Common use of Basis of participation in the ARP Clause in Contracts

Basis of participation in the ARP. 3.1 The Insurer shall provide to the ARP Manager within 10 business days following the start of each Indemnity Period a declaration in the form set out in Part 1 of Schedule 4, providing a figure for the Relevant Premium Income of the Insurer on a best estimate basis. 3.2 In the event that the Insurer fails to provide a figure within the time limit in accordance with paragraph 3.1, the ARP Manager may in its absolute discretion make its own estimate of the relevant figure for the purposes of this paragraph 3. 3.3 The ARP Manager shall calculate in accordance with paragraph 3.7 the Initial Participation of the Insurer on the basis of the information provided in accordance with paragraph 3.1 or estimated in accordance with paragraph 3.2 and shall notify each Qualifying Insurer of its Initial Participation by no later than 20 business days after the start of the relevant Indemnity Period. 3.4 The Insurer shall provide a declaration of its Relevant Premium Income to the ARP Manager by no later than 28 February in each Indemnity Period in the form set out in Part 2 of Schedule 4, for the purpose of determining its Percentage Participation in the ARP for that Indemnity Period. 3.5 The ARP Manager shall calculate in accordance with paragraph 3.7 the Percentage Participation of the Insurer on the basis of the information provided in accordance with paragraph 3.4 and shall notify: 3.5.1 each Qualifying Insurer of its Percentage Participation; and 3.5.2 each ARP Firm of the Percentage Participations of each of the Qualifying Insurers to the extent that they exceed 0 per cent by no later than 10 business days following the date in the relevant Indemnity Period on which the ARP Manager receives the last of the declarations required under paragraph 3.4 (the Notification Date) from any Qualifying Insurer. 3.6 The Percentage Participation notified on the Notification Date shall be applicable in respect of all ARP Policies incepting in the relevant Indemnity Period and under any arrangements made pursuant to paragraph 2.7 in respect of that period both up to that date and thereafter, except to the extent that it may be adjusted from time to time in accordance with paragraph 9. 3.7 Each calculation made under this paragraph 3 shall be made in accordance with the formula: A X 100, where 3.1 or 3.4 or as estimated by the ARP Manager in accordance with paragraph 3.2 (as the case may require); Provided that the ARP Manager may, at its absolute discretion, round the percentage resulting from the above formula, up or down to not less than three decimal points. 3.8 Without prejudice to paragraph 9.4 the Insurer warrants and represents to the ARP Manager for itself (and as trustee for all Qualifying Insurers participating in the ARP in any relevant Indemnity Period) that: 3.8.1 the estimated Relevant Premium Income declared pursuant to paragraph 3.1 is its best estimate of its Relevant Premium Income; and 3.8.2 to the best of the knowledge information and belief of the Insurer the Relevant Premium Income declared pursuant to paragraph 3.4 does not materially understate the Relevant Premium Income as at the date of such declaration; and 3.8.3 it has taken all reasonable steps to verify the accuracy of the declarations of its Relevant Premium Income made pursuant to paragraphs 3.1 and 3.4 and that such declarations have been made in good faith. 3.9 In the event that the ARP Manager can establish that the Insurer is in breach of the provisions of paragraph 3.8 and that in consequence the Percentage Liability of the Insurer has been materially understated (that is to say understated by more than 0.1 per cent) then the Percentage Liability of the Insurer (but not the Percentage Participation) shall be adjusted to the level it would have been, but for any such breach, and the Percentage Liability of all other Qualifying Insurers shall be adjusted accordingly.

Basis of participation in the ARP. 3.1 The Insurer shall provide to the ARP Manager within 10 business days following the start of each Indemnity Period a declaration in the form set out in Part 1 of Schedule 4, providing a figure for the Relevant Premium Income of the Insurer on a best estimate basis. 3.2 In the event that the Insurer fails to provide a figure within the time limit in accordance with paragraph 3.1, the ARP Manager may in its absolute discretion make its own estimate of the relevant figure for the purposes of this paragraph 3. 3.3 The ARP Manager shall calculate in accordance with paragraph 3.7 the Initial Participation of the Insurer on the basis of the information provided in accordance with paragraph 3.1 or estimated in accordance with paragraph 3.2 and shall notify each Qualifying Insurer of its Initial Participation by no later than 20 business days after the start of the relevant Indemnity Period. 3.4 The Insurer shall provide a declaration of its Relevant Premium Income to the ARP Manager by no later than 28 February in each Indemnity Period in the form set out in Part 2 of Schedule 4, for the purpose of determining its Percentage Participation in the ARP for that Indemnity Period. 3.5 The ARP Manager shall calculate in accordance with paragraph 3.7 the Percentage Participation of the Insurer on the basis of the information provided in accordance with paragraph 3.4 and shall notify: 3.5.1 each Qualifying Insurer of its Percentage Participation; and 3.5.2 each ARP Firm of the Percentage Participations of each of the Qualifying Insurers to the extent that they exceed 0 per cent by no later than 10 business days following the date in the relevant Indemnity Period on which the ARP Manager receives the last of the declarations required under paragraph 3.4 (the Notification Date) from any Qualifying Insurer. 3.6 The Percentage Participation notified on the Notification Date shall be applicable in respect of all ARP Policies incepting in the relevant Indemnity Period and under any arrangements made pursuant to paragraph 2.7 in respect of that period both up to that date and thereafter, except to the extent that it may be adjusted from time to time in accordance with paragraph 9. 3.7 Each calculation made under this paragraph 3 shall be made in accordance with the formula: A X 100, wherewhere A = the Relevant Premium Income as declared by the Insurer in accordance with paragraph 3.1 or 3.4 or as estimated by the ARP Manager in accordance with paragraph 3.2 (as the case may require); Provided that B = the ARP Manager may, at its absolute discretion, round the percentage resulting from the above formula, up or down to not less than three decimal points. 3.8 Without prejudice to paragraph 9.4 the Insurer warrants and represents to the ARP Manager for itself (and as trustee for all Qualifying Insurers participating in the ARP in any relevant Indemnity Period) that: 3.8.1 the estimated total Relevant Premium Income declared pursuant to paragraph 3.1 is its best estimate of its Relevant Premium Income; and 3.8.2 to the best of the knowledge information and belief of the Insurer the Relevant Premium Income declared pursuant to paragraph 3.4 does not materially understate the Relevant Premium Income as at the date of such declaration; and 3.8.3 it has taken by all reasonable steps to verify the accuracy of the declarations of its Relevant Premium Income made pursuant to paragraphs 3.1 and 3.4 and that such declarations have been made in good faith. 3.9 In the event that the ARP Manager can establish that the Insurer is in breach of the provisions of paragraph 3.8 and that in consequence the Percentage Liability of the Insurer has been materially understated (that is to say understated by more than 0.1 per cent) then the Percentage Liability of the Insurer (but not the Percentage Participation) shall be adjusted to the level it would have been, but for any such breach, and the Percentage Liability of all other Qualifying Insurers shall be adjusted accordingly.for that Indemnity Period;

Basis of participation in the ARP. 3.1 The Insurer shall provide to the ARP Manager within 10 business days following the start of each Indemnity Period a declaration in the form set out in Part 1 of Schedule 45, providing a figure for the Relevant Premium Income of the Insurer on a “best estimate estimate” basis. 3.2 In the event that the Insurer fails to provide a figure within the time limit in accordance with paragraph 3.1, the ARP Manager may in its absolute discretion make its own estimate of the relevant figure for the purposes of this paragraph 3. 3.3 The ARP Manager shall calculate in accordance with paragraph 3.7 the Initial Participation of the Insurer on the basis of the information provided in accordance with paragraph 3.1 or estimated in accordance with paragraph 3.2 and shall notify each Qualifying Insurer of its Initial Participation by no later than 20 business days after the start of the relevant Indemnity Period. 3.4 The Insurer shall provide a declaration of its Relevant Premium Income to the ARP Manager by no later than 28 February 31 January in each Indemnity Period in the form set out in Part 2 of Schedule 45, for the purpose of determining its Percentage Participation in the ARP for that Indemnity Period. 3.5 The ARP Manager shall calculate in accordance with paragraph 3.7 the Percentage Participation of the Insurer on the basis of the information provided in accordance with paragraph 3.4 and shall notify: 3.5.1 each Qualifying Insurer of its Percentage Participation; and 3.5.2 each ARP Firm of the Percentage Participations of each of the Qualifying Insurers to the extent that they exceed 0 per cent by no later than 10 business days following the date in the relevant Indemnity Period on which the ARP Manager receives the last of the declarations required under paragraph 3.4 (the “Notification Date”) from any Qualifying Insurer. 3.6 The Percentage Participation notified on the Notification Date shall be applicable in respect of all ARP Policies incepting in the relevant Indemnity Period and under any arrangements made pursuant to paragraph 2.7 in respect of that period both up to that date and thereafter, except to the extent that it may be adjusted from time to time in accordance with paragraph 9. 3.7 Each calculation made under this paragraph 3 shall be made in accordance with the formula: A X 100, where where A = the Relevant Premium Income as declared by the Insurer in accordance with paragraph 3.1 or 3.4 or as estimated by the ARP Manager in accordance with paragraph 3.2 (as the case may require); Provided that the ARP Manager may, at its absolute discretion, round the percentage resulting from the above formula, up or down to not less than three decimal points. 3.8 Without prejudice to paragraph 9.4 the Insurer warrants and represents to the ARP Manager for itself (and as trustee for all Qualifying Insurers participating in the ARP in any relevant Indemnity Period) that: 3.8.1 the estimated Relevant Premium Income declared pursuant to paragraph 3.1 is its best estimate of its Relevant Premium Income; and 3.8.2 to the best of the knowledge information and belief of the Insurer the Relevant Premium Income declared pursuant to paragraph 3.4 does not materially understate the Relevant Premium Income as at the date of such declaration; and 3.8.3 it has taken all reasonable steps to verify the accuracy of the declarations of its Relevant Premium Income made pursuant to paragraphs 3.1 and 3.4 and that such declarations have been made in good faith. 3.9 In the event that the ARP Manager can establish that the Insurer is in breach of the provisions of paragraph 3.8 and that in consequence the Percentage Liability of the Insurer has been materially understated (that is to say understated by more than 0.1 per cent) then the Percentage Liability of the Insurer (but not the Percentage Participation) shall be adjusted to the level it would have been, but for any such breach, and the Percentage Liability of all other Qualifying Insurers shall be adjusted accordingly.paragraph

Basis of participation in the ARP. 3.1 The Insurer shall provide to the ARP Manager within 10 business days following the start of each Indemnity Period a declaration in the form set out in Part 1 of Schedule 4, providing a figure for the Relevant Premium Income of the Insurer on a best estimate basis. 3.2 In the event that the Insurer fails to provide a figure within the time limit in accordance with paragraph 3.1, the ARP Manager may in its absolute discretion make its own estimate of the relevant figure for the purposes of this paragraph 3. 3.3 The ARP Manager shall calculate in accordance with paragraph 3.7 the Initial Participation of the Insurer on the basis of the information provided in accordance with paragraph 3.1 or estimated in accordance with paragraph 3.2 and shall notify each Qualifying Insurer of its Initial Participation by no later than 20 business days after the start of the relevant Indemnity Period. 3.4 The Insurer shall provide a declaration of its Relevant Premium Income to the ARP Manager by no later than 28 February in each Indemnity Period in the form set out in Part 2 of Schedule 4, for the purpose of determining its Percentage Participation in the ARP for that Indemnity Period. 3.5 The ARP Manager shall calculate in accordance with paragraph 3.7 the Percentage Participation of the Insurer on the basis of the information provided in accordance with paragraph 3.4 and shall notify: 3.5.1 each Qualifying Insurer of its Percentage Participation; and 3.5.2 each ARP Firm of the Percentage Participations of each of the Qualifying Insurers to the extent that they exceed 0 per cent by no later than 10 business days following the date in the relevant Indemnity Period on which the ARP Manager receives the last of the declarations required under paragraph 3.4 (the Notification Date) from any Qualifying Insurer. 3.6 The Percentage Participation notified on the Notification Date shall be applicable in respect of all ARP Policies incepting in the relevant Indemnity Period and under any arrangements made pursuant to paragraph 2.7 in respect of that period both up to that date and thereafter, except to the extent that it may be adjusted from time to time in accordance with paragraph 9. 3.7 Each calculation made under this paragraph 3 shall be made in accordance with the formula: A X 100, where 3.1 or 3.4 or as estimated by the ARP Manager in accordance with paragraph 3.2 (as the case may require); Provided that the ARP Manager may, at its absolute discretion, round the percentage resulting from the above formula, up or down to not less than three decimal points. 3.8 Without prejudice to paragraph 9.4 the Insurer warrants and represents to the ARP Manager for itself (and as trustee for all Qualifying Insurers participating in the ARP in any relevant Indemnity Period) that: 3.8.1 the estimated Relevant Premium Income declared pursuant to paragraph 3.1 is its best estimate of its Relevant Premium Income; and 3.8.2 to the best of the knowledge information and belief of the Insurer the Relevant Premium Income declared pursuant to paragraph 3.4 does not materially understate the Relevant Premium Income as at the date of such declaration; and 3.8.3 it has taken all reasonable steps to verify the accuracy of the declarations of its Relevant Premium Income made pursuant to paragraphs 3.1 and 3.4 and that such declarations have been made in good faith. 3.9 In the event that the ARP Manager can establish that the Insurer is in breach of the provisions of paragraph 3.8 and that in consequence the Percentage Liability of the Insurer has been materially understated (that is to say understated by more than 0.1 per cent) then the Percentage Liability of the Insurer (but not the Percentage Participation) shall be adjusted to the level it would have been, but for any such breach, and the Percentage Liability of all other Qualifying Insurers shall be adjusted accordingly.

Basis of participation in the ARP. 3.1 The Insurer shall provide to the ARP Manager within 10 business days following the start of each Indemnity Period a declaration in the form set out in Part 1 of Schedule 45, providing a figure for the Relevant Premium Income of the Insurer on a “best estimate estimate” basis. 3.2 In the event that the Insurer fails to provide a figure within the time limit in accordance with paragraph 3.1, the ARP Manager may in its absolute discretion make its own estimate of the relevant figure for the purposes of this paragraph 3. 3.3 The ARP Manager shall calculate in accordance with paragraph 3.7 the Initial Participation of the Insurer on the basis of the information provided in accordance with paragraph 3.1 or estimated in accordance with paragraph 3.2 and shall notify each Qualifying Insurer of its Initial Participation by no later than 20 business days after the start of the relevant Indemnity Period. 3.4 The Insurer shall provide a declaration of its Relevant Premium Income to the ARP Manager by no later than 28 February in each Indemnity Period in the form set out in Part 2 of Schedule 45, for the purpose of determining its Percentage Participation in the ARP for that Indemnity Period. 3.5 The ARP Manager shall calculate in accordance with paragraph 3.7 the Percentage Participation of the Insurer on the basis of the information provided in accordance with paragraph 3.4 and shall notify: 3.5.1 each Qualifying Insurer of its Percentage Participation; and 3.5.2 each ARP Firm of the Percentage Participations of each of the Qualifying Insurers to the extent that they exceed 0 per cent by no later than 10 business days following the date in the relevant Indemnity Period on which the ARP Manager receives the last of the declarations required under paragraph 3.4 (the “Notification Date”) from any Qualifying Insurer. 3.6 The Percentage Participation notified on the Notification Date shall be applicable in respect of all ARP Policies incepting in the relevant Indemnity Period and under any arrangements made pursuant to paragraph 2.7 in respect of that period both up to that date and thereafter, except to the extent that it may be adjusted from time to time in accordance with paragraph 9. 3.7 Each calculation made under this paragraph 3 shall be made in accordance with the formula: A X 100, where where A = the Relevant Premium Income as declared by the Insurer in accordance with paragraph 3.1 or 3.4 or as estimated by the ARP Manager in accordance with paragraph 3.2 (as the case may require); Provided that B = the ARP Manager may, at its absolute discretion, round the percentage resulting from the above formula, up or down to not less than three decimal points. 3.8 Without prejudice to paragraph 9.4 the Insurer warrants and represents to the ARP Manager for itself (and as trustee for all Qualifying Insurers participating in the ARP in any relevant Indemnity Period) that: 3.8.1 the estimated total Relevant Premium Income declared pursuant to paragraph 3.1 is its best estimate of its Relevant Premium Income; and 3.8.2 to the best of the knowledge information and belief of the Insurer the Relevant Premium Income declared pursuant to paragraph 3.4 does not materially understate the Relevant Premium Income as at the date of such declaration; and 3.8.3 it has taken by all reasonable steps to verify the accuracy of the declarations of its Relevant Premium Income made pursuant to paragraphs 3.1 and 3.4 and that such declarations have been made in good faith. 3.9 In the event that the ARP Manager can establish that the Insurer is in breach of the provisions of paragraph 3.8 and that in consequence the Percentage Liability of the Insurer has been materially understated (that is to say understated by more than 0.1 per cent) then the Percentage Liability of the Insurer (but not the Percentage Participation) shall be adjusted to the level it would have been, but for any such breach, and the Percentage Liability of all other Qualifying Insurers shall be adjusted accordingly.for that Indemnity Period;

Basis of participation in the ARP. ‌ 3.1 The Insurer shall provide to the ARP Manager within 10 business days following the start of each Indemnity Period a declaration in the form set out in Part 1 of Schedule 45, providing a figure for the Relevant Premium Income of the Insurer on a “best estimate basis.estimate” basis.‌ 3.2 In the event that the Insurer fails to provide a figure within the time limit in accordance with paragraph 3.1, the ARP Manager may in its absolute discretion make its own estimate of the relevant figure for the purposes of this paragraph 3.3.‌ 3.3 The ARP Manager shall calculate in accordance with paragraph 3.7 the Initial Participation of the Insurer on the basis of the information provided in accordance with paragraph 3.1 or estimated in accordance with paragraph 3.2 and shall notify each Qualifying Insurer of its Initial Participation by no later than 20 business days after the start of the relevant Indemnity Period. 3.4 The Insurer shall provide a declaration of its Relevant Premium Income to the ARP Manager by no later than 28 February in each Indemnity Period in the form set out in Part 2 of Schedule 45, for the purpose of determining its Percentage Participation in the ARP for that Indemnity Period.Period.‌ 3.5 The ARP Manager shall calculate in accordance with paragraph 3.7 the Percentage Participation of the Insurer on the basis of the information provided in accordance with paragraph 3.4 and shall notify:notify:‌ 3.5.1 each Qualifying Insurer of its Percentage Participation; and 3.5.2 each ARP Firm of the Percentage Participations of each of the Qualifying Insurers to the extent that they exceed 0 per cent by no later than 10 business days following the date in the relevant Indemnity Period on which the ARP Manager receives the last of the declarations required under paragraph 3.4 (the “Notification Date”) from any Qualifying Insurer. 3.6 The Percentage Participation notified on the Notification Date shall be applicable in respect of all ARP Policies incepting in the relevant Indemnity Period and under any arrangements made pursuant to paragraph 2.7 in respect of that period both up to that date and thereafter, except to the extent that it may be adjusted from time to time in accordance with paragraph 9. 3.7 Each calculation made under this paragraph 3 shall be made in accordance with the formula: formula:‌ A X 100, where where B A = the Relevant Premium Income as declared by the Insurer in accordance with paragraph 3.1 or 3.4 or as estimated by the ARP Manager in accordance with paragraph 3.2 (as the case may require); Provided that the ARP Manager may, at its absolute discretion, round the percentage resulting from the above formula, up or down to not less than three decimal points. 3.8 Without prejudice to paragraph 9.4 the Insurer warrants and represents to the ARP Manager for itself (and as trustee for all Qualifying Insurers participating in the ARP in any relevant Indemnity Period) that: 3.8.1 the estimated Relevant Premium Income declared pursuant to paragraph 3.1 is its best estimate of its Relevant Premium Income; and 3.8.2 to the best of the knowledge information and belief of the Insurer the Relevant Premium Income declared pursuant to paragraph 3.4 does not materially understate the Relevant Premium Income as at the date of such declaration; and 3.8.3 it has taken all reasonable steps to verify the accuracy of the declarations of its Relevant Premium Income made pursuant to paragraphs 3.1 and 3.4 and that such declarations have been made in good faith. 3.9 In the event that the ARP Manager can establish that the Insurer is in breach of the provisions of paragraph 3.8 and that in consequence the Percentage Liability of the Insurer has been materially understated (that is to say understated by more than 0.1 per cent) then the Percentage Liability of the Insurer (but not the Percentage Participation) shall be adjusted to the level it would have been, but for any such breach, and the Percentage Liability of all other Qualifying Insurers shall be adjusted accordingly.paragraph

Basis of participation in the ARP. 3.1 The Insurer shall provide to the ARP Manager within 10 business days following the start of ofby no later than 30 October in each Indemnity Period a declaration in the form set out in Part 1 of Schedule 4, providing a figure for the Relevant Premium Income of the Insurer on a best estimate basisbasis.for all Policies of Qualifying Insurance underwritten by the Insurer incepting on 1 October of that Indemnity Period (the Reference Indemnity Period). 3.2 In the event that the Insurer fails to provide a figure within the time limit in accordance with paragraph 3.1, the ARP Manager may in its absolute discretion make its own estimate of the relevant figure for the purposes of this paragraph 3. 3.3 The ARP Manager shall calculate in accordance with paragraph 3.7 the Initial Participation of the Insurer on the basis of the information provided in accordance with paragraph 3.1 or estimated in accordance with paragraph 3.2 and shall notify each Qualifying Insurer of its Initial Participation by no later than 20 business days after the start of the relevant Indemnity Period. 3.4 The Insurer shall provide a declaration of its Relevant Premium Income for all Policies of Qualifying Insurance underwritten by the Insurer incepting during the Reference Indemnity Period to the ARP Manager by no later than 28 February in each Indemnity Period in the form set out in Part 2 of Schedule 44,4. The Insurer shall provide the declaration on or after 1 October but by no later than 31 October in the Indemnity Period next following the Reference Indemnity Period, for the purpose of determining its Percentage Participation in the ARP for that Reference Indemnity Period. 3.5 The ARP Manager shall calculate in accordance with paragraph 3.7 the Percentage Participation of the Insurer on the basis of the information provided in accordance with paragraph 3.4 and shall notify: 3.5.1 each Qualifying Insurer of its Percentage Participation; and 3.5.2 each ARP Firm of the Percentage Participations of each of the Qualifying Insurers to the extent that they exceed 0 per cent by no later than 10 business days following 31 October in the Indemnity Period immediately following the Reference Indemnity Period, being the last date in the relevant Indemnity Period on which the ARP Manager receives the last of the declarations required under paragraph 3.4 (the Notification Date) from any Qualifying Insurer. 3.6 The Percentage Participation notified on the Notification Date shall be applicable in respect of all ARP Policies incepting in the relevant relevantReference Indemnity Period and under any arrangements made pursuant to paragraph 2.7 in respect of that period both up to that date and thereafter, except to the extent that it may be adjusted from time to time in accordance with paragraph 9. 3.7 Each calculation made under this paragraph 3 shall be made in accordance with the formula: A X 100, wherewhere A = the Relevant Premium Income as declared by the Insurer in accordance with paragraph 3.1 or 3.4 or as estimated by the ARP Manager in accordance with paragraph 3.2 (as the case may require); Provided that B = the ARP Manager may, at its absolute discretion, round the percentage resulting from the above formula, up or down to not less than three decimal points. 3.8 Without prejudice to paragraph 9.4 the Insurer warrants and represents to the ARP Manager for itself (and as trustee for all Qualifying Insurers participating in the ARP in any relevant Indemnity Period) that: 3.8.1 the estimated total Relevant Premium Income declared pursuant to paragraph 3.1 is its best estimate of its Relevant Premium Income; and 3.8.2 to the best of the knowledge information and belief of the Insurer the Relevant Premium Income declared pursuant to paragraph 3.4 does not materially understate the Relevant Premium Income as at the date of such declaration; and 3.8.3 it has taken by all reasonable steps to verify the accuracy of the declarations of its Relevant Premium Income made pursuant to paragraphs 3.1 and 3.4 and that such declarations have been made in good faith. 3.9 In the event that the ARP Manager can establish that the Insurer is in breach of the provisions of paragraph 3.8 and that in consequence the Percentage Liability of the Insurer has been materially understated (that is to say understated by more than 0.1 per cent) then the Percentage Liability of the Insurer (but not the Percentage Participation) shall be adjusted to the level it would have been, but for any such breach, and the Percentage Liability of all other Qualifying Insurers shall be adjusted accordingly.for that Indemnity Period;

Basis of participation in the ARP. 3.1 The Insurer shall provide to the ARP Manager within 10 business days following the start of each Indemnity Period a declaration in the form set out in Part 1 of Schedule 45, providing a figure for the Relevant Premium Income of the Insurer on a “best estimate estimate” basis. 3.2 In the event that the Insurer fails to provide a figure within the time limit in accordance with paragraph 3.1, the ARP Manager may in its absolute discretion make its own estimate of the relevant figure for the purposes of this paragraph 3. 3.3 The ARP Manager shall calculate in accordance with paragraph 3.7 3.6 the Initial Participation of the Insurer on the basis of the information provided in accordance with paragraph 3.1 or estimated in accordance with paragraph 3.2 and shall notify each Qualifying Insurer of its Initial Participation by no later than 20 business days after the start of the relevant Indemnity Period. 3.4 3.3 The Insurer shall provide a declaration of its Relevant Premium Income to the ARP Manager by no later than 28 February 31 January in each Indemnity Period in the form set out in Part 2 of Schedule 45, for the purpose of determining its Percentage Participation in the ARP for that Indemnity Period. 3.5 3.4 The ARP Manager shall calculate in accordance with paragraph 3.7 3.6 the Percentage Participation of the Insurer on the basis of the information provided in accordance with paragraph 3.4 3.3 and shall notify: 3.5.1 3.4.1 each Qualifying Insurer of its Percentage Participation; and 3.5.2 3.4.2 each ARP Firm of the Percentage Participations of each of the Qualifying Insurers to the extent that they exceed 0 per cent by no later than 10 business days following the date in the relevant Indemnity Period on which the ARP Manager receives the last of the declarations required under paragraph 3.4 3.3 (the “Notification Date”) from any Qualifying Insurer. 3.6 3.5 The Percentage Participation notified on the Notification Date shall be applicable in respect of all ARP Policies incepting in the relevant Indemnity Period and under any arrangements made pursuant to paragraph 2.7 in respect of that period both up to that date and thereafter, except to the extent that it may be adjusted from time to time in accordance with paragraph 9. 3.7 3.6 Each calculation made under this paragraph 3 shall be made in accordance with the formula: A X 100, where 3.1 or 3.4 or where A = the Relevant Premium Income as estimated declared by the ARP Manager Insurer in accordance with paragraph 3.2 3.1 or 3.3 (as the case may require); Provided that B = the ARP Manager may, at its absolute discretion, round the percentage resulting from the above formula, up or down to not less than three decimal points. 3.8 Without prejudice to paragraph 9.4 the Insurer warrants and represents to the ARP Manager for itself (and as trustee for all Qualifying Insurers participating in the ARP in any relevant Indemnity Period) that: 3.8.1 the estimated total Relevant Premium Income declared pursuant to paragraph 3.1 is its best estimate of its Relevant Premium Income; and 3.8.2 to the best of the knowledge information and belief of the Insurer the Relevant Premium Income declared pursuant to paragraph 3.4 does not materially understate the Relevant Premium Income as at the date of such declaration; and 3.8.3 it has taken by all reasonable steps to verify the accuracy of the declarations of its Relevant Premium Income made pursuant to paragraphs 3.1 and 3.4 and that such declarations have been made in good faith. 3.9 In the event that the ARP Manager can establish that the Insurer is in breach of the provisions of paragraph 3.8 and that in consequence the Percentage Liability of the Insurer has been materially understated (that is to say understated by more than 0.1 per cent) then the Percentage Liability of the Insurer (but not the Percentage Participation) shall be adjusted to the level it would have been, but for any such breach, and the Percentage Liability of all other Qualifying Insurers shall be adjusted accordingly.for that Indemnity Period;

Basis of participation in the ARP. ‌ 3.1 The Insurer shall provide to the ARP Manager within 10 business days following the start of each Indemnity Period a declaration in the form set out in Part 1 of Schedule 4, providing a figure for the Relevant Premium Income of the Insurer on a best estimate basis.basis.‌ 3.2 In the event that the Insurer fails to provide a figure within the time limit in accordance with paragraph 3.1, the ARP Manager may in its absolute discretion make its own estimate of the relevant figure for the purposes of this paragraph 3.3.‌ 3.3 The ARP Manager shall calculate in accordance with paragraph 3.7 the Initial Participation of the Insurer on the basis of the information provided in accordance with paragraph 3.1 or estimated in accordance with paragraph 3.2 and shall notify each Qualifying Insurer of its Initial Participation by no later than 20 business days after the start of the relevant Indemnity Period. 3.4 The Insurer shall provide a declaration of its Relevant Premium Income to the ARP Manager by no later than 28 February in each Indemnity Period in the form set out in Part 2 of Schedule 4, for the purpose of determining its Percentage Participation in the ARP for that Indemnity Period.Period.‌ 3.5 The ARP Manager shall calculate in accordance with paragraph 3.7 the Percentage Participation of the Insurer on the basis of the information provided in accordance with paragraph 3.4 and shall notify:notify:‌ 3.5.1 each Qualifying Insurer of its Percentage Participation; and 3.5.2 each ARP Firm of the Percentage Participations of each of the Qualifying Insurers to the extent that they exceed 0 per cent by no later than 10 business days following the date in the relevant Indemnity Period on which the ARP Manager receives the last of the declarations required under paragraph 3.4 (the Notification Date) from any Qualifying Insurer. 3.6 The Percentage Participation notified on the Notification Date shall be applicable in respect of all ARP Policies incepting in the relevant Indemnity Period and under any arrangements made pursuant to paragraph 2.7 in respect of that period both up to that date and thereafter, except to the extent that it may be adjusted from time to time in accordance with paragraph 9. 3.7 Each calculation made under this paragraph 3 shall be made in accordance with the formula: formula:‌ A X 100, where where B A = the Relevant Premium Income as declared by the Insurer in accordance with paragraph 3.1 or 3.4 or as estimated by the ARP Manager in accordance with paragraph 3.2 (as the case may require); Provided that B = the ARP Manager may, at its absolute discretion, round the percentage resulting from the above formula, up or down to not less than three decimal points. 3.8 Without prejudice to paragraph 9.4 the Insurer warrants and represents to the ARP Manager for itself (and as trustee for all Qualifying Insurers participating in the ARP in any relevant Indemnity Period) that: 3.8.1 the estimated total Relevant Premium Income declared pursuant to paragraph 3.1 is its best estimate of its Relevant Premium Income; and 3.8.2 to the best of the knowledge information and belief of the Insurer the Relevant Premium Income declared pursuant to paragraph 3.4 does not materially understate the Relevant Premium Income as at the date of such declaration; and 3.8.3 it has taken by all reasonable steps to verify the accuracy of the declarations of its Relevant Premium Income made pursuant to paragraphs 3.1 and 3.4 and that such declarations have been made in good faith. 3.9 In the event that the ARP Manager can establish that the Insurer is in breach of the provisions of paragraph 3.8 and that in consequence the Percentage Liability of the Insurer has been materially understated (that is to say understated by more than 0.1 per cent) then the Percentage Liability of the Insurer (but not the Percentage Participation) shall be adjusted to the level it would have been, but for any such breach, and the Percentage Liability of all other Qualifying Insurers shall be adjusted accordingly.for that Indemnity Period;

Basis of participation in the ARP. 3.1 The Insurer shall provide to the ARP Manager within 10 business days following the start of each Indemnity Period a declaration in the form set out in Part 1 of Schedule 45, providing a figure for the Relevant Premium Income of the Insurer on a best estimate basis. 3.2 In the event that the Insurer fails to provide a figure within the time limit in accordance with paragraph 3.1, the ARP Manager may in its absolute discretion make its own estimate of the relevant figure for the purposes of this paragraph 3. 3.3 The ARP Manager shall calculate in accordance with paragraph 3.7 the Initial Participation of the Insurer on the basis of the information provided in accordance with paragraph 3.1 or estimated in accordance with paragraph 3.2 and shall notify each Qualifying Insurer of its Initial Participation by no later than 20 business days after the start of the relevant Indemnity Period. 3.4 The Insurer shall provide a declaration of its Relevant Premium Income to the ARP Manager by no later than 28 February in each Indemnity Period in the form set out in Part 2 of Schedule 45, for the purpose of determining its Percentage Participation in the ARP for that Indemnity Period. 3.5 The ARP Manager shall calculate in accordance with paragraph 3.7 the Percentage Participation of the Insurer on the basis of the information provided in accordance with paragraph 3.4 and shall notify: 3.5.1 each Qualifying Insurer of its Percentage Participation; and 3.5.2 each ARP Firm of the Percentage Participations of each of the Qualifying Insurers to the extent that they exceed 0 per cent by no later than 10 business days following the date in the relevant Indemnity Period on which the ARP Manager receives the last of the declarations required under paragraph 3.4 (the Notification Date) from any Qualifying Insurer. 3.6 The Percentage Participation notified on the Notification Date shall be applicable in respect of all ARP Policies incepting in the relevant Indemnity Period and under any arrangements made pursuant to paragraph 2.7 in respect of that period both up to that date and thereafter, except to the extent that it may be adjusted from time to time in accordance with paragraph 9. 3.7 Each calculation made under this paragraph 3 shall be made in accordance with the formula: A X 100, where where A = the Relevant Premium Income as declared by the Insurer in accordance with paragraph 3.1 or 3.4 or as estimated by the ARP Manager in accordance with paragraph 3.2 (as the case may require); Provided that B = the ARP Manager may, at its absolute discretion, round the percentage resulting from the above formula, up or down to not less than three decimal points. 3.8 Without prejudice to paragraph 9.4 the Insurer warrants and represents to the ARP Manager for itself (and as trustee for all Qualifying Insurers participating in the ARP in any relevant Indemnity Period) that: 3.8.1 the estimated total Relevant Premium Income declared pursuant to paragraph 3.1 is its best estimate of its Relevant Premium Income; and 3.8.2 to the best of the knowledge information and belief of the Insurer the Relevant Premium Income declared pursuant to paragraph 3.4 does not materially understate the Relevant Premium Income as at the date of such declaration; and 3.8.3 it has taken by all reasonable steps to verify the accuracy of the declarations of its Relevant Premium Income made pursuant to paragraphs 3.1 and 3.4 and that such declarations have been made in good faith. 3.9 In the event that the ARP Manager can establish that the Insurer is in breach of the provisions of paragraph 3.8 and that in consequence the Percentage Liability of the Insurer has been materially understated (that is to say understated by more than 0.1 per cent) then the Percentage Liability of the Insurer (but not the Percentage Participation) shall be adjusted to the level it would have been, but for any such breach, and the Percentage Liability of all other Qualifying Insurers shall be adjusted accordingly.for that Indemnity Period;

Basis of participation in the ARP. 3.1 The Insurer shall provide to the ARP Manager within 10 business days following the start of each Indemnity Period a declaration in the form set out in Part 1 of Schedule 4, providing a figure for the Relevant Premium Income of the Insurer on a best estimate basis. 3.2 In the event that the Insurer fails to provide a figure within the time limit in accordance with paragraph 3.1, the ARP Manager may in its absolute discretion make its own estimate of the relevant figure for the purposes of this paragraph 3. 3.3 The ARP Manager shall calculate in accordance with paragraph 3.7 the Initial Participation of the Insurer on the basis of the information provided in accordance with paragraph 3.1 or estimated in accordance with paragraph 3.2 and shall notify each Qualifying Insurer of its Initial Participation by no later than 20 business days after the start of the relevant Indemnity Period. 3.4 The Insurer shall provide a declaration of its Relevant Premium Income to the ARP Manager by no later than 28 February in each Indemnity Period in the form set out in Part 2 of Schedule 4, for the purpose of determining its Percentage Participation in the ARP for that Indemnity Period. 3.5 The ARP Manager shall calculate in accordance with paragraph 3.7 the Percentage Participation of the Insurer on the basis of the information provided in accordance with paragraph 3.4 and shall notify: 3.5.1 each Qualifying Insurer of its Percentage Participation; and 3.5.2 each ARP Firm of the Percentage Participations of each of the Qualifying Insurers to the extent that they exceed 0 per cent by no later than 10 business days following the date in the relevant Indemnity Period on which the ARP Manager receives the last of the declarations required under paragraph 3.4 (the Notification Date) from any Qualifying Insurer. 3.6 The Percentage Participation notified on the Notification Date shall be applicable in respect of all ARP Policies incepting in the relevant Indemnity Period and under any arrangements made pursuant to paragraph 2.7 in respect of that period both up to that date and thereafter, except to the extent that it may be adjusted from time to time in accordance with paragraph 9. 3.7 Each calculation made under this paragraph 3 shall be made in accordance with the formula: A X 100, wherewhere A = the Relevant Premium Income as declared by the Insurer in accordance with paragraph 3.1 or 3.4 or as estimated by the ARP Manager in accordance with paragraph 3.2 (as the case may require); Provided that B = the ARP Manager may, at its absolute discretion, round the percentage resulting from the above formula, up or down to not less than three decimal points. 3.8 Without prejudice to paragraph 9.4 the Insurer warrants and represents to the ARP Manager for itself (and as trustee for all Qualifying Insurers participating in the ARP in any relevant Indemnity Period) that: 3.8.1 the estimated total Relevant Premium Income declared pursuant to paragraph 3.1 is its best estimate of its Relevant Premium Incomeby all Qualifying Insurers for that Indemnity Period; and 3.8.2 to the best of the knowledge information and belief of the Insurer the Relevant Premium Income declared pursuant means the Premium Payable to paragraph 3.4 does not materially understate a Qualifying Insurer in respect of Policies (excluding ARP Policies) incepting in the Relevant Premium Income period 1 October 20092010 to 31 January 2010,2011, to the extent that such premium relates to cover required in accordance with the Minimum Terms for that Indemnity Period, as at the date of such declarationcalculated in accordance with generally recognised professional indemnity underwriting methodologies; and 3.8.3 it has taken all reasonable steps to verify the accuracy of the declarations of its Relevant Premium Income made pursuant to paragraphs 3.1 and 3.4 and that such declarations have been made in good faith. 3.9 In the event that the ARP Manager can establish that the Insurer is in breach of the provisions of paragraph 3.8 and that in consequence the Percentage Liability of the Insurer has been materially understated (that is to say understated by more than 0.1 per cent) then the Percentage Liability of the Insurer (but not the Percentage Participation) shall be adjusted to the level it would have been, but for any such breach, and the Percentage Liability of all other Qualifying Insurers shall be adjusted accordingly.