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                                                                   EXHIBIT 10.10

                                 ADDENDUM NO. 1

                      Attaching to and forming part of the

                   COMMERCIAL AND PRIVATE PASSENGER AUTOMOBILE
                               QUOTA SHARE TREATY

                  (hereinafter referred to as the "Agreement")

                                    issued to

                      FEDERATED NATIONAL INSURANCE COMPANY

                               Plantation, Florida
                   (hereinafter referred to as the "Company")

                                       by

                     The Subscribing Reinsurer executing the
                 Interests and Liabilities Contract attaching to
                      And forming a part of this Agreement
                  (hereinafter referred to as the "Reinsurer")


IT IS HEREBY MUTUALLY AGREED by the parties that that effective 12:01 a.m.,
Eastern Standard Time, December 31, 1999, Article 2- Cover of this Agreement,
paragraph A will be deleted and replaced in its entirety with:

The Company will cede, and the Reinsurer will accept as reinsurance, a 30% share
of all business reinsured (Sections A and B) hereunder subject to the maximum
Policy limits stated below:

IT IS ALSO MUTUALLY AGREED by the parties that that effective 12:01 a.m.,
Eastern Standard Time, January 1, 2000, Article 7- Reports and Remittances, will
be revised by the addition of the following sentence:

Effective December 31, 1999 the reinsurer's share of the incoming unearned
premium reserve shall be 30%.

             ALL OTHER TERMS AND CONDITIONS SHALL REMAIN UNCHANGED.




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IN WITNESS WHEREOF, the parties hereto by their duly authorized representatives
have executed this ADDENDUM NO. 1 in duplicate, as of the dates undermentioned.

Signed in Plantation, Florida on this 15 day of November 2000.

                                       FEDERATED NATIONAL INSURANCE COMPANY

                                       /s/ Richard A. Widdicombe
                                       --------------------------------------


and in New York, New York on this 8th day of November 2000.

                                         TRANSATLANTIC REINSURANCE COMPANY

                                         /s/ Suzanne A. Spantidos
                                       --------------------------------------








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