Common use of Insolvency of the Reinsured Clause in Contracts

Insolvency of the Reinsured. In the event of your declared insolvency, and the appointment of a domiciliary liquidator, receiver, conservator or statutory successor for you, this reinsurance shall be payable immediately upon demand, with reasonable provision for verification, directly to you or your domiciliary liquidator, receiver, conservator or statutory successor, on the basis of your liability without diminution because of your insolvency or because your liquidator, receiver, conservator or statutory successor has failed to pay all or a portion of any claim. Every liquidator, receiver, conservator or statutory successor of yours shall give us written notice of the pendency of a claim involving you indicating which of the certificates would involve possible liability on the part of us or to you or your domiciliary liquidator, receiver, conservator or statutory successor, within a reasonable amount of time after the claim is filed in the conservation, liquidation or other proceeding. During the pendency of any claim, we may investigate the same and interpose, at our own expense, in the proceeding where that claim is to be adjudicated, any defense or defenses that we may deem available to you, to your certificate holder, or to any liquidator, receiver or statutory successor of yours. The expenses thus incurred by us will be chargeable, subject to approval of the applicable court, against you as part of the expense of conservation or liquidation to the extent of a pro rata share of the benefit which may accrue to you as a result of the defense undertaken by us. This reinsurance shall be payable directly by us to you or to your domiciliary liquidator, receiver, conservator or statutory successor, except as expressly required otherwise by applicable insurance law.

Insolvency of the Reinsured. In the event of your declared insolvency, and the appointment of a domiciliary liquidator, receiver, conservator or statutory successor for you, this reinsurance shall be payable immediately upon demand, with reasonable provision for verification, directly to you or your domiciliary liquidator, receiver, conservator or statutory successor, on the basis of your liability without diminution because of your insolvency or because your liquidator, receiver, conservator or statutory successor has failed to pay all or a portion of any claim. Every liquidator, receiver, conservator or statutory successor of yours shall give us written notice of the pendency of a claim involving you indicating which of the certificates policies would involve possible liability on the part of us or to you or your domiciliary liquidator, receiver, conservator or statutory successor, within a reasonable amount of time after the claim is filed in the conservation, liquidation or other proceeding. During the pendency of any claim, we may investigate the same and interpose, at our own expense, in the proceeding where that claim is to be adjudicated, any defense or defenses that we may deem available to you, to your certificate policy holder, or to any liquidator, receiver or statutory successor of yours. The expenses thus incurred by us will be chargeable, subject to approval of the applicable court, against you as part of the expense of conservation or liquidation to the extent of a pro rata share of the benefit which may accrue to you as a result of the defense undertaken by us. This reinsurance shall be payable directly by us to you or to your domiciliary liquidator, receiver, conservator or statutory successor, except as expressly required otherwise by applicable insurance law.