EXHIBIT 10(e)
Xx. 0000-0000-X000
XXXXXXXXXXX
Xxxxxxxx to and forming part of the CASUALTY EXCESS OF LOSS REINSURANCE
AGREEMENT No. 2521-0027 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. Exclusion B., 22., is added to ARTICLE III, EXCLUSIONS, and the
exclusion reads as follows:
22. All loss, cost or expense directly or indirectly arising out
of, resulting as a consequence of, or related to the
manufacture, testing, remediation, removal, disposal, use of
or exposure to the following, whether or not there is another
cause of loss which may have contributed concurrently or in
any sequence to a loss.
a. Asbestos or materials or products containing
asbestos, except for the Company's Personal Lines
policies;
b. 2.4,5 Trichloroacetic acid ("2,4,5-1") or 2.3,7,8 -
TCDD;
c. Diethylstilbestrol ("DES") in any dosage or form;
d. Any intrauterine device ("IUD");
e. Any product containing silicone, which is in any form
injected or implanted into the body;
f. Phen-fen;
g. Dioxin;
h. Polychlorinated biphenyls;
i. Lead Paint;
j. Manufacture of Latex gloves;
k. Manufacture of Polybutylene piping
(acrylonitrile-butadiene-styrene); or
l. Bio-engineered products, including any food products
or therapeutic or diagnostic pharmaceutical products
which are developed using some form of
bioengineering.
Revised: September 29, 2003
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No. 2521-0027-E001
II. Contractor's Protective Liability (OCP) policy limits are added to
ARTICLE IV, COMPANY POLICY LIMITS, and the Article reads as follows:
ARTICLE IV
COMPANY POLICY LIMITS
For the purpose of determining the Company Retention and the
Reinsurer's limit of liability with respect to each Exhibit of this
Agreement, the limits of liability of the Company with respect to any
one Policy shall be deemed not to exceed:
Automobile Bodily Injury Liability $1,000,000 each person $1,000,000
each occurrence
Automobile Property Damage Liability $1,000,000 each occurrence
Automobile Liability Combined Single Limit $1,000,000 each occurrence
Uninsured/Underinsured Motorists Coverage $1,000,000 each person
$1,000,000 each occurrence
Personal Injury Protection Coverage $1,000,000 each occurrence
Other Bodily Injury Liability $2,000,000 each occurrence
Other Property Damage Liability $2,000,000 each occurrence
Other Liability Combined Single Limit $2,000,000 each occurrence
Section II Liability under Commercial Multiple Peril $2,000,000 each occurrence
Section II Liability under Businessowners $1,000,000 each occurrence
Section II Liability under Homeowners Multiple Peril $1,000,000 each occurrence
Section II Liability under Farmowners Multiple Peril $1,000,000 each occurrence
Employers' Liability
(1) In all states with Statutory Limits Statutory Limits
(2) In All Other States
(i) Bodily Injury by Accident $1,000,000 each accident
(ii) Bodily Injury by Disease $1,000,000 policy limit
(iii) Bodily Injury by Disease $1,000,000 each employee
Owners and Contractors Protective Liability (OCP) $5,000,000 each occurrence*
*The Company warrants that it
shall purchase facultative
reinsurance for policies greater
than $2,000,000 with policy limits
not to exceed $5,000,000.
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No. 2521-0027-E001
III. Paragraph H., Terrorist Activity, of ARTICLE V, 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.
IV. Paragraph B. of Section 3, RETENTION AND LIMIT, of EXHIBIT A, FIRST
CASUALTY EXCESS OF LOSS REINSURANCE COVER, 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:
$1,250,000 Ultimate Net Loss each Occurrence and
$2,500,000 Ultimate Net Loss in the aggregate as
respects all such Occurrences for each Agreement
Year. However, the Reinsurer's liability shall be
limited to $1,250,000 in the aggregate as respects
all such Occurrences arising from loss as defined in
Paragraph H.,3.,c, of the DEFINITIONS Article for
each Agreement Year.
V. Section 4, REINSURANCE PREMIUM, of EXHIBIT A, FIRST CASUALTY EXCESS OF
LOSS REINSURANCE COVER, is amended to reflect the change in rate for
Commercial Automobile Liability (including PIP) to x.xx%, the change in
rate for Workers' Compensation and Employers' Liability to x.xx% and
the change in rate for Commercial Multiple Peril (Section II), Business
Owners (Section II), General Liability and the Liability Section of
Contractors Coverall to x.xx%, and the Section reads in its entirety as
follows:
Section 4
REINSURANCE PREMIUM
A. With respect to business in force at the effective time and
date of this Exhibit, the Company shall pay to the Reinsurer a
reinsurance premium equal to the product of the applicable
gross rate set forth in the Schedule of Rates below times the
Company's unearned premium for each class of Casualty business
reinsured hereunder, calculated on the monthly pro rata basis
as of the effective time and date of this Exhibit.
B. With respect to business becoming effective at and after the
effective time and date of this Agreement, the Company shall
pay to the Reinsurer a
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No. 2521-0027-E001
reinsurance premium equal to the product of the applicable
gross rate set forth in the Schedule of Rates below times the
Company's Gross Net Written Premium for each class of Casualty
business covered under this Exhibit.
SCHEDULE OF RATES
Class of Business Gross Rate
----------
Private Passenger Automobile Liability (including PIP) x.xx%
Commercial Automobile Liability (including PIP) x.xx%
Workers' Compensation and Employers' Liability x.xx%
Commercial Multiple Peril (Section II), Business Owners (Section II), x.xx%
General Liability and the Liability Section of Contractors Coverall
Homeowners Multiple Peril (Section II) and Farmowners Multiple Peril No Charge
(Section II)
VI. Paragraph B. of Section 3, RETENTION AND LIMIT, of EXHIBIT B, SECOND
CASUALTY EXCESS OF LOSS REINSURANCE COVER, 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 Occurrence and $6,000,000
Ultimate Net Loss in the aggregate as respects all such
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 H.,3.,c, of the DEFINITIONS Article, for each
Agreement Year.
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No. 2521-0027-E001
VII. Section 4, REINSURANCE PREMIUM, of EXHIBIT B, SECOND CASUALTY EXCESS OF
LOSS REINSURANCE COVER, is amended to reflect the change in rate to
x.xx%, the change in the minimum premium amount to $xxx,000, the change
in the deposit premium amount to $xxx,000, and the Section reads in its
entirety as follows:
Section 4
REINSURANCE PREMIUM
A. With respect to business in force and business becoming
effective at and after at the effective time and date of this
Exhibit, the Company shall pay to the Reinsurer a reinsurance
premium equal to x.xx% times the Company's unearned premium
for the Casualty business reinsured hereunder, calculated on
the monthly pro rata basis as of the effective time and date
of this Exhibit.
B. The annual minimum premium for the reinsurance provided for
each Agreement Year hereunder is $xxx,000.
C. The annual deposit premium for the reinsurance provided for
each Agreement Year hereunder is $xxx,000.
VIII. Section 4, REINSURANCE PREMIUM, of EXHIBIT C, THIRD CASUALTY EXCESS OF
LOSS REINSURANCE COVER, is amended to reflect the change in rate to
x.xx%, the change in the minimum premium amount to $xxx,000, the change
in the deposit premium amount to $xxx,000, and the Section reads in its
entirety as follows:
Section 4
REINSURANCE PREMIUM
A. With respect to business in force and business becoming
effective at and after at the effective time and date of this
Exhibit, the Company shall pay to the Reinsurer a reinsurance
premium equal to x.xx% times the Company's unearned premium
for the Casualty business reinsured hereunder, calculated on
the monthly pro rata basis as of the effective time and date
of this Exhibit.
B. The annual minimum premium for the reinsurance provided for
each Agreement Year hereunder is $xxx,000.
C. The annual deposit premium for the reinsurance provided for
each Agreement Year hereunder is $xxx,000.
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No. 2521-0027-E001
IX. Section 5, REINSURANCE PREMIUM, of EXHIBIT D, WORKERS' COMPENSATION
EXCESS OF LOSS REINSURANCE COVER, is amended to reflect the change in
the minimum premium amount to $xx,000, the change in the deposit
premium amount to $xx,000, and the Section reads in its entirety as
follows:
Section 5
REINSURANCE PREMIUM
A. With respect to business in force and business becoming
effective at and after at the effective time and date of this
Exhibit, the Company shall pay to the Reinsurer a reinsurance
premium equal to x.xx% times the Company's unearned premium
for the Casualty business reinsured hereunder, calculated on
the monthly pro rata basis as of the effective time and date
of this Exhibit.
B. The annual minimum premium for the reinsurance provided for
each Agreement Year hereunder is $xx,000.
C. The annual deposit premium for the reinsurance provided for
each Agreement Year hereunder is $xx,000.
IN WITNESS WHEREOF the parties hereto have caused this Endorsement to be
executed in this day of , 2003;
ACCEPTED:
MERCHANTS MUTUAL INSURANCE COMPANY
MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
---------------------------------
and in Princeton, New Jersey this day of , 2003.
AMERICAN RE-INSURANCE COMPANY
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Vice President
DATED: July 31, 2003
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