Commercial Fund Sample Clauses
Commercial Fund. (i) Proportional: The Company will cede to FCIC from zero to sixty-five percent (65%) of total net book premium and associated liability for ultimate net losses on eligible livestock price insurance contracts, as designated in its Plan of Operations for the reinsurance year. Such percentage designation must be made in five percent (5%) increments.
(ii) Non-Proportional: Retained premium and associated liability from eligible livestock price insurance contracts designated to the Commercial Fund are subject to the following two layers of stop-loss coverage and premium:
Commercial Fund a. Proportional: The Company will cede to FCIC from zero to fifty percent (50%) of total net book premium and associated liability for ultimate net losses on eligible livestock price insurance contracts, as designated in its Plan of Operations for any reinsurance year. Such percentage designation must be made in five percent (5%) increments.
Commercial Fund. After the retentions and assignments under paragraph (4), the amount of underwriting loss retained by the Company for the Commercial Fund will be calculated within each State as the sum of the following:
(i) For that portion of the underwriting loss amount for which the Ccompany’s loss ratio exceeds 100 percent and is less than or equal to 160 percent, the Company shall retain an amount of the underwriting loss equal to the product of the following:
(I) Iits retained net book premium;
(II) Tthe lesser of the Company’s actual loss ratio or 160 percent, minus 100 percent; and
(III) Tthe following percentage for the applicable State Group: State Group 1 65.0 percent State Groups 2 and 3 42.545.0 percent
(ii) For that portion of the underwriting loss amount for which the Ccompany’s loss ratio exceeds 160 percent and is less than or equal to 220 percent, the Company shall retain an amount of the underwriting loss equal to the product of the following:
(I) Iits retained net book premium;
(II) Tthe lesser of the Company’s actual loss ratio or 220 percent, minus 160 percent; and
(III) Tthe following percentage for the applicable State Group: State Group 1 45.0 percent State Groups 2 and 3 20.0 percent
(iii) For that portion of the underwriting loss amount for which the Ccompany’s loss ratio exceeds 220 percent and is less than or equal to 500 percent, the Company shall retain an amount of the underwriting loss equal to the product of the following:
(I) Iits retained net book premium;
(II) Tthe lesser of the Company’s actual loss ratio or 500 percent, minus 220 percent; and
(III) Tthe following percentage for the applicable State Group: State Group 1 10.0 percent State Groups 2 and 3 5.0 percent
(iv) FCIC shallwill assume 100 percent of that portion of the underwriting loss amount for by which the Company’s loss ratio exceeds 500 percent.
Commercial Fund a. Any eligible crop insurance contract reinsured under this Agreement not included in designations to the Assigned Risk Fund or the Developmental Fund will be included in the Commercial Fund.
b. The Company must retain at least fifty percent (50%) of the net book premium and associated liability for ultimate net losses on eligible crop insurance contracts designated to the Commercial Fund within each state. The Company may retain a greater percentage of the net book premiums and associated liability for ultimate net losses within each state whenever it designates a percentage greater than fifty percent (50%) in its Plan of Operation for any reinsurance year. Such percentage designations must be made in five percent (5%) increments. FCIC will assume the liability for ultimate net losses not retained by the Company within each state in exchange for an equal percentage of the associated net book premiums included in the Commercial Fund in that state.