Common use of COMMISSION ADJUSTMENT Clause in Contracts

COMMISSION ADJUSTMENT. A. The provisional commission allowed the Company shall be adjusted in accordance with the provisions set forth herein. The adjusted commission rate shall be calculated as follows and be applied to Net Premiums Earned: 1. if the ratio of Losses Incurred to Net Premiums Earned is 67.50% or greater, the adjusted commission rate shall be 26.50%; 2. if the ratio of Losses Incurred to Net Premiums Earned is less than 67.50%, but not less than 63.50%, the adjusted commission rate shall be 26.50%, plus the difference in percentage points between 67.50% and the actual ratio of Losses Incurred to Net Premiums Earned; Effective: October 1, 2010 U4VT0004 10 of 36 DOC: December 23, 2010 3. if the ratio of Losses Incurred to Net Premiums Earned is 63.50% or less, the adjusted commission rate shall be 30.50%. B. Within 30 days after 12 months after the expiration date of this Contract, and annually thereafter until all losses subject hereto have been finally settled, the Company shall calculate and report the adjusted commission on Net Premiums Earned. If the adjusted commission on Net Premiums Earned is less than commissions previously allowed by the Reinsurer on Net Premiums Earned, the Company shall remit the difference to the Reinsurer with its report. If the adjusted commission on Net Premiums Earned is greater than commissions previously allowed by the Reinsurer on Net Premiums Earned, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company’s report.

COMMISSION ADJUSTMENT. A. The provisional commission allowed the Company shall be adjusted in accordance with the provisions set forth herein. The adjusted commission rate shall be calculated as follows and be applied to Net Premiums Earned: 1. if the ratio of Losses Incurred to Net Premiums Earned is 67.50% or greater, the adjusted commission rate shall be 26.50%;; Effective: January 1, 0000 XXX: December 28, 2010 U4VT0004 10 of 36 2. if the ratio of Losses Incurred to Net Premiums Earned is less than 67.50%, but not less than 63.50%, the adjusted commission rate shall be 26.50%, plus the difference in percentage points between 67.50% and the actual ratio of Losses Incurred to Net Premiums Earned; Effective: October 1, 2010 U4VT0004 10 of 36 DOC: December 23, 2010; 3. if the ratio of Losses Incurred to Net Premiums Earned is 63.50% or less, the adjusted commission rate shall be 30.50%. B. Within 30 days after 12 months after the expiration date of this Contract, and annually thereafter until all losses subject hereto have been finally settled, the Company shall calculate and report the adjusted commission on Net Premiums Earned. If the adjusted commission on Net Premiums Earned is less than commissions previously allowed by the Reinsurer on Net Premiums Earned, the Company shall remit the difference to the Reinsurer with its report. If the adjusted commission on Net Premiums Earned is greater than commissions previously allowed by the Reinsurer on Net Premiums Earned, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company’s report.

COMMISSION ADJUSTMENT. A. The provisional commission allowed the Company shall be adjusted in accordance with the provisions set forth herein. The adjusted commission rate shall be calculated as follows and be applied to Net Premiums Earned: 1. if the ratio of Losses Incurred to Net Premiums Earned is 67.5073.00% or greater, the adjusted commission rate shall be 26.5021.00%; 2. if the ratio of Losses Incurred to Net Premiums Earned is less than 67.5073.00%, but not less than 63.5058.00%, the adjusted commission rate shall be 26.5021.00%, plus 100.00% of the difference in percentage points between 67.5073.00% and the actual ratio of Losses Incurred to Net Premiums Earned; Effective: October 1, 2010 U4VT0004 10 of 36 DOC: December 23, 2010; 3. if the ratio of Losses Incurred to Net Premiums Earned is 63.5058.00% or less, the adjusted commission rate shall be 30.5036.00%. B. Within 30 days after the end of each calendar quarter, beginning with the calendar quarter ending 12 months after the expiration date or termination of this Contract, and annually thereafter until all losses subject hereto have been finally settled, the Company shall calculate and report the adjusted commission on Net Premiums Earned. If the adjusted commission on Net Premiums Earned is less than commissions previously allowed by the Reinsurer on Net Premiums Earned, the Company shall remit the difference to the Reinsurer with its report. If If, for any calculation more than 24 months after expiration or termination of this Contract, the adjusted commission on Net Premiums Earned is greater than commissions previously allowed by the Reinsurer on Net Premiums Earned, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company’s report.

COMMISSION ADJUSTMENT. A. The provisional commission allowed the Company shall be adjusted in accordance with the provisions set forth herein. The adjusted commission rate shall be calculated as follows and be applied to Net Premiums Earned: 1. if the ratio of Losses Incurred to Net Premiums Earned is 67.5073.0% or greater, the adjusted commission rate shall be 26.5022.0%; 2. if the ratio of Losses Incurred to Net Premiums Earned is less than 67.5073.0%, but not less than 63.5055.0%, the adjusted commission rate shall be 26.5022.0%, plus 100.0% of the difference in percentage points between 67.5073.0% and the actual ratio of Losses Incurred to Net Premiums Earned; Effective: October 1June 30, 2010 U4VT0004 10 0000 XXX: July 31, 2014 U4VT0008 11 of 36 DOC: December 23, 201039 Final 3. if the ratio of Losses Incurred to Net Premiums Earned is 63.5055.0% or less, the adjusted commission rate shall be 30.5040.0%. B. Within 30 days after 12 18 months after following the expiration date inception of this Contract, and annually every six months thereafter until all losses subject hereto under Policies covered hereunder have been finally settled, the Company shall calculate and report the adjusted commission on Net Premiums EarnedEarned for this Contract. Each calculation shall be based on cumulative transactions hereunder from the beginning of this Contract through the date of adjustment. If the adjusted commission on Net Premiums Premium Earned as of the date of adjustment is less than commissions previously allowed by the Reinsurer on Net Premiums EarnedReinsurer, the Company shall remit the difference to the Reinsurer with its report. If If, for any calculation, the adjusted commission on Net Premiums Earned is greater than commissions previously allowed by the Reinsurer on Net Premiums Earned, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company’s report.

COMMISSION ADJUSTMENT. This Article shall apply only to Section C Business. A. The provisional commission allowed the Company shall be adjusted in accordance with the provisions set forth herein. The adjusted commission rate shall be calculated as follows and be applied to Net Premiums Earned: 1. if the ratio of Losses Incurred to Net Premiums Earned is 67.5079.0% or greater, the adjusted commission rate shall be 26.5016.0%; 2. if the ratio of Losses Incurred to Net Premiums Earned is less than 67.50%, but not less than 63.5079.0%, the adjusted commission rate shall be 26.5016.0%, plus 100.0% of the difference in percentage points between 67.5079.0% and the actual ratio of Losses Incurred to Net Premiums Earned; Effective: October 1, 2010 U4VT0004 10 sliding 1:1 to a maximum ceding commission of 36 DOC: December 23, 2010 3. if the ratio of Losses Incurred to Net Premiums Earned is 63.50% or less, the adjusted commission rate shall be 30.5095.0%. B. Within 30 days after 12 18 months after following the expiration date inception of this Contract, and annually every six months thereafter until all losses subject hereto under Policies covered hereunder have been finally settled, the Company shall calculate and report the adjusted commission on Net Premiums Earned. Each calculation shall be based on cumulative transactions hereunder from the beginning of this Contract through the date of adjustment. If the adjusted commission on Net Premiums Premium Earned as of the date of adjustment is less than commissions previously allowed by the Reinsurer on Net Premiums EarnedReinsurer, the Company shall remit the difference to the Reinsurer with its report. If If, for any calculation, the adjusted commission on Net Premiums Earned is greater than commissions previously allowed by the Reinsurer on Net Premiums Earned, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company’s report.