Common use of CEDING FEE Clause in Contracts

CEDING FEE. The Reinsurer shall allow and pay the Company a ceding fee on each Policy equal to the Ceded Percentage of the sum of the following in respect of such Policy: (i) [***], and (ii) an [***] for [***]. For the first Underwriting Year, such allowance shall be equal to 2.33% of Net Written Premiums, and for each subsequent Underwriting Year the allowance applied to Net Written Premiums shall be equal to the [***] of (A) [***] (on a [***]) for the [***] to (B) [***] for the [***] ("[***]"). As soon as practicable after the end of each Underwriting Year, the Company shall determine the actual Operating Expense Ratio for such Underwriting Year, and the parties shall true up the differential between the aggregate amount paid based on the allowance rate and the amount due based on the actual Operating Expense Ratio. Where the amount for any element of Origination Expenses for any Program or Policy, as the case may be, cannot be determined with precision or certainty at the time of payment of allowance or payment of the ceding fee, the ceding fee shall be determined provisionally based on the Company's reasonable estimate of such amount, and as soon as practicable after the actual amount becomes known, the parties shall true up the difference. The Reinsurer hereby guarantees that the Company will receive such ceding fee regardless of any events, losses or developments for the term of this Agreement. The Company shall allow return ceding fees on return premiums at the same rates. The Reinsurer shall be credited with its Ceded Percentage of ceding commissions, if any, earned by the Company on Inuring Reinsurance.

CEDING FEE. The Reinsurer shall allow and pay the Company a ceding fee on each Policy equal to the Ceded Percentage of the sum of the following in respect of such Policy: (i) [***], and (ii) an [***] for [***]. For the first Underwriting Year, such allowance shall be equal to 2.33[***]% of Net Written PremiumsPremium, and for each subsequent Underwriting Year the allowance applied to Net Written Premiums Premium shall be equal to the [***] ratio of (A) [***] (on a [***]) for the [***] to (B) [***] for the [***] ("[***]"). As soon as practicable after the end of each Underwriting Year, the Company shall determine the actual Operating Non- Origination Expense Ratio for such Underwriting YearYear , and the parties shall true up the differential between the aggregate amount paid based on the allowance rate and the amount due based on the actual Operating Non-Origination Expense Ratio. Where the amount for any element of Origination Expenses for any Program or Policy, as the case may be, cannot be determined with precision or certainty at the time of payment of allowance or payment of the ceding fee, the ceding fee shall be determined provisionally based on the Company's reasonable estimate of such amount, and as soon as practicable after the actual amount becomes known, the parties shall true up the difference. The Reinsurer hereby guarantees that the Company will receive such ceding fee regardless of any events, losses or developments for the term of this Agreement. The Company shall allow return ceding fees on return premiums at the same rates. The Reinsurer shall be credited with its the Ceded Percentage of ceding commissions, if any, earned by the Company on Inuring Reinsurance.