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Exhibit 10.7  

 
 

AMENDED AND RESTATED
  REINSURANCE AND POOLING AGREEMENT    
    

        WHEREAS, Zenith Insurance Company ("Zenith") owns 100% of the outstanding common stock of ZNAT Insurance Company
("ZNAT"), and Zenith Star Insurance Company ("Zenith Star"), and; 

        WHEREAS, Zenith, ZNAT and Zenith Star are affiliated under common ownership and desire to enter into a reinsurance pooling arrangement for
the sharing of premiums, losses and expenses in order to obtain more economical operations and uniform underwriting results; 

        NOW, THEREFORE, Zenith, ZNAT and Zenith Star agree as follows: 

I.    Definitions.  

        As used in this Agreement, the terms "underwriting operations", "underwriting liabilities", "underwriting expenses", "underwriting income" and "underwriting loss"
include respectively all of the operations, liabilities, expenses, income and losses directly related to the writing of insurance contracts or bonds, whether or not expired or canceled prior to the
effective date of this Agreement, or outstanding and in force upon the effective date of this Agreement, or at any time thereafter, but shall not be considered as including any of the following
related thereto: 

	1.
	Inter-company
balances;

	2.
	Real
estate expenses;

	3.
	Investment
expenses; or

	4.
	Directors'
fees and similar expenses of a strictly corporate nature. 

II.    Reinsurance of Underwriting Liabilities Ceded and Assumed.  

        ZNAT and Zenith Star hereby cede to Zenith, and Zenith accepts, assumes and reinsures, 100% of ZNAT and Zenith Star's net retained underwriting liabilities which
are outstanding when this Agreement takes effect or which arise out of underwriting operations conducted during the duration of this Agreement. 

        Zenith
cedes to ZNAT and Zenith Star, and ZNAT and Zenith Star accept, assume and reinsure their proportionate shares, as set forth in Article V hereof, of (a) all of the
underwriting liabilities ceded to Zenith under the preceding paragraph, and (b) Zenith's own net retained underwriting liabilities which are outstanding when this Agreement takes effect or
which arise out of underwriting operations conducted during the term of this Agreement. The parties agree that no participant shall assume business under this Agreement that it is not authorized to
write on a direct basis. 

III.    General Sharing of Premiums, Losses and Expenses.  

        Zenith, ZNAT and Zenith Star will share, to the extent of their proportionate share, (a) all premiums written by Zenith, ZNAT and Zenith Star during the
term of this Agreement, (b) all amounts paid or incurred during such period for losses, loss adjustment expenses, and other underwriting expenses arising out of their respective underwriting
operations, (c) all claims and settlements involving business covered by this Agreement, (d) all dividends to policyholders, and (e) all resulting net underwriting income or loss
for such period. 

        Notwithstanding
any provision of this Agreement, policyholder dividends declared and paid by any party hereto by reason of participating provisions in policies of California workers'
compensation insurance, shall reflect the direct experience of that party with respect to such insurance, and any other factors deemed relevant by its Board; subject, however, to the provisions of
California Insurance Code and any other applicable legal requirements. The aggregate expense of all such dividends declared and 

 

paid
shall be allocated among the parties hereto according to their respective percentages, as shown in Article V hereof; provided, however, that no such allocation shall be made with respect
to dividends on workers' compensation policies that become payable prior to the effective date of this Agreement. 

IV.    Settlement of Accounts.  

        Zenith, ZNAT and Zenith Star shall prepare, on a quarterly basis, a report listing all transactions during the preceding calendar quarter, including dividends
paid to policyholders, and a report of the proportionate share of other underwriting expenses and unallocated loss adjustment expenses relating to pooled transactions of the preceding calendar
quarter. Reasonable approximations may be substituted in applying expense factors for interim accounting, but there shall be an annual adjustment to the exact amounts. On a quarterly basis, Zenith,
ZNAT and Zenith Star shall settle accounts between them by payment of such amounts as may be owing, within forty-five (45) days of the end of the quarter. 

        If
ZNAT or Zenith Star's premium credit for a quarter exceeds its proportionate share of the amounts paid during such period for the items set forth in Paragraph III(b),
(c) and (d) arising out of the pooled underwriting operations, then Zenith shall pay ZNAT or Zenith Star an amount equal to the excess; if ZNAT or Zenith Star's premium credit for a
quarter is less than its proportionate share of such amounts paid during such period, then ZNAT or Zenith Star shall pay Zenith an amount equal to the deficiency. 

        On
a quarterly basis, a report shall be prepared for Zenith, ZNAT and Zenith Star of all accruals required to adjust cash transactions to the accounting basis required for accounting in
accordance with generally accepted practices for preparation of the NAIC annual statement form, and to adjust the expense allowance, the policyholders' dividend liability and other items necessary to
report under generally accepted accounting principles. 

V.    Proportionate Shares.  

        The results of underwriting operations will be apportioned cumulatively, without restatement of prior periods. The proportionate shares of the Companies are as
follows: 

	Zenith Insurance Company	 	97.5	%
	ZNAT Insurance Company	 	2.0	%
	Zenith Star Insurance Company	 	0.5	%

        The
proportionate shares of Zenith, ZNAT and Zenith Star may be changed from time to time by mutual consent as of the close of any calendar year quarter. Such changes shall be set forth
in an endorsement to this Agreement. 

VI.    Attachment of Liability.  

        The liability of Zenith, ZNAT and Zenith Star under this Agreement is joint and several, and shall attach simultaneously with the liability of the respective
ceding company. 

VII.    Records.  

        Zenith, ZNAT and Zenith Star shall have the right, at all reasonable times, to inspect the records of each other with respect to the business reinsured under this
Agreement and with respect to claims, losses or legal proceedings which involve or are likely to involve Zenith, ZNAT or Zenith Star. 

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VIII.    Unauthorized Reinsurance.  

        If reinsurance provided under this Agreement is disallowed to any party for financial statement purposes by the insurance regulatory authority of any state, due
to the laws or regulations of such state relating to reinsurance effective with unauthorized companies, then the unauthorized company shall secure the reinsurance ceded to the extent it has been
disallowed by one of the following methods: 

	(1)
	By
allowing the ceding insurer to withhold funds, under its exclusive control, in an amount equal to the liabilities carried by the ceding insurer;

	(2)
	By
placing the funds in trust under a trust agreement satisfactory to the respective regulatory authorities; or

	(3)
	By
a clean, irrevocable, and unconditional letter of credit issued by a qualified United States financial institution and in the possession of the ceding insurer. 

        Any
costs associated with the aforementioned provision of security shall be shared by the parties hereto according to their respective percentages, as shown in Article V hereof. 

IX.    Statutory Insolvency Provisions.  

        In the event of the insolvency or the appointment of a liquidator, receiver or other statutory successor of any Company ceding reinsurance hereunder, any amount
due the other Company as a ceding party shall be payable by the accepting party, immediately upon demand, on the basis of the liability of the ceding party under the contract or contracts reinsured
without diminution because of the insolvency of the ceding party or because such liquidator, receiver or other statutory successor has failed to pay all or a portion of any claims. Payments by the
accepting party shall be made directly to the ceding party or to the liquidator, receiver or statutory successor, except (a) where the contract specifically provides another payee of such
reinsurance in the event of the insolvency of the ceding party, and (b) where the accepting party with the consent of the direct insured or insureds has assumed such policy obligations of the
ceding party as direct obligations of the accepting party to payees under such policies in substitution for the obligations of the ceding party to such payees. 

        The
liquidator or receiver or statutory successor of the ceding party shall give written notice to the accepting party of the pendency of any claim against the insolvent ceding party on
the contract or contracts reinsured within a reasonable time after such claim is filed in the insolvency proceeding. During the pendency of such claim, the accepting party may investigate the claim
and interpose, at its own expense, in the proceeding where the claim is to be adjudicated any defense or defenses which it may deem available to the ceding party or its liquidator or receiver or
statutory successor. The expenses thus incurred by the accepting party shall be chargeable subject to court approval against the insolvent ceding party as part of the expense of liquidation to the
extent of a proportionate share of the benefit which may accrue to the ceding party solely as a result of the defense undertaken by the accepting party. 

X.    Arbitration.  

        In the event of a dispute between the parties with respect to the interpretation of this Agreement of the performance of the respective obligations of any party,
which dispute cannot be resolved in the normal course of business, the parties shall submit such dispute to a panel of arbitrators selected by the American Arbitration Association, which panel shall
meet in the City of Los Angeles and be governed by the Rules of the American Arbitration Association and whose decision shall be absolutely binding. 

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XI.    Effective Date.  

        This Agreement shall become effective 12:01 a.m. Pacific Standard Time on the 1st day of April, 2005, and replaces the Reinsurance and Pooling Agreements
dated January 1, 1986, April 1, 1989, and October 1, 1993, between the parties. This Agreement also replaces the Quota Share Contract of Reinsurance dated December 31,
1985. 

XII.    Term.  

        This Agreement shall remain in effect until terminated in accordance with the provisions of Article XIII below. Within ninety (90) days after the
effective date of termination, there shall be a final accounting and settlement of all amounts due between the parties to this Agreement. 

XIII.    Termination.  

        This Agreement may only be terminated upon twelve (12) months' notice in writing by any party to the other of its intention to terminate its participation
herein. 

        If
this Agreement is terminated, all rights and obligations of the parties with respect to the underwriting operations conducted prior to the termination shall be governed by the terms
of this Agreement. 

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        IN WITNESS WHEREOF, each of the undersigned parties has caused this Agreement to be executed on its behalf on this 21st day of March,
2005. 

	 	 	ZENITH INSURANCE COMPANY
	

/s/ JOHN J. TICKNER
 Witness	
 	

By:	
 	

/s/ JACK D. MILLER
 JACK D. MILLER

President
	

 	
 	
ZNAT INSURANCE COMPANY
	

/s/ JOHN J. TICKNER
 Witness	
 	

By:	
 	

/s/ JACK D. MILLER
 JACK D. MILLER

President
	

 	
 	
ZENITH STAR INSURANCE COMPANY
	

/s/ JOHN J. TICKNER
 Witness	
 	

By:	
 	

/s/ JACK D. MILLER
 JACK D. MILLER

President

5

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Exhibit 10.8  

 
 

WORKERS' COMPENSATION CONSOLIDATED CATASTROPHE
  AND TERRORISM EXCESS OF LOSS REINSURANCE CONTRACT    
    
    issued to    
    
    ZENITH INSURANCE COMPANY
  ZNAT INSURANCE COMPANY
  Woodland Hills,
California    
    
    ZENITH STAR INSURANCE COMPANY
  Austin, Texas    

   WORKERS' COMPENSATION CONSOLIDATED CATASTROPHE

AND TERRORISM EXCESS OF LOSS REINSURANCE CONTRACT  

TABLE OF CONTENTS  

	Article
 
	 	 
	 	Page

	 	 	Preamble	 	2
	1	 	Business Reinsured	 	2
	2	 	Limit and Retention	 	2
	3	 	Term	 	3
	4	 	Territory	 	3
	5	 	Warranties	 	3
	6	 	Exclusions	 	4
	7	 	Premium	 	6
	8	 	Reinstatement	 	6
	9	 	Definitions	 	7
	10	 	Net Retained Lines	 	8
	11	 	Liability of Reinsurer	 	8
	12	 	Currency	 	9
	13	 	Illegality	 	9
	14	 	Loss Reserve Funding	 	9
	15	 	Compliance With California SB 2093	 	10
	16	 	Taxes	 	10
	17	 	Notice of Loss and Loss Settlements	 	10
	18	 	Excess Recovery—Terrorism	 	11
	19	 	Offset	 	11
	20	 	Commutation	 	11
	21	 	Excess of Policy Limits	 	12
	22	 	Extra Contractual Obligations	 	13
	23	 	Delay, Omission or Error	 	13
	24	 	Access to Records	 	13
	25	 	Arbitration	 	14
	26	 	Service of Suit	 	14
	27	 	Insolvency	 	15
	28	 	Intermediary	 	15
	 	 	Company Signing Block	 	17

1

   WORKERS' COMPENSATION CONSOLIDATED CATASTROPHE

AND TERRORISM EXCESS OF LOSS REINSURANCE CONTRACT  

        This Contract is made and entered into by and between the ZENITH INSURANCE COMPANY and ZNAT INSURANCE COMPANY, both of Woodland Hills, California, and ZENITH STAR
INSURANCE COMPANY, Austin, Texas, and any and/or all of the subsidiary and/or affiliated companies which are or may hereafter be under the management of the Company (hereinafter together called the
"Company") and the Subscribing Reinsurer specifically identified in the Interests and Liabilities Agreement attached to and forming part of this Contract (hereinafter called the "Reinsurer"). 

        It
is understood and agreed that whenever the term "Company" is used in this Contract such term shall be held to include any and/or all of the subsidiary and/or affiliated companies
which are or may hereafter be under the management of the Company, provided, however, that prior notice be given to the Reinsurer of any such subsidiary and/or affiliated companies which may hereafter
come under the management of the Company prior to any risk attaching hereunder, with full particulars as to how such inclusion is likely to affect this Contract. In the event of either party
maintaining that such inclusion calls for alteration in existing terms, and an agreement not being arrived at, then the business of such included Company is covered only for a period of sixty days
after notice to the Company that the Reinsurer does not wish to cover the business so included. 

        It
is agreed that the rights and liabilities of the parties hereto shall be determined as though any existing internal pooling agreements or internal reinsurance arrangements among the
companies included within the definition of "Company," or as they may be amended from time to time, were non-existent. 

ARTICLE 1  

BUSINESS REINSURED  

        This Contract is to indemnify the Company in respect of the net excess liability as a result of any loss or losses which may occur during the term of this
Contract under any Policies covering business underwritten and classified by the Company as Workers' Compensation and/or Employer's Liability, in force at the inception of this Contract, or written or
renewed during the term of this Contract by or on behalf of the Company, subject to the terms and conditions herein contained. 

        It
is understood and agreed that the indemnity afforded by this Contract shall apply to each and every Loss Occurrence, whether involving any one or any combination of the classes of
business listed in the preceding paragraph, regardless of the number of Policies under which such loss is payable or the number of different interests insured. 

ARTICLE 2  

LIMIT AND RETENTION  

        The Reinsurer shall be liable in respect of each and every Loss Occurrence, for 100% of the Ultimate Net Loss over and above the initial Ultimate Net Loss
Retention(s) as set forth in the 

2

 

schedule
below, for each and every Loss Occurrence, subject to a limit of liability to the Reinsurer as set forth in the schedule below, for each and every Loss Occurrence: 

	Layer
 
	 	Retention
	 	Reinsurer's Limited Liability

	 
	 	Ultimate Net Loss

In respect of each and

Every Loss Occurrence
	 	In respect of each and

every Loss Occurrence

	Third Excess	 	$	10,000,000	 	$	10,000,000
	Fourth Excess	 	$	20,000,000	 	$	20,000,000
	Fifth Excess	 	$	40,000,000	 	$	35,000,000
	Sixth Excess	 	$	75,000,000	 	$	75,000,000

        Notwithstanding
the reinstatement provisions herein, it is understood and agreed that this Contract is subject to a maximum annual recovery, as set forth in the schedule below, for Loss
Occurrences as defined under TRlA of 2002: 

	 
	 	Maximum Annual Recovery for TRIA Losses

	Third Excess	 	$	10,000,000
	Fourth Excess	 	$	20,000,000
	Fifth Excess	 	$	35,000,000

        As
respects the Fourth, Fifth and Sixth Excess Layers of this Contract, recoveries from underlying layers will not be deducted when establishing Ultimate Net Loss for successive layers
for purposes of this Article. 

ARTICLE 3  

TERM  

        This Contract shall become effective at 12:01 a.m., Pacific Standard Time, January 1, 2005, and shall remain in full force and effect for one year,
expiring 12:01 a.m., Pacific Standard Time, January 1, 2006. 

        If
coverage under this Contract shall terminate while a loss covered hereunder is in progress, it is agreed that, subject to the other conditions of this Contract, the Reinsurer shall be
liable for its proportion of the entire loss resulting from such occurrence for which the Company is liable up to the limit of this Contract. 

        Reinsurance
hereunder shall apply only to those losses occurring during the term of this Contract and which are reported to the Reinsurer prior to January 1, 2013. 

ARTICLE 4  

TERRITORY  

        This Contract will cover wherever the Company's Policies cover. 

ARTICLE 5  

WARRANTIES  

        A.    As
regards the Third Excess Layer only: 

        It
is warranted for the purposes of this Contract that no claims shall be paid hereunder in respect of Worker's Compensation or Occupational Disease losses unless two persons have claims
of at least $50,000 each in the same Loss Occurrence. 

3

 

        B.    As
regards the Fourth, Fifth and Sixth Excess Layers only: 

        It
is warranted for the purposes of this Contract that the maximum amount which any one claimant can contribute to the Ultimate Net Loss from any one Loss Occurrence is $5,000,000, or so
deemed. The maximum any one life is to be calculated from the "ground up," not within the layer(s). 

        C.    As
regards the Third, Fourth, Fifth and Sixth Excess Layers: 

        It
is warranted for the purposes of this Contract, as respects Employer's Liability, that the Company's maximum Policy limit shall be $2,000,000, or so deemed. 

ARTICLE 6  

EXCLUSIONS  

        This Contract does not cover: 

        A.    Excess
insurance. 

        B.    Assumed
Reinsurance. 

        C.    Occupational
Disease losses, unless such losses arise out of a sudden and accidental event not exceeding 48 hours in duration, which event also involves traumatic
injuries and/or death. For the purposes of this Contract, "sudden" shall mean that the first and last exposure(s) of all individuals that contribute to the loss to the causative agent(s) shall have
occurred within a single and continuous 48 hour period; provided, however, that no termination of employment or plant closure shall be considered a sudden event. 

        D.    In
respect of any Policy issued or reinsured by the Company to cover the following occupations or employments, except when such occupations or employments are incidental
to and form a minor part of the usual occupation or employment of the insured: 

        1.     Working
and navigation of any vessel, other than light craft on inland waterways and dredging. 

        2.     Manufacture,
storage, filling, breaking down, or transport of 

        a.     Fireworks,
ammunition, fuse, cartridges, powder, nitroglycerine or any explosive. 

        b.     Gasses
and/or air under pressure in containers (but this exclusion shall not apply to the storage or distribution of liquid petroleum gas by wholesale or retail dealers). 

        3.     Underground
coal mines. 

        4.     Manufacture
of celluloid and pyroxylin. 

        5.     Erection
of structural iron and/or steel works, unless in conjunction with ordinary construction of buildings. Except that this exclusion shall not apply to insureds
engaged in steel work where such steel work erection is not beyond twelve stories in height. 

        6.     Contractors
doing building wrecking exclusively. 

        7.     Tunneling. 

        8.     Tower,
steeple and chimney shaft work. 

        9.     Operation
of dry docks, docks, quays, and wharves. USL&H exposures are deemed to be incidental so long as USL&H Gross Net Earned Premium Income (GNEPI) does not exceed
10% of the Company's total subject GNEPI. 

4

 

        10.   Construction
and maintenance of coffer dams. 

        11.   Subaqueous
construction and/or other subaqueous work. 

        12.   Oil
tanks and/or refining works. 

        13.   Aviation
risks involving flying risks, commercial airlines and airline crews. This exclusion does not apply to any "ground" personnel. 

        14.   Operations
involving atomic energy and nuclear fission. 

        15.   Operations
of a carrier by rail. 

        In
connection with those occupations or employments enumerated under Item D. above, if the Company, without the knowledge of and contrary to the instructions of its head office, is bound
or is unknowingly exposed on a risk falling otherwise within one of the exclusions set forth, such risk is covered until the Company's head office receives knowledge thereof and, pending cancellation
of such risk by the Company, for a further period of 30 days after receipt of such knowledge by the head office of the Company. 

        Where
Policies are issued by the Company through its membership of or participation in an assigned risk plan or similar facility which involves occupations or employments prohibited
under Item D. above, such Policies are not excluded under this Contract. 

        E.    In
no event will this Contract provide coverage for loss, damage, cost or expense directly or indirectly caused by, contributed to by, resulting from, or arising out of
or in connection with biological, chemical, or nuclear explosion, pollution, and contamination as a result of terrorism. 

        F.     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, howsoever 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. 

        G.    War. 

        H.    Nuclear
Incident. 

        I.     Professional
Sports Teams. 

        J.     FELA,
except incidental. 

        K.    Jones
Act, except incidental. 

        L.    As
regards the Sixth Excess layer only: 

        Indemnity,
damage, costs or expense of whatsoever nature directly or indirectly caused by, contributed to by, resulting from or arising out of or in connection with any "Act of
Terrorism" as defined in the Terrorism Risk Insurance Act of 2002 (the "Act"), regardless of any other cause or event contributing concurrently or in any other sequence to the loss. 

5

   ARTICLE 7  

PREMIUM  

        A.    The
premium to be paid to the Reinsurer shall be calculated at the rates set out below multiplied by the Gross Net Earned Premium Income (as defined herein) of the
Company for the term of this Contract, subject to the annual minimum and deposit premiums stated hereunder: 

	PREMIUM SCHEDULE
 

	Layer
 
	 	Rate
	 	Deposit Premium
	 	Minimum Premium

	Third Excess	 	0.286	%	$	3,000,000	 	$	2,400,000
	Fourth Excess	 	0.352	%	$	3,700,000	 	$	2,960,000
	Fifth Excess	 	0.367	%	$	3,850,000	 	$	3,080,000
	Sixth Excess	 	0.357	%	$	3,750,000	 	$	3,000,000

        The
annual deposit premiums shall be payable to the Reinsurer by the Company in installments as follows: 

	INSTALLMENT SCHEDULE
 

	Layer
 
	 	January 1, 2005
	 	April 1, 2005
	 	July 1, 2005
	 	October 1, 2005

	Third Excess	 	$	750,000	 	$	750,000	 	$	750,000	 	$	750,000
	Fourth Excess	 	$	925,000	 	$	925,000	 	$	925,000	 	$	925,000
	Fifth Excess	 	$	962,500	 	$	962,500	 	$	962,500	 	$	962,500
	Sixth Excess	 	$	937,500	 	$	937,500	 	$	937,500	 	$	937,500

        B.    As
soon as practicable following the expiration of this Contract, the Company shall forward to the Reinsurer a statement of its Gross Net Earned Premium Income for the
term of the Contract. The earned premium due to the Reinsurer shall be calculated for each Layer by multiplying the rates specified in the Premium Schedule above by the Company's Gross Net Earned
Premium Income. 

        Should
the premium so calculated exceed the deposit premium paid in accordance with Paragraph A. above, the Company will immediately pay the Reinsurer the difference. Should the
premium so calculated be less than the deposit premium paid in accordance with Paragraph A. above, the Reinsurer will immediately refund to the Company the difference, subject to the minimum
premium specified in the Premium Schedule. 

        The
term "Gross Net Earned Premium Income" as used in this Contract shall mean the gross earned premium income of the Company for the business covered by this Contract, less premiums
paid for reinsurances, recoveries under which would inure to the benefit of this Contract. 

ARTICLE 8  

REINSTATEMENT  

        Loss payments under this Contract will reduce the limit of coverage afforded by the amounts paid, but the limit of coverage will be reinstated from the time of
the occurrence of the loss, and for each amount so reinstated, the Company agrees to pay, simultaneously with the Reinsurer's loss payment, an additional premium calculated at pro rata of the
Reinsurer's premium for the term of this Contract, being pro rata only as to the fraction of the face value of this Contract (i.e., the fraction of the Reinsurer's limit of liability outlined in the
LIMIT AND RETENTION ARTICLE) so reinstated. Nevertheless, the Reinsurer's liability hereunder shall never exceed the Reinsurer's limit of liability outlined in the LIMIT AND RETENTION ARTICLE in
respect of any one Loss Occurrence and, 

6

 

subject
to the limit in respect of any one Loss Occurrence, shall be further limited to the following amount(s) during the term of the Contract by reason of any and all claims arising hereunder: 

	Layer
 
	 	Reinsurer's limits of liability in respect of any and all

claims arising hereunder

	Third Excess	 	$	20,000,000
	Fourth Excess	 	$	40,000,000
	Fifth Excess	 	$	70,000,000
	Sixth Excess	 	$	150,000,000

        If
at the time of a loss settlement hereon the reinsurance premium, as calculated in accordance with the PREMIUM ARTICLE, is unknown, the above calculation of reinstatement premium shall
be based upon the deposit premium, subject to adjustment when the reinsurance premium is finally established. 

ARTICLE 9  

DEFINITIONS  

        A.    The
term "Loss Occurrence" as used in this Contract shall mean any one disaster or casualty or accident or loss or series of disasters or casualties or accidents or
losses arising out of or caused by one event. 

        Occupational
Disease or cumulative trauma shall not be covered under this Contract unless as a result of a sudden and accidental event not exceeding 48 hours duration, and which
event also involves traumatic injuries and/or death. All resulting occupational disease or cumulative trauma losses shall be considered as one Loss Occurrence or may be combined with losses classified
as other than occupational disease or cumulative trauma which arise out of the same event and the combination of such losses shall be considered as one Loss Occurrence with the meaning hereof. 

        Loss
Occurrence shall also include: 

        1.     Indemnity,
damage, costs or expense of whatsoever nature directly or indirectly caused by, contributed to by, resulting from or arising out of or in connection with any
"Act of Terrorism" as defined in the Terrorism Risk Insurance Act of 2002 (the "Act"), regardless of any other cause or event contributing concurrently or in any other sequence to the loss. (Note:
This coverage to be excluded from Sixth Excess layer-see Exclusion L.) 

        2.     Actual
loss or damage caused by any act of terrorism which does not meet the definition of "Act of Terrorism" set forth in the Terrorism Risk Insurance Act of 2002. 

        B.    The
term "Ultimate Net Loss" as used in this Contract shall mean the actual loss paid by the Company or for which the Company becomes liable to pay, such loss to include
90% of any Extra Contractual Obligation (and expense) as defined in the EXTRA CONTRACTUAL OBLIGATIONS ARTICLE, 90% of any Excess of Policy Limit as defined in the EXCESS OF POLICY LIMITS ARTICLE,
expenses of litigation and interest, claim-specific declaratory judgment expenses, and all other loss expense of the Company including subrogation, salvage, and recovery expenses (office expenses and
salaries of officials and employees not classified as loss adjusters are not chargeable as expenses for purposes of this paragraph), but salvages and all recoveries, including recoveries under all
reinsurances which inure to the benefit of this Contract (whether recovered or not), shall be first deducted from such loss to arrive at the amount of liability attaching hereunder. 

        All
salvages, recoveries or payments recovered or received subsequent to loss settlement hereunder shall be applied as if recovered or received prior to the aforesaid settlement, and all
necessary adjustments shall be made by the parties hereto. 

7

 

        The
Company is permitted to carry underlying quota share and excess of loss reinsurance, recoveries under which shall inure to the Company's sole benefit and shall be disregarded for all
purposes hereof. 

        For
purposes of this definition, the phrase "becomes liable to pay" shall mean the existence of a judgment which the Company does not intend to appeal, or a release has been obtained by
the Company, or the Company has accepted a proof of loss. 

        The
phrase "claim-specific declaratory judgment expenses," as used in this Contract will mean all expenses incurred by the Company in connection with declaratory judgment actions brought
to determine the Company's defense and/or indemnification obligations that are allocable to specific Policies and claims subject to this Contract. Declaratory judgment expenses will be deemed to have
been incurred by the Company on the date of the original loss (if any) giving rise to the declaratory judgment action. 

        Nothing
in this clause shall be construed to mean that losses are not recoverable hereunder until the Company's Ultimate Net Loss has been ascertained. 

        C.    The
term "Policy" as used in this Contract shall mean any binder, policy or contract of insurance issued, accepted or held covered provisionally or otherwise, by or on
behalf of the Company. 

ARTICLE 10  

NET RETAINED LINES  

        This Contract applies only to that portion of any insurance which the Company retains net for its own account and in calculating the amount of any loss hereunder
and also in computing the amount or amounts excess of which this Contract attaches, only loss or losses in respect of that portion of any insurance which the Company retains net for its own account
shall be included. 

        The
amount of the Reinsurer's liability hereunder in respect of any loss or losses shall not be increased by reason of the inability of the Company to collect from any other reinsurers,
whether specific or general, any amounts which may have become due from them whether such inability arises from the insolvency of such other Reinsurers or otherwise. 

ARTICLE 11  

LIABILITY OF REINSURER  

        The liability of the Reinsurer shall follow that of the Company in every case and shall be subject in all respects to all the general and special stipulations,
clauses, waivers and modifications of the Company's Policy or Policies and any endorsements thereon. 

        The
Company shall be the sole judge as to what shall constitute a claim or loss covered under the Company's original Policy and as to the Company's liability thereunder and as to the
amount or amounts which it shall be proper for the Company to pay thereunder; and the Reinsurer shall be bound by the judgment of the Company as to the liability and obligation of the Company under
its original Policies. 

        Nothing
herein shall in any manner create any obligations or establish any rights against the Reinsurer in favor of any third parties or any persons not parties to this Contract. 

8

   ARTICLE 12  

CURRENCY  

        The currency to be used for all purposes of this Contract shall be United States of America currency. 

ARTICLE 13  

ILLEGALITY  

        If any law or regulation of the Federal or State or Local Government of any jurisdiction in which the Company is doing business shall render illegal the
arrangements made in this Contract, the Contract can be terminated immediately, insofar as it applies to such jurisdiction, by the Company giving notice to the Reinsurer to such effect. 

ARTICLE 14  

LOSS RESERVE FUNDING  

        This Article is only applicable to those Reinsurers who cannot qualify for credit by the State having jurisdiction over the Company's loss reserves. 

        As
regards Policies or bonds issued by the Company coming within the scope of this Contract, the Company agrees that when it shall file with the insurance department or set up on its
books reserves for losses covered hereunder which it shall be required to set up by law it will forward to the Reinsurer a statement showing the proportion of such loss reserves which is applicable to
them. 

        The
Reinsurer hereby agrees that it will apply for and secure delivery to the Company a clean irrevocable and unconditional Letter of Credit issued by a bank chosen by the Reinsurer and
acceptable to the appropriate insurance authorities, in an amount equal to the Reinsurer's proportion of the loss reserves in respect of known outstanding losses that have been reported to the
Reinsurer, allocated loss expenses relating thereto and Incurred But Not Reported loss and loss expense as shown in the statement prepared by the Company. 

        The
Letter of Credit shall be "Evergreen" and shall be issued for a period of not less than one year, and shall be automatically extended for one year from its date of expiration or any
future expiration date unless 30 days prior to any expiration date, the bank shall notify the Company by certified or registered mail that it elects not to consider the Letter of Credit
extended for any additional period. 

        The
bank chosen for the issuance of the Letter of Credit shall have no responsibility whatsoever in connection with the propriety of withdrawals made by the Company or the disposition of
funds withdrawn, except to ensure that withdrawals are made only upon the order of properly authorized representatives of the Company. 

        At
annual intervals, or more frequently as agreed but never more frequently than semiannually, the Company shall prepare a specific statement, for the sole purpose of amending the Letter
of Credit, of the Reinsurer's share of known and reported outstanding losses and allocated expenses relating thereto. If the statement shows that the Reinsurer's share of such losses and allocated
loss expenses, and Incurred But Not Reported loss and loss expense, exceeds the balance of credit as of the statement date, the Reinsurer shall, within 30 days after receipt of notice of such
excess, secure delivery to the Company of an amendment of the Letter of Credit increasing the amount of credit by the amount of such difference. If, however, the statement shows that the Reinsurer's
share of known and reported outstanding losses plus allocated loss expenses, and Incurred But Not Reported loss and loss expense, relating thereto is less than the balance of credit as of the
statement date, the Company shall, within 

9

 

30 days
after receipt of written request from the Reinsurer, release such excess credit by agreeing to secure an amendment to the Letter of Credit reducing the amount of credit available by the
amount of such excess credit. 

ARTICLE 15  

COMPLIANCE WITH CALIFORNIA SB 2093  

        Any Subscribing Reinsurer that has gained admission to transact Workers Compensation reinsurance business in the State of California, or that is reinsuring the
injury, disablement, or death portions of Policies of Workers Compensation insurance in the State of California under the class of disability insurance, shall comply with all applicable provisions of
California Insurance Code §§11690-11703, revised. In the event of a delinquency proceeding, receivership or insolvency of the Company, the Insurance Commissioner of
the State of California (the "Commissioner") shall have the right to draw on any sums from the Subscribing Reinsurer's deposit that are necessary for the Commissioner to pay those reinsured claims and
obligations, or to ensure their payment by the California Insurance Guarantee Association, deemed by the Commissioner due under this Contract, upon failure of the Subscribing Reinsurer for any reason
to make payments under this Contract. The Commissioner shall give 30 days' notice prior to drawing upon these funds of an intent to do so. Notwithstanding the Commissioner's right to draw on
these funds, the Subscribing Reinsurer shall otherwise retain its right to determine the validity of those claims and obligations and to contest their payment under this Contract. Prior to a
Subscribing Reinsurer's deposit being drawn upon, in whole or in part, the Insurance Department of the State of California (the "Department") shall provide the Subscribing Reinsurer with an
explanation of procedures that the Subscribing Reinsurer may use to explain to the Department why the use of the Subscribing Reinsurer's deposit may not be appropriate under this Contract. 

ARTICLE 16  

TAXES  

        A.    In
consideration of the terms under which this Contract is issued, the Company undertakes not to claim any deduction of the premium hereon when making Canadian tax
returns or when making tax returns, other than Income or Profits Tax returns, to any state or territory of the United States of America or to the District of Columbia. 

        B.    1.    The
Reinsurer has agreed to allow for the purpose of paying the Federal Excise Tax, 1% of the premium payable hereon to the extent such premium is subject
to Federal Excise Tax. 

        2.     In
the event of any return of premium becoming due hereunder, the Reinsurer shall deduct 1% from the amount of the return, and the Company or its agent should take steps
to recover the Tax from the U.S. Government. 

ARTICLE 17  

NOTICE OF LOSS AND LOSS SETTLEMENTS  

        The Company will advise the Reinsurer promptly of all claims which in the opinion of the Company may involve the Reinsurer and of all subsequent developments on
these claims which may materially affect the position of the Reinsurer. 

        The
Reinsurer agrees to abide by the loss settlements of the Company, provided that retroactive extension of Policy terms or coverages made voluntarily by the Company and not in response
to court decisions (whether such court decision is against the Company or other companies affording the same or similar coverages) will not be covered under this Contract. 

10

 

        When
so requested the Company will afford the Reinsurer an opportunity to be associated with the Company, at the expense of the Reinsurer, in the defense of any claim or suit or
proceeding involving this Contract and the Company will cooperate in every respect in the defense of such claim, suit or proceeding. 

        The
Reinsurer will pay its share of loss settlements immediately upon receipt of proof of loss from the Company. 

ARTICLE 18  

EXCESS RECOVERY—TERRORISM  

        A.    A
pro rata share of the amount, if any, by which financial assistance paid to the Insurer under the Terrorism Risk Insurance Act of 2002 ("TRIA") for Acts of Terrorism
occurring during any one Program Year, combined with the Insurer's total private-sector reinsurance recoveries for such Acts of Terrorism, exceeds the amount of Insured Losses paid by the Insurer for
such Acts of Terrorism, shall be reimbursed by the Company to the Reinsurer. Such pro rata share shall be calculated by dividing: 

        1.     the
Reinsurer's payment under this Contract of Insured Losses for the Program Year; by 

        2.     the
Insurer's total private-sector reinsurance recoveries arising from all Act(s) of Terrorism covered under TRIA during the Program Year. 

        B.    Payment
shall be made as promptly as possible after the Company's receipt of any recovery in excess of its Insured Losses. The Company shall provide the Reinsurer with
all the necessary data respecting the transactions covered under this Article. 

        C.    Such
payment to the Reinsurer shall apply unless disallowed by the U.S. Department of the Treasury. 

        D.    "Insurer"
means the insurance group of which the Company is a subsidiary or affiliate for purposes of TRIA. "Act of Terrorism," "Insured Losses" and "Program Year" shall
follow the definitions provided in TRIA. 

ARTICLE 19  

OFFSET  

        Each party hereto shall have, and may exercise at any time and from time to time, the right to offset any balance or balances under this Contract, whether on
account of premiums or on account of losses or otherwise, due from each party to the other (or, if more than one, any other) party hereto. However, that in the event of the insolvency of a party
hereto, offsets shall only be allowed in accordance with the provisions of Section 7427 of the insurance Law of the State of New York and the insurance Law of the State of California. 

ARTICLE 20  

COMMUTATION  

        A.    Either
the Reinsurer or the Company may request commutation of that portion of any excess loss hereunder represented by any outstanding claim or claims after
84 months from the date of an occurrence. If both parties desire to commute a claim or claims, then within 60 days after such agreement, the Company shall submit a statement of valuation
of the outstanding claim or claims showing the elements considered reasonable to establish the ultimate net loss and the Reinsurer shall pay the amount requested. 

11

 

        B.    If
agreement, as outlined in the paragraph above, cannot be reached, the effort can be abandoned or alternately the Company and the Reinsurer may mutually appoint an
actuary or appraiser to investigate, determine and capitalize such claim or claims. If both parties then agree, the Reinsurer shall pay its proportion of the amount so determined to be the capitalized
value of such claim or claims. 

        C.    If
the parties, as outlined in the paragraphs above, fail to agree, they may abandon the effort or they may agree to settle any difference using a panel of three
actuaries, one to be chosen by each party and the third by the two so chosen. If either party refuses or neglects to appoint an actuary within 30 days, the other party may appoint two
actuaries. If the two actuaries fail to agree on the selection of a third actuary within 30 days of their appointment, each of them shall name two, of whom the other shall decline one and the
decision shall be made by drawing lots. All the actuaries shall be regularly engaged in the valuation of Workers' Compensation claims and shall be Fellows of the Casualty Actuarial Society or of the
American Academy of Actuaries. None of the actuaries shall be under the control of either party to this Contract. 

        D.    Each
party shall submit its case to its actuary within 30 days of the appointment of the third actuary. The decision in writing of any two actuaries, when filed
with the parties hereto, shall be final and binding on both parties. The expense of the actuaries and of the commutation shall be equally divided between the two parties. Said commutation shall take
place in Woodland Hills, California, unless some other place is mutually agreed upon by the Company and the Reinsurer. 

        E.    Payment
by the Reinsurer of their proportion of the amount or amounts, so mutually agreed, shall constitute a complete and final release of the Reinsurer of all claims,
both reported and unreported. 

ARTICLE 21  

EXCESS OF POLICY LIMITS  

        In the event the Ultimate Net Loss includes an amount in excess of the Company's Policy limit, when loss in excess of the limit has been incurred because of, but
not limited to its failure to settle within the Policy limit or by reason of alleged or actual negligence, fraud or bad faith in rejecting an offer of settlement or in the preparation of the defense
or in the trial of any action against its insured or in the preparation or prosecution of an appeal consequent upon such action, such amount, as provided for in the definition of Ultimate Net Loss, in
excess of the Company's Policy limit shall be added to the amount of the Company's Policy limit, and the sum thereof shall he covered hereunder, subject to the Reinsurer's limit of liability appearing
in the LIMIT AND RETENTION ARTICLE of this Contract. 

        However,
this Article shall not apply where the loss has been incurred due to the fraud of a member of the Board of Directors or a corporate officer 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. 

        For
the purpose of this Article, the word "loss" shall mean any amounts for which the Company would have been contractually liable to pay had it not been for the limit of the original
Policy. 

        If
any provision of this Article 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 Article or the enforceability of such provision in any other jurisdiction. 

12

   ARTICLE 22  

EXTRA CONTRACTUAL OBLIGATIONS  

        This Contract shall protect the Company, subject to the Reinsurer's limit of liability appearing in the LIMIT AND RETENTION ARTICLE of this Contract, where the
Loss Occurrence includes any Extra Contractual Obligations as provided for in the definition of Ultimate Net Loss. "Extra Contractual Obligations" are defined as those liabilities not covered under
any other provision of this Contract and which arise from handling of any claim on business covered hereunder, such liabilities arising because of, but not limited to, the following: failure by the
Company to settle within the Policy limit, or by reason of alleged or actual negligence, fraud or bad faith in rejecting an offer of settlement or in the preparation of the defense or in the trial of
any action against its insured or in the preparation or prosecution of an appeal consequent upon such action. 

        The
date on which any Extra Contractual Obligation is incurred by the Company shall be deemed, in all circumstances, to be the date of the original Loss Occurrence. 

        However,
this Article shall not apply where the Loss Occurrence has been incurred due to the fraud of a member of the Board of Directors or a corporate officer 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. 

        For
the purposes of Extra Contractual Obligations coverage, there shall also be recovery hereunder as respects all liability of the Company arising from the handling of any claim under
self-insurance of Workers' Compensation and/or Employer's Liability or under Policies issued to itself or any of the Company's subsidiary and/or affiliated companies. 

        If
any provision of this Article 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 Article or the enforceability of such provision in any other jurisdiction. 

ARTICLE 23  

DELAY, OMISSION OR ERROR  

        Any inadvertent delay, omission or error shall not be held to relieve either party hereto from any liability which would attach to it hereunder if such delay,
omission or error had not been made, providing such delay, omission or error is rectified upon discovery. 

        In
the case of exposures not within the terms and conditions hereof, the obligation of the Reinsurer shall be limited to return of any premium paid hereon for such exposure. 

        Nevertheless,
this Article shall not apply with respect to loss reports rendered to the Reinsurer beyond the period required to afford coverage in accordance with the TERM ARTICLE. 

ARTICLE 24  

ACCESS TO RECORDS  

        Provided that the Reinsurer shall give prior written notice of their desire to obtain information, the Company shall place at the disposal of the Reinsurer, and
the Reinsurer, or its authorized representative, shall have the right to inspect, at all reasonable times during the currency of this Contract and thereafter, the books, records and papers of the
Company pertaining to the reinsurance provided hereunder. 

13

 

ARTICLE 25  

ARBITRATION  

        As a precedent to any right of action hereunder, if any dispute shall arise between the Company and the Reinsurer with reference to the interpretation of this
Contract including its formation and validity or their rights with respect to any transaction involved, whether such dispute arises before or after termination of this Contract, such dispute, upon the
written request of either party, shall be submitted to three arbitrators, one to be chosen by each party, and the third by the two so chosen. If either party refuses or neglects to appoint an
arbitrator within 30 days after the receipt of written notice from the other party requesting it to do so, the requesting party may appoint two arbitrators. If the two arbitrators fail to agree
in the selection of a third arbitrator within 30 days of their appointment, each of them shall name two, of whom the other shall decline one and the decision shall be made by drawing lots. All
arbitrators shall be executive officers of insurance or reinsurance companies or Underwriters at Lloyd's, London not under the control of either party to this Contract. 

        The
arbitrators shall interpret this Contract as an honorable engagement and not as merely a legal obligation; they are relieved of all judicial formalities and may abstain from
following the strict rules of law, and they shall make their award with a view to effecting the general purpose of this Contract in a reasonable manner rather than in accordance with a literal
interpretation of the language. Each party shall submit its case to its arbitrator within 30 days of the appointment of the third arbitrator. 

        The
decision in writing of any two arbitrators, when filed with the parties hereto, shall be final and binding on both parties. Judgment may be entered upon the final decision of the
arbitrators in any
court having jurisdiction. Each party shall bear the expense of its own arbitrator and shall jointly and equally bear with the other party the expense of the third arbitrator and of the arbitration.
Said arbitration shall take place in the city in which the Company's head office is located unless some other place is mutually agreed upon by the Company and the Reinsurer. 

ARTICLE 26  

SERVICE OF SUIT  

        This Article applies 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. 

        It
is agreed that in the event of the failure of the Reinsurer hereon to pay any amount claimed to be due hereunder, the Reinsurer hereon, 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. 

        It
is further agreed that service of process in such suit may be made upon Messrs. Mendes & Mount, 725 South Figueroa Street, Los Angeles, California 90017 or in the event
the suit is instituted in New York State, Messrs. Mendes & Mount, 750 Seventh Avenue, New York, New York 10019-6829 and that in any
suit instituted against the Reinsurer upon this Contract, the Reinsurer will abide by the final decision of such court or of any appellate court in the event of an appeal. 

        The
above-named are authorized and directed to accept service of process on behalf of the Reinsurer in any such suit and/or upon the request of the Company to give a written undertaking
to the Company that they will enter a general appearance upon the Reinsurer's behalf in the event such a suit shall be instituted. 

14

 

        Further,
pursuant to any statute of any state, territory or district of the United States which makes provision therefore, the Reinsurer hereon hereby designates 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, and hereby designates the above-named as the
person to whom the said officer is authorized to mail such process or a true copy thereof. 

ARTICLE 27  

INSOLVENCY  

        In the event of the insolvency of any company or companies included in the designation of "Company," this Article will apply only to the insolvent company or
companies. 

        In
the event of the insolvency and the appointment of a conservator, liquidator or statutory successor of the Company, reinsurance under this Contract shall be payable to such
conservator, liquidator or statutory successor immediately upon demand, with reasonable provision for verification, on the basis of claims allowed against the insolvent Company by any court of
competent jurisdiction or by any conservator, liquidator or statutory successor of the Company having authority to allow such claims, without diminution because of such insolvency or because such
conservator, liquidator or statutory successor has failed to pay all or portion of any claims. Such payments by the Reinsurer shall be made directly to the Company or its conservator, liquidator or
statutory successor except as provided by Section 4118(a) of the New York Insurance Law or except when the Contract specifically provides another payee of such reinsurance in the event of the
insolvency of the Company and when 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. 

        It
is agreed, however, that the conservator, liquidator or statutory successor of the insolvent Company shall give written notice to the Reinsurer of the pendency of a claim against the
insolvent Company on the Policy or Policies reinsured within a reasonable time after such claim is filed in the insolvency proceeding and that during the pendency of such claim, the Reinsurer may
investigate such claim and interpose, at its own expense, in the proceeding when such claim is to be adjudicated, any defense or defenses which it may deem available to the Company or its conservator
or liquidator or statutory successor. The expense thus incurred by the Reinsurer shall be chargeable, subject to court approval, against the insolvent Company as part of the expense of liquidation to
the extent of a proportionate share of the benefit which may accrue to the Company solely as a result of the defense undertaken by the Reinsurer. 

        When
two or more 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 insolvent Company. 

ARTICLE 28  

INTERMEDIARY  

        Guy Carpenter & Company, Inc. is hereby recognized as the Intermediary negotiating this Contract for all business hereunder. All communications,
including notices, premiums, return premiums, commissions, taxes, losses, loss adjustment expenses, salvages and loss settlements relating thereto shall be transmitted to the Reinsurer or the Company
through Guy Carpenter & Company, Inc., One Convention Place, 701 Pike Street, Suite 2000, Seattle, Washington 98101. Payments by the Company to the Intermediary shall be deemed to
constitute payment to the Reinsurer. Payments by the Reinsurer to the Intermediary shall be deemed only to constitute payment to the Company to the extent that such payments are actually received by
the Company. 

15

 

        IN WITNESS WHEREOF, the Company has caused this Contract to be executed by its duly authorized representative(s) this 21st day of March, in the year
of 2005.

/s/ John J. Tickner  

ZENITH INSURANCE COMPANY

ZNAT INSURANCE COMPANY

ZENITH STAR INSURANCE COMPANY  

 WORKERS' COMPENSATION CONSOLIDATED CATASTROPHE

AND TERRORISM EXCESS OF LOSS REINSURANCE CONTRACT  

16

   SCHEDULE OF REINSURERS  

ZENITH INSURANCE COMPANY  

 WORKERS' COMPENSATION CONSOLIDATED CATASTROPHE

AND TERRORISM EXCESS OF LOSS REINSURANCE CONTRACT  

CONTRACT
EFFECTIVE: January 1, 2005 

	Reinsurer
 
	 	Reference #
	 	FEIN #
	 	NAIC #
	 	Signed %
	 
	Excess of Loss—Third Layer	 	 	 	 	 	 	 	 	 
	Willis Corroon Group Services Ltd.	 	 	 	 	 	 	 	 	 
	 	Lloyd's Underwriter Syndicate No. 2987 BRT	 	 	 	 	 	AA-1128987	 	10.714	%
	 	Lloyd's Underwriter Syndicate No. 2000 HAR	 	 	 	 	 	AA-1128000	 	7.143	%
	 	Lloyd's Underwriter Syndicate No. 4472 LIB	 	 	 	 	 	AA-1126006	 	3.571	%
	 	Lloyd's Underwriter Syndicate No. 1084 CSL	 	 	 	 	 	AA-1127084	 	2.143	%
	 	Lloyd's Underwriter Syndicate No. 0435 FDY	 	 	 	 	 	AA-1126435	 	1.429	%
	 	Lloyd's Underwriter Syndicate No. 0727 SAM	 	 	 	 	 	AA-1126727	 	5.357	%
	 	Aspen Insurance UK Limited PSAC W4006	 	 	 	 	 	AA-1120337	 	7.143	%
	Arch Reinsurance Company	 	 	 	06-1430254	 	10348	 	10.00	%
	Endurance Specialty Insurance Limited	 	 	 	 	 	AA-3194130	 	12.50	%
	Hannover Rüversicherung-AG	 	 	 	 	 	AA-1340125	 	18.00	%
	Odyssey America Reinsurance Corporation	 	 	 	47-0698507	 	23680	 	7.50	%
	XL Reinsurance America Incorporated	 	 	 	13-1290712	 	20583	 	14.50	%
	 	 	 	 	 	 	 	 	
	 
	TOTAL:	 	 	 	 	 	 	 	100.00	%
	Excess of Loss—Fourth Layer	 	 	 	 	 	 	 	 	 
	Willis Corroon Group Services Ltd.	 	 	 	 	 	 	 	 	 
	 	Lloyd's Underwriter Syndicate No. 2987 BRT	 	 	 	 	 	AA-1128987	 	4.375	%
	 	Lloyd's Underwriter Syndicate No. 2000 HAR	 	 	 	 	 	AA-1128000	 	2.188	%
	 	Lloyd's Underwriter Syndicate No. 1084 CSL	 	 	 	 	 	AA-1127084	 	1.312	%
	 	Lloyd's Underwriter Syndicate No. 0435 FDY	 	 	 	 	 	AA-1126435	 	1.75	%
	 	Aspen Insurance UK Limited PSAC W4006	 	 	 	 	 	AA-1120337	 	4,375	%
	Ace Tempest Re USA, LLC (US) o/b/o Ace Property & Casualty Insurance Company	 	 	 	06-0237820	 	20699	 	8.50	%
	Allied World Assurance Company Limited	 	 	 	 	 	AA-3194128	 	8.00	%
	Arch Reinsurance Company	 	 	 	06-1430254	 	10348	 	8.50	%
	AXIS Specialty Limited	 	 	 	98-0364977	 	AA-3194139	 	9.00	%
	Endurance Specialty Insurance Limited	 	 	 	 	 	AA-3194130	 	7.00	%
	Hannover Rückversicherung-AG	 	 	 	 	 	AA-1340125	 	12.00	%
	Swiss Re Underwriters Agency, Inc, (US) o/b/o Swiss Reinsurance America Corporation	 	 	 	13-1675535	 	25364	 	12.00	%
	Liberty Mutual Insurance Company	 	 	 	04-1543470	 	23043	 	4.00	%
	Odyssey America Reinsurance Corporation	 	 	 	47-0698507	 	23680	 	4.50	%
	Transatlantic Reinsurance Company	 	 	 	13-5616275	 	19453	 	10.00	%
	XL Reinsurance America Incorporated	 	 	 	13-1290712	 	20583	 	2.50	%
	 	 	 	 	 	 	 	 	
	 
	TOTAL:	 	 	 	 	 	 	 	100.00	%

1

 

	Reinsurer
 
	 	Reference #
	 	FEIN #
	 	NAIC #
	 	Signed %
	 
	Excess of Loss—Fifth Layer	 	 	 	 	 	 	 	 	 
	Willis Corroon Group Services Ltd.	 	 	 	 	 	 	 	 	 
	 	Lloyd's Underwriter Syndicate No. 2987 BRT	 	 	 	 	 	AA-1128987	 	3.805	%
	 	Lloyd's Underwriter Syndicate No. 2000 HAR	 	 	 	 	 	AA-1128000	 	3.171	%
	 	Lloyd's Underwriter Syndicate No. 1084 CSL	 	 	 	 	 	AA-1127084	 	1.902	%
	 	Lloyd's Underwriter Syndicate No. 0435 FDY	 	 	 	 	 	AA-1126435	 	2.537	%
	 	Lloyd's Underwriter Syndicate No. 0727 SAM	 	 	 	 	 	AA-1126727	 	1.268	%
	 	Lloyd's Underwriter Syndicate No. 0780 ADV	 	 	 	 	 	AA-1126780	 	0.634	%
	 	Lloyd's Underwriter Syndicate No. 4472 LIB	 	 	 	 	 	AA-1126006	 	6.341	%
	 	Aspen Insurance UK Limited PSAC W4006	 	 	 	 	 	AA-1120337	 	6.342	%
	Ace Tempest Reinsurance Limited	 	 	 	 	 	AA-3190770	 	10.00	%
	Allied World Assurance Company Limited	 	 	 	 	 	AA-3194128	 	5.00	%
	Arch Reinsurance Company	 	 	 	06-1430254	 	10348	 	9.00	%
	AXIS Specialty Limited	 	 	 	98-0364977	 	AA-3194139	 	9.00	%
	Endurance Specialty Insurance Limited	 	 	 	 	 	AA-3194130	 	7.00	%
	Hannover Rückversicherung-AG	 	 	 	 	 	AA-1340125	 	9.00	%
	Liberty Mutual Insurance Company	 	 	 	04-1543470	 	23043	 	4.50	%
	Odyssey America Reinsurance Corporation	 	 	 	47-0698507	 	23680	 	5.00	%
	Swiss Re Underwriters Agency, Inc. (US) o/b/o Swiss Reinsurance America Corporation	 	 	 	13-1675535	 	25364	 	10.00	%
	Transatlantic Reinsurance Company	 	 	 	13-5616275	 	19453	 	4.00	%
	XL Reinsurance America Incorporated	 	 	 	13-1290712	 	20583	 	1.50	%
	 	 	 	 	 	 	 	 	
	 
	TOTAL:	 	 	 	 	 	 	 	100.00	%
	Excess of Loss—Sixth Layer	 	 	 	 	 	 	 	 	 
	Willis Corroon Group Services Ltd.	 	 	 	 	 	 	 	 	 
	 	Lloyd's Underwriter Syndicate No. 2987 BRT	 	 	 	 	 	AA-1128987	 	3.39	%
	 	Lloyd's Underwriter Syndicate No. 2000 HAR	 	 	 	 	 	AA-1128000	 	2.712	%
	 	Lloyd's Underwriter Syndicate No. 1084 CSL	 	 	 	 	 	AA-1127084	 	0.50	%
	 	Lloyd's Underwriter Syndicate No. 0727 SAM	 	 	 	 	 	AA-1126727	 	0.50	%
	 	Aspen Insurance UK Limited PSAC W4006	 	 	 	 	 	AA-1120337	 	7.148	%
	Ace Tempest Re USA, LLC (US) o/b/o Ace Property & Casualty Insurance Company	 	 	 	06-0237820	 	20699	 	2.50	%
	Ace Tempest Reinsurance Limited	 	 	 	 	 	AA-3190770	 	13.00	%
	Arch Reinsurance Company	 	 	 	06-1430254	 	10348	 	3.00	%
	AXIS Specialty Limited	 	 	 	98-0364977	 	AA-3194139	 	12.50	%
	Endurance Specialty Insurance Limited	 	 	 	 	 	AA-3194130	 	12.50	%
	Hannover Re (Bermuda) Limited	 	 	 	 	 	AA-3190060	 	9.50	%
	IDA Re (US) o/b/o Catlin Insurance Company Ltd	 	 	 	 	 	AA-3194161	 	17.75	%
	Swiss Re Underwriters Agency, Inc. (US) o/b/o Swiss Reinsurance America Corporation	 	 	 	13-1675535	 	25364	 	15.00	%
	 	 	 	 	 	 	 	 	
	 
	TOTAL:	 	 	 	 	 	 	 	100.00	%

2

QuickLinks

WORKERS' COMPENSATION CONSOLIDATED CATASTROPHE AND TERRORISM EXCESS OF LOSS REINSURANCE CONTRACT issued to ZENITH INSURANCE COMPANY ZNAT INSURANCE COMPANY Woodland Hills, California ZENITH STAR INSURANCE COMPANY
Austin, Texas

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]