AMENDMENT NO.1 TO REINSURANCE POOLING AGREEMENT
DATED JULY 1, 1998
Penn-America Insurance Company ("PAIC") and Penn-Star Insurance Company
("PSIC"), parties to the Reinsurance Pooling Agreement dated July 1, 1998 ("the
Agreement"), intending to be legally bound, due hereby modify and amend the
Agreement, effective July 1, 2002, as follows:
WHEREAS, PAIC and PSIC are both currently admitted in the State of
California, among others; and,
WHEREAS, PSIC desires to withdraw its Certificate of Authority as an
admitted insurer so as to assume surplus lines authority in that State;
and,
WHEREAS, the California Department of Insurance requires, in part, that
PAIC substitute for and succeed to all of the rights and liabilities of
PSIC under the Agreement;
NOW THEREFORE, in consideration of the foregoing, PAIC and PSIC agree
that effective July 1, 2002, the Agreement is amended to add the
following:
"ARTICLE 2(a) -CALIFORNIA LIABILITIES
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At such time as PSIC withdraws its license as an admitted insurer in
California, PAIC shall become primarily liable for 100% of the
California liabilities of PSIC existing prior to the effective date of
said withdrawal.
All other terms and conditions of the Agreement remain the same; and this
Amendment in no way affects the parties' obligations otherwise under the
Agreement.
IN WITNESS WHEREOF, the parties have hereunto set their hands in the presence
of:
PENN-AMERICA INSURANCE COMPANY
BY:
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PENN-STAR INSURANCE COMPANY
BY:
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