EXHIBIT (10)(O)
SEVENTH AMENDMENT
TO
HARLEYSVILLE MUTUAL INSURANCE COMPANY
HURON INSURANCE COMPANY
HARLEYSVILLE INSURANCE COMPANY OF NEW JERSEY
HARLEYSVILLE-ATLANTIC INSURANCE COMPANY
WORCESTER INSURANCE COMPANY
MID-AMERICA INSURANCE COMPANY
NEW YORK CASUALTY INSURANCE COMPANY
GREAT OAKS INSURANCE COMPANY
PROPORTIONAL REINSURANCE AGREEMENT
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This Seventh Amendment to the Proportional Reinsurance
Agreement is entered into by and between HARLEYSVILLE MUTUAL
INSURANCE COMPANY ("HMIC"), HURON INSURANCE COMPANY ("HURON"),
HARLEYSVILLE INSURANCE COMPANY OF NEW JERSEY ("HICNJ"),
HARLEYSVILLE-ATLANTIC INSURANCE COMPANY ("HAIC"), WORCESTER
INSURANCE COMPANY ("WIC"), MID-AMERICA INSURANCE COMPANY ("MAIC")
(formerly Connecticut Union Insurance Company), NEW YORK CASUALTY
INSURANCE COMPANY ("NYC"), GREAT OAKS INSURANCE COMPANY ("GOIC"),
and PENNLAND INSURANCE COMPANY ("Pennland").
The purpose of this Amendment is to amend the Proportional
Reinsurance Agreement ("the Agreement") between Harleysville Mutual
Insurance Company, Huron Insurance Company, Harleysville Insurance
Company of New Jersey, Harleysville-Atlantic Insurance Company,
Worcester Insurance Company, Mid-America Insurance Company
(formerly Connecticut Union Insurance Company), New York Casualty
Insurance Company, and Great Oaks Insurance Company, dated April 7,
1986, and amended June 30, 1987, December 30, 1988, November 22,
1989, March 19, 1990, August 9, 1993 (with revision dated August 2,
1994), and March 16, 1996, in which those companies created a
common risk-sharing pool for their underwriting operations, to
adjust the participation of certain participating companies, and to
provide for the participation of a new subsidiary, Pennland.
In consideration of the mutual agreements hereinafter set
forth and contained in the Agreement, the parties hereby agree as
follows:
1. Pennland is a subsidiary of HMIC as that term is defined
in Paragraph 1.6 of Part I of the Proportional
Reinsurance Agreement.
2. Pennland shall participate in the Agreement as of January
1, 1996.
3. As of January 1, 1996, the proportionate share of all
participants shall be as set forth in Exhibit I to this
Seventh Amendment.
4. The definitions of "book of business then in force" and
"net" found in paragraphs 1.3 and 1.4 of Part I of the
Proportional Reinsurance Agreement shall exclude any and
all liabilities assumed by Huron from Lake States
Insurance Company pursuant to any quota share reinsurance
agreement entered into by Huron and Lake States Insurance
Company.
5. As of January 1, 1996, the second sentence of paragraph
1.2 of Part II of the Proportional Reinsurance Agreement
shall be amended to read "In consideration of this
assumption, the Subsidiaries agree to pay to HMIC, as
soon as practicable thereafter, their: (1) net unearned
premium reserves less commission at the rate of 24%
thereon, except in the case of Pennland, for which the
rate will be 16%, (2) reserves for outstanding net
losses, and (3) reserves for outstanding net expenses,
all as of the close of business", and the second sentence
of paragraph 1.4 of Part II shall be amended to read "In
consideration of this assumption, HMIC agrees to pay to
the Subsidiaries, as soon as practicable thereafter,
their proportionate share of the combined net unearned
premium reserves, less commissions at the rate of 24%
thereon, except that with regard to net unearned premium
reserves attributable to cessions from Pennland, the rate
of commission shall be 16%."
6. All other terms and conditions of the Proportional
Reinsurance Agreement as amended shall remain the same
and apply to Pennland, except the term "opening of
business" found in Part I, Paragraph 1.1, shall mean for
Pennland 12:01 A.M., January 1, 1996 (although for the
last sentence of Part II, Paragraph 1.4, the term shall
continue to mean January 1, 1986).
IN WITNESS WHEREOF, the parties hereto have caused this
Seventh Amendment to the Proportional Reinsurance Agreement to be
executed by their duly authorized respective officers on this 18th
day of March, 1996.
ATTEST: HARLEYSVILLE MUTUAL INSURANCE COMPANY
/s/XXXXX X. XXXXX BY: /s/XXXXX X. XXXXXXX
----------------- -------------------
Xxxxx X. Xxxxx Xxxxx X. Xxxxxxx
HURON INSURANCE COMPANY
/s/XXXXX X. XXXXX BY: /s/XXXXXX X. XXXXX
----------------- ------------------
Xxxxx X. Xxxxx Xxxxxx X. Xxxxx
HARLEYSVILLE INSURANCE COMPANY OF
NEW JERSEY
/s/XXXXX X. XXXXX BY: /s/XXXX X. XXXXXXX
----------------- ------------------
Xxxxx X. Xxxxx Xxxx X. Xxxxxxx
HARLEYSVILLE-ATLANTIC INSURANCE COMPANY
/s/XXXXX X. XXXXX BY: /s/XXXX X. XXXXXXX
----------------- ------------------
Xxxxx X. Xxxxx Xxxx X. Xxxxxxx
WORCESTER INSURANCE COMPANY
/s/XXXXX X. XXXXX BY: /s/XXXX X. XXXXXXX
----------------- ------------------
Xxxxx X. Xxxxx Xxxx X. Xxxxxxx
MID-AMERICA INSURANCE COMPANY
(formerly Connecticut Union Insurance
Company)
/s/XXXXX X. XXXXX BY: /s/XXXXXX X. XXXXX
----------------- ------------------
Xxxxx X. Xxxxx XXXXXX X. XXXXX
NEW YORK CASUALTY INSURANCE COMPANY
/s/XXXXX X. XXXXX BY: /s/XXXX X. XXXXXXX
----------------- ------------------
Xxxxx X. Xxxxx Xxxx X. Xxxxxxx
GREAT OAKS INSURANCE COMPANY
/s/XXXXX X. XXXXX BY: /s/XXXX X. XXXXXXX
----------------- ------------------
Xxxxx X. Xxxxx Xxxx X. Xxxxxxx
PENNLAND INSURANCE COMPANY
/s/XXXXX X. XXXXX BY: /s/XXXXXX X. XXXXXXXX
----------------- ---------------------
Xxxxx X. Xxxxx Xxxxxx X. Xxxxxxxx
EXHIBIT I
TO THE
SEVENTH AMENDMENT
TO THE
PROPORTIONAL REINSURANCE AGREEMENT
POOL PARTICIPANTS POOL PARTICIPATIONS
----------------- -------------------
Harleysville Mutual Insurance Company 27%
Harleysville-Atlantic Insurance Company 6%
Huron Insurance Company 17%
Harleysville Insurance Company of New Jersey 20%
Mid-America Insurance Company 1%
(Formerly Connecticut Union Insurance Company)
New York Casualty Insurance Company 3%
Worcester Insurance Company 17%
Great Oaks Insurance Company 1%
Pennland Insurance Company 8%
