Document:

Exh. 10.9 GenRe XOL Contract

UNITED PROPERTY & CASUALTY INSURANCE COMPANY

AGREEMENT MASTER NO. 10092

GENERAL REINSURANCE CORPORATION 
A Berkshire Hathaway Company

UNITED PROPERTY & CASUALTY INSURANCE COMPANY

AGREEMENT MASTER NO. 10092

TABLE OF CONTENTS

to 
AGREEMENT OF REINSURANCE
MASTER NO. 10092
between 
UNITED PROPERTY & CASUALTY INSURANCE COMPANY
and 
GENERAL REINSURANCE CORPORATION

	
					
	GENERAL ARTICLES
	Page

	 
	 
	 
	 
	 

	Article I
	 
	SCOPE OF AGREEMENT
	 
	1

	Article II
	 
	PARTIES TO THE AGREEMENT
	 
	1

	Article III
	 
	MANAGEMENT OF CLAIMS AND LOSSES
	 
	2

	Article IV
	 
	RECOVERIES
	 
	2

	Article V
	 
	PREMIUM REPORTS AND REMITTANCES
	 
	2

	Article VI
	 
	ERRORS AND OMISSIONS
	 
	2

	Article VII
	 
	SPECIAL ACCEPTANCES
	 
	3

	Article VIII
	 
	RESERVES AND TAXES
	 
	3

	Article IX
	 
	OFFSET
	 
	3

	Article X
	 
	INSPECTION OF RECORDS
	 
	3

	Article XI
	 
	TRIA INUREMENT
	 
	3

	Article XII
	 
	ARBITRATION
	 
	4

	Article XIII
	 
	INSOLVENCY OF THE COMPANY
	 
	5

	Article XIV
	 
	SEVERABILITY
	 
	5

	Article XV
	 
	GOVERNING LAW
	 
	5

	Article XVI
	 
	ENTIRE AGREEMENT
	 
	5

	Article XVII
	 
	MODE OF EXECUTION
	 
	5

	 
	 
	 
	 
	 

	EXHIBIT A - EXCESS OF LOSS REINSURANCE (Per Risk) of Property Business

	 
	 
	 
	 
	 

	Section 1
	 
	BUSINESS SUBJECT TO THIS EXHIBIT
	 
	A-1

	Section 2
	 
	COMMENCEMENT
	 
	A-1

	Section 3
	 
	LIABILITY OF THE REINSURER
	 
	A-1

	Section 4
	 
	DEFINITIONS
	 
	A-2

	Section 5
	 
	EXCLUSIONS
	 
	A-6

	Section 6
	 
	OTHER REINSURANCE
	 
	A-9

	Section 7
	 
	REINSURANCE PREMIUM
	 
	A-9

	Section 8
	 
	AUTOMATIC REINSTATEMENT
	 
	A-9

	Section 9
	 
	REPORTS AND REMITTANCES
	 
	A-10

	Section 10
	 
	TERMINATION
	 
	A-11

	 
	 
	 
	 
	 

	ATTACHMENT

	 
	 
	 
	 
	 

	NUCLEAR INCIDENT EXCLUSION CLAUSE - PHYSICAL DAMAGE - REINSURANCE - USA N.M.A. 1119

GENERAL REINSURANCE CORPORATION 

AGREEMENT OF REINSURANCE 
MASTER NO. 10092 

between 

UNITED PROPERTY & CASUALTY INSURANCE COMPANY 
360 Central Avenue, Suite 900, St. Petersburg, Florida, 33701 
(herein referred to as the "Company") 

and 

GENERAL REINSURANCE CORPORATION 
a Delaware corporation having its principal offices at 
120 Long Ridge Road, Stamford, Connecticut 06902 
(herein referred to as the "Reinsurer") 
____________________________________________________________________________ 

GENERAL ARTICLES 

In consideration of the promises set forth in this Agreement, the parties agree as follows:
 
Article I - SCOPE OF AGREEMENT 

As a condition precedent to the Reinsurer's obligations under this Agreement, the Company shall cede to the Reinsurer the business described in this Agreement, and the Reinsurer shall accept such business as reinsurance from the Company.

This Agreement is comprised of the General Articles I through XVII and the Exhibit(s) listed below and each Exhibit which may be made a part of this Agreement. The terms of the General Articles and of the Exhibit(s) shall determine the rights and obligations of the parties. The terms of the General Articles shall apply to each Exhibit unless specifically amended therein. In the event of termination of all the Exhibits made a part of this Agreement, the General Articles shall automatically terminate when the liability of the Reinsurer under said Exhibits ceases. 

EXHIBIT A -  EXCESS OF LOSS REINSURANCE (Per Risk) of Property Business 
(Treaty ID No. 1015168) 

Article II - PARTIES TO THE AGREEMENT
 
This Agreement is solely between the Company and the Reinsurer. When more than one Company is named as a party to this Agreement, the first Company named shall be the agent of the other companies as to all matters pertaining to this Agreement. Performance of the obligations of each party under this Agreement shall be rendered solely to the other party. However, if the Company becomes insolvent, the liability of the Reinsurer shall be modified to the extent set forth in the article entitled INSOLVENCY OF THE COMPANY. In no instance shall any insured of the Company or any claimant against an insured of the Company have any rights under this Agreement. 

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GENERAL REINSURANCE CORPORATION 

Article III - MANAGEMENT OF CLAIMS AND LOSSES 

The Company shall investigate and settle or defend all claims and losses. When requested by the Reinsurer, the Company shall permit the Reinsurer, at the expense of the Reinsurer, to be associated with the Company in the defense or settlement of any claim, loss, or legal proceeding which involves or is likely to involve the Reinsurer. All payments of claims or losses by the Company within the terms and limits of its policies which are within the limits set forth in the applicable Exhibit shall be binding on the Reinsurer, subject to the terms of this Agreement. 

Article IV - RECOVERIES 

The Company shall pay to or credit the Reinsurer with the Reinsurer's portion of any recovery obtained from salvage, subrogation, other insurance, or otherwise. Adjustment Expense for recoveries shall be deducted from the amount recovered. However, if the Adjustment Expense incurred in obtaining recoveries exceeds the amount recovered, if any, the excess Adjustment Expense shall be apportioned between the parties in proportion to the liability of each party for the loss before the recovery was obtained. 

The Reinsurer shall be subrogated to the rights of the Company to the extent of its loss payments to the Company. The Company agrees to enforce its rights of salvage, subrogation, and its rights against insurers or other parties or to assign these rights to the Reinsurer. 

If the reinsurance under an Exhibit is on a share basis, the recoveries shall be apportioned between the parties in the same ratio as the amounts of their liabilities bear to the loss. If the reinsurance under an Exhibit is on an excess basis, recoveries shall be distributed to the parties in an order inverse to that in which their liabilities accrued. 

Article V - PREMIUM REPORTS AND REMITTANCES 

Premium reports and reinsurance premiums or other amounts due either party shall be remitted by a method mutually agreed between the Company and the Reinsurer. 

Article VI - ERRORS AND OMISSIONS 

The Reinsurer shall not be relieved of liability because of an error or accidental omission of the Company in reporting any claim or loss or any business reinsured under this Agreement, provided that the error or omission is rectified promptly after discovery. 

The Reinsurer shall be obligated only for the return of the premium paid for business reported but not reinsured under this Agreement. 

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GENERAL REINSURANCE CORPORATION 

Article VII - SPECIAL ACCEPTANCES 

Business not within the terms of this Agreement may be submitted to the Reinsurer for special acceptance and, if accepted by the Reinsurer, shall be subject to all of the terms of this Agreement except as modified by the special acceptance. 

Article VIII - RESERVES AND TAXES 

The Reinsurer shall maintain the required reserves as to the Reinsurer's portion of unearned premium, if any, claims, losses, and Adjustment Expense. 

The Company shall be liable for all premium taxes on premium ceded to the Reinsurer under this Agreement. If the Reinsurer is obligated to pay any premium taxes on this premium, the Company shall reimburse the Reinsurer; however, the Company shall not be required to pay taxes twice on the same premium. 

Article IX - OFFSET 

The Company or the Reinsurer may offset any balance, whether on account of premium, commission, claims or losses, Adjustment Expense, salvage, or otherwise, due from one party to the other under this Agreement or under any other agreement heretofore or hereafter entered into between the Company and the Reinsurer. 

Article X - INSPECTION OF RECORDS 

The Company shall allow the Reinsurer to inspect, at reasonable times, the records of the Company relevant to the business reinsured under this Agreement, including the Company's files concerning claims, losses, or legal proceedings which involve or are likely to involve the Reinsurer. The Reinsurer's right of inspection shall continue after the termination of this Agreement. 

Article XI - TRIA INUREMENT 

As respects any "insured loss", as defined in the Terrorism Risk Insurance Act of 2002 as subsequently amended ("the Act"), for which the Reinsurer makes a payment to the Company under this Agreement, the following provisions shall apply. 

If the sum of: 

		
	(a) 
	Financial assistance provided under the Act to the Company and its affiliates, if any, (as "affiliate" is defined in the Act) with respect to all "insured loss" that applies to each "program year", as defined in the Act; and 

		
	(b)
	Amounts recoverable by the Company and its affiliates, if any, under all reinsurance which the Company and its affiliates, if any, purchase, including but not limited to this 

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GENERAL REINSURANCE CORPORATION 

reinsurance, all other treaty reinsurance and all facultative reinsurance, for any such "insured loss", 

exceeds the amount of the Company's and its affiliates', if any, gross "insured loss", the excess amount shall be allocated to the Reinsurer in the ratio that the Reinsurer's liability for the "insured loss" under this Agreement bears to the total recoverable reinsurance for the "insured loss" under (b) above. 

Upon receipt of payment under the Act by the Company and its affiliates, if any, the Company shall pay to or credit the Reinsurer under this Agreement with the Reinsurer's share of such excess amount determined in accordance with the preceding paragraph. 

Article XII - ARBITRATION 

All unresolved differences of opinion between the Company and the Reinsurer relating to this Agreement, including its formation and validity, shall be submitted to arbitration consisting of one arbitrator chosen by the Company, one arbitrator chosen by the Reinsurer, and a third arbitrator chosen by the first two arbitrators. 

The party demanding arbitration shall communicate its demand for arbitration to the other party by registered or certified mail, identifying the nature of the dispute and the name of its arbitrator, and the other party shall then be bound to name its arbitrator within 30 days after receipt of the demand. 

Failure or refusal of the other party to so name its arbitrator shall empower the demanding party to name the second arbitrator. If the first two arbitrators are unable to agree upon a third arbitrator after the second arbitrator is named, each arbitrator shall name three candidates, two of whom shall be declined by the other arbitrator, and the choice shall be made between the two remaining candidates by drawing lots. The arbitrators shall be disinterested and shall be active or retired officers of property or casualty insurance or reinsurance companies. 

The arbitrators shall adopt their own rules and procedures and are relieved from judicial formalities. In addition to considering the rules of law and the customs and practices of the insurance and reinsurance business, the arbitrators shall make their award with a view to effecting the intent of this Agreement. 

The decision of the majority of the arbitrators shall be in writing and shall be final and binding upon the parties. 

Each party shall bear the cost of its own arbitrator and shall jointly and equally bear with the other party the expense of the third arbitrator and other costs of the arbitration. In the event both arbitrators are chosen by one party, the fees of all arbitrators shall be equally divided between the parties. 

The arbitration shall be held at the times and places agreed upon by the arbitrators. 

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GENERAL REINSURANCE CORPORATION 

Article XIII - INSOLVENCY OF THE COMPANY 

In the event of the insolvency of the Company, the reinsurance proceeds will be paid to the Company or the liquidator, with reasonable provision for verification, on the basis of the claim allowed in the insolvency proceeding without diminution by reason of the inability of the Company to pay all or part of the claim, except as otherwise specified in the statutes of any state having jurisdiction of the insolvency proceedings or except where the Agreement, or other written agreement, specifically provides another payee of such reinsurance in the event of insolvency. 

The Reinsurer shall be given written notice of the pendency of each claim against the Company on the policy(ies) reinsured hereunder within a reasonable time after such claim is filed in the insolvency proceedings. The Reinsurer shall have the right to investigate each such claim and to interpose, at its own expense, in the proceeding where such claim is to be adjudicated, any defenses which it may deem available to the Company or its liquidator. The expense thus incurred by the Reinsurer shall be chargeable, subject to court approval, against the insolvent Company as part of the expense of liquidation to the extent of a proportionate share of the benefit which may accrue to the Company solely as a result of the defense undertaken by the Reinsurer. 

Article XIV - SEVERABILITY 

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

Article XV - GOVERNING LAW 

This Agreement shall be governed by and construed in accordance with the laws of the State of Florida. 

Article XVI - ENTIRE AGREEMENT 

This Agreement constitutes the entire Agreement between the parties with respect to the business reinsured hereunder. Any change or modification to this Agreement shall be made by written amendment to this Agreement and signed by the parties hereto. 

Article XVII - MODE OF EXECUTION 

The Reinsurer and the Company agree that this Agreement and all amendments hereto may be executed as follows: 

		
	(a) 
	By an original written ink signature of paper documents; or 

		
	(b) 
	By an exchange of facsimile copies or digitally scanned copies showing the original written ink signature of paper documents; or 

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GENERAL REINSURANCE CORPORATION 

		
	(c) 
	By an electronic signature employing any technology to capture a person’s signature in such a manner that the signature is unique to the person signing, is capable of verification to authenticate the signature, and is linked to the document signed. 

The use of any one or a combination of these modes of execution will constitute a legally binding and valid signature. 

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GENERAL REINSURANCE CORPORATION 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in duplicate, through their duly authorized representatives, 

UNITED PROPERTY & CASUALTY INSURANCE COMPANY 
this      21st     day of               January               , 2015, 
              DATE SIGNED BY COMPANY

/s/ Brad Martz                    
COMPANY OFFICER SIGNATURE 

Brad Martz                        
      PRINTED COMPANY OFFICER NAME 

CFO                            
      COMPANY OFFICER TITLE

/s/ Hollie Davis                    
      COMPANY WITNESS SIGNATURE 

GENERAL REINSURANCE CORPORATION 
and this    21st     day of               January               , 2015, 
              DATE SIGNED BY GRC 

/s/ James S. Lewis                    
GRC OFFICER SIGNATURE 

                       James S. Lewis                          
PRINTED GRC OFFICER NAME 

                 Senior Vice President                
GRC OFFICER TITLE 

/s/ John L.                         
GRC WITNESS SIGNATURE 

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GENERAL REINSURANCE CORPORATION 

EXHIBIT A - EXCESS OF LOSS REINSURANCE (Per Risk) of Property Business 
(Treaty ID No. 1015168) 

Attached to and made a part of 
AGREEMENT OF REINSURANCE MASTER NO. 10092 
____________________________________________________________________________

Section 1 - BUSINESS SUBJECT TO THIS EXHIBIT 

This Exhibit shall apply to Property Business written by the Company, which is defined as insurance which is classified in the NAIC form of annual statement as fire, allied lines, inland marine, commercial multiple peril (property coverages), homeowners multiple peril (property coverages) except those lines specifically excluded in the section entitled EXCLUSIONS, on Risks wherever located in the United States of America, its territories and possessions. On policies which provide inland marine coverage beyond these territorial limits, the territorial limits of this Exhibit shall be identical with those of the Company's policies. 

Section 2 - COMMENCEMENT 

This Exhibit shall apply to new and renewal policies of the Company becoming effective at and after 12:01 A.M., January 1, 2015, and policies of the Company in force at 12:01 A.M., January 1, 2015 with respect to claims and losses resulting from Occurrences taking place at and after the aforesaid time and date, and shall continue in force until terminated in accordance with the provisions of the section entitled TERMINATION. 

Section 3 - LIABILITY OF THE REINSURER 

The Reinsurer shall pay to the Company, with respect to each Risk of the Company, the amount of Net Loss sustained by the Company in excess of the Company Retention but not exceeding the Limits of Liability of the Reinsurer as set forth in the Schedule of Reinsurance. 

SCHEDULE OF REINSURANCE 
____________________________________________________________________________

Class of Business         Company Retention         Limits of Liability of the Reinsurer 
____________________________________________________________________________

Property Business             $1,000,000                     $2,000,000 
____________________________________________________________________________

The liability of the Reinsurer shall not exceed: 

		
	(a) 
	$4,000,000 with respect to all Net Loss on all Risks involved in one Occurrence. 

		
	(b) 
	$8,000,000 with respect to all Net Loss on all Risks involved in all Occurrences (including Terrorism Occurrences) taking place during each Agreement Year. 

A - 1
GENERAL REINSURANCE CORPORATION

		
	(c) 
	$4,000,000 with respect to all Net Loss arising out of all loss or damage directly or indirectly arising out of, caused by, or resulting from all Terrorism Occurrences taking place during each Agreement Year, regardless of any other cause or event contributing to such loss or damage in any way or at any time, or whether such loss or damage is accidental or intentional. However, no coverage shall be afforded under this Exhibit for: 

		
	(1) 
	As respects all business reinsured hereunder other than homeowners multiple peril (property coverages) and dwelling fire, all Net Loss arising out of all loss or damage directly or indirectly arising out of, caused by, or resulting from any Terrorism Occurrence but only if it appears to have been committed by an individual or individuals acting on behalf of any individual who is not a US citizen, or on behalf of a business or nonprofit entity, trust or estate formed under or based in a country outside of the United States and its territories, or on behalf of a country, state or political subdivision or unit outside of the United States, or any other foreign interest, and results in damage within the United States or the premises of a United States mission, provided the property and casualty industry insurance losses resulting from such Terrorism Occurrence exceed $5,000,000. 

		
	(2) 
	All Net Loss arising out of all loss or damage directly or indirectly arising out of, caused by, or resulting from any Terrorism Occurrence which involves (i) pathogenic chemical or biological substances, however caused; (ii) nuclear reaction or radiation, or radioactive contamination, however caused; or (iii) any other cause or event resulting from (i) or (ii) above. 

		
	(3) 
	All Net Loss on Risks with total insurable values over all interests of more than $50,000,000 arising out of all loss or damage directly or indirectly arising out of, caused by, or resulting from any Terrorism Occurrence. 

For purposes of sub-paragraphs (b) and (c) above, should the date of termination of this Exhibit coincide with the completion of an Agreement Year, the runoff period, if any, shall be combined with the last completed Agreement Year. Should the date of termination of this Exhibit not coincide with the completion of an Agreement Year, the last completed Agreement Year shall be combined with the remaining period of this Exhibit and the runoff period, if any, to constitute a single Agreement Year. 
 

Section 4 - DEFINITIONS 

		
	(a) 
	Company Retention 

This term shall mean the amount the Company shall retain for its own account; however, this requirement shall be satisfied if this amount is retained by the Company or its affiliated companies under common management or common ownership. 

		
	(b) 
	Net Loss 

A - 2
GENERAL REINSURANCE CORPORATION

This term shall mean all sums paid or payable by the Company within the terms and limits of its policies in settlement of claims or losses, including Adjustment Expense, after deduction of salvage and other recoveries and after deduction of amounts due from all other reinsurance, except catastrophe reinsurance, whether collectible or not. If the Company becomes insolvent, this definition shall be modified to the extent set forth in the article entitled INSOLVENCY OF THE COMPANY. 

Notwithstanding the provisions of the article entitled MANAGEMENT OF CLAIMS AND LOSSES, this term shall also include 90% of Extra Contractual Obligations and 90% of Losses in Excess of Policy Limits. 

Nothing in this definition shall imply that losses are not recoverable hereunder until the Company's Net Loss has been finally ascertained. 

For purposes hereof a sum shall be considered "payable only when (i) the Company is subject to a judgment on the claim from which it does not intend to appeal, or (ii) the Company has obtained a release, or (iii) the Company has accepted the insured’s proof of loss. 

		
	(c) 
	Adjustment Expense

 
This term shall mean expenditures by the Company within the terms of its policies in the direct defense of claims, and in connection with Extra Contractual Obligations and Losses in Excess of Policy Limits, and as allocated to an individual claim or loss (other than for office expenses and for the salaries and expenses of employees of the Company or of any subsidiary or related or wholly owned company of the Company) made in connection with the disposition of a claim, loss, or legal proceeding including investigation, negotiation, and legal expenses; court costs; prejudgment interest; and post judgment interest. 

Notwithstanding the provisions of the article entitled MANAGEMENT OF CLAIMS AND LOSSES, this term shall also be deemed to include any expenses incurred by the Company in bringing or in defending a declaratory judgment action brought to determine the Company's obligations to its insured with respect to a specific claim under a policy (or coverage part thereof) reinsured hereunder. However, the amount of any declaratory judgment expense that may be included in computation of Adjustment Expense shall not exceed the lesser of the amount of insurance under the policy or the Reinsurer's Limit of Liability for each Risk under this Exhibit.
 
The date on which a declaratory judgment expense is incurred by the Company shall be deemed, in all circumstances, to be the date of the original Occurrence. 

		
	(d) 
	Extra Contractual Obligations and Losses in Excess of Policy Limits 

The term "Extra Contractual Obligation" shall mean a loss payment which is not covered under any other provision of this Exhibit resulting from an action brought against the Company alleging negligence or bad faith arising from the Company's handling of any claim otherwise covered under this Exhibit on a policy reinsured hereunder. Such loss shall be inclusive of attorneys’ fees recoverable in such action.

A - 3
GENERAL REINSURANCE CORPORATION

The term "Loss in Excess of the Policy Limits" shall mean a payment in excess of the policy limit but otherwise within the terms of the policy, such payment made as a result of the Company's alleged negligence or bad faith in failing to settle within the policy limit, in rejecting an offer of settlement, in the preparation of the defense or in the trial of any action against its insured or in the preparation or prosecution of an appeal consequent upon such action. 

The date on which an Extra Contractual Obligation or a Loss in Excess of the Policy Limits is incurred by the Company shall be deemed, in all circumstances, to be the date of the original Occurrence. 

There shall be no coverage hereunder where the Extra Contractual Obligation or the Loss in Excess of the Policy Limits has been incurred due to the fraud or criminal conduct of a member of the Board of Directors or a corporate officer of the Company acting individually or collectively or in collusion with any individual or corporation or any other organization or party involved in the investigation, defense or settlement of any claim covered hereunder. 

Any insurance or other contract which indemnifies or protects the Company against claims which are the subject matter of this definition shall inure to the benefit of the Reinsurer and shall be deducted to arrive at the amount of the Company's Net Loss. The Company agrees to pursue a timely recovery under any such insurance or other contract. 

Loss otherwise covered hereunder includes punitive damages awarded against the Company where such coverage is permitted by applicable law. 

		
	(e) 
	Risk 

The Company shall establish what constitutes one Risk and shall make such determination at the time of acceptance, provided: 

		
	(1) 
	As respects homeowners or dwelling fire business reinsured hereunder, a dwelling and the coverages associated therewith shall be considered one Risk, unless such homeowners or dwelling fire property is contained in a Building reinsured hereunder or containing other property reinsured hereunder, and; 

		
	(2) 
	All insurance written under one or more policies of the Company against the same peril on the same Building and its contents, including time element coverages and associated property coverages, shall be combined. A Building and its contents, including time element coverages and associated property coverages, shall never be considered more than one Risk; and, 

		
	(3) 
	When two or more Buildings and their contents, including time element coverages and associated property coverages, are situated at the same General Location, the Company shall identify on its records at the time of acceptance by the Company those individual Buildings and their contents, including time element coverages and associated property coverages, that 

A - 4
GENERAL REINSURANCE CORPORATION

are to be considered to constitute each Risk; if such identification is not made, each Building and its contents, including time element coverages and associated property coverages, shall be considered to be a separate Risk; and, 

		
	(4) 
	Multiple General Locations shall never be combined and considered one Risk.

 
		
	(f) 
	Building 

This term shall mean each structure enclosed within exterior walls. Exterior walls are defined as the perimeter foundation walls on which four walls are constructed regardless of the number of additional structures placed upon this perimeter foundation. 

		
	(g) 
	General Location 

This term shall mean a contiguous and unbroken tract of land owned, occupied, or operated by the insured(s) as one property site. A General Location shall not be construed to be equal to a municipality, county, state or any other administrative or similar district, public or private. 

		
	(h) 
	Occurrence 

This term shall mean a loss or series of losses arising out of one event. 

		
	(i) 
	Terrorism Occurrence 

This term shall mean an Occurrence arising out of any Act of Terrorism, as described in paragraphs (1) and (2) below. 

		
	(1) 
	An Act of Terrorism means an activity, including the threat of an activity or any preparation for an activity, that (a) causes either (i) damage to property, or (ii) injury to persons; and (b) appears to be intended to: (i) intimidate or coerce a civilian population, or (ii) disrupt any segment of an economy, or (iii) influence the policy of a government by intimidation or coercion, or (iv) affect the conduct of a government by destruction, assassination, kidnapping or hostage-taking, or (v) advance a political, religious or ideological cause; provided, however, that an Act of Terrorism for purposes of this definition shall not include any act or threat as described above perpetrated by an official, employee or agent of a foreign state acting for or on behalf of such state. 

		
	(2) 
	An Act of Terrorism is also deemed to include any act authorized by a governmental authority for the purpose of preventing, terminating, countering or responding to any act or threat of terrorism or for the purpose of preventing or minimizing the consequences of any act or threat of terrorism. 

		
	(j) 
	Agreement Year 

This term shall mean each twelve-month period commencing on January 1st. 

A - 5
GENERAL REINSURANCE CORPORATION

		
	(k) 
	Company's Subject Earned Premium 

This term shall mean the earned portion of the premium written by the Company on the business reinsured hereunder, after deduction from such premium earned of the portion paid for share reinsurance which inures to the benefit of the Reinsurer. 

		
	(l) 
	Named Windstorm

 
This term shall mean a storm and all other atmospheric perils arising out of such storm that is identified and named as a Tropical Storm or Hurricane by the National Hurricane Center of the National Weather Service, operated by the National Oceanographic and Atmospheric Administration of the United States Government. 

Section 5 - EXCLUSIONS 

This Exhibit shall not apply to: 

		
	(a) 
	Reinsurance assumed by the Company other than reinsurance of primary business assumed from affiliated companies; 

		
	(b) 
	Nuclear incident per the Nuclear Incident Exclusion Clause - Physical Damage - Reinsurance attached hereto. Further, this Exhibit does not apply to loss or damage caused directly or indirectly by nuclear reaction or radiation, or radioactive contamination, but this exclusion does not preclude coverage for loss or damage which are covered under Insurance Services Office basic wordings. If the Company elects to file an exclusion independent of ISO, such exclusion will be deemed a suitable substitute provided the Company has submitted the wording to the Reinsurer and received the Reinsurer's prior approval; 

		
	(c) 
	Any loss or liability accruing to the Company directly or indirectly from any insurance written by or through any pool or association including pools or associations in which membership by the Company is required under any statutes or regulations; 

		
	(d) 
	Any liability of the Company arising from its participation or membership in any insolvency fund; 

		
	(e) 
	Any loss or damage directly or indirectly arising out of, caused by, or resulting from war, including undeclared or civil war; warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or insurrection, rebellion, revolution, usurped power or action taken by governmental authority in hindering or defending against any of these. War includes any activity that would be included as an "act of terrorism" as defined in the definition of Terrorism Occurrence, but for the fact that such activity was perpetrated by an official, employee or agent of a foreign state acting for or on behalf of such state. Such loss or damage is excluded regardless of any other cause or event contributing to such loss or damage in any way or at any time; 

A - 6
GENERAL REINSURANCE CORPORATION

		
	(f) 
	Loss, damage, costs or expenses arising out of the release, discharge, dispersal, or escape of pollutants; the extraction, removal, clean up, containment, monitoring, or detoxification of pollutants; or the removal, restoration, or replacement of polluted land or water; however, this exclusion does not apply to (1) coverage for loss, damage, costs, or expenses which are covered under Insurance Services Office or AAIS basic wordings; (2) any Risk located in a jurisdiction which has not approved the ISO or AAIS wordings; or (3) where other regulatory constraints prohibit the Company from implementing such wordings. If the Company elects to file an endorsement independent of ISO or AAIS, such endorsement will be deemed a suitable substitute provided the Company has submitted the wording to the Reinsurer and received the Reinsurer's prior approval. Nevertheless, if the insured elects to purchase any "buy back" or additional coverage options, such options shall not be covered hereunder even if such options are provided by or covered under ISO or AAIS wordings;

 
		
	(g) 
	Business classified as Boiler and Machinery, Equipment Breakdown or Machinery Breakdown, howsoever styled; ‡60 

		
	(h)
	Insurance on growing crops; fidelity, credit insurance, financial guaranty, residual value and insolvency business; mortgage impairment insurance and similar kinds of insurance; and insurance on animals under so-called mortality or fertility policies; all howsoever styled; 

		
	(i) 
	Difference in conditions insurance and similar kinds of insurance, howsoever styled; ‡60 

		
	(j) 
	Railroad rolling stock; 

		
	(k) 
	Offshore property Risks; 

		
	(l) 
	Watercraft, other than watercraft insured under a standard homeowners policy; ‡60

 
		
	(m) 
	Risks written on a layered basis, whether primary or excess of loss, or policies written with a deductible or franchise of more than $10,000; however, this exclusion shall not apply to policies which provide a percentage deductible or franchise in connection with windstorm or earthquake; ‡60 

		
	(n) 
	Satellites, including any related business interruption or cargo; 

		
	(o) 
	Inland marine business with respect to the following: 

		
	(1) 
	Bridges, dams, and tunnels; ‡60 

		
	(2) 
	Cargo insurance when written as such with respect to ocean, lake, or inland waterways vessels; ‡60 

		
	(3) 
	Faulty film, tape, processing and editing insurance and cast insurance; ‡60 

		
	(4) 
	Drilling rigs for natural fuels; ‡60 

A - 7
GENERAL REINSURANCE CORPORATION

		
	(5) 
	Radio, television, telephone towers or other towers used in communications; ‡60 

		
	(p) 
	Losses with respect to overhead transmission and distribution lines (including those used by cable operators and telecommunications providers) 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 these are not part of a transmitters' or distributors' policy; ‡60 

		
	(q) 
	Insurance against earthquake outside the State of South Carolina, howsoever written. Insurance against earthquake in the State of South Carolina except when written in conjunction with fire and otherwise eligible perils; ‡60 

		
	(r) 
	Insurance against flood, surface water, waves, tidal waves, overflow of any body of water, or their spray, all whether driven by wind or not, except when written in conjunction with fire and otherwise eligible perils; ‡60 

		
	(s) 
	Insurance against Named Windstorm 

		
	(t) 
	With respect to all business reinsured hereunder other than homeowners multiple peril and dwelling fire, any cost to replace or restore (1) Electronic Data or (2) information on Valuable Papers and Records which exist as Electronic Data or (3) coverage for business income or extra expense arising out of a suspension of operations caused by the destruction or corruption of (1) or (2) above. Electronic Data means information, facts or computer programs stored as or on, created or used on, or transmitted to or from computer software (including systems and applications software), on hard or floppy disks, CD-ROMs, tapes, drives, cells, data processing devices or any other repositories of computer software which are used with electronically controlled equipment. The term computer programs, referred to in the foregoing description of electronic data, means a set of related electronic instructions which direct the operations and functions of a computer or device connected to it, which enable the computer or device to receive, process, store, retrieve or send data. Valuable Papers and Records include but are not limited to proprietary information, books of account, deeds, manuscripts, abstracts, drawings and card index systems. However, this exclusion does not apply to costs and coverages which are covered under Insurance Services Office 2002 Commercial Property and 2006 Businessowners forms. Nevertheless, if the insured elects to purchase any "buy back" or additional coverage options, such options shall not be covered hereunder even if such options are provided by or covered under ISO wordings.

 
If the Company is bound, without the knowledge of and contrary to the instructions of the Company's supervisory underwriting personnel, on any business falling within the scope of exclusions followed by "‡60" above, the exclusions otherwise applicable shall be suspended with respect to such business or exposures for a period extending until 60 days after the date when an underwriting supervisor of the Company acquires knowledge thereof. However, if the Company elects to cancel the policy during the aforementioned 60-day period and is prevented from doing so within such period due to statute or regulation, the policy shall remain covered hereunder until the earliest date on which the Company may legally 

A - 8
GENERAL REINSURANCE CORPORATION

effectuate cancellation, but in no event past the second anniversary of the policy following the date the underwriting supervisor of the Company acquires such knowledge. 

Section 6 - OTHER REINSURANCE 

The obligations of the Company to reinsure business falling within the scope of this Exhibit and of the Reinsurer to accept such reinsurance are mandatory and no other reinsurance (either facultative or treaty) is permitted, except as provided for below. 

When the amount of insurance written by the Company on an individual Risk exceeds $3,000,000, the Company may purchase facultative excess of loss or share reinsurance for the excess amount on such Risk. The Company may also purchase facultative excess of loss reinsurance or facultative share reinsurance within the liability of the Reinsurer, if, in the underwriting judgment of the Company, the Reinsurer will be benefited thereby. In no event, however, shall the amount required with respect to the Company Retention be reduced. 

Recoveries from catastrophe reinsurance shall be deemed not to reduce the amount required with respect to the Company Retention. 

Section 7 - REINSURANCE PREMIUM 

The Company shall pay to the Reinsurer a reinsurance premium equal to 0.171% of the Company's Subject Earned Premium. 

Section 8 - AUTOMATIC REINSTATEMENT 

The Limits of Liability of the Reinsurer with respect to each Risk shall be reduced by an amount equal to the amount of liability paid by the Reinsurer, but that part of the liability of the Reinsurer that is so reduced shall be automatically reinstated from the date of the Occurrence for which payment is made; however, the Limits of Liability of the Reinsurer hereunder with respect to all Risks in all Occurrences taking place during each Agreement Year shall not exceed the amounts set forth in the section entitled LIABILITY OF THE REINSURER. In consideration of this automatic reinstatement: 

		
	(a) 
	For the first and second $2,000,000 so reinstated there shall be no additional reinsurance premium. 

		
	(b) 
	For the next $2,000,000 so reinstated, the Company shall pay to the Reinsurer an additional reinsurance premium that shall be the product of 100% of the reinsurance premium as set forth in the section entitled REINSURANCE PREMIUM for the Agreement Year multiplied by the amount of the reinstated Limit of Liability of the Reinsurer divided by $2,000,000. 

Any reinsurance premium so developed for each amount reinstated shall be in addition to the reinsurance premium set forth in the section entitled REINSURANCE PREMIUM. 

A - 9
GENERAL REINSURANCE CORPORATION

Section 9 - REPORTS AND REMITTANCES 

		
	(a) 
	Reinsurance Premium 

Within 25 days after the close of each calendar quarter, the Company shall render to the Reinsurer a report of the reinsurance premium for the quarter with respect to the Company's Subject Earned Premium during the quarter, summarizing the reinsurance premium by line of insurance; and the amount due the Reinsurer shall be remitted within 25 days after the close of the quarter. 

Within 45 days after the close of each Agreement Year, the Company shall render to the Reinsurer a report of the Company's Subject Earned Premium during the Agreement Year. The Company shall calculate the reinsurance premium thereon and remit to the Reinsurer with such report the amount of  reinsurance premium, if any, in excess of the minimum and deposit reinsurance premium paid for the Agreement Year. 

		
	(b)
	 Claims and Losses 

The Company shall report promptly to the Reinsurer, but within no more than 60 days after the Company becomes aware that the claim or loss falls within one of the criteria listed below: 

		
	(1) 
	Each claim or loss which, in the Company's opinion, may involve the reinsurance afforded by this Exhibit; 

		
	(2) 
	Any circumstance which, in the judgment of the Company, may result in an Extra Contractual Obligation or Loss in Excess of the Policy Limits that involves the reinsurance afforded by this Exhibit; 

		
	(3) 
	Any action brought against the Company alleging bad faith arising from the Company's handling of a claim otherwise covered under this Exhibit; 

		
	(4) 
	Any declaratory judgment action brought by or against the Company.

 
The Company shall advise the Reinsurer of the estimated amount of Net Loss in connection with each such claim or loss and of any subsequent changes in such estimates. 

Promptly upon receipt of a definitive statement of Net Loss from the Company, but within no more than 25 days after receipt of such statement, the Reinsurer shall pay to the Company the Reinsurer's portion of Net Loss. The Company shall report to the Reinsurer any subsequent changes in the amount of Net Loss, and the amount due either party shall be remitted promptly, but within no more than 25 days after receipt of such report. 

		
	(c) 
	P.C.S. Catastrophe Bulletins 

A - 10
GENERAL REINSURANCE CORPORATION

The Company shall furnish to the Reinsurer, upon request, the following information with respect to each catastrophe set forth in the Catastrophe Bulletins published by the Property Claim Services: 

		
	(1) 
	The preliminary estimates of the amount recoverable from the Reinsurer; 

		
	(2) 
	The Reinsurer's portion of claims, losses, and Adjustment Expenses paid less salvage recovered during each calendar quarter; 

		
	(3) 
	The Reinsurer's portion of reserves for claims, losses, and Adjustment Expenses at the end of each calendar quarter. 

		
	(d) 
	General 

In addition to the reports required by (a), (b), and (c) above, the Company shall furnish such other information as may be required by the Reinsurer for the completion of the Reinsurer's quarterly and annual statements and internal records. 

All reports shall be rendered on forms or in format acceptable to the Company and the Reinsurer. 

Section 10 - TERMINATION 

Either party may terminate this Exhibit at any time by sending to the other, by certified mail to its principal office, notice stating the time and date when, not less than 90 days after the date of mailing of such notice, termination shall be effective.
 
The Reinsurer shall not be liable for claims and losses resulting from Occurrences taking place at and after the effective time and date of termination. 

If this Exhibit is replaced, renewed, rewritten, or endorsed, the provisions of the Interlocking section, if any, of the successor Exhibit/Agreement/Endorsement shall also apply to this Exhibit provided that the successor Exhibit/Agreement/Endorsement specifically references this Exhibit. 

A - 11
GENERAL REINSURANCE CORPORATION

NUCLEAR INCIDENT EXCLUSION CLAUSE - PHYSICAL DAMAGE - 
REINSURANCE - USA 

(1)     This Agreement does not cover any loss or liability accruing to the Company 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 Agreement does not cover any loss or liability accruing to the Company, 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 Agreement does not cover any loss or liability by radioactive contamination accruing to the Company, 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 the Company 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 Agreement does not cover any loss or liability by radioactive contamination accruing to the Company, 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 Company 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)     The Company 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 Company 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 Company 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. 

 

Page 1 of 1
GENERAL REINSURANCE CORPORATIONExh. 10.10 SwissRe XOL Contract

 PROPERTY CATASTROPHE EXCESS OF LOSS
REINSURANCE AGREEMENT
NO.POR1179477 

EFFECTIVE: JANUARY 1, 2015 

between 

UNITED PROPERTY & CASUALTY INSURANCE COMPANY 

St. Petersburg, Florida 

and 

SWISS REINSURANCE AMERICA CORPORATION 

Armonk, New York 

PROPERTY CATASTROPHE EXCESS OF LOSS REINSURANCE AGREEMENT 
NO. POR1179477 

	
					
	ARTICLE
	 
	CONTENTS
	 
	PAGE

	 
	 
	 
	 
	 

	 
	 
	PREAMBLE
	 
	 

	I
	 
	BUSINESS COVERED
	 
	1

	II
	 
	EFFECTIVE DATE AND TERMINATION
	 
	2

	III
	 
	TERRITORY
	 
	2

	IV
	 
	LIMIT AND RETENTION
	 
	2

	V
	 
	REINSTATEMENT
	 
	3

	VI
	 
	DEFINITIONS
	 
	3

	VII
	 
	EXCLUSIONS
	 
	7

	VIII
	 
	SPECIAL ACCEPTANCE
	 
	10

	IX
	 
	REINSURANCE PREMIUM
	 
	10

	X
	 
	CLAIMS
	 
	12

	XI
	 
	LATE PAYMENTS
	 
	12

	XII
	 
	SALVAGE AND SUBROGATION
	 
	14

	XIII
	 
	ACCESS TO RECORDS
	 
	14

	XIV
	 
	TAXES
	 
	14

	XV
	 
	FOREIGN ACCOUNT TAX COMPLIANCE ACT
	 
	14

	XVI
	 
	OFFSET
	 
	15

	XVII
	 
	DISPUTE RESOLUTION
	 
	15

	XVIII
	 
	INSOLVENCY
	 
	17

	XIX
	 
	CONFIDENTIALITY
	 
	17

	XX
	 
	ERRORS AND OMISSIONS
	 
	18

	XXI
	 
	INTERNATIONAL TRADE CONTROLS
	 
	18

	XXII
	 
	ENTIRE AGREEMENT CLAUSE
	 
	19

	XXIII
	 
	LIABILITY OF THE REINSURER
	 
	19

	XXIV
	 
	NET RETAINED LINES
	 
	19

	XXV
	 
	AMENDMENTS
	 
	19

	 
	 
	SIGNATURES
	 
	 

	 
	 
	 
	 
	 

	ATTACHMENTS:
	 
	INSOLVENCY FUNDS EXCLUSION CLAUSE

	 
	 
	POOLS, ASSOCIATIONS AND SYNDICATES EXCLUSION CLAUSE

	 
	 
	TOTAL INSURED VALUE EXCLUSION CLAUSE

	 
	 
	POLLUTION AND SEEPAGE EXCLUSION CLAUSE

	 
	 
	NUCLEAR INCUDENT EXCLUSION CLAUSE - PHYSICAL DAMAGE - REINSURANCE - U.S.A.

	 
	 
	NUCLEAR INCIDENT EXCLUSION CLAUSE - REINSURANCE - NO. 4

	 
	 
	NUCLEAR INCIDENT EXCLUSION CLAUSE - PROPERTY TREATY

	 
	 
	TERRORISM EXCLUSION CLAUSE - PROPERTY TREATY

	 
	 
	REINSURANCE - NMA2930C

PROPERTY CATASTROPHE EXCESS OF LOSS
REINSURANCE AGREEMENT
NO. POR1179477
(hereinafter referred to as the "Agreement") 

between 

UNITED PROPERTY & CASUALTY INSURANCE COMPANY
 
St. Petersburg, Florida 

(hereinafter referred to as the "Company") 

and 

SWISS REINSURANCE AMERICA CORPORATION
Armonk, New York 

(hereinafter referred to as the "Reinsurer") 

ARTICLE I - BUSINESS COVERED 

		
	A. 
	The Reinsurer shall indemnify the Company on an excess of loss basis in respect of the Company's Ultimate Net Loss paid by the Company as a result of losses occurring during the term of this Agreement, for Policies in force as of January 1, 2015, and new and renewal Policies becoming effective on or after said date, subject to the terms and conditions contained herein. 

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

		
	C. 
	The performance of obligations by both parties under this Agreement shall be in accordance with a fiduciary standard of good faith and fair dealing. 

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	D. 
	Under this Agreement, the indemnity for reinsured loss applies to those Policies issued by the Company with respect to the following Lines of Business as classified in the Company's Annual Statement, subject to the exclusions set forth in Article VII- Exclusions. 

NAIC 
CODE: LINES OF BUSINESS: 

01 Fire 
02 Allied Lines 
09 Inland Marine 
04 Homeowners (Section I only) 
05 Commercial Multiple Peril (Section I only) 
25 Plate Glass 
26 Burglary and Theft 

ARTICLE II - EFFECTIVE DATE AND TERMINATION 

		
	A. 
	This Agreement shall apply to losses occurring within the period commencing 12:01 a.m., Eastern Standard Time, January 1, 2015, and ending 12:01 a.m., Eastern Standard Time, January 1, 2016. 

		
	B. 
	Upon termination of this Agreement, the Reinsurer shall be liable for losses occurring prior to the date of termination; however, the Reinsurer shall have no liability for losses occurring on or after the termination date of this Agreement. 

		
	C. 
	If this Agreement shall terminate while a Loss Occurrence covered hereunder is in progress, it is agreed that, subject to the other conditions of this Agreement, the Reinsurer shall indemnify the Company as if the entire Loss Occurrence had occurred during the time this Agreement is in force provided such Loss Occurrence covered hereunder started before the date of termination. 

ARTICLE III - TERRITORY 

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

ARTICLE IV - LIMIT AND RETENTION 

		
	A. 
	The limits and retentions provided under this Agreement are as follows: 

The Reinsurer shall be liable for the amount of the Company's Ultimate Net Loss in any one Loss Occurrence in excess of $3,000,000, but the Reinsurer shall never be liable for more than $ 22,000,000 in any one Loss Occurrence. 

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	B. 
	It is understood that Commercial business covered hereunder shall not exceed $1,000,000 any one risk, or so deemed. 

		
	C. 
	It is warranted by the Company that the reinsurance provided under this Agreement shall attach only when two or more Risks are involved in the same Loss Occurrence.

ARTICLE V - REINSTATEMENT 

		
	A. 
	Each claim hereunder reduces the amount of indemnity from the time of occurrence of the loss by the sum paid, but any amount so exhausted is hereby reinstated from the time the Loss Occurrence commences hereon. 

		
	B. 
	For each amount so reinstated the Company agrees to pay an additional premium calculated at pro rata of the annual premium hereon, being pro rata only as to the fraction of the limit of liability of this Agreement (i.e., the fraction of $22,000,000) so reinstated and 100% as to the term. 

		
	C. 
	Nevertheless, the Reinsurer's liability hereunder shall never exceed $22,000,000 in respect of any one Loss Occurrence and shall be further limited in all during the term of this Agreement to $44,000,000. 

ARTICLE VI - DEFINITIONS 

		
	A. 
	DECLARATORY JUDGMENT EXPENSES 

"Declaratory Judgment Expenses" shall mean all legal expenses, incurred in the representation of the Company in litigation brought to determine the Company's defense and/or indemnification obligations, that are allocable to any specific claim or loss applicable to Policies subject to this Agreement. In addition, the Company shall promptly notify the Reinsurer of any Declaratory Judgment Expenses subject to this Agreement. 

		
	B. 
	EXTRA CONTRACTUAL OBLIGATIONS 

		
	1. 
	EXTRACONTRACTUAL OBLIGATIONS are defined as those liabilities not covered under any other provision of this Agreement and which arise from the handling of any claim on business covered hereunder, such liabilities arising because of, but not limited to, the following: failure by the Company to settle within the Policy limit, or by reason of alleged or actual negligence, fraud or bad faith in rejecting an offer of settlement or in the preparation of the defense or in the trial of any action against its insured or in the preparation or prosecution of an appeal consequent upon such action. 

		
	2. 
	The date on which an Extra Contractual Obligation is incurred by the Company shall be deemed, in all circumstances, to be the date of the original accident, casualty, disaster or loss occurrence. 

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	3. 
	However, coverage hereunder as respects Extra Contractual Obligations shall not apply where the loss has been incurred due to the fraud of a member of the Board of Directors or a corporate officer of the Company acting individually or collectively or in collusion with any individual or corporation or any other organization or party involved in the presentation, defense or settlement of any claim covered hereunder.

 
		
	4. 
	Recoveries, collectibles or retention from any other form of insurance or reinsurance, including deductibles or self-insured retention which protect the Company against Extra Contractual Obligations, shall inure to the benefit of the Reinsurer and shall be deducted from the total amount of Extra Contractual Obligations, to the extent they are collected by the Company, for purposes of determining the loss hereunder. 

		
	5. 
	If any provision of this paragraph B. shall be rendered illegal or unenforceable by the laws, regulations or public policy of any jurisdiction, such provision shall be considered void in such jurisdiction, but this shall not affect the validity or enforceability of any other provision of this paragraph or the enforceability of such provision in any other jurisdiction. 

		
	C. 
	LOSS ADJUSTMENT EXPENSES 

"Loss Adjustment Expenses" shall mean all costs and expenses allocable to a specific claim that are incurred by the Company in the investigation, appraisal, adjustment, settlement, litigation, defense or appeal of a specific claim, regardless of how such costs and expenses are allocated for statutory reporting purposes, including but not limited to court costs and costs of supersedeas and appeal bonds, and including but not limited to 1. pre-judgment interest, unless included as part of the award or judgment; 2. post-judgment interest; 3. Declaratory Judgment Expenses; 4. monitoring counsel expenses; and 5.a pro rata share of salaries and expenses of Company field employees, and expenses of other Company employees who have been temporarily diverted from their normal and customary duties and assigned to the field adjustment of losses covered by this Contract. Loss Adjustment Expense does not include salaries and expenses of employees, other than (e) above, and office and other overhead expenses. 

		
	D. 
	LOSS IN EXCESS OF POLICY LIMITS 

		
	1. 
	"Loss in Excess of Policy Limits" is defined as loss in excess of the limit of the original Policy, such loss in excess of the limit having been incurred because of failure by the Company to settle within the Policy limit or by reason of alleged or actual negligence, fraud or bad faith in rejecting an offer of settlement or in the preparation of the defense or in the trial of any action against its insured or in the preparation or prosecution of an appeal consequent upon such action. 

		
	2. 
	However, this paragraph D. shall not apply where the loss has been incurred due to fraud by a member of the Board of Directors or a corporate officer of the Company acting individually or collectively or in collusion with any individual or corporation or any other organization or party involved in the presentation, defense or settlement of any claim covered hereunder. 

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	3. 
	For the purposes of this paragraph D., the word "loss" shall mean any amounts which the Company would have been contractually liable to pay had it not been for the limit of the original Policy. 

		
	4. 
	With respect to coverage provided under this paragraph D., recoveries from any insurance or reinsurance other than this Agreement, shall be deducted to arrive at the amount of the Company's Ultimate Net Loss. 

		
	E. 
	LOSS OCCURRENCE 

		
	1. 
	The term "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 or 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 windstorm, not otherwise excluded, hail, tornado, hurricane, cyclone, including ensuing collapse and water damage, all individual losses sustained by the Company occurring during any period of 120 consecutive hours arising out of and directly occasioned by 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. 

		
	c. 
	As regards earthquake (the epicentre of which need not necessarily be within the territorial confines referred to in the opening paragraph of this Article) 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 of 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), 

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which spread through trees, grassland or other vegetation, all individual losses sustained by the Company which commence during any period of 168 consecutive hours within a 150-mile radius of any one fixed point selected by the Company may be included in the Company's "Loss Occurrence." However, an individual loss subject to this subparagraph cannot be included in more than one "Loss Occurrence." 

		
	f. 
	As regards Terrorism, as defined in and not otherwise excluded by the Terrorism Exclusion Clause - Property Treaty Reinsurance - NMA2930c attached hereto, all individual losses sustained by the Company occurring during any period of 96 consecutive hours arising out of and directly occasioned by the same event. Should such an event of Terrorism give rise to other perils which, in an unbroken chain of causation, have occasioned the losses, the cause of the losses is understood to be that event of Terrorism. 

		
	2. 
	For all Loss Occurrences the Company may choose the date and time when any such period of consecutive hours commences provided that it is not 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 and provided that only one such period of 168 consecutive hours shall apply with respect to one event except for those Loss Occurrences referred to in a. above, where only one such period of 120 consecutive hours shall apply with respect to one event, and b. and f. above, where only one such period of 96 consecutive hours shall apply with respect to one event, regardless of the duration of the event. 

		
	3. 
	No individual losses occasioned by an event that would be covered by: 

		
	a. 
	a 120 hours clause may be included in any Loss Occurrence claimed under the 96 or 168 hours provision 

		
	b. 
	a 96 hours clause may be included in any Loss Occurrence claimed under the 120 or 168 hours provision 

		
	c. 
	a 168 hours clause may be included in any Loss Occurrence claimed under the 120 or 96 hours provision 

		
	F. 
	NET PREMIUMS WRITTEN 

The term Net Premiums Written shall mean gross premiums written less returns, allowances and reinsurances which inure to the benefit of the reinsurer. 

		
	G. 
	POLICIES 

The term "Policies" shall mean each of the Company's binders, policies and contracts of insurance on the business covered hereunder. 

		
	H. 
	RISK 

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The Company shall be the sole judge of what constitutes one Risk. 

		
	I. 
	SUBJECT EARNED PREMIUM 

"Subject Earned Premium" as used herein is equal to the sum of the Net Premiums Written on the business covered hereunder during the period under consideration, plus the unearned premium reserve as respects premiums in force at the beginning of such period, less the unearned premium reserve as respects premiums in force at the end of the period, said unearned premium is to be calculated on an actual daily basis or in accordance with the Company's methodology, as agreed. 

		
	J. 
	ULTIMATE NET LOSS 

		
	1. 
	The term "Ultimate Net Loss" shall mean the actual sum paid or payable by the Company in settlement of losses or liability after making deductions for all recoveries, including subrogation, salvages, and claims upon other reinsurances, whether collectible or not, which inure to the benefit of the Reinsurer under this Agreement, and shall include Loss Adjustment Expenses incurred by the Company; provided, however, that in the event of the insolvency of the Company, Ultimate Net Loss shall mean the amount of loss and Loss Adjustment Expenses for which the Company is liable, and payment by the Reinsurer shall be made to the liquidator, receiver, conservator or statutory successor of the Company in accordance with the provisions of Article XVIII Insolvency of this Agreement. 

		
	2. 
	The term "Ultimate Net Loss" shall include 90% of Loss In Excess of Policy Limits and 90% of Extra Contractual Obligations, as defined herein, but only as respects business covered under this Agreement. 

		
	3. 
	All recoveries, salvages or payments recovered or received subsequent to a loss settlement under this Agreement shall be applied as if recovered or received prior to the aforesaid settlement and all necessary adjustments to the loss settlement shall be made by the parties hereto. 

		
	4. 
	Nothing in this paragraph J. shall be construed to mean that losses are not recoverable hereunder until the Ultimate Net Loss of the Company has been ascertained. 

ARTICLE VII - EXCLUSIONS 

THIS AGREEMENT DOES NOT COVER:
 
		
	A. 
	THE FOLLOWING GENERAL CATEGORIES

 
		
	1. 
	All Lines of Business not specifically listed in Article I - Business Covered. 

		
	2. 
	Policies issued with a deductible of $100,000 or more; provided this exclusion shall not apply to Policies which customarily provide a percentage deductible on the perils of earthquake or windstorm. 

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	3. 
	Reinsurance assumed. 

		
	4.
	Ex-gratia Payments.

 
		
	5. 
	Loss or damage occasioned by war, invasion, revolution, bombardment, hostilities, acts of foreign enemies, civil war, rebellion, insurrection, military or usurped power, martial law, or confiscation by order of any government or public authority, but not excluding loss or damage which would be covered under a standard form of Policy containing a standard war exclusion clause.

 
		
	6. 
	Insolvency Funds as per the attached Insolvency Funds Exclusion Clause, which is made part of this Agreement. 

		
	7. 
	Pool, Syndicate and Association business as per the attached Pools, Associations and Syndicates Exclusion Clause, which is made part of this Agreement. 

		
	8. 
	Risks where the Total Insured Value, per risk, exceeds the figure specified as per the attached Total Insured Value Exclusion Clause, which is made part of this Agreement. 

		
	9. 
	Loss resulting from damage to overhead transmission and distribution lines, including supporting structures and anything attached thereto, of any public or private utility company, cable television or telecommunication company of any kind. This exclusion shall not apply to such overhead transmission and distribution lines, including supporting structures and anything attached thereto located on the premises of any policyholder or within 1,000 feet thereof. Nor shall this exclusion apply to utility service interruption or contingent business interruption losses for any policyholder, unless such policyholder is a public or private utility company, cable television or telecommunication company of any kind. 

		
	10. 
	Any statutory or regulatory fine or penalty imposed upon the Company on account of any unfair trade or claim practice, or for any other practice, action or inaction (actual or alleged), associated with, related to, or arising from the Company’s handling of any claim or business covered hereunder. 

		
	B. 
	THE FOLLOWING CLASSES OF BUSINESS AND TYPES OF RISKS 

		
	1. 
	Mortgage Impairment. 

		
	2. 
	Growing and/or standing crops. 

		
	3. 
	Mortality and Health covering birds, animals or fish. 

		
	4. 
	All onshore and offshore gas and oil drilling rigs. 

		
	5. 
	Petrochemical operations engaged in the production, refining or upgrading of petroleum or petroleum derivatives or natural gas. 

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	6. 
	Satellites. 

		
	7. 
	All railroad business. 

		
	8. 
	As respects Inland Marine business: 

		
	a. 
	Registered Mail and Armored Car Policies. 

		
	b. 
	Jeweler's Block Policies. 

		
	c. 
	Furrier's Customers Policies. 

		
	d. 
	Rolling Stock. 

		
	e. 
	Parcel Post when written to cover banks and financial institutions. 

		
	f. 
	Commercial Negative Film Insurance. 

		
	g. 
	Garment Contractors Policies. 

		
	h. 
	Mining Equipment while underground. 

		
	i. 
	Radio and Television Broadcasting Towers. 

		
	j. 
	Motor Truck Cargo Insurance written for common carriers operating beyond a radius of 200 miles. 

		
	C. 
	THE FOLLOWING PERILS 

		
	1. 
	Flood and/or Earthquake when written on a stand alone basis. 

		
	2. 
	Difference in Conditions, however styled. 

		
	3. 
	Pollution and Seepage as per the attached Pollution and Seepage Exclusion Clause, which is made part of this Agreement. 

		
	4. 
	Nuclear Incident Exclusion Clauses which are attached and made part of this Agreement: 

		
	a. 
	Nuclear Incident Exclusion Clause - Physical Damage - Reinsurance - U.S.A. 

		
	b. 
	Nuclear Incident Exclusion Clause - Reinsurance - No. 4. 

		
	5.        a. 
	Loss, damage or expense of whatsoever nature caused directly or indirectly by any of the following, regardless of any other cause or event contributing concurrently or in any other sequence to the loss: nuclear reaction or radiation, or radioactive contamination, however caused. 

		
	b. 
	However, if nuclear reaction or radiation, or radioactive contamination results in fire it is specifically agreed herewith that this Agreement will pay for such fire loss or damage subject to all of the terms, conditions and limitations of this Agreement. 

		
	c. 
	This exclusion shall not apply to loss, damage or expense originating from and occurring at risks using radioactive isotopes in any form where the nuclear exposure is not considered by the Company to be the primary hazard. 

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	6. 
	Terrorism, in accordance with the Terrorism Exclusion Clause - Property Treaty Reinsurance - NMA2930c attached to and forming part of this Agreement. 

		
	7. 
	Loss, damage or expense of whatsoever nature arising directly or indirectly from fungi, bacteria, including mold or mildew, and/or any mycotoxins, spores, scents or byproducts produced or released by fungi, regardless of any other cause, event, material, product and/or building component that contributed concurrently or in any sequence to that injury or damage. Such loss is excluded regardless of any other cause or event contributing concurrently or in any sequence to the loss. 

		
	8. 
	Named Windstorms. The term "Named Windstorm" shall mean a storm and all other atmospheric perils arising out of such storm that is identified and named as a Tropical Storm or Hurricane by the NHC. The duration of such Named Windstorm shall be deemed to be: 

		
	a. 
	Beginning at the time a Named Windstorm warning is issued by the NHC for any part of each state in which the Company writes the business reinsured hereunder; 

		
	b. 
	Continuing for the time period which the Named Windstorm conditions exist anywhere in such state; and 

		
	c. 
	Ending 72 hours following termination of the last Named Windstorm warning by NHC for any part of such state. 

"NHC" means the National Hurricane Center of the National Weather Service, operated by the National Oceanographic and Atmospheric Administration of the United States Government. 

ARTICLE VIII - SPECIAL ACCEPTANCE 

Risks which are beyond the terms, conditions or limitations of this Agreement may be submitted to the Reinsurer for special acceptance hereunder; and such risks, if accepted in writing by the Reinsurer, shall be subject to all of the terms, conditions and limitations of this Agreement, except as modified by the special acceptance. Premiums and losses derived from any special acceptance shall be included with other data for rating purposes under this Agreement. 

ARTICLE IX - REINSURANCE PREMIUM 

		
	A. 
	The Company shall pay to the Reinsurer a premium for the reinsurance provided hereunder at the rate set forth in Paragraph B. below. Such rate shall be applied to the Company's Subject Earned Premium for the term of this Agreement. 

		
	B. 
	A deposit premium shall be payable by the Company to the Reinsurer in four equal installments each due January 1, 2015, April 1, 2015, July 1, 2015 and October 1, 2015. As promptly as possible after the termination of this Agreement, the Company shall render a 

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statement to the Reinsurer showing the actual reinsurance premium due hereunder. If such premium calculation differs from the deposit previously paid, the debtor party shall pay the outstanding balance as soon as practicable. However, in no event shall the adjusted premium be less than the minimum premium set forth below. 

	
				
	Rate 
	Quarterly Premium 
	Minimum Premium 
	Deposit Premium 

	.4049% 
	$514,250 
	$1,645,600 
	$2,057,000 

		
	C. 
	In respect of Paragraph B. above: 

		
	1. 
	All statements shall be sent to the Reinsurer at: 

		
	a. 
	E-Mail/Word, Excel, PDF, or TIF Formats, or other scanned documents: 

TAPCAM_DirectArmonk@swissre.com, or 

		
	b. 
	Standard Mail: 

Swiss Reinsurance America Corporation 
Technical Accounting Department 
175 King Street 
Armonk, NY 10504 

		
	2. 
	All checks and supporting documentation shall be sent to the Reinsurer through one of the options set forth below and shall identify the applicable Reinsurer Agreement Number(s): 

		
	a. 
	WIRE TRANSFER 

		
	(i) 
	All wires shall be sent to: 

The Bank of New York 
1 Wall Street 
New York, NY 10286 
Account Name: Swiss Reinsurance America Corporation 
Account Number: 8900489197 
ABA Number: 021000018 
SWIFT: IRVTUS3N 

		
	(ii) 
	All supporting documentation shall be sent to: 

		
	(a) 
	E-Mail/Word, Excel, PDF, or TIF Formats, or other scanned documents: 

TAPCAM_DirectArmonk@swissre.com 

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	(b) 
	Swiss Reinsurance America Corporation 

Technical Accounting Department 
175 King Street 
Armonk, NY 10504 

		
	b. 
	COURIER OR OVERNIGHT CARRIER 

Both checks and supporting documentation shall be sent to: 

Swiss Reinsurance America Corporation C/O BONY Mellon 
500 Ross Street - 154-0455 
Pittsburgh, PA 15262 
Attn: Wholesale Lockbox 
Re: Lockbox 392052 

		
	c. 
	LOCK BOX 

Both checks and supporting documentation shall be sent to: 

Swiss Re America 
P.O. Box 392052 
Pittsburgh, PA 15251-9052 

ARTICLE X - CLAIMS 

		
	A. 
	The Company shall promptly notify the Reinsurer of each Loss Occurrence which, in the opinion of the Company, may involve the reinsurance provided hereunder and of all subsequent developments relating thereto, stating the amount claimed and estimate of the Company's Ultimate Net Loss and Loss Adjustment Expenses, by Line of Business. 

		
	B. 
	The Company shall have the responsibility to investigate, defend or negotiate settlements of all claims and lawsuits related to Policies written by the Company and reinsured under this Agreement. 

ARTICLE XI - LATE PAYMENTS
 
		
	A. 
	The provisions of this Article shall not be implemented unless specifically invoked, in writing, by one of the parties to this Agreement.

 
		
	B. 
	In the event any premium, loss or other payment due either party is not received by that party by the payment due date, the party to whom payment is due may, by notifying the debtor party in writing, require it 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: 

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

		
	2. 
	1/365th of the one-month LIBOR on the first business day of the month for which the calculation is made, plus 1%; times 

3. The amount past due, including accrued interest. 

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

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

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

		
	2. 
	Any claim or loss payment due the Company hereunder shall be deemed due 15 business days after the proof of loss or demand for payment is received by the Reinsurer. If such loss or claim payment is not received within the 15 business days, interest will accrue on the payment or amount overdue in accordance with paragraph B of this Article, from the date the proof of loss or demand for payment was received by the Reinsurer. Notwithstanding the foregoing, if the Reinsurer finds the information contained in the Company's demand for payment is insufficient or not in accordance with the conditions of this Agreement, then it may request from the Company, on or before the due date set forth in this subparagraph 2, all additional information necessary to validate its claim. In such case, the payment due date set forth in this paragraph shall be deemed to be 15 business days after the Reinsurer has received the requested additional information. 

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

		
	D. 
	For purposes of interest calculations only, amounts due hereunder shall be deemed paid upon receipt by the party to which such debt is owed. 

		
	E. 
	Nothing herein shall be construed as limiting or prohibiting the Reinsurer from contesting the validity of any claim, or from participating in the defense of any claim or suit, or prohibiting either party from contesting the validity of any payment or from initiating any dispute resolution proceeding in accordance with the provisions of this agreement. If the debtor party prevails 

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in such proceeding, then any interest penalties due hereunder on the amount in dispute shall be null and void. If the debtor party loses in such proceeding, then the interest penalty on the amount determined to be due hereunder shall be calculated in accordance with the provisions set forth above unless otherwise determined by such proceeding. If a debtor party advances payment of any amount it is contesting, and proves to be correct in its contestation, either in whole or in part, the other party shall reimburse the debtor party for any such excess payment made plus interest on the excess amount calculated in accordance with this Article. 

ARTICLE XII - SALVAGE AND SUBROGATION 

		
	A. 
	In the event of the payment of any indemnity by the Reinsurer under this Agreement, the Reinsurer shall be subrogated, to the extent of such payment, to all of the rights of the Company against any person or entity legally responsible for damages of the loss. The Company agrees to enforce such rights; but, in case the Company refuses or neglects to do so, the Reinsurer is hereby authorized and empowered to bring any appropriate action in the name of the Company or their policyholders or otherwise to enforce such rights. 

		
	B. 
	From any amount recovered by subrogation, salvage or other means, there shall first be deducted the expenses incurred in effecting the recovery. The balance shall then be used to reimburse the excess carriers in the inverse order to that in which their respective liabilities attached, before being used to reimburse the Company for its primary loss. 

ARTICLE XIII - ACCESS TO RECORDS 

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

ARTICLE XIV - TAXES 

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

ARTICLE XV - FOREIGN ACCOUNT TAX COMPLIANCE ACT 

		
	A. 
	On or before the later of (i) the date upon which withholding agents generally are required to begin withholding payments under the foreign account tax compliance provisions of the Hiring Incentives to Restore Employment Act of 2010, including any related regulations of the Internal Revenue Service ("FATCA"), or (ii) five (5) business days prior to the first premium cession due date hereunder, the Reinsurer shall provide to the Company the FATCA required documentation (including a valid W-8BENE, W-9 or such other documentation approved for 

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use by the United States Internal Revenue Service) confirming that the Reinsurer is not subject to any withholding pursuant to FATCA. 

		
	B. 
	If the Reinsurer fails to provide the Company with such FATCA-required documentation in accordance with Paragraph A., above, the Company shall withhold from such Reinsurer 30% of the reinsurance premium otherwise due such Reinsurer with respect to United States risks for payment to the United States Internal Revenue Service in accordance with FATCA. The remaining reinsurance premium shall be ceded to the Reinsurer. 

		
	C. 
	In the event of any return of premium becoming due hereunder, the Reinsurer will deduct the applicable percentage from the return premium payable hereon, and cooperate with the reasonable requests of the Company to pursue recovery of such withholding from the United States Government. 

ARTICLE XVI - OFFSET 

Each party to this Agreement together with their successors or assigns shall have and may exercise, at any time, the right to offset any balance or balances due the other (or, if more than one, any other). Such offset may include balances due under this Agreement and any other agreements heretofore or hereafter entered into between the parties regardless of whether such balances arise from premiums, losses or otherwise, and regardless of capacity of any party, whether as assuming insurer and/or ceding insurer, under the various agreements involved, provided however, that in the event of insolvency of a party hereto, offsets shall only be allowed in accordance with the provisions of Section 7427 of the Insurance Law of the State of New York to the extent such statute or any other applicable law, statute or regulation governing such offset shall apply. 

ARTICLE XVII - DISPUTE RESOLUTION 

Part I - Choice Of Law And Forum 

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

Part II - Mediation 

If a dispute between the Company and the Reinsurer, arising out of the provisions of this Agreement or concerning its interpretation or validity and whether arising before or after termination of this Agreement has not been settled through negotiation, both parties agree to try in good faith to settle such dispute by nonbinding mediation, before resorting to arbitration. 

Part III - Arbitration 

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

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	B. 
	Composition of Panel - Unless the parties agree upon a single arbitrator within 15 days after the receipt of a notice of intention to arbitrate, all disputes shall be submitted to an arbitration panel composed of two arbitrators and an umpire chosen in accordance with Paragraph C. hereof. 

		
	C. 
	Appointment of Arbitrators - The members of the arbitration panel shall be chosen from disinterested persons with at least 10 years experience in the insurance and reinsurance business. Unless a single arbitrator is agreed upon, the party requesting arbitration (hereinafter referred to as the "claimant") shall appoint an arbitrator and give written notice thereof by certified mail or by a courier service producing evidence of receipt by the receiving party, to the other party (hereinafter referred to as the "respondent") together with its notice of intention to arbitrate. Within 30 days after receiving such notice, the respondent shall also appoint an arbitrator and notify the claimant thereof by certified mail or by a courier service producing evidence of receipt by the receiving party. Before instituting a hearing, the two arbitrators so appointed shall choose an umpire. If, within 20 days after the appointment of the arbitrator chosen by the respondent, the two arbitrators fail to agree upon the appointment of an umpire, each of them shall nominate three individuals to serve as umpire, of whom the other shall decline two and the umpire shall be chosen from the remaining two by drawing lots. The name of the individual first drawn shall be the umpire. 

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

 
		
	E. 
	Submission of Dispute to Panel - Within 30 days after the notice of appointment of all arbitrators, the panel shall meet, and determine a timely period for discovery, discovery procedures and schedules for hearings. 

		
	F. 
	Procedure Governing Arbitration - All proceedings before the panel shall be informal and the panel shall not be bound by the formal rules of evidence. The panel shall have the power to fix all procedural rules relating to the arbitration proceeding. In reaching any decision, the panel shall give due consideration to the customs and usages of the insurance and reinsurance business. 

		
	G. 
	Arbitration Award - The arbitration panel shall render its decision within 60 days after termination of the proceeding, which decision shall be in writing, stating the reasons therefor. The decision of the majority of the panel shall be final and binding on the parties to the proceeding. In no event, however, will the panel be authorized to award punitive, exemplary or consequential damages of whatsoever nature in connection with any arbitration proceeding concerning this Agreement. 

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

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ARTICLE XVIII - INSOLVENCY 

		
	A. 
	In the event of insolvency of the Company, the reinsurance provided by this Agreement shall be payable by the Reinsurer on the basis of the liability of the Company as respects Policies covered hereunder, without diminution because of such insolvency, directly to the Company or its liquidator, receiver, conservator or statutory successor except as provided in Sections 4118(a)(1)(A) and 1114(c) of the New York Insurance Law or as otherwise provided under applicable law, statute or regulation. 

		
	B. 
	The Reinsurer shall be given written notice of the pendency of each claim or loss which may involve the reinsurance provided by this Agreement within a reasonable time after such claim or loss is filed in the insolvency proceedings. The Reinsurer shall have the right to investigate each such claim or loss and interpose, at its own expense, in the proceedings where the claim or loss is to be adjudicated, any defense which it may deem available to the Company, its liquidator, receiver, conservator or statutory successor. The expense thus incurred by the Reinsurer shall be chargeable, subject to court approval, against the insolvent Company as part of the expense of liquidation to the extent of a proportionate share of the benefit which may accrue to the Company solely as a result of the defense undertaken by the Reinsurer.

 
		
	C. 
	In addition to the offset provisions set forth in Article XVI Offset, any debts or credits, liquidated or unliquidated, in favor of or against either party on the date of the receivership or liquidation order (except where the obligation was purchased by or transferred to be used as an offset) are deemed mutual debts or credits and shall be set off with the balance only to be allowed or paid. Although such claim on the part of either party against the other may be unliquidated or undetermined in amount on the date of the entry of the receivership or liquidation order, such claim will be regarded as being in existence as of such date and any claims then in existence and held by the other party may be offset against it. 

		
	D. 
	Nothing contained in this Article is intended to change the relationship or status of the parties to this Agreement or to enlarge upon the rights or obligations of either party hereunder except as provided herein. 

ARTICLE XIX - CONFIDENTIALITY 

		
	A. 
	The Reinsurer hereby acknowledges that the terms and conditions of this Contract, documents, information and data provided to it by the Company, whether directly or through an authorized agent, during the course of negotiation, administration, and performance of this Contract (hereinafter referred to as 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 available or have become publicly available through no unauthorized act of the Reinsurer; 

		
	2. 
	Have been rightfully received from a third person without obligation of confidentiality; or 

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	3. 
	Were known by the Reinsurer prior to the placement of this Contract without an obligation of confidentiality. 

		
	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: 

		
	1. 
	When required by retrocessionaires subject to the business ceded to this Contract; 

		
	2. 
	When required by regulators performing an audit of the Reinsurer’s records and/or financial condition; 

		
	3. 
	When required by external auditors performing an audit of the Reinsurer’s records in the normal course of business; or 

		
	4. 
	When required by courts or arbitrators in connection with an actual or potential dispute hereunder. 

		
	5. 
	When required by legal counsel or third party service providers engaged to provide services for the Reinsurer and subject to a confidentiality agreement no less restrictive than this article. 

Further, the Reinsurer agrees not to use any confidential information for any purpose not related to its internal reinsurance operations, the performance of its obligations or enforcement of its rights under this Contract. 

		
	C. 
	Notwithstanding the above, in the event the Reinsurer is required by court order, other legal process or any regulatory authority to release or disclose any or all of the confidential information, the Reinsurer agrees to provide the Company with written notice of same at least 10 days prior to such release or disclosure and to use its best efforts to assist the Company in maintaining the confidentiality provided for in this Article. 

		
	D. 
	The provisions of this Article shall extend to the officers, directors, shareholders and employees of the Reinsurer and its affiliates, and shall be binding upon their successors and assigns. 

ARTICLE XX - ERRORS AND OMISSIONS 

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

ARTICLE XXI- INTERNATIONAL TRADE CONTROLS 

In no event shall the reinsurer be deemed to provide cover nor shall the reinsurer be liable to pay any claim or provide any benefit hereunder to the extent that the provision of such cover, payment of such claim or provision of such benefit would expose the reinsurer to any sanction, prohibition 

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or restriction under united nations resolutions or the trade or economic sanctions, laws or regulations of any jurisdiction applicable to the reinsurer. 

ARTICLE XXII - ENTIRE AGREEMENT 

		
	A. 
	This Agreement and any related special acceptance(s), shall constitute the entire agreement between the parties hereto with respect to the business reinsured hereunder and there are no understandings between the parties other than as expressed in this Agreement. 

		
	B. 
	Any change to or modification of this Agreement shall be null and void unless made by an addendum signed by both parties. 

ARTICLE XXIII - LIABILITY OF THE REINSURER 

		
	A. 
	The liability of the Reinsurer shall follow that of the Company in every case and be subject in all respects to all of the general and specific stipulations, clauses, waivers, interpretations and modifications of the Company’s Policies and any endorsements thereto. However, in no event shall this be construed in any way to provide coverage outside the terms and conditions set forth in this Agreement. 

		
	B. 
	Nothing herein shall in any manner create any obligations or establish any rights against the reinsurer in favor of any third party or any persons not parties to this Agreement. 

ARTICLE XXIV - NET RETAINED LINES 

		
	A. 
	This Agreement applies only to that portion of any Policy which the Company retains net for its own account (prior to deduction of any reinsurance which inures solely to the benefit of the Company), and in calculating the amount of any loss hereunder and also in computing the amount or amounts in excess of which this Agreement attaches, only loss or losses in respect of that portion of any Policy which the Company retains net for its own account shall be included. 

		
	B. 
	The amount of the Reinsurer’s liability hereunder in respect of any loss or losses shall not be increased by reason of the inability of the company to collect from any other reinsurer(s), whether specific or general, any amounts which may have become due from such reinsurer(s), whether such inability arises from the insolvency of such other reinsurer(s) or otherwise. 

ARTICLE XXV- AMENDMENTS 

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

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the following dates: 

UNITED PROPERTY & CASUALTY INSURANCE COMPANY 

___________________________________      ______________________________________ 
Signature                         Signature 

___________________________________     ______________________________________ 
Print Name                         Print Name 

Title:_______________________________     Title:__________________________________ 

Date:_______________________________     Date:__________________________________ 

SWISS REINSURANCE AMERICA CORPORATION 

Digitally signed by                     Digitally signed by
Andrew Robertson                     matt_junge@swssre.com
Date: 2015.01.20                    Date: 2015.01.16
09:15:13 - 05'00'                    15:53:22 - 06'00'

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SUPPLEMENT TO THE ATTACHMENTS 

DEFINITION OF IDENTIFICATION TERMS USED WITHIN THE ATTACHMENTS 

		
	A. 
	Wherever the term "Company" or "Reinsured" or "Reassured" or whatever other term is used to designate the reinsured company or companies within the various attachments to the reinsurance agreement, the term shall be understood to mean Company or Reinsured or Reassured or whatever other term is used in the attached reinsurance agreement to designate the reinsured company or companies. 

		
	B. 
	Wherever the term "Agreement" or "Contract" or "Policy" or whatever other term is used to designate the attached reinsurance agreement within the various attachments to the reinsurance agreement, the term shall be understood to mean Agreement or Contract or Policy or whatever other term is used to designate the attached reinsurance agreement.

 
		
	C. 
	Wherever the term "Reinsurer" or "Reinsurers" or "Underwriters" or whatever other term is used to designate the reinsurer or reinsurers in the various attachments to the reinsurance agreement, the term shall be understood to mean Reinsurer or Reinsurers or Underwriters or whatever other term is used to designate the reinsuring company or companies. 

________________________________________________________________________________________________________________________________________________________

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INSOLVENCY FUNDS EXCLUSION CLAUSE 

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

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POOLS, ASSOCIATIONS AND 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 

It is agreed that 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 the following Pools, Associations or Syndicates, whether by way of insurance or reinsurance is excluded hereunder: 

Industrial Risk Insurers (successor to Factory Insurance Association and Oil Insurance Association); Associated Factory Mutuals. 

Any Pool, Association or Syndicate formed for the purpose of writing Oil, Gas or Petro-Chemical Plants and/or Oil or Gas Drilling Rigs. 

United States Aircraft Insurance Group, Canadian Aircraft Insurance Group, Associated Aviation Underwriters, American Aviation Underwriters. 

SECTION B does not apply: 

(a) Where the Total Insured Value over all interests of the risk in question is less than $350,000,000. 

(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.

-1-

(d) To risks as follows: Offices, Hotels, Apartments, Hospitals, Educational Establishments, Public Utilities (other than Railroad Schedules) and Builders Risks on the classes of risks specified in this subsection (d) only. 

-2-

SECTION C 

NEVERTHELESS the Reinsurer specifically agrees that Liability accruing to the Company from its participation in: 

(a) The following so-called "Coastal Pools":
 
ALABAMA INSURANCE UNDERWRITING ASSOCIATION 
FLORIDA WINDSTORM UNDERWRITING ASSOCIATION 
LOUISIANA INSURANCE UNDERWRITING ASSOCIATION 
MISSISSIPPI WINDSTORM INSURANCE UNDERWRITING ASSOCIATION 
NORTH CAROLINA INSURANCE UNDERWRITING ASSOCIATION 
SOUTH CAROLINA WINDSTORM AND HAIL UNDERWRITING ASSOCIATION 
TEXAS CATASTROPHE PROPERTY INSURANCE ASSOCIATION 

and 

(b) All "Fair Plan" and "Rural Risk Plan" Business 

for all perils otherwise protected hereunder will not be excluded, except however, that this reinsurance does not include any increase in such liability resulting from: 

(1) The inability for any other participant in such "Coastal Pool" and/or "Fair Plan" and/or "Rural Risk Plan" to meet its liability. 

(2) Any Claim against such "Coastal Pool" and/or "Fair Plan" and/or "Rural Risk Plan" 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 Insolvency Funds Exclusion Clause incorporated in this agreement). 

-3-

TOTAL INSURED VALUE EXCLUSION CLAUSE 

It is the mutual intention of the parties to exclude risks, other than Offices, Hotels, Apartments, Hospitals, Educational Establishments, Public Utilities (except Railroad schedules) and Builders Risk on the above classes, where at the time of the cession, the Total Insured Value over all interests exceeds $350,000,000. However, the Company shall be protected hereunder, subject to the other terms and conditions of this Agreement, if subsequently to cession being made the Company becomes acquainted with the true facts of the case and discovers that the mutual intention has been inadvertently breached, the Company shall at the first opportunity, and certainly by next anniversary of the original policy, exclude the risk in question.

 
It is agreed that this mutual intention does not apply to Contingent Business Interruption or to interest traditionally underwritten as Inland Marine or to Stock and/or Contents written on a blanket basis except where the Company is aware that the Total Insured Value of $350,000,000 is already exceeded for buildings, machinery, equipment and direct use and occupancy at the key location. 

It is understood and agreed that this Clause shall not apply hereunder where the Company writes 100% of the risk. 

Notwithstanding anything contained herein to the contrary, it is the mutual intention of the parties in respect of bridges and tunnels to exclude such risks where the Total Insured Value over all interests exceeds $350,000,000. 

POLLUTION AND SEEPAGE EXCLUSION CLAUSE 

This Reinsurance does not apply to: 

		
	1. 
	Pollution, seepage, contamination or environmental impairment (hereinafter collectively referred to as "pollution") insurances, however styled; 

		
	2. 
	Loss or damage caused directly or indirectly by pollution, unless said loss or damage follows as a result of a loss caused directly by a peril covered hereunder; 

		
	3. 
	Expenses resulting from any governmental direction or request that material present in or part of or utilized on an insured's property be removed or modified, except as provided in 5. below; 

		
	4. 
	Expenses incurred in testing for and/or monitoring pollutants; 

		
	5. 
	Expenses incurred in removing debris, unless (A) the debris results from a loss caused directly by a peril covered hereunder, and (B) the debris to be removed is itself covered hereunder, and (C) the debris is on the insured's premises, subject, however, to a limit of $5,000 plus 25% of (i) the property damage loss, any risk, any one location, any one original insured, and (ii) any deductible applicable to the loss; 

		
	6. 
	Expenses incurred to extract pollutants from land or water at the insured's premises unless (A) the release, discharge, or dispersal of pollutants results from a loss caused directly by a peril covered hereunder, and (B) such expenses shall not exceed $10,000; 

		
	7. 
	Loss of income due to any increased period of time required to resume operations resulting from enforcement of any law regulating the prevention, control, repair, clean-up or restoration of environmental damage; 

		
	8. 
	Claims under 5. and/or 6. above, unless notice thereof is given to the Company by the insured within 180 days after the date of the loss occurrence to which such claims relate. 

"Pollutants" means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. 

Where no pollution exclusion has been accepted or approved by an insurance regulatory authority for use in a policy that is subject to this Agreement or where a pollution exclusion that has been used in a policy is overturned, either in whole or in part, by a court having jurisdiction, there shall be no recovery for pollution under this Agreement unless said pollution loss or damage follows as a result of a loss caused directly by a peril covered hereunder. 

-1-

Nothing herein shall be deemed to extend the coverage afforded by this reinsurance to property or perils specifically excluded or not covered under the terms and conditions of the original policy involved. 

-2-

NUCLEAR INCIDENT EXCLUSION CLAUSE - PHYSICAL DAMAGE - REINSURANCE - U.S.A. 

N.M.A. 1119 

		
	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 operation of paragraphs 1. and 2. of this Clause, 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 the Reassured does not have knowledge of such nuclear reactor power plant or nuclear installation, or 

(b) where the 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 

N.M.A. 1119                        -1-

radioactive contamination exclusion provision has been approved by the Governmental Authority having jurisdiction thereof. 

		
	4. 
	Without in any way restricting the operation of paragraphs 1., 2. and 3. of this Clause, 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 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 to it by 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. 

N.M.A. 1119                        -2-

NUCLEAR INCIDENT EXCLUSION CLAUSE - REINSURANCE - NO. 4 

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

		
	2. 
	Without in any way restricting the operations of Nuclear Incident Exclusion Clauses, - Liability, - Physical Damage, - Boiler and Machinery and paragraph 1. of this Clause, it is understood and agreed that for all purposes of the reinsurance assumed by the Reinsurer from the Reinsured, all original insurance policies or contracts of the Reinsured (new, renewal and replacement) shall be deemed to include the applicable existing Nuclear Clause and/or Nuclear Exclusion Clause(s) in effect at the time and any subsequent revisions thereto as agreed upon and approved by the Insurance Industry and/or a qualified Advisory or Rating Bureau. 

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TERRORISM
EXCLUSION 

(Property Treaty
Reinsurance) 

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.
 
NMA 2930c 
22/11/02 

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