Common use of EXTRACONTRACTUAL DAMAGES Clause in Contracts

EXTRACONTRACTUAL DAMAGES. In no event will THE REINSURER participate in any extra-contractual damages, including without limitation any punitive or compensatory damages or statutory penalties which are awarded against THE COMPANY as a result of an act, omission or course of conduct committed solely by THE COMPANY in connection with the insurance reinsured under this Agreement. Subject to the foregoing paragraph, to the extent permitted by law, THE REINSURER shall share proportionately with respect to extra-contractual damages only if THE REINSURER specifically consented prior to the relevant acts, course of conduct or omissions to the act, of THE COMPANY that ultimately resulted in the assessment of the extra-contractual damages. In such situations, THE REINSURER and THE COMPANY shall share such damages so assessed in equitable proportions. For purposes of this provision, the following definitions shall apply:

EXTRACONTRACTUAL DAMAGES. In no event will THE REINSURER participate in any extra-contractual damages, including without limitation any punitive or compensatory damages or statutory penalties which are awarded against THE COMPANY as a result of an act, omission or course of conduct committed solely by THE COMPANY in connection with the insurance reinsured under this Agreement. Subject to the foregoing paragraph, to the extent permitted by law, THE REINSURER shall share proportionately with respect to extra-contractual damages only if THE REINSURER specifically consented prior to the relevant acts, course of conduct or omissions to the act, of THE the CEDING COMPANY that ultimately resulted in the assessment of the extra-contractual damages. In such situations, THE REINSURER and THE COMPANY shall share such damages so assessed in equitable proportions. For purposes of this provision, the following definitions shall apply: