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Times New Roman;} {\f1000000 Times New Roman;} }{\colortbl; \red0\green0\blue0; \red0\green0\blue0; \red0\green0\blue255; \red0\green0\blue255; }\viewkind1\viewscale100\margl0\margr0\margt0\margb0\deftab80\dntblnsbdb\expshrt n\paperw12240\paperh15840\pard\sb0\sl-240{\bkmkstart Pg1}{\bkmkend Pg1}\par\pard \ql \li3333\sb0\sl-260\slmult0 \par\pard\ql\li3333\sb0\sl-260\slmult0 \par\pard\ ql\li3333\sb0\sl-260\slmult0 \par\pard\ql\li3333\sb0\sl-260\slmult0 \par\pard\ql \li3333\ri3142\sb165\sl-260\slmult0\fi230 \up0 \expndtw-3\charscalex100 \ul0\nos upersub\cf2\f3\fs24 FORMAL REPORT OF THE COMMITTEE ON \line \up0 \expndtw-3\char scalex100 MARINE INSURANCE AND GENERAL AVERAGE \par\pard\ql \li2520\sb0\sl-276\s lmult0 \par\pard\ql\li2520\sb0\sl-276\slmult0 \par\pard\ql\li2520\sb15\sl-276\sl mult0 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf1\f2\fs24 The Committee me t on October 30, 2002. \par\pard\ql \li2520\sb264\sl-276\slmult0 \up0 \expndtw-3 \charscalex100 Jonathan S. Spencer, Chairman of the Subcommittee on General Aver age, \par\pard\ql \li1800\ri1747\sb4\sl-276\slmult0 \up0 \expndtw-2\charscalex10 0 reported regarding recent developments in the revision of the York Antwerp Rul es and a \line \up0 \expndtw-2\charscalex100 BIMCO Special Circular dealing with a new model General Average absorption clause. \line \up0 \expndtw-2\charscalex 100 The new BIMCO clause has been designed to help ship owners avoid involving c argo \line \up0 \expndtw-2\charscalex100 interests in smaller General Average cl aims and one of its more innovative provisions is \line \up0 \expndtw-2\charscal ex100 that the hull deductible will not apply to claims under the clause. Meanw hile the CMI's \line \up0 \expndtw-2\charscalex100 revision of the York Antwerp Rules has proceeded with the formation of a CMI \par\pard\ql \li1800\sb4\sl-276\ slmult0 \up0 \expndtw-2\charscalex100 international working group to which Ex-Pr esident Dorsey appointed Howard \par\pard\ql \li1800\sb4\sl-276\slmult0 \up0 \ex pndtw-2\charscalex100 McCormack as the only non-European member. The initiative to change the York \par\pard\ql \li1800\sb4\sl-276\slmult0 \up0 \expndtw-2\char scalex100 Antwerp Rules is being driven by individuals in the British cargo insu rance market and \par\pard\ql \li1800\ri1610\sb0\sl-276\slmult0 \up0 \expndtw-2\ charscalex100 their basic thrust is to restrict General Average strictly to atta inment of safety, eliminating \line \up0 \expndtw-2\charscalex100 allowances of expenditure for the common benefit and safe prosecution of the voyage \line \up0 \expndtw-2\charscalex100 that have long been a basic tenet of United States adj usting practice. Under current \line \up0 \expndtw-2\charscalex100 market forms of hull and machinery insurance policies, there would be no coverage for \line \up0 \expndtw-2\charscalex100 this type of expenditure if it were eliminated fro m General Average and some of the more \line \up0 \expndtw-2\charscalex100 seaso ned commentators see a real possibility of cargoes being abandoned at ports of \ line \up0 \expndtw-2\charscalex100 distress by less solvent ship owners, transfe rring the burden to the cargo insurers who \line \up0 \expndtw-2\charscalex100 u nder typical policies insure the venture as well as the physical property. Once the report \line \up0 \expndtw-2\charscalex100 of the CMI Subcommittee becomes a vailable, the General Average Subcommittee hopes \line \up0 \expndtw-2\charscale x100 to foster more participation in the debate by members of the United States underwriting \line \up0 \expndtw-2\charscalex100 market. The American Institute of Marine Underwriters, under its President Walter \line \up0 \expndtw-3\charsc alex100 Kramer, has advised of the Institute\u8217?s interest in this matter. \p ar\pard\ql \li2520\sb268\sl-276\slmult0 \up0 \expndtw-2\charscalex100 Jonathan S pencer also recommended the attention of members to an address \par\pard\ql \li1 800\ri1783\sb0\sl-280\slmult0 \up0 \expndtw-2\charscalex100 delivered by Howard McCormack, as outgoing Chairman of the Association of Average \line \up0 \expndt

w-2\charscalex100 Adjusters of the United States, in which the history of the cu rrent debate is discussed in \line \up0 \expndtw-2\charscalex100 detail. The BI MCO circular and Mr. McCormack\u8217?s paper may be found on a new \line \up0 \e xpndtw-3\charscalex100 website entitled: {\field{\*\fldinst {HYPERLINK "http:// www.thegapage.com/" }}{\fldrslt {\ul0\nosupersub\cf4\f5\fs24\ul www.TheGApage.co m}}} \par\pard\qj \li1800\ri1607\sb241\sl-280\slmult0\fi720 \up0 \expndtw0\chars calex106 \ul0\nosupersub\cf1\f2\fs24 George R. Zacharkow, Chairman of the Subcom mittee on Cargo Insurance, \line \up0 \expndtw0\charscalex102 reported that the Subcommittee is in the process of preparing an analysis of \u8220?All Risk\u8221 ? \line \up0 \expndtw0\charscalex100 cargo insurance. Mr. Zacharkow has receive d contributions from numerous Committee \line \up0 \expndtw-2\charscalex100 memb ers summarizing legal precedent addressing \u8220?all risk\u8221? cargo insuring terms. \par\pard\qj \li1800\ri1608\sb260\sl-280\slmult0\fi720 \up0 \expndtw0\ch arscalex104 Mr. Dan St. Jacques, retired underwriter and current marine insuranc e expert, \line \up0 \expndtw0\charscalex100 delivered a comprehensive presentat ion to the Cargo Subcommittee outlining the history \line \up0 \expndtw-2\charsc alex100 of \u8220?All Risk\u8221? cargo insurance as it developed in the United States and London markets. \par\pard\qj \li1800\sb0\sl-260\slmult0 \par\pard\qj\ li1800\ri1608\sb37\sl-260\slmult0\fi720 \up0 \expndtw0\charscalex108 John M. Woo ds, Chairman of the Subcommittee on Hull and Protection & \line \up0 \expndtw0\c harscalex100 Indemnity Insurance, reported that the Subcommittee will proceed wi th the Annotations \par\pard\sect\sectd\fs24\paperw12240\paperh15840\pard\sb0\sl -240{\bkmkstart Pg2}{\bkmkend Pg2}\par\pard\qj \li1800\sb0\sl-275\slmult0 \par\p ard\qj\li1800\sb0\sl-275\slmult0 \par\pard\qj\li1800\sb0\sl-275\slmult0 \par\par d\qj\li1800\sb0\sl-275\slmult0 \par\pard\qj\li1800\ri1606\sb92\sl-275\slmult0 \u p0 \expndtw-1\charscalex100 \ul0\nosupersub\cf1\f2\fs24 Project concerning the \ u8220?American Institute Hull Clauses (June 2, 1977). Mr. Woods also \up0 \expn dtw0\charscalex104 reported that the Joint Hull Committee in the London Market w ill be unveiling a new \up0 \expndtw0\charscalex104 Hull wording on October 31, 2002 in the Old Library at Lloyd\u8217?s and on November 4, \up0 \expndtw0\chars calex100 2002 at the Yacht Club in Piraeus. He further advised that new United States legislation \up0 \expndtw-1\charscalex100 is pending that may void any ex clusions from coverage relating to terrorism in insurance \up0 \expndtw0\charsc alex100 policies issued in the United States or relating to subject matter in th e United States. The \up0 \expndtw0\charscalex107 Terrorism Risk Insurance Act i s intended to create a federal backstop for terrorism \up0 \expndtw0\charscalex1 00 insurance. Further details regarding the House and Senate bills (H.R. 3210 a nd S. 2600) \up0 \expndtw-3\charscalex100 may be found in the Maritime Legislati on Committee Report. \par\pard\qj \li1800\sb0\sl-276\slmult0 \par\pard\qj\li1800 \ri1608\sb9\sl-276\slmult0\fi720 \up0 \expndtw0\charscalex105 Stephen V. Rible, Committee Chairman, introduced the Speaker for the Main \line \up0 \expndtw0\cha rscalex100 Meeting: Mr. Stephen L. Clark, Asst. Vice President and Underwriter for CNA Marine. \line \up0 \expndtw0\charscalex106 Mr. Clark delivered an outsta nding presentation on \u8220?The Business of Underwriting \line \up0 \expndtw0\c harscalex100 Marine Terminal Liability Exposures.\u8221? Marine terminals risks are being insured under a \line \up0 \expndtw0\charscalex107 variety of insurin g terms, including traditional marine cover as well as commercial \line \up0 \ex pndtw-2\charscalex100 general liability cover, directors and officers cover, and employment practices cover. \par\pard\qj \li1800\ri1607\sb264\sl-276\slmult0\fi 720 \up0 \expndtw0\charscalex108 Gene B. George, Committee Vice Chairman, report ed on publication of the \line \up0 \expndtw0\charscalex106 Committee\u8217?s Fa ll Newsletter containing an excellent review of the recent insurance \line \up0 \expndtw0\charscalex109 decision regarding the World Trade Center, in addition t o other marine insurance \line \up0 \expndtw-2\charscalex100 decisions. The News letter is available on the MLA Website. Members are encouraged to \line \up0 \ expndtw0\charscalex105 submit summaries or citations of recent insurance decisio ns to the Marine Insurance \line \up0 \expndtw-2\charscalex100 Committee via e-m ail to: \ul0\nosupersub\cf4\f5\fs24\ul stephen.rible@mendes.com\ul0\nosupersub\c f1\f2\fs24 or \ul0\nosupersub\cf4\f5\fs24\ul ggeorge@rayrobcle.com \par\pard\ql \li6840\sb0\sl-276\slmult0 \par\pard\ql\li6840\sb8\sl-276\slmult0 \up0 \expndtw

-3\charscalex100 \ul0\nosupersub\cf1\f2\fs24 Respectfully submitted, \par\pard\q l \li6840\sb264\sl-276\slmult0 \up0 \expndtw-3\charscalex100 Stephen V. Rible, C hairman \par\pard\sect\sectd\fs24\paperw12240\paperh15840\pard\sb0\sl-240{\bkmks tart Pg3}{\bkmkend Pg3}\par\pard\li2520\sb0\sl-276\slmult0\par\pard\li2520\sb0\s l-276\slmult0\par\pard\li2520\sb0\sl-276\slmult0\par\pard\li2520\sb0\sl-276\slmu lt0\par\pard\li2520\sb87\sl-276\slmult0\fi0\tx4679 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf1\f2\fs24 Filename:\tab \up0 \expndtw-3\charscalex100 2002for malreport-fall.doc\par\pard\li2520\sb0\sl-276\slmult0\fi0\tx4680 \up0 \expndtw-3 \charscalex100 Directory:\tab \up0 \expndtw-3\charscalex100 C:\\Documents and Se ttings\\jjones\\Desktop\\MLA Upload\par\pard\li2520\sb0\sl-276\slmult0\fi0\tx467 9 \up0 \expndtw-3\charscalex100 Template:\tab \up0 \expndtw-3\charscalex100 C:\\ Documents and Settings\\jjones\\Application\par\pard\qj \li2520\ri5468\sb0\sl-28 0\slmult0\fi360 \up0 \expndtw-3\charscalex100 Data\\Microsoft\\Templates\\Normal .dot \line \up0 \expndtw-3\charscalex100 Title: \par\pard\qj \li2520\ri8742\sb6\ sl-260\slmult0 \up0 \expndtw-3\charscalex100 Subject: \line \up0 \expndtw-3\char scalex100 Author: \par\pard\qj \li2520\ri8422\sb4\sl-280\slmult0 \up0 \expndtw-3 \charscalex100 Keywords: \line \up0 \expndtw-3\charscalex100 Comments: \par\pard \li2520\sb8\sl-276\slmult0\fi0\tx4680 \up0 \expndtw-3\charscalex100 Creation Dat e:\tab \up0 \expndtw-3\charscalex100 8/21/2005 7:02:00 PM\par\pard\li2520\sb0\sl -276\slmult0\fi0\tx4679 \up0 \expndtw-3\charscalex100 Change Number:\tab \up0 \e xpndtw-3\charscalex100 2\par\pard\li2520\sb0\sl-276\slmult0\fi0\tx4680 \up0 \exp ndtw-3\charscalex100 Last Saved On:\tab \up0 \expndtw-3\charscalex100 8/21/2005 7:02:00 PM\par\pard\li2520\sb0\sl-276\slmult0\fi0\tx4681 \up0 \expndtw-3\charsca lex100 Last Saved By:\tab \up0 \expndtw-3\charscalex100 Information Services\par \pard\li2520\sb0\sl-276\slmult0\fi0\tx4681 \up0 \expndtw-3\charscalex100 Total E diting Time:\tab \up0 \expndtw-3\charscalex100 0 Minutes\par\pard\li2520\sb0\sl276\slmult0\fi0\tx4680 \up0 \expndtw-3\charscalex100 Last Printed On:\tab \up0 \ expndtw-3\charscalex100 8/22/2005 2:27:00 PM\par\pard\li2520\sb0\sl-276\slmult0\ fi0 \up0 \expndtw-3\charscalex100 As of Last Complete Printing\par\pard\li2520\s b0\sl-276\slmult0\fi360 \up0 \expndtw-3\charscalex100 Number of Pages: 2\par\par d\li2520\sb0\sl-276\slmult0\fi360\tx5400 \up0 \expndtw-3\charscalex100 Number of Words:\tab \up0 \expndtw-3\charscalex100 745 (approx.)\par\pard\li2520\sb0\sl-2 76\slmult0\fi360\tx5400 \up0 \expndtw-3\charscalex100 Number of Characters:\tab \up0 \expndtw-3\charscalex100 4,249 (approx.)\par\pard\sect\sectd\fs24}