EXHIBIT 10(g)
Xx. 0000-0000-X000
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Xxxxxxxx to and forming part of the PROPERTY PER RISK EXCESS OF LOSS REINSURANCE
AGREEMENT No. 2521-0031 between MERCHANTS MUTUAL INSURANCE COMPANY, Buffalo, New
York and MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC., Concord, New
Hampshire (hereinafter collectively referred to as "Company") and AMERICAN
RE-INSURANCE COMPANY, a Delaware Corporation with Administrative Offices in
Princeton, New Jersey (hereinafter referred to as the "Reinsurer").
It is mutually understood and agreed by the parties hereto that effective
January 1, 2003, as respects the Company's in-force, new and renewal policies,
as respects losses occurring on or after said date, this Agreement is amended to
read as follows:
I. Paragraph B. of ARTICLE III, RETENTION AND LIMIT, is amended to reflect
the addition of an annual aggregate limit for "NBCR" Terrorist Activity
and the Paragraph reads as follows:
B. Notwithstanding the aforementioned, the following limits shall
apply as respects all loss, cost or expense arising from or
related to, either directly or indirectly, any Terrorist
Activity, as defined in the DEFINITIONS Article:
$3,000,000 Ultimate Net Loss each Loss Occurrence, and
$6,000,000 Ultimate Net Loss in the aggregate as respects all
such Loss Occurrences for each Agreement Year. However, the
Reinsurer's liability shall be limited to $3,000,000 in the
aggregate as respects all such Occurrences arising from loss
as defined in Paragraph G.,3.,c, of the DEFINITIONS Article
for each Agreement Year.
II. Exclusion B., 22., of ARTICLE V, EXCLUSIONS, is amended to include
Property Target Classes and the Exclusion reads in its entirety as follows:
22. A. Any loss, cost or expense arising out of or related
to, either directly or indirectly, any Terrorist
Activity, as defined in the DEFINITIONS Article, with
respect to Risks with a Total Insured Value at the
time of loss greater than or equal to $50,000,000 and
the following risks, classes of business, or accounts
applicable to Policies reinsured hereunder:
(1) Airports and Aircraft
(2) Apartments/Condos/Co-Ops > 25 stories
(3) Automobile Mfrs.
(4) Bridges
(5) Casinos and Casino Hotels
(6) Chemical Mfg. and Distribution Cos.
(7) Convention/Exhibition Centers
Revised: September 24, 2003
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No. 2521-0031-E001
(8) Cruise Lines
(9) Dams
(10) Defense/Aerospace Industries
(11) Financial Institutions with more than 10
branch locations
(12) Government Buildings (Fed/State) and
National Landmarks
(13) High Tech Mfg. Cos.
(14) Hospitals
(15) Hotels > 25 stories
(16) Internet Cos.
(17) Major Media Cos.
(18) Nuclear Facility exposures
(19) Office Buildings > 25 stories
(20) Petrochemical/Oil and Gas Cos.
(21) Pipelines (oil and gas)
(22) Port/Transit Authorities
(23) Property Management Cos - High Rise exposure
> 25 stories
(24) Railroads
(25) Enclosed Shopping Malls - property owner
only
(26) Stadiums
(27) Tunnels
(28) Universities
(29) Utility Cos. - electric, gas, water and
sewer
B. This exclusion applies regardless of any other cause
or event that in any way contributes concurrently or
in any sequence to loss, cost, or expense.
III. Paragraph G., Terrorist Activity, of ARTICLE VI, DEFINITIONS, is
amended to add the definition of "chemical" and the definition reads as follows:
The term "chemical" as used herein shall mean any substance obtained by
a chemical process or used for producing a chemical effect for the
purposes of Terrorist Activity.
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No. 2521-0031-E001
IV. ARTICLE XIII, REINSURANCE PREMIUM, is amended to reflect the change in
the Commercial Property Rate to xx.xx% and the Article reads in its entirety as
follows:
ARTICLE XIII
REINSURANCE PREMIUM
With respect to business in force and business becoming effective at
and after the effective time and date of this Agreement, the rates for
the reinsurance provided hereunder shall be as follows:
1. x.xx% of the Company's unearned premium on Homeowners Multiple
Peril (Section I) after deducting that portion, if any, paid
for share reinsurance, calculated on the monthly pro rata
basis as of the effective time and date of this Agreement; and
2. xx.xx% of the Company's unearned premium on all other classes
of business reinsured hereunder (except Automobile Physical
Damage), after deducting that portion, if any, paid for share
reinsurance, calculated on the monthly pro rata basis as of
the effective time and date of this Agreement.
Nothing herein contained shall alter, vary or extend any provision or condition
of the Agreement other than as above stated.
IN WITNESS WHEREOF the parties hereto have caused this Endorsement to be
executed in duplicate this day of ,2003;
ACCEPTED:
MERCHANTS MUTUAL INSURANCE COMPANY
MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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and in Princeton, New Jersey this day of , 2003.
AMERICAN RE-INSURANCE COMPANY
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Vice President
DATED: February 27, 2003
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