TA MEETING TUESDAY AFTERMON, OFFICIALS OF THIS DEPARTMENT $ CHAIRMAN ROGERS AND OTHER MEMBERS OF THE COMMITTEE MADE FLAIN AT DAVID MATHE'S SECRETARY DEPARTMENT OF HEALTH EDUCATION & The following modifications to the standard ISO policy will be made: 1. The definition of occurrence will be changed to provide that occurrence means an innoculation of swine flu vaccine (as defined) manufactured by a named insured. 2. A definition of swine flu vaccine will be provided. These two changes when read in the light of the insuring agreement will restrict the policy to innoculation of swine flu vaccine. 3. The named insureds shall be the four (4) manufacturers and the . 4. The definitions of bodily injury and property damage will be 5. A separate provision will be added to restrict the policy to 6. The limits of liability provisions will be deleted and the fol- 7. The premium provision will be as follows; 8. The premium for this policy shall be the deposit premium plus Additional premiums based on this formula shall be paid to the In the event premiums are not paid when due, this policy may SWINE FLU VACCINE PROGRAM We are enclosing a proposal for Insurance to provide coverage for the four manufacturers. This proposal differs as you will note from any previous forms, and it has been drafted to provide the underwriters with a profit potential for exposing their limits of liability. The policy will be on a quota share subscription form with each underwriter signing for their percentage of participation. It is contemplated using the standard ISO policy form with the attached modifications. It is anticipated that many claims will be subject to subrogation against the government, relying upon the contract between HEW and the manufacturers delineating the responsibilities of each. The rating formula is as follows: $50,000,000 AGGREGATE LIMIT FOR THE PROGRAM The premium for the policy is the deposit premium ($2,000,000.) plus an amcunt equal to 120% of that portion of loss which includes sums paid as damages and as allocated claim expenses and 100% of sums paid as unallocated claim expenses. The premium so determined is subject to a minimum of $2,000,000. and up to a SWINE FLU EXCESS Each manufacturer will also require a policy in the amount of $50,000,000 aggregate limit, including losses and loss expenses, in excess of the primary $50,000,000 aggregate policy issued to the four manufacturers jointly. This excess policy will apply only for liability which may remain with the manufacturer under the attached contract which each manufacturer has with HEW. The specifications for manufacturing and distribution of the product are established by the government and the government's action against any manufacturer can only be for reimbursement of losses which the government has paid to third parties arising out of a manufacturer's failure to comply with such specifications. The premium for each of these individual policies will be a flat charge of $375,000. The policy will be on a quota share subscription form with each underwriter signing for their percentage of participation. We expect each underwriter will participate in these excess contracts as well as the primary program. Draft of 7/28/76 (Revised) ARTICLE 1. DELINEATION OF RESPONSIBILITIES OF THE GOVERNMENT AND THE CONTRACTOR A. The parties recognize that the Government has initiated, planned, and is arranging for the implementation of the influenza immunization program. Because of the need to have the vaccine tested, manufactured, and delivered within a relatively short period of time in order that the population may be inoculated in an attempt to prevent an influenza epidemic, the Government has assumed certain responsibilities as specified herein which would ordinarily devolve upon the Contractor. It is the intention of the parties that the Contractor will be responsible solely for the performance of its obligations under Paragraph C herein. It is the purpose of this Article to delineate the separate responsibilities of the Government and the Contractor. In the light of the circumstances described in Paragraph A hercof, B. the Government shall be responsible for: (1) The adequacy of the standards and specifications for the vaccine required to be delivered under this contract, including their compliance with all applicable requirements of law and regulation. (2) The safety and suitability of materials provided to the Contractor by the Government under or in connection with this contract. (3) The investigation and determination of the safe and effective dosages and adequate directions for the use of the vaccine. (4) The investigation and determination of the risks and benefits of inoculation with the vaccine. |