Common use of Claims Expenses Clause in Contracts

Claims Expenses. The Reinsurer will pay its share of reasonable investigation and legal expenses incurred in adjudicating or litigating the claim in proportion to the liabilities it assumes hereunder. The Reinsurer will not be liable for any portion of any routine investigative or administrative expenses incidental to the settlement of claims (such as compensation of salaried employees) which are incurred by the Company; nor for any expenses incurred in connection with a dispute or contest arising out of conflicting claims of entitlement to policy proceeds or benefits that the Company admits are payable. In the event that the Reinsurer pays its share of the death benefit of a policy for which the Company is contesting the claim, the Reinsurer will not be liable for any subsequent expenses incurred by the Company.