Common use of Retention and Limit Clause in Contracts

Retention and Limit. A. The Company shall retain and be liable for the first $20,500,000 of ultimate net loss arising out of each loss occurrence. The Reinsurer shall then be liable, as respects each excess layer, for the amount by which such ultimate net loss exceeds the Company's retention, but the liability of the Reinsurer under each excess layer shall not exceed the amount, shown as "Reinsurer's Per Occurrence Limit" for that excess layer in Schedule A attached hereto, as respects any one loss occurrence.  Whether a loss occurrence results in an ultimate net loss under one or more of the excess layers set forth in Schedule A attached hereto, the Company's retention will not exceed the first $20,500,000 of ultimate net loss arising out of such loss occurrence.  B. Recoveries shall always be made, in the first instance, under the lowest excess layer that is not entirely exhausted. If there is any amount of ultimate net loss arising out of a loss occurrence in excess of the Company's retention under the lowest excess layer that has not been recovered thereunder, such amount shall be recovered under the next or subsequent excess layer or layers, as appropriate. Recoveries under each excess layer set forth in Schedule A attached to and forming part of this Contract shall inure as follows:  1. Recoveries under the First Excess layer shall inure to the benefit of the Second Excess layer;  2. Recoveries under the First and Second Excess layers shall inure to the benefit of the Third Excess layer; and  3. Recoveries under the First, Second and Third Excess layers shall inure to the benefit of the Fourth Excess layer.  4. Recoveries under the First, Second, Third and Fourth Excess layers shall inure to the benefit of the Fifth Excess layer.  It is understood, however, that any fully exhausted excess layer or the exhausted portion of any excess layer shall no longer inure to the benefit of any subsequent excess layer(s).  C. Notwithstanding the provisions above, no claim shall be made hereunder as respects losses arising out of loss occurrences commencing during the term of this Contract unless at least two risks insured or reinsured by the Company are involved in such loss occurrence. For purposes hereof, the Company shall be the sole judge of what constitutes "one risk."  

Retention and Limit. A. The As respects the first contract year, the Company shall retain and be liable for the first $20,500,000 of ultimate net loss arising out of each loss occurrence.  B. As respects the second contract year, the Company shall retain and be liable for the amount of ultimate net loss arising out of each loss occurrence, calculated as follows:  *****  C. The Reinsurer shall then be liable, as respects each excess layer, for the amount by which such ultimate net loss exceeds the Company's applicable retention, but the liability of the Reinsurer under each excess layer shall not exceed the amount, shown as "Reinsurer's Per Occurrence Limit" for that excess layer in Schedule A attached hereto, as respects any one loss occurrence.  Whether a loss occurrence results in an ultimate net loss under one or more of the excess layers set forth in Schedule A attached hereto, the Company's retention will not exceed an amount equal to the first $20,500,000 applicable retention as set forth above, for the applicable contract year, of ultimate net loss arising out of such loss occurrence.  B. Recoveries D. As respects each contract year, recoveries shall always be made, in the first instance, under the lowest excess layer that is not entirely exhausted. If there is any amount of ultimate net loss arising out of a loss occurrence in excess of the Company's retention under the lowest excess layer that has not been recovered thereunderthereunder for that contract year, such amount shall be recovered under the next or subsequent excess layer or layers, as appropriate. Recoveries under each excess layer set forth in Schedule A attached to and forming part of this Contract shall inure as follows: follows (with such excess layers deemed placed at 100% prior to inuring):  1. Recoveries 100% recoveries under the First Excess layer shall inure to the benefit of the Second Excess layer;  2. Recoveries 100% recoveries under the First and Second Excess layers shall inure to the benefit of the Third Excess layer; and  3. Recoveries 100% recoveries under the First, Second and Third Excess layers shall inure to the benefit of the Fourth Excess layer.  4. Recoveries under the First, Second, Third and Fourth Excess layers shall inure to the benefit of the Fifth Excess layer.  It is understood, however, that any fully exhausted excess layer or the exhausted portion of any excess layer during a contract year shall no longer inure to the benefit of any subsequent excess layer(s)) for such contract year.  C. E. Notwithstanding the provisions above, no claim shall be made hereunder as respects losses arising out of loss occurrences commencing during the term of this Contract unless at least two risks insured or reinsured by the Company are involved in such loss occurrence. For purposes hereof, the Company shall be the sole judge of what constitutes "one risk."  

Retention and Limit. A. The As respects all losses subject hereto except losses arising out of an occurrence of an act of terrorism, as respects each excess layer of reinsurance coverage provided by this Contract, the Company shall retain and be liable for the first $20,500,000 amount of ultimate net loss (whether involving any one or any combination of the classes of business covered hereunder, regardless of the number of policies under which such loss is payable or the number of different interests insured), shown as “Company’s Retention” for that excess layer in Schedule A attached hereto, arising out of each loss occurrence. The Reinsurer shall then be liable, as respects each excess layer, for the amount by which such ultimate net loss exceeds the Company's ’s retention, but the liability of the Reinsurer under each excess layer shall not exceed the amount, shown as "“Reinsurer's ’s Per Occurrence Limit" ” for that excess layer in Schedule A attached hereto, as respects any one loss occurrence.  Whether a loss . B. As respects losses arising out of an occurrence results in of an act of terrorism, as respects each excess layer of reinsurance coverage provided hereunder, the Company shall retain and be liable for the first amount of ultimate net loss under one or more of the loss, shown as “Company’s Retention” for that excess layers set forth layer in Schedule A attached hereto, arising out of each occurrence. The Reinsurer shall then be liable, as respects each excess layer, for the amount by which such ultimate net loss exceeds the Company's retention will ’s retention, but the liability of the Reinsurer shall not exceed the first $20,500,000 amount shown as “Reinsurer’s Terrorism Per Occurrence Limit” for that excess layer in Schedule A attached hereto as respects any one occurrence of ultimate net an act of terrorism, nor shall it exceed the amount shown as “Reinsurer’s Contract Year Terrorism Limit” for that excess layer in Schedule A attached hereto as respects loss or losses arising out of such loss occurrenceall occurrences of acts of terrorism during any one contract year. C. The Company deems that the maximum Employers Liability policy limit subject hereto shall not exceed $1,000,000 for policies issued in Texas and Illinois, or $2,000,000 for all other policies.  B. Recoveries shall always be made, in the first instance, under the lowest excess layer that is not entirely exhausted. If there is any amount of ultimate net loss arising out of a loss occurrence Policy limits in excess of the Company's retention under the lowest excess layer that has not been recovered thereunder, such amount shall permissible amounts may be recovered under the next or subsequent excess layer or layers, as appropriate. Recoveries under each excess layer set forth in Schedule A attached to and forming part of this Contract shall inure as follows:  1. Recoveries under the First Excess layer shall inure submitted by special acceptance to the benefit of the Second Excess layer;  2. Recoveries under the First and Second Excess layers shall inure Reinsurer for coverage hereunder, subject to the benefit provisions of the Third Excess layer; paragraphs C and  3. Recoveries under the First, Second and Third Excess layers shall inure to the benefit D of the Fourth Excess layer.  4. Recoveries under the First, Second, Third and Fourth Excess layers shall inure to the benefit of the Fifth Excess layer.  It is understood, however, that any fully exhausted excess layer or the exhausted portion of any excess layer shall no longer inure to the benefit of any subsequent excess layer(s).  C. Notwithstanding the provisions above, no claim shall be made hereunder as respects losses arising out of loss occurrences commencing during the term of this Contract unless at least two risks insured or reinsured by the Company are involved in such loss occurrence. For purposes hereof, the Company shall be the sole judge of what constitutes "one risk."  Article V.

Retention and Limit. A. The Company shall retain and be liable for the first $20,500,000 21,500,000 of ultimate net loss arising out of each loss occurrence. The Reinsurer shall then be liable, as respects each excess layer, for the amount by which such ultimate net loss exceeds the Company's retention, but the liability of the Reinsurer under each excess layer shall not exceed the amount, shown as "Reinsurer's Per Occurrence Limit" for that excess layer in Schedule A attached hereto, as respects any one loss occurrence.  Whether a loss occurrence results in an ultimate net loss under one or more of the excess layers set forth in Schedule A attached hereto, the Company's retention will not exceed the first $20,500,000 21,500,000 of ultimate net loss arising out of such loss occurrence. . B. Recoveries shall always be made, in the first instance, under the lowest excess layer that is not entirely exhausted. If there is any amount of ultimate net loss arising out of a loss occurrence in excess of the Company's retention under the lowest excess layer that has not been recovered thereunder, such amount shall be recovered under the next or subsequent excess layer or layers, as appropriate. Recoveries under each excess layer set forth in Schedule A attached to and forming part of this Contract shall inure as follows: : 1. Recoveries under the First Excess layer shall inure to the benefit of the Second Excess layer; ; 2. Recoveries under the First and Second Excess layers shall inure to the benefit of the Third Excess layer; and and 3. Recoveries under the First, Second and Third Excess layers shall inure to the benefit of the Fourth Excess layer.  4. Recoveries under the First, Second, Third and Fourth Excess layers shall inure to the benefit of the Fifth Excess layer.  It is understood, however, that any fully exhausted excess layer or the exhausted portion of any excess layer shall no longer inure to the benefit of any subsequent excess layer(s). . C. Notwithstanding the provisions above, no claim shall be made hereunder as respects losses arising out of loss occurrences commencing during the term of this Contract unless at least two risks insured or reinsured by the Company are involved in such loss occurrence. For purposes hereof, the Company shall be the sole judge of what constitutes "one risk."  "

Retention and Limit. A. The As respects each excess layer of reinsurance coverage provided by this Contract, the Company shall retain and be liable for the first $20,500,000 amount of ultimate net loss arising out of loss, shown as "Company's Retention" for that excess layer in Schedule A attached hereto, as respects each loss occurrenceloss. The Reinsurer shall then be liable, as respects each excess layer, for the amount by which such ultimate net loss exceeds the Company's applicable retention, but the liability of the Reinsurer under each excess layer shall not exceed the amount, shown as "Reinsurer's Per Occurrence Principal Limit" for that excess layer in Schedule A attached hereto, as respects any one loss occurrence.  Whether a loss occurrence results in an ultimate net loss under one or more of each loss, nor shall it exceed the amount shown as "Reinsurer's Aggregate Limit" for that excess layers set forth layer in Schedule A attached hereto, as respects all losses for the Company's retention will not exceed term of this Contract. B. "Ultimate net loss" as used herein is defined as the first $20,500,000 of ultimate net sum or sums (including extra contractual obligations, interest on judgments, litigation expenses and all other loss arising out of such loss occurrence.  B. Recoveries shall always be madeadjustment expenses, in the first instance, under the lowest excess layer that is not entirely exhausted. If there is any amount of ultimate net loss arising out of a loss occurrence in excess except office expenses and salaries of the Company's retention under the lowest excess layer that has not been recovered thereunder, such amount shall be recovered under the next regular employees) paid or subsequent excess layer or layers, as appropriate. Recoveries under each excess layer set forth in Schedule A attached to and forming part of this Contract shall inure as follows:  1. Recoveries under the First Excess layer shall inure to the benefit of the Second Excess layer;  2. Recoveries under the First and Second Excess layers shall inure to the benefit of the Third Excess layer; and  3. Recoveries under the First, Second and Third Excess layers shall inure to the benefit of the Fourth Excess layer.  4. Recoveries under the First, Second, Third and Fourth Excess layers shall inure to the benefit of the Fifth Excess layer.  It is understood, however, that any fully exhausted excess layer or the exhausted portion of any excess layer shall no longer inure to the benefit of any subsequent excess layer(s).  C. Notwithstanding the provisions above, no claim shall be made hereunder as respects losses arising out of loss occurrences commencing during the term of this Contract unless at least two risks insured or reinsured payable by the Company in settlement of claims and in satisfaction of judgments rendered on account of such claims, after deduction of all salvage, all recoveries and all claims on inuring insurance or reinsurance, whether collectible or not. Ultimate net loss shall also be reduced by collateral (as perfected) associated with bonds subject to this Contract (or a pro rata portion thereof, where the collateral is also associated with bonds not subject hereto). Nothing herein shall be construed to mean that losses under this Contract are involved not recoverable until the Company's ultimate net loss has been ascertained. It is understood that the Company is not responsible for the reduction in such loss occurrencevalue or collapse of collateral due to unforeseen events after the original collateral assessment has been made. For purposes hereofMoreover, the Company value of collateral shall be subsequently re-evaluated by the sole judge of what constitutes "Company in the event adjustments are being made to the collective performance or completion penalty amounts issued to one riskprincipal."  

Retention and Limit. A. The Company shall retain and be liable for the first $20,500,000 25,100,000 of ultimate net loss arising out of each loss occurrence. The Reinsurer shall then be liable, as respects each excess layer, for the amount by which such ultimate net loss exceeds the Company's retention, but the liability of the Reinsurer under each excess layer shall not exceed the amount, shown as "Reinsurer's Per Occurrence Limit" for that excess layer in Schedule A attached hereto, as respects any one loss occurrence.  Whether a loss occurrence results in an ultimate net loss under one or more of the excess layers set forth in Schedule A attached hereto, the Company's retention will not exceed the first $20,500,000 25,100,000 of ultimate net loss arising out of such loss occurrence.  B. Recoveries shall always be made, in the first instance, under the lowest excess layer that is not entirely exhausted. If there is any amount of ultimate net loss arising out of a loss occurrence in excess of the Company's retention under the lowest excess layer that has not been recovered thereunder, such amount shall be recovered under the next or subsequent excess layer or layers, as appropriate. Recoveries under each excess layer set forth in Schedule A attached to and forming part of this Contract shall inure as follows:  1. Recoveries under the First Excess layer shall inure to the benefit of the Second Excess layer;  2. Recoveries under the First and Second Excess layers shall inure to the benefit of the Third Excess layer; and  3. Recoveries under the First, Second and Third Excess layers shall inure to the benefit of the Fourth Excess layer.  4. Recoveries under the First, Second, Third and Fourth Excess layers shall inure to the benefit of the Fifth Excess layer.  It is understood, however, that any fully exhausted excess layer or the exhausted portion of any excess layer shall no longer inure to the benefit of any subsequent excess layer(s).  C. Notwithstanding the provisions above, no claim shall be made hereunder as respects losses arising out of loss occurrences commencing during the term of this Contract unless at least two risks insured or reinsured by the Company are involved in such loss occurrence. For purposes hereof, the Company shall be the sole judge of what constitutes "one risk."  

Retention and Limit. A. The As respects the first contract year, the Company shall retain and be liable for the first $20,500,000 25,100,000 of ultimate net loss arising out of each loss occurrence.  B. As respects the second contract year, the Company shall retain and be liable for the amount of ultimate net loss arising out of each loss occurrence, calculated as follows:  Prior to the second contract year, but not later than March 1, 2018, the Company's retention shall be derived by averaging the probable maximum loss using the applicable data produced by a) the 2.49066-year modeled return time loss from the Applied Insurance Research (AIR) Touchstone v4 catastrophe modeling software, in the long term perspective, including demand surge, but excluding storm surge, and b) the 3.0297-year modeled return time loss from Risk Management Solutions (RMS) RiskLink v16 catastrophe modeling software, in the long-term perspective, including loss amplification, but excluding storm surge. Such calculations shall use the Company's projected data from December 31, 2017, determined by the Company's projected wind insurance in force on September 30, 2018.  C. The Reinsurer shall then be liable, as respects each excess layer, for the amount by which such ultimate net loss exceeds the Company's applicable retention, but the liability of the Reinsurer under each excess layer shall not exceed the amount, shown as "Reinsurer's Per Occurrence Limit" for that excess layer in Schedule A attached hereto, as respects any one loss occurrence.  Whether a loss occurrence results in an ultimate net loss under one or more of the excess layers set forth in Schedule A attached hereto, the Company's retention will not exceed an amount equal to the first $20,500,000 applicable retention as set forth above, for the applicable contract year, of ultimate net loss arising out of such loss occurrence.  B. Recoveries D. As respects each contract year, recoveries shall always be made, in the first instance, under the lowest excess layer that is not entirely exhausted. If there is any amount of ultimate net loss arising out of a loss occurrence in excess of the Company's retention under the lowest excess layer that has not been recovered thereunderthereunder for that contract year, such amount shall be recovered under the next or subsequent excess layer or layers, as appropriate. Recoveries under each excess layer set forth in Schedule A attached to and forming part of this Contract shall inure as follows: follows (with such excess layers deemed placed at 100% prior to inuring): 1. Recoveries 100% recoveries under the First Excess layer shall inure to the benefit of the Second Excess layer;  2. Recoveries 100% recoveries under the First and Second Excess layers shall inure to the benefit of the Third Excess layer; and  3. Recoveries 100% recoveries under the First, Second and Third Excess layers shall inure to the benefit of the Fourth Excess layer.  4. Recoveries 100% recoveries under the First, Second, Third and Fourth Excess layers shall inure to the benefit of the Fifth Excess layer.  It is understood, however, that any fully exhausted excess layer or the exhausted portion of any excess layer during a contract year shall no longer inure to the benefit of any subsequent excess layer(s)) for such contract year.  C. E. Notwithstanding the provisions above, no claim shall be made hereunder as respects losses arising out of loss occurrences commencing during the term of this Contract unless at least two risks insured or reinsured by the Company are involved in such loss occurrence. For purposes hereof, the Company shall be the sole judge of what constitutes "one risk."  

Retention and Limit. A. The As respects all losses subject hereto, except losses arising out of an occurrence of an act of terrorism, as respects each excess layer of reinsurance coverage provided by this Contract, the Company shall retain and be liable for the first $20,500,000 amount of ultimate net loss (whether involving any one or any combination of the classes of business covered hereunder, regardless of the number of policies under which such loss is payable or the number of different interests insured), shown as “Company’s Retention” for that excess layer in Schedule A attached hereto, arising out of each loss occurrence. The Reinsurer shall then be liable, as respects each excess layer, for the amount by which such ultimate net loss exceeds the Company's ’s retention, but the liability of the Reinsurer under each excess layer shall not exceed the amount, shown as "“Reinsurer's ’s Per Occurrence Limit" ” for that excess layer in Schedule A attached hereto, as respects any one loss occurrence.  Whether a loss Table of Contents B. As respects losses arising out of an occurrence results in of an act of terrorism, as respects each excess layer of reinsurance coverage provided hereunder, the Company shall retain and be liable for the first amount of ultimate net loss under one or more of the loss, shown as “Company’s Retention” for that excess layers set forth layer in Schedule A attached hereto, arising out of each occurrence. The Reinsurer shall then be liable, as respects each excess layer, for the amount by which such ultimate net loss exceeds the Company's retention will ’s retention, but the liability of the Reinsurer shall not exceed the first $20,500,000 of ultimate net loss arising out of such loss occurrence.  B. Recoveries shall always be made, in the first instance, under the lowest amount shown as “Reinsurer’s Terrorism Per Occurrence Limit” for that excess layer that is not entirely exhausted. If there is any amount of ultimate net loss arising out of a loss occurrence in excess of the Company's retention under the lowest excess layer that has not been recovered thereunder, such amount shall be recovered under the next or subsequent excess layer or layers, as appropriate. Recoveries under each excess layer set forth in Schedule A attached to and forming part hereto as respects any one occurrence of this an act of terrorism, nor shall it exceed the amount shown as “Reinsurer’s Contract shall inure as follows:  1. Recoveries under the First Excess layer shall inure to the benefit of the Second Excess layer;  2. Recoveries under the First and Second Excess layers shall inure to the benefit of the Third Excess layer; and  3. Recoveries under the First, Second and Third Excess layers shall inure to the benefit of the Fourth Excess layer.  4. Recoveries under the First, Second, Third and Fourth Excess layers shall inure to the benefit of the Fifth Excess layer.  It is understood, however, Year Terrorism Limit” for that any fully exhausted excess layer or the exhausted portion of any excess layer shall no longer inure to the benefit of any subsequent excess layer(s).  C. Notwithstanding the provisions above, no claim shall be made hereunder in Schedule A attached hereto as respects loss or losses arising out of loss all occurrences commencing of acts of terrorism during any one contract year. C. The Company deems that the term maximum Employers Liability policy limits subject hereto shall not exceed $2,000,000. Policy limits in excess of this Contract unless at least two risks insured or reinsured $2,000,000 may be submitted by special acceptance to the Company are involved in such loss occurrence. For purposes hereofReinsurer for coverage hereunder, subject to the Company shall be provisions of paragraph C of the sole judge of what constitutes "one riskExclusions Article."  

Retention and Limit. A. The As respects each excess layer of reinsurance coverage provided by this Contract, the Company shall retain and be liable for the first $20,500,000 amount of ultimate net loss loss, shown as "Company's Retention" for that excess layer in Schedule A attached hereto, arising out of each loss occurrence. The Reinsurer shall then be liable, as respects each excess layer, for the amount by which such ultimate net loss exceeds the Company's applicable retention, but the liability of the Reinsurer under each excess layer shall not exceed the amount, shown as "Reinsurer's Per Occurrence Limit" for that excess layer in Schedule A attached hereto, as respects any one loss occurrence.  Whether a loss occurrence results in an ultimate net loss under one or more of the excess layers set forth in Schedule A attached hereto, the Company's retention will not exceed the first $20,500,000 of ultimate net loss arising out of such loss occurrence. . B. Recoveries shall always be made, in the first instance, under the lowest excess layer that is not entirely exhausted. If there is any amount of ultimate net loss arising out of a loss occurrence in excess of the Company's retention under the lowest excess layer that has not been recovered thereunder, such amount shall be recovered under the next or subsequent excess layer or layers, as appropriate. Recoveries under each excess layer set forth in Schedule A attached to and forming part of this Contract shall inure as follows:  1. Recoveries under the First Excess layer shall inure to the benefit of the Second Excess layer;  2. Recoveries under the First and Second Excess layers shall inure to the benefit of the Third Excess layer; and  3. Recoveries under the First, Second and Third Excess layers shall inure to the benefit of the Fourth Excess layer.  4. Recoveries under the First, Second, Third and Fourth Excess layers shall inure to the benefit of the Fifth Excess layer.  It is understood, however, that any fully exhausted excess layer or the exhausted portion of any excess layer shall no longer inure to the benefit of any subsequent excess layer(s).  C. Notwithstanding the provisions above, no claim shall be made hereunder as respects losses arising out of loss occurrences commencing during the term of this Contract unless at least two risks insured or reinsured by the Company are involved in such loss occurrence. For purposes hereof, the Company shall be the sole judge of what constitutes "one risk."  21\F7V1141 Page 4 The Company has purchased 90.0% of the FHCF mandatory layer of coverage and shall be deemed to inure to the benefit of this Contract. Loss adjustment expense recoveries paid by the FHCF in excess of the actual loss adjustment expense paid by the Company shall inure to the benefit of the Company and shall not reduce the amount of ultimate net loss hereunder. Further, any FHCF loss reimbursement shall be deemed to be paid to the Company in accordance with the FHCF reimbursement contract at the full payout level set forth therein and will be deemed not to be reduced by any reduction or exhaustion of the FHCF's claims-paying capacity as respects the mandatory FHCF coverage.

Retention and Limit. A. The As respects all losses subject hereto, except losses arising out of an occurrence of an act of terrorism, as respects each excess layer of reinsurance coverage provided by this Contract, the Company shall retain and be liable for the first $20,500,000 amount of ultimate net loss (whether involving any one or any combination of the classes of business covered hereunder, regardless of the number of policies under which such loss is payable or the number of different interests insured), shown as "Company's Retention" for that excess layer in Schedule A attached hereto, arising out of each loss occurrence. The Reinsurer shall then be liable, as respects each excess layer, for the amount by which such ultimate net loss exceeds the Company's retention, but the liability of the Reinsurer under each excess layer shall not exceed the amount, shown as "Reinsurer's Per Occurrence Limit" for that excess layer in Schedule A attached hereto, as respects any one loss occurrence.  Whether a loss . B. As respects losses arising out of an occurrence results in of an act of terrorism, as respects each excess layer of reinsurance coverage provided hereunder, the Company shall retain and be liable for the first amount of ultimate net loss under one or more of the loss, shown as "Company's Retention" for that excess layers set forth layer in Schedule A attached hereto, arising out of each occurrence. The Reinsurer shall then be liable, as respects each excess layer, for the amount by which such ultimate net loss exceeds the Company's retention will retention, but the liability of the Reinsurer shall not exceed the first $20,500,000 amount shown as "Reinsurer's Terrorism Per Occurrence Limit" for that excess layer in Schedule A attached hereto as respects any one occurrence of ultimate net an act of terrorism, nor shall it exceed the amount shown as "Reinsurer's Contract Year Terrorism Limit" for that excess layer in Schedule A attached hereto as respects loss or losses arising out of such loss occurrenceall occurrences of acts of terrorism during any one contract year. C. The Company deems that the maximum Employers Liability policy limit subject hereto shall not exceed $1,000,000 for policies issued in Texas and Illinois, or $2,000,000 for all other policies.  B. Recoveries shall always be made, in the first instance, under the lowest excess layer that is not entirely exhausted. If there is any amount of ultimate net loss arising out of a loss occurrence Policy limits in excess of the Company's retention under the lowest excess layer that has not been recovered thereunder, such amount shall permissible amounts may be recovered under the next or subsequent excess layer or layers, as appropriate. Recoveries under each excess layer set forth in Schedule A attached to and forming part of this Contract shall inure as follows:  1. Recoveries under the First Excess layer shall inure submitted by special acceptance to the benefit Reinsurer for coverage hereunder, subject to the provisions of paragraph C of the Second Excess layer;  2. Recoveries under the First and Second Excess layers shall inure to the benefit of the Third Excess layer; and  3. Recoveries under the First, Second and Third Excess layers shall inure to the benefit of the Fourth Excess layer.  4. Recoveries under the First, Second, Third and Fourth Excess layers shall inure to the benefit of the Fifth Excess layer.  It is understood, however, that any fully exhausted excess layer or the exhausted portion of any excess layer shall no longer inure to the benefit of any subsequent excess layer(s).  C. Notwithstanding the provisions above, no claim shall be made hereunder as respects losses arising out of loss occurrences commencing during the term of this Contract unless at least two risks insured or reinsured by the Company are involved in such loss occurrence. For purposes hereof, the Company shall be the sole judge of what constitutes "one riskExclusions Article."  

Retention and Limit. A. The As respects all losses subject hereto except losses arising out of an occurrence of an act of terrorism, as respects each excess layer of reinsurance coverage provided by this Contract, the Company shall retain and be liable for the first $20,500,000 amount of ultimate net loss (whether involving any one or any combination of the classes of business covered hereunder, regardless of the number of policies under which such loss is payable or the number of different interests insured), shown as “Company’s Retention” for that excess layer in Schedule A attached hereto, arising out of each loss occurrence. The Reinsurer shall then be liable, as respects each excess layer, for the amount by which such ultimate net loss exceeds the Company's ’s retention, but the liability of the Reinsurer under each excess layer shall not exceed the amount, shown as "“Reinsurer's ’s Per Occurrence Limit" ” for that excess layer in Schedule A attached hereto, as respects any one loss occurrence.  Whether a loss . B. As respects losses arising out of an occurrence results in of an act of terrorism, as respects each excess layer of reinsurance coverage provided hereunder, the Company shall retain and be liable for the first amount of ultimate net loss under one or more of the loss, shown as “Company’s Retention” for that excess layers set forth layer in Schedule A attached hereto, arising out of each occurrence. The Reinsurer shall then be liable, as respects each excess layer, for the amount by which such ultimate net loss exceeds the Company's retention will ’s retention, but the liability of the Reinsurer shall not exceed the first $20,500,000 amount shown as “Reinsurer’s Terrorism Per Occurrence Limit” for that excess layer in Schedule A attached hereto as respects any one occurrence of ultimate net an act of terrorism, nor shall it exceed the amount shown as “Reinsurer’s Contract Year Terrorism Limit” for that excess layer in Schedule A attached hereto as respects loss or losses arising out of such loss occurrenceall occurrences of acts of terrorism during any one contract year. C. The Company deems that the maximum Employers Liability policy limit subject hereto shall not exceed $1,000,000 for policies issued in Texas and Illinois, or $2,000,000 for all other policies.  B. Recoveries shall always be made, in the first instance, under the lowest excess layer that is not entirely exhausted. If there is any amount of ultimate net loss arising out of a loss occurrence Policy limits in excess of the Company's retention under the lowest excess layer that has not been recovered thereunder, such amount shall permissible amounts may be recovered under the next or subsequent excess layer or layers, as appropriate. Recoveries under each excess layer set forth in Schedule A attached to and forming part of this Contract shall inure as follows:  1. Recoveries under the First Excess layer shall inure submitted by special acceptance to the benefit of the Second Excess layer;  2. Recoveries under the First and Second Excess layers shall inure Reinsurer for coverage hereunder, subject to the benefit provisions of the Third Excess layer; and  3. Recoveries under the First, Second and Third Excess layers shall inure to the benefit paragraph C of the Fourth Excess layer.  4. Recoveries under the First, Second, Third and Fourth Excess layers shall inure to the benefit of the Fifth Excess layer.  It is understood, however, that any fully exhausted excess layer or the exhausted portion of any excess layer shall no longer inure to the benefit of any subsequent excess layer(s).  C. Notwithstanding the provisions above, no claim shall be made hereunder as respects losses arising out of loss occurrences commencing during the term of this Contract unless at least two risks insured or reinsured by the Company are involved in such loss occurrence. For purposes hereof, the Company shall be the sole judge of what constitutes "one risk."  Article V.

Retention and Limit. A. The As respects all losses subject hereto, except losses arising out of an occurrence of an act of terrorism, as respects each excess layer of reinsurance coverage provided by this Contract, the Company shall retain and be liable for the first $20,500,000 amount of ultimate net loss (whether involving any one or any combination of the classes of business covered hereunder, regardless of the number of policies under which such loss is payable or the number of different interests insured), shown as “Company’s Retention” for that excess layer in Schedule A attached hereto, arising out of each loss occurrence. The Reinsurer shall then be liable, as respects each excess layer, for the amount by which such ultimate net loss exceeds the Company's ’s retention, but the liability of the Reinsurer under each excess layer shall not exceed the amount, shown as "“Reinsurer's ’s Per Occurrence Limit" ” for that excess layer in Schedule A attached hereto, as respects any one loss occurrence.  Whether a loss . B. As respects losses arising out of an occurrence results in of an act of terrorism, as respects each excess layer of reinsurance coverage provided hereunder, the Company shall retain and be liable for the first amount of ultimate net loss under one or more of the loss, shown as “Company’s Retention” for that excess layers set forth layer in Schedule A attached hereto, arising out of each occurrence. The Reinsurer shall then be liable, as respects each excess layer, for the amount by which such ultimate net loss exceeds the Company's retention will ’s retention, but the liability of the Reinsurer shall not exceed the first $20,500,000 of ultimate net loss arising out of such loss occurrence.  B. Recoveries shall always be made, in the first instance, under the lowest amount shown as “Reinsurer’s Terrorism Per Occurrence Limit” for that excess layer that is not entirely exhausted. If there is any amount of ultimate net loss arising out of a loss occurrence in excess of the Company's retention under the lowest excess layer that has not been recovered thereunder, such amount shall be recovered under the next or subsequent excess layer or layers, as appropriate. Recoveries under each excess layer set forth in Schedule A attached to and forming part hereto as respects any one occurrence of this an act of terrorism, nor shall it exceed the amount shown as “Reinsurer’s Contract shall inure as follows:  1. Recoveries under the First Excess layer shall inure to the benefit of the Second Excess layer;  2. Recoveries under the First and Second Excess layers shall inure to the benefit of the Third Excess layer; and  3. Recoveries under the First, Second and Third Excess layers shall inure to the benefit of the Fourth Excess layer.  4. Recoveries under the First, Second, Third and Fourth Excess layers shall inure to the benefit of the Fifth Excess layer.  It is understood, however, Year Terrorism Limit” for that any fully exhausted excess layer or the exhausted portion of any excess layer shall no longer inure to the benefit of any subsequent excess layer(s).  C. Notwithstanding the provisions above, no claim shall be made hereunder in Schedule A attached hereto as respects loss or losses arising out of loss all occurrences commencing of acts of terrorism during any one contract year. C. The Company deems that the term maximum Employers Liability policy limits subject hereto shall not exceed $2,000,000. Policy limits in excess of this Contract unless at least two risks insured or reinsured $2,000,000 may be submitted by special acceptance to the Company are involved in such loss occurrence. For purposes hereofReinsurer for coverage hereunder, subject to the Company shall be provisions of paragraph C of the sole judge of what constitutes "one riskExclusions Article."  

Retention and Limit. A. The As respects all losses subject hereto except losses arising out of an occurrence of terrorism, the Company shall retain and be liable for the first $20,500,000 500,000 of ultimate net loss (whether involving any one or any combination of the classes of business covered hereunder, regardless of the number of policies under which such loss is payable or the number of different interests insured) arising out of each loss occurrence. The Reinsurer shall then be liable, as respects each excess layer, liable for the amount by which such ultimate net loss exceeds the Company's ’s retention, but the liability of the Reinsurer under each excess layer shall not exceed the amount, shown as "Reinsurer's Per Occurrence Limit" for that excess layer in Schedule A attached hereto, $500,000 as respects any one loss occurrence.  Whether a loss . B. As respects all losses arising out of an occurrence results in an ultimate net loss under one or more of the excess layers set forth in Schedule A attached heretoterrorism, the Company's retention will not exceed Company shall retain and be liable for the first $20,500,000 500,000 of ultimate net loss (whether involving any one or any combination of the classes of business covered hereunder, regardless of the number of policies under which such loss is payable or the number of different interests insured) arising out of such loss each occurrence.  B. Recoveries The Reinsurer shall always then be made, in liable for the first instance, under the lowest excess layer that is not entirely exhausted. If there is any amount of by which such ultimate net loss arising out of a loss occurrence in excess exceeds the Company’s retention, but the liability of the Company's retention under Reinsurer shall not exceed $500,000 as respects any one occurrence, nor shall it exceed $500,000 as respects all occurrences of terrorism during the lowest excess layer that has not been recovered thereunder, such amount shall be recovered under the next or subsequent excess layer or layers, as appropriate. Recoveries under each excess layer set forth in Schedule A attached to and forming part term of this Contract shall inure as follows:  1. Recoveries under the First Excess layer shall inure to the benefit of the Second Excess layer;  2. Recoveries under the First and Second Excess layers shall inure to the benefit of the Third Excess layer; and  3. Recoveries under the First, Second and Third Excess layers shall inure to the benefit of the Fourth Excess layer.  4. Recoveries under the First, Second, Third and Fourth Excess layers shall inure to the benefit of the Fifth Excess layer.  It is understood, however, that any fully exhausted excess layer or the exhausted portion of any excess layer shall no longer inure to the benefit of any subsequent excess layer(s). Contract. C. Notwithstanding the provisions of paragraphs A and B above, no claim shall be made hereunder if the Company’s net earned premium subject hereto exceeds $155,000,000 in any one contract year (excluding the runoff period of the final contract year), the Company’s recoveries as respects losses arising out of loss occurrences commencing during that contract year, shall be reduced in the term of this Contract unless at least two risks insured or reinsured by same proportion that $155,000,000 bears to the Company are involved Company’s actual net earned premium in such loss occurrencecontract year. For purposes hereof, Any recoveries made prior to determination of the Company Company’s net earned premium for the contract year shall be the sole judge of what constitutes "one riskadjusted accordingly."  

Retention and Limit. A. The As respects all losses subject hereto except losses arising out of an occurrence of terrorism, as respects each excess layer of reinsurance coverage provided by this Contract, the Company shall retain and be liable for the first $20,500,000 amount of ultimate net loss (whether involving any one or any combination of the classes of business covered hereunder, regardless of the number of policies under which such loss is payable or the number of different interests insured), shown as “Company’s Retention” for that excess layer in Schedule A attached hereto, arising out of each loss occurrence. The Reinsurer shall then be liable, as respects each excess layer, for the amount by which such ultimate net loss exceeds the Company's ’s retention, but the liability of the Reinsurer under each excess layer shall not exceed the amount, shown as "“Reinsurer's ’s Per Occurrence Limit" ” for that excess layer in Schedule A attached hereto, as respects any one loss occurrence.  Whether a loss . B. As respects losses arising out of an occurrence results in an of terrorism, as respects each excess layer of reinsurance coverage provided hereunder, the Company shall retain and be liable for the first amount of ultimate net loss under one or more of the loss, shown as “Company’s Retention” for that excess layers set forth layer in Schedule A attached hereto, arising out of each occurrence. The Reinsurer shall then be liable, as respects each excess layer, for the amount by which such ultimate net loss exceeds the Company's retention will ’s retention, but the liability of the Reinsurer shall not exceed the first $20,500,000 of ultimate net loss arising out of such loss occurrence.  B. Recoveries shall always be made, in the first instance, under the lowest amount shown as “Reinsurer’s Terrorism Per Occurrence Limit” for that excess layer that is not entirely exhausted. If there is any amount of ultimate net loss arising out of a loss occurrence in excess of the Company's retention under the lowest excess layer that has not been recovered thereunder, such amount shall be recovered under the next or subsequent excess layer or layers, as appropriate. Recoveries under each excess layer set forth in Schedule A attached to and forming part hereto as respects any one occurrence of terrorism, nor shall it exceed the amount shown as “Reinsurer’s Total Terrorism Limit” for that excess layer in Schedule A attached hereto as respects loss or losses arising out of all occurrences of terrorism during the term of this Contract shall inure as follows:  1. Recoveries under the First Excess layer shall inure to the benefit of the Second Excess layer;  2. Recoveries under the First and Second Excess layers shall inure to the benefit of the Third Excess layer; and  3. Recoveries under the First, Second and Third Excess layers shall inure to the benefit of the Fourth Excess layer.  4. Recoveries under the First, Second, Third and Fourth Excess layers shall inure to the benefit of the Fifth Excess layer.  It is understood, however, that any fully exhausted excess layer or the exhausted portion of any excess layer shall no longer inure to the benefit of any subsequent excess layer(s). Contract. C. Notwithstanding the provisions of paragraphs A and B above, no claim shall be made hereunder if the Company’s net earned premium subject hereto exceeds $155,000,000 in any one contract year (excluding the runoff period of the final contract year), the Company’s recoveries from losses for each excess layer, as respects losses arising out of loss occurrences commencing during that contract year, shall be reduced in the term of this Contract unless at least two risks insured or reinsured by same proportion that $155,000,000 bears to the Company are involved Company’s actual net earned premium in such loss occurrencecontract year. For purposes hereof, Any recoveries made prior to determination of the Company Company’s net earned premium for the contract year shall be the sole judge of what constitutes "one riskadjusted accordingly."  

Retention and Limit. A. The As respects all losses subject hereto except losses arising out of an occurrence of an act of terrorism, as respects each excess layer of reinsurance coverage provided by this Contract, the Company shall retain and be liable for the first $20,500,000 amount of ultimate net loss (whether involving any one or any combination of the classes of business covered hereunder, regardless of the number of policies under which such loss is payable or the number of different interests insured), shown as “Company’s Retention” for that excess layer in Schedule A attached hereto, arising out of each loss occurrence. The Reinsurer shall then be liable, as respects each excess layer, for the amount by which such ultimate net loss exceeds the Company's ’s retention, but the liability of the Reinsurer under each excess layer shall not exceed the amount, shown as "“Reinsurer's ’s Per Occurrence Limit" ” for that excess layer in Schedule A attached hereto, as respects any one loss occurrence.  Whether a loss . B. As respects losses arising out of an occurrence results in of an act of terrorism, as respects each excess layer of reinsurance coverage provided hereunder, the Company shall retain and be liable for the first amount of ultimate net loss under one or more of the loss, shown as “Company’s Retention” for that excess layers set forth layer in Schedule A attached hereto, arising out of each occurrence. The Reinsurer shall then be liable, as respects each excess layer, for the amount by which such ultimate net loss exceeds the Company's retention will ’s retention, but the liability of the Reinsurer shall not exceed the first $20,500,000 amount shown as “Reinsurers Terrorism Per Occurrence Limit” for that excess layer in Schedule A attached hereto as respects any one occurrence of ultimate net an act of terrorism, nor shall it exceed the amount shown as “Reinsurer’s Contract Year Terrorism Limit” for that excess layer in Schedule A attached hereto as respects loss or losses arising out of such loss occurrenceall occurrences of acts of terrorism during any one contract year. C. The Company deems that the maximum Employers Liability policy limit subject hereto shall not exceed $1,000,000 for policies issued in Texas and Illinois, or $2,000,000 for all other policies.  B. Recoveries shall always be made, in the first instance, under the lowest excess layer that is not entirely exhausted. If there is any amount of ultimate net loss arising out of a loss occurrence Policy limits in excess of the Company's retention under the lowest excess layer that has not been recovered thereunder, such amount shall permissible amounts may be recovered under the next or subsequent excess layer or layers, as appropriate. Recoveries under each excess layer set forth in Schedule A attached to and forming part of this Contract shall inure as follows:  1. Recoveries under the First Excess layer shall inure submitted by special acceptance to the benefit of the Second Excess layer;  2. Recoveries under the First and Second Excess layers shall inure Reinsurer for coverage hereunder, subject to the benefit provisions of the Third Excess layer; and  3. Recoveries under the First, Second and Third Excess layers shall inure to the benefit paragraph C of the Fourth Excess layer.  4. Recoveries under the First, Second, Third and Fourth Excess layers shall inure to the benefit of the Fifth Excess layer.  It is understood, however, that any fully exhausted excess layer or the exhausted portion of any excess layer shall no longer inure to the benefit of any subsequent excess layer(s).  C. Notwithstanding the provisions above, no claim shall be made hereunder as respects losses arising out of loss occurrences commencing during the term of this Contract unless at least two risks insured or reinsured by the Company are involved in such loss occurrence. For purposes hereof, the Company shall be the sole judge of what constitutes "one risk."  Article V.

Retention and Limit. A. The As respects each excess layer of reinsurance coverage provided by this Contract, the Company shall retain and be liable for the first $20,500,000 amount of ultimate net loss loss, shown as "Company's Retention" for each excess layer in Schedule A attached hereto, arising out of each loss occurrence. The Reinsurer shall then be liable, as respects each excess layer, for the amount by which such ultimate net loss exceeds the Company's applicable retention, but the liability of the Reinsurer under each excess layer shall not exceed the amount, shown as "Reinsurer's Per Occurrence Limit" for that excess layer in Schedule A attached hereto, as respects any one loss occurrence. B. The following shall apply as respects recoveries under each excess layer set forth in Schedule A attached hereto: 1.  Whether a Recoveries under the First Excess layer ($84,000,000 in excess of $16,000,000 of ultimate net loss arising out of each loss occurrence and $168,000,000 of ultimate net loss arising out of all loss occurrences) shall inure to the benefit of the Second Excess layer; 2. Recoveries under the First and Second Excess layers shall inure to the benefit of the Third Excess layer; and 3. Recoveries under the First, Second and Third Excess layers shall inure to the benefit of the Fourth Excess layer; and 4. Recoveries under the First, Second, Third, and Fourth Excess layers shall inure to the benefit of the Fifth Excess layer. C. In the event any one loss occurrence results in an ultimate net loss under one or more of the excess layers set forth in Schedule A attached hereto, the Company's retention will not exceed the first $20,500,000 16,000,000 of ultimate net loss arising out of such loss occurrence. . B. Recoveries shall always be made, in the first instance, under the lowest excess layer that is not entirely exhausted. If there is any amount of ultimate net loss arising out of a loss occurrence in excess of the Company's retention under the lowest excess layer that has not been recovered thereunder, such amount shall be recovered under the next or subsequent excess layer or layers, as appropriate. Recoveries under each excess layer set forth in Schedule A attached to and forming part of this Contract shall inure as follows:  1. Recoveries under the First Excess layer shall inure to the benefit of the Second Excess layer;  2. Recoveries under the First and Second Excess layers shall inure to the benefit of the Third Excess layer; and  3. Recoveries under the First, Second and Third Excess layers shall inure to the benefit of the Fourth Excess layer.  4. Recoveries under the First, Second, Third and Fourth Excess layers shall inure to the benefit of the Fifth Excess layer.  It is understood, however, that any fully exhausted excess layer or the exhausted portion of any excess layer shall no longer inure to the benefit of any subsequent excess layer(s).  C. D. Notwithstanding the provisions above, no claim shall be made hereunder as respects losses arising out of loss occurrences commencing during the term of this Contract unless at least two risks insured or reinsured by the Company are involved in such loss occurrence. For purposes hereof, the Company shall be the sole judge of what constitutes "one risk."  "