Document:

EX-10.30

 Exhibit 10.30 

AMERICAN INTERSTATE INSURANCE COMPANY 

SILVER OAK CASUALTY, INC. 

both of Omaha, Nebraska 

and 
 AMERICAN INTERSTATE
INSURANCE COMPANY OF TEXAS 
 Austin, Texas 

and 
 any other insurance
companies which are now or hereafter come under the ownership, 
 control or management of Amerisafe Insurance Group 

CASUALTY EXCESS OF LOSS 

REINSURANCE CONTRACT 

							
	 I
		 BUSINESS COVERED
		 	1	  
			
	 II
		 TERM
		 	1	  
			
	 III
		 SPECIAL TERMINATION
		 	2	  
			
	 IV
		 DEFINITIONS
		 	4	  
			
			 Act of Terrorism
		 	4	  
			
			 Declaratory Judgment Expense
		 	5	  
			
			 Extra Contractual Obligations/Loss in Excess of Policy Limits
		 	5	  
			
			 Loss Adjustment Expense
		 	5	  
			
			 Loss Occurrence
		 	6	  
			
			 Net Earned Premium
		 	7	  
			
			 Written Premium
		 	7	  
			
			 Policy
		 	7	  
			
			 Contract Year
		 	7	  
			
			 Policy Year Manual Payroll (excluding clerical)
		 	7	  
			
			 Ultimate Net Loss
		 	7	  
			
	 V
		 TERRITORY
		 	8	  
			
	 VI
		 EXCLUSIONS
		 	8	  
			
	 VII
		 TERRORISM ACT RECOVERIES
		 	9	  
			
	 VIII
		 COVERAGE
		 	10	  
			
	 IX
		 MATERIAL CHANGE
		 	12	  
			
	 X
		 REINSURANCE PREMIUM
		 	14	  
			
	 XI
		 FUNDS WITHHELD ACCOUNT
		 	14	  
			
	 XII
		 NOTICE OF LOSS AND LOSS SETTLEMENTS
		 	16	  
			
	 XIII
		 LIABILITY OF REINSURERS
		 	16	  
			
	 XIV
		 LATE PAYMENTS
		 	17	  
			
	 XV
		 REPORTS AND REMITTANCES
		 	18	  
			
	 XVI
		 COMMUTATION
		 	19	  
			
	 XVII
		 NOTIONAL EXPERIENCE ACCOUNT
		 	20	  
			
	 XVIII
		 ANNUITIES AT THE COMPANY’S OPTION
		 	21	  
			
	 XIX
		 SUNSET
		 	21	  
			
	 XX
		 SUBROGATION
		 	22	  
			
	 XXI
		 ERRORS AND OMISSIONS
		 	22	  
			
	 XXII
		 OFFSET
		 	22	  
			
	 XXIII
		 CURRENCY
		 	22	  

							
	 XXIV
		 TAXES
		 	23	  
			
	 XXV
		 FEDERAL EXCISE TAX
		 	23	  
			
	 XXVI
		 NET RETAINED LINES
		 	23	  
			
	 XXVII
		 THIRD PARTY RIGHTS
		 	23	  
			
	 XXVIII
		 SEVERABILITY
		 	24	  
			
	 XXIX
		 GOVERNING LAW
		 	24	  
			
	 XXX
		 ACCESS TO RECORDS
		 	24	  
			
	 XXXI
		 CONFIDENTIALITY
		 	24	  
			
	 XXXII
		 INSOLVENCY
		 	25	  
			
	 XXXIII
		 ARBITRATION
		 	26	  
			
	 XXXIV
		 UNAUTHORIZED REINSURANCE
		 	27	  
			
	 XXXV
		 SERVICE OF SUIT
		 	30	  
			
	 XXXVI
		 MODE OF EXECUTION
		 	31	  
			
	 XXXVII
		 ENTIRE AGREEMENT
		 	31	  
			
	 XXXVIII
		 INTERMEDIARY
		 	31	  
			
			 Nuclear Incident Exclusion Clause - Liability - Reinsurance - U.S.A.
				

 CASUALTY EXCESS OF LOSS 

REINSURANCE CONTRACT 
 (the
“Contract”) 
 between 

AMERICAN INTERSTATE INSURANCE COMPANY 

SILVER OAK CASUALTY, INC. 

both of Omaha, Nebraska 

and 
 AMERICAN INTERSTATE
INSURANCE COMPANY OF TEXAS 
 Austin, Texas 

and 
 any other insurance
companies which are now or hereafter come under the ownership, 
 control or management of Amerisafe Insurance Group 

(collectively the “Company”) 

and 
 THE SUBSCRIBING
REINSURER(S) EXECUTING THE 
 AND LIABILITIES AGREEMENT(S) ATTACHED HERETO 

(the “Reinsurer”) 

ARTICLE I 
 BUSINESS COVERED

 By this Contract the Reinsurer agrees to reinsure the excess liability of the Company under its Policies that are in force at the effective time
and date hereof or issued or renewed at or after that time and date, and classified by the Company as Workers’ Compensation, Employers Liability, including but not limited to coverage provided under the U.S. Longshore and Harbor Workers’
Compensation Act, Jones Act, Outer Continental Shelf Lands Act and any other Federal Coverage extensions, subject to the terms, conditions and limitations hereafter set forth. 

ARTICLE II 
 TERM

  

	A.	This Contract shall apply to all losses occurring during the period 12:01 a.m., Standard Time, January 1, 2014 (as set forth in the Company’s policies) to 12:01 a.m., Standard Time, January 1, 2017.

  

	B.	Upon the expiration or termination of this Contract, the entire liability of the Reinsurer for losses occurring subsequent to the date of expiration or termination shall cease concurrently with the date of expiration or
termination of this Contract. 

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

 

	D.	The Reinsurer shall have no right to either terminate or commute this Contract other than as set forth in paragraph F of the MATERIAL CHANGE ARTICLE or paragraph A of the COMMUTATION ARTICLE or paragraph B of the
SPECIAL TERMINATION ARTICLE. 

  

	E.	This Contract shall continue in force and shall apply, subject to all of the terms and limits hereof, to the Company’s Ultimate Net Loss until this Contract has been commuted in accordance with the terms of the
COMMUTATION ARTICLE or until all Ultimate Net Loss has been paid by the Reinsurer in accordance with the terms of the COVERAGE ARTICLE. 

ARTICLE III 
 SPECIAL
TERMINATION 
  

	A.	The Company may terminate a subscribing reinsurer’s share in this Contract by giving 90 days written notice to the subscribing reinsurer upon the happening of any one of the following circumstances:

  

	 	1.	A State Insurance Department or other legal authority orders the subscribing reinsurer to cease writing business, or 

  

	 	2.	The subscribing reinsurer has become insolvent or has been placed into liquidation or receivership (whether voluntary or involuntary), or there has been instituted against it proceedings for the appointment of a
receiver, liquidator, rehabilitator, conservator, or trustee in bankruptcy, or other agent known by whatever name, to take possession of its assets or control of its operations, or 

 

	 	3.	For any period not exceeding 12 months which commences no earlier than 12 months prior to the inception of this Contract, the subscribing reinsurer’s policyholders’ surplus, as reported in the financial
statements of the subscribing reinsurer (as respects a subscribing reinsurer domiciled outside the United States, policyholders’ surplus shall mean the sum of share capital and contributed capital as stated in the subscribing reinsurer’s
audited financial statement) has been reduced by 20.0% or more, or 

  

	 	4.	The subscribing reinsurer has become merged with, acquired or controlled by any company, corporation, or individual(s) not controlling the subscribing reinsurer’s operations previously, or 

 

	 	5.	The subscribing reinsurer has reinsured its entire liability under this Contract without the Company’s prior written consent, or 

 

	 	6.	The subscribing reinsurer receives an A. M. Best rating of lower than A-, or an S&P financial strength rating of lower than A-, or 

	 	7.	The subscribing reinsurer has ceased writing new and renewal reinsurance for the lines of business covered hereunder, or 

  

	 	8.	The Company’s outside auditors determine during the first two months of the Term of the Contract that the Contract does not provide sufficient risk transfer to constitute reinsurance in accordance with the
Financial Accounting Standards Board Statements guidelines. 

  

	B.	A subscribing reinsurer may terminate their share of this Contract by giving 90 days written notice to the Company upon the happening of any one of the following circumstances: 

 

	 	1.	A State Insurance Department or other legal authority orders the Company to cease writing business, or 

  

	 	2.	The Company has become insolvent or has been placed into liquidation or receivership (whether voluntary or involuntary), or there has been instituted against it proceedings for the appointment of a receiver, liquidator,
rehabilitator, conservator, or trustee in bankruptcy, or other agent known by whatever name, to take possession of its assets or control of its operations, or 

  

	 	3.	The Company has become merged with, acquired or controlled by any company, corporation, or individual(s) not controlling the Company’s operations previously. 

 

	C.	In the event of termination in accordance with paragraph A or B, above, or in accordance with paragraph F of the MATERIAL CHANGE ARTICLE, the following shall apply as respects reinsurance premium and reinsurance limits:

  

	 	1.	If terminated prior to or at the expiration of Contract Year I, the reinsurance premium and the annual aggregate deductibles under Part A of the COVERAGE ARTICLE shall be calculated based on Net Earned Premium through
the termination date. The Reinsurer’s limit of liability in respect of all losses occurring during the term of this Contract shall be equal to the limits available for Contract Year 1 under the COVERAGE ARTICLE being 3.5% of Net Earned Premium,
as calculated above, under Part A. 

  

	 	2.	 If terminated at any time during Contract Year 2 or Contract Year 3, the reinsurance premium and the annual aggregate deductibles and Contract Year
limits for Parts A and B of the COVERAGE ARTICLE shall be calculated as specified in the REINSURANCE PREMIUM ARTICLE and COVERAGE ARTICLE for any full Contract Year prior to the termination date. For the Contract Year in which termination occurs,
the reinsurance premium and the annual aggregate deductibles under Parts A and B of the COVERAGE ARTICLE shall be calculated based on Net Earned Premium for that Contract Year through the termination date. The Reinsurer’s limit of liability in
respect of losses occurring during the Contract Year in which the termination occurs shall be equal to 5.0% of Net Earned Premium for that Contract Year, as calculated above, and 3.0% of Net Earned Premium for that Contract Year, as calculated
above, under Part A and Part B respectively. The Reinsurer’s limit of liability in respect of all losses occurring during the term of this Contract shall be equal to the limits available during the tern of this Contract under the COVERAGE
ARTICLE being 3.02% of Net Earned Premium and 

	 	
1.5% of Net Earned Premium for all applicable Contract Years through the termination date under Part A and Part B respectively. 

 

	D.	In the event the Company terminates a subscribing reinsurer’s share in this Contract under the provision of this Article, the Company has the option, but not obligation, to commute the subscribing reinsurer’s
past liabilities for losses in accordance with the COMMUTATION ARTICLE. 

  

	E.	In the event the Company terminates a subscribing reinsurer’s share in this Contract under the provision of this Article, the Company shall have the option to require the subscribing reinsurer to fund its share of
known outstanding losses that have been reported to the subscribing reinsurer and allocated loss adjustment expense relating thereto, losses and allocated loss adjustment expense paid by the Company but not recovered from the subscribing reinsurer,
reserves for losses incurred but not reported as per the Company’s statutory accounts, unearned premium and any positive Notional Experience Account balance accrued by the Company, as shown in the statement prepared by the Company, and any
other balances or financial obligations. Within 30 days of the Company’s written request to fund, the subscribing reinsurer shall provide to the Company a clean, unconditional, evergreen, irrevocable letter of credit or a trust agreement which
establishes a trust account for the benefit of the Company. The method of funding must be acceptable to the Company, shall be established with a financial institution suitable to the Company, shall comply with any applicable state or federal laws or
regulations involving the Company’s ability to recognize these agreements as assets or offsets to liabilities in such jurisdictions and shall be at the sole expense of the subscribing reinsurer. The Company and the subscribing reinsurer may
mutually agree on alternative methods of funding or the use of a combination of methods. This option is available to the Company at any time there remains any outstanding liabilities of the subscribing reinsurer. Notwithstanding the foregoing, the
Company shall not require funding in accordance with this subparagraph in the event the subscribing reinsurer has otherwise fully funded its obligations under this Contract in a manner acceptable to the Company. 

ARTICLE IV 
 DEFINITIONS

  

	A.	Act of Terrorism 

 “Act of Terrorism” as used herein shall mean any act that is
certified as an “act of terrorism” under the Terrorism Risk Insurance Program Reauthorization Act of 2007 and any other extensions or amendments thereto (“TRIPRA”). In the event TRIPRA is not extended, renewed or succeeded, Act
of Terrorism shall mean a violent act or an act that is dangerous to human life; property; or infrastructure that 1) has resulted in damage within the United States, or outside of the United States in the case of an air carrier or vessel, 2) was
committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion, and 3) resulted in aggregate industry
insured loss exceeding $100 million. 

	B.	Declaratory Judgment Expense 

 “Declaratory Judgment Expense” as used herein shall
mean all expenses incurred by the Company in connection with a declaratory judgment action brought to determine the Company’s defense and/or indemnification obligations that are allocable to a specific claim subject to this Contract.
Declaratory Judgment Expense shall be deemed to have been incurred on the date of the original loss (if any) giving rise to the declaratory judgment action. 
  

	C.	Extra Contractual Obligations/Loss in Excess of Policy Limits 

  

	 	1.	Extra Contractual Obligations 

 This Contract shall protect the Company for any “Extra
Contractual Obligations” which as used herein shall mean any punitive, exemplary, compensatory or consequential damages, other than Loss in Excess of Policy Limits, paid or payable by the Company as a result of an action against it by its
insured, its insured’s assignee or a third party claimant, by reason of alleged or actual negligence, fraud or bad faith on the part of the Company in handling a claim under a Policy subject to this Contract. 

An Extra Contractual Obligation shall be deemed to have occurred on the same date as the loss covered or alleged to be covered under the
Policy. 
  

	 	2.	Loss in Excess of Policy Limits 

 This Contract shall protect the Company for any “Loss in
Excess of Policy Limits” which as used herein shall mean an amount that the Company would have been contractually liable to pay had it not been for the limit of the original Policy as a result of an action against it by its insured, its
insured’s assignee or a third party claimant. Such loss in excess of the limit shall have been incurred because of failure by the Company to settle within the Policy limit, or by reason of alleged or actual negligence, fraud, or bad faith in
rejecting an offer of settlement or in the preparation of the defense or in the trial of any action against its insured or in the preparation or prosecution of an appeal consequent upon such action. 

 

	 	3.	Notwithstanding anything stated herein, this paragraph C shall not apply where an Extra Contractual Obligation and/or Loss in Excess of Policy Limits has been incurred due to an admission by the Company of fraud and/or
criminal act committed by a member of the Board of Directors or a corporate officer or any employee of the Company acting individually or collectively or in collusion with a member of the Board of Directors or a corporate officer or a partner of any
other corporation or partnership. 

  

	D.	Loss Adjustment Expense 

 “Loss Adjustment Expense” as used herein shall mean all
costs and expenses allocable to a specific claim that are incurred by the Company in the investigation, appraisal, adjustment, settlement, litigation. defense or appeal of a specific claim. including court costs and costs of supersedeas and appeal
bonds, and including 1) pre-judgment interest, unless included as part of the award or judgment; 2) post-judgment interest; 3) legal expenses and costs incurred in connection with coverage questions and legal actions connected thereto, including
Declaratory 

 
Judgment Expense; and 4) a pro rata share of salaries and expenses of Company field employees, and expenses of other Company employees who have been temporarily diverted from their normal and
customary duties and assigned to the field adjustment of losses covered by this Contract. Loss Adjustment Expense does not include unallocated loss adjustment expense. Unallocated loss adjustment expense includes, but is not limited to, salaries and
expenses of employees, other than (4) above, and office and other overhead expenses. 
  

	E.	Loss Occurrence 

 “Loss Occurrence” as used herein shall mean anyone disaster or
casualty or accident or loss or series of disasters or casualties or accidents or losses arising out of or caused by one event. Within the context of this definition and except for Occupational Disease and Cumulative Trauma, the Company shall be the
sole judge of what constitutes one event. 
 As respects losses resulting from Occupational or Industrial Disease or Cumulative Trauma, each
employee shall be considered a separate Loss Occurrence subject to the following: 
 Losses resulting from Occupational or Industrial Disease
or Cumulative Trauma suffered by employees of an insured for which the employer is liable, as a result of a sudden and accidental event not exceeding 72 hours in duration, shall be considered one Loss Occurrence
         and may be combined with losses classified as other than Occupational or Industrial Disease or Cumulative Trauma which arise out of the same event and the combination of such losses shall be
considered as one Loss Occurrence within the meaning hereof. 
 “Occupational or Industrial disease” is any abnormal condition that
fulfills all of the following conditions: 
  

	 	1.	It is not traceable to a definite compensable accident occurring during the employee’s past or present employment. 

  

	 	2.	It has been caused by exposure to a disease producing agent or agents present in the workers’ occupational environment. 

  

	 	3.	It has resulted in death or disability. 

 “Cumulative Trauma” is an injury that
fulfils all of the following conditions: 
  

	 	1.	It is not traceable to a definite compensable accident occurring during the employees past or present employment and shall be as defined by applicable statutes or regulations. 

 

	 	2.	It has occurred from and has been aggravated by a repetitive employment related activity. 

  

	 	3.	It has resulted in death or disability. 

	F.	Net Earned Premium 

 “Net Earned Premium” as used herein is defined as the gross
earned premium of the Company for the classes of business reinsured hereunder, less the earned portion of premiums ceded by the Company for reinsurance which inures to the benefit of this Contract, less dividends paid or accrued. 

 

	G.	Written Premium 

 “Written Premium” as used herein is defined as used in the
company’s data system. 
  

	H.	Policy 

 “Policy” or “Policies” as used herein shall mean the Company’s
binders, policies and contracts providing insurance or reinsurance on the classes of business covered under this Contract. 
  

	I.	Contract Year 

 “Contract Year” as used herein shall mean each 12-month period as
follows: 
  

	 	1.	Contract Year 1: 12:01 a.m., Standard Time, January 1, 2014 (as set forth in the Company’s policies) to 12:0 I a.m., Standard Time, January 1, 2015. 

 

	 	2.	Contract Year 2: 12:01 a.m., Standard Time, January 1, 2015 (as set forth in the Company’s policies) to 12:01 a.m., Standard Time, January 1, 2016. 

 

	 	3.	Contract Year 3: 12:01 a.m., Standard Time, January 1, 2016 (as set forth in the Company’s policies) to 12:01 a.m., Standard Time, January 1, 2017. 

 

	J.	Policy Year Manual Payroll (excluding clerical) 

 “Policy Year Manual Payroll (excluding
clerical)” shall mean manual payroll as used for applying manual premium rates for policies incepting or renewed during the calendar year excluding manual payroll for Manual Class Codes 8810 and 953. The 2013 Policy year manual payroll
(excluding clerical) is estimated to be $4,283,000.000. 
  

	K.	Ultimate Net Loss 

 “Ultimate Net Loss” shall mean the actual loss, including but not
limited to ex gratia payments, any pre-judgment interest which is included as part of the award or judgment, “Second Injury Fund” assessments that can be allocated to specific claims, Loss Adjustment Expense, 90% of Loss in Excess of
Policy Limits, and 90% of Extra Contractual Obligations, paid or to be paid by the Company on its net retained liability after making deductions for all recoveries, subrogations and all claims on inuring reinsurance, whether collectible or not;
provided, however, that in the event of the insolvency of the Company, payment by the Reinsurer shall be made in accordance with the provisions of the INSOLVENCY ARTICLE. Nothing herein shall be construed to mean that losses under this Contract are
not recoverable until the Company’s Ultimate Net Loss has been ascertained. 
 Notwithstanding the definition of “Ultimate Net
Loss” herein, the provisions of 

 
paragraph C of the COVERAGE ARTICLE as respects the Minnesota Workers’ Compensation Reinsurance Association shall apply. 

ARTICLE V 
 TERRITORY

 The territorial limits of this Contract shall be identical with those of the Company’s Policies. 

ARTICLE VI 
 EXCLUSIONS

  

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

  

	 	1.	Reinsurance assumed by the Company under obligatory reinsurance agreements, except: 

  

	 	a.	Agency reinsurance where the policies involved are to be reunderwritten in accordance with the underwriting standards of the Company and reissued as Company policies at the next anniversary or expiration date; and

  

	 	b.	Intercompany reinsurance between any of the reinsured companies under this Contract. 

  

	 	2.	Nuclear risks as defined in the “Nuclear Incident Exclusion Clause – Liability – Reinsurance - U.S.A.” (NMA 1590 21/9/67) attached hereto. 

 

	 	3.	Liability as a member, subscriber or reinsurer of any Pool, Syndicate or Association, including Assigned Risk Plans or similar plans; however, this exclusion shall not apply to liability under a Policy specifically
designated to the Company from an Assigned Risk Plan or similar plan. 

  

	 	4.	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. 

  

	 	5.	Any “Act of Terrorism” directly or indirectly involving the use of nuclear, chemical, biological or radiological devices. 

	 	6.	Workers’ Compensation where the principal exposure, as defined by the governing class code, is: 

  

	 	a.	Operation of aircraft, but only if the annual estimated policy premium is $250,000 or more; 

  

	 	b.	Operation of Railroads, subways or street railways; 

  

	 	c.	Manufacturing, assembly, packing or processing of fireworks, fuses, nitroglycerine, magnesium, pyroxylin, ammunition or explosives. This exclusion does not apply to the assembly, packing or processing of explosives when
the estimated annual premium is under $250,000 and does not apply to the commercial use of explosives 

  

	 	d.	Underground mining. 

  

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

  

	 	8.	Business written by the Company on a co-indemnity basis where the Company is not the controlling carrier. 

  

	 	9.	As regards interests which at the time of loss or damage are on shore, no liability shall attach hereto in respect to any loss or damage which is occasioned by 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. This War Exclusion Clause shall not, however, apply to interests which at time of loss or damage are within the
territorial limits of the United States of America (comprising the Fifty States of the Union, the District of Columbia and including bridges between the United States of America and Mexico provided they are under United States ownership), Canada,
St. Pierre and Miquelon, provided such interests are insured under policies containing a standard war or hostilities or warlike operations exclusion clause. 

  

	B.	Notwithstanding the foregoing, any reinsurance falling within the scope of one or more of the exclusions set forth above that is specially accepted by the Reinsurer from the Company shall be covered under this Contract
and be subject to the terms hereof. 

  

	C.	Should a court of competent jurisdiction invalidate any exclusion or expand coverage of the original Policy of the Company, any amount of Loss for which the Company would not be liable, except for such invalidation or
expansion of coverage, shall not be subject to any of the exclusions, conditions and limitations hereinafter set forth under this Contract. 

ARTICLE VII 
 TERRORISM ACT
RECOVERIES 
  

	A.	Any financial assistance the Company receives under the Terrorism Risk Insurance Act of 2002 (as amended by the Terrorism Risk Insurance Extension Act of 2005 and by the Terrorism Risk Insurance Program Reauthorization
Act of 2007) and any other replacements, extensions or amendments thereto (hereinafter “TRIA”), shall apply as follows: 

	 	1.	Except as provided in subparagraph 2 below, any such financial assistance shall inure solely to the benefit of the Company and shall be entirely disregarded in applying all of the provisions of this Contract.

  

	 	2.	If losses occurring hereunder result in recoveries made by the Company both under this Contract and under TRIA, and such recoveries, together with any other reinsurance recoveries made by the Company applicable to said
losses, exceed the total amount of the Company’s insured losses, any amount in excess thereof shall reduce the Ultimate Net Loss subject to this Contract for the losses to which the TRIA financial assistance applies. These recoveries shall be
returned in proportion to each Reinsurer’s paid share of the loss. 

  

	B.	Nothing herein shall be construed to mean that the losses under this Contract are not recoverable from the Reinsurer until the Company has received financial assistance under TRIA. 

ARTICLE VIII 
 COVERAGE

  

	A.	Part A 

 With respect to Contract Year 1, the Reinsurer shall be liable for the amount of
Ultimate Net Loss in excess of the Company’s retention, being $2,000,000 each Loss Occurrence, subject to a limit of liability to the Reinsurer of $3,000,000 each Loss Occurrence. With respect to Contract Year 2 and Contract Year 3, the
Reinsurer shall be liable for the amount of Ultimate Net Loss in excess of the Company’s retention, being $2,000,000 each Loss Occurrence, subject to a limit of liability to the Reinsurer of $8,000,000 each Loss Occurrence. No paid recovery
shall be made under this Part A unless and until the Company shall have first satisfied an annual aggregate deductible in respect of all cumulative paid losses otherwise recoverable under this Part A equal to the greater of 1.5% of Net Earned
Premium or $3,961,200 for the applicable Contract Year. The Reinsurer’s liability in respect of all losses occurring during anyone Contract Year of this Contract shall not exceed the lesser of: 

 

	 	i)	3.5% of Net Earned Premium, or 

  

	 	ii)	$13,900,000 

 with respect to Contract Year 1, and 

 

	 	i)	5.0% of Net Earned Premium for the applicable Contract Year, or 

  

	 	ii)	$20,800,000 with respect to Contract Year 2, and 

 $21,800,000 with respect to Contract Year 3.

 The Reinsurer’s liability in respect of all losses occurring during the term of this Contract shall not exceed the lesser of: 

	 	i)	3.02% of Net Earned Premium for all Contract Years over the term of this Contract, or 

  

	 	ii)	$37,700,000. 

 Part B 

With respect to Contract Year 2 and Contract Year 3, the Reinsurer shall be liable for the amount of Ultimate Net Loss in excess of the
Company’s retention, being $2,000,000 each Loss Occurrence, subject to a limit of liability to the Reinsurer of $8,000,000 each Loss Occurrence. No paid recovery shall be made under this Part B unless and until the Company shall have first
satisfied an annual aggregate deductible in respect of all cumulative paid losses otherwise recoverable under this Part B equal to the sum of i) the annual aggregate deductible under Part A as calculated above plus ii) 5.0% of Net
Earned Premium for the applicable Contract Year. The Reinsurer’s liability in respect of all losses occurring during anyone Contract Year of this Contract shall not exceed the lesser of: 

 

	 	i)	3.0% of Net Earned Premium for the applicable Contract Year, or 

  

	 	ii)	$12,500,000 with respect to Contract Year 2, and 

 $13,100,000 with respect to Contract Year 3.

 The Reinsurer’s liability in respect of all losses occurring during the term of this Contract shall not exceed the lesser of: 

 

	 	i)	1.5% of the sum of Net Earned Premium for Contract Year 2 and Contract Year 3, or 

  

	 	ii)	$13,100,000. 

 For avoidance of doubt, this Contract shall be subject to a Loss Occurrence limit
equal to $3,000,000 for Contract Year 1 and $8,000,000 for Contract Year 2 and Contract Year 3 and shall be inclusive of all indemnity, Extra Contractual Obligations, Loss in Excess of Policy Limits amounts and Loss Adjustment Expenses recoverable
under this Contract with respect to each Loss Occurrence. 
  

	B.	The Company shall be permitted to purchase (or maintain) other reinsurance which inures to the benefit of this Contract. 

  

	C.	The Company shall be permitted to carry excess of loss reinsurance applying to Workers’ Compensation risks in the State of Minnesota, actual recoveries under which shall inure to the benefit of this Contract. Such
coverage shall be provided through the Minnesota Workers’ Compensation Reinsurance Association. Notwithstanding the treatment of inuring coverage in the definition of Ultimate Net Loss, the liability of the Reinsurer for Minnesota Workers’
Compensation risks is not released. 

 ARTICLE IX 

MATERIAL CHANGE 

 The Company shall not introduce material changes in its generally established practices, including but not
limited to claims, acceptance and underwriting policies, its inuring reinsurance protection and loss reserving process (including the allocation of loss adjustment expenses between allocated and unallocated) in any manner which materially affects
this Contract, unless the Company has received the prior written approval from the Reinsurer. 
  

	A.	Prior to the start of each of Contract Year 2 and Contract Year 3, a determination shall be made as respects whether a Material Change to the underlying Business Covered by this Contract has occurred. 

 

	B.	The Company shall provide to Reinsurer, no later than October 15 of each of 2014 and 2015, a schedule of Written Premium in total and for the Governing Class Groups enumerated in subparagraph 5 below.
Written Premium for purposes of this Article shall be: 

  

	 	1.	With respect to the determination for Contract Year 2: actual Written Premium from the effective date of this Contract, being January 1, 2014 through September 30, 2014 plus projected Written Premium from
October 1, 2014 through December 31, 2015, and 

  

	 	2.	With respect to the determination for Contract Year 3: actual Written Premium from the effective date of this Contract, being January 1, 2014 through September 30, 2015 plus projected Written Premium from
October 1, 2015 through December 31, 2016. 

  

	 	3.	To the extent that the ratio of Written Premium for each of the Governing Class Groups enumerated in subparagraph 5 below to Written Premium in total, both figures as calculated above, is within the applicable ranges
listed in subparagraph 5, no Material Change in Business Covered shall have been deemed to occur and the operation of this Contract shall continue without change or modification. 

 

	 	4.	To the extent that the ratio of Written Premium for any of the Governing Class Groups enumerated in subparagraph 5 below to Written Premium in total, both figures as calculated above, is outside the applicable ranges
listed in subparagraph 5, 01’ to the extent that the Logging component of the Lumber Governing Class Group exceeds five percentage points of Written Premium in total, a Material Change in Business Covered shall have been deemed to occur.

  

	 	5.	The Governing Class Groups and their applicable ranges shall be as follows: 

 Construction - No
less than 20% nor more than 50% 
 Trucking - No less than 2.5% nor more than 35% 

Lumber - No less than 2.5% nor more than 17.5% 

Roofing - No less than 2.5% nor more than 17.5% 

Manufacturing - No less than 1.0% nor more than 15%. 
  

 All such ratios being calculated as total Written Premium for the enumerated Governing Class
Groups as calculated under paragraph B above for the period specified therein divided by total Written Premium for all Governing Class Groups as calculated under paragraph B above for the period specified therein. 

 

	C.	The Company shall provide to Reinsurer, no later than October 15 of each of 2014 and 2015, a calculation of Policy Year Manual Payroll (excluding clerical) for the current Contract Year. Policy Year Manual Payroll
(excluding clerical) for purposes of this Article shall be: 

  

	 	1.	With respect to the determination for Contract Year 2: actual policy year manual payroll from the effective date of this Contract, being January 1,2014 through September 30, 2014 plus projected policy
year manual payroll from October 1,2014 through December 31, 2014, in each case excluding policy year manual payroll in Manual Class Codes 8810 and 953, and 

 

	 	2.	With respect to the determination for Contract Year 3: actual policy year manual payroll from the first day of Contract Year 2, being January 1, 2015 through September 30, 2015 plus projected policy year
manual payroll from October 1, 2015 through December 31, 2015, in each case excluding policy year manual payroll in Class Codes 8810 and 953. 

  

	 	3.	To the extent that Policy Year Manual Payroll (excluding clerical) as determined above for Contract Year 2 is less than or equal to $5,139,600,000, no Material Change in Business Covered shall have been deemed to occur
and the operation of this Contract shall continue without change or modification. 

  

	 	4.	To the extent that Policy Year Manual Payroll (excluding clerical) as determined above for Contract Year 2 is more than $5,139,600,000, a Material Change in Business Covered shall have been deemed to occur.

  

	 	5.	To the extent that Policy Year Manual Payroll (excluding clerical) as determined above for Contract Year 3 is less than or equal to $5,782,050,000, no Material Change in Business Covered shall have been deemed to occur
and the operation of this Contract shall continue without change or modification. 

  

	 	6.	To the extent that Policy Year Manual Payroll (excluding clerical) as determined above for Contract Year 3 is more than $5,782,050,000, a Material Change in Business Covered shall have been deemed to occur.

  

	D.	A Material Change shall have been deemed to occur if the Company acquires, during the term of this Contract, any insurance or reinsurance company having annual subject premium of $20,000,000 or more. 

 

	E.	If a Material Change has been deemed to occur under paragraphs B, C or D above for any Contract Year, Company and Reinsurer shall mutually agree to such modifications of this contract as shall be deemed necessary to
reflect the Material Change, including but not limited to, changes in Exclusions, Reinsurance Premium, the Company’s annual aggregate deductible, the Reinsurer’s fixed expenses or any other Contract features or the adoption of new
limitations or changes in coverage. 

	F.	If a Material Change has been deemed to occur under paragraphs B or C above for either Contract Year 2 or Contract Year 3, and the Company and Reinsurer are not able to mutually agree to the necessary modifications
described in paragraph E above, then the Reinsurer may cancel the Contract at the end of Contract Year I or Contract Year 2 as applicable, by the provision of 45 calendar days prior written notice by certified mail. If such notice of cancellation is
not received, the operation of this Contract shall continue without change. 

  

	G.	In the event of termination in accordance with paragraph F, above, paragraph C of the SPECIAL TERMINATION ARTICLE shall apply with respect to the calculation of the contract terms listed therein. 

 

	H.	If a Material Change has been deemed to occur under paragraph D above for any Contract Year and the Company and Reinsurer are not able to mutually agree to the necessary modifications described in paragraph E above,
then this Contract shall not apply to the acquired company and any business written by such acquired company shall be excluded. 

ARTICLE X 
 REINSURANCE
PREMIUM 
  

	A.	As premium for the reinsurance provided hereunder, the Company shall pay the Reinsurer 2.1% of its Net Earned Premium for each Contract Year during the term of this Contract, subject to a minimum annual premium of
$5,546,000. 

  

	B.	The Company shall pay the Reinsurer a deposit premium of $6,932,000 for Contract Year 1; $7,279,000 for Contract Year 2; and $7,643,000 for Contract Year 3. The deposit premium for each Contract Year will be paid in
four equal installments on each January 1, April 1, July 1 and October 1 of the respective Contract Year. 

  

	C.	The Reinsurer shall allow the Company a 30.0% commission on all premiums ceded to the Reinsurer hereunder. The Company shall allow the Reinsurer return commission on return premiums at the same rate. 

 

	D.	Within 90 days after the expiration of each Contract Year, the Company shall provide a report to the Reinsurer setting forth the premium due hereunder, computed in accordance with paragraph A, and any additional premium
due the Reinsurer or return premium due the Company shall be remitted within 15 days of receipt of such report. 

ARTICLE XI 
 FUNDS WITHHELD
ACCOUNT 
  

	A.	 At the subscribing reinsurer’s option, the Company shall retain any and all Reinsurance Premiums due hereunder on a Funds Withheld basis,
provided however that payment of the subscribing reinsurer’s fixed expenses at a rate of 22.5% of the Reinsurance Premium shall 

	 	
be paid in cash to the subscribing reinsurer at such time as the respective Reinsurance Premiums are due and shall not be affected by the terms of this FUNDS WITHHELD ACCOUNT ARTICLE.

  

	B.	In consideration of the subscribing reinsurer choosing this Funds Withheld option, the Company agrees (i) to calculate a Notional Funds Withheld Account Balance from the inception of this Contract until there is a
complete and final release of all of the Reinsurer’s obligations to the Reinsured under this Contract and (ii) that the Notional Funds Withheld Account Balance (as defined below) may be offset by the Reinsurer against liability of any
nature whatsoever (whether then contingent, due and payable, or in the future becoming due) that it may then have, or in the future may have, under this Contract and (iii) such offset shall occur as a condition precedent to any payments by the
Reinsurer hereunder. 

  

	C.	As of the close of each calendar quarter, and at any other time as required, the Company shall calculate the balance of the Notional Funds Withheld Account as follows: 

 

	 	1.	100% of the balance of the Notional Funds Withheld Account from the immediately preceding calendar quarter (at the Inception Date of this Contract, the starting balance is zero); less 

 

	 	2.	100% of the Company’s Ultimate Net Loss paid or deemed paid by the Reinsurer since the preceding calendar quarter; plus 

  

	 	3.	The Reinsurance Premium deemed received by the Reinsurer since the preceding calendar quarter; less 

  

	 	4.	The Ceding Commission deemed paid by the Reinsurer since the preceding calendar quarter; less 

  

	 	5.	The Reinsurer’s fixed expenses at a rate of 22.5% of (3); plus 

  

	 	6.	The interest credit since the preceding calendar quarter. Such interest credit shall be equal to the result of the “interest crediting rate” applied to the quarter end sum of [1 minus 2 plus 3 minus 4 minus
5]. 

 The interest crediting rate shall be equal to one fourth (.25) of the greater of: 

 

	 	a.	The five (5) year U.S. Treasury note rate as published in the Wall Street Journal on the first business day of each Contract Year minus fifty (50) basis points, or 

 

	 	b.	4.0%. 

  

	E.	If the Contract has not been commuted by December 31, 2019, a subscribing reinsurer may terminate the Funds Withheld election under this FUNDS WITHHELD ACCOUNT ARTICLE at their option on July 1, 2020 or on
each January 1st or July 1st subsequent to that date (the Reversion Date) by giving 90 days written notice to the Company. 

 Following receipt of written notice to terminate the Funds Withheld election, the Company will
calculate the Notional Funds Withheld Account Balance as of the Reversion Date and remit such balance to the reinsurer within 15 days. Subsequent to such termination, the Notional Experience Account Balance will be calculated on a funds transferred
basis. 
  

	F.	A subscribing reinsurer may terminate the Funds Withheld election under this FUNDS WITHHELD ACCOUNT ARTICLE by giving 15 days written notice to the Company upon the happening of any one of the following circumstances:

  

	 	1.	A State Insurance Department or other legal authority orders the Company to cease writing business, or 

  

	 	2.	The Company has become merged with, acquired or controlled by any company, corporation, or individual(s) not controlling the subscribing reinsurer’s operations previously, or 

 

	 	3.	The Company receives an A. M. Best rating of lower than B + +, or 

  

	 	4.	American Interstate Insurance Company’s total adjusted capital is less than 225% of its authorized control level risk based capital. 

Following receipt of written notice to terminate the Funds Withheld election, the Company will calculate the Notional Funds Withheld Account
Balance as of that date and remit such balance to the reinsurer within 15 days. Subsequent to such termination, the Notional Experience Account Balance will be calculated on a funds transferred basis. 

 

	G.	For all avoidance of doubt, it is intended that if a subscribing reinsurer chooses the Funds Withheld option as described above then the Notional Funds Withheld Account Balance as calculated above at any date shall
equal the subscribing reinsurer’s share of the Notional Experience Account, as calculated in the NOTIONAL EXPERIENCE ACCOUNT ARTICLE as of that same date. 

ARTICLE XII 
 NOTICE OF LOSS
AND LOSS SETTLEMENTS 
 All loss settlements made by the Company that are within the terms and conditions of this Contract (including but not limited
to ex gratia payments) shall be binding upon the Reinsurer, and the Reinsurer agrees to pay all amounts for which it may be liable upon receipt of satisfactory evidence of the amount paid by the Company. Upon receipt of the Summary Report as
described below in the REPORTS AND REMITTANCES ARTICLE, the Reinsurer agrees to promptly payor allow, as the case may be, its share of each such settlement in accordance with this Contract. 

ARTICLE XIII 

 LIABILITY OF REINSURERS 

All reinsurances for which the Reinsurer shall be liable by virtue of this Contract shall be subject in all respects to the same rates, terms, conditions,
interpretations and waivers and to the same modifications, alterations, and cancellations, as the respective policies to which such reinsurances relate, the true intent of the parties to this Contract being that the Reinsurer shall follow the
fortunes of the Company. 
 ARTICLE XIV 

LATE PAYMENTS 
 (The provisions of this article
shall not be implemented unless specifically invoked, in writing, by one of the parties to the Contract.) 
  

	A.	In the event any premium, loss or other payment due either party is not received by the Intermediary hereunder by the payment due date, the party to whom payment is due may, by notifying the Intermediary in writing,
require the debtor party to pay, and the debtor party agrees to pay, an interest penalty on the amount past due calculated for each such payment on the last business day of each month as follows: 

 

	 	1.	The number of full days which have expired since the due date or the last monthly calculation, whichever the lesser; times 

  

	 	2.	1/365ths of a rate equal to the 90-day Treasury Bill rate as published in The Wall Street Journal on the first business day following the date a remittance becomes due plus 300 basis points; times

  

	 	3.	The amount past due, including accrued interest. 

 It is agreed that interest shall accumulate
until payment of the original amount due plus interest penalties have been received by the Intermediary. 
  

	B.	The establishment of the due date shall, for purposes of this Article, be determined as follows: 

  

	 	1.	As respects the payment of deposits and premiums due the Reinsurer, the due date shall be as provided for in the applicable section of this Contract. 

 

	 	2.	As respects any claim or loss payment due the Company, the due date shall be as provided for in the applicable section of this Contract. 

 

	 	3.	As respects any payment, adjustment or return due either party not otherwise provided for in subparagraphs 1 and 2 of this paragraph, the due date shall be as provided for in the applicable section of this Contract.

  

	C.	For purposes of interest calculation only, amounts due hereunder shall be deemed paid upon receipt by the Intermediary. The validity of any claim or payment may be contested under the provisions of this Contract. If the
debtor party prevails in arbitration, or any other proceeding, there shall be no interest penalty due. Otherwise, any interest will be calculated and due as outlined above. 

	D.	Interest penalties arising out of the application of this Article that are $100 or less from any party shall be waived unless there is a pattern of late payments consisting of three or more items over the course of any
12-month period. 

 ARTICLE XV 

REPORTS AND REMITTANCES 
  

	A.	Quarterly Reports and Remittances: 

  

	 	1.	While this Contract is in force, within 60 calendar days from the end of each calendar quarter, the Company shall supply to the Reinsurer a Quarterly Statement, as filed with the Nebraska Department of Insurance and a
Summary Report listing: 

  

	 	a.	The Company’s quarterly Net Earned Premium. 

  

	 	b.	The aggregate amount of Ultimate Net Loss, including paid, case outstanding, and IBNR components of this total. 

  

	 	c.	The portion of paid, case outstanding, and IBNR Ultimate Net Loss ceded under this Contract from inception of this Contract and for the quarter. 

 

	 	d.	Claims reserved by the Company at 50% of its retention hereunder. 

  

	 	e.	A report showing the Notional Funds Withheld Account Balance as calculated in the FUNDS WITHHELD ACCOUNT ARTICLE (if applicable). 

All for business covered during the term of this Contract as reflected in the Quarterly Statement. 

 

	 	2.	While this contract is in force, within 60 calendar days from the end of each calendar quarter, the subscribing reinsurers shall supply to the Company a report showing the Notional Experience Account Balance as
calculated in the NOTIONAL EXPERIENCE ACCOUNT ARTICLE. 

  

	 	3.	Quarterly within 5 business days from the beginning of each calendar quarter, the Company shall pay to the Reinsurer the reinsurance premium as stipulated in the REINSURANCE PREMIUM ARTICLE. 

 

	 	4.	Payment to the Company of quarterly ceded paid loss amounts due from the Reinsurer, or payment to the Reinsurer of quarterly ceded paid loss adjustments due from the Company, shall be in arrears and shall be made within
45 calendar days from actual receipt by the Reinsurer of the Summary Report in paragraph A.l, above. 

  

	B.	The Company shall furnish to the Reinsurer, upon its written request, any and all actuarial, accounting or statistical data as may be required by the Reinsurer for regulatory filing purposes, reserve setting or any
other reasonable purpose. 

 ARTICLE XVI 

COMMUTATION 
  

	A.	The Reinsurer may cancel and commute this Contract at any time with 90 calendar days advance written notice by certified mail, but only in the event(s) of: 

 

	 	1.	Payment by the Reinsurer of the overall aggregate limit; or 

  

	 	2.	Failure by the Company to pay any amounts when due under this Contract, if such default is not cured within 30 calendar days following receipt by certified mail by the Company of notice of such default from the
subscribing reinsurer. 

  

	B.	At any time after expiration or termination of this Contract the Company may commute this Contract with 90 calendar days advance written notice by certified mail, but only if the Notional Experience Account balance is
greater than zero. 

  

	C.	As provided within the SPECIAL TERMINATION ARTICLE, upon the Company’s termination of a subscribing reinsurer’s share in the Contract upon the happening of anyone of the enumerated circumstances, the Company
has the option, but not the obligation, to commute this Contract with written notice. 

  

	D.	Upon Commutation by the Reinsurer in accordance with paragraph A, above, or Commutation by the Company in accordance with paragraph B, above, the following shall occur: 

 

	 	1.	The Notional Experience Account balance shall be calculated, as stipulated in the NOTIONAL EXPERIENCE ACCOUNT ARTICLE, as of the date of commutation. If the date of commutation is prior to December 31, 2019, the
Notional Experience Account balance shall be calculated using a reinsurer’s fixed expense rate of 21.5% in place of the 22.5% indicated in the NOTIONAL EXPERIENCE ACCOUNT ARTICLE. Under such circumstances, this same 21.5% rate shall also be
used in calculating the balance of the Funds Withheld Account under the FUNDS WITHHELD ACCOUNT ARTICLE such that the two account balances for any subscribing reinsurer that has elected the Funds Withheld option shall be equal. 

 

	 	2.	The “Commutation Settlement Amount” will be equal to the amount under paragraph D.1, above, and the Reinsurer shall remit to the Company this Commutation Settlement Amount within 5 U.S. business days following
such calculation. 

  

	 	3.	Upon receipt of the Commutation Settlement Amount, the Company shall provide the Reinsurer with a complete and final release of any further liability under this Contract, or so deemed; concurrently, the Company shall
release any Letters of Credit provided by the Reinsurer under the UNAUTHORIZED REINSURANCE ARTICLE. In the event that any or all Letters of Credit have not been released within 5 business days of the receipt of the Commutation Settlement Amount, it
is agreed that the Reinsurer can bill the Company at any time and the Company has to pay to the Reinsurer an annualized fee of 200 bps on the amount of any Letters of Credit not released 5 business days after the receipt of the Commutation
Settlement Amount. 

  

	E.	 Upon Commutation by the Company in accordance with paragraph C above and the SPECIAL TERMINATION ARTICLE, the Commutation Settlement Amount shall be
the greater of the 

	 	
amount calculated in paragraph D or the net present value of outstanding ceded reserves including incurred but not reported losses. 

If the Reinsurer disputes the Commutation Settlement Amount established by the Company under this paragraph E, then such dispute shall be
settled by a panel of three actuaries, one to be chosen by each party and the third by the two so chosen. If either party refuses or neglects to appoint an actuary within 30 days, the other party may appoint two actuaries. If the two actuaries fail
to agree on the selection of a third actuary within 30 days of their appointment, each of them shall name two, of whom the other shall decline one and the decision shall be made by drawing lots. All the actuaries shall be Fellows of the Casualty
Actuarial Society or members of the American Academy of Actuaries. All of the actuaries shall be independent of either party to this Contract. Each party shall bear the cost of their appointed actuary (or actuary appointed for them if they fail to
make a timely appointment) and shall share the cost evenly of the third actuary. 
 The settlement agreed upon by a majority of the panel of
actuaries shall be final and binding on both parties and set forth in a sworn written document expressing their professional opinion that said value is fair for the complete mutual release of all liabilities in respect of such reserves. 

ARTICLE XVII 
 NOTIONAL
EXPERIENCE ACCOUNT 
 As of the close of each calendar quarter, and at any other time as stipulated in the COMMUTATION ARTICLE, the subscribing
reinsurer shall calculate the value of the Notional Experience Account as follows: 
  

	 	1.	100% of the balance of the Notional Experience Account from the immediately preceding calendar quarter (at the Inception Date of this Contract, the starting balance is zero); less 

 

	 	2.	100% of the Company’s Ultimate Net Loss paid by the Reinsurer since the preceding calendar quarter; plus 

  

	 	3.	The Reinsurance Premium received by the Reinsurer since the preceding calendar quarter; less 

  

	 	4.	The Ceding Commission paid by the Reinsurer since the preceding calendar quarter; less 

  

	 	5.	The Reinsurer’s fixed expenses at a rate of 22.5% of (3); plus 

  

	 	6.	The interest credit since the preceding calendar quarter. Such interest credit shall be equal to the result of the “interest crediting rate” applied to the quarter end sum of [1 minus 2 plus 3 minus 4 minus
5]. 

 The interest crediting rate shall be equal to one fourth (0.25) of: 

	 	a.	The five (5) year U.S. Treasury note rate as published in the Wall Street Journal on the first business day of each Contract Year minus fifty (50) basis points if the subscribing reinsurer elects to receive
premium on a funds transferred basis, or 

  

	 	b.	The greater of the five (5) year U.S. Treasury note rate as published in the Wall Street Journal on the first business day of each Contract Year minus fifty (50) basis points, or 4.0% if the subscribing
reinsurer elects the provisions of the FUNDS WITHHELD ACCOUNT ARTICLE. 

 ARTICLE XVIII 

ANNUITIES AT THE COMPANY’S OPTION 
  

	A.	Whenever the Company is required, or elects, to purchase an annuity or to negotiate a structured settlement, either in satisfaction of a judgment or in an out-of-court settlement or otherwise, the cost of the annuity or
the structured settlement, as the case may be, shall be deemed part of the Company’s Ultimate Net Loss. 

  

	B.	The terms “annuity” or “structured settlement” shall be understood to mean any insurance policy, lump sum payment, agreement or device of whatever nature resulting in the payment of a lump sum by the
Company in settlement of any or all future liabilities which may attach to it as a result of an occurrence. 

  

	C.	In the event the Company purchases an annuity which insures in whole or in part to the benefit of the Reinsurer, it is understood that the liability of the Reinsurer is not released thereby. In the event the Company is
required to provide benefits not provided by the annuity for whatever reason, the Reinsurer shall pay its share of any loss. 

ARTICLE XIX 
 SUNSET

 Seven (7) years after the expiration of this Contract (i.e., January 1,2024), the Company shall advise the Reinsurer of any Loss Occurrences
attaching to this Contract which have not been finally settled and which may result in a claim by the Company under this Contract. No liability shall attach hereunder for any claim or claims not reported to the Reinsurer within this 7-year period.
If a loss arising out of a Loss Occurrence is reported during this period, all losses arising out of the same Loss Occurrence shall be deemed reported under this paragraph regardless of when notification of loss is provided. 

If the Notional Experience Account balance is positive and the Company does not commute this Contract on or before December 31, 2023, the Company shall
pay to the Reinsurer in cash each January 1, beginning January 1, 2024, an annual charge equal 200 basis points times the then current balance in the Notional Experience Account. 

ARTICLE XX 
 SUBROGATION

 The Reinsurer shall be credited with subrogation or salvage recoveries (i.e., reimbursement obtained or recovery
made by the Company, less Loss Adjustment Expense incurred in obtaining such reimbursement or making such recovery) on account of claims and settlements involving reinsurance hereunder. Subrogation or salvage recoveries 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, at its sole option and discretion, may enforce its
rights to subrogation relating to any loss, a part of which loss was sustained by the Reinsurer, and may prosecute all claims arising out of such rights. 

ARTICLE XXI 
 ERRORS AND
OMISSIONS 
 Any inadvertent delay, omission or error shall not be held to relieve either party hereto from any liability which would attach to it
hereunder if such delay, omission or error had not been made, provided such omission or error is rectified upon discovery. 
 ARTICLE
XXII 
 OFFSET 
 The Company and each
subscribing reinsurer may offset any balance or amount due from one party to the other under this Contract or any other contract heretofore or hereafter entered into between the Company and such subscribing Reinsurer, whether acting as assuming
reinsurer or ceding company. The party asserting the right of offset may exercise such right any time whether the balances due are on account of premiums or undisputed losses or otherwise. 

ARTICLE XXIII 
 CURRENCY

  

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

 In consideration of the terms under which this Contract 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, the District of Columbia or Canada. 

 ARTICLE XXV 

FEDERAL EXCISE TAX 
 (Applicable to those
subscribing reinsurers, excepting subscribing reinsurers exempt from Federal Excise Tax, who are domiciled outside the United States of America.) 
  

	A.	The subscribing 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 subscribing 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 XXVI 

NET RETAINED LINES 
  

	A.	This Contract applies only to that portion of any Policy which the Company retains net for its own account and, in calculating the amount of any loss hereunder and also in computing the amount or amounts in excess of
which this Contract attaches, only loss or losses in respect of business covered 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 XXVII 
 THIRD PARTY
RIGHTS 
 This Contract is solely between the Company and the Reinsurer, and in no instance shall any other party have any rights under this Contract
except as expressly provided otherwise in the INSOLVENCY ARTICLE. 
 ARTICLE XXVIII 

SEVERABILITY 
 If any provision of this Contract
shall be rendered illegal or unenforceable by the laws or regulations 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 Contract or the
enforceability of such provision in any other jurisdiction. 

 ARTICLE XXIX 

GOVERNING LAW 
 This Contract shall be governed as
to performance, administration and interpretation by the laws of the State of Nebraska, exclusive of that state’s rules with respect to conflicts of law, except as to rules with respect to credit for reinsurance in which case the applicable
rules of all states shall apply. 
 ARTICLE XXX 

ACCESS TO RECORDS 
 The Reinsurer or its designated
representatives shall have access to and can make reasonable copies of the books and records of the Company on matters relating to this reinsurance at all reasonable times for the purpose of obtaining information concerning this Contract or the
subject matter hereof. 
 ARTICLE XXXI 

CONFIDENTIALITY 
 The Reinsurer, except with the
express prior written consent of the Company, shall not directly or indirectly, communicate, disclose or divulge to any affiliated company, or to any third party, any knowledge or information that may be acquired either directly or indirectly during
the placement of this contract or obtained as a result of a claims or underwriting the inspection of the Company’s books, records and papers for the purpose of this Contract. The restrictions as outlined in this Article shall not apply to
communication or disclosures that the Reinsurer is required to make to its statutory auditors, retrocessionaires, legal counsel, consulting actuaries, arbitrators involved in any arbitration procedures under this Contract or disclosures required
upon subpoena or other duly-issued order of a court or other governmental agency or regulatory authority. 
 The
following information shall not be subject to this Article: 
 Information that is or becomes publicly available or in the public domain,
unless due to an unauthorized act or omission on the part of the Reinsurer or by other persons permitted to receive such information under this Article, in violation of this Contract. 

Information in the possession of the Reinsurer or any other persons permitted to receive such information under this Article that prior to
disclosure by the Company, was not known by the Reinsurer to have been provided on a confidential basis. 
 Information that was
independently created or derived by the Reinsurer without reference to or reliance upon confidential information. 
 ARTICLE XXXII

 INSOLVENCY 
  

	A.	 In the event of the insolvency of the Company, this reinsurance shall be payable directly to the Company or to its liquidator, receiver, conservator
or statutory successor, with reasonable 

	 	
provision for verification, on the basis of reported claims allowed by the liquidation court 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 proportionate share of the benefit which may accrue to the Company solely as a result of the defense undertaken by the Reinsurer. Where two or more subscribing reinsurers are involved in the same claim
and a majority in interest elects to interpose defense to such claim, the expense shall be apportioned in accordance with the terms of this Contract as though such expense had been incurred by the Company. 

 

	B.	It is further agreed that, in the event of the insolvency of the Company, the reinsurance under this Contract shall be payable directly by the Reinsurer to the Company or its liquidator, receiver, conservator, or
statutory successor, except (I) where this Contract 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 payee under such Policies and in substitution for the obligations of the Company to such payees. 

 

	C.	In the event of the insolvency of any company or companies listed in the designation of “Company” under this Contract, this Article shall apply only to the insolvent company or companies. 

ARTICLE XXXIII 
 ARBITRATION

  

	A.	As a condition precedent to any right of action hereunder, any irreconcilable dispute arising out of the interpretation, performance or breach of this Contract, including the formation or validity thereof, whether
arising before or after the expiry or termination of the Contract, shall be submitted for decision to a panel of 3 arbitrators. Notice requesting arbitration will be in writing and sent by certified mail, return receipt requested, or such reputable
courier service as is capable of returning proof of receipt of such notice by the recipient to the party demanding arbitration. 

  

	B.	The Company shall have the option to either litigate or arbitrate where: 

  

	 	1.	The Reinsurer makes any allegation of misrepresentation, non-disclosure, concealment, fraud or bad faith; or 

	 	2.	The Reinsurer experiences any of the circumstances set forth in subparagraphs 1 through 7 of paragraph A of the SPECIAL TERMINATION ARTICLE. 

 

	C.	One arbitrator shall be appointed by each party. If either party fails to appoint its arbitrator within 30 days after being requested to do so by the other party, the latter, after 10 days’ notice by certified mail
or reputable courier as provided above of its intention to do so, may appoint the second arbitrator. 

  

	D.	The two arbitrators shall, before instituting the hearing, appoint an impartial third arbitrator who shall preside at the hearing. If the 2 arbitrators are unable to agree upon the third arbitrator within 30 days of
their appointment, the Company shall petition the American Arbitration Association to appoint the third arbitrator. If the American Arbitration Association fails to appoint the third arbitrator within 30 days of being requested to do so, either
party may request a district court judge of the federal district court having jurisdiction over the geographical area in which the arbitration is to take place, or if the federal court declines to act, the state court having general jurisdiction in
such area to select the third arbitrator from a list of 6 individuals (3 named by each arbitrator previously appointed). All arbitrators shall be disinterested active or former senior executives of insurance or reinsurance companies or Underwriters
at Lloyd’s, London. 

  

	E.	Within 30 days after notice of appointment of all arbitrators, the panel shall meet and determine timely periods for briefs, discovery procedures and schedules for hearings. The panel shall be relieved of all judicial
formality and shall not be bound by the strict rules of procedure and evidence. Unless the panel agrees otherwise, arbitration shall take place in Omaha, Nebraska but the venue may be changed when deemed by the panel to be in the best interest of
the arbitration proceeding. Insofar as the arbitration panel looks to substantive law, it shall consider the law of the State of Nebraska. The decision of any 2 arbitrators when rendered in writing shall be final and binding. The panel is empowered
to grant interim relief as it may deem appropriate. 

  

	F.	The panel shall make its decision considering the custom and practice of the applicable insurance and reinsurance business as promptly as possible following the termination of the hearings. 1udgment upon the award may
be entered in any court having jurisdiction thereof. 

  

	G.	If more than one subscribing reinsurer is involved in arbitration where there are common questions of law or fact and a possibility of conflicting awards or inconsistent results, all such subscribing 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 subscribing reinsurers constituting the one party; provided, however, that nothing therein shall impair the rights of such
subscribing reinsurers to assert several, rather than joint defenses or claims, nor be construed as changing the liability of the subscribing reinsurers under the terms of this Contract from several to joint. 

 

	H.	 Each party shall bear the expense of its own arbitrator and shall jointly and equally bear with the other party the cost of the third arbitrator. The
remaining costs of the arbitration shall be allocated by the panel. The panel may, at its discretion, award such further costs and 

	 	
expenses as it considers appropriate, including but not limited to attorney’s fees, to the extent permitted by law. 

ARTICLE XXXIV 
 UNAUTHORIZED
REINSURANCE 
 (Applies only to a subscribing reinsurer who does not qualify for full credit with any insurance regulatory authority having
jurisdiction over the Company’s reserves.) 
  

	A.	As regards Policies or bonds issued by the Company coming within the scope of this Contract, the Company agrees that when it shall file with the insurance regulatory authority or set up on its books reserves for losses
covered hereunder which it shall be required by law to set up, it will forward to the subscribing reinsurer a statement showing the proportion of such reserves which is applicable to the subscribing reinsurer. The subscribing reinsurer hereby agrees
to fund such reserves in respect of known outstanding losses that have been reported to the subscribing reinsurer and allocated loss adjustment expense relating thereto, losses and allocated loss adjustment expense paid by the Company but not
recovered from the subscribing reinsurer, plus reserves for losses incurred but not reported as per the Company’s statutory accounts, unearned premium and any positive Notional Experience Account balance accrued by the Company, as shown in the
statement prepared by the Company (hereinafter referred to as “subscribing reinsurer’s obligations”) by funds withheld, cash advances, qualified trust, or a Letter of Credit. The subscribing reinsurer shall have the option of
determining the method of funding provided it is acceptable to the insurance regulatory authorities having jurisdiction over the Company’s reserves. All costs associated with the method of funding shall be borne solely by the subscribing
reinsurer. However, where the subscribing reinsurer elects and continues to fund under the FUNDS WITHHELD ACCOUNT article, the Company shall bear the cost associated with any funding that is required in excess of the funds withheld account.

  

	B.	When funding by a Letter of Credit, the subscribing reinsurer agrees to apply for and secure timely delivery to the Company of a clean, irrevocable and unconditional Letter of Credit issued by a bank and containing
provisions acceptable to the insurance regulatory authorities having jurisdiction over the Company’s reserves in an amount equal to the subscribing reinsurer’s proportion of said reserves. Such Letter of Credit shall be issued for a period
of not less than one year, and shall be automatically extended for one year from its date of expiration or any future expiration date unless 30 days (60 days where required by insurance regulatory authorities) prior to any expiration date the
issuing bank shall notify the Company by certified or registered mail that the issuing bank elects not to consider the Letter of Credit extended for any additional period. 

 

	C.	The subscribing reinsurer and Company agree that the Letters of Credit provided by the subscribing reinsurer pursuant to the provisions of this Contract may be drawn upon at any time, notwithstanding any other provision
of this Contract, and be utilized by the Company or any successor, by operation of law, of the Company including, without limitation, any liquidator, rehabilitator, receiver or conservator of the Company for the following purposes, unless otherwise
provided for in a separate Trust Agreement: 

	 	1.	To reimburse the Company for the subscribing reinsurer’s obligations, the payment of which is due under the terms of this Contract and which has not been otherwise paid; 

 

	 	2.	To make refund of any sum which is in excess of tile actual amount required to pay the subscribing reinsurer’s obligations under this Contract; 

 

	 	3.	To fund an account with the Company for the subscribing reinsurer’s obligations. Such cash deposit shall be held in an interest bearing account separate from the Company’s other assets, and interest thereon
not in excess of the prime rate shall accrue to the benefit of the subscribing reinsurer; 

  

	 	4.	To pay the subscribing reinsurer’s share of any other amounts the Company claims are due under this Contract. 

In the event the amount drawn by the Company on any Letter of Credit is in excess of the actual amount required for subparagraph 1 or 3 or, in
the case of subparagraph 4, the actual amount determined to be due, the Company shall promptly return to the subscribing reinsurer the excess amount so drawn. All of the foregoing shall be applied without diminution because of insolvency on the part
of the Company or the subscribing reinsurer. 
  

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

  

	E.	At quarterly intervals and immediately following each reinsurance premium payment, the Company shall prepare a specific statement of the subscribing reinsurer’s obligations, for the sole purpose of amending the
Letter of Credit as set forth in subparagraphs 1 and 2 below. For avoidance of doubt, the subscribing reinsurer’s obligation under this paragraph E shall include any positive balance of the Notional Experience Account as calculated under the
NOTIONAL EXPERIENCE ACCOUNT ARTICLE: 

  

	 	1.	If the statement shows that the subscribing reinsurer’s obligations exceed the balance of credit as of the statement date, the subscribing reinsurer shall, within 30 days after receipt of notice of such excess,
secure delivery to the Company of an amendment to the Letter of Credit increasing the amount of credit by the amount of such difference. 

  

	 	2.	If, however, the statement shows that the subscribing reinsurer’s obligations are less than the balance of credit as of the statement date, the Company shall, within 30 days after receipt of written request from
the subscribing reinsurer, release such excess credit by agreeing to secure an amendment to the Letter of Credit reducing the amount of credit available by the amount of such excess credit. 

	F.	With regard to funding in whole or in part by any Trust Account, it is agreed that the subscribing Reinsurer shall enter into a trust agreement and establish a Trust Account hereunder for the sole benefit of the Company
with a trustee (“Trustee”). The Trustee and the trust agreement shall comply with all applicable requirements of regulatory authorities having jurisdiction over the Company. 

 

	G.	The Reinsurer agrees that the assets deposited into the Trust Account shall consist only of currency of the United States of America, certificates of deposit issued by a United States bank and payable in United States
legal tender, and investments of the types specified in paragraphs (l), (2), (3), (8) and (10) of Section 1404(a} of the New York Insurance Law, provided such investments are issued by an institution that is not the parent, subsidiary
or affiliate of either the Grantor or the Beneficiary (“Authorized Investments”). 

  

	H.	The Reinsurer, prior to depositing assets with the Trustee, shall execute all assignments and endorsements in blank, and shall transfer legal title to the Trustee of all shares, obligations or any other assets requiring
assignments, in order that the Company, or the Trustee upon direction of the Company, may whenever necessary negotiate any such assets without consent or signature from the Reinsurer or any other entity. 

 

	I.	The Reinsurer shall deposit in the Trust Account Authorized investments at least equal in value to one hundred percent (100%) of the Reinsurer’s Obligations (less the value of the balance of credit available
under any Letter(s) of Credit). 

  

	J.	At quarterly intervals and immediately following each reinsurance premium payment, the Company shall determine if the Trust Account is adequately funded with respect to the Company’s liabilities reinsured under the
Contract. If the Company determines that the fair market value of the Authorized Investments held in the Trust Account is less than one hundred percent (100%) of the Reinsurer’s Obligations, the Company shall send the Reinsurer a notice
specifying the amount of the inadequacy and the Reinsurer shall deposit such amount in the Trust Account within 30 days of receipt of such notice. 

  

	K.	All settlements of account under the Trust Agreement between the Company and Reinsurer shall be made in cash or its equivalent. 

  

	L.	The Reinsurer and the Company agree that the assets in the Trust Account may be withdrawn by the Company at any time, notwithstanding any other provisions in the Contract, provided such assets are applied and utilized
by the Company or any successor of the Company by operation of law, including, without limitation, any liquidator, rehabilitator, receiver or conservator of the Company, without diminution because of the insolvency of the Company or the Reinsurer,
only for the following purposes: 

  

	 	1.	To reimburse the Company for the Reinsurer’s share of the Obligations paid by the Company under the terms and provisions of the reinsured policies; 

 

	 	2.	 To fund an account specifically established by the Company in an amount at least equal to the deduction, for reinsurance ceded, from the
Company’s liabilities ceded under this Contract. Such amount shall include, but not be limited to, amounts for policy reserves, 

	 	
and reserves for claims and losses incurred (including losses incurred but not reported); and 

  

	 	3.	To pay any other amounts, consistent with the terms of this Contract, which the Company has calculated to be due to it. 

  

	M.	If and to the extent that the laws and regulations governing the Company’s right to obtain statutory financial statement credit for the reinsurance provided pursuant to this Contract are amended such that the
Reinsurer is no longer required to secure 100% of its share of the Obligations, the Company acknowledges and agrees that the Reinsurer’s obligation to provide such security shall immediately and automatically be reduced to the extent permitted
by such amended laws and regulations. 

 ARTICLE XXXV 

SERVICE OF SUIT 
 (This Article is applicable if
the subscribing 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. This Article is not
intended to conflict with or override the obligation of the parties to arbitrate their disputes in accordance with the ARBITRATION ARTICLE.) 
  

	A.	In the event of the failure of the subscribing reinsurer to pay any amount claimed to be due hereunder, the subscribing reinsurer, at the request of the Company, shall 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 subscribing 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 subscribing reinsurer, once the appropriate court is
selected, whether such court is the one originally chosen by the Company and accepted by subscribing reinsurer or is determined by removal, transfer, or otherwise, as provided for above, shall comply with all requirements necessary to give said
court jurisdiction and, in any suit instituted against any of them upon this Contract, and shall abide by the final decision of such court or of any appellate court in the event of an appeal. 

 

	B.	The Reinsurer agrees that service of process may be made upon it via certified registered mail at the address listed by such Reinsurer on its Interests and Liabilities Agreements attached hereto. Where the Reinsurer
does not set forth the address of its agent for the service of process in its Interests and Liabilities Agreement or where such an address is given but is invalid, service may be made upon said Reinsurer via the law firm of Mendes and Mount, 750
Seventh Avenue, New York, NY 10019, regardless of where the lawsuit has been filed. 

  

	C.	 Further, pursuant to any statute of any state, territory or district of the United States that makes provision therefor, the Reinsurer hereby
designates the Superintendent, Commissioner or Director of Insurance, or other officer specified for that purpose in the statute, or his successor or successors in office, as its true and lawful attorney upon whom may be served any lawful process in
any action, suit or proceedings instituted by or on behalf of the Company or any beneficiary 

	 	
hereunder arising out of this Contract, and hereby designates the above-named as the person to whom the said officer is authorized to mail such process or a true copy thereof. 

 

	D.	Where an agent designated in Paragraph B is not permitted by the applicable law of a state with jurisdiction over the Company to accept service of process on behalf of the Reinsurer, and then the individual named in
Paragraph C shall apply to the extent necessary to bring this Article into conformity with the law of said state. 

ARTICLE XXXVI 
 MODE OF
EXECUTION 
 This Contract may be executed either by an original written ink signature of paper documents, by an exchange of facsimile copies showing
the original written ink signature of paper documents, or by electronic signature by either party employing appropriate software technology as to satisfy the parties at the time of execution that the version of the document agreed to by each party
shall always be capable of authentication and satisfy the same rules of evidence as written signatures. The use of anyone or a combination of these methods of execution shall constitute a legally binding and valid signing of this Contract. This
Contract may be executed in one or more counterparts, each of which, when duly executed, shall be deemed an original. 
 ARTICLE XXXVII

 ENTIRE AGREEMENT 
 This Contract shall
constitute the entire agreement between the parties with respect to the business being reinsured hereunder. There are no understandings between the parties other than as expressed in this Contract. Any change or modification to this Contract shall
be null and void unless made by amendment to this Contract and signed by both parties. 
 ARTICLE XXXVIII 

INTERMEDIARY 
 Willis Re Inc., 15305 North Dallas
Parkway, Suite 1100, Colonnade III, Addison, Texas 75001 is hereby recognized as the intermediary negotiating this Contract and through whom all communications relating thereto shall be transmitted to the Company or the Reinsurer. However, all
communications concerning accounts, claim information, funds and inquiries related thereto shall be transmitted to the Company or the Reinsurer through Willis Re Inc., 5420 Millstream Road, Suite 200, McLeansville, North Carolina 27301. Payments by
the Company to Willis Re Inc. shall be deemed to constitute payment to the Reinsurer and payments by the Reinsurer to Willis Re Inc. 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 Contract as of the date specified below: 

 Signed this 7th day of March, 2014.

 AMERICAN INTERSTATE INSURANCE COMPANY 
 SILVER OAK
CASUALTY, INC. 
 AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS 
  

					
	By		 /S/ C. Allen Bradley, Jr.

		
	Printed Name		 C. Allen Bradley, Jr.

		
	Title		 Chief Executive Officer

 NUCLEAR INCIDENT EXCLUSION CLAUSE - LIABILITY - REINSURANCE - U.S.A. 

(1) This reinsurance does not cover any loss or liability accruing to the Reassured as a member of, or subscriber to, any association of insurers or
reinsurers formed for the purpose of covering nuclear energy risks or as a direct or indirect reinsurer of any such member, subscriber or association, 

(2) Without in any way restricting the operation of paragraph (I) of this Clause it is understood and agreed that for all purposes of this reinsurance
all the original policies of the Reassured (new, renewal and replacement) of the classes specified in Clause II of this paragraph (2) from the time specified in Clause III in this paragraph (2) shall be deemed to include the following
provision (specified as the Limited Exclusion Provision): 
 Limited Exclusion Provision.* 

 

	I.	It is agreed that the policy does not apply under any liability coverage, 

	 	to 	(injury, sickness, disease. death or destruction, 

 (bodily injury or property damage

 with respect to which an insured under the policy is also an insured under a nuclear energy liability policy issued by Nuclear Energy
Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada, or would be on insured under any such policy but for its termination upon exhaustion of its limit of liability, 

 

	II.	Family Automobile Policies (liability only), Special Automobile Policies (private passenger automobiles, liability only), Farmers Comprehensive Personal Liability Policies (liability only). Comprehensive Personal
Liability Policies (liability only) or policies of a similar nature; and the liability portion of combination forms related to the four classes of policies stated above, such as the Comprehensive Dwelling Policy and the applicable types of
Homeowners Policies, 

  

	III.	The inception dates and thereafter of all original policies as described in II above, whether new, renewal or replacement, being policies which either 

(a) become effective on or after 1st May, 1960. or 

(b) become effective before that date and contain the Limited Exclusion Provision set out above; 

provided this paragraph (2) shall not be applicable to Family Automobile Policies, Special Automobile Policies, or policies or combination
policies of a similar nature, issued by the Reassured on New York risks, until 90 days following approval of the Limited Exclusion Provision by the Governmental Authority having jurisdiction thereof. 

(3) Except for those classes of policies specified in Clause II of paragraph (2) and without in any way restricting the operation of paragraph
(1) of this Clause, it is understood and agreed that for all purposes of this reinsurance the original liability policies of the Reassured (new, renewal and replacement) affording the following coverages: 

Owners, Landlords and Tenants liability. Contractual Liability, Elevator Liability, Owners or Contractors (including railroad) 

Protective Liability, Manufacturers and Contractors Liability, Product Liability. Professional and Malpractice Liability, Storekeepers 

Liability, Garage Liability, Automobile Liability (including Massachusetts Motor Vehicle or Garage Liability) 

shall be deemed to include, with respect to such coverages, from the time specified in Clause V of this paragraph (3), the following provision (specified as
the Broad Exclusion Provision): 
 Broad Exclusion Provision.* 

It is agreed that the policy does not apply: 
  

	I.	Under any Liability Coverage, to (injury, sickness, disease, death or destruction 

  (bodily injury or property damage 
  

	(a)	with respect to which an insured under the policy is also an insured under a nuclear energy liability policy issued by Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or
Nuclear Insurance Association of Canada, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability; or 

  

	(b)	resulting from the hazardous properties of nuclear material and with respect to which (1) any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954 or any law
amendatory thereof, or (2) the insured is, or had this policy not been issued would be, entitled to indemnity from the United States of America, or any agency thereof, under any agreement entered into by the United States of America, or any
agency thereof, with any person or organization. 

  

	II.	Under any Medical Payments Coverage, or under any Supplementary Payments Provision 

 relating to
          (immediate medical or surgical relief, 
 (first aid, to expenses
incurred with respect 
 to (bodily injury, Sickness, disease or death 

(bodily injury 
 resulting from
the hazardous properties of nuclear material and arising out of the operation of a nuclear facility by any person or organization. 

	III.	Under any Liability Coverage to    (injury, sickness, disease, death or-destruction 

 (bodily injury or property damage 

resulting from the hazardous properties of nuclear material, if 
  

	(a)	the nuclear material (1) is at any nuclear facility owned by, or operated by or on behalf of, an insured or (2) has been discharged or dispersed therefrom; 

 

	(b)	the nuclear material is contained in spent fuel or waste at any time possessed, handled, used, processed, stored, transported or disposed of by or on behalf of an insured, or 

 

	(c)	the                (injury, sickness, disease, death or destruction 

(bodily injury or property damages 

arises out of the furnishing by an insured of services, materials, parts or equipment in connection with the planning, construction,
maintenance. operation or use of any nuclear facility, but if such facility is located within the United States of America, its territories, or possessions or Canada, this exclusion (c) applies only to 

(injury to or destruction of property at such nuclear facility 

(property damage 10 such nuclear facility and any property thereat, 
  

	IV.	As used in this endorsement: 

 “Hazardous properties” include radioactive,
toxic or explosive properties; “nuclear material” means source material, special nuclear material or byproduct material; “source material,” “special nuclear material,” and “byproduct material”
have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof; “spent fuel” means any fuel clement or fuel component, solid or liquid, which has been used or exposed to radiation in a nuclear
reactor, “waste” means any waste material (1) containing byproduct material and (2) resulting from the operation by any person or organization of any nuclear facility included within the definition of nuclear facility under
paragraph (a) or (b) thereof, “nuclear facility” means 
 (a) any nuclear reactor, 

(b) any equipment or device designed or used for (1) separating the isotopes of uranium or plutonium, (2) processing or utilizing
spent fuel, or (3) handling, processing or packaging waste, 
 (c) any equipment or device used for the processing, fabricating or
alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or
any combination thereof, or more than 250 grams of uranium 235, 
 (d) any structure, basin, excavation, premises or place prepared or used
for the storage or disposal of waste, and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such 

operations; “nuclear reactor” means any apparatus designed or used to sustain nuclear fission in a self-supporting chain
reaction or to contain a critical mass of fissionable material; 
 (With respect to injury /0 or destruction of property, the word
“injury” or “destruction” 
 (“property damage” includes all forms of radioactive contamination of
property 
 (includes all forms of radioactive contamination of property, 

 

	V.	The inception dates and thereafter of all original policies affording coverages specified in this paragraph (3), whether new. renewal or replacement, being policies which become effective on or after 1st May. 1960,
provided this paragraph (3) shall not be applicable to 

 (i) Garage and Automobile: Policies issued by the Reassured on
New York risks, or 
 (ii) statutory liability insurance required under Chapter 90, General laws of Massachusetts, until 90 days following
approval of the Broad Exclusion Provision by the Governmental Authority having jurisdiction thereof. 
 (4) Without in any way restricting the operation of
paragraph (1) of this Clause, it is understood and agreed that paragraphs (2) and (3) above arc not applicable to original liability policies of the Reassured in Canada and that with respect to such policies this Clause shall be
deemed to include the Nuclear Energy Liability Exclusion Provisions adopted by the Canadian Underwriters’ Association of the Independent Insurance Conference of Canada. 
  

	*	NOTE: The words printed in italics in the Limited Exclusion Provision and in the Broad Exclusion Provision shall apply only in relation to original liability policies which include a Limited Exclusion Provision or a
Broad Exclusion Provision containing those words. 

 21/9/67 

N.M.A. 1590 
 BRMA 35A 

 INTEREST AND LIABILITIES AGREEMENT 

(the “Agreement”) 
 of

 ALLIANZ RISK TRANSFER AG (BERMUDA BRANCH) 

(The “Subscribing Reinsurer”) 

With respect to the 
 CASUALTY
EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

SILVER OAK CASUALTY, INC. 

Both of Omaha, Nebraska 

and 
 AMERICAN INTERSTATE
INSURANCE COMPANY OF TEXAS 
 Austin, Texas 

and 
 any other insurance
companies which are now or hereafter come under the ownership, 
 control or management of Amerisafe Insurance Group 

(collectively the “Company”) 
 The
Subscribing Reinsurer shall have a 25.00% share in the interests and liabilities of the “Reinsurer” as set forth in the Contract attached hereto and executed by the Company. 

This Agreement shall commence at 12:01 a.m., Standard Time, January 1, 2014 and shall continue in force until 12:01 a.m., Standard Time, January 1,
2017. 
 IT IS ALSO AGREED that the first paragraph of the CONFIDENTIALITYARTICLE shall be amended to include an exception for “affiliates
providing administrative and/or oversight functions” to read as follows: 
 CONFIDENTIALITY 

The Reinsurer, except with the express prior written consent of the Company, shall not directly or indirectly, communicate, disclose or divulge to any
affiliated company, or to any third party, any knowledge or information that may be acquired either directly or indirectly during the placement of this contract or obtained as a result of a claims or underwriting the inspection of the Company’s
books, records and papers for the purpose of this Contract. The restrictions as outlined in this Article shall not apply to communication or disclosures that the Reinsurer is required to make to its statutory auditors, retrocessionaires, legal
counsel, consulting actuaries, arbitrators involved in any arbitration procedures under this Contract or disclosures required 

 
upon subpoena or other duly-issued order of a court or other governmental agency or regulatory authority or to affiliates providing administrative and/or oversight functions. 

IT IS FURTHER AGREED that the following SANCTIONS ARTICLE shall be added to the Contract to read as follows: 

SANCTIONS 
 No Reinsurer shall be deemed to
provided cover and no Reinsurer shall be liable to pay any claim or provide any benefit hereunder to the extent that the provision of such cover, payment of such claim or provision of such benefit would expose that Reinsurer to any sanction,
prohibition or restriction under United Nations resolutions or trade or economic sanctions, laws or regulations of the European Union or United Kingdom or to any United States of America sanctions prohibition or restriction. 

The share of the Subscribing Reinsurer in the interests and liabilities of the “Reinsurer” shall be several and not joint with the share of any
other subscribing reinsurer. In no event shall the Subscribing Reinsurer participate in the interests and liabilities of the other subscribing reinsurers. 

In any action, suit or proceeding to enforce the Subscribing Reinsurer’s obligations under the attached Contract, service of process may be made upon
Corporation Service Company, 1180 Avenue of the Americas, Suite 210, New York, NY 10036, United States. 
 IN WITNESS WHEREOF, the Subscribing
Reinsurer by its duly authorized representative has executed this Agreement as of the date specified below: 
 Signed this 3rd day of March,
2014. 
  

					
	ALLIANZ RISK TRANSFER AG (BERMUDA BRANCH)
			
	By		/S/ R. Boyd		/S/ David Brula
		 	  

					
		
	Print Name		R. Boyd             David Brula
		 	  

					
			
	Title		Principal		
		 	  

 INTERESTS AND LIABILITIES AGREEMENT 

(the “Agreement”) 
 of

 HANNOVER RE (IRELAND) LIMITED 

(the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

SILVER OAK CASUALTY, INC. 

both of Omaha, Nebraska 

and 
 AMERICAN INTERSTATE
INSURANCE COMPANY OF TEXAS 
 Austin, Texas 

and 
 any other insurance
companies which are now or hereafter come under the ownership, 
 control or management of Amerisafe Insurance Group 

(collectively the “Company”) 
 The
Subscribing Reinsurer shall have a 75.00% share in the interests and liabilities of the “Reinsurer” as set forth in the Contract attached hereto and executed by the Company. 

This Agreement shall commence at 12:01 a.m., Standard Time, January 1, 2014 and shall continue in force until 12:01 a.m., Standard Time, January 1,
2017. 
 The share of the Subscribing Reinsurer in the interests and liabilities of the “Reinsurer” shall be several and not joint with the share
of any other subscribing reinsurer. In no event shall the Subscribing Reinsurer participate in the interests and liabilities of the other subscribing reinsurers. 

IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized representative has executed this Agreement as of the date specified below: 

Signed this 3rd day of March, 2014. 

 

					
	HANNOVER RE (IRELAND) LIMITED
			
	By		/S/ Thomas Denan		    Peter Nolan
		 	  

					
		
	Print Name		Thomas Denan      Peter Nolan
		 	  

			
	Title		 General Manager
            UnderwriterEX-10.31

Table of Contents

 Exhibit 10.31 

AMERICAN INTERSTATE INSURANCE COMPANY 

SILVER OAK CASUALTY, INC. 

both of Omaha, Nebraska 

and 
 AMERICAN INTERSTATE
INSURANCE COMPANY OF TEXAS 
 Austin, Texas 

and 
 any other insurance
companies which are now or hereafter come under the ownership, 
 control or management of Amerisafe, Inc. 

CASUALTY CATASTROPHE EXCESS OF LOSS 

REINSURANCE CONTRACT 

Table of Contents

 TABLE OF CONTENTS 

 

							
	 ARTICLE
	 	 	  	PAGE	 
			
	I	 	 BUSINESS COVERED
	  	 	1	  
			
	II	 	 TERM
	  	 	2	  
			
	III	 	 SPECIAL TERMINATION
	  	 	2	  
			
	IV	 	 DEFINITIONS
	  	 	4	  
			
		 	 Act of Terrorism
	  	 	4	  
			
		 	 Declaratory Judgment Expense
	  	 	4	  
			
		 	 Extra Contractual Obligations/Loss in Excess of Policy Limits
	  	 	4	  
			
		 	 Loss Adjustment Expense
	  	 	5	  
			
		 	 Loss Occurrence
	  	 	5	  
			
		 	 Net Earned Premium
	  	 	6	  
			
		 	 Policy
	  	 	6	  
			
	V	 	 TERRITORY
	  	 	6	  
			
	VI	 	 EXCLUSIONS
	  	 	7	  
			
	VII	 	 TERRORISM ACT RECOVERIES
	  	 	9	  
			
	VIII	 	 COVERAGE
	  	 	9	  
			
	IX	 	 REINSTATEMENT
	  	 	10	  
			
	X	 	 SPECIAL ACCEPTANCE
	  	 	10	  
			
	XI	 	 ACCOUNTING BASIS
	  	 	11	  
			
	XII	 	 REINSURANCE PREMIUM
	  	 	11	  
			
	XIII	 	 NOTICE OF LOSS AND LOSS SETTLEMENTS
	  	 	11	  
			
	XIV	 	 LIABILITY OF REINSURERS
	  	 	12	  
			
	XV	 	 LATE PAYMENTS
	  	 	12	  
			
	XVI	 	 ANNUITIES AT THE COMPANY’S OPTION
	  	 	13	  
			
	XVII	 	 AGENCY AGREEMENT
	  	 	14	  
			
	XVIII	 	 SUBROGATION
	  	 	14	  
			
	XIX	 	 ERRORS AND OMISSIONS
	  	 	14	  
			
	XX	 	 OFFSET
	  	 	14	  
			
	XXI	 	 CURRENCY
	  	 	15	  
			
	XXII	 	 TAXES
	  	 	15	  
			
	XXIII	 	 FEDERAL EXCISE TAX
	  	 	15	  
			
	XXIV	 	 FOREIGN ACCOUNT TAX COMPLIANCE ACT (“FATCA”)
	  	 	15	  
			
	XXV	 	 RESERVES AND FUNDING
	  	 	16	  
			
	XXVI	 	 NET RETAINED LINES
	  	 	18	  

Table of Contents

							
			
	XXVII		 THIRD PARTY RIGHTS
		 	19	  
			
	XXVIII		 SEVERABILITY
		 	19	  
			
	XXIX		 GOVERNING LAW
		 	19	  
			
	XXX		 INSPECTION OF RECORDS
		 	19	  
			
	XXXI		 CONFIDENTIALITY
		 	20	  
			
	XXXII		 SUNSET AND COMMUTATION
		 	21	  
			
	XXXIII		 INSOLVENCY
		 	22	  
			
	XXXIV		 ARBITRATION
		 	23	  
			
	XXXV		 EXPEDITED ARBITRATION
		 	25	  
			
	XXXVI		 SERVICE OF SUIT
		 	25	  
			
	XXXVII		 ENTIRE AGREEMENT
		 	26	  
			
	XXXVIII		 MODE OF EXECUTION
		 	26	  
			
	XXXIX		 INTERMEDIARY
		 	27	  
			
			 Nuclear Incident Exclusion Clause - Liability - Reinsurance - U.S.A.
				

Table of Contents

 CASUALTY CATASTROPHE EXCESS OF LOSS 

REINSURANCE CONTRACT 
 (the
“Contract”) 
 between 

AMERICAN INTERSTATE INSURANCE COMPANY 

SILVER OAK CASUALTY, INC. 

both of Omaha, Nebraska 

and 
 AMERICAN
INTERSTATE INSURANCE COMPANY OF TEXAS 
 Austin, Texas 

and 
 any other
insurance companies which are now or hereafter come under the ownership, 
 control or management of Amerisafe, Inc. 

(the “Company”) 
 and

 THE SUBSCRIBING REINSURER(S) EXECUTING THE 

INTERESTS AND LIABILITIES AGREEMENT(S) 

ATTACHED HERETO 
 (the
“Reinsurer”) 
 ARTICLE I 

BUSINESS COVERED 
  

	A.	By this Contract the Reinsurer agrees to reinsure the excess liability of the Company under its Policies that are in force at the effective time and date hereof or issued or renewed at or after that time and date, and
classified by the Company as Workers’ Compensation, Employers Liability, including but not limited to coverage provided under the U.S. Longshore and Harbor Workers’ Compensation Act, Jones Act, Outer Continental Shelf Lands Act and any
other Federal Coverage extensions, subject to the terms, conditions and limitations hereafter set forth. 

  

	B.	The Reinsurer further agrees to reinsure the excess liability of the Company under Policies issued by Cooperative Mutual Insurance Company that are in force at the effective time and date hereof or issued or renewed at
or after that time and date, and classified by the Company as Workers’ Compensation, Employers Liability, including but not limited to coverage provided under the U.S. Longshore and Harbor Workers’ Compensation Act, Jones Act, Outer
Continental Shelf Lands Act and any other Federal Coverage extensions, subject to the terms, conditions and limitations hereafter set forth. 

  
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 ARTICLE II 

TERM 
  

	A.	This Contract will apply to all losses occurring during the period January 1, 2015, 12:01 a.m. Standard Time (as set forth in the Company’s policies), to January 1, 2016, 12:01 a.m. Standard Time.

  

	B.	Upon the expiration or termination of this Contract, the entire liability of the Reinsurer for losses occurring subsequent to the date of expiration shall cease concurrently with the date of expiration of this Contract.

  

	C.	Notwithstanding the above, upon expiration or termination of this Contract, the Company shall have the option of requiring that the Reinsurer shall remain liable for losses occurring under Policies in force on the
expiration or termination date of this Contract until the next renewal, termination, or natural expiration date of such Policies or until 12 months (plus “odd time,” not to exceed 18 months in all) following the date of
expiration (whichever occurs first). 

  

	D.	If this Contract 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 Contract, be determined as if the
entire Loss Occurrence had occurred prior to the expiration of this Contract, provided that no part of such Loss Occurrence is claimed against any renewal or replacement of this Contract. 

ARTICLE III 
 SPECIAL
TERMINATION 
  

	A.	The Company may terminate a subscribing reinsurer’s share in this Contract by giving written notice to the subscribing reinsurer upon the happening of any one of the following circumstances: 

 

	 	1.	A State Insurance Department or other legal authority orders the subscribing reinsurer to cease writing business, or 

  

	 	2.	The subscribing reinsurer has become insolvent or has been placed into liquidation or receivership (whether voluntary or involuntary), or there has been instituted against it proceedings for the appointment of a
receiver, liquidator, rehabilitator, conservator, or trustee in bankruptcy, or other agent known by whatever name, to take possession of its assets or control of its operations, or 

 

	 	3.	For any period not exceeding 12 months which commences no earlier than 12 months prior to the inception of this Contract, the subscribing reinsurer’s policyholders’ surplus, as reported in the
financial statements of the subscribing reinsurer, has been reduced by 20.0% or more, or 

  
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	 	4.	The subscribing reinsurer has become merged with, acquired or controlled by any company, corporation, or individual(s) not controlling the subscribing reinsurer’s operations previously, or 

 

	 	5.	The subscribing reinsurer has reinsured its entire liability under this Contract without the Company’s prior written consent, or 

 

	 	6.	The subscribing reinsurer receives an A. M. Best rating of lower than A-, or an S&P financial strength rating of lower than A-, or

  

	 	7.	The subscribing reinsurer has ceased writing new and renewal reinsurance for the lines of business covered hereunder. 

  

	B.	In the event of such termination, the liability of the subscribing reinsurer shall be terminated, at the Company’s option, either in accordance with the cutoff provisions of paragraph B of the TERM ARTICLE or
in accordance with the runoff provisions of paragraph C of the TERM ARTICLE, and such termination shall be effective as of the date the subscribing reinsurer receives written notice of termination pursuant to paragraph A above. 

 

	C.	In the event the Company terminates a subscribing reinsurer’s share in this Contract under the provisions of this Article, the Company shall have the option to commute the excess liabilities of the subscribing
reinsurer. If this commutation option is exercised, the provisions of the paragraphs B through G of the SUNSET AND COMMUTATION ARTICLE shall apply. 

  

	D.	In the event the Company terminates a subscribing reinsurer’s share in this Contract under the provision of this Article, the Company shall have the option to require the subscribing reinsurer to fund its share of
ceded unearned premium, outstanding loss and Loss Adjustment Expense reserves, reserves for losses and Loss Adjustment Expense incurred but not reported to the Company (IBNR as determined by the Company) and any other balances or financial
obligations. Within 30 days of the Company’s written request to fund, the subscribing reinsurer shall provide to the Company a clean, unconditional, evergreen, irrevocable letter of credit or a trust agreement which establishes a trust account
for the benefit of the Company. The method of funding must be acceptable to the Company, shall be established with a financial institution suitable to the Company, shall comply with any applicable state or federal laws or regulations involving the
Company’s ability to recognize these agreements as assets or offsets to liabilities in such jurisdictions and shall be at the sole expense of the subscribing reinsurer. The Company and the subscribing reinsurer may mutually agree on alternative
methods of funding or the use of a combination of methods. This option is available to the Company at any time there remains any outstanding liabilities of the subscribing reinsurer. Notwithstanding the foregoing, the Company shall not require
funding in accordance with this subparagraph in the event the subscribing reinsurer has otherwise fully funded its obligations under this Contract in a manner acceptable to the Company. 

  
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 ARTICLE IV 

DEFINITIONS 
  

	A.	Act of Terrorism 

 “Act of Terrorism” as used herein shall follow the definition
provided under the Terrorism Risk Insurance Act of 2002 (TRIA) and as amended by the Terrorism Risk Insurance Extension Act of 2005 (TRIEA) and the Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIPRA), together and including any
extensions or replacement thereof, the “Terrorism Act.” 
 In the event the Terrorism Act is not extended or renewed, Act of
Terrorism shall mean a violent act or an act that is dangerous to human life; property; or infrastructure that 1) has resulted in damage within the United States, or outside of the United States in the case of an air carrier or vessel, 2) was
committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. The Company shall determine the
application of the above definition. 
 An “Act of Terrorism” may include an act involving the use and/or dispersal of nuclear,
chemical, biological or radiological agents. 
  

	B.	Declaratory Judgment Expense 

 “Declaratory Judgment Expense” as used herein shall
mean all expenses incurred by the Company in connection with a declaratory judgment action brought to determine the Company’s defense and/or indemnification obligations that are allocable to a specific claim subject to this Contract.
Declaratory Judgment Expense shall be deemed to have been incurred on the date of the original loss (if any) giving rise to the declaratory judgment action. 
  

	C.	Extra Contractual Obligations/Loss in Excess of Policy Limits 

  

	 	1.	Extra Contractual Obligations 

 This Contract shall protect the Company for any “Extra
Contractual Obligations” which as used herein shall mean any punitive, exemplary, compensatory or consequential damages, other than Loss in Excess of Policy Limits, paid or payable by the Company as a result of an action against it by its
insured, its insured’s assignee or a third party claimant, by reason of alleged or actual negligence, fraud or bad faith on the part of the Company in handling a claim under a Policy subject to this Contract. 

An Extra Contractual Obligation shall be deemed to have occurred on the same date as the loss covered or alleged to be covered under the
Policy. 

  
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	 	2.	Loss in Excess of Policy Limits 

 This Contract shall protect the Company for any “Loss in
Excess of Policy Limits” which as used herein shall mean an amount that the Company would have been contractually liable to pay had it not been for the limit of the original Policy as a result of an action against it by its insured, its
insured’s assignee or a third party claimant. Such loss in excess of the limit shall have been incurred because of failure by the Company to settle within the Policy limit, or by reason of alleged or actual negligence, fraud, or bad faith in
rejecting an offer of settlement or in the preparation of the defense or in the trial of any action against its insured or in the preparation or prosecution of an appeal consequent upon such action. 

 

	 	3.	This paragraph C shall not apply where an Extra Contractual Obligation and/or Loss in Excess of Policy Limits has been incurred due to an adjudicated finding of fraud committed by a member of the Board of Directors
or a corporate officer of the Company acting individually or collectively or in collusion with a member of the Board of Directors or a corporate officer or a partner of any other corporation or partnership. 

 

	D.	Loss Adjustment Expense 

 “Loss Adjustment Expense” as used herein shall mean all
costs and expenses allocable to a specific claim that are incurred by the Company in the investigation, appraisal, adjustment, settlement, litigation, defense or appeal of a specific claim, including court costs and costs of supersedeas and appeal
bonds, and including 1) pre-judgment interest, unless included as part of the award or judgment; 2) post-judgment interest; 3) legal expenses and costs incurred in
connection with coverage questions and legal actions connected thereto, including Declaratory Judgment Expense; and 4) a pro rata share of salaries and expenses of Company field employees, and expenses of other Company employees who have been
temporarily diverted from their normal and customary duties and assigned to the field adjustment of losses covered by this Contract. Loss Adjustment Expense does not include unallocated loss adjustment expense. Unallocated loss adjustment expense
includes, but is not limited to, salaries and expenses of employees, other than (4) above, and office and other overhead expenses. 
  

	E.	Loss Occurrence 

 “Loss Occurrence” as used in this Contract shall mean any one
disaster or casualty or accident or loss or series of disasters or casualties or accidents or losses arising out of or caused by one event. The Company shall be the sole judge of what constitutes one event as outlined herein and in the original
Policy. 
 As respects losses resulting from Occupational or Industrial Disease or Cumulative Trauma, each employee shall be considered a
separate Loss Occurrence subject to the following: 
 Losses resulting from Occupational or Industrial Disease or Cumulative Trauma suffered
by employees of an insured for which the employer is liable, as a result of a sudden and accidental event not exceeding 72 hours in duration, shall be considered one Loss Occurrence and may be combined with losses classified as other than
Occupational or Industrial Disease or Cumulative Trauma which arise out of the same event and the combination of such losses shall be considered as one Loss Occurrence within the meaning hereof. 

  
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 A loss with respect to each employee affected by an Occupational Disease or Cumulative Trauma
shall be deemed to have been sustained by the Company on the date of the beginning of the disability for which compensation is payable. 

The terms “Occupational or Industrial Disease” and “Cumulative Trauma” as used in this Contract shall be as defined by
applicable statutes or regulations. 
  

	F.	Net Earned Premium 

 “Net Earned Premium” as used herein is defined as gross earned
premium of the Company for the classes of business reinsured hereunder, less the earned portion of premiums ceded by the Company for reinsurance which inures to the benefit of this Contract and less dividends paid or accrued. 

 

	G.	Policy 

 “Policy” or “Policies” as used herein shall mean the Company’s
or Cooperative Mutual Insurance Company’s binders, policies and contracts providing insurance or reinsurance on the classes of business covered under this Contract. 
  

	H.	Ultimate Net Loss 

 “Ultimate Net Loss” shall mean the actual loss, including any
pre-judgment interest which is included as part of the award or judgment, “Second Injury Fund” assessments that can be allocated to specific claims, Loss Adjustment Expense, 90% of Loss in Excess of Policy Limits, and 90% of Extra
Contractual Obligations, paid or to be paid by the Company on its net retained liability after making deductions for all recoveries, subrogations and all claims on inuring reinsurance, whether collectible or not; provided, however, that in the event
of the insolvency of the Company, payment by the Reinsurer shall be made in accordance with the provisions of the INSOLVENCY ARTICLE. Nothing herein shall be construed to mean that losses under this Contract are not recoverable until the
Company’s Ultimate Net Loss has been ascertained. 
 Notwithstanding the definition of “Ultimate Net Loss” herein, the
provisions of paragraph H of the COVERAGE ARTICLE as respects the Minnesota Workers’ Compensation Reinsurance Association shall apply. 

ARTICLE V 
 TERRITORY

 The territorial limits of this Contract shall be identical with those of the Company’s Policies. 

  
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 ARTICLE VI 

EXCLUSIONS 
  

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

  

	 	1.	Reinsurance assumed by the Company under obligatory reinsurance agreements, except: 

  

	 	a.	Agency reinsurance where the policies involved are to be reunderwritten in accordance with the underwriting standards of the Company and reissued as Company policies at the next anniversary or expiration date; and

  

	 	b.	Intercompany reinsurance between any of the reinsured companies under this Contract. 

  

	 	c.	Reinsurance assumed through Policies issued by Cooperative Mutual Insurance Company. 

  

	 	2.	Nuclear risks as defined in the “Nuclear Incident Exclusion Clause – Liability – Reinsurance – U.S.A.” (NMA 1590 21/9/67) attached hereto. 

 

	 	3.	Liability as a member, subscriber or reinsurer of any Pool, Syndicate or Association, including Assigned Risk Plans or similar plans; however, this exclusion shall not apply to liability under a Policy specifically
designated to the Company from an Assigned Risk Plan or similar plan. 

  

	 	4.	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. 

  

	 	5.	Loss caused directly or indirectly by war, whether or not declared, civil war, insurrection, rebellion or revolution, or any act or condition incidental to any of the foregoing. This exclusion shall not apply to any
Policy that contains a standard war exclusion. 

  

	 	6.	Workers’ Compensation where the principal exposure, as defined by the governing class code, is: 

  

	 	a.	Operation of aircraft, but only if the annual estimated policy premium is $250,000 or more; 

  

	 	b.	Operation of Railroads, subways or street railways; 

  

	 	c.	Manufacturing, assembly, packing or processing of fireworks, fuses, nitroglycerine, magnesium, pyroxylin, ammunition or explosives. This exclusion does not apply to the assembly, packing or processing of explosives when
the estimated annual premium is under $250,000 and does not apply to the commercial use of explosives; 

  

	 	d.	Underground mining. 

  

	 	7.	Professional sports teams. 

  
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	B.	Notwithstanding the foregoing, insureds regularly engaged in operations not excluded under paragraph A above, but whose operations may include one or more perils excluded therein, shall not be excluded from coverage
afforded by this Contract, provided said operations are incidental to the main operations of the insured. Notwithstanding the foregoing, coverage extended under this paragraph for incidental operations of an insured shall not apply to exposures
excluded under subparagraphs 1 through 5 of paragraph A above. The Company shall be the judge of what constitutes an incidental part of the insured’s operation. 

 

	C.	Except for subparagraphs 1 through 5 of paragraph A above, if the Company is inadvertently bound or is unknowingly exposed (due to error or automatic provisions of policy coverage) on a risk otherwise excluded in
paragraph A above, such exclusion shall be waived. The duration of said waiver will not extend beyond the time that notice of such coverage has been received by a responsible underwriting authority of the Company and for a period not
exceeding 30 days thereafter, or such longer period required to conform with any notice of cancellation provisions prescribed by regulatory authorities, such period not to exceed 12 months plus odd time (not exceeding 18 months). 

 

	D.	If the Company is required to accept an assigned risk which conflicts with one or more of the exclusions set forth in subparagraph 5 of paragraph A, reinsurance shall apply, but only for the difference between the
Company’s retention and the limit required by the applicable state statute, and in no event shall the Reinsurer’s liability exceed the limit set forth in the Coverage Article. 

 

	E.	Notwithstanding the foregoing, any reinsurance falling within the scope of one or more of the exclusions set forth above that is specially accepted by the Reinsurer from the Company shall be covered under this Contract
and be subject to the terms hereof. 

  

	F.	Except for subparagraphs 1 through 5 of paragraph A above, should an arbitration decision or any judicial or regulatory entity having competent jurisdiction invalidate any exclusion or expand coverage of the original
Policy of the Company, any amount of Loss for which the Company would not be liable, except for such invalidation or expansion of coverage, shall not be subject to any of the exclusions, conditions and limitations hereinafter set forth under this
Contract. 

  
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 ARTICLE VII 

TERRORISM ACT RECOVERIES 
  

	A.	Any financial assistance the Company receives under the Terrorism Act, shall apply as follows: 

  

	 	1.	Except as provided in subparagraph 2 below, any such financial assistance shall inure solely to the benefit of the Company and shall be entirely disregarded in applying all of the provisions of this Contract.

  

	 	2.	If losses occurring hereunder result in recoveries made by the Company both under this Contract and under the Terrorism Act, and such recoveries, together with any other reinsurance recoverables made by the Company
applicable to said losses, exceed the total amount of the Company’s insured losses, any amount in excess thereof shall reduce the Ultimate Net Loss subject to this Contract for the losses to which the Terrorism Act assistance applies. These
recoveries shall be returned in proportion to each Reinsurer’s paid share of the loss. 

  

	B.	Nothing herein shall be construed to mean that the losses under this Contract are not recoverable until the Company has received financial assistance under the Terrorism Act. 

ARTICLE VIII 
 COVERAGE

  

	A.	The Reinsurer shall be liable for the Ultimate Net Loss in excess of $10,000,000 as a result of any one Loss Occurrence. The Reinsurer’s liability in respect of any one Loss Occurrence shall not exceed $60,000,000.

  

	B.	The Reinsurer’s liability in respect of Ultimate Net Loss amounts recoverable hereunder for an Act of Terrorism (as defined in the definition of “Act of Terrorism”) occurring during the term of this
Contract shall not exceed $60,000,000. This paragraph is not subject the REINSTATEMENT ARTICLE. 

  

	C.	The Reinsurer’s liability in respect of all losses occurring during the term of this Contract shall not exceed $120,000,000. 

  

	D.	As respects the statutory portion of any Workers’ Compensation Policy, the Company’s Ultimate Net Loss subject to this Contract shall not exceed $10,000,000 as respects any one life, each Loss Occurrence

  

	E.	The Company shall be permitted to purchase (or maintain) other reinsurance which inures to the benefit of this Contract. 

  

	F.	The Company shall be permitted to carry underlying 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 Contract.

  

	G.	As respects Employers Liability, the maximum net subject Policy limit (except statutory where required by law) as respects any one Policy shall be $2,000,000 or the Company shall be deemed to have purchased inuring
excess facultative reinsurance for subject Policy limits in excess of $2,000,000. 

  

	H.	 The Company shall be permitted to carry excess of loss reinsurance applying to Workers’ Compensation risks in the State of Minnesota, actual
recoveries under which shall inure to 

  
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the benefit of this Contract. Such coverage shall be provided through the Minnesota Workers’ Compensation Reinsurance Association. Notwithstanding the treatment of inuring coverage in the
definition of Ultimate Net Loss, the liability of the Reinsurer for Minnesota Workers’ Compensation risks is not released. 

ARTICLE IX 
 REINSTATEMENT

  

	A.	Should all or any part of the Reinsurer’s limit of liability be exhausted as a result of a Loss Occurrence, the sum so exhausted shall be reinstated from the date the Loss Occurrence commenced. 

 

	B.	For each amount so reinstated, the Company agrees to pay an additional premium at the time of the Reinsurer’s payment of the loss calculated in accordance with the following formula: 

 

	 	1.	The percentage of the Reinsurer’s limit of liability exhausted for the Loss Occurrence; times 

  

	 	2.	The Net Earned Premium for the term of this Contract (exclusive of reinstatement premium). 

 The
dollar amount resulting from the multiplication of subparagraphs 1 and 2 above shall equal the reinstatement premium. If at the time of the Reinsurer’s payment of a loss hereon, the reinsurance premium as calculated under this Contract is
unknown, the calculation of the reinstatement premium shall be based upon the deposit premium subject to adjustment when the reinsurance premium is finally established. 
  

	C.	Nevertheless, the Reinsurer’s liability hereunder shall not exceed $60,000,000 in respect of any one Loss Occurrence, and shall be further limited to $120,000,000 in respect of all losses occurring during the term
of this Contract. 

 ARTICLE X 

SPECIAL ACCEPTANCE 
 From time to time the Company
may request a special acceptance applicable to this Contract. For purposes of this Contract, in the event each subscribing reinsurer whose share in the interests and liabilities of the Reinsurer is 20% or greater agree to a special acceptance, such
agreement shall be binding on all subscribing reinsurers. If such agreement is not achieved, such special acceptance shall be made to this Contract only with respect to the interests and liabilities of each subscribing reinsurer who agrees to the
special acceptance. Should denial for special acceptance not be received within 10 working days of said request, the special acceptance shall be deemed automatically agreed. In the event a reinsurer becomes a party to this Contract subsequent to one
or more special acceptances hereunder, the new reinsurer shall automatically accept such special acceptance(s) as being covered hereunder. 

  
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 ARTICLE XI 

ACCOUNTING BASIS 
 All premiums and losses under
this Contract shall be reported on an “accident year” accounting basis. Unless specified otherwise herein, all premiums shall be credited to the period during which they earn, and all losses shall be charged to the period during which they
occur. 
 ARTICLE XII 

REINSURANCE PREMIUM 
  

	A.	As premium for the reinsurance provided hereunder, the Company shall pay the Reinsurer 0.47% times its Net Earned Premium for the term of this Contract subject to a Minimum Premium of $1,440,000. 

 

	B.	The Company shall pay the Reinsurer a Deposit Premium of $1,800,000 payable in quarterly installments on January 1, April 1, July 1 and October 1. 

 

	C.	Within 90 days after the expiration of this Contract, the Company shall provide a report to the Reinsurer setting forth the premium due hereunder, computed in accordance with paragraph A, and if the premium so
computed is greater than the previously paid Deposit Premium, the balance shall be remitted by the Company with its report. 

  

	D.	If this Contract expires on a runoff basis, the Company shall pay to the Reinsurer a premium for the runoff period equal to the expiring rate times its Net Earned Premium for the runoff period. The runoff premium shall
be calculated and paid within 90 days after the end of each three-month period during the runoff period. There shall be no minimum premium requirement for the runoff period. 

ARTICLE XIII 
 NOTICE OF LOSS
AND LOSS SETTLEMENTS 
  

	A.	As soon as practicable, the Company shall advise the Reinsurer of all bodily injury claims or losses involving any of the following: 

 

	 	1.	Any claim or loss reserved at 50.0% or more of the Company’s retention under this Contract. 

  

	 	2.	Any claim involving any of the following injuries where the Company’s incurred loss is greater than or equal to $1,000,000: 

  

	 	a.	Fatality. 

  

	 	b.	Spinal cord injuries (e.g., quadriplegia, paraplegia). 

  

	 	c.	Brain damage (e.g., seizure, coma or physical/mental impairment). 

  
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	 	d.	Severe burn injuries resulting in disfigurement or scarring. 

  

	 	e.	Total or partial blindness in one or both eyes. 

  

	 	f.	Major organ (e.g., heart, lungs). 

  

	 	g.	Amputation of a limb or multiple fractures. 

  

	B.	The Company shall also advise the Reinsurer promptly of all losses which, in the opinion of the Company, may result in a claim hereunder and of all subsequent developments thereto which, in the opinion of the Company,
may materially affect the position of the Reinsurer. 

  

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

  

	D.	All loss settlements made by the Company that are within the terms and conditions of this Contract (including but not limited to ex gratia payments) shall be binding upon the Reinsurer. Upon receipt of satisfactory
proof of loss, the Reinsurer agrees to promptly pay or allow, as the case may be, its share of each such settlement in accordance with this Contract. 

ARTICLE XIV 
 LIABILITY OF
REINSURERS 
 All reinsurances for which the Reinsurer shall be liable by virtue of this Contract shall be subject in all respects to the same rates,
terms, conditions, interpretations and waivers and to the same modifications, alterations, and cancellations, as the respective policies to which such reinsurances relate, the true intent of the parties to this Contract being that the Reinsurer
shall follow the fortunes of the Company. 
 ARTICLE XV 

LATE PAYMENTS 
  

	A.	In the event any premium, loss or other payment due either party is not received by the Intermediary hereunder by the payment due date, the party to whom payment is due may, by notifying the Intermediary in writing,
require the debtor party to pay, and the debtor party agrees to pay, an interest penalty on the amount past due calculated for each such payment on the last business day of each month as follows: 

 

	 	1.	The number of full days which have expired since the due date or the last monthly calculation, whichever the lesser; times 

  
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	 	2.	1/365ths of a rate equal to the 90-day Treasury Bill rate as published in The Wall Street Journal on the first business day following the date a remittance becomes due; times 

 

	 	3.	The amount past due, including accrued interest. 

 It is agreed that interest shall accumulate
until payment of the original amount due plus interest penalties have been received by the Intermediary. 
  

	B.	The establishment of the due date shall, for purposes of this Article, be determined as follows: 

  

	 	1.	As respects the payment of deposits and premiums due the Reinsurer, the due date shall be as provided for in the applicable section of this Contract. 

 

	 	2.	Any claim or loss payment due the Company hereunder shall be deemed due 10 business days after the proof of loss or demand for payment is transmitted to the Reinsurer. If such loss or claim payment is not received
within the 10 days, interest will accrue on the payment or amount overdue in accordance with the interest penalty calculation above, from the date the proof of loss or demand for payment was transmitted to the Reinsurer. 

 

	 	3.	As respects any payment, adjustment or return due either party not otherwise provided for in subparagraphs 1 and 2 of this paragraph, the due date shall be as provided for in the applicable section of this Contract.

  

	C.	For purposes of interest calculation only, amounts due hereunder shall be deemed paid upon receipt by the Intermediary. The validity of any claim or payment may be contested under the provisions of this Contract. If the
debtor party prevails in an arbitration, or any other proceeding, there shall be no interest penalty due. Otherwise, any interest will be calculated and due as outlined above. 

 

	D.	Interest penalties arising out of the application of this Article that are $100 or less from any party shall be waived unless there is a pattern of late payments consisting of three or more items over the course of any
12-month period. 

 ARTICLE XVI 

ANNUITIES AT THE COMPANY’S OPTION 
  

	A.	Whenever the Company is required, or elects, to purchase an annuity or to negotiate a structured settlement, either in satisfaction of a judgment or in an out-of-court settlement or otherwise, the cost of the annuity or
the structured settlement, as the case may be, shall be deemed part of the Company’s Ultimate Net Loss. 

  

	B.	The terms “annuity” or “structured settlement” shall be understood to mean any insurance policy, lump sum payment, agreement or device of whatever nature resulting in the payment of a lump sum by the
Company in settlement of any or all future liabilities which may attach to it as a result of an occurrence. 

  

	C.	In the event the Company purchases an annuity which inures in whole or in part to the benefit of the Reinsurer, it is understood that the liability of the Reinsurer is not released thereby. In the event the Company is
required to provide benefits not provided by the annuity for whatever reason, the Reinsurer shall pay its share of any loss. 

  
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 ARTICLE XVII 

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

SUBROGATION 
 The Reinsurer shall be credited with
subrogation recoveries (i.e., reimbursement obtained or recovery made by the Company, less Loss Adjustment Expense incurred in obtaining such reimbursement or making such recovery) on account of claims and settlements involving reinsurance
hereunder. Subrogation recoveries 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, at its sole option and discretion, may enforce its rights to subrogation relating to any loss, a part of which loss was sustained by the Reinsurer, and may prosecute all claims arising out of such rights. 

ARTICLE XIX 
 ERRORS AND
OMISSIONS 
 Any inadvertent delay, omission or error shall not be held to relieve either party hereto from any liability which would attach to it
hereunder if such delay, omission or error had not been made, provided such omission or error is rectified upon discovery. Nothing contained in this Article shall be held to override the specific loss reporting deadline of the SUNSET AND COMMUTATION
ARTICLE. 
 ARTICLE XX 

OFFSET 
 The Company and the Reinsurer may offset
any balance or amount due from one party to the other under this Contract or any other contract heretofore or hereafter entered into between the Company and the Reinsurer, whether acting as assuming reinsurer or ceding company. The party asserting
the right of offset may exercise such right any time whether the balances due are on account of premiums or losses or otherwise. 

  
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 ARTICLE XXI 

CURRENCY 
  

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

 In consideration of the terms under which this Contract 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, the District of Columbia or Canada. 

ARTICLE XXIII 
 FEDERAL
EXCISE TAX 
 (Applicable to those subscribing reinsurers who are domiciled outside the United States of America, excepting subscribing reinsurers
exempt from Federal Excise Tax.) 
  

	A.	The subscribing 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 subscribing 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 XXIV 

FOREIGN ACCOUNT TAX COMPLIANCE ACT (“FATCA”) 
  

	A.	The Reinsurer hereby acknowledges the requirements of Sections 1471-1474 U.S. Internal Revenue Code of 1986, as amended, and the Treasury regulations and other guidance issued from time to time thereunder
(“FATCA”) and the obligation to provide to the Company and the intermediary. a valid Internal Revenue Service (“IRS”) Form W8-BEN-E, W-9 or other documentation meeting the requirements of the FATCA regulations to establish they
are not subject to any withholding requirement pursuant to FATCA (the “Required Documentation”). 

  
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	B	The Reinsurer shall notify the Company and the intermediary in writing (by electronic mail, certified mail or overnight mail using a nationally recognized overnight delivery service) in the event the Reinsurer is not
compliant with FATCA. If the Reinsurer has not provided the Company and the intermediary with the Required Documentation thirty (30) days prior to any premium due date, or becomes non-compliant with FATCA at any later date, the Withholding
Agent [as defined in U.S. Treasury Regulation Section 1.1471-1(b)(147)] shall withhold thirty percent (30%) of any premium payment to the Reinsurer under this Contract and shall promptly notify the Reinsurer of such withholding
(“Withholding”). The Reinsurer hereby agrees to such Withholding. 

  

	C.	In the event the Reinsurer is subject to Withholding as set forth under FATCA, the Reinsurer continues to remain fully liable for all of its obligations under this Contract. The Withholding under paragraph B above does
not constitute a breach of contract, any premium payment condition, warranty or other clause of this Contract. Reinsurer(s) subject to Withholding may not terminate, cancel, revoke or restrict this Contract, may not terminate, cancel, revoke or
restrict coverage under this Contract in any manner and may not deny, refuse, restrict or delay payment of any claim under this Contract or invoke any interest, penalty or other late payment provision hereunder, based on the Withholding.
Reinsurer(s) subject to Withholding shall be liable under this Contract as if no Withholding had been made. 

  

	D.	Amounts deducted or withheld as Withholding are not subject to offset. Offset rights, if any, under this Contract are hereby amended in accordance with the terms of this Article. 

 

	E.	The Reinsurer shall indemnify the Company and its agents for any and all liability, expense, interest or penalty the Company and its agents incur, based upon, arising from or in connection with (i) any inaccurate
or invalid Required Documentation; or (ii) any violation by the Reinsurer of FATCA. Such indemnity shall survive the expiration or termination of this Contract. 

ARTICLE XXV 
 RESERVES AND
FUNDING 
  

	A.	A subscribing reinsurer will provide funding under the terms of this Article only if the Company will be denied statutory credit for reinsurance ceded to that subscribing reinsurer pursuant to the credit for reinsurance
law or regulations in any applicable jurisdiction. In the event any of the provisions of this Article conflict with or otherwise fail to satisfy the requirements of the appropriate credit for reinsurance statute or regulation, this Article will be
deemed amended to conform to the appropriate statute or regulation; the intent of this Article being that the Company will be permitted to realize full credit for the reinsurance ceded to the Reinsurer under this Contract. 

 

	B.	 As regards Policies or bonds issued by the Company coming within the scope of this Contract, the Company agrees that when it shall file with the
insurance regulatory authority 

  
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or set up on its books reserves for losses covered hereunder which it shall be required by law to set up, it will forward to the subscribing reinsurer a statement showing the proportion of such
reserves which is applicable to the subscribing reinsurer. The subscribing reinsurer hereby agrees to fund such reserves in respect of known outstanding losses that have been reported to the subscribing reinsurer and allocated Loss Adjustment
Expense relating thereto, losses and allocated Loss Adjustment Expense paid by the Company but not recovered from the subscribing reinsurer, plus reserves for losses incurred but not reported, as shown in the statement prepared by the Company
(hereinafter referred to as “subscribing reinsurer’s obligations”) by funds withheld, cash advances or a Letter of Credit. The subscribing reinsurer shall have the option of determining the method of funding provided it is acceptable
to the Company and to the insurance regulatory authorities having jurisdiction over the Company’s reserves. 

  

	C.	When funding by a Letter of Credit, the subscribing reinsurer agrees to apply for and secure timely delivery to the Company of a clean, irrevocable and unconditional Letter of Credit issued by a bank and containing
provisions acceptable to the insurance regulatory authorities having jurisdiction over the Company’s reserves in an amount equal to the subscribing reinsurer’s proportion of said reserves. Such Letter of Credit shall be issued for a period
of not less than one year, and shall be automatically extended for one year from its date of expiration or any future expiration date unless 30 days (60 days where required by insurance regulatory authorities) prior to any expiration date
the issuing bank shall notify the Company by certified or registered mail that the issuing bank elects not to consider the Letter of Credit extended for any additional period. 

 

	D.	The subscribing reinsurer and Company agree that the Letters of Credit provided by the subscribing reinsurer pursuant to the provisions of this Contract may be drawn upon at any time, notwithstanding any other provision
of this Contract, and be utilized by the Company or any successor, by operation of law, of the Company including, without limitation, any liquidator, rehabilitator, receiver or conservator of the Company for the following purposes, unless otherwise
provided for in a separate Trust Agreement: 

  

	 	1.	To reimburse the Company for the subscribing reinsurer’s obligations, the payment of which is due under the terms of this Contract and which has not been otherwise paid; 

 

	 	2.	To make refund of any sum which is in excess of the actual amount required to pay the subscribing reinsurer’s obligations under this Contract; 

 

	 	3.	To fund an account with the Company for the subscribing reinsurer’s obligations. Such cash deposit shall be held in an interest bearing account separate from the Company’s other assets, and interest thereon
not in excess of the prime rate shall accrue to the benefit of the subscribing reinsurer; 

  

	 	4.	To pay the subscribing reinsurer’s share of any other amounts the Company claims are due under this Contract. 

In the event the amount drawn by the Company on any Letter of Credit is in excess of the actual amount required for subparagraph 1 or 3,
or in the case of subparagraph 4, the actual amount determined to be due, the Company shall promptly return to the subscribing reinsurer the excess amount so drawn. All of the foregoing shall be applied without diminution because of insolvency
on the part of the Company or the subscribing reinsurer. 

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

  

	F.	At annual intervals, or more frequently as agreed but never more frequently than quarterly, the Company shall prepare a specific statement of the subscribing reinsurer’s obligations, for the sole purpose of
amending the Letter of Credit, in the following manner: 

  

	 	1.	If the statement shows that the subscribing reinsurer’s obligations exceed the balance of credit as of the statement date, the subscribing reinsurer shall, within 30 days after receipt of notice of such
excess, secure delivery to the Company of an amendment to the Letter of Credit increasing the amount of credit by the amount of such difference. 

  

	 	2.	If, however, the statement shows that the subscribing reinsurer’s obligations are less than the balance of credit as of the statement date, the Company shall, within 30 days after receipt of written request
from the subscribing reinsurer, release such excess credit by agreeing to secure an amendment to the Letter of Credit reducing the amount of credit available by the amount of such excess credit. 

 

	G.	Should the subscribing reinsurer be in breach of its obligations under this Article, notwithstanding anything to the contrary elsewhere in this Contract, the Company may seek relief in respect of said breach from any
court having competent jurisdiction of the parties hereto. 

 ARTICLE XXVI 

NET RETAINED LINES 
  

	A.	This Contract 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 Contract), and in calculating
the amount of any loss hereunder and also in computing the amount or amounts in excess of which this Contract 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. 

  
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 ARTICLE XXVII 

THIRD PARTY RIGHTS 
 This Contract is solely
between the Company and the Reinsurer, and in no instance shall any other party have any rights under this Contract except as expressly provided otherwise in the INSOLVENCY ARTICLE. 

ARTICLE XXVIII 
 SEVERABILITY

 If any provision of this Contract shall be rendered illegal or unenforceable by the laws or regulations 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 Contract or the enforceability of such provision in any other jurisdiction. 

ARTICLE XXIX 
 GOVERNING LAW

 This Contract shall be governed as to performance, administration and interpretation by the laws of the State of Nebraska, exclusive of that
state’s rules with respect to conflicts of law, except as to rules with respect to credit for reinsurance in which case the applicable rules of all states shall apply. 

ARTICLE XXX 
 INSPECTION OF
RECORDS 
  

	A.	The Reinsurer or its designated representative(s) approved by the Company, upon providing reasonable advance notice to the Company, shall have access at the offices of the Company or at a location to be mutually agreed,
at a time to be mutually agreed, to inspect the Company’s underwriting, accounting, or claim files pertaining to the subject matter of this Contract, other than proprietary information or privileged communications. The Company shall determine
the manner in which files shall be accessed by the Reinsurer. The Reinsurer may, at its own expense, reasonably request copies of such files and agrees to pay the Company’s reasonable costs incurred in procuring such copies. 

 

	B.	If any undisputed amounts are overdue from the Reinsurer to the Company, the Reinsurer shall have access to such records only upon payment of all such overdue amounts. 

 

	C.	If the Reinsurer makes any inspection of the Company’s books and records involving specific claims under this Contract and, as a result of the inspection the claim is contested or disputed, the Reinsurer shall
provide the Company, at the Company’s request, a summary of any reports, other than proprietary information or privileged communications, completed by the Reinsurer’s personnel or by third parties on behalf of the Reinsurer outlining the
reasons for contesting or disputing the subject claim. 

  
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 ARTICLE XXXI 

CONFIDENTIALITY 
  

	A.	The Reinsurer hereby acknowledges that the documents, information, and data provided to the Reinsurer by the Company, whether directly or through an authorized agent, in connection with the placement and execution of
this Contract (“Confidential Information”) are proprietary and confidential to the Company. 

  

	B.	Absent the written consent of the Company, the Reinsurer will not disclose any Confidential Information to any third parties, except when: 

 

	 	1.	The disclosure is to professional advisors or to authorized agents of the Reinsurer performing underwriting, claim handling, pricing, placement and/or evaluation services for the Reinsurer; or 

 

	 	2.	The Confidential Information is publicly known or has become publicly known through no unauthorized act of the Reinsurer; or 

  

	 	3.	Required by retrocessionaires subject to the business ceded to this Contract; or 

  

	 	4.	Required by state regulators performing an audit of the Reinsurer’s records and/or financial condition; or 

  

	 	5.	Required by auditors performing an audit of the Reinsurer’s records in the normal course of business. 

  

	C.	Further, the Reinsurer agrees not to use any Confidential Information for any purpose not permitted by this Contract or not related to the performance of their obligations or enforcement of their rights under this
Contract. 

  

	D.	Notwithstanding the above, in the event that the Reinsurer is required by court order, other legal process, or any regulatory authority to release or disclose any or all of the Confidential Information, the Reinsurer
agrees to provide the Company by written or electronic mail, reasonable advance notice of same prior to such release or disclosure and to use their reasonable best efforts to assist the Company in maintaining the confidentiality provided for in this
Article. 

  

	E.	The provisions of this Article will extend to the officers, directors, shareholders, and employees of the Reinsurer and its affiliates, who have received Confidential Information in accordance with this Contract and
will be binding upon their successors and assigns. 

  
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 ARTICLE XXXII 

SUNSET AND COMMUTATION 
  

	A.	Ten years after the expiration of this Contract, the Company shall advise the Reinsurer of any Loss Occurrences attaching to this Contract which have not been finally settled and which may result in a claim by the
Company under this Contract. No liability shall attach hereunder for any claim or claims not reported to the Reinsurer within this ten year period. If a loss arising out of a Loss Occurrence is reported during this period, all losses arising out of
the same Loss Occurrence shall be deemed reported under this paragraph regardless of when notification of loss is provided. 

  

	B.	If both parties agree to commute the unsettled losses subject to the Contract, then the Reinsurer’s liability for all such unsettled losses shall then be commuted. 

 

	C.	It is understood that commutation of all such losses shall be made using tabular reserving methods. For each loss, the nominal ultimate value of the Company’s Ultimate Net Loss shall be established by projecting
out future medical and indemnity payments and loss expenses by year based on appropriate trends and escalations applied to annual cost estimates. The Contract limit and retention (where applicable) shall then be applied to the nominal ultimate value
of the Company’s Ultimate Net Loss to determine the nominal ultimate Contract loss. Mortality factors and discount factors shall then be applied by year to the nominal ultimate Contract loss. The discounted, mortality adjusted projected annual
loss payments shall be summed to determine the present value (“commutation price”) of the ultimate Contract loss. The medical escalation, discount and mortality factors are described in paragraph C. 

 

	D.	The following factors shall be utilized in establishing the commutation price: 

  

	 	1.	Medical Escalation Rate 

 The medical escalation rate shall be a reasonable estimate of future
medical inflation. 
  

	 	2.	Discount Rate 

 The discount rate shall be the annualized 10-year US Treasury Bill rate at the
Valuation Date. 
  

	 	3.	Mortality Tables 

 Mortality factors shall be based on the most recent mortality table at the
Valuation Date from the “Vital Statistics of the United States” as published by the US Department of Health and Human Services, Center for Disease Control and Prevention. Factors for extension beyond age 85 shall also be included. 

 

	 	4.	Impairment 

 Impairment factors shall be based on the individual claim characteristics. 

  
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 Any other method of calculating the commutation price of one or more losses subject to this
Contract may be used as mutually agreed between the Company and the Reinsurer. 
  

	E.	If the Company and the Reinsurer cannot agree on a commutation value, the effort can be abandoned. Alternatively, the Company and the Reinsurer may mutually agree to settle any difference using a panel of three
actuaries, one to be chosen by each party and the third by the two so chosen. If either party refuses or neglects to appoint an actuary within 30 days, the other party may appoint two actuaries. If the two actuaries fail to agree on the
selection of a third actuary within 30 days of their appointment, each of them shall name two, of whom the other shall decline one and the decision shall be made by drawing lots. All the actuaries shall be regularly engaged in the valuation of
Workers’ Compensation claims and shall be Fellows of the Casualty Actuarial Society or members of the American Academy of Actuaries. All of the actuaries shall be independent of either party to this Contract. 

 

	F.	The settlement agreed upon by a majority of the panel of actuaries shall be final and binding on both parties and set forth in a sworn written document expressing their professional opinion that said value is fair for
the complete mutual release of all liabilities in respect of such reserves. 

  

	G.	The Reinsurer’s commutation payment shall be due within 7 days following the date the Company and the Reinsurer agree to the commutation price. Such payment by the Reinsurer shall constitute both a complete release
of the Reinsurer of its liability for all losses, known or unknown, under this Contract, and a complete release of the Company of its liabilities and obligations, known or unknown, under this Contract. 

 

	H.	This Article shall survive the expiration of this Contract. 

 ARTICLE XXXIII 

INSOLVENCY 
  

	A.	In the event of the insolvency of the Company, this reinsurance shall be payable directly to the Company or to its liquidator, receiver, conservator or statutory successor, with reasonable provision for verification, 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 proportionate share of the benefit which may accrue to the
Company solely as a result of the defense undertaken by the Reinsurer. 

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

  

	C.	It is further agreed that, in the event of the insolvency of the Company, the reinsurance under this Contract shall be payable directly by the Reinsurer to the Company or its liquidator, receiver, conservator, or
statutory successor, except as provided by Section 4118(a) of the New York Insurance Law or except 1) where this Contract 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 payee under such Policies and in substitution for the obligations of the
Company to such payees. 

  

	D.	In the event of the insolvency of any company or companies listed in the designation of “Company” under this Contract, this Article shall apply only to the insolvent company or companies. 

ARTICLE XXXIV 
 ARBITRATION

  

	A.	As a condition precedent to any right of action hereunder, any irreconcilable dispute arising out of the interpretation, performance or breach of this Contract, including the formation or validity thereof, whether
arising before or after the expiry or termination of the Contract, shall be submitted for decision to a panel of three arbitrators. Notice requesting arbitration will be in writing and sent by certified mail, return receipt requested, or such
reputable courier service as is capable of returning proof of receipt of such notice by the recipient to the party demanding arbitration. 

  

	B.	The Company shall have the option to either litigate or arbitrate where: 

  

	 	1.	The Reinsurer makes any allegation of misrepresentation, non-disclosure, concealment, fraud or bad faith; or 

  

	 	2.	The Reinsurer experiences any of the circumstances set forth in subparagraphs 1 through 7 of paragraph A of the SPECIAL TERMINATION ARTICLE. 

 

	C.	One arbitrator shall be appointed by each party. If either party fails to appoint its arbitrator within 30 days after being requested to do so by the other party, the latter, after 10 days notice by certified
mail or reputable courier as provided above of its intention to do so, may appoint the second arbitrator. 

  

	D.	 The two arbitrators shall, before instituting the hearing, appoint an impartial third arbitrator who shall preside at the hearing. Should the two
arbitrators fail to choose the third 

  
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arbitrator within 30 days of the appointment of the second arbitrator, the parties shall appoint the third arbitrator pursuant to the AIDA Reinsurance and Insurance Arbitration Society –
U.S. (ARIAS) Umpire Selection Procedure. All arbitrators shall be disinterested active or former senior executives of insurance or reinsurance companies or Underwriters at Lloyd’s, London. 

 

	E.	Within 30 days after notice of appointment of all arbitrators, the panel shall meet and determine timely periods for briefs, discovery procedures and schedules for hearings. The panel shall be relieved of all
judicial formality and shall not be bound by the strict rules of procedure and evidence. Unless the panel agrees otherwise, arbitration shall take place in Omaha, Nebraska but the venue may be changed when deemed by the panel to be in the best
interest of the arbitration proceeding. Insofar as the arbitration panel looks to substantive law, it shall consider the law of the State of Nebraska. The decision of any two arbitrators when rendered in writing shall be final and binding. The panel
is empowered to grant interim relief as it may deem appropriate. 

  

	F.	In the event an arbitrator is unable to serve due to death, disability or other incapacity, a replacement arbitrator shall be chosen in accordance with the procedures set forth in this Article for the original selection
of the arbitrator appointed and the newly constituted panel shall take all necessary and/or reasonable measures to continue the arbitration proceedings without additional delay. 

 

	G.	The panel shall make its decision considering the custom and practice of the applicable insurance and reinsurance business as promptly as possible following the termination of the hearings. Judgment upon the award may
be entered in any court having jurisdiction thereof. 

  

	H.	If more than one subscribing reinsurer is involved in arbitration where there are common questions of law or fact and a possibility of conflicting awards or inconsistent results, all such subscribing 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 subscribing reinsurers constituting the one party; provided, however, that nothing therein shall impair the rights of such
subscribing reinsurers to assert several, rather than joint defenses or claims, nor be construed as changing the liability of the subscribing reinsurers under the terms of this Contract from several to joint. 

 

	I.	Each party shall bear the expense of its own arbitrator and shall jointly and equally bear with the other party the cost of the third arbitrator. The remaining costs of the arbitration shall be allocated by the panel.
The panel may, at its discretion, award such further costs and expenses as it considers appropriate, including but not limited to attorneys fees, to the extent permitted by law. However, the panel may not award any Exemplary or Punitive Damages and
Enhanced Compensatory Damages. 

  
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 ARTICLE XXXV 

EXPEDITED ARBITRATION 
  

	A.	Notwithstanding the provisions of the ARBITRATION ARTICLE, in the event an amount in dispute hereunder is $500,000 or less, the Company may elect to require an expedited arbitration process with the use of a single
arbitrator. The arbitrator will be chosen in accordance with the procedures for selecting an arbitrator in force on the date the arbitration is demanded, established by the AIDA Reinsurance and Insurance Arbitration Society – U.S. (ARIAS).

  

	B.	Each party’s case will be submitted to the arbitrator within 100 days of the date of determination of the arbitrator. Discovery will be limited to exchanging only those documents directly relating to the issue in
dispute, subject to a limit of two discovery depositions from each party, unless otherwise authorized by the arbitrator upon a showing of good cause. 

  

	C.	Within 120 days of the date of determination of the arbitrator, the hearing will be completed and a written award will be issued by the arbitrator. The arbitrator will have all the powers conferred on the arbitration
panel as provided in the ARBITRATION ARTICLE, and said Article will apply to all matters not specifically addressed above. 

ARTICLE XXXVI 
 SERVICE OF
SUIT 
 (This Article is 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. This Article is not intended to conflict with or override the obligation of the parties to arbitrate their disputes in accordance
with the ARBITRATION ARTICLE.) 
  

	A.	In the event of the failure of the Reinsurer to perform its obligations under this Contract, the Reinsurer, at the request of the Company, shall 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 selected, whether such court is the one
originally chosen by the Company and accepted by the Reinsurer or is determined by removal, transfer, or otherwise, as provided for above, shall comply with all requirements necessary to give said court jurisdiction and, in any suit instituted
against it upon this Contract, and shall abide by the final decision of such court or of any appellate court in the event of an appeal. The validity and/or enforceability of any arbitration award or judgment obtained in the United States shall
not be contested by the Reinsurer in any jurisdiction outside of the United States. 

  
 25 

Table of Contents

	B.	Service of process in such suit may be made upon the law firm of Mendes and Mount, 750 Seventh Avenue, New York, NY 10019, or another party specifically designated by the Reinsurer in its Interests and Liabilities
Agreement attached hereto.

  

	C.	Further, pursuant to any statute of any state, territory or district of the United States that makes provision therefor, the Reinsurer hereby designates the Superintendent, Commissioner or Director of Insurance, or
other officer specified for that purpose in the statute, or his/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 proceedings instituted by or on behalf of the
Company or any beneficiary hereunder arising out of this Contract, and hereby designates the above-named as the person to whom the said officer is authorized to mail such process or a true copy thereof. 

 

	D.	The individual named in Paragraph C shall be deemed the Reinsurer’s agent for the service of process: 

  

	 	1.	where the address designated in, or pursuant to paragraph B is invalid; or 

  

	 	2.	to the extent necessary to bring this Contract into conformity with the applicable law of a state with jurisdiction over the Company. 

ARTICLE XXXVII 
 ENTIRE
AGREEMENT 
 This Contract shall constitute the entire agreement between the parties with respect to the business being reinsured hereunder. There
are no understandings between the parties other than as expressed in this Contract. Any change or modification to this Contract shall be null and void unless made by amendment to this Contract and signed by both parties. This Article shall not be
construed as limiting in any way the admissibility in the context of an arbitration or any other legal proceeding, evidence regarding the formation, interpretation, purpose or intent of this Contract. 

ARTICLE XXXVIII 
 MODE OF
EXECUTION 
 This Contract may be executed either by an original written ink signature of paper documents, by an exchange of facsimile copies showing
the original written ink signature of paper documents, or by electronic signature by either party employing appropriate software technology as to satisfy the parties at the time of execution that the version of the document agreed to by each party
shall always be capable of authentication and satisfy the same rules of evidence as written signatures. The use of any one or a combination of these methods of execution shall constitute a legally binding and valid signing of this Contract. This
Contract may be executed in one or more counterparts, each of which, when duly executed, shall be deemed an original. 

  
 26 

Table of Contents

 ARTICLE XXXIX 

INTERMEDIARY 
 Willis Re Inc. is hereby recognized
as the intermediary negotiating this Contract and through whom all communications, including but not limited to accounts, claim information, funds and inquiries, to the Company or the Reinsurer shall be transmitted. Payments by the Company to Willis
Re Inc. shall be deemed to constitute payment to the Reinsurer and payments by the Reinsurer to Willis Re Inc. 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 Contract as of the date specified below: 

Signed this 2nd day of January, 2015. 
 AMERICAN INTERSTATE
INSURANCE COMPANY 
 SILVER OAK CASUALTY, INC. 

AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS 
  

			
	By		 /s/ G. Janelle Frost

		
	Printed Name		 G. Janelle Frost

		
	Title		 President and Chief Operating Officer

  
 27 

Table of Contents

 NUCLEAR INCIDENT EXCLUSION CLAUSE - LIABILITY - REINSURANCE - U.S.A. 

(1) This reinsurance does not cover any loss or liability accruing to the Reassured as a member of, or subscriber to, any association of insurers or
reinsurers formed for the purpose of covering nuclear energy risks or as a direct or indirect reinsurer of any such member, subscriber or association. 

(2) Without in any way restricting the operation of paragraph (1) of this Clause it is understood and agreed that for all purposes of this reinsurance
all the original policies of the Reassured (new, renewal and replacement) of the classes specified in Clause II of this paragraph (2) from the time specified in Clause III in this paragraph (2) shall be deemed to include the following
provision (specified as the Limited Exclusion Provision): 
 Limited Exclusion Provision.* 

 

	I.	It is agreed that the policy does not apply under any liability coverage, 

 to
        (injury, sickness, disease, death or destruction, 

            (bodily injury or property damage 

with respect to which an insured under the policy is also an insured under a nuclear energy liability policy issued by Nuclear Energy Liability
Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability. 

 

	II.	Family Automobile Policies (liability only), Special Automobile Policies (private passenger automobiles, liability only), Farmers Comprehensive Personal Liability Policies (liability only), Comprehensive Personal
Liability Policies (liability only) or policies of a similar nature; and the liability portion of combination forms related to the four classes of policies stated above, such as the Comprehensive Dwelling Policy and the applicable types of
Homeowners Policies. 

  

	III.	The inception dates and thereafter of all original policies as described in II above, whether new, renewal or replacement, being policies which either 

(a) become effective on or after 1st May, 1960, or 

(b) become effective before that date and contain the Limited Exclusion Provision set out above; provided this paragraph
(2) shall not be applicable to Family Automobile Policies, Special Automobile Policies, or policies or combination policies of a similar nature, issued by the Reassured on New York risks, until 90 days following approval of the Limited
Exclusion Provision by the Governmental Authority having jurisdiction thereof. 
 (3) Except for those classes of policies specified in Clause II of
paragraph (2) and without in any way restricting the operation of paragraph (1) of this Clause, it is understood and agreed that for all purposes of this reinsurance the original liability policies of the Reassured (new, renewal and
replacement) affording the following coverages: 
 Owners, Landlords and Tenants Liability, Contractual Liability, Elevator Liability, Owners
or Contractors (including railroad) Protective Liability, Manufacturers and Contractors Liability, Product Liability, Professional and Malpractice Liability, Storekeepers Liability, Garage Liability, Automobile Liability (including Massachusetts
Motor Vehicle or Garage Liability) 
 shall be deemed to include, with respect to such coverages, from the time specified in Clause V of this paragraph (3),
the following provision (specified as the Broad Exclusion Provision): 
 Broad Exclusion Provision.* 

It is agreed that the policy does not apply: 
  

	I.	Under any Liability Coverage, to (injury, sickness, disease, death or destruction  

                        
                                  (bodily injury or property damage 

(a) with respect to which an insured under the policy is also an insured under a nuclear energy liability policy issued by Nuclear Energy
Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability; or 

(b) resulting from the hazardous properties of nuclear material and with respect to which (1) any person or organization is required to
maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, or (2) the insured is, or had this policy not been issued would be, entitled to indemnity from the United States of America, or any agency
thereof, under any agreement entered into by the United States of America, or any agency thereof, with any person or organization. 
 

 

	II.	Under any Medical Payments Coverage, or under any Supplementary Payments Provision 

 relating to
        (immediate medical or surgical relief,  

                 (first aid, 

     to expenses incurred with respect 

     to         (bodily injury, sickness, disease or death  

                 (bodily injury 

resulting from the hazardous properties of nuclear material and arising out of the operation of a nuclear facility by any person or
organization. 
  

	III.	Under any Liability Coverage to (injury, sickness, disease, death or destruction  

                        
                                  (bodily injury or property damage 

resulting from the hazardous properties of nuclear material, if 

(a) the nuclear material (1) is at any nuclear facility owned by, or operated by or on behalf of, an insured or (2) has been
discharged or dispersed therefrom; 
 (b) the nuclear material is contained in spent fuel or waste at any time possessed, handled, used,
processed, stored, transported or disposed of by or on behalf of an insured; or 

  
 1 

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 (c)            the
        (injury, sickness, disease, death or destruction  

           (bodily injury or property damages 

arises out of the furnishing by an insured of services, materials, parts or equipment in connection with the planning, construction, maintenance, operation or
use of any nuclear facility, but if such facility is located within the United States of America, its territories, or possessions or Canada, this exclusion (c) applies only to 

           (injury to or destruction of property at such nuclear facility 

           (property damage to such nuclear facility and any property thereat. 

 

	IV.	As used in this endorsement: 

 “Hazardous properties” include radioactive,
toxic or explosive properties; “nuclear material” means source material, special nuclear material or byproduct material; “source material,” “special nuclear material,” and “byproduct
material” have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof; “spent fuel” means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation
in a nuclear reactor; “waste” means any waste material (1) containing byproduct material and (2) resulting from the operation by any person or organization of any nuclear facility included within the definition of nuclear
facility under paragraph (a) or (b) thereof; “nuclear facility” means 
 (a) any nuclear reactor, 

(b) any equipment or device designed or used for (1) separating the isotopes of uranium or plutonium, (2) processing or utilizing
spent fuel, or (3) handling, processing or packaging waste, 
 (c) any equipment or device used for the processing, fabricating or
alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or
any combination thereof, or more than 250 grams of uranium 235, 
 (d) any structure, basin, excavation, premises or place prepared or used
for the storage or disposal of waste, 
 and includes the site on which any of the foregoing is located, all operations conducted on such
site and all premises used for such operations; “nuclear reactor” means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable material; 

           (With respect to injury to or destruction of property, the word
“injury” or “destruction” 
            (“property
damage” includes all forms of radioactive contamination of property 

           (includes all forms of radioactive contamination of property. 

 

	V.	The inception dates and thereafter of all original policies affording coverages specified in this paragraph (3), whether new, renewal or replacement, being policies which become effective on or after 1st May, 1960,
provided this paragraph (3) shall not be applicable to 

 (i) Garage and Automobile Policies issued by the Reassured on
New York risks, or 
 (ii) statutory liability insurance required under Chapter 90, General Laws of Massachusetts, 

until 90 days following approval of the Broad Exclusion Provision by the Governmental Authority having jurisdiction thereof. 

(4) Without in any way restricting the operation of paragraph (1) of this Clause, it is understood and agreed that paragraphs (2) and (3) above
are not applicable to original liability policies of the Reassured in Canada and that with respect to such policies this Clause shall be deemed to include the Nuclear Energy Liability Exclusion Provisions adopted by the Canadian Underwriters’
Association of the Independent Insurance Conference of Canada. 
  

	*	NOTE: The words printed in italics in the Limited Exclusion Provision and in the Broad Exclusion Provision shall apply only in relation to original liability policies which include a Limited Exclusion Provision or a
Broad Exclusion Provision containing those words. 

 21/9/67 

N.M.A. 1590 
 BRMA 35A 

  
 2 

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 INTERESTS AND LIABILITIES AGREEMENT 

(the “Agreement”) 
 of

 ALTERRA REINSURANCE USA INC 

(the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
CATASTROPHE EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

SILVER OAK CASUALTY, INC. 

both of Omaha, Nebraska 

and 
 AMERICAN INTERSTATE
INSURANCE COMPANY OF TEXAS 
 Austin, Texas 

and 
 any other insurance
companies which are now or hereafter come under the ownership, 
 control or management of Amerisafe, Inc. 

(collectively the “Company”) 
 The
Subscribing Reinsurer shall have a 10.00% share in the interests and liabilities of the “Reinsurer” as set forth in the Contract attached hereto and executed by the Company. 

This Agreement shall commence at 12:01 a.m., Standard Time, January 1, 2015 and shall continue in force until 12:01 a.m., Standard Time, January 1,
2016. 
 The share of the Subscribing Reinsurer in the interests and liabilities of the “Reinsurer” shall be several and not joint with the share
of any other subscribing reinsurer. In no event shall the Subscribing Reinsurer participate in the interests and liabilities of the other subscribing reinsurers. 

IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized representative has executed this Agreement as of the date specified below:

 Signed this 13th day of January, 2015. 

 

			
	ALTERRA REINSURANCE USA INC
		
	By		 /s/ William Pentony

		
	Print Name		 William Pentony

		
	Title		 SVP

Table of Contents

 INTERESTS AND LIABILITIES AGREEMENT 

(the “Agreement”) 
 of

 ARCH REINSURANCE COMPANY 

(the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
CATASTROPHE EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

SILVER OAK CASUALTY, INC. 

both of Omaha, Nebraska 

and 
 AMERICAN INTERSTATE
INSURANCE COMPANY OF TEXAS 
 Austin, Texas 

and 
 any other insurance
companies which are now or hereafter come under the ownership, 
 control or management of Amerisafe, Inc. 

(collectively the “Company”) 
 The
Subscribing Reinsurer shall have a 7.50% share in the interests and liabilities of the “Reinsurer” as set forth in the Contract attached hereto and executed by the Company. 

This Agreement shall commence at 12:01 a.m., Standard Time, January 1, 2015 and shall continue in force until 12:01 a.m., Standard Time, January 1,
2016. 
 The share of the Subscribing Reinsurer in the interests and liabilities of the “Reinsurer” shall be several and not joint with the share
of any other subscribing reinsurer. In no event shall the Subscribing Reinsurer participate in the interests and liabilities of the other subscribing reinsurers. 

IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized representative has executed this Agreement as of the date specified below:

 Signed this 30th day of December, 2014. 

 

			
	ARCH REINSURANCE COMPANY
		
	By		 /s/ PEDER F. MOLLER

		
	Print Name		 PEDER F. MOLLER

		
	Title		 MAN. DIR.

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 INTERESTS AND LIABILITIES AGREEMENT 

(the “Agreement”) 
 of

 BRIT SYNDICATE 2987 AT LLOYD’S 

(the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
CATASTROPHE EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

SILVER OAK CASUALTY, INC. 

both of Omaha, Nebraska 

and 
 AMERICAN INTERSTATE
INSURANCE COMPANY OF TEXAS 
 Austin, Texas 

and 
 any other insurance
companies which are now or hereafter come under the ownership, 
 control or management of Amerisafe, Inc. 

(collectively the “Company”) 
 The
Subscribing Reinsurer shall have a 10.00% share in the interests and liabilities of the “Reinsurer” as set forth in the Contract attached hereto and executed by the Company. 

This Agreement shall commence at 12:01 a.m., Standard Time, January 1, 2015 and shall continue in force until 12:01 a.m., Standard Time, January 1,
2016. 
 The share of the Subscribing Reinsurer in the interests and liabilities of the “Reinsurer” shall be several and not joint with the share
of any other subscribing reinsurer. In no event shall the Subscribing Reinsurer participate in the interests and liabilities of the other subscribing reinsurers. 

IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized representative has executed this Agreement as of the date specified below:

 Signed this 6th day of January, 2015. 

 

			
	 BGS SERVICES (BERMUDA) LIMITED

for and on behalf of

BRIT SYNDICATE 2987 AT LLOYD’S

		
	By		 /s/ Joe Bonanno

		
	Print Name		 Joe Bonanno

		
	Title		 SVP

 

	
	  
 

 
 

Table of Contents

 INTERESTS AND LIABILITIES AGREEMENT 

(the “Agreement”) 
 of

 CATLIN UNDERWRITING AGENCIES LIMITED (#2003) 

(the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
CATASTROPHE EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

SILVER OAK CASUALTY, INC. 

both of Omaha, Nebraska 

and 
 AMERICAN INTERSTATE
INSURANCE COMPANY OF TEXAS 
 Austin, Texas 

and 
 any other insurance
companies which are now or hereafter come under the ownership, 
 control or management of Amerisafe, Inc. 

(collectively the “Company”) 
 The
Subscribing Reinsurer shall have a 10.00% share in the interests and liabilities of the “Reinsurer” as set forth in the Contract attached hereto and executed by the Company. 

This Agreement shall commence at 12:01 a.m., Standard Time, January 1, 2015 and shall continue in force until 12:01 a.m., Standard Time, January 1,
2016. 
 The share of the Subscribing Reinsurer in the interests and liabilities of the “Reinsurer” shall be several and not joint with the share
of any other subscribing reinsurer. In no event shall the Subscribing Reinsurer participate in the interests and liabilities of the other subscribing reinsurers. 

IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized representative has executed this Agreement as of the date specified below:

 Signed this 6th day of January, 2015. 

 

			
	 CATLIN UNDERWRITING, INC.

on behalf of CATLIN UNDERWRITING AGENCIES LIMITED (#2003)

		
	By		 /s/ Michael Orlich

		
	Print Name		 Michael Orlich

		
	Title		 Vice President

Table of Contents

 INTERESTS AND LIABILITIES AGREEMENT 

(the “Agreement”) 
 of

 MONTPELIER REINSURANCE LIMITED 

(the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
CATASTROPHE EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

SILVER OAK CASUALTY, INC. 

both of Omaha, Nebraska 

and 
 AMERICAN INTERSTATE
INSURANCE COMPANY OF TEXAS 
 Austin, Texas 

and 
 any other insurance
companies which are now or hereafter come under the ownership, 
 control or management of Amerisafe, Inc. 

(collectively the “Company”) 
 The
Subscribing Reinsurer shall have a 5.00% share in the interests and liabilities of the “Reinsurer” as set forth in the Contract attached hereto and executed by the Company. 

This Agreement shall commence at 12:01 a.m., Standard Time, January 1, 2015 and shall continue in force until 12:01 a.m., Standard Time, January 1,
2016. 
 The share of the Subscribing Reinsurer in the interests and liabilities of the “Reinsurer” shall be several and not joint with the share
of any other subscribing reinsurer. In no event shall the Subscribing Reinsurer participate in the interests and liabilities of the other subscribing reinsurers. 

IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized representative has executed this Agreement as of the date
specified below: 
 Signed this 9th day of January, 2015. 

 

			
	IOA REINSURANCE UNDERWRITING MANAGERS on behalf of MONTPELIER REINSURANCE LIMITED
		
	By		 /s/ William Reichert

		
	Print Name		 William Reichert

		
	Title		 Senior Vice President

 

	
	  
  
 

 
 

Table of Contents

 INTERESTS AND LIABILITIES AGREEMENT 

(the “Agreement”) 
 of

 MUNICH REINSURANCE AMERICA, INC. 

(the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
CATASTROPHE EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

SILVER OAK CASUALTY, INC. 

both of Omaha, Nebraska 

and 
 AMERICAN INTERSTATE
INSURANCE COMPANY OF TEXAS 
 Austin, Texas 

and 
 any other insurance
companies which are now or hereafter come under the ownership, 
 control or management of Amerisafe, Inc. 

(collectively the “Company”) 
 The
Subscribing Reinsurer shall have a 10.00% share in the interests and liabilities of the “Reinsurer” as set forth in the Contract attached hereto and executed by the Company. 

This Agreement shall commence at 12:01 a.m., Standard Time, January 1, 2015 and shall continue in force until 12:01 a.m., Standard Time, January 1,
2016. 
 The share of the Subscribing Reinsurer in the interests and liabilities of the “Reinsurer” shall be several and not joint with the share
of any other subscribing reinsurer. In no event shall the Subscribing Reinsurer participate in the interests and liabilities of the other subscribing reinsurers. 

IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized representative has executed this Agreement as of the date specified below: 

Signed this 6th day of January, 2015. 

 

			
	MUNICH REINSURANCE AMERICA, INC.
		
	By		 /s/ Michael Schummer / Michelle R Glass

		
	Print Name		 Michael Schummer / Michelle R Glass

		
	Title		 SVP / SVP

Table of Contents

			
	 51 Lime Street, London EC3M 7DQ
 Telephone:
+44 (0)20 3124 6000    Website: www.willis.com
		

 Reinsurance Contract 10074N15 

MARKET SUMMARY 
  

			
	 Order hereon:
		  47.50%
		
	 EFFECTED WITH:
		

  

					
		
	 	27.50	% 		Underwriters at Lloyd’s, as per schedule below
		
	 	10.00	% 		 Markel at Lloyd’s – Zurich Branch

Branch of Alterra UK Underwriting Services Limited,
 on behalf of
Lloyd’s Syndicate 3000

		
	 	10.00	% 		 Houston Casualty Company (UK Branch),

London, England

	  
	  
	 	 	
		
	 	47.50	% 		
	  
	  
	 	 	

 LLOYD’S UNDERWRITERS 
  

											
	Signed Line	 	 	Syndicate Number	 	Pseudonym	 	NAIC Code	 
				
	 	10.00	% 	 	4472	 	LIB	 	 	AA-1126006	  
				
	 	7.50	% 	 	1955	 	BAR	 	 	AA-1120084	  
				
	 	10.00	% 	 	1084	 	CSL	 	 	AA-1127084	  
	  
	  
	 	 		 		 			
				
	 	27.50	% 								
	  
	  
	 	 		 		 			

  
 NB / 31-12-14 

  
 Willis Limited,
Lloyd’s broker, authorised and regulated by the Financial Conduct Authority. 
 Registered office: 51 Lime Street, London EC3M 7DQ.
Registered number 181116 England and Wales 

Table of Contents

			
	 51 Lime Street, London EC3M 7DQ
 Telephone:
+44 (0)20 3124 6000    Website: www.willis.com
		

  
 Reinsurance Contract
10074N15 
 MARKET SUMMARY 

For and on behalf of 
 Willis
Limited 
  

					
	

				

	Authorised Signatory				Authorised Signatory

  
 NB / 31-12-14 

  
 Willis Limited,
Lloyd’s broker, authorised and regulated by the Financial Conduct Authority. 
 Registered office: 51 Lime Street, London EC3M 7DQ.
Registered number 181116 England and Wales 

Table of Contents

 

 
 MRC Format Exempt — Client Requirement 

 

					
	WILLIS LIMITED		B0801WLM
		
	Agreement Number:		10074N15
		
	Reinsured:		American Interstate Insurance Company
		
	Type of Agreement:		Casualty Catastrophe Excess of Loss Reinsurance Contract
		
	Period:		12 months commencing 1st January 2015
		
	Client Shortname:		WILREINC
		
	Client Ref:		93948003-15
		
	Previous Ref:		10074N14
		
	Client Longname:		Willis Re Inc., Texas
		
	Brokerage:		15% brokerage, split 10% Willis Re Inc. and 5% Willis Re London
			
	Account Executive:		Graeme Meachem		Extn: 17449
			
	London Technician:		Sean Brown		Extn: 27074

  
 NB / 22-12-14 

  
 Willis Limited,
Lloyd’s broker, authorised and regulated by the Financial Conduct Authority. 
 Registered office: 51 Lime Street, London EC3M 7DQ.
Registered number 181116 England and Wales 

Table of Contents

					
	 UMR
 Reinsured

Type
		 : B080110074N15
 : American Interstate
Insurance Company
 : Casualty Catastrophe Excess of Loss
		

  

			
	UNIQUE MARKET REFERENCE:		B080110074N15
		
	REINSURED:		American Interstate Insurance Company
		
	TYPE:		Casualty Catastrophe Excess of Loss Reinsurance Contract
		
	PERIOD:		This Contract will apply to all losses occurring during the period January 1, 2015, 12:01 a.m., Standard Time (as set forth in the Company’s policies), to January 1, 2016, 12:01 a.m., Standard Time.
		
	TAXES PAYABLE BY REINSURED AND ADMINISTERED BY REINSURERS:		None.
		
	TAXES PAYABLE BY REINSURER(S) AND ADMINISTERED BY THE REINSURED OR THEIR AGENT:		1% Federal Excise Tax where applicable or as statutorily required.
		
	 REINSURER

CONTRACT
 DOCUMENTATION:
		  
  

This Reinsurance Agreement details the Agreement terms entered into by the Reinsurer(s) and constitutes the Reinsurance Agreement.

 
 Any further documentation changing this Agreement, which has been appropriately agreed,
shall form the evidence of such change(s)
  
 Full contractual wording (93984003-15
[12-19-14]) is incorporated.

 The “Risk Details” section represents only a convenient summary of the Contractual Wording and is not itself
contractually binding. 
  
 NB / 22-12-14 

  
 Willis Limited,
Lloyd’s broker, authorised and regulated by the Financial Conduct Authority. 
 Registered office: 51 Lime Street, London EC3M 7DQ.
Registered number 181116 England and Wales 

Table of Contents

 AMERICAN INTERSTATE INSURANCE COMPANY 

SILVER OAK CASUALTY, INC. 

both of Omaha, Nebraska 

and 
 AMERICAN INTERSTATE
INSURANCE COMPANY OF TEXAS 
 Austin, Texas 

and 
 any other insurance
companies which are now or hereafter come under the ownership, 
 control or management of Amerisafe, Inc. 

CASUALTY CATASTROPHE EXCESS OF LOSS 

REINSURANCE CONTRACT 

Table of Contents

 TABLE OF CONTENTS 

 

							
	 ARTICLE
	 	 	  	PAGE	 
			
	I	 	 BUSINESS COVERED
	  	 	1	  
			
	II	 	 TERM
	  	 	2	  
			
	III	 	 SPECIAL TERMINATION
	  	 	2	  
			
	IV	 	 DEFINITIONS
	  	 	4	  
			
		 	 Act of Terrorism
	  	 	4	  
			
		 	 Declaratory Judgment Expense
	  	 	4	  
			
		 	 Extra Contractual Obligations/Loss in Excess of Policy Limits
	  	 	4	  
			
		 	 Loss Adjustment Expense
	  	 	5	  
			
		 	 Loss Occurrence
	  	 	5	  
			
		 	 Net Earned Premium
	  	 	6	  
			
		 	 Policy
	  	 	6	  
			
	V	 	 TERRITORY
	  	 	6	  
			
	VI	 	 EXCLUSIONS
	  	 	7	  
			
	VII	 	 TERRORISM ACT RECOVERIES
	  	 	9	  
			
	VIII	 	 COVERAGE
	  	 	9	  
			
	IX	 	 REINSTATEMENT
	  	 	10	  
			
	X	 	 SPECIAL ACCEPTANCE
	  	 	10	  
			
	XI	 	 ACCOUNTING BASIS
	  	 	11	  
			
	XII	 	 REINSURANCE PREMIUM
	  	 	11	  
			
	XIII	 	 NOTICE OF LOSS AND LOSS SETTLEMENTS
	  	 	11	  
			
	XIV	 	 LIABILITY OF REINSURERS
	  	 	12	  
			
	XV	 	 LATE PAYMENTS
	  	 	12	  
			
	XVI	 	 ANNUITIES AT THE COMPANY’S OPTION
	  	 	13	  
			
	XVII	 	 AGENCY AGREEMENT
	  	 	14	  
			
	XVIII	 	 SUBROGATION
	  	 	14	  
			
	XIX	 	 ERRORS AND OMISSIONS
	  	 	14	  
			
	XX	 	 OFFSET
	  	 	14	  
			
	XXI	 	 CURRENCY
	  	 	15	  
			
	XXII	 	 TAXES
	  	 	15	  
			
	XXIII	 	 FEDERAL EXCISE TAX
	  	 	15	  
			
	XXIV	 	 FOREIGN ACCOUNT TAX COMPLIANCE ACT (“FATCA”)
	  	 	15	  
			
	XXV	 	 RESERVES AND FUNDING
	  	 	16	  
			
	XXVI	 	 NET RETAINED LINES
	  	 	18	  

Table of Contents

							
			
	XXVII		 THIRD PARTY RIGHTS
		 	19	  
			
	XXVIII		 SEVERABILITY
		 	19	  
			
	XXIX		 GOVERNING LAW
		 	19	  
			
	XXX		 INSPECTION OF RECORDS
		 	19	  
			
	XXXI		 CONFIDENTIALITY
		 	20	  
			
	XXXII		 SUNSET AND COMMUTATION
		 	21	  
			
	XXXIII		 INSOLVENCY
		 	22	  
			
	XXXIV		 ARBITRATION
		 	23	  
			
	XXXV		 EXPEDITED ARBITRATION
		 	25	  
			
	XXXVI		 SERVICE OF SUIT
		 	25	  
			
	XXXVII		 ENTIRE AGREEMENT
		 	26	  
			
	XXXVIII		 MODE OF EXECUTION
		 	26	  
			
	XXXIX		 INTERMEDIARY
		 	27	  
			
			 Nuclear Incident Exclusion Clause - Liability - Reinsurance - U.S.A.
				

Table of Contents

 CASUALTY CATASTROPHE EXCESS OF LOSS 

REINSURANCE CONTRACT 
 (the
“Contract”) 
 between 

AMERICAN INTERSTATE INSURANCE COMPANY 

SILVER OAK CASUALTY, INC. 

both of Omaha, Nebraska 

and 
 AMERICAN
INTERSTATE INSURANCE COMPANY OF TEXAS 
 Austin, Texas 

and 
 any other
insurance companies which are now or hereafter come under the ownership, 
 control or management of Amerisafe, Inc. 

(the “Company”) 
 and

 THE SUBSCRIBING REINSURER(S) EXECUTING THE 

INTERESTS AND LIABILITIES AGREEMENT(S) 

ATTACHED HERETO 
 (the
“Reinsurer”) 
 ARTICLE I 

BUSINESS COVERED 
  

	A.	By this Contract the Reinsurer agrees to reinsure the excess liability of the Company under its Policies that are in force at the effective time and date hereof or issued or renewed at or after that time and date, and
classified by the Company as Workers’ Compensation, Employers Liability, including but not limited to coverage provided under the U.S. Longshore and Harbor Workers’ Compensation Act, Jones Act, Outer Continental Shelf Lands Act and any
other Federal Coverage extensions, subject to the terms, conditions and limitations hereafter set forth. 

  

	B.	The Reinsurer further agrees to reinsure the excess liability of the Company under Policies issued by Cooperative Mutual Insurance Company that are in force at the effective time and date hereof or issued or renewed at
or after that time and date, and classified by the Company as Workers’ Compensation, Employers Liability, including but not limited to coverage provided under the U.S. Longshore and Harbor Workers’ Compensation Act, Jones Act, Outer
Continental Shelf Lands Act and any other Federal Coverage extensions, subject to the terms, conditions and limitations hereafter set forth. 

  
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 ARTICLE II 

TERM 
  

	A.	This Contract will apply to all losses occurring during the period January 1, 2015, 12:01 a.m. Standard Time (as set forth in the Company’s policies), to January 1, 2016, 12:01 a.m. Standard Time.

  

	B.	Upon the expiration or termination of this Contract, the entire liability of the Reinsurer for losses occurring subsequent to the date of expiration shall cease concurrently with the date of expiration of this Contract.

  

	C.	Notwithstanding the above, upon expiration or termination of this Contract, the Company shall have the option of requiring that the Reinsurer shall remain liable for losses occurring under Policies in force on the
expiration or termination date of this Contract until the next renewal, termination, or natural expiration date of such Policies or until 12 months (plus “odd time,” not to exceed 18 months in all) following the date of
expiration (whichever occurs first). 

  

	D.	If this Contract 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 Contract, be determined as if the
entire Loss Occurrence had occurred prior to the expiration of this Contract, provided that no part of such Loss Occurrence is claimed against any renewal or replacement of this Contract. 

ARTICLE III 
 SPECIAL
TERMINATION 
  

	A.	The Company may terminate a subscribing reinsurer’s share in this Contract by giving written notice to the subscribing reinsurer upon the happening of any one of the following circumstances: 

 

	 	1.	A State Insurance Department or other legal authority orders the subscribing reinsurer to cease writing business, or 

  

	 	2.	The subscribing reinsurer has become insolvent or has been placed into liquidation or receivership (whether voluntary or involuntary), or there has been instituted against it proceedings for the appointment of a
receiver, liquidator, rehabilitator, conservator, or trustee in bankruptcy, or other agent known by whatever name, to take possession of its assets or control of its operations, or 

 

	 	3.	For any period not exceeding 12 months which commences no earlier than 12 months prior to the inception of this Contract, the subscribing reinsurer’s policyholders’ surplus, as reported in the
financial statements of the subscribing reinsurer, has been reduced by 20.0% or more, or 

  
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	 	4.	The subscribing reinsurer has become merged with, acquired or controlled by any company, corporation, or individual(s) not controlling the subscribing reinsurer’s operations previously, or 

 

	 	5.	The subscribing reinsurer has reinsured its entire liability under this Contract without the Company’s prior written consent, or 

 

	 	6.	The subscribing reinsurer receives an A. M. Best rating of lower than A-, or an S&P financial strength rating of lower than A-, or

  

	 	7.	The subscribing reinsurer has ceased writing new and renewal reinsurance for the lines of business covered hereunder. 

  

	B.	In the event of such termination, the liability of the subscribing reinsurer shall be terminated, at the Company’s option, either in accordance with the cutoff provisions of paragraph B of the TERM ARTICLE or
in accordance with the runoff provisions of paragraph C of the TERM ARTICLE, and such termination shall be effective as of the date the subscribing reinsurer receives written notice of termination pursuant to paragraph A above. 

 

	C.	In the event the Company terminates a subscribing reinsurer’s share in this Contract under the provisions of this Article, the Company shall have the option to commute the excess liabilities of the subscribing
reinsurer. If this commutation option is exercised, the provisions of the paragraphs B through G of the SUNSET AND COMMUTATION ARTICLE shall apply. 

  

	D.	In the event the Company terminates a subscribing reinsurer’s share in this Contract under the provision of this Article, the Company shall have the option to require the subscribing reinsurer to fund its share of
ceded unearned premium, outstanding loss and Loss Adjustment Expense reserves, reserves for losses and Loss Adjustment Expense incurred but not reported to the Company (IBNR as determined by the Company) and any other balances or financial
obligations. Within 30 days of the Company’s written request to fund, the subscribing reinsurer shall provide to the Company a clean, unconditional, evergreen, irrevocable letter of credit or a trust agreement which establishes a trust account
for the benefit of the Company. The method of funding must be acceptable to the Company, shall be established with a financial institution suitable to the Company, shall comply with any applicable state or federal laws or regulations involving the
Company’s ability to recognize these agreements as assets or offsets to liabilities in such jurisdictions and shall be at the sole expense of the subscribing reinsurer. The Company and the subscribing reinsurer may mutually agree on alternative
methods of funding or the use of a combination of methods. This option is available to the Company at any time there remains any outstanding liabilities of the subscribing reinsurer. Notwithstanding the foregoing, the Company shall not require
funding in accordance with this subparagraph in the event the subscribing reinsurer has otherwise fully funded its obligations under this Contract in a manner acceptable to the Company. 

  
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 ARTICLE IV 

DEFINITIONS 
  

	A.	Act of Terrorism 

 “Act of Terrorism” as used herein shall follow the definition
provided under the Terrorism Risk Insurance Act of 2002 (TRIA) and as amended by the Terrorism Risk Insurance Extension Act of 2005 (TRIEA) and the Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIPRA), together and including any
extensions or replacement thereof, the “Terrorism Act.” 
 In the event the Terrorism Act is not extended or renewed, Act of
Terrorism shall mean a violent act or an act that is dangerous to human life; property; or infrastructure that 1) has resulted in damage within the United States, or outside of the United States in the case of an air carrier or vessel, 2) was
committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. The Company shall determine the
application of the above definition. 
 An “Act of Terrorism” may include an act involving the use and/or dispersal of nuclear,
chemical, biological or radiological agents. 
  

	B.	Declaratory Judgment Expense 

 “Declaratory Judgment Expense” as used herein shall
mean all expenses incurred by the Company in connection with a declaratory judgment action brought to determine the Company’s defense and/or indemnification obligations that are allocable to a specific claim subject to this Contract.
Declaratory Judgment Expense shall be deemed to have been incurred on the date of the original loss (if any) giving rise to the declaratory judgment action. 
  

	C.	Extra Contractual Obligations/Loss in Excess of Policy Limits 

  

	 	1.	Extra Contractual Obligations 

 This Contract shall protect the Company for any “Extra
Contractual Obligations” which as used herein shall mean any punitive, exemplary, compensatory or consequential damages, other than Loss in Excess of Policy Limits, paid or payable by the Company as a result of an action against it by its
insured, its insured’s assignee or a third party claimant, by reason of alleged or actual negligence, fraud or bad faith on the part of the Company in handling a claim under a Policy subject to this Contract. 

An Extra Contractual Obligation shall be deemed to have occurred on the same date as the loss covered or alleged to be covered under the
Policy. 

  
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	 	2.	Loss in Excess of Policy Limits 

 This Contract shall protect the Company for any “Loss in
Excess of Policy Limits” which as used herein shall mean an amount that the Company would have been contractually liable to pay had it not been for the limit of the original Policy as a result of an action against it by its insured, its
insured’s assignee or a third party claimant. Such loss in excess of the limit shall have been incurred because of failure by the Company to settle within the Policy limit, or by reason of alleged or actual negligence, fraud, or bad faith in
rejecting an offer of settlement or in the preparation of the defense or in the trial of any action against its insured or in the preparation or prosecution of an appeal consequent upon such action. 

 

	 	3.	This paragraph C shall not apply where an Extra Contractual Obligation and/or Loss in Excess of Policy Limits has been incurred due to an adjudicated finding of fraud committed by a member of the Board of Directors
or a corporate officer of the Company acting individually or collectively or in collusion with a member of the Board of Directors or a corporate officer or a partner of any other corporation or partnership. 

 

	D.	Loss Adjustment Expense 

 “Loss Adjustment Expense” as used herein shall mean all
costs and expenses allocable to a specific claim that are incurred by the Company in the investigation, appraisal, adjustment, settlement, litigation, defense or appeal of a specific claim, including court costs and costs of supersedeas and appeal
bonds, and including 1) pre-judgment interest, unless included as part of the award or judgment; 2) post-judgment interest; 3) legal expenses and costs incurred in
connection with coverage questions and legal actions connected thereto, including Declaratory Judgment Expense; and 4) a pro rata share of salaries and expenses of Company field employees, and expenses of other Company employees who have been
temporarily diverted from their normal and customary duties and assigned to the field adjustment of losses covered by this Contract. Loss Adjustment Expense does not include unallocated loss adjustment expense. Unallocated loss adjustment expense
includes, but is not limited to, salaries and expenses of employees, other than (4) above, and office and other overhead expenses. 
  

	E.	Loss Occurrence 

 “Loss Occurrence” as used in this Contract shall mean any one
disaster or casualty or accident or loss or series of disasters or casualties or accidents or losses arising out of or caused by one event. The Company shall be the sole judge of what constitutes one event as outlined herein and in the original
Policy. 
 As respects losses resulting from Occupational or Industrial Disease or Cumulative Trauma, each employee shall be considered a
separate Loss Occurrence subject to the following: 
 Losses resulting from Occupational or Industrial Disease or Cumulative Trauma suffered
by employees of an insured for which the employer is liable, as a result of a sudden and accidental event not exceeding 72 hours in duration, shall be considered one Loss Occurrence and may be combined with losses classified as other than
Occupational or Industrial Disease or Cumulative Trauma which arise out of the same event and the combination of such losses shall be considered as one Loss Occurrence within the meaning hereof. 

  
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 A loss with respect to each employee affected by an Occupational Disease or Cumulative Trauma
shall be deemed to have been sustained by the Company on the date of the beginning of the disability for which compensation is payable. 

The terms “Occupational or Industrial Disease” and “Cumulative Trauma” as used in this Contract shall be as defined by
applicable statutes or regulations. 
  

	F.	Net Earned Premium 

 “Net Earned Premium” as used herein is defined as gross earned
premium of the Company for the classes of business reinsured hereunder, less the earned portion of premiums ceded by the Company for reinsurance which inures to the benefit of this Contract and less dividends paid or accrued. 

 

	G.	Policy 

 “Policy” or “Policies” as used herein shall mean the Company’s
or Cooperative Mutual Insurance Company’s binders, policies and contracts providing insurance or reinsurance on the classes of business covered under this Contract. 
  

	H.	Ultimate Net Loss 

 “Ultimate Net Loss” shall mean the actual loss, including any
pre-judgment interest which is included as part of the award or judgment, “Second Injury Fund” assessments that can be allocated to specific claims, Loss Adjustment Expense, 90% of Loss in Excess of Policy Limits, and 90% of Extra
Contractual Obligations, paid or to be paid by the Company on its net retained liability after making deductions for all recoveries, subrogations and all claims on inuring reinsurance, whether collectible or not; provided, however, that in the event
of the insolvency of the Company, payment by the Reinsurer shall be made in accordance with the provisions of the INSOLVENCY ARTICLE. Nothing herein shall be construed to mean that losses under this Contract are not recoverable until the
Company’s Ultimate Net Loss has been ascertained. 
 Notwithstanding the definition of “Ultimate Net Loss” herein, the
provisions of paragraph H of the COVERAGE ARTICLE as respects the Minnesota Workers’ Compensation Reinsurance Association shall apply. 

ARTICLE V 
 TERRITORY

 The territorial limits of this Contract shall be identical with those of the Company’s Policies. 

  
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 ARTICLE VI 

EXCLUSIONS 
  

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

  

	 	1.	Reinsurance assumed by the Company under obligatory reinsurance agreements, except: 

  

	 	a.	Agency reinsurance where the policies involved are to be reunderwritten in accordance with the underwriting standards of the Company and reissued as Company policies at the next anniversary or expiration date; and

  

	 	b.	Intercompany reinsurance between any of the reinsured companies under this Contract. 

  

	 	c.	Reinsurance assumed through Policies issued by Cooperative Mutual Insurance Company. 

  

	 	2.	Nuclear risks as defined in the “Nuclear Incident Exclusion Clause – Liability – Reinsurance – U.S.A.” (NMA 1590 21/9/67) attached hereto. 

 

	 	3.	Liability as a member, subscriber or reinsurer of any Pool, Syndicate or Association, including Assigned Risk Plans or similar plans; however, this exclusion shall not apply to liability under a Policy specifically
designated to the Company from an Assigned Risk Plan or similar plan. 

  

	 	4.	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. 

  

	 	5.	Loss caused directly or indirectly by war, whether or not declared, civil war, insurrection, rebellion or revolution, or any act or condition incidental to any of the foregoing. This exclusion shall not apply to any
Policy that contains a standard war exclusion. 

  

	 	6.	Workers’ Compensation where the principal exposure, as defined by the governing class code, is: 

  

	 	a.	Operation of aircraft, but only if the annual estimated policy premium is $250,000 or more; 

  

	 	b.	Operation of Railroads, subways or street railways; 

  

	 	c.	Manufacturing, assembly, packing or processing of fireworks, fuses, nitroglycerine, magnesium, pyroxylin, ammunition or explosives. This exclusion does not apply to the assembly, packing or processing of explosives when
the estimated annual premium is under $250,000 and does not apply to the commercial use of explosives; 

  

	 	d.	Underground mining. 

  

	 	7.	Professional sports teams. 

  
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	B.	Notwithstanding the foregoing, insureds regularly engaged in operations not excluded under paragraph A above, but whose operations may include one or more perils excluded therein, shall not be excluded from coverage
afforded by this Contract, provided said operations are incidental to the main operations of the insured. Notwithstanding the foregoing, coverage extended under this paragraph for incidental operations of an insured shall not apply to exposures
excluded under subparagraphs 1 through 5 of paragraph A above. The Company shall be the judge of what constitutes an incidental part of the insured’s operation. 

 

	C.	Except for subparagraphs 1 through 5 of paragraph A above, if the Company is inadvertently bound or is unknowingly exposed (due to error or automatic provisions of policy coverage) on a risk otherwise excluded in
paragraph A above, such exclusion shall be waived. The duration of said waiver will not extend beyond the time that notice of such coverage has been received by a responsible underwriting authority of the Company and for a period not
exceeding 30 days thereafter, or such longer period required to conform with any notice of cancellation provisions prescribed by regulatory authorities, such period not to exceed 12 months plus odd time (not exceeding 18 months). 

 

	D.	If the Company is required to accept an assigned risk which conflicts with one or more of the exclusions set forth in subparagraph 5 of paragraph A, reinsurance shall apply, but only for the difference between the
Company’s retention and the limit required by the applicable state statute, and in no event shall the Reinsurer’s liability exceed the limit set forth in the Coverage Article. 

 

	E.	Notwithstanding the foregoing, any reinsurance falling within the scope of one or more of the exclusions set forth above that is specially accepted by the Reinsurer from the Company shall be covered under this Contract
and be subject to the terms hereof. 

  

	F.	Except for subparagraphs 1 through 5 of paragraph A above, should an arbitration decision or any judicial or regulatory entity having competent jurisdiction invalidate any exclusion or expand coverage of the
original Policy of the Company, any amount of Loss for which the Company would not be liable, except for such invalidation or expansion of coverage, shall not be subject to any of the exclusions, conditions and limitations hereinafter set
forth under this Contract. 

  
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 ARTICLE VII 

TERRORISM ACT RECOVERIES 
  

	A.	Any financial assistance the Company receives under the Terrorism Act, shall apply as follows: 

  

	 	1.	Except as provided in subparagraph 2 below, any such financial assistance shall inure solely to the benefit of the Company and shall be entirely disregarded in applying all of the provisions of this Contract.

  

	 	2.	If losses occurring hereunder result in recoveries made by the Company both under this Contract and under the Terrorism Act, and such recoveries, together with any other reinsurance recoverables made by the Company
applicable to said losses, exceed the total amount of the Company’s insured losses, any amount in excess thereof shall reduce the Ultimate Net Loss subject to this Contract for the losses to which the Terrorism Act assistance applies. These
recoveries shall be returned in proportion to each Reinsurer’s paid share of the loss. 

  

	B.	Nothing herein shall be construed to mean that the losses under this Contract are not recoverable until the Company has received financial assistance under the Terrorism Act. 

ARTICLE VIII 
 COVERAGE

  

	A.	The Reinsurer shall be liable for the Ultimate Net Loss in excess of $10,000,000 as a result of any one Loss Occurrence. The Reinsurer’s liability in respect of any one Loss Occurrence shall not exceed $60,000,000.

  

	B.	The Reinsurer’s liability in respect of Ultimate Net Loss amounts recoverable hereunder for an Act of Terrorism (as defined in the definition of “Act of Terrorism”) occurring during the term of this
Contract shall not exceed $60,000,000. This paragraph is not subject the REINSTATEMENT ARTICLE. 

  

	C.	The Reinsurer’s liability in respect of all losses occurring during the term of this Contract shall not exceed $120,000,000. 

  

	D.	As respects the statutory portion of any Workers’ Compensation Policy, the Company’s Ultimate Net Loss subject to this Contract shall not exceed $10,000,000 as respects any one life, each Loss Occurrence

  

	E.	The Company shall be permitted to purchase (or maintain) other reinsurance which inures to the benefit of this Contract. 

  

	F.	The Company shall be permitted to carry underlying 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 Contract.

  

	G.	As respects Employers Liability, the maximum net subject Policy limit (except statutory where required by law) as respects any one Policy shall be $2,000,000 or the Company shall be deemed to have purchased inuring
excess facultative reinsurance for subject Policy limits in excess of $2,000,000. 

  

	H.	 The Company shall be permitted to carry excess of loss reinsurance applying to Workers’ Compensation risks in the State of Minnesota, actual
recoveries under which shall inure to 

  
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the benefit of this Contract. Such coverage shall be provided through the Minnesota Workers’ Compensation Reinsurance Association. Notwithstanding the treatment of inuring coverage in the
definition of Ultimate Net Loss, the liability of the Reinsurer for Minnesota Workers’ Compensation risks is not released. 

ARTICLE IX 
 REINSTATEMENT

  

	A.	Should all or any part of the Reinsurer’s limit of liability be exhausted as a result of a Loss Occurrence, the sum so exhausted shall be reinstated from the date the Loss Occurrence commenced. 

 

	B.	For each amount so reinstated, the Company agrees to pay an additional premium at the time of the Reinsurer’s payment of the loss calculated in accordance with the following formula: 

 

	 	1.	The percentage of the Reinsurer’s limit of liability exhausted for the Loss Occurrence; times 

  

	 	2.	The Net Earned Premium for the term of this Contract (exclusive of reinstatement premium). 

 The
dollar amount resulting from the multiplication of subparagraphs 1 and 2 above shall equal the reinstatement premium. If at the time of the Reinsurer’s payment of a loss hereon, the reinsurance premium as calculated under this Contract is
unknown, the calculation of the reinstatement premium shall be based upon the deposit premium subject to adjustment when the reinsurance premium is finally established. 
  

	C.	Nevertheless, the Reinsurer’s liability hereunder shall not exceed $60,000,000 in respect of any one Loss Occurrence, and shall be further limited to $120,000,000 in respect of all losses occurring during the term
of this Contract. 

 ARTICLE X 

SPECIAL ACCEPTANCE 
 From time to time the Company
may request a special acceptance applicable to this Contract. For purposes of this Contract, in the event each subscribing reinsurer whose share in the interests and liabilities of the Reinsurer is 20% or greater agree to a special acceptance, such
agreement shall be binding on all subscribing reinsurers. If such agreement is not achieved, such special acceptance shall be made to this Contract only with respect to the interests and liabilities of each subscribing reinsurer who agrees to the
special acceptance. Should denial for special acceptance not be received within 10 working days of said request, the special acceptance shall be deemed automatically agreed. In the event a reinsurer becomes a party to this Contract subsequent to one
or more special acceptances hereunder, the new reinsurer shall automatically accept such special acceptance(s) as being covered hereunder. 

  
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 ARTICLE XI 

ACCOUNTING BASIS 
 All premiums and losses under
this Contract shall be reported on an “accident year” accounting basis. Unless specified otherwise herein, all premiums shall be credited to the period during which they earn, and all losses shall be charged to the period during which they
occur. 
 ARTICLE XII 

REINSURANCE PREMIUM 
  

	A.	As premium for the reinsurance provided hereunder, the Company shall pay the Reinsurer 0.47% times its Net Earned Premium for the term of this Contract subject to a Minimum Premium of $1,440,000. 

 

	B.	The Company shall pay the Reinsurer a Deposit Premium of $1,800,000 payable in quarterly installments on January 1, April 1, July 1 and October 1. 

 

	C.	Within 90 days after the expiration of this Contract, the Company shall provide a report to the Reinsurer setting forth the premium due hereunder, computed in accordance with paragraph A, and if the premium so
computed is greater than the previously paid Deposit Premium, the balance shall be remitted by the Company with its report. 

  

	D.	If this Contract expires on a runoff basis, the Company shall pay to the Reinsurer a premium for the runoff period equal to the expiring rate times its Net Earned Premium for the runoff period. The runoff premium shall
be calculated and paid within 90 days after the end of each three-month period during the runoff period. There shall be no minimum premium requirement for the runoff period. 

ARTICLE XIII 
 NOTICE OF LOSS
AND LOSS SETTLEMENTS 
  

	A.	As soon as practicable, the Company shall advise the Reinsurer of all bodily injury claims or losses involving any of the following: 

 

	 	1.	Any claim or loss reserved at 50.0% or more of the Company’s retention under this Contract. 

  

	 	2.	Any claim involving any of the following injuries where the Company’s incurred loss is greater than or equal to $1,000,000: 

  

	 	a.	Fatality. 

  

	 	b.	Spinal cord injuries (e.g., quadriplegia, paraplegia). 

  

	 	c.	Brain damage (e.g., seizure, coma or physical/mental impairment). 

  
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	 	d.	Severe burn injuries resulting in disfigurement or scarring. 

  

	 	e.	Total or partial blindness in one or both eyes. 

  

	 	f.	Major organ (e.g., heart, lungs). 

  

	 	g.	Amputation of a limb or multiple fractures. 

  

	B.	The Company shall also advise the Reinsurer promptly of all losses which, in the opinion of the Company, may result in a claim hereunder and of all subsequent developments thereto which, in the opinion of the Company,
may materially affect the position of the Reinsurer. 

  

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

  

	D.	All loss settlements made by the Company that are within the terms and conditions of this Contract (including but not limited to ex gratia payments) shall be binding upon the Reinsurer. Upon receipt of satisfactory
proof of loss, the Reinsurer agrees to promptly pay or allow, as the case may be, its share of each such settlement in accordance with this Contract. 

ARTICLE XIV 
 LIABILITY OF
REINSURERS 
 All reinsurances for which the Reinsurer shall be liable by virtue of this Contract shall be subject in all respects to the same rates,
terms, conditions, interpretations and waivers and to the same modifications, alterations, and cancellations, as the respective policies to which such reinsurances relate, the true intent of the parties to this Contract being that the Reinsurer
shall follow the fortunes of the Company. 
 ARTICLE XV 

LATE PAYMENTS 
  

	A.	In the event any premium, loss or other payment due either party is not received by the Intermediary hereunder by the payment due date, the party to whom payment is due may, by notifying the Intermediary in writing,
require the debtor party to pay, and the debtor party agrees to pay, an interest penalty on the amount past due calculated for each such payment on the last business day of each month as follows: 

 

	 	1.	The number of full days which have expired since the due date or the last monthly calculation, whichever the lesser; times 

  
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	 	2.	1/365ths of a rate equal to the 90-day Treasury Bill rate as published in The Wall Street Journal on the first business day following the date a remittance becomes due; times 

 

	 	3.	The amount past due, including accrued interest. 

 It is agreed that interest shall accumulate
until payment of the original amount due plus interest penalties have been received by the Intermediary. 
  

	B.	The establishment of the due date shall, for purposes of this Article, be determined as follows: 

  

	 	1.	As respects the payment of deposits and premiums due the Reinsurer, the due date shall be as provided for in the applicable section of this Contract. 

 

	 	2.	Any claim or loss payment due the Company hereunder shall be deemed due 10 business days after the proof of loss or demand for payment is transmitted to the Reinsurer. If such loss or claim payment is not received
within the 10 days, interest will accrue on the payment or amount overdue in accordance with the interest penalty calculation above, from the date the proof of loss or demand for payment was transmitted to the Reinsurer. 

 

	 	3.	As respects any payment, adjustment or return due either party not otherwise provided for in subparagraphs 1 and 2 of this paragraph, the due date shall be as provided for in the applicable section of this Contract.

  

	C.	For purposes of interest calculation only, amounts due hereunder shall be deemed paid upon receipt by the Intermediary. The validity of any claim or payment may be contested under the provisions of this Contract. If the
debtor party prevails in an arbitration, or any other proceeding, there shall be no interest penalty due. Otherwise, any interest will be calculated and due as outlined above. 

 

	D.	Interest penalties arising out of the application of this Article that are $100 or less from any party shall be waived unless there is a pattern of late payments consisting of three or more items over the course of any
12-month period. 

 ARTICLE XVI 

ANNUITIES AT THE COMPANY’S OPTION 
  

	A.	Whenever the Company is required, or elects, to purchase an annuity or to negotiate a structured settlement, either in satisfaction of a judgment or in an out-of-court settlement or otherwise, the cost of the annuity or
the structured settlement, as the case may be, shall be deemed part of the Company’s Ultimate Net Loss. 

  

	B.	The terms “annuity” or “structured settlement” shall be understood to mean any insurance policy, lump sum payment, agreement or device of whatever nature resulting in the payment of a lump sum by the
Company in settlement of any or all future liabilities which may attach to it as a result of an occurrence. 

  

	C.	In the event the Company purchases an annuity which inures in whole or in part to the benefit of the Reinsurer, it is understood that the liability of the Reinsurer is not released thereby. In the event the Company is
required to provide benefits not provided by the annuity for whatever reason, the Reinsurer shall pay its share of any loss. 

  
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 ARTICLE XVII 

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

SUBROGATION 
 The Reinsurer shall be credited with
subrogation recoveries (i.e., reimbursement obtained or recovery made by the Company, less Loss Adjustment Expense incurred in obtaining such reimbursement or making such recovery) on account of claims and settlements involving reinsurance
hereunder. Subrogation recoveries 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, at its sole option and discretion, may enforce its rights to subrogation relating to any loss, a part of which loss was sustained by the Reinsurer, and may prosecute all claims arising out of such rights. 

ARTICLE XIX 
 ERRORS AND
OMISSIONS 
 Any inadvertent delay, omission or error shall not be held to relieve either party hereto from any liability which would attach to it
hereunder if such delay, omission or error had not been made, provided such omission or error is rectified upon discovery. Nothing contained in this Article shall be held to override the specific loss reporting deadline of the SUNSET AND COMMUTATION
ARTICLE. 
 ARTICLE XX 

OFFSET 
 The Company and the Reinsurer may offset
any balance or amount due from one party to the other under this Contract or any other contract heretofore or hereafter entered into between the Company and the Reinsurer, whether acting as assuming reinsurer or ceding company. The party asserting
the right of offset may exercise such right any time whether the balances due are on account of premiums or losses or otherwise. 

  
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 ARTICLE XXI 

CURRENCY 
  

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

 In consideration of the terms under which this Contract 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, the District of Columbia or Canada. 

ARTICLE XXIII 
 FEDERAL
EXCISE TAX 
 (Applicable to those subscribing reinsurers who are domiciled outside the United States of America, excepting subscribing reinsurers
exempt from Federal Excise Tax.) 
  

	A.	The subscribing 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 subscribing 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 XXIV 

FOREIGN ACCOUNT TAX COMPLIANCE ACT (“FATCA”) 
  

	A.	The Reinsurer hereby acknowledges the requirements of Sections 1471-1474 U.S. Internal Revenue Code of 1986, as amended, and the Treasury regulations and other guidance issued from time to time thereunder
(“FATCA”) and the obligation to provide to the Company and the intermediary. a valid Internal Revenue Service (“IRS”) Form W8-BEN-E, W-9 or other documentation meeting the requirements of the FATCA regulations to establish they
are not subject to any withholding requirement pursuant to FATCA (the “Required Documentation”). 

  
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	B	The Reinsurer shall notify the Company and the intermediary in writing (by electronic mail, certified mail or overnight mail using a nationally recognized overnight delivery service) in the event the Reinsurer is not
compliant with FATCA. If the Reinsurer has not provided the Company and the intermediary with the Required Documentation thirty (30) days prior to any premium due date, or becomes non-compliant with FATCA at any later date, the Withholding
Agent [as defined in U.S. Treasury Regulation Section 1.1471-1(b)(147)] shall withhold thirty percent (30%) of any premium payment to the Reinsurer under this Contract and shall promptly notify the Reinsurer of such withholding
(“Withholding”). The Reinsurer hereby agrees to such Withholding. 

  

	C.	In the event the Reinsurer is subject to Withholding as set forth under FATCA, the Reinsurer continues to remain fully liable for all of its obligations under this Contract. The Withholding under paragraph B above does
not constitute a breach of contract, any premium payment condition, warranty or other clause of this Contract. Reinsurer(s) subject to Withholding may not terminate, cancel, revoke or restrict this Contract, may not terminate, cancel, revoke or
restrict coverage under this Contract in any manner and may not deny, refuse, restrict or delay payment of any claim under this Contract or invoke any interest, penalty or other late payment provision hereunder, based on the Withholding.
Reinsurer(s) subject to Withholding shall be liable under this Contract as if no Withholding had been made. 

  

	D.	Amounts deducted or withheld as Withholding are not subject to offset. Offset rights, if any, under this Contract are hereby amended in accordance with the terms of this Article. 

 

	E.	The Reinsurer shall indemnify the Company and its agents for any and all liability, expense, interest or penalty the Company and its agents incur, based upon, arising from or in connection with (i) any inaccurate
or invalid Required Documentation; or (ii) any violation by the Reinsurer of FATCA. Such indemnity shall survive the expiration or termination of this Contract. 

ARTICLE XXV 
 RESERVES AND
FUNDING 
  

	A.	A subscribing reinsurer will provide funding under the terms of this Article only if the Company will be denied statutory credit for reinsurance ceded to that subscribing reinsurer pursuant to the credit for reinsurance
law or regulations in any applicable jurisdiction. In the event any of the provisions of this Article conflict with or otherwise fail to satisfy the requirements of the appropriate credit for reinsurance statute or regulation, this Article will be
deemed amended to conform to the appropriate statute or regulation; the intent of this Article being that the Company will be permitted to realize full credit for the reinsurance ceded to the Reinsurer under this Contract. 

 

	B.	 As regards Policies or bonds issued by the Company coming within the scope of this Contract, the Company agrees that when it shall file with the
insurance regulatory authority 

  
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or set up on its books reserves for losses covered hereunder which it shall be required by law to set up, it will forward to the subscribing reinsurer a statement showing the proportion of such
reserves which is applicable to the subscribing reinsurer. The subscribing reinsurer hereby agrees to fund such reserves in respect of known outstanding losses that have been reported to the subscribing reinsurer and allocated Loss Adjustment
Expense relating thereto, losses and allocated Loss Adjustment Expense paid by the Company but not recovered from the subscribing reinsurer, plus reserves for losses incurred but not reported, as shown in the statement prepared by the Company
(hereinafter referred to as “subscribing reinsurer’s obligations”) by funds withheld, cash advances or a Letter of Credit. The subscribing reinsurer shall have the option of determining the method of funding provided it is acceptable
to the Company and to the insurance regulatory authorities having jurisdiction over the Company’s reserves. 

  

	C.	When funding by a Letter of Credit, the subscribing reinsurer agrees to apply for and secure timely delivery to the Company of a clean, irrevocable and unconditional Letter of Credit issued by a bank and containing
provisions acceptable to the insurance regulatory authorities having jurisdiction over the Company’s reserves in an amount equal to the subscribing reinsurer’s proportion of said reserves. Such Letter of Credit shall be issued for a period
of not less than one year, and shall be automatically extended for one year from its date of expiration or any future expiration date unless 30 days (60 days where required by insurance regulatory authorities) prior to any expiration date
the issuing bank shall notify the Company by certified or registered mail that the issuing bank elects not to consider the Letter of Credit extended for any additional period. 

 

	D.	The subscribing reinsurer and Company agree that the Letters of Credit provided by the subscribing reinsurer pursuant to the provisions of this Contract may be drawn upon at any time, notwithstanding any other provision
of this Contract, and be utilized by the Company or any successor, by operation of law, of the Company including, without limitation, any liquidator, rehabilitator, receiver or conservator of the Company for the following purposes, unless otherwise
provided for in a separate Trust Agreement: 

  

	 	1.	To reimburse the Company for the subscribing reinsurer’s obligations, the payment of which is due under the terms of this Contract and which has not been otherwise paid; 

 

	 	2.	To make refund of any sum which is in excess of the actual amount required to pay the subscribing reinsurer’s obligations under this Contract; 

 

	 	3.	To fund an account with the Company for the subscribing reinsurer’s obligations. Such cash deposit shall be held in an interest bearing account separate from the Company’s other assets, and interest thereon
not in excess of the prime rate shall accrue to the benefit of the subscribing reinsurer; 

  

	 	4.	To pay the subscribing reinsurer’s share of any other amounts the Company claims are due under this Contract. 

In the event the amount drawn by the Company on any Letter of Credit is in excess of the actual amount required for subparagraph 1 or 3,
or in the case of subparagraph 4, the actual amount determined to be due, the Company shall promptly return to the subscribing reinsurer the excess amount so drawn. All of the foregoing shall be applied without diminution because of insolvency
on the part of the Company or the subscribing reinsurer. 

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

  

	F.	At annual intervals, or more frequently as agreed but never more frequently than quarterly, the Company shall prepare a specific statement of the subscribing reinsurer’s obligations, for the sole purpose of
amending the Letter of Credit, in the following manner: 

  

	 	1.	If the statement shows that the subscribing reinsurer’s obligations exceed the balance of credit as of the statement date, the subscribing reinsurer shall, within 30 days after receipt of notice of such
excess, secure delivery to the Company of an amendment to the Letter of Credit increasing the amount of credit by the amount of such difference. 

  

	 	2.	If, however, the statement shows that the subscribing reinsurer’s obligations are less than the balance of credit as of the statement date, the Company shall, within 30 days after receipt of written request
from the subscribing reinsurer, release such excess credit by agreeing to secure an amendment to the Letter of Credit reducing the amount of credit available by the amount of such excess credit. 

 

	G.	Should the subscribing reinsurer be in breach of its obligations under this Article, notwithstanding anything to the contrary elsewhere in this Contract, the Company may seek relief in respect of said breach from any
court having competent jurisdiction of the parties hereto. 

 ARTICLE XXVI 

NET RETAINED LINES 
  

	A.	This Contract 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 Contract), and in calculating
the amount of any loss hereunder and also in computing the amount or amounts in excess of which this Contract 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. 

  
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 ARTICLE XXVII 

THIRD PARTY RIGHTS 
 This Contract is solely
between the Company and the Reinsurer, and in no instance shall any other party have any rights under this Contract except as expressly provided otherwise in the INSOLVENCY ARTICLE. 

ARTICLE XXVIII 
 SEVERABILITY

 If any provision of this Contract shall be rendered illegal or unenforceable by the laws or regulations 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 Contract or the enforceability of such provision in any other jurisdiction. 

ARTICLE XXIX 
 GOVERNING LAW

 This Contract shall be governed as to performance, administration and interpretation by the laws of the State of Nebraska, exclusive of that
state’s rules with respect to conflicts of law, except as to rules with respect to credit for reinsurance in which case the applicable rules of all states shall apply. 

ARTICLE XXX 
 INSPECTION OF
RECORDS 
  

	A.	The Reinsurer or its designated representative(s) approved by the Company, upon providing reasonable advance notice to the Company, shall have access at the offices of the Company or at a location to be mutually agreed,
at a time to be mutually agreed, to inspect the Company’s underwriting, accounting, or claim files pertaining to the subject matter of this Contract, other than proprietary information or privileged communications. The Company shall determine
the manner in which files shall be accessed by the Reinsurer. The Reinsurer may, at its own expense, reasonably request copies of such files and agrees to pay the Company’s reasonable costs incurred in procuring such copies. 

 

	B.	If any undisputed amounts are overdue from the Reinsurer to the Company, the Reinsurer shall have access to such records only upon payment of all such overdue amounts. 

 

	C.	If the Reinsurer makes any inspection of the Company’s books and records involving specific claims under this Contract and, as a result of the inspection the claim is contested or disputed, the Reinsurer shall
provide the Company, at the Company’s request, a summary of any reports, other than proprietary information or privileged communications, completed by the Reinsurer’s personnel or by third parties on behalf of the Reinsurer outlining the
reasons for contesting or disputing the subject claim. 

  
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 ARTICLE XXXI 

CONFIDENTIALITY 
  

	A.	The Reinsurer hereby acknowledges that the documents, information, and data provided to the Reinsurer by the Company, whether directly or through an authorized agent, in connection with the placement and execution of
this Contract (“Confidential Information”) are proprietary and confidential to the Company. 

  

	B.	Absent the written consent of the Company, the Reinsurer will not disclose any Confidential Information to any third parties, except when: 

 

	 	1.	The disclosure is to professional advisors or to authorized agents of the Reinsurer performing underwriting, claim handling, pricing, placement and/or evaluation services for the Reinsurer; or 

 

	 	2.	The Confidential Information is publicly known or has become publicly known through no unauthorized act of the Reinsurer; or 

  

	 	3.	Required by retrocessionaires subject to the business ceded to this Contract; or 

  

	 	4.	Required by state regulators performing an audit of the Reinsurer’s records and/or financial condition; or 

  

	 	5.	Required by auditors performing an audit of the Reinsurer’s records in the normal course of business. 

  

	C.	Further, the Reinsurer agrees not to use any Confidential Information for any purpose not permitted by this Contract or not related to the performance of their obligations or enforcement of their rights under this
Contract. 

  

	D.	Notwithstanding the above, in the event that the Reinsurer is required by court order, other legal process, or any regulatory authority to release or disclose any or all of the Confidential Information, the Reinsurer
agrees to provide the Company by written or electronic mail, reasonable advance notice of same prior to such release or disclosure and to use their reasonable best efforts to assist the Company in maintaining the confidentiality provided for in this
Article. 

  

	E.	The provisions of this Article will extend to the officers, directors, shareholders, and employees of the Reinsurer and its affiliates, who have received Confidential Information in accordance with this Contract and
will be binding upon their successors and assigns. 

  
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 ARTICLE XXXII 

SUNSET AND COMMUTATION 
  

	A.	Ten years after the expiration of this Contract, the Company shall advise the Reinsurer of any Loss Occurrences attaching to this Contract which have not been finally settled and which may result in a claim by the
Company under this Contract. No liability shall attach hereunder for any claim or claims not reported to the Reinsurer within this ten year period. If a loss arising out of a Loss Occurrence is reported during this period, all losses arising out of
the same Loss Occurrence shall be deemed reported under this paragraph regardless of when notification of loss is provided. 

  

	B.	If both parties agree to commute the unsettled losses subject to the Contract, then the Reinsurer’s liability for all such unsettled losses shall then be commuted. 

 

	C.	It is understood that commutation of all such losses shall be made using tabular reserving methods. For each loss, the nominal ultimate value of the Company’s Ultimate Net Loss shall be established by projecting
out future medical and indemnity payments and loss expenses by year based on appropriate trends and escalations applied to annual cost estimates. The Contract limit and retention (where applicable) shall then be applied to the nominal ultimate value
of the Company’s Ultimate Net Loss to determine the nominal ultimate Contract loss. Mortality factors and discount factors shall then be applied by year to the nominal ultimate Contract loss. The discounted, mortality adjusted projected annual
loss payments shall be summed to determine the present value (“commutation price”) of the ultimate Contract loss. The medical escalation, discount and mortality factors are described in paragraph C. 

 

	D.	The following factors shall be utilized in establishing the commutation price: 

  

	 	1.	Medical Escalation Rate 

 The medical escalation rate shall be a reasonable estimate of future
medical inflation. 
  

	 	2.	Discount Rate 

 The discount rate shall be the annualized 10-year US Treasury Bill rate at the
Valuation Date. 
  

	 	3.	Mortality Tables 

 Mortality factors shall be based on the most recent mortality table at the
Valuation Date from the “Vital Statistics of the United States” as published by the US Department of Health and Human Services, Center for Disease Control and Prevention. Factors for extension beyond age 85 shall also be included. 

 

	 	4.	Impairment 

 Impairment factors shall be based on the individual claim characteristics. 

  
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 Any other method of calculating the commutation price of one or more losses subject to this
Contract may be used as mutually agreed between the Company and the Reinsurer. 
  

	E.	If the Company and the Reinsurer cannot agree on a commutation value, the effort can be abandoned. Alternatively, the Company and the Reinsurer may mutually agree to settle any difference using a panel of three
actuaries, one to be chosen by each party and the third by the two so chosen. If either party refuses or neglects to appoint an actuary within 30 days, the other party may appoint two actuaries. If the two actuaries fail to agree on the
selection of a third actuary within 30 days of their appointment, each of them shall name two, of whom the other shall decline one and the decision shall be made by drawing lots. All the actuaries shall be regularly engaged in the valuation of
Workers’ Compensation claims and shall be Fellows of the Casualty Actuarial Society or members of the American Academy of Actuaries. All of the actuaries shall be independent of either party to this Contract. 

 

	F.	The settlement agreed upon by a majority of the panel of actuaries shall be final and binding on both parties and set forth in a sworn written document expressing their professional opinion that said value is fair for
the complete mutual release of all liabilities in respect of such reserves. 

  

	G.	The Reinsurer’s commutation payment shall be due within 7 days following the date the Company and the Reinsurer agree to the commutation price. Such payment by the Reinsurer shall constitute both a complete release
of the Reinsurer of its liability for all losses, known or unknown, under this Contract, and a complete release of the Company of its liabilities and obligations, known or unknown, under this Contract. 

 

	H.	This Article shall survive the expiration of this Contract. 

 ARTICLE XXXIII 

INSOLVENCY 
  

	A.	In the event of the insolvency of the Company, this reinsurance shall be payable directly to the Company or to its liquidator, receiver, conservator or statutory successor, with reasonable provision for verification, 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 proportionate share of the benefit which may accrue to the
Company solely as a result of the defense undertaken by the Reinsurer. 

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

  

	C.	It is further agreed that, in the event of the insolvency of the Company, the reinsurance under this Contract shall be payable directly by the Reinsurer to the Company or its liquidator, receiver, conservator, or
statutory successor, except as provided by Section 4118(a) of the New York Insurance Law or except 1) where this Contract 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 payee under such Policies and in substitution for the obligations of the
Company to such payees. 

  

	D.	In the event of the insolvency of any company or companies listed in the designation of “Company” under this Contract, this Article shall apply only to the insolvent company or companies. 

ARTICLE XXXIV 
 ARBITRATION

  

	A.	As a condition precedent to any right of action hereunder, any irreconcilable dispute arising out of the interpretation, performance or breach of this Contract, including the formation or validity thereof, whether
arising before or after the expiry or termination of the Contract, shall be submitted for decision to a panel of three arbitrators. Notice requesting arbitration will be in writing and sent by certified mail, return receipt requested, or such
reputable courier service as is capable of returning proof of receipt of such notice by the recipient to the party demanding arbitration. 

  

	B.	The Company shall have the option to either litigate or arbitrate where: 

  

	 	1.	The Reinsurer makes any allegation of misrepresentation, non-disclosure, concealment, fraud or bad faith; or 

  

	 	2.	The Reinsurer experiences any of the circumstances set forth in subparagraphs 1 through 7 of paragraph A of the SPECIAL TERMINATION ARTICLE. 

 

	C.	One arbitrator shall be appointed by each party. If either party fails to appoint its arbitrator within 30 days after being requested to do so by the other party, the latter, after 10 days notice by certified
mail or reputable courier as provided above of its intention to do so, may appoint the second arbitrator. 

  

	D.	 The two arbitrators shall, before instituting the hearing, appoint an impartial third arbitrator who shall preside at the hearing. Should the two
arbitrators fail to choose the third 

  
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arbitrator within 30 days of the appointment of the second arbitrator, the parties shall appoint the third arbitrator pursuant to the AIDA Reinsurance and Insurance Arbitration Society –
U.S. (ARIAS) Umpire Selection Procedure. All arbitrators shall be disinterested active or former senior executives of insurance or reinsurance companies or Underwriters at Lloyd’s, London. 

 

	E.	Within 30 days after notice of appointment of all arbitrators, the panel shall meet and determine timely periods for briefs, discovery procedures and schedules for hearings. The panel shall be relieved of all
judicial formality and shall not be bound by the strict rules of procedure and evidence. Unless the panel agrees otherwise, arbitration shall take place in Omaha, Nebraska but the venue may be changed when deemed by the panel to be in the best
interest of the arbitration proceeding. Insofar as the arbitration panel looks to substantive law, it shall consider the law of the State of Nebraska. The decision of any two arbitrators when rendered in writing shall be final and binding. The panel
is empowered to grant interim relief as it may deem appropriate. 

  

	F.	In the event an arbitrator is unable to serve due to death, disability or other incapacity, a replacement arbitrator shall be chosen in accordance with the procedures set forth in this Article for the original selection
of the arbitrator appointed and the newly constituted panel shall take all necessary and/or reasonable measures to continue the arbitration proceedings without additional delay. 

 

	G.	The panel shall make its decision considering the custom and practice of the applicable insurance and reinsurance business as promptly as possible following the termination of the hearings. Judgment upon the award may
be entered in any court having jurisdiction thereof. 

  

	H.	If more than one subscribing reinsurer is involved in arbitration where there are common questions of law or fact and a possibility of conflicting awards or inconsistent results, all such subscribing 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 subscribing reinsurers constituting the one party; provided, however, that nothing therein shall impair the rights of such
subscribing reinsurers to assert several, rather than joint defenses or claims, nor be construed as changing the liability of the subscribing reinsurers under the terms of this Contract from several to joint. 

 

	I.	Each party shall bear the expense of its own arbitrator and shall jointly and equally bear with the other party the cost of the third arbitrator. The remaining costs of the arbitration shall be allocated by the panel.
The panel may, at its discretion, award such further costs and expenses as it considers appropriate, including but not limited to attorneys fees, to the extent permitted by law. However, the panel may not award any Exemplary or Punitive Damages and
Enhanced Compensatory Damages. 

  
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 ARTICLE XXXV 

EXPEDITED ARBITRATION 
  

	A.	Notwithstanding the provisions of the ARBITRATION ARTICLE, in the event an amount in dispute hereunder is $500,000 or less, the Company may elect to require an expedited arbitration process with the use of a single
arbitrator. The arbitrator will be chosen in accordance with the procedures for selecting an arbitrator in force on the date the arbitration is demanded, established by the AIDA Reinsurance and Insurance Arbitration Society – U.S. (ARIAS).

  

	B.	Each party’s case will be submitted to the arbitrator within 100 days of the date of determination of the arbitrator. Discovery will be limited to exchanging only those documents directly relating to the issue in
dispute, subject to a limit of two discovery depositions from each party, unless otherwise authorized by the arbitrator upon a showing of good cause. 

  

	C.	Within 120 days of the date of determination of the arbitrator, the hearing will be completed and a written award will be issued by the arbitrator. The arbitrator will have all the powers conferred on the arbitration
panel as provided in the ARBITRATION ARTICLE, and said Article will apply to all matters not specifically addressed above. 

ARTICLE XXXVI 
 SERVICE OF
SUIT 
 (This Article is 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. This Article is not intended to conflict with or override the obligation of the parties to arbitrate their disputes in accordance
with the ARBITRATION ARTICLE.) 
  

	A.	In the event of the failure of the Reinsurer to perform its obligations under this Contract, the Reinsurer, at the request of the Company, shall 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 selected, whether such court is the one
originally chosen by the Company and accepted by the Reinsurer or is determined by removal, transfer, or otherwise, as provided for above, shall comply with all requirements necessary to give said court jurisdiction and, in any suit instituted
against it upon this Contract, and shall abide by the final decision of such court or of any appellate court in the event of an appeal. The validity and/or enforceability of any arbitration award or judgment obtained in the United States shall
not be contested by the Reinsurer in any jurisdiction outside of the United States. 

  
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	B.	Service of process in such suit may be made upon the law firm of Mendes and Mount, 750 Seventh Avenue, New York, NY 10019, or another party specifically designated by the Reinsurer in its Interests and Liabilities
Agreement attached hereto.

  

	C.	Further, pursuant to any statute of any state, territory or district of the United States that makes provision therefor, the Reinsurer hereby designates the Superintendent, Commissioner or Director of Insurance, or
other officer specified for that purpose in the statute, or his/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 proceedings instituted by or on behalf of the
Company or any beneficiary hereunder arising out of this Contract, and hereby designates the above-named as the person to whom the said officer is authorized to mail such process or a true copy thereof. 

 

	D.	The individual named in Paragraph C shall be deemed the Reinsurer’s agent for the service of process: 

  

	 	1.	where the address designated in, or pursuant to paragraph B is invalid; or 

  

	 	2.	to the extent necessary to bring this Contract into conformity with the applicable law of a state with jurisdiction over the Company. 

ARTICLE XXXVII 
 ENTIRE
AGREEMENT 
 This Contract shall constitute the entire agreement between the parties with respect to the business being reinsured hereunder. There
are no understandings between the parties other than as expressed in this Contract. Any change or modification to this Contract shall be null and void unless made by amendment to this Contract and signed by both parties. This Article shall not be
construed as limiting in any way the admissibility in the context of an arbitration or any other legal proceeding, evidence regarding the formation, interpretation, purpose or intent of this Contract. 

ARTICLE XXXVIII 
 MODE OF
EXECUTION 
 This Contract may be executed either by an original written ink signature of paper documents, by an exchange of facsimile copies showing
the original written ink signature of paper documents, or by electronic signature by either party employing appropriate software technology as to satisfy the parties at the time of execution that the version of the document agreed to by each party
shall always be capable of authentication and satisfy the same rules of evidence as written signatures. The use of any one or a combination of these methods of execution shall constitute a legally binding and valid signing of this Contract. This
Contract may be executed in one or more counterparts, each of which, when duly executed, shall be deemed an original. 

  
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 ARTICLE XXXIX 

INTERMEDIARY 
 Willis Re Inc. is hereby recognized
as the intermediary negotiating this Contract and through whom all communications, including but not limited to accounts, claim information, funds and inquiries, to the Company or the Reinsurer shall be transmitted. Payments by the Company to Willis
Re Inc. shall be deemed to constitute payment to the Reinsurer and payments by the Reinsurer to Willis Re Inc. 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 Contract as of the date specified below: 

Signed this      day of             , 20    . 

AMERICAN INTERSTATE INSURANCE COMPANY 
 SILVER OAK
CASUALTY, INC. 
 AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS 
  

			
	By		  

		
	Printed Name		  

		
	Title		  

  
 27 

Table of Contents

 NUCLEAR INCIDENT EXCLUSION CLAUSE - LIABILITY - REINSURANCE - U.S.A. 

(1) This reinsurance does not cover any loss or liability accruing to the Reassured as a member of, or subscriber to, any association of insurers or
reinsurers formed for the purpose of covering nuclear energy risks or as a direct or indirect reinsurer of any such member, subscriber or association. 

(2) Without in any way restricting the operation of paragraph (1) of this Clause it is understood and agreed that for all purposes of this reinsurance
all the original policies of the Reassured (new, renewal and replacement) of the classes specified in Clause II of this paragraph (2) from the time specified in Clause III in this paragraph (2) shall be deemed to include the following
provision (specified as the Limited Exclusion Provision): 
 Limited Exclusion Provision.* 

 

	I.	It is agreed that the policy does not apply under any liability coverage, 

 to
        (injury, sickness, disease, death or destruction, 

            (bodily injury or property damage 

with respect to which an insured under the policy is also an insured under a nuclear energy liability policy issued by Nuclear Energy Liability
Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability. 

 

	II.	Family Automobile Policies (liability only), Special Automobile Policies (private passenger automobiles, liability only), Farmers Comprehensive Personal Liability Policies (liability only), Comprehensive Personal
Liability Policies (liability only) or policies of a similar nature; and the liability portion of combination forms related to the four classes of policies stated above, such as the Comprehensive Dwelling Policy and the applicable types of
Homeowners Policies. 

  

	III.	The inception dates and thereafter of all original policies as described in II above, whether new, renewal or replacement, being policies which either 

(a) become effective on or after 1st May, 1960, or 

(b) become effective before that date and contain the Limited Exclusion Provision set out above; provided this paragraph
(2) shall not be applicable to Family Automobile Policies, Special Automobile Policies, or policies or combination policies of a similar nature, issued by the Reassured on New York risks, until 90 days following approval of the Limited
Exclusion Provision by the Governmental Authority having jurisdiction thereof. 
 (3) Except for those classes of policies specified in Clause II of
paragraph (2) and without in any way restricting the operation of paragraph (1) of this Clause, it is understood and agreed that for all purposes of this reinsurance the original liability policies of the Reassured (new, renewal and
replacement) affording the following coverages: 
 Owners, Landlords and Tenants Liability, Contractual Liability, Elevator Liability, Owners
or Contractors (including railroad) Protective Liability, Manufacturers and Contractors Liability, Product Liability, Professional and Malpractice Liability, Storekeepers Liability, Garage Liability, Automobile Liability (including Massachusetts
Motor Vehicle or Garage Liability) 
 shall be deemed to include, with respect to such coverages, from the time specified in Clause V of this paragraph (3),
the following provision (specified as the Broad Exclusion Provision): 
 Broad Exclusion Provision.* 

It is agreed that the policy does not apply: 
  

	I.	Under any Liability Coverage, to (injury, sickness, disease, death or destruction  

                        
                                  (bodily injury or property damage 

(a) with respect to which an insured under the policy is also an insured under a nuclear energy liability policy issued by Nuclear Energy
Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability; or 

(b) resulting from the hazardous properties of nuclear material and with respect to which (1) any person or organization is required to
maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, or (2) the insured is, or had this policy not been issued would be, entitled to indemnity from the United States of America, or any agency
thereof, under any agreement entered into by the United States of America, or any agency thereof, with any person or organization. 
  

	II.	Under any Medical Payments Coverage, or under any Supplementary Payments Provision 

 relating to
        (immediate medical or surgical relief,  

                 (first aid, 

     to expenses incurred with respect 

     to        (bodily injury, sickness, disease or death  

                 (bodily injury 

resulting from the hazardous properties of nuclear material and arising out of the operation of a nuclear facility by any person or
organization. 
  

	III.	Under any Liability Coverage to (injury, sickness, disease, death or destruction  

                        
                                  (bodily injury or property damage 

resulting from the hazardous properties of nuclear material, if 

(a) the nuclear material (1) is at any nuclear facility owned by, or operated by or on behalf of, an insured or (2) has been
discharged or dispersed therefrom; 
 (b) the nuclear material is contained in spent fuel or waste at any time possessed, handled, used,
processed, stored, transported or disposed of by or on behalf of an insured; or 

  
 1 

Table of Contents

 (c)            the
        (injury, sickness, disease, death or destruction  

           (bodily injury or property damages 

arises out of the furnishing by an insured of services, materials, parts or equipment in connection with the planning, construction, maintenance, operation or
use of any nuclear facility, but if such facility is located within the United States of America, its territories, or possessions or Canada, this exclusion (c) applies only to 

           (injury to or destruction of property at such nuclear facility 

           (property damage to such nuclear facility and any property thereat. 

 

	IV.	As used in this endorsement: 

 “Hazardous properties” include radioactive,
toxic or explosive properties; “nuclear material” means source material, special nuclear material or byproduct material; “source material,” “special nuclear material,” and “byproduct
material” have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof; “spent fuel” means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation
in a nuclear reactor; “waste” means any waste material (1) containing byproduct material and (2) resulting from the operation by any person or organization of any nuclear facility included within the definition of nuclear
facility under paragraph (a) or (b) thereof; “nuclear facility” means 
 (a) any nuclear reactor, 

(b) any equipment or device designed or used for (1) separating the isotopes of uranium or plutonium, (2) processing or utilizing
spent fuel, or (3) handling, processing or packaging waste, 
 (c) any equipment or device used for the processing, fabricating or
alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or
any combination thereof, or more than 250 grams of uranium 235, 
 (d) any structure, basin, excavation, premises or place prepared or used
for the storage or disposal of waste, 
 and includes the site on which any of the foregoing is located, all operations conducted on such
site and all premises used for such operations; “nuclear reactor” means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable material; 

           (With respect to injury to or destruction of property, the word
“injury” or “destruction” 
            (“property
damage” includes all forms of radioactive contamination of property 

           (includes all forms of radioactive contamination of property. 

 

	V.	The inception dates and thereafter of all original policies affording coverages specified in this paragraph (3), whether new, renewal or replacement, being policies which become effective on or after 1st May, 1960,
provided this paragraph (3) shall not be applicable to 

 (i) Garage and Automobile Policies issued by the Reassured on
New York risks, or 
 (ii) statutory liability insurance required under Chapter 90, General Laws of Massachusetts, 

until 90 days following approval of the Broad Exclusion Provision by the Governmental Authority having jurisdiction thereof. 

(4) Without in any way restricting the operation of paragraph (1) of this Clause, it is understood and agreed that paragraphs (2) and (3) above
are not applicable to original liability policies of the Reassured in Canada and that with respect to such policies this Clause shall be deemed to include the Nuclear Energy Liability Exclusion Provisions adopted by the Canadian Underwriters’
Association of the Independent Insurance Conference of Canada. 
  

	*	NOTE: The words printed in italics in the Limited Exclusion Provision and in the Broad Exclusion Provision shall apply only in relation to original liability policies which include a Limited Exclusion Provision or a
Broad Exclusion Provision containing those words. 

 21/9/67 

N.M.A. 1590 
 BRMA 35A 

  
 2 

Table of Contents

 INTERESTS AND LIABILITIES AGREEMENT 

(the “Agreement”) 
 of

 UNDERWRITERS AT LLOYD’S, LONDON 

AS SET FORTH IN THE SIGNING PAGE(S) ATTACHED HERETO 

(the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
CATASTROPHE EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

SILVER OAK CASUALTY, INC. 

both of Omaha, Nebraska 

and 
 AMERICAN INTERSTATE
INSURANCE COMPANY OF TEXAS 
 Austin, Texas 

and 
 any other insurance
companies which are now or hereafter come under the ownership, 
 control or management of Amerisafe, Inc. 

(collectively the “Company”) 
 The
Subscribing Reinsurer shall have a share in the interests and liabilities of the “Reinsurer” as set forth in the Contract attached hereto and executed by the Company. The Subscribing Reinsurer’s percentage share shall equal the sum of
the final signed lines percentage share(s) as executed on the attached signing page(s) for Lloyd’s Underwriters. 
 This Agreement shall commence at
12:01 a.m., Standard Time, January 1, 2015 and shall continue in force until 12:01 a.m., Standard Time, January 1, 2016. 
 The share of the
Subscribing Reinsurer in the interests and liabilities of the “Reinsurer” shall be several and not joint with the share of any other subscribing reinsurer. In no event shall the Subscribing Reinsurer participate in the interests and
liabilities of the other subscribing reinsurers. 
 IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized representative has
executed this Agreement per the attached signing page(s). 
  
 

 

Table of Contents

 INTERESTS AND LIABILITIES AGREEMENT 

(the “Agreement”) 
 of

 HOUSTON CASUALTY COMPANY 

(the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
CATASTROPHE EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

SILVER OAK CASUALTY, INC. 

both of Omaha, Nebraska 

and 
 AMERICAN INTERSTATE
INSURANCE COMPANY OF TEXAS 
 Austin, Texas 

and 
 any other insurance
companies which are now or hereafter come under the ownership, 
 control or management of Amerisafe, Inc. 

(collectively the “Company”) 
 The
Subscribing Reinsurer shall have a 10.00% share in the interests and liabilities of the “Reinsurer” as set forth in the Contract attached hereto and executed by the Company. 

This Agreement shall commence at 12:01 a.m., Standard Time, January 1, 2015 and shall continue in force until 12:01 a.m., Standard Time, January 1,
2016. 
 The share of the Subscribing Reinsurer in the interests and liabilities of the “Reinsurer” shall be several and not joint with the share
of any other subscribing reinsurer. In no event shall the Subscribing Reinsurer participate in the interests and liabilities of the other subscribing reinsurers. 

IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized representative has executed this Agreement as of the date specified below:

 Signed this 31st day of December, 2014. 

 

			
	HOUSTON CASUALTY COMPANY
		
	By		 /s/ STEPHEN KEMPTON

		
	Print Name		 STEPHEN KEMPTON

		
	Title		 ACCIDENT AND HEALTH UNDERWRITER

Table of Contents

					
	 UMR
 Reinsured

Type
		 : B080110074N15 
 : American Interstate
Insurance Company
 : Casualty Catastrophe Excess of Loss
		

 THIS INFORMATION SECTION LISTS INFORMATION MADE AVAILABLE TO REINSURERS FOR ASSESSMENT OF THE RISK. IT DOES NOT INCLUDE
CONTRACTUAL TERMS AND CONDITIONS OF COVER. 
  

			
	ESTIMATED PREMIUM INCOME:		$381,600,000

  
 NB / 22-12-14 

 Willis Limited, Lloyd’s broker, authorised and regulated by the Financial Conduct
Authority. 
 Registered office: 51 Lime Street, London EC3M 7DQ. Registered number 181116 England and Wales 

Table of Contents

					
	 UMR
 Reinsured

Type
		 : B080110074N15
 : American Interstate
Insurance Company
 : Casualty Catastrophe Excess of Loss
		 

  

			
	 REINSURERS

LIABILITY:
		Reinsurers Liability Clause LMA3333
			  
 Reinsurer’s liability several not joint.

 
 The liability of a Reinsurer under this contract is several and not joint with other
Reinsurers party to this contract. A Reinsurer is liable only for the proportion of liability it has underwritten. A Reinsurer is not jointly liable for the proportion of liability underwritten by any other Reinsurer. Nor is a Reinsurer otherwise
responsible for any liability of any other Reinsurer that may underwrite this contract.
  

The proportion of liability under this contract underwritten by a Reinsurer (or, in the case of a Lloyd’s syndicate, the total of the proportions
underwritten by all the members of the syndicate taken together) is shown next to its stamp. This is subject always to the provision concerning “signing” below.
  

In the case of a Lloyd’s syndicate, each member of the syndicate (rather than the syndicate itself) is a Reinsurer. Each member has underwritten a
proportion of the total shown for the syndicate (that total itself being the total of the proportions underwritten by all the members of the syndicate taken together). The liability of each member of the syndicate is several and not joint with other
members. A member is liable only for that member’s proportion. A member is not jointly liable for any other member’s proportion. Nor is any member otherwise responsible for any liability of any other Reinsurer that may underwrite this
contract. The business address of each member is Lloyd’s, One Lime Street, London EC3M 7HA. The identity of each member of a Lloyd’s syndicate and their respective proportion may be obtained by writing to Market Services, Lloyd’s, at
the above address.
  
 Proportion of liability

 
 Unless there is “signing” (see below), the proportion of liability under this
contract underwritten by each Reinsurer (or, in the case of a Lloyd’s syndicate, the total of the proportions underwritten by all the members of the syndicate taken together) is shown next to its stamp and is referred to as its “written
line”.
  
 Where this contract permits, written lines, or certain written lines, may
be adjusted (“signed”). In that case a schedule is to be appended to this contract to show the definitive proportion of liability under this contract underwritten by each Reinsurer (or, in the case of a Lloyd’s syndicate, the total of
the proportions underwritten by all the members of the syndicate taken together). A definitive proportion (or, in the case of a Lloyd’s syndicate, the total of the proportions underwritten by all the members of a Lloyd’s syndicate taken
together) is referred to as a “signed line”. The signed lines shown in the schedule will prevail over the written lines unless a proven error in calculation has occurred.

 
 NB / 22-12-14 

 Willis Limited, Lloyd’s broker, authorised and regulated by the Financial Conduct
Authority. 
 Registered office: 51 Lime Street, London EC3M 7DQ. Registered number 181116 England and Wales 

Table of Contents

					
	 UMR
 Reinsured

Type
		 : B080110074N15
 : American Interstate
Insurance Company
 : Casualty Catastrophe Excess of Loss
		 

  

			
			Although reference is made at various points in this clause to “this contract” in the singular, where the circumstances so require this should be read as a reference to contracts in the plural.
		
	ORDER HEREON:		47.50%
		
	 BASIS OF
 WRITTEN
LINES:
		Percentage of Whole
		
	 SIGNING

PROVISIONS:
		  
 In the event that the placement of this Reinsurance is not completed
by the commencement date of the period of Reinsurance then all lines written by that date, at the Reinsured’s option, may be signed in full. If such written lines hereon exceed 100% of the order, all lines written will be signed down in equal
proportions so that the aggregate signed lines are equal to 100% of the order.

		
			Whether before or after inception of the period of Reinsurance, the Reinsured may elect for the disproportionate signing of Reinsurer’s lines without further specific agreement of Reinsurers.
		
	LINE CONDITIONS:		None unless specified individually by Reinsurers hereon under their written participations.

  
 NB / 22-12-14 

 Willis Limited, Lloyd’s broker, authorised and regulated by the Financial Conduct
Authority. 
 Registered office: 51 Lime Street, London EC3M 7DQ. Registered number 181116 England and Wales 

Table of Contents

					
	 UMR
 Reinsured

Type
		 : B080110074N15
 : American Interstate
Insurance Company
 : Casualty Catastrophe Excess of Loss
		 

  

 SUBSCRIPTION AGREEMENT BETWEEN THE BROKER AND THE INSURERS / REINSURERS WHICH WILL NOT FORM PART OF THIS
AGREEMENT FOR CONTRACTUAL DOCUMENTATION PURPOSES 
  

							
	SLIP LEADER:		 

		
	BASIS OF AGREEMENT TO CONTRACT 		
	CHANGES:		Reinsurers hereon authorise the Slip Leader to be the sole judge in determining whether any future alterations to this Reinsurance Agreement should be agreed by the Slip Leader only and copied to other Reinsurers, or
agreed by all Reinsurers other than risks accepted pursuant to Special Acceptance Provision (if any).
		
			Subject to the foregoing:
			
			A.		In respect of each Reinsurer which at any time has the ability to send and receive ACORD messages:
				
					i.		Any contract change will be submitted by Willis Limited for agreement via an ‘ACORD message’;
				
					ii.		any contract change which requires notification will be notified by Willis Limited via an ‘ACORD message’;
				
					iii.		It is understood and agreed that whilst any contract change may be negotiated and agreed in any legally effective manner (and will be binding at that stage), such agreement of any contract change will be confirmed by each such
Reinsurer via an appropriate ‘ACORD message’. For the avoidance of any doubt, no further duty of disclosure arises in relation to any such confirmation.
			
			B.		In respect of each Reinsurer who does not have the ability to send and receive ACORD messages:
				
					i.		It is understood and agreed that whilst any contract change may be negotiated and agreed in any legally effective manner (and will be binding at that stage), any such contract change will be submitted/notified by Willis Limited
electronically via email or other electronic means;
				
					ii.		Such binding agreement of any contract change will be confirmed by each such Reinsurer via email or other electronic means. For the avoidance of any doubt, no further duty of disclosure arises in relation to any such
confirmation.

  
 NB / 22-12-14 

 Willis Limited, Lloyd’s broker, authorised and regulated by the Financial Conduct
Authority. 
 Registered office: 51 Lime Street, London EC3M 7DQ. Registered number 181116 England and Wales 

Table of Contents

					
	 UMR
 Reinsured

Type
		 : B080110074N15
 : American Interstate
Insurance Company
 : Casualty Catastrophe Excess of Loss
		 

  

			
	BASIS OF CLAIMS AGREEMENT:		  
 Claims review, as required by Slip Leader for the benefit of and at
the cost to current Reinsurers hereon. Settlement of fees will be by the parties authorising the claims review. In the event of cancellation of the Treaty, fees to be borne by final contract year.

		
			Lloyd’s Reinsurers:
		
			Claims to be managed in accordance with The Lloyd’s Claims Scheme (Combined), or as amended or any successor thereto
		
			IUA Company Reinsurers:
		
			Claims to be managed in accordance with IUA (or successor organisations) Claims Agreement practices.
		
			Lloyd’s Reinsurers / IUA Company Reinsurers:
		
			In respect of any Bureau claims settlements hereunder, Reinsurers who made their acceptance under the Bureau schemes agree to claims on a projected payment basis on the agreement of the respective Bureau Leading Reinsurer only.
Any further payments under this provision shall be agreed by the respective Bureau Leading Underwriter only. This will be binding on all following Lloyds and IUA Reinsurers and Xchanging Ins- sure Services (XIS) (or successor
organisations).
		
			Non-Bureaux Reinsurers:
		
			All claims shall be agreed by each Reinsurer according to their own practices.
		
			Reinsurers agree to arrange simultaneous settlement by money transfer to broker account three days before date Reinsured specifies they will settle, given seven days advance notice of same.

  
 NB / 22-12-14 

 Willis Limited, Lloyd’s broker, authorised and regulated by the Financial Conduct
Authority. 
 Registered office: 51 Lime Street, London EC3M 7DQ. Registered number 181116 England and Wales 

Table of Contents

					
	 UMR
 Reinsured

Type
		 : B080110074N15
 : American Interstate
Insurance Company
 : Casualty Catastrophe Excess of Loss
		 

  

			
	 CLAIMS

AGREEMENT
 PARTIES:
		Lloyd’s Reinsurers:
		
			The Leading Lloyd’s syndicate and, where required by the applicable Claims Scheme, the second Lloyd’s syndicate and/or the Scheme Service Provider.
		
			Lloyd’s Leader:

		
			The second Lloyd’s syndicate is: CSL1084

		
			IUA Company Reinsurers:
		
			Those companies acting in accordance with the IUA (or successor organisations) claims agreement practices.
		
			Non-Bureaux Reinsurers:
		
			All claims shall be agreed by each Reinsurer in respect of their own participation.
	 CLAIMS

ADMINISTRATION:
		Lloyd’s Reinsurers:
		
			Willis Limited and Reinsurers agree that any claims hereunder (including any claims related costs/fees) that are in scope and supported by Electronic Claims File (ECF) may be notified and administered via the Electronic Claims
File (ECF) system with any payment(s) processed via CLASS.
		
			Lloyd’s Reinsurers authorise Xchanging Claims Services to waive the deferred settlement system in the event of presentation of settlement request with first advice.
		
			IUA Company Reinsurers:
		
			All IUA Company Reinsurers agree to respond to claims via CLASS (unless otherwise specified here).
		
			Willis Limited and Reinsurers agree that any claims hereunder (including any claims related costs/fees) that are in scope and supported by Electronic Claims File (ECF) may be notified and administered via the Electronic Claims
File (ECF) system with any payment(s) processed via CLASS.

  
 NB / 22-12-14 

 Willis Limited, Lloyd’s broker, authorised and regulated by the Financial Conduct
Authority. 
 Registered office: 51 Lime Street, London EC3M 7DQ. Registered number 181116 England and Wales 

Table of Contents

					
	UMR Reinsured Type		 : B080110074N15
 : American Interstate
Insurance Company
 : Casualty Catastrophe Excess of Loss
		

  

  

			
			Non-Bureaux Reinsurers:
		
			Each Reinsurer agrees to receive all claims via Broker visit, email, repositories, facsimile or letter.
		
	RULES AND EXTENT OF ANY OTHER DELEGATED CLAIMS AUTHORITY:		None, unless otherwise specified
		
	SETTLEMENT DUE DATE:		28 February 2015
		
	INSTALMENT PREMIUM PERIOD OF CREDIT:		 30 days.

		
	ADJUSTMENT PREMIUM PERIOD OF CREDIT:		 120 days.

		
	BUREAUX ARRANGEMENTS:		Processing Documents:
		
			Xchanging Ins-sure Services (XIS) are authorised to accept Additional Premium, Return Premium, Premium Adjustment and Profit Commission figures, where applicable, without certification or production of letters or other documents
and enter in accordance with the figures shown thereon, without Reinsurers agreement.
		
			Reinsurers agree to the use of a copy (including a photocopy) or duplicate of the applicable Slip or Wording for the collection and taking down of Additional Premium(s), Return Premium(s), Premium Adjustment(s) and Profit
Commission(s).

  
 NB / 22-12-14 

 Willis Limited, Lloyd’s broker, authorised and regulated by the Financial Conduct
Authority. 
 Registered office: 51 Lime Street, London EC3M 7DQ. Registered number 181116 England and Wales 

Table of Contents

					
	UMR Reinsured Type		 : B080110074N15
 : American Interstate
Insurance Company
 : Casualty Catastrophe Excess of Loss
		

  

			
			Presentation of premium documentation to XIS by the Settlement Due Date(s) is deemed to be in compliance with the payment provisions.
		
			Reinsurers agree that Willis Limited may pay de-linked premiums for this Agreement at different times.
		
			Premium Processing Clause - LSW 3003 (14/12/09)
		
			Where the premium is to be paid through Xchanging Ins-sure Services (XIS), payment to Reinsurers will be deemed to occur on the day that a delinked premium is released for settlement by the Appointed Broker or in the case of
non-delinked premiums, on the day that the error-free Premium Advice Note (PAN) is submitted to XIS.
		
			Where premiums are to be paid by instalments under the Deferred Account Scheme, and the Appointed Broker does not receive the premium in time to comply with the agreed settlement date for the second or subsequent instalment, the
Appointed Broker, if electing to suspend the automatic debiting of the relevant deferred instalment, shall advise the Slip Leader in writing and instruct XIS accordingly. XIS shall then notify Reinsurers. Payment to any entity within the same group
of companies as the Appointed Broker will be deemed to be payment to the Appointed Broker.
		
			Nothing in this clause shall be construed to override the terms of any Premium Payment Warranty or Clause or any Termination or Cancellation provision contained in this contract. Furthermore, any amendment to the Settlement Due Date
of a premium instalment as a result of the operation of this Premium Processing Clause shall not amend the date that such instalment is deemed to be due for the purposes of such Premium Payment Warranty or Clause or Termination or Cancellation
provision unless (Re)Insurers expressly agree otherwise.
		
			 Appointed Broker: Willis Limited
 LSW
3003 14/12/09

		
			If the Settlement Due Date falls on a Saturday, a Sunday or a Bank Holiday, it is agreed that the Settlement Due Date shall be changed to the first following working day.
		
			XIS are authorised to:
		
			 •       sign policies in multiple copies

  
 NB / 22-12-14 

 Willis Limited, Lloyd’s broker, authorised and regulated by the Financial Conduct
Authority. 
 Registered office: 51 Lime Street, London EC3M 7DQ. Registered number 181116 England and Wales 

Table of Contents

					
	UMR Reinsured Type		 : B080110074N15
 : American Interstate
Insurance Company
 : Casualty Catastrophe Excess of Loss
		

  

			
	TAXES PAYABLE BY REINSURER(S):		  
 As stated under the heading “Taxes payable by Reinsurer(s) and
Administered by the Reinsured or their Agent”.

		
	COUNTRY OF ORIGIN		USA
		
	OVERSEAS BROKER		 Willis Re. Inc.
 15305 North Dallas
Parkway
 Suite 1100
 Collonnade III

Addison
 Texas

75001
 USA

		
	U.S. CLASSIFICATION		U.S Reinsurance
		
	NAIC CODES:		12228; 31895; 26869
		
	ALLOCATION OF PREMIUM TO CODING:		100% – W6
			 

		
	REGULATORY CLIENT CLASSIFICATION:		Reinsurance.

  
 NB / 22-12-14 

 Willis Limited, Lloyd’s broker, authorised and regulated by the Financial Conduct
Authority. 
 Registered office: 51 Lime Street, London EC3M 7DQ. Registered number 181116 England and Wales 

Table of Contents

					
	UMR Reinsured Type		 : B080110074N15
 : American Interstate
Insurance Company
 : Casualty Catastrophe Excess of Loss
		

  

			
	FEE PAYABLE BY REINSURED / CLIENT?		No
		
	TOTAL BROKERAGE:		15%
		
	OTHER DEDUCTIONS FROM PREMIUM:		None.

  
 NB / 22-12-14 

 Willis Limited, Lloyd’s broker, authorised and regulated by the Financial Conduct
Authority. 
 Registered office: 51 Lime Street, London EC3M 7DQ. Registered number 181116 England and Wales 

Table of Contents

					
	UMR Reinsured Type		 : B080110074N15
 : American Interstate
Insurance Company
 : Casualty Catastrophe Excess of Loss
		

  

 B.I.P.A.R. Statement 

In a co-reinsurance placement, following reinsurers may, but are not obliged to, follow the premium charged by the lead reinsurer. 

Reinsurers may not seek to guarantee for themselves terms as favourable as those which others subsequently achieve during the placement. 

 

			
	Reinsurer and Reference:		

		
	Written line(s):		12 1⁄2%            Ref.: 1131360115FY
		
	Final signed line(s):		10%
		
	Line Condition(s):		
	
	Signed in Lloyd’s this 22nd day of December 2014

Table of Contents

					
	UMR Reinsured Type		 : B080110074N15
 : American Interstate
Insurance Company
 : Casualty Catastrophe Excess of Loss
		

  

 B.I.P.A.R. Statement 

In a co-reinsurance placement, following reinsurers may, but are not obliged to, follow the premium charged by the lead reinsurer. 

Reinsurers may not seek to guarantee for themselves terms as favourable as those which others subsequently achieve during the placement. 

 

			
	Reinsurer and Reference:		

		
	Written line(s):		20%            Ref.: 51331715AA
		
	Final signed line(s):		10%
		
	Line Condition(s):		
	
	Signed in LLOYDS this 22ND day of DECEMBER 2014

Table of Contents

					
	UMR Reinsured Type		 : B080110074N15
 : American Interstate
Insurance Company
 : Casualty Catastrophe Excess of Loss
		

  

 B.I.P.A.R. Statement 

In a co-reinsurance placement, following reinsurers may, but are not obliged to, follow the premium charged by the lead reinsurer. 

Reinsurers may not seek to guarantee for themselves terms as favourable as those which others subsequently achieve during the placement. 

 

			
	Reinsurer and Reference:		

		
	Written line(s):		12.5%            Ref.:
		
	Final signed line(s):		10%
		
	Line Condition(s):		
	
	Signed in London this 22nd day of December, 2014

Table of Contents

					
	UMR Reinsured Type		 : B080110074N15
 : American Interstate
Insurance Company
 : Casualty Catastrophe Excess of Loss
		

  

 B.I.P.A.R. Statement 

In a co-reinsurance placement, following reinsurers may, but are not obliged to, follow the premium charged by the lead reinsurer. 

Reinsurers may not seek to guarantee for themselves terms as favourable as those which others subsequently achieve during the placement. 

 

			
	Reinsurer and Reference:		

		
	Written line(s):		7.5%            Ref.: 000028011500
		
	Final signed line(s):		7.5%
		
	Line Condition(s):		
	
	Signed in LLOYDS this 22ND day of DECEMBER 2014

Table of Contents

					
	UMR Reinsured Type		 : B080110074N15
 : American Interstate
Insurance Company
 : Casualty Catastrophe Excess of Loss
		

  

 B.I.P.A.R. Statement 

In a co-reinsurance placement, following reinsurers may, but are not obliged to, follow the premium charged by the lead reinsurer. 

Reinsurers may not seek to guarantee for themselves terms as favourable as those which others subsequently achieve during the placement. 

 

			
	Reinsurer and Reference:		

		
	Written line(s):		20%            Ref.: CA7542A/15TAA
		
	Final signed line(s):		10%
		
	Line Condition(s):		
	
	Signed in Zurich this 22 day of December 2014

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00241-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00241-of-00352.parquet"}]]