# Page 2

## PROVISIONS

A. The Insuring Company and the Reinsurer shall jointly and severally be liable for the amount of liability specified in Item 7C unless otherwise provided herein, and the liability of the Reinsurer under Item 7D shall follow that of the Company, except as otherwise separately agreed upon in writing, and shall be subject to all the terms and conditions of the Company's policy. The Company will not use the Reinsurer to comply with its policy and all endorsements thereof which in any manner affect this certificate, and shall make available for inspection or any place at the disposal of the Reinsurer's authorized representatives at reasonable times any of its books relating to the reinsurance or claims in connection therewith.

B. Prompt notice shall be given to the Reinsurer by the Company of any claim, occurrence or accident which appears likely to involve this reinsurance and while the Reinsurer does not undertake to investigate or defend claims or suits it shall nevertheless have the right and be given the opportunity to associate with the Company and its representatives at the Reinsurer's expense in the defense and control of any claim suit or proceeding involving this reinsurance, with the full cooperation of the Company.

C. Any delay, error, omission, or negligent act made by Dar Allen Reinsurance Agency, Inc., in connection with this reinsurance shall not invalidate the liability of the Reinsurer hereunder provided that such delay, error, omission or negligent act is corrected as soon as it is discovered.

D. All claims payable on this reinsurance when settled by the Company shall be binding on the Reinsurer which shall be bound to make assignment of such settlements and, in addition thereto, in the ratio that the Reinsurer's loss payment bears to the Company's gross loss payment with respect to business accepted on an excess of loss basis and in the ratio that the Reinsurer's limit of liability bears to the Company's gross limit of liability with respect to business accepted on a per risk basis, its proportion of expenses other than Company salaries and office expenses incurred by the Company in the investigation and settlement of claims, suits and with the prior consent of the Reinsurer to trial court proceedings, its proportion of court costs and interest on any judgment awarded.

E. Payments and reimbursement of loss and expense incurred by the Company will be made by the Reinsurer to the Company promptly following receipt of proof of loss.

F. The Reinsurer may be paid or credited by the Company with its proportion of salvage reimbursement obtained or recovery made by the Company less the actual cost (excluding Company salaries and office expenses) of obtaining such reimbursement or with such recovery. The coverage afforded by this Certificate is on the excess of loss basis. Salvage shall be applied in the reverse order of joint liability attaches.

G. The Company will be liable for all taxes or premiums paid to the Reinsurer under this Certificate.

H. In the event the provisions of the Company's terms of this Certificate are amended to conform to the statute of any state of the United States, so far as applicable, to the extent that such reinsurance as is afforded hereunder may be credited to the Company as an insurance in such state, the Company hereby understands that, subject to such amendment, the Reinsurer may avail itself of any tax or duty applicable.

I. The Reinsurer hereunder is subject to the Standard Nuclear Incident Exclusion Clause(s) and Standard War Exclusion Clause(s), each of which is incorporated herein.

J. This Certificate is issued by Dar Allen Reinsurance Agency, Inc., as reinsurer hereunder and neither is, nor shall be, any party to this agreement directly or indirectly as a result hereof.

K. Either party may cancel this Certificate at any time by either party giving written notice to the other stating such intention. If such notice is given, the Reinsurer, if notified by the other party within fifteen (15) days thereafter, unless less than thirty (30) days from the date of the notice, shall not be liable for any claim arising after the effective date of cancellation. If the Reinsurer does not notify the Company of such cancellation within fifteen (15) days from the date of the notice, the Reinsurer shall be deemed to have accepted the cancellation.

**DAIR ALLEN REINSURANCE AGENCY, INC.**