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Exhibit 10.33
REVERSE FRANCHISE CATASTROPHE
EXCESS OF LOSS REINSURANCE
(hereinafter referred to as the "Agreement")
between
TRENWICK AMERICA REINSURANCE CORPORATION
Stamford, Connecticut
(hereinafter referred to as "the Company")
and
SUBSCRIBING REINSURERS
AS PER THE ATTACHED INTERESTS & LIABILITIES AGREEMENT
(hereinafter referred to as "the Reinsurers")
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ARTICLE I - BUSINESS COVERED
The Reinsurers will indemnify the Company, subject to the limits set forth in
the Retention and Limit Article for any loss or losses occurring during the term
of this Agreement. This Agreement shall cover all Original Contracts
underwritten by the Company and classified by the Company as Property
Reinsurance Business Assumed, including the Property portions of Multi-Line
Business and Workers Compensation and/or Employers Liability losses arising from
one or more of the following perils: Fire, Lightening, Explosion, Structural
Collapse, Windstorm, Hail, Flood, Seismic Activity, Volcanic Eruption,
Collision, Riots and Strikes, Civil Commotion, or Malicious Mischief, and any
Physical Damage and/or Consequential Loss Coverage contingent thereon effected
by an insured on behalf of another party.
All reinsurance for which the Reinsurers will be obligated by virtue of this
Agreement will be subject to the same terms, conditions, interpretations,
waivers, modifications, and alterations as the respective original contracts of
the Company to which this Agreements applies. Nothing herein will in any manner
create any obligations or establish any rights against the Reinsurers in favor
of any third parties or any persons not parties to this Agreement except as
provided in the Insolvency Article.
ARTICLE II - TERM
This Agreement will apply to all losses occurring during the 12-month term
incepting at 12:01 a.m. Eastern Standard Time on April 1, 1997.
Notwithstanding the expiration of this Agreement as hereinabove provided, its
provisions will continue to apply to all unfinished business hereunder to the
end that all obligations and liabilities incurred by each party hereunder will
be fully performed and discharged.
ARTICLE III - EXTENDED TERMINATION
Should this Agreement expire while a loss occurrence covered hereunder is in
progress, subject to the other conditions of this Agreement, the Reinsurers will
indemnify the Company as if the entire loss occurrence had arisen during the
term of this Agreement, and provided that no part of said loss occurrence is
claimed against any renewal of this Agreement.
ARTICLE IV - TERRITORY
The territorial limits of this Agreement shall only cover losses occurring in
the United States of America, the District of Columbia and Canada.
ARTICLE V - EXCLUSIONS
No reinsurance indemnity will be afforded under this Agreement for:
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A Loss or damage directly caused by war and/or civil war, but this
exclusion will not apply to business written in accordance with the
Market War and/or Civil War Exclusion Agreement.
B Any loss or liability accruing to the Company directly or indirectly
and whether as insurer or reinsurer from any pool of insurers or
reinsurers formed for the purposes of covering Atomic or Nuclear Energy
Risks.
C Nuclear risks as defined in the following:
1 Nuclear Incident Exclusion Clause - Physical Damage -
Reinsurance (U.S.A.) attached to this Agreement, or as may be
revised hereafter by the Lloyd's Underwriters Non-Marine
Association.
2 Nuclear Incident Exclusion Clause - Physical Damage -
Reinsurance (Canada) attached to this Agreement, or as may be
revised hereafter by the Lloyd's Underwriters Non-Marine
Association.
3 Nuclear Energy Risks Exclusion Clause (Reinsurance) (1994)
(Worldwide Excluding U.S.A. & Canada) attached to this
Agreement, or as may be revised hereafter by the Lloyd's
Underwriters Non-Marine Association.
4 Nuclear Incident Exclusion Clauses - Physical Damage and
Liability (Boiler and Machinery Policies) - Reinsurance
(U.S.A. and Canada) attached to this Agreement, or as may be
revised hereafter by the Lloyd's Underwriters Non-Marine
Association.
D Financial Guarantee, Insolvency, or Credit Business.
E Fidelity and Surety.
F Reinsurance of Coastal Pools when written as such.
G Life business, other than Accidental Death and Dismemberment.
H Aviation, Aerospace, and Satellite business.
I Casualty business, except as set forth in the Coverage Article.
J Hail damage to growing or standing crops.
K Banking or Funding Plans.
L Loss or liability excluded by the Insolvency Funds Exclusion Clause
attached to this Agreement.
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M Reinsurance assumed on an excess of loss and/or pro rata reinsurance
basis issued in the name of and for the account of a Lloyd's Syndicate
or of an insurance or reinsurance company, whether such liability is
accepted either directly or under any form of reinsurance from other
insurers and/or reinsurers, and all such liability is excluded from the
protection of this Reinsurance and cannot be taken into account in
arriving at the amount in the excess of which this Reinsurance attaches
or the ultimate net loss sustained by the Company.
N All losses sustained by the Company howsoever and wheresoever arising
including all Business Interruption, Consequential Loss and/or other
contingent losses proximately caused by a peril insured in respect of
the Company's exposures from:
1 All marine business when written as such; however, not to
exclude such exposures if they emanate from a multi-line
insurance contract and/or policy.
2 All Offshore exposures arising from business of any
description connected with the oil and/or gas and/or sulphur
and/or uranium exploration and production industries in all
their phases and including all associated support and/or
service industries.
"Offshore" will be defined as:
(a) That area encompassing locations covered by oceans or
seas in which water ebbs and flows
and/or
(b) Other navigable waters or waterways which will mean
any water which is in fact navigable by ships or
vessels, whether or not the tide ebbs and flows
there, and whether or not there is a public right of
navigation on that water.
O Losses in respect of overhead transmission and distribution lines and
their supporting structures other than those on or within 500 feet of
the insured premises; however, public utilities extension and/or
contingent business interruption coverages are not subject to this
exclusion, provided that these are not part of a transmitter's or
distributor's policy.
P Auto Collision.
The exclusions set forth above will not apply where the Company is obliged to
provide coverage by reason of membership in any state plan, pool, facility,
joint underwriting association or similar involuntary participation.
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The Company may submit to the Reinsurers for special acceptance hereunder,
business not covered by this Agreement. If said business is accepted by the
Reinsurers, it will be subject to the terms of this Agreement, except as such
terms are modified by such acceptance.
ARTICLE VI - DEFINITIONS
The following words and phrases used in this Agreement will have the indicated
meanings:
A "Original Contracts" as used in this Agreement will mean any and all
policies, binders, certificates, acceptances, contracts, or agreements
of reinsurance, whether written or oral.
B "Loss occurrence" as used in this Agreement will mean all losses
arising out of or following one event. As regards aggregate and/or stop
loss original contracts assumed by the Company, the proportion of such
loss or losses that forms part of the Company's ultimate net loss under
this Agreement will be the proportion of the whole aggregate recovery
that the original reinsured's individual catastrophe loss bears to its
total losses used in arriving at aggregate excess recoveries.
C "Ultimate Net Loss" as used in this Agreement will mean the actual loss
or losses sustained by the Company both as regards the original
contracts and this Agreement, including 80% of any extra contractual
obligations incurred by the Company, on its net retained liability
after making deductions for all recoveries, salvages, and all
reinsurance (other than underlying reinsurance) whether collectible or
not. Ultimate net loss will cover loss expense incurred by the Company
(both as regards the original contracts and this Agreement) and arising
from the settlement of claims, including interest and court costs
incurred in investigation, adjustment, and litigation and a pro rata
share of salaries and expenses of the field adjusters of the original
reinsured and the Company while adjusting such claims, and expenses of
other employees of the original reinsured and the Company who have been
temporarily diverted from their normal and customary duties as a result
of such claims. However, both salaries of other employees and office
expenses of the original reinsured and Company will be excluded.
All salvage, recoveries, or reinsurance payments received subsequent to
any loss settlement hereunder will be applied as if received prior to
the settlement, and all necessary adjustments will be made by the
parties hereto. Nothing in this definition, however, should be
construed to mean that losses under this Agreement are not recoverable
until the Company's ultimate net loss has been ascertained.
ARTICLE VII - RETENTION AND LIMIT
No claim will be made hereunder unless the Company has first sustained an
ultimate net loss in excess of $1,000,000 each and every loss occurrence. The
Reinsurers will then be liable for the amount of ultimate net loss in excess of
$1,000,000 each and every loss occurrence,
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but the limit of liability of the Reinsurers will not exceed $2,000,000 with
respect to each and every loss occurrence in all.
ARTICLE VIII - NET RETAINED LIABILITY
In computing the amount or amounts in excess of which this Agreement attaches,
only a loss or losses in respect to that portion of any reinsurance that the
Company retains net for its own account will be included. The amount of the
Reinsurers' liability hereunder with respect to any loss or losses will not be
increased by the inability of the Company to collect from any other Reinsurers
any amounts that may have become due from them, whether such inability arises
from the insolvency of such Reinsurers or otherwise.
ARTICLE IX - RATE AND PREMIUM
For the term of this Agreement, there will be a premium hereon of $150,000
payable on April 1, plus an additional premium equal to 7.5% of all paid losses
hereunder, subject to a maximum additional premium of $150,000.
The adjustment of the original premium to take into account any such paid losses
hereunder shall be made at the anniversary date of this contract and each year
thereafter until the losses are finally settled.
ARTICLE X - EXTRA CONTRACTUAL OBLIGATIONS
This Agreement will extend to cover losses arising from claims related extra
contractual obligations whether incurred by the original reinsured or the
Company in accordance with the percent factors as set forth in the ultimate net
loss definition.
"Extra contractual obligations" as used in this Agreement will mean those
liabilities not covered under any other provision of this Agreement, which arise
from the handling of any claim on business covered hereunder, such liabilities
arising because of, but not limited to, the following: failure to settle within
the policy limit, by reason of alleged or actual negligence, fraud, or bad faith
in rejecting an offer of settlement, in the preparation of the defense, in the
trial of any action against the insured or reinsured, or in the preparation or
prosecution of an appeal consequent upon such action.
There will be no recovery hereunder for an extra contractual obligation loss
that has been incurred due to fraud committed by a member of the board of
directors or a corporate officer of an original reinsured or the Company, acting
individually, collectively, or in collusion with a member of the board of
directors, a corporate officer, or a partner of any other corporation,
partnership, or organization involved in the defense or settlement of a claim on
behalf of an original reinsured or the Company.
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The date on which any extra contractual obligation is incurred by an original
reinsured or the Company will be deemed, in all circumstances to be the date of
the related occurrence under the original policy. Nothing in this Article will
be construed to create a separate or distinct loss occurrence apart from the
original covered loss occurrence that gave rise to the extra contractual
obligations discussed in the preceding paragraphs. In no event will the total
limit of liability of the Reinsurers exceed their applicable limit of liability
as set forth in the Retention and Limit Article.
ARTICLE XI - RESERVES
(This Article is only applicable to those Reinsurers who cannot qualify
for credit by each state or governmental authority having jurisdiction
over the Company's loss reserves)
As regards original contracts issued by the Company coming within the scope of
this Agreement, the Company agrees that, when it files with the Insurance
Department or sets up on its books reserves for known losses that have been
reported to the Reinsurers (including loss and loss expense paid by the Company
but not recovered from the Reinsurers and loss and loss expense reported and
outstanding), which it is required by law to set up, it will forward to the
Reinsurers a statement showing the proportion of such loss reserves applicable
to them. The Reinsurers hereby agree that they will apply for and secure
delivery to the Company of a clean, irrevocable, and unconditional Letter of
Credit issued by Citibank, N.A. (or another member of the Federal Reserve
System) or any bank approved for use by the NAIC Securities Valuation Office,
and containing provisions acceptable to the insurance regulatory authorities
having jurisdiction over the Company's reserves in an amount equal to the
Reinsurers proportion of such reserves as shown in the statement prepared by the
Company. Under no circumstances will any amount relating to reserve in respect
of Incurred But Not Reported losses be included in the amount of the Letter of
Credit.
The Letter of Credit will be issued for a period of not less than one year, and
will be automatically extended for one year from its date of expiration or any
future expiration date unless 30 days prior to any expiration date the issuing
bank notifies the Company by registered mail that it elects not to consider the
Letter of Credit extended for any additional period. An issuing bank, not a
member of the Federal Reserve System or not chartered in the state of domicile
of the Company, will provide 60 days notice to the Company by registered mail
prior to any expiration in the event of nonextension.
Notwithstanding any other provisions of this Agreement, the Company or its
court-appointed successor in interest may draw upon such credit at any time
without diminution because of the insolvency of the Company or of any Reinsurer
for one or more of the following purposes only:
A To pay the Reinsurers' share or to reimburse the Company for the
Reinsurers' share of any loss reinsured by this Agreement, which has
not otherwise been paid.
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B To make refund of any sum in excess of the actual amount required to
pay the Reinsurers' share of any liability reinsured by this Agreement.
C In the event of nonextension of the Letter of Credit as provided for
above, to establish deposit of the Reinsurers' share of reserves for
losses under this Agreement. Such cash deposit will be held in an
interest bearing account separate from the Company's other assets, and
interest thereon will accrue to the benefit of the Reinsurers.
The issuing bank will have no responsibility whatsoever in connection with the
propriety of withdrawals made by the Company or the disposition of funds
withdrawn, except to ensure that withdrawals are made only upon the order of
properly authorized representatives of the Company.
At annual interval, or more frequently as agreed but never more frequently than
semi-annually, the Company will prepare a specific statement, for the sole
purpose of amending the Letter of Credit, of the Reinsurers' share of reserves
for losses. If the statement shows that the Reinsurers' share of such reserves
exceeds the balance of credit as of the statement date, the Reinsurers will,
within 30 days after receipt of notice of such excess, secure delivery to the
Company of an amendment of the Letter of Credit, increasing the amount of credit
by the amount of such difference. If, however, the statement shows that the
Reinsurers' share of such reserves is less than the balance of credit as of the
statement date, the Company will, within 30 days after receipt of written
request from the Reinsurers, release such excess credit by agreeing to secure an
amendment to the Letter of Credit, reducing the amount of credit available by
the amount of such excess credit.
ARTICLE XII - LOSS NOTICES AND SETTLEMENTS
The Company will advise the Reinsurers promptly of all losses that, in the
opinion of the Company, appear to involve the Reinsurers under this Agreement
and of all subsequent developments pertaining thereto that, in the opinion of
the Company, may materially affect them as well. Inadvertent omission in
dispatching the aforementioned notices will in no way affect the obligation of
the Reinsurers under this Agreement, providing the Company informs the
Reinsurers of such omission promptly upon discovery.
The Company will have the right to settle all claims under this Agreement. The
loss settlements of the original reinsured, provided they are within the terms
of the original contracts, and the loss settlements of the Company, provided
they are within the terms of this Agreement, will be unconditionally binding on
the Reinsurers in proportion to their participation in this Agreement. Amounts
due the Company hereunder in the settlement of loss and loss expense will be
payable by the Reinsurers immediately upon being furnished by the Company with
reasonable evidence of the amount paid or to be paid in excess of the Company's
ultimate net loss retention as set forth in the Retention and Limit Article, by
reason of any one loss occurrence.
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ARTICLE XIII - OFFSET
The Company and each Reinsurer hereunder will be entitled to deduct from amounts
due the other party under this Agreement any amounts due itself from the other
party under this Agreement.
ARTICLE XIV - SALVAGE AND SUBROGATION
The Reinsurers will be credited with their share of salvage and/or subrogation
(i.e., reimbursement obtained or recovery made by the Company less expense
incurred in obtaining such reimbursement or making such recovery) pertaining to
the claims and settlements involving reinsurance hereunder.
Salvage and/or subrogation will always be used to reimburse the excess
Reinsurers (and the Company if it carries a portion of the excess coverage net)
in the reverse order of their participation in said loss before being used in
any way to reimburse the Company for the loss within its primary retention. If
salvage and/or subrogation is insufficient to cover the expense incurred in its
recovery, the net expense (after deduction of the amount recovered, if any) will
be added to ultimate net loss as will loss expense incurred by the Company prior
to any reimbursement for salvage and/or subrogation.
ARTICLE XV - WARRANTIES
Claims will only be eligible for recovery hereunder if there is an original
insured market loss from one event (for first party physical damage only) equal
to or less than $2,000,000,000 in the U.S.A., the District of Columbia and
Canada.
This loss will be determined by the stated values reported in the Property
Claims Services Division or the "Insurance Facts" Handbook for U.S. losses. In
the event of a market loss involving the U.S.A., the District of Columbia and
Canada and countries outside the U.S.A., the District of Columbia and Canada the
amount of the market loss shall be understood to mean only that part of the loss
pertaining to the U.S.A., the District of Columbia and Canada.
In the event that the Property Claims Service is discontinued, or they
materially change their methodology in a way that makes them unsuitable for the
purposes intended, an alternative source will be used subject to the agreement
of the Leading Underwriter and the Company. The final determination of the
insured Market Loss shall be established 24 months after the occurrence.
However, the Company shall be entitled to make provisional recovery for actual
paid losses recoverable under this Agreement based on prior statements of loss
by the source mentioned above.
Notwithstanding the above, the Company specifically agrees to return all claims
monies received from Reinsurers hereon as soon as practicable, in respect of any
loss (or losses), if
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(a) finally determined at above $2,000,000,000 or equivalent in any other
currency or
(b) when the reserve for such loss, as defined herein is increased to above
$2,000,000,000 or equivalent in any other currency, whichever the sooner.
No loss shall attach hereunder unless the Company sustain loss from two or more
original risks involved in the same loss event. For the purpose of the above,
any one risk is defined as all values at one location including all business
interruption and/or time element exposures whether by way of Contingent Business
Interruption, Suppliers or Customers extensions.
ARTICLE XVI - DELAYS, ERRORS AND OMISSIONS
Inadvertent delays, errors, or omissions made in connection with this Agreement
or any transaction hereunder will not relieve either party from any liability
that would have attached had such delay, error, or omission not occurred,
provided always that such error or omission is rectified immediately upon
discovery. The liability of the Reinsurers under this Agreement will in no event
exceed the limits specified in the Retention and Limit Article, nor will the
Reinsurers' liability be extended to cover any risks, perils, or classes of
insurance excluded herein except as set forth in the Exclusions Article.
ARTICLE XVII - AMENDMENTS
This Agreement may be altered or amended in any of its terms and conditions by
mutual consent of the Company and the Reinsurers by addenda hereto, which will
then constitute a part of this Agreement.
ARTICLE XVIII - ACCESS TO RECORDS
Provided that the Company has been given reasonable notice, the Reinsurers will
have the right to inspect at any reasonable time, through their designated
representatives, all records of the Company that pertain in any way to this
Agreement.
ARTICLE XIX-INSOLVENCY
In the event of the Company's insolvency, the reinsurance under this Agreement
will be payable by the Reinsurers directly to the Company, its liquidator,
receiver, conservator or statutory successor on the basis of the Company's
liability under the original contracts without diminution because of the
Company's insolvency or because the liquidator; receiver, conservator or
statutory successor of the Company has failed to pay all or a portion of any
claims, subject however, to the right of the Reinsurers to offset from such
funds due hereunder, any sums that may be payable to it by said insolvent
Company in accordance with the Offset Article
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As a condition precedent to the Reinsurers foregoing obligation, however, the
liquidator, receiver, conservator or statutory successor of the Company will
give written notice of the pendency of a claim against the insolvent Company on
the original contract or contracts reinsured within a reasonable time after such
claim is filed in the insolvency proceeding. During the pendency of such claim,
the Reinsurers may investigate such claim and interpose, at their own expense,
in the proceeding where such claim is to be adjudicated, any defense they may
deem available to the Company, its liquidator, receiver, conservator or
statutory successor. The expense thus incurred by the Reinsurers shall be
chargeable against the Company, subject to court approval, as part of the
expense of conservation or liquidation to the extent that such proportionate
share of the benefit will accrue to the Company solely as a result of the
defense undertaken by the Reinsurers. .
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 Agreement as though such
expense had been incurred by the Company.
ARTICLE XX-ARBITRATION
As a condition precedent to any right of action hereunder, any dispute arising
out of this Agreement shall be submitted to the decision of a board of
arbitration composed of two arbitrators and an umpire, meeting in the City in
which the Company's Head Office is located unless otherwise agreed.
The members of the board of arbitration shall be active or retired disinterested
officials of insurance or reinsurance companies, or Lloyd's Underwriters. Each
party shall appoint its arbitrator and the two arbitrators shall choose an
umpire before instituting the hearing. In the event that either party should
fail to choose an arbitrator within thirty (30) days following a written request
by the other party to enter upon arbitration, the requesting party may choose
two arbitrators who shall in turn choose an umpire before entering upon
arbitration. In the event the two arbitrators fail to agree on an umpire either
party shall have the right to submit the matter to the American Arbitration
Association in effect at that time.
Each party shall present its case to the arbitrators within sixty (60) days
following the date of their appointment. The board shall make its decision with
regard to the custom and usage of the insurance and reinsurance business. The
board shall issue its decision in writing based upon a hearing in which evidence
may be introduced without following strict rules of evidence but in which
cross-examination and rebuttal shall be allowed. The board shall make its
decision within sixty (60) days following the termination of the hearings unless
the parties consent to an extension. The majority decision of the board shall be
final and binding upon all parties to the proceeding. Judgment may be entered
upon the award of the board in any court having jurisdiction thereof. 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 clause and communications
shall be made by the Company to each of the reinsurers constituting the one
party, provided, however, that nothing shall impair the rights of such
reinsurers to assert several, rather than joint, defenses or claims, nor
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be construed as changing the liability of the Reinsurer under the terms of this
Agreement from several to joint. Each party shall bear the expense of its own
arbitrator and shall jointly and equally bear with the other party the expense
of the umpire. The remaining costs of the arbitration proceedings shall be
allocated by the board.
ARTICLE XXI - TAXES
The Company will pay all taxes (except Federal Excise Tax) on premiums reported
to the Reinsurers on this Agreement.
ARTICLE XXII - FEDERAL EXCISE TAX
(This Article applies to Reinsurers domiciled outside the United States of
America, excepting Lloyd's of London Underwriters and other Reinsurers exempt
from Federal Excise Tax.)
The Reinsurers will allow for the purpose of paying Federal Excise Tax the
applicable percentage of the premium payable hereon (as imposed under Section
4371 of the Internal Revenue Service Code) to the extent such premium is subject
to such tax. In the event of any return of premium, the Reinsurers will deduct
the aforesaid percentage from the return premium payable hereon and the Company
or its agent will recover such tax from the United States Government.
ARTICLE XXIII - CURRENCY
The use of the sign "$" in this Agreement is in reference to United States of
America Dollars. Therefore, premiums due the Reinsurers and loss payments due
the Company hereunder will be in United States of America Dollars.
ARTICLE XXIV - SERVICE OF SUIT
(This Article applies to those Reinsurers domiciled outside the United States of
America as well as those Reinsurers unauthorized in the Company's state of
domicile. This Article is not intended to conflict with or override the parties'
obligation to arbitrate their disputes in accordance with the Arbitration
Article.)
In the event of the failure of any Reinsurer hereon to pay any amount claimed to
be due hereunder, the Reinsurer, at the request of the Company, will submit to
the jurisdiction of a Court of competent jurisdiction within the United States.
Nothing in this Article constitutes or should be understood to constitute a
waiver of the Reinsurers' right to commence an action in any Court of competent
jurisdiction in the United States, to remove an action to a United States
District Court, or to seek a transfer of a case to another Court as permitted by
the laws of the United States or of any state in the United States. Service of
process in such suit may be made upon Mendes and Mount, 750 Seventh Avenue, New
York, New York 10019-6829, or another party specifically designated in the
applicable Interests and
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Liabilities Agreement attached hereto. In any suit instituted against it upon
this Agreement, the Reinsurer will abide by the final decision of such Court or
of any Appellate Court in the event of an appeal.
The above named are authorized and directed to accept service of process on
behalf of the Reinsurer in any such suit and/or upon the request of the Company
to give a written undertaking to the Company that they will enter a general
appearance upon the Reinsurers' behalf in the event such a suit is instituted.
Further, pursuant to any statute of any state, territory, or district of the
United States that makes provision therefore, the Reinsurer hereby designates
the Superintendent, Commissioner, or Director of Insurance or other officer
specified for that purpose in the statute (or his successor or successors in
office( as its true and lawful attorney upon whom may be served any lawful
process in any action, suit, or proceeding instituted by or on behalf of the
Company or any beneficiary hereunder arising out of this Agreement, and hereby
designates the above named as the person to whom the said officer is authorized
to mail such process or a true copy thereof.
ARTICLE XXV - INTERMEDIARY
Ballantyne, McKean and Sullivan Limited., are hereby recognized as the
Intermediary negotiating this Agreement for all business hereunder. All
communication (including, but not limited to, notices, statements, premiums,
return premiums, losses, loss adjustment expenses, salvages and loss
settlements) relating thereto shall be transmitted to the Reinsurers or the
Company through Ballantyne, McKean and Sullivan Limited., Latham House, 16
Minories, London EC3N 1AX. 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 only to constitute payment to the Company to the
extent that such payments are actually received by the Company.
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Our Ref : 973676005
INTERESTS AND LIABILITIES AGREEMENT
to the
REVERSE FRANCHISE CATASTROPHE
EXCESS OF LOSS REINSURANCE
(hereinafter referred to as the "Agreement")
between
TRENWICK AMERICA REINSURANCE CORPORATION
STAMFORD, CONNECTICUT
(hereinafter referred to as the "Company")
and
CERTAIN INSURANCE/REINSURANCE COMPANIES
(hereinafter referred to as "the Reinsurers")
This Agreement shall be effective at 12.01 a.m. Eastern Standard Time, 1st
April, 1997, and shall remain in force until terminated in accordance with the
provisions of the attached Agreement.
The share of the Reinsurers in the Interests and Liabilities of the Reinsurers'
in respect of the said Agreement shall be separate and apart from the shares of
the other Reinsurers' to the said Agreement, and the Interests and Liabilities
of the Reinsurers shall not be joint with those of the other Reinsurers' and in
no event shall the Reinsurers participate in the Interests and Liabilities of
the other Reinsurers'.
The Reinsurers shall have a 66.67 % share of this Agreement.
IN WITNESS WHEREOF, the Reinsurers hereon, by their respective duly authorized
officer, has executed this Agreement as of the date undermentioned.
Signed in this day of ,1997
For and on behalf of: TRENWICK AMERICA
REINSURANCE CORPORATION
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and in this day of ,1997
For and on behalf of: CERTAIN INSURANCE/REINSURANCE
COMPANIES (as per schedule attached)
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