CASUALTY SEMI-AUTOMATIC FACULTATIVE EXCESS OF LOSS
EX-10.4 5 w68436exv10w4.txt CASUALTY SEMI-AUTOMATIC FACULTATIVE EXCESS OF LOSS EXHIBIT 10.4 [WILLIS LOGO] REINSURANCE BINDER PER YOUR AUTHORIZATION, PLEASE BIND REINSURANCE AS FOLLOWS: DATE: April 5, 2004 REINSURED: Philadelphia Consolidated Holding Corp. Philadelphia Insurance Company NAME INSURED: Community Association Risk Purchasing Group Program LOCATION: Bala Cynwyd, Pennsylvania POLICY NUMBER: TBD POLICY PERIOD: April 1, 2004 - April 1, 2005 REINSURANCE PERIOD: April 1, 2004 - April 1, 2005 TYPE OF INSURANCE: UMBRELLA LIABILITY COMPANY POLICY LIMITS: $15,000,000 Each Occurrence / Aggregate Where Applicable Excess Scheduled Underlying COMPANY RETENTION NET &/OR TREATY: LAYER A) 100% of First $10,000,000 / $11,000,000 (See Note) Each Occurrence / Aggregate Where Applicable Excess Scheduled Underlying LAYER B) 0% of $4,000,000 / $5,000,000 (See Note) Each Occurrence / Aggregate Where Applicable Excess of $10,000,000 / $11,000,000 Each Occurrence / Aggregate Excess Scheduled Underlying REINSURANCE LIMIT(S): LAYER B) 100% of $4,000,000 / $5,000,000 (See Note) Each Occurrence / Aggregate Where Applicable Excess of $10,000,000 / $11,000,000 Each Occurrence / Aggregate Excess Scheduled Underlying NOTE: For consideration of the program limits covered hereunder, the following Reinsurance Limits apply: (a) As respects for which the Company issues both the Primary and Umbrella Policy, The Company limits shall be $10,000,000 and the Reinsurance hereunder will be $5,000,000. (b) As respects for which the Company issues only the Umbrella Policy, The Company limits shall be $11,000,000 and the Reinsurance hereunder will be $4,000,000. ESTIMATED REINSURANCE PREMIUM: $2,462,751 Gross / $1,785,494 Net For consideration of the program covered hereunder, the Company shall pay the Reinsurer the following Reinsurance Premium: Condo (a) $4.00 Gross / $2.90 Net For $5,000,000 Excess $10,000,000 (b) $3.20 Gross / $2.32 Net For $4,000,000 Excess $11,000,000 Number of Condo Units estimated at 504,295. Single Family Dwelling (SFD) (a) $2.00 Gross / $1.45 Net For $5,000,000 Excess $10,000,000 (b) $1.60 Gross / $1.16 Net For $4,000,000 Excess $11,000,000 Number of Single Family Dwelling Units estimated at 457,333. REINSURANCE PLACED WITH:
BASIS OF ACCEPTANCE: Follow Form Excess CEDE COMMISSION: 27.5% ORIGINAL CANCELLATION CLAUSE: In the event that any policy reinsured under the Program is canceled or terminated, the reinsurance provided hereunder shall terminate automatically with the same effective date and the Company shall be entitled to a return of premium in accordance with the terms of the policy reinsured. In the event of non-payment of premium, the Reinsurer may cancel this Binder by giving prior written notice of not less than 15 days. Any such cancellation shall be effective at midnight of the last day of the notice period. COMPANY POLICY TERMS/ EXTENSIONS/EXCLUSIONS: Follow Form Company's Policy ADDITIONAL REINSURANCE TERMS AND CONDITIONS: Excludes Asbestos, Pollution, Mold & Lead ACCOUNTS: The Reinsurer shall be provided with a monthly bordereau no later than 30 days after the end of each month. Reinsurance premium due to the Reinsurer shall be payable by the Company within 30 days after the end of each month subject to receipt and agreement of the bordereau. UNDERLYING INSURANCE: General Liability $1,000,000 Each Occurrence $2,000,000 General Aggregate $2,000,000 Products/Completed Operations Aggregate Automobile Liability $1,000,000 Each Accident BI & PD Combined Single Limit Employers Liability $100,000 Each Employee $500,000 Each Disease $100,000 Policy Limit Directors & Officers $1,000,000 Per Loss $1,000,000 Aggregate Employee Benefits Liability $1,000,000 Each Employee $1,000,000 Aggregate All other information as per our electronic submission of February 3, 2004. Please confirm your agreement to bind coverage by return and advise assigned reference number as soon as possible. Regards, Rich Macrane Vice President / Casualty Manager Willis Re, Inc.
