Common use of Litigated Claims Clause in Contracts

Litigated Claims. a. The CEDING COMPANY shall immediately notify the REINSURER in writing of the CEDING COMPANY's intention to contest, compromise or litigate a claim. If the REINSURER agrees, within fifteen (15) business days following its receipt of the written notice from the CEDING COMPANY, to participate in the contest, compromise or litigation of the claim, the REINSURER agrees that it will pay its share of any settlement up to the maximum that would have been payable under the specified policy had there been no controversy. The REINSURER shall have the right to utilize legal counsel, accounting experts and such other experts and personnel as the REINSURER in its sole discretion chooses and, under such circumstances, the REINSURER shall not be responsible for the payment of any "unusual expenses" (as defined in paragraph 5 of this Article). However, if the REINSURER does not elect to use counsel or other experts of its choosing, then the REINSURER shall pay its proportionate share of all "usual expenses" and "unusual expenses" (each as defined in paragraph 5 of this Article) of the contest, compromise or litigation. b. The REINSURER's failure to notify the CEDING COMPANY of the REINSURER's intent to participate in the contest, compromise or litigation of a claim within the required fifteen (15) day notice period shall be deemed a declination by the REINSURER to participate. The REINSURER shall thereafter discharge all of its liability with respect to any contested, compromised or litigated claim by paying to the CEDING COMPANY the REINSURER's proportionate share of the full amount then current and at risk under the reinsurance cession with respect to such claim. Upon such discharge, the REINSURER shall not be liable for any portion of any usual expenses or unusual expenses incurred with respect to such claim, nor shall the REINSURER share in any reduced settlement thereof.

Litigated Claims. a. The CEDING COMPANY shall immediately notify the REINSURER in writing of the CEDING COMPANY's ’s intention to contest, compromise or litigate a claim. If the REINSURER agrees, within fifteen (15) business days following its receipt of the written notice from the CEDING COMPANY, to participate in the contest, compromise or litigation of the claim, the REINSURER agrees that it will pay its share of any settlement up to the maximum that would have been payable under the specified policy had there been no controversy. The REINSURER shall have the right to utilize legal counsel, accounting experts and such other experts and personnel as the REINSURER in its sole discretion chooses and, under such circumstances, the REINSURER shall not be responsible for the payment of any "“unusual expenses" ” (as defined in paragraph 5 of this Article). However, if the REINSURER does not elect to use counsel or other experts of its choosing, then the REINSURER shall pay its proportionate share of all "“usual expenses" ” and "“unusual expenses" ” (each as defined in paragraph 5 of this Article) of the contest, compromise or litigation. b. The REINSURER's ’s failure to notify the CEDING COMPANY of the REINSURER's ’s intent to participate in the contest, compromise or litigation of a claim within the required fifteen (15) day notice period shall be deemed a declination by the REINSURER to participate. The REINSURER shall thereafter discharge all of its liability with respect to any contested, compromised or litigated claim by paying to the CEDING COMPANY the REINSURER's ’s proportionate share of the full amount then current and at risk under the reinsurance cession with respect to such claim. Upon such discharge, the REINSURER shall not be liable for any portion of any usual expenses or unusual expenses incurred with respect to such claim, nor shall the REINSURER share in any reduced settlement thereof.

Litigated Claims. a. The CEDING COMPANY Ceding Company shall immediately notify the REINSURER in writing MARC of the CEDING COMPANY's intention any litigation related to contest, compromise or litigate a claim. If the REINSURER agrees, within fifteen (15) business days following claim under a reinsured Policy upon its receipt of the written notice from initial complaint. Immediately following such notification, the CEDING COMPANYCeding Company shall provide MARC with all relevant information related to the claim in the litigation. Within ten (10) business days after receipt of all relevant information, MARC shall notify the Ceding Company in writing of its decision to participate or to decline to participate in the contest, compromise or litigation of the claim, the REINSURER agrees that it will pay its share of any settlement up litigation. If MARC fails to the maximum that would have been payable under the specified policy had there been no controversy. The REINSURER shall have the right to utilize legal counsel, accounting experts and provide such other experts and personnel as the REINSURER in its sole discretion chooses and, under such circumstances, the REINSURER shall not be responsible for the payment of any "unusual expenses" (as defined in paragraph 5 of this Article). However, if the REINSURER does not elect to use counsel or other experts of its choosingnotification, then the REINSURER MARC shall pay its proportionate share of all "usual expenses" and "unusual expenses" (each as defined in paragraph 5 of this Article) of the contest, compromise or litigation. b. The REINSURER's failure be deemed to notify the CEDING COMPANY of the REINSURER's intent have elected to participate in the contestlitigation. If MARC declines to participate in the litigation, compromise or litigation of a claim within the required fifteen (15) day notice period MARC shall be deemed a declination by the REINSURER to participate. The REINSURER shall thereafter discharge all of satisfy its liability obligation with respect to any contested, compromised or litigated such claim by paying to the CEDING COMPANY Ceding Company its full share of the REINSURER's reinsurance benefit, including accrued Statutory Interest as of the date on which MARC declines to participate in the litigation, along with its proportionate share of Contestable Claims Expenses, and the Ceding Company shall accept such payment as payment in full for MARC’s liability regarding such claim. If MARC declines to participate in the litigation, MARC shall not share in any reduction or increase in liability. If MARC agrees to participate in the litigation, MARC shall reimburse the Ceding Company for its proportionate share of the full amount then current Litigation Expenses (as defined below), and at risk under MARC shall share in any such reduction or increase in liability related to the reinsurance cession outcome of such litigation. MARC’s participation in any such increase or reduction will be determined in accordance with MARC’s proportionate share. Litigation Expenses shall be submitted to MARC on a monthly basis. Throughout the litigation, the Ceding Company shall provide MARC with all information related to the litigation including, but not limited to, pleadings, interrogatories and depositions. If MARC discovers information that causes MARC to disagree with the Ceding Company’s course of action with respect to such a litigated claim. Upon such discharge, then MARC may opt out of the REINSURER shall litigation, pay its full share of the reinsurance benefit plus its proportionate share of Statutory Interest and Litigation Expenses incurred as of the opt out date, and incur no further liability related to the claim including, but not be liable limited to, any liability for any portion of further Litigation Expenses. In no event shall MARC reimburse the Ceding Company for any usual expenses Statutory Penalties, Compensatory Damages or unusual expenses incurred with respect to such claim, nor shall the REINSURER share in any reduced settlement thereofPunitive Damages.