Common use of Commutation Clause in Contracts

Commutation. A. The Reinsurer may cancel and commute this Contract at any time with 90 calendar days advance written notice by certified mail, but only in the event(s) of: 1. Payment by the Reinsurer of the overall aggregate limit; or 2. Failure by the Company to pay any amounts when due under this Contract, if such default is not cured within 30 calendar days following receipt by certified mail by the Company of notice of such default from the subscribing reinsurer. B. At any time after expiration or termination of this Contract the Company may commute this Contract with 90 calendar days advance written notice by certified mail, but only if the Notional Experience Account balance is greater than zero. C. As provided within the SPECIAL TERMINATION ARTICLE, upon the Company’s termination of a subscribing reinsurer’s share in the Contract upon the happening of any one of the enumerated circumstances, the Company has the option, but not the obligation, to commute this Contract with written notice. D. Upon Commutation by the Reinsurer in accordance with paragraph A, above, or Commutation by the Company in accordance with paragraph B, above, the following shall occur: 1. The Notional Experience Account balance shall be calculated as stipulated in the NOTIONAL EXPERIENCE ACCOUNT ARTICLE, as of the date of commutation. 2. The “Commutation Settlement Amount” will be equal to the amount under paragraph D.1, above, and the Reinsurer shall remit to the Company this Commutation Settlement Amount within 5 U.S. business days following such calculation. 3. Upon receipt of the Commutation Settlement Amount, the Company shall provide the Reinsurer with a complete and final release of any further liability under this Contract, or so deemed; concurrently, the Company shall release any Letters of Credit provided by the Reinsurer under the UNAUTHORIZED REINSURANCE ARTICLE. In the event that any or all Letters of Credit have not been released within 5 business days of the receipt of the Commutation Settlement Amount, it is agreed that the Reinsurer can xxxx the Company at any time and the Company has to pay to the Reinsurer an annualized fee of 200 bps on the amount of any Letters of Credit not released 5 business days after the receipt of the Commutation Settlement Amount. E. Upon Commutation by the Company in accordance with paragraph C above and the SPECIAL TERMINATION ARTICLE, the Commutation Settlement Amount shall be the greater of the amount calculated in paragraph D or the net present value of outstanding ceded reserves including incurred but not reported losses. If the Reinsurer disputes the Commutation Settlement Amount established by the Company under this paragraph E, then such dispute shall be settled by a panel of three actuaries, one to be chosen by each party and the third by the two so chosen. If either party refuses or neglects to appoint an actuary within 30 days, the other party may appoint two actuaries. If the two actuaries fail to agree on the selection of a third actuary within 30 days of their appointment, each of them shall name two, of whom the other shall decline one and the decision shall be made by drawing lots. All the actuaries shall be Fellows of the Casualty Actuarial Society or members of the American Academy of Actuaries. All of the actuaries shall be independent of either party to this Contract. Each party shall bear the cost of their appointed actuary (or actuary appointed for them if they fail to make a timely appointment) and shall share the cost evenly of the third actuary. The settlement agreed upon by a majority of the panel of actuaries shall be final and binding on both parties and set forth in a sworn written document expressing their professional opinion that said value is fair for the complete mutual release of all liabilities in respect of such reserves.

Commutation. A. The Reinsurer may cancel and commute this Contract at any time with 90 calendar days advance written notice by certified mail, but only in the event(s) of: 1. Payment by the Reinsurer of the overall aggregate limit; or 2. Failure by the Company to pay any amounts when due under this Contract, if such default is not cured within 30 calendar days following receipt by certified mail by the Company of notice of such default from the subscribing reinsurer. B. At any time after expiration or termination of this Contract the Company may commute this Contract with 90 calendar days advance written notice by certified mail, but only if the Notional Experience Account balance is greater than zero. C. As provided within the SPECIAL TERMINATION ARTICLE, upon the Company’s termination of a subscribing reinsurer’s share in the Contract upon the happening of any one of the enumerated circumstances, the Company has the option, but not the obligation, to commute this Contract with written notice. D. Upon Commutation by the Reinsurer in accordance with paragraph A, above, or Commutation by the Company in accordance with paragraph B, above, the following shall occur: 1. The Notional Experience Account balance 8.1 This Agreement shall be calculated as stipulated in commuted effective December 31, 2005 (the NOTIONAL EXPERIENCE ACCOUNT ARTICLE"Commutation Date"), as of unless the date of commutation. 2parties agree otherwise. The “Commutation Settlement Amount” will be equal to the amount under paragraph D.1On or before April 30, above, and the Reinsurer shall remit to the Company this Commutation Settlement Amount within 5 U.S. business days following such calculation. 3. Upon receipt of the Commutation Settlement Amount2006, the Company shall provide to the Reinsurer Retrocessionaire a calculation of the Settlement Value (the final amount payable under this Agreement) along with a complete and final release of any further liability under this Contract, or so deemed; concurrently, report detailing the Company basis for its calculations (the "Settlement Report"). The Settlement Report shall release any Letters of Credit provided by the Reinsurer under the UNAUTHORIZED REINSURANCE ARTICLE. In the event that any or all Letters of Credit have not been released within 5 business days of the receipt of the Commutation Settlement Amount, it is agreed that the Reinsurer can xxxx the Company at any time and the Company has to pay to the Reinsurer an annualized fee of 200 bps on the amount of any Letters of Credit not released 5 business days after the receipt of the Commutation Settlement Amount. E. Upon Commutation be prepared by the Company in accordance a manner which is consistent with paragraph C above and the SPECIAL TERMINATION ARTICLE, Company's reserving practices at the Commutation Settlement Amount shall be the greater of the amount calculated in paragraph D or the net present value of outstanding ceded reserves including incurred but not reported lossesEffective Time. If the Reinsurer disputes the Commutation Settlement Amount established Value is a positive amount, such amount shall be paid by the Company under this paragraph E, then such dispute shall be settled by a panel of three actuaries, one to be chosen by each party and the third by the two so chosen. If either party refuses or neglects to appoint an actuary within 30 days, the other party may appoint two actuariesRetrocessionaire. If the two actuaries fail Settlement Value is a negative amount, such amount shall be paid by the Retrocessionaire to agree on the selection of a third actuary Company. 8.2 If, within 30 45 days of their appointmentits receipt of the Settlement Report, each the Retrocessionaire notifies the Company in writing (a "Dispute Notice") that it disputes any amounts or calculations used in determining the Settlement Value or the Commutation Value in the Settlement Report, the Retrocessionaire or the Company, as the case may be, may withhold payment of them the amounts so disputed (the "Disputed Amounts"), if any, shown due in the Settlement Report until the dispute is resolved in accordance with the terms of this Agreement. The Dispute Notice shall name twospecifically identify the Disputed Amount and thereafter the parties will, to the extent practicable, confer in good faith to resolve such dispute. If, after so conferring, the Retrocessionaire still contests the Disputed Amounts reported in the Settlement Report, then, no later than 90 days after the Retrocessionaire's receipt of whom the other Settlement Report, the Retrocessionaire shall decline one and the decision shall be made by drawing lots. All the actuaries shall be Fellows appoint an independent actuary who is a member of the Casualty Actuarial Society or members reasonably acceptable to the Company to review the Settlement Report and provide to the parties a report which includes the conclusions of such independent actuary and the bases for such conclusions. The parties will abide by the conclusions of the American Academy of Actuaries. All of the actuaries shall be independent of either party to this Contract. Each party shall bear the cost of their appointed actuary (or actuary appointed for them if they fail to make a timely appointment) and shall share the cost evenly of the third actuary. The settlement agreed upon by a majority cost of the panel of actuaries such independent actuary shall be final shared equally by the Company and binding on both parties and set forth in a sworn written document expressing their professional opinion that said value is fair for the complete mutual release of all liabilities in respect of such reservesRetrocessionaire.

Commutation. A. The Reinsurer may cancel and commute this Contract at any time with 90 calendar days days’ advance written notice by certified mail, but only in the event(s) of: 1. Payment by the Reinsurer of the overall aggregate limit; or 2. Failure by the Company to pay any amounts when due under this Contract, if such default is not cured within 30 calendar days following receipt by certified mail by the Company of notice of such default from the subscribing reinsurer. B. At any time after expiration or termination of this Contract Contract, or except as provided within the TERM ARTICLE, the Company may commute this Contract with 90 calendar days days’ advance written notice by certified mail, but only if the Notional Experience Account balance is greater than zero. C. As provided within the SPECIAL TERMINATION ARTICLE, upon the Company’s termination of a subscribing reinsurer’s share in the Contract upon the happening of any one of the enumerated circumstances, the Company has the option, option but not the obligation, obligation to commute this Contract with written notice. D. Upon Commutation by the Reinsurer in accordance with paragraph A, above, or Commutation by the Company in accordance with paragraph B, above, the following shall occur: 1. The Notional Experience Account balance shall be calculated as stipulated in the NOTIONAL EXPERIENCE ACCOUNT ARTICLE, as of the date of commutation. 2. The “Commutation Settlement Amount” will be equal to the amount under paragraph D.1, above, and the Reinsurer shall remit to the Company this Commutation Settlement Amount within 5 U.S. business days following such calculation. 3. Upon receipt of the Commutation Settlement Amount, the Company shall provide the Reinsurer with a complete and final release of any further liability under this Contract, or so deemed; concurrently, the Company shall release any Letters of Credit provided by the Reinsurer Reinsurers under the UNAUTHORIZED REINSURANCE ARTICLE. In the event that any or all Letters of Credit have not been released within 5 business days of the receipt of the Commutation Settlement Amount, it is agreed that the Reinsurer can xxxx the Company at any time and the Company has to pay to the Reinsurer an annualized fee of 200 bps on the amount of any Letters of Credit not released 5 business days after the receipt of the Commutation Settlement Amount. E. Upon Commutation by the Company in accordance with paragraph C above and the SPECIAL TERMINATION ARTICLE, the Commutation Settlement Amount shall be the greater of the amount calculated in paragraph D or the net present value of outstanding ceded reserves including incurred but not reported losses. If the Reinsurer disputes the Commutation Settlement Amount established by the Company under this paragraph E, then such dispute shall be settled by a panel of three actuaries, one to be chosen by each party and the third by the two so chosen. If either party refuses or neglects to appoint an actuary within 30 days, the other party may appoint two actuaries. If the two actuaries fail to agree on the selection of a third actuary within 30 days of their appointment, each of them shall name two, of whom the other shall decline one and the decision shall be made by drawing lots. All the actuaries shall be Fellows of the Casualty Actuarial Society or members of the American Academy of Actuaries. All of the actuaries shall be independent of either party to this Contract. Each party shall bear the cost of their appointed actuary (or actuary appointed for them if they fail to make a timely appointment) and shall share the cost evenly of the third actuary. The settlement agreed upon by a majority of the panel of actuaries shall be final and binding on both parties and set forth in a sworn written document expressing their professional opinion that said value is fair for the complete mutual release of all liabilities in respect of such reserves.

Commutation. A. The Reinsurer may cancel and commute this Contract at any time with 90 calendar days advance written notice by certified mail, but only in the event(s) of: 1. Payment by the Reinsurer of the overall aggregate limit; or 2. Failure by the Company to pay any amounts when due under this Contract, if such default is not cured within 30 calendar days following receipt by certified mail by the Company of notice of such default from the subscribing reinsurer. B. At any time after expiration or termination of this Contract the Company may commute this Contract with 90 calendar days advance written notice by certified mail, but only if the Notional Experience Account balance is greater than zero. C. As provided within the SPECIAL TERMINATION ARTICLE, upon the Company’s termination of a subscribing reinsurer’s share in the Contract upon the happening of any one of the enumerated circumstances, the Company has the option, but not the obligation, to commute this Contract with written notice. D. Upon Commutation by the Reinsurer in accordance with paragraph A, above, or Commutation by the Company in accordance with paragraph B, above, the following shall occur: 1. The Notional Experience Account balance shall be calculated calculated, as stipulated in the NOTIONAL EXPERIENCE ACCOUNT ARTICLE, as of the date of commutation. If the date of commutation is prior to December 31, 2017, the Notional Experience Account balance shall be calculated using a reinsurer’s fixed expense rate of 29% in place of the 30% indicated in the NOTIONAL EXPERIENCE ACCOUNT ARTICLE. If the date of commutation is prior to December 31, 2016, the Notional Experience Account balance shall be calculated using a reinsurer’s fixed expense rate of 28% in place of the 30% indicated in the NOTIONAL EXPERIENCE ACCOUNT ARTICLE. Under such circumstances, this same 29% or 28% rate shall also be used in calculating the balance of the Funds Withheld Account under the FUNDS WITHHELD ACCOUNT ARTICLE such that the two account balances for any subscribing reinsurer that has elected the Funds Withheld option shall be equal. 2. The “Commutation Settlement Amount” will be equal to the amount under paragraph D.1, above, and the Reinsurer shall remit to the Company this Commutation Settlement Amount within 5 U.S. business days following such calculation. 3. Upon receipt of the Commutation Settlement Amount, the Company shall provide the Reinsurer with a complete and final release of any further liability under this Contract, or so deemed; concurrently, the Company shall release any Letters of Credit provided by the Reinsurer under the UNAUTHORIZED REINSURANCE ARTICLE. In the event that any or all Letters of Credit have not been released within 5 business days of the receipt of the Commutation Settlement Amount, it is agreed 93948002-12 (1-1-12) that the Reinsurer can xxxx the Company at any time and the Company has to pay to the Reinsurer an annualized fee of 200 bps on the amount of any Letters of Credit not released 5 business days after the receipt of the Commutation Settlement Amount. E. Upon Commutation by the Company in accordance with paragraph C above and the SPECIAL TERMINATION ARTICLE, the Commutation Settlement Amount shall be the greater of the amount calculated in paragraph D or the net present value of outstanding ceded reserves including incurred but not reported losses. If the Reinsurer disputes the Commutation Settlement Amount established by the Company under this paragraph E, then such dispute shall be settled by a panel of three actuaries, one to be chosen by each party and the third by the two so chosen. If either party refuses or neglects to appoint an actuary within 30 days, the other party may appoint two actuaries. If the two actuaries fail to agree on the selection of a third actuary within 30 days of their appointment, each of them shall name two, of whom the other shall decline one and the decision shall be made by drawing lots. All the actuaries shall be Fellows of the Casualty Actuarial Society or members of the American Academy of Actuaries. All of the actuaries shall be independent of either party to this Contract. Each party shall bear the cost of their appointed actuary (or actuary appointed for them if they fail to make a timely appointment) and shall share the cost evenly of the third actuary. The settlement agreed upon by a majority of the panel of actuaries shall be final and binding on both parties and set forth in a sworn written document expressing their professional opinion that said value is fair for the complete mutual release of all liabilities in respect of such reserves.