Common use of Actuarial and Other Services Clause in Contracts

Actuarial and Other Services. AUL agrees to provide actuarial support and other services to the Company with respect to the Covered Business, including the following: (a) preparation of pricing indications and projections of profitability on Covered Business; (b) utilizing and analyzing the results of Risk Modeling Systems; (c) compiling aggregate limit and probable maximum loss data; (d) analyzing historical loss information and estimating loss reserves, as applicable; (e) booking of event specific paid loss and reserve including setting up of Company additional case reserves; (f) booking of contract level IBNR; (g) preparation of quarterly claims and financial reports with contract level information; (h) participation of quarterly QCR meetings with underwriters; (i) preparation of quarterly report explaining financial results for the quarter; (j) preparation of quarterly exposure aggregation accumulation report; (k) assist the Company in the formulation of the Company’s business plan, to be revised at least annually, including assisting the Company in the identification of and monitoring of the Company’s peer group (the universe of publicly-traded insurers underwriting risks which, in the reasonable judgment of the Company, are comparable to those being underwritten by the Company); (l) assist the Company in identifying (i) each contract it enters into on behalf of the Company that is not properly classified as reinsurance for statutory accounting and U.S. federal income tax purposes, and (ii) the level of risk and appropriate reserves being assumed for those contracts properly treated as insurance for such purposes; and (m) update the Company at least quarterly as to the level of premium earned or expected to be earned for the current fiscal year, and advise whether, in its view, the Company’s current level of reserves (i) are appropriate for the risks assumed by the Company and (ii) consistent with the level of reserves carried by companies within the Company’s peer group. If notified by the Company that the level of premium income earned or expected to be earned by the Company is falling short of the objectives set forth in the business plan (i.e., the objective metrics to be agreed), AUL will offer such advice as is reasonably requested by the Company to permit the Company to examine (i) whether the reserves then held by the Company are excessive in light of the risks it has assumed, (ii) the current state of the property and casualty reinsurance market, (iii) the Company’s existing and potential lines of business and (iv) the Company’s current objectives. In such event, the Company and AUL will work together in good faith with a view towards determining the extent to which the premium earned by the Company can be increased by adding contracts which are within the Underwriting Guidelines and Business Framework, and are profitable on a modeled expected basis, or the taking of other actions, such as returning capital to shareholders of the Company, without risking the Company's then-current Rating Agency ratings.

Actuarial and Other Services. AUL agrees to provide actuarial support and other services to the Company with respect to the Covered Business, including the following: (a) preparation of pricing indications and projections of profitability on Covered Business; (b) utilizing and analyzing the results of Risk Modeling Systems; (c) compiling aggregate limit and probable maximum loss data; (d) analyzing historical loss information and estimating loss reservesreserves at the contract level (including original contracts ceded via the AUL Affiliate Cessions that generate (or are projected to generate) $10 million or more of annual premium), as applicable; (e) booking of event specific paid loss and reserve including setting up of Company additional case reserves; (f) booking of contract level IBNR; (g) preparation of quarterly claims and financial reports with contract level information; (h) participation of quarterly QCR meetings with underwriters; (i) preparation of quarterly report explaining financial results for the quarter; (j) preparation of quarterly exposure aggregation accumulation reportreport for PMLs arising from natural catastrophes, and at least annually or as reasonably requested, modeled PML arising from any Man Made RDS, Pandemic, NBCR, Terrorism and Credit Political RDS, and largest known aggregate limit exposed in excess of $10 million per Original Named Insured for each line of business; (k) assist the Company in the formulation of the Company’s business plan, to be revised at least annually, including assisting the Company in the identification of and monitoring of the Company’s peer group (the universe of publicly-traded insurers underwriting risks which, in the reasonable judgment of the Company, are comparable to those being underwritten by the Company); (l) assist the Company in identifying (i) each contract it enters into on behalf of the Company that is not properly classified as reinsurance for statutory accounting and U.S. federal income tax purposes, and (ii) the level of risk and appropriate reserves being assumed for those contracts properly treated as insurance for such purposes; and (m) update the Company at least quarterly as to the level of premium earned or expected to be earned for the current fiscal year, and advise whether, in its view, the Company’s current level of reserves (i) are appropriate for the risks assumed by the Company and (ii) consistent with the level of reserves carried by companies within the Company’s peer group. If notified by the Company that the level of premium income earned or expected to be earned by the Company is falling short of the objectives set forth in the business plan (i.e., the objective metrics to be agreed), AUL will offer such advice as is reasonably requested by the Company to permit the Company to examine (i) whether the reserves then held by the Company are excessive in light of the risks it has assumed, (ii) the current state of the property and casualty reinsurance market, (iiiii) the Company’s existing and potential lines of business and (iviii) the Company’s current objectives. In such event, the Company and AUL will work together in good faith with a view towards determining the extent to which the premium earned by the Company can be increased by adding contracts which are within the Underwriting Guidelines and Business Framework, and are profitable on a modeled expected basis, or the taking of other actions, such as returning capital to shareholders of the Company, without risking the Company's then-current Rating Agency ratings.

Actuarial and Other Services. AUL agrees to provide actuarial support and other services to the Company with respect to the Covered Business, including the following: (a) preparation of pricing indications and projections of profitability on Covered Business; (b) utilizing and analyzing the results of Risk Modeling Systems, as required; (c) compiling aggregate limit and probable maximum loss data; (d) analyzing historical loss information and estimating loss reserves, as applicable; (e) booking of event specific paid loss and reserve including setting up of Company additional case reserves; (f) booking of contract level IBNR; (g) preparation of quarterly claims and financial reports with contract level information; (h) participation of quarterly QCR meetings with underwriters; (i) preparation of quarterly report explaining financial results for the quarter; (ji) preparation of quarterly exposure aggregation accumulation report; (kj) assist the Company in the formulation of the Company’s business plan, to be revised at least annually, including assisting the Company in the identification of and monitoring of the Company’s peer group (the universe of publicly-traded insurers underwriting risks which, in the reasonable judgment of the Company, are comparable to those being underwritten by the Company); (lk) assist the Company in identifying (i) each contract it enters into on behalf of the Company that is not properly classified as reinsurance for statutory accounting and U.S. federal income tax purposes, and (ii) the level of risk and appropriate reserves being assumed for those contracts properly treated as insurance for such purposesCovered Business; and (ml) update the Company at least quarterly as to the level of premium earned or expected to be earned for the current fiscal year, and advise whether, in its view, the Company’s current level of reserves (i) are appropriate for the risks assumed by the Company and (ii) consistent with the level of reserves carried by companies within the Company’s peer group. If notified by the Company that the level of premium income earned or expected to be earned by the Company is falling short of the objectives set forth in the business plan (i.e., the objective metrics to be agreed), AUL will offer such advice as is reasonably requested by the Company to permit the Company to examine (i) whether the reserves then held by the Company are excessive in light of the risks it has assumed, (ii) the current state of the property and casualty reinsurance insurance market, (iiiii) the Company’s existing and potential lines of business and (iviii) the Company’s current objectives. In such event, the Company and AUL will work together in good faith with a view towards determining the extent to which the premium earned by the Company can be increased by adding contracts which are within the Underwriting Guidelines and Business Framework, and are profitable on a modeled expected basis, or the taking of other actions, such as returning capital to shareholders of the CompanyShareholders, without risking the Company's ’s then-current Rating Agency ratings.