Exhibit 10.18
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Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
(hereinafter collectively referred to as the "Company")
Article I - Classes of Business Reinsured
By this Contract the Reinsurer agrees to reinsure the excess liability which may
accrue to the Company under its policies, contracts and binders of insurance or
reinsurance (hereinafter called "policies") in force at the effective date
hereof or issued or renewed on or after that date, and classified by the Company
as Homeowners (Section I), Fire, Allied Lines, Commercial Multiple Peril
(Section I), Automobile Physical Damage, Earthquake and Inland Marine, subject
to the terms, conditions and limitations set forth herein and in Schedule A
attached to and forming part of this Contract.
Article II - Term
A. This Contract shall become effective on April 1, 1995, with respect to losses
arising out of loss occurrences commencing on or after that date, and shall
remain in force until March 31, 1996, both days inclusive. However, if the
Reinsurer sustains no loss hereunder from loss occurrences commencing on or
prior to December 31, 1995, this Contract shall, upon notice from the Company
prior to December 31, 1995, expire on December 31, 1995.
B. 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 expiration of this Contract, provided
that no part of such loss occurrence is claimed against any renewal or
replacement of this Contract.
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Article III - Territory
This Contract shall apply to the territorial limits set forth in the Company's
policies reinsured hereunder.
Article IV - Exclusions
This Contract does not apply to and specifically excludes the following:
1. All lines of business not included in Article I.
2. All excess of loss reinsurance assumed by the Company.
3. Reinsurance assumed by the Company under obligatory reinsurance
agreements, except agency reinsurance where the policies involved are to
be reunderwritten in accordance with the underwriting standards of the
Company and reissued as Company policies at the next anniversary or
expiration date.
4. Financial guarantee and insolvency.
5. All Accident and Health, Fidelity and Surety, Boiler and Machinery, Ocean
Marine, Workers' Compensation and Credit business when written as such.
6. Flood and/or earthquake when written as such.
7. Mortgage Impairment insurances and similar kinds of insurances, however
styled.
8. Nuclear risks as defined in the "Nuclear Incident Exclusion Clause -
Physical Damage - Reinsurance" attached to and forming part of this
Contract.
9. Risks excluded under the provisions of the "Total Insured Value Exclusion
Clause" attached to and forming part of this Contract.
10. 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.
11. 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,
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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.
12. Liability as a member, subscriber or reinsurer of any Pool, Syndicate or
Association; and any combination of insurers or reinsurers formed for the
purpose of covering specific perils, specific classes of business or for
the purpose of insuring risks located in specific geographic areas; but
this exclusion shall not apply to FAIR Plans or to Coastal Pools, Beach
Plans or similar plans, however styled. It is understood and agreed,
however, that this reinsurance does not include any increase in liability
to the Company resulting from (a) the inability of any other participant
in a FAIR Plan, Coastal Pool, Beach Plan or similar plan to meet its
liability, or (b) any claim against such a FAIR Plan, Coastal Pool, Beach
Plan or similar plan, or any participant therein, including the Company,
whether by way of subrogation or otherwise, brought by or on behalf of
any insolvency fund.
Article V - Retention and Limit
A. As respects each excess layer of reinsurance coverage provided by this
Contract, the Company shall retain and be liable for the first amount of
ultimate net loss, shown as "Company's retention" for that excess layer in
Schedule A attached hereto, arising out of each loss occurrence. The
Reinsurer shall then be liable, as respects each excess layer, for the amount
by which such ultimate net loss exceeds the Company's applicable retention,
but the liability of the Reinsurer under each excess layer shall not exceed
the amount, shown as "Reinsurer's Per Occurrence Limit" for that excess layer
in Schedule A attached hereto, as respects any one loss occurrence.
B. The Company shall retain, in addition to its initial retention on each loss
occurrence, 5.0% of the excess ultimate net loss to which the excess layer
applies.
C. The Company shall be permitted to carry excess per risk reinsurance,
recoveries under which shall inure to the benefit of this Contract.
Article VI - Reinstatement
A. In the event all or any portion of the reinsurance coverage provided by this
Contract 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 equal to
the product of the following:
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1. The percentage of the occurrence limit for the excess layer reinstated
(based on the loss paid by the Reinsurer under that excess layer); times
2. The earned reinsurance premium for the excess layer reinstated for the
term of this Contract (exclusive of reinstatement premium).
B. Whenever the Company requests payment by the Reinsurer of any loss under any
excess layer hereunder, the Company shall submit a statement to the Reinsurer
of reinstatement premium due the Reinsurer for that excess layer. If the
earned reinsurance premium for any excess layer 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 for that excess layer shall be based
on the annual deposit premium for that excess layer and shall be readjusted
when the earned reinsurance premium for that excess layer for the term of
this Contract has been finally determined. Any reinstatement premium shown
to be due the Reinsurer for any excess layer as reflected by any such
statement (less prior payments, if any, for that excess layer) shall be
payable by the Company concurrently with payment by the Reinsurer of the
requested loss for that excess layer. Any return reinstatement premium shown
to be due the Company shall be remitted by the Reinsurer within 60 days after
receipt and verification of the Company's statement.
C. Notwithstanding anything stated herein, the liability of the Reinsurer
provided by this Contract shall not exceed either of the following:
1. The amount, shown as "Reinsurer's Annual Limit" for that excess layer in
Schedule A attached hereto, as respects loss or losses arising out of any
one loss occurrence; or
2. The amount, shown as "Reinsurer's Annual Limit" for that excess layer in
Schedule A attached hereto, in all during the term of this Contract.
Article VII - Loss Occurrence (BRMA 27A)
A. The term "loss occurrence" 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
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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.
3. As regards earthquake (the epicentre of which need not necessarily be
within the territorial confines referred to in paragraph A of this
Article) 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 frozen
pipes and tanks) may be included in the Company's "loss occurrence."
B. Except for those "loss occurrences" referred to in subparagraphs 1 and 2 of
paragraph A 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.
C. However, as respects those "loss occurrences" referred to in subparagraphs 1
and 2 of paragraph A 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 that 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. No individual losses occasioned by an event that would be covered by 72 hours
clauses may be included in any "loss occurrence" claimed under the 168 hours
provision.
Article VIII - Definitions
A. "Ultimate net loss" as used herein is defined as the sum or sums (including
interest on judgments, extra contractual obligations, loss resulting from the
reformation or liberalization
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of policies, litigation expenses and all other loss adjustment expense,
except office expenses and salaries of the Company's regular employees) 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 salvage,
all recoveries and all claims on inuring insurance or reinsurance, whether
collectible or not. 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.
B. "Extra contractual obligations" as used herein shall mean 90.0% of any
punitive, exemplary, compensatory or consequential damages paid or payable by
the Company as a result of an action against it by its insured or its
insured's assignee, which action alleges negligence or bad faith on the part
of the Company in handling a claim under a policy subject to this Contract.
An extra contractual obligation shall be deemed to have occurred on the same
date as the loss covered or alleged to be covered under the policy.
Notwithstanding anything stated herein, this Contract shall not apply to 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.
C. As respects amounts paid by the Company subject to this Contract for debris
removal, including cleanup of pollutants, as respects business classified as
commercial property, "loss" shall mean an amount not to exceed 30.0% of the
direct physical loss or damage paid by the Company, for any one loss, any one
location, any one insured. "Loss" is further restricted to include only such
claims for debris removal, including cleanup of pollutants, reported to the
Company not more than 180 days immediately following the direct physical loss
or damage.
D. "Pollutant" as used herein shall mean any solid liquid, gaseous, or thermal
irritant or contaminant, including, but not limited to smoke, vapor, soot,
fumes, acids, alkalis, chemicals and waste. Waste includes materials to be
recycled, reconditioned or reclaimed.
Article IX - Loss Notices and Settlements
A. Whenever a loss sustained by the Company appears likely to result in a claim
hereunder, the Company shall notify the Reinsurer, and the Reinsurer shall
have the right to participate in the adjustment of the loss at its own
expense.
B. All loss settlements made by the Company, provided they are within the terms
of this Contract, and either under the strict conditions of the Company's
policies or by way of compromise, shall be unconditionally binding upon the
Reinsurer, and the Reinsurer agrees to pay all amounts for which it may be
liable upon receipt of reasonable evidence of the amount paid (or scheduled
to be paid) by the Company.
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C. All salvage and recoveries received subsequent to a loss settlement under
this Contract shall be applied as if received prior to said loss settlement,
and all necessary adjustment shall be made between the Company and the
Reinsurer immediately following receipt by the Company of such salvage or
recoveries.
Article X - 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.
Article XI - Reinsurance Premium
A. As premium for each excess layer of reinsurance coverage provided by this
Contract, the Company shall pay the Reinsurer the greater of the following:
1. The amount, shown as "Annual Minimum Premium" for that excess layer in
Schedule A attached hereto; or, in the event the early termination
provision outlined in paragraph A of Article II is exercised by the
Company, the amount shown as "Early Expiration Minimum Premium" for that
excess layer in Schedule A attached hereto.
2. The percentage, shown as "Premium Rate" for that excess layer in Schedule
A attached hereto, of the Company's net earned premium for the term of
this Contract.
B. The Company shall pay the Reinsurer an annual deposit premium for each excess
layer of an amount, shown as "Annual Deposit Premium" for that excess layer
in Schedule A attached hereto, in four equal installments of an amount, shown
as "Quarterly Deposit Premium" for that excess layer in Schedule A attached
hereto, on April 1, July 1 and October 1 of 1995, and January 1, 1996.
However, in the event that the Company elects to terminate this contract in
accordance with the early expiration provision outlined in paragraph A of
Article II, the Company shall not be required to pay the deposit due January
1, 1996.
C. Within 60 days after the expiration of this Contract, the Company shall
provide a report to the Reinsurer setting forth the premium due hereunder for
each excess layer, computed in accordance with paragraph A, and any
additional premium due the Reinsurer or return premium due the Company for
each such excess layer shall be remitted promptly.
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D. "Net earned premium" as used herein is defined as 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. For purposes of calculating net earned premium,
for multiple peril policies with indivisible premiums, if any, 80.0% of the
total Homeowners basic policy premium and 70.0% of the total basic Commercial
Multiple Peril policy premium shall be considered subject premium.
Article XII - Offset
The Company or the Reinsurer may offset any balance, whether on account of
premiums, commissions, loss or claim expenses due from one party to the other
under this Contract or under any other reinsurance contract heretofore or
hereafter entered into between the Company and the Reinsurer, whether acting as
assuming reinsurer or ceding company.
Article XIII - Inspection of Records
The Reinsurer may inspect the records of the Company pertaining to the risks
reinsured hereunder.
Article XIV - Net Retained Lines (BRMA 32B)
A. This Contract applies only to that portion of any policy which the Company
retains net for its own account, 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 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
which may have become due from such reinsurer(s), whether such inability
arises from the insolvency of such other reinsurer(s) or otherwise.
Article XV - Errors and Omissions (BRMA 14F)
Inadvertent delays, errors or omissions made in connection 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.
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Article XVI - 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.
Article XVII - 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 XVIII - Federal Excise Tax (BRMA 17A)
(Applicable to those reinsurers, excepting Underwriters at Lloyd's London and
other reinsurers exempt from Federal Excise Tax, who are domiciled outside the
United States of America.)
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 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 XIX - Unauthorized Reinsurers
A. If the Reinsurer is unauthorized in any state of the United States of America
or the District of Columbia, the Reinsurer agrees to fund its share of the
Company's ceded outstanding loss and loss adjustment expense reserves
(including incurred but not reported loss reserves) 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
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2. Escrow accounts for the benefit of the Company; and/or
3. Cash advances;
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. 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.
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 share of any
ceded outstanding loss and loss adjustment expense reserves (including
incurred but not reported loss reserves) 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 share of the Company's ceded outstanding
loss and loss adjustment expense reserves (including incurred but not
reported loss reserves), 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.
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Article XX - 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 immediately upon
demand, with reasonable provision for verification, 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.
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 XXI - Arbitration (BRMA 6J)
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
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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, each
Arbiter shall nominate three candidates within 10 days thereafter, two of
whom the other shall decline, and the decision shall be made by drawing lots.
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.
C. If more than one reinsurer is involved in the same dispute, all such
reinsurers shall 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 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 in which the Company has its principal office.
Article XXII - Service of Suit (BRMA 49C)
(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. It is agreed that 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 any 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
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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.
B. 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 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 XXIII - Assignments and Changes of Interest
No assignment or change of the Company's interest hereunder, whether voluntary
or involuntary and whether by merger or reinsurance of its entire business with
another company or otherwise, shall be binding upon the Reinsurer.
Article XXIV - 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 XXV - Intermediary (BRMA 23A)
E. W. Blanch Co. is hereby recognized as the Intermediary negotiating this
Contract for all business hereunder. All communications (including but not
limited to notices, statements, premium, return premium, commissions, taxes,
losses, loss adjustment expense, salvages and loss settlements) relating thereto
shall be transmitted to the Company or the Reinsurer through E. W. Blanch Co.,
Reinsurance Services, 3500 West 80th Street, Minneapolis, Minnesota 55431.
Payments by the Company to the Intermediary shall be deemed to constitute
payment to the Reinsurer. Payments by the Reinsurer to the Intermediary shall
be deemed to constitute 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 undermentioned at:
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Los Angeles, California, this day of 199 .
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Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
California General Underwriters Insurance Company, Inc.
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Schedule A
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
all of Los Angeles, California
Second Third
Excess Excess
Company's Retention $10,000,000 $17,500,000
Reinsurer's Per Occurrence Limit $ 7,500,000 $12,500,000
Reinsurer's Annual Limit $15,000,000 $25,000,000
Annual Minimum Premium $ 477,200 $ 557,133
Early Expiration Minimum Premium $ 357,900 $ 417,850
Premium Rate
Class of Business other than Auto Physical Damage 3.369% 3.733%
Auto Physical Damage 0.250% 0.350%
Annual Deposit Premium $ 596,500 $ 696,416
Quarterly Deposit Premium $ 149,125 $ 174,104
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Table of Contents
Article Page
I Classes of Business Reinsured 1
II Term 1
III Territory 2
IV Exclusions 2
V Retention and Limit 3
VI Reinstatement 3
VII Loss Occurrence (BRMA 27A) 4
VIII Definitions 5
IX Loss Notices and Settlements 6
X Salvage and Subrogation 7
XI Reinsurance Premium 7
XII Offset 8
XIII Inspection of Records 8
XIV Net Retained Lines (BRMA 32B) 8
XV Errors and Omissions (BRMA 14F) 8
XVI Currency (BRMA 12A) 9
XVII Taxes (BRMA 50C) 9
XIII Federal Excise Tax (BRMA 17A) 9
XIX Unauthorized Reinsurers 9
XX Insolvency 11
XXI Arbitration (BRMA 6J) 11
XXII Service of Suit (BRMA 49C) 12
XXIII Assignments and Changes of Interest 13
XXIV Agency Agreement 13
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XXV Intermediary (BRMA 23A) 13
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Interests and Liabilities Agreement
of
Certain Underwriting Members of Lloyd's
shown in the Signing Schedule attached hereto
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0% of the Second Excess Catastrophe Reinsurance
6.70% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, the Agreement shall, upon notice from the Company
prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it being understood that the Subscribing
Reinsurer shall in no event participate in the interests and liabilities of the
other reinsurers.
In any action, suit or proceeding to enforce the Subscribing Reinsurer's
obligations under the attached Contract, service of process may be made upon
Mendes & Mount, 750 Seventh Avenue, New York, New York 10019.
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Signed for and on behalf of the Subscribing Reinsurer in the Signing Schedule
attached hereto.
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Interests and Liabilities Agreement
of
Certain Insurance Companies
shown in the Signing Schedule(s) attached hereto
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0% of the Second Excess Catastrophe Reinsurance
8.30% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it being understood that the Subscribing
Reinsurer shall in no event participate in the interests and liabilities of the
other reinsurers.
In any action, suit or proceeding to enforce the Subscribing Reinsurer's
obligations under the attached Contract, service of process may be made upon
Mendes & Mount, 750 Seventh Avenue, New York, New York 10019.
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Signed for and on behalf of the Subscribing Reinsurer in the Signing Schedule(s)
attached hereto.
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Interests and Liabilities Agreement
of
Abeille Reassurances, U.S. Branch
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
4.00% of the Second Excess Catastrophe Reinsurance
0% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
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being understood that the Subscribing Reinsurer shall in no event participate in
the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
New York, New York, this day of 199 .
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Abeille Reassurances, U.S. Branch
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Interests and Liabilities Agreement
of
Allmerica Re
A Division of
The Hanover Insurance Company
Bedford, New Hampshire
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
1.25% of the Second Excess Catastrophe Reinsurance
1.50% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
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The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
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being understood that the Subscribing Reinsurer shall in no event participate in
the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Florham Park, New Jersey, this day of 199 .
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Allmerica Re, A Division of The Hanover Insurance Company
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Interests and Liabilities Agreement
of
AXA Reinsurance Company
Wilmington, Delaware
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
10.00% of the Second Excess Catastrophe Reinsurance
10.00% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
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being understood that the Subscribing Reinsurer shall in no event participate in
the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
New York, New York, this day of 199 .
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AXA Reinsurance Company
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Interests and Liabilities Agreement
of
First Excess and Reinsurance Corporation
Overland Park, Kansas
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
9.00% of the Second Excess Catastrophe Reinsurance
10.00% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
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being understood that the Subscribing Reinsurer shall in no event participate in
the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Overland Park, Kansas, this day of 199 .
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First Excess and Reinsurance Corporation
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Interests and Liabilities Agreement
of
Kemper Reinsurance Company
Long Grove, Illinois
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0% of the Second Excess Catastrophe Reinsurance
6.00% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
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being understood that the Subscribing Reinsurer shall in no event participate in
the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Long Grove, Illinois, this day of 199 .
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Interests and Liabilities Agreement
of
Nationwide Mutual Insurance Company
Columbus, Ohio
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
3.00% of the Second Excess Catastrophe Reinsurance
3.00% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
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being understood that the Subscribing Reinsurer shall in no event participate in
the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Columbus, Ohio, this day of 199 .
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Nationwide Mutual Insurance Company
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Interests and Liabilities Agreement
of
Prudential Reinsurance Company
Dover, Delaware
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
13.00% of the Second Excess Catastrophe Reinsurance
0% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
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being understood that the Subscribing Reinsurer shall in no event participate in
the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Newark, New Jersey, this day of 199 .
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Prudential Reinsurance Company
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Interests and Liabilities Agreement
of
San Francisco Reinsurance Company
Novato, California
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0% of the Second Excess Catastrophe Reinsurance
6.00% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
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being understood that the Subscribing Reinsurer shall in no event participate
in the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Novato, California, this day of 199 .
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San Francisco Reinsurance Company
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Interests and Liabilities Agreement
of
Security Reinsurance Company
Farmington, Connecticut
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0.50% of the Second Excess Catastrophe Reinsurance
0.50% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
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being understood that the Subscribing Reinsurer shall in no event participate
in the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Farmington, Connecticut, this day of 199 .
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Security Reinsurance Company
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Interests and Liabilities Agreement
of
Signet Star Reinsurance Company
Wilmington, Delaware
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
2.00% of the Second Excess Catastrophe Reinsurance
3.00% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
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being understood that the Subscribing Reinsurer shall in no event participate
in the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Florham Park, New Jersey, this day of 199 .
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Signet Star Reinsurance Company
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Interests and Liabilities Agreement
of
Sydney Reinsurance Corporation
Philadelphia, Pennsylvania
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
4.25% of the Second Excess Catastrophe Reinsurance
3.00% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
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being understood that the Subscribing Reinsurer shall in no event participate
in the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
New York, New York, this day of 199 .
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Sydney Reinsurance Corporation
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Interests and Liabilities Agreement
of
United Fire & Casualty Company
Cedar Rapids, Iowa
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
1.00% of the Second Excess Catastrophe Reinsurance
1.00% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
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being understood that the Subscribing Reinsurer shall in no event participate
in the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Cedar Rapids, Iowa, this day of 199 .
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United Fire & Casualty Company
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Interests and Liabilities Agreement
of
USF RE Insurance Company
Boston, Massachusetts
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
2.00% of the Second Excess Catastrophe Reinsurance
0% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
E. W. BLANCH CO.
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being understood that the Subscribing Reinsurer shall in no event participate
in the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Costa Mesa, California, this day of 199 .
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USF RE Insurance Company
E. W. BLANCH CO.
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Interests and Liabilities Agreement
of
Vesta Fire Insurance Corporation
Birmingham, Alabama
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
40.00% of the Second Excess Catastrophe Reinsurance
25.00% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
E. W. BLANCH CO.
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being understood that the Subscribing Reinsurer shall in no event participate
in the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Birmingham, Alabama, this day of 199 .
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Vesta Fire Insurance Corporation
E. W. BLANCH CO.
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Interests and Liabilities Agreement
of
Winterthur Reinsurance Corporation of America
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
5.00% of the Second Excess Catastrophe Reinsurance
1.00% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
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being understood that the Subscribing Reinsurer shall in no event participate
in the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
New York, New York, this day of 199 .
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Winterthur Reinsurance Corporation of America
E. W. BLANCH CO.
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Interests and Liabilities Agreement
of
Various Lloyd's Underwriters
through
Patriot Re Corporation
Princeton, New Jersey
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0% of the Second Excess Catastrophe Reinsurance
1.50% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
E. W. BLANCH CO.
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The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
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being understood that the Subscribing Reinsurer shall in no event participate
in the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Princeton, New Jersey, this day of 199 .
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Patriot Re Corporation
(for and on behalf of Underwriters at Lloyd's
as evidenced by the attached Contract)
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Interests and Liabilities Agreement
of
Renaissance Reinsurance Ltd.
Hamilton, Bermuda
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0% of the Second Excess Catastrophe Reinsurance
6.50% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
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being understood that the Subscribing Reinsurer shall in no event participate
in the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Hamilton, Bermuda, this day of 199 .
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Renaissance Reinsurance Ltd.
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Interests and Liabilities Agreement
of
Europa Re
Cologne, Germany
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0% of the Second Excess Catastrophe Reinsurance
2.00% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
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being understood that the Subscribing Reinsurer shall in no event participate
in the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Cologne, Germany, this day of 199 .
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Europa Re
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Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
E. W. Blanch Co.
Reinsurance Services
3500 West 80th Street
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Minneapolis, Minnesota 55431
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Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
Second Excess Catastrophe Reinsurance
Reinsurers Participations
Abeille-Paix Management, Incorporated
(for Abeille Reassurances, U.S. Branch) 4.00%
Allmerica Re, A Division of The Hanover Insurance Company 1.25
AXA Reinsurance Company 10.00
First Excess and Reinsurance Corporation 9.00
Nationwide Mutual Insurance Company 3.00
Prudential Reinsurance Company 13.00
Security Reinsurance Company 0.50
Signet Star Reinsurance Company 2.00
Sydney Reinsurance Corporation 4.25
United Fire & Casualty Company 1.00
USF RE Insurance Company 2.00
Vesta Fire Insurance Corporation 40.00
Winterthur Reinsurance Corporation of America 5.00
Total 95.00% part of
100% share in
the interests and
liabilities of the
"Reinsurer"
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Third Excess Catastrophe Reinsurance
Reinsurers Participations
Allmerica Re, A Division of The Hanover Insurance Company 1.50%
AXA Reinsurance Company 10.00
First Excess and Reinsurance Corporation 10.00
Kemper Reinsurance Company 6.00
Nationwide Mutual Insurance Company 3.00
Patriot Re Corporation (for Various Lloyd's Underwriters) 1.50
Renaissance Reinsurance Ltd. 6.50
San Francisco Reinsurance Company 6.00
Security Reinsurance Company 0.50
Signet Star Reinsurance Company 3.00
Sydney Reinsurance Corporation 3.00
United Fire & Casualty Company 1.00
Vesta Fire Insurance Corporation 25.00
Winterthur Reinsurance Corporation of America 1.00
Through Swire Blanch Europe
Europa Re 2.00
Through Nelson Hurst Reinsurance Brokers Limited
Lloyd's Underwriters and Companies
Per Signing Schedule(s) 15.00
Total 95.00% part of
100% share in
the interests and
liabilities of the
"Reinsurer"
E. W. Blanch Co.
Reinsurance Services
3500 West 80th Street
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Minneapolis, Minnesota 55431
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