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EXHIBIT 10.9
AMENDMENT NO. 1
to the
POLICY LIFE CYCLE
SERVICES AGREEMENT
CLARENDON
Effective: August 15, 1996
by and between
MILLERS INTEGRATED CLAIMS RESOURCES, INC.
d/b/a MiliRisk
("MiliRisk")
and
BLANCH WHOLESALE INSURANCE SERVICES, INC.
and
BLANCH INSURANCE SERVICES, INC.
("Customer")
WHEREAS, MiliRisk and Customer have entered into this Agreement for the
administration of certain insurance policies to be issued by Clarendon National
Insurance Company ("Clarendon");
WHEREAS, Customer entered into this Agreement based on certain assumptions
regarding the anticipated premium and coverages under said policies;
WHEREAS, certain of said assumptions have proven to be incorrect in practice,
after the negotiation and inception of this Agreement; and
WHEREAS, the parties, as a result, have agreed to amend this Agreement by
adjusting certain provisions retroactively and prospectively, to more
appropriately reflect the actual operations under the Agreement;
NOW, THEREFORE, Customer and MiliRisk hereby agree as follows:
1. Effective retroactively to the inception of this Agreement, and for the
entire remaining term of the Agreement, including any renewals, the
$56.00 per policy minimum and the 50,000 annualized policy
minimum, as expressed in Exhibit II - Services Rates, shall be
eliminated. In consideration for this, Customer shall pay to MiliRisk
$886,000 as promptly as possible after agreement to the terms of this
Amendment.
2. Effective at June 1, 1997, with respect to direct written premium
collected on or after that date, the service rate of 6.5% of Direct
Written Premium, as expressed in Exhibit II -
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Services Rates, shall be increased to 7.0% of Direct Written Premium.
Effective November 15, 1997, said service rate shall be further
increased to 7.25% of Direct Written premium, provided that
Clarendon has not received approval from the Florida Department of
Insurance of a rate increase on the subject policies of at least 10% by
January 15, 1998.
The provisions of this Agreement shall remain otherwise unchanged.
MILIRISK AND CUSTOMER CERTIFY BY THEIR UNDERSIGNED AUTHORIZED AGENT THAT THEY
HAVE READ THIS AMENDMENT AND AGREE TO BE BOUND BY ITS TERMS AND CONDITIONS.
Millers Integrated Claims Resources, Inc. Blanch Wholesale Insurance Services, Inc.
Blanch Insurance Services, Inc.
By: By:
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Name: Name:
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Title: Title:
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