Document:

exhibit107

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL  1-22-21  MAISON INSURANCE COMPANY  Baton Rouge, Louisiana    PROPERTY AGGREGATE EXCESS OF LOSS   REINSURANCE CONTRACT                                                      _______________________    Certain identified information has been omitted from this exhibit because it is not material and  would be competitively harmful if publicly disclosed.  Redactions are indicated by [***]. 

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL  1-22-21  TABLE OF CONTENTS  ARTICLE  PAGE    I BUSINESS COVERED 1 II TERM 1 III SPECIAL TERMINATION AND OTHER REMEDIES 2 IV DEFINITIONS 6   Declaratory Judgment Expense 6   Extra Contractual Obligations/Loss in Excess of Policy Limits  6   Loss Adjustment Expense 7   Loss Occurrence 7   Named Storm 9   Net Earned Premium 9   Policy 9   Ultimate Net Loss 9 V TERRITORY 10 VI EXCLUSIONS 10 VII SPECIAL ACCEPTANCES 12 VIII LIMIT AND RETENTION 12 IX REINSURANCE PREMIUM 12 X OTHER REINSURANCE 13 XI NET RETAINED LINES 13 XII NOTICE OF LOSS AND LOSS SETTLEMENTS 13 XIII LATE PAYMENTS 14 XIV SALVAGE AND SUBROGATION 15 XV INDEMNIFICATION AND ERRORS AND OMISSIONS 15 XVI LIABILITY OF THE REINSURER 16 XVII ENTIRE AGREEMENT 16 XVIII OFFSET 16 XIX CURRENCY 17 XX TAXES 17 XXI FEDERAL EXCISE TAX 17 XXII RESERVES AND FUNDING 17 XXIII THIRD PARTY RIGHTS 20 XXIV SEVERABILITY 20 XXV GOVERNING LAW 20 

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL  1-22-21  XVI ACCESS TO RECORDS 20 XXVII CONFIDENTIALITY 22 XXVIII INSOLVENCY 23 XXIX ARBITRATION 24 XXX SERVICE OF SUIT 25 XXXI MODE OF EXECUTION 26 XXXII SANCTIONS 27 XXXIII NON-WAIVER 27 XXXIV INTERMEDIARY 27  Nuclear Incident Exclusion Clause - Physical Damage-Reinsurance -  U.S.A.   Pools, Associations & Syndicates Exclusion Clause   Terrorism Exclusion (Property Treaty Reinsurance) N.M.A. 2930c   Mold Exclusion   Cyber Loss Limited Exclusion Clause (Property Treaty Reinsurance) No.  1   Limited Communicable Disease Exclusion No. 2 (Property Treaty  Reinsurance)    

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 1 1-22-21  PROPERTY AGGREGATE EXCESS OF LOSS   REINSURANCE CONTRACT  (the “Contract”)  between  MAISON INSURANCE COMPANY  Baton Rouge, Louisiana  (the “Company”)  including any and/or all of the subsidiary or affiliate companies that are now or may  hereafter come under the ownership, management and/or control of the Company    and  THE SUBSCRIBING REINSURER(S) EXECUTING THE  INTERESTS AND LIABILITIES AGREEMENT(S)  ATTACHED HERETO  (the “Reinsurer”)  ARTICLE I  BUSINESS COVERED  This Contract is to indemnify the Company in respect of the liability that may accrue to the  Company as a result of loss or losses under Policies classified by the Company as Property  business, in force at the inception of this Contract, or written or renewed during the term of this  Contract, subject to the terms and conditions hereafter set forth.  ARTICLE II  TERM  A. This Contract shall apply to all losses occurring during the period from January 1, 2021,  12:01 a.m. Central Daylight Saving Time, to January 1, 2022, 12:01 a.m. Central Daylight  Saving Time, or until such time as this Contract is terminated in accordance with the  provisions of the SPECIAL TERMINATION AND OTHER REMEDIES ARTICLE.    B. If this Contract is terminated or expires while a covered loss 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 had occurred prior to the termination or  expiration of this Contract, provided that no part of such loss is claimed against any  renewal or replacement of this Contract.  C. Notwithstanding the expiration or termination of the Reinsurer’s participation hereon, the  provisions of this Contract shall continue to apply to all obligations and liabilities of the  

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 2 1-22-21  parties incurred hereunder until all such obligations and liabilities are fully performed and  discharged.  ARTICLE III  SPECIAL TERMINATION AND OTHER REMEDIES  A. The Company may terminate the share of the Reinsurer at any time, either during the term  or after the expiration of this Contract, by giving written notice to the Reinsurer in the  event the Reinsurer experiences one or more Special Termination Event(s).  The effective  date of termination shall be the date selected by the Company, which may be a date that is  retroactively applied up to a maximum of 90 days prior to the earliest of either the date of  public announcement or the date of discovery, as applicable, of the Reinsurer experiencing  one or more Special Termination Event(s), subject to the condition that such selected date  must be the last day of a calendar month.  A “Special Termination Event” shall be deemed  to have occurred in the event of any of the following circumstances:  1. A State Insurance Department or other legal authority orders the Reinsurer to cease  writing business;  2. The Reinsurer has voluntarily ceased assuming new and renewal reinsurance business  for the lines of business covered hereunder;  3. The Reinsurer has become insolvent or has been placed into liquidation or  receivership (whether voluntary or involuntary), or there have been instituted against  it proceedings for the appointment of a receiver, liquidator, rehabilitator, conservator,  or trustee in bankruptcy, or other agent known by whatever name, to take possession  of its assets or control of its operations;  4. For any period not exceeding 12 months, which commences no earlier than  12 months prior to the inception of this Contract, the Reinsurer’s policyholders’  surplus (or total stamp capacity by managing agent as respects Lloyd’s of London  syndicates), as reported in the financial statements of the Reinsurer, has been reduced  by 20% or more;  5. The Reinsurer has announced its intention to be, or has become merged with,  acquired or controlled by any company, corporation, or individual(s) not controlling  the Reinsurer’s operations previously;   6. The Reinsurer’s A.M. Best Financial Strength Rating has been suspended or  withdrawn or has been assigned or downgraded below “A-”;  7. The Reinsurer’s S&P Global Insurance Financial Strength Rating has been suspended  or withdrawn or has been assigned or downgraded below “A-” or, as respects Lloyd’s  of London, the S&P Global Rating of the Lloyd’s Market has been suspended or  withdrawn or has been assigned or downgraded below  “A-”;  8. The Reinsurer has reinsured its entire liability under this Contract without the  Company’s prior written consent;   

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 3 1-22-21  9. The Reinsurer has transferred its claims-paying authority under this Contract to an  unaffiliated entity or in any other way has assigned its interests or delegated its  obligations under this Contract to an unaffiliated entity without the Company’s prior  written consent. Notwithstanding the foregoing, the transfer of claims-paying  authority or administration to a third party, where the Reinsurer maintains control  over claims settlement decisions, shall not constitute a transfer of its claims-paying  authority for purposes of this subparagraph and agreement by a Lloyd’s syndicate to  follow claim settlements procedures under Lloyd’s 2006 Claims Settlement Scheme  or agreement by an International Underwriting Association of London company to  follow IUA Claims Agreement practices shall not constitute a transfer of its claims- paying authority, for purposes of this subparagraph;  10. The Reinsurer has failed to comply with the funding requirements set forth in the  RESERVES AND FUNDING ARTICLE; or  11. The Reinsurer, directly or through the actions of a parent company or an affiliated  entity, has invoked any statute, legislation, or jurisprudence that purports to enable  the Reinsurer to:  a. Require the Company to settle its claims liabilities, including but not limited to  any estimated or undetermined claims liabilities under this Contract, on an  accelerated basis.  This does not include any attempt to enforce a settlement of  claims liabilities under a commutation process to which the parties have agreed;  or  b. Novate its liabilities under this Contract to a third party without the Company’s  prior written consent.   Unless it is prohibited by law from doing so, immediately upon the Reinsurer’s knowledge  of a Special Termination Event, the Reinsurer must notify the Company of such event in  writing, by electronic mail, certified mail, or a nationally or internationally recognized  delivery service.  B. Where a Special Termination Event has taken place and after giving the Reinsurer prior  written notice by electronic mail, certified mail, or by a nationally or internationally  recognized delivery service, the Company may invoke any one or a combination of the  following:  1. The Company may terminate or reduce the Reinsurer’s share hereunder effective at  any time following the Reinsurer’s receipt of the written notice.  In such event, the  entire liability of the Reinsurer for losses subsequent to the date of termination shall  cease concurrently with the date of termination.  Upon such termination, the  Reinsurer shall refund to the Company the unearned portion of the reinsurance  premium paid to it hereon (calculated on a pro rata expiration basis) and any  minimum premium hereon shall be waived.  2. The Company may require the Reinsurer to fund its share of outstanding loss and  Loss Adjustment Expense reserves, reserves for losses and Loss Adjustment Expense  incurred but not reported to the Company (IBNR as determined by the Company),  

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 4 1-22-21  and any other balances or financial obligations.  Within 30 days of the Company’s  written request to fund, the Reinsurer shall render the requested funding (less any  such amounts already funded pursuant to the provisions of the RESERVES AND  FUNDING ARTICLE) to the Company by means of one of the methods of funding  described in the RESERVES AND FUNDING ARTICLE.  The Company and the  Reinsurer may mutually agree on alternative methods of funding or the use of a  combination of methods.  The Company may draw upon such funding in accordance  with the provisions of the RESERVES AND FUNDING ARTICLE.  Within 60 days  following each subsequent calendar quarter, the Company may prepare and forward  to the Reinsurer a statement of the Reinsurer’s current funding obligation under this  subparagraph.  Where such amount exceeds the balance of funding already rendered  by the Reinsurer, the Reinsurer shall, within 30 days of its receipt of such statement,  increase the amount of funding available to the current, reported level.  If, however,  the statement shows that the Reinsurer’s current funding obligation is less than the  balance of funding as of the statement date, the Company shall, within 30 days after  receipt of written request from the Reinsurer, release such excess funding by making  the appropriate adjustment.  This funding option is available to the Company at any  time there remain any outstanding liabilities of the Reinsurer.  3. The Company may require that the Reinsurer commute all present and future  liabilities under this Contract in return for a full and final release of all such liabilities.   If the Company and Reinsurer cannot agree on the capitalized value of the  Reinsurer’s liabilities, they shall appoint an independent actuary.  If the Company and  Reinsurer cannot agree on an actuary, the Company and the Reinsurer shall each  nominate three individuals, of whom the other shall decline two, and the final  decision shall be made by drawing lots.  All the actuaries selected shall be  disinterested in the outcome of the commutation and shall be Fellows of the Casualty  Actuarial Society.  The decision in writing of the appointed actuary, when filed with  the parties hereto, shall be final and binding on both parties.  The expense of the  actuary and of the actuarial calculation shall be equally divided between the two  parties.  Said actuarial calculation shall take place in a location chosen by the  Company.  This commutation option is available to the Company at any time there  remain any outstanding liabilities of the Reinsurer.  Until the final resolution of any  such commutation, settlements of amounts due hereunder shall continue in  accordance with the terms of this Contract.  C. The Company may revoke its notice hereunder, prior to the date of termination, without  prejudice to reinstitute later if it so chooses.  D. The Company, at its sole option, may classify the Reinsurer as a “Run-off Reinsurer,”  where said Reinsurer experiences one or more of the Special Termination Events set forth  in subparagraphs 1, 2, 3, 8, and 9 under paragraph A above.   Notwithstanding any other provision of this Contract, in the event that a Reinsurer becomes  classified by the Company as a Run-off Reinsurer at any time, the Company may elect, by  giving written notice to the Run-off Reinsurer at any time thereafter, that all or any of the  following shall apply to the Run-off Reinsurer’s share hereunder:  

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 5 1-22-21  1. If payment of any claim has been received from the Reinsurers constituting at least  70% of the interests and liabilities of all the Reinsurers that participated on this  Contract and are active as of the due date, it being understood that said date shall not  be later than 90 days from the date of transmittal by the intermediary of the initial  billing for each such payment, the Run-off Reinsurer shall be estopped from denying  such claim and must pay within 10 days following transmittal to the Run-off  Reinsurer of written notification of such payments.  For purposes of this  subparagraph, a Reinsurer shall be deemed to be active if it is not a Run-off  Reinsurer.  2. The interest penalty specified in the LATE PAYMENTS ARTICLE shall be  increased by 0.5% for each 30 days that the payment is past due, subject to a  maximum increase of 7.0%.  3. In the event that either party demands arbitration of a dispute between the Company  and the Run-off Reinsurer, and the amount in dispute is less than $250,000, unless the  arbitration notice includes a demand for rescission of this Contract, notwithstanding  the terms of the ARBITRATION ARTICLE, the dispute shall be resolved by a sole  arbitrator and the following procedures shall apply:  a. The sole arbitrator shall be chosen by mutual agreement of the parties within 15  business days after the demand for arbitration.  If the parties have not chosen an  arbitrator within the 15 business days after receipt of the arbitration notice, the  arbitrator shall be chosen in accordance with the Neutral Selection Procedure  modified for a single arbitrator, established by the AIDA Reinsurance and  Insurance Arbitration Society – U.S. (ARIAS) and in force on the date the  arbitration is demanded.  The nominated arbitrator must be available to read any  written submissions and hear testimony within 60 days of being chosen.  b. Within 10 business days after the arbitrator has been appointed, the parties shall  be notified of deadlines for the submission of briefs and documentary evidence,  as determined by the arbitrator.  There shall be no discovery or hearing unless  the parties agree to engage in limited discovery and/or a hearing.  Also, the  arbitrator can determine, without the consent of the parties, that a limited  hearing is necessary.  c. The arbitrator shall render a decision within 10 business days after the later of  the date on which briefs are submitted or the end of the limited hearing.  The  decision of the arbitrator shall be in writing and shall be final and binding on  both parties.  d. “Business days” mean days that are not a Saturday, Sunday or a U.S. federal  holiday.  E. The Company’s waiver of any rights provided in this Article is not a waiver of that right or  other rights at a later date.  

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 6 1-22-21  ARTICLE IV  DEFINITIONS  The terms set forth below, wherever they appear in this Contract and regardless of whether they  appear in a singular or plural form, shall have the meanings given herein:  A. Declaratory Judgment Expense   “Declaratory Judgment Expense” shall mean all expenses incurred by the Company in  connection with a declaratory judgment action brought to determine the Company’s  defense and/or indemnification obligations that are allocable to a specific claim subject to  this Contract.  Declaratory Judgment Expense shall be deemed to have been incurred on the  date of the original loss giving rise to the declaratory judgment action.  B. Extra Contractual Obligations/Loss in Excess of Policy Limits   1. Extra Contractual Obligations   “Extra Contractual Obligations” shall mean those liabilities not covered under any  other provision of this Contract, including any punitive, exemplary, compensatory, or  consequential damages, which arise from the handling of any claim on business  covered hereunder; such liabilities arising because of, but not limited to, the  following:  failure to settle within the Policy limit, or by reason of alleged or actual  negligence, fraud or bad faith in rejecting an offer of settlement, in preparation of the  defense, in the trial of any action against its insured, reinsured, its insured’s or  reinsured’s assignee or a third party claimant, or in the preparation or prosecution of  an appeal consequent upon such action.  2. Loss in Excess of Policy Limits   “Loss in Excess of Policy Limits” shall mean amounts paid or damages payable by  the Company in excess of the Policy limit as a result of alleged or actual negligence,  fraud, or bad faith in failing to settle, and/or rejecting a settlement within the Policy  limit, in the preparation of the defense, in the trial of any action against its insured,  reinsured, its insured’s or reinsured’s assignee or a third party claimant, or in the  preparation or prosecution of an appeal consequent upon such action.  Loss in Excess  of Policy Limits is any amount for which the Company would have been  contractually liable to pay had it not been for the limits of the reinsured Policy.  3. Coverage for Extra Contractual Obligations loss and/or Loss in Excess of Policy  Limits shall not apply when such loss has been incurred due to an adjudicated finding  of fraud committed by a member of the Board of Directors or a corporate officer of  the Company acting individually or collectively or in collusion with a member of the  Board of Directors or a corporate officer or a partner of any other corporation or  partnership.  

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 7 1-22-21  4. Any Extra Contractual Obligations and/or Loss in Excess of Policy Limits shall be  deemed to have occurred on the same date as the loss covered or alleged to be  covered under the Policy.  C. Loss Adjustment Expense   “Loss Adjustment Expense” shall mean all costs and expenses allocable to a specific claim  that are incurred by the Company in the investigation, appraisal, adjustment, settlement,  litigation, defense, disposition, or appeal of a specific claim, including court costs and costs  of supersedeas and appeal bonds, and including 1) pre-judgment interest, unless included as  part of the award or judgment; 2) post-judgment interest; 3) legal expenses and costs  incurred in connection with coverage questions and legal actions connected thereto,  including Declaratory Judgment Expense, except as provided in the “Ultimate Net Loss”  definition; 4) a pro rata share of salaries and expenses of Company field employees, and  expenses of other Company employees who have been temporarily diverted from their  normal and customary duties and assigned to the field adjustment of losses covered by this  Contract; and 5) subrogation, salvage and recovery expenses.  Loss Adjustment Expense  does not include salaries and expenses of employees, other than 4) above, and office and  other overhead expenses.  D. Loss Occurrence  1. "Loss Occurrence" shall mean the sum of all individual losses directly occasioned by  any one disaster, accident or loss or series of disasters, accidents or losses arising out  of one event which occurs within the area of one state of the United States and states  contiguous thereto and to one another. However, the duration and extent of any one  "Loss Occurrence" shall be limited to all individual losses sustained by the Company  occurring during any period of 168 consecutive hours arising out of and directly  occasioned by the same event, except that the term "Loss Occurrence" shall be further  defined as follows:  a. As regards storm or storm systems that are not a named storm, including, by  way of example and not limitation, ensuing wind, gusts, typhoon, tropical storm,  hail, rain, tornados, cyclones, ensuing flood, storm surge, fire following,  sprinkler leakage, riots, vandalism, collapse and water damage, all individual  losses sustained by the Company occurring during any period of 144  consecutive hours arising out of, caused by, occurring during, occasioned by or  resulting from the same event.  However, the event need not be limited to one  state or province or states or provinces contiguous thereto.  b. As regards riot, riot attending a strike, civil commotion, vandalism and  malicious mischief, all individual losses sustained by the Company occurring  during any period of 96 consecutive hours within the area of one municipality or  county and the municipalities or counties contiguous thereto arising out of and  directly occasioned by the same event.  The maximum duration of 96  consecutive hours may be extended in respect of individual losses which occur  beyond such 96 consecutive hours during the continued occupation of an  assured's premises by strikers, provided such occupation commenced during the  aforesaid period.  

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 8 1-22-21  c. As regards earthquake (the epicenter of which need not necessarily be within the  territorial confines referred to in the introductory portion of this paragraph) and  fire following directly occasioned by the earthquake, only those individual fire  losses which commence during the period of 168 consecutive hours may be  included in the Company's Loss Occurrence.  d. As regards freeze, only individual losses directly occasioned by collapse,  breakage of glass and water damage (caused by bursting frozen pipes and tanks)  may be included in the Company's Loss Occurrence.  e. As regards firestorms, brush fires and any other fires or series of fires,  irrespective of origin (except as provided in subparagraphs b. and c. above), all  individual losses sustained by the Company which commence during any period  of 168 consecutive hours within the area of one state of the United States and  states contiguous thereto and to one another may be included in the Company's  Loss Occurrence.  2. For all Loss Occurrences hereunder, the Company may choose the date and time  when any such period of consecutive hours commences, provided that no period  commences earlier than the date and time of the occurrence of the first recorded  individual loss sustained by the Company arising out of that disaster, accident, or loss  or series of disasters, accidents, or losses.  Furthermore:  a. For all Loss Occurrences other than those referred to in subparagraphs 1.a. and  1.b. above, only one such period of 168 consecutive hours shall apply with  respect to one event.  b. As regards those Loss Occurrences referred to in subparagraph 1.a. above, only  one such period of consecutive hours (as set forth therein) shall apply with  respect to one event, regardless of the duration of the event.  c. As regards those Loss Occurrences referred to in subparagraph 1.b. above, if the  disaster, accident, or loss or series of disasters, accidents, or losses occasioned  by the event is of greater duration than 96 consecutive hours, then the Company  may divide that disaster, accident, or loss or series of disasters, accidents, or  losses into two or more Loss Occurrences, provided that no two periods overlap  and no individual loss is included in more than one such period.  3. It is understood that losses arising from a combination of two or more perils as a  result of the same event may be considered as having arisen from one Loss  Occurrence.  Notwithstanding the foregoing, the hourly limitations as stated above  shall not be exceeded as respects the applicable perils, and no single Loss Occurrence  shall encompass a time period greater than 168 consecutive hours, except as regards  those Loss Occurrences referred to in subparagraphs 1.c. and 1.e. above.   For the sake of clarity, it is noted that Named Storms (as defined below) are excluded from  coverage under this Contract, as provided at subparagraph A. 12. of the EXCLUSIONS  ARTICLE.  

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 9 1-22-21  E. Named Storm   “Named Storm” shall mean any storm or storm system that has been declared by the  National Hurricane Center (“NHC”) or its successor or any other division of the National  Weather Service (“NWS”) to be a named storm at any time, which may include by way of  example and not limitation, hurricane, wind, gusts, typhoon, tropical storm, hail, rain,  tornados, cyclones, ensuing flood, storm surge, water damage, fire following, sprinkler  leakage, riots, vandalism, and collapse, and all losses and perils (including, by way of  example and not limitation, those mentioned previously in this sentence) in each case  arising out of , caused by, occurring during, occasioned by, or resulting from such storm or  storm system, including by way of example and not limitation the merging of one or more  separate storm(s) or storm system(s) into a combined storm surge event.   The duration of the Named Storm consists of the time period:  1. From and after 12:00 a.m. Eastern Standard Time on the date a watch, warning,  advisory, or other bulletin (whether for wind, flood, or otherwise) for such named  storm is first issued by the NHC or is successor or any other division of the NWS;  2. Continuing for a time period thereafter during which such named storm continues,  regardless of its category rating or lack thereof and regardless of whether the watch,  warning, or advisory or other bulletin remains in effect for such named storm;  3. Ending 96 hours following the issuance of the last watch, warning, or advisory or  other bulletin for such named storm or related to such named storm by the NHC or its  successor or any other division of the NWS.   F. Net Earned Premium   “Net Earned Premium” shall mean the gross earned premium of the Company for the  business reinsured hereunder, less the earned portion of premiums ceded by the Company  for reinsurance which inures to the benefit of this Contract.  G. Policy   “Policy” shall mean the Company’s binders, policies, and contracts, whether written or  oral, providing insurance or reinsurance on the business covered under this Contract.  H. Ultimate Net Loss  “Ultimate Net Loss” shall mean the amount of any settlement, award, or judgment paid by  the Company or for which the Company has become liable to pay, including:  1. Loss Adjustment Expense,  2. Any pre-judgment interest that is included as part of an award or judgment,  3. 95% of Loss in Excess of Policy Limits, not to exceed 25% of Ultimate Net Loss, and  4. 95% of Extra Contractual Obligations, not to exceed 25% of Ultimate Net Loss,  

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 10 1-22-21   after making deductions for all salvages, subrogations and recoveries (including amounts  due from all reinsurances that inure to the benefit of this Contract, whether recovered or  not); provided, however, that in the event of the insolvency of the Company, payment by  the Reinsurer shall be made in accordance with the provisions of the INSOLVENCY  ARTICLE.  In the event a verdict or judgment is reduced by an appeal or a settlement,  subsequent to the entry of the judgment, however, resulting in an ultimate saving on such  verdict or judgment, or a judgment is reversed outright, the loss expense incurred in  securing such final reduction or reversal shall be prorated between the Reinsurers and the  Company in the proportion that each benefits from such reduction or reversal.  Nothing  herein shall be construed to mean that losses under this Contract are not recoverable until  the Company’s Ultimate Net Loss has been ascertained.  ARTICLE V  TERRITORY  The territorial limits of this Contract shall be identical with those of the Company’s Policies.  ARTICLE VI  EXCLUSIONS  A. This Contract does not apply to and specifically excludes the following:  1. Reinsurance assumed by the Company, except for (a) business assumed as part of an  assumption agreement with the intent to write the business as a primary policy at  renewal and (b) reinsurance by the Company of any direct business of subsidiary or  affiliate companies that are now or may hereafter come under the ownership,  management and/or control of the Company.  2. All liability of the Company arising by contract, operation of law, or otherwise,  from its participation or membership, whether voluntary or involuntary, in any  insolvency fund. “Insolvency fund” includes any guaranty fund, insolvency fund,  plan, pool, association, fund or other arrangement, however denominated,  established or governed, which provides for any assessment of or payment or  assumption by the Company of part or all of any claim, debt, charge, fee or other  obligation of an insurer, or its successors or assigns, which has  been declared  by  any competent  authority to  be  insolvent,  or  which  is  otherwise deemed unable to  meet any claim, debt, charge, fee or other obligation in whole or in part.  3. Financial guarantee and insolvency business.  4. Loss excluded by the attached Nuclear Incident Exclusion Clause – Physical Damage  – Reinsurance - U.S.A. – NMA 1119.  5. Losses excluded by the attached Pools, Associations and Syndicates Exclusion  Clause.  6. All assessments from Citizens Property Insurance Corporation and the Florida  Hurricane Catastrophe Fund.  

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 11 1-22-21  7. Losses in respect of overhead  transmission and distribution lines and their  supporting structures other than those on or within 500 feet of the insured premises;  however, public utilities extension and/or suppliers extension and/or contingent  business interruption coverage are not subject to this exclusion, provided that these  are not part of a transmitters’ or distributors’ Policy.  8. Loss or damage caused by or resulting from war, invasion, hostilities, acts of foreign  enemies, civil war, rebellion, insurrection, military or usurped power, or martial law  or confiscation by order of any government or public authority, but this exclusion  shall not apply to loss or damage covered under a standard Policy with a standard  War Exclusion Clause.  9. Pollution as per the Company’s original Policy. However, this exclusion shall not  apply where the Company has sustained a loss as a result of its pollution exclusion  being deemed invalid or inapplicable by a court of law.  10. Losses excluded by the attached Terrorism Exclusion (Property Treaty Reinsurance)  N.M.A 2930C Clause.  11. Mold, as per the attached Mold Exclusion.  12. Any loss or losses, damage or damages directly or indirectly caused by, contributed  by, resulting from or arising out of or in connection with any Named Storm.  13. Losses excluded by the attached Cyber Loss Limited Exclusion Clause (Property  Treaty Reinsurance) No. 1 LMA5410.  14. Losses excluded by the attached Limited Communicable Disease Exclusion No. 2  (Property Treaty Reinsurance) LMA5503.  B. The exclusions enumerated in paragraph A above (except for subparagraphs 3, 4, 5, 8, 10,  13, and 14) shall not apply when they are merely incidental to the main operations or  exposures of the insured, provided such main operations or exposures are also covered by  the Company and are not themselves excluded from the scope of this Contract.  The  Company shall be the sole judge of what is “incidental.”  C. If the Company is inadvertently bound or is unknowingly exposed (due to error, automatic  provisions of policy coverage, or as imposed by law) on a risk otherwise excluded in  paragraph A above (except for subparagraphs 3, 4, 5, 8, 10, 13, and 14), such exclusion  shall be waived.  The duration of said waiver shall not extend beyond the time that notice  of such coverage has been received by a responsible underwriting authority of the  Company plus the minimum time thereafter for the Company to terminate such coverage or  Policy.  D. If the Company is required to accept an assigned risk, which conflicts with one or more of  the exclusions set forth in paragraph A above (except for subparagraphs 3, 4, 5, 8, 10, 13,  and 14), this reinsurance shall apply, but up to the limit required by the applicable statute or  regulatory authority.  

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 12 1-22-21  E. Should the decision of an arbitration panel convened pursuant to the provisions of a Policy  or any judicial or regulatory entity having jurisdiction invalidate any exclusion in or  expand coverage of the Company’s Policy that is also the subject of one or more of the  exclusions set forth in paragraph A above (except for subparagraphs 3, 4, 5, 8, 10, 13, and  14), then a loss for which the Company is liable because of such invalidation or expansion  of coverage shall not be excluded hereunder.  ARTICLE VII  SPECIAL ACCEPTANCES  A. Business that is not within the scope of this Contract may be submitted to the Reinsurer for  special acceptance hereunder and such business, if accepted by the Reinsurer, shall be  subject to all terms, conditions, and limitations of this Contract, except as modified by the  special acceptance.  Should denial of a request for special acceptance not be received from  the Reinsurer within three business days of the Reinsurer’s receipt of said request, the  special acceptance shall be deemed automatically agreed.    B. Any special acceptance business covered under the reinsurance contract being replaced by  this Contract shall be automatically covered hereunder.  Furthermore, should the Reinsurer  become a party to this Contract subsequent to the acceptance of any business not normally  covered hereunder, it shall automatically accept same as being part of this Contract.  ARTICLE VIII  LIMIT AND RETENTION  A. No claim shall be made hereunder unless the Company’s aggregate Ultimate Net Loss  exceeds $[***] as respects losses covered hereunder.  The Reinsurer shall then be liable for  the amount of Ultimate Net Loss in excess of the Company’s $[***] aggregate retention.   However, the Reinsurer's aggregate limit of liability for the term of this Contract shall not  exceed $[***] as respects all losses covered hereunder.  B. In making up the aggregate amounts of Ultimate Net Loss applying to paragraph A above,  the Company shall retain for its own account $[***] of Ultimate Net Loss from each Loss  Occurrence subject to this Contract.  Further, no more than $[***] of Ultimate Net Loss  from any one Loss Occurrence shall be used in making up the aggregate Ultimate Net Loss  subject to this Contract.  C. No claim arising from any one Loss Occurrence shall be made under this Contract unless at  least two risks insured by the Company are involved in that Loss Occurrence.  The  Company shall be the sole judge of what constitutes one “risk.”  ARTICLE IX  REINSURANCE PREMIUM  A. As premium for the reinsurance provided hereunder, the Company shall pay the Reinsurer  [***]% of its Net Earned Premium for the term of this Contract, subject to a minimum  premium of $[***].  In the event of termination of the Reinsurer’s share pursuant to the  

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 13 1-22-21  provisions of the SPECIAL TERMINATION AND OTHER REMEDIES ARTICLE, for  the purposes of this paragraph, the term of this Contract shall be deemed to be the period  from its effective date to the effective date of such termination.  B. The Company shall pay the Reinsurer a deposit premium of $[***] in four equal  installments of $[***] on January 1, 2021, April 1, 2021, July 1, 2021, and October 1,  2021.  C. Within 60 days after the expiration or termination of this Contract, the Company shall  provide a report to the Reinsurer setting forth the premium due hereunder, computed in  accordance with paragraph A.  Any premium due the Reinsurer, less amounts previously  paid as deposits or otherwise, shall accompany said report or any premium received by the  Reinsurer that is in excess of the Company’s premium obligations hereunder shall be  returned by the Reinsurer within 15 days of its receipt of said report.  ARTICLE X  OTHER REINSURANCE  The Company shall be permitted to carry underlying reinsurance, recoveries under which shall  insure solely to the benefit of the Company and be entirely disregarded in applying all of the  provisions of this Contract.  The Company shall be permitted to maintain in force other  reinsurance, recoveries under which shall inure to the benefit of this Contract.  The premium for  any such reinsurance that inures to the benefit of this Contract shall not be included within the  subject premium hereunder.  ARTICLE XI  NET RETAINED LINES  A. This Contract applies only to that portion of any Policy that the Company retains net for its  own account (prior to deduction of any underlying reinsurance) and, in calculating the  amount of any loss hereunder and also in computing the amount or amounts in excess of  which this Contract attaches, only loss or losses in respect of that portion of any Policy that  the Company retains net for its own account shall be included.  B. The amount of the Reinsurer’s liability hereunder in respect of any loss or losses shall not  be increased by reason of the inability of the Company to collect from any other reinsurers,  whether specific or general, any amounts that may have become due from such reinsurers,  whether such inability arises from the insolvency of such other reinsurers or otherwise.  ARTICLE XII  NOTICE OF LOSS AND LOSS SETTLEMENTS  A. The Company shall advise the Reinsurer of all claims or losses that, in the opinion of the  Company, may result in a claim hereunder.  Furthermore, the Company shall notify the  Reinsurer of all subsequent developments to any claims and losses that, in the opinion of  the Company, may materially affect the position of the Reinsurer.  Inadvertent omission  in dispatching any notices shall in no way affect the obligations of the Reinsurer under  

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 14 1-22-21  this Contract, provided the Company informs the Reinsurer of such omission promptly  upon discovery.  B. All loss settlements made by the Company that are within the terms and conditions of this  Contract shall be binding upon the Reinsurer, and the Reinsurer agrees to pay or allow, as  the case may be, its share of each such settlement immediately upon receipt of proof of  loss.  ARTICLE XIII  LATE PAYMENTS  (The provisions of this Article shall not be implemented unless specifically invoked in writing,  by one of the parties to this Contract.)  A. In the event that any amount due either party is not received by the intermediary named in  the INTERMEDIARY ARTICLE (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 a rate equal to the U.S. Prime Rate as published in The Wall Street  Journal on the first business day following the date a remittance becomes due plus  300 basis points; times  3. The amount past due, including accrued interest.  It is agreed that interest shall accumulate until payment of the original amount due plus  interest penalties has been received by the Intermediary.  B. The establishment of the payment due date shall, for purposes of this Article, be as follows:  1. Payments from the Reinsurer to the Company shall be due on the date on which the  demand for payment (including delivery of bordereaux or quarterly or monthly  reports) is received by the Reinsurer, and shall be overdue 30 days thereafter.  2. Payments from the Company to the Reinsurer shall be due on the dates specified  within this Contract.  Payments shall be overdue 30 days thereafter except for the first  installment of premium, if applicable, which shall be overdue 60 days from inception  or 30 days from final line-signing, whichever the later.  Reinstatement premium, if  applicable, shall have as a due date the date when the Company receives payment for  the claim giving rise to such reinstatement premium, and payment shall be overdue 30  days thereafter.  In the event a due date is not specifically stated for a given payment,  the overdue date shall be 30 days following the date of billing.  

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 15 1-22-21   For purposes of interest calculations only, amounts due hereunder shall be deemed paid  upon receipt by the Intermediary.  C. The validity of any claim or payment may be contested under the provisions of this  Contract.  If the debtor party prevails in an arbitration, or any other proceeding, there shall  be no interest penalty due.  Otherwise, any interest shall be calculated and due as outlined  above.  Furthermore, if a debtor party advances payment of any amount hereunder that it is  contesting and prevails in such action, the other party shall reimburse the debtor party for  any such payment plus pay interest on same, at a rate calculated as per the provisions of  paragraph A, above; however, such calculation is to begin from the actual date of  remittance of funds from the debtor party through the date the funds are returned.  D. If the interest rate provided under this Article exceeds the maximum interest rate allowed  by applicable law, such interest rate shall be modified to the highest rate permitted by the  applicable law.  E. In the event arbitration is necessary to settle a dispute, the panel shall have the authority to  make a determination awarding interest to the prevailing party.  Interest, if any, awarded by  the panel shall supersede the interest amounts outlined herein.  F. Any interest owed pursuant to this Article may be waived by the party to which it is owed.   Waiver of such interest, however, shall not affect the waiving party’s rights to other interest  amounts due as a result of this Article.  ARTICLE XIV  SALVAGE AND SUBROGATION  A. The Company, at its sole discretion, may enforce its right to salvage and/or subrogation and  may prosecute all claims arising out of such right.    B. Any salvage, subrogation and/or other amounts recovered shall be used to reimburse the  Company’s excess reinsurers, including the Reinsurer hereon (and the Company, should it  carry a portion of excess coverage net) in the reverse order of their participation in the loss  before being used in any way to reimburse the Company for its primary loss.   C. All salvage, subrogation and/or other amounts recovered, after deduction of expense  applicable thereto, which are 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.  ARTICLE XV  INDEMNIFICATION AND ERRORS AND OMISSIONS  A. The Reinsurer is reinsuring, subject to the terms and conditions of this Contract, the  obligations of the Company under any Policy.  The Company shall be the sole judge as to:  1. what shall constitute a claim or loss covered under any Policy;  

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 16 1-22-21  2. the Company’s liability thereunder;  3. the amount or amounts that it shall be proper for the Company to pay thereunder.  B. The Reinsurer shall be bound by the judgment of the Company as to the obligation(s)  and liability(ies) of the Company under any Policy.  C. Any inadvertent error, omission or delay in complying with the terms and conditions of  this Contract shall not be held to relieve either party hereto from any liability that would  attach to it hereunder if such error, omission or delay had not been made, provided  such error, omission or delay is rectified immediately upon discovery.  ARTICLE XVI  LIABILITY OF THE REINSURER  All reinsurances for which the Reinsurer shall be liable by virtue of this Contract shall be subject  in all respects to the same terms, conditions, interpretations, and waivers and to the same  modifications, alterations, and cancellations, as the respective Policies to which such  reinsurances relate, the true intent of the parties to this Contract being that the Reinsurer shall  follow the fortunes of the Company.  ARTICLE XVII  ENTIRE AGREEMENT  This Contract shall constitute the entire agreement between the parties with respect to the  business being reinsured hereunder and no understandings exist between the parties other than  those expressed in this Contract.  Any change or modification to this Contract shall be null and  void unless made by amendment to this Contract and signed by both parties.  This Article shall  not be construed as limiting in any way the admissibility, in the context of an arbitration or any  other legal proceeding, of evidence regarding the formation, interpretation, purpose, or intent of  this Contract.  ARTICLE XVIII  OFFSET  A. The Company and the Reinsurer shall have the right to offset any balance or amounts due  from one party to the other under the terms of this Contract.  The party asserting the right  of offset may exercise such right any time whether the balances due are on account of  premiums or losses or otherwise; however, in the event of the insolvency of any party  hereto, offset shall be in accordance with applicable law.  B. Notwithstanding the provisions of paragraph A above, a Reinsurer who experiences any of  the events described in paragraph A of the SPECIAL TERMINATION AND OTHER  REMEDIES ARTICLE shall not offset balances as outlined above without the prior  consent of the Company.  

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 17 1-22-21  ARTICLE XIX  CURRENCY  A. Whenever the word “Dollars” or the “$” sign appears in this Contract, they shall be  construed to mean United States Dollars and all transactions under this Contract shall be in  United States Dollars.  B. Amounts paid or received by the Company in any other currency shall be converted to  United States Dollars at the rate of exchange at the date such transaction is entered on the  books of the Company.  ARTICLE XX  TAXES  The Company shall pay applicable taxes (except Federal Excise Tax, if any) on premiums  reported to the Reinsurer under this Contract.  ARTICLE XXI  FEDERAL EXCISE TAX  A. The Reinsurer has agreed to allow the applicable percentage of the premium payable  hereon (as imposed under the Internal Revenue Code) for the purpose of paying Federal  Excise Tax to the extent such premium is subject to such tax.  Should the Reinsurer claim  exempt status from Federal Excise Tax, it shall provide to the Company, upon its request,  proof that the exempt status adequately satisfies the rules as imposed under the Internal  Revenue Code and any other applicable U.S. government authority.  B. In the event of any return premium becoming due hereunder, the Reinsurer shall deduct the  applicable percentage from the return premium payable hereon and the Company or its  agent shall recover such tax from the United States Government.  C. As respects premiums ceded to the Reinsurer under this Contract, the Reinsurer agrees to  indemnify the Company for any liability, expense, interest, or penalty it may incur by  reason of the Reinsurer’s breach of this Article.  ARTICLE XXII  RESERVES AND FUNDING  A. The Reinsurer shall provide funding under the terms of this Article only if the Company  will be denied statutory credit for reinsurance ceded to that Reinsurer pursuant to the credit  for reinsurance law or regulations of the regulatory authority having jurisdiction over the  Company’s reserves.  B. As regards Policies issued by the Company coming within the scope of this Contract, the  Company agrees that, when it files with the insurance regulatory authority or sets up on its  books reserves for liabilities which it is required by law to set up, it shall forward to the  

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 18 1-22-21  Reinsurer a report showing the proportion of such reserves which is applicable to the  Reinsurer.  The Reinsurer shall fund 100% of its portion of such reserves in respect of:  1. Loss and loss expense paid by the Company but not recovered from the Reinsurer;  2. Known outstanding losses that have been reported to the Reinsurer and loss expense  relating thereto;  3. Reserves for loss and loss expense incurred but not reported;  4. Unearned premium (if applicable);  5. Other amounts recoverable reported in Schedule F of the Company’s NAIC  Statement;  as shown in the report prepared by the Company (hereinafter referred to as “Reinsurer’s  Obligations”).  The Reinsurer’s Obligations shall be funded by funds withheld, cash  advances, escrow accounts for the benefit of the Company, Letters of Credit (“LOC”),  Trust Account, or a combination thereof.  The Reinsurer shall have the option of  determining the method of funding, subject always to the provision that (a) the method of  funding and (b) the terms and provisions of any such LOC or Trust Account and (c) the  quality of assets in any Trust Account are all acceptable to the Company and also meet the  requirements of each applicable insurance regulatory authority having jurisdiction over the  Company’s reserves.  In the event a provision of any such funding instrument jeopardizes  the Company’s ability to obtain full credit for reinsurance, such provision shall be void and  shall be amended to comply with applicable credit for reinsurance requirements.  The  Reinsurer shall provide funding and/or any adjustments thereto in time for the Company to  meet the requirements of each applicable insurance regulatory authority having jurisdiction  over the Company’s reserves, provided that the Company sends the report of Reinsurer’s  Obligations at least 15 days prior to the date such funding is required.  C. When funding in whole or in part by an LOC, the Reinsurer agrees to apply for and secure  timely delivery to the Company of a clean, irrevocable and unconditional LOC dated on or  before December 31 of the year in which the request is made (on or before the last day of  the calendar quarter for any quarterly adjustment), issued by a member of the Federal  Reserve System or any bank approved for use by the NAIC Securities Valuation Office,  and containing provisions acceptable to the insurance regulatory authorities having  jurisdiction over the Company’s reserves.  Such LOC shall be issued for a period of not  less than one year and shall include an “evergreen clause,” which automatically extends the  term for at least one additional year at each expiration date unless 60 days (or such other  time period as may be required by the applicable insurance regulatory authorities) prior to  any expiration date the issuing bank notifies the Company by certified or registered mail  that the issuing bank elects not to consider the LOC extended for any additional period.  If  the issuing bank of the LOC is put under negative credit watch by a major rating agency or  is removed from the list of banks approved by the NAIC Securities Valuation Office, the  Company may require that a replacement LOC be issued by a bank acceptable to the  Company, by providing the Reinsurer with written notice requesting such replacement  LOC.  If the Reinsurer fails to provide acceptable replacement security within 10 business  

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 19 1-22-21  days following receipt of the Company’s notice, the Company may draw upon the existing  LOC in amounts equal to the Reinsurer’s Obligations.  D. The Reinsurer and Company agree that any funding provided by the Reinsurer pursuant to  the provisions of this Contract may be drawn upon at any time, notwithstanding any other  provision of this Contract, and be utilized by the Company or any successor, by operation  of law, of the Company including, without limitation, any liquidator, rehabilitator, receiver,  or conservator of the Company for the following purposes:  1. To reimburse the Company for the Reinsurer’s share of unearned premium on  Policies reinsured hereunder on account of cancellations of such Policies;  2. To reimburse the Company for the Reinsurer’s Obligations, the payment of which is  due under the terms of this Contract and which has not been otherwise paid;  3. To make refund of any sum which is in excess of the actual amount required to pay  the Reinsurer’s Obligations under this Contract (or in excess of 102% of Reinsurer’s  Obligations, if funding is provided by a Trust Account);  4. To fund an account with the Company for the Reinsurer’s Obligations if such LOC is  under notice of non-renewal or not replaced by the Reinsurer within 10 days prior to  its expiration.  Such cash deposit shall be held in an interest bearing account separate  from the Company’s other assets, and interest thereon not in excess of the prime rate  shall accrue to the benefit of the Reinsurer;  5. To pay the Reinsurer’s share of any other amounts the Company claims are due under  this Contract.   In the event the amount drawn by the Company on any funding provided by the Reinsurer  is in excess of the actual amount required for subparagraph 1, 2, or 4 or, in the case of  subparagraph 5, the actual amount determined to be due, the Company shall promptly  return to the Reinsurer the excess amount so drawn.  All of the foregoing shall be applied  without diminution because of insolvency on the part of the Company or the Reinsurer.  E. Deferral of funding that may be permitted for a certified reinsurer in the event of a  catastrophe shall not apply to any Reinsurer under this Contract.  F. The issuing bank shall have no responsibility whatsoever in connection with the propriety  of withdrawals made by the Company or the disposition of funds withdrawn, except to  ensure that withdrawals are made only upon the order of properly authorized  representatives of the Company.  G. At annual intervals, or more frequently but never more frequently than quarterly, the  Company shall prepare a specific report of the Reinsurer’s Obligations, for the sole purpose  of amending the LOC or other method of funding, in the following manner:  1. If the report shows that the Reinsurer’s Obligations exceed the available balance of  the funds withheld and/or cash advances and/or escrow accounts and/or LOC and/or  Trust Account as of the report date, the Reinsurer shall, within 30 days after receipt of  

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 20 1-22-21  notice of such excess, make an adjustment to increase the available balance of funds  withheld and/or cash advances and/or escrow accounts and/or LOC and/or Trust  Account by the amount of such excess.  2. If, however, the report shows that the Reinsurer’s Obligations are less than the  available balance of the funds withheld and/or cash advances and/or escrow accounts  and/or LOC and/or Trust Account, as of the report date, the Company shall, within  30 days after receipt of written request from the Reinsurer, release such excess  funding by making or allowing an adjustment to the funds withheld and/or cash  advances and/or escrow accounts and/or LOC and/or Trust Account.  Where the  Reinsurer is funding via a Trust Account, only amounts in excess of 102% of  Reinsurer’s Obligations shall be subject to release under this paragraph.  H. Should the Reinsurer be in breach of its obligations under this Article, notwithstanding  anything to the contrary elsewhere in this Contract, the Company may seek relief in respect  of said breach from any court having competent jurisdiction over the parties hereto.  ARTICLE XXIII  THIRD PARTY RIGHTS  This Contract is solely between the Company and the Reinsurer, and in no instance shall any  other party have any rights under this Contract except as expressly provided otherwise in the  INSOLVENCY ARTICLE.  ARTICLE XXIV  SEVERABILITY  If any provision of this Contract shall be rendered illegal or unenforceable by the laws,  regulations, or public policy of any state, such provision shall be considered void in such state,  but this shall not affect the validity or enforceability of any other provision of this Contract or the  enforceability of such provision in any other jurisdiction.  ARTICLE XXV  GOVERNING LAW  This Contract shall be governed as to performance, administration, and interpretation by the laws  of the State of Louisiana, exclusive of that state’s rules with respect to conflicts of law.   However, with respect to credit for reinsurance, the rules of all applicable states shall apply.  ARTICLE XVI  ACCESS TO RECORDS  A. The Reinsurer or its designated representative(s) approved by the Company, upon  providing reasonable advance notice to the Company, shall have access at the offices of the  Company or at a location to be mutually agreed, at a time to be mutually agreed, to inspect  the Company’s underwriting, accounting, or claim files pertaining to the subject matter of  

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 21 1-22-21  this Contract.  The Company shall determine the manner in which files shall be accessed by  the Reinsurer.  The Reinsurer may, at its own expense, reasonably request copies of such  files and agrees to pay the Company’s reasonable costs (including staff expense and other  overhead costs) incurred in procuring such copies.  B. The Reinsurer or its designated representative(s) shall not have access to Protected Records  related to a claim ceded to this Contract; however, the Reinsurer shall be permitted to have  access to those Protected Records described in subparagraph F.2 of this Article after the  Company’s final settlement or final adjudication of such underlying claim.  If Protected  Records are withheld, the Company shall advise the Reinsurer accordingly and the  Company shall take reasonable steps to provide the Reinsurer with sufficient information to  determine its liability hereunder.  Further, the Reinsurer or its designated representative(s)  shall not have access to any communications with any other reinsurer supporting the  Company in respect of business subject to this Contract and shall not have access to  Protected Records relating to any dispute between the Company and the Reinsurer.  C. If any undisputed amounts are overdue from the Reinsurer to the Company, the Reinsurer  shall have access to such records only upon payment of all such overdue amounts.  D. Upon completion of the audit, the Reinsurer and its representative(s) shall consult with the  Company promptly and in good faith, no later than 30 days after the completion of the  audit unless otherwise agreed, with respect to any and all questions or issues raised by the  audit.  If, as a result of the Reinsurer’s inspection of the Company’s files, any claim is  denied, contested, or disputed, the Reinsurer shall promptly provide the Company with a  summary of any reports or analysis completed by the Reinsurer’s personnel or by any third  party on behalf of the Reinsurer outlining the findings of the inspection and identifying the  reasons for contesting or disputing the subject claim.  E. Nothing in this Article requires the Company to maintain or to make available any  document for longer than the period required by the Company’s document retention  policies and procedures or the period required by applicable statute or regulation,  whichever is greater.  F. “Protected Records” are defined as communications, files, records, documents, or books:   1. Deemed by the Company to concern Trade Secrets of the Company (Trade Secrets  shall have the meaning provided in Section 1839 of the United States Economic  Espionage Act of 1996); or   2. Deemed by the Company to be subject to attorney-client privilege or work product  rule protection; or   3. Concerning individual private information that as a matter of law cannot be disclosed  by the Company.  

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 22 1-22-21  ARTICLE XXVII  CONFIDENTIALITY  A. The Reinsurer hereby acknowledges that the documents, information, and data provided to  the Reinsurer by the Company, whether directly or through an authorized agent, in  connection with the placement and execution of this Contract, inspection pursuant to the  ACCESS TO RECORDS ARTICLE, or any other information relating to this Contract,  (“Confidential Information”) are proprietary and confidential to the Company.  B. Absent the written consent of the Company, the Reinsurer shall not disclose any  Confidential Information to any third parties, including any affiliated companies, except  when:  1. The Confidential Information is publicly known or has become publicly known  through no unauthorized act of the Reinsurer; or  2. Required by retrocessionaires subject to the business ceded to this Contract; or  3. Required by state regulators performing an audit of the Reinsurer’s records and/or  financial condition; or  4. Required by external auditors performing an audit of the Reinsurer’s records in the  normal course of business.  C. Further, the Reinsurer agrees not to use any Confidential Information for any purpose not  permitted by this Contract or not related to the performance of their obligations or  enforcement of their rights under this Contract.  D. Notwithstanding the above, in the event that the Reinsurer is required by court order, other  legal process, or any regulatory authority to release or disclose any Confidential  Information, the Reinsurer agrees to provide the Company written notice of same prior to  such release or disclosure and to use its reasonable best efforts to assist the Company in  maintaining the confidentiality provided for in this Article.  E. The provisions of this Article shall extend to the officers, directors, and employees of the  Reinsurer and its affiliates, who have received Confidential Information in accordance with  this Contract, and shall be binding upon their successors and assigns.  F. The Reinsurer acknowledges that any unauthorized disclosure of Confidential Information  may cause irreparable harm to the Company.  If Confidential Information is acquired by or  made available to an unauthorized third party due to the Reinsurer’s breach of this Article,  the Reinsurer shall notify the Company immediately and the Company shall be entitled to  seek specific performance, including immediate issuance of a temporary restraining order  or preliminary injunction.  The Company shall be entitled to seek damages, attorney’s fees  and costs, and any other remedies available under the law due to the Reinsurer’s breach of  this Article.  The Company may concurrently or alternatively seek legal relief by way of  arbitration as provided for in this Contract.  

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 23 1-22-21  ARTICLE XXVIII  INSOLVENCY  A. In the event of the insolvency of the Company, this reinsurance shall be payable directly to  the Company or to its liquidator, receiver, conservator, or statutory successor, with  reasonable provision for verification, on the basis of the liability of the Company without  diminution because of the insolvency of the Company or because the liquidator, receiver,  conservator, or statutory successor of the Company has failed to pay all or a portion of any  claim.  It is agreed, however, that the liquidator, receiver, conservator, or statutory  successor of the Company shall give written notice to the Reinsurer of the pendency of a  claim against the Company, indicating the Policy reinsured which claim would involve a  possible liability on the part of the Reinsurer, within a reasonable time after such claim is  filed in the conservation or liquidation proceeding or in the receivership, and that during  the pendency of such claim, the Reinsurer may investigate such claim and interpose, at its  own expense, in the proceeding where such claim is to be adjudicated, any defense or  defenses that it may deem available to the Company or its liquidator, receiver, conservator,  or statutory successor.  The expense thus incurred by the Reinsurer shall be chargeable,  subject to the approval of the Court, against the Company as part of the expense of  conservation or liquidation to the extent of a proportionate share of the benefit that 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 agreed that, in the event of the insolvency of the Company, the reinsurance  under this Contract shall be payable directly by the Reinsurer to the Company or its  liquidator, receiver, conservator, or statutory successor, except 1) where this Contract  specifically provides another payee of such reinsurance in the event of the insolvency of  the Company or 2) where the Reinsurer with the consent of the direct insured or insureds  has assumed such Policy obligations of the Company as direct obligations of the Reinsurer  to the payee under such Policies and in substitution for the obligations of the Company to  such payees.  D. In the event of the insolvency of any company or companies listed in the designation of  “Company” under this Contract, this Article shall apply only to the insolvent company or  companies.  E. In the event of the insolvency of any company or companies covered hereunder, the laws of  the applicable domiciliary state(s) shall apply.  In the event of a conflict between any  provision of this Article and the laws of the domiciliary state of any company or companies  covered hereunder, that domiciliary state’s laws shall prevail.  

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 24 1-22-21  ARTICLE XXIX  ARBITRATION  A. As a condition precedent to any right of action hereunder, any irreconcilable dispute arising  out of the interpretation, performance, or breach of this Contract, including the formation  or validity thereof, whether arising before or after the expiry or termination of the Contract,  shall be submitted for decision to a panel of three arbitrators.  Notice requesting arbitration  shall be in writing and sent by certified mail, return receipt requested, or such reputable  courier service as is capable of returning proof of receipt of such notice by the recipient to  the party demanding arbitration.  B. Notwithstanding the provisions of the foregoing paragraph, the Company shall have the  option to either litigate or arbitrate any dispute in which the Reinsurer makes any allegation  of misrepresentation, non-disclosure, concealment, fraud, or bad faith and/or where the  Reinsurer has experienced a Special Termination Event, as defined in the SPECIAL  TERMINATION AND OTHER REMEDIES ARTICLE.  C. One arbitrator shall be appointed by each party.  If the responding party fails to appoint its  arbitrator within 30 days after its receipt of the claimant party’s notice requesting  arbitration, the claimant party, after 10 days’ notice by certified mail or reputable courier as  provided above of its intention to do so, may appoint the second arbitrator.  D. The two arbitrators shall, before instituting the hearing, appoint an impartial third arbitrator  who shall preside at the hearing.  Should the two arbitrators fail to choose the third  arbitrator within 30 days of the appointment of the second arbitrator, the parties shall  appoint the third arbitrator pursuant to the AIDA Reinsurance and Insurance Arbitration  Society – U.S. (ARIAS) Umpire Selection Procedure.  All arbitrators shall be disinterested  active or former senior executives of insurance or reinsurance companies or Underwriters  at Lloyd’s, London.  In the event of the resignation or death of any arbitrator, a  replacement shall be appointed in the same manner as the resigning or deceased arbitrator  was appointed and the newly constituted panel shall take all necessary and/or reasonable  measures to continue the arbitration proceedings without additional delay.  E. Within 30 days after notice of appointment of all arbitrators, the panel shall meet and  determine timely periods for briefs, discovery procedures and schedules for hearings. The  panel shall be relieved of all judicial formality and shall not be bound by the strict rules of  procedure and evidence.  Notwithstanding anything to the contrary in this Contract, the  arbitrators may at their discretion, consider underwriting and placement information  provided by the Company to the Reinsurer, as well as any correspondence exchanged by  the parties that is related to this Contract.  The arbitration shall take place in Baton Rouge,  Louisiana, or at such other place as the parties shall agree. The decision of any two  arbitrators shall be in writing and shall be final and binding.  The panel is empowered to  grant interim relief as it may deem appropriate.  F. This Contract shall be interpreted as an honorable engagement rather than as merely a legal  obligation.  The panel shall make its decision as promptly as possible following the  termination of the hearings, considering the terms and conditions expressed in this Contract  

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 25 1-22-21  and the custom and practice of the applicable insurance and reinsurance business.   Judgment upon the award may be entered in any court having jurisdiction thereof.  G. Arbitration proceedings are subject to consolidation as follows:  1. Single contract, multiple reinsurers, common issue:  If more than one Reinsurer is  involved in arbitration where there are common questions of law or fact and a  possibility of conflicting awards or inconsistent results, all such Reinsurers, at the  Company’s request, shall be joined in a single arbitration proceeding and shall  constitute and act as one party for purposes of this Article and communications shall  be made by the Company to each of the Reinsurers constituting the one party;  provided, however, 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 Reinsurers under the terms of this Contract from several to joint.  2. Single reinsurer, multiple contracts, common issue:  If any Reinsurer to this Contract  has subscribed to other reinsurance contracts with the Company, under which a  dispute has arisen where there are common questions of law or fact with the dispute  being arbitrated under this Contract and a possibility of conflicting awards or  inconsistent results, the Reinsurer, at the Company’s request, shall arbitrate all such  reinsurance disputes involving the same loss or common questions of law or fact in  one consolidated proceeding, subject to the provisions of this Article.  3. Single reinsurer, multiple contracts:  If any Reinsurer to this Contract has subscribed  to other reinsurance contracts with the Company and various disputes have arisen  under such contracts, regardless of whether or not there are common questions of law  or fact, if mutually agreed to by the parties hereto, the parties shall arbitrate all  reinsurance disputes in one consolidated proceeding, subject to the provisions of this  Article.   The agreement to consolidate disputes under this Contract and one or more other  reinsurance contracts will supersede all other reinsurance contracts entered into between  the Company and the Reinsurer, regardless of whether any other reinsurance contract may  require or address consolidation.  H. Each party shall bear the expense of the arbitrator selected by or for it and shall jointly and  equally bear with the other party the cost of the third arbitrator.  The remaining costs of the  arbitration shall be allocated by the panel.  The panel may, at its discretion, award such  further costs and expenses as it considers appropriate, including but not limited to  attorneys’ fees, to the extent permitted by law.  ARTICLE XXX  SERVICE OF SUIT  (This Article is applicable if the Reinsurer is not domiciled in the United States of America  and/or is not authorized in any State, Territory, or District of the United States where  authorization is required by insurance regulatory authorities.  This Article is not intended to  

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 26 1-22-21  conflict with or override the obligation of the parties to arbitrate their disputes in accordance  with the ARBITRATION ARTICLE.)  A. In the event of the failure of the Reinsurer to perform its obligations under this Contract,  the Reinsurer, at the request of the Company, shall submit to the jurisdiction of a court of  competent jurisdiction within the United States.  Nothing in this Article constitutes or  should be understood to constitute a waiver of the Reinsurer’s rights to commence an  action in any court of competent jurisdiction in the United States, to remove an action to a  United States District Court, or to seek a transfer of a case to another court as permitted by  the laws of the United States or of any state in the United States.  The Reinsurer, once the  appropriate court is selected, whether such court is the one originally chosen by the  Company and accepted by the Reinsurer or is determined by removal, transfer, or  otherwise, as provided for above, shall comply with all requirements necessary to give said  court jurisdiction and, in any suit instituted against it upon this Contract, and shall abide by  the final decision of such court or of any appellate court in the event of an appeal.  The  validity and/or enforceability of any arbitration award or judgment obtained in the United  States shall not be contested by the Reinsurer in any jurisdiction outside of the United  States.  B. Service of process in such suit may be made upon the law firm of Mendes and Mount, 750  Seventh Avenue, New York, NY 10019, or another party specifically designated by the  Reinsurer in its Interests and Liabilities Agreement attached hereto.  As respects Lloyd’s  underwriters, service of process shall be made upon Lloyd’s America, Attention: Legal  Department, 280 Park Avenue, East Tower, 25th Floor, New York, NY 10017.  C. Further, pursuant to any statute of any state, territory or district of the United States that  makes provision therefor, the Reinsurer hereby designates the Superintendent,  Commissioner or Director of Insurance, or other officer specified for that purpose in the  statute, or his/her successor or successors in office, as its true and lawful attorney upon  whom may be served any lawful process in any action, suit or proceedings instituted by or  on behalf of the Company or any beneficiary hereunder arising out of this Contract, and  hereby designates the above-named as the person to whom the said officer is authorized to  mail such process or a true copy thereof.  D. The individual named in Paragraph C shall be deemed the Reinsurer’s agent for the service  of process:  1. where the address designated in, or pursuant to paragraph B is invalid; or  2. to the extent necessary to bring this Contract into conformity with the applicable law  of a state with jurisdiction over the Company.  ARTICLE XXXI  MODE OF EXECUTION  This Contract may be executed either by an original written ink signature of paper documents, by  an exchange of facsimile copies showing the original written ink signature of paper documents,  or by electronic signature by either party employing appropriate software technology as to satisfy  

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 27 1-22-21  the parties at the time of execution that the version of the document agreed to by each party shall  always be capable of authentication and satisfy the same rules of evidence as written signatures.  The use of any one or a combination of these methods of execution shall constitute a legally  binding and valid signing of this Contract.  This Contract may be executed in one or more  counterparts, each of which, when duly executed, shall be deemed an original.  ARTICLE XXXII  SANCTIONS  Wherever potential coverage provided by this Contract would be in violation of any applicable  economic or trade sanctions, any such coverage will conform to applicable law.  ARTICLE XXXIII  NON-WAIVER  The failure of the Company or the Reinsurer to insist on compliance with this Contract or to  exercise any right or remedy hereunder shall not constitute a waiver of any rights contained in  this Contract nor prevent either party from thereafter demanding full and complete compliance  nor prevent either party from exercising such remedy in the future.  ARTICLE XXXIV  INTERMEDIARY  Willis Re Inc. is hereby recognized as the intermediary negotiating this Contract and through  whom all communications relating thereto shall be transmitted to the Company or the  Reinsurer.  Payments by the Company to Willis Re Inc. shall be deemed to constitute payment to  the Reinsurer and payments by the Reinsurer to Willis Re Inc. shall be deemed to constitute  payment to the Company only to the extent that such payments are actually received by the  Company.     

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 28 1-22-21  IN WITNESS WHEREOF, the Company by its duly authorized representative has executed  this Contract as of the date specified below:  Signed this         2nd                                    day of          February                                              , 2021.  MAISON INSURANCE COMPANY  /s/ Douglas Raucy         Signature  Douglas Raucy         Printed Name  President          Title    

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL   1-22-21  NUCLEAR INCIDENT EXCLUSION CLAUSE - PHYSICAL DAMAGE- REINSURANCE - U.S.A.  1. This Reinsurance does not cover any loss or liability accruing to the Reassured, directly or indirectly, and whether as Insurer or  Reinsurer, from any Pool of Insurers or Reinsurers formed for the purpose of covering Atomic or Nuclear Energy risks.    2. Without  in  any  way  restricting  the  operation  of  paragraph  (1)  of  this  clause,  this Reinsurance does not cover any loss or  liability accruing to the Reassured, directly or indirectly  and  whether  as  Insurer  or  Reinsurer,  from  any  insurance  against   Physical Damage (including business interruption or consequential loss arising out of such Physical Damage) to:     I. Nuclear reactor power plants including all auxiliary property on the site, or     II.     Any other nuclear reactor installation, including laboratories handling radioactive materials in connection with reactor  installations, and “critical facilities” as such, or     III.   Installations for fabricating complete fuel elements or for processing substantial quantities of “special nuclear material”,  and for reprocessing, salvaging, chemically separating, storing or disposing of “spent” nuclear fuel or waste materials, or     IV.   Installations other than those listed in paragraph (2) III above using substantial quantities of radioactive isotopes or other  products of nuclear fission.    3.     Without in any way restricting the operations of paragraphs (1) and (2) hereof, this Reinsurance does not cover any loss or  liability by radioactive contamination accruing to the Reassured, directly or indirectly, and whether as Insurer or Reinsurer, from  any insurance on property which is on the same site as a nuclear reactor power plant or other nuclear installation and which  normally would be insured therewith except that this paragraph (3) shall not operate     (a)    where Reassured does not have knowledge of such nuclear reactor power plant or nuclear installation, or    (b)     where said insurance contains a provision excluding coverage for damage to property caused by or resulting from  radioactive contamination, however caused. However on and after 1st January 1960 this sub-paragraph (b) shall only  apply provided the said radioactive  contamination  exclusion  provision  has  been  approved  by  the Governmental  Authority having jurisdiction thereof.    4.     Without in any way restricting the operations of paragraphs (1), (2) and (3) hereof, this Reinsurance does not cover any loss or  liability by radioactive contamination accruing to the Reassured, directly or indirectly, and whether as Insurer or Reinsurer, when  such radioactive contamination is a named hazard specifically insured against.    5. It is understood and agreed that this clause shall not extend to risks using radioactive isotopes in any form where the nuclear  exposure is not considered by the Reassured to be the primary hazard.    6. The term “special nuclear material” shall have the meaning given it in the Atomic Energy   Act of 1954 or by any law amendatory thereof.    7. Reassured to be sole judge of what constitutes: (a) substantial quantities, and (b) the extent of installation, plant or site.     Note:  Without in any way restricting the operation of paragraph (1) hereof, it is understood and agreed that    (a)     all policies issued by the Reassured on or before 31st December 1957 shall be free from the  application  of the  other   provisions  of  this  Clause  until  expiry  date  or 31st December  1960  whichever  first  occurs whereupon all the   provisions of this Clause shall apply.    (b)     with respect to any risk located in Canada policies issued by the Reassured on or before 31st December 1958 shall be  free from the application of the other provisions of this Clause until expiry date or 31st December 1960 whichever first  occurs whereupon all the provisions of this Clause shall apply.    12/12/57  NMA 1119    

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 1 1-22-21  POOLS, ASSOCIATIONS & SYNDICATES EXCLUSION CLAUSE  SECTION A:    EXCLUDING:     (a) All Business derived directly or indirectly from any Pool, Association or   Syndicate which maintains its own reinsurance facilities.    (b) Any Pool or Scheme (whether voluntary or mandatory) formed after March 1, 1968 for the  purpose of insuring Property whether on a country-wide basis or in respect of designated areas.   This exclusion shall not apply to so-called Automobile Insurance Plans or other Pools formed to  provide coverage for Automobile Physical Damage.    SECTION B:    1. Excluding business written by the Company for the same perils, which is known at the time to be insured by,  or in excess of underlying amounts placed in any Pool, Association, or Syndicate, whether by way of  insurance or reinsurance, formed for the purpose of writing any of the following:  Oil, Gas or Petro-Chemical Plants  Oil or Gas Drilling Rigs  Aviation Risks  2. The exclusion under paragraph 1 of this Section B does not apply:  (a) Where the Total Insured Value over all interests of the risk in question is less than $250,000,000.  (b) To interests traditionally underwritten as Inland Marine or Stock and/or Contents written on a Blanket  basis.  (c) To Contingent Business Interruption, except when the Company is aware that the key location is  known at the time to be insured in any Pool, Association or Syndicate named above, other than as  provided for under Section B (a).  SECTION C:    1. Nevertheless the Reinsurer specifically agrees that liability accruing to the Company from its participation in  Residual Market Mechanisms, including but not limited to the following, for all perils otherwise protected  hereunder shall not be excluded herefrom:  a. So-called “Beach and Windstorm Plans” and so-called “Coastal Pools”;  b.      All “FAIR Plan” and “Rural Risk Plan” business;  c.       California Earthquake Authority (“CEA”) or any similar entity.  2. However, this reinsurance does not include any increase in such liability resulting from:  a.      The inability of any other participant in such Residual Market Mechanisms to meet its liability;    

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL Page 2 1-22-21  b.      Any claim against a Residual Market Mechanism or any participant therein, including the Company,  whether by way of subrogation or otherwise, brought by or on behalf of any insolvency fund (as  defined in the Exclusions Article);  c. Any assessment or surcharge levied on the policyholder and therefore not a liability of the Company;  d.      The Company’s initial capital contribution to the CEA;  e.      Any assessments, other than interim and regular assessments, from a Residual Market Mechanism   included in subparagraph 1(c) above.  3.     The  Company  may  include  in  Ultimate  Net  Loss  for  any  Loss  Occurrence  covered hereunder only  the liability attributable to that Loss Occurrence.  If the relevant entity does not specify what portion of an  assessment is attributable to each Loss Occurrence, the Company may include in Ultimate Net Loss in  respect of each Loss Occurrence a percentage of the Company’s assessments from the relevant entity  related to the calendar year in which the Loss Occurrence commenced, regardless of when assessed, such  percentage to be determined by dividing the relevant entity’s losses arising from the Loss Occurrence by its  total losses for the calendar year.  4. The Company will deduct from Ultimate Net Loss amounts received as recoupment of any assessment that  has been included in the Ultimate Net Loss, provided the recoupment is directly allocable to the assessment  (“itemized recoupment”).  The Company shall use commercially reasonable efforts to recoup such  assessment.   Any amount received as an itemized recoupment of any assessment (whether under this  Contract or any predecessor contract), and therefore deductible from Ultimate Net Loss, shall not be  included in the subject premium of this Contract.  However, if a state levies assessments but does not allow itemized recoupment from policyholders, instead  allowing the Company to file an overall increased rate, any such premium increased thereby shall not be  deemed to be a recoupment that is deductible from Ultimate Net Loss.  Any recoupment received as part of  a general premium rate increase, not specifically itemized, shall be included as part of the subject premium  of this Contract or a successor contract, as applicable.    NOTES: Wherever used herein the terms:    “Company”   shall be understood to mean “Company”, “Reinsured”, “Reassured” or  whatever other term is used in the attached reinsurance document to  designate the reinsured company or companies.    “Agreement”   shall be understood to mean “Agreement”, “Contract”, “Policy” or  whatever other term is used to designate the attached reinsurance document.    “Reinsurers”   shall be understood to mean “Reinsurers”, “Underwriters” or whatever  other term is used in the attached reinsurance document to designate  the reinsurer or reinsurers.  

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL   1-22-21  TERRORISM EXCLUSION (PROPERTY TREATY REINSURANCE) N.M.A. 2930C  Notwithstanding any provision to the contrary within this reinsurance agreement or any endorsement  thereto, it is agreed that this reinsurance agreement excludes loss, damage, cost or expense directly or  indirectly caused by, contributed to by, resulting from, or arising out of or in connection with any act  of terrorism, as defined herein, regardless of any other cause or event contributing concurrently or in  any other sequence to the loss.    An act of terrorism includes any act, or preparation in respect of action, or threat of action designed to  influence the government de jure or de facto of any nation or political division thereof, or in pursuit of  political, religious, ideological, or similar purposes to intimidate the public or a section of the public  of any nation by any person or group(s) of persons whether acting alone or on behalf of or in  connection with any organization(s) or government(s) de jure or de facto, and which:    (i)        involves violence against one or more persons; or  (ii)       involves damage to property; or  (iii)      endangers life other than that of the person committing the action; or  (iv)      creates a risk to health or safety of the public or a section of the public; or  (v)       is designed to interfere with or to disrupt an electronic system.    This reinsurance agreement also excludes loss, damage, cost or expense directly or indirectly caused  by, contributed to by, resulting from, or arising out of or in connection with any action in controlling,  preventing, suppressing, retaliating against, or responding to any act of terrorism.    Notwithstanding the above and subject otherwise to the terms, conditions, and limitations of this  reinsurance agreement, in respect only of personal lines this reinsurance agreement will pay actual  loss or damage (but not related cost or expense) caused by any act of terrorism provided such act is  not directly or indirectly caused by, contributed to by, resulting from, or arising out of or in  connection with biological, chemical, radioactive, or nuclear pollution or contamination or explosion.              NMA2930c  22/11/02    

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL   1-22-21  MOLD EXCLUSION  This Contract excludes loss or liability in any way or to any extent arising out of the actual  or alleged presence or actual, alleged or threatened presence of fungi including, but not limited  to, mold, mildew, mycotoxins, microbial volatile organic compounds or other “Microbial  Contaminations”.  This includes:  a. any supervision, instruction, recommendations, warnings, or advice given or which should  have been given in connection with the above; and  b. any obligation to  share damages with or repay someone  else who  must  pay damages  because of such injury or damage.  For purposes of this exclusion, “Microbial Contamination” means any contamination, either  airborne or surface, which arises out of or is related to the presence of fungi, mold, mildew,  mycotoxins, microbial volatile organic compounds or spores, including, without limitation,  Penicillium, Aspergillus, Fusarium, Aspergillus Flavus and Stachybotrys Chartarum. Losses  resulting from the above causes do not in and of themselves constitute an event.  However, this exclusion shall not apply if the above causes of loss arise out of one or more of the  perils otherwise covered under this Contract.    

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL   1-22-21  CYBER LOSS LIMITED EXCLUSION CLAUSE  (PROPERTY TREATY REINSURANCE) NO. 1  1. Notwithstanding any provision to the contrary within this reinsurance agreement or any  endorsement thereto, this reinsurance agreement excludes all loss, damage, liability, cost or  expense of whatsoever nature directly or indirectly caused by, contributed to by, resulting  from, arising out of or in connection with:  1.1 any loss of, alteration of, or damage to or a reduction in the functionality, availability  or operation of a Computer System, unless subject to the provisions of paragraph 2;  1.2 any loss of use, reduction in functionality, repair, replacement, restoration or  reproduction of any Data, including any amount pertaining to the value of such Data.  2. Subject to the other terms, conditions and exclusions contained in this reinsurance  agreement, this reinsurance agreement will cover physical damage to property insured  under the original policies and any Time Element Loss directly resulting therefrom where  such physical damage is directly occasioned by any of the following perils:  fire, lightning, explosion, aircraft or vehicle impact, falling objects, windstorm, hail,  tornado, cyclone, hurricane, earthquake, volcano, tsunami, flood, freeze or weight of snow  Definitions  3. Computer System means any computer, hardware, software, communications system,  electronic device (including, but not limited to, smart phone, laptop, tablet, wearable  device), server, cloud or microcontroller including any similar system or any configuration  of the aforementioned and including any associated input, output, data storage device,  networking equipment or back up facility.   4. Data means information, facts, concepts, code or any other information of any kind that is  recorded or transmitted in a form to be used, accessed, processed, transmitted or stored by a  Computer System.  5. Time Element Loss means business interruption, contingent business interruption or any  other consequential losses.    LMA5410  06 March 2020    

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL   1-22-21  LIMITED COMMUNICABLE DISEASE EXCLUSION NO. 2  (PROPERTY TREATY REINSURANCE)  1. Notwithstanding any provision to the contrary within this reinsurance agreement, this  reinsurance agreement excludes any loss, damage, liability, claim, cost or expense of  whatsoever nature, directly or indirectly caused by, contributed to by, resulting from,  arising out of, or in connection with a Communicable Disease or the fear or threat (whether  actual or perceived) of a Communicable Disease regardless of any other cause or event  contributing concurrently or in any other sequence thereto.   2. Subject to the other terms, conditions and exclusions contained in this reinsurance  agreement, this reinsurance agreement will cover physical damage to property insured  under the original policies and any Time Element Loss directly resulting therefrom where  such physical damage is directly caused by or arising from any of the following perils: fire,  lightning, explosion, aircraft or vehicle impact, falling objects, windstorm, rainstorm, hail,  tornado, cyclone, typhoon, hurricane, earthquake, seaquake, seismic and/or volcanic  disturbance/eruption, tsunami, flood, freeze, ice storm, weight of snow or ice, avalanche,  meteor/asteroid impact, landslip, landslide, mudslide, bush fire, forest fire, riot, riot  attending a strike, civil commotion, vandalism and malicious mischief.  Definitions  3. Communicable Disease means any disease which can be transmitted by means of any  substance or agent from any organism to another organism where:  3.1 the substance or agent includes, but is not limited to, a virus, bacterium, parasite or  other organism or any variation thereof, whether deemed living or not, and  3.2 the method of transmission, whether direct or indirect, includes but is not limited to,  airborne transmission, bodily fluid transmission, transmission from or to any surface  or object, solid, liquid or gas or between organisms, and  3.3 the disease, substance or agent can cause or threaten damage to human health or  human welfare or can cause or threaten damage to, deterioration of, loss of value of,  marketability of or loss of use of property.  4. Time Element Loss means business interruption, contingent business interruption or any  other consequential losses.      LMA5503  15 May 2020     

 

        Maison Ins Co  17330N21 (Eff: 1-1-21)  Property Aggregate XOL   1-22-21  The Interests and Liabilities Agreement, constituting 1 page in total, has been omitted from this  exhibit because such agreement is not material and would be competitively harmful if publicly  disclosed.exhibit108

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL  1-15-21  MAISON INSURANCE COMPANY  Baton Rouge, Louisiana    PROPERTY AGGREGATE EXCESS OF LOSS   REINSURANCE CONTRACT                                                      _______________________    Certain identified information has been omitted from this exhibit because it is not material and  would be competitively harmful if publicly disclosed.  Redactions are indicated by [***]. 

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL  1-15-21  TABLE OF CONTENTS  ARTICLE  PAGE    I BUSINESS COVERED 1 II TERM 1 III SPECIAL TERMINATION AND OTHER REMEDIES 2 IV DEFINITIONS 6   Declaratory Judgment Expense 6   Extra Contractual Obligations/Loss in Excess of Policy Limits  6   Loss Adjustment Expense 7   Loss Occurrence 7   Named Storm 9   Net Earned Premium 9   Policy 9   Ultimate Net Loss 9 V TERRITORY 10 VI EXCLUSIONS 10 VII SPECIAL ACCEPTANCES 12 VIII LIMIT AND RETENTION 12 IX REINSURANCE PREMIUM 12 X OTHER REINSURANCE 13 XI NET RETAINED LINES 13 XII NOTICE OF LOSS AND LOSS SETTLEMENTS 13 XIII LATE PAYMENTS 14 XIV SALVAGE AND SUBROGATION 15 XV INDEMNIFICATION AND ERRORS AND OMISSIONS 15 XVI LIABILITY OF THE REINSURER 16 XVII ENTIRE AGREEMENT 16 XVIII OFFSET 16 XIX CURRENCY 17 XX TAXES 17 XXI FEDERAL EXCISE TAX 17 XXII RESERVES AND FUNDING 17 XXIII THIRD PARTY RIGHTS 20 XXIV SEVERABILITY 20 XXV GOVERNING LAW 20 

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL  1-15-21  XXVI ACCESS TO RECORDS 20 XXVII CONFIDENTIALITY 22 XXVIII INSOLVENCY 23 XXIX ARBITRATION 24 XXX SERVICE OF SUIT 26 XXXI MODE OF EXECUTION 27 XXXII SANCTIONS 27 XXXIII NON-WAIVER 27 XXXIV INTERMEDIARY 27  Nuclear Incident Exclusion Clause - Physical Damage-Reinsurance -  U.S.A.   Pools, Associations & Syndicates Exclusion Clause   Terrorism Exclusion (Property Treaty Reinsurance) N.M.A. 2930c   Mold Exclusion   Cyber Loss Limited Exclusion Clause (Property Treaty Reinsurance) No.  1   Limited Communicable Disease Exclusion No. 2 (Property Treaty  Reinsurance)    

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 1 1-15-21  PROPERTY AGGREGATE EXCESS OF LOSS   REINSURANCE CONTRACT  (the “Contract”)  between  MAISON INSURANCE COMPANY  Baton Rouge, Louisiana  (the “Company”)  including any and/or all of the subsidiary or affiliate companies that are now or may  hereafter come under the ownership, management and/or control of the Company    and  THE SUBSCRIBING REINSURER(S) EXECUTING THE  INTERESTS AND LIABILITIES AGREEMENT(S)  ATTACHED HERETO  (the “Reinsurer”)  ARTICLE I  BUSINESS COVERED  This Contract is to indemnify the Company in respect of the liability that may accrue to the  Company as a result of loss or losses under Policies classified by the Company as Property  business, in force at the inception of this Contract, or written or renewed during the term of this  Contract, subject to the terms and conditions hereafter set forth.  ARTICLE II  TERM  A. This Contract shall apply to all losses occurring during the period from January 1, 2021,  12:01 a.m. Central Daylight Saving Time, to January 1, 2022, 12:01 a.m. Central Daylight  Saving Time, or until such time as this Contract is terminated in accordance with the  provisions of the SPECIAL TERMINATION AND OTHER REMEDIES ARTICLE.    B. If this Contract is terminated or expires while a covered loss 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 had occurred prior to the termination or  expiration of this Contract, provided that no part of such loss is claimed against any  renewal or replacement of this Contract.  C. Notwithstanding the expiration or termination of the Reinsurer’s participation hereon, the  provisions of this Contract shall continue to apply to all obligations and liabilities of the  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 2 1-15-21  parties incurred hereunder until all such obligations and liabilities are fully performed and  discharged.  ARTICLE III  SPECIAL TERMINATION AND OTHER REMEDIES  A. The Company may terminate the share of the Reinsurer at any time, either during the term  or after the expiration of this Contract, by giving written notice to the Reinsurer in the  event the Reinsurer experiences one or more Special Termination Event(s).  The effective  date of termination shall be the date selected by the Company, which may be a date that is  retroactively applied up to a maximum of 90 days prior to the earliest of either the date of  public announcement or the date of discovery, as applicable, of the Reinsurer experiencing  one or more Special Termination Event(s), subject to the condition that such selected date  must be the last day of a calendar month.  A “Special Termination Event” shall be deemed  to have occurred in the event of any of the following circumstances:  1. A State Insurance Department or other legal authority orders the Reinsurer to cease  writing business;  2. The Reinsurer has voluntarily ceased assuming new and renewal reinsurance business  for the lines of business covered hereunder;  3. The Reinsurer has become insolvent or has been placed into liquidation or  receivership (whether voluntary or involuntary), or there have been instituted against  it proceedings for the appointment of a receiver, liquidator, rehabilitator, conservator,  or trustee in bankruptcy, or other agent known by whatever name, to take possession  of its assets or control of its operations;  4. For any period not exceeding 12 months, which commences no earlier than  12 months prior to the inception of this Contract, the Reinsurer’s policyholders’  surplus (or total stamp capacity by managing agent as respects Lloyd’s of London  syndicates), as reported in the financial statements of the Reinsurer, has been reduced  by 20% or more;  5. The Reinsurer has announced its intention to be, or has become merged with,  acquired or controlled by any company, corporation, or individual(s) not controlling  the Reinsurer’s operations previously;   6. The Reinsurer’s A.M. Best Financial Strength Rating has been suspended or  withdrawn or has been assigned or downgraded below “A-”;  7. The Reinsurer’s S&P Global Insurance Financial Strength Rating has been suspended  or withdrawn or has been assigned or downgraded below “A-” or, as respects Lloyd’s  of London, the S&P Global Rating of the Lloyd’s Market has been suspended or  withdrawn or has been assigned or downgraded below  “A-”;  8. The Reinsurer has reinsured its entire liability under this Contract without the  Company’s prior written consent;   

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 3 1-15-21  9. The Reinsurer has transferred its claims-paying authority under this Contract to an  unaffiliated entity or in any other way has assigned its interests or delegated its  obligations under this Contract to an unaffiliated entity without the Company’s prior  written consent. Notwithstanding the foregoing, the transfer of claims-paying  authority or administration to a third party, where the Reinsurer maintains control  over claims settlement decisions, shall not constitute a transfer of its claims-paying  authority for purposes of this subparagraph and agreement by a Lloyd’s syndicate to  follow claim settlements procedures under Lloyd’s 2006 Claims Settlement Scheme  or agreement by an International Underwriting Association of London company to  follow IUA Claims Agreement practices shall not constitute a transfer of its claims- paying authority, for purposes of this subparagraph;  10. The Reinsurer has failed to comply with the funding requirements set forth in the  RESERVES AND FUNDING ARTICLE; or  11. The Reinsurer, directly or through the actions of a parent company or an affiliated  entity, has invoked any statute, legislation, or jurisprudence that purports to enable  the Reinsurer to:  a. Require the Company to settle its claims liabilities, including but not limited to  any estimated or undetermined claims liabilities under this Contract, on an  accelerated basis.  This does not include any attempt to enforce a settlement of  claims liabilities under a commutation process to which the parties have agreed;  or  b. Novate its liabilities under this Contract to a third party without the Company’s  prior written consent.   Unless it is prohibited by law from doing so, immediately upon the Reinsurer’s knowledge  of a Special Termination Event, the Reinsurer must notify the Company of such event in  writing, by electronic mail, certified mail, or a nationally or internationally recognized  delivery service.  B. Where a Special Termination Event has taken place and after giving the Reinsurer prior  written notice by electronic mail, certified mail, or by a nationally or internationally  recognized delivery service, the Company may invoke any one or a combination of the  following:  1. The Company may terminate or reduce the Reinsurer’s share hereunder effective at  any time following the Reinsurer’s receipt of the written notice.  In such event, the  entire liability of the Reinsurer for losses subsequent to the date of termination shall  cease concurrently with the date of termination.  Upon such termination, the  Reinsurer shall refund to the Company the unearned portion of the reinsurance  premium paid to it hereon (calculated on a pro rata expiration basis) and any  minimum premium hereon shall be waived.  2. The Company may require the Reinsurer to fund its share of outstanding loss and  Loss Adjustment Expense reserves, reserves for losses and Loss Adjustment Expense  incurred but not reported to the Company (IBNR as determined by the Company),  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 4 1-15-21  and any other balances or financial obligations.  Within 30 days of the Company’s  written request to fund, the Reinsurer shall render the requested funding (less any  such amounts already funded pursuant to the provisions of the RESERVES AND  FUNDING ARTICLE) to the Company by means of one of the methods of funding  described in the RESERVES AND FUNDING ARTICLE.  The Company and the  Reinsurer may mutually agree on alternative methods of funding or the use of a  combination of methods.  The Company may draw upon such funding in accordance  with the provisions of the RESERVES AND FUNDING ARTICLE.  Within 60 days  following each subsequent calendar quarter, the Company may prepare and forward  to the Reinsurer a statement of the Reinsurer’s current funding obligation under this  subparagraph.  Where such amount exceeds the balance of funding already rendered  by the Reinsurer, the Reinsurer shall, within 30 days of its receipt of such statement,  increase the amount of funding available to the current, reported level.  If, however,  the statement shows that the Reinsurer’s current funding obligation is less than the  balance of funding as of the statement date, the Company shall, within 30 days after  receipt of written request from the Reinsurer, release such excess funding by making  the appropriate adjustment.  This funding option is available to the Company at any  time there remain any outstanding liabilities of the Reinsurer.  3. The Company may require that the Reinsurer commute all present and future  liabilities under this Contract in return for a full and final release of all such liabilities.   If the Company and Reinsurer cannot agree on the capitalized value of the  Reinsurer’s liabilities, they shall appoint an independent actuary.  If the Company and  Reinsurer cannot agree on an actuary, the Company and the Reinsurer shall each  nominate three individuals, of whom the other shall decline two, and the final  decision shall be made by drawing lots.  All the actuaries selected shall be  disinterested in the outcome of the commutation and shall be Fellows of the Casualty  Actuarial Society.  The decision in writing of the appointed actuary, when filed with  the parties hereto, shall be final and binding on both parties.  The expense of the  actuary and of the actuarial calculation shall be equally divided between the two  parties.  Said actuarial calculation shall take place in a location chosen by the  Company.  This commutation option is available to the Company at any time there  remain any outstanding liabilities of the Reinsurer.  Until the final resolution of any  such commutation, settlements of amounts due hereunder shall continue in  accordance with the terms of this Contract.  C. The Company may revoke its notice hereunder, prior to the date of termination, without  prejudice to reinstitute later if it so chooses.  D. The Company, at its sole option, may classify the Reinsurer as a “Run-off Reinsurer,”  where said Reinsurer experiences one or more of the Special Termination Events set forth  in subparagraphs 1, 2, 3, 8, and 9 under paragraph A above.   Notwithstanding any other provision of this Contract, in the event that a Reinsurer becomes  classified by the Company as a Run-off Reinsurer at any time, the Company may elect, by  giving written notice to the Run-off Reinsurer at any time thereafter, that all or any of the  following shall apply to the Run-off Reinsurer’s share hereunder:  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 5 1-15-21  1. If payment of any claim has been received from the Reinsurers constituting at least  70% of the interests and liabilities of all the Reinsurers that participated on this  Contract and are active as of the due date, it being understood that said date shall not  be later than 90 days from the date of transmittal by the intermediary of the initial  billing for each such payment, the Run-off Reinsurer shall be estopped from denying  such claim and must pay within 10 days following transmittal to the Run-off  Reinsurer of written notification of such payments.  For purposes of this  subparagraph, a Reinsurer shall be deemed to be active if it is not a Run-off  Reinsurer.  2. The interest penalty specified in the LATE PAYMENTS ARTICLE shall be  increased by 0.5% for each 30 days that the payment is past due, subject to a  maximum increase of 7.0%.  3. In the event that either party demands arbitration of a dispute between the Company  and the Run-off Reinsurer, and the amount in dispute is less than $250,000, unless the  arbitration notice includes a demand for rescission of this Contract, notwithstanding  the terms of the ARBITRATION ARTICLE, the dispute shall be resolved by a sole  arbitrator and the following procedures shall apply:  a. The sole arbitrator shall be chosen by mutual agreement of the parties within 15  business days after the demand for arbitration.  If the parties have not chosen an  arbitrator within the 15 business days after receipt of the arbitration notice, the  arbitrator shall be chosen in accordance with the Neutral Selection Procedure  modified for a single arbitrator, established by the AIDA Reinsurance and  Insurance Arbitration Society – U.S. (ARIAS) and in force on the date the  arbitration is demanded.  The nominated arbitrator must be available to read any  written submissions and hear testimony within 60 days of being chosen.  b. Within 10 business days after the arbitrator has been appointed, the parties shall  be notified of deadlines for the submission of briefs and documentary evidence,  as determined by the arbitrator.  There shall be no discovery or hearing unless  the parties agree to engage in limited discovery and/or a hearing.  Also, the  arbitrator can determine, without the consent of the parties, that a limited  hearing is necessary.  c. The arbitrator shall render a decision within 10 business days after the later of  the date on which briefs are submitted or the end of the limited hearing.  The  decision of the arbitrator shall be in writing and shall be final and binding on  both parties.  d. “Business days” mean days that are not a Saturday, Sunday or a U.S. federal  holiday.  E. The Company’s waiver of any rights provided in this Article is not a waiver of that right or  other rights at a later date.  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 6 1-15-21  ARTICLE IV  DEFINITIONS  The terms set forth below, wherever they appear in this Contract and regardless of whether they  appear in a singular or plural form, shall have the meanings given herein:  A. Declaratory Judgment Expense   “Declaratory Judgment Expense” shall mean all expenses incurred by the Company in  connection with a declaratory judgment action brought to determine the Company’s  defense and/or indemnification obligations that are allocable to a specific claim subject to  this Contract.  Declaratory Judgment Expense shall be deemed to have been incurred on the  date of the original loss giving rise to the declaratory judgment action.  B. Extra Contractual Obligations/Loss in Excess of Policy Limits   1. Extra Contractual Obligations   “Extra Contractual Obligations” shall mean those liabilities not covered under any  other provision of this Contract, including any punitive, exemplary, compensatory, or  consequential damages, which arise from the handling of any claim on business  covered hereunder; such liabilities arising because of, but not limited to, the  following:  failure to settle within the Policy limit, or by reason of alleged or actual  negligence, fraud or bad faith in rejecting an offer of settlement, in preparation of the  defense, in the trial of any action against its insured, reinsured, its insured’s or  reinsured’s assignee or a third party claimant, or in the preparation or prosecution of  an appeal consequent upon such action.  2. Loss in Excess of Policy Limits   “Loss in Excess of Policy Limits” shall mean amounts paid or damages payable by  the Company in excess of the Policy limit as a result of alleged or actual negligence,  fraud, or bad faith in failing to settle, and/or rejecting a settlement within the Policy  limit, in the preparation of the defense, in the trial of any action against its insured,  reinsured, its insured’s or reinsured’s assignee or a third party claimant, or in the  preparation or prosecution of an appeal consequent upon such action.  Loss in Excess  of Policy Limits is any amount for which the Company would have been  contractually liable to pay had it not been for the limits of the reinsured Policy.  3. Coverage for Extra Contractual Obligations loss and/or Loss in Excess of Policy  Limits shall not apply when such loss has been incurred due to an adjudicated finding  of fraud committed by a member of the Board of Directors or a corporate officer of  the Company acting individually or collectively or in collusion with a member of the  Board of Directors or a corporate officer or a partner of any other corporation or  partnership.  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 7 1-15-21  4. Any Extra Contractual Obligations and/or Loss in Excess of Policy Limits shall be  deemed to have occurred on the same date as the loss covered or alleged to be  covered under the Policy.  C. Loss Adjustment Expense   “Loss Adjustment Expense” shall mean all costs and expenses allocable to a specific claim  that are incurred by the Company in the investigation, appraisal, adjustment, settlement,  litigation, defense, disposition, or appeal of a specific claim, including court costs and costs  of supersedeas and appeal bonds, and including 1) pre-judgment interest, unless included as  part of the award or judgment; 2) post-judgment interest; 3) legal expenses and costs  incurred in connection with coverage questions and legal actions connected thereto,  including Declaratory Judgment Expense, except as provided in the “Ultimate Net Loss”  definition; 4) a pro rata share of salaries and expenses of Company field employees, and  expenses of other Company employees who have been temporarily diverted from their  normal and customary duties and assigned to the field adjustment of losses covered by this  Contract; and 5) subrogation, salvage and recovery expenses.  Loss Adjustment Expense  does not include salaries and expenses of employees, other than 4) above, and office and  other overhead expenses.  D. Loss Occurrence  1. "Loss Occurrence" shall mean the sum of all individual losses directly occasioned by  any one disaster, accident or loss or series of disasters, accidents or losses arising out  of one event which occurs within the area of one state of the United States and states  contiguous thereto and to one another. However, the duration and extent of any one  "Loss Occurrence" shall be limited to all individual losses sustained by the Company  occurring during any period of 168 consecutive hours arising out of and directly  occasioned by the same event, except that the term "Loss Occurrence" shall be further  defined as follows:  a. As regards storm or storm systems that are not a named storm, including, by  way of example and not limitation, ensuing wind, gusts, typhoon, tropical storm,  hail, rain, tornados, cyclones, ensuing flood, storm surge, fire following,  sprinkler leakage, riots, vandalism, collapse and water damage, all individual  losses sustained by the Company occurring during any period of 144  consecutive hours arising out of, caused by, occurring during, occasioned by or  resulting from the same event.  However, the event need not be limited to one  state or province or states or provinces contiguous thereto.  b. As regards riot, riot attending a strike, civil commotion, vandalism and  malicious mischief, all individual losses sustained by the Company occurring  during any period of 96 consecutive hours within the area of one municipality or  county and the municipalities or counties contiguous thereto arising out of and  directly occasioned by the same event.  The maximum duration of 96  consecutive hours may be extended in respect of individual losses which occur  beyond such 96 consecutive hours during the continued occupation of an  assured's premises by strikers, provided such occupation commenced during the  aforesaid period.  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 8 1-15-21  c. As regards earthquake (the epicenter of which need not necessarily be within the  territorial confines referred to in the introductory portion of this paragraph) and  fire following directly occasioned by the earthquake, only those individual fire  losses which commence during the period of 168 consecutive hours may be  included in the Company's Loss Occurrence.  d. As regards freeze, only individual losses directly occasioned by collapse,  breakage of glass and water damage (caused by bursting frozen pipes and tanks)  may be included in the Company's Loss Occurrence.  e. As regards firestorms, brush fires and any other fires or series of fires,  irrespective of origin (except as provided in subparagraphs b. and c. above), all  individual losses sustained by the Company which commence during any period  of 168 consecutive hours within the area of one state of the United States and  states contiguous thereto and to one another may be included in the Company's  Loss Occurrence.  2. For all Loss Occurrences hereunder, the Company may choose the date and time  when any such period of consecutive hours commences, provided that no period  commences earlier than the date and time of the occurrence of the first recorded  individual loss sustained by the Company arising out of that disaster, accident, or loss  or series of disasters, accidents, or losses.  Furthermore:  a. For all Loss Occurrences other than those referred to in subparagraphs 1.a. and  1.b. above, only one such period of 168 consecutive hours shall apply with  respect to one event.  b. As regards those Loss Occurrences referred to in subparagraph 1.a. above, only  one such period of consecutive hours (as set forth therein) shall apply with  respect to one event, regardless of the duration of the event.  c. As regards those Loss Occurrences referred to in subparagraph 1.b. above, if the  disaster, accident, or loss or series of disasters, accidents, or losses occasioned  by the event is of greater duration than 96 consecutive hours, then the Company  may divide that disaster, accident, or loss or series of disasters, accidents, or  losses into two or more Loss Occurrences, provided that no two periods overlap  and no individual loss is included in more than one such period.  3. It is understood that losses arising from a combination of two or more perils as a  result of the same event may be considered as having arisen from one Loss  Occurrence.  Notwithstanding the foregoing, the hourly limitations as stated above  shall not be exceeded as respects the applicable perils, and no single Loss Occurrence  shall encompass a time period greater than 168 consecutive hours, except as regards  those Loss Occurrences referred to in subparagraphs 1.c. and 1.e. above.   For the sake of clarity, it is noted that Named Storms (as defined below) are excluded from  coverage under this Contract, as provided at subparagraph A. 12. of the EXCLUSIONS  ARTICLE.  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 9 1-15-21  E. Named Storm   “Named Storm” shall mean any storm or storm system that has been declared by the  National Hurricane Center (“NHC”) or its successor or any other division of the National  Weather Service (“NWS”) to be a named storm at any time, which may include by way of  example and not limitation, hurricane, wind, gusts, typhoon, tropical storm, hail, rain,  tornados, cyclones, ensuing flood, storm surge, water damage, fire following, sprinkler  leakage, riots, vandalism, and collapse, and all losses and perils (including, by way of  example and not limitation, those mentioned previously in this sentence) in each case  arising out of , caused by, occurring during, occasioned by, or resulting from such storm or  storm system, including by way of example and not limitation the merging of one or more  separate storm(s) or storm system(s) into a combined storm surge event.   The duration of the Named Storm consists of the time period:  1. From and after 12:00 a.m. Eastern Standard Time on the date a watch, warning,  advisory, or other bulletin (whether for wind, flood, or otherwise) for such named  storm is first issued by the NHC or is successor or any other division of the NWS;  2. Continuing for a time period thereafter during which such named storm continues,  regardless of its category rating or lack thereof and regardless of whether the watch,  warning, or advisory or other bulletin remains in effect for such named storm;  3. Ending 96 hours following the issuance of the last watch, warning, or advisory or  other bulletin for such named storm or related to such named storm by the NHC or its  successor or any other division of the NWS.  F. Net Earned Premium   “Net Earned Premium” shall mean the gross earned premium of the Company for the  business reinsured hereunder, less the earned portion of premiums ceded by the Company  for reinsurance which inures to the benefit of this Contract.  G. Policy   “Policy” shall mean the Company’s binders, policies, and contracts, whether written or  oral, providing insurance or reinsurance on the business covered under this Contract.  H. Ultimate Net Loss  “Ultimate Net Loss” shall mean the amount of any settlement, award, or judgment paid by  the Company or for which the Company has become liable to pay, including 1) Loss  Adjustment Expense, 2) any pre-judgment interest that is included as part of an award or  judgment, and 3) 95% of Loss in Excess of Policy Limits, and 95% of Extra Contractual  Obligations, after making deductions for all salvages, subrogations and recoveries  (including amounts due from all reinsurances that inure to the benefit of this Contract,  whether recovered or not); provided, however, that in the event of the insolvency of the  Company, payment by the Reinsurer shall be made in accordance with the provisions of the  INSOLVENCY ARTICLE.  In the event a verdict or judgment is reduced by an appeal or a  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 10 1-15-21  settlement, subsequent to the entry of the judgment, however, resulting in an ultimate  saving on such verdict or judgment, or a judgment is reversed outright, the loss expense  incurred in securing such final reduction or reversal shall be prorated between the  Reinsurers and the Company in the proportion that each benefits from such reduction or  reversal.  Nothing herein shall be construed to mean that losses under this Contract are not  recoverable until the Company’s Ultimate Net Loss has been ascertained.  ARTICLE V  TERRITORY  The territorial limits of this Contract shall be identical with those of the Company’s Policies.  ARTICLE VI  EXCLUSIONS  A. This Contract does not apply to and specifically excludes the following:  1. Reinsurance assumed by the Company, except for (a) business assumed as part of an  assumption agreement with the intent to write the business as a primary policy at  renewal and (b) reinsurance by the Company of any direct business of subsidiary or  affiliate companies that are now or may hereafter come under the ownership,  management and/or control of the Company.  2. All liability of the Company arising by contract, operation of law, or otherwise,  from its participation or membership, whether voluntary or involuntary, in any  insolvency fund. “Insolvency fund” includes any guaranty fund, insolvency fund,  plan, pool, association, fund or other arrangement, however denominated,  established or governed, which provides for any assessment of or payment or  assumption by the Company of part or all of any claim, debt, charge, fee or other  obligation of an insurer, or its successors or assigns, which has  been declared  by  any competent  authority to  be  insolvent,  or  which  is  otherwise deemed unable to  meet any claim, debt, charge, fee or other obligation in whole or in part.  3. Financial guarantee and insolvency business.  4. Loss excluded by the attached Nuclear Incident Exclusion Clause – Physical Damage  – Reinsurance - U.S.A. – NMA 1119.  5. Losses excluded by the attached Pools, Associations and Syndicates Exclusion  Clause.  6. All assessments from Citizens Property Insurance Corporation and the Florida  Hurricane Catastrophe Fund.  7. Losses in respect of overhead  transmission and distribution lines and their  supporting structures other than those on or within 500 feet of the insured premises;  however, public utilities extension and/or suppliers extension and/or contingent  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 11 1-15-21  business interruption coverage are not subject to this exclusion, provided that these  are not part of a transmitters’ or distributors’ Policy.  8. Loss or damage caused by or resulting from war, invasion, hostilities, acts of foreign  enemies, civil war, rebellion, insurrection, military or usurped power, or martial law  or confiscation by order of any government or public authority, but this exclusion  shall not apply to loss or damage covered under a standard Policy with a standard  War Exclusion Clause.  9. Pollution as per the Company’s original Policy. However, this exclusion shall not  apply where the Company has sustained a loss as a result of its pollution exclusion  being deemed invalid or inapplicable by a court of law.  10. Losses excluded by the attached Terrorism Exclusion (Property Treaty Reinsurance)  N.M.A 2930C Clause.  11. Mold, as per the attached Mold Exclusion.  12. Any loss or losses, damage or damages directly or indirectly caused by, contributed  by, resulting from or arising out of or in connection with any Named Storm.  13. Losses excluded by the attached Cyber Loss Limited Exclusion Clause (Property  Treaty Reinsurance) No. 1 LMA5410.  14. Losses excluded by the attached Limited Communicable Disease Exclusion No. 2  (Property Treaty Reinsurance) LMA5503.  B. The exclusions enumerated in paragraph A above (except for subparagraphs 3, 4, 5, 8, 10,  13 and 14) shall not apply when they are merely incidental to the main operations or  exposures of the insured, provided such main operations or exposures are also covered by  the Company and are not themselves excluded from the scope of this Contract.  The  Company shall be the sole judge of what is “incidental.”  C. If the Company is inadvertently bound or is unknowingly exposed (due to error, automatic  provisions of policy coverage, or as imposed by law) on a risk otherwise excluded in  paragraph A above (except for subparagraphs 3, 4, 5, 8, 10, 13 and 14), such exclusion  shall be waived.  The duration of said waiver shall not extend beyond the time that notice  of such coverage has been received by a responsible underwriting authority of the  Company plus the minimum time thereafter for the Company to terminate such coverage or  Policy.  D. If the Company is required to accept an assigned risk, which conflicts with one or more of  the exclusions set forth in paragraph A above (except for subparagraphs 3, 4, 5, 8, 10, 13  and 14), this reinsurance shall apply, but up to the limit required by the applicable statute or  regulatory authority.  E. Should the decision of an arbitration panel convened pursuant to the provisions of a Policy  or any judicial or regulatory entity having jurisdiction invalidate any exclusion in or  expand coverage of the Company’s Policy that is also the subject of one or more of the  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 12 1-15-21  exclusions set forth in paragraph A above (except for subparagraphs 3, 4, 5, 8, 10, 13 and  14), then a loss for which the Company is liable because of such invalidation or expansion  of coverage shall not be excluded hereunder.  ARTICLE VII  SPECIAL ACCEPTANCES  A. Business that is not within the scope of this Contract may be submitted to the Reinsurer for  special acceptance hereunder and such business, if accepted by the Reinsurer, shall be  subject to all terms, conditions, and limitations of this Contract, except as modified by the  special acceptance.  Should denial of a request for special acceptance not be received from  the Reinsurer within three business days of the Reinsurer’s receipt of said request, the  special acceptance shall be deemed automatically agreed.    B. Any special acceptance business covered under the reinsurance contract being replaced by  this Contract shall be automatically covered hereunder.  Furthermore, should the Reinsurer  become a party to this Contract subsequent to the acceptance of any business not normally  covered hereunder, it shall automatically accept same as being part of this Contract.  ARTICLE VIII  LIMIT AND RETENTION  A. No claim shall be made hereunder unless the Company’s aggregate Ultimate Net Loss  exceeds $[***] as respects losses covered hereunder.  The Reinsurer shall then be liable for  the amount of Ultimate Net Loss in excess of the Company’s $[***] aggregate retention.   However, the Reinsurer's aggregate limit of liability for the term of this Contract shall not  exceed $[***] as respects all losses covered hereunder.  B. In making up the aggregate amounts of Ultimate Net Loss applying to paragraph A above,  the Company shall retain for its own account $[***] of Ultimate Net Loss from each Loss  Occurrence subject to this Contract.  Further, no more than $[***] of Ultimate Net Loss  from any one Loss Occurrence shall be used in making up the aggregate Ultimate Net Loss  subject to this Contract.  C. No claim arising from any one Loss Occurrence shall be made under this Contract unless at  least two risks insured by the Company are involved in that Loss Occurrence.  The  Company shall be the sole judge of what constitutes one “risk.”  ARTICLE IX  REINSURANCE PREMIUM  A. As premium for the reinsurance provided hereunder, the Company shall pay the Reinsurer  [***]% of its Net Earned Premium for the term of this Contract, subject to a minimum  premium of $[***].  In the event of termination of the Reinsurer’s share pursuant to the  provisions of the SPECIAL TERMINATION AND OTHER REMEDIES ARTICLE, for  the purposes of this paragraph, the term of this Contract shall be deemed to be the period  from its effective date to the effective date of such termination.  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 13 1-15-21  B. The Company shall pay the Reinsurer a deposit premium of $[***] in four equal  installments of $[***] on January 1, 2021, April 1, 2021, July 1, 2021, and October 1,  2021.  C. Within 60 days after the expiration or termination of this Contract, the Company shall  provide a report to the Reinsurer setting forth the premium due hereunder, computed in  accordance with paragraph A.  Any premium due the Reinsurer, less amounts previously  paid as deposits or otherwise, shall accompany said report or any premium received by the  Reinsurer that is in excess of the Company’s premium obligations hereunder shall be  returned by the Reinsurer within 15 days of its receipt of said report.  ARTICLE X  OTHER REINSURANCE  The Company shall be permitted to carry underlying reinsurance, recoveries under which shall  insure solely to the benefit of the Company and be entirely disregarded in applying all of the  provisions of this Contract.  The Company shall be permitted to maintain in force other  reinsurance, recoveries under which shall inure to the benefit of this Contract.  The premium for  any such reinsurance that inures to the benefit of this Contract shall not be included within the  subject premium hereunder.  ARTICLE XI  NET RETAINED LINES  A. This Contract applies only to that portion of any Policy that the Company retains net for its  own account (prior to deduction of any underlying reinsurance) and, in calculating the  amount of any loss hereunder and also in computing the amount or amounts in excess of  which this Contract attaches, only loss or losses in respect of that portion of any Policy that  the Company retains net for its own account shall be included.  B. The amount of the Reinsurer’s liability hereunder in respect of any loss or losses shall not  be increased by reason of the inability of the Company to collect from any other reinsurers,  whether specific or general, any amounts that may have become due from such reinsurers,  whether such inability arises from the insolvency of such other reinsurers or otherwise.  ARTICLE XII  NOTICE OF LOSS AND LOSS SETTLEMENTS  A. The Company shall advise the Reinsurer of all claims or losses that, in the opinion of the  Company, may result in a claim hereunder.  Furthermore, the Company shall notify the  Reinsurer of all subsequent developments to any claims and losses that, in the opinion of  the Company, may materially affect the position of the Reinsurer.  Inadvertent omission  in dispatching any notices shall in no way affect the obligations of the Reinsurer under  this Contract, provided the Company informs the Reinsurer of such omission promptly  upon discovery.  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 14 1-15-21  B. All loss settlements made by the Company that are within the terms and conditions of this  Contract and the original Policies shall be binding upon the Reinsurer, and the Reinsurer  agrees to pay or allow, as the case may be, its share of each such settlement immediately  upon receipt of proof of loss.  ARTICLE XIII  LATE PAYMENTS  (The provisions of this Article shall not be implemented unless specifically invoked in writing,  by one of the parties to this Contract.)  A. In the event that any amount due either party is not received by the intermediary named in  the INTERMEDIARY ARTICLE (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 a rate equal to the U.S. Prime Rate as published in The Wall Street  Journal on the first business day following the date a remittance becomes due plus  300 basis points; times  3. The amount past due, including accrued interest.  It is agreed that interest shall accumulate until payment of the original amount due plus  interest penalties has been received by the Intermediary.  B. The establishment of the payment due date shall, for purposes of this Article, be as follows:  1. Payments from the Reinsurer to the Company shall be due on the date on which the  demand for payment (including delivery of bordereaux or quarterly or monthly  reports) is received by the Reinsurer, and shall be overdue 30 days thereafter.  2. Payments from the Company to the Reinsurer shall be due on the dates specified  within this Contract.  Payments shall be overdue 30 days thereafter except for the first  installment of premium, if applicable, which shall be overdue 60 days from inception  or 30 days from final line-signing, whichever the later.  Reinstatement premium, if  applicable, shall have as a due date the date when the Company receives payment for  the claim giving rise to such reinstatement premium, and payment shall be overdue 30  days thereafter.  In the event a due date is not specifically stated for a given payment,  the overdue date shall be 30 days following the date of billing.   For purposes of interest calculations only, amounts due hereunder shall be deemed paid  upon receipt by the Intermediary.  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 15 1-15-21  C. The validity of any claim or payment may be contested under the provisions of this  Contract.  If the debtor party prevails in an arbitration, or any other proceeding, there shall  be no interest penalty due.  Otherwise, any interest shall be calculated and due as outlined  above.  Furthermore, if a debtor party advances payment of any amount hereunder that it is  contesting and prevails in such action, the other party shall reimburse the debtor party for  any such payment plus pay interest on same, at a rate calculated as per the provisions of  paragraph A, above; however, such calculation is to begin from the actual date of  remittance of funds from the debtor party through the date the funds are returned.  D. If the interest rate provided under this Article exceeds the maximum interest rate allowed  by applicable law, such interest rate shall be modified to the highest rate permitted by the  applicable law.  E. In the event arbitration is necessary to settle a dispute, the panel shall have the authority to  make a determination awarding interest to the prevailing party.  Interest, if any, awarded by  the panel shall supersede the interest amounts outlined herein.  F. Any interest owed pursuant to this Article may be waived by the party to which it is owed.   Waiver of such interest, however, shall not affect the waiving party’s rights to other interest  amounts due as a result of this Article.  ARTICLE XIV  SALVAGE AND SUBROGATION  A. The Company, at its sole discretion, may enforce its right to salvage and/or subrogation and  may prosecute all claims arising out of such right.    B. Any salvage, subrogation and/or other amounts recovered shall be used to reimburse the  Company’s excess reinsurers, including the Reinsurer hereon (and the Company, should it  carry a portion of excess coverage net) in the reverse order of their participation in the loss  before being used in any way to reimburse the Company for its primary loss.   C. All salvage, subrogation and/or other amounts recovered, after deduction of expense  applicable thereto, which are 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.  ARTICLE XV  INDEMNIFICATION AND ERRORS AND OMISSIONS  A. The Reinsurer is reinsuring, subject to the terms and conditions of this Contract, the  obligations of the Company under any Policy.  The Company shall be the sole judge as to:  1. what shall constitute a claim or loss covered under any Policy;  2. the Company’s liability thereunder;  3. the amount or amounts that it shall be proper for the Company to pay thereunder.  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 16 1-15-21  B. The Reinsurer shall be bound by the judgment of the Company as to the obligation(s)  and liability(ies) of the Company under any Policy.  C. Any inadvertent error, omission or delay in complying with the terms and conditions of  this Contract shall not be held to relieve either party hereto from any liability that would  attach to it hereunder if such error, omission or delay had not been made, provided  such error, omission or delay is rectified immediately upon discovery.  ARTICLE XVI  LIABILITY OF THE REINSURER  All reinsurances for which the Reinsurer shall be liable by virtue of this Contract shall be subject  in all respects to the same terms, conditions, interpretations, and waivers and to the same  modifications, alterations, and cancellations, as the respective Policies to which such  reinsurances relate, the true intent of the parties to this Contract being that the Reinsurer shall  follow the fortunes of the Company.  ARTICLE XVII  ENTIRE AGREEMENT  This Contract shall constitute the entire agreement between the parties with respect to the  business being reinsured hereunder and no understandings exist between the parties other than  those expressed in this Contract.  Any change or modification to this Contract shall be null and  void unless made by amendment to this Contract and signed by both parties.  This Article shall  not be construed as limiting in any way the admissibility, in the context of an arbitration or any  other legal proceeding, of evidence regarding the formation, interpretation, purpose, or intent of  this Contract.  ARTICLE XVIII  OFFSET  A. The Company and the Reinsurer shall have the right to offset any balance or amounts due  from one party to the other under the terms of this Contract.  The party asserting the right  of offset may exercise such right any time whether the balances due are on account of  premiums or losses or otherwise; however, in the event of the insolvency of any party  hereto, offset shall be in accordance with applicable law.  B. Notwithstanding the provisions of paragraph A above, a Reinsurer who experiences any of  the events described in paragraph A of the SPECIAL TERMINATION AND OTHER  REMEDIES ARTICLE shall not offset balances as outlined above without the prior  consent of the Company.  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 17 1-15-21  ARTICLE XIX  CURRENCY  A. Whenever the word “Dollars” or the “$” sign appears in this Contract, they shall be  construed to mean United States Dollars and all transactions under this Contract shall be in  United States Dollars.  B. Amounts paid or received by the Company in any other currency shall be converted to  United States Dollars at the rate of exchange at the date such transaction is entered on the  books of the Company.  ARTICLE XX  TAXES  The Company shall pay applicable taxes (except Federal Excise Tax, if any) on premiums  reported to the Reinsurer under this Contract.  ARTICLE XXI  FEDERAL EXCISE TAX  A. The Reinsurer has agreed to allow the applicable percentage of the premium payable  hereon (as imposed under the Internal Revenue Code) for the purpose of paying Federal  Excise Tax to the extent such premium is subject to such tax.  Should the Reinsurer claim  exempt status from Federal Excise Tax, it shall provide to the Company, upon its request,  proof that the exempt status adequately satisfies the rules as imposed under the Internal  Revenue Code and any other applicable U.S. government authority.  B. In the event of any return premium becoming due hereunder, the Reinsurer shall deduct the  applicable percentage from the return premium payable hereon and the Company or its  agent shall recover such tax from the United States Government.  C. As respects premiums ceded to the Reinsurer under this Contract, the Reinsurer agrees to  indemnify the Company for any liability, expense, interest, or penalty it may incur by  reason of the Reinsurer’s breach of this Article.  ARTICLE XXII  RESERVES AND FUNDING  A. The Reinsurer shall provide funding under the terms of this Article only if the Company  will be denied statutory credit for reinsurance ceded to that Reinsurer pursuant to the credit  for reinsurance law or regulations of the regulatory authority having jurisdiction over the  Company’s reserves.  B. As regards Policies issued by the Company coming within the scope of this Contract, the  Company agrees that, when it files with the insurance regulatory authority or sets up on its  books reserves for liabilities which it is required by law to set up, it shall forward to the  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 18 1-15-21  Reinsurer a report showing the proportion of such reserves which is applicable to the  Reinsurer.  The Reinsurer shall fund 100% of its portion of such reserves in respect of:  1. Loss and loss expense paid by the Company but not recovered from the Reinsurer;  2. Known outstanding losses that have been reported to the Reinsurer and loss expense  relating thereto;  3. Reserves for loss and loss expense incurred but not reported;  4. Unearned premium (if applicable);  5. Other amounts recoverable reported in Schedule F of the Company’s NAIC  Statement;  as shown in the report prepared by the Company (hereinafter referred to as “Reinsurer’s  Obligations”).  The Reinsurer’s Obligations shall be funded by funds withheld, cash  advances, escrow accounts for the benefit of the Company, Letters of Credit (“LOC”),  Trust Account, or a combination thereof.  The Reinsurer shall have the option of  determining the method of funding, subject always to the provision that (a) the method of  funding and (b) the terms and provisions of any such LOC or Trust Account and (c) the  quality of assets in any Trust Account are all acceptable to the Company and also meet the  requirements of each applicable insurance regulatory authority having jurisdiction over the  Company’s reserves.  In the event a provision of any such funding instrument jeopardizes  the Company’s ability to obtain full credit for reinsurance, such provision shall be void and  shall be amended to comply with applicable credit for reinsurance requirements.  The  Reinsurer shall provide funding and/or any adjustments thereto in time for the Company to  meet the requirements of each applicable insurance regulatory authority having jurisdiction  over the Company’s reserves, provided that the Company sends the report of Reinsurer’s  Obligations at least 15 days prior to the date such funding is required.  C. When funding in whole or in part by an LOC, the Reinsurer agrees to apply for and secure  timely delivery to the Company of a clean, irrevocable and unconditional LOC dated on or  before December 31 of the year in which the request is made (on or before the last day of  the calendar quarter for any quarterly adjustment), issued by a member of the Federal  Reserve System or any bank approved for use by the NAIC Securities Valuation Office,  and containing provisions acceptable to the insurance regulatory authorities having  jurisdiction over the Company’s reserves.  Such LOC shall be issued for a period of not  less than one year and shall include an “evergreen clause,” which automatically extends the  term for at least one additional year at each expiration date unless 60 days (or such other  time period as may be required by the applicable insurance regulatory authorities) prior to  any expiration date the issuing bank notifies the Company by certified or registered mail  that the issuing bank elects not to consider the LOC extended for any additional period.  If  the issuing bank of the LOC is put under negative credit watch by a major rating agency or  is removed from the list of banks approved by the NAIC Securities Valuation Office, the  Company may require that a replacement LOC be issued by a bank acceptable to the  Company, by providing the Reinsurer with written notice requesting such replacement  LOC.  If the Reinsurer fails to provide acceptable replacement security within 10 business  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 19 1-15-21  days following receipt of the Company’s notice, the Company may draw upon the existing  LOC in amounts equal to the Reinsurer’s Obligations.  D. The Reinsurer and Company agree that any funding provided by the Reinsurer pursuant to  the provisions of this Contract may be drawn upon at any time, notwithstanding any other  provision of this Contract, and be utilized by the Company or any successor, by operation  of law, of the Company including, without limitation, any liquidator, rehabilitator, receiver,  or conservator of the Company for the following purposes:  1. To reimburse the Company for the Reinsurer’s share of unearned premium on  Policies reinsured hereunder on account of cancellations of such Policies;  2. To reimburse the Company for the Reinsurer’s Obligations, the payment of which is  due under the terms of this Contract and which has not been otherwise paid;  3. To make refund of any sum which is in excess of the actual amount required to pay  the Reinsurer’s Obligations under this Contract (or in excess of 102% of Reinsurer’s  Obligations, if funding is provided by a Trust Account);  4. To fund an account with the Company for the Reinsurer’s Obligations if such LOC is  under notice of non-renewal or not replaced by the Reinsurer within 10 days prior to  its expiration.  Such cash deposit shall be held in an interest bearing account separate  from the Company’s other assets, and interest thereon not in excess of the prime rate  shall accrue to the benefit of the Reinsurer;  5. To pay the Reinsurer’s share of any other amounts the Company claims are due under  this Contract.   In the event the amount drawn by the Company on any funding provided by the Reinsurer  is in excess of the actual amount required for subparagraph 1, 2, or 4 or, in the case of  subparagraph 5, the actual amount determined to be due, the Company shall promptly  return to the Reinsurer the excess amount so drawn.  All of the foregoing shall be applied  without diminution because of insolvency on the part of the Company or the Reinsurer.  E. Deferral of funding that may be permitted for a certified reinsurer in the event of a  catastrophe shall not apply to any Reinsurer under this Contract.  F. The issuing bank shall have no responsibility whatsoever in connection with the propriety  of withdrawals made by the Company or the disposition of funds withdrawn, except to  ensure that withdrawals are made only upon the order of properly authorized  representatives of the Company.  G. At annual intervals, or more frequently but never more frequently than quarterly, the  Company shall prepare a specific report of the Reinsurer’s Obligations, for the sole purpose  of amending the LOC or other method of funding, in the following manner:  1. If the report shows that the Reinsurer’s Obligations exceed the available balance of  the funds withheld and/or cash advances and/or escrow accounts and/or LOC and/or  Trust Account as of the report date, the Reinsurer shall, within 30 days after receipt of  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 20 1-15-21  notice of such excess, make an adjustment to increase the available balance of funds  withheld and/or cash advances and/or escrow accounts and/or LOC and/or Trust  Account by the amount of such excess.  2. If, however, the report shows that the Reinsurer’s Obligations are less than the  available balance of the funds withheld and/or cash advances and/or escrow accounts  and/or LOC and/or Trust Account, as of the report date, the Company shall, within  30 days after receipt of written request from the Reinsurer, release such excess  funding by making or allowing an adjustment to the funds withheld and/or cash  advances and/or escrow accounts and/or LOC and/or Trust Account.  Where the  Reinsurer is funding via a Trust Account, only amounts in excess of 102% of  Reinsurer’s Obligations shall be subject to release under this paragraph.  H. Should the Reinsurer be in breach of its obligations under this Article, notwithstanding  anything to the contrary elsewhere in this Contract, the Company may seek relief in respect  of said breach from any court having competent jurisdiction over the parties hereto.  ARTICLE XXIII  THIRD PARTY RIGHTS  This Contract is solely between the Company and the Reinsurer, and in no instance shall any  other party have any rights under this Contract except as expressly provided otherwise in the  INSOLVENCY ARTICLE.  ARTICLE XXIV  SEVERABILITY  If any provision of this Contract shall be rendered illegal or unenforceable by the laws,  regulations, or public policy of any state, such provision shall be considered void in such state,  but this shall not affect the validity or enforceability of any other provision of this Contract or the  enforceability of such provision in any other jurisdiction.  ARTICLE XXV  GOVERNING LAW  This Contract shall be governed as to performance, administration, and interpretation by the laws  of the State of Louisiana, exclusive of that state’s rules with respect to conflicts of law.   However, with respect to credit for reinsurance, the rules of all applicable states shall apply.  ARTICLE XXVI  ACCESS TO RECORDS  A. The Reinsurer or its designated representative(s) approved by the Company, upon  providing reasonable advance notice to the Company, shall have access at the offices of the  Company or at a location to be mutually agreed, at a time to be mutually agreed, to inspect  the Company’s underwriting, accounting, or claim files pertaining to the subject matter of  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 21 1-15-21  this Contract.  The Company shall determine the manner in which files shall be accessed by  the Reinsurer.  The Reinsurer may, at its own expense, reasonably request copies of such  files and agrees to pay the Company’s reasonable costs (including staff expense and other  overhead costs) incurred in procuring such copies.  B. The Reinsurer or its designated representative(s) shall not have access to Protected Records  related to a claim ceded to this Contract; however, the Reinsurer shall be permitted to have  access to those Protected Records described in subparagraph F.2 of this Article after the  Company’s final settlement or final adjudication of such underlying claim.  If Protected  Records are withheld, the Company shall advise the Reinsurer accordingly and the  Company shall take reasonable steps to provide the Reinsurer with sufficient information to  determine its liability hereunder.  Further, the Reinsurer or its designated representative(s)  shall not have access to any communications with any other reinsurer supporting the  Company in respect of business subject to this Contract and shall not have access to  Protected Records relating to any dispute between the Company and the Reinsurer.  C. If any undisputed amounts are overdue from the Reinsurer to the Company, the Reinsurer  shall have access to such records only upon payment of all such overdue amounts.  D. Upon completion of the audit, the Reinsurer and its representative(s) shall consult with the  Company promptly and in good faith, no later than 30 days after the completion of the  audit unless otherwise agreed, with respect to any and all questions or issues raised by the  audit.  If, as a result of the Reinsurer’s inspection of the Company’s files, any claim is  denied, contested, or disputed, the Reinsurer shall promptly provide the Company with a  summary of any reports or analysis completed by the Reinsurer’s personnel or by any third  party on behalf of the Reinsurer outlining the findings of the inspection and identifying the  reasons for contesting or disputing the subject claim.  E. Nothing in this Article requires the Company to maintain or to make available any  document for longer than the period required by the Company’s document retention  policies and procedures or the period required by applicable statute or regulation,  whichever is greater.  F. “Protected Records” are defined as communications, files, records, documents, or books:   1. Deemed by the Company to concern Trade Secrets of the Company (Trade Secrets  shall have the meaning provided in Section 1839 of the United States Economic  Espionage Act of 1996); or   2. Deemed by the Company to be subject to attorney-client privilege or work product  rule protection; or   3. Concerning individual private information that as a matter of law cannot be disclosed  by the Company.  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 22 1-15-21  ARTICLE XXVII  CONFIDENTIALITY  A. The Reinsurer hereby acknowledges that the documents, information, and data provided to  the Reinsurer by the Company, whether directly or through an authorized agent, in  connection with the placement and execution of this Contract, inspection pursuant to the  ACCESS TO RECORDS ARTICLE, or any other information relating to this Contract,  (“Confidential Information”) are proprietary and confidential to the Company.   Confidential Information shall not include documents, information or data that the  Reinsurer can show:  1. Are publicly known or have become publicly known through no unauthorized act of  the Reinsurer;  2. Have been rightfully received from a third person without obligation of  confidentiality;  3. Were known by the Reinsurer prior to the placement of this Contract without an  obligation of confidentiality; or  4. Were independently developed by the receiving party or its affiliates not otherwise in  violation of this Article.  B. Absent the written consent of the Company, the Reinsurer shall not disclose any  Confidential Information to any third parties, excluding any affiliated companies, except  when:  1. Required by retrocessionaires subject to the business ceded to this Contract;  2. Required by state regulators performing an audit of the Reinsurer’s records and/or  financial condition;  3. Required by external auditors performing an audit of the Reinsurer’s records in the  normal course of business; or  4. Required by attorneys or arbitrators in connection with an actual or potential dispute  hereunder.  C. Further, the Reinsurer agrees not to use any Confidential Information for any purpose not  permitted by this Contract or not related to the performance of their obligations or  enforcement of their rights under this Contract.  D. Notwithstanding the above, in the event that the Reinsurer is required by court order, other  legal process, or any regulatory authority to release or disclose any Confidential  Information, the Reinsurer agrees, to the extent legally permitted, to provide the Company  written notice of same prior to such release or disclosure and to use its reasonable best  efforts to assist the Company, at the Company’s sole expense, in maintaining the  confidentiality provided for in this Article.  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 23 1-15-21  E. The provisions of this Article shall extend to the officers, directors, and employees of the  Reinsurer and its affiliates, who have received Confidential Information in accordance with  this Contract, and shall be binding upon their successors and assigns.  F. The Reinsurer acknowledges that any unauthorized disclosure of Confidential Information  may cause irreparable harm to the Company.  If Confidential Information is acquired by or  made available to an unauthorized third party due to the Reinsurer’s breach of this Article,  the Reinsurer shall notify the Company without undue delay upon discovery and the  Company shall be entitled to seek specific performance, including immediate issuance of a  temporary restraining order or preliminary injunction.  The Company shall be entitled to  seek damages, attorney’s fees and costs, and any other remedies available under the law  due to the Reinsurer’s breach of this Article.  The Company may concurrently or  alternatively seek legal relief by way of arbitration as provided for in this Contract.  ARTICLE XXVIII  INSOLVENCY  A. In the event of the insolvency of the Company, this reinsurance shall be payable directly to  the Company or to its liquidator, receiver, conservator, or statutory successor, with  reasonable provision for verification, on the basis of the liability of the Company without  diminution because of the insolvency of the Company or because the liquidator, receiver,  conservator, or statutory successor of the Company has failed to pay all or a portion of any  claim.  It is agreed, however, that the liquidator, receiver, conservator, or statutory  successor of the Company shall give written notice to the Reinsurer of the pendency of a  claim against the Company, indicating the Policy reinsured which claim would involve a  possible liability on the part of the Reinsurer, within a reasonable time after such claim is  filed in the conservation or liquidation proceeding or in the receivership, and that during  the pendency of such claim, the Reinsurer may investigate such claim and interpose, at its  own expense, in the proceeding where such claim is to be adjudicated, any defense or  defenses that it may deem available to the Company or its liquidator, receiver, conservator,  or statutory successor.  The expense thus incurred by the Reinsurer shall be chargeable,  subject to the approval of the Court, against the Company as part of the expense of  conservation or liquidation to the extent of a proportionate share of the benefit that 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 agreed that, in the event of the insolvency of the Company, the reinsurance  under this Contract shall be payable directly by the Reinsurer to the Company or its  liquidator, receiver, conservator, or statutory successor, except 1) where this Contract  specifically provides another payee of such reinsurance in the event of the insolvency of  the Company or 2) where the Reinsurer with the consent of the direct insured or insureds  has assumed such Policy obligations of the Company as direct obligations of the Reinsurer  to the payee under such Policies and in substitution for the obligations of the Company to  such payees.  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 24 1-15-21  D. In the event of the insolvency of any company or companies listed in the designation of  “Company” under this Contract, this Article shall apply only to the insolvent company or  companies.  E. In the event of the insolvency of any company or companies covered hereunder, the laws of  the applicable domiciliary state(s) shall apply.  In the event of a conflict between any  provision of this Article and the laws of the domiciliary state of any company or companies  covered hereunder, that domiciliary state’s laws shall prevail.  ARTICLE XXIX  ARBITRATION  A. As a condition precedent to any right of action hereunder, any irreconcilable dispute arising  out of the interpretation, performance, or breach of this Contract, including the formation  or validity thereof, whether arising before or after the expiry or termination of the Contract,  shall be submitted for decision to a panel of three arbitrators.  Notice requesting arbitration  shall be in writing and sent by certified mail, return receipt requested, or such reputable  courier service as is capable of returning proof of receipt of such notice by the recipient to  the party demanding arbitration.  B. Notwithstanding the provisions of the foregoing paragraph, the Company shall have the  option to either litigate or arbitrate any dispute in which the Reinsurer makes any allegation  of misrepresentation, non-disclosure, concealment, fraud, or bad faith and/or where the  Reinsurer has experienced a Special Termination Event, as defined in the SPECIAL  TERMINATION AND OTHER REMEDIES ARTICLE.  C. One arbitrator shall be appointed by each party.  If the responding party fails to appoint its  arbitrator within 30 days after its receipt of the claimant party’s notice requesting  arbitration, the claimant party, after 10 days’ notice by certified mail or reputable courier as  provided above of its intention to do so, may appoint the second arbitrator.  D. The two arbitrators shall, before instituting the hearing, appoint an impartial third arbitrator  who shall preside at the hearing.  Should the two arbitrators fail to choose the third  arbitrator within 30 days of the appointment of the second arbitrator, the parties shall  appoint the third arbitrator pursuant to the AIDA Reinsurance and Insurance Arbitration  Society – U.S. (ARIAS) Umpire Selection Procedure.  All arbitrators shall be disinterested  active or former senior executives of insurance or reinsurance companies or Underwriters  at Lloyd’s, London.  In the event of the resignation or death of any arbitrator, a  replacement shall be appointed in the same manner as the resigning or deceased arbitrator  was appointed and the newly constituted panel shall take all necessary and/or reasonable  measures to continue the arbitration proceedings without additional delay.  E. Within 30 days after notice of appointment of all arbitrators, the panel shall meet and  determine timely periods for briefs, discovery procedures and schedules for hearings. The  panel shall be relieved of all judicial formality and shall not be bound by the strict rules of  procedure and evidence.  Notwithstanding anything to the contrary in this Contract, the  arbitrators may at their discretion, consider underwriting and placement information  provided by the Company to the Reinsurer, as well as any correspondence exchanged by  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 25 1-15-21  the parties that is related to this Contract.  The arbitration shall take place in Baton Rouge,  Louisiana, or at such other place as the parties shall agree. The decision of any two  arbitrators shall be in writing and shall be final and binding.  The panel is empowered to  grant interim relief as it may deem appropriate.  F. This Contract shall be interpreted as an honorable engagement rather than as merely a legal  obligation.  The panel shall make its decision as promptly as possible following the  termination of the hearings, considering the terms and conditions expressed in this Contract  and the custom and practice of the applicable insurance and reinsurance business.   Judgment upon the award may be entered in any court having jurisdiction thereof.  G. Arbitration proceedings are subject to consolidation as follows:  1. Single contract, multiple reinsurers, common issue:  If more than one Reinsurer is  involved in arbitration where there are common questions of law or fact and a  possibility of conflicting awards or inconsistent results, all such Reinsurers, at the  Company’s request, shall be joined in a single arbitration proceeding and shall  constitute and act as one party for purposes of this Article and communications shall  be made by the Company to each of the Reinsurers constituting the one party;  provided, however, 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 Reinsurers under the terms of this Contract from several to joint.  2. Single reinsurer, multiple contracts, common issue:  If any Reinsurer to this Contract  has subscribed to other reinsurance contracts with the Company, under which a  dispute has arisen where there are common questions of law or fact with the dispute  being arbitrated under this Contract and a possibility of conflicting awards or  inconsistent results, the Reinsurer, at the Company’s request, shall arbitrate all such  reinsurance disputes involving the same loss or common questions of law or fact in  one consolidated proceeding, subject to the provisions of this Article.  3. Single reinsurer, multiple contracts:  If any Reinsurer to this Contract has subscribed  to other reinsurance contracts with the Company and various disputes have arisen  under such contracts, regardless of whether or not there are common questions of law  or fact, if mutually agreed to by the parties hereto, the parties shall arbitrate all  reinsurance disputes in one consolidated proceeding, subject to the provisions of this  Article.   The agreement to consolidate disputes under this Contract and one or more other  reinsurance contracts will supersede all other reinsurance contracts entered into between  the Company and the Reinsurer, regardless of whether any other reinsurance contract may  require or address consolidation.  H. Each party shall bear the expense of the arbitrator selected by or for it and shall jointly and  equally bear with the other party the cost of the third arbitrator.  The remaining costs of the  arbitration shall be allocated by the panel.  The panel may, at its discretion, award such  further costs and expenses as it considers appropriate, including but not limited to  attorneys’ fees, to the extent permitted by law.  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 26 1-15-21  ARTICLE XXX  SERVICE OF SUIT  (This Article is applicable if the Reinsurer is not domiciled in the United States of America  and/or is not authorized in any State, Territory, or District of the United States where  authorization is required by insurance regulatory authorities.  This Article is not intended to  conflict with or override the obligation of the parties to arbitrate their disputes in accordance  with the ARBITRATION ARTICLE.)  A. In the event of the failure of the Reinsurer to perform its obligations under this Contract,  the Reinsurer, at the request of the Company, shall submit to the jurisdiction of a court of  competent jurisdiction within the United States.  Nothing in this Article constitutes or  should be understood to constitute a waiver of the Reinsurer’s rights to commence an  action in any court of competent jurisdiction in the United States, to remove an action to a  United States District Court, or to seek a transfer of a case to another court as permitted by  the laws of the United States or of any state in the United States.  The Reinsurer, once the  appropriate court is selected, whether such court is the one originally chosen by the  Company and accepted by the Reinsurer or is determined by removal, transfer, or  otherwise, as provided for above, shall comply with all requirements necessary to give said  court jurisdiction and, in any suit instituted against it upon this Contract, and shall abide by  the final decision of such court or of any appellate court in the event of an appeal.  The  validity and/or enforceability of any arbitration award or judgment obtained in the United  States shall not be contested by the Reinsurer in any jurisdiction outside of the United  States.  B. Service of process in such suit may be made upon the law firm of Mendes and Mount, 750  Seventh Avenue, New York, NY 10019, or another party specifically designated by the  Reinsurer in its Interests and Liabilities Agreement attached hereto.  As respects Lloyd’s  underwriters, service of process shall be made upon Lloyd’s America, Attention: Legal  Department, 280 Park Avenue, East Tower, 25th Floor, New York, NY 10017.  C. Further, pursuant to any statute of any state, territory or district of the United States that  makes provision therefor, the Reinsurer hereby designates the Superintendent,  Commissioner or Director of Insurance, or other officer specified for that purpose in the  statute, or his/her successor or successors in office, as its true and lawful attorney upon  whom may be served any lawful process in any action, suit or proceedings instituted by or  on behalf of the Company or any beneficiary hereunder arising out of this Contract, and  hereby designates the above-named as the person to whom the said officer is authorized to  mail such process or a true copy thereof.  D. The individual named in Paragraph C shall be deemed the Reinsurer’s agent for the service  of process:  1. where the address designated in, or pursuant to paragraph B is invalid; or  2. to the extent necessary to bring this Contract into conformity with the applicable law  of a state with jurisdiction over the Company.  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 27 1-15-21  ARTICLE XXXI  MODE OF EXECUTION  This Contract may be executed either by an original written ink signature of paper documents, by  an exchange of facsimile copies showing the original written ink signature of paper documents,  or by electronic signature by either party employing appropriate software technology as to satisfy  the parties at the time of execution that the version of the document agreed to by each party shall  always be capable of authentication and satisfy the same rules of evidence as written signatures.  The use of any one or a combination of these methods of execution shall constitute a legally  binding and valid signing of this Contract.  This Contract may be executed in one or more  counterparts, each of which, when duly executed, shall be deemed an original.  ARTICLE XXXII  SANCTIONS  Wherever potential coverage provided by this Contract would be in violation of any applicable  economic or trade sanctions, any such coverage will conform to applicable law.  ARTICLE XXXIII  NON-WAIVER  The failure of the Company or the Reinsurer to insist on compliance with this Contract or to  exercise any right or remedy hereunder shall not constitute a waiver of any rights contained in  this Contract nor prevent either party from thereafter demanding full and complete compliance  nor prevent either party from exercising such remedy in the future.  ARTICLE XXXIV  INTERMEDIARY  Willis Re Inc. is hereby recognized as the intermediary negotiating this Contract and through  whom all communications relating thereto shall be transmitted to the Company or the  Reinsurer.  Payments by the Company to Willis Re Inc. shall be deemed to constitute payment to  the Reinsurer and payments by the Reinsurer to Willis Re Inc. shall be deemed to constitute  payment to the Company only to the extent that such payments are actually received by the  Company.  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 28 1-15-21  IN WITNESS WHEREOF, the Company by its duly authorized representative has executed  this Contract as of the date specified below:  Signed this         2nd                                    day of          February                                              , 2021.  MAISON INSURANCE COMPANY  /s/ Douglas Raucy         Signature  Douglas Raucy         Printed Name  President          Title    

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL   1-15-21  NUCLEAR INCIDENT EXCLUSION CLAUSE - PHYSICAL DAMAGE- REINSURANCE - U.S.A.  1. This Reinsurance does not cover any loss or liability accruing to the Reassured, directly or indirectly, and whether as Insurer or  Reinsurer, from any Pool of Insurers or Reinsurers formed for the purpose of covering Atomic or Nuclear Energy risks.    2. Without  in  any  way  restricting  the  operation  of  paragraph  (1)  of  this  clause,  this Reinsurance does not cover any loss or  liability accruing to the Reassured, directly or indirectly  and  whether  as  Insurer  or  Reinsurer,  from  any  insurance  against   Physical Damage (including business interruption or consequential loss arising out of such Physical Damage) to:     I. Nuclear reactor power plants including all auxiliary property on the site, or     II.     Any other nuclear reactor installation, including laboratories handling radioactive materials in connection with reactor  installations, and “critical facilities” as such, or     III.   Installations for fabricating complete fuel elements or for processing substantial quantities of “special nuclear material”,  and for reprocessing, salvaging, chemically separating, storing or disposing of “spent” nuclear fuel or waste materials, or     IV.   Installations other than those listed in paragraph (2) III above using substantial quantities of radioactive isotopes or other  products of nuclear fission.    3.     Without in any way restricting the operations of paragraphs (1) and (2) hereof, this Reinsurance does not cover any loss or  liability by radioactive contamination accruing to the Reassured, directly or indirectly, and whether as Insurer or Reinsurer, from  any insurance on property which is on the same site as a nuclear reactor power plant or other nuclear installation and which  normally would be insured therewith except that this paragraph (3) shall not operate     (a)    where Reassured does not have knowledge of such nuclear reactor power plant or nuclear installation, or    (b)     where said insurance contains a provision excluding coverage for damage to property caused by or resulting from  radioactive contamination, however caused. However on and after 1st January 1960 this sub-paragraph (b) shall only  apply provided the said radioactive  contamination  exclusion  provision  has  been  approved  by  the Governmental  Authority having jurisdiction thereof.    4.     Without in any way restricting the operations of paragraphs (1), (2) and (3) hereof, this Reinsurance does not cover any loss or  liability by radioactive contamination accruing to the Reassured, directly or indirectly, and whether as Insurer or Reinsurer, when  such radioactive contamination is a named hazard specifically insured against.    5. It is understood and agreed that this clause shall not extend to risks using radioactive isotopes in any form where the nuclear  exposure is not considered by the Reassured to be the primary hazard.    6. The term “special nuclear material” shall have the meaning given it in the Atomic Energy   Act of 1954 or by any law amendatory thereof.    7. Reassured to be sole judge of what constitutes: (a) substantial quantities, and (b) the extent of installation, plant or site.     Note:  Without in any way restricting the operation of paragraph (1) hereof, it is understood and agreed that    (a)     all policies issued by the Reassured on or before 31st December 1957 shall be free from the  application  of the  other   provisions  of  this  Clause  until  expiry  date  or 31st December  1960  whichever  first  occurs whereupon all the   provisions of this Clause shall apply.    (b)     with respect to any risk located in Canada policies issued by the Reassured on or before 31st December 1958 shall be  free from the application of the other provisions of this Clause until expiry date or 31st December 1960 whichever first  occurs whereupon all the provisions of this Clause shall apply.    12/12/57  NMA 1119    

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 1 1-15-21  POOLS, ASSOCIATIONS & SYNDICATES EXCLUSION CLAUSE  SECTION A:    EXCLUDING:     (a) All Business derived directly or indirectly from any Pool, Association or   Syndicate which maintains its own reinsurance facilities.    (b) Any Pool or Scheme (whether voluntary or mandatory) formed after March 1, 1968 for the  purpose of insuring Property whether on a country-wide basis or in respect of designated areas.   This exclusion shall not apply to so-called Automobile Insurance Plans or other Pools formed to  provide coverage for Automobile Physical Damage.    SECTION B:    1. Excluding business written by the Company for the same perils, which is known at the time to be insured by,  or in excess of underlying amounts placed in any Pool, Association, or Syndicate, whether by way of  insurance or reinsurance, formed for the purpose of writing any of the following:  Oil, Gas or Petro-Chemical Plants  Oil or Gas Drilling Rigs  Aviation Risks  2. The exclusion under paragraph 1 of this Section B does not apply:  (a) Where the Total Insured Value over all interests of the risk in question is less than $250,000,000.  (b) To interests traditionally underwritten as Inland Marine or Stock and/or Contents written on a Blanket  basis.  (c) To Contingent Business Interruption, except when the Company is aware that the key location is  known at the time to be insured in any Pool, Association or Syndicate named above, other than as  provided for under Section B (a).  SECTION C:    1. Nevertheless the Reinsurer specifically agrees that liability accruing to the Company from its participation in  Residual Market Mechanisms, including but not limited to the following, for all perils otherwise protected  hereunder shall not be excluded herefrom:  a. So-called “Beach and Windstorm Plans” and so-called “Coastal Pools”;  b.      All “FAIR Plan” and “Rural Risk Plan” business;  c.       California Earthquake Authority (“CEA”) or any similar entity.  2. However, this reinsurance does not include any increase in such liability resulting from:  a.      The inability of any other participant in such Residual Market Mechanisms to meet its liability;    

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL Page 2 1-15-21  b.      Any claim against a Residual Market Mechanism or any participant therein, including the Company,  whether by way of subrogation or otherwise, brought by or on behalf of any insolvency fund (as  defined in the Exclusions Article);  c. Any assessment or surcharge levied on the policyholder and therefore not a liability of the Company;  d.      The Company’s initial capital contribution to the CEA;  e.      Any assessments, other than interim and regular assessments, from a Residual Market Mechanism   included in subparagraph 1(c) above.  3.     The  Company  may  include  in  Ultimate  Net  Loss  for  any  Loss  Occurrence  covered hereunder only  the liability attributable to that Loss Occurrence.  If the relevant entity does not specify what portion of an  assessment is attributable to each Loss Occurrence, the Company may include in Ultimate Net Loss in  respect of each Loss Occurrence a percentage of the Company’s assessments from the relevant entity  related to the calendar year in which the Loss Occurrence commenced, regardless of when assessed, such  percentage to be determined by dividing the relevant entity’s losses arising from the Loss Occurrence by its  total losses for the calendar year.  4. The Company will deduct from Ultimate Net Loss amounts received as recoupment of any assessment that  has been included in the Ultimate Net Loss, provided the recoupment is directly allocable to the assessment  (“itemized recoupment”).  The Company shall use commercially reasonable efforts to recoup such  assessment.   Any amount received as an itemized recoupment of any assessment (whether under this  Contract or any predecessor contract), and therefore deductible from Ultimate Net Loss, shall not be  included in the subject premium of this Contract.  However, if a state levies assessments but does not allow itemized recoupment from policyholders, instead  allowing the Company to file an overall increased rate, any such premium increased thereby shall not be  deemed to be a recoupment that is deductible from Ultimate Net Loss.  Any recoupment received as part of  a general premium rate increase, not specifically itemized, shall be included as part of the subject premium  of this Contract or a successor contract, as applicable.    NOTES: Wherever used herein the terms:    “Company”   shall be understood to mean “Company”, “Reinsured”, “Reassured” or  whatever other term is used in the attached reinsurance document to  designate the reinsured company or companies.    “Agreement”   shall be understood to mean “Agreement”, “Contract”, “Policy” or  whatever other term is used to designate the attached reinsurance document.    “Reinsurers”   shall be understood to mean “Reinsurers”, “Underwriters” or whatever  other term is used in the attached reinsurance document to designate  the reinsurer or reinsurers.  

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL   1-15-21  TERRORISM EXCLUSION (PROPERTY TREATY REINSURANCE) N.M.A. 2930C  Notwithstanding any provision to the contrary within this reinsurance agreement or any endorsement  thereto, it is agreed that this reinsurance agreement excludes loss, damage, cost or expense directly or  indirectly caused by, contributed to by, resulting from, or arising out of or in connection with any act  of terrorism, as defined herein, regardless of any other cause or event contributing concurrently or in  any other sequence to the loss.    An act of terrorism includes any act, or preparation in respect of action, or threat of action designed to  influence the government de jure or de facto of any nation or political division thereof, or in pursuit of  political, religious, ideological, or similar purposes to intimidate the public or a section of the public  of any nation by any person or group(s) of persons whether acting alone or on behalf of or in  connection with any organization(s) or government(s) de jure or de facto, and which:    (i)        involves violence against one or more persons; or  (ii)       involves damage to property; or  (iii)      endangers life other than that of the person committing the action; or  (iv)      creates a risk to health or safety of the public or a section of the public; or  (v)       is designed to interfere with or to disrupt an electronic system.    This reinsurance agreement also excludes loss, damage, cost or expense directly or indirectly caused  by, contributed to by, resulting from, or arising out of or in connection with any action in controlling,  preventing, suppressing, retaliating against, or responding to any act of terrorism.    Notwithstanding the above and subject otherwise to the terms, conditions, and limitations of this  reinsurance agreement, in respect only of personal lines this reinsurance agreement will pay actual  loss or damage (but not related cost or expense) caused by any act of terrorism provided such act is  not directly or indirectly caused by, contributed to by, resulting from, or arising out of or in  connection with biological, chemical, radioactive, or nuclear pollution or contamination or explosion.              NMA2930c  22/11/02    

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL   1-15-21  MOLD EXCLUSION  This Contract excludes loss or liability in any way or to any extent arising out of the actual  or alleged presence or actual, alleged or threatened presence of fungi including, but not limited  to, mold, mildew, mycotoxins, microbial volatile organic compounds or other “Microbial  Contaminations”.  This includes:  a. any supervision, instruction, recommendations, warnings, or advice given or which should  have been given in connection with the above; and  b. any obligation to  share damages with or repay someone  else who  must  pay damages  because of such injury or damage.  For purposes of this exclusion, “Microbial Contamination” means any contamination, either  airborne or surface, which arises out of or is related to the presence of fungi, mold, mildew,  mycotoxins, microbial volatile organic compounds or spores, including, without limitation,  Penicillium, Aspergillus, Fusarium, Aspergillus Flavus and Stachybotrys Chartarum. Losses  resulting from the above causes do not in and of themselves constitute an event.  However, this exclusion shall not apply if the above causes of loss arise out of one or more of the  perils otherwise covered under this Contract.    

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL   1-15-21  CYBER LOSS LIMITED EXCLUSION CLAUSE  (PROPERTY TREATY REINSURANCE) NO. 1  1. Notwithstanding any provision to the contrary within this reinsurance agreement or any  endorsement thereto, this reinsurance agreement excludes all loss, damage, liability, cost or  expense of whatsoever nature directly or indirectly caused by, contributed to by, resulting  from, arising out of or in connection with:  1.1 any loss of, alteration of, or damage to or a reduction in the functionality, availability  or operation of a Computer System, unless subject to the provisions of paragraph 2;  1.2 any loss of use, reduction in functionality, repair, replacement, restoration or  reproduction of any Data, including any amount pertaining to the value of such Data.  2. Subject to the other terms, conditions and exclusions contained in this reinsurance  agreement, this reinsurance agreement will cover physical damage to property insured  under the original policies and any Time Element Loss directly resulting therefrom where  such physical damage is directly occasioned by any of the following perils:  fire, lightning, explosion, aircraft or vehicle impact, falling objects, windstorm, hail,  tornado, cyclone, hurricane, earthquake, volcano, tsunami, flood, freeze or weight of snow  Definitions  3. Computer System means any computer, hardware, software, communications system,  electronic device (including, but not limited to, smart phone, laptop, tablet, wearable  device), server, cloud or microcontroller including any similar system or any configuration  of the aforementioned and including any associated input, output, data storage device,  networking equipment or back up facility.   4. Data means information, facts, concepts, code or any other information of any kind that is  recorded or transmitted in a form to be used, accessed, processed, transmitted or stored by a  Computer System.  5. Time Element Loss means business interruption, contingent business interruption or any  other consequential losses.    LMA5410  06 March 2020    

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL   1-15-21  LIMITED COMMUNICABLE DISEASE EXCLUSION NO. 2  (PROPERTY TREATY REINSURANCE)  1. Notwithstanding any provision to the contrary within this reinsurance agreement, this  reinsurance agreement excludes any loss, damage, liability, claim, cost or expense of  whatsoever nature, directly or indirectly caused by, contributed to by, resulting from,  arising out of, or in connection with a Communicable Disease or the fear or threat (whether  actual or perceived) of a Communicable Disease regardless of any other cause or event  contributing concurrently or in any other sequence thereto.   2. Subject to the other terms, conditions and exclusions contained in this reinsurance  agreement, this reinsurance agreement will cover physical damage to property insured  under the original policies and any Time Element Loss directly resulting therefrom where  such physical damage is directly caused by or arising from any of the following perils: fire,  lightning, explosion, aircraft or vehicle impact, falling objects, windstorm, rainstorm, hail,  tornado, cyclone, typhoon, hurricane, earthquake, seaquake, seismic and/or volcanic  disturbance/eruption, tsunami, flood, freeze, ice storm, weight of snow or ice, avalanche,  meteor/asteroid impact, landslip, landslide, mudslide, bush fire, forest fire, riot, riot  attending a strike, civil commotion, vandalism and malicious mischief.  Definitions  3. Communicable Disease means any disease which can be transmitted by means of any  substance or agent from any organism to another organism where:  3.1 the substance or agent includes, but is not limited to, a virus, bacterium, parasite or  other organism or any variation thereof, whether deemed living or not, and  3.2 the method of transmission, whether direct or indirect, includes but is not limited to,  airborne transmission, bodily fluid transmission, transmission from or to any surface  or object, solid, liquid or gas or between organisms, and  3.3 the disease, substance or agent can cause or threaten damage to human health or  human welfare or can cause or threaten damage to, deterioration of, loss of value of,  marketability of or loss of use of property.  4. Time Element Loss means business interruption, contingent business interruption or any  other consequential losses.      LMA5503  15 May 2020     

 

        Maison Ins Co  17331N21 (Eff: 1-1-21)  Property Aggregate XOL   1-15-21  The Interests and Liabilities Agreements, constituting 2 pages in total, have been omitted from  this exhibit because such agreements are not material and would be competitively harmful if  publicly disclosed.

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