EXHIBIT 10(b)
Termination Addendum
to the
Quota Share
Retrocession Agreement
Effective: July 1, 2000
issued to
American Hallmark Insurance Company of Texas
Dallas, Texas
by
Dorinco Reinsurance Company
Midland, Michigan
It Is Hereby Agreed, effective October 1, 2002, with respect to policies
attaching to Underwriting Periods commencing on or after that date, that the
first and fourth paragraphs of Article 2 - Cover (as amended by Addenda Nos.
2, 3 and 4) - shall be deleted and the following substituted therefor:
"The Company will cede, and the Reinsurer will accept as reinsurance, a
55.0% share of all business reinsured hereunder."
"Notwithstanding the above, the Reinsurer shall have no liability for the
amount by which incurred losses and loss adjustment expenses for any
Underwriting Year is between 65.5% and 83.0% of ceded premium for the
same Underwriting Year. This 'loss ratio corridor' between 65.5% and
83.0% shall be held net and unreinsured by the Company, and in addition
to its quota share retention set forth above."
It Is Further Agreed, effective January 1, 2003, that Article 24 -
Intermediary - shall be deleted and the following substituted therefor:
"ARTICLE 24
----------
INTERMEDIARY
------------
Xxxxxxxx Xxxxxx Inc. (known as Xxxxxxxx Inc., on or after April 7, 2003)
is hereby recognized as the Intermediary negotiating this Agreement 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 the Intermediary located at 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."
It Is Also Agreed that this Agreement shall be terminated on March 31, 2003,
in accordance with the "runoff" provisions of the third and fourth
paragraphs of Article 3 - 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:
Dallas, Texas, this ________ day of _____________________________ in the
year ________.
_________________________________________________________
American Hallmark Insurance Company of Texas
Midland, Michigan, this ________ day of _________________________ in the
year ________.
_________________________________________________________
Dorinco Reinsurance Company
