Any Late Reported Risks Clause Samples
The 'Any Late Reported Risks' clause defines how risks that are reported after a specified deadline are handled within an agreement. Typically, this clause outlines the procedures or consequences for failing to disclose risks in a timely manner, such as limiting the ability to claim compensation or shifting responsibility for those risks. Its core function is to encourage prompt risk reporting and to allocate responsibility for undisclosed or late-reported issues, thereby reducing uncertainty and potential disputes between parties.
Any Late Reported Risks. For the purposes of this Article IX, a "Late Reported Risk" is a risk reported to the Reinsurer more than two (2) years after its effective date. The Reinsurer will not automatically accept liability for any Late Reported Risks. The Ceding Company shall submit to the Reinsurer, for approval, reporting information about any Late Reported Risks it wishes to be ceded under this Agreement. The process for Late Reported Risks will be as follows:
(a) The Reinsurer will notify the Ceding Company, within a reasonable time period after submission of the reporting information about any Late Reported Risks, whether it is able to accept such risks based on criteria such as capacity.
(b) In the event the Reinsurer is able to accept such Late Reported Risks, the Ceding Company agrees to pay all unpaid Reinsurance Premiums on the next premium accounting statement upon the acceptance of the risk by the Reinsurer. The Reinsurer reserves the right to charge interest on such Reinsurance Premiums, accruing from their respective due dates to the date of payment, computed as described in Section XXII.P.
(c) If the Reinsurer is not able to accept such Late Reported Risks, such risks will not be covered by the terms of this Agreement and no liability will attach to the Reinsurer.