Common use of INSOLVENCY CLAUSE Clause in Contracts

INSOLVENCY CLAUSE. (If more than one reinsured company is included in the designation of "Company" this Article shall apply only to the insolvent company or companies) In the event of the insolvency of the Company and the appointment of a conservator, liquidator or statutory successor, the reinsurance provided by this Agreement shall be payable by the Reinsurer directly to the Company or to its liquidator, receiver or statutory successor on the basis of the liability of the Company under the contract or contracts reinsured. Subject to the right of offset and the verification of coverage, the Reinsurer shall pay its share of the loss without diminution because of the insolvency of the Company. The liquidator, receiver or statutory successor of the Company shall give written notice of the pendency of each claim against the Company on a Policy or bond reinsured within a reasonable time after such claim is filed in the insolvency proceeding. During the pendency of such claim, the Reinsurer may, at its own expense, investigate such claim and interpose in the proceeding where such claim is to be adjudicated any defense or defenses which it may deem available to the Company, its liquidator or receiver or statutory successor. Subject to court approval, any expense thus incurred by the Reinsurer shall be chargeable against the Company as part of the expense of liquidation to the extent of such proportionate share of the benefit as shall accrue to the Company solely as a result of the defense undertaken by the Reinsurer. The reinsurance shall be payable as set forth above except where (i) the Agreement specifies another payee of such reinsurance in the event of the insolvency of the Company and (ii) the Reinsurer with the consent of the direct insureds has assumed such policy obligations of the Company as its direct obligations to the payees under such Policies, in substitution for the obligations of the Company to such payees; or where the Reinsurer has guaranteed performance of a contract insuring against physical damage to property for the benefit of No. 2521-0031 mortgagees or other loss payees named in this Agreement in accordance with Section 1114(c) of the New York Insurance Law.

INSOLVENCY CLAUSE. (If more than one reinsured company To the extent any risk or obligation is included in assumed by the designation Reinsurer pursuant to Section 3.2 hereof, the portion of "such risk or obligation, when ascertained, shall be payable on demand of the Company at the same time as the Company shall pay its Net Retained Line, with reasonable provision for verification before payment, and the reinsurance shall be payable by the Reinsurer, on the basis of the liability of the Company on the Bonds, without diminution because of the insolvency of the Company" this Article shall apply only to the insolvent company or companies) . In the event of the insolvency of the Company and the appointment of a conservatorCompany, liquidator or statutory successor, the this reinsurance provided by this Agreement shall be payable by immediately upon demand (to the Reinsurer extent set forth in Section 3.2) directly to the Company Company, or to its liquidator, receiver receiver, administrator, conservator or statutory successor on the basis of the liability of the Company under the contract or contracts reinsured. Subject to the right of offset and the verification of coverage, the Reinsurer shall pay its share of the loss without diminution because of the insolvency of the Company. The Company or because the liquidator, receiver, administrator or administrative receiver of the Company has failed to pay all or a portion of any claim. It is agreed, however, that within a reasonable time the liquidator, receiver, conservator or statutory successor of the Company shall give written notice to the Reinsurer of the pendency of each a claim against the Company on a Policy or bond indicating the subject Bond reinsured within a reasonable time after such claim is filed in by the insolvency proceedingReinsurer. During the pendency of such claim, the Reinsurer maymay investigate such claim and interpose, at its own expense, investigate such claim and interpose in the proceeding where such claim is to be adjudicated adjudicated, any defense or defenses which that it may deem available to the CompanyCompany or its liquidator, its liquidator or receiver receiver, administrator, conservator or statutory successor. Subject to court approval, any The expense thus incurred by the Reinsurer shall be chargeable chargeable, subject to the approval of the court, against the Company as part of the expense of conservation or liquidation to the extent of such proportionate a pro rata share of the benefit as shall which may accrue to the Company solely as a result of the defense undertaken by the each Reinsurer. The This reinsurance shall be payable as set forth above by the Reinsurer to the Company, or to its liquidator, receiver, administrator, conservator or statutory successor, except (a) where this Amended and Restated Agreement (iby way of an endorsement hereto with respect to any Bond) the Agreement specifies specifically provides for another payee of such this reinsurance in the event of the insolvency of the Company and (iib) where the Reinsurer Reinsurer, with the consent of the direct insureds payees under the Bond, has assumed such policy obligations of the Company as its Company's direct obligations to the such payees under such Policies, in substitution for the obligations of the Company to such payees; or where the Reinsurer has guaranteed performance of a contract insuring against physical damage to property for the benefit of No. 2521-0031 mortgagees or other loss payees named in this Agreement in accordance with Section 1114(c) of the New York Insurance Law.

INSOLVENCY CLAUSE. (If more than one reinsured company is included Each party hereby agrees that in the designation of "Company" this Article shall apply only to the insolvent company or companies) In the event of the insolvency of the Company and the appointment of a conservatorany party, liquidator or statutory successor, the reinsurance provided by this Agreement shall be so construed that the reinsurance due hereunder shall be payable by the Reinsurer directly to the Company insolvent party or to its liquidator, receiver receiver, or statutory successor by the reinsurer on the basis of the liability of the Company insolvent party under the contract or contracts reinsured. Subject to the right of offset and the verification of coverage, the Reinsurer shall pay its share of the loss reinsured without diminution because of the insolvency of insolvency. It is further agreed that the Company. The liquidator, receiver the receiver, or the statutory successor of the Company insolvent party shall give written notice to the reinsurer of the pendency of each a claim against the Company insolvent party on a Policy or bond the policy reinsured within a reasonable time after such claim is filed in the insolvency proceeding. During solvency proceedings; that during the pendency of such claim, claim the Reinsurer may, at its own expense, reinsurer may investigate such claim and interpose at their own expense in the proceeding where such claim is to be adjudicated any defense or defenses which it they may deem available to the Companyinsolvent party or its liquidator, its liquidator or receiver receiver, or statutory successor. Subject to court approval, any expense ; that the expenses thus incurred by the Reinsurer reinsurer shall be chargeable subject to court approval against the Company insolvent party as part of the expense of liquidation to the extent of such the proportionate share of the benefit as shall which may accrue to the Company insolvent party solely as a result of the defense undertaken by the Reinsurerreinsurer. The It is further agreed and understood that as to all reinsurance made, ceded, renewed or otherwise becoming effective hereunder, the reinsurance shall be payable as set forth above except where (i) by the Agreement specifies another payee of such reinsurance in the event of the insolvency of the Company and (ii) the Reinsurer with the consent of the direct insureds has assumed such policy obligations of the Company as its direct obligations insurer directly to the payees under such Policiesinsolvent party or to its liquidator, in substitution for the obligations of the Company to such payees; receiver or where the Reinsurer has guaranteed performance of a contract insuring against physical damage to property for the benefit of No. 2521-0031 mortgagees or other loss payees named in this Agreement in accordance with Section 1114(c) of the New York Insurance Lawstatutory successor.

INSOLVENCY CLAUSE. (If more than one reinsured company is included in the designation of "Company" this Article shall apply only to the insolvent company or companies) In the event of the insolvency of the Company and the appointment of a conservator, liquidator or statutory successor, the The reinsurance provided by this Agreement Contract shall be payable by the Reinsurer Reinsurers directly to the Company or to its liquidator, receiver or statutory successor on the basis of the liability of the Company under the contract or contracts reinsured. Subject to the right of offset and the verification of coverage, the Reinsurer shall pay its share of the loss reinsured without diminution because of the insolvency of the Company. The liquidatorIn the event of the insolvency of the Company, the liquidator or receiver or statutory successor of the Company shall give written notice of the pendency of each claim against the Company on a Policy policy or bond reinsured within a reasonable time after such claim is filed in the insolvency proceeding. During ; and during the pendency of such claim, the Reinsurer may, at its own expense, Reinsurers may investigate such claim and interpose interpose, at their own expense, in the proceeding where such claim is to be adjudicated any defense or defenses which it may deem available to the Company, its liquidator or receiver or statutory successor. Subject to court approval, any The expense thus incurred by the Reinsurer Reinsurers shall be chargeable chargeable, subject to court approval, against the Company as part of the expense of liquidation to the extent of such proportionate share of the benefit as shall accrue to the Company solely as a result of the defense undertaken by the ReinsurerReinsurers. The This reinsurance shall be payable as set forth above hereinbefore in this paragraph provided except as otherwise provided by Section 315 (relating to Fidelity and Surety Risks) of the Insurance Law of New York or except (a) where (i) the Agreement specifies contract specifically provides another payee of such reinsurance in the event of the insolvency of the Company and (iib) where the Reinsurer Reinsurers with the consent of the direct insured or insureds has have assumed such policy obligations of the Company as its direct obligations Reinsurers to the payees under such Policies, policies and in substitution for the obligations of the Company to such payees; or where the Reinsurer has guaranteed performance of a contract insuring against physical damage to property for the benefit of No. 2521-0031 mortgagees or other loss payees named in this Agreement in accordance with Section 1114(c) of the New York Insurance Law.

INSOLVENCY CLAUSE. (If more than one reinsured company is included in the designation of "Company" this Article shall apply only to the insolvent company or companies) In the event of the insolvency of the Company and the appointment of a conservator, liquidator liquidator, or statutory successor, successor of the reinsurance provided Companythe portion of any risk or obligation assumed by this Agreement the Reinsurer shall be payable by the Reinsurer directly to the Company or to its conservator, liquidator, receiver or statutory successor on the basis of claims allowed against the liability insolvent Company by any court of competent jurisdiction or by any conservator, liquidator, or statutory successor of the Company under having the contract or contracts reinsured. Subject authority to the right of offset and the verification of coverageallow such claims, the Reinsurer shall pay its share of the loss without diminution because of that insolvency , or because the insolvency of the Company. The conservator, liquidator, receiver or statutory successor has failed to pay all or a portion of any claims. It is agreed, however, that the conservator, liquidator, or statutory successor of the Company shall give written notice to the Reinsurers of the pendency of each a claim against the Company which would involve a possible liability on a Policy the part of the Reinsurers, indicating the policy or bond reinsured reinsured, within a reasonable time after such claim is filed in the insolvency proceedingconservation or liquidation proceeding or in the receivership. During It is further agreed that during the pendency of such claim, claim the Reinsurer may, at its own expense, Reinsurers may investigate such claim and interpose interpose, at their own expense, in the proceeding where such claim is to be adjudicated adjudicated, any defense or defenses which it that they may deem available to the CompanyCompany or its conservator, its liquidator or receiver liquidator, or statutory successor. Subject to court approval, any The expense thus incurred by the Reinsurer Reinsurers shall be chargeable chargeable, subject to the approval of the Court, against the Company as part of the expense of conservation or liquidation to the extent of such proportionate a pro rata share of the benefit as shall which may accrue to the Company solely as a result of the defense undertaken by the ReinsurerReinsurers. The reinsurance Where two or more Reinsurers are involved in the same claim and a majority in interest elect to interpose defense to such claim, the expense shall be payable as set forth above except where (i) the Agreement specifies another payee of such reinsurance in the event of the insolvency of the Company and (ii) the Reinsurer with the consent of the direct insureds has assumed such policy obligations of the Company as its direct obligations to the payees under such Policies, in substitution for the obligations of the Company to such payees; or where the Reinsurer has guaranteed performance of a contract insuring against physical damage to property for the benefit of No. 2521-0031 mortgagees or other loss payees named in this Agreement apportioned in accordance with Section 1114(c) the terms of the New York Insurance LawAgreement as though such expense had been incurred by the Company.

INSOLVENCY CLAUSE. (If more than one reinsured company is included in the designation of "Company" this Article shall apply only to the insolvent company or companies) In the event of the insolvency of the Company and the appointment of a conservatorCompany, liquidator or statutory successor, the this reinsurance provided by this Agreement shall be payable by the Reinsurer directly to the Company Company, or to its liquidator, receiver receiver, conservator or statutory successor on the basis of the liability of the Company under the contract or contracts reinsured. Subject to the right of offset and the verification of coverage, the Reinsurer shall pay its share of the loss without diminution because of due to the insolvency of the Company. The Company or because the liquidator, receiver receiver, conservator or statutory successor of the Company has failed to pay all or a portion of any claims. It is agreed, however, that the liquidator, receiver, conservator or statutory successor of the Company shall give written notice to the Reinsurer of the pendency of each claim any claims against the Company indicating the policy reinsured, which claims would involve a possible liability on a Policy or bond reinsured the part of the Reinsurer, within a reasonable time after such claim is filed in the insolvency proceeding. During conservation or liquidation proceeding or in the receivership, and that during the pendency of such claim, the Reinsurer maymay investigate such claim and interpose, at its own expense, investigate such claim and interpose in the any proceeding where such claim is to be adjudicated adjudicated, any defense or defenses which that it may deem available to the CompanyCompany or its liquidator, its liquidator or receiver receiver, conservator or statutory successor. Subject to court approval, any expense The expenses thus incurred by the Reinsurer shall be chargeable chargeable, subject to the approval of the Court, against the Company as part of the expense of conversion or liquidation to the extent of such proportionate a pro rata share of the benefit as shall which may accrue to the Company solely as a result of the defense undertaken by the Reinsurer. The reinsurance shall be payable as set forth above by the Reinsurer to the Company or its liquidator, receiver, conservator or statutory successor, except (a) where (i) the Agreement specifies specifically provides another payee of such reinsurance in the event of the insolvency of the Company and (iib) where the Reinsurer with the consent of the direct insureds Insured or Insured has assumed such policy obligations of the Company as its direct obligations of the 5 Reinsurer to the payees under such Policies, policies and in substitution for the obligations of the Company to such payees; . The Company or where the Reinsurer has guaranteed performance may offset any balance, whether on account of a contract insuring against physical damage premium, commission, claims or losses, adjustment expense, salvage, or any other amount due from one party to property for the benefit of No. 2521-0031 mortgagees or other loss payees named in under this Agreement in accordance with Section 1114(c) of or under any other agreement herefore or hereafter entered into between the New York Insurance LawCompany and the Reinsurer, whether acting as assuming reinsurer or as ceding company.

INSOLVENCY CLAUSE. (If more than one reinsured company is included in the designation of "Company" this Article shall apply only to the insolvent company or companiesa) In the event of the insolvency of the Company and the appointment of a conservator, liquidator or statutory successorsuccessor of the Company, the reinsurance provided by this Agreement shall be payable to such conservator, liquidator or statutory successor immediately upon demand, subject to the right of offset and with reasonable provisions for verification of the Reinsurer's liability, on the basis of claim allowed against the insolvent Company by any court if competent jurisdiction or by any conservator, liquidator, or statutory successor of the Company having the authority to allow such claims, with diminution because of such insolvency or because such conservator, liquidator or statutory successor has failed to pay all or a portion of any claims. Payments by the Reinsurer as above set forth shall be made directly to the Company or to its liquidatorconservator, receiver liquidator or statutory successor on successor, except where this Agreement specifically provides another payee of such reinsurance in the basis of the liability of the Company under the contract or contracts reinsured. Subject to the right of offset and the verification of coverage, the Reinsurer shall pay its share of the loss without diminution because event of the insolvency of the Company. The . b) In the event of the insolvency of the Company, the liquidator, receiver conservator or statutory successor of the Company shall give the Reinsurer written notice of the pendency of each claim against the Company on a Policy policy or bond reinsured within a reasonable time after such claim is filed in the insolvency proceeding. During the pendency of such claim, the Reinsurer may, at its own expense, investigate such claim and interpose in the proceeding where such claim is to be adjudicated any defense or defenses which it may deem available to the Company, its conservator, liquidator or receiver or statutory successor. Subject to court approval, any expense thus incurred by the Reinsurer shall be chargeable against the Company as part of the expense of liquidation to the extent of such proportionate share of the benefit as shall accrue to the Company solely as a result of the defense undertaken by the Reinsurer. The reinsurance shall be payable as set forth above except where (i) the Agreement specifies another payee of such reinsurance in the event of the insolvency of the Company and (ii) the Reinsurer with the consent of the direct insureds has assumed such policy obligations of the Company as its direct obligations to the payees under such Policies, in substitution for the obligations of the Company to such payees; or where the Reinsurer has guaranteed performance of a contract insuring against physical damage to property for the benefit of No. 2521-0031 mortgagees or other loss payees named in this Agreement in accordance with Section 1114(c) of the New York Insurance Law.

INSOLVENCY CLAUSE. (If more than one reinsured company is included in the designation of "Company" this Article shall apply only to the insolvent company or companies) In the event of the insolvency of the Company and the appointment of a conservatorCompany, liquidator all coinsurance made, ceded, renewed or statutory successor, the reinsurance provided by otherwise becoming effective under this Agreement shall be payable by the Reinsurer directly to the Company or to its liquidator, receiver or statutory successor except (a) where this Agreement specifically provides another payee of such reinsurance in the event of the insolvency of the Company or (b) where the Reinsurer, in its sole discretion has elected to obtain the consent of the direct policyholders has assumed such policy obligations of the Company as direct obligations of the Reinsurer to the beneficiaries under such Policies or Post-Closing Policies and in substitution for the obligations of the Company to such beneficiaries on the basis of the liability of the Company under the contract or contracts reinsured. Subject to the right of offset Policies and the verification of coveragePost-Closing Policies, the Reinsurer shall pay its share of the loss without diminution because of the insolvency of the Company. The liquidatorIt is understood, however, that in the event of the insolvency of the Company, the liquidator or receiver or statutory successor of the Company shall give written notice of the pendency of each a claim against the Company on a Policy or bond reinsured Post-Closing Policy within a reasonable period of time after such claim is filed in the insolvency proceeding. During proceedings and that during the pendency of such claim, claim the Reinsurer maymay investigate such claim and interpose, at its own expense, investigate such claim and interpose in the proceeding where such claim is to be adjudicated any defense or defenses which it may deem available to the Company, Company or its liquidator or receiver or statutory successor. Subject to court approval, any It is further understood that the expense thus incurred by the Reinsurer shall be chargeable chargeable, subject to court approval, against the Company as part of the expense of liquidation to the extent of such a proportionate share of the benefit as shall which may accrue to the Company solely as a result of the defense undertaken by the Reinsurer. The reinsurance shall be payable as set forth above except where (i) the Agreement specifies another payee of such reinsurance in the event of the insolvency of the Company and (ii) the Reinsurer with the consent of the direct insureds has assumed such policy obligations of the Company as its direct obligations to the payees under such Policies, in substitution for the obligations of the Company to such payees; or where the Reinsurer has guaranteed performance of a contract insuring against physical damage to property for the benefit of No. 2521-0031 mortgagees or other loss payees named in this Agreement in accordance with Section 1114(c) of the New York Insurance Law.