No. 3154-028-E001
ENDORSEMENT
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Attached to and forming part of PROPERTY AND CASUALTY CLASH EXCESS OF LOSS
REINSURANCE AGREEMENT NO. 3154-0028 between PENN-AMERICA INSURANCE COMPANY,
PENN-STAR INSURANCE COMPANY, both of Hatboro, Pennsylvania and PENN-PATRIOT
INSURANCE COMPANY of Richmond, Virginia (hereinafter referred to as the
`Company'), and AMERICAN RE-INSURANCE COMPANY, a Delaware Corporation with
administrative offices in Princeton, New Jersey (hereinafter referred to as
the "Reinsurer").
It is understood and agreed by the parties hereto, that effective 12:01
a.m., Eastern Standard Time, January 1, 2004, this Agreement is amended to
read as follows:
I. The "Slender Lady Program" is added as an exception to Exclusion C. 1
of the EXCLUSIONS Article and the exclusion reads as follows:
1. Professional Liability or Errors and Omissions Coverage other
than for the following:
a. "Beau-T-Pak";
b. Barbers;
c. Opticians;
d. Veterinarians that treat household pets;
e. Morticians;
f. Clergy;
g. Employee Benefits Liability (E&O Coverage);
h. Druggists;
i. "Day Care Pak";
j. "Adult Day Care";
k. "Health Club Pak";
l. "Instructor Pak";
m. In-Home Day Care;
n. "Pet Pak";
o. "Wellness Pak";
p. "Massage Program"; or
q. "Slender Lady Program".
II. Professional Liability maximum policy limits are amended and maximum
limits form the "Slender Lady Program" are added to ARTICLE V,
WARRANTY, and the Article reads as follows:
No. 3154-028-E001
ARTICLE X
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WARRANTY
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Casualty
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A. The maximum limits of liability for any one policy of the Company
shall be deemed not to exceed the following:
1. General Liability - $1,000,000 each occurrence and
$2,000,000 general aggregate. a) As respects Products and
Completed Operations - $1,000,000 in the aggregate.
2. Massage Program - $2,000,000 each occurrence and $3,000,000
general aggregate.
3. Umbrella and Excess General Liability- The Company will
purchase or so deemed umbrella facultative reinsurance and
excess general liability reinsurance covering Extra
Contractual Obligations and Excess Judgments liability as
defined within this Agreement for an amount equal to and in
addition to the umbrella policy limit, subject to an annual
aggregate limit of $5,000,000. Facultative reinsurance
coverage for any umbrella extra contractual obligations or
excess judgments liability shall inure to the benefit of
this Agreement.
4. Professional Liability - $1,000,000 each occurrence and
$2,000,000 general aggregate.
5. Professional Liability "Slender Lady Program" - $1,000,000
each occurrence and $3,000,000 general aggregate.
Property
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A. It shall be deemed that the company will purchase facultative
reinsurance on all risks in excess of $2,000,000.
B. It shall be deemed that the company will purchase catastrophe
reinsurance for $29,000,000 in excess of $1,000,000 for any one
occurrence.
No. 3154-028-E001
IN WITNESS WHEREOF the parties hereto have caused this Endorsement to be
executed in duplicate in Hatboro, Pennsylvania, this 10th day of September,
2004;
ACCEPTED:
PENN-AMERICA INSURANCE COMPANY
PENN-STAR INSURANCE COMPANY
PENN-PATRIOT INSURANCE COMPANY
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and in Princeton, New Jersey, this 9th Day of September 2004.
AMERICAN RE-INSURANCE COMPANY
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Vice President
DATED: August 9, 2004
RG/rg
