Exhibit 10.3
FLORIDA ONLY EXCESS CATASTROPHE REINSURANCE CONTRACT
EFFECTIVE: JUNE 1, 2005
issued to
Liberty American Insurance Company
Pinellas Park, Florida
Mobile USA Insurance Company
Pinellas Park, Florida
and
any and all other companies which are now
or may hereafter become member companies of
Liberty American Insurance Group, Inc.
(LOGO)
FLORIDA ONLY EXCESS CATASTROPHE REINSURANCE CONTRACT
EFFECTIVE: JUNE 1, 2005
issued to
Liberty American Insurance Company
Pinellas Park, Florida
Mobile USA Insurance Company
Pinellas Park, Florida
and
any and all other companies which are now
or may hereafter become member companies of
Liberty American Insurance Group, Inc.
First Excess Catastrophe Reinsurance
REINSURERS PARTICIPATIONS
---------- --------------
Aspen Insurance Limited 25.000%
Rosemont Reinsurance Limited 2.000
THROUGH ▇▇▇▇▇▇▇▇ LIMITED
Ascot Insurance Services Limited
(for and on behalf of Ascot Underwriting Syndicate 1414) 5.000
Lloyd's Underwriters Per Signing Schedule 68.000
TOTAL 100.000%
Second Excess Catastrophe Reinsurance
REINSURERS PARTICIPATIONS
---------- --------------
Aspen Insurance Limited 15.000%
AXIS Specialty Limited 3.000
Montpelier Reinsurance Limited 4.800
Partner Reinsurance Company 3.750
Platinum Underwriters Reinsurance, Inc. 3.000
PXRE Reinsurance Limited 2.400
Rosemont Reinsurance Limited 1.800
THROUGH ▇▇▇▇▇▇▇▇ LIMITED
Ascot Insurance Services Limited
(for and on behalf of Ascot Underwriting Syndicate 1414) 3.750
AXA RE 6.000
Lloyd's Underwriters Per Signing Schedule 56.500
TOTAL 100.000%
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Third Excess Catastrophe Reinsurance
REINSURERS PARTICIPATIONS
---------- --------------
Aspen Insurance Limited 15.000%
AXIS Specialty Limited 2.900
General Reinsurance Corporation 7.000
Montpelier Reinsurance Limited 4.075
Partner Reinsurance Company 7.000
Platinum Underwriters Reinsurance, Inc. 2.850
PXRE Reinsurance Limited 1.700
Rosemont Reinsurance Limited 1.100
THROUGH ▇▇▇▇▇▇▇▇ LIMITED
Ascot Insurance Services Limited
(for and on behalf of Ascot Underwriting Syndicate 1414) 7.000
AXA RE 5.700
Lloyd's Underwriters Per Signing Schedule 45.675
TOTAL 100.000%
Fourth Excess Catastrophe Reinsurance
REINSURERS PARTICIPATIONS
---------- --------------
Aspen Insurance Limited 21.000%
AXIS Specialty Limited 2.500
General Reinsurance Corporation 10.000
Hannover Re (Bermuda), Ltd. 2.500
Montpelier Reinsurance Limited 5.000
Partner Reinsurance Company 10.000
Platinum Underwriters Reinsurance, Inc. 5.000
PXRE Reinsurance Limited 3.000
Rosemont Reinsurance Limited 2.000
XL Re Ltd 8.000
THROUGH ▇▇▇▇▇▇▇▇ LIMITED
Ascot Insurance Services Limited
(for and on behalf of Ascot Underwriting Syndicate 1414) 10.000
AXA RE 10.000
Lloyd's Underwriters Per Signing Schedule 11.000
TOTAL 100.000%
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Fifth Excess Catastrophe Reinsurance
REINSURERS PARTICIPATIONS
---------- --------------
American Re-Insurance Company, A Delaware Corporation 3.000%
AXIS Specialty Limited 1.700
Hannover Re (Bermuda), Ltd. 8.000
Montpelier Reinsurance Limited 3.750
Partner Reinsurance Company 9.000
Platinum Underwriters Reinsurance, Inc. 3.750
PXRE Reinsurance Limited 2.150
Rosemont Reinsurance Limited 2.150
Swiss Re Underwriters Agency, Inc.
(for Swiss Reinsurance America Corporation) 10.000
Transatlantic Reinsurance Company 4.750
XL Re Ltd 4.750
THROUGH ▇▇▇▇▇▇▇▇ LIMITED (PLACEMENT ONLY)
Munchener Ruckversicherungs-Gesellschaft 4.500
THROUGH ▇▇▇▇▇▇▇▇ LIMITED
Ascot Insurance Services Limited
(for and on behalf of Ascot Underwriting Syndicate 1414) 6.750
AXA RE 9.500
Lloyd's Underwriters Per Signing Schedule 26.250
TOTAL 100.000%
Sixth Excess Catastrophe Reinsurance
REINSURERS PARTICIPATIONS
---------- --------------
American Re-Insurance Company, A Delaware Corporation 2.000%
AXIS Specialty Limited 1.250
General Reinsurance Corporation 2.700
Hannover Re (Bermuda), Ltd. 15.000
Montpelier Reinsurance Limited 4.000
Partner Reinsurance Company 9.500
PXRE Reinsurance Limited 1.500
Rosemont Reinsurance Limited 1.500
Swiss Re Underwriters Agency, Inc.
(for Swiss Reinsurance America Corporation) 10.000
Transatlantic Reinsurance Company 13.500
XL Re Ltd 2.250
THROUGH ▇▇▇▇▇▇▇▇ LIMITED (PLACEMENT ONLY)
Munchener Ruckversicherungs-Gesellschaft 4.500
THROUGH ▇▇▇▇▇▇▇▇ LIMITED
Ascot Insurance Services Limited
(for and on behalf of Ascot Underwriting Syndicate 1414) 6.750
AXA RE 6.500
Lloyd's Underwriters Per Signing Schedule 19.050
TOTAL 100.000%
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TABLE OF CONTENTS
ARTICLE PAGE
------- ----
I Classes of Business Reinsured 1
II Commencement and Termination 1
III Territory (BRMA 51A) 2
IV Exclusions 3
V Retention and Limit 5
VI Reinstatement 5
VII Definitions 6
VIII Loss Occurrence 7
IX Loss Notices and Settlements 8
X Salvage and Subrogation 9
XI Florida Hurricane Catastrophe Fund 9
XII Reinsurance Premium 10
XIII Late Payments 10
XIV Offset (BRMA 36D) 12
XV Access to Records (BRMA 1D) 12
XVI Liability of the Reinsurer 12
XVII Net Retained Lines (BRMA 32B) 12
XVIII Errors and Omissions (BRMA 14F) 13
XIX Currency (BRMA 12A) 13
XX Taxes (BRMA 50B) 13
XXI Federal Excise Tax 13
XXII Reserves 13
XXIII Insolvency 15
XXIV Arbitration 15
XXV Service of Suit 16
XXVI Agency Agreement 17
XXVII Governing Law 17
XXVIII Confidentiality 17
XXIX Severability 17
XXX Intermediary (BRMA 23A) 18
Schedule A
(LOGO)
FLORIDA ONLY EXCESS CATASTROPHE REINSURANCE CONTRACT
EFFECTIVE: JUNE 1, 2005
issued to
Liberty American Insurance Company
Pinellas Park, Florida
Mobile USA Insurance Company
Pinellas Park, Florida
and
any and all other companies which are now
or may hereafter become member companies of
Liberty American Insurance Group, Inc.
(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
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") in force at the effective date
hereof or issued or renewed on or after that date, and classified by the Company
as Property business, subject to the terms, conditions and limitations set forth
herein and in Schedule A attached to and forming part of this Contract.
ARTICLE II - COMMENCEMENT AND TERMINATION
A. This Contract shall become effective on June 1, 2005, with respect to
losses arising out of loss occurrences commencing on or after that date,
and shall remain in force until May 31, 2006, both days inclusive.
B. Notwithstanding the provisions of paragraph A above, the Company may
terminate a Subscribing Reinsurer's percentage share in this Contract by
giving written notice to the Subscribing Reinsurer in the event any of the
following circumstances occur as clarified by public announcement for
subparagraphs 1 through 6 below and upon discovery for subparagraphs 7 and
8 below:
1. The Subscribing Reinsurer's policyholders' surplus subsequent to the
date that lines are bound for this Contract has been reduced by more
than 20.0% of the amount of surplus 12 months prior to that date; or
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2. The Subscribing Reinsurer's policyholders' surplus at any time between
the date that lines are bound and the effective date of termination of
this Contract has been reduced by more than 20.0% of the amount of
surplus at the date of the Subscribing Reinsurer's most recent
financial statement filed with regulatory authorities and available to
the public as of the date that lines are bound for this Contract; or
3. The Subscribing Reinsurer's A.M. Best's rating has been assigned or
downgraded below A- (inclusive of "Not Rated" ratings) and/or Standard
& Poor's rating has been assigned or downgraded below BBB+ at any time
between the date that lines are bound and the effective date of
termination of this Contract; or
4. The Subscribing Reinsurer has become merged with, acquired by or
controlled by any other company, corporation or individual(s) not
controlling the Subscribing Reinsurer's operations previously; or
5. A State Insurance Department or other legal authority has ordered the
Subscribing Reinsurer to cease writing business; or
6. The Subscribing Reinsurer has become insolvent or has been placed into
liquidation or receivership (whether voluntary or involuntary) or
proceedings have been instituted against the Subscribing Reinsurer for
the appointment of a receiver, liquidator, rehabilitator, conservator
or trustee in bankruptcy, or other agent known by whatever name, to
take possession of its assets or control of its operations; or
7. The Subscribing Reinsurer has reinsured its entire liability under
this Contract without the Company's prior written consent; or
8. The Subscribing Reinsurer has ceased assuming new or renewal property
or casualty treaty reinsurance business.
C. If this Contract is terminated or expires while a loss occurrence covered
hereunder is in progress, the Reinsurer's liability hereunder shall,
subject to the other terms and conditions of this Contract, be determined
as if the entire loss occurrence had occurred prior to the termination or
expiration of this Contract, provided that no part of such loss occurrence
is claimed against any renewal or replacement of this Contract.
D. The Reinsurer shall have no liability hereunder with respect to losses
arising out of loss occurrences commencing after the effective date of
termination or expiration.
ARTICLE III - TERRITORY (BRMA 51A)
The territorial limits of this Contract shall be identical with those of the
Company's policies.
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ARTICLE IV - EXCLUSIONS
This Contract does not apply to and specifically excludes the following:
1. Financial guarantee and insolvency.
2. Mortgage Impairment insurances and similar kinds of insurances,
however styled.
3. Nuclear risks as defined in the "Nuclear Incident Exclusion Clause -
Physical Damage - Reinsurance" attached to and forming part of this
Contract.
4. Loss or damage caused by or resulting from 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, but this exclusion shall not apply to
loss or damage covered under a standard policy with a standard War
Exclusion Clause.
5. Loss or liability excluded under the provisions of the "Pools,
Associations and Syndicates Exclusion Clause" attached to and forming
part of this Contract.
6. 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.
7. Losses in respect of overhead transmission and distribution lines and
their supporting structures other than those on or within 1,000 feet
of the insured premises. It is understood and agreed that public
utilities extension and/or suppliers extension and/or contingent
business interruption coverages are not subject to this exclusion,
provided that these are not part of a transmitters' or distributors'
policy.
8. Accident and Health, Casualty, Fidelity and/or Surety business.
9. Pollution and seepage coverages excluded under the provisions of the
"Pollution and Seepage Exclusion Clause (BRMA 39A)" attached to and
forming part of this Contract.
10. Notwithstanding any other provision to the contrary within this
Contract or any amendment thereto, loss, damage, cost or expense
directly or indirectly caused by, contributed to by, resulting from,
or arising out of or in connection with any act of terrorism, as
defined herein, regardless of any other cause or event contributing
concurrently or in any other sequence to the loss.
An "act of terrorism" includes any act, or preparation in respect of
action, or threat of action, designed to influence the government de
jure or de facto of any nation or any political division thereof, or
in pursuit of political, religious, ideological or similar purposes to
intimidate the public or a section of the public of any nation by any
person
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or group(s) of persons whether acting alone or on behalf of or in
connection with any organization(s) or government(s) de jure or de
facto, and which:
a. Involves violence against one or more persons, or
b. Involves damage to property; or
c. Endangers life other than that of the person committing the
action; or
d. Creates a risk to health or safety of the public or a section of
the public; or
e. Is designed to interfere with or to disrupt an electronic system.
Loss, damage, cost or expense directly or indirectly caused by,
contributed to by, resulting from, or arising out of or in connection
with any action in controlling, preventing, suppressing, retaliating
against, or responding to any act of terrorism.
Notwithstanding the above and subject otherwise to the terms,
conditions and limitations of this Contract, in respect only of
personal lines this Contract will pay actual loss or damage (but not
related cost or expense) caused by any act of terrorism provided such
act is not directly or indirectly caused by, contributed to by,
resulting from, or arising out of or in connection with biological,
chemical, radioactive, or nuclear pollution or contamination or
explosion.
11. Loss or liability in any way or to any extent arising out of the
actual or alleged presence or actual, alleged or threatened presence
of fungi including, but not limited to, mold, mildew, mycotoxins,
microbial volatile organic compounds or other "microbial
contaminations." This includes:
a. Any supervision, instruction, recommendations, warnings or advice
given or which should have been given in connection with the
above; and
b. Any obligation to share damages with or repay someone else who
must pay damages because of such injury or damage.
For purposes of this exclusion, "microbial contamination" means any
contamination, either airborne or surface, which arises out of or is
related to the presence of fungi, mold, mildew, mycotoxins, microbial
volatile organic compounds or spores, including, without limitation,
Penicillium, Aspergillus, Fusarium, Aspergillus Flavus and
Stachybotrys chartarum.
Losses resulting from the above causes do not in and of themselves
constitute an event unless arising out of one or more of the following
perils, in which case this exclusion does not apply:
Fire, lightning, explosion, aircraft or vehicle impact, falling
objects, windstorm, hail, tornado, cyclone, hurricane,
earthquake, volcano, tsunami, flood, freeze or weight of snow.
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Notice of any claims for mold-related losses must be given by the
Company to the Reinsurer, in writing, within 24 months after the
commencement date of the loss occurrence to which such claims relate.
12. Loss or liability excluded under the provisions of the "Electronic
Data Endorsement B" (N.M.A. 2915) attached to and forming part of this
Contract.
ARTICLE V - RETENTION AND LIMIT
A. As respects each excess layer of reinsurance coverage provided by this
Contract, the Company shall retain and be liable for the first amount of
ultimate net loss, shown as "Company's Retention" for that excess layer in
Schedule A attached hereto, arising out of each loss occurrence. The
Reinsurer shall then be liable, as respects each excess layer, for the
amount by which such ultimate net loss exceeds the Company's applicable
retention, but the liability of the Reinsurer under each excess layer shall
not exceed the amount, shown as "Reinsurer's Per Occurrence Limit" for that
excess layer in Schedule A attached hereto, as respects any one loss
occurrence.
B. No claim shall be made under any excess layer of reinsurance coverage
provided by this Contract as respects any one loss occurrence unless at
least two risks insured or reinsured by the Company are involved in such
loss occurrence. For purposes of this Contract, the Company shall be the
sole judge of what constitutes one risk.
ARTICLE VI - REINSTATEMENT
A. In the event all or any portion of the reinsurance under any excess layer
of reinsurance coverage provided by this Contract is exhausted by loss, the
amount so exhausted shall be reinstated immediately from the time the loss
occurrence commences hereon. For each amount so reinstated the Company
agrees to pay additional premium equal to the product of the following:
1. The percentage of the occurrence limit for the excess layer reinstated
(based on the loss paid by the Reinsurer under that excess layer);
times
2. The final adjusted reinsurance premium, as calculated in accordance
with Article XII, for the excess layer reinstated for the term of this
Contract (exclusive of reinstatement premium).
B. Whenever the Company requests payment by the Reinsurer of any loss under
any excess layer hereunder, the Company shall submit a statement to the
Reinsurer of reinstatement premium due the Reinsurer for that excess layer.
If the final adjusted reinsurance premium for any excess layer for the term
of this Contract has not been determined as of the date of any such
statement, the calculation of reinstatement premium due for that excess
layer shall be based on the annual deposit premium for that excess layer
and shall be readjusted when the final adjusted reinsurance premium for
that excess layer for the term of this Contract has been determined. Any
reinstatement premium shown to be due the Reinsurer for any excess layer as
reflected by any such statement (less prior payments, if any, for that
excess layer) shall be payable by the Company concurrently with payment by
the Reinsurer of the requested loss for that excess layer. Any return
reinstatement premium shown to be
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due the Company shall be remitted by the Reinsurer as promptly as possible
after receipt and verification of the Company's statement.
C. Notwithstanding anything stated herein, the liability of the Reinsurer
under any excess layer of reinsurance coverage provided by this Contract
shall not exceed either of the following:
1. The amount, shown as "Reinsurer's Per Occurrence Limit" for that
excess layer in Schedule A attached hereto, as respects loss or losses
arising out of any one loss occurrence; or
2. The amount, shown as "Reinsurer's Term Limit" for that excess layer in
Schedule A attached hereto, in all during the term of this Contract.
D. If this Contract is terminated, and the reinstatement premium is less than
the loss, the Reinsurer shall pay the loss prior to receiving the
reinstatement premium.
E. Any reinstatement premium paid or otherwise due the Reinsurer for losses
arising out of loss occurrences commencing on or prior to the effective
date of termination shall be considered fully earned for purposes of this
Article.
ARTICLE VII - 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 loss
adjustment expense, as hereinafter defined) 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, such loss in excess of the
Company's policy limits having been incurred because of, but not
limited to, failure by the Company to settle within the policy limits
or by reason of the Company's alleged or actual negligence, fraud or
bad faith in rejecting an offer of settlement or in the preparation of
the defense or in the trial of any action against its insured or
reinsured or in the preparation or prosecution of an appeal consequent
upon such an action.
2. "Extra contractual obligations" shall mean 90.0% of any punitive,
exemplary, compensatory or consequential damages paid or payable by
the Company, not covered by any other provision of this Contract and
which arise from the handling of any claim on business subject to this
Contract, such liabilities arising because of, but not limited to,
failure by the Company to settle within the policy limits or by reason
of the Company's alleged or actual negligence, fraud or bad faith in
rejecting an offer of settlement or in the preparation of the defense
or in the trial of any action against its insured or reinsured or in
the preparation or prosecution of an appeal consequent
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upon such an action. An extra contractual obligation shall be deemed,
in all circumstances, to have occurred on the same date as the loss
covered or alleged to be covered under the policy.
Notwithstanding anything stated herein, the amount included in the ultimate
net loss for any one loss occurrence as respects loss in excess of policy
limits and extra contractual obligations shall not exceed 25.0% of the
Company's indemnity loss hereunder arising out of that loss occurrence.
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 assignable to
the investigation, appraisal, adjustment, settlement, litigation, defense
and/or appeal of specific claims, regardless of how such expenses are
classified for statutory reporting purposes. Loss adjustment expense shall
include, but not be limited to, declaratory judgments, interest on
judgments, expenses of outside adjusters, and a pro rata share of the
salaries and expenses of the Company's field employees according to the
time occupied adjusting such losses and expenses of the Company's officials
incurred in connection with the losses, but shall not include office
expenses or salaries of the Company's regular employees.
ARTICLE VIII - LOSS OCCURRENCE
A. 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.
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 insured's premises by
strikers, provided such occupation commenced during the aforesaid
period.
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3. As regards earthquake (the epicentre of which need not necessarily be
within the territorial confines referred to in the introductory
portion of this paragraph) 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) may be included in the Company's "loss
occurrence."
5. As regards firestorms, brush fires, and any other fires or series of
fires, irrespective of origin (except as provided in subparagraphs 2
and 3 above), which spread through trees, grassland or other
vegetation, all individual losses sustained by the Company which occur
during any period of 168 consecutive hours within a 100-mile radius of
any fixed point selected by the Company may be included in the
Company's "loss occurrence." However, an individual loss subject to
this subparagraph cannot be included in more than one "loss
occurrence."
B. For all those "loss occurrences," other than those referred to in
subparagraph 2 of paragraph A 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, except for any
"loss occurrence" referred to in subparagraph 1 of paragraph A above where
only one such period of 72 consecutive hours shall apply with respect to
one event, regardless of the duration of the event.
C. As respects those "loss occurrences" referred to in subparagraph 2 of
paragraph A 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 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.
D. No individual losses occasioned by an event that would be covered by 72
hours clauses may be included in any "loss occurrence" claimed under the
168 hours provision.
ARTICLE IX - LOSS NOTICES AND SETTLEMENTS
A. Whenever losses sustained by the Company appear likely to result in a claim
hereunder, the Company shall notify the Reinsurer, and the Reinsurer shall
have the right to participate in the adjustment of such losses at its own
expense.
B. All loss 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 (or scheduled to be paid) by the
Company.
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ARTICLE X - 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 XI - FLORIDA HURRICANE CATASTROPHE FUND
A. Any loss reimbursement paid or payable to the Company under the Florida
Hurricane Catastrophe Fund (FHCF) as a result of loss occurrences
commencing during the term of this Contract shall inure to the benefit of
this Contract.
B. Prior to the determination of the Company's FHCF retention and payout, if
any, under the reimbursement contract between the Company and the State
Board of Administration of the State of Florida, the Reinsurer's liability
hereunder will be determined provisionally based on the projected payout,
determined in accordance with the provisions of the reimbursement contract.
Following determination of the payout under the reimbursement contract, the
ultimate net loss under this Contract will be recalculated. If, as a result
of such calculation, the loss to the Reinsurer under any excess layer of
this Contract in any one loss occurrence is less than the amount previously
paid by the Reinsurer under that excess layer, the Company shall promptly
remit the difference to the Reinsurer. If the loss to the Reinsurer under
any excess layer in any one loss occurrence is greater than the amount
previously paid by the Reinsurer, the Reinsurer shall promptly remit the
difference to the Company.
C. If an FHCF reimbursement amount is based on the Company's losses in more
than one loss occurrence commencing during the term of this Contract, the
total FHCF reimbursement received by the Company shall be allocated to
individual loss occurrences in chronological order of the dates such loss
occurrences commence, beginning with the first such loss occurrence
commencing during the term of this Contract, provided that:
1. The portion of the total FHCF reimbursement amount to be allocated by
the Company to any individual loss occurrence shall be equal to the
lesser of: (a) the amount of FHCF reimbursement to which the Company
would be entitled for that loss occurrence alone, or (b) the remaining
FHCF reimbursement which has not been allocated by the Company to
prior loss occurrences; and
2. The total amount allocated by the Company to all such loss occurrences
shall be equal to the total FHCF reimbursement received by the Company
for such loss occurrences.
D. Any reimbursement premiums or emergency assessment paid by the Company
under the FHCF shall be deemed to be premiums paid for inuring reinsurance.
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ARTICLE XII - REINSURANCE PREMIUM
A. As premium for each excess layer of reinsurance coverage provided by this
Contract, the Company shall pay the Reinsurer the greater of the following:
1. The amount, shown as "Minimum Premium" for that excess layer in
Schedule A attached hereto (in the event this Contract is terminated
prior to May 31, 2006, no minimum premium shall apply); or
2. The sum of the following:
a. The percentage, shown as "Condominium, Dwelling and Homeowners
Premium Rate" for that excess layer in Schedule A attached
hereto, of the Company's gross earned premium for Condominium,
Dwelling and Homeowners business during the term of this
Contract; and
b. The percentage, shown as "Manufactured Homeowners Premium Rate"
for that excess layer in Schedule A attached hereto, of the
Company's gross earned premium for Manufactured Homeowners
business during the term of this Contract.
B. The Company shall pay the Reinsurer a deposit premium for each excess layer
of the amount, shown as "Deposit Premium" for that excess layer in Schedule
A attached hereto, in four equal installments of the amount, shown as
"Quarterly Deposit Premium" for that excess layer in Schedule A attached
hereto, on June 1, September 1 and December 1 of 2005 and March 1, 2006.
However, if this Contract is terminated prior to May 31, 2006, no deposit
premium installments shall be due from the Company after the effective date
of termination.
C. Within 45 days after the termination or expiration of this Contract, the
Company shall provide a report to the Reinsurer setting forth the premium
due hereunder for each excess layer, computed in accordance with paragraph
A, and any additional premium due the Reinsurer or return premium due the
Company for each such excess layer shall be remitted promptly.
D. "Gross earned premium" as used herein is defined as earned premium of the
Company for the classes of business reinsured hereunder, before the
deduction of any premiums ceded by the Company for reinsurance which inures
to the benefit of this Contract. ▇▇▇▇▇ earned premium will not include the
Company's earned premium for Homeowners, Manufactured Homeowners, Dwelling
and Condominium policies that include a "No Wind/No Water" exclusion. It is
understood that gross earned premium shall include catastrophe fees, but
shall exclude MGA fees, Department of Revenue Special Tax (DRST) fees and
policy surcharges to recoup residual market deficit assessments.
ARTICLE XIII - LATE PAYMENTS
A. The provisions of this Article shall not be implemented unless specifically
invoked, in writing, by one of the parties to this Contract.
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B. In the event any premium, loss or other payment due either party is not
received by the intermediary named in Article XXX (hereinafter referred to
as the "Intermediary") by the payment due date, the party to whom payment
is due, may, by notifying the Intermediary in writing, require the debtor
party to pay, and the debtor party agrees to pay, an interest penalty on
the amount past due calculated for each such payment on the last business
day of each month as follows:
1. The number of full days which have expired since the due date or the
last monthly calculation, whichever the lesser; times
2. 1/365ths of the six-month United States Treasury Bill rate, as quoted
in The Wall Street Journal on the first business day of the month for
which the calculation is made; times
3. The amount past due, including accrued interest.
It is agreed that interest shall accumulate until payment of the original
amount due plus interest penalties have been received by the Intermediary.
C. The establishment of the due date shall, for purposes of this Article, be
determined as follows:
1. As respects the payment of routine deposits and premiums due the
Reinsurer, the due date shall be as provided for in the applicable
section of this Contract. In the event a due date is not specifically
stated for a given payment, it shall be deemed due 30 days after the
date of transmittal by the Intermediary of the initial billing for
each such payment.
2. Any claim or loss payment due the Company hereunder shall be deemed
due 10 business days after the proof of loss or demand for payment is
transmitted to the Reinsurer. If such loss or claim payment is not
received within the 10 days, interest will accrue on the payment or
amount overdue in accordance with paragraph B above, from the date the
proof of loss or demand for payment in accordance with Article IX, was
transmitted to the Reinsurer.
3. As respects any payment, adjustment or return due either party not
otherwise provided for in subparagraphs 1 and 2 of paragraph C above,
the due date shall be as provided for in the applicable section of
this Contract. In the event a due date is not specifically stated for
a given payment, it shall be deemed due 10 business days following
transmittal of written notification that the provisions of this
Article have been invoked.
For purposes of interest calculations only, amounts due hereunder shall be
deemed paid upon receipt by the Intermediary.
D. Nothing herein shall be construed as limiting or prohibiting a Subscribing
Reinsurer from contesting the validity of any claim, or from participating
in the defense of any claim or suit, or prohibiting either party from
contesting the validity of any payment or from initiating any arbitration
or other proceeding in accordance with the provisions of this Contract. If
the debtor party prevails in an arbitration or other proceeding, then any
interest penalties due
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hereunder on the amount in dispute shall be null and void. If the debtor
party loses in such proceeding, then the interest penalty on the amount
determined to be due hereunder shall be calculated in accordance with the
provisions set forth above unless otherwise determined by such proceedings.
If a debtor party advances payment of any amount it is contesting, and
proves to be correct in its contestation, either in whole or in part, the
other party shall reimburse the debtor party for any such excess payment
made plus interest on the excess amount calculated in accordance with this
Article.
E. Interest penalties arising out of the application of this Article that are
$100 or less from any party shall be waived unless there is a pattern of
late payments consisting of three or more items over the course of any
12-month period.
ARTICLE XIV - OFFSET (BRMA 36D)
The Company and the Reinsurer, each at its option, may offset any balance or
balances, whether on account of premiums, claims and losses, loss expenses or
salvages due from one party to the other under this Contract; provided, however,
that in the event of the insolvency of a party hereto, offsets shall only be
allowed in accordance with applicable statutes and regulations.
ARTICLE XV - 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 XVI - 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 XVII - NET RETAINED LINES (BRMA 32B)
A. This Contract applies only to that portion of any policy which the Company
retains net for its own account, 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
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such reinsurer(s), whether such inability arises from the insolvency of
such other reinsurer(s) or otherwise.
ARTICLE XVIII - 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 XIX - 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 XX - 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 XXI - FEDERAL EXCISE TAX
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 XXII - RESERVES
A. The Reinsurer agrees to fund, within 30 days of the Company's request,
subject to receipt of satisfactory information from the Company, its share
of the Company's ceded outstanding loss and loss adjustment expense
reserves (including incurred but not reported loss reserves for known loss
occurrences established by the Company) by:
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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 the Reinsurer is unauthorized in any state of the United States of
America or the District of Columbia having jurisdiction over the Company
and if, without such funding, a penalty would accrue to the Company on any
financial statement, including but not limited to quarterly filings, 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 of funding is acceptable to the Company and to the insurance
regulatory authorities involved.
For the purpose of this Contract, the Lloyd's U.S. Credit for Reinsurance
Trust Fund shall be considered an acceptable funding instrument.
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 or longer where required by insurance
regulatory authorities. 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 losses and/or loss
adjustment expense paid under the terms of policies reinsured
hereunder, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer's share of any other amounts
claimed to be due hereunder, unless paid in cash by the Reinsurer;
3. To fund a cash account in an amount equal to the Reinsurer's share of
ceded outstanding loss and loss adjustment expense reserves (including
incurred but not reported loss reserves for known loss occurrences
established by the Company) 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;
4. 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
outstanding loss and loss adjustment expense reserves (including
incurred but not reported loss reserves for known loss occurrences
established by the Company), if so requested by the Reinsurer.
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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) or B(3), or in the case of
B(2), the actual amount determined to be due, the Company shall promptly
return to the Reinsurer the excess amount so drawn.
ARTICLE XXIII - 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 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 XXIV - ARBITRATION
A. As a condition precedent to any right of action hereunder, any dispute or
difference between the Company and any Reinsurer relating to the
interpretation or performance of this Contract, including its formation or
validity, or any transaction under this Contract, whether arising before or
after termination, shall be submitted to arbitration.
B. 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 provided that communication shall be made by the Company to each of
the reinsurers constituting the one party, and
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provided, however, that nothing therein 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 Reinsurer under the terms of
this Contract from several to joint.
C. Upon written request of any party, each party shall choose an arbitrator
and the two chosen shall select a third arbitrator. If either party refuses
or neglects to appoint an arbitrator within 30 days after receipt of the
written request for arbitration, the requesting party may appoint a second
arbitrator. If the two arbitrators fail to agree on the selection of a
third arbitrator within 30 days of their appointment, the Company shall
petition the American Arbitration Association to appoint the third
arbitrator. If the American Arbitration Association fails to appoint the
third arbitrator within 30 days after it has been requested to do so,
either party may request a justice of a court of general jurisdiction of
the state in which the arbitration is to be held to appoint the third
arbitrator. All arbitrators shall be active or retired officers of
insurance or reinsurance companies, or Lloyd's London Underwriters, and
disinterested in the outcome of the arbitration. Each party shall submit
its case to the arbitrators within 30 days of the appointment of the third
arbitrator.
D. The parties hereby waive all objections to the method of selection of the
arbitrators, it being the intention of both sides that all the arbitrators
be chosen from those submitted by the parties.
E. The arbitrators shall have the power to determine all procedural rules for
the holding of the arbitration including but not limited to inspection of
documents, examination of witnesses and any other matter relating to the
conduct of the arbitration. The arbitrators shall interpret this Contract
as an honorable engagement and not as merely a legal obligation; they are
relieved of all judicial formalities and may abstain from following the
strict rules of law. The arbitrators may award interest and costs. Each
party shall bear the expense of its own arbitrator and shall share equally
with the other party the expenses of the third arbitrator and of the
arbitration.
F. The decision in writing of the majority of the arbitrators shall be final
and binding upon both parties. Judgment may be entered upon the final
decision of the arbitrators in any court having jurisdiction. The
arbitration shall take place in Pinellas Park, Florida, unless otherwise
mutually agreed between the Company and the Reinsurer.
G. This Article shall remain in full force and effect in the event any other
provision of this Contract shall be found invalid or non-binding.
H. All time limitations stated in this Article may be amended by mutual
consent of the parties, and will be amended automatically to the extent
made necessary by any circumstances beyond the control of the parties.
ARTICLE XXV - SERVICE OF SUIT
(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. This
Article is not intended to conflict with or override the parties obligations to
arbitrate their disputes in accordance with Article XXIV.)
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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 XXVI - 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 XXVII - GOVERNING LAW
This Contract shall be governed as to performance, administration and
interpretation by the laws of the State of Florida exclusive of the rules with
respect to conflicts of law, except as to rules with respect to credit for
reinsurance in which case the applicable rules of all the states shall apply.
ARTICLE XXVIII - CONFIDENTIALITY
The Reinsurer, except with the express prior written consent of the Company,
shall not directly or indirectly communicate, disclose or divulge to any third
party any knowledge or information that may be acquired either directly or
indirectly as a result of the inspection of the Company's books, records and
papers. The restrictions as outlined in this Article shall not apply to
communication or disclosures that the Reinsurer is required to make to its
statutory auditors, retrocessionaires, legal counsel, arbitrators involved in
any arbitration procedures under this Contract or disclosures required upon
subpoena or other duly-issued order of a court or other governmental agency or
regulatory authority.
ARTICLE XXIX - SEVERABILITY
If any provision of this Contract should be invalid under applicable laws, the
latter shall control but only to the extent of the conflict without affecting
the remaining provisions of this Contract.
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ARTICLE XXX - INTERMEDIARY (BRMA 23A)
▇▇▇▇▇▇▇▇ Inc. 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 ▇▇▇▇▇▇▇▇ Inc. 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:
Pinellas Park, Florida, this 21st day of September in the year 2005.
/s/ ▇▇▇▇▇ ▇▇▇▇▇,
----------------------------------------
Senior Vice President & Treasurer
Liberty American Insurance Group, Inc.
(for and on behalf of the "Company")
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SCHEDULE A
FLORIDA ONLY EXCESS CATASTROPHE REINSURANCE CONTRACT
EFFECTIVE: JUNE 1, 2005
issued to
Liberty American Insurance Company
Pinellas Park, Florida
Mobile USA Insurance Company
Pinellas Park, Florida
and
any and all other companies which are now
or may hereafter become member companies of
Liberty American Insurance Group, Inc.
FIRST SECOND THIRD FOURTH FIFTH SIXTH
EXCESS EXCESS EXCESS EXCESS EXCESS EXCESS
---------- ----------- ----------- ----------- ------------ ------------
Company's
Retention $3,500,000 $ 7,000,000 $20,000,000 $35,000,000 $ 60,000,000 $120,000,000
Reinsurer's
Per Occurrence
Limit $3,500,000 $13,000,000 $15,000,000 $25,000,000 $ 60,000,000 $ 65,000,000
Reinsurer's
Term Limit $7,000,000 $26,000,000 $30,000,000 $50,000,000 $120,000,000 $130,000,000
Minimum
Premium $1,260,000 $ 3,640,000 $ 2,940,000 $ 2,400,000 $ 4,320,000 $ 3,640,000
Condominium,
Dwelling and
Homeowners
Premium Rate 1.855% 5.358% 4.327% 3.532% 6.358% 5.358%
Manufactured
Homeowners
Premium Rate 3.644% 10.526% 8.502% 6.940% 12.492% 10.526%
Deposit
Premium $1,575,000 $ 4,550,000 $ 3,675,000 $ 3,000,000 $ 5,400,000 $ 4,550,000
Quarterly
Deposit
Premium $ 393,750 $ 1,137,500 $ 918,750 $ 750,000 $ 1,350,000 $ 1,137,500
The figures listed above for each excess layer shall apply to each Subscribing
Reinsurer in the percentage share for that excess layer as expressed in its
Interests and Liabilities Agreement attached hereto.
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NUCLEAR INCIDENT EXCLUSION CLAUSE - PHYSICAL DAMAGE - REINSURANCE (U.S.A.)
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.
12/12/57
N.M.A. 1119
BRMA 35B
POOLS, ASSOCIATIONS AND SYNDICATES EXCLUSION CLAUSE
SECTION A:
Excluding:
(a) All business derived directly or indirectly from any Pool, Association
or Syndicate which maintains its own reinsurance facilities.
(b) Any Pool or Scheme (whether voluntary or mandatory) formed after March
1, 1968 for the purpose of insuring property whether on a country-wide
basis or in respect of designated areas. This exclusion shall not
apply to so-called Automobile Insurance Plans or other Pools formed to
provide coverage for Automobile Physical Damage.
SECTION B:
It is agreed that business written by the Company for the same perils, which is
known at the time to be insured by, or in excess of underlying amounts placed in
the following Pools, Associations or Syndicates, whether by way of insurance or
reinsurance, is excluded hereunder:
Industrial Risk Insurers,
Associated Factory Mutuals,
Improved Risk Mutuals,
Any Pool, Association or Syndicate formed for the purpose of writing
Oil, Gas or Petro-Chemical Plants and/or Oil or Gas Drilling Rigs,
United States Aircraft Insurance Group,
Canadian Aircraft Insurance Group,
Associated Aviation Underwriters,
American Aviation Underwriters.
Section B does not apply:
(a) Where The Total Insured Value over all interests of the risk in
question is less than $250,000,000.
(b) To interests traditionally underwritten as Inland Marine or stock
and/or contents written on a blanket basis.
(c) To Contingent Business Interruption, except when the Company is aware
that the key location is known at the time to be insured in any Pool,
Association or Syndicate named above, other than as provided for under
Section B(a).
(d) To risks as follows:
Offices, Hotels, Apartments, Hospitals, Educational Establishments,
Public Utilities (other than railroad schedules) and builder's risks
on the classes of risks specified in this subsection (d) only.
Where this clause attaches to Catastrophe Excesses, the following Section C is
added:
SECTION C:
Nevertheless the Reinsurer specifically agrees that liability accruing to the
Company from its participation in residual market mechanisms including but not
limited to:
(1) The following so-called "Coastal Pools":
Alabama Insurance Underwriting Association
Louisiana Insurance Underwriting Association
Mississippi Windstorm Underwriting Association
North Carolina Insurance Underwriting Association
South Carolina Windstorm and Hail Underwriting Association
Texas Windstorm Insurance Association
AND
(2) All "Fair Plan" and "Rural Risk Plan" business
Page 1 of 2
AND
(3) Citizens Property Insurance Corporation ("CPIC") and the California
Earthquake Authority ("CEA")
for all perils otherwise protected hereunder shall not be excluded, except,
however, that this reinsurance does not include any increase in such liability
resulting from:
(i) The inability of any other participant in such "Coastal Pool" and/or
"Fair Plan" and/or "Rural Risk Plan" and/or Residual Market Mechanisms
to meet its liability.
(ii) Any claim against such "Coastal Pool" and/or "Fair Plan" and/or "Rural
Risk Plan" and/or Residual Market Mechanisms, or any participant
therein, including the Company, whether by way of subrogation or
otherwise, brought by or on behalf of any insolvency fund (as defined
in the Insolvency Fund Exclusion Clause incorporated in this
Contract).
SECTION D:
(1) Notwithstanding Section C above, in respect of the CEA, where an
assessment is made against the Company by the CEA, the Company may
include in its Ultimate Net Loss only that assessment directly
attributable to each separate loss occurrence covered hereunder. The
Company's initial capital contribution to the CEA shall not be
included in the Ultimate Net Loss.
(2) Notwithstanding Section C above, in respect of CPIC, where an
assessment is made against the Company by CPIC, the maximum loss that
the Company may include in the Ultimate Net Loss in respect of any
loss occurrence hereunder shall not exceed the lesser of:
(a) The Company's assessment from CPIC for the accounting year in
which the loss occurrence commenced, or
(b) The product of the following:
(i) The Company's percentage participation in CPIC for the
accounting year in which the loss occurrence commenced; and
(ii) CPIC's total losses in such loss occurrence.
Any assessments for accounting years subsequent to that in which the loss
occurrence commenced may not be included in the Ultimate Net Loss hereunder.
Moreover, notwithstanding Section C above, in respect of CPIC, the Ultimate Net
Loss hereunder shall not include any monies expended to purchase or retire bonds
as a consequence of being a member of CPIC. For the purposes of this Contract,
the Company may not include in the Ultimate Net Loss any assessment or any
percentage assessment levied by CPIC to meet the obligations of an insolvent
insurer member or other party, or to meet any obligations arising from the
deferment by CPIC of the collection of monies.
NOTES: Wherever used herein the terms:
"Company" shall be understood to mean "Company," "Reinsured,"
"Reassured" or whatever other term is used in the
attached reinsurance document to designate the reinsured
company or companies.
"Agreement" shall be understood to mean "Agreement," "Contract,"
"Policy" or whatever other term is used to designate the
attached reinsurance document.
"Reinsurers" shall be understood to mean "Reinsurers," "Underwriters"
or whatever other term is used in the attached
reinsurance document to designate the reinsurer or
reinsurers.
Page 2 of 2
POLLUTION AND SEEPAGE EXCLUSION CLAUSE
This Contract excludes 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.
BRMA 39A
ELECTRONIC DATA ENDORSEMENT B
1. ELECTRONIC DATA EXCLUSION
Notwithstanding any provision to the contrary within the Contract or any
endorsement thereto, it is understood and agreed as follows:-
a) This Contract does not insure loss, damage, destruction, distortion,
erasure, corruption or alteration of ELECTRONIC DATA from any cause
whatsoever (including but not limited to COMPUTER VIRUS) or loss of
use, reduction in functionality, cost, expense of whatsoever nature
resulting therefrom, regardless of any other cause or event
contributing concurrently or in any other sequence to the loss.
ELECTRONIC DATA means facts, concepts and information converted to a
form useable for communications, interpretation or processing by
electronic and electromechanical data processing or electronically
controlled equipment and includes programs, software and other coded
instructions for the processing and manipulation of data or the
direction and manipulation of such equipment.
COMPUTER VIRUS means a set of corrupting, harmful or otherwise
unauthorized instructions or code including a set of maliciously
introduced unauthorized instructions or code, programmatic or
otherwise, that propagate themselves through a computer system or
network of whatsoever nature. COMPUTER VIRUS includes but is not
limited to "Trojan Horses," "worms" and "time or logic bombs."
b) However, in the event that a peril listed below results from any of
the matters described in paragraph a) above, this Contract, subject to
all its terms, conditions and exclusions, will cover physical damage
occurring during the Contract period to property insured by this
Contract directly caused by such listed peril.
Listed Perils
Fire
Explosion
2. ELECTRONIC DATA PROCESSING MEDIA VALUATION
Notwithstanding any provision to the contrary within the Contract or any
endorsement thereto, it is understood and agreed as follows:-
Should electronic data processing media insured by this Contract suffer
physical loss or damage insured by this Contract, then the basis of
valuation shall be the cost of the blank media plus the costs of copying
the ELECTRONIC DATA from back-up or from originals of a previous
generation. These costs will not include research and engineering nor any
costs of recreating, gathering or assembling such ELECTRONIC DATA. If the
media is not repaired, replaced or restored the basis of valuation shall be
the cost of the blank media. However this Contract does not insure any
amount pertaining to the value of such ELECTRONIC DATA to the Assured or
any other party, even if such ELECTRONIC DATA cannot be recreated, gathered
or assembled.
N.M.A. 2915 (25.1.01)
INTERESTS AND LIABILITIES AGREEMENT
of
American Re-Insurance Company
A Delaware Corporation
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
FLORIDA ONLY EXCESS CATASTROPHE REINSURANCE CONTRACT
EFFECTIVE: JUNE 1, 2005
issued to and duly executed by
Liberty American Insurance Company
Pinellas Park, Florida
Mobile USA Insurance Company
Pinellas Park, Florida
and
any and all other companies which are now
or may hereafter become member companies of
Liberty American Insurance Group, Inc.
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0% of the First Excess Catastrophe Reinsurance
0% of the Second Excess Catastrophe Reinsurance
0% of the Third Excess Catastrophe Reinsurance
0% of the Fourth Excess Catastrophe Reinsurance
3.000% of the Fifth Excess Catastrophe Reinsurance
2.000% of the Sixth Excess Catastrophe Reinsurance
This Agreement shall become effective on June 1, 2005, and shall continue in
force until May 31, 2006, both days inclusive, unless earlier 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:
Princeton, New Jersey, this 24th day of January in the year 2006.
/s/ ▇▇▇▇ ▇▇▇▇▇▇▇,
----------------------------------------
Senior Treaty Underwriter-Property
American Re-Insurance Company,
A Delaware Corporation
(LOGO)
INTERESTS AND LIABILITIES AGREEMENT
of
Aspen Insurance Limited
▇▇▇▇▇▇▇▇, Bermuda
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
FLORIDA ONLY EXCESS CATASTROPHE REINSURANCE CONTRACT
EFFECTIVE: JUNE 1, 2005
issued to and duly executed by
Liberty American Insurance Company
Pinellas Park, Florida
Mobile USA Insurance Company
Pinellas Park, Florida
and
any and all other companies which are now
or may hereafter become member companies of
Liberty American Insurance Group, Inc.
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
PW401859BBMD 25.000% of the First Excess Catastrophe Reinsurance
PW326531EBMD 15.000% of the Second Excess Catastrophe Reinsurance
PW326533ABMD 15.000% of the Third Excess Catastrophe Reinsurance
PW342583EBMD 21.000% of the Fourth Excess Catastrophe Reinsurance
0% of the Fifth Excess Catastrophe Reinsurance
0% of the Sixth Excess Catastrophe Reinsurance
This Agreement shall become effective on June 1, 2005, and shall continue in
force until May 31, 2006, both days inclusive, unless earlier 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:
▇▇▇▇▇▇▇▇, Bermuda, this 28th day of September in the year 2005.
(STAMP)
/s/ ▇▇▇▇▇ ▇▇▇▇▇▇,
----------------------------------------
Underwriter
Aspen Insurance Limited
(LOGO)
INTERESTS AND LIABILITIES AGREEMENT
of
AXIS Specialty Limited
Pembroke, Bermuda
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
FLORIDA ONLY EXCESS CATASTROPHE REINSURANCE CONTRACT
EFFECTIVE: JUNE 1, 2005
issued to and duly executed by
Liberty American Insurance Company
Pinellas Park, Florida
Mobile USA Insurance Company
Pinellas Park, Florida
and
any and all other companies which are now
or may hereafter become member companies of
Liberty American Insurance Group, Inc.
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0% of the First Excess Catastrophe Reinsurance
3.000% of the Second Excess Catastrophe Reinsurance 012568.0105__
2.900% of the Third Excess Catastrophe Reinsurance 012569.0105__
2.500% of the Fourth Excess Catastrophe Reinsurance 012570.0105__
1.700% of the Fifth Excess Catastrophe Reinsurance 012571.0105__
1.250% of the Sixth Excess Catastrophe Reinsurance 012572.0105__
This Agreement shall become effective on June 1, 2005, and shall continue in
force until May 31, 2006, both days inclusive, unless earlier 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:
Pembroke, Bermuda, this 11th day of October in the year 2005.
/s/ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇,
----------------------------------------
Vice President
AXIS Specialty Limited
(LOGO)
INTERESTS AND LIABILITIES AGREEMENT
of
General Reinsurance Corporation
Wilmington, Delaware
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
FLORIDA ONLY EXCESS CATASTROPHE REINSURANCE CONTRACT
EFFECTIVE: JUNE 1, 2005
issued to and duly executed by
Liberty American Insurance Company
Pinellas Park, Florida
Mobile USA Insurance Company
Pinellas Park, Florida
and
any and all other companies which are now
or may hereafter become member companies of
Liberty American Insurance Group, Inc.
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0% of the First Excess Catastrophe Reinsurance
0% of the Second Excess Catastrophe Reinsurance
7.000% of the Third Excess Catastrophe Reinsurance
10.000% of the Fourth Excess Catastrophe Reinsurance
0% of the Fifth Excess Catastrophe Reinsurance
2.700% of the Sixth Excess Catastrophe Reinsurance
subject to the following:
I - Schedule A is replaced by the attached Schedule A as respects the
Subscribing Reinsurer only.
II - Article XXX - Intermediary does not apply to the Subscribing
Reinsurer.
This Agreement shall become effective on June 1, 2005, and shall continue in
force until May 31, 2006, both days inclusive, unless earlier 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.
Page 1 - General Re I&L to Florida Only Excess Catastrophe Reinsurance Contract
Effective: June 1, 2005
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Stamford, Connecticut, this 5th day of January in the year 2006.
/s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇,
----------------------------------------
Vice President
General Reinsurance Corporation
IN WITNESS WHEREOF, the Company by its duly authorized representative has
executed this Agreement as of the date undermentioned at:
Pinellas Park, Florida, this 12th day of January in the year 2006.
/s/ ▇▇▇▇▇ ▇▇▇▇▇,
----------------------------------------
President and CEO
Liberty American Insurance Group Inc.
(for and on behalf of the "Company")
Page 2 - General Re I&L to Florida Only Excess Catastrophe Reinsurance Contract
Effective: June 1, 2005
SCHEDULE A
FLORIDA ONLY EXCESS CATASTROPHE REINSURANCE CONTRACT
EFFECTIVE: JUNE 1, 2005
issued to
Liberty American Insurance Company
Pinellas Park, Florida
Mobile USA Insurance Company
Pinellas Park, Florida
and
any and all other companies which are now
or may hereafter become member companies of
Liberty American Insurance Group, Inc.
THIRD FOURTH SIXTH
EXCESS EXCESS EXCESS
---------------- ----------------- -----------------
Company's 7.000% of 10.000% of 2.700% of
Retention $20,000,000 $35,000,000 $120,000,000
Reinsurer's $7.000% of 10.000% of 2.700% of
Per Occurrence $15,000,000 $25,000,000 $65,000,000
Limit
Reinsurer's 7.000% of 10.000% of $2.700% of
Term Limit $30,000,000 $50,000,000 $130,000,000
Minimum $196,000 $228,000 $93,600
Premium
Condominium 7.000% of 4.111% 10.000% of 3.355% 2.700% of 5.090%
Dwelling and
Homeowners
Premium Rate
Manufactured 7.000% of 8.077% 10.000% of 6.593% 2.700% of 10.000%
Homeowners
Premium Rate
Deposit $245,000 $285,000 $117,000
Premium
Quarterly $61,250 $71,250 $29,250
Deposit
Premium
Page 3 - General Re I&L to Florida Only Excess Catastrophe Reinsurance Contract
Effective: June 1, 2005
INTERESTS AND LIABILITIES AGREEMENT
of
Hannover Re (Bermuda), Ltd.
▇▇▇▇▇▇▇▇, Bermuda
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
FLORIDA ONLY EXCESS CATASTROPHE REINSURANCE CONTRACT
EFFECTIVE: JUNE 1, 2005
issued to and duly executed by
Liberty American Insurance Company
Pinellas Park, Florida
Mobile USA Insurance Company
Pinellas Park, Florida
and
any and all other companies which are now
or may hereafter become member companies of
Liberty American Insurance Group, Inc.
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above: Refs:
0% of the First Excess Catastrophe Reinsurance
0% of the Second Excess Catastrophe Reinsurance
0% of the Third Excess Catastrophe Reinsurance
2.500% of the Fourth Excess Catastrophe Reinsurance UZ347 320405
8.000% of the Fifth Excess Catastrophe Reinsurance UZ347 __0505
15.000% of the Sixth Excess Catastrophe Reinsurance UZ347 __0605
This Agreement shall become effective on June 1, 2005, and shall continue in
force until May 31, 2006, both days inclusive, unless earlier 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 any action, suit or proceeding to enforce the Subscribing Reinsurer's
obligations under the attached Contract, service of process may be made upon
Mendes & Mount, ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
▇▇▇▇▇▇▇▇, Bermuda, this 11th day of October in the year 2005.
(STAMP)
/s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇, /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇,
------------------------------------- ----------------------------------------
Assistant Underwriter; Underwriter
Hannover Re (Bermuda), Ltd. Hannover Re (Bermuda), Ltd.
(LOGO)
INTERESTS AND LIABILITIES AGREEMENT
of
Montpelier Reinsurance Limited
Hamilton, Bermuda
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
FLORIDA ONLY EXCESS CATASTROPHE REINSURANCE CONTRACT
EFFECTIVE: JUNE 1, 2005
issued to and duly executed by
Liberty American Insurance Company
Pinellas Park, Florida
Mobile USA Insurance Company
Pinellas Park, Florida
and
any and all other companies which are now
or may hereafter become member companies of
Liberty American Insurance Group, Inc.
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0% of the First Excess Catastrophe Reinsurance
4.800% of the Second Excess Catastrophe Reinsurance
4.075% of the Third Excess Catastrophe Reinsurance
5.000% of the Fourth Excess Catastrophe Reinsurance
3.750% of the Fifth Excess Catastrophe Reinsurance
4.000% of the Sixth Excess Catastrophe Reinsurance
This Agreement shall become effective on June 1, 2005, and shall continue in
force until May 31, 2006, both days inclusive, unless earlier 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:
▇▇▇▇▇▇▇▇, Bermuda, this 18th day of October in the year 2005.
/s/ ▇▇▇▇▇ ▇▇▇▇▇,
----------------------------------------
Vice President-Contracts Administrator
▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇ Limited
(LOGO)
INTERESTS AND LIABILITIES AGREEMENT
of
Platinum Underwriters Reinsurance, Inc.
Baltimore, Maryland
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
FLORIDA ONLY EXCESS CATASTROPHE REINSURANCE CONTRACT
EFFECTIVE: JUNE 1, 2005
issued to and duly executed by
Liberty American Insurance Company
Pinellas Park, Florida
Mobile USA Insurance Company
Pinellas Park, Florida
and
any and all other companies which are now
or may hereafter become member companies of
Liberty American Insurance Group, Inc.
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0% of the First Excess Catastrophe Reinsurance
3.000% of the Second Excess Catastrophe Reinsurance
2.850% of the Third Excess Catastrophe Reinsurance
5.000% of the Fourth Excess Catastrophe Reinsurance
3.750% of the Fifth Excess Catastrophe Reinsurance
0 of the Sixth Excess Catastrophe Reinsurance
This Agreement shall become effective on June 1, 2005, and shall continue in
force until May 31, 2006, both days inclusive, unless earlier 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 27th day of September in the year 2005.
/s/ ▇▇▇▇▇▇ ▇▇▇▇▇,
----------------------------------------
Assistant Vice President
Platinum Underwriters Reinsurance, Inc.
(STAMP)
(LOGO)
INTERESTS AND LIABILITIES AGREEMENT
of
PXRE Reinsurance Limited
▇▇▇▇▇▇▇▇, Bermuda
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
FLORIDA ONLY EXCESS CATASTROPHE REINSURANCE CONTRACT
EFFECTIVE: JUNE 1, 2005
issued to and duly executed by
Liberty American Insurance Company
Pinellas Park, Florida
Mobile USA Insurance Company
Pinellas Park, Florida
and
any and all other companies which are now
or may hereafter become member companies of
Liberty American Insurance Group, Inc.
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0% of the First Excess Catastrophe Reinsurance REFERENCES
2.400% of the Second Excess Catastrophe Reinsurance 2005-1998
1.700% of the Third Excess Catastrophe Reinsurance 2005-1999
3.000% of the Fourth Excess Catastrophe Reinsurance 2005-2000
2.150% of the Fifth Excess Catastrophe Reinsurance 2005-2001
1.500% of the Sixth Excess Catastrophe Reinsurance 2005-2002
This Agreement shall become effective on June 1, 2005, and shall continue in
force until May 31, 2006, both days inclusive, unless earlier 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:
▇▇▇▇▇▇▇▇, Bermuda, this 27th day of September in the year 2005.
/s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇,
----------------------------------------
Senior Vice President-North American
Treaty
PXRE Reinsurance Limited
(LOGO)
INTERESTS AND LIABILITIES AGREEMENT
of
Rosemont Reinsurance Limited
▇▇▇▇▇▇▇▇, Bermuda
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
FLORIDA ONLY EXCESS CATASTROPHE REINSURANCE CONTRACT
EFFECTIVE: JUNE 1, 2005
issued to and duly executed by
Liberty American Insurance Company
Pinellas Park, Florida
Mobile USA Insurance Company
Pinellas Park, Florida
and
any and all other companies which are now
or may hereafter become member companies of
Liberty American Insurance Group, Inc.
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
2.000% of the First Excess Catastrophe Reinsurance
1.800% of the Second Excess Catastrophe Reinsurance
1.100% of the Third Excess Catastrophe Reinsurance
2.000% of the Fourth Excess Catastrophe Reinsurance
2.150% of the Fifth Excess Catastrophe Reinsurance
1.500% of the Sixth Excess Catastrophe Reinsurance
This Agreement shall become effective on June 1, 2005, and shall continue in
force until May 31, 2006, both days inclusive, unless earlier 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:
▇▇▇▇▇▇▇▇, Bermuda, this 28th day of September in the year 2005.
/s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇,
----------------------------------------
Senior U.S. Property Underwriter
▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇ Limited
(LOGO)
INTERESTS AND LIABILITIES AGREEMENT
of
Swiss Reinsurance America Corporation
Armonk, New York
through
Swiss Re Underwriters Agency, Inc.
Calabasas, California
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
FLORIDA ONLY EXCESS CATASTROPHE REINSURANCE CONTRACT
EFFECTIVE: JUNE 1, 2005
issued to and duly executed by
Liberty American Insurance Company
Pinellas Park, Florida
Mobile USA Insurance Company
Pinellas Park, Florida
and
any and all other companies which are now
or may hereafter become member companies of
Liberty American Insurance Group, Inc.
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0% of the First Excess Catastrophe Reinsurance
0% of the Second Excess Catastrophe Reinsurance
0% of the Third Excess Catastrophe Reinsurance
0% of the Fourth Excess Catastrophe Reinsurance
10.000% of the Fifth Excess Catastrophe Reinsurance
10.000% of the Sixth Excess Catastrophe Reinsurance
This Agreement shall become effective on June 1, 2005, and shall continue in
force until May 31, 2006, both days inclusive, unless earlier 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:
Calabasas, California, this 28th day of December in the year 2005.
/s/ ▇▇▇ ▇▇▇▇▇▇▇▇,
----------------------------------------
Vice President
Swiss Re Underwriters Agency, Inc.
(for Swiss Reinsurance America
Corporation)
(LOGO)
INTERESTS AND LIABILITIES AGREEMENT
of
Transatlantic Reinsurance Company
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
FLORIDA ONLY EXCESS CATASTROPHE REINSURANCE CONTRACT
EFFECTIVE: JUNE 1, 2005
issued to and duly executed by
Liberty American Insurance Company
Pinellas Park, Florida
Mobile USA Insurance Company
Pinellas Park, Florida
and
any and all other companies which are now
or may hereafter become member companies of
Liberty American Insurance Group, Inc.
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0% of the First Excess Catastrophe Reinsurance
0% of the Second Excess Catastrophe Reinsurance
0% of the Third Excess Catastrophe Reinsurance
0% of the Fourth Excess Catastrophe Reinsurance
4.750% of the Fifth Excess Catastrophe Reinsurance
13.500% of the Sixth Excess Catastrophe Reinsurance
This Agreement shall become effective on June 1, 2005, and shall continue in
force until May 31, 2006, both days inclusive, unless earlier 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 13th day of February in the year 2006.
/s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇,
----------------------------------------
Underwriting Assistant
Transatlantic Reinsurance Company
(LOGO)
INTERESTS AND LIABILITIES AGREEMENT
of
XL Re Ltd
▇▇▇▇▇▇▇▇, Bermuda
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
FLORIDA ONLY EXCESS CATASTROPHE REINSURANCE CONTRACT
EFFECTIVE: JUNE 1, 2005
issued to and duly executed by
Liberty American Insurance Company
Pinellas Park, Florida
Mobile USA Insurance Company
Pinellas Park, Florida
and
any and all other companies which are now
or may hereafter become member companies of
Liberty American Insurance Group, Inc.
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0% of the First Excess Catastrophe Reinsurance
0% of the Second Excess Catastrophe Reinsurance
0% of the Third Excess Catastrophe Reinsurance
8.000% of the Fourth Excess Catastrophe Reinsurance
4.750% of the Fifth Excess Catastrophe Reinsurance
2.250% of the Sixth Excess Catastrophe Reinsurance
This Agreement shall become effective on June 1, 2005, and shall continue in
force until May 31, 2006, both days inclusive, unless earlier 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:
▇▇▇▇▇▇▇▇, Bermuda, this 28th day of December in the year 2005.
/s/ ▇▇▇▇ ▇▇▇▇▇,
----------------------------------------
Assistant Vice President
XL Re Ltd
(LOGO)
INTERESTS AND LIABILITIES AGREEMENT
of
Partner Reinsurance Company
Pembroke Parish, Bermuda
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
FLORIDA ONLY EXCESS CATASTROPHE REINSURANCE CONTRACT
EFFECTIVE: JUNE 1, 2005
issued to and duly executed by
Liberty American Insurance Company
Pinellas Park, Florida
Mobile USA Insurance Company
Pinellas Park, Florida
and
any and all other companies which are now
or may hereafter become member companies of
Liberty American Insurance Group, Inc.
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0% of the First Excess Catastrophe Reinsurance
3.750% of the Second Excess Catastrophe Reinsurance T309859
7.000% of the Third Excess Catastrophe Reinsurance T309860
10.000% of the Fourth Excess Catastrophe Reinsurance T309861
9.000% of the Fifth Excess Catastrophe Reinsurance T309862
9.500% of the Sixth Excess Catastrophe Reinsurance T309864
This Agreement shall become effective on June 1, 2005, and shall continue in
force until May 31, 2006, both days inclusive, unless earlier 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:
Pembroke Parish, Bermuda, this 16th day of January in the year 2006.
/s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇,
----------------------------------------
Senior Vice President-Reinsurance
Operations-Bermuda
Partner Reinsurance Company
(LOGO)
INTERESTS AND LIABILITIES AGREEMENT
of
Munchener Ruckversicherungs-Gesellschaft
Munich, Germany
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
FLORIDA ONLY EXCESS CATASTROPHE REINSURANCE CONTRACT
EFFECTIVE: JUNE 1, 2005
issued to and duly executed by
Liberty American Insurance Company
Pinellas Park, Florida
Mobile USA Insurance Company
Pinellas Park, Florida
and
any and all other companies which are now
or may hereafter become member companies of
Liberty American Insurance Group, Inc.
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0% of the First Excess Catastrophe Reinsurance
0% of the Second Excess Catastrophe Reinsurance
0% of the Third Excess Catastrophe Reinsurance
0% of the Fourth Excess Catastrophe Reinsurance
4.500% of the Fifth Excess Catastrophe Reinsurance
4.500% of the Sixth Excess Catastrophe Reinsurance
This Agreement shall become effective on June 1, 2005, and shall continue in
force until May 31, 2006, both days inclusive, unless earlier 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:
Munich, Germany, this 16th day of January in the year 2006.
(STAMP)
/s/ ▇▇▇▇▇▇ ▇▇▇▇▇, /s/ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇,
------------------------------------ --------------------------------------
Property Treaty Underwriter, CUGC; Property Treaty Assistant Underwriter,
Munchener CUGC
Ruckversicherungs-Gesellschaft Munchener
Ruckversicherungs-Gesellschaft
(LOGO)
INTERESTS AND LIABILITIES AGREEMENT
of
Ascot Underwriting Syndicate 1414
London, England
through
Ascot Insurance Services Limited
London, England
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
FLORIDA ONLY EXCESS CATASTROPHE REINSURANCE CONTRACT
EFFECTIVE: JUNE 1, 2005
issued to and duly executed by
Liberty American Insurance Company
Pinellas Park, Florida
Mobile USA Insurance Company
Pinellas Park, Florida
and
any and all other companies which are now
or may hereafter become member companies of
Liberty American Insurance Group, Inc.
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
5.000% of the First Excess Catastrophe Reinsurance
3.750% of the Second Excess Catastrophe Reinsurance
7.000% of the Third Excess Catastrophe Reinsurance
10.000% of the Fourth Excess Catastrophe Reinsurance
6.750% of the Fifth Excess Catastrophe Reinsurance
6.750% of the Sixth Excess Catastrophe Reinsurance
This Agreement shall become effective on June 1, 2005, and shall continue in
force until May 31, 2006, both days inclusive, unless earlier 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:
London, England, this 28th day of February in the year 2006.
/s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇,
----------------------------------------
Treaty Reinsurance Assistant Underwriter
Ascot Insurance Services Limited
(for and on behalf of Ascot Underwriting
Syndicate 1414)
(LOGO)
INTERESTS AND LIABILITIES AGREEMENT
of
AXA RE
Paris, France
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
FLORIDA ONLY EXCESS CATASTROPHE REINSURANCE CONTRACT
EFFECTIVE: JUNE 1, 2005
issued to and duly executed by
Liberty American Insurance Company
Pinellas Park, Florida
Mobile USA Insurance Company
Pinellas Park, Florida
and
any and all other companies which are now
or may hereafter become member companies of
Liberty American Insurance Group, Inc.
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0% of the First Excess Catastrophe Reinsurance
6.000% of the Second Excess Catastrophe Reinsurance
5.700% of the Third Excess Catastrophe Reinsurance
10.000% of the Fourth Excess Catastrophe Reinsurance
9.500% of the Fifth Excess Catastrophe Reinsurance
6.500% of the Sixth Excess Catastrophe Reinsurance
This Agreement shall become effective on June 1, 2005, and shall continue in
force until May 31, 2006, both days inclusive, unless earlier 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:
Paris, France, this 4th day of November in the year 2005.
/s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇,
----------------------------------------
Vice President
▇▇▇ ▇▇
(STAMP)
(LOGO)
INTERESTS AND LIABILITIES AGREEMENT
of
Certain Underwriting Members of ▇▇▇▇▇'▇
shown in the Signing Schedules attached hereto
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
FLORIDA ONLY EXCESS CATASTROPHE REINSURANCE CONTRACT
EFFECTIVE: JUNE 1, 2005
issued to and duly executed by
Liberty American Insurance Company
Pinellas Park, Florida
Mobile USA Insurance Company
Pinellas Park, Florida
and
any and all other companies which are now
or may hereafter become member companies of
Liberty American Insurance Group, Inc.
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
68.000% of the First Excess Catastrophe Reinsurance
56.500% of the Second Excess Catastrophe Reinsurance
45.675% of the Third Excess Catastrophe Reinsurance
11.000% of the Fourth Excess Catastrophe Reinsurance
26.250% of the Fifth Excess Catastrophe Reinsurance
19.050% of the Sixth Excess Catastrophe Reinsurance
This Agreement shall become effective on June 1, 2005, and shall continue in
force until May 31, 2006, both days inclusive, unless earlier 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 any action, suit or proceeding to enforce the Subscribing Reinsurer's
obligations under the attached Contract, service of process may be made upon
Mendes & Mount, ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇.
Signed for and on behalf of the Subscribing Reinsurer in the Signing Schedules
attached hereto.
(STAMP)
(LOGO)
