Confidential portions of this document have been omitted and filed
separately with the Securities and Exchange Commission
[Logo]
JARDINE ▇▇▇▇▇
& Company, Inc.
WORKERS' COMPENSATION AND EMPLOYERS LIABILITY
QUOTA SHARE REINSURANCE AGREEMENT
P-102/97
(hereinafter referred to as the "Agreement")
between
PINNACLE ASSURANCE CORPORATION
AMCOMP PREFERRED INSURANCE COMPANY
▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ INSURANCE COMPANY
AMCOMP ASSURANCE COMPANY
North Palm Beach, Florida
and other insurance companies owned, managed, or affiliated with
AmComp Insurance Group
(hereinafter referred to as the "Company")
and
THE SUBSCRIBING REINSURERS SPECIFIED
IN THE INTERESTS AND LIABILITIES CONTRACT
TO WHICH THIS AGREEMENT IS ATTACHED
(hereinafter referred to as the "Reinsurers")
Article I
Business Covered
The Company obliges itself to cede and the Reinsurers oblige themselves to
accept proportional Loss and Loss Adjustment Expense as described in Article
VIII and proportional premium as described in Article IX in respect of Policies
issued by or through Florida Administrative Services and/or Pinnacle
Administrators, Inc during the Term of this Agreement and classified by the
Company as Workers' Compensation and Employers' Liability insurance.
Article II
Term
A. This Agreement shall be effective at 12:01 A.M. Eastern Daylight Time
on October 1, 1997 in respect of Policies then in force as well as new
and renewal Policies accepted thereafter and shall remain in force
until canceled.
B. The Company or the Reinsurers may cancel this Agreement by giving the
other party ninety (90) days prior written notice by registered mail to
be effective December 31, 1998 or any December 31 thereafter. The
Company shall continue to underwrite and accept new and renewal
Policies during the period between notice and effective date of
termination.
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JARDINE ▇▇▇▇▇
& Company, Inc.
C. In the event of termination of this Agreement, at the Company's option:
1. Run-off termination. The Reinsurers shall remain liable in
respect of all Policies then in force at the effective date of
termination until the termination or next anniversary of such
Policies, whichever occurs first, following the effective date
of termination, provided that the run-off period will not
exceed twelve (12) months from the effective date of
termination plus odd time, if any, not to exceed eighteen (18)
months in all; or
2. Cut-off termination. The Company shall relieve the Reinsurers
of all liability hereunder for Losses and Loss Adjustment
Expenses arising from an Occurrence subsequent to the
effective date of termination. If the Company elects cut-off
termination, the Reinsurers shall refund to the Company the
unearned premium applicable to the unexpired liability on
Policies in force minus the commission allowed by the
Reinsurers.
D. Article II-B notwithstanding, either party to this Agreement shall have
the right to cancel this Agreement immediately by giving written notice
to the other parry by registered mail in the event that the other
party:
1. Suffers a reduction of policyholder surplus of 50% or greater
within any Treaty Year, or
2. Is declared insolvent, put in liquidation, or restricted as to
underwriting by any competent regulatory authority or court of
competent jurisdiction.
Termination pursuant to Article II-D does not alter the Company's or its
successor's rights under Article II-C.
Article III
Territory
This Agreement applies within the territorial limits of the Company's policies.
Article IV
Exclusions
This Agreement excludes:
A. All business not classified by the Company as Workers' Compensation
and/or Employer's Liability.
B. Loss or Damage occasioned by war, invasion, hostilities, acts of
foreign enemies, civil war, rebellion, insurrection, military or
usurped power, martial law or confiscation by order of any government
or public authority, as excluded under a standard form of policy
containing a standard War Exclusion Clause.
C. Radioactive contamination arising from nuclear incidents.
D. All business derived from any state-sponsored or mandated Pool,
Association, including Joint Underwriting Associations, Syndicates,
Exchange, Plan or other facility directly as a member, subscriber or
participant, or indirectly by way of reinsurance.
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JARDINE ▇▇▇▇▇
& Company, Inc.
E. Fiduciary Liability arising from the Employee Retirement Income
Security Act of 1974 (ERISA), or amendments thereto when written as
such;
F. Assumed Treaty Reinsurance, except with respect to business assumed
from insurers managed by AmCorp or its subsidiaries.
Article V
Full Reinsurance Clause
A. All amounts ceded hereunder shall be subject to the same gross rates
and to the same conditions and modifications of the Company's policies,
and the Reinsurers shall pay losses as may be paid thereon and shall
follow the settlements of the Company subject to the limits, terms, and
conditions of this Agreement.
B. The Reinsurers shall in every case to which this Agreement applies follow the
fortunes of the Company.
Article VI
Other Reinsurance
A. The Company shall deduct (1) [text omitted pursuant to confidential
treatment request] for limits and/or exposures exceeding five hundred
thousand dollars ($500,000) each and every occurrence plus (2) actual
premiums paid for facultative reinsurance, if any, which inures to the
benefit of this Agreement. The Company may not deduct premiums paid for
facultative reinsurance for limits exceeding five hundred thousand
dollars ($500,000).
B. The Company may at its own expense purchase underlying excess
reinsurance (on a funded basis, an indemnity basis, or any combination
thereof) in respect of its Net Retained Liability and/or the Loss
Corridor described in Article VIII, recoveries under which will be
ignored for the purposes of determining is Net Retained Liability.
Article VII
Definitions
"Gross Ceded Premium" means Gross Subject Unearned Premium plus Gross Subject
Written Premium.
"Gross Net Earned Premium" means Gross Net Unearned Premium at the beginning of
an accounting period plus Gross Net Written Premium during the accounting period
minus Gross Net Unearned Premium at the end of an accounting period.
"Gross Net Unearned Premium" means Gross Subject Unearned Premium minus
deductions allowed pursuant to Article VI.
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JARDINE ▇▇▇▇▇
& Company, Inc.
"Gross Net Written Premium" means Gross Subject Written Premium minus deductions
allowed pursuant to Article VI.
"Gross Subject Earned Premium" means Gross Subject Unearned Premium at the
beginning of a Treaty Year plus Gross Subject Written Premium during a Treaty
Year. In the event of cut-off termination, there will be a deduction of Gross
Subject Unearned Premium returned by the Reinsurers to the Company.
"Gross Subject Unearned Premium" means the reserve for unexpired liability
established in the Company's statutory balance sheets.
"Gross Subject Written Premium" means gross premium accounted as written by the
Company in respect of business ceded hereunder, plus or minus premiums arising
from audit adjustments or retrospective rating adjustments, minus cancellations,
return premiums.
"Loss" means payments and reserves established by the Company as a result of
claims under its Policies.
"Loss Adjustment Expense" means all costs and expenses allocable to specific
claims that are incurred by the Company in the adjustment, evaluation,
investigation, defense, litigation, settlement, and/or appeal of specific
claims, including (a) courts costs and costs of supersedes and appeal bonds, (b)
interest accrued after award or judgment and prejudgment interest awarded
against the insured, and (c) legal expenses and costs incurred by the Company in
connection with coverage questions and legal actions connected thereto. Loss
Adjustment Expenses do not include salaries and expenses of Company officers and
staff adjusters [text omitted pursuant to confidential treatment request].
"Loss Ratio" means ceded Loss and Loss Adjustment Expense divided by ceded Gross
Subject Earned Premium.
"Net Retained Liability" means Loss and Loss Adjustment Expense retained by the
Company after deduction of specific excess reinsurance and salvage and
subrogation recoveries, provided that the Company's Net Retained Liability shall
for the purposes of this Agreement be deemed not to exceed the amount displayed
in Article VI-A (1) each and every Occurrence.
"Occurrence" means each and every event or series of events that gives rise to a
loss payable under the Company's policies.
"Policy" means contracts of insurance or reinsurance including without
limitation oral and written binders pursuant to the terms and conditions of
which the Company is obliged to pay Losses and/or Loss Adjustment Expense.
"Policy dividends" mean dividends declared and paid by the Company during the
term of each Treaty Year of this Agreement, which Policy dividends also arise
from the Gross Net Earned Premium allocated to each such Treaty Year of this
Agreement.
"Treaty Year" means the period from inception through the first date of
termination and, thereafter, each calendar year.
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JARDINE ▇▇▇▇▇
& Company, Inc.
Article VIII
Retention and Cession
A. Retention. The Company shall retain sixty-five per cent (65.0%) of
Losses and Loss Adjustment Expense of its Net Retained Liability up to
but not exceeding five hundred thousand dollars ($500,000) each and
every occurrence plus one hundred per cent (100.0%) of Losses and Loss
Adjustment Expense greater than five hundred thousand dollars
($500,000) each and every occurrence.
B. Loss Corridor. In addition, if the ceded Loss Ratio for any Treaty Year
exceeds sixty-five percent (65.0%), the Company will retain Losses and
Loss Adjustment Expense for which the Reinsurers would otherwise be
liable (but for this Loss Corridor provision) equal to five per cent
(5.0%) of Gross Net Earned Premium.
C. Cession. The Company will cede and the Reinsurers will accept
thirty-five per cent (35.0%) of Losses and Loss Adjustment Expense of
the Company's net retained liability up to but not exceeding five
hundred thousand dollars ($500,000) each and every occurrence, subject
to the Loss Corridor provision contained in Article VIII-B
D. Policy Dividends. The Reinsurers will reimburse the Company for their
proportional share of Policy Dividends as further defined in Article
VII.
E. Adjustment. On or after April 1, 1998 at the start of any calendar
quarter, the Company may adjust its Retention and Cession on a run-off
or cut-off basis, provided that (a) the Retention must be not greater
than seventy-five per cent (75.0%) or less than sixty per cent (60.0%);
and (b) the Company may adjust the Retention only once during each
Treaty Year.
Article IX
Premium and Commission
A. Subject to adjustment as displayed in Article VIII-E, the Company shall
cede thirty-five percent (35.0%) of its Gross Net Unearned Premium at
the inception of this Agreement plus thirty-five per cent (35.0%) of
its Gross Net Written Premium in respect of new and renewal Policies
accepted during the Term of this Agreement.
B. The Reinsurers shall allow the Company to deduct a ceding commission of
thirty-five per cent (35.0%) [text omitted pursuant to confidential
treatment request].
Article X
Accounts and Settlements
A. Quarterly within sixty (60) days of the end of each calendar quarter,
the Company will submit accounts in accordance with Schedule X-A
annexed hereto.
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JARDINE ▇▇▇▇▇
& Company, Inc.
B. Simultaneously with its submission of accounts, the Company will remit any
balance it owes the Reinsurers.
C. The Reinsurers shall remit any balance it owes the Company within
thirty (30) days of its receipt of the Company's quarterly account.
D. Quarterly within seventy-five (75) days of the end of each calendar
quarter, the Company and the Reinsurers shall exchange statutory
financial statements filed with their respective state regulatory
authorities.
Article XI
Offset
Each party hereto shall have, and may exercise at any time and from time to
time, the right to offset any balances, whether on account of premiums or on
account of losses or otherwise, due from such party to the other party hereto
under this Agreement and may offset the same against any balance or balances due
or to become due to the former from the latter under the same Agreement between
them; and the party asserting the right of offset shall have and may exercise
such right whether the balance or balances due or to become due to such party
from the other are on account of premiums or on account of losses or otherwise
and regardless of the capacity, whether as Company or as Reinsurers, in which
each party acted under this Agreement, provided, however, that in the event of
the insolvency of a party hereto, offsets shall only be allowed in accordance
with relevant statutes.
Article XII
Reserves
(This Article applies to Reinsurers: (a) which do not qualify for credit by any
state or any other governmental authority having jurisdiction over the Company's
affairs; or (b) whose rating by A.M. Best drops below "A".)
A. As regards all business coming within the scope of this Agreement, the
Reinsurers agree that, if the Company so requests, the Reinsurers shall
fund its share of the Company's ceded unearned premium and outstanding
loss and loss adjustment expense reserves including incurred but not
reported loss reserves by:
1. Clean, unconditional and irrevocable Letter of Credit issued
by any bank acceptable to the state or other governmental
authority having jurisdiction in this matter, and/or
2. Acceptable escrow accounts for the benefit of the Company,
and/or
3. Cash advances, if, without such funding, a penalty would
accrue to the Company on any financial statement it is
required to file with any insurance regulatory authorities.
B. With regard to funding in whole or in part by Letter of Credit, it is
agreed that each such Letter of Credit will be issued for a term of not
less than one year and will include a so-called "evergreen" clause
which automatically extends the term for at least one additional year
at each expiration date unless thirty (30) days prior to any expiration
date, the issuing bank notifies the Company by certified mail it elects
not to consider the Letter of Credit renewed or extended for any
additional period.
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[Logo]
JARDINE ▇▇▇▇▇
& Company, Inc.
C. The Company and the Reinsurers further agree, notwithstanding anything
to the contrary in this Agreement, that said Letter of Credit may be
drawn upon by the Company or its successors in interest at any time,
without diminution because of the insolvency of the Company or the
Reinsurers, but only for one or more of the following purposes:
1. To reimburse itself for the Reinsure sharers of the
unearned premium paid under this Agreement, and/or
2. To reimburse itself for the Reinsurers' share of the
unearned premium returned or returnable to insureds
upon cancellation of Policies covered under this
Agreement, and/or
3. To pay the Reinsurers' share or to reimburse the
Company for the Reinsurers' share of any liability
for loss reinsured by This Agreement, which is due to
the Company and has not been otherwise paid by the
Reinsurers, and/or
4. To make refund to the Reinsurers of any sum which is
in excess of the actual amounts required to pay the
Reinsurers' obligations under 1, 2, and 3 above.
D. The bank issuing the Letter of Credit shall have no responsibility
whatsoever in connection with the propriety of withdrawals made by the
Company or the disposition of funds withdrawn, except to see that
withdrawals are made only upon the order of properly authorized
representatives of the Company.
E. At annual intervals or more frequently as determined by the Company,
but never more frequently than quarterly, the Company shall prepare a
specific statement, for the sole purpose of amending the Letter of
Credit, and/or the escrow accounts and/or the Reinsurers' cash
advances, of the Reinsurers' share of any obligations. If the statement
shows that the Reinsurers' share of obligations exceeds the balance of
funding as of the statement date, the Reinsurers shall, within thirty
(30) days after receipt of notice of such excess, secure delivery to
the Company of an amendment of the Letter of Credit increasing the
amount of credit by the amount of such difference and/or increase the
balances of the escrow accounts and/or make additional cash advances to
eliminate the difference. If, however, the statement shows that the
Reinsurers' share of obligations is less than the balance of funding as
of the statement date, the Company shall, within thirty (30) days after
receipt of written request from the Reinsurers, release such excess
funding by agreeing to secure an amendment to the Letter of Credit
reducing the amount of credit available and/or returning excess amounts
from escrow accounts and/or cash advances.
F. The rights and obligations of the Company and the Reinsurers, as set
forth in this Article, shall not be diminished in any manner whatsoever
by the insolvency of any party hereto.
Article XIII
Currency
All of the provisions of this Agreement involving dollar amounts are expressed
in terms of United States dollars and all premium and loss payments hereunder
shall be made in United States dollars.
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[Logo]
JARDINE ▇▇▇▇▇
& Company, Inc.
Article XIV
Access to Records
The Company shall place at the disposal of the Reinsurers at all reasonable
times, and the Reinsurers shall have the right to inspect, through its
authorized representatives, all books, records, or papers of the Company in
connection with any reinsurance hereunder, or claims in connection herewith.
Article XV
Errors and Omissions
Any inadvertent neglect, delay, omission or error shall not be held to relieve
the Reinsurers from any liability which would attach to it hereunder if such
neglect, delay, omission or error had not been made, provided the Company
rectifies such neglect, delay, omission, or error upon discovery.
Article XVI
Arbitration
As a condition precedent to any right of action hereunder, any dispute arising
out of this Agreement, whether arising before or after termination, shall be
submitted to the decision of a board of arbitration composed of two arbitrators
and an umpire, meeting in North Palm Beach, FL unless otherwise agreed.
The members of the board of arbitration shall be active or retired disinterested
officials of insurance or reinsurance companies. Each party shall appoint its
arbitrator, and the two arbitrators shall choose an umpire before instituting
the hearing. If the respondent fails to appoint its arbitrator within four weeks
after being requested to do so by the claimant, the latter shall also appoint
the second arbitrator. If the two arbitrators fail to agree upon the appointment
of an umpire within four weeks after their nominations, each of them shall name
three, of whom the other shall decline two, and the decision shall be made by
drawing lots.
The claimant shall submit its initial brief within 20 days from appointment of
the umpire. The respondent shall submit its brief within 20 days thereafter, and
the claimant may submit a reply brief within 10 days after filing of the
respondent's brief.
The board shall make its decision with regard to the custom and usage of the
insurance and reinsurance business. The board shall issue its decision in
writing based upon a hearing in which evidence may be introduced without
following strict rules of evidence but in which cross-examination and rebuttal
shall be allowed. The board shall make its decision within 60 days following the
termination of the hearings unless the parties consent to an extension. The
majority decision of the board shall be final and binding upon all parties to
the proceeding. Judgment may be entered upon the award of the board in any court
having jurisdiction thereof.
If more than one Reinsurer is involved in the same dispute, all such Reinsurers
shall constitute and act as one party for purposes of this clause, and
communications shall be made by the Company to each of the Reinsurers
constituting the one party, provided that nothing therein shall impair the
rights of such Reinsurers to assert several, rather than joint, defenses or
claims, nor be construed as changing the liability of the Reinsurers under the
terms of this Agreement from several to joint.
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JARDINE ▇▇▇▇▇
& Company, Inc.
Each party shall bear the expense of its own arbitrator and shall jointly and
equally bear with the other party the expense of the umpire. The remaining costs
of the arbitration proceedings shall be allocated by the board.
It is agreed that the jurisdiction of the arbitrators to make or render any
decision or award shall be limited by the limit of liability, expressly
hereinbefore set forth, and that the arbitrators shall have no jurisdiction to
make any decision or render any award exceeding such expressly stated limit of
liability of the Reinsurers.
Article XVII
Service of Suit
(This Clause is only applicable to unauthorized Reinsurers, or to the Reinsurers
who are domiciled outside the United States of America.)
It is agreed that in the event of the failure of the Reinsurers to pay any
amount claimed to be due hereunder, the Reinsurers, at the request of the
Company, will submit to the jurisdiction of any Florida State Court and will
comply with all requirements necessary to give such Court jurisdiction, and all
matters arising hereunder shall be determined in accordance with the law of the
state of Florida and practice of such Court. Nothing in this Clause constitutes
or should be understood to constitute a waiver of the Reinsures' rights to
commence an action in any Court of competent jurisdiction in the United States,
to remove an action to a United States District Court, or to seek a transfer of
a case to another Court as permitted by the laws of the United States or of any
State in the United States.
It is further agreed that service of process in such suit may be upon ▇▇▇▇▇▇,
Kukaey, ▇▇▇▇▇▇▇▇, P.A., or anm agreed-upon attorney, and that in any suit
instituted, the Reinsurers will abide by the final decision of such Court or of
any Appellate Court in the event of an appeal.
The above named are authorized and directed to accept service of process on
behalf of the Reinsurers in any such suit and/or upon the request of the Company
to give a written undertaking to the Company that they will enter a general
appearance upon the Reinsurers' behalf in the event such a suit shall be
instituted.
Further, pursuant to any statute of any State, Territory or District of the
United States which makes provision therefor, the Reinsurers hereby designates
the Superintendent, Commissioner or the Director of Insurance or other officer
specified for that purpose in the statute, or his successor or successors in
office, as his true and lawful attorney upon whom may be served any lawful
process in any action, suit or proceeding instituted by or on behalf of the
Company or any beneficiary hereunder arising out of this Agreement, and hereby
designates the above-named as the firm to whom the said officer is authorized to
mail such process or a true copy thereof.
Article XVIII
Insolvency
In the event of the insolvency of the Company, the reinsurance shall be payable
directly to the Company, or to its liquidator, receiver, conservator or
statutory successor on the basis of the liability of the Company without
diminution because of the insolvency of the Company or because the liquidator,
receiver, conservator or statutory successor of the Company has failed to pay
all or a portion of any claim. It is agreed, however, that the liquidator,
receiver, conservator or statutory successor of the Company shall give written
notice to the Reinsurers of the pendency of any claim against the Company
indicating the policy or bond reinsured, which claim would involve a possible
liability on the part of the Reinsurers, within a reasonable time after such
claim
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JARDINE ▇▇▇▇▇
& Company, Inc.
is filed in the conservation or liquidation proceeding or in the receivership
and that during the pendency of such claim, the Reinsurers may investigate such
claim and interpose, at its own expense, in the proceeding where such claim is
to be adjudicated, any defense or defenses that it may deem available to the
Company or its liquidator, receiver, conservator or statutory successor. The
expense thus incurred by the Reinsurers shall be chargeable, subject to the
approval of the court, against the Company as part of the expense of
conservation or liquidation to the extent of a pro rata share of the benefit
which may accrue to the Company solely as a result of the defense undertaken by
the Reinsurers.
Where two or more Reinsurers are involved in the same claim and a majority in
interest elect to interpose defense of such claim, the expense shall be
apportioned in accordance with the terms of this Agreement as though such
expense had been incurred by the Company.
It is further understood and agreed that, in the event of the insolvency of the
Company, the reinsurance under this Agreement shall be payable directly by the
Reinsurers to the Company or to its liquidator, receiver, conservator or
statutory successor, except as provided by the applicable reinsurance regulation
or except (a) where the Agreement specifically provides another payee of such
reinsurance in the event of the insolvency of the Company or (b) where the
Reinsurers with the consent of the direct insured or insureds has assumed such
policy obligations of the Company as direct obligations of the Reinsurers to the
payees under such policies and in substitution for the obligations of the
Company to such payees.
Article XIX
Insolvency Funds Exclusion
This Agreement excludes all liability of the Company arising, by contract,
operation of law, or otherwise, from its participation or membership, whether
voluntary or involuntary, in any insolvency fund. "Insolvency fund" includes any
guaranty fund, insolvency fund, plan, pool, association fund or other
arrangement, howsoever denominated, established or governed, which provides for
any assessment of or payment or assumption by the Company of part or all of any
claim, debt, charge, fee, or other obligation of any insurer, or its successors
or assigns, which has been declared by any competent authority to be insolvent,
or which is otherwise deemed unable to meet any claim, debt, charge, fee or
other obligation in whole or in part.
Article XX
Intermediary
Jardine ▇▇▇▇▇ & Company, Inc., ▇.▇. ▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇-▇▇▇▇, is hereby recognized as the Intermediary negotiating this Agreement
for all business hereunder. All communications (including but not limited to
notices, statements, premiums, return premiums, commissions, taxes, losses, loss
adjustment expense, salvages and loss settlements) relating thereto shall be
transmitted to the Company or the Reinsurers through Jardine ▇▇▇▇▇ & Company,
Inc., ▇.▇. ▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇. Payments made by the
Company to the Intermediary shall constitute payment to the Reinsurers to the
extent of such payments. Payments made by the Reinsurers to the Intermediary
shall only constitute payment to the Company to the extent that such payments
are actually received by the Company.
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JARDINE ▇▇▇▇▇
& Company, Inc.
Schedule X-A
Quarterly account statement
--------------------------------------------------------------------------------
1. Gross Subject Unearned Premium at inception per statutory statement
of Company
--------------------------------------------------------------------------------
2. Excess limits and inuring reinsurance deduction per Article VI
--------------------------------------------------------------------------------
3. Gross Net Unearned Premium at inception (1) - (2)
--------------------------------------------------------------------------------
4. Gross Subject Written Premium
--------------------------------------------------------------------------------
5. Excess limits and inuring reinsurance deduction per Article VI
--------------------------------------------------------------------------------
6. Gross Net Written Premium (4) - (5)
--------------------------------------------------------------------------------
7. Gross Net Ceded Premium [(3) + (6)] x 0.35
--------------------------------------------------------------------------------
8. Ceding Commission Per Article IX-B
--------------------------------------------------------------------------------
9. Net ceded premium (7) - (8)
--------------------------------------------------------------------------------
10.Paid Losses and Loss Adjustment Expenses
--------------------------------------------------------------------------------
11.Policy dividends
--------------------------------------------------------------------------------
▇▇.▇▇▇ balance (9) - (10) - (11)
--------------------------------------------------------------------------------
Memo items
--------------------------------------------------------------------------------
1. Gross Subject Unearned Premium end of period
--------------------------------------------------------------------------------
2. Outstanding Case Loss Reserves
--------------------------------------------------------------------------------
3. Outstanding Case Loss Adjustment Expense Reserve
--------------------------------------------------------------------------------
4. Bulk and IBNR Reserves
--------------------------------------------------------------------------------
Large claims list
--------------------------------------------------------------------------------
List of claims with reported ultimate loss greater than one hundred thousand
dollars ($100,000)
--------------------------------------------------------------------------------
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JARDINE ▇▇▇▇▇
& Company, Inc.
INTERESTS AND LIABILITIES CONTRACT
To the
WORKERS' COMPENSATION AND EMPLOYERS LIABILITY
QUOTA SHARE REINSURANCE AGREEMENT
P-102/97
(hereinafter referred to as the "Agreement")
between
PINNACLE ASSURANCE CORPORATION
AMCOMP PREFERRED INSURANCE COMPANY
▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ INSURANCE COMPANY
AMCOMP ASSURANCE COMPANY
North Palm Beach, Florida
and other insurance companies owned, managed, or affiliated with
AmComp Insurance Group
(hereinafter referred to as the "Company")
and
EVEREST REINSURANCE COMPANY
(hereinafter referred to as the "Subscribing Reinsurer")
It is hereby mutually agreed that the Subscribing Reinsurer shall have a 60.00%
participation in the Interests and Liabilities of the Reinsurers as set forth in
the Agreement attached hereto.
Such participation shall be several and not joint with the participation of
other Subscribing Reinsurers, and the Subscribing Reinsurer shall under no
circumstances participate in the Interests and Liabilities of the other
Reinsurers in said Instrument.
The Contract shall attach 12:01 A.M. Eastern Daylight Time on October 1, 1997
and is subject to the provisions contained in the attached Agreement.
The Agreement to which this Contract is attached, and therefore the interests
and liabilities of the Subscribing Reinsurer therein, may be changed, altered
and amended as the parties may agree; provided such change, alteration and
amendment is evidenced by endorsement to this Contract executed by the Company
and the Subscribing Reinsurer.
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JARDINE ▇▇▇▇▇
& Company, Inc.
IN WITNESS WHEREOF, the parties hereto have caused this Contract to be signed in
duplicate by their duly authorized representatives.
Signed in North Palm Beach, Florida,
This 2nd day of June, 1998.
ATTEST: PINNACLE Assurance CORPORATION
AMCOMP PREFERRED INSURANCE COMPANY
▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ INSURANCE COMPANY
/s/ ▇▇▇▇ ▇. ▇▇▇▇▇ AMCOMP ASSURANCE COMPANY
---------------------------
By:/s/ ▇▇▇ ▇▇▇▇▇▇▇
---------------------------------
Title:CFO
------------------------------
Reference:__________________________
And signed in Calabasas, California,
This 22nd day of May, 1998.
ATTEST: EVEREST REINSURANCE COMPANY
By:/s/ Illegible
---------------------------------
Title: /s/ Illegible
------------------------------
Reference:RA 4555
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JARDINE ▇▇▇▇▇
& Company, Inc.
INTERESTS AND LIABILITIES CONTRACT
To the
WORKERS' COMPENSATION AND EMPLOYERS LIABILITY
QUOTA SHARE REINSURANCE AGREEMENT
P-102/97
(hereinafter referred to as the "Agreement")
between
PINNACLE ASSURANCE CORPORATION
AMCOMP PREFERRED INSURANCE COMPANY
▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ INSURANCE COMPANY
AMCOMP ASSURANCE COMPANY
North Palm Beach, Florida
and other insurance companies owned, managed, or affiliated with
AmComp Insurance Group
(hereinafter referred to as the "Company")
and
EVEREST REINSURANCE COMPANY
(hereinafter referred to as the "Subscribing Reinsurer")
It is hereby mutually agreed that the Subscribing Reinsurer shall have a 40.00%
participation in the Interests and Liabilities of the Reinsurers as set forth in
the Agreement attached hereto.
Such participation shall be several and not joint with the participation of
other Subscribing Reinsurers, and the Subscribing Reinsurer shall under no
circumstances participate in the Interests and Liabilities of the other
Reinsurers in said Instrument.
The Contract shall attach 12:01 A.M. Eastern Daylight Time on October 1, 1997
and is subject to the provisions contained in the attached Agreement.
The Agreement to which this Contract is attached, and therefore the interests
and liabilities of the Subscribing Reinsurer therein, may be changed, altered
and amended as the parties may agree; provided such change, alteration and
amendment is evidenced by endorsement to this Contract executed by the Company
and the Subscribing Reinsurer.
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JARDINE ▇▇▇▇▇
& Company, Inc.
IN WITNESS WHEREOF, the parties hereto have caused this Contract to be signed in
duplicate by their duly authorized representatives.
Signed in North Palm Beach, Florida,
This 16th day of June, 1998.
ATTEST: PINNACLE Assurance CORPORATION
AMCOMP PREFERRED INSURANCE COMPANY
▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ INSURANCE COMPANY
/s/ Illegible AMCOMP ASSURANCE COMPANY
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By:/s/ ▇▇▇ ▇▇▇▇▇▇▇
---------------------------------
Title:CFO
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Reference:__________________________
And signed in Calabasas, California,
This 16th day of June, 1998.
ATTEST: UNDERWRITERS REINSURANCE COMPANY
/s/ Illegible By:/s/ Illegible
----------------------------- ---------------------------------
Title: Senior Vice President
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Reference: 80591178367
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