Document:

Excess Catastrophe Reinsurance Contract

 Exhibit 10.13 

EXCESS CATASTROPHE REINSURANCE AGREEMENT 

HOMEOWNERS CHOICE 

PROPERTY & CASUALTY INSURANCE COMPANY 

Clearwater, Florida 
 and 

any other insurance companies which are now or 

hereafter come under the ownership, control or management of 

Homeowners Choice, Inc. 

EFFECTIVE:    June 1, 2010 

EXPIRATION:  June 1, 2011 
  

 
  

 

	*****	 Portions of this exhibit marked by ***** have been omitted pursuant to a request for confidential treatment and have been filed separately with the Securities
and Exchange Commission. 

 EXCESS CATASTROPHE REINSURANCE AGREEMENT 

TABLE OF CONTENTS 
  

					
	ARTICLE	    	            DESCRIPTION	  	PAGE
			
	 I
	    	 BUSINESS COVERED
	  	1  
	 II
	    	 TERM
	  	1  
	 III
	    	 EXCLUSIONS
	  	2  
	 IV
	    	 RETENTION AND LIMIT
	  	4  
	 V
	    	 REINSTATEMENT
	  	4  
	 VI
	    	 FLORIDA HURRICANE CATASTROPHE FUND
	  	5  
	 VII
	    	 RATE AND PREMIUM
	  	6  
	 VIII
	    	 DEFINITIONS
	  	7  
	 IX
	    	 LOSS OCCURRENCE DEFINITION
	  	9  
	 X
	    	 ACCESS TO RECORDS
	  	10  
	 XI
	    	 AGENCY (BRMA 73A)
	  	10  
	 XII
	    	 ARBITRATION
	  	10  
	 XIII
	    	 CONFIDENTIALITY
	  	11  
	 XIV
	    	 CURRENCY (BRMA 12A)
	  	12  
	 XV
	    	 ENTIRE AGREEMENT
	  	12  
	 XVI
	    	 ERRORS AND OMISSIONS (BRMA 14F)
	  	12  
	 XVII
	    	 FEDERAL EXCISE TAX (BRMA 17D)
	  	12  
	 XVIII
	    	 FUNDING OF RESERVES
	  	12  
	 XIX
	    	 GOVERNING LAW (BRMA 71B)
	  	15  
	 XX
	    	 INSOLVENCY
	  	15  
	 XXI
	    	 LATE PAYMENTS
	  	16  
	 XXII
	    	 LIABILITY OF THE REINSURER
	  	16  
	 XXIII
	    	 LOSS NOTICE AND SETTLEMENTS
	  	17  
	 XXIV
	    	 NET RETAINED LINES (BRMA 32E)
	  	17  
	 XXV
	    	 NON-WAIVER
	  	17  
	 XXVI
	    	 NOTICES AND AGREEMENT EXECUTION
	  	17  
	 XXVII
	    	 OFFSET (BRMA 36E)
	  	18  
	 XXVIII
	    	 OTHER REINSURANCE
	  	18  
	 XXIX
	    	 SALVAGE AND SUBROGATION
	  	18  
	 XXX
	    	 SERVICE OF SUIT (BRMA 49G)
	  	19  
	 XXXI
	    	 SEVERABILITY (BRMA 72E)
	  	19  
	 XXXII
	    	 TAXES
	  	19  
	 XXXIII
	    	 TERRITORY
	  	20  
	 XXXIV
	    	 INTERMEDIARY (BRMA 23A)
	  	20  

 ATTACHMENT: 

Schedule A 
 Nuclear Incident
Exclusion Clause – Physical Damage – Reinsurance (USA) 
  

 
  

 EXCESS CATASTROPHE REINSURANCE AGREEMENT 

issued to 
 HOMEOWNERS CHOICE 

 PROPERTY & CASUALTY INSURANCE COMPANY 

Clearwater, Florida 
 and 

any other insurance companies which are now or 

hereafter come under the ownership, control or management of 

Homeowners Choice, Inc. 
 (hereinafter
referred to collectively as the “Company”) 
 by 

The Subscribing Reinsurer(s) Executing the 

Interests and Liabilities Contract(s) 

Attached hereto 
 (hereinafter referred
to as the “Reinsurer”) 
 ARTICLE I – BUSINESS COVERED 

This Agreement is to indemnify the Company in respect of its net excess liability as a result of any loss or losses which may occur during the Term
of this Agreement under any policies, contracts and binders of insurance or reinsurance (hereinafter called “Policies”) in force at the effective date hereof or issued or renewed on or after that date, covering business classified by the
Company as the property perils of Homeowners and Dwelling, subject to the terms, conditions and limitations set forth herein and in Schedule A attached to and forming part of this Agreement. 

ARTICLE II – TERM 
  

	A.	 This Agreement shall become effective at 12:01 a.m., Local Standard Time, June 1, 2010, with respect to losses arising out of Loss Occurrences commencing
at or after that time and date, and shall remain in force until 12:01 a.m., Local Standard Time, June 1, 2011. “Local Standard Time” as used herein shall mean local standard time at the location where the Loss Occurrence commences.

  

	B.	 If this Agreement is terminated or expires while a Loss Occurrence covered hereunder is in progress, the Reinsurer’s liability hereunder shall, subject
to the other terms and conditions of this Agreement, be determined as if the entire Loss Occurrence had occurred prior to the termination or expiration of this Agreement, provided that no part of such Loss Occurrence is claimed against any renewal
or replacement of this Agreement. 

  

	C.	 Notwithstanding the provisions of paragraph A above, the Company may reduce or terminate a Subscribing Reinsurer’s percentage share in this Agreement at
any time by 

  

  

 
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giving written notice to the Subscribing Reinsurer in the event any of the following circumstances occur. The effective date of reduction or termination shall be the date selected by the Company,
which may be a date that is retroactively applied up to a maximum of 65 days prior to the date of public announcement for subparagraphs 1 through 5 below or upon discovery for subparagraphs 6 through 8 below, subject to the condition that such
selected date must be the last day of a calendar month: 

  

	 	1.	 The Subscribing Reinsurer’s policyholders’ surplus (or its equivalent under the Subscribing Reinsurer’s accounting system) as reported in such
financial statements of the Subscribing Reinsurer as designated by the Company, has been reduced by 20.0% of the amount of surplus (or the applicable equivalent) at any date during the prior 12-month period (including the 12-month period prior to
the inception of this Agreement); or 

  

	 	2.	 The Subscribing Reinsurer’s A.M. Best’s rating has been assigned or downgraded below A- and/or its Standard & Poor’s rating has been
assigned or downgraded below BBB+; or 

  

	 	3.	 The Subscribing Reinsurer has become merged with, acquired by or controlled by any other entity or unaffiliated individual(s) not controlling the Subscribing
Reinsurer’s operations at the inception of this Agreement; or 

  

	 	4.	 A State Insurance Department or other legal authority has ordered the Subscribing Reinsurer to cease writing business; or 

 

	 	5.	 The Subscribing Reinsurer has become insolvent or has been placed into liquidation, receivership, supervision, administration, winding-up or under a scheme of
arrangement, or similar proceedings (whether voluntary or involuntary) or proceedings have been instituted against the Subscribing Reinsurer for the appointment of a receiver, liquidator, rehabilitator, supervisor, administrator, conservator or
trustee in bankruptcy, or other agent known by whatever name, to take possession of its assets or control of its operations; or 

  

	 	6.	 The Subscribing Reinsurer has reinsured its entire liability under this Agreement without the Company’s prior written consent, except that this provision
shall not apply to any inter-company reinsurance or inter-company pooling arrangements entered into by the Subscribing Reinsurer; or 

  

	 	7.	 The Subscribing Reinsurer has ceased assuming new or renewal property and casualty treaty reinsurance business; or 

 

	 	8.	 The Subscribing Reinsurer has hired an unaffiliated runoff claims manager that is compensated on a contingent basis or is otherwise provided with financial
incentives based on the quantum of claims paid. 

 ARTICLE III – EXCLUSIONS 

 

	A.	 This Agreement does not apply to and specifically excludes the following: 

 

  

 
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	 	1.	 All excess of loss reinsurance assumed by the Company. 

  

	 	2.	 Reinsurance assumed by the Company under obligatory reinsurance agreements, except intercompany reinsurance between the Company and its affiliates and agency
reinsurance where the Policies involved are to be re-underwritten in accordance with the underwriting standards of the Company and reissued as policies of the Company at the next anniversary or expiration date. 

 

	 	3.	 Financial guarantee and insolvency. 

  

	 	4.	 All Accident and Health, Fidelity and Surety, Boiler and Machinery, Workers’ Compensation, and Credit business. 

 

	 	5.	 Flood and/or earthquake when written as such for stand alone Policies where flood and/or earthquake is the only named peril. 

 

	 	6.	 Nuclear risks as defined in the “Nuclear Incident Exclusion Clause - Physical Damage - Reinsurance (U.S.A.)” attached to and forming part of this
Agreement. 

  

	 	7.	 Loss or damage caused by or resulting from war, invasion, hostilities, acts of foreign enemies, civil war, rebellion, insurrection, military or usurped power,
or martial law or confiscation by order of any government or public authority, but this exclusion shall not apply to loss or damage covered under a standard Policy with a standard War Exclusion Clause. 

 

	 	8.	 Loss or liability from any Pool, Association or Syndicate and any assessment or similar demand for payment related to the Florida Hurricane Catastrophe Fund
or Citizens Property Insurance Corporation. 

  

	 	9.	 All liability of the Company arising by contract, operation of law, or otherwise, from its participation or membership, whether voluntary or involuntary, in
any insolvency fund. “Insolvency fund” includes any guaranty fund, insolvency fund, plan, pool, association, fund or other arrangement, however denominated, established or governed, which provides for any assessment of or payment or
assumption by the Company of part or all of any claim, debt, charge, fee or other obligation of an insurer, or its successors or assigns, which has been declared by any competent authority to be insolvent, or which is otherwise deemed unable to meet
any claim, debt, charge, fee or other obligation in whole or in part. 

  

	 	10.	 Loss and/or damage and/or costs and/or expenses arising from seepage and/or pollution and/or contamination, other than contamination from smoke. Nevertheless,
this exclusion does not preclude payment of the cost of removing debris of property damaged by a loss otherwise covered hereunder, subject always to a limit of 25% of the Company’s property loss under the applicable original policy.

  

  

 
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	 	11.	 Loss, damage, cost or expense arising out of an act of terrorism involving the use of any biological, chemical, nuclear or radioactive agent, material, device
or weapon. 

  

	 	12.	 All liability arising out of mold, spores and/or fungus, but this exclusion shall not apply to those losses which follow as a direct result of a loss caused
by a peril otherwise covered hereunder. 

  

	B.	 The Company may submit to the Reinsurer, for special acceptance hereunder, business not covered by this Agreement. Within seven days of receipt of such
request, each Subscribing Reinsurer shall accept such request, ask for additional information, or reject the request. If a Subscribing Reinsurer fails to respond to a special acceptance request within seven days, the Subscribing Reinsurer shall be
deemed to have agreed to the special acceptance. If said business is accepted by the Reinsurer, it will be subject to the terms of this Agreement, except as such terms are modified by such acceptance. Any special acceptance business covered under
the reinsurance agreement being replaced by this Agreement will be automatically covered hereunder. Further, in the event a Subscribing Reinsurer becomes a party to this Agreement subsequent to the special acceptance of any business not normally
covered hereunder, the Subscribing Reinsurer shall automatically accept the same as being a part of this Agreement. 

 ARTICLE IV
– RETENTION AND LIMIT 
  

	A.	 As respects each excess layer of reinsurance coverage provided by this Agreement, the Company shall retain and be liable for the first amount of Ultimate Net
Loss, shown as “Company’s Retention” for that excess layer in Schedule A attached hereto, arising out of each Loss Occurrence. The Reinsurer shall then be liable, as respects each excess layer, for the amount by which such Ultimate
Net Loss exceeds the Company’s applicable retention, but the liability of the Reinsurer under each excess layer shall not exceed the amount, shown as “Reinsurer’s Per Occurrence Limit” for that excess layer in Schedule A attached
hereto, as respects any one Loss Occurrence, nor shall it exceed the amount, shown as “Reinsurer’s Agreement Limit” for that excess layer in Schedule A attached hereto as respects all loss or losses arising out of Loss Occurrences
commencing during the Term of this Agreement. 

  

	B.	 Notwithstanding the provisions above, no claim shall be made under any excess layer as respects losses arising out of Loss Occurrences commencing during the
Term of this Agreement unless at least two risks insured or reinsured by the Company are involved in such Loss Occurrence. For purposes hereof, the Company shall be the sole judge of what constitutes “one risk.”

 ARTICLE V – REINSTATEMENT 
  

	A.	In the event all or any portion of the reinsurance under the second excess layer of reinsurance coverage provided by this Agreement is exhausted by loss, the amount so exhausted
shall be reinstated immediately from the time the Loss Occurrence commences hereon. For each amount so reinstated the Company agrees to pay additional premium equal to the product of the following: 

 

  

 
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	 	1.	The percentage of the Loss Occurrence limit for the excess layer reinstated (based on the loss paid by the Reinsurer under that excess layer); times 

 

	 	2.	The earned reinsurance premium for the excess layer reinstated for the Term of this Agreement (exclusive of reinstatement premium). 

 

	B.	Whenever the Company requests payment by the Reinsurer of any loss under the second excess layer hereunder, the Company shall submit a statement to the Reinsurer of reinstatement
premium due the Reinsurer for that excess layer. If the earned reinsurance premium for the second excess layer for the Term of this Agreement has not been finally determined as of the date of any such statement, the calculation of reinstatement
premium due for that excess layer shall be based on the deposit premium for that excess layer and shall be readjusted when the earned reinsurance premium for that excess layer for the Term of this Agreement has been finally determined. Any
reinstatement premium shown to be due the Reinsurer for the second excess layer as reflected by any such statement (less prior payments, if any, for that excess layer) shall be payable by the Company concurrently with payment by the Reinsurer of the
requested loss for that excess layer. Any return reinstatement premium shown to be due the Company shall be remitted by the Reinsurer as promptly as possible after receipt and verification of the Company’s statement. 

 

	C.	Notwithstanding anything stated herein, the liability of the Reinsurer under the second excess layer of reinsurance coverage provided by this Agreement shall not exceed either of
the following: 

  

	 	1.	The amount, shown as “Reinsurer’s Per Occurrence Limit” for that excess layer in Schedule A attached hereto, as respects loss or losses arising out of any one Loss
Occurrence; or 

  

	 	2.	The amount, shown as “Reinsurer’s Agreement Limit” for that excess layer in Schedule A attached hereto, in all during the Term of this Agreement.

 ARTICLE VI – FLORIDA HURRICANE CATASTROPHE FUND 

 

	A.	The Company shall provisionally purchase mandatory and optional coverage from the Florida Hurricane Catastrophe Fund (FHCF) with the following limits and retentions:

  

	 	1.	90% of $198,000,000 excess of $75,000,000 (mandatory layer); and 

  

	 	2.	90% of $93,000,000 excess of $273,000,000 (optional Temporary Increase in Coverage Limit). 

The provisional limit and retention above may increase or decrease in accordance with the provisions of the reimbursement contract
between the Company and the State Board of Administration of the State of Florida (SBA). 
  

  

 
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	B.	 Any loss reimbursement paid or payable to the Company for the mandatory and optional coverage layers provided by the FHCF, and resulting from Loss Occurrences
commencing during the Term of this Agreement, shall inure to the benefit of this Agreement. Further, any FHCF loss reimbursement shall be deemed paid to the Company in accordance with the reimbursement contract between the Company and the SBA at the
full payout level set forth therein. It is further deemed that any loss reimbursement shall not be reduced by any reduction or exhaustion of the actual claims-paying capacity of the FHCF and that the FHCF fund balance is deemed funded to the fullest
extent allowable by Florida statute. 

  

	C.	 Prior to final calculation of the Company’s FHCF retention and payout for the mandatory and optional layers provided by the reimbursement contract
between the Company and the SBA, the Reinsurer’s liability hereunder will provisionally be calculated based on the projected FHCF payout and in accordance with paragraph B above. Following the FHCF’s final calculation of the payout for the
coverage layers provided by the reimbursement contract, the Ultimate Net Loss under this Agreement will be recalculated. If, as a result of such calculation, the loss to the Reinsurer under any excess layer in any one Loss Occurrence is less than
the amount previously paid by the Reinsurer under the excess layer, the Company shall promptly remit the difference to the Reinsurer. If the loss to the Reinsurer in any one Loss Occurrence under any excess layer is greater than the amount
previously paid by the Reinsurer, the Reinsurer shall promptly remit the difference to the Company. For purposes of both the provisional and final calculation of Reinsurer liability referenced above, it is deemed that any FHCF loss reimbursement
shall not be reduced by any reduction or exhaustion of the actual claims-paying capacity of the FHCF and that the FHCF fund balance is deemed funded to the fullest extent allowable by Florida statute. 

 

	D.	 If an FHCF reimbursement amount is based on the Company’s losses in more than one Loss Occurrence commencing during the Term of this Agreement, and the
FHCF does not designate the amount allocable to each Loss Occurrence, the FHCF reimbursement amount shall be prorated in the proportion that the Company’s losses in each Loss Occurrence bear to the Company’s total losses arising out of all
Loss Occurrences to which the FHCF reimbursement applies. 

 ARTICLE VII – RATE AND PREMIUM 

 

	A.	 As premium for each excess layer of reinsurance coverage provided by this Agreement, the Company shall pay the Reinsurer the greater of the following:

  

	 	1.	 The amount, shown as “Minimum Premium” for that excess layer in Schedule A attached hereto; or 

 

	 	2.	 The percentage, shown as “Exposure Rate” for that excess layer in Schedule A attached hereto, of the Company’s total insured value as of
September 30, 2010. 

  

	B.	 The Company shall pay the Reinsurer a deposit premium for each excess layer of the amount, shown as “Deposit Premium” for that excess layer in
Schedule A attached 

  

  

 
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hereto, payable in installment amounts and at the dates set forth in the “Deposit Payment Schedule” for each excess layer in Schedule A attached hereto. 

 

	C.	 As respects any excess layer hereunder, if the Company elects to reduce or terminate a Subscribing Reinsurer’s participation percentage in accordance
with paragraph C of the Term Article, the “Minimum Premium” as respects such excess layer shall not apply. Further, the earned reinsurance premium as otherwise determined in accordance with the provisions of subparagraph 2 of paragraph A
above as respects each excess layer shall be replaced with the following: 

  

	 	1.	 In the event a loss occurs prior to the effective date of reduction or termination and the Reinsurer’s liability for such Loss Occurrence exceeds the
“Deposit Premium” for such excess layer, the reinsurance premium for the Term of this Agreement for such excess layer shall equal the “Deposit Premium” for such excess layer times the ratio the loss recoverable under such excess
layer bears to the “Reinsurer’s Per Occurrence Limit” for such excess layer. 

  

	 	2.	 In the event no loss occurs prior to the effective date of reduction or termination or a loss occurs whereby the Reinsurer’s liability for such loss
occurrence is less than the “Deposit Premium” applicable to such excess layer, the reinsurance premium for the Term of this Agreement for such excess layer shall equal the pro rata portion of the reinsurance premium otherwise due hereunder
for such excess layer based on the proportion the Term of this Agreement bears to the original 12-month term of this Agreement. 

  

	D.	 No later than April 1, 2011 (or the effective date of termination in the event this Agreement is terminated prior to April 1, 2011), the Company
shall provide a report to the Reinsurer setting forth the premium due under each excess layer hereunder, computed in accordance with paragraph A or C (as applicable) above, and any amounts due either party shall be remitted promptly.

 ARTICLE VIII – DEFINITIONS 
  

	A.	 The term “Ultimate Net Loss” as used herein shall be defined as the sum or sums (including Loss in Excess of Policy Limits, Extra Contractual
Obligations and Loss Adjustment Expense, as hereinafter defined) paid or payable by the Company in settlement of claims and in satisfaction of judgments rendered on account of such claims after deduction of all salvage, all recoveries, and all
claims on inuring insurance or reinsurance, whether collectible or not. Nothing herein shall be construed to mean that losses under this Agreement are not recoverable until the Company’s Ultimate Net Loss has been ascertained.

  

	B.	 The terms “Loss in Excess of Policy Limits” and “Extra Contractual Obligations” as used herein shall be defined as follows:

  

	 	1.	 “Loss in Excess of Policy Limits” shall mean 90.0% of any amount paid or payable by the Company in excess of its Policy limits, but otherwise within
the terms of its Policy, such loss in excess of the Company’s Policy limits having been 

  

  

 
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incurred because of, but not limited to, failure by the Company to settle within the Policy limits or by reason of the Company’s alleged or actual negligence, fraud or bad faith in rejecting
an offer of settlement or in the preparation of the defense or in the trial of an action against its insured or reinsured or in the preparation or prosecution of an appeal consequent upon such an action. 

 

	 	2.	 “Extra Contractual Obligations” shall mean 90.0% of any punitive, exemplary, compensatory or consequential damages paid or payable by the Company,
not covered by any other provision of this Agreement and which arise from the handling of any claim on business subject to this Agreement, such liabilities arising because of, but not limited to, failure by the Company to settle within the Policy
limits or by reason of the Company’s alleged or actual negligence, fraud or bad faith in rejecting an offer of settlement or in the preparation of the defense or in the trial of an action against its insured or reinsured or in the preparation
or prosecution of an appeal consequent upon such an action. An Extra Contractual Obligation shall be deemed, in all circumstances, to have occurred on the same date as the loss covered or alleged to be covered under the Policy.

 Notwithstanding anything stated herein, this Agreement shall not apply to any Loss in Excess of Policy
Limits or any Extra Contractual Obligation incurred by the Company as a result of any fraudulent and/or criminal act by any officer or director of the Company acting individually or collectively or in collusion with any individual or corporation or
any other organization or party involved in the presentation, defense or settlement of any claim covered hereunder. 

Further, any Loss in Excess of Policy Limits and/or Extra Contractual Obligations that are made in connection with this Agreement
shall not exceed 25.0% of the contractual loss under all Policies involved in the Loss Occurrence as respects each excess layer hereunder. 

Savings Clause (Applicable only if the Subscribing Reinsurer is domiciled in the State of New York): In no event shall coverage be
provided to the extent that such coverage is not permitted under New York law. 
  

	C.	 The term “Loss Adjustment Expense” as used herein shall be defined as expenses assignable to the investigation, appraisal, adjustment, settlement,
litigation, defense, and/or appeal of claims, regardless of how such expenses are classified for statutory reporting purposes. Loss Adjustment Expense shall include, but not be limited to, interest on judgments, expenses of outside adjusters,
expenses and a pro rata share of salaries of the Company’s field employees and expenses of other employees of the Company who have been temporarily diverted from their normal and customary duties and assigned to the adjustment of losses covered
by this Agreement, expenses of the Company’s officials incurred in connection with losses covered by this Agreement, and Declaratory Judgment Expenses or other legal expenses and costs incurred in connection with coverage questions and legal
actions connected thereto. Loss Adjustment Expense shall not include normal office expenses or salaries of the Company’s officials. 

  

  

 
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	D.	 The term “Declaratory Judgment Expense” as used herein shall be defined as the Company’s own costs and legal expense incurred in direct
connection with declaratory judgment actions brought to determine the Company’s defense and/or indemnification obligations that are assignable to specific claims arising out of Policies reinsured by this Agreement, regardless of whether the
declaratory judgment action is successful or unsuccessful. Any Declaratory Judgment Expense shall be deemed to have been fully incurred by the Company on the same date as the original loss (if any) giving rise to the action.

  

	E.	 “Term of this Agreement” as used herein shall be defined as the period from 12:01 a.m., Local Standard Time, June 1, 2010 through 12:01 a.m.,
Local Standard Time, June 1, 2011. However, if this Agreement is terminated, “Term of this Agreement” as used herein shall mean the period from 12:01 a.m., Local Standard Time, June 1, 2010 until the effective time and date of
termination. 

 ARTICLE IX – LOSS OCCURRENCE DEFINITION 

 

	A.	 The term “Loss Occurrence” shall mean the sum of all individual losses directly occasioned by any one disaster, accident or loss or series of
disasters, accidents or losses arising out of one event which occurs within the area of one state of the United States or province of Canada and states or provinces contiguous thereto and to one another. However, the duration and extent of any one
Loss Occurrence shall be limited to all individual losses sustained by the Company occurring during any period of 168 consecutive hours arising out of and directly occasioned by the same event except that the term Loss Occurrence shall be further
defined as follows: 

  

	 	1.	 As regards windstorm, hail, tornado, hurricane, cyclone, including ensuing collapse and water damage, all individual losses sustained by the Company occurring
during any period of 96 consecutive hours arising out of and directly occasioned by the same event. However, the event need not be limited to one state or province or states or provinces contiguous thereto. 

 

	 	2.	 As regards riot, riot attending a strike, civil commotion, vandalism and malicious mischief, all individual losses sustained by the Company occurring during
any period of 96 consecutive hours within the area of one municipality or county and the municipalities or counties contiguous thereto arising out of and directly occasioned by the same event. The maximum duration of 96 consecutive hours may be
extended in respect of individual losses which occur beyond such 96 consecutive hours during the continued occupation of an assured’s premises by strikers, provided such occupation commenced during the aforesaid period.

  

	 	3.	 As regards earthquake (the epicenter of which need not necessarily be within the territorial confines referred to in the opening paragraph of this Article)
and fire following directly occasioned by the earthquake, only those individual fire losses which commence during the period of 168 consecutive hours may be included in the Company’s Loss Occurrence. 

 

  

 
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	 	4.	 As regards freeze, only individual losses directly occasioned by collapse, breakage of glass and water damage (caused by bursting of frozen pipes and tanks)
may be included in the Company’s Loss Occurrence. 

  

	 	5.	 As regards firestorms, brush fires and any other fires or series of fires, irrespective of origin (except as provided in subparagraphs 2 and 3 above), which
spread through trees, grassland or other vegetation, all individual losses sustained by the Company which occur during any period of 168 consecutive hours within the area of one state of the United States or province of Canada and states or
provinces contiguous thereto and to one another may be included in the Company’s Loss Occurrence. 

  

	B.	 For all Loss Occurrences the Company may choose the date and time when any such period of consecutive hours commences provided that it is not earlier than the
date and time of the occurrence of the first recorded individual loss sustained by the Company arising out of that disaster, accident or loss and provided that only one such period of 168 consecutive hours shall apply with respect to one event,
except for any Loss Occurrence referred to in subparagraph 1 or 2 of paragraph A above where only one such period of 96 consecutive hours shall apply with respect to one event, regardless of the duration of the event. 

 

	C.	 No individual losses occasioned by an event that would be covered by the 96 hours clauses may be included in any Loss Occurrence claimed under the 168 hours
provision. 

 ARTICLE X – ACCESS TO RECORDS 

The Reinsurer or its designated representatives shall have access to the books and records of the Company on matters relating to this reinsurance at
all reasonable times, and at the location where such books and records are maintained in the ordinary course of business, for the purpose of obtaining information concerning this Agreement or the subject matter thereof. Notification of a request for
inspection of records shall be sent to the Company by the Reinsurer in written form, and shall normally be given four weeks in advance. Notwithstanding the above, the Reinsurer shall not have any right of access to the Records of the Company if it
is not current in all undisputed payments due the Company. 
 ARTICLE XI – AGENCY (BRMA 73A) 

If more than one reinsured company is named as a party to this Agreement, the first named company shall be deemed the agent of the other reinsured
companies for purposes of sending or receiving notices required by the terms and conditions of this Agreement, and for purposes of remitting or receiving any monies due any party. 

ARTICLE XII – ARBITRATION 
  

	A.	 As a condition precedent to any right of action hereunder, in the event of any dispute or difference of opinion hereafter arising with respect to this
Agreement, it is hereby mutually agreed that such dispute or difference of opinion shall be submitted to arbitration. One Arbiter shall be chosen by the Company, the other by the Reinsurer,

  

  

 
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and an Umpire shall be chosen by the two Arbiters before they enter upon arbitration, all of whom shall be active or retired disinterested executive officers of insurance or reinsurance companies
or Lloyd’s of London Underwriters. In the event that either party should fail to choose an Arbiter within 30 days following a written request by the other party to do so, the requesting party may choose two Arbiters who shall in turn choose an
Umpire before entering upon arbitration. If the two Arbiters fail to agree upon the selection of an Umpire within 30 days following their appointment, the two Arbiters shall request the American Arbitration Association to appoint the Umpire. If the
American Arbitration Association fails to appoint the Umpire within 30 days after it has been requested to do so, either party may request a justice of a Court of general jurisdiction of the state in which the arbitration is to be held to appoint
the Umpire. 

  

	B.	 Each party shall present its case to the Arbiters within 30 days following the date of appointment of the Umpire. The Arbiters shall consider this Agreement
as an honorable engagement rather than merely as a legal obligation and they are relieved of all judicial formalities and may abstain from following the strict rules of law. The decision of the Arbiters shall be final and binding on both parties;
but failing to agree, they shall call in the Umpire and the decision of the majority shall be final and binding upon both parties. Judgment upon the final decision of the Arbiters may be entered in any court of competent jurisdiction.

  

	C.	 If more than one reinsurer is involved in the same dispute, all such reinsurers shall constitute and act as one party for purposes of this Article and
communications shall be made by the Company to each of the reinsurers constituting one party, provided, however, that nothing herein shall impair the rights of such reinsurers to assert several, rather than joint, defenses or claims, nor be
construed as changing the liability of the reinsurers participating under the terms of this Agreement from several to joint. 

  

	D.	 Each party shall bear the expense of its own Arbiter, and shall jointly and equally bear with the other the expense of the Umpire and of the arbitration. In
the event that the two Arbiters are chosen by one party, as above provided, the expense of the Arbiters, the Umpire and the arbitration shall be equally divided between the two parties. 

 

	E.	 Any arbitration proceedings shall take place in Clearwater, Florida; however, the location may be changed if mutually agreed upon by the parties of this
Agreement. Notwithstanding the location of arbitration, all proceedings pursuant hereto shall be governed by the law of the State of Florida. 

ARTICLE XIII – CONFIDENTIALITY 

The Reinsurer agrees to regard the terms of this Agreement and any confidential, proprietary information relating thereto as confidential and shall
affect the same prudence and care afforded to its own confidential, proprietary information. The Reinsurer further agrees that it shall not disclose any of such information to any third party without the prior written consent of the Company except
as may be required by applicable law or regulation, or by legal process (including without limitation as may be required by United States Federal tax law or regulation), or to the auditors, professional advisors, accountants, retrocessionaires,
directors or officers 
  

  

 
 Page 11 of 20 

 

 

 
with a reasonable need to know such information. This Article is not intended to restrict or limit the conduct of the Reinsurer’s current or proposed business. 

ARTICLE XIV – CURRENCY (BRMA 12A) 
  

	A.	 Whenever the word “Dollars” or the “$” sign appears in this Agreement, they shall be construed to mean United States Dollars and all
transactions under this Agreement shall be in United States Dollars. 

  

	B.	 Amounts paid or received by the Company in any other currency shall be converted to United States Dollars at the rate of exchange at the date such transaction
is entered on the books of the Company. 

 ARTICLE XV – ENTIRE AGREEMENT 

This written Agreement constitutes the entire agreement between the parties hereto with respect to the business being reinsured hereunder, and there
are no understandings between the parties hereto other than as expressed in this Agreement. Any change or modification to this Agreement will be made by amendment to this Agreement and signed by the parties hereto. 

ARTICLE XVI – ERRORS AND OMISSIONS (BRMA 14F) 

Inadvertent delays, errors or omissions made in connection with this Agreement or any transaction hereunder shall not relieve either party from any
liability which would have attached had such delay, error or omission not occurred, provided always that such error or omission is rectified as soon as possible after discovery. 

ARTICLE XVII – FEDERAL EXCISE TAX (BRMA 17D) 
  

	A.	 The Reinsurer has agreed to allow for the purpose of paying the Federal Excise Tax the applicable percentage of the premium payable hereon (as imposed under
Section 4371 of the Internal Revenue Code) to the extent such premium is subject to the Federal Excise Tax. 

  

	B.	 In the event of any return of premium becoming due hereunder, the Reinsurer will deduct the applicable percentage from the return premium payable hereon and
the Company or its agent should take steps to recover the tax from the United States Government. 

 ARTICLE XVIII – FUNDING
OF RESERVES 
  

	A.	 The Reinsurer agrees to fund its share of the Company’s ceded unearned premium (including, but not limited to, the unearned portion of any deposit
premium installment) and outstanding loss and Loss Adjustment Expense reserves (including all case reserves plus any reasonable amount estimated to be unreported from known Loss Occurrences) by: 

 

  

 
 Page 12 of 20 

 

 

	 	1.	 Clean, irrevocable and unconditional letter of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a
bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or 

 

	 	2.	 Escrow accounts for the benefit of the Company; and/or 

  

	 	3.	 Cash advances; 

if the Reinsurer: 
  

	 	1.	 Is unauthorized in any state of the United States of America or the District of Columbia having jurisdiction over the Company and if, without such funding, a
penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved; or 

  

	 	2.	 Has experienced any of the circumstances described in paragraph C of the Term Article. However, if such circumstance is rectified, then no special funding
requirements shall apply and any such current funding in accordance with the provisions above shall be released to the Reinsurer. 

For purposes of this Agreement, the Lloyd’s United States Credit for Reinsurance Trust Fund shall be considered an acceptable
funding instrument. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved. 

 

	B.	 If a Subscribing Reinsurer fails to fulfill its funding obligation (if any) under this Article, the Company may, at its option, require the Subscribing
Reinsurer to pay, and the Subscribing Reinsurer agrees to pay, any interest charge on the funding obligation calculated on the last business day of each month as follows: 

 

	 	1.	 The number of full days that have expired since the earliest of the applicable following dates: 

 

	 	a.	 As respects a Subscribing Reinsurer that is unauthorized in any state of the United States of America or District of Columbia having jurisdiction over the
Company, December 31 of the calendar year in which the funding was required; 

  

	 	b.	 As respects a Subscribing Reinsurer that has experienced any of the circumstances described in paragraph C of the Term Article, the first date such
circumstance occurs; 

 times: 

 

  

 
 Page 13 of 20 

 

 

	 	2.	 1/365ths of the sum of 2.0% and the U.S. prime rate as quoted in The Wall Street Journal on the first day of the month for which the calculation is
made; times 

  

	 	3.	 The funding obligation, less the amount, if any, funded by the Subscribing Reinsurer prior to the applicable date determined in subparagraph 1 above.

 It is agreed that interest shall accumulate until the full interest charge amount as provided for in
this paragraph and the funding obligation are paid. 
 If the interest rate provided under this Article exceeds the maximum
interest rate allowed by any applicable law or is held unenforceable by an arbitrator or a court of competent jurisdiction, such interest rate shall be modified to the highest rate permitted by the applicable law, and all remaining provisions of
this Article and Agreement shall remain in full force and effect without being impaired or invalidated in any way. 
  

	C.	 With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory
authorities involved, will be issued for a term of at least one year and will involve an “evergreen clause,” which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal
is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Agreement, that said letter of credit may be drawn upon by the Company or its
successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes: 

 

	 	1.	 To reimburse itself for the Reinsurers’ share of losses and/or Loss Adjustment Expense paid under the terms of Policies reinsured hereunder, unless paid
in cash by the Reinsurer; 

  

	 	2.	 To reimburse itself for the Reinsurer’s share of any other amounts claims to be due hereunder, unless paid in cash by the Reinsurer;

  

	 	3.	 To fund a cash account in an amount equal to the Reinsurer’s share of any ceded unearned premium and/or outstanding loss and Loss Adjustment Expense
reserves (including all case reserves plus any reasonable amount estimated to be unreported for known Loss Occurrences) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or
replaced by the Reinsurer 10 days prior to its expiration date; 

  

	 	4.	 To refund to the Reinsurer any sums in excess of the actual amount required to fund the Reinsurer’s share of the Company’s ceded unearned premium
and/or outstanding loss and Loss Adjustment Expense reserves (including all case reserves plus any reasonable amount estimated to be unreported from known Loss Occurrences), if so requested by the Reinsurer; and 

 

  

 
 Page 14 of 20 

 

 

	 	5.	 To reimburse itself for the Reinsurer’s portion of the unearned reinsurance premium paid to the Reinsurer hereunder. 

In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for C(1), C(3), or
C(5), or in the case of C(2), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn. 

ARTICLE XIX – GOVERNING LAW (BRMA 71B) 

This Agreement shall be governed by and construed in accordance with the laws of the State of Florida. 

ARTICLE XX – INSOLVENCY 
  

	A.	 In the event of the insolvency of one or more of the reinsured companies, this reinsurance shall be payable directly to the company or to its liquidator,
receiver, conservator or statutory successor on the basis of the liability of the company without diminution because of the insolvency of the company or because the liquidator, receiver, conservator or statutory successor of the company has failed
to pay all or a portion of any claim. It is agreed, however, that the liquidator, receiver, conservator or statutory successor of the company shall give written notice to the Reinsurer of the pendency of a claim against the company indicating the
policy or bond reinsured which claim would involve a possible liability on the part of the Reinsurer within a reasonable time after such claim is filed in the conservation or liquidation proceeding or in the receivership, and that during the
pendency of such claim, the Reinsurer may investigate such claim and interpose, at its own expense, in the proceeding where such claim is to be adjudicated, any defense or defenses that it may deem available to the company or its liquidator,
receiver, conservator or statutory successor. The expense thus incurred by the Reinsurer shall be chargeable, subject to the approval of the Court, against the company as part of the expense of conservation or liquidation to the extent of a pro rata
share of the benefit which may accrue to the company solely as a result of the defense undertaken by the Reinsurer. 

  

	B.	 Where two or more Reinsurers are involved in the same claim and a majority in interest elect to interpose defense to such claim, the expense shall be
apportioned in accordance with the terms of this Agreement as though such expense had been incurred by the company. 

  

	C.	 It is further understood and agreed that, in the event of the insolvency of one or more of the reinsured companies, the reinsurance under this Agreement shall
be payable directly by the Reinsurer to the company or to its liquidator, receiver or statutory successor, except as provided by Section 4118(a) of the New York Insurance Law or except (1) where this Agreement specifically provides another
payee of such reinsurance in the event of the insolvency of the company or (2) where the Reinsurer with the consent of the direct insured or insureds has assumed such Policy obligations of the company as direct obligations of the Reinsurer to
the payees under such Policies and in substitution for the obligations of the company to such payees. 

  

  

 
 Page 15 of 20 

 

 

 ARTICLE XXI – LATE PAYMENTS 

 

	A.	 The interest penalties provided for in this Article shall apply to the Reinsurer or to the Company in the following circumstances:

  

	 	1.	 Payments due from the Reinsurer to the Company shall have as a due date the date on which the agreed proof of loss is received by the Reinsurer, and shall be
overdue 30 days thereafter. Payment to the Intermediary is deemed to be payment to the Company for purposes of this Article. 

  

	 	2.	 Payments due from the Company to the Reinsurer shall have as a due date the date specified in this Agreement. Payments shall be overdue 30 days thereafter.
Premium adjustments shall be overdue 30 days following the due date set forth under the terms of this Agreement. 

  

	 	3.	 The Company shall provide a copy of the original insured’s proof of loss, and a copy of the claim adjuster’s report(s) or other evidence of
indemnification for losses exceeding the excess limit on an incurred basis. If, subsequent to receipt of this evidence, the information contained therein is insufficient or not in accordance with the contractual conditions, then the payment due date
as defined in paragraph A shall be deemed to be the date upon which the Reinsurer received additional information necessary to approve payment of the claim or the claim is presented in an acceptable manner. Interest as stipulated in paragraph D
shall be payable should a disputed claim be ultimately settled and if the period set out in paragraph A is exceeded, but only to the extent that the final loss payment exactly tracks with the original proof of loss. 

 

	 	4.	 Overdue amounts shall bear simple interest from the overdue date at the 90-day United States Treasury Bill rate set forth by the Federal Reserve Board for the
first Monday of the calendar month in which the amount becomes overdue, as published in the Federal Reserve Statistical Release. If the interest generated for 100% in respect of any overdue payment as outlined in paragraph A or B is $500 or less,
then the interest penalty shall be waived. 

  

	 	5.	 For the purposes of this Article, reinsuring Lloyd’s Underwriters shall be viewed as one entity. The provisions set forth herein shall not be applicable
until the creditor party shall have manifested to the debtor party its intent to invoke the terms of this Article. 

 ARTICLE XXII
– LIABILITY OF THE REINSURER 
 The liability of the Reinsurer shall follow that of the Company in every case and be subject
in all respects to all the general and specific stipulations, clauses, waivers, interpretations and modifications of the Company’s Policies and any endorsements thereon. However, in no event shall this be construed in any way to provide
coverage outside the terms and conditions set forth in this Agreement. 
  

  

 
 Page 16 of 20 

 

 

 Nothing herein shall in any manner create any obligations or establish any rights against the
Reinsurer in favor of any third party or any persons not parties to this Agreement. 
 ARTICLE XXIII – LOSS NOTICE AND SETTLEMENTS 

  

	A.	 Whenever losses sustained by the Company appear likely to result in a claim hereunder, the Company shall notify the Reinsurer, and the Reinsurer shall have
the right to participate in the adjustment of such losses at its own expense. 

  

	B.	 All loss settlements made by the Company, provided they are within the terms of this Agreement, shall be binding upon the Reinsurer, and the Reinsurer agrees
to pay all amounts for which it may be liable upon receipt of reasonable evidence of the amount paid (or scheduled to be paid within 14 days) by the Company. Notwithstanding the foregoing, should any judicial, regulatory, or legislative entity
having legal jurisdiction require that the Company be liable for any amounts that are otherwise outside the terms of the Company’s original Policies, the Reinsurer agrees that such amounts shall be subject always to the terms and conditions of
this Agreement. 

 ARTICLE XXIV – NET RETAINED LINES (BRMA 32E) 

 

	A.	 This Agreement applies only to that portion of any Policy which the Company retains net for its own account (prior to deduction of any underlying reinsurance
specifically permitted in this Agreement), and in calculating the amount of any loss hereunder and also in computing the amount or amounts in excess of which this Agreement attaches, only loss or losses in respect of that portion of any Policy which
the Company retains net for its own account shall be included. 

  

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

ARTICLE XXV – NON-WAIVER 
 The
failure of the Company or the Reinsurer to insist on compliance with this Agreement or to exercise any right or remedy hereunder shall not constitute a waiver of any rights or remedies contained herein nor stop either party from thereafter demanding
full and complete compliance nor prevent either party from exercising such rights or remedies in the future. 
 ARTICLE XXVI – NOTICES AND
AGREEMENT EXECUTION 
  

	A.	 Whenever a notice, statement, report or any other written communication is required by this Agreement, unless otherwise specified, such notice, statement,
report or other written communication may be transmitted by certified or registered mail, nationally or internationally recognized express delivery service, personal delivery, electronic mail, or facsimile. With the exception of notices of
termination, first class mail is also acceptable. 

  

  

 
 Page 17 of 20 

 

 

	B.	 The use of any of the following shall constitute a valid execution of this Agreement or any amendments thereto: 

 

	 	1.	 Paper documents with an original ink signature; 

  

	 	2.	 Facsimile or electronic copies of paper documents showing an original ink signature; and/or 

 

	 	3.	 Electronic records with an electronic signature made via an electronic agent. For the purposes of this Agreement, the terms “electronic record,”
“electronic signature” and “electronic agent” shall have the meanings set forth in the Electronic Signatures in Global and National Commerce Act of 2000 or any amendments thereto. 

 

	C.	 This Agreement may be executed in one or more counterparts, each of which, when duly executed, shall be deemed an original. 

ARTICLE XXVII – OFFSET (BRMA 36E) 

The Company and the Reinsurer, each at its option, may offset any balance or balances, whether on account of premiums, claims and losses, Loss
Adjustment Expenses or salvages due from one party to the other under this Agreement or under any other reinsurance agreement heretofore or hereafter entered into between the Company and the Reinsurer, whether acting as assuming reinsurer or as
ceding company; provided, however, that in the event of the insolvency of a party hereto, offsets shall only be allowed in accordance with applicable statutes and regulations. 

ARTICLE XXVIII – OTHER REINSURANCE 

The Company shall be permitted to carry other reinsurance, recoveries under which shall inure solely to the benefit of the Company and be entirely
disregarded in applying all of the provisions of this Agreement. 
 ARTICLE XXIX – SALVAGE AND SUBROGATION 

The Reinsurer shall be credited with salvage (i.e. reimbursement obtained or recovery made by the Company, less the actual cost, excluding salaries
of officials and employees of the Company and sums paid to attorneys as a retainer, of obtaining such reimbursement or making such recovery) on account of claims and settlements involving reinsurance hereunder. Salvage thereon shall always be used
to reimburse the excess carriers in the reverse order of their priority according to their participation before being used in any way to reimburse the Company for its primary loss. The Company hereby agrees to enforce its rights to salvage and
subrogation relating to any loss, a part of which loss was sustained by the Reinsurer, and to prosecute all claims arising out of such rights if, in the Company’s opinion, it is economically reasonable to do so. Should the Company neglect or
refuse to enforce such rights, the Reinsurer is hereby empowered and authorized to institute the appropriate action in the name of the Company, at the Reinsurer’s expense. 

 

  

 
 Page 18 of 20 

 

 

 ARTICLE XXX – SERVICE OF SUIT (BRMA 49G) 

(Applicable if the Reinsurer is not domiciled in the United States of America, and/or is not authorized in any State, Territory, or District of the
United States where authorization is required by insurance regulatory authorities) 
  

	A.	 This Article will not be read to conflict with or override the obligations of the parties to arbitrate their disputes as provided for in the Arbitration
Article. This Article is intended as an aid to compelling arbitration or enforcing such arbitration or arbitral award, not as an alternative to the Arbitration Article for resolving disputes arising out of this Agreement.

  

	B.	 In the event the Reinsurer fails to pay any amount claimed to be due hereunder, the Reinsurer, at the request of the Company, will submit to the jurisdiction
of a court of competent jurisdiction within the United States. Nothing in this Article constitutes or should be understood to constitute a waiver of the Reinsurer’s rights to commence an action in any court of competent jurisdiction in the
United States, to remove an action to a United States District Court, or to seek a transfer of a case to another court as permitted by the laws of the United States or of any state in the United States. The Reinsurer, once the appropriate Court is
accepted by the Reinsurer or is determined by removal, transfer or otherwise, as provided for above, will comply with all requirements necessary to give said Court jurisdiction and, in any suit instituted against any of the Subscribing Reinsurers
upon this Agreement, will abide by the final decision of such Court or of any Appellate Court in the event of an appeal. 

  

	C.	 Further, pursuant to any statute of any state, territory or district of the United States which makes provision therefor, the Reinsurer hereby designates the
party named in its Interests and Liabilities Contract, or if no party is named therein, the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute, or his or her successor or successors in
office, as its true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the Company or any beneficiary hereunder arising out of this Agreement. 

ARTICLE XXXI – SEVERABILITY (BRMA 72E) 

If any provision of this Agreement shall be rendered illegal or unenforceable by the laws, regulations or public policy of any state, such provision
shall be considered void in such state, but this shall not affect the validity or enforceability of any other provision of this Agreement or the enforceability of such provision in any other jurisdiction. 

ARTICLE XXXII – TAXES 
 In
consideration of the terms under which this Agreement is issued, the Company will not claim a deduction in respect of the premium hereon when making tax returns, other than income or profits tax returns, to any state or territory of the United
States of America or the District of Columbia. 
  

  

 
 Page 19 of 20 

 

 

 ARTICLE XXXIII – TERRITORY 

The liability of the Reinsurer shall be limited to losses under Policies covering property located within the territorial limits of the State of
Florida; but this limitation shall not apply to moveable property if the Company’s Policies provide coverage when said moveable property is outside the aforementioned territorial limits. 

ARTICLE XXXIV – INTERMEDIARY (BRMA 23A) 

TigerRisk Partners LLC is hereby recognized as the Intermediary negotiating this Agreement for all business hereunder. All communications
(including, but not limited to, notices, statements, premium, return premium, commissions, taxes, losses, Loss Adjustment Expense, salvages and loss settlements) relating thereto shall be transmitted to the Company or the Reinsurer through TigerRisk
Partners LLC, 7601 France Avenue South, Suite 200, Edina, MN 55435. Payments by the Company to the Intermediary shall be deemed to constitute payment to the Reinsurer. Payments by the Reinsurer to the Intermediary shall be deemed to constitute
payment to the Company only to the extent that such payments are actually received by the Company. 
 IN WITNESS WHEREOF, the
Company by its duly authorized representative has executed this Agreement as of the date undermentioned at: 
 Clearwater, Florida, this
                             day of
                                         
                                         
                       2010. 
  

	
	
	  
	HOMEOWNERS CHOICE PROPERTY & CASUALTY
	INSURANCE COMPANY (for and on behalf of the “Company”)

 

  

 
 Page 20 of 20 

 

 

 SCHEDULE A 

EXCESS CATASTROPHE 

REINSURANCE AGREEMENT 

EFFECTIVE:  JUNE 1, 2010 

issued to 
 HOMEOWNERS CHOICE 

 PROPERTY & CASUALTY INSURANCE COMPANY 

Clearwater, Florida 
  

					
	 	  	 Excess

Layer 1
	 	 Excess

Layer 2

			
	 Company’s Retention
	  	$17,250,000	 	$46,250,000
			
	 Reinsurer’s Per Occurrence Limit
	  	$29,000,000	 	$28,750,000
			
	 Reinsurer’s Agreement Limit
	  	$29,000,000	 	$57,500,000
			
	 Minimum Premium
	  	$*****	 	$*****
			
	 Deposit Premium
	  	$*****	 	$*****
			
	 Deposit Payment Schedule
	  	$***** payable on
June 1, 2010;
$***** payable on
October 1, 2010	 	$***** payable
on June 1 and
September 1, 2010;
$***** payable
on January 1, and
April 1, 
2011
			
	 Exposure Rate
	  	*****%	 	*****%

 The figures listed above for each
excess layer shall apply to each Subscribing Reinsurer in the percentage share for that excess layer expressed in its Interests and Liabilities Contract attached hereto. 
  

  

 

 

 

  

	*****	 Portions of this exhibit marked by ***** have been omitted pursuant to a request for confidential treatment and have been filed separately with the Securities
and Exchange Commission. 

 NUCLEAR INCIDENT EXCLUSION CLAUSE-PHYSICAL DAMAGE-REINSURANCE (U.S.A.) 

 

	1.	This Reinsurance does not cover any loss or liability accruing to the Reassured, directly or indirectly and whether as Insurer or Reinsurer, from any Pool of Insurers or
Reinsurers formed for the purpose of covering Atomic or Nuclear Energy risks. 

  

	2.	Without in any way restricting the operation of paragraph (1) of this Clause, this Reinsurance does not cover any loss or liability accruing to the Reassured, directly or
indirectly and whether as Insurer or Reinsurer, from any insurance against Physical Damage (including business interruption or consequential loss arising out of such Physical Damage) to: 

 

	 	I.	Nuclear reactor power plants including all auxiliary property on the site, or 

  

	 	II.	Any other nuclear reactor installation, including laboratories handling radioactive materials in connection with reactor installations, and “critical facilities” as
such, or 

  

	 	III.	Installations for fabricating complete fuel elements or for processing substantial quantities of “special nuclear material”, and for reprocessing, salvaging, chemically
separating, storing or disposing of “spent” nuclear fuel or waste materials, or 

  

	 	IV.	Installations other than those listed in paragraph (2) III above using substantial quantities of radioactive isotopes or other products of nuclear fission.

  

	3.	Without in any way restricting the operations of paragraphs (1) and (2) hereof, this Reinsurance does not cover any loss or liability by radioactive contamination
accruing to the Reassured, directly or indirectly, and whether as Insurer or Reinsurer, from any insurance on property which is on the same site as a nuclear reactor power plant or other nuclear installation and which normally would be insured
therewith except that this paragraph (3) shall not operate 

  

	 	(a)	where Reassured does not have knowledge of such nuclear reactor power plant or nuclear installation, or 

 

	 	(b)	where said insurance contains a provision excluding coverage for damage to property caused by or resulting from radioactive contamination, however caused. However on and after
1st January 1960 this sub-paragraph (b) shall only apply provided the said radioactive contamination exclusion provision has been approved by the Governmental Authority having jurisdiction thereof. 

 

	4.	Without in any way restricting the operations of paragraphs (1), (2) and (3) hereof, this Reinsurance does not cover any loss or liability by radioactive contamination
accruing to the Reassured, directly or indirectly, and whether as Insurer or Reinsurer, when such radioactive contamination is a named hazard specifically insured against. 

 

	5.	It is understood and agreed that this Clause shall not extend to risks using radioactive isotopes in any form where the nuclear exposure is not considered by the Reassured to be
the primary hazard. 

  

	6.	The term “special nuclear material” shall have the meaning given it in the Atomic Energy Act of 1954 or by any law amendatory thereof. 

 

	7.	Reassured to be sole judge of what constitutes: 

  

	 	(a)	substantial quantities, and 

  

	 	(b)	the extent of installation, plant or site. 

Note. - Without in any way restricting the operation of paragraph (1) hereof, it is understood and agreed that 

 

	 	(a)	all policies issued by the Reassured on or before 31st December 1957 shall be free from the application of the other provisions of this Clause until expiry date or
31st December 1960 whichever first occurs whereupon all the provisions of this Clause shall apply. 

  

	 	(b)	with respect to any risk located in Canada policies issued by the Reassured on or before 31st December 1958 shall be free from the application of the other provisions of
this Clause until expiry date or 31st December 1960 whichever first occurs whereupon all the provisions of this Clause shall apply. 

12/12/57 
 N.M.A. 1119

 BRMA 35BReinstatement Premium Protection Agreeement effective 6/1/2010

 EXHIBIT 10.14 

REINSTATEMENT PREMIUM PROTECTION AGREEMENT 

HOMEOWNERS CHOICE 

PROPERTY & CASUALTY INSURANCE COMPANY 

Clearwater, Florida 
 and 

any other insurance companies which are now or 

hereafter come under the ownership, control or management of 

Homeowners Choice, Inc. 

EFFECTIVE:    June 1, 2010 

EXPIRATION:  June 1, 2011 
  

 
  

 

	****	 Portions of this exhibit marked by **** have been omitted pursuant to a request for confidential treatment and have been filed separately with the Securities
and Exchange Commission. 

 REINSTATEMENT PREMIUM PROTECTION AGREEMENT 

TABLE OF CONTENTS 
  

					
	ARTICLE	    	            DESCRIPTION	  	PAGE
			
	 I
	    	 BUSINESS COVERED
	  	1  
	 II
	    	 TERM
	  	1  
	 III
	    	 CONCURRENCY OF CONDITIONS
	  	3  
	 IV
	    	 RATE AND PREMIUM
	  	3  
	 V
	    	 LOSS NOTICES AND SETTLEMENTS
	  	4  
	 VI
	    	 ACCESS TO RECORDS
	  	4  
	 VII
	    	 AGENCY (BRMA 73A)
	  	4  
	 VIII
	    	 ARBITRATION
	  	4  
	 IX
	    	 CONFIDENTIALITY
	  	5  
	 X
	    	 CURRENCY (BRMA 12A)
	  	6  
	 XI
	    	 ENTIRE AGREEMENT
	  	6  
	 XII
	    	 ERRORS AND OMISSIONS (BRMA 14F)
	  	6  
	 XIII
	    	 FEDERAL EXCISE TAX (BRMA 17D)
	  	6  
	 XIV
	    	 FUNDING OF RESERVES
	  	6  
	 XV
	    	 GOVERNING LAW (BRMA 71B)
	  	9  
	 XVI
	    	 INSOLVENCY
	  	9  
	 XVII
	    	 LATE PAYMENTS
	  	10  
	 XVIII
	    	 NON-WAIVER
	  	11  
	 XIX
	    	 NOTICES AND AGREEMENT EXECUTION
	  	11  
	 XX
	    	 OFFSET (BRMA 36E)
	  	11  
	 XXI
	    	 SERVICE OF SUIT (BRMA 49G)
	  	11  
	 XXII
	    	 SEVERABILITY (BRMA 72E)
	  	12  
	 XXIII
	    	 TAXES
	  	12  
	 XXIV
	    	 INTERMEDIARY (BRMA 23A)
	  	12  

  

 
  

 REINSTATEMENT PREMIUM PROTECTION AGREEMENT 

issued to 
 HOMEOWNERS CHOICE 

 PROPERTY & CASUALTY INSURANCE COMPANY 

Clearwater, Florida 
 and 

any other insurance companies which are now or 

hereafter come under the ownership, control or management of 

Homeowners Choice, Inc. 
 (hereinafter
referred to collectively as the “Company”) 
 by 

The Subscribing Reinsurer(s) Executing the 

Interests and Liabilities Contract(s) 

Attached hereto 
 (hereinafter referred
to as the “Reinsurer”) 
 ARTICLE I – BUSINESS COVERED 

By this Agreement the Reinsurer agrees to indemnify the Company for 100% of any net reinstatement premium which the Company pays or becomes liable
to pay under the provisions of the second excess layer of the Company’s Excess Catastrophe Reinsurance Agreement, effective June 1, 2010 (hereinafter referred to as the “Original Contract”), subject to the terms, conditions and
limitations hereinafter set forth. 
 ARTICLE II – TERM 

 

	A.	 This Agreement shall become effective at 12:01 a.m., Local Standard Time, June 1, 2010, with respect to reinstatement premium payable by the Company
under the provisions of the Original Contract, and shall remain in force until 12:01 a.m., Local Standard Time, June 1, 2011. “Local Standard Time” as used herein shall mean local standard time at the location where the Loss
Occurrence commences. 

  

	B.	 Notwithstanding the provisions of paragraph A above, the Company may reduce or terminate a Subscribing Reinsurer’s percentage share in this Agreement at
any time by giving written notice to the Subscribing Reinsurer in the event any of the following circumstances occur. The effective date of reduction or termination shall be the date selected by the Company, which may be a date that is retroactively
applied up to a maximum of 65 days prior to the date of public announcement for subparagraphs 1 

  

  

 
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through 5 below or upon discovery for subparagraphs 6 through 8 below, subject to the condition that such selected date must be the last day of a calendar month: 

 

	 	1.	 The Subscribing Reinsurer’s policyholders’ surplus (or its equivalent under the Subscribing Reinsurer’s accounting system) as reported in such
financial statements of the Subscribing Reinsurer as designated by the Company, has been reduced by 20.0% of the amount of surplus (or the applicable equivalent) at any date during the prior 12-month period (including the 12-month period prior to
the inception of this Agreement); or 

  

	 	2.	 The Subscribing Reinsurer’s A.M. Best’s rating has been assigned or downgraded below A- and/or its Standard & Poor’s rating has been
assigned or downgraded below BBB+; or 

  

	 	3.	 The Subscribing Reinsurer has become merged with, acquired by or controlled by any other entity or unaffiliated individual(s) not controlling the Subscribing
Reinsurer’s operations at the inception of this Agreement; or 

  

	 	4.	 A State Insurance Department or other legal authority has ordered the Subscribing Reinsurer to cease writing business; or 

 

	 	5.	 The Subscribing Reinsurer has become insolvent or has been placed into liquidation, receivership, supervision, administration, winding-up or under a scheme of
arrangement, or similar proceedings (whether voluntary or involuntary) or proceedings have been instituted against the Subscribing Reinsurer for the appointment of a receiver, liquidator, rehabilitator, supervisor, administrator, conservator or
trustee in bankruptcy, or other agent known by whatever name, to take possession of its assets or control of its operations; or 

  

	 	6.	 The Subscribing Reinsurer has reinsured its entire liability under this Agreement without the Company’s prior written consent, except that this provision
shall not apply to any inter-company reinsurance or inter-company pooling arrangements entered into by the Subscribing Reinsurer; or 

  

	 	7.	 The Subscribing Reinsurer has ceased assuming new or renewal property and casualty treaty reinsurance business; or 

 

	 	8.	 The Subscribing Reinsurer has hired an unaffiliated runoff claims manager that is compensated on a contingent basis or is otherwise provided with financial
incentives based on the quantum of claims paid. 

  

	C.	 If the Company elects to terminate this Agreement in accordance with the provisions of paragraph B above, the premium due hereunder shall be pro rated based
on the Reinsurer’s period of participation under this Agreement and shall be due as promptly as possible following determination of the final adjusted reinsurance premium paid by the Company under the Original Contract.

  

  

 
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 ARTICLE III – CONCURRENCY OF CONDITIONS 

 

	A.	 It is agreed that this Agreement will follow those terms, conditions, exclusions, definitions, warranties and settlements of the Company under the Original
Contract, including any addenda thereto, which are not inconsistent with the provisions of this Agreement. 

  

	B.	 The Company shall advise the Reinsurer of any material changes in the Original Contract which may affect the liability of the Reinsurer under this Agreement.

 ARTICLE IV – RATE AND PREMIUM 
  

	A.	 As premium for the reinsurance coverage provided by this Agreement, the Company shall pay the Reinsurer the product of the following:

  

	 	1.	 ****; times 

  

	 	2.	 The Final Adjusted Rate on Line for the second excess layer under the Original Contract; times 

 

	 	3.	 An amount equal to the final adjusted premium paid by the Company for the second excess layer under the Original Contract. 

“Final Adjusted Rate on Line” as used herein shall mean an amount equal to the final adjusted premium paid by the Company
for the second excess layer under the Original Agreement divided by the Reinsurer’s Per Occurrence Limit for the second excess layer. 
  

	B.	 The Company shall pay the Reinsurer a deposit premium hereunder of $****, in three equal installments of $****, on June 1 and September 1 of
2010, and January 1, 2011. The Company shall pay the Reinsurer a fourth deposit premium installment on April 1, 2011 equal to the adjusted deposit premium hereunder, determined in accordance with paragraph C below. However, if this
Agreement is terminated, there will be no deposit premium installments due after the effective date of termination. 

  

	C.	 “Adjusted deposit premium” shall be equal to the following: 

 

	 	1.	 The premium due hereunder, computed in accordance with paragraph A above; less 

 

	 	2.	 The first, second and third deposit premium installments paid in accordance with paragraph B above. 

 

	D.	 On or before April 1, 2011, the Company shall provide a report to the Reinsurer setting forth the premium due hereunder, computed in accordance with
paragraph A above, and setting forth the adjusted deposit premium, computed in accordance with paragraph C above and any amount due either party shall be remitted promptly. 

 

  

 
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	****	 Omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission 

	E.	 “Agreement quarter” as used herein shall mean the period from June 1, 2010 through August 31, 2010, both days inclusive, and each
respective three-month period (or portion thereof) thereafter during the term of this Agreement. 

 ARTICLE V – LOSS NOTICES
AND SETTLEMENTS 
  

	A.	 Whenever reinstatement premium settlements are made by the Company under the second excess layer of the Original Contract, the Company shall notify the
Reinsurer. 

  

	B.	 All reinstatement premium settlements made by the Company under the Original Contract, provided they are within the terms of the Original Contract and within
the terms of this Agreement, shall be binding upon the Reinsurer, and the Reinsurer agrees to pay all amounts for which it may be liable upon receipt of reasonable evidence of the amount paid (or scheduled to be paid within 14 days) by the Company.

  

	C.	 As promptly as possible after the end of each agreement quarter, the Company shall report to the Reinsurer its reinstatement premiums paid during the
agreement quarter and its outstanding loss reserves (being the sum of all reinstatement premiums paid by the Company under the Original Contract but not yet recovered from the Reinsurer, plus the Company’s reserves for reinstatement premiums
due under the Original Contract, if any) as of the end of the agreement quarter on any reinstatement premiums reported to the Reinsurer in accordance with paragraph A above. This paragraph shall not apply to any agreement quarter in which there were
no loss payments subject to this Agreement. 

 ARTICLE VI – ACCESS TO RECORDS 

The Reinsurer or its designated representatives shall have access to the books and records of the Company on matters relating to this reinsurance at
all reasonable times, and at the location where such books and records are maintained in the ordinary course of business, for the purpose of obtaining information concerning this Agreement or the subject matter thereof. Notification of a request for
inspection of records shall be sent to the Company by the Reinsurer in written form, and shall normally be given four weeks in advance. Notwithstanding the above, the Reinsurer shall not have any right of access to the Records of the Company if it
is not current in all undisputed payments due the Company. 
 ARTICLE VII – AGENCY (BRMA 73A) 

If more than one reinsured company is named as a party to this Agreement, the first named company shall be deemed the agent of the other reinsured
companies for purposes of sending or receiving notices required by the terms and conditions of this Agreement, and for purposes of remitting or receiving any monies due any party. 

ARTICLE VIII – ARBITRATION 
  

	A.	 As a condition precedent to any right of action hereunder, in the event of any dispute or difference of opinion hereafter arising with respect to this
Agreement, it is hereby 

  

  

 
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mutually agreed that such dispute or difference of opinion shall be submitted to arbitration. One Arbiter shall be chosen by the Company, the other by the Reinsurer, and an Umpire shall be chosen
by the two Arbiters before they enter upon arbitration, all of whom shall be active or retired disinterested executive officers of insurance or reinsurance companies or Lloyd’s of London Underwriters. In the event that either party should fail
to choose an Arbiter within 30 days following a written request by the other party to do so, the requesting party may choose two Arbiters who shall in turn choose an Umpire before entering upon arbitration. If the two Arbiters fail to agree upon the
selection of an Umpire within 30 days following their appointment, the two Arbiters shall request the American Arbitration Association to appoint the Umpire. If the American Arbitration Association fails to appoint the Umpire within 30 days after it
has been requested to do so, either party may request a justice of a Court of general jurisdiction of the state in which the arbitration is to be held to appoint the Umpire. 

 

	B.	 Each party shall present its case to the Arbiters within 30 days following the date of appointment of the Umpire. The Arbiters shall consider this Agreement
as an honorable engagement rather than merely as a legal obligation and they are relieved of all judicial formalities and may abstain from following the strict rules of law. The decision of the Arbiters shall be final and binding on both parties;
but failing to agree, they shall call in the Umpire and the decision of the majority shall be final and binding upon both parties. Judgment upon the final decision of the Arbiters may be entered in any court of competent jurisdiction.

  

	C.	 If more than one reinsurer is involved in the same dispute, all such reinsurers shall constitute and act as one party for purposes of this Article and
communications shall be made by the Company to each of the reinsurers constituting one party, provided, however, that nothing herein shall impair the rights of such reinsurers to assert several, rather than joint, defenses or claims, nor be
construed as changing the liability of the reinsurers participating under the terms of this Agreement from several to joint. 

  

	D.	 Each party shall bear the expense of its own Arbiter, and shall jointly and equally bear with the other the expense of the Umpire and of the arbitration. In
the event that the two Arbiters are chosen by one party, as above provided, the expense of the Arbiters, the Umpire and the arbitration shall be equally divided between the two parties. 

 

	E.	 Any arbitration proceedings shall take place in Clearwater, Florida; however, the location may be changed if mutually agreed upon by the parties of this
Agreement. Notwithstanding the location of arbitration, all proceedings pursuant hereto shall be governed by the law of the State of Florida. 

ARTICLE IX – CONFIDENTIALITY 

The Reinsurer agrees to regard the terms of this Agreement and any confidential, proprietary information relating thereto as confidential and shall
affect the same prudence and care afforded to its own confidential, proprietary information. The Reinsurer further agrees that it shall not disclose any of such information to any third party without the prior written consent of the Company except
as may be required by applicable law or regulation, or by legal process 
  

  

 
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(including without limitation as may be required by United States Federal tax law or regulation), or to the auditors, professional advisors, accountants, retrocessionaires, directors or officers
with a reasonable need to know such information. This Article is not intended to restrict or limit the conduct of the Reinsurer’s current or proposed business. 

ARTICLE X – CURRENCY (BRMA 12A) 
  

	A.	 Whenever the word “Dollars” or the “$” sign appears in this Agreement, they shall be construed to mean United States Dollars and all
transactions under this Agreement shall be in United States Dollars. 

  

	B.	 Amounts paid or received by the Company in any other currency shall be converted to United States Dollars at the rate of exchange at the date such transaction
is entered on the books of the Company. 

 ARTICLE XI – ENTIRE AGREEMENT 

This written Agreement constitutes the entire agreement between the parties hereto with respect to the business being reinsured hereunder, and there
are no understandings between the parties hereto other than as expressed in this Agreement. Any change or modification to this Agreement will be made by amendment to this Agreement and signed by the parties hereto. 

ARTICLE XII – ERRORS AND OMISSIONS (BRMA 14F) 

Inadvertent delays, errors or omissions made in connection with this Agreement or any transaction hereunder shall not relieve either party from any
liability which would have attached had such delay, error or omission not occurred, provided always that such error or omission is rectified as soon as possible after discovery. 

ARTICLE XIII – FEDERAL EXCISE TAX (BRMA 17D) 
  

	A.	 The Reinsurer has agreed to allow for the purpose of paying the Federal Excise Tax the applicable percentage of the premium payable hereon (as imposed under
Section 4371 of the Internal Revenue Code) to the extent such premium is subject to the Federal Excise Tax. 

  

	B.	 In the event of any return of premium becoming due hereunder, the Reinsurer will deduct the applicable percentage from the return premium payable hereon and
the Company or its agent should take steps to recover the tax from the United States Government. 

 ARTICLE XIV – FUNDING OF
RESERVES 
  

	A.	 The Reinsurer agrees to fund its share of the Company’s ceded unearned premium (including, but not limited to, the unearned portion of any deposit
premium installment) and outstanding loss and Loss Adjustment Expense reserves (including all case reserves 

  

  

 
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plus any reasonable amount estimated to be unreported from known Loss Occurrences) by: 

  

	 	1.	 Clean, irrevocable and unconditional letter of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a
bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or 

 

	 	2.	 Escrow accounts for the benefit of the Company; and/or 

  

	 	3.	 Cash advances; 

if the Reinsurer: 
  

	 	1.	 Is unauthorized in any state of the United States of America or the District of Columbia having jurisdiction over the Company and if, without such funding, a
penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved; or 

  

	 	2.	 Has experienced any of the circumstances described in paragraph C of the Term Article. However, if such circumstance is rectified, then no special funding
requirements shall apply and any such current funding in accordance with the provisions above shall be released to the Reinsurer. 

For purposes of this Agreement, the Lloyd’s United States Credit for Reinsurance Trust Fund shall be considered an acceptable
funding instrument. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved. 

 

	B.	 If a Subscribing Reinsurer fails to fulfill its funding obligation (if any) under this Article, the Company may, at its option, require the Subscribing
Reinsurer to pay, and the Subscribing Reinsurer agrees to pay, any interest charge on the funding obligation calculated on the last business day of each month as follows: 

 

	 	1.	 The number of full days that have expired since the earliest of the applicable following dates: 

 

	 	a.	 As respects a Subscribing Reinsurer that is unauthorized in any state of the United States of America or District of Columbia having jurisdiction over the
Company, December 31 of the calendar year in which the funding was required; 

  

	 	b.	 As respects a Subscribing Reinsurer that has experienced any of the circumstances described in paragraph C of the Term Article, the first date such
circumstance occurs; 

  

  

 
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 times: 

 

	 	2.	 1/365ths of the sum of 2.0% and the U.S. prime rate as quoted in The Wall Street Journal on the first day of the month for which the calculation is
made; times 

  

	 	3.	 The funding obligation, less the amount, if any, funded by the Subscribing Reinsurer prior to the applicable date determined in subparagraph 1 above.

 It is agreed that interest shall accumulate until the full interest charge amount as provided for in
this paragraph and the funding obligation are paid. 
 If the interest rate provided under this Article exceeds the maximum
interest rate allowed by any applicable law or is held unenforceable by an arbitrator or a court of competent jurisdiction, such interest rate shall be modified to the highest rate permitted by the applicable law, and all remaining provisions of
this Article and Agreement shall remain in full force and effect without being impaired or invalidated in any way. 
  

	C.	 With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory
authorities involved, will be issued for a term of at least one year and will involve an “evergreen clause,” which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal
is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Agreement, that said letter of credit may be drawn upon by the Company or its
successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes: 

 

	 	1.	 To reimburse itself for the Reinsurers’ share of losses and/or Loss Adjustment Expense paid under the terms of Policies reinsured hereunder, unless paid
in cash by the Reinsurer; 

  

	 	2.	 To reimburse itself for the Reinsurer’s share of any other amounts claims to be due hereunder, unless paid in cash by the Reinsurer;

  

	 	3.	 To fund a cash account in an amount equal to the Reinsurer’s share of any ceded unearned premium and/or outstanding loss and Loss Adjustment Expense
reserves (including all case reserves plus any reasonable amount estimated to be unreported for known Loss Occurrences) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or
replaced by the Reinsurer 10 days prior to its expiration date; 

  

	 	4.	 To refund to the Reinsurer any sums in excess of the actual amount required to fund the Reinsurer’s share of the Company’s ceded unearned premium
and/or outstanding loss and Loss Adjustment Expense reserves (including all case 

  

  

 
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reserves plus any reasonable amount estimated to be unreported from known Loss Occurrences), if so requested by the Reinsurer; and 

 

	 	5.	 To reimburse itself for the Reinsurer’s portion of the unearned reinsurance premium paid to the Reinsurer hereunder. 

In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for C(1), C(3), or
C(5), or in the case of C(2), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn. 

ARTICLE XV – GOVERNING LAW (BRMA 71B) 

This Agreement shall be governed by and construed in accordance with the laws of the State of Florida. 

ARTICLE XVI – INSOLVENCY 
  

	A.	 In the event of the insolvency of one or more of the reinsured companies, this reinsurance shall be payable directly to the company or to its liquidator,
receiver, conservator or statutory successor on the basis of the liability of the company without diminution because of the insolvency of the company or because the liquidator, receiver, conservator or statutory successor of the company has failed
to pay all or a portion of any claim. It is agreed, however, that the liquidator, receiver, conservator or statutory successor of the company shall give written notice to the Reinsurer of the pendency of a claim against the company indicating the
policy or bond reinsured which claim would involve a possible liability on the part of the Reinsurer within a reasonable time after such claim is filed in the conservation or liquidation proceeding or in the receivership, and that during the
pendency of such claim, the Reinsurer may investigate such claim and interpose, at its own expense, in the proceeding where such claim is to be adjudicated, any defense or defenses that it may deem available to the company or its liquidator,
receiver, conservator or statutory successor. The expense thus incurred by the Reinsurer shall be chargeable, subject to the approval of the Court, against the company as part of the expense of conservation or liquidation to the extent of a pro rata
share of the benefit which may accrue to the company solely as a result of the defense undertaken by the Reinsurer. 

  

	B.	 Where two or more reinsurers are involved in the same claim and a majority in interest elect to interpose defense to such claim, the expense shall be
apportioned in accordance with the terms of this Agreement as though such expense had been incurred by the company. 

  

	C.	 It is further understood and agreed that, in the event of the insolvency of one or more of the reinsured companies, the reinsurance under this Agreement shall
be payable directly by the Reinsurer to the company or to its liquidator, receiver or statutory successor, except as provided by Section 4118(a) of the New York Insurance Law or except (1) where this Agreement specifically provides another
payee of such reinsurance in the 

  

  

 
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event of the insolvency of the company or (2) where the Reinsurer with the consent of the direct insured or insureds has assumed such Policy obligations of the company as direct obligations
of the Reinsurer to the payees under such Policies and in substitution for the obligations of the company to such payees. 

ARTICLE XVII – LATE PAYMENTS 
  

	A.	 The interest penalties provided for in this Article shall apply to the Reinsurer or to the Company in the following circumstances:

  

	 	1.	 Payments due from the Reinsurer to the Company shall have as a due date the date on which the agreed proof of loss is received by the Reinsurer, and shall be
overdue 30 days thereafter. Payment to the Intermediary is deemed to be payment to the Company for purposes of this Article. 

  

	 	2.	 Payments due from the Company to the Reinsurer shall have as a due date the date specified in this Agreement. Payments shall be overdue 30 days thereafter.
Premium adjustments shall be overdue 30 days following the due date set forth under the terms of this Agreement. 

  

	 	3.	 The Company shall provide a copy of the original insured’s proof of loss, and a copy of the claim adjuster’s report(s) or other evidence of
indemnification for losses exceeding the excess limit on an incurred basis. If, subsequent to receipt of this evidence, the information contained therein is insufficient or not in accordance with the contractual conditions, then the payment due date
as defined in paragraph A shall be deemed to be the date upon which the Reinsurer received additional information necessary to approve payment of the claim or the claim is presented in an acceptable manner. Interest as stipulated in paragraph D
shall be payable should a disputed claim be ultimately settled and if the period set out in paragraph A is exceeded, but only to the extent that the final loss payment exactly tracks with the original proof of loss. 

 

	 	4.	 Overdue amounts shall bear simple interest from the overdue date at the 90-day United States Treasury Bill rate set forth by the Federal Reserve Board for the
first Monday of the calendar month in which the amount becomes overdue, as published in the Federal Reserve Statistical Release. If the interest generated for 100% in respect of any overdue payment as outlined in paragraph A or B is $500 or less,
then the interest penalty shall be waived. 

  

	 	5.	 For the purposes of this Article, reinsuring Lloyd’s Underwriters shall be viewed as one entity. The provisions set forth herein shall not be applicable
until the creditor party shall have manifested to the debtor party its intent to invoke the terms of this Article. 

  

  

 
 Page 10 of 13 

 

 

 ARTICLE XVIII – NON-WAIVER 

The failure of the Company or the Reinsurer to insist on compliance with this Agreement or to exercise any right or remedy hereunder shall not
constitute a waiver of any rights or remedies contained herein nor stop either party from thereafter demanding full and complete compliance nor prevent either party from exercising such rights or remedies in the future. 

ARTICLE XIX – NOTICES AND AGREEMENT EXECUTION 
  

	A.	 Whenever a notice, statement, report or any other written communication is required by this Agreement, unless otherwise specified, such notice, statement,
report or other written communication may be transmitted by certified or registered mail, nationally or internationally recognized express delivery service, personal delivery, electronic mail, or facsimile. With the exception of notices of
termination, first class mail is also acceptable. 

  

	B.	 The use of any of the following shall constitute a valid execution of this Agreement or any amendments thereto: 

 

	 	1.	 Paper documents with an original ink signature; 

  

	 	2.	 Facsimile or electronic copies of paper documents showing an original ink signature; and/or 

 

	 	3.	 Electronic records with an electronic signature made via an electronic agent. For the purposes of this Agreement, the terms “electronic record,”
“electronic signature” and “electronic agent” shall have the meanings set forth in the Electronic Signatures in Global and National Commerce Act of 2000 or any amendments thereto. 

 

	C.	 This Agreement may be executed in one or more counterparts, each of which, when duly executed, shall be deemed an original. 

ARTICLE XX – OFFSET (BRMA 36E) 

The Company and the Reinsurer, each at its option, may offset any balance or balances, whether on account of premiums, claims and losses, Loss
Adjustment Expenses or salvages due from one party to the other under this Agreement or under any other reinsurance agreement heretofore or hereafter entered into between the Company and the Reinsurer, whether acting as assuming reinsurer or as
ceding company; provided, however, that in the event of the insolvency of a party hereto, offsets shall only be allowed in accordance with applicable statutes and regulations. 

ARTICLE XXI – SERVICE OF SUIT (BRMA 49G) 

(Applicable if the Reinsurer is not domiciled in the United States of America, and/or is not authorized in any State, Territory, or District of the
United States where authorization is required by insurance regulatory authorities) 
  

  

 
 Page 11 of 13 

 

 

	A.	 This Article will not be read to conflict with or override the obligations of the parties to arbitrate their disputes as provided for in the Arbitration
Article. This Article is intended as an aid to compelling arbitration or enforcing such arbitration or arbitral award, not as an alternative to the Arbitration Article for resolving disputes arising out of this Agreement.

  

	B.	 In the event the Reinsurer fails to pay any amount claimed to be due hereunder, the Reinsurer, at the request of the Company, will submit to the jurisdiction
of a court of competent jurisdiction within the United States. Nothing in this Article constitutes or should be understood to constitute a waiver of the Reinsurer’s rights to commence an action in any court of competent jurisdiction in the
United States, to remove an action to a United States District Court, or to seek a transfer of a case to another court as permitted by the laws of the United States or of any state in the United States. The Reinsurer, once the appropriate Court is
accepted by the Reinsurer or is determined by removal, transfer or otherwise, as provided for above, will comply with all requirements necessary to give said Court jurisdiction and, in any suit instituted against any of the Subscribing Reinsurers
upon this Agreement, will abide by the final decision of such Court or of any Appellate Court in the event of an appeal. 

  

	C.	 Further, pursuant to any statute of any state, territory or district of the United States which makes provision therefor, the Reinsurer hereby designates the
party named in its Interests and Liabilities Contract, or if no party is named therein, the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute, or his or her successor or successors in
office, as its true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the Company or any beneficiary hereunder arising out of this Agreement. 

ARTICLE XXII – SEVERABILITY (BRMA 72E) 

If any provision of this Agreement shall be rendered illegal or unenforceable by the laws, regulations or public policy of any state, such provision
shall be considered void in such state, but this shall not affect the validity or enforceability of any other provision of this Agreement or the enforceability of such provision in any other jurisdiction. 

ARTICLE XXIII – TAXES 
 In
consideration of the terms under which this Agreement is issued, the Company will not claim a deduction in respect of the premium hereon when making tax returns, other than income or profits tax returns, to any state or territory of the United
States of America or the District of Columbia. 
 ARTICLE XXIV – INTERMEDIARY (BRMA 23A) 

TigerRisk Partners LLC is hereby recognized as the Intermediary negotiating this Agreement for all business hereunder. All communications
(including, but not limited to, notices, statements, 
  

  

 
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premium, return premium, commissions, taxes, losses, Loss Adjustment Expense, salvages and loss settlements) relating thereto shall be transmitted to the Company or the Reinsurer through
TigerRisk Partners LLC, 7601 France Avenue South, Suite 200, Edina, MN 55435. Payments by the Company to the Intermediary shall be deemed to constitute payment to the Reinsurer. Payments by the Reinsurer to the Intermediary shall be deemed to
constitute payment to the Company only to the extent that such payments are actually received by the Company. 
 IN WITNESS
WHEREOF, the Company by its duly authorized representative has executed this Agreement as of the date undermentioned at: 

Clearwater, Florida, this
                             day of
                                         
                                         
                   2010. 
  

	
	  

	 HOMEOWNERS CHOICE PROPERTY & CASUALTY

	 INSURANCE COMPANY (for and on behalf of the “Company”)

 

  

 
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