No. 3525-0090
CASUALTY EXCESS OF LOSS
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REINSURANCE AGREEMENT
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between
SELECTIVE INSURANCE COMPANY OF AMERICA
SELECTIVE WAY INSURANCE COMPANY
SELECTIVE INSURANCE COMPANY OF THE SOUTHEAST
SELECTIVE INSURANCE COMPANY OF SOUTH CAROLINA
EXCHANGE INSURANCE COMPANY
and
VARIOUS INSURANCE AND/OR
REINSURANCE COMPANIES
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No. 3525-0090
TABLE OF CONTENTS
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ARTICLE PAGE
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I RETENTION OF COMPANY AND LIABILITY
OF REINSURER 1
II EXHIBITS COVERED 2
III BUSINESS COVERED AND GOVERNING
GUIDELINES 2
IV TERRITORY 3
V EXCLUSIONS 3
VI DEFINITIONS 5
VII ULTIMATE NET LOSS 7
VIII WARRANTIES 8
IX CLAIMS 9
X EXTRA CONTRACTUAL OBLIGATIONS 9
XI SUBROGATION AND SALVAGE 10
XII ORIGINAL CONDITIONS 11
XIII RESERVES AND TAXES 11
XIV INSOLVENCY CLAUSE 11
XV ARBITRATION 12
XVI OFFSET AND SECURITY CLAUSE 14
XVII SELF-INSURED OBLIGATIONS 15
XVIII ERRORS AND OMISSIONS 15
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No. 3525-0090
TABLE OF CONTENTS
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ARTICLE PAGE
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XIX ACCESS TO RECORDS 16
XX COMMENCEMENT AND TERMINATION 16
XXI SURVIVORSHIP CLAUSE 17
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No. 3525-0090
CASUALTY EXCESS OF LOSS
REINSURANCE AGREEMENT
---------------------
THIS AGREEMENT made and entered into by and between SELECTIVE INSURANCE
COMPANY OF AMERICA and SELECTIVE WAY INSURANCE COMPANY both of Branchville,
New Jersey and SELECTIVE INSURANCE COMPANY OF THE SOUTHEAST and SELECTIVE
INSURANCE COMPANY OF SOUTH CAROLINA, both of Charlotte, North Carolina, and
EXCHANGE INSURANCE COMPANY, Buffalo, New York (herein and therein
collectively referred to as the "Company") and various insurance and/or
reinsurance companies and/or underwriting members of Lloyd's (hereinafter
referred to as the "Reinsurers") one of whom is the "Subscribing Reinsurer"
whose name appears on the Interests and Liabilities Agreement attaching to
and forming a part of this Contract.
WITNESSETH:
The Reinsurer hereby reinsures the Company to the extent and on the
terms and conditions and subject to the exceptions, exclusions and
limitations hereinafter set forth and nothing hereinafter shall in any manner
create any obligations or establish any rights against the Reinsurer in favor
of any third parties or any persons not parties to this Agreement.
ARTICLE I
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RETENTION OF COMPANY AND LIABILITY OF REINSURER
-----------------------------------------------
The retention of the Company and the liability of the Reinsurer and all
other benefits accruing to the Company, as provided in this Agreement or any
amendments thereof, shall apply to the parties comprising the Company as a
group and not separately to each of the parties. Any payments by the
Reinsurer to any of the parties comprising the Company shall discharge the
Reinsurer's liability under this Agreement.
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No. 3525-0090
ARTICLE II
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EXHIBITS COVERED
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The Company will reinsure with the Reinsurer and the Reinsurer will
accept the reinsurance from the Company as set forth in Exhibits A, B, C, D,
E and F which are attached hereto and made a part of this Agreement, such
Exhibits being entitled for purposes of identification as follows:
EXHIBIT A -FIRST CASUALTY EXCESS OF LOSS
EXHIBIT B -SECOND CASUALTY EXCESS OF LOSS
EXHIBIT C -THIRD CASUALTY EXCESS OF LOSS
EXHIBIT D -FOURTH CASUALTY EXCESS OF LOSS
EXHIBIT E - FIFTH CASUALTY EXCESS OF LOSS
EXHIBIT F -SIXTH CASUALTY EXCESS OF LOSS
ARTICLE III
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BUSINESS COVERED AND GOVERNING GUIDELINES
-----------------------------------------
(a) Except as may be modified herein, it is understood and agreed that
this Agreement shall apply to all policies and binders underwritten by the
Company and defined by the Company as Casualty, Workers Compensation and
Umbrella business, and classified as Lines of Business in the Company's
Annual Statement as follows:
Lines of Business
-----------------
Liability Coverages Under:
Farmowners Multiple Peril
Homeowners Multiple Peril
Commercial Multiple Peril
Workers Compensation
Other Liability
Products Liability
Private Passenger Auto Liability
Commercial Auto Liability
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No. 3525-0090
(b) In addition to the terms and conditions contained herein, it is
specifically understood and agreed that the business subject to recoveries
under this Agreement and the Exhibits attached shall be limited to business
which is written in accordance with the Company's SBU Guidelines. Any change
in Company underwriting philosophy which significantly impacts the Company's
SBU Guidelines shall be discussed with the lead Reinsurer.
ARTICLE IV
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TERRITORY
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This Agreement shall follow the territorial coverage granted by the
Company under its original policies reinsured hereunder.
ARTICLE V
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EXCLUSIONS
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(a) The reinsurance provided under this Agreement is subject to the
exclusions as set forth below unless submitted by the Company to the
Reinsurer for inclusion hereunder.
(b) This Agreement does not apply to:
1. Reinsurance assumed by the Company; however, this exclusion
shall not relate to reinsurance of Self-Insured Retention Groups or Risk
Retention Groups and inter-company pooling arrangements.
2. All business derived from any Pool, Association, Joint
Underwriting Association, Syndicate, Exchange, Plan or other
facility directly as a member, subscriber or participant, or
indirectly by way of reinsurance, except for Workers
Compensation Assigned Risk Plan in New Jersey. However, this
exclusion shall not apply to individual automobile assigned
risks, including limited assignment distribution and
commercial limited assignment distribution assigned to the
Company nor shall it apply to any voluntary Governmental
pools.
3. Any economic performance insurance written as such, including
but not limited to financial guarantee covers, contract
frustration
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No. 3525-0090
covers, efficacy covers, credit risk covers, political risk
covers or residual value covers.
4. Liability of the Company arising from its participation or
membership, whether voluntary or involuntary, in any
Insolvency Fund, including any Guarantee Fund, Association,
Pool, Plan or other facility which provides for the assessment
of, payment by, or assumption by the company of a part or the
whole of any claims, debt, charge, fee, or other obligations
of an insured or its successors or assigns, which has been
declared insolvency by any authority having jurisdiction.
5. The Company's liability for punitive, exemplary or
consequential damages or compensatory damages resulting from
an action of an insured or assignee against the Company,
except as provided under Self-Insured Obligations or Extra
Contractual Obligations.
6. Policies issued by the Company to insurance or reinsurance
companies (each hereinafter referred to as "insurer"), other
than Self-Insured Obligations, which provides insurance
against liability of the insurer for any damages resulting
from alleged or actual tortious conduct by the insurer in the
handling of claims made against any of its policyholders or in
the handling of any other business matters with any of its
policyholders.
7. Liability excluded by provisions of the following clauses.
The word "Reassured" therein means "Company."
Nuclear Incident Exclusion Clause
Liability - Reinsurance - No. 1B
Nuclear Incident Exclusion Clause Reinsurance - No. 4
Nuclear Energy Risks Exclusions Clause (Reinsurance) (1994)
(Worldwide excluding USA and Canada)
8. Operations employing the process of nuclear fission or fusion
or handling of radioactive material. This exclusion does not
apply to liability arising out of the use of x-ray or related
equipment by medical professionals.
9. Atomic Energy Commission projects and operations conducted
under license from the Atomic Energy Commission.
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No. 3525-0090
10. War, whether or not declared, or any act or condition incident
to war. War includes, but is not limited to, civil war,
insurrection, rebellion or revolution.
Reinsurance as is afforded by this Agreement shall apply to any risks
excluded above until discovery by a member of the underwriting
department of the Home Office of the Company of the existence of such
risk and for 30 days thereafter, and shall then cease unless, within
such 30 day period, the Company has received from the Lead Reinsurer
written notice of their approval of such risk.
ARTICLE VI
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DEFINITIONS
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(a) The term "loss occurrence" as used in this Agreement means each
accident or occurrences or series of accidents or occurrences arising out of
one event, provided that as respects:
1. Products Liability (bodily injury and property damage), "loss
occurrence" means the sum of all damages arising from the
consumption of, use of, or exposure to each insured's
product(s) during each policy year, which emanate from or are
traceable to the same causative agency.
2. Third Party Bodily Injury or Property Damage Liability, other
than Automobile and Products, "loss occurrence" means the sum
of all damages sustained by each insured during each policy
year arising from or traceable to a continuous or repeated
exposure to the same causative agency.
(i) If the date of loss occurrence under items 1. and 2.
above cannot be specifically determined, the date of loss
occurrence shall be the inception date of the policy
reinsured hereunder, where such policy shall be deemed to
be in effect not more than 12 calendar months from
inception.
3. Occupational Disease, "loss occurrence" means each employee
contracting a disease or cumulative injury for which the
employer (insured) is liable.
(i) The date of loss occurrence under item 3. above shall be
the date that the medical expense reimbursement or
compensation indemnity is first paid to the employee by
the Company.
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No. 3525-0090
(ii) If an Occupational Disease of the same specific kind or
class, which is traceable to the same causative agency,
is contracted by two or more employees and the dates of
the individual loss occurrences, as defined in paragraph
(i) of item 3., are within the same policy year, then
such individual loss occurrences shall be accumulated and
deemed one loss occurrence during that policy year and
the date of loss occurrence shall be the inception date
of the policy. Such policy shall be deemed to be in
effect not more than 12 calendar months from inception.
4. If policies which respond on a "claims made" basis are
involved in the same event with other "occurrence" and/or
"claims made" policies the date of the event shall be
determined as follows:
(i) If an "occurrence" policy is involved, the date of the
event shall be the date as determined under the
"occurrence" policy,(or as stated above), or,
(ii) If no "occurrence" policy is identified as being
involved, then the date of the event will be the date the
first claim is made under the "claims made" policy. If
the first claim from an event is under an Extended
Reporting Period Endorsement, the date of the event shall
be the first date the first claim is made.
5. Subject to the provisions of items (a)2.(i), 3.(i) and 3.(ii)
under this Article, if only occurrence policies are involved,
then the date of the event shall be the date as determined
under that or those policy(ies).
(b) The term "claim(s) made" as used herein shall mean all claims under
policies classified by the Company as such and for which all claims are
submitted by the original insured within the period of time prescribed by the
Company in the policy.
(c) The term "policy year" means each annual period the policy is in
effect. Policies in effect for a period longer than one year shall be deemed
to have separate policy years.
(d) The term "gross net written premium income" means gross subject
premiums, deposits, advance premiums and additional premiums less return
premiums and
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No. 3525-0090
less premiums for reinsurance ceded by the Company which inures to the
benefit of the Reinsurer under this Agreement.
(e) The term "gross net earned premium income" means the Company's
gross net premium written income written during the period for which
computation is being made, plus the gross net unearned premiums at the
beginning of the period, less the gross net unearned premiums at the end of
the period; said unearned premiums to be computed on the monthly pro rata
basis.
(f) The term "policies" means each of the Company's binders, policies,
contracts, cessions and certificates providing insurance on the perils and
Classes of Insurance covered hereunder.
(g) Subject to the provisions of the Ultimate Net Loss Clause,
Declaratory Judgment Expenses means expenses paid by the Company in the
investigation, analysis, evaluation or resolution of litigation of coverage
issues between the Company and any other party to determine if there is
coverage under a policy issued by the Company and therefore reinsured by this
Agreement for a specific claim or claims.
(h) The term "Agreement Year" as used in this Agreement shall mean each
12 month period ending on June 30. The first Agreement Year will be the
period from July 1, 1996 to June 30, 1997.
ARTICLE VII
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ULTIMATE NET LOSS
-----------------
(a) The term "Ultimate Net Loss" as used in this Agreement means the
sum actually paid by the Company in settlement of losses for which it is held
liable, including Declaratory Judgment Expenses in accordance with the
provisions of paragraph (g) of Article VI, Definitions, Extra Contractual
Obligations in accordance with the provisions of Article X, and all expenses
incurred by the Company in settlement or defense of claims, including taxed
court costs, pre-judgment and post-judgment interest, and loss expenses
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No. 3525-0090
incurred in the investigation, adjustment, litigation, defense and settlement
of claims made against the Company under the policies reinsured hereunder.
(b) Recoveries, salvages and claims upon other reinsurance which inures
to the benefit of the Reinsurer under this Agreement, whether collectible or
not, shall be deducted in arriving at the "ultimate net loss."
(c) All office expenses of the Company and all salaries and expenses of
its officials and employees are excluded under this Agreement.
(d) In the event of the insolvency of the Company, "ultimate net loss"
means the amount of loss which the Company has incurred or for which it is
liable, and payment by the Reinsurer shall be made to the liquidator,
receiver or statutory successor of the Company in accordance with the
provisions of Article XIV of this Agreement.
(e) In calculating the amount of any loss hereunder and also in
computing the amount or amounts in excess of which this Agreement attaches,
only loss or losses in respect of that portion of any insurance or
reinsurance agreement which the company retains net for its own account shall
be included.
(f) The amount of the Reinsurers' liability hereunder in respect to any
loss or losses shall not be increased by reason of the inability of the
Company to collect from any other reinsurers whether specific or general any
amounts which may have become due from them whether such inability arises
from the insolvency of such other reinsurers or otherwise.
ARTICLE VIII
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WARRANTIES
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It is warranted by the Company that the Maximum any one Life-Workers
Compensation Recoverable under this Treaty shall be $20,000,000.
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ARTICLE IX
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CLAIMS
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(a) The Company shall advise the Reinsurer promptly of all claims and
any subsequent developments pertaining thereto of any claim or loss reserved
at 50% or more of the retention under this Agreement and any claim for which
a bad faith action has been filed.
(b) The Company has the obligation to investigate and, to the extent
that may be required by the policies reinsured hereunder, defend any claim
affecting this reinsurance and to pursue such claim to final determination.
(c) It is understood that when so requested the Company will afford the
Reinsurer an opportunity to be associated with the Company at the expense of
the Reinsurer in the defense or control of any claim or suit or proceeding
involving this reinsurance; and the Company and the Reinsurer shall cooperate
in every respect in the defense of such suit or claim or proceeding.
(d) Any and all payments made by the Company in settlement of loss or
losses whether in payment of an award or verdict or in the satisfaction of a
judgment in any Court against the insured or the Company or made voluntarily
by the Company before judgment, in full settlement or as a compromise, shall
be unconditionally binding upon the Reinsurer and amounts falling to the
share of the Reinsurer shall be immediately payable to the Company by them
upon reasonable evidence of the amount paid or to be paid by the Company
being presented to the Reinsurer by the Company.
(e) Inadvertent error in or delay or omission of any such claim
notifications shall not in any way prejudice the rights of the Company under
this Agreement.
ARTICLE X
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EXTRA CONTRACTUAL OBLIGATIONS
-----------------------------
(a) The Agreement shall protect the Company within the limits hereof,
where ultimate net loss includes Extra Contractual Obligations.
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No. 3525-0090
(b) "Extra Contractual Obligations" are defined as those liabilities
not covered under any other provision of this agreement, which arise from the
handling of any claim on business covered hereunder (including awards to a
third party claimant in excess of the Company's policy limit)such liabilities
arising because of, but not limited to the following: failure by the company
to settle within the policy limit, or by reason of alleged or actual
negligence, fraud or bad faith in rejecting an offer of settlement or in the
preparation of the defense or in the trial of any action against its insured
or in the preparation or prosecution of an appeal consequent upon such
action.
(c) The date on which an Extra Contractual Obligation is incurred by
the Company shall be deemed, in all circumstances, to be the date of the
original occurrence.
(d) This article shall not apply where the loss has been incurred due
to the fraud of a member of the Board of Directors or a corporate officer of
the Company acting individually or collectively or in collusion with any
individual or corporation or any other organization or party involved in the
presentation, defense or settlement of any claim covered hereunder.
(e) Recoverables from any form of insurance or reinsurance which
protects the Company against claims which are subject matter of this clause
will inure to the benefit of the reinsurer and shall be deducted in arriving
at the amount of the Company's ultimate net loss.
ARTICLE XI
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SUBROGATION AND SALVAGE
-----------------------
(a) Any recoveries, salvages or reimbursements applying to risks
covered under this Agreement shall always be used to reimburse the excess
carriers (from the last to the first, beginning with the carrier of the last
excess), according to their participation, before being used in any way to
reimburse the Company for its primary loss.
(b) All salvages, recoveries or reimbursements, after deduction of
expenses applicable thereto, recovered or received subsequent to a loss
settlement under this
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No. 3525-0090
Agreement shall be applied as if recovered or received prior to the aforesaid
settlement and all necessary adjustments shall be made by the parties hereto,
provided always, that nothing in this clause shall be construed to mean that
losses under this Agreement are not recoverable until the Company's ultimate
net loss has been ascertained.
ARTICLE XII
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ORIGINAL CONDITIONS
-------------------
The liability of the Reinsurer shall follow the insurance liability of
the Company in every case and shall be subject in all respects to all the
general and special stipulations, clauses, waivers and modifications of the
Company's policy, binder or other undertaking, and any endorsements thereon,
except as may be provided herein. However, nothing herein shall in any
manner create any obligations by the Reinsurer or establish any rights
against the Reinsurer in favor or any insured or insureds under the original
policies issued by the Company.
ARTICLE XIII
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RESERVES AND TAXES
------------------
(a) The Reinsurer shall maintain legal reserves with respect to
unearned premiums and claims hereunder. The Company shall furnish to the
Reinsurer semi-annually a list of outstanding claims in which the Reinsurer
is interested, showing the amount of loss reserves set up by the Company in
respect of both the gross amount and the Reinsurer's share of each and every
such claim.
(b) The Company will be liable for all taxes on premiums reported to
the Reinsurer hereunder and will reimburse the Reinsurer for such taxes where
the Reinsurer is required to pay the same.
ARTICLE XIV
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INSOLVENCY CLAUSE
-----------------
In the event of the insolvency of the Company and the appointment of a
conservator, liquidator or statutory successor, the reinsurance provided by
this Agreement
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shall be payable by the Reinsurer directly to the Company or to its
liquidator, receiver or statutory successor on the basis of the liability of
the Company under the contract or contracts reinsured. Subject to the right
of offset and the verification of coverage, the Reinsurer shall pay its share
of the loss without diminution because of the insolvency of the Company. The
liquidator, receiver or statutory successor of the Company shall give written
notice of the pendency of each claim against the Company on a policy or bond
reinsured within a reasonable time after such claim is filed in the
insolvency proceeding. During the pendency of such claim, the Reinsurer may,
at its own expense, investigate such claim and interpose in the proceeding
where such claim is to be adjudicated any defense or defenses which it may
deem available to the Company, its liquidator or receiver or statutory
successor. Subject to court approval, any expense thus incurred by the
Reinsurer shall be chargeable against the Company as part of the expense of
liquidation to the extent of such proportionate share of the benefit as shall
accrue to the Company solely as a result of the defense undertaken by the
Reinsurer. The reinsurance shall be payable as set forth above except where
this Agreement specifically provides for the payment of reinsurance proceeds
to another party in the event of the insolvency of the Company.
ARTICLE XV
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ARBITRATION
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(a) As a condition precedent to any right of action hereunder, any
dispute arising out of this Agreement shall be submitted to the decision of a
board of arbitration composed of two arbitrators and an umpire, meeting in
Branchville, New Jersey unless otherwise agreed.
(b) The members of the board of arbitration shall be active or retired
disinterested officials of insurance or reinsurance companies. Each party
shall appoint its arbitrator and the two arbitrators shall choose an umpire
before instituting the hearing. If the respondent fails to appoint its
arbitrator within four weeks after being requested to do so by the claimant,
the latter shall also appoint the second arbitrator. If the two arbitrators
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No. 3525-0090
fail to agree upon the appointment of an umpire within four weeks after their
nominations, each of them shall name three, of whom the other shall decline
two and the decision shall be made by drawing lots.
(c) The claimant shall submit its initial brief within 20 days from
appointment of the umpire. The respondent shall submit its brief within 20
days after receipt of the claimant's brief and the claimant may submit a
reply brief within l0 days after receipt of the respondent's brief.
(d) The board shall make its decision with regard to the custom and
usage of the insurance and reinsurance business. The board shall issue its
decision in writing based upon a hearing in which evidence may be introduced
without following strict rules of evidence but in which cross examination and
rebuttal shall be allowed. The board shall make its decision within 60 days
following the termination of the hearings unless the parties consent to an
extension. The majority decision of the board shall be final and binding
upon all parties to the proceeding. Judgment may be entered upon the award
of the board in any court having jurisdiction thereof.
(e) If more than one reinsurer is involved in the same dispute, all
such reinsurers shall constitute and act as one party for purposes of this
clause and communications shall be made by the Company to each of the
reinsurers constituting the one party, provided, however, that nothing
therein shall impair the rights of such reinsurers to assert several, rather
than joint defenses or claims, nor be construed as changing the liability of
the reinsurers under the terms of this Agreement from several to joint.
(f) Each party shall bear the expense of its own arbitrator and shall
jointly and equally bear with the other party the expense of Arbitration.
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ARTICLE XVI
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OFFSET AND SECURITY CLAUSE
--------------------------
(a) Each party hereto has the right, which may be exercised at any
time, to offset any amounts, whether on account of premiums or losses or
otherwise, due from such party to another party under this Agreement or any
other reinsurance agreement heretofore or hereafter entered into between
them, against any amounts, whether on account of premiums or losses or
otherwise due from the latter party to the former party. The party asserting
the right of offset may exercise this right, whether as assuming or ceding
insurer or in both roles in the relevant agreement or agreements.
(b) Each party hereby assigns and pledges to the other party (or to
each other party, if more than one) all of its rights under this Agreement to
receive premium or loss payments at any time from such other party
("Collateral"), to secure its premium or loss obligations to such other party
at any time under this Agreement and any other reinsurance agreement
heretofore or hereinafter entered into by and between them ("Secured
Obligations"). If at any time a party is in default under any Secured
Obligation or shall be subject to any liquidation, rehabilitation,
reorganization or conservation proceeding, each other party shall be entitled
in its discretion, to apply, or to withhold for the purpose of applying in
due course, any Collateral assigned and pledged to it by the former party and
otherwise to realize upon such Collateral as security for such Secured
Obligations.
(c) The security interest described herein, and the term "Collateral,"
shall apply to all payments and other proceeds in respect of the rights
assigned and pledged. A party's security interest in Collateral shall be
deemed evidenced only by the counterpart of this Agreement delivered to such
party.
(d) Each right under this Article is a separate and independent right,
exercisable, without notice or demand, alone or together with other rights,
in the sole election of the party entitled thereto, and no waiver, delay, or
failure to exercise, in respect of any right, shall constitute a waiver of
any other right. The provisions of this Article
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No. 3525-0090
shall survive any cancellation or other termination of this Agreement. In
the event of the insolvency of either party to this agreement, then offsets
shall only be allowed to the extent permitted by the applicable law of the
insolvent party's "state of domicile."
ARTICLE XVII
------------
SELF-INSURED OBLIGATIONS
------------------------
(a) As respects all business the subject matter hereof, where the
coverage has been agreed upon between the Company and the Reinsurer, this
Agreement shall cover all obligations of the Company assumed by it as a self-
insured (or self-insured obligations in excess of any valid and collectible
insurance available to the Company) to the same extent as if all types of
insurance covered by this Agreement were afforded under the broadest forms of
agreements issued by the Company.
(b) An insurance or reinsurance wherein the Company hereby reinsured
and/or its affiliated and/or subsidiary Companies are named as the Insured or
Reinsured party, either alone or jointly with some other party, shall be
deemed to be an insurance or reinsurance coming within the scope of this
Agreement, notwithstanding that no legal liability may arise in respect
thereof by reason of the fact that the Company hereby reinsured and/or its
affiliated and/or subsidiary Companies are named as the Insured or Reinsured
party or one of the Insured or Reinsured parties.
ARTICLE XVIII
-------------
ERRORS AND OMISSIONS
--------------------
Errors or omissions made in connection with this Contract shall not
relieve either party from any liability which would have attached had such
error or omission not occurred, provided always that such error or omission
shall be rectified as soon as possible after discovery by the Company's Home
Office. However, the liability of the Reinsurers under this Contract or any
exhibits or endorsements attached hereto shall in no event exceed the limits
specified herein, nor be extended to cover any risks, perils or classes of
insurance or reinsurance generally or specifically excluded herein, unless
specifically
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No. 3525-0090
reported to the Reinsurers for acceptance hereunder within 30
days after discovery by the Company's Home Office.
ARTICLE XIX
-----------
ACCESS TO RECORDS
-----------------
The Company shall place at the disposal of the Reinsurer and the
Reinsurer shall have the right to inspect, through its authorized
representatives, at all reasonable times during the currency of this
Agreement and thereafter, the books, records and papers of the Company
pertaining to the reinsurance provided hereunder and all claims made in
connection therewith.
ARTICLE XX
----------
COMMENCEMENT AND TERMINATION
----------------------------
(a) This Agreement and the Exhibits attached hereto shall take effect
as of 12:01 A.M., July 1, 1996 and shall, except as otherwise stipulated
herein or in any Exhibit hereto or any Endorsement hereof, continue in full
force and effect until terminated as hereinafter provided.
(b) This Agreement or any of the Exhibits may be cancelled at any time
by mutual agreement or as of any June 30 or December 31 by either party
giving 90 days notice to the other stating when thereafter cancellation shall
be effective.
(c) In the event of cancellation, the Reinsurer shall remain liable for
losses occurring or claims made prior to such cancellation date, but all
liability shall terminate hereunder as to losses occurring in respect of
occurrence policies, or claims made, in respect of claims made policies
subsequent to the cancellation date.
(d) At the sole option of the Company, the Reinsurer shall remain
liable for all policies coming within the terms of this Contract with respect
to all Loss Occurrences that may occur on any and all of the Company's
Policies that are in force at the termination date of the Contract until the
Policies' scheduled anniversary, expiration, cancellation or nonrenewal,
which shall occur first, provided, however, that in no event shall the
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Reinsurer be liable under this contract for any loss more than 12 months.
Should the Company choose the run-off option, the Company and Lead Reinsurer
shall mutually agree to the rate at which the reinsurance premium for said
run-off period will be calculated. This agreed rate shall be multiplied
against the Gross Net Earned Premium Income for the run-off period.
(e) Every notice of termination shall be given by certified letter
addressed to the intended recipient at such recipient's address. In
determining whether the requisite number of days' notice has been given in
any case, the date of termination shall be counted but the date of mailing
shall not.
(f) Notwithstanding the termination of this Agreement as hereinabove
provided, the provisions of this Agreement shall continue to apply to all
unfinished business hereunder to the end that all obligations and liabilities
incurred by each party hereunder prior to such termination shall be fully
performed and discharged.
ARTICLE XXI
-----------
SURVIVORSHIP CLAUSE
-------------------
If any provision of this Agreement shall be rendered illegal or
unenforceable by the laws, regulations or public policy of any state, such
provision shall be considered void in such state, but this shall not affect
the validity or enforceability of any other provision of this Agreement or
the enforceability of such provision in any other jurisdiction.
-17-
PAGE
No. 3525-0090
EXHIBIT A
EXHIBIT A
---------
FIRST CASUALTY EXCESS OF LOSS
-----------------------------
Section 1
---------
COVER
-----
The Reinsurer agrees to reimburse the Company, on an excess of loss
basis, for the amounts of ultimate net loss which the Company may pay as a
result of losses occurring on and after 12:01 A.M., July 1, 1996, as respects
policies in force at 12:01 A.M., Standard Time, July 1, 1996, and new and
renewal policies becoming effective on and after said date and subject to the
exclusions set forth in Article V of this Agreement and the limits set forth
in Section 2 of this Exhibit.
Section 2
---------
LIMITS OF COVER
---------------
Subject to the Limits and Retention hereof, the Reinsurers shall pay to
the Company the amount of Ultimate Net Loss up to $4,000,000 Ultimate Net
Loss each and every Loss Occurrence that takes place during the currency of
this Contract in excess of $1,000,000 Ultimate Net Loss in respect of each
and every Loss Occurrence.
Section 3
---------
REINSTATEMENT CLAUSE
--------------------
Each claim hereon reduces the amount of indemnity from the time of
occurrence of the loss by the sum paid, but any amount so exhausted is hereby
reinstated from the time of occurrence of the loss for no additional premium.
Section 4
---------
PREMIUM
-------
(a) The Company shall pay to the Reinsurers a deposit reinsurance
premium of $6,328,000 in equal quarterly installments of $1,582,000, payable
at July 1, October 1, January 1 and April 1.
-1-
PAGE
No. 3525-0090
EXHIBIT A
(b) Within 90 days after the end of each Agreement Year, the Company
shall furnish to the Reinsurers a statement of the Gross Net Earned Premium
Income of the Company for the Contract term and the reinsurance premium shall
be adjusted at a rate of 1.12% of the Company's Gross Net Earned Premium
Income. For the purposes of this calculation, 15% of the Company's earned
premium for Homeowners and Farmowners Policies and 35% for Businessowners
Policies shall be included. The debtor party shall immediately pay the
creditor the difference between the calculated premium and the deposit
premium payments. However, in no event shall the adjusted reinsurance
premium be less than $5,062,400.
Section 5
---------
REPORTS AND REMITTANCES
-----------------------
(a) The Company will provide the Reinsurer with all necessary data
respecting premiums and losses, including reserves thereon, as at dates and
on forms mutually acceptable to the Company and the Reinsurer.
(b) Payment by the Reinsurer of its proportion of losses and loss
adjustment expenses paid or to be paid by the Company will be made by the
Reinsurer to the Company within 15 days after proof of the amount paid or to
be paid by the Company is received by the Reinsurer. The Company may give
the Reinsurer written notice of its intention to pay a loss, equal to or
greater than $500,000 to the layer, on a certain date and may require the
receipt of payment of the Reinsurer's share of the loss by such date,
provided the Reinsurer in any event shall have a period of 48 hours after
receipt of said written notice to mail or otherwise dispatch the payment.
This Exhibit A is attached to and forms part of Reinsurance Agreement
No. 3525-0090 issued to the SELECTIVE INSURANCE COMPANY OF AMERICA and
SELECTIVE WAY INSURANCE COMPANY and SELECTIVE INSURANCE COMPANY OF THE
SOUTHEAST and SELECTIVE INSURANCE COMPANY OF SOUTH CAROLINA and EXCHANGE
INSURANCE COMPANY.
-2-
PAGE
No. 3525-0090
EXHIBIT B
EXHIBIT B
---------
SECOND CASUALTY EXCESS OF LOSS
------------------------------
Section 1
---------
COVER
-----
The Reinsurer agrees to reimburse the Company, on an excess of loss
basis, for the amounts of ultimate net loss which the Company may pay as a
result of losses occurring on and after 12:01 A.M., July 1, 1996, as respects
policies in force at 12:01 A.M., Standard Time, July 1, 1996, and new and
renewal policies becoming effective on and after said date and subject to the
exclusions set forth in Article V of this Agreement and the limits set forth
in Section 2 of this Exhibit.
Section 2
---------
LIMITS OF COVER
---------------
Subject to the Limits and Retention hereof, the Reinsurers shall pay to
the Company the amount of Ultimate Net Loss up to $7,000,000 Ultimate Net
Loss each and every Loss Occurrence that takes place during the currency of
this Contract in excess of $5,000,000 Ultimate Net Loss in respect of each
and every Loss Occurrence.
Section 3
---------
REINSTATEMENT CLAUSE
claim hereon reduces the amount of indemnity from the time of occurrence
of the loss by the sum paid, but any amount so exhausted is hereby reinstated
from the time of occurrence of the loss for no additional premium.
Section 4
---------
PREMIUM
-------
(a) The Company shall pay to the Reinsurers a deposit reinsurance
premium of $1,638,500 in equal quarterly installments of $409,625, payable at
July 1 and October 1, 1996, and January 1 and April 1, 1997.
-1-
PAGE
No. 3525-0090
EXHIBIT B
(b) Within 90 days after the end of each Agreement Year, the Company
shall furnish to the Reinsurers a statement of the Gross Net Earned Premium
Income of the Company for the Contract term and the reinsurance premium shall
be adjusted at a rate of .29% of the Company's Gross Net Earned Premium
Income. For the purposes of this calculation, 15% of the Company's earned
premium for Homeowners and Farmowners Policies and 35% for Businessowners
Policies shall be included. The debtor party shall immediately pay the
creditor the difference between the calculated premium and the deposit
premium payments. However, in no event shall the adjusted reinsurance
premium be less than $1,310,800.
Section 5
---------
REPORTS AND REMITTANCES
-----------------------
(a) The Company will provide the Reinsurer with all necessary data
respecting premiums and losses, including reserves thereon, as at dates and
on forms mutually acceptable to the Company and the Reinsurer.
(b) Payment by the Reinsurer of its proportion of losses and loss
adjustment expenses paid or to be paid by the Company will be made by the
Reinsurer to the Company within 15 days after proof of the amount paid or to
be paid by the Company is received by the Reinsurer. The Company may give
the Reinsurer written notice of its intention to pay a loss, equal to or
greater than $500,000 to the layer, on a certain date and may require the
receipt of payment of the Reinsurer's share of the loss by such date,
provided the Reinsurer in any event shall have a period of 48 hours after
receipt of said written notice to mail or otherwise dispatch the payment.
This Exhibit B is attached to and forms part of Reinsurance Agreement
No. 3525-0090 issued to the SELECTIVE INSURANCE COMPANY OF AMERICA and
SELECTIVE WAY INSURANCE COMPANY and SELECTIVE INSURANCE COMPANY OF THE
SOUTHEAST and SELECTIVE INSURANCE COMPANY OF SOUTH CAROLINA and EXCHANGE
INSURANCE COMPANY.
-2-
PAGE
No. 3525-0090
EXHIBIT C
EXHIBIT C
---------
THIRD CASUALTY EXCESS OF LOSS
-----------------------------
Section 1
---------
COVER
-----
The Reinsurer agrees to reimburse the Company, on an excess of loss
basis, for the amounts of ultimate net loss which the Company may pay as a
result of losses occurring on and after 12:01 A.M., July 1, 1996, as respects
policies in force at 12:01 A.M., Standard Time, July 1, 1996, and new and
renewal policies becoming effective on and after said date and subject to the
exclusions set forth in Article V of this Agreement and the limits set forth
in Section 2 of this Exhibit.
Section 2
---------
LIMITS OF COVER
---------------
Subject to the Limits and Retention hereof, the Reinsurers shall pay to
the Company the amount of Ultimate Net Loss up to $9,000,000 Ultimate Net
Loss each and every Loss Occurrence or that takes place during the currency
of this Contract in excess of $12,000,000 Ultimate Net Loss in respect of
each and every Loss Occurrence.
Section 3
---------
REINSTATEMENT
-------------
Each claim hereon reduces the amount of indemnity provided under this
Contract from the time of the loss occurrence by the amount paid. However,
the amount so reduced shall be immediately reinstated twice. For the first
full amount so reinstated there shall be no charge. For the next amount so
reinstated the Company shall pay the Reinsurer an additional premium
calculated at pro rata of the reinsurance earned premium payable under this
Exhibit. Such premium shall be pro rata as to the fraction of the face value
of the limit so reinstated and 100% as to time. Nevertheless, the
Reinsurer's liability
-1-
PAGE
No. 3525-0090
EXHIBIT C
hereunder shall never exceed $9,000,000 any one loss occurrence nor
$27,000,000 for all loss occurrences during the term of this Contract.
Section 4
---------
PREMIUM
-------
(a) The Company shall pay to the Reinsurers a deposit reinsurance
premium of $791,000 in equal quarterly installments of $197,750, payable at
July 1 and October 1, 1996, and January 1 and April 1, 1997.
(b) Within 90 days after the end of each Agreement Year, the Company
shall furnish to the Reinsurers a statement of the Gross Net Earned Premium
Income of the Company for the Contract term and the reinsurance premium shall
be adjusted at a rate of .14% of the Company's Gross Net Earned Premium
Income. For the purposes of this calculation, 15% of the Company's earned
premium for Homeowners and Farmowners Policies and 35% for Businessowners
Policies shall be included. The debtor party shall immediately pay the
creditor the difference between the calculated premium and the deposit
premium payments. However, in no event shall the adjusted reinsurance
premium be less than $632,800.
Section 5
---------
REPORTS AND REMITTANCES
-----------------------
(a) The Company will provide the Reinsurer with all necessary data
respecting premiums and losses, including reserves thereon, as at dates and
on forms mutually acceptable to the Company and the Reinsurer.
(b) Payment by the Reinsurer of its proportion of losses and loss
adjustment expenses paid or to be paid by the Company will be made by the
Reinsurer to the Company within 15 days after proof of the amount paid or to
be paid by the Company is received by the Reinsurer. The Company may give
the Reinsurer written notice of its intention to pay a loss, equal to or
greater than $500,000 to the layer, on a certain date and may require the
receipt of payment of the Reinsurer's share of the loss by such date,
-2-
PAGE
No. 3525-0090
EXHIBIT C
provided the Reinsurer in any event shall have a period of 48 hours after
receipt of said written notice to mail or otherwise dispatch the payment.
This Exhibit C is attached to and forms part of Reinsurance Agreement
No. 3525-0090 issued to the SELECTIVE INSURANCE COMPANY OF AMERICA and
SELECTIVE WAY INSURANCE COMPANY and SELECTIVE INSURANCE COMPANY OF THE
SOUTHEAST and SELECTIVE INSURANCE COMPANY OF SOUTH CAROLINA and EXCHANGE
INSURANCE COMPANY.
-3-
PAGE
No. 3525-0090
EXHIBIT D
EXHIBIT D
---------
FOURTH CASUALTY EXCESS OF LOSS
------------------------------
Section 1
---------
COVER
The Reinsurer agrees to reimburse the Company, on an excess of loss
basis, for the amounts of ultimate net loss which the Company may pay as a
result of losses occurring on and after 12:01 A.M., July 1, 1996, as respects
policies in force at 12:01 A.M., Standard Time, July 1, 1996, and new and
renewal policies becoming effective on and after said date and subject to the
exclusions set forth in Article V of this Agreement and the limits set forth
in Section 2 of this Exhibit.
Section 2
---------
LIMITS OF COVER
---------------
Subject to the Limits and Retention hereof, the Reinsurers shall pay to
the Company the amount of Ultimate Net Loss up to $9,000,000 Ultimate Net
Loss each and every Loss Occurrence that takes place during the currency of
this Contract in excess of $21,000,000 Ultimate Net Loss in respect of each
and every Loss Occurrence.
Section 3
---------
REINSTATEMENT
-------------
Each claim hereon reduces the amount of indemnity provided under this
Contract from the time of the loss occurrence by the amount paid. However,
the amount so reduced shall be immediately reinstated one time. For the
reinstated limit the Company shall pay the Reinsurer an additional premium
calculated at pro rata of the reinsurance earned premium payable under this
Exhibit. Such premium shall be pro rata as to the fraction of the face value
of the limit so reinstated and 100% as to time. Nevertheless, the
Reinsurer's liability hereunder shall never exceed $9,000,000 any one loss
occurrence nor $18,000,000 for all loss occurrences during the term of this
Contract.
-1-
PAGE
No. 3525-0090
EXHIBIT D
Section 4
---------
PREMIUM
-------
(a) The Company shall pay to the Reinsurers a deposit reinsurance
premium of $395,500 in equal quarterly installments of $98,875, payable at
July 1 and October 1, 1996, and January 1 and April 1, 1997.
(b) Within 90 days after the end of each Agreement Year, the Company
shall furnish to the Reinsurers a statement of the Gross Net Earned Premium
Income of the Company for the Contract term and the reinsurance premium shall
be adjusted at a rate of .07% of the Company's Gross Net Earned Premium
Income. For the purposes of this calculation, 15% of the Company's earned
premium for Homeowners and Farmowners Policies and 35% for Businessowners
Policies shall be included. The debtor party shall immediately pay the
creditor the difference between the calculated premium and the deposit
premium payments. However, in no event shall the adjusted reinsurance
premium be less than $316,400.
Section 5
---------
REPORTS AND REMITTANCES
-----------------------
(a) The Company will provide the Reinsurer with all necessary data
respecting premiums and losses, including reserves thereon, as at dates and
on forms mutually acceptable to the Company and the Reinsurer.
(b) Payment by the Reinsurer of its proportion of losses and loss
adjustment expenses paid or to be paid by the Company will be made by the
Reinsurer to the Company within 15 days after proof of the amount paid or to
be paid by the Company is received by the Reinsurer. The Company may give
the Reinsurer written notice of its intention to pay a loss, equal to or
greater than $500,000 to the layer, on a certain date and may require the
receipt of payment of the Reinsurer's share of the loss by such date,
provided the Reinsurer in any event shall have a period of 48 hours after
receipt of said written notice to mail or otherwise dispatch the payment.
-2-
PAGE
No. 3525-0090
EXHIBIT D
This Exhibit D is attached to and forms part of Reinsurance Agreement
No. 3525-0090 issued to the SELECTIVE INSURANCE COMPANY OF AMERICA and
SELECTIVE WAY INSURANCE COMPANY and SELECTIVE INSURANCE COMPANY OF THE
SOUTHEAST and SELECTIVE INSURANCE COMPANY OF SOUTH CAROLINA and EXCHANGE
INSURANCE COMPANY.
-3-
PAGE
No. 3525-0090
EXHIBIT E
EXHIBIT E
---------
FIFTH CASUALTY EXCESS OF LOSS
-----------------------------
Section 1
---------
COVER
-----
The Reinsurer agrees to reimburse the Company, on an excess of loss
basis, for the amounts of ultimate net loss which the Company may pay as a
result of losses occurring on and after 12:01 A.M., July 1, 1996, as respects
policies in force at 12:01 A.M., Standard Time, July 1, 1996, and new and
renewal policies becoming effective on and after said date and subject to the
exclusions set forth in Article V of this Agreement and the limits set forth
in Section 2 of this Exhibit.
Section 2
---------
LIMITS OF COVER
---------------
Subject to the Limits and Retention hereof, the Reinsurers shall pay to
the Company the amount of Ultimate Net Loss up to $10,000,000 Ultimate Net
Loss each and every Loss Occurrence that takes place during the currency of
this Contract in excess of $30,000,000 Ultimate Net Loss in respect of each
and every Loss Occurrence.
Section 3
---------
REINSTATEMENT
-------------
Each claim hereon reduces the amount of indemnity provided under this
Contract from the time of the loss occurrence by the amount paid. However,
the amount so reduced shall be immediately reinstated one time. For the
reinstated limit the Company shall pay the Reinsurer an additional premium
calculated at pro rata of the reinsurance earned premium payable under this
Contract. Such premium shall be pro rata as to the fraction of the face
value of the limit so reinstated and 100% as to time. Nevertheless, the
Reinsurer's liability hereunder shall never exceed $10,000,000 any one loss
occurrence nor $20,000,000 for all loss occurrences during the term of this
Contract.
-1-
PAGE
No. 3525-0090
EXHIBIT E
Section 4
---------
PREMIUM
-------
(a) The Company shall pay to the Reinsurers a deposit reinsurance
premium of $339,000 in equal quarterly installments of $84,750, payable at
July 1 and October 1, 1996, and January 1 and April 1, 1997.
(b) Within 90 days after the end of each Agreement Year, the Company
shall furnish to the Reinsurers a statement of the Gross Net Earned Premium
Income of the Company for the Contract term and the reinsurance premium shall
be adjusted at a rate of .06% of the Company's Gross Net Earned Premium
Income. For the purposes of this calculation, 15% of the Company's earned
premium for Homeowners and Farmowners Policies and 35% for Businessowners
Policies shall be included. The debtor party shall immediately pay the
creditor the difference between the calculated premium and the deposit
premium payments. However, in no event shall the adjusted reinsurance
premium be less than $271,200.
Section 5
---------
REPORTS AND REMITTANCES
-----------------------
(a) The Company will provide the Reinsurer with all necessary data
respecting premiums and losses, including reserves thereon, as at dates and
on forms mutually acceptable to the Company and the Reinsurer.
(b) Payment by the Reinsurer of its proportion of losses and loss
adjustment expenses paid or to be paid by the Company will be made by the
Reinsurer to the Company within 15 days after proof of the amount paid or to
be paid by the Company is received by the Reinsurer. The Company may give
the Reinsurer written notice of its intention to pay a loss, equal to or
greater than $500,000 to the layer, on a certain date and may require the
receipt of payment of the Reinsurer's share of the loss by such date,
provided the Reinsurer in any event shall have a period of 48 hours after
receipt of said written notice to mail or otherwise dispatch the payment.
-2-
PAGE
No. 3525-0090
EXHIBIT E
This Exhibit E is attached to and forms part of Reinsurance Agreement
No. 3525-0090 issued to the SELECTIVE INSURANCE COMPANY OF AMERICA and
SELECTIVE WAY INSURANCE COMPANY and SELECTIVE INSURANCE COMPANY OF THE
SOUTHEAST and SELECTIVE INSURANCE COMPANY OF SOUTH CAROLINA and EXCHANGE
INSURANCE COMPANY.
-3-
PAGE
No. 3525-0090
EXHIBIT F
EXHIBIT F
---------
SIXTH CASUALTY EXCESS OF LOSS
-----------------------------
Section 1
---------
COVER
-----
The Reinsurer agrees to reimburse the Company, on an excess of loss
basis, for the amounts of ultimate net loss which the Company may pay as a
result of losses occurring on and after 12:01 A.M., July 1, 1996, as respects
policies in force at 12:01 A.M., Standard Time, July 1, 1996, and new and
renewal policies becoming effective on and after said date and subject to the
exclusions set forth in Article V of this Agreement and the limits set forth
in Section 2 of this Exhibit.
Section 2
---------
LIMITS OF COVER
---------------
Subject to the Limits and Retention hereof, the Reinsurers shall pay to
the Company the amount of Ultimate Net Loss up to $10,000,000 Ultimate Net
Loss each and every Loss Occurrence that takes place during the currency of
this Contract in excess of $40,000,000 Ultimate Net Loss in respect of each
and every Loss Occurrence.
Section 3
---------
REINSTATEMENT
-------------
Each claim hereon reduces the amount of indemnity provided under this
Contract from the time of the loss occurrence by the amount paid. However,
the amount so reduced shall be immediately reinstated one time. For the
reinstated limit the Company shall pay the Reinsurer an additional premium
calculated at pro rata of the reinsurance earned premium payable under this
Contract. Such premium shall be pro rata as to the fraction of the face
value of the limit so reinstated and 100% as to time. Nevertheless, the
Reinsurer's liability hereunder shall never exceed $10,000,000 any one loss
occurrence nor $20,000,000 for all loss occurrences during the term of this
Contract.
-1-
PAGE
No. 3525-0090
EXHIBIT F
Section 4
---------
PREMIUM
-------
(a) The Company shall pay to the Reinsurers a deposit reinsurance
premium of $282,500 in equal quarterly installments of $70,625, payable at
July 1 and October 1, 1996, and January 1 and April 1, 1997.
(b) Within 90 days after the end of each Agreement Year, the Company
shall furnish to the Reinsurers a statement of the Gross Net Earned Premium
Income of the Company for the Contract term and the reinsurance premium shall
be adjusted at a rate of .05% of the Company's Gross Net Earned Premium
Income. For the purposes of this calculation, 15% of the Company's earned
premium for Homeowners and Farmowners Policies and 35% for Businessowners
Policies shall be included. The debtor party shall immediately pay the
creditor the difference between the calculated premium and the deposit
premium payments. However, in no event shall the adjusted reinsurance
premium be less than $226,000.
Section 5
---------
REPORTS AND REMITTANCES
-----------------------
(a) The Company will provide the Reinsurer with all necessary data
respecting premiums and losses, including reserves thereon, as at dates and
on forms mutually acceptable to the Company and the Reinsurer.
(b) Payment by the Reinsurer of its proportion of losses and loss
adjustment expenses paid or to be paid by the Company will be made by the
Reinsurer to the Company within 15 days after proof of the amount paid or to
be paid by the Company is received by the Reinsurer. The Company may give
the Reinsurer written notice of its intention to pay a loss, equal to or
greater than $500,000 to the layer, on a certain date and may require the
receipt of payment of the Reinsurer's share of the loss by such date,
provided the Reinsurer in any event shall have a period of 48 hours after
receipt of said written notice to mail or otherwise dispatch the payment.
-2-
PAGE
No. 3525-0090
EXHIBIT F
This Exhibit F is attached to and forms part of Reinsurance Agreement
No. 3525-0090 issued to the SELECTIVE INSURANCE COMPANY OF AMERICA and
SELECTIVE WAY INSURANCE COMPANY and SELECTIVE INSURANCE COMPANY OF THE
SOUTHEAST and SELECTIVE INSURANCE COMPANY OF SOUTH CAROLINA and EXCHANGE
INSURANCE COMPANY.
-3-
PAGE
INTERESTS AND LIABILITIES CONTRACT
----------------------------------
(hereinafter referred to as the "Contract")
to the
CASUALTY EXCESS OF LOSS REINSURANCE AGREEMENT
---------------------------------------------
(hereinafter referred to as the "Agreement")
between
SELECTIVE INSURANCE COMPANY OF AMERICA
SELECTIVE WAY INSURANCE COMPANY
SELECTIVE INSURANCE COMPANY OF THE SOUTHEAST
SELECTIVE INSURANCE COMPANY OF SOUTH CAROLINA
EXCHANGE INSURANCE COMPANY
(hereinafter referred to either individually or collectively
as the "Company")
and
VARIOUS INSURANCE AND/OR REINSURANCE COMPANIES
(hereinafter referred to as the "Subscribing Reinsurer")
It is mutually agreed by and between the Company on the one part and the
Subscribing Reinsurer on the other part that the Subscribing Reinsurer's
share in the interests and liabilities of the Reinsurers as set forth in the
Contract, to which this Agreement is attached, shall be for %.
The share of the Subscribing Reinsurer in the interests and liabilities of
the Reinsurers in respect of said Contract shall be separate and apart from
the shares of such other subscribing reinsurers, if any, to said Contract.
The interests and liabilities of the Subscribing Reinsurer shall not be joint
with those of such other subscribing reinsurers and in no event shall the
Subscribing Reinsurer participate in the interests and liabilities of such
other subscribing reinsurers.
This Agreement shall become effective commencing 12:00 a.m., Eastern Standard
Time, July 1, 1996, in respect of business in force at such date or business
incepting, renewing or having an anniversary date on and after such date, and
shall remain in effect until canceled according to the provisions of the
Commencement and Termination Article.
-1-
The interests and liabilities of the Subscribing Reinsurer therein may not be
changed, altered and amended unless such change, alteration and amendment is
evidenced by Endorsement to this Agreement executed by the Company and the
Subscribing Reinsurer.
In Witness Whereof, the parties hereto have caused this Agreement to be
executed by their duly authorized representatives this 17th day of
March, 1997.
SELECTIVE INSURANCE COMPANY OF AMERICA
SELECTIVE WAY INSURANCE COMPANY
SELECTIVE INSURANCE COMPANY OF THE SOUTHEAST
SELECTIVE INSURANCE COMPANY OF SOUTH CAROLINA
EXCHANGE INSURANCE COMPANY
/s/ Xxxxx Xxxxxxxx
------------------
Xxxxx Xxxxxxxx
and on this 19th Day of , 19 .
VARIOUS INSURANCE AND/OR
REINSURANCE COMPANIES
/s/
-----------------
