Common use of War Risk, Hijacking and Related Perils Liability Insurance Clause in Contracts

War Risk, Hijacking and Related Perils Liability Insurance. If the Aircraft, the Airframe or any Engine is being operated in any war zone or area of recognized or, in Company’s judgment, threatened hostilities, then Company shall maintain or cause to be maintained war risk, hijacking and related perils liability insurance (x) in an amount that is not less than the aircraft liability insurance applicable to similar aircraft and engines in Company’s fleet on which Company carries insurance and operated by Company (or if a Lease is then in effect, in the Permitted Lessee’s fleet on which such Permitted Lessee carries insurance and operated by such Permitted Lessee) on the same or similar routes as the Aircraft, the Airframe or such Engine; provided that such liability insurance shall not be less than the Minimum Insurance Amount, (y) that is maintained in effect with insurers of recognized responsibility, and (z) which shall cover the perils set forth in the insurance policies maintained in connection with the CRAF Program (as such insurance policies maintained in connection with the CRAF Program may be amended from time to time). Except with respect to any war risk, hijacking or related perils liability insurance maintained on any aircraft owned or operated by Company in connection with the CRAF Program, if war risk, hijacking or related perils liability insurance is maintained by Company (or if a Lease is then in effect, by the Permitted Lessee) with respect to any aircraft owned or operated by Company (or such Permitted Lessee, as the case may be) of the same or similar type operated by Company (or such Permitted Lessee, as the case may be) on the same or similar routes as operated by the Aircraft, the Airframe or such Engine, then Company shall maintain or cause to be maintained with respect to the Aircraft war risk, hijacking and related perils liability insurance in scope and coverage no less comprehensive, in an amount not less than the insurance maintained by Company (or such Permitted Lessee, as the case may be) with respect to such other aircraft, and with insurers of recognized responsibility. Any policies of insurance carried in accordance with this Section 7.06(b) and any policies taken out in substitution or replacement for any of such policies shall: (1) name Loan Trustee, Subordination Agent, each Pass Through Trustee and each Liquidity Provider as their Interests may appear, as Additional Insureds, (2) subject to the conditions of clause (3) below (other than the exception set forth therein), provide that, in respect of the interest of each Additional Insured in such policies, the insurance shall not be invalidated by any action or inaction of Company, any Permitted Lessee, or any other insured (other than such Additional Insured) and shall insure each Additional Insured’s Interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by Company, any Permitted Lessee, or any other insured (other than such Additional Insured), (3) provide that, except to the extent not provided for by Company’s war risk and allied perils insurance provider, if such insurance is canceled for any reason, or if any change is made in the insurance that materially reduces the amount of insurance or the coverage certified in the insurance report delivered on or prior to the Closing Date to Loan Trustee and each Liquidity Provider or, if such insurance is canceled for nonpayment of premium, such cancellation or change shall not be effective as to any Additional Insured for seven days (or such other period as is then generally available in the industry) after receipt by such Additional Insured of written notice from such insurers of such cancellation or change, (4) provide that the Additional Insureds shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (5) provide that the insurers shall waive any rights of (x) set-off, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Additional Insureds to the extent of any moneys due to the Additional Insureds and (y) subrogation against the Additional Insureds to the extent that Company has waived its rights by its agreements to indemnify the Additional Insureds pursuant to the Operative Documents, (6) be primary without right of contribution from any other insurance carried by any Additional Insured with respect to its Interests as such in the Aircraft and (7) expressly provide that all of the provisions thereof, except the limits of liability, shall operate in the same manner as if there were a separate policy covering each insured. To the extent that Company’s war risk and allied perils insurance provider does not provide for provision of direct notice to Additional Insureds of cancellation or change in the insurance required hereunder, Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give the Additional Insureds immediate notice of each cancellation or change to such insurance.

War Risk, Hijacking and Related Perils Liability Insurance. If the Aircraft, the Airframe or any Engine is being operated in any war zone or area of recognized or, in Company’s judgment, threatened hostilities, then Company shall maintain or cause to be maintained war risk, hijacking and related perils liability insurance (x) in an amount that is not less than the aircraft liability insurance applicable to similar aircraft and engines in Company’s fleet on which Company carries insurance and operated by Company (or if a Lease is then in effect, in the Permitted Lessee’s fleet on which such Permitted Lessee carries insurance and operated by such Permitted Lessee) on the same or similar routes as the Aircraft, the Airframe or such Engine; provided that such liability insurance shall not be less than the Minimum Insurance Amount, (y) that is maintained in effect with insurers of recognized responsibility, and (z) which shall cover the perils set forth in the insurance policies maintained in connection with the CRAF Program (as such insurance policies maintained in connection with the CRAF Program may be amended from time to time). Except with respect to any war war-risk, hijacking or related perils liability insurance maintained on any aircraft owned or operated by Company in connection with the CRAF Program, if war war-risk, hijacking or related perils liability insurance is maintained by Company (or if a Lease is then in effect, by the Permitted Lessee) with respect to any aircraft owned or operated by Company (or such Permitted Lessee, as the case may be) of the same or similar type operated by Company (or such Permitted Lessee, as the case may be) on the same or similar routes as operated by the Aircraft, the Airframe or such Engine, then Company shall maintain or cause to be maintained with respect to the Aircraft war war-risk, hijacking and related perils liability insurance in scope and coverage no less comprehensive, in an amount not less than the insurance maintained by Company (or such Permitted Lessee, as the case may be) with respect to such other aircraft, and with insurers of recognized responsibility. Any policies of insurance carried in accordance with this Section 7.06(b) and any policies taken out in substitution or replacement for any of such policies shall: (1) name Loan Trustee, Subordination Agent, each Pass Through Trustee and each Liquidity Provider as their Interests may appear, as Additional Insureds, (2) subject to the conditions of clause (3) below (other than the exception set forth therein), provide that, in respect of the interest of each Additional Insured in such policies, the insurance shall not be invalidated by any action or inaction of Company, any Permitted Lessee, Company or any other insured Person (other than such Additional Insured) and shall insure each Additional Insured’s Interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by Company, any Permitted Lessee, Company or any other insured Person (other than such Additional Insured), (3) provide that, except to the extent not provided for by Company’s war risk and allied perils insurance provider, if such insurance is canceled for any reason, or if any change is made in the insurance that materially reduces the amount of insurance or the coverage certified in the insurance report delivered on or prior to the Closing Effective Date to Loan Trustee and each Liquidity Provider Providers or, if such insurance is canceled allowed to lapse for nonpayment of premium, such cancellation cancellation, change or change lapse shall not be effective as to any Additional Insured for seven days (or such other period as is then generally available in the industry) after receipt by such Additional Insured of written notice from such insurers of such cancellation cancellation, change or changelapse, (4) provide that the Additional Insureds shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (5) provide that the insurers shall waive any rights of (x) set-off, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Additional Insureds to the extent of any moneys due to the Additional Insureds and (y) subrogation against the Additional Insureds to the extent that Company has waived its rights by its agreements to indemnify the Additional Insureds pursuant to the Operative Documents, (6) be primary without right of contribution from any other insurance carried by any Additional Insured with respect to its Interests as such in the Aircraft and (7) expressly provide that all of the provisions thereof, except the limits of liability, shall operate in the same manner as if there were a separate policy covering each insured. To the extent that Company’s war war-risk and allied perils insurance provider does not provide for provision of direct notice to Additional Insureds of cancellation cancellation, change or change lapse in the insurance required hereunder, Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give the Additional Insureds immediate notice of each cancellation or lapse of, or change to to, such insurance.

War Risk, Hijacking and Related Perils Liability Insurance. If the Aircraft, the Airframe or any Engine is being operated in any war zone or area of recognized or, in Company’s judgment, threatened hostilities, then Company Debtors shall maintain or cause to be maintained war riskmaintained, hijacking through the FAA program or through brokers and related perils liability insurance (x) in an amount that is not less than the aircraft liability insurance applicable to similar aircraft and engines in Company’s fleet on which Company carries insurance and operated by Company (or if a Lease is then in effect, in the Permitted Lessee’s fleet on which such Permitted Lessee carries insurance and operated by such Permitted Lessee) on the same or similar routes as the Aircraft, the Airframe or such Engine; provided that such liability insurance shall not be less than the Minimum Insurance Amount, (y) that is maintained in effect with insurers of internationally recognized responsibility, and (z) which shall cover the perils set forth responsibility who normally participate in aviation insurances in the leading international insurance policies maintained in connection with the CRAF Program (as such insurance policies maintained in connection with the CRAF Program may be amended from time to time). Except with respect to any war riskmarkets, hijacking or related perils liability insurance maintained on any aircraft owned or operated by Company in connection with the CRAF Program, if war risk, hijacking or related perils liability insurance is maintained by Company (or if a Lease is then in effect, by the Permitted Lessee) with respect to any aircraft owned or operated by Company (or such Permitted Lessee, as the case may be) of the same or similar type operated by Company (or such Permitted Lessee, as the case may be) on the same or similar routes as operated by the Aircraft, the Airframe or such Engine, then Company shall maintain or cause to be maintained with respect to the Aircraft war risk, hijacking and related perils liability insurance in scope and coverage no less comprehensive, in an amount that is not less than the insurance maintained by Company (or such Permitted Lessee, as the case may be) with respect to such other aircraft, and with insurers of recognized responsibility$500,000,000. Any policies of insurance carried in accordance with this Section 7.06(b2.08(b) and any policies taken out in substitution or replacement for any of such policies shall: (1) name Loan Trustee, Subordination Collateral Agent, each Pass Through Trustee Lenders (as a group) and each Liquidity Provider as of their Interests may appearrespective successors, assigns, subsidiaries, directors, officers, members, partners, employees and affiliates as Additional InsuredsInsureds (provided, however, such status shall not apply to an Additional Insured for its respective liability as a manufacturer, maintenance provider or supplier of or to the Aircraft Collateral), (2) subject to the conditions of clause (3) below (other than the exception set forth therein), provide that, in respect of the interest of each Additional Insured in such policies, the insurance shall not be invalidated by any action or inaction of Company, any Permitted Lessee, Debtors or any other insured Person (other than such Additional Insured) and shall insure each Additional Insured’s Interests interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by Company, any Permitted Lessee, Debtors or any other insured Person (other than such Additional Insured), (3) provide that, except subject to the extent not provided for by Company’s war risk and allied perils insurance providercustomary terms including in AVN67B or any successor thereto, if such insurance is canceled for any reason, or if any change is made in the insurance that materially reduces the amount of insurance or the coverage of the Additional Insureds certified in the most recent insurance report delivered on or prior to the Closing Date to Loan Trustee and each Liquidity Provider or, if such insurance is canceled allowed to lapse for nonpayment of premium, such cancellation cancellation, change or change lapse shall not be effective as to any Additional Insured for seven days (or such other period as is then generally available in the industry) after receipt issuance by such Additional Insured the respective broker of written notice from such insurers of such cancellation cancellation, change or changelapse, (4) provide that the Additional Insureds shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (5) provide that the insurers shall waive any rights of (x) set-off, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Additional Insureds to the extent of any moneys due to the Additional Insureds and (y) subrogation against the Additional Insureds to the extent that Company has waived its rights by its agreements to indemnify the Additional Insureds pursuant to the Operative DocumentsInsureds, (6) be primary without right of contribution from any other insurance carried by any Additional Insured with respect to its Interests interests as such in the Aircraft and (7) expressly provide that all of the provisions thereof, except the limits of liability, shall operate in the same manner as if there were a separate policy covering each insured. To the extent that Company’s war risk and allied perils insurance provider does not provide for provision of direct notice to Additional Insureds of cancellation or change in the insurance required hereunder, Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give the Additional Insureds immediate notice of each cancellation or change to such insurance.