Common use of Underwriting Loss Clause in Contracts

Underwriting Loss. (A) Commercial Fund After the retentions and assignments under paragraph (4)(B), the amount of underwriting loss retained by the Company will be calculated within each State as the sum of the following: (i) For that portion of the underwriting loss amount for which the company’s loss ratio exceeds 100 percent and is less than or equal to 160 percent, the Company will retain an amount of the underwriting loss equal to the product of the following: (I) its retained net book premium; (II) the lesser of the Company’s actual loss ratio or 160 percent, minus 100 percent; and (III) the following percentage for the applicable State: State Group 1 50.0 percent State Group 2 50.0 percent State Group 3 50.0 percent State Group 4 40.0 percent (ii) For that portion of the underwriting loss amount for which the company’s loss ratio exceeds 160 percent and is less than or equal to 220 percent, the Company will retain an amount of the underwriting loss equal to the product of the following: (I) its retained net book premium; (II) the lesser of the Company’s actual loss ratio or 220 percent, minus 160 percent; and (III) the following percentage for the applicable State: State Group 1 20.0 percent State Group 2 20.0 percent State Group 3 20.0 percent State Group 4 20.0 percent (iii) For that portion of the underwriting loss amount for which the company’s loss ratio exceeds 220 percent and is less than or equal to 500 percent, the Company will retain an amount of the underwriting loss equal to the product of the following: (I) its retained net book premium; (II) the lesser of the Company’s actual loss ratio or 500 percent, minus 220 percent; and (III) the following percentage for the applicable State: State Group 1 5.0 percent State Group 2 5.0 percent State Group 3 5.0 percent State Group 4 5.0 percent (iv) FCIC will assume 100 percent of that portion of the underwriting loss amount by which the Company’s loss ratio exceeds 500 percent. (B) For the Residual Fund: The amount of national underwriting loss for all AIPs and that portion retained by the Company will be calculated as the sum of the following: (i) For that portion of the underwriting loss amount for which the national loss ratio exceeds 100 percent and is less than or equal to 160 percent, the Company will retain an amount of the underwriting loss equal to the product of the following: (I) the net book premium designated to the Residual Fund by all AIPs; (II) the Company’s interest in premium and associated ultimate net losses in the Residual Fund, as determined in subparagraph (3)(B); (III) the lesser of the actual national loss ratio or 160 percent, minus 100 percent; and (IV) 5.0 percent. (ii) For that portion of the underwriting loss amount for which the national loss ratio exceeds 160 percent and is less than or equal to 220 percent, the Company will retain an amount of the underwriting loss equal to the product of the following: (I) the net book premium designated to the Residual Fund by all AIPs; (II) the Company’s interest in premium and associated ultimate net losses in the Residual Fund, as determined in subparagraph (3)(B); (III) the lesser of the actual national loss ratio or 220 percent, minus 220 percent; and (IV) 4.0 percent. (iii) For that portion of the underwriting loss amount for which the national loss ratio exceeds 220 percent and is less than or equal to 500 percent, the Company will retain an amount of the underwriting loss equal to the product of the following: (I) the net book premium designated to the Residual Fund by all AIPs; (II) the Company’s interest in premium and associated ultimate net losses in the Residual Fund, as determined in subparagraph (3)(B); (III) the lesser of the actual national loss ratio or 500 percent, minus 220 percent; and (IV) 2.0 percent. (iv) FCIC will assume 100 percent of that portion of the underwriting loss amount by which the national loss ratio exceeds 500 percent.

Underwriting Loss. (A) Commercial Fund After the retentions and assignments under paragraph (4)(B), the amount of underwriting loss retained by the Company will be calculated within each State as the sum of the following: (i) For that portion of the underwriting loss amount for which the company’s loss ratio exceeds 100 percent and is less than or equal to 160 percent, the Company shall will retain an amount of the underwriting loss equal to the product of the following: (I) its retained net book premium; (II) the lesser of the Company’s actual loss ratio or 160 percent, minus 100 percent; and (III) the following percentage for the applicable State: State Group 1 50.0 6550.0 percent State Group Groups 2 50.0 and 3 4550.0 percent State Group 3 50.0 percent State Group 4 40.0 percent (ii) For that portion of the underwriting loss amount for which the company’s loss ratio exceeds 160 percent and is less than or equal to 220 percent, the Company shall will retain an amount of the underwriting loss equal to the product of the following: (I) its retained net book premium; (II) the lesser of the Company’s actual loss ratio or 220 percent, minus 160 percent; and (III) the following percentage for the applicable State: State Group 1 20.0 4520.0 percent State Group Groups 2 and 3 20.0 percent State Group 3 20.0 percent State Group 4 20.0 percent (iii) For that portion of the underwriting loss amount for which the company’s loss ratio exceeds 220 percent and is less than or equal to 500 percent, the Company shall will retain an amount of the underwriting loss equal to the product of the following: (I) its retained net book premium; (II) the lesser of the Company’s actual loss ratio or 500 percent, minus 220 percent; and (III) the following percentage for the applicable State: State Group 1 5.0 105.0 percent State Group Groups 2 and 3 5.0 percent State Group 3 5.0 percent State Group 4 5.0 percent (iv) FCIC shall will assume 100 percent of that portion of the underwriting loss amount by which the Company’s loss ratio exceeds 500 percent. (B) For the Residual Fund: The amount of the national underwriting loss for all AIPs and that portion retained by the Company will be calculated as the sum of the following: (i) For that portion of the underwriting loss amount for which the national loss ratio for the Company exceeds 100 percent and is less than or equal to 160 percent, the Company shall will retain an amount of the underwriting loss equal to the product of the following: (I) the net book premium designated to the Residual Fund by all AIPs; (II) (I) the Company’s Company’sits retained net book premium; interest in premium and associated ultimate net losses in the Residual Fund, as determined in subparagraph (3)(B); (IIIII) the lesser of the Company’s actual national loss ratio or 160 percent, minus 100 percent; and (IV) 5.0 percent. (ii) For that portion of the underwriting loss amount for which the national loss ratio exceeds 160 percent and is less than or equal to 220 percent, the Company will retain an amount of the underwriting loss equal to the product of the following: (I) the net book premium designated to the Residual Fund by all AIPs; (II) the Company’s interest in premium and associated ultimate net losses in the Residual Fund, as determined in subparagraph (3)(B); (III) the lesser of the actual national loss ratio or 220 percent, minus 220 percent; and (IV) 4.0 percent. (iii) For that portion of the underwriting loss amount for which the national loss ratio exceeds 220 percent and is less than or equal to 500 percent, the Company will retain an amount of the underwriting loss equal to the product of the following: (I) the net book premium designated to the Residual Fund by all AIPs; (II) the Company’s interest in premium and associated ultimate net losses in the Residual Fund, as determined in subparagraph (3)(B); (III) the lesser of the actual national loss ratio or 500 percent, minus 220 percent; and (IV) 2.0 percent. (iv) FCIC will assume 100 percent of that portion of the underwriting loss amount by which the national loss ratio exceeds 500 percent.

Underwriting Loss. (A) Commercial Fund After the retentions and assignments under paragraph (4)(B4), the amount of underwriting loss retained by the Company will be calculated within each State as the sum of the following: (i) For that portion of the underwriting loss amount for which the company’s loss ratio exceeds 100 percent and is less than or equal to 160 percent, the Company will shall retain an amount of the underwriting loss equal to the product of the following: (I) its retained net book premium; (II) the lesser of the Company’s actual loss ratio or 160 percent, minus 100 percent; and (III) the following percentage for the applicable State: State Group 1 50.0 65.0 percent State Group Groups 2 50.0 percent State Group and 3 50.0 percent State Group 4 40.0 45.0 percent (ii) For that portion of the underwriting loss amount for which the company’s loss ratio exceeds 160 percent and is less than or equal to 220 percent, the Company will shall retain an amount of the underwriting loss equal to the product of the following: (I) its retained net book premium; (II) the lesser of the Company’s actual loss ratio or 220 percent, minus 160 percent; and (III) the following percentage for the applicable State: State Group 1 20.0 45.0 percent State Group Groups 2 20.0 percent State Group and 3 20.0 percent State Group 4 20.0 percent (iii) For that portion of the underwriting loss amount for which the company’s loss ratio exceeds 220 percent and is less than or equal to 500 percent, the Company will shall retain an amount of the underwriting loss equal to the product of the following: (I) its retained net book premium; (II) the lesser of the Company’s actual loss ratio or 500 percent, minus 220 percent; and (III) the following percentage for the applicable State: State Group 1 5.0 10.0 percent State Group Groups 2 5.0 percent State Group and 3 5.0 percent State Group 4 5.0 percent (iv) FCIC will shall assume 100 percent of that portion of the underwriting loss amount by which the Company’s loss ratio exceeds 500 percent. (B) For the Residual Fund: The amount of national the underwriting loss for all AIPs and that portion retained by the Company will be calculated as the sum of the following: (i) For that portion of the underwriting loss amount for which the national loss ratio for the Company exceeds 100 percent and is less than or equal to 160 percent, the Company will shall retain an amount of the underwriting loss equal to the product of the following: (I) the its retained net book premium designated to the Residual Fund by all AIPspremium; (II) the Company’s interest in premium and associated ultimate net losses in the Residual Fund, as determined in subparagraph (3)(B); (III) the lesser of the actual Company’s national loss ratio or 160 percent, minus 100 percent; and (IVIII) 5.0 percent. (ii) For that portion of the underwriting loss amount for which the national loss ratio for the Company exceeds 160 percent and is less than or equal to 220 percent, the Company will shall retain an amount of the underwriting loss equal to the product of the following: (I) the its retained net book premium designated to the Residual Fund by all AIPspremium; (II) the Company’s interest in premium and associated ultimate net losses in the Residual Fund, as determined in subparagraph (3)(B); (III) the lesser of the actual Company’s national loss ratio or 220 percent, minus 220 160 percent; and (IVIII) 4.0 percent. (iii) For that portion of the underwriting loss amount for which the national loss ratio for the Company exceeds 220 percent and is less than or equal to 500 percent, the Company will shall retain an amount of the underwriting loss equal to the product of the following: (I) the its retained net book premium designated to the Residual Fund by all AIPspremium; (II) the Company’s interest in premium and associated ultimate net losses in the Residual Fund, as determined in subparagraph (3)(B); (III) the lesser of the actual Company’s national loss ratio or 500 percent, minus 220 percent; and (IVIII) 2.0 percent. (iv) FCIC will shall assume 100 percent of that portion of the underwriting loss amount by which the national loss ratio for the Company exceeds 500 percent.