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, 2004, 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. The policy limits for Section II Liability under Businessowners are
increased to $2,000,000 in 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 $2,000,000 each occurrence
Section II Liability under Homeowners Multiple Peril $1,000,000 each occurrence
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No. 2521-0027-E002
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.
II. 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 4.77% 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 6.40%, 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 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) 0.xx%
Commercial Automobile Liability (including PIP) x.xx%
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No. 2521-0027-E002
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)
III. Section 4, REINSURANCE PREMIUM, of EXHIBIT B, SECOND CASUALTY EXCESS OF
LOSS REINSURANCE COVER, is amended to reflect the change in the minimum
premium amount to $xxx,xxx and the change in the deposit premium amount to
$xxx,xxx, 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,xxx.
C. The annual deposit premium for the reinsurance provided for each
Agreement Year hereunder is $xxx,xxx.
IV. Section 4, REINSURANCE PREMIUM, of EXHIBIT C, THIRD CASUALTY EXCESS OF
LOSS REINSURANCE COVER, is amended to reflect the change in the minimum
premium amount to $xxx,xxx and the change in the deposit premium amount to
$xxx,xxx, 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
0.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.
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No. 2521-0027-E002
B. The annual minimum premium for the reinsurance provided for each
Agreement Year hereunder is $xxx,xxx.
C. The annual deposit premium for the reinsurance provided for each
Agreement Year hereunder is $xxx,xxx.
V. Section 5, REINSURANCE PREMIUM, of EXHIBIT D, WORKERS' COMPENSATION EXCESS
OF LOSS REINSURANCE COVER, is amended to reflect the change in the rate to
x.xx%, the change in the minimum premium amount to $xxx,xxx, and the
change in the deposit premium amount to $xxx,xxx. 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 $xxx,xxx.
C. The annual deposit premium for the reinsurance provided for each
Agreement Year hereunder is $xxx,xxx.
VI. Section 8, EXCLUSIONS, is added to EXHIBIT D, WORKERS' COMPENSATION EXCESS
OF LOSS REINSURANCE COVER, and the Section reads in its entirety as
follows:
Section 8
EXCLUSIONS
In addition to the exclusions in Article III of this Agreement, the
following exclusion shall also apply:
All loss, cost or expense directly or indirectly arising out of,
resulting from or in any manner related to Fungal Pathogens or
Bacteria whether or not there is another cause of loss which may
have contributed concurrently or in any sequence to a loss.
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No. 2521-0027-E002
"Fungal Pathogens" as utilized herein, shall mean any fungus or
Mycota or any byproduct or type of infestation produced by such
fungus or Mycota, including but not limited to, mold, mildew,
mycotoxins, spores or any biogenic aerosols.
IN WITNESS WHEREOF the parties hereto have caused this Endorsement to be
executed in this day of , 2004;
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
_____________________________
Vice President
DATED: February 23, 2004
RG/rg
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