Document:

Software License

 Exhibit 10.9 
 SOFTWARE LICENSE 
 AND MAINTENANCE 
 AGREEMENT 
 This Software License and Maintenance Agreement (together with all exhibits and other attachments hereto, the “Agreement”) is executed on this 8th day of April, 2008 with an effective date of November 1, 2007 (“Effective Date”), by and between Homeowners Choice, Inc. (“HCI”) and Scorpio Systems, Inc (“Scorpio”). 
 Recitals 
 A.      HCI desires to obtain a license from Scorpio to certain software used in insurance company administration (the “Software”); 
 B.      Scorpio is willing to license the Software to HCI upon the terms and conditions set forth in this Agreement. 
 Agreement 
 In consideration for the representations, warranties
and performance of the obligations contained herein, the receipt and sufficiency of which are hereby acknowledged, HCI and Scorpio agree as follows: 
 1.      Definitions. When used in this Agreement, the following capitalized terms shall have the respective meanings set forth below: 
 1.1.      “Derivative Works” means a work consisting of any correction, modification,
update, upgrade, enhancement, improvement, translation, adaptation, release or other change relating to the Licensed Software. 
 1.2.      “Licensed Software” means the Source and Object Code for the Software, programming, and other applications described in Exhibit A and all enhancements, updates, bug fixes,
corrections, and new releases and versions thereto. 
 1.3.      “Object Code”
means computer programs assembled or compiled, which are readable and usable by machines, but not generally readable by humans without reverse-assembly, reverse compiling, or reverse-engineering. 
 1.4.      “Source Code” shall mean, with respect to the Licensed Software, the source code
of such software and all related compiler command files, build scripts, scripts relating to the operation and maintenance of such application, application programming interface (API), graphical user interface (GUI), object libraries, all relevant
instructions on building the object code of such application, and all documentation relating to the foregoing, such that collectively the foregoing will be sufficient to enable a person possessing reasonable skill and expertise in computer software
and information technology to build, load and operate the machine-executable object code of such application, to maintain and support such application and to effectively use all functions 

  

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and features of such software. All written documentation provided in support of the Source Code shall be in English. 
 2.      License Grant. In exchange for the consideration set forth in Section 3,
(“Consideration”), Scorpio hereby grants HCI during the Term an exclusive, perpetual, nontransferable, worldwide license to use the Licensed Software in connection with policy administration services performed with regards to insurance
policies owned by HCI or any wholly owned subsidiary of HCI. HCI shall not have the right to and shall not use the Licensed Software in connection with insurance policies owned by any party other than HCI or any of HCI’s wholly owned
subsidiaries. HCI shall not have the right to transfer the Licensed Software or to license the Licensed Software to any party. 
 3.      Consideration. The consideration to be paid by HCI to Scorpio is a license fee of one dollar ($1.00) per policy beginning on the Effective Date generated as a (i) new policy issued or
(ii) paid renewal policy. This fee shall be paid on a quarterly basis to Scorpio with the first payment due on March 31, 2008. 
 4.      Ownership of Derivative Works. To the extent HCI or its agents conceive or create Derivative Works of the Licensed Software, HCI acknowledges that such Derivative Works
shall be solely and exclusively owned by Scorpio. HCI will receive the same license rights in Derivative Works as conveyed with regard to Licensed Software pursuant to this Agreement. Otherwise, HCI shall have no right to use or otherwise exploit
such Derivative Works. 
 5.      Maintenance. Scorpio shall use commercially reasonable
efforts to maintain the Licensed Software so that it performs the contemplated portion of all services listed on Exhibit A in a commercially reasonable manner. 
 6.      Updates and Enhancements. During the Term, and at no additional charge, Scorpio shall promptly provide HCI with all enhancements, updates, bug fixes,
corrections, and new releases and versions of the Licensed Software as they become generally available in Source Code and Object Code form. 
 7.      Exclusivity. From the Effective Date until termination of this License Agreement, HCI shall have the exclusive right to use the Licensed Software worldwide. 
 8.      Term and Termination. 
 8.1.      Term. This Agreement shall commence on the Effective Date and shall be perpetual until
terminated in accordance herewith (“Term”). 
 8.2.      Termination by
Notice. Either party may terminate this Agreement upon six (6) months written notice. 
 8.3.      Termination for Non-Performance. In the event that either party breaches any of the terms hereof (including but not limited to the failure of Scorpio to 

  

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provide the maintenance required under Section 5 hereof), then either party (whether in breach or not) may terminate this Agreement upon thirty
(30) days written notice. 
 8.4.      Termination upon Change of Control. Scorpio
shall have the right to terminate this Agreement upon thirty (30) days written notice to HCI given at any time within three (3) months following the occurrence of a chance of control of HCI. For purposes hereof, a change of control of HCI
shall mean any of the following: 
 (A) any person, entity, or “group” (as described in Rule 13d-5(b)(1)
promulgated under the Securities Exchange Act of 1934, as amended), other than an affiliate or subsidiary of HCI or an employee benefit plan established or maintained by HCI, acquires more than 50.0% of the combined voting power of HCI’s then
outstanding securities in one transaction or in a series of related transactions; 
 (B) a merger or consolidation of HCI
with or into another corporation unless, after giving effect to such transaction, the stockholders of HCI immediately prior to such transaction own more than 50% of the aggregate voting power of HCI or the successor entity(ies) of such
transaction(s); 
 (C) a sale or disposition of all or substantially all of HCI’s assets; or 
 (D) individuals who on the date hereof constitute the board of directors of HCI cease for any reason to constitute at least a majority
thereof. 
 8.5.      Survival of Expiration or Termination. Sections 3 (Consideration),
10 (Confidentiality), 11 (Warranty), 13 (Indemnity Obligations), 14 (Limitation of Liability) and any other provisions expressly or implicitly intended to survive termination or expiration of this Agreement will survive any termination or
expiration of this Agreement. 
 9.      Taxes. HCI shall pay any sales taxes payable
with respect to payments made to Scorpio hereunder. 
 10.      Confidentiality. 

 10.1.      Confidential Information. For the purposes of this Agreement,
“Confidential Information” means information about the disclosing party’s (or its affiliates’ or suppliers’) business or activities that is proprietary and confidential, which shall include (i) all business, financial,
technical and other information of a party which is either marked or designated by such party as “confidential” or “proprietary” or which, by the nature of the circumstances surrounding the disclosure, ought in good faith to be
treated as confidential; (ii) the terms of and performance under this Agreement; and (iii) the Source Code and Object Code to the Licensed Software. 
 10.2.      Not Confidential Information. Confidential Information shall not 

  

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include information that (i) is in or enters the public domain without breach of this Agreement, (ii) the receiving party lawfully receives from a
third party without restriction on disclosure and without breach of a nondisclosure obligation, (iii) the receiving party knew prior to receiving such information from the disclosing party, or (iv) the receiving party develops
independently without use of or reference to any Confidential Information of the other party. 
 10.3.      Obligations. Each party agrees (i) that it and its employees shall not (A) disclose Confidential Information of the other party to, and shall prevent disclosure to, any third party
or (B) use any Confidential Information disclosed to it by the other party except as expressly permitted in this Agreement and (ii) that it shall take all reasonable measures to maintain the confidentiality of all Confidential Information
of the other party in its possession or control, which shall in no event be less than the measures it uses to maintain the confidentiality of its own information of similar importance. 
 10.4.      Exceptions. Notwithstanding the foregoing, each party may disclose Confidential
Information (i) to the extent required by a court of competent jurisdiction or other governmental authority or otherwise as required by law; provided, however that the party required to so disclose Confidential Information of the other party
shall use commercially reasonable efforts to minimize such disclosure and shall provide written notice of such disclosure and consult with and assist the other party, at the other party’s expense, in obtaining a protective order prior to such
disclosure or (ii) on a “need-to-know” basis under an obligation of confidentiality to its legal counsel, accountants, banks and other financing sources and their advisors. 
 11.      Warranty. Each party warrants and represents to the other party that it has full power and
authority to enter into this Agreement and to carry out its obligations hereunder. Scorpio warrants and represents to HCI that Scorpio has and shall have during the Term, sufficient rights in the Licensed Software to grant HCI the rights set forth
in this Agreement, including any necessary approval, consent, authorization, release, clearance or license of any third party and any release related to any rights of privacy or publicity, as may be necessary for Scorpio to enter into this
Agreement. Scorpio warrants that the Licensed Software shall perform the contemplated portion of all services listed on Exhibit A in a commercially reasonable manner. Scorpio warrants that the Licensed Software will not: (i) infringe on any
third party’s intellectual property rights; (ii) violate any law, statute, ordinance or regulation, including without limitation the laws and regulations governing export control; (iii) be defamatory or trade libelous; (iv) be
pornographic or obscene; or (v) contain viruses, Trojan horses, worms, time bombs, spyware or other similar harmful or deleterious programming routines. 
 12.      Warranty Disclaimer. EXCEPT AS EXPRESSLY SET FORTH IN SECTION 11, NEITHER PARTY MAKES, AND EACH PARTY SPECIFICALLY DISCLAIMS, ANY REPRESENTATIONS OR
WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, QUIET ENJOYMENT, QUALITY OF 

  

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INFORMATION, TITLE AND NON-INFRINGEMENT, AND IMPLIED WARRANTIES ARISING FROM COURSE OF DEALING OR PERFORMANCE. NEITHER PARTY MAKES ANY REPRESENTATION OR
WARRANTY TO THE OTHER REGARDING THE EFFECT THIS AGREEMENT AND THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED HEREBY MAY HAVE UPON THE FOREIGN, FEDERAL, STATE OR LOCAL TAX LIABILITY OF THE OTHER. 
 13.      Indemnity Obligations.  
 13.1.      Indemnity. Each party shall indemnify, defend and hold harmless the other party hereto
and its affiliates and the respective officers, directors, consultants, agents and employees of each from and against any and all claims, suits, liability, damages and/or costs (including but not limited to, attorneys fees) arising from the first
party’s breach of any warranty, representation or obligation under this Agreement. In order for any to be indemnified hereunder for any claim, such party must notify the other party within twelve months of the earlier of: (i) the date the
first party first became aware of the claim: or (ii) the date such party should have become aware of the claim using reasonable due diligence. 
 13.2.      Adequate Remedy. The parties agree that any breach of either of the parties’ obligations regarding confidentiality may result in irreparable injury for which there
is no adequate remedy at law. Therefore, in the event of any breach or threatened breach of a party’s obligations regarding the other party’s confidentiality, the aggrieved party will be entitled to seek injunctive relief, in addition to
any other remedies to which it may be entitled. 
 14.      Limitation of Liability. THE
AGGREGARTE LIABILITY OF SCORPIO FOR ANY AND ALL LOSSES, CLAIMS, SUITS, CONTROVERSIES, BREACHES OR DAMAGES FOR ANY CAUSE WHATSOEVER (INCLUDING, BUT NOT LIMITED TO, THOSE ARISING OUT OF OR RELATED TO THIS AGREEMENT) AND REGARDLESS OF THE FORM OF
ACTION OR LEGAL THEORY, SHALL BE LIMITED TO THE ACTUAL DIRECT OUT-OF-POCKET EXPENSES THAT ARE REASONABLY INCURRED BY HCI AND SHALL NOT EXCEED THE AGGREGATE AMOUNTS PAID BY HCI TO SCORPIO UNDER THIS AGREEMENT IN THE TWELVE MONTH PERIOD PRECEEDING HCI
NOTIFYING SCORPIO OF THE CLAIM. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES, WHETHER BASED ON BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), OR OTHERWISE, AND
WHETHER OR NOT THAT PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. 
 15.      General.  
 15.1.      Relationship. This Agreement is not intended to create, and shall 

  

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not be deemed or treated as creating, a partnership, franchise, joint venture, employment contract or any other relationship between the parties other than
the independent contractor relationship expressly provided for in this Agreement. 
 15.2.      Governing Law and Venue. This Agreement shall be governed by the laws of Florida, United States, without giving effect to applicable conflict of laws provisions. With respect to any litigation
arising out of or relating to this Agreement, each party agrees that it shall be filed in and heard by the state or federal courts with jurisdiction to hear such suits located in Tampa, Florida. 
 15.3.      Entire Agreement; Amendments. This Agreement, including any exhibits and other
attachments thereto, constitutes the entire understanding and agreement with respect to the subject matter, and supersedes any and all prior or contemporaneous representations, understandings and agreements whether oral or written between the
parties relating to the subject matter of this Agreement, all of which are merged in this Agreement. 
 The parties have duly executed this
Agreement by the authorized signatures below. 
  

			
	 Homeowners Choice, Inc.

		
	 By:
	 	 /s/ Frank McCahill III

		
	 Name:
	 	 Frank McCahill III

		
	 Title:
	 	 President

	
	 Scorpio Systems, Inc.

		
	 By:
	 	 /s/ Paresh Patel

		
	 Name:
	 	 Paresh Patel

		
	 Title:
	 	 President

  

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 EXHIBIT A 
 TO 
 SOFTWARE LICENSE 
 AND 
 MAINTENANCE AGREEMENT 
 The Licensed Software shall perform the contemplated portion of the following insurance policy administrative services: 
  

	 	A)	 Policy support; 

	 	B)	 Revenue calculations; 

	 	C)	 Issuance of policy renewals; 

	 	D)	 Issuance of late payment notices; 

	 	E)	 Issuance of cancellation notices; 

	 	F)	 Change of mortgages; 

	 	G)	 Addition of insureds; 

	 	H)	 Management reports; and 

	 	I)	 Collection reports. 

  

 7PLA Non -Bonus Assumption Agreement

 Exhibit 10.10 
 PLA Non-Bonus Assumption Agreement 
 

 
 THIS ASSUMPTION AGREEMENT (the “Agreement”) is executed as of the 19 day of June, 2007
(“Execution Date”) by and between Homeowners Choice Property and Casualty Insurance Company, a Florida licensed and authorized insurance company (“Insurer”); and Citizens Property Insurance Corporation, an entity created by the
Legislature of the State of Florida pursuant to Subsection 627.351(6); and any successor entity (“CITIZENS”). 
 RECITALS

 WHEREAS, Insurer and CITIZENS desire, pursuant to this Agreement, to have the Insurer remove up to a maximum of 20,000 Policies by
Assumption from CITIZENS in accordance with the terms and conditions of this Agreement. 
 WHEREAS, CITIZENS desires to allow qualifying
insurers to participate in the Program and remove policies from CITIZENS; 
 WHEREAS, Insurer has made application to CITIZENS to participate
in the Program; and 
 WHEREAS, CITIZENS finds the Insurer eligible to participate in the Program. 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, the Parties hereto do covenant and agree as follows:

 DEFINITIONS 
 For purposes of this Agreement: 
 A. “Aggregate Losses” shall mean those losses which include, but are not Limited to,
compensatory punitive, bad faith and other damages arising from, and all loss adjustment expenses relating to the adjustment or defense of any and all claims with respect to losses on policies of insurance of Citizens or Issuer. 
 B. “Assumed Premium” shall mean Initial Assumed Premium as adjusted by a monthly remittance and bordereau process developed by the Insurer and
CITIZENS to account for policy cancellations, return premiums, policyholder requested coverage changes, and Returned Policies after the Assumption Date, with the positive and negative adjustments. 
  

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 PLA Non-Bonus Assumption Agreement 
  
 C. “Assumption” shall mean the transference of risks from CITIZENS to the Insurer on a Removed Policy, whereby the
Insurer is deemed to have directly issued the Removed Policy as provided in subparagraph (p)6 of Subsection 627.351(6) (as added by Chapter 2007-1 Laws of Florida). 
 D. “Assumption Date” shall mean that date upon which the Assumption of a Removed Policy occurs. 
 E. “Assumption Procedures” shall mean those procedures applicable to the depopulation of CITIZENS policies under subparagraphs (p)3-6 of Subsection 627.351(6), Section 627.3511, and Section 627.3517, Florida Statutes,
and this Agreement, as set forth in Exhibit D attached hereto. 
 F. “Ceding Commission Rate” shall be as defined in Exhibit B
attached hereto. 
 G. “Independent Auditor” shall mean a certified public accountant or certified public accounting firm, licensed
in the State of Florida, to perform professional auditing services and who is without bias with respect to the outcome of the audit services and with respect to the Insurer. 
 H. “Initial Assumed Premium” shall mean Written Premium, less the Written Premium earned by CITIZENS with respect to the Removed Policies as of
the respective Assumption Dates of such policies. 
 I. “Initial Notice” shall mean a notice, in substantially form attached as
Exhibit F, mailed to a policyholders more than thirty days prior to the Assumption Date of a Tagged Policy. 
 J. “Office” shall
mean the Florida Office of Insurance Regulation. 
 K. “Parties” shall mean the Insurer and CITIZENS. 
 L. “Plan” shall mean the Plan of Operation of CITIZENS, as amended. 
 M. “Rejected Policy” shall mean any Tagged Policy the offer of which has been rejected by a policyholder as provided in section 3.E. of this
Agreement. 
 N. “Replacement Policy” shall mean a policy offered or issued by Insurer on its own policy forms, to take effect upon
the expiration or cancellation of a Removed Policy. 
 O. “Removed Policy or “Removed Policies” shall mean a CITIZENS Policy
that is assumed by the Insurer under this Agreement and is not a Rejected Policy. 
 P. “Program” shall mean any program for the
depopulation of policies by assumption or other take-out as approved by CITIZENS and the Office pursuant to subparagraph (p)3-6 of Subsection 627.351(6). 
 Q. “Returned Policy” shall mean a Removed Policy that is returned to Citizens as provided in section 3.F. of this Agreement. 
  

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 PLA Non-Bonus Assumption Agreement 
  
 R. “Subsection 627.351(6)” shall mean subsection 627.351(6), Florida Statutes (2006), which is Citizens’
enabling statute. 
 S. “Tagged Policies” shall mean the Policies identified by CITIZENS policy number and expiration date on
Exhibit A or any supplement thereto. 
 T. “Written Premium” shall mean the gross written premium of CITIZENS on the Removed
Policies, less policy cancellation and return premiums, as of the respective Assumption Dates of such polices. Written Premium shall not include fees or surcharges invoiced for collection by CITIZENS on the Policies, including a(n)
(i) market equalization surcharge, (ii) CITIZENS policyholder surcharge, (iii) nonhomestead policyholder assessment, (iv) Citizens additional policyholder assessment, (v) regular assessment, (vi) emergency assessment,
(vii) tax-exempt surcharge, (viii) reinsurance or catastrophe financing surcharge, or (ix) other fees, taxes, assessments, or surcharges imposed on CITIZENS policyholders as determined by CITIZENS. 
 TERMS AND CONDITIONS 
 1. Term
of this Agreement. This Agreement shall terminate 18 months from the date it is signed. No Assumptions may occur after the Agreement terminates. 
 2. Agreement to Remove Policies. 
 A. The Insurer and CITIZENS shall, prior to an Assumption
Date, agree upon those Tagged Policies eligible to be removed under the Program by the Insurer on the Assumption Date and shall set forth those Policies by CITIZENS policy number and expiration date on Exhibit A or any supplement thereto, which
Exhibit A or supplement shall be attached hereto and made a part hereof by reference. 
 B. Pursuant to this Agreement and the Assumption
Procedures, the Insurer shall remove by Assumption all of the Tagged Policies set forth on Exhibit A or supplements thereto, if available for removal on the Assumption Date pursuant to this Agreement and as approved by the Office. 
 3. Terms of Assumption. 
 A.
Liabilities. 
 (i) With respect to a Removed Policy, the Insurer is liable and obligated to pay all Aggregate Losses occurring on or
after 12:01 A.M. Eastern Standard Time on the Assumption Date of a Removed Policy and CITIZENS has no obligation or liability with respect to such Aggregate Losses. 
 (ii) The Insurer, in addition, agrees to assume and undertake all other obligations with respect to the Removed Policies in the manner provided herein. 
 (iii) CITIZENS shall remain liable for all Aggregate Losses for the Removed Policies occurring prior to the Assumption Date, and all Aggregate Losses
for the Rejected Policies and the Returned Policies, and the Insurer shall have no responsibility with respect to such losses. 
 (iv) The
Insurer shall comply with all applicable Assumption Procedures. 
  

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 PLA Non-Bonus Assumption Agreement 
  
 B. Notices. 
 (i) The cost of any notice and ancillary documentation to current CITIZENS policyholders to effectuate Assumption of the Policies shall be borne equally by the Parties, except that the cost of the Initial Notice shall be borne solely by the
Insurer. If CITIZENS bears the cost for any expenditures, the Insurer agrees that its portion of such costs may be withheld from any Assumed Premium paid to Insurer by CITIZENS pursuant to this Agreement or any amendments or addenda to this
Agreement. In the event CITIZENS, for whatever reason, does not withhold the Insurer’s portion of such cost from any Assumed Premium paid to Insurer, Insurer agrees to pay said sum to CITIZENS within thirty (30) days of its receipt of a
billing statement from CITIZENS. 
 (ii) The parties shall coordinate the mailing of any documentation or notices required by this
Agreement. 
 C. Assumed Premium. 
 (i) CITIZENS shall pay by wire transfer to the Insurer the Assumed Premium multiplied by 1,000 minus the applicable Ceding Commission Rate on or before the 20th day following the Assumption Date. Any subsequent
amounts due to or from CITIZENS as a result of the monthly remittance and bordereau process shall be remitted to the appropriate Party net of Ceding Commission within ten (10) days following the end of each month without interest. 

D. Servicing of Policies. Commencing on the Assumption date of a Removed Policy: 
 (i) Until a Removed Policy is renewed onto an Insurers policy form, on behalf of the Insurer, CITIZENS shall process endorsements and cancellations and
provide other policy services with respect to the Removed Policy. The consideration for services to be performed by CITIZENS on behalf of the Insurer is specifically encompassed in the Ceding Commission Rate referenced in Exhibit B attached hereto.

 (ii) The Insurer is responsible for offering and processing offers of renewal coverage with respect to its Replacement Policies,
utilizing its approved rates and forms. Insurer is responsible for all policyholder services with respect to its Replacement Policies. 
 E.
Rejected Policies. 
 The parties acknowledge that policyholders of Tagged Policies have the right to reject Insurer’s offer of
coverage and to remain policyholders of Citizens, Accordingly, Insurer shall mail to the policyholders the Initial Notice disclosing such right. After the mailing of the Initial Notice, and prior to the Assumption Date, the Insurer shall be
responsible for obtaining written confirmation from any Policyholder requesting that their Policy not be removed from CITIZENS. Such information shall be remitted to CITIZENS in an electronic format acceptable to CITIZENS. 
 F. Returned Policies. 
 Any
policyholder under a Removed Policy may return to CITIZENS within thirty days after the Assumption Date and shall be reinstated by CITIZENS. The insurer shall 

  

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 PLA Non-Bonus Assumption Agreement 
  
 
process all such received policyholder requests to return to CITIZENS and forward such requests, along with the appropriate unearned premium attributable to
the Returned Policy, on a monthly basis to CITIZENS in an electronic format acceptable to CITIZENS. After the thirty-day period following an Assumption Date, but prior to the date on which they are renewed onto a Replacement Policy issued by the
Insurer, any assumed policyholder that elects to return to CITIZENS may cancel their Policy with the Insurer, and may make application to CITIZENS for a new Policy, and shall be accepted for coverage by CITIZENS if otherwise eligible. 
 G. Claims Servicing. 
 (i) CITIZENS
is solely responsible for the servicing of claims for losses occurring (a) prior to the Assumption Date under a Removed Policy, (b) at any time under a Rejected Policy, and (c) at any time under a Returned Policy. 
 (ii) Insurer is solely responsible for the servicing of claims for losses occurring on or after an Assumption Date under a Removed Policy. CITIZENS
shall have no responsibility for payment of losses or loss adjustment expenses or for the servicing of claims with respect to losses occurring under any Removed Policy on or after the Assumption Date. 
 (iii) CITIZENS agrees that in instances where the sharing of information will facilitate the resolution of a claim which has occurred after the
Assumption Date, and in accordance with applicable state and federal laws, it will share prior claims, underwriting and other information with the Insurer. CITIZENS reserves the right at any time to deny access to any and all such information or to
seek the permission of the Policyholder for release of such information. Insurer agrees to treat all information provided to them as confidential and certifies that all such information provided to them by CITIZENS shall be used strictly to adjust a
claim and for no other purpose. 
 (iv) With regard to losses occurring on Removed Policies after the Assumption Date, CITIZENS shall give
notice promptly to the Insurer of any claim by a third party or the commencement of any legal proceedings against CITIZENS with respect to such claim. The insurer shall have the exclusive right to control the contest and defense for any such claim
incurred or litigation Initiated as of the Assumption Date. The liability of the Insurer under the Removed Policies shall always follow that of CITIZENS, and any error or omission of CITIZENS or Its agents shall in no way relieve the Insurer of its
liability or obligations in respect of the matters affected by such errors or omissions, it being understood and agreed that the Insurer shall follow and share the same fortune as CITIZENS under all circumstances. 
 (v) CITIZENS agrees to assign to the Insurer any and all salvage and subrogation rights arising with respect to losses occurring on or after an
Assumption Date, which CITIZENS may have with respect to the Removed Policies. 
 H. Conditions to Closing. 
 The following conditions must be met prior to an Assumption Date: 
 (i) Approval by the Office of an Assumption by Issuance of a Consent Order or letter, which Consent Order or letter shall be attached hereto as Exhibit C. 
  

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 PLA Non-Bonus Assumption Agreement 
  
 (ii) Satisfactory compliance with all requirements of CITIZENS for participation in the Assumption. 
 (iii) The mailing, more than thirty days in advance of the Assumption Date, of the Initial Notice to each putative Policyholder of a Tagged Policy.

 I. Implementation. 
 (i) The parties hereto acknowledge that, pursuant to all applicable laws and this Agreement, CITIZENS will use its sole judgment and discretion in implementing the Assumption Procedures for participating Insurers. 
 (ii) Should the parties fail to agree on the Tagged Policies to be set forth on Exhibit A, no obligation shall be created pursuant to this Agreement.

 (iii) The Insurer and CITIZENS agree to allow the Insurer to supplement Exhibit A from time to time with lists of additional Tagged
Policies, but such additional Tagged Policies must be designated and assumed by the Insurer not later than eighteen (18) months from the initial Assumption Date. All Assumptions for each supplement to Exhibit A (e.g., Exhibit A-1, A-2,
etc.) shall be in accordance with the terms and provisions of this Agreement and the Assumption Procedures. The Policies so identified in any such supplement to Exhibit A shall be treated as Removed Policies as of the date of their Assumption for
the purposes of this Agreement. All such supplements to this Agreement shall be executed in writing by the Parties to effectuate and document such additional Assumptions. 
 (iv) CITIZENS shall not enter into an agreement with any other insurer for the removal of the Tagged Policies unless such policies are not removed by
the Insurer in accordance with the terms and provisions of this Agreement, or are Rejected Policies or Returned Policies or are written new by Citizens after their removal by Insurer. 
 4. Conditions of Assumption. 
 A. The Insurer shall remove the Removed Policies by Assumption in accordance with this Agreement and the Assumption Procedures and shall offer to renew the Insurer’s Replacement Policy for a period of three (3) years subsequent to
the expiration of the Removed Policy. During the aforenoted period, the Insurer’s renewals of the Replacement Policy shall be at the Insurer’s approved rates and on substantially similar terms or on such forms and rates as approved by the
Office. No such Policy may be cancelled or nonrenewed by the Insurer during this period except for nonpayment of premium or in accordance with the provisions of the Consent Order attached as Exhibit C. 
 B. CITIZENS shall provide, or has provided, to the Insurer, by electronic data transfer, or by such other means as is acceptable to CITIZENS, relevant
information regarding the Tagged Policies available for assumption. The Insurer understands that CITIZENS cannot guarantee the reliability and accuracy of this data and the Insurer agrees that policies will not be cancelled upon discovery that this
information was not accurate, unless such inaccuracy amounts to a material misrepresentation or fraud on behalf of the insured. 
  

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 PLA Non-Bonus Assumption Agreement 
  
 C. The Insurer understands that CITIZENS makes no guarantee that a Tagged Policy will be available for removal on the
Assumption Date. 
 D. Thirty-six (36) months after the first Assumption Date, the Insurer shall provide to CITIZENS an Independent
Auditor’s report performed in accordance with the instructions provided in the Audit Scope attached hereto and incorporated herein by reference as Exhibit E. At a minimum the Audit shall contain all pertinent data to verify the satisfactory
completion of the Insurer’s performance pursuant to this agreement. Prior to commencing work, the Independent Auditor shall be approved by CITIZENS, which approval shall not be unreasonably withheld. All expenses of the Independent Auditor
shall be paid by the Insurer. At the beginning of the Audit CITIZENS shall provide the approved auditor the procedures to be followed in meeting the requirements of Exhibit E. 
 E. The Insurer agrees that no bonus, Incentive plan, or consideration beyond the assumed premium will be paid by CITIZENS for the Insurer’s removal
of Removed Policies. 
 F. By signing this Agreement, Insurer certifies that its assumption of policies complies with Section 627.3517,
Florida Statutes. It is the Insurer’s sole responsibility to contact all agents involved with the Tagged Policies in order to obtain their permission to include those particular policies in the Assumption. 
 5. Office Oversight. CITIZENS shall provide a fully executed copy of this Agreement to the Office. The Insurer shall respond
to any requests for information by the Office regarding the proposal or this Agreement. The Insurer and CITIZENS are, and shall remain, subject to all applicable laws of the State of Florida and the supervision, rules, regulations and orders of the
Office. 
 6. Right of Audit. CITIZENS or its representatives, upon reasonable advance written notice, shall be entitled to
audit, at its own cost and expense, the relevant books and records of the Insurer during normal business hours to confirm the Insurer’s compliance with the terms and conditions of this Agreement. 
 7. Indemnification. Insurer shall indemnify CITIZENS, its Board of Governors, officers, agents and employees (“CITIZENS
Indemnitess”) against any costs, expenses (including reasonable counsel fees and costs of litigation), claims, demands, actions, losses or liabilities that CITIZENS Indemnitees may suffer or that may be asserted or claimed against CITIZENS
Indemnitees, caused by or arising directly out of any breach of this Agreement by the Insurer or Insurer’s Assumption of Removed Policies. 
 8. Insurer’s Continuing Status. The Insurer, during the period of this Agreement, shall remain duly licensed and authorized to transact property and casualty
insurance business in the State of Florida and the lines of insurance applicable to Removed Policies and Replacement Policies. 
 9.
Breach. Default Cure, Termination and Other Remedies. 
 A. Events of Default. A default under this Agreement occurs in
the event of any material breach of an obligation, representation or undertaking of a party as set forth in this Agreement, including without limitation: 
 (i)    (a) Insurer fails to maintain its authority and licensing to conduct its business as provided in Section 8 of this Agreement; or 
  

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 PLA Non-Bonus Assumption Agreement 
  
 (b) Insurer becomes subject to an adverse finding or an order of supervision, rehabilitation, or liquidation pursuant to
Chapter 631, Florida Statutes; or 
 (c) The issuance of any other order of the Office or a court of competent jurisdiction that in any
material form or manner limits or constrains the ability of the Insurer to engage In the business of property and casualty insurance, which results in the Insurer canceling or nonrenewing Removed Policies or Replaced Policies, other than the initial
Consent Order issued by the Office in connection with this Agreement 
 (d) No notice or curative period is required for a material breach
occurring pursuant to this Section (i). 
 (ii) Insurer’s assumption of Tagged Policies, Replacement Policies, or Removed Policies at
unapproved rates within one year of the Assumption Date. 
 (iii) The Insurer’s cancellation or non-renewal of a Removed Policy for an
invalid reason. For purposes of this paragraph, an “invalid reason” shall be a cancellation of non-renewal not authorized by the terms of this Agreement or by the Consent Order attached as Exhibit C. 
 (iv) The insurer fails to materially comply with Section 627.3517, Florida Statutes. In addition to any other remedies provided in this Agreement,
if Section 627.3516 is violated. Insurer will be liable for any costs associated with CITIZENS re-assuming any Removed Policies, if Citizens in its sole discretion determines to do so. In addition, Insurer will be assessed a monetary penalty in
the amount of $1000.00 per Policy for every Policy assumed without the permission of the agent, if Insurer fails to cure under the provision of Paragraph 9.B. 
 B. Cure. In the event of a default that may be cured, the non-defaulting party shall give the defaulting party written notice of the material breach or default. Failure of the defaulting party to cure the
material breach or default within fifteen (15) days of the receipt of the written notice as herein provided shall constitute and be deemed a material breach and default of this Agreement unless the material breach or default is not capable of
being cured within such period of time, and the defaulting party has commenced good faith efforts to cure such material breach or default within fifteen (15) days, and thereafter continues in good faith to diligently pursue curing until the
material breach or default is cured to the reasonable satisfaction of the non-breaching party. 
 C. Termination and Other Remedies.
Should the Insurer materially breach or default in any obligation as set forth in this Agreement and not timely cure such material default and breach as set forth in this section, CITIZENS may in its sole discretion, take any or all of the follow
actions: 
 (i) Terminate this Agreement or declare this Agreement canceled or void. 
 (ii) Prohibit Insurer from further assumption of policies pursuant to this Agreement or any future agreement. 
  

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 PLA Non-Bonus Assumption Agreement 
  
 (iii) Notify the Office of the violation of the Agreement and request that the Office take appropriate administrative
action. 
 (iv) Forfeiture of up to the entire amount of any escrowed bonus instituted pursuant to Paragraph 4.E., which shall be set forth
in detail in any addendum negotiated pursuant to Paragraph 4.E. 
 (v) In addition to any rights and remedies set forth in this Agreement,
the non-defaulting party shall have all rights and remedies available at law and/or equity, including, but not being limited to, the right to specific performance, damages or injunctive relief. 
 D. Removed Policies. Notwithstanding any breach of this Agreement, the Insurer shall remain responsible for Removed Policies unless and
until a judicial determination is rendered relieving, altering or limiting Insurer’s responsibility. 
 10. Attorney’s
Fees. If either of the parties hereto shall bring a Court action alleging material breach of this Agreement or seeking to enforce, rescind, renounce, declare void or terminate this Agreement or any provisions thereof, the prevailing party
shall be entitled to recover all of its legal expenses, including reasonable attorney’s fees and costs (including attorney’s fees and costs for any appeals taken), and to have the same awarded as part of the judgment in the proceeding in
which such legal expenses and attorney’s fees and costs were incurred. 
 11. Benefits. This Agreement shall be binding
upon the parties, their heirs, legal representatives, successors and assigns. 
 12. Captions. The paragraph captions as to
contents of the particular paragraphs herein are inserted only for convenience and are in no way to be construed as part of this Agreement or as a limitation of the scope of the particular paragraph in which they are referred. 
 13. Construction of Agreement. Words of a gender used in this Agreement shall be held to include any other gender, and words in a singular
number shall be held to include the plural, when the sentence so requires. 
 14. Entire Agreement. This Agreement contains all
of the oral and/or previously written agreements, representations, and arrangements between the parties hereto concerning the Program, and all rights which the respective parties may have had under any prior written or oral agreements are hereby
canceled and terminated, and all parties agree that there are no representations or warranties other than those set forth herein. 
 15.
Florida Law and jurisdiction. It is acknowledged that this Agreement was executed in and shall be construed and governed in accordance with the laws of the State of Florida and the rules, orders and regulations of the Office in effect
at the time of the execution of this Agreement. In the event of any conflict between such laws, rules, orders and regulations and Subsection 627.351(6), the provisions of that Subsection govern, if any legal action is filed pursuant to this
agreement such action must be filed in a court of competent jurisdiction in Leon County Florida. 
 16. Assignment. The Insurer
may not assign or transfer this Agreement, or any benefit or right under this Agreement without Citizens’ prior written consent. Any change in control or ownership is deemed a transfer of this Agreement requiring Citizens’ written consent.

  

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 PLA Non-Bonus Assumption Agreement 
  
 17. Invalidation. In the event any provision of this Agreement is determined to be invalid by a court of
competent jurisdiction, the remaining provisions of this Agreement remain in full force and effect. 
 18. No Intermediary. The
Insurer represents and warrants that it has not, and CITIZENS represents and warrants that it has not, incurred an obligation to make payment of any fees to any intermediary with respect to the obligations afforded under this Agreement. 

19. Modification. No change or modification of this Agreement shall be valid unless the same shall be in writing and signed by all of
the parties hereto and not disapproved by the Office. 
 20. Notices. Any and all notices, designations, consents, offers,
acceptances, or any other communications provided for herein shall be given in writing, by hand delivery, by overnight mail, by registered or certified mail, or by facsimile transmission and shall be addressed as follows: 
 Notice to Insurer: 
 Frank McCahill

 President & CEO 
 Homeowners Choice Property and Casualty Insurance Company 
 145 NW Central Park Plaza Suite 110 
 Port St. Lucie, FL 34986 
 (772) 336-9091 
 Notice to CITIZENS: 
 Mr. Scott Wallace 
 President Executive Director 
 CITIZENS Property Insurance Corporation 
 101 North Monroe Street, Suite 1000 
 Tallahassee, Florida 32301 
 (850)513-3780 
 Notices sent by hand
delivery shall be deemed delivered on the date of hand delivery. Notices sent by overnight Insurer shall be deemed delivered on the next business day after being placed into the hands of the overnight Insurer. Notices sent by registered or certified
mail shall be deemed delivered on the third business day after being deposited into the post office. Notices sent by facsimile transmission shall be deemed to be delivered on the day when sent if sent prior to 4:30 p.m. (the time being determined by
the time zone of the recipient) otherwise they shall be deemed delivered on the next business day. 
 21. Parties Represented.
The parties acknowledge that each party and its counsel have reviewed and revised this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the
interpretation of this Agreement or any amendments or exhibits hereto. 
 22. Survival of Terms. Sections 3, 4, 5, 6, 7, 10,
15, 16,17, and 20 shall survive the termination of this Agreement. 
  

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 PLA Non-Bonus Assumption Agreement 
  
 IN WITNESS WHEREOF, the parties hereto have set their hands and seals as of the day and year first above set forth.

  

			
	CITIZENS PROPERTY INSURANCE CORPORATION
		
	BY:	 	 

		 	Mr. Scott Wallace
		 	President and Executive Director
	
	INSURER
		
	BY:	 	 

		 	Mr. Frank McCahill
		 	President & CEO

  

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 PLA Non-Bonus Assumption Agreement 
  
 Exhibits: 
 A.
Schedule of Policies 
 B. Ceding Commission Rate 
 C. Consent Order 
 D. Timeline and Requirements for Assumption 
 E. Audit Scope 
 F. Initial Notice 

 

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 PLA Non-Bonus Assumption Agreement 
  
 EXHIBIT B 
 Ceding Commission Rate 
 The contract period to remove policies from CITIZENS will be eighteen (18) months. Any single
assumption in a take-out contract period must remove a minimum of 2,500 policies or a Total Insured Value (coverages A, B, C & D combined) of five hundred (500) million dollars. High Risk Account (HRA) and Personal Lines Account (PLA)
take-outs are exclusive and may not be assumed simultaneously under a single eighteen (18) month take-out contract. 
 There are additional Incentives
for assuming Insurers that remove larger numbers of eligible policies or TIV from the Personal Lines Account or High Risk Account. CITIZENS agrees to reduce the ceding commission for all policies in a take-out if either the minimum number of
policies or TIV are assumed. No agreement may be modified mid-term to change to a different bonus program, unless specified in the assumption agreement. 
 Ceding Commission (PLA) 
  

							
	 Number of Policies
	  	 Minimum Eligible
 Total Insured Value (TIV)
	  	 Ceding Commission
	  	 
	Less than 60,000	  	N/A	  	16%	  
	60,000 to 74,999	  	$11 Billion	  	Reduced to 12%	  
	75,000 to 89,999	  	$14 Billion	  	Reduced to 9%	  
	90,000 and up	  	$17 Billion	  	Reduced to 6%	  

 Ceding Commission (HRA) 
  

							
	 Number of Policies
	  	 Minimum Eligible
 Total Insured Value (TIV)
	  	 Ceding Commission
	  	 
	Less than 35,000	  	N/A	  	16%	  
	35,000 to 49,999	  	$10 Billion	  	Reduced to 12%	  
	50,000 to 79,999	  	$14 Billion	  	Reduced to 9%	  
	80,000 and up	  	$22 Billion	  	Reduced to 6%	  

  

 13 

 PLA Non-Bonus Assumption Agreement 
  
 Ceding Commission (Mobile Home) 
  

							
	 Number of Policies
	  	 Minimum Eligible
 Total Insured Value (TIV)
	  	 Ceding Commission
	  	 
	Less than 15,000	  	N/A	  	16%	  
	15,000 to 19,999	  	N/A	  	Reduced to 12%	  
	20,000 to 29,999	  	N/A	  	Reduced to 9%	  
	30,000 and up	  	N/A	  	Reduced to 6%	  

  

 14 

 PLA Non-Bonus Assumption Agreement 
  
 EXHIBIT D 
 Timeline and Requirements for Assumption 
  

	•	 	 At any point in time, an Insurer may request, for purposes of depopulation and subject to an appropriate confidentiality agreement, a data file of policies from
CITIZENS. All policies not currently pending cancellation, not set for non-renewal or tagged for another insurer as described below, will be included in the data file. 

  

	•	 	 Companies may not be allowed to Depopulate polices in consecutive assumptions. This is dependent upon the number of participants. This determination is based on
resources, and solely at the discretion of the Depopulation Manager. 

 At least 45 Days Before Initial Assumption 

  

	•	 	 The Insurer must provide a Certificate of Authority from the Office, and an Order or letter from the Office approving the assumption. 

 

	•	 	 The Assuming Carrier must return an executed Requirements and Deadline Letter. 

  

	•	 	 The Insurer must return an executed Requirements and Deadline Letter  

 At Least 40 Days Before Initial Assumption 
  

	•	 	 The Assuming Carrier’s policy selection must be submitted to Citizens. By submitting this policy selection file the assuming carrier is certifying that all
associated have either been appointed by the company or agreed to have their policies assumed by the company under the provisions of “Consumer Choice.” 

  

	•	 	 Citizens must receive the Assuming Carrier’s information (company letterhead with logo, signature, etc.) to begin formatting of assumption notices.

 At Least 35 Days Before Initial Assumption 
  

	•	 	 The Assuming Carrier must mail notice 35 days before the assumption date giving the consumer the option to choose not to be assumed. The Notice must be approved by
the O.I.R. and Citizens. It must be sent to each consumer the carrier intends to assume. The Insurer must return an executed Assumption Agreement to CITIZENS. 

  

	 	•	 	 It is the Assuming Carrier’s responsibility to collect the responses from the above notice, and retain these for documentation. All consumers who indicate they
do not want to be assumed need to be entered into an Access data base with their associated Citizens policy number. 

 At Least 6
Days Before Initial Assumption 
  

	 	•	 	 The Assuming Carrier must provide a data file (Access format) containing each consumer and associated policy number that has chosen to not be assumed. Citizens
eliminates the policies of consumers who do not wish to have their policies assumed from the company’s policy selection. 

  

 15 

 PLA Non-Bonus Assumption Agreement 
  

	 	•	 	 These deadlines may change depending upon the number of participating companies. The Depopulation manager will notify if modification is necessary.

 EXHIBIT E 
 Audit Scope 
 This Audit Scope provides the directions for the audit which will occur 36 months after the last assumption date. By signing
the overall assumption agreement the Insurer has agreed to abide by the terms of this document. 
 1. Approximately sixty (60) days prior to the end of
the 36-month period following the date that the Insurer last removed policies under the Non-Bonus Takeout Program, the Insurer will provide to CITIZENS a computer file (hereinafter referred to as the “Policy Computer File”) in ACCESS
format sorted by CITIZENS policy number, which contains the following information on each policy: 
  

	 	a.	Complete CITIZENS policy number; 

  

	 	b.	Year and month in which policy was removed from CITIZENS; 

  

	 	c.	Insurer’s policy number; 

  

	 	d.	Policy effective date of the Insurer’s initial policy; 

  

	 	e.	Policy expiration date of the Insurer’s Initial policy; 

  

	 	f.	County of property location; 

  

	 	g.	Property address; and 

  

	 	h.	Indicate if the policy is in-force, or canceled. 

  

	 	i.	For all cancelled policies, the effective date of the cancellation. 

 2.
CITIZENS will select a random sample of 400 policies, hereinafter referred to as the “Sample Policies”, from the Policy Computer File and provide a list of the selected policies to the Insurer. 
 3. The Insurer will select an Independent Auditor subject to the concurrence of Citizens, which concurrence shall not be unreasonably withheld. The Insurer will provide
its Independent Auditor with the list of the Sample Policies. The Independent Auditor, at the expense of the Insurer, will conduct agreed-upon procedures pursuant to this Agreement, and will perform the following: 
  

	 	a.	For in force Sample Policies: 

  

	 	1.	Verify that there were offers of coverage and policyholder payments; and 

  

	 	2.	Verify that the effective date, county and property address are correct; and 

  

	 	3.	Verify that the policy was in-force with no lapse in coverage through the end of the initial 36-month period. 

  

	 	4.	Identify and explain any exceptions. 

  

	 	b.	For Sample Policies no longer in force: 

  

	 	1.	Verify that there were offers of coverage and policyholder payments; and 

  

	 	2.	Verify that the effective date, county, and property address are correct; and 

  

	 	3.	Identify and explain any exceptions; and 

  

	 	4.	 For Sample Policies no longer in force due to voluntary cancellation by the insured 

  

 16 

 PLA Non-Bonus Assumption Agreement 
  

	 	 
(including those cancelled for non-payment of premium), review the policy file for documentation or other data entry, e.g., diary comments, letters from
insured, etc., regarding the cancellation and document the reason(s) for cancellation and the effective date of the cancellation. 

  

	 	5.	For Sample Policies no longer in force due to cancellation by the Insurer for fraud, i.e., material misrepresentation, review the policy file for supporting documentation for the
cancellation and document the reason(s) for cancellation and the effective date of the cancellation. 

  

	 	6.	Identify any Sample Policies that were cancelled or non-renewed by the Insurer to reduce the Insurer’s hurricane exposure or for any other reason other than in 4 and 5, above,
and provide the effective date of the cancellation and reason for cancellation. 

 4. The Independent Auditor will provide an agreed-upon
procedures report (hereinafter referred to as “Report”) to the Insurer and CITIZENS detailing its findings on each policy reviewed. The Report will list CITIZENS and Its auditor, Ernst & Young, as users. 
 5. CITIZENS will review and verify the Report of the Independent Auditor. Within 10 working days of receipt of the Report, CITIZENS will verify whether the Report has
been prepared in compliance with the agreed-upon procedures set forth in this Agreement. If the Report is not verified, CITIZENS will advise the Independent Auditor on how to correct any deficiencies noted during the verification process and may
require that additional policies be sampled in order to validate the findings in the Report 
 6. After verification of the Independent Auditor’s Report
by Citizens, either the Insurer or CITIZENS may elect, at its own expense, to expand the review sample to enhance the accuracy of the data to be used in extrapolating findings to the entire population. This election may only be made once by each
party to this Agreement. The party making such election must notify the other party of its intent within 14 days after receipt of notice of verification of the Independent Auditor’s Report prepared pursuant to Paragraphs 4 and 5, above.

 7. The Report shall be referred to the Office. 
  

 17

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