Common use of EXTRACONTRACTUAL DAMAGES Clause in Contracts

EXTRACONTRACTUAL DAMAGES. In no event will THE REINSURER participate in punitive or compensatory damages which are awarded against THE COMPANY as a result of an act, omission or course of conduct committed by THE COMPANY in connection with the insurance under this Agreement. THE REINSURER will, however, pay its share of statutory penalties awarded against THE COMPANY in connection with the insurance reinsured under this Agreement. The parties recognize that circumstances may arise in which equity would require THE REINSURER, to the extent permitted by law, to share proportionately in certain assessed damages. Such circumstances are difficult to define in advance, but generally would be those situations in which THE REINSURER was an active party and in writing either directed, consented to, or ratified the act, omission, or course of conduct of THE COMPANY which ultimately results in the assessment of punitive and/or compensatory damages. In such situations, THE COMPANY and THE REINSURER would share such damages assessed in equitable proportions. For purposes of the provision, the following definitions will apply:

EXTRACONTRACTUAL DAMAGES. In no event will THE REINSURER participate in punitive or compensatory damages which are awarded against THE COMPANY as a result of an act, omission or course of conduct committed by THE COMPANY in connection with the insurance under this Agreement. THE REINSURER will, however, pay its share of statutory penalties awarded against THE COMPANY in connection with the insurance reinsured under this Agreement. The parties recognize that circumstances may arise in which equity would require THE REINSURER, to the extent permitted by law, to share proportionately in certain assessed damages. Such circumstances are difficult to define in advance, but generally would be those situations in which THE REINSURER was an active party and in writing either directed, consented to, or ratified the act, omission, or course of conduct of THE COMPANY which ultimately results in the assessment of punitive and/or compensatory damages. In such situations, THE COMPANY and THE REINSURER would share such damages assessed in equitable proportions. For purposes of the provision, the following definitions will apply:: “Punitive Damages” are those damages awarded as a penalty, the amounts of which are not governed or fixed by statute;