Funds Withheld Account Excess. If, following the end of any Quarterly Accounting Period, the credit balance on the Funds Withheld Account exceeds one hundred percent (100%) of the Applicable Reserves at the end of such Quarterly Accounting Period, the Retrocedent shall pay, within twenty (20) Business Days following the end of such Quarterly Accounting Period, an amount equal to such excess to the Lloyd’s Trust Account, provided that the Funds Withheld Account is reduced by the same amount.
Funds Withheld Account Excess. Beginning with the quarter ended December 31, 2025, if at the end of a calendar quarter during the term of this Agreement the credit balance on the Funds Withheld Account exceeds the Carried Reserves at the end of such quarter, then the Cedent shall pay to the Reinsurer, within fifteen (15) Business Days following the Reinsurer’s written request therefor following the end of such quarter, an amount equal to such excess, provided that the Funds Withheld Account shall be reduced by the same amount. In the event that the Reinsurer and the Cedent disagree on the amount of Carried Reserves as of the end of any calendar quarter, the Reinsurer may deliver written notice to the Cedent of such disagreement and the Parties shall attempt in good faith to resolve such disagreement. If the Parties are unable to resolve any such foregoing disagreement within ten (10) Business Days after the Reinsurer delivers written notice of any such disagreement to the Cedent, the Parties shall jointly request the Actuarial Firm to determine the proper amount of the Carried Reserves. The Actuarial Firm must make a determination and final report with respect to Carried Reserves within thirty (30) calendar days of being retained. The Actuarial Firm’s determination of the proper amount of the Carried Reserves shall be final and binding upon the Parties. The Cedent and the Reinsurer shall each pay one-half of the Actuarial Firm’s fees, costs and expenses associated with such determination.
