Common use of Insurance Premium Benchmarking Clause in Contracts

Insurance Premium Benchmarking. Subject to Section 16.1.2.13 of the Agreement, this Section allocates the risk between the Department and Developer of significant increases in insurance premiums for Insurance Policies required during the period after Final Acceptance through an insurance benchmarking process. The benchmarking process will occur at each annual insurance renewal period according to the following provisions. 2.1 Increases in insurance premiums attributable to any of the following factors (“Excluded Premium Increases”) shall not be considered in determining and comparing insurance premiums under the benchmarking process described in this Section 2.1: (a) Additional or extended coverages beyond those required under this Appendix 9; (b) Deductibles less than the maximum deductibles set forth in this Appendix 9; or (c) Other variations from the requirements for Insurance Policies under Section 16.1 of the Agreement and this Appendix 9. 2.2 Not later than 60 days after the end of each the first three full annual insurance periods after Final Acceptance, Developer shall submit a report (“Insurance Review Report”) to the Department that includes the following elements: (a) The written binders of insurance in the form and content required under clause 1 of Section 16.1.2.4.1 of the Agreement for the actual Insurance Policies required under Section 16.1 of the Agreement and this Appendix 9 for the subject annual insurance period (“Actual Benchmark Insurance Policies”); (b) The premium invoices for the Actual Benchmark Insurance Policies; (c) If any of the Actual Benchmark Insurance Policies varies from the requirements under Section 16.1 of the Agreement and this Appendix 9, a comprehensive written analysis and explanation by Developer’s independent insurance broker setting forth (i) the effect (if any) that factors described in Sections 2.1(a) through (c) above have had on the premiums, (ii) the Excluded Premium Increases, if any, and (iii) the increase, if any, in the insurance premiums that would have occurred absent the factors described in Sections 2.1(a) through (c); and

Insurance Premium Benchmarking. Subject to Section 16.1.2.13 of the Agreement, this Section allocates the risk between the Department and Developer of significant increases in insurance premiums for Insurance Policies required during the period after Final Acceptance through an insurance benchmarking process. The benchmarking process will occur at each annual insurance renewal period according to the following provisions. 2.1 Increases in insurance premiums attributable to any of the following factors (“Excluded Premium Increases”) shall not be considered in determining and comparing insurance premiums under the benchmarking process described in this Section 2.12: (a) Additional or extended coverages beyond those required under this Appendix 9; (b) Deductibles less than the maximum deductibles set forth in this Appendix 9; or (c) Other variations from the requirements for Insurance Policies under Section 16.1 of the Agreement and this Appendix 9. 2.2 Not later than 60 days after the end of each the first three full annual insurance periods after Final Acceptance, Developer shall submit a report (“Insurance Review Report”) to the Department that includes the following elements: (a) The written binders of insurance in the form and content required under clause 1 of Section 16.1.2.4.1 of the Agreement for the actual Insurance Policies required under Section 16.1 of the Agreement and this Appendix 9 for the subject annual insurance period (“Actual Benchmark Insurance Policies”); (b) The premium invoices for the Actual Benchmark Insurance Policies; (c) If any of the Actual Benchmark Insurance Policies varies from the requirements under Section 16.1 of the Agreement and this Appendix 9, a comprehensive written analysis and explanation by DeveloperXxxxxxxxx’s independent insurance broker setting forth (i) the effect (if any) that factors described in Sections 2.1(a) through (c) above have had on the premiums, (ii) the Excluded Premium Increases, if any, and (iii) the increase, if any, in the insurance premiums that would have occurred absent the factors described in Sections 2.1(a) through (c)) above; and

Insurance Premium Benchmarking. Subject to Section 16.1.2.13 of the Agreement, this Section allocates the risk between the Department and Developer of significant increases in insurance premiums for Insurance Policies required during the period after Final Acceptance through an insurance benchmarking process. The benchmarking process will occur at each annual insurance renewal period according to the following provisions. 2.1 Increases in insurance premiums attributable to any of the following factors (“Excluded Premium Increases”) shall not be considered in determining and comparing insurance premiums under the benchmarking process described in this Section 2.12: (a) Additional or extended coverages beyond those required under this Appendix 9; (b) Deductibles less than the maximum deductibles set forth in this Appendix 9; or (c) Other variations from the requirements for Insurance Policies under Section 16.1 of the Agreement and this Appendix 9. 2.2 Not later than 60 days after the end of each the first three full annual insurance periods after Final Acceptance, Developer shall submit a report (“Insurance Review Report”) to the Department that includes the following elements: (a) The written binders of insurance in the form and content required under clause 1 of Section 16.1.2.4.1 of the Agreement for the actual Insurance Policies required under Section 16.1 of the Agreement and this Appendix 9 for the subject annual insurance period (“Actual Benchmark Insurance Policies”); (b) The premium invoices for the Actual Benchmark Insurance Policies; (c) If any of the Actual Benchmark Insurance Policies varies from the requirements under Section 16.1 of the Agreement and this Appendix 9, a comprehensive written analysis and explanation by Developer’s independent insurance broker setting forth (i) the effect (if any) that factors described in Sections 2.1(a) through (c) above have had on the premiums, (ii) the Excluded Premium Increases, if any, and (iii) the increase, if any, in the insurance premiums that would have occurred absent the factors described in Sections 2.1(a) through (c)) above; and

Insurance Premium Benchmarking. Subject to This Section 16.1.2.13 of the Agreement, this Section 17.1.9 allocates the risk between the Department IFA and Developer of significant increases in insurance premiums for Insurance Policies required during the period after commencing upon the Final Acceptance Date and ending at the end of the Term through an insurance benchmarking process. The benchmarking process will occur at each annual insurance renewal period according to the following provisions. 2.1 17.1.9.1 Increases in insurance premiums attributable to any of the following factors (“Excluded Premium Increases”) shall not be considered in determining and comparing insurance premiums under the benchmarking process described in this Section 2.117.1.9: (a) a. Additional or extended coverages beyond those required under this Appendix 9Article 17 and Exhibit 19; (b) b. Deductibles less than the maximum deductibles set forth in this Appendix 9Article 17 and Exhibit 19; or c. Premium increases due to poor loss experience, defined as a loss ratio greater than 50%. The loss ratio will be based on three completed years of data plus partial data from the most recent policy year (conce available) and shall be calculated 90 days before the policy anniversary date. The formula shall include paid and reserved claims valued 120 days before the policy anniversary date in excess of any deductible or SIR divided by the appropriate premium for the same time period. Before the third year, all available data shall be used. Premiums shall not include any broker’s fees and agent’s commission. For purposes of this Section 17.1.9, “broker’s fees and agent’s commissions” means any fees paid to the broker by Developer, any commissions received and any indirect, incentive, or contingent commissions or other amounts received in relation to policies placed or services provided by the broker. d. Other variations from the requirements for Insurance Policies under Section 16.1 of the Agreement this Article 17 and this Appendix 9Exhibit 19. 2.2 17.1.9.2 Not later than 60 days after the end of each the first three full annual insurance periods after the Final AcceptanceAcceptance Date, Developer shall submit a report (“Insurance Review Report”) to the Department IFA that includes the following elements: (a) a. The written binders of insurance in the form and content required under clause 1 of Section 16.1.2.4.1 of the Agreement this Article 17 and Exhibit 19 for the actual Insurance Policies required under Section 16.1 of the Agreement hereunder and this Appendix 9 thereunder for the subject annual insurance period (“Actual Benchmark Insurance Policies”); (b) b. The premium invoices for the Actual Benchmark Insurance Policies; (c) c. If any of the Actual Benchmark Insurance Policies varies from the requirements under Section 16.1 of the Agreement and this Appendix 9Article 17 or Exhibit 19, then a comprehensive written analysis and explanation by Developer’s independent insurance broker setting forth (i) the effect (if any) that factors described in Sections 2.1(aSection 17.1.9.1(a) through (cd) above have had on the premiums, (ii) the Excluded Premium Increases, if any, and (iii) the increase, if any, in the insurance premiums that would have occurred absent the factors described in Sections 2.1(aSection 17.1.9.1(a) through (cd); and d. Detailed calculations of the final amount of the insurance premiums for the Actual Benchmark Insurance Policies, adjusted for surcharges, refunds, Excluded Premium Increases, and increases due to the factors described in Section 17.1.9.1(a) through (d). 17.1.9.3 At 60 days prior to each annual insurance period thereafter, Developer shall submit an Insurance Review Report to the Department that includes the following elements: a. Firm quotes from established and recognized insurance providers for the Insurance Policies required under this Article 17 and Exhibit 19 for the upcoming annual insurance period, without any variation from such requirements (“Required Minimum Insurance Policies”). The quotes shall represent the current and fair market cost of providing the Required Minimum Insurance Policies; and b. No less than every three years, Developer shall obtain firm quotes from three or more established and recognized insurance providers for the Insurance Policies required under this Article 17 and Exhibit 19 for the upcoming annual insurance period, without any variation from such requirements. The quotes shall represent the current and fair market cost of providing the Required Minimum Insurance Policies; and c. A comprehensive written analysis and explanation by Developer’s independent insurance broker setting forth (i) industry trends in premiums for the Required Minimum Insurance Policies, (ii) any claims (paid or reserved) since the last review period, with claim date(s), description of incident(s), claims amount(s), and the level of deductibles provided,

Insurance Premium Benchmarking. Subject to This Section 16.1.2.13 of the Agreement, this Section 17.1.9 allocates the risk between the Department IFA and Developer of significant increases in insurance premiums for Insurance Policies required during the period after Final Acceptance commencing upon the Substantial Completion Date and ending at the end of the Term through an insurance benchmarking process. The benchmarking process will occur at each certain annual insurance renewal period periods according to the following provisions. 2.1 17.1.9.1 Increases in insurance premiums attributable to any of the following factors (such premium increases, the “Excluded Premium Increases”) shall not be considered in determining and comparing insurance premiums under the benchmarking process described in this Section 2.117.1.9: (a) a. Additional or extended coverages beyond those required under this Appendix 9Article 17 and Exhibit 18, unless requested by IFA in advance, in writing; (b) b. Deductibles less than the maximum deductibles set forth in this Appendix 9Article 17 and Exhibit 18, unless requested by IFA in advance, in writing; c. That portion of any premium increase that constitutes any fee paid to a broker; orand (c) d. Other variations from the requirements for Insurance Policies under Section 16.1 of the Agreement this Article 17 and this Appendix 9Exhibit 18, unless requested by IFA in advance, in writing. 2.2 17.1.9.2 Not later than 60 days after the end of each of the first three (3) full annual insurance periods after Final Acceptancethe Substantial Completion Date for the Term, Developer shall submit a report (“Insurance Review Report”) to the Department IFA that includes the following elements: (a) a. The written binders of insurance in the form and content required under clause 1 of Section 16.1.2.4.1 of the Agreement this Article 17 and Exhibit 18 for the actual Insurance Policies required under Section 16.1 of hereunder and thereunder, or the Agreement actual Insurance Policies themselves, in either case unless previously submitted to IFA, and this Appendix 9 in each case, for the subject annual insurance period (“Actual Benchmark Insurance Policies”); (b) b. The premium invoices for the Actual Benchmark Insurance Policies; (c) c. If any of the Actual Benchmark Insurance Policies varies from the requirements under Section 16.1 of the Agreement and this Appendix 9Article 17 or Exhibit 18, then a comprehensive written analysis and explanation by Developer’s independent licensed insurance broker setting forth (i) the effect (if any) that factors described in Sections 2.1(aSection 17.1.9.1(a) through (cd) above have had on the premiums, (ii) the Excluded Premium Increases, if any, and (iii) the increase, if any, in the insurance premiums that would have occurred absent the factors described in Sections 2.1(aSection 17.1.9.1(a) through (cd); and d. Detailed calculations of the final amount of the insurance premiums for the Actual Benchmark Insurance Policies, adjusted for surcharges, refunds, Excluded Premium Increases, and other increases due to the factors described in Section 17.1.9.1(a) through (d). 17.1.9.3 [reserved] 17.1.9.4 Thereafter, Developer shall place actual Insurance Policies required under Article 17 and Exhibit 18 for the subject insurance period (the “Actual Insurance Policies”). Developer shall maintain copies of the Actual Insurance Policies and the Insurance Review Reports and making these documents available upon request of IFA or its designee for the entire Term plus ten (10) years.