Document:

<PAGE>

                                                                   EXHIBIT 10.31

                                TRUST AGREEMENT

     THIS TRUST AGREEMENT is made as of the 30th day of April, 2001, by and
between United States Fire Insurance Company, a New York corporation, with a
place of business at 305 Madison Avenue, Morristown, NJ 07960 (hereinafter
referred to as the "Employer"), and AMVESCAP NATIONAL TRUST COMPANY, a National
Trust Bank organized under the laws of the United States (hereinafter referred
to as the "Trustee").

                                  WITNESSETH:

     WHEREAS, the Employer has established and sponsors an Internal Revenue Code
of 1986, as amended (hereinafter referred to as the "Code") Section 401(k)
profit sharing plan, known as The Individual Retirement Plan of United States
Fire Insurance Company (hereinafter referred to as the "Plan"), for the purpose
of providing retirement and related benefits for certain employees of the
Employer and their beneficiaries; and

     WHEREAS, a committee of at least three individuals (hereinafter referred to
collectively as the "Administrator") has been appointed pursuant to the
provisions of the Plan to administer the same; and

     WHEREAS, the Plan calls for the establishment of a trust to which
contributions can be paid from time to time under Code Section 401(a), and which
is exempt from income taxation under Section 501 of the Code; and

     WHEREAS, as of April 30, 2001, T. Rowe Price (the "Prior Trustee") served
as trustee under the terms of the Trust Agreement between the Employer and the
Prior Trustee dated August 13, 1998 (hereinafter the "Prior Trust Agreement");
and

     WHEREAS, the Employer wishes to (a) appoint the Trustee as successor
trustee of the Plan as of May 1, 2001, and (b) define and limit the Trustee's
powers, duties and responsibilities to those specifically provided herein; and

     WHEREAS, the Employer desires the Trustee to hold and administer the funds
of the trust and any future amounts contributed by the Employer to the Plan, and
the Trustee is willing to do so on the terms and conditions hereinafter set
forth.

     NOW, THEREFORE, in consideration of the mutual covenants hereinafter
contained, the parties hereto hereby agree as follows:

ARTICLE I -- CONTRIBUTIONS

A.  The Trustee shall hold all property received by it as Trustee and any
    property into which the same or any part thereof may from time to time be
    converted, together with the income thereon (all such property being
    hereinafter called the "Trust Fund") IN TRUST, without distinction between
    the principal and income thereof, and shall apply the same, after the
    payment of all necessary expenses, for the exclusive benefit of certain
    employees and their beneficiaries. The Trustee shall accept any cash, and
    may accept any other property, contributed pursuant to the terms of the
    Plan, but shall not be under any duty nor have any right to require the
    Employer to contribute to the Trust Fund or to determine whether the amount
    of any contribution hereunder has been correctly computed under the terms of
    the Plan.

B.  The Employer hereby agrees to provide to the Trustee within ninety (90) days
    of the date of this Agreement, a full and complete written accounting from
    the Prior Trustee as of the date of this Agreement setting forth all
    investments, receipts, disbursements, allocations, and other transactions
    effected by the Prior Trustee during the period beginning on the first day
    of the current Plan year and ending on the date of this Agreement, and
    certified as to the accuracy of the information contained therein.

                                        1
<PAGE>

ARTICLE II -- POWERS AND DUTIES OF TRUSTEE

A.  Nondiscretionary Trustee

     The Trustee shall be a nondiscretionary trustee. The Trustee shall have no
     discretion or authority with respect to the investment of the Trust Fund
     and shall act solely as a directed trustee of the finds contributed to the
     Trust Fund.

B.  Investment Directions

     The Trustee shall effect and change investment of the Trust Fund pursuant
     to proper directions as and when reported to the Trustee. If participant
     direction of investments is permitted under the Plan, the Administrator
     shall establish procedures for a participant's proper direction of
     investment. The Trustee shall neither effect nor change any such
     investments without proper direction, and shall have no right, duty, or
     responsibility to recommend investments or investment changes.

     The Employer or Administrator may designate such number of separate
     accounts as it, in its sole discretion, determines, for the investment of
     the Trust Fund. The Employer shall establish and deliver to the Trustee a
     Funding Policy setting forth the investment options to be available and
     allowable for investment of the Trust Fund.

C.  Investment Manager

     The Employer may from time to time in its sole discretion appoint, an
     investment manager as defined in Section 3(38) of the Employee Retirement
     Income Security Act of 1974, as amended ("ERISA"). The Employer shall
     notify the Trustee of any appointment of an investment manager by
     delivering to the Trustee an executed copy of the instrument under which
     the investment manager was appointed to act as such hereunder and shall
     specify to the Trustee that portion of the Trust Fund which shall be
     subject to investment management. During the term of such appointment, the
     investment manager shall have the sole responsibility for the investment
     and reinvestment of that portion of the Trust Fund subject to its
     investment management. The Trustee may maintain a separate account within
     the Trust Fund for the assets of the Trust Fund subject to investment
     management. The Employer may terminate its appointment of an investment
     manager at any time and shall in writing notify the Trustee of such
     termination. Any investment manager shall exercise such of the powers
     enumerated in Section D and otherwise contained in this Agreement with
     respect to that portion of the Trust Fund subject to its investment
     management as may be provided in the instrument under which the investment
     manager was appointed to act as such hereunder.

D.  Investment Authority

    The Trustee, as a directed trustee, is authorized and empowered with the
    following rights, powers and duties, each of which the nondiscretionary
    Trustee exercises solely as directed Trustee in accordance with the
    direction of the Employer, Administrator, participant, or Investment
    Manager, as the case may be:

     1.    to invest all or any part of the assets of the Trust in any
           collective investment trust or group trust which provides for the
           pooling of the assets of plan described in Code Section 401(a) and
           exempt from tax under Code Section 501(a). The provisions of the
           documents governing such collective investment trusts or group
           trusts, as amended from time to time, shall govern any investment
           therein and are adopted by and made a part of the Plan and this Trust
           Agreement. If this Trust fails to be treated as tax-exempt under the
           Code or loses its status as such, the Employer shall immediately so
           notify the Trustee and the Trustee shall, without further notice or
           direction, remove the Trust assets from any such collective
           investment trust or group trust maintained by the Trustee, its
           affiliates, or other entity;

     2.    to invest and reinvest the Trust Fund in securities (including
           qualifying employer securities ("Employer Stock") as defined in
           Section 407(d) of ERISA) or other property, real or personal, within
           or without the United States, including, without limitation,
           interests or part interests in any bond and mortgage or note and
           mortgage, certificates of deposit, commercial paper and other
           short-term or demand obligations, secured or unsecured, whether
           issued by governmental or quasi- governmental
                                        2
<PAGE>

        agencies or corporations or by any firm or corporation. Notwithstanding
        the foregoing, the Trustee shall not make investments in securities or
        other property outside the United States unless (i) the indicia of
        ownership thereof are held within the jurisdiction of the District
        Courts of the United States or (ii) the Secretary of the Department of
        Labor shall have granted the Trustee permission to make such investments
        and in no event shall anything contained herein be deemed to purport to
        authorize any investment or reinvestment in violation of the
        requirements of ERISA;

     3.    to enter into one or more insurance contracts with one or more legal
           reserve life insurance companies and, subject to the provisions of
           this Agreement, to remit any payments which it may receive hereunder
           to any such insurance company, and to delegate powers in connection
           with the administration of the portion of the Trust Fund invested in
           any such insurance contract, to the insurance company issuing such
           insurance contract;

     4.    to sell property at public or private sale for cash or upon credit or
           partly for cash and partly upon credit and upon such terms and
           conditions as it shall deem proper. No purchaser shall be bound or
           liable for the application of the proceeds of any such sale;

     5.    to exchange any securities or property held by it for other
           securities or property, or partly for such securities or property and
           partly for cash, and to exercise conversion, subscription, option and
           similar rights with respect to any securities held by it, and to make
           payments in connection therewith;

     6.    to vote in person or by proxy at corporate or other meetings and to
           participate in or consent to any voting trust, reorganization,
           dissolution, merger or other action affecting any securities in its
           possession or the issuers thereof, and to make payments in connection
           therewith;

     7.    to improve any real property;

     8.    to acquire, hold or dispose of property in unregistered form, or in
           its name without designation of fiduciary capacity, or in the name of
           its nominee, to deposit any property in a depository or clearing
           corporation and to deposit with the federal reserve bank in its
           district any securities the principal and interest of which the
           United States or any department, agency or instrumentality thereof
           has agreed to pay or has guaranteed payment;

     9.    to compromise and adjust all debts or claims due to or made against
           it;

     10.   to make distributions in cash or in specific property, real or
           personal, or an undivided interest therein, or partly in cash and
           partly in such property in accordance with the terms of the Plan; and

     11.   to retain in cash so much of the Trust Fund as the Administrator may
           direct to satisfy liquidity needs of the Plan and to deposit any cash
           held in the Trust Fund in any bank or savings account or short term
           investment fund.

E.    Voting of Employer Stock

     Each Plan participant (as defined under the terms of the Plan), as a named
     fiduciary within the meaning of Section 403(a)(1) of ERISA, shall be
     entitled to direct the Trustee with respect to the vote of any shares of
     Employer Stock held in his account or represented by units of an Employer
     Stock Fund credited to his account (including fractional shares or units as
     the case may be) as of the shareholder record date for such vote, and the
     Trustee shall follow the directions of such participant. To the extent that
     the Trustee does not receive timely instructions from a participant who has
     the authority pursuant to the preceding sentence to instruct the Trustee to
     vote the shares allocated or units of the Employer Stock Fund credited to
     his account, such participant, as a named fiduciary within the meaning of
     Section 403(a)(1) of ERISA, shall be deemed to have timely instructed the
     Trustee to vote such shares, or the shares represented by such units, as
     the case may be, in same manner as all other participants who in fact
     timely instruct the Trustee. The Trustee shall vote all unallocated shares
     of Employer Stock and shares of Employer Stock represented by units of the
     Employer Stock Fund which are not credited to participants' accounts,
     against the proposal on which the vote is being taken as such proposal is
     set forth in the proxy or other materials distributed to stockholders of
     the Employer. Written notice of any meeting of stockholders of the Employer
     or other occasion for the
                                        3
<PAGE>

     exercise of voting or other rights and a request for voting instructions,
     together with a description of the consequences of a participant failing to
     provide timely instructions with respect to the exercise of such voting or
     other rights, shall be given by the Employer in such manner as the Trustee
     shall determine, to each participant entitled to give instructions for
     voting such shares of Employer Stock on such occasion, within the time for
     furnishing such notice to stockholders of the Employer.

F.  Shareholder Rights in the Event of a Tender Offer

    In the event a tender offer is made generally to the shareholders of the
    Employer to transfer all or a portion of their shares of stock in return for
    valuable consideration, including but not limited to, offers regulated by
    Section 14(d) of the Securities Exchange Act of 1934, each participant,as a
    named fiduciary within the meaning of Section 403(a)(1) of ERISA, shall be
    entitled to direct the Trustee with respect to the sale, exchange or
    transfer of shares of Employer Stock held by the Trustee and allocated to
    such participant's account or represented by units of the Employer Stock
    Fund credited to such participant's account (including fractional shares or
    such units, as the case may be), and the Trustee shall follow the directions
    of such participant. To the extent that the Trustee does not receive timely
    instructions from a participants who has the authority pursuant to the
    preceding sentence to instruct the Trustee to tender or exchange either the
    shares allocated to his account or the shares represented by the units of
    the Employer Stock Fund credited to his account, such participant, as a
    named fiduciary within the meaning of Section 403(a)(1) of ERISA, shall be
    deemed to have timely instructed the Trustee not to tender or exchange such
    shares of Employer Stock allocated to his account or the shares represented
    by the units of the Employer Stock Fund credited to such participant's
    account. Written notice of any tender offer and a request for tender
    instructions, together with written notice of the consequences of a
    participant's failure to provide timely instructions with respect to the
    sale, exchange or transfer of such shares of Employer Stock, shall be given
    by the Employer, in such manner as the Trustee shall determine, to each
    participant entitled to give tender instructions for such shares of Employer
    Stock, within the time for furnishing such notice to stockholders of the
    Employer. With respect to the tender or exchange of all unallocated shares
    of Employer Stock and shares of Employer Stock represented by units of the
    Employer Stock Fund which are not credited to participants' accounts, the
    Trustee shall not tender or exchange such shares of Employer Stock. A
    participant shall not be limited in the number of instructions to tender or
    withdraw from tender after a reasonable time established by the Trustee.
    Notwithstanding anything contained herein to the contrary, with respect to
    proceeds from the sale of any shares of Employer Stock sold pursuant to this
    paragraph, the Trustee shall invest the proceeds as directed by the
    participant among the investment options then available under the Plan.

G.  Funding Policy

    The Employer shall advise the Trustee in writing of any funding policy and
    method which has been established to carry out the objectives of the Plan
    and shall promptly advise the Trustee of any changes therein and the Trustee
    shall be obligated to follow such policy and method.

ARTICLE III -- PAYMENT OF FUNDS

A.  Subject to the provisions of Article XI hereof, the Trustee shall from time
    to time withdraw, pay or transfer cash or other property from the Trust Fund
    to such persons, in such amounts, and in such manner as the Administrator
    may direct.

B.  Orders from the Administrator need not specify the purpose of the payments
    so ordered, and the Trustee shall not be responsible in any way respecting
    the purpose or propriety of such payments or for the administration of the
    Plan. Any such order shall constitute a certification that the payment
    directed is one which the Administrator is authorized to direct.

     The Trustee shall be under no duty to enforce payment of any contribution
     and shall not be responsible for the adequacy of the Trust Fund to meet and
     discharge any liabilities under the Plan. It is expressly understood that
     the duties and obligations of the Trustee shall be only those expressly
     stated in this

                                        4
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     Agreement. If a dispute arises as to who is entitled to or should receive
     any benefit or payment, the Trustee may withhold or cause to be withheld
     such payment until the dispute has been resolved.

C.  In the event that any payment ordered by the Administrator shall be mailed
    by the Trustee by registered mail directed to the person specified in such
    order at the latest address of such person filed with the Administrator, and
    shall be returned to the Trustee because such person cannot be located at
    such address, the Trustee shall promptly notify the Administrator of such
    return. Upon the expiration of sixty (60) days after such notification such
    order shall become void, and unless and until a further order of the
    Administrator is received by the Trustee with respect to such payment, the
    Trustee shall thereafter continue to administer the Trust Fund as if such
    order had not been made by the Administrator. The Trustee shall not be
    obligated to search for or ascertain the whereabouts of any such person (or
    his duly appointed representative).

ARTICLE IV -- RETURN OF FUNDS TO EMPLOYER

A.  Except as provided below, no part of the Trust Fund shall at any time prior
    to the satisfaction of all liabilities with respect to the participants in
    the Plan and their beneficiaries be used for, or diverted to, purposes other
    than the exclusive benefit of such participants and their beneficiaries and
    for the defraying of the reasonable expenses of the Trust Fund. The
    investments of this Trust shall not be subject to garnishment, attachment,
    levy or execution of any kind for the debts or defaults of the Trust or of
    any person having or claiming to have any interest in the Trust. The Trust's
    investments shall not be assignable in whole or in part by the Trust or by
    any person having or claiming to have any interest in the Trust, except that
    the interest in this Trust held by the Trustee may be transferred to a
    successor Trustee.

B.  In the case of a contribution that is made by the Employer by a mistake of
    fact, Section A above shall not prohibit the return to the Employer at the
    direction of the Administrator of such contribution within one year after
    the payment of the contribution.

C.  If a contribution by the Employer is expressly conditioned on the initial
    qualification of the Plan under Section 401 of the Code, and if the Plan
    does not initially qualify, then Section A above shall not prohibit the
    return to the Employer at the direction of the Administrator of such
    contribution within one year after the date of denial of qualification of
    the Plan.

D.  If a contribution by the Employer is expressly conditioned upon the
    deductibility of the contribution under Section 404 of the Code, then to the
    extent the deduction is disallowed, Section A above shall not prohibit the
    return to the Employer at the direction of the Administrator of such
    contribution (to the extent disallowed) within one year after the
    disallowance of the deduction.

E.  In the case of the termination of the Plan, any residual assets of the Plan
    may be distributed to the Employer at the direction of the Administrator if
    all liabilities of the Plan to participants and their beneficiaries have
    been satisfied and the distribution does not contravene any provision of the
    law.

ARTICLE V -- STANDARD OF CONDUCT

A.  The Trustee shall discharge its duties hereunder with the care, skill,
    prudence and diligence under the circumstances then prevailing that a
    prudent man acting in a like capacity and familiar with such matters would
    use in the conduct of an enterprise of a like character and with like aims.
    The Trustee shall execute all trades hereunder subject to best qualitative
    execution such that the price shall be considered but shall not solely
    dictate execution. The Trustee (or any investment manager appointed pursuant
    to Article II hereof) shall not engage in any transaction which it knows or
    should know is in violation of any provision of Section 406 of ERISA.
    Notwithstanding the foregoing, the Trustee (or any investment manager
    appointed pursuant to Article II hereof) may, in accordance with any
    appropriate exemption provided under ERISA or upon the approval of the
    Secretary of the Department of Labor, enter into any transaction otherwise
    prohibited under Section 406 of ERISA.

                                        5
<PAGE>

B.  The Trustee may consult with counsel, who may be counsel for the Employer or
    Administrator or for the Trustee, in its individual capacity, and shall not
    be deemed imprudent by reason of its taking or refraining from taking any
    action in accordance with the opinion of counsel. The Trustee shall not be
    required to give any bond or any other security for the faithful performance
    of its duties under this Agreement, except as required by law.

    To the extent permitted by law, the Trustee shall not be liable for any loss
    to or diminution of the Trust Fund resulting from any action taken or
    omitted except if due to the failure of the Trustee to act to fulfill its
    obligation hereunder (including but not limited to the obligation to make
    investments as directed by Plan participants as requested by the
    Administrator) with the care, skill, prudence, and diligence under the
    circumstances then prevailing that a prudent man acting in a like capacity
    and familiar with such matters would use in the conduct of an enterprise of
    a like character and with like aims.

ARTICLE VI -- RECORDS

     The Trustee shall keep records of all transactions relating to the Trust
Fund, which shall be made available at all reasonable times to any persons
designated by the Administrator or as may otherwise be required by law. The
Trustee shall render to the Employer and the Administrator an accounting
annually within ninety (90) days after receipt of the final Plan year end
contributions. The Trustee shall file with the Employer a written accounting
setting forth all investments, receipts, disbursements and other transactions
effected by it during the year ending on such date (but not including any part
of such year for which such an accounting has previously been filed) and
certified as to the accuracy of the information set forth therein. The
Administrator may approve such accounting for the Employer and itself by an
instrument in writing delivered to the Trustee. In the absence of the
Administrator filing with the Trustee objections to any such accounting within
one hundred twenty (120) days after its receipt, the Administrator shall be
deemed to have so approved such accounting on behalf of itself and the Employer
except as to any act or transaction that the Administrator cannot reasonably be
expected to have discovered after reviewing such accounting with the care,
skill, diligence and prudence expected of persons in the position and with the
knowledge of the Administrator. In such case, or upon the written approval of
the Administrator of any such accounting, the Trustee shall, to the extent
permitted by applicable law, be discharged from all liability to the
Administrator and the Employer for its acts or failures to act described by such
accounting except for a negligent, willful or other breach of duty under ERISA
on the part of the Trustee. Except to the extent otherwise provided in Sections
502 and 504 of ERISA, no person other than the Employer or the Administrator may
require an accounting or bring any action against the Trustee with respect to
the Trust Fund. The Trustee shall render to the Administrator, at least
quarterly, a statement of the Trust Fund assets and their values and, whenever a
contribution is made to the Trust Fund other than in cash, a statement of the
value of such property on the date it is received by the Trustee. The Trustee
shall render to the Employer and the Administrator an accounting within one
hundred twenty (120) days after the effective date of the removal or resignation
of the Trustee.

     The "valuation date" for the Trust Fund and for each investment fund within
the Trust Fund shall be each day on which the New York Stock Exchange is open.

ARTICLE VII -- INSTRUCTIONS FROM EMPLOYER AND ADMINISTRATOR

     Instructions and directions under this Agreement may be in writing signed
by an authorized person or may be in a tested communication effected between
electro-mechanical or electronic devices or by such other means as may be agreed
or customary between the Employer, Administrator and Trustee (including, without
limitation, oral instructions promptly followed by a written confirmation of
such oral instructions). The Employer shall certify to the Trustee the names of
the persons from time to time constituting the Administrator and those
authorized to give instructions on behalf of the Employer and the Administrator.
If the Administrator is not so identified, the Trustee shall rely solely upon
the Employer. The Trustee shall be entitled to rely without further inquiry upon
all such instructions shall be held harmless in relying upon such instructions.

                                        6
<PAGE>

ARTICLE VIII -- COMPENSATION FOR TRUSTEE

     The Trustee shall be entitled to receive such reasonable compensation for
its services as may be agreed upon between the Administrator and the Trustee.
Such compensation, reasonable attorneys' fees incurred in the administration of
the Trust Fund and all taxes levied or assessed against the Trust Fund shall be
paid out of the Trust Fund unless paid by the Employer and, until paid, shall
constitute a charge upon said Trust Fund. In addition, the Trustee's ability to
earn income on amounts held hereunder in non-interest bearing transaction
accounts for processing receipts and disbursements has been taken into
consideration in establishing the Trustee's compensation hereunder. The Trustee
shall be entitled to retain any such income as a part of the Trustee's agreed
compensation hereunder, and such income shall not be or become a part of the
assets of the Plan.

ARTICLE IX -- INDEMNIFICATION

     The Employer and the Administrator shall indemnify and hold harmless the
Trustee and its shareholders, directors, officers, employees and agents from and
against any and all claims, losses, damages, expenses and liabilities
(including, without limitation, any amounts paid in settlement and reasonable
attorneys' fees) arising either prior to the execution of this agreement, after
termination of this agreement, or from the Trustee's action or failure to act
under the Plan and Trust, unless such liability arises either from the Trustee's
gross negligence, willful misconduct or dishonesty in the performance of its
duties, or from the Trustee's violation of the standard of conduct to which it
is subject under Article V.A. above. The exception to indemnification contained
in the last clause of the preceding sentence shall not preclude indemnification
of the Trustee with respect to any action taken by the Trustee, or any failure
to act, if the action taken or the failure to act was directed by the
Administrator, the Employer or any investment manager, and the Trustee
reasonably relied on such direction.

     The Trustee shall indemnify and hold harmless the Employer and the
Administrator, and their respective shareholders, directors, officers, employees
and agents, from and against any and all claims, losses, damages, expenses and
liabilities (including, without limitation, any amounts paid in settlement and
reasonable attorneys' fees) from the Trustee's action or failure to act under
the Plan and Trust, to the extent that such liability arises either from the
Trustee's gross negligence, willful misconduct or dishonesty in the performance
of its duties, or from the Trustee's violation of the standard of conduct to
which it is subject under Article V.A. above. The indemnification obligation
contained in the preceding sentence shall not extend to any action taken by the
Trustee, or any failure to act, if such action taken or failure to act was
directed by the Administrator, the Employer or any investment manager, and the
Trustee reasonably relied on such direction.

ARTICLE X -- RESIGNATION OR REMOVAL OF TRUSTEE

     The Trustee may resign at any time by giving ninety (90) days' prior
written notice to the Employer. The Employer may remove the Trustee at any time
by giving written notice to the Trustee. In the case of the resignation or
removal of the Trustee, the Employer shall appoint a successor Trustee. Upon the
resignation or removal of the Trustee and the appointment of a successor
Trustee, the Trustee shall account for the administration of the Trust Fund up
to the date of its resignation or removal in the manner provided in Article VI
hereof and, upon the approval of such account, shall transfer to the successor
Trustee all of the assets then constituting the Trust Fund. The term "Trustee"
as used in this Agreement shall be deemed to apply to any successor Trustee
acting hereunder.

ARTICLE XI -- AMENDMENT

     The parties hereto may amend in writing all or any part of this Agreement,
except Article IV, at any time and from time to time; provided, however, that
any amendment shall not be effective until the instrument of amendment has been
submitted to the Trustee and the Trustee shall have executed such instrument.

                                        7
<PAGE>

ARTICLE XII -- TERMINATION OF AGREEMENT

     This Agreement and the Trust hereby created may be terminated at any time
by the Employer by written notice, executed and acknowledged so as to authorize
it to be recorded in the State of Colorado and delivered to the Trustee. Upon
receipt of notice of termination, the Trustee shall, after payment of all
expenses incurred in the administration and closing out of the Trust Fund and
the compensation to which the Trustee may be entitled, and upon approval of the
appropriate governmental or quasi-governmental authorities (if such approval
shall be required under applicable law), then distribute the Trust Fund, in cash
or such other property to such persons, including any successor trustee, and in
such amounts as the Administrator shall direct.

ARTICLE XIII -- NOTICES

     All notices or other communications required or permitted to be given
hereunder by either party to the other shall be in writing and shall be sent to
such party by personal delivery or by first class mail, postage prepaid,
addressed as follows:

     If to the Administrator/Employer, at

    United States Fire Insurance Company
     305 Madison Avenue
     Morristown, NJ 07960
     Attention: Carl Sullo, Senior Vice President

     If to the Trustee, at

     AMVESCAP National Trust Company
     c/o R. Eric Starr
     INVESCO Retirement Services
     400 Colony Square, Suite 2200
     1201 Peachtree St., N.E.
     Atlanta, GA 30361

     Any such notice or other communication shall be deemed received by the
party to whom sent upon the earlier of actual receipt or three days after
mailing as aforesaid. Any party hereto may change such address for delivery of
notices and other communications by giving notice in the manner set forth above.

ARTICLE XIV -- APPLICABLE LAW

     This Agreement shall be construed in accordance with ERISA and, to the
extent not preempted by ERISA, the laws of the State of Colorado.

ARTICLE XV -- SUCCESSORS

     This Agreement shall be binding upon the respective successors and assigns
of the Employer and the Trustee.

                                        8
<PAGE>

     IN WITNESS WHEREOF, the parties and the Trustee have caused this instrument
to be executed as of the day and year first above written.

                                          UNITED STATES FIRE INSURANCE COMPANY

<Table>
<S>                                            <C> <C>
                                               By  /s/ CARL SULLO
                                                   ------------------------------------------
                                                   Title:

                                               By  /s/ VALERIE GASPARIK
                                                   ------------------------------------------
                                                   Title: Secretary

                                               AMVESCAP NATIONAL TRUST COMPANY

                                               By  /s/ R. ERIC STARR
                                                   ------------------------------------------
</Table>

                                        9<PAGE>

                                                                   EXHIBIT 10.38

                             REINSURANCE AGREEMENT
                                    BETWEEN
                            RANGER INSURANCE COMPANY
                                      AND
                       THE NORTH RIVER INSURANCE COMPANY
                            EFFECTIVE MARCH 1, 1999
<PAGE>

                                     INDEX

<Table>
<Caption>
ARTICLE    DESCRIPTION                                                   PAGE
-------    -----------                                                   ----
<C>        <S>                                                           <C>
           Business Covered............................................
      1                                                                     1
           Term........................................................
      2                                                                     1
           Territory...................................................
      3                                                                     1
           Limit of Liability..........................................
      4                                                                     1
           Excess of Loss Reinsurance..................................
      5                                                                     1
           Ultimate Net Loss...........................................
      6                                                                     1
           Cash Call Provision.........................................
      7                                                                     2
           Extra Contractual Obligations...............................
      8                                                                     2
           Excess of Policy Limits.....................................
      9                                                                     2
           Follow the Fortunes.........................................
     10                                                                     2
           Errors and Omissions........................................
     11                                                                     3
           Ceding Commission...........................................
     12                                                                     3
           Reports and Remittances.....................................
     13                                                                     3
           Arbitration.................................................
     14                                                                     3
           Insolvency..................................................
     15                                                                     4
           Offset......................................................
     16                                                                     4
           Currency....................................................
     17                                                                     4
           Assignment..................................................
     18                                                                     4
           Regulatory Approvals........................................
     19                                                                     4
           Books and Records...........................................
     20                                                                     4
           Counterparts................................................
     21                                                                     5
           Governing Law...............................................
     22                                                                     5
           Headings....................................................
     23                                                                     5
           Entire Agreement, Amendments and Waivers....................
     24                                                                     5
           Validity and Enforceability of Agreement....................
     25                                                                     5
</Table>
<PAGE>

                             REINSURANCE AGREEMENT

     This Reinsurance Agreement ("Agreement") is effective as of March 1, 1999
by and between The North River Insurance Company, a New Jersey insurance company
(hereinafter known as the "COMPANY") and Ranger Insurance Company, a Delaware
insurance company (hereinafter known as the "REINSURER").

     WHEREAS, the Reinsurer desires to reinsure certain excess liability
policies for municipalities of the Company and the Company desires that the
Reinsurer reinsure such business to the extent and upon the terms and conditions
set forth herein;

     NOW THEREFORE, in consideration of the mutual covenants and promises
contained herein and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties agree as follows:

ARTICLE ONE -- BUSINESS COVERED

     The COMPANY obligates itself to cede one hundred percent (100%) of direct
written premiums and the REINSURER obligates itself to accept one hundred
percent (100%) of direct written premiums, as reinsurance, from the COMPANY for
all businesses classified as excess liability for public entities under any and
all binders, policies and contracts of insurance arranged or brokered through
Ranger Insurance Managers, Inc., a subsidiary of the Reinsurer, for the COMPANY,
which incept, renew or have an anniversary date on or after 12:01 a.m. Eastern
Time on March 1, 1999 and such polices which may hereafter come into force
during the term of this Agreement (hereinafter referred to as "Policy" or
"Policies" as appropriate), subject to exclusions, limitations and conditions
herein.

ARTICLE TWO -- TERM

     This Agreement shall take effect as of 12:01 a.m., Eastern Time, March 1,
1999, and shall continue in full force and effect until all obligations and
liabilities incurred by the REINSURER and the COMPANY under the Agreement are
fully performed and discharged. The COMPANY may terminate this Agreement by
providing the REINSURER ninety (90) days prior written at any time. All
remaining liabilities under this Agreement may be commuted at any time, however,
subject to and upon agreement by both the COMPANY and the REINSURER.

ARTICLE THREE -- TERRITORY

     This Agreement shall cover wherever the COMPANY'S Policies cover.

ARTICLE FOUR -- LIMIT OF LIABILITY

     The COMPANY shall cede and the REINSURER shall accept, as reinsurance, one
hundred percent (100%) of the liability of all paid losses, associated allocated
loss adjustment expense, case reserve and any attributable IBNR including
associated allocated loss adjustment expense pertaining to the Policies covered
as defined in Article One of this Agreement.

ARTICLE FIVE -- EXCESS OF LOSS REINSURANCE

     The REINSURER warrants to obtain and to maintain in effect during the term
of this Agreement, reinsurance coverage up to the full limit of liability for
all policies covered as defined in Article One of this Agreement, in which the
COMPANY is identified as a "named insured" for any paid loss and paid allocated
loss adjustment expense arising out of all business covered as defined in
Article One of this Agreement.

ARTICLE SIX -- ULTIMATE NET LOSS

     "Ultimate Net Loss" shall mean the actual loss paid or payable by the
COMPANY in settlement of losses or liability including any extra contractual
obligations loss as defined in Article Eight-Extra Contractual Obligations
and/or excess of original policy limits loss as defined in Article Nine-Excess
of Policy Limits, after making deduction for all recoveries, all salvages and
all claims upon other reinsurances and shall include all allocated loss

                                        1
<PAGE>

adjustment expense, legal expense, and all legal expense paid as a result of any
declaratory judgement actions brought to determine the COMPANY'S defense and/or
indemnification obligations under the Policies subject to this Agreement and all
other expenses arising from the handling and/or settlement of claims other than
salaries of employees (staff counsel shall not be considered salaried employees
for the purposes of this Agreement) and office expenses of the COMPANY. Any
declaratory judgment action expenses shall be deemed to have been fully incurred
on the same date as the original loss or effective date of the policy giving
rise to the action.

ARTICLE SEVEN -- CASH CALL PROVISION

     Should the payment due from the Reinsurer exceed one hundred thousand
dollars ($100,000) as respects any one loss, the Company may give the Reinsurer
notice of payment made or its intention to make payment on a certain date. The
Reinsurer shall remit to the Company within 5 business days upon request for
payment of Ultimate Net Loss according to Article Six of this Agreement.

ARTICLE EIGHT -- EXTRA CONTRACTUAL OBLIGATIONS

     This Agreement shall protect the Company for 100% of Extra Contractual
Obligations, as set forth in Article Six, Ultimate Net Loss. The term "extra
contractual obligations" is defined as those liabilities not covered under any
other provision of this Agreement and which arise from the handling of any claim
on the Policies, such liabilities arising because of, but not limited to,
failure by the COMPANY to settle within policy limits, or by reason of alleged
or actual negligence, fraud, misconduct or bad faith in rejecting an offer of
settlement or in the preparation of the defense or in the trial of any action
against its insured or reinsured or in the preparation or prosecution of an
appeal consequent upon such action.

     The date on which any extra contractual obligation is incurred by the
COMPANY shall be deemed, in all circumstances, to be the date of the original
loss or the effective date of the policy.

ARTICLE NINE -- EXCESS OF POLICY LIMITS

     With respect to third party insurance of any kind this Agreement shall
protect the COMPANY for 100% in connection with Ultimate Net Loss as defined in
Article Six, in excess of the limit of any of the Policies, such loss in excess
of the limit having been incurred because of failure by the COMPANY to settle
within the policy limits or by reason of alleged or actual negligence,
misconduct, fraud or bad faith in rejecting an offer of settlement or in the
preparation of the defense or in the trial of any action against its insured or
reinsured or in the preparation or prosecution of an appeal consequent upon such
action.

     For the purposes of this Article Nine, the word "loss" shall mean any
amounts for which the COMPANY would have been contractually liable to pay had it
not been for the limit of the Policy.

ARTICLE TEN -- FOLLOW THE FORTUNES

     It is agreed that any reinsurance afforded hereunder is subject to the
terms and conditions of the Policy or Policies and automatically follows all
changes in coverage and all endorsements made a part of such Policy or Policies,
or any of the COMPANY'S evidences of liability subject to the other terms and
conditions of this Agreement, as set forth herein. Any increase in limits of
liability made in such Policy or Policies are automatically binding upon the
REINSURER from the date such increase is effective, subject always to the limits
and retention as set forth herein and other terms and conditions of this
Agreement.

     The liability of the REINSURER shall be subject in all respects to all
general and specific stipulation, clauses, waivers, extensions, modifications
and endorsements of any of the COMPANY'S Policies, subject to the other terms
and conditions of this Agreement as set forth herein.

     Should any regulatory or other legal restriction of any state require a
modification of any Policy to which this Agreement applies, the liability of the
REINSURER shall follow that of the COMPANY under all other terms and conditions
of this agreement.

                                        2
<PAGE>

ARTICLE ELEVEN -- ERRORS AND OMISSIONS

     Inadvertent delays, errors or omissions made in connection with this
Agreement shall not relieve either party from any liability which would have
attached had such delay, error or omission not occurred, provided that such
error or omission shall be rectified as soon as commercially reasonable after
discovery by the COMPANY or the REINSURER.

ARTICLE TWELVE -- CEDING COMMISSION

     The COMPANY shall receive a commission allowance of twenty three percent
(23%) of the direct written premium of the Policies subject to this Agreement.

ARTICLE THIRTEEN -- REPORTS AND REMITTANCES

     The COMPANY shall render a monthly bordereau account within thirty (30)
days after each calendar month end. This account shall summarize premiums,
return premiums, allowances for commissions, losses paid, and loss adjustment
expenses paid and salvage recovered. The account shall also reflect the net
balance due by either party. The net balance due by either party shall be paid
by the debtor party within thirty (30) days from the date of the report.
Reinsurer acknowledges that the Company and Ranger Insurance Company ("Ranger"),
an affiliated company of Reinsurer, have entered or will enter into a producer
agreement ("Producer Agreement") pursuant to which Ranger will provide agency
services to North River for the public entity business reinsured by this
Agreement. Reinsurer agrees that the monthly bordereau discussed above will net
both the premiums, commission, paid loss and loss adjustment expenses, under the
Producer Agreement and the reinsurance bordereau pursuant to this Agreement. A
single accounting statement will be provided to Reinsurer.

ARTICLE FOURTEEN -- ARBITRATION

     Any and all disputes arising out of or relating to this Agreement shall be
submitted for resolution to an independent arbitrator mutually agreed to by the
COMPANY and the REINSURER, upon the written request of the COMPANY or the
REINSURER. If the parties are unable to mutually agree upon an arbitrator within
ten (10) calendar days after delivery of a written request for arbitration, the
COMPANY and the Reinsurer shall each nominate three (3) individuals who have
never been affiliated with any of the parties and who are present or former
executive officers of an insurance or reinsurance company and decline two (2) of
the three (3) individuals nominated by the other, and the list of the remaining
nominees shall be submitted to a court of competent jurisdiction and the court
shall select the arbitrator from among the names submitted. If a party fails to
nominate three (3) individuals within thirty (30) calendar days after being
requested to do so, the other party shall also appoint the second arbitrator and
the two arbitrators shall select the third arbitrator. If the two arbitrators
fail to agree upon the appointment of a third arbitrator within thirty (30)
calendar days after their nominations, the third arbitrator shall be chosen by
the manager of the American Arbitration Association and such third arbitrator
shall be a person who is an active or retired disinterested officer of an
insurance or reinsurance company.

     Each party shall submit its case to the arbitrator(s) within thirty (30)
calendar days after the date of appointment of the arbitrator(s). The
arbitrator(s) shall make its determination with regard to the custom and usage
of the insurance and reinsurance business and render a written decision solely
as to the issue presented in the notice of arbitration within sixty (60)
calendar days after such submission. The majority decision of the arbitrators
shall be final and binding in all respects upon all parties hereto. Judgment
upon any award may only be entered in a Federal court of competent jurisdiction
located in the State of New Jersey; provided, however, that if such judgment
cannot be entered in such a Federal court expeditiously, such judgment only then
may be entered in a state court of competent jurisdiction located in the State
of New Jersey. Arbitration hereunder shall take place in New Jersey unless the
COMPANY and the REINSURER agree otherwise. Except as otherwise provided herein,
the COMPANY and the REINSURER shall jointly and equally bear the costs, fees,
disbursements and other expenses of the arbitrator.

     It is agreed that the jurisdiction of the arbitrators to make or render any
decision or award shall be limited by the limit of liability expressly herein
before set forth, and that the arbitrators shall have no jurisdiction to make
any decision or render any award exceeding such expressly stated limit of
liability of the REINSURER, nor do
                                        3
<PAGE>

they have the jurisdiction to authorize any punitive, exemplary or consequential
damage awards between the parties hereto.

ARTICLE FIFTEEN -- INSOLVENCY

     In the event of the insolvency, liquidation or rehabilitation of the
COMPANY or the appointment of a conservator, receiver, liquidator or statutory
successor of the COMPANY, an allocable portion of the reinsurance coverage
provided hereunder shall be payable by the REINSURER directly to the COMPANY or
to its conservator, receiver, liquidator or statutory successor, on the basis of
the liability of the COMPANY without diminution because of such insolvency,
liquidation, rehabilitation or appointment or because such conservator,
liquidator or statutory successor has failed to pay all or a portion of any
claims. In any such event, such reinsurance coverage shall be payable
immediately upon demand, with reasonable provision for verification, on the
basis of claims allowed against the COMPANY by any court of competent
jurisdiction or by any conservator, receiver, liquidator or statutory successor.
In any such event, the conservator, receiver, liquidator or statutory successor
of the COMPANY shall give written notice to the REINSURER of the pendency of
each claim against the COMPANY on the Policies within a reasonable time after
each such claim is filed in the insolvency, liquidation or rehabilitation
proceeding. During the pendency of any such claim, the REINSURER may, at its own
expense, investigate such claim and interpose in the proceeding in which such
claim is to be adjudicated any defense or defenses which the REINSURER may
reasonably deem available to the COMPANY or its conservator, receiver,
liquidator or statutory successor. The expenses incurred in connection therewith
by the REINSURER shall be chargeable, subject to court approval, against the
COMPANY as part of the expense of such insolvency, liquidation or rehabilitation
to the extent of any benefit which accrues to the COMPANY solely as a result of
the defense or defenses undertaken by the REINSURER.

ARTICLE SIXTEEN -- OFFSET

     The COMPANY and the REINSURER may offset any balance or amount due from one
party to the other under the terms of this Agreement. The party asserting the
right of offset may exercise such right at any time with written approval from
the COMPANY, whether the balances due are related to premiums or losses. In the
event of insolvency of either party, the right of offset shall only be allowed
in accordance with the provisions of the controlling insurance law.

ARTICLE SEVENTEEN -- CURRENCY

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

ARTICLE EIGHTEEN -- ASSIGNMENT

     This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and permitted assigns. Neither
this Agreement nor any right hereunder may be assigned by any party without the
prior written consent of the other party affected thereby, which consent shall
not be unreasonably withheld.

ARTICLE NINETEEN -- REGULATORY APPROVALS

     This Agreement may be subject to the non-disapproval or approval of certain
state insurance departments and, if so, may be subject to such terms and
conditions thereof as may be required by such state insurance departments to
alter or amend this agreement. Any amendments thereof, shall not change the
substance and or intent to this Agreement and the parties shall deem the
amendments acceptable.

ARTICLE TWENTY -- BOOKS AND RECORDS

     The COMPANY and the REINSURER and their respective duly authorized
representatives shall, at all reasonable times, each be permitted access to all
books and records of the other pertaining to the Policies reinsured pursuant to
the provisions of this Agreement.
                                        4
<PAGE>

ARTICLE TWENTY-ONE -- COUNTERPARTS

     This Agreement may be executed in multiple counterparts, each of which
shall be deemed an original for all purposes and all of which shall be deemed,
collectively, one and the same instrument and agreement.

ARTICLE TWENTY-TWO -- GOVERNING LAW

     This Agreement shall be governed by and construed in accordance with the
laws of the State of New Jersey without regard to its principles of choice of
law.

ARTICLE TWENTY-THREE -- HEADINGS

     The headings of the Articles and paragraphs herein are inserted for
convenience of reference only and are not intended to be part of or to affect
the meaning or interpretation of this Agreement.

ARTICLE TWENTY-FOUR -- ENTIRE AGREEMENT, AMENDMENTS AND WAIVERS

     This Agreement constitutes the entire agreement between the parties
pertaining to the subject matter hereof and supersedes all prior agreements,
understandings, negotiations and discussions, whether oral or written, between
the parties hereto. No supplement, modification, amendment or waiver of this
Agreement shall be binding unless executed in writing by the party to be bound
thereby. No waiver of any of the provisions of this Agreement shall be deemed or
shall constitute a waiver of any other provision hereof (whether or not
similar), nor shall such waiver constitute a continuing waiver unless otherwise
expressly provided.

ARTICLE TWENTY-FIVE -- VALIDITY AND ENFORCEABILITY OF AGREEMENT

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

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed on their behalf by their respective officers hereunto duly authorized
as of the date first written above.

<Table>
<S>                                                <C>

The North River Insurance Company                  Ranger Insurance Company
By:      /s/ RICHARD LUTENSKI                      By:      /s/ JERRY B. MACKEY
    ----------------------------------------       ----------------------------------------
Name:   Richard Lutenski                           Name:   Jerry B. Mackey
-------------------------------------              -------------------------------------
Title:    CFO                                      Title:    CVO
---------------------------------------            ---------------------------------------
</Table>

                                        5

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