• Claims made exposures, which are now retained by Princeton, were previously included in the Multiline Excess Reinsurance Agreement with Accord (see commutations below). Premiums ceded relating to this Multiline treaty before the commutation were $12,142,000 in 2001 and $26,721,000 in 2000.
  
  
• Activated tail coverage for insureds who terminated coverage on or before December 31, 1998 is reinsured with American Re. For insureds who terminated coverage prior to December 31, 1997, the Company retained liability for the first $50,000,000 of losses settled. American Re provides coverage for losses in excess of $50,000,000 up to $222,500,000. For insureds who terminated coverage during 1998, American Re provides ground up coverage up to a limit of $31,745,000.
  
  
• Effective December 31, 2000, unactivated tail coverage for policyholders at December 31, 1998 is reinsured with MLMIC subject to an aggregate limit of $180,000,000. The Company ceded an initial premium of $51,000,000 to MLMIC for this coverage. Prior to December 31, 2000, this coverage was reinsured with Continental Insurance Company. The Company has retained the unactivated tail exposure for 1999 through 2001 for new policyholders and reported it on an occurrence basis.

In 2001 and 2000, the Company commuted certain of its reinsurance coverage as follows:

• Effective September 30, 2001, Princeton commuted liabilities ceded to Accord Re. for losses incurred for 1997 through 2001 under the Multiline Excess of Reinsurance agreement. As a result, Princeton increased its net loss and loss adjustment expense reserves by $89,500,848 and recognized $115,408,084 in investments and receivables and a reduction of losses and loss adjustment expense paid. The net effect of the commutation of this treaty on calendar year 2001 was a gain of $25,907,236.
  
  
• Effective December 31, 2000, for the unactivated occurrence plus policies on inforce business as of December 31, 1998, Princeton commuted liabilities ceded to Continental Insurance Company and received (release of funds held) approximately $107,000,000. For the unactivated occurrence plus policies on inforce business as of December 31, 1998 which were still inforce as of December 31, 2000, Princeton ceded 100% of these liabilities to MLMIC for $51,000,000. For the losses related to occurrence plus policies which were unactivated as of December 31, 1998 but were subsequently activated in 1999 and 2000, Princeton recognized and retained loss and loss adjustment expense reserves of $38,238,054 and reduced losses and loss adjustment expenses paid by the same amount. The net effect of the commutation of this treaty on calendar year 2000 was a gain of $17,725,000