Common use of LIABILITY OF THE FHCF Clause in Contracts

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company with respect to each Covered Event commencing during the Contract Year in the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage Level, plus 10% of the reimbursed Losses as a Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s Limit. (2) Section 215.555(4)(c)1., Florida Statutes, provides that the obligation of the FHCF with respect to all Contracts covering a particular Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in Section 215.555(4)(c)1., Florida Statutes, the SBA shall, upon the occurrence of a Covered Event, evaluate the potential Losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (4) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once the Company’s Limit has been exhausted, the Company will not be entitled to further reimbursements.

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company with respect to each Covered Event commencing during the Contract Year in the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage Level, plus 105% of the reimbursed Losses as a Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s Limit. (2) Section 215.555(4)(c)1., Florida Statutes, Statutes provides that the obligation of the FHCF with respect to all Contracts covering a particular Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in Section 215.555(4)(c)1., Florida Statutes, the SBA shall, upon the occurrence of a Covered Event, evaluate the potential Losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (4) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once the Company’s Limit has been exhausted, the Company will not be entitled to further reimbursements.

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company with respect to each Covered Event commencing during the Contract Year in the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage Level, plus 10% 10 percent of the reimbursed Losses as a Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s Limit. (2) Section 215.555(4)(c)1., Florida Statutes, provides that the obligation of the FHCF with respect to all Contracts covering a particular Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in Section 215.555(4)(c)1., Florida Statutes, the SBA shall, upon the occurrence of a Covered Event, evaluate the potential Losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (4) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once the Company’s Limit has been exhausted, the Company will not be entitled to further reimbursements.

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event Loss Occurrence commencing during the Contract Year in for the "Reimbursement Percentage" elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s 's Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a losses for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1The Reimbursement Percentage will be 45% or 75% or 90%, at the Company's option as elected under Article XVIII., Florida Statutes, provides that the obligation (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding loss reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X herein. (4) Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses losses to the FHCF and the FHCF’s 's capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s 's mandatory coverage. The SBA shall make adjustments to the Projected Payout Multiple in order to reimburse the optional Temporary Increase in Coverage Limit (TICL) Options coverage based on the SBA's ongoing evaluation of potential losses and capacity. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s 's projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (45) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once . (6) After the Company’s Limit has been exhaustedend of the calendar year, the Company will SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Weekly a statement of the FHCF's estimated Borrowing Capacity, Estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. (7) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not be entitled exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to further reimbursementsraise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1., Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company with respect to each Covered Event commencing during the Contract Year in the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage Level, plus 10510% of the reimbursed Losses as a Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s Limit. (2) Section 215.555(4)(c)1., Florida Statutes, Statutes provides that the obligation of the FHCF with respect to all Contracts covering a particular Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in Section 215.555(4)(c)1., Florida Statutes, the SBA shall, upon the occurrence of a Covered Event, evaluate the potential Losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (4) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once the Company’s Limit has been exhausted, the Company will not be entitled to further reimbursements.

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event commencing during the Contract Year in for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1The Reimbursement Percentage will be 45% or 75% or 90%, at the Company’s option as elected under Article XX., Florida Statutes, provides that the obligation (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X. (4) Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (45) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once the Company’s Limit limit of coverage has been exhausted, the Company will not be entitled to further reimbursements. (6) After the end of the calendar year, the SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Register a statement of the FHCF’s estimated Borrowing Capacity, Estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. (7) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to raise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1. and (6), Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event Loss Occurrence commencing during the Contract Year in for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage Level, plus 105% of the reimbursed Losses as a losses for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1The Reimbursement Percentage will be 45% or 75% or 90%, at the Company’s option as elected under ARTICLE XVIII herein., Florida Statutes, provides that the obligation (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular Contract Year this contract year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding loss reimbursement calculations, the SBA shall, upon the occurrence see section (3)(c) of a Covered Event, evaluate the potential Losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying CapacityARTICLE X herein. (4) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once . (5) After the Company’s Limit has been exhaustedend of each calendar year, the Company SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Weekly a statement of the FHCF’s estimated Borrowing Capacity and the projected Balance of the Fund as of December 31. (6) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to raise through the issuance of revenue bonds or other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1., Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.). If Reimbursement Premiums are used for debt service in the event of a temporary shortfall in the collection of emergency assessments, then the amount of the Premiums so used will not be entitled reimbursed to further reimbursementsthe SBA when sufficient emergency assessments are received.

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company with respect to each Covered Event commencing during the Contract Year in the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage Level, plus 10% of the reimbursed Losses as a Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s Limit. (2) Section 215.555(4)(c)1., Florida Statutes, Statutes provides that the obligation of the FHCF with respect to all Contracts covering a particular Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in Section 215.555(4)(c)1., Florida Statutes, the SBA shall, upon the occurrence of a Covered Event, evaluate the potential Losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (4) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once the Company’s Limit has been exhausted, the Company will not be entitled to further reimbursements.

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event commencing during the Contract Year in for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1The Reimbursement Percentage will be 45% or 75% or 90%, at the Company’s option as elected under Article XIX., Florida Statutes, provides that the obligation (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X. (4) Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (45) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once the Company’s Limit limit of coverage has been exhausted, the Company will not be entitled to further reimbursements. (6) After the end of the calendar year, the SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Register a statement of the FHCF’s estimated Borrowing Capacity, Estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. (7) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to raise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1. and (6), Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event Loss Occurrence commencing during the Contract Year in for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a losses for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1.The Reimbursement Percentage will be 45% or 75% or 90%, Florida Statutes, provides that at the obligation Company’s option as elected under Article XVIII. 2 FHCF-2010K Rule 19-8.010 F.A.C. (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding loss reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X herein. (4) Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s coveragemandatory coverage and the Additional Coverage Option (up to $10 million) pursuant to Section 215.555(4)(b)4., Florida Statutes, as provided under Addendum No. 1. to this Contract. The SBA shall make adjustments to the Projected Payout Multiple in order to reimburse the optional Temporary Coverage Limit (TICL) Options coverage based on the SBA’s ongoing evaluation of potential losses and capacity. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (45) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once . (6) After the Company’s Limit has been exhaustedend of the calendar year, the Company will SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Weekly a statement of the FHCF’s estimated Borrowing Capacity, estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. (7) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not be entitled exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to further reimbursementsraise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1., Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company with respect to each Covered Event commencing during the Contract Year in the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage Level, plus 10% 10 percent of the reimbursed Losses as a Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s Limit. (2) . Section 215.555(4)(c)1., Florida Statutes, provides that the obligation of the FHCF with respect to all Contracts covering a particular Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) . In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in Section 215.555(4)(c)1., Florida Statutes, the SBA shall, upon the occurrence of a Covered Event, evaluate the potential Losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (4) . Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once the Company’s Limit has been exhausted, the Company will not be entitled to further reimbursements.

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event commencing during the Contract Year in for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1The Reimbursement Percentage will be 45% or 75% or 90%, at the Company’s option as elected under Article XIX XX., Florida Statutes, provides that the obligation (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X. (4) Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (45) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once the Company’s Limit limit of coverage has been exhausted, the Company will not be entitled to further reimbursements. (6) After the end of the calendar year, the SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Register a statement of the FHCF’s estimated Borrowing Capacity, Estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. (7) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to raise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1. and (6), Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company with respect to each Covered Event commencing during the Contract Year in the amount of Ultimate Net Loss paid by the Company in excess of the Company’s 's Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage Level, plus 10% of the reimbursed Losses as a Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s 's Limit. (2) Section 215.555(4)(c)1., Florida Statutes, Statutes provides that the obligation of the FHCF with respect to all Contracts covering a particular Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in Section 215.555(4)(c)1., Florida Statutes, the SBA shall, upon the occurrence of a Covered Event, evaluate the potential Losses to the FHCF and the FHCF’s 's capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s 's coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s 's projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (4) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once the Company’s 's Limit has been exhausted, the Company will not be entitled to further reimbursements.

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company with respect to each Covered Event commencing during the Contract Year in the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage Level, plus 10% 10 percent% of the reimbursed Losses as a Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s Limit. (2) Section 215.555(4)(c)1., Florida Statutes, provides that the obligation of the FHCF with respect to all Contracts covering a particular Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in Section 215.555(4)(c)1., Florida Statutes, the SBA shall, upon the occurrence of a Covered Event, evaluate the potential Losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (4) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once the Company’s Limit has been exhausted, the Company will not be entitled to further reimbursements.

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event Loss Occurrence commencing during the Contract Year in for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a losses for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1The Reimbursement Percentage will be 45% or 75% or 90%, at the Company’s option as elected under Article XVIII., Florida Statutes, provides that the obligation (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding loss reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X herein. (4) Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s coveragemandatory coverage and the Additional Coverage Option (up to $10 million) pursuant to Section 215.555(4)(b)4., Florida Statutes, as provided under Addendum No. 1. to this Contract. The SBA shall make adjustments to the Projected Payout Multiple in order to reimburse the optional Temporary Increase in Coverage Limit (TICL) Options coverage based on the SBA’s ongoing evaluation of potential losses and capacity. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (45) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once . (6) After the Company’s Limit has been exhaustedend of the calendar year, the Company will SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Weekly a statement of the FHCF’s estimated Borrowing Capacity, Estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. (7) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not be entitled exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to further reimbursementsraise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1., Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event Loss Occurrence commencing during the Contract Year in for the Reimbursement Percentage elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s 's Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a losses for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1The Reimbursement Percentage will be 45% or 75% or 90%, at the Company's option as elected under Article XVIII., Florida Statutes, provides that the obligation (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding loss reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X herein. (4) Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses losses to the FHCF and the FHCF’s 's capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s coverage's mandatory coverage and the Additional Coverage Option (up to $10 million) pursuant to Section 215.555(4)(b)4., Florida Statutes, as provided under Addendum No. 1. to this Contract. The SBA shall make adjustments to the Projected Payout Multiple in order to reimburse the optional Temporary Increase in Coverage Limit (TICL) Options coverage based on the SBA's ongoing evaluation of potential losses and capacity. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s 's projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (45) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once . (6) After the Company’s Limit has been exhaustedend of the calendar year, the Company will SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Weekly a statement of the FHCF's estimated Borrowing Capacity, Estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. (7) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not be entitled exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to further reimbursementsraise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1., Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event Loss Occurrence commencing during the Contract Year in for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a losses for Loss Adjustment Expense AllowanceReimbursement. The Reimbursement Percentage will be 45% or 75% or 90%, the total of which shall not exceed at the Company’s Limit. (2) Section 215.555(4)(c)1., Florida Statutes, provides that the obligation option as elected under Article XVIII. The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding loss reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X herein. Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s mandatory coverage. The SBA shall make adjustments to the Projected Payout Multiple in order to reimburse the optional Temporary Increase in Coverage Limit (TICL) Options coverage based on the SBA’s ongoing evaluation of potential losses and capacity. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (4) . Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once After the Company’s Limit has been exhaustedend of the calendar year, the Company will SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Weekly a statement of the FHCF’s estimated Borrowing Capacity, Estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not be entitled exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to further reimbursementsraise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1., Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event Loss Occurrence commencing during the Contract Year in for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a losses for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1The Reimbursement Percentage will be 45% or 75% or 90%, at the Company’s option as elected under Article XIX., Florida Statutes, provides that the obligation (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding loss reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X. (4) Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s mandatory coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (45) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once the Company’s Limit limit of coverage has been exhausted, the Company will not be entitled to further reimbursements. (6) After the end of the calendar year, the SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Register a statement of the FHCF’s estimated Borrowing Capacity, Estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. (7) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to raise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1. and (6), Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event Loss Occurrence commencing during the Contract Year in for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a losses for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1.The Reimbursement Percentage will be 45% or 75% or 90%, Florida Statutes, provides that at the obligation Company’s option as elected under Article XIX. 2 FHCF-2016K Rule 19-8.010 F.A.C. (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding loss reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X. (4) Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s mandatory coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (45) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once the Company’s Limit limit of coverage has been exhausted, the Company will not be entitled to further reimbursements. (6) After the end of the calendar year, the SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Register a statement of the FHCF’s estimated Borrowing Capacity, Estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. (7) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to raise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1. and (6), Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event Loss Occurrence commencing during the Contract Year in for the "Reimbursement Percentage" elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s 's Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a losses for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1The Reimbursement Percentage will be 45% or 75% or 90%, at the Company's option as elected under Article XVIII., Florida Statutes, provides that the obligation (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1215.555(4)(c)l., Florida Statutes. For specifics regarding loss reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X. (4) Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s 's mandatory coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s 's projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (45) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once the Company’s Limit 's limit of coverage has been exhausted, the Company will not be entitled to further reimbursements. (6) After the end of the calendar year, the SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Weekly a statement of the FHCF’s estimated Borrowing Capacity, Estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. (7) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to raise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)l., Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company with respect to each Covered Event commencing during the Contract Year in the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage Level, plus 10% of the reimbursed Losses as a Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s Limit. (2) . Section 215.555(4)(c)1., Florida Statutes, Statutes provides that the obligation of the FHCF with respect to all Contracts covering a particular Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) . In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in Section 215.555(4)(c)1., Florida Statutes, the SBA shall, upon the occurrence of a Covered Event, evaluate the potential Losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (4) . Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once the Company’s Limit has been exhausted, the Company will not be entitled to further reimbursements.

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event Loss Occurrence commencing during the Contract Year in for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a losses for Loss Adjustment Expense AllowanceReimbursement. The Reimbursement Percentage will be 45% or 75% or 90%, the total of which shall not exceed at the Company’s Limit. (2) Section 215.555(4)(c)1., Florida Statutes, provides that the obligation option as elected under Article XIX. The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding loss reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X. Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s mandatory coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (4) . Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once the Company’s Limit limit of coverage has been exhausted, the Company will not be entitled to further reimbursements. After the end of the calendar year, the SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Register a statement of the FHCF’s estimated Borrowing Capacity, Estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to raise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1. and (6), Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event Loss Occurrence commencing during the Contract Year in for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a losses for Loss Adjustment Expense AllowanceReimbursement. The Reimbursement Percentage will be 45% or 75% or 90%, the total of which shall not exceed at the Company’s Limit. (2) Section 215.555(4)(c)1., Florida Statutes, provides that the obligation option as elected under Article XVIII. The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding loss reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X herein. Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s mandatory coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (4) . Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once After the Company’s Limit has been exhaustedend of the calendar year, the Company will SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Weekly a statement of the FHCF’s estimated Borrowing Capacity, Estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not be entitled exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to further reimbursementsraise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1., Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event commencing during the Contract Year in for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1The Reimbursement Percentage will be 45% or 75% or 90%, at the Company’s option as elected under Article XX., Florida Statutes, provides that the obligation (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding reimbursement calculations, the SBA shall, upon sec section (3)(c) of Article X. (4) Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (45) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once the Company’s Limit limit of coverage has been exhausted, the Company will not be entitled to further reimbursements. (6) After the end of the calendar year, the SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Register a statement of the FHCF’s estimated Borrowing Capacity, Estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. (7) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to raise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1. and (6), Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event Loss Occurrence commencing during the Contract Year in for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a losses for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1.The Reimbursement Percentage will be 45% or 75% or 90%, Florida Statutes, provides that at the obligation Company’s option as elected under Article XVIII. 2 FHCF-2014K Rule 19-8.010 F.A.C. (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding loss reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X herein. (4) Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s mandatory coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (45) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once . (6) After the Company’s Limit has been exhaustedend of the calendar year, the Company will SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Weekly a statement of the FHCF’s estimated Borrowing Capacity, Estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. (7) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not be entitled exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to further reimbursementsraise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1., Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (FA.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Loss OccurrenceCovered Event commencing during the Contract Year in for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed losses Losses as a for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1The Reimbursement Percentage will be 45% or 75% or 90%, at the Company’s option as elected under Article XIX., Florida Statutes, provides that the obligation (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding loss reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X. (4) Upon the occurrence of a Covered Event, the SBA shall evaluate the potential losses Losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses lossesLosses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s mandatory coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (45) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once the Company’s Limit limit of coverage has been exhausted, the Company will not be entitled to further reimbursements. (6) After the end of the calendar year, the SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Register a statement of the FHCF’s estimated Borrowing Capacity, Estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. (7) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to raise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1. and (6), Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event Loss Occurrence commencing during the Contract Year in for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a losses for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1.The Reimbursement Percentage will be 45% or 75% or 90%, Florida Statutes, provides that at the obligation Company’s option as elected under Article XVIII. 2 FHCF-2008K (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding loss reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X herein. (4) Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s mandatory coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the The SBA shall reduce make adjustments to the projected payout factors or multiples for determining each participating insurerProjected Payout Multiple in order to reimburse the optional coverage based on the SBA’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacityongoing evaluation of potential losses and capacity. (45) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once . (6) After the Company’s Limit has been exhaustedend of the calendar year, the Company will SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Weekly a statement of the FHCF’s estimated Borrowing Capacity and the projected Balance of the Fund as of December 31. (7) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not be entitled exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to further reimbursementsraise through the issuance of revenue bonds or other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1., Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event Loss Occurrence commencing during the Contract Year in for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a losses for Loss Adjustment Expense AllowanceReimbursement. The Reimbursement Percentage will be 45% or 75% or 90%, the total of which shall not exceed at the Company’s Limit. (2) Section 215.555(4)(c)1., Florida Statutes, provides that the obligation option as elected under Article XVIII. The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding loss reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X. Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s mandatory coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (4) . Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once the Company’s Limit limit of coverage has been exhausted, the Company will not be entitled to further reimbursements. After the end of the calendar year, the SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Weekly a statement of the FHCF’s estimated Borrowing Capacity, Estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to raise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1., Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company with respect to each Covered Event commencing during the Contract Year in the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage Level, plus 10% 10 percent of the reimbursed Losses as a Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s Limit. (2) Section 215.555(4)(c)1., Florida Statutes, provides that the obligation of the FHCF with respect to all Contracts covering a particular Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on of the obligation of the FHCF provided in Section 215.555(4)(c)1., Florida Statutes, the SBA shall, upon the occurrence of a Covered Event, evaluate the potential Losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (4) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once the Company’s Limit has been exhausted, the Company will not be entitled to further reimbursements.

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event Loss Occurrence commencing during the Contract Year in for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a losses for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1The Reimbursement Percentage will be 45% or 75% or 90%, at the Company’s option as elected under Article XVIII., Florida Statutes, provides that the obligation (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding loss reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X herein. (4) Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s coveragemandatory coverage and the Additional Coverage Option (up to $10 million) pursuant to Section 215.555(4)(b)4., Florida Statutes, as provided under Addendum No. 1. to this Contract. The SBA shall make adjustments to the Projected Payout Multiple in order to reimburse the optional Temporary Coverage Limit (TICL) Options coverage based on the SBA’s ongoing evaluation of potential losses and capacity. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the published projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (45) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once . (6) After the Company’s Limit has been exhaustedend of the calendar year, the Company will SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Weekly a statement of the FHCF’s estimated Borrowing Capacity, estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. (7) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not be entitled exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to further reimbursementsraise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1., Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event Loss Occurrence commencing during the Contract Year in for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage Level, plus 105% of the reimbursed Losses as a losses for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1The Reimbursement Percentage will be 45% or 75% or 90%, at the Company’s option as elected under Schedule A attached to and forming part of this Contract, unless it must be adjusted for some or all Companies in the FHCF as provided in (3) below ARTICLE XVIII herein., Florida Statutes, provides that the obligation (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular Contract Year this contract year shall not exceed the limit set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding loss reimbursement calculations, see section (3)(c) of ARTICLE X xxxxxx.Xx determining reimbursements under this Article, the SBA shall: (a) First, reimburse Companies qualified as limited apportionment companies under Section 627.351(2)(b)3., Florida Statutes, for the amount (if any) of reimbursement due under the individual Company’s Contract, but not to exceed the lesser of $10 million or an amount equal to 10 times the individual Company’s Reimbursement Premium for the Contract Year. This provision does not apply if the projected Balance of the Fund as of December 31 of the Contract Year, exclusive of any bonding capacity of the FHCF, exceeds $2 billion. Further, if the Company is a member of an NAIC group, the Company may not receive reimbursement under this provision if any other member of the NAIC group has received reimbursement under this provision. (b) Next, reimburse each of the Companies for the amount (if any) of reimbursement due under the individual Company’s Contract, but not to exceed an amount equal to the Projected Payout Multiple times the individual Company’s Reimbursement Premium for the Contract Year, provided, however, that entities created under Section 627.351, Florida Statutes, shall be further reimbursed in accordance with subsection (c) below. If the Company qualifies as a limited apportionment company under Section 627.351(2)(b)3., Florida Statutes, any amount payable under this provision shall be reduced by the amount (if any) payable under (a) above. (c) Thereafter, reimburse each entity created by Section 627.351, Florida Statutes, for a pro rata share of any remaining Actual Claims-Paying Capacity of the FHCF based on the proportion determined by dividing such entity’s remaining reimbursable losses under Covered Policies from Covered Events for the Contract Year by the total remaining reimbursable losses under Covered Policies from Covered Events for the Contract Year, for which any remaining FHCF balance or bond proceeds are sufficient, up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided $11 billion for any one Contract Year, in accordance with Section 215.555(4)(c)1., Florida Statutes, the SBA shall, upon the occurrence of a Covered Event, evaluate the potential Losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (4) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once ; however, the Company shall not allow recoveries from such other sources, except reinsurance recoveries from affiliated Companies and/or reinsurers, taken together with reimbursements under this Contract, to exceed 100% of the Company’s Limit has been exhaustedlosses under Covered Policies from Covered Events. If such recoveries and reimbursements exceed 100% of the Company’s losses under Covered Policies from Covered Events, and if there is no agreement between the Company and its reinsurer(s) to the contrary, any amount in excess of 100% of the Company’s losses under Covered Policies from Covered Events shall be returned to the SBA. (5) The SBA shall notify the Company of the FHCF’s estimated Borrowing Capacity, the Company projected Balance of the Fund as of December 31, and the Company’s estimated share of total Reimbursement Premium to be paid to the FHCF for the Contract Year. In May and October of each year, the SBA shall publish in the Florida Administrative Weekly a statement of the FHCF’s estimated Borrowing Capacity and the projected Balance of the Fund as of December 31. (6) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to raise through the issuance of revenue bonds or other means available to the SBA under Section 215.555, Florida Statutes, up to a limit of $11 billion for any one Contract Year the limit in accordance with Section 215.555(4)(c)1., Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.). If Reimbursement Premiums are used for debt service in the event of a temporary shortfall in the collection of emergency assessments, then the amount of the Premiums so used will not be entitled reimbursed to further reimbursementsthe SBA when sufficient emergency assessments are received.

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event Loss Occurrence commencing during the Contract Year in for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a losses for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1The Reimbursement Percentage will be 45% or 75% or 90%, at the Company’s option as elected under Article XVIII., Florida Statutes, provides that the obligation (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1215.555(4)(c)l., Florida Statutes. For specifics regarding loss reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X herein. (4) Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s mandatory coverage. The SBA shall make adjustments to the Projected Payout Multiple in order to reimburse the optional Temporary Increase in Coverage Limit (TICL) Options coverage based on the SBA’s ongoing evaluation of potential losses and capacity. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (45) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once . (6) After the Company’s Limit has been exhaustedend of the calendar year, the Company will SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Weekly a statement of the FHCF’s estimated Borrowing Capacity, Estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. (7) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not be entitled exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to further reimbursementsraise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)l., Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event Loss Occurrence commencing during the Contract Year in for the "Reimbursement Percentage" elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s 's Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a losses for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1The Reimbursement Percentage will be 45% or 75% or 90%, at the Company's option as elected under Article XVIII., Florida Statutes, provides that the obligation (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding loss reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X herein. (4) Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses losses to the FHCF and the FHCF’s 's capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s 's mandatory coverage. The SBA shall make adjustments to the Projected Payout Multiple in order to 2 FHCF-2014K reimburse the optional Temporary Increase in Coverage Limit (TICL) Options coverage based on the SBA's ongoing evaluation of potential losses and capacity. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s 's projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (45) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once . (6) After the Company’s Limit has been exhaustedend of the calendar year, the Company will SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Weekly a statement of the FHCF's estimated Borrowing Capacity, Estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. (7) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not be entitled exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to further reimbursementsraise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1., Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event Loss Occurrence commencing during the Contract Year in for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage Level, plus 105% of the reimbursed Losses as a losses for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1The Reimbursement Percentage will be 45% or 75% or 90%, at the Company’s option as elected under ARTICLE XVIII herein., Florida Statutes, provides that the obligation (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular Contract Year this contract year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding loss reimbursement calculations, the SBA shall, upon the occurrence see section (3)(c) of a Covered Event, evaluate the potential Losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying CapacityARTICLE X herein. (4) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once .; however, the Company shall not allow recoveries from such other sources, except reinsurance recoveries from affiliated Companies and/or reinsurers, taken together with reimbursements under this Contract, to exceed 100% of the Company’s Limit has been exhaustedlosses under Covered Policies from Covered Events. If such recoveries and reimbursements exceed 100% of the Company’s losses under Covered Policies from Covered Events, and if there is no agreement between the Company and its reinsurer(s) to the contrary, any amount in excess of 100% of the Company’s losses under Covered Policies from Covered Events shall be returned to the SBA. (5) After the end of each calendar year, the SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31.The SBA shall notify the Company of the FHCF’s estimated Borrowing Capacity, the projected Balance of the Fund as of December 31, and the Company’s estimated share of total Reimbursement Premium to be paid to the FHCF for the Contract Year. In May and October of each year, the SBA shall publish in the Florida Administrative Weekly a statement of the FHCF’s estimated Borrowing Capacity and the projected Balance of the Fund as of December 31. (6) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to raise through the issuance of revenue bonds or other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1., Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.). If Reimbursement Premiums are used for debt service in the event of a temporary shortfall in the collection of emergency assessments, then the amount of the Premiums so used will not be entitled reimbursed to further reimbursementsthe SBA when sufficient emergency assessments are received.

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event Loss Occurrence commencing during the Contract Year in for the "Reimbursement Percentage" elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s 's Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a losses for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1The Reimbursement Percentage will be 45% or 75% or 90%, at the Company's option as elected under Article XVIII., Florida Statutes, provides that the obligation (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding loss reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X herein. (4) Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses losses to the FHCF and the FHCF’s 's capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s coverage's mandatory coverage and the Additional Coverage Option (up to $10 million) pursuant to Section 215.555(4)(b)4., Florida Statutes, as provided under Addendum No. 1. to this Contract. The SBA shall make adjustments to the Projected Payout Multiple in order to reimburse the optional Temporary Increase in Coverage Limit (TICL) Options coverage based on the SBA's ongoing evaluation of potential losses and capacity. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s 's projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (45) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once . (6) After the Company’s Limit has been exhaustedend of the calendar year, the Company will SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Weekly a statement of the FHCF's estimated Borrowing Capacity, Estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. (7) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not be entitled exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to further reimbursementsraise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1., Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event Loss Occurrence commencing during the Contract Year in for the "Reimbursement Percentage" elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s 's Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a losses for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1The Reimbursement Percentage will be 45% or 75% or 90%, at the Company's option as elected under Article XVIII., Florida Statutes, provides that the obligation (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding loss reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X herein. (4) Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses losses to the FHCF and the FHCF’s 's capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s 's mandatory coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s 's projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (45) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once . (6) After the Company’s Limit has been exhaustedend of the calendar year, the Company will SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Weekly a statement of the FHCF's estimated Borrowing Capacity, Estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. (7) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not be entitled exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to further reimbursementsraise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1., Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company with respect to each Covered Event commencing during the Contract Year in the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage Level, plus 10% of the reimbursed Losses as a Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s Limit. (2) . Section 215.555(4)(c)1., Florida Statutes, provides that the obligation of the FHCF with respect to all Contracts covering a particular Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) . In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in Section 215.555(4)(c)1., Florida Statutes, the SBA shall, upon the occurrence of a Covered Event, evaluate the potential Losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (4) . Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once the Company’s Limit has been exhausted, the Company will not be entitled to further reimbursements.

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event commencing during the Contract Year in for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a for Loss Adjustment Expense AllowanceReimbursement. The Reimbursement Percentage will be 45% or 75% or 90%, the total of which shall not exceed at the Company’s Limit. (2) Section 215.555(4)(c)1., Florida Statutes, provides that the obligation option as elected under Article XX. The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X. Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (4) . Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once the Company’s Limit limit of coverage has been exhausted, the Company will not be entitled to further reimbursements. After the end of the calendar year, the SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Register a statement of the FHCF’s estimated Borrowing Capacity, Estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to raise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1. and (6), Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event Loss Occurrence commencing during the Contract Year in for the "Reimbursement Percentage" elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s 's Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a losses for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1The Reimbursement Percentage will be 45% or 75% or 90%, at the Company's option as elected under Article XVIII., Florida Statutes, provides that the obligation (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding loss reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X herein. (4) Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses losses to the FHCF and the FHCF’s 's capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s 's mandatory coverage. The SBA shall make adjustments to the Projected Payout Multiple in order to 2 FHCF-2013K reimburse the optional Temporary Increase in Coverage Limit (TICL) Options coverage based on the SBA's ongoing evaluation of potential losses and capacity. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s 's projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (45) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once . (6) After the Company’s Limit has been exhaustedend of the calendar year, the Company will SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Weekly a statement of the FHCF's estimated Borrowing Capacity, Estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. (7) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not be entitled exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to further reimbursementsraise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1., Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event Loss Occurrence commencing during the Contract Year in for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage Level, plus 105% of the reimbursed Losses as a losses for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) The Reimbursement Percentage will be 45% or 75% or 90%, at the Company’s option as elected under Schedule A attached to and forming part of this Contract, unless it must be adjusted for some or all Companies in the FHCF as provided in (3) below. (3) In determining reimbursements under this Article, the SBA shall: (a) First, reimburse Companies qualified as limited apportionment companies under Section 215.555(4)(c)1627.351(2)(b)3., Florida Statutes, provides that for the obligation amount (if any) of reimbursement due under the individual Company’s Contract, but not to exceed the lesser of $10 million or an amount equal to 10 times the individual Company’s Reimbursement Premium for the Contract Year. This provision does not apply if the projected Balance of the FHCF Fund as of December 31 of the Contract Year, exclusive of any bonding capacity of the FHCF, exceeds $2 billion. Further, if the Company is a member of an NAIC group, the Company may not receive reimbursement under this provision if any other member of the NAIC group has received reimbursement under this provision. (b) Next, reimburse each of the Companies for the amount (if any) of reimbursement due under the individual Company’s Contract, but not to exceed an amount equal to the Projected Payout Multiple times the individual Company’s Reimbursement Premium for the Contract Year, provided, however, that entities created under Section 627.351, Florida Statutes, shall be further reimbursed in accordance with respect to all Contracts covering subsection (c) below. If the Company qualifies as a particular Contract Year limited apportionment company under Section 627.351(2)(b)3., Florida Statutes, any amount payable under this provision shall not exceed be reduced by the amount (if any) payable under (a) above. (c) Thereafter, reimburse each entity created by Section 627.351, Florida Statutes, for a pro rata share of any remaining Actual Claims-Paying Capacity of the FHCF based on the proportion determined by dividing such entity’s remaining reimbursable losses under Covered Policies from Covered Events for the Contract Year by the total remaining reimbursable losses under Covered Policies from Covered Events for the Contract Year, for which any remaining FHCF balance or bond proceeds are sufficient, up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided $11 billion for any one Contract Year, in accordance with Section 215.555(4)(c)1., Florida Statutes, the SBA shall, upon the occurrence of a Covered Event, evaluate the potential Losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (4) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once ; however, the Company shall not allow recoveries from such other sources, except reinsurance recoveries from affiliated Companies and/or reinsurers, taken together with reimbursements under this Contract, to exceed 100% of the Company’s Limit has been exhaustedlosses under Covered Policies from Covered Events. If such recoveries and reimbursements exceed 100% of the Company’s losses under Covered Policies from Covered Events, and if there is no agreement between the Company and its reinsurer(s) to the contrary, any amount in excess of 100% of the Company’s losses under Covered Policies from Covered Events shall be returned to the SBA. (5) The SBA shall notify the Company of the FHCF’s estimated Borrowing Capacity, the Company projected Balance of the Fund as of December 31, and the Company’s estimated share of total Reimbursement Premium to be paid to the FHCF for the Contract Year. In May and October of each year, the SBA shall publish in the Florida Administrative Weekly a statement of the FHCF’s estimated Borrowing Capacity and the Balance of the Fund as of December 31. (6) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to raise through the issuance of revenue bonds or other means available to the SBA under Section 215.555, Florida Statutes, up to a limit of $11 billion for any one Contract Year in accordance with Section 215.555(4)(c)1., Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.). If Reimbursement Premiums are used for debt service in the event of a temporary shortfall in the collection of emergency assessments, then the amount of the Premiums so used will not be entitled reimbursed to further reimbursementsthe SBA when sufficient emergency assessments are received.

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event Loss Occurrence commencing during the Contract Year in for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a losses for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1.The Reimbursement Percentage will be 45% or 75% or 90%, Florida Statutes, provides that at the obligation Company’s option as elected under Article XVIII. 2 FHCF-2009K (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)12l5.555(4)(c)1., Florida Statutes. For specifics regarding loss reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X herein. (4) Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s mandatory coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the The SBA shall reduce make adjustments to the projected payout factors or multiples for determining each participating insurerProjected Payout Multiple in order to reimburse the optional coverage based on the SBA’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacityongoing evaluation of potential losses and capacity. (45) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once . (6) After the Company’s Limit has been exhaustedend of the calendar year, the Company will SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Weekly a statement of the FHCF’s estimated Borrowing Capacity and the projected Balance of the Fund as of December 31. (7) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not be entitled exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to further reimbursementsraise through the issuance of revenue bonds or other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1., Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event Loss Occurrence commencing during the Contract Year in for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a losses for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1The Reimbursement Percentage will be 45% or 75% or 90%, at the Company’s option as elected under Article XVIII., Florida Statutes, provides that the obligation (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding loss reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X herein. (4) Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s mandatory coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (45) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. (6) After the end of the calendar year, the SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. Once In May and October of each year, the CompanySBA shall publish in the Florida Administrative Weekly a statement of the FHCF’s Limit estimated Borrowing Capacity, Estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. (7) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to raise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1., Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.). *[***]: Certain information in this document has been exhausted, omitted and filed separately with the Company will not be entitled Securities and Exchange Commission. Confidential treatment has been requested with respect to further reimbursementsthe omitted portions.

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company with respect to each Covered Event commencing during the Contract Year in the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage Level, plus 10% 10 percent of the reimbursed Losses as a Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s Limit. (2) Section 215.555(4)(c)1., Florida Statutes, provides that the obligation of the FHCF with respect to all Contracts covering a particular Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on ofon the obligation of the FHCF provided in Section 215.555(4)(c)1., Florida Statutes, the SBA shall, upon the occurrence of a Covered Event, evaluate the potential Losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (4) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once the Company’s Limit has been exhausted, the Company will not be entitled to further reimbursements.

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event Loss Occurrence commencing during the Contract Year in for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a losses for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1The Reimbursement Percentage will be 45% or 75% or 90%, at the Company’s option as elected under Article XVIIIXIX., Florida Statutes, provides that the obligation (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding loss reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X. (4) Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s mandatory coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (45) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once the Company’s Limit limit of coverage has been exhausted, the Company will not be entitled to further reimbursements. (6) After the end of the calendar year, the SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative WeeklyRegister a statement of the FHCF’s estimated Borrowing Capacity, Estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. (7) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to raise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1. and (6), Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company Company, with respect to each Covered Event commencing during the Contract Year in for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company’s Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage LevelV(28), plus 105% of the reimbursed Losses as a for Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s LimitReimbursement. (2) Section 215.555(4)(c)1The Reimbursement Percentage will be 45% or 75% or 90%, at the Company’s option as elected under Article XX., Florida Statutes, provides that the obligation (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering a particular this Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding reimbursement calculations, the SBA shall, upon see section (3)(c) of Article X. (4) Upon the occurrence of a Covered Event, the SBA shall evaluate the potential Losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s coverage. If it appears that the Estimated Claims-Claims- Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (45) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once the Company’s Limit limit of coverage has been exhausted, the Company will not be entitled to further reimbursements. (6) After the end of the calendar year, the SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Register a statement of the FHCF’s estimated Borrowing Capacity, Estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. (7) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to raise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1. and (6), Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.).

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company with respect to each Covered Event commencing during the Contract Year in the amount of Ultimate Net Loss paid by the Company in excess of the Company’s 's Retention, as adjusted pursuant to the definition of Retention in Article V, multiplied by the applicable Coverage Level, plus 10% 10 percent of the reimbursed Losses as a Loss Adjustment Expense Allowance, the total of which shall not exceed the Company’s 's Limit. (2) Section 215.555(4)(c)1., Florida Statutes, provides that the obligation of the FHCF with respect to all Contracts covering a particular Contract Year shall not exceed the Actual Claims-Paying Capacity of the FHCF up to a specified dollar limit. (3) In order to assure that reimbursements do not exceed the statutory limit on the obligation of the FHCF provided in Section 215.555(4)(c)1., Florida Statutes, the SBA shall, upon the occurrence of a Covered Event, evaluate the potential Losses to the FHCF and the FHCF’s 's capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its Losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s 's coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the projected payout factors or multiples for determining each participating insurer’s 's projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. (4) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. Once the Company’s 's Limit has been exhausted, the Company will not be entitled to further reimbursements.