Insolvency of Reinsurer. If the Reinsurer becomes insolvent as determined by the Department of Insurance responsible for such determination, amounts due the Reinsurer will be paid net of the terms of this Agreement and directly to the liquidator, receiver, or statutory successor without decrease. All reinsurance ceded under this Agreement may be recaptured by the Ceding Company without charge or penalty as of the date Reinsurer fails to meet its obligations under this Agreement.
Insolvency of Reinsurer. In the event of the insolvency of the Reinsurer, all amounts due but not paid to the Reinsurer by the Cedant on such date under this Agreement, regardless of the date on which they became due, and all amounts which become due to the Reinsurer by the Cedant after that date under this Agreement may be retained by the Cedant and set off against the amounts due by the Reinsurer under this Agreement, whether they were due before the insolvency or became due after. The balance only, if any, shall be payable by the Cedant to the Reinsurer at the expiry of all liability under this Agreement.
Insolvency of Reinsurer. In the event of the insolvency of the Reinsurer, the Company may cancel this Agreement for new business by promptly providing the Reinsurer with written notice of cancellation, to be effective as of the date on which the Reinsurer's insolvency is established by the authority responsible for such determination. Any requirement for a notification period prior to the cancellation of the Agreement would not apply under such circumstances. Amounts due Reinsurer will be paid directly to its liquidator, receiver or statutory successor without diminution because of its insolvency. In addition, the Company may provide the Reinsurer with written notice of its intent to recapture all reinsurance in force under this Agreement regardless of the duration the reinsurance has been in force or the amount retained by the Company on the reinsured policies. If the Company elects to recapture reinsurance under this Article, unearned premiums, net of outstanding balances, will be paid by the party with positive balance. Further, the Company will pay the Reinsurer the amount of the Net GAAP liability being held on behalf of the business reinsured under this Agreement. In the event of the insolvency of either party, the rights or remedies of this Agreement will remain in full force and effect. END OF ARTICLE XII
Insolvency of Reinsurer. In the event of the insolvency, liquidation or rehabilitation of the Reinsurer, the Ceding Company may provide the Reinsurer, its receiver, rehabilitator, conservator, liquidator or statutory successor with written notice of its intent to terminate all reinsurance in force under this Agreement, regardless of the duration the reinsurance has been in force. The effective date of a termination due to the insolvency, liquidation or rehabilitation of the Reinsurer is at the election of the Ceding Company.
Insolvency of Reinsurer. In the event of Reinsurer’s insolvency, Ceding Company may terminate this Agreement and recapture in force business pursuant to Article 12, Recapture.
Insolvency of Reinsurer. In the event of the insolvency, liquidation or rehabilitation of the Reinsurer, the Ceding Company may provide the Reinsurer, its receiver, rehabilitator, conservator, liquidator or statutory successor with written notice of its intent to terminate all reinsurance in force under this Agreement, regardless of the duration the reinsurance has been in force or the amount retained by the Ceding Company on the AFLIAC Contracts or the PL Contracts. The effective date of a termination due to the insolvency, liquidation or rehabilitation of the Reinsurer is at the election of the Ceding Company.
Insolvency of Reinsurer. 22 ARTICLE 17 - ERRORS AND OMISSIONS.............................................23
Insolvency of Reinsurer. In the event of REINSURER's insolvency, the Ceding Company may cancel the Agreement for future new business and will notify REINSURER in writing of its intent. The parties agree to waive the notification period for this cancellation, and the effective date will be no earlier than the effective date of REINSURER's insolvency. Upon giving written notice to REINSURER, the Ceding Company may also recapture all of the inforce business reinsured by REINSURER under this Agreement. In the event the Ceding Company exercises this recapture option, REINSURER will refund any unearned premium.
Insolvency of Reinsurer a) If the Reinsurer shall, during the term of this Agreement, be unable to pay its debts as they become due, or the amount of its liabilities shall exceed the value of its assets, or the Reinsurer shall otherwise be deemed insolvent, and a liquidator, rehabilitator, receiver or other statutory successor be appointed to the Reinsurer, the Company may draw on the Letter of Credit provided for under Article XIV for any amount due under this Agreement for an amount equal to the statutory reserves on the Business Reinsured less any outstanding LCF as defined in Schedule D.
Insolvency of Reinsurer. (a) Automatically upon the insolvency of Reinsurer and the appointment of a conservator, liquidator, receiver, or statutory successor of Reinsurer, and without the requirement of any act by any Person:
(i) all amounts due Reinsurer under this Retrocession Agreement shall be payable by NICO solely to National Union as a Reinsured under the LPT Reinsurance Agreement and as agent for the other companies comprised by the term “Reinsureds,” and not to any conservator, liquidator, receiver or statutory successor of Reinsurer, and
(ii) all amounts for which Reinsurer would be entitled to a credit against Reinsureds with respect to Ultimate Net Loss on the Subject Asbestos Liabilities shall be treated as credits directly to NICO in respect of its obligations on this cut-through.
(b) Payment in the event the foregoing cut-through is triggered shall be made, to the extent feasible, via the payment mechanism described in Section 13.1 of the Administrative Services Agreement, except that
(i) payments by NICO as Administrator shall be treated as discharge of NICO’s direct obligations to Reinsureds under this cut-through, and not as discharge of obligations with respect to cessions to Reinsurer and retrocessions to NICO, and
(ii) receipt of funds by NICO, to the extent allocable to Ultimate Net Loss on the Subject Asbestos Liabilities, shall be treated as in discharge of Reinsureds’ obligations to NICO under Section 6.1(a)(ii) above and not as (negative) cessions to Reinsurer and (negative) retrocessions to NICO.
(c) It is the intent of the Parties to take advantage, to the fullest extent possible, of the permission for cut-throughs granted by 40 P.S. § 221.34, as interpreted by the Supreme Court of Pennsylvania in Koken v. Villanova Insurance Co., 878 A.2d 51 (2005), aff’g and adopting Koken v. Legion Insurance Co., 831 A.2d 1196 (Pa. Commw. 2002).
