Document:

EXHIBIT 10.19

                                                              Treaty Number:
                                                              9870-00-0001-01/01

                                   COVER NOTE
                                   ----------

REINSURED:        FEDERATED NATIONAL INSURANCE COMPANY
                  Plantation, Florida
                  (hereinafter referred to as the "Company")

PERIOD:           Effective 12:01 a.m., Eastern Standard Time, July 1, 2001 to
                  12:01 a.m., Eastern Standard Time, July 1, 2002, as respects
                  all losses occurring (or beginning) during the term of this
                  Contract.

TYPE:             FIRST PROPERTY CATASTROPHE EXCESS OF LOSS REINSURANCE CONTRACT

CLASS:            Inforce, new and renewal business classified by the Company as
                  Property, including Homeowners and Mobilehome.

EXCLUSIONS:       As per attached.

TERRITORY:        To follow the Company's original policies.

LIMIT:            100% of $2,500,000 each and every loss occurrence excess of
                  $3,000,000 each and every loss occurrence.

                  The Company shall retain a minimum of 5% net.

PREMIUM:          Rate:               6.9444% Gross Net Earned Premium Income.

                  Deposit Premium:    $625,000 annually, payable in equal
                                      quarterly installments of $156,250, at
                                      each July 1, October 1, January 1, and
                                      April 1.

                  Minimum
                  Premium:            $500,000

REINSTATEMENT:    One full reinstatement with additional premium calculated pro
                  rata as to amount and 100% as to time.

CONDITIONS:       Ultimate Net Loss Clause (including Loss Adjustment Expenses).
                  Definition of Loss Occurrence Clause- BRMA 27D.
                                 No Reinstatement for same event.
                                 72 hours Wind, Hail, Riot.
                                 168 hours Earthquake, Freeze and all other
                                 perils.

                                       1

<PAGE>
                                                              Treaty Number
                                                              9870-00-0001-01/01

CONDITIONS:       Extra Contractual Obligations Clause @ 80%.
(Continued)       Losses in Excess of Original Policy Limits Clause @ 80%.
                  Net Retained Lines Clause - BRMA 32D.
                  Currency Clause.
                  Loss Funding Clause - BRMA 55I.
                  Offset Clause.
                  Taxes Clause and Federal Excise Tax Clause - BRMA 50A and
                    BRMA 17B.
                  Errors and Omissions Clause.
                  Access to Records Clause.
                  Notice of Loss and Loss Settlements Clause.
                  Service of Suit Clause.
                  Insolvency Clause.
                  Arbitration Clause - BRMA 6D.
                  Interest Penalty Clause - BRMA 70H.
                  Guy Carpenter & Company, Inc. Intermediary Clause.

WORDING:          To follow existing wording as far as applicable.

INFORMATION:      Any recoveries from the Florida Hurricane Catastrophe Fund
                  will inure to the benefit of Reinsurers hereon.

                  Estimated Subject Earned Premium = $9,000,000.

                                       2

<PAGE>
                                                              Treaty Number
                                                              9870-00-0001-01/01
<TABLE>
<CAPTION>

EFFECTED WITH:
--------------
                 <c>           <c>                                                     <c>
FEIN NO.:           NAIC NO.:     Through Guy Carpenter & Co. - Atlanta
---------           ---------     -------------------------------------
13-3031176           38636        Partner Reinsurance Corporation of the U.S.             30.000%
                                  New York, New York

                                  Patriot Re Corporation
                                  Skillman, New Jersey
                                  For and on behalf of:
                                  Various Lloyd's Syndicates                               4.000%
                                  (Per Schedule B Attached)
                                  London, England

                                  St. Paul Re, Inc.
                                  Schaumberg, Illinois
                                  For and on behalf of:

41-0406690           24767        St. Paul Fire and Marine Insurance Company              10.000%
                                  St. Paul, Minnesota

6-1206728            29807        PX RE Reinsurance Company
                                  Edison, New Jersey                                      20.000%
                                                                                          -------
                                  Sub-Total:                                              64,000%

FEIN NO.:           NAIC NO.:     Through Heath Lambert Limited - London
---------           ---------     --------------------------------------
AA-1122000                        Underwriting Members of Lloyd's                         25.000%
                                  (Per Schedule A Attached)
                                  London, England

                                  Sub Total:                                              25.000%
                                                                                          -------

                                  TOTAL PLACEMENT                                         89.000%
</TABLE>

                                       3

<PAGE>

                                                              Treaty Number
                                                              9870-00-0001-01/01

                         GUY CARPENTER & COMPANY, INC.

                           /s/ Hartwell C. Dew
                          ---------------------------
                                Hartwell C. Dew
                               Managing Director

                           /s/ Robert A. McKenzie, Jr.
                          ---------------------------
                            Robert A. McKenzie, Jr.
                                 Vice President

This Cover Note confirms the terms and conditions of the reinsurance negotiated
with the listed reinsurers on your behalf. In the event that any of these
details do not meet with your approval, or the security of the participating
reinsurers does not meet with your requirements, please notify this office
immediately. If all is in order, please sign and return one copy of this Cover
Note to confirm your approval and complete our files.

REGULATION 98:

Premium and loss payments made to Guy Carpenter & Company, Inc. shall be
deposited in a Premium and Loss Account in accordance with Section 32.3(a)(1) of
Regulation 98 of the New York Insurance Department. The parties hereto consent
to withdrawals from said account in accordance with Section 32.3(a)(3) of the
Regulation, including interest and Federal Excise Tax.

ACCEPTED & APPROVED /s/ Richard A. Widdicombe             DATE  June 29, 2001
                    -------------------------------           -----------------

                                       4
<PAGE>

                                                              Treaty Number
                                                              9870-00-0001-01/01

EXCLUSIONS:
-----------

1.   Reinsurance assumed by the Company, other than inter-company reinsurance.

2.   Hail damage to growing or standing crops.

3.   Flood Insurance when written and classified as such.

4.   Mortgage Impairment and Difference in Conditions when written as such.

5.   Title Insurance and all forms of Financial Guarantee, Credit and Insolvency
     Insurance.

6.   Aviation, Ocean Marine, Boiler and Machinery, Fidelity and Surety, Accident
     and Health, Animal Mortality and Workers' Compensation and Employer's
     Liability Insurance.

7.   Errors and Omissions, Malpractice and any other type of Professional
     Liability Insurance.

8.   Seepage and Pollution and Seepage Exclusion Clause, BRMA 39A.

9.   War as set forth in North America War Exclusion Clause (Reinsurance), BRMA
     56A.

10.  Nuclear Incident as set forth in the Nuclear Incident Exclusion Clauses,
     BRMA 35A and 35B.

11.  Pools, Associations and Syndicates as set forth in the Pools and
     Associations and Syndicates Exclusion Clause, BRMA 40C.

12.  Insolvency Funds as set forth in the Insolvency Funds Exclusion Clause,
     BRMA 20A.

13.  Transmission and distribution lines.

<PAGE>

                                                              Treaty Number
                                                              9870-00-0001-01/01

                                   SCHEDULE A

               PARTICIPATIONS FOR UNDERWRITING MEMBERS OF LLOYD'S

           PROPERTY CATASTROPHE EXCESS OF LOSS REINSURANCE AGREEMENT

                            EFFECTIVE: JULY 1, 2001

Syndicate Number         Pseudonym             Share            NAIC ID Number
----------------         ---------             -----            --------------

    2001                   AML                15.000%            AA-1128001

    2791                   MAP                10.000%            AA-1128791
                                              ------

Total Participation for
Underwriting Members of Lloyd's               25.000%

                                       6
<PAGE>
                                                              Treaty Number
                                                              9870-00-0001-01/01

                                   SCHEDULE B

               PARTICIPATIONS FOR UNDERWRITING MEMBERS OF LLOYD'S

                         THROUGH PATRIOT RE CORPORATION

           PROPERTY CATASTROPHE EXCESS OF LOSS REINSURANCE AGREEMENT

Syndicate Number         Pseudonym             Share            NAIC ID Number
----------------         ---------             -----            --------------

0002                       WHS                 6.560%            AA-1126002

0227                       ROS                39.340%            AA-1126227

0506                       PDA                 3.280%            AA-1126506

0990                       BAR                42.620%            AA-1126990

1009                       DEH                 6.560%            AA-1127009

1173                       CML                 1.640%            AA-1127173

Total Participation for
Underwriting Members of Lloyd's                100.000% of 4.000%
Through Patriot Re Corporation

                                       7EXHIBIT 10.20

                                                              Treaty Number:
                                                              9870-00-0001-01/02

                                   COVER NOTE
                                   ----------

REINSURED:        FEDERATED NATIONAL INSURANCE COMPANY
                  Plantation, Florida
                  (hereinafter referred to as the "Company")

PERIOD:           Effective 12:01 a.m., Eastern Standard Time, July 1, 2001 to
                  12:01 a.m., Eastern Standard Time, July 1, 2002, as respects
                  all losses occurring (or beginning) during the term of this
                  Contract.

TYPE:             SECOND PROPERTY CATASTROPHE EXCESS OF LOSS REINSURANCE
                  CONTRACT

CLASS:            Inforce, new and renewal business classified by the Company as
                  Property, including Homeowners and Mobilehome.

EXCLUSIONS:       As per attached.

TERRITORY:        To follow the Company's original policies.

LIMIT:            100% of $5,000,000 each and every loss occurrence excess of
                  $5,500,000 each and every loss occurrence.

                  The Company shall retain a minimum of 5% net.

PREMIUM:          Rate:               8.0556% Gross Net Earned Premium Income.

                  Deposit Premium:    $725,000 annually, payable in equal
                                      quarterly installments of $181,250, at
                                      each July 1, October 1, January 1, and
                                      April 1.

                  Minimum
                  Premium:            $580,000

REINSTATEMENT:    One full reinstatement with additional premium calculated pro
                  rata as to amount and 100% as to time.

CONDITIONS:       Ultimate Net Loss Clause (including Loss Adjustment Expenses).
                  Definition of Loss Occurrence Clause- BRMA 27D.
                                 No Reinstatement for same event.
                                 72 hours Wind, Hail, Riot.
                                 168 hours Earthquake, Freeze and all other
                                 perils.

                                       1

<PAGE>
                                                              Treaty Number
                                                              9870-00-0001-01/02

CONDITIONS:       Extra Contractual Obligations Clause @ 80%.
(Continued)       Losses in Excess of Original Policy Limits Clause @ 80%.
                  Net Retained Lines Clause - BRMA 32D.
                  Currency Clause.
                  Loss Funding Clause - BRMA 55I.
                  Offset Clause.
                  Taxes Clause and Federal Excise Tax Clause - BRMA 50A and
                    BRMA 17B.
                  Errors and Omissions Clause.
                  Access to Records Clause.
                  Notice of Loss and Loss Settlements Clause.
                  Service of Suit Clause.
                  Insolvency Clause.
                  Arbitration Clause - BRMA 6D.
                  Interest Penalty Clause - BRMA 70H.
                  Guy Carpenter & Company, Inc. Intermediary Clause.

WORDING:          To follow existing wording as far as applicable.

INFORMATION:      Any recoveries from the Florida Hurricane Catastrophe Fund
                  will inure to the benefit of Reinsurers hereon.

                  Estimated Subject Earned Premium = $9,000,000.

                                       2

<PAGE>
                                                              Treaty Number
                                                              9870-00-0001-01/02
<TABLE>
<CAPTION>

EFFECTED WITH:
--------------
                 <c>           <c>                                                     <c>
FEIN NO.:           NAIC NO.:     Through Guy Carpenter & Co. - Atlanta
---------           ---------     -------------------------------------
13-2997499           38776        Folksamerica Reinsurance Company                         5.000%
                                  New York, New York

13-2781282           25070        Odyssey Reinsurance Corporation                          5.500%
                                  Stamford, Connecticut

13-3031176           38636        Partner Reinsurance Corporation of the U.S.             30.000%
                                  New York, New York

                                  Patriot Re Corporation
                                  Skillman, New Jersey
                                  For and on behalf of:
                                  Various Lloyd's Syndicates                               2.500%
                                  (Per Schedule B Attached)
                                  London, England

23-1641984           10219        QBE Reinsurance Company                                  8.000%
                                  Columbia, Missouri

43-1424791           26557        Shelter Reinsurance Company                              5.000%
                                  Columbia, Missouri

AA-3190757                        XL Re Limited                                           20.000
                                  Hamilton, Bermuda                                       ------

                                  Sub-Total:                                              76.000%

FEIN NO.:           NAIC NO.:     Through Heath Lambert Limited - London
---------           ---------     --------------------------------------
AA-1122000                        Underwriting Members of Lloyd's                          4.000%
                                  (Per Schedule A Attached)
                                  London, England

AA-1120962                        St. Paul Reinsurance Company Limited                    15.000%
                                  London, England

                                  Sub Total:                                              19.000%
                                                                                          -------

                                  TOTAL PLACEMENT                                         95.000%
</TABLE>

                                       3

<PAGE>

                                                              Treaty Number
                                                              9870-00-0001-01/02

                         GUY CARPENTER & COMPANY, INC.

                           /s/ Hartwell C. Dew
                          ---------------------------
                                Hartwell C. Dew
                               Managing Director

                           /s/ Robert A. McKenzie, Jr.
                          ---------------------------
                            Robert A. McKenzie, Jr.
                                 Vice President

This Cover Note confirms the terms and conditions of the reinsurance negotiated
with the listed reinsurers on your behalf. In the event that any of these
details do not meet with your approval, or the security of the participating
reinsurers does not meet with your requirements, please notify this office
immediately. If all is in order, please sign and return one copy of this Cover
Note to confirm your approval and complete our files.

REGULATION 98:

Premium and loss payments made to Guy Carpenter & Company, Inc. shall be
deposited in a Premium and Loss Account in accordance with Section 32.3(a)(1) of
Regulation 98 of the New York Insurance Department. The parties hereto consent
to withdrawals from said account in accordance with Section 32.3(a)(3) of the
Regulation, including interest and Federal Excise Tax.

ACCEPTED & APPROVED /s/ Richard A. Widdicombe           DATE   June 29, 2001
                    --------------------------------          ----------------

                                       4
<PAGE>

                                                              Treaty Number
                                                              9870-00-0001-01/02

EXCLUSIONS:
-----------

1.   Reinsurance assumed by the Company, other than inter-company reinsurance.

2.   Hail damage to growing or standing crops.

3.   Flood Insurance when written and classified as such.

4.   Mortgage Impairment and Difference in Conditions when written as such.

5.   Title Insurance and all forms of Financial Guarantee, Credit and Insolvency
     Insurance.

6.   Aviation, Ocean Marine, Boiler and Machinery, Fidelity and Surety, Accident
     and Health, Animal Mortality and Workers' Compensation and Employer's
     Liability Insurance.

7.   Errors and Omissions, Malpractice and any other type of Professional
     Liability Insurance.

8.   Seepage and Pollution and Seepage Exclusion Clause, BRMA 39A.

9.   War as set forth in North America War Exclusion Clause (Reinsurance), BRMA
     56A.

10.  Nuclear Incident as set forth in the Nuclear Incident Exclusion Clauses,
     BRMA 35A and 35B.

11.  Pools, Associations and Syndicates as set forth in the Pools and
     Associations and Syndicates Exclusion Clause, BRMA 40C.

12.  Insolvency Funds as set forth in the Insolvency Funds Exclusion Clause,
     BRMA 20A.

13.  Transmission and distribution lines.

<PAGE>

                                                              Treaty Number
                                                              9870-00-0001-01/02

                                   SCHEDULE A

               PARTICIPATIONS FOR UNDERWRITING MEMBERS OF LLOYD'S

           PROPERTY CATASTROPHE EXCESS OF LOSS REINSURANCE AGREEMENT

                            EFFECTIVE: JULY 1, 2001

Syndicate Number         Pseudonym             Share            NAIC ID Number
----------------         ---------             -----            --------------

    1400                   DRE                 4.000%            AA-1127400
                                               ------

Total Participation for
Underwriting Members of Lloyd's                4.000%

                                       6
<PAGE>
                                                              Treaty Number
                                                              9870-00-0001-01/02

                                   SCHEDULE B

               PARTICIPATIONS FOR UNDERWRITING MEMBERS OF LLOYD'S

                         THROUGH PATRIOT RE CORPORATION

           PROPERTY CATASTROPHE EXCESS OF LOSS REINSURANCE AGREEMENT

                            EFFECTIVE: JULY 1, 2001

Syndicate Number         Pseudonym             Share            NAIC ID Number
----------------         ---------             -----            --------------

0002                       WHS                 6.560%            AA-1126002

0227                       ROS                39.340%            AA-1126227

0506                       PDA                 3.280%            AA-1126506

0990                       BAR                42.620%            AA-1126990

1009                       DEH                 6.560%            AA-1127009

1173                       CML                 1.640%            AA-1127173

Total Participation for
Underwriting Members of Lloyd's                100.000% of 2.500%
Through Patriot Re Corporation

                                       7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}]]