Document:

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                                                                   EXHIBIT 10.42

                   INSURANCE ADMINISTRATION SERVICES AGREEMENT

         THIS INSURANCE ADMINISTRATION SERVICES AGREEMENT ("Agreement") is
effective as of the ____ day of _________, ____ ("Effective Date"), by and
between INSURANCE MANAGEMENT SOLUTIONS, INC. ("IMS"), a corporation organized
and existing under the laws of the State of Florida with its principal place of
business located at 360 Central Avenue, St. Petersburg, Florida 33701, and
MIDDLESEX MUTUAL ASSURANCE COMPANY (herein referred to as "Customer") having
their principal place of business at 213 Court Street, Middletown, CT
06457-0891.

         WHEREAS, Customer wishes to engage the services of IMS to administer
certain of the Customer's obligations for the lines of business ("Authorized
Lines of Business") in the state(s) ("Authorized States") set forth in SCHEDULE
A;

         WHEREAS, IMS wishes to provide such insurance administration services
as set forth herein.

         NOW THEREFORE, IN CONSIDERATION OF the mutual covenants and agreements
hereinafter set forth, the parties hereto do covenant and agree as follows:

ARTICLE I.        DEFINITIONS

Unless the context clearly requires otherwise, the following terms when used in
this Agreement shall have the meanings set forth below:

A.       "Affiliate" is any company which controls, is controlled by, or under
         common control with, a party, and "control" is defined as owning 50% or
         more of such entity.

B.       "Authorized Lines of Business" means the lines of business expressly
         set forth in SCHEDULE A of this Agreement.

C.       "Authorized States" means the states expressly set forth in SCHEDULE A
         of this Agreement.

D.       "Business Day" means any day other than a Saturday, Sunday or other day
         which is a bank holiday for Florida State banks or an IMS paid holiday
         (New Year's Day, Memorial Day, Independence Day, Thanksgiving Day, day
         after Thanksgiving, Christmas Eve (after 12 P.M. Eastern Standard Time)
         and Christmas Day).

E.       "Change of Control" means (a) a sale, transfer or pledge, or the
         issuance to a new shareholder, of fifty (50%) percent or more of the
         voting stock of a party hereto to any third party that is not an
         Affiliate of such party; or (b) a sale, transfer or pledge of a
         substantial portion of the material assets of a party, or any merger or
         consolidation of a party with another entity or entities.

F.       "Insurance Administration Services" means the services set forth in
         this Agreement and EXHIBIT I hereto in the Authorized States in
         accordance with the terms of the Agreement, and all applicable laws and
         regulations.

G.       "Insurance Program" means the Customer's insurance products within the
         Authorized Line(s) of Business to be offered within the Authorized
         States.

H.       "Technical Information" means and shall include (without limitation)
         computer programs, databases, designs, algorithms, processes,
         structures, data formats, business methods, know how, and research and
         development information.

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ARTICLE II.       TERM

The term of the Agreement shall commence on the Effective Date and shall have a
minimum operating term ("Minimum Operating Term") of Thirty-six (36) full
calendar months following the Effective Date. However, the term of this
Agreement shall automatically extend for an additional operating term ("Extended
Operating Term") of twelve (12) calendar months at the end of the Minimum
Operating Term, or at the end of any Extended Operating Term, unless terminated
earlier pursuant to the termination provisions within Article VIII.

ARTICLE III.      RESPONSIBILITIES OF IMS

A.       IMS shall dedicate the human, equipment and computer resources
         commercially reasonably required to provide Customer with the Insurance
         Administration Services, during the term of this Agreement, for the
         Insurance Program within Authorized States specified in SCHEDULE A.

B.       IMS shall designate an employee ("Account Manager") of sufficient
         status and authority to act as liaison with Customer to facilitate IMS'
         performance of the Insurance Administration Services under this
         Agreement. The Account Manager shall provide written and/or oral
         communication of the status of administration of the Insurance
         Administration Services as agreed to by and between Account Manager and
         Customer.

C.       IMS shall, based on accepted industry standards and in accordance with
         generally accepted insurance and accounting practices as designated by
         the applicable regulatory bodies and the National Flood Insurance
         Program ("NFIP"), maintain complete and orderly records and policy
         and/or claims files as may be required as a result of IMS performing
         the Insurance Administration Services on behalf of Customer. These
         files shall be retained by IMS, in a format or media defined by IMS
         which shall be in compliance with applicable laws and regulations, for
         a minimum of four (4) years or the period specified by the applicable
         statutes regulating the preservation of records, unless the Customer
         requests that its records be returned to it at its expense at the
         expiration of the minimum four (4) year period; however, that IMS shall
         be entitled to retain copies thereof.

ARTICLE IV.       RESPONSIBILITIES OF CUSTOMER

A.       During the term of this Agreement, Customer shall provide to IMS, in a
         timely manner, any and all data, information and other items reasonably
         required to enable IMS to perform the Insurance Administration Services
         specified in EXHIBIT I of this Agreement. Customer represents and
         warrants to IMS that it owns and possesses all property rights to its
         corporate and subsidiary logos and hereby grants and warrants to IMS a
         limited, non-transferable, non-assignable, license to use Customer's
         corporate and subsidiary logos (and any other copyrighted or
         trademarked property of Customer that may be provided to IMS under this
         Agreement) while performing the Insurance Administration Services.
         Customer acknowledges and agrees that delays in delivery of required
         documentation, data and/or information by Customer will result in a
         similar delay in fulfilling Insurance Administration Services, and that
         such a delay in performing the Insurance Administration Services shall
         not be deemed a breach of the Agreement.

B.       CUSTOMER ACKNOWLEDGES AND AGREES THAT IMS ASSUMES NO INSURANCE RISK FOR
         THE BUSINESS PROCESSED UNDER THIS AGREEMENT.

C.       Customer shall designate manager level employee(s) of sufficient status
         and binding decision making authority to act as liaisons with IMS and
         to facilitate Customer's role as IMS performs the Insurance
         Administration Services specified in EXHIBIT I of this Agreement.

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ARTICLE V.        CUSTOMER ACCESS TO RECORDS / CONFIDENTIAL INFORMATION

A.       At Customer's expense, Customer will be permitted reasonable access (as
         set forth herein) to all records and information maintained by IMS on
         behalf of Customer (excluding, specifically, proprietary Technical
         Information) reasonably necessary to: (i) audit the completeness and
         accuracy of the Insurance Administration Services provided under this
         Agreement and reports produced for Customer pursuant to this Agreement;
         (ii) verify the accuracy and validity of all billings and charges to
         Customer under this Agreement; and (iii) verify IMS' overall compliance
         with the material terms of this Agreement and applicable laws and
         regulations.

         Access to IMS' records, for the foregoing purposes, will be provided
         during normal business hours upon ten (10) Business Days prior written
         notice to IMS by Customer for so long as IMS is required to maintain
         such records under this Agreement; except in the case of regulatory
         inquiry, in which case access will be granted on any Business Day with
         twenty four (24) hours of prior written notice to IMS.

         At Customer's expense, Customer will be permitted to copy those IMS
         records subject to audit in accordance with this Article. Upon
         reasonable written request by Customer, and at Customer's expense, IMS
         will promptly mail or fax to Customer supporting documentation
         concerning any specific transaction processed by IMS under the terms of
         this Agreement.

         IMS will provide reasonably adequate workspace for Customer to conduct
         audits in accordance with this Article. Further, Customer or its
         representatives shall take precautions, when conducting audits under
         this Article, not to disrupt IMS' ongoing business activities.

B.       The recipient ("Recipient") of confidential data and/or information
         pursuant to this Agreement shall maintain the confidentiality of all
         data and/or information which is the property of the other party
         ("Disclosing Party"), whether originally supplied by the Disclosing
         Party, or whether generated by the Disclosing Party in the course of
         performing or facilitating the Insurance Administration Services under
         this Agreement and which is directly accessible to the Recipient or is
         in the possession of Recipient in the implementation, facilitation
         and/or performance of the Insurance Administration Services. During any
         term of this Agreement, Recipient may acquire, know, or have within its
         possession, information (including, but not limited to, Technical
         Information) and/or data of the Disclosing Party concerning commercial
         and trade affairs, rating and underwriting rules and guidelines, the
         identity of clients, the identity of insureds and beneficiaries,
         claims, benefits, rates and Agents, financial information, the
         Proprietary System (as defined at Article VII (A) herein), the Third
         Party Proprietary System (as defined in Article VII (B) herein) and
         business practices of the Disclosing Party ("Confidential
         Information"). Confidential Information which is provided in tangible
         form must be clearly marked "Confidential", "Proprietary" or the
         substantial equivalent thereof, or if orally disclosed must be clearly
         identified as "Confidential" or "Proprietary" at the time of the
         disclosure (except for IMS' Technical Information, the identity of
         Customer's clients, the identity of Customer's insureds and
         beneficiaries, claims, benefits, and Agents, which will be deemed
         "Confidential Information" under this Agreement, regardless of whether
         marked as such). Except as required by law, Recipient shall keep
         Disclosing Party's Confidential Information confidential and shall only
         use the Confidential Information in performing or facilitating the
         Insurance Administration Services under this Agreement. Recipient shall
         not disclose the Confidential Information without Disclosing Party's
         prior written permission except to Recipient's employees who require
         the information to perform or facilitate the Insurance Administration
         Services under this Agreement. Each party hereto, as a Recipient,
         warrants to the other that appropriate measures shall be taken by
         Recipient to safeguard the confidentiality of the Confidential
         Information, with a level of care at least equal to the level of care
         with which Recipient safeguards its own confidential or proprietary
         information. All employees, agents or representatives of Recipient and
         any third parties who are given access to the Confidential Information
         shall be under written obligation to Recipient to maintain such
         information in confidence.

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         IMS and Customer agree that any Recipient shall have no obligation with
         respect to any information or data which:

         a)       is already rightfully known to Recipient through means other
                  than Disclosing Party; or

         b)       is or becomes publicly known through no wrongful act of
                  Recipient; or

         c)       is rightfully obtained by Recipient from a third-party without
                  similar restriction and without breach of this Agreement; or

         d)       is independently developed by Recipient without breach of this
                  Agreement.

         Disclosing Party shall retain title to all Confidential Information
         (whether tangible or intangible) delivered thereby pursuant to this
         Agreement. Recipient shall not copy, reproduce or use any Confidential
         Information without written authorization of Disclosing Party, except
         as may be reasonably required to accomplish the Insurance
         Administration Services under this Agreement. Upon written request of
         Disclosing Party Recipient shall promptly return, or destroy with
         specific written permission of the Disclosing Party, all tangible
         copies containing Confidential Information, except those copies kept in
         the regular course of business, or that are required to be kept
         pursuant to any state or federal administrative, regulatory or
         statutory mandates. The obligations under this Paragraph (B) shall
         survive the termination of this Agreement. Notwithstanding the
         foregoing, this Article shall not prevent the disclosure of
         Confidential Information to the extent legally required by any court or
         regulatory entity having jurisdiction over the parties.

         For purposes of Article V (B), Recipient and Disclosing Party shall
         include within their meaning all respective subsidiaries, agents, or
         Affiliates of the Recipient and Disclosing Party.

ARTICLE VI.       EXPENSES AND FEES

A.       In consideration of IMS providing Insurance Administration Services
         described herein, Customer shall pay IMS, as applicable, miscellaneous
         fee ("Miscellaneous Fee"), servicing fee ("Service Fee") and claim
         administration fee ("Claim Administration Fee") for each Authorized
         Line of Business, as specified in SCHEDULE B. The performance by IMS of
         any service or function that is outside of the scope of the Insurance
         Administration Services shall require the payment by Customer of
         additional consideration (in addition to the Service Fees) as mutually
         agreed between IMS and Customer.

B.       Except for the Service Fee, which is based upon a percentage of the
         adjusted net written premium and the Claim Administration Fee, the
         Miscellaneous Fees specified in Section IV of SCHEDULE B hereto may be
         increased (up to a maximum of five percent (5%) per year from the prior
         year) effective as of each anniversary of the Effective Date by the
         percentage increase in the United States Consumer Price Index for all
         Urban Users (CPI-U) as reported by the United States Bureau of Labor
         Statistics for the most recently completed calendar year that IMS is
         performing services on behalf of the Customer. In the event that a
         vendor supplying a service or product to IMS, which service or product
         is used by IMS to provide the Insurance Administration Services to
         Customer, increases its rates charged to IMS, IMS may increase the
         Service Fees, Claim Administration Fees, and Miscellaneous Fees set
         forth in Schedule B to incorporate such increased costs and will
         provide Customer with documentation verifying the increase.

C.       Customer shall reimburse IMS for travel, living and out-of-pocket
         expenses incurred by IMS personnel in the performance of training
         relative to the Insurance Administration Services to be performed under
         this Agreement.

D.       Customer agrees to pay any and all tariffs and taxes that are now or
         may become applicable to the

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         Insurance Administration Services rendered hereunder, including, but
         not limited to, sales, use, and personal property taxes, or any other
         form of tax based on Insurance Administration Services performed,
         equipment used by IMS solely for Customer, and the communicating or
         storage of data used by IMS solely for Customer, but excluding taxes on
         the net income of IMS.

E.       Subject to the terms of this Agreement, all fees and expenses to be
         payable by Customer to IMS or any third party under this Agreement
         shall be paid within thirty (30) calendar days after Customer's receipt
         of IMS' monthly statement for all services provided to Customer under
         this Agreement. IMS will calculate the fees owed to IMS by Customer and
         will send a statement to Customer within two (2) weeks of the last day
         of the month for which fees are owed. Customer's failure to pay all
         fees and expenses when due shall be considered a material breach of
         this Agreement. Further, if Customer fails to pay any fees and expenses
         due IMS as herein provided, Customer shall pay to IMS in addition to
         all sums otherwise due, interest which shall accrue at 1.5% per month
         on such delinquency from the date the fees or expenses became past due.
         Failure or forbearance to exercise any of its rights and privileges
         hereunder shall not constitute the forfeiture or waiver of such rights
         and privileges on the part of IMS.

F.       Prior to renewal of this Agreement for any Extended Operating Term, IMS
         may modify SCHEDULE B in its discretion to reflect any increase in the
         cost of providing the Insurance Administration Services (including, but
         not limited to statutory, regulatory, or judicial changes that require
         IMS to incur additional cost or expenses in performing the Insurance
         Administration Services) or to remain competitive with the rates
         currently being charged within the industry for like services. Any
         modification of SCHEDULE B shall be proposed to Customer at least
         twelve (12) months prior to the expiration of any term of this
         Agreement.

ARTICLE VII.      LICENSE, TRADE SECRET AND PROPRIETARY RIGHTS

A.       IMS from time to time may use its own proprietary computer software
         products and account servicing methods and procedures ("Proprietary
         System"), which are identified, described or referenced in EXHIBIT I
         hereto, in the performance of the Insurance Administration Services.
         During any term of this Agreement, IMS grants a personal,
         non-transferable, non-assignable, non-exclusive license to Customer to
         use portions of the Proprietary System as necessary for IMS to perform
         the Insurance Administration Services under this Agreement. Further, no
         provision within this Agreement shall be interpreted as prohibiting IMS
         from selling or licensing its Proprietary System to any other customer
         or prospective customer of IMS.

B.       IMS, from time to time, may also use proprietary third party computer
         software products and third party account servicing methods and
         procedures ("Third Party Proprietary System"), which are identified,
         described or referenced in EXHIBIT I hereto in the performance of the
         Insurance Administration Services. No provision within this Agreement
         shall be interpreted as prohibiting IMS or the Third Party Proprietary
         System vendor from selling or licensing the Third Party Proprietary
         System, or modifications and enhancements to the Third Party
         Proprietary System, to any other customer or prospective customer of
         IMS, so long as Customer's Confidential Information is not disclosed.

C.       Other than the limited rights to use the Proprietary System and the
         Third Party Proprietary System, as provided in Article VII (A) and (B)
         above, this Agreement grants to Customer no right to possess or
         reproduce, download, reverse engineer, or obtain any other interest in,
         the Proprietary System or the Third Party Proprietary System, or their
         specifications in any tangible or intangible medium. Customer may not
         mortgage, hypothecate, sell, assign, pledge, lease, transfer, license,
         or sublicense the Proprietary System or the Third Party Proprietary
         System, nor allow any person, firm, entity or corporation to transmit,
         copy, reproduce, download, reverse engineer, or obtain any other
         interest in the Proprietary System or the Third Party Proprietary
         System, or their specifications in whole or in part. In the event
         Customer shall come into possession of any source

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         or object code associated with the Proprietary System or the Third
         Party Proprietary System, Customer shall immediately notify IMS and
         return the source or object code associated with Proprietary System or
         the Third Party Proprietary System in its possession and all copies of
         any kind thereof to IMS.

D.       Customer covenants and agrees not to disclose or otherwise make the
         Proprietary System or the Third Party Proprietary System available to
         any person other than employees, insurance sales agents ("Agents") or
         representatives of the Customer required to have access or use of the
         Proprietary System or the Third Party Proprietary System to facilitate
         IMS' or Customer's performance under this Agreement. Customer agrees to
         obligate each such employee, Agents, or representative to a level of
         care sufficient to protect the Proprietary System and the Third Party
         Proprietary System from unauthorized disclosure.

E.       The obligations of Customer under this Article shall survive
         termination of this Agreement, regardless of the reason for
         termination.

ARTICLE VIII.     TERMINATION

A.       Either party may terminate this Agreement at the end of the Minimum
         Operating Term or at the end of any Extended Operating Term, provided
         the terminating party gives the other party at least three (3) months
         prior written notice of such termination.

B.       This Agreement shall also terminate:

         a) at the election of the Customer, upon written notice to IMS, if IMS
         becomes insolvent, if it makes an assignment for the benefit of its
         creditors, if a petition for relief under the United States Bankruptcy
         Code is filed by or against it and it is not dismissed within thirty
         (30) days of being filed, or if a trustee, receiver or other custodian
         of its assets is appointed;

         b) at the election of IMS, upon written notice to Customer, if Customer
         becomes insolvent, if it makes an assignment for the benefit of its
         creditors, if a petition for relief under the United States Bankruptcy
         Code is filed by or against it and it is not dismissed within thirty
         (30) days of being filed, or if a trustee, receiver or other custodian
         of its assets is appointed (including, but not limited to, any
         proceeding pursuant to any state or federal action governing insurer
         insolvency);

         c) at the election of the Customer, if IMS materially breaches any
         provision of this Agreement and fails to cure such breach within sixty
         (60) days after written notice thereof is given to IMS by the Customer;

         d) at the election of IMS, if Customer materially breaches any
         provision of this Agreement and fails to cure such breach within sixty
         (60) days after written notice thereof is given to Customer by IMS
         (except for Customer's failure to pay any and all fees and expenses due
         under Article VI of this Agreement, in which case Customer must cure
         such breach within thirty (30) days after written notice thereof is
         given to Customer by IMS);

         e) at the election of IMS, upon written notice to Customer, in the
         event of a Change of Control of Customer unless (i) Customer has
         provided IMS not less than sixty (60) days advance written notice of
         the proposed Change of Control and (ii) IMS has agreed in writing to
         such Change of Control.

The initiation under this Agreement of any dispute resolution procedure shall
not prevent a party from terminating this Agreement in accordance with this
Article VIII.

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C.       On expiration or termination of this Agreement, IMS shall return to
         Customer all of Customer's Confidential Information, either in
         electronic or hard copy form, in IMS' possession and delete any
         electronic copies thereof related to the Insurance Administration
         Services provided by IMS during the term of this Agreement; Customer
         shall do the same and cause Customer's agents and representatives
         (including, but not limited to, any third party given access to the
         Confidential Information) to do the same relative to IMS' Confidential
         Information. Customer shall pay IMS (in accordance with SCHEDULE B then
         in effect) any and all Service Fees, Claim Administration Fees,
         Miscellaneous Fees and third party fees due IMS for Insurance
         Administration Services performed pursuant to this Agreement. IMS and
         Customer shall cooperate in any transition period during the wind-up of
         Insurance Administration Services provided Customer under this
         Agreement. If Customer requires assistance in converting Customer's
         data to a new format, or requires assistance from IMS relative to
         Customer's transition to an alternative claim administration
         arrangement, then IMS shall provide such services at the then current
         rates charged by IMS for the services specified in Section IV of
         SCHEDULE B. This obligations under this Paragraph (C) shall survive any
         termination of this Agreement.

ARTICLE IX.       WARRANTIES AND COVENANTS

IMS covenants that IMS will comply in all material respects with the law of the
state or states covered by this Agreement and with the rules and regulations of
all regulatory authorities having jurisdiction over IMS' activities, and shall,
whenever necessary, maintain at its own expense all required licenses to
transact business in such states. IMS warrants to Customer that (a) IMS owns or
otherwise has the right to use the Proprietary System used to perform the
Insurance Administration Services, and the rights to such Proprietary System
granted hereunder will not knowingly infringe upon a third party's copyright or
patent rights; (b) IMS is duly authorized to transact the business of servicing
insurance companies; and (c) the express warranties provided here and elsewhere
in this Agreement are IMS' only warranties and no other warranty, express or
implied, including any warranty of merchantability, fitness or fitness for a
particular purpose, will apply to the provision of Insurance Administration
Services under this Agreement.

ARTICLE X         LIABILITY, LIMIT OF LIABILITY, INDEMNITIES AND REMEDIES

A.       The parties shall assume the following obligations and liabilities as
         specified below and subject to the limitations on liability set forth
         in Article X, (B) below:

         a)       IMS shall indemnify, defend and hold harmless Customer, its
                  officers, directors, employees and controlling persons from
                  any liability, cost, loss, fine, penalty, claim, demand,
                  damage or expense, including reasonable attorneys' fees,
                  incurred solely and directly as a result of any material
                  breach of IMS' obligations under this Agreement or the
                  material breach of any representation or warranty made by IMS
                  to Customer pursuant hereto;

         b)       Customer shall indemnify, defend and hold harmless IMS, its
                  officers, directors, employees and controlling persons from
                  any liability, cost, loss, fine, penalty, claim, demand,
                  damage or expense, including reasonable attorney's fees,
                  incurred solely and directly as a result of (i) any material
                  breach of Customer's obligations under this Agreement, or (ii)
                  the material breach of any representation or warranty made by
                  Customer to IMS pursuant hereto;

         c)       Customer agrees that in the event IMS is in violation of any
                  code, statute or law(s) due to the acts or omissions of
                  Customer, or the servants, employees, representatives,
                  adjusters, or Agents of Customer, then Customer shall assume
                  the responsibility and liability for such acts or omissions
                  and shall indemnify and hold IMS harmless for any such
                  liability;

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B.       Except for: (i) fees and expenses payable to IMS under Article VI of
         this Agreement; (ii) acts of fraud, or willful misconduct; and (iii)
         violations of Article VII of this Agreement, each party's maximum
         liability ("Maximum Liability") to the other party for any cause
         whatsoever, during any one calendar year shall be limited to direct
         damages incurred by that party and shall not exceed the amount of
         compensation paid by the Customer under SCHEDULE B of this Agreement
         for the six (6) months immediately preceding the breach or cause of
         liability. Further, IMS shall not be liable for any lost profits,
         business goodwill, or other consequential, punitive, special or
         incidental damages incurred by Customer.

C.       If data is processed in error due directly to an error or defect in the
         Insurance Administration Services provided by IMS, then upon IMS
         receiving notice of such error or defect, IMS shall reprocess such data
         without charge to Customer.

D.       All parties agree to promptly give the others notice upon being
         notified or becoming aware of any and all allegations or claims, which
         could give rise to a claim under this Article.

ARTICLE XI.       GENERAL AGREEMENTS

A.       This Agreement and all matters arising hereunder shall be governed by
         and determined in accordance with the laws of the State of Florida
         without giving effect to any choice of law provisions.

B.       The parties shall not be liable or deemed to be in default hereunder
         for any delay or failure in performance under this Agreement or
         interruption of the Insurance Administration Services resulting,
         directly or indirectly, from acts of God (including but not limited to
         weather catastrophes such as floods, hurricanes, tornadoes, windstorms,
         ice storms, blizzards and hail storms), civil or military authority,
         labor disputes, shortages of suitable parts, materials, labor or
         transportation or any similar cause beyond the reasonable control of
         the parties.

C.       Any and all notices, designations, consents, offers, acceptances, or
         any other communication provided for herein shall be given in writing
         by hand delivery, by overnight carrier, by registered or certified mail
         or by facsimile transmission and shall be addressed as follows:

         As to Customer:      Middlesex Mutual Assurance Company
                              213 Court Street
                              Middletown, CT 06457-0891
                              Fax Number: (860) 638-5093
                              Attention: Bill Sheridan, Senior Vice President

         As to IMS:           Insurance Management Solutions, Inc.
                              360 Central Avenue, 16th Floor
                              St. Petersburg, FL 33701
                              Fax Number: (727) 803-2076
                              Attention: David Howard, President

         Notices sent by hand delivery shall be deemed effective on the date of
         actual hand delivery. Notices sent by overnight carrier shall be deemed
         effective on the next Business Day after being placed into the hands of
         the overnight carrier. Notices sent by registered or certified mail
         shall be deemed effective on the fifth Business Day after being
         deposited into the post office. Notices sent by facsimile transmission
         shall be deemed to be effective on the day when sent if sent prior to
         4:30 p.m. (the time being determined by the time zone of the
         recipient), otherwise they shall be deemed effective on the next
         Business Day.

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D.       This Agreement, and the exhibits, schedules and appendices attached
         hereto, contain all of the prior oral and/or previously written
         agreements, representations, and arrangements between the parties
         hereto. There are no representations or warranties other than those set
         forth herein. No change or modification of this Agreement, including
         the exhibits, schedules and appendices hereto, shall be valid unless
         the same shall be in writing and signed by all of the parties hereto.
         All exhibits, schedules, appendices, addendum of any kind, or
         attachments to this Agreement shall be made a part of this Agreement
         and shall be subject to all terms and conditions of this Agreement.
         Articles V (B), VII, and VIII (C) shall survive any termination of this
         Agreement.

E.       Words of a gender used in this Agreement shall be held to include any
         other gender, the words in a singular number held to include the
         plural, when the sentence so requires. Article headings are intended
         for purposes of description only and shall not be used for purposes of
         interpretation of this Agreement.

F.       Should any part of this Agreement for any reason be declared invalid,
         such decision shall not effect the validity of any remaining portion,
         which remaining portion shall remain in full force and effect as if the
         Agreement had been executed with the invalid portion thereof
         eliminated. It is, therefore, declared the intention of the parties
         hereto that each of them will have executed the remaining portion of
         this Agreement without including therein any such part, parts or
         portion which may, for any reason, be hereafter declared void.

G.       If either party should bring a Court action alleging breach of this
         Agreement or seeking to enforce, rescind, renounce, declare, void or
         terminate this Agreement or any provisions thereof, the prevailing
         party shall be entitled to recover all of its legal expenses, including
         reasonable attorneys' fees and costs (including legal expenses for any
         appeals taken), and to have the same awarded as part of the judgment in
         the proceeding in which such legal expenses and attorneys' fees were
         incurred.

H.       Neither IMS nor Customer shall assign this Agreement or any of its
         rights hereunder without the prior written consent of the non-assigning
         party.

I.       The parties agree not to disclose the terms and conditions of this
         Agreement to any third party, except (i) as required in the normal
         conduct of Customer's business, or (ii) as required by law or
         regulation including, without limitation, any Federal securities law,
         or regulation.

ARTICLE XII.      DISPUTE RESOLUTION PROCEDURES

A.       The parties will attempt in good faith to promptly resolve any material
         dispute regarding this Agreement by negotiations between senior
         management ("Senior Management") of the parties. Senior Management of
         each party will meet within ten (10) calendar days of notice ("Notice
         of Dispute") by a party of the existence of a material dispute, at a
         mutually agreed time and place, to resolve the material dispute. Senior
         Management, who shall have the authority to settle the dispute, shall
         prepare and exchange memoranda stating the issues in the material
         dispute and their positions. If the material dispute is not resolved to
         the mutual satisfaction of the parties within seven (7) calendar days
         of the meeting of Senior Management, then the parties may attempt to
         resolve the controversy using mediation.

B.       If the matter has not been resolved pursuant to the aforesaid mediation
         procedure within thirty (30) calendar days of the issuance of a party
         of a Notice of Dispute, or if either party will not participate in
         mediation, then either party may initiate arbitration upon fifteen (15)
         calendar days written notice to the other party. Notwithstanding the
         foregoing, all deadlines specified above may be extended upon mutual
         written agreement of the parties.

C.       Except for the right of either party to apply to a court of competent
         jurisdiction for review of the

                                       9
<PAGE>

         award of arbitration, for a temporary restraining order, preliminary
         injunction or other equitable relief to preserve the status quo, or
         disputes relating to breach of the confidentiality, non-disclosure or
         trade secret provisions of this Agreement, all claims, disputes,
         controversies and other matters relating to breach of this Agreement,
         and which cannot be resolved by the parties shall be settled by
         arbitration in accordance with this Agreement.

D.       Notice requesting arbitration ("Arbitration Notice"), or any other
         notice made in connection therewith, shall be made in writing by one
         party and sent by certified mail, return receipt requested, to the
         other party. The Arbitration Notice shall state in particular all
         issues to be resolved in the view of the complaining party, shall
         appoint the arbitrator selected by the complaining party and shall set
         a tentative date for the arbitration hearing, which date shall be no
         sooner than forty-five (45) calendar days and no later than ninety (90)
         calendar days from the date that the Arbitration Notice is mailed.
         Within twenty (20) calendar days of receipt of the complaining party's
         Arbitration Notice, the respondent shall notify the complaining party
         of the location for conducting arbitration and the name of its
         appointed arbitrator. When the two arbitrators have been appointed,
         they shall agree on a third independent arbitrator and shall appoint
         such person by written notice to the parties signed by both arbitrators
         within thirty (30) calendar days from the date of the appointment of
         the second arbitrator. If the two arbitrators fail to agree upon the
         appointment of an independent arbitrator at the end of thirty (30)
         calendar days following the appointment of the second arbitrator, then
         the independent arbitrator shall be appointed by the American
         Arbitration Association ("AAA"), or its successor, in accordance with
         its then prevailing commercial arbitration rules then in effect. The
         three (3) arbitrators shall constitute the arbitration board ("Board").

E.       The members of the Board shall be active or retired (i) lawyers or
         professionals familiar with insurance and/or (ii) active or former
         officers or management employees of insurance and/or data processing
         firms and/or software development companies. The person selected by the
         two respective arbitrators appointed by the parties shall be the umpire
         or chief arbitrator and must be a licensed attorney.

F.       Arbitration shall be conducted in accordance with the Commercial Rules
         of the American Arbitration Association ("AAA") then in effect except
         as modified herein.

G.       The parties agree that all then current employees of each with material
         relevant information will be voluntarily produced, at the employer's
         expense, for all proper discovery and arbitration hearings.

H.       The cost of the arbitration relative to the arbitrators and the AAA
         ("Costs") shall be borne equally pending the arbitrators' award. Each
         party shall bear its own expenses for attorneys' fees. The prevailing
         party in any arbitration proceeding hereunder shall be entitled, in
         addition to such other relief as may be granted, to recover the portion
         of the Costs incurred by that party in connection with arbitration
         under the Agreement prior to the award.

I.       The parties agree that the Board shall be required to render its
         decision in writing within thirty (30) calendar days of the conclusion
         of the arbitration proceedings, unless such time shall be extended by
         mutual written agreement of the parties.

J.       With respect to any matter brought before the Board, the Board shall
         make a decision having regard to the intentions of the parties, the
         terms of this Agreement, and custom and usage of the insurance and data
         processing industry. Such decisions shall be in writing and shall state
         the findings of fact and conclusions of law upon which the decision is
         based, provided that such decision may not (i) award consequential,
         punitive, special, incidental or exemplary damages, or (ii) include a
         suspension of this Agreement or any provisions hereof. The decision
         shall be based exclusively upon the evidence presented by the parties
         at a hearing in which evidence shall be

                                       10
<PAGE>

         allowed. Said decisions may be reviewable and vacated, modified or
         corrected, in whole or in part, by appropriate courts of competent
         jurisdiction for clear abuses of discretion or errors at law by the
         Board. If the decision is not vacated, modified, or corrected in whole
         or in part upon an appeal, such decision shall be final and binding
         upon all parties to the proceeding and may be entered by either party
         in any court having competent jurisdiction.

            (The remainder of this page is intentionally left blank.)

                                       11
<PAGE>

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Agreement to be effective as of the ______
day of _________, 2001.

"IMS"

INSURANCE MANAGEMENT SOLUTIONS, INC.

By: s/s D.M. Howard
   ------------------------------------
As its: Pres/CEO
       --------------------------------
Date: 10.17.01
     ----------------------------------

"CUSTOMER"

MIDDLESEX MUTUAL ASSURANCE COMPANY

By:
   ------------------------------------

As its:  Senior Vice President
       --------------------------------
Date:  9-7-01
     ----------------------------------

                                       12
<PAGE>

SCHEDULES:

<TABLE>
<S>             <C>
SCHEDULE "A" -  AUTHORIZED STATES AND INSURANCE PROGRAM
SCHEDULE "B" -  FEE SCHEDULE
</TABLE>

EXHIBITS:

<TABLE>
<S>            <C>
EXHIBIT 1 -    WYO FLOOD INSURANCE SERVICES
</TABLE>

                                       13
<PAGE>

                                   SCHEDULE A

                     AUTHORIZED STATES AND INSURANCE PROGRAM

IMS shall provide Insurance Administration Services as described in EXHIBIT I
for the following authorized line(s) of business ("Authorized Line of Business")
in the following authorized state(s) ("Authorized States"):

1.       AUTHORIZED LINE OF BUSINESS:

         WYO Flood Insurance

2.       AUTHORIZED STATES:

         The State of Connecticut, Maine, New Hampshire, Vermont, New York and
         such other states as may be mutually agreed upon in writing by Customer
         and IMS.

                                       14
<PAGE>

                                   SCHEDULE B

                                  FEE SCHEDULE

[*]

* Indicates that material has been omitted and confidential treatment has been
  requested therefor. All such omitted material has been filed separately with
  the SEC pursuant to Rule 24b-2.

                                       15
<PAGE>

                                    EXHIBIT I

                  INSURANCE ADMINISTRATION SERVICES (WYO FLOOD)

         WHEREAS, The Federal Emergency Management Agency ("FEMA") and the
Federal Insurance Administration ("FIA") administer the National Flood Insurance
Program ("NFIP") and Customer is an insurance company duly licensed to write
flood insurance in the state or states to which this Agreement pertains and is
approved by FIA to act as a Write Your Own Company ("WYO Company") under the
Write Your Own Flood Insurance Program ("WYO Flood Program"), a program offered
under the NFIP; and

         WHEREAS, Customer wishes to engage the services of IMS to administer
certain of the Customer's obligations as a WYO Company in the state(s)
("Authorized States") set forth in SCHEDULE A.

1)       DEFINITIONS. Capitalized terms not otherwise defined in the Agreement
         or in this Exhibit shall be construed as otherwise generally understood
         in the insurance and data processing industry.

2)       POLICY ADMINISTRATION. IMS shall administer Customer's WYO Flood
         Program policies ("WYO Policies") performing the services listed
         hereunder in accordance with the NFIP, as amended, and all implementing
         regulations as well as Customer's Write Your-Own Arrangement
         ("Arrangement") with FEMA. The same standards by which Customer is
         bound shall be those by which IMS is bound to Customer.

a)       Underwriting.

         -        Review WYO Policy application for completeness/contact Agent
                  as applicable;

         -        Create WYO Policy file;

         -        Underwriting based on NFIP guidelines.

b)       Data Entry. (subject to the 120 Day Internet Access Milestones
         specified in Schedule B)

         -        New WYO Policy business;

         -        WYO Policy changes;

         -        Mortgagee changes;

         -        WYO Flood insurance Agent changes;

         -        Endorsements;

         -        Cancellations.

c)       WYO Policy Issuance.

         -        WYO Policy for new business, renewals and endorsements where
                  declaration page issuance is required;

         -        WYO Policy Renewal processing;

         -        WYO Policy automated rating;

         -        WYO Policy print declarations and related WYO Policy forms.

d)       Billing & Collection.

         -        Print invoices, reminders, cancellation notification, return
                  WYO Policy premium disbursements;

         -        Mortgage activity processing;

         -        EFT processing;

         -        Process cancellations for non-payment.

e)       Customer Service.

         -        Provide a dedicated customer service support call center;

         -        Respond to Customer's WYO Policyholder and WYO flood insurance
                  sales Agent telephone inquires;

                                       17
<PAGE>

         =        Process requests for WYO Policy changes;

         -        Respond to correspondence related to WYO Policy and WYO Policy
                  claim administration services;

         -        Track and respond to complaints related to WYO Policy and/or
                  WYO Policy claim administration services; IMS customer service
                  hours of operation 8:00 a.m. to 8:00 p.m. Eastern Standard
                  Time ("EST").

f)       Bureau Reporting.

         -        Process and balance WYO Policy premium and WYO Policy loss
                  data;

         -        Edit and correct invalid data;

         -        Prepare and mail Bureau transmittals;

         -        To the best of IMS knowledge, provide on-going regulatory
                  changes;

         -        Maintain WYO Policy history files.

g)   Accounting Administration/Premium.

         -        Posting, balancing, and control of WYO Policy premium
                  receivable;

         -        Accounting and payment of Customer's WYO flood insurance
                  Agents WYO Policy commissions;

         -        Issuance, control and accounting for disbursements for WYO
                  Policy premium refunds, WYO Policy commissions.

h)   Financial Accounting.

         -        Issuance, control and accounting for disbursements for general
                  expenses;

         -        Day-to-day management of short term cash;

         -        Provide reasonable and customary financial management reports.

i)   Treasury.

         -        Receive and post WYO Policy payments;

         -        Issuance, control and accounting for disbursements of WYO
                  Policy premium related expenses;

         -        Bank reconciliation of WYO Policy premium disbursements;

         -        OCR WYO Policy payment processing; o Mortgagee billing.

j)   Agency Administration.

         -        Agent of record assignment and control;

         -        1099 reporting;

         -        Maintain WYO flood insurance Agent files.

k)   Print & Distribution Services.

         -        Automated document library;

         -        Electronic document assembly;

         -        Electronic document archival/retrieval;

         -        Automated finishing/insertion facility;

         -        Mail pre-sort facility;

         -        Mailing WYO Policy, WYO Policy billings and WYO Policy
                  renewals (including postage and supplies);

         -        Document Imaging.

l)   System Administration.

         -        Availability of Proprietary System to Customer and Customer's
                  WYO Policy claim vendor;

         -        Process daily, weekly, monthly, and annual cycles;

         -        Internet processing capabilities subject to Internet use
                  limitations specified in Schedule B.

                                       18
<PAGE>

3)       CASH MANAGEMENT.

a)       Banking Arrangement. IMS and Customer shall establish a banking
         arrangement that complies with the Arrangement and other WYO Flood
         program requirements, and which will provide for the establishment of
         an NFIP restricted account ("Restricted Account") with Customer as
         custodian, and a FEMA letter of credit ("Letter of Credit"), with
         additional accounts as needed to facilitate WYO Flood Program
         operations, all in conformity with FEMA/FIA guidelines. Customer shall
         grant specific IMS' employees check-signing authority on any Restricted
         Account and the authority to initiate appropriate drawdowns against
         Customer's Letter of Credit, in order for IMS to act on Customer's
         behalf in making disbursements for Customer liabilities established by
         the Arrangement, the WYO Flood Program, and this Agreement. All such
         authorizations shall be in writing and may be revoked, amended or
         modified at any time by Customer upon thirty (30) days advanced written
         notice to IMS. Notwithstanding the foregoing, IMS shall not draw down
         on Letter of Credit for an amount that exceeds $50,000.00 without prior
         approval from the Chief Financial Officer of Customer, which approval
         shall not be unreasonably withheld and shall be given within 24 hours
         of the request being made by IMS.

b)       Premium Remittance -IMS shall establish procedures, as determined by
         FIA, for a timely deposit and remittance of funds to the U.S. Treasury
         via authorized automatic clearinghouse mechanism. Gross premium
         collected by IMS, for WYO Flood program business written under this
         Agreement, shall be remitted to the FIA by IMS net of the established
         NFIP Expense Allowance. ("Allowance") , which Allowance expenses to be
         paid under the Allowance include Carrier's operating and administrative
         expenses.

c)       Financial Data - IMS shall maintain supporting documentation for all
         bank accounts over which it has authority. On a monthly basis, IMS
         shall prepare financial data, reflecting all debits and credits with
         respect to WYO Flood Program business administered under this
         Agreement, including agents' commissions and IMS' Service Fees paid.

d)       WYO Flood Program Reimbursements - Any WYO Flood Program reimbursements
         made pursuant to the Arrangement, including, but not limited to, those
         for the unallocated loss adjustments expenses, the allocated loss
         adjustments, and for approved special allocated loss adjustments
         expenses, shall be payable to IMS upon receipt by Customer.

e)       Marketing Goals - Customer shall maintain responsibility for any risk,
         or shall be entitled to any reward, that may be associated with
         achieving or failing to achieve any marketing goal set by the FIA or
         FEMA.

4)       CLAIM ADMINISTRATION. IMS shall provide Claims administration in
         accordance with the Arrangement, the Financial Control Plan and the
         Agreement, which claim administration processing services are outlined
         below. Any litigation costs not reimbursed by FEMA would be the
         responsibility of the Customer. IMS may also rely on the information
         and direction contained in the WYO Flood Program Claims Manual, the
         FEMA Adjuster Manual, the Flood Insurance Agent's Manual, the Standard
         Flood Insurance Policy, the WYO Operational Overview, and/or other WYO
         Flood Program instructional material.

a)   Claim Management Facilitation.

         -        Twenty-four (24) hour reporting capability, first notice of
                  loss, coverage for verification and WYO Policy claim;

         -        Investigation of WYO Policy claim;

         -        Fast track unit;

         -        Reinspection and audit;

         -        Claims handling standards/best practices;

         -        Claim check issuance;

                                       19
<PAGE>

         -        Management reports;

         -        WYO Policyholder satisfaction surveys;

         -        Special Investigation Unit ("SIU") services;

         -        Salvage & subrogation claim processing;

         -        Litigation support.

b)   Catastrophe Preparation and Response.

         -        Preparedness by developing media reference guides and notices,
                  adjuster workshops, and training manuals; provide storm
                  tracking; reserve equipment and supplies; establish
                  procedures;

         -        Response in case of a catastrophic event by establishing and
                  staffing satellite service centers; automating the
                  distribution of claims to adjusters; internal
                  examinations/external reinspections;

         -        Recovery by providing management reports, audit/reinspection
                  program, SIU and oversight operations.

5)       ADJUSTING FIRM. IMS' Colonial Catastrophe Claims Service will be the
         authorized adjusting firm ("Adjusting Firm") for all claims adjusting
         work on behalf of Customer. However, Customer may designate a different
         Adjusting Firm with thirty (30) days written notice to IMS.

6)       DISASTER RECOVERY PLAN. IMS shall perform its' full range Disaster
         Recovery Plan on an annual basis. Customer has the right to observe the
         Disaster Recovery Plan at its own expense, provided that it has
         requested in writing to participate within thirty (30) days of planned
         execution.

7)       STATISTICAL REPORTING. IMS shall maintain Customer's data within IMS'
         policy, claims and general ledger systems. IMS shall prepare and submit
         to FIA, monthly financial and statistical reports, reconciliation
         reports, certifications, and statistical tapes on Customer's behalf, in
         accordance with WYO Flood Program Accounting Procedures and the
         Transaction Record Reporting and Processing Plan ("TRRP Plan").

8)       SPECIAL SERVICES.

         a)       Audit - At Customer's expense and at IMS' premises, IMS shall
                  conduct a biennial audit of any and all WYO Flood Program
                  business written by Customer pursuant to this Agreement. IMS
                  shall select an independent auditor and IMS shall present the
                  expense estimate for the biennial audit to Customer. Within
                  fifteen (15) days of receiving the estimate, Customer shall
                  have the option of selecting their own independent auditor to
                  conduct the audit or proceed with the independent auditor
                  selected by IMS.

         b)       Zone Determination Services - IMS shall provide flood zone
                  determinations to the Customer (or Customer's agents) to
                  assist in writing a WYO Policy to be placed with the Customer
                  and administered by IMS. .

         c)       Rating Software - From the Effective Date of this Agreement up
                  to the one (1) year anniversary of the date that IMS provides
                  internet access (which shall include deployment of the
                  internet access into live production) to any of Customer's
                  insurance sales agents for the Authorized Line of Business
                  within the Authorized States, IMS will make available to
                  Customer and/or Customer's insurance sales agents, rating
                  software (which by definition is a Proprietary System) for the
                  ability to provide quotations, prepare new business
                  applications, endorsements and cancellation of the WYO Policy.

         d)       Training - Upon Customer's request and excluding travel
                  expenses, IMS will provide four (4) training sessions per
                  calendar year to Customer and/or Customer's Agents. Customer
                  will provide the training facility. Additional requests for
                  training will be charged at One Hundred and Twenty Five
                  Dollars ($125) per day plus reasonable per

                                       20
<PAGE>

diem and travel expenses incurred.

         e)       Marketing Material. IMS will make available to Customer its
                  marketing or promotional materials, which IMS may customize
                  and produce for Customer at Customer's expense.

         f)       Agency Rollover Services. Within a reasonable time of
                  Customer's request, IMS will provide rollover services to
                  those Customer agents that wish to roll over 500 or more WYO
                  Policies in their book of business to Customer. In the event
                  that there are several Agents within a concentrated
                  geographical area wishing to roll over 500 or more WYO
                  Policies to Customer, IMS will provide rollover service to all
                  Agents within that area at the same time. Due to the potential
                  size of the project, IMS will need Customer to provide a full
                  listing of Agents, location and size of business. IMS will
                  create a schedule to perform this service.

         g)       Additional Fees & Services. Additional services not specified
                  in this Agreement may be provided by as mutually agreed upon
                  in writing between the Customer and IMS in writing.

                                       21<PAGE>
                                                                   EXHIBIT 10.71

                   INSURANCE ADMINISTRATION SERVICES AGREEMENT
                   ------------------------------------------

     THIS INSURANCE ADMINISTRATION SERVICES AGREEMENT ("Agreement") is effective
as of October 1, 2001 ("Effective Date"), by and between INSURANCE MANAGEMENT
SOLUTIONS, INC. ("IMS"), a corporation  organized and existing under the laws of
the State of Florida with its principal place of business located at 801 94th
Avenue North, St. Petersburg, Florida, and each of BANKERS INSURANCE COMPANY
("BIC"), BANKERS SECURITY INSURANCE COMPANY ("BSIC") and FIRST COMMUNITY
INSURANCE COMPANY ("FCIC"), herein collectively referred to as "Customer", all
having their principal place of business at 360 Central Avenue, Saint
Petersburg, Florida 33701.

     WHEREAS, Customer wishes to engage the services of IMS to administer
certain of the Customer's insurance administration obligations for certain
lines of business in certain authorized states;

     WHEREAS, IMS wishes to provide such services as set forth herein.

     NOW THEREFORE, IN CONSIDERATION OF the mutual covenants and agreements
hereinafter set forth, the parties hereto do covenant and agree as follows:

ARTICLE I.   DEFINITIONS

Unless the context clearly requires otherwise, the following terms when used in
this Agreement shall have the meanings set forth below:

A.    "Authorized Lines of Business" means the lines of business expressly set
      forth in SCHEDULE A of this Agreement.

B.    "Authorized States" means the states expressly set forth in SCHEDULE A of
      this Agreement.

C.    "Business Day" means any day other than a Saturday, Sunday or other day
      which is a bank holiday for Florida State banks or an IMS paid holiday
      (New Year's Day, Memorial Day, Independence Day, Thanksgiving Day, day
      after Thanksgiving, Christmas Eve (after 12 P.M. Eastern Standard Time)
      and Christmas Day).

D.    "Insurance Administration Services" means the services to be rendered
      pursuant to this Agreement and as more specifically set forth on EXHIBIT I
      and EXHIBIT II, attached hereto, in the Authorized States, and all
      applicable laws and regulations.

E.    "Insurance Program" means the Customer's insurance products within the
      Authorized Line(s) of Business to be offered within the Authorized States.

F.    "Technical Information" means and shall include (without limitation)
      computer programs, databases, designs, algorithms, processes, structures,
      data formats, business methods, know how, and research and development
      information.

G.    "Change of Control" means, with regards specifically to Schedule B Section
      V, (a) a sale, transfer or pledge, or the issuance of fifty (50%) percent
      or more of the voting stock of a party hereto to any third party that is
      not an Affiliate of such party; or (b) a sale, transfer or pledge of a
      substantial portion of the material assets of a party, or any merger or
      consolidation of a party with non-affiliated entity or entities.

                                       1

<PAGE>
ARTICLE II.   TERM

The initial term of the Agreement shall commence on the Effective Date and
shall have a term of Sixty (60) calendar months following the Effective Date
("Initial Term"), unless terminated earlier pursuant to the other provisions
within this Agreement. Following the Initial Term, this Agreement shall
continue in full force and effect until terminated by either party, for any
reason or no reason and upon ninety (90) days prior written notice (unless
terminated earlier pursuant to the termination provisions within Article VIII).

ARTICLE III.  RESPONSIBILITIES OF IMS

A.   IMS shall dedicate the human, equipment and computer resources commercially
     reasonably required to provide Customer with the Insurance Administration
     Services, during the term of this Agreement, for the Insurance Program
     within the Authorized States.

B.   IMS' performance of the Insurance Administration Services for every
     Authorized Line of Business shall meet any service level standard
     ("Standard") described on that certain "Service Level Agreement" attached
     hereto as EXHIBIT III and by this reference made a part hereof (herein, the
     "Service Level Agreement"). During any given two (2) month rolling period,
     if IMS' performance of the Insurance Administration Services for any
     Authorized Line of Business fails to meet any Standard ("Non-Compliant
     Standard") set forth in the Service Level Agreement not as a result of
     events that are beyond IMS' reasonable control (subject to the provisions
     of Article XI (A) of this Agreement), IMS shall: (a) remedy such
     Non-Compliant Standard during the two (2) month rolling period following
     written notice ("Non-Compliance Notice") from Customer; or (b) submit a
     written plan ("Improvement Plan") to Customer, that shall be reasonably
     acceptable to Customer, that shall detail IMS' plan and time frame to
     remedy such Non-Compliant Standard. Should IMS fail to submit to Customer
     an Improvement Plan that is reasonably acceptable to Customer, or should
     IMS fail to remedy such Non-Compliant Standard during any two (2) month
     rolling period following the Non-Compliant Notice, then Customer may
     terminate this Agreement (subject to IMS' ability to dispute the proposed
     termination under the Dispute Resolution Procedures of Article XII) by
     providing at least thirty (30) days prior written notice to IMS
     ("Non-Compliance Termination Notice") of its intent to terminate this
     Agreement. Specifically, if Customer provides IMS with a Non-Compliance
     Termination Notice, then IMS shall have thirty (30) days from the day it
     receives the Non-Compliance Termination Notice to dispute the proposed
     termination of the Agreement via a written notice to Customer to dispute
     termination ("Termination Dispute Notice"). If IMS  provides Customer with
     a Termination Dispute Notice then the termination shall be stayed, the
     parties shall submit to binding arbitration in accordance with Article XII
     with regards to the termination issue and the Agreement may only be
     terminated by a written decision of the Arbitration Board (as that term is
     defined in Article XII).

C.   IMS shall designate an employee ("Account Manager") of sufficient
     status and binding discretionary decision making authority to act as
     liaison with Customer to facilitate IMS' performance of the Insurance
     Administration Services under this Agreement. The Account Manager shall
     provide written and/or oral communication of the status of administration
     of the Insurance Administration Services as agreed to by and between
     Account Manager and Customer.

D.   IMS shall, based on accepted industry standards and in accordance with
     generally accepted insurance and accounting practices, as designated by the
     applicable regulatory bodies, maintain complete and orderly copies of all
     records and policy and/or claims files as may be required as a result of
     IMS performing the Insurance Administration Services on behalf of Customer.
     These copies shall be retained by IMS, in a format or media mutually
     defined by Customer and IMS which shall be in compliance with applicable
     laws and regulations. Upon termination of this Agreement all original
     records shall automatically be returned to Customer; however, IMS shall be
     entitled to retain copies thereof so long as (a) the retention of original
     records is necessary to remain in compliance with applicable regulatory or
     statutory rules and regulations and (b) IMS complies with and remains at
     all times in compliance with the confidentiality provisions of Article V
     hereof, which provisions shall survive termination of this Agreement.

                                       2
<PAGE>
E.   IMS shall maintain an errors and omissions policy issued by an insurance
     carrier reasonably acceptable to Company, with policy limits of no less
     than the greater of (i) Ten Million ($10,000,000) Dollars or (ii) an amount
     sufficient to satisfy the financial responsibility requirements of the
     insurance codes of applicable states, and with a deductible no greater than
     Fifty Thousand ($50,000) Dollars. IMS agrees to maintain coverage in force
     thereunder by replacement or renewal of the policy or by the purchase of an
     extended claims reporting provision for a period of not less than one (1)
     year subsequent to the expiration date of this Agreement. The Company
     reserves the right to verify coverage at any time.

F.   IMS shall maintain all licenses and regulatory approvals necessary to
     conduct business contemplated by this Agreement. IMS shall be and remain in
     compliance with all laws and regulations which has any affect on any
     performance by IMS under this Agreement.

ARTICLE IV.    RESPONSIBILITIES OF CUSTOMER

A.   During the term of this Agreement, Customer shall provide to IMS, in a
     timely manner, any and all data, information and other items reasonably
     required to enable IMS to perform the Insurance Administration Services
     specified in EXHIBIT I and EXHIBIT II of this Agreement. Customer
     represents and warrants to IMS that it owns and possesses all property
     rights to its corporate and subsidiary logos and hereby grants and warrants
     to IMS a personal, non-exclusive, limited, non-transferable,
     non-assignable, and revocable license to use Customer's corporate and
     subsidiary logos (and any other copyrighted or trademarked property of
     Customer that may be provided to IMS under this Agreement) while performing
     and only in conjunction with business directly related to the Insurance
     Administration Services. Customer acknowledges and agrees that delays in
     delivery of required documentation, data and/or information by Customer may
     result in a similar delay in fulfilling Insurance Administration Services,
     and that such a delay in performing the Insurance Administration Services
     shall not be deemed a breach of the Agreement so long as such delay is
     proximately caused and rationally related to Customer's delay in delivering
     such information.

B.   CUSTOMER ACKNOWLEDGES AND AGREES THAT IMS ASSUMES NO INSURANCE COVERAGE
     RISK FOR THE BUSINESS PROCESSED UNDER THIS AGREEMENT, OTHER THAN THE
     OBLIGATIONS OF IMS THAT RELATE TO INDEMNIFICATION AND ERRORS AND OMISSIONS
     INSURANCE AS MAY BE SPECIFICALLY DESCRIBED IN THIS AGREEMENT.

C.   Customer shall designate manager level employee(s) of sufficient status and
     binding decision making authority to act as a liaison with IMS and to
     facilitate Customer's role as IMS performs the Insurance Administration
     Services specified in EXHIBIT I and EXHIBIT II of this Agreement.

ARTICLE V.     CUSTOMER ACCESS TO RECORDS/CONFIDENTIAL INFORMATION

A.   Customer will be permitted reasonable access to all records and information
     maintained by IMS on behalf of Customer (excluding, specifically,
     proprietary Technical Information).

     Except under circumstances where the applicable Proprietary System or Third
     Party Proprietary System is inoperative due to reasonable and necessary
     maintenance or an unforeseen emergency, Customer shall have online
     (computer) "view" access to the information contained in the Proprietary
     Systems, Third Party Proprietary Systems and documents (including Customer
     documents that are imaged by IMS) that relate to the Insurance
     Administration Services.

     Further, IMS shall also provide Customer with a daily feed of data that is
     related to the Insurance Administration Services.

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<PAGE>
     Customer shall also have physical access to any of IMS' records and
     information maintained by IMS and relating to the Insurance Administration
     Services, on any Business Day during normal business hours and upon twenty
     four (24) hours prior written notice to IMS by Customer for so long as IMS
     is required to maintain such records under this Agreement; provided,
     however, in the event that Customer requires physical access to the records
     and information under circumstances that would reasonably be described as
     an emergency (including any regulatory inquiry which requires a response in
     less than Twenty Four (24) hours) Customer shall have access to records and
     information maintained by IMS and relating to the Insurance Administration
     Services on any Business Day within twelve (12) hours of providing written
     notice to IMS.

     At Customer's expense, Customer will be permitted to copy any of its
     records and/or information maintained by IMS and relating to the Insurance
     Administration Services during normal business hours on any Business Day;
     provided, however, that the copying of records and/or information shall be
     subject to the limitations and restrictions contained in this Agreement.
     Upon written request by Customer, and at Customer's expense, IMS will
     promptly mail or fax to Customer, or make available for pick up, supporting
     documentation concerning any specific transaction processed by IMS under
     the terms of this Agreement.

     IMS will provide reasonably adequate workspace for Customer to conduct a
     review and otherwise copy, in accordance with the terms of this Agreement,
     any of Customer's records and/or information. Further, Customer or its
     representatives shall take precautions, when conducting performing such
     review and/or copying not to disrupt IMS' ongoing business activities.

B.   The recipient ("Recipient") of confidential data and/or information
     pursuant to this Agreement shall maintain the confidentiality of all data
     and/or information which is the property of the other party ("Disclosing
     Party"), whether originally supplied by the Disclosing Party, or whether
     generated by the Disclosing Party in the course of performing under this
     Agreement and which is directly accessible to the Recipient or is in
     possession of Recipient in its implementation, facilitation and/or
     performance of this Agreement. During any term of this Agreement, Recipient
     may acquire, know, or have within its possession, information (including,
     but not limited to, Technical Information) and/or data of the Disclosing
     Party concerning commercial and trade affairs, rating and underwriting
     rules and guidelines, the identity of clients, the identity of insureds and
     beneficiaries, claims, benefits, rates and Agents, financial information,
     the Proprietary System (as defined at Article VII (A) herein), the Third
     Party Proprietary System (as defined in Article VII (B) herein) and
     business practices of the Disclosing Party ("Confidential Information").
     Confidential Information which is provided in tangible form must be clearly
     marked "Confidential", "Proprietary" or the substantial equivalent thereof,
     or if orally disclosed must be clearly identified as "Confidential" or
     "Proprietary" at the time of the disclosure (except for IMS' Technical
     Information, the identity of Customer's clients, the identity of Customer's
     insureds and beneficiaries, claims, benefits, and Agents, which will be
     deemed "Confidential Information" under this Agreement, regardless of
     whether marked as such). Except as required by law, Recipient shall keep
     Disclosing Party's Confidential Information confidential and shall only use
     the Confidential Information in performing or facilitating the Insurance
     Administration Services under this Agreement. Recipient shall not disclose
     the Confidential Information without Disclosing Party's prior written
     permission except to Recipient's employees who require the information to
     perform or facilitate the Insurance Administration Services under this
     Agreement. Each party hereto, as a Recipient, warrants to the other that
     appropriate measures shall be taken by Recipient to safeguard the
     confidentiality of the Confidential Information, with a level of care at
     least equal to the level of care with which Recipient safeguards its own
     confidential or proprietary information. All employees, Agents or
     representatives of Recipient and any third parties who are given access to
     the Confidential Information shall be under obligation to Recipient to
     maintain such information in confidence.

                                       4
<PAGE>
     IMS and Customer agree that any Recipient shall have no obligation with
     respect to any information or data which:

     a)   is already rightfully known to Recipient through means other than
          Disclosing Party; or

     b)   is or becomes publicly known through no wrongful act of Recipient; or

     c)   is rightfully obtained by Recipient from a third-party without similar
          restriction and without breach of this Agreement; or

     d)   is independently developed by Recipient without breach of this
          Agreement.

     Disclosing Party shall retain title to all Confidential Information
     (whether tangible or intangible) delivered thereby pursuant to this
     Agreement. Recipient shall not copy, reproduce or use any Confidential
     Information without written authorization of Disclosing Party, except as
     may be reasonably required to accomplish the Insurance Administration
     Services under this Agreement. Upon written request of Disclosing Party
     Recipient shall promptly return, or destroy with specific written
     permission of the Disclosing Party, all tangible copies containing
     Confidential Information, except those copies kept in the regular course of
     business, or that are required to be kept pursuant to any state or federal
     administrative, regulatory or statutory mandates. The obligations under
     this Article V (B) shall survive the termination of this Agreement.
     Notwithstanding the foregoing, this Article V shall not prevent the
     disclosure of Confidential Information to the extent legally required by
     any court or regulatory entity having jurisdiction over the parties.

     For purposes of this Article V (B), Recipient and Disclosing Party shall
     include within their meaning all Agents of the Recipient and Disclosing
     Party.

ARTICLE VI.    EXPENSES AND FEES

A.   In consideration of IMS providing Insurance Administration Services
     described herein, Customer shall pay IMS, as applicable, the fees (the
     "Fees") specified in the pricing schedule attached hereto as "SCHEDULE B"
     and by reference herein made a part of this Agreement. The Fees may include
     an "Electronic" rate, for policies issued via "Electronic" means, and a
     "Manual" rate, for policies issued using a "Manual" process. A policy shall
     only be considered an "Electronic" policy if the data input necessary to
     issue the initial policy was input without the manual intervention of IMS.
     The "Electronic" rate shall also apply to all renewals of the "Electronic"
     policy whether the renewal is issued via an automated renewal process or a
     manual renewal process. A policy shall be considered a "Manual" policy if
     the data input necessary to issue the initial policy was input with the
     manual intervention of IMS. The "Manual" rate shall also apply to all
     renewals of the "Manual" policy whether the renewal is issued via an
     automated renewal process or a manual renewal process. The performance by
     IMS of any service or function that is outside of the scope of the
     Insurance Administration Services ("Additional Services") shall require the
     payment by Customer of additional consideration as mutually agreed between
     IMS and Customer. IMS shall not perform any Additional Services unless
     Customer request such Additional Services in writing or, if the expense of
     such Additional Services are estimated to be less than One Hundred Dollars
     ($100.00), unless Customer request such Additional Services either in
     writing or verbally.

B.   Customer shall reimburse IMS for necessary travel, living and out-of-pocket
     expenses reasonably incurred by IMS personnel in the performance the
     Insurance Administration Services under this Agreement specifically
     provided that all such expenses exceeding One Thousand Dollars ($1,000.00)
     are approved by Customer in advance and in writing.

C.   Subject to the terms of this Agreement, and provided a billing statement
     was timely provided, all Fees and expenses to be payable by Customer to IMS
     or any third party under this Agreement shall be paid to IMS on or before
     the last Business Day of the month immediately following the month in which
     Fees are owed. Customer's failure to pay all Fees and expenses when due
     shall be considered a material breach of this Agreement. Further, if
     Customer fails to pay any Fees and expenses due IMS as herein provided,
     Customer shall pay to IMS in addition to all sums otherwise due, interest
     which shall accrue at 1.5% per month on such delinquency from the date the
     Fees or

                                       5
<PAGE>
          expenses became past due. Failure or forbearance to exercise any of
          its rights and privileges hereunder shall not constitute the
          forfeiture or waiver of such rights and privileges on the part of IMS.
          IMS will calculate the Fees and expenses owed to IMS by Customer and
          will send a statement to Customer (containing detailed billing as to
          each Authorized Line of Business and all other related expenses)
          within two (2) weeks of the last day of the month for which Fees are
          owed, subject to Customer providing IMS with the necessary month end
          data that it will need to complete a detailed billing statement. If
          Customer fails to provide the necessary month end data that IMS will
          need to complete a detailed billing statement, then IMS may provide
          Customer with a reasonable estimate of Fees and expenses owed and
          Customer shall pay IMS in accordance with that estimate; with an
          adjustment for actual Fees and expenses made on the next month's
          billing statement.

D.        Six (6) months prior to the three (3) year anniversary of the
          Effective Date of this Agreement ("Demand Date"), either party
          may request that the Fees specified in SCHEDULE B be renegotiated.
          The party requesting that the Fees be renegotiated shall do so
          by written notice ("Demand Notice") to the other party and shall make
          such request on or before the Demand Date. If neither party makes a
          Demand Notice on or before the Demand Date, then SCHEDULE B shall
          remain in effect until the termination of the Initial Term.

          If a Demand Notice is made, the parties shall negotiate in good faith,
          which shall include the consideration of the following factors
          ("Re-negotiation Factors") when determining whether any change should
          be made to the Fees stated in SCHEDULE B: (i) whether the Fees are
          competitive with the rates currently being charged within the industry
          for like services; (ii) whether there has been any material increase
          or decrease in the number of policies being serviced or premium being
          processed under this Agreement; (iii) whether the quality of the
          Insurance Administration Services has diminished or improved since the
          Effective Date of this Agreement; (iv) whether IMS has consistently
          failed to meet or consistently met the Standards since Effective Date
          of this Agreement; (v) whether the Authorized Line of Business is
          being terminated or run off by Customer or is no longer being
          administered by IMS; and (vi) with regards specifically to WYO Flood,
          whether there has been in material increase or decrease in the
          Allowance or material change in the WYO Flood program (as both terms
          are defined in EXHIBIT II). NOTWITHSTANDING THE FOREGOING, THE PARTIES
          SHALL NOT BE UNDER ANY OBLIGATION TO REACH AN AGREEMENT ON
          RE-NEGOTIATED FEES, THEIR ONLY OBLIGATION SHALL BE TO NEGOTIATE IN
          GOOD FAITH. If the parties are unable to reach an agreement in their
          sole discretion with respects to the re-negotiation of Fees within
          ninety (90) days following the Demand Notice, then either party may
          terminate this Agreement by providing the other party ninety (90) days
          prior written notice. Until revised Fees are mutually agreed to in
          writing between the parties, Customer shall pay IMS, in accordance
          with SCHEDULE B then in effect. Any revised Fees mutually agreed to by
          the parties shall be reflected in a "Revised Schedule B" that shall be
          signed by both parties to this Agreement.

E.        The parties understand and agree that Fees specified in Section I of
          SCHEDULE B are based upon an aggregate policy in force ("PIF") count
          in excess of 388,570 policies for WYO Flood, in excess of 23,412
          policies for Auto, in excess of 108,207 policies for Homeowners. If
          during any three (3) month rolling period Customer's moving average
          PIF count for (a) WYO Flood policies fall below 291,427 policies or
          rises above 485,713 policies, (b) Auto policies fall below 17,559
          policies or rises above 29,265 policies, (c) Homeowners policies fall
          below 81,155 policies or rises above 135,259 policies, (individually,
          each shall be defined as a "PIF Material Variation") then either IMS
          or Customer may make a written request to the other party (the "PIF
          Material Variation Notice") to renegotiate Fees on Schedule B directly
          related to the Authorized Line of Business at any time after the PIF
          Material Variation for that Authorized Line of Business at any time
          after the PIF Material Variation for that Authorized Line of Business
          and during the term of this Agreement.

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<PAGE>
          If PIF Material Variation Notice is made, the parties shall negotiate
          in good faith, which shall include the consideration of the
          Re-negotiation Factors when determining whether any change should be
          made to the Fees stated in SCHEDULE B. NOTWITHSTANDING THE FOREGOING,
          THE PARTIES SHALL NOT BE UNDER ANY OBLIGATION TO REACH AN AGREEMENT ON
          RE-NEGOTIATED FEES, THEIR ONLY OBLIGATION SHALL BE TO NEGOTIATE IN
          GOOD FAITH. If the parties are unable to reach an agreement in their
          sole discretion with respects to the re-negotiation of Fees within
          ninety (90) days following the PIF Material Variation Notice, then
          with regards to any PIF Material Variation arising from a certain
          Authorized Line of Business, the party making the PIF Material
          Variation Notice may eliminate that Authorized Line of Business from
          the Agreement; provided, however, such elimination of that Authorized
          Line of Business shall not effect the validity of any remaining
          portion of the Agreement which shall remain in full force and effect
          as if the Agreement had been executed with the eliminated portion
          thereof excluded. Until revised Fees are mutually agreed to in writing
          between the parties, or until any Authorized Line of Business is
          eliminated from the Agreement, Customer shall pay IMS in accordance
          with SCHEDULE B then in effect. Any revised Fees mutually agreed to by
          the parties shall be reflected in a "Revised Schedule B" that shall be
          signed by both parties to this Agreement.

ARTICLE VII. LICENSE, TRADE SECRET AND PROPRIETARY RIGHTS

A.        IMS from time to time may use its own proprietary computer software
          products and account servicing methods and procedures ("Proprietary
          System"), which may be identified, described or referenced in EXHIBIT
          I and EXHIBIT II hereto, in the performance of the Insurance
          Administration Services. During any term of this Agreement, IMS grants
          a personal, non-transferable, non-assignable, non-exclusive license to
          Customer to use portions of the Proprietary System as necessary for
          IMS to perform the Insurance Administration Services under this
          Agreement. Further, no provision within this Agreement shall be
          interpreted as prohibiting IMS from selling or licensing its
          Proprietary System to any other customer or prospective customer of
          IMS; provided, however, Customer's license is not interrupted or
          diminished and so long as Customer's Confidential Information is not
          disclosed.

B.        IMS, from time to time, may also use proprietary third party computer
          software products and third party account servicing methods and
          procedures ("Third Party Proprietary System"), which may be
          identified, described or referenced in EXHIBIT I and EXHIBIT II in the
          performance of the Insurance Administration Services. No provision
          within this Agreement shall be interpreted as prohibiting IMS or the
          Third Party Proprietary System vendor from selling or licensing the
          Third Party Proprietary System, or modifications and enhancements to
          the Third Party Proprietary System, to any other customer or
          prospective customer of IMS, so long as Customer's Confidential
          Information is not disclosed.

C.        Other than the limited rights to use the Proprietary System and the
          Third Party Proprietary System (as provided in Article VII (A) and (B)
          above), this Agreement grants to Customer no right to possess or
          reproduce, download, reverse engineer, or obtain any other interest
          in, the Proprietary System or the Third Party Proprietary System, or
          their specifications in any tangible or intangible medium. Unless
          Customer already owns, has in its own right already individually
          licensed, or subsequently owns or licenses the Proprietary System or
          Third Party Proprietary System, Customer may not mortgage,
          hypothecate, sell, assign, pledge, lease, transfer, license, or
          sublicense the Proprietary System or the Third Party Proprietary
          System, nor allow any person, firm, entity or corporation to transmit,
          copy, reproduce, download, reverse engineer, or obtain any other
          interest in the Proprietary System or the Third Party Proprietary
          System, or their specifications in whole or in part (except in
          accordance with the terms of Customer's ownership interest in or
          license of the Proprietary System or Third Party Proprietary System).
          In the event Customer shall come into possession of any source or
          object code associated with the Proprietary System or the Third Party
          Proprietary System, that is not already owned or not already
          individually licensed or sub-licensed to Customer, Customer shall
          immediately notify IMS and return the source or object code associated
          with Proprietary System or the Third Party Proprietary System in its
          possession and all copies of any kind thereof to IMS.

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<PAGE>
D.   Unless Customer already owns, has individually licensed, or subsequently
     owns or licenses the Proprietary System or Third Party Proprietary System,
     Customer covenants and agrees not to disclose or otherwise make the
     Proprietary System or the Third Party Proprietary System available to any
     person other than employees, insurance sales agents ("Agents") or
     representatives of the Customer required to have access or use of the
     Proprietary System or the Third Party Proprietary System to facilitate IMS'
     or Customer's performance under this Agreement. Customer agrees to obligate
     each such employee, Agents, or representative to a level of care sufficient
     to protect the Proprietary System and the Third Party Proprietary System
     from unauthorized disclosure.

E.   Notwithstanding anything to the foregoing, Customer shall in no way be
     prohibited from prospectively owning or licensing the Proprietary System or
     the Third Party Proprietary System so long as the  owner of the Proprietary
     System or Third Party Proprietary System is willing to sell or license the
     system to Customer. The obligations of Customer under this Article VII
     shall survive termination of this Agreement, regardless of the reason for
     termination.

ARTICLE VIII. TERMINATION

A.   Following the Initial Term, either party may terminate this Agreement, for
     any reason or for no reason, upon ninety (90) days prior written notice to
     the other party of its intent to terminate those Agreement either at the
     end of the Initial Term or any time thereafter.

B.   Notwithstanding the foregoing paragraph (A), this Agreement shall also
     terminate:

     1)   at the election of the Customer, upon written notice to IMS, if IMS
     becomes insolvent, if it makes an assignment for the benefit of its
     creditors, if a petition for relief under the United States Bankruptcy Code
     is filed by or against it and it is not dismissed within thirty (30) days
     of being filed, or if a trustee, receiver or other custodian of its assets
     is appointed; or

     2)   at the election of IMS, upon written notice to Customer, if Customer
     becomes insolvent, if it makes an assignment for the benefit of its
     creditors, if a petition for relief under the United States Bankruptcy Code
     is filed by or against it and it is not dismissed within thirty (30) days
     of being filed, or if a trustee, receiver or other custodian of its assets
     is appointed (including, but not limited to, any proceeding pursuant to any
     state or federal action governing insurer solvency); or

     3)   at the election of the Customer, if IMS materially breaches any
     provision of this Agreement and fails to cure such breach within thirty
     (30) days after written notice thereof is given to IMS by the Customer; or

     4)   at the election of IMS, if Customer materially breaches any provision
     of this Agreement and fails to cure such breach within thirty (30) days
     after written notice thereof is given to Customer by IMS; or

     The initiation under this Agreement of any dispute resolution procedure
     shall not prevent a party from terminating this Agreement in accordance
     with this Article VIII.

C.   On expiration or termination of this Agreement, IMS shall immediately
     return to Customer all open and closed claim files, and all of Customer's
     Confidential Information, in IMS' possession and related to the Insurance
     Administration Services provided by IMS during the term of this Agreement,
     time being of the essence. Customer shall do the same, relative to IMS'
     Confidential Information, and shall cause Customer's Agents and
     representatives (including, but not limited to, any third party given
     access to the Confidential Information) to do the same relative to IMS'
     Confidential Information. Customer shall pay IMS (in accordance with
     SCHEDULE B then in effect) for any and all Fees and third party fees due
     IMS for Insurance Administration Services performed pursuant to this
     Agreement. IMS AND CUSTOMER SHALL COOPERATE IN ANY TRANSITION PERIOD DURING
     THE WIND-UP OF INSURANCE ADMINISTRATION SERVICES PROVIDED CUSTOMER UNDER
     THIS

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     AGREEMENT; PROVIDED, HOWEVER, THAT UPON TERMINATION OF THIS AGREEMENT
     CUSTOMER SHALL BECOME SOLELY ACCOUNTABLE AND SHALL ASSUME ALL
     RESPONSIBILITY OF ANY PENDING CLAIM FILES PREVIOUSLY ADMINISTERED BY IMS
     UNDER THIS AGREEMENT EXCEPT FOR MATTERS OCCURRING BETWEEN THE EFFECTIVE
     DATE AND THE TERMINATION DATE OF THIS AGREEMENT RELATING TO WILLFUL
     MISCONDUCT OR GROSS NEGLIGENCE OF IMS (INCLUDING ITS OFFICERS, DIRECTORS,
     EMPLOYEES AND AGENTS). If Customer requires assistance in converting
     Customer's data to a new format, or requires assistance from IMS relative
     to Customer's transition to an alternative insurance administration
     arrangement, then IMS shall provide such services at the then current rates
     charged by IMS for the services specified in SCHEDULE B; PROVIDED, HOWEVER,
     IN THE EVENT SUCH DATA IS NOT KEPT BY IMS IN A FORMAT PREVIOUSLY AGREED TO
     IN WRITING BY CUSTOMER AND IMS, THEN IMS SHALL CONVERT ALL SUCH DATA INTO A
     FORMAT REASONABLY ACCEPTABLE TO CUSTOMER AT IMS'S SOLE COST AND EXPENSE.
     This obligations under this Paragraph (C) shall survive any termination of
     this Agreement.

ARTICLE IX.    WARRANTIES AND COVENANTS BY IMS

IMS covenants that IMS will comply in all respects with the law of the state or
states covered by this Agreement and with the rules and regulations of all
regulatory authorities having jurisdiction over IMS' activities, and shall,
whenever necessary, maintain at its own expense all required licenses to
transact business in such states. IMS warrants to Customer that (a) IMS owns or
otherwise has the right to use the Proprietary System and the right to use the
Third Party Proprietary System used to perform the Insurance Administration
Services, and the rights to such Proprietary System granted hereunder will not
knowingly infringe upon a third party's copyright or patent rights; (b) IMS is
duly authorized to transact the business of servicing insurance companies; and
(c) the express warranties provided here and elsewhere in this Agreement are
IMS' only warranties and no other warranty, express or implied, including any
warranty of merchantability, fitness or fitness for a particular purpose, will
apply to the provision of Insurance Administration Services under this
Agreement.

ARTICLE X. LIABILITY, LIMIT OF LIABILITY, INDEMNITIES AND REMEDIES

A.   The parties shall assume the following obligations and liabilities as
     specified below and subject to the limitations on liability set forth in
     Article X, (B) below:

     1)   IMS shall indemnify, defend and hold harmless Customer, its officers,
     directors, employees and controlling persons from any liability, cost,
     loss, fine, penalty, claim, demand, damage or expense, including reasonable
     attorneys' fees, incurred directly as a result of any material breach of
     IMS' obligations under this Agreement or the materials breach of any
     representation or warranty made by IMS to Customer pursuant hereto;

     2)  Customer shall indemnify, defend and hold harmless IMS, its officers,
     directors, employees and controlling persons from any liability, cost,
     loss, fine, penalty, claim, demand, damage or expense, including reasonable
     attorney's fees, incurred directly as a result of any material breach of
     Customer's obligations under this Agreement or the material breach of any
     representation or warranty made by Customer to IMS pursuant hereto;

B.   There will be no limit of liability with regards to the following items:
     (i) liabilities resulting from Fees and expenses payable to IMS under
     Article VI of this Agreement; (ii) acts of fraud, gross negligence or
     willful misconduct; (iii) violations of Article VII of this Agreement; and
     (iv) liabilities that would fall under IMS' E&O insurance coverage.

C.   Except for those items identified under Paragraph (B) above, each party's
     maximum liability ("Maximum Liability") to the other party for any cause
     whatsoever, during any one calendar year shall be limited to damages
     incurred by that party and shall not exceed the aggregate amount of Fees
     paid by the Customer under Schedule B of this Agreement for the three (3)
     months immediately preceding the breach or cause of liability.

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<PAGE>
D.   All parties agree to promptly give the others notice upon being notified or
     becoming aware of any and all allegations or claims, which could give rise
     to a claim under this Article.

E.   The obligations of the parties under this Article shall survive termination
     of this Agreement, regardless of the reason for termination.

ARTICLE XI.    GENERAL AGREEMENTS

A.   The parties shall not be liable or deemed to be in default hereunder for
     any delay or failure in performance under this Agreement, interruption of
     the Insurance Administration Services resulting, or failure to meet the
     Standards referenced in Article III, directly from unforeseeable, natural
     acts (including but not limited to weather catastrophes such as flood,
     hurricanes, tornadoes, windstorms, ice storms, blizzards and hail storms),
     civil or military authority, labor disputes or any similar cause beyond the
     reasonable control of the parties, so long as IMS follows a disaster
     recovery plan approved by Customer (which recovery plan must be presented
     to Customer for review on annual basis), and provided further that IMS
     makes every commercially reasonable effort to perform under this Agreement
     once such occurrence has ceased.

B.   Any and all notices, designations, consents, offers, acceptances, or any
     other communication provided for herein shall be given in writing by hand
     delivery, by overnight carrier, by registered or certified mail or by
     facsimile transmission and shall be addressed as follows:

     If to Customer to:

     360 Central Avenue
     17th Floor
     St. Petersburg, FL 33733
     Attn: Robert G. Menke, President
     FAX (727) 823-6518

     If to IMS to:

     801 94th Avenue North
     St. Petersburg, FL
                        -----------
     Attn: David M. Howard, President
     FAX (727) 803-2076

     Notices sent by hand delivery shall be deemed effective on the date of
     actual hand delivery. Notices sent by overnight carrier shall be deemed
     effective on the next Business Day after being placed into the hands of the
     overnight carrier. Notices sent by registered or certified mail shall be
     deemed effective on the fifth Business Day after being deposited into the
     post office. Notices sent by facsimile transmission shall be deemed to be
     effective on the day when sent if sent prior to 4:30 p.m. (the time being
     determined by the time zone of the recipient), otherwise they shall be
     deemed effective on the next Business Day.

C.   This Agreement, and the exhibits, schedules and appendices attached hereto,
     contain all of the prior oral and/or previously written agreements,
     representations, and arrangements between the parties hereto with regards
     to the Insurance Administration Services. There are no representations or
     warranties other than those set forth herein. No change or modification of
     this Agreement, including the exhibits, schedules and appendices hereto,
     shall be valid unless the same shall be in writing and signed by all of the
     parties hereto. All exhibits, schedules, appendices, addendum of any kind,
     or attachments to this Agreement shall be made a part of this Agreement and
     shall be subject to all terms and conditions of this Agreement.

D.   Words of a gender used in this Agreement shall be held to include any other
     gender, the words in a singular number held to include the plural, when the
     sentence so requires. Article headings are

                                       10
<PAGE>
     intended for purposes of description only and shall not be used for
     purposes of interpretation of this Agreement.

E.   Should any part of this Agreement for any reason be declared invalid, such
     decision shall not effect the validity of any remaining portion, which
     remaining portion shall remain in full force and effect as if the Agreement
     had been executed with the invalid portion thereof eliminated. It is,
     therefore, declared the intention of the parties hereto that each of them
     will have executed the remaining portion of this Agreement without
     including therein any such part, parts or portion which may, for any
     reason, be hereafter declared void.

F.   If either party should bring an action alleging breach of this Agreement or
     seeking to enforce, rescind, renounce, declare, void or terminate this
     Agreement or any provisions thereof (in compliance with the Dispute
     Resolution Procedures detailed in Section XII of this Agreement) the
     prevailing party shall be entitled to recover all of its legal expenses,
     including reasonable attorneys' fees and costs (including legal expenses
     for any appeals taken), and to have the same awarded as part of the
     judgment in the proceeding in which such legal expenses and attorneys' fees
     were incurred. The venue for any action related to this Agreement shall be
     in Pinellas County, Florida. This Agreement and all matters arising
     hereunder shall be governed by and determined in accordance with the laws
     of the State of Florida without giving effect to any choice of law
     provisions. The obligations of the parties under this Paragraph F shall
     survive termination of this Agreement, regardless of the reason for
     termination.

G.   Neither IMS nor Customer shall assign this Agreement or any of its rights
     hereunder without the prior written consent of the non-assigning party.

H.   The parties agree not to disclose the terms and conditions of this
     Agreement to any third party, except (i) as required in the normal conduct
     of Customer's business, or (ii) as required by law or regulation including,
     without limitation, any Federal securities law, or regulation.

I.   This Agreement shall be for the benefit of, and shall be binding upon, the
     parties and their respective heirs, personal representatives, executors,
     legal representatives, successors and assigns.

ARTICLE XII. DISPUTE RESOLUTION PROCEDURES

A.   The parties will attempt in good faith to promptly resolve any material
     dispute regarding this Agreement by negotiations between senior management
     ("Senior Management") of the parties. Senior Management of each party will
     meet within ten (10) calendar days of notice ("Notice of Dispute") by a
     party of the existence of a material dispute, at a mutually agreed time and
     place, to resolve the material dispute. At the meeting of Senior
     Management, to be attended by an individual from each party who shall have
     authority to settle the dispute, each party shall verbally state the issues
     in the material dispute and its position. If the material dispute is not
     resolved to the mutual satisfaction of the parties within seven (7)
     calendar days of the meeting of Senior Management, then the parties may
     attempt to resolve the controversy using mediation.

B.   If the matter has not been resolved pursuant to the aforesaid mediation
     procedure within thirty (30) calendar days of the issuance of a party of a
     Notice of Dispute, or if either party will not participate in mediation,
     then either party may initiate arbitration upon fifteen (15) calendar days
     written notice to the other party. Notwithstanding the foregoing, all
     deadlines specified above may be extended upon mutual written agreement of
     the parties.

C.   Except for the right of either party to apply to a court of competent
     jurisdiction for a temporary restraining order, preliminary injunction or
     other equitable relief to preserve the status quo, all claims, disputes,
     controversies and other matters relating to breach of this Agreement which
     cannot be resolved by the parties shall be settled by arbitration in
     accordance with this Agreement.

D.   Notice requesting arbitration ("Arbitration Notice"), or any other notice
     made in connection

                                       11
<PAGE>
     therewith, shall be made in writing by one party and sent by certified
     mail, return receipt requested, to the other party. The Arbitration Notice
     shall state in particular all issues to be resolved in the view of the
     complaining party, shall appoint the arbitrator selected by the complaining
     party and shall set a tentative date for the arbitration hearing, which
     date shall be no sooner than forty-five (45) calendar days and no later
     than ninety (90) calendar days from the date that the Arbitration Notice is
     mailed. Within twenty (20) calendar days of receipt of the complaining
     party's Arbitration Notice, the respondent shall notify the complaining
     party of the name of its appointed arbitrator. When the two arbitrators
     have been appointed, they shall agree on a third independent arbitrator and
     shall appoint such person by written notice to the parties signed by both
     arbitrators within thirty (30) calendar days from the date of the
     appointment of the second arbitrator. If the two arbitrators fail to agree
     upon the appointment of an independent arbitrator at the end of thirty (30)
     calendar days following the appointment of the second arbitrator, then the
     independent arbitrator shall be appointed by the American Arbitration
     Association ("AAA"), or its successor, in accordance with its then
     prevailing commercial arbitration rules then in effect. The three (3)
     arbitrators shall constitute the arbitration board ("Arbitration Board").
     The parties agree that the location for conducting the arbitration,
     regardless of the party bringing the complaint, will be in Pinellas County,
     Florida.

E.   The members of the Arbitration Board shall be active or retired (i) lawyers
     or professionals familiar with insurance and/or (ii) active or former
     officers or management employees of insurance and/or data processing firms
     and/or software development companies. The person selected by the two
     respective arbitrators appointed by the parties shall be the umpire or
     chief arbitrator and must be a licensed attorney.

F.   Arbitration shall be conducted in accordance with the Commercial Rules of
     the AAA then in effect except as modified herein.

G.   The parties agree that all then current employees of each with information
     relevant to the dispute between the parties will be voluntarily produced,
     at the employer's expense, for all proper discovery and arbitration
     hearings.

H.   The cost of the arbitration relative to the arbitrators and the AAA
     ("Costs") shall be borne equally pending the arbitrators' award. Each party
     shall bear its own expenses for attorneys' fees. The prevailing party in
     any arbitration proceeding hereunder shall be entitled, in addition to such
     other relief as may be granted, to recover the portion of the Costs
     incurred by that party in connection with arbitration under this Agreement
     prior to the award.

I.   The parties agree that the Arbitration Board shall be required to render
     its decision in writing within thirty (30) calendar days of the conclusion
     of the arbitration proceedings, unless such time shall be extended by
     mutual written agreement of the parties.

J.   With respect to any matter brought before the Arbitration Board, the
     Arbitration Board shall make a decision having regard to the intentions of
     the parties, the terms of this Agreement, and custom and usage of the
     insurance industry. Such decisions shall be in writing and shall state the
     findings of fact and conclusions of law upon which the decision is based,
     provided that such decision may not (i) award consequential, punitive,
     special, incidental or exemplary damages, or (ii) unless specifically
     requested by a party pursuant to the terms of this Agreement, otherwise
     terminate this Agreement or any provisions thereof. The decision shall be
     based exclusively upon the evidence presented by the parties at a hearing
     in which evidence shall be allowed and such decision shall be final and
     binding upon all parties to the proceeding and may be entered by either
     party in any court having competent jurisdiction.

K.   The obligations of the parties under this Section XII shall survive
     termination of this Agreement, regardless of the reason for termination.

                                       12
<PAGE>
ARTICLE XIII - CHANGE IN LAW; REGULATORY APPROVAL

In the event of a change in any law, regulation, rule or governmental
interpretation thereof by any governmental body having jurisdiction over the
parties, or in the event of an order by any court having jurisdiction over the
parties causes this Agreement or any provision hereof to be in non-compliance
with any applicable law, rule, order or any other regulation, then this
Agreement may be (a) modified to address such non-compliance by mutual
agreement of the parties, or (b) so long as the modification to this Agreement
to correct such non-compliance ("Required Modification") does not significantly
and materially alter the economic terms of this Agreement, modified to address
such non-compliance but only to the extent necessary to make the Agreement
compliant, or (c) in the event Required Modification significantly and
materially alters the economic terms of this Agreement and the parties can not
mutually agree to a modification hereof, terminated by either party upon
providing the other party with one hundred and eighty (180) days prior written
notice. Provided, however, if (i) terminating this Agreement upon one hundred
and eighty (180) days prior written notice would subject either party to
material fine or other material penalty by law, (ii) the governmental or
regulatory body mandates that the Agreement be terminated prior to the
prescribed one hundred and eighty (180) day notice period, or (iii) failure to
terminate this Agreement within thirty (30) days will significantly and
materially impact the financial viability of Customer or IMS, then this
Agreement may be terminated upon thirty (30) days prior written notice to the
other party.

To the extent required, this Agreement shall be subject to approval by
governmental agencies having jurisdiction over Customer and Customer's business.

ARTICLE XIV - CUSTOMER'S BUSINESS

This Agreement shall not be deemed to require Customer to offer or otherwise
participate in any particular business or lines of business or to provide any
business within any particular jurisdiction, nor will Customer's relationship
with IMS be deemed to be exclusive. Notwithstanding the foregoing, Customer
shall notify IMS prior to negotiating any definitive documents with any party
that is not a party to this Agreement ("Third Party") for the sale of any
material portion of any Authorized Line of Business. During the Initial Term of
this Agreement and as a condition to the sale of all or substantially all the
WYO Flood, Homeowners or Auto Authorized Line of Business during any rolling
twelve (12) month period, Customer shall require any Third Party or parties
purchasing all or substantially all the WYO Flood, Homeowners or Auto
Authorized Line of Business during any rolling twelve (12) month period to use
IMS exclusively for any Insurance Administration Services provided for in this
Agreement that are to be performed relative to the Authorized Line of Business.
Notwithstanding the foregoing, if Customer terminates or runs off any
Authorized Line of Business during any rolling twelve (12) month period,
without selling all or substantially all of that Authorized Line of Business to
any Third Party within that same rolling twelve (12) month period, Customer
shall have no liability or obligation to IMS for procuring Insurance
Administration Services from IMS for that terminated or run off Authorized Line
of Business. For purposes of this Article, the term "substantially all" shall
mean eighty percent (80%) or more of the aggregate amount of any Authorized
Line of Business as measured from the first day of the applicable rolling
twelve (12) month period.

ARTICLE XV - APPROVAL BY RESPECTIVE BOARD OF DIRECTORS

This Agreement, once signed by all parties hereto, shall be submitted to each
party's respective Board of Directors ("Company Board"), or any Company Board
committee ("Committee") that has authority to approve this Agreement, for
approval. Such written Company Board or Committee approval must be obtained
within thirty (30) days following the execution date of the last party to
execute this Agreement. In the event that any party's respective Company Board
or Committee has not approved this Agreement in writing (and delivered such
approval to the other party) within such thirty (30) day period, then the other
party may elect, at its sole option, to (a) extend such period in which to
obtain Company Board or Committee approval or (b) terminate this Agreement by
providing written notice to the other party hereto.

                                       13
<PAGE>
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Agreement as of the date and year first set
forth above.

-----------------------------------------------------------------------------
"IMS"

INSURANCE MANAGEMENT SOLUTIONS, INC.
-----------------------------------------------------------------------------

By: /s/ D. M. Howard               D. M. Howard
    --------------------------

As its: Pres/CEO                   Pres/CEO       Date: 11/26/01
       -----------------------                         ------------

-----------------------------------------------------------------------------
"CUSTOMER"

-----------------------------------------------------------------------------

BANKERS INSURANCE COMPANY

By:  /s/ Robert G. Menke           Robert G. Menke
    --------------------------

As its:  President                 President      Date: 11/21/2001
       -----------------------                         -------------

BANKERS SECURITY INSURANCE COMPANY

By:  /s/ Robert G. Menke           Robert G. Menke
    --------------------------

As its: President                  President      Date: 11/21/2001
       -----------------------                         -------------
-----------------------------------------------------------------------------

FIRST COMMUNITY INSURANCE COMPANY

By: /s/ Robert G. Menke            Robert G. Menke
    --------------------------

As its: President                  President      Date: 11/21/2001
       -----------------------                         -------------
-----------------------------------------------------------------------------

SCHEDULES:

SCHEDULE "A" --     AUTHORIZED STATES AND INSURANCE PROGRAM
SCHEDULE "B" --     PRICING SCHEDULE

EXHIBITS:

EXHIBIT I --        INSURANCE ADMINISTRATION SERVICES (AT RISK LINES)

EXHIBIT II --       INSURANCE ADMINISTRATION SERVICES (WYO FLOOD)

EXHIBIT III         SERVICE LEVEL AGREEMENT

                                       14
<PAGE>
                                   SCHEDULE A
                    AUTHORIZED STATES AND INSURANCE PROGRAM

So long as Customer is providing such lines of business, IMS shall provide
Insurance Administration Services as described in EXHIBIT I and EXHIBIT II for
the following authorized line(s) of business ("Authorized Line of Business") in
the following state(s) ("Authorized States"):

1.   AUTHORIZED LINE OF BUSINESS:

     WYO Flood
     Excess Flood
     Automobile
     Homeowners
     Commercial
     Contract Surety
     Tenant Bond.

     Workers Compensation is not an Authorized Line of Business under this
     Agreement.

2.   AUTHORIZED STATES:

     With regards specifically to WYO Flood, Excess Flood, Auto and Homeowners:
     All states of the United States

     With regards specifically to Commercial:       See Appendix A attached

     With regards specifically to Contract Surety:  See Appendix A attached

     With regards specifically to Tenant Bond:      See Appendix A attached

                                       15
<PAGE>
                         Product Descriptions by State
                                   Appendix A

<Table>
<Caption>
------------------------------------------------------------------------------------------------------------------------------------
COMPANY  PRODUCT  SUBLINE  STATE  PRODUCT DESCRIPTION               SUBLINE DESCRIPTION             POLICY PROCESSING SYSTEM
------------------------------------------------------------------------------------------------------------------------------------
<S>      <C>      <C>      <C>    <C>                               <C>                             <C>
3000     BBOP              FL     Business Owners Program                                           Bankers On-Line/Monthend/Lawson
------------------------------------------------------------------------------------------------------------------------------------
3000     BOP               FL                                                                       Bankers On-Line/Monthend/Lawson
------------------------------------------------------------------------------------------------------------------------------------
3000     BOP      SPEC     FL                                       Special                         Coding Tickets/Monthend
------------------------------------------------------------------------------------------------------------------------------------
3000     DFI      DP01     FL                                                                       IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
3000     DFI      DP02     FL                                                                       IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
3000     DFI      DP03     FL                                                                       IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
3000     DFIP     DP01     FL     Depopulation                      DPI - Form 01                   IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
3000     DFIP     DP02     FL                                       DP02                            IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
3000     DFIP     DP03     FL                                       DP03                            IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
3000     DFSH     DP01     FL     Dwelling Fire Southern Heritage   DP01 - Form                     IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
3000     DFSH     DP02     FL                                       DP02 - Form                     IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
3000     DFSH     DP03     FL                                       DP03 - Form                     IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
3000     FLD      PREF     FL                                                                       IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
3000     FLD      RGLR     FL                                                                       IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
3000     FLD      RCBP     FL                                                                       IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
3000     FLD      MPPP     FL                                                                       IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
3000     HO       HO3      FL                                                                       IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
3000     HO       HO4      FL                                                                       IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
3000     HO       HO6      FL                                                                       IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
3000     HO       HO8      FL                                       HO Form 8                       IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
3000     HOP      HO3      FL                                       Depopulation - HO Form 3        IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
3000     HOP      HO4      FL                                       Depopulation - HO Form 4        IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
3000     HOP      HO6      FL                                       Depopulation - HO Form 6        IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
3000     HOP      HO8      FL                                       Depopulation - HO Form 8        IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
3000     HOSH     HO3      FL                                       Homeowners Southern Heritage    IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
3000     HOSH     HO4      FL                                                                       IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
3000     HOSH     HO6      FL                                                                       IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
</Table>

AA-Annual Auto           F+S-Fidelity + Surety                  IM-Inland Marine
BU-Burglary              FR-Fire + Allied Lines                DP-Personal Lines
BO-Business Owners       GLA-General Liability        MPA-Professional Liability
                               GS-Glass

                                       16

<PAGE>
                         Product Descriptions by State
                                   Appendix A

<Table>
<Caption>
------------------------------------------------------------------------------------------------------------------------------------
COMPANY  PRODUCT  SUBLINE  STATE                         PRODUCT DESCRIPTION      SUBLINE DESCRIPTION    POLICY PROCESSING SYSTEM
------------------------------------------------------------------------------------------------------------------------------------
<S>      <C>      <C>      <C>                           <C>                      <C>                    <C>
3000     HOSH     HO8      FL                                                                            IMSG Main On-Line/Monthend
------------------------------------------------------------------------------------------------------------------------------------
3000     NSAP     PP       FL                                                                            IMSG Main On-Line/Monthend
------------------------------------------------------------------------------------------------------------------------------------
3000     WIND              FL                            Wind Pool                                       Coding Tickets/Monthend
------------------------------------------------------------------------------------------------------------------------------------
4000     BBND              CO, MI, ND, NJ, PA, SD, TN                                                    Bail Bond/Month End/Lawson
------------------------------------------------------------------------------------------------------------------------------------
4000     CFIR     SPEC     AL, AR, FL, IN, MS, MO, TN                                                    Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
4000     CHTR     SPEC     AR, AZ, CA, FL, GA, IL, IN,   Chartered Boat Program   Special                Coding Tickets/Month End
                           KY, LA, ME, MO, MS, NC, NJ,
                           NV, NY, OR, SC, TN, UT, VA,
                           WA
------------------------------------------------------------------------------------------------------------------------------------
4000     CPP      SPEC     FL, GA                                                                        Coding Tickets/Monthend
------------------------------------------------------------------------------------------------------------------------------------
4000     CPPI              LA                            Credit Personal
                                                         Property Insurance
------------------------------------------------------------------------------------------------------------------------------------
4000     EL                FL, LA, OK                                                                    Coding Tickets/Monthend
------------------------------------------------------------------------------------------------------------------------------------
4000     FLD      PREF     AL, AK, AR, AZ, CO, CA, CT,
                           DC, DE, FL, GA, HI, IA, ID,
                           IL, IN, KS, KY, LA, MA, MD,
                           ME, MI, MN, MO, MS, MT, NC,
                           ND, NE, NH, NJ, NM, NV, NY,
                           OH, OK, OR, PA, RI, SC, SD,
                           TN, TX, UT, VA, VT, WA, WI,
                           WV, WY                                                                        IMSG Main On-Line/Monthend
------------------------------------------------------------------------------------------------------------------------------------
4000     FLD      CNDO     AK, AL, AR, AZ, CA, CO, CT,                            Condo
                           DC, DE, FL, GA, HI, IA, ID,
                           IL, IN, KS, KY, LA, MA, MD,
                           ME, MI, MN, MO, MS, MT, NC,
                           ND, NE, NH, NJ, NM, NV, NY,
                           OH, OK, OR, PA, RI, SC, SD,
                           TN, TX, UT, VA, VT, WA, WI,
                           WV, WY                                                                        IMSG Main On-Line Month End
------------------------------------------------------------------------------------------------------------------------------------
</Table>

AA-Annual Auto           F+S-Fidelity + Surety                  IM-Inland Marine
BU-Burglary              FR-Fire + Allied Lines                DP-Personal Lines
BO-Business Owners       GLA-General Liability        MPA-Professional Liability
                               GS-Glass

                                       17

<PAGE>
                         Product Descriptions by State
                                   Appendix A

<Table>
<Caption>
------------------------------------------------------------------------------------------------------------------------------------
COMPANY  PRODUCT  SUBLINE  STATE                        PRODUCT DESCRIPTION  SUBLINE DESCRIPTION    POLICY PROCESSING SYSTEM
------------------------------------------------------------------------------------------------------------------------------------
<S>      <C>      <C>      <C>                          <C>                  <C>                    <C>
4000     FLD      MPPP     AL, AK, AR, AZ, CA, CO, CT,                       Mortgage Portfolio
                           DC, DE, FL, GA, HI, IA, ID,                       Protection Policies
                           IL, IN, KS, KY, LA, MA, MD,
                           ME, MI, MN, MO, MS, MT, NC,
                           ND, NE, NH, NJ, NM, NV, NY,
                           OH, OK, OR, PA, RI, SC, SD,
                           TN, TX, UT, VA, VT, WA, WI,
                           WY                                                                       IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
4000     FLD      RGLR     AL, AK, AR, AZ, CA, CO, CT,                       Regular
                           DC, DE, FL, GA, HI, IA, ID,
                           IL, IN, KS, KY, LA, MA, MD,
                           ME, MI, MN, MO, MS, MT, NC,
                           ND, NE, NH, NJ, NM, NV, NY,
                           OH, OK, OR, PA, RI, SC, SD,
                           TN, TX, UT, VA, VT, WA, WI,
                           WY                                                                       IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
4000     FLD      RCBP     AL, AK, AR, AZ, CA, CO, CT,
                           DC, DE, FL, GA, HI, IA, ID,
                           IL, IN, KS, KY, LA, MA, MD,
                           ME, MI, MN, MO, MS, MT, NC,
                           ND, NE, NH, NJ, NM, NV, NY,
                           OH, OK, OR, PA, RI, SC, SD,
                           TN, TX, UT, VA, VT, WA, WI,
                           WY                                                                       IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
4000     FLDX     RGLR     AL, AZ, CA, CT, DE, FL, GA,
                           HI, IL, LA, MA, MD, MS, NC,
                           NH, NJ, NV, NY, OH, OR, PA,
                           RI, SC, TX, VA                                                           Coding Tickets/Monthend
------------------------------------------------------------------------------------------------------------------------------------
</Table>

AA-Annual Auto           F+S-Fidelity + Surety                  IM-Inland Marine
BU-Burglary              FR-Fire + Allied Lines                DP-Personal Lines
BO-Business Owners       GLA-General Liability        MPA-Professional Liability
                               GS-Glass

                                       18

<PAGE>
                         Product Descriptions by State
                                   Appendix A

<Table>
<Caption>
------------------------------------------------------------------------------------------------------------------------------------
COMPANY  PRODUCT  SUBLINE  STATE                         PRODUCT DESCRIPTION    SUBLINE DESCRIPTION      POLICY PROCESSING SYSTEM
------------------------------------------------------------------------------------------------------------------------------------
<S>      <C>      <C>      <C>                           <C>                    <C>                      <C>
4000     GL       SPEC     FL, GA, IN, NH, NY, OH, SC,
                           TN, TX                                                                        Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
4000     GL       GAP      FL, GA                                                                        Coding Tickets/Monthend
------------------------------------------------------------------------------------------------------------------------------------
4000     GL       ETCH     GA                                                                            Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
4000     GL       SCGD     FL                                                   Security Guard Program   Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
4000     GL       AGI      IL                                                                            Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
4000     HO       HO3      FL                                                                            IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
4000     HO       HO4      FL                                                                            IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
4000     HO       HO6      FL                                                                            IMSG Main On-Line Month End
------------------------------------------------------------------------------------------------------------------------------------
4000     HO       HO8      FL                                                                            IMSG Main On-Line Month End
------------------------------------------------------------------------------------------------------------------------------------
4000     INLM     SPEC     AL, AR, AZ, FL, GA, IN, MO,
                           MS, NC, NH, NJ, NY, PA, TN,
                           TX                                                                            Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
4000     LENS              AL, AK, AR, AZ, CA, CO, CT,   Lensurance
                           DC, DE, FL, GA, HI, IA, ID,
                           IL, IN, KS, KY, LA, MA, MD,
                           ME, MI, MN, MO, MS, MT, NC,
                           ND, NE, NH, NJ, NM, NV, NY,
                           OH, OK, OR, PA, RI, SC, SD,
                           TN, TX, UT, VA, VT, WA, WI,
                           WY
------------------------------------------------------------------------------------------------------------------------------------
4000     MCNT     SPEC     AR, AZ, CA, FL, GA, IL, IN,   Marine Contractors     Special
                           KY, LA, ME, MO, MS, NC, NJ,   Program
                           NV, NY, OR, SC, TN, UT, VA,
                           WA                                                                            Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
4000     MOLL     SPEC     AR, AZ, CA, FL, GA, IL, IN,   Marine Owners Legal    Special
                           KY, LA, ME, MO, MS, NC, NJ,   Liability
                           NV, NY, OR, SC, TN, UT, VA,
                           WA                                                                            Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
</Table>

AA-Annual Auto           F+S-Fidelity + Surety                  IM-Inland Marine
BU-Burglary              FR-Fire + Allied Lines                DP-Personal Lines
BO-Business Owners       GLA-General Liability        MPA-Professional Liability
                               GS-Glass

                                       19

<PAGE>
                         Product Descriptions by State
                                   Appendix A

<Table>
<Caption>
------------------------------------------------------------------------------------------------------------------------------------
COMPANY  PRODUCT  SUBLINE  STATE                         PRODUCT DESCRIPTION      SUBLINE DESCRIPTION    POLICY PROCESSING SYSTEM
------------------------------------------------------------------------------------------------------------------------------------
<S>      <C>      <C>      <C>                           <C>                      <C>                    <C>
4000     NACA     PP       CA                            NSAP General Agent       Private Passenger      Tape/Month End
                                                         Program California
------------------------------------------------------------------------------------------------------------------------------------
4000     NACA              CA                            GA Program California                           Tape/Month End
                                                         - Manual
------------------------------------------------------------------------------------------------------------------------------------
4000     NAGA     PP       CA, OR                                                                        Tape/Month End
------------------------------------------------------------------------------------------------------------------------------------
4000     NAGA              OR                            General Agent Program                           Tape/Month End
                                                         - manual
------------------------------------------------------------------------------------------------------------------------------------
4000     OAP               FL, OH                        Occupational Accident                           Coding Tickets/Month End
                                                         Program
------------------------------------------------------------------------------------------------------------------------------------
4000     OMNI              FL, NY                                                                        Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
4000     SAU      SPEC     FL, KY                                                                        Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
4000     SMBT     SPEC     AR, AZ, CA, FL, GA, IL, IN,   Small Boat Program       Special
                           KY, LA, ME, MO, MS, NC, NJ,
                           NV, NY, OR, SC, TN, UT, VA,
                           WA                                                                            Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
4000     SRTY              AL, AZ, CO, FL, GA, IA, ID,   Surety/Fidelity Bonds
                           IL, IN, KS, KY, MA, MD, MI,
                           MN, MO, MS, MT, NC, ND, NE,
                           NH, NJ, NV, NY, OH, OK, RI,
                           SC, SD, TX, UT, VA, VT, WA,
                           WI, WV, WY                                                                    Access DB/Coding Tickets/
                                                                                                         Month End
------------------------------------------------------------------------------------------------------------------------------------
4000     SRTY     SPEC     DC, FL, GA, IL, NC, NY, SC,                            Special
                           VA                                                                            Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
4000     TBND     OPT3     DC, FL, GA, IL, NC, NY, SC,   Tennant Bond             Option 3
                           TN, VA, WA                                                                    Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
4000     TBND     OPT2     DC, FL, GA, IL, NC, NY, SC,                            Option 2
                           TN, VA, WA                                                                    Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
4000     TBND     OPT1     DC, FL, GA, IL, NC, NY, SC,                            Option 1
                           TN, VA, WA                                                                    Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
4000     TOW      SPEC     AL, AR, FL, GA, IN, MO, MS,   Tow Truck Program
                           TN                                                                            Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
4000     UMBR     SPEC     FL, TX                                                                        Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
4000     WIND              FL                                                                            Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
</Table>

AA-Annual Auto           F+S-Fidelity + Surety                  IM-Inland Marine
BU-Burglary              FR-Fire + Allied Lines                DP-Personal Lines
BO-Business Owners       GLA-General Liability        MPA-Professional Liability
                               GS-Glass

                                       20

<PAGE>
                         Product Descriptions by State
                                   Appendix A

<Table>
<Caption>
------------------------------------------------------------------------------------------------------------------------------------
COMPANY  PRODUCT  SUBLINE  STATE                         PRODUCT DESCRIPTION      SUBLINE DESCRIPTION    POLICY PROCESSING SYSTEM
------------------------------------------------------------------------------------------------------------------------------------
<S>      <C>      <C>      <C>                           <C>                      <C>                    <C>
4000     YAHT     SPEC     AR, AZ, CA, FL, GA, IL, IN,   Yacht Program            Special
                           KY, LA, ME, MO, MS, NC, NJ,
                           NV, NY, OR, SC, TN, UT, VA,
                           WA                                                                            Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     AECO              FL                            Air Conditioning/                               Coding Tickets/Month End
                                                         Electrical Contractors
------------------------------------------------------------------------------------------------------------------------------------
5000     APD      PP       FL                            Auto Physical Damage      Private Passenger     IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     ASP      PREF     FL                            Auto Service Program      AA                    Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     ASP      NSTD     FL                                                      B                     Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     ASP      STD      FL                                                      A                     Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     B&M               FL                            Boiler & Machinery                              Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     BBND              AL, AZ, CA, CT, DC, DE, FL,   Bail Bonds
                           GA, HI, IA, ID, IN, KS, LA,
                           MD, MO, MS, MT, NC, NH, NM,
                           NY, NV, OH, PA, RI, SC, SD,
                           TN, TX, UT, VA, VT, WV, WY                                                    Bail Bond/Month End/Lawson
------------------------------------------------------------------------------------------------------------------------------------
5000     BOP               FL, LA                        Business Owners Program                         Bankers On-Line/Month End/
                                                                                                         Lawson (LA Coding Ticket)
------------------------------------------------------------------------------------------------------------------------------------
5000     BOP      SPEC     FL                                                      Special               Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     BPAK              FL                            Beauty Pak                                      Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     BTA               FN (Mexico)                   Border Trucking and Auto                        Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     CAPP     PP       FL                            Consumers Auto                                  Coding Tickets/Month End
                                                         Protection Program                              Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     CAU               FL                            Commercial Auto                                 Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     CAU               FL                            JUA Commercial Auto                             Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     CAUP              FL                            Combination Auto Policy                         Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     CELL              FL                            Mobile Telephone                                Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     CFIR              FL                            Commercial Fire                                 Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     CFIR     SPEC     FL, AL, AR, MO, MS, TN                                  Special               Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
</Table>

AA-Annual Auto           F+S-Fidelity + Surety                  IM-Inland Marine
BU-Burglary              FR-Fire + Allied Lines                DP-Personal Lines
BO-Business Owners       GLA-General Liability        MPA-Professional Liability
                               GS-Glass

                                       21

<PAGE>
                         Product Descriptions by State
                                   Appendix A

<Table>
<Caption>
------------------------------------------------------------------------------------------------------------------------------------
COMPANY  PRODUCT  SUBLINE  STATE                         PRODUCT DESCRIPTION      SUBLINE DESCRIPTION    POLICY PROCESSING SYSTEM
------------------------------------------------------------------------------------------------------------------------------------
<S>      <C>      <C>      <C>                           <C>                      <C>                    <C>
5000     CHTR     SPEC     AR, AZ, FL, GA, IL, IN, KY,   Chartered Boat Program   Special
                           LA, MO, MS, NC, SC, TN, UT,
                           VA, WA                                                                        Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     CMNF              FL, GA, KY, LA, MS, SC, TN    Chattel Mortgage                                Coding Tickets/Month End
                                                         Non-Filing
------------------------------------------------------------------------------------------------------------------------------------
5000     COMM              FL                            Commercial                                      Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     CPP               FL                            Commercial Package
                                                         Policy                                          Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     CPP      SPEC     FL                                                     Special                Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     CPPI              FL, GA, ID, KY, LA, MS, NC,
                           SC, TN
------------------------------------------------------------------------------------------------------------------------------------
5000     CRIM              FL                                                                            Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     DAYC              FL                            DayCare
------------------------------------------------------------------------------------------------------------------------------------
5000     DFI(O)            FL, SC                        Dwelling Fire                                   IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     DFI(2)            FL                            FPCJUA                                          IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     DFI(3)   DP03     FL                            FRPCJUA                  DP03 - Form            IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     DFI(3)   DP01     FL                            FRPCJUA                  DP01 - Form            IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     DFI(3)   DP02     FL                            FRPCJUA                  DP02 - Form            IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     DFI      DP01     FL, SC                                                 DP01 - Form            IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     DFI      DP02     FL, SC                                                 DP02 - Form            IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     DFI      DP03     FL, SC                                                 DP03 - Form            IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     DHO               FL                            Direct Response                                 IMSG Main On-Line/Month End
                                                         Homeowners
------------------------------------------------------------------------------------------------------------------------------------
5000     DMH               AZ, FL                        Direct Response Mobile                          IMSG Main On-Line/Month End
                                                         home
------------------------------------------------------------------------------------------------------------------------------------
5000     DRT               FL                            Direct Response Renters                         IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     E&O               FL                            Errors & Omission                               Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     EL                AL, FL, LA                    Employers Liability                             Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     FARM              FL                            Farm Protector Plan                             Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     FDTY              FL                            Fidelity Bonds                                  Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
</Table>

AA-Annual Auto           F+S-Fidelity + Surety                  IM-Inland Marine
BU-Burglary              FR-Fire + Allied Lines                DP-Personal Lines
BO-Business Owners       GLA-General Liability        MPA-Professional Liability
                               GS-Glass
                                       22

<PAGE>
                         Product Descriptions by State
                                   Appendix A

<Table>
<Caption>
------------------------------------------------------------------------------------------------------------------------------------
COMPANY  PRODUCT  SUBLINE  STATE                         PRODUCT DESCRIPTION      SUBLINE DESCRIPTION    POLICY PROCESSING SYSTEM
------------------------------------------------------------------------------------------------------------------------------------
<S>      <C>      <C>      <C>                           <C>                      <C>                    <C>
5000     FLD      PREF     AL, AK, AR, AZ, CA, DC, DE,   Flood                    Preferred Risk
                           FL, GA, IA, IL, IN, KY, LA,
                           MD, MO, MS, MT, NC, NM, NV,
                           OH, PA, SC, SD, TN, TX, VA,
                           WI                                                                            IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     FLD      CNDO     AL, AZ, AR, CA, DC, DE, FL,
                           GA, IL, IA, IN, KY, LA, MD,
                           MS, MO, MT, NC, NM, NV, OH,
                           PA, SC, SD, TN, TX, VA                                                        IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     FLD      MPPP     AL, AK, AZ, AR, CA, DC, DE,
                           FL, GA, IA, IL, IN, KY, LA,
                           MD, MO, MS, MT, NC, NM, NV,
                           OH, PA, SC, SD, TN, TX, VA,
                           WI                                                                            IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     FLD      RGLR     AL, AK, AZ, AR, CA, DC, FL,
                           GA, IA, IN, KY, MT, MD, NC,
                           SD, WI                                                                        IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     FLD      RCBP     AK, AL, AR, AZ, CA, DC, DE,                            Residential Condo
                           FL, GA, IA, IL, IN, KY, LA,                            Building Assn
                           MD, MO, MS, MT, NC, NM, NV,
                           OH, PA, SC, SD, TN, TX, VA,
                           WI                                                                            IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     FLDX     RGLR     AL, AZ, CA, DC, DE, FL, GA,   Excess Flood             Regular
                           IA, IL, LA, MD, MS, NV, PA,
                           SC, TX, VA                                                                    Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     FREA              FL                            E&O                                             Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     FWUA              FL                            Florida Windstorm                               ??
                                                         Underwriting Assn.
------------------------------------------------------------------------------------------------------------------------------------
5000     FWUA     HO       FL                                                     Homeowners             ??
------------------------------------------------------------------------------------------------------------------------------------
5000     FWUA     GB       FL                                                     General Building       ??
------------------------------------------------------------------------------------------------------------------------------------
</Table>

AA-Annual Auto           F+S-Fidelity + Surety                  IM-Inland Marine
BU-Burglary              FR-Fire + Allied Lines                DP-Personal Lines
BO-Business Owners       GLA-General Liability        MPA-Professional Liability
                               GS-Glass

                                       23

<PAGE>
                         Product Descriptions by State
                                   Appendix A

<Table>
<Caption>
------------------------------------------------------------------------------------------------------------------------------------
COMPANY  PRODUCT  SUBLINE  STATE                         PRODUCT DESCRIPTION      SUBLINE DESCRIPTION    POLICY PROCESSING SYSTEM
------------------------------------------------------------------------------------------------------------------------------------
<S>      <C>      <C>      <C>                           <C>                      <C>                    <C>
5000     GARA     SPEC     FL                            Garage                   Special                Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     GL                AL, FL, GA, IN, LA, MI, MS,   General Liability
                           NC, OK, SD, TX                                                                Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     GL       SPEC     AL, FL, GA, IL, KY, LA, MS,                            Special
                           NC, PA, TN, TX                                                                Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     GL       APPR     FL                                                     Real Estate Appraisers
                                                                                  Professional Liab.     Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     GL       GAP      FL, GA, LA                                             Guarantee Auto
                                                                                  Protection             Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     GL       ETCH     GA                                                     ETCH                   Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     GL       MGI      GA                                                     Manufacturer's
                                                                                  Guardian Inc.          Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     GL       AGI      IL                                                     American Guardian Inc. Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     GL       SCGD     FL                                                                            Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     GUNS              FL, AZ, OH, TX                Firearms                                        Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     HO                FL, SC                        Homeowners                                      IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     HO(2)             FL                                                                            IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     HO(3)    HO2      FL                                                     HO Form 2              IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     HO(3)    HO3      FL                                                     HO Form 3              IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     HO(3)    HO6      FL                                                     HO Form 6              IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     HO(3)    HO4      FL                                                     HO Form 4              IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     HO(3)    HO2M     FL                                                                            IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     HO(3)    HO3M     FL                                                                            IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     HO       HO3      FL, SC                                                                        IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     HO       HO4      FL, SC                                                                        IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     HO       HO6      FL, SC                                                                        IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     HO       HO8      FL, SC                                                                        IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     INLM              FL                            Inland Marine                                   Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     INLM     SPEC     AL, AR, AZ, FL, GA, MO, MS,                            Special
                           NJ, OH, TN, TX                                                                Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
</Table>

AA-Annual Auto           F+S-Fidelity + Surety                  IM-Inland Marine
BU-Burglary              FR-Fire + Allied Lines                DP-Personal Lines
BO-Business Owners       GLA-General Liability        MPA-Professional Liability
                               GS-Glass

                                       24

<PAGE>
                         Product Descriptions by State
                                   Appendix A

<Table>
<Caption>
------------------------------------------------------------------------------------------------------------------------------------
COMPANY  PRODUCT  SUBLINE  STATE                         PRODUCT DESCRIPTION      SUBLINE DESCRIPTION    POLICY PROCESSING SYSTEM
------------------------------------------------------------------------------------------------------------------------------------
<S>      <C>      <C>      <C>                           <C>                      <C>                    <C>
5000     ISF               FL                            Installment Sales
                                                          Floater
------------------------------------------------------------------------------------------------------------------------------------
5000     MCNT     SCEC     AR, AZ, FL, GA, IL, IN, KY,   Marine Contractors       Special
                           LA, MO, MS, NC, SC, TN, UT,   Program
                           VA, WA                                                                        Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     MCWR              FL                            Motorcycle Warranty
                                                         Guaranty                                        Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     MCY               FL                            Motorcycle                                      Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     MH                FL                            Mobile home                                     Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     MH       HO2      FL                                                     FRPCJUA - HO2          Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     MH       HO3      FL                                                     FRPCJUA - HO3          Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     MH       DP01     FL                                                     FRPCJUA - DFI Mobile
                                                                                  home                   Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     MH       HO4      FL                                                     FRPCJUA - HO4          Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     MMAI              FL                            Medical Malpractice                             Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     MOLL     SPEC     AR, AZ, FL, GA, IL, IN, KY,   Marine Owners Legal      Special
                           LA, MO, MS, NC, SC, TN, UT,   Liability
                           VA, WA                                                                        Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     NAGA     PP       WA                            General Agent Program    Private Passenger      Tape/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     NAGA              WA                                                                            Tape/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     NSAP     PP       FL, LA                        Private Passenger Auto   Private Passenger
                                                         Program                                         IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     NSAP     SEL      FL, LA, SC                                             Select                 IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     NSCA              FL                            Business Auto            Manual (old program)   Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     NSCA     NCA      FL                            Business Auto            Automated              Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     NSCA     SCA      FL                            Non-Standard Commercial
                                                         Auto                                            Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     OCM               FL                                                                            Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     OMNI              FL, IN                        Marine Industries
                                                         Omnibus Insurance                               Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     PDPI     PP       FL                            PIP & Property Damage    Private Passenger      IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     PIP      PP       FL                            Personal Injury          Private Passenger
                                                         Protection                                      IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     PIP               FL                            FJUA-Personal Injury
                                                         Protection                                      IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     PLSC              FL                            Personal Lines
                                                         Supplemental Coverage                           IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
</Table>

AA-Annual Auto           F+S-Fidelity + Surety                  IM-Inland Marine
BU-Burglary              FR-Fire + Allied Lines                DP-Personal Lines
BO-Business Owners       GLA-General Liability        MPA-Professional Liability
                               GS-Glass

                                       25

<PAGE>
                         Product Descriptions by State
                                   Appendix A

<Table>
<Caption>
------------------------------------------------------------------------------------------------------------------------------------
COMPANY  PRODUCT  SUBLINE  STATE                         PRODUCT DESCRIPTION      SUBLINE DESCRIPTION    POLICY PROCESSING SYSTEM
------------------------------------------------------------------------------------------------------------------------------------
<S>      <C>      <C>      <C>                           <C>                      <C>                    <C>
5000     QSMP              FL                            Quik Rate Special
                                                         Multi-Peril                                     IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     RAIL              AL, AK, AR, AZ, CA, CO, CT,   Railroad
                           DC, DE, FL, GA, HI, IA, ID,
                           IL, IN, KS, KY, LA, MD, MI,
                           MN, MO, MS, MT, NC, ND, NE,
                           NH, NJ, NM, NV, NY, OH, OK,
                           OR, PA, RI, SC, SD, TN, TX,
                           UT, VA, VT, WA, WI, WV, WY                                                    Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     SAU               FL                            Standard Auto                                   Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     SAU      SPEC     FL                            Standard Auto            Special                Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     SAU(1)   PP       AL, AK, AR, AZ, CA, CO, CT,   FJUA                     Private Passenger
                           DC, DE, FL, GA, IA, ID, IL,
                           IN, KS, KY, LA, ME, MI, MN,
                           MO, MS, MT, NC, ND, NE, NH,
                           NJ, NM, NV, NY, OH, OK, OR,
                           PA, RI, SC, SD, TN, TX, UT,
                           VT, VA, WA, WI, WV, WY
------------------------------------------------------------------------------------------------------------------------------------
5000     SAU      SPEC     KY                                                                            Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     SAU      TRUK     AL, AR, FL, GA, MS, NC, SC,                            Commercial Auto Truck
                           TN                                                     Program                Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     SAU(6)   PP       SC                            SC Associated Auto
                                                         Insurers Plan
------------------------------------------------------------------------------------------------------------------------------------
5000     SMBT     SPEC     AR, AZ, FL, GA, IL, IN, KY,   Small Boat Program       Special
                           LA, MO, MS, NC, SC, TN, UT,
                           VA, WA                                                                        Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     SCAU              FL                            Special Commercial Auto                         Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     SRTY              AL, AR, DC, DE, FL, GA, IA,   Surety Bonds
                           IL, KS, KY, LA, MD, MO, MS,
                           MT, NC, NM, NV, OH, OK, PA,
                           SC, SD, TX, VA                                                                Access DB/Coding Tickets/
                                                                                                         Month End
------------------------------------------------------------------------------------------------------------------------------------
</Table>

AA-Annual Auto           F+S-Fidelity + Surety                  IM-Inland Marine
BU-Burglary              FR-Fire + Allied Lines                DP-Personal Lines
BO-Business Owners       GLA-General Liability        MPA-Professional Liability
                               GS-Glass

                                       26

<PAGE>
                         Product Descriptions by State
                                   Appendix A

<Table>
<Caption>
------------------------------------------------------------------------------------------------------------------------------------
COMPANY  PRODUCT  SUBLINE  STATE                         PRODUCT DESCRIPTION      SUBLINE DESCRIPTION    POLICY PROCESSING SYSTEM
------------------------------------------------------------------------------------------------------------------------------------
<S>      <C>      <C>      <C>                           <C>                      <C>                    <C>
5000     SRTY     EAST     AL, FL, GA, NC, SC                                     East                   Access DB/Coding Tickets/
                                                                                                         Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     SRTY     WEST     AR, GA, OK, TX                                         West                   Access DB/Coding Tickets/
                                                                                                         Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     SRTY     SPEC     DC, FL, GA, IL, NC, SC, VA                                                    Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     SRTY     ORI      FL                                                     Orion                  Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     TBND     OPT1     FL, GA, IL, NC, SC, TN, VA,
                           WA                                                                            Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     TBND     OPT2     FL, GA, IL, NC, SC, TN, VA,
                           WA                                                                            Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     TBND     OPT3     FL, GA, IL, NC, SC, TN, VA,
                           WA                                                                            Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     TTI      SPEC     FL                            Temporary Travel
                                                         Insurance                                       Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     UMBR              FL                            Umbrella Policy                                 Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     UMBR     SPEC     AL, FL, GA, KY, IL, MS, PA,                            Special
                           TN, TX                                                                        Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     VECT              FL, GA, LA                    Vector                                          Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     VECT     GL       FL, GA, LA                                             General Liability      Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     VECT     CPP      FL, GA, LA, TX                                         Commercial Package
                                                                                  Policy                 Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     VEGA     GL       CA                            Vector                   General Liability      Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     WIND              FL                                                                            Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     YAT      SPEC     AL, CT, DC, FL, GA, LA, MS,   Yacht Program
                           NC, SC, TX, VA                                                                Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5000     YAHT     SPEC     AR, AZ, FL, GA, IL, IN, KY,   Yacht Program            Special
                           LA, MO, MS, NC, SC, TN, UT,
                           VA, WA                                                                        Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
5010     NSAP     PP       TX                                                                            IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5010     NSAP     SEL      TX                                                                            IMSG Main On-Line/Month End
------------------------------------------------------------------------------------------------------------------------------------
5010     NSCA     SCA      TX                                                                            Coding Tickets/Month End
------------------------------------------------------------------------------------------------------------------------------------
</Table>

AA-Annual Auto           F+S-Fidelity + Surety                  IM-Inland Marine
BU-Burglary              FR-Fire + Allied Lines                DP-Personal Lines
BO-Business Owners       GLA-General Liability        MPA-Professional Liability
                               GS-Glass

                                       27

<PAGE>
                                   SCHEDULE B

                                PRICING SCHEDULE

[*]

* Indicates that material has been omitted and confidential treatment has been
  requested therefor. All such omitted material has been filed separately with
  the SEC pursuant to Rule 24b-2.

                                       28
<PAGE>
                                   EXHIBIT I

               INSURANCE ADMINISTRATION SERVICES (AT RISK LINES)

1)   DEFINITIONS. Capitalized terms not otherwise defined in the Agreement or in
     this Exhibit shall be construed as otherwise generally understood in the
     insurance and data processing industry.

2)   POLICY ADMINISTRATION. IMS shall administer Customer's at risk policies
     ("At Risk Policies") performing the services listed hereunder in accordance
     with the applicable rules and regulations. The term "At Risk Policies"
     includes the Auto and Homeowner Authorized Line of Business but shall
     specifically exclude all of Customer's Commercial, X-Flood, Contract
     Surety, Tenant Bond policies and any Customer line of business administered
     by a General Agent as of the Effective Date of the Agreement.

     a)   Underwriting.
     -    Review At Risk Policy application for
          completeness/contact Agent as applicable;
     -    Create At Risk Policy file;
     -    Underwriting based on Customer underwriting guidelines.

     b)   Data Entry.
     -    New At Risk Policy business;
     -    At Risk Policy changes;
     -    Debtor changes (as applicable);
     -    At Risk Policy insurance Agent changes;
     -    Endorsements;
     -    Cancellations.

     c)   At Risk Policy Issuance.
     -    At Risk Policy for new business, renewals and endorsements where
          declaration page issuance is required;
     -    At Risk Policy Renewal processing;
     -    At Risk Policy print declarations and related At Risk Policy forms.

     d)   Billing & Collection.
     -    Print invoices, reminders, cancellation notification, return At Risk
          Policy premium disbursement;
     -    Mortgage activity processing (as applicable);
     -    Process cancellations for non-payment.

     e)   Customer Service.
     -    Provide a dedicated customer service support call center;
     -    Respond to Customer's At Risk Policyholder and insurance
          sales Agent telephone inquiries;
     -    Process requests for At Risk Policy changes;
     -    Respond to correspondence related to At Risk Policy and At Risk
          Policy claim administration services;
     -    Track and respond to complaints related to At Risk Policy and/or At
          Risk Policy claim administration services; IMS customer service hours
          of operation 8:00 a.m. to 8:00 p.m. Eastern Standard Time ("EST")
          every Business Day except where noted.

     f)   Accounting Administration/Premium.
     -    Posting, balancing, and control of At Risk Policy premium receivable;

                                       31
<PAGE>
     g)   Treasury.
     -    Receive and post At Risk Policy payments;
     -    Issuance, control and accounting for disbursements of At Risk Policy
          premium related expenses;
     -    OCR AT Risk Policy payment processing;
     -    Mortgagee billing (as applicable).

     h)   Print & Distribution Services.
     -    Automated document library;
     -    Electronic document assembly;
     -    Electronic document archival/retrieval;
     -    Automated finishing/insertion facility;
     -    Mail pre-sort facility;
     -    Mailing At Risk Policy, At Risk Policy billings and At Risk Policy
          renewals (including all or part of the postage expense as provided in
          Schedule B, Section V, Paragraph (2));
     -    Document Imaging.

     i)   System Administration.
     -    Availability of Proprietary System to Customer and Customer's At Risk
          Policy claim vendor;
     -    Process daily, weekly, monthly, and annual cycles;
     -    Internet processing capabilities.

3)   CLAIM ADMINISTRATION. IMS shall provide the following claim administration
services:

     a)   Claim Management Facilitation.
     -    Twenty-four (24) hour reporting capability, first notice of loss,
          coverage verification and At Risk Policy claim;
     -    Investigation, evaluation and settlement of At Risk Policy claim;
     -    Reinspection and audit;
     -    Claims handling standards/best practices;
     -    Claim check issuance;
     -    Management reports;
     -    At Risk Policyholder satisfaction surveys;
     -    Special Investigation Unit ("SIU") services;
     -    Salvage & subrogation claim processing;
     -    Litigation support.

     b)   Catastrophe Preparation and Response.
     -    Preparedness by developing media reference guides and notices,
          adjuster workshops, and training manuals; provide storm tracking;
          reserve equipment and supplies; establish procedures;
     -    Response in case of a catastrophic event by establishing and staffing
          satellite service centers; automating the distribution of claims to
          adjusters; internal examinations/external reinspections;
     -    Recovery by providing management reports, audit/reinspection program,
          SIU and oversight operations.

4)   ADJUSTING FIRM. IMS' Colonial Catastrophe Claims Service will be the
authorized adjusting firm ("Adjusting Firm") for all claims catastrophe
adjusting work on behalf of Customer. However, IMS may designate a different
Adjusting Firm with written notice to Customer.

5)   DISASTER RECOVERY PLAN. IMS shall perform its' full range Disaster
Recovery Plan on an annual basis. Customer has the right to observe the
Disaster Recovery Plan at its own expense, provided that it has requested in
writing to participate within thirty (30) days of planned execution.

6)   SPECIAL SERVICES.

ADDITIONAL FEES & SERVICES. ADDITIONAL SERVICES NOT SPECIFIED IN THIS AGREEMENT
MAY BE PROVIDED BY AS MUTUALLY AGREED UPON IN WRITING BETWEEN THE CUSTOMER AND
IMS IN WRITING.

                                       32
<PAGE>
                                   EXHIBIT II
                                   ----------

                 INSURANCE ADMINISTRATION SERVICES (WYO FLOOD)
                 ---------------------------------------------

          WHEREAS, The Federal Emergency Management Agency ("FEMA") and the
Federal Insurance Administration ("FIA") administer the National Flood Insurance
Program ("NFIP") and Customer is an insurance company duly licensed to write
flood insurance in the state or states to which this Agreement pertains and is
approved by FIA to act as a Write Your Own Company ("WYO Company") under the
Write Your Own Flood Insurance Program ("WYO Flood Program"), a program offered
under the NFIP; and

          WHEREAS, Customer wishes to engage the services of IMS to administer
certain of the Customer's obligations as a WYO Company in the state(s)
("Authorized States") set forth in SCHEDULE A.

1)   DEFINITIONS.  Capitalized terms not otherwise defined in the Agreement or
     in this Exhibit shall be construed as otherwise generally understood in the
     insurance and data processing industry.

2)   POLICY ADMINISTRATION.  IMS shall administer Customer's WYO Flood Program
     policies ("WYO Policies") performing the services listed hereunder in
     accordance with the NFIP, as amended, and all implementing regulations as
     well as Customer's Write Your-Own Arrangement ("Arrangement") with FEMA.
     The same standards by which Customer is bound shall be those by which IMS
     is bound to Customer.

     a)   Underwriting.
     -    Review WYO Policy application for completeness/contact Agent as
          applicable;
     -    Create WYO Policy file;
     -    Underwriting based on NFIP guidelines.

     b)   Data Entry.
     -    New WYO Policy business;
     -    WYO Policy changes;
     -    Mortgagee changes;
     -    WYO Flood insurance Agent changes;
     -    Endorsements;
     -    Cancellations.

     c)   WYO Policy Issuance.
     -    WYO Policy for new business, renewals and endorsements where
          declaration page issuance is required;
     -    WYO Policy Renewal processing;
     -    WYO Policy automated rating;
     -    WYO Policy print declarations and related WYO Policy forms.

     d)   Billing & Collection.
     -    Print invoices, reminders, cancellation notification, return WYO
          Policy premium disbursements;
     -    Mortgage activity processing;
     -    EFT processing;
     -    Process cancellations for non-payment.

     e)   Customer Service.
     -    Provide a dedicated customer service support call center;
     -    Respond to Customer's WYO Policyholder and WYO flood insurance sales
          Agent telephone inquires;
     -    Process requests for WYO Policy changes;
     -    Respond to correspondence related to WYO Policy and WYO Policy claim
          administration services;

                                       33
<PAGE>
     -    Track and respond to complaints related to WYO Policy and/or WYO
          Policy claim administration services; IMS customer service hours of
          operation 8:00 a.m. to 8:00 p.m. Eastern Standard Time ("EST") every
          business day except where noted.

     f)   Bureau Reporting.
     -    Process and balance WYO Policy premium and WYO Policy loss data;
     -    Edit and correct invalid data;
     -    Prepare and mail Bureau transmittals;
     -    To the best of IMS knowledge, provide on-going regulatory changes;
     -    Maintain WYO Policy history files.

     g)   Accounting Administration/Premium.
     -    Posting, balancing, and control of WYO Policy premium receivable;
     -    Issuance, control and accounting for disbursements for WYO Policy
          premium refunds.

     h)   Financial Accounting.
     -    Issuance, control and accounting for disbursements for general
          expenses;
     -    Day-to-day management of short term cash;
     -    Provide reasonable and customary financial management reports.

     i)   Treasury.
     -    Receive and post WYO Policy payments;
     -    Issuance, control and accounting for disbursements of WYO Policy
          premium related expenses;
     -    Bank reconciliation of WYO Policy premium disbursements;
     -    OCR WYO Policy payment processing;
     -    Mortgagee billing.

     j)   Print & Distribution Services.
     -    Automated document library;
     -    Electronic document assembly;
     -    Electronic document archival/retrieval;
     -    Automated finishing/insertion facility;
     -    Mail pre-sort facility;
     -    Mailing WYO Policy, WYO Policy billings and WYO Policy renewals
          (including all or part of the postage expense as provided in
          Schedule B, Section V, Paragraph (2));
     -    Document Imaging.

     k)   System Administration.
     -    Availability of Proprietary System to Customer and Customer's WYO
          Policy claim vendor;
     -    Process daily, weekly, monthly, and annual cycles;
     -    Internet processing capabilities.

3)   CASH MANAGEMENT.

     a)   Banking Arrangement.  IMS and Customer shall establish a banking
     arrangement that complies with the Arrangement and other WYO Flood program
     requirements, and which will provide for the establishment of an NFIP
     restricted account ("Restricted Account") with Customer as custodian, and a
     FEMA letter of credit ("Letter of Credit"), with additional accounts as
     needed to facilitate WYO Flood Program operations, all in conformity with
     FEMA/FIA guidelines. Customer shall grant specific IMS' employees
     check-signing authority on any Restricted Account and the authority to
     initiate appropriate drawdowns against Customer's Letter of Credit, in
     order for IMS to act on Customer's behalf in making disbursements for
     Customer liabilities established by the Arrangement, the WYO Flood Program,
     and this Agreement. All such authorizations shall be in writing and may be
     revoked, amended or modified at any time by Customer upon thirty (30) days
     advanced written notice to IMS. Notwithstanding the foregoing, IMS shall
     not draw down on Letter of Credit for an amount that exceeds $50,000.00
     without prior approval from the Chief Financial Officer of Customer, which
     approval shall not be unreasonably withheld and shall be given within 24
     hours of the request being made by IMS.

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<PAGE>
     b)   Premium Remittance - IMS shall establish procedures, as determined by
     FIA, for a timely deposit and remittance of funds to the U.S. Treasury via
     authorized automatic clearinghouse mechanism. Gross premium collected by
     IMS, for WYO Flood program business written under this Agreement, shall be
     remitted to the FIA by IMS net of the established NFIP Expense Allowance.
     ("Allowance"), which Allowance expenses to be paid under the Allowance
     include Carrier's operating and administrative expenses.

     c)   Financial Data - IMS shall maintain supporting documentation for all
     bank accounts over which it has authority. On a monthly basis, IMS shall
     prepare financial data, reflecting all debits and credits with respect to
     WYO Flood Program business administered under this Agreement, including
     IMS' Service Fees paid.

     d)   WYO Flood Program Reimbursements - Any WYO Flood Program
     reimbursements made pursuant to the Arrangement, including, but not limited
     to, those for the unallocated loss adjustments expenses, the allocated loss
     adjustments, and for approved special allocated loss adjustments expenses,
     shall be payable to IMS upon receipt by Customer.

     e)   Marketing Goals - Customer shall maintain responsibility for any risk,
     or shall be entitled to any reward, that may be associated with achieving
     or failing to achieve any marketing goal set by the FIA or FEMA.

4)   CLAIM ADMINISTRATION.    IMS shall provide Claims administration in
     accordance with the Arrangement, the Financial Control Plan and the
     Agreement, which claim administration processing services are outlined
     below. Any litigation costs not reimbursed by FEMA would be the
     responsibility of the Customer. IMS may also rely on the information and
     direction contained in the WYO Flood Program Claims Manual, the FEMA
     Adjuster Manual, the Flood Insurance Agent's Manual, the Standard Flood
     Insurance Policy, the WYO Operational Overview, and/or other WYO Flood
     Program instructional material.

     a)   Claim Management Facilitation.
     -    Twenty-four (24) hour reporting capability, first notice of loss,
          coverage verification and WYO Policy claim;
     -    Investigation of WYO Policy claim;
     -    Fast track unit;
     -    Reinspection and audit;
     -    Claims handling standards/best practices;
     -    Claim check issuance;
     -    Management reports;
     -    WYO Policyholder satisfaction surveys;
     -    Special Investigation Unit ("SIU") services;
     -    Salvage & subrogation claim processing;
     -    Litigation support.

     b)   Catastrophe Preparation and Response.
     -    Preparedness by developing media reference guides and notices,
          adjuster workshops, and training manuals; provide storm tracking;
          reserve equipment and supplies; establish procedures;
     -    Response in case of a catastrophic event by establishing and staffing
          satellite service centers; automating the distribution of claims to
          adjusters; internal examinations/external reinspections;
     -    Recovery by providing management reports, audit/reinspection program,
          SIU and oversight operations.

5)        ADJUSTING FIRM.  IMS' Colonial Catastrophe Claims Service will be the
          authorized adjusting firm ("Adjusting Firm") for all claims adjusting
          work on behalf of Customer. However, IMS may designate a different
          Adjusting Firm with days written notice to Customer.

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<PAGE>
6)   DISASTER RECOVERY PLAN.  IMS shall perform its' full range Disaster
     Recovery Plan on an annual basis. Customer has the right to observe the
     Disaster Recovery Plan at its own expense, provided that it has requested
     in writing to participate within thirty (30) days of planned execution.

7)   STATISTICAL REPORTING.  IMS shall maintain Customer's data within IMS'
     policy claims and general ledger systems. IMS shall prepare and submit to
     FIA, monthly financial and statistical reports, reconciliation reports,
     certifications, and statistical tapes on Customer's behalf, in accordance
     with WYO Flood Program Accounting Procedures and the Transaction Record
     Reporting and Processing Plan ("TRRP Plan").

8)   SPECIAL SERVICES.

     a)   Audit - At Customer's expense and at IMS' premises, IMS shall conduct
          a biennial audit of any and all WYO Flood Program business written by
          Customer pursuant to this Agreement. IMS shall select an independent
          auditor and IMS shall present the expense estimate for the biennial
          audit to Customer. Within fifteen (15) days of receiving the estimate,
          Customer shall have the option of selecting their own independent
          auditor to conduct the audit or proceed with the independent auditor
          selected by IMS.

     b)   Zone Determination Services - IMS shall provide flood zone
          determinations to the Customer (or Customer's Agents) to assist in
          writing a WYO Policy to be placed with the Customer and administered
          by IMS.

     c)   Training - Upon Customer's request, IMS will provide six (6) training
          sessions per calendar year to Customer and/or Customer's Agents.
          Customer will provide the training facility. Additional requests for
          training will be charged at One Hundred and Twenty Five Dollars ($125)
          per day plus reasonable per diem and travel expensed incurred.

     d)   Marketing Material.  IMS will make available to Customer its marketing
          or promotional materials, which IMS may customize and produce for
          Customer at Customer's expense.

     e)   Additional Fees & Services.  Additional services not specified in this
          Agreement may be provided by as mutually agreed upon in writing
          between the Customer and IMS in writing.

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<PAGE>
SERVICE LEVEL AGREEMENT

PROCEDURES:
-    Data received by IMS after 2:00 P.M. Eastern Standard Time ("EST")
     will be considered "received" on the following Business Day (as defined in
     the Agreement).
-    A policy is considered issued when the declaration page and attachments are
     generated in the Proprietary System (as defined in the Agreement) and
     mailed out.
-    Customer's "Business Hours" are 8:30 A.M. Eastern Standard Time to 8:00
     P.M. Eastern Standard Time. - "Service Standard Levels" (as outlined below)
     will be validated using the IMS received date stamped on the request.

POLICY ADMINISTRATION SERVICE STANDARD LEVELS:

Automobile Policies

1.   All new business transactions will be issued within seven Business Days of
     receipt by IMS, provided all information is complete and correct, with an
     overall business time service average not to exceed twelve (12) Business
     Days.
     2.   All renewal transactions will be issued within six (6) Business Days
          of receipt by IMS, provided all information is complete and correct,
          with an overall business time service average not to exceed nine (9)
          Business Days.
     3.   All money endorsements will be issued within six (6) Business Days of
          receipt by IMS, provided all information is complete and correct, with
          an overall business time service average not to exceed nine (9)
          Business Days.
     4.   All cancellations received will be processed within three (3) Business
          Days of receipt by IMS, provided all information is complete and
          correct, with an overall business time service average not to exceed
          six (6) Business Days.
     5.   All non-money endorsements will be issued within six (6) Business Days
          of receipt by IMS, provided all information is complete and correct,
          with an overall business time service average not to exceed nine (9)
          Business Days.
     6.   All return mail will be re-mailed and issued within fifteen (15)
          Business Days of receipt by IMS, provided all information is complete
          and correct.
     7.   IMS will make contact on all correspondence within seven (7) Business
          Days of receipt.
     8.   IMS will make contact on all incomplete or incorrect transactions
          within seven (7) Business Days of receipt.

Flood Policies
     1.   All new business transactions will be issued within seven (7) Business
          Days of receipt by IMS, provided all information is complete and
          correct, with an overall business time service average not to exceed
          twelve (12) Business Days.
     2.   All renewal transactions will be issued within five (5) Business Days
          of receipt by IMS, provided all information is complete and correct,
          with an overall business time service average not to exceed ten (10)
          Business Days.
     3.   All money endorsements will be issued within seven (7) Business Days
          of receipt by IMS, provided all information is complete and correct,
          with an overall business time service average not to exceed twelve
          (12) Business Days.
     4.   All cancellations received will be processed within seven (7) Business
          Days of receipt by IMS, provided all information is complete and
          correct, with an overall business time service average not to exceed
          twelve (12) Business Days.
     5.   All non-money endorsements will be issued within seven (7) Business
          Days of receipt by IMS, provided all information is complete and
          correct, with an overall business time service average not to exceed
          twelve (12) Business Days.
     6.   All return mail will be re-mailed and issued within fifteen (15)
          Business Days of receipt by IMS, provided all information is complete
          and correct.
     7.   IMS will make contact on all correspondence within seven (7) Business
          Days of receipt.
     8.   IMS will make contact on all incomplete or incorrect transactions
          within seven (7) Business Days of receipt.

                                       1
<PAGE>
Homeowners Policies
     1.   All new business transactions will be issued within seven (7) Business
          Days of receipt by IMS, provided all information is complete and
          correct, with an overall business time service average not to exceed
          twelve (12) Business Days.
     2.   All renewal transactions will be issued within six (6) Business Days
          of receipt by IMS, provided all information is complete and correct,
          with an overall business time service average not to exceed nine (9)
          Business Days.
     3.   All money endorsements will be issued within six (6) Business Days of
          receipt by IMS, provided all information is complete and correct, with
          an overall business time service average not to exceed nine (9)
          Business Days.
     4.   All cancellations received will be processed within three (3) Business
          Days of receipt by IMS, provided all information is complete and
          correct, with an overall business time service average not to exceed
          six (6) Business Days.
     5.   All non-money endorsements will be issued within six (6) Business Days
          of receipt by IMS, provided all information is complete and correct,
          with an overall business time service average not to exceed nine (9)
          Business Days.
     6.   All return mail will be re-mailed and issued within fifteen (15)
          Business Days of receipt by IMS, provided all information is complete
          and correct.
     7.   IMS will make contact on all correspondence within seven (7) Business
          Days of receipt.
     8.   IMS will make contact on all incomplete or incorrect transactions
          within seven (7) Business Days of receipt.

CUSTOMER SERVICE - SERVICE LEVEL STANDARDS:
     1.   IMS will maintain without employing the practice of taking messages,
          no more than 5% phone call abandonment rate, based on the total number
          of customer calls received and not answered at or after a 60 second
          threshold, during Customer's Business Hours.
     2.   A customer service representative will answer 90% of customer service
          calls within 60 seconds, during Customer's Business Hours. A customer
          service representative will answer 98% of customer service calls
          within 90 seconds during Customer's Business Hours and customer
          service will use verbiage and material supplied by Customer.

OPERATIONAL/SYSTEM PROCESSING GOALS:
     1.   Minimum Proprietary System availability of 98% during Customer's
          Business Hours.
     2.   Maintain an average Proprietary System workload less than 80% of
          Proprietary System capacity central processing unit (CPU), disc access
          storage device (DASD).
     3.   Output is generated within one (1) Business Day of print/mail date.
     4.   IMS will verify accurate output (match system data to filed forms) by
          means of random weekly quality checking at point of output in policy
          assembly.

STATISTICAL REPORTING:
IMS will be responsible for submitting the Flood statistical data to the NFIP
based on the NFIP guidelines; provided, however, that Customer takes the
necessary steps to ensure that the data is normalized, edited, quality-checked
and mapped to corresponding bureau codes.

CLAIMS:
     1.   IMS will adjust all claims based on federal, state and product
          guidelines.
     2.   Claims "Business Hours" are 8:00 A.M. Eastern Standard Time to 8:00
          P.M. EST except during a catastrophe then it is 24/7.
     3.   IMS performance of claim services, on behalf of Customer and pursuant
          to the Agreement, shall be in substantial compliance with "Best
          Practices" Manual (policy and procedures manual), which shall be
          attached to and incorporated by reference into this Service Level
          Agreement.

AUDITS:
Customer reserves the right to conduct, at its expense, an annual underwriting
and claims audit. Customer will provide IMS with a 30-day notice.

REPORTS:
IMS will provide to the Customer weekly reports detailing the Service Standard
Levels.

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