exhibit1033






20\F7V1111      Quota Share Reinsurance Contract  Effective:  December 31, 2020    FedNat Insurance Company  Sunrise, Florida                                                                                    _______________________    Certain identified information has been omitted from this exhibit because it is not material and  would be competitively harmful if publicly disclosed.  Redactions are indicated by [***].    





 






20\F7V1111    Table of Contents      Article Page   1 Classes of Business Reinsured 1   2 Commencement and Termination 1   3 Territory 3   4 Exclusions 3   5 Retention and Limit 4   6 Loss in Excess of Policy Limits/Extra-Contractual Obligations 7   7 Other Reinsurance 7   8 Claims and Loss Adjustment Expenses 8   9 Salvage and Subrogation 8   10 Original Conditions 9   11 Ceding Commission 9   12 Reports and Remittances 9   13 Sanctions 10   14 Late Payments 10   15 Offset 11   16 Access to Records 12   17 Errors and Omissions (BRMA 14F) 12   18 Currency (BRMA 12A) 12   19 Taxes (BRMA 50B) 12   20 Federal Excise Tax (BRMA 17D) 12   21 Unauthorized Reinsurers 13   22 Special Funding 14   23 Insolvency 14   24 Arbitration 15   25 Confidentiality 16   26 Service of Suit (BRMA 49C) 17   27 Governing Law (BRMA 71B) 17   28 Severability (BRMA 72E) 18   29 Assignment and Assumption 18   30 Non-Waiver 18   31 Notices and Contract Execution 18   32 Intermediary 19  





 






20\F7V1111  Page 1    Quota Share Reinsurance Contract  Effective:  December 31, 2020    entered into by and between    FedNat Insurance Company  Sunrise, Florida  (hereinafter referred to as the "Company")    and    The Subscribing Reinsurer(s) Executing the  Interests and Liabilities Agreement(s)  Attached Hereto  (hereinafter referred to as the "Reinsurer")        Article 1 - Classes of Business Reinsured  A. By this Contract the Company obligates itself to cede to the Reinsurer and the Reinsurer  obligates itself to accept quota share reinsurance of the Company's Net Liability under  policies, contracts, and binders of insurance or reinsurance (hereinafter called "Policies") in  force at the effective date hereof or issued or renewed on or after that date, and classified  by the Company as Homeowners (Section I and II) and Dwelling Fire (Section I and II)  business, located in the State of Florida.    B. "Net Liability" as used in this Contract shall mean the Company's gross liability reinsured  under this Contract remaining after cessions, if any, to other inuring reinsurance.    C. The liability of the Reinsurer with respect to each cession hereunder shall commence  obligatorily and simultaneously with that of the Company, subject to the terms, conditions  and limitations hereinafter set forth.      Article 2 - Commencement and Termination  A. This Contract shall become effective at 12:01 a.m., Eastern Standard Time, December 31,  2020, with respect to losses arising out of Occurrences commencing at or after that time  and date, and shall remain in force until 12:01 a.m., Eastern Standard Time, December 31,  2021.    B. Notwithstanding the provisions of paragraph A above, the Company may terminate a  Subscribing Reinsurer's percentage share in this Contract at any time by giving written  notice to the Subscribing Reinsurer in the event any of the following circumstances occur:     1. The Subscribing Reinsurer's policyholders' surplus (or its equivalent under the  Subscribing Reinsurer's accounting system) at the inception of this Contract has been  reduced by [***]% or more of the amount of surplus (or the applicable equivalent)  12 months prior to that date; or  





 






20\F7V1111  Page 2       2. The Subscribing Reinsurer's policyholders' surplus (or its equivalent under the  Subscribing Reinsurer's accounting system) at any time during the Term of this  Contract has been reduced by [***]% or more of the amount of surplus (or the  applicable equivalent) at the date of the Subscribing Reinsurer's most recent financial  statement filed with regulatory authorities and available to the public as of the  inception of this Contract; or     3. The Subscribing Reinsurer's A.M. Best's rating has been assigned or downgraded  below A- and/or Standard & Poor's rating has been assigned or downgraded below  BBB+; or     4. The Subscribing Reinsurer has become, or has announced its intention to become,  merged with, acquired by or controlled by any other entity or individual(s) not  controlling the Subscribing Reinsurer's operations previously; or     5. A State Insurance Department or other legal authority has ordered the Subscribing  Reinsurer to cease writing business; or     6. The Subscribing Reinsurer has become insolvent or has been placed into liquidation,  receivership, supervision, administration, winding-up or under a scheme of  arrangement, or similar proceedings (whether voluntary or involuntary) or proceedings  have been instituted against the Subscribing Reinsurer for the appointment of a  receiver, liquidator, rehabilitator, supervisor, administrator, conservator or trustee in  bankruptcy, or other agent known by whatever name, to take possession of its assets  or control of its operations; or     7. The Subscribing Reinsurer has reinsured its entire liability under this Contract without  the Company's prior written consent; or     8. The Subscribing Reinsurer has ceased assuming new or renewal property or casualty  treaty reinsurance business; or     9. The Subscribing Reinsurer has hired an unaffiliated runoff claims manager that is  compensated on a contingent basis or is otherwise provided with financial incentives  based on the quantum of claims paid; or     10. The Subscribing Reinsurer has failed to comply with the funding requirements set forth  in the Unauthorized Reinsurers Article.    C.  Unless otherwise mutually agreed, 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 18 months following the effective date of termination.    D. Notwithstanding the provisions of paragraph C above, if the Company is prohibited or  precluded by the appropriate regulatory authorities, or by law (in those states where  applicable), from arranging mid-term cancellation or non-renewal of any Policies subject to  this Contract beyond their natural expiry, the Reinsurer agrees to extend coverage under  





 






20\F7V1111  Page 3    this Contract until such Policies may be terminated or non-renewed by the Company, but in  no event beyond 18 months after the effective date of termination or expiration.      Article 3 - Territory  The territorial limits of this Contract shall be identical with those of the Company's Policies, but  is limited to risks located within the State of Florida.      Article 4 - Exclusions  A. This Contract does not apply to and specifically excludes the following:     1. Reinsurance assumed by the Company under obligatory reinsurance agreements,  except business assumed by the Company from Citizens Property Insurance  Corporation.     2. Hail damage to growing or standing crops.     3. Business rated, coded or classified as Flood insurance or which should have been  rated, coded or classified as such.     4. Business rated, coded or classified as Mortgage Impairment and Difference in  Conditions insurance or which should have been rated, coded or classified as such.     5. Title insurance and all forms of Financial Guarantee, Credit and Insolvency.     6. Aviation, Ocean Marine, Boiler and Machinery, Fidelity and Surety, Accident and  Health, Animal Mortality and Workers Compensation and Employers Liability.     7. Errors and Omissions, Malpractice and any other type of Professional Liability  insurance.      8. Loss and/or damage and/or costs and/or expenses arising from seepage and/or  pollution and/or contamination, other than contamination from smoke.  Nevertheless,  this exclusion does not preclude payment of the cost of removing debris of property  damaged by a loss otherwise covered hereunder, subject always to a limit of [***]% of  the Company's property loss under the applicable original policy.     9. Loss or liability as excluded under the provisions of the "War Exclusion Clause"  attached to and forming part of this Contract.     10. Nuclear risks as defined in the "Nuclear Incident Exclusion Clause - Physical  Damage - Reinsurance" and the "Nuclear Incident Exclusion Clause - Liability -  Reinsurance" attached to and forming part of this Contract.     11. Loss or liability from any Pool, Association or Syndicate and any assessment or  similar demand for payment related to the FHCF or Citizens Property Insurance  Corporation.  





 






20\F7V1111  Page 4       12. Loss or 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 guaranty fund, insolvency fund, plan,  pool, association, fund or other arrangement, however 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,  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.     13. Losses in the respect of overhead transmission and distribution lines other than those  on or within 150 meters (or 500 feet) of the insured premises.     14. Mold, unless resulting from a peril otherwise covered under the policy involved.     15. Loss or liability as excluded under the provisions of the "Terrorism Exclusion" attached  to and forming part of this Contract.     16. Loss or Liability excluded under the Cyber Loss Limited Exclusion Clause (Property  Treaty Reinsurance) No. 1 attached to and forming part of this Contract.     17. Losses arising out of the peril of named storm.     18. Loss or Liability excluded under the Communicable Disease Exclusion (Property  Treaty Reinsurance) attached to and forming part of this Contract.      Article 5 - Retention and Limit  A. The Company will cede to the Reinsurer and the Reinsurer will accept as reinsurance of the  Company a quota share percentage participation (as set forth in the Reinsurer's Interests  and Liabilities Agreement as attached hereto and made a part hereof) of the Company's  Net Liability in respect of all Policies subject to this Contract.      B. Notwithstanding the provisions above, the liability (excluding Loss in Excess of Policy  Limits, Extra-Contractual Obligations and/or Loss Adjustment Expenses) of the Reinsurer  shall not exceed the following:     1. $[***] any one risk;     2. $[***] any one Occurrence.    C. Notwithstanding the provisions above, as respects Extra-Contractual Obligations and/or  Loss in Excess of Policy Limits, the liability of the Reinsurer shall not exceed an additional  policy limit.    D. "Occurrence" as respects Property business shall mean the sum of all individual losses  directly occasioned by any one disaster, accident or loss or series of disasters, accidents or  losses arising out of one event which occurs within the area of one state of the United  





 






20\F7V1111  Page 5    States or province of Canada and states or provinces contiguous thereto and to one  another.  However, the duration and extent of any one "Occurrence" shall be limited to all  individual losses sustained by the Company occurring during any period of 168 consecutive  hours arising out of and directly occasioned by the same event, except that the term  "Occurrence" shall be further defined as follows:     1. As regards a named storm, all individual losses sustained by the Company occurring  during any period (a) from and after 12:00 a.m. Eastern Standard Time on the date a  watch, warning, advisory, or other bulletin (whether for wind, flood or otherwise) for  such named storm is first issued by the National Hurricane Center ("NHC") or its  successor or any other division of the National Weather Service ("NWS"),  (b) continuing for a time period thereafter during which such named storm continues,  regardless of its category rating or lack thereof and regardless of whether the watch,  warning, or advisory or other bulletin remains in effect for such named storm and  (c) ending 96 hours following the issuance of the last watch, warning or advisory or  other bulletin for such named storm or related to such named storm by the NHC or its  successor or any other division of the NWS.  "Named storm" shall mean any storm or  storm system that has been declared by the NHC or its successor or any other  division of the NWS to be a named storm at any time, which may include, by way of  example and not limitation, hurricane, wind, gusts, typhoon, tropical storm, hail, rain,  tornados, cyclones, ensuing flood, storm surge, water damage, fire following, sprinkler  leakage, riots, vandalism, and collapse, and all losses and perils (including, by way of  example and not limitation, those mentioned previously in this sentence) in each case  arising out of, caused by, occurring during, occasioned by or resulting from such storm  or storm system, including by way of example and not limitation the merging of one or  more separate storm(s) or storm system(s) into a combined storm surge event.   However, the named storm need not be limited to one state or province or states or  provinces contiguous thereto.     2. As regards storm or storm systems that are not a named storm, including, by way of  example and not limitation, ensuing wind, gusts, typhoon, tropical storm, hail, rain,  tornados, cyclones, ensuing flood, storm surge, fire following, sprinkler leakage, riots,  vandalism, collapse and water damage, all individual losses sustained by the  Company occurring during any period of 144 consecutive hours arising out of, caused  by, occurring during, occasioned by or resulting from the same event.  However, the  event need not be limited to one state or province or states or provinces contiguous  thereto.     3. As regards riot, riot attending a strike, civil commotion, vandalism and malicious  mischief, all individual losses sustained by the Company occurring during any period  of 96 consecutive hours within the area of one municipality or county and the  municipalities or counties contiguous thereto arising out of and directly occasioned by  the same event.  The maximum duration of 96 consecutive hours may be extended in  respect of individual losses which occur beyond such 96 consecutive hours during the  continued occupation of an assured's premises by strikers, provided such occupation  commenced during the aforesaid period.     4. As regards earthquake (the epicenter of which need not necessarily be within the  territorial confines referred to in the introductory portion of this paragraph A) and fire  following directly occasioned by the earthquake, only those individual fire losses which  





 






20\F7V1111  Page 6    commence during the period of 168 consecutive hours may be included in the  Company's "Occurrence."     5. As regards "freeze," only individual losses directly occasioned by collapse, breakage  of glass and water damage (caused by bursting frozen pipes and tanks) may be  included in the Company's "Occurrence."     6. As regards firestorms, brush fires and any other fires or series of fires, irrespective of  origin (except as provided in subparagraphs 3 and 4 above), all individual losses  sustained by the Company which commence during any period of 168 consecutive  hours within the area of one state of the United States or province of Canada and  states or provinces contiguous thereto and to one another may be included in the in  the Company's "Occurrence."    E. For all Property "Occurrences" hereunder, the Company may choose the date and time  when any such period of consecutive hours commences, provided that no period  commences earlier than the date and time of the occurrence of the first recorded individual  loss sustained by the Company arising out of that disaster, accident, or loss or series of  disasters, accidents, or losses.  Furthermore:     1. For all "Occurrences" other than those referred to in subparagraphs D.1., D.2., and  D.3. above, only one such period of 168 consecutive hours shall apply with respect to  one event.     2. As regards those "Occurrences" referred to in subparagraphs D.1. and D.2., only one  such period of consecutive hours (as set forth therein) shall apply with respect to one  event, regardless of the duration of the event.       3. As regards those "Occurrences" referred to in subparagraph D.3. above, if the  disaster, accident, or loss or series of disasters, accidents, or losses occasioned by  the event is of greater duration than 96 consecutive hours, then the Company may  divide that disaster, accident, or loss or series of disasters, accidents, or losses into  two or more "Occurrences," provided that no two periods overlap and no individual  loss is included in more than one such period.    F. It is understood that losses arising from a combination of two or more perils as a result of  the same event may be considered as having arisen from one "Occurrence."   Notwithstanding the foregoing, the hourly limitations as stated above shall not be exceeded  as respects the applicable perils, and no single "Occurrence" shall encompass a time  period greater than 168 consecutive hours, except as regards those "Occurrences" referred  to in subparagraphs D.1., D.4., and D.6. above.    G. "Occurrence" as respects Casualty business shall mean an accident or occurrence or a  series of accidents or occurrences arising out of or caused by one event.    H. The Company shall be the sole judge of what constitutes one "risk."    I. "Term of this Contract" as used in this Contract shall mean the period from 12:01 a.m.,  Eastern Standard Time, December 31, 2020, to 12:01 a.m., Eastern Standard Time,  December 31, 2021.  If, however, this Contract is terminated, the "Term of this Contract" as  





 






20\F7V1111  Page 7    used in this Contract shall mean the period from 12:01 a.m., Eastern Standard Time,  December 31, 2020, to the effective time and date of the termination.      Article 6 - Loss in Excess of Policy Limits/Extra-Contractual Obligations  A. In the event that the Company pays or is held liable to pay an amount of Loss in Excess of  its Policy Limit, but otherwise within the terms of its Policy (hereinafter called "Loss in  Excess of Policy Limits") or any punitive, exemplary, compensatory, or consequential  damages or other amounts, including payments pursuant to applicable statutes, other than  Loss in Excess of Policy Limits (hereinafter called "Extra-Contractual Obligations") because  of alleged or actual bad faith or negligence on its part 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 policyholder, or in discharging its duty to prepare or prosecute an appeal  consequent upon such an action, or in otherwise handling a claim under a Policy subject to  this Contract, [***]% of the Loss in Excess of Policy Limits and/or [***]% of the Extra- Contractual Obligations shall be added to the Company's loss, if any, under the Policy  involved, and the sum thereof shall be subject to the provisions of the Retention and Limit  Article.    B. 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.    C. 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 Executive Officer or member of the Board of  Directors 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 (as determined by the final decision by a court  of competent jurisdiction).  "Executive Officer" as used herein shall mean any senior  executive who performs a policy-making function.    D. Recoveries from any form of insurance or reinsurance that protects the Company against  claims the subject matter of this Article shall inure to the benefit of this Contract.    E. Savings Clause (applicable only if the Subscribing Reinsurer is domiciled in the State of  New York):  In no event shall coverage be provided to the extent that such coverage is not  permitted under New York law.      Article 7 - Other Reinsurance  The Company shall be permitted to carry other 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.      





 






20\F7V1111  Page 8    Article 8 - Claims and Loss Adjustment Expenses  A. Losses shall be reported by the Company in summary form as hereinafter provided, but the  Company shall notify the Reinsurer immediately when a specific case involves unusual  circumstances or large loss possibilities.  The Reinsurer shall have the right to participate,  at its own expense, provided that it shall cooperate fully with the Company, in the defense  of any claim or suit or proceeding involving this reinsurance.    B. All loss settlements made by the Company, whether under strict Policy conditions or by way  of compromise, shall be binding upon the Reinsurer, and the Reinsurer agrees to pay or  allow, as the case may be, its proportion of each such settlement in accordance with the  Reports and Remittances Article.  It is agreed, however, that if the Reinsurer's share of any  loss is equal to or greater than $[***], the Reinsurer will pay its share of such loss as  promptly as possible after receipt of reasonable evidence of the amount paid by the  Company.  Inadvertent omission in dispatching the aforementioned notices will in no way  affect the obligation of the Reinsurer under this Contract, provided that the Company  informs the Reinsurer of such omission promptly upon discovery.    C. In the event of a claim under a Policy subject hereto, the Reinsurer shall be liable for its  proportionate share of Loss Adjustment Expenses (as defined herein) incurred by the  Company in connection therewith, and shall be credited with its proportionate share of any  recoveries of such expense.    D. "Loss Adjustment Expenses" as used in this Contract shall mean expenses assignable to  the investigation, appraisal, adjustment, settlement, litigation, defense and/or appeal of  claims, regardless of how such expenses are classified for statutory reporting purposes.   Loss Adjustment Expenses shall include, but not be limited to, interest on judgments,  expenses of outside adjusters, other extraordinary communication expenses incurred as a  result of a covered Occurrence, costs of supersedeas and appeal bonds, monitoring  counsel expenses, expenses and a pro rata share of salaries of the Company's field  employees, and expenses of other employees of the Company who have been temporarily  diverted from their normal and customary duties and assigned to the adjustment of losses  covered by this Contract, and declaratory judgment expenses or other legal expenses and  costs incurred in connection with coverage questions and legal actions connected thereto.   Loss Adjustment Expenses shall not include normal office expenses or salaries of the  Company's officers.      Article 9 - Salvage and Subrogation  The Reinsurer shall be credited with its proportionate share of salvage (i.e., reimbursement  obtained or recovery made by the Company, less the actual cost, excluding salaries of officers  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.  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 if, in the Company's opinion, it is economically  reasonable to do so.      





 






20\F7V1111  Page 9    Article 10 - Original Conditions  A. All reinsurance under this Contract shall be subject to the same rates, terms, conditions,  waivers and interpretations and to the same modifications and alterations, including judicial  interpretation, policy reformation and regulatory changes, as the respective Policies of the  Company.  The Reinsurer shall be credited with its exact proportion of the Company's Net  Written Premium.     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.    C. It is the intent of the parties that the Reinsurer shall follow the fortunes of the Company,  provided that the loss(es) within the applicable time period are within the terms, conditions  and limits of the original Policies.    D. However, in no event shall anything contained in this Article be construed in any way to  provide coverage outside the terms, conditions and limitations set forth in this Contract.        Article 11 - Ceding Commission   A. The Reinsurer shall allow the Company a [***]% commission on the Net Written Premium  for the Term of this Contract.  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.      Article 12 - Reports and Remittances  A. Within 30 days after the effective date of this Contract, the Company shall remit the  Reinsurer's share of the unearned premium (less commission thereon) applicable to subject  business in force at the effective date of this Contract.    B. Within 30 days after the end of each month, the Company shall report to the Reinsurer:     1. Ceded Net Written Premium for the month;     2. Commission thereon;     3. Ceded losses and Loss Adjustment Expenses paid during the month (net of any  recoveries during the month under the "cash call" provisions of the Claims and Loss  Adjustment Expenses Article).     The positive balance of (1) less (2) less (3) shall be remitted by the Company with its report.   Any balance shown to be due the Company shall be remitted by the Reinsurer as promptly  as possible after receipt and verification of the Company's report.    





 






20\F7V1111  Page 10    C. Within 60 days after the end of each calendar quarter, the Company shall report to the  Reinsurer the ceded unearned premiums and ceded outstanding loss reserves as of the  end of the calendar quarter.    D. The Company shall furnish the Reinsurer with such information as the Reinsurer may  require to complete its Annual Convention Statement.    E. "Net Written Premium" as used in this Contract shall mean Company's gross written  premium for the classes of business reinsured hereunder, less cancellations and return  premiums, and less premiums, if any, ceded by the Company for reinsurance which inures  to the benefit of this Contract and less an allowance for premium ceded by the Company for  Catastrophe Excess of Loss Protection, which allowance shall be equal to [***]% of the total  gross written premium for the classes of business reinsured hereunder, less cancellations  and return premiums, for the Term of this Contract.    F. "Catastrophe Excess of Loss Protection" as used herein includes any catastrophe excess  of loss reinsurance and/or protection purchased by the Company.      Article 13 - Sanctions  Neither the Company nor any Subscribing Reinsurer shall be liable for premium or loss under  this Contract if it would result in a violation of any mandatory sanction, prohibition or restriction  under United Nations resolutions or the trade or economic sanctions, laws or regulations of the  European Union, United Kingdom or United States of America that are applicable to either party.      Article 14 - Late Payments  A. The provisions of this Article shall not be implemented unless specifically invoked, in  writing, by one of the parties to this Contract.    B. In the event any premium, loss or other payment due either party is not received by the  intermediary named in the Intermediary Article (hereinafter referred to as the  "Intermediary") by the payment due date, the party to whom payment is due may, by  notifying the Intermediary in writing, require the debtor party to pay, and the debtor party  agrees to pay, an interest charge on the amount past due calculated for each such payment  on the last business day of each month as follows:     1. The number of full days which have expired since the due date or the last monthly  calculation, whichever the lesser; times     2. 1/365ths of the six-month United States Treasury Bill rate as quoted in The Wall Street  Journal on the first business day of the month for which the calculation is made; times     3. The amount past due, including accrued interest.     It is agreed that interest shall accumulate until payment of the original amount due plus  interest charges have been received by the Intermediary.    





 






20\F7V1111  Page 11    C. The establishment of the due date shall, for purposes of this Article, be determined as  follows:     1. Any claim or loss payment due the Company hereunder shall be deemed due 10 days  after the proof of loss or demand for payment is transmitted to the Reinsurer.  If such  loss or claim payment is not received within the 10 days, interest will accrue on the  payment or amount overdue in accordance with paragraph B above, from the date the  proof of loss or demand for payment was transmitted to the Reinsurer.     2. As respects a "cash call" made in accordance with the penultimate sentence of  paragraph B of the Claims and Loss Adjustment Expenses Article, payment shall be  deemed due thirty days after the proof of loss or demand for payment is transmitted to  the Reinsurer.  If such loss or claim payment is not received within the 10 days,  interest will accrue on the payment or amount overdue in accordance with  paragraph B above, from the date on which the proof of loss or demand for payment  was transmitted to the Reinsurer.     3. As respects any payment, adjustment or return due either party not otherwise  provided for in subparagraphs 1 and 2 of this paragraph C, the due date shall be as  provided for in the applicable section of this Contract.  In the event a due date is not  specifically stated for a given payment, it shall be deemed due 10 days following  transmittal of written notification that the provisions of this Article have been invoked.     For purposes of interest calculations only, amounts due hereunder shall be deemed paid  upon receipt by the Intermediary.    D. Nothing herein shall be construed as limiting or prohibiting a Subscribing Reinsurer from  contesting the validity of any claim, or from participating in the defense of any claim or suit,  or prohibiting either party from contesting the validity of any payment or from initiating any  arbitration or other proceeding in accordance with the provisions of this Contract.  If the  debtor party prevails in an arbitration or other proceeding, then any interest charges due  hereunder on the amount in dispute shall be null and void.  If the debtor party loses in such  proceeding, then the interest charge on the amount determined to be due hereunder shall  be calculated in accordance with the provisions set forth above unless otherwise  determined by such proceedings.  If a debtor party advances payment of any amount it is  contesting, and proves to be correct in its contestation, either in whole or in part, the other  party shall reimburse the debtor party for any such excess payment made plus interest on  the excess amount calculated in accordance with this Article.    E. Interest charges arising out of the application of this Article that are $[***] or less from any  party shall be waived unless there is a pattern of late payments consisting of three or more  items over the course of any 12-month period.      Article 15 - Offset  The Company and the Reinsurer may offset any balance or amount due from one party to the  other under this Contract or any other contract heretofore or hereafter entered into between the  Company and the Reinsurer, whether acting as assuming reinsurer or ceding company.  The  provisions of this Article shall not be affected by the insolvency of either party.  





 






20\F7V1111  Page 12        Article 16 - Access to Records  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, provided the Reinsurer  gives the Company at least 15 days prior notice of request for such access.  However, a  Subscribing Reinsurer or its designated representatives shall not have any right of access to the  records of the Company if it is not current in all undisputed payments due the Company.   "Undisputed" as used herein shall mean any amount that the Subscribing Reinsurer has not  contested in writing to the Company specifying the reason(s) why the payments are disputed.        Article 17 - 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  delay, error or omission not occurred, provided always that such error or omission is rectified as  soon as possible after discovery.      Article 18 - Currency (BRMA 12A)  A. Whenever the word "Dollars" or the "$" sign appears in this Contract, they shall be  construed to mean United States Dollars and all transactions under this Contract shall be in  United States Dollars.    B. Amounts paid or received by the Company in any other currency shall be converted to  United States Dollars at the rate of exchange at the date such transaction is entered on the  books of the Company.      Article 19 - 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 20 - Federal Excise Tax (BRMA 17D)  A. The Reinsurer has agreed to allow for the purpose of paying the Federal Excise Tax the  applicable percentage of the premium payable hereon as imposed under Section 4371 of  the Internal Revenue Code to the extent such premium is subject to the Federal Excise  Tax.    B. In the event of any return of premium becoming due hereunder the Reinsurer will deduct  the applicable percentage from the return premium payable hereon and the Company or its  agent should take steps to recover the tax from the United States Government.  





 






20\F7V1111  Page 13        Article 21 - 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 United States ceded  unearned premium and outstanding loss and Loss Adjustment Expenses 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. Trust accounts for the benefit of the Company; and/or     3. Cash advances;     if, without such funding, a penalty or other negative consequence, including without  limitation loss of credit for such reinsurance, either as an admitted asset or as a deduction  from liability on account of reinsurance ceded, would accrue to the Company on any  financial statement it is required to file with the insurance regulatory authorities involved.   The Reinsurer, at its option, may fund in other than cash if its method and form of funding  are acceptable to the Company and 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 thirty days prior to such  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:     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  Expenses 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 Expenses reserves  (including incurred but not reported loss reserves) funded by means of a letter of credit  which is under non-renewal notice, if such letter of credit has not been renewed or  replaced by the Reinsurer ten days or more prior to its expiration date;  





 






20\F7V1111  Page 14       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 Expenses reserves (including incurred but not reported loss  reserves), if so requested by the Reinsurer.     In the event that the amount drawn by the Company on any letter of credit is in excess of  the actual amount required for B(1), 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 22 - Special Funding  (This Article does not apply to any Subscribing Reinsurer (i) with a rating of A+ or higher at the  time of inception from A.M. Best Company or Standard & Poor's, (ii) that is an Underwriter at  Lloyd's of London, or (iii) that is unauthorized in any state of the United States of America or the  District of Columbia or any province or jurisdiction of Canada.)    A. If, during the Term of this Contract or thereafter, as respects any outstanding liabilities  hereunder, the Subscribing Reinsurer experiences any of the events or circumstances set  forth in paragraph B of the Commencement and Termination Article, the Subscribing  Reinsurer shall fund known outstanding losses and Loss Adjustment Expenses (including  incurred but not reported loss reserves) related thereto and uncollected paid losses and  Loss Adjustment Expenses (including incurred but not reported loss reserves) within fifteen  business days from the date of written demand by the Company to so fund.    B. The Subscribing Reinsurer shall have the option of determining the method of funding  referred to in paragraph A above, provided it is acceptable to the Company and the  insurance regulatory agency involved.  If the Subscribing Reinsurer elects to fund the  aforesaid loss by a letter of credit, the procedures set forth in the Unauthorized Reinsurers  Article as respects letters of credit shall apply.    C. If, during the Term of this Contract or thereafter, the Subscribing Reinsurer subsequently  remedies the applicable trigger(s) described in subparagraphs 1 and 2 of paragraph A  above which brought rise to the funding, the Company agrees to release those funds within  thirty days of the Company receiving proof of said remedy.      Article 23 - 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 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  





 






20\F7V1111  Page 15    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 accrue to the Company solely as a result of the defense undertaken by  the Reinsurer.    B. Where two or more Subscribing 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 24 - 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 the other 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 Subscribing Reinsurer is involved in the same dispute, all such  Subscribing Reinsurers shall, at the option of the Company, constitute and act as one party  





 






20\F7V1111  Page 16    for purposes of this Article and communications shall be made by the Company to each of  the Subscribing Reinsurers constituting one party, provided, however, that nothing herein  shall impair the rights of such Subscribing Reinsurers to assert several, rather than joint,  defenses or claims, nor be construed as changing the liability of the Subscribing 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 25 - Confidentiality  A. The Reinsurer hereby acknowledges that the documents, information and data provided to  it by the Company, whether directly or through an authorized agent, in connection with the  placement and execution of this Contract, including all information obtained through any  audits and any claims information between the Company and the Reinsurer, and any  submission or other materials relating to any renewal (hereinafter referred to as  "Confidential Information") are proprietary and confidential to the Company.      B. Except as provided for in paragraph C below, the Reinsurer shall not disclose any  Confidential Information to any third parties, including but not limited to the Reinsurer's  subsidiaries and affiliates, other insurance companies and their subsidiaries and affiliates,  underwriting agencies, research organizations, any unaffiliated entity engaged in modeling  insurance or reinsurance data, and statistical rating organizations.      C. Confidential Information may be used by the Reinsurer only in connection with the  performance of its obligations or enforcement of its rights under this Contract and will only  be disclosed when required by (1) retrocessionaires subject to the business ceded to this  Contract, (2) regulators performing an audit of the Reinsurer's records and/or financial  condition, or (3) external auditors performing an audit of the Reinsurer's records in the  normal course of business; provided that the Reinsurer advises such parties of the  confidential nature of the Confidential Information and their obligation to maintain its  confidentiality.  The Reinsurer shall be responsible for any breach of this provision by any  third-party representatives of the Reinsurer.  The Company requires that any third-party  representatives of the Reinsurer agree, in writing, to be bound by this Confidentiality Article  or by a separate written confidentiality agreement, containing terms no less stringent than  those set forth in this Article.    D. Notwithstanding the above, in the event that the Reinsurer is required by court order, other  legal process or any regulatory authority to release or disclose any or all of the Confidential  Information, the Reinsurer agrees to provide the Company with written notice of same at  least 10 days prior to such release or disclosure and to use its best efforts to assist the  Company in maintaining the confidentiality provided for in this Article.  





 






20\F7V1111  Page 17      E. Any disclosure of Non-Public Personally Identifiable Information shall comply with all state  and federal statutes and regulations governing the disclosure of Non-Public Personally  Identifiable Information.  "Non-Public Personally Identifiable Information" shall be defined as  this term or a similar term is defined in any applicable state, provincial, territory, or federal  law.  Disclosing or using this information for any purpose not authorized by applicable law is  expressly forbidden without the prior consent of the Company.    F. The parties agree that any information subject to privilege, including the attorney-client  privilege or attorney work product doctrine (collectively "Privilege") shall not be disclosed to  the Reinsurer until, in the Company's opinion, such Privilege is deemed to be waived or  otherwise compromised by virtue of its disclosure pursuant to this Contract.  Furthermore,  the Reinsurer shall not assert that any Privilege otherwise applicable to the Confidential  Information has been waived or otherwise compromised by virtue of its disclosure pursuant  to this Contract.      G. The provisions of this Article shall extend to the officers, directors and employees of the  Reinsurer and its affiliates, and shall be binding upon their successors and assigns.      Article 26 - 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 27 - Governing Law (BRMA 71B)  This Contract shall be governed by and construed in accordance with the laws of the State of  Florida.      





 






20\F7V1111  Page 18    Article 28 - Severability (BRMA 72E)  If any provision of this Contract shall be rendered illegal or unenforceable by the laws,  regulations or public policy of any state, such provision shall be considered void in such state,  but this shall not affect the validity or enforceability of any other provision of this Contract or the  enforceability of such provision in any other jurisdiction.      Article 29 - Assignment and Assumption  The obligations and duties of the Reinsurer under this Contract shall not be assigned to or  assumed by another reinsurer or other entity without the prior written consent of the Company.      Article 30 - Non-Waiver  The failure of the Company or Reinsurer to insist on compliance with this Contract or to exercise  any right, remedy or option hereunder shall not:  (1) constitute a waiver of any rights contained  in this Contract, (2) prevent the Company or Reinsurer from thereafter demanding full and  complete compliance, (3) prevent the Company or Reinsurer from exercising such remedy in  the future, nor (4) affect the validity of this Contract or any part thereof.      Article 31 - Notices and Contract Execution  A. Whenever a notice, statement, report or any other written communication is required by this  Contract, unless otherwise specified, such notice, statement, report or other written  communication may be transmitted by certified or registered mail, nationally or  internationally recognized express delivery service, personal delivery, electronic mail, or  facsimile.  With the exception of notices of termination, first class mail is also acceptable.    B. The use of any of the following shall constitute a valid execution of this Contract or any  amendments thereto:     1. Paper documents with an original ink signature;     2. Facsimile or electronic copies of paper documents showing an original ink signature;  and/or     3. Electronic records with an electronic signature made via an electronic agent.  For the  purposes of this Contract, the terms "electronic record," "electronic signature" and  "electronic agent" shall have the meanings set forth in the Electronic Signatures in  Global and National Commerce Act of 2000 or any amendments thereto.    C. This Contract may be executed in one or more counterparts, each of which, when duly  executed, shall be deemed an original.      





 






20\F7V1111  Page 19    Article 32 - Intermediary  Aon Benfield Inc., or one of its affiliated corporations duly licensed as a reinsurance  intermediary, is hereby recognized as the Intermediary negotiating this Contract for all business  hereunder.  All communications (including but not limited to notices, statements, premiums,  return premiums, commissions, taxes, losses, loss adjustment expense, salvages and loss  settlements) relating to this Contract will be transmitted to the Company or the Reinsurer  through the Intermediary.  Payments by the Company to the Intermediary will be deemed  payment to the Reinsurer.  Payments by the Reinsurer to the Intermediary will be deemed  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 specified below:    This         24th                 day of              February                               in the year       2021       .    FedNat Insurance Company     /s/ Michael Braun         





 






20\F7V1111    War Exclusion Clause        As regards interests which at time of loss or damage are on shore, no liability shall attach hereto in  respect of 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.      





 






20\F7V1111    Nuclear Incident Exclusion Clause - Physical Damage - Reinsurance (U.S.A.)      1. This Reinsurance does not cover any loss or liability accruing to the Reassured, directly or indirectly and whether as  Insurer or Reinsurer, from any Pool of Insurers or Reinsurers formed for the purpose of covering Atomic or Nuclear  Energy risks.    2. Without in any way restricting the operation of paragraph (1) of this Clause, this Reinsurance does not cover any loss  or liability accruing to the Reassured, directly or indirectly and whether as Insurer or Reinsurer, from any insurance  against Physical Damage (including business interruption or consequential loss arising out of such Physical Damage)  to:     I. Nuclear reactor power plants including all auxiliary property on the site, or     II. Any other nuclear reactor installation, including laboratories handling radioactive materials in connection with  reactor installations, and "critical facilities" as such, or     III. Installations for fabricating complete fuel elements or for processing substantial quantities of "special nuclear  material," and for reprocessing, salvaging, chemically separating, storing or disposing of "spent" nuclear fuel or  waste materials, or     IV. Installations other than those listed in paragraph (2) III above using substantial quantities of radioactive isotopes  or other products of nuclear fission.    3. Without in any way restricting the operations of paragraphs (1) and (2) hereof, this Reinsurance does not cover any  loss or liability by radioactive contamination accruing to the Reassured, directly or indirectly, and whether as Insurer or  Reinsurer, from any insurance on property which is on the same site as a nuclear reactor power plant or other nuclear  installation and which normally would be insured therewith except that this paragraph (3) shall not operate     (a) where Reassured does not have knowledge of such nuclear reactor power plant or nuclear installation, or     (b) where said insurance contains a provision excluding coverage for damage to property caused by or resulting  from radioactive contamination, however caused.  However on and after 1st January 1960 this sub-paragraph (b)  shall only apply provided the said radioactive contamination exclusion provision has been approved by the  Governmental Authority having jurisdiction thereof.    4. Without in any way restricting the operations of paragraphs (1), (2) and (3) hereof, this Reinsurance does not cover any  loss or liability by radioactive contamination accruing to the Reassured, directly or indirectly, and whether as Insurer or  Reinsurer, when such radioactive contamination is a named hazard specifically insured against.    5. It is understood and agreed that this Clause shall not extend to risks using radioactive isotopes in any form where the  nuclear exposure is not considered by the Reassured to be the primary hazard.    6. The term "special nuclear material" shall have the meaning given it in the Atomic Energy Act of 1954 or by any law  amendatory thereof.    7. Reassured to be sole judge of what constitutes:     (a) substantial quantities, and     (b) the extent of installation, plant or site.    Note.-Without in any way restricting the operation of paragraph (1) hereof, it is understood and agreed that     (a) all policies issued by the Reassured on or before 31st December 1957 shall be free from the application of the  other provisions of this Clause until expiry date or 31st December 1960 whichever first occurs whereupon all the  provisions of this Clause shall apply.     (b) with respect to any risk located in Canada policies issued by the Reassured on or before 31st December 1958  shall be free from the application of the other provisions of this Clause until expiry date or 31st December 1960  whichever first occurs whereupon all the provisions of this Clause shall apply.    12/12/57  N.M.A. 1119  BRMA 35B 





 






20\F7V1111  Page 1 of 2  Nuclear Incident Exclusion Clause - Liability - Reinsurance (U.S.A.)  (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     (bodily injury or property damage    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.   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.    





 






20\F7V1111  Page 2 of 2   II. Under any Medical Payments Coverage, or under any Supplementary Payments Provision relating to    (immediate medical or surgical relief    (first aid,    to expenses incurred with respect to    (bodily injury, sickness, disease or death    (bodily injury    resulting from the hazardous properties of 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     (bodily injury or property damage    arises out of the furnishing by an insured 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 critical mass 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 or 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  in relation to original liability policies which include a Limited Exclusion Provision or a Broad Exclusion Provision  containing those words.    21/9/67  N.M.A. 1590  





 






20\F7V1111    Terrorism Exclusion  (Property Treaty Reinsurance)        Notwithstanding any provision to the contrary within this Contract or any amendment thereto, it  is agreed that this Contract excludes loss, damage, cost or expense directly or indirectly caused  by, contributed to by, resulting from or arising out of or in connection with any act of terrorism,  as defined herein, regardless of any other cause or event contributing concurrently or in any  other sequence to the loss.    An act of terrorism includes any act, or preparation in respect of action, or threat of action  designed to influence the government de jure or de facto of any nation or any political division  thereof, or in pursuit of political, religious, ideological or similar purposes to intimidate the public  or a section of the public of any nation by any person or group(s) of persons whether acting  alone or on behalf of or in connection with any organization(s) or government(s) de jure or  de facto, and which:     1. Involves violence against one or more persons, or     2. Involves damage to property; or     3. Endangers life other than the person committing the action; or     4. Creates a risk to health or safety of the public or a section of the public; or     5. Is designed to interfere with or disrupt an electronic system.    This Contract also excludes loss, damage, cost or expense directly or indirectly caused by,  contributed to by, resulting from or arising out of or in connection with any action in controlling,  preventing, suppressing, retaliating against or responding to any act of terrorism.    Notwithstanding the above and subject otherwise to the terms, conditions, and limitations of this  Contract, in respect only of personal lines, this Contract will pay actual loss or damage (but not  related cost and expense) caused by any act of terrorism provided such act is not directly or  indirectly caused by, contributed to by, resulting from or arising out of or in connection with  radiological, biological, chemical, or nuclear explosion, pollution or contamination.  However, as  respects explosion, this exclusion shall not apply to any loss, cost, damage or expense resulting  from chemicals that are contained in a device or weapon solely to effect an explosion (as  opposed to those intended to cause contamination).  "Device or weapon" as used herein shall  mean an object whose sole purpose is to cause harm or destruction.  Nevertheless, under no  circumstances shall this Contract cover any biological, chemical, nuclear or radioactive pollution  or contamination arising directly or indirectly from such explosion nor shall it extend to cover a  nuclear explosion howsoever caused.    





 






20\F7V1111    CYBER LOSS LIMITED EXCLUSION CLAUSE (PROPERTY TREATY REINSURANCE) No. 1    1 Notwithstanding any provision to the contrary within this Contract or any endorsement  thereto, this Contract excludes all loss, damage, liability, cost or expense of whatsoever  nature directly or indirectly caused by, contributed to by, resulting from, arising out of or in  connection with:  1.1 any loss of, alteration of, or damage to or a reduction in the functionality, availability  or operation of a Computer System, unless subject to the provisions of paragraph 2;  1.2 any loss of use, reduction in functionality, repair, replacement, restoration or  reproduction of any Data, including any amount pertaining to the value of such Data.  2 Subject to the other terms, conditions and exclusions contained in this Contract, this  Contract will cover physical damage to property insured under the original policies and  any Time Element Loss directly resulting therefrom where such physical damage is  directly occasioned by any of the following perils:  fire, lightning, explosion, aircraft or vehicle impact, falling objects, windstorm, hail, tornado,  cyclone, hurricane, earthquake, volcano, tsunami, flood, freeze or weight of snow  Definitions  3 Computer System means any computer, hardware, software, communications system,  electronic device (including, but not limited to, smart phone, laptop, tablet, wearable  device), server, cloud or microcontroller including any similar system or any configuration  of the aforementioned and including any associated input, output, data storage device,  networking equipment or back up facility.   4 Data means information, facts, concepts, code or any other information of any kind that is  recorded or transmitted in a form to be used, accessed, processed, transmitted or stored  by a Computer System.  5 Time Element Loss means business interruption, contingent business interruption or any  other consequential losses.    LMA5410  06 March 2020  





 






20\F7V1111    COMMUNICABLE DISEASE EXCLUSION (PROPERTY TREATY REINSURANCE)    1. Notwithstanding any provision to the contrary within this Contract, this Contract excludes  any loss, damage, liability, claim, cost or expense of whatsoever nature, directly or  indirectly caused by, contributed to by, resulting from, arising out of, or in connection with  a Communicable Disease or the fear or threat (whether actual or perceived) of a  Communicable Disease regardless of any other cause or event contributing concurrently  or in any other sequence thereto.  2. As used herein, a Communicable Disease means any disease which can be transmitted  by means of any substance or agent from any organism to another organism where:  2.1. the substance or agent includes, but is not limited to, a virus, bacterium, parasite or  other organism or any variation thereof, whether deemed living or not, and  2.2. the method of transmission, whether direct or indirect, includes but is not limited to,  airborne transmission, bodily fluid transmission, transmission from or to any surface  or object, solid, liquid or gas or between organisms, and  2.3. the disease, substance or agent can cause or threaten damage to human health or  human welfare or can cause or threaten damage to, deterioration of, loss of value  of, marketability of or loss of use of property.      LMA5394  27 March 2020              





 






Page 1       The Interests and Liabilities Agreements, constituting 5 pages in total, have been omitted from this  exhibit because such agreements are not material and would be competitively harmful if publicly  disclosed.