# GENERAL CONDITIONS

1. The Reinsurer agrees to indemnify the Company against losses or damage, which the Company is legally obligated to pay with respect to which insurance is affected during the term of such policy or for the policy renewed, subject to the limitations and exclusions shown in the declarations. The Reinsurer shall not indemnify the Company for liability under any non-cancelled policy provisions, including but not limited to punitive, exemplary, consequential or compensatory damages resulting from a claim of an insured or anyone against the Company, punitive damages, or any other damages that are not covered by the policy, and the Reinsurer shall not be liable for the payment of any claims made thereon, provided that such claims shall be brought upon the Company until accepted thereby. Not be contained herein, the Reinsurer shall not be liable for any claims made against the Company arising out of the direct invasion or any third parties of any person or property in the coverage of insurance.

2. The Company agrees to give notice promptly to the Reinsurer within twenty-four hours of the occurrence of any loss hereunder. In the event of any loss, the Reinsurer shall be entitled to inspect all documents and records of the Company relating to the loss. The Reinsurer shall have the right to adjust the claim and to make payments thereon. The Reinsurer may, at its option, assume the defense of the claim and may employ counsel of its own selection. The Reinsurer shall be entitled to recover from the Company the amount of any additional expense incurred by the Reinsurer in connection with the defense of the claim.

3. The Reinsurer shall be entitled to assume the defense of any claim, suit, action, or proceeding involving the Reinsurance, and the Company shall cooperate fully with the Reinsurer in the defense thereof. The Reinsurer shall be entitled to settle any claim, suit, action, or proceeding involving the Reinsurance, and the Company shall cooperate fully with the Reinsurer in the settlement thereof. The Reinsurer shall be entitled to make any compromise or settlement of any claim, suit, action, or proceeding involving the Reinsurance, and the Company shall cooperate fully with the Reinsurer in the making thereof. The Reinsurer shall be entitled to make any compromise or settlement of any claim, suit, action, or proceeding involving the Reinsurance, and the Company shall cooperate fully with the Reinsurer in the making thereof.

4. The Reinsurer shall be entitled to assume the defense of any claim, suit, action, or proceeding involving the Reinsurance, and the Company shall cooperate fully with the Reinsurer in the defense thereof. The Reinsurer shall be entitled to settle any claim, suit, action, or proceeding involving the Reinsurance, and the Company shall cooperate fully with the Reinsurer in the settlement thereof. The Reinsurer shall be entitled to make any compromise or settlement of any claim, suit, action, or proceeding involving the Reinsurance, and the Company shall cooperate fully with the Reinsurer in the making thereof.

5. The Reinsurer shall be entitled to assume the defense of any claim, suit, action, or proceeding involving the Reinsurance, and the Company shall cooperate fully with the Reinsurer in the defense thereof. The Reinsurer shall be entitled to settle any claim, suit, action, or proceeding involving the Reinsurance, and the Company shall cooperate fully with the Reinsurer in the settlement thereof. The Reinsurer shall be entitled to make any compromise or settlement of any claim, suit, action, or proceeding involving the Reinsurance, and the Company shall cooperate fully with the Reinsurer in the making thereof.

6. The Reinsurer shall be entitled to assume the defense of any claim, suit, action, or proceeding involving the Reinsurance, and the Company shall cooperate fully with the Reinsurer in the defense thereof. The Reinsurer shall be entitled to settle any claim, suit, action, or proceeding involving the Reinsurance, and the Company shall cooperate fully with the Reinsurer in the settlement thereof. The Reinsurer shall be entitled to make any compromise or settlement of any claim, suit, action, or proceeding involving the Reinsurance, and the Company shall cooperate fully with the Reinsurer in the making thereof.

7. The Reinsurer shall be entitled to assume the defense of any claim, suit, action, or proceeding involving the Reinsurance, and the Company shall cooperate fully with the Reinsurer in the defense thereof. The Reinsurer shall be entitled to settle any claim, suit, action, or proceeding involving the Reinsurance, and the Company shall cooperate fully with the Reinsurer in the settlement thereof. The Reinsurer shall be entitled to make any compromise or settlement of any claim, suit, action, or proceeding involving the Reinsurance, and the Company shall cooperate fully with the Reinsurer in the making thereof.

8. The Reinsurer shall be entitled to assume the defense of any claim, suit, action, or proceeding involving the Reinsurance, and the Company shall cooperate fully with the Reinsurer in the defense thereof. The Reinsurer shall be entitled to settle any claim, suit, action, or proceeding involving the Reinsurance, and the Company shall cooperate fully with the Reinsurer in the settlement thereof. The Reinsurer shall be entitled to make any compromise or settlement of any claim, suit, action, or proceeding involving the Reinsurance, and the Company shall cooperate fully with the Reinsurer in the making thereof.

9. The Reinsurer shall be entitled to assume the defense of any claim, suit, action, or proceeding involving the Reinsurance, and the Company shall cooperate fully with the Reinsurer in the defense thereof. The Reinsurer shall be entitled to settle any claim, suit, action, or proceeding involving the Reinsurance, and the Company shall cooperate fully with the Reinsurer in the settlement thereof. The Reinsurer shall be entitled to make any compromise or settlement of any claim, suit, action, or proceeding involving the Reinsurance, and the Company shall cooperate fully with the Reinsurer in the making thereof.

10. This Certificate may be cancelled by either party giving notice in writing to the other party. If cancelled by the Reinsurer, adjustment of premium shall be on the pro rata basis. If cancelled by the Company, without simultaneous cancellation of the certificate of the Reinsurer, the Company shall be liable for the full amount of the premium for the period remaining on the certificate. The Company shall reimburse the Reinsurer for the amount of the premium for the period remaining on the certificate. The Company shall also be liable for the full amount of the premium for the period remaining on the certificate. The Company shall also be liable for the full amount of the premium for the period remaining on the certificate.

IN WITNESS WHEREOF the AMERICAN REINSURANCE COMPANY has caused this Certificate to be signed by its Vice President and Secretary, but same shall not be binding upon the Reinsurer unless countersigned by an authorized representative of the Reinsurer.