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.

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.