Message-ID: <9888072.1075845884553.JavaMail.evans@thyme>
Date: Wed, 16 May 2001 08:56:00 -0700 (PDT)
From: paul.parrish@enron.com
To: john.rigby@enron.com, scott.dieball@enron.com
Subject: INSURANCE EXHIBIT FORTURBINE PURCHASE AGREEMENT
Cc: sheila.tweed@enron.com, kay.mann@enron.com, david.marshall@enron.com, 
	james.bouillion@enron.com
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John:
The changes I suggested on the watercraft wording are still being reviewed=
=20
for completeness. I think what I gave you will work for most situations whe=
re=20
the watercraft is incidental to the work or is far removed from our being=
=20
involved [contractor to sub to sub contractor] but it does not address ever=
y=20
situation that we could be involved in. We may need to expand our wording=
=20
accordingly.

Likewise, your question on giving to the turbine venders the waiver of=20
subrogation and additional insured is an even bigger concern. You are askin=
g=20
us to obligate ourselves in providing waiver and additional insured status =
to=20
GE which we cannot do.   As you know, we went many years with providing=20
turbine venders protection under the insurance because the market was soft=
=20
and underwriters agreed to it. Now they balk at giving it because of the=20
losses they have incurred and we cannot predict what they will agree to. It=
=20
does not matter if the machines are proto-type or not, there is a good chan=
ce=20
right now that they will not agree to insuring the vender. Everyone says it=
=20
only takes money and in many cases we could probably include venders on the=
=20
insurance but I cannot recommend committing to it in a long term contract =
=01)=20
we have to arrange the insurance at the time we need it in order to determi=
ne=20
if it is available.=20

If you need to have some language in the agreement, I would recommend that =
we=20
not give the waive and additional insured to GE or any vender. When we need=
=20
the insurance and begin placing it, we can then determine if the underwrite=
r=20
will cover the vender and ask for a price reduction from GE to move their=
=20
risk to the underwriter.

I am sorry I cannot make this easier but that is the nature of the insuranc=
e=20
beast.
Paul