.,X.vember 9th, 1983
Mr. S.F. Roberts,
B.A.T. Industries,
Windsor House,
50 Victoria Street,
London SWIH ONL
ENGLAND.
S.P.R.
REG'[- ()V 1983
Imasco Limited
4 Westmount Square
Montrel 1. Canada
H3 Z2S8
P.O. Box 6800
Montrdsl. Canada
1,13C 31.4
(514) 937 9111
Cable: eTalimases
Telex: 05 24176
Dear Bob:
RE. PRODUCTS' LIABILITT
With reference to our telephone conversation of
November 7th, 1983,
this latter'vill confirm our interpretation of
Imasco's Liability
coverage, as It applies to bodily injuries and
more specifically
to the diseases of the h,--- body which the
insurance industry
refers to &.9 health hazards.
our Primary Liability Policy No. 6643140,
underwritten by Commercial
Union, contains an exclusion which clearly states
that with respect
to Products Liability, the coverage does not apply
to claims based
upon diseases resulting or alleged having resulted
from consumption
or use of tobacco products. We refer to
Endorsement No. 6 of the
policy for the exact wording of the exclusion
(Appendix 1).
We have been trying for several years to find an
Insurer willing to
underwrite this exposure. In early 1983, when
marking our Umbrella
Liability Insurance Renewal, we asked a few
Insurers to provide us
with quotations. Kansa General Insurance Company
was the Only Insurer
ready to offer the coverage without the Health
Hazard Exclusion. We
asked Kansa :Lf ic could provide a higher limit
than the $10,000,000.
quoted. The Insurer informed us that its
reinsurance markecs would
provide higher limits only if th1t policy excluded
health hazards.
Our Umbrella Liability Insurers is aware of the
exclusion contained in
the primary coverage. Kansa's policy states-
The limit of the Company's liability shall be
$10,000,000.
Single Limit any one occurrence Personal Injury or
Property Damage
or Advertising Liability or any combination
thereof, in excess of:
(1) the amount recoverable under the underlying
insurance as set
out in the attached schedule, or
(2) $10,000. ultimate nat loss in respect of each
occurrence
not covered by, said underlying insurance.
Cont....
r\J
C__
C__
BAT Industries document for Province of British
Columbia 2 November 1999


I ~ e-j E isurer, ~ it ten ':)~ Amer ican Home,
$30, OCO, 000
f S 1.), 000, 000. also excludes heal th hazard.5
Eor
-:co prod,icts, (Appendix 2 attached hereto)
I trust that the above explanations vi.11 be
helpful.
Yours sincere-ly,
P. Turcotte
Risk Tnsurance Manager
rQ
c::)
r\3
(-4
LP4
CZ?
Cza
BAT Industries document for Province of British
Columbia 2 November 1999