Common use of BALANCES IN DEFAULT Clause in Contracts

BALANCES IN DEFAULT. The Reinsurer will have the right to terminate the reinsurance for new business and all policies having reinsurance premiums in arrears, by giving ninety (90) days written notice of its intention to the Ceding Company. If all reinsurance premiums in arrears, including any that become in arrears during the ninety (90) day notice period, are not paid before the expiration of the notice period, the Reinsurer will be relieved of all liability under those policies as of the last date to which premiums have been paid for each policy. Reinsurance on policies on which reinsurance premiums subsequently fall due will automatically terminate as of the last date to which premiums have been paid for each policy, unless reinsurance premiums on those policies are paid on or before their due date pursuant to section 4 above. The first day of this ninety (90) day notice of termination, resulting from default as described in section 4 of this Article, will be the day the notice is received in the mail by the Ceding Company, or if the mail is not used, the day it is delivered to the Ceding Company. If all balances in default are received within the ninety (90) day time period, the Agreement will remain in effect. The interest payable on balances in default is stipulated as shown in Schedule I.

BALANCES IN DEFAULT. The Reinsurer will have the right to terminate the reinsurance for new business and all policies having reinsurance premiums in arrears, by giving ninety (90) days written notice of its intention to the Ceding Company. If all reinsurance premiums in arrears, including any that become in arrears during the ninety (90) day notice period, are not paid before the expiration of the notice period, the Reinsurer will be relieved of all liability under those policies as of the last date to which premiums have been paid for each policy. Reinsurance on policies on which reinsurance premiums subsequently fall due will automatically terminate as of the last date to which premiums have been paid for each policy, unless reinsurance premiums on those policies are paid on or before their due date pursuant to section 4 above. The first day of this ninety (90) day notice of termination, resulting from default as described in section 4 paragraph four of this Article, will be the day the notice is received in the mail by the Ceding Company, or if the mail is not used, the day it is delivered to the Ceding Company. If all balances in default are received within the ninety (90) day time period, the Agreement will remain in effect. The interest payable on balances in default is stipulated as shown in Schedule I.