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Enron Mail |
Attached from Jim Bouillion is the latest proposal from insurers for North
American power gen assets. Please review and adivse of your interest in pursuing this further. ---------------------- Forwarded by David Marshall/HOU/ECT on 03/08/2001 04:31 PM --------------------------- James L Bouillion 03/07/2001 04:58 PM To: David Marshall/HOU/ECT@ECT, Terry Yamada/Corp/Enron@Enron, Paul E Parrish/NA/Enron@Enron, Nigel Beresford/EU/Enron@ENRON, Rino T Manzano/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Roberto Figueroa/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mariella Mahan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Per Sekse/NY/ECT@ECT, Paul Clayton/HOU/ECT@ECT, Jonathan Davis/HOU/ECT@ECT Subject: Property Deductible Buy-down Option We have an indication for a deductible buy-down as outlined on the attached exhibit. The premium due the underwriter is $3 million plus we must assume the first $4 million in losses in the aggregate above a combined deductible for property damage and business interruption of $1 million. In order to have funds available to pay losses, we propose to house the $4 million aggregate in Enron's captive where it would be available to pay claims excess of the $1 million combined deductible as stated above. After the $4 million is expended, the insurance underwriter will assume payment of losses subject to a per loss deductible of $1 million property damage plus a 30 day waiting period for business interruption. This premium allocation is only valid if all 11 listed assets participate. We are not likely to get premium reductions equal to the allocated amounts if certain assets elect not to participate. Once the incurred losses have been completely quantified, we contemplate returning the unused portion of the $4 million loss fund to the assets participating at the end of the policy term proportionately based on property values subject to the following exceptions: Any asset having a loss would receive no loss fund refund. Any asset exiting the program early would receive no loss fund refund. Please indicate by noon central standard time on March 9, 2001, your decision relating to this proposal.
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