# Certificate of Excess Reinsurance

**Certificate No.:** NEX-6194

**Issued by:** NORTH STAR REINSURANCE CORPORATION  
**Address:** 123 William Street, New York, New York

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**CERTIFICATE OF EXCESS REINSURANCE**

Issued by the NORTH STAR REINSURANCE COMPANY, New York, New York (hereinafter called the "Reinsurer") to the party or parties named in Item 1 of the Declarations made a part hereof (hereinafter called the "Reinsured").

WHEREAS an insurance company or companies have issued to the Reinsured a policy or policies of insurance as shown in Item 2 of the Declarations, hereafter referred to as the "underlying insurance";

AND WHEREAS the Reinsured desires additional reinsurance to apply in excess of the underlying insurance.

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## REINSURING AGREEMENT

NOW THEREFORE this Certificate is to further indemnify the Reinsured against ultimate net loss arising out of the hazards covered and as defined in the underlying insurance but only up to an amount not exceeding the limit(s) shown in Item 3 of the Declarations.

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## PREMIUM

THE PREMIUM DUE the Reinsurer for this excess insurance shall be shown in Item 4 of the Declarations payable upon delivery of this Certificate.

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## NOTICE OF LOSS

THE REINSURED shall immediately advise the Reinsurer of any incident or occurrence which appears likely to result in liability under this Certificate and of subsequent developments likely to affect the Reinsurer's liability hereunder. The Reinsurer shall not, however, be called upon to assume charge of the settlement or defense of any claims made, or suits brought or proceedings instituted against the Reinsured, but shall have the right and opportunity to be associated with the Reinsured in the defense and trial of any such claims, suits or proceedings relative to any accident or occurrence which, in the opinion of the Reinsurer may create liability on the part of the Reinsured under the terms of the Certificate. If the Reinsurer avails itself of such right and opportunity, the Reinsured and the Reinsurer shall cooperate in all respects so as to effect a final determination of the claim or claims. Failure on the part of the Reinsured to cooperate shall relieve the Reinsurer, at its option, of liability under this Certificate.

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## LOSS ADJUSTMENT

UPON FINAL DETERMINATION by settlement, award or verdict of the liability of the Reinsured, the Reinsurer shall promptly pay the Reinsured as the Reinsured shall pay and shall have the amount of any ultimate net loss coming within the terms and limits of this excess reinsurance.

ULTIMATE NET LOSS, as used herein, shall be understood to mean the sums paid in settlement of losses for which the Reinsured is liable after making deductions for all recoveries, salvages and other insurances (other than recoveries under the underlying policies of insurance, or policies specifically in excess hereof), whether recoverable or not, and shall exclude all "Costs".

THE WORD "COSTS" shall be understood to mean interest on judgments, investigation, adjustment and legal expenses including taxed court costs and premiums on bonds, for which the Reinsured is not covered by the underlying insurance (excluding, however, all expenses for salaried employees and retained counsel of and all office expenses of the Reinsured).

COSTS INCURRED BY THE REINSURED, with the written consent of the Reinsurer shall be apportioned as follows:

(a) In the event of claim or suit arising which appears likely to exceed the Primary Limit or Limits, no Costs shall be incurred by the Reinsured without the written consent of the Reinsurer.

(b) Should such claim or suit be settled previous to going into court for not more than the Primary Limit or Limits, then no Costs shall be payable by the Reinsurer.

(c) Should, however, the sum for which the said claim or suit may be settled exceed the Primary Limit or Limits, then the Reinsured, upon approval such settlement or consents to the proceedings continuing, shall contribute to the Costs incurred by the Reinsured in the ratio that its proportion of the ultimate net loss as finally adjusted bears to the whole amount of such ultimate net loss.

(d) In the event the Reinsured elects not to appeal a judgment in excess of the Primary Limit or Limits, the Reinsurer may elect to conduct such appeal at its own cost and expense and shall be liable for the taxable court costs and interest incidental thereto, but in no event shall the total liability of the Reinsurer exceed its limit or limits of liability as stated above, plus the costs of such appeal.

(e) In the event a judgment is rendered in excess of the Primary Limit or Limits and the underlying insurance company(ies) elect to appeal such judgment, the duty of obtaining an appeal bond in regard to liability in excess of the Primary Limit or Limits shall rest with the Reinsured and its Primary Carrier.

ALL SALVAGES, recoveries or payments recovered or received subsequent to a loss settlement under this Certificate shall be applied as if recovered or received prior to such settlement and all necessary adjustments shall then be made between the Reinsured and the Reinsurer, provided always that nothing in this clause shall be construed to mean that losses under this Certificate are not recoverable until the Reinsured's ultimate net loss has been finally ascertained.

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## NO SUBROGATION OR INDEMNITY

NOTHING HEREIN CONTAINED shall be construed to mean that the Reinsured shall be required to enforce by legal action any right of subrogation or indemnity before the Reinsurer shall pay any loss covered hereunder.