LOSS CORRIDOR Clause Samples
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LOSS CORRIDOR. As respects Policies with effective or renewal dates during the Contract Year, the Company shall retain, under this Contract and the Companion Contract, 100% of Losses Incurred above a Loss Ratio of 71.5%. The Company will remain liable for such Losses Incurred unless the Losses Incurred exceeds a Loss Ratio of 93.0%, at which point the Reinsurer's liability will resume (based on its pro rata share) for any Losses Incurred in excess of an 93.0% Loss Ratio. Said additional retention is called the "Loss Corridor." The Loss Corridor is not subject to any effect from a deficit carryforward from prior Contract Years.
LOSS CORRIDOR. In addition, if the ceded Loss Ratio for any Treaty Year exceeds sixty-five percent (65.0%), the Company will retain Losses and Loss Adjustment Expense for which the Reinsurers would otherwise be liable (but for this Loss Corridor provision) equal to five per cent (5.0%) of Gross Net Earned Premium.
LOSS CORRIDOR. A. Notwithstanding the provisions of the Retention and Limit Article, the Company shall retain the amount by which Losses Incurred exceed 90% of ceded Gross Net Earned Premium Income, subject to a maximum additional retention equal to 15% of ceded Gross Net Earned Premium Income.
B. Said additional retention shall be called the “Loss Corridor,” and shall be calculated and paid (based on paid losses, Legal Defense Costs, loss adjustment expenses, Extra Contractual Obligations, Loss in Excess of Policy Limits, and assessments) concurrently with contingent commission calculations.