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EXHIBIT 10.41
SERVICE CONTRACT
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 claims and administrative services provided to Millers
by MICR.
3. Millers shall pay MICR for services provided as a percentage of net
earned premiums as follows:
Commercial Property - 11.2% Agribusiness - 9.5%
Commercial Casualty - 13.2% SunCoast - 7.5%
Specialty Personal Lines - 9.5%
4. This contract is to provide services for the period commencing July 1,
1995 through June 30, 1996. 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 July 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 a part hereof as though fully set out
herein.
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 defend all claims.
Payment of claims and related expenses will be made with Millers'
funds.
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B. To appraise Millers of major developments which arise in the
administration, investigation, adjustment, settlement or defense
of a particular claim and to communicate with Millers' designated
representative regarding all important matters concerning the
proper disposition of claims involving complex or questionable
circumstances. Major developments within the contact 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 of
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.
C. To comply with 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 to MICR within 30 days of the
effective date of cancellation.
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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 include 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.
D. This contract supersedes the previous Service Contract entered
into between the parties dated July 1, 1995. The previous Service
Contract is cancelled as of January 1, 1996.
In witness whereof, this agreement has been executed to be effective the 1st
day of January, 1996.
Millers Mutual Fire Insurance Company Millers Integrated Claims Resources, Inc.
By: /s/ F. XXXXXX XXXXXX, III By: /s/ F. XXXXXX XXXXXX, III
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PRESIDENT & CEO PRESIDENT & CEO
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Millers Casualty Insurance Company
By: /s/ F. XXXXXX XXXXXX, III
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PRESIDENT & CEO
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