EXHIBIT 10.14
ENDORSEMENT NO. 1
to
MULTIPLE LINE EXCESS OF LOSS
REINSURANCE AGREEMENT NO. 6404-09
between
NATIONAL REINSURANCE CORPORATION
Stamford, Connecticut
(hereinafter referred to as the "REINSURER")
and
PENN-AMERICA INSURANCE COMPANY
Hatboro, Pennsylvania
(hereinafter referred to as the "COMPANY")
NATIONAL REINSURANCE CORPORATION
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ARTICLE 1 - PARTIES TO THE AGREEMENT
This Agreement is solely between the COMPANY and the REINSURER. When more than
one COMPANY is named as a party to this Agreement, the first COMPANY named shall
be the agent of the other companies as to all matters pertaining to this
Agreement. Performance of the obligations of each party under this Agreement
shall be rendered solely to the other party. In no instance shall any insured of
the COMPANY, any claimant against an insured of the COMPANY, or any other third
party have any rights under this Agreement.
ARTICLE 2 - BUSINESS COVERED
The REINSURER, subject to the terms and conditions hereunder and the exclusions
set forth in EXHIBIT A, agrees to indemnify the COMPANY in respect of the net
excess liability stipulated in this Agreement which may accrue to the COMPANY
as a result of each loss on any one risk as respects Property Business, and as a
result of one or more losses arising out of any occurrences as respects Casualty
Business, which may occur during the currency of this Agreement under any and
all binders, policies, or contracts of insurance issued by the COMPANY (all
hereinafter referred to as "policies") and classified by the COMPANY as
Property Business or Casualty Business.
ARTICLE 3 - COMMENCEMENT
This Agreement shall become effective at 12:01 a.m., Standard Time, January 1,
1995 as respects in force, new and renewal business of the COMPANY and shall
remain in force thereafter, subject to the terms and conditions for termination
stipulated in the article entitled TERMINATION.
ARTICLE 4 - TERRITORY
This Agreement shall follow the territorial limits of the COMPANY'S original
policies but is limited to policies issued to and covering insureds domiciled in
the United States of America, its territories and possessions, or the Dominion
of Canada.
ARTICLE 5 - SPECIAL ACCEPTANCE
Business not within the terms and conditions of this Agreement may be submitted
to the REINSURER for special acceptance and, if accepted by the REINSURER, shall
be subject to all of the terms and conditions of this Agreement except as
modified by the special acceptance.
ARTICLE 6 - LIABILITY OF THE REINSURER
The REINSURER shall be liable to the COMPANY for the amount of net loss
sustained by the COMPANY in excess of the COMPANY'S Retention, but not exceeding
the Limit of Liability of the REINSURER as stipulated in the Schedule of
Reinsurance.
NATIONAL REINSURANCE CORPORATION
-2-
IT IS MUTUALLY AGREED that effective from inception (i.e. 12:01 a.m., January 1,
1995, this Agreement is amended as follows:
1. ARTICLE 6 - LIABILITY OF THE REINSURER is deleted in its entirety and
replaced the by following:
ARTICLE 6 - LIABILITY OF THE REINSURER
The REINSURER shall be liable to the COMPANY for the amount of net loss
sustained by the COMPANY in excess of the COMPANY'S Retention, but not
exceeding the Limit of Liability of the REINSURER as stipulated in the
Schedule or Reinsurance.
SCHEDULE OF REINSURANCE
Company Limit of Liability
Class of Business Retention of the REINSURER
Property $200,000 Each Risk $800,000
Each Risk, subject to a
Maximum of $2,400,000 in
any one Loss Occurrence
Casualty $500,000 $2,500,000
Each Occurrence Each Occurrence
Combinations of Above $500,000 $200,000 Each
Retentions Combination Loss Combination Loss
2. ARTICLE 8 - REINSURANCE PREMIUM is deleted in its entirety and replaced the
by following:
ARTICLE 8 - REINSURANCE PREMIUM
The COMPANY shall pay to the REINSURER 10.833% of the subject written
premium as respects Property Business the subject matter hereof, plus
7.917% of the subject written premium as respects Casualty Business the
subject matter hereof, for each annual period during the term of this
Agreement.
Furthermore, the COMPANY shall pay to the REINSURER, as soon as practicable
after the effective time and date of this Agreement, 10.833% of the
unearned premium as respects Property Business the subject matter hereof,
plus 7.917% of the unearned premium as respects Casualty Business the
subject matter hereof, in force at such time.
All other terms and conditions remain unchanged.
NATIONAL REINSURANCE CORPORATION
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IN WITNESS WHEREOF, the parties hereto have caused this Endorsement No. 1 to be
executed in duplicate, in Hatboro, Pennsylvania this 7th day of January, 1995.
PENN-AMERICA INSURANCE COMPANY
/s/ ▇▇▇ ▇▇▇▇▇▇▇▇
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ATTEST: /s/ ▇▇▇▇ ▇▇▇▇▇▇▇
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And in Stamford Connecticut, this 9th day of January, 1995.
NATIONAL REINSURANCE CORPORATION
/s/ ILLEGIBLE
--------------------------------
ATTEST: /s/ ILLEGIBLE
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NATIONAL REINSURANCE CORPORATION
