Common use of During a Reserve Credit Triggering Event Clause in Contracts

During a Reserve Credit Triggering Event. During the continuation of a Reserve Credit Triggering Event, the Ceding Company and the Reinsurer agree that the assets maintained in the Trust Account may be withdrawn by the Ceding Company at any time, notwithstanding any other provisions of this Agreement, and shall be utilized and applied by the Ceding Company or any successor by operation of law of the Ceding Company, including any liquidator, rehabilitator, receiver or conservator of the Ceding Company, without diminution because of Insolvency on the part of the Ceding Company or Reinsurer only for the following purposes: (i) to reimburse the Ceding Company for the Reinsurer’s share of premiums returned to the owners of the Reinsured Contracts on account of cancellations of such Reinsured Contracts; (ii) to reimburse the Ceding Company for the Reinsurer’s share of surrenders and benefits or losses paid by the Ceding Company pursuant to the provisions of the Reinsured Contracts; (iii) to fund an account with the Ceding Company in an amount at least equal to the deduction, for reinsurance ceded, from the Ceding Company’s liabilities for Reinsured Contracts. Such account shall include, but not be limited to, amounts for policy reserves, reserves for claims and losses incurred (including losses incurred but not reported), loss adjustment expenses, and unearned premiums; and (iv) to pay any other amounts the Ceding Company claims are due under this Agreement. The Ceding Company shall return to the Trust Account within five (5) Business Days of withdrawal, assets withdrawn in excess of all amounts due under Sections 5.7(b)(i), (ii) and (iii), or, in the case of Section 5.7(b)(iv), assets that are subsequently determined not to be due. The Ceding Company shall pay to the Reinsurer interest on amounts held pursuant to Sections 5.7(b)(iii) at the average of the daily “prime rate” published in The Wall Street Journal for each of the days in the applicable period, but in any event not less than zero, for the period that such assets are held by the Ceding Company. Any excess amount shall at all times be held by the Ceding Company (or any successor by operation of law of the Ceding Company, including any liquidator, rehabilitator, receiver or conservator of the Ceding Company) in trust for the benefit of the Reinsurer and be maintained in a segregated account, separate and apart from any assets of the Ceding Company for the sole purpose of funding the payments and reimbursements described in paragraphs (i), (ii) and (iv) of Section 5.7(b).

During a Reserve Credit Triggering Event. During the continuation of a Reserve Credit Triggering Event, the Ceding Company and the Reinsurer agree that that, the assets maintained in the Trust Account may be withdrawn and, following the exhaustion of all assets in the Trust Account, any Letter of Credit may be drawn upon by the Ceding Company at any time, notwithstanding any other provisions of this Agreement, and shall be utilized and applied by the Ceding Company or any successor by operation of law of the Ceding Company, including any liquidator, rehabilitator, receiver or conservator of the Ceding Company, without diminution because of Insolvency on the part of the Ceding Company or the Reinsurer only for the following purposes: (i) to pay or reimburse the Ceding Company for the Reinsurer’s share of premiums returned returned, but not yet recovered from the Reinsurer, to the owners of the Reinsured Contracts on account of cancellations of such Reinsured Contracts; (ii) to pay or reimburse the Ceding Company for the Reinsurer’s share of surrenders and benefits or losses paid by the Ceding Company pursuant to Company, but not yet recovered from the Reinsurer, under the terms and provisions of the Reinsured Contracts; (iii) to fund an account with pay the Reinsurer amounts held in the Trust Account in excess of the amount necessary to secure the credit or reduction from liability for reinsurance taken by the Ceding company in respect of this Agreement; (iv) where the Ceding Company has received notification of termination of the Trust Account or cancellation of the Letter of Credit and where the Reinsurer’s obligations under this Agreement remain unliquidated and undischarged [***] prior to the termination date, to withdraw amounts equal to the obligations and deposit those amounts in a separate account, in the name of the Ceding Company in an amount at least equal to the deductionany qualified U.S. financial institution as defined in 18 Del.C. § 913(b) apart from its general assets, in trust for reinsurance ceded, from the Ceding Company’s liabilities for Reinsured Contracts. Such account shall include, but not be limited to, amounts for policy reserves, reserves for claims such uses and losses incurred (including losses incurred but not reportedpurposes specified in Sections 5.7(b)(i), loss adjustment expenses5.7(b)(ii) and 5.7(b)(v) as may remain executory after such withdrawal and for any period after the termination date, and unearned premiums; andor (ivv) to pay any other amounts the Ceding Company claims are due under this Agreement. The Ceding Company shall return to the Trust Account or the Reinsurer within five (5) Business Days [***] of withdrawalwithdrawal or draw on any Letter of Credit, assets withdrawn or drawn upon in excess of all amounts due under Sections 5.7(b)(i), (ii), (iii) and (iiiv), or, in the case of Section 5.7(b)(iv), ) assets that are subsequently determined not to be due. The Ceding Company shall pay to the Reinsurer interest on such excess withdrawn or drawn amounts under Section Sections 5.7(b)(i), (ii), (iii) and (v) and assets held by the Ceding Company pursuant to Sections 5.7(b)(iiiSection 5.7(b)(iv) at the average of the daily “prime rate” prime’ rate (which shall not be less than zero) published in The Wall Street Journal for each of the calendar days in the applicable period, but in any event not less than zero, for the period that such assets are held by the Ceding Company. Any excess amount shall at all times be held by the Ceding Company (or any successor by operation of law of the Ceding Company, including any liquidator, rehabilitator, receiver or conservator of the Ceding Company) in trust for the benefit of the Reinsurer and be maintained in a segregated account, separate and apart from any assets of the Ceding Company for the sole purpose of funding the payments and reimbursements described in paragraphs clauses (i), (ii) (iii) and (ivv) of Section 5.7(b).. [***]