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6. Prompt Indication of Any objections Required

Return of Executed Agreements
Representation on the Administration Committee
A. To the 16 Companies in the First Layer of Coverage

It is essential that the Committee proceed with the utmost promptness to carry out its plans for claims administration oversight on behalf of the subscribing companies. Therefore, each of those companies should advise the Committee immediately upon receipt of this communication, if it has any objection to what is proposed, especially to the initial funding to defray the expenses of the Committee and the work already done on your behalf as described above. If the Committee does not receive notice of a significant objection on your part to its plans as described herein by the end of the business day, November 19, 1976, it will proceed as outlined. B. TO All Subscribing Companies

You will be kept fully informed of the Committee's work on your behalf and notified of the location of this office, as soon as that is established.

In any event, as soon as possible, please return executed copies of the four Servicing Carrier Agreements.

We need to keep the Committee to a manageable size. Nevertheless, each insurer subscribing to at least five per cent (58) of either layer of coverage is invited to designate one of its officers to be on the Committee.

Pending establishment of the Committee's regular office, please address it in care of:

Edward T. Harris, Assistant Vice President
Continental Insurance Companies
13th Floor
80 Maiden Lane

New York, New York 10038
Mr. Harris will receive, and there should be sent him on the enclosed form:

1. Your objection, if any, to the Committee's proposals;

If you accept the invitation to be represented on the
Committee, a designation of the person who will serve

3. The name, address, and telephone number of the person

with whom the Committee should communicate in the course
of its work for you.
Please enclose with the completed form an executed Servicing
Carrier Agreement for each of the four carriers and man-
ufacturers. A self-addressed envelope is provided for
your convenience.

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For the Administration Committee as initially constituted,

Very truly yours,
Eugene F. Brady, Director, claims

Aetna Casualty & Surety Co.
Malcolm Burton, Vice President

Chubb & Son Inc.
George W. Eichler, Manager, Nat'l Accounts

Edward T. Harris, Assistant Vice President
Continental Insurance Companies



THIS AGREEMENT made and entered into effective as of the 12 day

of August, 1976, by and between the undersigned insurance company (les), and FEDERAL INSURANCE COMPANY, (hereinafter, the "Company").

WHEREAS, the Insurers listed in Attachment A (hereinafter the "Insurers ") have agreed to provide Swine Flu Liability Insurance for the manufacturers of the swine flu vaccine provided pursuant to the National Swine Fly Immunization Program of 1976 and all as more specifically set forth and for the quota share percentages subscribed for in the various insurance policies, and

WHEREAS, the undersigned insurance company (ies) wish to appoint the Company as servicing carrièr for one of the manufacturers for the purpose of servicing Swine Flu Liability Insurance claims on their behalf, and

WHEREAS, the companies listed in Attachment B have agreed to act as servicing carriers for the undersigned insurance companies and such insurance companies agreed to establish a National Swine Flu Program Insured claims Administration Committee (hereinafter the "Administration Conimittee") to provide overall supervision and promote efficiency and avoid expense and duplication in claim servicing, and

WHEREAS, the Company is willing to accept appointment as servicing carrier for such purposes subject, nevertheless, to the terms and conditions hereinafter specified:

NOW THEREFORE, in consideration of the premises and of the mutual agreements hereinafter contained, the Company agrees and the undersigned insurance companies agree severally and not jointly as follows:


SECTION 1 Appointment.
1.1 The undersigned insurance companies hereby appoint the Company as

the exclusive servicing carrier for the Swine Flu Liability In-
surance claims and losses of the undersigned insurance companies
with Merck & Co. Inc. and all entities which it owns, controls
or operates, (hereinafter, the "Manufacturer"), and the Company
hereby accepts the said appointment, for such purposes and with such
authority as are hereinafter set forth.
The Company agrees to conduct its duties hereunder in accordance with
the National Swine Fly Immunization Program of 1976 and any regula-
tions promulgated thereunder and with the directives of the Adminis-

tration Committee. 1.3 As used in this Agreement, "Swine Flu Liability Insurance" means:

the policies issued by the "Insurers" to the Manufacturer

policy forms numbered N.S.F. 1 Ed: 8/76 and N.S.F.2 Ed:8/76. 1.4 The undersigned insurance companies severally but not jointly agree

that they will contribut and pay to the Company the losses, settlements, allocated, non-allocated, and other expenses or obligations in accordance with the terms of this Agreement for their respective quota share percentages as set forth on the policies described in 1.3 above and on Attachment A.



As used in this Agreement, Company shall include the named company
and any subsidiary or affiliate thereof including any affiliated
or subsidiary adjusting company.

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This Agreement shall extend from August 12, 1976 up to and including the resolution of the last claim reported under said "Swine Flu

Liability Insurance", unless earlier terminated as hereinafter



SECTION 3 General Powers and Duties of the Servicing Carrier.

The Company shall make available such of its own staffing, office
space, facilities and equipment as are necessary for the performance
of its duties hereunder; provided, however, that any separate
staffing, office space, facilities or equipment which the undersigned
insurance companies determine are necessary or desirable for the
efficient administration of their business shall be provided at

their cost and expense.!
3.2 The Company shall examine and investigate claim or loss reports,

shall determine coverages and shall adjust, settle, compromise, or have the right to defend or litigate, any claim or loss under the policies referred to in Section 1.3 above and shall have the right to hire attorneys, independent adjuster or others in those circumstances in which the use of staff regularly employed by the Company is impractical or imprudent as determined solely by the Company.

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