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EXHIBIT 10.19
FINANCIAL PACIFIC INSURANCE COMPANY
SACRAMENTO, CALIFORNIA
SEMI-AUTOMATIC CASUALTY FACULTATIVE
REINSURANCE CONTRACT
Originally Effective: July 1, 1996
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SEMIAUTOMATIC CASUALTY FACULTATIVE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1996
issued to
Financial Pacific Insurance Company
Sacramento, California
X. X. Xxxxxx Co.
Reinsurance Services
0000 Xxxx 00xx Xxxxxx
Xxxxxxxxxxx, Xxxxxxxxx 00000
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SEMIAUTOMATIC CASUALTY FACULTATIVE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1996
issued to
Financial Pacific Insurance Company
Sacramento, California
REINSURERS PARTICIPATIONS
Allstate Insurance Company 5.0%
Constitution Reinsurance Corporation 15.0
Xxxxxxx Global Reinsurance Corporation, U. S. Branch 25.0
The Mercantile and General Reinsurance Company of America 12.5
St. Xxxx Reinsurance Management Corporation
(for St. Xxxx Fire and Marine Insurance Company) 15.0
SOREMA North America Reinsurance Company 7.5
Winterthur Reinsurance Corporation of America 15.0
TOTAL 95.0%
X. X. Xxxxxx Co.
Reinsurance Services
0000 Xxxx 00xx Xxxxxx
Xxxxxxxxxxx, Xxxxxxxxx 00000
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TABLE OF CONTENTS
ARTICLE PAGE
Preamble 1
I Application of Xxxxxxxx 0
XX Xxxxxxxxxxxx xxx Xxxxxxxxxxx 0
XXX Xxxxxxxxx 0
IV Exclusions 2
V Attachment of Reinsurer's Liability 6
VI Right of Rejection 6
VII Retention and Limit 7
VIII Definitions 7
IX Claims and Loss Adjustment Expense 8
X Salvage and Xxxxxxxxxxx 0
XX Xxxxxxx 0
XXX Xxxxxxxxxx (XXXX 00X) 9
XIII Offset (BRMA 36C) 10
XIV Access to Records (BRMA ID) 10
XV Liability of the Reinsurer 10
XVI Net Retained Liability 10
XVII Errors and Omissions (BRMA 14F) 10
XVIII Taxes (BRMA 50B) 11
XIX Unauthorized Reinsurers 11
XX Insolvency 12
XXI Arbitration 13
XXII Service of Suit (BRMA 49C) 14
XXIII Intermediary (BRMA 23A) 14
Schedule A
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SEMIAUTOMATIC CASUALTY FACULTATIVE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1996
issued to
Financial Pacific Insurance Company
Sacramento, California
(hereinafter referred to as the "Company")
by
The Subscribing Reinsurer(s) Executing the
Interests and Liabilities Agreement(s)
Attached Hereto
(hereinafter referred to as the "Reinsurer")
PREAMBLE
A. In consideration of the mutual covenants and agreements expressed herein,
the Reinsurer hereby authorizes the Company to bind facultative reinsurance
under this Contract, subject to all the terms, conditions and limitations
stipulated herein.
B. While the Company is authorized and may bind facultative reinsurance
automatically on any risk subject to this Contract, the Company is not
obligated to do so, nor is the Reinsurer obligated to accept any
reinsurance bound hereunder by the Company, except as provided in Articles
VI and VII.
ARTICLE I - APPLICATION OF CONTRACT
This Contract and the binding authority granted herein, shall apply with respect
to the Company's policies, contracts and binders of insurance (hereinafter
called "policies") issued or renewed thereafter, and classified by the Company
as Excess Liability business, subject to the terms, conditions and limitations
set forth herein and in Schedule A attached to and forming part of this
Contract.
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ARTICLE II - COMMENCEMENT AND TERMINATION
A. This Contract shall become effective on July 1, 1996, with respect to
policies allocated to underwriting years commencing on or after that date,
and shall continue in force thereafter until terminated.
B. Either party may terminate this Contract at any time by giving the other
party not less than 90 days prior notice by certified mail.
C. Unless the Company elects to reassume the ceded unearned premium in force
on the effective date of termination, and so notifies the Reinsurer prior
to or as promptly as possible after the effective date of termination,
reinsurance hereunder on business in force on the effective date of
termination shall remain in full force and effect until expiration,
cancellation or next premium anniversary of such business, whichever first
occurs, but in no event beyond 12 months, plus odd time, following the
effective date of termination.
ARTICLE III - TERRITORY
This Contract shall only apply to policies issued to insureds domiciled in the
United States of America, its territories and possessions and the District of
Columbia; but this limitation shall not apply to losses if the Company's
policies provide coverage outside the aforesaid territorial limits.
ARTICLE IV - EXCLUSIONS
This Contract does not apply to and specifically excludes the following:
A. The following general exclusions:
1. Business accepted by the Company as reinsurance from other insurers,
except agency reinsurance where risk underwriting and all servicing,
including claim handling, is done by the Company.
2. Any loss or liability accruing to the Company directly or indirectly
from any insurance written by or through any pool or association
including pools or associations in which membership by the Company is
required under any statutes or regulations.
3. Liability of the Company arising by contract, operation of law, or
otherwise from its participation or membership, whether voluntary or
involuntary, in any insolvency fund. "Insolvency Fund" includes any
guarantee fund, insolvency fund, plan, pool, association, fund or
other arrangement, howsoever denominated, established or governed,
which provides for any assessment of or payment or assumption by the
Company of part or all of any claim, debt, charge, fee, or other
obligation of an insurer,
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or its successors or assigns, which has been declared by any competent
authority to be insolvent, or which is otherwise deemed unable to meet
any claim, debt, charge, fee or other obligation in whole or in part.
4. Any loss or damage which is occasioned by war, invasion, hostilities,
acts of foreign enemies, civil war, rebellion, insurrection, military
or usurped power, or martial law or confiscation by order of any
government or public authority.
5. Business written to apply in excess of a deductible or self-insured
amount of more than $10,000 or business written to apply specifically
in excess over underlying insurance. However, this exclusion shall not
apply to Umbrella business.
6. Aviation liability including aerospace and satellite business.
7. Workers' Compensation business, including Longshoremen's and Harbor
Workers' Act and Xxxxx Act.
8. Kidnap and Xxxxxx, Surety, Credit, Financial Guarantee or Fiduciary
Insurance.
9. Liquor law liability, except where liquor constitutes less than 50.0%
of sales. Specifically excluded are bars and retail liquor stores.
10. Insurance written for governmental bodies, municipalities, schools and
colleges.
11. Insurance covering damages claims for the withdrawal, inspection,
repair, replacement, or loss of use of the insured's products or of
any property of which such products form a part of, or if such
products or property are withdrawn from the market or from use because
of any known or suspected defect or deficiency therein.
12. Liabilities for bodily injury, personal damage and/or property damage
from asbestos and/or asbestos products, including but not limited to
liability arising from the mining, manufacture, installation,
transport, storage, habitation or use of materials, products or
structure containing asbestos.
13. Any loss or liability accruing to the Company arising out of the
Employee Retirement Income Security Act of 1974 (ERISA) or amendments
thereto.
14. Liability for property damage caused by the subsidence of land and
arising out of or attributable to any operations of the insured.
15. Fidelity and Surety.
B. The following Casualty exclusions:
1. Watercraft liability except for boats less than 50 feet in length.
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2. All professional liability and/or malpractice insurance except as
pertains to xxxxxx and beauty shops, funeral directors, druggists,
opticians and optometrists.
3. Liability insurance relating to products or completed operations
involving the manufacture or importation of:
a. Cosmetics, hair or skin products;
b. Drugs, pharmaceuticals or agricultural chemicals;
c. Aircraft, aircraft parts or aircraft engines, all motorized
vehicles, or mobile equipment;
d. Heavy machinery and equipment, home power tools, or oil drilling
equipment;
e. Manufacture of automobile components critical to automobile
safety.
4. Liability insurance relating to premises or operations primarily
involving:
a. Aircraft or airports, as respects coverage for all liability
arising out of the ownership, maintenance, or use of any aircraft
or flight operations;
b. Amusement parks, carnivals, circuses, speed contests and racing;
c. Manufacturing, packing, handling, shipping or storage of
explosives, ammunitions, fuses, arms, magnesium, fireworks,
nitroglycerine, celluloid, pyroxylin or explosive substances
intended for use as an explosive;
d. Gas or public utility companies, gas or public utility works, or
gas lease operations;
e. Production, refining, handling, shipping or storage of natural or
artificial fuel gases, synthetic or coal or shale based fuel,
butane, propane, gasoline or liquefied petroleum gas;
f. Oil and gas risks, by which is meant drilling rigs, exploration
risks, cracking plants, refineries and depots, and oil and gas
pipelines;
g. Railroad operations, specifically "line" or "on track" operations
of actual railroads;
h. Ship building, ship repair yard, dry docks, stevedoring;
i. Tunneling, subway and underground mining;
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j. Offshore or subaqueous work;
k. Wrecking of structures over eight stories in height, or marine
wrecking;
1. Ski resorts;
m. Waste disposal and deposit sites except when written in
conjunction with either a refuse hauler or recycling account;
x. Xxxxx rentals without operators whose primary business is crane
rentals;
o. Scaffold installation, repair, removal or rental, unless
incidental;
p. Existence, construction or maintenance of dams;
q. Aerial crop dusting to include application of fertilizers,
herbicides, pesticides;
r. Warehousemen's legal liability;
s. Automobile racing and racetracks;
t. Taxis;
u. Blasting contractors;
v. Licensed roofing contractors whose primary business is such;
w. General contractors with revenues in excess of $50,000,000;
x. Wrap up construction projects.
5. Nuclear risks as defined in the "Nuclear Incident Exclusion Clause -
Liability Reinsurance" attached to and forming part of this Contract.
6. Pollution liability as excluded by the Company's policies. It is hereby
warranted that any Commercial General Liability policy issued by the
Company will include ISO pollution exclusion language.
7. Any loss, cost, or expense arising out of any governmental direction or
request that the insured test for, monitor, clean up, remove, contain,
treat, detoxify or neutralize pollutants.
If the Company provides insurance for an insured with respect to any premises,
operations, products or completed operations listed in subparagraphs 3 and 4 of
this paragraph B, except
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subparagraphs 4(c) and 4(d), and if such premises, operations, products or
completed operations constitute only a minor incidental part of the total
premises, operations, products or completed operations of the insured, such
exclusion(s) shall not apply.
If the Company is bound, without the knowledge of and contrary to the
instructions of the Company's supervisory underwriting personnel, on any
business falling within the scope of one or more of the exclusions set forth in
this paragraph B, these exclusions, except those set forth in subparagraphs 2,
4(c), 4(d), 5, 6 and 7, shall be suspended with respect to such business until
65 days (60 days plus 5 mailing days) after an underwriting supervisor of the
Company acquires knowledge of such business.
ARTICLE V - ATTACHMENT OF REINSURER'S LIABILITY
A. The Company shall report each reinsurance cession to the Reinsurer in
writing within 45 working days after the last working day of each month.
Each such report shall include the following information:
1. Name of insured.
2. Company policy number.
3. Policy effective date.
4. Total policy premium.
5. Reinsurer's gross premium.
6. Applicable ceding commission.
7. Net premium payable to the Reinsurer.
8. Policy limit written.
B. Each reinsurance cession reported by the Company shall be deemed to have
been accepted by the Reinsurer unless Xxxxxxx Global Reinsurance
Corporation, United States Branch, New York, New York, rejects it in
writing as provided in Article VII.
ARTICLE VI - RIGHT OF REJECTION
Xxxxxxx Global Reinsurance Corporation, USB, New York, New York, shall have the
right to reject any reinsurance bound by the Company by notifying the Company in
writing within 15 working days after receipt of the Company's report. However,
the liability of the Reinsurer
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with respect to any submission so rejected shall continue until the Company is
able to cancel the policy involved, subject to insurance code and regulatory
parameters, but not beyond 60 days after the Reinsurer's rejection notice is
received by the Company. The premium for the period any rejected submission is
covered shall be pro rata of what the annual premium would have been had the
submission been accepted.
ARTICLE VII - RETENTION AND LIMIT
A. The Company shall retain and be liable for the first $1,000,000 of
ultimate net loss as respects each risk, each loss. The Reinsurer shall
then be liable for the amount by which such ultimate net loss exceeds the
Company's retention, but the liability of the Reinsurer shall not exceed
$4,000,000 as respects any one risk, each loss.
B. The Company shall be permitted to carry underlying treaty reinsurance,
recoveries under which shall inure solely to the benefit of the Company and
be entirely disregarded in applying all of the provisions of this Contract.
ARTICLE VIII - DEFINITIONS
A. "Ultimate net loss" as used herein is defined as the sum or sums (including
loss in excess of policy limits, extra contractual obligations and any loss
adjustment expense, as hereinafter defined, which reduces the Company's
limit of liability under the policy involved) paid or payable by the
Company in settlement of claims and in satisfaction of judgments rendered
on account of such claims, after deduction of all salvage, all recoveries
and all claims on inuring insurance or reinsurance, whether collectible or
not. Nothing herein shall be construed to mean that losses under this
Contract are not recoverable until the Company's ultimate net loss has been
ascertained.
B. "Loss in excess of policy limits" and "extra contractual obligations" as
used herein shall be defined as follows:
1. "Loss in excess of policy limits" shall mean 90.0% of any amount paid
or payable by the Company in excess of its policy limits, but
otherwise within the terms of its policy, as a result of an action
against it by its insured or its insured's assignee to recover damages
the insured is legally obligated to pay to a third party claimant
because of the Company's alleged or actual negligence or bad faith in
rejecting a settlement within policy limits, or in discharging its
duty to defend or prepare the defense in the trial of an action
against its insured, or in discharging its duty to prepare or
prosecute an appeal consequent upon such an action.
2. "Extra contractual obligations" shall mean 90.0% of any punitive,
exemplary, compensatory or consequential damages, other than loss in
excess of policy limits, paid
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or payable by the Company as a result of an action against it by its
insured, its insured's assignee or a third party claimant, which action
alleges negligence or bad faith on the part of the Company in handling
a claim under a policy subject to this Contract. An extra contractual
obligation shall be deemed to have occurred on the same date as the
loss covered or alleged to be covered under the policy.
Notwithstanding anything stated herein, this Contract shall not apply to
any loss in excess of policy limits or any extra contractual obligation
incurred by the Company as a result of any fraudulent and/or criminal act
by any officer or director of the Company acting individually or
collectively or in collusion with any individual or corporation or any
other organization or party involved in the presentation, defense or
settlement of any claim covered hereunder.
C. "Loss adjustment expense" as used herein shall mean expenses allocable to
the investigation, defense and/or settlement of specific claims, including
litigation expenses and interest on judgments, but not including office
expenses or salaries of the Company's regular employees.
ARTICLE IX - CLAIMS AND LOSS ADJUSTMENT EXPENSE
A. Whenever a claim is reserved by the Company for an amount greater than 50%
of its retention hereunder and/or whenever a claim appears likely to result
in a claim under this Contract, the Company shall notify the Reinsurer. The
Reinsurer shall have the right to participate, at its own expense, in the
defense or control of any claim or suit or proceeding involving this
reinsurance.
B. All claim settlements made by the Company, provided they are within the
terms of this Contract, shall be binding upon the Reinsurer, and the
Reinsurer agrees to pay all amounts for which it may be liable upon receipt
of reasonable evidence of the amount paid by the Company.
C. In the event of loss hereunder, loss adjustment expenses incurred by the
Company in connection therewith which do not reduce the Company's limit of
liability under the policy involved shall be shared by the Company and the
Reinsurer in the proportion the ultimate net loss paid or payable by the
Reinsurer bears to the total loss paid or payable by the Company, prior to
any reinsurance recoveries, but after deduction of all salvage, subrogation
and other recoveries. However, if a verdict or judgment is reduced by any
process other than by the trial court, resulting in an ultimate saving to
the Reinsurer, or a judgment is reversed outright, the expenses incurred in
securing such reduction or reversal shall be shared by the Company and the
Reinsurer in the proportion that each benefits from such reduction or
reversal, and the expenses incurred up to the time of the original verdict
or judgment which do not reduce the Company's limit of liability under the
policy involved shall be shared in proportion to each party's interest in
such original verdict or judgment. The Reinsurer's liability for such loss
adjustment expenses shall be in addition to its liability for ultimate net
loss.
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ARTICLE X - SALVAGE AND SUBROGATION
The Reinsurer shall be credited with salvage (i.e., reimbursement obtained or
recovery made by the Company, less the actual cost, excluding salaries of
officials and employees of the Company and sums paid to attorneys as retainer,
of obtaining such reimbursement or making such recovery) on account of claims
and settlements involving reinsurance hereunder. Salvage thereon shall always be
used to reimburse the excess carriers in the reverse order of their priority
according to their participation before being used in any way to reimburse the
Company for its primary loss. The Company hereby agrees to enforce its rights to
salvage or subrogation relating to any loss, a part of which loss was sustained
by the Reinsurer, and to prosecute all claims arising out of such rights.
ARTICLE XI - PREMIUM
A. As premium for the reinsurance provided hereunder, the Company shall pay
the Reinsurer 100% of its excess limits net written premium as calculated
in Schedule A attached hereto.
B. Within 45 days after the end of each month within each underwriting year,
the Company shall report its net written premium for the month. The premium
due the Reinsurer shall be paid by the Company with this report at the rate
shown in paragraph A, multiplied by the actual amount of premium collected
by the Company during the month from policies allocated to the underwriting
year.
C. Within 45 days after the end of each month, the Company shall calculate and
report the unearned reinsurance premium as of the end of the month.
D. "Net written premium" as used herein is defined as gross written premium of
the Company for the classes of business reinsured hereunder, less
cancellations and return premiums, and less premiums ceded by the Company
for reinsurance which inures to the benefit of this Contract.
ARTICLE XII - COMMISSION (BRMA 10A)
A. The Reinsurer shall allow the Company a 35.0% commission on all premiums
ceded to the Reinsurer hereunder. The Company shall allow the Reinsurer
return commission on return premiums at the same rate.
B. It is expressly agreed that the ceding commission allowed the Company
includes provision for all dividends, commissions, taxes, assessments, and
all other expenses of whatever nature, except loss adjustment expense.
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ARTICLE XIII - OFFSET (BRMA 36C)
The Company and the Reinsurer shall have the right to offset any balance or
amounts due from one party to the other under the terms of this Contract. The
party asserting the right of offset may exercise such right any time whether the
balances due are on account of premiums or losses or otherwise.
ARTICLE XIV - ACCESS TO RECORDS (BRMA 1D)
The Reinsurer or its designated representatives shall have access at any
reasonable time to all records of the Company which pertain in any way to this
reinsurance.
ARTICLE XV - LIABILITY OF THE REINSURER
A. The liability of the Reinsurer shall follow that of the Company in every
case and be subject in all respects to all the general and specific
stipulations, clauses, waivers and modifications of the Company's policies
and any endorsements thereon. However, in no event shall this be construed
in any way to provide coverage outside the terms and conditions set forth
in this Contract.
B. Nothing herein shall in any manner create any obligations or establish any
rights against the Reinsurer in favor of any third party or any persons not
parties to this Contract.
ARTICLE XVI - NET RETAINED LIABILITY
This Contract shall apply only to that portion of any insurance or reinsurance
the Company retains net for its own account, and in calculating the amount of
any loss hereunder and the amount in excess of which this Contract attaches,
only loss or losses with respect to that portion of any insurance or reinsurance
the Company retains net for its own account shall be included. It is understood
and agreed, however, that the Reinsurer's liability hereunder with respect to
any loss or losses shall not be increased by reason of the inability of the
Company to collect from any other reinsurers, whether specific or general, any
amounts which may be due from them, whether such inability arises from the
insolvency of such other reinsurers or otherwise.
ARTICLE XVII - ERRORS AND OMISSIONS (BRMA 14F)
Inadvertent delays, errors or omissions made in connection with this Contract or
any transaction hereunder shall not relieve either party from any liability
which would have attached had such
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delay, error or omission not occurred, provided always that such error or
omission is rectified as soon as possible after discovery.
ARTICLE XVIII - TAXES (BRMA 50B)
In consideration of the terms under which this Contract is issued, the Company
will not claim a deduction in respect of the premium hereon when making tax
returns, other than income or profits tax returns, to any state or territory of
the United States of America or the District of Columbia.
ARTICLE XIX - UNAUTHORIZED REINSURERS
A. If the Reinsurer is unauthorized in any state of the United States of
America or the District of Columbia, the Reinsurer agrees to fund its share
of the Company's ceded unearned premium and outstanding loss and loss
adjustment expense reserves (including incurred but not reported loss
reserves) by:
1. Clean, irrevocable and unconditional letters of credit issued and
confirmed, if confirmation is required by the insurance regulatory
authorities involved, by a bank or banks meeting the NAIC Securities
Valuation Office credit standards for issuers of letters of credit and
acceptable to said insurance regulatory authorities; and/or
2. Escrow accounts for the benefit of the Company; and/or
3. Cash advances;
if, without such funding, a penalty would accrue to the Company on any
financial statement it is required to file with the insurance regulatory
authorities involved. The Reinsurer, at its sole option, may fund in other
than cash if its method and form of funding are acceptable to the insurance
regulatory authorities involved.
B. With regard to funding in whole or in part by letters of credit, it is
agreed that each letter of credit will be in a form acceptable to insurance
regulatory authorities involved, will be issued for a term of at least one
year and will include an "evergreen clause," which automatically extends
the term for at least one additional year at each expiration date unless
written notice of non-renewal is given to the Company not less than 30 days
prior to said expiration date. The Company and the Reinsurer further agree,
notwithstanding anything to the contrary in this Contract, that said
letters of credit may be drawn upon by the Company or its successors in
interest at any time, without diminution because of the insolvency of the
Company or the Reinsurer, but only for one or more of the following
purposes:
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1. To reimburse itself for the Reinsurer's share of unearned premiums
returned to insureds on account of policy cancellations, unless paid
in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer's share of losses and/or loss
adjustment expense paid under the terms of policies reinsured
hereunder, unless paid in cash by the Reinsurer;
3. To reimburse itself for the Reinsurer's share of any other amounts
claimed to be due hereunder, unless paid in cash by the Reinsurer;
4. To fund a cash account in an amount equal to the Reinsurer's share of
any ceded unearned premium and/or outstanding loss and loss adjustment
expense reserves (including incurred but not reported loss reserves)
funded by means of a letter of credit which is under non-renewal
notice, if said letter of credit has not been renewed or replaced by
the Reinsurer 10 days prior to its expiration date;
5. To refund to the Reinsurer any sum in excess of the actual amount
required to fund the Reinsurer's share of the Company's ceded unearned
premium and/or outstanding loss and loss adjustment expense reserves
(including incurred but not reported loss reserves), if so requested
by the Reinsurer.
In the event the amount drawn by the Company on any letter of credit is in
excess of the actual amount required for B(l), B(2) or B(4), or in the case
of B(3), the actual amount determined to be due, the Company shall promptly
return to the Reinsurer the excess amount so drawn.
ARTICLE XX - INSOLVENCY
A. In the event of the insolvency of the Company, this reinsurance shall be
payable directly to the Company or to its liquidator, receiver, conservator
or statutory successor immediately upon demand, with reasonable provision
for verification, on the basis of the liability of the Company without
diminution because of the insolvency of the Company or because the
liquidator, receiver, conservator or statutory successor of the Company has
failed to pay all or a portion of any claim. It is agreed, however, that
the liquidator, receiver, conservator or statutory successor of the Company
shall give written notice to the Reinsurer of the pendency of a claim
against the Company indicating the policy or bond reinsured which claim
would involve a possible liability on the part of the Reinsurer within a
reasonable time after such claim is filed in the conservation or
liquidation proceeding or in the receivership, and that during the pendency
of such claim, the Reinsurer may investigate such claim and interpose, at
its own expense, in the proceeding where such claim is to be adjudicated,
any defense or defenses that it may deem available to the Company or its
liquidator, receiver, conservator or statutory successor. The expense thus
incurred by the Reinsurer shall be chargeable, subject to the approval of
the Court, against the Company as part of the expense of conservation or
liquidation to the extent of a pro rata share of the benefit which may
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of conservation or liquidation to the extent of a pro rata share of the
benefit which may accrue to the Company solely as a result of the defense
undertaken by the Reinsurer.
B. Where two or more reinsurers are involved in the same claim and a majority
in interest elect to interpose defense to such claim, the expense shall be
apportioned in accordance with the terms of this Contract as though such
expense had been incurred by the Company.
C. It is further understood and agreed that, in the event of the insolvency of
the Company, the reinsurance under this Contract shall be payable directly
by the Reinsurer to the Company or to its liquidator, receiver or statutory
successor, except as provided by Section 4118(a) of the New York Insurance
Law or except (1) where this Contract specifically provides another payee
of such reinsurance in the event of the insolvency of the Company or (2)
where the Reinsurer with the consent of the direct insured or insureds has
assumed such policy obligations of the Company as direct obligations of the
Reinsurer to the payees under such policies and in substitution for the
obligations of the Company to such payees.
ARTICLE XXI - ARBITRATION
A. As a condition precedent to any right of action hereunder, in the event of
any dispute or difference of opinion hereafter arising with respect to this
Contract, it is hereby mutually agreed that such dispute or difference of
opinion shall be submitted to arbitration. One Arbiter shall be chosen by
the Company, the other by the Reinsurer, and an Umpire shall be chosen by
the two Arbiters before they enter upon arbitration, all of whom shall be
active or retired disinterested executive officers of insurance or
reinsurance companies or Lloyd's London Underwriters. In the event that
either party should fail to choose an Arbiter within 30 days following a
written request by the other party to do so, the requesting party may
choose two Arbiters who shall in turn choose an Umpire before entering upon
arbitration. If the two Arbiters fail to agree upon the selection of an
Umpire within 30 days following their appointment, each Arbiter shall
nominate three candidates within 10 days thereafter, two of whom neither
shall decline, and the decision shall be made by drawing lots.
B. Each party shall present its case to the Arbiters within 30 days following
the date of appointment of the Umpire. The Arbiters shall consider this
Contract as an honorable engagement rather than merely as a legal
obligation and they are relieved of all judicial formalities and may
abstain from following the strict rules of law. The decision of the
Arbiters shall be final and binding on both parties; but failing to agree,
they shall call in the Umpire and the decision of the majority shall be
final and binding upon both parties. Judgment upon the final decision of
the Arbiters may be entered in any court of competent jurisdiction.
C. If more than one reinsurer is involved in the same dispute, all such
reinsurers shall constitute and act as one party for purposes of this
Article and communications shall be made by the Company to each of the
reinsurers constituting one party, provided, however, that nothing herein
shall impair the rights of such reinsurers to assert several, rather than
joint, defenses
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or claims, nor be construed as changing the liability of the reinsurers
participating under the terms of this Contract from several to joint.
D. Each party shall bear the expense of its own Arbiter, and shall jointly and
equally bear with the other the expense of the Umpire and of the
arbitration. In the event that the two Arbiters are chosen by one party, as
above provided, the expense of the Arbiters, the Umpire and the arbitration
shall be equally divided between the two parties.
E. Any arbitration proceedings shall take place at a location mutually agreed
upon by the parties to this Contract, but notwithstanding the location of
the arbitration, all proceedings pursuant hereto shall be governed by the
law of the state in which the Company has its principal office.
ARTICLE XXII - SERVICE OF SUIT (BRMA 49C)
(Applicable if the Reinsurer is not domiciled in the United States of America,
and/or is not authorized in any State, Territory or District of the United
States where authorization is required by insurance regulatory authorities)
A. It is agreed that in the event the Reinsurer fails to pay any amount
claimed to be due hereunder, the Reinsurer, at the request of the Company,
will submit to the jurisdiction of a court of competent jurisdiction within
the United States. Nothing in this Article constitutes or should be
understood to constitute a waiver of the Reinsurer's rights to commence an
action in any court of competent jurisdiction in the United States, to
remove an action to a United States District Court, or to seek a transfer
of a case to another court as permitted by the laws of the United States or
of any state in the United States.
B. Further, pursuant to any statute of any state, territory or district of the
United States which makes provision therefor, the Reinsurer hereby
designates the party named in its Interests and Liabilities Agreement, or
if no party is named therein, the Superintendent, Commissioner or Director
of Insurance or other officer specified for that purpose in the statute, or
his successor or successors in office, as its true and lawful attorney upon
whom may be served any lawful process in any action, suit or proceeding
instituted by or on behalf of the Company or any beneficiary hereunder
arising out of this Contract.
ARTICLE XXIII - INTERMEDIARY (BRMA 23A)
X. X. Xxxxxx Co. is hereby recognized as the Intermediary negotiating this
Contract for all business hereunder. All communications (including but not
limited to notices, statements, premium, return premium, commissions, taxes,
losses, loss adjustment expense, salvages and loss settlements) relating thereto
shall be transmitted to the Company or the Reinsurer through X. X. Xxxxxx Co.,
Reinsurance Services, 0000 Xxxx 00xx Xxxxxx, Xxxxxxxxxxx, Xxxxxxxxx 00000.
Page 14
19
Payments by the Company to the Intermediary shall be deemed to constitute
payment to the Reinsurer. Payments by the Reinsurer to the Intermediary shall be
deemed to constitute payment to the Company only to the extent that such
payments are actually received by the Company.
IN WITNESS WHEREOF, the Company by its duly authorized representative has
executed this Contract as of the date undermentioned at:
Sacramento, California, this ________________ day of ____________________ 199__.
__________________________________________________________
Financial Pacific Insurance Company
Page 15
20
SCHEDULE A
to the
SEMIAUTOMATIC CASUALTY FACULTATIVE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1996
issued to
Financial Pacific Insurance Company
Sacramento, California
The ceded excess limits net written premium shall be calculated as follows:
TOTAL INSURED VALUE CEDED PREMIUM
------------------- -------------
1. $1,000,001 - $2,000,000 (12% - 20% of total primary premium based on
General and/or Auto Liability premium)*
2. $2,000,001 - $3,000,000 1/2 of 1 above not to fall below $750 minimum
3. $3,000,001 - $4,000,000 1/2 of 2 above not to fall below $500 minimum
4. $4,000,001 - $5,000,000 1/2 of 3 above not to fall below $500 minimum
---------------
* Application of 12 % - 20% rate is discretionary but subject to a minimum
premium of $1,000.
21
U.S.A.
NUCLEAR INCIDENT EXCLUSION CLAUSE -- LIABILITY -- REINSURANCE
(Approved by Lloyd's Underwriters' Fire and Non-Marine Association)
(1) This reinsurance does not cover any loss or liability accruing to the
Reassured as a member of, or subscriber to, any association of insurers or
reinsurers formed for the purpose of covering nuclear energy risks or as a
direct or indirect reinsurer of any such member, subscriber or association.
(2) Without in any way restricting the operation of paragraph (1) of this
Clause it is understood and agreed that for all purposes of this reinsurance all
the original policies of the Reassured (new, renewal and replacement) of the
classes specified in Clause II of this paragraph (2) from the time specified in
Clause III in this paragraph (2) shall be deemed to include the following
provision (specified as the Limited Exclusion Provision):
LIMITED EXCLUSION PROVISION.*
I. It is agreed that the policy does not apply under any liability
coverage, to (injury, sickness, disease, death or destruction
with respect to which an insured under the (bodily injury or
property damage policy is also an insured under a nuclear energy
liability policy issued by Nuclear Energy Liability Insurance
Association, Mutual Atomic Energy Liability Underwriters or
Nuclear Insurance Association of Canada, or would be an insured
under any such policy but for its termination upon exhaustion of
its limit of liability.
II. Family Automobile Policies (liability only), Special Automobile
Policies (private passenger automobiles, liability only), Farmers
Comprehensive Personal Liability Policies (liability only),
Comprehensive Personal Liability Policies (liability only) or
policies of a similar nature; and the liability portion of
combination forms related to the four classes of policies stated
above, such as the Comprehensive Dwelling Policy and the
applicable types of Homeowners Policies.
III. The inception dates and thereafter of all original policies as
described in II above, whether new, renewal or replacement, being
policies which either (a) become effective on or after 1st May,
1960, or (b) become effective before that date and contain the
Limited Exclusion Provision set out above; provided this
paragraph (2) shall not be applicable to Family Automobile
Policies, Special Automobile Policies, or policies or combination
policies of a similar nature, issued by the Reassured on New York
risks, until 90 days following approval of the Limited Exclusion
Provision by the Governmental Authority having jurisdiction
thereof.
(3) Except for those classes of policies specified in Clause II of
paragraph (2) and without in any way restricting the operation of paragraph (1)
of this Clause, it is understood and agreed that for all purposes of this
reinsurance the original liability policies of the Reassured (new, renewal and
replacement) affording the following coverages:
Owners, Landlords and Tenants Liability, Contractual Liability,
Elevator Liability, Owners or Contractors (including railroad)
Protective Liability, Manufacturers and Contractors Liability, Product
Liability, Professional and Malpractice Liability, Storekeepers
Liability, Garage Liability, Automobile Liability (including
Massachusetts Motor Vehicle or Garage Liability)
shall be deemed to include, with respect to such coverages, from the time
specified in Clause V of this paragraph (3), the following provision (specified
as the Broad Exclusion Provision):
BROAD EXCLUSION PROVISION.*
It is agreed that the policy does not apply:
I. Under any Liability Coverage to (injury, sickness, disease, death
or destruction (bodily injury or property damage
(a) with respect to which an insured under the policy is also an
insured under a nuclear energy liability policy issued by
Nuclear Energy Liability Insurance Association, Mutual
Atomic Energy Liability Underwriters or Nuclear Insurance
Association of Canada, or would be an insured under any such
policy but for its termination upon exhaustion of its limit
of liability; or
(b) resulting from the hazardous properties of nuclear material
and with respect to which (1) any person or organization is
required to maintain financial protection pursuant to the
Atomic Energy Act of 1954, or any law amendatory thereof, or
(2) the insured is, or had this policy not been issued would
be, entitled to indemnity from the United States of America,
or any agency thereof, under any agreement entered into by
the United States of America, or any agency thereof, with
any person or organization.
22
II. Under any Medical Payments Coverage, or under any Supplementary
Payments Provision relating to (immediate medical or surgical
relief to expenses incurred with respect (first aid, to (bodily
injury, sickness, disease or death resulting from the hazardous
properties of (bodily injury nuclear material and arising out of
the operation of a nuclear facility by any person or
organization.
III. Under any Liability Coverage to (injury, sickness, disease, death
or destruction (bodily injury or property damage resulting from
the hazardous properties of nuclear material, if
(a) the nuclear material (1) is at any nuclear facility owned
by, or operated by or on behalf of, an insured or (2) has
been discharged or dispersed therefrom;
(b) the nuclear material is contained in spent fuel or waste at
any time possessed, handled, used, processed, stored,
transported or disposed of by or on behalf of an insured; or
(c) the (injury, sickness, disease, death or destruction arises
out of the furnishing by an insured (bodily injury or
property damage
of services, materials, parts or equipment in connection
with the planning, construction, maintenance, operation or
use of any nuclear facility, but if such facility is located
within the United States of America, its territories, or
possessions or Canada, this exclusion (c) applies only to
(injury to or destruction of property at such nuclear
facility (property damage to such nuclear facility and any
property thereat.
IV. As used in this endorsement: "hazardous properties" include
radioactive, toxic or explosive properties; "nuclear material"
means source material, special nuclear material or byproduct
material; "source material", "special nuclear material", and
"byproduct material" have the meanings given them in the Atomic
Energy Act of 1954 or in any law amendatory thereof; "spent fuel"
means any fuel element or fuel component, solid or liquid, which
has been used or exposed to radiation in a nuclear reactor;
"waste" means any waste material (1) containing byproduct
material and (2) resulting from the operation by any person or
organization of any nuclear facility included within the
definition of nuclear facility under paragraph (a) or (b)
thereof; "nuclear facility" means
(a) any nuclear reactor,
(b) any equipment or device designed or used for (1) separating
the isotopes of uranium or plutonium, (2) processing or
utilizing spent fuel, or (3) handling processing or
packaging waste,
(c) any equipment or device used for the processing, fabricating
or alloying of special nuclear material if at any time the
total amount of such material in the custody of the insured
at the premises where such equipment or device is located
consists of or contains more than 25 grams of plutonium or
uranium 233 or any combination thereof, or more than 250
grams of uranium 235,
(d) any structure, basin, excavation, premises or place prepared
or used for the storage or disposal of waste, and includes
the site on which any of the foregoing is located, all
operations conducted on such site and all premises used for
such operations; "nuclear reactor" means any apparatus
designed or used to sustain nuclear fission in a
self-supporting chain reaction or to contain a xxxxxxxx xxxx
of fissionable material;
(With respect to injury to or destruction of property, the
word "injury" or "destruction"
("property damage" includes all forms of radioactive
contamination of property.
(includes all forms of radioactive contamination of property.
V. The inception dates and thereafter of all original policies
affording coverages specified in this paragraph (3), whether new,
renewal or replacement, being policies which become effective on
or after 1st May, 1960, provided this paragraph (3) shall not be
applicable to
(i) Garage and Automobile Policies issued by the Reassured on
New York risks, or
(ii) statutory liability insurance required under Chapter 90,
General Laws of Massachusetts, until 90 days following
approval of the Broad Exclusion Provision by the
Governmental Authority having jurisdiction thereof.
(4) Without in any way restricting the operation of paragraph (1) of this
Clause, it is understood and agreed that paragraphs (2) and (3) above are not
applicable to original liability policies of the Reassured in Canada and that
with respect to such policies this Clause shall be deemed to include the Nuclear
Energy Liability Exclusion Provisions adopted by the Canadian Underwriters'
Association of the Independent Insurance Conference of Canada.
--------------------------------------------------------------------------------
NOTE. The words printed in italics in the Limited Exclusion Provision and in the
Broad Exclusion Provision shall apply only relation to original liability
policies which include a Limited Exclusion Provision or a Broad Exclusion
Provision containing those words.
23
-------------------------------------------------------------------------------
INTERESTS AND LIABILITIES AGREEMENT
of
Allstate Insurance Company
Northbrook, Illinois
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
SEMIAUTOMATIC CASUALTY FACULTATIVE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1996
issued to and duly executed by
Financial Pacific Insurance Company
Sacramento, California
The Subscribing Reinsurer hereby accepts a 5.0% share in the interests and
liabilities of the "Reinsurer" as set forth in the attached Contract captioned
above.
This Agreement shall become effective on July 1, 1996, and shall continue in
force until terminated in accordance with the provisions of the attached
Contract.
The Subscribing Reinsurer's share in the attached Contract shall be separate
and apart from the shares of the other reinsurers, and shall not be joint with
the shares of the other reinsurers, it being understood that the Subscribing
Reinsurer shall in no event participate in the interests and liabilities of the
other reinsurers.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Xxxxx Xxxxxxxxxx, Xxxxxxxx, this 25th day of July, 1997.
[SIG]
--------------------------
ALLSTATE INSURANCE COMPANY
X. X. XXXXXX CO.
-------------------------------------------------------------------------------
Reinsurance Services
24
-------------------------------------------------------------------------------
INTERESTS AND LIABILITIES AGREEMENT
of
Constitution Reinsurance Corporation
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
SEMIAUTOMATIC CASUALTY FACULTATIVE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1996
issued to and duly executed by
Financial Pacific Insurance Company
Sacramento, California
The Subscribing Reinsurer hereby accepts a 15.0% share in the interests and
liabilities of the "Reinsurer" as set forth in the attached Contract captioned
above.
This Agreement shall become effective on July 1, 1996, and shall continue in
force until terminated in accordance with the provisions of the attached
Contract.
The Subscribing Reinsurer's share in the attached Contract shall be separate
and apart from the shares of the other reinsurers, and shall not be joint with
the shares of the other reinsurers, it being understood that the Subscribing
Reinsurer shall in no event participate in the interests and liabilities of the
other reinsurers.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
New York, New York, this 5th day of November, 1997.
[SIG]
--------------------------
CONSTITUTION REINSURANCE CORPORATION
X. X. XXXXXX CO.
-------------------------------------------------------------------------------
Reinsurance Services
25
INTERESTS AND LIABILITIES AGREEMENT
of
Xxxxxxx Global Reinsurance Corporation,
U.S. Branch
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
SEMIAUTOMATIC CASUALTY FACULTATIVE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1996
issued to and duly executed by
Financial Pacific Insurance Company
Sacramento, California
The Subscribing Reinsurer hereby accepts a 25.0% share in the interests and
liabilities of the "Reinsurer" as set forth in the attached contract captioned
above.
This Agreement shall become effective on July 1, 1996, and shall continue in
force until terminated in accordance with the provisions of the attached
contract.
The Subscribing Reinsurer's share in the attached Contract shall be separate
and apart from the shares of the other reinsurers, and shall not be joint with
the shares of the other reinsurers, it being understood that the Subscribing
Reinsurer shall in no event participate in the interests and liabilities of the
other reinsurers.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
New York, New York, this 8th day of July, 1997.
[SIG] VICE PRESIDENT
---------------------------------------
Xxxxxxx Global Reinsurance Corporation,
U.S. Branch
By: Xxxxxxx Global Offices, Inc.,
U.S. Manager
26
INTERESTS AND LIABILITIES AGREEMENT
of
SOREMA North America Reinsurance Company
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
SEMIAUTOMATIC CASUALTY FACULTATIVE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1996
issued to and duly executed by
Financial Pacific Insurance Company
Sacramento, California
The Subscribing Reinsurer hereby accepts a 7.5% share in the interests and
liabilities of the "Reinsurer" as set forth in the attached contract captioned
above.
This Agreement shall become effective on July 1, 1996, and shall continue in
force until terminated in accordance with the provisions of the attached
contract.
The Subscribing Reinsurer's share in the attached Contract shall be separate
and apart from the shares of the other reinsurers, and shall not be joint with
the shares of the other reinsurers, it being understood that the Subscribing
Reinsurer shall in no event participate in the interests and liabilities of the
other reinsurers.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
New York, New York, this 31st day of July, 1997.
/s/ XXXXXXX X. XXXXXXX
--------------------------------------------
SOREMA North America Reinsurance Company
XXXXXXX X. XXXXXXX, CPCU, ARA
ASSISTANT VICE PRESIDENT
27
REINSURANCE CONFIRMATION SIGNING PAGE
X.X. XXXXXX CO.
000 Xxxxxxxxxx Xxxxxx, Xxxxx 000 Telephone (000) 000-0000
Xxx Xxxxxxxxx, Xxxxxxxxxx 00000 Facsimile (000) 000-0000
COMPANY: Financial Pacific Insurance Company
CONTRACT: Casualty Facultative Semi-Automatic Reinsurance Contract
REINSURER: St. Xxxx Reinsurance Management Corporation
St. Xxxx Fire and Marine Insurance Company
On the basis of the terms outlined in X.X. Xxxxxx Co.'s Reinsurance
Confirmation dated September 25, 1996, the undersigned reinsurer confirms its
agreement to accept a share(s) in the Contract(s) listed below effective
July 1, 1996:
Your
Coverage Participation Your Your
Percent Limit Retention Percent Dollar Line Reference No.
------------ ---------- ---------- ------------- ----------- -------------
Cas Fac Semi-Auto 100.0% $4,000,000 $1,000,000 15% $600,000
Revisions/Remarks:
------------------------------------------------------------
------------------------------------------------------------
------------------------------------------------------------
Signed: /s/ [SIG]
---------------------------------------------------------
St. Xxxx Reinsurance Management Corporation
St. Xxxx Fire and Marine Insurance Company
Date: 11/18/96
---------------------------------------------------------
Please sign and return one copy.
28
INTERESTS AND LIABILITIES AGREEMENT
of
The Mercantile and General Reinsurance Company
of America
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
SEMIAUTOMATIC CASUALTY FACULTATIVE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1996
issued to and duly executed by
Financial Pacific Insurance Company
Sacramento, California
The Subscribing Reinsurer hereby accepts a 12.5% share in the interests and
liabilities of the "Reinsurer" as set forth in the attached Contract captioned
above.
This Agreement shall become effective on July 1, 1996, and shall continue in
force until terminated in accordance with the provisions of the attached
Contract.
The Subscribing Reinsurer's share in the attached Contract shall be separate
and apart from the shares of the other reinsurers, and shall not be joint with
the shares of the other reinsurers, it being understood that the Subscribing
Reinsurer shall in no event participate in the interests and liabilities of the
other reinsurers.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Morristown, New Jersey, this 25th day of August, 1997.
/s/ XXXXXXX X. XXXXXX
-------------------------------------------
XXXXXXX X. XXXXXX
Vice President
The Mercantile and General
Reinsurance Company of America
29
-------------------------------------------------------------------------------
INTERESTS AND LIABILITIES AGREEMENT
of
Winterthur Reinsurance Corporation of America
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
SEMIAUTOMATIC CASUALTY FACULTATIVE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1996
issued to and duly executed by
Financial Pacific Insurance Company
Sacramento, California
The Subscribing Reinsurer hereby accepts a 15.0% share in the interests and
liabilities of the "Reinsurer" as set forth in the attached Contract captioned
above.
This Agreement shall become effective on July 1, 1996, and shall continue in
force until terminated in accordance with the provisions of the attached
Contract.
The Subscribing Reinsurer's share in the attached Contract shall be separate
and apart from the shares of the other reinsurers, and shall not be joint with
the shares of the other reinsurers, it being understood that the Subscribing
Reinsurer shall in no event participate in the interests and liabilities of the
other reinsurers.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
New York, New York, this 17th day of July, 1997.
[SIG]
--------------------------
WINTERTHUR REINSURANCE COMPANY
X. X. XXXXXX CO.
-------------------------------------------------------------------------------
Reinsurance Services
30
Addendum No. 1
to the
Interests and Liabilities Agreement
of
Xxxxxxx Global Reinsurance Corporation,
U.S. Branch
New York, New York
with respect to the
Semiautomatic Casualty Facultative
Reinsurance Contract
Effective: July 1, 1996
issued to
Financial Pacific Insurance Company
Sacramento, California
It Is Hereby Agreed that Addendum No. 1 to the Contract shall form part of the
Contract, effective January 1, 1997.
It Is Further Agreed, effective January 1, 1997, that all references in this
Agreement to "Xxxxxxx Global Reinsurance Corporation, U.S. Branch" shall be
amended to read "Xxxxxxx Global Reinsurance Corporation of America."
In Witness Whereof, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this 14th day of May 1997.
---- --- ---
[SIG]
-------------------------------------------------
Financial Pacific Insurance Company
New York, New York, this 8th day of July 1997.
--- ---- ---
[SIG] VICE-PRESIDENT
-------------------------------------------------
Xxxxxxx Global Reinsurance Corporation of America
31
--------------------------------------------------------------------------------
ADDENDUM NO. 1
to the
INTERESTS AND LIABILITIES AGREEMENT
of
Constitution Reinsurance Corporation
New York, New York
with respect to the
SEMIAUTOMATIC CASUALTY FACULTATIVE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1996
issued to
Financial Pacific Insurance Company
Sacramento, California
IT IS HEREBY AGREED that Addendum No. 1 to the Contract shall form part of the
Contract, effective January 1, 1997.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this 14th day of May 1997.
[SIG]
-----------------------------------------------------
Financial Pacific Insurance Company
New York, New York, this 5th day of November 1997.
[SIG]
-----------------------------------------------------
Constitution Reinsurance Corporation
X. X. XXXXXX CO.
--------------------------------------------------------------------------------
Reinsurance Services
32
--------------------------------------------------------------------------------
ADDENDUM NO. 1
to the
INTERESTS AND LIABILITIES AGREEMENT
of
Winterthur Reinsurance Corporation of America
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
SEMIAUTOMATIC CASUALTY FACULTATIVE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1996
issued to
Financial Pacific Insurance Company
Sacramento, California
IT IS HEREBY AGREED that Addendum No. 1 to the Contract shall form part of the
Contract, effective January 1, 1997.
IT IS FURTHER AGREED that the Subscribing Reinsurer's share in the interests and
liabilities of the "Reinsurer" under the Contract shall be decreased from 15.0%
to 10.0%, effective January 1, 1997, with respect to business issued or renewed
on or after that date.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this 14th day of May 1997.
[SIG]
-----------------------------------------------------
Financial Pacific Insurance Company
New York, New York, this 17th day of July 1997.
[SIG]
-----------------------------------------------------
Winterthur Reinsurance Corporation of America
X. X. XXXXXX CO.
--------------------------------------------------------------------------------
Reinsurance Services
33
--------------------------------------------------------------------------------
ADDENDUM NO. 1
to the
INTERESTS AND LIABILITIES AGREEMENT
of
SOREMA North America Reinsurance Company
New York, New York
with respect to the
SEMIAUTOMATIC CASUALTY FACULTATIVE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1996
issued to
Financial Pacific Insurance Company
Sacramento, California
IT IS HEREBY AGREED that Addendum No. 1 to the Contract shall form part of the
Contract, effective January 1, 1997.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this 14th day of May 1997.
[SIG]
-----------------------------------------------------
Financial Pacific Insurance Company
New York, New York, this 23rd day of September 1997.
[SIG]
-----------------------------------------------------
SOREMA North America Reinsurance Company
X. X. XXXXXX CO.
--------------------------------------------------------------------------------
Reinsurance Services
34
--------------------------------------------------------------------------------
INTERESTS AND LIABILITIES AGREEMENT
entered into by and between
Financial Pacific Insurance Company
Sacramento, California
and
SCOR Reinsurance Company
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
IT IS HEREBY AGREED that the Subscribing Reinsurer shall have a 10.0% share in
the interests and liabilities of the "Reinsurer" as set forth in the attached
Contract entitled:
SEMIAUTOMATIC CASUALTY FACULTATIVE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1996
(as amended by Addendum No. 1)
IT IS FURTHER AGREED that this Agreement shall become effective on January 1,
1997, with respect to business issued or renewed on or after that date, and
shall continue in force until terminated in accordance with the provisions of
the attached Contract.
IT IS ALSO AGREED that the Subscribing Reinsurer's share in the attached
Contract shall be separate and apart from the shares of the other reinsurers,
and shall not be joint with the shares of the other reinsurers, it being
understood that the Subscribing Reinsurer shall in no event participate in the
interests and liabilities of the other reinsurers.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this 14th day of May 1997.
[SIG]
-----------------------------------------------------
Financial Pacific Insurance Company
South Barrington, Illinois, this 28th day of July 1997.
[SIG]
-----------------------------------------------------
SCOR Reinsurance Company
X. X. XXXXXX CO.
--------------------------------------------------------------------------------
Reinsurance Services
35
--------------------------------------------------------------------------------
INTERESTS AND LIABILITIES AGREEMENT
entered into by and between
Financial Pacific Insurance Company
Sacramento, California
and
Continental Casualty Company
Chicago, Illinois
(hereinafter referred to as the "Subscribing Reinsurer")
IT IS HEREBY AGREED that the Subscribing Reinsurer shall have a 7.5% share in
the interests and liabilities of the "Reinsurer" as set forth in the attached
Contract entitled:
SEMIAUTOMATIC CASUALTY FACULTATIVE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1996
(as amended by Addendum No. 1)
IT IS FURTHER AGREED that this Agreement shall become effective on January 1,
1997, with respect to business issued or renewed on or after that date, and
shall continue in force until terminated in accordance with the provisions of
the attached Contract.
IT IS ALSO AGREED that the Subscribing Reinsurer's share in the attached
Contract shall be separate and apart from the shares of the other reinsurers,
and shall not be joint with the shares of the other reinsurers, it being
understood that the Subscribing Reinsurer shall in no event participate in the
interests and liabilities of the other reinsurers.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this 14th day of May 1997.
[SIG]
-----------------------------------------------------
Financial Pacific Insurance Company
Chicago, Illinois, this 14th day of August 1997.
[SIG] Assistant Vice President
-----------------------------------------------------
Continental Casualty Company CA6649
X. X. XXXXXX CO.
--------------------------------------------------------------------------------
Reinsurance Services
36
--------------------------------------------------------------------------------
INTERESTS AND LIABILITIES AGREEMENT
entered into by and between
Financial Pacific Insurance Company
Sacramento, California
and
Allmerica Re
A Division of
The Hanover Insurance Company
Bedford, New Hampshire
(hereinafter referred to as the "Subscribing Reinsurer")
IT IS HEREBY AGREED that the Subscribing Reinsurer shall have a 10.0% share in
the interests and liabilities of the "Reinsurer" as set forth in the attached
Contract entitled:
SEMIAUTOMATIC CASUALTY FACULTATIVE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1996
(as amended by Addendum No. 1)
IT IS FURTHER AGREED that this Agreement shall become effective on January 1,
1997, with respect to business issued or renewed on or after that date, and
shall continue in force until terminated in accordance with the provisions of
the attached Contract.
IT IS ALSO AGREED that the Subscribing Reinsurer's share in the attached
Contract shall be separate and apart from the shares of the other reinsurers,
and shall not be joint with the shares of the other reinsurers, it being
understood that the Subscribing Reinsurer shall in no event participate in the
interests and liabilities of the other reinsurers.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this 14th day of May 1997.
[SIG]
-----------------------------------------------------
Financial Pacific Insurance Company
Florham Park, New Jersey, this 11th day of September 1997.
[SIG]
---------------------------------------------------------
Allmerica Re, A Division of The Hanover Insurance Company
X. X. XXXXXX CO.
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Reinsurance Services
37
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TERMINATION ADDENDUM
to the
INTERESTS AND LIABILITIES AGREEMENT
of
Allstate Insurance Company
Northbrook, Illinois
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
SEMIAUTOMATIC CASUALTY FACULTATIVE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1996
issued to
Financial Pacific Insurance Company
Sacramento, California
IT IS HEREBY AGREED that this Agreement and the Subscribing Reinsurer's 5.0%
share in the interests and liabilities of the "Reinsurer" under the Contract
shall be terminated on December 31, 1996, in accordance with the "runoff"
provisions of paragraph C of Article II - Commencement and Termination.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this 14th day of May 1997.
[SIG]
-----------------------------------------------------
Financial Pacific Insurance Company
South Barrington, Illinois, this 25 day of July 1997.
[SIG]
-----------------------------------------------------
Allstate Insurance Company
X. X. XXXXXX CO.
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Reinsurance Services
38
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TERMINATION ADDENDUM
to the
INTERESTS AND LIABILITIES AGREEMENT
of
The Mercantile and General Reinsurance Company
of America
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
SEMIAUTOMATIC CASUALTY FACULTATIVE
REINSURANCE CONTRACT
EFFECTIVE: JULY 1, 1996
issued to
Financial Pacific Insurance Company
Sacramento, California
IT IS HEREBY AGREED that this Agreement and the Subscribing Reinsurer's 12.5%
share in the interests and liabilities of the "Reinsurer" under the Contract
shall be terminated on December 31, 1996, in accordance with the "runoff"
provisions of paragraph C of Article II - Commencement and Termination.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Addendum as of the dates undermentioned at:
Sacramento, California, this 14th day of May 1997.
[SIG]
-----------------------------------------------------
Financial Pacific Insurance Company
Morristown, New Jersey, this 25 day of August 1997.
/s/ XXXXXXX X. XXXXX
-----------------------------------------------------
Xxxxxxx X. Xxxxx
Vice President
The Mercantile and General Reinsurance Company
of America
X. X. XXXXXX CO.
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Reinsurance Services
