Common use of Protection and Indemnity Insurance Clause in Contracts

Protection and Indemnity Insurance. Commencing on the Delivery Date of each Vessel, the Mortgagor shall, without cost to the Mortgagee, keep each such Vessel insured against marine and war risk protection and indemnity risks and liabilities by policies of insurance approved by the Mortgagee as to form and in the amount of the Insurance Requirements; provided that, (1) the Mortgagor shall, as soon as possible before such Delivery Date, present any such policy to the Mortgagee (who shall promptly approve or disapprove the same), (2) any approval of a policy under this Subsection shall be effective until the end of the policy period or until sixty (60) days after the Mortgagee shall notify the Mortgagor of a desired change in the form and/or amount thereof, whichever shall first occur, and (3) war risk protection and indemnity insurance shall be required unless the Mortgagee gives notice to the Mortgagor stating that such insurance is not required. Such policies may provide that (1) if the Mortgagor shall not have incurred the loss, damage, or expense in question, any loss under such insurance may be paid directly to the Person to whom any liability covered by such policies has been incurred (whether or not a Default then exists), and (2) if the Mortgagor shall have incurred the loss, damage or expense in question, any such loss shall be paid to the Mortgagor in reimbursement if there is no existing Default of which the underwriter has written notice from the Mortgagor or the Mortgagee, or, if there is such an existing Default, to the Mortgagee to be held and applied as follows: (A) applied as provided in Section 5.04 hereof in the event the Guarantee shall have terminated pursuant to Section 2.04(c) of Annex C of the Agreement or if the Mortgagee shall have assumed the Mortgagor's rights and duties under the Note Purchase Agreement and the Note and made any payments in default under Chapter 537, or (B) to the extent not theretofore applied pursuant to Section 5.04 hereof, paid forthwith to the Mortgagor upon its Request in the event there is no existing Default or the Guarantee shall have terminated pursuant to Section 2.04(b) or (d) of Annex C of the Agreement at the date of delivery of such Request; provided that, irrespective of the foregoing, with the Mortgagee’s prior consent, the Mortgagor shall have the right to self-insure in an amount up to the Maximum Self-Insurance Amount hereof with respect to each accident, occurrence or event, except that, with respect to cargo or property carried, the Mortgagor, with the Mortgagee’s prior consent, shall have the right to self-insure in an amount up to the Maximum Self-Insurance Amount with respect to each cargo or property carried.

Protection and Indemnity Insurance. Commencing on Protection and indemnity insurance maintained with financially sound and reputable insurers or protection and indemnity associations and policies of protection and indemnity war risk insurance protecting the Delivery Date interests of each Mortgagor, and Mortgagee, against liability for property damage to third persons (including liability to any governmental authority or other person with respect to pollution liability) and personal injury or death to any person arising out of the maintenance, use, operation and ownership of the Vessel, cargo damage or loss, contractual liability and wreck removal, tower’s liability, crew liability, collision liability and pollution liability in such amounts as are usually carried by persons engaged in the Mortgagor shallsame or similar businesses; provided, without cost however, that in no event shall the amount of such insurance per person and per occurrence (subject to such deductible, reasonably acceptable to the Mortgagee) be less than the customary amount of cover available on the market from time to time with respect to vessels of the same type, keep age and trade as the Vessel. Such liability insurance shall name each such Vessel insured against marine of the Mortgagor, Mortgagee, and war risk protection and indemnity risks and liabilities by policies other interested persons as insureds (or in the case of insurance approved by the Mortgagee as to form and in the amount of the Insurance Requirements; provided that, (1) the Mortgagor shallco-insureds), as soon as possible before their respective interests may appear, but the proceeds of such Delivery Date, present any such policy policies shall be payable to the Mortgagee (who shall promptly approve or disapprove Person actually suffering the same)loss in respect of which such proceeds are payable; provided, (2) any approval of a policy under this Subsection shall be effective until the end of the policy period or until sixty (60) days after the however, that if Mortgagee shall notify have first notified the Mortgagor underwriters or brokers that a Mortgage Event of a desired change in the form and/or amount thereof, whichever shall first occur, and (3) war risk protection and indemnity insurance shall be required unless the Mortgagee gives notice Default hereunder has occurred then all such proceeds otherwise payable to the Mortgagor stating that such insurance is not required. Such policies may provide that (1) if the Mortgagor shall not have incurred the loss, damage, or expense in question, any loss under such insurance may be paid directly to the Person to whom any liability covered by such policies has been incurred (whether or not a Default then exists), and (2) if the Mortgagor shall have incurred the loss, damage or expense in question, any such loss shall be paid thereafter payable to the Mortgagor in reimbursement if there is no existing Default of which the underwriter has written notice from the Mortgagor or the Mortgagee, or, if there is such an existing Default, Mortgagee for distribution to the Mortgagee to be held itself and applied others as follows: (A) applied their interests may appear as provided in Section 5.04 hereof in the event the Guarantee shall have terminated pursuant to Section 2.04(c) of Annex C of the Agreement or if the Mortgagee shall have assumed the Mortgagor's rights and duties under the Note Purchase Agreement and the Note and made any payments in default under Chapter 537, or (B) to the extent not theretofore applied pursuant to Section 5.04 hereof, paid forthwith to the Mortgagor upon its Request in the event there is no existing Default or the Guarantee shall have terminated pursuant to Section 2.04(b) or (d) of Annex C of the Agreement at the date of delivery of such Request; provided that, irrespective of the foregoing, with the Mortgagee’s prior consent, the Mortgagor shall have the right to self-insure in an amount up to the Maximum Self-Insurance Amount hereof with respect to each accident, occurrence or event, except that, with respect to cargo or property carried, the Mortgagor, with the Mortgagee’s prior consent, shall have the right to self-insure in an amount up to the Maximum Self-Insurance Amount with respect to each cargo or property carriedhereinafter set forth.

Protection and Indemnity Insurance. Commencing on the Delivery Closing Date of each Vessel, the Mortgagor Shipowner shall, without cost to the MortgageeAdministrator, keep each such Vessel insured against marine and war risk protection and indemnity risks and liabilities by policies of insurance approved by the Mortgagee Administrator as to form and in the amount of the Insurance Requirements; provided that, (1) the Mortgagor Shipowner shall, as soon as possible before such Delivery Closing Date, present any such policy certificate of entry to the Mortgagee Administrator (who shall promptly approve or disapprove the same), (2) any approval of a policy under this Subsection shall be effective until the end of the policy period or until sixty (60) days after the Mortgagee Administrator shall notify the Mortgagor Shipowner of a desired change in the form and/or amount thereof, whichever shall first occur, and (3) war risk protection and indemnity insurance shall be required unless the Mortgagee Administrator gives notice to the Mortgagor Shipowner stating that such insurance is not required. Such policies may provide that (1) if the Mortgagor Shipowner shall not have incurred the loss, damage, or expense in question, any loss under such insurance may be paid directly to the Person to whom any liability covered by such policies has been incurred (whether or not a Default then exists), and (2) if the Mortgagor Shipowner shall have incurred the loss, damage or expense in question, any such loss shall be paid to the Mortgagor Shipowner in reimbursement if there is no existing Default of which the underwriter has written notice from the Mortgagor Shipowner or the MortgageeAdministrator, or, if there is such an existing Default, to the Mortgagee Administrator to be held and applied as follows: (A) applied as provided in Section 5.04 14.04 hereof in the event the Guarantee shall have terminated pursuant to Section 2.04(c2.04(b)(3) of Annex C of the Agreement or if the Mortgagee Administrator shall have assumed the MortgagorShipowner's rights and duties under the Note Purchase Agreement and the Note and made any payments in default under Chapter 537, or (B) to the extent not theretofore applied pursuant to Section 5.04 hereof14.04 of the Agreement, paid forthwith to the Mortgagor Shipowner upon its Request in the event there is no existing Default or the Guarantee shall have terminated pursuant to Section 2.04(b2.04(b)(1), (2) or (d4) of Annex C of the Agreement at the date of delivery of such Request; provided that, irrespective of the foregoing, with the MortgageeAdministrator’s prior consent, the Mortgagor Shipowner shall have the right to self-insure in an amount up to the Maximum Self-Insurance Amount hereof with respect to each accident, occurrence or event, except that, with respect to cargo or property carried, the MortgagorShipowner, with the MortgageeAdministrator’s prior consent, shall have the right to self-insure in an amount up to the Maximum Self-Insurance Amount set forth on Annex A of the Agreement with respect to each cargo or property carried.

Protection and Indemnity Insurance. Commencing on the Delivery Date of each Vessel, the Mortgagor Shipowner shall, without cost to the MortgageeAdministrator, keep each such Vessel insured against marine and war risk protection and indemnity risks and liabilities by policies of insurance approved by the Mortgagee Administrator as to form and in the amount of the Insurance Requirements; provided that, (1) the Mortgagor Shipowner shall, as soon as possible before such Delivery Date, present any such policy to the Mortgagee Administrator (who shall promptly approve or disapprove the same), (2) any approval of a policy under this Subsection shall be effective until the end of the policy period or until sixty (60) days after the Mortgagee Administrator shall notify the Mortgagor Shipowner of a desired change in the form and/or amount thereof, whichever shall first occur, and (3) war risk protection and indemnity insurance shall be required unless the Mortgagee Administrator gives notice to the Mortgagor Shipowner stating that such insurance is not required. Such policies may provide that (1) if the Mortgagor Shipowner shall not have incurred the loss, damage, or expense in question, any loss under such insurance may be paid directly to the Person to whom any liability covered by such policies has been incurred (whether or not a Default then exists), and (2) if the Mortgagor Shipowner shall have incurred the loss, damage or expense in question, any such loss shall be paid to the Mortgagor Shipowner in reimbursement if there is no existing Default of which the underwriter has written notice from the Mortgagor Shipowner or the MortgageeAdministrator, or, if there is such an existing Default, to the Mortgagee Administrator to be held and applied as follows: (A) applied as provided in Section 5.04 14.04 hereof in the event the Guarantee shall have terminated pursuant to Section 2.04(c) of Annex C of the Agreement hereof or if the Mortgagee Administrator shall have assumed the MortgagorShipowner's rights and duties under the Note Purchase Agreement and the Note and made any payments in default under Chapter 537, or (B) to the extent not theretofore applied pursuant to Section 5.04 14.04 hereof, paid forthwith to the Mortgagor Shipowner upon its Request in the event there is no existing Default or the Guarantee shall have terminated pursuant to Section 2.04(b) or (d) of Annex C of the Agreement hereof at the date of delivery of such Request; provided that, irrespective of the foregoing, with the MortgageeAdministrator’s prior consent, the Mortgagor Shipowner shall have the right to self-insure in an amount up to the Maximum Self-Insurance Amount hereof with respect to each accident, occurrence or event, except that, with respect to cargo or property carried, the MortgagorShipowner, with the MortgageeAdministrator’s prior consent, shall have the right to self-insure in an amount up to the Maximum Self-Insurance Amount set forth on Annex A of this Agreement with respect to each cargo or property carried.

Protection and Indemnity Insurance. Commencing on Protection and indemnity insurance maintained with financially sound and reputable insurers or protection and indemnity associations and policies of protection and indemnity war risk insurance protecting the Delivery Date interests of each Mortgagor, and Mortgagee, against liability for property damage to third persons (including liability to any governmental authority or other person with respect to pollution liability) and personal injury or death to any person arising out of the maintenance, use, operation and ownership of the Vessel, cargo damage or loss, contractual liability and wreck removal, tower’s liability, crew liability, collision liability and oil pollution liability in such amounts as are usually carried by persons engaged in the Mortgagor shallsame or similar businesses; provided, without cost however, that in no event shall the amount of such insurance per person and per occurrence (subject to such deductible, reasonably acceptable to the Mortgagee) be less than the customary amount of cover available on the market from time to time with respect to vessels of the same type, keep age and trade as the Vessel. Such liability insurance shall name each such Vessel insured against marine of the Mortgagor, Mortgagee, and war risk protection and indemnity risks and liabilities by policies other interested persons as insureds (or in the case of insurance approved by the Mortgagee as co-insureds), as their respective interests may appear, but the proceeds of such policies shall be payable to form and the Person actually suffering the loss in respect of which such proceeds are payable; provided, however, that if Mortgagee shall have first notified the amount underwriters or brokers that a Mortgage Event of the Insurance Requirements; provided that, (1) Default hereunder has occurred then all such proceeds otherwise payable to the Mortgagor shallshall be thereafter payable to Mortgagee for distribution to itself and others as their interests may appear as hereinafter set forth. Cause to be effected, if the Vessel is involved in towing, tower’s liability insurance, in such amount as soon as possible before such Delivery Date, present any such policy to the Mortgagee (who shall promptly approve or disapprove the same)may require, (2) any approval of a policy under this Subsection shall be effective until the end of the policy period or until sixty (60) days after the Mortgagee shall notify the Mortgagor of a desired change in the form and/or amount thereof, whichever shall first occur, and (3) war risk PROVIDED THAT such protection and indemnity insurance (including tower’s liability insurance) shall be required unless the Mortgagee gives notice to the Mortgagor stating that placed with such insurance is not required. Such policies may provide that (1) if the Mortgagor shall not have incurred the losscompanies, damage, under-writers or expense in question, any loss under such insurance fund as may be paid directly to the Person to whom any liability covered approved by such policies has been incurred (whether or not a Default then exists), and (2) if the Mortgagor shall have incurred the loss, damage or expense in question, any such loss shall be paid to the Mortgagor in reimbursement if there is no existing Default of which the underwriter has written notice from the Mortgagor or the Mortgagee, or, if there is such an existing Default, to the Mortgagee to be held and applied as follows: (A) applied as provided in Section 5.04 hereof in the event the Guarantee shall have terminated pursuant to Section 2.04(c) of Annex C of the Agreement or if the Mortgagee shall have assumed the Mortgagor's rights and duties under the Note Purchase Agreement and the Note and made any payments in default under Chapter 537, or (B) to the extent not theretofore applied pursuant to Section 5.04 hereof, paid forthwith to the Mortgagor upon its Request in the event there is no existing Default or the Guarantee shall have terminated pursuant to Section 2.04(b) or (d) of Annex C of the Agreement at the date of delivery of such Request; provided that, irrespective of the foregoing, with the Mortgagee’s prior consent, the Mortgagor shall have the right to self-insure in an amount up to the Maximum Self-Insurance Amount hereof with respect to each accident, occurrence or event, except that, with respect to cargo or property carried, the Mortgagor, with the Mortgagee’s prior consent, shall have the right to self-insure in an amount up to the Maximum Self-Insurance Amount with respect to each cargo or property carried.;

Protection and Indemnity Insurance. Commencing on the Closing Date and the subsequent Delivery Date of each Vessel, the Mortgagor shall, without cost to the Mortgagee, keep each such Vessel insured against marine and war risk protection and indemnity risks and liabilities by policies of insurance approved by the Mortgagee as to form and in the amount of the Insurance Requirements; provided that, (1) the Mortgagor shall, as soon as possible before such Closing Date or Delivery Date, present any such policy certificate of entry, or other documentation of protection and indemnity insurance coverage as the Administrator may require, to the Mortgagee (who shall promptly approve or disapprove the same), (2) any approval of a policy under this Subsection shall be effective until the end of the policy period or until sixty (60) days after the Mortgagee shall notify the Mortgagor of a desired change in the form and/or amount thereof, whichever shall first occur, and (3) war risk protection and indemnity insurance shall be required unless the Mortgagee gives notice to the Mortgagor stating that such insurance is not required. Such policies may provide that (1) if the Mortgagor shall not have incurred the loss, damage, or expense in question, any loss under such insurance may be paid directly to the Person to whom any liability covered by such policies has been incurred (whether or not a Default then exists), and (2) if the Mortgagor shall have incurred the loss, damage or expense in question, any such loss shall be paid to the Mortgagor in reimbursement if there is no existing Default of which the underwriter has written notice from the Mortgagor or the Mortgagee, or, if there is such an existing Default, to the Mortgagee to be held and applied as follows: (A) applied as provided in Section 5.04 hereof in the event the Guarantee shall have terminated pursuant to Section 2.04(c2.04(b)(3) of Annex C of the Agreement or if the Mortgagee shall have assumed the Mortgagor's rights and duties under the Note Purchase Agreement and the Note and made any payments in default under Chapter 537, or (B) to the extent not theretofore applied pursuant to Section 5.04 hereof, paid forthwith to the Mortgagor upon its Request in the event there is no existing Default or the Guarantee shall have terminated pursuant to Section 2.04(b) 2.04(b)(1), (2), or (d4) of Annex C of the Agreement at the date of delivery of such Request; provided that, irrespective of the foregoing, with the Mortgagee’s prior consent, the Mortgagor shall have the right to self-insure in an amount up to the Maximum Self-Insurance Amount hereof with respect to each accident, occurrence or event, except that, with respect to cargo or property carried, the Mortgagor, with the Mortgagee’s prior consent, shall have the right to self-insure in an amount up to the Maximum Self-Insurance Amount with respect to each cargo or property carried.

Protection and Indemnity Insurance. Commencing on the Delivery Closing Date of each Vessel, the Mortgagor Shipowner shall, without cost to the MortgageeAdministrator, keep each such Vessel insured against marine and war risk protection and indemnity risks and liabilities by policies of insurance approved by the Mortgagee Administrator as to form and in the amount of the Insurance Requirements; provided that, (1) the Mortgagor Shipowner shall, as soon as possible before such Delivery Closing Date, present any such policy certificate of entry to the Mortgagee Administrator (who shall promptly approve or disapprove the same), (2) any approval of a policy under this Subsection shall be effective until the end of the policy period or until sixty (60) days after the Mortgagee Administrator shall notify the Mortgagor Shipowner of a desired change in the form and/or amount thereof, whichever shall first occur, and (3) war risk protection and indemnity insurance shall be required unless the Mortgagee Administrator gives notice to the Mortgagor Shipowner stating that such insurance is not required. Such policies may provide that (1) if the Mortgagor Shipowner shall not have incurred the loss, damage, or expense in question, any loss under such insurance may be paid directly to the Person to whom any liability covered by such policies has been incurred (whether or not a Default then exists), and (2) if the Mortgagor Shipowner shall have incurred the loss, damage or expense in question, any such loss shall be paid to the Mortgagor Shipowner in reimbursement if there is no existing Default of which the underwriter has written notice from the Mortgagor Shipowner or the MortgageeAdministrator, or, if there is such an existing Default, to the Mortgagee Administrator to be held and applied as follows: (A) applied as provided in Section 5.04 14.04 hereof in the event the Guarantee shall have terminated pursuant to Section 2.04(c2.04(b)(3) of Annex C of the Agreement hereof or if the Mortgagee Administrator shall have assumed the MortgagorShipowner's rights and duties under the Note Purchase Agreement and the Note and made any payments in default under Chapter 537, or (B) to the extent not theretofore applied pursuant to Section 5.04 14.04 hereof, paid forthwith to the Mortgagor Shipowner upon its Request in the event there is no existing Default or the Guarantee shall have terminated pursuant to Section 2.04(b2.04(b)(1), (2) or (d4) of Annex C of the Agreement hereof at the date of delivery of such Request; provided that, irrespective of the foregoing, with the MortgageeAdministrator’s prior consent, the Mortgagor Shipowner shall have the right to self-insure in an amount up to the Maximum Self-Insurance Amount hereof with respect to each accident, occurrence or event, except that, with respect to cargo or property carried, the MortgagorShipowner, with the MortgageeAdministrator’s prior consent, shall have the right to self-insure in an amount up to the Maximum Self-Insurance Amount set forth on Annex A of this Agreement with respect to each cargo or property carried.