EXHIBIT 10.2
Amendment No.2
To
Amended and Restated
Brokerage Business Quota Share Reinsurance Agreement Effective April 1, 2006
(Hereinafter referred to as the "Original Agreement")
Between
TOWER INSURANCE COMPANY OF NEW YORK
(Hereinafter referred to as the "Company")
And
CASTLEPOINT REINSURANCE COMPANY LTD.
(Hereinafter referred to as the "Reinsurer")
WHEREAS, the Reinsurer and the Company are parties to the Original Agreement
NOW THEREFORE, the parties hereby agree to amend the Original Agreement as
amended by Amendment No. 1 as follows:
1. Effective July 1, 2006, Article VI, Reinsurance Coverage, paragraph A (1.
Amendment - A. of Amendment No. 1) will be revised to read as follows:
The Company shall automatically and obligatorily cede to the
Reinsurer, and the Reinsurer shall be obligated to accept as
assumed reinsurance, a 40% quota share portion of the Net
Liabilities with respect to new and renewal business, subject to
adjustment as set forth below. The Company may, in its sole
discretion, change the quota share participation of the Reinsurer,
from time to time, as of any six month anniversary date of the
effective date of this Agreement upon not less than thirty (30)
days prior written notice to the Reinsurer, unless such notice is
waived by the Reinsurer, and provided, however, that the Company
and the Reinsurer may agree to change the Reinsurer's quota share
participation as of any calendar quarter, with all such changes
being affixed to the Agreement; provided further, however, that
the quota share participation of the Reinsurer shall at all times
during the term of this Agreement be a minimum of 25% and a
maximum of 50%,. Notwithstanding the foregoing, if the Company
writes business of the type that it has historically not written
or writes more than 25% of its gross written premiums outside the
state of New York in any 12 month period ending on the anniversary
date of this Agreement, then the Reinsurer has the right to refuse
to reinsure such business that the Company has not historically
written and such excess business written outside the State of New
York.
Furthermore, for the period beginning April 1, 2007, the amount of
property catastrophe premiums ceded that will be paid by the
Reinsurer shall be 30% of property catastrophe premiums, and, for
the period beginning April 1, 2007, the amount of property
catastrophe losses incurred that will be paid by the Reinsurer
shall be 30% of the Company's property catastrophe net retained
losses .
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2. Effective January 1, 2007, the quota share cession referenced to under
Article IV, Reinsurance Coverage, paragraph A, is 49% with respect to new and
renewal business.
3 Effective January 1, 2007, paragraph 1.C of Addendum No. 1 is deleted.
4. Effective April 1, 2007, Company is defined as follows:
TOWER INSURANCE COMPANY OF NEW YORK (on behalf of itself and its pooling
partner TOWER NATIONAL INSURANCE COMPANY)
All other terms and conditions will remain unchanged.
IN WITNESS WHEREOF, the Company and the Reinsurer have caused this Agreement to
be executed.
TOWER INSURANCE COMPANY OF NEW YORK (on behalf of itself
and its pooling partner TOWER NATIONAL INSURANCE COMPANY)
By: /s/ Xxxxxxx X Xxxxxxxxx
------------------------
Name: Xxxxxxx X Xxxxxxxxx
Title: SR VP & CFO
Date: 5/16/07
CASTLEPOINT REINSURANCE COMPANY, LTD.
By: /s/ Xxxxxx X. Xxxxx
------------------------
Name: Xxxxxx X. Xxxxx
Title: President
Date: 5/16/07
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