Hull Coverage. 1 11.1.3 War Hull and Liability Coverage.............. 1 11.2 Application of Proceeds of Hull Insurance............. 1 11.2.1 Event of Loss................................ 1 11.2.2 Damage....................................... 1 11.3
Hull Coverage. Worldwide (subject to standard insurance market geographical limits) all-risk ground and flight aircraft hull insurance covering the Aircraft, and all-risk spares insurance covering Engines and Parts while temporarily removed from the Aircraft (including while in transit) (1) for an agreed value not less than the Stipulated Loss Value in respect of all-risk hull insurance, (2) for the full replacement value, in respect of all-risk spares insurance, (3) of the type and covering the same risks usually carried by first class United States air carriers operating similar aircraft and engines on similar routes with respect to such aircraft operating on such routes, (4) confirming that the insurers shall not be entitled to replace the Aircraft or Airframe upon the occurrence of an insured Event of Loss with respect thereto, (5) with insurers and reinsurers of recognized reputation, responsibility and substantial financial capacity reasonably acceptable to Lessor and (6) that names Lessor or the Security Agent, as designated from time to time by Lessor, as the sole loss payee for all amounts up to the Stipulated Loss Value, names each Insured Party as an additional insured, provides that claims shall be adjusted and/or settled only with the consent of Lessor (and the Security Agent if one is then designated) and otherwise complies with the requirements set forth in, and is consistent with the issuance of a valid Certificate of Insurance in the form of Exhibit B hereto. Frontier Lease Agreement (MSN 28662) Execution Copy -49-
Hull Coverage. Worldwide (subject to standard insurance market geographical limits) all-risk ground and flight aircraft hull insurance covering the Aircraft, and all-risk spares insurance covering Engines and Parts while temporarily removed from the Aircraft (including while in transit) (1) for an agreed value not less than the Stipulated Loss Value in respect of all-risk hull insurance, (2) for the full replacement value, in respect of all-risk spares insurance, (3) of the type and covering the same risks usually carried by first class United States air carriers operating similar aircraft and engines on similar routes with respect to such aircraft operating on such routes, (4) confirming that the insurers shall not be entitled to replace the Aircraft or Airframe upon the occurrence of an insured Event of Loss with respect thereto, (5) with insurers of recognized reputation, responsibility and substantial financial capacity reasonably acceptable to Lessor and (6) that names Lessor or the Security Agent, as designated from time to time by Lessor, as the sole loss payee for all amounts up to the Stipulated Loss Value, names each Insured Party as an additional insured, provides that claims shall be adjusted and/or settled only with the consent of Lessor (and the Security Agent if one is then designated) and otherwise complies with the requirements set forth in, and is consistent with the issuance of a valid Certificate of Insurance in the form of Exhibit B.
