Exhibit 10(o)
AGREEMENT TO TERMINATE
QUOTA SHARE REINSURANCE AGREEMENT
Effective as of January 1, 1995
(hereinafter referred to as the "Agreement")
between
21ST CENTURY INSURANCE COMPANY (formerly 20th Century Insurance Company)
and 21ST CENTURY CASUALTY COMPANY
(hereinafter referred to as the "Cedants")
and
AMERICAN INTERNATIONAL INSURANCE COMPANY
(hereinafter referred to as the "Reinsurer")
Pursuant to ARTICLE XIII of the Agreement, the parties hereto agree to terminate
such Agreement, effective 12:00 P.M. (Midnight) August 31, 2002 (the Termination
Date).
As stated in ARTICLE XIII of the Agreement, "In the event of termination, the
Reinsurer shall refund to the Cedants the applicable unearned premium minus the
ceding commission and shall continue to remain liable for all losses occurring
prior to the date of termination. However, if this Contract shall terminate
while a loss occurrence covered hereunder is in progress, it is agreed that,
subject to the other conditions of this contract, the Reinsurer is responsible
for its proportion of the entire loss.
In consideration for the early termination of this Agreement, the parties hereto
further agree that Reinsurer shall be entitled to be paid a fee by 21st Century
Insurance Company of nine hundred thousand dollars ($900,000), payable in cash
within 15 days of the Termination Date hereof.
IN WITNESS THEREOF, the parties hereto have caused this Agreement to be executed
by their duly authorized representatives.
21st CENTURY INSURANCE COMPANY
21ST CENTURY CASUALTY COMPANY
By:
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Title:
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Date:
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AMERICAN INTERNATIONAL INSURANCE COMPANY
By:
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Title:
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Date:
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