Exhibit
10.8


 


Addendum I


 


to


 


Quota Share
Reinsurance Agreement


(Effective
January 1, 2002)


 


between


 


 


COAST NATIONAL
INSURANCE COMPANY (“Coast National”)

SECURITY NATIONAL INSURANCE COMPANY (“Security National”)

BRISTOL WEST INSURANCE COMPANY (“Bristol”)

BRISTOL WEST CASUALTY INSURANCE COMPANY (“Bristol”)

(hereinafter called the “Company”)


 


and


 


THE PARTICIPANTS
SUBSCRIBING TO THE RESPECTIVE

INTERESTS AND LIABILITIES AGREEMENTS TO WHICH THIS AGREEMENT

IS ATTACHED

(hereinafter called the “Reinsurer”)


 


It is understood and
agreed by the parties hereto that effective January 1, 2002 the following
article is amended to read as follows:


 


ARTICLE XIV


 


MAXIMUM SUBJECT NET
PREMIUM


 


It is agreed that the
Maximum Subject Net Premium written for the Company for Underwriting Years
2002, 2003 and 2004, shall equal $450,000,000, $575,000,000 and $650,000,000
respectively unless otherwise agreed to by the Reinsurer.


 


It is agreed that the
Maximum Subject Net Premium for Security National for Underwriting Years 2002,
2003 and 2004, shall equal $50,000,000, $65,000,000 and $80,000,000
respectively unless otherwise agreed to by the Reinsurer.


 


It is agreed that the
Maximum Subject Net Premium written in the state of Texas for Underwriting
Years 2002, 2003 and 2004, shall equal $20,000,000, $35,000,000 and $45,000,000
respectively unless otherwise agreed to by the Reinsurer.


 


If at any time the
Company estimates that the Maximum Subject Net Premium, as heretofore itemized,
will be exceeded they may request a revision in writing and the Reinsurer shall
respond to that request in writing, within 30 days, with its approval or
denial.  However, this request


 

















 


cannot be made for an
Underwriting Year prior to the year of the request of change.  Such approval shall not be unreasonably
withheld.


 


In the event the
aforementioned or otherwise agreed upon Maximum Subject Net Premiums written
for any individual Underwriting Year are exceeded, the Quota Share Percentage
applicable shall be the quotient of (1) the product of (A) the Quota Share
Percentage otherwise applicable time (B) the Maximum Subject Net Premium
written, divided by (2) the Subject Net Premium written.


 


Nothing herein contained shall alter, vary or extend any provision or
condition of this Contract other than as above stated.


 

















 


In Witness Whereof, the parties hereto have
caused this Addendum I to be signed in duplicate by their duly authorized
representatives.


 


Anaheim, California, this
             
day of
                       
in the year 2002.


 


	
   

  	
  /s/ Gregory J.
  Hammond

  	
   

  
	
   

  	
    Coast
  National Insurance Company

  



 


 


Davie, Florida, this
             
day of
                       
in the year 2002.


 


	
   

  	
  /s/ Gregory J.
  Hammond

  	
   

  
	
   

  	
    Security
  National Insurance Company

  



 


 


Philadelphia,
Pennsylvania, this
             
day of                        
in the year 2002.


 


	
   

  	
  /s/ Alexis S.
  Oster

  	
   

  
	
   

  	
    Bristol
  West Insurance Company

  



 


 


Independence, Ohio, this
             
day of
                       
in the year 2002.


 


	
   

  	
  /s/ Alexis S.
  Oster

  	
   

  
	
   

  	
    Bristol
  West Casualty Insurance Company

  



 


 


Bermuda, this
             
day of
                       
in the year 2002.


 


	
   

  	
  /s/ Jed Rhoads

  	
   

  
	
   

  	
   

  	
  Chubb Atlantic
  Reinsurance Specialists Ltd.

  on behalf of Federal Insurance Company