be construed to extend any rights or obligations to
any person not a party to this agreement.
Subject to the terms of the policies, the REINSURED shall be the sole judge as
to what shall constitute a claim or loss covered under the REINSURED'S original
policy and as to the REINSURED'S liability thereunder and as to the amount or
amounts which it shall be proper for the REINSURED to pay thereunder, and the
CORPORATION shall be bound by the judgment of the REINSURED as to the liability
and obligation of the REINSURED.
No error or omission in reporting any risk or loss reinsured hereunder shall
invalidate the liability of the CORPORATION, provided such error or omission is
corrected promptly by the REINSURED after discovery thereof, but the reporting
of reinsurance not authorized by this agreement or by special acceptance
hereunder shall not bind the CORPORATION, except for the return of premium paid
therefor.
ARTICLE XIII
OFFSET.
The REINSURED or the CORPORATION may offset any balance, whether on
account of premiums, commissions, loss or claim expenses due from one party to
the other under this agreement or under any other reinsurance agreement
heretofore or hereafter entered into between the REINSURED and the CORPORATION,
whether acting as assuming reinsurer or ceding company.
ARTICLE XIV
INSPECTION OF RECORDS.
The CORPORATION may inspect the records of the REINSURED
pertaining to the risks reinsured hereunder.
ARTICLE XV
ASSIGNMENTS AND CHANGES OF INTEREST.
No assignment or change of the REINSURED'S
interest hereunder, whether voluntary or involuntary and whether by merger or
reinsurance of its entire business with another company or otherwise, shall be
binding upon the CORPORATION.
ARTICLE XVI
TERMINATION.
This agreement shall continue in effect until terminated by mutual
consent, or by either party's giving to the other party not less than 180 days'
notice in advance of any calendar quarter by registered mail or express delivery
service, stating the termination date.
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be signed
in duplicate.
ZENITH INSURANCE COMPANY
EMPLOYERS REINSURANCE CORPORATION
/s/ JOHN J. TICKNER
/s/ GARRY L. SCHULTZ
Title:
Title:
Second Vice President
[Illegible]
Title:
Title:
Second Vice President
Date:
July 10, 2002
Date:
July 3, 2002
ZNAT INSURANCE COMPANY
ZENITH STAR INSURANCE COMPANY
/s/ JOHN J. TICKNER
/s/ JOHN J. TICKNER
Title:
Title:
Title:
Title:
Date:
July 10, 2002
Date:
July 10, 2002
ATTACHMENTS:
1.
Insolvency Clause
2.
Nuclear Incident Exclusion Clauses
ATTACHMENTS NOT INCLUDED
AMENDMENT NO. 1
The Workers' Compensation and Employers' Liability Excess of Loss Reinsurance
Agreement of July 1, 2002, between EMPLOYERS REINSURANCE CORPORATION of Overland
Park, Kansas and ZENITH INSURANCE COMPANY and ZNAT INSURANCE COMPANY, both of
Woodland Hills, California and ZENITH STAR INSURANCE COMPANY of Austin, Texas is
hereby amended as follows:
As respects occurrences taking place on or after September 1, 2002:
Article I (a) is hereby deleted and the following is submitted therefore:
(a) reinsurance assumed by the REINSURED, except for reinsurance assumed by the
REINSURED from the CORPORATION relating to incidental exposures from