ENDORSEMENT
#1
Property Excess of Loss Reinsurance Binding Agreement
between
Meridian Insurance Company
of Indianapolis, Indiana
and
NAC Reinsurance Corporation
New York, NY
Article 5, entitled "TERRITORY" is amended to include the state
of Iowa and Pennsylvania effective January 1, 1996.
Accepted by:
▇▇▇▇ ▇. ▇▇▇▇▇▇
Meridian Insurance
Date:
▇▇▇▇▇▇ ▇▇▇▇▇▇
NAC Resinsurance Corporation
Date:
Property Excess of Loss Reinsurance Binding Agreement
between
Meridian Insurance
of Indianapolis, Indiana
(both hereinafter referred to as the "COMPANY")
and
NAC Reinsurance Corporation
New York, NY
(hereinafter referred to as the "REINSURER")
ARTICLE 1
PARTIES TO THE AGREEMENT
This Agreement is solely between the Company and the Reinsurer.
When more than one Company is named as a party to this Agreement,
the first Company named shall be the agent of the other companies
as to all matters pertaining to this Agreement. Performance of
the obligations of each party under this Agreement shall be
rendered solely to the other party. In no instance shall any
insured of the Company, and claimant against an insured of the
Company, or any other third party have any rights under this
Agreement.
The rights and obligations of the parties to this Agreement shall
not be affected by the termination of this Agreement and all
necessary transactions relating to this Agreement will continue
in accordance with the terms and conditions stipulated herein
until all obligations of either party to the other are fully
concluded.
ARTICLE 2
TERMS AND CANCELLATION
Anything contained herein to the contrary notwithstanding,
coverage is continuous for all new and renewal policies attaching
from 12:01 a.m. Central Daylight Time, June 15, 1995, until
canceled by either party at any time with 90 days prior written
notice by certified mail.
In the event this agreement is terminated by either party, the
Reinsurer shall be liable for all original policies or portions
thereof in force as of the date of termination up to the natural
expiration or prior termination date of said policies, plus odd
time, but not to exceed eighteen months in total.
ARTICLE 3
BUSINESS COVERED
By this Agreement and subject to the terms and conditions herein
contained, the Reinsurer agrees to indemnify the Company in
respect to the net excess liability stipulated in this Agreement
which may accrue to the Company as a result of each loss
occurrence during the term of this Agreement under any and all
written binders, policies, or contracts of insurance issued by
the Company and classified by the Company as Commercial Property
business, including Garage Keepers Legal Liability, in accordance
with the Meridian Commercial Lines Underwriting Guide (CLUG).
Binding authority for risks ceded hereunder is granted to the
Company subject to all terms and conditions herein. Any changes
to the terms and conditions of this Agreement must be made by
endorsement to the Agreement and countersigned by a duly
authorized representative of the Reinsurer.
ARTICLE 4
PERILS COVERED
The policies ceded to this Agreement are reinsured for All Risks
of physical loss including Earthquake, excluding Flood, covering
Property Damage and Time Element in accordance with the terms of
the Company's policy and this Agreement for single amount subject
risks individually ceded to the Agreement. All Risks, including
Flood and Earthquake coverage, are provided for those risks
classified as Inland Marine.
Risks located in ISO Earthquake Zones 1 and 2 are excluded for
the peril of Earthquake.
ARTICLE 5
TERRITORY
This agreement shall apply to policies covering risks located in
Illinois, Indiana, Kentucky, Michigan, Ohio, Wisconsin, and
Tennessee in accordance with the Company's regulatory filing.
The Company shall notify the Reinsurer in advance of any
regulatory filing to insure risks in additional states, and
subject to the Reinsurer's approval, the territory clause of this
Agreement will be amended.
ARTICLE 6
LIMIT OF LIABILITY OF THE REINSURER
Reinsurance Accepted for Protected Risks defined as Meridian CLUG
Classifications 1, 2, 3, and 4, in ISO Protection Classes 1
through 8 shall be limits up to two times the Company's maximum
net and treaty retention as outlined in the Commercial Lines
Divisional Authority Level section of the CLUG. Reinsurance
limits shall be subject to a maximum limit of $6,000,000 any one
risk.
Reinsurance Accepted for Unprotected Risks defined as Meridian
CLUG Classifications 1, 2, 3, and 4 located in ISO Protection
Classes 9 and 10 shall be limits up to three times the Company's
maximum net and treaty retention as outlined in the Commercial
Lines Divisional Authority Level section of the CLUG.
Reinsurance limits shall be subject to a maximum limit of
$3,750,000 for any one risk. These reinsurance limits are
subject to a $10,000,000 limitation in any one occurrence.
Garage Keepers Legal Liability is included with a maximum
sublimit of $500,00 to be written by Meridian.
ARTICLE 7
BINDING AUTHORITY
Authority to bind the Reinsurer is granted to all Meridian
underwriters above the Level Two underwriting designation.
ARTICLE 8
TOTAL INSURED VALUE LIMITATION
Total Insured Values for any one risk ceded to the agreement
shall not exceed $10,000,000 for Protected Risks and $5,000,000
for Unprotected Risks. Reinsurance rates for this agreement are
designed to reinsurer excess of the company's net and treaty
retention up to 100% of the total risk values. Risks which
require additional limits should be submitted to the Reinsurer
for Special Acceptance or for individual risk certificate
coverage.
The Agreement includes only those accounts insured 100% by
Meridian Insurance. Any policy which otherwise satisfies the
terms and conditions of this agreement must be cleared with the
Reinsurer prior to binding if the Company participates jointly
with any other insurer.
ARTICLE 9
RATES
Reinsurance Premium for individual risks ceded to this agreement
shall be calculated in accordance with the schedule of
Reinsurance rates below which shall be applied to the Company's
100% gross location premium for each risk. Reinsurance rates for
Protected and Unprotected Risks are as follows:
PROTECTED RISKS
PC 1 - 8
NET AND TREATY RETENTION AS NET REINSURANCE RATE
PERCENTAGE OF TOTAL LOCATION VALUES
33% - 39% 23.5%
40% - 49% 20.2%
50% - 59% 16.1%
60% - 69% 12.0%
70% - 79% 8.2%
80% - 89% 4.8%
90% - 99% 2.5%
UNPROTECTED RISKS
PC9 and 10
NET AND TREATY RETENTION AS NET REINSURANCE RATE
PERCENTAGE OF TOTAL LOCATION VALUES
25% - 34% 42.5%
35% - 44% 30.5%
45% - 54% 26.1%
55% - 64% 23.7%
65% - 74% 16.8%
75% - 84% 12.5%
85% - 94% 7.0%
95% - 99% 2.9%
ARTICLE 10
RIGHT OF REJECTION
The Reinsurer may reject any individual cession and shall so
notify the Company in writing of its declination within 15
working days of receipt of Bordereau. The Company shall replace
the reinsurance promptly, but within a period not to exceed one
hundred twenty (120) days after receipt by the Company of the
notice of declination from the Reinsurer.
ARTICLE 11
REPORTING AND PAYMENT PROCEDURES
Risk Summary Sheets for each risk and a monthly Bordereaux of all
risks ceded shall be submitted to the Reinsurer within 20 working
days after the last day of each month. Any premium amounts due
the Reinsurer shall be paid with the Bordereaux.
Risk Summary Sheets for each insured shall include the following
information:
1. Total Insured Values
2. Construction
3. CLUG Classification
4. Protection Class
5. 100% of Meridian's Gross Premium for the Risk
6. Net Resinsurance Rate
7. Net Reinsurance Premium
Bordereaux for all risks ceded during the preceding month shall
list the following information:
1. Named Insured
2. Reinsurance Premium
3. Reinsurance Period
4. Policy Number
ARTICLE 12
PROFIT COMMISSION
The Reinsurer shall pay the Company a profit commission equal to
25% of the net profit, if any, accruing to the Reinsurer during
the adjustment period, subject to a minimum reinsurance premium
of $350,000 during the 24-month adjustment period. The
Reinsurer's net profit during the adjustment period shall be
calculated in accordance with the following formula, it being
understood that a positive balance equals net profit and a
negative balance equals net loss:
1. Earned reinsurance premium for the adjustment period; less
2. Expenses incurred by the Reinsurer at 15% of earned
reinsurance premium for the adjustment period; less
3. Losses incurred for the adjustment period.
With respect to the calculation and payment of profit commission,
the following interpretations and reporting terms and conditions
shall apply:
1. Adjustment Period
"Adjustment period" as used herein shall be defined as the 24
months following inception, and as each 24-month period
thereafter, while this agreement remains in effect.
2. Statement of Profit Commission
Within 45 days following 6 months after the adjustment period,
the Company shall calculate and render an initial statement of
the Reinsurer's net profit for the entire adjustment period.
Within 45 days after the end of the 12-month period
thereafter, a revised statement shall be rendered by the
Company to the Reinsurer to reflect any changes in the
original statement. Any return profit commission shown to be
due the Reinsurer shall be paid by the Company with the
revised statement.
Any profit commission shown to be due the Company upon receipt
of either the initial statement or the revised statement shall
be paid by the Reinsurer as promptly as possible after the
receipt and verification of the Company's statement.
3. Short-term Cancellation
If this Agreement is canceled at any time prior to the
expiration of the adjustment period, no profit commission will
be due the Company.
4. Losses Incurred
"Losses incurred" as used herein shall mean ceded losses and
loss adjustment expenses paid as of the effective date of
calculation, plus the ceded reserves for losses and loss
adjustment expenses outstanding as of the same date.
ARTICLE 13
LOSS NOTIFICATION, NET LOSS, LOSS ADJUSTMENT EXPENSES AND
RECOVERIES
Loss Notification
The Company shall give prompt written notice to the Reinsurer of
any claim or loss which in the sound judgment of the Company may
result in a net loss to the Reinsurer.
While the Reinsurer does not have the duty to investigate or
defend claims or suits, it shall nevertheless have the right and
the opportunity, with the full cooperation of the Company, to
associate with the Company at its own expense in the defense of
any claim, suit, or proceeding which involves or is like to
involve this Agreement.
All loss settlements, provided they are within the terms and
conditions of the Company's policy and this Agreement, shall be
binding upon the Reinsurer. Upon receipt of satisfactory proof
of loss payment, the Reinsurer shall promptly pay the Company for
amounts due under this Agreement.
Net Loss
The term "net loss" as used herein shall be understood to mean
the sum actually paid or to be paid by the COMPANY in settlement
of losses reinsured hereunder for which it is liable after making
deductions for all other insuring reinsurance, whether
collectible or not, and all salvages and other recoveries,
including subrogation recoveries; provided however, that in the
event of insolvency of the COMPANY, "net loss" shall be
determined in accordance with the provisions of the Clause
entitled INSOLVENCY of this agreement. Net Loss shall not
include loss adjustment expenses.
It is agreed that the existence of underlying reinsurance, if
any, shall be entirely disregarded in determining the Company's
net loss.
Nothing in this Clause shall imply that losses are not
recoverable under this Agreement until the Company's net loss has
been finally ascertained.
Loss Adjustment Expenses
The term "loss adjustment expenses" shall mean expenses of the
Company, including court costs, prejudgment interest and post
judgment interest, incurred in the investigation, adjustment, and
defense of claims under the terms of policies subject to this
Agreement, which expenses are allocable to a specific net loss,
but shall not include administrative and office expenses and
salaries and expenses of employees and officials of the Company.
The Reinsurer shall indemnify the Company for the Reinsurer's
proportionate share of loss adjustment expenses which shall be in
addition to its Limit of Liability. In the event a verdict or
judgment is reduced by an appeal or a settlement, subsequent to
the entry of a judgment, resulting in an ultimate savings to the
REINSURER, or a judgment is reversed outright, the expenses
incurred in securing such reduction or reversal shall be prorated
between the COMPANY and the REINSURER in the proportion that each
benefits from such reduction or reversal, and the expenses
incurred up to the time of the original verdict or judgment shall
be prorated in proportion to each party's interest in such
original verdict or judgment.
Recoveries
The Reinsurer shall be subrogated, as respects to any loss for
which the Reinsurer shall actually pay or become liability to
pay, to all the rights of the Company against any person or other
entity who may be legally responsible in damages for said loss.
The Company hereby agrees to enforce such rights, but in case the
Company shall refuse or neglect to do so, the Reinsurer is hereby
authorized and empowered to enforce such rights.
Any recoveries, salvages, or reimbursements applying to risks
covered under this Agreement shall always be used to reimburse
the excess reinsurer, according to their participation, before
being used in any way to reimburse the Company for its primary
loss.
All salvages, recoveries, or received subsequent to a loss
settlement under this Agreement shall be applied as if recovered
or received prior to the aforesaid settlement and all necessary
adjustments shall be made by the parties hereto.
ARTICLE 14
AUDITS
The Company shall place at the disposal of the Reinsurer and the
Reinsurer shall have the right to inspect, through its authorized
representatives, at all reasonable times during the currency of
this Agreement and thereafter, the books, records, and papers of
the Company pertaining to the reinsurance provided hereunder and
all claims made in connection therewith.
ARTICLE 15
OFFSET
The Company and The Reinsurer may offset any balance or amount
due from one party to the other under this Agreement or any other
reinsurance agreement of any kind heretofore or hereafter entered
into between the Company and the Reinsurer, whether acting as
assuming reinsurer or ceding company. If the Company (including
all affiliates and/or subsidiaries, whether or not covered by
this Agreement) is comprised of more than one entity, all such
entities will be considered the Company for purposes of offset.
In the event of insolvency of either the Company or the
Reinsurer, offset shall be permitted in accordance with the terms
of this Clause and as otherwise permitted by law.
ARTICLE 16
INSOLVENCY
In the event of the insolvency of the Company and the appointment
of a liquidator or receiver, reinsurance due under this Agreement
shall be payable, with reasonable provision for verification, on
the basis of the liability of the Company resulting from claims
allowed against the Company in the liquidation proceeding without
diminution because such liquidator or receiver has failed to pay
all or a portion of any claims.
Payment by the Reinsurer as set forth above shall be made
directly and exclusively to the Company or its liquidator or
receiver, except as provided by subsection (a) of Section 4118 of
New York Insurance Law or except (a) where this Agreement
specifies another payee in the event of the insolvency, and (b)
the Reinsurer, with the consent of the direct insureds, has
assumed such policy obligations of the Company as direct
obligations to the payees under such policies in substitution for
the obligations of the Company to such payees.
In the event of the insolvency of the Company, the liquidator or
receiver shall give written notice of the pendency of claim
against the Company under policies reinsured within a reasonable
time after such claim is filed in the insolvency proceeding.
During the pendency of such claim, the Reinsurer has the right
but not the duty to investigate said claim and interpose in the
proceeding where the claim is to be adjudicated, at its own
expense, any defense that it may deem available to the Company,
or its liquidator or receiver. The expense thus incurred by the
Reinsurer will be chargeable against the Company, 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
Company.
ARTICLE 17
TAXES
The Company shall be liable for paying all taxes, other than
income or profit taxes, levied on the Reinsurer for business
reinsured under this Agreement. If the Reinsurer is obligated to
pay taxes other than income or profit taxes for business
reinsured under this Agreement, the Company shall reimburse the
Reinsurer, provided that the Company shall not be required to pay
the same tax twice.
EXCLUSIONS
1. Grain Risks - including feed mixing, grain elevators, and
train terminals;
2. Petro Chemical Risks and High Hazard Chemical -
including manufacturing and storage. High Hazard chemical
business is defined as a chemical exposure consisting of
acids, coal chemicals, industrial gases, petrochemical
(including, but not limited to, polypropylene, polyethylene
phenols, and polymers) petroleum and synthetic fuel refining,
chlorine, methane, caustic soda, electrolytic, and electro
thermal chemical manufacturing, ammonia, urea, and nitrogen
compounds (including nitric acid). In general, any chemical
with over 250 psig would be classified as high hazard.
3. Damage to Growing Crops or Standing Timber;
4. Satellites, Aerospace, and Aviation;
5. Boiler and Machinery when written as such;
6. Transmission and Distribution Liens except coverage provided
within 1,000 feet of insured's building;
7. Underground Mines, Tunnels, and Storage Facilities;
8. Wind and/or Solar Powered Electrical Generation Facilities;
9. Railroad Rolling Stock;
10. Builders Risks Contracts written for a term in excess
of 36 months;
11. Jewelers' and Furriers' Block;
12. Auto Physical Damage and Dealer's Open Lot, except for
Garage Keepers Legal Liability;
13. Ocean Marine;
14. Covered Stadiums and Domes
15. Flood and Earthquake when written as such;
16. Animal Mortality;
17. Strike Insurance;
18. Offshore Drilling Rigs, Pipeline Risks and Property
belonging thereto;
19. Fidelity and Surety;
20.Losses arising out of seepage and/or pollution as per the
Company's standard pollution and seepage exclusion. However,
this exclusion will not apply when the Company includes its
standard pollution exclusion on a policy and the judicial
entity having legal jurisdiction invalidates the Company's
exclusion thereby obligating the Company for liability
arising out of seepage and/or pollution when such liability
was intended to be excluded from coverage;
21. Insolvency Funds and Financial Guaranty Funds;
22. Retroactive Liability including IBNR an known losses;
23. Extra Contractual Obligation and Loss in Excess of Policy
Limits;
24. United States Longshoremen and Harbor Workers and ▇▇▇▇▇ Act
business;
25.War Risks as per the North American War Exclusion Clause
(Reinsurance), BRMA Clause Number 56A;
▇▇.▇▇▇▇▇▇▇▇ included in the Nuclear Incident Exclusion Clause
attached hereto (BRMA Clause No. 35B);
27. Assumed Resinsurance except for reinsurance assumed from
subsidiaries;
28. Business Produced By Managing General agents;
29.The Company's liability as a member, subscriber, or reinsurer
of any pool, syndicate, or association including, but not
limited to, Fair Plans and Coastal Pools;
EXCLUSIONS CONTINUED
30.Losses arising out of asbestos as per the Company's standard
asbestos exclusion. However, this exclusion will not apply
when the Company includes its standard asbestos exclusion on
a policy, or when the Company includes its standard asbestos
exclusion on a policy and the judicial entity having legal
jurisdiction invalidates the Company's exclusion policy and
the judicial entity having legal jurisdiction invalidates the
Company's exclusion thereby obligating the Company for
liability arising out of asbestos such liability was intended
to be excluded from coverage.
31. Meridian Insurance CLUG Risk Classification 5.
The exclusions enumerated above, with the exception of 21, 22,
23, 24, 25, 26, 27, 28, and 29, will not apply when they are
merely incidental to the main operations of the insured, provided
such main operations are covered by the Company and are not
themselves excluded from the scope of this Agreement. The
Company shall be sole judge of what is "incidental".
Errors and omissions on the part of the Company, shall not
invalidate the reinsurance under this Agreement, provided such
errors or omissions are corrected promptly after discovery
thereof, but the liability of the Reinsurer under this Agreement
or any exhibits or endorsements attached thereto shall in no
event exceed the limits specified herein.
Risks which are specifically excluded by the Agreement may be
individually submitted hereunder, and, if accepted by the
Reinsurer, such business shall then be covered under the terms of
this Agreement, except as such terms shall be modified by such
acceptance.
35 B
NUCLEAR INCIDENT EXCLUSION CLAUSE--PHYSICAL DAMAGE--REINSURANCE
U.S.A.
1. This Reinsurance does not cover any loss or liability
accruing to the Reassured, directly or indirectly, and
whether as Insurer or Reinsurer, from any Pool of Insurers or
Reinsurers formed for the purpose of covering Atomic or
Nuclear Energy risks.
2. Without in any way restricting the operation of
Paragraph (1) of this Clause, this Reinsurance does not cover
any loss or liability accruing to the Reassured, directly or
indirectly and whether as Insurer or Reinsurer, from any
insurance against Physical Damage (including business
interruption or consequential loss arising out of such
Physical Damage) to:
I. Nuclear reactor power plants including all auxiliary
property on the site, or
II. Any other nuclear reactor installation, including
laboratories handling radioactive materials in connection
with reactor installations, and "critical facilities" as
such, or
III. Installations for fabricating complete fuel
elements or for processing substantial quantities of
"special nuclear material", and for reprocessing,
salvaging, chemically separating, storing or disposing of
"spent" nuclear fuel or waste materials, or
IV. Installations other than those listed in Paragraph
(2) III above using substantial quantities of radioactive
isotopes or other products of nuclear fission.
3. Without in any way restricting the operations of
Paragraphs (1) and (2) hereof, this Reinsurance does not
cover any loss or liability by radioactive contamination
accruing to the Reassured, directly or indirectly, and
whether as Insurer or Reinsurer, from any insurance on
property which is on the same site as a nuclear reactor power
plant or other nuclear installation and which normally would
be insured therewith except that this Paragraph (3) shall not
operate
(a) where Reassured does not have knowledge of such
nuclear reactor power plant of nuclear installation, or
(b) where said insurance contains a provision
excluding coverage for damage to property cused by or
resulting from radioactive contamination, however caused.
However, on and after 1st January 1960, this subparagraph
(b) shall only apply provided the said radioactive
contamination exclusion provision has been approved by the
Governmental Authority having jurisdiction thereof.
4.Without in any way restricting the operations of Paragraph
(1), (2), and (3) hereof, this Reinsurance does not cover any
loss or liability by radioactive contamination accruing to
the Reassured, directly or indirectly, and whether as Insurer
or Reinsurer, when such radioactive contamination is a named
hazard specifically insured against.
▇.▇▇ is understood and agreed that this Clause shall not
extend to risks using radioactive isotopes in any form where
the nuclear exposure is not considered by the Reassured to be
the primary hazard.
35B
6.The term "special nuclear material" shall have the meaning
given it in the Atomic Energy Act of 1954 or by any law
amendatory thereof.
7. Reassured to be sole judge of what constitutes:
(a) substantial quantities, and
(b) the extent of installation, plant, or site.
Note: Without in any restricting the operation of Paragraph (1)
hereof, it is understood and agreed that:
(a) all policies issued by the Reassured on or before
31st December 1957 shall be free from the application of
the other provisions of this Clause until expiry date or
31st December 1960 whichever first occurs whereupon all
the provisions of this Clause shall apply.
(b) with respect to any risk located in Canada policies
issued by the Reassured on or before 31st December 1958
shall be free from the application of the other provisions
of this Clause until expiry date or 31st December 1960
whever first occurs whereupon all the provisions of this
Clause shall apply.
56 A
NORTH AMERICAN WAR EXCLUSION CLAUSE (REINSURANCE)
As regards interests which at time of loss or damage are on
shore, no liability shall attach hereto in respect of any loss or
damage which is occasioned by war, invasion, hostilities, acts of
foreign enemies, civil war, rebellion, insurrection, military or
usurped power, or martial law or confiscation by order of any
government or public authority.
This War Exclusion Clause shall not, however, apply to interests
which at time of loss or damage are within the territorial limits
of the United States of America (comprising the fifty States of
the Union and the District of Columbia and including Bridges
between the U.S.A. and Mexico provided they are under United
States ownership), Canada, St. Pierre and Miquelon, provided such
interests are insured under policies, endorsements, or binders
containing a standard war or hostilities or warlike operations
exclusion clause.
DEFINITION OF LOCATION
The Company shall be the sole judge of what constitutes a single
location provided that:
1. One location shall always be determined from the standpoint
of the peril of fire, whether or not the fire insurance is
written by the Company;
2. A non-fire resistive building and its contents shall never
be considered as constituting more than one location, nor shall
time element coverages be considered a separate location apart
from the building and its contents.
3. When two or more buildings and personal property are
situated at the same general location, with no single building
located farther than 100 yards from the nearest other building,
the Company shall identify on its records at the time of
acceptance by the Company those two or more original buildings
which are deemed to constitute a single location. If such
identification is not made, each building and its contents shall
be considered to be a separate location.
4. The term building shall mean each structure which is within
the local fire insurance rating organization's definition of a
separate building or fire division for rate making purposes.
With respect to those structures not within such definition(s),
the term "building" shall mean each separately roofed structure
enclosed within exterior walls.
LOSS OCCURRENCE DEFINITION
The term "Loss Occurrence" shall mean the sum of all individual
losses directly occasioned by any one disaster, accident, or loss
or series of disaster, accidents or losses arising out of one
event which occurs within the area of one state of the United
States or province of Canada and states or provinces contingous
thereto and to one another. However, the duration and extent of
any one "Loss Occurrence" shall be limited to all individual
losses sustained by the Company occurring during any period of
168 consecutive hours arising out of and directly occasioned by
the same event except that the term "Loss Occurrence" shall be
further defined as follows:
(i) As regard windstorm, hail, tornado, hurricane,
cyclone, including ensuing collapse and water damage, all
individual losses sustained by the Company occurring
during any period of 72 consecutive hours arising out of
and directly occasioned by the same event. However, the
event need not be limited to one state or province or
states or provinces contiguous thereto.
(ii) As regards riot, riot attending a strike, civil
commotion, vandalism and malicious mischief, all
individual losses sustained by the Company occurring
during any period of 72 consecutive hours within the area
of one municipality or county and the municipalities or
counties contiguous thereto arising out of and directly
occasioned by the same event. The maximum duration of 72
consecutive hours may be extended in respect of individual
losses which occur beyond such 72 consecutive hours during
the continued occupation of an assured's premises by
strikers, provided such occupation commenced during the
aforesaid period.
(iii) As regards earthquake (the epicenter of which
need not necessarily be within the territorial confines
referred to in the opening paragraph of this Article) and
fire following directly occasioned by the earthquake, only
those individual fire losses which commence during the
period of 168 consecutive hours may be included in the
Company's "Loss Occurrence".
(iv) As regards to "Freeze", only individual losses
directly occasioned by collapse, breakage of glass and
water damage (caused by bursting of frozen pipes and
tanks) may be included in the Company's "Loss Occurrence".
For all "Loss Occurrences" the Company may choose the date
and time when any such period of consecutive hours
commences provided that it is not earlier than the date
and time of the occurrence of the first recorded
individual loss sustained by the Company arising out of
that disaster, accident, or loss, and provided that only
one such period of 168 consecutive hours shall apply with
respect to one event, except for those "Loss Occurrences"
referred to in Subparagraphs (i) and (ii) above where only
one such period of 72 consecutive hours shall apply with
respect to one event, regardless of the duration of the
event.
No individual losses occasioned by an event that would be
covered by 72 hours Clauses may be included in any "Loss
Occurrence" claimed under the 168 hours provision.
Accepted By:
▇▇▇▇ ▇. ▇▇▇▇▇▇
MERIDIAN INSURANCE
Date:
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
NAC REINSURANCE CORPORATION
Date: