ACE PROPERTY AND CASUALTY INSURANCE COMPANY v. ARGONAUT INSURANCE COMPANY complaint

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

ACE PROPERTY AND CASUALTY INSURANCE COMPANY, f/k/a CIGNA PROPERTY AND CASUALTY INSURANCE COMPANY, as successor in interest to CENTRAL NATIONAL INSURANCE COMPANY OF OMAHA only to the extent of policies issued by Cravens, Dargen & Company, Pacific Coast and its subsidiaries,

Plaintiff,

v.

ARGONAUT INSURANCE COMPANY,

Defendant.

COMPLAINT

CIVIL ACTION No. ____ _

Plaintiff, ACE Property and Casualty Insurance Company, f/k/a CION A Property

and Casualty Insurance Company, as successor in interest to Central National Insurance

Company of Omaha only to the extent of policies issued by Cravens, Dargen & Company,

Pacific Coast and its subsidiaries ("CNI"), by its undersigned attorneys, for its Complaint states

as follows:

Nature ofthe Action

I. This is an action for breach of a reinsurance contract, Argonaut Certificate

of Facultative Reinsurance DX-608 (the "Reinsurance Contract") because of the wrongful

refusal of Argonaut Insurance Company ("Argonaut") to honor its contractual obligation to pay

amounts due and owing and owing to CNI. In addition, CNI seeks compensatory damages,

#23563277 vi

Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 of 35

including interest, attorneys' fees and costs, for Argonaut's wrongful breach of the Reinsurance

Contract. A copy of the Reinsurance Contract is attached hereto as Exhibit "A."

Parties, Jurisdiction and Venue

2. CNI is an insurance and reinsurance company organized and domiciled in

the Commonwealth of Pennsylvania, with its principal place of business at 436 Walnut Street,

Philadelphia, P A 19106.

3. Argonaut is an insurance and reinsurance company. On information and

belief, Argonaut is organized and domiciled in Illinois, with headquarters at 225 W Washington,

241h Floor, Chicago, IL 60606.

4. This Court has subject matter jurisdiction pursuant to 28 U.S.C. § 1332(a)

because the amount in controversy exceeds $75,000, exclusive of interest, attorneys' fees and

costs, and plaintiff and defendant are citizens of different states.

5. This Court has personal jurisdiction over Argonaut because, on

information and belief, Argonaut has transacted and continues to transact business in the

Commonwealth of Pennsylvania, and/or because the contracts at issue in this lawsuit were

entered into by Argonaut and CNI in the Commonwealth of Pennsylvania, and/or because

Argonaut has the requisite minimum contacts with the Commonwealth of Pennsylvania.

6. Venue is proper in this District pursuant to 28 U.S.C. § 139l(b)(2)

because a substantial part of the events or omissions giving rise to this action occurred in this

District; or, alternatively, pursuant to 28 U.S.C. § 139l(b)(3), on information and belief, because

Argonaut is subject to personal jurisdiction in this District.

Factual Background

7. On or before January 8, 1974, CNI and Argonaut entered into the

Reinsurance Contract, pursuant to which Argonaut agreed to indemnify ("reinsure") CNI with

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respect to the liability that may accrue to CNI as a result of losses occurring under the insurance

policy issued to Lehigh Valley Railroad by Central National Insurance Company ("CNI Policy").

A copy of the underlying policy, CNS 093087, is attached hereto as Exhibit "B."

8. The CNI Policy was issued with an effective date of November 29, 1973

for a 36-month period, but was cancelled short as of November 29, 1975.

9. The Reinsurance Contract was written with layers of reinsurance assumed

by various reinsurers, including Argonaut. As set forth in the Reinsurance Contract, Argonaut

agreed to assume a 50% quota share of the liabilities within its reinsured layer.

10. In accordance with the Reinsurance Contract, CNI paid Argonaut

appropriate premium in respect to the reinsurance assumed by Argonaut under the Reinsurance

Contract.

11. APU, the successor in interest to Lehigh Valley Railroad, sued various

insurers for insurance coverage to pay for environmental remediation and investigation costs at

eleven (11) sites for its operations at these various sites from approximately 1916-1985. In

total, APU demanded approximately $90 million from its insurers.

12. APU sought coverage from the ACE Companies under the CNI Policy and

under certain California Union policies for environmental remediation and investigation costs at

multiple sites.

13. Approximately 87% of APU's demand to the ACE Companies was for

remediation costs incurred at the Lehigh Valley train derailment site in Leroy, New York. The

claims at this site arose primarily from the derailment of two tank cars in 1970 that resulted in

soil, bedrock and groundwater contamination extending over three miles.

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14. The ACE Companies and APU finalized a settlement to resolve these

claims in June 2006.

15. As part of this settlement, the ACE Companies agreed to pay APU

$875,000 in exchange for a full environmental release.

16. The $875,000 settlement payment was allocated among the ACE

Companies' relevant policies consistent with APU's policy-specific, time-specific, and site-

specific settlement demand.

17. The CNI Policy, reinsured by Argonaut pursuant to the Reinsurance

Contract, paid $577,500 of the settlement payment.

18. The settlement payment was allocated equally to each of the two annual

periods contained in the CNI Policy.

19. In accordance with the terms and conditions of the Reinsurance Contract,

CNI advised its reinsurers, including Argonaut, of the APU claim and then of the subsequent

settlement.

20. As of January 2014, Argonaut has failed to pay $306,005.96 due to CNI

under the Reinsurance Contract.

COUNT ONE Breach of Contract

21. CNI incorporates by reference paragraphs l through 20, as if those

averments were fully set forth herein.

22. Pursuant to Section D of the Reinsurance Contract, "All loss settlements

made by the Company, provided they are within the terms and conditions of the original

policy(ies) and within the terms and conditions of this certificate of reinsurance, shall be binding

on the Reinsurer." Ex. A, at 2.

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23. In accordance with Section D of the Reinsurance Contract, Argonaut is

bound by the ACE Companies' settlement resolving the claims against the underlying CNI

Policy.

24. Pursuant to Section D of the Reinsurance Contract, "the Reinsurer shall

promptly pay its proportion of such loss as set forth in the Declarations." Ex. A, at 2.

25. Notwithstanding receipt of the billings for the settlement made pursuant to

the CNI Policy, Argonaut has failed to pay the amounts due and owing.

26. Argonaut's failure to pay the amounts due and owing is a breach of the

Reinsurance Contract, and is without defense or justification.

COUNT TWO Breach of Duty of Utmost Good Faith and Dealing

27. CNI incorporates by reference paragraphs I through 26, as if those


28. Argonaut owes CNI a duty of utmost good faith and fair dealing.

29. CNI has provided all information requested by Argonaut and complied

with all of the terms and condition of the Reinsurance Certificates.

30. Argonaut has improperly refused to honor its obligations under the

Reinsurance Contract by not timely paying CNI's outstanding billings.

31. Argonaut's wrongful refusal to honor the obligations of the Reinsurance

Contract is a violation of its obligations.

32. As a direct and proximate cause of Argonaut's conduct, CNI has sustained

and continues to sustain damages, including incurring attorneys' fees and other costs in

connection with this lawsuit, which resulted from Argonaut's breach of its duty of utmost good

faith and fair dealing.

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33. CNI is therefore entitled to judgment against Argonaut for the breach of its

obligations owed to CNI, including Argonaut's breach of its duty of good faith and fair dealing,

and Argonaut is liable for all resulting damages, including attorneys' fees and interest.

Prayer for Relief

WHEREFORE, Ace Property and Casualty Insurance Company respectfully

requests a judgment against Argonaut Insurance Company as follows:

1. judgment for breach of contract in the amount of $306,005.96;

2. compensatory damages for pre and post-judgment interest, attorneys' fees

and costs, as determined by this Court;

3. such other relief as this Court deems just .and proper.

Jury Demand

Pursuant to Federal Rule of Civil Procedure 38, Plaintiff requests a trial by jury.

Charles E. Leasure III (P A 85431) Alexander L. Harris (PA 311382) PEPPER HAMIL TON LLP Two Logan Square Eighteenth and Arch Streets Philadelphia, Pa. 19103 t: (215) 981-4000 f: (215) 981-1750 [email protected] [email protected]

Dated: April 2, 2014 Attorneys/or Plaintiff ACE Property and Casualty Insurance Company, j!k/a CIGNA Property and Casualty Insurance Company, as successor in interest to Central National Insurance Company of Omaha only to the extent of policies issued by Cravens, Dargen & Company, Pacific Coast and its subsidiaries

-6-#23563277 vl


IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

ACE PROPERTY AND CASUALTY INSURANCE COMPANY, f/k/a CIGNA PROPERTY AND CASUALTY INSURANCE COMPANY, as successor in interest to CENTRAL NATIONAL INSURANCE COMPANY OF OMAHA only to the extent of policies issued by Cravens, Dargen & Company, Pacific Coast and its subsidiaries,

Plaintiff,

v.

ARGONAUT INSURANCE COMPANY,

Defendant.

COMPLAINT

CIVIL ACTION No. ____ _

Plaintiff, ACE Property and Casualty Insurance Company, f/k/a CIGNA Property

and Casualty Insurance Company, as successor in interest to Central National Insurance

Company of Omaha only to the extent of policies issued by Cravens, Dargen & Company,

Pacific Coastand its subsidiaries ("CNI"), by its undersigned attorneys, for its Complaint states

as follows:

Nature of the Action

1. This is an action for breach of a reinsurance contract, Argonaut Certificate

of Facultative Reinsurance DX-608 (the "Reinsurance Contract") because of the wrongful

refusal of Argonaut Insurance Company ("Argonaut") to honor its contractual obligation to pay

amounts due and owing and owing to CNI. In addition, CNI seeks compensatory damages,

#23563277 vi


including interest, attorneys' fees and costs, for Argonaut's wrongful breach of the Reinsurance

Contract. A copy of the Reinsurance Contract is attached hereto as Exhibit "A."

Parties, Jurisdiction and Venue

2. CNI is an insurance and reinsurance company organized and domiciled in

the Commonwealth of Pennsylvania, with its principal place of business at 436 Walnut Street,

Philadelphia, PA 19106.

3. Argonaut is an insurance and reinsurance company. On information and

belief, Argonaut is organized and domiciled in Illinois, with headquarters at 225 W Washington,

241h Floor, Chicago, IL 60606.

4. This Court has subject matter jurisdiction pursuant to 28 U.S.C. § 1332(a)

because the amount in controversy exceeds $75,000, exclusive of interest, attorneys' fees and

costs, and plaintiff and defendant are citizens of different states.

5. This Court has personal jurisdiction over Argonaut because, on

information and belief, Argonaut has transacted and continues to transact business in the

Commonwealth of Pennsylvania, and/or because the contracts at issue in this lawsuit were

entered into by Argonaut and CNI in the Commonwealth of Pennsylvania, and/or because

Argonaut has the requisite minimum contacts with the Commonwealth of Pennsylvania.

6. Venue is proper in this District pursuant to 28 U.S.C. § 1391(b)(2)

because a substantial part of the events or omissions giving rise to this action occurred in this

District; or, alternatively, pursuant to 28 U.S.C. § 1391(b)(3), on information and belief, because

Argonaut is subject to personal jurisdiction in this District.

Factual Background

7. On or before January 8, 1974, CNI and Argonaut entered into the

Reinsurance Contract, pursuant to which Argonaut agreed to indemnify ("reinsure") CNI with

-2-#23563277 vl


respect to the liability that may accrue to CNI as a result of losses occurring under the insurance

policy issued to Lehigh Valley Railroad by Central National Insurance Company ("CNI Policy").

A copy of the underlying policy, CNS 093087, is attached hereto as Exhibit "B."·

8. The CNI Policy was issued with an effective date of November 29, 1973

for a 36-month period, but was cancelled short as of November 29, 1975.

9. The Reinsurance Contract was written with layers of reinsurance assumed

by various reinsurers, including Argonaut. As set forth in the Reinsurance Contract, Argonaut

agreed to assume a 50% quota share of the liabilities within its reinsured layer.

10. In accordance with the Reinsurance Contract, CNI paid Argonaut

appropriate premium in respect to the reinsurance assumed by Argonaut under the Reinsurance

Contract.

11. APU, the successor in interest to Lehigh Valley Railroad, sued various

insurers for insurance coverage to pay for environmental remediation and investigation costs at

eleven (11) sites for its operations at these various sites from approximately 1916-1985. In

total, APU demanded approximately $90 million from its insurers.

12. APU sought coverage from the ACE Companies under the CNI Policy and

under certain California Union policies for environmental remediation and investigation costs at

multiple sites.

13. Approximately 87% of APU's demand to the ACE Companies was for

remediation costs incurred at the Lehigh Valley train derailment site in Leroy, New York. The

claims at this site arose primarily from the derailment of two tank cars in 1970 that resulted in

soil, bedrock and groundwater contamination extending over three miles.

-3-#23563277 vl


14. The ACE Companies and APU finalized a settlement to resolve these

claims in June 2006.

15. The settlement payment was allocated among the ACE Companies'

relevant policies consistent with APU's policy-specific, time-specific, and site-specific

settlement demand.

16. The CNI Policy, reinsured by Argonaut pursuant to the Reinsurance

Contract, paid $577,500 of the settlement payment.

17. The settlement payment was allocated equally to each of the two annual

periods contained in the CNI Policy.

18. In accordance with the terms and conditions of the Reinsurance Contract,

CNI advised its reinsurers, including Argonaut, of the APU claim and then of the subsequent

settlement.

19. As of January 2014, Argonaut has failed to pay $306,005.96 due to CNI

under the Reinsurance Contract.

COUNT ONE Breach of Contract



21. Pursuant to Section D of the Reinsurance Contract, "All loss settlements

made by the Company, provided they are within the terms and conditions of the original

policy(ies) and within the terms and conditions of this certificate of reinsurance, shall be binding

on the Reinsurer." Ex. A, at 2.

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22. In accordance with Section D of the Reinsurance Contract, Argonaut is

bound by the ACE Companies' settlement resolving the claims against the underlying CNI

Policy.

23. Pursuant to Section D of the Reinsurance Contract, "the Reinsurer shall

promptly pay its proportion of such loss as set forth in the Declarations." Ex. A, at 2.

24. Notwithstanding receipt of the billings for the settlement made pursuant to

the CNI Policy, Argonaut has failed to pay the amounts due and owing.

25. Argonaut's failure to pay the amounts due and owing is a breach of the

Reinsurance Contract, and is without defense or justification.

COUNT TWO Breach of Duty of Utmost Good Faith and Dealing



27. Argonaut owes CNI a duty of utmost good faith and fair dealing.

28. CNI has provided all information requested by Argonaut and complied

with all of the terms and condition of the Reinsurance Certificates.

29. Argonaut has improperly refused to honor its obligations under the

Reinsurance Contract by not timely paying CNI's outstanding billings.

30. Argonaut's wrongful refusal to honor the obligations of the Reinsurance

Contract is a violation of its obligations.

31. As a direct and proximate cause of Argonaut's conduct, CNI has sustained

and continues to sustain damages, including incurring attorneys' fees and other costs in

connection with this lawsuit, which resulted from Argonaut's breach of its duty of utmost good

faith and fair dealing.

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32. CNI is therefore entitled to judgment against Argonaut for the breach of its

obligations owed to CNI, including Argonaut's breach of its duty of good faith and fair dealing,

and Argonaut is liable for all resulting damages, including attorneys' fees and interest.

Prayer for Relief

WHEREFORE, Ace Property and Casualty Insurance Company respectfully

requests a judgment against Argonaut Insurance Company as follows:

I. judgment for breach of contract in the amount of $306,005.96;

2. compensatory damages for pre and post-judgment interest, attorneys' fees

and costs, as determined by this Court;

3. such other relief as this Court deems just and proper.

Jury Demand

Pursuant to Federal Rule of Civil Procedure 38, Plaintiff requests a trial by jury.

Charles E. Leasure III (P A 85431) Alexander L. Harris (PA 311382) PEPPER HAMIL TON LLP Two Logan Square Eighteenth and Arch Streets Philadelphia, Pa. 19103 t: (2 I 5) 981-4000 f: (215) 981-1750 [email protected] [email protected]

Dated: April 2, 2014 Attorneys for Plaintiff ACE Property and Casualty Insurance Company, jlkla CIGNA Property and Casualty Insurance Company, as successor in interest to Central National Insurance Company of Omaha only to the extent of policies issued by Cravens, Dargen & Company, Pacific Coast and its subsidiaries

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EXHIBIT A


.... , .•. ,._ ... · ..

CE :::ATE OF FACULTATIVE REINSURANCE ISS' . 1·'/

~#~<(if~ HOME OFFICE: 250 MIDDLEFIELD ROAD • MENLO PARK, CALIFORNIA 94025

DECLARATIONS

CEDING COMPANY AND ADDRESS

Central National Insurance Company c/o Crat~, Dargan & Co.

ATTENTION Reinsurance Facilities Corp.

Lehigh Valley Railroad New

DX-608

NAME OF INSURED RENEWAL OF CERTIFICATE NO.

Bethlehem Pennsylvania CITY STATE REPLACES CERTIFICATE NO.

CNS 9-30-87 11-27-73/76 u~29~73/76

---~-·--·-COMPANY POLICY NO. COMPANY POLICY PERIOD REINSURERS CERTIFICATE PERIOD

ITEM 1 TYPE OF.'INSURANCE Personal· Injury, Property Damage, FELA & Bill of Lading

ITEM 2 ITEM 3 ll'EM 4 ITEM 5 POLICY LIMITS AND APPLICATION COMPANY RETENTION REINSURANCE" ACCEPTED BASIS OF ACCEPTANCE

$1,500,000.Ultimate $750,000 P/0 $750,000 P/0 Net Loss XS of $1,500,000.XS .$1,500,000. xs

0 $500,000. Self-insured $500,000. S.I.R. $500,000 S. I.R. Excess of L<Js~

Retention . ..:---·

D Contributing E><cess

"" 0 Non-Concurrenl

Tho Reinsurers Net Premium For This Certificate Shall Be$ _,1:o:Ooe4c:..>•.o:Oc:4c,3'-"'------------- 0 FIXED CHARGE ~ DEPOSIT PREMIUM

payable 1/3 annual

H;li.S PREMIUM SHALL BE ADJUSTED ANNUALLY AT:

RATE ·-----BA_S_E _______ t-E_S_T_IM_A_T_E_D_E_x_Po_s_U_R_E __ REINSURERS ESTIMATED ANN~~-;~~~] Due: 11~29-73:

11-29-74: 11~29~75:

$34,681. $34,681. $34,681.

Minimum Prornium For Reinsurance Period $ _,1~0cc4=0,_4=3_,. ________ ~~- Minimum Premium For Certificate$. _._] Ou.uOe~.OL.~------

Countersigned At ·-~·Menlo Park, California This ___ _:8c:t:.:h::__ ___ Day Of January 19 .!..!!....:.._ __ _

Authorized Signature

UND·3308


f' ' ·,--, ··-.-.-.--· I"•••

e..#:: ;u-:l'uud #nauUffftc4'3 '"xJ/111/UMI/!f HOME OFFICE; 250 MIDDLEFIELD ROAD 1P MENLO PARK, CALIFORNIA 9'1025

{herein called the Reinsurer)

REINSURING AGREEMENTS AND CONDITIONS

In consideration of the payment of tho premium, and subject 10 tho terms, conditions and limits of liability sot forth herein and in the Declarations made a part hereof, the Reinsurer does hereby reinsure the ceding company n<:~med In the Declarations (herein called the Company) in respect of the Company's policy(ies) as follows:

A. The Company warrants to retain for its own nccount, subject to treaty reinsurance if applicable. tho amount of liability specified in Item 3 of the Declarations, unless otherwise declared to the Relnsuror. The liability of the Reinsurer, as specified in Item 4 of the Dectarations, shall follow that of the Company and shall be subject in ell respectS to all the terms and condjtions of the Company's policy except when otherwise specifically provided herein or designated as non-concurrent reinsurance in the Declarations. The Reinsurer's certificate period shall. be as specified in the declarations at 12:01 AM as to both dates at the place specified in the Compuny's policy. The Company shall furnish the Reinsurer with a copy of its policy and all endorsements thereto and agrees to notify the Reinsurer promptly of all changes which in' any manner affect this certificate of roinsurance. "The Company shall make available for inspection, and place et the disposal of the Reinsurer at all reasonable times, all records of the Company relating to this cortiticato of reinsurance or .c·raims in conn¢ction therewith.

8. in no event shall anyone other than the Company or, in the event of the Company's insolvency, its receiver, liquidetor or statutory successor, have any rights under this agreement.

C. The Company shall notify: the Reinsurl3r. promptly of any occurrence which in the Company's estimate of the value of injuries or damages sought, with.out regard to liability, might result in judgment in an amount sufficient to involve this certificate of reinsurance. The Company shall also notify the Reinsurer promptly of any occurrence in respect of which the Company has created a loss reserve equal to or greater than fifty (50) percent of the CompanY's retention Specified in Item 3 of the Decl~rations; or, if this reinsurance applies 'an a contribut· ing excess basis, when notice of claim is received by the Company. While the Reinsurer does not underta'ke tO.iiwestigate Or defOnd claims or suits, it shall n9vertholess have the right and shall be given -i:he opportunity, with tho full cooperation of the Company, to associate counsel <It its own expense and tb join with the Company and its representatives in the defense and contra! of any clairTI,."suit or proceeding involving this certificatG of reinsurance.

D. All loss settlements made by the Company, provided they are within the terms <Jnd c:ondition5 of the original policy(les) and within the terms and .conditions of this certificate of reinsurance, shall be binding on the Reinsurer. Upon receipt of a definitive statemern of loss, the Reinsurer shall promptly pay its Proportion of such Joss as set forth in the Declarations. In addition therpto, the Reinsurer shali paY its proportion of expenses (other than office expenses and payments to any salaried employee) incurred by the ~ompcuw in the investigation and settlement of claims or suits and Its proportion of court costs and interest on any judgement or award, in the ratio that the Reinsurer's loss payment beers. to the Company's gross loss payment. If there is no toss ·payment, t~e Reinsurer shall pay its proportion of such expenses only in respect of ·business accepted on a contributing excess basis and then only in the percentage stated in Item 4 of the declarations in the first layer of participation.

E. Definitions

As used in this Certificate the following terms shall h.1Va the meaning set opposite each. , Excess of Loss · The limit(s) of l·iabitity of 'the Reinsurer, aS "S1:<Jted in item 4 of the Declatetions, applieS{y) only to that poftion of loSs settle-

ment{s), in excess of the applicable retention of the Company a"> stutad in' item 3 of 'th'a' DCcJ'Iiratiorls. · · · · · ··· Contributing Excess ·· 1ho· Company's pcilicy applieS in excess of other valid insurance, reinsurance or a self-insured retention and the limit of liability of the Relnsurcir aPplies proportionally to 811 loss settlements in the percentage(s) set forth In Item 4 of the Declarations. Non-Concflrrent · The reinsurance provided does not apply to any hazard~ ~r. rJs.k~ of loss-C!r d!!rt:~.SQe,cc_:>yered under the Company's policy other than those specifically set forth in the Declarations. The r1'!tention of the Company and liDbilitv ot" tho Reinsurer shall be determined as though the Company's policy oppliod only .to .. the hazardS or risks .of . loss or damage specifically described in the Declarations.

F. The. Reinsurer will bG paid or credited by the Company with-itS. proportion of salvage, that is, reimbursement obtained or recovery made by the Company, lass all expenses paid by the Company in making such recovery. If the reinsurance· afforded by this Certificate is·on the·excess · of loss basis, salvage shall be applied in the inverse order il which liability attaches. ·

G. The Company will be liable for all taxes on premiums ceded to the Re!nsurer-.~'":lder th.is certifica1e of r~!.nsurance. '

H. In the event of the insolvency of the Company, the reinsurance provided by this certificate shall be payable by the 'Reinsurer on the basis of the liability of the Company under the policy(ies) reinsured, without di.minution because of such insolvency, directly to the Company or its. receiver, liquidator, or statutorY succeSsOr. The Reinsurer shall be given written notice of the pendency of each claim against the Company on the policy{ies') reinsured hereunder Within ·a reasonablE: time after such claim is filed· in the insolvency proce8dings. The Reinsurer shall have the right to Investigate each such claim and interpose, at its own expense, in the proceeding where ~uch claim is to he adjudicated, any defenses which it may doom available to the Company or its receiver, liquidator or statutory successor. Tho expense thus incu_rred by the Reinsurer shall be chargeable, subject to court approval, against the in· solvent Company as part of the experise of liquidation to the extent of a .Proportionate share _of the benefit which may accrue to the Company solely as the result of the defense undertaken by the Reinsurer.

I. The Reinsurer may o1fset any balance(s), whether o"n account of premiums, commissions, claims, losses, adjustment expense: salvage or any other amount(s) due from one party to the" other under this certificate of reinsurance or under any other agreement heretofore or herouftcr entered into betWeen the Company and the Reinsurer, whelher actin11 as assuming reinsurer or as ceding company.

J. Should the Company's policy be cancelled, this certificate shalt terminate automatically at the samo time and date. This certificate may <lise be cancelled by the company or by the reinsurer upon not less than thirty days prior written notice, one to the other, stating when thereafter the reinsurance afforded hereby shall terminate, Proof of mailing shall be deemed proof of notice and calculotion of the earned pmmium shall follow the company's calculation in the use of short rate or pro rata tables.

K. The terms of this certificate of reinsurance shall not be waived or changed except by endorsement issued to form a part hereof, executed b~ a duly authorized representative of the Reinsurer.

IN WITNESS WHEREOF •. ARGONAUT INSURANCE COMPANY has caused this. celrtifica"te Ot reinsurance to be signed by. its President ·and Secretary at Menlo Park; California, but the same shall not:be binding upon the Reinsurer unless countersigned by an authorized rapresentative of the Reinsurer,

15. fl ?f~uw;_ PJ.•esident f


EXHIBITB


SPECIAL COVERAGE OAIL Y REPORT ,, ' .. - -- . vf'l.) ~ .. -~

The Centra/ !Var,omJ Insurance Company of Dmar,d CRAVENS, \3<$ft1:6'\bl §:?COMPANY

1A~70N-DYRNE-BRUNER

NEW Renewal of Numbc1 C'?

:z: '.CC!·~ lH~OADWf,Y en ~T. LOUIS, MO. U)

f • , t">

.' ~."" ! ..... (,J_'.

0 I

C:• DECLARATIOHS Item l. Named Insured and P. 0. Address (No .. St:cet,l'own, cOunty, Swtc!

Item 2.

JOHN !7. l\ASE AND !UlREF;T C. 1-1\LLl~·if..N, 'ERUSTEL$ 01~ TBX PROPER'!"'.: OF LEHIGH '/ALLEY iU':..ILl\OAf: CillJ:PAf\~, DEBTOH.,

Policy Pen ad: From NOVEHBER 29tt:, 1973 To NOVEMBEr, 29th, 1970 12:01 A.M .. standard lime at the address of the named Insured as stated herein.

-..: I I · ,... .. ( fll

J!... "'~ C I

[/ (,1 / '; '' f\j... ."')• I : ,~ l(j

\ f· I\ ,_

Item 3. The location of the premises and the applicable limits of liability are specified in the Coverage Form(s) attached to and forming part or this policy.

PREMIUM Numbers ol forms and endorsements attached to the ptJI icy:

$ 89,500.00 ANNUALLY, PER FORM, GU 9157 AND END. #1, ift2 c• #3.

·~ $. 89,500.00 Total Premium

Item 4. If the Policy Period is more than one year and the premium is to be paid in installments, premium installments of rente' below)

$89,500.00 each are payable on the effective date of this policy and the first and second anniversaries thereof.

• Items. During the last five years the Insured has not sustained or received indemnity for any loss of the kind covered hereby, unless other· wise stated herein:• rente' b. low! ON FILE '1-.'ITH COMPANY

Item 6. During the last five years no insurer has canceled insurance issued to the Insured against loss covered hereby, unless otherwise stated herein:

Item 7. No other insurance issued to the Insured is in force which covers loss covered hereby, unless otherwise stated herein:• (enre' below!

Item 8. By acceptance of this policy the Insured agrees that any prior policy herein designated is canceled as of the time this policy be· comes effective:

*Absenc.e of em entry means .. No Exception~". CRAVENS , DARGAN & COHPANY

Countersigned, LOS ANGELES, CALIFORNIA BY----------~--~----------------Authori':l:ed R-eprest~nfatlw

LU·l4l l-73 CC (2M 1·73)

'· '

r


(

SCHEI)ULE

HEREON:

Item 1. The Name of the Assured is:

John F. Nash and Robert C. Haldeman, Trustees of the Property of Lehigh Valley Railroad Company, Debtor

Item 2. The Address of the Assured is: 415 Brighton Street Bethlehem, Pa. 18015

Item 3. The Assured is a Corporation

Item 4. The Policy Period Shall be 36 Months, Beginning on the 29th day of November 1973 at 12:01 A.M. and Ending on the 29th day of November 1976 at 12:01 A.M. Standard Time, at the Address of the Assured as stated herein.

Item 5. Limit of Liability - See Forms Attached, Paragraph 4 (Conditions)

Item 6.

$1,500,000. Ultimate net loss in respect of each ·occurrence for PL, PD, FELA and Bill of Lading Liability excess of

$ 500,000. Ultimate net loss in respect of each occurrence for PL, PD, FELA and Bill of Lading Liability (Self-In~.ured Retention}

Computation of Premiu:n:

Estimated Rate per $1,000. Preie~ht of Gross Freight R-2 ;.;e:lue Reve:1ue

$55,000,000. $1.618

!·fi:-1imun Annual Premium: $75 ~ 300.

~

Annual Deposit Premium

$89,500.

:r.te;n 7. No-:: ice of Occurrence as Required by Paragraph 6 in Attached Forms.

Law-::on-Byrne-Rruner Insurance Agency Company Ten Broadway St. L~uis, Missouri 63102

1\ t ;:;:.chod to and Forni ng


''ULTH-iATE NET LOSS" - MK 3 ALL DIRECT AND CONSEQUENTIA~ ·,~,AGES 3ECAUSE OF P.':RSONAl. INJURY Or\ PROPT:1\i'IIJI\:1PGE, FOR WHICH ThE ASSURED IS Ll!l.BLc t:ITHER THROUGH ADJUDICATION, COMPROMISE CR SETTLEI\ENT AFTER MAKING PRO?ER DEDUCiiONS FOR ALL RECOVERIES AND S.~LVA~ES

AND SI-'AL L ALSO II~CLUOE HOSPITAL, MEDICAL, AND FUNERAL CH.l\RGES ·"NO LAW COSTS, PRO\ I UMS ON 1\TTACH~\ENTS OR APPEAL BON!)S, INTEREST, EXPENSE FOR DOCTORS,. LITIGATION, SETTLEM£NT, ADJUSTMENT MiD INVESTIGATIOo'l OF CLAII\S AND SUITS WHICH ARE PAID AS>~ CONSEQUENCE OF AI<Y OCCUi<RENCE COVERED HEREU~DER, EXCLUDING ONLY THE SALARIES OF THE ASSURED'S PERMANENT EMPLOYEES.

~AUTOMQBJ.L~ - MEANS A LAND MOTO:l VEHICLE, TRAILER OR SEM 1-TRAILER.

THIS POLICY DOES NOT APPLY:

I) UNDER COVERAGE B, TO INJURY TO OR DESTRUCTION OF (A) PROPERTY OWNED OR OCCUPIED BY DR RENTED TO THE ASSURED, OR (B) PROPERTY IN THE CARE, CUSTO~Y OR CONTROL OF THE ASSURED OR PROPERTY 1<S TO WHICH THE ,<;SSURED FOR ANY PURPOSE IS EXERCISING PHYSICAL CONTROL, OR (C) PROPERTY USED BY THE ASSURED.

2) TO PERSONAL INJURY OR PROPERTY DAM!l.GE AR IS I tlG OUT OF THE OWNERSHIP, ~~IWiEl:A:iCE, OPEf;.l'lTivN OR USi'. OF (A) ANY AIRCRAFT OR (B) ANY AUTOMOBILE, EXCEPT WHILE BEING OPERATED ON RAILS, OR I.'ATERCRAFT; PROVIDED, THIS EXCLUSION SHALL NOT APPLY AS RESPECTS LIABILITY OF THE ASSURED TO ITS EMPLOYElS WHETf:ER AT COM:·\ON LAW Or\ OTHER'.<ISE;

3) TO ANY CONTRACTUAL 08LI GAll ON RELATING TO EfiPLOYEE BENEFITS Oi\ FOR HH I CH THE ASSURED H;1S ASSIJI·',ED l lAB Ill TY Ul:OER ANY CWTRACT 0~ ;,r;i\EEM~NT,

IF SUC~i n;JURY OR i'i\cPi':RTY ~.~l·:i1GE OCCUi\RED OR COI1M£11GEil ?R I OR TO Hie TI~E SliCH CONTRprT nR DGR~FHfNT RFCAMF FFFFCT!VF.

CONDIT I ON$ - ·-

THE TE~:1 "THE ASSURED" IS USED SEVERI\LLY AND NOT COLLECTIVELY, 8\JT THE INCLUSION HER ::IN OF MORE HAN ONE ASSURED SHALL ~lOT OPERATE TO I NCR EASE THE LIHIT~ OF UNDERwRITERS' LIABILITY.

NOT I C[ TO Arf{ J\G~tlT GR KNC>i!.ECGE POSSESSED BY AtlY AGENT OR BY Aii'i OTHER PERS0N SH:1Ll I:OT /\FFECT A \;.!'liVER OR A CHP,;·•GE IN A~.;y PART OF THIS POLICY 0;:{ ESTO: ·r~E UNDt.r.~.:R: TERS FGi:/·1 ·.:~SS:NT l .~:G t:·.~·;'{ S l ern Uf·1C1::R THE TERHS OF TH:S 'OL!CY, :WP. SH:·,I_L THE TE~~.~~s Or T~~IS i'!']LJCY G.E 'r:r\i\':0 0~-i CH.:~~~GED,

EXLO:PT bY [t;OCP.SE:·'.ENT ISSU~D TO FORN A F:.RT OF THIS POLiCY, SIGNt'D SY A DULY A!Jl"P.CR IZ£0 i{E?RESENTAT I VC OF THE Ui~Dr.rt·~.,'i=l.l TEr:l.S.

B. lNSPECTtON ~t:O AUJIT ~ -·-·- ---·-

THE UF~E.""t\..'RITERS SH.qll BE PEr~i·11lTED f\1 .C.LL f\!:ASOi~.~.SLE T!KES CL'I{f:·~G THE co;n 1 ~~:.J;!.:;~;: OF TH 1 ::i rc:... 1 CY ro Jl;Si-'ECT Tt<.:: .CiSSURED nt:·:1 1 SE.S, F'L.Mt~rs, ,vJ';C:-JI!;E;;~y PJlD APPLl.C1~CES USED lN CCNHECTIO:~ \-ili~rl TH':: f:1SSUF-::.D 'S ;·:~,~-DE,

oUSt:lESS vR WOrtK, AtW TO EX,O,MIIjE DURI:iG THE CCNTINt;.:;:iCE Of THIS I·'OLICY OR WITHIN O:iE YEM, AFTER THE Flt;riL TERlli!:ATtON OF THIS PGLICY THE ASSURED'$ BOOKS f:rfD RECORDS I~;SQFAR AS tr.~·r RELATE TO THE SASJS OF THE PRH'.I UH COMPUTATION OF THIS POLICY.


THE UtlOER\IRITERS AGREE WITH THE ASSURED, IN CONSIDERATION OF THE PAYMENT OF THE PREMIUM AND SUBJECT TO THE LIMITS OF LIABILITY, EXCLUSIONS, CONDITIONS, AND OTHER TERMS OF THIS POLICY:

INSURING AGREEHEtiTS -I. COVERAGE A -· PERSONAL INJURY LIAB ILl TY

TO INDEMNIFY THE ASSURED FOR ALL SUMS WHICH THE ASSURED SJ-'.ALL BECOHE LEGALLY OBLIGATED TO PAY, At:D SHALL PAY, AS DAI'AGES At;D EXPENSES MORE FULLY DEFINED BY THE TER:1 "UL T I l'ii<TE NET LOSS" BECAUSE OF PEC:SONAL INJURY TO ANY PERSON OR PERSONS, INCLUDING Et'.PLOYEES OF THE ASSURED CAUSED BY OR GROWING OUT OF EACH OCCURi\ENCE A:JD ARIS IKG OUT OF OR DUE WHO.LLY OR IN PA.RT TO THE CONDUCT OF THE ASSURED'S BUSINESS.

COVERAGE B -- PROPERTY OAI1AGE LIABI LlTY

TO I tlGEMN I FY THE ASSUREP. FO~ ALL SUMS \IH I CH THE ASSURED SHALL BEC0:1E LEGALLY OBLIGI·\TEO TO PAY, Ai!D SHALL PAY, AS DAMAGES AND EXPENSES MORE FULLY DEFINED BY THE TERM "ULTI11ATE NET LOSS" BECAUSE OF INJURY TO OR DESTRUCTION OF PROPERTY, INCLUDING THE LOSS OF USE THEREOF, CAUSED BY OR GROWING OUT OF EACH OCCURRENCE AND ARISING OUT OF OR DUE WHOLLY OR IN PART TO THE CONDUCT OF THE ASSURED'S ~US I NESS.

I I. DEFINITION OF ASSURED

>iiTi-i RES?ECT TO "iHE iNSi.JPvl.NGE UNOtK ~UVc"AGE> A AND B, THE UNQUALIFIED WORD "ASSURED" INCLUDES ANY EXECUTIVE OFFICER, EMPLOYEE, DIRECTOR OR STOCKHOLDER THEREOF WHILE ACTING WITHIN THE SCOPE OF HIS DUTIES AS SUCH.

Ill. POLICY PERIOD, TERRITORY

THE COVERI'.GE P,FFCRD£0 BY THIS POll CY APPLIES ONLY TO OCCURRENCES ~/HI CH OCCUR DUR lr!G THE POL I C'f PER I 00 SET FORTH IN THE S CHE OULE TO THE POll CY, '..1 ITH Hl THE UiiiTCO STATES OF /;MERICA, ITS TERRITORIES OR POSS£$SIONS OR CAI'ADA.

IV. DEFINITIONS

HHEN USED Ill REFEP.ENCE TO THIS POLICY.

:_:I'E><ov.G1·.':_ _Jr<.'UP.:t.: - ME.qi•!S, BOO I LY INJURY, MENTAL INJURY, MENTAL ANGUISH, SHOCK, SiC.Li_S:;, f;!S"·'''~;:, DI5A3lLITY, INCLUD!f;G DEATH AT ANY Til-lE RESULTING THEREFRG~i FALSE N:RESI, FALSE lt1i'EISONHENT, YROi>SFUL ENTRY OR EVICTION, DETENTION AND ' I'),L!ClOL; ::.· .. ,.cJCTIOil, uiSCRi~lllii\TI·Jti (r.XCEPT <!HERE IIISURiiNCE FOR SUCH OCCURREI!CES IS PROHi51YEiJ LY LAli), LIBEL, SLMWER, DEFA11ATION OF CHM1.ACTER OR HIVt~S iON OF FR!V.:J.CY, hLiHJLif.,T!O~J Of~ RIDICULE.

"r;!~_P.§RTY f;'\i·'!lGf" - I'.EAiiS r'MYSICI\L Vfii·<AGE TO OR DESTRUCTION OR LOSS OF T;";GIBLE f'IW·'<:RT'/, liiCUJDING Tii:O LOSS OF USE TH~REOF AND ALL DIRECT AND COilSEQ.UEIHIAL LOSS RESULT !NG THEREFR01'.. ·

"OCCU?.RENCE" - IIEAIIS AN ACCIDENT OR ONE HAPPENING OR A CO tiT !NUOUS OR REPEATED -EXPOS~OS 11·11 LAR CONDITIONS.


3) ASSIGNMENT

,. ' (

ASSIGNMENT OF INTEREST UNDER THIS POLICY SHALL NOT BIND THE UNDERWRITERS UNTIL THEIR CONSENT IS ENDORSED HEREON; IF, HOWEVER, THE ASSURED SHALL DIE, THlS POLICY SHALL COVER THE.ASSURED'S LEGAL REPRESENTATIVE AS ASSURED, PROVIDED THAT NOTICE OF CPNCELLATION ADDRESSED TO THE ASSURED SHO\IN IN THE SCHEDULE AND WilLED TO THE 1-'DDRESS SHOWN IN THIS POLICY SHALL BE SUFFICIENT NOTICE TO EFFECT CANCELLATION OF THIS POLICY.

4) LIMIT OF LlkoiLITY

THE UNDERWRITERS SHALL BE L !ABLE FOR THE UL T I M.l\TE NET LOSS AS DEF I tiED HEREIN FOR A SINGLE LIMIT OF LIABILITY OF $1 ,5CO,OOD FOR EACH OCCURRENCE IN EXCESS OF A SELF-INSURED RETENTIO.~ OF $500,000 FOR EACH OCCURRENCE. IT IS UNDERSTOOD THAT THE LIMIT OF THIS POLICY REW\INS UNALTERED AtW THERE IS NO LIMIT TO THE NUMBER OF OCCURRENCES FOR WHICH CLAIMS ~AY BE Mil. DE HEREU~!OE'R PROV I 0 I NG SUCH OCCURRENCES OCCUR OUR I NG THE TERM OF THIS POLl CY. THE FIRST $500,000 ULT 11'11\TE NET LOSS PJ\Y BE INSURED OR NOT. IF THE ASSURED CARRIES INSURANCE UNDERLYING THE COVERAGE PROVIDED BY THIS POLICY IN THE AMOUNT OF$500,000 OR HORE, THIS POLICY SHALL APPLY It: EXCESS OF SUCH AMOUNT. NOTHING HEREIN SHP.LL 6E CONSTRUED TO M.l\KE THIS POLl CY SUBJECT TO THE TER~\S, CONDITIONS AND Ll M ITATI ONS OF SUCH UNDERLYING INSUi\ANCE.

5) OTHER I NSURAi~CE

IF THE ASSUREU KAS OTHER INSURANCE AGAINST A LOSS COVERED BY THIS POLICY, THE U:-JOER',;fl.iTERS Si"-~LL NOT i3E LIABLE UNOER THIS POLICY FOR A GREATER PROPORTIO!i OF SUCH LOSS THAN I ht: APPLICABLE L 1111 T OF LiAB l L i TY STA7ED A80Vf. BEARS TO THE TOTAL APPLICABLE L I ~liT OF LJAB ILl TY OF ALL VAL I 0 AND COLLECTIBLE INSURANCE AGAINST SUCH LOSS.

6) NOTICE OF CLAIIi OR SUIT

WHEilEVEfl THE ASSURED 1-;.t:\S INFORMATION· FROM WHICH THE ASSURED NAY REASONABLY COHCLUOE THAT AN OCCURRENCE COVERED HEREUNDER INVOLVES i)Af\AGE WHICH, IN THE EVENT THE ASSURED SHOULD BE HELD LIABLE, IS LIKELY TO INVOLVE THIS POLICY, NOTICE SH~\Ll 8E SENT TO LAWTON 6YP.NE BRUNER I NSURA~CE AGENCY COI\PP.NY, TEN BROAWAY, ST LOUIS, HI SSOUR I 631 02, fiS SGQ~l-[,S fRACrt CABLE. Pf\OV IDEO TH!H Fl\ I UJRE TO NOTIFY THE UNOERWi< ITERS OF SUCH .OCCURReNCE WHICH fiT THE TIME OF ITS li'\PPt:IIII\G 010 NOT A?PEAR TO IHVOLVE THIS POL.ICY, BUi I<HICH AT A LATER Oi-\TE

WOULD APPEAR TO GIVE RISE TO CLAIMS HEREUNDER, SHALL ~WT PREJUDICE SUCH CLAII1S.

IN THE EVENT OF ANY OCCU~REHCE LIKELY TO I~VOLVE THIS POLICY, NO LAV COSTS Slt,LL BE l~~CURRED WtT;·iOUT THE CO:lSENT OF THE UHCER~RlTERS OR l'HEIR REPRESENTATIVES. AFTER SUCH OCCiJRRdh:[, THC MSSUK:·.o tiAY PRJCC.Ef· ~~~;·;ECif.\l'fL'i TO !·:[G:)Tl;;TE ~,ti'f CLri!r'~5

fO~ PERSONAl. INJURY OR P~OPERIY o;;t-iAGt. ~liTH A VI'EH TO .L.~?,t\~~Gfi'\Ei·IT OF 3ETTLE!~ENTS,

AND {\T Tf.;E EARLIEST F'RACTICi\,l MC;·iE.NT ?\~•liSE THE U~-iL:t.Kt-.'~1-ft.R::i· OF THC:: ~1 CCL:-~;1E~(i:,

1Ht:. A;JJI..;STi·',[~i/5 SO f.~,;:; J'..;.~Ci::.., ,t;:;c COO?E~.r!TE \.'ITH THE Vi~D:;..~ ... :1!Tt.qs lt! F'~!;nH::R

SETTLEME!;TS OR LEG,:,L PROCEEC I NGo. THE ~\SSU~f.O SH!ll.l. I,CT \.():··\?><~1', I.'.E 0R Pf.:Y Ali'! CLAIM~ ;/HICri 1\1\Y AFFeCT THE UNllEI<J.iRITER WITHOUT THE LMTTti<'S COt<SENT ANO IN THE CASE OF L ITI GAT I ON IT SHALL BE COilOUCTEC I fl COOPERATION \.liTH THE UNDER\JR I TERS .

. '


( IN THE EVENT THAT THE ASSURED ELECTS NOT TO APPEAL AGAINST A JUDGMENT GREATER TPAN THE RETENTION OF THS ASSURED, THE UNDERWR ITE~S NAY ELECT TO CONDUCT SUCH APPEAL. THE UNDERWRITERS SHALL BE LIABLE IN ADDITION TO THE APPLICABLE LIMIT OF LIABILITY. FOR ALL COSTS, TAXES, EXPENSES INCURRED AND ltiTEREST ON JUDGMENTS ATTRIBUTABLE TO SUCH APPEAL.

8) ~U~G8Tl0~

IT IS AGREED THAT THE UNDER~/RITERS BECAUSE OF THE NATURE OF THIS INSURANCE CANNOT BE EXCLUSIVELY SUBROGATED TO THE ASSUf:ED'S RIGHT OF RECOVERY AGAINST ANY PERSON OR OT~:ER EiliiTY. IT IS, THEREFO:-\E, u::DERSTOOD AND AGREED THAT IN CASE OF ANY PAYMENT HEREUNDER, THE UNDERWRITERS WILL ACT IN CONCERT WITH ALL OTHER INTERESTS (INCLUDING THE ASSURED) CONCERNED, IN THE EXERCl~E Of SUCH RIGHTS OF RECOVERY. THE APPORTIONING OF ANY A.'IOUNTS l'lflCH MAY BE SO RECOVERED SHALL FOLLOW THE PRINCIPLE THAT. ANY INTERESTS (INCLUDING THE ASSURED) THAT SHALL HAVE PAID AN AMOUNT OVER AND P.BOVE ANY PAYMENT HEREUNDER. SHALL FIRST BE REIMBURSED U? TO THE AMOUNT PAlO BY THEI1; THE UNOER\iRITERS Jl.RE THEN TO BE RE"IHBURSEO OUT OF ANY BALANCE THEN REMAINING UP TO THE AMOUNT PAID HEREUNDER, LASTLY, THE INTERESTS (INCLUDING THE ASSURED) OF WHEN THIS COVERAGE IS IN EXCESS ARE ENTITLED TO ·cLAIM THE RESIDUE, IF ANY. THE EXPENSES NECESSARY TO THE . RECOVERY OF ANY SUCH AMOUNTS SHALL BE APPORTIONED BETWEEN THE INTERESTS (INCLUDING THE ASSURED) CONCERNED, IN THE RATIO OF THEIR RESPECTIVE RECOVERIES AS FINALLY SETTLED.

9) ACT !QN AGA I NSI. THE UNDERWR ITE.!3~

IT IS AGREED THAT IN THE EVENT OF BANKRUPTCY OR INSOLVENCY OF THE t1SSURED, THE UNDERWRITERS Sf'ALL NOT BE RELIEVED OF THE PAYNENT OF SUCH INOE/·INITY AS WOULD MAVE BEEN PAYABLE EUT FOR SUCH BANKRUPTCY OR INSOLVENCY.

iO. LOSS ?AYABLE

LIABI Ll TY UNDER THIS POLICY WITH RESPECT TO ANY OCCURRENCE SHALL NOT ATTACH UNLESS AND UtjTJ L THE ASSURED SHALL lt~VE PAID THE AMOUNT OF THE UNDERLYING RETE NT I ON FOR SUCH OCCURRENCE. THE ASSURED SHALL MAKE A DEFINITE CLAIM FOR ANY LOSS FOR WHICH THE UNDER-1-/RITERS rM BE LIABLE UNDER THE POLICY WITHIN T>iELVE ( 12) MONTHS AFTER THE ASSUREO SH/';LL HAVE PAID AN .t;HGIJIIT b;:: ULTIMATE NET LOSS IN EXCESS OF THE AMOUNT BORNE BY THE ASSURED OR AFTER iHE ASSURED'S LIABILITY SHALL HAVE BEEN FIXED AND RENDERED CERTAIN EITHER BY FINAL JUDGMWT AGAINST THE ASSURED AFTER ACTUAL TRIAL OR BY WRITTEN AGREEMENT 0~ THE ASSURED, THC: CLAiMAnT, 1\!10 THE UNDERWRITERS. IF ANY SUBSEQUENT P1WMENTS SH.4LL BE M!\DE BY THE ASSURED ON t\CCOUNT OF TH~ SANE OL.;URRENCE, ADDITIONAL -CUIIMS SHALL 8E HI\ DE S 11-\1 LARLY FRON TlaE TO TIME. SUCH LOSSES SPALL BE DUE AND PAYABLE >iiTHIN THIRTY (30) llAYS AI'TER THEY ARE RESPECTIVELY CLAiflED AND PROVEN IN CONFORMITY WITH THIS POLICY.


flhe- A1;a:!unr. ••• ..'!·!: nerd bt> comttlrte-d O'llY Wf1"n Hus ~:n!IO!'!>t!Tle:l: !S 1s~uec ~-- .equ~n! to p:cparation o~ the polity.)

UA B ILITY-/; U TO MOBILE GU91&7 CE.d. HiE~ A 0009-G 320

NUCLLAR ENERGY LIAeiLIT\' EXCLUSION ENDORSEMENT {Broad Form)

r---:::lh:-:i-s -,-,~.,-,-rs-,-m-.e-n•:-, -m-o-:d-:rfi:-es--,th:-.,-,.-, ,-"-,-,-ns-o:-1 cl:he pc-!icy relating tc ~U. AUTOMOBILE li~DIUTY, GENERAl

LIAeiLITY ANO MEDICAl PAYf.\ENTS IIISURANC£ OTHER THAll FAMILY AUTOMOBILE. SPECIAl PACKAGE ~UTOMDBIL[, COMPREHENSIVE PERSONAL AND FARMEP.'S COM?REHEHSIVE PERSONAl. INSURANCE.

This enc'orse;ncet. effective NOVD·iBf.R 29th, 1973 ill.Cl A.M .. wndaro \!me,

: terms a part of policy No. CNS 9-30-87

issued to JOHN F, I<ASH AliD 'P.ODERT C. Ht.I.DEKAI<, TRUSTEES OF TliE PROPERTY OF LEHIGH ~AT.LFf RAILROAD COMPMfi, DEBTOR.

by CENTRAL llATIONAL mSUP.A.NCE COMPANY OF OMAHA

CRAVENS, DARGAN & COMPANY

· · · · ... · .. · · · ...... · ··· .......... · ........ "AUthor ri~·~· R~;;re·~tiltat;~e· ......................................... ··

It is a,lreed 'that:

I, The policy does not apply, A. Under any liabilily Coverage, to bDdily injury or property damage

!ll wrth respect to whio::h an insured under the pclicy is also an insured under a nucleur energy liability policy issued by Nuclear Energy liability Insurance Association. Mu!ual Alomic Energy Liability Underv:riters or Nucfeer Insurance Association of Canada, or would he an insured under any such policy but for its termination upon exhaustion of its limit of liability; or

(2) resulting from the hj;zzrdous properties of nuelear materia! and with respect to which (a) any person or or~ani1a1ion is required to maintain financial protection pursuant to the Atomic Energy Act of 1954. or any law amendatory thereof, or {bl the msured is, or had this policy not been issued would be. entiticd to indemnity from the United States of America, or any agency thereof, under any agreement entered into by the United Stales of America, or any agency thereof, with any penon or organi1ation.

B. Under any Medical Payments Coverage, or under any Supplementary Peyments provision relating to first aid, to expenses incurred with respect to bcCi!y i!1jury r.f!sul!l:'l£: fro~ the ht~z.arrl:;~us prPpcrth:::; of nu!;/::ar materi:!l and arlsin~"" cut Df the operation of a nuclear facility t~· ,;~::!' pe~sc-n Q!" nr:;:~'"!]!?!!!"n. "'

C. Under any Liability Coverage, to bodily injury e>r property damage resuiting from 1he hazardous properties of nuclear miiterial, if m the n~clear material lal.is at any nuclear facility owned by, or operated by or on behalf of, an insured (II (b) has been discharged or df;:;.

pers~U therefrom; · (i) the tJt:::le~r m<;teriiil is contained ir. speo1 fuel or waste at .any timtl possessed, handlt-d, used, processed, s1ored, transprJrted or dispos;;:d o:

by or on behalf of ar. insured; or (3) the b:;d11y fnjt~ry •1f p~operty d2mag:e arises out of the furnishing by an insureD of services, materials, parts or equipment in connection with

the planning, construction, mainten2nce, operation or use of any nuclear 1acility, but if such facility is located within the United States 01 Amcticr~, its 1erritories or possessions or Canada, this exclusion (3} applies cmly to property d.:~ mage to such nuclear facility and any property thereat.

II. As lJSed in ~his endorsement~ .. hazarrlous prapertie:;" inc!ud~ radioactive, toxic or explosive properties; "nutlea: materia!'' means source m.a~eria:, special nuclear materia! or byproduct material; "sn1.1rce ma!~rial'', "special nuclear materl:~l", and "byprlJduct material".have th'! meaning!~ given them in the Atomic Energy Att of 1954 or in any Ja;·,· atnen\latory thereof; "spent fuel" means ;,ny fuel element or fuel compo!!ent. solid or liquid, which has been u~ed or exposed to radiation in a nuclear reactor; ''ll:iistr:'' m~ar.s zn:i \'tasle rrr<Herial m containing l!ypmdutt material anC: (2) resulting fror.1 the operation by any person or organization of any nuclear f.~cility inc!uGed v;ithin the def:ni!ion of nuclear facility under pcragraph (al or {b) theteof; "nu::lear f~::ility" means

{a) <:n; nt!clear re~t:tor, lbi any equioment or de\·ice designed or used for flJ separating the isotopes of uranium or plutonium, (2) processing or utilizing spent fuel, or {3:

har.diing, processing or packaging waste, {c) a:~:: equipmer:t or tle1J1Ce used for the proct!ssing, fabricating or a!loying of special nuclea; material if at aily time the tota~ amo:Ji!f of such

rr.P.tS:rizl in the cu!tody of the insureD at the premises where such equipment or device is located cGnsists of or contains more than 25 grams of plutonium or ur.anitm: 233 or .any combin.,ti<HI thereof, or more than 250 gr2ms of uranium 235,

(d) any stru::1ure, baslfl, ercavation, !)remises or pl2ce preparec! or used for the storage or disposal of waste, l'l11d ir.clu.;les the site on whic~ any of the foregoing is located, a!l operations conducted on such site and aU premises l!sed fnr such operations; ''nu.ch~2r reactor" means any apparatus designed or used to sustain nuclear fission in a self-supporting .chain reaction or to con!ain a critical ma:;s of fi~siom:b!e material; . "property d"!maz;e" inc!l!d.-:s all fo~ms of radloa~tive contamination or property . .... .....

[LA~9fiEi.:rl~t1 ......... , .....


EliDORSEMENT No. 1 - Additional Insureds

Central Railro;o.d of New Jersev - It is understood and agreed that in consideration of premium charged, coverage is extended to include approximately 100 miles of additional trackage previously operated by CNJ which tbe assured has received ICC approval for operating rights. The CNJ is an additional insured a.s respec'ts these opnrations.

Ironton Railroad Companv - It is understood and agreed that the Ironton Railroad Company is inclt\ded as an additional insured as respects the lease dated January 1, 1950 between the Ironton Rail roild Compa.ny and the Lehigh Valley Rail road Company.

~lest Pittston-Exeter Railro"d Comna~ - It is agreed that this policy is extended to include the West Pittston-Exeter Railroad Company while it is being operated by the Lehigh Valley Railroad Company.

All other terms or1d conditions r.~mainlng unc::honged

Attached to and forming part of __ .._P ... oul_j..,r..,'"-'-N"c..'''-'"'"'h-"?=..r __ cC!:=lS:....::9c..-..:3c::O_-c::3.:..7 ________________ _

d Ct?ntra.] Nation?.l !nS1.lr.arrr;e Co!npan" of Omaha------ ---------

EFFECTIVE __ _,N-"o"'v=e"'m"'b'-'e~r..._-"2'-'9'-'-_1,_9"-'-7~3'------------

Insured .John fi". Nash and Robert C. Halr1>?nan. of Lehigh Valley Railroad Co., Debtor

Trustees of the Prope::ty CRAVENS, DARGAN & COHPANY

BY----------------~--------------------------

•


....

(

PART II- .EXCLUSION

(CONTAMINATION OR POLLUTION)

IT Is· HEREBY UNDERSTOOD AND AGREED THAT, EXCEPT INSOFAR AS COVERAGE IS AVAILABLE TO THE ASSURED IN THE UNDERLYING INSURANCES SET OUT IN THE ATTACHED SCHEDULE, THIS POLICY SHALL NOT APPLY TO:

PERSONAL INJURY OR PROPERTY DAMAGE ARISING OUT OF THE DISCHARGE, DISPEP.SAL, RELEASE OR ESCAPE OF SMOKE, VAPORS, SOOT, FUMES, ACIDS. ALKALIS, TOXIC CHEMICALS, LIQUIDS OR GAS.-,;s, w_-,STE MATERIALS OR OT:E-<:ER IRRITANTS, CONTAMINANTS OR POLLUTANTS I1'rTO OR UPON LAND, THE ATMOSPHERE OR ANY WA IERCOURSE OR BODY OF WATER.

Nc1h111g h.:.-r-e-in :on~ained :;htJII very, (I boar, woivt: or ~x:end on)' of tne term~, reprf!l$ento:ion:o_, c::mditions cr o~re~T"'!!mt'l of the po

ether than as abc-vc st'"r~d.

To i:.o al!achod to and formi,,g c port of Policy No •............. t?.'~ ... ~.~-~?.::~.? ............................ of tho ......•............................•......•.................

Cl':!lTlt\1. NATWl1LJ.. INSURMlCi.': <-'OMPtJ"' OF O>l>\HA ·········· .................................. ···············-------··-··········································-·························-···········-···························-···················--······················· ... . . . J~~ K,•_.NAS,l! t-1!0,.,~0~E~ C. ~L¥,3;~N(;oB~n.r:E~~toft_~-

l•su~a 'o; ......... :p.,,o.P.E ... l .... oE ... u.HI.~li .. i!A:L!.EY ... l\.h!. ......................... c.?Jvzm;--;--'DARG&'f'&'"CC}lPANT ........................................... . s~.::t,.,n Nc· • ............ :......... u.--."'"t.")..t-:"'~~ ""9tl• , 9..,3 ('.:,.',....,•no •"',., ! .. ~{-'·•' J.>k\1~:...:),,.,;\.l ., ... J ... ~o-.~ ... -~"-··er .. , .................... c .ot.:.r"~-----·- ..................................................... .. .................................................................................... A~

l·~q~ ,., ~o~c·I-"'C ---l ' V -• ~..., '- '-'- i \...t ' .? J.•/! 1 - I lJ


(

ENDORSEMENT No. 2

Notwithstanding the limitations contained in Exclusion 1 it is understood and agreed that coverage as affored by this policy shall include coverage for the Assureds Liability as a Common carrier and shall apply in excess o:f and follow the terms and conditions of Central NatioCJal Insurance CoP.!pany Bill of Lading Liabili"ty Pol icy Number CNS 9-30-88

It is further agreed that $500,000. Self-Insured Retention specified in the policy is the maximu~ amount over which this policy shall apply insured or uninsured and the existence of coverage as stated in the. above paragraph shall not serve to reduce this underlying amount.

All other terms and co11diti-on.s rem-;ztnrn~ unchanged

of Central National Insurance Comoanv

E F FE C Tl \' E __ .£N~0?2'.!.!'e~-IDl'J.bQ:le:.J:r:._,2:<:o4, _JJ_o9t:.7L'l.:L..-----------

ln:s:ur-l):i John F'. Nash and RohPy+ c H;,J doW'"'I=l s Tr11stees of the Property of· Lehigh Valley Railroad Company, Debtor CRAVENS, DARGA.'l & COX!

BY----------------------------------------

..

•


C?Vof\1\GE: SH!CIAL CO'JlmAGR

IN CONSIDERI\TION OF

IT

ca AN ADDITIONAl. ?RE.MIUM

0 A RETURN PREMIUM

0 THE l"REMIUM CHARWEO

IO HEREBY AGREEC THAT

0 1. RATE

0 %. PREMIUM

D 3, DEPOSIT PREMIUM

il 4. INSTAl..I..MENT

0 :S. AUDIT

CJ 6. TERM

IJ IS AMENC£0 TO READ AS FOL.l.OWS

lil IS CHARGED FOR THE P'li:RIOD

0 7. lNCII:PTION DATE

D I!J. EX~IRATION DATE

D 9. NAME OF A•HUREO

0 10, ADOMEl!IB 01"" LOCATION OF PROPERTY

0 \2, bESCRIPTION OF PROPERTY COVER EO

N091!M88ll 29, 1974 TO HOVEMBIR 29• 1975

THE EF"F"e:CTIVE OATE OF THIS <!NOORSEMENT l'S AS bo"'HelT'N ADOVB

_,ADJ)...,.,.l'l',...IaW. ......... .._ __ ,~ ... , uw

•J. FEDERAL TAX

$

$

89.soo.o

0

0

0

0

.,., STATE TAX s % STAMPfNG FEE s

$

s s

!19.500,00 s

13, COVERAGE -~ ·~ ...

14. THE FOLLOWING 1$ NAMED Aa AN ADOITIONA.L AflflURitD

fS. SECURITY

16. CERTIFICATE 1$ C ... NCr::LLEO

0 PRO RATE .~ .. -.·

0 SHORT RATI ." .-:'· . =-"\',iC, •.

AT LOS .ANGELIIS, CALIFORNl'A ALL OTHER TERMS AND CONDITIONS RE:'-'AIN UNCHANGLC,

THIS ENCORSEMENT 1:3 ..>.TIACl-n;c 1"'0 o\1'-lD MAOE A I"A.RT OF CEtlTML N .. ".TI~lA1 .. L'IS, CO

h;~suo:::c ro

BROKP.:R: CRAVENS, DARGAN & COMPANY

DATE OF 188UE: BY END, No. 2 Bvr ______________________________ _

-- ,"'I'


. i ;

IN CONSIDERATION OF

. (

GENERAL ENDORSEMENT

The Policy to which this Endorsement is attached is hereby amended by the item(s) marked by !IJ

~:·

lOt An additional premium

0 A return premium

~-----··-··-·····-····-······--·--·· $ ........ ,, ___ ,,,................... ~

0 The premium charged

IT IS HEREBY AGREED THAT

01.Rate

0 2. Premium

0 3. Limits of liability

0 4. Installment

fi! 5. Audit

LOS ANGELES

"E B 2 1 \975

064. 10

0 6. Schedule of Underlying Insurance

0 7. Inception date

0 8. Expiration date

0 9. Na!11e of Assured

tJ 10. Security

0 11. Address of Assured

0 12. Policy is cancelled

0 13. Certificate is cancelled

014.

-·--············-···-·······-·········· $ ······-········-················

··-······---·-···········-·············· $ ....•....•..........•.•.•.•......

Federal Tax-······-·················· $ ············-······-···---··--··

State Tax ...............•............... s ··-·······-······················

Stamping Bureau Fee ............ $ .................................. .

-----··········-·-·········--······- $ -··············-····················

Total ·····-······-··················· $ ........ J&,.Q~_?..-.. 9.Q .••....•

NOVEMBER 29, 1973 to NOVEMBER 29, 1974

F'RElGHT REVENUE RATE PER $1,000,00 EARNED PREMIUM LESS DEPOSIT PREMIUM ADDITIONAL PREMIUM DUE

$66,457,238,00 l. 618

107,528.00 69,500.00

$ 18,028.00

The effective date of this Endorsement is AS SHOWN ABOVE at LOS ANGELES, CALIFORNIA All other terms and conditions remain unchanged. This Endorsement is at:ached to and made a part of ':NS 9-30-87 - CENTRAL NATIONAL INSURANCE COMPANY

ROBERT C. HALDEMAN, TRUSTEE OP THE PROPERTY Issued to: OF LEHIGH VALLEY RAILROAD COMPANY, DEBTOR

CRAVENS. DARGAN & COMPANY

Date of issue: 2-19-75 By EHS:bt

Endorsement No. 3 • By .................................................................... .

~


policy No.

ORO:

( ~NOORSEJ-i.ENT

This endorsement, effective 12:01 A, M. JANUARY 22nd, l975 , fo,ms a: CNS 9-30-87 issued to ROBERT ~. HALDEMAN, TRUSTEE OF THE PROPERTY

OF LEHIGH VALLEY RAILROAD COMPANY, DEBTOR CENTIL~L NA!IONAL TNRURANCE C.OMPANY

In consideration of an Additional Premium to be determined by audit at the rate basis set forth in Item 6 of the schedule, it is herebp agreed that the Name of Insured is amended to include:

LEHIGH VALLEY AND NEW ENGLAND RAILROAD

It is further agreed that solely as respects the above named insured the limits of liability of this policy as set forth in Item 5 of the schedule is amended to read as follo~s:

$ 1,500,000.00 ultimate net loss in respect of each occurrence for PL, PD, FELA and Bill of Lading liability excess of

$ 975,000.00 ultimate net loss in respect of each occurrence for PL, PD, FELA and Bill of Lading liability (insured through Midland Insurance Company) ~hich in turn is excess of

$ 25,00D.OO ultimate net loss in respect of each occurrence for PL, PD, FELA and Bill of Lading liability (self-insured retention),

In no event shall the lill'it of the company's ll.ability be increased by reason· o( this endorsement ..

INF0&'11\TION: Small l1'n ti f e opera ng orty miles of track north from · Bethlehem, !'a. o~ns five d{esels moved 1'3725 cars in 197~ with revenue of )l,JOO,OOO. We get same rate on pcllcy although •mderlying is Sl 000 000 rather than ssoo,ooo. ' ' .

A,ETNA- CRAVENS, DARGAN & COMPANY

END. #4,


. ··- ----····--·---~·--~-----------··· ····--·-···--···---·

,. c (_ ' '

ENDORSEMENT

Premium Adjustment

Freight Revenue (12-1-73 to 12-1-74)

Rate Per $1,000.00

Earned Premium

Less Deposit Premium

Additional Premium Due

Al1 other terms and conditions remaining unchan9ed

................ ·············~·-·--------

$66,457,238.00

1.618

107,528.00

89,500.00

18,028.00

Policy No. 9-30-87 A~ached to and forming p~rtof----~~~~~~~~~~-------------------------------------------

of Central National Insurance Com;;;v,ny

SFFECTIVE _____ ~N~ov~e=mb==e~r~2~9~,~1~9~7~4~-----------------

lnsurt:d Robert c. Of Lehigh

Haldeman. Ttustee of ttw P;,:operty Valley Railroad· Company, Debtor

BY--~--~------------------------------


. '1. ·····:, .•!""· . . . : . . . .

NOTICE OF CANCELLATI?_N .. WS ANGELES, CAL.

·················----------~~~--~~=~-~~--S, .... :.f .· ~.: ... ?.~ ... ?~~ ............................................. ~~;~• ·.;iQ~9.~.~g::J~Tii:;:::·iii.i.i:::::::::= (Insunn~'" l(:t.>mp:my)

hereby gives you written notice in acrordance with the Policy conditions of the c:mcelbtion of

. . CNS 9-30-87 . . LOS ANGELES CALIFORNIA Lts Pohcy ~o. ··························-·······-----···-····· Jssued throup:h 1ts ...••.........•....•..•.•....•.....••........• J ............. _ ..................................................................... Agencv

to ..... ,J.QJ:!!'I .... f.., .... £1M.!!..A .. ll,Q_ll.!)J1.:t: ... C., .... HALllEMAN .... .ET .. .AI..:. ______ ................................................................................................. , .................. .. By virtue of this notice, as issued to you. the Poliey will be canceled and all liability under said Policy will cease at and from 12:01 A. M,,

stundard time, ...... :~~"S~~~--~J~'--·--·····-··• 19 .. .7..!?. without further notice.

If the premium has been paid, the excess of paid premium above the pro rata premium for the expired term, if not tendered to you herein, will be refunded on demand.

1f the premium has not been paid, a biH for the premium earned to the time of cancellation will be forwarded in due course. THIS NOTICE IS TO,

!JOHN F. NASH AND ROBERT C. HALDEMAN, TP~3~EES OF THE P?-OPERTY OF LEHIGH VALLEY RAILROAD COMPANY, DEBTOR C/O LAWTON-BYRNE-BRUNER

LTEN BROADWAY ST. LOUIS, MISSOURI, 63102

POST OFFICE DEPARTMENT

CERTIFICATE OF MAILING Received Ftom:

CRAVEN5, DARGAN & COMPANY ;540 WILSHIRE BLVD.

LOS ANGELES, CALIFORNIA 90005

One piece of ordinary moil addressed to:

AS ABOVE -<

t . -' ...... r;-. ·• ... _ .. .. i ;:, . - <

--~;....,.·

" '· "·

MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL·; OOJ:.s.tJQr;_ ... PROVIDE FOR INSURANCE, - PQSTMASTEH

POO FORM 3817 MAY 19:59

CC: LAWTON-BYRNE-BRUNER REINSURANCE FACILITIES CORP.

< j .

Please return the Policy and oblige,

Yours very truly,

CENTRAL NATIONAL INS. CO. OF OMAHA (Company)


d: / ' c . .?!..# L.-' -::/....·,_. t. • _,(. /)/ ::;_.... :'7/.~...-f"-t!/

By ........................................... ··------··-------·-···"·----· ... ·--····--EDWARD M. SMITd

E. Sanchez hereby certify th:tt on the 28TH

day of OCTOBER, • 197 5

I personally mailed in the U. S. Post Office at

LOS ANGELES. CAL. a notice of (ance!lation, :1n exact carbon copy of which appears above, and at said time .received from rhe U. S. Post Office the receipt (Form 3Sl7) facsimile reproduced hereon

Si~ned at LOS ANGELES, CAL.

This 2 8 day of OCTOBER, SiJ::n::t.ture:


---------- -~---~----·--·---- --------------~-------------·

~. - ~?.!~<!:J;: OF CANCELLATI(.)N .· WS ANGELES CAL. ~rtlUl. iLI.l•OliAr. < t . Ol OXAI!Io. ( · '"( . ---~--------·--·---··-··--····-·----'-----------------

-----------------------------------------------·-------------------~'-------:.'., .............................................................................. ~"'•'•------~: ~!C?.l!~---~-~--rn .• ____ J,9.J.-:i ........ . ( [nsun.ncc: Comp:~ny)

hereby gives you written notice in accordance with the Po! icy condirions of the cancellation of

. _ CNI ~-30--87 _ . 1.05 A:fGllUS, C-M.I:fO.&JOU

:: .. ~~-?.~~-:~!:=:::~~~~~=~~:~;?.~!::~~:~.~-~~:1~~-P.-~~::~.:-~;_·_·_~:~::=~::::::::::::=::=::::==:::::=::::::::=~::::::=:::==~~~::::::~=:=::~:::::=:=:=~~:~: By virtue of this notice, as issued to you, the Policy wiH be canceled and tlll liability under said Policy will cease at 9-nd from 12:01 A. M.,

standard time, .......... ~~---~~~-~----······ 19 ... , . .? tithout further notice. [f the premium has been paid, the ex~;ess of paid premium above the pro rata premi\lm for the exptred term, if not tendered to you herein, will

be refunded on demand.

If the premium has not been paid, a bill for the premium earned to the time of cancellation will be forwarded tn due course . . THIS NOTICE IS TO:

1 Jetw. -r. li.Ult ~ ao:amrz c. R.IU.ZI!!lUli, TRU3T~S OY TftX P!CPtXTT OF LZHica V~Y a.\ I !..WAD C-Om>.t!IT. llll:lS'l:Cil C/ 0 UliTClHIY~lHSltlJ;Jl!ll.

L nu sw4i>ii.li. Y $!, l.Xlll, :!I3:10Uli.I, 63102

CC: LAIIrOlt-ll'!UlHiltlJ!Htl'. it£!:~ SU'a.ASCZ 1 AC ILZ"!'I.ES CCRP ..

Please return the Policy and oblige,

Yours very truly,

Ci~ l.A:l'IOlUl. t;;s, CO, OF O.'Wi& (Company)


r: '- /./1 ,.·-~-.-. r'".( By ______________ !(!ij;IA,'!t'j'"'Y!';----~Ml'l':!""""'""'""'""'""""""

S, Sanc:hea hereby c~:rtify that on the 28 !ff

day of ' !975

r personally mailed in the U.S. Post Office at

------"L'-"0'-"-S~Aa.N'--'-'GELES. CAL. a o.otke of cancellation, ~n ~xact cacbon copy of which appears .1bove, and at said time received from the li. S. Po:st Office the r~ceipt (For[D 3817) iacsimile reproduced hereon

LOS ANGELES, CAL.

Thi:s 28 day of 19)'5

Signature:


ENDORSEMENT

Premium Adjustment

Freight Revenue (12-1-73 to 12-1-74)

Rate Per $1,000.00

Earned Premium

Less Deposit Premium

Additional Premium Due

All other terms and conditions remaining unchanged

····---·--·----

$66,457,238.00

1. 618

107,528.00

89,500.00

18,028.00

POlicy No. 9-30-87 AHached to and forming part of ____ ~~~~~~~~~~------------------------------------------

of Central National Insurance Company

EFFECTIVE ____ ~No~v=emb===e~r-=2~9~,~1~9~7~4~-----------------

Jnsured Robert C. Of Lehigh

Haldeman, Trpstee of tbe Property Valley Railroad Company, Debtor

BY----------------------------------------


(

.· ....

Reinsurance Facll !ties Corporationr----Endorsement No. 1

~------------------------------------------~--~----------------This endorsement forms a part of policy no. DX-608 Named Insured issued by ARGONAUT INSURANCE COMPANY and effective November 29, 1973 12:01 A.M. Rl standard time AC

Central National Insurance Company Lehigh Val ley Railroad

(The informdtiot~ llbo"t i~ required only when thi~ endorsement h iHued wb\coquent to prt>pdrc'lhon ol rhe polic:y.i

~ An additional premium of $698§"_i.s.-hereby due Argonaut for the audi·r period November 29, 197~ovember 29, 1974.

LOS ANGElES

MAR 1 197S

064- 10 {)'. Nothing herein cont.ained shall be held to vary, alter, waive or extend any of the terms, conditions, a\t.ments • limitations of this policy other than as above stated.

r ..... ~-

l·.~~j: n • ~~·r:·_··w· ?!!~

~;, 13 • fl.· .... UeN> ~;-

1 AurlHoR;o P.EPRESENTATIV£ ~crr-1-zr-;-t~

• 1 v_ -Hl ' I _ I) ;f 0,,, of~£} I !~·-'-""'- f-t'v l.C(,-

1L I J ~I l~l?'f COUNTERSIGNATURE·6Y RESIDENT UCENSED AGENT

SECAETARY

UNO•l07 R·~

.-. \ ~

','-.:, --\

... ------- ..._


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