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                                                                  EXHIBIT 10.16

                     CONSULTING AND NONCOMPETITION AGREEMENT

      This Consulting and Noncompetition Agreement ("Agreement") is made as of
May 23, 2001 by and between Goran Capital Inc., a Canadian corporation, for
itself and on behalf of all of its affiliates except Symons International Group,
Inc., an Indiana corporation ("SIG") (collectively, "Goran") and Acceptance
Insurance Companies Inc., a Delaware corporation, for itself and on behalf of
all of its affiliates and assignees (collectively, "Purchaser"). Capitalized
terms used in this Agreement and not otherwise defined herein shall have the
meanings ascribed to them in the Asset Purchase Agreement (the "Asset Purchase
Agreement") dated as of May 23, 2001 by and among Goran, SIG, IGF Holdings,
Inc., an Indiana corporation ("IGFH"), IGF Insurance Company, an Indiana
insurance corporation ("IGF"), Acceptance and others.

      WHEREAS, pursuant to the Asset Purchase Agreement the Sellers sold and
Purchaser purchased certain assets associated with the Business;

      WHEREAS, Goran is highly knowledgeable regarding the Business, has been
involved in the direction and conduct of the Business for more than five years
and is also highly knowledgeable regarding the Business of Sellers as generally
conducted by them throughout the 2001 MPCI Crop Year and the 2001 Crop Hail Year
(the "Sellers Business");

      WHEREAS, Purchaser desires to induce Goran to provide Purchaser certain
consulting services between the Closing and the third anniversary date of the
Closing;

      WHEREAS, Purchaser desires to induce Goran not to engage in the Business
in any form prior to the third anniversary date of the Closing; and

      WHEREAS, Goran and Purchaser jointly desire that Goran receive reasonable
compensation (i) for its provision of consulting services to Purchaser and (ii)
for agreeing not to engage in the Business in any form prior to the third
anniversary date of the Closing.

      NOW, THEREFORE, Goran and Purchaser hereby agree as follows:

      1.    CONFIDENTIAL INFORMATION.

            (a)   Goran acknowledges that:

                  (i) The Business is a specialized form of insurance in a
            national market not capable of geographic description or limitation;
            and

                  (ii) Because of the nature of Goran's knowledge, experience
            and relationships with respect to the Business, Goran has and will
            continue to receive, conceive, originate, discover or develop,
            information and data not generally known in the insurance industry
            and not freely available to persons who are not providing services
            to Sellers, regarding Sellers' agents, reinsurers, underwriting
            practices and experience, business operations, legal and regulatory
            affairs, business opportunities, procedures, policies, products,
            services, customer lists, financial data, pricing, trade secrets,
            management, market research and forecasts, product development,
            marketing strategy and activities and other operations,

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            plans and perspectives of Sellers (collectively, "Confidential
            Information"). All such Confidential Information pertaining to the
            Business which is received, conceived, originated, discovered or
            developed at and before Closing shall be deemed "Proprietary
            Confidential Information" for purposes of this Agreement. All such
            Confidential Information other than Proprietary Confidential
            Information regardless of when received, conceived, originated,
            discovered or developed shall be deemed "Nonproprietary Confidential
            Information" for purposes of this Agreement.

            (b) Goran agrees that it will not use or disclose Proprietary
      Confidential Information at any time during or after termination of this
      Agreement and that it shall not use or disclose Nonproprietary
      Confidential Information at any time during the term of this Agreement.

      2.    NONCOMPETITION.

            (a) From the Closing until the third anniversary date of the
      Closing, Goran will not directly or indirectly:

                  (i) solicit, divert or interfere with any business, financial,
            insurance or other relationships which Sellers had, with respect to
            the Business, prior to Closing with any customer, agent, employee,
            vendor or reinsurer of Sellers prior to Closing, and which
            relationship Purchaser has not terminated; or

                  (ii) induce or attempt to induce any customer, agent,
            employee, vendor or reinsurer of Sellers, with respect to the
            Business immediately prior to Closing, to terminate, reduce or alter
            their relationship with Purchaser in any way detrimental to
            Purchaser; or

                  (iii) compete with Purchaser as an employer, agent, owner,
            resource, consultant or advisor to any entity providing products,
            services or advice directly related to any agricultural production
            risk or otherwise conducting Business.

            (b) Notwithstanding any other provision of this Agreement or any
      other contract, agreement or understanding of any kind whatsoever, Goran
      shall automatically and immediately forfeit all consideration paid or to
      be paid to it by Purchaser under this Agreement if it enters into any
      business, employment or other arrangement or activity that is
      detrimentally competitive the Business purchased by Purchaser pursuant to
      the Asset Purchase Agreement, or injurious to the financial interests of
      the Business purchased by Purchaser pursuant to the Asset Purchase
      Agreement, at any time prior to the third anniversary date of the Closing.

      3. CONSULTING SERVICES. Goran hereby agrees to be available to Purchaser
as reasonably requested by Purchaser, but in no event for more than 20 hours in
any given calendar month, for the provision of consulting services related to
the operation of the Business commencing on the date of the Closing and
continuing until the third anniversary date of the Closing (the "Consulting
Term").

      4. ADDITIONAL PAYMENT. For and in consideration of Goran's execution,
delivery and performance of this Agreement and subject to Paragraph 2 of this
Agreement, Purchaser will pay Goran Four Million Five Hundred Thousand Dollars
($4,500,000) at Closing.


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      5. ASSIGNMENT AND BINDING EFFECT. Goran may not transfer in any manner any
right to receive any portion of the consideration stated in Paragraph 4 of this
Agreement ("Consideration"). Goran hereby consents to Purchaser's assignment of
all of Purchaser's rights and obligations under this Agreement to any of
Purchaser's affiliates or successors. This Agreement shall be and remain binding
upon Goran and shall inure to the benefit of any successors in interest and
assigns of Purchaser.

      6. REMEDIES. Goran and Purchaser agree the restrictions contained in
paragraphs 1 and 2 under this Agreement are necessary for the protection of the
legitimate business interests and goodwill of the Business purchased by
Purchaser pursuant to the Asset Purchase Agreement, and Goran considers such
restrictions to be reasonable for such purposes. Goran agrees that any breach of
paragraph 1 or 2 will cause Purchaser substantial and irrevocable damage. In the
event of any such breach, in addition to such other remedies as may be
available, including the recovery of damages, Purchaser shall have the right to
injunctive relief to restrain or enjoin any actual or threatened breach of the
provisions of paragraphs 1 and 2. If Purchaser shall prevail in a legal
proceeding to remedy a breach or threatened breach of this Agreement, Purchaser
shall be entitled to recover reasonable attorneys' fees and costs incurred in
connection with such proceeding, in addition to any other relief it may be
granted. No remedy conferred upon any party by this Agreement is intended to be
exclusive of any other remedy, and each and every such remedy shall be
cumulative and in addition to any other remedy given hereunder. The failure to
enforce any of the provisions of this Agreement shall not be construed as a
waiver of such provisions. A waiver or failure to enforce by Purchaser on any
one occasion is effective only in that instance, and will not be construed as a
bar to, or waiver of, any right on any other occasion.

      7. APPLICABLE LAW. This Agreement, or any portion thereof, shall be
interpreted in accordance with the laws of the State of Iowa, irrespective of
the fact that Goran now is or may become organized in a different state or
country.

      8. SEVERABILITY. If any provision(s) of this Agreement shall be held
invalid or unenforceable, the validity and enforceability of all other
provisions of this Agreement shall not be affected thereby.

      9. ENTIRE AGREEMENT. This Agreement supersedes all prior agreements and
understandings between Goran and Purchaser concerning the subject matter hereof.
When this Agreement becomes effective it shall contain the entire agreement of
Purchaser and Goran relating to the subject matter hereof, and Purchaser and
Goran will have made no agreements, representations or warranties relating to
the subject matter of this Agreement that are not set forth herein.

      10. EFFECTIVENESS AND TERMINATION. This Agreement is conditioned upon and
effective at Closing. If the Asset Purchase Agreement is terminated pursuant to
its terms and conditions, this Agreement shall terminate concurrently with the
Asset Purchase Agreement.


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Dated this 23rd day of May, 2001.

                                        GORAN CAPITAL INC.

                                        By: /s/ Alan G. Symons
                                           -------------------------------------
                                        Name: Alan G. Symons
                                             -----------------------------------
                                        Title: Vice Chairman
                                              ----------------------------------


                                        ACCEPTANCE INSURANCE COMPANIES INC.

                                        By: /s/ John E. Martin
                                           -------------------------------------
                                        Name: John E. Martin
                                              ----------------------------------
                                        Title: President and Chief Executive
                                               Officer
                                               ---------------------------------


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