Common use of SECTION B COVERAGE-- PREMIUMS Clause in Contracts

SECTION B COVERAGE-- PREMIUMS. (a) On the Effective Date, in respect of the Section B Coverage, Retrocedant shall pay to the account of Retrocessionaire an amount (the "INITIAL SECTION B PREMIUM") equal to the carrying value on the books of Retrocedant as of June 30, 2002 of one hundred percent (100%) of all unearned premium reserves relating to the Reinsurance 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 Minnesota Department of Commerce and as submitted to The St. Xxxx, less the applicable Ceding Commission, as defined below, and with respect to all Reinsurance Contracts, one hundred percent (100%) of all gross premiums written on or after the Effective Time, net of premium returns, allowances and cancellations net of any applicable Ceding Commission, provided, however, that all premiums written arising in respect of a Loss Occurrence (as such term is defined in the Reinsurance Contract), including reinstatement premiums, loss share premiums and penalty premiums [OTHER], shall be for the account of Retrocedant. (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 (the "PROPOSED PREMIUM RESERVE ACCOUNTING", together with the Proposed Loss Reserve Accounting, the "PROPOSED Accounting") of all unearned premium reserves relating to the Reinsurance Contracts for the coverage period under this Agreement, 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 Minnesota Department of Commerce and as submitted to The St. Xxxx, relating to the Reinsurance Contracts, net of the applicable Ceding Commission, all as of the Effective Date (the "FINAL SECTION B PREMIUM"). In the event the Final Section B Premium is greater than the Initial Section B Premium, Retrocedant shall promptly pay to the account of Retrocessionaire 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. In the event the Initial Section B Premium is greater than the Final Section B 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 B COVERAGE-- PREMIUMS. (a) On the Effective Closing Date, in respect of the Section B Coverage, Retrocedant shall pay to the account of Retrocessionaire an amount (the "INITIAL SECTION B PREMIUM") equal to the carrying value on the books of Retrocedant as of June 30, 2002 of one hundred percent (100%) of all unearned premium reserves relating to the Reinsurance 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 Minnesota Department of Commerce and as submitted to The St. Xxxx, less the applicable Ceding Commission, as defined below, and with respect to all Reinsurance Contracts, one hundred percent (100%) of all gross premiums written on or after the Effective Time, net of premium returns, allowances and cancellations net of any applicable Ceding Commission, provided, however, that all premiums written arising in respect of a Loss Occurrence (as such term is defined in the Reinsurance Contract), including reinstatement premiums, loss share premiums and penalty premiums [OTHER], shall be for the account of Retrocedant. (b) As soon as reasonably practicable, but in no event later than [75] days following the Effective Closing Date, Retrocedant shall prepare and deliver to Retrocessionaire an accounting (the "PROPOSED PREMIUM RESERVE ACCOUNTING", together with the Proposed Loss Reserve Accounting, the "PROPOSED Accounting") of all unearned premium reserves relating to the Reinsurance Contracts for the coverage period under this Agreement, 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 Minnesota Department of Commerce and as submitted to The St. Xxxx, relating to the Reinsurance ContractsContracts for the coverage period under this Agreement, net of the applicable Ceding Commission, all as of the Effective Closing Date (the "FINAL SECTION B PREMIUM"). In the event the Final Section B Premium is greater than the Initial Section B Premium, Retrocedant shall promptly pay to the account of Retrocessionaire the difference plus interest on such amount at the Applicable Rate from and including the Effective Closing Date to and including the date of such payment. In the event the Initial Section B Premium is greater than the Final Section B 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 Closing 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 B COVERAGE-- PREMIUMS. (a) On the Effective Closing Date, in respect of the Section B Coverage, Retrocedant shall pay to the account of Retrocessionaire an amount (the "INITIAL SECTION B PREMIUM") equal to the carrying value on the books of Retrocedant as of June 30, 2002 of one hundred percent (100%) of all unearned premium reserves relating to the Reinsurance Contracts 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 Minnesota Vermont Department of Commerce Insurance and as submitted to The St. Xxxx, less the applicable Ceding Commission, as defined below, and with respect to all Reinsurance Contracts, one hundred percent (100%) of all gross premiums written on or after the Effective Time, net of premium returns, allowances and cancellations net of and any applicable Ceding Commission, provided, however, that all premiums written arising in respect of a Loss Occurrence (as such term is defined in the Reinsurance Contract), including reinstatement premiums, loss share premiums and penalty premiums [OTHER], shall be for the account of Retrocedant. (b) As soon as reasonably practicable, but in no event later than [75] days following the Effective Closing Date, Retrocedant shall prepare and deliver to Retrocessionaire an accounting (the "PROPOSED PREMIUM RESERVE ACCOUNTING", together with the Proposed Loss Reserve Accounting, the "PROPOSED AccountingACCOUNTING") of all unearned premium reserves relating to the Reinsurance Contracts Contract for the coverage period under this Agreement, 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 Minnesota Vermont Department of Commerce Insurance and as submitted to The St. Xxxx, relating to the Reinsurance ContractsContract for the coverage period under this Agreement, net of the applicable Ceding Commission, all as of the Effective Closing Date (the "FINAL SECTION B PREMIUM"). In the event the Final Section B Premium is greater than the Initial Section B Premium, Retrocedant shall promptly pay to the account of Retrocessionaire the difference plus interest on such amount at the Applicable Rate from and including the Effective Closing Date to and including the date of such payment. In the event the Initial Section B Premium is greater than the Final Section B 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 Closing 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 B COVERAGE-- PREMIUMS. (a) On the Effective Date, in respect of the Section B Coverage, Retrocedant shall pay to the account of Retrocessionaire an amount (the "INITIAL SECTION B PREMIUM") equal to the carrying value on the books of Retrocedant as of June 30, 2002 of one hundred percent (100%) of all unearned premium reserves reserves, relating to the Reinsurance 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 Minnesota Department of Commerce Insurance and as submitted to The St. Xxxx, less the applicable Ceding Commission, as defined below, and with respect to all Reinsurance Contracts, one hundred percent (100%) of all gross premiums written on or after the Effective Time, net of premium returns, allowances and cancellations and net of any applicable Ceding Commission, ; provided, however, that all any premiums written arising in respect of payable that result from a Loss Occurrence (as such term is defined in the Reinsurance Contract), including reinstatement premiumsbut not limited to Scheduled Premiums, loss share premiums Reinstatement Premiums, Loss Share Premiums and penalty premiums [OTHER], shall Penalty Premiums (all as defined in the Reinsurance Contract) will be for ceded to the account of RetrocedantReinsurer. (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 (the "PROPOSED PREMIUM RESERVE ACCOUNTING", together with the Proposed Loss Reserve Accounting, the "PROPOSED AccountingACCOUNTING") of all unearned premium reserves reserves, relating to the Reinsurance Contracts for the coverage period under this Agreement, 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 Minnesota Department of Commerce Insurance and as submitted to The St. Xxxx, relating to the Reinsurance Contracts, net of the applicable Ceding Commission, all as of the Effective Date (the "FINAL SECTION B PREMIUM"). In the event the Final Section B Premium is greater than the Initial Section B Premium, Retrocedant shall promptly pay to the account of Retrocessionaire 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. In the event the Initial Section B Premium is greater than the Final Section B 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 B COVERAGE-- PREMIUMS. (a) On the Effective Date, in respect of the Section B Coverage, Retrocedant shall pay to the account of Retrocessionaire an amount (the "INITIAL SECTION B PREMIUMPremium") equal to the carrying value on the books of Retrocedant as of June 30, 2002 of one hundred percent (100%) of all unearned premium reserves reserves, relating to the Reinsurance Contracts 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 Minnesota Department of Commerce Insurance and as submitted to The St. Xxxx, less the applicable Ceding Commission, as defined below, and with respect to all Reinsurance Contracts, one hundred percent (100%) of all gross premiums written on or after the Effective Time, net of premium returns, allowances and cancellations and net of any applicable Ceding Commission, provided, however, that all premiums written arising in respect of a Loss Occurrence (as such term is defined in the Reinsurance Contract), including reinstatement premiums, loss share premiums and penalty premiums [OTHER], shall be for the account of Retrocedant. (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 (the "PROPOSED PREMIUM RESERVE ACCOUNTING", together with the Proposed Loss Reserve Accounting, the "PROPOSED AccountingACCOUNTING") of all unearned premium reserves relating to the Reinsurance Contracts Contract for the coverage period under this Agreement, 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 Minnesota Department of Commerce Insurance and as submitted to The St. Xxxx, relating to the Reinsurance ContractsContract, net of the applicable Ceding Commission, all as of the Effective Date (the "FINAL SECTION B PREMIUM"). In the event the Final Section B Premium is greater than the Initial Section B Premium, Retrocedant shall promptly pay to the account of Retrocessionaire 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. In the event the Initial Section B Premium is greater than the Final Section B 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 B COVERAGE-- PREMIUMS. (a) On the Effective Date, in respect of the Section B Coverage, Retrocedant shall pay to the account of Retrocessionaire an amount (the "INITIAL SECTION B PREMIUM") equal to the carrying value on the books of Retrocedant as of June 30, 2002 of one hundred percent (100%) of all unearned premium reserves relating to the Reinsurance Contracts 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 Minnesota Department of Commerce Insurance and as submitted to The St. Xxxx, less the applicable Ceding Commission, as defined below, and with respect to all Reinsurance Contracts, one hundred percent (100%) of all gross premiums written on or after the Effective Time, net of premium returns, allowances and cancellations cancellations, and net of any applicable Ceding Commission, provided, however, that all premiums written arising in respect of a Loss Occurrence (as such term is defined in the Reinsurance Contract), including reinstatement premiums, loss share premiums and penalty premiums [OTHER], shall be for the account of Retrocedant. (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 (the "PROPOSED PREMIUM RESERVE ACCOUNTING", together with the Proposed Loss Reserve Accounting, the "PROPOSED AccountingACCOUNTING") of all unearned premium reserves relating to the Reinsurance Contracts Contract for the coverage period under this Agreement, 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 Minnesota Department of Commerce Insurance and as submitted to The St. Xxxx, relating to the Reinsurance ContractsContract, net of the applicable Ceding Commission, all as of the Effective Date (the "FINAL SECTION B PREMIUM"). In the event the Final Section B Premium is greater than the Initial Section B Premium, Retrocedant shall promptly pay to the account of Retrocessionaire 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. In the event the Initial Section B Premium is greater than the Final Section B 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 B COVERAGE-- PREMIUMS. (a) On the Effective Date, in respect of the Section B Coverage, Retrocedant shall pay to the account of Retrocessionaire an amount (the "INITIAL SECTION B PREMIUM") equal to the carrying value on the books of Retrocedant as of June 30, 2002 of one hundred percent (100%) of all unearned premium reserves relating to the Reinsurance 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 Minnesota Vermont Department of Commerce Insurance and as submitted to The St. Xxxx, less the applicable Ceding Commission, as defined below, and with respect to all Reinsurance Contracts, one hundred percent (100%) of all gross premiums written on or after the Effective Time, net of premium returns, allowances and cancellations cancellations, net of any applicable Ceding Commission, provided, however, that all premiums written arising in respect of a Loss Occurrence (as such term is defined in the Reinsurance Contract), including reinstatement premiums, loss share premiums and penalty premiums [OTHER], shall be for the account of Retrocedant. (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 (the "PROPOSED PREMIUM RESERVE ACCOUNTING", together with the Proposed Loss Reserve Accounting, the "PROPOSED Accounting") of all unearned premium reserves relating to the Reinsurance Contracts for the coverage period under this Agreement, 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 Minnesota Vermont Department of Commerce Insurance and as submitted to The St. Xxxx, relating to the Reinsurance ContractsContracts for the coverage period under this Agreement, net of the applicable Ceding Commission, all as of the Effective Date (the "FINAL SECTION B PREMIUM"). In the event the Final Section B Premium is greater than the Initial Section B Premium, Retrocedant shall promptly pay to the account of Retrocessionaire 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. In the event the Initial Section B Premium is greater than the Final Section B 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 B COVERAGE-- PREMIUMS. (a) On the Effective Closing Date, in respect of the Section B Coverage, Retrocedant shall pay to the account of Retrocessionaire an amount (the "INITIAL SECTION B PREMIUMPremium") equal to the carrying value on the books of Retrocedant as of June 30, 2002 of one hundred percent (100%) of all unearned premium reserves relating to the Reinsurance 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 Minnesota Department of Commerce and as submitted to The St. Xxxx, less the applicable Ceding Commission, as defined below, and with respect to all Reinsurance Contracts, one hundred percent (100%) of all gross premiums written on or after the Effective Time, net of premium returns, allowances and cancellations net of any applicable Ceding Commission, provided, however, that all premiums written arising in respect of a Loss Occurrence (as such term is defined in subject to the Reinsurance Contract), including reinstatement premiums, loss share premiums and penalty premiums [OTHER], shall be for the account of Retrocedantadjustments set forth below. (b) As soon as reasonably practicable, but in no event later than [75] days following the Effective Closing Date, Retrocedant shall prepare and deliver to Retrocessionaire an accounting (the "PROPOSED PREMIUM RESERVE ACCOUNTINGAccounting", together with the Proposed Loss Reserve Accounting, the "PROPOSED AccountingACCOUNTING") of all unearned premium reserves relating to the Reinsurance Contracts for the coverage period under this Agreement, 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 Minnesota Department of Commerce and as submitted to The St. Xxxx, relating to the Reinsurance ContractsContracts for the coverage period under this Agreement, net of the applicable Ceding Commission, all as of the Effective Closing Date as applicable (the "FINAL SECTION B PREMIUM"). In the event the Final Section B Premium is greater than the Initial Section B Premium, Retrocedant shall promptly pay to the account of Retrocessionaire the difference plus interest on such amount at the Applicable Rate from and including the Effective Closing Date to and including the date of such payment. In the event the Initial Section B Premium is greater than the Final Section B 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 Closing 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 B COVERAGE-- PREMIUMS. (a) On the Effective Date, in respect of the Section B Coverage, Retrocedant shall pay to the account of Retrocessionaire an amount (the "INITIAL SECTION B PREMIUM") equal to the carrying value on the books of Retrocedant as of June 30, 2002 of one hundred percent (100%) of all unearned premium reserves relating to the Reinsurance Contracts 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 Minnesota Vermont Department of Commerce Insurance and as submitted to The St. Xxxx, less the applicable Ceding Commission, as defined below, and with respect to all Reinsurance Contracts, one hundred percent (100%) of all gross premiums written on or after the Effective Time, net of premium returns, allowances and cancellations cancellations, and net of any applicable Ceding Commission, provided, however, that all premiums written arising in respect of a Loss Occurrence (as such term is defined in the Reinsurance Contract), including reinstatement premiums, loss share premiums and penalty premiums [OTHER], shall be for the account of Retrocedant. (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 (the "PROPOSED PREMIUM RESERVE ACCOUNTING", together with the Proposed Loss Reserve Accounting, the "PROPOSED AccountingACCOUNTING") of all unearned premium reserves relating to the Reinsurance Contracts Contract for the coverage period under this Agreement, 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 Minnesota Vermont Department of Commerce Insurance and as submitted to The St. Xxxx, relating to the Reinsurance ContractsContract for the coverage period under this Agreement, net of the applicable Ceding Commission, all as of the Effective Date (the "FINAL SECTION B PREMIUM"). In the event the Final Section B Premium is greater than the Initial Section B Premium, Retrocedant shall promptly pay to the account of Retrocessionaire 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. In the event the Initial Section B Premium is greater than the Final Section B 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 B COVERAGE-- PREMIUMS. (a) On the Effective Date, in respect of the Section B Coverage, Retrocedant shall pay to the account of Retrocessionaire an the amount of $[ ] (the "INITIAL SECTION B PREMIUM") ), which amount has been calculated to be equal to the carrying value on the books of Retrocedant as of June 30, 2002 of one hundred percent (100%) of all unearned premium reserves relating to the Reinsurance Contracts 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 Minnesota Department of Commerce Insurance and as submitted to The St. Xxxx, less the applicable Ceding Commission, as defined below, and with respect to all the Reinsurance ContractsContract, one hundred percent (100%) of all gross premiums written on or after the Effective Time, net of premium returns, allowances and cancellations and net of any applicable Ceding Commission, provided, however, that all premiums written arising in respect of a Loss Occurrence (as such term is defined in the Reinsurance Contract), including reinstatement premiums, loss share premiums and penalty premiums [OTHER], shall be for the account of Retrocedant. (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 (the "PROPOSED PREMIUM RESERVE ACCOUNTING"accounting, together with the Proposed Loss Reserve Accounting, the "PROPOSED AccountingACCOUNTING") of all unearned premium reserves relating to the Reinsurance Contracts Contract for the coverage period under this Agreement, 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 Minnesota Department of Commerce Insurance and as submitted to The St. Xxxx, relating to the Reinsurance ContractsContract, net of the applicable Ceding Commission, all as of the Effective Date (the "FINAL SECTION B PREMIUM"). In the event the Final Section B Premium is greater than the Initial Section B Premium, Retrocedant shall promptly pay to the account of Retrocessionaire 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. In the event the Initial Section B Premium is greater than the Final Section B 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 B COVERAGE-- PREMIUMS. (a) On the Effective Date, in respect of the Section B Coverage, Retrocedant shall pay to the account of Retrocessionaire an amount (the "INITIAL SECTION B PREMIUM") equal to the carrying value on the books of Retrocedant as of June 30, 2002 of one hundred percent (100%) of all unearned premium reserves relating to the Reinsurance 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 Minnesota Department of Commerce and as submitted to The St. Xxxx, less the applicable Ceding Commission, as defined below, and with respect to all Reinsurance Contracts, one hundred percent (100%) of all gross premiums written on or after the Effective Time, net of premium returns, allowances and cancellations net of any applicable Ceding Commission, provided, however, that all premiums written arising in respect of a Loss Occurrence (as such term is defined in the Reinsurance Contract), including reinstatement premiums, loss share premiums and penalty premiums [OTHER], shall be for the account of Retrocedant. (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 (the "PROPOSED PREMIUM RESERVE ACCOUNTING", together with the Proposed Loss Reserve Accounting, the "PROPOSED Accounting") of all unearned premium reserves relating to the Reinsurance Contracts for the coverage period under this Agreement, 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 Minnesota Department of Commerce and as submitted to The St. Xxxx, relating to the Reinsurance Contracts, net of the applicable Ceding Commission, all as of the Effective Date Commission (the "FINAL SECTION B PREMIUM"). In the event the Final Section B Premium is greater than the Initial Section B Premium, Retrocedant shall promptly pay to the account of Retrocessionaire 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. In the event the Initial Section B Premium is greater than the Final Section B 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.