Document:

PRIVATE PASSENGER AUTOMOBILE

QUOTA SHARE REINSURANCE CONTRACT

 

issued to

 

HOMEOWNERS OF AMERICA INSURANCE COMPANY

Irving, Texas

including any and/or all companies that
are or may hereafter become affiliated therewith

 

    	 

    	 

    

 

PRIVATE PASSENGER AUTOMOBILE 

QUOTA SHARE REINSURANCE CONTRACT

 

TABLE OF CONTENTS

 

	Article	 	 	 	Page
	 	 	 	 	 
	 	 	Preamble	 	4
	1	 	Business Covered	 	4
	2	 	Retention and Limit	 	5
	3	 	Loss Corridor	 	6
	4	 	Term and Termination	 	6
	5	 	Special Termination	 	7
	6	 	Territory	 	8
	7	 	Exclusions	 	8
	8	 	Premium	 	9
	9	 	Other Reinsurance	 	10
	10	 	Ceding Commission	 	10
	11	 	Contingent Commission	 	10
	12	 	Reports and Remittances	 	11
	13	 	Definitions	 	12
	14	 	Run-Off Reinsurer	 	13
	15	 	Extra Contractual Obligations/Excess of Policy Limits	 	15
	16	 	Net Retained Liability	 	16
	17	 	Original Conditions	 	16
	18	 	No Third Party Rights	 	16
	19	 	Loss Settlements	 	17
	20	 	Late Payments	 	17
	21	 	Salvage and Subrogation	 	19
	22	 	Currency	 	19
	23	 	Unauthorized Reinsurance	 	19
	24	 	Assessments, Assignments, Fines and Penalties	 	22
	25	 	Taxes	 	22
	26	 	Access to Records	 	23
	27	 	Confidentiality	 	23
	28	 	Indemnification and Errors and Omissions	 	24
	29	 	Insolvency	 	24
	30	 	Arbitration	 	26
	31	 	Service of Suit	 	27
	32	 	Agency	 	28
	33	 	Governing Law	 	28
	34	 	Entire Agreement	 	28
	35	 	Intermediary	 	28
	36	 	Mode of Execution	 	29

 

    	 

    	 

    

 

PRIVATE PASSENGER AUTOMOBILE

 

QUOTA SHARE REINSURANCE CONTRACT

 

TABLE OF CONTENTS

 

	Articles	 	 	 	
	(Cont’d)	 	 	 	Page
	 	 	 	 	 
	 	 	Company Signing Block	 	29
	Attachments	 	 	 	 
	 	 	Nuclear Incident Exclusion Clause - Physical Damage - Reinsurance - U.S.A.	 	30
	 	 	Nuclear Incident Exclusion Clause - Liability - Reinsurance - U.S.A	 	32
	 	 	Pools, Associations and Syndicates Exclusion Clause	 	37
	 	 	Trust Agreement Requirements Clause	 	40

  

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PRIVATE PASSENGER AUTOMOBILE QUOTA SHARE

REINSURANCE CONTRACT

(the “Contract”)

 

issued to

 

HOMEOWNERS OF AMERICA INSURANCE COMPANY

Irving, Texas

including any and/or all companies that
are or may hereafter become affiliated therewith

(collectively, the “Company”)

 

by

 

THE SUBSCRIBING REINSURER(S) IDENTIFIED

IN THE INTERESTS AND LIABILITIES AGREEMENT(S)

ATTACHED TO AND FORMING PART OF THIS
CONTRACT 

(the “Reinsurer”)

 

PREAMBLE

 

Wherever the term “Company” is used in this Contract,
such term shall be held to include any and/or all of the subsidiary insurance companies which are or may hereafter come under the
management of the Company, provided that notice be given to the Reinsurer of any such subsidiary companies which may hereafter
come under the management of the Company within 60 days of attaching hereunder, with full particulars as to how such inclusion
is likely to affect this Contract. In the event that either party maintains that such inclusion calls for alterations in existing
terms and agreement on these terms cannot be reached, the business of such included companies is covered for a period of 90 days
after notice to the other party that the dissenting party does not with to cover the business included.

 

ARTICLE
1

 

BUSINESS COVERED

 

		A.	This Contract is to indemnify the Company in respect of the liability that may accrue to the Company
as a result of loss or losses under Policies classified by the Company as Private Passenger Automobile Liability and Physical Damage
business, emanating from the State of Texas, written or renewed during the term of this Contract by or on behalf of the Company,
subject to the terms and conditions herein contained.

 

		B.	Business reinsured under this Contract is deemed to include coverages extended for non¬resident
drivers under the Motor Vehicle Financial Responsibility Law or the Motor Vehicle Compulsory Insurance Law, or any similar law
of any state or province, following the provisions of the Company’s Policies when they include or are deemed to include so
called “out of state insurance” provisions.

 

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ARTICLE
2

 

RETENTION AND LIMIT

 

		A.	The Company shall cede, and the Reinsurer shall accept as reinsurance, a 50% share of all business
reinsured hereunder. The Reinsurer shall pay to the Company the Reinsurer’s quota share of loss under the Policies and any
assessments covered under this Contract.

 

		B.	In addition to the liability set forth in paragraph A above, the Reinsurer shall also pay to the
Company the following:

 

		1.	the Reinsurer’s quota share of Extra Contractual Obligations and Loss in Excess of Policy
Limits covered hereunder; however, the Reinsurer’s liability under this Contract as respects Extra Contractual Obligations
and Loss in Excess of Policy Limits combined shall not exceed $250,000 (being 50% of $500,000) any one Occurrence, and further
subject to an amount not to exceed $500,000 (being 50% of $1,000,000) as respects all Extra Contractual Obligations and Loss in
Excess of Policy Limits subject to this Contract;

 

		2.	the Reinsurer’s quota share of Legal Defense Costs, which shall not exceed 2% of ceded Gross
Net Earned Premium Income;

 

		3.	an amount representing ceded loss adjustment expense (excluding Legal Defense Costs) equal to 8%
of ceded Gross Net Earned Premium Income.

 

		C.	The maximum Policy limits offered on subject business are as follows, or so deemed:

 

		1.	Bodily Injury Liability: $100,000 each person, $300,000 each occurrence;

 

		2.	Property Damage Liability: $100,000 each occurrence;

 

		3.	Automobile Physical Damage: $60,000 each occurrence.

 

The amounts shown above shall be extended to follow
the liability of the Company in the event of the stacking of policy limits, or if the Company is required by statute, regulation
or by an order of an insurance department to increase the minimum required coverage limits.

 

		D.	The Reinsurer’s liability hereunder, as respects any one Occurrence, shall not exceed $875,000
(being 50% of $1,750,000). This Occurrence limit is inclusive of all loss, Extra Contractual Obligations, Loss in Excess of Policy
Limits, loss adjustment expenses, Legal Defense Costs and any assessments with respect to each Occurrence.

 

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		E.	In the event the Company is required to offer higher limits to individual risks under private passenger
assigned risk pools, plans, and other residual market mechanisms, such higher limits shall be deemed to be statutory in compliance
with the terms of this Contract and the Reinsurer’s liability shall also include its proportion of those limits greater than
the financial responsibility limits in effect.

 

ARTICLE
3

 

LOSS CORRIDOR

 

		A.	Notwithstanding the provisions of the Retention and Limit Article, the Company shall retain the
amount by which Losses Incurred exceed 90% of ceded Gross Net Earned Premium Income, subject to a maximum additional retention
equal to 15% of ceded Gross Net Earned Premium Income.

 

		B.	Said additional retention shall be called the “Loss Corridor,” and shall be calculated
and paid (based on paid losses, Legal Defense Costs, loss adjustment expenses, Extra Contractual Obligations, Loss in Excess of
Policy Limits, and assessments) concurrently with contingent commission calculations.

 

ARTICLE
4

 

TERM AND TERMINATION

 

		A.	This Contract shall take effect on June 1, 2011, and shall remain in force until May 31, 2012,
in respect of Policies written or renewed during the term of this Contract.

 

		B.	However, this Contract may be terminated on November 30, 2011, or February 29, 2012, by either
party giving the other party 45 days’ prior written notice.

 

		C.	At the expiration or termination of this Contract, the Reinsurer shall remain liable for all Policies
covered by this Contract that are in force at expiration or termination, until the termination, expiration or renewal of such Policies,
whichever occurs first but not to extend beyond 12 months after expiration or termination of this Contract.

 

However,
this Contract shall remain in force and effect, and the Reinsurer shall remain liable with respect to any Policy the Company is
required to issue, renew, or keep in force by any state regulatory authority having jurisdiction over subject business until the
first time the Company can lawfully cancel or non-renew such Policies. The maximum Policy period for subject Policies shall be
deemed to be 12 months plus odd time, not to exceed 18 months in all.

 

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		D.	Notwithstanding the provisions of paragraph C above, the Company shall have the option to require
a return of the ceded unearned premium, net of ceding commission, on business in force at expiration or termination, provided the
Company so notifies the Reinsurer prior to or as promptly as possible after the date of expiration or termination. In such event,
the Reinsurer shall be released from liability for losses occurring after expiration or termination.

 

ARTICLE
5

 

SPECIAL TERMINATION

 

		A.	The Company may terminate a Subscribing Reinsurer’s percentage share in this Contract at
any time by giving written notice to the Subscribing Reinsurer in the event of any of the following circumstances:

 

		1.	The Subscribing Reinsurer ceases underwriting operations.

 

		2.	A state insurance department or other legal authority orders the Subscribing Reinsurer to cease
writing business, or the Subscribing Reinsurer is placed under regulatory supervision.

 

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

 

		4.	The Subscribing Reinsurer’s policyholders’ surplus (or the equivalent under the Subscribing
Reinsurer’s accounting system) as reported in such financial statements of the Subscribing Reinsurer as designated by the
Company, has been reduced by 30% of the amount thereof at any date during the term of this Contract.

 

		5.	The Subscribing Reinsurer has merged with or has become acquired or controlled by any company,
corporation, or individual(s) not controlling the Subscribing Reinsurer’s operations at the inception of this Contract.

 

		6.	The Subscribing Reinsurer has retroceded its entire liability under this Contract without the Company’s
prior written consent.

 

		7.	The Subscribing Reinsurer has been assigned an A.M. Best’s rating of less than “A-”
and/or an S&P rating of less than “BBB+.” However, as respects Underwriting Members of Lloyd’s, London, a
Lloyd’s Market Rating of less than “A-” by A. M. Best and/or less than “BBB+” by S&P shall apply.

 

    	- 7 -

    	 

    

 

		B.	Termination shall be effected on a run-off or cut-off basis as set forth in the Term and Termination
Article, at the sole discretion of the Company. The reinsurance premium due the Subscribing Reinsurer hereunder shall be prorated
based on the period of the Subscribing Reinsurer’s participation hereon, and the Subscribing Reinsurer shall immediately
return any excess or unearned reinsurance premium received, as applicable.

 

		C.	Additionally, in the event of any of the circumstances listed in paragraph A of this Article, the
Company shall have the option to commute the Subscribing Reinsurer’s liability for losses on Policies covered by this Contract.
In the event the Company and the Subscribing Reinsurer cannot agree on the commutation amount, they shall appoint an actuary and/or
appraiser to assess such amount and shall share equally any expense of the actuary and/or appraiser. If the Company and the Subscribing
Reinsurer cannot agree on an actuary and/or appraiser, the Company and the Subscribing Reinsurer each shall nominate three individuals,
of whom the other shall decline two, and the final appointment shall be made by drawing lots. Payment by the Subscribing Reinsurer
of the amount of liability ascertained shall constitute a complete and final release of both parties in respect of liability arising
from the Subscribing Reinsurer’s participation under this Contract.

 

		D.	The Company’s option to require commutation under paragraph C above shall survive the termination
or expiration of this Contract.

 

ARTICLE
6

 

TERRITORY

 

The territorial limits of this Contract shall be identical with
those of the Company’s Policies, but shall be limited to Policies emanating from the State of Texas.

 

ARTICLE
7

 

EXCLUSIONS

 

The following risks and kinds of insurance are excluded from
coverage under this Contract and no loss or losses thereon shall be recoverable hereunder:

 

		1.	Nuclear Energy risks as set forth in the attached Nuclear Incident Exclusion Clause - Physical
Damage - Reinsurance - U.S.A. and Nuclear Incident Exclusion Clause - Liability - Reinsurance - U.S.A.

 

		2.	Pools, Syndicates or Associations as set forth in the attached “Pools, Associations and Syndicates
Exclusion Clause.”

 

    	- 8 -

    	 

    

 

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

 

		4.	Commercial Auto and Umbrella or Excess business.

 

		5.	Vehicles knowingly insured by the Company at the time they are accepted as risks by the Company
that are engaged in any of the following activities:

 

		a.	Emergency or public livery use.

 

		b.	Used to transport persons or property for compensation or a fee (but not excluding so-called share-the-expense
car pooling).

 

		c.	Used in pre-arranged or organized racing, speed, or demolition contests.

 

		d.	Used to transport explosives, fireworks or flammable substances.

 

		6.	Assumed reinsurance.

 

		7.	Financial Guarantees.

 

		8.	Participation in any insolvency or guarantee fund, except as provided for in the Assessments, Assignments,
Fines and Penalties Article.

 

ARTICLE
8

 

PREMIUM

 

		A.	The Company shall cede to the Reinsurer its exact proportion of the Gross Net Written Premium Income
received by the Company for business subject hereto, less commission allowed thereon.

 

		B.	Notwithstanding the provisions of paragraph A above, in the event the Company’s Gross Net
Written Premium Income received exceeds $5,000,000, the percentage of the Company’s liability ceded hereunder shall be reduced
to the portion that 50% of $5,000,000 bears to the Company’s total Gross Net Written Premium Income received.

 

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ARTICLE
9

 

OTHER REINSURANCE

 

The Company may purchase other treaty reinsurance, recoveries
under which shall inure to the sole benefit of the Company. Additionally, the Company may purchase facultative reinsurance on any
subject risk it deems advisable, recoveries under which shall inure to the benefit of this Contract.

 

ARTICLE
10

 

CEDING COMMISSION

 

The Reinsurer shall allow the Company a 20% commission on all
premiums ceded to the Reinsurer hereunder. The Company shall allow the Reinsurer return commission on return premiums at the same
rate.

 

ARTICLE
11

 

CONTINGENT COMMISSION

 

		A.	Within 24 months following the expiration or termination of this Contract, and annually thereafter
until all losses allocated to this Contract are settled, a contingent commission calculation shall be prepared by the Company in
accordance with the following, and a contingent commission, if any, paid to the Company by the Reinsurer.

 

		1.	“Income” means the Reinsurer’s earned premium under this Contract.

 

		2.	“Outgo” means the sum of:

 

		a.	Losses Incurred, plus

 

		b.	The outstanding case reserves of the Reinsurer on losses, Legal Defense Costs, loss adjustment
expense, Extra Contractual Obligations and Loss in Excess of Policy Limits on losses allocated to this Contract,

 

		c.	plus any assessments, paid or outstanding, made against the Company and allocable to this Contract,
plus

 

		d.	Ceding commission on Income, plus

 

		e.	The Reinsurer’s expense allowance of 10% of Income.

 

		B.	The contingent commission shall be 50% of the amount by which Income exceeds Outgo.

 

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		C.	For purposes of calculating the contingent commission, any amount retained by the Company under
the Loss Corridor provision shall be deducted from Losses Incurred.

 

ARTICLE
12

 

REPORTS AND REMITTANCES

 

		A.	Within 30 days following the end of each month, the Company shall furnish the Reinsurer with a
report summarizing the following:

 

		1.	ceded Gross Net Written Premium Income during the month;

 

		2.	ceded Gross Net Written Premium Income collected during the month;

 

		3.	ceding commission on (2) above;

 

		4.	ceded paid losses, Extra Contractual Obligations, Loss in Excess of Policy Limits and assessments
for the month (net of any recoveries during the month in accordance with the “cash call” provisions of the Loss Settlements
Article);

 

		5.	ceded loss adjustment expense at 8% of ceded Gross Net Earned Premium Income for the month;

 

		6.	ceded paid Legal Defense Costs ascribed to this Contract during the month, not to exceed 2% of
Gross Net Earned Premium Income subject to this Contract;

 

		7.	the Reinsurer’s share of subrogation, salvage or other recoveries;

 

		8.	ceded unearned premium as of the end of the month, and;

 

		9.	ceded outstanding loss, Legal Defense Costs, loss adjustment expense, Extra Contractual Obligations,
Loss in Excess of Policy Limits and assessment reserves (including incurred but not reported loss reserves) as of the end of the
month.

 

The balance due shall be equal to (2) less (3), and
less (4), less (5), less (6), plus (7). Any positive balance shown to be due the Reinsurer shall be remitted by the Company within
60 days after the end of the month of account. Any negative balance shown to be due the Company shall be remitted by the Reinsurer
as promptly as possible after receipt of the Company’s report, not to exceed 15 days.

 

		B.	Additionally, the Company shall furnish the Reinsurer with such information as the Reinsurer may
require completing its financial statements.

 

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ARTICLE
13

 

DEFINITIONS

 

		A.	“Legal Defense Costs” shall include the following:

 

		1.	medical examination of claimants, including the reasonable and necessary transportation expenses
of the claimants;

 

		2.	reports from attending or examining physicians;

 

		3.	court reporter services and transcripts;

 

		4.	stenographic services and transcripts;

 

		5.	witness attendance fees;

 

		6.	court costs;

 

		7.	translator fees;

 

		8.	printing costs related to trials and appeals;

 

		9.	testimony, opinion, appraisals, reports, surveys, and analysis of professionals and experts;

 

		10.	reports from government agencies and branches;

 

		11.	credit bureau reports;

 

		12.	private investigators;

 

		13.	photographs;

 

		14.	medical cost containment services, including utilization review, pre-admission authorization, hospital
bill audit, and medical case management, in each case incurred at the request of the Company;

 

		15.	extraordinary claim investigation and/or travel expense incurred at the request of the Company;

 

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		16.	any similar service related to the investigation and defense of a particular claim, or the protection
of the subrogation rights of the Company, for which the Company shall have given prior approval;

 

		17.	attorneys’ fees and disbursements for both defendants and plaintiffs;

 

		18.	appeal bonds; and

 

		19.	trial, mediation and hearing attendance fees.

 

		B.	“Occurrence” means each accident, casualty, disaster or loss, or series of accidents,
casualties, disasters or losses, arising out of or caused by one event. The Company shall be the sole judge as to what constitutes
one event.

 

		C.	“Gross Net Written Premium Income” means gross written premium of the Company for the
classes of business reinsured hereunder (excluding Policy and billing fees, if any), less return premiums, and less premiums ceded
by the Company for reinsurance that inures to the benefit of this Contract.

 

		D.	“Gross Net Earned Premium Income” means gross earned premium of the Company for the
classes of business reinsured hereunder (excluding Policy and billing fees, if any), less the

 

		E.	earned portion of premiums ceded by the Company for reinsurance that inures to the benefit of this
Contract.

 

		F.	“Losses Incurred” means ceded losses, Legal Defense Costs, loss adjustment expense,
Extra Contractual Obligations and Loss in Excess of Policy Limits paid by the Reinsurer on losses allocated to this Contract, plus
any assessments paid that were made against the Company and allocable to this Contract.

 

		G.	“Policy” means any binder, policy, or contract of insurance issued, accepted or held
covered provisionally or otherwise, by or on behalf of the Company.

 

ARTICLE
14

 

RUN-OFF REINSURER

 

		A.	“Run-off Reinsurer” means any Subscribing Reinsurer that:

 

		1.	has been ordered by a state insurance department or other legal authority to cease writing business,
or has been placed under regulatory supervision or in rehabilitation; or

 

    	- 13 -

    	 

    

 

		2.	has ceased reinsurance underwriting operations; or

 

		3.	has transferred its claims-paying authority to an unaffiliated entity; or

 

		4.	in any other way has assigned its interests or delegated its obligations under this Contract to
an unaffiliated entity.

 

		B.	Notwithstanding any other provision of this Contract, in the event that a Subscribing Reinsurer
becomes a Run-off Reinsurer at any time, the Company may elect, by giving written notice to the Run-off Reinsurer at any time thereafter,
that all or any of the following shall apply to the Run-off Reinsurer’s participation hereunder:

 

		1.	If the Run-off Reinsurer does not pay a claim or raise a query concerning the claim within 30 days
of billing, it shall be estopped from denying such claim and must pay immediately.

 

		2.	If payment of any claim has been received from Subscribing Reinsurers constituting at least 70%
of the interests and liabilities of all Subscribing Reinsurers that participated on this Contract and are active as of the due
date; it being understood that said date shall not be later than 90 days from the date of transmittal by the Intermediary of the
initial billing for each such payment, the Run-off Reinsurer shall be estopped from denying such claim and must pay within 10 days
following transmittal to the Run-off Reinsurer of written notification of such payments. For purposes of this subparagraph, a Subscribing
Reinsurer shall be deemed to be active if it is not a Run-off Reinsurer.

 

		3.	Should the Run-off Reinsurer refuse to pay claims as required by the subparagraphs 1 and/or 2 above,
the interest penalty specified in the Late Payments Article shall be increased by 0.5% for each 30 days that a payment is past
due, subject to a maximum increase of 7.0%.

 

		4.	The Run-off Reinsurer’s liability for losses for Policies covered by this Contract shall
be commuted. In the event the Company and the Run-off Reinsurer cannot agree on the commutation amount, they shall appoint an actuary
and/or appraiser to assess such amount and shall share equally any expense of the actuary and/or appraiser. If the Company and
the Run-off Reinsurer cannot agree on an actuary and/or appraiser, the Company and the Run-off Reinsurer each shall nominate three
individuals, of whom the other shall decline two, and the final appointment shall be made by drawing lots. Payment by the Run-off
Reinsurer of the amount of liability ascertained shall constitute a complete and final release of both parties under this Contract.

 

    	- 14 -

    	 

    

 

		5.	The Company has the option to require the Run-off Reinsurer to immediately provide funding of liabilities
(the “Reinsurer’s Obligations”) as set forth in the Unauthorized Reinsurance Article. This paragraph does not
apply to any Run-off Reinsurer to the extent that the Run-off Reinsurer provides funding under the Unauthorized Reinsurance Article
or maintains a trust fund, approved by the regulatory authorities having jurisdiction over the Company’s credit for reinsurance,
for the payment of claims of the Run-off Reinsurer’s U.S. ceding insurers.

 

		6.	In the event of arbitration between the Company and the Run-off Reinsurer regarding a claim under
this Contract, the arbitration panel must award costs of all arbitrators and expenses against the losing party.

 

		C.	The Company’s waiver of any rights provided in this Article is not a waiver of that right
or other rights at a later date.

 

ARTICLE
15

 

EXTRA CONTRACTUAL OBLIGATIONS/EXCESS OF POLICY LIMITS

 

		A.	This Contract shall cover the Reinsurer’s share of any Extra Contractual Obligations and
Loss in Excess of Policy Limits, as provided in the Retention and Limit Article.

 

		B.	“Extra Contractual Obligations” shall be defined as those liabilities not covered under
any other provision of this Contract and that arise from the handling of any claim on business covered hereunder, such liabilities
arising because of, but not limited to, the following: failure by the Company to settle within the Policy limit, or by reason of
alleged or actual negligence, fraud or bad faith in rejecting an offer of settlement or in the preparation of the defense or in
the trial of any action against its insured or reinsured or in the preparation or prosecution of an appeal consequent upon such
action.

 

		C.	“Loss in Excess of Policy Limits” shall be defined as Loss in excess of the Policy
limit, having been incurred because of, but not limited to, failure by the Company to settle within the Policy limit or by reason
of alleged or actual negligence, fraud or bad faith in rejecting an offer of settlement or in the preparation of the defense or
in the trial of any action against its insured or reinsured or in the preparation or prosecution of an appeal consequent upon such
action.

 

		D.	An Extra Contractual Obligation and/or Loss in Excess of Policy Limits shall be deemed to have
occurred on the same date as the loss covered under the Company’s Policy, and shall constitute part of the original loss.

 

		E.	For the purposes of the Loss in Excess of Policy Limits coverage hereunder, 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 original
Policy.

 

    	- 15 -

    	 

    

 

		F.	Loss adjustment expense and Legal Defense Costs in respect of Extra Contractual Obligations and/or
Loss in Excess of Policy Limits shall be covered hereunder in the same manner as other loss adjustment expense and Legal Defense
Costs.

 

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

 

		H.	In no event shall coverage be provided to the extent not permitted under law.

 

ARTICLE
16

 

NET RETAINED LIABILITY

 

		A.	This Contract applies only to that portion of any loss that the Company retains net for its own
account (prior to deduction of any reinsurance that inures solely to the benefit of the Company).

 

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

 

ARTICLE
17

 

ORIGINAL CONDITIONS

 

All reinsurance under this Contract shall be subject to the
same rates, terms, conditions, waivers and interpretations, and to the same modifications and alterations as the respective Policies
of the Company. However, in no event shall this be construed in any way to provide coverage outside the terms and conditions set
forth in this Contract.

 

ARTICLE
18

 

NO THIRD PARTY RIGHTS

 

This Contract is solely between the Company and the Reinsurer,
and in no instance shall any insured, claimant or other third party have any rights under this Contract except as may be expressly
provided otherwise herein.

 

    	- 16 -

    	 

    

 

ARTICLE
19

 

LOSS SETTLEMENTS

 

		A.	The Company alone and at its full discretion shall adjust, settle or compromise all claims and
losses.

 

		B.	As respects losses subject to this Contract, all loss settlements made by the Company, whether
under strict Policy terms or by way of compromise, and any Extra Contractual Obligations and/or Loss in Excess of Policy Limits
and assessments shall be binding upon the Reinsurer, and the Reinsurer agrees to pay or allow, as the case may be, its share of
each such settlement immediately upon receipt of proof of loss.

 

		C.	If the amount due from the Reinsurer as a result of any one loss, including Legal Defense Costs,
equals or exceeds $100,000, the Reinsurer shall, at the option and upon demand of the Company, pay such amount by special remittance
immediately upon receipt of a special loss account which shall be prepared by the Company and shall contain all relevant details
in connection with the loss.

 

ARTICLE
20

 

LATE PAYMENTS

 

		A.	In the event any payment due either party is not received by the Intermediary by the payment due
date, the party to whom payment is due may, by notifying the Intermediary in writing, require the debtor party to pay, and the
debtor party agrees to pay, an interest penalty on the amount past due calculated for each such payment on the last business day
of each month as follows:

 

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

 

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

 

		3.	The amount past due, including accrued interest.

 

Interest shall accumulate until payment of the original
amount due plus interest penalties have been received by the Intermediary.

 

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

 

    	- 17 -

    	 

    

 

		1.	Payments from the Reinsurer to the Company shall be due on the date on which the demand for payment
(including delivery of bordereaux or quarterly or monthly reports) is received by the Reinsurer, and shall be overdue 30 days thereafter.

 

		2.	Payments from the Company to the Reinsurer shall be due on the dates specified within this Contract.
Payments shall be overdue 30 days thereafter except for the first installment of premium, if applicable, which shall be overdue
60 days from inception or 30 days from final line-signing, whichever the later. Reinstatement premium, if applicable, shall have
as a due date the date when the Company receives payment for the claim giving rise to such reinstatement premium, and payment shall
be overdue 30 days thereafter. In the event a due date is not specifically stated for a given payment, the overdue date shall be
30 days following the date of billing.

 

		C.	If the information contained in the Company’s demand for payment is insufficient or not in
accordance with the conditions of this Contract, then within 30 days (or within three working days, as respects the special remittance
provision of paragraph C of the Loss Settlements Article) the Reinsurer shall request from the Company all additional information
necessary to validate its claim and the payment due date as defined in paragraph B shall be deemed to be the date upon which the
Reinsurer received the requested additional information. This paragraph is only for the purpose of establishing when a payment
is overdue, and shall not alter the provisions of the Loss Settlements Article or other pertinent contractual stipulations.

 

		D.	Should the Reinsurer dispute a claim presented by the Company and the timeframes set out in paragraph
B be exceeded, interest as stipulated in paragraph A shall be payable for the entire overdue period, but only for the amount of
the final settlement with the Reinsurer.

 

		E.	In the event arbitration is necessary to settle a dispute, the panel shall have the authority to
make a determination awarding interest to the prevailing party. Interest, if any, awarded by the panel shall supersede the interest
amounts outlined herein.

 

		F.	Any interest owed pursuant to this Article may be waived by the party to which it is owed. Waiver
of such interest, however, shall not affect the waiving party’s rights to other interest amounts due as a result of this
Article.

 

    	- 18 -

    	 

    

  

ARTICLE
21

 

SALVAGE AND SUBROGATION

 

		A.	Salvages and all recoveries (including amounts due under all reinsurances that inure to the benefit
of this Contract, whether recovered or not), shall be first deducted from any loss to arrive at the amount of liability attaching
hereunder.

 

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

 

ARTICLE
22

 

CURRENCY

 

		A.	Where the word “Dollars” and/or the sign “$” appear in this Contract, they
shall mean United States Dollars.

 

		B.	For purposes of this Contract, where the Company receives premiums or pays losses in currencies
other than United States Dollars, such premiums or losses shall be converted into United States Dollars at the actual rates of
exchange at which these premiums or losses are entered in the Company’s books.

 

ARTICLE
23

 

UNAUTHORIZED REINSURANCE

 

		A.	This Article applies only to a Subscribing Reinsurer who does not qualify for full credit with
any insurance regulatory authority having jurisdiction over the Company’s reserves.

 

		B.	The Company agrees, in respect of its Policies or bonds falling within the scope of this Contract,
that when it files with its insurance regulatory authority, or sets up on its books liabilities as required by law, it will forward
to the Reinsurer a statement showing the proportion of such liabilities applicable to the Reinsurer. The “Reinsurer’s
Obligations” shall be defined as follows:

 

		1.	unearned premium (if applicable);

 

		2.	known outstanding losses, Extra Contractual Obligations, Loss in Excess of Policy Limits and assessments
that have been reported to the Reinsurer, Legal Defense Costs relating thereto and loss adjustment expense;

 

    	- 19 -

    	 

    

  

		3.	losses, Legal Defense Costs, loss adjustment expense, Extra Contractual Obligations,

 

		4.	Loss in Excess of Policy Limits and assessments paid by the Company but not recovered from the
Reinsurer;

 

		5.	losses incurred but not reported and Legal Defense Costs related thereto;

 

		6.	all other amounts for which the Company cannot take credit on its financial statements unless funding
is provided by the Reinsurer.

 

		C.	The Reinsurer’s Obligations shall be funded by funds withheld, cash advances, Trust Agreement
or a Letter of Credit (LOC). The Reinsurer shall have the option of determining the method of funding provided it is acceptable
to the insurance regulatory authorities having jurisdiction over the Company’s reserves.

 

		D.	When funding by Trust Agreement, the Reinsurer shall ensure that the Trust Agreement complies with
the provisions of the “Trust Agreement Requirements Clause” attached hereto. When funding by an LOC, the Reinsurer
agrees to apply for and secure timely delivery to the Company of a clean, irrevocable and unconditional LOC issued by a bank and
containing provisions acceptable to the insurance regulatory authorities having jurisdiction over the Company’s reserves
in an amount equal to the Reinsurer’s Obligations. Such LOC shall be issued for a period of not less than one year, and shall
be automatically extended for one year from its date of expiration or any future expiration date unless 30 days (or such other
time period as may be required by insurance regulatory authorities), prior to any expiration date the issuing bank shall notify
the Company by certified or registered mail that the issuing bank elects not to consider the LOC extended for any additional period.

 

		E.	The Reinsurer and the Company agree that any funding provided by the Reinsurer pursuant to the
provisions of this Contract may be drawn upon at any time, notwithstanding any other provision of this Contract, and be utilized
by the Company or any successor, by operation of law, of the Company including, without limitation, any liquidator, rehabilitator,
receiver or conservator of the Company, for the following purposes, unless otherwise provided for in a separate Trust Agreement:

 

		1.	to reimburse the Company for the Reinsurer’s Obligations, the payment of which is due under
the terms of this Contract and that has not been otherwise paid;

 

		2.	to make refund of any sum that is in excess of the actual amount required to pay the Reinsurer’s
Obligations under this Contract (or in excess of 102% of the Reinsurer’s Obligations, if funding is provided by a Trust Agreement);

 

    	- 20 -

    	 

    

  

		3.	to fund an account with the Company for the Reinsurer’s Obligations. Such cash deposit shall
be held in an interest bearing account separate from the Company’s other assets, and interest thereon not in excess of the
prime rate shall accrue to the benefit of the Reinsurer. Any taxes payable on accrued interest shall be paid out of the assets
in the account that are in excess of the Reinsurer’s Obligations (or in excess of 102% of the Reinsurer’s Obligations,
if funding is provided by a Trust Agreement). If the assets are inadequate to pay taxes, any taxes due shall be paid by the Reinsurer;

 

		4.	to pay the Reinsurer’s share of any other amounts the Company claims are due under this Contract.

 

		F.	If the amount drawn by the Company is in excess of the actual amount required for E(1) or E(3),
or in the case of E(4), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount
so drawn. All of the foregoing shall be applied without diminution because of insolvency on the part of the Company or the Reinsurer.

 

		G.	The issuing bank shall have no responsibility whatsoever in connection with the propriety of withdrawals
made by the Company or the disposition of funds withdrawn, except to ensure that withdrawals are made only upon the order of properly
authorized representatives of the Company.

 

		H.	At annual intervals, or more frequently at the discretion of the Company, but never more frequently
than quarterly, the Company shall prepare a specific statement of the Reinsurer’s Obligations for the sole purpose of amending
the LOC or other method of funding, in the following manner:

 

		1.	If the statement shows that the Reinsurer’s Obligations exceed the balance of the LOC as
of the statement date, the Reinsurer shall, within 30 days after receipt of the statement, secure delivery to the Company of an
amendment to the LOC increasing the amount of credit by the amount of such difference. Should another method of funding be used,
the Reinsurer shall, within the time period outlined above, increase such funding by the amount of such difference.

 

		2.	If, however, the statement shows that the Reinsurer’s Obligations are less than the balance
of the LOC (or that 102% of the Reinsurer’s Obligations are less than the trust account balance if funding is provided by
a Trust Agreement), as of the statement date, the Company shall, within 30 days after receipt of written request from the Reinsurer,
release such excess credit by agreeing to secure an amendment to the LOC reducing the amount of credit available by the amount
of such excess credit. Should another method of funding be used, the Company shall, within the time period outlined above, decrease
such funding by the amount of such excess.

 

    	- 21 -

    	 

    

  

ARTICLE
24

 

ASSESSMENTS, ASSIGNMENTS, FINES AND PENALTIES

 

		A.	The provisions of this Contract shall apply to risks assigned to the Company under any Assigned
Risk Plan or similar plan if, in the opinion of the Company, such risks were assigned to the Company because of the business written
and reinsured hereunder.

 

		B.	The provisions of the quota share participation will apply to the proportion of any assessments
made against the Company pursuant to those laws and regulations creating obligatory funds (excluding insurance guaranty and insolvency
funds to the extent such costs are transferable to the policyholders), pools, joint underwriting associations, FAIR plans, and
similar plans; said proportion to be the proportion of the Company’s total premiums causing the assessment which were or
are subject to this Contract. All offsets from such assessments, if any, will pass through to the Reinsurer.

 

		C.	At the termination of this Contract, the provisions of the quota share participation shall continue
to apply until the Company may legally terminate its liability for assessments that are a result of the business reinsured hereunder.

 

ARTICLE
25

 

TAXES

 

		A.	In consideration of the terms under which this Contract is issued, the Company undertakes not to
claim any deduction of the premium hereon when making Canadian tax returns or when making tax returns, other than Income or Profits
Tax returns, to any state or territory of the United States of America or to the District of Columbia.

 

		1.	Each Subscribing Reinsurer has agreed to allow, for the purpose of paying the Federal Excise Tax,
the applicable percentage of the premium payable hereon (as imposed under the Internal Revenue Code) to the extent such premium
is subject to Federal Excise Tax.

 

		2.	In the event of any return of premium becoming due hereunder, the Subscribing Reinsurer shall deduct
the applicable percentage of the premium from the amount of the return, and the Company or its agent should take steps to recover
the Tax from the U.S. Government.

 

    	- 22 -

    	 

    

  

ARTICLE
26

 

ACCESS TO RECORDS

 

The Reinsurer or its duly authorized representatives shall have
the right to visit the offices of the Company to inspect, examine, audit, and verify any of the Policy, accounting or claim files
(“Records”) relating to business reinsured under this Contract during regular business hours after giving five working
days’ prior notice. This right shall be exercisable during the term of this Contract or after the expiration of this Contract.
Notwithstanding the above, the Reinsurer shall not have any right of access to the Records of the Company if it is not current
in all undisputed payments due the Company.

 

ARTICLE
27

 

CONFIDENTIALITY

 

		A.	The Reinsurer hereby acknowledges that the documents, information and data provided to it by the
Company, whether directly or through an authorized agent, in connection with the placement and execution of this Contract (“Confidential
Information”) are confidential to the Company. Confidential Information shall not include documents, information or data
that the Reinsurer can show:

 

		1.	are publicly known or have become publicly known through no unauthorized act of the Reinsurer;

 

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

 

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

 

		B.	Absent the written consent of the Company, the Reinsurer shall not disclose any Confidential Information
to any third parties, including any affiliated companies, except:

 

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

 

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

 

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

 

    	- 23 -

    	 

    

 

Further, the Reinsurer agrees not to use any Confidential
Information for any purpose not related to the performance of its obligations or enforcement of its rights under this Contract.

 

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

 

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

 

ARTICLE
28

 

INDEMNIFICATION AND ERRORS AND OMISSIONS

 

		A.	The Reinsurer is reinsuring, subject to the terms and conditions of this Contract, the obligations
of the Company under any Policy. The Company shall be the sole judge as to:

 

		1.	what shall constitute a claim or loss covered under any Policy;

 

		2.	the Company’s liability thereunder;

 

		3.	the amount or amounts that it shall be proper for the Company to pay thereunder.

 

		B.	The Reinsurer shall be bound by the judgment of the Company as to the obligation(s) and liability(ies)
of the Company under any Policy.

 

		C.	Any inadvertent error, omission or delay in complying with the terms and conditions of this Contract
shall not be held to relieve either party hereto from any liability that would attach to it hereunder if such error, omission or
delay had not been made, provided such error, omission or delay is rectified immediately upon discovery.

 

ARTICLE
29

 

INSOLVENCY

 

		A.	If more than one reinsured company is referenced within the definition of “Company”
in the Preamble to this Contract, this Article will apply severally to each such company. Further, this Article and the laws of
the domiciliary state will apply in the event of the insolvency of any company covered hereunder. In the event of a conflict between
any provision of this Article and the laws of the domiciliary state of any company covered hereunder, that domiciliary state’s
laws will prevail.

 

    	- 24 -

    	 

    

 

		B.	In the event of the insolvency of the Company, this reinsurance (or the portion of any risk or
obligation assumed by the Reinsurer, if required by applicable law) shall be payable directly to the Company, or to its liquidator,
receiver, conservator or statutory successor, either: (1) on the basis of the liability of the Company, or (2) on the basis of
claims filed and allowed in the liquidation proceeding, whichever may be required by applicable statute, without diminution because
of the insolvency of the Company or because the liquidator, receiver, conservator or statutory successor of the Company has failed
to pay all or a portion of any claim. It is agreed, however, that the liquidator, receiver, conservator or statutory successor
of the Company shall give written notice to the Reinsurer of the pendency of a claim against the Company indicating the Policy
or bond reinsured, which claim would involve a possible liability on the part of the Reinsurer within a reasonable time after such
claim is filed in the conservation or liquidation proceeding or in the receivership, and that during the pendency of such claim,
the Reinsurer may investigate such claim and interpose, at its own expense, in the proceeding where such claim is to be adjudicated
any defense or defenses that it may deem available to the Company or its liquidator, receiver, conservator or statutory successor.
The expense thus incurred by the Reinsurer shall be chargeable, subject to the approval of the court, against the Company as part
of the expense of conservation or liquidation to the extent of a pro rata share of the benefit that may accrue to the Company solely
as a result of the defense undertaken by the Reinsurer.

 

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

 

		D.	As to all reinsurance made, ceded, renewed or otherwise becoming effective under this Contract,
the reinsurance shall be payable as set forth above by the Reinsurer to the Company or to its liquidator, receiver, conservator
or statutory successor, (except as provided by Section 4118(a)(1)(A) of the New York Insurance Law, provided the conditions of
1114(c) of such law have been met, if New York law applies) or except (1) where the Contract specifically provides another payee
in the event of the insolvency of the Company, or (2) where the Reinsurer, with the consent of the direct insured or insureds,
has assumed such Policy obligations of the Company as direct obligations of the Reinsurer to the payees under such Policies and
in substitution for the obligations of the Company to such payees. Then, and in that event only, the Company, with the prior approval
of the certificate of assumption on New York risks by the Superintendent of Insurance of the State of New York, or with the prior
approval of such other regulatory authority as may be applicable, is entirely released from its obligation and the Reinsurer shall
pay any loss directly to payees under such Policy.

 

    	- 25 -

    	 

    

 

ARTICLE
30

 

ARBITRATION

 

		A.	Any dispute arising out of the interpretation, performance or breach of this Contract, including
the formation or validity thereof, shall be submitted for decision to a panel of three arbitrators. Notice requesting arbitration
shall be in writing and sent certified or registered mail, return receipt requested.

 

		B.	One arbitrator shall be chosen by each party and the two arbitrators shall then choose an impartial
third arbitrator who shall preside at the hearing. If either party fails to appoint its arbitrator within 30 days after being requested
to do so by the other party, the latter, after 10 days’ prior notice by certified or registered mail of its intention to
do so, may appoint the second arbitrator.

 

		C.	If the two arbitrators do not agree on a third arbitrator within 60 days of their appointment,
the third arbitrator shall be chosen in accordance with the procedures for selecting the third arbitrator in force on the date
the arbitration is demanded, established by the AIDA Reinsurance and Insurance Arbitration Society – U.S. (ARIAS). The arbitrators
shall be persons knowledgeable about insurance and reinsurance who have no personal or financial interest in the result of the
arbitration. If a member of the panel dies, becomes disabled or is otherwise unwilling or unable to serve, a substitute shall be
selected in the same manner as the departing member was chosen and the arbitration shall continue.

 

		D.	Within 30 days after all arbitrators have been appointed, the panel shall meet and determine timely
periods for briefs, discovery procedures and schedules of hearings.

 

		E.	The panel shall be relieved of all judicial formality and shall not be bound by the strict rules
of procedure and evidence. The arbitration shall take place in Irving, Texas, or at such other place as the parties shall agree.
The decision of any two arbitrators shall be in writing and shall be final and binding. The panel is empowered to grant interim
relief as it may deem appropriate.

 

		F.	The panel shall interpret this Contract as an honorable engagement rather than as merely a legal
obligation and shall make its decision considering the custom and practice of the applicable insurance and reinsurance business
as promptly as possible after the hearings. Notwithstanding anything to the contrary in this Contract, the arbitrators may at their
discretion, consider underwriting and placement information provided by the Company to the Reinsurer, as well as any correspondence
exchanged by the parties that is related to this Contract. Judgment upon an award may be entered in any court having jurisdiction
thereof.

 

    	- 26 -

    	 

    

 

		G.	Each party shall bear the expense of its own arbitrator and shall jointly and equally bear with
the other party the cost of the third arbitrator. The remaining costs of the arbitration shall be allocated by the panel. The panel
may, at its discretion, award such further costs and expenses as it considers appropriate, including but not limited to attorneys’
fees, to the extent permitted by law.

 

ARTICLE
31

 

SERVICE OF SUIT

 

		A.	This Article applies only to those Subscribing Reinsurers not domiciled in the United States of
America, and/or not authorized in any state, territory and/or district of the United States of America where authorization is required
by insurance regulatory authorities.

 

		B.	This Article shall not be read to conflict with or override the obligations of the parties to arbitrate
their disputes as provided for in the Arbitration Article. This Article is intended as an aid to compelling arbitration or enforcing
such arbitration or arbitral award, not as an alternative to the Arbitration Article for resolving disputes arising out of this
Contract.

 

		C.	In the event of the failure of the Reinsurer to perform its obligations hereunder, the Reinsurer,
at the request of the Company, shall submit to the jurisdiction of a court of competent jurisdiction within the United States.
Nothing in this Article constitutes or should be understood to constitute a waiver of the Reinsurer’s rights to commence
an action in any court of competent jurisdiction in the United States, to remove an action to a United States District Court, or
to seek a transfer of a case to another court as permitted by the laws of the United States or of any state in the United States.
The Reinsurer, once the appropriate court is selected, whether such court is the one originally chosen by the Company and accepted
by the Reinsurer or is determined by removal, transfer, or otherwise, as provided for above, shall comply with all requirements
necessary to give said court jurisdiction and, in any suit instituted against the Reinsurer upon this Contract, shall abide by
the final decision of such court or of any appellate court in the event of an appeal.

 

		D.	Service of process in such suit may be made upon Messrs. Mendes and Mount, 750 Seventh Avenue,
New York, New York 10019-6829, or another party specifically designated in the applicable Interests and Liabilities Agreement attached
hereto. The above-named are authorized and directed to accept service of process on behalf of the Reinsurer in any such suit.

 

		E.	Further, pursuant to any statute of any state, territory or district of the United States that
makes provision therefor, the Reinsurer hereby designates the Superintendent, Commissioner or Director of Insurance, or other officer
specified for that purpose in the statute, or his successor or successors in office, as its true and lawful attorney upon whom
may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the Company or any beneficiary
hereunder arising out of this Contract, and hereby designates the above-named as the person to whom the said officer is authorized
to mail such process or a true copy thereof.

 

    	- 27 -

    	 

    

 

ARTICLE
32

 

AGENCY

 

For purposes of sending and receiving notices and payments required
by this Contract, Homeowners of America Insurance Company shall be deemed the agent of all other reinsured Companies. In no event,
however, shall any reinsured Company be deemed the agent of another with respect to the terms of the Insolvency Article.

 

ARTICLE
33

 

GOVERNING LAW

 

This Contract shall be governed as to performance, administration
and interpretation by the laws of the State of Texas, exclusive of conflict of law rules. However, with respect to credit for reinsurance,
the rules of all applicable states shall apply.

 

ARTICLE
34

 

ENTIRE AGREEMENT

 

This Contract sets forth all of the duties and obligations between
the Company and the Reinsurer and supersedes any and all prior or contemporaneous written agreements with respect to matters referred
to in this Contract. This Contract may not be modified or changed except by an amendment to this Contract in writing signed by
both parties.

 

ARTICLE
35

 

INTERMEDIARY

 

Guy Carpenter & Company, LLC, is hereby recognized as the
Intermediary negotiating this Contract for all business hereunder. All communications (including notices, statements, premiums,
return premiums, commissions, taxes, losses, loss adjustment expense, salvages, and loss settlements) relating thereto shall be
transmitted to the Company or the Reinsurer through Guy Carpenter & Company, LLC, 3600 Minnesota Drive, Suite 400, Edina, Minnesota
55435. Payments by the Company to the Intermediary shall be deemed payment to the Reinsurer. Payments by the Reinsurer to the Intermediary
shall be deemed payment to the Company only to the extent that such payments are actually received by the Company.

 

    	- 28 -

    	 

    

 

ARTICLE
36

 

MODE OF EXECUTION

 

		A.	This Contract may be executed by:

 

		1.	an original written ink signature of paper documents;

 

		2.	an exchange of facsimile copies showing the original written ink signature of paper documents;

 

		3.	electronic signature technology employing computer software and a digital signature or digitizer
pen pad to capture a person’s handwritten signature in such a manner that the signature is unique to the person signing,
is under the sole control of the person signing, is capable of verification to authenticate the signature and is linked to the
document signed in such a manner that if the data is changed, such signature is invalidated.

 

		B.	The use of any one or a combination of these methods of execution shall constitute a legally binding
and valid signing of this Contract. This Contract may be executed in one or more counterparts, each of which, when duly executed,
shall be deemed an original.

 

IN WITNESS WHEREOF, the Company has
caused this Contract to be executed by its duly authorized representative(s) this _____ day of __________, in the year of _________.

 

HOMEOWNERS OF AMERICA INSURANCE COMPANY 

including any and/or all companies that
are or may hereafter become affiliated therewith 

 

 

PRIVATE PASSENGER AUTOMOBILE

QUOTA SHARE REINSURANCE CONTRACT

 

    	- 29 -

    	 

    

 

NUCLEAR INCIDENT EXCLUSION CLAUSE -
PHYSICAL DAMAGE - 

REINSURANCE - U.S.A.

 

		1.	This Reinsurance does not cover any loss or liability accruing to the Reassured, directly or indirectly,
and whether as Insurer or Reinsurer, from any Pool of Insurers or Reinsurers formed for the purpose of covering Atomic or Nuclear
Energy risks.

 

		2.	Without in any way restricting the operation of paragraph (1) of this clause, this Reinsurance
does not cover any loss or liability accruing to the Reassured, directly or indirectly and whether as Insurer or Reinsurer, from
any insurance against Physical Damage (including business interruption or consequential loss arising out of such Physical Damage)
to:

 

		I.	Nuclear reactor power plants including all auxiliary property on the site, or

 

		II.	Any other nuclear reactor installation, including laboratories handling radioactive materials in
connection with reactor installations, and “critical facilities” as such, or

 

		III.	Installations for fabricating complete fuel elements or for processing substantial quantities of
“special nuclear material”, and for reprocessing, salvaging, chemically separating, storing or disposing of “spent”
nuclear fuel or waste materials, or

 

		IV.	Installations other than those listed in paragraph (2) III above using substantial quantities of
radioactive isotopes or other products of nuclear fission.

 

		3.	Without in any way restricting the operations of paragraphs (1) and (2) hereof, this Reinsurance
does not cover any loss or liability by radioactive contamination accruing to the Reassured, directly or indirectly, and whether
as Insurer or Reinsurer, from any insurance on property which is on the same site as a nuclear reactor power plant or other nuclear
installation and which normally would be insured therewith except that this paragraph (3) shall not operate

 

		(a)	where Reassured does not have knowledge of such nuclear reactor power plant or nuclear installation,
or

 

		(b)	where said insurance contains a provision excluding coverage for damage to property caused by or
resulting from radioactive contamination, however caused. However on and after 1st January 1960 this sub-paragraph (b) shall only
apply provided the said radioactive contamination exclusion provision has been approved by the Governmental Authority having jurisdiction
thereof.

 

		4.	Without in any way restricting the operations of paragraphs (1), (2) and (3) hereof, this Reinsurance
does not cover any loss or liability by radioactive contamination accruing to the Reassured, directly or indirectly, and whether
as Insurer or Reinsurer, when such radioactive contamination is a named hazard specifically insured against.

 

    	- 30 -

    	 

    

 

		5.	It is understood and agreed that this clause shall not extend to risks using radioactive isotopes
in any form where the nuclear exposure is not considered by the Reassured to be the primary hazard.

 

		6.	The term “special nuclear material” shall have the meaning given it in the Atomic Energy
Act of 1954 or by any law amendatory thereof.

 

		7.	Reassured to be sole judge of what constitutes:

 

		(a)	substantial quantities, and

 

		(b)	the extent of installation, plant or site.

 

Note: Without in any way restricting the operation of
paragraph (1) hereof, it is understood and agreed that

 

		(a)	all policies issued by the Reassured on or before 31st December 1957 shall be free from the application
of the other provisions of this Clause until expiry date or 31st December 1960 whichever first occurs whereupon all the provisions
of this Clause shall apply.

 

		(b)	with respect to any risk located in Canada policies issued by the Reassured on or before 31st December
1958 shall be free from the application of the other provisions of this Clause until expiry date or 31st December 1960 whichever
first occurs whereupon all the provisions of this Clause shall apply.

 

12/12/57 

NMA 1119 

 

 

		NOTES:	Wherever used herein the terms:

 

		“Reassured”	shall be understood to mean “Company”, “Reinsured”, “Reassured” or whatever other term
is used in the attached reinsurance document to designate the reinsured company or companies.

 

		“Agreement”	shall be understood to mean “Agreement”, “Contract”, “Policy” or whatever other term is
used to designate the attached reinsurance document.

 

		“Reinsurers”	shall be understood to mean “Reinsurers”, “Underwriters” or whatever other term is used in the attached
reinsurance document to designate the reinsurer or reinsurers.

 

    	- 31 -

    	 

    

 

NUCLEAR INCIDENT EXCLUSION CLAUSE - LIABILITY
- REINSURANCE - U.S.A.

 

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

 

		(2)	Without in any way restricting the operation of paragraph (1) of this Clause it is understood and
agreed that for all purposes of this reinsurance all the original policies of the Reassured (new, renewal and replacement) of the
classes specified in Clause II of this paragraph (2) from the time specified in Clause III in this paragraph (2) shall be deemed
to include the following provision (specified as the Limited Exclusion Provision):

 

Limited Exclusion Provision.*

 

		I.	It is agreed that the policy does not apply under any liability coverage, to

 

injury, sickness, disease, death
or destruction 

 

bodily injury or property damage

 

with respect to which an insured
under the policy is also an insured under a nuclear energy liability policy issued by Nuclear Energy Liability Insurance Association,
Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada, or would be an insured under any such policy
but for its termination upon exhaustion of its limit of liability.

 

		II.	Family Automobile Policies (liability only), Special Automobile Policies (private passenger automobiles,
liability only), Farmers Comprehensive Personal Liability Policies (liability only), Comprehensive Personal Liability Policies
(liability only) or policies of a similar nature; and the liability portion of combination forms related to the four classes of
policies stated above, such as the Comprehensive Dwelling Policy and the applicable types of Homeowners Policies.

 

		III.	The inception dates and thereafter of all original policies as described in II above, whether new,
renewal or replacement, being policies which either

 

		(a)	become effective on or after 1st May, 1960, or

 

		(b)	become effective before that date and contain the Limited Exclusion Provision set out above;

 

provided this paragraph (2) shall
not be applicable to Family Automobile Policies, Special Automobile Policies, or policies or combination policies of a similar
nature, issued by the Reassured on New York risks, until 90 days following approval of the Limited Exclusion Provision by the Governmental
Authority having jurisdiction thereof.

 

    	- 32 -

    	 

    

 

 

		(3)	Except for those classes of policies specified in Clause II of paragraph (2) and without in any
way restricting the operation of paragraph (1) of this Clause, it is understood and agreed that for all purposes of this reinsurance
the original liability policies of the Reassured (new, renewal and replacement) affording the following coverages:

 

Owners, Landlords and Tenants Liability,
Contractual Liability, Elevator Liability, Owners or Contractors (including railroad) Protective Liability, Manufacturers and Contractors
Liability, Product Liability, Professional and Malpractice Liability, Storekeepers Liability, Garage Liability, Automobile Liability
(including Massachusetts Motor Vehicle or Garage Liability)

 

shall be deemed to include, with
respect to such coverages, from the time specified in Clause V of this paragraph (3), the following provision (specified as the
Broad Exclusion Provision):

 

Broad Exclusion Provision.*

 

It is agreed that the policy
does not apply:

 

		I.	Under any Liability Coverage, to

 

injury, sickness, disease, death
or destruction 

 

bodily injury or property damage

 

		(a)	with respect to which an insured under the policy is also an insured under a nuclear energy liability
policy issued by Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance
Association of Canada, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability;
or

 

		(b)	resulting from the hazardous properties of nuclear material and with respect to which (1) any person
or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof,
or (2) the insured is, or had this policy not been issued would be, entitled to indemnity from the United States of America, or
any agency thereof, under any agreement entered into by the United States of America, or any agency thereof, with any person or
organization.

 

		II.	Under any Medical Payments Coverage, or under any Supplementary Payments Provision relating to

 

immediate medical or surgical
relief

 

first aid,

 

to expenses incurred with respect
to

 

    	- 33 -

    	 

    

 

bodily injury, sickness, disease
or death 

 

bodily injury

 

resulting from the hazardous properties
of nuclear material and arising out of the operation of a nuclear facility by any person or organization.

 

		III.	Under any Liability Coverage, to

 

injury, sickness, disease,
death or destruction

 

bodily injury or property damage

 

resulting from the hazardous properties
of nuclear material, if

 

		(a)	the nuclear material (1) is at any nuclear facility owned by, or operated by or on behalf of, an
insured or (2) has been discharged or dispersed therefrom;

 

		(b)	the nuclear material is contained in spent fuel or waste at any time possessed, handled, used,
processed, stored, transported or disposed of by or on behalf of an insured; or

 

		(c)	the

 

injury, sickness, disease,
death or destruction 

 

bodily injury or property
damage

 

arises out of the furnishing by
an insured of services, materials, parts or equipment in connection with the planning, construction, maintenance, operation or
use of any nuclear facility, but if such facility is located within the United States of America, its territories or possessions
or Canada, this exclusion (c) applies only to

 

injury to or destruction of
property at such nuclear facility. 

 

property damage to such nuclear
facility and any property thereat.

 

		IV.	As used in this endorsement:

 

“hazardous properties”
include radioactive, toxic or explosive properties; “nuclear material” means source material, special nuclear
material or byproduct material; “source material”, “special nuclear material”, and “byproduct
material” have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof; “spent
fuel” means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a nuclear
reactor; “waste” means any waste material (1) containing byproduct material other than the tailings or wastes
produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its source material content
and (2) resulting from the operation by any person or organization of any nuclear facility included under the first two paragraphs
of the definition of nuclear facility; “nuclear facility” means

 

    	- 34 -

    	 

    

 

		(a)	any nuclear reactor,

 

		(b)	any equipment or device designed or used for (1) separating the isotopes of uranium or plutonium,
(2) processing or utilizing spent fuel, or (3) handling, processing or packaging waste,

 

		(c)	any equipment or device used for the processing, fabricating or alloying of special nuclear material
if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is
located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams
of uranium 235,

 

		(d)	any structure, basin, excavation, premises or place prepared or used for the storage or disposal
of waste,

 

and includes the site on which
any of the foregoing is located, all operations conducted on such site and all premises used for such operations; “nuclear
reactor” means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain
a critical mass of fissionable material;

 

With respect to injury to or
destruction of property, the word “injury” or “destruction” includes all forms of radioactive contamination
of property. “property damage” includes all forms of radioactive contamination of property.

 

		V.	The inception dates and thereafter of all original policies affording coverages specified in this
paragraph (3), whether new, renewal or replacement, being policies which become effective on or after 1st May, 1960, provided this
paragraph (3) shall not be applicable to

 

		(i)	Garage and Automobile Policies issued by the Reassured on New York risks, or

 

		(ii)	statutory liability insurance required under Chapter 90, General Laws of Massachusetts,

 

until 90 days following approval of the
Broad Exclusion Provision by the Governmental Authority having jurisdiction thereof.

 

		(4)	Without in any way restricting the operation of paragraph (1) of this Clause, it is understood
and agreed that paragraphs (2) and (3) above are not applicable to original liability policies of the Reassured in Canada and that
with respect to such policies this Clause shall be deemed to include the Nuclear Energy Liability Exclusion Provisions adopted
by the Canadian Underwriters’ Association or the Independent Insurance Conference of Canada.

 

    	- 35 -

    	 

    

 

 

*NOTE. The words printed in italics
in the Limited Exclusion Provision and in the Broad Exclusion Provision shall apply only in relation to original liability policies
which include a Limited Exclusion Provision or a Broad Exclusion Provision containing those words.

 

 

		NOTES:	Wherever used herein the terms:

 

		“Reassured”	shall be understood to mean “Company”, “Reinsured”, “Reassured”
or whatever other term is used in the attached reinsurance document to designate the reinsured company or companies.

 

		“Agreement”	shall be understood to mean “Agreement”, “Contract”, “Policy”
or whatever other term is used to designate the attached reinsurance document.

 

		“Reinsurers”	shall be understood to mean “Reinsurers”, “Underwriters” or whatever other
term is used in the attached reinsurance document to designate the reinsurer or reinsurers.

 

21/9/67 

NMA 1590 (amended)

 

    	- 36 -

    	 

    

 

POOLS, ASSOCIATIONS AND SYNDICATES EXCLUSION
CLAUSE

 

Section A:

 

This Contract excludes:

 

		(a)	All business derived directly or indirectly from any Pool, Association or Syndicate which maintains
its own reinsurance facilities.

 

		(b)	Any Pool or Scheme (whether voluntary or mandatory) formed after March 1, 1968 for the purpose
of insuring property, whether on a country-wide basis or in respect of designated areas. This exclusion shall not apply to so-called
Automobile Insurance Plans or other Pools formed to provide coverage for Automobile Physical Damage.

 

Section B:

 

		1.	This Agreement excludes business written by the Company for the same perils, which is known at
the time to be insured by, or in excess of underlying amounts placed in, any Pool, Association or Syndicate, whether by way of
insurance or reinsurance, formed for the purpose of writing any of the following:

 

Oil, Gas or Petro-Chemical Plants

 

Oil or Gas Drilling Rigs and/or

 

Aviation Risks

 

		2.	The exclusion under paragraph 1 of this Section B does not apply:

 

		a.	Where the Total Insured Value over all interests of the risk in question is less than $250,000,000.

 

		b.	To interests traditionally underwritten as Inland Marine and/or Stock and/or Contents written on
a Blanket basis.

 

		c.	To Contingent Business Interruption, except when the Company is aware that the key location is
known at the time to be insured in any Pool, Association or Syndicate named above, other than as provided for under subparagraph
(a).

 

Section
C:

 

		1.	Nevertheless the Reinsurer specifically agrees that liability accruing to the Company from its
participation in Residual Market Mechanisms, including but not limited to the following, for all perils otherwise protected hereunder
shall not be excluded herefrom:

 

		a.	So-called “Beach and Windstorm Plans” and so-called “Coastal Pools”;

 

		b.	All “FAIR Plan” and “Rural Risk Plan” business;

 

    	- 37 -

    	 

    

 

		c.	Citizens Property Insurance Corporation (Florida), Louisiana Citizens Property Insurance Corporation
or any similar state-run insurance corporation;

 

		d.	California Earthquake Authority (“CEA”) or any similar entity.

 

		2.	However, this reinsurance does not include any increase in such liability resulting from:

 

		a.	The inability of any other participant in such Residual Market Mechanisms to meet its liability;

 

		b.	Any claim against a Residual Market Mechanism or any participant therein, including the Company,
whether by way of subrogation or otherwise, brought by or on behalf of any insolvency fund;

 

		c.	Any assessment or surcharge levied on the policyholder and therefore not a liability of the Company;

 

		d.	The Company’s initial capital contribution to the CEA;

 

		e.	Any assessments, other than interim and regular assessments, from a Residual Market Mechanism included
in subparagraph 1(c) above.

 

		3.	The Company may include in subject loss for any Loss Occurrence covered hereunder only the liability
attributable to that Occurrence. If the relevant entity does not specify what portion of an assessment is attributable to each
Loss Occurrence, the Company may include in subject loss in respect of each Occurrence a percentage of the Company’s assessments
from the relevant entity related to the calendar year in which the Occurrence commenced, regardless of when assessed, such percentage
to be determined by dividing the relevant entity’s losses arising from the Occurrence by its total losses for the calendar
year. As respects liability accruing to the Company from its participation in the Texas Wind Insurance Association (“TWIA”),
as soon as the Company’s liability for any assessment is determined (such assessment derived solely from Occurrence(s) covered
hereunder), the full assessment may be deemed loss paid or payable by the Company and included in subject loss hereunder, allocated
to each Occurrence in accordance with the provisions of this paragraph, regardless of the date payments are actually due to TWIA.

 

		4.	The Company will deduct from subject loss amounts received as recoupment of any assessment that
has been included in the subject loss, provided the recoupment is directly allocable to the assessment (“itemized recoupment”).
The Company shall use commercially reasonable efforts to recoup such assessment. Any amount received as an itemized recoupment
of any assessment (whether under this Contract or any predecessor contract), and therefore deductible from subject loss, shall
not be included in the subject premium of this Contract. Such itemized recoupment shall include, but not be limited to, credits
allowed to the Company against its premium taxes.

 

    	- 38 -

    	 

    

 

However, if a state levies assessments
but does not allow itemized recoupment from policyholders, instead allowing the Company to file an overall increased rate, any
such premium increased thereby shall not be deemed to be a recoupment that is deductible from subject loss. Any recoupment received
as part of a general premium rate increase, not specifically itemized, shall be included as part of the subject premium of this
Contract or a successor contract, as applicable. 

 

		NOTES:	Wherever used herein the terms:

 

		“Company”	shall be understood to mean “Company”, “Reinsured”, “Reassured”
or whatever other term is used in the attached reinsurance document to designate the reinsured company or companies.

 

		“Agreement”	shall be understood to mean “Agreement”, “Contract”, “Policy”
or whatever other term is used to designate the attached reinsurance document.

 

		“Reinsurers”	shall be understood to mean “Reinsurers”, “Underwriters” or whatever other
term is used in the attached reinsurance document to designate the reinsurer or reinsurers.

 

    	- 39 -

    	 

    

 

TRUST AGREEMENT REQUIREMENTS CLAUSE

 

		A.	Except as provided in paragraph B of this Clause, if the Reinsurer satisfies its funding obligations
under the Unauthorized Reinsurance Article by providing a Trust Agreement, the Reinsurer shall ensure that the Trust Agreement:

 

		1.	Requires the Reinsurer to establish a trust account for the benefit of the Company, and specifies what the Trust Agreement
is to cover;

 

		2.	Stipulates that assets deposited in the trust account shall be valued according to their current fair market value and shall
consist only of cash (United States legal tender), certificates of deposit (issued by a United States bank and payable in United
States legal tender), and investments of the types permitted by the regulatory authorities having jurisdiction over the Company’s
reserves, or any combination of the three, provided that the investments are issued by an institution that is not the parent, subsidiary
or affiliate of either the Reinsurer or the Company;

 

		3.	Requires the Reinsurer, prior to depositing assets with the trustee, to execute assignments or endorsements in blank, or to
transfer legal title to the trustee of all shares, obligations or any other assets requiring assignments, in order that the Company,
or the trustee upon the direction of the Company, may whenever necessary negotiate these assets without consent or signature from
the Reinsurer or any other entity;

 

		4.	Requires that all settlements of account between the Company and the Reinsurer be made in cash or its equivalent; and

 

		5.	Provides that assets in the trust account shall be withdrawn only as permitted in this Contract, without diminution because
of the insolvency of the Company or the Reinsurer.

 

		B.	If a ceding insurer is domiciled in California and the Reinsurer satisfies its funding obligations
under the Unauthorized Reinsurance Article by providing a Trust Agreement, the Reinsurer shall ensure that the Trust Agreement:

 

		1.	Provides that assets deposited in the trust account shall be valued according to their current fair market value and shall
consist only of cash in United States dollars, certificates of deposit issued by a United States financial institution as defined
in California Insurance Code Section 922.7(a) and payable in United States dollars, and investments permitted by the California
Insurance Code, or any combination of the above.

 

		2.	Provides that investments in or issued by an entity controlling, controlled by or under common control with either the grantor
or the beneficiary of the trust shall not exceed 5% of total investments.

 

    	- 40 -

    	 

    

 

		3.	Requires the Reinsurer, prior to depositing assets with the trustee, to execute assignments or endorsements in blank, or to
transfer legal title to the trustee of all shares, obligations or any other assets requiring assignments, in order that the ceding
insurer, or the trustee upon the direction of the ceding insurer, may, whenever necessary, negotiate these assets without consent
or signature from the Reinsurer or any other entity.

 

		4.	Provides that assets in the trust account shall be withdrawn only as permitted in this Contract, without diminution because
of the insolvency of the ceding insurer or the Reinsurer.

 

		C.	If there are multiple ceding insurers that collectively comprise the Company, “regulatory
authorities” as referenced in subparagraph A(2) above, shall mean the individual ceding insurer’s domestic regulator.
If such ceding insurer is subject to the commercial domicile laws or regulations of another state, such laws or regulations shall
apply to the extent not in conflict with those of such ceding insurer’s domicile.

 

    	- 41 -Top Layer Property Catastrophe Excess
of Loss

Reinsurance Contract

Effective: August 15, 2012

 

Homeowners of America Insurance Company

Irving, Texas

 

    	 

    	 

    
 

Top Layer Property Catastrophe Excess
of Loss

Reinsurance Contract

Effective: August 15, 2012

 

Homeowners of America Insurance Company

Irving, Texas

 

	Reinsurer(s)	Participation(s)
	Through Aon UK Limited trading as Aon Benfield	50.0%
	Companies Per Signing Page(s)	50.0%
	Total	 

 

    	-2-

    	 

    

Table of Contents

 

	Article	Page
	 	 
	    Preamble	5
	 	 
	Article 1 - Classes of Business Reinsured	5
	 	 
	Article 2 - Commencement and Termination	5
	 	 
	Article 3 - Territory (BRMA 51A)	7
	 	 
	Article 4 - Exclusions	7
	 	 
	Article 5 - Special Acceptances	9
	 	 
	Article 6 - Retention and Limit	9
	 	 
	Article 7 - Reinstatement	10
	 	 
	Article 8 - Definitions	10
	 	 
	Article 9 - Other Reinsurance	12
	 	 
	Article 10 - Loss Occurrence	12
	 	 
	Article 11 - Loss Notices and Settlements	14
	 	 
	Article 12 - Salvage and Subrogation	14
	 	 
	Article 13 - Reinsurance Premium	15
	 	 
	Article 14 - Late Payments	16
	 	 
	Article 15 - Offset (BRMA 36C)	18
	 	 
	Article 16 - Access to Records	18
	 	 
	Article 17 - Liability of the Reinsurer	19
	 	 
	Article 18 - Net Retained Lines (BRMA 32E)	19
	 	 
	Article 19 - Errors and Omissions	19
	 	 
	Article 20 - Currency (BRMA 12A)	19
	 	 
	Article 21 - Taxes (BRMA 50B)	20
	 	 
	Article 22 - Federal Excise Tax (BRMA 17D)	20
	 	 
	Article 23 - Reserves	20
	 	 
	Article 24 - Insolvency	22
	 	 
	Article 25 - Arbitration	23
	 	 
	Article 26 - Service of Suit (BRMA 49G)	24
	 	 
	Article 27 - Confidentiality	25
	 	 
	Article 28 - Agency Agreement	26
	 	 
	Article 29 - Governing Law (BRMA 71B)	26
	 	 
	Article 30 - Severability (BRMA 72E)	26
	 	 
	Article 31 - Entire Agreement	26
	 	 
	Article 32 - Notices and Contract Execution	26
	 	 
	Article 33 - Intermediary	28

 

    	-3-

    	 

    

 

Top Layer Property Catastrophe Excess
of Loss

Reinsurance Contract

Effective: August 15, 2012

 

entered into by and between

 

Homeowners of America Insurance Company

Irving, Texas

 

and

 

The Subscribing Reinsurer(s) Executing the

Interests and Liabilities Agreement(s)

Attached Hereto

(hereinafter referred to as the “Reinsures”)

 

Preamble

 

Whenever the word “Company” is used in this Contract,
such term shall be held to include any or all of the affiliated insurance companies of Homeowners of America Insurance Company,
which are or may hereafter be under common control, provided that notice be given to the Reinsurer of any such newly affiliated
insurance companies which may hereafter come under common control as soon as practicable with full particulars as to how such affiliation
is likely to affect this Contract. In the event of either party maintaining that such affiliation calls for alteration in existing
terms, and an agreement for alteration not being arrived at, then the business of such newly affiliated insurance company is covered
at existing terms only for a period of 45 days after notice by either party that it does not wish to cover such business.

 

Article
1  - Classes of Business Reinsured

 

By this Contract the Reinsurer agrees to reinsure the excess
liability which may accrue to the Company under its policies in force at the effective date hereof or issued or renewed on or after
that date, and classified by the Company as Dwelling and Homeowners business (property coverages only, including Dwelling coverage,
Personal Property coverage and Extensions of Coverage as defined in the Company’s policies), subject to the terms, conditions
and limitations hereinafter set forth.

 

Article
2  - Commencement and Termination

 

		A.	This Contract shall become effective at 12:01 a.m., Central Standard Time, August 15, 2012, with respect to losses arising
out of loss occurrences commencing at or after that time and date, and shall remain in force until 12:01 a.m., Central Standard
Time, April 1, 2013.

 

		B.	Notwithstanding the provisions of paragraph A above, the Company may terminate a Subscribing Reinsurers percentage share in
this Contract in the event any of the following circumstances occur as clarified by public announcement or upon discovery:

 

    	-4-

    	 

    
 

		1	The Subscribing Reinsurer’s policyholders’ surplus (or its equivalent under the Subscribing
Reinsurer’s accounting system) after the earlier of: (a) the inception of this Contract, or (b) the date lines are bound
for this Contract, has been reduced by more than 20.0% of the amount of surplus (or the applicable equivalent) 12 months prior
to that date; or

 

		2	The Subscribing Reinsurers policyholders’ surplus (or its equivalent under the Subscribing
Reinsurers accounting system) at any time between the earlier of: (a) the inception of this Contract, or (b) the date lines are
bound for this Contract, and the date of termination of this Contract has been reduced by more than 20.0% of the amount of surplus
(or the applicable equivalent) at the date of the Subscribing Reinsurers most recent financial statement filed with regulatory
authorities and available to the public as of the date lines are bound; or

 

		3	A State Insurance Department or other legal authority has ordered the Subscribing Reinsurer to
cease assuming business; or

 

		4	The Subscribing Reinsurer has become insolvent or has been placed into liquidation, receivership,
supervision, administration, winding-up or under a scheme of arrangement, or similar proceedings (whether voluntary or involuntary)
or proceedings have been instituted against the Subscribing Reinsurer for the appointment of a receiver, liquidator, rehabilitator,
supervisor, administrator, conservator or trustee in bankruptcy, or other agent known by whatever name, to take possession of its
assets or control of its operations; or

 

		5	The Subscribing Reinsurer has reinsured its entire liability under this Contract without the Company’s
prior written consent or

 

		6	The A.M. Best’s rating for the Subscribing Reinsurer has been assigned or downgraded below
A- (inclusive of “Not Rated” ratings), or the published rating issued by Standard & Poors has been downgraded below
BBB+ (inclusive of “Not Rated” ratings); or

 

		7	The Subscribing Reinsurer has become merged with, acquired by or controlled by any other entity
or individual(s) not controlling the Subscribing Reinsurers operations previously; or

 

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

 

		C.	In the event a Subscribing Reinsurer experiences one or more of the circumstances specified in paragraph B above, the Subscribing
Reinsurer shall notify the Company as promptly as possible and shall hereinafter be referred to as a “Special Circumstance
Reinsurer.” To terminate a Special Circumstance Reinsurers percentage share in this Contract, the Company must provide the
Special Circumstance Reinsurer with written notice as set forth in the Notices and Contract Execution Article. Such notice shall
include the effective date of termination as selected by the Company and shall be one of the following:

 

    	-5-

    	 

    
 

		1	The date of written notice provided by the Special Circumstance Reinsurer; or

 

		2	The last day of the month prior to the date of written notice provided by the Special Circumstance
Reinsurer, or

 

		3	The last day of any month after the date of written notice provided by the Special Circumstance
Reinsurer; or

 

		4	The date of the Company’s written notice to the Special Circumstance Reinsurer advising of
the termination.

 

In the event the Subscribing Reinsurer fails to immediately
provide written notice to the Company of any event outlined in subparagraphs 1 through 8 of paragraph B above, the Company may
elect to substitute the date of public announcement or discovery as the equivalent of written notice.

 

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

 

Article
3  - Territory (BRMA 51A)

 

The territorial limits of this Contract shall be identical with
those of the Company’s policies.

 

Article
4  - Exclusions

 

		A.	This Contract does not apply to and specifically excludes the following:

 

		1	Financial guarantee and insolvency.

 

		2	Nuclear risks as defined in the “Nuclear Incident Exclusion Clause - Physical Damage - Reinsurance
(U.S.A.)” attached to and forming part of this Contract.

 

		3	Loss or damage caused by or resulting from war, invasion, hostilities, acts of foreign enemies,
civil war, rebellion, insurrection, military or usurped power, or martial law or confiscation by order of any government or public
authority, but this exclusion shall not apply to loss or damage covered under a standard policy with a standard War Exclusion Clause.

 

    	-6-

    	 

    
 

		4	Loss or liability excluded under the provisions of the “Pools, Associations and Syndicates
Exclusion Clause” attached to and forming part of this Contract.

 

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

 

		6	All third party liability, including Section II of Homeowners.

 

		7	Loss or damage to growing or standing crops.

 

		8	Pollution and seepage coverages excluded under the provisions of the “Pollution and Seepage
Exclusion Clause (BRMA 39A)” - attached to and forming part of this Contract.

 

		9	Terrorism, as described in the provisions of the “Terrorism Exclusion (NMA 2930c)”
attached to and forming part of this Contract.

 

		10	Flood and/or earthquake when written as such.

 

		11	Loss, damage, cost or expense arising from fungi unless directly or indirectly caused by or contributed
to by or arising from a covered peril under the Company’s original policy. Losses arising from fungi shall not in and of
themselves constitute an event for the purposes of recovery hereunder. For the purposes of this Contract, “fungi” means
any type or form of fungus, including mold or mildew and any mycotoxins, spores, scents or by products produced or released by
“fungi.”

 

		12	Reinsurance assumed.

 

		13	Growing, standing or drying crops or timber.

 

		B.	Any exclusion set forth in paragraph A (except exclusions set forth in subparagraphs 1, 2, 3, 5, 6 and 9) shall be waived automatically
when, in the opinion of the Company, the exposure excluded therein is incidental to the principal exposure on the risk in question.

 

    	-7-

    	 

    
 

		C.	If the Company is bound, without the knowledge and contrary to the instructions of the Company’s supervisory underwriting
personnel, on any business falling within the scope of one or more of the exclusions set forth in paragraph A (except exclusions
set forth in subparagraphs 1, 2, 3, 5, 6 and 9), the exclusion shall be suspended with respect to such business until 30 days after
an underwriting supervisor of the Company acquires knowledge thereof or until the minimum amount of time required by the applicable
statute or regulatory authority to cancel such a policy has elapsed, whichever is greater.

 

		D.	If the Company is required to accept an assigned risk which conflicts with one or more of the exclusions set forth in paragraph
A (except exclusions set forth in subparagraphs 1, 2, 3, 5, 6 and 9), reinsurance shall apply, but only for the difference between
the Company’s retention and the minimum limit required by the applicable state statute, and in no event shall the Reinsurer’s
liability exceed the applicable limits set forth in the Retention and Limit and Reinstatement Articles.

 

Article
5 - Special Acceptances

 

		A.	From time to time the Company may request a special acceptance of reinsurance falling outside the scope of the provisions of
this Contract (except as respects the exclusions set forth in subparagraphs 1, 2, 3, 5, 6 and 9 of the Exclusions Article). Within
10 days of receipt of such a request, each Subscribing Reinsurer shall accept such request, ask for additional information, or
reject the request. Any reinsurance that is specially accepted by the Reinsurer shall be covered under this Contract and shall
be subject to the terms hereof, except as such terms shall be modified by the special acceptance.

 

		B.	In the event a reinsurer becomes a party to this Contract subsequent to one or more special acceptances hereunder, the new
reinsurer shall automatically accept such special acceptance(s) as being covered hereunder. Further, if one or more Subscribing
Reinsurers under this Contract agreed to special acceptance(s) under the contract being replaced by this Contract, such special
acceptance(s) shall be automatically covered hereunder with respect to the interests and liabilities of such Subscribing Reinsurer(s).

 

Article
6  - Retention and Limit

 

		A.	The Company shall retain and be liable for the first $60,000,000 of ultimate net loss arising out of each loss occurrence.
The Reinsurer shall then be liable for the amount by which such ultimate net loss exceeds the Company’s retention, but the
liability of the Reinsurer shall not exceed $5,000,000 as respects any one loss occurrence.

 

		B.	No claim shall be made hereunder in any one loss occurrence unless at least two risks insured by the Company are involved in
such loss occurrence. For the purposes of this Contract, the Company shall be the sole judge of what constitutes “one risk.”

 

    	-8-

    	 

    
 

Article
7  - Reinstatement

 

		A.	In the event all or any portion of the reinsurance hereunder is exhausted by loss, the amount so exhausted shall be reinstated
immediately from the time the loss occurrence commences hereon. For each amount so reinstated, the Company agrees to pay additional
premium in accordance with the provisions of the Reinsurance Premium Article.

 

		B.	Notwithstanding anything stated herein, the liability of the Reinsurer hereunder shall not exceed $5,000,000 as respects loss
or losses arising out of any one loss occurrence, nor shall it exceed $10,000,000 as respects all losses arising out of loss occurrences
commencing during the term of this Contract.

 

Article
8 - Definitions

 

		A.	“Loss adjustment expense” as used herein shall mean costs and expenses assignable to the investigation, appraisal,
adjustment, settlement, litigation, defense and/or appeal of specific claims, regardless of how such expenses are classified for
statutory reporting purposes. Loss adjustment expense shall include, but not be limited to:

 

Interest on judgments (including post judgment interest
and pre-judgment interest unless included as part of an award or judgment);

 

		1	Expenses of outside adjusters and adjuster expenses incurred by Homeowners of America MGA, Inc.;

 

		2	Expenses and a pro rata share of salaries of the Company’s field employees, calculated in
accordance with the time occupied in adjusting such loss, and expenses of other employees of the Company who have been temporarily
diverted from their normal and customary duties and assigned to the adjustment of losses covered by this Contract;

 

		3	Declaratory judgment expenses or other legal expenses and costs incurred in connection with coverage
questions and legal actions connected thereto;

 

		4	Court costs;

 

		5	Costs of supersedeas and appeal bonds;

 

		6	Monitoring counsel expenses.

 

    	-9-

    	 

    
 

However, loss adjustment expense shall not include
normal office expenses and salaries of the Company’s regular employees, except as provided for in subparagraph 3 above.

 

		B.	“Loss in excess of policy limits” and “extra contractual obligations” as used herein shall mean:

 

		1	“Loss in excess of policy limits” shall mean 90.0% of any amount paid or payable by
the Company in excess of its policy limits, but otherwise within the terms of its policy, such loss in excess of the Company’s
policy limits having been incurred because of, but not limited to, failure by the Company to settle within the policy limits or
by reason of the Company’s alleged or actual negligence, fraud or bad faith in rejecting an offer of settlement or in the
preparation of the defense or in the trial of an action against its insured or in the preparation or prosecution of an appeal consequent
upon such an action.

 

		2	“Extra contractual obligations” shall mean 90.0% of any punitive, exemplary, compensatory
or consequential damages paid or payable by the Company, not covered by any other provision of this Contract and which arise from
the handling of any claim on business subject to this Contract, such liabilities arising because of, but not limited to, failure
by the Company to settle within the policy limits or by reason of the Company’s alleged or actual negligence, fraud or bad
faith in rejecting an offer of settlement or in the preparation of the defense or in the trial of an action against its insured
or in the preparation or prosecution of an appeal consequent upon such an action. An extra contractual obligation shall be deemed,
in all circumstances, to have occurred on the same date as the loss covered or alleged to be covered under the policy

 

However, loss in excess of policy limits and extra
contractual obligations arising out of each loss occurrence shall not exceed an amount equal to 25.0% of the Company’s indemnity
loss hereunder.

 

Notwithstanding anything stated herein, this Contract
shall not apply to any loss in excess of policy limits or any extra contractual obligation incurred by the Company as a result
of any fraudulent and/or criminal act by any officer or director of the Company acting individually or collectively or in collusion
with any individual or corporation or any other organization or party involved in the presentation, defense or settlement of any
claim covered hereunder.

 

Savings Clause (Applicable only if the Subscribing
Reinsurer is domiciled in the State of New York): In no event shall coverage be provided to the extent that such coverage is not
permitted under New York law.

 

		C.	“Policies” as used herein shall mean all policies, contracts and binders of insurance, whether held covered provisionally
or otherwise.

 

    	-10-

    	 

    
 

		D.	“Term of this Contract” as used herein shall mean the period from 12:01 a.m., Central Standard Time, August 15,
2012, to 12:01 a.m., Central Standard Time, April 1, 2013. However, if this Contract or the participation of a Subscribing Reinsurer
is terminated, “term of this Contract” as used herein shall mean the period from 12:01 a.m., Central Standard Time,
August 15, 2012, to the effective time and date of termination.

 

		E.	“Ultimate net loss” as used herein shall mean the sum or sums (including loss in excess of policy limits, extra
contractual obligations and loss adjustment expense, as herein defined) paid or payable by the Company in settlement of claims
and in satisfaction of judgments rendered on account of such claims, after deduction of all claims on inuring reinsurance, whether
collectible or not, and all salvage and other recoveries. Nothing herein shall be construed to mean that losses under this Contract
are not recoverable until the Company’s ultimate net loss has been ascertained.

 

Article
9  - Other Reinsurance

 

		A.	The Company shall maintain in force property per risk excess of loss treaty reinsurance, recoveries under which shall inure
to the benefit of this Contract.

 

		B.	The Company shall be permitted to carry other reinsurance, recoveries under which shall inure solely to the benefit of the
Company and be entirely disregarded in applying all of the provisions of this Contract.

 

Article
10  - Loss Occurrence

 

		A.	The term “loss occurrence” as used herein shall mean the sum of all individual losses directly occasioned by any
one disaster, accident or loss or series of disasters, accidents or losses arising out of one event which occurs within the area
of one state of the United States or province of Canada and states or provinces contiguous thereto and to one another. However,
the duration and extent of any one “loss occurrence” shall be limited to all individual losses sustained by the Company
occurring during any period of 168 consecutive hours arising out of and directly occasioned by the same event, except that the
term “loss occurrence” shall be further defined as follows:

 

		1	As regards windstorm, hail, tornado, hurricane, cyclone, including ensuing collapse and water damage,
all individual losses sustained by the Company occurring during any period of 72 consecutive hours arising out of and directly
occasioned by the same event. However, the event need not be limited to one state or province or states or provinces contiguous
thereto.

 

		2	As regards riot, riot attending a strike, civil commotion, vandalism and malicious mischief, all
individual losses sustained by the Company occurring during any period of 72 consecutive hours within the area of one municipality
or county and the municipalities or counties contiguous thereto arising out of and directly occasioned by the same event. The maximum
duration of 72 consecutive hours may be extended in respect of individual losses which occur beyond such 72 consecutive hours during
the continued occupation of an assured’s premises by strikers, provided such occupation commenced during the aforesaid period.

 

    	-11-

    	 

    
 

		3	As regards earthquake (the epicenter of which need not necessarily be within the territorial confines
referred to in the introductory portion of this paragraph) and fire following directly occasioned by the earthquake, only those
individual fire losses which commence during the period of 168 consecutive hours may be included in the Company’s “loss
occurrence.”

 

		4	As regards “freeze,” only individual losses directly occasioned by collapse, breakage
of glass and water damage (caused by bursting of frozen pipes and tanks or freezing and/or melting snow or sleet) may be included
in the Company’s “loss occurrence.”

 

		5	As regards firestorms, brush fires and any other fires or series of fires, irrespective of origin
(except as provided in subparagraphs 2 and 3 above), all individual losses sustained by the Company which commence during any period
of 168 consecutive hours within a 150-mile radius of any fixed point selected by the Company may be included in the Company’s
loss occurrence.” However, an individual loss subject to this subparagraph cannot be included in more than one “loss
occurrence.”

 

		B.	For all those “loss occurrences” other than those referred to in subparagraph 2 above, the Company may choose the
date and time when any such period of consecutive hours commences, provided that it is not earlier than the date and time of the
occurrence of the first recorded individual loss sustained by the Company arising out of that disaster, accident or loss, and provided
that only one such period of 168 consecutive hours shall apply with respect to one event, except for any “loss occurrence”
referred to in subparagraph 1 of paragraph A above where only one such period of 72 consecutive hours shall apply with respect
to one event, regardless of the duration of the event.

 

		C.	As respects those “loss occurrences” referred to in subparagraph 2 above, if the disaster, accident or loss occasioned
by the event is of greater duration than 72 consecutive hours, then the Company may divide that disaster, accident or loss into
two or more “loss occurrences,” provided no two periods overlap and no individual loss is included in more than one
such period and provided that no period commences earlier than the date and time of the occurrence of the first recorded individual
loss sustained by the Company arising out of that disaster, accident or loss.

 

		D.	It is understood that losses arising from a combination of two or more perils as a result of the same event shall be considered
as having arisen from one “loss occurrence.” Notwithstanding the foregoing, the hourly limitations as stated in paragraphs
A, B and C shall not be exceeded as respects the applicable perils and no single “loss occurrence” shall encompass
a time period greater than 168 consecutive hours.

 

    	-12-

    	 

    
 

Article
11  - Loss Notices and Settlements

 

		A.	Whenever losses paid or reserved by the Company appear likely, in the opinion of the Company, to result in a claim hereunder,
the Company shall notify the Reinsurer, and the Company shall notify the Reinsurer of all subsequent developments that may materially
affect the position of the Reinsurer.

 

		B.	The Company alone and at its full discretion shall adjust, settle or compromise all claims and losses subject to this Contract.
The Reinsurer shall be bound by the judgment of the Company as to the obligations and liabilities of the Company under any policy.

 

		C.	All loss settlements made by the Company, whether under strict policy terms or by way of compromise (including loss in excess
of policy limits and extra contractual obligations) shall be binding upon the Reinsurer, and the Reinsurer agrees to pay or allow,
as the case may be, all amounts for which it may be liable immediately upon receipt of reasonable evidence of the amount paid (or
scheduled to be paid) by the Company. The Company shall be the sole judge as to:

 

		1	What constitutes a claim or loss covered under any policy;

 

		2	The Company’s liability thereunder,

 

		3	The amount or amounts proper for the Company to pay thereunder.

 

		D.	A Special Circumstance Reinsurer shall not have the right to deny payment of a claim if the sum of the percentage shares of
Active Subscribing Reinsurers that have paid the claim exceeds 50.0% of the sum of the percentage shares of all Active Subscribing
Reinsurers. “Active Subscribing Reinsurer” as used herein shall mean a Subscribing Reinsurer that is not a Special
Circumstance Reinsurer as of the due date of the claim (as specified in the Late Payments Article).

 

Article
12  - Salvage and Subrogation

 

The Reinsurer shall be credited with salvage (i.e., reimbursement
obtained or recovery made by the Company, less the actual cost, excluding salaries of officials and employees of the Company and
sums paid to attorneys as retainer, of obtaining such reimbursement or making such recovery) on account of claims and settlements
involving reinsurance hereunder. Salvage thereon shall always be used to reimburse the excess carriers in the reverse order of
their priority according to their participation before being used in any way to reimburse the Company for its primary loss. The
Company hereby agrees to enforce its rights to salvage or subrogation relating to any loss, a part of which loss was sustained
by the Reinsurer, and to prosecute all claims arising out of such rights if, in the Company’s opinion, it is reasonable to
do so.

 

    	-13-

    	 

    
 

Article
13  - Reinsurance Premium

 

		A.	As premium for the reinsurance provided hereunder, the Company shall pay the Reinsurer 0.7098% of the Company’s net earned
premium for the term of this Contract, subject to a minimum premium of $180,000.

 

		B.	The Company shall pay the Reinsurer a deposit premium of $225,000 in one installment of $56,250 on August 15, 2012, and two
equal installments of $84,375 on October 1, 2012 and January 1, 2013.

 

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

 

		D.	For each amount of limit reinstated in accordance with the Reinstatement Article, the Company agrees to pay additional premium
equal to the product of the following:

 

		1	The percentage of the occurrence limit reinstated (based on the loss paid by the Reinsurer); times

 

		2	with paragraph C above, for the term of this Contract (exclusive of reinstatement premium).

 

		E.	Whenever the Company requests payment by the Reinsurer of any loss hereunder, the Company shall submit a statement to the Reinsurer
of reinstatement premium due the Reinsurer. If the earned reinsurance premium for the term of this Contract has not been finally
determined as of the date of any such statement, the calculation of reinstatement premium due shall be based on the deposit premium
and shall be readjusted when the earned reinsurance premium for the term of this Contract has been finally determined. Any reinstatement
premium shown to be due the Reinsurer as reflected by any such statement (less prior payments, if any) shall be payable by the
Company concurrently with payment by the Reinsurer of the requested loss. Any return reinstatement premium shown to be due the
Company shall be remitted by the Reinsurer as promptly as possible after receipt and verification of the Company’s statement.

 

		F.	In the event a Subscribing Reinsurer’s participation in this Contract is terminated under the provisions of the Commencement
and Termination Article, no deposit premium shall be due after the effective date of termination, the minimum premium shall be
waived, and the reinsurance premium and reinstatement premium, if applicable, will be calculated in accordance with the following
formulas:

 

    	-14-

    	 

    
 

		1	Reinsurance premium shall be the number of days the Subscribing Reinsurer participates on this
Contract divided by the number of days of the original term of this Contract and the quotient thereof shall be multiplied by the
Subscribing Reinsurer’s percentage share of the final adjusted premium reported in accordance with paragraph C above.

 

		2	Reinstatement premium shall be the product of subparagraphs D(1) and F(1) above.

 

		3	In the event the incurred loss is greater than the sum of subparagraphs F(1) and F(2) above, in
lieu of the provisions of subparagraphs F(1) and F(2) above, the Subscribing Reinsurer will receive premium equal to the lesser
of:

 

		a.	An amount equal to the Subscribing Reinsurer’s percentage share of the full reinsurance premium
calculated in accordance with paragraph A (without regard to the termination of the Subscribing Reinsurer’s share in accordance
with the provisions of the Commencement and Termination Article) plus any reinstatement premium calculated in accordance with subparagraph
F(2) above; or

 

		b.	The Subscribing Reinsurer’s percentage share of the incurred loss.

 

		G.	Within 45 days after the termination of this Contract, the Company shall provide a report to the Reinsurer setting forth the
premium due hereunder, computed in accordance with paragraph F above, and any additional premium due the Reinsurer or return premium
due the Company shall be remitted promptly.

 

		H.	“Net earned premium” as used herein shall mean the gross earned premium of the Company for the classes of business
reinsured hereunder, less the earned portion of premiums ceded by the Company for reinsurance which inures to the benefit of this
Contract.

 

		I.	“Incurred loss” as used herein shall mean the Company’s ceded ultimate net loss plus the Company’s
ceded outstanding loss and loss adjustment expense reserves (including all case reserves plus any reasonable amount estimated to
be unreported from known loss occurrences as established by the Company).

 

Article
14  - Late Payments

 

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

 

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

 

    	-15-

    	 

    
 

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

 

		2	1/365ths of the sum of 1.0% and the U.S. prime rate as quoted in The Wall Street Journal on the
first business day of the month for which the calculation is made; times

 

		3	The amount past due, including accrued interest.

 

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

 

Notwithstanding the provisions of subparagraph 2 above
and the immediately preceding sentence, the interest rate for a Special Circumstance Reinsurer will increase by 0.5% for every
month that payment of the claim is past due, subject to a maximum annual interest rate of 7.0%.

 

		C.	If the interest rate provided under this Article exceeds the maximum interest rate allowed by any applicable law or is held
unenforceable by a court of competent jurisdiction, such interest rate shall be modified to the highest rate permitted by the applicable
law, and all remaining provisions of this Article and Contract shall remain in full force and effect without being impaired or
invalidated in any way.

 

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

 

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

 

		2	Any claim or loss payment due the Company hereunder shall be deemed due 30 days after the proof
of loss or demand for payment is transmitted to the Reinsurer. If such loss or claim payment is not received within the 30 days,
interest will accrue on the payment or amount overdue in accordance with paragraph B above, from the date the proof of loss or
demand for payment was transmitted to the Reinsurer.

 

		3	As respects any payment, adjustment or return due either party not otherwise provided for in subparagraphs
1 and 2 of this paragraph, the due date shall be as provided for in the applicable section of this Contract. In the event a due
date is not specifically stated for a given payment, it shall be deemed due 30 days following transmittal of written notification
that the provisions of this Article have been invoked.

 

    	-16-

    	 

    
 

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

 

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

 

		F.	Interest charges arising out of the application of this Article that are $250 or less from any party shall be waived unless
there is a pattern of late payments consisting of three or more items over the course of any 12-month period.

 

Article
15  - Offset (BRMA 36C)

 

The Company and the Reinsurer shall have the right to offset
any balance or amounts due from one party to the other under the terms of this Contract. The party asserting the right of offset
may exercise such right any time whether the balances due are on account of premiums or losses or otherwise.

 

Article
16  - Access to Records

 

		A.	Provided the Company has received at least five working days prior notice, the Reinsurer or its designated representatives
shall have access during regular business hours to all records of the Company which pertain in any way to this reinsurance. However,
a Subscribing Reinsurer or its designated representatives shall not have any right of access to the records of the Company if it
is not current in all undisputed payments due the Company. “Undisputed” as used herein shall mean any amount that the
Subscribing Reinsurer has not contested in writing to the Company that specifies the reason(s) why the payments are disputed.

 

		B.	The provisions of this Article shall extend beyond the expiration or invalidation of this Contract, or the termination of a
Subscribing Reinsurers percentage share in this Contract, until all claims and losses hereunder are settled.

 

    	-17-

    	 

    
 

Article
17  - Liability of the Reinsurer

 

		A.	The liability of the Reinsurer shall follow that of the Company in every case, including judicial interpretation and policy
reformation, and be subject in all respects to all the general and specific stipulations, clauses, waivers and modifications of
the Company’s policies and any endorsements thereon. However, in no event shall this be construed in any way to provide coverage
outside the terms and conditions set forth in this Contract.

 

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

 

Article
18  - Net Retained Lines (BRMA 32E)

 

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

 

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

 

Article
19  - Errors and Omissions

 

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

 

Article
20  - Currency (BRMA 12A)

 

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

 

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

 

    	-18-

    	 

    
 

Article
21  - Taxes (BRMA 50B)

 

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

 

Article
22  - Federal Excise Tax (BRMA 17D)

 

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

 

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

 

Article
23  - Reserves

 

		A.	The Reinsurer agrees to fund its share of the Company’s ceded outstanding loss and loss adjustment expense reserves (including
all case reserves plus any reasonable amount estimated to be unreported from known loss occurrences as established by the Company),
and any other outstanding balances which it shall be required by applicable regulation or law to set up under this Contract (the
“funding obligation”) by:

 

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

 

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

 

		3	Cash advances;

 

if the Reinsurer.

 

		1	Is unauthorized in any state of the United States of America or the District of Columbia and if,
without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance
regulatory authorities involved; or

 

		2	Is a Special Circumstance Reinsurer.

 

    	-19-

    	 

    
 

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

 

Notwithstanding the provisions of the Arbitration
Article, if a Special Circumstance Reinsurer fails to fund its share of the funding obligation as set forth above, the Company
retains its right to apply to a court of competent jurisdiction for equitable or interim relief.

 

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

 

		1	To reimburse itself for the Reinsurer’s share of losses and/or loss adjustment expense paid
under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer,

 

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

 

		3	To fund a cash account in an amount equal to the Reinsurer’s funding obligation funded by
means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the
Reinsurer 10 days prior to its expiration date;

 

		4	To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s
funding obligation, if so requested by the Reinsurer.

 

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

 

		C.	If a Subscribing Reinsurer fails to fulfill its funding obligation (if any) under this Article, the Company may, at its option,
require the Subscribing Reinsurer to pay, and the Subscribing Reinsurer agrees to pay, an interest charge on the funding obligation
calculated on the last business day of each month as follows:

 

		1	The number of full days that have expired since the earliest of the applicable following dates:

 

    	-20-

    	 

    
 

		a.	As respects a Subscribing Reinsurer that is unauthorized in any state of the United States of America
or District of Columbia having jurisdiction over the Company, December 31 of the calendar year in which the funding was required;
or

 

		b.	As respects a Special Circumstance Reinsurer, the first date such reinsurer becomes a Special Circumstance
Reinsurer;

 

times:

 

		2	1/365ths of the sum of 4.0% and the U.S. prime rate as quoted in The Wall Street Journal on the
first business day of the month for which the calculation is made; times

 

		3	The greater of (a) the funding obligation, less the amount, if any, funded by the Subscribing Reinsurer
prior to the applicable date determined in subparagraph 1 above or (b) $100,000.

 

It is agreed that interest shall accumulate until
the full interest charge amount as provided for in this paragraph and the funding obligation are paid.

 

If the interest rate provided under this Article exceeds
the maximum interest rate allowed by any applicable law or is held unenforceable by an arbitrator or a court of competent jurisdiction,
such interest rate shall be modified to the highest rate permitted by the applicable law, and all remaining provisions of this
Article and Contract shall remain in full force and effect without being impaired or invalidated in any way.

 

Article
24  - Insolvency

 

		A.	In the event of the insolvency of one or more of the reinsured companies, this reinsurance shall be payable directly to the
company or to its liquidator, receiver, conservator or statutory successor on the basis of the liability of the company without
diminution because of the insolvency of the company or because the liquidator, receiver, conservator or statutory successor of
the company has failed to pay all or a portion of any claim. It is agreed, however, that the liquidator, receiver, conservator
or statutory successor of the company shall give written notice to the Reinsurer of the pendency of a claim against the company
indicating the policy or bond reinsured which claim would involve a possible liability on the part of the Reinsurer within a reasonable
time after such claim is filed in the conservation or liquidation proceeding or in the receivership, and that during the pendency
of such claim, the Reinsurer may investigate such claim and interpose, at its own expense, in the proceeding where such claim is
to be adjudicated, any defense or defenses that it may deem available to the company or its liquidator, receiver, conservator or
statutory successor. The expense thus incurred by the Reinsurer shall be chargeable, subject to the approval of the Court, against
the company as part of the expense of conservation or liquidation to the extent of a pro rata share of the benefit which may accrue
to the company solely as a result of the defense undertaken by the Reinsurer.

 

    	-21-

    	 

    
 

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

 

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

 

Article
25  - Arbitration

 

		A.	As a condition precedent to any right of action hereunder, in the event of any dispute or difference of opinion hereafter arising
with respect to this Contract, it is hereby mutually agreed that such dispute or difference of opinion shall be submitted to arbitration.
One Arbiter shall be chosen by the Company, the other by the Reinsurer, and an Umpire shall be chosen by the two Arbiters before
they enter upon arbitration, all of whom shall be active or retired disinterested executive officers of insurance or reinsurance
companies or Lloyd’s London Underwriters. In the event that either party should fail to choose an Arbiter within 30 days
following a written request by the other party to do so, the requesting party may choose two Arbiters who shall in turn choose
an Umpire before entering upon arbitration. If the two Arbiters fail to agree upon the selection of an Umpire within 30 days following
their appointment, the Umpire will be appointed within 10 days thereafter according to the ARIAS-U.S. (Association Internationale
de Droit des Assurances (AIDA) Reinsurance and Insurance Arbitration Society) Umpire Appointment Procedure in effect at such time.
Notwithstanding the above, in the event the dispute or difference of opinion involves a Special Circumstance Reinsurer, the Company
may, at its option, choose to forego arbitration and may bring an action in any court of competent jurisdiction.

 

		B.	Each party shall present its case to the Arbiters within 30 days following the date of appointment of the Umpire. The Arbiters
shall consider this Contract as an honorable engagement rather than merely as a legal obligation and they are relieved of all judicial
formalities and may abstain from following the strict rules of law. The decision of the Arbiters shall be final and binding on
both parties; but failing to agree, they shall call in the Umpire and the decision of the majority shall be final and binding upon
both parties. Judgment upon the final decision of the Arbiters may be entered in any court of competent jurisdiction and the Arbiters
are empowered to grant interim relief as they may deem appropriate.

 

    	-22-

    	 

    
 

		C.	If more than one reinsurer is involved in the same dispute, all such reinsurers shall, at the option of the Company, constitute
and act as one party for purposes of this Article and communications shall be made by the Company to each of the reinsurers constituting
one party, provided, however, that nothing herein shall impair the rights of such reinsurers to assert several, rather than joint,
defenses or claims, nor be construed as changing the liability of the reinsurers participating under the terms of this Contract
from several to joint.

 

		D.	Each party shall bear the expense of its own Arbiter, and shall jointly and equally bear with the other the expense of the
Umpire and of the arbitration. In the event that the two Arbiters are chosen by one party, as above provided, the expense of the
Arbiters, the Umpire and the arbitration shall be equally divided between the two parties.

 

		E.	Any arbitration proceedings shall take place in Irving, Texas, or at a location mutually agreed upon by the parties to this
Contract, but notwithstanding the location of the arbitration, all proceedings pursuant hereto shall be governed by the law of
the State of Texas.

 

Article
26  - Service of Suit (BRMA 49G)

 

(Applicable if the Reinsurer is not domiciled in the United
States of America, and/or is not authorized in any State, Territory or District of the United States where authorization is required
by insurance regulatory authorities)

 

		A.	This Article will not be read to conflict with or override the obligations of the parties to arbitrate their disputes as provided
for in the Arbitration Article. This Article is intended as an aid to compelling arbitration or enforcing such arbitration or arbitral
award, not as an alternative to the Arbitration Article for resolving disputes arising out of this Contract.

 

		B.	In the event the Reinsurer fails to pay any amount claimed to be due hereunder, the Reinsurer, at the request of the Company,
will submit to the jurisdiction of a court of competent jurisdiction within the United States. Nothing in this Article constitutes
or should be understood to constitute a waiver of the Reinsurer’s rights to commence an action in any court of competent
jurisdiction in the United States, to remove an action to a United States District Court, or to seek a transfer of a case to another
court as permitted by the laws of the United States or of any state in the United States. The Reinsurer, once the appropriate Court
is accepted by the Reinsurer or is determined by removal, transfer or otherwise, as provided for above, will comply with all requirements
necessary to give said Court jurisdiction and, in any suit instituted against any of the Subscribing Reinsurers upon this Contract,
will abide by the final decision of such Court or of any Appellate Court in the event of an appeal.

 

    	-23-

    	 

    
 

		C.	Further, pursuant to any statute of any state, territory or district of the United States which makes provision therefor, the
Reinsurer hereby designates the party named in its Interests and Liabilities Agreement, or if no party is named therein, the Superintendent,
Commissioner or Director of Insurance or other officer specified for that purpose in the statute, or his or her successor or successors
in office, as its true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted
by or on behalf of the Company or any beneficiary hereunder arising out of this Contract.

 

Article
27  - Confidentiality

 

		A.	The Reinsurer hereby acknowledges that the documents, information and data provided to it by the Company, whether directly
or through an authorized agent, in connection with the placement and execution of this Contract (“Confidential Information”)
are proprietary and confidential to the Company. Confidential Information shall not include documents, information or data that
the Reinsurer can show:

 

		1	Are publicly known or have become publicly known through no unauthorized act of the Reinsurer;

 

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

 

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

 

		B.	Absent the written consent of the Company, the Reinsurer shall not disclose any Confidential Information to any third parties,
excluding any affiliated companies, except:

 

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

 

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

 

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

 

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

 

Further, the Reinsurer agrees not to use any Confidential
Information for any purpose not related to the performance of its obligations or enforcement of its rights under this Contract.

 

    	-24-

    	 

    
 

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

 

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

 

Article
28  - Agency Agreement

 

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

 

Article
29  - Governing Law (BRMA 71B)

 

This Contract shall be governed by and construed in accordance
with the laws of the State of Texas.

 

Article
30  - Severability (BRMA 72E)

 

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

 

Article
31  - Entire Agreement

 

This written Contract constitutes the entire agreement between
the parties hereto with respect to the business being reinsured hereunder, and there are no understandings between the parties
hereto other than as expressed in this Contract. Any change or modification to this Contract will be made by amendment to this
Contract and signed by the parties hereto.

 

Article
32  - Notices and Contract Execution

 

		A.	Whenever a notice, statement, report or any other written communication is required by this Contract, unless otherwise specified,
such notice, statement, report or other written communication may be transmitted by certified or registered mail, nationally or
internationally recognized express delivery service, personal delivery, electronic mail, or facsimile. With the exception of notices
of termination, first class mail is also acceptable.

 

    	-25-

    	 

    
 

		B.	The use of any of the following shall constitute a valid execution of this Contract or any amendments thereto:

 

		1	Paper documents with an original ink signature;

 

		2	Facsimile or electronic copies of paper documents showing an original ink signature; and/or

 

		3	Electronic records with an electronic signature made via an electronic agent. For the purposes
of this Contract, the terms “electronic record,” "electronic signature” and “electronic agent”
shall have the meanings set forth in the Electronic Signatures in Global and National Commerce Act of 2000 or any amendments thereto.

 

		C.	This Contract may be executed in one or more counterparts, each of which, when duly executed, shall be deemed an original.

 

Article
33  - Intermediary

 

Aon Benfield Inc., or one of its affiliated corporations duly
licensed as a reinsurance intermediary, is hereby recognized as the Intermediary negotiating this Contract for all business hereunder.
All communications (including but not limited to notices, statements, premiums, return premiums, commissions, taxes, losses, loss
adjustment expense, salvages and loss settlements) relating to this Contract will be transmitted to the Company or the Reinsurer
through the Intermediary. Payments by the Company to the Intermediary will be deemed payment to the Reinsurer. Payments by the
Reinsurer to the Intermediary will be deemed payment to the Company only to the extent that such payments are actually received
by the Company.

 

In Witness Whereof, the Company by its duly authorized
representative has executed this Contract as of the date specified below:

 

This __________ day of __________ in the year __________.

 

Homeowners of America Insurance Company (for and on behalf of
the “Company”)

 

____________________________________________________

 

    	-26-

    	 

    

 

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

 

		1.	This Reinsurance does not cover any loss or liability accruing to the Reassured, directly or indirectly and whether as Insurer
or Reinsurer, from any Pool of Insurers or Reinsurers formed for the purpose of covering Atomic or Nuclear Energy risks.

 

		2.	Without in any way restricting the operation of paragraph (1) of this Clause, this Reinsurance does not cover any loss or liability
accruing to the Reassured, directly or indirectly and whether as Insurer or Reinsurer, from any insurance against Physical Damage
(including business interruption or consequential loss arising out of such Physical Damage) to:

 

		I.	Nuclear reactor power plants including all auxiliary property on the site, or

 

		II.	Any other nuclear reactor installation, including laboratories handling radioactive materials in connection with reactor installations,
and “critical facilities” as such, or

 

		III.	Installations for fabricating complete fuel elements or for processing substantial quantities of “special nuclear material,”
and for reprocessing, salvaging, chemically separating, storing or disposing of “spent” nuclear fuel or waste materials,
or

 

		IV.	Installations other than those listed in paragraph (2)111 above using substantial quantities of radioactive isotopes or other
products of nuclear fission.

 

		3.	Without in any way restricting the operations of paragraphs (1) and (2) hereof, this Reinsurance does not cover any loss or
liability by radioactive contamination accruing to the Reassured, directly or indirectly, and whether as Insurer or Reinsurer,
from any insurance on property which is on the same site as a nuclear reactor power plant or other nuclear installation and which
normally would be insured therewith except that this paragraph (3) shall not operate

 

		(a)	where Reassured does not have knowledge of such nuclear reactor power plant or nuclear installation, or

 

		(b)	where said insurance contains a provision excluding coverage for damage to property caused by or resulting from radioactive
contamination, however caused. However on and after 1st January 1960 this sub-paragraph (b) shall only apply provided the said
radioactive contamination exclusion provision has been approved by the Governmental Authority having jurisdiction thereof.

 

		4.	Without in any way restricting the operations of paragraphs (1), (2) and (3) hereof, this Reinsurance does not cover any loss
or liability by radioactive contamination accruing to the Reassured, directly or indirectly, and whether as Insurer or Reinsurer,
when such radioactive contamination is a named hazard specifically insured against

 

    	-27-

    	 

    
 

		5.	It is understood and agreed that this Clause shall not extend to risks using radioactive isotopes in any form where the nuclear
exposure is not considered by the Reassured to be the primary hazard.

 

		6.	The term “special nuclear material” shall have the meaning given it in the Atomic Energy Act of 1954 or by any
law amendatory thereof.

 

		7.	Reassured to be sole judge of what constitutes:

 

		(a)	substantial quantities, and

 

		(b)	the extent of installation, plant or site.

 

Note. Without in any way restricting the operation of
paragraph (1) hereof, it is understood and agreed that

 

		(a)	all policies issued by the Reassured on or before 31st December 1957 shall be free from the application of the other provisions
of this Clause until expiry date or 31st December 1960 whichever first occurs whereupon all the provisions of this Clause shall
apply.

 

		(b)	with respect to any risk located in Canada policies issued by the Reassured on or before 31st December 1958 shall be free from
the application of the other provisions of this Clause until expiry date or 31st December 1960 whichever first occurs whereupon
all the provisions of this Clause shall apply.

 

    	-28-

    	 

    
 

Pools, Associations and Syndicates Exclusion
Clause

 

Section A: 

 

Excluding:

 

		(a)	All business derived directly or indirectly from any Pool, Association or Syndicate which maintains its own reinsurance facilities.

 

		(b)	Any Pool or Scheme (whether voluntary or mandatory) formed after March 1, 1968 for the purpose of insuring property whether
on a country-wide basis or in respect of designated areas. This exclusion shall not apply to so-called Automobile Insurance Plans
or other Pools formed to provide coverage for Automobile Physical Damage.

 

Section B: 

 

It is agreed that business written by the Company for the same
perils, which is known at the time to be insured by, or in excess of underlying amounts placed in the following Pools, Associations
or Syndicates, whether by way of insurance or reinsurance, is excluded hereunder.

 

Industrial Risk Insurers,

Associated Factory Mutuals,

Improved Risk Mutuals,

Any Pool, Association or Syndicate formed for the purpose of writing

Oil, Gas or Petro-Chemical Plants and/or Oil or Gas Drilling Rigs,

United States Aircraft Insurance Group,

Canadian Aircraft Insurance Group,

Associated Aviation Underwriters,

American Aviation Underwriters.

 

Section B does not apply: 

 

		(a)	Where the Total Insured Value over all interests of the risk in question is less than $250,000,000.

 

		(b)	To interests traditionally underwritten as Inland Marine or stock and/or contents written on a blanket basis.

 

		(c)	To Contingent Business Interruption, except when the Company is aware that the key location is known at the time to be insured
in any Pool, Association or Syndicate named above, other than as provided for under Section B(a).

 

		(d)	To risks as follows:

 

    	-29-

    	 

    
 

Offices, Hotels, Apartments, Hospitals, Educational
Establishments, Public Utilities (other than railroad schedules) and builder’s risks on the classes of risks specified in
this subsection (d) only.

 

Where this clause attaches to Catastrophe Excesses, the following
Section C is added:

 

Section C: 

 

Nevertheless the Reinsurer specifically agrees that liability
accruing to the Company from its participation in residual market mechanisms including but not limited to:

 

		(1)	The following so-called “Coastal Pools”: |

Alabama Insurance Underwriting Association Louisiana Citizens Property Insurance Corporation Mississippi Windstorm Underwriting
Association North Carolina Insurance Underwriting Association South Carolina Windstorm and Hail Underwriting Association

 

Texas Windstorm Insurance Association

 

AND

 

		(2)	All “Fair Plan” and “Rural Risk Plan” business

 

AND

 

		(3)	Citizens Property Insurance
Corporation (“CPIC”) and the California Earthquake Authority (“CEA”)

 

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

 

		(i)	The inability of any other participant in such “Coastal Pool” and/or “Fair Plan” and/or “Rural
Risk Plan” and/or Residual Market Mechanisms to meet its liability.

 

		(ii)	Any claim against such “Coastal Pool” and/or “Fair Plan” and/or “Rural Risk Plan” and/or
Residual Market Mechanisms, or any participant therein, including the Company, whether by way of subrogation or otherwise, brought
by or on behalf of any insolvency fund.

 

Section D: 

 

		(1)	Notwithstanding Section C above, in respect of the CEA, where an assessment is made against the Company by the CEA, the Company
may include in its Ultimate Net Loss only that assessment directly attributable to each separate loss occurrence covered hereunder.
The Company’s initial capital contribution to the CEA shall not be included in the Ultimate Net Loss.

 

    	-30-

    	 

    
 

		(2)	Notwithstanding Section C above, in respect of CPIC, where an assessment is made against the Company by CPIC, the maximum loss
that the Company may include in the Ultimate Net Loss in respect of any loss occurrence hereunder shall not exceed the lesser of:

 

		(a)	The Company’s assessment from CPIC for the accounting year in which the loss occurrence commenced, or

 

		(b)	The product of the following:

 

		(i)	The Company’s percentage participation in CPIC for the accounting year in which the loss occurrence commenced; and

 

		(ii)	CPIC’s total losses in such loss occurrence.

 

Notwithstanding Section C above, in respect of CPIC, the Ultimate
Net Loss hereunder shall not include any monies expended to purchase or retire bonds as a consequence of being a member of CPIC.
For the purposes of this Contract, the Company may not include in the Ultimate Net Loss any assessment or any percentage assessment
levied by CPIC to meet the obligations of an insolvent insurer member or other party, or to meet any obligations arising from the
deferment by CPIC of the collection of monies.

 

	NOTES: 	Wherever used herein the terms: 
	 	“Company”	Shall be understood to mean “Company,” “Reinsured,” “Reassured” or whatever other term is used in the attached reinsurance document to designate the reinsured company or companies. 
	 	“Agreement”	Shall be understood to mean “Agreement,” “Contract,” “Policy” or whatever other term is used to designate the attached reinsurance document.
	 	“Reinsurers”	Shall be understood to mean “Reinsurers,” “Underwriters” or whatever other term is used in the attached reinsurance document to designate the reinsurer or reinsurers. 

 

    	-31-

    	 

    

 

Pollution and Seepage Exclusion Clause

 

This Contract excludes loss and/or damage and/or costs and/or
expenses arising from seepage and/or pollution and/or contamination, other than contamination from smoke. Nevertheless, this exclusion
does not preclude payment of the cost of removing debris of property damaged by a loss otherwise covered hereunder, subject always
to a limit of 25% of the Company’s property loss under the applicable original policy.

 

    	-32-

    	 

    

 

Interests and Liabilities Agreement

 

attached to and forming part of the

 

Top Layer Property Catastrophe Excess
of Loss

Reinsurance Contract

Effective: August 15, 2012

 

entered into by and between

 

Homeowners of America Insurance Company

Irving, Texas

 

and

 

Certain Insurance Companies

shown in the Signing Page(s) attached hereto

(hereinafter referred to as the “Subscribing Reinsurer’’)

 

The Subscribing Reinsurer hereby accepts a 50.0% share
in the interests and liabilities of the “Reinsurer” as set forth in the attached Contract captioned above.

 

This Agreement shall become effective at 12:01 a.m., Central
Standard Time, August 15, 2012, and shall continue in force until 12:01 a.m., Central Standard Time, April 1, 2013, unless earlier
terminated in accordance with the provisions of the attached Contract.

 

As respects SCOR Global P&C SE, Paris, Zurich Branch only,
the provisions of the Service of Suit Article in the attached Contract shall apply to the Subscribing Reinsurer, except
that service of process shall be made upon General Counsel, SCOR Reinsurance Company, 199 Water Street, New York, NY 10038, and,
where required by law, shall additionally be made upon the Superintendent, Commissioner, or Director of Insurance in the state
of the Company’s domicile.

 

Signed for and on behalf of the Subscribing Reinsurer
in the Signing Page(s) attached hereto.

 

 

    	-33-

    	 

    
 

Terrorism Exclusion

(Property Treaty Reinsurance)

 

Notwithstanding any provision to the contrary within this Contract
or any amendment thereto, it is agreed that this Contract excludes loss, damage, cost or expense directly or indirectly caused
by, contributed to by, resulting from, or arising out of or in connection with any act of terrorism, as defined herein, regardless
of any other cause or event contributing concurrently or in any other sequence to the loss.

 

An act of terrorism includes any act, or preparation in respect
of action, or threat of action designed to influence the government de jure or de facto of any nation or any political division
thereof, or in pursuit of political, religious, ideological or similar purposes to intimidate the public or a section of the public
of any nation by any person or group(s) of persons whether acting alone or on behalf of or in connection with any organization(s)
or government(s) de jure or de facto, and which:

 

		1.	Involves violence against one or more persons; or

 

		2.	Involves damage to property; or

 

		3.	Endangers life other than that of the person committing the action; or

 

		4.	Creates a risk to health or safety of the public or a section of the public; or

 

		5.	Is designed to interfere with or to disrupt an electronic system.

 

This Contract also excludes loss, damage, cost, or expense directly
or indirectly caused by, contributed to by, resulting from, or arising out of or in connection with any action in controlling,
preventing, suppressing, retaliating against, or responding to any act of terrorism.

 

Notwithstanding the above and subject otherwise to the terms,
conditions, and limitations of this Contract, in respect only of personal lines this Contract will pay actual loss or damage (but
not related cost or expense) caused by any act of terrorism provided such act is not directly or indirectly caused by, contributed
to by, resulting from, or arising out of or in connection with biological, chemical, radioactive or nuclear pollution or contamination
or explosion.

 

    	-34-

    	 

    

 

Signing Page

 

attached to and forming part of the

 

Interests and Liabilities Agreement

 

with respect to the

 

Top Layer Property Catastrophe Excess
of Loss

Reinsurance Contract

Effective: August 15, 2012 entered into by and between

 

Homeowners of America Insurance Company,
et al.,

as specified in the above-captioned Contract

 

and

 

Certain Insurance Companies

 

(Re)Insurers Liability Clause - LMA3333

 

(Re)Insurers liability several not joint

 

The liability of a (re)insurer under this contract is several
and not joint with other (re)insurers party to this contract. A (re)insurer is liable only for the proportion of liability it has
underwritten. A (re)insurer is not jointly liable for the proportion of liability underwritten by any other (re)insurer. Nor is
a (re)insurer otherwise responsible for any liability of any other (re)insurer that may underwrite this contract.

 

The proportion of liability under this contract underwritten
by a (re)insurer (or, in the case of a Lloyd’s syndicate, the total of the proportions underwritten by all the members of
the syndicate taken together) is shown next to its stamp. This is subject always to the provision concerning “signing”
below.

 

In the case of a Lloyd’s syndicate, each member of the
syndicate (rather than the syndicate itself) is a (re)insurer. Each member has underwritten a proportion of the total shown for
the syndicate (that total itself being the total of the proportions underwritten by all the members of the syndicate taken together).
The liability of each member of the syndicate is several and not joint with other members. A member is liable only for that member’s
proportion. A member is not jointly liable for any other member’s proportion. Nor is any member otherwise responsible for
any liability of any other (re)insurer that may underwrite this contract. The business address of each member is Lloyd’s,
One Lime Street, London EC3M 7HA. The identity of each member of a Lloyd’s syndicate and their respective proportion may
be obtained by writing to Market Services, Lloyd’s, at the above address.

 

    	-35-

    	 

    
 

Proportion of liability

 

Unless there is “signing” (see below), the proportion
of liability under this contract underwritten by each (re)insurer (or, in the case of a Lloyd’s syndicate, the total of the
proportions underwritten by all the members of the syndicate taken together) is shown next to its stamp and is referred to as its
“written line”.

 

Where this contract permits, written lines, or certain written
lines, may be adjusted (“signed”). In that case a schedule is to be appended to this contract to show the definitive
proportion of liability under this contract underwritten by each (re)insurer (or, in the case of a Lloyd’s syndicate, the
total of the proportions underwritten by all the members of the syndicate taken together). A definitive proportion (or, in the
case of a Lloyd’s syndicate, the total of the proportions underwritten by all the members of a Lloyd’s syndicate taken
together) is referred to as a “signed line”. The signed lines shown in the schedule will prevail over the written
lines unless a proven error in calculation has occurred.

 

    	-36-

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