Common use of LIABILITY OF THE FHCF Clause in Contracts

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company, with respect to each Loss Occurrence commencing during the Contract Year for the "Reimbursement Percentage" elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company's Retention, as adjusted pursuant to Article V(28), plus 5% of the reimbursed losses for Loss Adjustment Expense Reimbursement. (2) The Reimbursement Percentage will be 45% or 75% or 90%, at the Company's option as elected under Article XVIII. (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering this contract year shall not exceed the limit set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding loss reimbursement calculations, see section (3)(c) of Article X herein. (4) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. FHCF-2006K Rule 19-8.010 F.A.C. (5) After the end of the calendar year, the SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Weekly a statement of the FHCF's estimated Borrowing Capacity and the projected Balance of the Fund as of December 31. (6) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to raise through the issuance of revenue bonds or other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1., Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.). If Reimbursement Premiums, earnings thereon, or amounts collected as part of the premium that are attributable to the rapid cash buildup factor are used for debt service in the event of a temporary shortfall in the collection of emergency assessments, then the amount of the Premiums, earnings thereon, or amounts collected as part of the premium that are attributable to the rapid cash buildup factor so used will be reimbursed to the SBA without interest when sufficient emergency assessments are received.

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company, with respect to each Loss Occurrence commencing during the Contract Year for the "Reimbursement Percentage" elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company's Retention, as adjusted pursuant to Article V(28), plus 5% of the reimbursed losses for Loss Adjustment Expense Reimbursement. (2) The Reimbursement Percentage will be 45% or 75% or 90%, at the Company's option as elected under Article XVIIIARTICLE XVIII herein. (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering this contract year shall not exceed the limit set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics regarding loss reimbursement calculations, see section (3)(c) of Article ARTICLE X herein. (4) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. FHCF-2006K Rule 19-8.010 F.A.C.. (5) After the end of the each calendar year, the SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Weekly a statement of the FHCF's estimated Borrowing Capacity and the projected Balance of the Fund as of December 31. (6) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to raise through the issuance of revenue bonds or other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1., Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.). If Reimbursement Premiums, earnings thereon, or amounts collected as part of the premium that are attributable to the rapid cash buildup factor Premiums are used for debt service in the event of a temporary shortfall in the collection of emergency assessments, then the amount of the Premiums, earnings thereon, or amounts collected as part of the premium that are attributable to the rapid cash buildup factor Premiums so used will be reimbursed to the SBA without interest when sufficient emergency assessments are received.

LIABILITY OF THE FHCF. (1) The SBA shall reimburse the Company, with respect to each Loss Occurrence commencing during the Contract Year for the "“Reimbursement Percentage" ” elected, this percentage times the amount of Ultimate Net Loss paid by the Company in excess of the Company's ’s Retention, as adjusted pursuant to Article V(28), plus 5% of the reimbursed losses for Loss Adjustment Expense Reimbursement. (2) The Reimbursement Percentage will be 45% or 75% or 90%, at the Company's ’s option as elected under Article XVIII.. 2 Rule 19-8.010 F.A.C. (3) The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering this contract year Contract Year shall not exceed the limit set forth under Section 215.555(4)(c)1215.555(4)(c)l., Florida Statutes. For specifics regarding loss reimbursement calculations, see section (3)(c) of Article X herein. (4) Upon the occurrence of a Covered Event, the SBA shall evaluate the potential losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company for its losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s mandatory coverage. The SBA shall make adjustments to the Projected Payout Multiple in order to reimburse the optional coverage based on the SBA’s ongoing evaluation of potential losses and capacity. (5) Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. FHCF-2006K Rule 19-8.010 F.A.C.. (56) After the end of the calendar year, the SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the Florida Administrative Weekly a statement of the FHCF's ’s estimated Borrowing Capacity and the projected Balance of the Fund as of December 31. (67) The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA is able to raise through the issuance of revenue bonds or other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1215.555(4)(c)l., Florida Statutes. The obligations and the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.). If Reimbursement Premiums, earnings thereon, or amounts collected as part of the premium that are attributable to the rapid cash buildup factor are used for debt service in the event of a temporary shortfall in the collection of emergency assessments, then the amount of the Premiums, earnings thereon, or amounts collected as part of the premium that are attributable to the rapid cash buildup factor so used will be reimbursed to the SBA without interest when sufficient emergency assessments are received.