Common use of AUTOMATIC REINSTATEMENT Clause in Contracts

AUTOMATIC REINSTATEMENT. The Limit of Liability of the Reinsurer with respect to each Occurrence shall be reduced by an amount equal to the amount of liability paid by the Reinsurer, but that part of the liability of the Reinsurer that is so reduced shall be automatically reinstated from the date of the Occurrence for which payment is made; however, the Limits of Liability of the Reinsurer under the Second and Third Excess Covers with respect to all Occurrences taking place during each Agreement Year shall not exceed the amounts set forth in the section entitled LIABILITY OF THE REINSURER. In consideration of this automatic reinstatement: (a) For each amount so reinstated in the First Excess Cover, there shall be no additional reinsurance premium; (b) For first $5,000,000 so reinstated in the Second and Third Excess Covers, there shall be no additional reinsurance premium; (c) For the next $5,000,000, so reinstated in the Second Excess Cover, the Company shall pay to the Reinsurer an additional reinsurance premium that shall be the product of 100% of the reinsurance premium set forth in sub-paragraph (b) of the section entitled REINSURANCE PREMIUM for the Agreement Year multiplied by the amount of the reinstated Limit of Liability of the Reinsurer divided by $5,000,000; (d) For the next $5,000,000, so reinstated in the Third Excess Cover, the Company shall pay to the Reinsurer an additional reinsurance premium that shall be the product of 100% of the reinsurance premium set forth in sub-paragraph (c) of the section entitled REINSURANCE PREMIUM for the Agreement Year multiplied by the amount of the reinstated Limit of Liability of the Reinsurer divided by $5,000,000. The reinsurance premium so developed for each amount reinstated shall be in addition to the reinsurance premium set forth in the section entitled REINSURANCE PREMIUM." IT IS FURTHER AGREED that, as respects Terrorism Occurrences taking place at and after 12:01 A.M., January 1, 2007, EXHIBIT B to this Agreement is hereby renewed subject to all its terms, conditions and limitations, except as modified below, for a period of one year. Accordingly: I - The first paragraph of SECTION 2 - TERM is amended to read: "This Exhibit shall apply to new and renewal policies of the Company becoming effective at and after 12:01 A.M., January 1, 2007, and to policies of the Company in force at 12:01 A.M., January 1, 2007, with respect to claims and losses resulting from Terrorism Occurrences taking place at and after the aforesaid time and date, and prior to 12:01 A.M., January 1, 2008." GENERAL REINSURANCE CORPORATION II - SECTION 3 is amended to read:

AUTOMATIC REINSTATEMENT. The Limit of Liability of the Reinsurer with respect to each Occurrence shall be reduced by an amount equal to the amount of liability paid by the Reinsurer, but that part of the liability of the Reinsurer that is so reduced shall be automatically reinstated from the date of the Occurrence for which payment is made; however, the Limits of Liability of the Reinsurer under the Second and Third Excess Covers with respect to all Occurrences taking place during each Agreement Year shall not exceed the amounts amount set forth in the section entitled LIABILITY OF THE REINSURER. In consideration of this automatic reinstatement: (a) For each amount so reinstated in the First Excess Cover, there shall be no additional reinsurance premium; (b) For first $5,000,000 so reinstated in the Second and Third Excess CoversCover, there shall be no additional reinsurance premium; (c) For the next $5,000,000, so reinstated in the Second Excess Cover, the Company shall pay to the Reinsurer an additional reinsurance premium that shall be the product of 100% of the reinsurance premium set forth in sub-paragraph (b) of the section entitled REINSURANCE PREMIUM for the Agreement Year multiplied by the amount of the reinstated Limit of Liability of the Reinsurer divided by $5,000,000; (d) For the next $5,000,000, so reinstated in the Third Excess Cover, the Company shall pay to the Reinsurer an additional reinsurance premium that shall be the product of 100% of the reinsurance premium set forth in sub-paragraph (c) of the section entitled REINSURANCE PREMIUM for the Agreement Year multiplied by the amount of the reinstated Limit of Liability of the Reinsurer divided by $5,000,000. The reinsurance premium so developed for each amount reinstated shall be in addition to the reinsurance premium set forth in the section entitled REINSURANCE PREMIUM." IT IS FURTHER AGREED that, as respects Terrorism Occurrences taking place at and after 12:01 A.M., January 1, 20072004, EXHIBIT B to this Agreement is hereby renewed subject to all its terms, conditions and limitations, except as modified below, for a period of one year. Accordingly: GENERAL REINSURANCE CORPORATION A BERKSHIRE HATHAWAY COMPANY I - The Accordingly, the first paragraph of SECTION 2 - TERM is amended to read: "This Exhibit shall apply to new and renewal policies of the Company becoming effective at and after 12:01 A.M., January 1, 20072004, and to policies of the Company in force at 12:01 A.M., January 1, 20072004, with respect to claims and losses resulting from Terrorism Occurrences taking place at and after the aforesaid time and date, and prior to 12:01 A.M., January 1, 20082005." GENERAL REINSURANCE CORPORATION II - SECTION 3 6 is amended to read:

AUTOMATIC REINSTATEMENT. The Limit of Liability of the Reinsurer Reinsurers under each Exhibit of this Agreement with respect to each Occurrence loss occurrence shall be reduced by an amount equal to the amount of liability paid by the ReinsurerReinsurers, but that part of the liability of the Reinsurer Reinsurers that is so reduced shall be automatically reinstated from the date commencement of the Occurrence loss occurrence for which payment is made; however, the Limits Limit of Liability of the Reinsurer under the Second and Third Excess Covers Reinsurers with respect to all Occurrences taking place loss occurrences commencing during each the term of this Agreement Year shall not exceed the amounts amount set forth in the section entitled LIABILITY OF THE REINSURERREINSURERS of each Exhibit of this Agreement. In consideration of this automatic reinstatement: (a) For each amount so reinstated in the First Excess Cover, there shall be no additional reinsurance premium; (b) For first $5,000,000 so reinstated in the Second and Third Excess Covers, there shall be no additional reinsurance premium; (c) For the next $5,000,000, so reinstated in the Second Excess Cover, the Company shall pay to the Reinsurer Reinsurers for each amount reinstated an additional reinsurance premium that shall be the product of 100% of the reinsurance premium set forth in sub-paragraph (b) of the section entitled REINSURANCE PREMIUM for the Agreement Year of each Exhibit of this Agreement, multiplied by the amount of the reinstated Limit of Liability of the Reinsurer Reinsurers divided by $5,000,000; (d) For the next $5,000,000, so reinstated in the Third Excess Cover, the Company shall pay to the Reinsurer an additional reinsurance premium that shall be the product of 100% of the reinsurance premium set forth in sub-paragraph (c) of the section entitled REINSURANCE PREMIUM for the Agreement Year multiplied by the amount of the reinstated total Limit of Liability of the Reinsurer divided by $5,000,000Reinsurers for each loss occurrence irrespective of the time of the commencement of the loss occurrence. The Company shall pay such additional premium at the same time that the Reinsurers make each payment of ultimate net loss. If the Company requests any such payment of ultimate net loss before the actual reinsurance premium so developed for each amount reinstated is determined, the additional reinsurance premium shall be provisionally calculated on 100% of the deposit reinsurance premium stipulated in addition to each Exhibit of this Agreement. Such additional reinsurance premium shall be recalculated and. adjusted until both the reinsurance premium set forth in and the section entitled REINSURANCE PREMIUMultimate net loss are finally determined." IT IS FURTHER AGREED that, as respects Terrorism Occurrences taking place at and after 12:01 A.M., January 1, 2007, EXHIBIT B to this Agreement is hereby renewed subject to all its terms, conditions and limitations, except as modified below, for a period of one year. Accordingly: I - The first paragraph of SECTION 2 - TERM is amended to read: "This Exhibit shall apply to new and renewal policies of the Company becoming effective at and after 12:01 A.M., January 1, 2007, and to policies of the Company in force at 12:01 A.M., January 1, 2007, with respect to claims and losses resulting from Terrorism Occurrences taking place at and after the aforesaid time and date, and prior to 12:01 A.M., January 1, 2008." GENERAL REINSURANCE CORPORATION II - SECTION 3 is amended to read:

AUTOMATIC REINSTATEMENT. The Limit of Liability of the Reinsurer Reinsurers under each Exhibit with respect to each Occurrence loss event shall be reduced by an amount equal to the amount of liability paid by the ReinsurerReinsurers, but that part of the liability of the Reinsurer Reinsurers that is so reduced shall be automatically reinstated from the date commencement of the Occurrence loss event for which payment is made; however, the Limits Limit of Liability of the Reinsurer under the Second and Third Excess Covers Reinsurers with respect to all Occurrences taking place loss events commencing during each the term of this Agreement Year shall not exceed the amounts amount set forth in the section entitled LIABILITY OF THE REINSURERLIMIT AND RETENTION of each Exhibit. In consideration of this automatic reinstatement: (a) For each amount so reinstated in the First Excess Cover, there shall be no additional reinsurance premium; (b) For first $5,000,000 so reinstated in the Second and Third Excess Covers, there shall be no additional reinsurance premium; (c) For the next $5,000,000, so reinstated in the Second Excess Cover, the Company shall pay to the Reinsurer Reinsurers for each amount reinstated an additional reinsurance premium that shall be the product of 100% pro rata of the reinsurance premium set forth in sub-paragraph (b) of the section entitled REINSURANCE PREMIUM for of each Exhibit. The additional reinsurance premium shall be the Agreement Year product of the reinsurance premium set forth in the section entitled REINSURANCE PREMIUM of the applicable Exhibit, multiplied by the amount of the reinstated Limit of Liability of the Reinsurer Reinsurers divided by $5,000,000; (d) For the next $5,000,000, so reinstated in the Third Excess Cover, the Company shall pay to the Reinsurer an additional reinsurance premium that shall be the product of 100% of the reinsurance premium set forth in sub-paragraph (c) of the section entitled REINSURANCE PREMIUM for the Agreement Year multiplied by the amount of the reinstated total Limit of Liability of the Reinsurer divided by $5,000,000Reinsurers for each loss event irrespective of the time of the commencement of the loss event. The reinsurance premium so developed for each amount reinstated shall be in addition to the reinsurance premium set forth in the section entitled REINSURANCE PREMIUM." IT IS FURTHER AGREED that, as respects Terrorism Occurrences taking place at and after 12:01 A.M., January 1, 2007, EXHIBIT B to this Agreement is hereby renewed subject to all its terms, conditions and limitations, except as modified below, for a period of one year. Accordingly: I - The first paragraph of SECTION 2 - TERM is amended to read: "This Exhibit shall apply to new and renewal policies of the Company becoming effective at and after 12:01 A.M., January 1, 2007, and to policies of the Company in force at 12:01 A.M., January 1, 2007, with respect to claims and losses resulting from Terrorism Occurrences taking place at and after the aforesaid time and date, and prior to 12:01 A.M., January 1, 2008." GENERAL REINSURANCE CORPORATION II - SECTION 3 is amended to read:[LOGO]

AUTOMATIC REINSTATEMENT. The Limit of Liability of the Reinsurer with respect to each Occurrence Risk shall be reduced by an amount equal to the amount of liability paid by the Reinsurer, but that part of the liability of the Reinsurer that is so reduced shall be automatically reinstated from the date of the Loss Occurrence for which payment is made; however, the Limits of Liability of the Reinsurer under the Second and Third Excess Covers with respect to all Loss Occurrences taking place during each Agreement Year shall not exceed the amounts set forth in the section entitled LIABILITY OF THE REINSURER. In consideration of this automatic reinstatement: (a) For each amount so reinstated in the First and Second Excess CoverCovers, there shall be no additional reinsurance premium; (b) For first $5,000,000 so reinstated in the Second and Third Excess CoversCover, there shall be no additional reinsurance premium; (c) For the next $5,000,000, so reinstated in the Second Excess Cover, the Company shall pay to the Reinsurer an additional reinsurance premium that shall be the product of 100% of the reinsurance premium set forth in sub-paragraph (b) of the section entitled REINSURANCE PREMIUM for the Agreement Year multiplied by the amount of the reinstated Limit of Liability of the Reinsurer divided by $5,000,000; (d) For the next $5,000,000, so reinstated in the Third Excess Cover, the Company shall pay to the Reinsurer an additional reinsurance premium that shall be the product of 100% of the reinsurance premium set forth in sub-paragraph (c) of the section entitled REINSURANCE PREMIUM for the Agreement Year multiplied by the amount of the reinstated Limit of Liability of the Reinsurer divided by $5,000,000. The reinsurance premium so developed for each amount reinstated shall be in addition to the reinsurance premium set forth in the section entitled REINSURANCE PREMIUM." IT IS FURTHER AGREED that, as respects Terrorism Occurrences taking place at and after 12:01 A.M., January 1, 2007, EXHIBIT B to this Agreement is hereby renewed subject to all its terms, conditions and limitations, except as modified below, for a period of one year. Accordingly: I - The first paragraph of SECTION 2 - TERM is amended to read: "This Exhibit shall apply to new and renewal policies of the Company becoming effective at and after 12:01 A.M., January 1, 2007, and to policies of the Company in force at 12:01 A.M., January 1, 2007, with respect to claims and losses resulting from Terrorism Occurrences taking place at and after the aforesaid time and date, and prior to 12:01 A.M., January 1, 2008." GENERAL REINSURANCE CORPORATION II - SECTION 3 is amended to read:

AUTOMATIC REINSTATEMENT. The Limit of Liability of the Reinsurer with respect to each Occurrence Risk shall be reduced by an amount equal to the amount of liability paid by the Reinsurer, but that part of the liability of the Reinsurer that is so reduced shall be automatically reinstated from the date of the Occurrence for which payment is made; however, the Limits of Liability of the Reinsurer under the Second and Third Excess Covers with respect to all Occurrences taking place during each Agreement Year shall not exceed the amounts set forth in the section entitled LIABILITY OF THE REINSURER. In consideration of this automatic reinstatement: (a) For each amount so reinstated in the First Excess Cover, there shall be no additional reinsurance premium; (b) For first $5,000,000 so reinstated in the Second and Third Excess Covers, there shall be no additional reinsurance premium; (c) For the next $5,000,000, so reinstated in the Second Excess Cover, the Company shall pay to the Reinsurer an additional reinsurance premium that shall be the product of 100% of the reinsurance premium set forth in sub-paragraph (b) of the section entitled REINSURANCE PREMIUM for the Agreement Year multiplied by the amount of the reinstated Limit of Liability of the Reinsurer divided by $5,000,000; (d) For the next $5,000,000, so reinstated in the Third Excess Cover, the Company shall pay to the Reinsurer an additional reinsurance premium that shall be the product of 100% of the reinsurance premium set forth in sub-paragraph (c) of the section entitled REINSURANCE PREMIUM for the Agreement Year multiplied by the amount of the reinstated Limit of Liability of the Reinsurer divided by $5,000,000. The reinsurance premium so developed for each amount reinstated shall be in addition to the reinsurance premium set forth in the section entitled REINSURANCE PREMIUM." IT IS FURTHER AGREED that, as respects Terrorism Occurrences taking place at and after 12:01 A.M., January 1, 2007, EXHIBIT B to this Agreement is hereby renewed subject to all its terms, conditions and limitations, except as modified below, for a period of one year. Accordingly: I - The first paragraph of SECTION 2 - TERM is amended to read: "This Exhibit shall apply to new and renewal policies of the Company becoming effective at and after 12:01 A.M., January 1, 2007, and to policies of the Company in force at 12:01 A.M., January 1, 2007, with respect to claims and losses resulting from Terrorism Occurrences taking place at and after the aforesaid time and date, and prior to 12:01 A.M., January 1, 2008." GENERAL REINSURANCE CORPORATION II - SECTION 3 is amended to read:

AUTOMATIC REINSTATEMENT. The Limit of Liability of the Reinsurer Reinsurers under each Exhibit of this Agreement with respect to each Occurrence loss occurrence shall be reduced by an amount equal to the amount of liability paid by the ReinsurerReinsurers, but that part of the liability of the Reinsurer Reinsurers that is so reduced shall be automatically reinstated from the date commencement of the Occurrence loss occurrence for which payment is made; however, the Limits Limit of Liability of the Reinsurer under the Second and Third Excess Covers Reinsurers with respect to all Occurrences taking place loss occurrences commencing during each the term of this Agreement Year shall not exceed the amounts amount set forth in the section entitled LIABILITY OF THE REINSURERREINSURERS of each Exhibit of this Agreement. In consideration of this automatic reinstatement: (a) For each amount so reinstated in the First Excess Cover, there shall be no additional reinsurance premium; (b) For first $5,000,000 so reinstated in the Second and Third Excess Covers, there shall be no additional reinsurance premium; (c) For the next $5,000,000, so reinstated in the Second Excess Cover, the Company shall pay to the Reinsurer Reinsurers for each amount reinstated an additional reinsurance premium that shall be the product of 100% of the reinsurance premium set forth in sub-paragraph (b) of the section entitled REINSURANCE PREMIUM for the Agreement Year of each Exhibit of this Agreement, multiplied by the amount of the reinstated Limit of Liability of the Reinsurer Reinsurers divided by $5,000,000; (d) For the next $5,000,000, so reinstated in the Third Excess Cover, the Company shall pay to the Reinsurer an additional reinsurance premium that shall be the product total Limit of 100% of the reinsurance premium set forth in sub-paragraph (c) of the section entitled REINSURANCE PREMIUM for the Agreement Year multiplied by the amount of the reinstated Limit of Liability of the Reinsurer divided by $5,000,000Reinsurers for each loss occurrence irrespective of the time of the commencement of the loss occurrence. The Company shall pay such additional premium at the same time that the Reinsurers make each payment of ultimate net loss. If the Company requests any such payment of ultimate net loss before the actual reinsurance premium so developed for each amount reinstated is determined, the additional reinsurance premium shall be provisionally calculated on 100% of the deposit reinsurance premium stipulated in addition to the each Exhibit of this Agreement. Such additional reinsurance premium shall be recalculated and adjusted until both the reinsurance premium set forth in and the section entitled REINSURANCE PREMIUMultimate net loss are finally determined." IT IS FURTHER AGREED that, as respects Terrorism Occurrences taking place at and after 12:01 A.M., January 1, 2007, EXHIBIT B to this Agreement is hereby renewed subject to all its terms, conditions and limitations, except as modified below, for a period of one year. Accordingly: I - The first paragraph of SECTION 2 - TERM is amended to read: "This Exhibit shall apply to new and renewal policies of the Company becoming effective at and after 12:01 A.M., January 1, 2007, and to policies of the Company in force at 12:01 A.M., January 1, 2007, with respect to claims and losses resulting from Terrorism Occurrences taking place at and after the aforesaid time and date, and prior to 12:01 A.M., January 1, 2008." GENERAL REINSURANCE CORPORATION II - SECTION 3 is amended to read:

AUTOMATIC REINSTATEMENT. The Limit Limits of Liability of the Reinsurer with respect to each Occurrence Risk shall be reduced by an amount equal to the amount of liability paid by the Reinsurer, but that part of the liability of the Reinsurer that is so reduced shall be automatically reinstated from the date of the Occurrence for which payment is made; however, the Limits of Liability of the Reinsurer under the First, Second and Third Excess Covers with respect to all Risks in all Occurrences taking place during each Agreement Year shall not exceed the amounts set forth in the section entitled LIABILITY OF THE REINSURER. In consideration of this automatic reinstatement: (a) For each the first $[***]so reinstated in the First Excess Cover, the Company shall pay to the Reinsurer an additional reinsurance premium that shall be the product of [***]% of the reinsurance premium for such Excess Cover as set forth in the section entitled REINSURANCE PREMIUM for the Agreement Year multiplied by the amount of the reinstated Limit of Liability of the Reinsurer divided by $[***]; (b) For the next $[***]so reinstated in the First Excess Cover, there shall be no additional reinsurance premium; (b) For first $5,000,000 so reinstated in the Second and Third Excess Covers, there shall be no additional reinsurance premium; (c) For the next $5,000,000, each amount so reinstated in the Second Excess Cover, the Company shall pay to the Reinsurer an additional reinsurance premium that shall be the product of 100[***]% of the reinsurance premium for such Excess Cover as set forth in sub-paragraph (b) of the section entitled REINSURANCE PREMIUM for the Agreement Year multiplied by the amount of the reinstated Limit of Liability of the Reinsurer divided by $5,000,000[***]; (d) For the next $5,000,000, each amount so reinstated in the Third Excess Cover, the Company shall pay to the Reinsurer an additional reinsurance premium that shall be the product of 100[***]% of the reinsurance premium for such Excess Cover as set forth in sub-paragraph (c) of the section entitled REINSURANCE PREMIUM for the Agreement Year multiplied by the amount of the reinstated Limit of Liability of the Reinsurer divided by $5,000,000. The reinsurance premium so developed for each amount reinstated shall be in addition to the reinsurance premium set forth in the section entitled REINSURANCE PREMIUM[***]." IT IS FURTHER AGREED that, as respects Terrorism Occurrences taking place at and after 12:01 A.M., January 1, 2007, EXHIBIT B to this Agreement is hereby renewed subject to all its terms, conditions and limitations, except as modified below, for a period of one year. Accordingly: I - The first paragraph of SECTION 2 - TERM is amended to read: "This Exhibit shall apply to new and renewal policies of the Company becoming effective at and after 12:01 A.M., January 1, 2007, and to policies of the Company in force at 12:01 A.M., January 1, 2007, with respect to claims and losses resulting from Terrorism Occurrences taking place at and after the aforesaid time and date, and prior to 12:01 A.M., January 1, 2008." GENERAL REINSURANCE CORPORATION II - SECTION 3 is amended to read: