Common use of Interest Penalty Clause in Contracts

Interest Penalty. (LM-01400-2005.08.24-A) (AM) A. The interest amounts provided for in this Article shall apply to the Subscribing Reinsurer or to the Company in the following circumstances: Effective: January 1, 2009 Page 17 of 44 2009 Agency Markets Workers’ Compensation Catastrophe Reinsurance Contract 1. If a loss payment owed by the Subscribing Reinsurer to the Company is not received within 45 calendar days following the date of presentation to the Subscribing Reinsurer of information necessary to approve payment of the claim, and/or 2. If any premium payment owed by the Company to the Subscribing Reinsurer is not received within 45 calendar days following the date on which payment is due, and/or 3. If any premium adjustment, agreed by either party to the other, is not received within 150 calendar days following the expiry or anniversary of this Contract, and/or 4. If any return of premiums, commissions, profit sharing, or any amounts not provided in subparagraphs 1, 2, and 3 above, are not received in accordance with the date specified in this Contract or if no date is specified, within 90 calendar days following the date the debtor party received the billing. B. Failure by the Subscribing Reinsurer or Company to comply with their respective payment obligations within the time periods as herein provided shall, as of that date, be subject to an interest payment computed by multiplying the amount due by a variable rate consisting of the U.S. Prime Rate as published in the Eastern Edition of The Wall Street Journal on the first day of the calendar month in which the amount became past due, plus 2%. The variable rate shall be adjusted monthly thereafter to equal the U.S. Prime Rate as published in the Eastern Edition of The Wall Street Journal on the first day of each successive month during which the amount due remains unpaid, plus 2%. The product shall then be multiplied by 1/365 for each day after the due date that the amount due and the interest amount remain unpaid. Any interest that occurs pursuant to this Article shall be calculated by the party to which it is owed. C. The validity of any claim or payment may be contested under the provisions of this Contract. If the debtor party prevails in an arbitration or any other proceeding with respect to the amounts in dispute, there shall be no interest penalty due. If the creditor party wholly or partially prevails on any of the amounts in dispute, the interest penalty shall be awarded as outlined above. Such interest penalty shall be calculated from the date the monies were due and owing to the date of resolution of the arbitration or proceeding, and shall be payable as of the date of resolution of the arbitration or proceeding. D. If a Subscribing Reinsurer advances the entire or partial payment of any claim it is contesting, and wholly or partially prevails in the contest, the Company shall promptly return the applicable amount of such payment. The arbitrator(s) hearing such dispute shall determine if interest shall be added to the amount returned by the Company. Effective: January 1, 2009 Page 18 of 44 2009 Agency Markets Workers’ Compensation Catastrophe Reinsurance Contract E. Any interest owing pursuant to this Article may be waived by the party to which it is owed. Further, any interest calculated pursuant to this Article that is $100 or less shall be waived. Any waiver of any interest pursuant to this paragraph, however, shall not affect the waiving party’s right to claim and/or pursue interest for any other failure by the other party to make payment when due under this Article.

Interest Penalty. (LM-01400-2005.08.24-A) (AM) A. The interest amounts provided for in this Article shall apply to the Subscribing Reinsurer or to the Company in the following circumstances: Effective: January 1, 2009 Page 17 of 44 2009 Agency Markets Workers’ Compensation Catastrophe Reinsurance Contract: 1. If a loss payment owed by the Subscribing Reinsurer to the Company is not received within 45 forty five (45) calendar days following the date of presentation to the Subscribing Reinsurer of information necessary to approve payment of the claim, and/or 2. If any premium payment owed by the Company to the Subscribing Reinsurer is not received within 45 forty five (45) calendar days following the date on which payment is due, and/orand/or Effective: January 1, 2010 Page 13 of 30 Workers’ Compensation Catastrophe Excess of Loss Reinsurance Addendum 2 No. 0100300-SUM08 3. If any premium adjustment, agreed by either party Party to the other, is not received within 150 one hundred fifty (150) calendar days following the expiry or anniversary of this Contract, and/or 4. If any return of premiums, commissions, profit sharing, or any amounts not provided in subparagraphs 1, 2, and 3 above, are not received in accordance with the date specified in this Contract or if no date is specified, within 90 ninety (90) calendar days following the date the debtor party Party received the billing. B. Failure by the Subscribing Reinsurer or Company to comply with their respective payment obligations within the time periods as herein provided shall, as of that date, be subject to an interest payment computed by multiplying the amount due by a variable rate consisting of the U.S. Prime Rate as published in the Eastern Edition of The Wall Street Journal on the first day of the calendar month in which the amount became past due, plus two percent (2%). The variable rate shall be adjusted monthly thereafter to equal the U.S. Prime Rate as published in the Eastern Edition of The Wall Street Journal on the first day of each successive month during which the amount due remains unpaid, plus two percent (2%). The product shall then be multiplied by 1/365 for each day after the due date that the amount due and the interest amount remain unpaid. Any interest that occurs pursuant to this Article shall be calculated by the party Party to which it is owed. C. The validity of any claim or payment may be contested under the provisions of this Contract. If the debtor party Party prevails in an arbitration or any other proceeding with respect to the amounts in dispute, there shall be no interest penalty due. If the creditor party Party wholly or partially prevails on any of the amounts in dispute, the interest penalty shall be awarded as outlined above. Such interest penalty shall be calculated from the date the monies were due and owing to the date of resolution of the arbitration or proceeding, and shall be payable as of the date of resolution of the arbitration or proceeding. D. If a Subscribing Reinsurer advances the entire or partial payment of any claim it is contesting, and wholly or partially prevails in the contest, the Company shall promptly return the applicable amount of such payment. The arbitrator(s) hearing such dispute shall determine if interest shall be added to the amount returned by the Company. Effective: January 1, 2009 Page 18 of 44 2009 Agency Markets Workers’ Compensation Catastrophe Reinsurance Contract. E. Any interest owing pursuant to this Article may be waived by the party Party to which it is owed. Further, any interest calculated pursuant to this Article that is one hundred dollars ($100 100) or less shall be waived. Any waiver of any interest pursuant to this paragraph, however, shall not affect the waiving partyParty’s right to claim and/or pursue interest for any other failure by the other party Party to make payment when due under this Article.

Interest Penalty. (LM-01400-2005.08.24-A) (AM) A. The interest amounts provided for in this Article shall apply to the Subscribing Reinsurer or to the Company in the following circumstances: Effective: January 1, 2009 Page 17 of 44 2009 Agency Markets Workers’ Compensation Catastrophe Reinsurance Contract: 1. A. If a loss payment owed by the Subscribing Reinsurer to the Company is not received within 45 calendar days following the date of presentation to the Subscribing Reinsurer of information necessary to approve payment of the claim, and/or 2. B. If any premium payment owed by the Company to the Subscribing Reinsurer is not received within 45 calendar days following the date on which payment is due, and/or 3. C. If any premium adjustment, agreed by either party Party to the other, is not received within 150 calendar days following the expiry or anniversary of this Contract, and/or 4. D. If any return of premiums, commissions, profit sharing, or any amounts not provided in subparagraphs 1paragraphs A, 2B, and 3 C above, are not received in accordance with the date specified in this Contract or if no date is specified, within 90 calendar days following the date the debtor party Party received the billing. B. . Failure by the Subscribing Reinsurer or Company to comply with their respective payment obligations within the time periods as herein provided shall, as of that date, be subject to an interest payment computed by multiplying the amount due by a variable rate consisting of the U.S. Prime Rate as published in the Eastern Edition of The Wall Street Journal on the first day of the calendar month in which the amount became past due, plus 2%. The variable rate shall be adjusted monthly thereafter to equal the U.S. Prime Rate as published in the Eastern Edition of The Wall Street Journal on the first day of each successive month during which the amount due remains unpaid, plus 2%. The product shall then be multiplied by 1/365 for each day after the due date that the amount due and the interest amount remain unpaid. Any interest that occurs pursuant to this Article shall be calculated by the party Party to which it is owed. C. . The validity of any claim or payment may be contested under the provisions of this Contract. If the debtor party Party prevails in an arbitration or any other proceeding with respect to the amounts in dispute, there shall be no interest penalty due. If the creditor party Party wholly or partially prevails on any of the amounts in dispute, the interest penalty shall be awarded as outlined above. Such interest penalty shall be calculated from the date the monies were due and owing to the date of resolution of the arbitration or proceeding, and shall be payable as of the date of resolution of the arbitration or proceeding. D. . If a Subscribing Reinsurer advances the entire or partial payment of any claim it is contesting, and wholly or partially prevails in the contest, the Company shall promptly return the applicable amount of such payment. The arbitrator(s) hearing such dispute shall determine if interest shall be added to the amount returned by the Company. Effective: January 1, 2009 Page 18 of 44 2009 Agency Markets Workers’ Compensation Catastrophe Reinsurance Contract E. Any interest owing pursuant to this Article may be waived by the party Party to which it is owed. Further, any interest calculated pursuant to this Article that is $100 1,000 or less shall be waived. Any waiver of any interest pursuant to this paragraph, however, shall not affect the waiving partyParty’s right to claim and/or pursue interest for any other failure by the other party Party to make payment when due under this Article.

Interest Penalty. (LM-01400-2005.08.24-A) (AM) A. The interest amounts provided for in this Article shall apply to the Subscribing Reinsurer or to the Company in the following circumstances: Effective: January 1, 2009 Page 17 of 44 2009 Agency Markets Workers’ Compensation Catastrophe Reinsurance Contract: 1. If a loss payment owed by the Subscribing Reinsurer to the Company is not received within 45 calendar days following the date of presentation to the Subscribing Reinsurer of information necessary to approve payment of the claim, and/or; 2. If any premium payment owed by the Company to the Subscribing Reinsurer is not received within 45 calendar days following the date on which payment is due, and/or; 3. If any premium adjustment, agreed by either party to the other, is not received within 150 calendar days following the expiry or anniversary of this Contract, and/or; 4. If any return of premiums, commissions, profit sharing, or any amounts not provided in subparagraphs 1, 2, and 3 above, are not received in accordance with the date specified in this Contract or if no date is specified, within 90 calendar days following the date the debtor party received the billing. B. Failure by the Subscribing Reinsurer or Company to comply with their respective payment obligations within the time periods as herein provided shall, as of that date, be subject to an interest payment computed by multiplying the amount due by a variable rate consisting of the U.S. Prime Rate as published in the Eastern Edition of The Wall Street Journal on the first day of the calendar month in which the amount became past due, plus 2%. The variable rate shall be adjusted monthly thereafter to equal the U.S. Prime Rate as published in the Eastern Edition of The Wall Street Journal on the first day of each successive month during which the amount due remains unpaid, plus 2%. The product shall then be multiplied by 1/365 for each day after the due date that the amount due and the interest amount remain unpaid. Any interest that occurs pursuant to this Article shall be calculated by the party to which it is owed. C. The validity of any claim or payment may be contested under the provisions of this Contract. If the debtor party prevails in an arbitration or any other proceeding with respect to the amounts in dispute, there shall be no interest penalty due. If the creditor party wholly or partially prevails on any of the amounts in dispute, the interest penalty shall be awarded as outlined above. Such interest penalty shall be calculated from the date the monies were due and owing to the date of resolution of the arbitration or proceeding, and shall be payable as of the date of resolution of the arbitration or proceeding.. Effective: January 1, 2010 Page 17 of 37 2010 Agency Markets Workers’ Compensation Catastrophe Reinsurance Contract No. 2010300 D. If a Subscribing Reinsurer advances the entire or partial payment of any claim it is contesting, and wholly or partially prevails in the contest, the Company shall promptly return the applicable amount of such payment. The arbitrator(s) hearing such dispute shall determine if interest shall be added to the amount returned by the Company. Effective: January 1, 2009 Page 18 of 44 2009 Agency Markets Workers’ Compensation Catastrophe Reinsurance Contract. E. Any interest owing pursuant to this Article may be waived by the party to which it is owed. Further, any interest calculated pursuant to this Article that is $100 or less shall be waived. Any waiver of any interest pursuant to this paragraph, however, shall not affect the waiving party’s right to claim and/or pursue interest for any other failure by the other party to make payment when due under this Article.

Interest Penalty. (LM-01400-2005.08.24-A) (AM) A. The interest amounts provided for in this Article shall apply to the Subscribing Reinsurer or to the Company in the following circumstances: Effective: January 1, 2009 Page 17 of 44 2009 Agency Markets Workers’ Compensation Catastrophe Reinsurance Contract: 1. If a loss payment owed by the Subscribing Reinsurer to the Company is not received within 45 calendar days following the date of presentation to the Subscribing Reinsurer of information necessary to approve payment of the claim, and/or 2. If any premium payment owed by the Company to the Subscribing Reinsurer is not received within 45 calendar days following the date on which payment is due, and/or 3. If any premium adjustment, agreed by either party to the other, is not received within 150 calendar days following the expiry or anniversary of this Contract, and/or 4. If any return of premiums, commissions, profit sharing, or any amounts not provided in subparagraphs 1, 2, and 3 above, are not received in accordance with the date specified in this Contract or if no date is specified, within 90 calendar days following the date the debtor party received the billing. B. Failure by the Subscribing Reinsurer or Company to comply with their respective payment obligations within the time periods as herein provided shall, as of that date, be subject to an interest payment computed by multiplying the amount due by a variable rate consisting of the U.S. Prime Rate as published in the Eastern Edition of The Wall Street Journal on the first day of the calendar month in which the amount became past due, plus 2%. The variable rate shall be adjusted monthly thereafter to equal the U.S. Prime Rate as published in the Eastern Edition of The Wall Street Journal on the first day of each successive month during which the amount due remains unpaid, plus 2%. The product shall then be multiplied by 1/365 for each day after the due date that the amount due and the interest amount remain unpaid. Any interest that occurs pursuant to this Article shall be calculated by the party to which it is owed. C. The validity of any claim or payment may be contested under the provisions of this Contract. If the debtor party prevails in an arbitration or any other proceeding with respect to the amounts in dispute, there shall be no interest penalty due. If the creditor party wholly or partially prevails on any of the amounts in dispute, the interest penalty shall be awarded as outlined above. Such interest penalty shall be calculated from the date the monies were due and owing to the date of resolution of the arbitration or proceeding, and shall be payable as of the date of resolution of the arbitration or proceeding. D. If a Subscribing Reinsurer advances the entire or partial payment of any claim it is contesting, and wholly or partially prevails in the contest, the Company shall promptly return the applicable amount of such payment. The arbitrator(s) hearing such dispute shall determine if interest shall be added to the amount returned by the Company. Effective: January 1, 2009 Page 18 of 44 2009 Agency Markets Workers’ Compensation Catastrophe Reinsurance Contract. E. Any interest owing pursuant to this Article may be waived by the party to which it is owed. Further, any interest calculated pursuant to this Article that is $100 or less shall be waived. Any waiver of any interest pursuant to this paragraph, however, shall not affect the waiving party’s right to claim and/or pursue interest for any other failure by the other party to make payment when due under this Article.. Catastrophe Excess of Loss Reinsurance Addendum 4 No. 0100300-SUM09

Interest Penalty. (LM-01400-2005.08.24-A) (AM) A. The interest amounts provided for in this Article shall apply to the Subscribing Reinsurer or to the Company in the following circumstances: Effective: January 1, 2009 Page 17 of 44 2009 Agency Markets Workers’ Compensation Catastrophe Reinsurance Contract: 1. A. If a loss payment owed by the Subscribing Reinsurer to the Company is not received within 45 calendar days following the date of presentation to the Subscribing Reinsurer of information necessary to approve payment of the claim, and/or 2. B. If any premium payment owed by the Company to the Subscribing Reinsurer is not received within 45 calendar days following the date on which payment is due, and/or 3. C. If any premium adjustment, agreed by either party Party to the other, is not received within 150 calendar days following the expiry or anniversary of this Contract, and/or 4. D. If any return of premiums, commissions, profit sharing, or any amounts not provided in subparagraphs 1paragraphs A, 2B, and 3 C above, are not received in accordance with the date specified in this Contract or if no date is specified, within 90 calendar days following the date the debtor party Party received the billing. B. . Failure by the Subscribing Reinsurer or Company to comply with their respective payment obligations within the time periods as herein provided shall, as of that date, be subject to an interest payment computed by multiplying the amount due by a variable rate consisting of the U.S. Prime Rate as published in the Eastern Edition of The Wall Street Journal on the first day of the calendar month in which the amount became past due, plus 2%. The variable rate shall be adjusted monthly thereafter to equal the U.S. Prime Rate as published in the Eastern Edition of The Wall Street Journal on the first day of each successive month during which the amount due remains unpaid, plus 2%. The product shall then be multiplied by 1/365 for each day after the due date that the amount due and the interest amount remain unpaid. Any interest that occurs pursuant to this Article shall be calculated by the party Party to which it is owed. C. . The validity of any claim or payment may be contested under the provisions of this Contract. If the debtor party Party prevails in an arbitration or any other proceeding with respect to the amounts in dispute, there shall be no interest penalty due. If the creditor party Party wholly or partially prevails on any of the amounts in dispute, the interest penalty shall be awarded as outlined above. Such interest penalty shall be calculated from the date the monies were due and owing to the date of resolution of the arbitration or proceeding, and shall be payable as of the date of resolution of the arbitration or proceeding. D. . 2007 Workers’ Compensation Clash Excess of Loss Contract — January 1, 2007 If a Subscribing Reinsurer advances the entire or partial payment of any claim it is contesting, and wholly or partially prevails in the contest, the Company shall promptly return the applicable amount of such payment. The arbitrator(s) hearing such dispute shall determine if interest shall be added to the amount returned by the Company. Effective: January 1, 2009 Page 18 of 44 2009 Agency Markets Workers’ Compensation Catastrophe Reinsurance Contract E. Any interest owing pursuant to this Article may be waived by the party Party to which it is owed. Further, any interest calculated pursuant to this Article that is $100 1,000 or less shall be waived. Any waiver of any interest pursuant to this paragraph, however, shall not affect the waiving partyParty’s right to claim and/or pursue interest for any other failure by the other party Party to make payment when due under this Article.

Interest Penalty. (LM-01400-2005.08.24-A) (AM) A. The interest amounts provided for in this Article shall apply to the Subscribing Reinsurer or to the Company in the following circumstances: Effective: January 1, 2009 Page 17 of 44 2009 Agency Markets Workers’ Compensation Catastrophe Reinsurance Contract: 1. If a loss payment owed by the Subscribing Reinsurer to the Company is not received within 45 calendar days following the date of presentation to the Subscribing Reinsurer of information necessary to approve payment of the claim, and/or; 2. If any premium payment owed by the Company to the Subscribing Reinsurer is not received within 45 calendar days following the date on which payment is due, and/or; 3. If any premium adjustment, agreed by either party to the other, is not received within 150 calendar days following the expiry or anniversary of this Contract, and/or; 4. If any return of premiums, commissions, profit sharing, or any amounts not hot provided in subparagraphs 1, 2, and 3 above, are not received in accordance with the date specified in this Contract or if no date is specified, within 90 calendar days following the date the debtor party received the billing. B. Failure by the Subscribing Reinsurer or Company to comply with their respective payment obligations within the time periods as herein provided shall, as of that date, be subject to an interest payment computed by multiplying the amount due by a variable rate consisting of the U.S. Prime Rate as published in the Eastern Edition of The Wall Street Journal on the first day of the calendar month in which the amount became past due, plus 2%. The variable rate shall be adjusted monthly thereafter to equal the U.S. Prime Rate as published in the Eastern Edition of The Wall Street Journal on the first day of each successive month during which the amount due remains unpaid, plus 2%. The product shall then be multiplied by 1/365 for each day after the due date that the amount due and the interest amount remain unpaid. Any interest that occurs pursuant to this Article shall be calculated by the party to which it is owed. C. The validity of any claim or payment may be contested under the provisions of this Contract. If the debtor party prevails in an arbitration or any other proceeding with respect to the amounts in dispute, there shall be no interest penalty due. If if the creditor party wholly or partially prevails on any of the amounts in dispute, the interest penalty shall be awarded as outlined above. Such interest penalty shall be calculated from the date the monies were due and owing to the date of resolution of the arbitration or proceeding, and shall be payable as of the date of resolution of the arbitration or proceeding.. Effective: January 1, 2010 2010 Agency Markets Workers’ Compensation Catastrophe Reinsurance Contract No. 2010300 D. If a Subscribing Reinsurer advances the entire or partial payment of any claim it is contesting, and wholly or partially prevails in the contest, the Company shall promptly return the applicable amount of such payment. The arbitrator(s) hearing such dispute shall determine if interest shall be added to the amount returned by the Company. Effective: January 1, 2009 Page 18 of 44 2009 Agency Markets Workers’ Compensation Catastrophe Reinsurance Contract. E. Any interest owing pursuant to this Article may be waived by the party to which it is owed. Further, any interest calculated pursuant to this Article that is $100 or less shall be waived. Any waiver of any interest pursuant to this paragraph, however, shall not affect the waiving party’s right to claim and/or pursue interest for any other failure by the other party to make payment when due under this Article.