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EXHIBIT 10.42
Millers Integrated Claims Resources, Inc.
Service Contract (as amended to be effective December 1, 1996)
SPECIFIC CONDITIONS
This agreement is entered into between Millers Mutual Fire Insurance Company,
having its principal office at 000 Xxxxxxx Xxxxxx, Xxxx Xxxxx, Xxxxx, Millers
Casualty Insurance Company, having its principal office at 000 Xxxxxxx Xxxxxx,
Xxxx Xxxxx, Xxxxx (together referred herein as Millers) and Millers Integrated
Claims Resources, Inc. (MICR), having its principal office at 000 Xxxxxxx
Xxxxxx, Xxxx Xxxxx, Xxxxx.
Millers and MICR do hereby agree to the following conditions:
1. This agreement covers operations of Millers in all states.
2. The services to be provided shall be in accordance with Texas laws and
shall apply to all claims and administrative services excluding legal
services provided to Millers by MICR.
3. Millers shall pay MICR for services provided at 8.5 percent of net
earned premiums for AgriBusiness and Commercial lines and 7.5 percent of
net earned premiums for Personal lines. MICR will xxxx for services
monthly and monies are due MICR from Millers within 30 days of billing
date. This fee will be reviewed annually and adjusted accordingly.
4. This contract is to provide services for the period commencing December 1,
1996 through December 31, 1997. Millers and MICR agree that unless one of
them gives notice to the other in writing received at least 60 days in
advance of the contract period, this contract will automatically renew for
a new contract period equal in duration to the contract period described
herein, commencing on December 1 of each year.
5. All services to be performed by MICR will be rendered to Millers in a
professional manner, subject to the supervision, standards and needs of
Millers.
6. The General Conditions are made apart hereof as though fully set out herein.
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Millers Integrated Claims Resources, Inc.
Service Contract
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General Conditions
I. MICR'S OBLIGATION UNDER THE CONTRACT:
A. To maintain a complete and accurate claim file on each reported claim.
To investigate evaluate settle and/or give notice of the necessity to
defend all claims. Payment of claims and related expenses will be
made with Millers' funds.
B. To appraise Millers of major developments which arise in the
administration, investigation, adjustment, settlement of a particular
claim and to communicate with Millers designated representative
regarding all important matters concerning the proper disposition of
claims invoicing complex or questionable circumstances. Major
developments within the context of this section are understood to mean:
1. Controverted claims.
2. Receipt of an adverse medical report, e.g. "injury more serious
than originally reported".
3. Death of claimant.
4. Adverse ruling from the court.
5. The need for attorney representation in a previously unrepresented
case.
C. To refrain from disclosing the contents of Millers files to third
parties except as is reasonably necessary in the carrying out the
responsibilities under this contract or in delegating the
responsibilities to others as legally required.
II. MILLERS OBLIGATION UNDER THE CONTRACT:
A. To pay MICR the service fee in the amount and in the manner
prescribed by the Specific Conditions.
B. To refer to MICR for service all claims which would fall within the
definition of claim, specifically any monetary demand against Millers
alleged to fall within the scope of the insurance contracts which were
issued by Millers.
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Millers Integrated Claims Resources, Inc.
Service Contract
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C. To comply will all other terms and conditions in the General Conditions
of this contract.
III. CANCELLATION OF CONTRACT:
Cancellation of this contract without cause shall constitute a breach. This
contract may be cancelled with cause in the event of default in any material
term of this contract or in the event that there exists other reasons legally
constituting cause by either party giving to other party written notice setting
forth the reason for the cancellation and the date upon which cancellation is
to be effective.
In the event of cancellation by MICR or Millers with or without cause, Millers
must pay MICR the balance of any monies owed MICR within 30 days of the
effective date of cancellation.
IV. GENERAL PROVISIONS
Execution of this contract by signing the Specific Conditions which are part of
this contract shall constitute agreement by both parties to all of the terms
set forth in these General Conditions including the following:
A. The provisions of this contract are for the sole benefit of the parties
named herein.
B. Either party will not be liable to any person not a party to this contract
for loss, liability, damage, or expense. Both parties agree to hold the
other party harmless for extra contractual liabilities or losses in excess
of policy limits arising out of their acts.
C. This contract may not be assigned without prior written consent and the
General Conditions and Specific Conditions contain the entire agreement by
and between the parties with respect to the services described herein.
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Service Contract
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In witness whereof, the parties have caused this contract to be executed in
their behalf by the undersigned duly authorized persons.
Xxxxxx Mutual Fire Insurance Company Xxxxxx Integrated Claims Resources, Inc.
By: By:
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Millers Casualty Insurance Company
By:
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