- 35 -
its liability under the Shippers Interest contract to OPL as
reinsurer. Under the terms of the agreement, NUF was required to
remit to OPL 100 percent of the gross amounts received from
petitioner under the Shippers Interest contract less: (a) A
commission to NUF of 1.18 percent of the gross premiums not to
exceed $1 million; (b) an allowance of 3.1 percent of the gross
premiums written to cover NUF's premium tax and board and bureau
charges; and (c) 1 percent of the gross premiums for the purpose
of paying Federal excise taxes. In addition, under article IX of
the agreement, NUF held as security an amount equal to the first
2 months of gross premiums written less commission, taxes, board
and bureau charges, losses paid, loss expenses paid, and Federal
excise taxes, if any.
The agreement became effective on January 1, 1984, and
remained in effect until canceled or terminated. The termination
provision of the agreement stated:
Neither the Company nor Reinsurer may terminate this
Agreement while the Policy listed in Article I Item B
is in force; however, if the Policy listed in Article I
Item B[21] is in fact terminated then in that event and
that event only this Agreement shall be terminated
simultaneously therewith. * * *
Under this provision, neither NUF nor OPL could cancel the
agreement while the Shippers Interest contract remained in force.
21Article I Item B lists only the Shippers Interest contract
between petitioner and NUF.
Page: Previous 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 NextLast modified: May 25, 2011