Common use of SALVAGE AND SUBROGATION Clause in Contracts

SALVAGE AND SUBROGATION. In the event of any salvage and/or subrogation received in respect of claims and settlements under the policies relating to the Subject Business, the salvage and/or subrogation shall be coordinated under this and other applicable reinsurance of the Subject Business by reference to the order of Company’s reinsurance cessions under the definition of Article V H, Retained Reserves. First, the salvage and/or subrogation shall be paid with respect to the reinsurance contract or contracts which are obligated to pay Company first on the Subject Business for amounts in excess of that reinsurer’s held reserves as of June 30, 2006 (the “Held Reserves”). Once such amounts paid by such reinsurers in excess of their respective Held Reserves have been fully reimbursed, any additional subrogation and/or salvage shall then be applied to the amount of each such reinsurer’s Held Reserves, starting with the reinsurer of the Subject Business whose obligation to pay Company occurs last and proceeding to the reinsurer so obligated to pay first. If two or more reinsurers have obligations to pay Company on the Subject Business which occur simultaneously, the subrogation and/or salvage shall be divided between them in proportion to the amount each of them is obligated to pay as a part of the amount of their combined obligation to pay. The Company hereby agrees to enforce such subrogation rights as it may obtain by virtue of payments made under the policies relating to the Subject Business, but in case it shall refuse or neglect to do so, Reinsurer is hereby authorized and empowered to bring any appropriate action to enforce such rights. All subrogation recoveries, other recoveries, salvage or payments made subsequent to the payment of claims hereunder shall be applied as if made before such payment of claims and shall be made as soon as practicable.

SALVAGE AND SUBROGATION. In the event (LM-01800-2008.08.15-A) A. The Subscribing Reinsurer shall be credited with its share of any salvage and/or subrogation received in respect of claims and settlements under this Contract, less its share of recovery expense. Unless the policies relating Company agrees to waive such rights in the settlement of a disputed claim, or the Company and Subscribing Reinsurer agree to the Subject Businesscontrary, the Company shall enforce the right to salvage and/or subrogation and shall be coordinated under this and other applicable reinsurance prosecute all claims arising out of such right. Should the Subject Business by reference to the order of Company’s reinsurance cessions under the definition of Article V H, Retained Reserves. First, the salvage and/or subrogation shall be paid with respect to the reinsurance contract or contracts which are obligated to pay Company first on the Subject Business for amounts in excess of that reinsurer’s held reserves as of June 30, 2006 (the “Held Reserves”). Once such amounts paid by such reinsurers in excess of their respective Held Reserves have been fully reimbursed, any additional subrogation and/or salvage shall then be applied to the amount of each such reinsurer’s Held Reserves, starting with the reinsurer of the Subject Business whose obligation to pay Company occurs last and proceeding to the reinsurer so obligated to pay first. If two or more reinsurers have obligations to pay Company on the Subject Business which occur simultaneously, the subrogation and/or salvage shall be divided between them in proportion to the amount each of them is obligated to pay as a part of the amount of their combined obligation to pay. The Company hereby agrees to enforce such subrogation rights as it may obtain by virtue of payments made under the policies relating to the Subject Business, but in case it shall refuse or neglect to do soenforce this right, the Subscribing Reinsurer is hereby empowered and authorized and empowered to bring any institute appropriate action in the name of the Company. B. Amounts recovered from salvage and/or subrogation and the expense of any salvage and/or subrogation proceedings brought by the Company or the Subscribing Reinsurer to enforce such rightsrights shall be apportioned between the Company and the Subscribing Reinsurer in the ratio of their respective interests in the total salvage and/or subrogation recovery, and shall be in addition to the limits hereon. In the event there is a failure to obtain a salvage and/or subrogation recovery, the expense of the proceedings shall be apportioned between the Company and the Subscribing Reinsurer in the ratio of their respective interests in the total loss. C. All salvage and/or subrogation recoveriesrecoveries obtained by either party, other recoveries, salvage or subsequent to payments made subsequent to by the payment of claims hereunder Subscribing Reinsurer under this Contract, shall be applied as if made before such payment of claims obtained prior to said payments and all necessary adjustments shall be made between the Company and the Subscribing Reinsurer as soon as practicablepracticable after said salvage and/or subrogation recovery is obtained. D. The Company shall have the right, before the happening of the loss, to waive its right of subrogation as to that loss. Effective: January 1, 2010 Page 19 of 42 Workers’ Compensation Excess of Loss Reinsurance Addendum 3 No. 0100200-SUM09

SALVAGE AND SUBROGATION. In the event (LM-01800-2008.08.15-A) A. The Subscribing Reinsurer shall be credited with its share of any salvage and/or subrogation received in respect of claims and settlements under this Contract, less its share of recovery expense. Unless the policies relating Company agrees to waive such rights in the settlement of a disputed claim, or the Company and Subscribing Reinsurer agree to the Subject Businesscontrary, the Company shall enforce the right to salvage and/or subrogation and shall be coordinated under this and other applicable reinsurance prosecute all claims arising out of such right. Should the Subject Business by reference to the order of Company’s reinsurance cessions under the definition of Article V H, Retained Reserves. First, the salvage and/or subrogation shall be paid with respect to the reinsurance contract or contracts which are obligated to pay Company first on the Subject Business for amounts in excess of that reinsurer’s held reserves as of June 30, 2006 (the “Held Reserves”). Once such amounts paid by such reinsurers in excess of their respective Held Reserves have been fully reimbursed, any additional subrogation and/or salvage shall then be applied to the amount of each such reinsurer’s Held Reserves, starting with the reinsurer of the Subject Business whose obligation to pay Company occurs last and proceeding to the reinsurer so obligated to pay first. If two or more reinsurers have obligations to pay Company on the Subject Business which occur simultaneously, the subrogation and/or salvage shall be divided between them in proportion to the amount each of them is obligated to pay as a part of the amount of their combined obligation to pay. The Company hereby agrees to enforce such subrogation rights as it may obtain by virtue of payments made under the policies relating to the Subject Business, but in case it shall refuse or neglect to do soenforce this right, the Subscribing Reinsurer is hereby empowered and authorized and empowered to bring any institute appropriate action in the name of the Company. B. Amounts recovered from salvage and/or subrogation and the expense of any salvage and/or subrogation proceedings brought by the Company or the Subscribing Reinsurer to enforce such rightsrights shall be apportioned between the Company and the Subscribing Reinsurer in the ratio of their respective interests in the total salvage and/or subrogation recovery, and shall be in addition to the limits hereon. In the event there is a failure to obtain a salvage and/or subrogation recovery, the Catastrophe Excess of Loss Reinsurance Addendum 4 No. 0100300-SUM09 expense of the proceedings shall be apportioned between the Company and the Subscribing Reinsurer in the ratio of their respective interests in the total loss. C. All salvage and/or subrogation recoveriesrecoveries obtained by either party, other recoveries, salvage or subsequent to payments made subsequent to by the payment of claims hereunder Subscribing Reinsurer under this Contract, shall be applied as if made before such payment of claims obtained prior to said payments and all necessary adjustments shall be made between the Company and the Subscribing Reinsurer as soon as practicablepracticable after said salvage and/or subrogation recovery is obtained. D. The Company shall have the right, before the happening of the loss, to waive its right of subrogation as to that loss.

SALVAGE AND SUBROGATION. In the event (LM-01800-2006.09.12-A) A. The Subscribing Reinsurer shall be credited with its share of any salvage and/or subrogation received in respect of claims and settlements under this Contract, less its share of recovery expense. Unless the policies relating Company and the Subscribing Reinsurer agree to waive such rights in the settlement of a disputed claim, or the Company and the Subscribing Reinsurer agree to the Subject Businesscontrary, the Company enforces the right to salvage and/or subrogation and shall be coordinated under this and other applicable reinsurance prosecute all claims arising out of such right. Should the Subject Business by reference to the order of Company’s reinsurance cessions under the definition of Article V H, Retained Reserves. First, the salvage and/or subrogation shall be paid with respect to the reinsurance contract or contracts which are obligated to pay Company first on the Subject Business for amounts in excess of that reinsurer’s held reserves as of June 30, 2006 (the “Held Reserves”). Once such amounts paid by such reinsurers in excess of their respective Held Reserves have been fully reimbursed, any additional subrogation and/or salvage shall then be applied to the amount of each such reinsurer’s Held Reserves, starting with the reinsurer of the Subject Business whose obligation to pay Company occurs last and proceeding to the reinsurer so obligated to pay first. If two or more reinsurers have obligations to pay Company on the Subject Business which occur simultaneously, the subrogation and/or salvage shall be divided between them in proportion to the amount each of them is obligated to pay as a part of the amount of their combined obligation to pay. The Company hereby agrees to enforce such subrogation rights as it may obtain by virtue of payments made under the policies relating to the Subject Business, but in case it shall refuse or neglect to do soenforce this right, the Subscribing Reinsurer is hereby empowered and authorized and empowered to bring any institute appropriate action in the name of the Company. B. Amounts recovered from salvage and/or subrogation and the expense of any salvage and/or subrogation proceedings brought by the Company or the Subscribing Reinsurer to enforce such rightsrights shall be apportioned between the Company and the Subscribing Reinsurer in the ratio of their respective interests in the total salvage and/or subrogation recovery, and shall be in addition to the limits hereon. In the event there is a failure to obtain a salvage and/or subrogation Reinsurance Addendum 1 No. 0100200-SUM08 recovery, the expense of the proceedings shall be apportioned between the Company and the Subscribing Reinsurer in the ratio of their respective interests in the total loss. C. All salvage and/or subrogation recoveriesrecoveries obtained by either party, other recoveries, salvage or subsequent to payments made subsequent to by the payment of claims hereunder Subscribing Reinsurer under this Contract, shall be applied as if made before such payment of claims obtained prior to said payments and all necessary adjustments shall be made between the Company and the Subscribing Reinsurer as soon as practicablepracticable after said salvage and/or subrogation recovery is obtained. D. The Company shall have the right, before the happening of the loss, to waive its right of subrogation as to that loss.

SALVAGE AND SUBROGATION. In the event (LM-01800-2008.08.15-A) (AM) A. The Subscribing Reinsurer shall be credited with its share of any salvage and/or subrogation received in respect of claims and settlements under this Contract, less its share of recovery expense. Unless the policies relating Company agrees to waive such rights in the settlement of a disputed claim, or the Company and Subscribing Reinsurer agree to the Subject Businesscontrary, the Company and the Legal Entities shall enforce the right to salvage and/or subrogation and shall be coordinated under this and other applicable reinsurance prosecute all claims arising out of such right. Should the Subject Business by reference to Company or the order of Company’s reinsurance cessions under the definition of Article V H, Retained Reserves. First, the salvage and/or subrogation shall be paid with respect to the reinsurance contract or contracts which are obligated to pay Company first on the Subject Business for amounts in excess of that reinsurer’s held reserves as of June 30, 2006 (the “Held Reserves”). Once such amounts paid by such reinsurers in excess of their respective Held Reserves have been fully reimbursed, any additional subrogation and/or salvage shall then be applied to the amount of each such reinsurer’s Held Reserves, starting with the reinsurer of the Subject Business whose obligation to pay Company occurs last and proceeding to the reinsurer so obligated to pay first. If two or more reinsurers have obligations to pay Company on the Subject Business which occur simultaneously, the subrogation and/or salvage shall be divided between them in proportion to the amount each of them is obligated to pay as a part of the amount of their combined obligation to pay. The Company hereby agrees to enforce such subrogation rights as it may obtain by virtue of payments made under the policies relating to the Subject Business, but in case it shall Legal Entities refuse or neglect to do soenforce this right, the Subscribing Reinsurer is hereby empowered and authorized and empowered to bring any institute appropriate action in the name of the Company or the Legal Entities, as applicable. Effective: January 1, 2009 Page 10 of 44 2009 Agency Markets Workers’ Compensation Catastrophe Reinsurance Contract ▇. ▇▇▇▇▇▇▇ recovered from salvage and/or subrogation and the expense of any salvage and/or subrogation proceedings brought by the Company or the Subscribing Reinsurer to enforce such rightsrights shall be apportioned between the Company and the Subscribing Reinsurer in the ratio of their respective interests in the total salvage and/or subrogation recovery, and shall be in addition to the limits hereon. In the event there is a failure to obtain a salvage and/or subrogation recovery, the expense of the proceedings shall be apportioned between the Company and the Subscribing Reinsurer in the ratio of their respective interests in the total loss. C. All salvage and/or subrogation recoveriesrecoveries obtained by either party, other recoveries, salvage or subsequent to payments made subsequent to by the payment of claims hereunder Subscribing Reinsurer under this Contract, shall be applied as if made before such payment of claims obtained prior to said payments and all necessary adjustments shall be made between the Company and the Subscribing Reinsurer as soon as practicablepracticable after said salvage and/or subrogation recovery is obtained. D. The Company or a Legal Entity shall have the right, before the happening of the loss, to waive its right of subrogation as to that loss.

SALVAGE AND SUBROGATION. In the event (LM-01800-2008.08.15-A) (AM) A. The Subscribing Reinsurer shall be credited with its share of any salvage and/or subrogation received in respect of claims and settlements under this Contract, less its share of recovery expense. Unless the policies relating Company agrees to waive such rights in the settlement of a disputed claim, or the Company and Subscribing Reinsurer agree to the Subject Businesscontrary, the Company and the Legal Entities shall enforce the right to salvage and/or subrogation and shall be coordinated under this and other applicable reinsurance prosecute all claims arising out of such right. Should the Subject Business by reference to Company or the order of Company’s reinsurance cessions under the definition of Article V H, Retained Reserves. First, the salvage and/or subrogation shall be paid with respect to the reinsurance contract or contracts which are obligated to pay Company first on the Subject Business for amounts in excess of that reinsurer’s held reserves as of June 30, 2006 (the “Held Reserves”). Once such amounts paid by such reinsurers in excess of their respective Held Reserves have been fully reimbursed, any additional subrogation and/or salvage shall then be applied to the amount of each such reinsurer’s Held Reserves, starting with the reinsurer of the Subject Business whose obligation to pay Company occurs last and proceeding to the reinsurer so obligated to pay first. If two or more reinsurers have obligations to pay Company on the Subject Business which occur simultaneously, the subrogation and/or salvage shall be divided between them in proportion to the amount each of them is obligated to pay as a part of the amount of their combined obligation to pay. The Company hereby agrees to enforce such subrogation rights as it may obtain by virtue of payments made under the policies relating to the Subject Business, but in case it shall Legal Entities refuse or neglect to do soenforce this right, the Subscribing Reinsurer is hereby empowered and authorized and empowered to bring any institute appropriate action in the name of the Company or the Legal Entities, as applicable. Effective: January 1, 2010 Page 10 of 37 2010 Agency Markets Workers’ Compensation Catastrophe Reinsurance Contract No. 2010300 ▇. ▇▇▇▇▇▇▇ recovered from salvage and/or subrogation and the expense of any salvage and/or subrogation proceedings brought by the Company or the Subscribing Reinsurer to enforce such rightsrights shall be apportioned between the Company and the Subscribing Reinsurer in the ratio of their respective interests in the total salvage and/or subrogation recovery, and shall be in addition to the limits hereon. In the event there is a failure to obtain a salvage and/or subrogation recovery, the expense of the proceedings shall be apportioned between the Company and the Subscribing Reinsurer in the ratio of their respective interests in the total loss. C. All salvage and/or subrogation recoveriesrecoveries obtained by either party, other recoveries, salvage or subsequent to payments made subsequent to by the payment of claims hereunder Subscribing Reinsurer under this Contract, shall be applied as if made before such payment of claims obtained prior to said payments and all necessary adjustments shall be made between the Company and the Subscribing Reinsurer as soon as practicablepracticable after said salvage and/or subrogation recovery is obtained. D. The Company or a Legal Entity shall have the right, before the happening of the loss, to waive its right of subrogation as to that loss.

SALVAGE AND SUBROGATION. In the event (LM-01800-2006.09.12-A) A. The Subscribing Reinsurer shall be credited with its share of any salvage and/or subrogation received in respect of claims and settlements under this Contract, less its share of recovery expense. Unless the policies relating Company agrees to waive such rights in the settlement of a disputed claim, or the Company and the Subscribing Reinsurer agree to the Subject Businesscontrary, the Company and the Legal Entities shall enforce the right to salvage and/or subrogation and shall prosecute all claims arising out of such right. Should the Company or the Legal Entities refuse or neglect to enforce this right, the Subscribing Reinsurer is hereby empowered and authorized to institute appropriate action in the name of the Company or the Legal Entities, as applicable. B. Amounts recovered from salvage and/or subrogation shall always be coordinated under this used to reimburse the excess the Subscribing Reinsurer (and other applicable reinsurance the Company, should it carry a portion of excess coverage net) in the Subject Business by reference to the reverse order of Company’s reinsurance cessions under their participation in the definition of Article V H, Retained Reservesloss before being used in any way to reimburse the Company or a Legal Entity for its primary loss. FirstIf the amount recovered exceeds the recovery expense, the salvage and/or subrogation recovery expense shall be paid with respect borne by each party in proportion to its benefit from the reinsurance contract or contracts which are obligated to pay Company first on Effective: January 1, 2008 2008 Wausau Property per Risk Excess Contract recovery. If the Subject Business for amounts in excess of that reinsurer’s held reserves as of June 30recovery expense exceeds the amount recovered, 2006 the amount recovered (the “Held Reserves”). Once such amounts paid by such reinsurers in excess of their respective Held Reserves have been fully reimbursed, any additional subrogation and/or salvage if any) shall then be applied to the amount reimbursement of each such reinsurer’s Held Reservesrecovery expense and the remaining expense, starting with the reinsurer of the Subject Business whose obligation to pay Company occurs last and proceeding as well as any originally incurred loss expense, shall be added to the reinsurer so obligated to pay firstUltimate Net Loss. If two or more reinsurers have obligations to pay Company on the Subject Business which occur simultaneouslyno amount is recovered from salvage and/or subrogation, the subrogation and/or salvage expense incurred in attempting such recovery shall be divided between them in proportion deemed loss expense and shall be added to the amount each of them is obligated Ultimate Net Loss. C. All salvage and/or subrogation recoveries obtained by either party, subsequent to pay as a part of the amount of their combined obligation to pay. The Company hereby agrees to enforce such subrogation rights as it may obtain by virtue of payments made by the Subscribing Reinsurer under the policies relating to the Subject Businessthis Contract, but in case it shall refuse or neglect to do so, Reinsurer is hereby authorized and empowered to bring any appropriate action to enforce such rights. All subrogation recoveries, other recoveries, salvage or payments made subsequent to the payment of claims hereunder shall be applied as if made before such payment of claims obtained prior to said payments and all necessary adjustments shall be made between the Company and the Subscribing Reinsurer as soon as practicablepracticable after said salvage and/or subrogation recovery is obtained. D. The Company or a Legal Entity shall have the right, before the happening of the loss, to waive its right of subrogation as to that loss.

SALVAGE AND SUBROGATION. In the event (LM-01800-2008.08.15-A) (AM) A. The Subscribing Reinsurer shall be credited with its share of any salvage and/or subrogation received in respect of claims and settlements under this Contract, less its share of recovery expense. Unless the policies relating Company agrees to waive such rights in the settlement of a disputed claim, or the Company and Subscribing Reinsurer agree to the Subject Businesscontrary, the Company and the Legal Entities shall enforce the right to salvage and/or subrogation and shall be coordinated under this and other applicable reinsurance prosecute all claims arising out of such right. Should the Subject Business by reference to Company or the order of Company’s reinsurance cessions under the definition of Article V H, Retained Reserves. First, the salvage and/or subrogation shall be paid with respect to the reinsurance contract or contracts which are obligated to pay Company first on the Subject Business for amounts in excess of that reinsurer’s held reserves as of June 30, 2006 (the “Held Reserves”). Once such amounts paid by such reinsurers in excess of their respective Held Reserves have been fully reimbursed, any additional subrogation and/or salvage shall then be applied to the amount of each such reinsurer’s Held Reserves, starting with the reinsurer of the Subject Business whose obligation to pay Company occurs last and proceeding to the reinsurer so obligated to pay first. If two or more reinsurers have obligations to pay Company on the Subject Business which occur simultaneously, the subrogation and/or salvage shall be divided between them in proportion to the amount each of them is obligated to pay as a part of the amount of their combined obligation to pay. The Company hereby agrees to enforce such subrogation rights as it may obtain by virtue of payments made under the policies relating to the Subject Business, but in case it shall Legal Entities refuse or neglect to do soenforce this right, the Subscribing Reinsurer is hereby empowered and authorized and empowered to bring any institute appropriate action in the name of the Company or the Legal Entities, as applicable. Effective: January 1, 2010 Page 10 of 37 2010 Agency Markets Workers’ Compensation Catastrophe Reinsurance Contract No. 2010300 B. Amounts recovered from salvage and/or subrogation and the expense of any salvage and/or subrogation proceedings brought by the Company or the Subscribing Reinsurer to enforce such rightsrights shall be apportioned between the Company and the Subscribing Reinsurer in the ratio of their respective interests in the total salvage and/or subrogation recovery, and shall be in addition to the limits hereon. In the event there is a failure to obtain a salvage and/or subrogation recovery, the expense of the proceedings shall be apportioned between the Company and the Subscribing Reinsurer in the ratio of their respective interests in the total loss. C. All salvage and/or subrogation recoveriesrecoveries obtained by either party, other recoveries, salvage or subsequent to payments made subsequent to by the payment of claims hereunder Subscribing Reinsurer under this Contract, shall be applied as if made before such payment of claims obtained prior to said payments and all necessary adjustments shall be made between the Company and the Subscribing Reinsurer as soon as practicablepracticable after said salvage and/or subrogation recovery is obtained. D. The Company or a Legal Entity shall have the right, before the happening of the loss, to waive its right of subrogation as to that loss.

SALVAGE AND SUBROGATION. In the event (Lm-01800-2008.08.15-A) (AM) A. The Subscribing Reinsurer shall be credited with its share of any salvage and/or subrogation received in respect of claims and settlements under this Contract, less its share of recovery expense. Unless the policies relating Company agrees to waive such rights in the settlement of a disputed claim, or the Company and Subscribing Reinsurer agree to the Subject Businesscontrary, the Company and the Legal Entities shall enforce the right to salvage and/or subrogation and shall be coordinated under this and other applicable reinsurance prosecute all claims arising out of such right. Should the Subject Business by reference to Company or the order of Company’s reinsurance cessions under the definition of Article V H, Retained Reserves. First, the salvage and/or subrogation shall be paid with respect to the reinsurance contract or contracts which are obligated to pay Company first on the Subject Business for amounts in excess of that reinsurer’s held reserves as of June 30, 2006 (the “Held Reserves”). Once such amounts paid by such reinsurers in excess of their respective Held Reserves have been fully reimbursed, any additional subrogation and/or salvage shall then be applied to the amount of each such reinsurer’s Held Reserves, starting with the reinsurer of the Subject Business whose obligation to pay Company occurs last and proceeding to the reinsurer so obligated to pay first. If two or more reinsurers have obligations to pay Company on the Subject Business which occur simultaneously, the subrogation and/or salvage shall be divided between them in proportion to the amount each of them is obligated to pay as a part of the amount of their combined obligation to pay. The Company hereby agrees to enforce such subrogation rights as it may obtain by virtue of payments made under the policies relating to the Subject Business, but in case it shall Legal Entities refuse or neglect to do soenforce this right, the Subscribing Reinsurer is hereby empowered and authorized and empowered to bring any institute appropriate action in the name of the Company or the Legal Entities, as applicable. Effective: January 1, 2010 2010 Agency Markets Workers’ Compensation Catastrophe Reinsurance Contract No. 2010300 ▇. ▇▇▇▇▇▇▇ recovered from salvage and/or subrogation and the expense of any salvage and/or subrogation proceedings brought by the Company or the Subscribing Reinsurer to enforce such rightsrights shall be apportioned between the Company and the Subscribing Reinsurer in the ratio of their respective interests in the total salvage and/or subrogation recovery, and shall be in addition to the limits hereon. In the event there is a failure to obtain a salvage and/or subrogation recovery, the expense of the proceedings shall be apportioned between the Company and the Subscribing Reinsurer in the ratio of their respective interests in the total loss. C. All salvage and/or subrogation recoveriesrecoveries obtained by either party, other recoveries, salvage or subsequent to payments made subsequent to by the payment of claims hereunder Subscribing Reinsurer under this Contract, shall be applied as if made before such payment of claims obtained prior to said payments and all necessary adjustments shall be made between the Company and the Subscribing Reinsurer as soon as practicablepracticable after said salvage and/or subrogation recovery is obtained. D. The Company or a Legal Entity shall have the right, before the happening of the loss, to waive its right of subrogation as to that loss.