AMERINST INSURANCE GROUP LTD FILES (8-K) Disclosing Entry into a Material Definitive Agreement, Termination of a Material Definitive Agreement, Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement, Financial Statements and Exhibits
Item 1.01 Entry into a Material Definitive Agreement
through
AmerInst that is a registered insurer in
Ltd.
"Reinsurance Agreement") with
Fire Insurance Company
Insurance Company
"C&F"). Under the Reinsurance Agreement, C&F agreed to cede, and
agreed to accept as reinsurance, a 50% quota share of C&F's liability under
insurance written by
Services, Limited
subsequent amendment to the Reinsurance Agreement provided for a 90% quota share
of C&F's liability under insurance written by Protexure under certain
circumstances.
The insurance written by Protexure is pursuant to an Agency Agreement (the
"Agency Agreement"), dated
Under the Agency Agreement, C&F appointed Protexure as its exclusive agent for
the purposes of soliciting, underwriting, quoting, binding, issuing, cancelling,
non-renewing and endorsing accountants' professional liability and lawyers'
professional liability insurance coverage in all 50 states of
and the
four years with automatic one-year renewals thereafter. The Agency Agreement
automatically renewed on
Upon mutual agreement, (1)
Reinsurance Agreement, and (2) Protexure and C&F have agreed to continue the
Agency Agreement until no later than
To effectuate the commutation of the Reinsurance Agreement,
into a Commutation Agreement and Release ("Commutation Agreement") with C&F on
Agreement settles and commutes all respective obligations and liabilities under
the Reinsurance Agreement. In exchange for the release of past and future
reinsurance claims ceded by C&F and assumed by
Agreement provides for the payment to C&F of
The Payment Amount will be paid out of funds and securities that have been held
in trust in accordance with the Reinsurance Agreement.
pay C&F any shortfall.
To effectuate the termination of the Agency Agreement on
Protexure and C&F entered into a First Amendment to Agency Agreement (the
"Agency Agreement Amendment") on
Agreement and provided for the termination of the Agency Agreement, effective
permitted to issue new and renewal professional liability policies on C&F's
paper with effective dates no later than
with modified guidelines.
The descriptions of the Commutation Agreement and the Agency Agreement Amendment
set forth in this Item 1.01 are qualified in their entirety by reference to the
full text of the Commutation Agreement and the Agency Agreement Amendment,
copies of which are filed as Exhibits 10.1 and 10.2 to this Current Report on
Form 8-K and which are incorporated herein by reference.
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Item 1.02 Termination of Material Definitive Agreement
The Commutation Agreement terminated the Reinsurance Agreement, effective
effective
incorporated by reference herein.
Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial
Obligation or an Obligation under an Off-Balance Sheet Arrangement
The disclosure set forth under Item 1.01 is incorporated by reference herein.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits Exhibit No. Description 10.1 Commutation Agreement and Release, dated as ofOctober 12, 2021 , by and amongAMIC Ltd. ,The North River Insurance Company ,United States Fire Insurance Company ,Crum & Forster Indemnity Company ,Crum and Forster Insurance Company , andCrum & Forster Specialty Insurance Company 10.2 First Amendment to Agency Agreement, dated as ofOctober 12, 2021 , to Agency Agreement, dated as ofSeptember 25, 2009 , by and among Protexure,The North River Insurance Company ,United States Fire Insurance Company ,Crum & Forster Indemnity Company ,Crum and Forster Insurance Company , andCrum & Forster Specialty Insurance Company 104 Cover Page Interactive Data File (embedded within Inline XBRL document).
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