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                                                                   EXHIBIT 10.27

                                 LOAN AGREEMENT

This Loan Agreement ("Agreement") is effective this 1st day of September, 2004;
supercedes prior agreements and is entered into, by and between, Ameritrust
Insurance Corporation, a Florida corporation whose principal place of business
is 7250 S. Beneva Road, Sarasota, Florida 34238 ("Ameritrust"); Savers Property
and Casualty Insurance Company, a Missouri corporation whose principal place of
business is 11880 College Blvd., Suite 500, Overland Park, Kansas 66210
("Savers"); Star Insurance Company, a Michigan corporation whose principal place
of business is 26600 Telegraph Road, Southfield, Michigan 48034 ("Star");
Williamsburg National Insurance Company, a California corporation whose
principal place of business is 12641 E. 166th Street, Cerritos, California 90703
("Williamsburg"), Meadowbrook Insurance Group, Inc., a Michigan corporation
whose principal place of business is 26600 Telegraph Road, Southfield, Michigan
48034 ("MIGI") (collectively the "Parties" and individually the "Party"), and
Meadowbrook, Inc., a Michigan corporation whose principal place of business is
26600 Telegraph Road, Southfield, Michigan 48034 ("Meadowbrook").

For value received, the Parties agree as follows:

1.       Meadowbrook is authorized to advance monies (the "Advances"), in
         Meadowbrook's control, from any of the Parties (individually referred
         to as the "Creditor") to any of the other Parties (individually
         referred to as the "Debtor").

2.       Meadowbrook is authorized to direct any of the Parties, as a Debtor,
         to receive funds (the "Advances") from another of the Parties acting as
         the Creditor.

3.       The Parties acknowledge that from time to time one Party may receive
         payment from or make payments to third parties on behalf of itself and
         one or more of the other Parties. Meadowbrook is authorized to direct
         any of the Parties, as a Debtor, to receive funds, (the "Payments") for
         the benefit of another Party as a Creditor, from a third party; or to
         direct any of the Parties acting as a Creditor, to make payments to
         third parties, on behalf of another Party acting as a Debtor.

4.       Meadowbrook, in its sole discretion, shall determine, from time to
         time: (a) the amount of Advances or Payments to be made (however, in
         instances involving third party funds as described in Paragraph 3, the
         Payments or Advances shall not exceed the amounts which would have been
         paid to or received from the third party had the transaction occurred
         directly between the third party and the individual Parties); (b) the
         Debtor or third party to receive the funds; and (c) the Creditor that
         will make Advances to another Party or receive Payments for the benefit
         of another Party from third parties.

5.       The amount of Advances and Payments made, at any one time, by any
         Creditor, plus the amount of Advances and Payments previously made and
         not yet repaid to that same Creditor; or the amount of Advances and
         Payments to be received, at any one time, by any Debtor plus the
         Advances previously received and Payments made on behalf of that same
         Debtor and not yet repaid, shall not exceed the lesser of three percent
         (3%) of either the Creditor's or Debtor's admitted assets or
         twenty-five percent (25%) of either the Creditor's or Debtor's policy
         holder surplus as of the preceding December 31st. This limitation is
         based on the statutes and regulations as promulgated by the states in
         which each of the

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         Parties are domiciled. In the event that those statutes or regulations
         are modified or changed, then these limitations will be so modified or
         changed to comport with the changes to the statutes or regulations.

6.       Meadowbrook shall maintain a written record of all Advances and
         Payments made pursuant to this Agreement.

7.       Meadowbrook shall determine, in its sole discretion, the date upon
         which any Advances or Payments shall be repaid to the Creditor by the
         Debtor. However, Advances or Payments, which are a result of third
         party transactions, as defined in Paragraph 3, shall be settled within
         30 days of receipt from or payment to the third party.

8.       The Debtors agree to pay interest on the Advances and Payments made by
         the Creditors. The rate of interest shall be a reasonable rate and be
         determined by Meadowbrook. However, interest shall accrue and be
         charged by the Creditor, only on and after the last day of the month
         following the month in which the funds were advanced.

9.       A waiver of any breach of any duty or obligation by any of the Parties
         to this Agreement shall not be considered a waiver of any subsequent
         breach of that same duty or obligation or a waiver of the subsequent
         breach of any other duty or obligation.

10.      This Agreement and all matters collateral thereto shall be interpreted
         and construed in accordance with the laws of the State of Michigan
         without regard to any conflict of law provisions contained therein.

11.      This Agreement may not be assigned by any of the Parties without the
         prior written consent of all the other Parties to this Agreement. This
         Agreement shall be binding upon and inure to the benefit of the Parties
         hereto and their respective heirs, successors and assigns.

12.      The term of this agreement shall be for a period of one (1) year and
         shall automatically renew for successive one (1) year periods unless
         any of the Parties notifies the other Parties that it intends not to
         renew the Agreement. Such notice shall be given no less than sixty (60)
         days prior to the termination date of the then existing Agreement.

13.      Any notice required to be given under this Agreement shall be in
         writing and be delivered by U.S. Mail, postage prepaid, or by facsimile
         to the addresses first noted above, or such other address as may be
         designated by the Parties from time to time, with a copy of each such
         notice to all the Parties to this Agreement

14.      This Agreement contains the entire understanding of the Parties hereto
         relating to the subject matter contained herein and can be changed or
         modified only by a writing signed by all the Parties to this Agreement.

15.      The undersigned hereby warrant that they are authorized to enter into
         and execute this Agreement.

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Agreed to as of the date noted above:

AMERITRUST INSURANCE CORPORATION

/s/ Robert S. Cubbin
--------------------------------------------------------------
By:  Robert S. Cubbin
Its: President and CEO

SAVERS PROPERTY AND CASUALTY INSURANCE COMPANY

/s/ Gregory L. Wilde
--------------------------------------------------------------
By:  Gregory L. Wilde
Its: President

STAR INSURANCE COMPANY

/s/ Gregory L. Wilde
--------------------------------------------------------------
By:  Gregory L. Wilde
Its: President

WILLIAMSBURG NATIONAL INSURANCE COMPANY

/s/ Gregory L. Wilde
--------------------------------------------------------------
By:  Gregory L. Wilde
Its: President

MEADOWBROOK, INC.

/s/ Robert S. Cubbin
--------------------------------------------------------------
By:  Robert S. Cubbin
Its: President and CEO

MEADOWBROOK INSURANCE GROUP, INC.

/s/ Robert S. Cubbin
--------------------------------------------------------------
By:  Robert S. Cubbin
Its: President and CEO

                                       3<PAGE>
                                                                   EXHIBIT 10.31

                       NONQUALIFIED STOCK OPTION AGREEMENT
                                    UNDER THE
              MEADOWBROOK INSURANCE GROUP, INC., STOCK OPTION PLAN

         THIS NONQUALIFIED STOCK OPTION AGREEMENT (the "Agreement") is made as
of this 21st day of February, 2003, between Meadowbrook Insurance Group, Inc., a
Michigan corporation (the "Company"), and (the "Optionee").

         WHEREAS, the Company wishes to further align the interests of the
Optionee with those of shareholders;

         WHEREAS, on February 21, 2003 (the "Grant Date"), the Committee for the
Meadowbrook Insurance Group, Inc. Stock Option Plan (the "Committee") granted
nonqualified stock options to certain employees or directors of the Company,
including the Optionee; and

         WHEREAS, the parties desire to document the terms of stock option
grants;

         NOW THEREFORE, the parties agree as follows:

         1.     GRANT OF OPTIONS. The Company has granted nonqualified stock
options to purchase _____ shares of Company Stock to the Optionee (the
"Options"). Once vested, the Optionee may purchase shares subject to the Stock
Option at a price of $_____per share of the Company's Stock (the "Option
Price").

         2.     VESTING OF OPTIONS. Options are not exercisable until they vest.
Except as otherwise provided herein, 20% of the Options shall be exercisable as
of the Grant Date and an additional 20% of the Options shall become exercisable
on the next four (4) successive anniversaries of the Grant Date. Upon the
effective date of a Hostile Change in Control of the Company, all Options shall
become fully and immediately exercisable.

         3.     EXPIRATION OF OPTIONS. Unless otherwise determined by the
Committee, to the extent not previously exercised, the Options will expire on
the earlier of, (a) the fifth anniversary of the Grant Date; (b) thirty days
after the date that the Optionee ceases to be an Eligible Person for any reason
other than Cause, death or Disability; (c) immediately upon the termination of
Optionee's service as an employee or director for Cause; or (d) after the date
the Optionee ceases to be an Eligible Person by reason of such person's death,
Disability or Retirement. THE OPTIONEE IS RESPONSIBLE FOR UNDERSTANDING THE
TERMINATION PROVISIONS OF THE PLAN AND THIS AGREEMENT AND TO KEEP TRACK OF THE
TERMINATION DATES FOR ANY OPTIONS GRANTED TO THE OPTIONEE UNDER THE PLAN. THE
COMPANY SHALL HAVE NO RESPONSIBILITY TO NOTIFY OPTIONEES OF THE DATE ON WHICH
OPTIONS WILL EXPIRE AND DOES NOT ANTICIPATE GIVING SUCH NOTICE TO ANY OPTIONEE
EITHER VERBALLY OR IN WRITING.

         4.     OPTIONEE RIGHTS. No rights or privileges of a shareholder of the
Company are conferred by reason of the granting of the Options. The Optionee
will not become a shareholder of the Company with respect to the Option Stock
unless and until the Options have been properly exercised and the Option Price
fully paid for the number of the Options exercised.

         5.     TRANSFERABILITY. The Options are not transferable, except by the
laws of descent and distribution, however, the Committee has the discretion to
allow for other Transfers of Options, but only to the extent provided in the
Plan and only when such Transfer would be considered a completed gift for tax

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purposes. If an Option is transferred, it will continue to be subject to the
terms and conditions of this Agreement, together with the Plan, and may not be
transferred again. If the Options are transferable during the Optionee's
lifetime, the Optionee will remain responsible for all applicable withholding
taxes upon the exercise of any transferred Options and will, prior to
transferring any Options, notify the Company of the anticipated Transfer. The
Company shall not be required to provide to the transferee any notice of
termination of any of the Options. If the Optionee Transfers an Option and dies
before a transferred Option has been exercised, the Option will automatically
terminate upon the earlier of one year from the date of the Optionee's death or
the expiration of the Option pursuant to this Agreement.

         6.     TERMS OF OPTIONS. This Agreement, and the Options issued to the
Optionee, are subject to all of the terms and conditions set forth herein and in
the Plan, as may be amended from time to time, a copy of which has been provided
to Optionee. To the extent that any conflict may exist between any term or
provision of this Agreement and any term or provision of the Plan, the Plan
shall govern. Capitalized terms referenced, but not defined herein, will have
the meaning attributed to them by the Plan. THE OPTIONEE ACKNOWLEDGES THAT HE OR
SHE HAS READ THE PLAN AND AGREES TO BE BOUND BY ITS TERMS. Pursuant to the Plan,
the Committee has authorized the Option Price and any applicable tax withholding
liability associated with exercise of the Options to be payable in cash, or by
netting or withholding Option Stock granted pursuant to the Options being
exercised, subject to the Optionee's attestation that the Optionee has, for at
least 6 months, owned Stock with a Fair Market Value equal to the amount of the
exercise price due to the Company.

         7.     MISCELLANEOUS. This Agreement, together with the Plan, sets
forth the complete agreement of the parties concerning the subject matter
hereof, superseding all prior agreements, negotiations and understandings.
Nothing contained in this Agreement will confer upon the Optionee any right with
respect to the continuation of his or her status as an employee, director or an
Eligible Person. This Agreement shall be binding upon and inure to the benefit
of the Company and the Optionee, and their respective heirs, personal legal
representatives and successors. No change or modification of this Agreement
shall be valid unless the same is in writing and signed by the parties hereto;
provided, however, that the Optionee hereby covenants and agrees to execute any
amendment to this Agreement which shall be required or desirable (in the opinion
of the Company or its counsel) in order to comply with the laws governing this
Agreement. This Agreement will be governed by the substantive law of the State
of Michigan and may be executed in counterparts.

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first set forth above.

ATTEST:                             MEADOWBROOK INSURANCE GROUP, INC.

                                    --------------------------------------------
                                    By:      Robert S. Cubbin
                                       -----------------------------------------
                                    Its:     President & CEO
                                        ----------------------------------------

                                    Optionee:
                                             -----------------------------------

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