Contingent Excess of Loss
Reinsurance Contract
Effective: July 1, 1998
issued to
Condor Insurance Company
Amwest Surety Insurance Company
and
Far West Insurance Company
all of Omaha, Nebraska
(hereinafter referred to collectively as the "Company")
by
The Subscribing Reinsurer(s) Executing the
Interests and Liabilities Agreement(s)
Attached Hereto
(hereinafter referred to as the "Reinsurer")
Article I - Classes of Business Reinsured
A. By this Contract the Reinsurer agrees to reinsure the excess liability
which may accrue to the Company under its 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 the following:
1. Casualty business, including but not limited to Commercial
Automobile Liability and General Liability;
2. Extra contractual obligations and/or loss in excess of policy limits
arising under events from Private Passenger Auto, Homeowners, Mobile
Homeowners and Motorcycle business;
subject to the terms, conditions and limitations hereinafter set forth.
B. It is understood that the classes of business reinsured under this Contract
are deemed to include:
1. Coverages required for non-resident drivers under the motor vehicle
financial responsibility law or the motor vehicle compulsory
insurance law or any similar law of any state or province,
following the provisions of the Company's
policies when they include or are deemed to include so-called "Out
of State Insurance" provisions;
2. Coverages required under Section 30 of the Motor Carrier Act of
1980 and/or any amendments thereto.
Article II - Term
A. This Contract shall become effective on July 1, 1998, with respect to
losses under policies allocated to this Contract in accordance with the
provisions of paragraph C below, and shall continue in force until June
30, 1999, both days inclusive.
B. Unless the Company elects to reassume the ceded unearned
premium in force on the effective date of expiration, and so
notifies the Reinsurer prior to or as promptly as possible
after the effective date of expiration, reinsurance
hereunder on business in force on the effective date of
expiration shall remain in full force and effect until
expiration, cancellation or next premium anniversary date of
such business, whichever first occurs, but in no event
beyond 12 months following the effective date of expiration.
This limitation, however, shall not apply to any extended
reporting period provisions. It is understood and agreed
that the term "premium anniversary date" shall mean the
month and day of the year on which the Company issued the
original policy.
C. Notwithstanding the provisions of paragraph B above, policies shall be
allocated to this Contract if this Contract is in effect as of:
1. As respects all new policies, the effective date of such policies;
2. As respects monthly continuous policies, the monthly renewal date of
such policies;
3. As respects all other term policies not greater than 12 months, the
premium anniversary date of such policies;
4. As respects all term policies greater than 12 months, the premium
anniversary date of such policies.
All premiums and losses (and related loss adjustment expenses) from
policies allocated to this Contract shall be credited or charged,
respectively, to this Contract, regardless of the date said premiums earn
or such losses occur (or the date said claims are made or reported, as
respects claims made policies). Premiums, losses and related loss
adjustment expenses for any extended reporting period provisions shall be
allocated to this Contract if the original policy was allocated to this
Contract.
Article III - Territory
This Contract shall only apply to policies issued to insureds domiciled in the
United States of America, its territories and possessions, Puerto Rico and the
District of Columbia; but this limitation shall not apply to losses if the
Company's policies provide coverage outside the aforesaid territorial limits.
Article IV - Exclusions
A. This Contract does not apply to and specifically excludes the following:
1. All reinsurance assumed other than reinsurance which covers business
underwritten by the Company.
2. Business written by the Company on a co-indemnity basis where the
Company is not the controlling carrier.
3. All liability of the Company arising by contract, operation
of law, or otherwise, from its participation or membership,
whether voluntary or involuntary, in any insolvency fund.
"Insolvency fund" includes any guaranty fund, insolvency
fund, plan, pool, association, fund or other arrangement,
however 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. Pollution as excluded by the underlying Policy - "Pollution
Exclusion - Absolute"; if not present, then deemed to be. However,
this exclusion shall not apply to Environmental Restoration
Coverages provided under MCS 90 Endorsement, which is required for
those insureds maintaining ICC filings, or to the Company
endorsement CA 99 48 as respects business classified by the Company
as residential trash haulers.
5. Hazardous Waste Operations (except when exposure is unknown or
unintended).
6. Liability as a member, subscriber or reinsurer of any Pool,
Syndicate or Association, but this exclusion shall not apply to
Assigned Risk Plans or similar plans.
7. Nuclear risks as defined in the "Nuclear Incident Exclusion Clause -
Liability - Reinsurance"
attached to and forming part of this Contract.
8. Automobile Liability Insurance relating to the ownership,
maintenance, or use of trucks used for transporting commodities such
as explosives, munitions, gasoline, or liquefied petroleum gas
(LPG), including butane and propane. It is understood and agreed
that this exclusion shall not apply to those insureds involved in
the removal of soils saturated with gasoline or petroleum products.
B. If the Company is bound, without the knowledge and contrary to the
instructions of the Company's supervisory underwriting personnel, on any
business falling within the scope of one or more of the exclusions set
forth in paragraph A above, the exclusion shall be suspended with respect
to such business until 30 days after an underwriting supervisor of the
Company acquires knowledge thereof.
C. If the Company is required to accept an assigned risk which conflicts with
one or more of the exclusions set forth in paragraph A above, reinsurance
shall apply, but only for the difference between the Company's retention
and the minimum limit required by the applicable state statute, and in no
event shall the Reinsurer's liability exceed the limits set forth in
Article V.
Article V - Retention and Limit
A. Coverage A: As respects Casualty business, including but not limited to
Commercial Automobile Liability and General Liability business subject to
this Contract, the Company shall retain and be liable for the first
$1,000,000 of ultimate net loss (whether involving any one or any
combination of the classes of business covered hereunder) arising out of
any one occurrence. The Reinsurer shall then be liable for the amount by
which such ultimate net loss exceeds the Company's retention, but the
liability of the Reinsurer shall not exceed $1,000,000 as respects any one
occurrence, nor shall it exceed $3,000,000 as respects all losses arising
out of occurrences commencing during the term of this Contract.
B. Coverage B: As respects extra contractual obligations and/or loss
in excess of policy limits arising under events from Private Passenger
Auto, Homeowners, Mobile Homeowners and Motorcycle business subject to this
Contract, the Company shall retain and be liable for the first $250,000 of
ultimate net loss (whether involving any one or any combination of the
classes of business covered hereunder) arising out of any one occurrence.
The Reinsurer shall then be liable for the amount by which such ultimate
net loss exceeds the Company's retention, but the liability of the
Reinsurer shall not exceed $750,000 as respects any one occurrence, nor
shall it exceed $2,250,000 as respects all extra contractual obligations
and/or loss in excess of policy limits arising during the term of this
Contract.
It is understood that the ultimate net loss referred to in this paragraph
B shall be made up only of extra contractual obligations and loss in
excess of policy limits.
C. The Company shall purchase or be deemed to have purchased inuring
reinsurance to limit its ultimate net loss under any one policy subject to
Coverage A (exclusive of loss in excess of policy limits or extra
contractual obligations) to $1,000,000 each occurrence, Combined Single
Limit.
D. The amount shown in paragraph C above shall be extended to follow the
Company's policy if the Company's ultimate net loss is greater than said
amount because its policy includes or is deemed to include:
1. So-called "Out of State Insurance" provisions;
2. Limits of liability required under Section 30 of the Motor Carrier
Act of 1980 and/or any amendments
thereto.
Article VI - Definitions
A. "Ultimate net loss" as used herein is defined as the sum or
sums (including loss in excess of policy limits, extra contractual
obligations and any loss adjustment expense, as hereinafter defined,
which reduces the Company's limit of liability under the policy
involved) paid or payable by the Company in settlement of claims and
in satisfaction of judgments rendered on account of such claims, after
deduction of all salvage, all recoveries and all claims on inuring
insurance or reinsurance, whether collectible or not. Nothing herein
shall be construed to mean that losses under this Contract are not
recoverable until the Company's ultimate net loss has been
ascertained.
B. "Loss in excess of policy limits" and "extra contractual obligations" as
used herein shall be defined as follows:
1. "Loss in excess of policy limits" shall mean 90.0% of any amount
paid or payable by the Company in excess of its policy limits, but
otherwise within the terms of its policy, as a result of an action
against it by its insured or its insured's assignee to recover
damages the insured is legally obligated to pay to a third party
claimant because of the Company's alleged or actual negligence or
bad faith 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 insured, or in discharging its duty to
prepare or prosecute an appeal consequent upon such an action.
2. "Extra contractual obligations" shall mean 90.0% of any punitive,
exemplary, compensatory or consequential damages, other than loss in
excess of policy limits, paid or payable by the Company as a result
of an action against it by its insured, its insured's assignee or a
third party claimant, which action alleges negligence or bad faith
on the part of the Company in handling a claim under a policy
subject to this Contract. 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.
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.
C. "Loss adjustment expense" as used herein shall mean expenses allocable to
the investigation, defense and/or settlement of specific claims, including
litigation expenses, interest on judgments, and legal expenses incurred in
connection with coverage questions and legal actions connected thereto,
but not including office expenses or salaries of the Company's regular
employees.
D. "Occurrence" as used herein shall follow the definition of "loss" or
"occurrence," as elected by the Company, under the applicable original
policy.
Article VII - Claims and Loss Adjustment Expense
A. Whenever a claim is reserved by the Company for an amount
greater than its retention hereunder and/or whenever a claim appears
likely to result in a claim under this Contract, the Company shall
notify the Reinsurer. Further, the Company shall notify the Reinsurer
whenever a claim involves a fatality, amputations or permanent loss of
use of upper or lower extremities, spinal injuries resulting in
partial or total paralysis of upper or lower extremities, brain
injuries resulting in impairment of physical functions, severe burn
cases, or any other injuries likely to result in a permanent
disability rating of 50.0% or more, regardless of liability, if the
policy limits or statutory benefits applicable to the claim are
greater than the Company's retention hereunder. The Reinsurer shall
have the right to participate, at its own expense, in the defense or
control of any claim or suit or proceeding involving this reinsurance.
B. All claim settlements made by the Company, provided they are within the
terms of this Contract, shall be binding upon the Reinsurer, and the
Reinsurer agrees to pay all amounts for which it may be liable upon
receipt of reasonable evidence of the amount paid by the Company.
C. In the event of loss hereunder, loss adjustment expense
incurred by the Company in connection therewith which does not reduce
the Company's limit of liability under the policy involved shall be
shared by the Company and the Reinsurer in the proportion the ultimate
net loss paid or payable by the Reinsurer bears to the total loss paid
or payable by the Company, prior to any reinsurance recoveries, but
after deduction of all salvage, subrogation and other recoveries.
However, if a verdict or judgment is reduced by any process other than
by the trial court, resulting in an ultimate saving to the Reinsurer,
or a judgment is reversed outright, the expenses incurred in securing
such reduction or reversal shall be shared by the Company and the
Reinsurer in the proportion that each benefits from such reduction or
reversal, and the expenses incurred up to the time of the original
verdict or judgment which do not reduce the Company's limit of
liability under the policy involved shall be shared in proportion to
each party's interest in such original verdict or judgment. The
Reinsurer's liability for such loss adjustment expense shall be in
addition to its liability for ultimate net loss.
Article VIII - Other Reinsurance
A. The Company shall be permitted to carry underlying reinsurance, recoveries
under which shall 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 maintain in force excess of loss reinsurance for
$600,000 in excess of $400,000 any one occurrence, any one policy,
recoveries under which shall inure to the benefit of this Contract only
with respect to claims which do not involve extra contractual obligations
or loss in excess of policy limits.
Article IX - Premium
A. As premium for the reinsurance provided hereunder, the Company shall pay
the Reinsurer .54% of its net written premium for the term of this
Contract, subject to a minimum premium of $126,000.
B. The Company shall pay the Reinsurer a deposit premium of $140,000 in four
equal installments of $35,000 on the first day of each calendar quarter
during the term of this Contract.
C. Within 45 days after the expiration of this Contract, the Company shall
report the premium due hereunder determined in accordance with paragraph A
above. Any additional premium due the Reinsurer or return premium due the
Company shall be promptly remitted.
D. "Net written premium" as used herein is defined as gross written premium
of the Company for the classes of business reinsured hereunder, less
cancellations and return premiums, and less premiums ceded by the Company
for reinsurance which inures to the benefit of this Contract or for
reinsurance which increases the Company's available capacity.
E. Within 45 days after the end of each calendar quarter, the Company shall
report to the Reinsurer the unearned reinsurance premium as of the end of
the calendar quarter.
F. The Company shall furnish the Reinsurer with such information as the
Reinsurer may require to complete its Annual Convention Statement.
Article X - 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 XI - Salvage and Subrogation
The Reinsurer shall be credited with salvage (i.e., reimbursement obtained or
recovery made by the Company, less the actual cost, excluding salaries of
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. Salvage thereon shall always be
used to reimburse the excess carriers in the reverse order of their priority
according to their participation before being used in any way to reimburse the
Company for its primary loss. 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.
Article XII - 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.
Article XIII - Liability of the Reinsurer
A. The liability of the Reinsurer shall follow that of the Company in every
case and be subject in all respects to all the general and specific
stipulations, clauses, waivers and modifications of the Company's policies
and any endorsements thereon. However, in no event shall this be construed
in any way to provide coverage outside the terms and conditions set forth
in this Contract.
B. 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 XIV - Net Retained Lines (BRMA 32E)
A. This Contract applies only to that portion of any policy which the Company
retains net for its own account (prior to deduction of any underlying
reinsurance specifically permitted in this Contract), and in calculating
the amount of any loss hereunder and also in computing the amount or
amounts in excess of which this Contract attaches, only loss or losses in
respect of that portion of any policy which the Company retains net for
its own account shall be included.
B. The amount of the Reinsurer's liability hereunder in respect of any loss
or losses shall not be increased by reason of the inability of the Company
to collect from any other reinsurer(s), whether specific or general, any
amounts which may have become due from such reinsurer(s), whether such
inability arises from the insolvency of such other reinsurer(s) or
otherwise.
Article XV - 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 is rectified as soon as possible
after discovery.
Article XVI - Currency (BRMA 12A)
A. Whenever the word "Dollars" or the "$" sign appears in this Contract, they
shall be construed to mean United States Dollars and all transactions
under this Contract shall be in United States Dollars.
B. Amounts paid or received by the Company in any other currency shall be
converted to United States Dollars at the rate of exchange at the date
such transaction is entered on the books of the Company.
Article XVII - 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 XVIII - Federal Excise Tax (BRMA 17A)
(Applicable to those reinsurers, excepting Underwriters at Lloyd's London and
other reinsurers exempt from Federal Excise Tax, who are domiciled outside the
United States of America.)
A. The Reinsurer has agreed to allow for the purpose of paying the Federal
Excise Tax the applicable percentage of the premium payable hereon (as
imposed under Section 4371 of the Internal Revenue Code) to the extent
such premium is subject to the Federal Excise Tax.
B. In the event of any return of premium becoming due hereunder the Reinsurer
will deduct the applicable percentage from the return premium payable
hereon and the Company or its agent should take steps to recover the tax
from the United States Government.
Article XIX - Unearned Premium and Loss Reserves
A. If the Reinsurer is unauthorized in any state of the United States of
America or the District of Columbia or the Reinsurer has an A. M. Best
rating equal to or below B++, 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 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 expense 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 one or more of the reinsured
companies, 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 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 one or more of the reinsured companies, 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
(1) where this Contract specifically provides another payee of such
reinsurance in the event of the insolvency of the company or (2) 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.
Article XXI - Arbitration
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 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 El Segundo, California
unless otherwise 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 a 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.
Article XXIII - Agency Agreement
If more than one reinsured company is named as a party to this Contract, the
first named company shall be deemed the agent of the other reinsured companies
for purposes of sending or receiving notices required by the terms and
conditions of this Contract, and for purposes of remitting or receiving any
monies due any party.
Article XXIV - Intermediary (BRMA 23A)
X. X. Xxxxxx 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 X. X. Xxxxxx Co.,
Reinsurance Services, 0000 Xxxx 00xx Xxxxxx, Xxxxxxxxxxx, Xxxxxxxxx 00000.
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:
Calabasas, California, this _______ day of ________________________199___.
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Condor Insurance Company
Table of Contents
Article Page
I Classes of Business Reinsured 1
II Term 2
III Territory 3
IV Exclusions 3
V Retention and Limit 4
VI Definitions 5
VII Claims and Loss Adjustment Expense 6
VIII Other Reinsurance 7
IX Premium 7
X Offset (BRMA 36C) 7
XI Salvage and Subrogation 8
XII Access to Records (BRMA 1D) 8
XIII Liability of the Reinsurer 8
XIV Net Retained Lines (BRMA 32E) 8
XV Errors and Omissions (BRMA 14F) 9
XVI Currency (BRMA 12A) 9
XVII Taxes (BRMA 50B) 9
XVIII Federal Excise Tax (BRMA 17A) 9
XIX Unearned Premium and Loss Reserves 9
XX Insolvency 11
XXI Arbitration 11
XXII Service of Suit (BRMA 49C) 12
XXIII Agency Agreement 13
XXIV Intermediary (BRMA 23A) 13
