EXTRA-CONTRACTUAL DAMAGES. MARC will not participate in punitive or compensatory damages that are awarded against the Ceding Company as a result of an act, omission, or course of conduct committed solely by the Ceding Company, its agents, or representatives in connection with claims covered under this Agreement. MARC will, however, pay its share of statutory penalties awarded against the Ceding Company in connection with claims covered under this Agreement if MARC elected in writing to join in the contest of the coverage in question. The parties recognize that circumstances may arise in which equity would require MARC, to the extent permitted by law, to share proportionately in punitive and compensatory damages. Such circumstances are difficult to define in advance, but would generally be those situations in which MARC was an active party and, in writing, recommended, consented to, or ratified the act or course of conduct of the Ceding Company that ultimately resulted in the assessment of the extra-contractual damages. In such situations, MARC and the Ceding Company will share such damages so assessed, in equitable proportions. For purposes of this Article, the following definitions will apply.
Appears in 6 contracts
Samples: Reinsurance Agreement (Ameritas Variable Separate Account V), Automatic and Facultative Yrt Reinsurance Agreement (Nationwide VL Separate Account-G), Automatic Yrt Second Excess Reinsurance Agreement (First Trinity Financial CORP)
