The Articles of the Agreement, Loss Financing Plan of October 1, 1986 are hereby amended as follows:
(A) To amend § 1.14 of Part I to read as follows (with new language underlined):
“‘Loss’ means the total amount which any Participating Entity pays to indemnify a Covered Person on account of claims made against him or her for Wrongful Acts, including, but not limited to, judgments, settlements and Defense Costs. Loss does not include fines or penalties or other matters which cannot be indemnified under law or that portion of claims against a Participating Entity which are covered under a policy of insurance purchased pursuant to Section 3.5 of Part I.”
(B) To add a new § 3.5 of Part I as follows:
“Upon the approval of each of the Participating Entities, (i) amounts may be withdrawn from the Fund to purchase insurance or reinsurance to supplement the obligations of the Fund pursuant to Part II of this Agreement: and (ii) the Participating Entities shall have no obligation to replenish the Fund for that portion of claims paid pursuant to the terms of the insurance policy or for amounts used to pay the premiums associated with such insurance.”
(C) To amend § 4.4F of Part I (relating to the powers of the Fund Manager) to read as follows (with new language underlined):
“With the concurrence of the Fund Advisors, to enter into or cause the Trustee to enter into contracts and agreements in furtherance of the purposes of the Plan, including contracts of insurance and reinsurance; provided that all contracts of insurance and reinsurance purchased in accordance with Section 3.5 shall require approval of the Participating Entities.”
(D) To add a new second paragraph to the preamble to Part II to read as follows:
“Notwithstanding any provision of these Articles to the contrary, if insurance has been purchased in accordance with the provisions of Section 3.5 of Part I, payments from the Fund in any year shall not be made which, in the judgment of the Fund Manager (with the concurrence of a majority of the Fund Advisors), reduce the amount on hand in the Fund below the level required to pay premiums for such insurance, taking into account the payment to the Fund of any retrospective costs as defined in Section 5.3 of Part I.”
(Ord. MET 93-21, passed 11-9-1993)