Exhibit 10.35
ENDORSEMENT NO. 1
to the
PROPERTY CATASTROPHE OVERLYING EXCESS OF LOSS
REINSURANCE CONTRACT
between
STATE AUTOMOBILE MUTUAL INSURANCE COMPANY
MILBANK INSURANCE COMPANY
STATE AUTO NATIONAL INSURANCE COMPANY
STATE AUTO INSURANCE COMPANY OF WISCONSIN
FARMERS CASUALTY INSURANCE COMPANY
STATE AUTO INSURANCE COMPANY OF OHIO
MERIDIAN SECURITY INSURANCE COMPANY
MERIDIAN CITIZENS MUTUAL INSURANCE COMPANY
STATE AUTO FLORIDA INSURANCE COMPANY
BEACON NATIONAL INSURANCE COMPANY
FIRST PREFERRED INSURANCE COMPANY
PETROLIA INSURANCE COMPANY
BEACON LLOYDS INSURANCE COMPANY
(the “Company”)
and
STATE AUTO PROPERTY AND CASUALTY INSURANCE COMPANY
(the Subscribing “Reinsurer”)
IT IS HEREBY AGREEDthat effective January 1, 2008, the Contract shall be amended as follows:
1. | The following are added as reinsured companies, as parties to the Contract and shall hereinafter be included in the definition of “Company”: |
a. | PATRONS MUTUAL INSURANCE COMPANY OF CONNECTICUT |
b. | LITCHFIELD MUTUAL FIRE INSURANCE COMPANY |
c. | PATRONS FIRE INSURANCE COMPANY OF RHODE ISLAND |
d. | PROVISION STATE INSURANCE COMPANY. |
2. | Exhibit A is revised and attached hereto to reflect premiums for the newly reinsured companies. |
3. | ARTICLE X – NOTICE OF LOSS AND LOSS SETTLEMENT is deleted in its entirety and the following substituted therefor: |
“The Company shall adjust, settle, or compromise all claims and losses hereunder.
All loss settlements by the Company which comply with the terms hereof shall be unconditionally binding upon the Reinsurer.
The Company shall advise the Reinsurer promptly of all claims and any subsequent developments pertaining thereto, which may, in the Company’s opinion, develop into losses involving Reinsurance hereunder. Inadvertent omission or oversight in dispatching such advices shall in no way affect the liability of the Reinsurer under this Contract provided the Company informs the Reinsurer of such omission or oversight promptly upon its discovery.
The Company shall submit a proof of loss within 30 days after the end of the calendar quarter in which it paid a covered loss. The Reinsurer shall tender all loss payments within 45 days after receipt of satisfactory proof of loss.”
4. | ARTICLE XI - PREMIUM is deleted in its entirety and the following substituted therefor: |
“The premium to be paid to the Reinsurer, as shown in Exhibit A, is payable in equal quarterly installments within 45 days after the end of each such calendar quarter. Each company’s premium will be proportional to its share of subject premium.”
5. | Notwithstanding the effective date referenced above, the following parties are deleted from the definition of “Company” effective December 18, 2007 upon their dissolution: |
a. | FIRST PREFERRED INSURANCE COMPANY |
b. | PETROLIA INSURANCE COMPANY. |
Except as amended herein, the provisions of this Contract shall remain otherwise unchanged.
IN WITNESS WHEREOF, the parties hereto by their authorized representative have executed this Endorsement No. 1 as of the date first written above:
STATE AUTO PROPERTY AND CASUALTY INSURANCE COMPANY | ||||
By |
| |||
Title | Vice President, CFO | |||
STATE AUTOMOBILE MUTUAL INSURANCE COMPANY
MILBANK INSURANCE COMPANY
STATE AUTO NATIONAL INSURANCE COMPANY
STATE AUTO INSURANCE COMPANY OF WISCONSIN
FARMERS CASUALTY INSURANCE COMPANY
STATE AUTO INSURANCE COMPANY OF OHIO
MERIDIAN SECURITY INSURANCE COMPANY
MERIDIAN CITIZENS MUTUAL INSURANCE COMPANY
STATE AUTO FLORIDA INSURANCE COMPANY
BEACON NATIONAL INSURANCE COMPANY
BEACON LLOYDS INSURANCE COMPANY
PATRONS MUTUAL INSURANCE COMPANY OF CONNECTICUT
LITCHFIELD MUTUAL FIRE INSURANCE COMPANY
PATRONS FIRE INSURANCE COMPANY OF RHODE ISLAND
PROVISION STATE INSURANCE COMPANY
By |
| |
Title | Treasurer |
EXHIBIT A - Revised January 1, 2008
State Automobile Mutual Insurance Company
Milbank Insurance Company
State Auto National Insurance Company
State Auto Insurance Company of Wisconsin
Farmers Casualty Insurance Company
State Auto Insurance Company of Ohio
Meridian Security Insurance Company
Meridian Citizens Mutual Insurance Company
State Auto Florida Insurance Company
Beacon National Insurance Company
First Preferred Insurance Company
Petrolia Insurance Company
Beacon Lloyds Insurance Company
Patrons Mutual Insurance Company of Connecticut
Litchfield Mutual Fire Insurance Company
Patrons Fire Insurance Company of Rhode Island
Provision State Insurance Company
PROPERTY CATASTROPHE OVERLYING EXCESS OF LOSS REINSURANCE CONTRACT
FOR THE PERIOD
12:01 A.M., EASTERN TIME, JULY 1, 2007
THROUGH
12:01 A.M., EASTERN TIME, JULY 1, 2008
PREMIUM CALCULATION
Subject Premium Basis - July 1, 2006 through March 31, 2007
Annual Statement Line | Mutual | Milbank | National | SAIC of Wisconsin | Farmers | SAIC of Ohio | Meridian Security | Meridian Citizens Mutual | State Auto Florida | Beacon* | Sub-Total | ||||||||||||||||||||||||||
1.0 | @ | 100% | 20,998,619 | 544,199 | 0 | 221,970 | 263,665 | 1,230,786 | 3,047,547 | 508,773 | 465,995 | 1,231,599 | 28,513,153 | ||||||||||||||||||||||||
2.1 | @ | 100% | 13,690,523 | 402,213 | 0 | 126,394 | 316,637 | 745,121 | 1,490,907 | 11,116 | 726,082 | 1,728,758 | 19,237,751 | ||||||||||||||||||||||||
3.0 | @ | 65% | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 9,386,287 | 0 | 937,823 | 10,324,110 | ||||||||||||||||||||||||
4.0 | @ | 65% | 32,508,920 | 9,515,041 | 0 | 4,081,306 | 1,217,305 | 1,503,788 | 6,110,275 | 0 | 2,112,436 | 7,965,844 | 65,014,915 | ||||||||||||||||||||||||
5.0 | @ | 50% | 9,293,684 | 854,886 | 0 | 0 | 534,189 | 0 | 1,013,931 | 0 | 1,132,730 | 1,728,758 | 14,558,178 | ||||||||||||||||||||||||
8.0 | @ | 90% | 170,554 | 220 | 0 | 469 | 1,304 | 151,158 | 24,297 | 0 | 55,072 | 0 | 403,074 | ||||||||||||||||||||||||
9.0 | @ | 100% | 9,137,717 | 982,159 | 0 | 403,655 | 92,445 | 153,372 | 743,400 | 0 | 331,882 | 361,570 | 12,206,200 | ||||||||||||||||||||||||
12.0 | @ | 100% | 1,690,139 | 10,759 | 0 | 1,802 | 10,554 | 37,270 | 460,012 | 154,826 | 171 | 0 | 2,365,533 | ||||||||||||||||||||||||
21.1 | @ | 50% | 20,758,665 | 4,986,626 | 3,954,261 | 3,315,035 | 1,470,715 | 862,218 | 3,461,294 | 0 | 0 | 2,643,982 | 41,452,796 | ||||||||||||||||||||||||
21.2 | @ | 50% | 4,741,875 | 186,043 | 0 | 0 | 47,237 | 0 | 257,323 | 305,943 | 50 | 485,860 | 6,024,331 | ||||||||||||||||||||||||
| 112,990,696 | 17,482,146 | 3,954,261 | 8,150,631 | 3,954,051 | 4,683,713 | 16,608,986 | 10,366,945 | 4,824,418 | 17,084,194 | 200,100,041 | |||||||||||||||||||||||||||
Percent of Total | 56.5 | % | 8.7 | % | 2.0 | % | 4.1 | % | 2.0 | % | 2.3 | % | 8.3 | % | 5.2 | % | 2.4 | % | 8.5 | % | 100.0 | % | |||||||||||||||
Annual Premium | 2,011,400 | 309,720 | 71,200 | 145,960 | 71,200 | 81,880 | 295,480 | 185,120 | 85,440 | 302,600 | 3,560,000 | ||||||||||||||||||||||||||
Quarterly Installment | 502,850 | 77,430 | 17,800 | 36,490 | 17,800 | 20,470 | 73,870 | 46,280 | 21,360 | 75,650 | 890,000 | ||||||||||||||||||||||||||
| Sub-Total | |||||||||||||||||||||||||||||||||||||
| Annual Premium / Subject Premium: | 1.7791% | ||||||||||||||||||||||||||||||||||||
Annual Statement Line | Patrons Mutual | Litchfield | Patrons Fire | Provision State | ||||||||
1.0 @ 100% | 1,886,945 | 101,692 | 0 | 0 | ||||||||
2.1 @ 100% | 1,276,795 | 11,299 | 0 | 0 | ||||||||
3.0 @ 65% | 666,645 | 892,626 | 0 | 0 | ||||||||
4.0 @ 65% | 10,203,060 | 11,299 | 0 | 0 | ||||||||
5.0 @ 50% | 4,225,852 | 158,187 | 0 | 0 | ||||||||
8.0 @ 90% | 0 | 0 | 0 | 0 | ||||||||
9.0 @ 100% | 463,262 | 67,794 | 0 | 0 | ||||||||
12.0 @ 100% | 0 | 0 | 0 | 0 | ||||||||
21.1 @ 50% | 1,028,215 | 0 | 0 | 0 | ||||||||
21.2 @ 50% | 0 | 0 | 0 | 0 | ||||||||
| 19,750,774 | 1,242,897 | 0 | 0 | |||||||||
Semi-Annual Premium: | 175,694 | 11,056 | 0 | 0 | ||||||||
Quarterly Installment: | 87,847 | 5,528 | 0 | 0 | ||||||||
| Patrons Mutual | Litchfield | Patrons Fire | Provision State | |||||||||
Rate as % of Subject Premium: | 1.7791 | % | 1.7791 | % | 1.7791 | % | 1.7791 | % | ||||
* | “Beacon” includes Beacon National, First Preferred, Petrolia and Beacon Lloyds Insurance Companies. |