AGREEMENT OF REINSURANCE
NO. 7448
GENERAL REINSURANCE CORPORATION
a Delaware corporation
having its principal offices at
Financial Centre
000 Xxxx Xxxx Xxxxxx P.O. Box 10350
Stamford, Connecticut 06904-2350
(herein referred to as the "Reinsurer")
and
XXXXX INSURANCE COMPANY
Gateway Plaza
000 Xxxxx Xxxx Xxxxxx, Xxxxx 000
Xxxxxxxx, Xxxxxxxxxx 00000
(herein referred to as the "Company")
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In consideration of the mutual covenants of this Agreement the parties
agree as follows:
The Company shall reinsure with the Reinsurer and the Reinsurer shall
accept as reinsurance from the Company the business described in the Exhibit
listed below which is attached to and made a part of this Agreement and in
each Exhibit which hereafter may be attached to and made a part of this
Agreement. The terms, conditions and limitations of this Agreement and of the
Exhibits shall determine the rights and obligations of the parties.
EXHIBIT A - EXCESS OF LOSS REINSURANCE
of
Workers' Compensation and
Employers' Liability Business
ARTICLE I - SCOPE OF AGREEMENT
This Agreement is solely between the Company and the Reinsurer.
Performance of the respective obligations of each party under this Agreement
shall be rendered
GENERAL REINSURANCE CORPORATION
solely to the other party; however, in the instance of the insolvency of the
Company, the liability of the Reinsurer shall be modified to the extent set
forth in the article entitled INSOLVENCY OF THE COMPANY. In no instance shall
any insured of the Company or any claimant against an insured of the Company
have any rights under this Agreement.
ARTICLE II - GENERAL CONDITIONS, DEFINITIONS AND INTERPRETATIONS
(a) BUSINESS
The term business shall have the meaning set forth in the
appropriate Exhibit. The term policy(ies) shall mean the contracts
of the Company affording insurance with respect to such business.
(b) COMPANY
When more than one company is named as a party to this Agreement,
the first such company named shall be the agent of the other
companies with respect to all matters pertaining to this Agreement.
(c) COMPANY RETENTION
The Company shall retain for its own account the entire amount set
forth as the Company Retention; however, this requirement shall be
satisfied if such amount is retained by the Company or its
affiliated companies under common management or common ownership or
both.
(d) ERRORS AND OMISSIONS
The Reinsurer shall not be relieved of liability by reason of an
error or accidental omission by the Company in reporting any claim
or loss or any business reinsured under this Agreement, provided
such error or omission is rectified promptly after discovery.
The Reinsurer shall be obligated only for the return of the premium
paid to the Reinsurer with respect to business reported but not
reinsured under this Agreement.
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GENERAL REINSURANCE CORPORATION
(e) SPECIAL ACCEPTANCES
Business which is beyond the terms, conditions or limitations of
this Agreement may be submitted to the Reinsurer for special
acceptance hereunder and such business, if accepted by the
Reinsurer, shall be subject to all of the terms, conditions and
limitations of this Agreement except as modified by the special
acceptance. Business which was specially accepted under prior
Agreement No. 6374 shall be accepted under this Agreement without a
new submission.
ARTICLE III - CLAIMS AND LOSSES, ADJUSTMENT EXPENSE AND SALVAGE
(a) CLAIMS AND LOSSES
All payments of claims or losses by the Company within the limits
of liability or amounts of insurance of the policy(ies) of the
Company and within the limits of liability or amounts of
reinsurance set forth in the applicable Exhibit shall be binding on
the Reinsurer, subject to all the terms, conditions and limitations
of this Agreement. The Reinsurer shall reimburse the Company for
the Reinsurer's portion of each payment in settlement of claims or
losses made by the Company and the Reinsurer's portion of the
Company's adjustment expense payments, if any, apportioned between
the parties as set forth in the Exhibits, in connection with such
claim or loss payments; however, in the instance of the insolvency
of the Company, the liability of the Reinsurer shall be modified to
the extent set forth in the article entitled INSOLVENCY OF THE
COMPANY.
The Company shall investigate and settle or defend all claims and
losses. When requested by the Reinsurer, the Company shall permit
the Reinsurer, at the expense of the Reinsurer, to be associated
with the Company in the defense or control of any claim, loss or
legal proceeding which involves or is likely to involve the
Reinsurer.
(b) ADJUSTMENT EXPENSE
Adjustment expense shall mean all expenditures made by the Company
and allocated to an individual claim or loss, other than payments
to any salaried employee of the Company, in connection with the
disposition of claims, losses or legal proceedings including
investigation, negotiation and legal expenses, court costs,
statutory penalties and accrued interest, other than accrued
interest which is a part of a judgment.
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GENERAL REINSURANCE CORPORATION
(c) SALVAGE
The Company shall pay to or credit the Reinsurer with the
Reinsurer's portion of any salvage recovered.
With respect to reinsurance under this Agreement on a share basis,
salvage shall be apportioned between the parties in the same ratio
as the amounts of their respective liabilities for the claim or
loss. With respect to reinsurance under this Agreement on an excess
basis, salvage shall be applied between the parties in the order
inverse to that in which their respective liabilities attached.
Salvage shall mean any recovery made by the Company in connection
with a claim or loss, less all expenses paid by the Company, other
than payments to any salaried employee of the Company, in making
such recovery.
ARTICLE IV - REPORTS AND REMITTANCES
In addition to the reports and remittances required by the applicable
Exhibit, the Company shall furnish such other information as may be required
by the Reinsurer for the completion of the Reinsurer's quarterly and annual
statements and internal records.
All reports shall be rendered on forms mutually acceptable to the
Company and the Reinsurer.
ARTICLE V - RESERVES AND TAXES
The Reinsurer shall maintain such reserves as may be required with
respect to the Reinsurer's portion of unearned premium, claims, losses and
adjustment expense.
The Company shall be liable for all taxes on premiums ceded to the
Reinsurer under this Agreement. If the Reinsurer is obligated to pay any
taxes on such premiums, the Company shall reimburse the Reinsurer; however,
the Company shall not be required to pay taxes twice on the same premiums.
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GENERAL REINSURANCE CORPORATION
ARTICLE VI - OFFSET
The Company or the Reinsurer may offset any balance(s), whether on
account of premiums, commission, claims or losses, adjustment expense,
salvage, or any other amount(s) due from one party to the other under this
Agreement or under any other agreement heretofore or hereafter entered into
between the Company and the Reinsurer, whether acting as assuming reinsurer
or as ceding company.
ARTICLE VII - INSPECTION OF RECORDS
The Company shall allow the Reinsurer to inspect, at all reasonable
times, all records of the Company with respect to the business reinsured
under this Agreement, or with respect to claims, losses or legal proceedings
which involve or are likely to involve the Reinsurer.
ARTICLE VIII - ARBITRATION
Should any difference of opinion arise between the Reinsurer and the
Company which cannot be resolved in the normal course of business with
respect to the interpretation of this Agreement or the performance of the
respective obligations of the parties under this Agreement, the difference
shall be submitted to arbitration.
One arbitrator shall be chosen by the Reinsurer, one by the Company and
an umpire by the two arbitrators before they enter upon arbitration. If the
arbitrators have not chosen an umpire at the end of 10 days following the
last date of the selection of the two arbitrators, each of the arbitrators
shall name three of whom the other declines two and the decision shall be
made of the remaining two by drawing lots.
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GENERAL REINSURANCE CORPORATION
The arbitrators and umpire shall be officials of insurance or reinsurance
companies authorized to transact business in one or more states of the United
States of America and writing the kind of business about which the difference
has arisen. The arbitrators and umpire are relieved from all judicial
formalities and may abstain from following the strict rules of law and they
shall make their award with a view to effecting the general purpose of this
Agreement rather than in accordance with the literal interpretation of the
language, and the decision of the majority shall be final and binding upon the
parties under this Agreement.
If either party fails to choose an arbitrator within one month after
receiving the written request of the other party to do so, the latter shall
choose both arbitrators, who shall choose the umpire as provided.
Each party shall submit its case to the arbitrators and umpire within
one month after receipt of advises of the selection of the umpire unless the
period is extended by the arbitrators.
The costs of arbitration, including the fees of the arbitrators and
umpire, shall be borne equally unless the arbitrators and umpire shall decide
otherwise. The arbitration shall be held at the times and place agreed upon
by the arbitrators and umpire. The laws of the State of California shall
govern the arbitration.
ARTICLE IX - INSOLVENCY OF THE COMPANY
In the event of the insolvency of the Company, the reinsurance proceeds
will be paid to the Company or the liquidator on the basis of the amount of
the claim allowed in the insolvency proceeding without diminution by reason
of the inability of the Company to pay all or part of the claim.
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GENERAL REINSURANCE CORPORATION
The Reinsurer shall be given written notice of the pendency of each
claim against the Company on the policy(ies) reinsured hereunder within a
reasonable time after such claim is filed in the insolvency proceedings. The
Reinsurer shall have the right to investigate each such claim and to
interpose, at its own expense, in the proceeding where such claim is to be
adjudicated, any defenses which it may deem available to the Company or its
liquidator. The expense thus incurred by the Reinsurer shall be chargeable,
subject to court approval, against the insolvent Company as part of the
expense of liquidation to the extent of a proportionate share of the benefit
which may accrue to the Company solely as a result of the defense undertaken
by the Reinsurer.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in duplicate this 16th day of February, 1990.
GENERAL REINSURANCE CORPORATION
/s/ Xxxxxxx X. Xxxxxxxxx
Vice President
Attest: /s/ C. Xxxx Xxxxxx
XXXXX INSURANCE COMPANY
/s/ Xxxxxx X. Xxxxxxxxx
President
Attest: /s/ Xxxxxxxx X. Xxxxx
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Agreement No. 7448
GENERAL REINSURANCE CORPORATION
EXHIBIT A
Attached to and made a part of
AGREEMENT OF REINSURANCE NO. 7448
EXCESS OF LOSS REINSURANCE
of
Workers' Compensation and Employers' Liability Business
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SECTION 1 - LIABILITY OF THE REINSURER
The Reinsurer shall pay to the Company with respect to each accident
under Workers' Compensation and Employers' Liability business of the Company
the amount of net loss sustained by the Company in excess of the Company
Retention but not exceeding the Limits of Liability of the Reinsurer as set
forth in the Schedule of Reinsurance, plus a proportionate share of
adjustment expense.
SCHEDULE OF REINSURANCE
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Company Retention Limits of Liability of the Reinsurer
-------------------------------------------------------------------------------
First Second
Excess Cover Excess Cover
------------ ------------
Each Accident Each Accident Each Accident
------------- ------------- -------------
California and $150,000 $150,000 $4,850,000
Arizona Business
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SECTION 2 - DEFINITIONS AND INTERPRETATIONS
(a) WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY BUSINESS
This term shall mean the insurance for California and Arizona
employers afforded by Parts One, Two and Three of a standard
provisions Workers' Compensation and Employers' Liability Policy.
GENERAL REINSURANCE CORPORATION
(b) ACCIDENT
This term shall mean each accident or occurrence or series of
accidents or occurrences arising out of one event; provided, with
respect to bodily injury by disease, each such injury to each
employee shall be considered a separate accident, and the date of
accident shall be the date of commencement of compensable
disability.
(c) NET LOSS
This term shall mean all payments by the Company, adjusted in
accordance with the section entitled ADJUSTED DOLLAR COVERAGE, in
settlement of claims or losses, payment of compensation or other
benefits, or satisfaction of judgments or awards, after deduction
of salvage, and shall exclude adjustment expense and payments or
liability in excess of the Company's policy limit(s); however in
the instance of the insolvency of the Company, this definition
shall be modified to the extent set forth in the article entitled
INSOLVENCY OF THE COMPANY.
SECTION 3 - EXCLUSIONS
This Exhibit shall not apply to:
(a) Business accepted by the Company as reinsurance from other insurers;
(b) Insurance written by the aviation underwriting unit, howsoever styled,
of the Company or written by the Company as a member of an aviation
insurance group or pool or association;
(c) Insurance with respect to operations involving:
(1) Aircraft flight and ground operations;
(2) Amusement parks or devices, exhibitions (including fireworks),
carnivals, circuses;
(3) Caisson or xxxxxx dam work, dam, dike, lock or revetment
construction;
(4) Chemical manufacturing;
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GENERAL REINSURANCE CORPORATION
(5) Manufacturing, packing, handling or shipping of explosives,
explosive substances intended for use as an explosive,
ammunitions, fuses, arms or fireworks;
(6) Gas (including liquefied petroleum gas) companies, dealers,
distributors or construction;
(7) Maritime or federal employments, or steamship lines or agencies
or stevedoring;
(8) Mining or quarries;
(9) Oil or gas lease operators or contractors; oil or gas xxxxx work;
oil or gas pipeline construction or operations; oil rig xxxxxxx
work;
(10) Railroad operation or construction;
(11) Sewer, subway or water main construction, or shaft sinking or
tunnelling;
(12) Wrecking;
(13) Asbestos manufacturing.
If the Company provides insurance for an insured with respect to any
operations listed in one or more of the exclusions under (c), except
exclusion (5), and such operations constitute only a minor and incidental
part of the total operations of the insured, such exclusion(s) shall not
apply.
If the Company is bound, without the knowledge of and contrary to the
instructions of the Company's supervisory underwriting personnel, on any
insurance of the Company falling within the scope of one or more of the
exclusions set forth in this section, these exclusions, except exclusion (a)
shall be suspended with respect to such business until 30 days after an
underwriting supervisor of the Company acquires knowledge of such business.
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GENERAL REINSURANCE CORPORATION
SECTION 4 - REINSURANCE PREMIUM
The Company shall pay to the Reinsurer:
(a) For the First Excess Cover:
(1) A net rate of 1.460% of the Company's earned premium for
California Workers' Compensation and Employers' Liability
Business; and
(2) A net rate of 2.540% of the Company's earned premium for Arizona
Workers' Compensation and Employers' Liability Business.
(b) For the Second Excess Cover:
(1) A net rate of 1.185% of the Company's earned premium for
California Workers' Compensation and Employers' Liability
Business; and
(2) A net rate of 1.395% of the Company's earned premium for Arizona
Workers' Compensation and Employers' Liability Business.
SECTION 5 - CONTINGENT COMMISSION
On the First Excess Cover only, the Reinsurer shall pay to the Company a
contingent commission of 66 2/3% of the amount by which the Reinsurer's
Income exceeds the Reinsurers' Outgo for each rating period.
With respect to the contingent commission and the calculation thereof,
the following interpretations and reporting provisions shall apply:
(a) RATING PERIOD
The initial rating period shall be from July 1, 1985, to June 30,
1990, (the period from July 1, 1985, to June 30, 1989 under
Agreement No. 6374 between the Reinsurer and the Company and the
period from July 1, 1989, to June 30, 1990 under this Agreement),
and thereafter each rating period shall consist of 60 months to
begin concurrently with the expiration of the previous rating
period; however, in the event of termination of
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GENERAL REINSURANCE CORPORATION
this Exhibit, the following rating periods shall be combined and
shall constitute a single rating period:
(1) The period from the last completed rating period until the date
of termination, and
(2) The period from the date of termination until expiration or
termination of the reinsurance, if any, then in effect.
(b) REINSURER'S INCOME
This term shall mean the reinsurance premium earned during the rating
period.
(c) REINSURER'S OUTGO
This term shall mean:
(1) The Reinsurer's portion of claims, losses and adjustment expense
paid, less the Reinsurer's portion of salvage recovered,
resulting from accidents taking place during the rating period;
(2) Plus the Reinsurer's portion of reserves for claims, losses, and
adjustment expense, including reserves for claims and losses
incurred but not reported developed by application of the
following table, resulting from accidents taking place during the
rating period;
Percentage of Reinsurer's Income Cumulatively
From Inception of Rating Period to the
Following Anniversaries:
--------------------------------------------------------
First 61%
Second 44%
Third 32%
Fourth 24%
Fifth 12%
Sixth and subsequent 6% unless otherwise agreed
(3) Plus 15% of the Reinsurer's Income as an allowance for the
Reinsurer's management expenses.
(d) INTERIM STATEMENTS OF CONTINGENT COMMISSION
Six months after each anniversary of the commencement of a rating
period, the Reinsurer shall render to the Company an
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GENERAL REINSURANCE CORPORATION
interim statement of contingent commission for the time from the
commencement of the rating period until such anniversary. The
amount thereof, payable subject to the following schedule, shall be
balanced against the amount previously paid the Company, and the
difference due either party shall be remitted promptly.
The Contingent Commission
At the completion of payable shall be
----------------------------------------- --------------------------
1) the first year of the rating period 20% of the amount due
2) the second year of the rating period 40% of the amount due
3) the third year of the rating period 60% of the amount due
4) the fourth year of the rating period 80% of the amount due
5) the fifth year of the rating period 100% of the amount due.
(e) FINAL STATEMENT OF CONTINGENT COMMISSION
Six months after the end of a rating period, the Reinsurer
shall render to the Company a statement of contingent
commission for the entire rating period. The amount thereof
shall be balanced against the amount previously paid the
Company, and the difference due either party shall be remitted
promptly.
Annually thereafter, revised statements shall be rendered to
the Company reflecting changes in the original statement until
all losses which occurred during the rating period are fully
discharged, and the amount due either party because of such
changes shall be remitted promptly.
(f) TERMINATION
If this Exhibit is terminated by The Contingent Commission
the Company at any time during percentage shall be
---------------------------------------- --------------------------
1) the first year of any rating period Nil
2) the second year of any rating period 20% of 66 2/3%
3) the third year of any rating period 40% of 66 2/3%
4) the fourth year of any rating period 60% of 66 2/3%
5) the fifth year of any rating period 80% of 66 2/3%.
If this Exhibit is still in force at the end of a rating
period, the Contingent Commission percentage for the entire
rating period shall be 100% of 66 2/3%.
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GENERAL REINSURANCE CORPORATION
If this Exhibit is terminated by the Reinsurer, the Contingent
Commission percentage for each rating period, or fractional
part thereof, shall be 100% of 66 2/3%.
SECTION 6 - REPORTS AND REMITTANCES
(a) REINSURANCE PREMIUM
Within 25 days after the close of each month, the Company
shall render to the Reinsurer a report of the reinsurance
premium by state for the month; and the amount due the
Reinsurer shall be remitted within 60 days after the close of
the month.
(b) CLAIMS AND LOSSES
The Company shall report promptly to the Reinsurer each claim
or loss for which the Company's estimated amount of net loss
is $75,000 or more and shall also report all cases of serious
injury which, regardless of considerations of liability or
coverage, might involve this reinsurance, including but not
limited to the following:
(1) Cord injury - paraplegia, quadriplegia;
(2) Amputations - requiring a prosthesis;
(3) Brain damage affecting mentality or central nervous system - such
as permanent disorientation, behavior disorder, personality
change, seizures, motor deficit, inability to speak (aphasia),
hemiplegia or unconsciousness (comatose);
(4) Blindness;
(5) Xxxxx - involving over 10% of body with third degree or 30% of
body with second degree;
(6) Multiple fractures - involving more than one member or non-union;
(7) Fracture of both heel bones (fractured bilateral os calcis);
(8) Nerve damage causing paralysis and loss of sensation in arm and
hand (brachial plexus nerve damage);
(9) Massive internal injuries affecting body organs;
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GENERAL REINSURANCE CORPORATION
(10) Injury to nerves at base of spinal canal (Cauda Equina) or any
other back injury resulting in incontinence of bowel and/or
bladder;
(11) Fatalities;
(12) Any other serious case which, in the Company's judgment, might
involve the Reinsurer.
The Company shall advise the Reinsurer of the estimated amount of
net loss and adjustment expense in connection with each such claim
or loss and of any subsequent changes in such estimates.
Upon receipt of a definitive statement of net loss and adjustment
expense from the Company, the Reinsurer shall pay promptly to the
Company the Reinsurer's portion of net loss and Reinsurer's portion
of adjustment expense, if any. Any subsequent changes shall be
reported by the Company to the Reinsurer and the amount due either
party shall be remitted promptly.
SECTION 7 - ADJUSTED DOLLAR COVERAGE
In determining net loss under this Exhibit, the parties intend to adjust
payments made by the Company which are allocable to the first $2,100,000 of any
claim or loss, to the benefit and price levels in effect at the time of
eligibility for benefits. The Company shall be solely responsible for actual
payments in excess of the net loss as adjusted. Actual payments shall be
adjusted as described below and as illustrated in the examples in the attached
Appendix A.
(a) PERIODIC COMPENSATION AND ECONOMIC LOSS BENEFITS
All worker's compensation payments other than medical and
medical rehabilitation payments shall be included in net loss to
the extent of the amount of any currently effective weekly award
or the amount required by law for the first full benefit week
(or other benefits period if payments are made on other than a
weekly basis) following the date of accident, whichever is less.
Additional benefits greater than the amount awarded for the
first benefit period, whether granted retroactively or
prospectively, are excluded from net loss.
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GENERAL REINSURANCE CORPORATION
(b) MEDICAL AND MEDICAL REHABILITATION BENEFITS
Medical and medical rehabilitation benefits shall be adjusted by
dividing payments made in each calendar year by the quotient of
the medical component of the Consumer's Price Index (CPI) for
that year divided by the medical component of the CPI for the
year of the accident; such quotient, however, not to be less
than one.
(c) EMPLOYERS' LIABILITY PAYMENTS
Employers' Liability payments shall be adjusted by dividing
payments made in each calendar year by the quotient of the
medical component of the Consumer's Price Index (CPI) for that
year divided by the medical component of the CPI for the year of
the accident; such quotient, however, not to be less than one.
If the Bureau of Labor Statistics changes the composition of the CPI so
as to destroy the continuity of the medical component of the CPI, the parties
shall make suitable adjustments in the calculations. A qualified independent
actuary shall be retained to determine the adjustments if the parties are
unable to agree on such adjustments.
SECTION 8 - COMMENCEMENT
This Exhibit applies to new and renewal policies of the Company becoming
effective at and after 12:01 A.M., July 1, 1989, and to policies in force at
12:01 A.M., July 1, 1989, for claims and losses resulting from accidents
occurring at and after the aforesaid time and date.
SECTION 9 - TERMINATION BY THE COMPANY
The Company may terminate this Exhibit at any time by sending to the
Reinsurer, by registered mail to its principal office, notice stating the
time and date when,
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GENERAL REINSURANCE CORPORATION
not less than 90 days after the date of mailing of such notice, termination
shall be effective. In such instance, the liability of the Reinsurer with
respect to policies in effect at the time and date of termination shall
continue until cancellation or expiration or the next anniversary of each
such policy, whichever comes first.
The reinsurance premium for policies in force at the time and date of
termination shall be calculated by applying the provisions of the section
entitled REINSURANCE PREMIUM to the monthly earned premiums that derive from
the unearned premium applicable to policies in force at the time and date of
termination.
SECTION 10 - TERMINATION BY THE REINSURER
The Reinsurer may terminate this Exhibit at any time by sending to the
Company, by registered mail to its principal office, notice stating the time
and date when, not less than 90 days after the date of mailing of such
notice, termination shall be effective. In such instance, the liability of
the Reinsurer with respect to policies in effect at the time and date of
termination shall continue until cancellation or expiration or the next
anniversary of each such policy, whichever comes first.
The reinsurance premium for policies in force at the time and date of
termination shall be calculated by applying the provisions of the section
entitled REINSURANCE PREMIUM to the monthly earned premiums that derive from
the unearned premium applicable to policies in force at the time and date of
termination.
The following conditions for termination shall apply in the
circumstances hereafter set forth:
(a) If any amount payable by the Company to the Reinsurer
becomes more than 30 days overdue, the Reinsurer may terminate
this Exhibit in its entirety by sending to the Company, by regis-
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GENERAL REINSURANCE CORPORATION
tered mail to its principal office, notice stating the time and
date when, not less than 5 days after the date of mailing of such
notice, termination shall be effective.
(b) If the Company is merged with or purchased by another
Company, or if controlling interest is sold or changed so as to
produce a loss in control over conduct of the business by the
current owners, the Company shall immediately notify the
Reinsurer by registered mail to its principal office giving
details (to the extent of its knowledge thereof) of the
particulars of such merger, change, sale or purchase. Within 35
days after the date of mailing of such notice by the Company, the
Reinsurer may terminate this Exhibit in its entirety by sending
to the Company, by registered mail to its principal office,
notice stating the time and date when not less than 5 days after
the date of mailing of such notice, termination shall be effective
If the Company fails to notify the Reinsurer of such merger,
purchase, change or sale, the Reinsurer, within 35 days after the
Reinsurer has acquired knowledge of the merger, purchase, change
or sale, may terminate this Exhibit in its entirety by sending to
the Company, by registered mail to its principal office, notice
stating the time and date when, not less than 5 days after the
mailing of such notice, termination shall be effective.
In any instance that the Reinsurer terminates this Exhibit in accordance
with sub-paragraphs (a) or (b) above, the Reinsurer shall not be liable for
claims or losses resulting from accidents taking place after the effective
time and date of termination.
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Agreement No. 7448
GENERAL REINSURANCE CORPORATION
APPENDIX A
Attached to and made a part of
EXHIBIT A OF AGREEMENT NO. 7448
ADJUSTED DOLLAR COVERAGE EXAMPLE
EXAMPLE A: Periodic Compensation and Economic Loss Benefits Only
Company Retention: $150,000
Accident Date: July 1, 1989
Benefits Stop: December 31, 1994
Loss in Adjusted Dollars
Company Periodic Compensation Company's Reinsurer's
Payments (Current Law Level) Liability Liability
-------- ------------------------ --------- -----------
1989 $ 30,000 $ 30,000 $ 30,000 -0-
1990 $ 31,500 $ 30,000 $ 30,000 -0-
1991 $ 33,075 $ 30,000 $ 30,000 -0-
1992 $ 34,729 $ 30,000 $ 30,000 -0-
1993 $ 36,465 $ 30,000 $ 30,000 -0-
1994 $ 38,288 $ 30,000 -0- $30,000
-------- -------- -------- -------
$204,057 $180,000 $150,000 $30,000
-------- -------- -------- -------
Excess of Company Payments over
Loss in Adjusted Dollars $ 24,057
--------
$174,057
EXAMPLE B: Medical and Rehabilitation Benefits Only
Company Retention: $150,000
Accident Date: July 1, 1989
Benefits Stop: December 31, 1994
CPI CPI Loss in
Company Payment Accident Adjusted Company's Reinsurer's
Payments Year Year Quotient Dollars Liability Liability
-------- ------- -------- -------- -------- --------- -----------
1989 $ 30,000 500 500 1.0000 $ 30,000 $ 30,000 -0-
1990 $ 32,250 537.5 500 1.0750 $ 30,000 $ 30,000 -0-
1991 $ 34,669 575.1 500 1.1502 $ 30,142 $ 30,142 -0-
1992 $ 37,269 616.5 500 1.2330 $ 30,226 $ 30,226 -0-
1993 $ 40,064 661.5 500 1.3230 $ 30,283 $ 29,632 $ 651
1994 $ 43,069 711.1 500 1.4222 $ 30,283 -0- $30,283
-------- -------- -------- --------
$217,321 $180,934 $150,000 $30,934
Excess of Company Payments over
Loss in Adjusted Dollars $ 36,387
--------
$186,387
GENERAL REINSURANCE CORPORATION
EXAMPLE C: Periodic Compensation and Medical Benefits Combined (Details as
above)
Loss in Adjusted Dollars
Total ----------------------------------------
Company Periodic Company's Reinsurer's
Payments Compensation Medical Total Liability Liability
-------- ------------ -------- -------- --------- -----------
1989 $ 60,000 $ 30,000 $ 30,000 $ 60,000 $ 60,000 -0-
1990 $ 63,750 $ 30,000 $ 30,000 $ 60,000 $ 60,000 -0-
1991 $ 67,744 $ 30,000 $ 30,142 $ 60,142 $ 30,000 $ 30,000
1992 $ 71,998 $ 30,000 $ 30,226 $ 60,226 -0- $ 60,226
1993 $ 76,529 $ 30,000 $ 30,283 $ 60,283 -0- $ 60,283
1994 $ 81,357 $ 30,000 $ 30,283 $ 60,283 -0- $ 60,283
-------- ------------ -------- -------- --------- -----------
$421,378 $180,000 $180,934 $360,934 $150,000 $210,934
Excess of Company Payments over
Total Loss in Adjusted Dollars $ 60,444
--------
$210,444
Page 2 of 2
Appendix A to A
Agreement No. 7448
GENERAL REINSURANCE CORPORATION
EXHIBIT B
Attached to and made a part of
AGREEMENT OF REINSURANCE NO. 7448
THIRD EXCESS OF LOSS REINSURANCE
of
Workers' Compensation and Employers' Liability Business
--------------------------------------------------------------------------------
SECTION 1 - LIABILITY OF THE REINSURER
The Reinsurer shall pay to the Company with respect to each accident
under Workers' Compensation and Employers' Liability business of the Company
the amount of net loss sustained by the Company in excess of the sum of the
Company Retention and underlying reinsurance but not exceeding the Limit of
Liability of the Reinsurer as set forth in the Schedule of Reinsurance, plus
a proportionate share of adjustment expense.
SCHEDULE OF REINSURANCE
--------------------------------------------------------------------------------
Company Retention and
Class of Business Underlying Reinsurance Limit of Liability of the Reinsurer
--------------------------------------------------------------------------------
Each Accident Each Accident
------------- -------------
Workers' Compensation
and Employers'
Liability Business $5,250,000 $5,000,000
--------------------------------------------------------------------------------
SECTION 2 - DEFINITIONS AND INTERPRETATIONS
(a) WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY BUSINESS
This term shall mean the insurance for employers afforded by
Parts One, Two and Three of a standard provisions Workers'
Compensation and Employers' Liability Policy.
GENERAL REINSURANCE CORPORATION
(b) ACCIDENT
This term shall mean each accident or occurrence or series of
accidents or occurrences arising out of one event; provided,
with respect to bodily injury by disease, each such injury to
each employee shall be considered a separate accident, and the
date of accident shall be the date of commencement of
compensable disability.
(c) NET LOSS
This term shall mean all payments by the Company, in settlement
of claims or losses, payment of compensation or other benefits,
or satisfaction of judgments or awards, after deduction of
salvage, and shall exclude adjustment expense and payments or
liability in excess of the Company's policy limit(s); however in
the instance of the insolvency of the Company, this definition
shall be modified to the extent set forth in the article
entitled INSOLVENCY OF THE COMPANY.
SECTION 3 - EXCLUSIONS
This Exhibit shall not apply to:
(a) Business accepted by the Company as reinsurance from other insurers;
(b) Insurance written by the aviation underwriting unit, howsoever
styled, of the Company or written by the Company as a member of
an aviation insurance group or pool or association;
(c) Insurance with respect to operations involving:
(1) Aircraft flight and ground operations;
(2) Amusement parks or devices, exhibitions (including fireworks),
carnivals, circuses;
(3) Caisson or xxxxxx dam work, dam, dike, lock or revetment
construction;
(4) Chemical manufacturing;
(5) Manufacturing, packing, handling or shipping of explosives,
explosive substances intended for use as an explosive,
ammunitions, fuses, arms or fireworks;
B-2
GENERAL REINSURANCE CORPORATION
(6) Gas (including liquefied petroleum gas) companies, dealers,
distributors or construction;
(7) Maritime or federal employments, or steamship lines or agencies
or stevedoring;
(8) Mining or quarries;
(9) Oil or gas lease operators or contractors; oil or gas xxxxx
work; oil or gas pipeline construction or operations; oil rig
xxxxxxx work;
(10) Railroad operation or construction;
(11) Sewer, subway or water main construction, or shaft sinking or
tunnelling;
(12) Wrecking;
(13) Asbestos manufacturing.
If the Company provides insurance for an insured with respect to any
operations listed in one or more of the exclusions under (c), except
exclusion (5), and such operations constitute only a minor and incidental
part of the total operations of the insured, such exclusion(s) shall not
apply.
If the Company is bound, without the knowledge of and contrary to the
instructions of the Company's supervisory underwriting personnel, on any
insurance of the Company falling within the scope of one or more of the
exclusions set forth in this section, these exclusions, except exclusion (a)
shall be suspended with respect to such business until 30 days after an
underwriting supervisor of the Company acquires knowledge of such business.
SECTION 4 - REINSURANCE PREMIUM
The Company shall pay to the Reinsurer 0.55% of the Company's earned
premium for Workers' Compensation and Employers' Liability Business.
B-3
GENERAL REINSURANCE CORPORATION
SECTION 5 - REPORTS AND REMITTANCES
(a) REINSURANCE PREMIUM
Within 25 days after the close of each month, the Company shall
render to the Reinsurer a report of the reinsurance premium by
state for the month; and the amount due the Reinsurer shall be
remitted within 60 days after the close of the month.
(b) CLAIMS AND LOSSES
The Company shall report promptly to the Reinsurer each claim or
loss for which the Company's estimated amount of net loss 50% or
more of the amount of the Company Retention and shall also
report all cases of serious injury which, regardless of
considerations of liability or coverage, might involve this
reinsurance, including but not limited to the following:
(1) Cord injury - paraplegia, quadriplegia;
(2) Amputations - requiring a prosthesis;
(3) Brain damage affecting mentality or central nervous
system - such as permanent disorientation, behavior disorder,
personality change, seizures, motor deficit, inability to speak
(aphasia), hemiplegia or unconsciousness (comatose);
(4) Blindness;
(5) Xxxxx - involving over 10% of body with third degree or 30% of
body with second degree;
(6) Multiple fractures - involving more than one member or
non-union;
(7) Fracture of both heel bones (fractured bilateral os calcis);
(8) Nerve damage causing paralysis and loss of sensation in arm and
hand (brachial plexus nerve damage);
(9) Massive internal injuries affecting body organs;
(10) Injury to nerves at base of spinal canal (Cauda Equina) or any
other back injury resulting in incontinence of bowel and/or
bladder;
B-4
GENERAL REINSURANCE CORPORATION
(11) Fatalities;
(12) Any other serious case which, in the Company's judgment, might
involve the Reinsurer.
The Company shall advise the Reinsurer of the estimated amount
of net loss and adjustment expense in connection with each such
claim or loss and of any subsequent changes in such estimates.
Upon receipt of a definitive statement of net loss and
adjustment expense from the Company, the Reinsurer shall pay
promptly to the Company the Reinsurer's portion of net loss and
Reinsurer's portion of adjustment expense, if any. Any
subsequent changes shall be reported by the Company to the
Reinsurer and the amount due either party shall be remitted
promptly.
SECTION 6 - COMMENCEMENT
This Exhibit applies to new and renewal policies of the Company becoming
effective at and after 12:01 A.M., July 1, 1996, and to policies in force at
12:01 A.M., July 1, 1996, for claims and losses resulting from accidents
occurring at and after the aforesaid time and date.
SECTION 7 - TERMINATION BY THE COMPANY
The Company may terminate this Exhibit at any time by sending to the
Reinsurer, by registered mail to its principal office, notice stating the
time and date when, not less than 90 days after the date of mailing of such
notice, termination shall be effective. In such instance, the liability of
the Reinsurer with respect to policies in effect at the time and date of
termination shall continue until cancellation or expiration or the next
anniversary of each such policy, whichever comes first.
The reinsurance premium for policies in force at the time and date of
termination shall be calculated by applying the provisions of the section
entitled REINSURANCE PREMIUM to the monthly earned premiums that derive from
the unearned premium applicable to policies in force at the time and date of
termination.
B-5
GENERAL REINSURANCE CORPORATION
SECTION 8 - TERMINATION BY THE REINSURER
The Reinsurer may terminate this Exhibit at any time by sending to the
Company, by registered mail to its principal office, notice stating the time
and date when, not less than 90 days after the date of mailing of such
notice, termination shall be effective. In such instance, the liability of
the Reinsurer with respect to policies in effect at the time and date of
termination shall continue until cancellation or expiration or the next
anniversary of each such policy, whichever comes first.
The reinsurance premium for policies in force at the time and date of
termination shall be calculated by applying the provisions of the section
entitled REINSURANCE PREMIUM to the monthly earned premiums that derive from
the unearned premium applicable to policies in force at the time and date of
termination.
The following conditions for termination shall apply in the
circumstances hereafter set forth:
(a) If any amount payable by the Company to the Reinsurer becomes more
than 30 days overdue, the Reinsurer may terminate this Exhibit in
its entirety by sending to the Company, by registered mail to its
principal office, notice stating the time and date when, not less
than 5 days after the date of mailing of such notice, termination
shall be effective.
(b) If the Company is merged with or purchased by another Company, or if
controlling interest is sold or changed so as to produce a loss in
control over conduct of the business by the current owners, the
Company shall immediately notify the Reinsurer by registered mail
to its principal office giving details (to the extent of its
knowledge thereof) of the particulars of such merger, change, sale
or purchase. Within 35 days after the date of mailing of such
notice by the Company, the Reinsurer may terminate this Exhibit in
its entirety by sending to the Company, by registered mail to its
principal office, notice stating the time and date when not less
than 5 days after the date of mailing of such notice, termination
shall be effective.
If the Company fails to notify the Reinsurer of such merger,
purchase, change or sale, the Reinsurer, within 35 days after the
Reinsurer has acquired knowledge of the merger, purchase, change or
sale, may terminate this Exhibit in its entirety by sending to the
Company, by registered
B-6
GENERAL REINSURANCE CORPORATION
mail to its principal office, notice stating the time and date when,
not less than 5 days after the mailing of such notice, termination
shall be effective.
In any instance that the Reinsurer terminates this Exhibit in
accordance with subparagraphs (a) or (b) above, the Reinsurer shall
not be liable for claims or losses resulting from accidents taking
place after the effective time and date of termination.
B-7
Agreement No. 7448
GENERAL REINSURANCE CORPORATION
ENDORSEMENT NO. 1
Attached to and made a part of
AGREEMENT OF REINSURANCE
NO. 7448
between
GENERAL REINSURANCE CORPORATION
and
XXXXX INSURANCE COMPANY
IT IS MUTUALLY AGREED that as respects new and renewal policies of the
Company becoming effective at and after 12:01 A.M., July 1, 1991, and
policies of the Company in force at 12:01 A.M., July 1, 1991, Section 4 of
Exhibit A to this Agreement is amended to read:
"SECTION 4 - REINSURANCE PREMIUM
The Company shall pay to the Reinsurer:
(a) For the First Excess Cover:
(1) A net rate of 1.61% of the Company's earned premium for
California Workers' Compensation and Employers' Liability
Business; and
(2) A net rate of 2.79% of the Company's earned premium for Arizona
Workers' Compensation and Employers' Liability Business.
(b) For the Second Excess Cover:
(1) A net rate of 1.30% of the Company's earned premium for
California Workers' Compensation and Employers' Liability
Business; and
(2) A net rate of 1.53% of the Company's earned premium for Arizona
Workers' Compensation and Employers' Liability Business."
IN WITNESS WHEREOF, the parties hereto have caused this Endorsement
GENERAL REINSURANCE CORPORATION
to be executed in duplicate this 5th day of August, 1991.
GENERAL REINSURANCE CORPORATION
/s/ Xxxxxxx X. Xxxxxxxxx
------------------------
Vice President
Attest: /s/ C. Xxxx Xxxxxx
XXXXX INSURANCE COMPANY
/s/ Xxxxxx X. Xxxxxxx
------------------------
President/CEO
Attest: /s/ Xxxxxxxx X. Xxxxx
-2-
Endorsement No. 1
Agreement No. 7448
GENERAL REINSURANCE CORPORATION
ENDORSEMENT NO. 2
Attached to and made a part of
AGREEMENT OF REINSURANCE
NO. 7448
between
GENERAL REINSURANCE CORPORATION
and
XXXXX INSURANCE COMPANY
IT IS MUTUALLY AGREED that, as respects claims and losses resulting from
accidents taking place at and after 12:01 A.M., October 1, 1993, the Schedule
of Reinsurance in Section 1 - LIABILITY OF THE REINSURER of Exhibit A to this
Agreement is amended to read as follows:
"SCHEDULE OF REINSURANCE
------------------------------------------------------------------------------------
Company Retention Limits of Liability of the Reinsurer
------------------------------------------------------------------------------------
First Second
Excess Cover Excess Cover
------------- --------------
Each Accident Each Accident Each Accident
------------- ------------- --------------
California and
Arizona Business $200,000 $100,000 $4,850,000"
IT IS FURTHER AGREED that as respects new and renewal policies of the
Company becoming effective at and after 12:01 A.M., October 1, 1993, and
policies of the Company in force at 12:01 A.M., October 1, 1993, Section 4 of
Exhibit A to this Agreement is amended to read as follows:
"SECTION 4 - REINSURANCE PREMIUM
The Company shall pay to the Reinsurer:
(a) For the First Excess Cover:
GENERAL REINSURANCE CORPORATION
(1) A net rate of 0.67% of the Company's earned premium for
California Workers' Compensation and Employers' Liability
Business; and
(2) A net rate of 1.66% of the Company's earned premium for Arizona
Workers' Compensation and Employers' Liability Business.
(b) For the Second Excess Cover:
(1) A net rate of 1.91% of the Company's earned premium for
California Workers' Compensation and Employers' Liability
Business; and
(2) A net rate of 2.10% of the Company's earned premium for Arizona
Workers' Compensation and Employers' Liability Business."
IT IS FURTHER AGREED that, effective October 1, 1993, Appendix A is
replaced with Appendix A Revised (Effective October 1, 1993) attached hereto.
IN WITNESS WHEREOF, the parties hereto have caused this Endorsement to
be executed in duplicate this 13th day December, 1993.
GENERAL REINSURANCE CORPORATION
/s/ [ILLEGIBLE]
Vice President
ATTEST: /s/ [ILLEGIBLE]
XXXXX INSURANCE COMPANY
ATTEST: /s/ [ILLEGIBLE] /s/ [ILLEGIBLE]
-2-
Endorsement No. 2
Agreement No. 7448
GENERAL REINSURANCE CORPORATION
Effective October 1, 1993
APPENDIX A REVISED
Attached to and made a part of
EXHIBIT A OF AGREEMENT NO. 7448
ADJUSTED DOLLAR COVERAGE EXAMPLE
EXAMPLE A: Periodic Compensation and Economic Loss Benefits Only
Company Retention: $200,000
Accident Date: October 1, 1993
Benefits Stop: December 31, 1998
Loss in Adjusted Dollars
Company Periodic Compensation Company's Reinsurer's
Payments (Current Law Level) Liability Liability
-------- ------------------- --------- ---------
>
1993 $ 40,000 $ 40,000 $ 40,000 -0-
1994 $ 42,000 $ 40,000 $ 40,000 -0-
1995 $ 44,100 $ 40,000 $ 40,000 -0-
1996 $ 46,305 $ 40,000 $ 40,000 -0-
1997 $ 48,620 $ 40,000 $ 40,000 -0-
1998 $ 51,051 $ 40.000 -0- $40,000
-------- -------- -------- -------
$272,076 $240,000 $200,000 $40,000
Excess of Company Payments over
Loss in Adjusted Dollars $ 32,076
--------
$232,076
EXAMPLE B: Medical and Rehabilitation Benefits Only
Company Retention: $200,000
Accident Date: October 1, 1993
Benefits Stop: December 31, 1998
CPI CPI Loss in
Company Payment Accident Adjusted Company's Reinsurer's
Payments Year Year Quotient Dollars Liability Liability
-------- ---- ---- -------- ------- --------- ----------
1993 $ 40,000 661.5 661.5 1.0000 $ 40,000 $ 40,000 -0-
1994 $ 43,000 711.1 661.5 1.0750 $ 40,000 $ 40,000 -0-
1995 $ 46,225 764.4 661.5 1.1556 $ 40,000 $ 40,000 -0-
1996 $ 49,692 821.8 661.5 1.2423 $ 40,010 $ 40,010 -0-
1997 $ 53,419 883.4 661.5 1.3354 $ 40,002 $ 39,990 $ 12
1998 $ 57,425 949.7 661.5 1.4358 $ 39,995 -0- $39,995
-------- -------- -------- -------
$289,761 $240,007 $200,000 $40,007
Excess of Company Payments over
Loss in Adjusted Dollars $ 49,754
--------
$249,754
GENERAL REINSURANCE CORPORATION
EXAMPLE C: Periodic Compensation and Medical Benefits Combined (Details
as above)
Total LOSS IN ADJUSTED DOLLARS
---------------------------------
Company Periodic Company's Reinsurer's
Payments Compensation Medical Total Liability Liability
-------- ------------ ------- ------ --------- ---------
1993 $ 80,000 $ 40,000 $ 40,000 $ 80,000 $ 80,000 -0-
1994 $ 85,000 $ 40,000 $ 40,000 $ 80,000 $ 80,000 -0-
1995 $ 90,325 $ 40,000 $ 40,000 $ 80,000 $ 80,000 -0-
1996 $ 95,997 $ 40,000 $ 40,010 $ 80,010 $ 20,000 $ 60,010
1997 $102,039 $ 40,000 $ 40,002 $ 80,002 -0- $ 80,002
1998 $108,476 $ 40,000 $ 39,995 $ 79,995 -0- $ 79,995
-------- --------- ------- -------- -------- --------
$561,837 $240,000 $240,007 $480,007 $200,000 $220,007
Excess of Company Payments over
Total Loss in Adjusted Dollars $ 81,830
--------
$281,830
Page 2 of 2
Appendix A Revised
Agreement No. 7448
GENERAL REINSURANCE CORPORATION
ENDORSEMENT NO. 3
Attached to and made a part of
AGREEMENT OF REINSURANCE
NO. 7448
between
GENERAL REINSURANCE CORPORATION
and
XXXXX INSURANCE COMPANY
IT IS MUTUALLY AGREED that, effective at 12:01 A.M., January 1, 1994,
the first sentence of Article IX - INSOLVENCY of this Agreement is amended to
read as follows:
"In the event of the insolvency of the Company, the reinsurance proceeds
will be paid to the Company or the liquidator, immediately upon demand, with
reasonable provision for verification, on the basis of the amount of the
claim allowed in the insolvency proceeding without diminution by reason of
the inability of the Company to pay all or part of the claim."
IN WITNESS WHEREOF, the parties hereto have caused this Endorsement to
be executed in duplicate this 9th day of March, 1994
GENERAL REINSURANCE CORPORATION
/s/ [ILLEGIBLE]
Vice President
Attest: /s/ [ILLEGIBLE]
XXXXX INSURANCE COMPANY
Attest: /s/ [ILLEGIBLE] /s/ [ILLEGIBLE]
GENERAL REINSURANCE CORPORATION
ENDORSEMENT NO. 4
Attached to and made a part of
AGREEMENT OF REINSURANCE
NO. 7448
between
GENERAL REINSURANCE CORPORATION
and
XXXXX INSURANCE COMPANY
IT IS MUTUALLY AGREED that, as respects new and renewal policies of the
Company becoming effective at and after 12:01 A.M., December 1, 1994,
Agri-Comp Insurance Company of Salem, Oregon is hereby added as a reinsured
party hereunder.
In consideration of the foregoing, Exhibit A of this Agreement is
amended as follows:
I - The Schedule of Reinsurance in Section 1 - LIABILITY OF THE
REINSURER is amended to read as follows:
"SCHEDULE OF REINSURANCE
-----------------------------------------------------------------------------
Company Retention Limits of Liability of the Reinsurer
-----------------------------------------------------------------------------
First Second
Excess Cover Excess Cover
------------- -------------
Each Accident Each Accident Each Accident
------------- ------------- -------------
California, Arizona
and Oregon Business $200,000 $100,000 $4,850,000"
-----------------------------------------------------------------------------
II - Sub-paragraph (a) of Section 2 - DEFINITIONS AND INTERPRETATIONS is
amended to read as follows:
"(a) WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY BUSINESS
This term shall mean the insurance for California, Arizona and
Oregon employers afforded by Parts One, Two and Three of a
standard provi-
GENERAL REINSURANCE CORPORATION
sions Workers' Compensation and Employers' Liability Policy."
III - Section 4 is amended to read as follows:
"SECTION 4 - REINSURANCE PREMIUM
The Company shall pay to the Reinsurer:
(a) For the First Excess Cover:
(1) A net rate of 0.67% of the Company's earned premium for
California Workers' Compensation and Employers' Liability
Business;
(2) A net rate of 1.66% of the Company's earned premium for Arizona
Workers' Compensation and Employers' Liability Business;
(3) A net rate of 1.66% of the Company's earned premium for Oregon
Workers' Compensation and Employers' Liability Business.
(b) For the Second Excess Cover:
(1) A net rate of 1.91% of the Company's earned premium for
California Workers' Compensation and Employers' Liability
Business;
(2) A net rate of 2.10% of the Company's earned premium for Arizona
Workers' Compensation and Employers' Liability Business;
(3) A net rate of 2.10% of the Company's earned premium for Oregon
Workers' Compensation and Employers' Liability Business."
IN WITNESS WHEREOF, the parties hereto have caused this Endorsement to be
-2-
GENERAL REINSURANCE CORPORATION
executed in duplicate this 22nd day of February, 1995.
GENERAL REINSURANCE CORPORATION
/s/ [ILLEGIBLE]
Vice President
Attest /s/[ILLEGIBLE]
XXXXX INSURANCE COMPANY
AGRI-COMP INSURANCE COMPANY
ATTEST: /s/[ILLEGIBLE] /s/ [ILLEGIBLE]
-3-
Endorsement No. 4
Agreement No. 7448
GENERAL REINSURANCE CORPORATION
ENDORSEMENT NO. 5
Attached to and made a part of
AGREEMENT OF REINSURANCE
NO. 7448
between
GENERAL REINSURANCE CORPORATION
and
XXXXX INSURANCE COMPANY
AGRI-COMP INSURANCE COMPANY
IT IS MUTUALLY AGREED that, as respects claims and losses resulting from
accidents taking place at and after 12:01 A.M., July 1, 1995, the Schedule of
Reinsurance in Section 1 - LIABILITY OF THE REINSURER of Exhibit A is amended
to read as follows:
"SCHEDULE OF REINSURANCE
-----------------------------------------------------------------------------
Company Retention Limits of Liability of the Reinsurer
-----------------------------------------------------------------------------
First Second
Excess Cover Excess Cover
------------- -------------
Each Accident Each Accident Each Accident
------------- ------------- -------------
California, Arizona
and Oregon Business $200,000 $100,000 $4,900,000"
-----------------------------------------------------------------------------
IN WITNESS WHEREOF, the parties hereto have caused this Endorsement to be
executed in duplicate this 10th day of JULY, 1996.
GENERAL REINSURANCE CORPORATION
/s/ illegible
Vice President
Attest /s/ illegible
XXXXX INSURANCE COMPANY
AGRI-COMP INSURANCE COMPANY
Attest /s/ illegible /s/ illegible
GENERAL REINSURANCE CORPORATION
ENDORSEMENT NO. 6
Attached to and made a part of
AGREEMENT OF REINSURANCE
NO. 7448
between
GENERAL REINSURANCE CORPORATION
and
XXXXX INSURANCE COMPANY
AGRI-COMP INSURANCE COMPANY
IT IS MUTUALLY AGREED that, effective 12:01 A.M., July 1, 1996, this
Agreement is amended as follows:
I - As respects claims and losses resulting from accidents taking place
at and after such time and date, the Schedule of Reinsurance in
Section 1 LIABILITY OF THE REINSURER of Exhibit A is amended to read
as follows:
"SCHEDULE OF REINSURANCE
-----------------------------------------------------------------------------
Class of Business Company Retention Limits of Liability of the Reinsurer
-----------------------------------------------------------------------------
First Second
Excess Cover Excess Cover
------------- -------------
Each Accident Each Accident Each Accident
------------- ------------- -------------
Workers' Compensation
and Employers'
Liability Business $250,000 $250,000 $4,750,000"
------------------------------------------------------------------------------
II - As respects new and renewal policies of the Company becoming effective
at and after such time and date and policies of the Company in force
at such time and date sub-paragraph (a) of Section 2 - DEFINITIONS AND
INTERPRETATIONS is amended to read as follows:
"(a) WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY BUSINESS
This term shall mean the insurance for employers afforded by Parts
One, Two and Three of a standard provisions Workers' Compensation and
Employers' Liability Policy."
GENERAL REINSURANCE CORPORATION
III - As respects new and renewal policies of the Company becoming
effective at and after such time and date and policies of the
Company in force at such time and date Section 4 is amended to read
as follows:
"SECTION 4 - REINSURANCE PREMIUM
The Company shall pay to the Reinsurer:
(a) For the First Excess Cover:
(1) A net rate of 1.45% of the Company's earned premium for
California Workers' Compensation and Employers' Liability
Business;
(2) A net rate of 1.79% of the Company's earned premium for all other
states Workers' Compensation and Employers' Liability Business.
(b) For the Second Excess Cover:
(1) A net rate of 1.04% of the Company's earned premium for
California Workers' Compensation and Employers' Liability
Business;
(2) A net rate of 1.03% of the Company's earned premium for all other
states Workers' Compensation and Employers' Liability Business."
IV - As respects claims and losses resulting from accidents taking place
at and after such time and date, the first paragraph of sub-paragraph
(b) of Section 6 - REPORTS AND REMITTANCES is amended to read as
follows:
"The Company shall report promptly to the Reinsurer each claim or
loss for which the Company's estimated amount of net loss is 50% or
more of the amount of the Company Retention and shall also report
all cases of serious injury which, regardless of considerations of
liability or coverage, might involve this reinsurance, including
but not limited to the follow:"
-2-
GENERAL REINSURANCE CORPORATION
V - The following Exhibit attached hereto is hereby made a part of this
Agreement:
EXHIBIT B - THIRD EXCESS OF LOSS REINSURANCE
of
Workers' Compensation and Employers' Liability Business
IN WITNESS WHEREOF, the parties hereto have caused this Endorsement to be
executed in duplicate this 27th day of September, 1996.
GENERAL REINSURANCE CORPORATION
/s/ illegible
Vice President
Attest /s/ illegible
XXXXX INSURANCE COMPANY
AGRI-COMP INSURANCE COMPANY
Attest /s/ illegible /s/ illegible
-3-
Endorsement No. 6
Agreement No. 7448
GENERAL REINSURANCE CORPORATION
