Exhibit 10(J)
ADDENDUM #1 TO
AGGREGATE CATASTROPHE EXCESS OF LOSS
RETROCESSION AGREEMENT
between
EMC REINSURANCE COMPANY
and
EMPLOYERS MUTUAL CASUALTY COMPANY
Effective January 1, 1992, this Agreement is amended as follows:
1. ARTICLE 2 - COVER - is amended by substituting
"ultimate net retained losses of $2,500,000" in line 3,
in lieu of "ultimate net retained losses of $2,000,000".
2. ARTICLE 3 - TERM. The first paragraph is replaced from
inception with the following:
This Agreement shall become effective for the annual
period beginning 12:01 A.M., Central Standard Time
January 1, 1991, and ending 12:01 A.M., Central
Standard Time, January 1, 1992; and is further
automatically extended for each subsequent annual period
from January 1, 1992 until amended by the parties or
until terminated.
3. ARTICLE 8 - PREMIUM is replaced by the following:
Effective January 1, 1992 the Company will pay the
Reinsurer a premium of $380,000 for each annual term of
this Agreement, to be paid in equal installments of
$95,000 on the first day of January, April, July and
October.
IN WITNESS WHEREOF, the parties hereto have caused this Addendum
to be executed, by the Company, this 9th day of January, 1992.
EMC REINSURANCE COMPANY
Des Moines, Iowa
/s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, President
---------------------------------
and by the Reinsurer on this 9th day of January, 1992.
EMPLOYERS MUTUAL CASUALTY COMPANY
Des Moines, Iowa
/s/ ▇▇▇▇ ▇▇▇▇▇▇, C.E.O. & Chairman
----------------------------------
ADDENDUM #2 TO
AGGREGATE CATASTROPHE EXCESS OF LOSS
RETROCESSION AGREEMENT
between
EMC REINSURANCE COMPANY
and
EMPLOYERS MUTUAL CASUALTY COMPANY
Effective January 1, 1993, this Agreement is amended as follows:
ARTICLE 8 - PREMIUM is replaced by the following:
Effective January 1, 1993, the Company will pay the
Reinsurer a premium of $500,000 for each annual term of this
Agreement, to be paid in equal installments of $125,000 on
the first day of January, April, July and October.
IN WITNESS WHEREOF, the parties hereto have caused this Addendum
to be executed, by the Company, this 8th day of December, 1992.
EMC REINSURANCE COMPANY
Des Moines, Iowa
/s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇, President
--------------------------------
and by the Reinsurer on this 8th day of December 1992.
EMPLOYERS MUTUAL CASUALTY COMPANY
Des Moines, Iowa
/s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇, President
---------------------------------
ADDENDUM #3 TO
AGGREGATE CATASTROPHE EXCESS OF LOSS
RETROCESSION AGREEMENT
between
EMC REINSURANCE COMPANY
and
EMPLOYERS MUTUAL CASUALTY COMPANY
Effective January 1, 1995, this Agreement is amended as follows:
I Article 2 - Cover is amended to read as follows:
The Reinsurer will be liable in respect of Loss Occurrences
in the Aggregate for 100% of the Ultimate Net Retained Loss
over and above initial Ultimate Net Retained Losses of
$3,000,000 in the Aggregate, irrespective of the number of
Loss Occurrences or the number or kinds of risks involved,
subject to a limit of liability to the Reinsurer of
$2,000,000; but only those Loss Occurrences exceeding a
franchise of $200,000 shall be subject to this cover. The
maximum liability of the Reinsurer under this Agreement, is
$2,000,000.
II Article 10 - Reinstatement is deleted.
IN WITNESS WHEREOF, the parties hereto have caused this
Addendum to be executed, by the Company, this 5th day of October
1994.
EMC REINSURANCE COMPANY
Des Moines, Iowa
/s/ ▇▇▇ ▇▇▇▇▇▇▇▇▇▇
----------------------
President
and by the Reinsurer on this 5th day of October 1994.
EMPLOYERS MUTUAL CASUALTY COMPANY
Des Moines, Iowa
/s/ ▇▇▇▇▇ ▇▇▇▇▇▇
---------------------------------
President
EMC REINSURANCE COMPANY
AGGREGATE CATASTROPHE EXCESS OF LOSS
RETROCESSION AGREEMENT
EFFECTIVE: January 1, 1991
TABLE OF CONTENTS
-----------------
ARTICLE SUBJECT PAGE(S)
---------------- ------------------------------ ---------
Preamble 1
1 Business Reinsured 1
2 Cover 1
3 Term 1,2
4 Territory 2
5 Definitions 2,3
6 Net Retained Lines 3
7 Exclusions 3,4
8 Premium 4
9 Currency 4
10 Reinstatement 4
11 Taxes 4
12 Reports 5
13 Notice of Loss & Loss Settlements 5
14 Extra Contractual Obligations 5,6
15 Errors & omissions 6
16 Inspection 6
17 Insolvency 6
18 Arbitration 6
19 Signing Page 7
AGGREGATE CATASTROPHE EXCESS OF LOSS
RETROCESSION AGREEMENT
This Agreement is made and entered into by and between EMC
REINSURANCE COMPANY, Des Moines, Iowa. (Hereinafter called the
"Company") and EMPLOYERS MUTUAL CASUALTY COMPANY, Des Moines, Iowa,
(Hereinafter called the "Reinsurer").
ARTICLE 1
---------
BUSINESS REINSURED
------------------
This Agreement is to indemnify the Company in respect of the net
excess liability as herein provided and specified which may accrue
to the Company as a result of any loss or losses which may occur
during the term of this Agreement under any Policies covering
Reinsurance Business in force, written or renewed by or on behalf
of the Company, subject to the terms and conditions herein
contained.
ARTICLE 2
---------
COVER
-----
The Reinsurer will be liable in respect of Loss Occurrences in the
Aggregate for 100% of the Ultimate Net Retained Loss over and above
initial Ultimate Net Retained Losses of $2,000,000 in the
Aggregate, irrespective of the number of Loss Occurrences or the
number or kinds of risks involved, subject to a limit of liability
to the Reinsurer of $2,000,000; but only those Loss Occurrences
exceeding a franchise of $200,000 shall be subject to this cover.
The maximum liability of the Reinsurer under this Agreement,
including liability reinstated, is $4,000,000.
ARTICLE 3
---------
TERM
----
This Agreement shall become effective at 12:01 A.M., Central
Standard Time, January 1, 1991, and shall remain in full force and
effect for one year, expiring 12:01 A.M., Central Standard Time,
January 1, 1992.
Upon expiration of this Agreement the entire liability of the
Reinsurer for losses occurring subsequent to expiration shall cease
concurrently with the expiration.
Should this Agreement expire while a loss covered hereunder is in
progress, the Reinsurer shall be responsible for the loss in
progress in the same manner and to the same extent it would have
been responsible had the Agreement expired the day following the
conclusion of the loss in progress.
ARTICLE 4
---------
TERRITORY
---------
This Agreement will cover worldwide.
ARTICLE 5
---------
DEFINITIONS
-----------
A. The term "Ultimate Net Retained Losses" as used in this
Agreement shall mean the aggregate actual losses paid by the
Company, or for which the Company becomes liable to pay; such
losses to include Extra Contractual Obligations as defined in
the EXTRA CONTRACTUAL OBLIGATIONS ARTICLE of this Agreement,
and expenses of litigation and interest, and all other loss
expense of the Company including subrogations, salvage, and
recovery expenses (office expenses and salaries of officials
and employees not classified as loss adjusters are not
chargeable as expenses for purposes of this paragraph), but
salvages and all recoveries, including recoveries under all
reinsurances (whether recovered or not), shall be first
deducted from such losses to arrive at the amount of liability
attaching hereunder. All reinsurances carried by the Company
or benefiting the Company in any way shall be deemed
reinsurances inuring to the benefit of this cover.
All salvages, recoveries or payments recovered or received
subsequent to loss settlement hereunder shall be applied as if
recovered or received prior to the aforesaid settlement and
all necessary adjustments shall be made by the parties hereto.
Nothing in this clause shall be construed to mean that losses
are not recoverable hereunder until the Company's Ultimate Net
Retained Losses have been ascertained.
B. 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.
C. The term "Policy" as used in this Agreement shall mean any
binder, policy, or contract of reinsurance issued, accepted or
held covered provisionally or otherwise, by or on behalf of the
Company.
D. "Franchise" as used in this Agreement means that when the
franchise is exceeded, the entire Loss Occurrence is subject to
coverage hereunder.
ARTICLE 6
---------
NET RETAINED LINES
------------------
This Agreement applies only to that portion of any reinsurances
covered by this Agreement which the Company retains net for its own
account, and in calculating the amount of any loss hereunder and
also in computing the amount in excess of which this Agreement
attaches, only loss or losses in respect of that portion of any
reinsurances which the Company retains net for its own account
shall be included, it being understood and agreed that the amount
of the Reinsurer's liability hereunder in respect of any loss or
losses shall not be increased by reason of the inability of the
Company 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.
ARTICLE 7
---------
EXCLUSIONS
----------
This Agreement does not cover:
A. Business assumed from any source other than the, Home Office
Reinsurance Underwriting Department of Employers Mutual
Casualty Company.
B. Business excluded by the attached Nuclear Incident Exclusion
Clauses: Physical Damage - Reinsurance - U.S.A., Physical
Damage and Liability - (Boiler and Machinery Policies)
Reinsurance - U.S.A., Liability - Reinsurance - U.S.A.
C. Financial Guarantee or Insolvency.
D. Pools, Associations, Syndicates per the attached. Pools,
Associations, Syndicates Exclusion Clause.
E. Life business other than accidental death and dismemberment.
F. Aviation business (including satellites).
G. Any loss arising from a pattern of violation of the Company's
letter of intent dated December 1, 1987 on Seepage and
Pollution, it being understood that the nature of the Business
covered hereunder precludes absolute enforcement of the
Company's intent in all instances.
ARTICLE 8
---------
PREMIUM
-------
The Company will pay the Reinsurer a premium of $320,000 for the
term of this Agreement, to be paid in the amount of $240,000 on
July 1, and $80,000 on October 1.
ARTICLE 9
---------
CURRENCY
--------
The currency to be used for all purposes of this Agreement shall be
United States of America currency.
ARTICLE 10
----------
REINSTATEMENT
-------------
Loss payments under this Agreement will reduce the limit of
coverage afforded by the amounts paid, but the limit of coverage
will be reinstated from the time of the occurrence of the loss and
for each amount so reinstated the Company agrees to pay an
additional premium calculated at pro rata of the Reinsurer's
premium for term of this Agreement, being pro rata only as to the
fraction of the face value of this Agreement (i.e., the fraction of
$2,000,000) so reinstated. The Company's initial retention of
$2,000,000 Ultimate Net Retained loss in the Aggregate shall
satisfy the retention requirement as to any coverage reinstated.
One full reinstatement only is provided by this Agreement.
ARTICLE 11
----------
TAXES
-----
The Company will be liable for taxes on premiums reported to the
Reinsurer hereunder.
ARTICLE 12
----------
REPORTS
-------
Within 60 days after the expiration of the Agreement, the Company
will furnish the Reinsurer with:
▇. ▇▇▇▇▇ Net Written Premium Income of the Company for the term of
this Agreement.
B. Any other information which the Reinsurer may require to
prepare its Annual Statement which is reasonably available to
the Company.
ARTICLE 13
----------
NOTICE OF LOSS AND LOSS SETTLEMENTS
-----------------------------------
The Company will advise the Reinsurer promptly of all claims which
in the opinion of the Company may involve the Reinsurer, and of all
subsequent developments on these claims which may materially affect
the position of the Reinsurer.
The Reinsurer agrees to abide by the loss settlements of the
Company, it being understood, however, that when so requested the
Company will afford the Reinsurer an opportunity to be associated
with the Company, at the expense of the Reinsurer, in the defense
of any claim or suit or proceeding involving this reinsurance and
that the Company will cooperate in every respect in the defense or
control of such claim, suit or proceeding.
The Reinsurer will pay its share of loss settlements immediately
upon receipt of proof of loss from the Company.
ARTICLE 14
----------
EXTRA CONTRACTUAL OBLIGATIONS
-----------------------------
This agreement shall also protect the Company within the limits
hereof where the Ultimate Net Loss includes any Extra Contractual
Obligations incurred by the Company. "Extra Contractual
Obligations" are defined as those liabilities not covered under any
other provision of this Agreement and which arise from the handling
of any claim on business covered hereunder, such liabilities
arising because of, but not limited to, the following: failure by
the Company to settle within the Policy limit, or by reason of
alleged or actual negligence, fraud or bad faith in rejecting an
offer of settlement or in the preparation of the defense or in the
trial of any action against its reinsured or in the preparation or
prosecution of an appeal consequent upon such action.
The date on which any Extra Contractual Obligation is incurred by
the Company shall be deemed, in all circumstances, to be the date
of the original accident, casualty, disaster, or Loss Occurrence.
ARTICLE 15
----------
ERRORS AND OMISSIONS
--------------------
Any inadvertent delay, omission or error shall not be held to
relieve either party hereto from any liability which would attach
to it hereunder if such delay, omission or error had not been made,
providing such delay, omission or error is rectified upon
discovery.
ARTICLE 16
----------
INSPECTION
----------
The Company shall place at the disposal of the Reinsurer at all
reasonable times, and the Reinsurer shall have the right to
inspect, through its authorized representatives, all books, records
and papers of the Company in connection with any reinsurance
hereunder, or claims in connection herewith.
ARTICLE 17
----------
INSOLVENCY
----------
In the event of the insolvency of the Company the attached General
Insolvency Clause No. 21-01 will apply.
ARTICLE 18
----------
ARBITRATION
-----------
Any irreconcilable dispute between the parties to this Agreement
will be arbitrated in Des Moines, Iowa in accordance with the
attached Arbitration Clause No. 22-01.
ARTICLE 19
----------
Executed by the Company, this 30th day of May 1991.
EMC REINSURANCE COMPANY
Des Moines, Iowa
/s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, President
---------------------------------
and by the Reinsurer this 30th day of May 1991.
EMPLOYERS MUTUAL CASUALTY COMPANY
Des Moines, Iowa
/s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇, President
---------------------------------
AGGREGATE CATASTROPHE EXCESS OF LOSS
RETROCESSION AGREEMENT
issued to
EMC REINSURANCE COMPANY
---------------------------
| EMC RE |
---------------------------
EMC Reinsurance Company
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
Mail Address: P.O. Box 712, Des Moines, Iowa 50303
May 24, 1991
To Whom It May Concern:
Re: Catastrophe Retrocessional Program
Seepage and Pollution Letter of Intent
-------------------------------------------
It is not the intention of the reassured to underwrite any
original or primary reinsurance treaty business (U.S.A.) that
does not contain a seepage and pollution exclusion clause where
legal and applicable. In respect of any retrocessional business,
the reassured will endeavor to ensure (as far as possible) that
clients reinsured adhere to a similar philosophy.
Very truly yours,
/s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
-------------------
▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
Vice President
POOLS, ASSOCIATIONS & SYNDICATES EXCLUSION CLAUSE
SECTION A:
Excluding:
(a) All business derived directly or indirectly from any
Pool, Association or Syndicate which maintains its own
reinsurance facilities.
(b) Any Pool or Scheme (whether voluntary or mandatory)
formed after March 1, 1968 for the purpose of insuring
property whether on a country-wide basis or in respect
of designated areas. This exclusion shall not apply to
so-called Automobile Insurance Plans or other Pools
formed to provide coverage for Automobile Physical
Damage.
SECTION B:
It is agreed that business written by the Company for the
same 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:
(a) Where The Total Insured Value over all interests of the
risk in question is less than $250,000,000.
(b) To interests traditionally underwritten as Inland
Marine or stock and/or contents written on a blanket
basis.
(c) To Contingent Business Interruption, except when the
Company is aware that the key location is known at the
time to be insured in any Pool, Association or
Syndicate named above, other than as provided for under
Section B(a).
(d) To risks as follows:
Offices, Hotels, Apartments, Hospitals, Educational
Establishments, Public Utilities (other than railroad
schedules) and builder's risks on the classes of risks
specified in this subsection (d) only.
Where this clause attaches to Catastrophe Excesses, the
following SECTION C is added:
Nevertheless the Reinsurer specifically agrees that
liability accruing to the Company from its participation in:
(1) The following so-called "Coastal Pools":
Alabama Insurance Underwriting Association
Florida Windstorm Underwriting Association
Louisiana Insurance Underwriting Association
Mississippi Insurance Underwriting Association
North Carolina Insurance Underwriting Association
South Carolina Windstorm and Hail Underwriting Association
Texas Catastrophe Property Insurance Association
AND
(2) All "Fair Plan" business
for all perils otherwise protected hereunder shall not be
excluded, except, however, that this reinsurance does not include
any increase in such liability resulting from:
(i) The inability of any other participant in such "Coastal
Pool" or Fair Plan to meet its liability.
(ii) Any claim against such "Coastal Pool" or Fair Plan, or
any participant therein, including the Company, whether
by way of subrogation or otherwise, brought by or on
behalf of any insolvency fund (as defined in the
Insolvency Fund Exclusion Clause incorporated in this
Contract).
35 A
NUCLEAR INCIDENT EXCLUSION CLAUSE- LIABILITY- REINSURANCE U.S.A.
----------------------------------------------------------------
(1) This reinsurance does not cover any loss or liability
accruing to the Reassured as a member of, or subscriber to,
any association of insurers or reinsurers formed for the
purpose of covering nuclear energy risks or as a direct or
indirect reinsurer of any such member, subscriber or
association.
(2) Without in any way restricting the operation of paragraph
(1) of this Clause it is understood and agreed that for all
purposes of this reinsurance all the original policies of
the Reassured (new, renewal and replacement) of the classes
specified in Clause II of this paragraph (2) from the time
specified in Clause III in this paragraph (2) shall be
deemed to include the following provision (specified as the
Limited Exclusion Provision):
LIMITED EXCLUSION PROVISION.*
I. It is agreed that the policy does not apply under any
liability coverage,
to: injury, sickness, disease, death or destruction
bodily injury or property damage,
with respect to which an
insured under the policy is also an insured under a
nuclear energy liability policy issued by Nuclear Energy
Liability Insurance Association, Mutual Atomic Energy
Liability Underwriters or Nuclear Insurance Association
of Canada, or would be an insured under any such policy
but for its termination upon exhaustion of its limit of
liability.
II. Family Automobile Policies (liability only), Special
Automobile Policies (private passenger automobiles,
liability only), Farmers Comprehensive Personal
Liability Policies (liability only), Comprehensive
Personal Liability Policies (liability only) or policies
of a similar nature; and the liability portion of
combination forms related to the four classes of
policies stated above, such as the Comprehensive
Dwelling Policy and the applicable types of Homeowners
Policies.
III. The inception dates and thereafter of all original
policies as described in II above, whether new, renewal
or replacement, being policies which either
(a) become effective on or after 1st May, 1960, or
(b) become effective before that date and contain the
Limited Exclusion Provision set out above;
provided this paragraph (2) shall not be applicable to
Family Automobile Policies, Special Automobile Policies,
or policies or combination policies of a similar nature,
issued by the Reassured on New York risks, until 90 days
following approval of the Limited Exclusion Provision by
the Governmental Authority having jurisdiction thereof.
(3) Except for those classes of policies specified in Clause II
of paragraph (2) and without in any way restricting the
operation of paragraph (1) of this Clause, it is understood
and agreed that for all purposes of this reinsurance the
original liability policies of the Reassured (new, renewal
and replacement) affording the following coverages:
January 1, 1990
35 A
Owners, Landlords and Tenants Liability, Contractual
Liability, Elevator Liability, Owners or Contractors
(including railroad) Protective Liability, Manufacturers and
Contractors Liability, Product Liability, Professional and
Malpractice Liability, Storekeepers Liability, Garage
Liability, Automobile Liability (including Massachusetts
Motor Vehicle or Garage Liability)
shall be deemed to include, with respect to such coverages, from
the time specified in Clause V of this paragraph (3), the
following provision (specified as the Broad Exclusion Provision):
BROAD EXCLUSION PROVISION.*
It is agreed that the policy does not apply:
I. Under any Liability Coverage, to: injury, sickness, disease,
death or destruction bodily injury or property damage
(a) with respect to which an insured under the policy is
also an insured under a nuclear energy liability policy
issued by Nuclear Energy Liability Insurance
Association, Mutual Atomic Energy Liability Underwriters
or Nuclear Insurance Association of Canada, or would be
an insured under any such policy but for its termination
upon exhaustion of its limit of liability; or
(b) resulting from the hazardous properties of nuclear
material and with respect to which (1) any person or
organization is required to maintain financial
protection pursuant to the Atomic Energy Act of 1954, or
any law amendatory thereof, or (2) the insured is, or
had this policy not been issued would be, entitled to
indemnity from the United States of America, or any
agency thereof, under any agreement entered into by tile
United States of America, or any agency thereof, with
any person or organization.
II. Under any Medical Payments Coverage, or under any
Supplementary Payments Provision
relating to: immediate medical or surgical relief,
first aid, to expenses incurred with respect
to: bodily injury, sickness, disease or death
bodily injury resulting from the hazardous
properties of nuclear material and arising out of the
operation of a nuclear facility by any person or
organization.
III. Under any Liability Coverage to: injury, sickness, desease,
death, or destruction bodily injury or property damage
resulting from the hazardous properties of nuclear material,
if
35 A
(a) the nuclear material (1) is at any nuclear facility owned
by, or operated by or on behalf of, an insured or (2) has
been discharged or dispersed therefrom;
(b) the nuclear material is contained in spent fuel or waste
at any time possessed, handled, used, processed, stored,
transported or disposed of by or on behalf of an insured;
or
(c) the: injury, sickness, disease, death or destruction
bodily injury or property damage, arises out of the
furnishing by an insured of services, materials, parts or
equipment in connection with the planning, construction,
maintenance, operation or use of any nuclear facility,
but if such facility is located within the United States
of America, its territories, or possessions or Canada,
this exclusion (c) applies only
to: injury to or destruction of property at such nuclear
facility
property damage to such nuclear facility and any
property thereat.
IV. As used in this endorsement:
"HAZARDOUS PROPERTIES" include radioactive, toxic or
explosive properties; "NUCLEAR MATERIAL" means source
material, special nuclear material or byproduct material;
"SOURCE MATERIAL," "SPECIAL NUCLEAR MATERIAL," and
"BYPRODUCT MATERIAL" have the meanings given them in the
Atomic Energy Act of 1954 or in any law amendatory thereof,
"SPENT FUEL" means any fuel element or fuel component, solid
or liquid, which has been used or exposed to radiation in a
nuclear reactor; "WASTE" means any waste material (1)
containing byproduct material and (2) resulting from the
operation by any person or organization of any nuclear
facility included within the definition of nuclear facility
under paragraph (a) or (b) thereof; "NUCLEAR FACILITY" means
(a) any nuclear reactor,
(b) any equipment or device designed or used for (1)
separating the isotopes of uranium or plutonium, (2)
processing or utilizing spent fuel, or (3) handling
processing or packaging waste,
(c) any equipment or device used for the processing,
fabricating or alloying of special nuclear material if
at any time the total amount of such material in the
custody of the insured at the premises where such
equipment or device is located consists of or contains
more than 25 grams of plutonium or uranium 233 or any
combination thereof, or more than 250 grams of uranium
235,
(d) any structure, basin, excavation, premises or place
prepared or used for the storage or disposal of waste,
January 1, 1990
35 A
and includes the site on which any of the foregoing is located,
all operations conducted on such site and all premises used for
such operations; "NUCLEAR REACTOR" means any apparatus designed
or used to sustain nuclear fission in a self-supporting chain
reaction or to contain a ▇▇▇▇▇▇▇▇ ▇▇▇▇ of fissionable material;
With respect to injury to or destruction
of property, the word "injury" or
"destruction" includes all forms of
radio active contamination of property.
"property damage" includes all
forms of radio active
contamination of property.
V. The inception dates and thereafter of all original policies
affording coverages specified in this paragraph (3),
whether new, renewal or replacement, being policies which
become effective on or after 1st May, 1960, provided this
paragraph (3) shall not be applicable to
(i) Garage and Automobile Policies issued by the Reassured
on New York risks, or
(ii) statutory liability insurance required under Chapter
90, General Laws of Massachusetts,
until 90 days following approval of the Broad Exclusion
Provision by the Governmental Authority having jurisdiction
thereof.
(4) Without in any way restricting the operation of paragraph
(1) of this Clause, it is understood and agreed that
paragraphs (2) and (3) above are not applicable to original
liability policies of the Reassured in Canada and that with
respect to such policies this Clause shall be deemed to
include the Nuclear Energy Liability Exclusion Provisions
adopted by the Canadian Underwriters' Association of the
Independent Insurance Conference of Canada.
*NOTE. The words printed in italics in the Limited Exclusion
Provision and in the Broad Exclusion Provision shall apply
only in relation to original liability policies which
include a Limited Exclusion Provision or a Broad Exclusion
Provision containing those words.
January 1, 1990
35 B
NUCLEAR INCIDENT EXCLUSION CLAUSE-PHYSICAL DAMAGE-
REINSURANCE U.S.A.
-------
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 loss
or liability by radioactive 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 contamination, however caused. However
on and after lst January 1960 this sub-paragraph (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
loss 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 risks using radioactive isotopes in any form where the
nuclear exposure is not considered by the Reassured to be the
primary hazard.
January 1, 1990
35 B
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 is understood and agreed that
(a) all policies issued by the Reassured on or before 3lst
December 1957 shall be free from the application of the
other provisions of this Clause until expiry date or
31st December 1960 whichever first occurs whereupon all
the provisions of this Clause shall apply,
(b) with respect to any risk located in Canada policies
issued by the Reassured on or before 31st December 1958
shall be free from the application of the other
provisions of this Clause until expiry date or 31 st
December 1960 whichever first occurs whereupon all the
provisions of this Clause shall apply.
January 1, 1990
35 E
NUCLEAR INCIDENT EXCLUSION CLAUSE
---------------------------------
PHYSICAL DAMAGE AND-LIABILITY
-----------------------------
(BOILER AND MACHINERY POLICIES) - REINSURANCE - U.S.A.
------------------------------------------------------
(1) This reinsurance does not cover any loss or liability
accruing to the Reassured as a member of, or subscriber to,
any association of insurers or reinsurers formed for the
purpose of covering nuclear energy risks or as a direct or
indirect reinsurer of any such member, subscriber or
association.
(2) Without in any way restricting the operation of paragraph
(1) of this Clause it is understood and agreed that for all
purposes of this reinsurance all original Boiler and
Machinery Insurance or Reinsurance contracts of the
Reassured shall be deemed to include the following
provisions of this paragraph;
This Policy does not apply to "loss," whether it be direct
or indirect, proximate or remote
(a) from an Accident caused directly or indirectly by
nuclear reaction, nuclear radiation or radioactive
contamination, all whether controlled or uncontrolled;
or
(b) from nuclear reaction, nuclear radiation or radioactive
contamination, all whether controlled or uncontrolled,
caused directly or indirectly by, contributed to or
aggravated by an Accident.
(3) However, it is agreed that loss arising out of the use of
Radioactive Isotopes in any form is not hereby excluded from
reinsurance protection.
(4) Without in any way restricting the operation of paragraph (1)
hereof, it is understood and agreed that
(a) all policies issued by the Reassured effective on or
before 30th April, 1958, shall be free from the
application of the other provisions of this Clause until
expiry date or 30th April, 1961, whichever first occurs,
whereupon all the provisions of this Clause shall apply,
(b) with respect to any risk located in Canada policies
issued by the Reassured effective on or before 30th June,
1958, shall be free from the application of the other
provisions of this Clause until expiry date of 30th June,
1961, whichever first occurs, whereupon all the
provisions of this Clause shall apply.
January 1, 1990
INSOLVENCY CLAUSE
-----------------
In the event of the insolvency of the Company, reinsurance under
this Agreement shall be payable by the Reinsurer on the basis of
the liability of the Company under Policy or Policies reinsured
without diminution because of the insolvency of the Company to
the Company or to its liquidator, receiver, or statutory
successor, except as provided by Section 4118(a) of the New York
Insurance Law or except where the Agreement specifically provides
another payee of such reinsurance in the event of the insolvency
of the Company, and where the Reinsurer with the consent of the
direct insured or insureds has assumed such Policy obligations of
the Company as direct obligations of the Reinsurer to the payees
under such Policies and in substitution for the obligations of
the Company to such payees.
It is agreed, however, that the liquidator or receiver or
statutory successor of the insolvent Company shall give written
notice to the Reinsurer of the pendency of a claim against the
insolvent Company on the Policy or Policies reinsured within a
reasonable time after such claim is filed in the insolvency
proceeding and that during the pendency of such claim the
Reinsurer may investigate such claim and interpose, at its own
expense, in the proceeding where such claim is to be adjudicated,
any defense or defenses which it may deem available to the
Company or its liquidator or receiver or statutory successor.
The expense thus incurred by the Reinsurer shall be chargeable,
subject to court approval, against the insolvent Company as part
of the expense of liquidation to the extent of a proportionate
share of the benefit which may accrue to the Company solely as a
result of the defense undertaken by the Reinsurer.
Where two or more Reinsurers are involved in the same claim and a
majority in interest elect to interpose defense to such claim the
expense shall be apportioned in accordance with the terms of this
Agreement as though such expense had been incurred by the
insolvent Company.
Should the Company go into liquidation or should a receiver be
appointed the Reinsurer shall be entitled to deduct from any sums
which may be due or may become due to the Company under this
Reinsurance Agreement, any sums which are due to the Reinsurer by
the Company under this Reinsurance Agreement and which are
payable at a fixed or stated date, as well as any other sums due
the Reinsurer which are permitted to be offset under applicable
law.
Note: Wherever used herein the terms:
"Company" shall be understood to mean "Company," "Reinsured,"
"Reassured" or whatever other term is used in the attached
reinsurance agreement to designate the reinsured company.
"Agreement" shall be understood to mean "Contract",
"Agreement", "Policy" or whatever other term is used to
designate the attached reinsurance document.
Arbitration Clause
------------------
As a condition precedent to any right of action hereunder, any
irreconcilable dispute between the parties to this Agreement will
be submitted for decision to a board of arbitration composed of
two arbitrators and an umpire.
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.
The members of the board of arbitration shall be active or
retired disinterested officials of insurance or reinsurance
companies, or Underwriters at Lloyd's, London, not under the
control or management of either party to this Agreement. Each
party shall appoint its arbitrator and the two arbitrators shall
choose an umpire before instituting the hearing. If the
respondent fails to appoint its arbitrator within four weeks
after being requested to do so by the claimant, the latter shall
also appoint the second arbitrator. If the two arbitrators fail
to agree upon the appointment of an umpire within four weeks
after their nominations, each of them shall name three, of whom
the other shall decline two, and the decision shall be made by
drawing lots.
The claimant shall submit its initial brief within 45 days from
appointment of the umpire. The respondent shall submit its brief
within 45 days thereafter and the claimant may submit a reply
brief within 30 days after filing of the resdondent's brief.
The board shall make its decision with record to the custom and
usage of the insurance and reinsurance business. The board shall
issue its decision in writing based upon a hearing in which
evidence may be introduced without following strict rules of
evidence but in which cross-examination and rebuttal shall be
allowed. The board shall make its decision within 60 days
following the termination of the hearings unless the parties
consent to an extension. The majority decision of the board
shall be final and binding upon all parties to the proceeding.
Judgment may be entered upon the award of the board in any court
having jurisdiction.
If more than one reinsurer is involved in the same dispute, all
such reinsurers shall constitute and act as one party for
purposes of this clause, and communications shall be made by the
Company to each of the reinsurers constituting the one party,
provided, however, that nothing therein 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 Agreement from several to
joint. If more than one reinsurer is involved in the arbitration
as respondent, the time for appointing the arbitrators will be
extended to six weeks.
Each party shall bear the expense of its own arbitrator and shall
jointly and equally bear with the other party the expense of the
umpire. The remaining costs of the arbitration proceedings shall
be allocated by the board.
Note: Wherever used herein, the term "Company" shall be
understood to mean "Reinsured", "Reassured" or whatever
other term is used in the attached Agreement to designate
the reinsured company. The term "Agreement" shall be
understood to mean "Contract", "Policy" or whatever other
term is used to designate the attached reinsurance
document.
