WORKERS’ COMPENSATION CLASH EXCESS OF LOSS REINSURANCE CONTRACT No. 2000290 EFFECTIVE JANUARY 1, 2007 between PEERLESS INSURANCE COMPANY Keene, New Hampshire and The reinsurers subscribing to the respective Interests and Liabilities Agreements...
REINSURANCE CONTRACT
No. 2000290
Keene, New Hampshire
Interests and Liabilities Agreements attached to
and forming part of this Contract
Excess of Loss Contract — January 1, 2007
ARTICLE | CONTENTS | PAGE | ||||
I | BUSINESS COVERED
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1 | ||||
II | EFFECTIVE DATE AND TERMINATION
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3 | ||||
III | TERRITORY
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4 | ||||
IV | LIMIT AND RETENTION
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4 | ||||
V | WARRANTIES
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5 | ||||
VI | ULTIMATE NET LOSS
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5 | ||||
VII | LOSS IN EXCESS OF POLICY LIMITS
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6 | ||||
VIII | EXTRA CONTRACTUAL OBLIGATIONS
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6 | ||||
IX | EXCLUSIONS
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7 | ||||
X | SPECIAL ACCEPTANCES
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12 | ||||
XI | LOSS OCCURRENCE
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12 | ||||
XII | REINSURANCE PREMIUM
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14 | ||||
XIII | REPORTS AND REMITTANCES
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14 | ||||
XIV | LOSS ADJUSTMENTS AND SETTLEMENTS
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15 | ||||
XV | SALVAGE AND SUBROGATION
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15 | ||||
XVI | FEDERAL TERRORISM EXCESS RECOVERY CLAUSE
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16 | ||||
XVII | ACCESS TO RECORDS
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16 | ||||
XVIII | DIVIDENDS AND TAXES
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17 | ||||
XIX | FEDERAL EXCISE TAX
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17 | ||||
XX | GOVERNING LAW
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18 | ||||
XXI | CURRENCY
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18 | ||||
XXII | OFFSET
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18 | ||||
XXIII | ERRORS OR OMISSIONS
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18 | ||||
XXIV | INSOLVENCY
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18 | ||||
XXV | MEDIATION
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19 | ||||
XXVI | ARBITRATION
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20 | ||||
XXVII | SPECIAL CONDITIONS
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23 | ||||
XXVIII | COMMUTATION
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25 | ||||
XXIX | THIRD PARTIES
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26 | ||||
XXX | UNAUTHORIZED REINSURENCE
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26 | ||||
XXXI | SERVICE OF SUIT
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28 | ||||
XXXII | CONFIDENTIALITY CLAUSE
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28 | ||||
XXXIII | AMENDMENTS
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30 | ||||
XXXIV | SEVERABILITY
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30 | ||||
XXXV | INTEREST PENALTY
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30 | ||||
XXXVI | ASSIGNMENT
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31 | ||||
XXXVII | 31 |
APPENDIX A — DEFINITION OF PROFIT CENTER
APPENDIX B — PHARMACEUTICAL/MEDICAL RISKS
INSOLVENCY FUNDS EXCLUSION CLAUSE
NUCLEAR INCIDENT EXCLUSION CLAUSE — LIABILITY — REINSURANCE — U.S.A. N.M.A. 1590
NUCLEAR INCIDENT EXCLUSION CLAUSE — LIABILITY — REINSURANCE — CANADA. N.M.A. 1979
NUCLEAR INCIDENT EXCLUSION CLAUSE — REINSURANCE — NO. 4.
Excess of Loss Contract — January 1, 2007
REINSURANCE CONTRACT
No. 2000290
(hereinafter referred to as the “Contract”)
Interests and Liabilities Agreements attached to
and forming part of this Contract
(hereinafter referred to as the “Subscribing Reinsurer”)
A. | The Subscribing Reinsurer shall indemnify the Company on an excess of loss basis in respect of the Ultimate Net Loss paid or to be paid by the Company and the Legal Entities (as defined below) as a result of losses occurring or claims made during the term of the Contract for Policies in force as of January 1, 2007, and new and renewal Policies becoming effective on or after said date, subject to the terms and conditions contained herein. | |
C. | The term “Policies” shall mean each of the Company’s or a Legal Entity’s binders, policies and contracts of insurance or reinsurance on the business covered hereunder. | |
D. | Under this Contract, the indemnity for reinsured loss applies only to the following Annual Statement Lines of Business and Classes of Insurance written by the Company or ceded to the Company directly or indirectly by a legal entity listed below (each, a “Legal Entity” and, collectively, the “Legal Entities”) | |
American Ambassador Casualty Company, Lisle, Illinois America First Insurance Company, Keene, New Hampshire, America First Lloyd’s Insurance Company, Richardson, Texas, Colorado Casualty Insurance Company, Englewood, Colorado, Consolidated Insurance Company, Indianapolis, Indiana, Excelsior Insurance Company, Keene, New Hampshire, Globe American Casualty Company, Loveland, Ohio, Golden Eagle Insurance Corporation, San Diego, California, Hawkeye-Security Insurance Company, Waukesha, Wisconsin, Indiana Insurance Company, Indianapolis, Indiana, |
||
Liberty Mutual Mid-Atlantic Insurance Company, Camp Hill, Pennsylvania, for business written by the Liberty Mutual Agency Markets Profit Centers covered under this Contract as defined in Appendix A | ||
Liberty Northwest Insurance Corporation, Portland, Oregon, Mid-American Fire and Casualty Company, Loveland, Ohio, Xxxxxxxxxx Mutual Insurance Company, Columbia, Maryland, National Insurance Association, Xxxxxxxxxxxx, Xxxxxxx, |
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Oregon Automobile Insurance Company, Portland, Oregon,
Peerless Indemnity Insurance Company, Lisle, Illinois,
The Midwestern Indemnity Company, Loveland, Ohio,
The Netherlands Insurance Company, Keene, New Hampshire,
Wausau General Insurance Company, Wausau, Wisconsin, and
Wausau Underwriters Insurance Company, Wausau, Wisconsin, and
Wausau Business Insurance Company, Wausau, Wisconsin, for business classified as Business Solutions Group or Wausau Business Unit only,
Bridgefield Casualty Insurance Company, Lakeland, Florida
NAIC | ||
CODE: | LINES OF BUSINESS: | |
03
|
Farmowners (Section II only) | |
04
|
Homeowners (Section II only) | |
05.2
|
Commercial Multiple Peril (Section II only) | |
16
|
Workers Compensation | |
17
|
Other Liability, excluding Umbrella | |
18
|
Products Liability | |
19.1, 19.2
|
Private Passenger Automobile Liability | |
19.3, 19.4
|
Commercial Automobile Liability | |
21
|
Automobile Physical Damage (Auto Physical Damage Collision, only) |
1. | Automobile Liability includes; Bodily Injury Liability, Property Damage Liability, Medical Payments, Uninsured Motorists, Underinsured Motorists, No-Fault Coverage and Auto Physical Damage Collision. | ||
2. | Other Liability including Professional Liability, Bodily Injury Liability, Property Damage Liability, Personal and Advertising Injury Liability and Medical Payments Coverage when written as part of a Commercial or Personal Package Policy or on a monoline basis. However, Advertising Injury Liability shall only apply to this Agreement when written as part of a Commercial Package Policy or a Commercial General Liability Coverage Form. |
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3. | Workers Compensation and Employers Liability. | ||
4. | Clash of multiple Policies involved in the same occurrence. |
A. | This Contract shall become effective at 12:01 a.m., Local Standard Time, with respect to Policies in force at 12:01 a.m., Local Standard Time, January 1, 2007, and new and renewal Policies becoming effective on or after said date. Subject to Article XXVII — Special Conditions below, this Contract may be terminated at the close of any calendar year by either party giving to the other 90 days prior written notice by certified mail of its intention to do so. |
B. | This Contract shall apply to loss occurrence and claims made Policies in accordance with the following provisions: |
1. | As respects Policies written on an occurrence basis: | ||
This Contract shall apply with respect to losses occurring on or after the inception date of this Contract. | |||
2. | As respects Policies written on a claims made basis: | ||
“Claims Made” shall be understood to mean losses arising under Policies in which the date when the claim is made determines under which Policy the loss is collectible. Such losses are covered hereunder irrespective of the date on which the loss occurs provided that the date the claim is made falls within the period of this Contract. | |||
For the purposes of the foregoing, the date a claim is first made shall be the date applicable to the entire loss and the Subscribing Reinsurer shall be liable for its proportion of the entire loss irrespective of the expiry date of the Contract, provided that such date falls within the period of this Contract. | |||
In the event of a Loss Occurrence arising hereunder which involves Policies (or sections thereof) which respond on both a losses occurring and Claims Made basis, the date of the Loss Occurrence will be deemed to be the earlier of the dates, namely the date of the occurrence of the loss. |
C. | In the event of termination of this Contract, the Company shall have the option of continuing or terminating the liability in force at the date of termination as set forth below. The Company may exercise such option provided written notice of the Company’s election is given by certified mail to the Subscribing Reinsurer prior to the date of termination. If the Company does not choose to exercise its option prior to the date of termination, such option shall revert to the Subscribing Reinsurer. |
1.a. | As respects Policies written on an occurrence basis: | ||
Upon termination of this Contract, all Policies covered hereunder and in force at the date of termination of this Contract shall continue until their natural expiry, cancellation or next anniversary of such business, whichever first occurs; but in no case shall this reinsurance be extended for longer than one year, plus odd time not exceeding 18 months in all, after the termination date. | |||
1.b. | As respects Policies written on a claims made basis: | ||
Upon termination of this Contract, the Subscribing Reinsurer shall continue to be liable for claims received or recorded by the Company or by the insured with respect to Policies in force |
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at the date of termination for the full original policy period until the natural expiry, cancellation or next anniversary of such Policies, not to exceed one year, whichever comes first. However, if the Company or a Legal Entity, as applicable, has provided an Extended Reporting Period within one year after the date of termination on Policies in force at the date of termination or if the Extended Reporting Period is in force at the date of termination, the Subscribing Reinsurer shall continue to be liable for such extended reporting period. | |||
2.a. | As respects Policies written on an occurrence basis: | ||
Upon termination of this Contract, the Subscribing Reinsurer shall be liable for losses occurring prior to the date of termination; however, the Subscribing Reinsurer shall have no liability for losses occurring subsequent to the termination of this Contract. | |||
2.b. | As respects Policies written on a claims made basis: | ||
Upon termination of this Contract, the Subscribing Reinsurer shall not be liable for claims received or recorded by the Company or a Legal Entity, as applicable, or insured after the effective date of termination unless such claim is received and recorded by the Company or a Legal Entity, as applicable, or the insured during an Extended Reporting Endorsement Period in force at the date of termination. |
A. | The Company shall retain the first $5,000,000 of Ultimate Net Loss as respects any one Loss Occurrence. The Subscribing Reinsurer shall then be liable for the amount by which the Ultimate Net Loss exceeds the Company’s retention of $5,000,000 but the Subscribing Reinsurer shall never exceed $5,000,000 any one Loss Occurrence. |
B. | Notwithstanding any other provisions of this Contract, the Company shall retain all Ultimate Net Loss otherwise recoverable from the Subscribing Reinsurer under this Contract until the Company has retained Ultimate Net Loss otherwise recoverable from the Subscribing Reinsurer under this Contract equal to $5,000,000 for the current calendar year. |
C. | Notwithstanding the foregoing, the Subscribing Reinsurer’s liability arising out of an Act of Terrorism shall be limited to $5,000,000 in the aggregate. |
D. | The Company’s retention and the Subscribing Reinsurer’s limit of liability for each Loss Occurrence, shall apply irrespective of the number of Policies affected or number of hazards in one Policy and regardless of the number of Lines of Business involved. |
E. | An “Act of Terrorism” for purposes of this Contract shall mean: |
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1. | Any actual or threatened violent act or act harmful to human life, tangible or intangible property or infrastructure directed towards or having the effect of (a) intimidating, coercing or putting in fear a civilian population or section thereof for the purpose of establishing or advancing a specific ideological, religious or political system of thought, perpetrated by a specific individual or group directly or indirectly through agents acting on behalf of said individual or group or (c) retaliating against any country for direct or vicarious support by that country of any other government or political system. | ||
2. | Any act deemed or declared by the Federal Office of Homeland Security to be terrorism or a terrorist act shall also be considered an “Act of Terrorism” for purposes of this Contract. |
F. | Reinsurance of the Company’s retention, set forth in each Exhibit, shall not be deducted in arriving at the Ultimate Net Loss herein, |
1. | $5,000,000 each Life as respects for Workers’ Compensation business |
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A. | THE FOLLOWING GENERAL CATEGORIES |
1. | Loss or damage caused directly or indirectly by: (a) enemy attack by armed forces including action taken by military, naval or air forces in resisting an actual or an immediately impending enemy attack; (b) invasion; (c) insurrection; (d) rebellion; (e) revolution; (f) intervention; (g) civil war; and (h) usurped power. | ||
2. | Reinsurance assumed by the Company, except intercompany reinsurance. | ||
3. | Business derived from any Pool, Association, including Joint Underwriting Association, Syndicate, Exchange, Plan, Fund or other facility directly as a member, subscriber or participant, or indirectly by way of reinsurance or assessments; provided this exclusion shall not apply to Automobile liability or Workers Compensation assigned risks which may be currently or subsequently covered hereunder. | ||
4. | Pollution Liability, to the extent excluded in the original Policies and endorsements, except when a judicial entity invalidates the Policies’ exclusion or in any jurisdiction whose regulatory authorities have prohibited the exclusion. | ||
5. | Insolvency Funds as per the attached Insolvency Funds Exclusion Clause. | ||
6. | Pharmaceutical/Medical Risks per the attached Appendix B | ||
7 | Nuclear Incident Exclusion Clauses which are attached and made part of this Agreement: |
a. | Nuclear Incident Exclusion Clause — Liability- Reinsurance — U.S.A. N.M.A. 1590 | ||
b. | Nuclear Incident Exclusion Clause — Liability — Reinsurance — Canada N.M.A. 1979 | ||
c. | Nuclear Incident Exclusion Clause — Reinsurance — No. 4. |
8. | Personal or Commercial Umbrella risks. |
1. | Fiduciary Liability. | ||
2. | Surety and Credit insurance. | ||
3. | Fidelity Bonds. | ||
4. | Credit and Financial Guarantee. | ||
5. | Securities and Exchange Liability. |
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6. | Malpractice insurance, Directors and Officers Liability insurance or any form of Errors and Omissions or Professional Liability insurance, except as provided for under the Profit Centers’ Underwriting Guidelines | ||
7. | Advertisers’, Broadcasters’ and Telecasters’ Liability as respects Personal Injury Liability except as provided for under the Profit Centers’ Underwriting Guidelines. | ||
8. | Kidnap, Extortion and Xxxxxx Liability. | ||
9. | Protection and Indemnity (Ocean Marine) except for hulls under 50 feet. | ||
10. | Media business, defined as Feature Film and Major Motion Picture Studios, Commercial Negative Film Coverages, Cast Coverage, Completion Bond and Television Productions, with annual gross receipts greater than $25,000,000. | ||
11. | Asbestos liability to the extent excluded in the original Policies and endorsements except when a judicial entity invalidates the Policies’ exclusion or in any jurisdiction whose regulatory authorities have prohibited the exclusion. |
C. | THE FOLLOWING RISKS AS RESPECTS AUTOMOBILE LIABILITY AND AUTOMOBILE COLLISION |
1. | Autos as used in or being prepared for, any professional or organized racing or demolition contest or stunting activity except as provided for under Insurance Services Organization’s Business Auto and Garage Policy. | ||
2. | All vehicles classified as “Public Automobiles” except school buses, church buses, social service agency automobiles, van pools, vehicles used for the transportation of employees and courtesy vans and buses. | ||
3. | All rental operations. An exception for rental vehicles shall apply as respects auto dealerships when customer’s vehicle is being serviced. | ||
4. | Vehicles regularly used to haul property of others and operating beyond a 500 mile radius. | ||
5. | Newspaper delivery trucks except in non-metropolitan locations with a population of less than 50,000. | ||
6. | Vehicles engaged in the transportation or distribution of fireworks, fuses, explosives, ammunitions, natural or artificial fuel gas, or liquefied petroleum gases or gasoline, except when written as incidental coverage, as defined in the Profit Centers’ Underwriting Guidelines. This exclusion shall not apply to vehicles engaged in the transportation of natural or artificial fuel gas or liquefied petroleum gases or gasoline when operations are within a 500 mile radius. |
1. | Liability as respects Products and Completed Operations: |
a. | The manufacture, importation, labeling or re-labeling of: |
(i) | Drugs or Pharmaceuticals. | ||
(ii) | Cosmetics, defined as: |
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(1) | articles intended to be rubbed, poured, sprinkled or sprayed on, introduced into, or otherwise applied to the human body or any part thereof for cleansing, beautifying, promoting attractiveness, or altering the appearance, and | ||
(2) | articles intended for use as a component of any such article; except that such term shall not include soap, and | ||
(3) | and other cosmetic within the meaning of Section 201 (i) of the Federal Food, Drug and Cosmetic Act (21 U.S.C. 321 (i)). |
(iii) | Herbicides, insecticides or pesticides, except as respects risks involved in a farming operation. |
b. | The manufacture or importing of motorized or self-propelled vehicles and equipment. | ||
c. | The manufacture, sale, distribution, handling, servicing or maintenance of aircraft, aerospacecraft, missiles, satellites or any component or components thereof. |
2. | All railway operations except Railroad Protective Liability coverage as respects jobs which do not involve track work or service disruptions. | ||
3. | Amusement parks, carnivals or circuses, except county or country fairs, incidental family fun centers ice or roller skating rinks, miniature golf courses and excursions to camps or parks. | ||
4. | Public assembly exposure in excess of 5,000 except for schools and colleges. | ||
5. | Gas or electric companies. | ||
6. | Subaqueous operations. | ||
7. | Mining and quarrying operations, if blasting is involved | ||
8. | Demolition of buildings or structures in excess of three stories or 50 feet in height | ||
9. | Shoring, underpinning or moving of buildings or structures. | ||
10. | Manufacture, sale, rental, lease or repair of scaffolds. This exclusion shall not apply to incidental exposure on construction risks. | ||
11. | Construction of bridges unless the span is less than 75 feet between pillars, and tunnels or dams. | ||
12. | a. Manufacturers or importers of fireworks, fuses, or any substance, as defined and noted below, intended for use as an explosive. |
b. | Loading of fireworks, fuses, or any explosive substance defined below into containers for use as explosive objects, propellant charges or detonation devices and the storage thereof. | ||
c. | Manufacturers or importers of any product in which fireworks, fuses, or any explosive substance defined below is an ingredient. | ||
d. | Handling, storage, transportation or use of fireworks, fuses, or any explosive substance defined below. |
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13. | Manufacture, production, refining, storage, wholesale distribution or transportation of natural or artificial fuel gas, butane, propane or liquefied petroleum gases or gasoline, except when written as incidental coverage, as defined in the Profit Centers’ Underwriting Guidelines, or when operations are within a 500 mile radius. This exclusion is not to apply to the construction and maintenance of such exposures which shall include, but not be limited to, landscaping, road construction, excavation and water hauling, plumbing and electrical services. | ||
14. | Onshore and offshore gas and oil drilling operations. This exclusion is not to apply to the construction and maintenance of such exposures which shall include, but not be limited to, landscaping, road construction, plumbing and electrical services. | ||
15. | Ownership, maintenance, use or entrustment of any aircraft, owned, operated, rented or loaned including fueling, or any device or machine intended for and/or aiding in the achievement of atmospheric flight, projection or orbit, to the extent excluded in the original Policies and endorsements. | ||
16. | Municipalities except for those with a population less than 100,000. |
E. | THE FOLLOWING RISKS AS RESPECTS WORKERS COMPENSATION AND EMPLOYERS LIABILITY |
1. | For all Profit Centers other than Liberty Northwest Profit center, operations under the jurisdiction of the U.S. Longshoremen’s and Harbor Workers’ Act, the Xxxxx Act and the Maritime Employers Liability Act except when written as incidental coverages as defined in the Profit Centers’ Underwriting Guidelines | ||
2. | For the Liberty Northwest Profit Center, operations under the jurisdiction of the Xxxxx Act and the Maritime Employers Liability Act except when written as incidental coverages as defined in their Underwriting Guidelines. | ||
3. | Operation of docks or wharves, other than small marinas or pleasure docks. | ||
4. | The manufacturing, mining, refining, processing, distribution, installation, removal or encapsulment of asbestos. | ||
5. | Risks involving known exposure to asbestos. | ||
6. | All railway operations except sidetrack agreements. | ||
7. | Amusement parks, carnivals or circuses, except county or country fairs, incidental family fun centers, ice or roller skating rinks, miniature golf courses and excursions to camps or parks. | ||
8. | Subaqueous operations. | ||
9. | Mining and quarrying operations, if blasting is involved | ||
10. | Demolition of buildings or structures in excess of three stories or 50 feet in height. | ||
11. | Shoring, underpinning or moving of buildings or structures. | ||
12. | Manufacture, sale, rental, lease, erection or repair of scaffolds. This exclusion shall not apply to incidental exposure on construction risks. |
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13. | Construction of bridges unless the span is less than 75 feet between pillars, and tunnels or dams. | ||
14. | a. Manufacturers or importers of fireworks, fuses, or any substance, as defined and noted below, intended for use as an explosive. |
b. | Loading of fireworks, fuses, or any explosive substance defined below into containers for use as explosive objects, propellant charges or detonation devices and the storage thereof. | ||
c. | Manufacturers or importers of any product in which fireworks, fuses, or any explosive substance defined below is an ingredient. | ||
d. | Handling, storage, transportation or use of fireworks, fuses, or any explosive substance defined below. |
15. | Manufacture, production, refining, storage, wholesale distribution or transportation of natural or artificial fuel gas, butane, propane or liquefied petroleum gases or gasoline, except when written as incidental coverages as defined in the Profit Centers’ Underwriting Guidelines. This exclusion is not to apply to the construction and maintenance of such exposures which shall include, but not be limited to, landscaping, road construction, plumbing and electrical services. | ||
16. | Onshore and offshore gas and oil drilling operations. This exclusion is not to apply to the construction and maintenance of such exposures which shall include, but not be limited to, landscaping, road construction, plumbing and electrical services. | ||
17. | Ownership, maintenance or use or entrustment of any airport or aircraft, owned, operated, rented or loaned including fueling, or any device or machine intended for and/or aiding in the achievement of atmospheric flight, projection or orbit except as respects corporate owned aircraft up to six passengers. | ||
18. | Municipalities, except for those with a population less than 100,000. |
F. | THE FOLLOWING RISKS AS RESPECTS TERRORISM | |
Terrorism losses arising from Airports, Bridges, Government Buildings, Nuclear Facilities, Office Buildings over 25 stories, Security Services, Stadiums and Tunnels, Nuclear, Biological and Chemical exposures, Explosive Manufacturing risks, Fertilizer mixing plants, Railroads, Amusement/ | ||
Theme parks with greater than 5,000 person capacity, Distribution and manufacturing of weapons/munitions. | ||
G. | The Company and the Subscribing Reinsurer have agreed on the Profit Centers’ Underwriting Guidelines, as respects Policies; covered under this Agreement. The Company shall advise the Subscribing Reinsurer of any change in such Underwriting Guidelines. | |
H. | In the event the Company or a Legal Entity is inadvertently bound on any risk which is excluded under this Agreement, the reinsurance provided under this Agreement shall apply to such risk until discovery by the Company within its Home Office of the existence of such risk and for 45 days |
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A. | Risks which are beyond the terms, conditions or limitations of this Contract submitted to each Subscribing Reinsurer identified on the attached Interests and Liabilities Agreement for special acceptance hereunder. Upon receipt of approval from all Subscribing Reinsurers, such acceptance shall bind each Subscribing Reinsurer for its respective share in the interests and liabilities of said risk |
B. | When a risk is specially accepted, such risk shall be covered under the terms and conditions of this Contract, except as such terms shall be modified by such acceptance. Premiums and losses derived from any special acceptance shall be included with other data for rating purposes of this Contract. Once a risk has been accepted under the provisions of this Article, it will automatically be included at renewal unless there have been material changes to the risk, in which case the risk will be resubmitted. |
A. | As respects Products Bodily Injury and Products Property Damage Liability, injuries to all persons and all damage to property of others occurring during a Policy Period and proceeding from or traceable to the same cause or series of similar causes, shall be deemed to arise out of one Loss Occurrence, and the date of such Loss Occurrence shall be deemed to be the commencing date of the Policy Period. For the purpose of this provision, each annual period of a Policy which continues in force for more than one year shall be deemed to be a separate Policy Period. |
B. | As respects Bodily Injury Liability (other than Automobile and Products), said term shall also be understood to mean, as regards each original assured, injuries to one or more than one person resulting from infection, contagion, poisoning, or contamination proceeding from or traceable to the same cause or series of similar causes. |
C. | As respects Property Damage Liability (other than Automobile and Products), Loss Occurrence shall also, subject to provisions 1. and 2. below, be understood to mean loss or losses caused by a series of operations, events, or occurrences arising out of operations at one specific site and which cannot be attributed to any single one of such operations, events or occurrences, but rather to the cumulative effect of the same. In assessing each and every Loss Occurrence within the foregoing definition, it is understood and agreed that: |
1. | The series of operations, events or occurrences shall not extend over a period longer than 12 consecutive months; and |
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2. | The Company may elect the date on which the period of not exceeding 12 consecutive months shall be deemed to have commenced. |
In the event that the series of operations, events or occurrences extend over a period longer than 12 consecutive months, then each consecutive period of 12 months, the first of which commences on the date elected under 2. above, shall form the basis of claim under this Contract. | ||
D. | As respects those Policies which provide aggregate limits of liability, the total of all individual losses occurring during any one Policy year which proceed from or are traceable to the same cause or a series of similar causes. | |
E. | As respects an occupational or other disease or cumulative injury under Workers Compensation and Employers Liability, each case of an employee contracting any disease for which the Company or a Legal Entity may be liable shall be considered a separate and distinct occurrence and the date of each occurrence shall be deemed to be as follows: |
1. | If the case is compensable under the Workers Compensation Law or any Occupational Disease Compensation Act, the date of the beginning of the disability for which compensation is payable; | ||
2. | If the case is not compensable under the Workers Compensation Law or any Occupational Disease Compensation Act, the date of the disability due to said disease actually began; | ||
3. | Where claim is made after employment has ceased, then the date of the cessation of employment shall be deemed to be the date of disability; | ||
4. | Notwithstanding the foregoing, in the incidence of a sudden catastrophic event not exceeding 24 hours in duration including traumatic injury or death, all losses to all employers shall be deemed a Loss Occurrence. |
A. | The term “Loss Occurrence” shall mean each claim or series of claims made to the Company or a Legal Entity, or the insured, during the term of this Contract arising out of or following the same cause or series of similar causes. |
B. | As respects a Loss Occurrence involving one or more Policies written on a claims made basis, the date of Loss Occurrence for purposes of reinsurance, shall be considered the earliest date when notice of claims is first received and recorded by the Company or a Legal Entity or the insured, whichever comes first, and any related claims reported subsequent to such date shall be included in such loss. However, if notice of claims is first received and recorded by the Company or a Legal Entity or the insured during an Extended Reporting Period, the date of occurrence shall be deemed to be the last day of the policy period. |
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A. | The Company shall pay to the Subscribing Reinsurer a rate of .095% of the Subject Earned Premium for the Business Covered hereunder, as stated in Paragraph D. of Article I — Business Covered. | |
B. | The term “ Earned Premium” as used herein is equal to the sum of the Net Premiums Written on the business covered hereunder during the period under consideration, plus the unearned premium reserve as respects premiums in force at the beginning of such period, less the unearned premium reserve as respects premiums in force at the end of the period, said unearned premium is to be calculated on a monthly pro rata basis. | |
C. | The term “Net Premiums Written” shall mean gross premiums written less returns, allowances and reinsurances which inure to the benefit of the Subscribing Reinsurer. | |
D. | The term “Subject Earned Premium” shall mean the Earned Premium times the rates noted below. |
ASLOB | Percentage | |||
Homeowners |
0 | % | ||
Farmowners |
0 | % | ||
Commercial Multiple Peril (liability) |
0 | % | ||
Workers Compensation |
100 | % | ||
Other Liability, excluding Umbrella |
0 | % | ||
Products Liability |
0 | % | ||
Private Passenger & Commercial
Auto Liability |
0 | % | ||
Private Passenger & Commercial
Auto Physical Damage |
0 | % |
E. | Each claim reduces the amount of indemnity from the time the loss occurred by the sum paid. Any amount exhausted is reinstated form the time the Loss Occurrence begins. Reinstatement will be provided as follows: One at 25%, one at 50% and two at 100% of the original premium. The additional premium will be calculated pro rata of the annual premium, as to the fraction of the limit of liability reinstated and 100% as to the term. |
A. | The Company shall furnish the Subscribing Reinsurer with all necessary data respecting premiums and losses for as long as one of the parties hereto has a claim against the other arising from this Contract. | |
B. | Quarterly Deposit Premiums equal to 1/4 of the 100% of Annual Deposit Premium will be remitted on January 15, May 15, August 15 and November 15, according to the schedule below. The Company shall submit finalized accounts to the Subscribing Reinsurer on February 15, of the subsequent year, summarizing the actual subject earned premium for the previous Contract Year. The difference between the deposit premium and the actual subject earned premium will be settled to/from the Company within 15 days of February 15. However, in no event shall the annual adjusted premium be less than the Annual Minimum Premium for each layer, set forth below: |
Annual | Annual | Quarterly | ||
Minimum | Deposit | Deposit | ||
$1,842,400
|
$2,303,000 | $575,750 |
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C. | Payment by the Subscribing Reinsurer of its portion of Loss and Loss Adjustment Expenses paid by the Company or a Legal Entity shall be made by the Subscribing Reinsurer to the Company immediately upon reasonable evidence of the amount paid, being furnished by the Company. |
1. | Are reserved by the Company for an amount in excess of 50% of its retention. |
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A. | Disputes to be Arbitrated. As a condition precedent to any right of legal action hereunder disputes to be Arbitrated, with the exception of any dispute resolution procedures that are otherwise contained in this Contract, any and all disputes between the Company and any Subscribing Reinsurer or Reinsurers (“Party” individually or “Parties” collectively) arising out of, relating to, or concerning this Contract, whether sounding in contract or tort and whether arising during or after this Contract’s formation, or its termination, including disputes as to whether the Contract was validly formed or is voidable, shall be submitted to the decision of an arbitration panel (“Panel”). The Panel shall consist of an umpire and two party-appointed arbitrators unless a Party meets the requirements of Paragraph C of this Article and demands arbitration pursuant thereto, in which case the Panel would consist of an umpire only. | |
B. | Procedures. Except as provided herein, any arbitration shall be based upon the Procedures for the resolution of U.S. Insurance and Reinsurance Disputes, Regular Panel Version, dated April 2004 (the “Procedures”), developed by the Insurance and Reinsurance Dispute Resolution Task Force, subject to the following modifications: |
1. | Qualifications of the arbitrators and umpires shall be in accordance with Alternative section 6.2 of the Procedures. | ||
2. | The Parties hereby designate the umpire list maintained by XXXXX (U.S.) as the list to be used in the event that section 6.7(a) of the Procedures is invoked. | ||
3. | Unless otherwise mutually agreed, the members of the Panel shall be impartial and disinterested. The members of the Panel may not be: (1) in the control of any Party or its parent, affiliate, or agent, (2) a former director or officer of any Party or its parent, affiliate, |
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or agent, or (3) a likely witness in the arbitration. The requirement of impartiality means that all members of the Panel shall have the same obligation to approach the Panel’s duties and decisions with fairness and without consideration for the fact that Panel members may have been appointed by one of the Parties. The requirement of impartiality does not mean that any arbitrator can have no previous knowledge of or experience with respect to issues involved in the dispute or disputes. | |||
4. | The first sentence of Section 10.4 of the Procedures shall be replaced by the following sentence: “The Panel shall require that each Party submit concise written statements of position, including summaries of the facts and evidence a Party intends to present, discussion of the applicable law and the basis for the requested Award or denial of relief sought.” | ||
5. | Once the Panel has been constituted, no Party (or anyone acting for a Party) shall have any communications concerning the arbitration or any of the issues before the Panel with any member of the Panel that is not also disclosed to all other Parties and all members of the Panel. Each Panel member shall have a continuing duty to disclose promptly to all Parties and all Panel members any violation of this prohibition and the specifics of any improper communications that occurred. This prohibition shall remain in place until all challenges to any arbitration awards and decisions have been either waived or finally concluded. | ||
6. | Section 11.1 of the Procedures shall be replaced by the following provision: “The Parties may propound discovery seeking disclosure of such information and/or documents relevant to the dispute or necessary for the proper resolution of the dispute.” | ||
7. | Position statements may be amended at any reasonable time, but not later than the close of discovery without a showing to the Panel that the amending Party could not reasonably have raised the new claim or issue at an earlier time. | ||
8. | The Panel shall hold an evidentiary hearing, if one is necessary, within one year of the arbitration demand, unless the Parties otherwise agree. Should a Party seek a reasonable extension to this time frame for good cause shown, the other Party’s agreement shall not be unreasonably withheld. | ||
9. | To the extent permitted by the law, the Panel shall have the authority to issue subpoenas and other orders to enforce its decisions. | ||
10. | The Panel may award reasonable attorneys’ fees and arbitration costs to the prevailing Party, as determined by the Panel. | ||
11. | Section 14.3 of the Procedures shall be replaced by the following provision: “The Panel shall make a decision and issue an award with regard to the terms expressed in this Contract, and the custom and practice of the property and casualty insurance and reinsurance business, The Panel shall not be obligated to follow the strict rules of law and evidence.” |
C. | Alternative Streamlined Procedures. Notwithstanding the foregoing provisions of this Article, the Alternative Streamlined Procedures set forth in section 16 of the Procedures, as modified by sections B3, B4, and B9 through B11 of this Article, shall apply in the event that, in a consolidated proceeding or otherwise, the Party initiating arbitration is seeking payment of a total amount that is |
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no greater than one million dollars ($1,000,000), or the currency equivalent thereof. Sections 16.1, 16.2, 16.3 and the second sentence of section 16.4 of the Alternative Streamlined Procedures shall not apply. The Parties agree to comply with section 6.7 of the Procedures to appoint a single umpire, and hereby designate the umpire list maintained by XXXXX (U.S.) as the list to be used in section 6.7(a). | ||
D. | Hearing Location. The hearing shall be held in Boston, Massachusetts, unless the Parties mutually agree to a different location. | |
E. | Confirmation. Either Party may apply to a court of competent jurisdiction for an order confirming any award of the Panel; a judgment of that court shall thereupon be entered on any award. If such an order is issued, the Party against whom confirmation is sought shall pay the attorneys’ fees incurred of the Party who applied for the confirmation order and all court costs of any such proceeding. | |
F. | Equitable Relief from a Court of Law. Nothing herein shall be construed to prevent any participating Party from applying to a court of competent jurisdiction to issue a restraining order or other equitable relief to maintain the “status quo” of the Parties participating in the arbitration pending the decision and award by the Panel. | |
G. | Consolidated Proceedings. |
1. | Same contract, single Subscribing Reinsurer. Both the Company and any single Subscribing Reinsurer on this Contract have the right to combine any and all disputes between them that concern this Contract (including any renewal of this Contract or any contract for which this Contract is a renewal) into a single arbitration proceeding before a single Panel, except that the standard for determining whether a Party may add a new issue, claim, or dispute to an arbitration proceeding shall be the standard for amending a Position statement, as set forth in Paragraph B7 of this Article. | ||
2. | Multiple contracts, single Subscribing Reinsurer. The Company has the right to combine any and all disputes between the Company and a single Subscribing Reinsurer into a single arbitration proceeding before a single Panel where such disputes involve this Contract and any additional contracts between the two Parties, except that the standard for determining whether a Party may add a new issue, claim, or dispute to an arbitration proceeding shall be the standard for amending a Position statement, as set forth in Paragraph B7 of this Article. | ||
3. | Same contract, multiple Reinsurers. At the Company’s option, if more than one Subscribing Reinsurer is involved in arbitration relating to this Contract, where there are common questions of law or fact and a possibility of conflicting awards or inconsistent results, all such Reinsurers shall constitute and act as one Party for purposes of this Article and communications shall be made by the Company to each of the Reinsurers constituting the one Party; provided, however, that the Reinsurers shall have the right to assert several, rather than joint defenses or claims, and to be represented by separate counsel. This provision shall not change the liability of each of the Reinsurers under the terms of this Contract from several to joint. |
H. | Choice of Law. The law set forth in the Governing Law Article shall apply to this Arbitration Article. In addition, to the extent the Panel (or the umpire in an Alternative Streamlined Procedure) looks to applicable law, such Panel or umpire shall apply the law as set forth in the Governing Law Article of this Contract. |
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I. | Option to Litigate. Notwithstanding the foregoing provisions of this Article, to the extent that the Company has demanded payment of a total amount of at least twenty million dollars ($20,000,000) or the currency equivalent thereof from any Subscribing Reinsurer or from the Reinsurers, the Company reserves the right to initiate litigation to resolve any disputes arising from such demand. | |
J. | Survival of Article. This Article shall survive the termination or expiration of this Contract. |
A. | A State Insurance Department or other legal authority orders the Subscribing Reinsurer to cease writing business or has imposed upon it any other restrictions on or conditions relating to the Subscribing Reinsurer’s license or conduct of business in any jurisdiction; or | ||
B. | The Subscribing Reinsurer has become insolvent or has been placed into liquidation or receivership (whether voluntary or involuntary), or there have been instituted against it proceedings for the appointment of a receiver, liquidator, rehabilitator, conservator, trustee in bankruptcy, or other agent known by whatever name, to take possession of its assets or control of its operations; or | ||
C. | The Subscribing Reinsurer’s policyholders’ surplus has been reduced by 25% of the amount of surplus at the inception of this Contract; or | ||
D. | The Subscribing Reinsurer has become merged with, acquired, or controlled by any company, corporation, or individual(s) not controlling the Subscribing Reinsurer’s operations at the inception of this Contract; or | ||
E. | The Subscribing Reinsurer’s A.M. Best Rating has been assigned or downgraded below A- or Standard and Poor’s Rating has been assigned or downgraded below A-; or | ||
F. | The Subscribing Reinsurer fails to maintain its surplus at a level of at least 200% of the Subscribing Reinsurer’s Risk-Based Capital; or | ||
G. | The Subscribing Reinsurer announces intentions to cease underwriting operations; or | ||
H. | The Subscribing Reinsurer voluntarily ceases underwriting operations; or | ||
I. | The Subscribing Reinsurer has reinsured its entire liability under this Contract, or has entered into a novation extinguishing its entire liability under this Contract without the Company’s prior written consent. |
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A. | To pay or reimburse the Company for: |
1. | The Subscribing Reinsurer’s share under this Contract of premiums returned, but not yet recovered from the Subscribing Reinsurer, to the owners of Policies reinsured under this Contract due to cancellations of such Policies; and | ||
2. | The Subscribing Reinsurer’s share, under this Contract, of surrenders and benefits or liabilities paid by the Company, but not yet recovered from the Subscribing Reinsurer, under the terms and provisions of the Policies reinsured under this Contract; and | ||
3. | Any other amounts necessary to secure the credit or reduction from liability for reinsurance taken by the Company. |
B. | Where the Letters of Credit will expire without renewal or be reduced or replaced by Letters of Credit for a reduced amount and where the Subscribing Reinsurer’s entire obligations under this Contract remain unliquidated and undischarged ten (10) days prior to the termination date, to withdraw amounts equal to the Subscribing Reinsurer’s share of the liabilities, to the extent that the liabilities have not yet been funded by the Subscribing Reinsurer and exceed the amount of any reduced or replacement Letters of Credit, and deposit those amounts in a separate account in the name of the Company in a qualified U.S. financial institution apart from its general assets, in trust for such uses and purposes as specified above as may remain after withdrawal and for any period after the termination date. |
A. | If the statement shows that the Subscribing Reinsurer’s Obligations exceed the balance of credit as of the statement date, the Subscribing Reinsurer shall, within fifteen (15) days after receipt of notice of such excess, secure delivery to the Company of an amendment to the Letters of Credit increasing the amount of credit by the amount of such difference. | ||
B. | If, however, the statement shows that the Subscribing Reinsurer’s Obligations are less than the balance of credit as of the statement date, the Company shall, within fifteen (15) days after receipt of written request from the Subscribing Reinsurer, release such excess credit by agreeing to secure an amendment to the Letters of Credit reducing the amount of credit available by the amount of such excess credit. |
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A. | Mortality assumptions shall be calculated from the latest available United States Census tables as follows: | ||
Survivor Benefits — Total female or male, whichever applies; | |||
Disability Benefits — Total population. | |||
The mortality assumptions should reflect: |
1. | The mortality improvement since the most recent U.S. Census tables, | ||
2. | The life impairment of the injured worker (using the expectation from the Society of Actuaries’ Study.) |
B. | Remarriage expectations shall be in accordance with the assumptions used in the National Council on Compensation Insurance in its statistical tables, adjusted for the gender of the survivor. | ||
C. | For all future medical costs, projected cash payments shall be based upon the Company’s evaluation of long term medical care and rehabilitation requirements, using the average annual Medical Consumer Price Index (CPI) escalation rate of the past 20 years using the most recently published tables, going back 20 years. | ||
D. | For all future indemnity costs, projected cash payments shall be calculated based upon the average historical actual cost of living adjustment (COLA) over the past 10 — 20 years, however many years available up to 20 years, up through the most recent published data which is available from the State/Federal governing body over Workers Compensation whichever may apply. | ||
E. | The annual interest discount percentage shall be the yield of a Treasury Xxxx maturing 10 years from the commutation date. | ||
F. | The commutation value shall be the amount of cash payments made and/or that the parties estimate shall be made above the attachment point of this Contract pursuant to A. through E. of this Article, subject to the per occurrence limits on an undiscounted basis. The amount of cash payments made and/or estimated shall then be discounted by applying the percentage as defined in item E above to the expected loss payout pattern above the attachment point. |
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Excess of Loss Contract — January 1, 2007
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A. | To reimburse the Company for the Subscribing Reinsurer’s share of premiums returned to the owners of Policies reinsured under this Contract because of cancellations of the Policies; | ||
B. | To reimburse the Company for the Subscribing Reinsurer’s share of surrenders and benefits or losses paid by the Company under provisions of the Policies reinsured under this Contract; | ||
C. | To fund an account with the Company in an amount, at least, equal to the deduction for reinsurance ceded from the Company liabilities for Policies ceded under this Contract. The account shall include, but not be limited to, amounts for Policy reserves, claims and losses incurred (including losses incurred but not reported), loss adjustment expenses, and unearned premium reserves; and | ||
D. | To pay any other amounts the Company claims are due under this Contract. |
A. | If the statement shows that the Subscribing Reinsurer’s Obligations exceed the balance of credit as of the statement date, the Subscribing Reinsurer shall, within 30 days after receipt of notice of such excess, secure delivery to the Company of an amendment to the Letters of Credit increasing the amount of credit by the amount of such difference. | ||
B. | If, however, the statement shows that the Subscribing Reinsurer’s Obligations are less than the balance of credit as of the statement date, the Company shall, within 30 days after receipt of written request from the Subscribing Reinsurer, release such excess credit by agreeing to secure an amendment to the Letters of Credit reducing the amount of credit available by the amount of such excess credit. |
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Excess of Loss Contract — January 1, 2007
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A. | If a loss payment owed by the Subscribing Reinsurer to the Company is not received within 45 calendar days following the date of presentation to the Subscribing Reinsurer of information necessary to approve payment of the claim, and/or | ||
B. | If any premium payment owed by the Company to the Subscribing Reinsurer is not received within 45 calendar days following the date on which payment is due, and/or | ||
C. | If any premium adjustment, agreed by either Party to the other, is not received within 150 calendar days following the expiry or anniversary of this Contract, and/or | ||
D. | If any return of premiums, commissions, profit sharing, or any amounts not provided in paragraphs A, B, and C above, are not received in accordance with the date specified in this Contract or if no date is specified, within 90 calendar days following the date the debtor Party received the billing. |
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Excess of Loss Contract — January 1, 2007
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Business Produced | ||||
By Agents Resident | ||||
Profit Center | Legal Entities Used By Profit Center | in the Following State | ||
America First Insurance:
|
America First Insurance Co. | AK, LA, OK, TX | ||
America First Lloyd’s Insurance Co. | AK, LA, OK, TX | |||
Peerless Insurance Co. | AK, LA, OK, TX | |||
Liberty County Mutual Insurance Co. | For business classified as LMAM and produced by this Profit Center only | |||
Wausau/Business Solutions Group* | (Multi-State Business **) | |||
Peerless Indemnity Insurance Co. | (Multi-State Business **) | |||
The Netherlands Insurance Co. | (Multi-State Business **) | |||
Colorado Casualty:
|
Colorado Casualty Insurance Xx. | XX, XX, XX, XX, XX, XX | ||
Golden Eagle Insurance Corp. | AZ, CO, NM, NV, WY, UT | |||
One Beacon Insurance Co. Cession to Peerless Insurance Xx. | XX, XX, XX, XX, XX, XX | |||
Wausau/Business Solutions Group* | (Multi-State Business**) | |||
Peerless Indemnity Insurance Co. | (Multi-State Business**) | |||
The Netherlands Insurance Co. | (Multi-State Business**) | |||
Golden Eagle Insurance:
|
Golden Eagle Insurance Corp. | CA | ||
One Beacon Insurance Co. Cession to Peerless Insurance Co. | CA | |||
Peerless Insurance Co. | CA | |||
Wausau/Business Solutions Group* | (Multi-State Business**) | |||
Peerless Indemnity Insurance Co. | (Multi-State Business**) | |||
The Netherlands Insurance Co. | (Multi-State Business**) | |||
Hawkeye-Security Insurance:
|
Hawkeye-Security Insurance Co. | IA, KS, MN, MO, NE, ND, SD, WI | ||
Consolidated Insurance Co. | IA, KS, MN, MO, NE, ND, SD, WI | |||
Indiana Insurance Co. | IA, KS, MN, MO, NE, ND, SD, WI | |||
One Beacon Insurance Co. Cession to Peerless Insurance Co. | IA, KS, MN, MO, NE, ND, SD, WI | |||
Peerless Insurance Co. | IA, KS, MN, MO, NE, ND, SD, WI | |||
The Midwestern Indemnity Co | IA, KS, MN, MO, NE, ND, SD, WI |
Excess of Loss Contract — January 1, 2007
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Business Produced | ||||
By Agents Resident | ||||
Profit Center | Legal Entities Used By Profit Center | in the Following States | ||
Hawkeye-Security
Continued: |
Wausau/Business Solutions Group* | (Multi-State Business**) | ||
Peerless Indemnity Insurance Co. | (Multi-State Business**) | |||
The Netherlands Insurance Co. | (Multi-State Business**) | |||
Indiana Insurance:
|
Indiana Insurance Co. | IL, IN, KY, MI, OH, TN | ||
Consolidated Insurance Co. | IL, IN, KY, MI, OH, TN | |||
Mid-American Fire and Casualty Co. | IL, IN, KY, MI, OH, TN | |||
One Beacon Insurance Co. Cession to Peerless Insurance Co. | IL, IN, KY, MI, OH, TN | |||
Peerless Insurance Co. | IL, IN, KY, MI, OH, TN | |||
The Midwestern Indemnity Co. | IL, IN, KY, MI, OH, TN | |||
Globe American Casualty Co. | All States | |||
National Insurance Association | All States | |||
Wausau/Business Solutions Group* | (Multi-State Business**) | |||
Peerless Indemnity Insurance Co. | (Multi-State Business**) | |||
The Netherlands Insurance Co. | (Multi-State Business**) | |||
Liberty Northwest
Insurance:
|
Liberty Northwest Insurance Corp. | All States | ||
North Pacific Insurance Company | All States | |||
Oregon Automobile Insurance Co. | All States | |||
Wausau/Business Solutions Group* | (Multi-State Business**) | |||
Montgomery Insurance:
|
Montgomery Mutual Insurance Co. | AL, DC, DE, FL, GA, MD, MS, NC, SC, VA, WV | ||
Colorado Casualty Insurance Co. | AL, DC, DE, FL, GA, MD, MS, NC, SC, VA, WV | |||
Excelsior Insurance Co. | AL, DC, DE, FL, GA, MD, MS, NC, SC, VA, WV | |||
One Beacon Insurance Co. Cession to Peerless Insurance Co. | AL, DC, DE, FL, GA, MD, MS, NC, SC, VA, WV | |||
Peerless Insurance Co. | AL, DC, DE, FL, GA, MD, MS, NC, SC, VA, WV | |||
The Midwestern Indemnity Co. | AL, DC, DE, FL, GA, MD, MS, NC, SC, VA, WV | |||
Wausau/Business Solutions Group* | (Multi-State Business**) | |||
Peerless Indemnity Insurance Co. | (Multi-State Business**) | |||
The Netherlands Insurance Co. | (Multi-State Business**) | |||
Peerless Insurance:
|
Peerless Insurance Co. | CT, MA, ME, NH, NJ, NY, PA, RI, VT | ||
Excelsior Insurance Co. | CT, MA, ME, NH, NJ, NY, PA, RI, VT |
Excess of Loss Contract — January 1, 2007
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Business Produced | ||||
By Agents Resident | ||||
Profit Center | Legal Entities Used By Profit Center | in the Following States | ||
Peerless Insurance
Continued:
|
Indiana Insurance Co. | CT, MA, ME, NH, NJ, NY, PA, RI, VT | ||
One Beacon Insurance Co. Cessions to Peerless Insurance Co. | CT, MA, ME, NH, NJ, NY, PA, RI, VT | |||
Liberty Mutual Mid-Atlantic Insurance Co. | For business classified as LMAM and produced by this Profit Center only | |||
Wausau/Business Solutions Group* | (Multi-State Business**) | |||
Peerless Indemnity Insurance Co. | (Multi-State Business**) | |||
The Netherlands Insurance Co. | (Multi-State Business**) | |||
Summit:
|
Bridgefield Casualty Insurance Co. Bridgefield Employers Insurance Co. | All states, for WC and Employers Liability business, classified as LMAM and produced by this Profit Center only | ||
Wausau/Business Solutions Group* | (Multi-State Business **) | |||
Wausau Insurance: (including Business Solutions Group) |
Employers Insurance Co. of Wausau
Wausau General Insurance Co. Wausau Underwriters Insurance Co. Wausau Business Insurance Co. Liberty County Mutual Insurance Co. Liberty Mutual Insurance Co. Liberty Mutual Fire Insurance Co. LM Insurance Corp. Liberty Insurance Corp. The First Liberty Insurance Corp. |
All states, for business classified as LMAM and produced by this Profit Center only, excluding business classified as Multi-State business |
* | Wausau/Business Solutions Group consists of: Liberty Mutual Insurance Co., Liberty Mutual Fire Insurance Co., LM Insurance Corp., Liberty Insurance Corp., The First Liberty Insurance Corp., Liberty County Mutual Insurance Co., Employers Insurance Co. of Wausau, Wausau General insurance Co., Wausau Underwriters Insurance Co., and Wausau Business Insurance Co. | |
** | Agent responsible for the risk resides in the Profit Center but the risk is located in multiple states both in and outside of states assigned to the Profit Center. |
Excess of Loss Contract — January 1, 2007
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Pharmaceutical / medical risks
|
(Version 2005-Apr) |
# | Company Name | Headquarter location | ||
1
|
XXXXXX LABORATORIES | USA | ||
2
|
AKZO NOBEL | Netherlands | ||
3
|
ALLERGAN | USA | ||
4
|
ALPHARMA | USA | ||
5
|
ALTANA XX | Xxxxxxx | ||
0
|
XXXXX | XXX | ||
0
|
XXXXXXXX | Xxxxx | ||
8
|
ASTRAZENECA | UK | ||
9
|
XXXX LABORATORIES | USA | ||
10
|
XXXXXX INTERNATIONAL | USA | ||
00
|
XXXXX | Xxxxxxx | ||
00
|
XXXXXXXX XXXXX | Xxxxxx | ||
13
|
BIOGEN | USA | ||
14
|
BIOMET | USA | ||
15
|
B0EHRINGER INGELHEIM | Germany | ||
16
|
BOSTON SCIENTIFIC CORPORATION | USA | ||
17
|
XXXXXXX-XXXXX SQUIBB | USA | ||
18
|
CHIRON | USA | ||
19
|
CSL | Australia | ||
20
|
DAIICHI PHARMACEUTICAL | Japan | ||
21
|
DAINIPPON PHARMACEUTICAL | Japan | ||
22
|
XXXXXXX LIFESCIENCES | USA | ||
00
|
XXXXX | Xxxxx | ||
00
|
XXXX | Xxxxxxx | ||
25
|
FOREST LABORATORIES | USA | ||
26
|
GENENTECH | USA | ||
27
|
GENERAL ELECTRIC Healthcare | USA | ||
28
|
GENZYME | USA | ||
29
|
GLAXOSMITHKLINE | UK | ||
30
|
GUIDANT | USA | ||
31
|
HOSPIRA | USA | ||
32
|
IVAX | USA | ||
33
|
XXXXXXX & XXXXXXX | USA | ||
34
|
KING PHARMACEUTICALS | USA | ||
35
|
KYOWA HAKKO KOGYO | Japan | ||
36
|
LABORATOIRE SERVIER | France | ||
37
|
LILLY (XXX) | USA | ||
38
|
LUNDBECK | Denmark | ||
39
|
MEDIMMUNE | USA | ||
40
|
MEDTRONIC | USA | ||
41
|
MERCK & CO | USA | ||
00
|
XXXXX XXXX | Xxxxxxx | ||
43
|
MINNESOTA MINING & MANUFACTURING | USA | ||
44
|
MYLAN LABORATORIES | USA | ||
45
|
NOVARTIS | Xxxxxxxxxxx | ||
00
|
XXXX XXXXXXX | Xxxxxxx | ||
00
|
OTSUKA PHARMACEUTICAL | Japan | ||
48
|
PFIZER | USA | ||
49
|
PLIVA | Croatia | ||
50
|
PROCTER & XXXXXX | USA |
Excess of Loss Contract — January 1, 2007
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# | Company Name | Headquarter location | ||
51
|
XXXXXX XXXXXXXXX / PRA Holding | USA | ||
52
|
ROCHE | Switzerland | ||
53
|
SANKYO | Japan | ||
54
|
XXXXXX-XXXXXXX | Xxxxxx | ||
00
|
XXXXXXXX XX | Xxxxxxx | ||
56
|
SCHERING-PLOUGH | USA | ||
57
|
XXXXXXX PHARMA | Germany | ||
58
|
SERONO | Switzerland | ||
59
|
SHIONOGI | Japan | ||
60
|
SHIRE PHARMACEUTICALS | UK | ||
61
|
XXXXX & NEPHEW | UK | ||
00
|
XXXXXX | Xxxxxxx | ||
00
|
XX. XXXX MEDICAL | USA | ||
64
|
STRYKER | USA | ||
65
|
SUMITOMO PHARMACEUTICALS | Xxxxx | ||
00
|
XXXXXXX-XXXXXXX | Xxxxxxxxxxx | ||
00
|
XXXXXX | Xxxxx | ||
00
|
XXXXXX | Xxxxx | ||
69
|
TAP Pharmaceutical Products | USA | ||
70
|
TEVA PHARMACEUTICAL | Israel | ||
71
|
TYCO Healthcare | USA | ||
72
|
UCB | Belgium | ||
73
|
XXXXXX PHARMACEUTICAL | USA | ||
74
|
WYETH | USA | ||
75
|
XXXXXX | USA |
Excess of Loss Contract — January 1, 2007
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A. | Wherever the term “Company” or “Reinsured” or “Reassured” or whatever other term is used to designate the reinsured company or companies within the various attachments to the reinsurance agreement, the term shall be understood to mean Company or Reinsured or Reassured or whatever other term is used in the attached reinsurance agreement to designate the reinsured company or companies. | |
B. | Wherever the term “Agreement” or “Contract” or “Policy” or whatever other term is used to designate the attached reinsurance contract within the various attachments to the reinsurance contract, the term shall be understood to mean Agreement or Contract or Policy or whatever other term is used to designate the attached reinsurance contract. | |
C. | Wherever the term “Reinsurer” or “Reinsurers” or “Underwriters” or whatever other term is used to designate the reinsurer or reinsurers in the various attachments to the reinsurance agreement, the term shall be understood to mean Reinsurer or Reinsurers or Underwriters or whatever other term is used to designate the reinsuring company or companies. |
Excess of Loss Contract — January 1, 2007
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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. in 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): |
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 Liabilities 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: | |
Owners, Landlords and Tenants Liability, Agreementual Liability, Elevator Liability, Owners or Agreementors (including railroad) Protective Liability, Manufacturers and Agreementors 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): |
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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 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 the 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 question of a nuclear facility by any person or organization. | ||
III. | Under any Liability Coverage, to injury, sickness, disease, death or destruction, bodily injury or property damage resulting from the hazardous properties of nuclear material, if |
(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 threat. |
IV. | As used in this endorsement: |
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(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 |
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 operations 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 or the Independent Insurance Conference of Canada. |
*NOTE: | The words printed in BOLD TYPE 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. |
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1. | This Contract does not cover any loss or liability accruing to the Company 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 agreed that for all purposes of this Contract all the original liability Contracts of the Company, whether new, renewal or replacement, of the following classes, namely, |
Farmers’ Liability
Storekeepers’ Liability
which become effective on or after 31st December 1984, shall be deemed to include, from their inception dates and thereafter, the following provision: | ||
Limited Exclusion Provision — | ||
This Policy does not apply to bodily injury or property damage with respect to which the Insured is also insured under a Contract of nuclear energy liability insurance (whether the Insured is unnamed in such Contract and whether or not it is legally enforceable by the Insured) issued by the Nuclear Insurance Association of Canada or any other group or pool of insurers or would be an Insured under any such Policy but for its termination upon exhaustion of its limits of liability. | ||
With respect to property, loss of use of such property shall be deemed to be property damage. | ||
3. | Without in any way restricting the operation of Paragraph 1. of this Clause, it is agreed that for all purposes of this Contract all the original liability Contracts of the Company, whether new, renewal or replacement, of any class whatsoever (other than Personal Liability, Farmers’ Liability, Storekeepers’ Liability or Automobile Liability Contracts), which become effective on or after 31st December 1984, shall be deemed to include, from their inception dates and thereafter, the following provision: | |
Broad Exclusion Provision — | ||
It is agreed that this Policy does not apply: |
(a) | to liability imposed by or arising under the Nuclear Liability Act; nor | ||
(b) | to bodily injury or property damage with respect to which an Insured under this Policy is also insured under a Contract of nuclear energy liability insurance (whether the Insured is unnamed in such Contract and whether or not it is legally enforceable by the Insured) issued by the Nuclear Association of Canada or any other insurer or group or pool of insurers or would be an Insured under any such Policy but for its termination upon exhaustion of its limit of liability; nor | ||
(c) | to bodily injury or property damage resulting directly or indirectly from the nuclear energy hazard arising from: |
(i) | the ownership, maintenance, operation or use of a nuclear facility by or on behalf of an Insured; | ||
(ii) | the furnishing of an Insured of services, materials, parts or equipment in connection with the planning, construction, maintenance, operation or use of any nuclear facility; and |
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(iii) | the possession, consumption, use, handling, disposal or transportation of fissionable substances, or of other radioactive material (except radioactive isotopes, away from a nuclear facility, which have reached the final stage of fabrication so as to be usable for any scientific, medical, agricultural, commercial or industrial purpose) used, distributed, handled or sold by an Insured. |
(1) | The term “nuclear energy hazard” means the radioactive, toxic, explosive, or other hazardous properties of radioactive material; | ||
(2) | The term “radioactive material” means uranium, thorium, plutonium, neptunium, their respective derivatives and compounds, radioactive isotopes of other elements and any other substances that the Atomic Energy Control Board may, by regulation, designate as being prescribed substances capable of releasing atomic energy, or as being requisite for the production, use or application of atomic energy; | ||
(3) | The term “nuclear facility” means: |
(a) | any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a xxxxxxxx xxxx of plutonium, thorium and uranium or any one or more of them; | ||
(b) | any equipment or device designed or used for (i) separating the isotopes of plutonium, thorium and uranium or any one or more of them, (ii) processing or utilizing spent fuel, or (iii) handling, processing or packaging waste; | ||
(c) | any equipment or device used for the processing, fabricating or alloying of plutonium, thorium or uranium enriched in the isotope uranium 233 or in the isotope uranium 235, or any one or more of them 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 radioactive material; and includes the site on which any of the foregoing is located, together with all operations conducted thereon and all premises used for such operations. |
(4) | The term “fissionable substance” means any prescribed substance that is, or from which can be obtained, a substance capable of releasing atomic energy by nuclear fission. | ||
(5) | With respect to property, loss of use of such property shall be deemed to be property damage. |
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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 operations of Nuclear Incident Exclusion Clauses, — Liability, — Physical Damage, — Boiler and Machinery and paragraph 1. of this Clause, it is understood and agreed that for all purposes of the reinsurance assumed by the Reinsurer from the Reinsured, all original insurance Policies or Contracts of the Reinsured (new, renewal and replacement) shall be deemed to include the applicable existing Nuclear Clause and/or Nuclear Exclusion Clause(s) in effect at the time and any subsequent revisions thereto as agreed upon and approved by the Insurance Industry and/or a qualified Advisory or Rating Bureau. |
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(hereinafter referred to as the “Agreement”)
REINSURANCE CONTRACT
No. 2000290
Boston, Massachusetts
(hereinafter referred to as the “Subscribing Reinsurer”)
Excess of Loss Reinsurance Contract
January 1, 2007
Interest & Liabilities Agreement
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ATTEST:
|
PEERLESS INSURANCE COMPANY | |||||
/s/ Xxxxxxx Xxxxxxxx
|
/s/ Xxxxx X. Xxxxxxxxx
|
|||||
Xxxxxxx Xxxxxxxx
|
Xxxxx X. Xxxxxxxxx | |||||
Name
|
Name | |||||
Vice President and Chief Actuary
|
Asst. Vice President-Reinsurance Mgmt. | |||||
Title
|
Title |
ATTEST:
|
LIBERTY MUTUAL INSURANCE COMPANY | |||||
/s/ Xxxx X. XxxXxxx Xx.
|
/s/ Xxxxxx Xxxxxx Xxxxx
|
|||||
Xxxx X. XxxXxxx Xx.
|
Xxxxxx Xxxxxx Xxxxx | |||||
Name
|
Name | |||||
Director-Ceded Reinsurance
|
Vice President | |||||
Title
|
Title |
Excess of Loss Reinsurance Contract
January 1, 2007
Interest & Liabilities Agreement
Page 2 of 2