Common use of Insurance Plan Clause in Contracts

Insurance Plan. Clause 24.1. During the whole validity period of this concession, the Concessionaire shall have, with an insurance company of a size consistent with the capital to be insured, registered with the sector regulatory bodies, the following insurance policies required for ensuring the effective and comprehensive coverage of risks inherent in the development of all activities stated in this Agreement: I – “all risks” type insurance for material damages, covering the loss, destruction or damages to any or all concession-related assets, and this insurance shall include all coverage required in accordance with international standards; II – insurance to preserve the economic conditions for the ongoing exploitation of services, by covering at least the operating costs against any changes in the Concessionaire’s revenues arising from claims or changes in the Agreement exploitation conditions which are not covered by insurance against material damages, provided that the adoption of this type of insurance be accepted by Brazilian legislation and expressly authorized by the Brazilian reinsurance authority, the Instituto de Resseguros do Brasil – IRB, or a similar body; and III – surety bonds ensuring the compliance with obligations related to the quality and universalization set forth in this Agreement (Performance Bond, credit letter and amount pledged as guarantee) in the amount corresponding to ten percent (10%) of the investments estimated at each year for compliance with the targets set forth herein.