Common use of EXCESS OF ORIGINAL POLICY LIMITS Clause in Contracts

EXCESS OF ORIGINAL POLICY LIMITS. A. This Agreement shall protect the Company, within the limits hereof, in connection with Losses Incurred in excess of the limit of its original Policy including any legal costs and expenses incurred in connection therewith (“Excess of Original Policy Limit Loss”), such loss in excess of the limit having been incurred because of failure by it to settle within the policy limit or by reason of alleged or actual negligence, fraud, or bad faith in rejecting an offer of settlement or in the preparation of the defense or in the trial of any action against its insured or reinsured or in the preparation or prosecution of an appeal consequent upon such action.