<PAGE>
- --------------------------------------------------------------------------------
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-------------------
FORM 10-K
(Mark One)
(X) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (FEE REQUIRED).
For the fiscal year ended December 31, 1996
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (NO FEE REQUIRED).
Commission file number 0-28214
------------------------------
MEDICAL DEFENSE HOLDING CO.
(Exact name of registrant as specified in its charter)
Missouri 43-1696112
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
1311 East Woodhurst, Springfield, Missouri 65804
(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code): (417) 887-3120
------------------------------------------
Securities registered pursuant to Section 12(b) of the Act: None.
Securities registered pursuant to Section 12(g) of the Act: None.
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
X Yes No
----------------- -----------------
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K ((S)229.405 of this chapter) is not contained herein, and
will not be contained, to the best of registrant's knowledge, in definitive
proxy or information statements incorporated by reference in Part III of this
Form 10-K or any amendment to this Form 10-K. (X)
The aggregate market value of the voting stock held by non-affiliates of
the Registrant is undeterminable since there is no market at this time for the
stock. See Part II Item 5, Market for the Registrant's Common Stock and Related
Stockholder Matters.
As of March 17, 1997 there were 9,202,038 shares outstanding of the
Registrant's Convertible Preferred Stock, $1.00 par value. In addition, there
were 999,998 shares of the Registrant's Class A Common Stock, $.50 par value
outstanding and there were 33,230 shares outstanding of the Registrant's Class B
Common Stock, $.50 par value.
DOCUMENTS INCORPORATED BY REFERENCE: None
- --------------------------------------------------------------------------------
<PAGE>
MEDICAL DEFENSE HOLDING CO.
Table of Contents
<TABLE>
<CAPTION>
Item Page
- ---- ----
<S> <C>
PART I
Item 1. Business..................................................... 1
Item 2. Properties................................................... 8
Item 3. Legal Proceedings............................................ 8
Item 4. Submission of Matters to a Vote of Security Holders.......... 8
PART II
Item 5. Market for the Registrant's Common Stock and Related
Stockholder Matters......................................... 8
Item 6. Selected Financial Data...................................... 9
Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations......................... 10
Item 8. Financial Statements and Supplementary Data.................. 14
Item 9. Changes in and Disagreements with Accountants on Accounting
and Disclosures............................................. 36
PART III
Item 10. Directors and Executive Officers of the Registrant........... 36
Item 11. Executive Compensation....................................... 38
Item 12. Security Ownership of Certain Beneficial Owners and
Management.................................................. 39
Item 13. Certain Relationships and Related Transactions............... 40
PART IV
Item 14. Exhibits, Financial Statement Schedules, and Reports on
Form 8-K.................................................... 40
Signatures.............................................................. 42
</TABLE>
<PAGE>
PART I
Item 1. Business
-----------------
BUSINESS OF THE HOLDING COMPANY
Medical Defense Holding Co. (the "Company") was incorporated in Missouri on
November 28, 1994. The Company is the parent holding company of Medical Defense
Associates (the "MDA"), a Missouri stock casualty insurance company. MDA owns
all of the issued and outstanding stock of Medical Defense Services Corp.
("MDS"), a Missouri corporation. MDS, in turn, owns all of the issued and
outstanding stock of Medical Defense Insurance Company ("MDIC"), a Missouri
stock casualty insurance company. MDA and MDIC offer medical professional
liability insurance for physicians, surgeons, dentists and others engaged in the
delivery of health care services. The Company and its subsidiaries comprise an
insurance holding company system under Missouri law.
BUSINESS OF MEDICAL DEFENSE ASSOCIATES
Background
----------
MDA was formed in 1976 as an entity operating under Chapter 383 R.S.Mo. for
the purpose of providing medical malpractice insurance or indemnification upon
the assessment plan. On April 3, 1995, the members of MDA voted in favor of the
conversion of MDA to a stock insurance company operating under Chapter 379
R.S.Mo. The conversion was completed on June 26, 1995 and MDA became a wholly
owned subsidiary of the Company at that time. The Company issued approximately
12,000,000 shares of Preferred Stock to policyholders who were named insureds of
MDA under policies in force on April 4, 1994. Officers, directors or members of
management of the Company or its subsidiaries also purchased 999,992 shares of
Class A Common Stock for approximately $500,000.
Lines of Insurance
------------------
MDA currently writes medical malpractice insurance as its only line of
business. MDA insures physicians and surgeons with the degree of Doctor of
Medicine or Doctor of Osteopathy, dentists and oral surgeons and ancillary
health professionals. MDA has written only medical malpractice insurance since
its inception in 1976. MDA offered only an Occurrence Policy from its inception
through March 31, 1986. Excess coverage was offered from 1981 through 1985.
Effective April 1, 1986, new policyholders were offered a choice of a Claims
Made Policy or an Occurrence Policy. Effective July 1, 1986, MDA offered only
Claims Made Policies to new policyholders. Existing occurrence policyholders
were converted to Claims Made Policies as they renewed after January 1, 1987. At
this time, MDA only offers Claims Made Policies.
As of December 31, 1996, MDA had 1,459 policyholders including those with
corporate coverage. MDA writes limits ranging from $200,000 per occurrence and
$600,000 in the aggregate per year to $1,000,000 per occurrence and $3,000,000
in the aggregate per year. The policyholders represent a diverse range of
specialties and geographic locations within the State of Missouri.
General Aspects of MDA's Business
---------------------------------
UNDERWRITING
MDA exercises strict underwriting which is performed by an Underwriting
Committee of five (5) physicians licensed in the State of Missouri. The
Underwriting Committee is augmented by an experienced underwriting staff.
1
<PAGE>
CLAIMS
MDA's claims philosophy is to defend all non-meritorious claims. In
addition, MDA will not settle a claim without the prior consent of the insured.
In those claims in which the insured consents to settle and in which liability
exists, MDA moves promptly to settle the claim early in order to minimize
indemnity and loss adjustment expenses.
RESERVES FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES
MDA is required to maintain loss reserves for anticipated losses and loss
adjustment expenses. The loss reserves represent the estimated probable cost of
settling of losses under MDA's policies of insurance. The loss adjustment
expense reserves represent the estimated probable cost of investigating all
losses and when necessary defending lawsuits in connection therewith. The loss
reserves are estimated based upon individual loss data and historical loss data
and include amounts determined on the basis of individual and actuarially
determined estimates of future losses. Therefore, MDA's ultimate liability could
deviate from the amounts currently reflected in the loss reserves.
MDA's claims department continually monitors and reviews circumstances
related to potential or actual claims and the methods utilized for making
reserve estimates. The reasonableness of statutory loss reserves under the terms
of MDA's policies and agreements, and under the requirements of the insurance
laws of the State of Missouri is subject to statement of actuarial opinion
requirements by a qualified actuary. The Missouri Department of Insurance (the
"Department") reviews the loss reserves of MDA as a part of an insurance company
financial examination. The latest examination done by the Department was in
1996. Any adjustments to loss reserves are reflected in operations.
MDA's loss reserves are estimated by an actuary on the basis of statistical
information regarding MDA's historical development pattern, industry averages,
and indices. A medical professional liability insurance company must accumulate
substantial loss reserves because policies provide for payments of substantial
amounts in the future for claims that have occurred in prior contract periods.
These loss reserves are established as balance sheet liabilities representing
estimates of future amounts needed to pay claims and related expenses with
respect to insured events which have occurred, including events that have not
yet been reported.
MDA employs an independent actuary to make recommendations in the
establishment of its reserves. However, the quantification of reserves is
complex and imprecise as a result of the time it takes to settle claims, the
complex nature of damage claims and the evolving nature of claims and remedies
sought by plaintiffs. In determining reserve levels, actuaries necessarily rely
primarily on historical loss experience, adjusted for changing circumstances as
deemed appropriate. This reliance is based on the assumption that historical
loss experience provides a good indication of future loss experience despite
uncertainties in loss cost trends and delays in reporting and settling claims.
These uncertainties are increased by changes in normal inflation, changing
propensities of individuals to file claims, and new causes of action. Despite
these uncertainties in the determination of reserve levels, management believes
that the methods used by MDA to establish its reserves are reasonable and
appropriate.
As additional information becomes available and is reviewed, the estimates
reflected in earlier reserves may be revised resulting in either increases or
decreases to reserves, including reserves for insured events of prior years. Any
such increases could have an adverse effect on results for the period in which
adjustments are made. The uncertainties inherent in estimating ultimate losses
on the basis of past experience have grown significantly in recent years as a
result of judicial expansion of liability standards and expansive
interpretations of insurance contracts.
2
<PAGE>
Reconciliation of Loss Reserves
-------------------------------
The following table sets forth an analysis of loss reserve liabilities and
loss adjustment expenses for the Company on a consolidated basis and provides a
reconciliation of beginning and ending liability balances for the years ended
December 31, 1996, 1995, and 1994:
Reconciliation of Loss Reserves (gross of reinsurance)
(in thousands)
<TABLE>
<CAPTION>
1996 1995 1994
-------- --------- ---------
<S> <C> <C> <C>
Unpaid losses and loss adjustment expenses,
beginning of year........................................... $65,660 $65,803 $70,436
------- ------- -------
Losses and loss adjustment expenses incurred
related to:
Current year.............................................. 15,802 18,115 16,628
Prior years............................................... 4,145 (2,478) (4,124)
------- ------- -------
Total incurred............................................ 19,947 15,637 12,504
------- ------- -------
Losses and loss adjustment expenses payments,
excluding the change in outstanding claim
drafts, for claims incurred during:
Current year.............................................. 749 1,333 965
Prior years............................................... 21,653 14,447 16,172
------- ------- -------
Total paid................................................ 22,402 15,780 17,137
------- ------- -------
Unpaid losses and loss adjustment expenses,
end of year................................................. $63,205 $65,660 $65,803
======= ======= =======
</TABLE>
Loss Reserve Development Table
The following table sets forth the development of loss and loss adjustment
expense reserve liabilities of MDA for each of the years in the ten year period
prior to December 31, 1996. The top line of the table shows the estimated
liability for unpaid losses and loss adjustment expense recorded at the end of
each of the years indicated. These liabilities represent the estimated amount of
losses and loss adjustment expense reserves for claims arising in the current
year and all prior years that are unpaid as of the end of each year.
The "Cumulative Paid End of Year" portion of the table presents the
cumulative amounts paid with respect to the liability previously recorded as of
the end of each succeeding year. The portion of the table which shows the re-
estimated amount relating to the previously recorded liability is based upon
experience as of the end of each succeeding year. The estimate is either
increased or decreased as additional information about the frequency and
severity of claims for each individual year becomes available and is reviewed.
The section of the table entitled "Cumulative Redundancy (Deficiency)" is
based upon actual amounts recorded in MDA's financial records and represents the
aggregate change in the estimated loss and loss adjustment expenses incurred
over all prior years.
Information presented in the following table is cumulative and,
accordingly, each amount includes the effects of all changes in amounts for
prior years. For example, the amount of the increase related to losses settled
or provided for in 1996, but incurred in 1992, will be included in the
cumulative increase (decrease) in estimated losses and loss adjustment expenses
for all of the intervening years.
3
<PAGE>
Loss Reserve Development Table, continued
The most recent seven years, 1990 through 1996, are presented on a direct
basis consistent with Statement of Financial Accounting Standards #113. All
years prior to 1990 are presented on a net of reinsurance basis as it was not
practical to generate the table on a direct basis for those years due to
differences in financial reporting for periods prior to 1990.
Medical Defense Associates
Loss Reserve Development Table*
(in thousands)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Net Net Net Direct Direct Direct Direct Direct Direct Direct
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
-------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Reserve for unpaid....... $ 50,129 $42,312 $49,965 $66,984 $79,456 $76,515 $70,223 $70,326 $65,785 $65,606 $62,970
Cumulative Paid
End of Year:
1........................ 9,818 13,630 6,240 12,607 17,210 19,070 11,682 18,528 14,779 21,967 --
2........................ 22,677 19,111 17,291 26,719 32,208 28,142 29,017 31,097 31,823
3........................ 34,407 28,899 25,912 37,626 38,022 41,127 39,101 43,342
4........................ 42,941 33,769 30,907 40,093 47,882 49,277 46,472
5........................ 47,235 37,323 32,380 43,907 52,389 54,653
6........................ 49,678 38,456 34,816 47,579 57,189
7........................ 50,963 40,484 38,257 51,077
8........................ 52,637 43,050 41,415
9........................ 55,090 46,160
10....................... 58,178
Re-estimated Liability:
1........................ 47,034 52,721 53,801 66,511 72,994 71,098 66,291 68,666 63,695 70,101 --
2........................ 58,234 55,650 55,584 61,105 69,179 67,965 64,076 66,191 66,385
3........................ 66,134 56,810 51,579 59,313 66,734 66,781 62,601 67,699
4........................ 66,831 54,105 49,949 56,606 66,477 66,267 62,990
5........................ 64,665 52,481 45,762 56,715 66,428 67,541
6........................ 62,674 49,420 46,072 57,276 67,148
7........................ 60,225 49,928 46,544 58,003
8........................ 60,662 50,179 47,441
9........................ 61,055 51,075
10....................... 62,028
Cumulative Redundancy
(Deficiency)........... (11,899) (8,763) 2,524 8,981 12,308 8,974 7,233 2,627 (600) (4,495) --
</TABLE>
NOTE: The figures presented on the Loss Reserve Development Table for years
1990 through 1996 are gross of the effects of reinsurance in order to be
consistent with figures presented in those years' financial statements. However,
the figures for years 1986 through 1989 have not been restated and are net of
the effects of reinsurance. Restatement of the 1986 through 1989 amounts is not
practical because the information necessary is not contained in MDA's statutory
Annual Statement or records.
* Excludes MDIC, as MDIC's share of loss and loss adjustment expense
reserves compared to total reserves is less than one (1) percent.
4
<PAGE>
Discounting of Loss Reserves
For statutory accounting purposes, for accident years prior to 1995, MDA
discounted its medical professional liability loss and loss adjustment expense
reserves on a non-tabular basis. During 1995, the Missouri Department of
Insurance instituted, for all Missouri domiciled property and casualty
companies, a policy which does not permit non-tabular discounting of unpaid
losses and loss adjustment expenses. In conjunction with this new policy, MDA
reached agreement with the Missouri Department of Insurance to eliminate non-
tabular reserve discounting in MDA's statutory financial statements over a five-
year period. Under this agreement all unpaid losses and loss adjustment expenses
related to accident years 1995 and subsequent will be reflected gross of
discounting. In addition, the total non-tabular discount of $3,484,000 reflected
in MDA's 1994 year-end reserves will be phased-out over five years by a 20%
adjustment per year directly to surplus as regards policyholders. The effect of
this phase-out adjustment on MDA's statutory balance sheet at year end 1996 was
to increase total reserves for loss and loss adjustment expenses by $1,394,000,
with a corresponding decrease to surplus as regards policyholders. Discount
factors and the discount taken for the five-year period ending December 31, 1995
were as follows:
<TABLE>
<CAPTION>
Year Discount Factor Discount Taken
------ --------------- --------------
<S> <C> <C>
1992 5.0% $5,975,000
1993 3.0% $3,660,000
1994 3.0% $3,484,000
1995 Based on statutory agreement $2,787,000
noted above
1996 Based on statutory agreement $2,090,000
noted above
</TABLE>
MDIC's loss and loss adjustment expense reserves are not discounted for
statutory accounting purposes.
REINSURANCE
MDA reinsured all Occurrence Policies issued after October 31, 1980 and all
Claims-Made Policies issued before November 1, 1987. The Company ceased
reinsuring Claims-Made Policies as of November 1, 1987. All claims related to
Occurrence Policies issued after October 31, 1980 and Claims-Made Policies
before November 1, 1987 are still reinsured.
A reserve for estimated retrospective premium due reinsurers has been
established for the excess of the anticipated reinsurance premium payable over
the amount paid to date for reinsurance treaty years 1980 through 1987. The
ultimate reinsurance premium to be paid is based on the ultimate loss
developments for claims arising during those treaty years. Changes in the
estimated amount due reinsurers are reflected in current operations. The
ultimate amount due reinsurers is estimated by MDA's independent actuary.
INVESTMENT PROGRAM
The goal of the investment portfolio is to achieve maximum income
consistent with capital preservation. MDA employs Scudder Insurance Asset
Management ("SIAM") headquartered in Chicago, Illinois, to manage the Company's
investment funds. SIAM operates under guidelines which are adopted by the Board
of Directors. These guidelines are reviewed periodically to ensure that they are
compatible with MDA's philosophy and needs. Current guidelines for SIAM are:
1) All investments must meet the criteria established for
property/casualty insurance companies by (S)379.080 R.S.Mo.;
2) There shall be no minimum or maximum limit placed on investments
directly guaranteed by the full faith and credit of the United
States Government, such as U.S. Treasuries and Government
National Mortgage Association Bonds;
5
<PAGE>
INVESTMENT PROGRAM, continued
3) Investments in agencies of the U.S. Government, which are
implicitly guaranteed by the United States Government, such as
Federal National Mortgage Association and Federal Home Loan
Mortgage Association Bonds, shall be limited to no more than 50%
of the total portfolio. There shall be no minimum limitation;
4) Investments in specific securities, other than U.S. Treasuries,
shall be limited to no more than 2% of MDA's total portfolio,
without regard to the new investment. In addition, corporate
bonds shall be limited to no more than $1,000,000 par in any one
position, and a minimum quality rating for corporate bonds shall
continue to be AA or better. All corporate bonds cannot exceed
30% of the portfolio;
5) Investments in federally tax-exempt securities shall be permitted
as deemed appropriate from time to time, provided that tax-exempt
securities in the aggregate shall not exceed 15% of the total
portfolio. The acceptable quality rating for tax-exempt
securities shall be AA or better;
6) All investments must receive the National Association of
Insurance Commissioner's highest rating; and
7) Investments in corporate bonds and federally tax-exempt
securities combined may not exceed 30% of the total portfolio.
BUSINESS STRATEGY
MDA's primary mission is to provide professional liability insurance to
physicians, surgeons, dentists and other licensed health care professionals at
competitive prices consistent with sound actuarial principles. MDA's secondary
mission is to offer other insurance and financial services and products that
support the Company's primary mission.
MARKET CONDITION AND COMPETITION
The current status of the professional liability market in Missouri is one
of intense competition. The business of medical malpractice is cyclical in
nature and is impacted by legislative changes, judicial interpretations, market
competition, inflation and other circumstances. There are several major
competitors and with the "soft" portion of the insurance cycle in full
operation, the market is rife with price cutting and discounting. MDA has not
responded in kind but has rather chosen to maintain its actuarially sound
pricing policy. Due to changes in the health care industry, the recent trend has
been for physicians, surgeons and dentists, who have been the company's primary
clients, to become employees of hospitals or other health care networks and
cease to obtain their own medical professional liability insurance. Due to this
change, the Company's market share has continued to decline during the past two
years. However, the Company continues to intensify its services to policyholders
in an attempt to maintain or increase market share.
MDA has no independent agents, and relies on its employees for the sale of
medical professional liability insurance.
6
<PAGE>
Other Aspects of MDA's Business
-------------------------------
EMPLOYEES
MDA has one employee. MDS, a wholly-owned subsidiary of MDA, performs
management services for MDA, MDIC, and the Company. See following section on
Business of MDS for further discussion of employees. The Company and MDIC at
this time have no employees.
GOVERNMENT REGULATION
The business and activities of MDA are generally subject to federal and
state laws and regulations which affect the conduct of its business. As an
insurance company, MDA is subject to regulation and supervision by the
Department. The Department has statutory authority and administrative power to
regulate such matters as licensing, investments, trade practices, loss reserves
and capital maintenance. MDA is required to file financial and other reports
with the Department and the National Association of Insurance Commissioners (the
"NAIC") on a quarterly and annual basis, and the operations and accounts of MDA
are subject to periodic financial and market conduct examination by the
Department. The Department conducted a routine periodic financial examination of
MDA and its subsidiaries during 1996. The examination covered the two years
ended December 31, 1995. The examination commenced on September 9, 1996 and the
final report became available to the public on March 21, 1997. The report
reflected no change to MDA's statutory surplus for the periods under
examination.
In recent years, the NAIC has promulgated new reporting requirements
relating to property and casualty insurance companies regarding risk based
capital ("RBC"). Under these new reporting rules, property and casualty
insurance companies are categorized according to the extent to which they meet
RBC thresholds, with increasing degrees of regulatory scrutiny or intervention
appropriate for companies in categories of less RBC compliance. The RBC
requirements were adopted in Missouri in 1996 for property and casualty
insurers. MDA and MDIC both significantly exceed the RBC thresholds, as
promulgated by the NAIC and adopted in Missouri. Management believes that the
RBC thresholds will not have any significant regulatory effect on MDA or MDIC.
BUSINESS OF MEDICAL DEFENSE SERVICES CORP.
MDS, a wholly-owned subsidiary of MDA, was formed in 1982 as a corporation
under the General Business and Corporation Law of Missouri, Chapter 351 R.S.Mo.
MDS performs management services for MDA and MDIC under the terms of management
contracts. As of December 31, 1996, MDS had 31 employees. The employees of MDS
are not represented by any union or collective bargaining organizations and MDS
believes its employee relations are good. Under the current management contract,
MDS provides services to MDA and MDIC at cost plus 10%. MDA and MDIC each pay
their share of those costs, currently at 95% and 5% respectively. All inter-
company balances are eliminated in the consolidated financial statements of the
Company.
BUSINESS OF MEDICAL DEFENSE INSURANCE COMPANY
MDIC, a wholly-owned subsidiary of MDS, was organized in 1982 as a Missouri
stock casualty insurance company under Chapter 379 R.S.Mo. MDIC was formed to
issue non-assessable medical malpractice insurance policies to persons or
entities who could not be insured by MDA under (S)383.010 R.S.Mo. MDIC is
licensed to operate in Missouri and in Kansas. From its inception in 1982 until
September 1, 1988, MDIC only wrote business in Kansas. In September of 1988,
MDIC voluntarily ceased writing business in Kansas. In June of 1994, MDIC again
began to write business in Kansas. For the year ended December 31, 1996, MDIC
had premiums written of less than $100,000 and fewer than twenty policyholders.
MDIC does not have any employees, and all persons conducting MDIC's
business are employees of MDS. See the paragraph above regarding Business of
MDS.
7
<PAGE>
Item 2. Properties
-------------------
MDS currently owns the executive offices used by the Company, MDA, MDS and
MDIC. The executive offices are in Springfield, Missouri, and consist of
approximately 16,000 square feet. Management believes such facility is adequate
to support its business plans, both now and in the foreseeable future.
Item 3. Legal Proceedings
--------------------------
While the Company and its subsidiaries are routinely involved in defending
claims against its insureds, none of these entities were defendants in material
legal or regulatory actions as of December 31, 1996.
Item 4. Submission of Matters to a Vote of Security Holders
------------------------------------------------------------
No matters were submitted to a vote of the shareholders of the Company
during the fourth quarter of the year ended December 31, 1996.
PART II
Item 5. Market for the Registrant's Common Equity and Related Stockholder
--------------------------------------------------------------------------
Matters
-------
MARKET
None of the Preferred Stock, the Class A Common Stock or the Class B Common
Stock are listed on any securities exchange or with any automated quotation
system, such as NASDAQ. No brokers or dealers serve as market makers for any
securities of the Company.
HOLDERS OF RECORD
As of March 17, 1997, there were approximately one thousand three hundred
ninety (1,390) holders of Preferred Stock, ten (10) holders of Class A Common
Stock and two (2) holders of Class B Common Stock.
DIVIDENDS
The Company did not pay or declare dividends during 1996. Pursuant to its
Articles of Incorporation, the Company is prohibited from paying any dividends
on its Class A Common Stock or Class B Common Stock while any Company Preferred
Stock is outstanding. The Company Preferred Stock is redeemable, at the
Company's option after three years from the date of conversion. Holders of
Preferred Stock may convert to Class B Common Stock, at their option, at any
time prior to redemption.
8
<PAGE>
Item 6. Selected Financial Data
--------------------------------
MEDICAL DEFENSE HOLDING CO. AND SUBSIDIARIES
The following Selected Consolidated Financial Data is prepared in
accordance with generally accepted accounting principles. The Company acquired
MDA on June 26, 1995, and the accompanying data which pertains to preacquisition
periods have been prepared as if the companies were combined throughout those
periods. This data should be read in conjunction with the Consolidated Financial
Statements and accompanying notes included elsewhere herein.
<TABLE>
<CAPTION>
Year Ended December 31,
------------------------------------------------
<S> <C> <C> <C> <C> <C>
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
(in thousands, except per share data)
Statement of Operations Data:
Net premiums written................... $12,521 $ 13,960 $ 14,257 $ 15,697 $ 14,839
======= ======== ======== ======== ========
Net premiums earned.................... 13,200 15,183 13,508 15,654 14,663
Investment income...................... 5,584 5,810 5,583 5,850 6,535
Net realized capital gains and other 95 219 247 2,110 1,407
income................................ ------- -------- -------- -------- --------
Total revenues....................... 18,879 21,212 19,338 23,614 22,605
------- -------- -------- -------- --------
Losses and loss adjustment expenses.... 20,379 16,159 14,727 12,475 12,862
Other operating expenses............... 3,206 2,989 3,128 2,255 2,078
------- -------- -------- -------- --------
Total expenses....................... 23,585 19,148 17,855 14,730 14,940
------- -------- -------- -------- --------
Income (Loss) before income taxes...... (4,706) 2,065 1,482 8,884 7,665
Income tax expense...................... 795 248 586 2,662 1,863
------- -------- -------- -------- --------
Net income (loss).................... $(5,501) $ 1,816 $ 896 $ 6,222 $ 5,802
======= ======== ======== ======== ========
Per common share: (1)
Earnings............................... $ (0.23) $ 0.05 n/a n/a n/a
======= ======== ======== ======== ========
Balance Sheet Data (at year end):
Investments............................ $83,299 $ 91,748 $ 78,371 $ 90,673 $ 82,282
Total Assets........................... 96,778 108,199 102,301 110,008 105,624
Unpaid losses and loss adjustment
expenses.............................. 63,205 65,660 65,803 70,436 71,213
Unearned premiums...................... 7,572 8,055 9,210 8,457 8,491
Stockholders' equity................... 21,835 29,557 22,932 27,090 21,466
</TABLE>
(1) For 1995 earnings per common share are reflected for earnings subsequent to
June 26, 1995, which is the date that Medical Defense Holding Co. completed its
acquisition of Medical Defense Associates and its subsidiaries. For years prior
to 1995 no earnings per share data is presented since all earnings are related
to Medical Defense Associates preacquisition activities and, therefore, are not
considered earnings per common share of Medical Defense Holding Co.'s
stockholders.
9
<PAGE>
Item 7. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Management's discussion and analysis of financial condition and results of
operations is intended to provide a review of significant factors affecting the
financial condition and results of operations of Medical Defense Holding Co.
(the "Company") and its subsidiaries as of December 31, 1996 and 1995 and for
each of the three years presented elsewhere herein. These financial statements
give retroactive effect to the acquisition of MDA and its subsidiaries by the
Company on June 26, 1995. The following discussion should be read in conjunction
with the consolidated financial statements and the related notes thereto of the
Company which appear elsewhere herein.
General
The Company is a Missouri general business corporation formed for the
purpose of facilitating the conversion of MDA from a mutual association to a
stock insurance company. On June 26, 1995, the conversion was completed with the
exchange of the policyholders' rights in MDA, the mutual insurance association,
for shares of convertible Preferred Stock in the Company, the parent holding
company. The Company owns one hundred percent (100%) of the outstanding shares
of MDA.
The accompanying consolidated financial statements and related discussion
include the accounts of the Company and its wholly-owned insurance subsidiary,
MDA, and have been consolidated with the Company in a manner similar to a
pooling of interests to reflect the conversion of MDA to a wholly-owned
subsidiary of the Company. Cash flow within the Company consists of investment
income and operating expenses. The Company does not have any significant revenue
producing operations of its own other than through its ownership of MDA. MDA is
licensed in Missouri to write medical professional liability insurance and MDA
is one of the leading writers of medical professional liability insurance in the
state of Missouri. Also included in the accompanying consolidated financial
statements are MDA's wholly-owned subsidiaries, Medical Defense Services Corp.
("MDS") and Medical Defense Insurance Company ("MDIC"). MDS is a wholly-owned
subsidiary of MDA and provides management services primarily to MDA. MDIC is a
wholly-owned subsidiary of MDS and is a stock insurance company organized under
Chapter 379 RSMo for the purpose of providing protection against loss from
medical professional liability claims. During the past 12 months, MDIC has
written a small amount of premium, less than $100,000, entirely in the state of
Kansas.
The professional medical liability market in Missouri continues to be one
of intense competition. There are several major competitors and with the "soft"
portion of the insurance cycle continuing, the market is abundant with price
cutting and discounting. The Company has refused to respond in kind but rather
has chosen to maintain its actuarially sound pricing structure.
Results of Operations
The Company recorded an 11% or $2,332,960 decrease in total revenues during
1996 as compared to 1995. This decrease was primarily the result of a reduction
in premium income of approximately $1,983,000, a decline in investment income of
approximately $226,000 and, a decrease in realized investment gains of $123,697.
The decline in premium income was primarily the result of an approximate 9%
decline in MDA's total policyholders and occurred despite a 14% rate increase
which was effective January 1, 1996 on all of MDA's new and renewal business.
The decrease in the Company's investment income was primarily the result of a
decline in invested assets during 1996 as compared to 1995. This decline in
invested assets, which was approximately $8,450,000 at December 31, 1996
compared to the previous year-end, was the result of an increase in claim
payments in 1996 compared to 1995. See "Business of Medical Defense Associates -
Reserves for Unpaid Losses and Loss Adjustment Expenses." Realized investment
gains declined $123,697, when compared to 1995, as fixed-income investment
prices were generally higher in 1996 and therefore the opportunity to realize
investment gains was not as prevalent as in 1995.
10
<PAGE>
Results of Operations, continued
The Company recorded a 9.7% or $1,874,850 increase in total revenues during
1995 as compared to 1994. This increase was primarily the result of three
factors. First, based on revised actuarial estimates, the Company reduced by
$800,000 its estimate of the unearned premium reserve for future utilization of
the death, disability, and retirement benefit, included as a part of MDA's
claims-made policies, which resulted in an increase in premiums earned of
$800,000. Secondly, MDA instituted a 14% rate increase effective January 1, 1995
on all of MDA's new and renewal business which, coupled with other routine
changes in MDA's book of business, resulted in an increase in premiums earned
during 1995 of approximately $875,000 when compared to 1994. Finally, the
Company's investment income and net realized investment gains increased in 1995
approximately $200,000 over the previous year. This increase was due to the
Company increasing its total invested assets during 1995 as other assets such as
premiums receivable and reinsurance receivables were collected and converted to
invested assets.
During 1996, total expenses increased $4,437,310 or 23.2% compared to 1995.
This increase was almost entirely the result of an increase in claim losses and
claim loss adjustment expenses which increased approximately $4.2 million
compared to these same expenses in 1995. Due to an increase in the amount of
claim loss and loss adjustment expense payments during 1996, Company management
retained its actuary to perform additional actuarial analysis and as a result of
actuarial analysis, the Company strengthened its loss and loss adjustment
expense reserves for accident years prior to 1996 by approximately $4.6 million.
The Company will continue to monitor the level of claim severity, and to seek
input from actuaries as appropriate. The balance of the increase in total
expenses during 1996 compared to 1995 was primarily the result of an increase in
amortization of deferred acquisition costs of approximately $315,000, which is
entirely related to Missouri premium taxes. The Company was not subject to
Missouri premium taxes prior to the completion of MDA's demutualization on June
26, 1995 and therefore, no deferred acquisition costs were recorded or amortized
prior to that date.
See "Business of Medical Defense Associates - Reserves for Unpaid Losses
and Loss Adjustment Expenses."
During 1995, total expenses for the Company increased $1,292,514 or 7.2%
compared to 1994. This increase was primarily the net result of an approximate
$1.4 million increase in loss and loss adjustment expenses and a decrease in
other expenses of about $140,000. The reserves for loss and loss adjustment
expenses are based on actuarially determined estimates and any change to the
estimated total reserve is reflected in current earnings. For 1995 total
incurred direct loss and loss adjustment expenses are estimated at $18,115,000.
This is an increase of $1,487,000 from the initial estimated incurred direct
loss and loss adjustment expenses of $16,628,000 for 1994. The decrease in other
expenses was the net result of small increases in deferred acquisition costs and
miscellaneous holding company expenses which totaled approximately $110,000 and
a decrease in other expenses of approximately $250,000 which was the result of
various MDA demutualization and conversion expenses incurred in 1994 in excess
of related amounts incurred in 1995.
As a result of the items discussed above, the Company experienced a loss
(before provision for income taxes) of $4,705,629, compared to income (before
provision for income taxes) of $2,064,641 in 1995. The Company's total tax
provision increased $547,150 to $795,413 which was primarily the result of an
increase in the deferred tax provision of approximately $3.7 million. This
increase in the deferred tax provision was due to an increase in the deferred
tax asset valuation allowance of approximately $2.4 million, which relates
entirely to loss reserve discounting and represents the difference between the
total deferred tax asset related to loss reserve discounting required by the
Internal Revenue Service and the amount that is more likely than not to be
realized. As a result, the Company's net loss for 1996 was $5,501,042 compared
to net income of $1,816,378 for 1995.
For the year ended December 31, 1995, the Company's income before provision
for income taxes increased $582,336 compared to the year ended December 31,
1994. The Company's total tax provision for 1995 was $248,263 which was a
decrease of $337,651 compared to 1994. The decrease in the Company's tax
provision for 1995, when compared to 1994, was primarily the result of
differences in loss and loss adjustment expense reserve discounting for tax
purposes. As a result, the Company's net income for 1995 was $1,816,378 compared
to $896,391 for 1994.
11
<PAGE>
Financial Condition
Total consolidated assets of the Company at December 31, 1996 were
$96,778,494 which was a decrease of approximately $11.4 million or 10.6% as
compared to December 31, 1995. This decrease was primarily due to an increase of
approximately $6.6 million in the payment of claim loss and loss adjustment
expenses when compared to amounts paid in 1995, a $2.0 million decline in
premiums from policyholders due to the decline in total policyholders, the
purchase of approximately 2.8 million shares of the Company's outstanding
preferred stock for approximately $1.1 million, a decline in the net after-tax
market value of the Company's fixed-income investment portfolio of approximately
$1.1 million due to generally higher interest rate yields at the end of 1996
compared to the end of 1995 which has an inverse effect on the market value of
bonds held in the Company's investment portfolio, and an approximate $0.6
million in paid federal income taxes relating to 1995. Over 89% of the Company's
total assets at December 31, 1996 are comprised of cash, cash equivalents, or
investments and, in addition, the Company's investment portfolio is
conservatively invested in high-quality investments as approximately 80% of
total assets at December 31, 1996 consisted of either cash or cash equivalents,
U.S. Treasury bonds or notes, or U.S. government agency bonds. In addition, the
Company does not hold, either directly or indirectly, any real estate owned for
investment purposes, any fixed maturity investments rated below AA by nationally
recognized rating agencies, or any equities other than stock in affiliates. The
composition of the Company's total investments is not anticipated to change
substantially in the near future.
Total consolidated liabilities of the Company at December 31, 1996 were
$74,943,004 decreased $3,699,108 from the previous year end. This decrease was
the result of the increase in claim payments resulting in an approximate $2.5
million decline in unpaid losses and loss adjustment expenses, the decrease in
income taxes payable of approximately $0.6 million, and a decline of
approximately $0.5 million in the unearned premium reserve which was primarily
due to the decrease in policyholders. Over 84% of the Company's total
liabilities at December 31, 1996 relate to reserves for unpaid losses and loss
adjustment expenses, which declined approximately $2.5 million from the prior
year end. These unpaid loss and loss adjustment expense reserves are established
based on actuarially determined estimates and are reviewed regularly by
management and the Company's independent actuary.
Stockholders' equity decreased $7,721,608 as of December 31, 1996, which
was a decline of 26.1% from December 31, 1995. This decrease was due to the net
loss in 1996 of $5,501,042, the purchase of the Company's preferred stock for
$1,112,535, and the net decline in the unrealized gains and losses on fixed
maturity investments of $1,108,031, all discussed earlier.
Liquidity and Capital Resources
Future cash flow for the Company will be primarily dependent on the ability
of its subsidiary, MDA, to pay cash dividends. MDA's cash flow is generated from
its insurance operations and investment portfolio. MDA is subject to annual
statutory dividend limitations as to the amount of any dividend which may be
paid without prior approval of the Director of the Missouri Department of
Insurance. For 1997 the maximum dividend payable to the Company from MDA,
without prior approval of the Missouri Department of Insurance, is $2,106,023.
The Company's consolidated net cash flow provided by operating activities
decreased by $12,750,632 for the year ended December 31, 1996 compared to the
previous year. This decrease was primarily the result of several factors
including a decrease in net income for 1996 compared to 1995 of approximately
$7.3 million, a decrease in unpaid loss and loss adjustment expenses during 1996
compared to 1995 of approximately $2.5 million, and the collection in 1995 of
amounts recorded as receivable from reinsurers which accounted for approximately
$2.2 million of the variation from 1995. For the year ended December 31, 1995
net cash flow provided by operating activities increased by $8,623,699 compared
to the change in the previous year. This increase was due to the increase in net
income for 1995 compared to 1994 of approximately $920,000, the collection in
1995 of amounts recorded as receivable from reinsurers during 1994 accounting
for approximately $4.6 million of the variation, a decline in premiums
receivable from insureds of about $1.9 million which was primarily the result of
changes in payment options available to policyholders and other routine changes
in MDA's book of business, and a decrease in paid loss and loss adjustment
expenses during 1995 compared to 1994 of approximately $1.4 million.
12
<PAGE>
Liquidity and Capital Resources, continued
During 1996, due to cash flow used by operating activities, the Company's
net cash flow provided from investing activities was $6,785,490, as fewer fixed
maturity investments were purchased to replace those investments sold or
matured. Due to the positive cash flow provided by operations during 1995, the
Company was able to increase net cash flow in investing activities for the year
ended December 31, 1995 by $6,812,854.
On November 15, 1996 the Company completed the acquisition of 2,781,338
shares of its preferred stock at $0.40 per share in a tender offer dated
September 12, 1996. On June 26, 1995 the Company received $499,996 in cash for
the sale of shares of Class A Common Stock to Company principals in conjunction
with the consummation of the conversion of MDA to a wholly-owned stock
subsidiary of the Company.
The Company's cash flow from operations and its investment portfolio are
utilized to meet its obligations related to payment of losses and loss
adjustment expenses, payment of operating expenses, and other needs as deemed
necessary from time to time. The Company does not anticipate in the immediate
future any major capital expenditures outside the normal course of operations.
The Company anticipates that its future cash flow will be sufficient to
meet its ongoing obligations for the foreseeable future.
13
<PAGE>
Item 8. Financial Statements and Supplementary Data
----------------------------------------------------
MEDICAL DEFENSE HOLDING CO. AND SUBSIDIARIES
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULES
<TABLE>
<CAPTION>
Page
----
<S> <C>
Report of Independent Accountants.......................................... 15
Consolidated Balance Sheets as of December 31, 1996 and 1995............... 16
Consolidated Statements of Operations for the years ended December 31,
1996, 1995 and 1994..................................................... 18
Consolidated Statements of Changes in Stockholders' Equity for the years
ended December 31, 1996, 1995 and 1994.................................. 19
Consolidated Statements of Cash Flow for the years ended December 31,
1996, 1995 and 1994..................................................... 20
Notes to Consolidated Financial Statements................................. 21
Schedules:
Report of Independent Accountants on Supplemental Schedules........... S-1
I - Summary of Investments as of December 31, 1996, 1995 and 1994......... S-2
II - Condensed Financial Information of Registrant (Parent Company Only)
for the year ended December 31, 1996 and 1995...................... S-3
IV - Reinsurance Schedule for the years ended December 31, 1996, 1995
and 1994........................................................... S-6
V - Valuation and Qualifying Accounts Gross of Reinsurance for the
years ended December 31, 1996, 1995 and 1994....................... S-7
VI - Supplemental Information Concerning Property/Casualty Insurance
Operations as of December 31, 1996, 1995 and 1994 and for the
years then ended................................................... S-8
</TABLE>
14
<PAGE>
Report of Independent Accountants
To the Board of Directors
Medical Defense Holding Co.:
We have audited the accompanying consolidated balance sheets of Medical Defense
Holding Co. and Subsidiaries (the "Company") as of December 31, 1996 and 1995,
and the related consolidated statements of operations, changes in stockholders'
equity and cash flows for each of the three years in the period ended December
31, 1996. These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the consolidated financial position of the Medical
Defense Holding Co. and Subsidiaries as of December 31, 1996 and 1995 and the
consolidated results of their operations and their cash flows for each of the
three years in the period ended December 31, 1996, in conformity with generally
accepted accounting principles.
COOPERS & LYBRAND L.L.P.
St. Louis, Missouri
February 21, 1997
15
<PAGE>
Medical Defense Holding Co.
Consolidated Balance Sheets
December 31, 1996 and 1995
<TABLE>
<CAPTION>
ASSETS 1996 1995
<S> <C> <C>
Investments:
Fixed maturity investments, at market
value (amortized cost of $79,151,698
and $82,944,882, respectively) $ 78,789,906 $ 84,258,601
Short-term investments, at market 4,508,740 7,489,028
------------- --------------
Total investments 83,298,646 91,747,629
Other assets:
Cash and cash equivalents 3,514,854 4,952,745
Accrued investment income 1,054,327 1,158,529
Premium receivable 1,895,965 2,552,893
Reinsurance recoverable on loss and
loss expenses:
Paid claims 2,798
Unpaid claims 1,951,000 2,383,000
Deferred policy acquisition costs 120,527
Property and equipment, net of accumulated
depreciation of $1,163,536 and
$1,074,167, respectively 1,117,542 1,083,539
Federal income tax:
Current - refundable 2,401,224
Deferred 1,204,000 3,512,609
Other assets 338,138 687,739
------------- --------------
Total assets $ 96,778,494 $ 108,199,210
============= ==============
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
16
<PAGE>
<TABLE>
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY 1996 1995
<S> <C> <C>
Liabilities:
Claims and policy liabilities:
Unpaid losses and loss adjustment expenses $63,205,000 $ 65,660,000
Unearned premiums 7,571,534 8,054,837
----------- ------------
Total claims and policy liabilities 70,776,534 73,714,837
Other liabilities:
Retrospective premium due reinsurers 1,970,047 2,195,496
Amounts withheld or retained by Company
for account of others 273,679 366,637
Income taxes payable 618,474
Other liabilities 1,922,744 1,746,668
----------- ------------
Total liabilities 74,943,004 78,642,112
----------- ------------
Stockholders' equity:
Preferred stock, par value $1.00 per share;
12,000,000 shares authorized:
9,208,851 and 11,990,189 shares issued and
outstanding, respectively (Note 3) 9,208,851 11,990,189
Class A common stock, $0.50 per share;
2,000,000 shares authorized:
999,998 issued and outstanding 499,999 499,999
Class B common stock, $0.50 per share;
48,000,000 shares authorized:
19,604 shares issued and outstanding 9,802 9,802
Additional Paid in Capital (Note 3) 1,668,803
Unrealized gains (losses) on investments
(net of deferred income taxes benefit
(provision) of $122,565 and $(448,239),
respectively) (237,920) 870,111
Retained earnings 10,685,955 16,186,997
----------- ------------
Total stockholders' equity/surplus as
regards policyholders 21,835,490 29,557,098
----------- ------------
Total liabilities and stockholders' equity $96,778,494 $108,199,210
=========== ============
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
17
<PAGE>
Medical Defense Holding Co.
Consolidated Statements of Operations
for the years ended December 31, 1996, 1995 and 1994
<TABLE>
<CAPTION>
1996 1995 1994
<S> <C> <C> <C>
Revenues:
Premiums earned, including retrospective premium
adjustments of $196,034, $70,000, and $45,330,
respectively $ 13,200,021 $ 15,183,259 $ 13,507,848
Investment income 5,583,656 5,810,039 5,582,945
Net realized investment gains 94,918 218,615 246,272
Other income 825 467 465
------------- ------------- -------------
Total revenues 18,879,420 21,212,380 19,337,530
------------- ------------- -------------
Expenses:
Losses and loss adjustment espenses, net of
reinsurance recoveries of ($432,000), ($522,000),
and ($2,223,000), respectively 20,379,346 16,158,522 14,727,455
Amortization of policy acquisition cost 374,546 59,921
Other underwriting and insurance expenses 2,396,302 2,585,322 2,834,996
Investment expenses 286,894 286,762 272,172
Other operating expenses 147,961 57,212 20,602
------------- ------------- -------------
Total expenses 23,585,049 19,147,739 17,855,225
------------- ------------- -------------
Income (loss) before provision for
federal income taxes (4,705,629) 2,064,641 1,482,305
------------- ------------- -------------
Provision for federal income taxes:
Current (2,084,000) 1,088,686 41,000
Deferred 2,879,413 (840,423) 544,914
------------- ------------- -------------
Total tax provision 795,413 248,263 585,914
------------- ------------- -------------
Net income (loss) $ (5,501,042) $ 1,816,378 $ 896,391
============= ============= =============
Earnings per common share and common
equivalent share (Note 12):
Primary - Weighted average shares 24,300,846 24,999,980 -
============= ============= =============
Net income (loss) per common share $ (0.23) $ 0.05 $ -
============= ============= =============
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
18
<PAGE>
Medical Defense Holding Co.
Consolidated Statements of Changes in
Stockholders' Equity
for the years ended December 31, 1996, 1995 and 1994
<TABLE>
<CAPTION>
1996 1995 1994
<S> <C> <C> <C>
Stockholders' equity, January 1 $ 29,557,098
Surplus as regards policyholders, January 1 $ 22,931,598 $27,089,837
Changes in surplus/stockholders' equity:
Net (loss) income (5,501,042) 1,816,378 896,391
Issuance of 999,998 shares common stock Class A 499,996 3
Purchase of 2,781,338 shares of preferred stock (1,112,535)
Change in unrealized gains and losses on fixed
maturity investments (net of related deferred
tax credits (provision) of $570,804,
$(2,219,853) and $2,603,902, respectively) (1,108,031) 4,309,126 (5,054,633)
-----------
Surplus as regards policyholders, December 31 $22,931,598
------------- ------------- ===========
Stockholders' equity, December 31 $ 21,835,490 $ 29,557,098
============= =============
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
19
<PAGE>
Medical Defense Holding Co.
<TABLE>
<CAPTION>
Consolidated Statements of Cash Flow
for the years ended December 31, 1996, 1995 and 1994
1996 1995 1994
<S> <C> <C> <C>
Operating activities:
Net income $ (5,501,042) $ 1,816,378 $ 896,391
Adjustments to reconcile net income to net cash (used)
provided by operating activities:
Realized investment gains (94,918) (218,615) (246,272)
Depreciation and amortization of deferred policy acquisition costs 480,341 150,739 102,487
Provision (benefit) for deferred income tax 2,879,413 (840,423) 544,914
Change in assets and liabilities:
Accrual and amortization of investment income 43,980 197,536 109,091
Premiums receivable from policyholders 656,928 2,110,509 240,989
Policy acquisition costs deferred (254,019) (180,448)
Reinsurance recoverable on loss and loss expenses:
Paid claims (2,798) 2,304,696 (2,304,696)
Unpaid claims 432,000 522,000 2,223,000
Unpaid losses and loss adjustment expenses (2,455,000) (143,000) (4,633,000)
Unearned premiums (483,303) (1,154,845) 753,127
Retrospective premium due reinsurers (225,449) (390,956) (414,154)
Amounts withheld or retained by Company on account of others (92,958) 78,321 24,978
Income tax (3,019,698) 1,328,686 (639,998)
Other assets 349,601 (205,653) (361,615)
Other liabilities 176,076 264,861 720,845
-------------- -------------- -------------
Net cash (used) provided by operating activities (7,110,846) 5,639,786 (2,983,913)
------------- -------------- -------------
Investing activities:
Proceeds from:
Fixed maturity investments:
Sales 5,599,375 10,006,129 11,215,139
Maturities 7,466,549 5,551,096 6,196,139
Short-term investments - Maturities 26,519,421 4,340,000 8,005,000
Purchase of investments:
Fixed maturity investments (9,428,393) (17,869,313) (17,787,670)
Short-term investments (23,231,664) (8,795,496) (2,940,000)
Purchases of property and equipment (139,798) (45,270) (6,443)
-------------- -------------- -------------
Net cash provided (used) by investing activities 6,785,490 (6,812,854) 4,682,165
-------------- -------------- -------------
Financing activities:
Proceeds from sale of common stock 499,996 3
Purchase of preferred stock (Note 3) (1,112,535)
Net cash (used) provided by financing activities (1,112,535) 499,996 3
-------------- -------------- -------------
Net (decrease) increase in cash and cash equivalents (1,437,891) (673,072) 1,698,255
Cash and cash equivalents, beginning of period 4,952,745 5,625,817 3,927,562
-------------- -------------- -------------
Cash and cash equivalents, end of period $ 3,514,854 $ 4,952,745 $ 5,625,817
============== ============== =============
Federal income taxes paid (recovered) $ 935,698 $ (231,000) $ 831,500
============== ============== =============
</TABLE>
The accompanying notes are an integral part of the
consolidated financial statements.
20
<PAGE>
Medical Defense Holding Co.
Notes to Consolidated Financial Statements
1. Organization and Related Matters:
Medical Defense Holding Co. (the "Company") is a Missouri general business
corporation formed on November 28, 1994, for the purpose of facilitating
the consummation of a series of transactions whereby Medical Defense
Associates ("MDA") converted from a mutual assessment insurance
organization under Chapter 383 RSMo to a wholly-owned stock insurance
company subsidiary of the Company. MDA's conversion was completed on June
26, 1995 in accordance with an agreement and plan of conversion dated
November 29, 1994. The agreement and plan of conversion was approved by
eligible policyholders at a special meeting on April 3, 1995.
MDA was organized in 1976 as a mutual assessment insurance organization for
the purpose of providing protection against loss from medical professional
liability claims for Missouri health care professionals. MDA's wholly-owned
subsidiary, Medical Defense Services Corp.("MDS") provides management
services primarily to MDA. MDS's wholly-owned subsidiary, Medical Defense
Insurance Company ("MDIC"), is a stock insurance company organized under
Chapter 379 RSMo for the purpose of providing protection against loss from
medical professional liability claims. MDIC is licensed to operate in
Missouri and Kansas but only wrote business in Kansas from its inception in
1982 until September 1, 1988 when it ceased writing business. In 1994, MDIC
again began writing policies in Kansas.
2. Summary of Significant Accounting Policies:
The following is a description of the significant accounting policies under
generally accepted accounting principles followed by the Company in the
preparation of the accompanying consolidated financial statements:
A. Pervasiveness of Estimates: The preparation of consolidated financial
statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities at the date of the
consolidated financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ
from those estimates.
B. Principles of Consolidation: The consolidated financial statements of
the Company include Medical Defense Holding Co. and its wholly-owned
subsidiaries, MDA, MDS and MDIC. As described in Note 1, the Company
acquired MDA on June 26, 1995. The accompanying statements which
pertain to preacquisition periods have been prepared as if the
companies were combined throughout those periods. All significant
intercompany transactions have been eliminated.
C. MDA Statutory Net Income and Surplus: The accompanying financial
statements have been prepared in conformity with generally accepted
accounting principles which vary in certain respects from accounting
practices prescribed or permitted by the Missouri Department of
Insurance statutory accounting practices.
21
<PAGE>
Medical Defense Holding Co.
Notes to Consolidated Financial Statements, Continued
2. Summary of Significant Accounting Policies, continued:
C. MDA Statutory Net Income and Surplus, continued: A reconciliation of
net income for the years 1996, 1995 and 1994 and surplus as regards
policyholders at December 31, 1996, 1995 and 1994 reported by MDA on a
generally accepted accounting principles (GAAP) basis which includes
its wholly-owned subsidiaries MDS and MDIC, to the amounts reported by
MDA on a statutory basis which includes equity in MDS and MDIC is as
follows:
<TABLE>
<CAPTION>
Net (Loss) Income
Year ended December 31 1996 1995 1994
<S> <C> <C> <C>
GAAP net (loss) income $(5,649,894) $ 1,570,789 $ 947,680
Change in deferred acquisition costs 120,528 (120,528)
Discount of reserves (176,000)
Deferred income taxes 2,879,413 (840,423) 244,042
------------ ------------ -----------
Statutory net (loss) income $(2,649,953) $ 609,838 $ 1,015,722
=========== =========== ===========
Surplus as Regards Policyholders
Year ended December 31
GAAP basis $19,829,961 $26,427,657 $22,931,595
Nonadmitted assets for statutory reporting (25,886) (23,422) (359,121)
Unrealized losses (gains) 370,151 (1,304,624) 3,439,015
Deferred acquisition costs (120,528)
Discount of reserves 2,090,000 2,787,000 3,484,000
Deferred income taxes (1,204,000) (3,512,609) (3,142,573)
------------ ----------- -----------
Statutory surplus as regards policyholders $21,060,226 $24,253,474 $26,352,916
=========== =========== ===========
</TABLE>
The maximum amount of dividends which can be paid by Missouri
insurance companies without prior approval of the Insurance
Commissioner is subject to statutory provisions. Dividends paid by
MDA to the Company during 1996 and 1995 were $0 and $2,600,000,
respectively. The maximum dividend payout which may be made in 1997
is $2,106,000.
22
<PAGE>
Medical Defense Holding Co.
Notes to Consolidated Financial Statements, Continued
2. Summary of Significant Accounting Policies, continued:
D. Premium Revenues and Related Expenses: Premiums are recognized as
income over the terms of the related insurance policies. The unearned
premium reserve represents the portion of the premiums written that
relate to the unexpired terms of policies in force. Such reserves are
computed on a pro rata method.
The Company operates as a direct writer of professional liability
insurance and thus does not incur sales commissions or other variable
sales costs directly related to premium production which are normally
associated with deferred acquisition costs. Subsequent to completion
of MDA's conversion to a stock insurance company, as discussed in Note
1, all MDA premiums written are subject to Missouri premium taxes.
Deferred acquisition costs recorded during 1996 and 1995 relate
entirely to Missouri premium taxes. Such deferred costs are amortized
over the terms of the underlying policies, written off when policies
are canceled and tested for recoverability out of the unearned premium
reserve annually.
E. Unpaid Losses and Loss Adjustment Expenses: As more fully described in
Note 10, the reserves for losses and loss adjustment expenses include
amounts determined on the basis of individual claims and actuarially
determined estimates of future losses. The methods of making such
estimates and for establishing the resulting liabilities are
continually reviewed and updated based upon current circumstances and
any adjustments resulting therefrom are reflected in current
operations.
Losses and loss adjustment expenses incurred, and the liabilities for
unpaid losses and loss adjustment expenses are shown gross of any
reinsurance recoveries from other companies. In the event that any
reinsuring company was unable or unwilling to meet its obligations
under existing agreements, MDA would become liable.
F. Investments: In May 1993, the Financial Accounting Standards Board
published SFAS 115 which requires certain changes in the accounting
and reporting on certain investments in debt and equity securities.
Among other things, SFAS 115 requires companies to classify securities
into three categories. Held-to-maturity debt securities that the
Company has the positive intent and ability to hold to maturity, are
to be reported at amortized cost. Debt and equity securities that are
bought and held principally for the purpose of selling them in the
near term are classified as trading securities and are to be reported
at fair value, with unrealized gains and losses included in earnings.
Debt and equity securities not classified in the other two categories
are classified as available-for-sale securities and reported at fair
value, with unrealized gains and losses excluded from earnings, and
reported as a separate component of surplus as regards policyholders.
23
<PAGE>
Medical Defense Holding Co.
Notes to Consolidated Financial Statements, Continued
2. Summary of Significant Accounting Policies, continued:
F. Investments, continued: The Company has classified all investments in
fixed maturities as available for sale and carries such investments at
market value as a result of the Company's willingness to sell
investments based on market conditions and interest rate changes. The
adoption of SFAS 115 in 1994 had no financial statement impact as the
Company previously carried such investments at market under SFAS 60.
Should the Company experience declines in market value that are other
than temporary, the difference between amortized cost and market would
be recognized through current earnings.
Fair value is defined as market value based on third-party quoted
market prices or when unavailable, on similar investments.
Investment income includes amortization of premium and accretion of
discount relating to fixed maturities acquired at other than par
value.
At December 31, 1996 and 1995, short-term investments consist of
certificates of deposit which mature between three months and one
year, a repurchase agreement investing exclusively in securities
issued and guaranteed by the U.S. Treasury, and U.S. Treasury Bills
with original maturities between three months and one year. The
carrying amounts reported in the balance sheet for these instruments
approximate their fair values.
Gains or losses on sales of investments are determined on a specific
cost identification basis.
G. Property and Equipment: Property and equipment are carried at cost
less accumulated depreciation. Depreciation is computed over the
estimated useful lives of the assets using the straight-line method.
Maintenance, repairs and minor renewals are charged to expense as
incurred while renewals and betterments are capitalized.
The cost and related allowance for depreciation of assets sold or
retired are removed from the related accounts and the resulting gains
or losses are reflected in operations.
H. Federal Income Taxes: The Company employs the provisions of Statement
of Financial Accounting Standards No. 109, Accounting for Income Taxes
("SFAS 109"). SFAS 109 requires recognition of deferred tax assets and
liabilities for the expected future tax consequences of events that
have been included in the financial statements or tax returns. Under
this method, deferred tax assets and liabilities are determined based
upon the differences between the financial statement and tax bases of
assets and liabilities using enacted tax rates in effect for the year
in which the differences are expected to reverse.
I. Cash Equivalents: Cash equivalents represent certificates of deposit
with original maturity dates within 90 days.
24
<PAGE>
Medical Defense Holding Co.
Notes to Consolidated Financial Statements, Continued
3. Capital Stock:
During 1995 the Company issued 11,999,991 shares of $1.00 par value
redeemable convertible preferred stock to the eligible policyholders of MDA
in exchange for their mutual policyholders' rights in MDA. Each share of
preferred stock is convertible into two shares of Medical Defense Holding
Co. Class B Common Stock, at the holder's option, and may be converted at
any time prior to redemption. Each share of preferred stock is redeemable,
at the Company's option, after three years from the date of issuance, at a
price per share of $1.00. The preferred stock does not provide a stated
dividend; however, no dividends may be paid on any Company common stock
while there are preferred stock shares outstanding. In 1995, 9,802 shares
of preferred stock were converted to 19,604 shares of Class B common stock.
On September 12, 1996, MDHC initiated a tender offer for up to 5,000,000
shares of the Company's $1.00 par value redeemable preferred stock at a
price ranging from $0.30 to $0.40 per share, utilizing a method commonly
referred to as a Dutch auction. This offer closed on November 1, 1996, with
the Company accepting 2,781,338 tendered shares at a price of $0.40 per
share. The tender offer was completed on November 15, 1996, with the
Company's payment of $1,112,535 for all preferred shares accepted for
purchase. The difference between the payment and the par value of the stock
has been credited to additional paid-in capital.
The Company has issued shares of $0.50 par value Class A common stock, in
accordance with an agreement and plan of conversion dated November 29,
1994, in exchange for cash.
4. Investments:
The following information summarizes the difference between amortized cost
and market value of fixed maturities investments:
<TABLE>
<CAPTION>
Gross Gross Estimated
Amortized Unrealized Unrealized Market
December 31, 1996 Cost Gains Losses Value
<S> <C> <C> <C> <C>
U.S. Treasury debt securities and
obligations of U.S.
Government corporations and
agencies $40,130,465 $207,149 $336,604 $40,001,010
Corporate debt securities 6,371,525 78,063 37,161 6,412,427
Mortgage-backed securities 29,829,606 188,864 434,881 29,583,589
Other debt securities 2,820,102 13,306 40,528 2,792,880
----------- -------- -------- -----------
$79,151,698 $487,382 $849,174 $78,789,906
=========== ======== ======== ===========
</TABLE>
25
<PAGE>
Medical Defense Holding Co.
Notes to Consolidated Financial Statements, Continued
4. Investments, continued:
<TABLE>
<CAPTION>
Gross Gross Estimated
Amortized Unrealized Unrealized Market
December 31, 1995 Cost Gains Losses Value
<S> <C> <C> <C> <C>
U.S. Treasury debt securities and
obligations of U.S.
Government corporations and
agencies $ 40,744,234 $ 927,384 $ 77,008 $ 41,594,610
Corporate debt securities 6,582,096 218,052 7,370 6,792,778
Mortgage-backed securities 32,741,359 418,313 148,756 33,010,916
Other debt securities 2,877,193 16,484 33,380 2,860,297
------------- ------------- ------------- -------------
$ 82,944,882 $ 1,580,233 $ 266,514 $ 84,258,601
============= ============= ============= =============
</TABLE>
The change in net unrealized holding gain or loss on available for sale
securities, net of deferred taxes, for the years ended December 31, 1996,
1995 and 1994 are as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1996 1995 1994
$ (1,108,031) $ 4,309,126 $ (5,054,633)
=============== ============ =============
</TABLE>
The amortized cost and estimated market value of debt securities by
estimated and contractual maturity are shown as follows:
<TABLE>
<CAPTION>
Estimated
Amortized Market
December 31, 1996 Cost Value
<S> <C> <C>
Due in one year or less $ 7,522,826 $ 7,478,960
Due after one year through five years 45,582,427 45,387,871
Due after five years through ten years 20,362,226 20,282,559
Due after ten years 5,684,219 5,640,516
------------- -------------
$ 79,151,698 $ 78,789,906
============= =============
</TABLE>
For purposes of the above, bonds without prepayment characteristics have
been included at their stated maturity date. Bonds with prepayment features
are included at their estimated maturity date as supplied by the Company's
investment adviser.
26
<PAGE>
Medical Defense Holding Co.
Notes to Consolidated Financial Statements, Continued
4. Investments, continued:
Accrued investment income at December 31, is as follows:
<TABLE>
<CAPTION>
1996 1995
<S> <C> <C>
U.S. Treasury securities $ 726,630 $ 801,524
Corporate bonds 140,595 147,178
Mortgage-backed securities 174,860 193,528
Other debt securities 12,242 15,374
Short-term investments - 925
------------ ------------
$ 1,054,327 $ 1,158,529
============ ============
</TABLE>
Securities on Deposit With Statutory Authorities: MDA had a U.S. Treasury
Note with a par value of $1,400,000 at December 31, 1996, on deposit with
the state of Missouri. In addition, MDA had on deposit U.S. Treasury Notes
with a par value totaling $5,000,000 at December 31, 1996, on deposit with
the state of Missouri in compliance with a joint custody agreement with the
Missouri Department of Insurance. This joint custody agreement relates to
the release of MDA's former members' assessment liabilities relative to
assessable insurance policies issued by MDA prior to the conversion date
(Note 1).
To comply with the Missouri Department of Insurance, MDIC had a U.S.
Treasury Note with a par value of $850,000 as of December 31, 1996 and
1995, on deposit with the state of Missouri.
Escrow Funds: Pursuant to the settlement agreement for a specific claim,
MDA has deposited $400,000 in escrow to guarantee future annuity payments.
MDA receives all earnings on the escrowed funds. At December 31, 1996 and
1995, the escrowed funds were invested in a $400,000 par value U.S.
Treasury Note with a fair value of $400,876 and $408,248, respectively,
which is included with investments on the balance sheet. This U.S. Treasury
note matures April 30, 2001.
27
<PAGE>
Medical Defense Holding Co.
Notes to Consolidated Financial Statements, Continued
4. Investments, continued:
Net investment income by source for each of the three years ended December
31, was as follows:
<TABLE>
<CAPTION>
1996 1995 1994
<S> <C> <C> <C>
Investment income:
Fixed maturity investments $ 5,111,510 $ 5,285,665 $ 5,215,182
Short-term investments 472,146 524,374 367,763
------------ ------------ ------------
Total investment income 5,583,656 5,810,039 5,582,945
Less investment expenses 286,894 286,762 272,172
------------ ------------ ------------
Net investment income $ 5,296,762 $ 5,523,277 $ 5,310,773
============ ============ ============
</TABLE>
Realized gains on investments reflected in the results of operations for
each of the three years ended December 31, are as follows:
<TABLE>
<CAPTION>
1996 1995 1994
<S> <C> <C> <C>
Sale of fixed maturity investments:
Realized gains $ 103,817 $ 220,862 $ 261,210
Realized losses (8,899) (2,247) (14,938)
------------ ------------ -----------
Net realized gains $ 94,918 $ 218,615 $ 246,272
============ ============ ===========
</TABLE>
5. Concentrations of Credit Risk:
The Company maintains the following assets, at amortized cost, issued by
single entities in excess of 10% of stockholders' equity at December 31:
<TABLE>
<CAPTION>
1996 1995
<S> <C> <C>
Commerce Bank of Springfield -
Collateralized repurchase agreement $ 3,315,000 $ 4,725,000
============ ============
</TABLE>
All premiums are receivable from physicians, surgeons, dentists, and
related health care providers, primarily concentrated in Missouri.
See Note 8 regarding reinsurance.
28
<PAGE>
Medical Defense Holding Co.
Notes to Consolidated Financial Statements, Continued
6. Management Contract:
MDA and MDIC entered into contracts in 1983 with MDS whereby MDS performs
management and administrative services on behalf of the insurance
companies.
MDS has a noncontributory defined contribution pension plan covering
substantially all employees of the affiliated group. As a matter of policy,
pension costs are funded as they accrue. Pension expense was $175,968,
$203,710 and $202,471 in 1996, 1995 and 1994, respectively. MDS also has a
401(k) savings plan covering substantially all employees of the affiliated
group which the Company provides a 100% matching contribution up to 6% of
compensation subject to current IRS limitations. The 401(k) savings plan
expense for 1996, 1995 and 1994 totaled $85,042, $79,985 and $79,165,
respectively.
7. Deferred Policy Acquisition Costs:
Changes in deferred policy acquisition costs at December 31, are summarized
as follows:
<TABLE>
<CAPTION>
1996 1995
<S> <C> <C>
Deferred, January 1 $ 120,527 $ -
Additions - Premium tax 254,019 180,448
Less - Amortization and write-off to expense 374,546 59,921
---------- ----------
Deferred, December 31 $ 0 $ 120,527
========== ==========
</TABLE>
8. Reinsurance:
MDA reinsured all occurrence basis policies issued after October 31, 1980
and all claims-made policies issued before November 1, 1987. MDA ceased
reinsuring claims-made policies as of November 1, 1987. All claims related
to occurrence policies issued after October 31, 1980 and claims-made
policies before November 1, 1987 are still reinsured. The Company is liable
for reinsured amounts in the event a reinsurer is unable to pay its portion
of the losses. The recoverable related to the policies is an asset on the
balance sheet.
29
<PAGE>
Medical Defense Holding Co.
Notes to Consolidated Financial Statements, Continued
8. Reinsurance, continued:
A reserve for estimated retrospective premium due reinsurers has been
established for the excess of the anticipated reinsurance premium payable
over the amount paid to date for reinsurance treaty years 1980 through
1987. The ultimate reinsurance premium to be paid is based on an actuarial
evaluation of the ultimate loss developments for claims arising during
those treaty years. Changes in the estimated amount due reinsurers is
reflected in current operations.
All reinsurance contracts are with Lloyd's Underwriters and related
syndicates.
MDIC reinsured all claims-made policies from February 14, 1983 through
August 14, 1987. As of December 31, 1996, MDIC had no outstanding claims
that were anticipated to involve reinsurers.
9. Federal Income Tax:
The Company files a consolidated federal income tax return. Pursuant to a
tax allocation agreement, the Company has followed a policy of allocating a
portion of its consolidated income tax provision to all consolidated
entities in amounts generally equivalent to the provision (benefit) which
would result if each entity filed a separate return.
The following table accounts for the differences between the actual tax
provision and the amounts obtained by applying the statutory U.S. federal
income tax rate to income before income taxes:
<TABLE>
<CAPTION>
1996 1995 1994
----------------------- ---------------------- ---------------------
Income Effective Income Effective Income Effective
Taxes Tax Rate Taxes Tax Rate Taxes Tax Rate
<S> <C> <C> <C> <C> <C> <C>
Pre-tax income (loss)
calculated at
statutory tax
rates $ (1,599,914) (34.00)% $ 701,978 34.00% $ 503,984 34.00%
Nondeductible
reorganization
costs 98,036 4.75 187,380 12.64
Tax-exempt interest (46,835) (3.16)
Other permanent
differences 20,623 0.45 (32,047) (1.56) 40,336 2.72
Change in valuation
allowance 2,374,704 50.94 (519,704) (25.17) (98,951) (6.68)
------------ ------ ---------- ------ --------- -----
Provision for income
taxes $ 795,413 17.39% $ 248,263 12.02% $ 585,914 39.52%
============ ===== ========== ====== ========= =====
</TABLE>
30
<PAGE>
Medical Defense Holding Co.
Notes to Consolidated Financial Statements, Continued
9. Federal Income Tax, continued:
The components of the net deferred tax asset at December 31, 1996 and 1995
are as follows:
<TABLE>
<CAPTION>
1996 1995
------------------------- ----------------------
Deferred Deferred Deferred Deferred
Tax Tax Tax Tax
Asset Liability Asset Liability
<S> <C> <C> <C> <C>
Tax discounting of loss
reserves $ 4,069,721 $ 4,582,544
Tax acceleration of
unearned premium 514,864 547,729
Deferred policy
acquisition costs $ 40,979
Unrealized gain/loss 122,565 448,239
------------ ------------ ----------- --------
$ 4,707,150 $ - $ 5,130,273 $489,218
============ ============ =========== ========
Net deferred federal
income tax asset $ 4,707,150 $ 4,641,055
Valuation allowance (3,503,150) (1,128,446)
------------ -----------
Net realized deferre
asset $ 1,204,000 $ 3,512,609
============ ===========
</TABLE>
The valuation allowance represents the difference betw een the total
deferred tax asset related to loss reserve discounting required by the
Internal Revenue Service and the amount that is more likely than not to be
realized. Medical malpractice is a long tail line of business. The
Company's payout pattern as well as the industry payout pattern for this
line of business is expected to be 15 years or longer.
Management evaluates the payout pattern based on advice from its outside
actuary concerning trends in claim frequencies and severities and needed
changes in future premium rates, industry trends and experience of direct
Missouri competitors in these matters.
31
<PAGE>
Medical Defense Holding Co.
Notes to Consolidated Financial Statements, Continued
9. Federal Income Tax, continued:
Projection of future income is inherently uncertain and the achievability
of any projection is made more difficult by the length of the discount
period. Historical losses cannot be adjusted precisely to future cost
levels and the impacts of future emergence of new classes of losses or
types of losses which may not be represented sufficiently in the Company's
data base or which are not yet quantifiable, cannot be precisely
anticipated. Utilizing an outside actuary, management believes that it can
reasonably estimate the amount of the loss reserves which will likely
settle in the next three years. Based on this estimate, management can
determine how much of the discount will likely reverse and could be
recovered, if necessary, from taxes paid in the three-year carryback
period.
Management does not believe it can reasonably determine the amount of loss
reserve deferred tax benefit which can be recovered from future taxable
income arising more than three years in the future using a more likely than
not standard.
The change in the valuation allowance is as follows:
<TABLE>
<CAPTION>
<S> <C> <C>
1996 1995 1994
$2,374,704 $ (519,704) $ (98,951)
========== ========== ==========
</TABLE>
10. Unpaid Losses and Loss Adjustment Expenses:
The Company's reserves for loss and loss adjustment expenses represent the
estimated ultimate cost of all losses and loss adjustment expenses which
are unpaid at the balance sheet date.
The reserves include estimates of future trends in claim frequency,
severity and cash flow, which could vary as the losses are ultimately
settled; thus, the ultimate liability may be in excess of, or less than,
the amounts provided in the accompanying financial statement.
Company management and their independent actuary believe the reserves are
reasonably stated to cover the ultimate net cost of losses and related loss
adjustment expenses which are unpaid at December 31, 1996 and 1995,
respectively; however, as the reserves are based on estimates, there can be
no assurance that the ultimate liability will not differ from such
estimates. Developments on 1995 and prior years are due primarily to
increases in claim severity that have been considered in ultimate loss
projections at December 31, 1996.
MDIC's reserves for loss and loss adjustment expenses have not been
actuarially reviewed due to the few number of claims outstanding. MDIC's
reserves represent less than 1% of total reserves for the periods
represented by the financial statements.
32
<PAGE>
Medical Defense Holding Co.
Notes to Consolidated Financial Statements, Continued
10. Unpaid Losses and Loss Adjustment Expenses, continued:
Activity in the liability for unpaid claims and claim adjustment expenses
is summarized as follows:
<TABLE>
<CAPTION>
1996 1995
<S> <C> <C>
Balance at January 1 $ 65,660,000 $ 65,803,000
Less reinsurance recoverables 2,383,000 2,905,000
------------- -------------
Net balance at January 1 63,277,000 62,898,000
------------- -------------
Incurred related to:
Current year 15,802,388 18,115,000
Prior years 4,576,958 (1,956,478)
------------- -------------
Total incurred 20,379,346 16,158,522
------------- -------------
Paid related to:
Current year 749,388 1,333,057
Prior years 21,652,958 14,446,465
------------- -------------
Total paid 22,402,346 15,779,522
------------- -------------
Net balance at December 31 61,254,000 63,277,000
Plus reinsurance recoverables 1,951,000 2,383,000
------------- -------------
Balance at December 31 $ 63,205,000 $ 65,660,000
============= =============
</TABLE>
11. Commitments and Contingencies:
The Company is party to a number of insurance claims arising in the normal
course of business. While the results of litigation cannot be predicted
with certainty, management, based upon the advice of Company's counsel,
believes that the final outcome of such litigation will not have a material
adverse effect on the consolidated financial position or results of
operations of the Company.
33
<PAGE>
Medical Defense Holding Co.
Notes to Consolidated Financial Statements, Continued
12. Net Income Per Common Share:
Net income per common share is computed using net income divided by the
weighted average number of common shares and common share equivalents
outstanding. All of the Company's outstanding shares of preferred stock are
convertible to common stock at a ratio of two shares of common stock for
each one share of preferred stock. Since the Company's preferred stock has
no stated dividend rate, and thus, no effective yield, these securities are
considered common stock equivalents for the purpose of computing net income
per common share.
As discussed in Note 3, on November 15, 1996, the Company completed the
purchase of 2,781,338 shares of its convertible preferred stock. The
average weighted number of common stock equivalents outstanding for 1996
reflects the purchase of these shares as of November 15, 1996.
Other than the preferred stock discussed above, the Company does not have
any other potentially dilutive stocks. Therefore, the computations for
fully diluted net income per common share are not presented since the
results do not differ from primary net income per common share.
Net income per share information is not computed for the period ending
December 31, 1994, as the conversion of MDA to a stock insurance company
and a wholly-owned subsidiary of MDHC was not completed until June 26,
1995, and therefore, all of the earnings for those periods are attributable
to the preconversion earnings of MDA. In addition, the net income of
$617,713 recorded by the subsidiary as of June 30, 1995, is virtually
entirely attributable to preconversion results and, therefore, is also
excluded for 1995 earnings per share presentation purposes.
Net income per common share for the two years ended December 31, is as
follows:
<TABLE>
<CAPTION>
1996 1995
<S> <C> <C>
Net income (loss) $ (5,501,042) $ 1,816,378
Less net income of subsidiary through
June 30, 1995 (617,713)
------------- -------------
Adjusted net income $ (5,501,042) $ 1,198,665
============== =============
Weighted average common shares
outstanding 1,019,602 1,019,602
Weighted average common stock options
expressed as common stock equivalents 23,281,244 23,980,378
------------- ------------
Weighted average common and equivalent
shares outstanding 24,300,846 24,999,980
============= ============
Net income per common share $ (0.23) $ 0.05
============= ============
</TABLE>
34
<PAGE>
Medical Defense Holding Co.
Notes to Consolidated Financial Statements, Continued
13. Retained Earnings:
Retained earnings at December 31, is derived as follows:
<TABLE>
<CAPTION>
1996 1995
<S> <C> <C>
Unassigned surplus/retained earnings at $ 16,186,997 $ 26,370,610
January 1
Less preferred stock issued at date of
conversion, including 9,802 shares
subsequently converted
(Note 1) (11,999,991)
Net income (5,501,042) 1,816,378
------------- --------------
Retained earnings at December 31 $ 10,685,955 $ 16,186,997
============= ==============
</TABLE>
35
<PAGE>
Item 9. Changes in and Disagreements with Accountants on Accounting and
------------------------------------------------------------------------
Disclosures
-----------
There have been no changes in nor any disagreements with accountants on
accounting and financial disclosure within the three year period ended December
31, 1996.
PART III
Item 10. Directors and Executive Officers of the Registrant
-----------------------------------------------------------
IDENTIFICATION OF DIRECTORS AND EXECUTIVE OFFICERS
The board of directors of the Company consists of six (6) persons, all of
whom are currently directors, executive officers, or both, of the Company, MDA,
MDS and MDIC.
The directors and executive officers of the Company are currently as
follows:
<TABLE>
<CAPTION>
Period as a
Director of the
Name Age Principal Occupation Position Company
---- --- -------------------- ---------------------- ---------------
<S> <C> <C> <C> <C>
Ronald G. Benson 56 Obstetrician/ Chairman of the Board, 1994 to date
Gynecologist President and Chief
Executive Officer
Gary L. Robinson 60 Obstetrician/ Vice President 1994 to date
Gynecologist
John J. Stamatis 55 Thoracic and Cardio- Vice President 1994 to date
vascular Surgeon
David W. Brown 58 Orthopedic Surgeon Treasurer 1994 to date
Arlen D. Winsky 59 Plastic Surgeon Secretary 1994 to date
Geri H. Morrison 41 Chief Operating Officer Assistant Secretary 1994 to date
and Chief Operating
Officer
Samuel J. Pippin 41 Director of Accounting Principal Financial
Officer and Principal
Accounting Officer
</TABLE>
The officers of the Company are to be elected annually and hold office
until their respective successors have been elected and qualified or until
death, resignation or removal by the board of directors of the company.
FAMILY RELATIONSHIPS
Geri H. Morrison and Robert E. Morrison are married to each other. In
addition to being a Director and Chief Operating Officer of the Company, Ms.
Morrison is a Director of MDA and MDIC and Chief Operating Officer of MDA, MDS
and MDIC. Mr. Morrison is a Director of MDA and MDIC.
36
<PAGE>
BUSINESS EXPERIENCE
Ronald G. Benson, M.D., age 56, has been a member of the Board of Directors
of the Company since 1994, MDA since 1976 and of MDS and MDIC since 1982. He has
served as Chairman of the Board of Directors of the Company since 1994, MDA
since 1983 and of MDS and MDIC since 1982. He has served as President and Chief
Executive Officer of the Company since 1994. Since 1976, he has served as
President of MDA and as Chief Executive Officer of MDA since 1989. He has served
as the Chairman of the Board of Directors since 1982, President since 1992, and
Chief Executive Officer of MDS since 1989. He has served as Chairman of the
Board of Directors of MDIC since 1982, Chief Executive Officer of MDIC since
1989, and President of MDIC since 1992. Dr. Benson is an obstetrician/
gynecologist practicing in Springfield, Missouri.
Gary L. Robinson, M.D., age 60, has been a member of the Board of Directors
of the Company since 1994, MDA since 1976 and of MDS and MDIC since 1982. He has
served as Vice President of the Company since 1994, MDA since 1976 and as Vice
President of MDS and MDIC since 1982. Dr. Robinson is an obstetrician/
gynecologist practicing in Springfield, Missouri, and is affiliated with the
Family Residency Program at Cox Health Systems in Springfield, Missouri.
John J. Stamatis, M.D., age 55, has been a member of the Board of Directors
of the Company since 1994, MDA since 1976 and of MDS and MDIC since 1982. He has
served as Vice President of the Company since 1994, MDA since 1979 and of MDS
and MDIC since 1982. Dr. Stamatis is a thoracic and cardiovascular surgeon
practicing in Springfield, Missouri.
David W. Brown, M.D., age 58, has been a member of the Board of Directors
of the Company since 1994, MDA since 1976 and of MDS and MDIC since 1982. He has
served as Treasurer of the Company since 1994, MDA since 1979 and of MDS and
MDIC since 1982. Dr. Brown is an orthopedic surgeon practicing in Springfield,
Missouri.
Arlen D. Winsky, M.D., age 59, has been a member of the Board of Directors
of the Company since 1994, MDA since 1976 and of MDS and MDIC since 1982. He has
served as Secretary of the Company since 1994, MDA since 1976 and of MDS and
MDIC since 1982. He was also Treasurer of MDA from 1976 to 1979. Dr. Winsky is a
plastic surgeon practicing in Springfield, Missouri.
Geri H. Morrison, CPA, MBA, age 41, has been a member of the Board of
Directors, Assistant Secretary and Chief Operating Officer of the Company since
1994. She has been Chief Operating Officer of MDA, MDS and MDIC since 1989. She
has been Assistant Treasurer of MDA since 1988 and Assistant Secretary of MDS
and MDIC since 1992. She has been a director of MDA since 1995 and of MDIC since
1991. Ms. Morrison received a B.S. in Accounting from Southwest Missouri State
University in 1980 and an M.B.A. from Drury College in 1993. Ms. Morrison was
Comptroller from 1987 to 1988, and Chief Financial Officer from 1988 to 1989,
for MDA, MDS and MDIC. Prior to that time, Ms. Morrison was with Baird, Kurtz &
Dobson in Springfield, Missouri.
Samuel J. Pippin, CPA, MBA, age 41, has been Principal Financial Officer
and Principal Accounting Officer of the Company since 1994. Mr. Pippin has been
Director of Accounting and Finance of MDA, MDS and MDIC since 1989. He has been
Assistant Secretary of MDA since 1993 and Assistant Treasurer of MDIC since
1992. He has been a director of MDA since 1995 and of MDIC since 1991. Mr.
Pippin received a B.S. in Accounting from Southwest Missouri State University in
1985 and an M.B.A. from Drury College in 1995. Prior to that time, Mr. Pippin
was employed with Baird, Kurtz & Dobson in Springfield, Missouri.
37
<PAGE>
Item 11. Executive Compensation
--------------------------------
Cash Compensation
The following table sets forth information concerning compensation paid for
each of the three years ended December 31, 1996 with respect to the Company's
chief executive officer and each other executive officer whose annual salary and
bonus, taken on a consolidated basis, exceed $100,000.
<TABLE>
<CAPTION>
Annual Compensation
-------------------------------------------
All Other
Name and Principal Position Year Salary Bonus Compensation
- --------------------------- ---- ------ ----- ------------
<S> <C> <C> <C> <C>
Ronald G. Benson, M.D., 1996 $129,387 $75,000 (1) $36,850 (2)
Chairman of the Board, 1995 $125,867 $75,000 (1) $32,703 (3)
President and Chief 1994 $122,581 $75,000 (1) $28,485 (4)
Executive Officer
Geri H. Morrison, CPA, MBA, 1996 $151,449 $80,387 (5) $31,106 (2)
Chief Operating Officer 1995 $131,123 $80,378 (5) $23,676 (6)
1994 $124,075 $80,338 (5) $17,620 (7)
</TABLE>
(1) Reflects contribution to the five-year executive compensation plan
instituted in 1993. See "Executive Compensation Plan" below for
additional detail.
(2) Includes $8,400 in Company director's fees, $3,600 in MDA director's
fees and contributions to the two MDS qualified defined contribution
plans.
(3) Includes $4,200 in Company director's fees, $3,600 in MDA director's
fees and contributions to the two MDS qualified defined contribution
plans.
(4) Includes $3,600 in MDA director's fees and contributions to the two
MDS qualified defined contribution plans.
(5) Includes $65,000 contribution to the five-year executive compensation
plan instituted in 1993. See "Executive Compensation Plan" below for
additional detail.
(6) Includes $4,200 in Company director's fees, $1,800 in MDA director's
fees and contributions to the two MDS qualified defined contribution
plans.
(7) Reflects contributions to the two MDS qualified defined contribution
plans.
Since July of 1995 the six Directors of the Company each has received $700
per month compensation for their service in that capacity.
The nine Directors of MDA each receives $300 per month compensation for
their service in that capacity.
Pension Plan
In 1984, MDS adopted the "Medical Defense Services Corp. Integrated Money
Purchase Pension Plan And Trust Agreement" (the "Pension Plan"), which was
amended and restated in 1990. MDS makes contributions for each participant in an
amount equal to 10% of all compensation paid to the participant during the plan
year. The Pension Plan provides "integration level" contributions of an
additional 4.3% for all compensation above the integration level (currently set
at $35,000). Except for qualified "rollover contributions", the Pension Plan
does not permit or require participants to make voluntary contributions. All
employees who are 21 years of age and have attained 200 hours of service with
MDS are eligible to participate in the Pension Plan. Both MDA and MDIC are
participating employers in the Pension Plan.
38
<PAGE>
401(k) Plan
Effective January 1, 1991, MDS adopted the "Medical Defense Services Corp.
401(k) Plan" (the "401(k) Plan"). Under the 401(k) Plan, employees may make
deferred salary contributions in an amount up to the limit allowed by applicable
law of compensation they receive for the plan year. MDS will make a matching
contribution of 100% of the amount contributed by the employee, up to 6% of each
employee's compensation for the year. All employees who are 21 years of age and
have two months of service with MDS are eligible to participate in the 401(k)
Plan. Both MDA and MDIC are participating employers in the Pension Plan.
Executive Compensation Plan
In order to secure the continued employment of certain key employees, MDS
in 1993 adopted the "Medical Defense Services Corp. Executive Compensation Plan"
and related "Executive Compensation Trust Agreement" (collectively, the "Secular
Trust"). The Secular Trust terminates on December 31, 1997. The Board of
Directors of MDS designated by resolution those employees of MDS who may
participate in the Secular Trust. An employee is entitled to participate only if
the employee is employed on December 31 of a Plan Year as that term is defined
in the Secular Trust. Those employees who are entitled to participate may
receive a cash benefit or elect to have MDS pay such benefit directly to a Trust
maintained pursuant to the Secular Trust. The employee designates the
beneficiary of the Trust maintained pursuant to the Secular Trust. An employee's
participation in the Secular Trust terminates upon the employee's termination of
employment with MDS.
Item 12. Security Ownership of Certain Beneficial Owners and Management
-----------------------------------------------------------------------
<TABLE>
<CAPTION>
PREFERRED STOCK CLASS A COMMON STOCK
----------------- --------------------
# OF % OF ALL # OF % OF ALL
SHARES SHARES SHARES SHARES
------ -------- ------ --------
<S> <C> <C> <C> <C>
RONALD G. BENSON 38,399 0.417% 142,857 14.286%
GARY L. ROBINSON 15,474 0.168% 142,857 14.286%
JOHN J. STAMATIS 30,574 0.332% 142,857 14.286%
DAVID W. BROWN 30,429 0.330% 142,857 14.286%
ARLEN D. WINSKY 20,765 0.225% 142,857 14.286%
GERI H. MORRISON 0 0.000% 142,857 14.286%
ROBERT E. MORRISON 0 0.000% 35,714 3.571%
SAMUEL J. PIPPIN 0 0.000% 35,714 3.571%
DAVID W. JACKSON 0 0.000% 35,714 3.571%
WILLIAM H. PENNINGER, JR 0 0.000% 35,714 3.571%
------- ----- ------- -------
135,641 1.472% 999,998 100.000%
======= ===== ======= =======
</TABLE>
None of the persons listed above owns any Class B Common Stock. The
Company is not aware of any person or entity which owns or has beneficial
ownership of more than 5% of the Preferred Stock. All of the holders of Class A
Common Stock are set forth above.
As of March 17, 1997, two shareholders had converted a total of 16,615
shares of Preferred Stock to 33,230 shares of Class B Common Stock. As of March
17, 1997, that constituted all of the shares of Class B Common Stock issued and
outstanding.
39
<PAGE>
Item 13. Certain Transactions and Relationships
-----------------------------------------------
During all or some portion of 1996 and 1995, each of Ronald G. Benson, Gary
L. Robinson, John J. Stamatis, David W. Brown and Arlen D. Winsky are or were
named insureds under a policy or contract of professional liability insurance
issued by MDA for which premiums attributable to such individual were earned by
MDA. All policies on which such persons were a named insured were made in the
ordinary course of business, did not involve more than the normal underwriting
risks or present other unfavorable features and were made on substantially the
same terms as those prevailing at the same time for comparable policies issued
to unaffiliated persons.
Other than as stated above, none of the Directors or Executive Officers of
the Company, MDA, MDS or MDIC, or the corporations and firms with which such
persons are associated, currently maintains or has maintained since the
beginning of the last fiscal year, any significant business or personal
relationship with the Company or MDA other than such as may arise by virtue of
his or her position or positions with the Company, MDA, MDS or MDIC.
PART IV
Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K
-------------------------------------------------------------------------
(a) Financial Statements and Exhibits
1. Financial Statements
See accompanying Index to Consolidated Financial Statements in
Item 8.
2. Financial Statement Schedules
See accompanying Index to Consolidated Financial Statements
in Item 8. Schedules not in the accompanying index have been
omitted because they are not applicable.
3. Exhibits
Exhibits required to be filed by Item 601 of Regulation S-K
are listed in the Exhibit Index attached hereto, which is
incorporated herein by reference. Set forth below is a list
of management contracts and compensatory plans and
arrangements required to be filed as exhibits to this form
by Item 14 (c).
10.3 -- Amended and Restated Employment Agreement between
Ronald G. Benson and Medical Defense Services Corp.,
dated January 1, 1993.
10.4 -- Amended and Restated Employment Agreement between
Geraldine Hatfield (Morrison) and Medical Defense
Services Corp., dated January 1, 1993
10.5 -- Amended and Restated Employment Agreement between
Arlen D. Winsky and Medical Defense Services Corp.,
dated January 1, 1993.
10.6 -- Amended and Restated Employment Agreement between
David W. Brown and Medical Defense Services Corp.,
dated January 1, 1993.
10.7 -- Amended and Restated Employment Agreement between
Gary L. Robinson and Medical Defense Services Corp.,
dated January 1, 1993.
40
<PAGE>
Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K,
--------------------------------------------------------------------------
continued:
----------
10.8 -- Amended and Restated Employment Agreement between John J.
Stamatis and Medical Defense Services Corp., dated
January 1, 1993.
10.9 -- Medical Defense Services Corp. Integrated Money Purchase
Pension and Trust Agreement, between Medical Defense
Services Corp. and Boatmen's Trust Company, as amended,
dated December 31, 1990.
10.10 -- Carnahan, Evans, Cantwell & Brown, P.C. Defined
Contribution Prototype Plan and Trust Agreement, adopted
December 31, 1990.
10.11 -- Medical Defense Services Corp. Executive Compensation
Plan, dated October 15, 1993.
10.13 -- Form of Employment Guaranty Agreement by Medical Defense
Holding Co. guaranteeing existing Medical Defense
Services Corp.'s employment agreements.
See Accompanying Exhibit Index for additional Exhibits
incorporated by reference.
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the last quarter of
1996.
(c) Exhibits
See Item 14(a)3 above.
41
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
Dated: March 17, 1997 MEDICAL DEFENSE HOLDING CO.
By: /s/ Ronald G. Benson
---------------------------------
Ronald G. Benson
President, Director and
Chairman of the Board
(Principal Executive Officer)
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.
Signature Title Date
- --------- ----- ----
/s/ Ronald G. Benson President, Director and March 17, 1997
- --------------------------- Chairman of the Board
Ronald G. Benson (Principal Executive Officer)
/s/ Arlen D. Winsky Secretary and Director March 17, 1997
- ---------------------------
Arlen D. Winsky
Vice President and Director March __, 1997
- ---------------------------
Gary L. Robinson
/s/ John J. Stamatis Vice President and Director March 17, 1997
- ---------------------------
John J. Stamatis
/s/ David W. Brown Treasurer and Director March 17, 1997
- ---------------------------
David W. Brown
/s/ Geri H. Morrison Assistant Secretary, Chief March 17, 1997
- --------------------------- Operating Officer and Director
Geri H. Morrison
/s/ Samuel J. Pippin Director of Accounting and March 17, 1997
- --------------------------- Finance (Principal Financial
Samuel J. Pippin Officer and Principal Accounting
Officer)
42
<PAGE>
Supplemental Information to be Furnished with Reports Filed Pursuant to Section
15(d) of the Act by Registrants Which Have Not Registered Securities Pursuant to
Section 12 of the Act.
The Registrant currently plans to mail an Annual Report for 1996 to security
holders in April, 1997. At that time, four copies will be furnished to the
Securities and Exchange Commission. No proxy statement, form of proxy, or other
proxy soliciting material has been sent to the Registrant's security holders
with respect to any annual or other meeting of security holders.
43
<PAGE>
Report of Independent Accountants
To the Board of Directors
Medical Defense Holding Co. and
Subsidiaries:
Our report on the consolidated financial statements of Medical Defense Holding
Co. and Subsidiaries is included on page 15 of this Form 10-K. In connection
with our audits of such financial statements, we have also audited the related
financial statement schedules listed in the index on page 14 of this Form 10-K.
In our opinion, the financial statement schedules referred to above, when
considered in relation to the basic financial statements taken as a whole,
present fairly, in all material respects, the information required to be
included therein.
COOPERS & LYBRAND L.L.P.
St. Louis, Missouri
February 21, 1997
S-1
<PAGE>
SCHEDULE I
MEDICAL DEFENSE HOLDING CO. AND SUBSIDIARIES
SUMMARY OF INVESTMENTS
As of December 31, 1996, 1995 and 1994
(Dollars in Thousands)
_________
<TABLE>
<CAPTION>
1996 1995 1994
----------------------------- ----------------------------- -----------------------------
Balance Balance Balance
Amortized Market Sheet Amortized Market Sheet Amortized Market Sheet
Cost Value Amount Cost Value Amount Cost Value Amount
--------- -------- -------- --------- -------- -------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Fixed Maturities:
Bonds:
United States Government
and Government Agencies
and Authorities $69,960 $69,585 $69,585 $73,486 $74,606 $74,606 $69,518 $64,918 $64,918
Corporate Securities 6,372 6,412 6,412 6,582 6,793 6,793 8,792 8,326 8,326
Other debt securities 2,820 2,793 2,793 2,877 2,860 2,860 2,332 2,187 2,187
------- ------- ------- ------- ------- ------- ------- ------- -------
Total fixed maturities 79,152 78,790 78,790 82,945 84,259 84,259 80,642 75,431 75,431
Short-term investments 4,507 4,509 4,509 7,484 7,489 7,489 2,940 2,940 2,940
------- ------- ------- ------- ------- ------- ------- ------- -------
Total investments $83,659 $83,299 $83,299 $90,429 $91,748 $91,748 $83,582 $78,371 $78,371
======= ======= ======= ======= ======= ======= ======= ======= =======
</TABLE>
S-2
<PAGE>
SCHEDULE II
MEDICAL DEFENSE HOLDING CO. AND SUBSIDIARIES
Condensed Financial Information of Registrant
Balance Sheet
(Parent Company Only)
December 31, 1996 and 1995
(dollars in thousands)
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
Assets:
Cash and cash equivalents............................ $ 316 $ 347
Investment in subsidiaries........................... 17,644 26,487
Federal income tax recoverable....................... 2,379
Other Assets......................................... 1,501 2,724
------- -------
Total assets....................................... $21,840 $29,558
======= =======
Liabilities:
Accrued Liabilities.................................. $ 5 $ 1
------- -------
Total liabilities.................................. 5 1
------- -------
Stockholder's equity:
Preferred Stock...................................... 9,209 12,000
Common Stock......................................... 510 500
Additional paid-in capital........................... 1,669
Retained earnings.................................... 10,447 17,057
------- -------
Total stockholder's equity......................... 21,835 29,557
------- -------
Total liabilities and stockholders' equity............. $21,840 $29,558
======= =======
</TABLE>
See Notes to Condensed Financial Information of Registrant.
S-3
<PAGE>
SCHEDULE II
MEDICAL DEFENSE HOLDING CO. AND SUBSIDIARIES
Condensed Financial Information of Registrant - (Continued)
Statement of Operations
(Parent Company Only)
For the Years Ended December 31, 1996 and 1995
(dollars in thousands, except per share data)
<TABLE>
<CAPTION>
1996 1995
-------- ------
Revenues:
<S> <C> <C>
Earnings of subsidiaries............................ $(5,494) $1,825
Investment Income................................... 142 27
------- ------
Total revenues.................................... (5,352) 1,852
Total expenses........................................ 125 36
------- ------
Income (loss) before taxes............................ (5,477) 1,816
Federal income tax.................................... 24 0
------- ------
Net income............................................ $(5,501) $1,816
======= ======
Net income per share.................................. $ (0.23) $ 0.05
======= ======
</TABLE>
See Notes to Condensed Financial Information of Registrant.
S-4
<PAGE>
SCHEDULE II
MEDICAL DEFENSE HOLDING CO. AND SUBSIDIARIES
Condensed Financial Information of Registrant - (Continued)
Statement of Cash Flows
(Parent Company Only)
For the Years Ended December 31, 1996 and 1995
(dollars in thousands)
<TABLE>
<CAPTION>
Cash flows from operating activities: 1996 1995
---- ----
<S> <C> <C>
Net income (loss)................................... $ (5,501) $ 1,816
-------- -------
Adjustments to reconcile net income to net cash
provided by operating activities:
Dividends received from subsidiaries over
subsidiaries' earnings............................ 5,494 778
Changes in other assets and accrued liabilities..... (274) (36)
-------- -------
Net cash provided by operating activities......... (281) 2,558
-------- -------
Cash flows from investing activities:
Proceeds from short-term investments................ 13,300 0
Purchase of short-term investments.................. (11,937) (2,711)
-------- -------
Net cash used by investing activities............. 1,363 (2,711)
-------- -------
Cash flows from financing activities:
Purchase of preferred stock......................... 1,113 0
Proceeds from common stock issued................... 0 500
-------- -------
Total cash provided............................... 31 347
Cash and cash equivalents, beginning of period........ 347 0
-------- -------
Cash and cash equivalents, end of period.............. $ 316 $ 347
======== =======
</TABLE>
- ------------
Notes to Condensed Financial Information of Registrant.
(1) The Company was formed on November 28, 1994 and did not engage in any
significant activity prior to its acquisition of Medical Defense
Associates on June 26, 1995, therefore, the financial statements for
years prior to 1995 have been omitted.
(2) The condensed financial information of registrant should be read in
conjunction with the Consolidated Financial Statements and Notes to
Consolidated Financial Statements included elsewhere herein.
S-5
<PAGE>
SCHEDULE IV
MEDICAL DEFENSE HOLDING CO. AND SUBSIDIARIES
REINSURANCE
For the Years Ended December 31, 1996, 1995 and 1994
(Dollars in Thousands)
--------------
<TABLE>
<CAPTION>
Percentage
Gross Ceded to Assumed Net of Amount
Premiums Other From Other Premiums Assumed
Written Companies Companies Written to Net
-------- ---------- ---------- -------- -----------
<S> <C> <C> <C> <C> <C>
1996
Medical Malpractice $12,526 $(196) $-0- $12,722 0%
======= ===== ==== ======= =
1995
Medical Malpractice $13,890 $ (70) $-0- $13,960 0%
======= ===== ==== ======= =
1994
Medical Malpractice $14,212 $ (45) $-0- $14,257 0%
======= ===== ==== ======= =
</TABLE>
Footnote:
Medical Defense Holding Co. amounts ceded to other companies reflect
current year adjustments in retrospectively rated reinsurance contracts
which remain in effect for policies from November 1, 1980 through October
31, 1987.
S-6
<PAGE>
SCHEDULE V
MEDICAL DEFENSE HOLDING CO. AND SUBSIDIARIES
VALUATION AND QUALIFYING ACCOUNTS
GROSS OF REINSURANCE
For the Years Ended December 31, 1996, 1995 and 1994
(Dollars in Thousands)
-------------
<TABLE>
<CAPTION>
Additions Deductions
----------------------- ------------------------------
Balance, Charged to Charged to Losses and Retrospective Balance,
December 31, Costs and Other Loss Adjustment Premiums Paid December 31,
Description 1995 Expenses Accounts Expenses Paid to Reinsurers 1996
- ------------------------- ------------ ----------- ---------- --------------- -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Unpaid losses and loss
adjustment expenses $65,660 $19,947 $22,402 $63,205
Retrospective premiums
payable to reinsurers $ 2,195 $ (196) $(29) $ 1,970
Additions Deductions
----------------------- ------------------------------
Balance, Charged to Charged to Losses and Retrospective Balance,
December 31, Costs and Other Loss Adjustment Premiums Paid December 31,
Description 1994 Expenses Accounts Expenses Paid to Reinsurers 1995
- ------------------------- ------------ ----------- ---------- --------------- -------------- ------------
Unpaid losses and loss
adjustment expenses $65,803 $15,637 $15,780 $65,660
Retrospective premiums
payable to reinsurers $ 2,586 $ (70) $321 $ 2,195
Additions Deductions
----------------------- ------------------------------
Balance, Charged to Charged to Losses and Retrospective Balance,
December 31, Costs and Other Loss Adjustment Premiums Paid December 31,
Description 1993 Expenses Accounts Expenses Paid to Reinsurers 1994
- ------------------------- ------------ ----------- ---------- --------------- -------------- ------------
Unpaid losses and loss
adjustment expenses $70,436 $12,504 $17,137 $65,803
Retrospective premiums
payable to reinsurers $ 3,001 $ (45) $370 $ 2,586
</TABLE>
S-7
<PAGE>
SCHEDULE VI
MEDICAL DEFENSE HOLDING CO. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION CONCERNING
PROPERTY & CASUALTY INSURANCE OPERATIONS
For the Years Ended December 31, 1996, 1995 and 1994
(Dollars in Thousands)
-------------
<TABLE>
<CAPTION>
1996 1995 1994
---- ---- ----
<S> <C> <C> <C>
Deferred policy acquisition costs $ 375 $ 60 $ 0
Reserve for unpaid losses
and loss adjustment expenses 63,205 65,660 65,803
Unearned premiums 7,572 8,055 9,210
Earned premiums (gross of reinsurance) 13,004 15,113 13,463
Net investment income 5,297 5,523 5,311
Losses and loss adjustment
expenses (gross of reinsurance)
incurred related to:
Current years 15,802 18,115 16,628
Prior years 4,145 (2,478) (4,124)
Paid losses and loss adjustment
expenses 22,402 15,780 17,137
Gross premiums written 12,526 13,890 14,212
</TABLE>
S-8
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit Page
No. Description No.
--- ----------- ---
<C> <S> <C>
3.1 -- Articles of Incorporation of Medical Defense Holding Co.
(Filed as Exhibit 3.1 to the Registrant's Registration
Statement on Form S-1 (file #33-87444) and hereby
incorporated by reference.)...................................
3.2 -- Bylaws of Medical Defense Holding Co. (Filed as Exhibit
3.2 to the Registrant's Registration Statement on
Form S-1 (file #33-87444) and hereby incorporated by
reference.)...................................................
4.1 -- Right of First Refusal Agreement (Filed as Exhibit 4.1
to the Registrant's Registration Statement on Form S-1
(file #33-87444) and hereby incorporated by reference.).......
4.2 -- Specimen Stock Certificate for Preferred Stock (Filed
as Exhibit 4.2 to the Registrant's Registration Statement
on Form S-1 (file #33-87444) and hereby incorporated by
reference.)...................................................
4.3 -- Specimen Stock Certificate for Class A Common Stock
(Filed as Exhibit 4.3 to the Registrant's Registration
Statement on Form S-1 (file #33-87444) and hereby
incorporated by reference.)...................................
4.4 -- Specimen Stock Certificate for Class B Common Stock
(Filed as Exhibit 4.4 to the Registrant's Registration
Statement on Form S-1 (file #33-87444) and hereby
incorporated by reference.)...................................
10.1 -- 1983 Management Agreement between Medical Defense
Associates and Medical Defense Services Corp., as
amended (Filed as Exhibit 10.1 to the Registrant's
Registration Statement on Form S-1 (file #33-87444)
and hereby incorporated by reference.)........................
10.2 -- 1983 Management Agreement between Medical Defense
Insurance Company and Medical Defense Services Corp.,
as amended (Filed as Exhibit 10.2 to the Registrant's
Registration Statement on Form S-1 (file #33-87444)
and hereby incorporated by reference.)........................
10.3 -- Amended and Restated Employment Agreement between
Ronald G. Benson and Medical Defense Services Corp.,
dated January 1, 1993 (Filed as Exhibit 10.3 to the
Registrant's Registration Statement on Form S-1 (file
#33-87444) and hereby incorporated by reference.).............
10.4 -- Amended and Restated Employment Agreement between
Geraldine Hatfield (Morrison) and Medical Defense
Services Corp., dated January 1, 1993 (Filed as
Exhibit 10.4 to the Registrant's Registration Statement
on Form S-1 (file #33-87444) and hereby incorporated
by reference.)................................................
10.5 -- Amended and Restated Employment Agreement between
Arlen D. Winsky and Medical Defense Services Corp.,
dated January 1, 1993 (Filed as Exhibit 10.5 to the
Registrant's Registration Statement on Form S-1
(file #33-87444) and hereby incorporated by reference.).......
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit Page
No. Description No.
--- ----------- ---
<C> <S> <C>
10.6 -- Amended and Restated Employment Agreement between
David W. Brown and Medical Defense Services Corp.,
dated January 1, 1993 (Filed as Exhibit 10.6 to the
Registrant's Registration Statement on Form S-1
(file #33-87444) and hereby incorporated by reference.).......
10.7 -- Amended and Restated Employment Agreement between
Gary L. Robinson and Medical Defense Services Corp.,
dated January 1, 1993 (Filed as Exhibit 10.7 to the
Registrant's Registration Statement on Form S-1
(file #33-87444) and hereby incorporated by reference.).......
10.8 -- Amended and Restated Employment Agreement between
John J. Stamatis and Medical Defense Services Corp.,
dated January 1, 1993 (Filed as Exhibit 10.8 to the
Registrant's Registration Statement on Form S-1
(file #33-87444) and hereby incorporated by reference.).......
10.9 -- Medical Defense Services Corp. Integrated Money
Purchase Pension and Trust Agreement, between, Medical
Defense Services Corp. and Boatmen's Trust Company, as
amended, dated December 31, 1990 (Filed as Exhibit 10.9
to the Registrant's Registration Statement on Form S-1
(file #33-87444) and hereby incorporated by reference.).......
10.10 -- Carnahan, Evans, Cantwell & Brown, P.C. Defined
Contribution Prototype Plan and Trust Agreement,
adopted December 31, 1990 (Filed as Exhibit 10.10
to the Registrant's Registration Statement on Form S-1
(file #33-87444) and hereby incorporated by reference.).......
10.11 -- Medical Defense Services Corp. Executive Compensation
Plan, dated October 15, 1993 (Filed as Exhibit 10.11 to
the Registrant's Registration Statement on Form S-1
(file #33-87444) and hereby incorporated by reference.).......
10.12 -- Form of Deposit Agreement between Medical Defense
Associates and Central Bank, Jefferson City, Missouri
(Filed as Exhibit 10.12 to the Registrant's Registration
Statement on Form S-1 (file #33-87444) and hereby
incorporated by reference.)...................................
10.13 -- Form of Employment Guaranty Agreement by Medical Defense
Holding Co. guaranteeing existing Medical Defense
Services Corp.'s employment agreements (Filed as Exhibit
10.13 to the Registrant's Annual Report on Form 10-K for
the year ended December 31, 1995 and hereby incorporated
by reference.)................................................
11.1 -- Statement re computation of per share earnings................
21.1 -- Subsidiaries of the registrant................................
28.1 -- Information from reports furnished to state insurance
regulatory authorities........................................
</TABLE>
<PAGE>
EXHIBIT 11.1
MEDICAL DEFENSE HOLDING CO. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
For the Years Ended December 31, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
Weighted average common shares outstanding................. 1,019,602 1,019,602
Weighted average common stock options
expressed as common stock equivalents.................... 23,281,244 23,980,378
Weighted average common shares outstanding................. 24,300,846 24,999,980
Net (loss) income (applicable to common stock) (1)........ $(5,501,042) $ 1,198,665
Earnings per common share (1).............................. $ (0.23) $ 0.05
=========== ===========
</TABLE>
- ------------
(1) Net income per common share is computed using net income divided by the
weighted average number of common shares and common share equivalents
outstanding. All of the Company's outstanding shares of preferred stock are
convertible to common stock at a ratio of two shares of common stock for
each one share of preferred stock. Since the Company's preferred stock has
no stated dividend rate, and thus, no effective yield, these securities are
considered common stock equivalents for the purpose of computing net income
per common share.
Other than the preferred stock discussed above, the Company does not have
any other potentially dilutive stocks. Therefore, the computations for
fully diluted net income per common share are not presented since the
results do not differ from primary net income per common share.
Net income per share information is not computed for the periods ending
December 31, 1994 and 1993, as the conversion of MDA to a stock insurance
company and a wholly-owned subsidiary of MDHC was not completed until June
26, 1995, and therefore, all of the earnings for those periods are
attributable to the preconversion earnings of MDA. In addition, the net
income of $617,713 recorded by the subsidiary as of June 30, 1995, is
virtually entirely attributable to preconversion results and, therefore, is
also excluded for 1995 earnings per share presentation purposes.
<PAGE>
EXHIBIT 21.1
MEDICAL DEFENSE HOLDING CO. AND SUBSIDIARIES
SUBSIDIARIES OF REGISTRANT
<TABLE>
<CAPTION>
% of Voting Securities
Jurisdiction of Owned by its
Name of Corporation Incorporation Immediate Parent
------------------- --------------- ----------------------
<S> <C> <C>
Medical Defense Associates............................... Missouri 100%
Medical Defense Services Corp............................ Missouri 100%
Medical Defense Insurance Company........................ Missouri 100%
</TABLE>
<PAGE>
EXHIBIT 28.1
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - ANALYSIS OF LOSSES AND LOSS EXPENSES
Notes to Schedule P
(1) The Parts of Schedule P:
Part 1 - detailed information on losses and loss expenses.
Part 2 - history of incurred losses and allocated expenses.
Part 3 - history of loss and allocated expense payments.
Part 4 - history of bulk and incurred-but-not reported reserves.
Part 5 - history of claims.
Part 6 - history of premiums earned.
Part 7 - history of loss sensitive contracts.
Schedule P Interrogatories
(2) Lines of business A through M, R, and S are groupings of the lines of
business used on the state page.
(3) Reinsurance A, B, C, and D (lines N to Q) are:
Reinsurance A = nonproportional property (1988 and subsequent)
Reinsurance B = nonproportional liability (1988 and subsequent)
Reinsurance C = financial lines (1988 and subsequent)
Reinsurance D = old Schedule O line 30 (1987 and prior)
(4) Parts 2 and 4 are gross of all discounting, including tabular
discounting. Part 1 is gross of only non-tabular discounting,
which is reported in Columns 31 and 32 of Part 1. The tabular
discount, if any, is reported in the Notes to Financial Statements
which will reconcile Part 1 with Parts 2 and 4.
SCHEDULE P - PART 1 - SUMMARY
($000 omitted)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Premiums Earned Loss and Loss Expense Payments
1 ----------------------------------------------------------------------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss 9
in Which Expense Payments
Premiums Were --------------------------------------------------------- Salvage
Earned and Direct Net 5 6 7 8 and
Losses Were and Ceded (2 - 3) Direct Direct Subrogation
Incurred Assumed and Assumed Ceded and Assumed Ceded Received
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior X X X X X X X X X 3,183 370 340 65 0
2. 1987 18,436 2,748 15,688 2,932 125 1,365 13 0
3. 1988 26,628 0 26,628 6,522 0 2,107 0 0
4. 1989 29,776 0 29,776 12,567 0 3,056 0 0
5. 1990 25,212 0 25,212 11,847 0 3,464 0 0
6. 1991 18,957 0 18,957 10,502 0 3,787 0 0
7. 1992 14,663 0 14,663 7,848 0 2,969 0 0
8. 1993 15,654 0 15,654 5,918 0 2,564 0 0
9. 1994 13,063 0 13,063 5,435 0 1,661 0 0
10. 1995 14,780 0 14,780 4,168 0 1,316 0 0
11. 1996 12,814 0 12,814 0 0 214 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
12. Totals X X X X X X X X X 70,922 495 22,843 78 0
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------
1 ------------------------------- 12
Years 10 11
in Which Number of
Premiums Were Unallocated Total Claims
Earned and Loss Net Paid Reported -
Losses Were Expense (5 - 6 + 7 Direct and
Incurred Payments - 8 + 10) Assumed
------------------------------------------------------------
<S> <C> <C> <C>
1. Prior 0 3,088 X X X
2. 1987 390 4,549 X X X
3. 1988 632 9,261 X X X
4. 1989 886 16,509 X X X
5. 1990 1,039 16,350 X X X
6. 1991 1,068 15,357 X X X
7. 1992 959 11,776 X X X
8. 1993 881 9,363 X X X
9. 1994 867 7,963 X X X
10. 1995 809 6,293 X X X
11. 1996 566 780 X X X
- -------------------------------------------------------------
12. Totals 8,097 101,289 X X X
- -------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
Losses Unpaid Allocated Loss Expenses Unpaid
------------------------------------------------------------------------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
------------------------------------------------------------------------------------------------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior 4,039 1,319 57 21 1,283 440 18 7
2. 1987 853 120 18 3 285 40 6 1
3. 1988 768 0 8 0 256 0 3 0
4. 1989 596 0 33 0 199 0 11 0
5. 1990 755 0 3 0 251 0 1 0
6. 1991 2,023 0 31 0 674 0 10 0
7. 1992 2,542 0 14 0 847 0 5 0
8. 1993 5,439 0 83 0 1,813 0 28 0
9. 1994 7,166 0 67 0 2,389 0 22 0
10. 1995 9,358 0 254 0 3,119 0 85 0
11. 1996 10,123 0 270 0 3,375 0 90 0
- ------------------------------------------------------------------------------------------------------------------------------------
12. Totals 43,662 1,439 838 24 14,491 480 279 8
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding--
Subrogation Expenses and Expenses Direct
Anticipated Unpaid Unpaid and Assumed
----------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Prior 0 240 3,850 X X X
2. 1987 0 67 1,065 X X X
3. 1988 0 76 1,111 X X X
4. 1989 0 61 900 X X X
5. 1990 0 72 1,082 X X X
6. 1991 0 191 2,929 X X X
7. 1992 0 222 3,630 X X X
8. 1993 0 476 7,839 X X X
9. 1994 0 561 10,205 X X X
10. 1995 0 756 13,572 X X X
11. 1996 0 978 14,836 X X X
- -----------------------------------------------------------------------------------
12. Totals 0 3,700 61,019 X X X
- -----------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
Total Losses and Loss and Loss Expense Percentage
Loss Expenses Incurred (Incurred/Premiums Earned) Nontabular Discount
---------------------------------------------------------------------------------------------------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net and Assumed Ceded Net Loss Expense
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior X X X X X X X X X X X X X X X X X X 123 50
2. 1987 5,916 302 5,614 32.1 11.0 35.8 26 11
3. 1988 10,372 0 10,372 39.0 0.0 39.0 32 13
4. 1989 17,409 0 17,409 58.5 0.0 58.5 31 13
5. 1990 17,432 0 17,432 69.1 0.0 69.1 55 22
6. 1991 18,286 0 18,286 96.5 0.0 96.5 157 63
7. 1992 15,406 0 15,406 105.1 0.0 105.1 217 88
8. 1993 17,202 0 17,202 109.9 0.0 109.9 379 155
9. 1994 18,168 0 18,168 139.1 0.0 139.1 466 189
10. 1995 19,865 0 19,865 134.4 0.0 134.4 0 0
11. 1996 15,616 0 15,616 121.9 0.0 121.9 0 0
- ----------------------------------------------------------------------------------------------------------------------------
12. Totals X X X X X X X X X X X X X X X X X X 1,486 604
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------
Net Balance Sheet Reserves
33 After Discount
Inter-Company -----------------------------
Pooling 34 35
Participation Losses Loss Expenses
Percentage Unpaid Unpaid
- ----------------------------------------------------------
<S> <C> <C> <C>
1. Prior X X X 2,633 1,044
2. 1987 0.0 722 306
3. 1988 0.0 744 322
4. 1989 0.0 598 258
5. 1990 0.0 703 302
6. 1991 0.0 1,897 812
7. 1992 0.0 2,339 986
8. 1993 0.0 5,143 2,162
9. 1994 0.0 6,767 2,783
10. 1995 0.0 9,612 3,960
11. 1996 0.0 10,393 4,443
- ---------------------------------------------------------
12. Totals X X X 41,551 17,378
- ---------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 2 - SUMMARY
-----------------------------------------------------------------------------------------------------------------------
| 1 | Incurred Losses and Allocated Expenses Reported At Year End ($000 omitted)
| Years in Which |--------------------------------------------------------------------------------------------------
| Losses Were | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
|-------------------|-------------|-------------|-------------|-------------|-------------|-------------|-------------|
|<S> | <C> | <C> | <C> | <C> | <C> | <C> |<C> |
| 1. Prior | 35,196 | 45,854 | 45,094 | 45,602 | 43,669 | 42,415 | 39,884 |
| 2. 1987 | 4,904 | 3,682 | 5,633 | 5,579 | 5,259 | 5,655 | 5,305 |
| 3. 1988 | X X X | 10,402 | 11,127 | 11,534 | 9,933 | 10,203 | 9,646 |
| 4. 1989 | X X X | X X X | 18,590 | 17,082 | 15,566 | 15,572 | 16,729 |
| 5. 1990 | X X X | X X X | X X X | 18,498 | 18,521 | 16,803 | 16,960 |
| 6. 1991 | X X X | X X X | X X X | X X X | 19,819 | 18,359 | 17,799 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 17,483 | 16,863 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 15,076 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
|-----------------------------------------------------------------------------------------------------------------------
| 12. Totals
------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
| 1 | | Development |
| Years in Which |-----------------------------------------|-----------------------------|
| Losses Were | 9 | 10 | 11 | 12 | 13 |
| Incurred | 1994 | 1995 | 1996 | One Year | Two Year |
|-------------------|-------------|-------------|-------------|--------------|--------------|
| <S> | <C> | <C> | <C> | <C> | <C> |
| 1. Prior | 40,379 | 40,793 | 41,862 | 1,069 | 1,483 |
| 2. 1987 | 5,374 | 5,234 | 5,157 | (77)| (217)|
| 3. 1988 | 9,459 | 9,665 | 9,664 | (1)| 205 |
| 4. 1989 | 16,546 | 16,618 | 16,462 | (156)| (84)|
| 5. 1990 | 16,567 | 16,188 | 16,321 | 133 | (246)|
| 6. 1991 | 16,970 | 16,511 | 17,027 | 516 | 57 |
| 7. 1992 | 15,970 | 15,039 | 14,225 | (814)| (1,745)|
| 8. 1993 | 15,657 | 14,710 | 15,845 | 1,135 | 188 |
| 9. 1994 | 15,142 | 15,545 | 16,740 | 1,195 | 1,598 |
| 10. 1995 | X X X | 16,461 | 18,300 | 1,839 | X X X |
| 11. 1996 | X X X | X X X | 14,072 | X X X | X X X |
|-------------------|-----------------------------------------|--------------|--------------|
| 12. Totals | | 4,839 | 1,239 |
- --------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 3 - SUMMARY
- -----------------------------------------------------------------------------------------------------------------------
| |
| | Cumulative Paid Losses and Allocated Expenses At Year End ($000 omitted)
| 1 |--------------------------------------------------------------------------------------------------
| Years in Which | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Losses Were | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
| Incurred | | | | | | | |
|------------------ |-------------|-------------|-------------|-------------|-------------|-------------|-------------|
| <S> | <C> | <C> | <C> | <C> | <C> | <C> | <C> |
| 1. Prior | 000 | 10,299 | 15,115 | 23,024 | 27,187 | 30,103 | 31,103 |
| 2. 1987 | 94 | 336 | 1,080 | 1,781 | 2,515 | 3,603 | 3,691 |
| 3. 1988 | X X X | 110 | 711 | 1,740 | 4,904 | 6,524 | 7,360 |
| 4. 1989 | X X X | X X X | 294 | 2,355 | 7,341 | 13,055 | 13,752 |
| 5. 1990 | X X X | X X X | X X X | 356 | 3,586 | 7,570 | 10,261 |
| 6. 1991 | X X X | X X X | X X X | X X X | 262 | 4,076 | 7,256 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 357 | 2,866 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 282 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- -----------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------
| | 12 13 |
| | | Number of | Number of |
| 1 |-----------------------------------------| Claims | Claims |
| Years in Which | 9 | 10 | 11 | Closed With | Closed |
| Losses Were | 1994 | 1995 | 1996 | Loss | Without Loss |
| Incurred | | | | Payment | Payment |
|------------------ |-------------|-------------|-------------|--------------|--------------|
| <S> | <C> | <C> | <C> | <C> | <C> |
| 1. Prior | 32,769 | 35,164 | 38,252 | X X X | X X X |
| 2. 1987 | 4,029 | 4,137 | 4,159 | X X X | X X X |
| 3. 1988 | 7,750 | 8,580 | 8,629 | X X X | X X X |
| 4. 1989 | 15,073 | 15,295 | 15,623 | X X X | X X X |
| 5. 1990 | 13,837 | 14,340 | 15,311 | X X X | X X X |
| 6. 1991 | 10,266 | 13,726 | 14,289 | X X X | X X X |
| 7. 1992 | 7,038 | 8,890 | 10,817 | X X X | X X X |
| 8. 1993 | 1,388 | 3,775 | 8,482 | X X X | X X X |
| 9. 1994 | 408 | 2,466 | 7,096 | X X X | X X X |
| 10. 1995 | X X X | 786 | 5,484 | X X X | X X X |
| 11. 1996 | X X X | X X X | 214 | X X X | X X X |
- ---------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 4 - SUMMARY
- -----------------------------------------------------------------------------------------------------------------------
| 1 | Bulk and Incurred But Not Reported Reserves on Losses and Allocated Expenses at
| Years in Which |--------------------------------------------------------------------------------------------------
| Losses Were | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
|-------------------|-------------|-------------|-------------|-------------|-------------|-------------|-------------|
| <S> | <C> | <C> | <C> | <C> | <C> | <C> | <C> |
| 1. Prior | 14,944 | 14,484 | 3,527 | 1,830 | 877 | 523 | 343 |
| 2. 1987 | 2,685 | 646 | 505 | 655 | 388 | 296 | 166 |
| 3. 1988 | X X X | 400 | 330 | 499 | 240 | 263 | 43 |
| 4. 1989 | X X X | X X X | 145 | 482 | 304 | 261 | 151 |
| 5. 1990 | X X X | X X X | X X X | 75 | 284 | 268 | 65 |
| 6. 1991 | X X X | X X X | X X X | X X X | 56 | 256 | 127 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 37 | 207 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 699 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- -----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------
| 1 |Year End ($000 omitted) |
| Years in Which |------------------------------------------|
| Losses Were | 9 | 10 | 11 |
| Incurred | 1994 | 1995 | 1996 |
|-------------------|-------------|-------------|--------------|
| <S> | <C> | <C> | <C> |
| 1. Prior | 318 | 106 | 47 |
| 2. 1987 | 127 | 75 | 20 |
| 3. 1988 | 36 | 19 | 11 |
| 4. 1989 | 147 | 67 | 44 |
| 5. 1990 | 45 | 12 | 4 |
| 6. 1991 | 140 | 50 | 41 |
| 7. 1992 | 99 | 28 | 19 |
| 8. 1993 | 513 | 209 | 111 |
| 9. 1994 | 292 | 196 | 89 |
| 10. 1995 | X X X | 588 | 339 |
| 11. 1996 | X X X | X X X | 360 |
- ----------------------------------------------------------------
</TABLE>
75
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 1A - HOMEOWNERS/FARMOWNERS
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
| 1 | Premiums Earned | Loss and Loss Expense Payments |
| |-----------------------------------------|-----------------------------------------------------------|
| Years | 2 | 3 | 4 | Loss Payments | Allocated Loss |
| in Which | | | | | Expense Payments |
|Premiums Were| | | |-----------------------------|-----------------------------|
| Earned and | Direct | | Net | 5 | 6 | 7 | 8 |
| Losses Were | and | Ceded | (2 - 3) | Direct | | Direct | |
| Incurred | Assumed | | | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| | | | | | | | |
| 1. Prior | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
|12. Totals | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
| 1 | Loss and Loss Expense Payments | |
| |--------------------------------------------| |
| Years | 9 | 10 | 11 | 12 |
| in Which | | | | Number of |
|Premiums Were| Salvage | Unallocated | Total | Claims |
| Earned and | and | Loss | Net Paid | Reported - |
| Losses Were | Subrogation | Expense | (5 - 6 + 7 | Direct and |
| Incurred | Received | Payments | - 8 + 10) | Assumed |
|-------------|--------------|--------------|--------------|--------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | X X X |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|
|12. Totals | 0 | 0 | 0 | X X X |
- ---------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | Losses Unpaid | Allocated Loss Expenses Unpaid |
| |--------------------------------------------------------|----------------------------------------------------------|
| | Case Basis | Bulk + IBNR | Case Basis | Bulk + IBNR |
| |---------------------------|----------------------------|-----------------------------|----------------------------|
| | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| | Direct | | Direct | | Direct | | Direct | |
| | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| | | | | | | | | |
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
|12. Totals | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------
| | | | | |
| | | | | |
| | 21 | 22 | 23 | 24 |
| | | | | Number of |
| | Salvage | Unallocated | Total | Claims |
| | and | Loss | Net Losses |Outstanding -|
| | Subrogation | Expenses | and Expenses | Direct and |
| | Anticipated | Unpaid | Unpaid | Assumed |
|-------------|--------------|--------------|--------------|-------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|-------------|
|12. Totals | 0 | 0 | 0 | 0 |
- --------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
| | Total Losses and | Loss and Loss Expense Percentage |
| | Loss Expenses Incurred | (Incurred/Premiums Earned) |
| |-----------------------------------------|--------------------------------------------|
| | 25 | 26 | 27 | 28 | 29 | 30 |
| | | | | | | |
| | Direct | | | Direct | | |
| | and Assumed | Ceded | Net | and Assumed | Ceded | Net |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| | | | | | | |
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1987 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 3. 1988 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 4. 1989 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 5. 1990 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 6. 1991 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 7. 1992 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 8. 1993 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 9. 1994 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|10. 1995 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|11. 1996 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
|12. Totals | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
| | | | Net Balance Sheet Reserves |
| | Nontabular Discount | 33 | After Discount |
| |-----------------------------| |-----------------------------|
| | 31 | 32 |Inter-Company | 34 | 35 |
| | | | Pooling | | Loss |
| | | Loss |Participation | Losses | Expenses |
| | Loss | Expense | Percentage | Unpaid | Unpaid |
|-------------|--------------|--------------|--------------|--------------|--------------|
| | | | | | |
| 1. Prior | 0 | 0 | X X X | 0 | 0 |
| 2. 1987 | 0 | 0 | 0.0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0.0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0.0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0.0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0.0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0.0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0.0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0.0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0.0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0.0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|--------------|
|12. Totals | 0 | 0 | X X X | 0 | 0 |
- ------------------------------------------------------------------------------------------
[NONE]
</TABLE>
76
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 1B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
| 1 | Premiums Earned | Loss and Loss Expense Payments |
| |-----------------------------------------|-----------------------------------------------------------|
| Years | 2 | 3 | 4 | Loss Payments | Allocated Loss |
| in Which | | | | | Expense Payments |
|Premiums Were| | | |-----------------------------|-----------------------------|
| Earned and | Direct | | Net | 5 | 6 | 7 | 8 |
| Losses Were | and | Ceded | (2 - 3) | Direct | | Direct | |
| Incurred | Assumed | | | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| | | | | | | | |
| 1. Prior | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
|12. Totals | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
| 1 | Loss and Loss Expense Payments | |
| |--------------------------------------------| |
| Years | 9 | 10 | 11 | 12 |
| in Which | | | | Number of |
|Premiums Were| Salvage | Unallocated | Total | Claims |
| Earned and | and | Loss | Net Paid | Reported - |
| Losses Were | Subrogation | Expense | (5 - 6 + 7 | Direct and |
| Incurred | Received | Payments | - 8 + 10) | Assumed |
|-------------|--------------|--------------|--------------|--------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | X X X |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|
|12. Totals | 0 | 0 | 0 | X X X |
- ---------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | Losses Unpaid | Allocated Loss Expenses Unpaid |
| |--------------------------------------------------------|----------------------------------------------------------|
| | Case Basis | Bulk + IBNR | Case Basis | Bulk + IBNR |
| |---------------------------|----------------------------|-----------------------------|----------------------------|
| | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| | Direct | | Direct | | Direct | | Direct | |
| | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| | | | | | | | | |
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
|12. Totals | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------
| | | | | |
| | | | | |
| | 21 | 22 | 23 | 24 |
| | | | | Number of |
| | Salvage | Unallocated | Total | Claims |
| | and | Loss | Net Losses |Outstanding -|
| | Subrogation | Expenses | and Expenses | Direct and |
| | Anticipated | Unpaid | Unpaid | Assumed |
|-------------|--------------|--------------|--------------|-------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|-------------|
|12. Totals | 0 | 0 | 0 | 0 |
- --------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
| | Total Losses and | Loss and Loss Expense Percentage |
| | Loss Expenses Incurred | (Incurred/Premiums Earned) |
| |-----------------------------------------|--------------------------------------------|
| | 25 | 26 | 27 | 28 | 29 | 30 |
| | | | | | | |
| | Direct | | | Direct | | |
| | and Assumed | Ceded | Net | and Assumed | Ceded | Net |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| | | | | | | |
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1987 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 3. 1988 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 4. 1989 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 5. 1990 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 6. 1991 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 7. 1992 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 8. 1993 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 9. 1994 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|10. 1995 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|11. 1996 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
|12. Totals | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
| | | | Net Balance Sheet Reserves |
| | Nontabular Discount | 33 | After Discount |
| |-----------------------------| |-----------------------------|
| | 31 | 32 |Inter-Company | 34 | 35 |
| | | | Pooling | | Loss |
| | | Loss |Participation | Losses | Expenses |
| | Loss | Expense | Percentage | Unpaid | Unpaid |
|-------------|--------------|--------------|--------------|--------------|--------------|
| | | | | | |
| 1. Prior | 0 | 0 | X X X | 0 | 0 |
| 2. 1987 | 0 | 0 | 0.0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0.0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0.0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0.0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0.0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0.0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0.0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0.0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0.0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0.0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|--------------|
|12. Totals | 0 | 0 | X X X | 0 | 0 |
- ------------------------------------------------------------------------------------------
[NONE]
</TABLE>
77
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 1C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
| 1 | Premiums Earned | Loss and Loss Expense Payments |
| |-----------------------------------------|-----------------------------------------------------------|
| Years | 2 | 3 | 4 | Loss Payments | Allocated Loss |
| in Which | | | | | Expense Payments |
|Premiums Were| | | |-----------------------------|-----------------------------|
| Earned and | Direct | | Net | 5 | 6 | 7 | 8 |
| Losses Were | and | Ceded | (2 - 3) | Direct | | Direct | |
| Incurred | Assumed | | | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| | | | | | | | |
| 1. Prior | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
|12. Totals | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
| 1 | Loss and Loss Expense Payments | |
| |--------------------------------------------| |
| Years | 9 | 10 | 11 | 12 |
| in Which | | | | Number of |
|Premiums Were| Salvage | Unallocated | Total | Claims |
| Earned and | and | Loss | Net Paid | Reported - |
| Losses Were | Subrogation | Expense | (5 - 6 + 7 | Direct and |
| Incurred | Received | Payments | - 8 + 10) | Assumed |
|-------------|--------------|--------------|--------------|--------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | X X X |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|
|12. Totals | 0 | 0 | 0 | X X X |
- ---------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | Losses Unpaid | Allocated Loss Expenses Unpaid |
| |--------------------------------------------------------|----------------------------------------------------------|
| | Case Basis | Bulk + IBNR | Case Basis | Bulk + IBNR |
| |---------------------------|----------------------------|-----------------------------|----------------------------|
| | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| | Direct | | Direct | | Direct | | Direct | |
| | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| | | | | | | | | |
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
|12. Totals | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------
| | | | | |
| | | | | |
| | 21 | 22 | 23 | 24 |
| | | | | Number of |
| | Salvage | Unallocated | Total | Claims |
| | and | Loss | Net Losses |Outstanding -|
| | Subrogation | Expenses | and Expenses | Direct and |
| | Anticipated | Unpaid | Unpaid | Assumed |
|-------------|--------------|--------------|--------------|-------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|-------------|
|12. Totals | 0 | 0 | 0 | 0 |
- --------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
| | Total Losses and | Loss and Loss Expense Percentage |
| | Loss Expenses Incurred | (Incurred/Premiums Earned) |
| |-----------------------------------------|--------------------------------------------|
| | 25 | 26 | 27 | 28 | 29 | 30 |
| | | | | | | |
| | Direct | | | Direct | | |
| | and Assumed | Ceded | Net | and Assumed | Ceded | Net |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| | | | | | | |
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1987 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 3. 1988 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 4. 1989 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 5. 1990 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 6. 1991 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 7. 1992 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 8. 1993 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 9. 1994 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|10. 1995 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|11. 1996 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
|12. Totals | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
| | | | Net Balance Sheet Reserves |
| | Nontabular Discount | 33 | After Discount |
| |-----------------------------| |-----------------------------|
| | 31 | 32 |Inter-Company | 34 | 35 |
| | | | Pooling | | Loss |
| | | Loss |Participation | Losses | Expenses |
| | Loss | Expense | Percentage | Unpaid | Unpaid |
|-------------|--------------|--------------|--------------|--------------|--------------|
| | | | | | |
| 1. Prior | 0 | 0 | X X X | 0 | 0 |
| 2. 1987 | 0 | 0 | 0.0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0.0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0.0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0.0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0.0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0.0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0.0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0.0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0.0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0.0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|--------------|
|12. Totals | 0 | 0 | X X X | 0 | 0 |
- ------------------------------------------------------------------------------------------
[NONE]
</TABLE>
78
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 1D - WORKERS' COMPENSATION
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
| 1 | Premiums Earned | Loss and Loss Expense Payments |
| |-----------------------------------------|-----------------------------------------------------------|
| Years | 2 | 3 | 4 | Loss Payments | Allocated Loss |
| in Which | | | | | Expense Payments |
|Premiums Were| | | |-----------------------------|-----------------------------|
| Earned and | Direct | | Net | 5 | 6 | 7 | 8 |
| Losses Were | and | Ceded | (2 - 3) | Direct | | Direct | |
| Incurred | Assumed | | | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| | | | | | | | |
| 1. Prior | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
|12. Totals | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
| 1 | Loss and Loss Expense Payments | |
| |--------------------------------------------| |
| Years | 9 | 10 | 11 | 12 |
| in Which | | | | Number of |
|Premiums Were| Salvage | Unallocated | Total | Claims |
| Earned and | and | Loss | Net Paid | Reported - |
| Losses Were | Subrogation | Expense | (5 - 6 + 7 | Direct and |
| Incurred | Received | Payments | - 8 + 10) | Assumed |
|-------------|--------------|--------------|--------------|--------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | X X X |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|
|12. Totals | 0 | 0 | 0 | X X X |
- ---------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | Losses Unpaid | Allocated Loss Expenses Unpaid |
| |--------------------------------------------------------|----------------------------------------------------------|
| | Case Basis | Bulk + IBNR | Case Basis | Bulk + IBNR |
| |---------------------------|----------------------------|-----------------------------|----------------------------|
| | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| | Direct | | Direct | | Direct | | Direct | |
| | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| | | | | | | | | |
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
|12. Totals | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------
| | | | | |
| | | | | |
| | 21 | 22 | 23 | 24 |
| | | | | Number of |
| | Salvage | Unallocated | Total | Claims |
| | and | Loss | Net Losses |Outstanding -|
| | Subrogation | Expenses | and Expenses | Direct and |
| | Anticipated | Unpaid | Unpaid | Assumed |
|-------------|--------------|--------------|--------------|-------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|-------------|
|12. Totals | 0 | 0 | 0 | 0 |
- --------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
| | Total Losses and | Loss and Loss Expense Percentage |
| | Loss Expenses Incurred | (Incurred/Premiums Earned) |
| |-----------------------------------------|--------------------------------------------|
| | 25 | 26 | 27 | 28 | 29 | 30 |
| | | | | | | |
| | Direct | | | Direct | | |
| | and Assumed | Ceded | Net | and Assumed | Ceded | Net |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| | | | | | | |
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1987 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 3. 1988 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 4. 1989 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 5. 1990 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 6. 1991 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 7. 1992 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 8. 1993 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 9. 1994 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|10. 1995 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|11. 1996 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
|12. Totals | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
| | | | Net Balance Sheet Reserves |
| | Nontabular Discount | 33 | After Discount |
| |-----------------------------| |-----------------------------|
| | 31 | 32 |Inter-Company | 34 | 35 |
| | | | Pooling | | Loss |
| | | Loss |Participation | Losses | Expenses |
| | Loss | Expense | Percentage | Unpaid | Unpaid |
|-------------|--------------|--------------|--------------|--------------|--------------|
| | | | | | |
| 1. Prior | 0 | 0 | X X X | 0 | 0 |
| 2. 1987 | 0 | 0 | 0.0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0.0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0.0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0.0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0.0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0.0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0.0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0.0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0.0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0.0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|--------------|
|12. Totals | 0 | 0 | X X X | 0 | 0 |
- ------------------------------------------------------------------------------------------
[NONE]
</TABLE>
79
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 1E - COMMERCIAL MULTIPLE PERIL
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
| 1 | Premiums Earned | Loss and Loss Expense Payments |
| |-----------------------------------------|-----------------------------------------------------------|
| Years | 2 | 3 | 4 | Loss Payments | Allocated Loss |
| in Which | | | | | Expense Payments |
|Premiums Were| | | |-----------------------------|-----------------------------|
| Earned and | Direct | | Net | 5 | 6 | 7 | 8 |
| Losses Were | and | Ceded | (2 - 3) | Direct | | Direct | |
| Incurred | Assumed | | | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| | | | | | | | |
| 1. Prior | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
|12. Totals | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
| 1 | Loss and Loss Expense Payments | |
| |--------------------------------------------| |
| Years | 9 | 10 | 11 | 12 |
| in Which | | | | Number of |
|Premiums Were| Salvage | Unallocated | Total | Claims |
| Earned and | and | Loss | Net Paid | Reported - |
| Losses Were | Subrogation | Expense | (5 - 6 + 7 | Direct and |
| Incurred | Received | Payments | - 8 + 10) | Assumed |
|-------------|--------------|--------------|--------------|--------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | X X X |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|
|12. Totals | 0 | 0 | 0 | X X X |
- ---------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | Losses Unpaid | Allocated Loss Expenses Unpaid |
| |--------------------------------------------------------|----------------------------------------------------------|
| | Case Basis | Bulk + IBNR | Case Basis | Bulk + IBNR |
| |---------------------------|----------------------------|-----------------------------|----------------------------|
| | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| | Direct | | Direct | | Direct | | Direct | |
| | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| | | | | | | | | |
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
|12. Totals | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------
| | | | | |
| | | | | |
| | 21 | 22 | 23 | 24 |
| | | | | Number of |
| | Salvage | Unallocated | Total | Claims |
| | and | Loss | Net Losses |Outstanding -|
| | Subrogation | Expenses | and Expenses | Direct and |
| | Anticipated | Unpaid | Unpaid | Assumed |
|-------------|--------------|--------------|--------------|-------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|-------------|
|12. Totals | 0 | 0 | 0 | 0 |
- --------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
| | Total Losses and | Loss and Loss Expense Percentage |
| | Loss Expenses Incurred | (Incurred/Premiums Earned) |
| |-----------------------------------------|--------------------------------------------|
| | 25 | 26 | 27 | 28 | 29 | 30 |
| | | | | | | |
| | Direct | | | Direct | | |
| | and Assumed | Ceded | Net | and Assumed | Ceded | Net |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| | | | | | | |
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1987 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 3. 1988 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 4. 1989 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 5. 1990 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 6. 1991 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 7. 1992 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 8. 1993 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 9. 1994 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|10. 1995 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|11. 1996 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
|12. Totals | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
| | | | Net Balance Sheet Reserves |
| | Nontabular Discount | 33 | After Discount |
| |-----------------------------| |-----------------------------|
| | 31 | 32 |Inter-Company | 34 | 35 |
| | | | Pooling | | Loss |
| | | Loss |Participation | Losses | Expenses |
| | Loss | Expense | Percentage | Unpaid | Unpaid |
|-------------|--------------|--------------|--------------|--------------|--------------|
| | | | | | |
| 1. Prior | 0 | 0 | X X X | 0 | 0 |
| 2. 1987 | 0 | 0 | 0.0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0.0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0.0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0.0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0.0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0.0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0.0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0.0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0.0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0.0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|--------------|
|12. Totals | 0 | 0 | X X X | 0 | 0 |
- ------------------------------------------------------------------------------------------
[NONE]
</TABLE>
80
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 1F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
| 1 | Premiums Earned | Loss and Loss Expense Payments |
| |-----------------------------------------|-----------------------------------------------------------|
| Years | 2 | 3 | 4 | Loss Payments | Allocated Loss |
| in Which | | | | | Expense Payments |
|Premiums Were| | | |-----------------------------|-----------------------------|
| Earned and | Direct | | Net | 5 | 6 | 7 | 8 |
| Losses Were | and | Ceded | (2 - 3) | Direct | | Direct | |
| Incurred | Assumed | | | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| | | | | | | | |
| 1. Prior | X X X | X X X | X X X | 3,183 | 370 | 340 | 65 |
| 2. 1987 | 5,325 | 794 | 4,531 | 911 | 0 | 609 | 0 |
| 3. 1988 | 623 | 0 | 623 | 230 | 0 | 186 | 0 |
| 4. 1989 | 1,025 | 0 | 1,025 | 225 | 0 | 169 | 0 |
| 5. 1990 | 440 | 0 | 440 | 1,067 | 0 | 176 | 0 |
| 6. 1991 | 243 | 0 | 243 | 94 | 0 | 119 | 0 |
| 7. 1992 | 272 | 0 | 272 | 868 | 0 | 74 | 0 |
| 8. 1993 | 711 | 0 | 711 | 1,094 | 0 | 306 | 0 |
| 9. 1994 | 96 | 0 | 96 | 400 | 0 | 26 | 0 |
|10. 1995 | 402 | 0 | 402 | 0 | 0 | 42 | 0 |
|11. 1996 | 681 | 0 | 681 | 0 | 0 | 7 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
|12. Totals | X X X | X X X | X X X | 8,072 | 370 | 2,054 | 65 |
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
| 1 | Loss and Loss Expense Payments | |
| |--------------------------------------------| |
| Years | 9 | 10 | 11 | 12 |
| in Which | | | | Number of |
|Premiums Were| Salvage | Unallocated | Total | Claims |
| Earned and | and | Loss | Net Paid | Reported - |
| Losses Were | Subrogation | Expense | (5 - 6 + 7 | Direct and |
| Incurred | Received | Payments | - 8 + 10) | Assumed |
|-------------|--------------|--------------|--------------|--------------|
| | | | | |
| 1. Prior | 0 | 0 | 3,088 | X X X |
| 2. 1987 | 0 | 113 | 1,633 | 49 |
| 3. 1988 | 0 | 15 | 431 | 6 |
| 4. 1989 | 0 | 30 | 424 | 9 |
| 5. 1990 | 0 | 18 | 1,261 | 16 |
| 6. 1991 | 0 | 14 | 227 | 8 |
| 7. 1992 | 0 | 18 | 960 | 8 |
| 8. 1993 | 0 | 40 | 1,440 | 19 |
| 9. 1994 | 0 | 6 | 432 | 5 |
|10. 1995 | 0 | 22 | 64 | 20 |
|11. 1996 | 0 | 30 | 37 | 8 |
|-------------|--------------|--------------|--------------|--------------|
|12. Totals | 0 | 306 | 9,997 | X X X |
- ---------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | Losses Unpaid | Allocated Loss Expenses Unpaid |
| |--------------------------------------------------------|----------------------------------------------------------|
| | Case Basis | Bulk + IBNR | Case Basis | Bulk + IBNR |
| |---------------------------|----------------------------|-----------------------------|----------------------------|
| | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| | Direct | | Direct | | Direct | | Direct | |
| | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| | | | | | | | | |
| 1. Prior | 4,023 | 1,317 | 57 | 21 | 1,277 | 439 | 18 | 7 |
| 2. 1987 | 392 | 73 | 18 | 3 | 131 | 24 | 6 | 1 |
| 3. 1988 | 190 | 0 | 8 | 0 | 63 | 0 | 3 | 0 |
| 4. 1989 | 220 | 0 | 33 | 0 | 73 | 0 | 11 | 0 |
| 5. 1990 | 41 | 0 | 3 | 0 | 14 | 0 | 1 | 0 |
| 6. 1991 | 170 | 0 | 31 | 0 | 57 | 0 | 10 | 0 |
| 7. 1992 | 151 | 0 | 14 | 0 | 50 | 0 | 5 | 0 |
| 8. 1993 | 950 | 0 | 83 | 0 | 317 | 0 | 28 | 0 |
| 9. 1994 | 334 | 0 | 67 | 0 | 111 | 0 | 22 | 0 |
|10. 1995 | 516 | 0 | 254 | 0 | 172 | 0 | 85 | 0 |
|11. 1996 | 222 | 0 | 270 | 0 | 74 | 0 | 90 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
|12. Totals | 7,209 | 1,390 | 838 | 24 | 2,339 | 463 | 279 | 8 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------
| | | | | |
| | | | | |
| | 21 | 22 | 23 | 24 |
| | | | | Number of |
| | Salvage | Unallocated | Total | Claims |
| | and | Loss | Net Losses |Outstanding -|
| | Subrogation | Expenses | and Expenses | Direct and |
| | Anticipated | Unpaid | Unpaid | Assumed |
|-------------|--------------|--------------|--------------|-------------|
| | | | | |
| 1. Prior | 0 | 239 | 3,830 | 8 |
| 2. 1987 | 0 | 34 | 480 | 0 |
| 3. 1988 | 0 | 20 | 284 | 0 |
| 4. 1989 | 0 | 26 | 363 | 0 |
| 5. 1990 | 0 | 4 | 63 | 0 |
| 6. 1991 | 0 | 20 | 288 | 0 |
| 7. 1992 | 0 | 17 | 237 | 0 |
| 8. 1993 | 0 | 84 | 1,462 | 5 |
| 9. 1994 | 0 | 37 | 571 | 1 |
|10. 1995 | 0 | 72 | 1,099 | 13 |
|11. 1996 | 0 | 49 | 705 | 7 |
|-------------|--------------|--------------|--------------|-------------|
|12. Totals | 0 | 602 | 9,382 | 34 |
- --------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
| | Total Losses and | Loss and Loss Expense Percentage |
| | Loss Expenses Incurred | (Incurred/Premiums Earned) |
| |-----------------------------------------|--------------------------------------------|
| | 25 | 26 | 27 | 28 | 29 | 30 |
| | | | | | | |
| | Direct | | | Direct | | |
| | and Assumed | Ceded | Net | and Assumed | Ceded | Net |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| | | | | | | |
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1987 | 2,214 | 101 | 2,113 | 41.6 | 12.7 | 46.6 |
| 3. 1988 | 715 | 0 | 715 | 114.8 | 0.0 | 114.8 |
| 4. 1989 | 787 | 0 | 787 | 76.8 | 0.0 | 76.8 |
| 5. 1990 | 1,324 | 0 | 1,324 | 300.9 | 0.0 | 300.9 |
| 6. 1991 | 515 | 0 | 515 | 211.9 | 0.0 | 211.9 |
| 7. 1992 | 1,197 | 0 | 1,197 | 440.1 | 0.0 | 440.1 |
| 8. 1993 | 2,902 | 0 | 2,902 | 408.2 | 0.0 | 408.2 |
| 9. 1994 | 1,003 | 0 | 1,003 | 1,044.8 | 0.0 | 1,044.8 |
|10. 1995 | 1,163 | 0 | 1,163 | 289.3 | 0.0 | 289.3 |
|11. 1996 | 742 | 0 | 742 | 109.0 | 0.0 | 109.0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
|12. Totals | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
| | | | Net Balance Sheet Reserves |
| | Nontabular Discount | 33 | After Discount |
| |-----------------------------| |-----------------------------|
| | 31 | 32 |Inter-Company | 34 | 35 |
| | | | Pooling | | Loss |
| | | Loss |Participation | Losses | Expenses |
| | Loss | Expense | Percentage | Unpaid | Unpaid |
|-------------|--------------|--------------|--------------|--------------|--------------|
| | | | | | |
| 1. Prior | 123 | 50 | X X X | 2,619 | 1,038 |
| 2. 1987 | 20 | 8 | 0.0 | 314 | 138 |
| 3. 1988 | 7 | 3 | 0.0 | 191 | 83 |
| 4. 1989 | 14 | 6 | 0.0 | 239 | 104 |
| 5. 1990 | 10 | 4 | 0.0 | 34 | 15 |
| 6. 1991 | 19 | 8 | 0.0 | 182 | 79 |
| 7. 1992 | 14 | 6 | 0.0 | 151 | 66 |
| 8. 1993 | 38 | 16 | 0.0 | 995 | 413 |
| 9. 1994 | 10 | 4 | 0.0 | 391 | 166 |
|10. 1995 | 0 | 0 | 0.0 | 770 | 329 |
|11. 1996 | 0 | 0 | 0.0 | 492 | 213 |
|-------------|--------------|--------------|--------------|--------------|--------------|
|12. Totals | 255 | 105 | X X X | 6,378 | 2,644 |
- ------------------------------------------------------------------------------------------
</TABLE>
81
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 1F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS-MADE
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
| 1 | Premiums Earned | Loss and Loss Expense Payments |
| |-----------------------------------------|-----------------------------------------------------------|
| Years | 2 | 3 | 4 | Loss Payments | Allocated Loss |
| in Which | | | | | Expense Payments |
|Premiums Were| | | |-----------------------------|-----------------------------|
| Earned and | Direct | | Net | 5 | 6 | 7 | 8 |
| Losses Were | and | Ceded | (2 - 3) | Direct | | Direct | |
| Incurred | Assumed | | | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| | | | | | | | |
| 1. Prior | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 2. 1987 | 13,111 | 1,954 | 11,157 | 2,021 | 125 | 756 | 13 |
| 3. 1988 | 26,005 | 0 | 26,005 | 6,292 | 0 | 1,921 | 0 |
| 4. 1989 | 28,751 | 0 | 28,751 | 12,342 | 0 | 2,887 | 0 |
| 5. 1990 | 24,772 | 0 | 24,772 | 10,780 | 0 | 3,288 | 0 |
| 6. 1991 | 18,714 | 0 | 18,714 | 10,408 | 0 | 3,668 | 0 |
| 7. 1992 | 14,391 | 0 | 14,391 | 6,980 | 0 | 2,895 | 0 |
| 8. 1993 | 14,943 | 0 | 14,943 | 4,824 | 0 | 2,258 | 0 |
| 9. 1994 | 12,967 | 0 | 12,967 | 5,035 | 0 | 1,635 | 0 |
|10. 1995 | 14,378 | 0 | 14,378 | 4,168 | 0 | 1,274 | 0 |
|11. 1996 | 12,133 | 0 | 12,133 | 0 | 0 | 207 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
|12. Totals | X X X | X X X | X X X | 62,850 | 125 | 20,789 | 13 |
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
| 1 | Loss and Loss Expense Payments | |
| |--------------------------------------------| |
| Years | 9 | 10 | 11 | 12 |
| in Which | | | | Number of |
|Premiums Were| Salvage | Unallocated | Total | Claims |
| Earned and | and | Loss | Net Paid | Reported - |
| Losses Were | Subrogation | Expense | (5 - 6 + 7 | Direct and |
| Incurred | Received | Payments | - 8 + 10) | Assumed |
|-------------|--------------|--------------|--------------|--------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | X X X |
| 2. 1987 | 0 | 277 | 2,916 | 81 |
| 3. 1988 | 0 | 617 | 8,830 | 154 |
| 4. 1989 | 0 | 856 | 16,085 | 269 |
| 5. 1990 | 0 | 1,021 | 15,089 | 245 |
| 6. 1991 | 0 | 1,054 | 15,130 | 239 |
| 7. 1992 | 0 | 941 | 10,816 | 244 |
| 8. 1993 | 0 | 841 | 7,923 | 207 |
| 9. 1994 | 0 | 861 | 7,531 | 229 |
|10. 1995 | 0 | 787 | 6,229 | 207 |
|11. 1996 | 0 | 536 | 743 | 168 |
|-------------|--------------|--------------|--------------|--------------|
|12. Totals | 0 | 7,791 | 91,292 | X X X |
- ---------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | Losses Unpaid | Allocated Loss Expenses Unpaid |
| |--------------------------------------------------------|----------------------------------------------------------|
| | Case Basis | Bulk + IBNR | Case Basis | Bulk + IBNR |
| |---------------------------|----------------------------|-----------------------------|----------------------------|
| | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| | Direct | | Direct | | Direct | | Direct | |
| | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| | | | | | | | | |
| 1. Prior | 16 | 2 | 0 | 0 | 6 | 1 | 0 | 0 |
| 2. 1987 | 461 | 47 | 0 | 0 | 154 | 16 | 0 | 0 |
| 3. 1988 | 578 | 0 | 0 | 0 | 193 | 0 | 0 | 0 |
| 4. 1989 | 376 | 0 | 0 | 0 | 126 | 0 | 0 | 0 |
| 5. 1990 | 714 | 0 | 0 | 0 | 237 | 0 | 0 | 0 |
| 6. 1991 | 1,853 | 0 | 0 | 0 | 617 | 0 | 0 | 0 |
| 7. 1992 | 2,391 | 0 | 0 | 0 | 797 | 0 | 0 | 0 |
| 8. 1993 | 4,489 | 0 | 0 | 0 | 1,496 | 0 | 0 | 0 |
| 9. 1994 | 6,832 | 0 | 0 | 0 | 2,278 | 0 | 0 | 0 |
|10. 1995 | 8,842 | 0 | 0 | 0 | 2,947 | 0 | 0 | 0 |
|11. 1996 | 9,901 | 0 | 0 | 0 | 3,301 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
|12. Totals | 36,453 | 49 | 0 | 0 | 12,152 | 17 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------
| | | | | |
| | | | | |
| | 21 | 22 | 23 | 24 |
| | | | | Number of |
| | Salvage | Unallocated | Total | Claims |
| | and | Loss | Net Losses |Outstanding -|
| | Subrogation | Expenses | and Expenses | Direct and |
| | Anticipated | Unpaid | Unpaid | Assumed |
|-------------|--------------|--------------|--------------|-------------|
| | | | | |
| 1. Prior | 0 | 1 | 20 | 0 |
| 2. 1987 | 0 | 33 | 585 | 2 |
| 3. 1988 | 0 | 56 | 827 | 2 |
| 4. 1989 | 0 | 35 | 537 | 1 |
| 5. 1990 | 0 | 68 | 1,019 | 6 |
| 6. 1991 | 0 | 171 | 2,641 | 16 |
| 7. 1992 | 0 | 205 | 3,393 | 22 |
| 8. 1993 | 0 | 392 | 6,377 | 39 |
| 9. 1994 | 0 | 524 | 9,634 | 74 |
|10. 1995 | 0 | 684 | 12,473 | 124 |
|11. 1996 | 0 | 929 | 14,131 | 142 |
|-------------|--------------|--------------|--------------|-------------|
|12. Totals | 0 | 3,098 | 51,637 | 428 |
- --------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
| | Total Losses and | Loss and Loss Expense Percentage |
| | Loss Expenses Incurred | (Incurred/Premiums Earned) |
| |-----------------------------------------|--------------------------------------------|
| | 25 | 26 | 27 | 28 | 29 | 30 |
| | | | | | | |
| | Direct | | | Direct | | |
| | and Assumed | Ceded | Net | and Assumed | Ceded | Net |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| | | | | | | |
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1987 | 3,702 | 201 | 3,501 | 28.2 | 10.3 | 31.4 |
| 3. 1988 | 9,657 | 0 | 9,657 | 37.1 | 0.0 | 37.1 |
| 4. 1989 | 16,622 | 0 | 16,622 | 57.8 | 0.0 | 57.8 |
| 5. 1990 | 16,108 | 0 | 16,108 | 65.0 | 0.0 | 65.0 |
| 6. 1991 | 17,771 | 0 | 17,771 | 95.0 | 0.0 | 95.0 |
| 7. 1992 | 14,209 | 0 | 14,209 | 98.7 | 0.0 | 98.7 |
| 8. 1993 | 14,300 | 0 | 14,300 | 95.7 | 0.0 | 95.7 |
| 9. 1994 | 17,165 | 0 | 17,165 | 132.4 | 0.0 | 132.4 |
|10. 1995 | 18,702 | 0 | 18,702 | 130.1 | 0.0 | 130.1 |
|11. 1996 | 14,874 | 0 | 14,874 | 122.6 | 0.0 | 122.6 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
|12. Totals | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
| | | | Net Balance Sheet Reserves |
| | Nontabular Discount | 33 | After Discount |
| |-----------------------------| |-----------------------------|
| | 31 | 32 |Inter-Company | 34 | 35 |
| | | | Pooling | | Loss |
| | | Loss |Participation | Losses | Expenses |
| | Loss | Expense | Percentage | Unpaid | Unpaid |
|-------------|--------------|--------------|--------------|--------------|--------------|
| | | | | | |
| 1. Prior | 0 | 0 | X X X | 14 | 6 |
| 2. 1987 | 6 | 3 | 0.0 | 408 | 168 |
| 3. 1988 | 25 | 10 | 0.0 | 553 | 239 |
| 4. 1989 | 17 | 7 | 0.0 | 359 | 154 |
| 5. 1990 | 45 | 18 | 0.0 | 669 | 287 |
| 6. 1991 | 138 | 55 | 0.0 | 1,715 | 733 |
| 7. 1992 | 203 | 82 | 0.0 | 2,188 | 920 |
| 8. 1993 | 341 | 139 | 0.0 | 4,148 | 1,749 |
| 9. 1994 | 456 | 185 | 0.0 | 6,376 | 2,617 |
|10. 1995 | 0 | 0 | 0.0 | 8,842 | 3,631 |
|11. 1996 | 0 | 0 | 0.0 | 9,901 | 4,230 |
|-------------|--------------|--------------|--------------|--------------|--------------|
|12. Totals | 1,231 | 499 | X X X | 35,173 | 14,734 |
- ------------------------------------------------------------------------------------------
</TABLE>
82
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 1G - SPECIAL LIABILITY (OCEAN MARINE,
AIRCRAFT (ALL PERILS), BOILER AND MACHINERY)
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
| 1 | Premiums Earned | Loss and Loss Expense Payments |
| |-----------------------------------------|-----------------------------------------------------------|
| Years | 2 | 3 | 4 | Loss Payments | Allocated Loss |
| in Which | | | | | Expense Payments |
|Premiums Were| | | |-----------------------------|-----------------------------|
| Earned and | Direct | | Net | 5 | 6 | 7 | 8 |
| Losses Were | and | Ceded | (2 - 3) | Direct | | Direct | |
| Incurred | Assumed | | | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| | | | | | | | |
| 1. Prior | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
|12. Totals | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
| 1 | Loss and Loss Expense Payments | |
| |--------------------------------------------| |
| Years | 9 | 10 | 11 | 12 |
| in Which | | | | Number of |
|Premiums Were| Salvage | Unallocated | Total | Claims |
| Earned and | and | Loss | Net Paid | Reported - |
| Losses Were | Subrogation | Expense | (5 - 6 + 7 | Direct and |
| Incurred | Received | Payments | - 8 + 10) | Assumed |
|-------------|--------------|--------------|--------------|--------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | X X X |
| 2. 1987 | 0 | 0 | 0 | X X X |
| 3. 1988 | 0 | 0 | 0 | X X X |
| 4. 1989 | 0 | 0 | 0 | X X X |
| 5. 1990 | 0 | 0 | 0 | X X X |
| 6. 1991 | 0 | 0 | 0 | X X X |
| 7. 1992 | 0 | 0 | 0 | X X X |
| 8. 1993 | 0 | 0 | 0 | X X X |
| 9. 1994 | 0 | 0 | 0 | X X X |
|10. 1995 | 0 | 0 | 0 | X X X |
|11. 1996 | 0 | 0 | 0 | X X X |
|-------------|--------------|--------------|--------------|--------------|
|12. Totals | 0 | 0 | 0 | X X X |
- ---------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | Losses Unpaid | Allocated Loss Expenses Unpaid |
| |--------------------------------------------------------|----------------------------------------------------------|
| | Case Basis | Bulk + IBNR | Case Basis | Bulk + IBNR |
| |---------------------------|----------------------------|-----------------------------|----------------------------|
| | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| | Direct | | Direct | | Direct | | Direct | |
| | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| | | | | | | | | |
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
|12. Totals | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------
| | | | | |
| | | | | |
| | 21 | 22 | 23 | 24 |
| | | | | Number of |
| | Salvage | Unallocated | Total | Claims |
| | and | Loss | Net Losses |Outstanding -|
| | Subrogation | Expenses | and Expenses | Direct and |
| | Anticipated | Unpaid | Unpaid | Assumed |
|-------------|--------------|--------------|--------------|-------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|-------------|
|12. Totals | 0 | 0 | 0 | 0 |
- --------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
| | Total Losses and | Loss and Loss Expense Percentage |
| | Loss Expenses Incurred | (Incurred/Premiums Earned) |
| |-----------------------------------------|--------------------------------------------|
| | 25 | 26 | 27 | 28 | 29 | 30 |
| | | | | | | |
| | Direct | | | Direct | | |
| | and Assumed | Ceded | Net | and Assumed | Ceded | Net |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| | | | | | | |
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1987 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 3. 1988 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 4. 1989 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 5. 1990 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 6. 1991 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 7. 1992 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 8. 1993 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 9. 1994 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|10. 1995 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|11. 1996 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
|12. Totals | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
| | | | Net Balance Sheet Reserves |
| | Nontabular Discount | 33 | After Discount |
| |-----------------------------| |-----------------------------|
| | 31 | 32 |Inter-Company | 34 | 35 |
| | | | Pooling | | Loss |
| | | Loss |Participation | Losses | Expenses |
| | Loss | Expense | Percentage | Unpaid | Unpaid |
|-------------|--------------|--------------|--------------|--------------|--------------|
| | | | | | |
| 1. Prior | 0 | 0 | X X X | 0 | 0 |
| 2. 1987 | 0 | 0 | 0.0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0.0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0.0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0.0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0.0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0.0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0.0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0.0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0.0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0.0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|--------------|
|12. Totals | 0 | 0 | X X X | 0 | 0 |
- ------------------------------------------------------------------------------------------
[NONE]
</TABLE>
83
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 1H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
| 1 | Premiums Earned | Loss and Loss Expense Payments |
| |-----------------------------------------|-----------------------------------------------------------|
| Years | 2 | 3 | 4 | Loss Payments | Allocated Loss |
| in Which | | | | | Expense Payments |
|Premiums Were| | | |-----------------------------|-----------------------------|
| Earned and | Direct | | Net | 5 | 6 | 7 | 8 |
| Losses Were | and | Ceded | (2 - 3) | Direct | | Direct | |
| Incurred | Assumed | | | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| | | | | | | | |
| 1. Prior | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
|12. Totals | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
| 1 | Loss and Loss Expense Payments | |
| |--------------------------------------------| |
| Years | 9 | 10 | 11 | 12 |
| in Which | | | | Number of |
|Premiums Were| Salvage | Unallocated | Total | Claims |
| Earned and | and | Loss | Net Paid | Reported - |
| Losses Were | Subrogation | Expense | (5 - 6 + 7 | Direct and |
| Incurred | Received | Payments | - 8 + 10) | Assumed |
|-------------|--------------|--------------|--------------|--------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | X X X |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|
|12. Totals | 0 | 0 | 0 | X X X |
- ---------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | Losses Unpaid | Allocated Loss Expenses Unpaid |
| |--------------------------------------------------------|----------------------------------------------------------|
| | Case Basis | Bulk + IBNR | Case Basis | Bulk + IBNR |
| |---------------------------|----------------------------|-----------------------------|----------------------------|
| | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| | Direct | | Direct | | Direct | | Direct | |
| | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| | | | | | | | | |
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
|12. Totals | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------
| | | | | |
| | | | | |
| | 21 | 22 | 23 | 24 |
| | | | | Number of |
| | Salvage | Unallocated | Total | Claims |
| | and | Loss | Net Losses |Outstanding -|
| | Subrogation | Expenses | and Expenses | Direct and |
| | Anticipated | Unpaid | Unpaid | Assumed |
|-------------|--------------|--------------|--------------|-------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|-------------|
|12. Totals | 0 | 0 | 0 | 0 |
- --------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
| | Total Losses and | Loss and Loss Expense Percentage |
| | Loss Expenses Incurred | (Incurred/Premiums Earned) |
| |-----------------------------------------|--------------------------------------------|
| | 25 | 26 | 27 | 28 | 29 | 30 |
| | | | | | | |
| | Direct | | | Direct | | |
| | and Assumed | Ceded | Net | and Assumed | Ceded | Net |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| | | | | | | |
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1987 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 3. 1988 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 4. 1989 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 5. 1990 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 6. 1991 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 7. 1992 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 8. 1993 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 9. 1994 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|10. 1995 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|11. 1996 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
|12. Totals | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
| | | | Net Balance Sheet Reserves |
| | Nontabular Discount | 33 | After Discount |
| |-----------------------------| |-----------------------------|
| | 31 | 32 |Inter-Company | 34 | 35 |
| | | | Pooling | | Loss |
| | | Loss |Participation | Losses | Expenses |
| | Loss | Expense | Percentage | Unpaid | Unpaid |
|-------------|--------------|--------------|--------------|--------------|--------------|
| | | | | | |
| 1. Prior | 0 | 0 | X X X | 0 | 0 |
| 2. 1987 | 0 | 0 | 0.0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0.0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0.0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0.0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0.0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0.0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0.0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0.0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0.0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0.0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|--------------|
|12. Totals | 0 | 0 | X X X | 0 | 0 |
- ------------------------------------------------------------------------------------------
[NONE]
</TABLE>
84
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 1H - SECTION 2 - OTHER LIABILITY - CLAIMS-MADE
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
| 1 | Premiums Earned | Loss and Loss Expense Payments |
| |-----------------------------------------|-----------------------------------------------------------|
| Years | 2 | 3 | 4 | Loss Payments | Allocated Loss |
| in Which | | | | | Expense Payments |
|Premiums Were| | | |-----------------------------|-----------------------------|
| Earned and | Direct | | Net | 5 | 6 | 7 | 8 |
| Losses Were | and | Ceded | (2 - 3) | Direct | | Direct | |
| Incurred | Assumed | | | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| | | | | | | | |
| 1. Prior | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
|12. Totals | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
| 1 | Loss and Loss Expense Payments | |
| |--------------------------------------------| |
| Years | 9 | 10 | 11 | 12 |
| in Which | | | | Number of |
|Premiums Were| Salvage | Unallocated | Total | Claims |
| Earned and | and | Loss | Net Paid | Reported - |
| Losses Were | Subrogation | Expense | (5 - 6 + 7 | Direct and |
| Incurred | Received | Payments | - 8 + 10) | Assumed |
|-------------|--------------|--------------|--------------|--------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | X X X |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|
|12. Totals | 0 | 0 | 0 | X X X |
- ---------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | Losses Unpaid | Allocated Loss Expenses Unpaid |
| |--------------------------------------------------------|----------------------------------------------------------|
| | Case Basis | Bulk + IBNR | Case Basis | Bulk + IBNR |
| |---------------------------|----------------------------|-----------------------------|----------------------------|
| | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| | Direct | | Direct | | Direct | | Direct | |
| | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| | | | | | | | | |
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
|12. Totals | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------
| | | | | |
| | | | | |
| | 21 | 22 | 23 | 24 |
| | | | | Number of |
| | Salvage | Unallocated | Total | Claims |
| | and | Loss | Net Losses |Outstanding -|
| | Subrogation | Expenses | and Expenses | Direct and |
| | Anticipated | Unpaid | Unpaid | Assumed |
|-------------|--------------|--------------|--------------|-------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|-------------|
|12. Totals | 0 | 0 | 0 | 0 |
- --------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
| | Total Losses and | Loss and Loss Expense Percentage |
| | Loss Expenses Incurred | (Incurred/Premiums Earned) |
| |-----------------------------------------|--------------------------------------------|
| | 25 | 26 | 27 | 28 | 29 | 30 |
| | | | | | | |
| | Direct | | | Direct | | |
| | and Assumed | Ceded | Net | and Assumed | Ceded | Net |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| | | | | | | |
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1987 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 3. 1988 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 4. 1989 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 5. 1990 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 6. 1991 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 7. 1992 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 8. 1993 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 9. 1994 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|10. 1995 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|11. 1996 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
|12. Totals | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
| | | | Net Balance Sheet Reserves |
| | Nontabular Discount | 33 | After Discount |
| |-----------------------------| |-----------------------------|
| | 31 | 32 |Inter-Company | 34 | 35 |
| | | | Pooling | | Loss |
| | | Loss |Participation | Losses | Expenses |
| | Loss | Expense | Percentage | Unpaid | Unpaid |
|-------------|--------------|--------------|--------------|--------------|--------------|
| | | | | | |
| 1. Prior | 0 | 0 | X X X | 0 | 0 |
| 2. 1987 | 0 | 0 | 0.0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0.0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0.0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0.0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0.0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0.0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0.0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0.0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0.0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0.0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|--------------|
|12. Totals | 0 | 0 | X X X | 0 | 0 |
- ------------------------------------------------------------------------------------------
[NONE]
</TABLE>
85
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 1I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE,
EARTHQUAKE, GLASS, BURGLARY AND THEFT)
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
| 1 | Premiums Earned | Loss and Loss Expense Payments |
| |-----------------------------------------|-----------------------------------------------------------|
| Years | 2 | 3 | 4 | Loss Payments | Allocated Loss |
| in Which | | | | | Expense Payments |
|Premiums Were| | | |-----------------------------|-----------------------------|
| Earned and | Direct | | Net | 5 | 6 | 7 | 8 |
| Losses Were | and | Ceded | (2 - 3) | Direct | | Direct | |
| Incurred | Assumed | | | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| | | | | | | | |
| 1. Prior | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 2. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| 4. Totals | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
| 1 | Loss and Loss Expense Payments | |
| |--------------------------------------------| |
| Years | 9 | 10 | 11 | 12 |
| in Which | | | | Number of |
|Premiums Were| Salvage | Unallocated | Total | Claims |
| Earned and | and | Loss | Net Paid | Reported - |
| Losses Were | Subrogation | Expense | (5 - 6 + 7 | Direct and |
| Incurred | Received | Payments | - 8 + 10) | Assumed |
|-------------|--------------|--------------|--------------|--------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | X X X |
| 2. 1995 | 0 | 0 | 0 | 0 |
| 3. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|
| 4. Totals | 0 | 0 | 0 | X X X |
- ---------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | Losses Unpaid | Allocated Loss Expenses Unpaid |
| |--------------------------------------------------------|----------------------------------------------------------|
| | Case Basis | Bulk + IBNR | Case Basis | Bulk + IBNR |
| |---------------------------|----------------------------|-----------------------------|----------------------------|
| | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| | Direct | | Direct | | Direct | | Direct | |
| | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| | | | | | | | | |
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| 4. Totals | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------
| | | | | |
| | | | | |
| | 21 | 22 | 23 | 24 |
| | | | | Number of |
| | Salvage | Unallocated | Total | Claims |
| | and | Loss | Net Losses |Outstanding -|
| | Subrogation | Expenses | and Expenses | Direct and |
| | Anticipated | Unpaid | Unpaid | Assumed |
|-------------|--------------|--------------|--------------|-------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1995 | 0 | 0 | 0 | 0 |
| 3. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|-------------|
| 4. Totals | 0 | 0 | 0 | 0 |
- --------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
| | Total Losses and | Loss and Loss Expense Percentage |
| | Loss Expenses Incurred | (Incurred/Premiums Earned) |
| |-----------------------------------------|--------------------------------------------|
| | 25 | 26 | 27 | 28 | 29 | 30 |
| | | | | | | |
| | Direct | | | Direct | | |
| | and Assumed | Ceded | Net | and Assumed | Ceded | Net |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| | | | | | | |
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1995 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 3. 1996 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| 4. Totals | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
| | | | Net Balance Sheet Reserves |
| | Nontabular Discount | 33 | After Discount |
| |-----------------------------| |-----------------------------|
| | 31 | 32 |Inter-Company | 34 | 35 |
| | | | Pooling | | Loss |
| | | Loss |Participation | Losses | Expenses |
| | Loss | Expense | Percentage | Unpaid | Unpaid |
|-------------|--------------|--------------|--------------|--------------|--------------|
| | | | | | |
| 1. Prior | 0 | 0 | X X X | 0 | 0 |
| 2. 1995 | 0 | 0 | 0.0 | 0 | 0 |
| 3. 1996 | 0 | 0 | 0.0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|--------------|
| 4. Totals | 0 | 0 | X X X | 0 | 0 |
- ------------------------------------------------------------------------------------------
[NONE]
</TABLE>
86
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 1J - AUTO PHYSICAL DAMAGE
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
| 1 | Premiums Earned | Loss and Loss Expense Payments |
| |-----------------------------------------|-----------------------------------------------------------|
| Years | 2 | 3 | 4 | Loss Payments | Allocated Loss |
| in Which | | | | | Expense Payments |
|Premiums Were| | | |-----------------------------|-----------------------------|
| Earned and | Direct | | Net | 5 | 6 | 7 | 8 |
| Losses Were | and | Ceded | (2 - 3) | Direct | | Direct | |
| Incurred | Assumed | | | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| | | | | | | | |
| 1. Prior | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 2. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| 4. Totals | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
| 1 | Loss and Loss Expense Payments | |
| |--------------------------------------------| |
| Years | 9 | 10 | 11 | 12 |
| in Which | | | | Number of |
|Premiums Were| Salvage | Unallocated | Total | Claims |
| Earned and | and | Loss | Net Paid | Reported - |
| Losses Were | Subrogation | Expense | (5 - 6 + 7 | Direct and |
| Incurred | Received | Payments | - 8 + 10) | Assumed |
|-------------|--------------|--------------|--------------|--------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | X X X |
| 2. 1995 | 0 | 0 | 0 | 0 |
| 3. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|
| 4. Totals | 0 | 0 | 0 | X X X |
- ---------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | Losses Unpaid | Allocated Loss Expenses Unpaid |
| |--------------------------------------------------------|----------------------------------------------------------|
| | Case Basis | Bulk + IBNR | Case Basis | Bulk + IBNR |
| |---------------------------|----------------------------|-----------------------------|----------------------------|
| | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| | Direct | | Direct | | Direct | | Direct | |
| | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| | | | | | | | | |
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| 4. Totals | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------
| | | | | |
| | | | | |
| | 21 | 22 | 23 | 24 |
| | | | | Number of |
| | Salvage | Unallocated | Total | Claims |
| | and | Loss | Net Losses |Outstanding -|
| | Subrogation | Expenses | and Expenses | Direct and |
| | Anticipated | Unpaid | Unpaid | Assumed |
|-------------|--------------|--------------|--------------|-------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1995 | 0 | 0 | 0 | 0 |
| 3. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|-------------|
| 4. Totals | 0 | 0 | 0 | 0 |
- --------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
| | Total Losses and | Loss and Loss Expense Percentage |
| | Loss Expenses Incurred | (Incurred/Premiums Earned) |
| |-----------------------------------------|--------------------------------------------|
| | 25 | 26 | 27 | 28 | 29 | 30 |
| | | | | | | |
| | Direct | | | Direct | | |
| | and Assumed | Ceded | Net | and Assumed | Ceded | Net |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| | | | | | | |
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1995 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 3. 1996 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| 4. Totals | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
| | | | Net Balance Sheet Reserves |
| | Nontabular Discount | 33 | After Discount |
| |-----------------------------| |-----------------------------|
| | 31 | 32 |Inter-Company | 34 | 35 |
| | | | Pooling | | Loss |
| | | Loss |Participation | Losses | Expenses |
| | Loss | Expense | Percentage | Unpaid | Unpaid |
|-------------|--------------|--------------|--------------|--------------|--------------|
| | | | | | |
| 1. Prior | 0 | 0 | X X X | 0 | 0 |
| 2. 1995 | 0 | 0 | 0.0 | 0 | 0 |
| 3. 1996 | 0 | 0 | 0.0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|--------------|
| 4. Totals | 0 | 0 | X X X | 0 | 0 |
- ------------------------------------------------------------------------------------------
[NONE]
</TABLE>
87
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 1K - FIDELITY/SURETY
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
| 1 | Premiums Earned | Loss and Loss Expense Payments |
| |-----------------------------------------|-----------------------------------------------------------|
| Years | 2 | 3 | 4 | Loss Payments | Allocated Loss |
| in Which | | | | | Expense Payments |
|Premiums Were| | | |-----------------------------|-----------------------------|
| Earned and | Direct | | Net | 5 | 6 | 7 | 8 |
| Losses Were | and | Ceded | (2 - 3) | Direct | | Direct | |
| Incurred | Assumed | | | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| | | | | | | | |
| 1. Prior | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 2. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| 4. Totals | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
| 1 | Loss and Loss Expense Payments | |
| |--------------------------------------------| |
| Years | 9 | 10 | 11 | 12 |
| in Which | | | | Number of |
|Premiums Were| Salvage | Unallocated | Total | Claims |
| Earned and | and | Loss | Net Paid | Reported - |
| Losses Were | Subrogation | Expense | (5 - 6 + 7 | Direct and |
| Incurred | Received | Payments | - 8 + 10) | Assumed |
|-------------|--------------|--------------|--------------|--------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | X X X |
| 2. 1995 | 0 | 0 | 0 | X X X |
| 3. 1996 | 0 | 0 | 0 | X X X |
|-------------|--------------|--------------|--------------|--------------|
| 4. Totals | 0 | 0 | 0 | X X X |
- ---------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | Losses Unpaid | Allocated Loss Expenses Unpaid |
| |--------------------------------------------------------|----------------------------------------------------------|
| | Case Basis | Bulk + IBNR | Case Basis | Bulk + IBNR |
| |---------------------------|----------------------------|-----------------------------|----------------------------|
| | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| | Direct | | Direct | | Direct | | Direct | |
| | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| | | | | | | | | |
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| 4. Totals | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------
| | | | | |
| | | | | |
| | 21 | 22 | 23 | 24 |
| | | | | Number of |
| | Salvage | Unallocated | Total | Claims |
| | and | Loss | Net Losses |Outstanding -|
| | Subrogation | Expenses | and Expenses | Direct and |
| | Anticipated | Unpaid | Unpaid | Assumed |
|-------------|--------------|--------------|--------------|-------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1995 | 0 | 0 | 0 | 0 |
| 3. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|-------------|
| 4. Totals | 0 | 0 | 0 | 0 |
- --------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
| | Total Losses and | Loss and Loss Expense Percentage |
| | Loss Expenses Incurred | (Incurred/Premiums Earned) |
| |-----------------------------------------|--------------------------------------------|
| | 25 | 26 | 27 | 28 | 29 | 30 |
| | | | | | | |
| | Direct | | | Direct | | |
| | and Assumed | Ceded | Net | and Assumed | Ceded | Net |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| | | | | | | |
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1995 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 3. 1996 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| 4. Totals | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
| | | | Net Balance Sheet Reserves |
| | Nontabular Discount | 33 | After Discount |
| |-----------------------------| |-----------------------------|
| | 31 | 32 |Inter-Company | 34 | 35 |
| | | | Pooling | | Loss |
| | | Loss |Participation | Losses | Expenses |
| | Loss | Expense | Percentage | Unpaid | Unpaid |
|-------------|--------------|--------------|--------------|--------------|--------------|
| | | | | | |
| 1. Prior | 0 | 0 | X X X | 0 | 0 |
| 2. 1995 | 0 | 0 | 0.0 | 0 | 0 |
| 3. 1996 | 0 | 0 | 0.0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|--------------|
| 4. Totals | 0 | 0 | X X X | 0 | 0 |
- ------------------------------------------------------------------------------------------
[NONE]
</TABLE>
88
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 1L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
| 1 | Premiums Earned | Loss and Loss Expense Payments |
| |-----------------------------------------|-----------------------------------------------------------|
| Years | 2 | 3 | 4 | Loss Payments | Allocated Loss |
| in Which | | | | | Expense Payments |
|Premiums Were| | | |-----------------------------|-----------------------------|
| Earned and | Direct | | Net | 5 | 6 | 7 | 8 |
| Losses Were | and | Ceded | (2 - 3) | Direct | | Direct | |
| Incurred | Assumed | | | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| | | | | | | | |
| 1. Prior | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 2. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| 4. Totals | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
| 1 | Loss and Loss Expense Payments | |
| |--------------------------------------------| |
| Years | 9 | 10 | 11 | 12 |
| in Which | | | | Number of |
|Premiums Were| Salvage | Unallocated | Total | Claims |
| Earned and | and | Loss | Net Paid | Reported - |
| Losses Were | Subrogation | Expense | (5 - 6 + 7 | Direct and |
| Incurred | Received | Payments | - 8 + 10) | Assumed |
|-------------|--------------|--------------|--------------|--------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | X X X |
| 2. 1995 | 0 | 0 | 0 | X X X |
| 3. 1996 | 0 | 0 | 0 | X X X |
|-------------|--------------|--------------|--------------|--------------|
| 4. Totals | 0 | 0 | 0 | X X X |
- ---------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | Losses Unpaid | Allocated Loss Expenses Unpaid |
| |--------------------------------------------------------|----------------------------------------------------------|
| | Case Basis | Bulk + IBNR | Case Basis | Bulk + IBNR |
| |---------------------------|----------------------------|-----------------------------|----------------------------|
| | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| | Direct | | Direct | | Direct | | Direct | |
| | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| | | | | | | | | |
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| 4. Totals | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------
| | | | | |
| | | | | |
| | 21 | 22 | 23 | 24 |
| | | | | Number of |
| | Salvage | Unallocated | Total | Claims |
| | and | Loss | Net Losses |Outstanding -|
| | Subrogation | Expenses | and Expenses | Direct and |
| | Anticipated | Unpaid | Unpaid | Assumed |
|-------------|--------------|--------------|--------------|-------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1995 | 0 | 0 | 0 | 0 |
| 3. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|-------------|
| 4. Totals | 0 | 0 | 0 | 0 |
- --------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
| | Total Losses and | Loss and Loss Expense Percentage |
| | Loss Expenses Incurred | (Incurred/Premiums Earned) |
| |-----------------------------------------|--------------------------------------------|
| | 25 | 26 | 27 | 28 | 29 | 30 |
| | | | | | | |
| | Direct | | | Direct | | |
| | and Assumed | Ceded | Net | and Assumed | Ceded | Net |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| | | | | | | |
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1995 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 3. 1996 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| 4. Totals | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
| | | | Net Balance Sheet Reserves |
| | Nontabular Discount | 33 | After Discount |
| |-----------------------------| |-----------------------------|
| | 31 | 32 |Inter-Company | 34 | 35 |
| | | | Pooling | | Loss |
| | | Loss |Participation | Losses | Expenses |
| | Loss | Expense | Percentage | Unpaid | Unpaid |
|-------------|--------------|--------------|--------------|--------------|--------------|
| | | | | | |
| 1. Prior | 0 | 0 | X X X | 0 | 0 |
| 2. 1995 | 0 | 0 | 0.0 | 0 | 0 |
| 3. 1996 | 0 | 0 | 0.0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|--------------|
| 4. Totals | 0 | 0 | X X X | 0 | 0 |
- ------------------------------------------------------------------------------------------
[NONE]
</TABLE>
89
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 1M - INTERNATIONAL
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
| 1 | Premiums Earned | Loss and Loss Expense Payments |
| |-----------------------------------------|-----------------------------------------------------------|
| Years | 2 | 3 | 4 | Loss Payments | Allocated Loss |
| in Which | | | | | Expense Payments |
|Premiums Were| | | |-----------------------------|-----------------------------|
| Earned and | Direct | | Net | 5 | 6 | 7 | 8 |
| Losses Were | and | Ceded | (2 - 3) | Direct | | Direct | |
| Incurred | Assumed | | | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| | | | | | | | |
| 1. Prior | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
|12. Totals | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
| 1 | Loss and Loss Expense Payments | |
| |--------------------------------------------| |
| Years | 9 | 10 | 11 | 12 |
| in Which | | | | Number of |
|Premiums Were| Salvage | Unallocated | Total | Claims |
| Earned and | and | Loss | Net Paid | Reported - |
| Losses Were | Subrogation | Expense | (5 - 6 + 7 | Direct and |
| Incurred | Received | Payments | - 8 + 10) | Assumed |
|-------------|--------------|--------------|--------------|--------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | X X X |
| 2. 1987 | 0 | 0 | 0 | X X X |
| 3. 1988 | 0 | 0 | 0 | X X X |
| 4. 1989 | 0 | 0 | 0 | X X X |
| 5. 1990 | 0 | 0 | 0 | X X X |
| 6. 1991 | 0 | 0 | 0 | X X X |
| 7. 1992 | 0 | 0 | 0 | X X X |
| 8. 1993 | 0 | 0 | 0 | X X X |
| 9. 1994 | 0 | 0 | 0 | X X X |
|10. 1995 | 0 | 0 | 0 | X X X |
|11. 1996 | 0 | 0 | 0 | X X X |
|-------------|--------------|--------------|--------------|--------------|
|12. Totals | 0 | 0 | 0 | X X X |
- ---------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | Losses Unpaid | Allocated Loss Expenses Unpaid |
| |--------------------------------------------------------|----------------------------------------------------------|
| | Case Basis | Bulk + IBNR | Case Basis | Bulk + IBNR |
| |---------------------------|----------------------------|-----------------------------|----------------------------|
| | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| | Direct | | Direct | | Direct | | Direct | |
| | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| | | | | | | | | |
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
|12. Totals | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------
| | | | | |
| | | | | |
| | 21 | 22 | 23 | 24 |
| | | | | Number of |
| | Salvage | Unallocated | Total | Claims |
| | and | Loss | Net Losses |Outstanding -|
| | Subrogation | Expenses | and Expenses | Direct and |
| | Anticipated | Unpaid | Unpaid | Assumed |
|-------------|--------------|--------------|--------------|-------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|-------------|
|12. Totals | 0 | 0 | 0 | 0 |
- --------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
| | Total Losses and | Loss and Loss Expense Percentage |
| | Loss Expenses Incurred | (Incurred/Premiums Earned) |
| |-----------------------------------------|--------------------------------------------|
| | 25 | 26 | 27 | 28 | 29 | 30 |
| | | | | | | |
| | Direct | | | Direct | | |
| | and Assumed | Ceded | Net | and Assumed | Ceded | Net |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| | | | | | | |
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1987 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 3. 1988 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 4. 1989 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 5. 1990 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 6. 1991 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 7. 1992 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 8. 1993 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 9. 1994 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|10. 1995 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|11. 1996 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
|12. Totals | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
| | | | Net Balance Sheet Reserves |
| | Nontabular Discount | 33 | After Discount |
| |-----------------------------| |-----------------------------|
| | 31 | 32 |Inter-Company | 34 | 35 |
| | | | Pooling | | Loss |
| | | Loss |Participation | Losses | Expenses |
| | Loss | Expense | Percentage | Unpaid | Unpaid |
|-------------|--------------|--------------|--------------|--------------|--------------|
| | | | | | |
| 1. Prior | 0 | 0 | X X X | 0 | 0 |
| 2. 1987 | 0 | 0 | 0.0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0.0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0.0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0.0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0.0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0.0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0.0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0.0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0.0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0.0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|--------------|
|12. Totals | 0 | 0 | X X X | 0 | 0 |
- ------------------------------------------------------------------------------------------
[NONE]
</TABLE>
90
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 1N - REINSURANCE A
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
| 1 | Premiums Earned | Loss and Loss Expense Payments |
| |-----------------------------------------|-----------------------------------------------------------|
| Years | 2 | 3 | 4 | Loss Payments | Allocated Loss |
| in Which | | | | | Expense Payments |
|Premiums Were| | | |-----------------------------|-----------------------------|
| Earned and | Direct | | Net | 5 | 6 | 7 | 8 |
| Losses Were | and | Ceded | (2 - 3) | Direct | | Direct | |
| Incurred | Assumed | | | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| | | | | | | | |
| 1. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
|10. Totals | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
| 1 | Loss and Loss Expense Payments | |
| |--------------------------------------------| |
| Years | 9 | 10 | 11 | 12 |
| in Which | | | | Number of |
|Premiums Were| Salvage | Unallocated | Total | Claims |
| Earned and | and | Loss | Net Paid | Reported - |
| Losses Were | Subrogation | Expense | (5 - 6 + 7 | Direct and |
| Incurred | Received | Payments | - 8 + 10) | Assumed |
|-------------|--------------|--------------|--------------|--------------|
| | | | | |
| 1. 1988 | 0 | 0 | 0 | X X X |
| 2. 1989 | 0 | 0 | 0 | X X X |
| 3. 1990 | 0 | 0 | 0 | X X X |
| 4. 1991 | 0 | 0 | 0 | X X X |
| 5. 1992 | 0 | 0 | 0 | X X X |
| 6. 1993 | 0 | 0 | 0 | X X X |
| 7. 1994 | 0 | 0 | 0 | X X X |
| 8. 1995 | 0 | 0 | 0 | X X X |
| 9. 1996 | 0 | 0 | 0 | X X X |
|-------------|--------------|--------------|--------------|--------------|
|10. Totals | 0 | 0 | 0 | X X X |
- ---------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | Losses Unpaid | Allocated Loss Expenses Unpaid |
| |--------------------------------------------------------|----------------------------------------------------------|
| | Case Basis | Bulk + IBNR | Case Basis | Bulk + IBNR |
| |---------------------------|----------------------------|-----------------------------|----------------------------|
| | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| | Direct | | Direct | | Direct | | Direct | |
| | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| | | | | | | | | |
| 1. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
|10. Totals | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------
| | | | | |
| | | | | |
| | 21 | 22 | 23 | 24 |
| | | | | Number of |
| | Salvage | Unallocated | Total | Claims |
| | and | Loss | Net Losses |Outstanding -|
| | Subrogation | Expenses | and Expenses | Direct and |
| | Anticipated | Unpaid | Unpaid | Assumed |
|-------------|--------------|--------------|--------------|-------------|
| | | | | |
| 1. 1988 | 0 | 0 | 0 | X X X |
| 2. 1989 | 0 | 0 | 0 | X X X |
| 3. 1990 | 0 | 0 | 0 | X X X |
| 4. 1991 | 0 | 0 | 0 | X X X |
| 5. 1992 | 0 | 0 | 0 | X X X |
| 6. 1993 | 0 | 0 | 0 | X X X |
| 7. 1994 | 0 | 0 | 0 | X X X |
| 8. 1995 | 0 | 0 | 0 | X X X |
| 9. 1996 | 0 | 0 | 0 | X X X |
|-------------|--------------|--------------|--------------|-------------|
|10. Totals | 0 | 0 | 0 | X X X |
- --------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
| | Total Losses and | Loss and Loss Expense Percentage |
| | Loss Expenses Incurred | (Incurred/Premiums Earned) |
| |-----------------------------------------|--------------------------------------------|
| | 25 | 26 | 27 | 28 | 29 | 30 |
| | | | | | | |
| | Direct | | | Direct | | |
| | and Assumed | Ceded | Net | and Assumed | Ceded | Net |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| | | | | | | |
| 1. 1988 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 2. 1989 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 3. 1990 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 4. 1991 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 5. 1992 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 6. 1993 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 7. 1994 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 8. 1995 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 9. 1996 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
|10. Totals | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
| | | | Net Balance Sheet Reserves |
| | Nontabular Discount | 33 | After Discount |
| |-----------------------------| |-----------------------------|
| | 31 | 32 |Inter-Company | 34 | 35 |
| | | | Pooling | | Loss |
| | | Loss |Participation | Losses | Expenses |
| | Loss | Expense | Percentage | Unpaid | Unpaid |
|-------------|--------------|--------------|--------------|--------------|--------------|
| | | | | | |
| 1. 1988 | 0 | 0 | 0.0 | 0 | 0 |
| 2. 1989 | 0 | 0 | 0.0 | 0 | 0 |
| 3. 1990 | 0 | 0 | 0.0 | 0 | 0 |
| 4. 1991 | 0 | 0 | 0.0 | 0 | 0 |
| 5. 1992 | 0 | 0 | 0.0 | 0 | 0 |
| 6. 1993 | 0 | 0 | 0.0 | 0 | 0 |
| 7. 1994 | 0 | 0 | 0.0 | 0 | 0 |
| 8. 1995 | 0 | 0 | 0.0 | 0 | 0 |
| 9. 1996 | 0 | 0 | 0.0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|--------------|
|10. Totals | 0 | 0 | X X X | 0 | 0 |
- ------------------------------------------------------------------------------------------
[NONE]
</TABLE>
91
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 1O - REINSURANCE B
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
| 1 | Premiums Earned | Loss and Loss Expense Payments |
| |-----------------------------------------|-----------------------------------------------------------|
| Years | 2 | 3 | 4 | Loss Payments | Allocated Loss |
| in Which | | | | | Expense Payments |
|Premiums Were| | | |-----------------------------|-----------------------------|
| Earned and | Direct | | Net | 5 | 6 | 7 | 8 |
| Losses Were | and | Ceded | (2 - 3) | Direct | | Direct | |
| Incurred | Assumed | | | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| | | | | | | | |
| 1. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
|10. Totals | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
| 1 | Loss and Loss Expense Payments | |
| |--------------------------------------------| |
| Years | 9 | 10 | 11 | 12 |
| in Which | | | | Number of |
|Premiums Were| Salvage | Unallocated | Total | Claims |
| Earned and | and | Loss | Net Paid | Reported - |
| Losses Were | Subrogation | Expense | (5 - 6 + 7 | Direct and |
| Incurred | Received | Payments | - 8 + 10) | Assumed |
|-------------|--------------|--------------|--------------|--------------|
| | | | | |
| 1. 1988 | 0 | 0 | 0 | X X X |
| 2. 1989 | 0 | 0 | 0 | X X X |
| 3. 1990 | 0 | 0 | 0 | X X X |
| 4. 1991 | 0 | 0 | 0 | X X X |
| 5. 1992 | 0 | 0 | 0 | X X X |
| 6. 1993 | 0 | 0 | 0 | X X X |
| 7. 1994 | 0 | 0 | 0 | X X X |
| 8. 1995 | 0 | 0 | 0 | X X X |
| 9. 1996 | 0 | 0 | 0 | X X X |
|-------------|--------------|--------------|--------------|--------------|
|10. Totals | 0 | 0 | 0 | X X X |
- ---------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | Losses Unpaid | Allocated Loss Expenses Unpaid |
| |--------------------------------------------------------|----------------------------------------------------------|
| | Case Basis | Bulk + IBNR | Case Basis | Bulk + IBNR |
| |---------------------------|----------------------------|-----------------------------|----------------------------|
| | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| | Direct | | Direct | | Direct | | Direct | |
| | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| | | | | | | | | |
| 1. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
|10. Totals | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------
| | | | | |
| | | | | |
| | 21 | 22 | 23 | 24 |
| | | | | Number of |
| | Salvage | Unallocated | Total | Claims |
| | and | Loss | Net Losses |Outstanding -|
| | Subrogation | Expenses | and Expenses | Direct and |
| | Anticipated | Unpaid | Unpaid | Assumed |
|-------------|--------------|--------------|--------------|-------------|
| | | | | |
| 1. 1988 | 0 | 0 | 0 | X X X |
| 2. 1989 | 0 | 0 | 0 | X X X |
| 3. 1990 | 0 | 0 | 0 | X X X |
| 4. 1991 | 0 | 0 | 0 | X X X |
| 5. 1992 | 0 | 0 | 0 | X X X |
| 6. 1993 | 0 | 0 | 0 | X X X |
| 7. 1994 | 0 | 0 | 0 | X X X |
| 8. 1995 | 0 | 0 | 0 | X X X |
| 9. 1996 | 0 | 0 | 0 | X X X |
|-------------|--------------|--------------|--------------|-------------|
|10. Totals | 0 | 0 | 0 | X X X |
- --------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
| | Total Losses and | Loss and Loss Expense Percentage |
| | Loss Expenses Incurred | (Incurred/Premiums Earned) |
| |-----------------------------------------|--------------------------------------------|
| | 25 | 26 | 27 | 28 | 29 | 30 |
| | | | | | | |
| | Direct | | | Direct | | |
| | and Assumed | Ceded | Net | and Assumed | Ceded | Net |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| | | | | | | |
| 1. 1988 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 2. 1989 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 3. 1990 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 4. 1991 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 5. 1992 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 6. 1993 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 7. 1994 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 8. 1995 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 9. 1996 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
|10. Totals | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
| | | | Net Balance Sheet Reserves |
| | Nontabular Discount | 33 | After Discount |
| |-----------------------------| |-----------------------------|
| | 31 | 32 |Inter-Company | 34 | 35 |
| | | | Pooling | | Loss |
| | | Loss |Participation | Losses | Expenses |
| | Loss | Expense | Percentage | Unpaid | Unpaid |
|-------------|--------------|--------------|--------------|--------------|--------------|
| | | | | | |
| 1. 1988 | 0 | 0 | 0.0 | 0 | 0 |
| 2. 1989 | 0 | 0 | 0.0 | 0 | 0 |
| 3. 1990 | 0 | 0 | 0.0 | 0 | 0 |
| 4. 1991 | 0 | 0 | 0.0 | 0 | 0 |
| 5. 1992 | 0 | 0 | 0.0 | 0 | 0 |
| 6. 1993 | 0 | 0 | 0.0 | 0 | 0 |
| 7. 1994 | 0 | 0 | 0.0 | 0 | 0 |
| 8. 1995 | 0 | 0 | 0.0 | 0 | 0 |
| 9. 1996 | 0 | 0 | 0.0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|--------------|
|10. Totals | 0 | 0 | X X X | 0 | 0 |
- ------------------------------------------------------------------------------------------
[NONE]
</TABLE>
92
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 1P - REINSURANCE C
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
| 1 | Premiums Earned | Loss and Loss Expense Payments |
| |-----------------------------------------|-----------------------------------------------------------|
| Years | 2 | 3 | 4 | Loss Payments | Allocated Loss |
| in Which | | | | | Expense Payments |
|Premiums Were| | | |-----------------------------|-----------------------------|
| Earned and | Direct | | Net | 5 | 6 | 7 | 8 |
| Losses Were | and | Ceded | (2 - 3) | Direct | | Direct | |
| Incurred | Assumed | | | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| | | | | | | | |
| 1. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
|10. Totals | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
| 1 | Loss and Loss Expense Payments | |
| |--------------------------------------------| |
| Years | 9 | 10 | 11 | 12 |
| in Which | | | | Number of |
|Premiums Were| Salvage | Unallocated | Total | Claims |
| Earned and | and | Loss | Net Paid | Reported - |
| Losses Were | Subrogation | Expense | (5 - 6 + 7 | Direct and |
| Incurred | Received | Payments | - 8 + 10) | Assumed |
|-------------|--------------|--------------|--------------|--------------|
| | | | | |
| 1. 1988 | 0 | 0 | 0 | X X X |
| 2. 1989 | 0 | 0 | 0 | X X X |
| 3. 1990 | 0 | 0 | 0 | X X X |
| 4. 1991 | 0 | 0 | 0 | X X X |
| 5. 1992 | 0 | 0 | 0 | X X X |
| 6. 1993 | 0 | 0 | 0 | X X X |
| 7. 1994 | 0 | 0 | 0 | X X X |
| 8. 1995 | 0 | 0 | 0 | X X X |
| 9. 1996 | 0 | 0 | 0 | X X X |
|-------------|--------------|--------------|--------------|--------------|
|10. Totals | 0 | 0 | 0 | X X X |
- ---------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | Losses Unpaid | Allocated Loss Expenses Unpaid |
| |--------------------------------------------------------|----------------------------------------------------------|
| | Case Basis | Bulk + IBNR | Case Basis | Bulk + IBNR |
| |---------------------------|----------------------------|-----------------------------|----------------------------|
| | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| | Direct | | Direct | | Direct | | Direct | |
| | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| | | | | | | | | |
| 1. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
|10. Totals | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------
| | | | | |
| | | | | |
| | 21 | 22 | 23 | 24 |
| | | | | Number of |
| | Salvage | Unallocated | Total | Claims |
| | and | Loss | Net Losses |Outstanding -|
| | Subrogation | Expenses | and Expenses | Direct and |
| | Anticipated | Unpaid | Unpaid | Assumed |
|-------------|--------------|--------------|--------------|-------------|
| | | | | |
| 1. 1988 | 0 | 0 | 0 | X X X |
| 2. 1989 | 0 | 0 | 0 | X X X |
| 3. 1990 | 0 | 0 | 0 | X X X |
| 4. 1991 | 0 | 0 | 0 | X X X |
| 5. 1992 | 0 | 0 | 0 | X X X |
| 6. 1993 | 0 | 0 | 0 | X X X |
| 7. 1994 | 0 | 0 | 0 | X X X |
| 8. 1995 | 0 | 0 | 0 | X X X |
| 9. 1996 | 0 | 0 | 0 | X X X |
|-------------|--------------|--------------|--------------|-------------|
|10. Totals | 0 | 0 | 0 | X X X |
- --------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
| | Total Losses and | Loss and Loss Expense Percentage |
| | Loss Expenses Incurred | (Incurred/Premiums Earned) |
| |-----------------------------------------|--------------------------------------------|
| | 25 | 26 | 27 | 28 | 29 | 30 |
| | | | | | | |
| | Direct | | | Direct | | |
| | and Assumed | Ceded | Net | and Assumed | Ceded | Net |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| | | | | | | |
| 1. 1988 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 2. 1989 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 3. 1990 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 4. 1991 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 5. 1992 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 6. 1993 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 7. 1994 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 8. 1995 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 9. 1996 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
|10. Totals | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
| | | | Net Balance Sheet Reserves |
| | Nontabular Discount | 33 | After Discount |
| |-----------------------------| |-----------------------------|
| | 31 | 32 |Inter-Company | 34 | 35 |
| | | | Pooling | | Loss |
| | | Loss |Participation | Losses | Expenses |
| | Loss | Expense | Percentage | Unpaid | Unpaid |
|-------------|--------------|--------------|--------------|--------------|--------------|
| | | | | | |
| 1. 1988 | 0 | 0 | 0.0 | 0 | 0 |
| 2. 1989 | 0 | 0 | 0.0 | 0 | 0 |
| 3. 1990 | 0 | 0 | 0.0 | 0 | 0 |
| 4. 1991 | 0 | 0 | 0.0 | 0 | 0 |
| 5. 1992 | 0 | 0 | 0.0 | 0 | 0 |
| 6. 1993 | 0 | 0 | 0.0 | 0 | 0 |
| 7. 1994 | 0 | 0 | 0.0 | 0 | 0 |
| 8. 1995 | 0 | 0 | 0.0 | 0 | 0 |
| 9. 1996 | 0 | 0 | 0.0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|--------------|
|10. Totals | 0 | 0 | X X X | 0 | 0 |
- ------------------------------------------------------------------------------------------
[NONE]
</TABLE>
93
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 1Q - REINSURANCE D
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
| 1 | Premiums Earned | Loss and Loss Expense Payments |
| |-----------------------------------------|-----------------------------------------------------------|
| Years | 2 | 3 | 4 | Loss Payments | Allocated Loss |
| in Which | | | | | Expense Payments |
|Premiums Were| | | |-----------------------------|-----------------------------|
| Earned and | Direct | | Net | 5 | 6 | 7 | 8 |
| Losses Were | and | Ceded | (2 - 3) | Direct | | Direct | |
| Incurred | Assumed | | | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| | | | | | | | |
| 1. Prior | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| 3. Totals | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
| 1 | Loss and Loss Expense Payments | |
| |--------------------------------------------| |
| Years | 9 | 10 | 11 | 12 |
| in Which | | | | Number of |
|Premiums Were| Salvage | Unallocated | Total | Claims |
| Earned and | and | Loss | Net Paid | Reported - |
| Losses Were | Subrogation | Expense | (5 - 6 + 7 | Direct and |
| Incurred | Received | Payments | - 8 + 10) | Assumed |
|-------------|--------------|--------------|--------------|--------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | X X X |
| 2. 1987 | 0 | 0 | 0 | X X X |
|-------------|--------------|--------------|--------------|--------------|
| 3. Totals | 0 | 0 | 0 | X X X |
- ---------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | Losses Unpaid | Allocated Loss Expenses Unpaid |
| |--------------------------------------------------------|----------------------------------------------------------|
| | Case Basis | Bulk + IBNR | Case Basis | Bulk + IBNR |
| |---------------------------|----------------------------|-----------------------------|----------------------------|
| | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| | Direct | | Direct | | Direct | | Direct | |
| | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| | | | | | | | | |
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| 3. Totals | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------
| | | | | |
| | | | | |
| | 21 | 22 | 23 | 24 |
| | | | | Number of |
| | Salvage | Unallocated | Total | Claims |
| | and | Loss | Net Losses |Outstanding -|
| | Subrogation | Expenses | and Expenses | Direct and |
| | Anticipated | Unpaid | Unpaid | Assumed |
|-------------|--------------|--------------|--------------|-------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | X X X |
| 2. 1987 | 0 | 0 | 0 | X X X |
|-------------|--------------|--------------|--------------|-------------|
| 3. Totals | 0 | 0 | 0 | X X X |
- --------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
| | Total Losses and | Loss and Loss Expense Percentage |
| | Loss Expenses Incurred | (Incurred/Premiums Earned) |
| |-----------------------------------------|--------------------------------------------|
| | 25 | 26 | 27 | 28 | 29 | 30 |
| | | | | | | |
| | Direct | | | Direct | | |
| | and Assumed | Ceded | Net | and Assumed | Ceded | Net |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| | | | | | | |
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1987 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| 3. Totals | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
| | | | Net Balance Sheet Reserves |
| | Nontabular Discount | 33 | After Discount |
| |-----------------------------| |-----------------------------|
| | 31 | 32 |Inter-Company | 34 | 35 |
| | | | Pooling | | Loss |
| | | Loss |Participation | Losses | Expenses |
| | Loss | Expense | Percentage | Unpaid | Unpaid |
|-------------|--------------|--------------|--------------|--------------|--------------|
| | | | | | |
| 1. Prior | 0 | 0 | X X X | 0 | 0 |
| 2. 1987 | 0 | 0 | 0.0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|--------------|
| 3. Totals | 0 | 0 | X X X | 0 | 0 |
- ------------------------------------------------------------------------------------------
[NONE]
</TABLE>
94
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 1R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
| 1 | Premiums Earned | Loss and Loss Expense Payments |
| |-----------------------------------------|-----------------------------------------------------------|
| Years | 2 | 3 | 4 | Loss Payments | Allocated Loss |
| in Which | | | | | Expense Payments |
|Premiums Were| | | |-----------------------------|-----------------------------|
| Earned and | Direct | | Net | 5 | 6 | 7 | 8 |
| Losses Were | and | Ceded | (2 - 3) | Direct | | Direct | |
| Incurred | Assumed | | | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| | | | | | | | |
| 1. Prior | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
|12. Totals | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
| 1 | Loss and Loss Expense Payments | |
| |--------------------------------------------| |
| Years | 9 | 10 | 11 | 12 |
| in Which | | | | Number of |
|Premiums Were| Salvage | Unallocated | Total | Claims |
| Earned and | and | Loss | Net Paid | Reported - |
| Losses Were | Subrogation | Expense | (5 - 6 + 7 | Direct and |
| Incurred | Received | Payments | - 8 + 10) | Assumed |
|-------------|--------------|--------------|--------------|--------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | X X X |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|
|12. Totals | 0 | 0 | 0 | X X X |
- ---------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | Losses Unpaid | Allocated Loss Expenses Unpaid |
| |--------------------------------------------------------|----------------------------------------------------------|
| | Case Basis | Bulk + IBNR | Case Basis | Bulk + IBNR |
| |---------------------------|----------------------------|-----------------------------|----------------------------|
| | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| | Direct | | Direct | | Direct | | Direct | |
| | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| | | | | | | | | |
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
|12. Totals | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------
| | | | | |
| | | | | |
| | 21 | 22 | 23 | 24 |
| | | | | Number of |
| | Salvage | Unallocated | Total | Claims |
| | and | Loss | Net Losses |Outstanding -|
| | Subrogation | Expenses | and Expenses | Direct and |
| | Anticipated | Unpaid | Unpaid | Assumed |
|-------------|--------------|--------------|--------------|-------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|-------------|
|12. Totals | 0 | 0 | 0 | 0 |
- --------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
| | Total Losses and | Loss and Loss Expense Percentage |
| | Loss Expenses Incurred | (Incurred/Premiums Earned) |
| |-----------------------------------------|--------------------------------------------|
| | 25 | 26 | 27 | 28 | 29 | 30 |
| | | | | | | |
| | Direct | | | Direct | | |
| | and Assumed | Ceded | Net | and Assumed | Ceded | Net |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| | | | | | | |
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1987 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 3. 1988 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 4. 1989 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 5. 1990 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 6. 1991 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 7. 1992 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 8. 1993 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 9. 1994 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|10. 1995 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|11. 1996 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
|12. Totals | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
| | | | Net Balance Sheet Reserves |
| | Nontabular Discount | 33 | After Discount |
| |-----------------------------| |-----------------------------|
| | 31 | 32 |Inter-Company | 34 | 35 |
| | | | Pooling | | Loss |
| | | Loss |Participation | Losses | Expenses |
| | Loss | Expense | Percentage | Unpaid | Unpaid |
|-------------|--------------|--------------|--------------|--------------|--------------|
| | | | | | |
| 1. Prior | 0 | 0 | X X X | 0 | 0 |
| 2. 1987 | 0 | 0 | 0.0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0.0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0.0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0.0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0.0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0.0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0.0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0.0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0.0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0.0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|--------------|
|12. Totals | 0 | 0 | X X X | 0 | 0 |
- ------------------------------------------------------------------------------------------
[NONE]
</TABLE>
95
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 1R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS-MADE
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
| 1 | Premiums Earned | Loss and Loss Expense Payments |
| |-----------------------------------------|-----------------------------------------------------------|
| Years | 2 | 3 | 4 | Loss Payments | Allocated Loss |
| in Which | | | | | Expense Payments |
|Premiums Were| | | |-----------------------------|-----------------------------|
| Earned and | Direct | | Net | 5 | 6 | 7 | 8 |
| Losses Were | and | Ceded | (2 - 3) | Direct | | Direct | |
| Incurred | Assumed | | | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| | | | | | | | |
| 1. Prior | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
|12. Totals | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
| 1 | Loss and Loss Expense Payments | |
| |--------------------------------------------| |
| Years | 9 | 10 | 11 | 12 |
| in Which | | | | Number of |
|Premiums Were| Salvage | Unallocated | Total | Claims |
| Earned and | and | Loss | Net Paid | Reported - |
| Losses Were | Subrogation | Expense | (5 - 6 + 7 | Direct and |
| Incurred | Received | Payments | - 8 + 10) | Assumed |
|-------------|--------------|--------------|--------------|--------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | X X X |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|
|12. Totals | 0 | 0 | 0 | X X X |
- ---------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | Losses Unpaid | Allocated Loss Expenses Unpaid |
| |--------------------------------------------------------|----------------------------------------------------------|
| | Case Basis | Bulk + IBNR | Case Basis | Bulk + IBNR |
| |---------------------------|----------------------------|-----------------------------|----------------------------|
| | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| | Direct | | Direct | | Direct | | Direct | |
| | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| | | | | | | | | |
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
|12. Totals | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------
| | | | | |
| | | | | |
| | 21 | 22 | 23 | 24 |
| | | | | Number of |
| | Salvage | Unallocated | Total | Claims |
| | and | Loss | Net Losses |Outstanding -|
| | Subrogation | Expenses | and Expenses | Direct and |
| | Anticipated | Unpaid | Unpaid | Assumed |
|-------------|--------------|--------------|--------------|-------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|-------------|
|12. Totals | 0 | 0 | 0 | 0 |
- --------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
| | Total Losses and | Loss and Loss Expense Percentage |
| | Loss Expenses Incurred | (Incurred/Premiums Earned) |
| |-----------------------------------------|--------------------------------------------|
| | 25 | 26 | 27 | 28 | 29 | 30 |
| | | | | | | |
| | Direct | | | Direct | | |
| | and Assumed | Ceded | Net | and Assumed | Ceded | Net |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| | | | | | | |
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1987 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 3. 1988 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 4. 1989 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 5. 1990 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 6. 1991 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 7. 1992 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 8. 1993 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 9. 1994 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|10. 1995 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|11. 1996 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
|12. Totals | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
| | | | Net Balance Sheet Reserves |
| | Nontabular Discount | 33 | After Discount |
| |-----------------------------| |-----------------------------|
| | 31 | 32 |Inter-Company | 34 | 35 |
| | | | Pooling | | Loss |
| | | Loss |Participation | Losses | Expenses |
| | Loss | Expense | Percentage | Unpaid | Unpaid |
|-------------|--------------|--------------|--------------|--------------|--------------|
| | | | | | |
| 1. Prior | 0 | 0 | X X X | 0 | 0 |
| 2. 1987 | 0 | 0 | 0.0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0.0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0.0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0.0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0.0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0.0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0.0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0.0 | 0 | 0 |
|10. 1995 | 0 | 0 | 0.0 | 0 | 0 |
|11. 1996 | 0 | 0 | 0.0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|--------------|
|12. Totals | 0 | 0 | X X X | 0 | 0 |
- ------------------------------------------------------------------------------------------
[NONE]
</TABLE>
96
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 1S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
| 1 | Premiums Earned | Loss and Loss Expense Payments |
| |-----------------------------------------|-----------------------------------------------------------|
| Years | 2 | 3 | 4 | Loss Payments | Allocated Loss |
| in Which | | | | | Expense Payments |
|Premiums Were| | | |-----------------------------|-----------------------------|
| Earned and | Direct | | Net | 5 | 6 | 7 | 8 |
| Losses Were | and | Ceded | (2 - 3) | Direct | | Direct | |
| Incurred | Assumed | | | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| | | | | | | | |
| 1. Prior | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 2. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| 4. Totals | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
($000 omitted)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
| 1 | Loss and Loss Expense Payments | |
| |--------------------------------------------| |
| Years | 9 | 10 | 11 | 12 |
| in Which | | | | Number of |
|Premiums Were| Salvage | Unallocated | Total | Claims |
| Earned and | and | Loss | Net Paid | Reported - |
| Losses Were | Subrogation | Expense | (5 - 6 + 7 | Direct and |
| Incurred | Received | Payments | - 8 + 10) | Assumed |
|-------------|--------------|--------------|--------------|--------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | X X X |
| 2. 1995 | 0 | 0 | 0 | X X X |
| 3. 1996 | 0 | 0 | 0 | X X X |
|-------------|--------------|--------------|--------------|--------------|
| 4. Totals | 0 | 0 | 0 | X X X |
- ---------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | Losses Unpaid | Allocated Loss Expenses Unpaid |
| |--------------------------------------------------------|----------------------------------------------------------|
| | Case Basis | Bulk + IBNR | Case Basis | Bulk + IBNR |
| |---------------------------|----------------------------|-----------------------------|----------------------------|
| | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| | Direct | | Direct | | Direct | | Direct | |
| | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded | and Assumed | Ceded |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| | | | | | | | | |
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1995 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1996 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|-------------|
| 4. Totals | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------
| | | | | |
| | | | | |
| | 21 | 22 | 23 | 24 |
| | | | | Number of |
| | Salvage | Unallocated | Total | Claims |
| | and | Loss | Net Losses |Outstanding -|
| | Subrogation | Expenses | and Expenses | Direct and |
| | Anticipated | Unpaid | Unpaid | Assumed |
|-------------|--------------|--------------|--------------|-------------|
| | | | | |
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1995 | 0 | 0 | 0 | 0 |
| 3. 1996 | 0 | 0 | 0 | 0 |
|-------------|--------------|--------------|--------------|-------------|
| 4. Totals | 0 | 0 | 0 | 0 |
- --------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
| | Total Losses and | Loss and Loss Expense Percentage |
| | Loss Expenses Incurred | (Incurred/Premiums Earned) |
| |-----------------------------------------|--------------------------------------------|
| | 25 | 26 | 27 | 28 | 29 | 30 |
| | | | | | | |
| | Direct | | | Direct | | |
| | and Assumed | Ceded | Net | and Assumed | Ceded | Net |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| | | | | | | |
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1995 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
| 3. 1996 | 0 | 0 | 0 | 0.0 | 0.0 | 0.0 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|
| 4. Totals | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
| | | | Net Balance Sheet Reserves |
| | Nontabular Discount | 33 | After Discount |
| |-----------------------------| |-----------------------------|
| | 31 | 32 |Inter-Company | 34 | 35 |
| | | | Pooling | | Loss |
| | | Loss |Participation | Losses | Expenses |
| | Loss | Expense | Percentage | Unpaid | Unpaid |
|-------------|--------------|--------------|--------------|--------------|--------------|
| | | | | | |
| 1. Prior | 0 | 0 | X X X | 0 | 0 |
| 2. 1995 | 0 | 0 | 0.0 | 0 | 0 |
| 3. 1996 | 0 | 0 | 0.0 | 0 | 0 |
|-------------|--------------|--------------|--------------|--------------|--------------|
| 4. Totals | 0 | 0 | X X X | 0 | 0 |
- ------------------------------------------------------------------------------------------
[NONE]
</TABLE>
97
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
<TABLE>
<CAPTION>
SCHEDULE P - PART 2A - HOMEOWNERS/FARMOWNERS
- -----------------------------------------------------------------------------------------------------------------------
| 1 | INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED)
| |--------------------------------------------------------------------------------------------------
| Years in Which | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Losses Were | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
| Incurred | | | | | | | |
|-------------------|-------------|-------------|-------------|-------------|-------------|-------------|-------------|
| <S> | <C> | <C> | <C> | <C> | <C> | <C> | <C> |
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
| | INCURRED LOSSES AND ALLOCATED EXPENSES | |
| 1 | REPORTED AT YEAR END ($000 OMITTED) | |
| |---------------------------------------------------------------------- |
| Years in Which | 9 | 10 | 11 | 12 | 13 |
| Losses Were | 1994 | 1995 | 1996 | One Year | Two Year |
| Incurred | | | | | |
| ----------------- |-------------|-------------|-------------|--------------|--------------|
| <S> | <C> | <C> | <C> | <C> | <C> |
| 1. Prior | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 | X X X |
| 11. 1996 | X X X | X X X | 0 | X X X | X X X |
| ------------------------------------------------------------------------------------------
12. Totals | 0 | 0 |
------------------------------
</TABLE>
NONE
<TABLE>
<CAPTION>
SCHEDULE P - PART 2B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
- -----------------------------------------------------------------------------------------------------------------------
| <S> | <C> | <C> | <C> | <C> | <C> | <C> | <C> |
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
| <S> | <C> | <C> | <C> | <C> | <C> |
| 1. Prior | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 | X X X |
| 11. 1996 | X X X | X X X | 0 | X X X | X X X |
- --------------------------------------------------------------|--------------|--------------|
12. Totals | 0 | 0 |
------------------------------
</TABLE>
NONE
<TABLE>
<CAPTION>
SCHEDULE P - PART 2C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
- ------------------------------------------------------------------------------------------------------------------------
| <S> | <C> | <C> | <C> | <C> | <C> | <C> | <C> |
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
| <S> | <C> | <C> | <C> | <C> | <C> |
| 1. Prior | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 | X X X |
| 11. 1996 | X X X | X X X | 0 | X X X | X X X |
- ---------------------------------------------------------------------------------------------
12. Totals | 0 | 0 |
------------------------------
</TABLE>
NONE
<TABLE>
<CAPTION>
SCHEDULE P - PART 2D - WORKERS' COMPENSATION
- -----------------------------------------------------------------------------------------------------------------------
| <S> | <C> | <C> | <C> | <C> | <C> | <C> | <C> |
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
| <S> | <C> | <C> | <C> | <C> | <C> |
| 1. Prior | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 | X X X |
| 11. 1996 | X X X | X X X | 0 | X X X | X X X |
- --------------------------------------------------------------|--------------|--------------|
12. Totals | 0 | 0 |
------------------------------
</TABLE>
NONE
<TABLE>
<CAPTION>
SCHEDULE P - PART 2E - COMMERCIAL MULTIPLE PERIL
- -----------------------------------------------------------------------------------------------------------------------
| <S> | <C> | <C> | <C> | <C> | <C> | <C> | <C> |
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
| <S> | <C> | <C> | <C> | <C> | <C> |
| 1. Prior | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 | X X X |
| 11. 1996 | X X X | X X X | 0 | X X X | X X X |
- --------------------------------------------------------------|--------------|--------------|
12. Totals | 0 | 0 |
------------------------------
</TABLE>
NONE
98
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 2F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
<TABLE>
<CAPTION>
|-------------------|-------------------------------------------------------------------------------------------------|
| 1 | INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED) |
| |-------------------------------------------------------------------------------------------------|
| Years in Which | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Losses Were | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
| Incurred | | | | | | | |
|-------------------|-------------|-------------|-------------|-------------|-------------|-------------|-------------|
<S> <C> <C> <C> <C> <C> <C> <C> <C>
| 1. Prior | 33,811 | 44,294 | 44,298 | 44,718 | 42,861 | 41,298 | 38,824 |
| 2. 1987 | 2,993 | 799 | 1,493 | 2,440 | 2,542 | 2,378 | 2,265 |
| 3. 1988 | X X X | 400 | 335 | 525 | 305 | 422 | 750 |
| 4. 1989 | X X X | X X X | 145 | 663 | 513 | 507 | 962 |
| 5. 1990 | X X X | X X X | X X X | 75 | 294 | 430 | 1,931 |
| 6. 1991 | X X X | X X X | X X X | X X X | 56 | 261 | 1,148 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 40 | 659 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 798 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
|-------------------------------------------------------------------------------------------|
| 1 | | Development |
| |-----------------------------------------|-----------------------------|
| Years in Which | 9 | 10 | 11 | 12 | 13 |
| Losses Were | 1994 | 1995 | 1996 | One Year | Two Year |
| Incurred | | | | | |
|-------------------| ------------|-------------|-------------|--------------|--------------|
<S> <C> <C> <C> <C> <C> <C>
| 1. Prior | 39,316 | 39,730 | 40,801 | 1,071 | 1,485 |
| 2. 1987 | 2,326 | 2,171 | 1,966 | (205)| (360)|
| 3. 1988 | 731 | 722 | 680 | (42)| (51)|
| 4. 1989 | 962 | 834 | 731 | (103)| (231)|
| 5. 1990 | 1,748 | 1,468 | 1,302 | (166)| (446)|
| 6. 1991 | 924 | 632 | 481 | (151)| (443)|
| 7. 1992 | 1,178 | 1,106 | 1,162 | 56 | (16)|
| 8. 1993 | 1,480 | 1,703 | 2,778 | 1,075 | 1,298 |
| 9. 1994 | 330 | 729 | 960 | 231 | 630 |
| 10. 1995 | X X X | 863 | 1,069 | 206 | X X X |
| 11. 1996 | X X X | X X X | 663 | X X X | X X |
----------------------------------------------------------------------------------------------
12. Totals | 1,972 | 1,866 |
-------------------------------
</TABLE>
SCHEDULE P - PART 2F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS-MADE
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
| 1. Prior | 1,385 | 1,560 | 796 | 884 | 808 | 1,117 | 1,060 |
| 2. 1987 | 1,911 | 2,883 | 4,140 | 3,139 | 2,717 | 3,277 | 3,040 |
| 3. 1988 | X X X | 10,002 | 10,792 | 11,009 | 9,628 | 9,781 | 8,896 |
| 4. 1989 | X X X | X X X | 18,445 | 16,419 | 15,053 | 15,065 | 15,767 |
| 5. 1990 | X X X | X X X | X X X | 18,423 | 18,227 | 16,373 | 15,029 |
| 6. 1991 | X X X | X X X | X X X | X X X | 19,763 | 18,098 | 16,651 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 17,443 | 16,204 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 14,278 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| 1. Prior | 1,063 | 1,063 | 1,061 | (2)| (2)|
| 2. 1987 | 3,048 | 3,063 | 3,191 | 128 | 143 |
| 3. 1988 | 8,728 | 8,943 | 8,984 | 41 | 256 |
| 4. 1989 | 15,584 | 15,784 | 15,731 | (53)| 147 |
| 5. 1990 | 14,819 | 14,720 | 15,019 | 299 | 200 |
| 6. 1991 | 16,046 | 15,879 | 16,546 | 667 | 500 |
| 7. 1992 | 14,792 | 13,933 | 13,063 | (870)| (1,729)|
| 8. 1993 | 14,177 | 13,007 | 13,067 | 60 | (1,110)|
| 9. 1994 | 14,812 | 14,816 | 15,780 | 964 | 968 |
| 10. 1995 | X X X | 15,598 | 17,231 | 1,633 | X X X |
| 11. 1996 | X X X | X X X | 13,409 | X X X | X X X |
--------------------------------------------------------------|--------------|--------------|
12. Totals | 2,867 | (627)|
-------------------------------
</TABLE>
<PAGE>
SCHEDULE P - PART 2G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT
(ALL PERILS), BOILER AND MACHINERY)
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| 1. Prior | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 | X X X |
| 11. 1996 | X X X | X X X | 0 | X X X | X X X |
--------------------------------------------------------------|--------------|--------------|
12. Totals | 0 | 0 |
-------------------------------
</TABLE>
NONE
SCHEDULE P - PART 2H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| 1. Prior | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 | X X X |
| 11. 1996 | X X X | X X X | 0 | X X X | X X X |
--------------------------------------------------------------|--------------|--------------|
12. Totals | 0 | 0 |
-------------------------------
</TABLE>
NONE
SCHEDULE P - PART 2H - SECTION 2 - OTHER LIABILITY - CLAIMS-MADE
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| 1. Prior | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 | X X X |
| 11. 1996 | X X X | X X X | 0 | X X X | X X X |
--------------------------------------------------------------|--------------|--------------|
12. Totals | 0 | 0 |
-------------------------------
</TABLE>
NONE
99
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
<TABLE>
<CAPTION>
SCHEDULE P - PART 2I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE,
EARTHQUAKE, GLASS, BURGLARY AND THEFT)
- -----------------------------------------------------------------------------------------------------------------------
| 1 | INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED) |
| |--------------------------------------------------------------------------------------------------
| Years in Which | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Losses Were | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
| Incurred | | | | | | | |
|-------------------|-------------|-------------|-------------|-------------|-------------|-------------|-------------|
| <S> | <C> | <C> | <C> | <C> | <C> | <C> | <C> |
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 3. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- -----------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
| 1 | | Development |
| |-----------------------------------------|-----------------------------|
| Years in Which | 9 | 10 | 11 | 12 | 13 |
| Losses Were | 1994 | 1995 | 1996 | One Year | Two Year |
| Incurred | | | | | |
|-------------------|-------------|-------------|-------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 |
| 2. 1995 | X X X | 0 | 0 | 0 | X X X |
| 3. 1996 | X X X | X X X | 0 | X X X | X X X |
- --------------------------------------------------------------|--------------|--------------|
4. Totals | 0 | 0 |
-------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 2J - AUTO PHYSICAL DAMAGE
- -----------------------------------------------------------------------------------------------------------------------
| <S> | <C> | <C> | <C> | <C> | <C> | <C> | <C> |
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 3. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ----------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
| <S> | <C> | <C> | <C> | <C> | <C>
| 1. Prior | 0 | 0 | 0 | 0 | 0 |
| 2. 1995 | X X X | 0 | 0 | 0 | X X X |
| 3. 1996 | X X X | X X X | 0 | X X X | X X X |
- --------------------------------------------------------------|--------------|--------------|
4. Totals | 0 | 0 |
-------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 2K - FIDELITY/SURETY
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
| <S> | <C> | <C> | <C> | <C> | <C> | <C> | <C> |
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 3. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ----------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
| <S> | <C> | <C> | <C> | <C> | <C> |
| 1. Prior | 0 | 0 | 0 | 0 | 0 |
| 2. 1995 | X X X | 0 | 0 | 0 | X X X |
| 3. 1996 | X X X | X X X | 0 | X X X | X X X |
- --------------------------------------------------------------|--------------|--------------|
4. Totals | 0 | 0 |
-------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 2L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
- -----------------------------------------------------------------------------------------------------------------------
| <S> | <C> | <C> | <C> | <C> | <C> | <C> | <C> |
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 3. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ----------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
| <S> | <C> | <C> | <C> | <C> | <C> |
| 1. Prior | 0 | 0 | 0 | 0 | 0 |
| 2. 1995 | X X X | 0 | 0 | 0 | X X X |
| 3. 1996 | X X X | X X X | 0 | X X X | X X X |
- --------------------------------------------------------------|--------------|--------------|
4. Totals | 0 | 0 |
-------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 2M - INTERNATIONAL
- -----------------------------------------------------------------------------------------------------------------------
| <S> | <C> | <C> | <C> | <C> | <C> | <C> | <C> |
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- -----------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
| <S> | <C> | <C> | <C> | <C> | <C> |
| 1. Prior | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 | X X X |
| 11. 1996 | X X X | X X X | 0 | X X X | X X X |
- --------------------------------------------------------------|--------------|--------------|
12. Totals | 0 | 0 |
------------------------------
[NONE]
</TABLE>
100
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 2N - REINSURANCE A
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
| 1 | INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED) |
| |-------------------------------------------------------------------------------------------------|
| Years in Which | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Losses Were | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
| Incurred | | | | | | | |
|---------------------------------------------------------------------------------------------------------------------|
| 1. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 3. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 4. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 5. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 6. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 7. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 8. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
| 1 | | Development |
| |-----------------------------------------------------------------------|
| Years in Which | 9 | 10 | 11 | 12 | 13 |
| Losses Were | 1994 | 1995 | 1996 | One Year | Two Year |
| Incurred | | | | | |
|-------------------|-------------|-------------|-------------|--------------|--------------|
| 1. 1988 | 0 | 0 | 0 | 0 | 0 |
| 2. 1989 | 0 | 0 | 0 | 0 | 0 |
| 3. 1990 | 0 | 0 | 0 | 0 | 0 |
| 4. 1991 | 0 | 0 | 0 | 0 | 0 |
| 5. 1992 | 0 | 0 | 0 | 0 | 0 |
| 6. 1993 | 0 | 0 | 0 | 0 | 0 |
| 7. 1994 | 0 | 0 | 0 | 0 | 0 |
| 8. 1995 | X X X | 0 | 0 | 0 | X X X |
| 9. 1996 | X X X | X X X | 0 | X X X | X X X |
- ---------------------------------------------------------------------------------------------
10. Totals | 0 | 0 |
-------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 2O - REINSURANCE B
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
| 1. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 3. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 4. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 5. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 6. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 7. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 8. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
| 1. 1988 | 0 | 0 | 0 | 0 | 0 |
| 2. 1989 | 0 | 0 | 0 | 0 | 0 |
| 3. 1990 | 0 | 0 | 0 | 0 | 0 |
| 4. 1991 | 0 | 0 | 0 | 0 | 0 |
| 5. 1992 | 0 | 0 | 0 | 0 | 0 |
| 6. 1993 | 0 | 0 | 0 | 0 | 0 |
| 7. 1994 | 0 | 0 | 0 | 0 | 0 |
| 8. 1995 | X X X | 0 | 0 | 0 | X X X |
| 9. 1996 | X X X | X X X | 0 | X X X | X X X |
- ---------------------------------------------------------------------------------------------
10. Totals | 0 | 0 |
-------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 2P - REINSURANCE C
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
| 1. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 3. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 4. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 5. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 6. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 7. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 8. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
| 1. 1988 | 0 | 0 | 0 | 0 | 0 |
| 2. 1989 | 0 | 0 | 0 | 0 | 0 |
| 3. 1990 | 0 | 0 | 0 | 0 | 0 |
| 4. 1991 | 0 | 0 | 0 | 0 | 0 |
| 5. 1992 | 0 | 0 | 0 | 0 | 0 |
| 6. 1993 | 0 | 0 | 0 | 0 | 0 |
| 7. 1994 | 0 | 0 | 0 | 0 | 0 |
| 8. 1995 | X X X | 0 | 0 | 0 | X X X |
| 9. 1996 | X X X | X X X | 0 | X X X | X X X |
- ---------------------------------------------------------------------------------------------
10. Totals | 0 | 0 |
-------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 2Q - REINSURANCE D
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 |
- ---------------------------------------------------------------------------------------------
3. Totals | 0 | 0 |
-------------------------------
[NONE]
</TABLE>
101
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 2R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
<TABLE>
<CAPTION>
|--------------------------------------------------------------------------------------------------------
| 1 | INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED) |
| | |
|--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
| Years in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Losses Were | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
| Incurred | | | | | | |
|-------------------|-------------|-------------|-------------|-------------|-------------|-------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
---------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
|-----------------------------------------------------------------------------------------------------------
| 1 | | Development |
| | | |
|----------------------------------------------------------------------------------------------------------|
| Years in Which | 8 | 9 | 10 | 11 | 12 | 13 |
| Losses Were | 1993 | 1994 | 1995 | 1996 | One Year | Two Year |
| Incurred | | | | | | |
|-------------------| -------------|-------------|-------------|-------------|--------------|--------------|
<S> <C> <C> <C> <C> <C> <C> <C>
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | X X X | 0 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | X X X | 0 | 0 | 0 | X X X |
| 11. 1996 | X X X | X X X | X X X | 0 | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------|
12. Totals | 0 | 0 |
-----------------------------
</TABLE>
SCHEDULE P - PART 2R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS-MADE
<TABLE>
<CAPTION>
|-------------------|-------------|-------------|-------------|-------------|-------------|-------------|
<S> <C> <C> <C> <C> <C> <C> <C>
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ----------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
|-------------------|--------------|-------------|-------------|-------------|--------------|--------------|
<S> <C> <C> <C> <C> <C> <C> <C>
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9. 1994 | X X X | 0 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | X X X | 0 | 0 | 0 | X X X |
| 11. 1996 | X X X | X X X | X X X | 0 | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------|
12. Totals | 0 | 0 |
-----------------------------
</TABLE>
SCHEDULE P - PART 2S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
<TABLE>
<CAPTION>
|--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 3 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
---------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------|
| 1. Prior | X X X | 0 | 0 | 0 | 0 | 0 |
| 2. 1995 | X X X | X X X | 0 | 0 | 0 | X X X |
| 3 1996 | X X X | X X X | X X X | 0 | X X X | X X X |
----------------------------------------------------------------------------|--------------|--------------|
4. Totals | 0 | 0 |
-------------------------------
</TABLE>
102
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 3A - HOMEOWNERS/FARMOWNERS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1 | CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED) |
| |-------------------------------------------------------------------------------------------------|
| Years in Which | | | | | | | |
| Losses Were | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
| | | | | | | | |
|----------------------------------------------------------------------------------------------------------------------|
| 1. Prior | 000 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------
| 1 | | 12 | 13 |
| |-----------------------------------------| Number of | Number of |
| Years in Which | | | | Claims | Claims |
| Losses Were | 9 | 10 | 11 | Closed | Closed |
| Incurred | 1994 | 1995 | 1996 | With Loss |Without Loss |
| | | | | Payment | Payment |
|--------------------|-------------|-------------|-------------|-------------|-------------|
| 1. Prior | 0 | 0 | 0 | | |
| 2. 1987 | 0 | 0 | 0 | | |
| 3. 1988 | 0 | 0 | 0 | | |
| 4. 1989 | 0 | 0 | 0 | | |
| 5. 1990 | 0 | 0 | 0 | | |
| 6. 1991 | 0 | 0 | 0 | | |
| 7. 1992 | 0 | 0 | 0 | | |
| 8. 1993 | 0 | 0 | 0 | | |
| 9. 1994 | 0 | 0 | 0 | | |
| 10. 1995 | X X X | 0 | 0 | | |
| 11. 1996 | X X X | X X X | 0 | | |
- --------------------------------------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 3B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. Prior | 000 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 | | |
| 2. 1987 | 0 | 0 | 0 | | |
| 3. 1988 | 0 | 0 | 0 | | |
| 4. 1989 | 0 | 0 | 0 | | |
| 5. 1990 | 0 | 0 | 0 | | |
| 6. 1991 | 0 | 0 | 0 | | |
| 7. 1992 | 0 | 0 | 0 | | |
| 8. 1993 | 0 | 0 | 0 | | |
| 9. 1994 | 0 | 0 | 0 | | |
| 10. 1995 | X X X | 0 | 0 | | |
| 11. 1996 | X X X | X X X | 0 | | |
- --------------------------------------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 3C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. Prior | 000 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 | | |
| 2. 1987 | 0 | 0 | 0 | | |
| 3. 1988 | 0 | 0 | 0 | | |
| 4. 1989 | 0 | 0 | 0 | | |
| 5. 1990 | 0 | 0 | 0 | | |
| 6. 1991 | 0 | 0 | 0 | | |
| 7. 1992 | 0 | 0 | 0 | | |
| 8. 1993 | 0 | 0 | 0 | | |
| 9. 1994 | 0 | 0 | 0 | | |
| 10. 1995 | X X X | 0 | 0 | | |
| 11. 1996 | X X X | X X X | 0 | | |
- --------------------------------------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 3D - WORKERS' COMPENSATION
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. Prior | 000 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 | | |
| 2. 1987 | 0 | 0 | 0 | | |
| 3. 1988 | 0 | 0 | 0 | | |
| 4. 1989 | 0 | 0 | 0 | | |
| 5. 1990 | 0 | 0 | 0 | | |
| 6. 1991 | 0 | 0 | 0 | | |
| 7. 1992 | 0 | 0 | 0 | | |
| 8. 1993 | 0 | 0 | 0 | | |
| 9. 1994 | 0 | 0 | 0 | | |
| 10. 1995 | X X X | 0 | 0 | | |
| 11. 1996 | X X X | X X X | 0 | | |
- --------------------------------------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 3E - COMMERCIAL MULTIPLE PERIL
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. Prior | 000 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 | | |
| 2. 1987 | 0 | 0 | 0 | | |
| 3. 1988 | 0 | 0 | 0 | | |
| 4. 1989 | 0 | 0 | 0 | | |
| 5. 1990 | 0 | 0 | 0 | | |
| 6. 1991 | 0 | 0 | 0 | | |
| 7. 1992 | 0 | 0 | 0 | | |
| 8. 1993 | 0 | 0 | 0 | | |
| 9. 1994 | 0 | 0 | 0 | | |
| 10. 1995 | X X X | 0 | 0 | | |
| 11. 1996 | X X X | X X X | 0 | | |
- --------------------------------------------------------------------------------------------
[NONE]
</TABLE>
103
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 3F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
| 1 | CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED)
| |--------------------------------------------------------------------------------------------------
| Years in Which | | | | | | | |
| Losses Were | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
| | | | | | | | |
|--------------------|-------------|-------------|-------------|-------------|-------------|-------------|-------------|
<S> <C> <C> <C> <C> <C> <C> <C> <C>
| 1. Prior | 000 | 9,895 | 14,654 | 22,438 | 26,595 | 29,060 | 30,059 |
| 2. 1987 | 10 | 17 | 130 | 426 | 892 | 1,023 | 1,089 |
| 3. 1988 | X X X | 0 | 5 | 26 | 65 | 159 | 372 |
| 4. 1989 | X X X | X X X | 0 | 181 | 209 | 246 | 283 |
| 5. 1990 | X X X | X X X | X X X | 0 | 10 | 162 | 1,050 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 5 | 44 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 3 | 19 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 2 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
| 1 | | 12 | 13 |
| | -----------------------------------------| Number of | Number of |
| Years in Which | | | | Claims | Claims |
| Losses Were | 9 | 10 | 11 | Closed | Closed |
| Incurred | 1994 | 1995 | 1996 | With Loss |Without Loss |
| | | | | Payment | Payment |
|--------------------| -------------|-------------|-------------|-------------|-------------|
<S> <C> <C> <C> <C> <C> <C>
| 1. Prior | 31,727 | 34,122 | 37,210 | 738 | 1,724 |
| 2. 1987 | 1,418 | 1,518 | 1,520 | 13 | 36 |
| 3. 1988 | 379 | 415 | 416 | 4 | 2 |
| 4. 1989 | 298 | 389 | 394 | 2 | 7 |
| 5. 1990 | 1,224 | 1,232 | 1,243 | 6 | 10 |
| 6. 1991 | 120 | 209 | 213 | 2 | 6 |
| 7. 1992 | 608 | 793 | 942 | 4 | 4 |
| 8. 1993 | 46 | 302 | 1,400 | 4 | 10 |
| 9. 1994 | 0 | 14 | 426 | 1 | 3 |
| 10. 1995 | X X X | 8 | 42 | 0 | 7 |
| 11. 1996 | X X X | X X X | 7 | 0 | 1 |
- ---------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS-MADE
<TABLE>
<CAPTION>
|---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
| 1. Prior | 000 | 404 | 461 | 586 | 592 | 1,043 |
| 2. 1987 | 84 | 319 | 950 | 1,355 | 1,623 | 2,580 |
| 3. 1988 | X X X | 110 | 706 | 1,714 | 4,839 | 6,365 |
| 4. 1989 | X X X | X X X | 294 | 2,174 | 7,132 | 12,809 |
| 5. 1990 | X X X | X X X | X X X | 356 | 3,576 | 7,408 |
| 6. 1991 | X X X | X X X | X X X | X X X | 262 | 4,071 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 354 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
----------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
|---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
| 1. Prior | 1,044 | 1,042 | 1,042 | 1,042 | 71 | 88 |
| 2. 1987 | 2,602 | 2,611 | 2,619 | 2,639 | 29 | 50 |
| 3. 1988 | 6,988 | 7,371 | 8,165 | 8,213 | 54 | 98 |
| 4. 1989 | 13,469 | 14,775 | 14,906 | 15,229 | 85 | 183 |
| 5. 1990 | 9,211 | 12,613 | 13,108 | 14,068 | 65 | 174 |
| 6. 1991 | 7,212 | 10,146 | 13,517 | 14,076 | 63 | 160 |
| 7. 1992 | 2,847 | 6,430 | 8,097 | 9,875 | 44 | 178 |
| 8. 1993 | 280 | 1,342 | 3,473 | 7,082 | 36 | 132 |
| 9. 1994 | X X X | 408 | 2,452 | 6,670 | 29 | 126 |
| 10. 1995 | X X X | X X X | 778 | 5,442 | 13 | 70 |
| 11. 1996 | X X X | X X X | X X X | 207 | 1 | 25 |
----------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
SCHEDULE P - PART 3G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT
(ALL PERILS), BOILER AND MACHINERY)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
| 1. Prior | 000 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| 1. Prior | 0 | 0 | 0 | X X X | X X X |
| 2. 1987 | 0 | 0 | 0 | X X X | X X X |
| 3. 1988 | 0 | 0 | 0 | X X X | X X X |
| 4. 1989 | 0 | 0 | 0 | X X X | X X X |
| 5. 1990 | 0 | 0 | 0 | X X X | X X X |
| 6. 1991 | 0 | 0 | 0 | X X X | X X X |
| 7. 1992 | 0 | 0 | 0 | X X X | X X X |
| 8. 1993 | 0 | 0 | 0 | X X X | X X X |
| 9. 1994 | 0 | 0 | 0 | X X X | X X X |
| 10. 1995 | X X X | 0 | 0 | X X X | X X X |
| 11. 1996 | X X X | X X X | 0 | X X X | X X X |
--------------------------------------------------------------------------------------------
</TABLE>
NONE
SCHEDULE P - PART 3H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
| 1. Prior | 000 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| 1. Prior | 0 | 0 | 0 | | |
| 2. 1987 | 0 | 0 | 0 | | |
| 3. 1988 | 0 | 0 | 0 | | |
| 4. 1989 | 0 | 0 | 0 | | |
| 5. 1990 | 0 | 0 | 0 | | |
| 6. 1991 | 0 | 0 | 0 | | |
| 7. 1992 | 0 | 0 | 0 | | |
| 8. 1993 | 0 | 0 | 0 | | |
| 9. 1994 | 0 | 0 | 0 | | |
| 10. 1995 | X X X | 0 | 0 | | |
| 11. 1996 | X X X | X X X | 0 | | |
--------------------------------------------------------------------------------------------
</TABLE>
NONE
SCHEDULE P - PART 3H - SECTION 2 OTHER LIABILITY - CLAIMS-MADE
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
| 1. Prior | 000 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| 1. Prior | 0 | 0 | 0 | | |
| 2. 1987 | 0 | 0 | 0 | | |
| 3. 1988 | 0 | 0 | 0 | | |
| 4. 1989 | 0 | 0 | 0 | | |
| 5. 1990 | 0 | 0 | 0 | | |
| 6. 1991 | 0 | 0 | 0 | | |
| 7. 1992 | 0 | 0 | 0 | | |
| 8. 1993 | 0 | 0 | 0 | | |
| 9. 1994 | 0 | 0 | 0 | | |
| 10. 1995 | X X X | 0 | 0 | | |
| 11. 1996 | X X X | X X X | 0 | | |
--------------------------------------------------------------------------------------------
</TABLE>
NONE
104
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 3I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE,
EARTHQUAKE, GLASS, BURGLARY AND THEFT)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1 | CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED) |
| |-------------------------------------------------------------------------------------------------|
| Years in Which | | | | | | | |
| Losses Were | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
| | | | | | | | |
|----------------------------------------------------------------------------------------------------------------------|
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 3. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------
| 1 | | 12 | 13 |
| |-----------------------------------------| Number of | Number of |
| Years in Which | | | | Claims | Claims |
| Losses Were | 9 | 10 | 11 | Closed | Closed |
| Incurred | 1994 | 1995 | 1996 | With Loss |Without Loss |
| | | | | Payment | Payment |
|--------------------|-------------|-------------|-------------|-------------|-------------|
| 1. Prior | 000 | 0 | 0 | X X X | X X X |
| 2. 1995 | X X X | 0 | 0 | X X X | X X X |
| 3. 1996 | X X X | X X X | 0 | X X X | X X X |
- --------------------------------------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 3J - AUTO PHYSICAL DAMAGE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 3. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ---------------------|-------------|-------------|-------------|-------------|--------------
| 1. Prior | 000 | 0 | 0 | | |
| 2. 1995 | X X X | 0 | 0 | | |
| 3. 1996 | X X X | X X X | 0 | | |
- --------------------------------------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 3K - FIDELITY/SURETY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 3. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ---------------------|-------------|-------------|-------------|-------------|--------------
| 1. Prior | 000 | 0 | 0 | X X X | X X X |
| 2. 1995 | X X X | 0 | 0 | X X X | X X X |
| 3. 1996 | X X X | X X X | 0 | X X X | X X X |
- --------------------------------------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 3L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 3. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ---------------------|-------------|-------------|-------------|-------------|--------------
| 1. Prior | 000 | 0 | 0 | X X X | X X X |
| 2. 1995 | X X X | 0 | 0 | X X X | X X X |
| 3. 1996 | X X X | X X X | 0 | X X X | X X X |
- --------------------------------------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 3M - INTERNATIONAL
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. Prior | 000 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 | X X X | X X X |
| 2. 1987 | 0 | 0 | 0 | X X X | X X X |
| 3. 1988 | 0 | 0 | 0 | X X X | X X X |
| 4. 1989 | 0 | 0 | 0 | X X X | X X X |
| 5. 1990 | 0 | 0 | 0 | X X X | X X X |
| 6. 1991 | 0 | 0 | 0 | X X X | X X X |
| 7. 1992 | 0 | 0 | 0 | X X X | X X X |
| 8. 1993 | 0 | 0 | 0 | X X X | X X X |
| 9. 1994 | 0 | 0 | 0 | X X X | X X X |
| 10. 1995 | X X X | 0 | 0 | X X X | X X X |
| 11. 1996 | X X X | X X X | 0 | X X X | X X X |
- --------------------------------------------------------------------------------------------
[NONE]
</TABLE>
105
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 3N - REINSURANCE A
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1 | CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED) |
| |-------------------------------------------------------------------------------------------------|
| Years in Which | | | | | | | |
| Losses Were | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
| | | | | | | | |
|----------------------------------------------------------------------------------------------------------------------|
| 1. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 3. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 4. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 5. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 6. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 7. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 8. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------
| 1 | | 12 | 13 |
| |-----------------------------------------| Number of | Number of |
| Years in Which | | | | Claims | Claims |
| Losses Were | 9 | 10 | 11 | Closed | Closed |
| Incurred | 1994 | 1995 | 1996 | With Loss |Without Loss |
| | | | | Payment | Payment |
|--------------------|-------------|-------------|-------------|-------------|-------------|
| 1. 1988 | 0 | 0 | 0 | X X X | X X X |
| 2. 1989 | 0 | 0 | 0 | X X X | X X X |
| 3. 1990 | 0 | 0 | 0 | X X X | X X X |
| 4. 1991 | 0 | 0 | 0 | X X X | X X X |
| 5. 1992 | 0 | 0 | 0 | X X X | X X X |
| 6. 1993 | 0 | 0 | 0 | X X X | X X X |
| 7. 1994 | 0 | 0 | 0 | X X X | X X X |
| 8. 1995 | X X X | 0 | 0 | X X X | X X X |
| 9. 1996 | X X X | X X X | 0 | X X X | X X X |
- --------------------------------------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 3O - REINSURANCE B
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 3. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 4. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 5. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 6. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 7. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 8. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ---------------------|-------------|-------------|-------------|-------------|--------------
| 1. 1988 | 0 | 0 | 0 | X X X | X X X |
| 2. 1989 | 0 | 0 | 0 | X X X | X X X |
| 3. 1990 | 0 | 0 | 0 | X X X | X X X |
| 4. 1991 | 0 | 0 | 0 | X X X | X X X |
| 5. 1992 | 0 | 0 | 0 | X X X | X X X |
| 6. 1993 | 0 | 0 | 0 | X X X | X X X |
| 7. 1994 | 0 | 0 | 0 | X X X | X X X |
| 8. 1995 | X X X | 0 | 0 | X X X | X X X |
| 9. 1996 | X X X | X X X | 0 | X X X | X X X |
- --------------------------------------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 3P - REINSURANCE C
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 3. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 4. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 5. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 6. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 7. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 8. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ---------------------|-------------|-------------|-------------|-------------|--------------
| 1. 1988 | 0 | 0 | 0 | X X X | X X X |
| 2. 1989 | 0 | 0 | 0 | X X X | X X X |
| 3. 1990 | 0 | 0 | 0 | X X X | X X X |
| 4. 1991 | 0 | 0 | 0 | X X X | X X X |
| 5. 1992 | 0 | 0 | 0 | X X X | X X X |
| 6. 1993 | 0 | 0 | 0 | X X X | X X X |
| 7. 1994 | 0 | 0 | 0 | X X X | X X X |
| 8. 1995 | X X X | 0 | 0 | X X X | X X X |
| 9. 1996 | X X X | X X X | 0 | X X X | X X X |
- --------------------------------------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 3Q - REINSURANCE D
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. Prior | 000 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ---------------------|-------------|-------------|-------------|-------------|--------------
| 1. Prior | 0 | 0 | 0 | X X X | X X X |
| 2. 1987 | 0 | 0 | 0 | X X X | X X X |
- --------------------------------------------------------------------------------------------
[NONE]
</TABLE>
106
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 3R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1 | CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED) |
| |-------------------------------------------------------------------------------------------------|
| Years in Which | | | | | | | |
| Losses Were | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
| | | | | | | | |
|----------------------------------------------------------------------------------------------------------------------|
| 1. Prior | 000 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------
| 1 | | 12 | 13 |
| |-----------------------------------------| Number of | Number of |
| Years in Which | | | | Claims | Claims |
| Losses Were | 9 | 10 | 11 | Closed | Closed |
| Incurred | 1994 | 1995 | 1996 | With Loss |Without Loss |
| | | | | Payment | Payment |
|--------------------|-------------|-------------|-------------|-------------|-------------|
| 1. Prior | 0 | 0 | 0 | | |
| 2. 1987 | 0 | 0 | 0 | | |
| 3. 1988 | 0 | 0 | 0 | | |
| 4. 1989 | 0 | 0 | 0 | | |
| 5. 1990 | 0 | 0 | 0 | | |
| 6. 1991 | 0 | 0 | 0 | | |
| 7. 1992 | 0 | 0 | 0 | | |
| 8. 1993 | 0 | 0 | 0 | | |
| 9. 1994 | 0 | 0 | 0 | | |
| 10. 1995 | X X X | 0 | 0 | | |
| 11. 1996 | X X X | X X X | 0 | | |
- --------------------------------------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 3R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS-MADE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. Prior | 000 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 | | |
| 2. 1987 | 0 | 0 | 0 | | |
| 3. 1988 | 0 | 0 | 0 | | |
| 4. 1989 | 0 | 0 | 0 | | |
| 5. 1990 | 0 | 0 | 0 | | |
| 6. 1991 | 0 | 0 | 0 | | |
| 7. 1992 | 0 | 0 | 0 | | |
| 8. 1993 | 0 | 0 | 0 | | |
| 9. 1994 | 0 | 0 | 0 | | |
| 10. 1995 | X X X | 0 | 0 | | |
| 11. 1996 | X X X | X X X | 0 | | |
- --------------------------------------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 3S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 3. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ---------------------|-------------|-------------|-------------|-------------|--------------
| 1. Prior | 000 | 0 | 0 | X X X | X X X |
| 2. 1995 | X X X | 0 | 0 | X X X | X X X |
| 3. 1996 | X X X | X X X | 0 | X X X | X X X |
- --------------------------------------------------------------------------------------------
[NONE]
</TABLE>
107
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 4A - HOMEOWNERS/FARMOWNERS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1 | BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED EXPENSES AT YEAR END |
| | ($000 OMITTED) |
| |-------------------------------------------------------------------------------------------------|
| Years in Which | | | | | | | |
| Losses Were | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
| | | | | | | | |
|----------------------------------------------------------------------------------------------------------------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- ----------------------------------------------------------------
| 1 | |
| |-----------------------------------------|
| Years in Which | | | |
| Losses Were | 9 | 10 | 11 |
| Incurred | 1994 | 1995 | 1996 |
| | | | |
|--------------------|-------------|-------------|-------------|
| 1. Prior | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 |
- ----------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 4B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- ----------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 |
- ----------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 4C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- ----------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 |
- ----------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 4D - WORKERS' COMPENSATION
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- ----------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 |
- ----------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 4E - COMMERCIAL MULTIPLE PERIL
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- ----------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 |
- ----------------------------------------------------------------
[NONE]
</TABLE>
108
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 4F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1 | BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED EXPENSES AT YEAR END |
| | ($000 OMITTED) |
| |-------------------------------------------------------------------------------------------------|
| Years in Which | | | | | | | |
| Losses Were | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
| | | | | | | | |
|----------------------------------------------------------------------------------------------------------------------|
| 1. Prior | 14,944 | 14,484 | 3,527 | 1,830 | 877 | 523 | 343 |
| 2. 1987 | 2,685 | 646 | 505 | 655 | 388 | 296 | 166 |
| 3. 1988 | X X X | 400 | 330 | 499 | 240 | 263 | 43 |
| 4. 1989 | X X X | X X X | 145 | 482 | 304 | 261 | 151 |
| 5. 1990 | X X X | X X X | X X X | 75 | 284 | 268 | 65 |
| 6. 1991 | X X X | X X X | X X X | X X X | 56 | 256 | 127 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 37 | 207 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 699 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- ----------------------------------------------------------------
| 1 | |
| |-----------------------------------------|
| Years in Which | | | |
| Losses Were | 9 | 10 | 11 |
| Incurred | 1994 | 1995 | 1996 |
| | | | |
|--------------------|-------------|-------------|-------------|
| 1. Prior | 318 | 106 | 47 |
| 2. 1987 | 127 | 75 | 20 |
| 3. 1988 | 36 | 19 | 11 |
| 4. 1989 | 147 | 67 | 44 |
| 5. 1990 | 45 | 12 | 4 |
| 6. 1991 | 140 | 50 | 41 |
| 7. 1992 | 99 | 28 | 19 |
| 8. 1993 | 513 | 209 | 111 |
| 9. 1994 | 292 | 196 | 89 |
| 10. 1995 | X X X | 588 | 339 |
| 11. 1996 | X X X | X X X | 360 |
- ----------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS-MADE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- ----------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 |
- ----------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 4G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT
(ALL PERILS), BOILER AND MACHINERY)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- ----------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 |
- ----------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 4H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- ----------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 |
- ----------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 4H - SECTION 2 - OTHER LIABILITY - CLAIMS-MADE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- ----------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 |
- ----------------------------------------------------------------
[NONE]
</TABLE>
109
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 4I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE,
EARTHQUAKE, GLASS, BURGLARY AND THEFT)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1 | BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED EXPENSES AT YEAR END |
| | ($000 OMITTED) |
| |-------------------------------------------------------------------------------------------------|
| Years in Which | | | | | | | |
| Losses Were | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
| | | | | | | | |
|----------------------------------------------------------------------------------------------------------------------|
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 3. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- ----------------------------------------------------------------
| 1 | |
| |-----------------------------------------|
| Years in Which | | | |
| Losses Were | 9 | 10 | 11 |
| Incurred | 1994 | 1995 | 1996 |
| | | | |
|--------------------|-------------|-------------|-------------|
| 1. Prior | 0 | 0 | 0 |
| 2. 1995 | X X X | 0 | 0 |
| 3. 1996 | X X X | X X X | 0 |
- ----------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 4J - AUTO PHYSICAL DAMAGE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 3. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- ----------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 |
| 2. 1995 | X X X | 0 | 0 |
| 3. 1996 | X X X | X X X | 0 |
- ----------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 4K - FIDELITY/SURETY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 3. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- ----------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 |
| 2. 1995 | X X X | 0 | 0 |
| 3. 1996 | X X X | X X X | 0 |
- ----------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 4L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 3. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- ----------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 |
| 2. 1995 | X X X | 0 | 0 |
| 3. 1996 | X X X | X X X | 0 |
- ----------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 4M - INTERNATIONAL
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- ----------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 |
- ----------------------------------------------------------------
[NONE]
</TABLE>
110
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 4N - REINSURANCE A
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1 | BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED EXPENSES AT YEAR END |
| | ($000 OMITTED) |
| |-------------------------------------------------------------------------------------------------|
| Years in Which | | | | | | | |
| Losses Were | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
| | | | | | | | |
|----------------------------------------------------------------------------------------------------------------------|
| 1. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 3. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 4. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 5. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 6. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 7. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 8. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- ----------------------------------------------------------------
| 1 | |
| |-----------------------------------------|
| Years in Which | | | |
| Losses Were | 9 | 10 | 11 |
| Incurred | 1994 | 1995 | 1996 |
| | | | |
|--------------------|-------------|-------------|-------------|
| 1. 1988 | 0 | 0 | 0 |
| 2. 1989 | 0 | 0 | 0 |
| 3. 1990 | 0 | 0 | 0 |
| 4. 1991 | 0 | 0 | 0 |
| 5. 1992 | 0 | 0 | 0 |
| 6. 1993 | 0 | 0 | 0 |
| 7. 1994 | 0 | 0 | 0 |
| 8. 1995 | X X X | 0 | 0 |
| 9. 1996 | X X X | X X X | 0 |
- ----------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 4O - REINSURANCE B
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 3. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 4. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 5. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 6. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 7. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 8. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- ----------------------------------------------------------------
| 1. 1988 | 0 | 0 | 0 |
| 2. 1989 | 0 | 0 | 0 |
| 3. 1990 | 0 | 0 | 0 |
| 4. 1991 | 0 | 0 | 0 |
| 5. 1992 | 0 | 0 | 0 |
| 6. 1993 | 0 | 0 | 0 |
| 7. 1994 | 0 | 0 | 0 |
| 8. 1995 | X X X | 0 | 0 |
| 9. 1996 | X X X | X X X | 0 |
- ----------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 4P - REINSURANCE C
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 3. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 4. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 5. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 6. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 7. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 8. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- ----------------------------------------------------------------
| 1. 1988 | 0 | 0 | 0 |
| 2. 1989 | 0 | 0 | 0 |
| 3. 1990 | 0 | 0 | 0 |
| 4. 1991 | 0 | 0 | 0 |
| 5. 1992 | 0 | 0 | 0 |
| 6. 1993 | 0 | 0 | 0 |
| 7. 1994 | 0 | 0 | 0 |
| 8. 1995 | X X X | 0 | 0 |
| 9. 1996 | X X X | X X X | 0 |
- ----------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 4Q - REINSURANCE D
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- ----------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 |
- ----------------------------------------------------------------
[NONE]
</TABLE>
111
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 4R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1 | BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED EXPENSES AT YEAR END |
| | ($000 OMITTED) |
| |-------------------------------------------------------------------------------------------------|
| Years in Which | | | | | | | |
| Losses Were | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
| | | | | | | | |
|----------------------------------------------------------------------------------------------------------------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- ----------------------------------------------------------------
| 1 | |
| |-----------------------------------------|
| Years in Which | | | |
| Losses Were | 9 | 10 | 11 |
| Incurred | 1994 | 1995 | 1996 |
| | | | |
|--------------------|-------------|-------------|-------------|
| 1. Prior | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 |
- ----------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 4R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS-MADE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- ----------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 |
- ----------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 4S - FINANCIAL GUARANTY-MORTGAGE GUARANTY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 2. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 3. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- ----------------------------------------------------------------
| 1. Prior | 0 | 0 | 0 |
| 2. 1995 | X X X | 0 | 0 |
| 3. 1996 | X X X | X X X | 0 |
- ----------------------------------------------------------------
[NONE]
</TABLE>
112
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 5A - HOMEOWNERS/FARMOWNERS
<TABLE>
<CAPTION>
SECTION 1
--------------------------------------------------------------------------------------------------------------------------|
| | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
<S> | <C> | <C> | <C> | <C> | <C> | <C> |
|1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
|2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
|3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
|4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
|5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
|6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
|7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
|8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
|9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
|10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
|11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SECTION 1
-------------------------------------------------------------------------------------------
| |CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND |
| 1 |ASSUMED AT YEAR END |
| Years |--------------------------------------------------------------------|
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|-----------------|----------------|----------------|----------------|
<S> <C> <C> <C> <C> |
|1. Prior | 0 | 0 | 0 | 0 |
|2. 1987 | 0 | 0 | 0 | 0 |
|3. 1988 | 0 | 0 | 0 | 0 |
|4. 1989 | 0 | 0 | 0 | 0 |
|5. 1990 | 0 | 0 | 0 | 0 |
|6. 1991 | 0 | 0 | 0 | 0 |
|7. 1992 | 0 | 0 | 0 | 0 |
|8. 1993 | 0 | 0 | 0 | 0 |
|9. 1994 | X X X | 0 | 0 | 0 |
|10. 1995 | X X X | X X X | 0 | 0 |
|11. 1996 | X X X | X X X | X X X | 0 |
-------------------------------------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
SECTION 2
- --------------------------------------------------------------------------------------------------------------------------
| | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END |
| | |
| 1 |-----------------------------------------------------------------------------------------------------
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
<S> <C> <C> <C> <C> <C> <C> |
|1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
|2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
|3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
|4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
|5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
|6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
|7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
|8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
|9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
|10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
|11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SECTION 2
| --------------------------------------------------------------------------------------|
| NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END |
- ----------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> |
| | | | | |
| 1 | | | | |
| Years | 8 | 9 | 10 | 11 |
| in Which | | | | |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|---------------------------------------------------------------------------------------|
|<S> <C> <C> <C> <C> |
|1. Prior | 0 | 0 | 0 | 0 |
|2. 1987 | 0 | 0 | 0 | 0 |
|3. 1988 | 0 | 0 | 0 | 0 |
|4. 1989 | 0 | 0 | 0 | 0 |
|5. 1990 | 0 | 0 | 0 | 0 |
|6. 1991 | 0 | 0 | 0 | 0 |
|7. 1992 | 0 | 0 | 0 | 0 |
|8. 1993 | 0 | 0 | 0 | 0 |
|9. 1994 | X X X | 0 | 0 | 0 |
|10. 1995 | X X X | X X X | 0 | 0 |
|11. 1996 | X X X | X X X | X X X | 0 |
- ----------------------------------------------------------------------------------------|
[NONE]
</TABLE>
<TABLE>
<CAPTION>
SECTION 3
-------------------------------------------------------------------------------------------------------------------------|
| | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END |
| 1 |---------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|---------------|
<S> <C> <C> <C> <C> <C> <C> |
|1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
|2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
|3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
|4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
|5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
|6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
|7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
|8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
|9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
|10.1995 | X X X | X X X | X X X | X X X | X X X | X X X |
|11.1996 | X X X | X X X | X X X | X X X | X X X | X X X |
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
SECTION 3
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
| |CUMULATIVE NUMER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END |
| 1 |---------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|------------------|----------------|----------------|----------------|
<S> <C> <C> <C> <C> |
|1. Prior | 0 | 0 | 0 | 0 |
|2. 1987 | 0 | 0 | 0 | 0 |
|3. 1988 | 0 | 0 | 0 | 0 |
|4. 1989 | 0 | 0 | 0 | 0 |
|5. 1990 | 0 | 0 | 0 | 0 |
|6. 1991 | 0 | 0 | 0 | 0 |
|7. 1992 | 0 | 0 | 0 | 0 |
|8. 1993 | 0 | 0 | 0 | 0 |
|9. 1994 | X X X | 0 | 0 | 0 |
|10. 1995 | X X X | X X X | 0 | 0 |
|11. 1996 | X X X | X X X | X X X | 0 |
--------------------------------------------------------------------------------------------
[NONE]
</TABLE>
113
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 5B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
SECTION 1
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | X X X | 0 | 0 | 0 |
| 10. 1995 | X X X | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | X X X | 0 |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | X X X | 0 | 0 | 0 |
| 10. 1995 | X X X | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | X X X | 0 |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 3
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | X X X | 0 | 0 | 0 |
| 10. 1995 | X X X | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | X X X | 0 |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
114
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 5C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
SECTION 1
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | X X X | 0 | 0 | 0 |
| 10. 1995 | X X X | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | X X X | 0 |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | X X X | 0 | 0 | 0 |
| 10. 1995 | X X X | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | X X X | 0 |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 3
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | X X X | 0 | 0 | 0 |
| 10. 1995 | X X X | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | X X X | 0 |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
115
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 5D - WORKERS' COMPENSATION
SECTION 1
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | X X X | 0 | 0 | 0 |
| 10. 1995 | X X X | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | X X X | 0 |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | X X X | 0 | 0 | 0 |
| 10. 1995 | X X X | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | X X X | 0 |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 3
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | X X X | 0 | 0 | 0 |
| 10. 1995 | X X X | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | X X X | 0 |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
116
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 5E - COMMERCIAL MULTIPLE PERIL
SECTION 1
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | X X X | 0 | 0 | 0 |
| 10. 1995 | X X X | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | X X X | 0 |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | X X X | 0 | 0 | 0 |
| 10. 1995 | X X X | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | X X X | 0 |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 3
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | X X X | 0 | 0 | 0 |
| 10. 1995 | X X X | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | X X X | 0 |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
117
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - OCCURRENCE
SECTION 1A
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 97 | 89 | 38 | 58 | 25 | 15 |
| 2. 1987 | 1 | 1 | 1 | 4 | 8 | 9 |
| 3. 1988 | X X X | 0 | 0 | 0 | 1 | 3 |
| 4. 1989 | X X X | X X X | 0 | 1 | 1 | 1 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 3 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 9 | 8 | 6 | 8 |
| 2. 1987 | 10 | 12 | 13 | 13 |
| 3. 1988 | 4 | 4 | 4 | 4 |
| 4. 1989 | 1 | 1 | 2 | 2 |
| 5. 1990 | 4 | 6 | 6 | 6 |
| 6. 1991 | 0 | 1 | 2 | 2 |
| 7. 1992 | 0 | 1 | 3 | 4 |
| 8. 1993 | 0 | 0 | 1 | 4 |
| 9. 1994 | X X X | 0 | 0 | 1 |
| 10. 1995 | X X X | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | X X X | 0 |
- -----------------------------------------------------------------------------------------
</TABLE>
SECTION 2A
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 630 | 517 | 398 | 234 | 145 | 98 |
| 2. 1987 | 5 | 20 | 31 | 23 | 13 | 8 |
| 3. 1988 | X X X | 1 | 3 | 5 | 5 | 3 |
| 4. 1989 | X X X | X X X | 1 | 3 | 5 | 5 |
| 5. 1990 | X X X | X X X | X X X | 2 | 7 | 8 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 3 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 3 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 60 | 31 | 24 | 8 |
| 2. 1987 | 7 | 3 | 1 | 0 |
| 3. 1988 | 1 | 1 | 0 | 0 |
| 4. 1989 | 3 | 2 | 2 | 0 |
| 5. 1990 | 7 | 3 | 4 | 0 |
| 6. 1991 | 5 | 3 | 2 | 0 |
| 7. 1992 | 6 | 3 | 0 | 0 |
| 8. 1993 | 2 | 16 | 11 | 5 |
| 9. 1994 | X X X | 2 | 5 | 1 |
| 10. 1995 | X X X | X X X | 11 | 13 |
| 11. 1996 | X X X | X X X | X X X | 7 |
- -----------------------------------------------------------------------------------------
</TABLE>
SECTION 3A
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 6 | 22 | 44 | 44 | 48 | 49 |
| 3. 1988 | X X X | 1 | 3 | 5 | 6 | 6 |
| 4. 1989 | X X X | X X X | 1 | 4 | 8 | 9 |
| 5. 1990 | X X X | X X X | X X X | 2 | 8 | 16 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 4 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 3 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 4 | 0 |
| 2. 1987 | 49 | 49 | 49 | 49 |
| 3. 1988 | 6 | 6 | 6 | 6 |
| 4. 1989 | 9 | 9 | 9 | 9 |
| 5. 1990 | 16 | 16 | 16 | 16 |
| 6. 1991 | 8 | 8 | 8 | 8 |
| 7. 1992 | 8 | 8 | 7 | 8 |
| 8. 1993 | 2 | 16 | 18 | 19 |
| 9. 1994 | X X X | 2 | 5 | 5 |
| 10. 1995 | X X X | X X X | 11 | 20 |
| 11. 1996 | X X X | X X X | X X X | 8 |
- -----------------------------------------------------------------------------------------
</TABLE>
118
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - CLAIMS-MADE
SECTION 1B
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 22 | 16 | 1 | 2 | 0 | 2 |
| 2. 1987 | 4 | 11 | 14 | 21 | 23 | 29 |
| 3. 1988 | X X X | 4 | 14 | 26 | 40 | 46 |
| 4. 1989 | X X X | X X X | 4 | 22 | 50 | 69 |
| 5. 1990 | X X X | X X X | X X X | 5 | 23 | 41 |
| 6. 1991 | X X X | X X X | X X X | X X X | 1 | 14 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 2 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 29 | 29 | 29 | 29 |
| 3. 1988 | 49 | 53 | 53 | 54 |
| 4. 1989 | 76 | 83 | 83 | 85 |
| 5. 1990 | 48 | 57 | 60 | 65 |
| 6. 1991 | 33 | 43 | 60 | 63 |
| 7. 1992 | 16 | 26 | 36 | 44 |
| 8. 1993 | 1 | 10 | 21 | 36 |
| 9. 1994 | X X X | 2 | 12 | 29 |
| 10. 1995 | X X X | X X X | 1 | 13 |
| 11. 1996 | X X X | X X X | X X X | 1 |
- -----------------------------------------------------------------------------------------
</TABLE>
SECTION 2B
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 52 | 14 | 5 | 2 | 2 | 0 |
| 2. 1987 | 51 | 43 | 32 | 17 | 13 | 7 |
| 3. 1988 | X X X | 120 | 110 | 72 | 42 | 23 |
| 4. 1989 | X X X | X X X | 231 | 162 | 92 | 43 |
| 5. 1990 | X X X | X X X | X X X | 202 | 147 | 80 |
| 6. 1991 | X X X | X X X | X X X | X X X | 188 | 124 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 167 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 4 | 2 | 2 | 2 |
| 3. 1988 | 13 | 3 | 3 | 2 |
| 4. 1989 | 26 | 13 | 9 | 1 |
| 5. 1990 | 52 | 24 | 14 | 6 |
| 6. 1991 | 81 | 57 | 28 | 16 |
| 7. 1992 | 125 | 90 | 39 | 22 |
| 8. 1993 | 151 | 106 | 65 | 39 |
| 9. 1994 | X X X | 157 | 108 | 74 |
| 10. 1995 | X X X | X X X | 170 | 124 |
| 11. 1996 | X X X | X X X | X X X | 142 |
- -----------------------------------------------------------------------------------------
</TABLE>
SECTION 3
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 60 | 73 | 79 | 80 | 80 | 82 |
| 3. 1988 | X X X | 134 | 147 | 153 | 153 | 153 |
| 4. 1989 | X X X | X X X | 252 | 263 | 270 | 270 |
| 5. 1990 | X X X | X X X | X X X | 224 | 242 | 245 |
| 6. 1991 | X X X | X X X | X X X | X X X | 221 | 229 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 212 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 82 | 82 | 81 | 81 |
| 3. 1988 | 153 | 153 | 154 | 154 |
| 4. 1989 | 270 | 270 | 269 | 269 |
| 5. 1990 | 245 | 245 | 245 | 245 |
| 6. 1991 | 238 | 239 | 239 | 239 |
| 7. 1992 | 233 | 241 | 245 | 244 |
| 8. 1993 | 182 | 200 | 205 | 207 |
| 9. 1994 | X X X | 199 | 218 | 229 |
| 10. 1995 | X X X | X X X | 194 | 207 |
| 11. 1996 | X X X | X X X | X X X | 168 |
- -----------------------------------------------------------------------------------------
</TABLE>
119
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 5H - OTHER LIABILITY - OCCURRENCE
SECTION 1A
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | X X X | 0 | 0 | 0 |
| 10. 1995 | X X X | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | X X X | 0 |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 2A
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | X X X | 0 | 0 | 0 |
| 10. 1995 | X X X | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | X X X | 0 |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 3A
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | X X X | 0 | 0 | 0 |
| 10. 1995 | X X X | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | X X X | 0 |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
120
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 5H - OTHER LIABILITY - CLAIMS-MADE
SECTION 1B
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | X X X | 0 | 0 | 0 |
| 10. 1995 | X X X | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | X X X | 0 |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 2B
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | X X X | 0 | 0 | 0 |
| 10. 1995 | X X X | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | X X X | 0 |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 3B
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | X X X | 0 | 0 | 0 |
| 10. 1995 | X X X | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | X X X | 0 |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
121
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - OCCURRENCE
SECTION 1A
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | X X X | 0 | 0 | 0 |
| 10. 1995 | X X X | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | X X X | 0 |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 2A
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | X X X | 0 | 0 | 0 |
| 10. 1995 | X X X | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | X X X | 0 |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 3A
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | X X X | 0 | 0 | 0 |
| 10. 1995 | X X X | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | X X X | 0 |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
122
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - CLAIMS-MADE
SECTION 1B
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | X X X | 0 | 0 | 0 |
| 10. 1995 | X X X | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | X X X | 0 |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 2B
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | X X X | 0 | 0 | 0 |
| 10. 1995 | X X X | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | X X X | 0 |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 3B
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END |
| 1 |----------------------------------------------------------------------------------------------------|
| Years | | | | | | |
| in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Premiums Were | | | | | | |
| Earned and | | | | | | |
| Losses Were | | | | | | |
| Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|--------------------|---------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| | |
| 1 |------------------------------------------------------------------|
| Years | | | | |
| in Which | 8 | 9 | 10 | 11 |
| Premiums Were | | | | |
| Earned and | | | | |
| Losses Were | | | | |
| Incurred | 1993 | 1994 | 1995 | 1996 |
|--------------------|---------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | X X X | 0 | 0 | 0 |
| 10. 1995 | X X X | X X X | 0 | 0 |
| 11. 1996 | X X X | X X X | X X X | 0 |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
123
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 6C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
SECTION 1
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| 1 | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITTED) |
| Years in |--------------------------------------------------------------------------------------------------------|
| Which Premiums | | | | | | | |
| Were Earned | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| and Losses | | | | | | | |
| Were Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
|------------------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
|---------------------------------------------------------------------------------------------------------------------------------|
| 12. Total |
|---------------------------------------------------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
| 1 | | |
| Years in |--------------------------------------------| 12 |
| Which Premiums | | | | |
| Were Earned | 9 | 10 | 11 | Current Year |
| and Losses | | | | Premiums |
| Were Incurred | 1994 | 1995 | 1996 | Earned |
|------------------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 | 0 |
|------------------------------------------------------------------------------------|
| 12. Total | 0 |
|------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | X X X |
- --------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED) |
| 1 |--------------------------------------------------------------------------------------------------------|
| | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
|------------------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
|---------------------------------------------------------------------------------------------------------------------------------|
| 12. Total |
|---------------------------------------------------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
| | | 12 |
| 1 |--------------------------------------------| Current Year |
| | 9 | 10 | 11 | Premiums |
| | 1994 | 1995 | 1996 | Earned |
|------------------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 | 0 |
|------------------------------------------------------------------------------------|
| 12. Total | 0 |
|------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | X X X |
- --------------------------------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 6D - WORKERS' COMPENSATION
SECTION 1
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| 1 | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITTED) |
| Years in |--------------------------------------------------------------------------------------------------------|
| Which Premiums | | | | | | | |
| Were Earned | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| and Losses | | | | | | | |
| Were Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
|------------------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
|---------------------------------------------------------------------------------------------------------------------------------|
| 12. Total |
|---------------------------------------------------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
| 1 | | |
| Years in |--------------------------------------------| 12 |
| Which Premiums | | | | |
| Were Earned | 9 | 10 | 11 | Current Year |
| and Losses | | | | Premiums |
| Were Incurred | 1994 | 1995 | 1996 | Earned |
|------------------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 | 0 |
|------------------------------------------------------------------------------------|
| 12. Total | 0 |
|------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | X X X |
- --------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED) |
| 1 |--------------------------------------------------------------------------------------------------------|
| | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
|------------------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
|---------------------------------------------------------------------------------------------------------------------------------|
| 12. Total |
|---------------------------------------------------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
| | | 12 |
| 1 |--------------------------------------------| Current Year |
| | 9 | 10 | 11 | Premiums |
| | 1994 | 1995 | 1996 | Earned |
|------------------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 | 0 |
|------------------------------------------------------------------------------------|
| 12. Total | 0 |
|------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | X X X |
- --------------------------------------------------------------------------------------
[NONE]
</TABLE>
124
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 6E - COMMERCIAL MULTIPLE PERIL
SECTION 1
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| 1 | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITTED) |
| Years in |--------------------------------------------------------------------------------------------------------|
| Which Premiums | | | | | | | |
| Were Earned | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| and Losses | | | | | | | |
| Were Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
|------------------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
|---------------------------------------------------------------------------------------------------------------------------------|
| 12. Total |
|---------------------------------------------------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
| 1 | | |
| Years in |--------------------------------------------| 12 |
| Which Premiums | | | | |
| Were Earned | 9 | 10 | 11 | Current Year |
| and Losses | | | | Premiums |
| Were Incurred | 1994 | 1995 | 1996 | Earned |
|------------------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 | 0 |
|------------------------------------------------------------------------------------|
| 12. Total | 0 |
|------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | X X X |
- --------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED) |
| 1 |--------------------------------------------------------------------------------------------------------|
| | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
|------------------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
|---------------------------------------------------------------------------------------------------------------------------------|
| 12. Total |
|---------------------------------------------------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
| | | 12 |
| 1 |--------------------------------------------| Current Year |
| | 9 | 10 | 11 | Premiums |
| | 1994 | 1995 | 1996 | Earned |
|------------------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 | 0 |
|------------------------------------------------------------------------------------|
| 12. Total | 0 |
|------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | X X X |
- --------------------------------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 6H - OTHER LIABILITY - OCCURRENCE
SECTION 1A
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| 1 | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITTED) |
| Years in |--------------------------------------------------------------------------------------------------------|
| Which Premiums | | | | | | | |
| Were Earned | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| and Losses | | | | | | | |
| Were Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
|------------------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
|---------------------------------------------------------------------------------------------------------------------------------|
| 12. Total |
|---------------------------------------------------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
| 1 | | |
| Years in |--------------------------------------------| 12 |
| Which Premiums | | | | |
| Were Earned | 9 | 10 | 11 | Current Year |
| and Losses | | | | Premiums |
| Were Incurred | 1994 | 1995 | 1996 | Earned |
|------------------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 | 0 |
|------------------------------------------------------------------------------------|
| 12. Total | 0 |
|------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | X X X |
- --------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 2A
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED) |
| 1 |--------------------------------------------------------------------------------------------------------|
| | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
|------------------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
|---------------------------------------------------------------------------------------------------------------------------------|
| 12. Total |
|---------------------------------------------------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
| | | 12 |
| 1 |--------------------------------------------| Current Year |
| | 9 | 10 | 11 | Premiums |
| | 1994 | 1995 | 1996 | Earned |
|------------------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 | 0 |
|------------------------------------------------------------------------------------|
| 12. Total | 0 |
|------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | X X X |
- --------------------------------------------------------------------------------------
[NONE]
</TABLE>
125
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 6H - OTHER LIABILITY - CLAIMS-MADE
SECTION 1B
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| 1 | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITTED) |
| Years in |--------------------------------------------------------------------------------------------------------|
| Which Premiums | | | | | | | |
| Were Earned | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| and Losses | | | | | | | |
| Were Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
|------------------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
|---------------------------------------------------------------------------------------------------------------------------------|
| 12. Total |
|---------------------------------------------------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
| 1 | | |
| Years in |--------------------------------------------| 12 |
| Which Premiums | | | | |
| Were Earned | 9 | 10 | 11 | Current Year |
| and Losses | | | | Premiums |
| Were Incurred | 1994 | 1995 | 1996 | Earned |
|------------------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 | 0 |
|------------------------------------------------------------------------------------|
| 12. Total | 0 |
|------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | X X X |
- --------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 2B
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED) |
| 1 |--------------------------------------------------------------------------------------------------------|
| | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
|------------------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
|---------------------------------------------------------------------------------------------------------------------------------|
| 12. Total |
|---------------------------------------------------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
| | | 12 |
| 1 |--------------------------------------------| Current Year |
| | 9 | 10 | 11 | Premiums |
| | 1994 | 1995 | 1996 | Earned |
|------------------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 | 0 |
|------------------------------------------------------------------------------------|
| 12. Total | 0 |
|------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | X X X |
- --------------------------------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 6M - INTERNATIONAL
SECTION 1
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| 1 | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITTED) |
| Years in |--------------------------------------------------------------------------------------------------------|
| Which Premiums | | | | | | | |
| Were Earned | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| and Losses | | | | | | | |
| Were Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
|------------------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
|---------------------------------------------------------------------------------------------------------------------------------|
| 12. Total |
|---------------------------------------------------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
| 1 | | |
| Years in |--------------------------------------------| 12 |
| Which Premiums | | | | |
| Were Earned | 9 | 10 | 11 | Current Year |
| and Losses | | | | Premiums |
| Were Incurred | 1994 | 1995 | 1996 | Earned |
|------------------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 | 0 |
|------------------------------------------------------------------------------------|
| 12. Total | 0 |
|------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | X X X |
- --------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED) |
| 1 |--------------------------------------------------------------------------------------------------------|
| | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
|------------------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
|---------------------------------------------------------------------------------------------------------------------------------|
| 12. Total |
|---------------------------------------------------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
| | | 12 |
| 1 |--------------------------------------------| Current Year |
| | 9 | 10 | 11 | Premiums |
| | 1994 | 1995 | 1996 | Earned |
|------------------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 | 0 |
|------------------------------------------------------------------------------------|
| 12. Total | 0 |
|------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | X X X |
- --------------------------------------------------------------------------------------
[NONE]
</TABLE>
126
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 6N - REINSURANCE A
SECTION 1
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| 1 | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITTED) |
| Years in |--------------------------------------------------------------------------------------------------------|
| Which Premiums | | | | | | | |
| Were Earned | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| and Losses | | | | | | | |
| Were Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
|------------------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
|---------------------------------------------------------------------------------------------------------------------------------|
| 12. Total |
|---------------------------------------------------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
| 1 | | |
| Years in |--------------------------------------------| 12 |
| Which Premiums | | | | |
| Were Earned | 9 | 10 | 11 | Current Year |
| and Losses | | | | Premiums |
| Were Incurred | 1994 | 1995 | 1996 | Earned |
|------------------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 | 0 |
|------------------------------------------------------------------------------------|
| 12. Total | 0 |
|------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | X X X |
- --------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED) |
| 1 |--------------------------------------------------------------------------------------------------------|
| | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
|------------------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
|---------------------------------------------------------------------------------------------------------------------------------|
| 12. Total |
|---------------------------------------------------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
| | | 12 |
| 1 |--------------------------------------------| Current Year |
| | 9 | 10 | 11 | Premiums |
| | 1994 | 1995 | 1996 | Earned |
|------------------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 | 0 |
|------------------------------------------------------------------------------------|
| 12. Total | 0 |
|------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | X X X |
- --------------------------------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 6O - REINSURANCE B
SECTION 1
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| 1 | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITTED) |
| Years in |--------------------------------------------------------------------------------------------------------|
| Which Premiums | | | | | | | |
| Were Earned | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| and Losses | | | | | | | |
| Were Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
|------------------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
|---------------------------------------------------------------------------------------------------------------------------------|
| 12. Total |
|---------------------------------------------------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
| 1 | | |
| Years in |--------------------------------------------| 12 |
| Which Premiums | | | | |
| Were Earned | 9 | 10 | 11 | Current Year |
| and Losses | | | | Premiums |
| Were Incurred | 1994 | 1995 | 1996 | Earned |
|------------------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 | 0 |
|------------------------------------------------------------------------------------|
| 12. Total | 0 |
|------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | X X X |
- --------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED) |
| 1 |--------------------------------------------------------------------------------------------------------|
| | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
|------------------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
|---------------------------------------------------------------------------------------------------------------------------------|
| 12. Total |
|---------------------------------------------------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
| | | 12 |
| 1 |--------------------------------------------| Current Year |
| | 9 | 10 | 11 | Premiums |
| | 1994 | 1995 | 1996 | Earned |
|------------------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 | 0 |
|------------------------------------------------------------------------------------|
| 12. Total | 0 |
|------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | X X X |
- --------------------------------------------------------------------------------------
[NONE]
</TABLE>
127
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 6R - PRODUCTS LIABILITY - OCCURRENCE
SECTION 1A
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| 1 | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITTED) |
| Years in |--------------------------------------------------------------------------------------------------------|
| Which Premiums | | | | | | | |
| Were Earned | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| and Losses | | | | | | | |
| Were Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
|------------------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
|---------------------------------------------------------------------------------------------------------------------------------|
| 12. Total |
|---------------------------------------------------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
| 1 | | |
| Years in |--------------------------------------------| 12 |
| Which Premiums | | | | |
| Were Earned | 9 | 10 | 11 | Current Year |
| and Losses | | | | Premiums |
| Were Incurred | 1994 | 1995 | 1996 | Earned |
|------------------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 | 0 |
|------------------------------------------------------------------------------------|
| 12. Total | 0 |
|------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | X X X |
- --------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 2A
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED) |
| 1 |--------------------------------------------------------------------------------------------------------|
| | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
|------------------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
|---------------------------------------------------------------------------------------------------------------------------------|
| 12. Total |
|---------------------------------------------------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
| | | 12 |
| 1 |--------------------------------------------| Current Year |
| | 9 | 10 | 11 | Premiums |
| | 1994 | 1995 | 1996 | Earned |
|------------------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 | 0 |
|------------------------------------------------------------------------------------|
| 12. Total | 0 |
|------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | X X X |
- --------------------------------------------------------------------------------------
[NONE]
</TABLE>
SCHEDULE P - PART 6R - PRODUCTS LIABILITY - CLAIMS-MADE
SECTION 1B
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| 1 | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITTED) |
| Years in |--------------------------------------------------------------------------------------------------------|
| Which Premiums | | | | | | | |
| Were Earned | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| and Losses | | | | | | | |
| Were Incurred | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
|------------------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
|---------------------------------------------------------------------------------------------------------------------------------|
| 12. Total |
|---------------------------------------------------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
| 1 | | |
| Years in |--------------------------------------------| 12 |
| Which Premiums | | | | |
| Were Earned | 9 | 10 | 11 | Current Year |
| and Losses | | | | Premiums |
| Were Incurred | 1994 | 1995 | 1996 | Earned |
|------------------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 | 0 |
|------------------------------------------------------------------------------------|
| 12. Total | 0 |
|------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | X X X |
- --------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 2B
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
| | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED) |
| 1 |--------------------------------------------------------------------------------------------------------|
| | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
|------------------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
|---------------------------------------------------------------------------------------------------------------------------------|
| 12. Total |
|---------------------------------------------------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
| | | 12 |
| 1 |--------------------------------------------| Current Year |
| | 9 | 10 | 11 | Premiums |
| | 1994 | 1995 | 1996 | Earned |
|------------------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 |
| 3. 1988 | 0 | 0 | 0 | 0 |
| 4. 1989 | 0 | 0 | 0 | 0 |
| 5. 1990 | 0 | 0 | 0 | 0 |
| 6. 1991 | 0 | 0 | 0 | 0 |
| 7. 1992 | 0 | 0 | 0 | 0 |
| 8. 1993 | 0 | 0 | 0 | 0 |
| 9. 1994 | 0 | 0 | 0 | 0 |
| 10. 1995 | X X X | 0 | 0 | 0 |
| 11. 1996 | X X X | X X X | 0 | 0 |
|------------------------------------------------------------------------------------|
| 12. Total | 0 |
|------------------------------------------------------------------------------------|
| 13. Earned Premiums | | | | |
| (Sch P, Part 1) | 0 | 0 | 0 | X X X |
- --------------------------------------------------------------------------------------
[NONE]
</TABLE>
128
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 7A - PRIMARY LOSS SENSITIVE CONTRACT
($000 OMITTED)
SECTION 1
<TABLE>
<CAPTION>
|-----------------------------------------------------------------------------------------------|
| | | | |
| | | | |
| Schedule P - Part 1 | 2 | 3 | 4 |
| | | | |
| | | Net Losses | |
| | Total Net | and Expenses |Loss Sensitive|
| | Losses and | Unpaid on | as Percentage|
| | Expenses |Loss Sensitive | of Total |
| | Unpaid | Contracts | |
| | |
|----------------------------- -----------------------------------------------------------------|
<S> <C> <C> <C> |
|1. Homeowners/Farmowners | 0 | | 0.0|
|2. PrivatePassengerAuto Liabi lity/Medical | 0 | | 0.0|
|3. Commercial Auto/Truck Liability/Medical | 0 | | 0.0|
|4. Workers' Compensation | 0 | | 0.0|
|5. Commercial Multiple Peril | 0 | | 0.0|
|6. Medical Malpractice-Occurrence | 9,022 | | 0.0|
|7. Medical Malpractice-Claims-made | 49,907 | | 0.0|
|8. Special Liability | 0 | | 0.0|
|9. Other Liability-Occurrence | 0 | | 0.0|
|10. Other Liability-Claims-made | 0 | | 0.0|
|11. Special Property | 0 | | 0.0|
|12. Auto Physical Damage | 0 | | 0.0|
|13. Fidelity/Surety | 0 | | 0.0|
|14. Other | 0 | | 0.0|
|15. International | 0 | | 0.0|
|16. ReinsuranceA | X X X | X X X | X X X |
|17. ReinsuranceB | X X X | X X X | X X X |
|18. ReinsuranceC | X X X | X X X | X X X |
|19. ReinsuranceD | X X X | X X X | X X X |
|20. Products Liability-Occurrence | 0 | | 0.0|
|21. Products Liability-Claims-made | 0 | | 0.0|
|22. Financial Guaranty/MortgageGuaranty | 0 | | 0.0|
| -----------------------------------------------------------------------------------------------
|23. Totals 58,929 0 0.0|
|------------------------------------------------------------------------------------------------
</TABLE>
NONE
<TABLE>
<CAPTION>
SECTION 1
|------------------------------------------------------------------------------------------------|
| | 5 | 6 | 7 |
| | | | |
| | Total Net | Net Premiums |Loss Sensitive |
| | Premiums | Written on |as percentage |
| Schedule P - Part 1 | Written | Loss Sensitive| of total |
| | | Contracts | |
| | | | |
| | | | |
| | | | |
|----------------------------- ----------------------------------------------------------------- |
<S> <C> <C> <C> |
|1. Homeowners/Farmowners | 0 | | 0.0 |
|2. PrivatePassengerAutoLiabi lity/Medical | 0 | | 0.0 |
|3. Commercial Auto/TruckLiability/Medical | 0 | | 0.0 |
|4. Workers' Compensation | 0 | | 0.0 |
|5. Commercial Multiple Peril | 0 | | 0.0 |
|6. Medical Malpractice-Occurrence | 481 | | 0.0 |
|7. Medical Malpractice-Claims-made | 11,838 | | 0.0 |
|8. Special Liability | 0 | | 0.0 |
|9. Other Liability-Occurrence | 0 | | 0.0 |
|10. Other Liability-Claims-made | 0 | | 0.0 |
|11. Special Property | 0 | | 0.0 |
|12. Auto Physical Damage | 0 | | 0.0 |
|13. Fidelity/Surety | 0 | | 0.0 |
|14. Other | 0 | | 0.0 |
|15. International | 0 | | 0.0 |
|16. ReinsuranceA | X X X | X X X | X X X |
|17. ReinsuranceB | X X X | X X X | X X X |
|18. ReinsuranceC | X X X | X X X | X X X |
|19. ReinsuranceD | X X X | X X X | X X X |
|20. ProductsLiability-Occurrence | 0 | | 0.0|
|21. ProductsLiability-Claims-made | 0 | | 0.0|
|22. FinancialGuaranty/MortgageGuaranty | 0 | | 0.0|
| ------------------------------------------------------------------------------------------------
|23. Totals 12,319 | 0 | 0.0|
| |
|-------------------------------------------------------------------------------------------------
</TABLE>
NONE
SECTION 2
<TABLE>
<CAPTION>
|-----------------------------------------------------------------------------------------------------------------------------|
| 1 | INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED) |
| | |
| |------------------------------------------------------------------------------------------------
| Year in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Policies Were | | | | | | |
| Issued | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|-----------------------------|---------------|---------------|---------------|---------------|---------------|---------------|
<S> <C> <C> <C> <C> <C> <C> |
|1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
|2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
|3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
|4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
|5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
|6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
|7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
|8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
|9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
|10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
|11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>
NONE
SECTION 2
<TABLE>
<CAPTION>
|---------------------------------------------------------------------------------------------|
| 1 | INCURRED LOSSES AND EXPENSES REPORTED AT YEAR END |
| | ($000 OMITTED) |
| | --------------------------------------------------------------|
| Year in Which | 8 | 9 | 10 | 11 |
| Policies Were | | | | |
| Issued | 1993 | 1994 | 1995 | 1996 |
|-----------------------------|---------------|---------------|---------------|---------------|
<S> <C> <C> <C> <C> |
|Prior | 0 | 0 | 0 | |
|2. 1987 | 0 | 0 | 0 | |
|3. 1988 | 0 | 0 | 0 | |
|4. 1989 | 0 | 0 | 0 | |
|5. 1990 | 0 | 0 | 0 | |
|6. 1991 | 0 | 0 | 0 | |
|7. 1992 | 0 | 0 | 0 | |
|8. 1993 | 0 | 0 | 0 | |
|9. 1994 | X X X | 0 | 0 | |
|10. 1995 | X X X | X X X | 0 | |
|11. 1996 | X X X | X X X | X X X | |
-----------------------------------------------------------------------------------------------
</TABLE>
NONE
SECTION 3
<TABLE>
<CAPTION>
|------------------------------------------------------------------------------------------------------------------------------|
| 1 |BULK AND INCURRED BUT NOT REPORTED RESERVES FOR LOSSES AND ALLOCATED EXPENSES AT YEAR END |
| | ($000 OMITTED) |
- ---------------------------- ----------------------------------------------------------------------------------------------------
| Year in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Policies Were | | | | | | |
| Issued | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|-------------------------- ---|---------------|---------------|---------------|---------------|---------------|---------------|
<S> <C> <C> <C> <C> <C> <C> |
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
|10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
|11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
NONE
SECTION 3
<TABLE>
<CAPTION>
|------------------------------------------------------------------------------------------|
| 1 |BULK AND INCURRED BUT NOT REPORTED RESERVES FOR LOSSES |
| | AND ALLOCTED EXPENSES AT YEAR END ($000 OMITTED) |
|-------------------------| -------------------------------|-------------------------------|
| Year in Which | 8 | 9 | 10 | 11 |
| Policies Were | | | | |
| Issued | 1993 | 1994 | 1995 | 1996 |
- --------------------------| ---------------|---------------|---------------|---------------|
|<S> <C> <C> <C> <C> |
|1. Prior | 0 | 0 | 0 | |
|2. 1987 | 0 | 0 | 0 | |
|3. 1988 | 0 | 0 | 0 | |
|4. 1989 | 0 | 0 | 0 | |
|5. 1990 | 0 | 0 | 0 | |
|6. 1991 | 0 | 0 | 0 | |
|7. 1992 | 0 | 0 | 0 | |
|8. 1993 | 0 | 0 | 0 | |
|9. 1994 | X X X | 0 | 0 | |
|10. 1995 | X X X | X X X | 0 | |
|11. 1996 | X X X | X X X | X X X | |
- ---------------------------------------------------------------------------------------------
</TABLE>
NONE
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 7A - PRIMARY LOSS SENSITIVE CONTRACTS (Continued)
<TABLE>
<CAPTION>
SECTION 4
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
| 1 | NET EARNED PREMIUMS REPORTED AT YEAR END ($000 OMITTED) |
| |-----------------------------------------------------------------------------------------------------|
| Years | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| in Which | | | | | | | |
|Policies Were| | | | | | | |
| Issued | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SECTION 4
<S> <C> <C> <C>
- -------------------------------------------------------------
| 1 | |
| |--------------------------------------------|
| Years | 9 | 10 | 11 |
| in Which | | | |
|Policies Were | | | |
| Issued | 1994 | 1995 | 1996 |
|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | |
| 2. 1987 | 0 | 0 | |
| 3. 1988 | 0 | 0 | |
| 4. 1989 | 0 | 0 | |
| 5. 1990 | 0 | 0 | |
| 6. 1991 | 0 | 0 | |
| 7. 1992 | 0 | 0 | |
| 8. 1993 | 0 | 0 | |
| 9. 1994 | 0 | 0 | |
| 10. 1995 | X X X | 0 | |
| 11. 1996 | X X X | X X X | |
- ------------------------------------------------------------
[NONE]
</TABLE>
<TABLE>
<CAPTION>
SECTION 5
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
| 1 | NET RESERVE FOR PREMIUM ADJUSTMENTS AND ACCRUED RETROSPECTIVE PREMIUMS AT YEAR END ($000 OMITTED) |
| |-----------------------------------------------------------------------------------------------------|
| Years | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| in Which | | | | | | | |
|Policies Were| | | | | | | |
| Issued | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
|-------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X | 0 |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SECTION 5
<S> <C> <C> <C>
- -------------------------------------------------------------
| 1 | |
| |--------------------------------------------|
| Years | 9 | 10 | 11 |
| in Which | | | |
|Policies Were | | | |
| Issued | 1994 | 1995 | 1996 |
|--------------|--------------|--------------|--------------|
| 1. Prior | 0 | 0 | |
| 2. 1987 | 0 | 0 | |
| 3. 1988 | 0 | 0 | |
| 4. 1989 | 0 | 0 | |
| 5. 1990 | 0 | 0 | |
| 6. 1991 | 0 | 0 | |
| 7. 1992 | 0 | 0 | |
| 8. 1993 | 0 | 0 | |
| 9. 1994 | 0 | 0 | |
| 10. 1995 | X X X | 0 | |
| 11. 1996 | X X X | X X X | |
- ------------------------------------------------------------
[NONE]
</TABLE>
130
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 7B - REINSURANCE LOSS SENSITIVE CONTRACTS
($000 OMITTED)
SECTION 1
<TABLE>
<CAPTION>
|-----------------------------------------------------------------------------------------------------------------------------
| | 2 | 3 |
| | | Net Losses |
| | Total Net | and Expenses |
| Schedule P - Part 1 | Losses and | Unpaid on |
| | Expenses |Loss Sensitive |
| | Unpaid | Contracts |
|--------------------------------------------------------------------------------------------|---------------|---------------|
<S> <C> <C> |
| 1. Homeowners/Farmowners | 0 | |
| 2. Private Passenger Auto Liability/Medical | 0 | |
| 3. Commercial Auto/Truck Liability/Medical | 0 | |
| 4. Workers' Compensation | 0 | |
| 5. Commercial Multiple Peril | 0 | |
| 6. Medical Malpractice - Occurrence | 9,022 | |
| 7. Medical Malpractice - Claims-made | 49,907 | |
| 8. Special Liability | 0 | |
| 9. Other Liability - Occurrence | 0 | |
|10. Other Liability - Claims-made | 0 | |
|11. Special Property | 0 | |
|12. Auto Physical Damage | 0 | |
|13. Fidelity/Surety | 0 | |
|14. Other | 0 | |
|15. International | 0 | |
|16. Reinsurance A | 0 | |
|17. Reinsurance B | 0 | |
|18. Reinsurance C | 0 | |
|19. Reinsurance D | 0 | |
|20. Products Liability - Occurrence | 0 | |
|21. Products Liability - Claims-made | 0 | |
|22. Financial Guaranty/Mortgage Guaranty | 0 | |
|--------------------------------------------------------------------------------------------|---------------|---------------|
|23. Totals | 58,929 | 0 |
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
|-----------------------------------------------------------------------------------------------------------------------------
| | 4 | 5 |
| | | |
| |Loss Sensitive | Total Net |
| Schedule P - Part 1 | as Percentage | Premiums |
| | of Total | Written |
| | | |
|--------------------------------------------------------------------------------------------|---------------|---------------|
<S> <C> <C> |
| 1. Homeowners/Farmowners | 0.0 | 0 |
| 2. Private Passenger Auto Liability/Medical | 0.0 | 0 |
| 3. Commercial Auto/Truck Liability/Medical | 0.0 | 0 |
| 4. Workers' Compensation | 0.0 | 0 |
| 5. Commercial Multiple Peril | 0.0 | 0 |
| 6. Medical Malpractice - Occurrence | 0.0 | 481 |
| 7. Medical Malpractice - Claims-made | 0.0 | 11,838 |
| 8. Special Liability | 0.0 | 0 |
| 9. Other Liability - Occurrence | 0.0 | 0 |
|10. Other Liability - Claims-made | 0.0 | 0 |
|11. Special Property | 0.0 | 0 |
|12. Auto Physical Damage | 0.0 | 0 |
|13. Fidelity/Surety | 0.0 | 0 |
|14. Other | 0.0 | 0 |
|15. International | 0.0 | 0 |
|16. Reinsurance A | 0.0 | 0 |
|17. Reinsurance B | 0.0 | 0 |
|18. Reinsurance C | 0.0 | 0 |
|19. Reinsurance D | 0.0 | X X X |
|20. Products Liability - Occurrence | 0.0 | 0 |
|21. Products Liability - Claims-made | 0.0 | 0 |
|22. Financial Guaranty/Mortgage Guaranty | 0.0 | 0 |
|--------------------------------------------------------------------------------------------|---------------|---------------|
|23. Totals | 0.0 | 12,319 |
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
|-----------------------------------------------------------------------------------------------------------------------------
| | 6 | 7 |
| | | |
| | Net Premiums |Loss Sensitive |
| Schedule P - Part 1 | Written on | as Percentage |
| |Loss Sensitive | of Total |
| | Contracts | |
|--------------------------------------------------------------------------------------------|---------------|---------------|
<S> <C> <C> |
| 1. Homeowners/Farmowners | | 0.0 |
| 2. Private Passenger Auto Liability/Medical | | 0.0 |
| 3. Commercial Auto/Truck Liability/Medical | | 0.0 |
| 4. Workers' Compensation | | 0.0 |
| 5. Commercial Multiple Peril | | 0.0 |
| 6. Medical Malpractice - Occurrence | | 0.0 |
| 7. Medical Malpractice - Claims-made | | 0.0 |
| 8. Special Liability | | 0.0 |
| 9. Other Liability - Occurrence | | 0.0 |
|10. Other Liability - Claims-made | | 0.0 |
|11. Special Property | | 0.0 |
|12. Auto Physical Damage | | 0.0 |
|13. Fidelity/Surety | | 0.0 |
|14. Other | | 0.0 |
|15. International | | 0.0 |
|16. Reinsurance A | | 0.0 |
|17. Reinsurance B | | 0.0 |
|18. Reinsurance C | | 0.0 |
|19. Reinsurance D | X X X | X X X |
|20. Products Liability - Occurrence | | 0.0 |
|21. Products Liability - Claims-made | | 0.0 |
|22. Financial Guaranty/Mortgage Guaranty | | 0.0 |
|--------------------------------------------------------------------------------------------|---------------|---------------|
|23. Totals | 0 | 0.0 |
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
NONE
SECTION 2
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
| 1 | INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED) |
| |-----------------------------------------------------------------------------------------------------|
| Years in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Policies Were | | | | | | |
| Issued | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|-------------------|----------------|----------------|----------------|----------------|----------------|----------------|
<S> <C> <C> <C> <C> <C> <C> |
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
| 1 | |
| |-------------------------------------------------------------------|
| Years in Which | 8 | 9 | 10 | 11 |
| Policies Were | | | | |
| Issued | 1993 | 1994 | 1995 | 1996 |
|-------------------|----------------|----------------|----------------|----------------|
<S> <C> <C> <C> <C> |
| 1. Prior | 0 | 0 | 0 | |
| 2. 1987 | 0 | 0 | 0 | |
| 3. 1988 | 0 | 0 | 0 | |
| 4. 1989 | 0 | 0 | 0 | |
| 5. 1990 | 0 | 0 | 0 | |
| 6. 1991 | 0 | 0 | 0 | |
| 7. 1992 | 0 | 0 | 0 | |
| 8. 1993 | 0 | 0 | 0 | |
| 9. 1994 | X X X | 0 | 0 | |
| 10. 1995 | X X X | X X X | 0 | |
| 11. 1996 | X X X | X X X | X X X | |
- -----------------------------------------------------------------------------------------
</TABLE>
NONE
SECTION 3
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
| 1 | BULK AND INCURRED BUT NOT REPORTED RESERVES FOR LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMMITTED)|
| |-----------------------------------------------------------------------------------------------------------|
| Years in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Policies Were | | | | | | |
| Issued | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|-------------------|----------------|----------------|----------------|----------------|----------------|----------------------|
<S> <C> <C> <C> <C> <C> <C> |
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
| 1 | |
| |-------------------------------------------------------------------|
| Years in Which | 8 | 9 | 10 | 11 |
| Policies Were | | | | |
| Issued | 1993 | 1994 | 1995 | 1996 |
|-------------------|----------------|----------------|----------------|----------------|
<S> <C> <C> <C> <C> |
| 1. Prior | 0 | 0 | 0 | |
| 2. 1987 | 0 | 0 | 0 | |
| 3. 1988 | 0 | 0 | 0 | |
| 4. 1989 | 0 | 0 | 0 | |
| 5. 1990 | 0 | 0 | 0 | |
| 6. 1991 | 0 | 0 | 0 | |
| 7. 1992 | 0 | 0 | 0 | |
| 8. 1993 | 0 | 0 | 0 | |
| 9. 1994 | X X X | 0 | 0 | |
| 10. 1995 | X X X | X X X | 0 | |
| 11. 1996 | X X X | X X X | X X X | |
- -----------------------------------------------------------------------------------------
</TABLE>
NONE
131
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P - PART 7B - REINSURANCE LOSS SENSITIVE CONTRACTS (Continued)
SECTION 4
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
| 1 | NET EARNED PREMIUMS REPORTED AT YEAR END ($000 OMITTED) |
| |-----------------------------------------------------------------------------------------------------|
| Years in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Policies Were | | | | | | |
| Issued | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|-------------------|----------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| 1 | |
| |-------------------------------------------------------------------|
| Years in Which | 8 | 9 | 10 | 11 |
| Policies Were | | | | |
| Issued | 1993 | 1994 | 1995 | 1996 |
|-------------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | |
| 2. 1987 | 0 | 0 | 0 | |
| 3. 1988 | 0 | 0 | 0 | |
| 4. 1989 | 0 | 0 | 0 | |
| 5. 1990 | 0 | 0 | 0 | |
| 6. 1991 | 0 | 0 | 0 | |
| 7. 1992 | 0 | 0 | 0 | |
| 8. 1993 | 0 | 0 | 0 | |
| 9. 1994 | X X X | 0 | 0 | |
| 10. 1995 | X X X | X X X | 0 | |
| 11. 1996 | X X X | X X X | X X X | |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 5
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
| 1 | NET RESERVE FOR PREMIUM ADJUSTMENTS AND ACCRUED RETROSPECTIVE PREMIUMS AT YEAR END ($000 OMITTED) |
| |-----------------------------------------------------------------------------------------------------|
| Years in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Policies Were | | | | | | |
| Issued | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|-------------------|----------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| 1 | |
| |-------------------------------------------------------------------|
| Years in Which | 8 | 9 | 10 | 11 |
| Policies Were | | | | |
| Issued | 1993 | 1994 | 1995 | 1996 |
|-------------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | |
| 2. 1987 | 0 | 0 | 0 | |
| 3. 1988 | 0 | 0 | 0 | |
| 4. 1989 | 0 | 0 | 0 | |
| 5. 1990 | 0 | 0 | 0 | |
| 6. 1991 | 0 | 0 | 0 | |
| 7. 1992 | 0 | 0 | 0 | |
| 8. 1993 | 0 | 0 | 0 | |
| 9. 1994 | X X X | 0 | 0 | |
| 10. 1995 | X X X | X X X | 0 | |
| 11. 1996 | X X X | X X X | X X X | |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 6
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
| 1 | INCURRED ADJUSTABLE COMMISSIONS REPORTED AT YEAR END ($000 OMITTED) |
| |-----------------------------------------------------------------------------------------------------|
| Years in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Policies Were | | | | | | |
| Issued | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|-------------------|----------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| 1 | |
| |-------------------------------------------------------------------|
| Years in Which | 8 | 9 | 10 | 11 |
| Policies Were | | | | |
| Issued | 1993 | 1994 | 1995 | 1996 |
|-------------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | |
| 2. 1987 | 0 | 0 | 0 | |
| 3. 1988 | 0 | 0 | 0 | |
| 4. 1989 | 0 | 0 | 0 | |
| 5. 1990 | 0 | 0 | 0 | |
| 6. 1991 | 0 | 0 | 0 | |
| 7. 1992 | 0 | 0 | 0 | |
| 8. 1993 | 0 | 0 | 0 | |
| 9. 1994 | X X X | 0 | 0 | |
| 10. 1995 | X X X | X X X | 0 | |
| 11. 1996 | X X X | X X X | X X X | |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
SECTION 7
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
| 1 | RESERVES FOR COMMISSION ADJUSTMENTS AT YEAR END ($000 OMITTED) |
| |-----------------------------------------------------------------------------------------------------|
| Years in Which | 2 | 3 | 4 | 5 | 6 | 7 |
| Policies Were | | | | | | |
| Issued | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|-------------------|----------------|----------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. 1987 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. 1988 | X X X | 0 | 0 | 0 | 0 | 0 |
| 4. 1989 | X X X | X X X | 0 | 0 | 0 | 0 |
| 5. 1990 | X X X | X X X | X X X | 0 | 0 | 0 |
| 6. 1991 | X X X | X X X | X X X | X X X | 0 | 0 |
| 7. 1992 | X X X | X X X | X X X | X X X | X X X | 0 |
| 8. 1993 | X X X | X X X | X X X | X X X | X X X | X X X |
| 9. 1994 | X X X | X X X | X X X | X X X | X X X | X X X |
| 10. 1995 | X X X | X X X | X X X | X X X | X X X | X X X |
| 11. 1996 | X X X | X X X | X X X | X X X | X X X | X X X |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
| 1 | |
| |-------------------------------------------------------------------|
| Years in Which | 8 | 9 | 10 | 11 |
| Policies Were | | | | |
| Issued | 1993 | 1994 | 1995 | 1996 |
|-------------------|----------------|----------------|----------------|----------------|
| 1. Prior | 0 | 0 | 0 | |
| 2. 1987 | 0 | 0 | 0 | |
| 3. 1988 | 0 | 0 | 0 | |
| 4. 1989 | 0 | 0 | 0 | |
| 5. 1990 | 0 | 0 | 0 | |
| 6. 1991 | 0 | 0 | 0 | |
| 7. 1992 | 0 | 0 | 0 | |
| 8. 1993 | 0 | 0 | 0 | |
| 9. 1994 | X X X | 0 | 0 | |
| 10. 1995 | X X X | X X X | 0 | |
| 11. 1996 | X X X | X X X | X X X | |
- -----------------------------------------------------------------------------------------
[NONE]
</TABLE>
132
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1996 OF THE MEDICAL DEFENSE ASSOCIATES
SCHEDULE P INTERROGATORIES
- --------------------------------------------------------------------------------
1. Computation of excess statutory reserves over statement reserves.
a. Auto Liability (private passenger and commercial)
1996 $0 ( 60.0%) 1995 $0 ( 60.0%) 1994 $0 ( 60.0%)
------------ ------------ ------------
Total $0
-----
b. Other Liability and Products Liability
1996 $0 ( 60.0%) 1995 $0 ( 60.0%) 1994 $0 ( 60.0%)
------------ ------------ ------------
Total $0
-----
c. Medical Malpractice
1996 $0 ( 60.0%) 1995 $0 ( 60.0%) 1994 $0 ( 60.0%)
------------ ------------ ------------
Total $0
-----
d. Workers' Compensation
1996 $0 ( 65.0%) 1995 $0 ( 65.0%) 1994 $0 ( 65.0%)
------------ ------------ ------------
Total $0
-----
e. Credit Total $0
-----
f. All Lines Total (Report here and Page 3) Total $0
-----
2. What is the extended loss and expense reserve--direct and assumed--for the
following classes? An example of an extended loss and expense reserve is the
actuarial reserve for the free-tail coverage arising upon death, disability
or retirement in most medical malpractice policies. Such a liability is to be
reported here even if it was not reported elsewhere in Schedule P, but
otherwise reported as a liability line on page 3. Show the full reserve
amount, not just the change during the current year.
------------------------------------------------------------------------
| Year in which premiums | 1 | 2 | 3 |
| were earned and losses | Medical | Other | Products |
| were incurred | Malpractice | Liability | Liability |
|----------------------------------------------------------------------|
| a. 1987 | | | |
| b. 1988 | | | |
| c. 1989 | | | |
| d. 1990 | | | |
| e. 1991 | | | |
| f. 1992 | | | |
| g. 1993 | | | |
| h. 1994 | | | |
| i. 1995 | | | |
| j. 1996 | 1,000,000 | | |
|----------------------------------------------------------------------|
| k. Totals | 1,000,000 | 0 | 0 |
------------------------------------------------------------------------
3. The term "Loss expense" includes all payments for legal expenses, including
attorney's and witness fees and court costs, salaries and expenses of
investigators, adjustors and field men, rents, stationery, telegraph and
telephone charges, postage, salaries and expenses of office employees, home
office expenses and all other payments under or on account of such injuries,
whether the payments are allocated to specific claims or are unallocated. Are
they so reported in this statement?
Answer: Yes [ X ] No [ ]
4. The unallocated loss expense payments paid during the most recent calendar
year should be distributed to the various years in which losses were incurred
as follows: (1) 45% to the most recent year, (2) 5% to the next most recent
year, and (3) the balance to all years, including the most recent, in
proportion to the amount of loss payments paid for each year during the most
recent calendar year. If the distribution in (1) or (2) produces an
accumulated distribution to such year in excess of 10% of the premiums earned
for such year, disregarding all distributions made under (3), such
accumulated distribution should be limited to 10% of premiums earned and the
balance distributed in accordance with (3). Are they so reported in this
Statement?
Answer: Yes [ X ] No [ ]
5. Do any lines in Schedule P include reserves which are reported gross of any
discount to present value of future payments, but are reported net of such
discounts on page 11?
Answer: Yes [ X ] No [ ]
If yes, proper reporting must be made in the Notes to Financial Statements,
as specified in the Instructions. Also, the discounts must be reported in
Schedule P--Part 1, Columns 31 and 32.
Schedule P must be completed gross of non-tabular discounting. Work papers
relating to discount calculations must be available for examination upon
request.
Discounting is allowed only if expressly permitted by the state insurance
department to which this Annual Statement is being filed.
6. What were the net premiums in force at the end of the year for:
(in thousands of dollars)
a. Fidelity $0
b. Surety $0
7. Claim count information is reported (check one) a. per claim X
If not the same in all years, explain in Question 8. -----
b. per claimant
-----
8. The Information provided in Schedule P will be used by many persons to
estimate the adequacy of the current loss and expense reserves, among other
things. Are they any especially significant events, coverage, retention or
accounting changes which have occurred which must be considered when making
such analyses? (An extended statement may be attached.) During 1995 the
Company began the process of phasing out its non-tabular discount included in
the Company's 1994 annual statement is being phased out over five years by
reducing the discount shown, as of December 31, 1994, by 20% each year for
all accident years 1994 and prior. This discounting phase out plan has been
approved by the Missouri Department of Insurance. ...........................
.............................................................................
.............................................................................
.............................................................................
.............................................................................
133
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 7
<LEGEND>
This schedule contains summary financial information extracted from The
Company's Financial Statements for the twelve months ended December 31, 1996 and
is qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<DEBT-HELD-FOR-SALE> 78,789,906
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 0
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 83,298,646
<CASH> 3,514,854
<RECOVER-REINSURE> 1,953,798
<DEFERRED-ACQUISITION> 0
<TOTAL-ASSETS> 96,778,494
<POLICY-LOSSES> 63,205,000
<UNEARNED-PREMIUMS> 7,571,534
<POLICY-OTHER> 0
<POLICY-HOLDER-FUNDS> 273,679
<NOTES-PAYABLE> 0
<COMMON> 509,801
0
9,208,851
<OTHER-SE> 12,116,838
<TOTAL-LIABILITY-AND-EQUITY> 96,778,494
13,200,021
<INVESTMENT-INCOME> 5,583,656
<INVESTMENT-GAINS> 94,918
<OTHER-INCOME> 825
<BENEFITS> 20,379,346
<UNDERWRITING-AMORTIZATION> 374,546
<UNDERWRITING-OTHER> 2,396,302
<INCOME-PRETAX> (4,705,629)
<INCOME-TAX> 795,413
<INCOME-CONTINUING> (5,501,042)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (5,501,042)
<EPS-PRIMARY> (.23)
<EPS-DILUTED> (.23)
<RESERVE-OPEN> 65,660,000
<PROVISION-CURRENT> 15,802,388
<PROVISION-PRIOR> 4,576,958
<PAYMENTS-CURRENT> 749,388
<PAYMENTS-PRIOR> 21,652,958
<RESERVE-CLOSE> 63,205,000
<CUMULATIVE-DEFICIENCY> 4,576,958
</TABLE>
