WORKERS COMPENSATION
LIMITED RISK QUOTA SHARE REINSURANCE AGREEMENT
PLACEMENT SLIP
COMPANY: Montlake Casualty Company Ltd.
REINSURER: XXXXX Insurance Company
COVERAGE
PERIODS: July 1, 1999, through December 31, 1999, and each 12
month period thereafter commencing January 1, 2000, until
canceled.
BUSINESS
COVERED: All business written and classified by the Company as
Workers Compensation and Employers Liability.
EXCLUSIONS: A. Nuclear fission/fusion/radioactive material.
B. Second Injury Funds (other than the Federal Second
Injury Fund) or Residual Market Assessments.
C. Loss portfolio transfers.
D. Insolvency Funds.
E. Aggregate Workers Compensation policies.
F. Treaty/facultative reinsurance except policies written
by another carrier at Company's request and reinsured
100% by the Company.
Special acceptances may be requested in writing.
TERRITORY: Worldwide.
LIMIT: 35% of the ultimate net loss, each and every occurrence,
regardless of the number of policies involved, after
losses ceded under the Company's excess of loss treaty
program or facultative coverage, whether collectible or
not, are computed, subject to the Aggregate Cover Limit.
"Occurrence" (except for losses arising from Occupational
Disease or Cumulative Trauma as defined below) will mean
any one accident, disaster, casualty, or loss or series of
accidents, disasters, casualties, or losses arising out of
or caused by one event.
With respect to Occupational Disease or Cumulative Trauma,
all losses arising from each employee will be deemed a
separate "occurrence". The date of loss for each
occurrence will be the date when the compensable
disability of the employee commences, or if there is no
such disability, when the medical treatment commences.
The terms "Occupation Disease" and "Cumulative Trauma" as
used in the Agreement will be defined by applicable state
statues, regulations, or Federal law.
LOSS
EXPENSES: Allocated loss adjustment expenses included within the
ultimate net loss. Unallocated loss adjustment expenses are
not covered under this Agreement.
AGGREGATE
COVER LIMIT: Covered losses and ceding commission for each coverage
period limited to 120% of ceded premium for such period.
PREMIUM: 35% of Gross Net Earned Premium (GNEP), payable monthly as
earned.
GNEP is defined as the Company's Earned Premium for the
Business covered less premiums ceded under the Company's
excess of loss treaty program.
REPORTS: Monthly bordereaux within 15 days of the end of each month
of premiums and losses. Initial report for months of July
through October of 1999 due November 15, 1999. Settlement
with bordereaux if balance is due the Reinsurer; if
balance is due the Company, settlement due from the
Reinsurer within 15 days after receipt of bordereaux.
CEDING
COMMISSION: Company allowed a ceding commission of 15% of GNEP ceded.
ORIGINAL
CONDITIONS: The liability of the Reinsurer will be subject in all
respects to the same interpretations, terms, rates,
conditions, waivers, modifications, and alternations as
the respective policies of the Company to which this
Agreement relates. However, in no event will this be
construed in any way to provide coverage outside the terms
and conditions set forth in this Agreement.
The Company will be the sole judge as to what will
constitute a claim or loss covered under the Company's
policies and as to the Company's liability thereunder. The
Company will, at its sole discretion, adjust, settle, or
compromise all claims and losses. All such adjustments,
settlements, and compromises will be unconditionally binding
on the Reinsurer in proportion to its participation in this
Agreement, provided they are within the terms and conditions
of this Agreement. The Company will, likewise, at its sole
discretion, commence, continue, defend, or withdraw from
actions, suits, or proceedings and generally handle all
matters related to all claims and losses, and all payments
make and costs and expenses incurred in connection
therewith, or in taking legal advice therefor, will be
shared by the Reinsurer.
When so requested, however, the Company will afford the
Reinsurer, at the Reinsurer's own expense, an opportunity to
be associated with the Company in the defense of any claim,
suit, or proceeding involving this Agreement,
and the Company and the Reinsurer will cooperate in every
aspect of such defense.
WARRANTY: Company warrants that it shall maintain inforce an excess of
loss treaty program per the attached except that carriers of
comparable financial condition may be utilized.
OTHER
PROVISIONS: Access to Records Clause
Arbitration Clause
Currency (U.S. Dollars) Clause
Delays, Errors, or Omissions Clause
90% ECO/90% ELL (counsel and concur) - included within
ultimate net loss
Entire Agreement and Amendments Clause
Insolvency Clause
Settlements Clause
Salvage & Subrogation Clause
Net Retained Liability Clause
Offset Clause
Tax Clause
Ultimate Net Loss Clause - UNL to include any
deductible under the insured's policy
AGREED TO:
On behalf of Montlake Casualty On behalf of XXXXX Insurance Company
Company Ltd.
/s/ X.X. Xxxxx /s/ Xxxxxxx X. Xxxxxx
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Signed Signed
President President and CEO
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Title Title
November 12, 1999 November 12, 1999
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Date Date
/s/ Xxxxx Xxxxxxxx /s/ Xxxxx X. Xxxxxxxxx
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Attest Attest
