Document:

<PAGE>   1
                                                                    EXHIBIT 10.5

                        MICOA/SCW SALES AGENCY AGREEMENT
                (MEDICAL PROFESSIONAL LIABILITY - MICHIGAN ONLY)
                                 JANUARY 1, 2000

This Agreement is made between Mutual Insurance Corporation of America, a
Michigan corporation ("MICOA"), and SCW Agency Group, Inc., a Michigan
corporation ("SCW" or "Agent").

                                    RECITALS

1.   MICOA is engaged in the business of providing insurance, including the
     types of professional liability insurance listed on the attached Commission
     Schedule; and,

2.   SCW is engaged in the business of insurance sales as a licensed Michigan
     insurance agent.

NOW, THEREFORE, in consideration of the mutual promises and undertakings set
forth herein, the parties agree as follows:

A.   AUTHORITY AND RESPONSIBILITY OF AGENT

     Subject to the requirements imposed by law, the underwriting rules and
     procedures of MICOA, and the terms of this Agreement, MICOA confirms the
     appointment of SCW as a nonexclusive professional liability sales agent in
     the State of Michigan, for those types of professional liability insurance
     listed on the attached Commission Schedule. SCW's duties include the
     following:

     1.   Solicitation, receipt, and transmittal to MICOA of proposals for
          insurance contracts of the types specified on the attached Commission
          Schedule, and assistance in marketing these insurance products.

     2.   Production and delivery of certificates of insurance and written
          binders in accordance with MICOA underwriting requirements. SCW is not
          authorized to accept or bind any risk or to otherwise obligate MICOA
          without specific authority from MICOA.

     3.   The usual and customary services, including marketing services, of an
          agent on policies placed with MICOA subject to the following:

          -    MICOA will not be responsible for Agent's expenses related to
               Michigan sales, including but not limited to salaries, benefits,
               bonuses, rent, transportation, employee hire or solicitor's fees,
               postage, telephone, advertising, licensing fees or any other
               expenses unless agreed upon in writing.
<PAGE>   2

     4.   To promptly report all claims and losses of which Agent has knowledge,
          and properly notify MICOA when Agent receives notice of the
          commencement of any related legal action. Agent shall refrain from
          admitting or denying liability on the part of MICOA in connection with
          any claim or lawsuit.

     5.   Appoint subagents to distribute MICOA's products and services as
          appropriate in the State of Michigan, provided that such appointments
          are done with prior notice to MICOA and upon appointment by MICOA as a
          licensed agent. Agent shall oversee the activities of any subagents
          appointed by it and shall apprise MICOA of the names, addresses and
          duration of any appointments activated by Agent. Agent shall instruct
          and oversee any subagents so as to assure compliance with the terms
          and requirements of this Agreement. The following three agencies have
          already been appointed by MICOA as subagents:

          -    City Insurance Agency, Inc., Marquette, Michigan
          -    Domzalski Agency, St. Clair Shores, Michigan
          -    Fawcett-Dopke Agency, Inc., Traverse City, Michigan
          -    Insurance by Burley, Petoskey, Michigan
          -    Korotkin, Schlesinger & Associates, Inc., Southfield,
               Michigan

          The terms of the agreements with the subagents will govern the
          compensation paid to the subagents. If MICOA has agreed or does agree
          in writing, in connection with a subagency agreement, to pay SCW at a
          different commission rate than is provided herein, or to make other
          payments in relation to a subagent (including but not limited to
          payments upon termination of the subagency relationship), then those
          payment terms will remain effective in connection with that subagency
          agreement. Except as otherwise agreed to by MICOA in connection with a
          subagency agreement, SCW will be responsible for compensating the
          subagents from the commissions SCW receives pursuant to this
          Agreement.

B.   COMMISSIONS

     1.   Commissions shall be paid to SCW by MICOA in accordance with the
          attached Commission Schedule of June 26, 1999, which is hereby
          reiterated and incorporated by attachment; and which in pertinent part
          reconfirms 1999 commissions, the Production Bonus Schedule and the
          Three Year Schedule of Commissions(1). The Three Year Agency
          Commission Schedule and Production Bonus Schedule (Incentive Plan) are
          attached. The Incentive Plan is subject to annual change at MICOA's
          sole discretion. All other aspects of the June 26, 1999 renewal
          document

--------------------

          (1) The reference contained on page 2 of the 6/26/99 document to
          Paragraph G of this Agreement shall be deemed changed to Paragraph H.

                                       2
<PAGE>   3

          shall remain in force during the effectiveness of this Agreement
          unless otherwise agreed in writing by the Parties. Commissions may be
          revised by mutual agreement between the parties, or by MICOA after
          giving Agent 120 days' advance notice of the proposed changes and
          effective date. Any return commission otherwise due MICOA under this
          Agreement will be calculated at the rate initially applicable.

     2.   Commissions on premiums shall be paid to Agent by the 15th of the
          month following the month in which such premiums are received and
          recorded by MICOA, subject to deduction of any return commissions due
          from the Agent.

     3.   For production purposes, new business shall be defined as all new
          policies or policies where there is a break in continuous coverage of
          at least one day. Extended discovery period (tails) will be treated as
          renewal premium.

     4.   Commissions on policies of less than one year will not be annualized,
          but rather will be paid for the actual policy period.

     5.   Agent agrees to return commissions on policy cancellations or
          reductions at the same rate at which such commissions were originally
          paid. The payment of commissions by MICOA to Agent is contingent upon
          Agent being legally licensed. Any revocation or cancellation of
          Agent's license is grounds for nonpayment of commissions.

C.   MICOA BILLED POLICIES

     For professional liability business covered by the attached Commission
     Schedule which is placed with MICOA and billed directly to the
     policyholder, the following shall apply:

     1.   The processing and submittal of all such business shall be subject to
          provisions outlined in MICOA's written requirements and forms as they
          may be implemented from time to time.

     2.   If Agent receives any premium payments, Agent shall submit the
          appropriate premium to MICOA without deduction of commission.

     3.   Agent's name shall appear on all policies, premium notices,
          endorsements, and cancellation notices to policyholders. Copies of all
          such items sent to policyholders shall be sent at the same time to the
          Agent.

                                       3

<PAGE>   4

     4.   MICOA will provide Agent a monthly accounting of all transactions
          using industry standards, including name, policy number, effective
          date, premium and commission.

     5.   MICOA will furnish Agent with a list of all policies which are due to
          renew, at least 90 days in advance of expiration. Such list will also
          include current premium and a schedule of all credits or debits
          currently applied to the policy, as well as any proposed changes to
          the renewal policy.

D.   POLICY CANCELLATION

     Cancellation of any policy in force, when requested by the Agent, will be
     honored by MICOA, except for those policies MICOA is not otherwise
     permitted to cancel.

E.   NONEXCLUSIVE APPOINTMENT OF AGENT

     MICOA may appoint other agents to sell its professional liability products
     in Michigan. SCW is accordingly a nonexclusive agent for MICOA. Agent also
     agrees not to sell or sign a contract to sell any professional liability
     products offered in competition with MICOA in Michigan by any other carrier
     without the written consent of MICOA, except as specifically provided in
     this paragraph. SCW agrees to submit all covered professional liability
     risks to MICOA for MICOA's underwriting evaluation and policy premium
     quotation. If MICOA declines a risk or MICOA's premium quotation is
     significantly higher than that quoted by another insurance company, then
     SCW, following consultation with MICOA, may place the risk with that other
     insurance company. SCW agrees that MICOA may review placements made by SCW
     with other insurance carriers on a quarterly basis.

     MICOA Agrees to continue its practice of not accepting agent of record
     letters or their equivalent regarding any Michigan professional liability
     business.. Nor will MICOA provide that such business written by SCW or any
     other agent be transferred from the writing agency by MICOA. All such MICOA
     business written by SCW shall remain with SCW, unless otherwise agreed by
     SCW in writing.

F.   OWNERSHIP AND SALE OF EXPIRATIONS

     1.   OWNERSHIP. SCW shall own all expirations for business written pursuant
          to this Agreement at and after January 1, 2000. As to other years of
          MICOA Michigan professional liability business already written by SCW,
          expiration ownership shall vest in SCW as follows:

          Effective December 31 of each year specified under "Year" below,
          expirations for all such MICOA policies written through SCW during the
          years listed under "Policy Years" shall become the property of SCW:

                                       4
<PAGE>   5
<TABLE>
<CAPTION>
       YEAR                               POLICY YEARS
       ----------------------------------------------------
<S>                                       <C>
       2000                               1997 through 1999
       2001                               1994 through 1996
       2002                               1991 through 1993
</TABLE>

          There shall be no ownership or sales rights granted SCW under any
          circumstances for MICOA Michigan professional liability business SCW
          wrote prior to 1991.

     2.   SALES OF ALL VESTED EXPIRATIONS. Beginning January 1,2003 SCW may sell
          all of the expirations vested pursuant to F,1, above, subject to
          MICOA's right of first refusal. SCW shall notify MICOA in writing of
          its desire to sell all of the expirations and MICOA shall have 45
          business days to agree to purchase all such expirations. The price
          paid by MICOA shall be fixed at 150% of the commission income SCW
          earned for all MICOA Michigan professional liability business SCW sold
          from January 1, 1991 through December 31, 1999. MICOA shall be allowed
          to verify the amount of such commissions from an audit of SCW's
          records paid for by MICOA upon request.

     3.   SALES OF LESS THAN ALL EXPIRATIONS. For any proposed sales of less
          than all vested expirations at and after January 1, 2003, MICOA's
          right of first refusal shall apply, and the 150% commission pricing
          shall be applied for the specific policy expirations and years to be
          sold.

     4.   PAYMENT. Amounts due SCW under F,2 and 3 above may be paid in one lump
          sum or in equal quarterly installments over no less than two years at
          MICOA's option.

     5.   TERMINATION PRIOR TO COMPLETE VESTING. If this Agreement is terminated
          prior to December 31, 2002, expirations for any unvested periods of
          remaining Policy years between 1991 and 1999 shall vest in SCW at the
          times designated in F, 1, above, unless the termination is due to :
          SCW's loss of license, fraud, willful misrepresentation, abandonment
          of this Agreement or failure by SCW to cure a material breach within
          30 days after written notice of such breach.

G.   AGENT'S ERRORS AND OMISSION INSURANCE

     Agent will maintain valid errors and omissions insurance, with minimum
     limits of $1,000,000 per incident, which shall contain terms acceptable to
     MICOA covering Agent's solicitors and employees. Agent shall provide MICOA
     a copy of the policy upon request.

                                       5
<PAGE>   6

H    TERMINATION OF AGREEMENT

     1.   This Agreement may be terminated by MICOA or SCW upon giving at least
          120 advance written notice to the other party. This Agreement may
          nevertheless be terminated immediately in the event of: loss of
          license; fraud; willful misrepresentation; abandonment of this
          Agreement or failure by a Party to cure a material breach within 30
          days after written notice of said breach; provided that, if this
          Agreement is terminated by MICOA with less advance notice than is
          required to terminate the subagency agreements, those subagency
          agreements will continue to be honored by MICOA until they are
          properly terminated, and MICOA will pay the subagents the compensation
          they are entitled to receive under the subagency agreements.

     2.   All MICOA written or recorded information in the possession of SCW
          from time to time as a result of this Agreement, including insured
          listings, data, and expiration lists, are and shall be continually
          owned by MICOA, unless they have become the property of SCW pursuant
          to Paragraph F, above. All such information will be kept
          confidentially by SCW, regarded as proprietary to MICOA, and used only
          as necessary to perform this Agreement. Copies of any such information
          will be made available to MICOA at any time upon reasonable request.
          Upon termination of this Agreement, all originals and copies of such
          information will be returned immediately to MICOA upon its direction,
          or will be destroyed and confirmed destroyed by SCW upon MICOA's
          request.

I.   MISCELLANEOUS

     1.   Amendment. This Agreement may be amended only in writing by mutual
          agreement of the parties.

     2.   Nonwaiver. Waiver of any provision of this Agreement may only be made
          in writing, and shall not be construed as a waiver of any other
          provisions of this Agreement.

     3.   Previous Agreement. As of the Effective Date of this Agreement, this
          Agreement supersedes and replaces any previous Sales Agency Agreement
          between the parties covering professional liability insurance in the
          State of Michigan. This Agreement does not supersede the agreements
          which have been entered into concerning the subagencies listed in
          Paragraph A, 5, above.
     4.   Independent Contractor. Agent shall in all respects function and be
          regarded as an independent contractor while performing its obligations
          under this Sales Agency Agreement.

     5.   Michigan Law. This Agreement shall be interpreted and enforced under
          the laws of the State of Michigan.

                                       6

<PAGE>   7

     6.   Effective Date. This Agreement is made effective beginning January 1,
          2000, and the first year and renewal commissions specified on the
          Agency Commission Schedule shall be effective from January 1, 2000.

     The parties, by their respective designees authorized to sign for them,
have executed this Agreement.

                          MUTUAL INSURANCE CORPORATION
                                   OF AMERICA

Dated:  March 30, 2000                      By  Stephen L. Byrnes
      -------------------                       --------------------

                                                   Its    CMO
                                                       -------------

                             SCW AGENCY GROUP, INC.

Dated:  4-13-2000        , 1988             By  Terrence L. Walsh
      -------------------                       --------------------

                                                   Its   CEO
                                                       -------------
                                       7

<PAGE>   8
                                 JUNE 26, 1999

                                      1999
                                    RENEWAL
                      OF MICOA/SC&W SALES AGENCY AGREEMENT

                       THREE YEAR SCHEDULE OF COMMISSIONS

1999 RENEWAL AND PRODUCTION BONUS SCHEDULE

MICOA and SC&W agree to renew the Sales Agency Agreement ("Agreement") which
was effective January 1, 1998 for an additional year beginning January 1, 1999,
subject to the following stipulations and the information contained on the
attached.

             The January 1, 1999 Agency Commission Schedule, and,

             The 1999 Production Bonus Schedule

As provided in the Agency Commission Schedule including Production Bonus, any
Production Bonus Commission applicable to 1999 shall be determined by the 1999
production bonus provisions of the January 1, 1999 Agency Commission Schedule.
Any 1999 bonus earned shall be payable by February 1, 2000.

THREE YEAR SCHEDULE OF COMMISSIONS

Also attached is the 1999 SC&W Michigan Three Year Physician-Individual and
Medstaff Commission Schedule, the provisions of which would apply to each
listed year provided that the Agreement is renewed and otherwise in effect for
the year.  Nothing in this Commission schedule, this 1999 Renewal or the other
provisions of the Agreement or its attachments shall be construed or understood
to imply automatic annual renewal or extension of the agreement or its
attachments.

ANNUAL PLAN REVIEW

A review of SC&W performance results for MICOA based on SC&W's annual plan for
Michigan MICOA business shall be a precondition to any decision to renew the
Agreement for years beyond 1999.

Annual plans will become effective each January 1 for years when this Agreement
is renewed.  The Plans will be developed in writing by SC&W, and will be subject
to MICOA's review and acceptance by December 1 of each year previous to the
anticipated renewal year.  For 1999 the annual plan was submitted to MICOA and
accepted in June 1999.

Plan reviews by MICOA and SC&W will also recognize any MICOA imposed business
factors including rate changes and underwriting criteria, during the relevant
year, which were beyond SC&W's control and which directly affected annual
production results for the period.  Any plan performance review as a
precondition to any decision to renew the agreement will be concluded by
January 15 of the year following the preceding sales year under review.

Reviews deemed unsatisfactory to MICOA in its sole discretion, and which are
unaffected directly by MICOA imposed business factors impacting the period under
review shall be considered grounds for termination otherwise permitted by
Paragraph G of the Agreement.

                                             MICOA

                                             By: /s/ Thomas C. Payne, M.D.
                                                --------------------------
                                                     Thomas C. Payne, M.D.
                                                     Secretary/Treasurer

                                             SC&W

                                             By: /s/ Terrence L. Walsh
                                                -----------------------
                                                     Terrence L. Walsh
                                                     CEO

                                       2
<PAGE>   9

                                 JANUARY 1, 1999
                           AGENCY COMMISSION SCHEDULE

<TABLE>
<CAPTION>
                                                    FIRST YEAR                         RENEWAL
                                                  COMMISSION(1)                      COMMISSION(2)
                                                  -------------                      -------------
<S>                            <C>                                                   <C>
PHYSICIAN-INDIVIDUAL
- Claims Made         ]
- Occurrence          ]        Note:  See Page 5 attachment for three year rate schedule.
- Tailgard            ]

MEDSTAFF
- Claims Made         ]
- Occurrence          ]        Note:  See Page 5 attachment for three year rate schedule
- Tailgard            ]

DENTISTS
- Claims Made                                          15.0%                              8.5%
- Occurrence                                           15.0%                              8.5%
- Tailgard                                             15.0%                              8.5%

HOSPITALS
- 200,000 plus                                         15.0%                              5.0%
- 0 to 200,000                                         15.0%                              7.0%

ENDORSEMENTS

- All endorsements results in additional premium will be treated as new business.
- Endorsements resulting in a decrease of premium shall be treated as renewal business.
- Extended reporting endorsement (tails) shall be paid as renewals (5.0%).
- Prior acts policies paid as new business (5.0%)
</TABLE>
--------------------------------------------------------------------------------
FOOTNOTES

(1)  Effective July 1, 1999
(2)  Effective July 1, 1999.

<PAGE>   10

         1999 SC&W MICHIGAN THREE YEAR PHYSICIAN-INDIVIDUAL AND MEDSTAFF
                               COMMISSION SCHEDULE

<TABLE>
<CAPTION>
        FIRST YEAR AND             CHANGE DATE                   DURATION
           RENEWAL
         COMMISSIONS
--------------------------------------------------------------------------------
<S>                             <C>                              <C>
            5.00%                      Now                          Now
                                       ---                          ---
--------------------------------------------------------------------------------
            5.50%               July to Dec 1999                  6 Mos.
--------------------------------------------------------------------------------
            5.75%               Jan to July 2000                  6 Mos.
--------------------------------------------------------------------------------
            6.00%               July to Dec 2000                  6 Mos.
--------------------------------------------------------------------------------
            6.50%               Jan to July 2001                  6 Mos.
--------------------------------------------------------------------------------
            6.75%               July to Dec 2001                  6 Mos.
--------------------------------------------------------------------------------
            7.00%               Jan to July 2002                  6 Mos.
--------------------------------------------------------------------------------
            7.50%               July to Dec 2002                  6 Mos.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
                                                                  42 Mos.
</TABLE>

Note: Thirty-six month schedule of above commission levels are subject to
      contract review provisions. At December 2002 this commission schedule may
      be reduced at MICOA'S discretion.

<PAGE>   11

                           2000 INCENTIVE PLAN - SC&W*

Total Bonus Incentive:  $107,000
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
                                                                                                 GOAL
--------------------------------------------------------------------------------------------------------------------
<S>                                     <C>                                           <C>
1.  Underwriting Loss                                    30%                              Year-end threshold
--------------------------------------------------------------------------------------------------------------------
2.  Retention                                            30%                                     85%
--------------------------------------------------------------------------------------------------------------------
3.  Loss Ratio                                           30%                                     85%
--------------------------------------------------------------------------------------------------------------------
4.  Business Plan Execution                              10%                                  As planned
--------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
           % LEVEL ACHIEVED                           % APPLIED                              AWARD LEVEL
--------------------------------------------------------------------------------------------------------------------
1. UNDERWRITING LOSS                    % APPLIED                                     AWARD LEVEL - $32,100
--------------------------------------------------------------------------------------------------------------------
                 102                                      8%                                    $8,560
--------------------------------------------------------------------------------------------------------------------
Target           100                                     16%                                   $17,120
--------------------------------------------------------------------------------------------------------------------
                  96                                     24%                                   $25,680
--------------------------------------------------------------------------------------------------------------------
                  94                                     30%                                   $32,100
--------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
2. RETENTION LEVEL                      % APPLIED                                     AWARD LEVEL - $32,100
--------------------------------------------------------------------------------------------------------------------
                  84                                      8%                                    $8,560
--------------------------------------------------------------------------------------------------------------------
Target            85                                     16%                                   $17,120
--------------------------------------------------------------------------------------------------------------------
                  87                                     24%                                   $25,680
--------------------------------------------------------------------------------------------------------------------
                  89                                     30%                                   $32,100
--------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
3. LOSS RATIO                           % APPLIED                                     AWARD LEVEL - $32,100
--------------------------------------------------------------------------------------------------------------------
                 86.5                                     8%                                    $8,560
--------------------------------------------------------------------------------------------------------------------
                  86                                     16%                                   $17,120
--------------------------------------------------------------------------------------------------------------------
Target            85                                     24%                                   $25,680
--------------------------------------------------------------------------------------------------------------------
                  82                                     30%                                   $32,100
--------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
4. BUSINESS PLAN EXECUTION                               10%                                   $10,700
--------------------------------------------------------------------------------------------------------------------
</TABLE>

*  This 2000 Incentive Plan may be changed at MICOA's sole discretion beyond
   2000.<PAGE>   1
                                                                    EXHIBIT 10.6

                             KMIC INSURANCE COMPANY
                                AGENCY AGREEMENT

         Kentucky Medical Insurance Company, a Kentucky insurance corporation
    ("KMIC") and KMA Agency of Kentucky ("Agent"), (sometimes commonly referred
    to as the "Parties") agree as follows:

    A.   AUTHORITY OF AGENT

         Subject to requirements imposed by law, the underwriting rules,
         procedures and regulations of KMIC and this agreement, the Agent is
         authorized to:

         1.   solicit, receive and transmit to KMIC, proposals for insurance
              contracts for which a commission is specified in the schedule of
              commissions provided by KMIC.

         2.   Produce and deliver certificates of insurance and written binders
              in accordance with KMIC's underwriting requirements. The Agent is
              not authorized to accept or bind any risk or to otherwise
              obligate KMIC without specific authority from KMIC.

         3.   Provide all usual and customary services of an Agent on all,
              policies placed with KMIC subject to the following:

              a.   KMIC will not be responsible for Agency expenses including
                   but not limited to salaries, benefits, bonus payments, rent,
                   transportation, employee hire or solicitor's fees, postage,
                   telegrams, telephone, advertising, licensing fees or any
                   other Agency expenses whatsoever.

              b.   The Agent will not undertake or initiate advertising of any
                   nature in connection with business or policies related to
                   KMIC without the approval of KMIC.

              c.   The Company realizes that with multiple Agents representing
                   it in Kentucky, conflicts may arise between Agents. In those
                   situations the first legitimate submission received, as
                   determined in the sole discretion of the Company shall be
                   the prevailing submission. In the case of an Agent of record
                   letter, if the two Agents in conflict cannot reach an
                   agreement, the Company may, but is not required to, refuse
                   or withdraw its quotation. Otherwise, the policyholder's
                   written statement designating the Agent or broker shall
                   control. The Company will not accept agent of record letters
                   from other agents concerning business currently written by
                   Agent.

<PAGE>   2

              d.   All future agency or broker appointments in Kentucky for
                   physician professional liability will be made by the Agent
                   with Company approval.

         4.   To promptly report all claims and losses of which the Agent has
              knowledge and properly notify KMIC when the Agent receives notice
              of the commencement of any related legal action. Agent shall
              refrain from admitting or denying liability on the part of the
              company in connection with any claim or lawsuit.

         5.   Appoint subagents to distribute KMIC's products and services as
              appropriate in the State of Kentucky, provided that such
              appointments are done with the prior approval of KMIC and upon
              receipt of KMIC's written acceptance of the subagent. Subagent
              contracts must be approved by KMIC. Agent shall instruct and
              oversee any subagents so as to assure compliance with the terms
              and requirements of this agreement. The following three agencies
              who are currently appointed by KMIC shall be considered appointed
              under the terms of this paragraph as subagents of the Agent,
              effective on the date this entire agreement becomes effective:

              |X|  Van Zandt, Emrich & Cary, Inc.
              |X|  Harris & Harris, Inc.
              |X|  Gross Insurance Agency

    B.   COMMISSIONS

         1.   Commissions shall be paid in accordance with Exhibit A which is
              attached and incorporated by this reference. Commissions may be
              revised: by mutual agreement between the Agent and KMIC; or
              independently by KMIC after giving the Agent 90 days advance
              notice of the proposed changes and the effective date.
              Commissions may also be altered by KMIC for failure by Agent to
              comply with the minimum production goal specified in the attached
              Exhibit A. Any return commissions otherwise due KMIC under this
              Agreement will be calculated at the rate initially applicable.

         2.   Commissions on premiums shall be paid to the Agent by the 15th of
              the month following the month in which such premiums are received
              and recorded by KMIC, subject to deduction by KMIC of any return
              commissions due from the Agent.

         3.   The Agent agrees to return commissions on policy cancellations or
              reductions at the same rate at which such commissions were
              originally retained. The payment of commission by the Company to
              the Agent is contingent upon the Agent being legally licensed.
              Any revocation or

                                      - 2 -

<PAGE>   3

              cancellation of the Agent's license is grounds for nonpayment of
              commissions.

    C.   KMIC BILLED POLICIES

         For business subject to Exhibit A and placed with KMIC and billed by
         KMIC directly to the policyholder, the following shall apply in
         addition to all the other provisions of this agreement:

         1.   The processing and submittal of all such business shall be
              subject to provisions outlined in KMIC's written requirements and
              forms as they may be implemented by KMIC from time to time;

         2.   The Agent shall submit the appropriate premium to KMIC without
              deduction of commission.

         3.   Commissions on premiums shall be paid to the Agent within 30
              business days of the month in which such premiums are received
              and recorded by KMIC, subject to deduction by KMIC of any return
              commissions due from the Agent.

    D.   POLICY CANCELLATION

         Cancellation of any policy in force, when requested by the
         policyholder, will be honored by KMIC, except for those KMIC is not
         otherwise permitted to cancel.

    E.   OWNERSHIP OF EXPIRATIONS

         In the event of termination, KMIC owns all expirations.

    F.   AGENT'S ERRORS AND OMISSION INSURANCE

         The Agent will maintain valid errors and omissions insurance, with
         minimum limits of $1,000,000 per incident, which shall contain terms
         and limits of coverage acceptable to KMIC covering the Agent's
         solicitors and each of its employees. The Agent shall provide KMIC a
         copy of each policy, as requested.

    G.   AGENCY SALE OR TRANSFER

         The Agent agrees to provide KMIC with at least ninety (90) days advance
         written notice of any sale, merger, consolidation or other transfer of
         the Agent's business. Upon such written notice, KMIC will have
         forty-five days after receiving notice to respond, and may, at its
         election:

                                      - 3 -

<PAGE>   4

         1.   Assign this agreement to the successor, or

         2.   Enter into a new agency agreement with the successor, or

         3.   Terminate this agreement.

     H.  TERMINATION OF AGREEMENT

         1.   This agreement shall terminate:

              a.   Automatically if any public authority cancels or declines to
                   renew the Agent's license or Certificate of Authority.

              b.   Immediately when either party gives detailed written notice
                   to the other of alleged gross and willful misconduct, fraud,
                   material misrepresentation, or failure to pay Agent's return
                   account less commission within 30 days after written
                   remedial demand by KMIC.

              c.   Pursuant to G,3 above.

         2.   This Agreement shall terminate, upon either party giving at least
              one hundred twenty (120) days advance written notice to the
              other, if not otherwise contrary to applicable law or this
              Agreement.

         3.   If the Agent is delinquent in either accounting or payment of
              monies due KMIC, KMIC may by written notice to the Agent
              immediately terminate, suspend or modify any of the provisions of
              this agreement. Such action shall not be taken by KMIC over minor
              differences between the records of the Agent and KMIC.

         4.   All supplies, including forms and policies furnished by KMIC and
              any copies or other reproductions of them, shall remain the
              property of KMIC and shall be returned to KMIC or its
              representative upon demand.

    I.   INDEMNIFICATION

         The respective parties shall indemnify and hold one another harmless
         against all civil liability including damages, fines, penalties,
         approved attorney fees, costs of investigation and defense reasonably
         incurred arising out of a direct result of:

         1.   Any KMIC act or omission damaging to the Agent, except to the
              extent the Agent has caused, compounded, or contributed to such
              error, in which case Agent shall indemnify KMIC to the extent of
              the damages caused by or attributable to Agent.

                                      - 4 -

<PAGE>   5

         2.   Any Agent act or omission damaging to KMIC, except to the extent
              the KMIC has contributed to such error, or where Agent's
              reasonable use of KMIC's forms, procedures or instructions has
              caused such damage, in which case KMIC shall indemnify Agent to
              the extent of the damages caused by or attributable to KMIC.

         3.   The Agent and KMIC shall properly notify one another upon
              receiving notice off the commencement of any action related to
              such liabilities. KMIC shall be entitled to participate in any
              such action or to assume the defense of any such action. If KMIC
              assumes the defense of any such action, it shall not be liable to
              the Agent for any legal or other expenses subsequently incurred
              on the Agent's behalf absent KMIC's advance approval of such
              expenses.

         4.   Neither party shall, except at its own risk and expense,
              voluntarily assume any liability, make any payment or incur any
              expense without the prior written consent of the other.

    J.   MISCELLANEOUS

         1.   Amendment. This agreement may be amended only in writing by
              mutual agreement of the Agent and KMIC.

         2.   Non Waiver. Any failure by KMIC to insist upon compliance with
              any provisions of this Agreement or of the rules and regulations
              of KMIC shall not be construed as or constitute a waiver of them
              by KMIC.

         3.   Integrated Agreement. This Agreement and its attachments as
              modified from time to time supersedes and replaces as of its
              effective date, all previous agreements, if any, between KMIC and
              the Agent.

         4.   Independent Contractor. The Agent is an independent insurance
              agent and independent contractor, and not an employee, manager,
              officer or owner of KMIC.

         5.   Applicable Law. This Agreement shall be interpreted under the
              laws of the State of Kentucky. Any provisions of this Agreement
              or any amendments to the Agreement that are or become in conflict
              with any applicable statutes or regulations shall be deemed to be
              amended to conform to those statutes or regulations.

         6.   Counterparts. This Agreement and any Exhibits which require
              signatures may be executed in counterparts which shall together
              be regarded as binding upon the Parties.

                                      - 5 -

<PAGE>   6

         7.   Authority. The persons signing below represent and warrant that
              they are duly authorized representatives of the respective
              Parties, fully willing and able to execute this Agreement.

         Signed and effective this 13th Day of October, 1998.

                                         AGENT

                                         By:  J. Dennis Johnson
                                              ----------------------------------

                                         Its: President
                                              ----------------------------------

                                         KENTUCKY MEDICAL INSURANCE COMPANY

                                         By:  /s/ Stephen L. Byrnes
                                              ----------------------------------
                                              Stephen L. Byrnes, Chief Marketing
                                              Officer of Stratton-Cheeseman
                                              Management Company and Authorized
                                              Representative of KMIC

                                      - 6 -

<PAGE>   7

                                   EXHIBIT A

         AGENCY AGREEMENT FOR PHYSICIAN PROFESSIONAL LIABILITY BUSINESS
                   SCHEDULE OF COMMISSIONS AND WRITTEN PREMIUM
                                KMA AGENCY, INC.

<TABLE>
<CAPTION>

<S>                                           <C>              <C>
On Business Produced by KMA Agency             New              Renewal
----------------------------------             ---              -------

Physicians Professional Liability              4.5%              4.5%

On Business Produced by Subagents              New              Renewal
---------------------------------              ---              -------

Physicians Professional Liability              10%               10%

</TABLE>

An annual year end production bonus program will be instituted between KMIC and
the Agency. At or about the beginning of each year an annual target shall be
established by KMIC, in consultation with the Agency, for the bonus program
percentage awards for that year which will be payable in February following the
year for which the bonus was earned.

For the 1998 Bonus Program, the total net written premium to be produced by
Agent is $13,000,000 by December 31, 1998. If total net written premium produced
by Agent does not reach $13,000,000, the commission rate may (at KMIC's
discretion) reduce to 3.5% on New Business Policies and 3.5% on Renewal Policies
effective January 1, 1999.

                                      - 7 -

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