REINSURANCE AGREEMENT Guaranteed Asset Protection Waivers

Transcription

1 REINSURANCE AGREEMENT Guaranteed Asset Protection Waivers BETWEEN Turks & Caicos Islands, British West Indies Referred to as the "ASSUMING INSURER" And Symi Insurance, Ltd. Turks & Caicos Islands, British West Indies Referred to as the "CEDING INSURER" Effective:

2 REINSURANCE AGREEMENT Guaranteed Asset Protection Waivers THIS AGREEMENT is entered into effective by and between SYMI INSURANCE, LTD., a company incorporated under the laws of the Turks and Caicos Islands, British West Indies (hereinafter called CEDING INSURER) and, a company incorporated under the laws of the Turks and Caicos Islands, British West Indies (hereinafter called ASSUMING INSURER). ARTICLE I The CEDING INSURER hereby agrees to cede to the ASSUMING INSURER, and the ASSUMING INSURER agrees to accept up to % of the liability under the Guaranteed Asset Protection Waivers issued by the Producers listed in Appendix A (hereinafter referred to as "Said Policies"). CEDING INSURER further agrees to cede to ASSUMING INSURER that proportionate share of the premiums. A list of the producers of insurance covered by this agreement is attached as Appendix A. ARTICLE II The CEDING INSURER shall pay to the ASSUMING INSURER a reinsurance premium based upon ( %) of the Net Premiums received by the CEDING INSURER from the producers listed in Appendix A. "Net Premiums" shall mean gross premiums written on Said Policies less premiums refunded. ARTICLE III The liability of ASSUMING INSURER shall commence immediately upon acceptance of the reinsurance premium paid by CEDING INSURER on the reinsured policies; it being the intention of the Agreement that ASSUMING INSURER shall bear and be responsible for all liabilities on the policies being assumed. ARTICLE IV As soon as practicable after the end of each calendar month, the CEDING INSURER shall produce a statement, providing the following information for the preceding month: 1. The total Net Premiums/Reserves received on Said Policies during the preceding month. ARTICLE V In ceding the reinsurance premiums pursuant to Article II, the CEDING INSURER shall pay to the ASSUMING INSURER the net amount resulting from the sum of Item 1 less Item 2 as referenced in Article IV. The net amount is to be paid by the CEDING INSURER directly to the account of the ASSUMING INSURER, such payment to be made within thirty (30) business days after the receipt of Net Premiums by the CEDING INSURER. ARTICLE VI The CEDING INSURER and the ASSUMING INSURER recognize that sound business practices require the ASSUMING INSURER to maintain insurance reserves under the reinsured policies. The ASSUMING INSURER agrees to establish and maintain assets in an amount equal to the sum of said reserves and liabilities

3 ARTICLE VII In the event of insolvency of CEDING INSURER the commission under this agreement shall be payable, without diminution because of CEDING INSURER'S insolvency, by ASSUMING INSURER to CEDING INSURER'S liquidator, receiver, or statutory successor on the basis of the claim or claims allowed on said insurances against the insolvent CEDING INSURER, by any court of competent jurisdiction or any justice or judge thereof, or by any receiver, liquidator, or statutory successor having authority to determine and allow such claims. It is agreed, however, that the liquidator, receiver, or statutory successor of CEDING INSURER shall have to give written notice to ASSUMING INSURER of the pendency of such claim. ASSUMING INSURER may investigate such claim and interpose, at its own expense, in the proceeding where such claim is to be adjudicated, any defense or defenses which it may deem available to CEDING INSURER or its liquidator, receiver, or statutory successor. The expense thus incurred by ASSUMING INSURER shall be chargeable, subject to court approval, against CEDING INSURER as part of the expense of liquidation to the extent of the proportionate share of the benefits which may accrue to CEDING INSURER solely as a result of the defense undertaken by ASSUMING INSURER. ARTICLE VIII In the event of insolvency, bankruptcy, rehabilitation or liquidation of ASSUMING INSURER, CEDING INSURER may retain all or any portion of any amount then due or which may become due to ASSUMING INSURER under this treaty for the purpose of paying any and all liability hereunder until it has been discharged. CEDING INSURER shall pay to ASSUMING INSURER the balance of such amounts withheld as may remain provided no default by ASSUMING INSURER has occurred, in which case ASSUMING INSURER, its liquidator, receiver or statutory successor forfeit any amounts which may remain. ARTICLE IX This Agreement supersedes all prior agreements of the parties and constitutes the entire contract between the parties and may not be altered, modified or in any way amended, except by an instrument in writing duly executed by duly authorized executive officers of the parties. ARTICLE X If an irreconcilable difference of opinion should arise between the parties as to the interpretation of this agreement and the dispute cannot be resolved informally, the dispute shall be settled by arbitration. In such cases, the parties will submit their differences to three (3) arbitrators. One arbitrator shall be chosen by the ASSUMING INSURER, one by the CEDING INSURER and a third arbitrator, an umpire, shall be chosen by the arbitrators. In the event that the arbitrators are not able to agree on the choice of the umpire, the appointment shall be left to the President of the American Arbitration Association, or its successor. The arbitrators must be executive officers or retired officers of insurance companies unaffiliated to the two parties to this Agreement or their affiliates. The arbitration hearing will take place in Providenciales, Turks and Caicos at a time and place to be specified by notice, in writing, given by the umpire at least 10 days before such hearing date.

4 Arbitration may be initiated by either the CEDING INSURER or the ASSUMING INSURER (the petitioner) demanding arbitration in writing delivered by certified mail or in person to the other and naming its arbitrator. The other party (the respondent) shall have ten (10) days, after receipt of such demand, within which to designate its arbitrator by writing similarly delivered to the petitioner. If respondent does not name its arbitrator within the specified ten (10) days, the petitioner may designate the second arbitrator and the respondent shall be bound by such designation. The umpire shall be chosen by the two arbitrators named by the parties within ten (10) days after the designation of the second arbitrator, and the arbitration hearing shall be held in the place hereinabove set forth within twenty (20) days after the appointment of the umpire. The arbitrators shall not be bound by any rules of law. They shall decide the dispute by a majority vote and there shall be no appeal from their written decision. The costs of the arbitration shall be shared equally by both parties unless the arbitration award shall direct otherwise. All written demands for arbitration and designations of arbitrators shall be effected by certified mail, return receipt requested, or by delivery via overnight courier, or by delivery in person to the offices of the CEDING INSURER or the ASSUMING INSURER. ARTICLE XI Either party may terminate this Agreement by giving the other party ninety (90) days' prior written notice of its intention to terminate. Upon termination by either party, this Reinsurance Agreement shall continue to apply to Insurance in force on Said Policies issued prior to the effective date of such termination. ARTICLE XII Whenever this Agreement calls for written notice on the part of the parties hereto, said notice requirement will be satisfied by mailing the same via certified mail, return receipt requested, or by delivery via overnight courier, or by delivery in person, to the concerned party as follows: CEDING INSURER: SYMI INSURANCE COMPANY, LTD 7697 WEST PARKSIDE DRIVE YOUNGSTOWN, OHIO ATTN: Robert Fox ASSUMING INSURER: ATTN: ARTICLE XIII This document may only be amended by a written document signed by both CEDING INSURER and ASSUMING INSURER through their duly authorized officers.

5 Guaranteed Asset Protection Waivers between SYMI INSURANCE COMPANY, LTD. and SCHEDULE PAGE Including: Program Parameters 1. Financial Administration by: Janus Administrative Solutions, Inc. 2. Agent Servicing by:. 3. Reinsurance Provided by: Symi Insurance Company, Ltd. Notes (please give details): _ Note: The agreement provides for Standard Processing and Reporting. Additional processing or reporting or special cases will be charged additional fees, as negotiated. Please attach a copy of the rates in effect at the dealership. If the rates change, Agent should send a copy of the new rates and the effective date of the new rates to Symi Insurance Company, Ltd. at 7697 West Parkside Drive, Youngstown, Ohio SYMI INSURANCE COMPANY, LTD. Attest: By: Its: President Name: Attest: By: Its: President

6 APPENDIX A Producers To be updated as additional Producers are acquired. DEALER