Document:

exv10w184

EXHIBIT
10.184

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

WORKERS’ COMPENSATION AND GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

PREAMBLE

The Reinsurers hereby reinsure the Company to the extent and on the terms and conditions and
subject to the exceptions, exclusions and limitations hereinafter set forth.

ARTICLE 1 — EXHIBITS COVERED

The Company shall reinsure with the Reinsurers and the Reinsurers shall accept reinsurance
from the Company as set forth in Exhibits “A” and “B”, which are attached hereto and made
part of this Contract, such Exhibits being entitled for purposes of identification as
follows:

Exhibit “A” Excess of Loss Reinsurance of General Liability

Exhibit “B” Excess of Loss Reinsurance of Workers’ Compensation

ARTICLE 2 — RETENTION BY COMPANY

This Contract applies only to such portion of any obligation of the Company as the
Company retains net for its own account, and in calculating the amount of any loss hereunder
and in computing the amount or amounts in excess of which this Contract attaches only loss or
losses in respect to that portion of any obligation which the Company retains net for its own
account shall be included.

It is agreed that the amount or amounts of the Reinsurers’ liability hereunder in respect of
any losses shall not be increased by reason of the inability of the Company to collect from
any other Reinsurers whether specific or general, any amount or amounts which may have
become due from them whether such inability arises from the insolvency of such other
Reinsurers of otherwise.

ARTICLE 3 — REINSURANCE PREMIUM

	(a)	 	The Reinsurers’ premium for the reinsurance provided under
this Contract shall be computed by the application of a rate

 

 

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	 	 	of .003% to the Company’s net premium written on the business covered
under Exhibits “A” and “B” subject to an annual minimum premium of
$57,000 and an annual deposit premium of $64,000 for the combined Sixth
Excess of Loss layer provided under Exhibits “A” and “B”.
	 
	(b)	 	The deposit premium as provided for in (a) above shall be payable to Reinsurers in four equal quarterly installments at the
beginning of each calendar quarter. The Company shall undertake to furnish Reinsurers at the conclusion of each year a
report of the net premiums written during such year. The difference between
the annual deposit premium paid and the annual
developed reinsurance premium for the Sixth Excess of Loss
Reinsurance under Exhibits “A” and “B” computed in accordance
with the provisions of (a) above shall be promptly paid by the
debtor party.
	 
	(c)	 	The term “net premium written” shall mean gross premiums written by the Company on the business covered hereunder less
return premiums for cancellations and reductions and less
premiums on reinsurance which inures to the benefit of the
Reinsurers. No deduction shall be made for dividends
declared, paid or credited to policyholders of the Company.

ARTICLE 4 — SUBROGATION

The Company hereby agrees to enforce such subrogation rights as it may obtain by
virtue of payments made under its policies, but in case the Company shall refuse or neglect to
do so, the Reinsurers  are hereby authorized and empowered to bring any appropriate action in
the name of the Company or its policyholders or otherwise to enforce such rights.

The expense of any subrogation proceedings brought by the Company or the Reinsurers to enforce
such rights shall be apportioned between the Company and the Reinsurers in the ratio of their
respective interests in the total subrogation recovery but in the event there is a failure to
make a subrogation recovery the expense of the proceedings shall be apportioned between the
Company and the Reinsurers in the ratio of their respective interests in the total loss.

All subrogation recoveries made by either party subsequent to payments made by the Reinsurers
under this Contract shall be applied as if made prior to said payments and all necessary
adjustments shall be made between the Company and the Reinsurers as soon as practicable after
said subrogation recovery is made.

The Company shall have the right, before the happening of the accident or occurrence to waive
its right of subrogation.

 

 

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ARTICLE 5 — TAX CLAUSE

In consideration of the terms under which this Contract is issued, the Company
undertakes not to claim any deduction in respect of the premium hereon when making tax
returns, other than Income or Profits tax returns to any State or to the District of
Columbia.

ARTICLE 6 — PAYMENTS UNDER THIS CONTRACT

All amounts due to either party hereunder shall be payable in
United States currency.

ARTICLE 7 — ACCESS TO RECORDS

The Reinsurers or their duly appointed representatives shall at
reasonable times, have free access to all books and records of the
Company and of its agents or attorneys for the purpose of obtaining
any further information concerning this reinsurance or the subject
matter hereof.

ARTICLE 8 — INSOLVENCY CLAUSE

The reinsurance provided by this Contract shall be payable by the
Reinsurers directly to the Company or to its liquidator, receiver
or statutory successor on the basis of the liability of the Company
under the contracts reinsured without diminution because of the insolvency of the Company. In the event of the insolvency of the
Company, the liquidator or receiver or statutory successor of the
Company shall give written notice of the pendency of each claim
against the Company on a policy or bond reinsured within a reasonable time after such claim is filed in the insolvency proceeding;
and during the pendency of such claim, the Reinsurers may investigate such claim and
interpose, at their own expense, in the proceeding where such claim is to be adjudicated
any defense or defenses which it may deem available to the Company, its liquidator
or receiver or statutory succesor. The expense thus incurred by
the Reinsurers shall be chargeable, subject to court approval,
against the Company as a part of the expense of liquidation to the
extent of such proportionate share of the benefit as shall accrue
to the Company solely as a result of the defense undertaken by the
Reinsurers.

The reinsurance shall be payable as hereinbefore in the above paragraph provided except
as otherwise provided by Section 315 (relating to Fidelity and Surety Risks) of the
Insurance Law of New York or except (a) where the Contract specifically provides another
payee of such reinsurance in the event of the insolvency of the

 

 

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Company and (b) where the Reinsurers with the consent of the direct
insured or insureds have assumed such policy obligations of the
Reinsurers to the payees under such policies and in substitution
for the obligations of the Company to such payees.

ARTICLE 9 — ARBITRATION

As a condition precedent to any right of action hereunder, any dispute arising out of
this Agreement shall be submitted to the decision of a board of arbitration of two
arbitrators and an
umpire, meeting in Boston, Massachusetts unless otherwise agreed.

The members of the board of arbitration shall be active or retired
disinterested officials of insurance or reinsurance companies, or
Lloyds Underwriters. Each party shall appoint its arbitrator and
the two arbitrators shall choose an umpire before instituting the
hearing. In the event that either party should fail to choose an
arbitrator within thirty (30) days following a written request by
the other party to enter upon arbitration, the requesting party may
choose two arbitrators who shall in turn choose an umpire before
entering upon arbitration. In the event the two arbitrators fail to agree on an umpire either
party shall have the right to submit the matter to the American Arbitration Association in
effect at that time.

Each party shall present its case to the arbitrators within sixty (60) days following the date
of their appointment. The board shall make its decision with regard to the custom and usage of
the insurance and reinsurance business. The board shall issue its decision in writing based
upon a hearing in which evidence may be introduced without following strict rules of evidence
but in which cross examination and rebuttal shall be allowed. The board shall make its
decision within 60 days following the termination of the hearings unless the parties consent to
an extension. The majority decision of the board shall be final and binding upon all parties to
the proceeding. Judgement may be entered upon the award of the board in any court having
jurisdiction thereof.

If more than one Reinsurer is involved in the same dispute, all such Reinsurers shall
constitute and act as one party for purposes of this clause and communications shall be made by
the Reassured to each of the Reinsurers constituting the one party, provided, however, that
nothing therein shall impair the rights of such Reinsurers to assert several, rather than
joint, defenses or claims, nor be construed as changing the liability of the Reinsurers under
the terms of this Agreement from several to joint.

Each party shall bear the expense of its own arbitrator and shall jointly and equally bear
with the other party the expense of the

 

 

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umpire. The remaining costs of the arbitration proceedings shall
be allocated by the board.

	ARTICLE 10 — OFFSET CLAUSE

Each party hereto shall have, and may exercise at any time and from time to time, the
right to offset any balances, whether on account of premiums or on account of losses or
otherwise, due from such party to the other (or, if more than one, any other) party hereto
under this Contract or under any other reinsurance agreement heretofore or hereafter entered
into by and between them, and may offset the same against any balance or balances due or to
become due to the former from the latter under the same or any other reinsurance agreement
between them; and the party asserting the right of offset shall have and may exercise such
right whether the balance or balances due or to become due to such party from the
other are on account of premiums or on account of losses or otherwise and regardless of the capacity, whether as assuming insurer or
as ceding insurer, in which each party acted under the agreement
or, it more than one, the different agreements involved.

ARTICLE 11 — ADVANCES

If the Reinsurer is unauthorized in any State of the United States of America or the District
of Columbia where authorization is required by insurance regulatory authorities, the Reinsurers
will fund (provided particulars are received forty-five days prior to the date funding is
required by the Company) outstanding losses by either cash advances, escrow accounts for the
benefit of the Company, Letters of Credit, or a combination thereof, if a penalty would accrue to
the Company on its statement without such funding. The Reinsurers shall have the sole option of
determining the method of funding referred to above provided it is acceptable to the insurance regulatory authorities involved.

LOSS RESERVES: (U.S. Dollar Reinsurance Letter of Credit) (Applies
only to those Reinsurers who are domiciled outside the United
States of America who cannot qualify for credit by the State having
jurisdiction over the Company’s loss reserves).

As regards policies or bonds issued by the Company coming within the scope of this Contract,
the Company agrees that when it shall file with the Insurance Department or set up on its
books reserves for losses covered hereunder which it shall be required to set up by law it
will forward to the Reinsurers a statement showing the proportion of such loss reserves
which is applicable to them. The Reinsurers hereby agree that they will apply for and secure
delivery to the Company a clean irrevocable Letter of Credit issued

 

 

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by Citibank N.A. in an amount equal to Reinsurers’ proportion of said loss reserves.

The Company undertakes to use and apply any amounts which it may draw upon such Credit
pursuant to the terms of the Contract under which the Letter of Credit is held, and for the
following purposes only:

	 	A.	 	To pay the Reinsurers’ share or to reimburse the
Company for the Reinsurers’ share of any liability
for loss reinsured by this Contract.
	 
	 	B.	 	To make refund of any sum which is in excess of the actual
amount required to pay Reinsurers’ share of any liability reinsured by
this Contract.

Citibank N.A. shall have no responsibility whatsoever in connection with the propriety of
withdrawals made by the Company or the dis- position of funds withdrawn, except to see that
withdrawals are made only upon the order of properly authorized representatives of the Company.

ARTICLE 12 — SERVICE OF SUIT

This Article applies only to other than Domestic Reinsurers.

In the event of the failure of the Reinsurers to pay any amount claimed to be due hereunder, the
Reinsurers, at the request of the Company, will submit to the jurisdiction of any court of
competent jurisdiction within the United States and will comply with all requirements
necessary to give such court jurisdiction and all matters arising hereunder shall be determined
in accordance with the law and practice of such court.

Service of process in such suit may be made upon Messrs. Mendes and Mount, Three Park Avenue,
New York, New York 10016 and that in any suit instituted, the Reinsurers will abide by the
final decision of such court or of any appellate court in the event of an appeal.

The above-named are authorized and directed to accept service of process on behalf of the
Reinsurers in any such suit and/or upon the request of the Company to give a written
undertaking to the Company that they will enter a general appearance upon the Reinsurers’
behalf in the event such a suit shall be instituted.

Further, pursuant to any statute of any state, territory or district of the United States which
makes provisions therefore, the Reinsurers hereby designate the Superintendent, Commissioner or
Director of Insurance or other officer specified for that purpose

 

 

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in the statute, or his successor or successors in office, as their true and lawful attorney
upon whom may be served any lawful process in any action, suit or proceeding instituted by or on
behalf of the Company or any beneficiary hereunder arising out of this Contract of reinsurance,
and hereby designate the above named as the person to whom the said officer is authorized to
mail such process or a true copy thereof.

ARTICLE 13 — ERRORS AND OMISSIONS

Any inadvertent delay, omission or error shall not be held to relieve either party
hereto from any liability which would attach to it hereunder if such delay, omission or error
had not been made, provided such delay, omission or error is rectified upon discovery.

ARTICLE 14 — COMMENCEMENT AND TERMINATION

This Contract applies only to accidents or occurrences happening
during its effective period. This Contract is effective at Midnight, December 31, 1980 Standard Time in Boston, Massachusetts and shall remain in force
continuously unless terminated at midnight on
any subsequent December 31 by either party giving the other at
least three months prior notice of cancellation. Otherwise, this
Contract may be cancelled only by mutual consent, or if required by
law or administrative order.

ARTICLE 15 — REINSURANCE INTERMEDIARY DESIGNATION

Holborn Agency Corporation, 90 John Street, New York, New York 10038 is hereby
recognized as the Intermediary negotiating this Contract for all business hereunder. All
communications (including but not limited to notices, statements, premiums, return premiums,
commissions, taxes, losses, loss adjustment expense, salvages and loss settlements) relating
thereto shall be transmitted to the Company or the Reinsurers through Holborn Agency Corporation.
Payments by the Company to the Intermediary shall be deemed to constitute payment to the
Reinsurer. Payments by the Reinsurers to the Intermediary shall be deemed to constitute payment
to the Company only to the extent that such payments are actually received by the Company.

ARTICLE 16 — INTERPRETATIONS

The validity and interpretation of this Contract and of each Article and
part thereof shall be governed by the Law of the Commonwealth of Massachusetts.

EE/ms — 7/6/81

 

 

EXHIBIT A

EXCESS OF LOSS REINSURANCE OF GENERAL LIABILITY

SECTION 1 — COVERAGE

The Reinsurers hereby reinsure the Company, subject to the provisions and
conditions herein contained, in respect of liability
which may accrue to the Company under any contracts of insurance or
reinsurance (hereinafter referred to as obligations of the
Company), but excluding liability in connection with the following class of business or
contracts:

Workers’ Compensation and Employers’ Liability insurance, but this exclusion shall
not apply to Workers’ Compensation or Employers’ Liability coverage given under
public liability policies written by the Company (other than Umbrella Excess
Liability policies).

Bankers’ and Brokers’ insurances or reinsurances issued by the Company meaning
contracts issued to banks, trust companies, building and loan companies, safe
deposit companies, investment companies, including investment trusts, finance
companies, credit unions, stock or security brokers, or to similar financial
institutions, insuring them against loss from the following hazards:

Infidelity of employees and/or partners

Unfaithful performance of duties by employees
and/or partners 

Loss of property in transit 

Forgery or alteration of negotiable or other paper 

Burglary, robbery, theft, false pretenses or fraud

Mysterious desappearance or misplacement of property 

Loss of property from safe deposit boxes or other depositories

Damage to or destruction of money or securities 

Counterfeiting of currencies or securities

Motor Vehicle Physical Damage Insurance, but this exclusion shall
not apply to Motor Vehicle Property Damage Liability Insurance.

Credit Insurance and/or Financial Guarantee.

Fire Insurance, including the coverages ordinarily written under Extended Coverage
Endorsements.

 

 

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Group Health, Disability, Hospital or Surgical Insurance, but this exclusion shall not
apply to any loss due to two or more persons insured under one or more Group policies suffering
bodily injuries, including death resulting therefrom, as a result of one accident or series of
accidents arising out of one event.

Livestock Mortality Insurance.

Surety business, but this exclusion shall not apply to faithful
performance bonds or public official bonds; provided, however, that
the Reinsurers shall not be liable for any loss resulting from the insolvency of any firm,
company, corporation or bank with which a guaranteed official has deposited funds in the course of his duties.

Insurance covering the liability of owners or operators of aircraft carrying passengers for
hire for injuries to such passengers.

Contracts of insurance written on any cost-plus plan which provides for payment of the full
amount of all losses, however great, by the policyholder. This exclusion shall not apply to
contracts of insurance, premiums for which are determined by a retrospective rating plan which
provides for a specific maximum premium or a formula for determination of a maximum premium.

Contracts of liability insurance covering injuries to persons or property arising out of the
rail operations of Class 1 railroads; but this exclusion shall not apply to railroad Protective
Liability policies issued at the request of the Company’s policyholders doing work for or on the premises of such railroads.

Liability under any Insolvency Fund arising by contract, operation of law or otherwise,
whether voluntary or involuntary. “Insolvency Fund” includes any guaranty fund, insolvency
fund, plan, pool, association, fund or other arrangement, howsoever denominated, established or
governed; which provides for any assessment of or payment or assumption by the Company of part
or all of any claim, debt, charge, fee, or other obligation of an insurer, or its successors, or assigns, which has
been declared by any competent authority to be insolvent, or which has been otherwise deemed
unable to meet any claim, debt, charge, fee or other obligation in whole or in part.

Excess of Loss Reinsurance Contracts.

This Contract is subject to the Nuclear Incident Exclusion Clause — Liability — Reinsurance
and the Nuclear Incident Exclusion Clause — Physical Damage — Reinsurance attached hereto.

 

 

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SECTION 2 — LIMIT OF LIABILITY

The Reinsurer shall be liable for ultimate net loss in excess of
the sum of $30,000,000 of ultimate net loss each and every accident
or occurrence in respect of business the subject matter of this
Exhibit, subject to a limit of $15,000,000 on account of each and
every accident or occurrence.

It is also agreed that subrogation expense incurred shall be paid in addition to the
applicable limits of liability set forth in this Section 2, on the basis provided in Article 4
of the Contract.

For purposes of this Exhibit it is agreed that the Company’s limit of liability
under any and all policies of personal accident insurance (individual and group)
covering any one individual shall be considered as not exceeding $275,000.
Subject to this agreement and subject to the limits set forth in this Section
2 it is agreed that the Company is reinsured hereunder for the excess of the
amounts set forth in this Section 2 of ultimate net loss any one accident, or
series of accidents arising out of one event involving more than one person covered
under such policies issued by the Company.

SECTION 3 — ULTIMATE NET LOSS

The term “Ultimate Net Loss” as used in this Exhibit shall mean the amount actually paid
by the Company (including loss adjustment expenses, attorneys’ fees and other costs of
investigation or litigation) in settlement of or payment of claims or judgements arising from
each and every loss for which the Company is or may be found liable under its contracts of insurance or reinsurance, less salvages and subrogation recoveries and amounts recovered or recoverable under pooling agreements or other reinsurances, whether
collectible, or not; provided, however, that in the event of the
insolvency of the Company, “Ultimate Net Loss” shall mean the
amount of loss (including loss adjustment expenses, attorneys’ fees
and other costs of investigation or litigation) which the Company
has incurred or for which it is liable, and payment by the Reinsurers shall be made to the
liquidator, receiver or statutory successor of the Company in accordance with the provisions of
Article 8 of this Contract. Salaries and expenses of employees of the
Company shall not be included in ascertaining ultimate net loss.

This Contract shall protect the Company within the limit hereof, in
connection with any loss for which the Company may be legally
liable to pay in excess of the limit of its original policy, where
loss in excess of the limit has been incurred because of its
failure to settle within the policy limit or by reason of alleged
or actual negligence, fraud or bad faith in rejecting an offer of

 

 

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settlement or in the preparation of the defense or in the trial of any action against its
insured or in the preparation of prosecution of an appeal consequent upon such action.

It is agreed that the Company may carry underlying limits of indemnity recoveries under
which shall inure to the sole benefit of the Company and shall be disregarded in computing
the net excess loss in excess of which this Contract attaches.

SECTION 4 — DEFINITION OF “EACH AND EVERY ACCIDENT OR OCCURRENCE”

The term “each and every accident or occurence” as used in this Exhibit is defined
as follows according to the class or risk involved:

	 	A.	 	Products Public Liability (Excluding Completed Operations)
	 
	 	 	 	All injury or damage caused to persons or property by any manufactured, prepared or
acquired lot of goods or products.
	 
	 	B.	 	Fidelity and Forgery
	 
	 	 	 	All losses resulting from any fraudulent or dishonest act or omission or series
thereof on the part of any one person or of several persons acting in collusion
(whether employees or not) and irrespective of the number of the Company’s
obligations involved; provided, that in the case of any loss involving two or more
persons acting in collusion, losses resulting from separate acts or omissions on
the part of each such person shall be included as part of such loss.

	 	1.	 	It is agreed that each and every loss occurring prior to midnight on the date of termination of this Contract and discovered not
later than three years after such termination
(excluding only any loss which occurred wholly
prior to midnight on the effective date of this
Contract) shall be recoverable under this
Contract.
	 
	 	2.	 	It is further agreed that each and every loss
resulting from a series of acts or omissions,
some prior to and some subsequent to midnight
on the effective date of this Contract, shall
be disregarded.

As regards losses arising under policies and/or contracts

 

 

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covering on a “losses discovered” or “claims made during” basis (that is to say policies and/or
contracts in which the date of discovery of the loss, or the date the claim is made against the
insured or is first notified to the Company, determines under which policy and/or
contract the loss is collectible), such losses are covered hereunder and the
date of the discovery of such loss or the date such claim is made or first notified
shall be deemed to be the date of loss occurring for the purposes of this Contract, provided that the
date of the discovery of the loss or the date the claim is made or first notified falls within the period
covered by this Contract.

For the purposes of the foregoing the date of first discovery of a “loss” or the date the
claim is first made against an insured or first notified to the Company shall be the date applicable to the entire
loss and/or claim and the Reinsurers shall be liable for their proportion of the entire
loss and/or claim irrespective of the expiry date of this Contract and provided that such first
discovery date or first date such claim is made or notified falls within the period of this
Contract.

	 	C.	 	Liability Insurance Written Subject to an Aggregate Limit
	 
	 	 	 	As respects each and every liability insurance policy issued by the Company which contains one
or more aggregate limits of liability on a policy year basis, and as respects each such
aggregate limit under each policy year, the aggregate amount of all losses occurring during one
policy year. Where the Company issues more than one such policy to the same
policyholder such policies shall together be treated as though they were one policy. Losses
under such policies shall for the purposes of this reinsurance contract be deemed to have
occurred in the calendar year in which the inception date of the policy falls, except that as
respects such policies issued for a period in excess of twelve months, losses for the first
twelve month period shall be deemed to have occurred in the calendar year in which the inception
date of the policy falls and losses for each succeeding twelve month period or part thereof
shall be deemed to have occurred in the calendar year in which the anniversary date of the
policy starting such period falls.
	 
	 	D.	 	All Other Classes or Risks Covered hereunder (Including Completed
Operations)
	 
	 	 	 	All injuries to persons and all losses of, injury to or destruction
of property resulting from each accident or

 

 

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loss, or from each series of accidents or losses proximately arising out of or
following on any one cause or event.

SECTION 5 — CLAIMS AGAINST REINSURERS

The Company shall be the sole judge as to what claims are covered under its policies,
and all loss settlements made and all judgements paid by the Company, provided they are
within the terms and conditions of this Exhibit, shall be unconditionally binding upon the
Reinsurers and amounts falling to the share of the Reinsurers shall be immediately due and
payable by them upon reasonable evidence of the amount paid being given by the
Company. Nevertheless, it is understood and agreed that in the event of a loss
hereunder, or of an event or happening likely to result in a loss hereunder, the
Reinsurers shall have the right, if they so elect, to cooperate with the Company in the
defense or settlement of original losses under its obligations.

All settlements of losses effected by the Company shall be binding upon the Reinsurers, and
the Reinsurers shall be liable for their proportion thereof.

This Exhibit A is attached to and forms part of the Workers’ Compensation and
General Liability Sixth Excess of Loss Reinsurance Contract issued to LIBERTY MUTUAL
INSURANCE COMPANY and LIBERTY MUTUAL FIRE INSURANCE COMPANY.

EE/ms — 7/6/81

 

 

EXHIBIT B

EXCESS OF LOSS REINSURANCE OF WORKERS’ COMPENSATION

SECTION 1 — COVERAGE

The Reinsurers hereby reinsure the Company in respect of the liability of
the Company, under (1) policies (the premium for which is classified by the Company,
for internal purposes, as “Workers’ Compensation” or “Employers’ Liability”) by which
the Company insures the liability of employers under law or contract which imposes
liability upon such employer for injury, sickness or disease, including death
resulting therefrom, sustained by his employees, and (2) Employers Liability coverage provided under Umbrella
Excess Liability policies.

SECTION 2 — LIMITS OF LIABILITY

The Reinsurers shall be liable for ultimate net loss in excess of the sum of
$30,000,000 of ultimate net loss each and every accident or occurrence in respect of
business the subject matter of this Exhibit, subject to a limit of $15,000,000 on
account of each and every accident or occurrence.

It is also agreed that subrogation expense incurred shall be paid in addition to the
applicable limits of liability set forth in this Section 2, on the basis provided in
Article 4 of the Contract.

SECTION 3 — ULTIMATE NET LOSS

The term “ultimate net loss” as used in this Exhibit means the amount actually paid by the
Company (including but not limited to medical losses, interests, costs and allocated claim expense)
in respect of claims arising from any one accident or occurrence, for which the Company is or may
be found liable, after making proper deductions for amounts paid or due under other reinsurance
(whether collectible or not), subrogation recoveries, overpayments collected, and refunds to the
Company from the New York Aggregate Trust Fund, second injury funds and other such funds; provided,
however, that in the event of the insolvency of the Company, “ultimate net loss” as used in this
Exhibit means the amount of loss (including but not limited to medical losses, interests, costs and
allocated claim expense) in respect of claims arising from any one accident or occurrence which the
Company has incurred or for which it is liable, and payment by the Reinsurers shall be made to the
liquidator, receiver or statutory successor of the Company in

 

 

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accordance with the provisions of Article 8 of this Contract. Expenses for
salaried employees of the Company incurred in litigation and the investigation or
adjustment of claims or suits and subrogation expense referred to in Article 4 shall be
disregarded  in ascertaining ultimate net loss.

This Contract shall protect the Company within the limit hereof in connection with
any loss for which the Company may be legally liable to pay in excess of the limit of its
original policy, where loss in excess of the limit has been incurred because of its
failure to settle within the policy limit or by reason of alleged or actual negligence,
fraud or bad faith in rejecting an offer of settlement or in the preparation of the
defense or in the trial of any action against its insured or in the preparation of
prosecution of an appeal consequent upon such action.

It is agreed that the Company may carry underlying limits of indemnity recoveries under
which shall inure to the sole benefit of the Company and shall be disregarded in computing
the net excess loss in excess of which this Contract attaches.

SECTION 4 — EXCLUSIONS

This Exhibit does not apply:

	A.	 	To excess of loss reinsurance contracts.
	 
	B.	 	To the following occupations, employments or risks (except
when not disclosed to the Company, when incidental to a non-excluded risk (the company to be the sole judge of what is incidental) or when insured
through voluntary or statutory pools or assigned risk plans):

	 	1.	 	The navigation and operation of vessels on the high seas in foreign commerce;
	 
	 	2.	 	Underground coal mining;
	 
	 	3.	 	Fireworks manufacturing;
	 
	 	4.	 	Fuse manufacturing;
	 
	 	5.	 	Explosive risks, viz

	 	(a)	 	Manufacture of any explosive substance
intended for use as an explosive;
	 
	 	(b)	 	Manufacture of any product, other than
Fireworks and Fuses, in which any such
explosive substance is an ingredient;
	 
	 	(c)	 	The loading of any such explosive substance into containers for use as explosive objects, propellant charges or
detonating devices, and the incidental

 

 

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	 	 	 	storage thereof;
	 
	 	(d)	 	Handling transportation or storage of
any such explosive substance intended
solely for war purposes.

	C.	 	To any accident or occurrence as to which the Company is
entitled to recover the full amount of the loss under an insurance policy written on a cost-plus plan, that is to say, a
plan which provides for the payment of the full amount of all
losses, however great, by the policyholder. This exclusion
does not apply to bar recovery from the Reinsurers with respect to accidents or occurrences under retrospectively-rated
policies.
	 
	D.	 	Liability under any Insolvency Fund arising by contract,
operation of law or otherwise, whether voluntary or involuntary. “Insolvency Fund” includes any guaranty fund, insolvency fund, plan, pool,
association, fund or other arrangement, howsoever denominated, established or governed, which
provides for any assessment of or payment or assumption by the
Company of part or all of any claim debt, charge, fee or other
obligation of an insurer, or its successors, or assigns, which
has been declared by any competent authority to be insolvent,
or which has been otherwise deemed unable to meet any claim,
debt, charge, fee or other obligation in whole or in part.

	SECTION 5 — DEFINITIONS

As used in this Exhibit the following terms shall have the meanings stated
herein:

	A.	 	“Policies”. Policies, contracts, endorsements or binders, including but not limited to those by which the Company undertakes to offer and pay “voluntary compensation” benefits,
those by which the Company undertakes to make payments to
augment compensation benefits those by which the Company
affords reinsurance or excess insurance to Workers’ Compensation or Employers’ Liability risks and those by which the
Company undertakes to participate in voluntary or statutory
pools or assigned-risk plans.
	 
	B.	 	“Explosive Substance”. Any substance manufactured for the
express purpose of exploding as differentiated from commodities used industrially and which are only incidentally
explosive —  such as gasoline, celluloid, fuel gases and dye-stuffs.
	 
	C.	 	“Accident or Occurrence.” Any one accident or occurrence or
series of accidents or occurrences arising out of one event
provided that, with respect to disease or death resulting

 

 

-4-

	 	 	therefrom, the terms accident or occurrence and series of accidents or
occurrences shall mean the claim or series of claims occasioned by the disease or diseases having
a common cause or origin. The Company shall be the sole judge of what constitutes disease or
diseases having a common cause or origin. The Company shall assign the claim or series of
claims to a policy year of coverage under any one policy or renewal thereof and will be bound by
the following principles:

	 	1.	 	If the liability is placed solely upon the
employer or insurer as of the date the claimant’s disability commences or becomes manifest
and that date is within a period of coverage under an applicable policy issued by the
Company, the loss shall be deemed to have been sustained by the Company at such date.
	 
	 	2.	 	If assignment is not made on the
basis stated in the preceding subparagraph the claim is to
be assigned to the policy year of the date of
claimant’s last injurious exposure during a
period of coverage under an applicable policy
issued by the Company.

Notwithstanding anything to the contrary above set forth, it is agreed
that the date of the loss occurrence for the purpose of this reinsurance
shall be deemed to be the inception, anniversary or renewal date of
the Company’s original policy. Losses occurring under a policy in-force at
December 31, 1980 shall be assigned to this Agreement to the extent such
losses are not assignable to the 1980 Contract year.

Notwithstanding the foregoing, where a policyholder requests
that it be issued two or more policies in circumstances where
applicable manual rules permit the issuance of a single policy
such policies shall be regarded as a single policy for purposes of assigning disease claims to a policy year coverage.

“Policy year” shall mean each separate original policy period
of not exceeding twelve months commencing at the inception,
anniversary or renewal date on or after the inception of this
Agreement.

SECTION 6 — NOTICE TO REINSURERS

As soon as practicable after it appears probable that the
Company’s ultimate net loss on account of any one accident or occurrence will exceed the amount
above which the Reinsurers are liable under this

 

 

-5-

Exhibit, the Company shall notify the Reinsurers and provide them full information relative
thereto, and copies of all papers that may be desired by them, and the Reinsurers shall be
given every opportunity to participate in the defense of any such suit, proceeding or claim at
their own expense.

SECTION 7 — PAYMENT BY THE COMPANY

The Company shall be the sole judge as to what claims are covered
under its policies, as to the liability of the Company therefor and
as to the amounts which the Company should pay thereon, and the
Reinsurers shall be bound by the judgement of the Company as to
such matters.

All settlements of losses effected by the Company shall be binding
upon the Reinsurers, and the Reinsurers shall be liable for their
proportion thereof.

SECTION 8 — CLAIMS AGAINST REINSURERS

The Company shall, after it has paid any amount of ultimate net
loss for which the Reinsurers may be liable under this Exhibit, submit to the Reinsurers
a definite claim for such amount. If any subsequent losses shall be paid by the Company on
account of the same accident or occurrence, additional claims hereunder shall be similarly made from time
to time. Losses shall be due and payable by the Reinsurers within fifteen days after
claim hereunder is proved.

All salvages, recoveries and payments recovered or received subsequent to a loss
settlement under this Exhibit shall be applied as if recovered or received prior to the said
settlement and all necessary adjustments shall be made by the parties hereto.

SECTION 9 — COMMUTATION

Within 48 months from the expiration of each annual period of this
Contract the Company shall submit a statement to the Reinsurers
listing amounts paid and reserved for all Workers’ Compensation
claims under this Agreement. This statement shall form the basis
of an agreed value for all such losses. The amounts of reserves
contained therein shall be calculated in accordance with the
following criteria:

	 	1.	 	Mortality assumptions will be calculated from the
latest available United States census tables as follows:

 

 

-6-

Survivor
Benefits  —  Total Females

Disability Benefits  —  Total Males

	 	2.	 	The annual interest discount percentage shall be
an average (rounded to the nearest one-half percentage point) of the before-tax yields of the
Company’s investment purchases for the three latest available calendar years.
	 
	 	3.	 	Remarriage expectations will be in accordance with the assumptions used by the National Council
on Compensation Insurance in its statistical tables.
	 
	 	4.	 	For all future medical costs, and annuity calculation shall be based upon the Company’s
evaluation of long term medical care and rehabilitation requirements, using an annual discount
of 0% and an annual escalation of 0%.

The above criteria shall not apply to losses with future escalation
of indemnity benefits as described below:

	 	1.	 	Annuity values for “index-linked” benefits shall be
calculated based upon an annual discount of 0% and
an annual escalation of 0%.
	 
	 	2.	 	For “index-linked” benefits, remarriage
expectations will not be used.

Except as may be mutually agreed for specific losses, these calculations shall be
considered the final and agreed value of all
known workers’ compensation losses for the applicable annual period
of this Contract. A resulting payment, if any, shall be accepted
by the Company in full settlement of the Reinsurers’ liability for
all such losses. In the event that a workers’ compensation loss is
not reported to the Company until after the Company’s statement has
been submitted, immediate notice of such loss shall be given to the
Reinsurers in order than an agreed present value may be determined.

SECTION 10 — TWO PERSON WARRANTY

No loss shall be recoverable unless at least two employees of one  or more insureds are
involved in the same accident or occurrence or series of accidents or occurrences
originating from one event and the payments to at least two employees are more than $50,000
each. This Warranty does not apply to Employers Liability Coverage.

This Exhibit B is attached to and forms part of the Workers’ Compensation and General
Liability Sixth Excess of Loss
Reinsurance Contract issued to LIBERTY MUTUAL INSURANCE COMPANY and LIBERTY MUTUAL FIRE
INSURANCE COMPANY.

EE/ms — 7/6/81

 

 

NUCLEAR INCIDENT EXCLUSION CLAUSE — LIABILITY — REINSURANCE

	(1)	 	This Agreement does not cover any loss or liability accruing to the
Reassured as a member of, or subscriber to, any association of insurers
or reinsurers formed for the purpose of covering nuclear energy risks
or as a direct or indirect reinsurer of any such member, subscriber
or association.
	 
	(2)	 	Without in any way restricting the operation of paragraph (1) of this
Clause it is understood and agreed that for all purposes of this
Agreement all the original policies of the Reassured (new, renewal and
replacement) of the classes specified in Clause II of this paragraph (2)
from the time specified in Clause III in this paragraph (2) shall be
deemed to include the following provision (specified as the Limited
Exclusion Provision):
	 
	 	 	Limited Exclusion Provision.

	 	I.	 	It is agreed that the policy does not apply under any
liability
coverage, to injury, sickness, disease, death or destruction
with respect to which an insured under the policy is also an
insured under a nuclear energy liability policy issued by Nuclear
Energy Liability Insurance Association, Mutual Atomic Energy
Liability Underwriters or Nuclear Insurance Association of Canada,
or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability.
	 
	 	II.	 	Family Automobile Policies (liability only), Special
Automobile
Policies (private passenger automobiles, liability only), Farmers
Comprehensive Personal Liability Policies (liability only),
Comprehensive Personal Liability Policies (liability only) or
policies of a similar nature; and the liability portion of combination forms related to the four classes of policies stated
above, such as the Comprehensive Dwelling Policy and the
applicable types of Homeowners Policies.
	 
	 	III.	 	The inception dates and thereafter of all original
policies as described in II above, whether new, renewal or replacement,
being policies which either

	 	(a)	 	become effective on or after 1st May, 1960, or
	 
	 	(b)	 	become effective before that date and
contain the Limited
Exclusion Provision set out above;

provided this paragraph (2) shall not be applicable to Family
Automobile Policies, Special Automobile Policies, or policies
or combination policies of a similar nature, issued by the
Reassured on New York risks, until 90 days following approval
of the Limited Exclusion Provision by the Governmental
Authority having jurisdiction thereof.

 

 

-2-

	(3)	 	Except for those classes of policies specified in clause II of paragraph (2)
and without in any way restricting the operation of paragraph (1) of this Clause,
it is understood and agreed that for all purposes of this Agreement the original
liability policies of the Reassured (new, renewal and replacement) affording the
following coverages:

Owners, Landlords and Tenants Liability, Contractual Liability, Elevator
Liability, Owners or Contractors (including railroad) Protective
Liability, Manufacturers and Contractors Liability, Product Liability,
Professional and Malpractice Liability, Storekeepers Liability, Garage
Liability, Automobile Liability (including Massachusetts Motor Vehicle or
Garage Liability)

shall be deemed to include, with respect to such coverages, from the time
specified in Clause V of this paragraph (3), the following provision (specified
as the Broad Exclusion Provision):

Broad Exclusion Provision.

It is agreed that the policy does not apply:

	 	I.	 	Under any Liability Coverage, to injury, sickness, disease, death
or destruction

	 	(a)	 	with respect to which an insured under the
policy is also an insured under a nuclear energy liability policy issued by
Nuclear Energy Liability Insurance Association, Mutual Atomic
Energy Liability Underwriters or Nuclear Insurance Association
of Canada, or would be an insured under any such policy but for
its termination upon exhaustion of its limit of liability; or
	 
	 	(b)	 	resulting from the hazardous properties of
nuclear material
and with respect to which (1) any person or organization is
required to maintain financial protection pursuant to the
Atomic Energy Act of 1954, or any law amendatory thereof, or
(2) the insured is, or had this policy not been issued would
be, entitled to indemnity from the United States of America,
or any agency thereof, under any agreement entered into by
the United States of America, or any agency thereof, with
any person or organization.

	 	II.	 	Under any Medical Payments Coverage, or under any
Supplementary Payments Provision relating to immediate medical or
surgical relief, to expenses incurred with respect to bodily injury,
sickness, disease or death resulting from the hazardous properties
of nuclear material and arising out of the operation of a nuclear
facility by any person or organization.
	 
	 	III.	 	Under any Liability Coverage, to injury, sickness,
disease, death
or destruction resulting from the hazardous properties of nuclear
material, if

	 	(a)	 	the nuclear material (1) is at any nuclear
facility owned by, or operated by or on behalf of,
an insured or (2) has been discharged or dispersed
therefrom;

 

 

-3-

	 	(b)	 	the nuclear material is contained in spent
fuel or waste at
any time possessed, handled, used, processed, stored, transported or disposed of by or on behalf of an insured; or
	 
	 	(c)	 	the injury, sickness, disease, death or
destruction arises
out of the furnishing by an insured of services, materials,
parts or equipment in connection with the planning,
construction, maintenance, operation or use of any
nuclear facility, but if such facility is located within
the United States of America, its territories or possessions or Canada, this exclusion (c) applies only to
injury to or destruction of property at such nuclear
facility.

	 	IV.	 	As used in this endorsement:

	 	 	 	“hazardous properties” include radioactive, toxic or explosive
properties; “nuclear material” means source material, special
nuclear material or byproduct material; “source material”,
“special nuclear material”, and “byproduct material” have the
meanings given them in the Atomic Energy Act of 1954 or in any law
amendatory thereof; “spent fuel” means any fuel element or fuel
component, solid or liquid, which has been used or exposed to
radiation in a nuclear reactor; “waste” means any waste material
(1) containing byproduct material and (2) resulting from the
operation by any person or organization of any nuclear facility
included within the definition of nuclear facility under paragraph
(a) or (b) thereof; “nuclear facility” means

	 	(a)	 	any nuclear reactor,
	 
	 	(b)	 	any equipment or device designed or used
for (1) separating
the isotopes of uranium or plutonium, (2) processing or
utilizing spent fuel, or (3) handling, processing or packaging waste,
	 
	 	(c)	 	any equipment or device used for the
processing, fabricating
or alloying of special nuclear material if at any time the
total amount of such material in the custody of the insured
at the premises where such equipment or device is located
consists of or contains more than 25 grams of plutonium or
uranium 233 or any combination thereof, or more than 250
grams of uranium 235,
	 
	 	(d)	 	any structure, basin, excavation, premises
or place prepared
or used for the storage or disposal of waste, 

	 	 	 	and includes the site on which any of the foregoing is located,
all operations conducted on such site and all premises used for
such operations; “nuclear reactor” means any apparatus designed
or used to sustain nuclear fission in a self-supporting chain
reaction or to contain a critical mass of fissonable material;
	 
	 	 	 	With respect to injury to or destruction of property, the word
“injury” or “destruction” includes all forms of radioactive
contamination of property.

 

 

-4-

	 	V.	 	The inception dates and thereafter of all original policies
affording coverages specified in this paragraph (3), whether new,
renewal or replacement, being policies which either

	 	(a)	 	become effective on or after 1st May, 1960, or
	 
	 	(b)	 	become effective before that date and contain
the Broad Exclusion Provision set out above;

	 	 	 	provided this paragraph (3) shall not be applicable to

	 	(i)	 	Garage and Automobile Policies issued by the
Reassured on New York risks, or
	 
	 	(ii)	 	statutory liability insurance required
under Chapter 90, General Laws of Massachusetts,

	 	 	 	until 90 days following approval of the Broad Exclusion Provision by the
Governmental Authority having jurisdiction thereof.
	 
	 	 	 	It is further provided that original liability policies affording coverages
described in this paragraph (3), (other than those policies and coverages
described in (i) and (ii) above), which become effective before 1st May,
1960, and do not contain the Broad Exclusion Provision set out above, but
which contain the Broad Exclusion Provision set out in N.M.A. 1118, shall be
construed as if incorporating such portions of the Broad Exclusion Provision
set out above as are more liberal to the holders of such policies.

	(4)	 	Without in any way restricting the operation of paragraph (1) of this clause
it is understood and agreed that original liability policies of the Reassured,
for those classes of policies

	 	(a)	 	described in Clause II of paragraph (2)
effective before 1st June, 1958, or
	 
	 	(b)	 	described in paragraph (3) effective before 1st March, 1958,

	 	 	shall be free until their natural expiry dates or 1st June, 1963, whichever first occurs,
from the application of the other provisions of this Clause.

	(5)	 	Without in any way restricting the operation of paragraph (1) of this Clause,
it is understood and agreed that paragraphs (2) and (3) above are not
applicable to original liability policies of the Reassured in Canada and
that with respect to such policies this Clause shall be deemed to include
the Nuclear Energy Liability Exclusion Provisions actually used on such
policies by the Reassured; provided that if the Reassured shall fail to
include such Exclusion Provisions in any such policy where it is legally
permitted to do so, such policy shall be deemed to include such Exclusion
Provisions.

 

 

NUCLEAR
INCIDENT EXCLUSION CLAUSE — PHYSICAL DAMAGE — REINSURANCE

(Wherever the word “Reassured” appears in this clause, it shall be deemed
to read “Reassured”, “Reinsured”, “Company”, or whatever other word is
employed throughout the text of the reinsurance agreement to which this
clause is attached to designate the company or companies
reinsured.)

     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 lost or liability accruing to the Reassured, directly or indirectly and
whether as Insurer or Reinsurer,
from any insurance against Physical Damages (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 or nuclear installation,
or
	 
	 	(b)	 	where said insurance contains a provision excluding coverage for
damage to property caused by or
resulting from radioactive contamination, however caused. However on and after 1st
January 1960 this sub-paragraph (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 paragraphs (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.

     5. It 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.

     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.

12/12/57

 

 

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

WORKERS’ COMPENSATION AND GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

INTERESTS AND LIABILITIES AGREEMENT

IT IS HEREBY MUTUALLY AGREED, by and between LIBERTY MUTUAL INSURANCE COMPANY and LIBERTY MUTUAL
FIRE INSURANCE COMPANY, Boston, Massachusetts (hereinafter called the “Company”) of the one part,
and the undersigned Reinsurer (hereinafter called the “Reinsurer”) of the other part, that the
Reinsurer shall have a 2.50% share in the Interests and Liabilities of the “Reinsurers” as set
forth in the document attached hereto. The share of the Reinsurer shall be separate and apart from
the shares of the other Reinsurers, and shall not be joint with those of the other Reinsurers, and
the Reinsurer shall in no event participate in the Interests and Liabilities of the other
Reinsurers.

The premium for this reinsurance shall be the Reinsurer’s percentage share of the premium
provided under Article 3 of the attached document, and shall be payable as herein provided.

This Agreement shall be effective Midnight, December 31, 1980 and shall remain in full force unless
terminated in accordance with the termination provisions of Article 14 of the attached document.

IN WITNESS WHEREOF the parties hereto, by their respective duly authorized officers, have executed
this Agreement, in duplicate, as of the dates undermentioned.

At Boston Massachusetts this 28th day of July, 1981

	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY
	 	 	LIBERTY MUTUAL FIRE INSURANCE COMPANY
	 
	 	 	 	 
	 

	 	BY:
	 	/s/
	 

	 	 	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT
	 
	 	 	 	 
	and at New York, New York this 17th day of August, 1981
	 
	 	 	 	 
	 	 	AGF REINSURANCE CORPORATION OF THE U.S.
	 
	 	 	 	 
	 

	 	BY:
	 	/s/
	 

	 	 	 	 
	 

	 	TITLE:
	 	Asst. Sec.

EE/ms — 7/6/81

 

 

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

WORKERS’ COMPENSATION AND GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

INTERESTS AND LIABILITIES AGREEMENT

IT IS HEREBY MUTUALLY AGREED, by and between LIBERTY MUTUAL INSURANCE COMPANY and LIBERTY
MUTUAL FIRE INSURANCE COMPANY, Boston, Massachusetts (hereinafter called the “Company”) of the one
part, and the undersigned Reinsurer (hereinafter called the “Reinsurer”) of the other part, that
the Reinsurer shall have a 2.00% share in the Interests and Liabilities of the “Reinsurers” as set
forth in the document attached hereto. The share of the Reinsurer shall be separate and apart from
the shares of the other Reinsurers, and shall not be joint with those of the other Reinsurers, and
the Reinsurer shall in no event participate in the Interests and Liabilities of the other
Reinsurers.

The premium for this reinsurance shall be the Reinsurer’s percentage share of the premium
provided under Article 3 of the attached document, and shall be payable as herein provided.

This
Agreement shall be effective Midnight, December 31, 1980 and shall remain in full force unless
terminated in accordance with the termination provisions of Article 14 of the attached document.

IN WITNESS WHEREOF the parties hereto, by their respective duly authorized officers, have executed
this Agreement, in duplicate, as of the dates undermentioned.

At Boston Massachusetts this 28th day of July, 1981

	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY 
LIBERTY
MUTUAL FIRE INSURANCE COMPANY
	 
	 	 	 	 
	 

	 	BY:
	 	/s/
	 

	 	 	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT
	 
	 	 	 	 
	and at Boston, Massachusetts this 27th day of August, 1981
	 
	 	 	 	 
	 	 	THE CONNECTICUT INDEMNITY COMPANY

Through: MASSACHUSETTS REINSURANCE CORPORATION
	 
	 	 	 	 
	Mass Re Treaty No. 113A — 02A

	 	BY:
	 	/s/ David Forrest
	 

	 	 	 	 
	 

	 	
	 	DAVID FORREST
	 

	 	TITLE:	 	VICE PRESIDENT

EE/ms — 7/6/81

 

 

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

WORKERS’ COMPENSATION AND GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

INTERESTS AND LIABILITIES AGREEMENT

IT IS HEREBY MUTUALLY AGREED, by and between LIBERTY MUTUAL INSURANCE COMPANY and LIBERTY
MUTUAL FIRE INSURANCE COMPANY, Boston, Massachusetts (hereinafter called the “Company”) of the
one part, and the undersigned Reinsurer (hereinafter called the “Reinsurer”) of the other part,
that the Reinsurer shall have a 1.67% share in the Interests and Liabilities of the
“Reinsurers” as set forth in the document attached hereto. The share of the Reinsurer shall be
separate and apart from the shares of the other Reinsurers, and shall not be joint with those of
the other Reinsurers, and the Reinsurer shall in no event participate in the Interests and
Liabilities of the other Reinsurers.

The premium for this reinsurance shall be the Reinsurer’s percentage share of the premium
provided under Article 3 of the attached document, and shall be payable as herein provided.

This Agreement shall be effective Midnight, December 31, 1980 and shall remain in full force
unless terminated in accordance with the termination provisions of Article 14 of the attached
document.

IN WITNESS WHEREOF the parties hereto, by their respective duly authorized officers, have
executed this Agreement, in duplicate, as of the dates undermentioned.

At Boston Massachusetts this 28th day of July, 1981

	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY
 LIBERTY
MUTUAL FIRE INSURANCE COMPANY
	 
	 	 	 	 
	 

	 	BY:
	 	/s/
	 

	 	 	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT
	 
	 	 	 	 
	and at New York, New York this 3rd day of SEPT, 1981
	 
	 	 	 	 
	FOR AND ON BEHALF OF THE WOREXCO
	 	 	 	 
	CORPORATION SYNDICATE MEMBERS AS 
	 	WOREXCO CORPORATION
	THEIR INTEREST APPEAR ON THE 
	 	 	 	 
	ATTACHED MEMBERS LIST.
	 	 	 	 
	

	 	BY:
	 	/s/ John R. Grossi
	 

	 	 	 	 
	 

	 	TITLE:
	 	JOHN R. GROSSI
 VICE PRESIDENT

EE/ms — 7/6/81

 

 

WOREXCO CORPORATION SYNDICATE MEMBERS LIST

Attached to and forming part

of Agreement No. 1506/1507 (WOREXCO)

LIBERTY MUTUAL INSURANCE COMPANY

5th, 6th CASUALTY EXCESS

As respects loss occurrences taking place on or after MIDNIGHT DECEMBER 31, 1980, the
list of Syndicate Members constituting the Reinsurers and the respective proportions of the
liability assumed severally and not jointly by them under this Agreement shall be as follows:

	 	 	 	 	 

	American Overseas Reinsurance Company

	 	 	55.0	%
	Metropolitan Reinsurance Company

	 	 	10.0	%
	Potomac Insurance Company

	 	 	10.0	%
	Providence Washington Insurance Company

	 	 	7.5	%
	Highlands Insurance Company

	 	 	5.0	%
	Taisho Marine and Fire Insurance Company, Ltd. (U.S. Branch)

	 	 	5.0	%
	Tokio Marine and Fire Insurance Company, Ltd. (U.S. Branch)

	 	 	5.0	%
	The Connecticut Indemnity Company

	 	 	2.5	%
	 

	 	 	 	 
	 

	 	 	100.0	%

	 	 	 	 	 	 	 

	 	 	WOREXCO CORPORATION

Underwriting Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ John R. Grossi
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	JOHN R. GROSSI—VICE PRESIDENT	 	 
	 

	 	DATE:
	 	SEPT. 3, 1981	 	 

WOR U-1008 (1-80)

 

 

RE5986G

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

WORKERS’ COMPENSATION AND GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

INTERESTS AND LIABILITIES AGREEMENT

IT IS HEREBY MUTUALLY AGREED, by and between LIBERTY MUTUAL INSURANCE COMPANY and LIBERTY MUTUAL
FIRE INSURANCE COMPANY, Boston, Massachusetts (hereinafter called the “Company”) of the one part,
and the undersigned Reinsurer (hereinafter called the “Reinsurer”) of the other part, that the
Reinsurer shall have a
1.00% share in the Interests and Liabilities of the “Reinsurers” as set forth in the document
attached hereto. The share of the Reinsurer shall be separate and apart from the shares of the
other Reinsurers, and shall not be joint with those of the other Reinsurers, and the Reinsurer
shall in no event participate in the Interests and Liabilities of the other Reinsurers.

The premium for this reinsurance shall be the Reinsurer’s percentage share of the premium
provided under Article 3 of the attached document, and shall be payable as herein provided.

This Agreement shall be effective Midnight, December 31, 1980 and shall remain in full force unless
terminated in accordance with the termination provisions of Article 14 of the attached document.

IN WITNESS WHEREOF the parties hereto, by their respective duly authorized officers, have executed
this Agreement, in duplicate, as of the dates undermentioned.

At Boston Massachusetts this 28th day of July, 1981

	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY 

LIBERTY MUTUAL
FIRE INSURANCE COMPANY
	 
	 	 	 	 
	 

	 	BY:	 	/s/
	 

	 	 	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT

and at
Paris, France this 29th day of January, 1982

ABEILLE — PAIX REASSURANCES, PARIS.

	 	 	 	 	 

	 	 	ABEILLE-PAIX
RÉASSURANCES
GROUPE VICTOIRE
11, Rue de la
Rochefoucauld
75442 PARIS CEDEX 09
Le Sous-Directeur,
	 
	 	 	 	 
	 

	 	BY:
	 	/s/
	 

	 	 	 	 
	 

	 	TITLE:
	 	 

EE/ms — 7/6/81

 

 

RE5986G

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

WORKERS’ COMPENSATION AND GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

INTERESTS AND LIABILITIES AGREEMENT

IT IS HEREBY MUTUALLY AGREED, by and between LIBERTY MUTUAL INSURANCE COMPANY and LIBERTY MUTUAL
FIRE INSURANCE COMPANY, Boston, Massachusetts (hereinafter called the “Company”) of the one part,
and the undersigned Reinsurer (hereinafter called the “Reinsurer”) of the other part, that the
Reinsurer shall have a 0.99% share in the Interests and Liabilities of the “Reinsurers” as set
forth in the document attached hereto. The share of the Reinsurer shall be separate and apart from
the shares of the other Reinsurers, and shall not be joint with those of the other Reinsurers, and
the Reinsurer shall in no event participate in the Interests and Liabilities of the other
Reinsurers.

The premium for this reinsurance shall be the Reinsurer’s percentage share of the premium
provided under Article 3 of the attached document, and shall be payable as herein
provided.

This Agreement shall be effective Midnight, December 31, 1980 and shall remain in full force unless
terminated in accordance with the termination provisions of Article 14 of the attached document.

IN WITNESS WHEREOF the parties hereto, by their respective duly authorized officers, have executed
this Agreement, in duplicate, as of the dates undermentioned.

At Boston Massachusetts this 28th day of July, 1981

	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY
	 	 	LIBERTY MUTUAL FIRE INSURANCE COMPANY
	 
	 	 	 	 
	 

	 	BY:
	 	/s/
	 

	 	 	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT

and at London this 23rd day of October, 1981

FOLKSAM INTERNATIONAL INSURANCE COMPANY (U.K.) LTD.

	 	 	 	 	 

	 	 	FOLKSAM

	 	 	International Ins. Co. (U.K.) Ltd.

	 
	 	 	 	 
	 

	 	BY:
	 	/s/
	 

	 	 	 	 
	 

	 	TITLE:
	 	Executive Director

EE/ms — 7/6/81

 

 

RE5986G

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

WORKERS’ COMPENSATION AND GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

INTERESTS AND LIABILITIES AGREEMENT

IT IS HEREBY MUTUALLY AGREED, by and between LIBERTY MUTUAL INSURANCE COMPANY and LIBERTY MUTUAL
FIRE INSURANCE COMPANY, Boston, Massachusetts (hereinafter called the “Company”) of the one part,
and the undersigned Reinsurer (hereinafter called the “Reinsurer”) of the other part, that the
Reinsurer shall have a 2.50% share in the Interests and Liabilities of the “Reinsurers” as set
forth in the document attached hereto. The share of the  Reinsurer shall be separate and apart
from the shares of the other Reinsurers, and shall not be joint with those of the other
Reinsurers, and the Reinsurer shall in no event participate in the Interests and Liabilities of
the other Reinsurers.

The premium for this reinsurance shall be the Reinsurer’s percentage share of the premium
provided under Article 3 of the
attached document, and shall be payable as herein provided.

This Agreement shall be effective Midnight, December 31, 1980 and shall remain in full
force unless terminated in accordance with the termination provisions of Article 14 of the
attached document.

IN WITNESS WHEREOF the parties hereto, by their respective duly authorized officers, have
executed this Agreement, in duplicate, as of the dates undermentioned.

At Boston Massachusetts this 28th day of July, 1981

	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY 
LIBERTY MUTUAL
FIRE INSURANCE COMPANY
	 
	 	 	 	 
	 

	 	BY:
	 	/s/
	 

	 	 	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT

and at Paris this 9th day of November, 1981

ANCIENNE MUTUELLE REASSURANCE S.A. DE REASURANCE

ET D’ASSURANCE, PARIS.

	 	 	 	 	 

	 	 	MP/No=17588 -

	 	 	

	 
	 	 	 	 
	 

	 	BY:	 	/s/
	 

	 	 	 	 
	 

	 	TITLE:	 	 

EE/ms — 7/6/81

 

 

 

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

WORKERS’ COMPENSATION AND GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

PREAMBLE

The Reinsurers hereby reinsure the Company to the extent and on the terms and conditions and
subject to the exceptions, exclusions and limitations hereinafter set forth.

ARTICLE 1 — EXHIBITS COVERED

The Company shall reinsure with the Reinsurers and the Reinsurers shall accept reinsurance
from the Company as set forth in Exhibits “A” and “B”, which are attached hereto and made part of
this Contract, such Exhibits being entitled for purposes of identification as follows:

     Exhibit “A” Excess of Loss Reinsurance of General Liability

     Exhibit “B” Excess of Loss Reinsurance
of Workers’ Compensation

ARTICLE 2 — RETENTION BY COMPANY

This Contract applies only to such portion of any obligation of the Company as the Company retains
net for its own account, and in calculating the amount of any loss hereunder and in computing the
amount or amounts in excess of which this Contract attaches only loss or losses in respect to that
portion of any obligation which the Company retains net for its own account shall be included.

It is agreed that the amount or amounts of the Reinsurers’ liability hereunder in respect of any
losses shall not be increased by reason of the inability of the Company to collect from any other
Reinsurers whether specific or general, any amount or amounts which may have become due from them
whether such inability arises from the insolvency of such other Reinsurers of otherwise.

ARTICLE 3 — REINSURANCE PREMIUM

	(a)	 	The Reinsurers’ premium for the reinsurance provided under this Contract shall be computed
by the application of a rate

 

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	 	 	of .003% to the Company’s net premium written on the business covered under Exhibits “A” and “B”
subject to an annual minimum premium of $57,000 and an annual deposit premium of $64,000 for the
combined Sixth Excess of Loss layer provided under Exhibits “A” and “B”.
	 
	(b)	 	The deposit premium as provided for in (a) above shall be payable to Reinsurers in four equal
quarterly installments at the beginning of each calendar quarter. The Company shall undertake
to furnish Reinsurers at the conclusion of each year a report of the net premiums written
during such year. The difference between the annual deposit premium paid and the annual
developed reinsurance premium for the Sixth Excess of Loss Reinsurance under Exhibits “A” and
“B” computed in accordance with the provisions of (a) above shall be promptly paid by the
debtor party.
	 
	(c)	 	The term “net premium written” shall mean gross premiums written by the Company on the
business covered hereunder less return premiums for cancellations and reductions and less
premiums on reinsurance which inures to the benefit of the Reinsurers. No deduction shall be
made for dividends declared, paid or credited to policyholders of the Company.

ARTICLE 4 — SUBROGATION

The Company hereby agrees to enforce such subrogation rights as it may obtain by virtue of
payments made under its policies, but in case the Company shall refuse or neglect to do so, the
Reinsurers are hereby authorized and empowered to bring any appropriate action in the name of the
Company or its policyholders or otherwise to enforce such rights.

The expense of any subrogation proceedings brought by the Company or the Reinsurers to enforce such
rights shall be apportioned between the Company and the Reinsurers in the ratio of their respective
interests in the total subrogation recovery but in the event there is a failure to make a
subrogation recovery the expense of the proceedings shall be apportioned between the Company and
the Reinsurers in the ratio of their respective interests in the total loss.

All subrogation recoveries made by either party subsequent to payments made by the Reinsurers under
this Contract shall be applied as if made prior to said payments and all necessary adjustments
shall be made between the Company and the Reinsurers as soon as practicable after said subrogation
recovery is made.

The Company shall have the right, before the happening of the accident or occurrence to waive its
right of subrogation.

 

-3-

ARTICLE 5 — TAX CLAUSE

In consideration of the terms under which this Contract is issued, the Company undertakes not to
claim any deduction in respect of the premium hereon when making tax returns, other than Income or
Profits tax returns to any State or to the District of Columbia.

ARTICLE 6 — PAYMENTS UNDER THIS CONTRACT

All amounts due to either party hereunder shall be payable in United States currency.

ARTICLE 7 — ACCESS TO RECORDS

The Reinsurers or their duly appointed representatives shall at reasonable times, have free
access to all books and records of the Company and of its agents or attorneys for the purpose of
obtaining any further information concerning this reinsurance or the subject matter hereof.

ARTICLE 8 — INSOLVENCY CLAUSE

The reinsurance provided by this Contract shall be payable by the Reinsurers directly to the
Company or to its liquidator, receiver or statutory successor on the basis of the liability of the
Company under the contracts reinsured without diminution because of the insolvency of the Company.
In the event of the insolvency of the Company, the liquidator or receiver or statutory successor of
the Company shall give written notice of the pendency of each claim against the Company on a policy
or bond reinsured within a reasonable time after such claim is filed in the insolvency proceeding;
and during the pendency of such claim, the Reinsurers may investigate such claim and interpose, at
their own expense, in the proceeding where such claim is to be adjudicated any defense or defenses
which it may deem available to the Company, its liquidator or receiver or statutory succesor. The
expense thus incurred by the Reinsurers shall be chargeable, subject to court approval, against the
Company as a part of the expense of liquidation to the extent of such proportionate share of the
benefit as shall accrue to the Company solely as a result of the defense undertaken by the
Reinsurers.

The reinsurance shall be payable as hereinbefore in the above paragraph provided except as
otherwise provided by Section 315 (relating to Fidelity and Surety Risks) of the Insurance Law of
New York or except (a) where the Contract specifically provides another payee of such reinsurance
in the event of the insolvency of the

 

-4-

Company and (b) where the Reinsurers with the consent of the direct insured or insureds have
assumed such policy obligations of the Reinsurers to the payees under such policies and in
substitution for the obligations of the Company to such payees.

ARTICLE 9 — ARBITRATION

As a condition precedent to any right of action hereunder, any dispute arising out of this
Agreement shall be submitted to the decision of a board of arbitration of two arbitrators and an
umpire, meeting in Boston, Massachusetts unless otherwise agreed.

The members of the board of arbitration shall be active or retired disinterested officials of
insurance or reinsurance companies, or Lloyds Underwriters. Each party shall appoint its arbitrator
and the two arbitrators shall choose an umpire before instituting the hearing. In the event that
either party should fail to choose an arbitrator within thirty (30) days following a written
request by the other party to enter upon arbitration, the requesting party may choose two
arbitrators who shall in turn choose an umpire before entering upon arbitration. In the event the
two arbitrators fail to agree on an umpire either party shall have the right to submit the matter
to the American Arbitration Association in effect at that time.

Each party shall present its case to the arbitrators within sixty (60) days following the date of
their appointment. The board shall make its decision with regard to the custom and usage of the
insurance and reinsurance business. The board shall issue its decision in writing based upon a
hearing in which evidence may be introduced without following strict rules of evidence but in which
cross examination and rebuttal shall be allowed. The board shall make its decision within 60 days
following the termination of the hearings unless the parties consent to an extension. The majority
decision of the board shall be final and binding upon all parties to the proceeding. Judgement may
be entered upon the award of the board in any court having jurisdiction thereof.

If more than one Reinsurer is involved in the same dispute, all such Reinsurers shall constitute
and act as one party for purposes of this clause and communications shall be made by the Reassured
to each of the Reinsurers constituting the one party, provided, however, that nothing therein shall
impair the rights of such Reinsurers to assert several, rather than joint, defenses or claims, nor
be construed as changing the liability of the Reinsurers under the terms of this Agreement from
several to joint.

Each party shall bear the expense of its own arbitrator and shall jointly and equally bear with the
other party the expense of the

 

-5-

umpire. The remaining costs of the arbitration proceedings shall be allocated by the board.

ARTICLE 10 — OFFSET CLAUSE

Each party hereto shall have, and may exercise at any time and from time to time, the right to
offset any balances, whether on account of premiums or on account of losses or otherwise, due from
such party to the other (or, if more than one, any other) party hereto under this Contract or under
any other reinsurance agreement heretofore or hereafter entered into by and between them, and may
offset the same against any balance or balances due or to become due to the former from the latter
under the same or any other reinsurance agreement between them; and the party asserting the right
of offset shall have and may exercise such right whether the balance or balances due or to become
due to such party from the other are on account of premiums or on account of losses or otherwise
and regardless of the capacity, whether as assuming insurer or as ceding insurer, in which each
party acted under the agreement or, it more than one, the different agreements involved.

ARTICLE 11 — ADVANCES

If the Reinsurer is unauthorized in any State of the United States of America or the District of
Columbia where authorization is required by insurance regulatory authorities, the Reinsurers will
fund (provided particulars are received forty-five days prior to the date funding is required by
the Company) outstanding losses by either cash advances, escrow accounts for the benefit of the
Company, Letters of Credit, or a combination thereof, if a penalty would accrue to the Company on
its statement without such funding. The Reinsurers shall have the sole option of determining the
method of funding referred to above provided it is acceptable to the insurance regulatory
authorities involved.

LOSS RESERVES: (U.S. Dollar Reinsurance Letter of Credit) (Applies only to those Reinsurers
who are domiciled outside the United States of America who cannot qualify for credit by the State
having jurisdiction over the Company’s loss reserves).

As regards policies or bonds issued by the Company coming within the scope of this Contract, the
Company agrees that when it shall file with the Insurance Department or set up on its books
reserves for losses covered hereunder which it shall be required to set up by law it will forward
to the Reinsurers a statement showing the proportion of such loss reserves which is applicable to
them. The Reinsurers hereby agree that they will apply for and secure delivery to the Company a
clean irrevocable Letter of Credit issued

 

-6-

by Citibank N.A. in an amount equal to Reinsurers’ proportion of said loss reserves.

The Company undertakes to use and apply any amounts which it may draw upon such Credit pursuant to
the terms of the Contract under which the Letter of Credit is held, and for the following purposes
only:

	 	A.	 	To pay the Reinsurers’ share or to reimburse the Company for the Reinsurers’ share of any
liability for loss reinsured by this Contract.
	 
	 	B.	 	To make refund of any sum which is in excess of the actual amount required to pay Reinsurers’
share of any liability reinsured by this Contract.

Citibank N.A. shall have no responsibility whatsoever in connection with the propriety of
withdrawals made by the Company or the disposition of funds withdrawn, except to see that
withdrawals are made only upon the order of properly authorized representatives of the Company.

ARTICLE 12 — SERVICE OF SUIT

This Article applies only to other than Domestic Reinsurers.

In the event of the failure of the Reinsurers to pay any amount claimed to be due hereunder, the
Reinsurers, at the request of the Company, will submit to the jurisdiction of any court of
competent jurisdiction within the United States and will comply with all requirements necessary to
give such court jurisdiction and all matters arising hereunder shall be determined in accordance
with the law and practice of such court.

Service of process in such suit may be made upon Messrs. Mendes and Mount, Three Park Avenue, New
York, New York 10016 and that in any suit instituted, the Reinsurers will abide by the final
decision of such court or of any appellate court in the event of an appeal.

The above-named are authorized and directed to accept service of process on behalf of the
Reinsurers in any such suit and/or upon the request of the Company to give a written undertaking to
the Company that they will enter a general appearance upon the Reinsurers’ behalf in the event such
a suit shall be instituted.

Further, pursuant to any statute of any state, territory or district of the United States which
makes provisions therefore, the Reinsurers hereby designate the Superintendent, Commissioner or
Director of Insurance or other officer specified for that purpose

 

-7-

in the statute, or his successor or successors in office, as their true and lawful attorney upon
whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf
of the Company or any beneficiary hereunder arising out of this Contract of reinsurance, and hereby
designate the above named as the person to whom the said officer is authorized to mail such process
or a true copy thereof.

ARTICLE 13 — ERRORS AND OMISSIONS

Any inadvertent delay, omission or error shall not be held to relieve either party hereto
from any liability which would attach to it hereunder if such delay, omission or error had not been
made, provided such delay, omission or error is rectified upon discovery.

ARTICLE 14 — COMMENCEMENT AND TERMINATION

This Contract applies only to accidents or occurrences happening during its effective
period. This Contract is effective at Midnight, December 31, 1980 Standard Time in Boston,
Massachusetts and shall remain in force continuously unless terminated at midnight on any
subsequent December 31 by either party giving the other at least three months prior notice of
cancellation. Otherwise, this Contract may be cancelled only by mutual consent, or if required by
law or administrative order.

ARTICLE 15 — REINSURANCE INTERMEDIARY DESIGNATION

Holborn Agency Corporation, 90 John Street, New York, New York 10038 is hereby recognized as the
Intermediary negotiating this Contract for all business hereunder. All communications (including
but not limited to notices, statements, premiums, return premiums, commissions, taxes, losses, loss
adjustment expense, salvages and loss settlements) relating thereto shall be transmitted to the
Company or the Reinsurers through Holborn Agency Corporation. Payments by the Company to the
Intermediary shall be deemed to constitute payment to the Reinsurer. Payments by the Reinsurers to
the Intermediary shall be deemed to constitute payment to the Company only to the extent that such
payments are actually received by the Company.

ARTICLE 16 — INTERPRETATION

The validity and interpretation of this Contract and of each Article and part thereof shall be
governed by the Law of the Commonwealth of Massachusetts.

EE/ms — 7/6/81

 

 

EXHIBIT A

EXCESS OF LOSS REINSURANCE OF GENERAL LIABILITY

SECTION 1 — COVERAGE

The Reinsurers hereby reinsure the Company, subject to the provisions and conditions herein
contained, in respect of liability which may accrue to the Company under any contracts of insurance
or reinsurance (hereinafter referred to as obligations of the Company), but excluding liability in
connection with the following class of business or contracts:

Workers’ Compensation and Employers’ Liability insurance, but this exclusion shall not apply to
Workers’ Compensation or Employers’ Liability coverage given under public liability policies
written by the Company (other than Umbrella Excess Liability policies).

Bankers’ and Brokers’ insurances or reinsurances issued by the Company meaning contracts issued to
banks, trust companies, building and loan companies, safe deposit companies, investment companies,
including investment trusts, finance companies, credit unions, stock or security brokers, or to
similar financial institutions, insuring them against loss from the following hazards:

Infidelity of employees and/or partners

Unfaithful performance of duties by employees
and/or partners 

Loss of property in transit

Forgery or alteration of negotiable or other paper

Burglary, robbery, theft, false pretenses or
fraud

Mysterious desappearance or misplacement of property

Loss of property from safe deposit boxes or other
depositories

Damage to or destruction of money or securities

Counterfeiting of currencies or securities

Motor Vehicle Physical Damage Insurance, but this exclusion shall not apply to Motor Vehicle
Property Damage Liability Insurance.

Credit Insurance and/or Financial Guarantee.

Fire Insurance, including the coverages ordinarily written under Extended Coverage Endorsements.

 

-2-

Group Health, Disability, Hospital or Surgical Insurance, but this exclusion shall not apply to any
loss due to two or more persons insured under one or more Group policies suffering bodily injuries,
including death resulting therefrom, as a result of one accident or series of accidents arising out
of one event.

Livestock Mortality Insurance.

Surety business, but this exclusion shall not apply to faithful performance bonds or public
official bonds; provided, however, that the Reinsurers shall not be liable for any loss resulting
from the insolvency of any firm, company, corporation or bank with which a guaranteed official has
deposited funds in the course of his duties.

Insurance covering the liability of owners or operators of aircraft carrying passengers for hire
for injuries to such passengers.

Contracts of insurance written on any cost-plus plan which provides for payment of the full amount
of all losses, however great, by the policyholder. This exclusion shall not apply to contracts of
insurance, premiums for which are determined by a retrospective rating plan which provides for a
specific maximum premium or a formula for determination of a maximum premium.

Contracts of liability insurance covering injuries to persons or property arising out of the rail
operations of Class 1 railroads; but this exclusion shall not apply to railroad Protective
Liability policies issued at the request of the Company’s policyholders doing work for or on the
premises of such railroads.

Liability under any Insolvency Fund arising by contract, operation of law or otherwise, whether
voluntary or involuntary. “Insolvency Fund” includes any guaranty fund, insolvency fund, plan,
pool, association, fund or other arrangement, howsoever denominated, established or governed; which
provides for any assessment of or payment or assumption by the Company of part or all of any claim,
debt, charge, fee, or other obligation of an insurer, or its successors, or assigns, which has been
declared by any competent authority to be insolvent, or which has been otherwise deemed unable to
meet any claim, debt, charge, fee or other obligation in whole or in part.

Excess of Loss Reinsurance Contracts.

This Contract is subject to the Nuclear Incident Exclusion Clause —Liability — Reinsurance and the
Nuclear Incident Exclusion Clause —Physical Damage — Reinsurance attached hereto.

 

-3-

SECTION 2 — LIMIT OF LIABILITY

The Reinsurer shall be liable for ultimate net loss in excess of the sum of $30,000,000 of
ultimate net loss each and every accident or occurrence in respect of business the subject matter
of this Exhibit, subject to a limit of $15,000,000 on account of each and every accident or
occurrence.

It is also agreed that subrogation expense incurred shall be paid in addition to the applicable
limits of liability set forth in this Section 2, on the basis provided in Article 4 of the
Contract.

For purposes of this Exhibit it is agreed that the Company’s limit of liability under any and all
policies of personal accident insurance (individual and group) covering any one individual shall be
considered as not exceeding $275,000. Subject to this agreement and subject to the limits set forth
in this Section 2 it is agreed that the Company is reinsured hereunder for the excess of the
amounts set forth in this Section 2 of ultimate net loss any one accident, or series of accidents
arising out of one event involving more than one person covered under such policies issued by the
Company.

SECTION 3 — ULTIMATE NET LOSS

The term “Ultimate Net Loss” as used in this Exhibit shall mean the amount actually paid by
the Company (including loss adjustment expenses, attorneys’ fees and other costs of investigation
or litigation) in settlement of or payment of claims or judgements arising from each and every loss
for which the Company is or may be found liable under its contracts of insurance or reinsurance,
less salvages and subrogation recoveries and amounts recovered or recoverable under pooling
agreements or other reinsurances, whether collectible, or not; provided, however, that in the event
of the insolvency of the Company, “Ultimate Net Loss” shall mean the amount of loss (including loss
adjustment expenses, attorneys’ fees and other costs of investigation or litigation) which the
Company has incurred or for which it is liable, and payment by the Reinsurers shall be made to the
liquidator, receiver or statutory successor of the Company in accordance with the provisions of
Article 8 of this Contract. Salaries and expenses of employees of the Company shall not be included
in ascertaining ultimate net loss.

This Contract shall protect the Company within the limit hereof, in connection with any loss for
which the Company may be legally liable to pay in excess of the limit of its original policy, where
loss in excess of the limit has been incurred because of its failure to settle within the policy
limit or by reason of alleged or actual negligence, fraud or bad faith in rejecting an offer of

 

-4-

settlement or in the preparation of the defense or in the trial of any action against its insured
or in the preparation of prosecution of an appeal consequent upon such action.

It is agreed that the Company may carry underlying limits of indemnity recoveries under which shall
inure to the sole benefit of the Company and shall be disregarded in computing the net excess loss
in excess of which this Contract attaches.

SECTION 4 — DEFINITION OF “EACH AND EVERY ACCIDENT OR OCCURRENCE”

The term “each and every accident or occurence” as used in this Exhibit is defined as follows
according to the class or risk involved:

	 	A.	 	Products Public Liability (Excluding Completed Operations)
	 
	 	 	 	All injury or damage caused to persons or property by any manufactured, prepared or acquired lot of
goods or products.
	 
	 	B.	 	Fidelity and Forgery
	 
	 	 	 	All losses resulting from any fraudulent or dishonest act or omission or series thereof on the part
of any one person or of several persons acting in collusion (whether employees or not) and
irrespective of the number of the Company’s obligations involved; provided, that in the case of any
loss involving two or more persons acting in collusion, losses resulting from separate acts or
omissions on the part of each such person shall be included as part of such loss.

	 	1.	 	It is agreed that each and every loss occurring prior to midnight on the date of termination
of this Contract and discovered not later than three years after such termination (excluding
only any loss which occurred wholly prior to midnight on the effective date of this Contract)
shall be recoverable under this Contract.
	 
	 	2.	 	It is further agreed that each and every loss resulting from a series of acts or omissions,
some prior to and some subsequent to midnight on the effective date of this Contract, shall be
disregarded.

	 	 	 	As regards losses arising under policies and/or contracts

 

-5-

	 	 	 	covering on a “losses discovered” or “claims made during” basis (that is to say policies and/or
contracts in which the date of discovery of the loss, or the date the claim is made against the
insured or is first notified to the Company, determines under which policy and/or contract the loss
is collectible), such losses are covered hereunder and the date of the discovery of such loss or
the date such claim is made or first notified shall be deemed to be the date of loss occurring for
the purposes of this Contract, provided that the date of the discovery of the loss or the date the
claim is made or first notified falls within the period covered by this Contract.
	 
	 	 	 	For the purposes of the foregoing the date of first discovery of a “loss” or the date the claim is
first made against an insured or first notified to the Company shall be the date applicable to the
entire loss and/or claim and the Reinsurers shall be liable for their proportion of the entire loss
and/or claim irrespective of the expiry date of this Contract and provided that such first
discovery date or first date such claim is made or notified falls within the period of this
Contract.
	 
	 	C.	 	Liability Insurance Written Subject to an Aggregate Limit
	 
	 	 	 	As respects each and every liability insurance policy issued by the Company which contains one or
more aggregate limits of liability on a policy year basis, and as respects each such aggregate
limit under each policy year, the aggregate amount of all losses occurring during one policy year.
Where the Company issues more than one such policy to the same policyholder such policies shall
together be treated as though they were one policy. Losses under such policies shall for the
purposes of this reinsurance contract be deemed to have occurred in the calendar year in which the
inception date of the policy falls, except that as respects such policies issued for a period in
excess of twelve months, losses for the first twelve month period shall be deemed to have occurred
in the calendar year in which the inception date of the policy falls and losses for each succeeding
twelve month period or part thereof shall be deemed to have occurred in the calendar year in which
the anniversary date of the policy starting such period falls.
	 
	 	D.	 	All Other Classes or Risks Covered hereunder (Including Completed Operations)
	 
	 	 	 	All injuries to persons and all losses of, injury to or destruction of property resulting from each
accident or

 

-6-

	 	 	 	loss, or from each series of accidents or losses proximately arising out of or following on any one
cause or event.

SECTION 5 — CLAIMS AGAINST REINSURERS

The Company shall be the sole judge as to what claims are covered under its policies, and all loss
settlements made and all judgements paid by the Company, provided they are within the terms and
conditions of this Exhibit, shall be unconditionally binding upon the Reinsurers and amounts
falling to the share of the Reinsurers shall be immediately due and payable by them upon reasonable
evidence of the amount paid being given by the Company. Nevertheless, it is understood and agreed
that in the event of a loss hereunder, or of an event or happening likely to result in a loss
hereunder, the Reinsurers shall have the right, if they so elect, to cooperate with the Company in
the defense or settlement of original losses under its obligations.

All settlements of losses effected by the Company shall be binding upon the Reinsurers, and the
Reinsurers shall be liable for their proportion thereof.

This Exhibit A is attached to and forms part of the Workers’ Compensation and General Liability
Sixth Excess of Loss Reinsurance Contract issued to LIBERTY MUTUAL INSURANCE COMPANY and LIBERTY
MUTUAL FIRE INSURANCE COMPANY.

EE/ms 7/6/81

 

 

EXHIBIT B

EXCESS OF LOSS REINSURANCE OF WORKERS’ COMPENSATION

SECTION 1 — COVERAGE

The Reinsurers hereby reinsure the Company in respect of the liability of the Company, under (1)
policies (the premium for which is classified by the Company, for internal purposes, as “Workers’
Compensation” or “Employers’ Liability”) by which the Company insures the liability of employers
under law or contract which imposes liability upon such employer for injury, sickness or disease,
including death resulting therefrom, sustained by his employees, and (2) Employers Liability
coverage provided under Umbrella Excess Liability policies.

SECTION 2 — LIMITS OF LIABILITY

The Reinsurers shall be liable for ultimate net loss in excess of the sum of $30,000,000 of
ultimate net loss each and every accident or occurrence in respect of business the subject matter
of this Exhibit, subject to a limit of $15,000,000 on account of each and every accident or
occurrence.

It is also agreed that subrogation expense incurred shall be paid in addition to the applicable
limits of liability set forth in this Section 2, on the basis provided in Article 4 of the
Contract.

SECTION 3 — ULTIMATE NET LOSS

The term “ultimate net loss” as used in this Exhibit means the  amount actually paid by the
Company (including but not limited to medical losses, interests, costs and allocated claim expense)
in respect of claims arising from any one accident or occurrence, for which the Company is or may
be found liable, after making proper deductions for amounts paid or due under other reinsurance
(whether collectible or not), subrogation recoveries, overpayments collected, and refunds to the
Company from the New York Aggregate Trust Fund, second injury funds and other such funds; provided,
however, that in the event of the insolvency of the Company, “ultimate net loss” as used in this
Exhibit means the amount of loss (including but not limited to medical losses, interests, costs and
allocated claim expense) in respect of claims arising from any one accident or occurrence which the
Company has incurred or for which it is liable, and payment by the Reinsurers shall be made to the
liquidator, receiver or statutory successor of the Company in

 

-2-

accordance with the provisions of Article 8 of this Contract. Expenses for salaried
employees of the Company incurred in litigation and the investigation or adjustment of claims or
suits and subrogation expense referred to in Article 4 shall be disregarded in ascertaining
ultimate net loss.

This Contract shall protect the Company within the limit hereof in connection with any loss for
which the Company may be legally liable to pay in excess of the limit of its original policy, where
loss in excess of the limit has been incurred because of its failure to settle within the policy
limit or by reason of alleged or actual negligence, fraud or bad faith in rejecting an offer of
settlement or in the preparation of the defense or in the trial of any action against its insured
or in the preparation of prosecution of an appeal consequent upon such action.

It is agreed that the Company may carry underlying limits of indemnity recoveries under which shall
inure to the sole benefit of the Company and shall be disregarded in computing the net excess loss
in excess of which this Contract attaches.

SECTION 4 — EXCLUSIONS

This Exhibit does not apply:

	A.	 	To excess of loss reinsurance contracts.
	 
	B.	 	To the following occupations, employments or risks (except when not disclosed to the Company,
when incidental to a non- excluded risk (the company to be the sole judge of what is
incidental) or when insured through voluntary or statutory pools or assigned risk plans):

	 	1.	 	The navigation and operation of vessels on the high seas in foreign commerce;
	 
	 	2.	 	Underground coal mining;
	 
	 	3.	 	Fireworks manufacturing;
	 
	 	4.	 	Fuse manufacturing;
	 
	 	5.	 	Explosive risks, viz

	 	(a)	 	Manufacture of any explosive substance intended for use as an explosive;
	 
	 	(b)	 	Manufacture of any product, other than Fireworks and Fuses, in which any such explosive
substance is an ingredient;
	 
	 	(c)	 	The loading of any such explosive substance into containers for use as explosive objects,
propellant charges or detonating devices, and the incidental

 

-3-

	 	 	 	storage thereof;
	 
	 	(d)	 	Handling transportation or storage of any such explosive substance intended solely for war
purposes.

	C.	 	To any accident or occurrence as to which the Company is entitled to recover the full amount
of the loss under an insurance policy written on a cost-plus plan, that is to say, a plan
which provides for the payment of the full amount of all losses, however great, by the
policyholder. This exclusion does not apply to bar recovery from the Reinsurers with respect
to accidents or occurrences under retrospectively-rated policies.
	 
	D.	 	Liability under any Insolvency Fund arising by contract, operation of law or otherwise,
whether voluntary or involuntary. “Insolvency Fund” includes any guaranty fund, insolvency
fund, plan, pool, association, fund or other arrangement, howsoever denominated, established
or governed, which provides for any assessment of or payment or assumption by the Company of
part or all of any claim debt, charge, fee or other obligation of an insurer, or its
successors, or assigns, which has been declared by any competent authority to be insolvent, or
which has been otherwise deemed unable to meet any claim, debt, charge, fee or other
obligation in whole or in part.

SECTION 5 — DEFINITIONS

As used in this Exhibit the following terms shall have the meanings stated herein:

	A.	 	“Policies”. Policies, contracts, endorsements or binders, including but not limited to those
by which the Company undertakes to offer and pay “voluntary compensation” benefits, those by
which the Company undertakes to make payments to augment compensation benefits those by which
the Company affords reinsurance or excess insurance to Workers’ Compensation or Employers’
Liability risks and those by which the Company undertakes to participate in voluntary or
statutory pools or assigned-risk plans.
	 
	B.	 	“Explosive Substance”. Any substance manufactured for the express purpose of exploding as
differentiated from commodities used industrially and which are only incidentally explosive -
such as gasoline, celluloid, fuel gases and dyestuffs.
	 
	C.	 	“Accident or Occurrence.” Any one accident or occurrence or series of accidents or
occurrences arising out of one event provided that, with respect to disease or death resulting

 

-4-

	 	 	therefrom, the terms accident or occurrence and series of accidents or occurrences shall mean the
claim or series of claims occasioned by the disease or diseases having a common cause or origin.
The Company shall be the sole judge of what constitutes disease or diseases having a common cause
or origin. The Company shall assign the claim or series of claims to a policy year of coverage
under any one policy or renewal thereof and will be bound by the following principles:

	 	1.	 	If the liability is placed solely upon the employer or insurer as of the date the claimant’s
disability commences or becomes manifest and that date is within a period of coverage under an
applicable policy issued by the Company, the loss shall be deemed to have been sustained by
the Company at such date.
	 
	 	2.	 	If assignment is not made on the basis stated in the preceding subparagraph the claim is to
be assigned to the policy year of the date of claimant’s last injurious exposure during a
period of coverage under an applicable policy issued by the Company.

	 	 	Notwithstanding anything to the contrary above set forth, it is agreed that the date of the loss
occurrence for the purpose of this reinsurance shall be deemed to be the inception, anniversary or
renewal date of the Company’s original policy. Losses occurring under a policy in-force at December
31, 1980 shall be assigned to this Agreement to the extent such losses are not assignable to the
1980 Contract year.
	 
	 	 	Notwithstanding the foregoing, where a policyholder requests that it be issued two or more policies
in circumstances where applicable manual rules permit the issuance of a single policy such policies
shall be regarded as a single policy for purposes of assigning disease claims to a policy year
coverage.
	 
	 	 	“Policy year” shall mean each separate original policy period of not exceeding twelve months
commencing at the inception, anniversary or renewal date on or after the inception of this
Agreement.

SECTION 6 — NOTICE TO REINSURERS

As soon as practicable after it appears probable that the Company’s ultimate net loss on account of
any one accident or occurrence will exceed the amount above which the Reinsurers are liable under
this

 

-5-

Exhibit, the Company shall notify the Reinsurers and provide them full information relative
thereto, and copies of all papers that may be desired by them, and the Reinsurers shall be given
every opportunity to participate in the defense of any such suit, proceeding or claim at their own
expense.

SECTION 7 — PAYMENT BY THE COMPANY

The Company shall be the sole judge as to what claims are covered under its policies, as to
the liability of the Company therefor and as to the amounts which the Company should pay thereon,
and the Reinsurers shall be bound by the judgement of the Company as to such matters.

All settlements of losses effected by the Company shall be binding upon the Reinsurers, and the
Reinsurers shall be liable for their proportion thereof.

SECTION 8 — CLAIMS AGAINST REINSURERS

The Company shall, after it has paid any amount of ultimate net loss for which the Reinsurers may
be liable under this Exhibit, submit to the Reinsurers a definite claim for such amount. If any
subsequent losses shall be paid by the Company on account of the same accident or occurrence,
additional claims hereunder shall be similarly made from time to time. Losses shall be due and
payable by the Reinsurers within fifteen days after claim hereunder is proved.

All salvages, recoveries and payments recovered or received subsequent to a loss settlement under
this Exhibit shall be applied as if recovered or received prior to the said settlement and all
necessary adjustments shall be made by the parties hereto.

SECTION 9 — COMMUTATION

Within 48 months from the expiration of each annual period of this Contract the Company shall
submit a statement to the Reinsurers listing amounts paid and reserved for all Workers’
Compensation claims under this Agreement. This statement shall form the basis of an agreed value
for all such losses. The amounts of reserves contained therein shall be calculated in accordance
with the following criteria:

	 	1.	 	Mortality assumptions will be calculated from the latest available United States census
tables as follows:

 

-6-

	 	 	 	Survivor Benefits — Total Females

	 	 	 	Disability Benefits — Total Males

	 	2.	 	The annual interest discount percentage shall be an average (rounded to the nearest one-half
percentage point) of the before-tax yields of the Company’s investment purchases for the three
latest available calendar years.
	 
	 	3.	 	Remarriage expectations will be in accordance with the assumptions used by the National
Council on Compensation Insurance in its statistical tables.
	 
	 	4.	 	For all future medical costs, and annuity calculation shall be based upon the Company’s
evaluation of long term medical care and rehabilitation requirements, using an annual discount
of 0% and an annual escalation of 0%.

The above criteria shall not apply to losses with future escalation of indemnity benefits as
described below:

	 	1.	 	Annuity values for “index-linked” benefits shall be calculated based upon an annual discount
of 0% and an annual escalation of 0%.
	 
	 	2.	 	For “index-linked” benefits, remarriage expectations will not be used.

Except as may be mutually agreed for specific losses, these calculations shall be considered the
final and agreed value of all known workers’ compensation losses for the applicable annual period
of this Contract. A resulting payment, if any, shall be accepted by the Company in full settlement
of the Reinsurers’ liability for all such losses. In the event that a workers’ compensation loss is
not reported to the Company until after the Company’s statement has been submitted, immediate
notice of such loss shall be given to the Reinsurers in order than an agreed present value may be
determined.

SECTION 10 — TWO PERSON WARRANTY

No loss shall be recoverable unless at least two employees of one or more insureds are involved in
the same accident or occurrence or series of accidents or occurrences originating from one event
and the payments to at least two employees are more than $50,000 each. This Warranty does not apply
to Employers Liability Coverage.

This Exhibit B is attached to and forms part of the Workers’ Compensation and General Liability
Sixth Excess of Loss Reinsurance Contract issued to LIBERTY MUTUAL INSURANCE COMPANY and LIBERTY
MUTUAL FIRE INSURANCE COMPANY.

EE/ms — 7/6/81

 

 

NUCLEAR INCIDENT EXCLUSION CLAUSE — LIABILITY — REINSURANCE

	(1)	 	This Agreement does not cover any loss or liability accruing to the Reassured as a member of,
or subscriber to, any association of insurers or reinsurers formed for the purpose of covering
nuclear energy risks or as a direct or indirect reinsurer of any such member, subscriber
or association.
	 
	(2)	 	Without in any way restricting the operation of paragraph (1) of this Clause it is understood
and agreed that for all purposes of this Agreement all the original policies of the Reassured
(new, renewal and replacement) of the classes specified in Clause II of this paragraph (2)
from the time specified in Clause III in this paragraph (2) shall be deemed to include the
following provision (specified as the Limited Exclusion Provision):
	 
	 	 	Limited Exclusion Provision.

	 	I.	 	It is agreed that the policy does not apply under any liability
coverage, to injury, sickness, disease, death or destruction with respect to which an insured under
the policy is also an insured under a nuclear energy liability policy issued by Nuclear Energy
Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance
Association of Canada, or would be an insured under any such policy but for its termination upon
exhaustion of its limit of liability.
	 
	 	II.	 	Family Automobile Policies (liability only), Special Automobile Policies (private passenger
automobiles, liability only), Farmers Comprehensive Personal Liability Policies (liability
only), Comprehensive Personal Liability Policies (liability only) or policies of a similar
nature; and the liability portion of combination forms related to the four classes of
policies stated above, such as the Comprehensive Dwelling Policy and the applicable types of
Homeowners Policies.
	 
	 	III.	 	The inception dates and thereafter of all original policies as described in II above, whether
new, renewal or replacement, being policies which either

	 	(a)	 	become effective on or after 1st May, 1960, or
	 
	 	(b)	 	become effective before that date and contain the Limited Exclusion Provision set out above;

	 	 	 	provided this paragraph (2) shall not be applicable to Family Automobile Policies, Special
Automobile Policies, or policies or combination policies of a similar nature, issued by the
Reassured on New York risks, until 90 days following approval of the Limited Exclusion Provision by
the Governmental Authority having jurisdiction thereof.

 

-2-

	(3)	 	Except for those classes of policies specified in clause II of paragraph (2) and without
in any way restricting the operation of paragraph (1) of this Clause, it is understood and agreed
that for all purposes of this Agreement the original liability policies of the Reassured (new,
renewal and replacement) affording the following coverages:

	 	 	 	Owners, Landlords and Tenants Liability, Contractual Liability, Elevator Liability, Owners or
Contractors (including railroad) Protective Liability, Manufacturers and Contractors Liability,
Product Liability, Professional and Malpractice Liability, Storekeepers Liability, Garage
Liability, Automobile Liability (including Massachusetts Motor Vehicle or Garage Liability)

	 	 	shall be deemed to include, with respect to such coverages, from the time specified in Clause V of
this paragraph (3), the following provision (specified as the Broad Exclusion Provision):
	 
	 	 	Broad Exclusion Provision.
	 
	 	 	It is agreed that the policy does not apply:

	 	I.	 	Under any Liability Coverage, to injury, sickness, disease, death or destruction

	 	(a)	 	with respect to which an insured under the policy is also an insured under a nuclear energy
liability policy issued by Nuclear Energy Liability Insurance Association, Mutual Atomic
Energy Liability Underwriters or Nuclear Insurance Association of Canada, or would be an
insured under any such policy but for its termination upon exhaustion of its limit of
liability; or
	 
	 	(b)	 	resulting from the hazardous properties of nuclear material and with respect to which (1) any
person or organization is required to maintain financial protection pursuant to the Atomic
Energy Act of 1954, or any law amendatory thereof, or (2) the insured is, or had this policy
not been issued would be, entitled to indemnity from the United States of America, or any
agency thereof, under any agreement entered into by the United States of America, or any
agency thereof, with any person or organization.

	 	II.	 	Under any Medical Payments Coverage, or under any Supplementary Payments Provision relating
to immediate medical or surgical relief, to expenses incurred with respect to bodily injury,
sickness, disease or death resulting from the hazardous properties of nuclear material and
arising out of the operation of a nuclear facility by any person or organization.
	 
	 	III.	 	Under any Liability Coverage, to injury, sickness, disease, death or destruction resulting
from the hazardous properties of nuclear material, if

	 	(a)	 	the nuclear material (1) is at any nuclear facility owned by, or operated by or on behalf of,
an insured or (2) has been discharged or dispersed therefrom;

 

-3-

	 	(b)	 	the nuclear material is contained in spent fuel or waste at any time possessed, handled,
used, processed, stored, transported or disposed of by or on behalf of an insured; or
	 
	 	(c)	 	the injury, sickness, disease, death or destruction arises out of the furnishing by an
insured of services, materials, parts or equipment in connection with the planning,
construction, maintenance, operation or use of any nuclear facility, but if such facility is
located within the United States of America, its territories or possessions or Canada, this
exclusion (c) applies only to injury to or destruction of property at such nuclear facility.

	 	IV.	 	As used in this endorsement:
	 
	 	 	 	“hazardous properties” include radioactive, toxic or explosive properties; “nuclear material” means
source material, special nuclear material or byproduct material; “source material”, “special
nuclear material”, and “byproduct material” have the meanings given them in the Atomic Energy Act
of 1954 or in any law amendatory thereof; “spent fuel” means any fuel element or fuel component,
solid or liquid, which has been used or exposed to radiation in a nuclear reactor; “waste” means
any waste material (1) containing byproduct material and (2) resulting from the operation by any
person or organization of any nuclear facility included within the definition of nuclear facility
under paragraph (a) or (b) thereof; “nuclear facility” means

	 	(a)	 	any nuclear reactor,
	 
	 	(b)	 	any equipment or device designed or used for (1) separating the isotopes of uranium or
plutonium, (2) processing or utilizing spent fuel, or (3) handling, processing or packaging
waste,
	 
	 	(c)	 	any equipment or device used for the processing, fabricating or alloying of special nuclear
material if at any time the total amount of such material in the custody of the insured at the
premises where such equipment or device is located consists of or contains more than 25 grams
of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235,
	 
	 	(d)	 	any structure, basin, excavation, premises or place prepared or used for the storage or
disposal of waste,

	 	 	 	and includes the site on which any of the foregoing is located, all operations conducted on such
site and all premises used for such operations; “nuclear reactor” means any apparatus designed or
used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass
of fissonable material;
	 
	 	 	 	With respect to injury to or destruction of property, the word “injury” or “destruction” includes
all forms of radioactive contamination of property.

 

-4-

	 	V.	 	The inception dates and thereafter of all original policies affording coverages specified
in this paragraph (3), whether new, renewal or replacement, being policies which either

	 	(a)	 	become effective on or after 1st May, 1960, or
	 
	 	(b)	 	become effective before that date and contain the Broad Exclusion Provision set out above;

	 	 	 	provided this paragraph (3) shall not be applicable to

	 	(i)	 	Garage and Automobile Policies issued by the Reassured on New York risks, or
	 
	 	(ii)	 	statutory liability insurance required under Chapter 90, General Laws of Massachusetts,

	 	 	 	until 90 days following approval of the Broad Exclusion Provision by the Governmental Authority
having jurisdiction thereof.
	 
	 	 	 	It is further provided that original liability policies affording coverages described in this
paragraph (3), (other than those policies and coverages described in (i) and (ii) above), which
become effective before 1st May, 1960, and do not contain the Broad Exclusion Provision set out
above, but which contain the Broad Exclusion Provision set out in N.M.A. 1118, shall be construed
as if incorporating such portions of the Broad Exclusion Provision set out above as are more
liberal to the holders of such policies.

	(4)	 	Without in any way restricting the operation of paragraph (1) of this clause it is understood
and agreed that original liability policies of the Reassured, for those classes of policies

	 	(a)	 	described in Clause II of paragraph (2) effective before 1st June, 1958, or
	 
	 	(b)	 	described in paragraph (3) effective before 1st March, 1958,

	 	 	shall be free until their natural expiry dates or 1st June, 1963, whichever first occurs,
from the application of the other provisions of this Clause.
	 
	(5)	 	Without in any way restricting the operation of paragraph (1) of this Clause, it is
understood and agreed that paragraphs (2) and (3) above are not applicable to original
liability policies of the Reassured in Canada and that with respect to such policies this
Clause shall be deemed to include the Nuclear Energy Liability Exclusion Provisions actually
used on such policies by the Reassured; provided that if the Reassured shall fail to include
such Exclusion Provisions in any such policy where it is legally permitted to do so, such
policy shall be deemed to include such Exclusion Provisions.

 

 

NUCLEAR
INCIDENT EXCLUSION CLAUSE – PHYSICAL DAMAGE – REINSURANCE

(Wherever the word “Reassured” appears in this clause, it shall be deemed to
read “Reassured”, “Reinsured”. “Company”, or whatever other word is employed
throughout the text of the reinsurance agreement to which this clause is attached
to designate the company or companies reinsured.)

     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
or nuclear installation, or
	 
	 	(b)	 	where said insurance contains a provision excluding coverage for damage to
property caused by or resulting from radioactive contamination, however caused.
However on and after 1st January 1960 this sub-paragraph (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 paragraphs (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.

     5. It 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.

     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.

12/12/57

 

 

ENDORSEMENT NO. 2

to the

WORKERS’ COMPENSATION AND GENERAL LIABILITY 

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

BOSTON, MASSACHUSETTS

(hereinafter called the “Company”)

by

AMERICAN UNION INSURANCE COMPANY OF NEW YORK

INDIANAPOLIS, INDIANA

(hereinafter called the “Reinsurer”)

It is
hereby mutually understood and agreed effective Midnight,
December 31, 1980, ARTICLE 3 — REINSURANCE PREMIUM, Paragraph (a), shall be deleted in its entirety and replaced by the
following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided under this Contract
shall be computed by the application of a rate of .003% to the Company’s net premium
written on the business covered under Exhibits “A” and “B” subject to an annual minimum
premium of $57,000 and an annual deposit premium of $64,000 for the combined Sixth
Excess of Loss Layer provided under Exhibits “A” and “B”.”

It is also understood and agreed that effective Midnight, December 31, 1980 the Reinsurer’s
participation in this Contract as set forth in the Interests and Liabilities Agreement attached to
and forming a part of this Contract is hereby amended to 4.50%.

It is hereby further mutually understood and agreed effective July 1, 1981, Liberty Mutual
(Bermuda) Ltd., shall be included as a named Reassured.

All other terms and conditions remain unchanged.

 

 

- 2 -

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have
executed this Endorsement as of the dates undermentioned.

At Boston, Massachusetts this 28th day of July, 1981

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY 

LIBERTY MUTUAL FIRE INSURANCE COMPANY 

LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/	 	 
	 

	 	 	 	 	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT	 	 

and at Indianapolis, Indiana this 12th day of August, 1981

	 	 	 	 	 	 	 

	 	 	AMERICAN UNION INSURANCE COMPANY OF NEW YORK	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/	 	 
	 

	 	 	 	 	 	 
	 

	 	TITLE:
	 	ASS’T. SECRETARY	 	 

EE/ms
– 7/6/81

 

ENDORSEMENT NO. 2

to the

WORKERS’ COMPENSATION AND GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE_COMPANY

BOSTON, MASSACHUSETTS

(hereinafter called the “Company”)

by

DOMINION INSURANCE COMPANY OF AMERICA

NEW YORK, NEW YORK

(hereinafter called the “Reinsurer”)

It is hereby mutually understood and agreed effective Midnight, December 31, 1980,
ARTICLE 3 – REINSURANCE PREMIUM, Paragraph (a), shall be deleted in its entirety and
replaced by the following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided under this Contract shall be computed by
the application of a rate of .003% to the Company’s net premium written on the business covered
under Exhibits “A” and “B” subject to an annual minimum premium of $57,000 and an annual deposit
premium of $64,000 for the combined Sixth Excess of Loss Layer provided under Exhibits “A” and
“B”.”

It is hereby further mutually understood and agreed effective July 1, 1981, Liberty Mutual
(Bermuda) Ltd., shall be included as a named Reassured.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have executed
this Endorsement as of the dates undermentioned.

At Boston Massachusetts this 28th day of July, 1981

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY
 LIBERTY
MUTUAL FIRE INSURANCE COMPANY 
LIBERTY MUTUAL
(BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/	 	 
	 

	 	 	 	 	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT	 	 

and at New York, New York this 13th day of August, 1981

	 	 	 	 	 	 	 

	 	 	DOMINION INSURANCE COMPANY OF AMERICA	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/	 	 
	 

	 	 	 	 	 	 
	 

	 	TITLE:
	 	Senior Vice President	 	 

EE/ms — 7/6/81

 

 

Contract
No. 01724–78

ENDORSEMENT NO. 2

to the

WORKERS’ COMPENSATION AND GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

BOSTON, MASSACHUSETTS

(hereinafter called the “Company”)

by

EMPLOYERS INSURANCE OF WAUSAU A MUTUAL COMPANY

WAUSAU, WISCONSIN

(hereinafter called the “Reinsurer”)

It is hereby mutually understood and agreed effective Midnight, December 31, 1980, ARTICLE
3 – REINSURANCE PREMIUM, Paragraph (a), shall be deleted in its entirety and replaced by
the following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided under this Contract
shall be computed by the application of a rate of .003% to the Company’s
net premium written on the business covered under Exhibits “A” and “B” subject
to an annual minimum premium of $57,000 and an annual deposit premium
of $64,000 for the combined.
Sixth Excess of Loss Layer provided under Exhibits “A”
and “B”.”

It is hereby further mutually understood and agreed effective July 1, 1981, Liberty
Mutual (Bermuda) Ltd., shall be included as a named Reassured.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have
executed this Endorsement as of the dates undermentioned.

At Boston Massachusetts this 28th day of July, 1981

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY
 LIBERTY MUTUAL FIRE
INSURANCE COMPANY
 LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/	 	 
	 

	 	 	 	 	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT	 	 

and at Wausau, Wisconsin this 12th day of August, 1981

	 	 	 	 	 	 	 

	 	 	EMPLOYERS INSURANCE OF WAUSAU

A MUTUAL COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ Raymond H. Bohl	 	 
	 

	 	 	 	 	 	 
	 

	 	
TITLE:
	 	Raymond H. Bohl,
Vice President	 	 

EE/ms — 7/6/81

 

 

ENDORSEMENT NO. 2

to the

WORKERS’ COMPENSATION AND GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

BOSTON, MASSACHUSETTS

(hereinafter called the “Company”)

by

MEMBERS OF EXCESS AND CASUALTY REINSURANCE ASSOCIATION

NEW YORK, NEW YORK

(hereinafter called the “Reinsurer”)

It is hereby mutually understood and agreed effective Midnight, December 31, 1980,
ARTICLE 3 – REINSURANCE PREMIUM, Paragraph (a), shall be deleted in its entirety and
replaced by the following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided under this Contract shall be computed
by the application of a rate of .003% to the Company’s net premium written on the business covered
under Exhibits “A” and “B” subject to an annual minimum premium of $57,000 and an annual deposit
premium of $64,000 for the combined Sixth Excess of Loss Layer provided under Exhibits “A” and
“B”.”

It is hereby further mutually understood and agreed effective July 1, 1981, Liberty Mutual
(Bermuda) Ltd., shall be included as a named Reassured.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have executed
this Endorsement as of the dates undermentioned.

At Boston Massachusetts this 28th day of July, 1981

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY 
LIBERTY
MUTUAL FIRE INSURANCE COMPANY 
LIBERTY MUTUAL
(BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/	 	 
	 

	 	 	 	 	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT	 	 

and at New
York, New York this 28th day of October, 1981

	 	 	 	 	 	 	 

	 	 	EXCESS & TREATY MANAGEMENT CORPORATION
UNDERWRITING MANAGER	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ Francis J. Clarke	 	 
	 

	 	 	 	 	 	 
	 

	 	TITLE:
	 	Contracts Analyst	 	 

EE/ms – 7/6/81

 

 

AMENDED
MEMBERS’ LIST

Attached to and forming part

of Agreement No. C-708

     As
respects loss occurrences taking place at or after 12:01 A.M. January 1, 1981, this
Agreement is subject to the provisions of Endorsement A attached hereto, and the list of Members
constituting the “Reinsurer” and the respective proportions of the liability assumed severally and
not jointly by them under this Agreement shall be as follows:

MEMBERS of EXCESS AND CASUALTY REINSURANCE ASSOCIATION

	 	 	 	 	 
	 	 	PROPORTIONS
	ABEILLE-PAIX GENERAL INSURANCE COMPANY*
	 	 	3/1018	 
	THE AETNA
CASUALTY AND SURETY COMPANY
	 	 	36/1018	 
	AETNA INSURANCE COMPANY
	 	 	44/1018	 
	ALABAMA FARM BUREAU MUTUAL CASUALTY INSURANCE COMPANY, INC.**
	 	 	3/1018	 
	AMERICAN AGRICULTURAL INSURANCE COMPANY
	 	 	20/1018	 
	AMERICAN HOME ASSURANCE COMPANY
	 	 	12/1018	 
	AMERICAN OVERSEAS REINSURANCE COMPANY
	 	 	22/1018	 
	ATLAS ASSURANCE COMPANY OF AMERICA
	 	 	9/1018	 
	BUFFALO REINSURANCE COMPANY
	 	 	4/1018	 
	THE CINCINNATI INSURANCE COMPANY
	 	 	3/1018	 
	CONTINENTAL CASUALTY COMPANY
	 	 	21/1018	 
	THE COPENHAGEN REINSURANCE COMPANY OF AMERICA
	 	 	5/1018	 
	DORINCO REINSURANCE COMPANY**
	 	 	6/1018	 
	EAGLE STAR INSURANCE COMPANY OF AMERICA
	 	 	8/1018	 
	ELK HORN INSURANCE COMPANY
	 	 	11/1018	 
	EMPLOYERS MUTUAL CASUALTY COMPANY
	 	 	3/1018	 
	EMPLOYERS INSURANCE OF WAUSAU A MUTUAL COMPANY
	 	 	11/1018	 
	EQUITABLE GENERAL INSURANCE COMPANY
	 	 	10/1018	 
	EXCESS AND TREATY REINSURANCE CORPORATION
	 	 	102/1018	 
	FARMERS HOME MUTUAL INSURANCE COMPANY
	 	 	3/1018	 
	FARMERS MUTUAL HAIL INSURANCE COMPANY OF IOWA
	 	 	3/1018	 
	FEDERATED REINSURANCE CORPORATION
	 	 	31/1018	 
	FOLKSAMERICA REINSURANCE COMPANY
	 	 	7/1018	 
	GENERAL ACCIDENT FIRE AND LIFE ASSURANCE CORP., LTD.*
	 	 	23/1018	 
	GREAT AMERICAN INSURANCE COMPANY
	 	 	22/1018	 
	GREATER NEW YORK MUTUAL INSURANCE COMPANY
	 	 	3/1018	 
	GUARANTEE INSURANCE COMPANY
	 	 	8/1018	 
	THE HANOVER INSURANCE COMPANY
	 	 	17/1018	 
	HANSECO INSURANCE COMPANY
	 	 	15/1018	 
	HASTINGS MUTUAL INSURANCE COMPANY **
	 	 	4/1018	 
	HIGHLANDS INSURANCE COMPANY
	 	 	20/1018	 
	THE HOME INSURANCE COMPANY
	 	 	64/1018	 
	INLAND INSURANCE COMPANY**
	 	 	5/1018	 
	INSURANCE CORPORATION OF HANNOVER**
	 	 	31/1018	 
	LIBERTY MUTUAL INSURANCE COMPANY
	 	 	47/1018	 
	LIBERTY NATIONAL FIRE INSURANCE COMPANY
	 	 	4/1018	 
	MERCHANTS AND BUSINESS MEN’S MUTUAL INSURANCE COMPANY
	 	 	4/1018	 
	MERRIMACK MUTUAL FIRE INSURANCE COMPANY
	 	 	10/1018	 
	METROPOLITAN REINSURANCE COMPANY
	 	 	76/1018	 
	MOTORISTS MUTUAL INSURANCE COMPANY
	 	 	5/1018	 
	THE MUTUAL FIRE, MARINE AND INLAND INSURANCE COMPANY
	 	 	11/1018	 
	NEW ENGLAND REINSURANCE CORPORATION
	 	 	10/1018	 
	NIPPON FIRE
& MARINE INSURANCE COMPANY, LTD.*
	 	 	9/1018	 
	NORTHEASTERN INSURANCE COMPANY OF HARTFORD
	 	 	25/1018	 
	PHILADELPHIA MANUFACTURERS MUTUAL INSURANCE COMPANY
	 	 	4/1018	 
	PROVIDENCE WASHINGTON INSURANCE COMPANY
	 	 	4/1018	 
	PROVIDENT GENERAL INSURANCE COMPANY
	 	 	3/1018	 
	PURITAN INSURANCE COMPANY
	 	 	8/1018	 
	REPUBLIC INSURANCE COMPANY
	 	 	28/1018	 
	ROYAL INSURANCE COMPANY OF AMERICA
	 	 	32/1018	 
	ST. PAUL FIRE & MARINE INSURANCE COMPANY
	 	 	26/1018	 
	SECURITY INSURANCE COMPANY OF HARTFORD
	 	 	41/1018	 
	SENTRY INSURANCE A MUTUAL COMPANY
	 	 	4/1018	 
	SHELBY MUTUAL INSURANCE COMPANY
	 	 	4/1018	 
	TAISHO MARINE AND FIRE INSURANCE COMPANY, LTD.*
	 	 	8/1018	 
	TOKIO MARINE AND FIRE INSURANCE COMPANY, LTD.*
	 	 	24/1018	 
	UNIGARD MUTUAL INSURANCE COMPANY
	 	 	5/1018	 
	UNION INDEMNITY INSURANCE COMPANY OF NEW YORK
	 	 	7/1018	 
	UNITED FIRE
& CASUALTY COMPANY
	 	 	3/1018	 
	WINTERTHUR SWISS INSURANCE COMPANY*
	 	 	9/1018	 
	ZURICH INSURANCE COMPANY*
	 	 	18/1018	 

 

			
	*	 	U.S. Branch
	 
	**	 	Not licensed or accredited in New York

EXCESS AND TREATY MANAGEMENT CORPORATION

Underwriting Manager

	 	 	 	 	 	 	 

	 

	 	By:
	 	/s/ Francis J. Clarke
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Francis J. Clarke, Contracts Analyst	 	 

2.81

 Excess and Treaty Management Corporation — Underwriting Manager

 

 

ENDORSEMENT A

Non-Admitted
Reinsurers Clause — Each of the Members of Excess and Casualty Reinsurance
Association (“ECRA”) designated on the Members’ List attached hereto as not being
licensed or accredited by the Insurance Department of the State of New York, will fund
outstanding losses under this Agreement, including an allowance for IBNR as recommended
by Excess and Treaty Management Corporation, the Underwriting Manager of ECRA, and
unearned premium reserves, in an amount equal to such Member’s proportion of liability
under this Agreement. Such security shall be held for the benefit of the Reinsured and
may be in the form of cash advances, escrow or trust accounts, clean irrevocable letters
of credit, or a combination thereof, acceptable to said Insurance Department.

2.81

Excess and Treaty Management Corporation — Underwriting Manager

 

 

ENDORSEMENT NO. 2

to the

WORKERS’ COMPENSATION AND GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

BOSTON, MASSACHUSETTS

(hereinafter called the “Company”)

by

GENERAL
ACCIDENT FIRE AND LIFE ASSURANCE CORPORATION, LTD.

(U.S. BRANCH) through: BOSTON REINSURANCE CORPORATION

(hereinafter called the “Reinsurer”)

It is
hereby mutually understood and agreed effective Midnight,
December 31, 1980, ARTICLE 3 – REINSURANCE PREMIUM, Paragraph (a), shall be deleted in its entirety and replaced by the
following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided under this Contract shall be
computed by the application of a rate of .003% to the Company’s net premium written on the
business covered under Exhibits “A” and “B” subject to an annual minimum premium of $57,000 and
an annual deposit premium of $64,000 for the combined Sixth Excess of Loss Layer provided under
Exhibits “A” and “B”.”

It is hereby further mutually understood and agreed effective July 1, 1981, Liberty Mutual
(Bermuda) Ltd., shall be included as a named Reassured.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have
executed this Endorsement as of the dates undermentioned.

At Boston Massachusetts this 28th day of July, 1981

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY
 LIBERTY MUTUAL FIRE
INSURANCE COMPANY
 LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/	 	 
	 

	 	 	 	 	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT	 	 

and at Boston, Massachusetts this 13th day of August, 1981

	 	 	 	 	 	 	 

	 	 	GENERAL ACCIDENT FIRE & LIFE ASSURANCE

CORPORATION, LTD. (U.S. BRANCH) through 
BOSTON
REINSURANCE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/	 	 
	 

	 	 	 	 	 	 
	 

	 	TITLE:
	 	Vice President	 	 

EE/ms — 7/6/81

 

 

ENDORSEMENT NO. 2

to the

WORKERS’ COMPENSATION AND GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

BOSTON, MASSACHUSETTS

(hereinafter called the “Company”)

by

HOME INSURANCE COMPANY

NEW YORK, NEW YORK

(hereinafter called the “Reinsurer”)

It is
hereby mutually understood and agreed effective Midnight,
December 31, 1980, ARTICLE 3 – REINSURANCE PREMIUM, Paragraph (a), shall be deleted in its entirety and replaced by the
following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided under this Contract
shall be computed by the application of a rate of .003% to the Company’s net premium
written on the business covered under Exhibits “A” and “B” subject to an annual minimum
premium of $57,000 and an annual deposit premium of $64,000 for the combined Sixth
Excess of Loss Layer provided under Exhibits “A” and “B”.”

It is hereby further mutually understood and agreed effective July 1, 1981, Liberty Mutual
(Bermuda) Ltd., shall be included as a named Reassured.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have executed
this Endorsement as of the dates undermentioned.

	At Boston Massachusetts this 28th day of July, 1981

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/	 	 
	 

	 	 	 	 	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT	 	 

and at New York, New York this 14th day of August, 1981

	 	 	 	 	 	 	 

	 	 	HOME INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	Our Ref #3851

	 	BY:
	 	/s/ Charles F. McCarthy	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	CHARLES F. McCARTHY	 	 
	 

	 	TITLE:
	 	Assistant Secretary	 	 

EE/ms — 7/6/81

 

 

ENDORSEMENT NO. 2

to the

WORKERS’ COMPENSATION AND GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

BOSTON, MASSACHUSETTS

(hereinafter called the “Company”)

by

METROPOLITAN REINSURANCE COMPANY

NEWARK, DELAWARE

(hereinafter called the “Reinsurer”)

It is
hereby mutually understood and agreed effective Midnight,
December 31, 1980, ARTICLE 3 – REINSURANCE PREMIUM, Paragraph (a), shall be deleted in its entirety and replaced by the
following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided under this Contract
shall be computed by the application of a rate of .003% to the Company’s net premium
written on the business covered under Exhibits “A” and “B” subject to an annual minimum
premium of $57,000 and an annual deposit premium of $64,000 for the combined Sixth
Excess of Loss Layer provided under Exhibits “A” and “B”.”

It is hereby further mutually understood and agreed effective July 1, 1981, Liberty Mutual
(Bermuda) Ltd., shall be included as a named Reassured.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have executed
this Endorsement as of the dates undermentioned.

At Boston Massachusetts this 28th day of July, 1981

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/	 	 
	 

	 	 	 	 	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT	 	 

and at New York, New York this 12th day of August, 1981

	 	 	 	 	 	 	 

	 	 	METROPOLITAN REINSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/	 	 
	 

	 	 	 	 	 	 
	 

	 	TITLE:
	 	 	 	 

EE/ms — 7/6/81

 

 

ENDORSEMENT NO. 2

to the

WORKERS’ COMPENSATION AND GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

BOSTON, MASSACHUSETTS

(hereinafter called the “Company”)

by

NATIONWIDE MUTUAL INSURANCE COMPANY

COLUMBUS, OHIO

(hereinafter called the “Reinsurer”)

It is
hereby mutually understood and agreed effective Midnight,
December 31, 1980, ARTICLE 3 –
REINSURANCE PREMIUM, Paragraph (a), shall be deleted in its entirety and replaced by the
following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided under this Contract
shall be computed by the application of a rate of .003% to the Company’s net premium
written on the business covered under Exhibits “A” and “B” subject to an annual minimum
premium of $57,000 and an annual deposit premium of $64,000 for the combined Sixth
Excess of Loss Layer provided under Exhibits “A” and “B”.”

It is hereby further mutually understood and agreed effective July 1, 1981, Liberty Mutual
(Bermuda) Ltd., shall be included as a named Reassured.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have executed
this Endorsement as of the dates undermentioned.

At Boston Massachusetts this 28th day of July, 1981

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/	 	 
	 

	 	 	 	 	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT	 	 

and at Columbus, Ohio this 10 day of August, 1981

	 	 	 	 	 	 	 	 	 

	 	 	 	 	NATIONWIDE MUTUAL INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 
	BY:

	 	/s/	 	BY:
	 	/s/	 	 
	 

	 	 
	 	 	 	 	 	 
	
	 	Reinsurance Manager
	 	TITLE:
	 	Associate Vice President	 	 

EE/ms — 7/6/81

 

 

ENDORSEMENT NO. 2

to the

WORKERS’ COMPENSATION AND GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

BOSTON, MASSACHUSETTS

(hereinafter called the “Company”)

by

NEW
ENGLAND REINSURANCE CORPORATION

BOSTON, MASSACHUSETTS

(hereinafter called the “Reinsurer”)

It is
hereby mutually understood and agreed effective Midnight,
December 31, 1980, ARTICLE 3 – REINSURANCE PREMIUM, Paragraph (a), shall be deleted in its entirety and replaced by the
following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided under this Contract
shall be computed by the application of a rate of .003% to the Company’s net premium
written on the business covered under Exhibits “A” and “B” subject to an annual minimum
premium of $57,000 and an annual deposit premium of $64,000 for the combined Sixth
Excess of Loss Layer provided under Exhibits “A” and “B”.”

It is hereby further mutually understood and agreed effective July 1, 1981, Liberty Mutual
(Bermuda) Ltd., shall be included as a named Reassured.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have executed
this Endorsement as of the dates undermentioned.

At Boston Massachusetts this 28th day of July, 1981

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/	 	 
	 

	 	 	 	 	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT	 	 
	 
	and at Boston, Massachusetts this 11th day of August, 1981
	 

	 	 	NEW ENGLAND REINSURANCE CORPORATION

through: NERCO
              10122	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/	 	 
	 

	 	 	 	 	 	 
	 

	 	TITLE:
	 	Vice President	 	 

EE/ms — 7/6/81

 

 

ENDORSEMENT NO. 2

to the

WORKERS’ COMPENSATION AND GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

BOSTON, MASSACHUSETTS

(hereinafter called the “Company”)

by

PHILADELPHIA REINSURANCE CORPORATION

PHILADELPHIA, PENNSYLVANIA

(hereinafter called the “Reinsurer”)

It is
hereby mutually understood and agreed effective Midnight,
December 31, 1980, ARTICLE 3 – REINSURANCE PREMIUM, Paragraph (a), shall be deleted in its entirety and replaced by the
following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided under this Contract
shall be computed by the application of a rate of .003% to the Company’s net premium
written on the business covered under Exhibits “A” and “B” subject to an annual minimum
premium of $57,000 and an annual deposit premium of $64,000 for the combined Sixth
Excess of Loss Layer provided under Exhibits “A” and “B”.”

It is hereby further mutually understood and agreed effective July 1, 1981, Liberty Mutual
(Bermuda) Ltd., shall be included as a named Reassured.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have executed
this Endorsement as of the dates undermentioned.

At Boston Massachusetts this 28th day of July, 1981

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/	 	 
	 

	 	 	 	 	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT	 	 

and at Philadelphia, Pennsylvania this 11th day of August, 1981

	 	 	 	 	 	 	 

	 	 	PHILADELPHIA REINSURANCE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/	 	 
	 

	 	 	 	 	 	 
	 

	 	TITLE:
	 	SENIOR VICE PRESIDENT	 	 

EE/ms — 7/6/81

 

 

ENDORSEMENT NO. 2

to the

WORKERS’ COMPENSATION AND GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

BOSTON, MASSACHUSETTS

(hereinafter called the “Company”)

by

INTERCONTINENTAL RE, INC. for and on

behalf of: PURITAN INSURANCE COMPANY

(hereinafter called the “Reinsurer”)

It is
hereby mutually understood and agreed effective Midnight,
December 31, 1980, ARTICLE 3 – REINSURANCE PREMIUM, Paragraph (a), shall be deleted in its entirety and replaced by the
following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided under this Contract
shall be computed by the application of a rate of .003% to the Company’s net premium
written on the business covered under Exhibits “A” and “B” subject to an annual minimum
premium of $57,000 and an annual deposit premium of $64,000 for the combined Sixth
Excess of Loss Layer provided under Exhibits “A” and “B”.”

It is hereby further mutually understood and agreed effective July 1, 1981, Liberty Mutual
(Bermuda) Ltd., shall be included as a named Reassured.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have executed
this Endorsement as of the dates undermentioned.

At Boston Massachusetts this 28th day of July, 1981

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/	 	 
	 

	 	 	 	 	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT	 	 
	 
	and at Los Angeles, California this 3rd day of September, 1981
	 

	 	 	INTERCONTINENTAL RE, INC. for and on
behalf of: PURITAN INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ Frederick C. Easty	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Frederick C. Easty	 	 
	 

	 	TITLE:
	 	Senior Vice President	 	 

EE/ms — 7/6/81

 

 

ENDORSEMENT NO. 2

to the

WORKERS’ COMPENSATION AND GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

BOSTON, MASSACHUSETTS

(hereinafter called the “Company”)

by

PRUDENTIAL
REINSURANCE COMPANY

DOVER, DELAWARE

(hereinafter called the “Reinsurer”)

It is hereby mutually understood and agreed effective Midnight, December 31, 1980,
ARTICLE 3 – REINSURANCE PREMIUM, Paragraph (a), shall be deleted in its entirety
and replaced by the following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided under this
Contract shall be computed by the application of
a rate of .003% to the Company’s net premium written on the business
covered under Exhibits “A” and “B” subject to an annual minimum premium
of $57,000 and an annual deposit premium of $64,000 for the combined
Sixth Excess of Loss Layer provided under Exhibits “A” and “B”.”

It is hereby further mutually understood and agreed effective July 1, 1981, Liberty
Mutual (Bermuda) Ltd., shall be included as a named Reassured.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have
executed this Endorsement as of the dates undermentioned.

At Boston Massachusetts this 28th day of July, 1981

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY 

LIBERTY MUTUAL FIRE INSURANCE COMPANY
 LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:

TITLE:
	 	/s/
 

VICE PRESIDENT
	 	 

and at
 Newark, New Jersey this
25th day of August, 1981

	 	 	 	 	 	 	 

	 	 	PRUDENTIAL REINSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	

EE/ms – 7/6/81

	 	BY:

TITLE:
	 	/s/
 

Assoc. Mgr.
	 	 

 

 

ENDORSEMENT NO. 2

to the

WORKERS’ COMPENSATION AND GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

BOSTON, MASSACHUSETTS

(hereinafter called the “Company”)

by

REINSURANCE COMPANY OF AMERICA, INC.

CHICAGO, ILLINOIS

(hereinafter called the “Reinsurer”)

It is hereby mutually understood and agreed effective Midnight, December 31, 1980,
ARTICLE 3 – REINSURANCE PREMIUM, Paragraph (a), shall be deleted in its entirety
and replaced by the following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance
provided under this Contract shall be computed by the application of a rate of .003% to the Company’s net premium
written on the business covered under Exhibits “A” and “B”
subject to an annual minimum premium of $57,000 and an
annual deposit premium of $64,000 for the combined Sixth
Excess of Loss Layer provided under Exhibits “A” and
“B”.”

It is hereby further mutually understood and agreed effective July 1,
1981, Liberty Mutual (Bermuda) Ltd., shall be included as a named
Reassured.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly
authorized officers have executed this Endorsement as of the dates
undermentioned.

At Boston
Massachusetts this 28th day of July, 1981

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY 
LIBERTY MUTUAL
FIRE INSURANCE COMPANY 
LIBERTY MUTUAL (BERMUDA)
LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:

TITLE:
	 	/s/
 
VICE PRESIDENT
	 	 

and at Chicago, Illinois this 4th day of September, 1981

	 	 	 	 	 	 	 

	 	 	REINSURANCE COMPANY OF
AMERICA, INC.	 	 
	 
	 	 	 	 	 	 
	EE/ms – 7/6/81

	 	BY:

TITLE:
	 	/s/
 

	 	 

 

 

ENDORSEMENT NO. 2

to the

WORKERS’ COMPENSATION AND GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

 BOSTON, MASSACHUSETTS

(hereinafter called the “Company”)

by

SECURITY INSURANCE COMPANY OF HARTFORD

Through: MASSACHUSETTS REINSURANCE CORPORATION

(hereinafter called the “Reinsurer”)

It is hereby mutually understood and agreed effective Midnight, December 31, 1980,
ARTICLE 3 — REINSURANCE PREMIUM, Paragraph (a), shall be deleted in its
entirety and replaced by the following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided under this Contract
shall be computed by the application of a rate of .003% to the Company’s net
premium written on the business covered under Exhibits “A” and “B” subject to an
annual minimum premium of $57,000 and an annual deposit premium of $64,000 for the
combined Sixth Excess of Loss Layer provided under Exhibits “A” and “B”.”

It is hereby further mutually understood and agreed effective July 1, 1981, Liberty
Mutual (Bermuda): Ltd., shall be included as a named Reassured.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have executed
this Endorsement as of the dates undermentioned.

At Boston Massachusetts this 28th day of July, 1981

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 
	 	BY:

TITLE:
	 	/s/
 

VICE PRESIDENT
	 	 

and at Boston, Massachusetts this 27th day of August, 1981

	 	 	 	 	 	 	 

	 	 	SECURITY INSURANCE COMPANY OF HARTFORD

Through: MASSACHUSETTS REINSURANCE

CORPORATION	 	 
	 
	 	 	 	 	 	 
	Mass Re Treaty No.

113A-02A
	 	BY:
	 	/s/ David Forrest
 

DAVID FORREST
	 	 
	EE/ms — 7/6/81
	 	TITLE:
	 	VICE PRESIDENT	 	 

 

 

ENDORSEMENT NO. 2

to the

WORKERS’ COMPENSATION AND GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

BOSTON, MASSACHUSETTS

(hereinafter called the “Company”)

by

INTERCONTINENTAL RE, INC. for and on behalf

Of: UNION INDEMNITY INSURANCE COMPANY OF NEW YORK

(hereinafter called the “Reinsurer”)

It is
hereby mutually understood and agreed effective Midnight,
December 31, 1980, ARTICLE 3 — REINSURANCE PREMIUM, Paragraph (a), shall be deleted in its entirety and replaced by the
following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided under this Contract
shall be computed by the application of a rate of .003% to the Company’s net
premium written on the business covered under Exhibits “A” and “B” subject to an
annual minimum premium of $57,000 and an annual deposit premium of $64,000 for the
combined Sixth Excess of Loss Layer provided under Exhibits “A” and “B”.”

It is hereby further mutually understood and agreed effective July  1, 1981, Liberty Mutual
(Bermuda): Ltd., shall be included as a named Reassured.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have
executed this Endorsement as of the dates undermentioned.

At Boston Massachusetts this 28th day of July, 1981

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:

TITLE:
	 	/s/
 

VICE PRESIDENT
	 	 

and at
Los  Angeles, California this 3rd day of September, 1981

	 	 	 	 	 	 	 

	 	 	INTERCONTINENTAL RE, INC. for and on
behalf of:
UNION INDEMNITY INSURANCE
COMPANY OF
NEW YORK	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ Frederick C. Easty
 

Frederick C. Easty
	 	 
	EE/ms — 7/6/81

	 	TITLE:
	 	Senior Vice President	 	 

 

 

ENDORSEMENT NO. 2

to the

WORKERS’ COMPENSATION AND GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

BOSTON, MASSACHUSETTS

(hereinafter called the “Company”)

by

ZURICH INSURANCE COMPANY

ZURICH, SWITZERLAND

(hereinafter called the “Reinsurer”)

It is
hereby mutually understood and agreed effective Midnight,
December 31, 1980, ARTICLE 3 — REINSURANCE PREMIUM, Paragraph (a), shall be deleted in its entirety and replaced by the
following:

	 	“(a)	 	 The Reinsurers’ premium for the reinsurance provided under this Contract shall be computed by
the application of a rate of .003% to the Company’s net premium written on the business covered
under Exhibits “A” and “B” subject to an annual minimum premium of $57,000 and an annual deposit
premium of $64,000 for the combined Sixth Excess of Loss Layer provided under Exhibits “A” and
“B”.”

It is hereby further mutually understood and agreed effective July 1, 1981, Liberty Mutual
(Bermuda): Ltd., shall be included as a named Reassured.

All other
terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have executed
this Endorsement as of the dates undermentioned.

At Boston
Massachusetts this 28th day of July, 1981

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:

TITLE:
	 	/s/
 

VICE PRESIDENT
	 	 

and at
Zurich, Switzerland this 18th day of August, 1981

	 	 	 	 	 	 	 

	 	 	ZURICH INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	
EE/ms — 7/6/81

	 	BY:

TITLE:
	 	/s/
 

Our Ref. No.: 61.433
	 	 

 

 

ENDORSEMENT NO. 2

to the

WORKERS’ COMPENSATION AND GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

BOSTON, MASSACHUSETTS

(hereinafter called the “Company”)

by

ALLSTATE INSURANCE COMPANY

NORTHBROOK, ILLINOIS

(hereinafter called the “Reinsurer”)

It is hereby mutually understood and agreed effective Midnight, December 31, 1980, ARTICLE
3 — REINSURANCE PREMIUM, Paragraph (a), shall be deleted in its entirety and replaced by
the following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided under this Contract
shall be computed by the application of a rate of .003% to the
Company’s net premium written on the business covered under Exhibits “A” and “B” subject to an annual
minimum premium of $57,000 and an annual deposit premium of $64,000 for the combined Sixth Excess of Loss Layer provided under Exhibits “A” and “B”.”

It is hereby further mutually understood and agreed effective July 1, 1981, Liberty Mutual
(Bermuda): Ltd., shall be included as a named Reassured.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have executed
this Endorsement as of the dates undermentioned.

At Boston
Massachusetts this 28th day of July, 1981

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/	 	 
	 

	 	 	 	 	 	 
	 	 	TITLE: VICE PRESIDENT	 	 

and at
Northbrook, Illinois this 12th day of November, 1981

	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	ALLSTATE INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	BY:

	 	/s/
 

Sec’y to Reins Dept.
	 	 	 	BY:
TITLE:
	 	/s/
 

Underwriting Director
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	EE/ms — 7/6/81	 	 	 		 	 

 

RE5986G

ENDORSEMENT
NO. 2

to the 

WORKERS’ COMPENSATION AND GENERAL LIABILITY 
SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

BOSTON, MASSACHUSETTS

(hereinafter called the “Company”)

by

VARIOUS UNDERWRITERS AT LLOYD’S LONDON

(hereinafter called the “Reinsurer”)

It is hereby mutually understood and agreed effective Midnight, December 31, 1980, ARTICLE
3 — REINSURANCE PREMIUM, Paragraph (a), shall be deleted in its entirety and replaced by
the following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided under this
Contract shall be computed by the application of a rate of .003% to the Company’s net
premium written on the business covered under Exhibits “A” and “B” subject to an
annual minimum premium of $57,000 and an annual deposit premium of $64,000 for the
combined Sixth Excess of Loss Layer provided under Exhibits “A” and “B”.”

It is hereby further mutually understood and agreed effective July
1, 1981, Liberty Mutual (Bermuda): Ltd., shall be included as a named Reassured.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have
executed this Endorsement as of the dates undermentioned.

At Boston Massachusetts this 28th day of July, 1981

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY 
 LIBERTY MUTUAL
FIRE INSURANCE COMPANY 
LIBERTY MUTUAL (BERMUDA) LTD.
	 
	 	 	 	 	 	 
	 

	 	BY:

TITLE:
	 	/s/
 

VICE PRESIDENT
	 	 
	 
	 	 	 	 	 	 
		 	 
	 
	 	 	 	 	 	 
	and at London, England this 19th day of November, 1981
	 
	 	 	 	 	 	 
	VARIOUS LLOYD’S UNDERWRITERS 
(AS PER ATTACHED SCHEDULE).
	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:	 	 	 	 
	 

	 	 	 	 	 	 
	EE/ms — 7/6/81

	 	TITLE:	 	 	 	 
	 

	 	 	 	 	 	 

 

RE5986G

ENDORSEMENT
NO. 2

to the 

WORKERS’ COMPENSATION AND GENERAL LIABILITY

 SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

BOSTON, MASSACHUSETTS

(hereinafter called the “Company”)

by

CERTAIN INSURANCE COMPANIES

(hereinafter called the “Reinsurer”)

	It is hereby mutually understood and agreed effective Midnight, December 31, 1980,
ARTICLE 3 — REINSURANCE PREMIUM, Paragraph (a), shall be deleted in its entirety and
replaced by the following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided
under this Contract shall be computed by the application of a rate of .003% to
the Company’s net premium written on the business covered under Exhibits “A”
and “B” subject to an annual minimum premium of $57,000 and an annual deposit
premium of $64,000 for the combined Sixth Excess of Loss Layer provided under
Exhibits “A” and “B”.”

It is hereby further mutually understood and agreed effective July 1, 1981, Liberty Mutual
(Bermuda): Ltd., shall be included as a named Reassured.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have executed
this Endorsement as of the dates undermentioned.

At Boston Massachusetts this 28th day of July, 1981

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY
 LIBERTY
MUTUAL FIRE INSURANCE COMPANY 
 LIBERTY MUTUAL
(BERMUDA) LTD.
	 
	 	 	 	 
	 

	 	BY:

TITLE:
	 	/s/
 

VICE PRESIDENT
	 	 
	 
	 	 	 	 	 	 
	and at London, England this 19th day of November, 1981	 	 
	 
	 	 	 	 
	VARIOUS INSURANCE
COMPANIES
(AS PER ATTACHED SCHEDULE).    
	 	 
	 
	 	 	 	 	 	 
		 	 
	 
	 	 	 	 	 	 
	 

	 	BY:	 	 	 	 
	 

	 	 	 	 	 	 
	EE/ms
— 7/6/81

	 	TITLE:	 	 	 	 
	 

	 	 	 	 	 	 

 

Underwriters signed lines hereon are in percentages of the total reinsurance provided
herein.

The share attaching to this contract is subscribed by the
Underwriters, Members of the Syndicates the definitive numbers of which and the proportions reinsured are contained in the schedule attached.

Attaching
to and forming part of Lloyd’s Contract
No. RE 5986G.

 

     Now Know Ye that We the Underwriters, Members of the Syndicates whose definitive
numbers in the after-mentioned List of Underwriting Members of Lloyd’s are set out in the attached
Table, hereby bind ourselves each for his own part and not one for another, our Heirs, Executors
and Administrators, and in respect of his due proportion only, to pay or make good to the Assured
or to the Assured’s Executors or Administrators or to indemnify him or them against all such loss,
damage or liability as herein provided, such payment to be made after such loss, damage or
liability is proved and the due proportion for which each of us, the Underwriters, is liable shall
be ascertained by reference to his share, as shown in the said List, of the Amount, Percentage or
Proportion of the total sum insured hereunder which is in the Table set opposite the definitive
number of the Syndicate of which such Underwriter is a Member AND FURTHER THAT the List of
Underwriting Members of Lloyd’s referred to above shows their respective Syndicates and Shares
therein, is deemed to be incorporated in and to form part of this policy, bears the number
specified in the attached Table and is available for inspection at Lloyd’s Policy Signing Office by
the Assured or his or their representatives and a true copy of the material parts of the said List
certified by the General Manager of Lloyd’s Policy Signing Office will be furnished to the Assured
on application.

     In Witness whereof the General Manager of Lloyd’s Policy Signing Office has subscribed
his name on behalf of each of us.

	 	 	 

	(NM)

	 	LLOYD’S POLICY SIGNING OFFICE,
	 

	 	
	 

	 	General Manager.

	 	 	 

	Definitive Numbers of Syndicates
and Amount, Percentage or Proportion of
the Total Sum insured hereunder shared
between the Members of those
Syndicates.

	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	FOR LPSO USE ONLY	 	BROKER	 	LPSO NO & DATE	 	 	 	FOR LPSO USE ONLY	 	BROKER	 	LPSO NO & DATE	 	 
	2723	 	614	 	65439 25| 2| 81	 	 	 	OMD33R 2010	 	614	 	65439 25| 2| 81	 	 
		 	 	 	 	 	 	 	 	 	2724	 	 	 	 	 	 
	AMOUNT, PERCENTAGE	 	SYNDICATE	 	UNDERWRITER’S REF.	 	PAGE	 	AMOUNT, PERCENTAGE	 	SYNDICATE	 	UNDERWRITER’S REF.	 	PAGE
	OR PROPORTION	 	 	 	 	 	 	 	1	 	OR PROPORTION	 	 	 	 	 	 	 	2
	PERCENT
	 	 	 	 	 	 	 	 	 	PERCENT	 	 	 	 	 	 	 	 
	2.96
	 	 	799	 	 	MT70570221	 	 	 	3.45	 	 	126	 	 	51397518XJ81	 	 
	3.84
	 	 	618	 	 	NA8956227N15	 	 	 	1.48	 	 	701	 	 	51397518XJ81	 	 
	0.35
	 	 	278	 	 	NA8956227N15	 	 	 	0.33	 	 	674	 	 	C  SHU S00270	 	 
	0.74
	 	 	948	 	 	NA8956227N15	 	 	 	0.66	 	 	263	 	 	JXF5136X0250	 	 
	1.30
	 	 	918	 	 	951470100431	 	 	 	0.26	 	 	598	 	 	07009078	 	
	2.46
	 	 	694	 	 	84  90K  XX10198	 	 	 	0.07	 	 	453	 	 	07009078	 	 
	0.99
	 	 	471	 	 	AXX503	 	 	 	0.49	 	 	204	 	 	1511000T1	 	 
	1.30
	 	 	109	 	 	06X3033	 	 	 	0.49	 	 	780	 	 	5N516TT	 	 
	0.99
	 	 	243	 	 	7800C	 	 	 	0.33	 	 	365	 	 	12D0847	 	 
	0.99
	 	 	452	 	 	2050000B1330	 	 	 	 	 	 	 	 	 	 	 	 
	0.49	 	 	56	 	 	X2509328X	 	 	 	THE LIST OF UNDERWRITING MEMBERS	 	 
	0.17	 	 	319	 	 	53XA16D0XXXX	 	 	 	OF LLOYDS IS NUMBERRED 1981/ 2	 	 
	1.67
	 	 	727	 	 	9N697X2924	 	 	 	 	 	 	 	 	 	 	 	 
	0.30
	 	 	727	 	 	9N696X2924	 	 	 	 	 	 	 	 	 	 	 	 
	0.37
	 	 	55	 	 	0520C999L1BE	 	 	 	 	 	 	 	 	 	 	 	 
	0.12
	 	 	612	 	 	0520C999L1BE	 	 	 	 	 	 	 	 	 	 	 	 
	 
	TOTAL LINE
	 	NO OF SYND.	 	FOR LPSO USE ONLY	 	 	 	TOTAL LINE	 	NO. OF SYND.	 	FOR LPSO USE ONLY	 	 
	 
	 	 	 	 	 	 	 	 	 	26.60	 	 	25	 	 	12190	 	 

FOR EMBOSSMENT

BY LLOYD’S POLICY

SIGNING OFFICE

 

 

RE5986G

SIGNING SCHEDULE

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

 

It is understood and agreed that, effective 31st December, 1980, Reinsurers signed
lines, which are in percentages of the total reinsurance provided herein, are as follows
and not as stated heretofore.

	 	 	 	 	 	 	 	 	 
	LIABILITY	 	 	 	REINSURERS	 	 	 	REFERENCE
	 	 	( 34%	 	TOWER HILL INSURANCE COMPANY
	 	 	 	 
	 	 	(	 	LIMITED
	 	 	 	 
	 	 	(  9%	 	CITY INSURANCE COMPANY (UK)
	 	 	 	 
	 	 	(	 	LIMITED
	 	 	 	 
	 	 	(  12%	 	FUJI , FIRE & MARINE INSURANCE
	 	 	 	 
	 	 	(	 	COMPANY (UK) LIMITED
	 	 	 	 
	1 .30%	 	( 9%	 	LOMBARD INSURANCE COMPANY (UK)
	 	B6022	 	81CL01558XAABA
	 	 	(	 	LIMITED
	 	 	 	 
	 	 	(  12%	 	NIPPON FIRE & MARINE INSURANCE
	 	 	 	 
	 	 	(	 	COMPANY (UK) LIMITED
	 	 	 	 
	 	 	( 12%	 	POHJOLA INSURANCE COMPANY (UK)
	 	 	 	 
	 	 	(	 	LIMITED
	 	 	 	 
	 	 	( 12%	 	ENGLISH AND AMERICAN INSURANCE
	 	 	 	 
	 	 	(	 	COMPANY LIMITED
	 	 	 	 
	 	 	 	 	Per: C.T. Bowring (Underwriting
	 	 	 	 
	 	 	 	 	Services) Limited.
	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	1.65%	 	 	 	SCAN RE INSURANCE COMPANY
	 	S4109	 	8111338T3300
	 	 	 	 	LIMITED
	 	 	 	A2GB0335250
	 	 	 	 	 
	 	 	 	 
	 	 	( 12.50%	 	SOVEREIGN MARINE AND GENERAL
	 	 	 	 
	 	 	(	 	INSURANCE COMPANY LIMITED
	 	 	 	 
	 	 	( 37.50%	 	TOKIO MARINE AND FIRE
	 	 	 	 
	 	 	(	 	INSURANCE COMPANY (UK)
	 	 	 	 
	 	 	(	 	LIMITED
	 	 	 	 
	1.48%	 	( 25.00%	 	TAISHO MARINE AND FIRE
	 	S0016	 	S348981
	 	 	(	 	INSURANCE COMPANY (UK)
	 	 	 	 
	 	 	(	 	LIMITED
	 	 	 	 
	 	 	( 15.00%	 	ALLIANZ INTERNATIONAL
	 	 	 	 
	 	 	(	 	INSURANCE COMPANY LIMITED
	 	 	 	 
	 	 	( 10.00%	 	STOREBRAND INSURANCE COMPANY
	 	 	 	 
	 	 	(	 	(UK) LIMITED
	 	 	 	 
	 	 	 	 	Per: Willis Faber Underwriting
	 	 	 	 
	 	 	 	 	Management Limited.
	 	 	 	 

 

 

- 2 -

RE5986G

	 	 	 	 	 	 	 	 	 
	LIABILITY	 	 	 	REINSURERS	 	 	 	REFERENCE
	0.65%	 	 	 	CNA REINSURANCE OF LONDON
	 	C4009	 	E061267
	 	 	 	 	LIMITED
	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	( 50.00%	 	SUMITOMO MARINE AND FIRE
	 	 	 	 
	 	 	(	 	INSURANCE COMPANY (EUROPE)
	 	 	 	 
	 	 	(	 	LIMITED
	 	 	 	 
	0.66%	 	( 25.00%	 	SOUTH BRITISH INSURANCE COMPANY
	 	R0126	 	8181555
	 	 	(	 	LIMITED
	 	 	 	366330405240
	 	 	( 25.00%	 	GOTHAER VERSICHERUNGS BANK VVaG
	 	 	 	 
	 	 	 	 	Per: Regis Underwriting Agencies
	 	 	 	 
	 	 	 	 	Limited.
	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	5.74%	 	 	 	 
	 	 	 	 
	 	 	 	 	 
	 	 	 	 

					
	 	 	 	 	 
	Signed in London, England, this
	 	day of
	 	1981.

NOW KNOW YE that We, the Reinsurers each of us to the extent of the amount/percentage
underwritten by us respectively, do hereby assume the burden of the Reinsurance, and
promise and bind ourselves, each for itself only and not one for the other and in respect
only of the due proportion of each of us, to the Reinsured, their Executors,
Administrators and Assigns, for the true performance and fulfilment of this Contract.

IN WITNESS WHEREOF the Policy Signing Manager of THE POLICY SIGNING & ACCOUNTING CENTRE
LIMITED (“PSAC”) has subscribed his name on behalf of each of the PSAC Companies and
(where the Companies Collective Signing Agreement (“CCSA”) is being implemented) on behalf
of the Leading CCSA Company which is a PSAC member and authorised to sign this Contract
(either itself or by delegation to PSAC} on behalf of all the other CCSA Companies.

	 	 	 	 	 

	

	 		 	 
	Signed:

	 	 

Policy Signing Manager
	 	 

Policy
Department Seal

S/AGC/KM          P8102230001808

(SS5982.7-8)        P8102230001816

 

ENDORSEMENT NO. 3

to the

WORKERS’ COMPENSATION & GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.

(hereinafter called the “Company”)

by

AMERICAN UNION INSURANCE COMPANY OF NEW YORK

INDIANAPOLIS, INDIANA

(hereinafter called the “Reinsurer”)

It is hereby mutually understood and agreed effective Midnight December 31, 1981, the
following changes shall be made to this Contract:

	1.	 	ARTICLE 3 — REINSURANCE PREMIUM, Paragraphs (a) and (b) shall be deleted in their
entirety and replaced by the following:

	 	“(a) 	 	The Reinsurers’ premium for the reinsurance provided
under this Contract shall be computed by the application of a rate of .0033% to
the Company’s net premium written on the business covered under Exhibits ‘A’ and
‘B’ subject to an annual minimum and deposit premium of $62,000 for the combined
Sixth Excess of Loss Layer provided under Exhibits ‘A’ and ‘B’.
	 
	 	 (b)	 	The minimum and deposit premium as provided for in (a) above shall be
payable to Reinsurers in four equal quarterly installments at the beginning of each
calendar quarter. The Company shall undertake to furnish Reinsurers at the
conclusion of each year, a report of the net premiums written during such year. If
the annual developed reinsurance premium for the Sixth Excess of Loss Reinsurance
under Exhibits ‘A’ and ‘B’ computed in accordance with the provisions of (a) above
is greater than the minimum and deposit premium, the additional premium shall be
promptly paid to the Reinsurers.”

	2.	 	ARTICLE 10 — OFFSET CLAUSE, shall be deleted in its entirety and replaced by the
following:
	 
	 	 	“ARTICLE 10 — OFFSET CLAUSE
	 
	 	 	Each party hereto shall have the right to offset any balance or balances, whether on
account of premiums or on account of losses, due from one party to any other party under this
Contract, against any balance or balances currently due and payable to the one party from the
other party under this Contract.”

 

 

 - 2 - 

	3.	 	SECTION 2 — LIMIT OF LIABILITY, the Third Paragraph, as contained in EXHIBIT A, EXCESS OF LOSS REINSURANCE OF GENERAL
LIABILITY, shall be deleted in its entirety and replaced by
the following:
	 
	 	 	“For purposes of this Exhibit, it is agreed that the Company’s limit of liability under any
and all policies of Personal Accident Insurance (individual and group) covering any one
individual shall be considered as not exceeding $300,000. Subject to this Agreement and
subject to the limits set forth in this Section 2, it is agreed that the Company is
reinsured hereunder for the excess of the amounts set forth in this Section 2 of ultimate
net loss any one accident, or series of accidents arising out of one event involving more
than one person covered under such policies issued by the Company.”
	 
	4.	 	SECTION 4 — DEFINITION OF “EACH AND EVERY
ACCIDENT OR OCCURRENCE”, paragraph A. of EXHIBIT A, EXCESS OF LOSS
REINSURANCE OF GENERAL LIABILITY, shall be deleted in its
entirety.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have executed
this Endorsement as of the dates undermentioned.

At Boston, Massachusetts this 23rd day of April, 1982

	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY
	 	 	LIBERTY MUTUAL FIRE INSURANCE COMPANY
	 	 	LIBERTY MUTUAL (BERMUDA) LTD.
	 
	 	 	 	 
	 

	 	BY:
	 	/s/ [ILLEGIBLE]
	 

	 	 	 	 
	 	 	TITLE:	 	VICE PRESIDENT

and at Indianapolis, Indiana this 2nd day of June, 1982

	 	 	 	 	 

	 	 	AMERICAN UNION INSURANCE COMPANY OF
	 	 	     NEW YORK
	 
	 	 	 	 
	 

	 	BY:
	 	/s/ [ILLEGIBLE]
	 

	 	 	 	 
	 	 	TITLE: 	 	ASST. VICE PRESIDENT

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

EE/ms — 4/1/82

 

 

ENDORSEMENT NO. 3

to the

WORKERS’ COMPENSATION & GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.

(hereinafter called the “Company”)

by

DOMINION INSURANCE COMPANY OF AMERICA

NEW YORK, NEW YORK

(hereinafter called the “Reinsurer”)

It is hereby mutually understood and agreed effective Midnight December 31, 1981, the
following changes shall be made to this Contract:

	1.	 	ARTICLE 3 — REINSURANCE PREMIUM, Paragraphs (a) and (b) shall
be deleted in their entirety and replaced by the following:

	 	“(a) 	 	 The Reinsurers’ premium for the reinsurance provided
under this Contract shall be computed by the application of a rate of .0033% to
the Company’s net premium written on the business covered under Exhibits ‘A’ and
‘B’ subject to an annual minimum and deposit premium of $62,000 for the combined
Sixth Excess of Loss Layer provided under Exhibits ‘A’ and ‘B’.
	 
	 	 (b)	 	The minimum and deposit premium as provided for in (a) above shall be
payable to Reinsurers in four equal quarterly installments at the beginning of each
calendar quarter. The Company shall undertake to furnish Reinsurers at the
conclusion of each year a report of the net premiums written during such year. If
the annual developed reinsurance premium for the Sixth Excess of Loss Reinsurance
under Exhibits ‘A’ and ‘B’ computed in accordance with the provisions of (a) above
is greater than the minimum and deposit premium, the additional premium shall be
promptly paid to the Reinsurers.”

	2.	 	ARTICLE 10 — OFFSET CLAUSE, shall be deleted in its entirety
and replaced by the following:
	 
	 	 	“ARTICLE 10 — OFFSET CLAUSE
	 
	 	 	Each party hereto shall have the right to offset any balance or balances, whether on account of
premiums or on account of  losses, due from one party to any other party under this
Contract, against any balance or balances currently due and payable to the one party from the
other party under this Contract.”

 

 

 - 2 - 

	3.	 	SECTION 2 — LIMIT OF LIABILITY, the Third Paragraph, as contained in EXHIBIT A, EXCESS OF LOSS REINSURANCE OF GENERAL
LIABILITY, shall be deleted in its entirety and replaced by
the following:
	 
	 	 	“For purposes of this Exhibit, it is agreed that the Company’s limit of liability under any
and all policies of Personal Accident Insurance (individual and group) covering any one
individual shall be considered as not exceeding $300,000. Subject to this Agreement and
subject to the limits set forth in this Section 2, it is agreed that the Company is
reinsured hereunder for the excess of the amounts set forth in this Section 2 of ultimate
net loss any one accident, or series of accidents arising out of one event involving more
than one person covered under such policies issued by the Company.”
	 
	4.	 	SECTION 4 — DEFINITION OF “EACH AND EVERY ACCIDENT OR
OCCURRENCE”, paragraph A. of EXHIBIT A, EXCESS OF LOSS
REINSURANCE OF GENERAL LIABILITY, shall be deleted in its entirety.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have executed
this Endorsement as of the dates undermentioned.

At Boston, Massachusetts this 23rd day of April, 1982

	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY
	 	 	LIBERTY MUTUAL FIRE INSURANCE COMPANY
	 	 	LIBERTY MUTUAL (BERMUDA) LTD.
	 
	 	 	 	 
	 

	 	BY:
	 	/s/ [ILLEGIBLE]
	 

	 	 	 	 
	 	 	TITLE:	 	 VICE PRESIDENT

and at New York, New York this 6th day of July, 1982

	 	 	 	 	 

	 	 	DOMINION INSURANCE COMPANY OF AMERICA
	 
	 	 	 	 
	 

	 	BY:
	 	/s/ [ILLEGIBLE]
	 

	 	 	 	 
	 	 	TITLE:	 	Senior Vice President

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

EE/ms — 4/1/82

 

 

ENDORSEMENT NO. 3

to the

WORKERS’ COMPENSATION & GENERAL LIABILITY 
SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY 
LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.
(hereinafter called the “Company”)

by

ZURICH INSURANCE COMPANY

ZURICH, SWITZERLAND

(hereinafter called the “Reinsurer”)

It is hereby mutually understood and agreed effective Midnight December 31, 1981, the
following changes shall be made to this Contract:

	1.	 	ARTICLE 3 — REINSURANCE PREMIUM, Paragraphs (a) and (b) shall be deleted in their
entirety and replaced by the following:

	 	“(a) 	 	 The Reinsurers’ premium for the reinsurance provided
under this Contract shall be computed by the application of a rate of .0033% to
the Company’s net premium written on the business covered under Exhibits ‘A’ and
‘B’ subject to an annual minimum and deposit premium of $62,000 for the combined
Sixth Excess of Loss Layer provided under Exhibits ‘A’ and ‘B’.
	 
	 	 (b)	 	The minimum and deposit premium as provided for in (a) above shall be
payable to Reinsurers in four equal quarterly installments at the beginning of each
calendar quarter. The Company shall undertake to furnish Reinsurers at the
conclusion of each year a report of the net premiums written during such year. If
the annual developed reinsurance premium for the Sixth Excess of Loss Reinsurance
under Exhibits ‘A’ and ‘B’ computed in accordance with the provisions of (a) above
is greater than the minimum and deposit premium, the additional premium shall be
promptly paid to the Reinsurers.”

	2.	 	ARTICLE 10 — OFFSET CLAUSE, shall be deleted in its entirety and replaced by the
following:
	 
	 	 	“ARTICLE 10 — OFFSET CLAUSE
	 
	 	 	Each party hereto shall have the right to offset any balance or balances, whether on
account of premiums or on account of losses, due from one party to any other party under this
Contract, against any balance or balances currently due and payable to the one party from the
other party under this Contract.”

 

 

 - 2 - 

	3.	 	SECTION 2 — LIMIT OF LIABILITY, the Third
Paragraph, as contained in EXHIBIT A,
EXCESS OF LOSS REINSURANCE OF GENERAL LIABILITY, shall be deleted in its entirety and
replaced by the following:
	 
	 	 	“For purposes of this Exhibit, it is agreed that the Company’s limit of liability under any
and all policies of Personal Accident Insurance (individual and group) covering any one
individual shall be considered as not exceeding $300,000. Subject to this Agreement and
subject to the limits set forth in this Section 2, it is agreed that the Company is
reinsured hereunder for the excess of the amounts set forth in this Section 2 of
ultimate net loss any one accident, or series of accidents arising
out of one event
involving more than one person covered under such policies issued by the Company.”
	 
	4.	 	SECTION 4 — DEFINITION OF “EACH AND EVERY ACCIDENT OR OCCURRENCE”,
paragraph A. of EXHIBIT A, EXCESS OF LOSS REINSURANCE OF GENERAL LIABILITY,
shall be deleted in its entirety.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have executed
this Endorsement as of the dates undermentioned.

At Boston, Massachusetts this 23rd day of April, 1982

	 	 	 	 	 

	 	 	LIBERTY	 	MUTUAL INSURANCE COMPANY
	 	 	LIBERTY	 	MUTUAL FIRE INSURANCE COMPANY
	 	 	LIBERTY	 	MUTUAL (BERMUDA) LTD.
	 
	 	 	 	 
	 

	 	BY:
	 	/s/ [ILLEGIBLE]
	 

	 	 	 	 
	 	 	TITLE:	 	VICE PRESIDENT

and at Zurich, Switzerland this 4th day of June, 1982

	 	 	 	 	 

	 

	ZURICH INSURANCE COMPANY
	 
	 	 	 	 
	 

	By: 	/s/ [ILLEGIBLE]	 	 
	 	 	 
	 

	TITLE: 	 	 	 
	 
	 

	Our Treaty No.: 61.433	 

SIXTH
EXCESS OF LOSS REINSURANCE CONTRACT

EE/ms  — 4/1/82

 

 

ENDORSEMENT NO. 3

to the

WORKERS’ COMPENSATION & GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.

(hereinafter called the “Company”)

by

SECURITY INSURANCE COMPANY OF HARTFORD

Through: MASSACHUSETTS REINSURANCE CORPORATION

(hereinafter called the “Reinsurer”)

It is hereby mutually understood and agreed effective Midnight December 31, 1981, the
following changes shall be made to this Contract:

	1.	 	ARTICLE 3 — REINSURANCE PREMIUM, Paragraphs (a) and (b) shall
be deleted in their entirety and replaced by the following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided
under this Contract shall be computed by the application of a rate of .0033% to the Company’s net premium written on the business covered under Exhibits
‘A’ and ‘B’ subject to an annual minimum and deposit premium of $62,000 for the
combined Sixth Excess of Loss Layer provided under Exhibits ‘A’ and ‘B’.
	 
	 	(b)	 	The minimum and deposit premium as provided for in (a) above shall be
payable to Reinsurers in four equal quarterly installments at the beginning of each
calendar quarter. The Company shall undertake to furnish Reinsurers at the
conclusion of each year a report of the net premiums written during such year. If
the annual developed reinsurance premium for the Sixth Excess of Loss Reinsurance
under Exhibits ‘A’ and ‘B’ computed in accordance with the provisions of (a) above
is greater than the minimum and deposit premium, the additional premium shall be
promptly paid to the Reinsurers.”

	2.	 	ARTICLE 10 — OFFSET CLAUSE, shall be deleted in its entirety
and replaced by the following:
	 
	 	 	“ARTICLE 10 — OFFSET CLAUSE
	 
	 	 	Each party hereto shall have the right to offset any balance or balances, whether on
account of premiums or on account of losses, due from one party to any other party under this
Contract, against any balance or balances currently due and payable to the one party from the
other party under this Contract.”

 

 

-2- 

	3.	 	SECTION 2 — LIMIT OF LIABILITY, the Third Paragraph, as contained in EXHIBIT A, EXCESS OF LOSS REINSURANCE OF GENERAL
LIABILITY, shall be deleted in its entirety and replaced by
the following:
	 
	 	 	“For purposes of this Exhibit, it is agreed that the Company’s limit of liability under any
and all policies of Personal Accident Insurance (individual and group) covering any one
individual shall be considered as not exceeding $300,000. Subject to this Agreement and
subject to the limits set forth in this Section 2, it is agreed that the Company is
reinsured hereunder for the excess of the amounts set forth in this Section 2 of ultimate
net loss any one accident, or series of accidents arising out of one event involving more
than one person covered under such policies issued by the Company.”
	 
	4.	 	SECTION 4 — DEFINITION OF “EACH AND EVERY ACCIDENT OR
OCCURRENCE”, paragraph A. of EXHIBIT A, EXCESS OF LOSS
REINSURANCE OF GENERAL LIABILITY, shall be deleted in its
entirety.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have executed
this Endorsement as of the dates undermentioned.

At Boston,
Massachusetts this 23rd day of April, 1982

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY	 	 
	 	 	LIBERTY MUTUAL FIRE INSURANCE COMPANY	 	 
	 	 	LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ [ILLEGIBLE]	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT
 

	 	 

and at
Boston, Massachusetts
this            day of      , 1982

	 	 	 	 	 	 	 

	 	 	SECURITY INSURANCE COMPANY OF HARTFORD Through:	 	 
	 	 	MASSACHUSETTS REINSURANCE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ [ILLEGIBLE]	 	 
	 

	 	TITLE:
	 	Assistant Vice President	 	 
	 

	 	 	 	 

	 	 

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

EE/ms — 4/1/82

 

 

ENDORSEMENT NO. 3

to the

WORKERS’ COMPENSATION & GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.

(hereinafter called the “Company”)

by

REINSURANCE COMPANY OF AMERICA, INC.

CHICAGO, ILLINOIS

(hereinafter called the “Reinsurer”)

It is
hereby mutually understood and agreed effective Midnight December 31, 1981, the
following changes shall be made to this Contract:

	1.	 	ARTICLE 3 — REINSURANCE PREMIUM, Paragraphs (a) and (b) shall be deleted in their
entirety and replaced by the following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided
under this Contract shall be computed by the application of a rate of .0033% to
the Company’s net premium written on the business covered under Exhibits ‘A’ and
‘B’ subject to an annual minimum and deposit premium of $62,000 for the combined
Sixth Excess of Loss Layer provided under Exhibits ‘A’ and. ’B’.
	 
	 	(b)	 	The minimum and deposit premium as provided for in (a) above shall be
payable to Reinsurers in four equal quarterly installments at the beginning of each
calendar quarter. The Company shall undertake to furnish Reinsurers at the
conclusion of each year a report of the net premiums written during such year. If
the annual developed reinsurance premium for the Sixth Excess of Loss Reinsurance
under Exhibits ‘A’ and ‘B’ computed in accordance with the provisions of (a) above
is greater than the minimum and deposit premium, the additional premium shall be
promptly paid to the Reinsurers.”

	2.	 	ARTICLE 10 — OFFSET CLAUSE, shall be deleted in its entirety and replaced
by the following:
	 
	 	 	“ARTICLE 10 — OFFSET CLAUSE
	 
	 	 	Each party hereto shall have the right to offset any balance or balances, whether on account
of premiums or on account of losses, due from one party to any other party under this
Contract, against any balance or balances currently due and payable to the one party from the
other party under this Contract.”

 

 

-2-

	3.	 	SECTION 2 — LIMIT OF LIABILITY, the Third Paragraph, as contained in
EXHIBIT A, EXCESS OF LOSS REINSURANCE OF GENERAL
LIABILITY, shall be deleted in its entirety and replaced by
the following:
	 
	 	 	“For purposes of this Exhibit, it is agreed that the Company’s limit of liability under
any and all policies of Personal Accident Insurance (individual and group) covering any one
individual shall be considered as not exceeding $300,000. Subject to this Agreement and
subject to the limits set forth in this Section 2, it is agreed that the Company is
reinsured hereunder for the excess of the amounts set forth in this Section 2 of ultimate
net loss any one accident, or series of accidents arising out of one event involving more
than one person covered under such policies issued by the Company.”
	 
	4.	 	SECTION 4 — DEFINITION OF “EACH AND EVERY ACCIDENT OR
OCCURRENCE”, paragraph A. of EXHIBIT A, EXCESS OF LOSS
REINSURANCE OF GENERAL LIABILITY, shall be deleted in its
entirety.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have executed
this Endorsement as of the dates undermentioned.

At Boston, Massachusetts
this 23rd day of April, 1982

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY	 	 
	 	 	LIBERTY MUTUAL FIRE INSURANCE COMPANY	 	 
	 	 	LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ [ILLEGIBLE]	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT	 	 
	 

	 	 	 	 

	 	 

and at
Chicago, Illinois this 3rd day of June, 1982

	 	 	 	 	 	 	 

	 	 	REINSURANCE COMPANY OF AMERICA, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ [ILLEGIBLE]	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT	 	 
	 

	 	 	 	 

	 	 

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

EE/ms — 4/1/82

 

 

ENDORSEMENT NO. 3

to the

WORKERS’ COMPENSATION & GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.

(hereinafter called the “Company”)

by

PRUDENTIAL REINSURANCE COMPANY

 DOVER, DELAWARE

(hereinafter called the “Reinsurer”)

It is hereby mutually understood and agreed effective Midnight December 31, 1981, the
following changes shall be made to this Contract:

	1.	 	ARTICLE 3 — REINSURANCE PREMIUM, Paragraphs (a) and (b) shall be deleted in
their entirety and replaced by the following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided
under this Contract shall be computed by the application of a rate of .0033% to the
Company’s net premium written on the business covered under Exhibits ‘A’ and ‘B’
subject to an annual minimum and deposit premium of $62,000 for the combined Sixth
Excess of Loss Layer provided under Exhibits ‘A’ and ‘B’.
	 
	 	(b)	 	The minimum and deposit premium as provided for in (a) above shall be payable to Reinsurers in four
equal quarterly installments at the beginning of each calendar quarter. The
Company shall undertake to furnish Reinsurers at the conclusion of each year a
report of the net premiums written during such year. If the annual developed
reinsurance premium for the Sixth Excess of Loss Reinsurance under Exhibits ‘A’ and
‘B’ computed in accordance with the provisions of (a) above is greater than the
minimum and deposit premium, the additional premium shall be promptly paid to the
Reinsurers.”

	2.	 	ARTICLE 10 — OFFSET CLAUSE, shall be deleted in its entirety and replaced by
the following:
	 
	 	 	“ARTICLE 10 — OFFSET CLAUSE
	 
	 	 	Each party hereto shall have the right to offset any balance or balances, whether on
account of premiums or on account of losses, due from one party to any other party under this
Contract, against any balance or balances currently due and payable to the one party from the other
party under this Contract.”

 

 

 -2- 

	3.	 	SECTION 2 — LIMIT OF LIABILITY, the Third Paragraph, as contained in EXHIBIT A, EXCESS OF LOSS REINSURANCE OF GENERAL LIABILITY, shall be deleted in its entirety and replaced by
the following:

	 	 	“For purposes of this Exhibit, it is agreed that the Company’s limit of liability under any
and all policies of Personal Accident Insurance (individual and group) covering any one
individual shall be considered as not exceeding $300,000. Subject to this Agreement and
subject to the limits set forth in this Section 2, it is agreed that the Company is
reinsured hereunder for the excess of the amounts set forth in this Section 2 of ultimate
net loss any one accident, or series of accidents arising out of one event involving more
than one person covered under such policies issued by the Company.”
	 
	4.	 	SECTION 4 — DEFINITION OF “EACH AND EVERY
ACCIDENT OR OCCURRENCE”, paragraph A. of EXHIBIT A, EXCESS OF LOSS REINSURANCE OF GENERAL LIABILITY, shall be deleted in its
entirety.
	 
	5.	 	It is further mutually understood and agreed that this reinsurer’s participation as
stated in the attached Interests and
Liabilities Agreement attached to and forming part of this Contract is hereby amended to 16.67%.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have
executed this Endorsement as of the dates undermentioned.

At Boston, Massachusetts this 23rd day of April, 1982

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY	 	 
	 	 	LIBERTY MUTUAL FIRE INSURANCE COMPANY	 	 
	 	 	LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ [ILLEGIBLE]
 

	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT	 	 

and at Newark, New Jersey this 4th day of June, 1982

	 	 	 	 	 

	 	 	PRUDENTIAL REINSURANCE COMPANY
	 
	 	 	 	 
	 

	 	BY:
	 	/s/ [ILLEGIBLE]
	 

	 	 	 	 
	 

	 	TITLE:
	 	[ILLEGIBLE]

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

EE/ms — 4/1/82

 

 

ENDORSEMENT NO. 3

to the

WORKERS’ COMPENSATION & GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.

(hereinafter called the “Company”)

by

INTERCONTINENTAL RE, INC. for and on

behalf of: PURITAN INSURANCE COMPANY

(hereinafter called the “Reinsurer”)

It is hereby mutually understood and agreed effective Midnight December 31, 1981, the
following changes shall be made to this Contract:

	1.	 	ARTICLE 3 — REINSURANCE PREMIUM, Paragraphs (a) and (b) shall
be deleted in their entirety and replaced by the following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided
under this Contract shall be computed by the application of a rate of .0033% to the
Company’s net premium written on the business covered under Exhibits ‘A’ and ‘B’
subject to an annual minimum and deposit premium of $62,000 for the combined Sixth
Excess of Loss Layer provided under Exhibits ‘A’ and ‘B’.
	 
	 	(b)	 	The minimum and deposit premium as provided for in (a) above shall be
payable to Reinsurers in four equal quarterly installments at the beginning of each
calendar quarter. The Company shall undertake to furnish Reinsurers at the
conclusion of each year a report of the net premiums written during such year. If
the annual developed reinsurance premium for the Sixth Excess of Loss Reinsurance
under Exhibits ‘A’ and ‘B’ computed in accordance with the provisions of (a) above is
greater than the minimum and deposit premium, the additional premium shall be
promptly paid to the Reinsurers.”

	2.	 	ARTICLE 10 — OFFSET CLAUSE, shall be deleted in its entirety
and replaced by the following:
	 
	 	 	“ARTICLE 10 — OFFSET CLAUSE
	 
	 	 	Each party hereto shall have the right to offset any balance
or balances, whether on account of premiums or on account of
losses, due from one party to any other party under this Contract, against any balance or balances currently due and
payable to the one party from the other party under this Contract.”

 

 

 -2- 

	3.	 	SECTION 2 — LIMIT OF LIABILITY, the Third Paragraph, as contained in EXHIBIT A,
EXCESS OF LOSS REINSURANCE OF GENERAL LIABILITY, shall be deleted in its entirety and
replaced by the following:
	 
	 	 	“For purposes of this Exhibit, it is agreed that the Company’s limit of liability under any
and all policies of Personal Accident Insurance (individual and group) covering any one
individual shall be considered as not exceeding $300,000. Subject to this Agreement and
subject to the limits set forth in this Section 2, it is agreed that the Company is
reinsured hereunder for the excess of the amounts set forth in this Section 2 of ultimate
net loss any one accident, or series of accidents arising out of one event involving more
than one person covered under such policies issued by the Company.”
	 
	4.	 	SECTION 4 — DEFINITION OF “EACH AND EVERY ACCIDENT OR OCCURRENCE”,
paragraph A. of EXHIBIT A, EXCESS OF LOSS REINSURANCE OF GENERAL LIABILITY,
shall be deleted in its entirety.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have executed
this Endorsement as of the dates undermentioned.

At Boston, Massachusetts this 23rd day of April, 1982

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ [ILLEGIBLE]
 

	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT	 	 

and at Los Angeles, California this 14th day of June, 1982

	 	 	 	 	 	 	 

	 	 	INTERCONTINENTAL RE, INC. for and on
behalf of: PURITAN INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ Frederick C. Easty
 

Frederick C. Easty
	 	 
	 

	 	TITLE:
	 	Senior Vice President	 	 

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

EE/ms — 4/1/82

 

 

ENDORSEMENT NO. 3

to the

WORKERS’ COMPENSATION & GENERAL LIABILITY 

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.

(hereinafter called the “Company”)

by

PHILADELPHIA REINSURANCE CORPORATION

PHILADELPHIA, PENNSYLVANIA

(hereinafter called the “Reinsurer”)

It is hereby mutually understood and agreed effective Midnight December 31, 1981, the
following changes shall be made to this Contract:

	1.	 	ARTICLE 3 — REINSURANCE PREMIUM, Paragraphs (a) and (b) shall
be deleted in their entirety and replaced by the following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided
under this Contract shall be computed by the application of a rate of .0033% to
the Company’s net premium written on the business covered under Exhibits ‘A’ and
‘B’ subject to an annual minimum and deposit premium of $62,000 for the combined
Sixth Excess of Loss Layer provided under Exhibits ‘A’ and ‘B’.
	 
	 	(b)	 	The minimum and deposit premium as provided for in (a) above shall be
payable to Reinsurers in four equal quarterly installments at the beginning of each
calendar quarter. The Company shall undertake to furnish Reinsurers at the
conclusion of each year a report of the net premiums written during such year. If
the annual developed reinsurance premium for the Sixth Excess of Loss Reinsurance
under Exhibits ‘A’ and ‘B’ computed in accordance with the provisions of (a) above
is greater than the minimum and deposit premium, the additional premium shall be
promptly paid to the Reinsurers.”

	2.	 	ARTICLE 10 — OFFSET CLAUSE, shall be deleted in its entirety
and replaced by the following:
	 
	 	 	“ARTICLE 10 — OFFSET CLAUSE
	 
	 	 	Each party hereto shall have the right to offset any balance or balances, whether on
account of premiums or on account of losses, due from one party to any other party under
this Contract, against any balance or balances currently due and payable to the one party
from the other party under this Contract.”

 

 

 -2- 

	3.	 	SECTION 2 — LIMIT OF LIABILITY, the Third Paragraph, as contained in EXHIBIT A, EXCESS OF LOSS REINSURANCE OF GENERAL LIABILITY, shall be deleted in its entirety and replaced
by the following:
	 
	 	 	“For purposes of this Exhibit, it is agreed that the Company’s limit of liability under any
and all policies of Personal Accident Insurance (individual and group) covering any one
individual shall be considered as not exceeding $300,000. Subject to this Agreement and
subject to the limits set forth in this Section 2, it is agreed that the Company is
reinsured hereunder for the excess of the amounts set forth in this Section 2 of ultimate
net loss any one accident, or series of accidents arising out of one event involving more
than one person covered under such policies issued by the Company.”
	 
	4.	 	SECTION 4 — DEFINITION OF “EACH AND EVERY ACCIDENT OR
OCCURRENCE”, paragraph A. of EXHIBIT A, EXCESS OF LOSS REINSURANCE OF GENERAL LIABILITY, shall be deleted in its
entirety.
	 
	5.	 	It is further mutually understood and agreed that this reinsurer’s participation as stated in the attached Interests and
Liabilities Agreement attached to and forming part of this Contract is hereby amended to 4.00%.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have executed
this Endorsement as of the dates undermentioned.

At Boston, Massachusetts this 23rd day of April, 1982

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:

TITLE:
	 	/s/ [ILLEGIBLE]
 

VICE PRESIDENT
	 	 

and at Philadelphia, Pennsylvania this 1st  day of June, 1982

	 	 	 	 	 	 	 

	 	 	PHILADELPHIA REINSURANCE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ DENNIS MoCUE
 

DENNIS MoCUE
	 	 
	 

	 	TITLE:
	 	ASST. VICE PRESIDENT	 	 

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

EE/ms — 4/1/82

 

 

ENDORSEMENT NO. 3

to the

WORKERS’ COMPENSATION & GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.

(hereinafter called the “Company”)

by

NATIONWIDE MUTUAL INSURANCE COMPANY

COLUMBUS, OHIO

(hereinafter called the “Reinsurer”)

It is hereby mutually understood and agreed effective Midnight December 31, 1981, the
following changes shall be made to this Contract:

	1.	 	ARTICLE 3 — REINSURANCE PREMIUM, Paragraphs (a) and (b) shall
be deleted in their entirety and replaced by the following:

	 	“(a)	 	 The Reinsurers’ premium for the reinsurance provided
    under this Contract shall be computed by the application of a rate of .0033% to the
Company’s net premium written on the business covered under Exhibits ‘A’ and ‘B’
subject to an annual minimum and deposit premium of $62,000 for the combined Sixth
Excess of Loss Layer provided under Exhibits ‘A’ and ‘B’.
	 
	 	(b)	 	The minimum and deposit premium as provided for in (a) above shall be
payable to Reinsurers in four equal quarterly installments at the beginning of each
calendar quarter. The Company shall undertake to furnish Reinsurers at the conclusion
of each year a report of the net premiums written during such year. If the annual
developed reinsurance premium for the Sixth Excess of Loss Reinsurance under Exhibits
‘A’ and ‘B’ computed in accordance with the provisions of (a) above is greater than
the minimum and deposit premium, the additional premium shall be promptly paid to the
Reinsurers.”

	2.	 	ARTICLE 10 — OFFSET CLAUSE, shall be deleted in its entirety
and replaced by the following:

	 	 	 	“ARTICLE 10 — OFFSET CLAUSE
	 
	 	 	 	Each party hereto shall have the right to offset any balance or balances, whether on account of
premiums or on account of losses, due from one party to any other party under this Contract,
against any balance or balances currently due and payable to the one party from the other party
under this Contract.”

 

 

-2- 

	 	3.	 	SECTION 2 — LIMIT OF LIABILITY, the Third Paragraph, as contained in
EXHIBIT A, EXCESS OF LOSS REINSURANCE OF GENERAL LIABILITY, shall be deleted in its entirety and replaced by the following:
	 
	 	 	 	“For purposes of this Exhibit, it is agreed that the Company’s limit of liability under
any and all policies of Personal Accident Insurance (individual and group) covering any one
individual shall be considered as not exceeding $300,000. Subject to this Agreement and
subject to the limits set forth in this Section 2, it is agreed that the Company is
reinsured hereunder for the excess of the amounts set forth in this Section 2 of ultimate
net loss any one accident, or series of accidents arising out of one event involving more
than one person covered under such policies issued by the Company.”
	 
	 	4.	 	SECTION 4 — DEFINITION OF “EACH AND EVERY
ACCIDENT OR OCCURRENCE”, paragraph A. of EXHIBIT A, EXCESS OF LOSS
REINSURANCE OF GENERAL LIABILITY, shall be deleted in its
entirety.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have executed
this Endorsement as of the dates undermentioned.

     At Boston, Massachusetts this 23rd day of April, 1982

	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY
	 	 	LIBERTY MUTUAL FIRE INSURANCE COMPANY
	 	 	LIBERTY MUTUAL (BERMUDA) LTD.
	 
	 	 	 	 
	 

	 	BY:
	 	/s/ [ILLEGIBLE]
	 

	 	 	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT

     and at Columbus, Ohio this 28th day of May, 1982

	 	 	 	 	 

	 	 	NATIONWIDE MUTUAL INSURANCE COMPANY
	 
	 	 	 	 
	 

	 	BY:
	 	/s/ [ILLEGIBLE]
	 

	 	 	 	 
	 

	 	TITLE:
	 	Reinsurance Manager/Reinsurance Officer

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

EE/ms  —  4/1/82

 

 

ENDORSEMENT NO. 3

to the

WORKERS’ COMPENSATION & GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.

(hereinafter called the “Company”)

by

METROPOLITAN REINSURANCE COMPANY

NEWARK, DELAWARE

(hereinafter called the “Reinsurer”)

It is hereby mutually understood  and agreed effective Midnight December 31, 1981, the
following changes shall be made to this Contract:

	1.	 	ARTICLE 3 — REINSURANCE PREMIUM, Paragraphs (a) and (b) shall
be deleted in their entirety and replaced by the following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided
under this Contract shall be computed by the application of a rate of .0033% to the
Company’s net premium written on the business covered under Exhibits ‘A’ and ‘B’
subject to an annual minimum and deposit premium of $62,000 for the combined Sixth
Excess of Loss Layer provided under Exhibits ‘A’ and ‘B’.
	 
	 	(b)	 	The minimum and deposit premium as provided for in (a) above shall be
payable to Reinsurers in four equal quarterly installments at the beginning of each
calendar quarter. The Company shall undertake to furnish Reinsurers at the
conclusion of each year a report of the net premiums written during such year. If
the annual developed reinsurance premium for the Sixth Excess of Loss Reinsurance
under Exhibits ‘A’ and ‘B’ computed in accordance with the provisions of (a) above is
greater than the minimum and deposit premium, the additional premium shall be
promptly paid to the Reinsurers.”

	2.	 	ARTICLE 10 — OFFSET CLAUSE, shall be deleted in its entirety
and replaced by the following:
	 
	 	 	“ARTICLE 10 — OFFSET CLAUSE
	 
	 	 	Each party hereto shall have the right to offset any balance or balances, whether on account
of premiums or on account of losses, due from one party to any other party under this
Contract, against any balance or balances currently due and payable to the one party from
the other party under this Contract.”

 

 

-2-

	3.	 	SECTION 2 — LIMIT OF LIABILITY, the Third Paragraph, as contained in EXHIBIT
A, EXCESS OF LOSS REINSURANCE OF GENERAL LIABILITY, shall be deleted in its entirety and replaced by
the following:
	 
	 	 	“For purposes of this Exhibit, it is agreed that the Company’s limit of liability under any
and all policies of Personal Accident Insurance (individual and group) covering any one
individual shall be considered as not exceeding $300,000. Subject to this Agreement and
subject to the limits set forth in this Section 2, it is agreed that the Company is
reinsured hereunder for the excess of the amounts set forth in this Section 2 of ultimate
net loss any one accident, or series of accidents arising out of one event involving more
than one person covered under such policies issued by the Company.”
	 
	4.	 	SECTION 4 — DEFINITION OF “EACH AND EVERY ACCIDENT OR
OCCURRENCE”, paragraph A. of EXHIBIT A, EXCESS OF LOSS REINSURANCE OF GENERAL LIABILITY, shall be deleted in its
entirety.
	 
	5.	 	It is further mutually understood and agreed that this reinsurer’s participation as stated in
the attached Interests and
Liabilities Agreement attached to and forming part of this Contract is hereby amended to
4.50%.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have executed
this Endorsement as of the dates undermentioned.

At Boston, Massachusetts this 23rd day of April, 1982

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY	 	 
	 	 	LIBERTY MUTUAL FIRE INSURANCE COMPANY	 	 
	 	 	LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ [ILLEGIBLE]
 

	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT	 	 

and at New York, New York this 16th day of July, 1982

	 	 	 	 	 	 	 

	 	 	METROPOLITAN REINSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:

TITLE:
	 	/s/ [ILLEGIBLE]
 

[ILLEGIBLE]
	 	 

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

 

 

ENDORSEMENT NO. 3

to the

WORKERS’ COMPENSATION & GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.

(hereinafter called the “Company”)

by

HOME INSURANCE COMPANY

NEW YORK, NEW YORK

(hereinafter called the “Reinsurer”)

It is hereby mutually understood and agreed effective Midnight December 31, 1981, the
following changes shall be made to this Contract:

	1.	 	ARTICLE 3 — REINSURANCE PREMIUM, Paragraphs (a) and (b) shall
be deleted in their entirety and replaced by the following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided
under this Contract shall be computed by the application of a rate of .0033%
to the Company’s net premium written on the business covered under Exhibits ‘A’ and
‘B’ subject to an annual minimum and deposit premium of $62,000 for the combined
Sixth Excess of Loss Layer provided under Exhibits ‘A’ and ‘B’.
	 
	 	(b)	 	The minimum and deposit premium as provided for in (a) above shall be
payable to Reinsurers in four equal quarterly installments at the beginning of each
calendar quarter. The Company shall undertake to furnish Reinsurers at the
conclusion of each year a report of the net premiums written during such year. If
the annual developed reinsurance premium for the Sixth Excess of Loss Reinsurance
under Exhibits ‘A’ and ‘B’ computed in accordance with the provisions of (a) above is
greater than the minimum and deposit premium, the additional premium shall be
promptly paid to the Reinsurers.”

	2.	 	ARTICLE 10 — OFFSET CLAUSE, shall be deleted in its entirety
and replaced by the following:
	 
	 	 	“ARTICLE 10 — OFFSET CLAUSE
	 
	 	 	Each party hereto shall have the right to offset any balance or balances, whether on
account of premiums or on account of losses, due from one party to any other party under
this Contract, against any balance or balances currently due and payable to the one party
from the other party under this Contract.”

 

-2-

	3.	 	SECTION 2 — LIMIT OF LIABILITY, the Third Paragraph, as contained in EXHIBIT A, EXCESS OF LOSS REINSURANCE OF GENERAL
LIABILITY, shall be deleted in its entirety and replaced by
the following:
	 
	 	 	“For purposes of this Exhibit, it is agreed that the Company’s limit of liability under
any and all policies of Personal Accident Insurance (individual and group) covering any one
individual shall be considered as not exceeding $300,000. Subject to this Agreement and
subject to the limits set forth in this Section 2, it is agreed that the Company is
reinsured hereunder for the excess of the amounts set forth in this Section 2 of ultimate
net loss any one accident, or series of accidents arising out of one event involving more
than one person covered under such policies issued by the Company.”

	4.	 	SECTION 4 — DEFINITION OF “EACH AND EVERY ACCIDENT OR
OCCURRENCE”, paragraph A. of EXHIBIT A, EXCESS OF LOSS
REINSURANCE OF GENERAL LIABILITY, shall be deleted in its
entirety.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have executed
this Endorsement as of the dates undermentioned.

At Boston, Massachusetts this 23rd day of April, 1982

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY	 	 
	 	 	LIBERTY MUTUAL FIRE INSURANCE COMPANY	 	 
	 	 	LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ [ILLEGIBLE]
 

	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT	 	 

and at New York, New York this 21st day of July, 1982

	 	 	 	 	 	 	 

	 	 	HOME INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ CHARLES F. McCARTHY
 

	 	 
	 

	 	TITLE:
	 	Secretary	 	 

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

EE/ms — 4/1/82

 

ENDORSEMENT NO. 3

to the

WORKERS’ COMPENSATION & GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.

(hereinafter called the “Company”)

by

GENERAL ACCIDENT INSURANCE COMPANY OF AMERICA

through: BOSTON REINSURANCE CORPORATION

(hereinafter called the “Reinsurer”)

It is hereby mutually understood and agreed effective Midnight December 31, 1981, the
following changes shall be made to this Contract:

	1.	 	ARTICLE 3 — REINSURANCE PREMIUM, Paragraphs (a) and (b) shall
be deleted in their entirety and replaced by the following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided
under this Contract shall be computed by the application of a rate of .0033% to the
Company’s net premium written on the business covered under Exhibits ‘A’ and ‘B’
subject to an annual minimum and deposit premium of $62,000 for the combined Sixth
Excess of Loss Layer provided under Exhibits ‘A’ and ‘B’.
	 
	 	(b)	 	The minimum and deposit premium as provided for in (a) above shall be
payable to Reinsurers in four equal quarterly installments at the beginning of each
calendar quarter. The Company shall undertake to furnish Reinsurers at the
conclusion of each year a report of the net premiums written during such year. If
the annual developed reinsurance premium for the Sixth Excess of Loss Reinsurance
under Exhibits ‘A’ and ‘B’ computed in accordance with the provisions of (a) above is
greater than the minimum and deposit premium, the additional premium shall be
promptly paid to the Reinsurers.”

	2.	 	ARTICLE 10 — OFFSET CLAUSE, shall be deleted in its entirety
and replaced by the following:
	 
	 	 	“ARTICLE 10 — OFFSET CLAUSE
	 
	 	 	Each party hereto shall have the right to offset any balance or balances, whether on account
of premiums or on account of losses, due from one party to any other party under this
Contract, against any balance or balances currently due and payable to the one party from
the other party under this Contract.”

 

-2-

	3.	 	SECTION 2 — LIMIT OF LIABILITY, the Third Paragraph, as contained in
EXHIBIT A, EXCESS OF LOSS REINSURANCE OF GENERAL LIABILITY, shall be deleted in its
entirety and replaced by the following:
	 
	 	 	“For purposes of this Exhibit, it is agreed that the Company’s limit of liability under any
and all policies of Personal Accident Insurance (individual and group) covering any one
individual shall be considered as not exceeding $300,000. Subject to this Agreement and
subject to the limits set forth in this Section 2, it is agreed that the Company is
reinsured hereunder for the excess of the amounts set forth in this Section 2 of ultimate
net loss any one accident, or series of accidents arising out of one event involving more
than one person covered under such policies issued by the Company.”

	4.	 	SECTION 4 — DEFINITION OF “EACH AND EVERY ACCIDENT OR OCCURRENCE”,
paragraph A. of EXHIBIT A, EXCESS OF LOSS REINSURANCE OF GENERAL LIABILITY,
shall be deleted in its entirety.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have executed
this Endorsement as of the dates undermentioned.

At Boston,
Massachusetts this 23rd day of April, 1982

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY	 	 
	 	 	LIBERTY MUTUAL FIRE INSURANCE COMPANY	 	 
	 	 	LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ [ILLEGIBLE]
 

	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT	 	 

and at
Boston, Massachusetts this 2nd day of June, 1982

	 	 	 	 	 	 	 

	 	 	GENERAL ACCIDENT INSURANCE COMPANY OF	 	 
	 	 	AMERICA Through: BOSTON REINSURANCE	 	 
	 	 	CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ [ILLEGIBLE]
 

	 	 
	 

	 	TITLE:
	 	Vice President	 	 

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

EE/ms — 4/1/82

 

 

ENDORSEMENT NO. 3

to the

WORKERS’ COMPENSATION & GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.

(hereinafter called the “Company”)

by

MEMBERS OF EXCESS AND CASUALTY REINSURANCE ASSOCIATION

NEW YORK, NEW YORK

(hereinafter called the “Reinsurer”)

It is hereby mutually understood and agreed effective Midnight December 31, 1981, the
following changes shall be made to this Contract:

	1.	 	ARTICLE 3 — REINSURANCE PREMIUM, Paragraphs (a) and (b) shall
be deleted in their entirety and replaced by the following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided
under this Contract shall be computed by the application of a rate of .0033% to the
Company’s net premium written on the business covered under Exhibits ‘A’ and ‘B’
subject to an annual minimum and deposit premium of $62,000 for the combined Sixth
Excess of Loss Layer provided under Exhibits ‘A’ and ‘B’.
	 
	 	(b)	 	The minimum and deposit premium as provided for in (a) above shall be
payable to Reinsurers in four equal quarterly installments at the beginning of each
calendar quarter. The Company shall undertake to furnish Reinsurers at the
conclusion of each year a report of the net premiums written during such year. If
the annual developed reinsurance premium for the Sixth Excess of Loss Reinsurance
under Exhibits ‘A’ and ‘B’ computed in accordance with the provisions of (a) above is
greater than the minimum and deposit premium, the additional premium shall be
promptly paid to the Reinsurers.”

	2.	 	ARTICLE 10 — OFFSET CLAUSE, shall be deleted in its entirety
and replaced by the following:
	 
	 	 	“ARTICLE 10 — OFFSET CLAUSE
	 
	 	 	Each party hereto shall have the right to offset any balance or balances, whether on account
of premiums or on account of losses, due from one party to any other party under this
Contract, against any balance or balances currently due and payable to the one party from
the other party under this Contract.”

 

 

-2-

	3.	 	SECTION 2 — LIMIT OF LIABILITY, the Third Paragraph, as contained in
EXHIBIT A, EXCESS OF LOSS REINSURANCE OF GENERAL
LIABILITY, shall be deleted in its entirety and replaced by
the following:
	 
	 	 	“For purposes of this Exhibit, it is agreed that the Company’s limit of liability under any
and all policies of Personal Accident Insurance (individual and group) covering any one
individual shall be considered as not exceeding $300,000. Subject to this Agreement and
subject to the limits set forth in this Section 2, it is agreed that the Company is
reinsured hereunder for the excess of the amounts set forth in this Section 2 of ultimate
net loss any one accident, or series of accidents arising out of one event involving more
than one person covered under such policies issued by the Company.”
	 
	4.	 	SECTION 4 — DEFINITION OF “EACH AND EVERY ACCIDENT OR
OCCURRENCE”, paragraph A. of EXHIBIT A, EXCESS OF LOSS
REINSURANCE OF GENERAL LIABILITY, shall be deleted in its
entirety.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have
executed this Endorsement as of the dates undermentioned.

At Boston, Massachusetts this 23rd day of April, 1982

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY	 	 
	 	 	LIBERTY MUTUAL FIRE INSURANCE COMPANY	 	 
	 	 	LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ [ILLEGIBLE]
 

	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT
 

	 	 

and at New York, New York this 15th day of July, 1982

	 	 	 	 	 	 	 

	 	 	EXCESS & TREATY MANAGEMENT CORPORATION	 	 
	 	 	UNDERWRITING MANAGER	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:

TITLE:
	 	/s/ [ILLEGIBLE]
 

VICE PRESIDENT
 

	 	  

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

EE/ms —  4/1/82

 

 

AMENDED MEMBERS’ LIST

Attached to and forming part

of Agreement No. C-708-A

     As respects loss occurrences taking place at or after 12:01 A.M. January 1, 1982, this
Agreement is subject to the provisions of Endorsement A attached hereto, and the list of
Members constituting the “Reinsurer” and the respective proportions of the liability assumed
severally and not jointly by them under this Agreement shall be as follows:

MEMBERS of EXCESS AND CASUALTY REINSURANCE ASSOCIATION

	 	 	 	 	 
	 	 	PROPORTIONS	 
	ABEILLE-PAIX GENERAL INSURANCE COMPANY*
	 	 	3/957	 
	AETNA INSURANCE COMPANY
	 	 	29/957	 
	ALABAMA FARM BUREAU MUTUAL CASUALTY INSURANCE COMPANY, INC.
	 	 	3/957	 
	AMERICAN AGRICULTURAL INSURANCE COMPANY
	 	 	20/957	 
	ATLAS ASSURANCE COMPANY OF AMERICA
	 	 	9/957	 
	CONTINENTAL CASUALTY COMPANY
	 	 	24/957	 
	THE COPENHAGEN REINSURANCE COMPANY OF AMERICA
	 	 	3/957	 
	DORINCO REINSURANCE COMPANY**
	 	 	6/957	 
	EAGLE STAR INSURANCE COMPANY OF AMERICA
	 	 	8/957	 
	EMPLOYERS INSURANCE OF WAUSAU A MUTUAL COMPANY
	 	 	15/957	 
	EXCESS AND TREATY REINSURANCE CORPORATION
	 	 	96/957	 
	FARMERS HOME MUTUAL INSURANCE COMPANY
	 	 	3/957	 
	FARMERS MUTUAL HAIL INSURANCE COMPANY OF IOWA
	 	 	3/957	 
	FOLKSAMERICA REINSURANCE COMPANY
	 	 	7/957	 
	GENERAL ACCIDENT FIRE AND LIFE ASSURANCE CORP., LTD.*
	 	 	23/957	 
	GREAT AMERICAN INSURANCE COMPANY
	 	 	16/957	 
	GUARANTEE INSURANCE COMPANY
	 	 	5/957	 
	THE HANOVER INSURANCE COMPANY
	 	 	11/957	 
	HANSECO INSURANCE COMPANY
	 	 	48/957	 
	HASTINGS MUTUAL INSURANCE COMPANY**
	 	 	4/957	 
	HIGHLANDS INSURANCE COMPANY
	 	 	20/957	 
	THE HOME INSURANCE COMPANY
	 	 	60/957	 
	INLAND INSURANCE COMPANY**
	 	 	5/957	 
	INSURANCE CORPORATION OF HANNOVER**
	 	 	53/957	 
	LIBERTY MUTUAL INSURANCE COMPANY
	 	 	57/957	 
	LIBERTY NATIONAL FIRE INSURANCE COMPANY
	 	 	4/957	 
	MERCHANTS AND BUSINESS MEN’S MUTUAL INSURANCE COMPANY
	 	 	4/957	 
	MERRIMACK MUTUAL FIRE INSURANCE COMPANY
	 	 	10/957	 
	METROPOLITAN REINSURANCE COMPANY
	 	 	96/957	 
	THE MUTUAL FIRE, MARINE AND INLAND INSURANCE COMPANY
	 	 	11/957	 
	NATIONAL REINSURANCE CORPORATION
	 	 	19/957	 
	NEW ENGLAND REINSURANCE CORPORATION
	 	 	20/957	 
	NIPPON FIRE & MARINE INSURANCE COMPANY, LTD.*
	 	 	20/957	 
	NORTHEASTERN INSURANCE COMPANY OF HARTFORD
	 	 	25/957	 
	PHILADELPHIA MANUFACTURERS MUTUAL INSURANCE COMPANY
	 	 	4/957	 
	PROVIDENCE WASHINGTON INSURANCE COMPANY
	 	 	4/957	 
	PROVIDENT GENERAL INSURANCE COMPANY
	 	 	3/957	 
	REPUBLIC INSURANCE COMPANY
	 	 	22/957	 
	ROYAL INSURANCE COMPANY OF AMERICA
	 	 	22/957	 
	ST. PAUL FIRE & MARINE INSURANCE COMPANY
	 	 	57/957	 
	SECURITY INSURANCE COMPANY OF HARTFORD
	 	 	48/957	 
	SHELBY MUTUAL INSURANCE COMPANY
	 	 	4/957	 
	TAISHO MARINE AND FIRE INSURANCE COMPANY, LTD.*
	 	 	5/957	 
	TOKIO MARINE AND FIRE INSURANCE COMPANY, LTD.*
	 	 	21/957	 
	UNITED FIRE & CASUALTY COMPANY
	 	 	3/957	 
	WINTERTHUR SWISS INSURANCE COMPANY*
	 	 	9/957	 
	ZURICH INSURANCE COMPANY*
	 	 	15/957	 

 

			
	*	 	U.S. Branch
	 
	**	 	Not licensed or accredited in New York

	 	 	 	 	 	 	 

	 	 	
EXCESS AND TREATY MANAGEMENT CORPORATION

Underwriting Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Cecilia B. Hirstreet
 

	 	 
	2-82

	 	 	 	Cecilia B. Hirstreet, Asst. Underwriter	 	 

 Excess And Treaty Management Corporation — Underwriting Manager 

 

 

ENDORSEMENT A

Non-Admitted Reinsurers Clause — Each of the Members of Excess and Casualty Reinsurance
Association (“ECRA”) designated on the Members’ List attached hereto as not being licensed or
accredited by the Insurance Department of the State of New York, will fund outstanding losses under
this Agreement, including an allowance for IBNR as recommended by Excess and Treaty Management
Corporation, the Underwriting Manager of ECRA, and unearned premium reserves, in an amount equal to
such Member’s proportion of liability under this Agreement. Such security shall be held for the
benefit of the Reinsured and may be in the form of cash advances, escrow or trust accounts, clean
irrevocable letters of credit, or a combination thereof, acceptable to said Insurance Department.

2-82

 Excess And Treaty Management Corporation — Underwriting Manager 

 

 

Contract No. 01724-78

ENDORSEMENT NO. 3

to the

WORKERS’ COMPENSATION & GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.

(hereinafter called the “Company”)

by

EMPLOYERS INSURANCE OF WAUSAU A MUTUAL COMPANY

WAUSAU, WISCONSIN

(hereinafter called the “Reinsurer”)

It is hereby mutually understood and agreed effective Midnight December 31, 1981, the
following changes shall be made to this Contract:

	1.	 	ARTICLE 3 — REINSURANCE PREMIUM, Paragraphs (a) and (b) shall be deleted in their
entirety and replaced by the following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided
under this Contract shall be computed by the application of a rate of .0033% to
the Company’s net premium written on the business covered under Exhibits ‘A’ and
‘B’ subject to an annual minimum and deposit premium of $62,000 for the combined
Sixth Excess of Loss Layer provided under Exhibits ‘A’
and ‘B’.
	 
	 	(b)	 	The minimum and deposit premium as provided for in (a) above shall be
payable to Reinsurers in four equal quarterly installments at the beginning of each
calendar quarter. The Company shall undertake to furnish Reinsurers at the
conclusion of each year a report of the net premiums written during such year. If
the annual developed reinsurance premium for the Sixth Excess of Loss Reinsurance
under Exhibits ‘A’ and ‘B’ computed in accordance with the provisions of (a) above
is greater than the minimum and deposit premium, the additional premium shall be
promptly paid to the Reinsurers.”

	2.	 	ARTICLE 10 — OFFSET CLAUSE, shall be deleted in its entirety and replaced by the
following:
	 
	 	 	“ARTICLE 10 — OFFSET CLAUSE
	 
	 	 	Each party hereto shall have the right to offset any balance or balances, whether on
account of premiums or on account of losses, due from one party to any other party under
this Contract, against any balance or balances currently due and payable to the one party
from the other party under this Contract.”

 

 

-2- 

	3.	 	SECTION 2 — LIMIT OF LIABILITY, the Third Paragraph, as contained in
EXHIBIT A, EXCESS OF LOSS REINSURANCE OF GENERAL LIABILITY, shall be
deleted in its entirety and replaced by the following:
	 
	 	 	“For purposes of this Exhibit, it is agreed that the Company’s limit of liability under any and all
policies of Personal Accident Insurance (individual and group) covering any one individual shall be
considered as not exceeding $300,000. Subject to this Agreement and subject to the limits set
forth in this Section 2, it is agreed that the Company is reinsured hereunder for the
excess of the amounts set forth in this Section 2 of ultimate net loss any one accident, or series
of accidents arising out of one event involving more than one person covered under such policies
issued by the Company.”
	 
	4.	 	SECTION 4 — DEFINITION OF “EACH AND EVERY ACCIDENT OR OCCURRENCE”,
paragraph A. of EXHIBIT A, EXCESS OF LOSS REINSURANCE OF GENERAL LIABILITY,
shall be deleted in its entirety.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have executed
this Endorsement as of the dates undermentioned.

At Boston, Massachusetts this 23rd day of April, 1982

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY	 	 
	 	 	LIBERTY MUTUAL FIRE INSURANCE COMPANY	 	 
	 	 	LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ [ILLEGIBLE]
 

	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT	 	 

and at
Wausau, Wisconsin this 11th day of June, 1982

	 	 	 	 	 	 	 

	 	 	EMPLOYERS INSURANCE OF WAUSAU A MUTUAL COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:

TITLE:
	 	/s/ Warren L. Eabel
 

Warren L. Eabel, Vice President
	 	 

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

EE/ms — 4/1/82

 

 

RE 5986H

ENDORSEMENT NO. 3

to the

WORKERS’ COMPENSATION & GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.

(hereinafter called the “Company”)

by

CERTAIN INSURANCE COMPANIES

(AS PER SCHEDULE ATTACHED)

(hereinafter called the “Reinsurer”)

It is hereby mutually understood and agreed effective Midnight December 31, 1981, the
following changes shall be made to this Contract:

	1.	 	ARTICLE 3 — REINSURANCE PREMIUM, Paragraphs (a) and (b) shall be
deleted in their entirety and replaced by the following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided
under this Contract shall be computed by the application of a rate of .0033% to the Company’s
net premium written on the business covered under Exhibits ‘A’ and ‘B’ subject to an annual minimum
and deposit premium of $62,000 for the combined Sixth Excess of Loss Layer provided under Exhibits
‘A’ and ‘B’.
	 
	 	(b)	 	The minimum and deposit premium as provided for in (a) above shall be
payable to Reinsurers in four equal quarterly installments at the beginning of each
calendar quarter. The Company shall undertake to furnish Reinsurers at the
conclusion of each year a report of the net premiums written during such year. If
the annual developed reinsurance premium for the Sixth Excess of Loss Reinsurance
under Exhibits ‘A’ and ‘B’ computed in accordance with the provisions of (a) above is
greater than the minimum and deposit premium, the additional premium shall be
promptly paid to the Reinsurers.”

	2.	 	ARTICLE 10 — OFFSET CLAUSE, shall be deleted in its entirety and replaced by the
following:
	 
	 	 	“ARTICLE 10 — OFFSET CLAUSE
	 
	 	 	Each party hereto shall have the right to offset any balance or balances, whether on account of
premiums or on account of losses, due from one party to any other party under this Contract,
against any balance or balances currently due and payable to the one party from the other party
under this Contract.”

 

 

-2- 

	3.	 	SECTION 2 — LIMIT OF LIABILITY, the Third
Paragraph, as contained in EXHIBIT A,
EXCESS OF LOSS REINSURANCE OF GENERAL LIABILITY, shall be deleted in its entirety and replaced by the following:
	 
	 	 	“For purposes of this Exhibit, it is agreed that the Company’s limit of liability under any
and all policies of Personal Accident Insurance (individual and group) covering any one
individual shall be considered as not exceeding $300,000. Subject to this Agreement and
subject to the limits set forth in this Section 2, it is agreed that the Company is
reinsured hereunder for the excess of the amounts set forth in this Section 2 of ultimate
net loss any one accident, or series of accidents arising out of one event involving more
than one person covered under such policies issued by the Company.”
	 
	4.	 	SECTION 4 — DEFINITION OF “EACH AND EVERY ACCIDENT OR OCCURRENCE”,
paragraph A. of EXHIBIT A, EXCESS OF LOSS REINSURANCE OF GENERAL
LIABILITY, shall be deleted in its entirety.
	 
	5.	 	It is further mutually understood and agreed that this
reinsurer’s participation as stated
in the attached Interests and Liabilities Agreement attached to and forming part of this
Contract is hereby amended to 6.32%

All other terms and conditions remain unchanged.

IN WITNESS
WHEREOF, the parties hereto by their respective duly authorized officers have executed this Endorsement as of the dates undermentioned.

At Boston,
Massachusetts this 23rd day of April, 1982

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY	 	 
	 	 	LIBERTY MUTUAL FIRE INSURANCE COMPANY	 	 
	 	 	LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ [ILLEGIBLE]
 

	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT	 	 

and at London, England this 2nd day of November, 1982

	 	 	 	 	 	 	 

	 
	 	BY:
	 	/s/ CERTAIN INSURANCE COMPANIES
 

	 	 
	 

	 	TITLE:
	 	(As per attached schedule)	 	 

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

EE/ms — 4/1/82

 

 

RE5986H

SIGNING SCHEDULE

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LIMITED

 

It is understood and agreed that, effective 31st December, 1981,
Reinsurers signed lines, which are in percentages of the total
reinsurance provided herein, are as follows and not as stated
heretofore.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	LIABILITY	 	REINSURERS	 	 	 	 	 	REFERENCE
	 	 	 	 	(37.00% ENGLISH AND AMERICAN
	 	 	 	 	 	 	 	 
	 	 	 	 	( INSURANCE COMPANY LIMITED
	 	 	 	 	 	 	 	 
	 	 	 	 	(13.50% CITY INSURANCE COMPANY
	 	 	 	 	 	 	 	 
	 	 	 	 	( (U.K.) LIMITED
	 	 	 	 	 	 	 	 
	 	 	 	 	(12.00% FUJI FIRE & MARINE INSURANCE
	 	 	 	 	 	 	 	 
	 	 	 	 	( COMPANY (UK) LIMITED
	 	 	 	 	 	 	 	 
	 	 	 	 	( 4.50% KEMPER REINSURANCE COMPANY
	 	 	 	 	 	 	 	 
	 	 	 	 	( LIMITED
	 	 	 	 	 	 	 	 
	 	1.33	%	 	( 9.00% LOMBARD INSURANCE COMPANY
	 	 	B6088	 	 	 	82CL01558XAAB	 
	 	 	 	 	( (U .K.) LIMITED
	 	 	 	 	 	 	 	 
	 	 	 	 	(12.00% NIPPON FIRE & MARINE INSURANCE
	 	 	 	 	 	 	 	 
	 	 	 	 	( COMPANY (UK) LIMITED
	 	 	 	 	 	 	 	 
	 	 	 	 	(12.00% POHJOLA INSURANCE COMPANY (UK)
	 	 	 	 	 	 	 	 
	 	 	 	 	( LIMITED
	 	 	 	 	 	 	 	 
	 	 	 	 	Per: Aurora Underwriters Limited
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	1.67	%	 	SCAN RE INSURANCE COMPANY
	 	 	S4109	 	 	 	8211338T3300	 
	 	 	 	 	LIMITED
	 	 	 	 	 	 	A2GB0335250	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	(12.50% SOVEREIGN MARINE AND GENERAL
	 	 	 	 	 	 	 	 
	 	 	 	 	( INSURANCE COMPANY LIMITED
	 	 	 	 	 	 	 	 
	 	 	 	 	(37.50% TOKIO MARINE AND FIRE
	 	 	 	 	 	 	 	 
	 	 	 	 	( INSURANCE COMPANY (UK)
	 	 	 	 	 	 	 	 
	 	 	 	 	( LIMITED
	 	 	 	 	 	 	 	 
	 	1.50	%	 	(25.00% TAISHO MARINE AND FIRE
	 	 	S0016	 	 	 	9466482	 
	 	 	 	 	( INSURANCE COMPANY (UK)
	 	 	 	 	 	 	 	 
	 	 	 	 	( LIMITED
	 	 	 	 	 	 	 	 
	 	 	 	 	(15.00% ALLIANZ INTERNATIONAL
	 	 	 	 	 	 	 	 
	 	 	 	 	( INSURANCE COMPANY LIMITED
	 	 	 	 	 	 	 	 
	 	 	 	 	(10.00% STOREBRAND INSURANCE COMPANY
	 	 	 	 	 	 	 	 
	 	 	 	 	( (UK) LIMITED
	 	 	 	 	 	 	 	 
	 	 	 	 	Per: Willis Faber Underwriting
	 	 	 	 	 	 	 	 
	 	 	 	 	Management Limited.
	 	 	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	LIABILITY	 	REINSURERS	 	 	 	 	 	REFERENCE
	 	0.50	%	 	SOVEREIGN H.D.N. ACCOUNT
	 	 	H0101	 	 	 	S466482	 
	 	 	 	 	Per: W.F. (Underwriting
Managers) Limited
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	0.66	%	 	CNA REINSURANCE OF LONDON
	 	 	C4009	 	 	 	F061267	 
	 	 	 	 	LIMITED
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	(75% RIVER THAMES INSURANCE
	 	 	 	 	 	 	 	 
	 	 	 	 	( COMPANY LIMITED
	 	 	 	 	 	 	 	 
	 	0.50	%	 	(25% SUMITOMO INSURANCE COMPANY
	 	 	R0191	 	 	 	8281555	 
	 	 	 	 	( (EUROPE) LIMITED
	 	 	 	 	 	 	360004468640	 
	 	 	 	 	Per: River Thames Agencies Ltd.
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	0.16	%	 	SOUTH BRITISH INSURANCE COMPANY
	 	 	R01A8	 	 	 	8281555	 
	 	 	 	 	LIMITED
	 	 	 	 	 	 	360005468640	 
	 	 	 	 	Per: River Thames Agencies Ltd.
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	6.32	%	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 

Signed in London, England, this                day of       1982.

NOW KNOW
YE that We, the Reinsurers each of us to the extent of the amount/percentage
underwritten by us respectively, do hereby assume the burden of the Reinsurance, and
promise and bind ourselves, each for itself only and not one for the other and in
respect only of the due proportion of each of us, to the Reinsured, their Executors,
Administrators and Assigns, for the true performance and fulfilment of this Contract.

IN WITNESS WHEREOF the Policy Signing Manager of THE POLICY SIGNING & ACCOUNTING CENTRE
LIMITED (“PSAC”) has subscribed his name on behalf of each of the PSAC Companies and
(where the Companies Collective Signing Agreement (“CCSA”) is being implemented) on
behalf of the Leading CCSA Company which is a PSAC member and authorised to sign this
Contract (either itself or by delegation to PSAC) on behalf of all the other CCSA
Companies.

	 	 	 	 	 

	Signed:

	 	/s/ [ILLEGIBLE]
	 	Policy Department
	 

	 	Policy Signing Manager
	 	Seal

P8202170003275

3283

 

 

RE5986H

ENDORSEMENT NO. 3

to the

WORKERS’ COMPENSATION & GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.

(hereinafter called the “Company”)

by

UNIONAMERICA INSURANCE COMPANY LIMITED

(hereinafter called the “Reinsurer”)

It is hereby mutually understood and agreed effective Midnight December 31, 1981,
the following changes shall be made to this Contract:

	1.	 	ARTICLE 3 — REINSURANCE PREMIUM, Paragraphs (a) and (b) shall be deleted in
their entirety and replaced by the following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided
under this Contract shall be computed by the application
of a rate of .0033% to the Company’s net premium written
on the business covered under Exhibits ‘A’ and ‘B’ subject
to an annual minimum and deposit premium of $62,000 for the combined Sixth
Excess of Loss Layer provided under Exhibits ‘A’ and  ‘B’.
	 
	 	(b)	 	The minimum and deposit premium as provided for in (a) above shall be
payable to Reinsurers in four equal quarterly installments at the beginning of each
calendar quarter. The Company shall undertake to furnish Reinsurers at the
conclusion of each year a report of the net premiums written during such year. If
the annual developed reinsurance premium for the Sixth Excess of Loss Reinsurance
under Exhibits ‘A’ and ‘B’ computed in accordance with the provisions of (a) above
is greater than the minimum and deposit premium, the additional premium shall be
promptly paid to the Reinsurers.”

	2.	 	ARTICLE 10 — OFFSET CLAUSE, shall be deleted in its entirety and replaced by the
following:
	 
	 	 	 “ARTICLE 10 — OFFSET CLAUSE

Each party hereto shall have the right to offset any balance
or balances, whether on account of premiums or on account of
losses, due from one party to any other party under this Contract, against any balance or balances currently due and payable to the one party from the other party under this Contract.”

 

 

-2-

	3.	 	SECTION 2 — LIMIT OF LIABILITY, the Third Paragraph, as contained in EXHIBIT A, EXCESS OF LOSS REINSURANCE OF GENERAL LIABILITY, shall
be deleted in its entirety and replaced by the following:
	 
	 	 	“For purposes of this Exhibit, it is agreed that the Company’s limit of liability
under any and all policies of Personal Accident Insurance (individual and group) covering
any one individual shall be considered as not exceeding $300,000. Subject to this
Agreement and subject to the limits set forth in this Section 2, it is agreed that the
Company is reinsured hereunder for the excess of the amounts set forth in this Section 2
of ultimate net loss any one accident, or series of accidents arising out of one event
involving more than one person covered under such policies issued by the Company.”
	 
	4.	 	SECTION 4 — DEFINITION OF “EACH AND EVERY ACCIDENT OR
OCCURRENCE”, paragraph A. of EXHIBIT A, EXCESS OF LOSS
REINSURANCE OF GENERAL LIABILITY, shall be deleted in its
entirety.
	 
	5.	 	It is further mutually understood and agreed that this reinsurer’s participation as stated in the attached Interests and
Liabilities Agreement attached to and forming part of this Contract is hereby amended to 2.00%

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have
executed  this Endorsement as of the dates undermentioned.

At Boston, Massachusetts this  23rd day of April, 1982

	 	 	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY 

LIBERTY MUTUAL FIRE INSURANCE COMPANY 

LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	[ILLEGIBLE]
 

	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT
 

	 	 
	and at London this 13th day of October, 1982

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 		 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ UNIONAMERICA INSURANCE COMPANY LIMITED
 

	 	 
	 

	 	TITLE:	 	 	 	 

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

EE/ms — 4/1/82

 

 

RE5986H

ENDORSEMENT NO. 3

to the

WORKERS’ COMPENSATION & GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.

(hereinafter called the “Company”)

by

VARIOUS LLOYD’ S UNDERWRITERS

(hereinafter called the “Reinsurer”)

It is hereby mutually understood and agreed effective Midnight December 31, 1981,
the following changes shall be made to this Contract:

	1.	 	ARTICLE 3 — REINSURANCE PREMIUM, Paragraphs (a) and (b) shall be deleted in their
entirety and replaced by the following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided
under this Contract shall be computed by the application
of a rate of .0033% to the Company’s net premium written
on the business covered under Exhibits ‘A’ and ‘B’ subject to an annual minimum and deposit premium of $62,000
for the combined Sixth Excess of Loss Layer provided
under Exhibits ‘A’ and ‘B’.
	 
	 	(b)	 	The minimum and deposit premium as provided for in (a)  above shall be
payable to Reinsurers in four equal quarterly installments at the beginning of each
calendar quarter. The Company shall undertake to furnish Reinsurers at the
conclusion of each year a report of the net premiums written during such year. If
the annual developed reinsurance premium for the Sixth Excess of Loss Reinsurance
under Exhibits ‘A’ and ‘B’ computed in accordance with the provisions of (a) above
is greater than the minimum and deposit premium, the additional premium shall be
promptly paid to the Reinsurers.”

	2.	 	ARTICLE 10 — OFFSET CLAUSE, shall be deleted in its entirety and replaced by
the following:
	 
	 	 	“ARTICLE 10 — OFFSET CLAUSE
	 
	 	 	Each party hereto shall have the right to offset any balance or balances, whether on account
of premiums or on account of losses, due from one party to any other party under this Contract, against any balance or balances currently due and payable to the one party from the other
party under this Contract.”

 

 

-2-

	3.	 	SECTION 2 — LIMIT OF LIABILITY, the Third Paragraph, as contained
in EXHIBIT A, EXCESS OF LOSS REINSURANCE OF GENERAL LIABILITY, shall be deleted in its entirety and replaced by the following:
	 
	 	 	“For purposes of this Exhibit, it is agreed that the Company’s limit of liability under any
and all policies of Personal Accident Insurance (individual and group) covering any one
individual shall be considered as not exceeding $300,000. Subject to this Agreement and
subject to the limits set forth in this Section 2, it is agreed that the Company is
reinsured hereunder for the excess of the amounts set forth in this Section 2 of ultimate
net loss any one accident, or series of accidents arising out of one event involving more
than one person covered under such policies issued by the Company.”
	 
	4.	 	SECTION 4 — DEFINITION OF “EACH AND EVERY ACCIDENT OR
OCCURRENCE” EXHIBIT A, EXCESS OF LOSS
REINSURANCE OF GENERAL LIABILITY, shall be deleted in its entirety.
	 
	5.	 	It is further mutually understood and agreed that this reinsurer’s
participation as stated in the attached Interests and
Liabilities Agreement attached to and forming part of this Contract
is hereby amended to 27.61%

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have executed
this Endorsement as of the dates undermentioned.

	 	 	 	 	 	 	 

	At Boston, Massachusetts this 23rd day of April, 1982	 	 
	 
	 	 	 	 	 	 
	 	 	LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY 

LIBERTY MUTUAL (BERMUDA) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	[ILLEGIBLE]
 

	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT
 

	 	 
	 

	 	 	 		 	 
	and at [ILLEGIBLE] this 27th day of September, 1982
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ VARIOUS LLOYD’S UNDERWRITERS
 

	 	 
	 

	 	TITLE:
	 	(As per attached schedule)
 

	 	 

	 	 	 

	SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

	 	
	 
	 	 
	EE/ms — 4/1/82
	 	 

 

 

Underwriters signed lines hereon are in percentages of the total
reinsurance provided herein.

The share attaching to this contract is subscribed by the
Underwriters Members of the Syndicates the definitive numbers of
which and the proportions reinsured are contained in the schedule
attached.

     Now Know Ye that We the Underwriters, Members of the Syndicates whose
definitive numbers in the after-mentioned List of Underwriting Members of Lloyd’s
are set out in the attached Table, hereby bind ourselves each for his own part and
not one for another, our Heirs, Executors and Administrators, and in respect of his
due proportion only, to pay or make good to the Assured or to the Assured’s
Executors or Administrators or to indemnify him or them against all such loss,
damage or liability as herein provided, such payment to be made after such loss,
damage or liability is proved and the due proportion for which each of us, the
Underwriters, is liable shall be ascertained by reference to his share, as shown in
the said List, of the Amount, Percentage or Proportion of the total sum insured
hereunder which is in the Table set opposite the definitive number of the Syndicate
of which such Underwriter is a Member AND FURTHER THAT the List of Underwriting
Members of Lloyd’s referred to above shows their respective Syndicates and Shares
therein, is deemed to be incorporated in and to form part of this policy, bears the
number specified in the attached Table and is available for inspection at Lloyd’s
Policy Signing Office by the Assured or his or their representatives and a true copy
of the material parts of the said List certified by the General Manager of Lloyd’s
Policy Signing Office will be furnished to the Assured on application.

     In Witness whereof the General Manager of Lloyd’s Policy Signing Office
has subscribed his name on behalf of each of us.

	 	 	 	 	 

	(NM)	 	LLOYD’S POLICY SIGNING OFFICE

	 
	 	 	 	 
	Definitive Numbers of Syndicates and Amount, Percentage
or Proportion of the Total Sum insured hereunder shared
between the Members of those Syndicates.

	 	 	 	
General Manager.

	 	 	 	 	 
	FOR LPSO USE ONLY	 	BROKER	 	LPSO NO. & DATE
	CP033R 2209 2012
	 	614
	 	65481 22 2 82

	 	 	 	 	 	 	 
	AMOUNT, PERCENTAGE	 	 	 	 	 	 
	OR PROPORTION

PERCENT	 	SYNDICATE	 	UNDERWRITER’S REF.	 	PAGE
1
	3.00
	 	799	 	MT70570221	 	 
	4.64
	 	618	 	NA8956219N76	 	 
	0.36
	 	278	 	NA8956219N76	 	 
	1.33
	 	918	 	9514716N1201	 	 
	1.87
	 	694	 	8490LXX10198	 	 
	0.63
	 	694	 	8490KXX10198	 	 
	1.33
	 	109	 	06X3033	 	 
	1.00
	 	322	 	82112457205	 	 
	0.50
	 	56	 	X2509328X	 	 
	0.37
	 	55	 	0520C999LIBE	 	 
	0.13
	 	612	 	0520C999LIBE	 	 
	2.00
	 	727	 	9N697X2924	 	 
	5.00
	 	126	 	51397518XJ82	 	 
	2,50
	 	701	 	51397518XJ82	 	 
	0.33
	 	674	 	CSHUS00270	 	 
	0.66
	 	263	 	JXF5135X0250	 	 
	TOTAL LINE	 	NO. OF SYND.	 	FOR LPSO USE ONLY	 	 
	 
	 	 	 	 	 	 

	 	 	 	 	 
	FOR LPSO USE ONLY	 	BROKER	 	LPSO NO. & DATE
	2013
	 	614
	 	65481 22 2 82

	 	 	 	 	 	 	 
	AMOUNT, PERCENTAGE	 	 	 	 	 	 
	OR PROPORTION
PERCENT	 	SYNDICATE	 	UNDERWRITER’S REF.	 	PAGE
2
	0.50	 	204	 	1511000T1	 	 
	0.50	 	780	 	8N516TT	 	 
	0.32	 	365	 	16N1847	 	 
	0.26	 	598	 	07009078	 	 
	0.06	 	453	 	07009078	 	 
	0.32	 	947	 	X724USR561	 	 
	THE LIST OF UNDERWRITING MEMBERS OF LLOYDS IS NUMBERED 1982/ 2

	TOTAL LINE	 	NO. OF SYND.	 	FOR LPSO USE ONLY	 	 
	27.61	 	22	 	55     10993	 	 

	 	 	 	 	 

	

	 	
	 	FOR EMBOSSMENT

BY LLOYD’S POLICY

SIGNING OFFICE

Attaching to and forming part of Lloyd’s Contract No. RE5986Hexv10w185

EXHIBIT
10.185

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.

LIBERTY INSURANCE CORPORATION

LIBERTY NORTHWEST INSURANCE CORPORATION

WORKERS’ COMPENSATION AND GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

PREAMBLE

The Reinsurers hereby reinsure the Company to the extent and on the terms and conditions and
subject to the exceptions, exclusions and limitations hereinafter set forth.

ARTICLE 1 — EXHIBITS COVERED

The Company shall reinsure with the Reinsurers and the Reinsurers shall accept reinsurance from the
Company as set forth in Exhibits “A” and “B”, which are attached hereto and made part of this
Contract, such Exhibits being entitled for purposes of identification as follows:

Exhibit “A” Excess of Loss Reinsurance of General Liability

Exhibit “B” Excess of Loss Reinsurance of Workers’ Compensation

ARTICLE 2 — RETENTION BY COMPANY

This Contract applies only to such portion of any obligation of the Company as the Company retains
net for its own account, and in calculating the amount of any loss hereunder and in computing the
amount or amounts in excess of which this Contract attaches only loss or losses in respect to that
portion of any obligation which the Company retains net for its own account shall be included.

It is agreed that the amount or amounts of the Reinsurers’ liability hereunder in respect of any
losses shall not be increased by reason of the inability of the Company to collect from any other
Reinsurers whether specific or general, any amount or amounts which may have become due from them
whether such inability arises from the insolvency of such other Reinsurers or otherwise.

ARTICLE 3 — REINSURANCE PREMIUM

	(a)	 	The Reinsurers’ premium for the reinsurance provided under
this Contract shall be computed by the application of a rate

 

-2-

	 	 	of .00363% to the Company’s net premium written on the business covered under Exhibits “A”
and “B” subject to an annual minimum and deposit premium of $68,244 for the combined Sixth
Excess of Loss Layer provided under Exhibits “A” and “B”.
	 
	(b)	 	The minimum and deposit premium as provided for in (a) above shall be payable to Reinsurers
in four equal quarterly installments at the beginning of each calendar quarter. The Company
shall undertake to furnish Reinsurers at the conclusion of each year a report of the net
premiums written during such year. If the annual developed reinsurance premium for the Sixth
Excess of Loss Reinsurance under Exhibits “A” and “B” computed in accordance with the
provisions of (a) above is greater than the minimum and deposit premium, the additional
premium shall be promptly paid to the Reinsurers.
	 
	(c)	 	The term “net premium written” shall mean gross premiums written by the Company on the
business covered hereunder less return premiums for cancellations and reductions and less
premiums on reinsurance which inures to the benefit of the Reinsurers. No deduction shall be
made for dividends declared, paid or credited to policyholders of the Company.

ARTICLE 4 — SUBROGATION

The Company hereby agrees to enforce such subrogation rights as it may obtain by virtue of payments
made under its policies, but in case the Company shall refuse or neglect to do so, the Reinsurers
are hereby authorized and empowered to bring any appropriate action in the name of the Company or
its policyholders or otherwise to enforce such rights.

The expense of any subrogation proceedings brought by the Company or the Reinsurers to enforce such
rights shall be apportioned between the Company and the Reinsurers in the ratio of their respective
interests in the total subrogation recovery but in the event there is a failure to make a
subrogation recovery the expense of the proceedings shall be apportioned between the Company and
the Reinsurers in the ratio of their respective interests in the total loss.

All subrogation recoveries made by either party subsequent to payments made by the Reinsurers under
this Contract shall be applied as if made prior to said payments and all necessary adjustments
shall be made between the Company and the Reinsurers as soon as practicable after said subrogation
recovery is made.

The Company shall have the right, before the happening of the accident or occurrence to waive its
right of subrogation.

 

-3-

ARTICLE 5 — TAX CLAUSE

In consideration of the terms under which this Contract is issued, the Company undertakes not to
claim any deduction in respect of the premium hereon when making tax returns, other than Income or
Profits tax returns to any State or to the District of Columbia.

ARTICLE 6 — PAYMENTS UNDER THIS CONTRACT

All amounts due to either party hereunder shall be payable in United States currency.

ARTICLE 7 — ACCESS TO RECORDS

The Reinsurers or their duly appointed representatives shall at reasonable times, have free access
to all books and records of the Company and of its agents or attorneys for the purpose of obtaining
any further information concerning this reinsurance or the subject matter hereof.

ARTICLE 8 — INSOLVENCY CLAUSE

The reinsurance provided by this Contract shall be payable by the Reinsurers directly to the
Company or to its liquidator, receiver or statutory successor on the basis of the liability of the
Company under the contracts reinsured without diminution because of the insolvency of the Company.
In the event of the insolvency of the Company, the liquidator or receiver or statutory successor of
the Company shall give written notice of the pendency of each claim against the Company on a policy
or bond reinsured within a reasonable time after such claim is filed in the insolvency proceeding;
and during the pendency of such claim, the Reinsurers may investigate such claim and interpose, at
their own expense, in the proceeding where such claim is to be adjudicated any defense or defenses
which it may deem available to the Company, its liquidator or receiver or statutory successor. The
expense thus incurred by the Reinsurers shall be chargeable, subject to court approval, against the
Company as a part of the expense of liquidation to the extent of such proportionate share of the
benefit as shall accrue to the Company solely as a result of the defense undertaken by the
Reinsurers.

The reinsurance shall be payable as hereinbefore in the above paragraph provided except as
otherwise provided by Section 315 (relating to Fidelity and Surety Risks) of the Insurance Law of
New York or except (a) where the Contract specifically provides another payee of such reinsurance
in the event of the insolvency of the

 

-4-

Company and (b) where the Reinsurers with the consent of the direct insured or insureds have
assumed such policy obligations of the Reinsurers to the payees under such policies and in
substitution for the obligations of the Company to such payees.

ARTICLE 9 — ARBITRATION

As a condition precedent to any right of action hereunder, any dispute arising out of this Contract
shall be submitted to the decision of a board of arbitration of two arbitrators and an umpire,
meeting in Boston, Massachusetts unless otherwise agreed.

The members of the board of arbitration shall be active or retired disinterested officials of
insurance or reinsurance companies, or Lloyds Underwriters. Each party shall appoint its
arbitrator and the two arbitrators shall choose an umpire before instituting the hearing. In the
event that either party should fail to choose an arbitrator within thirty (30) days following a
written request by the other party to enter upon arbitration, the requesting party may choose two
arbitrators who shall in turn choose an umpire before entering upon arbitration. In the event the
two arbitrators fail to agree on an umpire either party shall have the right to submit the matter
to the American Arbitration Association in effect at that time.

Each party shall present its case to the arbitrators within sixty (60) days following the date of
their appointment. The board shall make its decision with regard to the custom and usage of the
insurance and reinsurance business. The board shall issue its decision in writing based upon a
hearing in which evidence may be introduced without following strict rules of evidence but in which
cross examination and rebuttal shall be allowed. The board shall make its decision within 60 days
following the termination of the hearings unless the parties consent to an extension. The majority
decision of the board shall be final and binding upon all parties to the proceeding. Judgement may
be entered upon the award of the board in any court having jurisdiction thereof.

If more than one Reinsurer is involved in the same dispute, all such Reinsurers shall constitute
and act as one party for purposes of this clause and communications shall be made by the Reassured
to each of the Reinsurers constituting the one party, provided, however, that nothing therein shall
impair the rights of such Reinsurers to assert several, rather than joint, defenses or claims, nor
be construed as changing the liability of the Reinsurers under the terms of this Contract from
several to joint.

Each party shall bear the expense of its own arbitrator and shall jointly and equally bear with the
other party the expense of the

 

-5-

umpire. The remaining costs of the arbitration proceedings shall be allocated by the board.

ARTICLE 10 — OFFSET CLAUSE

Each party hereto shall have the right to offset any balance or balances, whether on account of
premiums or on account of losses, due from one party to any other party under this Contract against
any balance or balances currently due and payable to the one party from the other party under this
Contract.

ARTICLE 11 — ADVANCES

If the Reinsurer is unauthorized in any State of the United States of America or the District of
Columbia where authorization is required by insurance regulatory authorities, the Reinsurers will
fund (provided particulars are received forty-five days prior to the date funding is required by
the Company) outstanding losses by either cash advances, escrow accounts for the benefit of the
Company, Letters of Credit, or a combination thereof, if a penalty would accrue to the Company on
its statement without such funding. The Reinsurers shall have the sole option of determining the
method of funding referred to above provided it is acceptable to the insurance regulatory
authorities involved.

LOSS RESERVES: (U.S. Dollar Reinsurance Letter of Credit) (Applies only to those
Reinsurers who are domiciled outside the United States of America who cannot qualify for credit by
the State having jurisdiction over the Company’s loss reserves).

As regards policies or bonds issued by the Company coming within the scope of this Contract, the
Company agrees that when it shall file with the Insurance Department or set up on its books
reserves for losses covered hereunder which it shall be required to set up by law it will forward
to the Reinsurers a statement showing the proportion of such loss reserves which is applicable to
them. The Reinsurers hereby agree that they will apply for and secure delivery to the Company a
clean irrevocable Letter of Credit issued by Citibank N.A. in an amount equal to Reinsurers’
proportion of said loss reserves.

 

-6-

The Company undertakes to use and apply any amounts which it may draw upon such Credit pursuant to
the terms of the Contract under which the Letter of Credit is held, and for the following purposes
only:

	 	A.	 	To pay the Reinsurers’ share or to reimburse the Company for the
Reinsurers’ share of any liability for loss reinsured by this Contract.
	 
	 	B.	 	To make refund of any sum which is in excess of the actual amount
required to pay Reinsurers’ share of any liability reinsured by this
Contract.

Citibank N.A. shall have no responsibility whatsoever in connection with the propriety of
withdrawals made by the Company or the disposition of funds withdrawn, except to see that
withdrawals are made only upon the order of properly authorized representatives of the Company.

ARTICLE 12 — SERVICE OF SUIT

This Article applies to other than authorized Reinsurers and to Reinsurers domiciled outside
the United States of America.

In the event of the failure of the Reinsurers to pay any amount claimed to be due hereunder, the
Reinsurers, at the request of the Company, will submit to the jurisdiction of any court of
competent jurisdiction within the United States and will comply with all requirements necessary to
give such court jurisdiction and all matters arising hereunder shall be determined in accordance
with the law and practice of such court.

Service of process in such suit may be made upon Messrs. Mendes and Mount, Three Park Avenue, New
York, New York 10016, or any other designated attorney, and that in any suit instituted, the
Reinsurers will abide by the final decision of such court or of any appellate court in the event of
an appeal.

The above named are authorized and directed to accept service of process on behalf of the
Reinsurers in any such suit and/or upon the request of the Company to give a written undertaking to
the Company that they will enter a general appearance upon the Reinsurers’ behalf in the event such
a suit shall be instituted.

Further, pursuant to any statute of any state, territory or district of the United States which
makes provisions therefore, the Reinsurers hereby designate the Superintendent, Commissioner or
Director of Insurance or other officer specified for that purpose in the statute, or his successor
or successors in office, as their

 

-7-

true and lawful attorney upon whom may be served any lawful process in any action, suit or
proceeding instituted by or on behalf of the Company or any beneficiary hereunder arising out of
this Contract of reinsurance, and hereby designate the above named as the person to whom the said
officer is authorized to mail such process or a true copy thereof.

ARTICLE 13 — ERRORS AND OMISSIONS

Any inadvertent delay, omission or error shall not be held to relieve either party hereto from any
liability which would attach to it hereunder if such delay, omission or error had not been made,
provided such delay, omission or error is rectified upon discovery.

ARTICLE 14 — COMMENCEMENT AND TERMINATION

This Contract applies only to accidents or occurrences happening during its effective period. This
Contract is effective at Midnight, December 31, 1982 Standard Time in Boston, Massachusetts and
shall remain in force continuously unless terminated at midnight on any subsequent December 31 by
either party giving the other at least three months prior notice of cancellation. Otherwise, this
Contract may be cancelled only by mutual consent, or if required by law or administrative order.

ARTICLE
15 — REINSURANCE INTERMEDIARY DESIGNATION

Holborn Agency Corporation, 90 John Street, New York, New York 10038 is hereby recognized as the
Intermediary negotiating this Contract for all business hereunder. All communications (including
but not limited to notices, statements, premiums, return premiums, commissions, taxes, losses, loss
adjustment expense, salvages and loss settlements) relating thereto shall be transmitted to the
Company or the Reinsurers through Holborn Agency Corporation. Payments by the Company to the
Intermediary shall be deemed to constitute payment to the Reinsurer. Payments by the Reinsurers to
the Intermediary shall be deemed to constitute payment to the Company only to the extent that such
payments are actually received by the Company.

ARTICLE 16 — INTERPRETATION

The validity and interpretation of this Contract and of each Article and part thereof shall be
governed by the Law of the Commonwealth of Massachusetts.

EE/te — 6/22/83

 

 

EXHIBIT A

EXCESS OF LOSS REINSURANCE OF GENERAL LIABILITY

SECTION
1 — COVERAGE

The Reinsurers hereby reinsure the Company, subject to the provisions and conditions herein
contained, in respect of liability which may accrue to the Company under any contracts of insurance
or reinsurance (hereinafter referred to as obligations of the Company), but excluding liability in
connection with the following class of business or contracts:

Workers’ Compensation and Employers’ Liability insurance, but this exclusion shall not
apply to Workers’ Compensation or Employers’ Liability coverage given under public
liability policies written by the Company (other than Umbrella Excess Liability
policies).

Bankers’ and Brokers’ insurances or reinsurances issued by the Company meaning
contracts issued to banks, trust companies, building and loan companies, safe
deposit companies, investment companies, including investment trusts, finance
companies, credit unions, stock or security brokers, or to similar financial
institutions, insuring them against loss from the following hazards:

Infidelity of employees and/or partners

Unfaithful performance of
duties by employees
and/or partners

Loss of property in
transit

Forgery
or alteration of negotiable or other paper Burglary, robbery,
theft, false pretenses or fraud Mysterious desappearance or misplacement
of
property

Loss of property from safe deposit boxes or other
depositories

Damage to or destruction of money or securities

Counterfeiting of
currencies or securities

Motor Vehicle Physical Damage Insurance, but this exclusion shall not apply to Motor Vehicle
Property Damage Liability Insurance.

Credit Insurance and/or Financial Guarantee.

Fire Insurance, including the coverages ordinarily written under Extended Coverage Endorsements.

Business ceded to and assumed from the Pollution Liability Insurance Association.

 

-2-

Group Health, Disability, Hospital or Surgical Insurance, but this exclusion shall not apply to any
loss due to two or more persons insured under one or more Group policies suffering bodily injuries,
including death resulting therefrom, as a result of one accident or series of accidents arising out
of one event.

Livestock Mortality Insurance.

Surety business, but this exclusion shall not apply to faithful performance bonds or public
official bonds; provided, however, that the Reinsurers shall not be liable for any loss resulting
from the insolvency of any firm, company, corporation or bank with which a guaranteed official has
deposited funds in the course of his duties.

Insurance covering the liability of owners or operators of aircraft carrying passengers for hire
for injuries to such passengers.

Contracts of insurance written on any cost-plus plan which provides for payment of the full amount
of all losses, however great, by the policyholder. This exclusion shall not apply to contracts of
insurance, premiums for which are determined by a retrospective rating plan which provides for a
specific maximum premium or a formula for determination of a maximum premium.

Contracts of liability insurance covering injuries to persons or property arising out of the rail
operations of Class 1 railroads; but this exclusion shall not apply to railroad Protective
Liability policies issued at the request of the Company’s policyholders doing work for or on the
premises of such railroads.

Liability under any Insolvency Fund arising by contract, operation of law or otherwise, whether
voluntary or involuntary. “Insolvency Fund” includes any guaranty fund, insolvency fund, plan,
pool, association, fund or other arrangement, howsoever denominated, established or governed; which
provides for any assessment of or payment or assumption by the Company of part or all of any claim,
debt, charge, fee, or other obligation of an insurer, or its successors, or assigns, which has been
declared by any competent authority to be insolvent, or which has been otherwise deemed unable to
meet any claim, debt, charge, fee or other obligation in whole or in part.

Excess of Loss Reinsurance Contracts.

This
Contract is subject to the Nuclear Incident Exclusion Clause — Liability – Reinsurance and the
Nuclear Incident Exclusion Clause — Physical Damage – Reinsurance attached hereto.

 

-3-

SECTION 2 — LIMIT OF LIABILITY

The
Reinsurer shall be liable for ultimate net loss in excess of the sum of $30,000,000 of
ultimate net loss each and every accident or occurrence in respect of business the subject matter
of this Exhibit, subject to a limit of $15,000,000 on account of each and every accident or
occurrence.

It is also agreed that subrogation expense incurred shall be paid in addition to the applicable
limits of liability set forth in this Section 2, on the basis provided in Article 4 of the
Contract.

For purposes of this Exhibit, it is agreed that the Company’s limit of liability under any and all
policies of Personal Accident Insurance (individual and group) covering any one individual shall be
considered as not exceeding $300,000. Subject to this Agreement and subject to the limits set
forth in this Section 2, it is agreed that the Company is reinsured hereunder for the excess of the
amounts set forth in this Section 2 of ultimate net loss any one accident, or series of accidents
arising out of one event involving more than one person covered under such policies issued by the
Company.

SECTION
3 — ULTIMATE NET LOSS

The term “Ultimate Net Loss” as used in this Exhibit shall mean the amount actually paid by the
Company (including 80% of Extra Contractual Obligations as defined below, loss adjustment expenses,
attorneys’ fees and other costs of investigation or litigation) in settlement of or payment of
claims or judgements arising from each and every loss for which the Company is or may be found
liable under its contracts of insurance or reinsurance, less salvages and subrogation recoveries
and amounts recovered or recoverable under pooling agreements or other reinsurances, whether
collectible, or not; provided, however, that in the event of the insolvency of the Company,
“Ultimate Net Loss” shall mean the amount of loss (including 80% of Extra Contractual Obligations,
loss adjustment expenses, attorneys’ fees and other costs of investigation or litigation) which the
Company has incurred or for which it is liable, and payment by the Reinsurers shall be made to the
liquidator, receiver or statutory successor of the Company in accordance with the provisions of
Article 8 of this Contract. Salaries and expenses of employees of the Company shall not be
included in ascertaining ultimate net loss.

The term “Extra Contractual Obligations” are defined as those liabilities not covered under any
other provision of this Agreement and which arise from the handling of any claim on business
covered

 

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hereunder, such liabilities arising because of, but not limited to, the following: failure by the
Reassured to settle within the policy limit, or by reason of alleged or actual negligence, fraud or
bad faith in rejecting an offer of settlement or in the preparation of the defense or in the trial
of any action against its Insured or Reinsured or in the preparation or prosecution of an appeal
consequent upon such action.

The date on which any Extra Contractual Obligation is incurred by the Reassured shall be deemed, in
all circumstances, to be the date of the original accident, casualty, disaster or loss occurrence.

However, Extra Contractual Obligations coverage shall not apply when such loss has been incurred
due to the fraud of a member of the Board of Directors or a corporate officer of the Reassured
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.

This Contract shall protect the Company within the limit hereof, in connection with any loss for
which the Company may be legally liable to pay in excess of the limit of its original policy, where
loss in excess of the limit has been incurred because of its failure to settle within the policy
limit or by reason of alleged or actual negligence, fraud or bad faith in rejecting an offer of
settlement or in the preparation of the defense or in the trial of any action against its insured
or in the preparation of prosecution of an appeal consequent upon such action.

It is agreed that the Company may carry underlying limits of indemnity recoveries under which shall
inure to the sole benefit of the Company and shall be disregarded in computing the net excess loss
in excess of which this Contract attaches.

SECTION
4 — DEFINITION OF “EACH AND EVERY ACCIDENT OR OCCURRENCE”

The term “each and every accident or occurrence” as used in this Exhibit is defined as follows
according to the class or risk involved:

	 	A.	 	Fidelity and Forgery
	 
	 	 	 	All losses resulting from any fraudulent or dishonest act or omission or series
thereof on the part of any one person or of several persons acting in collusion
(whether employees or not) and irrespective of the number of the Company’s obligations
involved; provided, that in the case of any loss involving two or more persons acting
in

 

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	 	 	 	collusion, losses resulting from separate acts or omissions on the part of each such person
shall be included as part of such loss.

	 	1.	 	It is agreed that each and every loss occurring prior to midnight on
the date of termination of this Contract and discovered not later than three
years after such termination (excluding only any loss which occurred wholly
prior to midnight on the effective date of this Contract) shall be recoverable
under this Contract.
	 
	 	2.	 	It is further agreed that each and every loss resulting from a
series of acts or omissions, some prior to and some subsequent to midnight
on the effective date of this Contract, shall be disregarded.

	 	 	 	As regards losses arising under policies and/or contracts covering on a “losses discovered” or
“claims made during” basis (that is to say policies and/or contracts in which the date of
discovery of the loss, or the date the claim is made against the insured or is first notified
to the Company, determines under which policy and/or contract the loss is collectible), such
losses are covered hereunder and the date of the discovery of such loss or the date such claim
is made or first notified shall be deemed to be the date of loss occurring for the purposes of
this Contract, provided that the date of the discovery of the loss or the date the claim is
made or first notified falls within the period covered by this Contract.
	 
	 	 	 	For the purposes of the foregoing the date of first discovery of a “loss” or the date the
claim is first made against an insured or first notified to the Company shall be the date
applicable to the entire loss and/or claim and the Reinsurers shall be liable for their
proportion of the entire loss and/or claim irrespective of the expiry date of this Contract
and provided that such first discovery date or first date such claim is made or notified falls
within the period of this Contract.
	 
	 	B.	 	Liability Insurance Written Subject to an Aggregate Limit
	 
	 	 	 	As respects each and every liability insurance policy issued by the Company which contains one
or more aggregate limits of liability on a policy year basis, and as

 

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	 	 	 	respects each such aggregate limit under each policy year, the aggregate amount of all
losses occurring during one policy year. Where the Company issues more than one such
policy to the same policyholder such policies shall together be treated as though
they were one policy. Losses under such policies shall for the purposes of this
reinsurance contract be deemed to have occurred in the calendar year in which the
inception date of the policy falls, except that as respects such policies issued for
a period in excess of twelve months, losses for the first twelve month period shall
be deemed to have occurred in the calendar year in which the inception date of the
policy falls and losses for each succeeding twelve month period or part thereof shall
be deemed to have occurred in the calendar year in which the anniversary date of the
policy starting such period falls.
	 
	 	C.	 	All Other Classes or Risks Covered hereunder (Including Completed
Operations)
	 
	 	 	 	All injuries to persons and all losses of, injury to or destruction of property
resulting from each accident or loss, or from each series of accidents or losses
proximately arising out of or following on any one cause or event.

SECTION
5 — CLAIMS AGAINST REINSURERS

The Company shall be the sole judge as to what claims are covered under its policies, and all loss
settlements made and all judgements paid by the Company, provided they are within the terms and
conditions of this Exhibit, shall be unconditionally binding upon the Reinsurers and amounts
falling to the share of the Reinsurers shall be immediately due and payable by them upon reasonable
evidence of the amount paid being given by the Company. Nevertheless, it is understood and agreed
that in the event of a loss hereunder, or of an event or happening likely to result in a loss
hereunder, the Reinsurers shall have the right, if they so elect, to cooperate with the Company in
the defense or settlement of original losses under its obligations.

All settlements of losses effected by the Company shall be binding upon the Reinsurers, and the
Reinsurers shall be liable for their proportion thereof.

This Exhibit A is attached to and forms part of the Workers’ Compensation and General Liability
Sixth Excess of Loss Reinsurance Contract issued to LIBERTY MUTUAL INSURANCE COMPANY, LIBERTY
MUTUAL FIRE INSURANCE COMPANY, LIBERTY MUTUAL (BERMUDA) LTD., LIBERTY INSURANCE CORPORATION and
LIBERTY NORTHWEST INSURANCE CORPORATION.

EE/te 6/24/83

 

 

EXHIBIT B

 EXCESS OF LOSS REINSURANCE OF WORKERS’ COMPENSATION

SECTION 1 — COVERAGE

The Reinsurers hereby reinsure the Company in respect of the liability of the Company, under (1)
policies (the premium for which is classified by the Company, for internal purposes, as “Workers’
Compensation” or “Employers’ Liability”) by which the Company insures the liability of employers
under law or contract which imposes liability upon such employer for injury, sickness or disease,
including death resulting therefrom, sustained by his employees, and (2) Employers Liability
coverage provided under Umbrella Excess Liability policies.

SECTION 2 — LIMITS OF LIABILITY

The Reinsurers shall be liable for ultimate net loss in excess of the sum of $30,000,000 of
ultimate net loss each and every accident or occurrence in respect of business the subject
matter of this Exhibit, subject to a limit of $15,000,000 on account of each and every
accident or occurrence.

It is also agreed that subrogation expense incurred shall be paid in addition to the applicable
limits of liability set forth in this Section 2, on the basis provided in Article 4 of the
Contract.

SECTION 3 — ULTIMATE NET LOSS

The term “ultimate net loss” as used in this Exhibit means the amount actually paid by the
Company (including but not limited to 80% of Extra Contractual Obligations as defined in Section 5,
medical losses, interests, costs and allocated claim expense) in respect of claims arising from any
one accident or occurrence, for which the Company is or may be found liable, after making proper
deductions for amounts paid or due under other reinsurance (whether collectible or not),
subrogation recoveries, overpayments collected, and refunds to the Company from the New York
Aggregate Trust Fund, second injury funds and other such funds; provided, however, that in the
event of the insolvency of the Company, “ultimate net loss” as used in this Exhibit means the
amount of loss (including but not limited to 80% of Extra Contractual Obligations, medical losses,
interests, costs and allocated claim expense) in respect of claims arising from any one accident or
occurrence which the Company has incurred or for which it is liable, and payment by the Reinsurers
shall be made to the liquidator, receiver or statutory successor of the Company in accordance with
the provisions of Article 8 of this Contract. Expenses for salaried employees of the Company
incurred in litigation and the investigation or adjustment of claims or suits and subrogation
expense referred to in Article 4 shall be disregarded in ascertaining ultimate net loss.

 

-2-

This Contract shall protect the Company within the limit hereof in connection with any loss for
which the Company may be legally liable to pay in excess of the limit of its original policy, where
loss in excess of the limit has been incurred because of its failure to settle within the policy
limit or by reason of alleged or actual negligence, fraud or bad faith in rejecting an offer of
settlement or in the preparation of the defense or in the trial of any action against its insured
or in the preparation of prosecution of an appeal consequent upon such action.

It is agreed that the Company may carry underlying limits of indemnity recoveries under which shall
inure to the sole benefit of the Company and shall be disregarded in computing the net excess loss
in excess of which this Contract attaches.

SECTION
4 — EXCLUSIONS

This Exhibit does not apply:

	A.	 	To excess of loss reinsurance contracts.
	 
	B.	 	To the following occupations, employments or risks (except when not disclosed to the Company,
when incidental to a non-excluded risk (the company to be the sole judge of what is
incidental) or when insured through voluntary or statutory pools or assigned risk plans):

	 	1.	 	The navigation and operation of vessels on the high
seas in foreign commerce;
	 
	 	2.	 	Underground coal mining;
	 
	 	3.	 	Fireworks manufacturing;
	 
	 	4.	 	Fuse manufacturing;
	 
	 	5.	 	Explosive risks, viz

	 	(a)	 	Manufacture of any explosive substance
intended for use as an explosive;
	 
	 	(b)	 	Manufacture of any product, other than
Fireworks and Fuses, in which any such explosive substance is
an ingredient;
	 
	 	(c)	 	The loading of any such explosive
substance into containers for use as explosive objects,
propellant charges or detonating devices, and the incidental
storage thereof;
	 
	 	(d)	 	Handling transportation or storage of any
such explosive substance intended solely for war purposes.

	C.	 	To any accident or occurrence as to which the Company is

 

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	 	 	entitled to recover the full amount of the loss under an insurance policy written on a
cost-plus plan, that is to say, a plan which provides for the payment of the full amount of
all losses, however great, by the policyholder. This exclusion does not apply to bar
recovery from the Reinsurers with respect to accidents or occurrences under
retrospectively-rated policies.
	 
	D.	 	Liability under any Insolvency Fund arising by contract, operation of law or otherwise, whether voluntary or involuntary. “Insolvency Fund” includes
any guaranty fund, insolvency fund, plan, pool, association, fund or other arrangement,
howsoever denominated, established or governed, which provides for any assessment of or
payment or assumption by the Company of part or all of any claim debt, charge, fee or other
obligation of an insurer, or its successors, or assigns, which has been declared by any
competent authority to be insolvent, or which has been otherwise deemed unable to meet any
claim, debt, charge, fee or other obligation in whole or in part.

SECTION 5 — DEFINITIONS

As used in this Exhibit the following terms shall have the meanings stated herein:

	A.	 	“Policies”. Policies, contracts, endorsements or binders, including but not limited to those
by which the Company undertakes to offer and pay “voluntary compensation” benefits, those by
which the Company undertakes to make payments to augment compensation benefits those by which
the Company affords reinsurance or excess insurance to Workers’ Compensation or Employers’
Liability risks and those by which the Company undertakes to participate in voluntary or
statutory pools or assigned-risk plans.
	 
	B.	 	“Explosive Substance”. Any substance manufactured for the express purpose of exploding as
differentiated from commodities used industrially and which are only
incidentally explosive —  such as gasoline, celluloid, fuel gases and dyestuffs.
	 
	C.	 	“Accident or Occurrence.” Any one accident or occurrence or series of accidents or
occurrences arising out of one event provided that, with respect to disease or death resulting
therefrom, the terms accident or occurrence and series of accidents or occurrences shall mean
the claim or series of claims occasioned by the disease or diseases having a common cause or
origin. The Company shall be the sole judge of what constitutes disease or diseases having a
common cause or origin. The Company shall assign the claim or series of claims to a policy
year of coverage under any one policy or

 

-4-

	 	 	renewal thereof and will be bound by the following principles:

	 	1.	 	If the liability is placed solely upon the employer or
insurer as of the date the claimant’s disability commences or
becomes manifest and that date is within a period of coverage under
an applicable policy issued
by the Company, the loss shall be deemed to have been sustained by
the Company at such date.
	 
	 	2.	 	If assignment is not made on the basis stated in the
preceding subparagraph the claim is to be assigned to the policy
year of the date of claimant’s last injurious exposure during a
period of coverage under an applicable policy issued by the
Company.

	 	 	Notwithstanding anything to the contrary above set forth, it is agreed that the date of the
loss occurrence for the purpose of this reinsurance shall be deemed to be the inception,
anniversary or renewal date of the Company’s original policy. Losses occurring under a
policy in-force at December 31, 1982 shall be assigned to this Agreement to the extent such
losses are not assignable to the 1982 Contract year.
	 
	 	 	Notwithstanding the foregoing, where a policyholder requests that it be issued two or more
policies in circumstances where applicable manual rules permit the issuance of a single
policy such policies shall be regarded as a single policy for purposes of assigning disease
claims to a policy year coverage.
	 
	 	 	“Policy year” shall mean each separate original policy period of not exceeding twelve months
commencing at the inception, anniversary or renewal date on or after the inception of this
Agreement.
	 
	D.	 	“Extra Contractual Obligations” are defined as those liabilities not covered under any
other provision of this Agreement and which arise from the handling of any claim on business
covered hereunder, such liabilities arising because of, but not limited to, the following:
failure by the Reassured to settle within the policy limit, or by reason of alleged or actual
negligence, fraud or bad faith in rejecting an offer of settlement or in the preparation of
the defense or in the trial of any action against its Insured or Reinsured or in the
preparation or prosecution of an appeal consequent upon such action.

 

-5-

	 	 	The date on which any Extra Contractual Obligation incurred by the Reassured shall be
deemed, in all circumstances, to be the date of the original accident, casualty, disaster
or loss occurrence.
	 
	 	 	However, Extra Contractual Obligations coverage shall not apply when such loss has been
incurred due to the fraud of a member of the Board of Directors or a corporate officer of
the Reassured 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.

SECTION 6 — NOTICE TO REINSURERS

As soon as practicable after it appears probable that the Company’s ultimate net loss on account of
any one accident or occurrence will exceed the amount above which the Reinsurers are liable under
this Exhibit, the Company shall notify the Reinsurers and provide them full information relative
thereto, and copies of all papers that may be desired by them, and the Reinsurers shall be given
every opportunity to participate in the defense of any such suit, proceeding or claim at their own
expense.

SECTION 7 — PAYMENT BY THE COMPANY

The Company shall be the sole judge as to what claims are covered under its policies, as to the
liability of the Company therefor and as to the amounts which the Company should pay thereon, and
the Reinsurers shall be bound by the judgement of the Company as to such matters.

All settlements of losses effected by the Company shall be binding upon the Reinsurers, and the
Reinsurers shall be liable for their proportion thereof.

SECTION 8 — CLAIMS AGAINST REINSURERS

The Company shall, after it has paid any amount of ultimate net loss for which the Reinsurers may
be liable under this Exhibit, submit to the Reinsurers a definite claim for such amount. If any
subsequent losses shall be paid by the Company on account of the same accident or occurrence,
additional claims hereunder shall be similarly made from time to time. Losses shall be due and
payable by the Reinsurers within fifteen days after claim hereunder is proved.

All salvages, recoveries and payments recovered or received subsequent to a loss settlement under
this Exhibit shall be applied as

 

-6-

if recovered or received prior to the said settlement and all necessary adjustments shall be
made by the parties hereto.

SECTION 9 — COMMUTATION

Within 48 months from the expiration of each annual period of this Contract the Company shall
submit a statement to the Reinsurers listing amounts paid and reserved for all Workers’
Compensation claims under this Agreement. This statement shall form the basis of an agreed value
for all such losses. The amounts of reserves contained therein shall be calculated in accordance
with the following criteria:

	 	1.	 	Mortality assumptions will be calculated from the latest
available United States census tables as follows:

     Survivor Benefits  — Total Females

     Disability Benefits — Total Males

	 	2.	 	The annual interest discount percentage shall be an average
(rounded to the nearest one-half percentage point) of the before-tax
yields of the Company’s investment purchases for the three latest
available calendar years.
	 
	 	3.	 	Remarriage expectations will be in accordance with the
assumptions used by the National Council on Compensation Insurance in
its statistical tables.
	 
	 	4.	 	For all future medical costs, and annuity calculation shall be
based upon the Company’s evaluation of long term medical care and
rehabilitation requirements, using an annual discount of 0% and an annual
escalation of 0%.

The above criteria shall not apply to losses with future escalation of indemnity benefits as
described below:

	 	1.	 	Annuity values for “index-linked” benefits shall be calculated
based upon an annual discount of 0% and an annual escalation of 0%.
	 
	 	2.	 	For “index-linked” benefits, remarriage expectations will not
be used.

Except as may be mutually agreed for specific losses, these calculations shall be considered the
final and agreed value of all known workers’ compensation losses for the applicable annual period
of this Contract. A resulting payment, if any, shall be accepted by the Company in full settlement
of the Reinsurers’ liability for all such losses. In the event that a workers’ compensation loss
is

 

-7-

not reported to the Company until after the Company’s statement has been submitted, immediate
notice of such loss shall be given to the Reinsurers in order that an agreed present value may be
determined.

SECTION 10 — TWO PERSON WARRANTY

No loss shall be recoverable unless at least two employees of one or more insureds are involved in
the same accident or occurrence or series of accidents or occurrences originating from one event
and the payments to at least two employees are more than $50,000 each. This Warranty does not apply
to Employers Liability Coverage.

This Exhibit B is attached to and forms part of the Workers’ Compensation and General Liability
Sixth Excess of Loss Reinsurance Contract issued to LIBERTY MUTUAL INSURANCE COMPANY, LIBERTY
MUTUAL FIRE INSURANCE COMPANY, LIBERTY MUTUAL (BERMUDA) LTD., LIBERTY INSURANCE CORPORATION and
LIBERTY NORTHWEST INSURANCE CORPORATION.

EE/te — 6/24/83

 

 

NUCLEAR INCIDENT EXCLUSION CLAUSE — LIABILITY — REINSURANCE

	(1)	 	This Agreement does not cover any loss or liability accruing to the Reassured as a member of,
or subscriber to, any association of insurers or reinsurers formed for the purpose of covering
nuclear energy risks or as a direct or indirect reinsurer of any such member, subscriber
or association.
	 
	(2)	 	Without in any way restricting the operation of paragraph (1) of this Clause it is understood
and agreed that for all purposes of this Agreement all the original policies of the Reassured
(new, renewal and replacement) of the classes specified in Clause II of this paragraph (2)
from the time specified in Clause III in this paragraph (2) shall be deemed to include the
following provision (specified as the Limited Exclusion Provision):
	 
	 	 	Limited Exclusion Provision.

	 	I.	 	It is agreed that the policy does not apply under any liability coverage, to
injury, sickness, disease, death or destruction with respect to which an insured under
the policy is also an insured under a nuclear energy liability policy issued by Nuclear
Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or
Nuclear Insurance Association of Canada, or would be an insured under any such policy
but for its termination upon exhaustion of its limit of liability.
	 
	 	II.	 	Family Automobile Policies (liability only), Special Automobile Policies
(private passenger automobiles, liability only), Farmers Comprehensive Personal
Liability Policies (liability only), Comprehensive Personal Liability Policies (
liability only) or policies of a similar nature; and the liability portion of
combination forms related to the four classes of policies stated above, such as the
Comprehensive Dwelling Policy and the applicable types of Homeowners Policies.
	 
	 	III.	 	The inception dates and thereafter of all original policies as described
in II above, whether new, renewal or replacement, being policies which either

	 	(a)	 	become effective on or after 1st May, 1960, or
	 
	 	(b)	 	become effective before that date and contain the Limited
Exclusion Provision set out above;

	 	 	 	provided this paragraph (2) shall not be applicable to Family Automobile Policies, Special
Automobile Policies, or policies or combination policies of a similar nature, issued by the
Reassured on New York risks, until 90 days following approval of the Limited Exclusion
Provision by the Governmental Authority having jurisdiction thereof.

 

-2-

	(3)	 	Except for those classes of policies specified in clause II of paragraph (2) and without in
any way restricting the operation of paragraph (1) of this Clause, it is understood and agreed
that for all purposes of this Agreement the original liability policies of the Reassured (new,
renewal and replacement) affording the following coverages:

	 	 	 	Owners, Landlords and Tenants Liability, Contractual Liability, Elevator Liability,
Owners or Contractors (including railroad) Protective Liability, Manufacturers and
Contractors Liability, Product Liability, Professional and Malpractice Liability,
Storekeepers Liability, Garage Liability, Automobile Liability (including
Massachusetts Motor Vehicle or Garage Liability)

	 	 	shall be deemed to include, with respect to such coverages, from the time specified in
Clause V of this paragraph (3), the following provision (specified as the Broad Exclusion
Provision):
	 
	 	 	Broad Exclusion Provision.
	 
	 	 	It is agreed that the policy does not apply:

	 	I.	 	Under any Liability Coverage, to injury, sickness, disease, death
or destruction

	 	(a)	 	with respect to which an insured under the policy is also an
insured under a nuclear energy liability policy issued by Nuclear Energy
Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or
Nuclear Insurance Association of Canada, or would be an insured under any such
policy but for its termination upon exhaustion of its limit of liability; or
	 
	 	(b)	 	resulting from the hazardous properties of nuclear material
and with respect to which (1) any person or organization is required to
maintain financial protection pursuant to the Atomic Energy Act of 1954, or
any law amendatory thereof, or (2) the insured is, or had this policy not
been issued would be, entitled to indemnity from the United States of
America, or any agency thereof, under any agreement entered into by the
United States of America, or any agency thereof, with any person or
organization.

	 	II.	 	Under any Medical Payments Coverage, or under any Supplementary
Payments Provision relating to immediate medical or surgical •relief, to expenses
incurred with respect to bodily injury, sickness, disease or death resulting from
the hazardous properties of nuclear material and arising out of the operation of
a nuclear facility by any person or organization.
	 
	 	III.	 	Under any Liability Coverage, to injury, sickness, disease, death or
destruction resulting from the hazardous properties of nuclear material, if

	 	(a)	 	the nuclear material (1) is at any nuclear facility owned by, or operated by or on
behalf of, an insured or (2) has been
discharged or dispersed therefrom;

 

-3-

	 	(b)	 	the nuclear material is contained in spent fuel or waste at
any time possessed, handled, used, processed, stored, transported or disposed of by or
on behalf of an insured; or
	 
	 	(c)	 	the injury, sickness, disease, death or destruction arises out of the furnishing
by an insured of services, materials, parts or equipment in connection with the
planning, construction, maintenance, operation or use of any nuclear facility, but if
such facility is located within the United States of America, its territories or
possessions or Canada, this exclusion (c) applies only to injury to or destruction of
property at such nuclear facility.

	 	IV.	 	As used in this endorsement:
	 
	 	 	 	“hazardous properties” include radioactive, toxic or explosive properties; “nuclear material”
means source material, special nuclear material or byproduct material; “source material”,
“special nuclear material”, and “byproduct material” have the meanings given them in the
Atomic Energy Act of 1954 or in any law amendatory thereof; “spent fuel” means any fuel
element or fuel component, solid or liquid, which has been used or exposed to radiation in a
nuclear reactor; “waste” means any waste material (1) containing byproduct material other than
the tailings or wastes produced by the extraction or concentration of uranium or thorium from
any ore processed primarily for its source material content and (2) resulting from the
operation by any person or organization of any nuclear facility included within the definition
of nuclear facility under paragraph (a) or (b) thereof; “nuclear facility” means

	 	(a)	 	any nuclear reactor,
	 
	 	(b)	 	any equipment or device designed or used for (1) separating the isotopes of
uranium or plutonium, (2) processing or utilizing spent fuel, or (3) handling,
processing or packaging waste,
	 
	 	(c)	 	any equipment or device used for the processing, fabricating or alloying of
special nuclear material if at any time the total amount of such material in the custody
of the insured at the premises where such equipment or device is located consists of or
contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or
more than 250 grams of uranium 235,
	 
	 	(d)	 	any structure, basin, excavation, premises or place prepared or used for the
storage or disposal of waste,

	 	 	 	and includes the site on which any of the foregoing is located, all operations conducted on
such site and all premises used for such operations; “nuclear reactor” means any, apparatus
designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain
a critical mass of fissionable material.
	 
	 	 	 	With respect to injury to or destruction of property, the word “injury” or “destruction”
includes all forms of radioactive contamination of property.

 

-4-

	 	V.	 	The inception dates and thereafter of all original policies
affording coverages specified in this paragraph (3), whether new, renewal
or replacement, being policies which either

	 	(a)	 	become effective on or after 1st May, 1960, or
	 
	 	(b)	 	become effective before that date and contain the
Broad Exclusion Provision set out above;
	 
	 	provided this paragraph (3) shall not be applicable to

	 	(i)	 	Garage and Automobile Policies issued by the Reassured on
New York risks, or
	 
	 	(ii)	 	statutory liability insurance required under
Chapter 90, General Laws of Massachusetts,

	 	 	 	until 90 days following approval of the Broad Exclusion Provision by the
Governmental Authority having jurisdiction thereof.
	 
	 	 	 	It is further provided that original liability policies affording coverages
described in this paragraph (3), (other than those policies and coverages
described in (i) and (ii) above), which become effective before 1st May,
1960, and do not contain the Broad Exclusion Provision set out above, but
which contain the Broad Exclusion Provision set out in N.M.A. 1118, shall be
construed as if incorporating such portions of the Broad Exclusion Provision
set out above as are more liberal to the holders of such policies.

	(4)	 	Without in any way restricting the operation of paragraph (1) of this clause it is understood
and agreed that original liability policies of the Reassured, for those classes of policies

	 	(a)	 	described in Clause II of paragraph (2) effective
before 1st June, 1958, or
	 
	 	(b)	 	described in paragraph (3) effective before 1st March, 1958,

	 	 	shall be free until their natural expiry dates or 1st June, 1963, whichever first occurs,
from the application of the other provisions of this Clause.
	 
	(5)	 	Without in any way restricting the operation of paragraph (1) of this Clause, it is
understood and agreed that paragraphs (2) and (3) above are not applicable to original
liability policies of the Reassured in Canada and that with respect to such policies this
Clause shall be deemed to include the Nuclear Energy Liability Exclusion Provisions actually
used on such policies by the Reassured; provided that if the Reassured shall fail to include
such Exclusion Provisions in any such policy where it is legally permitted to do so, such
policy shall be deemed to include such Exclusion Provisions.

 

 

 

NUCLEAR
INCIDENT EXCLUSION CLAUSE — PHYSICAL DAMAGE — REINSURANCE

(Wherever
the word “Reassured” appears in this clause, it shall be
deemed to read “Reassured”, “Reinsured”, “Company”, or whatever other word is employed throughout
the text of the reinsurance agreement to which this clause is
attached to designate the company or companies reinsured.)

     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 (I) 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 or
nuclear installation, or
	 
	 	(b)	 	where said insurance contains a provision excluding coverage for damage to
property caused by or resulting from radioactive contamination, however caused. However
on and after 1st January 1960
this sub-paragraph (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 paragraphs (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.

     5. It 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.

     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.

12/12/57

 

ENDORSEMENT NO. 4

to the

WORKERS’ COMPENSATION AND GENERAL LIABILITY

SIXTH EXCESS OF LOSS REINSURANCE CONTRACT

issued to

LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY MUTUAL FIRE INSURANCE COMPANY

LIBERTY MUTUAL (BERMUDA) LTD.

(hereinafter
called the “Company”)

By

AMERICAN UNION INSURANCE COMPANY OF NEW YORK

INDIANAPOLIS, INDIANA

(hereinafter called the “Reinsurer”)

It is hereby mutually understood and agreed effective Midnight, December 31, 1982, the following
amendments shall be made to this Contract and the Exhibits attached thereto:

	1.	 	Paragraph (a) of ARTICLE 3 — REINSURANCE PREMIUM shall be deleted in its
entirety and be replaced by the following:

	 	“(a)	 	The Reinsurers’ premium for the reinsurance provided
under this Contract shall be computed by the application of a rate of .00363% to
the Company’s net premium written on the business covered under Exhibits ‘A’ and
‘B’ subject to an annual minimum and deposit premium of $68,244 for the combined
Sixth Excess of Loss Layer provided under Exhibits ‘A’ and ‘B’.”

	2.	 	ARTICLE 12 — SERVICE OF SUIT shall be deleted in its entirety and replaced by the
following:
	 
	 	 	“ARTICLE 12 — SERVICE OF SUIT
	 
	 	 	This Article applies to other than authorized Reinsurers and to Reinsurers domiciled outside
the United State of America.
	 
	 	 	In the event of the failure of the Reinsurers to pay any amount claimed to be due hereunder,
the Reinsurers, at the request of the Company, will submit to the jurisdiction of any court
of competent jurisdiction within the United States and

 

-2-

	 	 	will comply with all requirements necessary to give such court jurisdiction and all matters
arising hereunder shall be determined in accordance with the law and practice of such court.
	 
	 	 	Service of process in such suit may be made upon Messrs. Mendes and Mount, Three Park Avenue,
New York, New York 10016, or any other designated attorney, and that in any suit instituted,
the Reinsurers will abide by the final decision of such court or of any appellate court in
the event of an appeal.
	 
	 	 	The above named are authorized and directed to accept service of process on behalf of the
Reinsurers in any such suit and/or upon the request of the Company to give a written
undertaking to the Company that they will enter a general appearance upon the Reinsurers’
behalf in the event such a suit shall be instituted.
	 
	 	 	Further, pursuant to any statute of any state, territory or district of the United States
which makes provisions therefore, the Reinsurers hereby designate the Superintendent,
Commissioner or Director of Insurance or other officer specified for that purpose in the
statute, or his successor or successors in office, as their true and lawful attorney upon
whom may be served any lawful process in any action, suit or proceeding instituted by or on
behalf of the Company or any beneficiary hereunder arising out of this Contract of
reinsurance, and hereby designate the above named as the person to whom the said officer is
authorized to mail such process or a true copy thereof.”
	 
	3.	 	The following exclusion shall be added to SECTION 1 —
COVERAGE of Exhibit “A”:
	 
	 	 	“Business ceded to and assumed from the Pollution Liability Insurance Association.”
	 
	4.	 	The first paragraph of SECTION 2 — LIMIT OF LIABILITY of Exhibit “A” shall be
amended as follows:
	 
	 	 	“The Reinsurer shall be liable for ultimate net loss in excess of the sum of $30,000,000 of
ultimate net loss each and every accident or occurrence in respect of business the subject
matter of this Exhibit, subject to a limit of $15,000,000 on account of each and every
accident or occurrence.”
	 
	5.	 	SECTION 3 — ULTIMATE NET LOSS of Exhibit “A”, shall be amended to include as part of
the ultimate net loss, Extra Contractual Obligations Coverage at 80%. Such coverage shall be
defined as follows:

 

-3-

	 	 	 	“Extra Contractual Obligations are defined as those liabilities not covered under any
other provision of this Contract and which arise from the handling of any claim on
business covered hereunder, such liabilities arising because of, but not limited to,
the following: failure by the Company to settle within the policy limit, or by reason
of alleged or actual negligence, fraud or bad faith in rejecting an offer of
settlement or in the preparation of the defense or in the trial of any action against
its Insured or Reinsured or in the preparation or prosecution of an appeal consequent
upon such action.
	 
	 	 	 	The date on which any Extra Contractual Obligation is incurred by the Company shall be
deemed, in all circumstances, to be the date of the original accident, casualty,
disaster or loss occurrence.
	 
	 	 	 	However, Extra Contractual Obligation coverage shall not apply where the loss 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.”

	6.	 	The first paragraph of SECTION 2 — LIMIT OF LIABILITY of Exhibit “B” shall be
amended as follows:
	 
	 	 	“The Reinsurer shall be liable for ultimate net loss in excess of the sum of $30,000,000 of
ultimate net loss each and every accident or occurrence in respect of business the subject
matter of this Exhibit, subject to a limit of $15,000,000 on account of each and every
accident or occurrence.”
	 
	7.	 	SECTION 3 — ULTIMATE NET LOSS of Exhibit “B”, shall be amended to include as part of
the ultimate net loss, Extra Contractual Obligations Coverage at 80%. Such coverage shall be
defined as follows:

	 	 	 	“Extra Contractual Obligations are defined as those liabilities not covered under any
other provision of this Contract and which arise from the handling of any claim on
business covered hereunder, such liabilities arising because of, but not limited to,
the following: failure by the Company to settle within the policy limit, or by reason
of alleged or actual negligence, fraud or bad faith in rejecting an offer of
settlement or in the preparation of the defense or in the trial of any action against
its Insured or Reinsured or in the preparation or prosecution of an appeal consequent
upon such action.

 

-4-

	 	 	 	The date on which any Extra Contractual Obligation is incurred by the Company shall
be deemed, in all circumstances, to be the date of the original accident, casualty,
disaster or loss occurrence.
	 
	 	 	 	However, Extra Contractual Obligation coverage shall not     apply where the loss 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.”

	8.	 	LIBERTY INSURANCE CORPORATION, a Delaware Corporation, and LIBERTY NORTHWEST INSURANCE
CORPORATION, Portland Oregon, shall be added as named Companies effective February 9, 1983 and
January 3, 1983 respectively.
	 
	9.	 	It is further mutually understood and agreed effective Midnight, December 31, 1982 the
Reinsurer’s participation as set forth in the Interests and Liabilities Agreement attached to
and forming a part of this contract shall be amended to 2.55%.

All other terms and conditions remain unchanged.

IN WITNESS WHEREOF the parties hereto, by their respective duly authorized officers, have executed
this Endorsement, in duplicate, as of the dates undermentioned.

At Boston,
Massachusetts this 23rd day of May, 1984.

	 	 	 	 	 

	 	 	LIBERTY MUTUAL INSURANCE COMPANY
	 	 	LIBERTY MUTUAL FIRE INSURANCE COMPANY
	 	 	LIBERTY MUTUAL (BERMUDA) LTD.
	 	 	LIBERTY INSURANCE CORPORATION
	 	 	LIBERTY NORTHWEST INSURANCE CORPORATION
	 
	 	 	 	 
	 

	 	BY:	 	/s/
	 

	 	 	 	 
	 

	 	TITLE:
	 	ASSISTANT SECRETARY
	 
	 	 	 	 
	and at Indianapolis, Indiana this 31st day of July, 1984.
	 
	 	 	 	 
	 	 	AMERICAN UNION INSURANCE COMPANY OF NEW YORK
	 
	 	 	 	 
	 

	 	BY:	 	/s/
	 

	 	 	 	 
	 

	 	TITLE:
	 	ASST. VICE PRESIDENT

WORKERS’ COMPENSATION AND GENERAL LIABILITY SIXTH EXCESS OF
LOSS REINSURANCE CONTRACT

 EE/te — 7/22/83

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