Common use of Reinsurance Clause in Contracts

Reinsurance. (1) All eligible livestock price insurance contracts accepted by the UCM will be automatically designated to the Commercial Fund. However, the Company may designate any eligible livestock price insurance contract accepted by the UCM to the Private Market Fund in accordance with Appendix III within two Federal workdays of acceptance of the contract by FCIC. (A) Private Market Fund (i) Proportional: The Company will cede to FCIC at least five percent (5%) and no more than sixty-five percent (65%) of total net book premium and associated liability for ultimate net losses on eligible livestock price insurance contracts, as designated in its Plan of Operations for the reinsurance year. Such percentage designation must be made in five percent (5%) increments.

Reinsurance. (1) All eligible livestock price insurance contracts accepted by the UCM PASS will be automatically designated to the Commercial Fund. However, the Company may designate any eligible livestock price insurance contract accepted by the UCM PASS to the Private Market Fund in accordance with Appendix III within two Federal workdays of acceptance of the contract by FCIC. (A) Private Market Fund (i) Proportional: The Company will cede to FCIC at least five percent (5%) and no more than sixty-five percent (65%) of total net book premium and associated liability for ultimate net losses on eligible livestock price insurance contracts, as designated in its Plan of Operations for the reinsurance year. Such percentage designation must be made in five percent (5%) increments.