Exhibit
10.3


 


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

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  New York, New
  York, this            
  day of             in
  the year 2002.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Robert J.
  Coords

  	
   

  
	
   

  	
  National
  Union Fire Insurance Company

  of Pittsburgh, PA