Common use of Adjustments to Percentage Participation and Percentage Liability Clause in Contracts

Adjustments to Percentage Participation and Percentage Liability. 9.1 If any Qualifying Insurer becomes a Run-off Insurer during any Indemnity Period (but not thereafter) then: 9.1.1 the Percentage Participation of each of the other Qualifying Insurers in respect of the unexpired part of the relevant Indemnity Period shall be recalculated in accordance with the formula set out in paragraph 3.7 but excluding the Relevant Premium Income of the Run-off Insurer in question; and 9.1.2 the Percentage Participation of the Run-off Insurer in question in respect of the unexpired part of the relevant Indemnity Period shall equal zero. 9.2 The Percentage Participation adjusted under paragraph 9.1 shall apply from the date on which the Run-off Insurer in question became a Run-off Insurer. 9.3 If at any time after the start of any Indemnity Period any Qualifying Insurer or Run-off Insurer which is or was a participant in the ARP during that Indemnity Period is the subject of an Insolvency Event, then: 9.3.1 in the case of an insurer which was a Qualifying Insurer immediately prior to the Insolvency Event, paragraph 9.1 shall apply; and 9.3.2 for the purposes of any claim first made, or arising from circumstances first notified to the ARP Manager before the date of the relevant Insolvency Event, no adjustment shall be made in accordance with paragraph 9.3.1. However, the Percentage Liability of each of the other Qualifying Insurers in relation to Defence Costs and any associated costs and/or expenses incurred by each of the other Qualifying Insurers in respect of each ARP Policy on or after the date of the relevant Insolvency Event may be recalculated by the ARP Manager (in its absolute discretion) in accordance with the formula set out in paragraph 3.7 but excluding the Relevant Premium Income of the Qualifying Insurer or Run-off Insurer which is the subject of the Insolvency Event; and 9.3.3 the Percentage Liability of each of the other Qualifying Insurers in respect of each ARP Policy and any arrangements made pursuant to paragraph 2.8 in force immediately prior to the date of the relevant Insolvency Event shall, with effect from the date of the relevant Insolvency Event, for the purposes of any claim first made, or arising from circumstances first notified to the ARP Manager, on or after the date of the relevant Insolvency Event, equal their respective Percentage Participation on that date after adjustment (if applicable) in accordance with paragraph 9.3.1; and 9.3.4 the Percentage Liability of the Qualifying Insurer or Run-off Insurer in question in respect of the unexpired part of the relevant Indemnity Period shall equal zero. 9.4 Without prejudice to paragraph 3.9 the ARP Manager may, in its absolute discretion, at any time during or after the end of any Indemnity Period adjust the Initial Participation, the Percentage Participation and/or the Percentage Liability of each Qualifying Insurer prospectively or retrospectively in the light of information relating to the Relevant Premium Income of one or more Qualifying Insurers obtained or received by the ARP Manager which indicates that the Relevant Premium Income of such Qualifying Insurers is greater than that previously declared to the ARP Manager. 9.5 The ARP Manager shall notify in writing: 9.5.1 each Qualifying Insurer of its revised Percentage Participation; and 9.5.2 each ARP Firm of the revised Percentage Participations of each of the Qualifying Insurers, by no later than 10 business days following any adjustment being made in accordance with any of the provisions of this paragraph 9.

Adjustments to Percentage Participation and Percentage Liability. 9.1 If any Qualifying Insurer becomes a Run-off Insurer during any Indemnity Period (but not thereafter) then: 9.1.1 the Percentage Participation of each of the other Qualifying Insurers in respect of the unexpired part of the relevant Indemnity Period shall be recalculated in accordance with the formula set out in paragraph 3.7 but excluding the Relevant Premium Income of the Run-off Insurer in question; and 9.1.2 the Percentage Participation of the Run-off Insurer in question in respect of the unexpired part of the relevant Indemnity Period shall equal zero. 9.2 The Percentage Participation adjusted under paragraph 9.1 shall apply from the date on which the Run-off Insurer in question became a Run-off Insurer. 9.3 If at any time after the start of any Indemnity Period any Qualifying Insurer or Run-off Insurer which is or was a participant in the ARP during that Indemnity Period is the subject of an Insolvency Event, then: 9.3.1 in the case of an insurer which was a Qualifying Insurer immediately prior to the Insolvency Event, paragraph 9.1 shall apply; and 9.3.2 for the purposes of any claim first made, or arising from circumstances first notified to the ARP Manager before the date of the relevant Insolvency Event, no adjustment shall be made in accordance with paragraph 9.3.1. However, the Percentage Liability of each of the other Qualifying Insurers in relation to Defence Costs and any associated costs and/or expenses incurred by each of the other Qualifying Insurers in respect of each ARP Policy on or after the date of the relevant Insolvency Event may be recalculated by the ARP Manager (in its absolute discretion) in accordance with the formula set out in paragraph 3.7 but excluding the Relevant Premium Income of the Qualifying Insurer or Run-off Insurer which is the subject of the Insolvency Event; and 9.3.3 the Percentage Liability of each of the other Qualifying Insurers in respect of each ARP Policy and any arrangements made pursuant to paragraph 2.8 in force immediately prior to the date of the relevant Insolvency Event shall, with effect from the date of the relevant Insolvency Event, for the purposes of any claim first made, or arising from circumstances first notified to the ARP Manager, on or after the date of the relevant Insolvency Event, equal their respective Percentage Participation on that date after adjustment (if applicable) in accordance with paragraph 9.3.1; and 9.3.4 the Percentage Liability of the Qualifying Insurer or Run-off Insurer in question in respect of the unexpired part of the relevant Indemnity Period shall equal zero. 9.4 Without prejudice to paragraph 3.9 the ARP Manager may, in its absolute discretion, at any time during or after the end of any Indemnity Period adjust the Initial Participation, the Percentage Participation and/or the Percentage Liability of each Qualifying Insurer prospectively or retrospectively in the light of information relating to the Relevant Premium Income of one or more Qualifying Insurers obtained or received by the ARP Manager which indicates that the Relevant Premium Income of such Qualifying Insurers is greater than that previously declared to the ARP Manager. 9.5 The ARP Manager shall notify in writing: 9.5.1 each Qualifying Insurer of its revised Percentage Participation; and 9.5.2 each ARP Firm of the revised Percentage Participations of each of the Qualifying Insurers, by no later than 10 business days following any adjustment being made in accordance with any of the provisions of this paragraph 9.

Adjustments to Percentage Participation and Percentage Liability. 9.1 If any Qualifying Insurer becomes a Run-off Insurer during any Indemnity Period (but not thereafter) then: 9.1.1 the Percentage Participation of each of the other Qualifying Insurers in respect of the unexpired part of the relevant Indemnity Period shall be recalculated in accordance with the formula set out in paragraph 3.7 but excluding the Relevant Premium Income of the Run-off Insurer in question; and 9.1.2 the Percentage Participation of the Run-off Insurer in question in respect of the unexpired part of the relevant Indemnity Period shall equal zero. 9.2 The Percentage Participation adjusted under paragraph 9.1 shall apply from the date on which the Run-off Insurer in question became a Run-off Insurer. 9.3 If at any time after the start of any Indemnity Period any Qualifying Insurer or Run-off Insurer which is or was a participant in the ARP during that Indemnity Period is the subject of an Insolvency Event, then: 9.3.1 in the case of an insurer which was a Qualifying Insurer immediately prior to the Insolvency Event, paragraph 9.1 shall apply; and 9.3.2 for the purposes of any claim first made, or arising from circumstances first notified to the ARP Manager before the date of the relevant Insolvency Event, no adjustment shall be made in accordance with paragraph 9.3.1. However, the Percentage Liability of each of the other Qualifying Insurers in relation to Defence Costs and any associated costs and/or expenses incurred by each of the other Qualifying Insurers in respect of each ARP Policy on or after the date of the relevant Insolvency Event may be recalculated by the ARP Manager (in its absolute discretion) in accordance with the formula set out in paragraph 3.7 but excluding the Relevant Premium Income of the Qualifying Insurer or Run-off Insurer which is the subject of the Insolvency Event; and 9.3.3 the Percentage Liability of each of the other Qualifying Insurers in respect of each ARP Policy and any arrangements made pursuant to paragraph 2.8 in force immediately prior to the date of the relevant Insolvency Event shall, with effect from the date of the relevant Insolvency Event, for the purposes of any claim first made, or arising from circumstances first notified to the ARP Manager, on or after the date of the relevant Insolvency Event, equal their respective Percentage Participation on that date after adjustment (if applicable) in accordance with paragraph 9.3.1; and 9.3.4 the Percentage Liability of the Qualifying Insurer or Run-off Insurer in question in respect of and each other Qualifying Insurer shall remain the unexpired part of same as it was immediately prior to the relevant Indemnity Period shall equal zeroInsolvency Event. 9.4 Without prejudice to paragraph 3.9 the ARP Manager may, in its absolute discretion, at any time during or after the end of any Indemnity Period adjust the Initial Participation, the Percentage Participation and/or the Percentage Liability of each Qualifying Insurer prospectively or retrospectively in the light of information relating to the Relevant Premium Income of one or more Qualifying Insurers obtained or received by the ARP Manager which indicates that that: 9.4.1 the Relevant Premium Income of any such Qualifying Insurers Insurer is greater than that previously declared to the ARP ManagerManager pursuant to paragraphs 3.1 and 3.4 of this Schedule; or 9.4.2 the declaration of Relevant Premium Income made by any such Qualifying Insurer pursuant to paragraphs 3.1 and 3.4 of this Schedule understates the premium (including any risk premium in respect of the ARP and all levies and charges relating to a Policy) due from Firms to the Qualifying Insurer (excluding any amount in respect of Insurance Premium Tax), whether or not actually received by that Qualifying Insurer, in respect of each Policy incepting in the period 1 February 2012 to 31 January 2013 to the extent that such premium relates to cover required in accordance with the Minimum Terms for the Policy Period applicable to the Policy. 9.5 The ARP Manager shall notify in writing: 9.5.1 each Qualifying Insurer of its revised Percentage Participation; and 9.5.2 each ARP Firm of the revised Percentage Participations of each of the Qualifying Insurers, by no later than 10 business days following any adjustment being made in accordance with any of the provisions of this paragraph 9.

Adjustments to Percentage Participation and Percentage Liability. 9.1 If any Qualifying Insurer becomes a Run-off Insurer during any Indemnity Period (but not thereafter) then: 9.1.1 the Percentage Participation of each of the other Qualifying Insurers in respect of the unexpired part of the relevant Indemnity Period shall be recalculated in accordance with the formula set out in paragraph 3.7 but excluding the Relevant Premium Income of the Run-off Insurer in question; and 9.1.2 the Percentage Participation of the Run-off Insurer in question in respect of the unexpired part of the relevant Indemnity Period shall equal zero. 9.2 The Percentage Participation adjusted under paragraph 9.1 shall apply from the date on which the Run-off Insurer in question became a Run-off Insurer. 9.3 If at any time after the start of any Indemnity Period any Qualifying Insurer or Run-off Insurer which is or was a participant in the ARP during that Indemnity Period is the subject of an Insolvency Event, then: 9.3.1 in the case of an insurer which was a Qualifying Insurer immediately prior to the Insolvency Event, paragraph 9.1 shall apply; and 9.3.2 for the purposes of any claim first made, or arising from circumstances first notified to the ARP Manager before the date of the relevant Insolvency Event, no adjustment shall be made in accordance with paragraph 9.3.1. However, the Percentage Liability of each of the other Qualifying Insurers in relation to Defence Costs and any associated costs and/or expenses incurred by each of the other Qualifying Insurers in respect of each ARP Policy on or after the date of the relevant Insolvency Event may be recalculated by the ARP Manager (in its absolute discretion) in accordance with the formula set out in paragraph 3.7 but excluding the Relevant Premium Income of the Qualifying Insurer or Run-off Insurer which is the subject of the Insolvency Event; and 9.3.3 the Percentage Liability of each of the other Qualifying Insurers in respect of each ARP Policy and any arrangements made pursuant to paragraph 2.8 in force immediately prior to the date of the relevant Insolvency Event shall, with effect from the date of the relevant Insolvency Event, for the purposes of any claim first made, or arising from circumstances first notified to the ARP Manager, on or after the date of the relevant Insolvency Event, equal their respective Percentage Participation on that date after adjustment (if applicable) in accordance with paragraph 9.3.1; and 9.3.4 the Percentage Liability of the Qualifying Insurer or Run-off Insurer in question in respect of and each other Qualifying Insurer shall remain the unexpired part of same as it was immediately prior to the relevant Indemnity Period shall equal zeroInsolvency Event. 9.4 Without prejudice to paragraph 3.9 the ARP Manager may, in its absolute discretion, at any time during or after the end of any Indemnity Period adjust the Initial Participation, the Percentage Participation and/or the Percentage Liability of each Qualifying Insurer prospectively or retrospectively in the light of information relating to the Relevant Premium Income of one or more Qualifying Insurers obtained or received by the ARP Manager which indicates that that: 9.4.1 the Relevant Premium Income of any such Qualifying Insurers Insurer is greater than that previously declared to the ARP ManagerManager pursuant to paragraphs 3.1 and 3.4 of this Schedule; or 9.4.2 the declaration of Relevant Premium Income made by any such Qualifying Insurer pursuant to paragraphs 3.1 and 3.4 of this Schedule understates the premium (including any risk premium in respect of the ARP and all levies and charges relating to a Policy) due from Firms to the Qualifying Insurer (excluding any amount in respect of Insurance Premium Tax), whether or not actually received by that Qualifying Insurer, in respect of each Policy incepting in the period 1 February 2011 to 31 January 2012 to the extent that such premium relates to cover required in accordance with the Minimum Terms for the Policy Period applicable to the Policy. 9.5 The ARP Manager shall notify in writing: 9.5.1 each Qualifying Insurer of its revised Percentage Participation; and 9.5.2 each ARP Firm of the revised Percentage Participations of each of the Qualifying Insurers, by no later than 10 business days following any adjustment being made in accordance with any of the provisions of this paragraph 9.

Adjustments to Percentage Participation and Percentage Liability. 9.1 If any Qualifying Insurer becomes a Run-off Insurer during any Indemnity Period (but not thereafter) then: 9.1.1 the Percentage Participation of each of the other Qualifying Insurers in respect of the unexpired part of the relevant Indemnity Period shall be recalculated in accordance with the formula set out in paragraph 3.7 but excluding the Relevant Premium Income of the Run-off Insurer in question; and 9.1.2 the Percentage Participation of the Run-off Insurer in question in respect of the unexpired part of the relevant Indemnity Period shall equal zero. 9.2 The Percentage Participation adjusted under paragraph 9.1 shall apply from the date on which the Run-off Insurer in question became a Run-off Insurer. 9.3 If at any time after the start of any Indemnity Period any Qualifying Insurer or Run-off Insurer which is or was a participant in the ARP during that Indemnity Period is the subject of an Insolvency Event, then: 9.3.1 in the case of an insurer which was a Qualifying Insurer immediately prior to the Insolvency Event, paragraph 9.1 shall apply; and 9.3.2 for the purposes of any claim first made, or arising from circumstances first notified to the ARP Manager before the date of the relevant Insolvency Event, no adjustment shall be made in accordance with paragraph 9.3.1. However, the Percentage Liability of each of the other Qualifying Insurers in relation to Defence Costs and any associated costs and/or expenses incurred by each of the other Qualifying Insurers in respect of each ARP Policy on or after the date of the relevant Insolvency Event may be recalculated by the ARP Manager (in its absolute discretion) in accordance with the formula set out in paragraph 3.7 but excluding the Relevant Premium Income of the Qualifying Insurer or Run-off Insurer which is the subject of the Insolvency Event; and 9.3.3 the Percentage Liability of each of the other Qualifying Insurers in respect of each ARP Policy and any arrangements made pursuant to paragraph 2.8 in force immediately prior to the date of the relevant Insolvency Event shall, with effect from the date of the relevant Insolvency Event, for the purposes of any claim first made, or arising from circumstances first notified to the ARP Manager, on or after the date of the relevant Insolvency Event, equal their respective Percentage Participation on that date after adjustment (if applicable) in accordance with paragraph 9.3.1; and 9.3.4 the Percentage Liability of the Qualifying Insurer or Run-off Insurer in question in respect of and each other Qualifying Insurer shall remain the unexpired part of same as it was immediately prior to the relevant Indemnity Period shall equal zeroInsolvency Event. 9.4 Without prejudice to paragraph 3.9 the ARP Manager may, in its absolute discretion, at any time during or after the end of any Indemnity Period adjust the Initial Participation, the Percentage Participation and/or the Percentage Liability of each Qualifying Insurer prospectively or retrospectively in the light of information relating to the Relevant Premium Income of one or more Qualifying Insurers obtained or received by the ARP Manager which indicates that that: 9.4.1 the Relevant Premium Income of any such Qualifying Insurers Insurer is greater than that previously declared to the ARP ManagerManager pursuant to paragraphs 3.1 and 3.4 of this Schedule; or 9.4.2 the declaration of Relevant Premium Income made by any such Qualifying Insurer pursuant to paragraphs 3.1 and 3.4 of this Schedule understates the premium (including any risk premium in respect of the ARP and all levies and charges relating to a Policy) due from Firms to the Qualifying Insurer (excluding any amount in respect of Insurance Premium Tax), whether or not actually received by that Qualifying Insurer, in respect of each Policy incepting in the period 1 February 20112012 to 31 January 20122013 to the extent that such premium relates to cover required in accordance with the Minimum Terms for the Policy Period applicable to the Policy. 9.5 The ARP Manager shall notify in writing: 9.5.1 each Qualifying Insurer of its revised Percentage Participation; and 9.5.2 each ARP Firm of the revised Percentage Participations of each of the Qualifying Insurers, by no later than 10 business days following any adjustment being made in accordance with any of the provisions of this paragraph 9.

Adjustments to Percentage Participation and Percentage Liability. 9.1 If any Qualifying Insurer becomes a Run-off Insurer during any Indemnity Period (but not thereafter) then: 9.1.1 the Percentage Participation of each of the other Qualifying Insurers in respect of the unexpired part of the relevant Indemnity Period shall be recalculated in accordance with the formula set out in paragraph 3.7 but excluding the Relevant Premium Income of the Run-off Insurer in question; and 9.1.2 the Percentage Participation of the Run-off Insurer in question in respect of the unexpired part of the relevant Indemnity Period shall equal zero. 9.2 The Percentage Participation adjusted under paragraph 9.1 shall apply from the date on which the Run-off Insurer in question became a Run-off Insurer. 9.3 If at any time after the start of during any Indemnity Period (but not thereafter) any Qualifying Insurer or Run-off Insurer which is or was a participant in the ARP during that Indemnity Period is the subject of an Insolvency Event, then: 9.3.1 in the case of an insurer which was a Qualifying Insurer immediately prior to the Insolvency Event, paragraph 9.1 shall apply; and 9.3.2 for the purposes of any claim first made, or arising from circumstances first notified to the ARP Manager before the date of the relevant Insolvency Event, no adjustment shall be made in accordance with paragraph 9.3.1. However, the Percentage Liability of each of the other Qualifying Insurers in relation to Defence Costs and any associated costs and/or expenses incurred by each of the other Qualifying Insurers in respect of each ARP Policy on or after the date of the relevant Insolvency Event may be recalculated by the ARP Manager (in its absolute discretion) in accordance with the formula set out in paragraph 3.7 but excluding the Relevant Premium Income of the Qualifying Insurer or Run-off Insurer which is the subject of the Insolvency Event; and 9.3.3 the Percentage Liability of each of the other Qualifying Insurers in respect of each ARP Policy and any arrangements made pursuant to paragraph 2.8 in force immediately prior to the date of the relevant Insolvency Event shall, with effect from the date of the relevant Insolvency Event, for the purposes of any claim first made, or arising from circumstances first notified to the ARP Manager, on or after the date of the relevant Insolvency Event, equal their respective Percentage Participation on that date after adjustment (if applicable) in accordance with paragraph 9.3.1; and 9.3.4 9.3.3 the Percentage Liability of the Qualifying Insurer or Run-off Insurer in question in respect of the unexpired part of the relevant Indemnity Period shall equal zero. 9.4 Without prejudice to paragraph 3.9 the ARP Manager may, in its absolute discretion, at any time time, during or after the end of any Indemnity Period adjust the Initial Participation, the Percentage Participation and/or the Percentage Liability of each Qualifying Insurer prospectively or retrospectively in the light of information relating to the Relevant Premium Income of one or more Qualifying Insurers obtained or received by the ARP Manager which indicates that the Relevant Premium Income of such Qualifying Insurers is greater than that previously declared to the ARP Manager. 9.5 The ARP Manager shall notify in writing: 9.5.1 each Qualifying Insurer of its revised Percentage Participation; and 9.5.2 each ARP Firm of the revised Percentage Participations of each of the Qualifying Insurers, by no later than 10 business days following any adjustment being made in accordance with any of the provisions of this paragraph 9.

Adjustments to Percentage Participation and Percentage Liability. 9.1 If any Qualifying Insurer becomes a Run-off Insurer during any Indemnity Period (but not thereafter) then: 9.1.1 the Percentage Participation of each of the other Qualifying Insurers in respect of the unexpired part of the relevant Indemnity Period shall be recalculated in accordance with the formula set out in paragraph 3.7 3.6 but excluding the Relevant Premium Income of the Run-off Insurer in question; and 9.1.2 the Percentage Participation of the Run-off Insurer in question in respect of the unexpired part of the relevant Indemnity Period shall equal zero. 9.2 The Percentage Participation adjusted under paragraph 9.1 shall apply from the date on which the Run-off Insurer in question became a Run-off Insurer. 9.3 If at any time after the start of during any Indemnity Period (but not thereafter) any Qualifying Insurer or Run-off Insurer which is or was a participant in the ARP during that Indemnity Period is the subject of an Insolvency Event, then: 9.3.1 in the case of an insurer which was a Qualifying Insurer immediately prior to the Insolvency Event, paragraph 9.1 shall apply; and 9.3.2 for the purposes of any claim first made, or arising from circumstances first notified to the ARP Manager before the date of the relevant Insolvency Event, no adjustment shall be made in accordance with paragraph 9.3.1. However, the Percentage Liability of each of the other Qualifying Insurers in relation to Defence Costs and any associated costs and/or expenses incurred by each of the other Qualifying Insurers in respect of each ARP Policy on or after the date of the relevant Insolvency Event may be recalculated by the ARP Manager (in its absolute discretion) in accordance with the formula set out in paragraph 3.7 but excluding the Relevant Premium Income of the Qualifying Insurer or Run-off Insurer which is the subject of the Insolvency Event; and 9.3.3 the Percentage Liability of each of the other Qualifying Insurers in respect of each ARP Policy and any arrangements made pursuant to paragraph 2.8 2.7 in force immediately prior to the date of the relevant Insolvency Event shall, with effect from the date of the relevant Insolvency Event, for the purposes of any claim first made, or arising from circumstances first notified to the ARP Manager, on or after the date of the relevant Insolvency Event, equal their respective Percentage Participation on that date after adjustment (if applicable) in accordance with paragraph 9.3.1; and 9.3.4 9.3.3 the Percentage Liability of the Qualifying Insurer or Run-off Insurer in question in respect of the unexpired part of the relevant Indemnity Period shall equal zero. 9.4 Without prejudice to paragraph 3.9 3.8 the ARP Manager may, in its absolute discretion, at any time time, during or after the end of any Indemnity Period adjust the Initial Participation, the Percentage Participation and/or the Percentage Liability of each Qualifying Insurer prospectively or retrospectively in the light of information relating to the Relevant Premium Income of one or more Qualifying Insurers obtained or received by the ARP Manager which indicates that the Relevant Premium Income of such Qualifying Insurers is greater than that previously declared to the ARP Manager. 9.5 The ARP Manager shall notify in writing: 9.5.1 each Qualifying Insurer of its revised Percentage Participation; and 9.5.2 each ARP Firm of the revised Percentage Participations of each of the Qualifying Insurers, by no later than 10 business days following any adjustment being made in accordance with any of the provisions of this paragraph 9.