Common use of SECTION A COVERAGE -- PREMIUM Clause in Contracts

SECTION A COVERAGE -- PREMIUM. (a) On the Effective Date, in respect of the Section A Coverage, Retrocedant shall pay to the account of Retrocessionaire an amount (the "INITIAL SECTION A PREMIUM") equal to one hundred percent (100%) of the carrying value on the books of Retrocedant as of June 30, 2002, of the aggregate of all loss and loss adjustment expense and ceding commission reserves relating to the Reinsurance Contract for the coverage period under this Agreement, determined in accordance with statutory accounting principles on a basis consistent in all material respects with the methods, principles, practices and policies employed in the preparation and presentation of Retrocedant's annual statutory financial statement as of December 31, 2001 as filed with the Vermont Department of Insurance and as submitted to The St. Xxxx, and subject to the adjustments as set forth on Exhibit A hereto (the "LOSS RESERVE ADJUSTMENTS"), as applicable. (b) As soon as reasonably practicable, but in no event later than [75] days following the Effective Date, Retrocedant shall prepare and deliver to Retrocessionaire an accounting, , including the calculation of all Loss Reserve Adjustments as provided for herein (the "PROPOSED LOSS RESERVE ACCOUNTING") of all loss and loss adjustment expense reserves and ceding commission reserves relating to the Reinsurance Contract for the coverage period under this Agreement, all as of the Effective Date, determined in accordance with statutory accounting principles on a basis consistent in all material respects with the methods, principles, practices and policies employed in the preparation and presentation of Retrocedant's annual statutory financial statement as of December 31, 2001 as filed with the Vermont Department of Insurance and as submitted to The St. Xxxx, adjusted to reflect the Loss Reserve Adjustments, as applicable (the "FINAL SECTION A PREMIUM"). In the event the Final Section A Premium is greater than the Initial Section A Premium, Retrocedant shall promptly pay to the account of Retrocessionaire the difference plus interest on such amount at the Applicable Rate (as defined below) from and including the Effective Date to and including the date of such payment. In the event the Initial Section A Premium is greater than the Final Section A Premium, Retrocessionaire shall promptly pay to the account of Retrocedant the difference plus interest on such amount at the Applicable Rate from and including the Effective Date to and including the date of such payment. (c) Notwithstanding the foregoing, the parties agree that all gross estimated premiums written prior to the Effective Date and earned but not yet billed ("EBUB", and also referred to as "estimated premiums receivable" or "EBNR") as of the Effective Time and relating to the Reinsurance Contracts, as determined in accordance with Retrocedant's customary practices and procedures and as submitted to The St. Xxxx, shall be allocated to Retrocedant. All payments received after the Effective Time in respect of EBUB as of the Effective Time shall be retained by Retrocedant, and all rights to collect such amounts shall be retained by Retrocedant. Any changes made on or after the Effective Time as to the the estimate of EBUB as of the Effective Time shall be for the account of Retrocessionaire.

SECTION A COVERAGE -- PREMIUM. (a) On the Effective Effrective Date, in respect of the Section A Coverage, Retrocedant shall pay to the account of Retrocessionaire an amount (the "INITIAL SECTION A PREMIUM") equal to one hundred percent (100%) of the carrying value on the books of Retrocedant as of June 30, 2002, of the aggregate of all loss and loss adjustment expense and ceding commission reserves relating to the Reinsurance Contract for the coverage period under this Agreement, determined in accordance with statutory accounting principles on a basis consistent in all material respects with the methods, principles, practices and policies employed in the preparation and presentation of Retrocedant's annual statutory financial statement as of December 31, 2001 as filed with the Vermont Minnesota Department of Insurance and as submitted to The St. Xxxx, and subject to the adjustments as set forth on Exhibit A hereto (the "LOSS RESERVE ADJUSTMENTS"), as applicable. (b) As soon as reasonably practicable, but in no event later than [75] days following the Effective Date, Retrocedant shall prepare and deliver to Retrocessionaire an accounting, , including the calculation of all Loss Reserve Adjustments as provided for herein (the "PROPOSED LOSS RESERVE ACCOUNTING") of all loss and loss adjustment expense reserves and ceding commission reserves relating to the Reinsurance Contract for the coverage period under this Agreement, all as of the Effective DateDate , determined in accordance with statutory accounting principles on a basis consistent in all material respects with the methods, principles, practices and policies employed in the preparation and presentation of Retrocedant's annual statutory financial statement as of December 31, 2001 as filed with the Vermont Minnesota Department of Insurance and as submitted to The St. Xxxx, adjusted to reflect the Loss Reserve Adjustments, as applicable (the "FINAL SECTION A PREMIUM"). In the event the Final Section A Premium is greater than the Initial Section A Premium, Retrocedant shall promptly pay to the account of Retrocessionaire the difference plus interest on such amount at the Applicable Rate (as defined below) from and including the Effective Date to and including the date of such payment. In the event the Initial Section A Premium is greater than the Final Section A Premium, Retrocessionaire shall promptly pay to the account of Retrocedant the difference plus interest on such amount at the Applicable Rate from and including the Effective Date to and including the date of such payment. (c) Notwithstanding the foregoing, the parties agree that all gross estimated premiums written prior to the Effective Date and earned but not yet billed ("EBUB", and also referred to as "estimated premiums receivable" or "EBNR") as of the Effective Time and relating to the Reinsurance ContractsContract, as determined in accordance with Retrocedant's customary practices and procedures and as submitted to The St. Xxxx, shall be allocated to Retrocedant. All payments received after the Effective Time in respect of EBUB as of the Effective Time shall be retained by Retrocedant, and all rights to collect such amounts shall be retained by Retrocedant. Any changes made on or after the Effective Time as to the the estimate of EBUB as of the Effective Time shall be for the account of Retrocessionaire.

SECTION A COVERAGE -- PREMIUM. (a) On the Effective Date, in respect of the Section A Coverage, Retrocedant shall pay to the account of Retrocessionaire an amount (the "INITIAL SECTION A PREMIUM") equal to one hundred percent (100%) of the carrying value on the books of Retrocedant as of June 30, 2002, of the aggregate of all loss and loss adjustment expense and ceding commission reserves relating to the Reinsurance Contract Contracts for the coverage period under this Agreement, determined in accordance with statutory accounting principles on a basis consistent in all material respects with the methods, principles, practices and policies employed in the preparation and presentation of Retrocedant's annual statutory financial statement as of December 31, 2001 as filed with the Vermont Minnesota Department of Insurance Commerce and as submitted to The St. Xxxx, and subject to the adjustments as set forth on Exhibit A B hereto (the "LOSS RESERVE ADJUSTMENTS"), as applicable. (b) As soon as reasonably practicable, but in no event later than [75] days following the Effective Date, Retrocedant shall prepare and deliver to Retrocessionaire an accounting, , including the calculation of all Loss Reserve Adjustments as provided for herein (the "PROPOSED LOSS RESERVE ACCOUNTING") of all loss and loss adjustment expense reserves and ceding commission reserves relating to the Reinsurance Contract Contracts for the coverage period under this Agreement, all as of the Effective DateDate , determined in accordance with statutory accounting principles on a basis consistent in all material respects with the methods, principles, practices and policies employed in the preparation and presentation of Retrocedant's annual statutory financial statement as of December 31, 2001 as filed with the Vermont Minnesota Department of Insurance Commerce and as submitted to The St. Xxxx, adjusted to reflect the Loss Reserve Adjustments, as applicable (the "FINAL SECTION A PREMIUM"). In the event the Final Section A Premium is greater than the Initial Section A Premium, Retrocedant shall promptly pay to the account of Retrocessionaire the difference plus interest on such amount at the Applicable Rate (as defined below) from and including the Effective Date to and including the date of such payment. In the event the Initial Section A Premium is greater than the Final Section A Premium, Retrocessionaire shall promptly pay to the account of Retrocedant the difference plus interest on such amount at the Applicable Rate from and including the Effective Date to and including the date of such payment. (c) Notwithstanding the foregoing, the parties agree that all gross estimated premiums written prior to the Effective Date and earned but not yet billed ("EBUB", and also referred to as "estimated premiums receivable" or "EBNR") as of the Effective Time and relating to the Reinsurance Contracts, as determined in accordance with Retrocedant's customary practices and procedures and as submitted to The St. Xxxx, shall be allocated to Retrocedant. All payments received after the Effective Time in respect of EBUB as of the Effective Time shall be retained by Retrocedant, and all rights to collect such amounts shall be retained by Retrocedant. Any changes made on or after the Effective Time as to the the estimate of EBUB as of the Effective Time shall be for the account of Retrocessionaire.

SECTION A COVERAGE -- PREMIUM. (a) On the Effective Date, in respect of the Section A Coverage, Retrocedant shall pay to the account of Retrocessionaire an amount (the "INITIAL SECTION A PREMIUM") equal to one hundred percent (100%) of the carrying value on the books of Retrocedant as of June 30, 2002, of the aggregate of all loss and loss adjustment expense and ceding commission reserves relating to the Reinsurance Contract Contracts for the coverage period under this Agreement, determined in accordance with statutory accounting principles on a basis consistent in all material respects with the methods, principles, practices and policies employed in the preparation and presentation of Retrocedant's annual statutory financial statement as of December 31, 2001 as filed with the Vermont Department of Insurance and as submitted to The St. Xxxx, and subject to the adjustments as set forth on Exhibit A hereto (the "LOSS RESERVE ADJUSTMENTS"), as applicable. (b) As soon as reasonably practicable, but in no event later than [75] days following the Effective Date, Retrocedant shall prepare and deliver to Retrocessionaire an accounting, , including the calculation of all Loss Reserve Adjustments as provided for herein (the "PROPOSED LOSS RESERVE ACCOUNTING") of all loss and loss adjustment expense reserves and ceding commission reserves relating to the Reinsurance Contract Contracts for the coverage period under this Agreement, all as of the Effective DateDate , determined in accordance with statutory accounting principles on a basis consistent in all material respects with the methods, principles, practices and policies employed in the preparation and presentation of Retrocedant's annual statutory financial statement as of December 31, 2001 as filed with the Vermont Department of Insurance and as submitted to The St. Xxxx, adjusted to reflect the Loss Reserve Adjustments, as applicable (the "FINAL SECTION A PREMIUM"). In the event the Final Section A Premium is greater than the Initial Section A Premium, Retrocedant shall promptly pay to the account of Retrocessionaire the difference plus interest on such amount at the Applicable Rate (as defined below) from and including the Effective Date to and including the date of such payment. In the event the Initial Section A Premium is greater than the Final Section A Premium, Retrocessionaire shall promptly pay to the account of Retrocedant the difference plus interest on such amount at the Applicable Rate from and including the Effective Date to and including the date of such payment. (c) Notwithstanding the foregoing, the parties agree that all gross estimated premiums written prior to the Effective Date and earned but not yet billed ("EBUB", and also referred to as "estimated premiums receivable" or "EBNR") as of the Effective Time and relating to the Reinsurance Contracts, as determined in accordance with Retrocedant's customary practices and procedures and as submitted to The St. Xxxx, shall be allocated to Retrocedant. All payments received after the Effective Time in respect of EBUB as of the Effective Time shall be retained by Retrocedant, and all rights to collect such amounts shall be retained by Retrocedant. Any changes made on or after the Effective Time as to the the estimate of EBUB as of the Effective Time shall be for the account of Retrocessionaire.

SECTION A COVERAGE -- PREMIUM. (a) On the Effective Date, in respect of the Section A Coverage, Retrocedant shall pay to the account of Retrocessionaire an amount (the "INITIAL SECTION A PREMIUM") equal to one hundred percent (100%) of the carrying value on the books of Retrocedant as of June 30, 2002, of the aggregate of all loss and loss adjustment expense and ceding commission reserves relating to the Reinsurance Contract for the coverage period under this Agreement, determined in accordance with statutory accounting principles on a basis consistent in all material respects with the methods, principles, practices and policies employed in the preparation and presentation of Retrocedant's annual statutory financial statement as of December 31, 2001 as filed with the Vermont Minnesota Department of Insurance and as submitted to The St. Xxxx, and subject to the adjustments as set forth on Exhibit A B hereto (the "LOSS RESERVE ADJUSTMENTS"), as applicable. (b) As soon as reasonably practicable, but in no event later than [75] days following the Effective Date, Retrocedant shall prepare and deliver to Retrocessionaire an accounting, , including the calculation of all Loss Reserve Adjustments as provided for herein (the "PROPOSED LOSS RESERVE ACCOUNTING") of all loss and loss adjustment expense reserves and ceding commission reserves relating to the Reinsurance Contract for the coverage period under this Agreement, all as of the Effective DateDate , determined in accordance with statutory accounting principles on a basis consistent in all material respects with the methods, principles, practices and policies employed in the preparation and presentation of Retrocedant's annual statutory financial statement as of December 31, 2001 as filed with the Vermont Minnesota Department of Insurance and as submitted to The St. Xxxx, adjusted to reflect the Loss Reserve Adjustments, as applicable (the "FINAL SECTION A PREMIUM"). In the event the Final Section A Premium is greater than the Initial Section A Premium, Retrocedant shall promptly pay to the account of Retrocessionaire the difference plus interest on such amount at the Applicable Rate (as defined below) from and including the Effective Date to and including the date of such payment. In the event the Initial Section A Premium is greater than the Final Section A Premium, Retrocessionaire shall promptly pay to the account of Retrocedant the difference plus interest on such amount at the Applicable Rate from and including the Effective Date to and including the date of such payment. (c) Notwithstanding the foregoing, the parties agree that all gross estimated premiums written prior to the Effective Date and earned but not yet billed ("EBUB", and also referred to as "estimated premiums receivable" or "EBNR") as of the Effective Time and relating to the Reinsurance ContractsContract, as determined in accordance with Retrocedant's customary practices and procedures and as submitted to The St. Xxxx, shall be allocated to Retrocedant. All payments received after the Effective Time in respect of EBUB as of the Effective Time shall be retained by Retrocedant, and all rights to collect such amounts shall be retained by Retrocedant. Any changes made on or after the Effective Time as to the the estimate of EBUB as of the Effective Time shall be for the account of Retrocessionaire.

SECTION A COVERAGE -- PREMIUM. (a) On the Effective Date, in respect of the Section A Coverage, Retrocedant shall pay to the account of Retrocessionaire an amount (the "INITIAL SECTION A PREMIUM") equal to one hundred percent (100%) of the carrying value on the books of Retrocedant as of June 30, 2002, of the aggregate of all loss and loss adjustment expense and ceding commission reserves relating to the Reinsurance Contract Contracts for the coverage period under this Agreement, determined in accordance with statutory accounting principles on a basis consistent in all material respects with the methods, principles, practices and policies employed in the preparation and presentation of Retrocedant's annual statutory financial statement as of December 31, 2001 as filed with the Vermont Minnesota Department of Insurance Commerce and as submitted to The St. Xxxx, and subject to the adjustments as set forth on Exhibit A B hereto (the "LOSS RESERVE ADJUSTMENTS"), as applicable. (b) As soon as reasonably practicable, but in no event later than [75] days following the Effective Date, Retrocedant shall prepare and deliver to Retrocessionaire an accounting, , accounting including the calculation of all Loss Reserve Adjustments as provided for herein (the "PROPOSED LOSS RESERVE ACCOUNTING") of all loss and loss adjustment expense reserves and ceding commission reserves relating to the Reinsurance Contract Contracts for the coverage period under this Agreement, all as of the Effective Date, determined in accordance with statutory accounting principles on a basis consistent in all material respects with the methods, principles, practices and policies employed in the preparation and presentation of Retrocedant's annual statutory financial statement as of December 31, 2001 as filed with the Vermont Minnesota Department of Insurance Commerce and as submitted to The St. Xxxx, adjusted to reflect the Loss Reserve Adjustments, as applicable (the "FINAL SECTION A PREMIUM"). In the event the Final Section A Premium is greater than the Initial Section A Premium, Retrocedant shall promptly pay to the account of Retrocessionaire the difference plus interest on such amount at the Applicable Rate (as defined below) from and including the Effective Date to and including the date of such payment. In the event the Initial Section A Premium is greater than the Final Section A Premium, Retrocessionaire shall promptly pay to the account of Retrocedant the difference plus interest on such amount at the Applicable Rate from and including the Effective Date to and including the date of such payment. (c) Notwithstanding the foregoing, the parties agree that all gross estimated premiums written prior to the Effective Date and earned but not yet billed ("EBUB", and also referred to as "estimated premiums receivable" or "EBNR") as of the Effective Time and relating to the Reinsurance Contracts, as determined in accordance with Retrocedant's customary practices and procedures and as submitted to The St. Xxxx, shall be allocated to Retrocedant. All payments received after the Effective Time in respect of EBUB as of the Effective Time shall be retained by Retrocedant, and all rights to collect such amounts shall be retained by Retrocedant. Any changes made on or after the Effective Time as to the the estimate of EBUB as of the Effective Time shall be for the account of Retrocessionaire.

SECTION A COVERAGE -- PREMIUM. (a) On the Effective Date, in respect of the Section A Coverage, Retrocedant shall pay to the account of Retrocessionaire an amount (the "INITIAL SECTION A PREMIUM") equal to one hundred percent (100%) of the carrying value on the books of Retrocedant as of June 30, 2002, of the aggregate of all loss and loss adjustment expense and ceding commission reserves relating to the Reinsurance Contract for the coverage period under this Agreement, determined in accordance with statutory accounting principles on a basis consistent in all material respects with the methods, principles, practices and policies employed in the preparation and presentation of Retrocedant's annual statutory financial statement as of December 31, 2001 as filed with the Vermont Department of Insurance and as submitted to The St. Xxxx, and subject to the adjustments as set forth on Exhibit A hereto (the "LOSS RESERVE ADJUSTMENTS"), as applicable. (b) As soon as reasonably practicable, but in no event later than [75] days following the Effective Date, Retrocedant shall prepare and deliver to Retrocessionaire an accounting, , including the calculation of all Loss Reserve Adjustments as provided for herein (the "PROPOSED LOSS RESERVE ACCOUNTING") of all loss and loss adjustment expense reserves and ceding commission reserves relating to the Reinsurance Contract for the coverage period under this Agreement, all as of the Effective Date, determined in accordance with statutory accounting principles on a basis consistent in all material respects with the methods, principles, practices and policies employed in the preparation and presentation of Retrocedant's annual statutory financial statement as of December 31, 2001 as filed with the Vermont Department of Insurance and as submitted to The St. Xxxx, adjusted to reflect the Loss Reserve Adjustments, as applicable (the "FINAL SECTION A PREMIUM"). In the event the Final Section A Premium is greater than the Initial Section A Premium, Retrocedant shall promptly pay to the account of Retrocessionaire the difference plus interest on such amount at the Applicable Rate (as defined below) from and including the Effective Date to and including the date of such payment. In the event the Initial Section A Premium is greater than the Final Section A Premium, Retrocessionaire shall promptly pay to the account of Retrocedant the difference plus interest on such amount at the Applicable Rate from and including the Effective Date to and including the date of such payment. (c) Notwithstanding the foregoing, the parties agree that all gross estimated premiums written prior to the Effective Date and earned but not yet billed ("EBUB", and also referred to as "estimated premiums receivable" or "EBNR") as of the Effective Time and relating to the Reinsurance ContractsContract, as determined in accordance with Retrocedant's customary practices and procedures and as submitted to The St. Xxxx, shall be allocated to Retrocedant. All payments received after the Effective Time in respect of EBUB as of the Effective Time shall be retained by Retrocedant, and all rights to collect such amounts shall be retained by Retrocedant. Any changes made on or after the Effective Time as to the the estimate of EBUB as of the Effective Time shall be for the account of Retrocessionaire.

SECTION A COVERAGE -- PREMIUM. (a) On the Effective Date, in respect of the Section A Coverage, Retrocedant shall pay to the account of Retrocessionaire an amount (the "INITIAL SECTION A PREMIUM") equal to one hundred percent (100%) of the carrying value on the books of Retrocedant as of June 30, 2002, of the aggregate of all loss and loss adjustment expense and ceding commission reserves relating to the Reinsurance Contract for the coverage period under this Agreement, determined in accordance with statutory accounting principles on a basis consistent in all material respects with the methods, principles, practices and policies employed in the preparation and presentation of Retrocedant's annual statutory financial statement as of December 31, 2001 as filed with the Vermont Minnesota Department of Insurance and as submitted to The St. Xxxx, and subject to the adjustments as set forth on Exhibit A hereto (the "LOSS RESERVE ADJUSTMENTS"), as applicable. (b) As soon as reasonably practicable, but in no event later than [75] days following the Effective Date, Retrocedant shall prepare and deliver to Retrocessionaire an accounting, , including the calculation of all Loss Reserve Adjustments as provided for herein (the "PROPOSED LOSS RESERVE ACCOUNTING") of all loss and loss adjustment expense reserves and ceding commission reserves relating to the Reinsurance Contract for the coverage period under this Agreement, all as of the Effective Date, determined in accordance with statutory accounting principles on a basis consistent in all material respects with the methods, principles, practices and policies employed in the preparation and presentation of Retrocedant's annual statutory financial statement as of December 31, 2001 as filed with the Vermont Minnesota Department of Insurance and as submitted to The St. Xxxx, adjusted to reflect the Loss Reserve Adjustments, as applicable (the "FINAL SECTION A PREMIUM"). In the event the Final Section A Premium is greater than the Initial Section A Premium, Retrocedant shall promptly pay to the account of Retrocessionaire the difference plus interest on such amount at the Applicable Rate (as defined below) from and including the Effective Date to and including the date of such payment. In the event the Initial Section A Premium is greater than the Final Section A Premium, Retrocessionaire shall promptly pay to the account of Retrocedant the difference plus interest on such amount at the Applicable Rate from and including the Effective Date to and including the date of such payment. (c) Notwithstanding the foregoing, the parties agree that all gross estimated premiums written prior to the Effective Date and earned but not yet billed ("EBUB", and also referred to as "estimated premiums receivable" or "EBNR") as of the Effective Time and relating to the Reinsurance ContractsContract, as determined in accordance with Retrocedant's customary practices and procedures and as submitted to The St. Xxxx, shall be allocated to Retrocedant. All payments received after the Effective Time in respect of EBUB as of the Effective Time shall be retained by Retrocedant, and all rights to collect such amounts shall be retained by Retrocedant. Any changes made on or after the Effective Time as to the the estimate of EBUB as of the Effective Time shall be for the account of Retrocessionaire.

SECTION A COVERAGE -- PREMIUM. (a) On the Effective Date, in respect of the Section A Coverage, Retrocedant shall pay to the account of Retrocessionaire an amount (the "INITIAL SECTION A PREMIUM") equal to one hundred percent (100%) of the carrying value on the books of Retrocedant as of June 30, 2002, of the aggregate of all loss and loss adjustment expense and ceding commission reserves relating to the Reinsurance Contract Contracts for the coverage period under this Agreement, determined in accordance with statutory accounting principles on a basis consistent in all material respects with the methods, principles, practices and policies employed in the preparation and presentation of Retrocedant's annual statutory financial statement as of December 31, 2001 as filed with the Vermont Minnesota Department of Insurance and Commerce as submitted to The St. Xxxx, and subject to the adjustments as set forth on Exhibit A B hereto (the "LOSS RESERVE ADJUSTMENTS"), as applicable. (b) As soon as reasonably practicable, but in no event later than [75] days following the Effective Date, Retrocedant shall prepare and deliver to Retrocessionaire an accounting, , including the calculation of all Loss Reserve Adjustments as provided for herein (the "PROPOSED LOSS RESERVE ACCOUNTING") of all loss and loss adjustment expense reserves and ceding commission reserves relating to the Reinsurance Contract Contracts for the coverage period under this Agreement, all as of the Effective Date, determined in accordance with statutory accounting principles on a basis consistent in all material respects with the methods, principles, practices and policies employed in the preparation and presentation of Retrocedant's annual statutory financial statement as of December 31, 2001 as filed with the Vermont Minnesota Department of Insurance and Commerce as submitted to The St. Xxxx, adjusted to reflect the Loss Reserve Adjustments, as applicable (the "FINAL SECTION A PREMIUM"). In the event the Final Section A Premium is greater than the Initial Section A Premium, Retrocedant shall promptly pay to the account of Retrocessionaire the difference plus interest on such amount at the Applicable Rate (as defined below) from and including the Effective Date to and including the date of such payment. In the event the Initial Section A Premium is greater than the Final Section A Premium, Retrocessionaire shall promptly pay to the account of Retrocedant the difference plus interest on such amount at the Applicable Rate from and including the Effective Date to and including the date of such payment. (c) Notwithstanding the foregoing, the parties agree that all gross estimated premiums written prior to the Effective Date and earned but not yet billed ("EBUB", and also referred to as "estimated premiums receivable" or "EBNR") as of the Effective Time and relating to the Reinsurance Contracts, as determined in accordance with Retrocedant's customary practices and procedures and as submitted to The St. Xxxx, shall be allocated to Retrocedant. All payments received after the Effective Time in respect of EBUB as of the Effective Time shall be retained by Retrocedant, and all rights to collect such amounts shall be retained by Retrocedant. Any changes made on or after the Effective Time as to the the estimate of EBUB as of the Effective Time shall be for the account of Retrocessionaire.

SECTION A COVERAGE -- PREMIUM. (a) On the Effective Date, in respect of the Section A Coverage, Retrocedant shall pay to the account of Retrocessionaire an amount (the "INITIAL SECTION A PREMIUM") equal to one hundred percent (100%) of the carrying value on the books of Retrocedant as of June 30, 2002, of the aggregate of all loss and loss adjustment expense and ceding commission reserves relating to the Reinsurance Contract Contracts for the coverage period under this Agreement, determined in accordance with statutory accounting principles on a basis consistent in all material respects with the methods, principles, practices and policies employed in the preparation and presentation of Retrocedant's annual statutory financial statement as of December 31, 2001 as filed with the Vermont Minnesota Department of Insurance and as submitted to The St. Xxxx, and subject to the adjustments as set forth on Exhibit A B hereto (the "LOSS RESERVE ADJUSTMENTS"), as applicable. (b) As soon as reasonably practicable, but in no event later than [75] days following the Effective Date, Retrocedant shall prepare and deliver to Retrocessionaire an accounting, , including the calculation of all Loss Reserve Adjustments as provided for herein (the "PROPOSED LOSS RESERVE ACCOUNTING") of all loss and loss adjustment expense reserves and ceding commission reserves relating to the Reinsurance Contract Contracts for the coverage period under this Agreement, all as of the Effective DateDate , determined in accordance with statutory accounting principles on a basis consistent in all material respects with the methods, principles, practices and policies employed in the preparation and presentation of Retrocedant's annual statutory financial statement as of December 31, 2001 as filed with the Vermont Minnesota Department of Insurance and as submitted to The St. Xxxx, adjusted to reflect the Loss Reserve Adjustments, as applicable (the "FINAL SECTION A PREMIUM"). In the event the Final Section A Premium is greater than the Initial Section A Premium, Retrocedant shall promptly pay to the account of Retrocessionaire the difference plus interest on such amount at the Applicable Rate (as defined below) from and including the Effective Date to and including the date of such payment. In the event the Initial Section A Premium is greater than the Final Section A Premium, Retrocessionaire shall promptly pay to the account of Retrocedant the difference plus interest on such amount at the Applicable Rate from and including the Effective Date to and including the date of such payment. (c) Notwithstanding the foregoing, the parties agree that all gross estimated premiums written prior to the Effective Date and earned but not yet billed ("EBUB", and also referred to as "estimated premiums receivable" or "EBNR") as of the Effective Time and relating to the Reinsurance Contracts, as determined in accordance with Retrocedant's customary practices and procedures and as submitted to The St. Xxxx, shall be allocated to Retrocedant. All payments received after the Effective Time in respect of EBUB as of the Effective Time shall be retained by Retrocedant, and all rights to collect such amounts shall be retained by Retrocedant. Any changes made on or after the Effective Time as to the the estimate of EBUB as of the Effective Time shall be for the account of Retrocessionaire.

SECTION A COVERAGE -- PREMIUM. (a) On the Effective Date, in respect of the Section A Coverage, Retrocedant shall pay to the account of Retrocessionaire an amount (the "INITIAL SECTION A PREMIUM") equal to one hundred percent (100%) of the carrying value on the books of Retrocedant as of June 30, 2002, of the aggregate of all loss and loss adjustment expense and ceding commission reserves relating to the Reinsurance Contract Contracts for the coverage period under this Agreement, determined in accordance with statutory accounting principles on a basis consistent in all material respects with the methods, principles, practices and policies employed in the preparation and presentation of Retrocedant's annual statutory financial statement as of December 31, 2001 as filed with the Vermont Minnesota Department of Insurance Commerce and as submitted to The St. Xxxx, and subject to the adjustments as set forth on Exhibit A B hereto (the "LOSS RESERVE ADJUSTMENTS"), as applicable. (b) As soon as reasonably practicable, but in no event later than [75] days following the Effective Date, Retrocedant shall prepare and deliver to Retrocessionaire an accounting, , including the calculation of all Loss Reserve Adjustments as provided for herein (the "PROPOSED LOSS RESERVE ACCOUNTING") of all loss and loss adjustment expense reserves and ceding commission reserves relating to the Reinsurance Contract Contracts for the coverage period under this Agreement, all as of the Effective Date, determined in accordance with statutory accounting principles on a basis consistent in all material respects with the methods, principles, practices and policies employed in the preparation and presentation of Retrocedant's annual statutory financial statement as of December 31, 2001 as filed with the Vermont Minnesota Department of Insurance Commerce and as submitted to The St. Xxxx, adjusted to reflect the Loss Reserve Adjustments, as applicable Xxxx (the "FINAL SECTION A PREMIUM"). In the event the Final Section A Premium is greater than the Initial Section A Premium, Retrocedant shall promptly pay to the account of Retrocessionaire the difference plus interest on such amount at the Applicable Rate (as defined below) from and including the Effective Date to and including the date of such payment. In the event the Initial Section A Premium is greater than the Final Section A Premium, Retrocessionaire shall promptly pay to the account of Retrocedant the difference plus interest on such amount at the Applicable Rate from and including the Effective Date to and including the date of such payment. (c) Notwithstanding the foregoing, the parties agree that all gross estimated premiums written prior to the Effective Date and earned but not yet billed ("EBUB", and also referred to as "estimated premiums receivable" or "EBNR") as of the Effective Time and relating to the Reinsurance Contracts, as determined in accordance with Retrocedant's customary practices and procedures and as submitted to The St. Xxxx, shall be allocated to Retrocedant. All payments received after the Effective Time in respect of EBUB as of the Effective Time shall be retained by Retrocedant, and all rights to collect such amounts shall be retained by Retrocedant. Any changes made on or after the Effective Time as to the the estimate of EBUB as of the Effective Time shall be for the account of Retrocessionaire.