EXHIBIT (10)(Q)
NINTH 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
PENNLAND INSURANCE COMPANY
LAKE STATES INSURANCE COMPANY
PROPORTIONAL REINSURANCE AGREEMENT
----------------------------------
This Ninth Amendment to the proportional Reinsurance Agreement
is entered into by and between HARLEYSVILLE 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"), NEW YORK CASUALTY INSURANCE COMPANY
("NYC), GREAT OAKS INSURANCE COMPANY ("GOIC"), PENNLAND INSURANCE
COMPANY ("PENNLAND"), LAKES STATES INSURANCE COMPANY ("LSIC") AND
MINNESOTA FIRE AND CASUALTY COMPANY ("MF&C").
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, New
York Casualty Insurance Company, Great Oaks Insurance Company,
Pennland Insurance Company and Lake States 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), March 16, 1995, March 18, 1986, and March 3,
1997 (with Addendum dated March 3, 1997), in which those companies
created a common risk-sharing pool for their underwriting
operations, to address business assumed by HMIC from Boyertown
Mutual Insurance Company ("Boyertown") prior to its renewal at
Harleysville's rates, and to provide for the participation of a new
subsidiary, MF&C.
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In consideration of the mutual agreements hereinafter set
forth and contained in the Agreement, the parties hereby agree as
follows:
1. HMIC has entered into a Liability and Asset Transfer with
Boyertown, which is only licensed in the Commonwealth of
Pennsylvania, whereby HMIC will assume the assets and
liabilities, policy and corporate, of Boyertown, which
assumption is being undertaken with the approval of the
Pennsylvania Insurance Department because of Boyertown's
precarious financial condition. Therefore until such
policies are renewed by HMIC or another company which is
a participant in the Agreement, such business shall be
excluded from this Agreement and be solely a liability or
asset of HMIC.
2. MF&C is a subsidiary of HMIC as that term is defined in
Paragraph 1.6 of Part I of the Proportional Reinsurance
Agreement.
3. MF&C shall participate in the Agreement as of January 1,
1998.
4. As of January 1, 1998, the proportionate share of all
participants shall be as set forth in Exhibit I to this
Ninth Amendment.
5. All other terms and conditions of the Proportional
Reinsurance Agreement, as amended from time to time, shall
remain the same and apply to MF&C, except the term
"opening of business" found in Part I, Paragraph 1.1 shall
mean for MF&C 12:01 A.M., January 1, 1998 (although for
the last sentence of Part II, Paragraph 1.4, the term
shall continue to mean January 1, 1986).
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IN WITNESS WHEREOF, the parties hereto have caused this Ninth
Amendment to the Proportional Reinsurance Agreement to be executed
by their duly authorized respective officers on this 4th day of
March, 1998.
ATTEST: HARLEYSVILLE MUTUAL INSURANCE COMPANY
/s/XXXXX X. XXXXX BY: /s/XXXXX X. XXXXX
------------------------- ----------------------------------------
Xxxxx X. Xxxxx, Secretary Xxxxx X. Xxxxx, Senior Vice Pres.
and Chief Financial Officer
ATTEST: HURON INSURANCE COMPANY
/s/XXXXX X. XXXXX BY: /s/XXXXXX X. XXXXXXX, XX
------------------------- ----------------------------------------
Xxxxx X. Xxxxx, Secretary Xxxxxx X. Xxxxxxx, XX,
Chairman, President & CEO
ATTEST: HARLEYSVILLE INSURANCE COMPANY OF NEW JERSEY
/s/XXXXX X. XXXXX BY: /s/XXXXXXX X. XXXXX
------------------------- ----------------------------------------
Xxxxx X. Xxxxx, Secretary Xxxxxxx X. Xxxxx, Vice President
ATTEST: HARLEYSVILLE-ATLANTIC INSURANCE COMPANY
/s/XXXXX X. XXXXX BY: /s/XXXXXXX X. XXXXX
------------------------- ----------------------------------------
Xxxxx X. Xxxxx, Secretary Xxxxxxx X. Xxxxx, Vice President
ATTEST: WORCESTER INSURANCE COMPANY
/s/XXXXX X. XXXXX BY: /s/XXXX X. XXXXXXX
------------------------- ----------------------------------------
Xxxxx X. Xxxxx, Secretary Xxxx X. Xxxxxxx, Treasurer
ATTEST: MID-AMERICA INSURANCE COMPANY
/s/XXXXX X. XXXXX BY: /s/XXXXXX X. XXXXXXX, XX
------------------------- ----------------------------------------
Xxxxx X. Xxxxx, Secretary Xxxxxx X. Xxxxxxx, XX,
Chairman, President & CEO
ATTEST: NEW YORK CASUALTY INSURANCE COMPANY
/s/XXXXX X. XXXXX BY: /s/XXXXXXX X. XXXXX
------------------------- ----------------------------------------
Xxxxx X. Xxxxx, Secretary Xxxxxxx X. Xxxxx, Vice President
ATTEST: GREAT OAKS INSURANCE COMPANY
/s/XXXXX X. XXXXX BY: /s/XXXXXX X. XXXXX
------------------------- ----------------------------------------
Xxxxx X. Xxxxx, Secretary Xxxxxx X. Xxxxx, Assistant Treasurer
ATTEST: PENNLAND INSURANCE COMPANY
/s/XXXXX X. XXXXX BY: /s/XXXXXX X. XXXXXXXX, XX.
------------------------- ----------------------------------------
Xxxxx X. Xxxxx, Secretary Xxxxxx X. Xxxxxxxx, Xx., Vice President
ATTEST: LAKE STATES INSURANCE COMPANY
/s/XXXXX X. XXXXX BY: /s/XXXXXX X. XXXXX
------------------------- ----------------------------------------
Xxxxx X. Xxxxx, Secretary Xxxxxx X. Xxxxx, Vice President
ATTEST: MINNESOTA FIRE AND CASUALTY COMPANY
/s/XXXXX X. XXXXX BY: /s/XXXX X. XXXXXXX
------------------------- ----------------------------------------
Xxxxx X. Xxxxx, Secretary Xxxx X. Xxxxxxx, Treasurer
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EXHIBIT I
TO THE
NINTH AMENDMENT
TO THE
PROPORTIONAL REINSURANCE AGREEMENT
POOL PARTICIPANTS POOL PARTICIPATIONS
----------------- -------------------
Harleysville Mutual Insurance Company 23%
Harleysville-Atlantic Insurance Company 5%
Huron Insurance Company 18%
Harleysville Insurance Company of New Jersey 19%
Mid-America Insurance Company 1%
New York Casualty Insurance Company 2%
Worcester Insurance Company 15%
Great Oaks Insurance Company 1%
Pennland Insurance Company 5%
Lake States Insurance Company 8%
Minnesota Fire and Casualty Company 3%
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