Common use of Florida Hurricane Catastrophe Fund Clause in Contracts

Florida Hurricane Catastrophe Fund. A. The Company shall provisionally purchase from the Florida Hurricane Catastrophe Fund (FHCF) the following limit and retention: 90.0% of $18,700,000 excess of $3,700,000 The provisional limits and retentions detailed above may increase or decrease depending on the Company’s actual exposures on policies subject to the FHCF reimbursement coverage during the term of this Contract. The Company and the Reinsurer agree to accept and be bound by the final determination of the FHCF. B. Any loss reimbursement paid or payable to the Company under the coverage layers provided by the FHCF as a result of loss occurrences commencing during the term of this Contract shall inure to the benefit of this Contract. Further, any FHCF loss reimbursement shall be deemed to be paid to the Company in accordance with the reimbursement contract between the Company and the State Board of Administration of the State of Florida at the full payout level set forth therein and will be deemed not to be reduced by any reduction or exhaustion of the FHCF’s claims paying capacity. C. Prior to the determination of the Company’s FHCF retention and payout, if any, under the coverage layer provided by 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 the FHCF’s final determination of the payout under the coverage layer provided by 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. D. 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 such 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 such FHCF reimbursement to which the Company would be entitled for that loss occurrence alone, or (b) the remaining such 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.

Florida Hurricane Catastrophe Fund. A. The Company shall provisionally purchase from the Florida Hurricane Catastrophe Fund (FHCF) the following limit and retention: : 1. As respects Liberty American Insurance Company, 90.0% of $18,700,000 12,554,329 excess of $3,700,000 3,973,167; and 2. As respects Liberty American Select Insurance Company, 90.0% of $96,011,878 excess of $30,385,634. The provisional limits and retentions detailed above may increase or decrease depending on the Company’s 's actual exposures on policies written premium subject to the FHCF reimbursement coverage during the term of this Contract. The Company and the Reinsurer agree to accept and be bound by the final determination of the FHCF. B. Any loss reimbursement paid or payable to the Company under the coverage layers provided by the FHCF as a result of loss occurrences commencing during the term of this Contract shall inure to the benefit of this Contract. Further, any FHCF loss reimbursement shall be deemed to be paid to the Company in accordance with the reimbursement contract between the Company and the State Board of Administration of the State of Florida at the full payout level set forth therein and will be deemed not to be reduced by any reduction or exhaustion of the FHCF’s 's claims paying capacity. C. Prior to the determination of the Company’s 's FHCF retention and payout, if any, under the coverage layer provided by the reimbursement contract between the Company and the State Board of Administration of the State of Florida, the Reinsurer’s 's liability hereunder will be determined provisionally based on the projected payout, determined in accordance with the provisions of the reimbursement contract. Following the FHCF’s 's final determination of the payout under the coverage layer provided by 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. D. If an FHCF reimbursement amount is based on the Company’s 's losses in more than one loss occurrence commencing during the term of this Contract, the total such 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:: (XXXXXXXX LOGO) 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 of: (a) the amount of such FHCF reimbursement to which the Company would be entitled for that loss occurrence alone, or (b) the remaining such 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.

Florida Hurricane Catastrophe Fund. A. The Company shall provisionally purchase from the Florida Hurricane Catastrophe Fund (FHCF) the following limit and retention: : 1. As respects Liberty American Insurance Company, 90.0% of $18,700,000 5,521,302 excess of $3,700,000 1,086,017; and 2. As respects Liberty American Select Insurance Company, 90.0% of $75,752,188 excess of $14,900,133. The provisional limits and retentions detailed above may increase or decrease depending on the Company’s actual exposures on policies written premium subject to the FHCF reimbursement coverage during the term of this Contract. The Company and the Reinsurer agree to accept and be bound by the final determination of the FHCF. B. Any loss reimbursement paid or payable to the Company under the coverage layers provided by the FHCF as a result of loss occurrences commencing during the term of this Contract shall inure to the benefit of this Contract. Further, any FHCF loss reimbursement shall be deemed to be paid to the Company in accordance with the reimbursement contract between the Company and the State Board of Administration of the State of Florida at the full payout level set forth therein and will be deemed not to be reduced by any reduction or exhaustion of the FHCF’s claims paying capacity. C. Prior to the determination of the Company’s FHCF retention and payout, if any, under the coverage layer provided by 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 the FHCF’s final determination of the payout under the coverage layer provided by 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. D. 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 such 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 such FHCF reimbursement to which the Company would be entitled for that loss occurrence alone, or (b) the remaining such 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.

Florida Hurricane Catastrophe Fund. A. The Company shall provisionally purchase mandatory and optional coverage from the Florida Hurricane Catastrophe Fund (FHCF) with the following limit limits and retention: 90.0retentions: 1. 90% of $18,700,000 198,000,000 excess of $3,700,000 75,000,000 (mandatory layer); and 2. 90% of $93,000,000 excess of $273,000,000 (optional Temporary Increase in Coverage Limit). The provisional limits limit and retentions detailed retention above may increase or decrease depending on the Company’s actual exposures on policies subject to the FHCF reimbursement coverage during the term of this Contract. The Company and the Reinsurer agree to accept and be bound by the final determination of the FHCF. B. Any loss reimbursement paid or payable to the Company under the coverage layers provided by the FHCF as a result of loss occurrences commencing during the term of this Contract shall inure to the benefit of this Contract. Further, any FHCF loss reimbursement shall be deemed to be paid to the Company in accordance with the provisions of the reimbursement contract between the Company and the State Board of Administration of the State of Florida (SBA). B. Any loss reimbursement paid or payable to the Company for the mandatory and optional coverage layers provided by the FHCF, and resulting from Loss Occurrences commencing during the Term of this Agreement, shall inure to the benefit of this Agreement. Further, any FHCF loss reimbursement shall be deemed paid to the Company in accordance with the reimbursement contract between the Company and the SBA at the full payout level set forth therein and will be therein. It is further deemed that any loss reimbursement shall not to be reduced by any reduction or exhaustion of the FHCF’s claims actual claims-paying capacitycapacity of the FHCF and that the FHCF fund balance is deemed funded to the fullest extent allowable by Florida statute. C. Prior to the determination final calculation of the Company’s FHCF retention and payout, if any, under payout for the coverage layer mandatory and optional layers provided by the reimbursement contract between the Company and the State Board of Administration of the State of FloridaSBA, the Reinsurer’s liability hereunder will provisionally be determined provisionally calculated based on the projected payout, determined FHCF payout and in accordance with the provisions of the reimbursement contractparagraph B above. Following the FHCF’s final determination calculation of the payout under for the coverage layer layers provided by the reimbursement contract, the ultimate net loss Ultimate Net Loss under this Contract Agreement 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 Loss Occurrence is less than the amount previously paid by the Reinsurer under that the excess layer, the Company shall promptly remit the difference to the Reinsurer. If the loss to the Reinsurer in any one Loss Occurrence 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. For purposes of both the provisional and final calculation of Reinsurer liability referenced above, it is deemed that any FHCF loss reimbursement shall not be reduced by any reduction or exhaustion of the actual claims-paying capacity of the FHCF and that the FHCF fund balance is deemed funded to the fullest extent allowable by Florida statute. D. If an FHCF reimbursement amount is based on the Company’s losses in more than one loss occurrence Loss Occurrence commencing during the term Term of this ContractAgreement, and the FHCF does not designate the amount allocable to each Loss Occurrence, the total such 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 prorated in the proportion that the Company’s losses in each Loss Occurrence bear to the lesser Company’s total losses arising out of (a) the amount of such FHCF reimbursement all Loss Occurrences to which the Company would be entitled for that loss occurrence alone, or (b) the remaining such 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 occurrencesapplies.

Florida Hurricane Catastrophe Fund. A. The Company shall provisionally purchase mandatory and optional coverage from the Florida Hurricane Catastrophe Fund (FHCF) FHCF with the following limit limits and retention: 90.0retentions: 1. 90% of $18,700,000 182,800,000 excess of $3,700,000 71,300,000 (mandatory layer); 2. 90% of $64,500,000 excess of $254,100,000 (optional Temporary Increase in Coverage Limit). The provisional limits and retentions detailed above may increase or decrease depending on in accordance with the Company’s actual exposures on policies subject to provisions of the FHCF reimbursement coverage during contract between the term of this Contract. The Company and the Reinsurer agree to accept and be bound by the final determination State Board of Administration of the FHCFState of Florida (SBA). B. Any loss reimbursement paid or payable to the Company under for the mandatory coverage layers layer or the optional layer coverage provided by the FHCF, (“FHCF as a result of loss reimbursement”) and resulting from loss occurrences commencing during the term of this Contract Contract, shall inure to the benefit of this Contract. Further, any FHCF loss reimbursement shall be deemed to be paid to the Company in accordance with the reimbursement contract between the Company and the State Board of Administration of the State of Florida SBA at the full payout level set forth therein as respects the first and will second excess layers hereof, but shall be deemed paid at 100% of the mandatory coverage layer and 100% of the optional coverage layer as respects the third excess layer hereof. It is further deemed that any loss reimbursement shall not to be reduced by any reduction or exhaustion of the FHCF’s claims actual claims-paying capacitycapacity of the FHCF and that the FHCF fund balance is deemed funded to the fullest extent allowable by Florida statute. C. The Company may also purchase optional Limited Apportionment Companies coverage from the FHCF. Any loss reimbursement paid or payable to the Company for such coverage as a result of loss occurrences commencing during the term of this Contract shall inure solely to the benefit of the Company and shall be entirely disregarded in applying all of the provisions of this Contract. Effective: June 1, 2011 D. Prior to the determination final calculation of the Company’s FHCF retention and payout, if any, under payout for the mandatory layer and the optional layer coverage layer provided by the reimbursement contract between the Company and the State Board of Administration of the State of FloridaSBA, the Reinsurer’s liability hereunder will provisionally be determined provisionally calculated based on the projected payout, determined FHCF payout and in accordance with the provisions of the reimbursement contractparagraph B above. Following the FHCF’s final determination calculation of the payout under for the coverage layer layers provided by 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 hereunder in any one loss occurrence is less than the amount previously paid by the Reinsurer under that excess layerhereunder, 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 hereunder is greater than the amount previously paid by the Reinsurer, the Reinsurer shall promptly remit the difference to the Company. For purposes of both the provisional and final calculation of Reinsurer liability referenced above, it is deemed that any FHCF loss reimbursement shall not be reduced by any reduction or exhaustion of the actual claims-paying capacity of the FHCF and that the FHCF fund balance is deemed funded to the fullest extent allowable by Florida statute. D. E. 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, and the total such FHCF reimbursement received by does not designate the Company shall be allocated amount allocable to individual each loss occurrences in chronological order of occurrence, 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 shall be allocated by prorated in the Company to any individual proportion that the Company’s losses in each loss occurrence shall be equal bear to the lesser Company’s total losses arising out of (a) the amount of such FHCF reimbursement all loss occurrences to which the Company would be entitled for that loss occurrence alone, or (b) the remaining such 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 occurrencesapplies.