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EXHIBIT 10.20
FINANCIAL PACIFIC INSURANCE COMPANY
(▇. ▇. ▇▇▇▇▇ INSURANCE COMPANY)
SACRAMENTO, CALIFORNIA
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
Originally Effective: July 1, 1993
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PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
TERMS EFFECTIVE: JULY 1, 1993
issued to
▇. ▇. ▇▇▇▇▇ Insurance Company
Sacramento, California
▇. ▇. ▇▇▇▇▇▇ Co.
Reinsurance Services
▇▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
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PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
▇. ▇. ▇▇▇▇▇ Insurance Company
Sacramento, California
REINSURERS PARTICIPATIONS
Genamerica Management Corp.
(for Generali - U.S. Branch) 12.5%
▇▇▇▇▇▇▇ Global Reinsurance Corporation, U. S. Branch 34.5
Great Lakes Re Management Corporation
(for The Great Lakes Reinsurance Company,
United States Branch) 13.0
SOREMA North America Reinsurance Company 20.0
Winterthur Reinsurance Corporation of America 20.0
TOTAL 100.0%
▇. ▇. ▇▇▇▇▇▇ Co.
Reinsurance Services
▇▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
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TABLE OF CONTENTS
ARTICLE PAGE
I Classes of Business Reinsured 1
II Commencement and Termination 1
III Territory 2
IV Exclusions 2
V Retention and Limit 6
VI Loss in Excess of Policy Limits/ECO 6
VII Other Reinsurance 7
VIII Losses and Loss Adjustment Expenses 7
IX Alternate Payee 8
X Salvage and Subrogation 8
XI Original Conditions 9
XII Provisional Ceding Commission 9
XIII Commission Adjustment 9
XIV Reports and Remittances 11
XV Offset (BRMA 36C) 11
XVI Access to Records (BRMA 1D) 11
XVII Errors and Omissions (BRMA 14F) 12
XVIII Taxes (BRMA 50B) 12
XIX Unauthorized Reinsurers 12
XX Insolvency 13
XXI Arbitration (BRMA 6J) 14
XXII Service of Suit (BRMA 49C) 15
XXIII Intermediary (BRMA 23A) 16
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PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
▇. ▇. ▇▇▇▇▇ Insurance Company
Sacramento, California
(hereinafter referred to as the "Company")
by
The Subscribing Reinsurers Whose Respective
Interests and Liabilities Agreements
Are Attached Hereto
(hereinafter referred to as the "Reinsurer")
ARTICLE I - CLASSES OF BUSINESS REINSURED
A. By this Contract the Company obligates itself to cede to the Reinsurer and
the Reinsurer obligates itself to accept quota share reinsurance of the
Company's net liability under policies, contracts and binders of insurance
or reinsurance (hereinafter called "policies") issued or renewed on or
after the effective date hereof, and classified by the Company as
Commercial Multiple Peril (Section I) and Inland Marine business.
B. "Net liability" as used herein is defined as the Company's gross
liability remaining after cessions, if any, to other pro rata reinsurers.
C. The liability of the Reinsurer with respect to each cession hereunder shall
commence obligatorily and simultaneously with that of the Company, subject
to the terms, conditions and limitation hereinafter set forth.
ARTICLE II - COMMENCEMENT AND TERMINATION
A. This Contract shall become effective on July 1, 1993, with respect to
losses occurring under policies allocated to underwriting years commencing
on or after that date, and shall continue in force thereafter until
terminated.
B. Either party may terminate this Contract on any December 31 by giving the
other party not less than 90 days prior notice by certified mail.
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C. Unless the Company elects to reassume the ceded unearned premium in force
on the effective date of termination, and so notifies the Reinsurer prior
to or as promptly as possible after the effective date of termination,
reinsurance hereunder on business in force on the effective date of
termination shall remain in full force and effect until expiration,
cancellation or next premium anniversary of such business, whichever first
occurs, but in no event beyond 12 months following the effective date of
termination.
D. "Underwriting year" as used herein shall mean the period from July 1, 1993
through December 31, 1994, and each subsequent 12-month period shall be a
separate underwriting year. However, in the event this Contract is
terminated, the final underwriting year shall be from the beginning of the
then current underwriting year through the effective date of termination.
All premiums and losses from policies allocated to an underwriting year
shall be credited or charged, respectively, to such underwriting year,
regardless of the date said premiums earn or such losses occur, it being
understood that a policy will be allocated to the underwriting year which
is in effect as of:
1. As respects all new policies, the effective date of such policies;
2. As respects renewals of one year or less term policies, the renewal
date of such policies;
3. As respects continuous or greater than one year term policies, the
premium anniversary date of such policies.
Such policies shall remain in the same underwriting year, as originally
allocated, until the next renewal date or premium anniversary date, at
which time such policies shall be reallocated to the underwriting year in
effect as of such date as provided in subparagraphs 2 and 3 above.
ARTICLE III - TERRITORY
The liability of the Reinsurer shall be limited to losses under policies
covering property located within the territorial limits of the United States of
America, its territories or possessions, and the District of Columbia; but this
limitation shall not apply to moveable property if the Company's policies
provide coverage when said moveable property is outside the aforesaid
territorial limits.
ARTICLE IV - EXCLUSIONS
A. This Contract does not apply to and specifically excludes the following:
1. Business accepted by the Company as reinsurance from other insurers
except Agency Reinsurance where risk underwriting and all servicing,
including claim handling, is done by the Company.
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2. Any loss or liability accruing to the Company directly or indirectly
from any insurance written by or through any pool or association
including pools or associations in which membership by the Company is
required under any statutes or regulations.
3. 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
guarantee 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 an 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.
4. Any loss or damage which is occasioned by war, invasion, hostilities,
acts of foreign enemies, civil war, rebellion, insurrection, military
or usurped power, or martial law or confiscation by order of any
government or public authority.
5. Business written to apply in excess of a deductible or self-insured
amount of more than $100,000.
6. Aviation liability including aerospace and satellite business.
7. Kidnap and ▇▇▇▇▇▇, Surety, Credit, Financial Guarantee or Fiduciary
Insurance.
8. Liquor law liability except where liquor constitutes less than 50% of
sales. Specifically excluded are bars and retail liquor stores.
9. Insurance written for governmental bodies, municipalities, schools and
colleges.
10. Insurance covering damages claims for the withdrawal, inspection,
repair, replacement or loss of use of the insured's products or of any
property of which such products form a part of, or if such products or
property are withdrawn from the market or from use because of any
known or suspected defect or deficiency therein.
11. Liabilities for property damage from asbestos and/or asbestos
products, including but not limited to liability arising from the
mining, manufacture, installation, transport, storage, habitation or
use of materials, products or structure containing asbestos.
12. Any loss or liability accruing to the Company arising out of the
Employee Retirement Income Security Act of 1974 (ERISA), or amendments
thereto.
13. Insurance against earthquake, when written as such.
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14. Insurance on growing crops.
15. Insurance against flood, surface water, waves, tidal water or tidal
wave, overflow of streams or other bodies of water or spray from any
of the foregoing, all whether driven by wind or not, when written as
such.
16. Liability under coverage specifically afforded for loss or damages
resulting from misappropriation, secretion, conversion, infidelity or
any dishonest act on the part of the insured or other party of
interest, his/her or their employees or agents, or any person or
persons to whom merchandise may be entrusted (carriers for hire
excepted).
17. Liability under coverage afforded for loss or damage resulting from
failure to account or pay for any goods or merchandise sold on credit,
delivered under deferred payment agreements, consigned for sale or
delivered under any trust or floor plan agreements, except under
standard accounts receivable policies.
18. Boiler and Machinery, when written as such.
19. Mortgage impairment insurance and similar kinds of insurance,
howsoever styled, providing coverage to an insured with respect to its
mortgage interest in property or its owner interest in foreclosed
property except that physical and consequential damage will be covered
and not considered mortgage impairment when physical loss, damage or
extra expense is caused by perils insured under the Company's policy
to all real and personal property against which the Company's insured
has granted a mortgage or to which the insured has taken title, or
property in which the insured retains an interest when sold under a
conditional sales agreement, a deed of trust, or any other instrument
whereby title remains in the insured, or the insured's interest in
co-operative loans.
20. Difference in conditions insurance and similar kinds of insurance,
howsoever styled.
21. Risks which have a total insurable value of more than $250,000,000.
22. Mobile homes.
23. Loss and/or damage and/or costs and/or expenses arising from seepage
and/or pollution and/or contamination, other than contamination from
smoke. Nevertheless, this exclusion does not preclude payment of the
cost of removing debris of property damaged by a loss otherwise
covered hereunder, subject always to a limit of 25% of the Company's
property loss under the applicable original policy.
24. Fidelity and Surety Business.
25. Grain elevators.
26. Satellites.
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27. Ocean Marine when written as such.
28. Inland Marine business with respect to the following:
a. All bridges and tunnels;
b. Cargo insurance when written as such with respect to ocean, lake,
or inland waterways vessels;
c. Commercial negative film insurance and cast insurance;
d. Stationary drilling rigs;
e. Furriers' customers' policies;
f. Garment contractors' policies;
g. Insurance on livestock under so-called "mortality policies";
h. Motor Truck Cargo as respects long haul trucking;
i. Jewelers' block policies and furriers' block policies;
j. Mining equipment;
k. Radio and television broadcasting towers;
l. Registered mail insurance when the limit of any one addressee on
any one day is more than $50,000;
m. Watercraft other than watercraft insured under property floaters,
yacht and/or outboard policies provided they are less than 50
feet in length;
n. Petrochemical and utility risks;
o. Transmission and distribution lines.
29. Nuclear risks as defined in the "Nuclear Incident Exclusion
Clause-Physical Damage-Reinsurance" attached to and forming part of
this Contract.
30. Railroad business, specifically insurance for "line" or "track"
operations of actual railroads.
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31. Oil and gas risks, by which is meant drilling rigs, exploration risks,
cracking plants, refineries and depots, oil and gas pipelines,
offshore oil and gas properties.
32. As respects aviation, hull and ingestion.
33. Any liability for property damage caused by the subsidence of land and
arising out or attributable to any operations of the insured.
34. Business classified by the Company as Automobile Physical Damage.
B. If, without the knowledge of a member of the Company's underwriting
department, the Company becomes bound on a risk specifically excluded from
this Contract, such reinsurance as would have been afforded for the risk by
this Contract if the risk had not been excluded shall nevertheless apply to
such risk with respect to losses occurring prior to the 31st day after
discovery by a member of such underwriting department of the existence of
the hazard which makes the exclusion applicable. In case, within such
30-day period, the Company shall have forwarded to the Reinsurer complete
underwriting information and shall have received from the Reinsurer written
notice of its approval of the risk for the policy period reported, the risk
shall be covered hereunder in the same manner as if such risk were not so
excluded, subject, however, to the terms of such notice of approval.
ARTICLE V - RETENTION AND LIMIT
As respects business subject to this Contract, the Company shall retain and be
liable for 30% of its net liability. The Company shall cede to the Reinsurer and
the Reinsurer agrees to accept 70% of the Company's net liability.
ARTICLE VI - LOSS IN EXCESS OF POLICY LIMITS/ECO
A. In the event the Company pays or is held liable to pay an amount of loss in
excess of its policy limit (bailee coverage only), but otherwise within the
terms of its policy (hereinafter called "loss in excess of policy limits")
or any punitive, exemplary, compensatory or consequential damages, other
than loss in excess of policy limits (hereinafter called "extra contractual
obligations") because of alleged or actual bad faith or negligence on its
part in rejecting a settlement within policy limits, or in discharging its
duty to defend or prepare the defense in the trial of an action against its
policyholder, or in discharging its duty to prepare or prosecute an appeal
consequent upon such an action, or in otherwise handling a claim under a
policy subject to this Contract, 90% of the loss in excess of policy limits
and/or 90% of the extra contractual obligations shall be added to the
(Company's loss, if any, under the policy involved, and the sum thereof
(not exceeding, however, $1,000,000) shall be subject to the provisions of
Article V.
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B. An extra contractual obligation shall be deemed to have occurred on the
same date as the loss covered or alleged to be covered under the policy.
C. Notwithstanding anything stated herein, this Contract shall not apply to
any loss in excess of policy limits or any extra contractual obligation
incurred by the Company as a result of any fraudulent and/or criminal act
by any officer or director of the Company acting individually or
collectively or in collusion with any individual or corporation or any
other organization or party involved in the presentation, defense or
settlement of any claim covered hereunder.
D. Recoveries from any form of insurance or reinsurance which protects the
Company against claims the subject matter of this Article shall inure to
the benefit of this Contract.
ARTICLE VII - OTHER REINSURANCE
A. The Company shall have the option to purchase excess of loss reinsurance to
protect its net, recoveries under which to inure solely to the benefit of
the Company and be entirely disregarded in applying all of the provisions
of this Contract.
B. The Company shall purchase or be deemed to have purchased inuring excess
facultative reinsurance to limit its loss subject hereto (inclusive of loss
in excess of policy limits and extra contractual obligations) to $1,000,000
each risk, each loss. However, in the event such reinsurance is purchased,
the Company shall maintain a minimum of 5% of the placement, subject to a
maximum dollar line of $250,000.
ARTICLE VIII - LOSSES AND LOSS ADJUSTMENT EXPENSES
A. Losses shall be reported by the Company in summary form as hereinafter
provided, however, whenever a loss is reserved by the Company for an amount
greater than $100,000, the Company shall notify the Reinsurer. The
Reinsurer shall have the right to participate in the adjustment of losses
subject to this Contract at its own expense.
B. All loss settlements made by the Company, whether under strict policy
conditions or by way of compromise, shall be binding upon the Reinsurer,
and the Reinsurer agrees to pay or allow, as the case may be, its
proportion of each such settlement in accordance with Article XIV. It is
agreed, however, that if the Company's gross loss is equal to or greater
than $100,000, the Reinsurer shall pay its share of said loss as promptly
as possible after receipt of reasonable evidence of the amount paid (or
scheduled to be paid) by the Company.
C. In the event of a claim under a policy subject hereto, the reinsurer shall
be liable for its proportionate share of loss adjustment expenses incurred
by the Company in connection therewith, and shall be credited with its
proportionate share of any recoveries of such expense.
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D. "Loss adjustment expense" means all costs and expenses allocable to a
specific claim that are incurred by the Company in the investigation,
appraisal, adjustment, settlement, litigation, defense or appeal of a
specific claim, including court costs and costs of supersedeas and appeal
bonds, and including 1) prejudgment interest, unless included as part of
the award or judgment; 2) postjudgment interest; 3) legal expenses and
costs incurred in connection with coverage questions and legal actions
connected thereto; and 4) a pro rata share of salaries and expenses of
Company field employees, and expenses of other Company employees who have
been temporarily diverted from their normal and customary duties and
assigned to the field adjustment of losses covered by this Contract. Loss
adjustment expense does not include unallocated loss adjustment expense.
Unallocated loss adjustment expense includes, but is not limited to,
salaries and expenses of employees, other than (4) above and office and
other overhead expenses.
ARTICLE IX - ALTERNATE PAYEE
A. It is understood that in order to make the Company's policies generally
acceptable to certain mortgagees and lending institutions, ▇▇▇▇▇▇▇ Global
Reinsurance Corporation, U.S. Branch, New York, New York (hereinafter
referred to as "▇▇▇▇▇▇▇ Global") has agreed to issue supplemental
reinsurance endorsements which guarantee that ▇▇▇▇▇▇▇ Global will pay valid
claims under any of the Company's policies to which said endorsements are
attached if the Company fails to pay because of its insolvency.
B. Now, therefore, it is agreed that if ▇▇▇▇▇▇▇ Global, under the provisions
of a supplemental reinsurance endorsement, pays or becomes liable to pay
any claim or claims under any policy or policies subject to this Contract,
▇▇▇▇▇▇▇ Global shall be substituted for the Company as payee of any
reinsurance recoverable hereunder in respect of such claim or claims, and
the Reinsurer, upon notice from ▇▇▇▇▇▇▇ Global, shall make payment thereof
directly to ▇▇▇▇▇▇▇ Global.
C. In the event the foregoing provisions apply, all the other provisions of
this Contract shall apply to ▇▇▇▇▇▇▇ Global in the same manner as if
▇▇▇▇▇▇▇ Global were substituted for the Company as the reinsured party
hereunder, and to the extent this Contract reinsures ▇▇▇▇▇▇▇ Global,
coverage hereunder shall be excluded as respects the Company.
ARTICLE X - SALVAGE AND SUBROGATION
The Reinsurer shall be credited with its proportionate share of salvage (i.e.,
reimbursement obtained or recovery made by the Company, less the actual cost,
excluding salaries officials and employees of the Company and sums paid to
attorneys as retainer, of obtaining such reimbursement or making such recovery)
on account of claims and settlements involving reinsurance hereunder. The
Company hereby agrees to enforce its rights to salvage or subrogation relating
to any loss, a part of which loss was sustained by the Reinsurer, and to
prosecute all claims arising out of such rights.
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ARTICLE XI - ORIGINAL CONDITIONS
A. All reinsurance under this Contract shall be subject to the same rates,
terms, conditions and waivers, and to the same modifications and
alterations as the respective policies of the Company. The Reinsurer shall
be credited with its exact proportion of the original premiums collected by
the Company, prior to disbursement of any dividends, but after deduction of
premiums, if any, ceded by the Company for inuring reinsurance.
B. Except as provided in Article IX, nothing herein shall in any manner create
any obligations or establish any rights against the Reinsurer in favor of
any third party or any persons not parties to this Contract.
ARTICLE XII - PROVISIONAL CEDING COMMISSION
The Reinsurer shall allow the Company a 30.0% provisional commission on all
premiums ceded to the Reinsurer hereunder. The Company shall allow the Reinsurer
return commission on return premiums at the same rate.
ARTICLE XIII - COMMISSION ADJUSTMENT
A. The provisional commission allowed the Company shall be adjusted
periodically for each underwriting year in accordance with the provisions
set forth herein. The adjusted commission rate shall be calculated as
follows and be applied to premiums earned for the underwriting year under
consideration:
1. If the ratio of losses incurred to premiums earned is 69.0% or
greater, the adjusted commission rate for the underwriting year under
consideration shall be 23.5%;
2. If the ratio of losses incurred to premiums earned is less than 69.0%,
but not less than 62.5%, the adjusted commission rate for the
underwriting year under consideration shall be 23.5%, plus the
difference in percentage points between 69.0% and the actual ratio of
losses incurred to premiums earned;
3. If the ratio of losses incurred to premiums earned is less than
62.5%, but not less than 47.5%, the adjusted commission rate for the
underwriting year under consideration shall be 30.0%, plus one-half
the difference in percentage points between 62.5% and the actual ratio
of losses incurred to premiums earned;
4. If the ratio of losses incurred to premiums earned is 47.5%, but not
less than 41.0%, the adjusted commission rate for the underwriting
year under consideration shall be 37.5%,
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plus the difference in percentage points between 47.5% and the actual
ratio of losses incurred to premiums earned;
5. If the ratio of losses incurred to premiums earned is 41.0% or less,
the adjusted commission rate for the underwriting year under
consideration shall be 44.0%.
B. If the ratio of losses incurred to premiums, earned for any underwriting
year is greater than 69.0%, the difference in percentage points between the
actual ratio of losses incurred to premiums earned and 69.0% shall be,
multiplied by premiums earned for the underwriting year and the product
shall be carried forward to the next underwriting year as a debit
(addition) to losses incurred. If the ratio of losses incurred to premiums
earned for any underwriting year is less than 41.0%, the difference in
percentage points between 41.0% and the actual ratio of losses incurred to
premiums earned shall be multiplied by premiums earned for the underwriting
year and the product shall be carried forward to the next underwriting year
as a credit to (subtraction from) losses incurred.
C. Within 45 days after the end of each underwriting year the Company shall
calculate and report the adjusted commission on premiums earned for the
underwriting year. If the adjusted commission on premiums earned is less
than commissions previously allowed by the Reinsurer on premiums earned for
the underwriting year, the Company shall remit the difference to the
Reinsurer with its report. If the adjusted commission on premiums earned is
greater than commissions previously allowed by the Reinsurer on premiums
earned for the underwriting year, the Reinsurer shall remit the difference
to the Company as promptly as possible after receipt and verification of
the Company's report.
D. In the event the adjusted commission calculation for any underwriting year
is based partly on ceded reserves for losses and/or loss adjustment
expenses, the adjusted commission shall be recalculated within 45 days
after the end of each subsequent 12-month period until all losses under
policies with effective or renewal dates during the underwriting year have
been settled. Any balance shown to be due either party as a result of any
such recalculation shall be remitted promptly by the other party.
E. "Losses incurred" as used herein shall mean ceded losses and loss
adjustment expenses paid as of the effective date of calculation, plus the
ceded reserves for losses and loss adjustment expenses outstanding as of
the same date, plus (minus) the debit (credit) from the preceding
underwriting year, it being understood and agreed that all losses and
related loss adjustment expenses under policies allocated to the
underwriting year shall be charged to that underwriting year, regardless of
the date said losses actually occur, unless this Contract is terminated on
a "cutoff" basis, in which event the Reinsurer shall have no liability for
losses occurring after the effective date of termination.
F. "Premiums earned" as used herein shall mean ceded net written premiums for
policies allocated to the underwriting year, less the unearned portion
thereof as of the effective date of calculation, it being understood and
agreed that all premiums for policies allocated to an underwriting year
shall be credited to that underwriting year, unless this Contract is
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terminated on a "cutoff" basis, in which event the unearned reinsurance
premium (less previously allowed provisional ceding commission) as of the
effective date of termination shall be returned by the Reinsurer to the
Company.
G. It is expressly agreed that the ceding commission allowed the Company
includes provision for all dividends, commissions and taxes, and all board,
exchange and bureau assessments, and all other expenses of whatever nature,
except loss adjustment expenses.
ARTICLE XIV - REPORTS AND REMITTANCES
A. Within 45 days after the end of each month, the Company shall report to the
Reinsurer:
1. Ceded net written premium for the month by underwriting year;
2. Collected subject premium for the month by underwriting year;
3. Provisional ceding commission allowed on (2) above;
4. Ceded losses and loss adjustment expenses paid during the month (net
of any recoveries during the calendar month under the "cash call"
provisions of Article VIII);
5. Ceded unearned premiums and ceded outstanding loss reserves as of the
end of the month.
The positive balance of (2) less (3) less (4) shall be remitted by the
Company with its report. Any balance shown to be due the Company shall be
remitted by the Reinsurer as promptly as possible after receipt and
verification of the Company's report.
B. Annually, the Company shall furnish the Reinsurer with such information as
the Reinsurer may require to complete its Annual Convention Statement.
ARTICLE XV - OFFSET (BRMA 36C)
The Company and the Reinsurer shall have the right to offset any balance or
amounts due from one party to the other under the terms of this Contract. The
party asserting the right of offset may exercise such right any time whether the
balances due are on account of premiums or losses or otherwise.
ARTICLE XVI - ACCESS TO RECORDS (BRMA 1D)
The Reinsurer or its designated representatives shall have access at any
reasonable time to all records of the Company which pertain in any way to this
reinsurance.
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ARTICLE XVII - ERRORS AND OMISSIONS (BRMA 14F)
Inadvertent delays, errors or omissions made in connection with this Contract or
any transaction hereunder shall not relieve either party from any liability
which would have attached had such delay, error or omission not occurred,
provided always that such error or omission will be rectified as soon as
possible after discovery.
ARTICLE XVIII - TAXES (BRMA 50B)
In consideration of the terms under which this Contract is issued, the Company
will not claim a deduction in respect of the premium hereon when making tax
returns, other than income or profits tax returns, to any state or territory of
the United States of America or the District of Columbia.
ARTICLE XIX - UNAUTHORIZED REINSURERS
A. If the Reinsurer is unauthorized in any state of the United States of
America or the District of Columbia, the Reinsurer agrees to 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, irrevocable and unconditional letters of credit issued and
confirmed, if confirmation is required by the insurance regulatory
authorities involved, by a bank or banks meeting the NAIC Securities
Valuation Office credit standards for issuers of letters of credit and
acceptable to said insurance regulatory authorities; and/or
2. 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 the insurance regulatory
authorities involved. The Reinsurer, at its sole option, may fund in other
than cash if its method and form of funding are acceptable to the insurance
regulatory authorities involved.
B. With regard to funding in whole or in part by letters of credit, it is
agreed that each letter of credit will be in a form acceptable to insurance
regulatory authorities involved, will be issued for a term of at least one
year and will include an "evergreen clause," which automatically extends
the term for at least one additional year at each expiration date unless
written notice of non-renewal is given to the Company not less than 30 days
prior to said expiration date. The Company and the Reinsurer further agree,
notwithstanding anything to
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the contrary in this Contract, that said letters 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 Reinsurer, but
only for one or more of the following purposes:
1. To reimburse itself for the Reinsurer's share of unearned premiums
returned to insureds on account of policy cancellations, unless paid
in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer's share of losses and/or loss
adjustment expenses paid under the terms of policies reinsured
hereunder, unless paid in cash by the Reinsurer;
3. To reimburse itself for the Reinsurer's share of any other amounts
claimed to be due hereunder, unless paid in cash by the Reinsurer;
4. To fund a cash account in an amount equal to the Reinsurer's share of
any ceded unearned premium and/or outstanding loss and loss adjustment
expense reserves (including incurred but not reported loss reserves)
funded by means of a letter of credit which is under non-renewal
notice, if said letter of credit has not been renewed or replaced by
the Reinsurer 10 days prior to its expiration date;
5. To refund to the Reinsurer any sum in excess of the actual amount
required to fund the Reinsurer's share of the Company's ceded unearned
premium and/or outstanding loss and loss adjustment expense reserves
(including incurred but not reported loss reserves), if so requested
by the Reinsurer.
In the event the amount drawn by the Company on any letter of credit is in
excess of the actual amount required for B(1), B(2) or B(4), or in the case
of B(3), the actual amount determined to be due, the Company shall promptly
return to the Reinsurer the excess amount so drawn.
ARTICLE XX - INSOLVENCY
A. In the event of the insolvency of the Company, this reinsurance shall be
payable directly to the Company or to its liquidator, receiver, conservator
or statutory successor immediately upon demand, with reasonable provision
for verification, 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 Reinsurer of the pendency of a claim
against the Company indicating the policy or bond reinsured which claim
would involve a possible liability on the part of the Reinsurer within a
reasonable time after such claim is filed in the conservation or
liquidation proceeding or in the receivership, and that during the pendency
of such claim, the Reinsurer may investigate such claim and interpose, at
its own expense, in the proceeding where such claim is to be adjudicated,
any
Page 13
18
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 Reinsurer 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
Reinsurer.
B. Where two or more reinsurers are involved in the same claim and a majority
in interest elect to interpose defense to such claim, the expense shall be
apportioned in accordance with the terms of this Contract as though such
expense had been incurred by the Company.
C. It is further understood and agreed that, in the event of the insolvency of
the Company, the reinsurance under this Contract shall be payable directly
by the Reinsurer to the Company or to its liquidator, receiver or statutory
successor, except as provided by Section 4118(a) of the New York Insurance
Law or except (a) where this Contract specifically provides another payee
of such reinsurance in the event of the insolvency of the Company or (b)
where the Reinsurer with the consent of the direct insured or insureds has
assumed such policy obligations of the Company as direct obligations of the
Reinsurer to the payees under such policies and in substitution for the
obligations of the Company to such payees.
D. Any hold harmless and indemnity agreement affecting payment under this
Contract shall be considered an endorsement to and therefore part of this
Contract, irrespective of any language to the contrary. Any indemnitee
shall be considered a 'payee' within this Article. In no event shall any
reinsurer have double indemnity for any loss or expense under this
Contract, it being the intent that any payments by the reinsurer to any
payee as provided herein shall not be subject to and also collectible in
any liquidation or similar proceeding.
ARTICLE XXI - ARBITRATION (BRMA 6J)
A. As a condition precedent to any right of action hereunder, in the event of
any dispute or difference of opinion hereafter arising with respect to this
Contract, it is hereby mutually agreed that such dispute or difference of
opinion shall be submitted to arbitration. One Arbiter shall be chosen by
the Company, the other by the Reinsurer, and an Umpire shall be chosen by
the two Arbiters before they enter upon arbitration, all of whom shall be
active or retired disinterested executive officers of insurance or
reinsurance companies or Lloyd's London Underwriters. In the event that
either party should fail to choose an Arbiter within 30 days following a
written request by the other party to do so, the requesting party may
choose two Arbiters who shall in turn choose an Umpire before entering upon
arbitration. If the two Arbiters fail to agree upon the selection of an
Umpire within 30 days following their appointment, each Arbiter shall
nominate three candidates within 10 days thereafter, two of whom the other
shall decline, and the decision shall be made by drawing lots.
B. Each party shall present its case to the Arbiters within 30 days following
the date of appointment of the Umpire. The Arbiters shall consider this
Contract as an honorable engagement rather than merely as a legal
obligation and they are relieved of all judicial
Page 14
19
formalities and may abstain from following the strict rules of law. The
decision of the Arbiters shall be final and binding on both parties; but
failing to agree, they shall call in the Umpire and the decision of the
majority shall be final and binding upon both parties. Judgment upon the
final decision of the Arbiters may be entered in any court of competent
jurisdiction.
C. 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
Article and communications shall be made by the Company to each of the
reinsurers constituting one party, provided, however, that nothing herein
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 participating under the terms of this Contract from several
to joint.
D. Each party shall bear the expense of its own Arbiter, and shall jointly and
equally bear with the other the expense of the Umpire and of the
arbitration. In the event that the two Arbiters are chosen by one party, as
above provided, the expense of the Arbiters, the Umpire and the arbitration
shall be equally divided between the two parties.
E. Any arbitration proceedings shall take place at a location mutually agreed
upon by the parties to this Contract, but notwithstanding the location of
the arbitration, all proceedings pursuant hereto shall be governed by the
law of the state in which the Company has its principal office.
ARTICLE XXII - SERVICE OF SUIT (BRMA 49C) (Applicable if the Reinsurer is not
domiciled in the United States of America, and/or is not authorized in any
State, Territory or District of the United States where authorization is
required by insurance regulatory authorities)
A. It is agreed that in the event the Reinsurer fails to pay any amount
claimed to be due hereunder, the Reinsurer, at the request of the Company,
will submit to the jurisdiction of any court of competent jurisdiction
within the United States. Nothing in this Article constitutes or should be
understood to constitute a waiver of the Reinsurer's 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.
B. Further, pursuant to any statute of any state, territory or district of the
United States which makes provision therefor, the Reinsurer hereby
designates the party named in its Interests and Liabilities Agreement, or
if no party is named therein, the Superintendent, Commissioner or Director
of Insurance or other officer specified for that purpose in the statute, or
his successor or successors in office, as its 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 Contract.
Page 15
20
ARTICLE XXIII - INTERMEDIARY (BRMA 23A)
▇. ▇. ▇▇▇▇▇▇ Co. is hereby recognized as the Intermediary negotiating this
Contract for all business hereunder. All communications (including but not
limited to notices, statements, premium, return premium, commissions, taxes,
losses, loss adjustment expense, salvages and loss settlements) relating thereto
shall be transmitted to the Company or the Reinsurer through ▇. ▇. ▇▇▇▇▇▇ Co.,
Reinsurance Services, ▇▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇.
Payments by the Company to the Intermediary shall be deemed to constitute
payment to the Reinsurer. Payments by the Reinsurer to the Intermediary shall be
deemed to constitute payment to the Company only to the extent that such
payments are actually received by the Company.
IN WITNESS WHEREOF, the Company by its duly authorized representative has
executed this Contract as of the date undermentioned at:
Sacramento, California, this 23rd day of December 1994.
---- --------- --
/s/ [SIG]
-----------------------------
▇. ▇. ▇▇▇▇▇ INSURANCE COMPANY
Page 16
21
U.S.A.
NUCLEAR INCIDENT EXCLUSION CLAUSE - PHYSICAL DAMAGE - REINSURANCE
1. This Reinsurance does not cover any loss or liability accruing to the
Reassured, directly or indirectly and whether as Insurer or Reinsurer, from any
Pool of Insurers or Reinsurers formed for the purpose of covering Atomic or
Nuclear Energy risks.
2. Without in any way restricting the operation of paragraph (1) of this
Clause, this Reinsurance does not cover any loss or liability accruing to the
Reassured, directly or indirectly and whether as Insurer or Reinsurer, from any
insurance against Physical Damage (including business interruption or
consequential loss arising out of such Physical Damage) to:
I. Nuclear reactor power plants including all auxiliary property on the
site, or
II. Any other nuclear reactor installation, including laboratories
handling radioactive materials in connection with reactor
installations, and "critical facilities" as such, or
III. Installations for fabricating complete fuel elements or for processing
substantial quantities of "special nuclear material," and for
reprocessing, salvaging, chemically separating, storing or disposing
of "spent" nuclear fuel or waste materials, or
IV. Installations other than those listed in paragraph (2) III above using
substantial quantities of radioactive isotopes or other products of
nuclear fission.
3. Without in any way restricting the operations of paragraphs (1) and (2)
hereof, this Reinsurance does not cover any loss or liability by radioactive
contamination accruing to the Reassured, directly or indirectly, and whether as
Insurer or Reinsurer, from any insurance on property which is on the same site
as a nuclear reactor power plant or other nuclear installation and which
normally would be insured therewith except that this paragraph (3) shall not
operate
(a) where Reassured does not have knowledge of such nuclear reactor power
plant or nuclear installation, or
(b) where said insurance contains a provision excluding coverage for
damage to property caused by or resulting from radioactive
contamination, however caused. However on and after 1st January 1960
this sub-paragraph (b) shall only apply provided the said radioactive
contamination exclusion provision has been approved by the
Governmental Authority having jurisdiction thereof.
4. Without in any way restricting the operations of paragraphs (1), (2) and
(3) hereof, this Reinsurance does not cover any loss or liability by radioactive
contamination accruing to the Reassured, directly or indirectly, and whether as
Insurer or Reinsurer, when such radioactive contamination is a named hazard
specifically insured against.
5. It is understood and agreed that this Clause shall not extend to risks
using radioactive isotopes in any form where the nuclear exposure is not
considered by the Reassured to be the primary hazard.
6. The term "special nuclear material" shall have the meaning given it in
the Atomic Energy Act of 1954 or by any law amendatory thereof.
7. Reassured to be sole judge of what constitutes:
(a) substantial quantities, and (b) the extent of installation, plant or
site.
Note.-Without in any way restricting the operation of paragraph (1) hereof,
it is understood and agreed that
(a) all policies issued by the Reassured on or before 31st December 1957
shall be free from the application of the other provisions of this
Clause until expiry date or 31st December 1960 whichever first occurs
whereupon all the provisions of this Clause shall apply.
(b) with respect to any risk located in Canada policies issued by the
Reassured on or before 31st December 1958 shall be free from the
application of the other provisions of this Clause until expiry date
or 31st December 1960 whichever first occurs whereupon all the
provisions of this Clause shall apply.
22
INTERESTS AND LIABILITIES AGREEMENT
of
Generali - U.S. Branch
(also known as General Insurance Company
of Trieste and Venice, U.S. Branch)
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
TERMS EFFECTIVE: JULY 1, 1993
issued to
▇. ▇. ▇▇▇▇▇ Insurance Company
Sacramento, California
The Subscribing Reinsurer hereby accepts a 12.5% share in the interests and
liabilities of the "Reinsurer" as set forth in the attached Contract captioned
above.
This Agreement shall become effective on July 1, 1993, and shall continue in
force until terminated in accordance with the provisions of the attached
Contract.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it being understood that the Subscribing
Reinsurer shall in no event participate in the interests and liabilities of the
other reinsurers.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
New York, New York, this 6th day of March 1995.
---- ----- ---
[SIG] VICE PRESIDENT,
--------------------------------------------
Generali - U.S. Branch
(also known as General Insurance Company #3874
of Trieste and Venice, U.S. Branch)
By: Genamerica Management Corp.
23
INTERESTS AND LIABILITIES AGREEMENT
of
▇▇▇▇▇▇▇ Global Reinsurance Corporation,
U.S. Branch
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
TERMS EFFECTIVE: JULY 1, 1993
issued to
▇. ▇. ▇▇▇▇▇ Insurance Company
Sacramento, California
The Subscribing Reinsurer hereby accepts a 34.5% share in the interests and
liabilities of the "Reinsurer" as set forth in the attached Contract captioned
above.
This Agreement shall become effective on July 1, 1993, and shall continue in
force until terminated in accordance with the provisions of the attached
Contract.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it being understood that the Subscribing
Reinsurer shall in no event participate in the interests and liabilities of the
other reinsurers.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
New York, New York, this 14 day of April 1995.
--- -------- ---
[SIG] [SIG]
------------------------------------------------
▇▇▇▇▇▇▇ Global Reinsurance Corporaion, U.S. Branch
By: ▇▇▇▇▇▇▇ Global Offices, Inc., U.S. Manager
24
INTERESTS AND LIABILITIES AGREEMENT
of
The Great Lakes Reinsurance Company
(United States Branch)
New York, New York
by
Great Lakes Re Management Corporation
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
TERMS EFFECTIVE: JULY 1, 1993
issued to
▇. ▇. ▇▇▇▇▇ Insurance Company
Sacramento, California
The Subscribing Reinsurer hereby accepts a 13.0% share in the interests and
liabilities of the "Reinsurer" as set forth in the attached Contract captioned
above.
This Agreement shall become effective on July 1, 1993, and shall continue in
force until terminated in accordance with the provisions of the attached
Contract.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it being understood that the Subscribing
Reinsurer shall in no event participate in the interests and liabilities of the
other reinsurers.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
New York, New York, this 17th day of February 1995.
----- -------- ---
[SIG]
-----------------------------------------
The Great Lakes Reinsurance Company
(United States Branch)
By: Great Lakes Re Management Corporation
25
INTERESTS AND LIABILITIES AGREEMENT
of
SOREMA North America Reinsurance Company
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
TERMS EFFECTIVE: JULY 1, 1993
issued to
▇. ▇. ▇▇▇▇▇ Insurance Company
Sacramento, California
The Subscribing Reinsurer hereby accepts a 20.0% share in the interests and
liabilities of the "Reinsurer" as set forth in the attached Contract captioned
above.
This Agreement shall become effective on July 1, 1993, and shall continue in
force until terminated in accordance with the provisions of the attached
Contract.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it being understood that the Subscribing
Reinsurer shall in no event participate in the interests and liabilities of the
other reinsurers.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
New York, New York, this 9TH day of January 1997.
--- -------- ---
[SIG]
-------------------------------------------------
SOREMA North America Reinsurance Company
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
VICE President & Manager
Treaty Property
26
INTERESTS AND LIABILITIES AGREEMENT
of
Winterthur Reinsurance Corporation of America
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
TERMS EFFECTIVE: JULY 1, 1993
issued to
▇. ▇. ▇▇▇▇▇ Insurance Company
Sacramento, California
The Subscribing Reinsurer hereby accepts a 20.0% share in the interests and
liabilities of the "Reinsurer" as set forth in the attached Contract captioned
above.
This Agreement shall become effective on July 1, 1993, and shall continue in
force until terminated in accordance with the provisions of the attached
Contract.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it being understood that the Subscribing
Reinsurer shall in no event participate in the interests and liabilities of the
other reinsurers.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
New York, New York, this 5th day of April 1995.
--- ------ ---
[SIG]
-------------------------------------------------
Winterthur Reinsurance Corporation of America
27
ANCILLARY AGREEMENT
EFFECTIVE: JULY 1, 1993
issued to
▇. ▇. ▇▇▇▇▇ Insurance Company
Sacramento, California
(hereinafter referred to as the "Company")
by
▇▇▇▇▇▇▇ Global Reinsurance Corporation,
U.S. Branch
New York, New York
(hereinafter referred to as the "Reinsurer")
SECTION 1 - SCOPE OF AGREEMENT
A. In order to make policies of the Company generally acceptable to certain
mortgagees or lending institutions, the Reinsurer hereby authorizes the
Company to attach to its policies a supplemental reinsurance endorsement
reciting, in effect, that the Reinsurer guarantees payment of any valid
first party claim under such policies should the Company fail to pay
because of its insolvency. A copy of the form of supplemental reinsurance
endorsement to be used by the Company is attached to and forms part of this
Agreement.
B. The authority granted herein by the Reinsurer is specifically limited to
property policies (including the property sections of multiple peril
policies) with physical damage limits not exceeding $2,000,000, unless
otherwise mutually agreed, provided such policies are subject to the
Company's Property Quota Share Reinsurance Contract, effective July 1,
1993.
C. The Company shall be responsible for all supplemental reinsurance
endorsements entrusted to it by the Reinsurer, whether issued or not, and
shall only issue supplemental reinsurance endorsements in series.
D. The Company shall investigate and settle or conduct the defense in any and
all claims, or cause the investigation and settlement or defense in any and
all claims to be made according to the terms of its policies in the same
manner as if no supplemental reinsurance endorsement were attached.
However, in the event of the insolvency of the Company, its liquidator,
receiver, conservator or statutory successor shall promptly notify the
Reinsurer of any claim filed against the Company in the conservation or
liquidation proceeding or in the receivership if such claim might involve
liability on the part of the Reinsurer because of the attachment of a
supplemental reinsurance endorsement to a Company policy. During the
Page 1 of 4
28
pendency of such claim, the Reinsurer 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.
E. Should the Reinsurer, as a result of the attachment of a supplemental
reinsurance endorsement to a Company policy, be required to pay a loss
directly to an insured of the Company, the Company or its liquidator,
receiver, conservator or statutory successor agrees to hold the Reinsurer
harmless with respect to such loss and reimburse and indemnify the
Reinsurer for the amount of its net loss (i.e., after all reinsurance
recoveries and salvage).
SECTION 2 - COMMENCEMENT AND TERMINATION
A. This Agreement shall become effective on July 1, 1993, and shall continue
in force thereafter until terminated.
B. This Agreement shall terminate automatically upon termination of the
Company's Property Quota Share Reinsurance Contract, and may be terminated
at any underwriting year anniversary by either party giving the other party
not less than 90 days prior notice by certified mail.
C. In the event that this Agreement is terminated, the Reinsurer shall remain
liable under all supplemental reinsurance endorsements in force on the
effective date of termination until such time as the policies associated
with such supplemental reinsurance endorsements are allocated to a new
underwriting year as set forth in the Property Quota Share Reinsurance
Contract.
SECTION 3 - REINSURANCE WARRANTY
A. The Company warrants that during the currency of this Agreement it will
purchase and maintain in force the following reinsurance on every policy to
which a supplemental reinsurance endorsement is attached:
1. Property Quota Share Reinsurance of 7O% of $1,000,000 any one risk.
2. Excess per risk treaty reinsurance for $200,000 excess of $100,000 any
one risk.
3. Excess per risk treaty reinsurance for $1,000,000 excess of $1,000,000
any one risk.
B. The Company also warrants that the reinsurance referred to in paragraph A
above will in every case include or be endorsed to include provisions
similar in intent to the following:
1. If the Reinsurer, under the provisions of a supplemental reinsurance
endorsement, pays or becomes liable to pay any claim or claims under
any policy or policies subject to the
Page 2 of 4
29
reinsurance, the Reinsurer shall be substituted for the Company as
payee of any reinsurance recoverable thereunder in respect of such
claim or claims, and the reinsurer, upon notice from the Reinsurer,
shall make payment thereof directly to the Reinsurer;
2. In the event the foregoing provisions apply, all the other provisions
of the reinsurance shall apply to the Reinsurer in the same manner as
if the Reinsurer were substituted for the Company as the reinsured
party thereunder, and to the extent the reinsurance reinsures the
Reinsurer, coverage thereunder shall be excluded as respects the
Company.
SECTION 4 - REPORTS AND REMITTANCES
A. Within 45 days after the end of each calendar quarter, the Company shall
prepare and submit a report to the Reinsurer, on forms mutually acceptable,
setting forth the following:
1. Supplemental reinsurance endorsements issued during the calendar
quarter;
2. Supplemental reinsurance endorsements issued and outstanding as of the
end of the calendar quarter.
B. Within 45 days after the end of each calendar quarter, the Company shall
send the Reinsurer a copy of each supplemental reinsurance endorsement
issued, voided or cancelled during the calendar quarter.
SECTION 5 - ACCESS TO RECORDS (BRMA 1D)
The Reinsurer or its designated representatives shall have access at any
reasonable time to all records of the Company which pertain in any way to this
reinsurance.
SECTION 6 - ARBITRATION (BMRA 6J)
A. As a condition precedent to any right of action hereunder, in the event of
any dispute or difference of opinion hereafter arising with respect to this
Agreement, it is hereby mutually agreed that such dispute or difference of
opinion shall be submitted to arbitration. One Arbiter shall be chosen by
the Company, the other by the Reinsurer, and an Umpire shall be chosen by
the two Arbiters before they enter upon arbitration, all of whom shall be
active or retired disinterested executive officers of insurance or
reinsurance companies or Lloyd's London Underwriters. In the event that
either party should fail to choose an Arbiter within 30 days following a
written request by the other party to do so, the requesting party may
choose two Arbiters who shall in turn choose an Umpire before entering upon
arbitration. If the two Arbiters fail to agree upon the selection of an
Umpire within 30 days following their appointment, each Arbiter shall
nominate three candidates within 10 days thereafter, two of whom the other
shall decline, and the decision shall be made by drawing lots.
Page 3 of 4
30
B. Each party shall present its case to the Arbiters within 30 days following
the date of appointment of the Umpire. The Arbiters shall consider this
Agreement as an honorable engagement rather than merely as a legal
obligation and they are relieved of all judicial formalities and may
abstain from following the strict rules of law. The decision of the
Arbiters shall be final and binding on both parties; but failing to agree,
they shall call in the Umpire and the decision of the majority shall be
final and binding upon both parties. Judgment upon the final decision of
the Arbiters may be entered in any court of competent jurisdiction.
C. 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
Article and communications shall be made by the Company to each of the
reinsurers constituting one party, provided, however, that nothing herein
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 participating under the terms of this Agreement from several
to joint.
D. Each party shall bear the expense of its own Arbiter, and shall jointly and
equally bear with the other the expense of the Umpire and of the
arbitration. In the event that the two Arbiters are chosen by one party, as
above provided, the expense of the Arbiters, the Umpire and the arbitration
shall be equally divided between the two parties.
E. Any arbitration proceedings shall take place at a location mutually agreed
upon by the parties to this Agreement, but notwithstanding the location of
the arbitration, all proceedings pursuant hereto shall be governed by the
law of the state in which the Company has its principal office.
SECTION 7 - INTERMEDIARY
▇. ▇. ▇▇▇▇▇▇ Co., Reinsurance Services, ▇▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇,
▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, is hereby recognized as the intermediary by whom this Agreement
was negotiated and through whom all communications relating hereto shall be
transmitted to both parties.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Agreement as of the dates undermentioned at:
Sacramento, California, this 23rd day of December 1994.
---- -------- ---
[SIG]
---------------------------------------------------
▇.▇. ▇▇▇▇▇ Insurance Company
New York, New York, this 10th day of October 1995.
--- -------- --
[SIG]
---------------------------------------------------
▇▇▇▇▇▇▇ Global Reinsurance Corporation, U.S. Branch
By: ▇▇▇▇▇▇▇ Global Offices, Inc., U.S. Manager
Page 4 of 4
31
Supplemental Reinsurance Endorsement
Issued By
▇▇▇▇▇▇▇ GLOBAL REINSURANCE CORPORATION, U.S. BRANCH
New York, New York
This endorsement forms a part of policy no. issued by ▇. ▇. ▇▇▇▇▇ Insurance
Company (hereinafter referred to as the "Company") to the Insured named below:
Named Insured: _________________________________________________________
Insured's Address: _____________________________________________________
Policy Amount: __________________________________________________________
Policy Term: Effective Date: _________ Expiration Date: ______________
Mortgagee: _______________________________________________________________
Mortgagee's Address: _____________________________________________________
For value received, ▇▇▇▇▇▇▇ Global Reinsurance Corporation, U.S. Branch
(hereinafter referred to as the "Reinsurer") agrees that in the event of the
insolvency of the Company, the Reinsurer will immediately become liable for 100%
of any physical damage loss payable by the Company to the Mortgagee under the
policy to which this endorsement is attached (it being understood and agreed
that when this endorsement is attached to a multiple peril policy, it applies
only to Property Coverage Parts thereof). The Reinsurer will make payment
thereof directly to the Mortgagee or Beneficiary under any present or future
mortgage or trust deed, both contingent upon receipt of the proportionate
share(s) of all other participating reinsurers, if any, in the accounts of the
undersigned Reinsurer, subject always to the other terms of the policy. As a
condition precedent to payment hereunder, the Reinsurer shall be subrogated to
all the rights of the Mortgagee or Beneficiary to the extent of such payment.
The Company and the Reinsurer covenant that the provisions of this endorsement
take precedence over any other reinsurance agreement, contract or arrangement
between them to the extent the Reinsurer shall not be subject to duplicate
liability because of any payment or payments made under the terms hereof.
Cancellation of the policy shall automatically and simultaneously cancel this
Endorsement.
The Reinsurer reserves the right to cancel this endorsement upon 30 days prior
notice in writing to the Company, the Insured and the Mortgagee.
▇. ▇. ▇▇▇▇▇ Insurance Company ▇▇▇▇▇▇▇ Global Reinsurance Corporation,
U.S. Branch
By: _______________________________ BY: ________________________________
Title: ___________________________ Title: ______________________________
White-Mortgagee Pink-Insured Blue-▇. ▇. ▇▇▇▇▇ Yellow/Green-Reinsurer
32
ADDENDUM NO. 1
to the
ANCILLARY AGREEMENT
EFFECTIVE: JULY 1, 1993
issued to
▇. ▇. ▇▇▇▇▇ Insurance Company
Sacramento, California
by
▇▇▇▇▇▇▇ Global Reinsurance Corporation,
U.S. Branch
New York, New York
IT IS HEREBY AGREED, effective December 31, 1993, that all references in this
Agreement to "▇. ▇. ▇▇▇▇▇ Insurance Company" shall be amended to read "Financial
Pacific Insurance Company."
The provisions of this Agreement shall remain otherwise unchanged.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Agreement as of the dates undermentioned at:
Sacramento, California, this 23rd day of December 1994.
---- ---------- ---
[SIG]
-------------------------------------------------
Financial Pacific Insurance Company
New York, New York, this 10th day of October 1995.
------ -------- --
[SIG]
-------------------------------------------------
▇▇▇▇▇▇▇ Global Reinsurance Corporation, U.S. Branch
By: ▇▇▇▇▇▇▇ Global Offices, Inc., U.S. Manager
33
SUPPLEMENTAL REINSURANCE ENDORSEMENT
Issued By
▇▇▇▇▇▇▇ GLOBAL REINSURANCE CORPORATION, U. S. BRANCH
New York, New York
This endorsement forms a part of policy no. issued by Financial Pacific
Insurance Company (hereinafter referred to as the "Company") to the Insured
named below:
Name Insured: ____________________________________________________________
Insured's Address: _______________________________________________________
Policy Amount: ___________________________________________________________
Policy Term: Effective Date: ___________ Expiration Date: ____________
Mortgagee: _______________________________________________________________
Mortgagee's Address: _____________________________________________________
For value received, ▇▇▇▇▇▇▇ Global Reinsurance Corporation, U.S. Branch
(hereinafter referred to as the "Reinsurer") agrees that in the event of the
insolvency of the Company, the Reinsurer will immediately become liable for 100%
of any physical damage loss payable by the Company to the Mortgagee under the
policy to which this endorsement is attached (it being understood and agreed
that when this endorsement is attached to a multiple peril policy, it applies
only to Property Coverage Parts thereof). The Reinsurer will make payment
thereof directly to the Mortgagee or Beneficiary under any present or future
mortgage or trust deed, both contingent upon receipt of the proportionate
shares(s) of all other participating reinsurers, if any, in the accounts of the
undersigned Reinsurer, subject always to the other terms of the policy. As a
condition precedent to payment hereunder, the Reinsurer shall be subrogated to
all the rights of the Mortgagee or Beneficiary to the extent of such payment.
The Company and the Reinsurer covenant that the provisions of this endorsement
take precedence over any other reinsurance agreement, contract or arrangement
between them to the extent the Reinsurer shall not be subject to duplicate
liability because of any payment or payments made under the terms hereof.
Cancellation of the policy shall automatically and simultaneously cancel this
Endorsement.
The Reinsurer reserves the right to cancel this endorsement upon 30 days prior
notice in writing to the Company, the Insured and the Mortgagee.
Financial Pacific Insurance Company ▇▇▇▇▇▇▇ Global Reinsurance Corporation
U. S. Branch
By: ________________________________ By: __________________________________
Title: _____________________________ Title: _______________________________
White-Mortgagee Pink-Insured Blue-Financial Pacific Yellow/Green-Reinsurer
34
(Revised: January 1, 1994)
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
▇. ▇. ▇▇▇▇▇ Insurance Company
Sacramento, California
REINSURERS PARTICIPATIONS
Genamerica Management Corp.
(for Generali - U.S. Branch) 12.5%
▇▇▇▇▇▇▇ Global Reinsurance Corporation, U. S. Branch 30.0
San Francisco Reinsurance Company 12.5
SOREMA North America Reinsurance Company 20.0
Sydney Reinsurance Corporation 5.0
Winterthur Reinsurance Corporation of America 20.0
Total 100.0%
▇. ▇. ▇▇▇▇▇▇ Co.
Reinsurance Services
▇▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
35
ADDENDUM NO.1
to the
INTERESTS AND LIABILITIES AGREEMENT
Of
Generali - U.S. Branch
(also known as General Insurance Company
of Trieste and Venice, U.S. Branch)
New York, New York
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
▇. ▇. ▇▇▇▇▇ Insurance Company
Sacramento, California
IT IS HEREBY AGREED that Addendum No. 1 to the Contract shall form part of the
Contract, effective December 31, 1993.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this 23rd day of December 1994.
------ --------- ---
[SIG]
-------------------------------------------------
Financial Pacific Insurance Company
New York, New York, this 6th day of MARCH 1995
--- ---------------
[SIG] VICE PRESIDENT
-------------------------------------------------
Generali - U.S. Branch
(also known as General Insurance Company #3874
of Trieste and Venice, U.S. Branch)
By: Genamerica Management Corp.
36
ADDENDUM NO.1
to the
INTERESTS AND LIABILITIES AGREEMENT
OF
▇▇▇▇▇▇▇ Global Reinsurance Corporation,
U.S. Branch
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
▇. ▇. ▇▇▇▇▇ Insurance Company
Sacramento, California
IT IS HEREBY AGREED that Addendum No. 1 to the Contract shall form part of the
Contract, effective December 31, 1993.
IT IS FURTHER AGREED that the Subscribing Reinsurer's share in the interests and
liabilities of the "Reinsurer" under the Contract shall be decreased from 34.5%
to 30.0%, effective January 1, 1994, with respect to business issued or renewed
on or after that date.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this 23rd day of DECEMBER 1994
------ ------------ --
[SIG]
-------------------------------------------------
Financial Pacific Insurance Company
New York, New York, this 14th day of April 1995
--- ------- ---
[SIG]
-------------------------------------------------
▇▇▇▇▇▇▇ Global Reinsurance Corporation, U.S. Branch
By: ▇▇▇▇▇▇▇ Global Offices, Inc., U.S. Manager
37
TERMINATION ADDENDUM
to the
INTERESTS AND LIABILITIES AGREEMENT
OF
The Great Lakes Reinsurance Company
(United States Branch)
New York, New York
by
Great Lakes Re Management Corporation
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
▇. ▇. ▇▇▇▇▇ Insurance Company
Sacramento, California
IT IS HEREBY AGREED, effective December 31, 1993, that all references in the
Contract to "▇. ▇. ▇▇▇▇▇ Insurance Company" shall be amended to read "Financial
Pacific Insurance Company."
IT IS FURTHER AGREED that this Agreement and the Subscribing Reinsurer's 13.0%
share in the interests and liabilities of the "Reinsurer" under the Contract
shall be terminated on December 31, 1993, in accordance with the "runoff"
provisions of paragraph C of Article II -- Commencement and Termination.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this 23rd day of December 1994
------ -------- --
[SIG]
-------------------------------------------------
Financial Pacific Insurance Company
New York, New York, this 17th day of February 1995.
----- -------- --
[SIG]
-------------------------------------------------
The Great Lakes Reinsurance Company
(United States Branch)
By: Great Lakes Re Management Corporation
38
INTERESTS AND LIABILITIES AGREEMENT
of
San Francisco Reinsurance Company
San Francisco, California
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
(as amended by Addendum No. 1)
issued to and duly executed by
Financial Pacific Insurance Company
Sacramento, California
The Subscribing Reinsurer hereby accepts a 12.5% share in the interests and
liabilities of the "Reinsurer" as set forth in the attached Contract captioned
above.
This Agreement shall become effective on January 1, 1994, with respect to
business issued or renewed on or after that date, and shall continue in force
until terminated in accordance with the provisions of the attached Contract.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it being understood that the Subscribing
Reinsurer shall in no event participate in the interests and liabilities of the
other reinsurers.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
San Francisco, California, this 1st day of December 1995.
---- -------- --
[SIG]
-------------------------------------------------
San Francisco Reinsurance Company
39
Addendum No.1
to the
Interests and Liabilities Agreement
of
SOREMA North America Reinsurance Company
New York, New York
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
▇. ▇. ▇▇▇▇▇ Insurance Company
Sacramento, California
IT IS HEREBY AGREED that Addendum No. 1 to the Contract shall form part of the
Contract, effective December 31, 1993.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this 23rd day of December 1994.
---- -------- ---
[SIG]
-------------------------------------------------
Financial Pacific Insurance Company
New York, New York, this 9th day of January 1992.
--- ------- --
[SIG]
-------------------------------------------------
SOREMA North America Reinsurance Company
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Vice President & Manager
Treaty Property
40
INTERESTS AND LIABILITIES AGREEMENT
of
Sydney Reinsurance Corporation
Philadelphia, Pennsylvania
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
(as amended by Addendum No. 1)
issued to and duly executed by
Financial Pacific Insurance Company
Sacramento, California
The Subscribing Reinsurer hereby accepts a 5.0% share in the interests and
liabilities of the "Reinsurer" as set forth in the attached Contract captioned
above.
This Agreement shall become effective on January 1, 1994, with respect to
business issued or renewed on or after that date, and shall continue in force
until terminated in accordance with the provisions of the attached Contract.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it being understood that the Subscribing
Reinsurer shall in no event participate in the interests and liabilities of the
other reinsurers.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
New York, New York, this 6th day of June 1995.
--- ---- ---
[SIG]
-------------------------------------------------
Sydney Reinsurance Corporation
41
ADDENDUM NO.1
to the
INTERESTS AND LIABILITIES AGREEMENT
of
Winterthur Reinsurance Corporation of America
New York, New York
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
▇. ▇. ▇▇▇▇▇ Insurance Company
Sacramento, California
IT IS HEREBY AGREED that Addendum No. 1 to the Contract shall form part of the
Contract, effective December 31, 1993.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this 23rd day of December l994.
---- -------- ---
[SIG]
-------------------------------------------------
Financial Pacific Insurance Company
New York, New York, this 5th day of April 1995.
--- ---- ---
[SIG]
-------------------------------------------------
Winterthur Reinsurance Corporation of America
42
(Revised: January 1, 1995)
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
▇. ▇. ▇▇▇▇▇ Insurance Company
Sacramento, California
REINSURERS PARTICIPATIONS
Genamerica Management Corp.
(for Generali - U.S. Branch) 15.0%
▇▇▇▇▇▇▇ Global Reinsurance Corporation, U. S. Branch 30.0
The Mercantile and General Reinsurance Company of America 10.0
SOREMA North America Reinsurance Company 20.0
Sydney Reinsurance Corporation 5.0
Winterthur Reinsurance Corporation of America 20.0
TOTAL 100.0%
▇. ▇. ▇▇▇▇▇▇ Co.
Reinsurance Services
▇▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
43
ADDENDUM NO.2
to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
IT IS HEREBY AGREED, effective January 1, 1995, with respect to policies
allocated to underwriting years commencing on or after that date, that this
Contract shall be amended as follows:
1. Article V - Retention and Limit - shall be deleted and the following
substituted therefor:
"ARTICLE V - RETENTION AND LIMIT
A. As respects business subject to this Contract, the Company shall
retain and be liable for 30.0% of its net liability. The Company shall
cede to the Reinsurer and the Reinsurer agrees to accept 70.0% of the
Company's net liability.
B. Notwithstanding the provisions of paragraph A above, the liability of
the Reinsurer for loss hereunder shall not exceed $15,000,000 each
loss occurrence.
C. The term 'loss occurrence' shall mean the sum of all individual losses
directly occasioned by any one disaster, accident or loss or series of
disasters, accidents or losses arising out of one event which occurs
within the area of one state of the United States or province of
Canada and states or provinces contiguous thereto and to one another.
However, the duration and extent of any one 'loss occurrence' shall be
limited to all individual losses sustained by the Company occurring
during any period of 168 consecutive hours arising out of and directly
occasioned by the same event, except that the term "loss occurrence"
shall be further defined as follows:
1. As regards windstorm, hail, tornado, hurricane, cyclone,
including ensuing collapse and water damage, all individual
losses sustained by the Company occurring during any period of 72
consecutive hours arising out of and directly occasioned by the
same event. However, the event need not be limited to one state
or province or states or provinces contiguous thereto.
Page 1
44
2. As regards riot, riot attending a strike, civil commotion,
vandalism and malicious mischief, all individual losses sustained
by the Company occurring during any period of 72 consecutive
hours within the area of one municipality or county and the
municipalities or counties contiguous thereto arising out of and
directly occasioned by the same event. The maximum duration of 72
consecutive hours may be extended in respect of individual losses
which occur beyond such 72 consecutive hours during the continued
occupation of an assured's premises by strikers, provided such
occupation commenced during the aforesaid period.
3. As regards earthquake (the epicentre of which need not
necessarily be within the territorial confines referred to in
paragraph A of this Article) and fire following directly
occasioned by the earthquake, only those individual fire losses
which commence during the period of 168 consecutive hours may be
included in the Company's 'loss occurrence.'
4. As regards 'freeze,' only individual losses directly occasioned
by collapse, breakage of glass and water damage (caused by
bursting frozen pipes and tanks and melting snow) may be included
in the Company's 'loss occurrence.'
Except for those 'loss occurrences' referred to in subparagraphs 1 and
2 above, the Company may choose the date and time when any such period
of consecutive hours commences, provided that it is not earlier than
the date and time of the occurrence of the first recorded individual
loss sustained by the Company arising out of that disaster, accident
or loss, and provided that only one such period of 168 consecutive
hours shall apply with respect to one event.
However, as respects those 'loss occurrences' referred to in
subparagraphs 1 and 2 above, if the disaster, accident or loss
occasioned by the event is of greater duration than 72 consecutive
hours, then the Company may divide that disaster, accident or loss
into two or more 'loss occurrences,' provided that no two periods
overlap and no individual loss is included in more than one such
period, and provided that no period commences earlier than the date
and time of the occurrence of the first recorded individual loss
sustained by the Company arising out of that disaster, accident or
loss.
It is understood that losses arising from a combination of two or more
perils as a result of the same event shall be considered as having
arisen from one 'loss occurrence.' Notwithstanding the foregoing, the
hourly limitations as stated above shall not be exceeded as respects
the applicable perils and no single 'loss occurrence' shall encompass
a time period greater than 168 consecutive hours."
2. Article XII - Provisional Ceding Commission - shall be deleted and the
following substituted therefor:
"The Reinsurer shall allow the Company a 35.0% provisional commission on
all premiums ceded to the Reinsurer hereunder. The Company shall allow the
Reinsurer return commission on return premiums at the same rate."
Page 2
45
3. Subparagraphs 2, 3, 4 and 5 of paragraph A and paragraph B of Article XIII
- ComMission Adjustment - shall be deleted and the following substituted
therefor:
"2. If the ratio of losses incurred to premiums earned is less than 69.0%,
but not less than 57.5%, the adjusted commission rate for the
underwriting year under consideration shall be 23.5%, plus the
difference in percentage points between 69.0% and the actual ratio of
losses incurred to premiums earned;
3. If the ratio of losses incurred to premiums earned is less than 57.5%,
but not less than 42.5%, the adjusted commission rate for the
underwriting year under consideration shall be 35.0%, plus one-half
the difference in percentage points between 57.5% and the actual ratio
of losses incurred to premiums earned;
4. If the ratio of losses incurred to premiums earned is 42.5% or less,
the adjusted commission rate for the underwriting year under
consideration shall be 42.5%."
"B. If the ratio of losses incurred to premiums earned for any
underwriting year is greater than 69.0%, the difference in percentage
points between the actual ratio of losses incurred to premiums earned
and 69.0% shall be multiplied by premiums earned for the underwriting
year, and the product shall be carried forward to the next
underwriting year as a debit (addition) to losses incurred. If the
ratio of losses incurred to premiums earned for any underwriting year
is less than 42.5%, the difference in percentage points between 42.5%
and the actual ratio of losses incurred to premiums earned shall be
multiplied by premiums earned for the underwriting year, and the
product shall be carried forward to the next underwriting year as a
credit to (subtraction from) losses incurred."
The provisions of this Contract shall remain otherwise unchanged.
Page 3
46
ADDENDUM NO.2
TO THE
INTERESTS AND LIABILITIES AGREEMENT
OF
Generali - U.S. Branch
(also known as General Insurance Company
of Trieste and Venice, U.S. Branch)
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
IT IS HEREBY AGREED that Addendum No. 2 to the Contract shall form part of the
Contract, effective January 1, 1995.
IT IS FURTHER AGREED that the Subscribing Reinsurer's share in the interests and
liabilities of the "Reinsurer" under the Contract shall be increased from 12.5%
to 15.0%, effective January 1, 1995, with respect to policies allocated to
underwriting years commencing on or after that date.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this 24th day of February 1996.
---- -------- -
[SIG]
-------------------------------------------------
Financial Pacific Insurance Company
New York, New York, this day of MAR - 6 1996 199 .
--- -------------- --
▇▇▇ ▇ ▇▇▇▇▇
[SIG] Senior Vice President
-------------------------------------------------
Generali - U.S. Branch
(also known as General Insurance Company # 3874
of Trieste and Venice, U.S. Branch)
By: Genamerica Management Corp.
47
ADDENDUM NO. 2
to the
INTERESTS AND LIABILITIES AGREEMENT
of
▇▇▇▇▇▇▇ Global Reinsurance Corporation,
U.S. Branch
New York, New York
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
IT IS HEREBY AGREED that Addendum No. 2 to the Contract shall form part of the
Contract, effective January 1, 1995.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this 26th day of February 1996.
---- -------- ---
[SIG]
-------------------------------------------------
Financial Pacific Insurance Company
New York, New York, this 18th day of March 1996.
---- ----- ---
[SIG] VICE PRESIDENT
-------------------------------------------------
▇▇▇▇▇▇▇ Global Reinsurance Corporation, U.S. Branch
By: ▇▇▇▇▇▇▇ Global Offices, Inc., U.S. Manager
48
INTERESTS AND LIABILITIES AGREEMENT
entered into by and between
Financial Pacific Insurance Company
Sacramento, California
and
The Mercantile and General Reinsurance Company
of America
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
IT IS HEREBY AGREED that the Subscribing Reinsurer shall have a 10.0% share in
the interests and liabilities of the "Reinsurer" as set forth in the attached
Contract entitled:
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
(as amended by Addenda Nos. 1 and 2)
IT IS FURTHER AGREED that this Agreement shall become effective on January 1,
1995, with respect to policies allocated to underwriting years commencing on or
after that date, and shall continue in force until terminated in accordance with
the provisions of the attached Contract.
IT IS ALSO AGREED that the Subscribing Reinsurer's share in the attached
Contract shall be separate and apart from the shares of the other reinsurers,
and shall not be joint with the shares of the other reinsurers, it being
understood that the Subscribing Reinsurer shall in no event participate in the
interests and liabilities of the other reinsurers.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Agreement as of the dates undermentioned at:
Sacramento, California, this 26th day of February 1996.
---- -------- --
[SIG]
-------------------------------------------------
Financial Pacific Insurance Company
Morristown, New Jersey, this 13th day of July 1996.
---- ---- --
[SIG]
-------------------------------------------------
The Mercantile and General Reinsurance Company
of America
49
ADDENDUM NO. 2
to the
INTERESTS AND LIABILITIES AGREEMENT
of
SOREMA North America Reinsurance Company
New York, New York
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
IT IS HEREBY AGREED that Addendum No. 2 to the Contract shall form part of the
Contract, effective January 1, 1995.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this 26th day of February 1996.
---- -------- --
[SIG]
-------------------------------------------------
Financial Pacific Insurance Company
New York, New York, this 9th day of January 1997.
--- ------- --
[SIG]
-------------------------------------------------
SOREMA North America Reinsurance Company
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Vice President & Manager
Treaty Property
50
ADDENDUM NO. 1
to the
INTERESTS AND LIABILITIES AGREEMENT
of
Sydney Reinsurance Corporation
Philadelphia, Pennsylvania
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
IT IS HEREBY AGREED that Addendum No. 2 to the Contract shall form part of the
Contract, effective January 1, 1995.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this 26th day of February 1996.
---- -------- --
[SIG]
-------------------------------------------------
Financial Pacific Insurance Company
New York, New York, this 5th day of April 1996.
--- ----- --
[SIG]
-------------------------------------------------
Sydney Reinsurance Corporation Our Ref #31337
51
ADDENDUM NO. 2
to the
INTERESTS AND LIABILITIES AGREEMENT
of
Winterthur Reinsurance Corporation of America
New York, New York
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
IT IS HEREBY AGREED that Addendum No. 2 to the Contract shall form part of the
Contract, effective January 1, 1995.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this 26th day of February 1996.
---- -------- ---
[SIG]
-------------------------------------------------
Financial Pacific Insurance Company
New York, New York, this 23rd day of September 1996.
---- --------- ---
[SIG]
-------------------------------------------------
Winterthur Reinsurance Corporation of America
52
TERMINATION ADDENDUM
to the
INTERESTS AND LIABILITIES AGREEMENT
of
San Francisco Reinsurance Company
Novato, California
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
IT IS HEREBY AGREED that this Agreement and the Subscribing Reinsurer's 12.5%
share in the interests and liabilities of the "Reinsurer" under the Contract
shall be terminated on December 31, 1994, in accordance with the "runoff"
provisions of paragraph C of Article II -- Commencement and Termination.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this 26th day of February 1996.
--- -------- ---
[SIG]
-------------------------------------------------
Financial Pacific Insurance Company
Novato, California, this 7th day of March 1996.
--- ----- ---
[SIG]
-------------------------------------------------
San Francisco Reinsurance Company
53
(Revised: January 1, 1996)
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
▇. ▇. ▇▇▇▇▇ Insurance Company
Sacramento, California
REINSURERS PARTICIPATIONS
Constitution Reinsurance Corporation 7.5%
Folksamerica Reinsurance Company 7.5
Genamerica Management Corp.
(for Generali - U.S. Branch) 7.5
▇▇▇▇▇▇▇ Global Reinsurance Corporation, U. S. Branch 25.0
The Mercantile and General Reinsurance Company of America 12.5
St. ▇▇▇▇ Reinsurance Management Corporation
(for St. ▇▇▇▇ Fire and Marine Insurance Company) 7.5
SOREMA North America Reinsurance Company 17.5
Winterthur Reinsurance Corporation of America 15.0
Total 100.0%
▇. ▇. ▇▇▇▇▇▇ Co.
Reinsurance Services
▇▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
54
ADDENDUM NO.3
to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
IT IS HEREBY AGREED, effective January 1, 1996, that subparagraph 4 of paragraph
A and paragraph B of Article XIII - Commission Adjustment (as amended by
Addendum No. 2) - shall be deleted and the following substituted therefor:
"4. If the ratio of losses incurred to premiums earned is less than
42.50%, but not less than 40.0%, the adjusted commission rate for the
underwriting year under consideration shall be 42.50%, plus the
difference in percentage points between 42.50% and the actual ratio of
losses incurred to premiums earned;
5. If the ratio of losses incurred to premiums earned is 40.0% or less,
the adjusted commission rate for the underwriting year under
consideration shall be 45.0%."
"B. If the ratio of losses incurred to premiums earned for any
underwriting year is greater than 69.0%, the difference in percentage
points between the actual ratio of losses incurred to premiums earned
and 69.0% shall be multiplied by premiums earned for the underwriting
year, and the product shall be carried forward to the next
underwriting year as a debit (addition) to losses incurred. If the
ratio of losses incurred to premiums earned for any underwriting year
is less than 40.0%, the difference in percentage points between 40.0%
and the actual ratio of losses incurred to premiums earned shall be
multiplied by premiums earned for the underwriting year, and the
product shall be carried forward to the next underwriting year as a
credit to (subtraction from) losses incurred."
The provisions of this Contract shall remain otherwise unchanged.
55
INTERESTS AND LIABILITIES AGREEMENT
entered into by and between
Financial Pacific Insurance Company
Sacramento, California
and
Constitution Reinsurance Corporation
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
IT IS HEREBY AGREED that the Subscribing Reinsurer shall have a 7.5% share in
the interests and liabilities of the "Reinsurer" as set forth in the attached
Contract entitled:
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
(as amended by Addenda Nos. 1, 2 and 3)
IT IS FURTHER AGREED that this Agreement shall become effective on January 1,
1996, with respect to policies allocated to underwriting years commencing on or
after that date, and shall continue in force until terminated in accordance with
the provisions of the attached Contract.
IT IS ALSO AGREED that the Subscribing Reinsurer's share in the attached
Contract shall be separate and apart from the shares of the other reinsurers,
and shall not be joint with the shares of the other reinsurers, it being
understood that the Subscribing Reinsurer shall in no event participate in the
interests and liabilities of the other reinsurers.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Agreement as of the dates undermentioned at:
Sacramento, California, this 5th day of December 1996.
--- -------- ---
[SIG]
-------------------------------------------------
Financial Pacific Insurance Company
New York, New York, this 24th day of February 1997.
---- -------- ---
[SIG]
-------------------------------------------------
Constitution Reinsurance Corporation
56
INTERESTS AND LIABILITIES AGREEMENT
entered into by and between
Financial Pacific Insurance Company
Sacramento, California
and
Folksamerica Reinsurance Company
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
IT IS HEREBY AGREED that the Subscribing Reinsurer shall have a 7.5% share in
the interests and liabilities of the "Reinsurer" as set forth in the attached
Contract entitled:
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
(as amended by Addenda Nos. 1, 2 and 3)
IT IS FURTHER AGREED that this Agreement shall become effective on January 1,
1996, with respect to policies allocated to underwriting years commencing on or
after that date, and shall continue in force until terminated in accordance with
the provisions of the attached Contract.
IT IS ALSO AGREED that the Subscribing Reinsurer's share in the attached
Contract shall be separate and apart from the shares of the other reinsurers,
and shall not be joint with the shares of the other reinsurers, it being
understood that the Subscribing Reinsurer shall in no event participate in the
interests and liabilities of the other reinsurers.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Agreement as of the dates undermentioned at:
Sacramento, California, this 5th day of December 1996.
--- -------- --
[SIG]
-------------------------------------------------
Financial Pacific Insurance Company
New York, New York, this 29th day of January 1997.
---- ------- ---
[SIG]
-------------------------------------------------
Folksamerica Reinsurance Company
57
ADDENDUM NO.3
to the
INTERESTS AND LIABILITIES AGREEMENT
of
Generali - U.S. Branch
(also known as General Insurance Company
of Trieste and Venice, U.S. Branch)
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
IT IS HEREBY AGREED that Addendum No. 3 to the Contract shall form part of the
Contract, effective January 1, 1996.
IT IS FURTHER AGREED that the Subscribing Reinsurer's share in the interests and
liabilities of the "Reinsurer" under the Contract shall be decreased from 15.0%
to 7.5%, effective January 1, 1996, with respect to policies allocated to
underwriting years commencing on or after that date.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this 5th day of December 1996.
--- -------- ---
[SIG]
-------------------------------------------------
Financial Pacific Insurance Company
New York, New York, this 8th day of January 1997.
--- ------- ----
[SIG]
-------------------------------------------------
Generali - U.S. Branch (also known as General Insurance
Company of Trieste and Venice, U.S. Branch)
By: Genamerica Management Corp.
58
ADDENDUM NO. 3
to the
INTERESTS AND LIABILITIES AGREEMENT
of
▇▇▇▇▇▇▇ Global Reinsurance Corporation,
U.S. Branch
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
IT IS HEREBY AGREED that Addendum No. 3 to the Contract shall form part of the
Contract, effective January 1, 1996.
IT IS FURTHER AGREED that the Subscribing Reinsurer's share in the interests and
liabilities of the "Reinsurer" under the Contract shall be decreased from 30.0%
to 25.0%, effective January 1, 1996, with respect to policies allocated to
underwriting years commencing on or after that date.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this 5th day of December 1996.
--- -------- ---
[SIG]
-------------------------------------------------
Financial Pacific Insurance Company
New York, New York, this 18th day of February 1997.
---- -------- ---
[SIG]
-------------------------------------------------
▇▇▇▇▇▇▇ Global Reinsurance Corporation, U.S. Branch
By: ▇▇▇▇▇▇▇ Global Offices, Inc., U.S. Manager
59
ADDENDUM NO.1
to the
INTERESTS AND LIABILITIES AGREEMENT
of
The Mercantile and General Reinsurance Company
of America
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
IT IS HEREBY AGREED that Addendum No. 3 to the Contract shall form part of the
Contract, effective January 1, 1996.
IT IS FURTHER AGREED that the Subscribing Reinsurer's share in the interests and
liabilities of the "Reinsurer" under the Contract shall be increased from 10.0%
to 12.5%, effective January 1, 1996, with respect to policies allocated to
underwriting years commencing on or after that date.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this 5th day of December 1996.
--- -------- ---
[SIG]
-------------------------------------------------
Financial Pacific Insurance Company
Morristown, New Jersey, this 21st day of February 1997.
---- -------- ---
[SIG]
-------------------------------------------------
The Mercantile and General Reinsurance Company
of America
60
INTERESTS AND LIABILITIES AGREEMENT
entered into by and between
Financial Pacific Insurance Company
Sacramento, California
and
St. ▇▇▇▇ Fire and Marine Insurance Company
St. ▇▇▇▇, Minnesota
(hereinafter referred to as the "Subscribing Reinsurer")
IT IS HEREBY AGREED that the Subscribing Reinsurer shall have a 7.5% share in
the interests and liabilities of the "Reinsurer" as set forth in the attached
Contract entitled:
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
(as amended by Addenda Nos. 1, 2 and 3)
IT IS FURTHER AGREED that this Agreement shall become effective on January 1,
1996, with respect to policies allocated to underwriting years commencing on or
after that date, and shall continue in force until terminated in accordance with
the provisions of the attached Contract.
IT IS ALSO AGREED that the Subscribing Reinsurer's share in the attached
Contract shall be separate and apart from the shares of the other reinsurers,
and shall not be joint with the shares of the other reinsurers, it being
understood that the Subscribing Reinsurer shall in no event participate in the
interests and liabilities of the other reinsurers.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Agreement as of the dates undermentioned at:
Sacramento, California, this 5th day of December 1996.
--- -------- ---
[SIG]
-------------------------------------------------
Financial Pacific Insurance Company
New York, New York, this 13th day of January 1997.
---- ------- ---
[SIG]
-------------------------------------------------
St. ▇▇▇▇ Fire and Marine Insurance Company
St. ▇▇▇▇ Reinsurance Management Corporation,
Reinsurance Managers
61
ADDENDUM NO.3
to the
INTERESTS AND LIABILITIES AGREEMENT
of
SOREMA North America Reinsurance Company
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
IT IS HEREBY AGREED that Addendum No. 3 to the Contract shall form part of the
Contract, effective January 1, 1996.
IT IS FURTHER AGREED that the Subscribing Reinsurer's share in the interests and
liabilities of the "Reinsurer" under the Contract shall be decreased from 20.0%
to 17.5%, effective January 1, 1996, with respect to policies allocated to
underwriting years commencing on or after that date.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this 5th day of December 1996.
--- -------- ---
[SIG]
-------------------------------------------------
Financial Pacific Insurance Company
New York, New York, this 26th day of July 1997.
---- ---- ---
[SIG]
-------------------------------------------------
SOREMA North America Reinsurance Company
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Vice President & Manager
Treaty Property
62
ADDENDUM NO.3
to the
INTERESTS AND LIABILITIES AGREEMENT
of
Winterthur Reinsurance Corporation of America
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
IT IS HEREBY AGREED that Addendum No. 3 to the Contract shall form part of the
Contract, effective January 1, 1996.
It IS FURTHER AGREED that the Subscribing Reinsurer's share in the interests and
liabilities of the "Reinsurer" under the Contract shall be decreased from 20.0%
to 15.0%, effective January 1, 1996, with respect to policies allocated to
underwriting years commencing on or after that date.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this 5th day of December 1996.
[SIG]
-------------------------------------------------
Financial Pacific Insurance Company
New York, New York, this 11th day of March 1997.
---- ----- ---
[SIG]
-------------------------------------------------
Winterthur Reinsurance Corporation of America
63
TERMINATION ADDENDUM
to the
INTERESTS AND LIABILITIES AGREEMENT
of
Sydney Reinsurance Corporation
Philadelphia, Pennsylvania
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
IT IS HEREBY AGREED that Addendum No. 3 to the Contract shall form part of the
Contract, effective January 1, 1996.
IT IS FURTHER AGREED that this Agreement and the Subscribing Reinsurer's 5.0%
share in the interests and liabilities of the "Reinsurer" under the Contract
shall be terminated on December 31, 1995, in accordance with the "runoff"
provisions of paragraph C of Article II -- Commencement and Termination.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this 5th day of December 1996.
--- -------- ---
[SIG]
-------------------------------------------------
Financial Pacific Insurance Company
New York, New York, this 24th day of March 1997.
---- ----- ---
[SIG]
-------------------------------------------------
Sydney Reinsurance Corporation
64
ADDENDUM NO.4
to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
(hereinafter referred to as the "Company")
IT IS HEREBY AGREED, effective July 1, 1996, with respect to policies allocated
to underwriting years commencing on or after that date, that this Contract shall
be amended as follows:
1. Paragraph A of Article I - Classes of Business Reinsured - shall be deleted
and the following substituted therefor:
"A. By this Contract the Company obligates itself to cede to the Reinsurer
and the Reinsurer obligates itself to accept quota share reinsurance
of the Company's net liability under policies, contracts and binders
of insurance or reinsurance (hereinafter called 'policies') issued or
renewed on or after the effective date hereof, and classified by the
Company as Commercial Multiple Peril (Section I), Automobile Physical
Damage and Inland Marine business."
2. Subparagraph 22 of paragraph A of Article IV - Exclusions - shall be
deleted and the following substituted therefor:
"22. Mobile Homes unless written as part of a commercial multiple peril
policy."
3. Subparagraph 34 of paragraph A of Article IV - Exclusions - shall be
deleted from this Contract.
4. Paragraph A of Article VI - Loss in Excess of Policy Limits/ECO - shall be
deleted and the following substituted therefor:
"A. In the event the Company pays or is held liable to pay an amount of
loss in excess of its policy limit (bailee coverage only), but
otherwise within the terms of its policy (hereinafter called 'loss in
excess of policy limits') or any punitive, exemplary, compensatory or
consequential damages, other than loss in excess of policy limits
(hereinafter called 'extra contractual obligations') because of
alleged or actual bad faith or negligence on its part in rejecting a
settlement within policy limits, or in discharging
Page 1 of 2
65
its duty to defend or prepare the defense in the trial of an action
against its policyholder, or in discharging its duty to prepare or
prosecute an appeal consequent upon such an action, or in otherwise
handling a claim under a policy subject to this Contract, 90% of the
loss in excess of policy limits and/or 90% of the extra contractual
obligations shall be added to the (Company's loss, if any, under the
policy involved, and the sum thereof (not exceeding, however,
$2,000,000) shall be subject to the provisions of Article V."
5. Paragraph B of Article VII - Other Reinsurance - shall be deleted and the
following substituted therefor:
"B. The Company shall purchase or be deemed to have purchased inuring
excess facultative reinsurance to limit its loss subject hereto
(inclusive of loss in excess of policy limits and extra contractual
obligations) to $2,000,000 each risk, each loss."
IT IS FURTHER AGREED that the Company shall remit to the Reinsurer the ceded
unearned premium in force at 12:01 a.m., October 1, 1996, (less provisional
commission allowed thereon), with respect to Automobile Physical Damage business
in force on October 1, 1995, or issued or renewed on or after October 1, 1995,
as promptly as possible after that date.
The provisions of this Contract shall remain otherwise unchanged.
IN WITNESS WHEREOF, the Company by its duly authorized representative has
executed this Addendum as of the date undermentioned at:
Sacramento, California, this 12th day of June 1997.
---- ---- ---
[SIG]
-------------------------------------------------
Financial Pacific Insurance Company
Page 2 of 2
66
ADDENDUM NO.1
to the
INTERESTS AND LIABILITIES AGREEMENT
of
Constitution Reinsurance Corporation
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
(hereinafter referred to as the "Company")
The Subscribing Reinsurer hereby accepts Addendum No. 4, as duly executed by the
Company, as part of the Contract, effective July 1, 1996.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Addendum as of the date undermentioned at:
New York, New York, this 29th day of July 1997.
---- ---- ---
[SIG]
-------------------------------------------------
Constitution Reinsurance Corporation
67
ADDENDUM NO. 1
to the
INTERESTS AND LIABILITIES AGREEMENT
of
Folksamerica Reinsurance Company
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
(hereinafter referred to as the "Company")
The Subscribing Reinsurer hereby accepts Addendum No. 4, as duly executed by the
Company, as part of the Contract, effective July 1, 1996.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Addendum as of the date undermentioned at:
New York, New York, this 1st day of July 1997.
--- ---- ----
[SIG]
-------------------------------------------------
Folksamerica Reinsurance Company
68
ADDENDUM NO.4
to the
INTERESTS AND LIABILITIES AGREEMENT
of
Generali - U.S. Branch
(also known as General Insurance Company
of Trieste and Venice, U.S. Branch)
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
(hereinafter referred to as the "Company")
The Subscribing Reinsurer hereby accepts Addendum No. 4, as duly executed by the
Company, as part of the Contract, effective July 1, 1996.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Addendum as of the date undermentioned at:
New York, New York, this 8th day of July 1997.
--- ---- ---
[SIG]
-------------------------------------------------
Generali-U.S. Branch
(also known as General Insurance Company
of Trieste and Venice, U.S. Branch)
By: Genamerica Management Corp.
69
ADDENDUM NO.4
to the
INTERESTS AND LIABILITIES AGREEMENT
of
▇▇▇▇▇▇▇ Global Reinsurance Corporation,
U.S. Branch
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
(hereinafter referred to as the "Company")
The Subscribing Reinsurer hereby accepts Addendum No. 4, as duly executed by the
Company, as part of the Contract, effective July 1, 1996.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Addendum as of the date undermentioned at:
New York, New York, this 8th day of July 1997.
--- ---- ---
[SIG]
-------------------------------------------------
VICE PRESIDENT
▇▇▇▇▇▇▇ Global Reinsurance Corporation, U.S. Branch
By: Global Offices, Inc., U.S. Manager
70
ADDENDUM NO.4
to the
INTERESTS AND LIABILITIES AGREEMENT
of
SOREMA North America Reinsurance Company
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
(hereinafter referred to as the "Company")
The Subscribing Reinsurer hereby accepts Addendum No. 4, as duly executed by the
Company, as part of the Contract, effective July 1, 1996.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Addendum as of the date undermentioned at:
New York, New York, this 25th day of July 1997.
---- ---- ---
[SIG]
-------------------------------------------------
SOREMA North America Reinsurance Company
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Vice President & Manager
Treaty Property
71
ADDENDUM NO.1
to the
INTERESTS AND LIABILITIES AGREEMENT
of
St. ▇▇▇▇ Fire and Marine Insurance Company
St. ▇▇▇▇, Minnesota
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
(hereinafter referred to as the "Company")
The Subscribing Reinsurer hereby accepts Addendum No. 4, as duly executed by the
Company, as part of the Contract, effective July 1, 1996.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Addendum as of the date undermentioned at:
New York, New York, this 9th day of July 1997.
--- ---- ---
[SIG]
-------------------------------------------------
St. ▇▇▇▇ Fire and Marine Company
St. ▇▇▇▇ Reinsurance Management Corporation,
Reinsurance Managers
72
ADDENDUM NO.2
to the
INTERESTS AND LIABILITIES AGREEMENT
of
The Mercantile and General Reinsurance Company
of America
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
(hereinafter referred to as the "Company")
The Subscribing Reinsurer hereby accepts Addendum No. 4, as duly executed by the
Company, as part of the Contract, effective July 1, 1996.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Addendum as of the date undermentioned at:
Morristown, New Jersey, this 25th day of August 1997.
---- ------ ---
[SIG]
-------------------------------------------------
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
VICE PRESIDENT
The Mercantile and General Reinsurance Company
of America
73
ADDENDUM NO.4
to the
INTERESTS AND LIABILITIES AGREEMENT
of
Winterthur Reinsurance Corporation of America
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
(hereinafter referred to as the "Company")
The Subscribing Reinsurer hereby accepts Addendum No. 4, as duly executed by the
Company, as part of the Contract, effective July 1, 1996.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Addendum as of the date undermentioned at:
New York, New York, this 16th day of July 1997.
---- ---- ---
[SIG]
-------------------------------------------------
Winterthur Reinsurance Corporation of America
74
(Revised: January 1, 1997)
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
REINSURERS PARTICIPATIONS
Allmerica Re, A Division of The Hanover Insurance Company 10.0%
Constitution Reinsurance Corporation 7.5
Folksamerica Reinsurance Company 7.5
Genamerica Management Corp.
(for Generali - U.S. Branch) 5.0
▇▇▇▇▇▇▇ Global Reinsurance Corporation of America 25.0
St. ▇▇▇▇ Reinsurance Management Corporation
(for St. ▇▇▇▇ Fire and Marine Insurance Company) 7.5
SCOR Reinsurance Company 10.0
SOREMA North America Reinsurance Company 17.5
Winterthur Reinsurance Corporation of America 10.0
TOTAL 100.0%
▇. ▇. ▇▇▇▇▇▇ Co.
Reinsurance Services
▇▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
75
ADDENDUM NO.5
to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
IT IS HEREBY AGREED, effective January 1, 1997, with respect to policies
allocated to underwriting years commencing on or after that date, that this
Contract shall be amended as follows:
1. Subparagraphs 5, 6, 7, 8, 9, 10, 11, 12, 16 and 17 of paragraph A of
Article IV - Exclusions - shall be deleted from this Contract.
2. Subparagraph 19 of paragraph A of Article IV - Exclusions - shall be
deleted and the following substituted therefor:
"19. Mortgage impairment insurance and similar kinds of insurance,
howsoever styled."
3. ▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇, ▇▇(▇), 28(k), 32 and 33 of paragraph A of Article IV -
Exclusions - shall be deleted from this Contract.
4. Paragraph B of Article IV - Exclusions - shall be deleted and the following
substituted therefor:
"B. If, without the knowledge of a member of the Company's underwriting
department, the Company becomes bound on a risk specifically excluded
from this Contract, such reinsurance as would have been afforded for
the risk by this Contract if the risk had not been excluded shall
nevertheless apply to such risk with respect to losses occurring prior
to the 66th day (60 discovery days plus 5 mailing days) after
discovery by a member of such underwriting department of the existence
of the hazard which makes the exclusion applicable. In case, within
such 65 day period (60 discovery days plus 5 mailing days), the
Company shall have forwarded to the Reinsurer complete underwriting
information and shall have received from the Reinsurer written notice
of its approval of the risk for the policy period reported, the risk
shall be covered hereunder in the same manner as if such risk were not
so excluded, subject, however, to the terms of such notice of
approval."
Page 1
76
IT IS FURTHER AGREED, effective January 1, 1997, that this Contract shall be
amended as follows:
1. Paragraph A of Article IX - Alternate Payee - shall be deleted and the
following substituted therefor:
"A. It is understood that in order to make the Company's policies
generally acceptable to certain mortgagees and lending institutions,
▇▇▇▇▇▇▇ Global Reinsurance Corporation of America, New York, New York
(hereinafter referred to as '▇▇▇▇▇▇▇ Global') has agreed to issue
supplemental reinsurance endorsements which guarantee that ▇▇▇▇▇▇▇
Global will pay valid claims under any of the Company's policies to
which said endorsements are attached if the Company fails to pay
because of its insolvency."
2. Article X - Salvage and Subrogation - shall be deleted and the following
substituted therefor:
"ARTICLE X - SALVAGE AND SUBROGATION
The Reinsurer shall be credited with its proportionate share of salvage
(i.e., reimbursement obtained or recovery made by the Company, less the
actual cost, excluding salaries officials and employees of the Company and
sums paid to attorneys as retainer, of obtaining such reimbursement or
making such recovery) on account of claims and settlements involving
reinsurance hereunder."
IT IS ALSO AGREED, effective January 1, 1997, with respect to policies allocated
to underwriting years commencing on or after that date, that Article XII -
Provisional Ceding Commission (as amended by Addendum No. 2) - shall be deleted
and the following substituted therefor:
"ARTICLE XII - PROVISIONAL CEDING COMMISSION
The Reinsurer shall allow the Company a 37.5% provisional commission on all
premiums ceded to the Reinsurer hereunder. The Company shall allow the
Reinsurer return commission on return premiums at the same rate."
IT IS ALSO AGREED, effective January 1, 1997, that this Contract shall be
amended as follows:
1. Subparagraphs 1,2,3,4, and 5 of paragraph A and paragraph B of Article XIII
- Commission Adjustment (as amended by Addendum Nos. 2 and 3) - shall be
deleted and the following substituted therefor:
"1. If the ratio of losses incurred to premiums earned is 67.5% or
greater, the adjusted commission rate for the underwriting year
under consideration shall be 25.0%;
2. If the ratio of losses incurred to premiums earned is less than
67.5%, but not less than 55.0%, the adjusted commission rate for
the underwriting year under
Page 2
77
consideration shall be 25.0%, plus the difference in percentage
points between 67.5% and the actual ratio of losses incurred to
premiums earned;
3. If the ratio of losses incurred to premiums earned is less than
55.0%, but not less than 45.0%, the adjusted commission rate for
the underwriting year under consideration shall be 37.5%, plus
one-half the difference in percentage points between 55.0% and
the actual ratio of losses incurred to premiums earned;
4. If the ratio of losses incurred to premiums earned is less than
45.0%, but not less than 40.0%, the adjusted commission rate for
the underwriting year under consideration shall be 42.5%, plus
the difference in percentage points between 45.0% and the actual
ratio of losses incurred to premiums earned;
5. If the ratio of losses incurred to premiums earned is 40.0% or
less, the adjusted commission rate for the underwriting year
under consideration shall be 47.5%.
B. If the ratio of losses incurred to premiums, earned for any
underwriting year is greater than 67.5%, the difference in percentage
points between the actual ratio of losses incurred to premiums earned
and 67.5% shall be, multiplied by premiums earned for the underwriting
year and the product shall be carried forward to the next underwriting
year as a debit (addition) to losses incurred. If the ratio of losses
incurred to premiums earned for any underwriting year is less than
40.0%, the difference in percentage points between 40.0% and the
actual ratio of losses incurred to premiums earned shall be multiplied
by premiums earned for the underwriting year and the product shall be
carried forward to the next underwriting year as a credit to
(subtraction from) losses incurred."
2. The title portion and paragraph E of Article XXI - Arbitration (BRMA 6J) -
shall be deleted and the following substituted therefor:
"ARTICLE XXI - ARBITRATION"
"E. Any arbitration proceedings shall take place in Sacramento,
California, but notwithstanding the location of the arbitration, all
proceedings pursuant hereto shall be governed by the law of the State
of California."
3. Article XXIII - Intermediary (BRMA 23A) shall be deleted and the following
substituted therefor:
"ARTICLE XXIII - INTERMEDIARY
▇. ▇. ▇▇▇▇▇▇ Co. is hereby recognized as the Intermediary negotiating this
Contract for all business hereunder. All communications (including but not
limited to notices, statements, premium, return premium, commissions,
taxes, losses, loss adjustment expense, salvages and loss settlements)
relating thereto shall be transmitted to the Company or the Reinsurer
Page 3
78
through ▇. ▇. ▇▇▇▇▇▇ Co., Reinsurance Services, ▇▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇,
▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇. Payments by the Company to the Intermediary
shall be deemed to constitute payment to the Reinsurer. Claims notice by
the Company to the Intermediary shall be deemed to constitute notice to the
Reinsurer. Payments by the Reinsurer to the Intermediary shall be deemed to
constitute payment to the Company only to the extent that such payments are
actually received by the Company."
The provisions of this Contract shall remain otherwise unchanged.
Page 4
79
INTERESTS AND LIABILITIES AGREEMENT
entered into by and between
Financial Pacific Insurance Company
Sacramento, California
and
Allmerica Re
A Division of
The Hanover Insurance Company
Bedford, New Hampshire
(hereinafter referred to as the "Subscribing Reinsurer")
IT IS HEREBY AGREED that the Subscribing Reinsurer shall have a 10.0% share in
the interests and liabilities of the "Reinsurer" as set forth in the attached
Contract entitled:
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
(as amended by Addenda Nos. 1 through 5)
IT IS FURTHER AGREED that this Agreement shall become effective on January 1,
1997, with respect to policies allocated to underwriting years commencing on or
after that date, and shall continue in force until terminated in accordance with
the provisions of the attached Contract.
IT IS ALSO AGREED that the Subscribing Reinsurer's share in the attached
Contract shall be separate and apart from the shares of the other reinsurers,
and shall not be joint with the shares of the other reinsurers, it being
understood that the Subscribing Reinsurer shall in no event participate in the
interests and liabilities of the other reinsurers.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Agreement as of the dates undermentioned at:
Sacramento, California, this ___ day of ______________ 199__.
_________________________________________________
Financial Pacific Insurance Company
Florham Park, New Jersey, this ___ day of ____________ 199__.
_________________________________________________
Allmerica Re, A Division of The Hanover
Insurance Company
80
ADDENDUM NO. 2
to the
INTERESTS AND LIABILITIES AGREEMENT
of
Constitution Reinsurance Corporation
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
(hereinafter referred to as the "Company")
The Subscribing Reinsurer hereby accepts Addendum No. 5, as duly executed by the
Company, as part of the Contract, effective January 1, 1997.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Addendum as of the date undermentioned at:
New York, New York, this ___ day of _______________________ 199__.
_________________________________________________
Constitution Reinsurance Corporation
81
ADDENDUM NO. 2
to the
INTERESTS AND LIABILITIES AGREEMENT
of
Folksamerica Reinsurance Company
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
(hereinafter referred to as the "Company")
The Subscribing Reinsurer hereby accepts Addendum No. 5, as duly executed by the
Company, as part of the Contract, effective January 1, 1997.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Addendum as of the date undermentioned at:
New York, New York, this ___ day of __________________________ 199__.
_________________________________________________
Folksamerica Reinsurance Company
82
ADDENDUM NO. 5
to the
INTERESTS AND LIABILITIES AGREEMENT
of
Generali - U.S. Branch
(also known as General Insurance Company
of Trieste and Venice, U.S. Branch)
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
IT IS HEREBY AGREED that Addendum No. 5 to the Contract shall form part of the
Contract, effective January 1, 1997.
IT IS FURTHER AGREED that the Subscribing Reinsurer's share in the interests and
liabilities of the "Reinsurer" under the Contract shall be decreased from 7.5%
to 5.0%, effective January 1, 1997, with respect to policies allocated to
underwriting years commencing on or after that date.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this ___ day of ____________________ 199__.
_________________________________________________
Financial Pacific Insurance Company
New York, New York, this ___ day of ____________________ 199__.
_________________________________________________
Generali - U.S. Branch
(also known as General Insurance Company
of Trieste and Venice, U.S. Branch)
By: Genamerica Management Corp.
83
ADDENDUM NO.5
to the
INTERESTS AND LIABILITIES AGREEMENT
of
▇▇▇▇▇▇▇ Global Reinsurance Corporation,
U.S. Branch
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
(hereinafter referred to as the "Company")
The Subscribing Reinsurer hereby accepts Addendum No. 5, as duly executed by the
Company, as part of the Contract, effective January 1, 1997.
Effective January 1, 1997, all references in this Agreement to "▇▇▇▇▇▇▇ Global
Reinsurance Corporation, U.S. Branch" shall be amended to read "▇▇▇▇▇▇▇ Global
Reinsurance Corporation of America."
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Addendum as of the date undermentioned at:
New York, New York, this ___ day of ____________________ 199__.
_________________________________________________
▇▇▇▇▇▇▇ Global Reinsurance Corporation of America
84
ADDENDUM NO.2
to the
INTERESTS AND LIABILITIES AGREEMENT
of
St. ▇▇▇▇ Fire and Marine Insurance Company
St. ▇▇▇▇, Minnesota
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
(hereinafter referred to as the "Company")
The Subscribing Reinsurer hereby accepts Addendum No. 5, as duly executed by the
Company, as part of the Contract, effective January 1, 1997.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Addendum as of the date undermentioned at:
New York, New York, this ___ day of ____________________ 199__.
_________________________________________________
St. ▇▇▇▇ Fire and Marine Insurance Company
St. ▇▇▇▇ Reinsurance Management Corporation,
Reinsurance Managers
85
INTERESTS AND LIABILITIES AGREEMENT
entered into by and between
Financial Pacific Insurance Company
Sacramento, California
and
SCOR Reinsurance Company
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
IT IS HEREBY AGREED that the Subscribing Reinsurer shall have a 10.0% share in
the interests and liabilities of the "Reinsurer" as set forth in the attached
Contract entitled:
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
(as amended by Addenda Nos. 1 through 5)
IT IS FURTHER AGREED that this Agreement shall become effective on January 1,
1997, with respect to policies allocated to underwriting years commencing on or
after that date, and shall continue in force until terminated in accordance with
the provisions of the attached Contract.
IT IS ALSO AGREED that the Subscribing Reinsurer's share in the attached
Contract shall be separate and apart from the shares of the other reinsurers,
and shall not be joint with the shares of the other reinsurers, it being
understood that the Subscribing Reinsurer shall in no event participate in the
interests and liabilities of the other reinsurers.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Agreement as of the dates undermentioned at:
Sacramento, California, this ___ day of ____________________ 199__.
_________________________________________________
Financial Pacific Insurance Company
South Barrington, Illinois, this ___ day of ____________________ 199__.
_________________________________________________
SCOR Reinsurance Company
86
ADDENDUM NO.5
to the
INTERESTS AND LIABILITIES AGREEMENT
of
SOREMA North America Reinsurance Company
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
(hereinafter referred to as the "Company")
The Subscribing Reinsurer hereby accepts Addendum No. 5, as duly executed by the
Company, as part of the Contract, effective January 1, 1997.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Addendum as of the date undermentioned at:
New York, New York, this ___ day of ____________________ 199__.
_________________________________________________
SOREMA North America Reinsurance Company
87
ADDENDUM NO.5
to the
INTERESTS AND LIABILITIES AGREEMENT
of
Winterthur Reinsurance Corporation of America
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
IT IS HEREBY AGREED that Addendum No. 5 to the Contract shall form part of the
Contract, effective January 1, 1997.
IT IS FURTHER AGREED that the Subscribing Reinsurer's share in the interests and
liabilities of the "Reinsurer" under the Contract shall be decreased from 15.0%
to 10.0%, effective January 1, 1997, with respect to policies allocated to
underwriting years commencing on or after that date.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this this ___ day of ____________________ 199__.
_________________________________________________
Financial Pacific Insurance Company
New York, New York, this ___ day of ____________________ 199__.
_________________________________________________
Winterthur Reinsurance Corporation of America
88
TERMINATION ADDENDUM
to the
INTERESTS AND LIABILITIES AGREEMENT
of
The Mercantile and General Reinsurance Company
of America
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
PROPERTY QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1993
issued to
Financial Pacific Insurance Company
Sacramento, California
IT IS HEREBY AGREED that this Agreement and the Subscribing Reinsurer's 12.5%
share in the interests and liabilities of the "Reinsurer" under the Contract
shall be terminated on December 31, 1996, in accordance with the "runoff"
provisions of paragraph C of Article II - Commencement and Termination.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this ___ day of ____________________ 199__.
_________________________________________________
Financial Pacific Insurance Company
Morristown, New Jersey, this ___ day of ____________________ 199__.
_________________________________________________
The Mercantile and General Reinsurance Company
of America