Frontier Airlines 2006 Annual Report Download - page 261

ARTICLE VI
INSURANCE
Section 6.01 Minimum Insurance Coverages. During the Term, in addition to any insurance required to be maintained by
RAI pursuant to the terms of any aircraft lease, or by any applicable governmental or airport authority, RAI shall maintain, or cause to
be maintained, in full force and effect policies of insurance with insurers of recognized reputation and responsibility, in each case to
the extent available on a commercially reasonable basis, as follows:
(a) Comprehensive airline liability insurance, including bodily injury and personal injury, third party propery
damage, passenger liability (including passengers' baggage and personal effects), cargo and mail legal liability, for a combined single
limit of not less than [* ] per occurrence (or whatever higher amount RAI may carry from time to time), limited in the case of personal
injury to [*] per occurrence and in the aggregate (except with respect to passengers to whom the full policy limit applies), and War
Risk liability insurance as per London form AVN.52E or current equivalent, or as provided by the Federal Aviation Administration
program, with a combined single limit no less than [*] per occurrence (or whatever higher amount RAI may carry from time to time);
(b) All Risk Hull Insurance on aircraft performing services hereunder, insured on an agreed value basis with
standard market deductibles, including hull war coverage as per London form LSW 555 or equivalent, or as provided by the Federal
Aviation Administration program.
(c) Workers' compensation as required by the appropriate jurisdiction and employer's liability with a limit of not
less than [*] combined single limit; and
(d) Other property and liability insurance coverages of the types and in the amounts that would be considered
reasonably prudent for a business organization of RAI's size and nature, under the insurance market conditions in effect at the time of
placement, but in any event of the type and the amount that Frontier may reasonably require to prevent or minimize a disruption in the
provision of Regional Airline Services resulting from a casualty or liability incident related to RAI's operations. All coverages
described in this Section 6.01 shall be placed with deductibles reasonably prudent for a business organization of RAI's size and nature,
under the insurance market conditions in effect at the time of placement.
Section 6.02 Endorsements. RAI shall cause the policies described in Section 6.01 to be duly and properly endorsed by
RAI's insurance underwriters with respect to RAI's flights and operations as follows:
(a) with respect to liability coverage to provide that Frontier, and its directors, officers, agents, employees and other
authorized representatives shall be endorsed as additional insured parties;
(b) To provide that the underwriters shall waive subrogation rights against Frontier, its directors, officers, agents,
employees and other authorized representatives;
(c) with respect to liability coverage, to provide that insurance shall be primary to and without right of
contribution from any other insurance which may be available to the additional insureds;
(d) To include a breach of warranty provision in favor of the additional insureds;
(e) To accept and insure RAI's hold harmless and indemnity undertakings set forth in this Agreement, but only to
the extent of the coverage afforded by the policy or policies;
(f) with respect to liability coverages to provide that the inclusion of more than one corporation, person,
organization, firm or entity as Insured under the policies shall not in any way affect the rights of any such corporation, person,
organization, firm or entity either as respects any claim, demand, suit, or judgment made, brought or recovered by or in favor of any
other Insured, or by or in favor of any employee of such other Insured. The policy shall protect each corporation, person, organization,
firm or entity in the same manner as though a separate policy had been issued to each. Nothing herein shall operate to increase the
liability of the insurers as set forth in the policies beyond the amount for which the insurers would have been liable if only one person
or interest had been included as an insured.
Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 15, 2007 Powered by Morningstar® Document Research℠