Common use of SHARE PARTICIPATION Clause in Contracts

SHARE PARTICIPATION. The aggregate quota share cession shall be at the option of the Company and subject to a maximum of 75% for the year 2002. However, the maximum cession will be limited to $60,000,000 of written premium. In the event the quota share percent selected by the Company produces more than $60,000,000 for the calendar year, the dollar amount of written premium ceded shall be reduced to $60,000,000. This limit can be increased by mutual agreement between the Reinsurer and the Company. The Company shall notify the Reinsurer prior to the last day of the calendar quarter of the quota share percent for that quarter. It is agreed that the cession for any one quarter, shall not exceed 40% of the total cession for the calendar year. In the event the declared percent cession for a calendar quarter produces premiums in excess of 40% of the premium ceded for the calendar year the cessions for that quarter shall be adjusted to the dollar amount that would equal 40% of the premium ceded for the year. The Reinsurer's liability for aggregate losses, including allocated loss adjustment expenses (and unallocated loss adjustment expenses where applicable under REPORTS AND ACCOUNTING), shall be limited to 97% of earned premium ceded for all business from January 1st, 2002 to the calculation date.

SHARE PARTICIPATION. The aggregate quota share cession shall be at the option of the Company and subject to a maximum of 7560% for the year 2002. However, the maximum cession will be limited to $60,000,000 10,000,000 of written premium. In the event the quota share percent selected by the Company produces more than $60,000,000 10,000,000 for the calendar year, the dollar amount of written premium ceded shall be reduced to $60,000,00010,000,000. This limit can be increased by mutual agreement between the Reinsurer and the Company. The Company shall notify the Reinsurer prior to the last day of the calendar quarter of the quota share percent for that quarter. It is agreed that the cession for any one quarter, shall not exceed 40% of the total cession for the calendar year. In the event the declared percent cession for a calendar quarter produces premiums in excess of 40% of the premium ceded for the calendar year the cessions for that quarter shall be adjusted to the dollar amount that would equal 40% of the premium ceded for the year. The Reinsurer's liability for aggregate losses, including allocated loss adjustment expenses (and unallocated loss adjustment expenses where applicable under REPORTS AND ACCOUNTING), shall be limited to 97% of earned premium ceded for all business from January 1st, 2002 to the calculation date.