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Swiss Re
 
  
  
   
    1.




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Swiss Re
 1.
    
    The Preamble is revised to read:
 
  
  
 2.
    
    Paragraph E. is added to Article III  Special Termination:
 E.
    
    This Article shall not apply to those Reinsurers with an A.M. Bests rating
of A+ or better at the inception of this Contract.
 3.
    
    Paragraph C.1. of Article IV  Definitions is revised to read:
 1.
    
    Extra Contractual Obligations
   4.
    
    Paragraph C.3. and Paragraph C.4. of Article IV  Definitions are revised to read:
 2.




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Swiss Re
 3.
    
    This paragraph C. shall not apply where an Extra Contractual Obligation
and/or Loss in Excess of policy limits has been incurred due to the fraud of a member
of the Board of Directors or a corporate officer of the Company acting individually or
collectively or in collusion with any individual or corporation or any other
organization or party involved in the presentation, defense or settlement of any claim
covered hereunder.4.
    
    Recoveries, collectibles or retention from any other form of insurance or
reinsurance including deductibles or self-insured retention which protect the Company
against claims which are the subject matter of this paragraph C., whether collectible
or not, shall inure to the benefit of the Reinsurer and shall be deducted from the
total amount of such claims for purposes of determining the loss hereunder.
 5.
    
    Paragraph D. of Article IV  Definitions is revised to read:
 D.
    
    Loss Adjustment Expense as used herein shall mean all costs and expenses
allocable to a specific claim that are incurred by the Company in the investigation,
appraisal, adjustment, settlement, litigation, defense or appeal of a specific claim,
including court costs and costs of supersedeas and appeal bonds, and including 1)
pre-judgment interest, unless included as part of the award or judgment; 2)
post-judgment interest; 3) legal expenses and costs incurred in connection with
coverage questions and legal actions connected thereto, including Declaratory Judgment
Expense; and 4) a pro rata share of salaries and expenses of Company field employees,
and expenses of other company employees who have been temporarily diverted from their
normal and customary duties and assigned to the field adjustment of losses covered by
this Contract. Loss Adjustment Expense does not include the salaries and expenses of
Company employees, other than (4) above, office expenses and other overhead expenses.
 6.
    
    Paragraph F. of Article IV  Definitions is revised to read:
 F.
    
    Net Earned Premium
  3.




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Swiss Re
 7.
    
    Paragraph J. of Article IV  Definitions is revised to read:
 J.
    
    Ultimate Net Loss
  8.
    
    Exclusion Q. of Article VI  Exclusions are revised to read:
 Q.
    i.
    Loss, damage or expense of whatsoever nature caused directly or
indirectly by any of the following, regardless of any other cause or event
contributing concurrently or in any other sequence to the loss: nuclear reaction or
radiation, or radioactive contamination, however caused.
 ii.
    
    However, if nuclear reaction or radiation, or radioactive contamination
results in fire it is specifically agreed herewith that this Agreement will pay for
such fire loss or damage subject to all of the terms, conditions and limitations of
this Agreement.iii.
    
    This exclusion shall not apply to loss, damage or expense originating from and
occurring at risks using radioactive isotopes in any form where the nuclear
exposure is not considered by the Company to be the primary hazard.
 9.
    
    The following Paragraph is added to Article IX- Reinsurance Premium:
  1.
    
    All statements shall be sent to the Reinsurer at:
 a.
    
    E-Mail/XML or EDI Formats: reaccount_armonk@swissre.com, orb.
    
    Standard Mail:
 
 4.




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Swiss Re
 2.
    
    All checks and supporting documentation shall be sent to the Reinsurer through one
of the options set forth below:
 a.
    
    WIRE TRANSFER
 (i)
    
    As respects payments in United States dollars, all wires
should be sent to:
 
 (ii)
    
    All supporting documentation should be sent to:
 
 b.
    
    LOCK BOX
  
 10.
    
    Article XI  Agency Agreement is revised to read:
 ARTICLE XI
 AGENCY AGREEMENT
  5.




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Swiss Re
 11.
    
    Article XII  Salvage and Subrogations is revised to read:
 A.
    
    In the event of the payment of any indemnity by the Reinsurer under this
Agreement, the Reinsurer shall be subrogated, to the extent of such payment, to all of
the rights of the Company against any person or entity legally responsible for damages
of the loss. The Company agrees to enforce such rights; but, in case the Company
refuses or neglects to do so, the Reinsurer is hereby authorized and empowered to
bring any appropriate action in the name of the Company or their policyholders or
otherwise to enforce such rights.B.
    
    The Reinsurer shall be credited with salvage or subrogation recoveries (i.e.,
reimbursement obtained or recovery made by the Company, less Loss Adjustment Expense
incurred in obtaining such reimbursement or making such recovery) on account of claims
and settlements involving reinsurance hereunder. Salvage and subrogation recoveries
thereon shall always be used to reimburse the excess carriers in the reverse order of
their priority according to their participation before being used in any way to
reimburse the Company for its primary loss.
 12.
    
    Article XXII  Mortgagee Reinsurance Endorsements shall be deleted in its entirety.13.
    
    Article XXIII  Third Party Rights (BRMA 52C Modified) is revised to read:
 ARTICLE XXIII
 THIRD PARTY RIGHTS (BRMA 52C MODIFIED)
  14.
    
    Article XXVI  Access to Records (BRMA 1E) is revised to read:
 ARTICLE XXVI
 ACCESS TO RECORDS (BRMA 1E)
  15.
    
    Paragraph F. of Article XXVIII  Arbitration shall be deleted in its entirety and the
remaining paragraph shall be realphabetized. Furthermore, the previous paragraph G. is
revised as paragraph F., as shall read as follows:
 6.




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Swiss Re
 F.
    
    Each party shall bear the expense of its own arbitrator and shall jointly and
equally bear with the other party the cost of the third arbitrator. The remaining
costs of the arbitration shall be allocated by the panel.
 16.
    
    Article XXXI  Intermediary (WINT8) shall be deleted in its entirety.
   ATTEST:
    
    PHILADELPHIA INSURANCE COMPANY
PHILADELPHIA INDEMNITY INSURANCE COMPANY/s/ William A. McKenna
    
    /s/ Christopher J. MaguireWilliam A. McKenna
    
    Christopher J. MaguireName
    
    NameAVP  Reinsurance
    
    CUO & EVPTitle
    
    Title
  ATTEST:
    
    SWISS REINSURANCE AMERICA CORPORATION/s/ Edward Lyons
    
    /s/ Timothy M. LamotheEdward Lyons
    
    Timothy M. LamotheName
    
    NameVice President
    
    Senior Vice PresidentMember of Management
    
    Member of Senior ManagementTitle
    
    Title
 th
 7.