Common use of Sliding Scale Commission Clause in Contracts

Sliding Scale Commission. A. The Reinsurer shall allow the Company a 27.00% provisional commission on all premiums ceded to the Reinsurer hereunder. The Company shall allow the Reinsurer return commission on return premiums at the same rate. B. The provisional commission allowed the Company shall be adjusted for each underwriting year in accordance with the provisions set forth herein. The adjusted commission shall be based upon the combined experiences of this Contract and those of the Non Standard Private Passenger Automobile Quota Share Reinsurance Contract, effective May 1, 2002, issued to Vesta Fire Insurance Corporation, Chicago, Illinois (hereinafter referred to as the “Companion Contract”). The adjusted commission rate shall be calculated as follows and be applied to premiums earned for the underwriting year under consideration: 1. If the ratio of losses incurred to premiums earned is 71.00% or greater, the adjusted commission rate for the underwriting year under consideration shall be 24.50%; 2. If the ratio of losses incurred to premiums earned is less than 71.00%, but not less than 66.00%, the adjusted commission rate for the underwriting year under consideration shall be 24.50%, plus 50.00% of the difference in percentage points between 71.00% and the actual rate of losses incurred to premiums earned; 3. If the ratio of losses incurred to premiums earned is less than 66.00%, but not less than 54.00%, the adjusted commission rate for the underwriting year under consideration shall be 27.00%, plus 75.00% of the difference in percentage points between 66.00% and the actual ratio of losses incurred to premiums earned; 4. If the ratio of losses incurred to premiums earned is 54.00% or less, the adjusted commission rate for the underwriting year under consideration shall be 36.00%. C. If the ratio of losses incurred to premiums earned for any underwriting year is greater than 71.00%, the difference in percentage points between the actual ratio of losses incurred to premiums earned and 71.00% shall be multiplied by premiums earned for the underwriting year and the product shall be carried forward to the next underwriting year as a debit to losses incurred. If the ratio of losses incurred to premiums earned for any underwriting year is less than 54.00%, the difference in percentage points between 54.00% and the actual ratio of losses incurred to premiums earned shall be multiplied by premiums earned for the underwriting year and the product shall be carried forward to the next adjustment period as a credit to losses incurred. D. Within 45 days after 24 months following the end of each underwriting year the Company shall calculate and report the adjusted commission on premiums earned for the underwriting year. If the adjusted commission on premiums earned is less than commissions previously allowed by the Reinsurer on premiums earned for the underwriting year, the Company shall remit the difference to the Reinsurer with its report. If the adjusted commission on premiums earned is greater than commissions previously allowed by the Reinsurer on premiums earned for the underwriting year, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company’s report.

Sliding Scale Commission. A. The Reinsurer shall allow the Company a 27.0029.0% provisional commission on all premiums ceded to the Reinsurer hereunder. The Company shall allow the Reinsurer return commission on return premiums at the same rate. B. The provisional commission allowed the Company shall be adjusted for each underwriting year periodically in accordance with the provisions set forth herein. The adjusted commission shall be based upon the combined experiences of this Contract and those of the Non Standard Private Passenger Automobile Quota Share Reinsurance Contract, effective May 1, 2002, issued to Vesta Fire Insurance Corporation, Chicago, Illinois (hereinafter referred to as the “Companion Contract”). The adjusted commission rate shall be calculated as follows and be applied to premiums earned for the underwriting contract year under consideration: 1. If the ratio of losses incurred to premiums earned is 71.0057.0% or greater, the adjusted commission rate for the underwriting contract year under consideration shall be 24.5023.0%; 2. If the ratio of losses incurred to premiums earned is less than 71.0057.0%, but not less than 66.0047.0%, the adjusted commission rate for the underwriting contract year under consideration shall be 24.5023.0%, plus 50.0050.0% of the difference in percentage points between 71.0057.0% and the actual rate ratio of losses incurred to premiums earned; 3. If the ratio of losses incurred to premiums earned is less than 66.0047.0%, but not less than 54.0037.0%, the adjusted commission rate for the underwriting contract year under consideration shall be 27.0028.0%, plus 75.00100% of the difference in percentage points between 66.0047.0% and the actual ratio of losses incurred to premiums earned; 4. If the ratio of losses incurred to premiums earned is 54.0037.0% or less, the adjusted commission rate for the underwriting contract year under consideration shall be 36.0038.0%. C. If the ratio of losses incurred to premiums earned for any underwriting contract year is greater than 71.0057.0%, the difference in percentage points between the actual ratio of losses incurred to premiums earned and 71.0057.0% shall be multiplied by premiums earned for the underwriting contract year and the product shall be carried forward to the next underwriting contract year as a debit to losses incurred. If the ratio of losses incurred to premiums earned for any underwriting contract year is less than 54.0037.0%, the difference in percentage points between 54.0037.0% and the actual ratio of losses incurred to premiums earned shall be multiplied by premiums earned for the underwriting contract year and the product shall be carried forward to the next adjustment period contract year as a credit to losses incurred. D. Within 45 days after 24 months following Except as provided in the end of each underwriting year next paragraph, the Company shall calculate and report the adjusted commission on premiums earned for within 45 days after the underwriting end of each contract year, and within 45 days after the end of each 12-month period thereafter until all losses subject hereto have been finally settled. Each such calculation shall be based on cumulative transactions hereunder from the beginning of the contract year through the date of adjustment, including, as respects losses incurred, any debit or credit from the preceding contract year. If the adjusted commission on premiums earned for the contract year as of the date of adjustment is less than commissions previously allowed by the Reinsurer on premiums earned for the underwriting same contract year, the Company shall remit the difference to the Reinsurer with its report. If the adjusted commission on premiums earned for the contract year as of the date of adjustment is greater than commissions previously allowed by the Reinsurer on premiums earned for the underwriting same contract year, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company’s report. E. As respects the final contract year, the Company shall calculate and report the adjusted commission on premiums earned within 45 days after the date of termination of this Contract or the termination of a Subscribing Reinsurer’s percentage share in this Contract, and within 45 days after the end of each 12-month period thereafter until all losses subject hereto have been finally settled. Each such calculation shall be based on cumulative transactions hereunder from the beginning of the final contract year through the date of adjustment, including, as respects losses incurred, any debit or credit from the preceding contract year. If the adjusted commission on premiums earned for the final contract year as of the date of adjustment is less than commissions previously allowed by the Reinsurer on premiums earned for the same contract year, the Company shall remit the difference to the Reinsurer with its report. If the adjusted commission on premiums earned for the final contract year as of the date of adjustment is greater than commissions previously allowed by the Reinsurer on premiums earned for the same contract year, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company’s report.

Sliding Scale Commission. A. The Reinsurer shall allow the Company a 27.0029.0% provisional commission on all premiums ceded to the Reinsurer hereunder. The Company shall allow the Reinsurer return commission on return premiums at the same rate. B. The provisional commission allowed the Company shall be adjusted for each underwriting year periodically in accordance with the provisions set forth herein. The adjusted commission shall be based upon the combined experiences of this Contract and those of the Non Standard Private Passenger Automobile Quota Share Reinsurance Contract, effective May 1, 2002, issued to Vesta Fire Insurance Corporation, Chicago, Illinois (hereinafter referred to as the “Companion Contract”). The adjusted commission rate shall be calculated as follows and be applied to premiums earned for the underwriting contract year under consideration: 1. If the ratio of losses incurred to premiums earned is 71.0057.0% or greater, the adjusted commission rate for the underwriting contract year under consideration shall be 24.5023.0%; 2. If the ratio of losses incurred to premiums earned is less than 71.0057.0%, but not less than 66.0047.0%, the adjusted commission rate for the underwriting contract year under consideration shall be 24.5023.0%, plus 50.0050.0% of the difference in percentage points between 71.0057.0% and the actual rate ratio of losses incurred to premiums earned; 3. If the ratio of losses incurred to premiums earned is less than 66.0047.0%, but not less than 54.0037.0%, the adjusted commission rate for the underwriting contract year under consideration shall be 27.0028.0%, plus 75.00100% of the difference in percentage points between 66.0047.0% and the actual ratio of losses incurred to premiums earned; 4. If the ratio of losses incurred to premiums earned is 54.0037.0% or less, the adjusted commission rate for the underwriting contract year under consideration shall be 36.0038.0%. C. If the ratio of losses incurred to premiums earned for any underwriting contract year is greater than 71.0057.0%, the difference in percentage points between the actual ratio of losses incurred to premiums earned and 71.0057.0% shall be multiplied by premiums earned for the underwriting contract year and the product shall be carried forward to the next underwriting contract year as a debit to losses incurred. If the ratio of losses incurred to premiums earned for any underwriting contract year is less than 54.0037.0%, the difference in percentage points between 54.0037.0% and the actual ratio of losses incurred to premiums earned shall be multiplied by premiums earned for the underwriting contract year and the product shall be carried forward to the next adjustment period contract year as a credit to losses incurred. D. Within 45 days after 24 months following Except as provided in the end of each underwriting year next paragraph, the Company shall calculate and report the adjusted commission on premiums earned for within 45 days after the underwriting end of each contract year, and within 45 days after the end of each 12-month period thereafter until all losses subject hereto have been finally settled. Each such calculation shall be based on cumulative transactions hereunder from the beginning of the contract year through the date of adjustment, including, as respects losses incurred, any debit or credit from the preceding contract year. If the adjusted commission on premiums earned for the contract year as of the date of adjustment is less than commissions previously allowed by the Reinsurer on premiums earned for the underwriting same contract year, the Company shall remit the difference to the Reinsurer with its report. If the adjusted commission on premiums earned for the contract year as of the date of adjustment is greater than commissions previously allowed by the Reinsurer on premiums earned for the underwriting same contract year, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company’s report. E. As respects the final contract year, the Company shall calculate and report the adjusted commission on premiums earned within 45 days after the date of termination of this Contract or the termination of a Subscribing Reinsurers percentage share in this Contract, and within 45 days after the end of each 12-month period thereafter until all losses subject hereto have been finally settled. Each such calculation shall be based on cumulative transactions hereunder from the beginning of the final contract year through the date of adjustment, including, as respects losses incurred, any debit or credit from the preceding contract year. If the adjusted commission on premiums earned for the final contract year as of the date of adjustment is less than commissions previously allowed by the Reinsurer on premiums earned for the same contract year, the Company shall remit the difference to the Reinsurer with its report. If the adjusted commission on premiums earned for the final contract year as of the date of adjustment is greater than commissions previously allowed by the Reinsurer on premiums earned for the same contract year, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company’s report.

Sliding Scale Commission. A. The Reinsurer shall allow the Company a 27.0028.0% provisional commission on all premiums (i.e., premium finance and direct xxxx premiums) ceded to the Reinsurer hereunder. The Company shall allow the Reinsurer return commission on return premiums at the same rate. B. The provisional commission allowed the Company shall be adjusted for each underwriting year in accordance with the provisions set forth herein. The adjusted commission shall be based upon the combined experiences of this Contract and those of the Non Standard Private Passenger Automobile Quota Share Reinsurance Contract, effective May 1, 2002, issued to Vesta Fire Insurance Corporation, Chicago, Illinois (hereinafter referred to as the “Companion Contract”). The adjusted commission rate shall be calculated as follows and be applied to premiums earned for the first and second underwriting years collectively, and independently for each underwriting year under considerationthereafter, as follows: 1. If the ratio of losses incurred to premiums earned is 71.0071.0% or greater, the adjusted commission rate for the underwriting contract year under consideration shall be 24.5024.0%; 2. If the ratio of losses incurred to premiums earned is less than 71.0071.0%, but not less than 66.0049.0%, the adjusted commission rate for the underwriting year under consideration shall be 24.5024.0%, plus 50.00% of the difference in percentage points between 71.0071.0% and the actual rate ratio of losses incurred to premiums earned; 3. If the ratio of losses incurred to premiums earned is less than 66.00%, but not less than 54.00%, the adjusted commission rate for the underwriting year under consideration shall be 27.00%, plus 75.00% of the difference in percentage points between 66.00% and the actual ratio of losses incurred to premiums earned; 4. If the ratio of losses incurred to premiums earned is 54.0049.0% or less, the adjusted commission rate for the underwriting year under consideration shall be 36.0046.0%. C. If the ratio of losses incurred to premiums earned for any underwriting year is greater than 71.0077.0%, the difference in percentage points between the actual ratio of losses incurred to premiums earned and 71.0077.0% shall be multiplied by premiums earned for the underwriting year and the product shall be carried forward to the next underwriting year as a debit to losses incurred, subject to a maximum deficit carryforward of 23.0% of premiums earned. If the ratio of losses incurred to premiums earned for any underwriting year is less than 54.0049.0%, the difference in percentage points between 54.0049.0% and the actual ratio of losses incurred to premiums earned shall be multiplied by premiums earned for the underwriting year and the product shall be carried forward to the next adjustment period underwriting year as a credit to losses incurred. D. Within 45 days after 24 12 months following the end of each the second underwriting year and each subsequent underwriting year, and every 12 months thereafter until all losses subject to the underwriting year under consideration have been finally settled, the Company shall calculate and report the adjusted commission on premiums earned for the underwriting year, subject to the following: 1. If As respects the first calculation, if the adjusted commission on premiums earned is greater than commissions previously allowed by the Reinsurer on premiums earned for the underwriting year, the Reinsurer shall remit 75.0% of the difference to the Company as promptly as possible after receipt and verification of the Company’s report. 2. As respects the second and each subsequent calculation, if the adjusted commission on premiums earned is less than commissions previously allowed by the Reinsurer on premiums earned for the underwriting year, the Company shall remit the difference to the Reinsurer with its report. If the adjusted commission on premiums earned is greater than commissions previously allowed by the Reinsurer on premiums earned for the underwriting year, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company’s report, but in any event no less than 30 days following receipt of the report. E. In the event the adjusted commission calculation for any underwriting year is based partly on ceded reserves for losses and/or loss adjustment expense, the adjusted commission shall be recalculated within 45 days after the end of each subsequent 12-month period until all losses under policies with effective or renewal dates during the underwriting year have been settled. Any balance shown to be due either party as a result of any such recalculation shall be remitted promptly by the owing party to the party due such balance.

Sliding Scale Commission. A. The Reinsurer shall allow the Company a 27.00% [****] provisional commission on all premiums ceded to the Reinsurer hereunder. The Company shall allow the Reinsurer return commission on return premiums at the same rate. B. The provisional commission allowed the Company shall be adjusted for each underwriting year periodically in accordance with the provisions set forth herein. The adjusted commission shall be based upon the combined experiences of this Contract and those of the Non Standard Private Passenger Automobile Quota Share Reinsurance Contract, effective May 1, 2002, issued to Vesta Fire Insurance Corporation, Chicago, Illinois (hereinafter referred to as the “Companion Contract”). The adjusted commission rate shall be calculated as follows and be applied to premiums earned for the underwriting contract year under consideration: 1. If the ratio of losses incurred to premiums earned is 71.00% [****] or greater, the adjusted commission rate for the underwriting contract year under consideration shall be 24.50%[****]; 2. If the ratio of losses incurred to premiums earned is less than 71.00%[****], but not less than 66.00%[****], the adjusted commission rate for the underwriting contract year under consideration shall be 24.50%[****], plus 50.00% [****] of the difference in percentage points between 71.00% [****] and the actual rate ratio of losses incurred to premiums earned; 3. If the ratio of losses incurred to premiums earned is less than 66.00%[****], but not less than 54.00%[****], the adjusted commission rate for the underwriting contract year under consideration shall be 27.00%[****], plus 75.00% [****] of the difference in percentage points between 66.00% [****] and the actual ratio of losses incurred to premiums earned; 4. If the ratio of losses incurred to premiums earned is 54.00% [****] or less, the adjusted commission rate for the underwriting contract year under consideration shall be 36.00%[****]. C. If the ratio of losses incurred to premiums earned for any underwriting contract year is greater less than 71.00%[****], the difference in percentage points between the actual ratio of losses incurred to premiums earned and 71.00% shall be multiplied by premiums earned for the underwriting year and the product shall be carried forward to the next underwriting year as a debit to losses incurred. If the ratio of losses incurred to premiums earned for any underwriting year is less than 54.00%, the difference in percentage points between 54.00% [****] and the actual ratio of losses incurred to premiums earned shall be multiplied by premiums earned for the underwriting contract year and the product shall be carried forward to the next adjustment period contract year as a credit to losses incurred. D. Within 45 days after 24 months following Except as provided in the end of each underwriting year next paragraph, the Company shall calculate and report the adjusted commission on premiums earned for within 45 days after the underwriting end of each contract year, and within 45 days after the end of each 12‑month period thereafter until all losses subject hereto have been finally settled. Each such calculation shall be based on cumulative transactions hereunder from the beginning of the contract year through the date of adjustment, including, as respects losses incurred, any credit from the preceding contract year. If the adjusted commission on premiums earned for the contract year as of the date of adjustment is less than commissions previously allowed by the Reinsurer on premiums earned for the underwriting same contract year, the Company shall remit the difference to the Reinsurer with its report. If the adjusted commission on premiums earned for the contract year as of the date of adjustment is greater than commissions previously allowed by the Reinsurer on premiums earned for the underwriting same contract year, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company’s 's report. E. As respects the final contract year, the Company shall calculate and report the adjusted commission on premiums earned within 45 days after the date of termination of this Contract or the termination of a Subscribing Reinsurer's percentage share in this Contract, and within 45 days after the end of each 12‑month period thereafter until all losses subject hereto have been finally settled. Each such calculation shall be based on cumulative transactions hereunder from the beginning of the final contract year through the date of adjustment, including, as respects losses incurred, any credit from the preceding contract year. If the adjusted commission on premiums earned for the final contract year as of the date of adjustment is less than commissions previously allowed by the Reinsurer on premiums earned for the same contract year, the Company shall remit the difference to the Reinsurer with its report. If the adjusted commission on premiums earned for the final contract year as of the date of adjustment is greater than commissions previously allowed by the Reinsurer on premiums earned for the same contract year, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company's report.

Sliding Scale Commission. A. The Reinsurer shall allow the Company a 27.0029.0% provisional commission on all premiums ceded to the Reinsurer hereunder. The Company shall allow the Reinsurer return commission on return premiums at the same rate. B. The provisional commission allowed the Company shall be adjusted for each underwriting year periodically in accordance with the provisions set forth herein. The adjusted commission shall be based upon the combined experiences of this Contract and those of the Non Standard Private Passenger Automobile Quota Share Reinsurance Contract, effective May 1, 2002, issued to Vesta Fire Insurance Corporation, Chicago, Illinois (hereinafter referred to as the “Companion Contract”). The adjusted commission rate shall be calculated as follows and be applied to premiums earned for the underwriting contract year under consideration: 1. If the ratio of losses incurred to premiums earned is 71.0055.0% or greater, the adjusted commission rate for the underwriting contract year under consideration shall be 24.5025.0%; 2. If the ratio of losses incurred to premiums earned is less than 71.0055.0%, but not less than 66.0045.0%, the adjusted commission rate for the underwriting contract year under consideration shall be 24.5025.0%, plus 50.0050.0% of the difference in percentage points between 71.0055.0% and the actual rate ratio of losses incurred to premiums earned; 3. If the ratio of losses incurred to premiums earned is less than 66.0045.0%, but not less than 54.0035.0%, the adjusted commission rate for the underwriting contract year under consideration shall be 27.0030.0%, plus 75.00100% of the difference in percentage points between 66.0045.0% and the actual ratio of losses incurred to premiums earned; 4. If the ratio of losses incurred to premiums earned is 54.0035.0% or less, the adjusted commission rate for the underwriting contract year under consideration shall be 36.0040.0%. C. If the ratio of losses incurred to premiums earned for any underwriting contract year is greater than 71.0055.0%, the difference in percentage points between the actual ratio of losses incurred to premiums earned and 71.0055.0% shall be multiplied by premiums earned for the underwriting contract year and the product shall be carried forward to the next underwriting contract year as a debit to losses incurred. If the ratio of losses incurred to premiums earned for any underwriting contract year is less than 54.0035.0%, the difference in percentage points between 54.0035.0% and the actual ratio of losses incurred to premiums earned shall be multiplied by premiums earned for the underwriting contract year and the product shall be carried forward to the next adjustment period contract year as a credit to losses incurred. D. Within 45 days after 24 months following Except as provided in the end of each underwriting year next paragraph, the Company shall calculate and report the adjusted commission on premiums earned for within 45 days after the underwriting end of each contract year, and within 45 days after the end of each 12‑month period thereafter until all losses subject hereto have been finally settled. Each such calculation shall be based on cumulative transactions hereunder from the beginning of the contract year through the date of adjustment, including, as respects losses incurred, any debit or credit from the preceding contract year. If the adjusted commission on premiums earned for the contract year as of the date of adjustment is less than commissions previously allowed by the Reinsurer on premiums earned for the underwriting same contract year, the Company shall remit the difference to the Reinsurer with its report. If the adjusted commission on premiums earned for the contract year as of the date of adjustment is greater than commissions previously allowed by the Reinsurer on premiums earned for the underwriting same contract year, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company’s 's report. E. As respects the final contract year, the Company shall calculate and report the adjusted commission on premiums earned within 45 days after the date of termination of this Contract or the termination of a Subscribing Reinsurer's percentage share in this Contract, and within 45 days after the end of each 12‑month period thereafter until all losses subject hereto have been finally settled. Each such calculation shall be based on cumulative transactions hereunder from the beginning of the final contract year through the date of adjustment, including, as respects losses incurred, any debit or credit from the preceding contract year. If the adjusted commission on premiums earned for the final contract year as of the date of adjustment is less than commissions previously allowed by the Reinsurer on premiums earned for the same contract year, the Company shall remit the difference to the Reinsurer with its report. If the adjusted commission on premiums earned for the final contract year as of the date of adjustment is greater than commissions previously allowed by the Reinsurer on premiums earned for the same contract year, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company's report.

Sliding Scale Commission. A. The Reinsurer shall allow the Company a 27.0032.0% provisional commission on all premiums ceded to the Reinsurer hereunder. The Company shall allow the Reinsurer return commission on return premiums at the same rate. B. . The provisional commission allowed the Company shall be adjusted for each underwriting year periodically in accordance with the provisions set forth herein. The adjusted commission shall be based upon the combined experiences of this Contract and those of the Non Standard Private Passenger Automobile Quota Share Reinsurance Contract, effective May 1, 2002, issued to Vesta Fire Insurance Corporation, Chicago, Illinois (hereinafter referred to as the “Companion Contract”). . B. The adjusted commission rate shall be calculated as follows and be applied to premiums earned for the underwriting year under considerationterm of this Contract: 1. If the ratio of losses incurred to premiums earned is 71.0059.0% or greater, the adjusted commission rate for the underwriting year under consideration term of this Contract shall be 24.5026.0%; 2. If the ratio of losses incurred to premiums earned is less than 71.0059.0%, but not less than 66.0050.0%, the adjusted commission rate for the underwriting year under consideration term of this Contract shall be 24.5026.0%, plus 50.0067.0% of the difference in percentage points between 71.0059.0% and the actual rate ratio of losses incurred to premiums earned; 3. If the ratio of losses incurred to premiums earned is less than 66.0050.0%, but not less than 54.0040.0%, the adjusted commission rate for the underwriting year under consideration term of this Contract shall be 27.00%, 32.0% plus 75.0060.0% of the difference in percentage points between 66.0050.0% and the actual ratio of losses incurred to premiums earned; 4. If the ratio of losses incurred to premiums earned is 54.0040.0% or less, the adjusted commission rate for the underwriting year under consideration term of this Contract shall be 36.0038.0%. C. If the ratio of losses incurred to premiums earned for any underwriting year is greater than 71.00%, the difference in percentage points between the actual ratio of losses incurred to premiums earned and 71.00% shall be multiplied by premiums earned for the underwriting year and the product shall be carried forward to the next underwriting year as a debit to losses incurred. If the ratio of losses incurred to premiums earned for any underwriting year is less than 54.00%, the difference in percentage points between 54.00% and the actual ratio of losses incurred to premiums earned shall be multiplied by premiums earned for the underwriting year and the product shall be carried forward to the next adjustment period as a credit to losses incurred. D. Within 45 30 days after 24 12 months following the end expiration of each underwriting year this Contract, the Company shall calculate and report the adjusted commission on premiums earned for the underwriting yearterm of this Contract. If the adjusted commission on premiums earned is less than commissions previously allowed by the Reinsurer on premiums earned for the underwriting yearterm of this Contract, the Company shall remit the difference to the Reinsurer with its report. If the adjusted commission on premiums earned is greater than commissions previously allowed by the Reinsurer on premiums earned for the underwriting yearterm of this Contract, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company’s 's report. D. In the event the adjusted commission calculation for the term of this Contract is based partly on ceded reserves for losses and/or loss adjustment expense, the adjusted commission shall be recalculated within 30 days after the end of each subsequent 12-month period until all losses under policies with effective or renewal dates during the term of this Contract have been settled. Any balance shown to be due either party as a result of any such recalculation shall be remitted promptly by the other party.

Sliding Scale Commission. A. The Reinsurer shall allow the Company a 27.0025.0% provisional commission on all premiums ceded to the Reinsurer hereunder. The Company shall allow the Reinsurer return commission on return premiums at the same rate. B. The provisional commission allowed the Company shall be adjusted for each underwriting year periodically in accordance with the provisions set forth herein. The adjusted commission shall be based upon the combined experiences of this Contract and those of the Non Standard Private Passenger Automobile Quota Share Reinsurance Contract, effective May 1, 2002, issued to Vesta Fire Insurance Corporation, Chicago, Illinois (hereinafter referred to as the “Companion Contract”). The adjusted commission rate shall be calculated as follows and be applied to premiums earned for the underwriting year under consideration: 1. If the ratio of losses incurred to premiums earned is 71.0080.0% or greater, the adjusted commission rate for the underwriting year under consideration shall be 24.5015.0%;; 07\I6L1001 2. If the ratio of losses incurred to premiums earned is less than 71.0080.0%, but not less than 66.0075.0%, the adjusted commission rate for the underwriting year under consideration shall be 24.5015.0%, plus 50.0060.0% of the difference in percentage points between 71.0080.0% and the actual rate ratio of losses incurred to premiums earned; 3. If the ratio of losses incurred to premiums earned is less than 66.0075.0%, but not less than 54.0065.0%, the adjusted commission rate for the underwriting year under consideration shall be 27.0018.0%, plus 75.00% of the difference in percentage points between 66.0075.0% and the actual ratio of losses incurred to premiums earned; 4. If the ratio of losses incurred to premiums earned is 54.00less than 65.0%, but not less than 55.0%, the adjusted commission rate for the underwriting year under consideration shall be 28.0%, plus 80.0% of the difference in percentage points between 65.0% and the actual ratio of losses incurred to premiums earned; 5. If the ratio of losses incurred to premiums earned is less than 55.0%, but not less than 50.0%, the adjusted commission rate for the underwriting year under consideration shall be 36.0%, plus the difference in percentage points between 55.0% and the actual ratio of losses incurred to premiums earned; 6. If the ratio of losses incurred to premiums earned is 50.0% or less, the adjusted commission rate for the underwriting year under consideration shall be 36.0041.0%. C. If the ratio of losses incurred to premiums earned for any underwriting year is greater than 71.00%, the difference in percentage points between the actual ratio of losses incurred to premiums earned and 71.00% shall be multiplied by premiums earned for the underwriting year and the product shall be carried forward to the next underwriting year as a debit to losses incurred. If the ratio of losses incurred to premiums earned for any underwriting year is less than 54.00%, the difference in percentage points between 54.00% and the actual ratio of losses incurred to premiums earned shall be multiplied by premiums earned for the underwriting year and the product shall be carried forward to the next adjustment period as a credit to losses incurred. D. Within 45 days after 24 six months following the end of each underwriting year year, the Company shall calculate and report the adjusted commission on premiums earned for the underwriting year. If the adjusted commission on premiums earned is less than commissions previously allowed by the Reinsurer on premiums earned for the underwriting year, the Company shall remit the difference to the Reinsurer with its report. If the adjusted commission on premiums earned is greater than commissions previously allowed by the Reinsurer on premiums earned for the underwriting year, the Reinsurer shall remit the difference to the Company as promptly as possible within 15 days after receipt and verification of the Company’s report. D. In the event the adjusted commission calculation for any underwriting year is based partly on ceded reserves for losses, the adjusted commission shall be recalculated within 45 days after the end of each subsequent six-month period until all losses under policies allocated to the underwriting year have been settled. Any balance shown to be due either party as a result of any such recalculation shall be remitted within 15 days by the other party.

Sliding Scale Commission. A. The Reinsurer shall allow the Company a 27.0027.5% provisional commission on all premiums ceded to the Reinsurer hereunder. The Company shall allow the Reinsurer return commission on return premiums at the same rate. B. . The provisional commission allowed the Company shall be adjusted for each underwriting year periodically in accordance with the provisions set forth herein. The adjusted commission shall be based upon the combined experiences of this Contract and those of the Non Standard Private Passenger Automobile Quota Share Reinsurance Contract, effective May 1, 2002, issued to Vesta Fire Insurance Corporation, Chicago, Illinois (hereinafter referred to as the “Companion Contract”). . B. The adjusted commission rate shall be calculated as follows and be applied to premiums earned for the underwriting year under consideration: 1. If the ratio of losses incurred to premiums earned is 71.0064.0% or greater, the adjusted commission rate for the underwriting year under consideration shall be 24.5023.5%; 2. If the ratio of losses incurred to premiums earned is less than 71.0064.0%, but not less than 66.0060.0%, the adjusted commission rate for the underwriting year under consideration shall be 24.5023.5%, plus 50.00% of the difference in percentage points between 71.0064.0% and the actual rate ratio of losses incurred to premiums earned; 3. If the ratio of losses incurred to premiums earned is less than 66.0060.0%, but not less than 54.0047.5%, the adjusted commission rate for the underwriting year under consideration shall be 27.00%, 27.5% plus 75.0060.0% of the difference in percentage points between 66.0060.0% and the actual ratio of losses incurred to premiums earned; 4. If the ratio of losses incurred to premiums earned is 54.0047.5% or less, the adjusted commission rate for the underwriting year under consideration shall be 36.0035.0%. C. D. If the ratio of losses incurred to premiums earned for any underwriting year is greater than 71.0064.0%, the difference in percentage points between the actual ratio of losses incurred to premiums earned and 71.0064.0% shall be multiplied by premiums earned for the underwriting year and the product shall be carried forward to the next underwriting year as a debit to losses incurred. If the ratio of losses incurred to premiums earned for any underwriting year period is less than 54.0047.5%, the difference in percentage points between 54.0047.5% and the actual ratio of losses incurred to premiums earned shall be multiplied by premiums earned for the underwriting year and the product shall be carried forward to the next adjustment period underwriting year as a credit to losses incurred. D. E. Within 45 30 days after 24 months following the end of each underwriting year the Company shall calculate and report the adjusted commission on premiums earned for the underwriting year. If the adjusted commission on premiums earned is less than commissions previously allowed by the Reinsurer on premiums earned for the underwriting year, the Company shall remit the difference to the Reinsurer with its report. If the adjusted commission on premiums earned is greater than commissions previously allowed by the Reinsurer on premiums earned for the underwriting year, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company’s 's report. F. In the event the adjusted commission calculation for any underwriting year is based partly on ceded reserves for losses and/or loss adjustment expense, the adjusted commission shall be recalculated within 30 days after the end of each subsequent underwriting year until all losses under policies with effective or renewal dates during the underwriting year have been settled. Any balance shown to be due either party as a result of any such recalculation shall be remitted promptly by the other party.

Sliding Scale Commission. A. The Reinsurer shall allow the Company a 27.0030.0% provisional commission on all premiums the net unearned premium ceded to the Reinsurer hereunder. The Company shall allow the Reinsurer return commission on return premiums net unearned premium at the same rate. B. The provisional commission allowed the Company shall be adjusted for each underwriting year periodically in accordance with the provisions set forth herein. The adjusted commission shall be based upon the combined experiences of this Contract and those of the Non Standard Private Passenger Automobile Quota Share Reinsurance Contract, effective May 1, 2002, issued to Vesta Fire Insurance Corporation, Chicago, Illinois (hereinafter referred to as the “Companion Contract”). The adjusted commission rate shall be calculated as follows and be applied to premiums earned for the underwriting year under considerationterm of this Contract: 1. If the ratio of losses incurred to premiums earned is 71.0073.0% or greater, the adjusted commission rate for the underwriting year under consideration term of this Contract shall be 24.5020.0%; 2. If the ratio of losses incurred to premiums earned is less than 71.0073.0%, but not less than 66.0063.0%, the adjusted commission rate for the underwriting year under consideration term of this Contract shall be 24.5020.0%, plus 50.00% of the difference in percentage points between 71.0073.0% and the actual rate ratio of losses incurred to premiums earned; 3. If the ratio of losses incurred to premiums earned is less than 66.0063.0%, but not less than 54.0054.0%, the adjusted commission rate for the underwriting year under consideration term of this Contract shall be 27.0030.0%, plus 75.00% two-thirds of the difference in percentage points between 66.0063.0% and the actual ratio of losses incurred to premiums earned; 4. If the ratio of losses incurred to premiums earned is 54.0054.0% or less, the adjusted commission rate for the underwriting year under consideration term of this Contract shall be 36.0036.0%. C. If the ratio of losses incurred to premiums earned for any underwriting year is greater than 71.00%, the difference in percentage points between the actual ratio of losses incurred to premiums earned and 71.00% shall be multiplied by premiums earned for the underwriting year and the product shall be carried forward to the next underwriting year as a debit to losses incurred. If the ratio of losses incurred to premiums earned for any underwriting year is less than 54.00%, the difference in percentage points between 54.00% and the actual ratio of losses incurred to premiums earned shall be multiplied by premiums earned for the underwriting year and the product shall be carried forward to the next adjustment period as a credit to losses incurred. D. Within 45 days after 24 months following the end of each underwriting year the The Company shall calculate and report the adjusted commission on premiums earned for within 45 days following the underwriting yeartermination or expiration of this Contract and within (1) 45 days after the end of each six-month period thereafter as respects any downward adjustment of ceding commission below the provisional ceding commission, and (2) 45 days after the end of each 12-month period thereafter as respects any upward adjustment of ceding commission above the provisional ceding commission, until all losses subject hereto have been finally settled. Each such calculation shall be based on cumulative transactions hereunder from the effective date of this Contract through the date of adjustment. If the adjusted commission on premiums earned as of the date of adjustment is less than commissions previously allowed by the Reinsurer on premiums earned for the underwriting yearterm of this Contract, the Company shall remit the difference to the Reinsurer with its report. If the adjusted commission on premiums earned as of the date of adjustment is greater than commissions previously allowed by the Reinsurer on premiums earned for the underwriting yearterm of this Contract, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company’s report. However, there shall be no upward adjustment of ceding commission above the provisional ceding commission until 24 months following the effective date of termination or expiration.

Sliding Scale Commission. A. The Reinsurer shall allow the Company a 27.0025.0% provisional commission on all premiums ceded to the Reinsurer hereunder. The Company shall allow the Reinsurer return commission on return premiums at the same rate. B. The provisional commission allowed the Company shall be adjusted for each underwriting year periodically in accordance with the provisions set forth herein. The adjusted commission first adjustment period shall be based upon from the combined experiences effective date of this Contract through June 30, 1998, and those each subsequent contract period shall be a separate adjustment period. However, if this Contract is terminated, the final adjustment period shall be from the beginning of the Non Standard Private Passenger Automobile Quota Share Reinsurance Contractthen current adjustment period through the date of termination if this Contract is terminated on a "cutoff" basis, effective May 1, 2002, issued to Vesta Fire Insurance Corporation, Chicago, Illinois (hereinafter referred to as or the “Companion Contract”). end of the runoff period if this Contract is terminated on a "runoff" basis. C. The adjusted commission rate shall be calculated as follows and be applied to premiums earned for the underwriting year period under consideration: 1. If the ratio of losses incurred to premiums earned is 71.0074.0% or greater, the adjusted commission rate for the underwriting year period under consideration shall be 24.5020.0%; 2. If the ratio of losses incurred to premiums earned is less than 71.0074.0%, but not less than 66.0069.0%, the adjusted commission rate for the underwriting year period under consideration shall be 24.5020.0%, plus 50.00% of the difference in percentage points between 71.0074.0% and the actual rate ratio of losses incurred to premiums earned; 3. If the ratio of losses incurred to premiums earned is less than 66.0069.0%, but not less than 54.0049.0%, the adjusted commission rate for the underwriting year period under consideration shall be 27.0025.0%, plus 75.00% one-half of the difference in percentage points between 66.0069.0% and the actual ratio of losses incurred to premiums earned; 4. If the ratio of losses incurred to premiums earned is 54.0049.0% or less, the adjusted commission rate for the underwriting year period under consideration shall be 36.0035.0%. C. D. If the ratio of losses incurred to premiums earned for any underwriting year period is greater than 71.0074.0%, the difference in percentage points between the actual ratio of losses incurred to premiums earned and 71.0074.0% shall be multiplied by premiums earned for the underwriting year period and the product shall be carried forward to the next underwriting year adjustment period as a debit to losses incurred. If the ratio of losses incurred to premiums earned for any underwriting year period is less than 54.0049.0%, the difference in percentage points between 54.0049.0% and the actual ratio of losses incurred to premiums earned shall be multiplied by premiums earned for the underwriting year period and the product shall be carried forward to the next adjustment period as a credit to losses incurred. D. Within 45 days after 24 months following E. Except as provided in the end of each underwriting year next paragraph, the Company shall calculate and report the adjusted commission on premiums earned for within 45 days after the underwriting yearend of each adjustment period, and within 45 days after the end of each 12-month period thereafter until all losses subject hereto have been finally settled. Each such calculation shall be based on cumulative transactions hereunder from the beginning of the adjustment period through the date of adjustment, including, as respects losses incurred, any debit or credit from the preceding adjustment period. If the adjusted commission on premiums earned for the adjustment period as of the date of adjustment is less than commissions previously allowed by the Reinsurer on premiums earned for the underwriting yearsame period, the Company shall remit the difference to the Reinsurer with its report. If the adjusted commission on premiums earned for the adjustment period as of the date of adjustment is greater than commissions previously allowed by the Reinsurer on premiums earned for the underwriting yearsame period, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company’s 's report. F. As respects the final adjustment period, the Company shall calculate and report the adjusted commission on premiums earned within 45 days after the date of termination, and within 45 days after the end of each 12-month period thereafter until all losses subject hereto have been finally settled. Each such calculation shall be based on cumulative transactions hereunder from the beginning of the final adjustment period through the date of adjustment, including, as respects losses incurred, any debit or credit from the preceding adjustment period. If the adjusted commission on premiums earned for the final adjustment period as of the date of adjustment is less than commissions previously allowed by the Reinsurer on premiums earned for the same period, the Company shall remit the difference to the Reinsurer with its report. If the adjusted commission on premiums earned for the final adjustment period as of the date of adjustment is greater than commissions previously allowed by the Reinsurer on premiums earned for the same period, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company's report.

Sliding Scale Commission. A. The Reinsurer shall allow the Company a 27.0032.5% provisional commission on all premiums ceded to the Reinsurer hereunder. The Company shall allow the Reinsurer return commission on return premiums at the same rate. B. The provisional commission allowed the Company shall be adjusted for each underwriting year periodically in accordance with the provisions set forth herein. The adjusted commission first adjustment period shall be based upon from the combined experiences effective date of this Contract through December 31, 1998, and those each subsequent 12-month period shall be a separate adjustment period. However, if this Contract is terminated, the final adjustment period shall be from the beginning of the Non Standard Private Passenger Automobile Quota Share Reinsurance Contractthen current adjustment period through the date of termination if this Contract is terminated on a "cutoff" basis, effective May 1, 2002, issued to Vesta Fire Insurance Corporation, Chicago, Illinois (hereinafter referred to as or the “Companion Contract”). end of the runoff period if this Contract is terminated on a "runoff" basis. C. The adjusted commission rate shall be calculated as follows and be applied to premiums earned for the underwriting year period under consideration: 1. If the ratio of losses incurred to premiums earned is 71.0010% or greater, the adjusted commission rate for the underwriting year period under consideration shall be 24.5030%; 2. If the ratio of losses incurred to premiums earned is less than 71.00%, but not less than 66.0010%, the adjusted commission rate for the underwriting year period under consideration shall be 24.5030%, plus 50.0050% of the difference in percentage points between 71.0010% and the actual rate ratio of losses incurred to premiums earned; 3. If the ratio of losses incurred to premiums earned is less than 66.00%, but not less than 54.000%, the adjusted commission rate for the underwriting year period under consideration shall be 27.00%, plus 75.00% of the difference in percentage points between 66.00% and the actual ratio of losses incurred to premiums earned; 4. If the ratio of losses incurred to premiums earned is 54.00% or less, the adjusted commission rate for the underwriting year under consideration shall be 36.0035%. C. D. If the ratio of losses incurred to premiums earned for any underwriting year period is greater than 71.0010%, the difference in percentage points between the actual ratio of losses incurred to premiums earned and 71.0010% shall be multiplied by premiums earned for the underwriting year and the product shall be carried forward to the next underwriting year as a debit to losses incurred. If the ratio of losses incurred to premiums earned for any underwriting year is less than 54.00%, the difference in percentage points between 54.00% and the actual ratio of losses incurred to premiums earned shall be multiplied by premiums earned for the underwriting year period and the product shall be carried forward to the next adjustment period as a credit debit to losses incurred. D. Within 45 days after 24 months following E. Except as provided in the end of each underwriting year next paragraph, the Company shall calculate and report the adjusted commission on premiums earned for within 60 days after the underwriting yearend of each adjustment period, and within 60 days after the end of each 12-month period thereafter until all losses subject hereto have been finally settled. Each such calculation shall be based on cumulative transactions hereunder from the beginning of the adjustment period through the date of adjustment, including, as respects losses incurred, any debit or credit from the preceding adjustment period. If the adjusted commission on premiums earned for the adjustment period as of the date of adjustment is less than commissions previously allowed by the Reinsurer on premiums earned for the underwriting yearsame period, the Company shall remit the difference to the Reinsurer with its report. If the adjusted commission on premiums earned for the adjustment period as of the date of adjustment is greater than commissions previously allowed by the Reinsurer on premiums earned for the underwriting yearsame period, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company’s 's report. F. As respects the final adjustment period, the Company shall calculate and report the adjusted commission on premiums earned within 60 days after the date of termination, and within 60 days after the end of each 12-month period thereafter until all losses subject hereto have been finally settled. Each such calculation shall be based on cumulative transactions hereunder from the beginning of the final adjustment period through the date of adjustment, including, as respects losses incurred, any debit from the preceding adjustment period. If the adjusted commission on premiums earned for the final adjustment period as of the date of adjustment is less than commissions previously allowed by the Reinsurer on premiums earned for the same period, the Company shall remit the difference to the Reinsurer with its report. If the adjusted commission on premiums earned for the final adjustment period as of the date of adjustment is greater than commissions previously allowed by the Reinsurer on premiums earned for the same period, the Reinsurer shall remit the difference to the Company as promptly as possible after receipt and verification of the Company's report.

Sliding Scale Commission. A. The Reinsurer shall allow the Company a 27.0033.00% provisional commission on all premiums ceded to the Reinsurer hereunder. The Company shall allow the Reinsurer return commission on return premiums at the same rate. B. The provisional commission allowed the Company shall be adjusted periodically for each underwriting contract year in accordance with the provisions set forth herein. The adjusted commission shall be based upon the combined experiences of this Contract and those of the Non Standard Private Passenger Automobile Quota Share Reinsurance Contract, effective May 1, 2002, issued to Vesta Fire Insurance Corporation, Chicago, Illinois (hereinafter referred to as the “Companion Contract”). The adjusted commission rate shall be calculated as follows and be applied to premiums earned for the underwriting contract year under consideration: 1. If the ratio of losses incurred to premiums earned is 71.0069.67% or greater, the adjusted commission rate for the underwriting contract year under consideration shall be 24.5028.00%;; [XXXXXXXX LOGO] 2. If the ratio of losses incurred to premiums earned is less than 71.0069.67%, but not less than 66.0045.67%, the adjusted commission rate for the underwriting contract year under consideration shall be 24.5028.00%, plus 50.00% three-fourths of the difference in percentage points between 71.0069.67% and the actual rate ratio of losses incurred to premiums earned; 3. If the ratio of losses incurred to premiums earned is less than 66.00%, but not less than 54.00%, the adjusted commission rate for the underwriting year under consideration shall be 27.00%, plus 75.00% of the difference in percentage points between 66.00% and the actual ratio of losses incurred to premiums earned; 4. If the ratio of losses incurred to premiums earned is 54.0045.67% or less, the adjusted commission rate for the underwriting contract year under consideration shall be 36.0046.00%. C. If the ratio of losses incurred to premiums earned for any underwriting contract year is greater than 71.0069.67%, the difference in percentage points between the actual ratio of losses incurred to premiums earned and 71.0069.67% shall be multiplied by premiums earned for the underwriting contract year and the product shall be carried forward to the next underwriting contract year as a debit to losses incurred. If the ratio of losses incurred to premiums earned for any underwriting contract year is less than 54.0045.67%, the difference in percentage points between 54.0045.67% and the actual ratio of losses incurred to premiums earned shall be multiplied by premiums earned for the underwriting contract year and the product shall be carried forward to the next adjustment period contract year as a credit to losses incurred. D. Within 45 days after 24 months following the end of each underwriting year the The Company shall calculate and report the adjusted commission on premiums earned for within 60 days after the underwriting end of each contract year (or, as respects the final contract year, within 60 days after the effective date of termination), and within 60 days after the end of each 12-month period thereafter until all losses subject hereto have been finally settled. Each such calculation shall be based on cumulative transactions hereunder from the beginning of the contract year through the date of adjustment, including, as respects losses incurred, any debit or credit from the preceding contract year. If the adjusted commission on premiums earned for the contract year as of the date of adjustment is less than commissions previously allowed by the Reinsurer on premiums earned for the underwriting yearsame period, the Company difference shall remit the difference to be due the Reinsurer with its as of the date of the Company's report. If the adjusted commission on premiums earned for the contract year as of the date of adjustment is greater than commissions previously allowed by the Reinsurer on premiums earned for the underwriting yearsame period, the Reinsurer difference shall remit the difference to be due the Company as promptly as possible after receipt and verification of the date of the Company’s 's report. Any ceding commission adjustments due will be added to (or deducted from) the funds withheld account, and the funds withheld account (including interest credits) shall be maintained as if such adjustments were made during the applicable contract year.