Exhibit 10.42
REINSURANCE AGREEMENT
BETWEEN
SAFETY INSURANCE COMPANY
SAFETY INDEMNITY INSURANCE COMPANY
AND
THE HARTFORD STEAM BOILER
INSPECTION AND INSURANCE COMPANY
REF. NO. 2000-004
TREATY NO. 1000356
Effective February 1, 2000
Ex10.42
REF. NO. 2000-004
TREATY NO. 1000356
REINSURANCE AGREEMENT
(hereinafter called the "Agreement")
between
SAFETY INSURANCE COMPANY
SAFETY INDEMNITY INSURANCE COMPANY
(hereinafter called the "Company")
and
THE HARTFORD STEAM BOILER INSPECTION AND INSURANCE COMPANY
(hereinafter called the "Reinsurer")
EQUIPMENT BREAKDOWN COVERAGE
ARTICLE 1 - BUSINESS COVERED
By this Agreement, the Company obligates itself to cede to the Reinsurer and the
Reinsurer obligates itself to accept as reinsurance 100% of the Equipment
Breakdown liability of the Company on each risk insured under Equipment
Breakdown Coverage Endorsement, Form No. SBM 001 11/99, attached to the
Company's Businessowners policy, effective as respects Accidents occurring
during the term of this Agreement under new and renewal policies becoming
effective on or after the effective date of this Agreement.
ARTICLE 2 - LIMIT OF LIABILITY
The Reinsurer's liability shall not exceed $25,000,000 for any one Accident.
ARTICLE 3 - TERRITORY
This Agreement shall only apply to policies covering property located within the
territorial limits of the United States of America, including its territories
and possessions, and Puerto Rico.
ARTICLE 4 - FORMS, RATES AND RULES
Reinsurance will be provided only in accordance with forms, rates and rules
mutually acceptable to the Company and the Reinsurer.
ARTICLE 5 - DEFINITIONS
A. The term "Equipment Breakdown" as used herein means coverage provided
under the Company's Businessowners policies by the addition of the
Equipment Breakdown
Ex10.42
REF. NO. 2000-004
TREATY NO. 1000356
Coverage Endorsement, Form No. SBM 001 11/99, except as otherwise
excluded under ARTICLE 6, EXCLUSIONS.
B. For the purposes of this Agreement, the term "Accident" shall follow
the definition set forth under the Equipment Breakdown Coverage
Endorsement, Form No. SBM 001 11/99.
C. The term "policies" as used herein means the Company's binders and
policies providing insurance on the risks reinsured under this
Agreement.
ARTICLE 6 - EXCLUSIONS
This Agreement does not apply to and specifically excludes:
A. Risks not eligible for the Company's Businessowners program.
B. Loss or damage caused by or resulting from any of the following causes
of loss:
(1) Fire (including fire resulting from an Accident); or water or
other means used to extinguish a fire.
(2) Explosion of gas or unconsumed fuel within the furnace of any
boiler or fired vessel or within the passages from that
furnace to the atmosphere.
(3) Collision or upset.
(4) Flood, surface water, waves, tides, tidal waves, overflow of
any body of water, or their spray, all whether driven by wind
or not, except for the cost of drying out electrical
equipment.
(5) Any earth movement, including but not limited to earthquake,
subsidence, sinkhole collapse, landslide, mudslide, earth
sinking, tsunami or volcanic action.
C. Loss or damage caused by or resulting from any of the following causes
of loss, only to the extent that coverage for loss or damage from that
cause of loss is provided by the property policy if Equipment Breakdown
coverage had not been added:
(1) Lightning; explosion (except for steam or centrifugal
explosion); windstorm or hail; smoke; aircraft or vehicles;
riot or civil commotion; vandalism; or sprinkler leakage.
(2) Breakage of glass; falling objects; weight of snow, ice or
sleet; freezing (caused by cold weather); collapse; or molten
material.
(3) Water damage (including water damage resulting from an
Accident).
D. Loss or Damage to property in transit.
Ex10.42
REF. NO. 2000-004
TREATY NO. 1000356
E. War risk, bombardment, invasion, insurrection, rebellion, revolution,
civil war, military or usurped power, or confiscation by order of any
government or public authority, as excluded under the Company's
Businessowners policies.
F. The Company's liability as a member, subscriber or reinsurer of any
pool, syndicate, association or other combination of insurers or
reinsurers formed for the purpose of covering specific perils, specific
classes of business or for the purpose of insuring risks located in
specific geographical areas.
G. All liability of the Company arising by contract, operation of law, or
otherwise, from its participation or membership, whether voluntary or
involuntary, in any insolvency fund. "Insolvency fund" includes any
guaranty fund, insolvency fluid, plan, pool, association, fund or other
arrangement, howsoever denominated, established or governed, which
provides for any assessment of or payment or assumption by the Company
of part or all of any claim, debt, charge, fee, or other obligation of
an insurer, or its successors or assigns, which has been declared by
any competent authority to be insolvent, or which is otherwise deemed
unable to meet any claim, debt, charge, fee, or other obligation in
whole or in part.
H. Nuclear risk:
(1) This reinsurance 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)
above, it is understood and agreed that this reinsurance does
not cover loss caused by or resulting from nuclear reaction or
radiation, or radioactive contamination, however caused, even
though any other cause or event contributes concurrently or in
any sequence to the loss. However, it is agreed that loss
arising out of the use of radioactive isotopes in any form is
not hereby excluded from any reinsurance protection.
ARTICLE 7 - OTHER PROVISIONS
The Reinsurer shall have the right to inspect each risk reinsured hereunder, and
shall perform jurisdictional inspections required by state or municipal boiler
and pressure vessel regulations on said risks. If any inspection discloses an
insured object which is found to be in, or exposed to, a dangerous condition,
the inspector may suspend coverage on such insured object in accordance with the
provisions of the policy.
ARTICLE 8 - TERM AND TERMINATION
This Agreement shall become effective on February 1, 2000 and shall continue in
force until terminated. This Agreement may be terminated by either party giving
the other six months prior
Ex10.42
REF. NO. 2000-004
TREATY NO. 1000356
notice in writing; provided that the Reinsurer shall continue to be bound
hereunder for the balance of the term of all policies of insurance written by
the Company which remain in force on the termination date of this Agreement.
ARTICLE 9 - CLAIMS
A. The Company will give the Reinsurer notice as soon as practicable of
any claim or loss arising under coverages subject to this Agreement.
The Reinsurer shall advise the Company of its estimate of each such
claim or loss, and keep the Company advised of any change in such
estimate.
B. The Reinsurer at its expense will investigate, negotiate and enter into
settlement agreements or defend all such claims and losses in
accordance with the terms of the coverage subject to this Agreement,
and shall defend and hold harmless the Company against any suit brought
solely under coverages subject to this Agreement; provided that the
Company may at its own expense participate in any such investigation,
negotiation, settlement or defense.
C. In the event of a settlement by the Reinsurer of a claim or loss
arising under coverages subject to this Agreement, the Company will,
pursuant to said settlement, make payment directly to the Insured,
under the coverages subject to this Agreement. Upon making such
payment, and when requested by the Reinsurer, the Company will secure
its subrogation rights under the terms of the coverage subject to this
Agreement and will then assign such subrogation rights to the
Reinsurer.
D. In the event of a claim or loss involving coverages subject to this
Agreement and coverages not subject to this Agreement:
(1) The Company shall join the Reinsurer in the investigation,
adjustment, negotiation, settlement or defense of all such
claims and losses.
(2) Court costs, interest on judgments, and the cost of defense,
including attorneys' fees, which arise in connection with any
investigation, adjustment, negotiation, settlement or defense
of such claims or losses, shall be apportioned between the
Company and the Reinsurer in proportion to their respective
liabilities as finally determined or as mutually agreed upon.
(3) The Company and the Reinsurer agree that Equipment Breakdown
coverage will not be considered "primary" or "specific" and
that the "Guiding Principles" in use at such time shall apply
to all such claims or losses to the extent to which such
"Guiding Principles" are applicable. This Paragraph shall not
apply and the Reinsurer agrees to be primary on Perishable
Goods and Computer Equipment Coverage resulting from an
Accident as covered under the Equipment Breakdown Endorsement
in the Company's policy.
Ex10.42
REF. NO. 2000-004
TREATY NO. 1000356
ARTICLE 10 - INDEMNIFICATION AND DEFENSE
Each party hereto agrees to indemnify and defend the other party hereto against
any and all claims for loss, liability or damage arising out of or in connection
with the acts or omissions of employees and servants of such indemnifying party,
when such acts or omissions result from or are incidental to activities and
services conducted solely in connection with policies issued by the Company and
reinsured, in whole or in part, by the Reinsurer. This undertaking shall apply
irrespective of any limit of liability stated in this Agreement.
ARTICLE 11 - REINSURANCE PREMIUM
A. For the period from February 1, 2000 through January 31, 2001, the
Company shall pay to the Reinsurer 4.05% of the Company's Net Premiums
Written. The term "Net Premiums Written" as used herein means the
Businessowners gross package premiums, plus additional premiums less
cancellations and return premiums.
B. The rate for each subsequent twelve-month period shall be mutually
agreed upon.
ARTICLE 12 - REPORTS AND REMITTANCES
A. Within 30 days after the close of each month, the Company shall report
to the Reinsurer the Net Premiums Written during that month and the
Reinsurance premium as calculated in accordance with ARTICLE 11.
Payment will be immediately due and payable by the debtor party.
B. Within 30 days after the close of each month, the Reinsurer shall
report to the Company all losses authorized during that month by the
Reinsurer pursuant to ARTICLE 9, CLAIMS. All such losses are to be
individually listed and identified. The balance shall become
immediately due and payable thereafter by the Reinsurer.
C. The Company shall periodically furnish the Reinsurer such reports and
information relating to the policies reinsured hereunder, as may be
reasonably required for inspection, loss control and loss adjustment
activities.
D. Within 30 days after the close of each calendar quarter, the Company
shall report to the Reinsurer the ceded unearned premiums and ceded
outstanding loss reserves as of the end of the calendar quarter.
E. Each party shall furnish the other such figures as may be required for
financial statement purposes.
ARTICLE 13 - ARBITRATION
A. In the event a disagreement arises over a loss which the Company and
the Reinsurer agree is covered by a policy issued by the Company and
reinsured by the Reinsurer with respect to coverages subject to this
Agreement, and further agree with the Insured in writing as to the
amount of loss payable under the policy, but disagree as to what
Ex10.42
REF. NO. 2000-004
TREATY NO. 1000356
proportion of such insured loss each shall pay, such loss shall be
settled by payment of the full amount thereof to the Insured, the
Company and the Reinsurer each to contribute the sum for which it
admits liability plus an amount equal to one-half (1/2) of the amount
of loss which is in disagreement. A final determination of the
apportionment of the loss shall then be made in accordance with the
arbitration provisions of this Article.
B. All disputes or differences arising out of the interpretation of this
Agreement shall be submitted to the decision of a board of arbitration
of the American Arbitration Association consisting of two arbitrators,
one to be chosen by each party and in the event of the arbitrators
failing to agree, to the decision of any umpire to be chosen by the
arbitrators. The arbitrators and umpire shall be disinterested active
or retired officers of property or casualty insurance or reinsurance
companies. If either of the parties fails to appoint an arbitrator
within sixty days after being required by the other party in writing to
do so, or if the arbitrators fail to appoint an umpire, within sixty
days of a request in writing by either of them to do so, such
arbitrator or umpire, as the case may be, shall at the request of
either party be appointed by any court of competent jurisdiction.
C. The applicant shall submit its case within sixty days after the
appointment of the board of arbitration, and the respondent shall
submit its reply within sixty days after receipt of the claim. The
arbitrators and umpire are relieved from all judicial formality and may
abstain from following the strict rules of evidence. They shall settle
any dispute under this Agreement according to an equitable rather than
a strictly legal interpretation of its terms and their decision shall
be final and not subject to appeal. Judgment may be entered upon the
final decision of the arbitrators in any court having jurisdiction.
D. Each party shall bear the expenses of its arbitrator and shall jointly
and equally share with the other the expense of the umpire and of the
arbitration.
E. This Article shall survive the termination of this Agreement.
ARTICLE 14 - INSOLVENCY
A. In the event of the insolvency of the Company, reinsurance due under
this Agreement shall be payable, with reasonable provision for
verification, on the basis of liability of the Company under policies
reinsured without diminution because of the inability of the Company to
pay all or part of any such claims. Such payments by the Reinsurer
shall be made directly to the Company or its liquidator, receiver, or
statutory successor, except as provided by Section 4118(a) of the New
York Insurance Law or except where the Agreement specifically provides
another payee of such reinsurance in the event of the insolvency of the
Company, and where the Reinsurer with the consent of the direct insured
or insureds has assumed such policy obligations of the Company as
direct obligations of the Reinsurer to the payees under such policies
arid in substitution for the obligations of the Company to such payees.
B. It is agreed, however, that the liquidator, receiver or statutory
successor of the insolvent Company shall give written notice to the
Reinsurer of the pendency of a claim against the
Ex10.42
REF. NO. 2000-004
TREATY NO. 1000356
insolvent Company on the policy or policies reinsured within a
reasonable time after such claim is filed in the insolvency proceeding
and that during the pendency of such claim the Reinsurer may
investigate such claim and interpose, at its own expense, in the
proceeding where such claim is to be adjudicated, any defense or
defenses which it may deem available to the Company or its liquidator
or receiver or statutory successor. The expense thus incurred by the
Reinsurer shall be chargeable, subject to court approval, against the
insolvent Company as part of the expense of liquidation to the extent
of a proportionate share of the benefit which may accrue to the Company
solely as a result of the defense undertaken by the Reinsurer. Where
two or more Reinsurers are involved in the same claim and a majority in
interest elect to interpose defense to such claim the expense shall be
apportioned in accordance with the terms of this Agreement as though
such expense had been incurred by the insolvent Company.
ARTICLE 15 - ACCESS TO RECORDS
The Reinsurer or its designated representatives shall have access at any and all
reasonable times during the term of this Agreement (or after its termination for
open items) to such books and records of the Company, wherever located, as shall
reflect premium and loss transactions of the Company for the purpose of
obtaining any and all information concerning this Agreement or the subject
matter hereof.
ARTICLE 16 - ERRORS AND OMISSIONS
Inadvertent delays, errors or omissions made in connection with this Agreement
or any transaction hereunder shall not relieve either party from any liability
which would have attached had such delay, error or omission not occurred,
provided always that such error or omission is rectified as soon as possible
after discovery.
Ex10.42
REF. NO. 2000-004
TREATY NO. 1000356
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed, in duplicate, in Boston, Massachusetts, this 27th day of December,
1999.
SAFETY INSURANCE COMPANY
SAFETY INDEMNITY INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxx, Xx.
-----------------------------------------------------
Attest: /s/ Xxxxxx Xxxxxxx
-------------------------------------------------
And in Hartford, Connecticut, this 20th day of December, 1999.
THE HARTFORD STEAM BOILER INSPECTION AND
INSURANCE COMPANY
By: /s/ Xxxxxxx X. Xxxxx
-----------------------------------------------------
Xxxxxxx X. Xxxxxx, Assistant Vice President
Attest: /s/ Xxxx X. Xxxxx Chomowicz
-------------------------------------------------
Xxxx X. Xxxxx Chomowicz, Assistant Vice President
Ex10.42
REF. NO. 2000-004-01
TREATY NO. 1000356
ADDENDUM NO. 1
ATTACHED TO AND FORMING A PART OF
THE REINSURANCE AGREEMENT
(hereinafter referred to as "Agreement")
between
SAFETY INSURANCE COMPANY
SAFETY INDEMNITY INSURANCE COMPANY
(hereinafter referred to as the "Company")
and
THE HARTFORD STEAM BOILER INSPECTION AND INSURANCE COMPANY
(hereinafter referred to as the "Reinsurer")
IT IS UNDERSTOOD AND AGREED that, effective February 1, 2001, the following
amendment is made to the Agreement to which this Addendum attaches:
1. ARTICLE 11, REINSURANCE PREMIUM, is hereby amended to read as
follows:
"A. For policies attaching during the period from
February 1, 2001 through January 31, 2002, the
Company shall pay to the Reinsurer 4.05% of the
Company's Net Premiums Written. The term 'Net
Premiums Written' as used herein means the
Businessowners gross package premiums, plus
additional premiums less cancellations and return
premiums.
B. The rate set forth in Paragraph A shall be subject to
annual review, and shall be automatically renewed for
each subsequent twelve month period unless amended by
mutual agreement."
All other terms and conditions of this Agreement remain unchanged and apply with
full force and effect.
Ex10.42
REF. NO. 2000-004-01
TREATY NO. 1000356
IN WITNESS WHEREOF, the parties hereto have caused this Addendum to be executed,
in duplicate, in Boston, Massachusetts, this 10th day of July, 2001.
SAFETY INSURANCE COMPANY
SAFETY INDEMNITY INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxx, Xx.
-----------------------------------------------------
Attest: /s/ Xxxxxx Xxxxxxx
-------------------------------------------------
And in Hartford, Connecticut, this 12th day of June, 2001.
THE HARTFORD STEAM BOILER INSPECTION AND
INSURANCE COMPANY
By: /s/ Xxxxxxx X. Xxxxx
-----------------------------------------------------
Xxxxxxx X. Xxxxxx, Assistant Vice President
Attest: /s/ [ILLEGIBLE]
-------------------------------------------------
Ex10.42
REF. NO. 2000-004-02
ADDENDUM NO. 2
ATTACHED TO AND FORMING A PART OF
ThE REINSURANCE AGREEMENT
(hereinafter referred to as "Agreement")
between
SAFETY INSURANCE COMPANY
SAFETY INDEMNITY INSURANCE COMPANY
(hereinafter referred to as the "Company")
and
THE HARTFORD STEAM BOILER INSPECTION AND INSURANCE COMPANY
(hereinafter referred to as the "Reinsurer")
IT IS UNDERSTOOD AND AGREED that, effective June 1, 2001, the following
amendments are made to the Agreement to which this Addendum attaches.
1. Business Covered under this Agreement is extended to include
the Equipment Breakdown liability of the Company under its
Businessowners policies to which the Equipment Breakdown
Endorsement, Form No. SBM 001 06 01, or subsequent editions
thereof, is attached, and tender its Commercial Package
policies to which the Equipment Breakdown Endorsement, Form
No. SEB 012 0601, or subsequent editions thereof, is attached.
2. Wherever referenced in this Agreement, Treaty No. 1000356
shall apply only with respect to Businessowners policies.
Treaty No. 1000494 is hereby added and shall apply with
respect to Commercial Package policies.
3. ARTICLE 5, DEFINITIONS are hereby amended to read as follows:
"A. The term 'Equipment Breakdown' as used herein means
coverage provided under the Company's Businessowners
policies by the addition of the Equipment Breakdown
Coverage Endorsement, Form No. SBM 001 11/99 or SBM
001 06 01, or subsequent editions thereof, or under
the Company's Commercial Package policies by the
addition of the Equipment Breakdown Coverage
Endorsement, Form No. SEB 012 06 01, or subsequent
editions thereof, whichever is applicable, except as
otherwise excluded under ARTICLE 6, EXCLUSIONS.
B. For the purposes of this Agreement, the term
'Accident' shall follow the definition set forth
under the Equipment Breakdown Coverage
Ex10.42
REF. NO. 2000-004-02
Endorsement, Form No. SBM 001 11/99, SBM 001 06 01,
or SEB 012 06 01, or subsequent editions thereof,
whichever is applicable, except as otherwise excluded
under ARTICLE 6, EXCLUSIONS.
C. The term 'policies' as used herein means the
Company's binders and policies providing insurance on
the risks reinsured under this Agreement.
D. The term 'Referral Risks' as used herein means any
risk which requires referral to the Reinsurer as set
forth in Exhibit A - Referral Guidelines."
4. Paragraph A of ARTICLE 6, EXCLUSIONS, is hereby deleted.
5. ARTICLE 7, OTHER PROVISIONS, is hereby amended to read as
follows:
"A. The Reinsurer shall have the right to inspect each
risk reinsured hereunder, and shall perform
jurisdictional inspections required by state or
municipal boiler and pressure vessel regulations on
said risks. If any inspection discloses an insured
object which is found to be in, or exposed to, a
dangerous condition, the inspector may suspend
coverage on such insured object in accordance with
the provisions of the policy.
B. Referral Risks shall be submitted to the Reinsurer
and the Reinsurer shall issue a reinsurance quotation
to the Company defining specifically the terms and
conditions for Equipment Breakdown coverage and the
reinsurance premium for each such risk. To the extent
that said reinsurance quotation modifies any terms,
conditions or exclusions in this Agreement, the
terms, conditions or exclusions set forth in the
reinsurance quotation shall apply to such risk."
6. Paragraph D(3) of ARTICLE 9, CLAIMS, is hereby amended to read
as follows:
"(3) The Company and the Reinsurer agree that Equipment
Breakdown coverage will not be considered 'primary'
or 'specific' and that the 'Guiding Principles' in
use at such time shall apply to all such claims or
losses to the extent to which such 'Guiding
Principles' are applicable. This Paragraph shall not
apply and the Reinsurer agrees to be primary on
Spoilage, Computer Equipment Coverage and Data
Restoration resulting from an Accident as covered
under the Equipment Breakdown Endorsement in the
Company's policy."
7. ARTICLE 11, REINSURANCE PREMIUM, is hereby amended as follows:
"A. For Businessowners policies attaching during the
period from February 1, 2001 through January 31,
2002, the Company shall pay to the Reinsurer 4.05% of
the Company's Net Premiums Written. The term 'Net
Premiums Written' as used herein means the
Businessowners gross package premiums, plus
additional premiums less cancellations and return
premiums.
Ex10.42
REF. NO. 2000-004-02
B. For Commercial Package policies attaching during the
period from June 1, 2001 through May 31, 2002, the
Company shall pay to the Reinsurer 6.94% of the
Company's Net Premiums Written. The term 'Net
Premiums Written' as used herein means the Commercial
Package gross property policy premiums, plus
additional premiums less cancellations and return
premiums.
Said rate shall be subject to an additional surcharge
for increased sublimits in accordance with the
following table:
COMPUTER AND HAZARDOUS EXPEDITING
SUBLIMIT SPOILAGE DATA RESTORATION SUBSTANCES EXPENSES CFC'S
-------- -------- ---------------- ---------- ---------- -----
$50,000 2% 1.5% 2.5% 1% 2.5%
$10,000 4% 2% 4.5% 2% 3.5%
C. The rates set forth in Paragraphs A and B shall be
subject to annual review, and shall be automatically
renewed for each subsequent twelve month period
unless amended by mutual agreement.
D. For policies covering Referral Risks, the Company
shall pay to the Reinsurer 100% of the reinsurance
premium as set forth in the reinsurance quotation by
the Reinsurer accepted by the Company.
E. In the event Special Acceptances are covered
hereunder as set forth in ARTICLE 21, SPECIAL
ACCEPTANCES, the Company shall pay to the Reinsurer
the reinsurance premium agreed upon for said Special
Acceptances."
8. Paragraph A of ARTICLE 12, REPORTS AND REMITTANCES, is hereby
amended to read as follows:
"A. Within 30 days after the close of each month, the
Company shall report to the Reinsurer the Net
Premiums Written during that month and the
Reinsurance Premium written during that month as
calculated in accordance with ARTICLE 11. The report
will be accompanied by a xxxx or credit memorandum
showing gross balance due less ceding commissions.
The balance of this xxxx or credit memorandum shall
be immediately due and payable thereafter by the
debtor Party."
9. The following Articles are hereby added to the Agreement:
"ARTICLE 20 - CEDING COMMISSION
Ex10.42
REF. NO. 2000-004-02
A. As respects the reinsurance premium for
Businessowners or Commercial Package policies other
than Referral Risks, no ceding commission shall be
allowed.
B. As respects the reinsurance premium for Referral
Risks, the Reinsurer shall allow the Company a ceding
commission of 30% of each policy's gross Equipment
Breakdown premium ceded under this Agreement, unless
otherwise agreed upon by both parties for specific
policy forms or particular accounts.
ARTICLE 21 - SPECIAL ACCEPTANCES
Business which is not within the scope of this Agreement may
be submitted to the Reinsurer for special acceptance hereunder
and such business, if accepted by the Reinsurer, shall be
subject to all terms, conditions and limitations of this
Agreement except as modified by the special acceptance."
All other terms and conditions of the
Reinsurance Agreement to which this
Addendum is attached are unchanged and apply with full force and effect to the
business covered by this Addendum.
Ex10.42
REF. NO. 2000-004-02
IN WITNESS WHEREOF, the parties hereto have caused this Addendum to be executed,
in duplicate, in Boston, Massachusetts, this 10th day of July, 2001.
SAFETY INSURANCE COMPANY
SAFETY INDEMNITY INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxx, Xx.
-----------------------------------------------------
Attest: /s/ Xxxxxx Xxxxxxx
-------------------------------------------------
And in Hartford, Connecticut, this 12th day of June, 2001.
THE HARTFORD STEAM BOILER INSPECTION AND
INSURANCE COMPANY
By: /s/ Xxxxxxx X. Xxxxx
-----------------------------------------------------
Xxxxxxx X. Xxxxxx, Assistant Vice President
Attest: /s/ [ILLEGIBLE]
-------------------------------------------------
Ex10.42
REF. NO. 2000-004-02
EXHIBIT A - REFERRAL GUIDELINES
ATTACHED TO AND FORMING A PART OF
THE
REINSURANCE AGREEMENT
between
SAFETY INSURANCE COMPANY
SAFETY INDEMNITY INSURANCE COMPANY
and
THE HARTFORD STEAM BOILER
INSPECTION AND INSURANCE COMPANY
Risks that meet any one of the following criteria must be referred to the
Reinsurer for a reinsurance quotation.
- Any risk that has a location with a Total Insured Value
(Building, Business Personal Property and Business Income)
greater than: Owner: $20,000,000 or Tenant: $10,000,000.
- Any risk that has a location in a Printing occupancy with a
Total Insured Value greater than $5,000,000.
- Any risk, regardless of occupancy or value, with any sublimit
for Equipment Breakdown that exceeds the following amounts.
- $25,000 as respects the following coverages for
Businessowners:
Expediting Expenses
Hazardous Substances
Spoilage
Computer Equipment
CFC Refrigerants
- $100,000 as respects the following coverages for
Commercial Package:
Expediting Expenses
Hazardous Substances
Spoilage
Computer Equipment
CFC Refrigerants
- Any risk, regardless of occupancy or value, which is engaged
in the generation of power, other than emergency back-up
power.
Ex10.42
REF. NO. 2000-004-02
- Any risk that has a location in an occupancy group specified
in the Reinsurance Proposal as risks that must be referred to
the Reinsurer for underwriting, including but not limited to
the occupancies listed below.
- Cement Manufacturing
- Electronics Manufacturing
- Heavy Manufacturing
- Lumber & Wood Products Manufacturing
- Primary Metals Manufacturing
- Plastics Manufacturing
- Pulp & Paper Manufacturing
- Rubber Manufacturing
- Chemicals/Oil/Gas Manufacturing, Extraction
- Mining
Ex10.42
