guaranty and Insolvency;
8. All liability of the Reassured arising by contract,
operation of law, or otherwise, from its participation or
membership, whether voluntary or involuntary, in any
insolvency fund shall be excluded hereunder. "Insolvency
Fund" includes any guaranty fund, insolvency fund, plan, pool,
association, fund or other arrangement, howsoever denominated,
established or governed; which provides for any assessment of
or payment or assumption by the Reassured of part or all of
any claim, debt, charge, fee, or other obligation of an insurer,
or its successors or assigns, which has been declared by any
competent authority to be
insolvent, or which is otherwise deemed unable to
meet any claim, debt,
charge, fee or other obligation in whole or in part;
9. Loss/or Damage/or Costs/or Expenses arising from
Seepage and/or Pollution and/or Contamination, other than
Contamination from Smoke Damage. Nevertheless, this
exclusion does not preclude any payment of the
cost of the removal of debris of property damaged
by a loss otherwise
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Reinsurance
covered hereunder, but subject always to a limit
of 25.0% of the
Reassured's Property loss under the original
policy. It is agreed
that all business the subject of the Contract
contains the full I.S.O.
Seepage and Pollution Exclusion Clause or so
deemed.
B. Policies or coverages excluded under the provisions of
this ARTICLE 5., EXCLUSIONS, (other than items (3), (6), (7) and
(9) which are inadvertently issued or issued in error or issued
without the Reassured's knowledge and consent shall be covered
hereunder provided such policies are canceled or reinsured
elsewhere as soon as possible upon the Reassured's Home Office
Underwriting Management becoming aware that they are excluded.
ARTICLE 6., RETENTION AND LIMIT
The Reinsurers shall be liable for each and every loss
occurrence, irrespective of the number and kinds of risks and
perils involved, for 95% of the net loss in excess of $10,000,000
each and every loss occurrence; but the Reinsurers' shall not be
liable for more than $9,500,000 (being 95% of $10,000,000) for
each and every loss occurrence. In the event the aggregate
losses recoverable under this Contract are expected to exceed
$18,000,000, the Reassured shall immediately notify the State of
Colorado Division of Insurance of the impending exhaustion of the
reinsurance coverage.
ARTICLE 7., REINSTATEMENT
A. Each claim hereunder shall reduce the amount of the
Reinsurers' liability from the time of the occurrence of the loss
by the sum paid, but the sum so exhausted immediately shall be
reinstated from the time of the occurrence of the loss.
B. For each amount so reinstated, the Reassured agrees to
pay an additional premium calculated by multiplying 100% of the
annual premium hereon by the product of the percentage that the
amount reinstated bears to the limit (i.e. $9,500,000) of this
Contract. Nevertheless, the liability of the Reinsurers shall
never be more than $9,500,000 in respect of any one loss
occurrence, nor more than $19,000,000 in all in respect of all
losses occurring during the term of this Contract.
C. A provisional reinstatement premium shall be. paid by
the Reassured at the time the Reinsurers pay the loss giving rise
to the reinstatement premium through an offset of the provisional
reinstatement premium due the Reinsurers against the loss payment
due the Reassured, with only the net amount due to be remitted by
the Reinsurers to the Reassured. The amount of this provisional
reinstatement premium shall be based on 100% of the estimated
annual reinsurance premium as calculated in Paragraph A. of
ARTICLE 14., PREMIUM (or the annual deposit premium as stated in
Paragraph C. of ARTICLE 14., PREMIUM, if prior to the conclusion
of a full calendar year).
Towers Perrin
Reinsurance
D. As promptly as possible after the loss has been paid by
the Reinsurers and the annual reinsurance premium hereunder has
been finally determined, the Reassured shall prepare and submit
to the Reinsurers a final statement of reinstatement premium
due. Any reinstatement premium shown to be due the Reinsurers
(less prior payments, if any) shall be remitted by the Reassured
with its statement. Any return reinstatement premium shown to be
due the Reassured shall be remitted by the Reinsurers as promptly
as possible after receipt of the Reassured's final statement.
ARTICLE 8., DEFINITION OF LOSS OCCURRENCE
A. The term "Loss Occurrence" shall mean the sum of all
individual losses directly occasioned by any one disaster,
accident or loss or series of disasters, accidents or losses
arising out of one event which occurs within the area of one
state of the United States or province of Canada and states or
provinces contiguous thereto and to one another. However, the
duration and extent of any one "Loss Occurrence" shall be limited
to all individual losses sustained by the Reassured occurring
during any period of 168 consecutive hours arising out of and
directly occasioned by the same event except that the term "Loss
Occurrence" shall be further defined as follows:
1. As regards windstorm, hail, tornado, hurricane,
cyclone, including ensuing
collapse and water damage, all individual losses
sustained by the
Reassured occurring during any period of 72
consecutive hours arising
out of and directly occasioned by the same event.
However, the event need
not be limited to one state or province or states
or provinces contiguous
thereto.
2. As regards riot, riot attending a strike, civil
commotion, vandalism and malicious mischief, all
individual losses sustained by the Reassured
occurring during any period of 72 consecutive
hours within the area of one
municipality or county and the municipalities or
counties contiguous
thereto arising out of and directly occasioned by
the same event. The
maximum duration of 72 consecutive hours may be
extended in respect of
individual losses which occur beyond such 72
consecutive hours during the continued occupation of
an assured's premises by strikers, provided such
occupation commenced during the aforesaid period.
3. As regards earthquake (the epicenter of which need
not necessarily be
within the territorial confines referred to in the
opening paragraph of this
ARTICLE 8., DEFINITION OF LOSS OCCURRENCE) and
fire
following directly occasioned by the earthquake,
only those individual fire
losses which commence during the period of 168
consecutive hours may be
included in the Reassured's "Loss Occurrence".
TowersPerrin
Reinsurance
4. As regards "Freeze", only individual losses directly
occasioned by
collapse, breakage of glass and water damage
(caused by bursting of
frozen pipes and tanks) may be included in the
Reassured's "Loss
Occurrence".
B. For all "Loss Occurrences", other than those referred
to in subparagraph A. 2. of this ARTICLE 8.. DEFINITION OF LOSS
OCCURRENCE, the Reassured may choose the date and time when any
such period of consecutive hours commences provided that it is
not earlier than the date and time of the occurrence of the first
recorded individual loss sustained by the Reassured arising out
of that disaster, accident or loss and provided that only one
such period of 168 consecutive hours shall apply with respect to
one event except for any "Loss Occurrences" referred to in sub-
paragraph A. 1. of this ARTICLE B., DEFINITION OF LOSS OCCURRENCE
where only one such period of 72 consecutive hours shall apply
with respect to one event.
C. As respects those "Loss Occurrences" referred to in sub-
paragraph A.
2. of this ARTICLE B., DEFINITION OF LOSS OCCURRENCE, if the
disaster, accident or loss occasioned by the event is of greater
duration than 72 consecutive hours, then the Reassured may divide
that disaster, accident or loss into two or more "Loss
Occurrences" provided no two periods overlap and no individual
loss is included in more than one such period and provided that
no period commences earlier than the date and time of the
occurrence of the first recorded individual loss sustained by the
Reassured arising out of that disaster, accident or loss.
D. No individual losses occasioned by an event that would
be covered by 72 hours clauses may be included in any "Loss
Occurrence" claimed under the 168 hours provision.
ARTICLE 9., NET LOSS
A. The term "net loss" shall mean the actual loss incurred
by the Reassured under policies covered hereunder. Such loss
shall include sums paid in settlement of claims and suits and in
satisfaction of judgments, including prejudgment interest when
added to a judgment. Such loss also shall include all allocated
loss adjustment expenses paid by the Reassured including but not
limited to expenses sustained in connection with settlement and
litigation of claims and suits, satisfaction of judgments,
resistance to or negotiations concerning a loss (which shall
include the pro rata share of the Reassured's outside employees
according to the time occupied in adjusting such loss and the
expenses of. the Reassured's employees while diverted from their
normal duties to the service of field adjustment but shall not
include any salaries of officers nor normal overhead expenses of
the Reassured) and any interest on judgments other than
prejudgment interest when added to a judgment.
B. All salvages, recoveries, payments and reversals or
reductions of verdicts or judgments (net of the cost of obtaining
such salvage, recovery, payment or reversal or reduction of a
verdict or judgment) whether recovered, received or obtained
prior or subsequent to loss settlement under this Contract,
including
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Reinsurance
amounts recoverable under other reinsurance whether collected or
not, shall be applied as if recovered, received or obtained prior
to the aforesaid settlement and shall be deducted from the actual
losses sustained to arrive at the amount of the net loss.
Nothing in this ARTICLE 9., NET LOSS, shall be construed to mean
losses are not recoverable until the net loss to the Reassured
finally has been ascertained.
ARTICLE 10., NET RETAINED LINES
A. This Contract applies only to that portion of any
insurance or reinsurance which the Reassured retains net for its
own account and in calculating the amount of any loss hereunder
and also in computing the amount or amounts in excess of which
this Contract attaches, only loss or losses in respect of that
portion of any insurance or reinsurance which the Reassured
retains net for its own account shall be included.
B. It is agreed, however, that the amount of the
Reinsurers' liability hereunder in respect of any loss or losses
shall not be increased by reason of the inability of the
Reassured to collect from any other Reinsurers, whether specific
or general, any amounts which may have become due from them,
whether such inability arises from the insolvency of such other
Reinsurers or otherwise.
C. It is understood that the Reassured carries
underlying per risk excess
reinsurance, recoveries under which shall inure to
the benefit of the Reinsurers
hereunder and shall be deducted in determining the
net loss subject to this Contract.
ARTICLE 1., LIABILITY OF THE REINSURER
A. The liability of the Reinsurers shall follow that of
the Reassured in every case, and be subject in all respects to
all the general and special stipulations, clauses, waivers and
modifications of the Reassured's policies and any endorsements
thereon.
B. All terms of this Contract shall be subject to the laws
of the state of Colorado.
C. Nothing herein shall in any manner create any
obligations or establish any rights against the Reinsurers in
favor of any third party or any persons not parties to this
Contract.
ARTICLE 12., NOTICE OF LOSS AND LOSS SETTLEMENT
A. The Reassured shall advise the Reinsurers promptly of
all loss occurrences which, in the opinion of the Reassured, may
result in a claim hereunder and of all subsequent developments
thereto which, in the opinion of the Reassured, may materially
affect the position of the Reinsurers. Inadvertent omission or
oversight in giving such notice shall in no way affect the
liability of the Reinsurers. However, the Reinsurers shall be
informed of such omission or oversight promptly upon its
discovery.
Towers Perrin
Reinsurance
B. All loss settlements made by the Reassured, provided
they are within the terms of this Contract, shall be
unconditionally binding upon the Reinsurers, who agree to pay all
amounts for which they may be liable immediately upon being
furnished by the Reassured with reasonable evidence of the amount
due.
ARTICLE 13., SALVAGE AND SUBROGATION
The Reinsurers shall be credited with salvage (i.e.,
reimbursement obtained or recovery made by the Reassured, less
the actual cost, excluding salaries of officials and employees of
the Reassured and sums paid to attorneys as retainer, of
obtaining such reimbursement or making such recovery) on account
of claims and settlements involving reinsurance hereunder.
Salvage thereon shall always be used to reimburse the excess
carriers in the reverse order of their priority according to
their participation before being used in any way to reimburse the
Reassured for its primary loss. The Reassured hereby agrees to
enforce its rights to salvage or subrogation relating to any
loss, a part of which loss was sustained by the Reinsurer, and to
prosecute all claims arising out of such rights
ARTICLE 14, PREMIUM
A. The premium due the Reinsurers shall be calculated by
applying a rate of .346% to the Reassured's gross net written
premium income during the term of this Contract.
The term "gross net written premium income" shall mean
gross premiums written on business covered hereunder less
premiums paid for reinsurance, recoveries under which would
reduce the loss under this Contract.
B. For purposes of this Contract, 100% of the Reassured's
written premium for property including Fire, Allied Lines, Inland
Marine, Section I of Farm owners Multiple Peril, Homeowners
Multiple Peril and Commercial Multiple Peril and Auto Physical
Damage excluding Collision shall be reported hereunder.
C. A deposit premium of $308,500, shall be payable to the
Reinsurers in four equal installments of $77,125, each, the first
payment being due at inception of this Contract and the second
and subsequent payments being payable as of April 1, July 1 and
October 1, 1997. This Contract shall be subject to a minimum
premium of $246,800. As promptly as possible after the
termination of this Contract, the Reassured shall render a
statement to the Reinsurers showing the actual reinsurance
premiums due hereunder, calculated as provided in Paragraph A. of
this ARTICLE 14., PREMIUM, and, if the premium so calculated is
greater than the deposit premium, the additional premium shall
hereupon be paid to the Reinsurers. If the premium so calculated
in Paragraph A. of this ARTICLE 14., PREMIUM, is less than the
minimum premium, Reinsurers will immediately return the
difference between the minimum premium and the deposit premium
previously paid by the Reassured. If the premium calculated in
Paragraph A. of this ARTICLE 14., PREMIUM, is greater than the
minimum premium but less than the deposit premium. Reinsurers
will immediately return the difference between the reinsurance
premium due and the deposit premium previously paid by the
Reassured.
Towers Perrin
Reinsurance
ARTICLE 15.,CURRENCY
Whenever the word "Dollars" or the I" sign appears in
this Contract, they shall be construed to mean United States
Dollars and all transactions under this Contract shall be in
United States Dollars.
Amounts paid or received by the Reassured in any other
currency shall be converted to United States Dollars at the rate
of exchange at the date such transaction is entered on the books
of the Reassured.
ARTICLE 16., ERRORS AND OMISSIONS
Inadvertent delays, errors or omissions made in
connection with this Contract shall not relieve either party from
any liability which would have attached had such delay, error or
omission not occurred, provided always that such delay, error or
omission shall be rectified as soon as possible after discovery
by the Reassured's Home Office.
ARTICLE 17., TAXES
In consideration of the terms under which this Contract
is issued, the Reassured undertakes not to claim any deduction of
the premium hereon when making Canadian tax returns or when
making tax returns, other than income or profits tax returns, to
any state or territory of the United States of America or to the
District of Columbia.
ARTICLE 18., ACCESS TO RECORDS
The Reassured shall place at the disposal of the
Reinsurers at all reasonable times, and the Reinsurers shall have
the right to inspect through their designated representatives,
during the term of this Contract and thereafter, all books,
records and papers of the Reassured in connection with any
reinsurance hereunder, or the subject matter hereof.
ARTICLE 19., INTERMEDIARY
Towers Perrin Reinsurance is hereby recognized as the
Intermediary negotiating this Contract for all business
hereunder. All communications (including but not limited to
notices, statements, premium, return premium, commissions, taxes,
losses, loss adjustment expense, salvages and loss settlements
relating thereto shall be transmitted to the Reassured or the
Reinsurers through Towers Perrin Reinsurance, Mellon Bank Center,
1735 Market Street, Philadelphia, Pennsylvania, 19103-7501.
Payments by the Reassured to the Intermediary shall be deemed to
constitute payment to the Reinsurers. Payments by the Reinsurers
to the Intermediary shall be deemed to constitute payment to the
Reassured only to the extent that such payments are actually
received by the Reassured.
Towers Perrin
Reinsurance
ARTICLE 20., INSOLVENCY
A. In the event of insolvency of the Reassured, the
reinsurance under this Contract shall be payable by the
Reinsurers to the Reassured or to its liquidator, receiver, or
statutory successor on the basis of the liability of the
Reassured under the policy or policies reinsured without
diminution because of the insolvency of the Reassured.
B. It is further agreed that the liquidator, or receiver,
or statutory successor of the Reassured shall give written notice
to the Reinsurers of the pendency of any claim against the
Reassured on the policies reinsured within a reasonable time
after such claim is filed in the insolvency proceeding, and that
during the pendency of such claim the Reinsurers may investigate
such claim and interpose, at their own expense, in the proceeding
where such claim is to be adjudicated, any defense or defenses
which they may deem available to the Reassured or to its
liquidator, or receiver, or statutory successor. The expense
thus incurred by the Reinsurers shall be chargeable, subject to
court approval, against the Reassured as part of the expense of
liquidation to the extent of a proportionate share of the benefit
which may accrue to the Reassured solely as a result of the
defense undertaken by the Reinsurers.
ARTICLE 21., ARBITRATION
A. Any dispute or other matter in question between the
Reassured and the Reinsurers arising out of or relating to the
formation, interpretation, performance, or breach of this
Contract, whether such dispute arises before or after termination
of this Contract, shall be settled by arbitration. Arbitration
shall be initiated by the delivery of a written notice of demand
for arbitration by one party to the other within a reasonable
time after the dispute has arisen.
B. If more than one Reinsurer is involved in the same
dispute, all such Reinsurers shall constitute and act as one
party for the purposes of this ARTICLE 21., ARBITRATION,
provided, however, that nothing herein shall impair the rights of
such Reinsurers to assert several, rather than joint, defenses or
claims, nor be construed as changing the liability of the
Reinsurers under the terms of this Contract from several to
joint.
C. Each party shall appoint an individual as arbitrator
and the two so appointed shall then appoint a third arbitrator.
If either party refuses or neglects to appoint an arbitrator
within sixty days, the other party may appoint the second
arbitrator. If the two arbitrators do not agree on a third
arbitrator within sixty days of their appointment, each of the
arbitrators shall nominate three individuals. Each arbitrator
shall then decline two of the nominations presented by the other
arbitrator. The third arbitrator shall then be chosen from the
remaining two nominations by drawing lots. The arbitrators shall
be active or retired officers of insurance or reinsurance
companies or Lloyd's London Underwriters; the arbitrators shall
not have a personal or financial interest in the result of the
arbitration.
Towers Perrin
Reinsurance
D. The arbitration hearings shall be held in Englewood,
Colorado, or such other place as may be mutually agreed. Each
party shall submit its case to the arbitrators within sixty days
of the selection of the third arbitrator or within such longer
period as may be agreed by the arbitrators. The arbitrators
shall not be obliged to follow judicial formalities or the rules
of evidence except to the extent required by governing law, that
is, the state law of the situs of the arbitration as herein
agreed; they shall make their decisions according to the practice
of the reinsurance business. The decision rendered by a majority
of the arbitrators shall be final and binding on both parties.
Such decision shall be a condition precedent to any right of
legal action arising out of the arbitrated dispute which either
party may have against the other. Judgment upon the award
rendered may be entered in any court having jurisdiction thereof.
E. Each party shall pay the fee and expenses of its own
arbitrator and one-half of the fee and expenses of the third
arbitrator. All other expenses of the arbitration shall be
equally divided between the parties.
F. Except as provided above, arbitration shall be
based, insofar as applicable, upon the procedures of the American
Arbitration Association.
G. In the event of the insolvency of the Reassured,
all arbitration proceedings must also be subject to the laws of
the state of Colorado.
ARTICLE 22., RESERVES
A. If a jurisdiction of the United States will not permit
the Reassured, in the statements required to be filed with its
regulatory authority(ies), to receive full credit as admitted
reinsurance for any Reinsurers share of obligations, the
Reassured shall forward to such Reinsurer a statement of the
Reinsurer's share of such obligations. Upon receipt of such
statement the Reinsurer shall promptly apply for, and provide the
Reassured with, a "clean," unconditional and irrevocable Letter
of Credit, in the amount specified in the statement submitted,
with terms and bank acceptable to the regulatory authority(ies)
having jurisdiction over the Reassured. An acceptable bank is a
"qualified United States Financial institution" as defined by
Regulation No. 10-1-102 (9.5) promulgated by the Colorado
Insurance Department.
B. "Obligations," as used in this ARTICLE 22., RESERVES,
shall mean the sum of losses paid and allocated loss adjustment
expenses paid by the Reassured but not yet recovered from the
Reinsurer, plus reserves for reported losses and allocated loss
adjustment expenses. It shall not include reserves for losses
incurred but not reported.
C. The Reinsurer hereby agrees that the Letter of Credit
will provide for automatic extension of the Letter of Credit
without amendment for one year from the date of expiration of
said Letter or any future expiration date unless thirty (30) days
prior to any expiration the issuing bank shall notify the
Reassured by registered mail that the issuing bank elects not to
consider the Letter of Credit renewed for any additional period.
Towers Perrin
Reinsurance
D. Notwithstanding any other provision of this Contract,
the Reassured or any successor by operation of law of the
Reassured including, without limitation, any liquidator,
rehabilitator, receiver or conservator of the Reassured may draw
upon such credit, without diminution because of the insolvency of
any party hereto, at any time and undertakes to use and apply
such credit for one or more of the following purposes only:
1 To pay the Reinsurers share or to reimburse the
Reassured for the
Reinsurers share of any obligations, as
stipulated in the statement
submitted by the Reassured to the Reinsurer, which
is due to the
Reassured and not otherwise paid by the
Reinsurer. In the event the
Reassured has received effective notice of non-
renewal of the
Letter of Credit and the Reinsurer's liability
remains unliquidated and
undischarged thirty (30) days prior to the expiry
date of the Letter of
Credit, to withdraw the balance of the Letter of
Credit and place such
sums in an interest bearing trust account to
secure the continuing
liabilities of the Reinsurer under this
Contract until a renewal Letter of
Credit acceptable to the regulatory authority(ies)
having jurisdiction over
the Reassured, or a substitute in lieu thereof
acceptable to the regulatory
authority(ies) having jurisdiction over the
Reassured, has been received by
the Reassured. The Reassured shall provide to the
Reinsurer payment of
any interest thereon accruing from such account.
3. To make refund of any sum which is in excess of the
actual amount required for Sub-paragraphs 1. and 2. of
this Paragraph D., of ARTICLE 22., RESERVES.
E. At annual intervals or more frequently as determined by the
Reassured, but never more frequently than quarterly, the
Reassured shall prepare a specific statement, for the sole
purpose of amending the Letter of Credit, of the Reinsurer's
share of any obligations. If the statement shows that the
Reinsurer's share of obligations exceeds the balance of credit as
of the statement date, the Reinsurer shall, within thirty (30)
days after receipt of notice of such excess, secure delivery to
the Reassured of an amendment of the Letter of Credit increasing
the amount of credit by the amount of such difference. If the
statement shows, however, that the Reinsurer's share of
obligations is less than the balance of credit as of the
statement date, the Reassured shall, within thirty (30) days
after receipt of written request from the Reinsurer, release such
excess credit by agreeing to secure an amendment to the Letter of
Credit reducing the amount of credit available by the amount of
such excess credit.
F. The bank shall have no responsibility whatsoever in
connection with the propriety of withdrawals made by the
Reassured or the disposition of funds withdrawn, except to assure
that withdrawals are made only upon the order of properly
authorized representatives of the Reassured. The Reassured shall
incur no obligation to the bank in acting upon the credit, other
than as appears in the express terms thereof.
Towers Perrin
Reinsurance
ARTICLE 23.,SERVICE OF SUIT (Paragraphs A. and S. of this
ARTICLE 23.,
SERVICE OF SUIT, only apply to
Reinsurers domiciled
outside of the United States and/or
unauthorized in the
State of New York)
A. It is agreed that in the event of the failure of the
Reinsurers hereon to pay any amount claimed to be due hereunder,
the Reinsurers hereon, at the request of the Reassured, will
submit to the jurisdiction of a Court of competent jurisdiction
within the United States. Nothing in this ARTICLE 23., SERVICE
OF SUIT, constitutes or should be understood to constitute a
waiver of Reinsurers' rights to commence an action in any Court
of competent jurisdiction in the United States, to remove an
action to a United States District Court, or to seek a transfer
of a case to another Court as permitted by the laws of the United
States or of any State in the United States. It is further
agreed that service of process in such suit may be made upon
Mendes and Mount, 750 Seventh Avenue, New York, New York 10019-
6829, and that in any suit instituted against any one of them
upon this Contract, such Reinsurer(s) will abide by the final
decision of such Court or of any Appellate Court in the event of
an appeal.
B. The above-named are authorized and directed to accept
service of process on behalf of Reinsurers in any such suit
and/or upon the request of the Reassured to give a written
undertaking to the Reassured that they will enter a general
appearance upon Reinsurers' behalf in the event such a suit shall
be instituted.
C. Further, pursuant to any statute of any state,
territory or district of the United States which makes provision
therefore, Reinsurers hereon 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 Reassured or any beneficiary
hereunder arising out of this Contract of reinsurance, and hereby
designate the above-named as the person to whom the said officer
is authorized to mail such process or a true copy thereof.
ARTICLE 24., OFFSET
The Reassured or the Reinsurer may offset any balance
allowed by Colorado law, statute or regulation, whether on
account of premium, commission, claims or losses, loss adjustment
expenses, recoveries, salvage, or any other amount due from one
party to the other under this Contract or any other contract
heretofore or hereafter entered into between the Reassured and
the Reinsurer, whether acting as assuming reinsurer or ceding
company. This right of offset shall not be affected by the
insolvency of either the Reassured or the Reinsurer.
Towers Perrin
Reinsurance
ARTICLE 25., ENTIRE AGREEMENT
This agreement embodies the whole agreement of the
parties and there are no promises, terms, conditions, obligations
other than those contained herein.
MRM:cam
Doc#: 46665 January 16,
1997
Towers Perrin
Reinsurance
U. S. A.
Nuclear Incident Exclusion Clause_Physical Damage_Reinsurance
1. This reinsurance does not cover any loss or liability accruing
to the Reassured. directly or indirectly and whether as Insurer
or Reinsurer.
from any Pool of Insurers or Reinsurers formed for the purpose of
covering Atomic or Nuclear Energy risks.
2. Without in any way restricting the operation of paragraph (1)
of this Clause. this reinsurance does not cover any loss or
liability accruing to the Reassured. directly or indirectly and
whether as Insurer or Reinsurer. from any insurance against
Physical Damage (including business interruption or consequential
loss, arising out of such Physical Damage) to:
I. Nuclear reactor power plants including all auxiliary
property on the site. or
II. Any other nuclear reactor installation including
laboratories handling radioactive materials in connection with
reactor installations,
and "critical facilities" as such. or
III. Installations for fabricating complete fuel elements or
for processing substantial quantities of "special nuclear
material," and for
reprocessing, salvaging, chemically separating,
storing or disposing of "spent" nuclear fuel or waste materials.
or
IV. Installations other than those listed in paragraph (2) III
above using substantial quantities, of radioactive isotopes or
other products of
nuclear fission.
3. Without in any way restricting the operations of paragraphs
(1) and (2) hereof, this reinsurance does not cover any lose or
liability by radio-active contamination accruing to the
Reassured. directly or indirectly, and whether as Insurer or
Reinsurer, from any insurance on property which is on the same
site as, a nuclear reactor power plant or other nuclear
installation and which normally would be insured therewith except
that this paragraph (3) shall not operate
(a) where Reassured does not have knowledge of
such nuclear reactor power plant or nuclear installation. or
(b) where said insurance contains a provision excluding coverage
for damage to property caused by or resulting from radioactive
termination. however caused. However on and after 1st January
1960 this subparagraph (b) shall only apply provided the said
radioactive contamination exclusion provision has been approved
by the Governmental Authority having jurisdiction thereof.
4. Without in any way restricting the operations of paragraphs
(1). (2) and (3) hereof. this reinsurance does not cover any lose
or liability by radioactive contamination accruing to the
Reassured, directly or indirectly. and whether as Insurer or
Reinsurer. when such radioactive contamination is a named hazard
specifically insured against.
5. It is understood and agreed that this Clause shall not
extend to risk, using radioactive isotopes in any form where the
nuclear exposure is not considered by the Reassured to be the
primary hazard.
6. The term "special nuclear material" shall have the meaning
given it in the Atomic Energy Act of 1954 or by any law
amendatory thereof.
7. Reassured to be sole judge of what constitutes:
(a) substantial quantities. and
(b) the extent of installation. plant or site.
NOTE-Without in any way restricting the operation of paragraph
(1) hereof. it in understood and agreed that
(a) all policies issued by the Reassured on or before Slat
December 1957 shall be free from the application of the
other provisions of this Clause until expiry date or Slat
December 1960 whichever first occurs whereupon all the
provisions of this Clause shall apply.
(b) with respect to any rink located in Canada policies issued
by the Reassured on or before Slat December 1958 shall be free
from the application of the other provisions of this Clause
until expiry date or 3lat December 1960 whichever first occurs,
whereupon all the provisions of this Clause shall Apply
Towers Perrin
Reinsurance
POOLS, ASSOCIATIONS AND SYNDICATES EXCLUSION CLAUSE
SECTION A
It is agreed that the following is excluded hereunder:
(1) All business derived directly or indirectly from any Pool,
Association or Syndicate which maintains its own reinsurance
facilities.
(2) Any Pool or Scheme, (whether voluntary or mandatory) formed
after 1 St March, 1 968 for the purpose of insuring property
whether on a country-wide basis or in respect of designated
areas. This exclusion 1h,11 not apply to so-coiled Automobile
Insurance Plans or other Pools formed to provide coverage for
Automobile Physical Damage.
SECTION 8
It is agreed that business written by the Reassured for the some
perils, which is known at the time to be insured by, or in excess
of underlying amounts placed in the following Pools, Associations
or Syndicates, whether by way of insurance or reinsurance, is
excluded hereunder.
Industrial Risk Insurers
Associated Factory Mutuals
Improved Risk Mutuals
Any Pool, Association or Syndicate formed for the purpose of
writing oil, gas or Petro-chemical plants and/or
oil or gas drilling rigs
United States Aircraft Insurance Group
Canadian Aircraft insurance Group
Associated Aviation Underwriters
American Aviation Underwriters
Section B does not apply:
(1) Where the Total Insured Value over all interests of the
risk in question is less then $250,000,000.
(2) to interests traditionally underwritten as Inland Marine or
Stock and/or Contents written on a Blanket Basis.
(3) to Contingent Business interruption, except when the
Reassured is aware that the key location is known at the time
to be insured in any Pool, Association or Syndicate named
above.
(4) to risks as follows:
offices, hotels, apartments. hospitals. educational
establishments, publications (other than railroad schedules) and
builder's risks on he classes of risks specified in this
subsection i4i only.
Where this Clause attaches to Catastrophe Excess of Loss
Reinsurance Agreements, the following SECTION C is
added;
SECTION C
Nevertheless the Reinsurers specifically agree that liability
accruing to the Reassured from its participation in:
(1) The following so-called 'Coastal Pools'
Alabama Insurance Underwriting Association
Florida Windstorm Underwriting Association
Louisiana Insurance Underwriting Association
Mississippi Windstorm Underwriting Association
North Carolina insurance Underwriting Association
South Carolina Windstorm and Hail Underwriting Association
Taxes Catastrophe Property Insurance Association
(2) All 'Fair Plan' Business. including but not limited to the
Florida Residential Property and Casualty Joint Underwriting
Association and the Florida Property and Casualty Joint
Underwriting Association; and oil 'Rural Risk Plan' Business.
for all perils otherwise protected hereunder shall not be
excluded, except that this reinsurance does not include any
increase in such liability resulting from:
(i) The inability of any other participant in such
'Coastal Pool' and/or 'Fair Plan' and/or 'Rural Risk Plan' to
meet its liability.
(iii) Any claim against such 'Coastal Pool' and/or 'Fair
Plan' and/or 'Rural Risk Plan' or any participant therein,
including the Reassured whether by way of subrogation or
otherwise, brought by or on behalf of any insolvency fund as
defined in the Insolvency Funds Exclusion Clause incorporated
in this Agreement).
Towers Perrin
Reinsurance