Document:

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                                                                    Exhibit 10.8

            SECOND AND THIRD EXCESS REINSTATEMENT PREMIUM PROTECTION
                              REINSURANCE CONTRACT
                             EFFECTIVE: JUNE 1, 2006

                                    issued to

                       Liberty American Insurance Company
                             Pinellas Park, Florida
                    Liberty American Select Insurance Company
                             Pinellas Park, Florida
                                       and
                    any and all other companies which are now
                   or may hereafter become member companies of
                     Liberty American Insurance Group, Inc.

06\M2U1132                                                       (BENFIELD LOGO)

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
ARTICLE                                                                     PAGE
-------                                                                     ----
<S>                                                                         <C>
     I    Coverage                                                            1
    II    Commencement and Termination                                        1
   III    Concurrency of Conditions                                           2
    IV    Reinsurance Premium                                                 3
     V    Loss Notices and Settlements                                        3
    VI    Late Payments                                                       4
   VII    Offset (BRMA 36D)                                                   5
  VIII    Access to Records (BRMA 1D)                                         5
    IX    Errors and Omissions (BRMA 14F)                                     5
     X    Currency (BRMA 12A)                                                 6
    XI    Taxes (BRMA 50B)                                                    6
   XII    Federal Excise Tax                                                  6
  XIII    Funding Requirements                                                6
   XIV    Insolvency                                                          7
    XV    Arbitration                                                         8
   XVI    Service of Suit                                                     9
  XVII    Agency Agreement                                                   10
 XVIII    Governing Law                                                      10
   XIX    Confidentiality                                                    10
    XX    Severability                                                       10
   XXI    Intermediary (BRMA 23A)                                            10
          Schedule A
</TABLE>

06\M2U1132                                                       (BENFIELD LOGO)

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            SECOND AND THIRD EXCESS REINSTATEMENT PREMIUM PROTECTION
                              REINSURANCE CONTRACT
                             EFFECTIVE: JUNE 1, 2006

                                    issued to

                       Liberty American Insurance Company
                             Pinellas Park, Florida
                    Liberty American Select Insurance Company
                             Pinellas Park, Florida
                                       and
                    any and all other companies which are now
                   or may hereafter become member companies of
                     Liberty American Insurance Group, Inc.
             (hereinafter referred to collectively as the "Company")

                                       by

                   The Subscribing Reinsurer(s) Executing the
                     Interests and Liabilities Agreement(s)
                                 Attached Hereto
                  (hereinafter referred to as the "Reinsurer")

ARTICLE I - COVERAGE

By this Contract the Reinsurer agrees to indemnify the Company for 100% of any
reinstatement premium which the Company pays or becomes liable to pay as a
result of loss occurrences commencing during the term of this Contract under the
provisions of the Second and Third Excess layers of the Company's Florida Only
Excess Catastrophe Reinsurance Contract, effective June 1, 2006 (hereinafter
referred to as the "Underlying Contract" and described in Schedule A attached to
and forming part of this Contract), subject to the terms and conditions set
forth herein. However, the liability of the Reinsurer shall not exceed
$25,000,000 during the term of this Contract.

ARTICLE II - COMMENCEMENT AND TERMINATION

A.   This Contract shall become effective at 12:01 a.m., Local Standard Time,
     June 1, 2006, with respect to reinstatement premium payable by the Company
     under the provisions of the Underlying Contract as a result of losses
     arising out of loss occurrences commencing at or after that time and date,
     and shall remain in force until 12:01 a.m., Local Standard Time, June 1,
     2007.

B.   Notwithstanding the provisions of paragraph A above, the Company may
     terminate a Subscribing Reinsurer's percentage share in this Contract by
     giving written notice to the Subscribing Reinsurer in the event any of the
     following circumstances occur as clarified by

06\M2U1132                                                       (BENFIELD LOGO)

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     public announcement for subparagraphs 1 through 6 below and upon discovery
     for subparagraphs 7 and 8 below:

     1.   The Subscribing Reinsurer's policyholders' surplus or foreign
          equivalent thereto after the date lines are bound for this Contract
          has been reduced by more than 25.0% of the amount of surplus or
          foreign equivalent 12 months prior to that date; or

     2.   The Subscribing Reinsurer's policyholders' surplus or the foreign
          equivalent thereto at any time after the date that lines are bound or
          at any time during the term of this Contract has been reduced by more
          than 25.0% of the amount of surplus or foreign equivalent at the date
          of the Subscribing Reinsurer's most recent financial statement filed
          with regulatory authorities and available to the public as of the date
          lines are bound for this Contract; or

     3.   The Subscribing Reinsurer's A.M. Best's Financial Strength rating has
          been assigned as any rating below "A -" (inclusive of "Not Rated"
          ratings) and/or the Subscribing Reinsurer's Standard & Poor's Insurer
          Financial Strength rating has been assigned as any rating below "BBB
          +" (inclusive of "Not Rated" ratings); or

     4.   The Subscribing Reinsurer has become merged with, acquired by or
          controlled by any other company, corporation or individual(s) not
          controlling the Subscribing Reinsurer's operations previously; or

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

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

     7.   The Subscribing Reinsurer has reinsured its entire liability under
          this Contract to a non-affiliated entity without the Company's prior
          written consent; or

     8.   The Subscribing Reinsurer has ceased assuming new or renewal property
          or casualty treaty reinsurance business.

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

ARTICLE III - CONCURRENCY OF CONDITIONS

A.   It is agreed that this Contract will follow the terms, conditions,
     exclusions, definitions, warranties and settlements of the Company under
     the Underlying Contract which are not inconsistent with the provisions of
     this Contract.

06\M2U1132                                                       (BENFIELD LOGO)

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

ARTICLE IV - REINSURANCE PREMIUM

A.   As premium for the reinsurance provided hereunder, the Company shall pay
     the Reinsurer the greater of the following:

     1.   A minimum and deposit premium of $10,600,000 ($4,600,000 as respects
          the Second Excess layer of the Underlying Contract and $6,000,000 as
          respects the Third Excess layer of the Underlying Contract); or

     2.   0.06243% (0.02709% as respects the Second Excess layer of the
          Underlying Contract and 0.03534% as respects the Third Excess layer of
          the Underlying Contract) of the Company's total insured value for
          policies that included wind coverage in force on September 30, 2006.

B.   The Company shall pay the Reinsurer the minimum and deposit premium for
     each excess layer set forth in subparagraph 1 of paragraph A above in four
     equal installments on June 1, September 1 and December 1 of 2006 and March
     1 of 2007.

C.   Within 45 days after the expiration of this Contract, the Company shall
     provide a report to the Reinsurer setting forth the premium due hereunder
     for each excess layer, computed in accordance with paragraph A above, and
     any additional premium due the Reinsurer for each such excess layer shall
     be remitted promptly.

D.   In the event a Subscribing Reinsurer's participation in this Contract is
     terminated under the provisions of paragraph B of the Commencement and
     Termination Article, no further installments shall be due after the
     effective date of termination and the final premium shall be calculated as
     the number of days the Subscribing Reinsurer participated on this Contract
     divided by the number of days of the original term of this Contract and the
     quotient thereof shall be multiplied by the premium as set forth in
     paragraph A above. Any premium paid to the Subscribing Reinsurer in excess
     of the final premium shall be returned to the Company as promptly as
     possible.

ARTICLE V - LOSS NOTICES AND SETTLEMENTS

A.   Whenever reinstatement premium settlements made by the Company under the
     Underlying Contract appear likely to result in a claim hereunder, the
     Company shall notify the Reinsurer. The Company will advise the Reinsurer
     of all subsequent developments relating to such claims that, in the opinion
     of the Company, may materially affect the position of the Reinsurer.

B.   All reinstatement premium settlements made by the Company under the
     Underlying Contract, provided they are within the terms of the Underlying
     Contract and within the terms of this Contract, shall be binding upon the
     Reinsurer, and the Reinsurer agrees to pay all

06\M2U1132                                                       (BENFIELD LOGO)

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     amounts for which it may be liable upon receipt of reasonable evidence of
     the amount paid (or scheduled to be paid within 14 days) by the Company.

ARTICLE VI - LATE PAYMENTS

A.   The provisions of this Article shall not be implemented unless specifically
     invoked, in writing, by one of the parties to this Contract.

B.   In the event any premium, loss or other payment due either party is not
     received by the intermediary named in the Intermediary Article (BRMA 23A)
     (hereinafter referred to as the "Intermediary") by the payment due date,
     the party to whom payment is due may, by notifying the Intermediary in
     writing, require the debtor party to pay, and the debtor party agrees to
     pay, an interest penalty on the amount past due calculated for each such
     payment on the last business day of each month as follows:

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

     2.   1/365ths of the six-month United States Treasury Bill Rate as quoted
          in The Wall Street Journal on the first business day of the month for
          which the calculation is made; times

     3.   The amount past due, including accrued interest.

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

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

     1.   As respects the payment of routine deposits and premiums due the
          Reinsurer, the due date shall be as provided for in the applicable
          section of this Contract. In the event a due date is not specifically
          stated for a given payment, it shall be deemed due 30 days after the
          date of transmittal by the Intermediary of the initial billing for
          each such payment.

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

     3.   As respects any payment, adjustment or return due either party not
          otherwise provided for in subparagraphs 1 and 2 of this paragraph C,
          the due date shall be as provided for in the applicable section of
          this Contract. In the event a due date is not specifically stated for
          a given payment, it shall be deemed due 10 business days following
          transmittal of written notification that the provisions of this
          Article have been invoked.

06\M2U1132                                                       (BENFIELD LOGO)

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     For purposes of interest calculations only, amounts due hereunder shall be
     deemed paid upon receipt by the Intermediary.

D.   Nothing herein shall be construed as limiting or prohibiting a Subscribing
     Reinsurer from contesting the validity of any claim, or from participating
     in the defense of any claim or suit, or prohibiting either party from
     contesting the validity of any payment or from initiating any arbitration
     or other proceeding in accordance with the provisions of this Contract. If
     the debtor party prevails in an arbitration or other proceeding, then any
     interest penalties due hereunder on the amount in dispute shall be null and
     void. If the debtor party loses in such proceeding, then the interest
     penalty on the amount determined to be due hereunder shall be calculated in
     accordance with the provisions set forth above unless otherwise determined
     by such proceedings. If a debtor party advances payment of any amount it is
     contesting, and proves to be correct in its contestation, either in whole
     or in part, the other party shall reimburse the debtor party for any such
     excess payment made plus interest on the excess amount calculated in
     accordance with this Article.

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

ARTICLE VII - OFFSET (BRMA 36D)

The Company and the Reinsurer, each at its option, may offset any balance or
balances, whether on account of premiums, claims and losses, loss expenses or
salvages due from one party to the other under this Contract; provided, however,
that in the event of the insolvency of a party hereto, offsets shall only be
allowed in accordance with applicable statutes and regulations.

ARTICLE VIII - ACCESS TO RECORDS (BRMA 1D)

The Reinsurer or its designated representatives shall have access at any
reasonable time to all records of the Company which pertain in any way to this
reinsurance.

ARTICLE IX - ERRORS AND OMISSIONS (BRMA 14F)

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

06\M2U1132                                                       (BENFIELD LOGO)

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ARTICLE X - CURRENCY (BRMA 12A)

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

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

ARTICLE XI - TAXES (BRMA 50B)

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

ARTICLE XII - FEDERAL EXCISE TAX

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

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

ARTICLE XIII - FUNDING REQUIREMENTS

A.   The Reinsurer agrees to fund, within 30 days of the Company's request,
     subject to receipt of satisfactory information from the Company, its share
     of the Company's ceded unearned premium and outstanding loss reserves
     (being the sum of all reinstatement premiums paid by the Company under the
     Underlying Contract but not yet recovered from the Reinsurer, plus the
     Company's reserves for reinstatement premiums due under the Underlying
     Contract, if any) by:

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

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

     3.   Cash advances;

06\M2U1132                                                       (BENFIELD LOGO)

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     if the Reinsurer is unauthorized in any state of the United States of
     America or the District of Columbia having jurisdiction over the Company
     and if, without such funding a penalty would accrue to the Company on any
     financial statement, including but not limited to quarterly filings, it is
     required to file with the insurance regulatory authorities involved.

     The Reinsurer, at its sole option, may fund in other than cash if its
     method of funding is acceptable to the Company and to the insurance
     regulatory authorities involved.

     For the purpose of this Contract, the Lloyd's U.S. Credit for Reinsurance
     Trust Fund shall be considered an acceptable funding instrument.

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

     1.   To reimburse itself for the Reinsurer's share of reinstatement
          premiums paid by the Company under the terms of the Underlying
          Contract, unless paid in cash by the Reinsurer;

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

     3.   To fund a cash account in an amount equal to the Reinsurer's share of
          any ceded unearned premium and/or outstanding loss reserves funded by
          means of a letter of credit which is under non-renewal notice, if said
          letter of credit has not been renewed or replaced by the Reinsurer 10
          days prior to its expiration date;

     4.   To refund to the Reinsurer any sum in excess of the actual amount
          required to fund the Reinsurer's share of the Company's ceded unearned
          premium and/or outstanding loss reserves, if so requested by the
          Reinsurer.

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

ARTICLE XIV - INSOLVENCY

A.   In the event of the insolvency of one or more of the reinsured companies,
     this reinsurance shall be payable directly to the company or to its
     liquidator, receiver, conservator or statutory successor on the basis of
     the liability of the company without diminution because of the insolvency
     of the company or because the liquidator, receiver, conservator or

06\M2U1132                                                       (BENFIELD LOGO)

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     statutory successor of the company has failed to pay all or a portion of
     any claim. It is agreed, however, that the liquidator, receiver,
     conservator or statutory successor of the company shall give written notice
     to the Reinsurer of the pendency of a claim against the company indicating
     the policy or bond reinsured which claim would involve a possible liability
     on the part of the Reinsurer within a reasonable time after such claim is
     filed in the conservation or liquidation proceeding or in the receivership,
     and that during the pendency of such claim, the Reinsurer may investigate
     such claim and interpose, at its own expense, in the proceeding where such
     claim is to be adjudicated, any defense or defenses that it may deem
     available to the company or its liquidator, receiver, conservator or
     statutory successor. The expense thus incurred by the Reinsurer shall be
     chargeable, subject to the approval of the Court, against the company as
     part of the expense of conservation or liquidation to the extent of a pro
     rata share of the benefit which may accrue to the company solely as a
     result of the defense undertaken by the Reinsurer.

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

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

ARTICLE XV - ARBITRATION

A.   As a condition precedent to any right of action hereunder, any dispute or
     difference between the Company and any Reinsurer relating to the
     interpretation or performance of this Contract, including its formation or
     validity, or any transaction under this Contract, whether arising before or
     after termination, shall be submitted to arbitration.

B.   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 provided that communication shall be made by the Company to each of
     the reinsurers constituting the one party, and provided, however, that
     nothing therein 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 Reinsurer under the terms of this Contract
     from several to joint.

C.   Upon written request of any party, each party shall choose an arbitrator
     and the two chosen shall select a third arbitrator. If either party refuses
     or neglects to appoint an arbitrator within 30 days after receipt of the
     written request for arbitration, the requesting party may appoint a second
     arbitrator. If the two arbitrators fail to agree on the selection of a
     third arbitrator within 30 days of their appointment, the Company shall
     petition the American Arbitration Association to appoint the third
     arbitrator. If the American Arbitration Association fails to appoint the
     third arbitrator within 30 days after it has been requested to do so,
     either

06\M2U1132                                                       (BENFIELD LOGO)

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     party may request a justice of a court of general jurisdiction of the state
     in which the arbitration is to be held to appoint the third arbitrator. All
     arbitrators shall be active or retired officers of insurance or reinsurance
     companies, or Lloyd's London Underwriters, and disinterested in the outcome
     of the arbitration. Each party shall submit its case to the arbitrators
     within 30 days of the appointment of the third arbitrator.

D.   The parties hereby waive all objections to the method of selection of the
     arbitrators, it being the intention of both sides that all the arbitrators
     be chosen from those submitted by the parties.

E.   The arbitrators shall have the power to determine all procedural rules for
     the holding of the arbitration including but not limited to inspection of
     documents, examination of witnesses and any other matter relating to the
     conduct of the arbitration. The arbitrators shall interpret this Contract
     as an honorable engagement and not as merely a legal obligation; they are
     relieved of all judicial formalities and may abstain from following the
     strict rules of law. The arbitrators may award interest and costs. Each
     party shall bear the expense of its own arbitrator and shall share equally
     with the other party the expenses of the third arbitrator and of the
     arbitration.

F.   The decision in writing of the majority of the arbitrators shall be final
     and binding upon both parties. Judgment may be entered upon the final
     decision of the arbitrators in any court having jurisdiction. The
     arbitration shall take place in Pinellas Park, Florida, unless otherwise
     mutually agreed between the Company and the Reinsurer.

G.   This Article shall remain in full force and effect in the event any other
     provision of this Contract shall be found invalid or non-binding.

H.   All time limitations stated in this Article may be amended by mutual
     consent of the parties, and will be amended automatically to the extent
     made necessary by any circumstances beyond the control of the parties.

ARTICLE XVI - SERVICE OF SUIT

(Applicable if the Reinsurer is not domiciled in the United States of America,
and/or is not authorized in any State, Territory or District of the United
States where authorization is required by insurance regulatory authorities. This
Article is not intended to conflict with or override the parties' obligations to
arbitrate their disputes in accordance with the Arbitration Article.)

A.   It is agreed that in the event the Reinsurer fails to pay any amount
     claimed to be due hereunder, the Reinsurer, at the request of the Company,
     will submit to the jurisdiction of any court of competent jurisdiction
     within the United States. Nothing in this Article constitutes or should be
     understood to constitute a waiver of the Reinsurer's rights to commence an
     action in any court of competent jurisdiction in the United States, to
     remove an action to a United States District Court, or to seek a transfer
     of a case to another court as permitted by the laws of the United States or
     of any state in the United States.

B.   Further, pursuant to any statute of any state, territory or district of the
     United States which makes provision therefore, the Reinsurer hereby
     designates the party named in its Interests and Liabilities Agreement, or
     if no party is named therein, the Superintendent,

06\M2U1132                                                       (BENFIELD LOGO)

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     Commissioner or Director of Insurance or other officer specified for that
     purpose in the statute, or his successor or successors in office, as its
     true and lawful attorney upon whom may be served any lawful process in any
     action, suit or proceeding instituted by or on behalf of the Company or any
     beneficiary hereunder arising out of this Contract.

ARTICLE XVII - AGENCY AGREEMENT

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

ARTICLE XVIII - GOVERNING LAW

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

ARTICLE XIX - CONFIDENTIALITY

The Reinsurer, except with the express prior written consent of the Company,
shall not directly or indirectly, communicate, disclose or divulge to any third
party, any knowledge or information that may be acquired either directly or
indirectly as a result of the inspection of the Company's books, records and
papers. The restrictions as outlined in this Article shall not apply to
communication or disclosures that the Reinsurer is required to make to its
statutory auditors, retrocessionaires, legal counsel, arbitrators involved in
any arbitration procedures under this Contract or disclosures required upon
subpoena or other duly-issued order of a court or other governmental agency or
regulatory authority.

ARTICLE XX - SEVERABILITY

If any provision of this Contract should be invalid under applicable laws, the
latter shall control but only to the extent of the conflict without affecting
the remaining provisions of this Contract.

ARTICLE XXI - INTERMEDIARY (BRMA 23A)

Benfield, Inc. is hereby recognized as the Intermediary negotiating this
Contract for all business hereunder. All communications (including but not
limited to notices, statements, premium, return premium, commissions, taxes,
losses, loss adjustment expense, salvages and loss settlements) relating thereto
shall be transmitted to the Company or the Reinsurer through Benfield, Inc.
Payments by the Company to the Intermediary shall be deemed to constitute
payment to the Reinsurer. Payments by the Reinsurer to the Intermediary shall be
deemed to

06\M2U1132                                                       (BENFIELD LOGO)

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constitute payment to the Company only to the extent that such payments are
actually received by the Company.

IN WITNESS WHEREOF, the Company by its duly authorized representative has
executed this Contract as of the date undermentioned at:

Pinellas Park, Florida, this 21st day of July in the year 2006.

                                 /s/ T. Bruce Meyer
                                 -----------------------------------------------
                                 T. Bruce Meyer, Corporate President and CEO
                                 Liberty American Insurance Group, Inc.
                                 (for and on behalf of the "Company")

                                 T. Bruce Meyer
                                 (Print name and title)

06\M2U1132                                                       (BENFIELD LOGO)

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                                   SCHEDULE A

            SECOND AND THIRD EXCESS REINSTATEMENT PREMIUM PROTECTION
                              REINSURANCE CONTRACT
                             EFFECTIVE: JUNE 1, 2006

                                    issued to

                       Liberty American Insurance Company
                             Pinellas Park, Florida
                    Liberty American Select Insurance Company
                             Pinellas Park, Florida
                                       and
                    any and all other companies which are now
                   or may hereafter become member companies of
                     Liberty American Insurance Group, Inc.

<TABLE>
<CAPTION>
                                      SECOND         THIRD
                                      EXCESS        EXCESS
                                   -----------   ------------
<S>                                <C>           <C>
Company's Retention                $35,000,000   $ 60,000,000
Reinsurer's Per Occurrence Limit   $25,000,000   $ 60,000,000
Reinsurer's Term Limit             $50,000,000   $120,000,000
Minimum Premium                    $ 7,875,000   $ 14,040,000
Adjustment Rate                        0.05154%       0.09188%
Deposit Premium                    $ 8,750,000   $ 15,600,000
Quarterly Deposit Premium          $ 2,187,500   $  3,900,000
</TABLE>

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

06IL\M2U1132                                                     (BENFIELD LOGO)

<PAGE>

            SECOND AND THIRD EXCESS REINSTATEMENT PREMIUM PROTECTION
                              REINSURANCE CONTRACT
                             EFFECTIVE: JUNE 1, 2006

                                    issued to

                       Liberty American Insurance Company
                             Pinellas Park, Florida
                    Liberty American Select Insurance Company
                             Pinellas Park, Florida
                                       and
                    any and all other companies which are now
                   or may hereafter become member companies of
                     Liberty American Insurance Group, Inc.

           Second Excess Reinstatement Premium Protection Reinsurance

<TABLE>
<CAPTION>
                REINSURERS                  PARTICIPATIONS
                ----------                  --------------
<S>                                         <C>
DaVinci Reinsurance Ltd.                          9.2%
Harbor Point Services Inc.
   (for Federal Insurance Company)               10.0
Renaissance Reinsurance, Ltd.                    13.8

THROUGH BENFIELD LIMITED
Amlin Bermuda Limited                            15.0
Lloyd's Underwriters Per Signing Schedule        52.0
TOTAL                                           100.0%
</TABLE>

            Third Excess Reinstatement Premium Protection Reinsurance

<TABLE>
<CAPTION>
                REINSURERS                  PARTICIPATIONS
                ----------                  --------------
<S>                                         <C>
DaVinci Reinsurance Ltd.                          9.2%
Harbor Point Services Inc.
   (for Federal Insurance Company)               10.0
Renaissance Reinsurance, Ltd.                    13.8

THROUGH BENFIELD LIMITED
Amlin Bermuda Limited                            15.0
Lloyd's Underwriters Per Signing Schedule        52.0
TOTAL                                           100.0%
</TABLE>

06IL\M2U1132                                                     (BENFIELD LOGO)

<PAGE>

                       INTERESTS AND LIABILITIES AGREEMENT

                                       of

                            DaVinci Reinsurance Ltd.
                                Hamilton, Bermuda
            (hereinafter referred to as the "Subscribing Reinsurer")

                               with respect to the

            SECOND AND THIRD EXCESS REINSTATEMENT PREMIUM PROTECTION
                              REINSURANCE CONTRACT
                             EFFECTIVE: JUNE 1, 2006

                         issued to and duly executed by

                       Liberty American Insurance Company
                             Pinellas Park, Florida
                    Liberty American Select Insurance Company
                             Pinellas Park, Florida
                                       and
                    any and all other companies which are now
                   or may hereafter become member companies of
                     Liberty American Insurance Group, Inc.

The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:

      9.2% of the Second Excess Reinstatement Premium Protection Reinsurance
      9.2% of the Third Excess Reinstatement Premium Protection Reinsurance

This Agreement shall become effective at 12:01 a.m., Local Standard Time, June
1, 2006, and shall continue in force until 12:01 a.m., Local Standard Time, June
1, 2007, unless earlier terminated in accordance with the provisions of the
attached Contract.

The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it being understood that the Subscribing
Reinsurer shall in no event participate in the interests and liabilities of the
other reinsurers.

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

Hamilton, Bermuda, this 1st day of August in the year 2006.

                                        /s/ Justin D O'Keefe, Vice President
                                        DaVinci Reinsurance Ltd.

                                        Justin D O'Keefe
                                        (Print name and title)

06IL\M2U1132                                                     (BENFIELD LOGO)

<PAGE>

                       INTERESTS AND LIABILITIES AGREEMENT

                                       of

                            Federal Insurance Company
                              Indianapolis, Indiana
                                     through
                      Harbor Point Insurance Services Inc.
                            Bernardsville, New Jersey
            (hereinafter referred to as the "Subscribing Reinsurer")

                               with respect to the

            SECOND AND THIRD EXCESS REINSTATEMENT PREMIUM PROTECTION
                              REINSURANCE CONTRACT
                             EFFECTIVE: JUNE 1, 2006

                         issued to and duly executed by

                       Liberty American Insurance Company
                             Pinellas Park, Florida
                    Liberty American Select Insurance Company
                             Pinellas Park, Florida
                                       and
                    any and all other companies which are now
                   or may hereafter become member companies of
                     Liberty American Insurance Group, Inc.

The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:

     10.0% of the Second Excess Reinstatement Premium Protection Reinsurance
     10.0% of the Third Excess Reinstatement Premium Protection Reinsurance

This Agreement shall become effective at 12:01 a.m., Local Standard Time, June
1, 2006, and shall continue in force until 12:01 a.m., Local Standard Time, June
1, 2007, unless earlier terminated in accordance with the provisions of the
attached Contract.

The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it being understood that the Subscribing
Reinsurer shall in no event participate in the interests and liabilities of the
other reinsurers.

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

Bernardsville, New Jersey, this 14th day of August in the year 2006.

                                     /s/ Josselin Burrer, Vice President
                                     -------------------------------------------
                                     Harbor Point Insurance Services Inc. (for
                                     and on behalf of Federal Insurance Company)

                                     Josselin Burrer
                                     (Print name and title)

06IL\M2U1132                                                     (BENFIELD LOGO)

<PAGE>

                       INTERESTS AND LIABILITIES AGREEMENT

                                       of

                          Renaissance Reinsurance, Ltd.
                                Hamilton, Bermuda
            (hereinafter referred to as the "Subscribing Reinsurer")

                               with respect to the

            SECOND AND THIRD EXCESS REINSTATEMENT PREMIUM PROTECTION
                              REINSURANCE CONTRACT
                             EFFECTIVE: JUNE 1, 2006

                         issued to and duly executed by

                       Liberty American Insurance Company
                             Pinellas Park, Florida
                    Liberty American Select Insurance Company
                             Pinellas Park, Florida
                                       and
                    any and all other companies which are now
                   or may hereafter become member companies of
                     Liberty American Insurance Group, Inc.

The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:

     13.8% of the Second Excess Reinstatement Premium Protection Reinsurance
     13.8% of the Third Excess Reinstatement Premium Protection Reinsurance

This Agreement shall become effective at 12:01 a.m., Local Standard Time, June
1, 2006, and shall continue in force until 12:01 a.m., Local Standard Time, June
1, 2007, unless earlier terminated in accordance with the provisions of the
attached Contract.

The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it being understood that the Subscribing
Reinsurer shall in no event participate in the interests and liabilities of the
other reinsurers.

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

Hamilton, Bermuda, this 1st day of August in the year 2006.

                                        /s/ Justin O'Keefe, Vice President
                                        ----------------------------------------
                                        Renaissance Reinsurance, Ltd.

                                        Justin O'Keefe
                                        (Print name and title)

06IL\M2U1132                                                     (BENFIELD LOGO)

<PAGE>

                       INTERESTS AND LIABILITIES AGREEMENT

                                       of

                              Amlin Bermuda Limited
                                Hamilton, Bermuda
            (hereinafter referred to as the "Subscribing Reinsurer")

                               with respect to the

            SECOND AND THIRD EXCESS REINSTATEMENT PREMIUM PROTECTION
                              REINSURANCE CONTRACT
                             EFFECTIVE: JUNE 1, 2006

                         issued to and duly executed by

                       Liberty American Insurance Company
                             Pinellas Park, Florida
                    Liberty American Select Insurance Company
                             Pinellas Park, Florida
                                       and
                    any and all other companies which are now
                   or may hereafter become member companies of
                     Liberty American Insurance Group, Inc.

The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:

     15.0% of the Second Excess Reinstatement Premium Protection Reinsurance
     15.0% of the Third Excess Reinstatement Premium Protection Reinsurance

This Agreement shall become effective at 12:01 a.m., Local Standard Time, June
1, 2006, and shall continue in force until 12:01 a.m., Local Standard Time, June
1, 2007, unless earlier terminated in accordance with the provisions of the
attached Contract.

The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it being understood that the Subscribing
Reinsurer shall in no event participate in the interests and liabilities of the
other reinsurers.

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

Hamilton, Bermuda, this 23rd day of August in the year 2006.

                                      /s/ B. Savill, Property Treaty Underwriter
                                      ------------------------------------------
                                      Amlin Bermuda Limited

                                      B. Savill
                                      (Print name and title)

06IL\M2U1132                                                     (BENFIELD LOGO)

<PAGE>

                       INTERESTS AND LIABILITIES AGREEMENT

                                       of

                     Certain Underwriting Members of Lloyd's
                 shown in the Signing Schedules attached hereto
            (hereinafter referred to as the "Subscribing Reinsurer")

                               with respect to the

            SECOND AND THIRD EXCESS REINSTATEMENT PREMIUM PROTECTION
                              REINSURANCE CONTRACT
                             EFFECTIVE: JUNE 1, 2006

                         issued to and duly executed by

                       Liberty American Insurance Company
                             Pinellas Park, Florida
                    Liberty American Select Insurance Company
                             Pinellas Park, Florida
                                       and
                    any and all other companies which are now
                   or may hereafter become member companies of
                     Liberty American Insurance Group, Inc.

The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:

     52.0% of the Second Excess Reinstatement Premium Protection Reinsurance
     52.0% of the Third Excess Reinstatement Premium Protection Reinsurance

This Agreement shall become effective at 12:01 a.m., Local Standard Time, June
1, 2006, and shall continue in force until 12:01 a.m., Local Standard Time, June
1, 2007, unless earlier terminated in accordance with the provisions of the
attached Contract.

The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it being understood that the Subscribing
Reinsurer shall in no event participate in the interests and liabilities of the
other reinsurers.

In any action, suit or proceeding to enforce the Subscribing Reinsurer's
obligations under the attached Contract, service of process may be made upon
Mendes & Mount, 750 Seventh Avenue, New York, New York 10019.

Signed for and on behalf of the Subscribing Reinsurer in the Signing Schedules
attached hereto. On behalf of the General Manager of Lloyds of London.

06\M2U1132                                                       (BENFIELD LOGO)
Schedule A<PAGE>

                                                                        Exh 10.9

                             REIMBURSEMENT CONTRACT

                             EFFECTIVE: JUNE 1, 2006
                                   (CONTRACT)

                                     between

                       LIBERTY AMERICAN INSURANCE COMPANY
                                PINELLAS PARK, FL

                                    (Company)

                                  NAIC # 10955

                                       and

         THE STATE BOARD OF ADMINISTRATION OF THE STATE OF FLORIDA (SBA)
         WHICH ADMINISTERS THE FLORIDA HURRICANE CATASTROPHE FUND (FHCF)

PREAMBLE

The Legislature of the State of Florida has enacted Section 215.555, Florida
Statutes "Statute", which directs the SBA to administer the FHCF. This Contract
is subject to the Statute and to any administrative rule adopted pursuant
thereto, and is not intended to be in conflict therewith.

In consideration of the promises set forth in this Contract, the parties agree
as follows:

ARTICLE I - SCOPE OF AGREEMENT

As a condition precedent to the SBA's obligations under this Contract, the
Company, an Authorized Insurer or an entity writing Covered Policies under
Section 627.351, Florida Statutes, in the State of Florida, shall report to the
SBA in a specified format the business it writes which is described in this
Contract as Covered Policies.

The terms of this Contract shall determine the rights and obligations of the
parties. This Contract provides reimbursement to the Company under certain
circumstances, as described herein, and does not provide or extend insurance or
reinsurance coverage to any person, firm, corporation or other entity. The SBA
shall reimburse the Company for its Ultimate Net Loss on Covered Policies in
excess of the Company's Retention as a result of each Loss Occurrence commencing
during the Contract Year, to the extent funds are available, all as hereinafter
defined.

                                                                      FHCF-2006K
                                                            Rule 19-8.010 F.A.C.

                                       1

<PAGE>

ARTICLE II - PARTIES TO THE CONTRACT

This Contract is solely between the Company and the SBA which administers the
FHCF. In no instance shall any insured of the Company or any claimant against an
insured of the Company, or any other third party, have any rights under this
Contract, except as provided in Article XIV. The SBA will only disburse funds to
the Company, except as provided for in Article XIV of this Contract.

ARTICLE III - TERM

This Contract shall apply to Loss Occurrences which commence during the period
from 12:01 a.m., Eastern Time, June 1, 2006, to 12:01 a.m., Eastern Time, June
1, 2007 (Contract Year).

The Company must designate a coverage level, make the required selections, and
return this fully executed Contract (two originals) to the FHCF Administrator so
that the Contract is received by the FHCF Administrator no later than 5 p.m.,
Central Time, June 1, 2006. Failure to do so may result in a referral to the
Office of Insurance Regulation within the Department of Financial Services for
administrative action. Furthermore, the Company's coverage level under this
Contract will be deemed as follows:

(1)  For Companies that are a member of a National Association of Insurance
     Commissioners (NAIC) group, the same coverage level selected by the other
     Companies of the same NAIC group shall be deemed. If executed Contracts for
     none of the members of an NAIC group have been received by the FHCF
     Administrator, the coverage level from the prior Contract Year shall be
     deemed.

(2)  For Companies that are not a member of an NAIC group under which other
     Companies are active participants in the FHCF, the coverage level from the
     prior Contract Year shall be deemed.

(3)  For New Participants, as that term is defined in Article V(21), that are a
     member of an NAIC group, the same coverage level selected by the other
     Companies of the same NAIC group shall be deemed.

(4)  For New Participants that are not a member of an NAIC group under which
     other Companies are active participants in the FHCF, the 45%, 75% or 90%
     coverage levels may be selected providing that the FHCF Administrator
     receives executed Contracts within 30 calendar days of the effective date
     of the first Covered Policy, otherwise, the 45% coverage level shall be
     deemed.

Pursuant to the terms of this Contract, the SBA shall not be liable for Loss
Occurrences which commence after the effective time and date of expiration or
termination. Should this Contract expire or terminate while a Loss Occurrence
covered hereunder is in progress, the SBA shall be responsible for such Loss
Occurrence in progress in the same manner and to the same extent it would have
been responsible had the Contract expired the day following the conclusion of
the Loss Occurrence in progress.

ARTICLE IV - LIABILITY OF THE FHCF

(1)  The SBA shall reimburse the Company, with respect to each Loss Occurrence
     commencing during the Contract Year for the "Reimbursement Percentage"
     elected, this percentage times the amount of Ultimate Net Loss paid by the
     Company in excess of the Company's Retention, as adjusted pursuant to
     Article V(28), plus 5% of the reimbursed losses for Loss Adjustment Expense
     Reimbursement.

(2)  The Reimbursement Percentage will be 45% or 75% or 90%, at the Company's
     option as elected under Article XVIII.

(3)  The aggregate liability of the FHCF with respect to all Reimbursement
     Contracts covering this contract year shall not exceed the limit set forth
     under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding
     loss reimbursement calculations, see section (3)(c) of Article X herein.

(4)  Reimbursement amounts shall not be reduced by reinsurance paid or payable
     to the Company from other sources.

                                                                      FHCF-2006K
                                                            Rule 19-8.010 F.A.C.

                                       2

<PAGE>

(5)  After the end of the calendar year, the SBA shall notify insurers of the
     estimated Borrowing Capacity and the Balance of the Fund as of December 31.
     In May and October of each year, the SBA shall publish in the Florida
     Administrative Weekly a statement of the FHCF's estimated Borrowing
     Capacity and the projected Balance of the Fund as of December 31.

(6)  The obligation of the SBA with respect to all Contracts covering a
     particular Contract Year shall not exceed the Balance of the Fund as of
     December 31 of that Contract Year, together with the maximum amount the SBA
     is able to raise through the issuance of revenue bonds or other means
     available to the SBA under Section 215.555, Florida Statutes, up to the
     limit in accordance with Section 215.555(4)(c)1., Florida Statutes. The
     obligations and the liability of the SBA are more fully described in Rule
     19-8.013, Florida Administrative Code (F.A.C.). If Reimbursement Premiums,
     earnings thereon, or amounts collected as part of the premium that are
     attributable to the rapid cash buildup factor are used for debt service in
     the event of a temporary shortfall in the collection of emergency
     assessments, then the amount of the Premiums, earnings thereon, or amounts
     collected as part of the premium that are attributable to the rapid cash
     buildup factor so used will be reimbursed to the SBA without interest when
     sufficient emergency assessments are received.

ARTICLE V - DEFINITIONS

(1)  ACTUAL CLAIMS-PAYING CAPACITY OF THE FHCF

     This term means the sum of the Balance of the Fund as of December 31 of a
     Contract Year, plus any reinsurance purchased by the FHCF, plus the amount
     the SBA is able to raise through the issuance of revenue bonds up to the
     limit in accordance with Section 215.555(4)(c)1. and (6), Florida Statutes.

(2)  ACTUARIALLY INDICATED

     This term means, with respect to Premiums paid by Companies for
     reimbursement provided by the FHCF, an amount determined in accordance with
     the definition provided in Section 215.555(2)(a), Florida Statutes.

(3)  ADDITIONAL LIVING EXPENSE (ALE)

     ALE losses covered by the FHCF are not to exceed 40 percent of the insured
     value of a Residential Structure or its contents based on the coverage
     provided in the policy. Fair rental value, loss of use, loss of rents, or
     business interruption losses are not covered by the FHCF.

(4)  ADMINISTRATOR

     This term means the entity with which the SBA contracts to perform
     administrative tasks associated with the operations of the FHCF. The
     Administrator is Paragon Strategic Solutions Inc., 3600 American Boulevard
     West, Suite 700, Minneapolis, Minnesota 55431. The telephone number is
     (800) 689-3863, and the facsimile number is (800) 264-0492.

(5)  AUTHORIZED INSURER

     This term is defined in Section 624.09(1), Florida Statutes.

(6)  BORROWING CAPACITY

     This term means the amount of funds which are able to be raised by the
     issuance of revenue bonds or through other financing mechanisms, less bond
     issuance expenses and reserves.

(7)  CITIZENS PROPERTY INSURANCE CORPORATION (CITIZENS)

     This term means the entity formed under Section 627.351(6), Florida
     Statutes and refers to both Citizens Property Insurance Corporation High
     Risk Account and Citizens Property Insurance Corporation Personal Lines and
     Commercial Lines Accounts.

(8)  CONTRACT

     This term means this Reimbursement Contract for the current Contract Year.

(9)  COVERED EVENT

     This term means any one storm declared to be a hurricane by the National
     Hurricane Center, which causes insured losses in Florida, both while it is
     still a hurricane and throughout any subsequent

                                                                      FHCF-2006K
                                                            Rule 19-8.010 F.A.C.

                                       3

<PAGE>

     downgrades in storm status by the National Hurricane Center. Any storm,
     including a tropical storm, which does not become a hurricane is not a
     Covered Event.

(10) COVERED POLICY OR COVERED POLICIES

     (a)  Covered Policy, as defined in Section 215.555(2)(c), Florida Statutes,
          is further clarified to mean only that portion of a binder, policy or
          contract of insurance that insures real or personal property located
          in the State of Florida to the extent such policy insures a
          Residential Structure, as defined in definition (27) herein, or the
          contents of a Residential Structure, located in the State of Florida.

     (b)  Due to the specialized nature of the definition of Covered Policies,
          Covered Policies are not limited to only one line of business in the
          Company's annual statement required to be filed by Section 624.424,
          Florida Statutes. Instead, Covered Policies are found in several lines
          of business on the Company's annual statement. Covered Policies will
          at a minimum be reported in the Company's statutory annual statement
          as:

               -    Fire

               -    Allied Lines

               -    Farmowners Multiple Peril

               -    Homeowners Multiple Peril

               -    Commercial Multiple Peril (non liability portion, covering
                    condominiums and apartments)

               -    Inland Marine

          Note that where particular insurance exposures, e.g. mobile homes, are
          reported on an annual statement is not dispositive of whether or not
          the exposure is a Covered Policy.

     (c)  This definition applies only to the first-party property section of a
          policy pertaining strictly to the structure, its contents, appurtenant
          structures, or ALE coverage.

     (d)  Covered Policy also includes any collateral protection insurance
          policy covering personal residences which protects both the borrower's
          and the lender's financial interest, in an amount at least equal to
          the coverage for the dwelling in place under the lapsed homeowner's
          policy, if such policy can be accurately reported as required in
          Section 215.555(5), Florida Statutes. A Company will be deemed to be
          able to accurately report data if the required data, as specified in
          the Premium Formula adopted in Section 215.555(5), Florida Statutes,
          is available.

     (e)  See Article VI of this Contract for specific exclusions.

(11) DEDUCTIBLE BUY-BACK POLICIES

     This term means a specific policy that provides coverage to a policyholder
     for some portion of the policyholder's deductible under a policy issued by
     another insurer.

(12) ESTIMATED CLAIMS-PAYING CAPACITY OF THE FHCF

     This term means the sum of the projected Balance of the Fund as of December
     31 of a Contract Year, plus any reinsurance purchased by the FHCF, plus the
     most recent estimate of the Borrowing Capacity of the FHCF, determined
     pursuant to Section 215.555(4)(c), Florida Statutes.

(13) EXCESS POLICIES

     This term, for the purposes of this Contract, means a policy that provides
     insurance protection for large commercial property risks that provides a
     layer of coverage above a primary layer (which is insured by a different
     insurer) that acts much the same as a very large deductible.

(14) FLORIDA DEPARTMENT OF FINANCIAL SERVICES (DEPARTMENT)

     This term means the Florida regulatory agency, created pursuant to Section
     20.121, Florida Statutes, which is charged with regulating the Florida
     insurance market and administering the Florida Insurance Code.

(15) FLORIDA INSURANCE CODE

     This term means those chapters identified in Section 624.01, Florida
     Statutes, which are designated as the Florida Insurance Code.

                                                                      FHCF-2006K
                                                            Rule 19-8.010 F.A.C.

                                       4

<PAGE>

(16) FORMULA OR THE PREMIUM FORMULA

     This term means the Formula approved by the SBA for the purpose of
     determining the Actuarially Indicated Premium to be paid to the FHCF. The
     Premium Formula is defined as an approach or methodology which leads to the
     creation of premium rates. The resulting rates are therefore incorporated
     as part of the Premium Formula.

(17) FUND BALANCE OR BALANCE OF THE FUND AS OF DECEMBER 31

     These terms mean the "Net assets: Unrestricted" as indicated on the
     unconsolidated FHCF Statement of Net Assets for the then current Contract
     Year, to which is added: reported FHCF losses (including Loss Adjustment
     Expense) for the then current Contract Year, whether paid or unpaid by
     FHCF, as of December 31, and from which is subtracted: any reinsurance
     recovered prior to, or recoverable as of, December 31; any obligations paid
     or expected to be paid with bonding proceeds or receipts from emergency
     assessments; amounts needed for administration for the then current State
     of Florida fiscal year which have not been spent and which are not
     reflected on the FHCF Statement of Net Assets; and the amount of
     undispersed mitigation funds appropriated for the then current State of
     Florida fiscal year.

(18) INSURER GROUP

     For purposes of the coverage option election in Section 215.555(4)(b),
     Florida Statutes, Insurer Group means the group designation assigned by the
     National Association of Insurance Commissioners (NAIC) for purposes of
     filing consolidated financial statements. A Company is a member of a group
     as designated by the NAIC until such Company is assigned another group
     designation or is no longer a member of a group recognized by the NAIC.

(19) LOSS OCCURRENCE

     This term means the sum of individual insured losses incurred under Covered
     Policies resulting from the same Covered Event. "Losses" means direct
     incurred losses under Covered Policies and excludes Loss Adjustment
     Expenses.

(20) LOSS ADJUSTMENT EXPENSE REIMBURSEMENT

     (a)  Loss Adjustment Expense Reimbursement shall be 5% of the reimbursed
          losses under this Contract as provided in Article IV, pursuant to
          Section 215.555(4)(b)1., Florida Statutes.

     (b)  To the extent that loss reimbursements are limited to the Payout
          Multiple applied to each Company, the 5% Loss Adjustment Expense is
          included in the total Payout Multiple applied to each Company.

(21) NEW PARTICIPANT(S)

     This term means all Companies which begin writing Covered Policies on or
     after the beginning of the Contract Year. A Company that removes exposure
     from either Citizens entity, as that term is defined in (7) above, pursuant
     to an assumption agreement effective on or after June 1 and had written no
     other Covered Policies before June 1 is also considered a New Participant.

(22) OFFICE OF INSURANCE REGULATION

     This term means that office within the Department of Financial Services and
     which was created in Section 20.121(3), Florida Statutes.

(23) PAYOUT MULTIPLE

     This term means the multiple as calculated in accordance with Section
     215.555(4)(c), Florida Statutes, which is derived by dividing the single
     season Claims-Paying Capacity of the FHCF by the total aggregate industry
     Reimbursement Premium for the FHCF for the Contract Year billed as of
     December 31 of the Contract Year. The final Payout Multiple is determined
     once Reimbursement Premiums have been billed as of December 31 and the
     amount of bond proceeds has been determined.

(24) PREMIUM

     This term means the same as Reimbursement Premium.

(25) PROJECTED PAYOUT MULTIPLE

     The Projected Payout Multiple is used to calculate a Company's projected
     payout pursuant to Section 215.555(4)(d)2.b., Florida Statutes. The
     Projected Payout Multiple is derived by dividing

                                                                      FHCF-2006K
                                                            Rule 19-8.010 F.A.C.

                                       5

<PAGE>

     the estimated single season Claims-Paying Capacity of the FHCF by the
     estimated total aggregate industry Reimbursement Premium for the FHCF for
     the Contract Year. The Company's Reimbursement Premium as paid to the SBA
     for the Contract Year is multiplied by the Projected Payout Multiple to
     estimate the Company's coverage from the FHCF for the Contract Year.

(26) REIMBURSEMENT PREMIUM

     This term means the Premium determined by multiplying each $1,000 of
     insured value reported by the Company in accordance with Section
     215.555(5)(b), Florida Statutes, by the rate as derived from the Premium
     Formula, as described in Rule 19-8.028, F.A.C.

(27) RESIDENTIAL STRUCTURES

     This term means dwelling units used as a home or residence for other than
     transient occupancy, as that term is defined in Section 83.43(10), Florida
     Statutes. These include the primary structure and appurtenant structures
     insured under the same policy and any other structures covered under
     endorsements associated with a policy covering a residential structure, the
     principal function of which at the time of loss was as a primary or
     secondary residence. COVERED RESIDENTIAL STRUCTURES DO NOT INCLUDE any
     structures listed under Article VI herein.

(28) RETENTION

     The Company's Retention means the amount of hurricane losses under Covered
     Policies which must be incurred by the Company before it is eligible for
     reimbursement from the FHCF.

     (a)  When the Company experiences covered losses from one or two Covered
          Events during the Contract Year, the Company's full Retention shall be
          applied to each of the Covered Events.

     (b)  When the Company experiences covered losses from more than two Covered
          Events during the Contract Year, the Company's full Retention shall be
          applied to each of the two Covered Events causing the largest covered
          losses for the Company. For each other Covered Event resulting in
          covered losses, the Company's Retention shall be reduced to one-third
          of its full Retention and applied to all other Covered Events.

          1.   All reimbursement of covered losses for each Covered Event shall
               be based on the Company's full Retention until January 1 of the
               Contract Year. Adjustments to reflect a reduction to one-third of
               the full Retention shall be made as soon as practicable after
               January 1 of the Contract Year provided the Company reports its
               losses as specified in this Contract.

          2.   Adjustments to the Company's Retention shall be based upon its
               paid and outstanding losses as reported on the Company's Proof of
               Loss Reports but shall not include incurred but not reported
               losses. The Company's Proof of Loss Reports shall be used to
               determine which Covered Events constitute the Company's two
               largest Covered Events, and the reduction to one-third of the
               full Retention shall be applied to all other Covered Events for
               the Contract Year. After this initial determination, any
               subsequent adjustments shall be made by the SBA only if the
               quarterly loss reports reveal that loss development patterns have
               resulted in a change in the order of Covered Events entitled to
               the reduction to one-third of the full Retention.

     (c)  The Company's full Retention is established in accordance with the
          provisions of Section 215.555(2)(e), Florida Statutes, and shall be
          determined by multiplying the Retention Multiple by the Company's
          Reimbursement Premium for the Contract Year.

     (d)  Once the Company's limit of coverage has been exhausted, the Company
          will not be entitled to further reimbursements. The only exception is
          with regard to an entity created pursuant to 627.351(6), F.S. which is
          addressed in Article X(3)(c)2.c.

(29) RETENTION MULTIPLE

     (a)  The Retention Multiple is applied to the Company's Reimbursement
          Premium to determine the Company's Retention. The Retention Multiple
          for the 2006/2007 Contract Year shall be equal to $4.5 billion,
          adjusted based upon the reported exposure for the 2005/2006 Contract
          Year to reflect the percentage growth in exposure to the FHCF since
          2004, divided by the

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          estimated total industry Reimbursement Premium at the 90%
          reimbursement percentage level for the Contract Year as determined by
          the SBA.

     (b)  The Retention Multiple as determined under (29)(a) above shall be
          adjusted to reflect the reimbursement percentage elected by the
          Company under this Contract as follows:

          1.   If the Company elects a 90% reimbursement percentage, the
               adjusted Retention Multiple is 100% of the amount determined
               under (29)(a) above;

          2.   If the Company elects a 75% reimbursement percentage, the
               adjusted Retention Multiple is 120% of the amount determined
               under (29)(a) above; or

          3.   If the Company elects a 45% reimbursement percentage, the
               adjusted Retention Multiple is 200% of the amount determined
               under (29)(a) above.

(30) ULTIMATE NET LOSS

     (a)  This term means all losses of the Company under Covered Policies,
          prior to the application of the Company's FHCF Retention, as defined
          under (28) above, and reimbursement percentage, and excluding loss
          adjustment expense, arising from each Loss Occurrence during the
          Contract Year, provided, however, that the Company's loss shall be
          determined in accordance with the deductible level written under the
          policy sustaining the loss.

     (b)  Salvages and all other recoveries, excluding reinsurance recoveries,
          shall be first deducted from such loss to arrive at the amount of
          liability attaching hereunder.

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

     (d)  Nothing in this clause shall be construed to mean that losses under
          this Contract are not recoverable until the Company's Ultimate Net
          Loss has been ascertained.

     (e)  The SBA shall be subrogated to the rights of the Company to the extent
          of its reimbursement of the Company. The Company agrees to assist and
          cooperate with the SBA in all respects as regards such subrogation.
          The Company further agrees to undertake such actions as may be
          necessary to enforce its rights of salvage and subrogation, and its
          rights, if any, against other insurers as respects any claim, loss, or
          payment arising out of a Covered Event.

ARTICLE VI - EXCLUSIONS

This Contract does not provide reimbursement for:

(1)  Any losses not defined as being within the scope of a Covered Policy.

(2)  Any policy which excludes wind or hurricane coverage.

(3)  Any Excess Policy or Deductible Buy-Back Policy that requires individual
     ratemaking.

(4)  Any liability of the Company attributable to losses for fair rental value,
     loss of use, loss of rents, or business interruption.

(5)  Any collateral protection policy that does not meet the definition of
     Covered Policy as defined in Article V(10)(d) herein.

(6)  Any reinsurance assumed by the Company.

(7)  Any exposure for: hotels, motels, timeshares, or other similar structures
     that are rented out daily, weekly, or monthly; homeowner associations, if
     no habitational structures are insured under the policy; and shelters,
     camps or retreats.

(8)  Commercial healthcare facilities and nursing homes; however, a nursing home
     which is an integral part of a retirement community consisting primarily of
     habitational structures that are not nursing homes will not be subject to
     this exclusion.

(9)  Any exposure under commercial policies covering only appurtenant structures
     or structures that do not function as a habitational structure (e.g. a
     policy covering only the pool of an apartment complex).

(10) Personal contents in a commercial storage facility covered under a policy
     that covers only those personal contents.

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(11) Policies covering only Additional Living Expense.

(12) Any exposure for barns or barns with apartments.

(13) Any exposure for builders risk coverage or new residential structures still
     under construction.

(14) Any exposure described as a vacant property under a commercial policy.

(15) Any exposure for recreational vehicles or boats (including boat related
     equipment) requiring licensing and written on a separate policy or
     endorsement.

(16) Any liability of the Company for extra contractual obligations and excess
     of original policy limits liabilities.

(17) Losses in excess of the sum of the Balance of the Fund as of December 31 of
     the Contract Year and the amount the SBA is able to raise through the
     issuance of revenue bonds or by the use of other financing mechanisms, up
     to the limit pursuant to Section 215.555(4)(c), Florida Statutes.

(18) Any liability assumed by the Company from Pools, Associations, and
     Syndicates. Exception: Covered Policies assumed from Citizens under the
     terms and conditions of an executed assumption agreement between the
     Authorized Insurer and Citizens are covered by this Contract.

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

(20) Any liability of the Company for loss or damage caused by or resulting from
     nuclear reaction, nuclear radiation, or radioactive contamination from any
     cause, whether direct or indirect, proximate or remote, and regardless of
     any other cause or event contributing concurrently or in any other sequence
     to the loss.

(21) The FHCF does not provide coverage for water damage which is generally
     excluded under property insurance contracts and has been defined to mean
     flood, surface water, waves, tidal water, overflow of a body of water,
     storm surge, or spray from any of these, whether or not driven by wind.

(22) Specialized Fine Arts Risks as defined in Rule 19-8.028(4)(d), F.A.C.

ARTICLE VII - MANAGEMENT OF CLAIMS AND LOSSES

The Company shall investigate and settle or defend all claims and losses. All
payments of claims or losses by the Company within the terms and limits of the
appropriate coverage parts of Covered Policies shall be binding on the SBA,
subject to the terms of this Contract, including the provisions in Article XIII
relating to inspection of records and examinations.

ARTICLE VIII - LOSS REIMBURSEMENT ADJUSTMENTS

(1)  OFFSETS

     The SBA reserves the right to offset amounts payable to the SBA from the
     Company, including amounts payable under previous Contract Years, against
     any reimbursement or advance amounts due and payable to the Company from
     the SBA as a result of the liability of the SBA.

(2)  REIMBURSEMENT ADJUSTMENTS

     Section 215.555(4)(d) and (e), Florida Statutes, provides the SBA with the
     right to seek the return of excess loss reimbursements which have been paid
     to the Company along with interest thereon. Excess loss reimbursements are
     those payments made to the Company by the SBA that are in excess of the
     Company's coverage under the Contract Year. Excess loss reimbursements may
     result from adjustments to the Projected Payout Multiple or the Payout
     Multiple, incorrect exposure (Data Call) submissions or resubmissions,
     incorrect calculations of Reimbursement Premiums or Retentions,

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     incorrect Proof of Loss Reports, incorrect calculation of reinsurance
     recoveries, or subsequent readjustment of policyholder claims, including
     subrogation and salvage, or any combination of the foregoing. The Company
     will be sent an invoice showing the due date for adjustments along with the
     interest due thereon through the due date. The applicable interest rate for
     interest credits, and for interest charges for adjustments beyond the
     Company's control, will be the average rate earned by the SBA for the FHCF
     for the first five months of the Contract Year. The applicable interest
     rate for interest charges due to adjustments resulting from incorrect
     exposure submissions or Proof of Loss Reports will accrue at this rate plus
     5%. Interest will continue to accrue if not paid by the due date.

ARTICLE IX - REIMBURSEMENT PREMIUM

(1)  The Company shall, in a timely manner, pay the SBA its Reimbursement
     Premium for the Contract Year. The Reimbursement Premium for the Contract
     Year shall be calculated in accordance with Section 215.555, Florida
     Statutes, with any rules promulgated thereunder, and with Article X(2).

(2)  Since the calculation of the Actuarially Indicated Premium assumes that the
     Companies will pay their Reimbursement Premiums timely, interest charges
     will accrue under the following circumstances. A Company may choose to
     estimate its own Premium installments. However, if the Company's estimation
     is less than the provisional Premium billed, an interest charge will accrue
     on the difference between the estimated Premium and the final Premium. If a
     Company estimates its first installment, the Administrator shall bill that
     estimated Premium as the second installment as well, which will be
     considered as an estimate by the Company. No interest will accrue regarding
     any provisional Premium if paid as billed by the FHCF's Administrator,
     except in the case of an estimated second installment as set forth in this
     Article. Also, if a Company makes an estimation that is higher than the
     provisional Premium billed but is less than the final Premium, interest
     will not accrue. If the Premium payment is not received from a Company when
     it is due, an interest charge will accrue on a daily basis until the
     payment is received. Interest will also accrue on Premiums resulting from
     submissions or resubmissions finalized after December 1 of the Contract
     Year. An interest credit will be applied for any Premium which is overpaid
     as either an estimate or as a provisional Premium. Interest shall not be
     credited past December 1 of the Contract Year. The applicable interest rate
     for interest credits will be the average rate earned by the SBA for the
     FHCF for the first five months of the Contract Year. The applicable
     interest rate for interest charges will accrue at this rate plus 5%.

ARTICLE X - REPORTS AND REMITTANCES

(1)  EXPOSURES

     (a)  If the Company writes Covered Policies before June 1 of the Contract
          Year, the Company shall report to the SBA, unless otherwise provided
          in Rule 19-8.029, F.A.C., no later than the statutorily required date
          of September 1 of the Contract Year, by ZIP Code or other limited
          geographical area as specified by the SBA, its insured values under
          Covered Policies as of June 30 of the Contract Year as outlined in the
          annual reporting of insured values form, FHCF-D1A (Data Call) adopted
          for the Contract Year under Rule 19-8.029, F.A.C., and other data or
          information in the format specified by the SBA.

     (b)  If the Company first begins writing Covered Policies on or after June
          1 but prior to December 1 of the Contract Year, the Company shall
          report to the SBA, no later than March 1 of the Contract Year, by ZIP
          Code or other limited geographical area as specified by the SBA, its
          insured values under Covered Policies as of December 31 of the
          Contract Year as outlined in the Supplemental Instructions for New
          Participants section of the Data Call adopted for the Contract Year
          under Rule 19-8.029, F.A.C., and other data or information in the
          format specified by the SBA.

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                                                            Rule 19-8.010 F.A.C.

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<PAGE>

     (c)  If the Company first begins writing Covered Policies on or after
          December 1 but through and including May 31 of the Contract Year, the
          Company shall not report its exposure data for the Contract Year to
          the SBA.

     (d)  The requirement that a report is due on a certain date means that the
          report shall be in the physical possession of the FHCF's Administrator
          in Minneapolis no later than 5 p.m. on the due date. If the applicable
          due date is a Saturday, Sunday or legal holiday, then the actual due
          date will be the day immediately following the applicable due date
          which is not a Saturday, Sunday or legal holiday. For purposes of the
          timeliness of the submission, neither the United States Postal Service
          postmark nor a postage meter date is in any way determinative. Reports
          sent to the SBA in Tallahassee, Florida, will be returned to the
          sender. Reports not in the physical possession of the FHCF's
          Administrator by 5 p.m., Central Time, on the applicable due date are
          late.

     (e)  Pursuant to the provisions of Section 215.557, Florida Statutes, the
          reports of insured values under Covered Policies by ZIP Code submitted
          to the SBA pursuant to Section 215.555, Florida Statutes, are
          confidential and exempt from the provisions of Section 119.07(1),
          Florida Statutes, and Section 24(a), Art. I of the State Constitution.

(2)  REIMBURSEMENT PREMIUM

     (a)  If the Company writes Covered Policies before June 1 of the Contract
          Year, the Company shall pay the FHCF its Reimbursement Premium in
          installments due on or before August 1, October 1, and December 1 of
          the Contract Year in amounts to be determined by the FHCF. However, if
          the Company's Reimbursement Premium for the prior Contract Year was
          less than $5,000, the Company's full provisional Reimbursement
          Premium, in an amount equal to the Reimbursement Premium paid in the
          prior year, shall be due in full on or before August 1 of the Contract
          Year. The Company will be invoiced for amounts due, if any, beyond the
          provisional Reimbursement Premium payment, on or before December 1 of
          the Contract Year. In addition, if a company has been placed under
          regulatory supervision by a State or control of the Company has been
          transferred through any legal or regulatory proceeding to a state
          regulator or court appointed receiver or rehabilitator (referred to in
          the aggregate as "State action"), the full annual provisional
          Reimbursement Premium as billed and any outstanding balances will be
          due on August 1, or the date that such State action occurs after
          August 1 of the Contract Year.

     (b)  A New Participant that first begins writing Covered Policies on or
          after June 1 but prior to December 1 of the Contract Year shall pay
          the FHCF a provisional Reimbursement Premium of $1,000 upon execution
          of this Contract. The Administrator shall calculate the Company's
          actual Reimbursement Premium for the period based on its actual
          exposure as of December 31 of the Contract Year, as reported on or
          before March 1. To recognize that New Participants have limited
          exposure during this period, the actual Premium as determined by
          processing the Company's exposure data shall then be divided in half,
          the provisional Premium shall be credited, and the resulting amount
          shall be the total Premium due for the Company for the remainder of
          the Contract Year. However, if that amount is less than $1,000, then
          the Company shall pay $1,000. The Premium payment is due no later than
          May 1 of the Contract Year. The Company's Retention and coverage will
          be determined based on the total Premium due as calculated above.

     (c)  A New Participant that first begins writing Covered Policies on or
          after December 1 but through and including May 31 of the Contract Year
          shall pay the FHCF a Reimbursement Premium of $1,000 upon execution of
          this Contract.

     (d)  The requirement that the Reimbursement Premium is due on a certain
          date means that the Premium shall be in the physical possession of the
          FHCF no later than 5 p.m., Eastern Time, on the due date applicable to
          the particular installment. If remitted by check to the FHCF's Post
          Office Box, the check shall be physically in the Post Office Box
          550261, Tampa, FL 33655-0261, as set out on the invoice sent to the
          Company. If remitted by check by hand delivery, the check shall be
          physically on the premises of the FHCF's bank in Tampa, Florida, as
          set out on the invoice sent to the Company. If remitted
          electronically, the wire transfer shall have been completed to the
          FHCF's account at its bank in Tampa, Florida, as set out on

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<PAGE>

          the invoice sent to the Company. If the applicable due date is a
          Saturday, Sunday or legal holiday, then the actual due date will be
          the day immediately following the applicable due date which is not a
          Saturday, Sunday or legal holiday. For purposes of the timeliness of
          the remittance, neither the United States Postal Service postmark nor
          a postage meter date is in any way determinative. Premium checks sent
          to the SBA in Tallahassee, Florida, or to the FHCF's Administrator in
          Minneapolis, Minnesota, will be returned to the sender. Reimbursement
          Premiums not in the physical possession of the FHCF by 5 p.m., Eastern
          Time, on the applicable due date are late.

     (e)  Except as required by Section 215.555(7)(c), Florida Statutes, or as
          described in the following sentence, Reimbursement Premiums, together
          with earnings thereon, received in a given Contract Year will be used
          only to pay for losses attributable to Covered Events occurring in
          that Contract Year or for losses attributable to Covered Events in
          subsequent Contract Years and will not be used to pay for losses in
          prior years or for debt service on revenue bonds. Amounts collected as
          part of the premium that are attributable to the rapid cash buildup
          factor, as permitted by Section 215.555(5)(b), Florida Statutes may be
          used to pay for losses attributable to prior years. Pursuant to
          Section 215.555(6)(a)1., Florida Statutes, Premiums, earnings thereon,
          and amounts collected as part of the premium that are attributable to
          rapid cash buildup may be used for payments relating to revenue bonds
          in the event Emergency Assessments are insufficient. If Premiums,
          earnings thereon, or amounts collected as part of the premium that are
          attributable to rapid cash buildup are used for debt service, then the
          amount of the Premiums, earnings thereon, or amounts collected as part
          of the premium that are attributable to rapid cash buildup so used
          shall be returned, without interest, to the Fund when Emergency
          Assessments remain available after making payment relating to the
          revenue bonds and any other purposes for which Emergency Assessments
          were levied.

(3)  CLAIMS AND LOSSES

     (a)  IN GENERAL

          1.   Claims and losses resulting from Loss Occurrences commencing
               during the Contract Year shall be reported by the Company and
               reimbursed by the FHCF as provided herein and in accordance with
               the Statute, this Contract, and any rules adopted pursuant to the
               Statute. For a Company participating in a quota share primary
               insurance agreement(s) with Citizens Property Insurance
               Corporation High Risk Account, Citizens and the Company shall
               report only their respective portion of losses under the quota
               share primary insurance agreement(s). Pursuant to Section
               215.555(4)(c), Florida Statutes, the SBA is obligated to pay for
               losses not to exceed the Actual Claims-Paying Capacity of the
               FHCF, up to the limit in accordance with Section 215.555(4)(c)1.,
               Florida Statutes, for any one Contract Year.

          2.   If the Company is in non-compliance with Section 215.555, Florida
               Statutes for any Contract Year, including deadlines for sending
               in Contracts, addendums or attachments to Contracts, Data Call
               submissions or resubmissions, loss reports, or in responding to
               SBA exam requirements, the SBA reserves the right to withhold
               reimbursements or advances until such time the Company becomes
               compliant.

     (b)  LOSS REPORTS

          1.   At the direction of the SBA, the Company shall report its
               projected Ultimate Net Loss from each Loss Occurrence to provide
               information to the SBA in determining any potential liability for
               possible reimbursable losses under the Contract on the Interim
               Loss Report, Form FHCF-L1A, as adopted in Rule 19-8.029, F.A.C.
               Interim Loss Reports (including subsequent Interim Loss Reports
               if required by the SBA) will be due in no less than fourteen days
               from the date of the notice from the SBA that such a report is
               required.

          2.   FHCF loss reimbursements will be issued based on Ultimate Net
               Loss information reported by the Company on the Proof of Loss
               Report, Form FHCF-L1B, as adopted in Rule 19-8.029, F.A.C. To
               qualify for reimbursement, the Proof of Loss Report must have the

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<PAGE>

               original signatures of two executive officers authorized by the
               Company to sign the report. While a Company may submit a Proof of
               Loss Report requesting reimbursement at any time following a Loss
               Occurrence, all Companies shall submit a mandatory Proof of Loss
               Report for each Loss Occurrence no earlier than December 1 and no
               later than December 31 of the Contract Year during which the
               Covered Event(s) occurs using the most current data available,
               regardless of the amount of Ultimate Net Loss or the amount of
               loss reimbursements or advances already received. Reports may be
               faxed only if the Company does not qualify for a reimbursement.

          3.   Quarterly thereafter until all claims and losses resulting from a
               Loss Occurrence are fully discharged or the Company has received
               its full coverage under the Contract Year in which the Loss
               Occurrence(s) occurred, the Company shall submit updated Proof of
               Loss Reports for each Loss Occurrence, as applicable. If the
               Company's Retention must be recalculated as the result of an
               exposure resubmission, and if the recalculated Retention changes
               the FHCF's reimbursement obligations, then the Company shall
               submit additional Proof of Loss Reports for recalculation of the
               FHCF's obligations.

          4.   Annually thereafter, all Companies shall submit a mandatory
               year-end Proof of Loss Report for each Loss Occurrence, as
               applicable, using the most current data available. This Proof of
               Loss Report shall be filed no earlier than December 1 and no
               later than December 31 of each year and shall continue until the
               earlier of the expiration of the commutation period described in
               (3)(d) below or until all claims and losses resulting from the
               Loss Occurrence are fully discharged including any adjustments to
               such losses due to salvage or other recoveries.

          5.   The SBA, except as noted below, will determine and pay, within 30
               days or as soon as practicable after receiving Proof of Loss
               Reports, the reimbursement amount due based on losses paid by the
               Company to date and adjustments to this amount based on
               subsequent quarterly information. The adjustments to
               reimbursement amounts shall require the SBA to pay, or the
               Company to return, amounts reflecting the most recent
               determination of losses. The FHCF shall have the right to conduct
               a claims examination prior to the issuance of any advances or
               reimbursements submitted by Companies that have been placed under
               regulatory supervision by a State or where control has been
               transferred through any legal or regulatory proceeding to a state
               regulator or court appointed receiver or rehabilitator.

          6.   If a Covered Event occurs during the Contract Year, but after
               December 31, at the direction of the SBA, Companies shall file an
               Interim Loss Report within 30 days after the Covered Event and
               Proof of Loss Reports quarterly thereafter. Subparagraphs 2-5
               above regarding Proof of Loss Reports shall apply.

          7.   All Proof of Loss Reports received will be compared with the
               FHCF's exposure data to establish the facial reasonableness of
               the reports. The SBA may also review the results of current and
               prior Contract Year exposure and loss examinations to determine
               the reasonableness of the reported losses. Except as noted in
               paragraph 4. above, Companies meeting these tests for
               reasonableness will be scheduled for reimbursement. Companies not
               meeting these tests for reasonableness will be handled on a
               case-by-case basis and will be contacted to provide specific
               information regarding their individual book of business. The
               discovery of errors in a Company's reported exposure under the
               Data Call may require a resubmission of the current Contract Year
               Data Call which, as the Data Call impacts the Company's premium,
               retention, and coverage for the Contract Year, will be required
               before the Company's request for reimbursement or an advance will
               be fully processed by the Administrator.

     (c)  LOSS REIMBURSEMENT CALCULATIONS

          1.   In general, the Company's paid Ultimate Net Losses must exceed
               its full FHCF Retention for a specific Covered Event before any
               reimbursement is payable from the FHCF for that Covered Event. As
               described in Article V(28), Retention adjustments will be made
               after

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               January 1 of the Contract Year. No interest is payable on
               additional payments to the Company due to this type of Retention
               adjustment. Each Company sustaining reimbursable losses will
               receive the amount of reimbursement due under the Contract up to
               the amount of the Company's payout. If more than one Covered
               Event occurs in any one Contract Year, any reimbursements due
               from the FHCF shall take into account the Company's Retention for
               each Covered Event. However, the Company's reimbursements from
               the FHCF for all Covered Events occurring during the Contract
               Year shall not exceed, in aggregate, the Projected Payout
               Multiple or Payout Multiple, as applicable, times the individual
               Company's Reimbursement Premium for the Contract Year.

          2.   In determining reimbursements under this Contract, the SBA shall:

               a.   First, reimburse Companies qualified as limited
                    apportionment companies under Section 627.351(2)(b)3.,
                    Florida Statutes, for the amount (if any) of reimbursement
                    due under the individual Company's Contract, but not to
                    exceed the lesser of $10 million or an amount equal to 10
                    times the individual Company's Reimbursement Premium for the
                    Contract Year. This provision does not apply if the
                    projected Balance of the Fund as of December 31 of the
                    Contract Year, exclusive of any bonding capacity of the
                    FHCF, exceeds $2 billion. Further, if the Company is a
                    member of an NAIC group, the Company may not receive
                    reimbursement under this provision if any other member of
                    the NAIC group has received reimbursement under this
                    provision.

               b.   Next, reimburse each of the Companies for the amount (if
                    any) of reimbursement due under the individual Company's
                    Contract, but not to exceed for all Loss Occurrences, an
                    amount equal to the Projected Payout Multiple or the Payout
                    Multiple, as applicable, times the individual Company's
                    Reimbursement Premium for the Contract Year. For a limited
                    apportionment company, any amount payable under this
                    provision shall be reduced by the amount (if any) payable
                    under (a) above.

               c.   Thereafter, pursuant to Section 215.555(4)(d)2.c., Florida
                    Statutes, establish the prorated reimbursement level at the
                    highest level for which any remaining fund balance or bond
                    proceeds (as limited by Section 215.555(4)(c), Florida
                    Statutes) are sufficient to reimburse entities created
                    pursuant to Section 627.351(6), Florida Statutes, for
                    reimbursable losses exceeding the amounts payable pursuant
                    to (b) above for the Contract Year. The proration shall be
                    determined based on each entity's share of their aggregate
                    reimbursable losses exceeding the amounts payable pursuant
                    to (b) above. Any additional reimbursements pursuant to this
                    paragraph shall not include losses under an entity's FHCF
                    Retention and will be at the 90% Reimbursement Percentage.
                    In order to determine the amount available for additional
                    reimbursements, the SBA will review reported loss
                    information from all Companies and determine that all
                    Companies which received payments for reimbursable losses
                    but which did not exceed their projected payout have settled
                    all, or substantially all, of their claims eligible for
                    reimbursement. The SBA will then determine the remaining
                    amount of Claims-Paying Capacity available for such
                    additional reimbursements.

          3.   Reserve established. When a Covered Event occurs in a subsequent
               Contract Year when reimbursable losses are still being paid for a
               Covered Event in a previous Contract Year, the SBA will establish
               a reserve for the outstanding reimbursable losses for the
               previous Contract Year, based on the length of time the losses
               have been outstanding, the amount of losses already paid, the
               percentage of incurred losses still unpaid, and any other factors
               specific to the loss development of the Covered Events involved.

     (d)  COMMUTATION

          1.   Not less than 36 months or more than 60 months after the end of
               the Contract Year, the Company shall report to the FHCF all
               claims and losses, both reported and unreported, for the Contract
               Year which are not finally settled and which may be reimbursable
               losses under this Contract. The Company and the SBA or their
               respective representatives may, by

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               mutual agreement, determine the capitalized value of all claims
               and losses, both reported and unreported, resulting from Loss
               Occurrences commencing during the Contract Year, and the Company
               shall provide the SBA with a copy of a written opinion on such
               capitalized value by the Company's certifying actuary. Payment by
               the SBA of its portion of any amount or amounts so mutually
               agreed and certified by the Company's certifying actuary shall
               constitute a complete and final release of the SBA in respect of
               all claims and losses, both reported and unreported, under this
               Contract.

          2.   If agreement on capitalized value cannot be reached within 60
               days after the Company reports its claims and losses to the FHCF,
               the Company and the SBA may mutually appoint an actuary or
               appraiser to investigate, determine and capitalize such claims or
               losses. If both parties then agree, the SBA shall pay its portion
               of the amount so determined to be the capitalized value of such
               claims or losses.

          3.   If the parties fail to agree, then any difference shall be
               settled by a panel of three actuaries, one to be chosen by each
               party and the third by the two so chosen. If either party does
               not appoint an actuary within 30 days, the other party may
               appoint two actuaries. If the two actuaries fail to agree on the
               selection of a third actuary within 30 days of their appointment,
               each of them shall name two, of whom the other shall decline one
               and the decision shall be made by drawing lots. All the actuaries
               shall be regularly engaged in the valuation of property claims
               and losses and shall be members of the Casualty Actuarial Society
               and of the American Academy of Actuaries. None of the actuaries
               shall be under the control of either party to this Contract. Each
               party shall submit its case to its actuary within 30 days of the
               appointment of the third actuary. The decision in writing of any
               two actuaries, when filed with the parties hereto, shall be final
               and binding on both parties.

          4.   The reasonable and customary expense of the actuaries and of the
               commutation (as a result of 2. and 3. above) shall be equally
               divided between the two parties. Said commutation shall take
               place in Tallahassee, Florida, unless some other place is
               mutually agreed upon by the Company and the SBA.

(4)  ADVANCES

     (a)  In accordance with Section 215.555(4)(e), Florida Statutes, the SBA
          may make advances for loss reimbursements as defined herein, at market
          interest rates, to the Company in accordance with Section
          215.555(4)(e), Florida Statutes. An advance is an early reimbursement
          which allows the Company to continue to pay claims in a timely manner.
          Advances will be made based on the Company's Ultimate Net Loss, on an
          incurred basis, as reported on a Proof of Loss Report, and shall
          include Loss Adjustment Expense Reimbursement as calculated by the
          FHCF. In order to be eligible for an advance, the Company must submit
          its exposure data for the Contract Year as required under paragraph
          (1) of this Article. Except as noted below, advances, if approved,
          will be made as soon as practicable after the SBA receives a written
          request, signed by two officers of the Company, for an advance of a
          specific amount and any other information required for the specific
          type of advance under subparagraphs (c) and (e) below. All
          reimbursements due to a Company shall be offset against any amount of
          outstanding advances plus the interest due thereon.

     (b)  For advances or excess advances, which are advances that are in excess
          of the amount to which the Company is entitled, the market interest
          rate shall be the prime rate as published in the Wall Street Journal
          on the first business day of the Contract Year. This rate will be
          adjusted annually on the first business day of each subsequent
          Contract Year, regardless of whether the Company executes subsequent
          Contracts. All interest charged will commence on the date the SBA
          issues a check for an advance and will cease on the date upon which
          the FHCF has received the Company's Proof of Loss Report(s) for the
          Covered Event(s) for which the Company qualifies for reimbursement(s).
          If such reimbursement(s) are less than the amount of outstanding
          advance(s) issued to the Company, interest will continue to accrue on
          the outstanding balance of the advance(s) until subsequent Proof of
          Loss Reports qualify the Company for

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          reimbursement under any Covered Event equal to or exceeding the amount
          of any outstanding advance(s). Interest shall be billed on a periodic
          basis. If it is determined that the Company received funds in excess
          of those to which it was entitled, the interest as to those sums will
          not cease on the date of the receipt of the Proof of Loss Report but
          will continue until the Company reimburses the FHCF for the
          overpayment.

     (c)  If the Company has an outstanding advance balance as of December 31 of
          this or any other Contract Year, the Company is required to have an
          actuary certify outstanding and incurred but not reported losses as
          reported on the applicable December Proof of Loss Report.

     (d)  The specific type of advances enumerated in the Section 215.555,
          Florida Statutes, follow.

          1.   Advances to Companies to prevent insolvency, as defined under
               Article XIV of this Contract.

               a.   Section 215.555(4)(e)1., Florida Statutes, provides that the
                    SBA shall advance to the Company amounts necessary to
                    maintain the solvency of the Company, up to 50 percent of
                    the SBA's estimate of the reimbursement due to the Company.

               b.   In addition to the requirements outlined in subparagraph
                    (4)(a) above, the requirements for an advance to a Company
                    to prevent insolvency are that the Company demonstrates it
                    is likely to qualify for reimbursement and that the
                    immediate receipt of moneys from the SBA is likely to
                    prevent the Company from becoming insolvent, and the Company
                    provides the following information:

                    i.   Current assets;

                    ii.  Current liabilities other than liabilities due to the
                         Covered Event;

                    iii. Current surplus as to policyholders;

                    iv.  Estimate of other expected liabilities not due to the
                         Covered Event; and

                    v.   Amount of reinsurance available to pay claims for the
                         Covered Event under other reinsurance treaties.

               c.   The SBA's final decision regarding an application for an
                    advance to prevent insolvency shall be based on whether or
                    not, considering the totality of the circumstances,
                    including the SBA's obligations to provide reimbursement for
                    all Covered Events occurring during the Contract Year,
                    granting an advance is essential to allowing the entity to
                    continue to pay additional claims for a Covered Event in a
                    timely manner.

          2.   Advances to entities created pursuant to Section 627.351(6),
               Florida Statutes.

               a.   Section 215.555(4)(e)2., Florida Statutes, provides that the
                    SBA may advance to an entity created pursuant to Section
                    627.351(6), Florida Statutes, up to 90% of the lesser of the
                    SBA's estimate of the reimbursement due or the entity's
                    share of the actual aggregate Reimbursement Premium for that
                    Contract Year, multiplied by the current available liquid
                    assets of the FHCF.

               b.   In addition to the requirements outlined in subparagraph
                    (4)(a) above, the requirements for an advance to entities
                    created pursuant to Section 627.351(6), Florida Statutes are
                    that the entity must demonstrate to the SBA that the advance
                    is essential to allow the entity to pay claims for a Covered
                    Event.

          3.   Advances to limited apportionment companies. Section
               215.555(4)(e)3., Florida Statutes, provides that the SBA may
               advance the amount of estimated reimbursement payable to limited
               apportionment companies.

     (e)  In determining whether or not to grant an advance and the amount of an
          advance, the SBA:

          1.   Shall determine whether its assets available for the payment of
               obligations are sufficient and sufficiently liquid to fulfill its
               obligations to other Companies prior to granting an advance;

          2.   Shall review and consider all the information submitted by such
               Companies;

          3.   Shall review such Companies' compliance with all requirements of
               Section 215.555, Florida Statutes;

          4.   Shall consult with all relevant regulatory agencies to seek all
               relevant information;

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          5.   Shall review the damage caused by the Covered Event and when that
               Covered Event occurred; and

          6.   Shall consider any other factors deemed relevant.

     (f)  In situations where a Company has been placed under regulatory
          supervision by a State, or where control has been transferred through
          any legal or regulatory proceeding to a state regulator, court
          appointed receiver or rehabilitator, or a state insurance guarantee
          association, all requirements of the Company outlined herein shall
          remain applicable and must be met prior to the issuance of any advance
          of reimbursements for which the Company may be eligible to receive
          under the Contract.

     (g)  Any amount advanced by the SBA shall be used by the Company only to
          pay claims of its policyholders for the Covered Event or Covered
          Events which have precipitated the immediate need to continue to pay
          additional claims as they become due.

(5)  DELINQUENT PREMIUM PAYMENTS

     Failure to submit a Premium or Premium installment when due is a violation
     of the terms of this Contract and Section 215.555, Florida Statutes.
     Interest on late payments shall be due as set forth in Article IX(2) of
     this Contract.

(6)  INADEQUATE DATA SUBMISSIONS

     If exposure data or other information required to be reported by the
     Company under the terms of this Contract is not received by the FHCF in the
     format specified by the FHCF and is inadequate to the extent that the FHCF
     requires resubmission of data, the Company will be required to pay the FHCF
     a resubmission fee of $1,000. The $1,000 fee is also applicable to exposure
     resubmissions made as a result of examinations of the Company's exposure
     and claims data. A resubmission of exposure data may delay the processing
     of the Company's request for reimbursement or an advance.

(7)  DELINQUENT SUBMISSIONS

     Failure to submit an exposure submission or resubmission, or loss reports,
     when due is a violation of the terms of this Contract and Section 215.555,
     Florida Statutes.

ARTICLE XI - TAXES

In consideration of the terms under which this Contract is issued, the Company
agrees to make no deduction in respect of the Premium herein when making premium
tax returns to the appropriate authorities. Should any taxes be levied on the
Company in respect of the Premium herein, the Company agrees to make no claim
upon the SBA for reimbursement in respect of such taxes.

ARTICLE XII - ERRORS AND OMISSIONS

Any inadvertent delay, omission, or error on the part of the SBA shall not be
held to relieve the Company from any liability which would attach to it
hereunder if such delay, omission, or error had not been made.

ARTICLE XIII - INSPECTION OF RECORDS

The Company shall allow the SBA to inspect, examine, and verify, at reasonable
times, all records of the Company relating to the Covered Policies under this
Contract, including Company files concerning claims, losses, or legal
proceedings regarding subrogation or claims recoveries which involve this
Contract, including premium, loss records and reports involving exposure data on
Covered Policies. This right by the SBA to inspect, examine, and verify shall
survive the completion and closure of an exposure examination or loss
examination file and the termination of the Contract. The Company shall have no
right to re-open an exposure or loss reimbursement examination once closed and
the findings have been accepted by the Company; any re-opening shall be at the
sole discretion of the SBA. All discovered errors, inadvertent omissions, and
typographical errors associated with the data reporting of insured values,
discovered prior to the closing of the file and acceptance of the examination
findings by the

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Company, shall be corrected to reflect the proper values. The Company shall
retain its records in accordance with the requirements for records retention
regarding exposure reports and claims reports outlined herein, and in any
administrative rules adopted pursuant to Section 215.555, Florida Statutes.
Companies writing covered collateral protection policies, as defined in
definition (10)(d) of Article V herein, must be able to provide documentation
that the policy covers personal residences, protects both the borrower's and
lender's interest, and that the coverage is in an amount at least equal to the
coverage for the dwelling in place under the lapsed homeowner's policy.

(1)  EXAMINATION REQUIREMENTS FOR EXPOSURE VERIFICATION

     The Company shall retain complete and accurate records, in policy level
     detail, of all exposure data submitted to the SBA in any Contract Year
     until the SBA has completed its examination of the Company's exposure
     submissions. The Company shall also retain complete and accurate records of
     any completed exposure examination for any Contract Year in which the
     Company incurred losses until the completion of the loss reimbursement
     examination for that Contract Year. The records to be retained shall
     include the exam file which supports the exposure reported to the SBA and
     any other information which would allow for a complete examination of the
     Company's reported exposure data. The exam file shall be prepared according
     to the SBA Exam File Specifications outlined in the Data Call. The Company
     must also have available, at the time of the examination, a copy of its
     underwriting manual, a copy of its rating manual, and staff to respond to
     the questions of the SBA or its agents. The Company is also required to
     retain declarations pages and policy applications to support reported
     exposure. To meet the requirement that the application must be retained,
     the Company may retain either the actual application or may retain the
     actual application in an electronic format. A complete list of records to
     be retained are set forth in Form FHCF-EAP1, adopted in Rule 19-8.030,
     F.A.C.

(2)  EXAMINATION REQUIREMENTS FOR LOSS REPORTS

     The Company shall retain complete and accurate records of all reported
     losses and/or advances submitted to the SBA until the SBA has completed its
     examination of the Company's reimbursable losses. The records to be
     retained are set forth as part of the Proof of Loss Report, Form FHCF-L1B,
     adopted in Rule 19-8.029, F.A.C., and Form FHCF-LAP1, adopted in Rule
     19-8.030, F.A.C. The Company must also retain the required exposure exam
     file for the Contract Year in which the loss occurred, and must have
     available any other information which would allow for a complete
     examination of the Company's losses.

(3)  EXAMINATION PROCEDURES

     (a)  The FHCF will send an examination notice to the Company providing the
          commencement date of the examination, the site of the examination, any
          accommodation requirements of the examiner, and the reports and data
          which must be assembled by the Company and forwarded to the FHCF upon
          request. The Company shall be prepared to choose one location in which
          to be examined, unless otherwise specified by the SBA.

     (b)  The reports and data are required to be forwarded to the FHCF as set
          forth in an examination notice letter. The information is then
          forwarded to the examiner. If the FHCF receives accurate and complete
          records as requested, the examiner will contact the Company to inform
          the Company as to what policies or other documentation will be
          required once the examiner is on site. Any records not required to be
          provided to the examiner in advance shall be made available at the
          time the examiner arrives on site.

     (c)  At the conclusion of the examiner's work and the management review of
          the examiner's report, findings, recommendations, and work papers, the
          FHCF will forward a preliminary draft of the examination report to the
          Company and require a response from the Company by a date certain as
          to the examination findings and recommendations.

     (d)  If the Company accepts the examination findings and recommendations,
          and there is no recommendation for resubmission of the Company's
          exposure data, the examination report will be finalized and the exam
          file closed.

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<PAGE>

     (e)  If the Company disputes the examiner's findings, the areas in dispute
          will be resolved by a meeting or a conference call between the Company
          and FHCF management.

     (f)  1.   The recommendation of a loss reimbursement examination could
               require the Company to resubmit or update its loss reports or
               exposure data.

          2.   If the recommendation of the examiner is to resubmit the
               Company's exposure data for the Contract Year in question, then
               the FHCF will send the Company a letter outlining the process for
               resubmission and including a deadline to resubmit. The
               resubmission will include a data file to be submitted to the
               FHCF's Administrator and an exam file to be submitted to the
               offices of the SBA. The resubmission is also required to be
               accompanied by a detailed written description of the specific
               changes made to the resubmitted data. Once the resubmission is
               received by the FHCF's Administrator, the FHCF's Administrator
               calculates a revised Reimbursement Premium for the Contract Year
               which has been examined. The SBA shall then review the
               resubmission with respect to the examiner's findings, and accept
               the resubmission or contact the Company with any questions
               regarding the resubmission. Once the SBA has accepted the
               resubmission as a sufficient response to the examiner's findings,
               the FHCF's Administrator will send the Company an invoice for any
               Reimbursement Premium and interest due or to refund Reimbursement
               Premium, as the case may be. Once the resubmission has been
               approved, the exam file is closed.

          3.   If the recommendation of the examiner is either to resubmit the
               Company's exposure data for the Contract Year in question or
               giving the option to pay the estimated Premium difference, then
               the FHCF will send the Company a letter outlining the process for
               resubmission or for paying the estimated Premium difference and
               including a deadline for the resubmission or the payment to be
               received by the FHCF's Administrator. If the Company chooses to
               resubmit, the same procedures outlined in Article XIII(3)(f)2.
               apply.

          4.   If the recommendation of the examiner is to update the Company's
               Proof of Loss Report(s) for the Contract Year under review, the
               FHCF will send the Company a letter outlining the process for
               submitting the Proof of Loss Report(s) and including a deadline
               to file. The updated Proof of Loss Report(s) will be submitted to
               the FHCF's Administrator with a copy of the Proof of Loss
               Report(s) and a supporting detailed claims listing to be
               submitted to the offices of the SBA. The report is required to be
               accompanied by a detailed written description of the specific
               changes made. Once the Proof of Loss Report(s) is received by the
               FHCF Administrator, the FHCF's Administrator will calculate a
               revised reimbursement. The SBA shall then review the submitted
               Proof of Loss Report(s) with respect to the examiner's findings,
               and accept the Proof of Loss Report(s) as filed or contact the
               Company with any questions. Once the SBA has accepted the
               corrected Proof of Loss Report(s) as a sufficient response to the
               examiner's findings, the FHCF's Administrator will send the
               Company an invoice for any overpayments and interest due or the
               additional reimbursement owed the Company, as the case may be.
               Once the Proof of Loss Report(s) is approved, the exam file is
               closed.

     (g)  If the Company continues to dispute the examiner's findings and/or
          recommendations and no resolution of the disputed matters is obtained
          through discussions between the Company and FHCF management, then the
          process within the SBA is at an end and further administrative
          remedies may be pursued under Chapter 120, Florida Statutes.

     (h)  The examiner's list of errors is made available in the examination
          report sent to the Company. Given that the examination was based on a
          sample of the Company's policies or claims rather than the whole
          universe of the Company's Covered Policies or reported claims, the
          error list is not intended to provide a complete list of errors but is
          intended to indicate what information needs to be reviewed and
          corrected throughout the Company's book of Covered Policy business or
          claims information to ensure more complete and accurate reporting to
          the FHCF.

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(4)  COSTS OF THE EXAMINATIONS

     The costs of the examinations shall be borne by the SBA. However, in order
     to remove any incentive for a Company to delay preparations for an
     examination, the SBA shall be reimbursed by the Company for any examination
     expenses incurred in addition to the usual and customary costs, which
     additional expenses were incurred as a result of the Company's failure,
     despite proper notice, to be prepared for the examination or as a result of
     a Company's failure to provide requested information. All requested
     information must be complete and accurate. The Company shall be notified of
     any administrative remedies which may be obtained under Chapter 120,
     Florida Statutes.

ARTICLE XIV - INSOLVENCY OF THE COMPANY

Company shall notify the FHCF immediately upon becoming insolvent. Pursuant to
Section 215.555(4)(g), Florida Statutes, the FHCF is required to pay the "net
amount of all reimbursement moneys" due an insolvent insurer to the Florida
Insurance Guaranty Association (FIGA) for the benefit of Florida policyholders.
For the purpose of this Contract, a Company is insolvent when an order of
liquidation with a finding of insolvency has been entered by a court of
competent jurisdiction. In light of the need for an immediate infusion of funds
to enable policyholders of insolvent companies to be paid for their claims, the
SBA may enter into agreements with FIGA allowing exposure and loss examinations
to take place immediately without the usual notice and response time limitations
and allowing the FHCF to make loss reimbursements (net of any amounts payable to
the SBA from the Company or FIGA) to FIGA before the examinations are completed
and before the response time expires for claims filing by reinsurers and
financial institutions, which have a priority interest in those funds pursuant
to Section 215.555(4)(g), Florida Statutes. Such agreements must ensure the
availability of the necessary records and adequate security must be provided so
that if the FHCF determines that it overpaid FIGA on behalf of the Company, or
if claims are filed by reinsurers or financial institutions having a priority
interest in these funds, that the funds will be repaid to the FHCF by FIGA with
in a reasonable time.

ARTICLE XV - TERMINATION

The FHCF and the obligations of both parties under this Contract can be
terminated only as may be provided by law or applicable rules.

ARTICLE XVI - VIOLATIONS

Pursuant to the provisions of Section 215.555(10), Florida Statutes, any
violation of the terms of this Contract by the Company constitutes a violation
of the Insurance Code of the State of the Florida. Pursuant to the provisions of
Section 215.555(11), Florida Statutes, the SBA is authorized to take any action
necessary to enforce any administrative rules adopted pursuant to Section
215.555, Florida Statutes, and the provisions and requirements of this Contract.

ARTICLE XVII - APPLICABLE LAW

(1)  APPLICABLE LAW: This Contract shall be governed by and construed according
     to the laws of the State of Florida in respect of any matter relating to or
     arising out of this Contract.

(2)  NOTICE OF RIGHTS: Pursuant to Chapter 120, Florida Statutes, and the
     Uniform Rules of Procedure, codified as Chapters 28-101 through 28-111,
     F.A.C., a person whose substantial interests are affected by a decision of
     the SBA regarding the FHCF may request a hearing within 21 days shall have
     waived his or her right to a hearing. The hearing may be a formal hearing
     or an informal hearing pursuant to the provisions of Sections 120.569 and
     120.57, Florida Statutes. The petition must be filed (received) in the
     office of the Agency Clerk, General Counsel's Office, State Board of
     Administration of Florida, P.O. Box 13300, Tallahassee, FL 32317-3300,
     within the 21 day period.

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ARTICLE XVIII - REIMBURSEMENT CONTRACT ELECTIONS

REIMBURSEMENT PERCENTAGE

For purposes of determining reimbursement (if any) due the Company under this
Contract and in accordance with the Statute, the Company has the option to elect
a 45% or 75% or 90% reimbursement percentage under this Contract. If the Company
is a member of an NAIC group, all members must elect the same reimbursement
percentage, and the individual executing this Contract on behalf of the Company,
by placing his or her initials in the box under (a) below, affirms that the
Company has elected the same reimbursement percentage as all members of its NAIC
group. If the Company is an entity created pursuant to Section 627.351, Florida
Statutes, the Company must elect the 90% reimbursement percentage. The Company
shall not be permitted to change its reimbursement percentage during the
Contract Year. The Company shall be permitted to change its reimbursement
percentage at the beginning of a new Contract Year, but may not reduce its
reimbursement percentage if a Covered Event required the issuance of revenue
bonds, until the bonds have been fully repaid.

The Reimbursement Percentage elected by the Company for the prior Contract Year
effective June 1, 2005 was as follows: (Legal_Name) - (M_2005_Coverage_Option)

(a)  NAIC GROUP AFFIRMATION: Initial the following box if the Company is part of
     an NAIC Group:

                                      (TBM)

(b)  REIMBURSEMENT PERCENTAGE ELECTION: The Company hereby elects the following
     Reimbursement Percentage for the Contract Year from 12:01 a.m., Eastern
     Time, June 1, 2006, to 12:01 a.m., Eastern Time, June 1, 2007, (the
     individual executing this Contract on behalf of the Company shall place his
     or her initials in the box to the left of the percentage elected for the
     Company):

                     (Box) 45%   OR   (Box) 75%   OR   (TBM) 90%

REPORTING EXPOSURE FOR A SINGLE STRUCTURE, WITH A MIX OF COMMERCIAL HABITATIONAL
AND COMMERCIAL NON-HABITATIONAL EXPOSURE, WRITTEN ON A COMMERCIAL POLICY

This section is applicable to all Companies which either have exposure for
single structures with a mix of commercial habitational and commercial
non-habitational exposure written under a Commercial Policy, or have the
authority to write such policies. If the Company does not have the authority to
write this type of exposure, this section DOES NOT apply; initial the N/A box on
the next page, which completes this ARTICLE. If the Company DOES write, or has
the authority to write, this type of exposure, please read and complete the
remainder of this ARTICLE.

COMMERCIAL-RESIDENTIAL CLASS CODE

If a single structure is used for both habitational and non-habitational
purposes and the structure has a commercial-residential class code (based on a
classification plan on file with and reviewed by the Administrator), the entire
exposure for the structure should be reported to the FHCF under the Data Call,
and the FHCF will reimburse losses for the entire structure as well.

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COMMERCIAL NON-RESIDENTIAL/BUSINESS CLASS CODE

If a single structure is used for both habitational and non-habitational
purposes and the structure has a commercial non-residential or business class
code (based on a classification plan on file with and reviewed by the
Administrator), the habitational portion of that structure should be identified
and reported to the FHCF under the Data Call.

However, in recognition of the unusual nature of commercial structures with
incidental habitational exposure and the hardship some companies may face in
having to carve out such incidental habitational exposure, as well as the losses
to such structures, the FHCF will accommodate these companies by allowing them
to exclude the entire exposure for the single structure from their Data Call
submission, providing the following two conditions are met:

(1)  The decision to not carve out and report the incidental habitational
     exposure shall apply to all such structures insured by the Company; and

(2)  If the incidental habitational exposure is not reported to the FHCF, the
     Company agrees it shall not report losses to the structure and the FHCF
     shall not reimburse any losses to the structure.

Initial the CARVING box below if the Company is able to carve out and report its
incidental habitational exposure, OR, if this requirement presents a hardship,
the Company must communicate its decision to not carve out and to not report the
incidental exposure by having the individual executing this Contract on behalf
of the Company placing his or her initials in the NOT CARVING box below. If the
Company does not currently write such policies, but has the authority to write
such policies after the start date of this Contract, the decision to carve or
not carve out the incidental habitational exposure must be indicated below.

                          (Box)  OR    (TBM)    OR (Box)
                         CARVING    NOT CARVING     NA

By initialing the CARVING OR NOT CARVING box above, the Company is making an
irrevocable decision for the corresponding Contract Year Data Call submission
and any subsequent resubmissions.

IMPORTANT NOTE: SINCE THIS ELECTION WILL IMPACT YOUR DATA CALL SUBMISSION,
     PLEASE SHARE THIS DECISION WITH THE INDIVIDUAL(S) RESPONSIBLE FOR COMPILING
     YOUR DATA CALL SUBMISSION.

                                       21

<PAGE>

ARTICLE XIX - SIGNATURES

APPROVED BY:

Florida Hurricane Catastrophe Fund

By: State Board of Administration of
    the State of Florida

By: /s/ Linda Lettera, General Counsel for          08/07/2006
    ---------------------------------------------   Date
    Coleman Stipanovich
    Executive Director

Approved as to legality:

By: /s/ Thomas A. Bink, General Counsel for         08/03/2006
    ---------------------------------------------   Date
    Linda Lettera
    General Counsel
    FL Bar ID#311911

Liberty American Insurance Company
Company

By: /s/ T. Bruce Meyer, Corporate President & CEO   05/22/2006
    ---------------------------------------------   Date
    Name/Title

                                       22

<PAGE>

                                 ADDENDUM NO. 1
                                       TO
                             REIMBURSEMENT CONTRACT
                             EFFECTIVE: JUNE 1, 2006
                                   (CONTRACT)

                                     between

                       LIBERTY AMERICAN INSURANCE COMPANY
                                PINELLAS PARK, FL
                                    (Company)

                                  NAIC # 10955

                                       and

         THE STATE BOARD OF ADMINISTRATION OF THE STATE OF FLORIDA (SBA)
         WHICH ADMINISTERS THE FLORIDA HURRICANE CATASTROPHE FUND (FHCF)

IT IS HEREBY AGREED, effective at 12:01 a.m., Eastern Time, June 1, 2006, that
this Contract shall be amended as follows:

ARTICLE V - DEFINITIONS

(16) FORMULA OR THE PREMIUM FORMULA

     This term means the Formula approved by the SBA for the purpose of
     determining the Actuarially Indicated Premium to be paid to the FHCF. The
     Premium Formula is defined as an approach or methodology which leads to the
     creation of premium rates. The formula shall, pursuant to Section
     215.555(5)(b), Florida Statutes, include a factor of 25 percent of the
     fund's actuarially indicated premium in order to provide for more rapid
     cash buildup in the FHCF. The resulting rates are therefore incorporated as
     part of the Premium Formula.

Article VI(4) shall be amended as follows:

ARTICLE VI - EXCLUSIONS

(4)  Any liability of the Company attributable to losses for fair rental value,
     loss of rent or rental income, or business interruption.

                                                         FHCF-2006K-1, rev. 6/06
                                                                19-8.010, F.A.C.

                                        1

<PAGE>

Article (X)(3)(c)2. is amended as follows:

ARTICLE X - REPORTS AND REMITTANCES

     2.   In determining reimbursements under this Contract, the SBA shall:

          a.   Reimburse each of the Companies for the amount (if any) of
               reimbursement due under the individual Company's Contract, but
               not to exceed for all Loss Occurrences, an amount equal to the
               Projected Payout Multiple or the Payout Multiple, as applicable,
               times the individual Company's Reimbursement Premium for the
               Contract Year.

          b.   Thereafter, pursuant to Section 215.555(4)(d)2.b., Florida
               Statutes, establish the prorated reimbursement level at the
               highest level for which any remaining fund balance or bond
               proceeds (as limited by Section 215.555(4)(c), Florida Statutes)
               are sufficient to reimburse entities created pursuant to Section
               627.351(6), Florida Statutes, for reimbursable losses exceeding
               the amounts payable pursuant to (a) above for the Contract Year.
               The proration shall be determined based on each entity's share of
               their aggregate reimbursable losses exceeding the amounts payable
               pursuant to (a) above. Any additional reimbursements pursuant to
               this paragraph shall not include losses under an entity's FHCF
               Retention and will be at the 90% Reimbursement Percentage. In
               order to determine the amount available for additional
               reimbursements, the SBA will review reported loss information
               from all Companies and determine that all Companies which
               received payments for reimbursable losses but which did not
               exceed their projected payout have settled all, or substantially
               all, of their claims eligible for reimbursement. The SBA will
               then determine the remaining amount of Claims-Paying Capacity
               available for such additional reimbursements.

APPROVED BY:

Florida Hurricane Catastrophe Fund
By: State Board of Administration

By: /s/ Linda Lettera, General Counsel for   08/07/2006
    --------------------------------------   Date
     Coleman Stipanovich
     Executive Director

Approved as to legality:

/s/ Thomas A. Bink, General Counsel for      08/03/2006
------------------------------------------   Date
Linda Lettera
General Counsel
FL Bar ID#311911

Liberty American Insurance Company
COMPANY

By: /s/ T. Bruce Meyer, Corporate President & CEO   05/27/2006
    ---------------------------------------------   Date
    Name/Title

                                                         FHCF-2006K-1, rev. 6/06
                                                                19-8.010, F.A.C.

                                        2

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