Document:

exv10w146

EXHIBIT
10.146

QUOTA SHARE

REINSURANCE CONTRACT

EFFECTIVE JANUARY 1, 2005

between

LIBERTY MUTUAL INSURANCE COMPANY

Boston, Massachusetts

(with and on behalf of THE FIRST LIBERTY INSURANCE CORPORATION,

West Des Moines, Iowa

LIBERTY MUTUAL FIRE INSURANCE COMPANY

Boston, Massachusetts

LM INSURANCE CORPORATION

West Des Moines, Iowa

LIBERTY INSURANCE CORPORATION

South Burlington, Vermont

LIBERTY COUNTY MUTUAL INSURANCE COMPANY,

Irving, Texas

for business classified as Business Solutions Group — Liberty Northwest Multi-state, only

and

LIBERTY NORTHWEST INSURANCE CORPORATION

of Portland, Oregon

BSG/LNW Quote Share Reinsurance Contract

Page 1 of 13

MUL05BSG01

 

 

QUOTA SHARE REINSURANCE CONTRACT

	 	 	 	 	 	 	 
	ARTICLE	 	CONTENTS	 	PAGE
	 	 	PREAMBLE
	 	 	3	 
	I	 	CLASSES OF BUSINESS REINSURED
	 	 	3	 
	II	 	EFFECTIVE DATE AND TERMINATION
	 	 	3	 
	III	 	TERRITORY
	 	 	4	 
	IV	 	EXCLUSIONS
	 	 	4	 
	V	 	RETENTION AND LIMIT
	 	 	4	 
	VI	 	LOSS IN EXCESS OF POLICY LIMITS/EXTRA CONTRACTUAL
OBLIGATIONS
	 	 	4	 
	VII	 	LOSS AND LOSS ADJUSTMENT EXPENSE
	 	 	5	 
	VIII	 	SALVAGE AND SUBROGATION
	 	 	5	 
	IX	 	REPORTS AND REMITTANCES
	 	 	5	 
	X	 	PREMIUM AND CEDING COMMISSION
	 	 	6	 
	XI	 	OFFSET
	 	 	6	 
	XII	 	ACCESS TO RECORDS
	 	 	6	 
	XIII	 	ERRORS OR OMISSIONS
	 	 	6	 
	XIV	 	CURRENCY
	 	 	6	 
	XV	 	TAXES
	 	 	7	 
	XVI	 	INSOLVENCY
	 	 	7	 
	XVII	 	ARBITRATION
	 	 	7	 
	XVIII	 	AMENDMENTS
	 	 	8	 
	XIX	 	ENTIRE AGREEMENT
	 	 	8	 
	XX	 	CONFIDENTIALITY CLAUSE
	 	 	8	 
	XXI	 	DEFINITION OF RESPONSIBILITIES
	 	 	9	 
	 	 	SIGNATURES
	 	 	10	 
	 	 	SIGNATURES
	 	 	11	 
	 	 	 
	 	 	 	 
	ATTACHMENT:	 	EXHIBIT A — BLOCK AND ASSOCIATION NUMBER(S)
	 	 	12	 

BSG/LNW Quote Share Reinsurance Contract

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QUOTA SHARE

REINSURANCE CONTRACT

between

LIBERTY MUTUAL INSURANCE COMPANY

Boston, Massachusetts

(with and on behalf of THE FIRST LIBERTY INSURANCE CORPORATION,

West Des Moines, Iowa

LIBERTY MUTUAL FIRE INSURANCE COMPANY

Boston, Massachusetts

LM INSURANCE CORPORATION

West Des Moines, Iowa

LIBERTY INSURANCE CORPORATION

South Burlington, Vermont

LIBERTY COUNTY MUTUAL INSURANCE COMPANY,

Irving, Texas

for business classified as Business Solutions Group — Liberty Northwest Multi-state, only)

(hereinafter referred to as the “Company”)

and

LIBERTY NORTHWEST INSURANCE CORPORATION

All of Portland, Oregon

(hereinafter referred to as the “Reinsurer”)

This reinsurance contract (“Contract”) is entered into between the Company with its principal
place of business at Boston, Massachusetts, writing Classes of Business Reinsured as defined in
Article I below, and the Reinsurer with its principal place of business at Portland, Oregon.

ARTICLE I — CLASSES OF BUSINESS REINSURED

	A.	 	By this Contract the Company obligates itself to cede to the Reinsurer and the Reinsurer
obligates itself to accept quota share reinsurance of the Company’s net liability under
policies, contracts and binders of insurance (hereinafter called “Policies”) having an
effective date during the term of this Contract, written by the Business Solutions Group
profit center, for Policies classified by Business Solutions Group as multi-state business
written on behalf of Liberty Northwest, with block and association number(s) as shown in
Exhibit A for all lines of business other than Workers’ Compensation.
	 
	B.	 	“Net liability” as used herein is defined as the Company’s gross liability less any cessions
to Hartford Steam Boiler for Equipment Breakdown coverage. The Company will not obtain any
other reinsurance on this business.
	 
	C.	 	The liability of the Reinsurer with respect to each cession hereunder shall commence
obligatorily and simultaneously with that of the Company, subject to the terms, conditions and
limitations hereinafter set forth.

ARTICLE II — EFFECTIVE DATE AND TERMINATION

	A.	 	This Contract shall become effective on 12:01 AM Local Standard Time, January 1, 2005,
for new and renewal policies effective on or after that date and shall remain in force
until cancelled per the terms of Article II B.

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	B.	 	As of January 1, of each year, the provisions in this Agreement may be renegotiated
by both parties.
	 
	C.	 	Either party may terminate this agreement at any time by sending to the other, by certified
mail to its principal office, notice stating the time and date when, not less than 90 days
after the date of mailing of such notice, termination shall be effective. Once a cancellation
notice has been received by the parties no new business will be accepted with effective dates
on or after the cancellation date.
	 
	D.	 	Unless the Company elects to reassume the ceded unearned premium in force on the effective
date of termination, and so notifies the Reinsurer prior to or as promptly as possible after
the effective date of termination, reinsurance hereunder on business in force on the effective
date of termination shall remain in full force and effect until expiration, cancellation or
next premium anniversary of such business, whichever first occurs, but in no event beyond 18
months following the effective date of termination.

ARTICLE III —TERRITORY

This Agreement applies to risks located in the United States of America, its territories and
possessions, except that with respect to Inland Marine and Multiple Peril Policies covered
hereunder, the territorial limits of this Agreement shall be those of the original Policies when
such Policies are written to cover risks primarily located in the United States of America, its
territories and possessions.

ARTICLE IV— EXCLUSIONS

THIS AGREEMENT DOES NOT COVER:

	A.	 	Policies which are issued by the Company without the Reinsurers knowledge.

ARTICLE V— RETENTION AND LIMIT

As respects business subject to this Contract the Company shall cede to the Reinsurer and the
Reinsurer agrees to accept 100% of the Company’s net liability.

ARTICLE VI— LOSS IN EXCESS OF POLICY LIMITS/EXTRA CONTRACTUAL OBLIGATIONS

	A.	 	In the event the Company pays or is held liable to pay an amount of loss in excess of its
policy limit, but otherwise within the terms of its policy (hereinafter called “loss in excess
of policy limits”) or any punitive, exemplary, compensatory or consequential damages, other
than loss in excess of policy limits (hereinafter called “extra contractual obligations’)
because of alleged or actual bad faith or negligence on its part in rejecting a settlement
within policy limits, or in discharging its duty to defend or prepare the defense in the trial
of an action against its policyholder, or in discharging its duty to prepare or prosecute an
appeal consequent upon such an action, or in otherwise handling a claim under a policy subject
to this Contract, 100% of the loss in excess of policy limits and/or 100% of the extra
contractual obligations shall be covered hereunder.
	 
	B.	 	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.
	 
	C.	 	Notwithstanding anything stated herein, this Contract shall not apply to any loss in excess
of policy limits or any extra contractual obligation incurred by the Company as a result of
any fraudulent and/or criminal act by any officer or director of the Company acting
individually or collectively or in collusion with any individual or corporation or any

BSG/LNW Quote Share Reinsurance Contract

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		 	other organization or party involved in the presentation, defense or settlement of any
claim covered hereunder.

	D.	 	Notwithstanding anything stated herein, this Contract shall apply to any loss in excess of
the policy limits or any extra contractual obligation incurred by the Reinsurer as a result of
any fraudulent and/or criminal act by any officer or director of the Reinsurer acting
individually or collectively or in collusion with any individual or corporation or any other
organization or party involved in the presentation, defense or settlement of any claim covered
hereunder.

ARTICLE VII — LOSS AND LOSS ADJUSTMENT EXPENSE

	A.	 	Losses shall be handled by the Reinsurer. The Company shall have the right to
participate, at its own expense, in the defense or control of any claim or suit or
proceeding involving this reinsurance.
	 
	B.	 	In the event of a claim under a policy subject hereto, the Reinsurer shall be liable for loss
adjustment expense incurred by the Company in connection therewith, except as noted under A
above.
	 
	C.	 	Loss adjustment expense shall exclude the office expenses of the Company and the salaries and
expenses of its employees.

ARTICLE VIII — SALVAGE AND SUBROGATION

The Company hereby agrees to enforce its right to salvage or subrogation relating to any loss and
to prosecute all claims as appropriate, arising out of such rights. The Reinsurer will provide this
service for the Company.

ARTICLE IX— REPORTS AND REMITTANCES

	A.	 	The Company and the Reinsurer will report and record the transaction 45 days after the end of
each calendar month.
	 
	B.	 	The data reported will contain all of the information necessary for the Reinsurer to properly
record and account for the transactions in the agreement and will include but not be limited
to:

	 	1.	 	Ceded net written premium
	 
	 	2.	 	Unearned premium
	 
	 	3.	 	Ceding commission
	 
	 	4.	 	Ceded losses and loss adjustment expense paid
	 
	 	5.	 	Outstanding case reserves
	 
	 	6.	 	IBNR

	 	 	Amounts due to or from the Company to the Reinsurer will be settled within 30 days.
	 
	C.	 	Annually, the Company shall furnish the Reinsurer with such information as the Reinsurer may
require to complete its Annual Convention Statement and/or any other mandated filings.

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ARTICLE X — PREMIUM AND CEDING COMMISSION

The premiums payable to the Reinsurer shall be calculated at the same gross rates and on the same
basis as the premiums received by the company on its original policies. The Reinsurer shall allow
the Company a ceding commission of 35.0% on written premium that will cover the following Company
expenses:

	 	1.	 	100% of Premium taxes
	 
	 	2.	 	Overhead
	 
	 	3.	 	Processing support
	 
	 	4.	 	Unallocated claim expense
	 
	 	5.	 	Agents Commission

ARTICLE XI — OFFSET (BRMA 36C)

The Company and the Reinsurer shall have the right to offset any balance or amounts due from one
party to the other under the terms of the Contract. 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.

ARTICLE XII — ACCESS TO RECORDS

The Reinsurer or its duly authorized representatives shall have the right to examine, at the
offices of the Company at a reasonable time, during the currency of this Agreement or anytime
thereafter, all books and records of the Company relating to business which is the subject of this
Agreement.

ARTICLE XIII — ERRORS OR OMISSIONS

Errors or omissions of an administration nature on the part of the Company shall not invalidate the
reinsurance under this Agreement, provided such errors or omissions are corrected promptly after
discovery thereof; but the liability of the Reinsurer under this Agreement or any exhibits,
addenda, or endorsements attached hereto shall in no event exceed the limits specified herein nor
be extended to cover any risks, perils, lines of business or classes of insurance generally or
specifically excluded herein.

Errors and omissions of an administration nature on the part of the Reinsurer shall not invalidate
the reinsurance under this Agreement, provided such errors or omissions are corrected promptly
after discovery thereof, but the liability of the Company under this Agreement or any exhibits,
addenda, or endorsements attached hereto shall in no event exceed the limits specified herein nor
be extended to cover any risks, perils, lines of business or classes of insurance generally or
specifically excluded herein.

ARTICLE XIV — CURRENCY

Wherever the word “dollars” or the “$” symbol is used in this Agreement, it shall mean dollars of
the United States of America.

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ARTICLE XV—TAXES

The Company shall be liable for all taxes on premiums paid to the Reinsurer under this Agreement,
except income or profit taxes of the Reinsurer, and shall indemnify and hold the Reinsurer harmless
for any such taxes which the Reinsurer may become obligated to pay to any local, state or federal
taxing authority.

ARTICLE XVI — INSOLVENCY

	A.	 	In the event of insolvency of the Company, the reinsurance provided by this Agreement shall
be payable by the Reinsurer on the basis of the liability of the Company as respects Policies
covered hereunder, without diminution because of such insolvency, directly to the Company or
its liquidator, receiver, conservator or statutory successor except as provided in the
Massachusetts Insurance Law.
	 
	B.	 	The Reinsurer shall be given written notice of the pendency of each claim or loss which may
involve the reinsurance provided by this Agreement within a reasonable time after such claim
or loss is filed in the insolvency proceedings. The Reinsurer shall have the right to
investigate each such claim or loss and interpose, at its own expense, in the proceedings
where the claim or loss is to be adjudicated, any defense which it may deem available to the
Company, its liquidator, receiver, conservator or statutory successor. The expense thus
incurred by the Reinsurer shall be chargeable, subject to court approval, against the
insolvent Company as part of the expense of liquidation to the extent of a proportionate share
of the benefit which may accrue to the Company solely as a result of the defense undertaken by
the Reinsurer.
	 
	C.	 	In addition to the offset provisions set forth in Article XII — Offset, any debts or credits,
liquidated or unliquidated, in favor of or against either party on the date of the
receivership or liquidation order (except where the obligation was purchased by or transferred
to be used as an offset) are deemed mutual debts or credits and shall be set off with the
balance only to be allowed or paid. Although such claim on the part of either party against
the other may be unliquidated or undetermined in amount on the date of the entry of the
receivership or liquidation order, such claim will be regarded as being in existence as of
such date and any claims then in existence and held by the other party may be offset against
it.
	 
	D.	 	Nothing contained in this Article is intended to change the relationship or status of the
parties to this Agreement or to enlarge upon the rights or obligations of either party
hereunder except as provided herein.

ARTICLE XVII — ARBITRATION

	A.	 	As a condition precedent to any right of action hereunder, in the event of any
dispute or difference of opinion hereafter arising with respect to this Contract, it is hereby
mutually agreed that such dispute or difference of opinion shall be submitted to arbitration.
One Arbiter shall be chosen by the Company, the other by the Reinsurer, and an Umpire shall be
chosen by two Arbiters before they enter upon arbitration, all of whom shall be active or
retired disinterested executive officers of insurance or reinsurance companies or Lloyd’s
London Underwriters. In the event that either party shall fail to choose an Arbiter within 30
days following a written request by the other party to do so, the requesting party may choose
two Arbiters who shall in turn choose an Umpire before entering upon arbitration. If the two
Arbiters fail to agree upon the selection of an umpire within 30 days following their
appointment, each Arbiter shall nominate three candidates within 10 days thereafter, two of
whom the other shall decline, and the decision shall be made by drawing lots.

BSG/LNW Quote Share Reinsurance Contract

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	B.	 	Each party shall present its case to the Arbiters within 30 days following the date of
appointment of the Umpire. The Arbiters shall consider this Contract as an honorable
engagement rather than merely as a legal obligation and they are relieved of all judicial
formalities and may abstain from following the strict rules of law. The decision of the
Arbiters shall be final and binding on both parties; but failing to agree, they shall call
in the Umpire and the decision of the majority shall be final and binding upon both
parties. Judgment upon the final decision of the Arbiters may be entered in any court of
competent jurisdiction.
	 
	C.	 	If more than one reinsurer is involved in the same dispute, all such reinsurers shall
constitute and act as one party for purposes of this Article and communications shall be made
by the Company to each of the reinsurers constituting one party, provided, however, that
nothing herein shall impair the rights of such reinsurers to assert several, rather than
joint, defenses or claims, nor be construed as changing the liability of the reinsurers
participating under the terms of this Contract from several to joint.
	 
	D.	 	Each party shall bear the expense of its own Arbiter, and shall jointly and equally bear with
the other the expense of the Umpire and of the arbitration. In the event that the two Arbiters
are chosen by one party, as above provided, the expense of the Arbiters, the Umpire and the
arbitration shall be equally divided between the two parties.
	 
	E.	 	Any arbitration proceedings shall take place in Boston, Massachusetts unless otherwise
mutually agreed upon by the parties to this Contract. Notwithstanding the location of the
arbitration, all proceedings pursuant hereto shall be governed by the law of the state in
which the Company has its principal office.

ARTICLE XVIII — AMENDMENTS

This Agreement may be amended by mutual consent of the parties expressed in an addendum; and such
addendum, when executed by both parties, shall be deemed to be an integral part of this Agreement
and binding on the parties hereto.

ARTICLE XIX — ENTIRE AGREEMENT

This Agreement represents the entire agreement and understanding among the parties, and may not be
changed except in writing, signed by the parties. No other oral or written agreements or contracts
relating to the risks reinsured hereunder currently exist and/or are contemplated between the
parties.

ARTICLE XX — CONFIDENTIALITY CLAUSE

All terms and conditions of this Agreement and any materials provided in the course of inspection
shall be kept confidential by the Reinsurer as against third parties, unless the disclosure is
required pursuant to process of law or unless the disclosure is to Reinsurer’s retrocessionaires,
financial auditors or governing regulatory bodies. Disclosing or using this information for any
purpose beyond the scope of this Agreement, or beyond the exceptions set forth above, is expressly
forbidden without the prior consent of the Company.

BSG/LNW Quote Share Reinsurance Contract

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ARTICLE XXI — DEFINITION OF RESPONSIBILITIES

The Company agrees to provide policy rating and production on behalf of the Reinsurer, with the
duties to be shared as follows:

	 	A.	 	All underwriting duties will remain the responsibility of the Reinsurer, in regards
to risk selection criteria. The Reinsurer may bind quotations as provided by the
Company. Prior to any services provided by the Company, the Reinsurer is required to
furnish the Company with all supporting documentation including but not limited to; loss
runs, inspections, audits and brochures. In addition, a signed application(s) and UM/UlM
and TRIA letters, if required, must be received prior to issuance of the policy. The
Company will also be responsible for ensuring compliance with schedule ratings, IRPM,
experience ratings and company placement as per Company filing requirements.
	 
	 	B.	 	All policy submissions and related correspondence from the Reinsurer will be faxed to
the Company’s Mishawaka office, to the attention of Business Solutions Group. Completed
ratings will be sent by the Company to the Reinsurer via e-mail, within 5 business days.
	 
	 	C.	 	All requests for policy changes will come from the Reinsurer and will be sent to the
Company’s Mishawaka office to the attention of Business Solutions Group.
	 
	 	D.	 	The Reinsurer will provide renewal instructions to the Company 100 days prior to the
effective date of the renewal. If not received, the policy will be issued based on Business
Solutions Group renewal quidelines (policy will be issued as expiring).
	 
	 	E.	 	The Company will send a copy of non-renewal notices to both the insured and the
Reinsurer.
	 
	 	F.	 	The Company will issue all automobile ID cards and certificates of insurance as needed.
	 
	 	G.	 	Upon receipt of Notice of New Business from the Reinsurer, the Company will produce 3
copies of the policies, retaining one in the Mishawaka office and sending the other two to
the Reinsurer, to the attention of Liberty Northwest, in the Portland Oregon office.
	 
	 	H.	 	All customer services will be provided by the Reinsurer. Reinsurer agrees to
maintain the appropriate licenses as required by the
 state(s) for servicing this
business.
	 
	 	I.	 	All inspections, loss control and the associated costs will be the responsibility of
the Reinsurer.
	 
	 	J.	 	Audit coordination and the associated costs will be the responsibility of the Reinsurer.
	 
	 	K.	 	All statistical and loss reporting will be the responsibility of the Company and all
polices are subject to Liberty Mutual Insurance Company filings.
	 
	 	L.	 	All collection activity will be the responsibility of the Reinsurer. Any necessary
billing reports will be provided by Liberty Mutual Insurance Company, on an ad hoc basis.
	 
	 	M.	 	All policies will be direct bill only with standard installment and payment terms
Cancellation notices will be sent by the Company to the insured 10 days after invoice
matures. Endorsements will automatically roll into the pay plan if there are remaining
installments.
	 
	 	N.	 	The Reinsurer will be responsible for all claims handling.

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	 	O.	 	Commission will be paid to the Agent by the Company at a rate of 15%.
	 
	 	P.	 	All agencies and agents shall be properly licensed in the state(s) the Company is granting
coverage in prior to the effective date of the policy. The appointment will be submitted by
the Company to each state based the Company’s state guidelines. Submissions will take place
within 14 days of receiving all information required to process the appointments, including
but not limited, to active agent or agency state license, background check releases, and
signed contract addendum.

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In Witness Whereof, the parties hereto by their duly authorized representatives have executed this
Contract at:

Boston, Massachusetts this 28th day of September.

	 	 	 	 	 
	 	LIBERTY MUTUAL INSURANCE COMPANY

(with and on behalf of THE FIRST LIBERTY INSURANCE
CORPORATION, LIBERTY MUTUAL FIRE INSURANCE COMPANY, LM
INSURANCE CORPORATION, LIBERTY INSURANCE CORPORATION for
Business Classified as Business Solutions Group
only)

 	 
	 	By:  	/s/ 	 
	 	Its: 	Vice President 	 
	 	 	 	 

 

 

and at Portland, Oregon this 30th day of Sept 2005.

	 	 	 	 	 
	 	LIBERTY NORTHWEST INSURANCE CORPORATION

 	 
	 	By:  	/s/ 	 
	 	Its: 	 Pres & CEO 	 
	 	 	 	 
	 

BSG/LNW 2005 Quota Share Reinsurance Contract

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EXHIBIT A — Block and Association Number(s)

Block Numbers

6-920000 to 6-920199

Association Number

8720

BSG/LNW 2005 Quota Share Reinsurance Contract

Page 13 of 13exv10w147

EXHIBIT
10.147

CASUALTY EXCESS OF LOSS

REINSURANCE AGREEMENT

NO. RAMSumCX — 2003

EFFECTIVE JANUARY 1, 2003

between

BRIDGEFIELD CASUALTY INSURANCE COMPANY

BRIDGEFIELD EMPLOYERS INSURANCE COMPANY

(Liberty RAM)

Lakeland, Florida

(hereinafter referred to as the “Company”)

and

PEERLESS INSURANCE COMPANY

Keene, New Hampshire

(hereinafter referred to as the “Reinsurer”)

 

 

CASUALTY EXCESS OF LOSS REINSURANCE AGREEMENT NO. RAMSumCX — 2003

	 	 	 	 	 	 	 
	ARTICLE	 	CONTENTS	 	PAGE	 
	 
	 	PREAMBLE	 	 	1	 
	I
	 	BUSINESS COVERED	 	 	1	 
	II
	 	EFFECTIVE DATE AND TERMINATION	 	 	1	 
	III
	 	TERRITORY	 	 	3	 
	IV
	 	LIMIT AND RETENTION	 	 	3	 
	V
	 	WARRANTIES	 	 	4	 
	VI
	 	ULTIMATE NET LOSS	 	 	4	 
	VII
	 	LOSS IN EXCESS OF POLICY LIMITS	 	 	5	 
	VIII
	 	EXTRA CONTRACTUAL OBLIGATIONS	 	 	5	 
	IX
	 	EXCLUSIONS	 	 	6	 
	X
	 	SPECIAL ACCEPTANCES	 	 	9	 
	XI
	 	LOSS OCCURRENCE	 	 	10	 
	XII
	 	REINSURANCE PREMIUM	 	 	12	 
	XIII
	 	REPORTS AND REMITTANCES	 	 	12	 
	XIV
	 	NOTICE OF LOSS AND LOSS SETTLEMENTS	 	 	13	 
	XV
	 	SALVAGE AND SUBROGATION	 	 	14	 
	XVI
	 	ACCESS TO RECORDS	 	 	14	 
	XVII
	 	TAXES	 	 	14	 
	XVIII
	 	CURRENCY	 	 	14	 
	XIX
	 	OFFSET	 	 	15	 
	XX
	 	ERRORS OR OMISSIONS	 	 	15	 
	XXI
	 	INSOLVENCY	 	 	15	 
	XXII
	 	DISPUTE RESOLUTION	 	 	16	 
	XXIII
	 	SPECIAL TERMINATION	 	 	18	 
	XXIV
	 	RESERVES	 	 	19	 
	XXV
	 	SERVICE OF SUIT	 	 	21	 
	XXVI
	 	CONFIDENTIALITY CLAUSE	 	 	22	 
	XXVII
	 	AMENDMENTS	 	 	22	 
	XXVIII
	 	FEDERAL TERRORISM EXCESS RECOVERY CLAUSE	 	 	22	 
	XXIX
	 	ENTIRE AMENDMENTS	 	 	23	 

	 	 	 

	ATTACHMENTS:

	 	EXHIBIT A — FIRST EXCESS OF LOSS
	 

	 	EXHIBIT B — SECOND EXCESS OF LOSS
	 

	 	EXHIBIT C — THIRD EXCESS OF LOSS
	 

	 	APPENDIX A
	 

	 	APPENDIX B
	 

	 	APPENDIX C
	 

	 	INSOLVENCY FUNDS EXCLUSION CLAUSE.
	 

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

	 	NUCLEAR INCIDENT EXCLUSION CLAUSE — LIABILITY — REINSURANCE — CANADA.
	 

	 	NUCLEAR INCIDENT EXCLUSION CLAUSE — REINSURANCE — NO. 4.

 

 

CASUALTY EXCESS OF LOSS

REINSURANCE AGREEMENT

No. RAMSumCX—2003

(hereinafter referred to as the “Agreement”)

between

BRIDGEFIELD CASUALTY INSURANCE COMPANY

BRIDGEFIELD EMPLOYERS INSURANCE COMPANY

(Liberty RAM)

Lakeland, Florida

(hereinafter referred to as the “Company”)

and

PEERLESS INSURANCE COMPANY

Keene, New Hampshire

(hereinafter referred to as the “Reinsurer”)

ARTICLE I — BUSINESS COVERED

	A.	 	The Reinsurer shall indemnify the Company on an excess of loss basis in respect of the
Company’s Ultimate Net Loss paid or to be paid by the Company as a result of losses occurring
or claims made during the term of the Agreement for Policies in force as of January 1, 2003,
and new and renewal Policies becoming effective on or after said date, subject to the terms
and conditions contained herein.

	B.	 	This Agreement is solely between the Company and the Reinsurer, and nothing contained in this
Agreement shall create any obligations or establish any rights against the Reinsurer in favor
of any person or entity not a party hereto.

	C.	 	The term “Policies” shall mean each of the Company’s binders, policies and contracts of
insurance or reinsurance on the business covered hereunder.

	D.	 	Under this Agreement, the indemnity for reinsured loss applies only to Workers Compensation
and Employers Liability business written by the Company or ceded to the Company by:

Bridgefield Casualty Insurance Company, Bridgefield Employers Insurance Company, both of
Lakeland, Florida, except as excluded under Article IX — Exclusions of this Agreement.

ARTICLE II — EFFECTIVE DATE AND TERMINATION

	A.	 	This Agreement shall become effective at 12:01 a.m., Local Standard Time, with respect to
Policies in force at 12:01 a.m., Local Standard Time, January 1, 2003, and new and renewal
Policies becoming effective on or after said date. This Agreement may be

1. RAMSumCX — 2003

 

terminated at the close of any calendar year by either party giving to the other 90 days prior
written notice by certified mail of its intention to do so.

	B.	 	This Agreement shall apply to loss occurrence and claims made Policies in accordance with the
following provisions:

	 	1.	 	As respects Policies written on an occurrence basis:
	 
	 	 	 	This Agreement shall apply with respect to losses occurring on or after the inception
date of this Agreement.
	 
	 	2.	 	As respects Policies written on a claims made basis:
	 
	 	 	 	This Agreement shall apply to claims made Policies as respects claims received and
recorded by the Company or the insured, whichever comes first, at and after the
effective date of this Agreement, provided that each such Policy includes a specific
retroactive date and the occurrence which results in each such claim takes place on or
after such retroactive date, and provided further that such retroactive date is on or
after the inception date of the first of one or more consecutive claims made policies
issued by the Company or another insurer(s) to the named insured.

	C.	 	In the event of termination of this Agreement, the Company shall have the option of
continuing or terminating the liability in force at the date of termination as set forth
below. The Company may exercise such option provided written notice of the Company’s election
is given by certified mail to the Reinsurer prior to the date of termination. If the Company
does not choose to exercise its option prior to the date of termination, such option shall
revert to the Reinsurer.

	 	1.a. 	 	 As respects Policies written on an occurrence basis:
	 
	 	 	 	Upon termination of this Agreement, all Policies covered hereunder and in force at the
date of termination of this Agreement shall continue until their natural expiry,
cancellation or next anniversary of such business, whichever first occurs; but in no
case shall this reinsurance be extended for longer than one year, plus odd time, after
the termination date.
	 
	 	b.	 	As respects Policies written on a claims made basis:
	 
	 	 	 	Upon termination of this Agreement, the Reinsurer shall continue to be liable for
claims received or recorded by the Company or by the insured with respect to Policies
in force at the date of termination for the full original policy period until the
natural expiry, cancellation or next anniversary of such policies, not to exceed one
year, whichever comes first.

2. RAMSumCX — 2003

 

However, if the Company has provided an Extended Reporting Period within one year after
the date of termination on policies in force at the date of termination or if the
Extended Reporting Period is in force at the date of termination, the Reinsurer shall
continue to be liable for such extended reporting period.

	 	2.a. 	 	 As respects Policies written on an occurrence basis:
	 
	 	 	 	Upon termination of this Agreement, the Reinsurer shall be liable for losses occurring
prior to the date of termination; however, the Reinsurer shall have no liability for
losses occurring subsequent to the termination of this Agreement.
	 
	 	b.	 	As respects Policies written on a claims made basis:
	 
	 	 	 	Upon termination of this Agreement, the Reinsurer shall not be liable for claims
received or recorded by the Company or insured after the effective date of termination
unless such claim is received and recorded by the Company or the insured during an
Extended Reporting Endorsement Period in force at the date of termination.

ARTICLE III — TERRITORY

This Agreement applies to Policies issued by the Company within the United States of America, its
territories and possessions, and Canada and shall apply to losses covered hereunder wherever
occurring.

ARTICLE IV — LIMIT AND RETENTION

	A.	 	The limits and retentions provided under this Agreement are as set forth in Exhibits A, B and
C attached hereto and made a part of this Agreement.
	 
	B.	 	The Company’s retention and the Reinsurer’s limit of liability for
each Loss Occurrence, set forth in Section I of Exhibits A, B and C attached hereto and made
part of this Agreement, shall apply irrespective of the number of Policies affected or number
of hazards in one policy.
	 
	C.	 	Reinsurance of the Company’s retention, set forth in each Exhibit,
shall not be deducted in arriving at the Company’s Ultimate Net Loss herein.

3. RAMSumCX — 2003

 

ARTICLE V — WARRANTIES

Notwithstanding any other provision of this Agreement, Reinsurers’ liability under this Agreement
shall be limited to a maximum of:

	1.	 	$5,000,000 Maximum Any One Life for Worker’s Compensation;

	2.	 	Maximum Employers Liability limit $2,000,000.

ARTICLE VI — ULTIMATE NET LOSS

	A.	 	The term “Ultimate Net Loss” shall mean the actual sum paid by the Company in settlement of
losses or liability including interest accrued prior to judgment after making deductions for
all recoveries, including subrogation, salvages, and claims upon other reinsurances, whether
collectible or not, which inure to the benefit of the Reinsurer under this Agreement, and
shall include Loss Adjustment Expenses incurred by the Company; provided, however, that in the
event of the insolvency of the Company, Ultimate Net Loss shall mean the amount of loss and
Loss Adjustment Expenses for which the Company is liable, and payment by the Reinsurer shall
be made to the liquidator, receiver, conservator or statutory successor of the Company in
accordance with the provisions of Article XXI —  Insolvency of this Agreement.

	B.	 	The term “Ultimate Net Loss” shall include 90% of Loss In Excess of Policy Limits and 90% of
Extra Contractual Obligations, as defined herein, but only as respects business covered under
this Agreement.

	C.	 	The term “Loss Adjustment Expenses” shall mean all expenses incurred by the Company in
connection with the investigation, settlement, defense or litigation, including court costs
and post-judgment interest of any claim or loss covered by the Policies reinsured under this
Agreement and shall include Declaratory Judgement Expenses. However, the term “Loss Adjustment
Expense” shall not include the salaries and expenses of Company employees, office expenses and
other overhead expenses.

	D.	 	The term “Declaratory Judgment Expenses” shall mean all legal expenses, incurred in the
representation of the Company in litigation brought to determine the Company’s defense and/or
indemnification obligations, that are allocable to any specific claim or loss covered by
Policies reinsured under this Agreement. In addition, the Company shall promptly notify the
Reinsurer of any Declaratory Judgment Expenses subject to this Agreement.

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

4. RAMSumCX  —   2003

 

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

ARTICLE VII — LOSS IN EXCESS OF POLICY LIMITS

	A.	 	“Loss in Excess of Policy Limits” is defined as loss in excess of the limit of the original
Policy, such loss in excess of the limit having 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 reinsured or in the preparation or prosecution
of an appeal consequent upon such action.

	B.	 	However, this Article shall not apply where the loss has been incurred due to fraud by a
member of the Board of Directors or a corporate officer of the Company acting individually or
collectively or in collusion with any individual or corporation or any other organization or
party involved in the presentation, defense or settlement of any claim covered hereunder.

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

	D.	 	With respect to coverage provided under this Article, recoveries from any insurance or
reinsurance other than this Agreement shall be deducted to arrive at the amount of the
Company’s Ultimate Net Loss.

ARTICLE VIII — EXTRA CONTRACTUAL OBLIGATIONS

	A.	 	“Extra Contractual Obligations” are defined as those liabilities not covered under any other
provision of this Agreement and which arise from the handling of any claim on business covered
hereunder, such liabilities arising because of, but not limited to, the following: failure by
the Company to settle within the Policy limit, or by reason of alleged or actual negligence,
fraud or bad faith in rejecting an offer of settlement or in the preparation of the defense or
in the trial of any action against its insured or reinsured or in the preparation or
prosecution of an appeal consequent upon such action.

	B.	 	The date on which an Extra Contractual Obligation is incurred by the
Company shall be deemed, in all circumstances, to be the date of the original accident,
casualty, disaster or loss occurrence.

5. RAMSumCX —  2003

 

	C.	 	However, coverage hereunder as respects Extra Contractual Obligations shall not apply
where the loss has been incurred due to the fraud of a member of the Board of Directors or a
corporate officer of the Company acting individually or collectively or in collusion with any
individual or corporation or any other organization or party involved in the presentation,
defense or settlement of any claim covered hereunder.

	D.	 	Recoveries, collectibles or retention from any other form of insurance or reinsurance
including deductibles or self-insured retention which protect the Company against Extra
Contractual Obligations shall inure to the benefit of the Reinsurer and shall be deducted from
the total amount of Extra Contractual Obligations for purposes of determining the loss
hereunder.

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

ARTICLE IX — EXCLUSIONS

THIS AGREEMENT DOES NOT COVER:

	A.	 	THE FOLLOWING GENERAL CATEGORIES

	 	1.	 	Ex-gratia payments.
	 
	 	2.	 	Loss or damage caused directly or indirectly by: (a) enemy attack by armed forces
including action taken by military, naval or air forces in resisting an actual or an
immediately impending enemy attack; (b) invasion; (c) insurrection; (d) rebellion; (e)
revolution; (f) intervention; (g) civil war; and (h) usurped power.
	 
	 	3.	 	Reinsurance assumed by the Company, except intercompany reinsurance.
	 
	 	4.	 	Business derived from any Pool, Association, including Joint Underwriting
Association, Syndicate, Exchange, Plan, Fund or other facility directly as a member,
subscriber or participant, or indirectly by way of reinsurance or assessments; provided
this exclusion shall not apply to Automobile or Workers Compensation assigned risks which
may be currently or subsequently covered hereunder.
	 
	 	5.	 	Pollution Liability as per the Company’s original Policies and endorsements except
when a judicial entity invalidates the Company’s exclusion or in any jurisdiction whose
regulatory authorities have prohibited the exclusion.

6. RAMSumCX —  2003

 

	 	6.	 	Insolvency Funds as per the attached Insolvency Funds Exclusion Clause.
	 
	 	7.	 	Global Fortune 500 Risks as per the attached Appendix B.
	 
	 	8.	 	Pharmaceutical Risk per the attached Appendix C.
	 
	 	9.	 	Nuclear Incident Exclusion Clauses which are attached and made part of this
Agreement:

	 	a.	 	Nuclear Incident Exclusion Clause — Liability — Reinsurance — U.S.A.
	 
	 	b.	 	Nuclear Incident Exclusion Clause — Liability — Reinsurance — Canada.
	 
	 	c.	 	Nuclear Incident Exclusion Clause — Reinsurance — No. 4.

	B.	 	THE FOLLOWING INSURANCE COVERAGES

	 	1.	 	Fiduciary Liability.
	 
	 	2.	 	Surety and Credit insurance.
	 
	 	3.	 	Fidelity Bonds.
	 
	 	4.	 	Credit and Financial Guarantee.
	 
	 	5.	 	Securities and Exchange Liability.
	 
	 	6.	 	Malpractice insurance, Directors and Officers Liability insurance or any form of
Errors and Omissions or Professional Liability insurance, except as provided for under
the Company’s Underwriting Guidelines.
	 
	 	7.	 	Advertisers’, Broadcasters’ and Telecasters’ Liability as respects Personal Injury
Liability except as provided for under the Company’s Underwriting Guidelines.
	 
	 	8.	 	Kidnap, Extortion and Ransom Liability.
	 
	 	9.	 	Protection and Indemnity (Ocean Marine) except for hulls under 50 feet.
	 
	 	10.	 	Entertainment Business, defined as Feature Film and Major Motion Picture Studios,
Commercial Negative Film Coverages, Cast Coverage, Completion Bond and Television
Productions.

	B.	 	THE FOLLOWING RISKS AS RESPECTS WORKERS COMPENSATION AND EMPLOYERS LIABILITY

	 	1.	 	Operations under the jurisdiction of the U.S. Longshoremen’s and Harbor
Workers’ Act, the Jones Act and the Maritime Employers

7. RAMSumCX — 2003

 

Liability Act except when written as incidental coverages as defined in the Company’s
Underwriting Guidelines.

	 	2.	 	Operation of docks or wharves, other than small marinas or pleasure docks.
	 
	 	3.	 	The manufacturing, mining, refining, processing, distribution, installation, removal or
encapsulment of asbestos.
	 
	 	4.	 	Risks involving known exposure to asbestos.
	 
	 	5.	 	All railway operations except sidetrack agreements.
	 
	 	6. 	 	Amusement parks, carnivals or circuses, except county or country fairs.
	 
	 	7.	 	Subaqueous operations.
	 
	 	8.	 	Mining.
	 
	 	9.	 	Demolition of buildings or structures in excess of three stories or 50 feet in height.
	 
	 	10.	 	Shoring, underpinning or moving of buildings or structures.
	 
	 	11.	 	Manufacture, sale, rental, lease, erection or repair of scaffolds.
	 
	 	12.	 	Construction of bridges over 50 feet, and tunnels or dams.
	 
	 	13.	 	a.       Manufacturers or importers of fireworks, fuses, or any
substance, as defined and noted below, intended for use as an explosive.

	 	b.	 	Loading of fireworks, fuses, or any explosive substance defined below into
containers for use as explosive objects, propellant charges or detonation devices and the
storage thereof.
	 
	 	c.	 	Manufacturers or importers of any product in which fireworks, fuses, or any
explosive substance defined below is an ingredient.
	 
	 	d.	 	Handling, storage, transportation or use of fireworks, fuses, or any explosive
substance defined below.

NOTE: An explosive substance is defined as any substance manufactured for the express purpose
of exploding as differentiated from commodities used industrially and which are only
incidentally explosive.

	 	14.	 	Manufacture, production, refining, storage, wholesale distribution or transportation of
natural or artificial fuel gas, butane, propane or liquefied petroleum gases or gasoline,

8. RAMSumCX — 2003

 

except when written as incidental coverages as defined in the Company’s Underwriting
Guidelines.

	 	15.	 	Onshore and offshore gas and oil drilling operations.
	 
	 	16.	 	Ownership, maintenance or use of any airport or aircraft, including fueling, or
any device or machine intended for and/or aiding in the achievement of atmospheric
flight, projection or orbit except as respects corporate owned aircraft up to four
passengers.
	 
	 	17.	 	Municipalities, except for those with a population less than 25,000.
	 
	 	18.	 	Any actual or alleged liability whatsoever for any claim or claims in respect of
loss or losses directly or indirectly arising out of, resulting from or in consequence
of, or in any way involving asbestos, or any materials containing asbestos in whatever
form or quantity.

	D.	 	THE FOLLOWING RISKS AS RESPECTS TERRORISM
	 
	 	 	Terrorism losses arising from Airports, Bridges, Government Buildings, Nuclear Facilities,
Office Buildings over 25 stories, Security Services, Stadiums and Tunnels, Nuclear, Biological
and Chemical exposures, Explosive Manufacturing risks, Fertilizer mixing Plants, Railroads,
Amusement/Theme parks with greater than 5,000 person capacity, Distribution and
Manufacturing of weapons/munitions.
	 
	E.	 	The Company and the Reinsurer have agreed on the Company’s Underwriting Guidelines, as
respects policies covered under this Agreement. The Company shall advise the Reinsurer of any
change in such Underwriting Guidelines.
	 
	F.	 	In the event the Company is inadvertently bound on any risk which is excluded under this
Agreement, the reinsurance provided under this Agreement shall apply to such risk until
discovery by the Company within its Home Office of the existence of such risk and for 45 days
thereafter or for the period required by statutes, and shall then cease unless within such
period, the Company has received from the Reinsurer written notice of its approval of such
risk.

ARTICLE X — SPECIAL ACCEPTANCES

	A.	 	Policies which are beyond the terms, conditions or limitations of this Agreement may be
submitted to each Subscribing Reinsurer identified on the attached Interests and Liabilities
Agreement. Upon receipt of approval from all Subscribing Reinsurers, such acceptance shall
bind each Subscribing Reinsurer for its respective share in the interests and liabilities of
said risk. A Subscribing

9. RAMSumCX — 2003

 

Reinsurers’ failure to respond within 2 full business days shall be deemed approval of a risk
submitted for special acceptance.

	B.	 	When a policy is specially accepted, such policy shall be covered under the terms and
conditions of this Agreement, except as such terms shall be modified by such acceptance.
Premiums and losses derived from any special acceptance shall be included with other data for
rating purposes of this Agreement. Once a risk has been accepted under the provisions of this
Article, it will automatically be included at renewal unless there have been material changes
to the risk, in which case the risk will be resubmitted.

ARTICLE XI — LOSS OCCURRENCE

The provisions under this Article are set forth in the following Parts
I, II and III:

Part I — As respects Policies written on an occurrence basis:

The term “Loss Occurrence” shall mean any accident or occurrence or series of accidents or
occurrences arising out of any one event and happening within the term and scope of this
Agreement. Without limiting the generality of the foregoing, the term “Loss Occurrence” shall be
held to include:

	A.	 	As respects Products Bodily Injury and Products Property Damage Liability, injuries to all
persons and all damage to property of others occurring during a Policy Period and proceeding
from or traceable to the same causative agency shall be deemed to arise out of one Loss
Occurrence, and the date of such Loss Occurrence shall be deemed to be the commencing date of
the Policy Period. For the purpose of this provision, each annual period of a Policy which
continues in force for more than one year shall be deemed to be a separate Policy Period.

	B.	 	As respects Bodily Injury Liability (other than Automobile and Products), said term shall
also be understood to mean, as regards each original assured, injuries to one or more than one
person resulting from infection, contagion, poisoning, or contamination proceeding from or
traceable to the same causative agency.

	C.	 	As respects Property Damage Liability (other than Automobile and Products), said term shall
also, subject to Provisions 1. and 2. below, be understood to mean loss or losses caused by a
series of operations, events, or occurrences arising out of operations at one specific site
and which cannot be attributed to any single one of such operations, events or occurrences,
but rather to the cumulative effect of the same. In assessing each and every Loss Occurrence
within the foregoing definition, it is understood and agreed that:

	 	1.	 	the series of operations, events or occurrences shall not extend over a period
longer than 12 consecutive months; and

10. RAMSumCX — 2003

 

	 	2.	 	the Company may elect the date on which the period of not exceeding 12 consecutive
months shall be deemed to have commenced.

In the event that the series of operations, events or occurrences extend over a period longer
than 12 consecutive months, then each consecutive period of 12 months, the first of which
commences on the date elected under 2. above, shall form the basis of claim under this
Agreement.

	D.	 	As respects those Policies of the Company which provide aggregate limits of liability, the
total of all individual losses occurring during any one policy year which proceed from or are
traceable to the same causative agency.
	 
	E.	 	As respects an occupational or other disease or cumulative injury under Workers Compensation
and Employers Liability, each case of an employee contracting any disease for which the
Company may be liable shall be considered a separate and distinct occurrence and the date of
each occurrence shall be deemed to be as follows:

	 	1.	 	If the case is compensable under the Workers Compensation Law or any Occupational
Disease Compensation Act, the date of the beginning of the disability for which
compensation is payable;
	 
	 	2.	 	If the case is not compensable under the Workers Compensation Law or any
Occupational Disease Compensation Act, the date of the disability due to said disease
actually began;
	 
	 	3.	 	Where claim is made after employment has ceased, then the date of the cessation of
employment shall be deemed to be the date of disability;
	 
	 	4.	 	Notwithstanding the foregoing, in the incidence of a sudden catastrophic event not
exceeding 24 hours in duration including traumatic injury or death, all losses to all
employers shall be deemed an occurrence.

Part II — As respects Policies written on a claims made basis:

	A.	 	The term “Loss Occurrence” shall mean each claim or series of claims made to the Company, or
the insured, during the term of this Agreement arising out of one casualty or event.
	 
	B.	 	As respects a Loss Occurrence involving one or more Policies written on a claims made basis,
the date of Loss Occurrence for purposes of reinsurance, shall be considered the earliest date
when notice of claims is first received and recorded by the Company or the insured, whichever
comes first, and any related claims reported subsequent to such date shall be included in such
loss. However, if notice of claims is first received and recorded by the Company or the
insured

11. RAMSumCX — 2003

 

	 	 	during an Extended Reporting Period, the date of occurrence shall be deemed to be the last
day of the policy period.

Part III — As respects loss occurrence and claims-made Policies involved in the same Loss
Occurrence:

In the event a Loss Occurrence involving one or more Policies written on an occurrence basis and
one or more Policies written on a claims-made basis, it is understood that the earliest date on
which bodily injury or property damage occurs, and any related claims reported subsequent to such
date shall be included in such loss whether they are covered under occurrence or claims-made
Policies.

ARTICLE XII — REINSURANCE PREMIUM

The rates set forth in Section 3 of the attached Exhibits A, B and C, shall be applied to the
Company’s Subject Earned Premium for the business covered as stated in Paragraph E. of Article I —
Business Covered.

	B.	 	The term “Subject Earned Premium” as used herein is equal to the sum of the Net Premiums
Written on the business covered hereunder during the period under consideration, plus the
unearned premium reserve as respects premiums in force at the beginning of such period, less
the unearned premium reserve as respects premiums in force at the end of the period, said
unearned premium is to be calculated on a monthly pro rata basis.
	 
	C.	 	The term “Net Premiums Written” shall mean gross premiums written less returns, allowances
and reinsurances which inure to the benefit of the Reinsurer.

ARTICLE XIII — REPORTS AMD REMITTANCES

	A.	 	The Company shall furnish the Reinsurer with all necessary data respecting premiums and
losses for as long as one of the parties hereto has a claim against the other arising from
this Agreement.

	B.	 	Deposit premiums equal to 1/4 of the 100% of anticipated premium will be remitted on January
15, May 15, August 15 and November 15, 2003. The Company shall submit finalized accounts to
the Reinsurer on February 15, 2004, summarizing the actual Subject Earned premium for the
January 1, 2003 through December 31, 2003 coverage period. The difference between the deposit
premium and actual subject earned premium will be settled to/from the Company within 15 days
of February 15, 2004 However, in no event shall the annual adjusted premium be less than the
minimum premium for each layer.

	C.	 	Payment by the Reinsurer of its portion of loss and Loss Adjustment Expenses paid by the
Company shall be made by the Reinsurer to the

12. RAMSumCX — 2003

 

	 	 	Company within 15 days after proof of payment is received by the Reinsurer.

ARTICLE XIV — NOTICE OF LOSS AMD LOSS SETTLEMENT

	A.	 	The Company shall advise the Reinsurer promptly, but in no event later than 30 days, 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. Notwithstanding the foregoing, the Company shall give notice
to the Reinsurer once a claim exceeds the retention of the primary company or has the
potential to exceed the retention.
	 
	B.	 	The Company shall advise the Reinsurer of all claims which:

	 	1.	 	Are reserved by the Company for an amount in excess of 50% of its retention;
	 
	 	2.	 	Originate from fatal injuries;
	 
	 	3.	 	Originate from the following kinds of bodily injury:

	 	a.	 	Brain injuries resulting in impairment of physical function;
	 
	 	b.	 	Spinal injuries resulting in a partial or total paralysis of upper or
lower extremities;
	 
	 	c.	 	Amputation or permanent loss of use of upper or lower extremities;
	 
	 	d.	 	Severe burn injuries;
	 
	 	e.	 	Loss of sight in one or both eyes;
	 
	 	f.	 	All other injuries likely to result in a permanent disability rate of
50% or more.

	C.	 	All loss settlements made by the Company, provided they are within the terms of this
Contract, shall be unconditionally binding upon the Reinsurer, who agrees to pay all amounts
for which they may be liable immediately, but in no event later than 30 days, upon being
furnished by the Company with reasonable evidence of the amount due.

	D.	 	The Company shall have the responsibility to investigate, defend or negotiate settlements of
all claims and lawsuits related to Policies written by the Company and reinsured under this
Agreement. The Reinsurer, at its own expense, may associate with the Company in the defense
or control of any claim, suit or other proceeding which involves or is likely to involve the
reinsurance provided under this Agreement, and the Company shall cooperate in every respect in
the defense of any such claim, suit or proceeding.

13. RAMSumCX — 2003

 

ARTICLE XV — SALVAGE AND SUBROGATION

	A.	 	In the event of the payment of any indemnity by the Reinsurer under this Agreement, the
Reinsurer shall be subrogated, to the extent of such payment, to all of the rights of the
Company against any person or entity legally responsible for damages of the loss. The Company
agrees to enforce such rights; but, in case the Company refuses or neglects to do so, the
Reinsurer is hereby authorized and empowered to bring any appropriate action in the name of
the Company or their policyholders or otherwise to enforce such rights.
	 
	B.	 	From any amount recovered by subrogation, salvage or other means, there shall first be
deducted the expenses incurred in effecting the recovery. The balance shall then be used to
reimburse the excess carriers in the inverse order to that in which their respective
liabilities attached, before being used to reimburse the Company for its primary loss.

ARTICLE XVI — ACCESS TO RECORDS

The Reinsurer or its duly authorized representatives shall have the right to examine, at the
offices of the Company at a reasonable time, during the currency of this Agreement or anytime
thereafter, all books and records of the Company relating to business which is the subject of this
Agreement.

ARTICLE XVII — TAXES

The Company shall be liable for all taxes on premiums paid to the Reinsurer under this Agreement,
except income or profit taxes of the Reinsurer, and shall indemnify and hold the Reinsurer
harmless for any such taxes which the Reinsurer may become obligated to pay to any local, state or
federal taxing authority.

ARTICLE XVIII — CURRENCY

Wherever the word “dollars” or the “$” symbol is used in this Agreement, it shall mean dollars of
the United States of America, excepting in those cases where the Policy is issued by the Company
in Canadian dollars, in which case it shall mean dollars of Canada. In the event the Company is
involved in a loss requiring payment in United States and Canadian currency, the Company’s
retention and the limit of liability of the Reinsurer shall be apportioned between the two
currencies in the same proportion as the amount of net loss in each currency bears to the total
amount of net loss paid by the Company. For the purposes of this Agreement, where the Company
receives premiums or pays losses in currencies other than United States or Canadian currency, such
premiums and losses shall be converted into United States dollars at the actual

14. RAMSumCX — 2003

 

rates of exchange at which the premiums and losses are entered in the Company’s books.

ARTICLE XIX — OFFSET

Each party to this Agreement together with their successors or assigns shall have and may exercise,
at any time, the right to offset any balance or balances due the other (or, if more than one, any
other). Such offset may include balances due under this Agreement and any other agreements
heretofore or hereafter entered into between the parties regardless of whether such balances arise
from premiums, losses or otherwise, and regardless of capacity of any party, whether as assuming
insurer and/or ceding insurer, under the various agreements involved, provided however, that in the
event of insolvency of a party hereto, offsets shall only be allowed in accordance with the
provisions of the applicable law, statute or regulation governing such offset.

ARTICLE XX — ERRORS OR OMISSIONS

Errors or omissions of an administrative nature on the part of the Company shall not invalidate
the reinsurance under this Agreement provided such errors or omissions are corrected promptly, but
not later than 30 days after discovery thereof; but the liability of the Reinsurer under this
Agreement or any exhibits, addenda, or endorsements attached hereto shall in no event exceed the
limits specified herein nor be extended to cover any risks, perils, lines of business or classes
of insurance generally or specifically excluded herein.

ARTICLE XXI — INSOLVENCY

In the event of insolvency and the appointment of a conservator, liquidator, or statutory
successor of the Company the portion of any risk or obligation assumed by the Reinsurer shall be
payable to the conservator, liquidator, or statutory successor on the basis of claims allowed
against the insolvent Company by any court of competent jurisdiction or by any conservator,
liquidator, or statutory successor of the Company having authority to allow such claims, without
diminution because of that insolvency, or because the conservator, liquidator, or statutory
successor has failed to pay all or a portion of any claims. Payments by the Reinsurer shall be
made directly to the Company or to its conservator, liquidator, or statutory successor, except
where the contract of insurance or reinsurance specially provides another payee of such
reinsurance in the event of the insolvency of the Company. The conservator, liquidator, or
statutory successor of the Company shall give written notice of the pendency of a claim against
the Company indicating the policy or bond reinsured, within a reasonable time after such claim is
filed and the Reinsurer may interpose, at its own expense, in the proceeding where such claim is
to be adjudicated, any defense or defenses which it may deem available to the Company or its
conservator, liquidator, or statutory successor. The expense thus incurred by the Reinsurer shall
be payable subject to court approval out of the estate

15. RAMSumCX — 2003

 

of the insolvent 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 in conservation or liquidation,
solely as a result of the defense undertaken by the Reinsurer.

ARTICLE XXII — DISPUTE RESOLUTION

Part I — Choice Of Law And Forum

Any dispute arising under this Agreement shall be resolved in the State of New Hampshire, and the
laws of the State of New Hampshire, shall govern the interpretation and application of this
Agreement.

Part II — Mediation

If a dispute between the Company and the Reinsurer, arising out of the provisions of this
Agreement or concerning its interpretation or validity and whether arising before or after
termination of this Agreement has not been settled through negotiation, both parties agree to try
in good faith to settle such dispute by nonbinding mediation, before resorting to arbitration. The
parties shall choose a mediator within thirty (30) days of a written demand by either party for
mediation under Part II of this Article XXII. The mediator shall be a disinterested current or
retired insurance or reinsurance officer knowledgeable in reinsurance matters. The parties shall
have sixty (60) days from the selection of the mediator in which to mediate the dispute to
resolution. In the event that mediation fails to resolve the dispute, the parties shall proceed to
arbitration in accordance with Part III of this Article XXII.

Part III — Arbitration

	A.	 	Resolution of Disputes — As a condition precedent to any right arising hereunder, any dispute
not resolved by mediation between the Company and the Reinsurer arising out of the provisions
of this Agreement or concerning its interpretation or validity, whether arising before or
after termination of this Agreement, shall be submitted to arbitration in the manner
hereinafter set forth.

	B.	 	Composition of Panel — Unless the parties agree upon a single arbitrator within 15 days after
the receipt of a notice of intention to arbitrate, all disputes shall be submitted to an
arbitration panel composed of two arbitrators and an umpire chosen in accordance with
Paragraph C. hereof. The mediator from Part II many not be an arbitrator or an umpire.

	C.	 	Appointment of Arbitrators — The members of the arbitration panel shall be chosen from
disinterested current or retired insurance or reinsurance officers knowledgeable in
reinsurance matters. Unless a single arbitrator is agreed upon, the party requesting
arbitration (hereinafter referred to as the “claimant”) shall appoint an

16. RAMSumCX — 2003

 

	 	 	arbitrator and give written notice thereof by certified mail, to the other party (hereinafter
referred to as the “respondent”) together with his notice of intention to arbitrate.

Within 30 days after receiving such notice, the respondent shall also appoint an arbitrator
and notify the claimant thereof by certified mail. Before instituting a hearing, the two
arbitrators so appointed shall choose an umpire. If, within 20 days after the appointment of
the arbitrator chosen by the respondent, the two arbitrators fail to agree upon the
appointment of an umpire, each of them shall nominate three individuals to serve as umpire, of
whom the other shall decline two and the umpire shall be chosen from the remaining two by
drawing lots. The name of the individual first drawn shall be the umpire.

	D.	 	Failure of Party to Appoint an Arbitrator — If the respondent fails to appoint an arbitrator
within 30 days after receiving a notice of intention to arbitrate, the claimant’s arbitrator
shall appoint an arbitrator on behalf of the respondent, such arbitrator shall then, together
with the claimant’s arbitrator, choose an umpire as provided in Paragraph C. of Part III of
this Article.

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

	F.	 	If the Company is involved in a dispute under the terms of this Agreement and in one or more
separate disputes with one or more other reinsurers in which common questions of law or fact
are in issue, the Company or the Reinsurer, at its option, may join with such other reinsurers
in a common arbitration proceeding under the terms of this Article. If the Company and such
other reinsurers have commenced arbitration, the Reinsurer may at its option join such
proceeding for the determination of the dispute between the Company and the Reinsurer.

	G.	 	Submission of Dispute to Panel — Unless otherwise extended by the arbitration panel or agreed
to by the parties, each party shall submit its case to the panel within 30 days after the
selection of the umpire.

	H.	 	Procedure Governing Arbitration — All proceedings before the panel shall be informal and the
panel shall not be bound by the formal rules of evidence. The panel shall have the power to
fix all procedural rules relating to the arbitration proceeding. In

17. RAMSumCX — 2003

 

	 	 	reaching any decision, the panel shall give due consideration to the customs and usages of
the insurance and reinsurance business.

	I.	 	Arbitration Award — The arbitration panel shall render its decision within 60 days after
termination of the proceeding, which decision shall be in writing, stating the reasons
therefor. The decision of the majority of the panel shall be final and binding on the parties
to the proceeding.

	J.	 	Cost of Arbitration — Unless otherwise allocated by the panel, each party shall bear the
expense of its own arbitrator and shall jointly and equally bear with the other parties the
expense of the umpire and the arbitration.

ARTICLE XXIII — SPECIAL TERMINATION

	A.	 	Notwithstanding the termination provisions set forth in Article II — Effective Date and
Termination, this Agreement shall be:

	 	1.	 	Terminated automatically and simultaneously upon the happening of any of the
following events:

	 	a.	 	Entry of an order of liquidation, rehabilitation, receivership or
conservatorship with respect to the Company or the Reinsurer by any court or
regulatory authority;
	 
	 	b.	 	Assignment of this Agreement by either party;
	 
	 	c.	 	Any transfer of control of either party by change in ownership or
otherwise;
	 
	 	d.	 	General reinsurance of any portion of the Company’s business it retains
net for its own account, as determined under the provisions of this Agreement
without prior consent of the Reinsurer.

	 	2.	 	Terminated in accordance with the provisions set forth in this Paragraph, upon the
discovery of the following event:

	 	a.	 	A reduction of 50% or more of the Company’s policyholders surplus during
any calendar year. Such reduction shall be determined by calculating the difference
between the Company’s prior year annual statement and each subsequent quarterly
statutory statement within such current calendar year.

18. RAMSumCX — 2003

 

As respects the event set forth in this Paragraph A.2., the Company shall be obligated to
notify the Reinsurer in writing within 30 days after the filing of its quarterly statement.
Upon receipt of such notification the Reinsurer shall have the right to terminate this
Agreement, by giving not less than 30 days notice of its intention to do so.

	 	b.	 	A reduction of 50% or more of the Reinsurer’s policyholders surplus
during any calendar year. Such reduction shall be determined by calculating the
difference between the Reinsurer’s prior year annual statement and each subsequent
quarterly statutory statement within such current calendar year.

As respects the event set forth in this Paragraph A.2., the Reinsurer shall be obligated to
notify the Company in writing within 30 days after the filing of its quarterly statement.
Upon receipt of such notification the Company shall have the right to terminate this
Agreement, by giving not less than 30 days notice of its intention to do so.

	 	3.	 	Terminated by either party by giving not less than 30 days notice of its intention
to do so upon any transfer of control of either party by charge of ownership or
otherwise.

	B.	 	Any notice of termination pursuant to provisions set forth in Paragraph A.2. and A.3. above
shall be sent by certified mail, return receipt requested. Such notice period shall commence
upon the other party’s receipt of the notice of termination.

	C.	 	In the event of termination, the Reinsurer shall not be liable for losses occurring
subsequent to the date of termination.

ARTICLE XXIV — RESERVES

	A.	 	If a jurisdiction of the United States will not permit the Reassured, in the statements required
to be filed with its regulatory authority(ies), to receive full credit as admitted reinsurance for
any Reinsurer’s share of obligations, the Reassured shall forward to such Reinsurer a statement of
the Reinsurer’s share of such obligations. Upon receipt of such statement the Reinsurer shall
promptly apply for, and provide the Reassured with, a “clean,” unconditional and irrevocable Letter
of Credit, in the amount specified in the statement submitted, with terms and bank acceptable to
the regulatory authority(ies) having jurisdiction over the Reassured.

	B.	 	“Obligations,” as used in this Article, shall mean the sum of losses paid and allocated loss
adjustment expenses paid by the Reassured but not yet recovered from the Reinsurer, plus
reserves for reported losses, allocated loss adjustment expenses and losses incurred but not
reported.

19. RAMSumCX — 2003

 

	C.	 	The Reinsurer hereby agrees that the Letter of Credit will provide for automatic extension
of the Letter of Credit without amendment for one year from the date of expiration of said
Letter or any future expiration date unless thirty (30) days prior to any expiration the
issuing bank shall notify the Reassured by registered mail that the issuing bank elects not to
consider the Letter of Credit renewed for any additional period. An issuing bank, not a
“qualified bank” as defined by Regulation No. 133 promulgated by the Insurance Department of
the State of New York, shall provide sixty (60) days notice to the Reassured prior to any
expiration.

	D.	 	Notwithstanding any other provision of this Contract, the Reassured or any successor by
operation of law of the Reassured including, without limitation, any Liguidator,
rehabilitator, receiver or conservator of the Reassured may draw upon such credit, without
diminution because of the insolvency of any party hereto, at any time and undertakes to use
and apply such credit for one or more of the following purposes only:

	 	1.	 	To pay the Reinsurer’s share or to reimburse the Reassured for the Reinsurer’s
share of any obligations, as stipulated in the statement submitted by the Reassured to
the Reinsurer, which is due to the Reassured and not otherwise paid by the Reinsurer.
	 
	 	2.	 	In the event the Reassured has received effective notice of nonrenewal of the
Letter of Credit and the Reinsurer’s liability remains unliquidated and undischarged
thirty (30) days prior to the expiry date of the Letter of Credit and place such sums in
an interest bearing trust account to secure the continuing liabilities of the Reinsurer
under this Contract until a renewal Letter of Credit acceptable to the requlatory
authority(ies) having jurisdiction over the Reassured, or a substitute in lieu thereof
acceptable to the requlatory authority(ies) having jurisdiction over the Reassured, has
been received by the Reassured. The Reassured shall provide to the Reinsurer payment of
any interest thereon accruing from such account.
	 
	 	3.	 	To make refund of any sum which is in excess of the actual amount required for
Sections 1. and 2. of this paragraph.

	E.	 	At annual intervals or more frequently as determined by the Reassured, but never more
frequently than quarterly, the Reassured shall prepare a specific statement, for the sole
purpose of amending the Letter of Credit, of the Reinsurer’s share of any obligations. If the
statement shows that the Reinsurer’s share of obligations exceeds the balance of credit as of
the statement date, the Reinsurer shall, within thirty (30) days after receipt of notice of
such excess, secure delivery to the Reassured of an amendment of the Letter of Credit
increasing the amount of credit by the amount of such difference. If the statement shows,
however, that the Reinsurer’s share of obligations is less than the balance of credit as of
the statement date, the Reassured shall, within thirty (30)

20. RAMSumCX — 2003

 

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

	F.	 	The bank shall have no responsibility whatsoever in connection with the propriety of
withdrawals made by the Reassured or the disposition of funds withdrawn, except to assure
that withdrawals are made only upon the order of properly authorized representatives of the
Reassured. The Reassured shall incur no obligation to the bank in acting upon the credit,
other than as appears in the express terms thereof.

ARTICLE XXV — SERVICE OF SUIT

(Paragraphs A. and B. of this Clause only apply to Reinsurers domiciled outside of the United
States and/or unauthorized in the State of New York)

	A.	 	It is agreed that in the event of the failure of the Reinsurers hereon to pay any amount
claimed to be due hereunder, the Reinsurers hereon, at the request of the Reassured, will
submit to the jurisdiction of a Court of competent jurisdiction within the United States.
Nothing in this Article constitutes or should be understood to constitute a waiver of
Reinsurers’ rights to commence an action in any Court of competent jurisdiction in the United
States, to remove an action to a United States District Court, or to seek a transfer of a case
to another Court as permitted by the laws of the United States or of any State in the United
States. It is further agreed that service of process in such suit may be made upon Mendes and
Mount, 750 Seventh Avenue, New York, New York 10019-6829, and that in any suit instituted
against any one of them upon this Contract, such Reinsurer(s) will abide by the final decision
of such Court or of any Appellate Court in the event of an appeal.
	 
	B.	 	The above-named are authorized and directed to accept service of process on behalf of
Reinsurers in any such suit and/or upon the request of the Reassured to give a written
undertaking to the Reassured that they will enter a general appearance upon Reinsurers’ behalf
in the event such a suit shall be instituted.
	 
	C.	 	Further, pursuant to any statute of any state, territory or district of the United States
which makes provision therefore, Reinsurers hereon hereby designate the Superintendent,
Commissioner or Director of Insurance or their officer Specified for that purpose in the
statute, or his successor or successors in office, as their true and lawful attorney upon whom
may be served any lawful process in any action, suit or proceeding instituted by or on behalf
of the Reassured or any beneficiary hereunder arising out of this Contract of reinsurance, and
hereby designate the above-named as the person

21. RAMSumCX — 2003

 

	 	 	to whom the said officer is authorized to mail such process or a true copy thereof.

ARTICLE XXVI — CONFIDENTIALITY CLAUSE

All terms and conditions of this Agreement and any materials provided in the course of inspection
shall be kept confidential by the Reinsurer as against third parities, unless the disclosure is
required pursuant to process of law or unless the disclosure is to Reinsurer’s retrocessionaires,
financial auditors or governing regulatory bodies. Disclosing or using this information for any
purpose beyond the scope of this Agreement (Contract), or beyond the exceptions set forth above, is
expressly forbidden without the prior consent of the Company.

ARTICLE XXVII — AMENDMENTS

This Agreement may be amended by mutual consent of the parties expressed in an addendum; and such
addendum, when executed by both parties, shall be deemed to be an integral part of this Agreement
and binding on the parties hereto.

ARTICLE XXVIII — FEDERAL TERRORISM EXCESS RECOVERY CLAUSE

Any loss reimbursement the Company receives from the United States Government under the Terrorism
Risk Act of 2002 (“TRIA”) as a result of loss occurrences commencing during the term of this
Agreement shall apply as follows:

Except as provided below, any loss reimbursement under TRIA shall inure solely to the benefit of
the Company and shall be entirely disregarded in applying all of the provisions of this Agreement.

If one or more loss occurrences commencing during the term of this Agreement result(s) in
reinsurance recoveries to the Company under this Agreement and reimbursement under TRIA, and such
amounts, together with any other reinsurance recoveries to the Company for said loss
occurrence(s), exceed the total amount of “Insured Losses” to the Company, any amount in excess
thereof shall be held by the Company. The Company shall then reimburse the Reinsurer a portion of
such excess recovery in an amount equal to the proportion that the Reinsurer’s payment under this
Agreement bears to the total treaty reinsurance recoveries to the Company for Insured Losses for
said loss occurrence(s). Provided, however, that in no event shall such reimbursement exceed the
amount paid by the Reinsurer to the Company under this Agreement.

22. RAMSumCX — 2003

 

For purposes hereof, if a loss reimbursement received by the Company under TRIA is based on the
Company’s Insured Losses in more than one loss occurrence and neither the Secretary of the Treasury
nor his delagatee specifies the amount of loss allocable to each respective loss occurrence, the
reimbursement shall be pro-rated in the proportion that the Company’s Insured Losses in each loss
occurrence bears to the Company’s total Insured Losses resulting from all loss occurrences to which
the reimbursement applies.

For purposes of this endorsement: (i) :“TRIA” shall mean the Terrorism Risk Insurance Act of 2002
and any subsequent amendments thereto; and (ii) “Insured Loss(es)” shall have the same meaning as
set forth in Section 102 (5) of TRIA.

ARTICLE XXIX — ENTIRE AGREEMENT

This Agreement represents the entire agreement and understanding among the parties, and may not be
changed except in writing, signed by the parties. No other oral or written agreements or contracts
relating to the risks reinsured hereunder currently exist and/or are contemplated between the
parties.

23. RAMSumCX — 2003

 

IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed by their duly
authorized representative.

In Lakeland, Florida, this 30th day of September, 2003.

	 	 	 	 	 	 	 

	ATTEST:

	 	 
	 	BRIDGEFIELD CASUALTY INSURANCE COMPANY
	 	 
	 

	 	 	 	BRIDGEFIELD EMPLOYERS INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	/s/
	 	 	 	/s/	 	 

And in Keene, New Hampshire, this 29th day of September, 2003.

	 	 	 	 	 	 	 

	ATTEST:

	 	 
	 	PEERLESS INSURANCE COMPANY
	 	 
	 
	 	 	 	 	 	 
	/s/
	 	 	 	/s/	 	 

 

 

EXHIBIT A

FIRST EXCESS OF LOSS

IS ATTACHED TO AND

FORMS PART OF

REINSURANCE AGREEMENT NO. RAMSumCX — 2003

 

 

EXHIBIT A — FIRST EXCESS OF LOSS

	 	 	 	 	 	 	 
	SECTION	 	SUBJECT 	 	PAGE	 
	 
	1
	 	LIMIT AND RETENTION	 	 	A-l	 
	 
	2
	 	REINSTATEMENT	 	 	A-l	 
	 
	3
	 	REINSURANCE PREMIUM	 	 	A-2	 

 

 

EXHIBIT A — FIRST EXCESS OF LOSS (ACCOUNTING CODE RAMSumCX — 2003)

SECTION 1 — LIMIT AND RETENTION (amounts shown are in terms of Ultimate
Net Loss)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Reinsurer Liability with
	 	 	 	 	 	 	Respect to any one
	Profit Center	 	Retention	 	Loss Occurrence
	Summit
	 	$	1,000,000	 	 	$	4,000,000	 

SECTION 2 — REINSTATEMENT

	A.	 	It is understood and agreed that each claim hereunder reduces the amount of indemnity from
the time of occurrence of the loss by the sum paid, but any amount so exhausted is hereby
reinstated from the time the Loss Occurrence commences without payment of an additional
premium.

	B.	 	Notwithstanding the foregoing, Reinsurers’ liability for losses arising out of an act of
Terrorism shall be limited to one occurrence limit in all, any one Agreement Year.

C. An “Act of Terrorism” for purposes of this Agreement shall mean:

	 	1.	 	Any actual or threatened violent act or act harmful to human life, tangible or
intangible property or infrastructure directed towards or having the effect of (a)
influencing or protesting against any de jure or de facto government or policy thereof,
(b) intimidating, coercing or putting in fear a civilian population or section thereof
for the purpose of establishing or advancing a specific ideological, religious or
political system of thought, perpetrated by a specific individual or group directly or
indirectly through agents acting on behalf of said individual or group or (c) retaliating
against any country for direct or vicarious support by that country of any other
government or political system.
	 
	 	2.	 	Any act deemed or declared by the Federal Office of Homeland Security to be
terrorism or a terrorist act shall also be considered an “Act of Terrorism” for purposes
of this Agreement.

	D.	 	The term “Agreement Year” shall mean each consecutive twelve month period commencing January
1 and ending December 31.

A-1

 

SECTION 3 — REINSURANCE PREMIUM

	 	 	 	 	 
	Profit Center	 	Rate
	Summit
	 	 	3.45	%

Total Subject Premium to the Layer: $420,490,000

Composite Rate: 3.45% Subject Net Earned premium Income ($14,506,905)

A-2

 

EXHIBIT B

SECOND EXCESS OF LOSS

IS ATTACHED TO AND

FORMS PART OF

REINSURANCE AGREEMENT NO. RAMSumCX — 2003

 

 

EXHIBIT B — SECOND EXCESS OF LOSS

	 	 	 	 	 	 	 	 	 
	SECTION	 	SUBJECT	 	PAGE
	 	 	 	 	 
	 	 	 	 
	 	1	 	 	LIMIT AND RETENTION
	 	 	B-l	 
	 	 	 	 	 
	 	 	 	 
	 	2	 	 	REINSTATEMENT
	 	 	B-l	 
	 	 	 	 	 
	 	 	 	 
	 	3	 	 	REINSURANCE PREMIUM
	 	 	B-2	 

 

 

EXHIBIT B — SECOND EXCESS OF LOSS (ACCOUNTING CODE RAMSumCX — 2003)

SECTION 1 — LIMIT AND RETENTION (amounts shown are in terms of Ultimate Net Loss)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Reinsurer Liability with
	 	 	 	 	 	 	Respect to any one
	Profit Center	 	Retention	 	Loss Occurrence
	 	 	 	 	 
	 	 	 	 
	Summit	 	$5,000,000
	 	$	5,000,000	 

SECTION 2 — REINSTATEMENT

	A.	 	It is understood and agreed that each claim hereunder reduces the amount of indemnity from
the time of occurrence of the loss by the sum paid, but any amount so exhausted is hereby
reinstated from the time the Loss Occurrence commences without payment of an additional
premium.

	B.	 	Notwithstanding the foregoing, Reinsurers’ liability for losses arising out of an act of
Terrorism shall be limited to one occurrence limit in all, any one Agreement Year.

C. An “Act of Terrorism” for purposes of this Agreement shall mean:

	 	1.	 	Any actual or threatened violent act or act harmful to human life, tangible or
intangible property or infrastructure directed towards or having the effect of (a)
influencing or protesting against any de jure or de facto government or policy thereof,
(b) intimidating, coercing or putting in fear a civilian
population or section thereof for the purpose of establishing or advancing a specific
ideological, religious or political system of thought, perpetrated by a specific
individual or group directly or indirectly through agents acting on behalf of said
individual or group or (c) retaliating against any country for direct or vicarious
support by that country of any other government or political system.
	 
	 	2.	 	Any act deemed or declared by the Federal Office of Homeland Security to be
terrorism or a terrorist act shall also be considered an “Act of Terrorism” for purposes
of this Agreement.

	D.	 	The term “Agreement Year” shall mean each consecutive twelve month period commencing January
1 and ending December 31.

SECTION 3 — REINSURANCE PREMIUM

	 	 	 	 	 
	Profit Center	 	Rate
	 
	 	 	 	 
	Summit
	 	 	0.25	%

B-1

 

Total Subject Premium to the Layer: $420,490,000

Composite Rate: .25% Subject Net Earned Premium Income ($1,051,225)

B-2

 

EXHIBIT C

THIRD EXCESS OF LOSS

IS ATTACHED TO AND

FORMS PART OF

REINSURANCE AGREEMENT NO. RAMSumCX — 2003

 

 

EXHIBIT C — THIRD EXCESS OF LOSS

	 	 	 	 	 	 	 	 	 
	SECTION	 	SUBJECT	 	PAGE
	 	 	 	 	 
	 	 	 	 
	 	1	 	 	LIMIT AND RETENTION
	 	 	C-l	 
	 	 	 	 	 
	 	 	 	 
	 	2	 	 	REINSTATEMENT
	 	 	C-l	 
	 	 	 	 	 
	 	 	 	 
	 	3	 	 	REINSURANCE PREMIUM
	 	 	C-2	 

 

 

EXHIBIT C — THIRD EXCESS OF LOSS
(ACCOUNTING CODE RAMSumCX — 2003)

SECTION 1 — LIMIT AND RETENTION (amounts shown are in terms of Ultimate Net Loss)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Reinsurer Liability with
	 	 	 	 	 	 	Respect to any one
	Profit Center	 	Retention	 	Loss Occurrence
	 
	 	 	 	 	 	 	 	 
	Summit
	 	$	10,000,000	 	 	$	15,000,000	 

SECTION 2 — REINSTATEMENT

	A.	 	It is understood and agreed that each claim hereunder reduces the amount of indemnity from
the time of occurrence of the loss by the sum paid, but any amount so exhausted is hereby
reinstated from the time the Loss Occurrence commences hereon.
	 
	B.	 	For each amount so reinstated the Company agrees to pay an additional premium calculated
at pro rata of the annual premium hereon, being pro rata only as to the fraction of the limit
of liability of this Agreement (i.e., the fraction of 100% of $15,000,000) so
reinstated and 100% as to the term.
	 
	C.	 	Nevertheless, the Reinsurer’s liability hereunder shall never exceed $15,000,000 in respect
of any one Loss Occurrence and shall be further limited in all during the term of this
Agreement to $30,000,000. Notwithstanding the foregoing, Reinsurers’ liability for losses
arising out of an act of Terrorism shall be limited to only $5,000,000 in the aggregate, any
one Agreement Year.
	 
	D.	 	An “Act of Terrorism” for purposes of this Agreement shall mean:

	 	1.	 	Any actual or threatened violent act or act harmful to human life, tangible or
intangible property or infrastructure directed towards or having the effect of (a)
influencing or protesting against any de jure or de facto government or policy thereof,
(b) intimidating, coercing or putting in fear a civilian population or section thereof
for the purpose of establishing or advancing a specific ideological, religious or
political system of thought, perpetrated by a specific individual or group directly or
indirectly through agents acting on behalf of said individual or group or (c)
retaliating against any country for direct or vicarious support by that country of any
other government or political system.

C-1

 

	 	2.	 	Any act deemed or declared by the Federal Office of Homeland Security to be terrorism
or a terrorist act shall also be considered an “Act of Terrorism” for purposes of this
Agreement.

	E.	 	The term “Agreement Year” shall mean each consecutive twelve month period commencing January
1 and ending December 31.

SECTION 3 — REINSURANCE PREMIUM

	 	 	 	 	 
	Profit Center	 	Rate
	 
	 	 	 	 
	Summit
	 	 	0.2520	%

Total Subject Premium to the Layer: $420,490,000

Composite Rate: .2520% Subject Net Earned Premium Income ($1,059,635)

C-2

 

	 	 	APPENDIX A 

	Definition of Company:

	For purposes of Article I or any Articles, wherever the word “Company” is used, the Company is
defined to include the following Profit Center.

	 	 	 
	Profit Center	 	Legal Entities
	 
	 	 
	Summit:

	 	Bridgefield Casualty Insurance Company, and Bridgefield
Employers Insurance Company, WC only, all States

 

APPENDIX B — Fortune’s Global 500” list

	 	 	 	 	 	 	 	 	 
	Company	 	Rank	 	Revenues [USD mio]
	3M
	 	 	316	 	 	 	16 079	 
	ABB
	 	 	194	 	 	 	23 726	 
	Abbey National
	 	 	280	 	 	 	17 798	 
	Abbott Laboratories
	 	 	309	 	 	 	16 285	 
	ABN AMRO Holding
	 	 	90	 	 	 	39 703	 
	Accenture
	 	 	380	 	 	 	13 348	 
	Adecco
	 	 	313	 	 	 	16 147	 
	AdvancePCS
	 	 	387	 	 	 	13 107	 
	Aegon
	 	 	146	 	 	 	28 562	 
	AEON
	 	 	196	 	 	 	23 621	 
	Aetna
	 	 	178	 	 	 	25 191	 
	Agricultural Bank of China
	 	 	471	 	 	 	10 657	 
	Air France Group
	 	 	454	 	 	 	11 076	 
	Akzo Nobel
	 	 	407	 	 	 	12 636	 
	Albertson’s
	 	 	100	 	 	 	37 931	 
	Alcan
	 	 	408	 	 	 	12 626	 
	Alcatel
	 	 	207	 	 	 	22 704	 
	Alcoa
	 	 	205	 	 	 	22 859	 
	Allegheny Energy
	 	 	488	 	 	 	10 379	 
	Alliance Unichem
	 	 	478	 	 	 	10 533	 
	Allianz
	 	 	18	 	 	 	85 929	 
	Allstate
	 	 	144	 	 	 	28 865	 
	Almanij
	 	 	272	 	 	 	18 055	 
	Alstom
	 	 	228	 	 	 	20 734	 
	Amerada Hess
	 	 	376	 	 	 	13 413	 
	American Electric Power
	 	 	36	 	 	 	61 257	 
	American Express
	 	 	209	 	 	 	22 582	 
	American Intl. Group
	 	 	34	 	 	 	62 402	 
	AmerisourceBergen
	 	 	319	 	 	 	15 823	 
	AMR
	 	 	258	 	 	 	18 963	 
	Anglo American
	 	 	341	 	 	 	14 786	 
	Anheuser-Busch
	 	 	397	 	 	 	12 912	 
	Anthem
	 	 	486	 	 	 	10 445	 
	AOL Time Warner
	 	 	98	 	 	 	38 234	 
	Aquila
	 	 	87	 	 	 	40 377	 
	Arbed
	 	 	448	 	 	 	11 195	 
	Arcelor
	 	 	391	 	 	 	13 005	 
	Archer Daniels Midland
	 	 	240	 	 	 	20 051	 
	Arrow Electronics
	 	 	498	 	 	 	10 128	 
	Asahi Glass
	 	 	499	 	 	 	10 103	 
	Asahi Mutual Life Insurance
	 	 	119	 	 	 	33 143	 
	Assicurazioni Generali
	 	 	50	 	 	 	51 394	 
	AstraZeneca
	 	 	301	 	 	 	16 480	 
	AT&T
	 	 	40	 	 	 	59 142	 
	AutoNation
	 	 	241	 	 	 	19 989	 

B-1

 

	 	 	 	 	 	 	 	 	 
	Company	 	Rank	 	Revenues [USD mio]
	Aventis
	 	 	230	 	 	 	20 544	 
	Aviva
	 	 	48	 	 	 	52 318	 
	Avnet
	 	 	402	 	 	 	12 814	 
	AXA
	 	 	30	 	 	 	65 580	 
	BAE Systems
	 	 	390	 	 	 	13 020	 
	Banco Bilbao Vizcaya Argentaria
	 	 	192	 	 	 	23 848	 
	Banco Bradesco
	 	 	337	 	 	 	14 953	 
	Banco Do Brasil
	 	 	437	 	 	 	11 685	 
	Bank of America Corp.
	 	 	47	 	 	 	52 641	 
	Bank Of China
	 	 	277	 	 	 	17 869	 
	Bank of Montreal
	 	 	449	 	 	 	11 185	 
	Bank of Nova Scotia
	 	 	366	 	 	 	13 673	 
	Bank One Corp.
	 	 	186	 	 	 	24 527	 
	Bankgesellschaft Berlin
	 	 	473	 	 	 	10 618	 
	Barclays
	 	 	154	 	 	 	27 569	 
	BASF
	 	 	142	 	 	 	29 103	 
	Bayer
	 	 	158	 	 	 	27 111	 
	Bayerische Landesbank
	 	 	320	 	 	 	15 795	 
	BCE
	 	 	339	 	 	 	14 873	 
	BellSouth
	 	 	189	 	 	 	24 130	 
	Berkshire Hathaway
	 	 	101	 	 	 	37 668	 
	Bertelsmann
	 	 	276	 	 	 	17 887	 
	Best Buy
	 	 	247	 	 	 	19 597	 
	BHP Billiton
	 	 	281	 	 	 	17 789	 
	BMW
	 	 	112	 	 	 	34 444	 
	BNP Paribas
	 	 	44	 	 	 	55 044	 
	Boeing
	 	 	42	 	 	 	58 198	 
	Bombardier
	 	 	360	 	 	 	13 896	 
	Bouygues
	 	 	266	 	 	 	18 334	 
	BP
	 	 	4	 	 	 	174 218	 
	Bridgestone
	 	 	285	 	 	 	17 566	 
	Bristol-Myers Squibb
	 	 	218	 	 	 	21 717	 
	British Airways
	 	 	428	 	 	 	11 943	 
	British American Tobacco
	 	 	271	 	 	 	18 144	 
	BT
	 	 	139	 	 	 	29 958	 
	Canadian Imperial Bank of Commerce
	 	 	361	 	 	 	13 889	 
	Canon
	 	 	190	 	 	 	23 936	 
	Cardinal Health
	 	 	61	 	 	 	47 948	 
	Carrefour
	 	 	35	 	 	 	62 225	 
	Carso Global Telecom
	 	 	430	 	 	 	11 890	 
	Caterpillar
	 	 	232	 	 	 	20 450	 
	Cathay Life
	 	 	440	 	 	 	11 591	 
	Central Japan Railway
	 	 	460	 	 	 	10 933	 
	Centrica
	 	 	270	 	 	 	18 161	 
	ChevronTexaco
	 	 	14	 	 	 	99 699	 
	China Construction Bank
	 	 	389	 	 	 	13 083	 
	China Mobile Communications
	 	 	287	 	 	 	17 406	 
	China National Petroleum
	 	 	81	 	 	 	41 499	 

B-2

 

	 	 	 	 	 	 	 	 	 
	Company	 	Rank	 	Revenues [USD mio]
	China Telecommunications
	 	 	214	 	 	 	22 272	 
	Chinese Petroleum
	 	 	467	 	 	 	10 781	 
	Chubu Electric Power
	 	 	279	 	 	 	17 826	 
	Cigna
	 	 	254	 	 	 	19 115	 
	Cinergy
	 	 	396	 	 	 	12 923	 
	Circuit City Stores
	 	 	403	 	 	 	12 792	 
	Cisco Systems
	 	 	213	 	 	 	22 293	 
	Citigroup
	 	 	11	 	 	 	112 022	 
	CMS Energy
	 	 	393	 	 	 	12 977	 
	CNP Assurances
	 	 	238	 	 	 	20 099	 
	Coca-Cola
	 	 	239	 	 	 	20 092	 
	Coca-Cola Enterprises
	 	 	322	 	 	 	15 700	 
	COFCO
	 	 	392	 	 	 	13 004	 
	Coles Myer
	 	 	406	 	 	 	12 643	 
	Commerzbank
	 	 	193	 	 	 	23 778	 
	Compaq Computer
	 	 	117	 	 	 	33 554	 
	Compass Group
	 	 	409	 	 	 	12 552	 
	Computer Sciences
	 	 	443	 	 	 	11 426	 
	ConAgra
	 	 	156	 	 	 	27 194	 
	Conoco
	 	 	122	 	 	 	32 795	 
	Consignia
	 	 	425	 	 	 	12 040	 
	Corus Group
	 	 	452	 	 	 	11 087	 
	Cosmo Oil
	 	 	474	 	 	 	10 612	 
	Costco Wholesale
	 	 	111	 	 	 	34 797	 
	Credit Agricole
	 	 	107	 	 	 	35 669	 
	Credit Lyonnais
	 	 	259	 	 	 	18 848	 
	Credit Suisse
	 	 	31	 	 	 	64 205	 
	CVS
	 	 	215	 	 	 	22 241	 
	Dai Nippon Printing
	 	 	480	 	 	 	10 492	 
	Daido Life Insurance
	 	 	479	 	 	 	10 527	 
	Daiei
	 	 	237	 	 	 	20 113	 
	Dai-ichi Mutual Life insurance
	 	 	76	 	 	 	43 145	 
	DaimlerChrysler
	 	 	7	 	 	 	136 897	 
	Daiwa Bank Holdings
	 	 	463	 	 	 	10 888	 
	Dana
	 	 	484	 	 	 	10 469	 
	Danske Bank Group
	 	 	461	 	 	 	10 912	 
	Deere
	 	 	382	 	 	 	13 293	 
	Delhaize ‘Le Lion’
	 	 	245	 	 	 	19 629	 
	Dell Computer
	 	 	131	 	 	 	31 168	 
	Delphi
	 	 	166	 	 	 	26 088	 
	Delta Air Lines
	 	 	362	 	 	 	13 879	 
	Denso
	 	 	252	 	 	 	19 203	 
	Dentsu
	 	 	348	 	 	 	14 311	 
	Deutsche Bahn
	 	 	356	 	 	 	14 079	 
	Deutsche Bank
	 	 	27	 	 	 	66 840	 
	Deutsche Post
	 	 	130	 	 	 	31 302	 
	Deutsche Telekom
	 	 	75	 	 	 	43 261	 
	Dexia Group
	 	 	256	 	 	 	19 050	 

B-3

 

	 	 	 	 	 	 	 	 	 
	Company	 	Rank	 	Revenues [USD mio]
	Diageo
	 	 	262	 	 	 	18 605	 
	Dior (Christian)
	 	 	446	 	 	 	11 254	 
	Dominion Resources
	 	 	477	 	 	 	10 558	 
	Dow Chemical
	 	 	152	 	 	 	27 805	 
	Duke Energy
	 	 	39	 	 	 	59 503	 
	DuPont de Nemours (E.I.)
	 	 	172	 	 	 	25 370	 
	Dynegy
	 	 	78	 	 	 	42 242	 
	DZ Bank
	 	 	168	 	 	 	25 987	 
	E. ON
	 	 	28	 	 	 	66 453	 
	EADS
	 	 	153	 	 	 	27 580	 
	East Japan Railway
	 	 	233	 	 	 	20 341	 
	Eastman Kodak
	 	 	383	 	 	 	13 234	 
	Edison
	 	 	353	 	 	 	14 140	 
	Edison International
	 	 	420	 	 	 	12 184	 
	El Paso
	 	 	43	 	 	 	57 475	 
	Électricité De France
	 	 	102	 	 	 	36 461	 
	Electrolux
	 	 	386	 	 	 	13 131	 
	Electronic Data Systems
	 	 	221	 	 	 	21 543	 
	Eli Lilly
	 	 	441	 	 	 	11 543	 
	Emerson Electric
	 	 	326	 	 	 	15 480	 
	Endesa
	 	 	358	 	 	 	13 948	 
	Enel
	 	 	169	 	 	 	25 773	 
	EHI
	 	 	71	 	 	 	44 637	 
	Enron
	 	 	6	 	 	 	138 718	 
	Exelon
	 	 	333	 	 	 	15 140	 
	Exxon Mobil
	 	 	2	 	 	 	191 581	 
	Fannie Mae
	 	 	52	 	 	 	50 803	 
	Farmland Industries
	 	 	434	 	 	 	11 763	 
	Federated Dept. Stores
	 	 	292	 	 	 	16 895	 
	FedEx
	 	 	246	 	 	 	19 629	 
	Fiat
	 	 	49	 	 	 	51 944	 
	FleetBoston
	 	 	253	 	 	 	19 190	 
	Fleming
	 	 	325	 	 	 	15 628	 
	Flextronics International
	 	 	388	 	 	 	13 105	 
	Foncière Euris
	 	 	231	 	 	 	20 490	 
	Ford Motor
	 	 	5	 	 	 	162 412	 
	Fortis
	 	 	85	 	 	 	40 529	 
	France Télécom
	 	 	97	 	 	 	38 530	 
	Franz Haniel
	 	 	269	 	 	 	18 213	 
	Freddie Mac
	 	 	108	 	 	 	35 523	 
	Fuji Heavy Industries
	 	 	462	 	 	 	10 897	 
	Fuji Photo Film
	 	 	251	 	 	 	19 203	 
	Fujitsu
	 	 	83	 	 	 	40 044	 
	Gap
	 	 	363	 	 	 	13 848	 
	Gaz de France
	 	 	400	 	 	 	12 857	 
	Gazprom
	 	 	236	 	 	 	20 148	 
	General Dynamics
	 	 	421	 	 	 	12 163	 
	General Electric
	 	 	9	 	 	 	125 913	 

B-4

 

	 	 	 	 	 	 	 	 	 
	Company	 	Rank	 	Revenues [USD mio]
	General Motors
	 	 	3	 	 	 	177 260	 
	George Weston
	 	 	318	 	 	 	15 923	 
	Georgia-Pacific
	 	 	173	 	 	 	25 309	 
	GlaxoSmithKline
	 	 	140	 	 	 	29 506	 
	Goldman Sachs Group
	 	 	132	 	 	 	31 138	 
	Goodyear Tire & Rubber
	 	 	352	 	 	 	14 147	 
	Great Atl. & Pacific Tea
	 	 	458	 	 	 	10 973	 
	Groupama
	 	 	417	 	 	 	12 264	 
	Groupe Auchan
	 	 	199	 	 	 	23 450	 
	Groupe Caisse d’ Épargne
	 	 	297	 	 	 	16 693	 
	Groupe Danone
	 	 	394	 	 	 	12 958	 
	Groupe Pinault-Printemps
	 	 	181	 	 	 	24 894	 
	Halliburton
	 	 	377	 	 	 	13 405	 
	Hartford Fin. Services
	 	 	332	 	 	 	15 147	 
	HBOS
	 	 	150	 	 	 	27 839	 
	HCA
	 	 	275	 	 	 	17 953	 
	Henkel
	 	 	436	 	 	 	11 695	 
	Hewlett-Packard
	 	 	70	 	 	 	45 226	 
	Hitachi
	 	 	32	 	 	 	63 931	 
	Home Depot
	 	 	46	 	 	 	53 553	 
	Honda Motor
	 	 	41	 	 	 	58 882	 
	Honeywell Intl.
	 	 	195	 	 	 	23 652	 
	Household International
	 	 	359	 	 	 	13 916	 
	HSBC Holding PLC
	 	 	64	 	 	 	46 424	 
	Humana
	 	 	493	 	 	 	10 195	 
	HypoVereinsbank
	 	 	91	 	 	 	39 405	 
	Hyundai
	 	 	219	 	 	 	21 702	 
	Hyundai Motor
	 	 	133	 	 	 	30 864	 
	Idemitsu Kosan
	 	 	323	 	 	 	15 679	 
	Indian Oil
	 	 	226	 	 	 	20 916	 
	Industrial & Commercial Bank of China
	 	 	243	 	 	 	19 828	 
	ING Group
	 	 	20	 	 	 	82 999	 
	Ingram Micro
	 	 	179	 	 	 	25 187	 
	Intel
	 	 	162	 	 	 	26 539	 
	International Paper
	 	 	163	 	 	 	26 363	 
	IntesaBci
	 	 	242	 	 	 	19 946	 
	Intl. Business Machines
	 	 	19	 	 	 	85 866	 
	Isuzu Motors
	 	 	404	 	 	 	12 778	 
	Itausa
	 	 	492	 	 	 	10 239	 
	Itochu
	 	 	17	 	 	 	91 177	 
	Ito-Yokado
	 	 	161	 	 	 	26 823	 
	J. Sainsbury
	 	 	184	 	 	 	24 575	 
	J.C. Penney
	 	 	124	 	 	 	32 557	 
	J.P. Morgan Chase
	 	 	54	 	 	 	50 429	 
	Japan Airlines
	 	 	399	 	 	 	12 866	 
	Japan Energy
	 	 	385	 	 	 	13 203	 
	Japan Postal Service
	 	 	234	 	 	 	20 281	 
	Japan Telecom
	 	 	368	 	 	 	13 628	 

B-5

 

	 	 	 	 	 	 	 	 	 
	Company	 	Rank	 	Revenues [USD mio]
	Japan Tobacco
	 	 	307	 	 	 	16 331	 
	Johnson & Johnson
	 	 	121	 	 	 	33 004	 
	Johnson Controls
	 	 	264	 	 	 	18 427	 
	Kajima
	 	 	302	 	 	 	16 478	 
	Kansai Electric Power
	 	 	224	 	 	 	21 207	 
	KarstadtQuelle
	 	 	347	 	 	 	14 388	 
	KDDI
	 	 	208	 	 	 	22 664	 
	Kimberly-Clark
	 	 	345	 	 	 	14 524	 
	Kingfisher
	 	 	314	 	 	 	16 142	 
	Kmart
	 	 	104	 	 	 	36 151	 
	Korea Electric Power
	 	 	324	 	 	 	15 674	 
	Kreditanstalt fur Wiederaufbau
	 	 	481	 	 	 	10 484	 
	Kroger
	 	 	56	 	 	 	50 098	 
	KT
	 	 	413	 	 	 	12 349	 
	Kyushu Electric Power
	 	 	438	 	 	 	11 661	 
	L.M. Ericsson
	 	 	210	 	 	 	22 416	 
	La Poste
	 	 	329	 	 	 	15 249	 
	Lafarge
	 	 	416	 	 	 	12 267	 
	Lagardère Groupe
	 	 	429	 	 	 	11 906	 
	Landesbank Baden-Wurttemberg
	 	 	294	 	 	 	16 877	 
	Lear
	 	 	369	 	 	 	13 625	 
	Legal & General
	 	 	374	 	 	 	13 541	 
	Lehman Brothers Hldgs.
	 	 	212	 	 	 	22 392	 
	LG Electronics
	 	 	202	 	 	 	23 137	 
	LG International
	 	 	248	 	 	 	19 516	 
	Liberty Mutual Group
	 	 	349	 	 	 	14 256	 
	Lloyds TSB Group
	 	 	206	 	 	 	22 823	 
	Lockheed Martin
	 	 	182	 	 	 	24 793	 
	Loews
	 	 	260	 	 	 	18 799	 
	L’ Oréal
	 	 	415	 	 	 	12 305	 
	Lowe’s
	 	 	216	 	 	 	22 111	 
	Lucent Technologies
	 	 	180	 	 	 	25 132	 
	Lufthansa Group
	 	 	338	 	 	 	14 946	 
	Lukoil
	 	 	422	 	 	 	12 106	 
	LVMH
	 	 	459	 	 	 	10 951	 
	Magna International
	 	 	456	 	 	 	11 026	 
	Man Group
	 	 	343	 	 	 	14 552	 
	Manpower
	 	 	482	 	 	 	10 484	 
	Manulife Financial
	 	 	483	 	 	 	10 480	 
	Marathon Oil
	 	 	110	 	 	 	35 041	 
	Marks & Spencer
	 	 	439	 	 	 	11 650	 
	Marriott International
	 	 	496	 	 	 	10 152	 
	Marubeni
	 	 	25	 	 	 	71 757	 
	Mass. Mutual Life Ins.
	 	 	249	 	 	 	19 340	 
	Matsushita Electric Industrial
	 	 	45	 	 	 	54 997	 
	May Dept. Stores
	 	 	351	 	 	 	14 175	 
	Mazda Motor
	 	 	296	 	 	 	16 754	 
	MBNA
	 	 	497	 	 	 	10 145	 

B-6

 

	 	 	 	 	 	 	 	 	 
	Company	 	Rank	 	Revenues [USD mio]
	McDonald’s
	 	 	340	 	 	 	14 870	 
	McKesson
	 	 	57	 	 	 	50 006	 
	Meiji Life Insurance
	 	 	176	 	 	 	25 296	 
	Merck
	 	 	62	 	 	 	47 716	 
	Merrill Lynch
	 	 	95	 	 	 	38 793	 
	MetLife
	 	 	128	 	 	 	31 928	 
	Metro
	 	 	72	 	 	 	44 347	 
	Michelin
	 	 	342	 	 	 	14 566	 
	Microsoft
	 	 	175	 	 	 	25 296	 
	Migros
	 	 	427	 	 	 	11 955	 
	Mirant
	 	 	129	 	 	 	31 502	 
	Mitsubishi
	 	 	12	 	 	 	105 814	 
	Mitsubishi Chemical
	 	 	350	 	 	 	14 239	 
	Mitsubishi Electric
	 	 	141	 	 	 	29 183	 
	Mitsubishi Heavy Industries
	 	 	204	 	 	 	22 905	 
	Mitsubishi Motors
	 	 	171	 	 	 	25 598	 
	Mitsubishi Tokyo Financial Group
	 	 	165	 	 	 	26 091	 
	Mitsui
	 	 	13	 	 	 	101 206	 
	Mitsui Mutual Life Insurance
	 	 	220	 	 	 	21 656	 
	Mitsui Sumitomo Insurance
	 	 	330	 	 	 	15 206	 
	Mizuho Holdings
	 	 	82	 	 	 	41 445	 
	Morgan Stanley
	 	 	73	 	 	 	43 727	 
	Motorola
	 	 	138	 	 	 	30 004	 
	Munich Re Group
	 	 	79	 	 	 	41 894	 
	National Australia Bank
	 	 	303	 	 	 	16 450	 
	Nationwide
	 	 	334	 	 	 	15 118	 
	NEC
	 	 	84	 	 	 	40 796	 
	Nestlé
	 	 	55	 	 	 	50 192	 
	New York Life Insurance
	 	 	170	 	 	 	25 678	 
	News Corp.
	 	 	364	 	 	 	13 755	 
	Nichimen
	 	 	305	 	 	 	16 437	 
	Nippon Express
	 	 	367	 	 	 	13 661	 
	Nippon Life insurance
	 	 	33	 	 	 	63 827	 
	Nippon Mitsubishi Oil
	 	 	197	 	 	 	23 521	 
	Nippon Steel
	 	 	229	 	 	 	20 645	 
	Nippon Telegraph & Telephone
	 	 	16	 	 	 	93 425	 
	Nissan Motor
	 	 	58	 	 	 	49 555	 
	Nissho Iwai
	 	 	74	 	 	 	43 703	 
	NKK
	 	 	384	 	 	 	13 224	 
	Nokia
	 	 	147	 	 	 	27 931	 
	Norddeutsche Landesb.
	 	 	475	 	 	 	10 604	 
	Nordea
	 	 	419	 	 	 	12 209	 
	Norinchukin Bank
	 	 	395	 	 	 	12 939	 
	Norsk Hydro
	 	 	291	 	 	 	16 999	 
	Nortel Networks
	 	 	263	 	 	 	18 507	 
	Northrop Grumman
	 	 	373	 	 	 	13 558	 
	Northwestern Mutual
	 	 	310	 	 	 	16 212	 
	Novartis
	 	 	257	 	 	 	18 986	 

B-7

 

	 	 	 	 	 	 	 	 	 
	Company	 	Rank	 	Revenues [USD mio]
	Obayashi
	 	 	447	 	 	 	11 226	 
	Occidental Petroleum
	 	 	355	 	 	 	14 126	 
	Office Depot
	 	 	450	 	 	 	11 154	 
	Old Mutual
	 	 	453	 	 	 	11 076	 
	Olivetti
	 	 	145	 	 	 	28 670	 
	Onex
	 	 	327	 	 	 	15 369	 
	Oracle
	 	 	464	 	 	 	10 860	 
	Otto Versand
	 	 	372	 	 	 	13 564	 
	PacifiCare Health Sys.
	 	 	433	 	 	 	11 844	 
	PDVSA
	 	 	66	 	 	 	46 250	 
	Pemex
	 	 	92	 	 	 	39 400	 
	PepsiCo
	 	 	159	 	 	 	26 935	 
	Petrobrás
	 	 	185	 	 	 	24 549	 
	Petronas
	 	 	284	 	 	 	17 679	 
	Peugeot
	 	 	65	 	 	 	46 264	 
	Pfizer
	 	 	127	 	 	 	32 259	 
	PG&E Corp.
	 	 	203	 	 	 	22 959	 
	Pharmacia
	 	 	250	 	 	 	19 299	 
	Philip Morris
	 	 	24	 	 	 	72 944	 
	Phillips Petroleum
	 	 	188	 	 	 	24 189	 
	POSCO
	 	 	494	 	 	 	10 162	 
	Power Corp. of Canada
	 	 	432	 	 	 	11 855	 
	Procter & Gamble
	 	 	93	 	 	 	39 244	 
	Prudential
	 	 	106	 	 	 	35 821	 
	Prudential Financial
	 	 	157	 	 	 	27 177	 
	Publix Super Markets
	 	 	328	 	 	 	15 284	 
	Qwest Communications
	 	 	244	 	 	 	19 743	 
	Rabobank
	 	 	225	 	 	 	21 141	 
	RAG
	 	 	365	 	 	 	13 691	 
	Raytheon
	 	 	295	 	 	 	16 867	 
	Reliant Energy
	 	 	67	 	 	 	46 226	 
	Renault
	 	 	125	 	 	 	32 552	 
	Repsol YPF
	 	 	94	 	 	 	39 091	 
	Ricoh
	 	 	379	 	 	 	13 375	 
	Rite Aid
	 	 	331	 	 	 	15 171	 
	Robert Bosch
	 	 	135	 	 	 	30 473	 
	Roche Group
	 	 	288	 	 	 	17 282	 
	Royal & Sun Alliance
	 	 	222	 	 	 	21 525	 
	Royal Ahold
	 	 	38	 	 	 	59 634	 
	Royal Bank of Canada
	 	 	299	 	 	 	16 536	 
	Royal Bank of Scotland
	 	 	115	 	 	 	33 831	 
	Royal Dutch/Shell Group
	 	 	8	 	 	 	135 211	 
	Royal KPN
	 	 	451	 	 	 	11 119	 
	Royal Philips Electronics
	 	 	143	 	 	 	28 960	 
	Rwe
	 	 	53	 	 	 	50 664	 
	Safeway
	 	 	113	 	 	 	34 301	 
	Safeway
	 	 	418	 	 	 	12 258	 
	Saint-Gobain
	 	 	155	 	 	 	27 214	 

B-8

 

	 	 	 	 	 	 	 	 	 
	Company	 	Rank	 	Revenues [USD mio]
	Samsung
	 	 	118	 	 	 	33 212	 
	Samsung Electronics
	 	 	105	 	 	 	35 969	 
	Samsung Life Insurance
	 	 	286	 	 	 	17 503	 
	Santander Central Hispano Group
	 	 	136	 	 	 	30 422	 
	Sanyo Electric
	 	 	293	 	 	 	16 892	 
	Sara Lee
	 	 	282	 	 	 	17 747	 
	SBC Communications
	 	 	69	 	 	 	45 908	 
	Schlumberger
	 	 	357	 	 	 	13 988	 
	Sears Roebuck
	 	 	83	 	 	 	41 078	 
	Sekisui House
	 	 	472	 	 	 	10 631	 
	Sharp
	 	 	346	 	 	 	14 426	 
	Shimizu
	 	 	405	 	 	 	12 669	 
	Showa Shell Sekiyu
	 	 	490	 	 	 	10 362	 
	Siemens
	 	 	22	 	 	 	77 359	 
	Sinochem
	 	 	311	 	 	 	16 164	 
	Sinopec
	 	 	86	 	 	 	40 388	 
	SK
	 	 	120	 	 	 	33 008	 
	SK Global
	 	 	289	 	 	 	17 214	 
	Skanska
	 	 	317	 	 	 	15 948	 
	SNCF
	 	 	274	 	 	 	18 026	 
	Société Générale
	 	 	191	 	 	 	23 924	 
	Sodexho Alliance
	 	 	476	 	 	 	10 579	 
	Solectron
	 	 	261	 	 	 	18 692	 
	Sony
	 	 	37	 	 	 	60 608	 
	Southern
	 	 	495	 	 	 	10 155	 
	Sprint
	 	 	167	 	 	 	26 071	 
	Standard Life Assurance
	 	 	265	 	 	 	18 416	 
	Staples
	 	 	469	 	 	 	10 744	 
	State Farm Insurance
	 	 	63	 	 	 	46 705	 
	State Power
	 	 	60	 	 	 	48 375	 
	Statoil
	 	 	164	 	 	 	26 286	 
	Stora Enso
	 	 	423	 	 	 	12 097	 
	Suez
	 	 	99	 	 	 	37 933	 
	Sumitomo
	 	 	23	 	 	 	77 140	 
	Sumitomo Electric Industries
	 	 	431	 	 	 	11 877	 
	Sumitomo Life Insurance
	 	 	126	 	 	 	32 549	 
	Sumitomo Metal Industries
	 	 	466	 	 	 	10 793	 
	Sumitomo Mitsui Banking
	 	 	137	 	 	 	30 229	 
	Sun Life Financial Services
	 	 	465	 	 	 	10 857	 
	Sun Microsystems
	 	 	268	 	 	 	18 250	 
	Sunoco
	 	 	412	 	 	 	12 402	 
	Suntory
	 	 	485	 	 	 	10 445	 
	Supervalu
	 	 	227	 	 	 	20 909	 
	Suzuki Motor
	 	 	381	 	 	 	13 342	 
	Swiss Life Ins. & Pension
	 	 	375	 	 	 	13 511	 
	Swiss Reinsurance
	 	 	235	 	 	 	20 210	 
	Sysco
	 	 	217	 	 	 	21 785	 
	Taisei
	 	 	378	 	 	 	13 387	 

B-9

 

	 	 	 	 	 	 	 	 	 
	Company	 	Rank	 	Revenues [USD mio]
	Taiyo Mutual Life Insurance
	 	 	401	 	 	 	12 824	 
	Takenaka
	 	 	500	 	 	 	10 096	 
	Target
	 	 	89	 	 	 	39 888	 
	Tech Data
	 	 	290	 	 	 	17 198	 
	Telefónica
	 	 	151	 	 	 	27 808	 
	Telstra
	 	 	411	 	 	 	12 415	 
	Tenet Healthcare
	 	 	424	 	 	 	12 053	 
	Tesco
	 	 	114	 	 	 	33 916	 
	Textron
	 	 	414	 	 	 	12 321	 
	Thyssen Krupp
	 	 	116	 	 	 	33 796	 
	TIAA-CREF
	 	 	187	 	 	 	24 231	 
	TJX
	 	 	470	 	 	 	10 709	 
	Tohoku Electric power
	 	 	371	 	 	 	13 574	 
	Tokio Marine & Fire Insurance
	 	 	312	 	 	 	16 156	 
	Tokyo Electric Power
	 	 	80	 	 	 	41 752	 
	Tomen
	 	 	255	 	 	 	19 073	 
	Toppan Printing
	 	 	489	 	 	 	10 367	 
	Toronto-Dominion Bank
	 	 	370	 	 	 	13 585	 
	Toshiba
	 	 	77	 	 	 	43 139	 
	Total Fina Elf
	 	 	15	 	 	 	94 312	 
	Toyota Motor
	 	 	10	 	 	 	120 814	 
	Toyota Tsusho
	 	 	273	 	 	 	18 040	 
	Toys `R` Us
	 	 	457	 	 	 	11 019	 
	TransCanada Pipelines
	 	 	435	 	 	 	11 715	 
	TRW
	 	 	306	 	 	 	16 383	 
	TUI
	 	 	223	 	 	 	21 253	 
	TXU
	 	 	148	 	 	 	27 927	 
	Tyco International
	 	 	103	 	 	 	36 389	 
	Tyson Foods
	 	 	468	 	 	 	10 751	 
	U.S. Bancorp
	 	 	304	 	 	 	16 443	 
	U.S. Postal Service
	 	 	29	 	 	 	65 834	 
	UAL
	 	 	315	 	 	 	16 138	 
	UBS
	 	 	59	 	 	 	48 503	 
	UFJ Holdings
	 	 	174	 	 	 	25 300	 
	UniCredito Italiano
	 	 	321	 	 	 	15 791	 
	Unilever
	 	 	68	 	 	 	46 131	 
	Union Pacific
	 	 	426	 	 	 	11 973	 
	United Parcel Service
	 	 	134	 	 	 	30 646	 
	United Technologies
	 	 	149	 	 	 	27 897	 
	United Health Group
	 	 	198	 	 	 	23 454	 
	Valero Energy
	 	 	336	 	 	 	14 988	 
	Verizon Communications
	 	 	26	 	 	 	67 190	 
	Viacom
	 	 	200	 	 	 	23 223	 
	Vinci
	 	 	308	 	 	 	16 291	 
	Visteon
	 	 	278	 	 	 	17 843	 
	Vivendi Universal
	 	 	51	 	 	 	51 366	 
	Vodafone
	 	 	123	 	 	 	32 713	 
	Volkswagen
	 	 	21	 	 	 	79 287	 

B-10

 

	 	 	 	 	 	 	 	 	 
	Company	 	Rank	 	Revenues [USD mio]
	Volvo
	 	 	267	 	 	 	18 301	 
	Wachovia Corp.
	 	 	211	 	 	 	22 396	 
	Walgreen
	 	 	183	 	 	 	24 623	 
	Wal-Mart Stores
	 	 	1	 	 	 	219 812	 
	Walt Disney
	 	 	177	 	 	 	25 269	 
	Washington Mutual
	 	 	283	 	 	 	17 692	 
	Waste Management
	 	 	444	 	 	 	11 322	 
	WellPoint Health Netwks.
	 	 	410	 	 	 	12 429	 
	Wells Fargo
	 	 	160	 	 	 	26 891	 
	Westdeutsche Landesbank
	 	 	201	 	 	 	23 139	 
	Weyerhaeuser
	 	 	344	 	 	 	14 545	 
	Whirlpool
	 	 	491	 	 	 	10 343	 
	Williams
	 	 	455	 	 	 	11 055	 
	Winn-Dixie Stores
	 	 	398	 	 	 	12 903	 
	Wolseley
	 	 	487	 	 	 	10 384	 
	Woolworths
	 	 	442	 	 	 	11 502	 
	WorldCom
	 	 	109	 	 	 	35 179	 
	Wyeth
	 	 	354	 	 	 	14 129	 
	Xcel Energy
	 	 	335	 	 	 	15 028	 
	Xerox
	 	 	300	 	 	 	16 502	 
	Yasuda Fire & Marine Insurance
	 	 	445	 	 	 	11 306	 
	Yasuda Mutual Life Insurance
	 	 	298	 	 	 	16 575	 
	Zurich Financial Services
	 	 	96	 	 	 	38 650	 

B-11

 

			
	 	 	 
	Pharmaceutical / Medical risks — APPENDIX C
	 	(Version 2002-Aug)
	(Page 1 of 2)	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Net Sales	 	Pharm /
	 	 	 	 	 	 	 	 	or	 	medical
	 	 	 	 	 	 	 	 	Revenues	 	sales
	 	 	 	 	 	 	 	 	2001	 	of
	#	 	Company Name	 	Country	 	Internet Address	 	(USD mio)	 	Total
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1
	 	ABBOTT LABORATORIES	 	USA	 	www.abbott.com	 	 	16,285	 	 	 	100	%
	2
	 	AKZO NOBEL	 	Netherlands	 	www.akzonobel.com	 	 	12,609	 	 	 	30	%
	3
	 	ALLERGAN	 	USA	 	www.allergan.com	 	 	1,746	 	 	 	100	%
	4
	 	ALPHARMA	 	USA	 	www.alpharma.com	 	 	1,200	 	 	 	80	%
	5
	 	ALTANA AG	 	Germany	 	www.altana.com	 	 	2,077	 	 	 	70	%
	6
	 	AMERISOURCE BERGEN	 	USA	 	www.amerisourcebergen.net	 	 	39,132	 	 	 	90	%
	7
	 	AMERSHAM	 	UK	 	www.nycomed-amersham.com	 	 	2,175	 	 	 	100	%
	8
	 	AMGEN	 	USA	 	www.amgen.com	 	 	4,016	 	 	 	100	%
	9
	 	ASTRAZENECA	 	UK	 	www.astrazeneca.com	 	 	16,431	 	 	 	100	%
	10
	 	AVENTIS	 	France	 	www.aventi.com	 	 	20,500	 	 	 	100	%
	11
	 	BARR LABORATORIES	 	USA	 	www.barrlabs.com	 	 	510	 	 	 	100	%
	12
	 	BAXTER INTERNATIONAL	 	USA	 	www.baxter.com	 	 	7,663	 	 	 	100	%
	13
	 	BAYER	 	Germany	 	www.bayer.com	 	 	27,248	 	 	 	35	%
	14
	 	BEAUFOUR IPSEN	 	France	 	www.beaufour-ipsen.com	 	 	634	 	 	 	90	%
	15
	 	BECTON, DICKINSON AND COMPANY	 	USA	 	www.bd.com	 	 	3,754	 	 	 	50	%
	16
	 	BOEHRINGER INGELHEIM KG	 	Germany	 	www.boehringer-ingelhelm.com	 	 	6,025	 	 	 	95	%
	17
	 	BOSTON SCIENTIFIC CORPORATION	 	USA	 	www.bscl.com	 	 	2,673	 	 	 	100	%
	18
	 	BRISTOL MYERS SQUIBB	 	USA	 	www.bms.com	 	 	19,423	 	 	 	70	%
	19
	 	CARDINAL HEALTH	 	USA	 	www.cardinal.com	 	 	47,948	 	 	 	80	%
	20
	 	CELLTECH (former MEDEVA)	 	UK	 	www.celltechgroup.com	 	 	439	 	 	 	100	%
	21
	 	CENTERPULSE (former SULZER MEDICA)	 	Switzerland	 	www.centerpulse.com	 	 	855	 	 	 	100	%
	22
	 	CHUGAI PHARMACEUTICAL	 	Japan	 	www.chugai-pharm.co.jp	 	 	1,608	 	 	 	95	%
	23
	 	DAIICHI PHARMACEUTICAL	 	Japan	 	www.dailchlpharm.co.jp	 	 	2,511	 	 	 	95	%
	24
	 	DAINIPPON PHARMACEUTICAL	 	Japan	 	www.dainippon-pharm.co.jp	 	 	1,258	 	 	 	85	%
	25
	 	EDWARDS LIFESCIENCES	 	USA	 	www.edwards.com	 	 	692	 	 	 	100	%
	26
	 	EISAI	 	Japan	 	www.elsal.co.jp	 	 	2,865	 	 	 	90	%
	27
	 	FOREST LABORATORIES	 	USA	 	www.frx.com	 	 	1,205	 	 	 	100	%
	28
	 	FUJISAWA PHARMACEUTICAL	 	Japan	 	www.fujisawa.co.jp	 	 	2,356	 	 	 	90	%
	29
	 	GENENTECH	 	USA	 	www.gene.com	 	 	2,212	 	 	 	75	%
	30
	 	GLAXOSMITHKLINE	 	UK	 	www.gsk.com	 	 	29,408	 	 	 	95	%
	31
	 	GUIDANT	 	USA	 	www.guidant.com	 	 	2,708	 	 	 	100	%
	32
	 	IMMUNEX	 	USA	 	www.immunex.com	 	 	986	 	 	 	100	%
	33
	 	IVAX	 	USA	 	www.ivax.com.	 	 	1,214	 	 	 	100	%
	34
	 	JOHNSON & JOHNSON	 	USA	 	www.jnj.com	 	 	33,004	 	 	 	50	%
	35
	 	KYOWA HAKKO KOGYO	 	Japan	 	www.kyowa.co.jp	 	 	2,975	 	 	 	40	%
	36
	 	LABORATOIRE FOURNIER	 	France	 	www.groupe-fournier.com	 	 	675	 	 	 	90	%
	37
	 	LABORATOIRE SERVIER	 	France	 	www.servier.com	 	 	1,593	 	 	 	100	%
	38
	 	LILLY (ELI)	 	USA	 	www.lilly.com	 	 	11,543	 	 	 	100	%
	39
	 	MEDTRONIC	 	USA	 	www.medtronic.com	 	 	5,552	 	 	 	100	%
	40
	 	MERCK & CO	 	USA	 	www.merck.com	 	 	47,716	 	 	 	90	%
	41
	 	MERCK KGAA	 	Germany	 	www.merck.de	 	 	6,727	 	 	 	50	%

C-1

 

			
	 	 	 
	Pharmaceutical / medical risks
	 	(Version 2002-Aug) (Page 2 of 2)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Net Sales	 	Pharm /
	 	 	 	 	 	 	 	 	or	 	medical
	 	 	 	 	 	 	 	 	Revenues	 	sales
	 	 	 	 	 	 	 	 	2001	 	of
	#	 	Company Name	 	Country	 	Internet Address	 	(USD mio)	 	Total
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	43
	 	MITSUBISHI PHARMACEUTICAL (former WELFIDE)	 	Japan	 	www.m-pharma.co.jp	 	 	1,437	 	 	 	85	%
	44
	 	MYLAN LABORATORIES	 	USA	 	www.mylan.com	 	 	847	 	 	 	100	%
	45
	 	NOVARTIS	 	Switzerland	 	www.novartis.com	 	 	18,570	 	 	 	80	%
	46
	 	NOVO NORDISK	 	Denmark	 	www.novonordisk.com	 	 	2,845	 	 	 	100	%
	47
	 	OTSUKA PHARMACEUTICAL	 	Japan	 	www.otsuka.co.jp	 	 	2,700	 	 	 	50	%
	48
	 	PFIZER	 	USA	 	www.pfizer.com	 	 	32,259	 	 	 	81	%
	49
	 	PHARMACIA	 	USA	 	www.pharmacia.com	 	 	13,837	 	 	 	100	%
	50
	 	PIERRE FABRE	 	France	 	www.pierre-fabre.com	 	 	1,200	 	 	 	100	%
	51
	 	PROCTER & GAMBLE	 	USA	 	www.pg.com	 	 	39,244	 	 	 	10	%
	52
	 	PURDUE FREDERICK PRA HOLDING	 	USA	 	www.purduepharma.com	 	 	1,500	 	 	 	100	%
	53
	 	ROCHE	 	Switzerland	 	www.roche.com	 	 	16,903	 	 	 	85	%
	54
	 	SANKYO	 	Japan	 	www.sankyo.co.jp	 	 	4,317	 	 	 	80	%
	55
	 	SANOFI-SYNTHELABO	 	France	 	www.sanofi-synthelabo.fr	 	 	5,798	 	 	 	95	%
	56
	 	SCHERING AG	 	Germany	 	www.schering.de	 	 	4,327	 	 	 	100	%
	57
	 	SCHERING-PLOUGH	 	USA	 	www.schering-plough.com	 	 	9,802	 	 	 	95	%
	58
	 	SCHWARZ PHARMA	 	Germany	 	www.schwarzpharma.com	 	 	686	 	 	 	100	%
	59
	 	SERONO	 	Switzerland	 	www.serono.com	 	 	1,349	 	 	 	100	%
	60
	 	SHIONOGI	 	Japan	 	www.shionogi.co.jp	 	 	3,268	 	 	 	90	%
	61
	 	SHIRE PHARMACEUTICALS	 	UK	 	www.shire.com	 	 	859	 	 	 	100	%
	62
	 	SMITH & NEPHEW	 	UK	 	www.smith-nephew.com	 	 	1,681	 	 	 	100	%
	63
	 	SOLVAY	 	Belgium	 	www.solvay.com	 	 	7,801	 	 	 	20	%
	64
	 	STRYKER	 	USA	 	www.strykercorp.com	 	 	2,602	 	 	 	60	%
	65
	 	SUMITOMO PHARMACEUTICALS	 	Japan	 	www.sumitomopharm.com	 	 	862	 	 	 	100	%
	66
	 	SYNTHES-STRATEC	 	Switzerland	 	www.stratec.com	 	 	907	 	 	 	100	%
	67
	 	TAKEDA CHEMICAL INDUSTRIES	 	Japan	 	www.takeda.com	 	 	7,631	 	 	 	75	%
	68
	 	TANABE	 	Japan	 	www.tanabe.co.jp	 	 	1,537	 	 	 	90	%
	69
	 	TAP Pharmaceutical Products	 	USA	 	www.tap.com	 	 	3,300	 	 	 	100	%
	70
	 	TEVA PHARMACEUTICAL	 	Israel	 	www.tevapharm.com	 	 	2,077	 	 	 	85	%
	71
	 	UCB	 	Belgium	 	www.ucb-group.com	 	 	2,216	 	 	 	50	%
	72
	 	WATSON PHARMACEUTICAL	 	USA	 	www.watsonpharm.com	 	 	1,161	 	 	 	100	%
	73
	 	WYETH (former American Home Products)	 	USA	 	www.ahp.com	 	 	14,129	 	 	 	90	%
	74
	 	YAMANOUCHI PHARMACEUTICAL	 	Japan	 	www.yamanouchi.com	 	 	3,627	 	 	 	80	%
	75
	 	ZIMMER USA www.zimmer.com	 	USA	 	www.zimmer.com	 	 	1,179	 	 	 	100	%

C-2

 

SUPPLEMENT TO THE ATTACHMENTS

DEFINITION OF IDENTIFICATION TERMS USED WITHIN THE ATTACHMENTS

	A.	 	Wherever the term “Company” or “Reinsured” or “Reassured” or whatever other term is
used to designate the reinsured company or companies within the various attachments to
the reinsurance agreement, the term shall be understood to mean Company or Reinsured or
Reassured or whatever other term is used in the attached reinsurance agreement to
designate the reinsured company or companies.
	 
	B.	 	Wherever the term “Agreement” or “Contract” or “Policy” or whatever other term is used to
designate the attached reinsurance agreement within the various attachments to the reinsurance
agreement, the term shall be understood to mean Agreement or Contract or Policy or whatever
other term is used to designate the attached reinsurance agreement.
	 
	C.	 	Wherever the term “Reinsurer” or “Reinsurers” or “Underwriters” or whatever other term is
used to designate the reinsurer or reinsurers in the various attachments to the reinsurance
agreement, the term shall be understood to mean Reinsurer or Reinsurers or Underwriters or
whatever other term is used to designate the reinsuring company or companies.

INSOLVENCY FUNDS EXCLUSION CLAUSE

This Agreement excludes 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 or from reimbursement of any person for any such liability. “Insolvency fund”
includes any guaranty fund, insolvency fund, plan, pool, association, fund or other arrangement,
howsoever denominated, established or governed, which provides for any assessment of or payment or
assumption by any person 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.

 

 

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

N.M.A. 1590

	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. in 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
Liabilities 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

-1-

 

	 	(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 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

					
	 	 	 	 	 
	N.M.A. 1590
	 	-2-
	 	 

 

 

	 	(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
question 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 damage 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.

					
	 	 	 	 	 
	N.M.A. 1590
	 	-3-
	 	 

 

 

	 	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 other than the tailings or wastes
produced by the extraction or concentration of uranium or thorium from any ore
processed for its source material content 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” includes all forms of radioactive contamination of property;
“property damage” 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

					
	 	 	 	 	 
	N.M.A. 1590
	 	-4-
	 	 

 

 

	 	(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 operations 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 or the Independent Insurance Conference of Canada.

	*NOTE:	 	 The words printed in BOLD TYPE 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.

					
	 	 	 	 	 
	N.M.A. 1590
	 	-5-
	 	 

 

 

NUCLEAR INCIDENT EXCLUSION CLAUSE — LIABILITY — REINSURANCE — CANADA

N.M.A. 1979

	1.	 	This Agreement does not cover any loss or liability accruing to the Company 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 agreed
that for all purposes of this Agreement all the original liability contracts of the Company,
whether new, renewal or replacement, of the following classes, namely,

Personal Liability

Farmers’ Liability

Storekeepers’ Liability

	 	 	which become effective on or after 31st December 1984, shall be deemed to include, from their
inception dates and thereafter, the following provision:
	 
	 	 	Limited Exclusion Provision -
	 
	 	 	This Policy does not apply to bodily injury or property damage with respect to which the
Insured is also insured under a contract of nuclear energy liability insurance (whether the
Insured is unnamed in such contract and whether or not it is legally enforceable by the
Insured) issued by the Nuclear Insurance Association of Canada or any other group or pool of
insurers or would be an Insured under any such policy but for its termination upon exhaustion
of its limits of liability.
	 
	 	 	With respect to property, loss of use of such property shall be deemed to be property damage.
	 
	3.	 	Without in any way restricting the operation of Paragraph 1. of this Clause, it is agreed
that for all purposes of this Agreement all the original liability contracts of the Company,
whether new, renewal or replacement, of any class whatsoever (other than Personal Liability,
Farmers’ Liability, Storekeepers’ Liability or Automobile Liability contracts), which become
effective on or after 31st December 1984, shall be deemed to include, from their
inception dates and thereafter, the following provision:

-1-

 

	 	 	Broad Exclusion Provision -
	 
	 	 	It is agreed that this Policy does not apply:

	 	(a)	 	to liability imposed by or arising under the Nuclear Liability Act; nor
	 
	 	(b)	 	to bodily injury or property damage with respect to which an Insured under this
Policy is also insured under a contract of nuclear energy liability insurance (whether
the Insured is unnamed in such contract and whether or not it is legally enforceable
by the Insured) issued by the Nuclear Association of Canada or any other insurer or
group or pool of insurers or would be an Insured under any such policy but for its
termination upon exhaustion of its limit of liability; nor
	 
	 	(c)	 	to bodily injury or property damage resulting directly or indirectly from the
nuclear energy hazard arising from:

	 	(i)	 	the ownership, maintenance, operation or use of a nuclear facility by
or on behalf of an Insured;
	 
	 	(ii)	 	the furnishing of an Insured of services, materials, parts or
equipment in connection with the planning, construction, maintenance, operation or
use of any nuclear facility; and
	 
	 	(iii)	 	the possession, consumption, use, handling, disposal or
transportation of fissionable substances, or of other radioactive material (except
radioactive isotopes, away from a nuclear facility, which have reached the final
stage of fabrication so as to be usable for any scientific, medical, agricultural,
commercial or industrial purpose) used, distributed, handled or sold by an
Insured.

	 	 	As used in this Policy:

	 	(1)	 	The term “nuclear energy hazard” means the radioactive, toxic, explosive, or
other hazardous properties of radioactive material;
	 
	 	(2)	 	The term “radioactive material” means uranium, thorium, plutonium,
neptunium, their respective derivatives and compounds, radioactive isotopes of
other elements and any other substances that the Atomic Energy Control Board may,
by regulation, designate as being prescribed substances capable of releasing atomic
energy, or as being requisite for the production, use or application of atomic
energy;

					
	 	 	 	 	 
	N.M.A. 1979
	 	-2-
	 	 

 

 

	 	(3)	 	The term “nuclear facility” means:

	 	(a)	 	any apparatus designed or used to sustain nuclear fission in a
self-supporting chain reaction or to contain a critical mass of plutonium, thorium
and uranium or any one or more of them;
	 
	 	(b)	 	any equipment or device designed or used for (i) separating the
isotopes of plutonium, thorium and uranium or any one or more of them, (ii)
processing or utilizing spent fuel, or (iii) handling, processing or packaging
waste;
	 
	 	(c)	 	any equipment or device used for the processing, fabricating or
alloying of plutonium, thorium or uranium enriched in the isotope uranium 233 or in
the isotope uranium 235, or any one or more of them 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 radioactive
material;

	 	 	 	and includes the site on which any of the foregoing is located, together with all
operations conducted thereon and all premises used for such operations.
	 
	 	(4)	 	The term “fissionable substance” means any prescribed substance that is, or from
which can be obtained, a substance capable of releasing atomic energy by nuclear
fission.
	 
	 	(5)	 	With respect to property, loss of use of such property shall be deemed to be
property damage.

					
	 	 	 
	N.M.A. 1979
	 	-3-
	 	 

 

 

NUCLEAR INCIDENT EXCLUSION CLAUSE — REINSURANCE — NO. 4

	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 operations of Nuclear Incident Exclusion Clauses, —
Liability,  — Physical Damage,  — Boiler and Machinery and paragraph 1. of this Clause, it is
understood and agreed that for all purposes of the reinsurance assumed by the Reinsurer from
the Reinsured, all original insurance policies or contracts of the Reinsured (new, renewal and
replacement) shall be deemed to include the applicable existing Nuclear Clause and/or Nuclear
Exclusion Clause(s) in effect at the time and any subsequent revisions thereto as agreed upon
and approved by the Insurance Industry and/or a qualified Advisory or Rating Bureau.

 

 

ENDORSEMENT NO. 1

to the

INTERESTS AND LIABILITIES CONTRACT

(hereinafter referred to as the “Agreement”)

of the

CASUALTY EXCESS OF LOSS

REINSURANCE AGREEMENT

No. RAMSumCX — 2003

between

BRIDGEFIELD CASUALTY INSURANCE COMPANY

BRIDGEFIELD EMPLOYERS INSURANCE COMPANY

Lakeland, Florida

(hereinafter referred to as the “Company”)

and

PEERLESS INSURANCE COMPANY

Keene, New Hampshire
 (hereinafter referred to as the “Reinsurer”)

It is understood and agreed that Addendum No. 1 to the Casualty Excess of Loss Agreement No.
RAMSumCX — 2003 is attached hereto and made a part of said Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Endorsement to be executed in duplicate, by
their duly authorized representatives.

In Lakeland, Florida, this 12th day of March, 2004.

	 	 	 

	ATTEST:

	 	BRIDGEFIELD CASUALTY INSURANCE COMPANY
	 

	 	BRIDGEFIELD EMPLOYERS INSURANCE COMPANY
	 
	 	 
	/s/
	 	/s/
	 

	 	 

And in Keene, New Hampshire, this 16th day of March, 2004.

	 	 	 

	ATTEST:

	 	PEERLESS INSURANCE COMPANY
	 
	 	 
	/s/
	 	/s/ Nancy C. Callender
	 

	 	 

No. RAMSumCX-2003

Endorsement No. 1

 

 

ADDENDUM NO. 1

to the

CASUALTY EXCESS OF LOSS

REINSURANCE AGREEMENT

No. RAMSumCX — 2003

(hereinafter referred to as the “Agreement”)

Between

BRIDGEFIELD CASUALTY INSURANCE COMPANY

BRIDGEFIELD EMPLOYERS INSURANCE COMPANY

Lakeland, Florida

(hereinafter referred to as the “Company”)

and

PEERLESS INSURANCE COMPANY

Keene, New Hampshire

(hereinafter referred to as the “Reinsurer”)

It is understood and agreed that as respects policies in force at 12:01 a.m., local standard time,
January 1, 2004, and new and renewal policies becoming effective on and after said date, this
Agreement is amended as follows:

	1.	 	Section 3 of Exhibit A — FIRST EXCESS OF LOSS (ACCOUNTING CODE RAMSumCX — 2003) shall be
deleted in its entirety and replaced with the following:
	 
	 	 	SECTION 3 — REINSURANCE PREMIUM

	 	 	 	 	 
	Profit Center	 	Rate
	Summit
	 	 	4.20	%

	 	 	Total Subject Premium to the Layer: $514,754,875
	 
	 	 	Composite Rate: 4.20% Subject Net Earned Premium Income ($21,619,705)
	 
	2.	 	Section 3 of Exhibit B — SECOND EXCESS OF LOSS (ACCOUNTING CODE RAMSumCX — 2003) shall be
deleted in its entirety and replaced with the following:
	 
	 	 	SECTION 3 — REINSURANCE PREMIUM

	 	 	 	 	 
	Profit Center	 	Rate
	Summit
	 	 	.250	%

	 	 	Total Subject Premium to the Layer: $514,754,875
	 
	 	 	Composite Rate: .250% Subject Net Earned Premium Income ($1,286,887)

					
	 	 	 	 	 
	Page 1 of 2
	 	No. RAMSumCX-2003
	 	 
	 
	 	Addendum No. 1	 	 

 

 

	3.	 	Section 3 of Exhibit C — THIRD EXCESS OF LOSS (ACCOUNTING CODE RAMSumCX — 2003) shall be
deleted in its entirety and replaced with the following:
	 
	 	 	SECTION 3 — REINSURANCE PREMIUM

	 	 	 	 	 
	Profit Center	 	Rate
	Summit
	 	 	.300	%

	 	 	Total Subject Premium to the Layer: $514,754,875
	 
	 	 	Composite Rate: .300% Subject Net Earned Premium Income ($1,544,265)

ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED

					
	 	 	 
	Page 2 of 2
	 	No. RAMSumCX-2003
	 	 
	 
	 	Addendum No. 1	 	 

 

 

ENDORSEMENT NO. 2

to the

INTERESTS AND LIABILITIES CONTRACT

(hereinafter referred to as the “Contract”)

of the

CASUALTY EXCESS OF LOSS

REINSURANCE AGREEMENT

No. RAMSumCX — 2003

between

BRIDGEFIELD CASUALTY INSURANCE COMPANY

BRIDGEFIELD EMPLOYERS INSURANCE COMPANY

Lakeland, Florida

(hereinafter referred to as the “Company”)

and

PEERLESS INSURANCE COMPANY

Keene, New Hampshire

(hereinafter referred to as the “Reinsurer”)

It is understood and agreed that Addendum No. 2 to the Casualty Excess of Loss Reinsurance
Agreement No. RAMSumCX — 2003 is attached hereto and made a part of said Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Endorsement to be executed in duplicate, by
their duly authorized representatives.

In Lakeland, Florida, this 28th day of October, 2005.

	 	 	 

	ATTEST:

	 	BRIDGEFIELD CASUALTY INSURANCE COMPANY
	 

	 	BRIDGEFIELD EMPLOYERS INSURANCE COMPANY
	 
	/s/
	 	/s/
	 

	 	 

And in Keene, New Hampshire, this 3rd day of October, 2005.

	 	 	 

	ATTEST

	 	PEERLESS INSURANCE COMPANY
	 
	/s/
	 	/s/ Nancy C. Callender
	 

	 	 

No. RAMSumCX-2003

Endorsement No. 2

 

 

ADDENDUM NO. 2

to the

CASUALTY EXCESS OF LOSS

REINSURANCE AGREEMENT

(hereinafter referred to as the “Agreement”)

between

BRIDGEFIELD CASUALTY INSURANCE COMPANY

BRIDGEFIELD EMPLOYERS INSURANCE COMPANY

Lakeland, Florida

(hereinafter referred to as the “Company”)

and

PEERLESS INSURANCE COMPANY

Keene, New Hampshire

(hereinafter referred to as the “Reinsurer”)

It is understood and agreed that effective 12:01 a.m., Local Standard Time, January 1, 2005, this
Agreement is terminated in accordance with the provisions of Article II — Effective Date and
Termination.

No. RAMSumCX-2003

Endorsement No. 2

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