Common use of NET RETAINED LINES Clause in Contracts

NET RETAINED LINES. A. This Contract applies only to such portion of any obligation that the Company retains net for its own account (prior to the deduction of any underlying reinsurance specifically permitted in this Contract). In calculating the amount of any loss hereunder and in computing the amount in excess of which this Contract attaches only loss in respect of that portion of any insurance, or reinsurance which the Company retains net shall be included. B. It is agreed that the amount of the Subscribing Reinsurer’s liability hereunder in respect of any loss shall not be increased by reason of the inability of the Company to collect from any other reinsurer, whether specific or general, any amount which may have Effective: January 1, 2009 Page 7 of 54 2009 Property Catastrophe Excess of Loss Contract — $825m x $500m become due from it whether such inability arises from the insolvency of such other reinsurer or otherwise. C. Allocation of losses and expenses to Legal Entities other than the Company pursuant to inter-company reinsurance among the Legal Entities and the Company shall be entirely disregarded for all purposes of this Contract. Article 9 — Florida Hurricane Catastrophe Fund (LM-02900-2006.04.14-P)(AM) A. Any loss reimbursement the Company or a Legal Entity receives under the Florida Hurricane Catastrophe Fund (“FHCF”) shall apply as follows: 1. Except as provided in subparagraph 2. below, any such loss reimbursement shall inure solely to the benefit of the Company and shall be entirely disregarded in applying all of the provisions of this Contract. 2. If one or more Loss Occurrences commencing during the term of this Contract result(s) in recoveries made by the Company or a Legal Entity under this Contract and the FHCF, and such recoveries, together with any other reinsurance recoveries made by the Company applicable to said Loss Occurrence(s), exceed the amount permitted by Florida law, any amount in excess thereof shall reduce the Ultimate Net Loss subject to this Contract for the Loss Occurrence(s) to which the recoveries apply. B. For purposes hereof, if a loss reimbursement received by the Company or a Legal Entity under the FHCF is based on the Company’s or a Legal Entity’s losses in more than one Loss Occurrence and the FHCF does not designate the amount allocable to each Loss Occurrence, the reimbursement shall be prorated in the proportion that the Company’s and the Legal Entity’s losses in each Loss Occurrence bear to the Company’s and the Legal Entity’s total losses arising out of all Loss Occurrences to which the recovery applies. C. Any reimbursement premiums or emergency assessment paid or payable by the Company or the Legal Entities under the FHCF shall be disregarded for purposes of determining subject premium and Ultimate Net Loss under this Contract.

NET RETAINED LINES. A. This Contract applies only to such portion of any obligation that the Company retains net for its own account (prior to the deduction of any underlying reinsurance specifically permitted in this Contract). In calculating the amount of any loss hereunder and in computing the amount in excess of which this Contract attaches only loss in respect of Excess of Loss Contract Contract No. 2010250 that portion of any insurance, or reinsurance which the Company retains net shall be included. B. It is agreed that the amount of the Subscribing Reinsurer’s liability hereunder in respect of any loss shall not be increased by reason of the inability of the Company to collect from any other reinsurer, whether specific or general, any amount which may have Effective: January 1, 2009 Page 7 of 54 2009 Property Catastrophe Excess of Loss Contract — $825m x $500m become due from it whether such inability arises from the insolvency of such other reinsurer or otherwise. C. Allocation of losses and expenses to Legal Entities other than the Company pursuant to inter-company reinsurance among the Legal Entities and the Company shall be entirely disregarded for all purposes of this Contract. Article 9 10 — Florida Hurricane Catastrophe Fund (LM-02900-2006.04.142009.12.18-P)(AMP) (AM) A. Any loss reimbursement the Company or a Legal Entity receives under the Florida Hurricane Catastrophe Fund (“FHCF”) shall apply as follows: 1. Except as provided in subparagraph 2A.2. below, any such loss reimbursement shall inure solely to the benefit of the Company and shall be entirely disregarded in applying all of the provisions of this Contract. 2. If one or more Loss Occurrences commencing during the term of this Contract result(s) in recoveries made by the Company or a Legal Entity under this Contract and under the FHCF, and such recoveries, together with any other reinsurance recoveries made by the Company applicable to said Loss Occurrence(s), exceed the Company’s Ultimate Net Loss therefrom, the amount permitted by Florida law, any amount in of such excess thereof shall reduce the Ultimate Net Loss subject to this Contract for the Loss Occurrence(s) to which the recoveries apply. B. For purposes hereof, if a loss reimbursement received by the Company or a Legal Entity under the FHCF is based on the Company’s or a Legal Entity’s losses in more than one Loss Occurrence and the FHCF does not designate the amount allocable to each Loss Occurrence, the reimbursement shall be prorated in the proportion that the Company’s and the Legal Entity’s losses in each Loss Occurrence bear to the Company’s and the Legal Entity’s Entities’ total losses arising out of all Loss Occurrences to which the recovery applies. C. Any reimbursement premiums or emergency assessment paid or payable by the Company or the Legal Entities under the FHCF shall be disregarded for purposes of determining subject premium and Ultimate Net Loss under this Contract.

NET RETAINED LINES. A. This Contract applies only to such portion of any obligation that the Company retains net for its own account (prior to the deduction of any underlying reinsurance specifically permitted in this Contract). In calculating the amount of any loss hereunder and in computing the amount in excess of which this Contract attaches only loss in respect of Effective: January 1, 2010 2010 Property Catastrophe Excess of Loss Contract Contract No. 2010250 that portion of any insurance, or reinsurance which the Company retains net shall be included. B. It is agreed that the amount of the Subscribing Reinsurer’s liability hereunder in respect of any loss shall not be increased by reason of the inability of the Company to collect from any other reinsurer, whether specific or general, any amount which may have Effective: January 1, 2009 Page 7 of 54 2009 Property Catastrophe Excess of Loss Contract — $825m x $500m become due from it whether such inability arises from the insolvency of such other reinsurer or otherwise. C. Allocation of losses and expenses to Legal Entities other than the Company pursuant to inter-company reinsurance among the Legal Entities and the Company shall be entirely disregarded for all purposes of this Contract. Article 9 10 — Florida Hurricane Catastrophe Fund (LM-02900-2006.04.142009.12.18-P)(AMP) (AM) A. Any loss reimbursement the Company or a Legal Entity receives under the Florida Hurricane Catastrophe Fund (“FHCF”) shall apply as follows: 1. Except as provided in subparagraph 2A.2. below, any such loss reimbursement shall inure solely to the benefit of the Company and shall be entirely disregarded in applying all of the provisions of this Contract. 2. If one or more Loss Occurrences commencing during the term of this Contract result(s) in recoveries made by the Company or a Legal Entity under this Contract and under the FHCF, and such recoveries, together with any other reinsurance recoveries made by the Company applicable to said Loss Occurrence(s), exceed the Company’s Ultimate Net Loss therefrom, the amount permitted by Florida law, any amount in of such excess thereof shall reduce the Ultimate Net Loss subject to this Contract for the Loss Occurrence(s) to which the recoveries apply. B. For purposes hereof, if a loss reimbursement received by the Company or a Legal Entity under the FHCF is based on the Company’s or a Legal Entity’s losses in more than one Loss Occurrence and the FHCF does not designate the amount allocable to each Loss Occurrence, the reimbursement shall be prorated in the proportion that the Company’s and the Legal Entity’s losses in each Loss Occurrence bear to the Company’s and the Legal Entity’s Entities’ total losses arising out of all Loss Occurrences to which the recovery applies. C. Any reimbursement premiums or emergency assessment paid or payable by the Company or the Legal Entities under the FHCF shall be disregarded for purposes of determining subject premium and Ultimate Net Loss under this Contract.

NET RETAINED LINES. A. This Contract applies only to such portion of any obligation that the Company retains net for its own account (prior to the deduction of any underlying reinsurance specifically permitted in this Contract). In calculating the amount of any loss hereunder and in computing the amount in excess of which this Contract attaches only loss in respect of that portion of any insurance, or reinsurance which the Company retains net shall be included. B. It is agreed that the amount of the Subscribing Reinsurer’s liability hereunder in respect of any loss shall not be increased by reason of the inability of the Company to collect from any other reinsurer, whether specific or general, any amount which may have Effective: January 1, 2009 Page 7 of 54 2009 Property Catastrophe Excess of Loss Contract — $825m x $500m become due from it whether such inability arises from the insolvency of such other reinsurer or otherwise. C. Allocation of losses and expenses to Legal Entities other than the Company pursuant to inter-company reinsurance among the Legal Entities and the Company shall be entirely disregarded for all purposes of this Contract. Article 9 — Florida Hurricane Catastrophe Fund (LM-02900-2006.04.14-P)(AMP) (AM) A. Any loss reimbursement the Company or a Legal Entity receives under the Florida Hurricane Catastrophe Fund (“FHCF”) shall apply as follows: 1. Except as provided in subparagraph 2. below, any such loss reimbursement shall inure solely to the benefit of the Company and shall be entirely disregarded in applying all of the provisions of this Contract. 2. If one or more Loss Occurrences commencing during the term of this Contract result(s) in recoveries made by the Company or a Legal Entity under this Contract and the FHCF, and such recoveries, together with any other reinsurance recoveries made by the Company applicable to said Loss Occurrence(s), exceed the amount permitted by Florida law, any amount in excess thereof shall reduce the Ultimate Net Loss subject to this Contract for the Loss Occurrence(s) to which the recoveries apply. B. For purposes hereof, if a loss reimbursement received by the Company or a Legal Entity under the FHCF is based on the Company’s or a Legal Entity’s losses in more than one Loss Occurrence and the FHCF does not designate the amount allocable to each Loss Occurrence, the reimbursement shall be prorated in the proportion that the Company’s and the Legal Entity’s losses in each Loss Occurrence bear to the Company’s and the Legal Entity’s total losses arising out of all Loss Occurrences to which the recovery applies. C. Any reimbursement premiums or emergency assessment paid or payable by the Company or the Legal Entities under the FHCF shall be disregarded for purposes of determining subject premium and Ultimate Net Loss under this Contract.