Common use of LOSS FUNDING Clause in Contracts

LOSS FUNDING. This Article is only applicable to CNA if it cannot qualify for credit by the State, meaning the state, province or Federal authority having jurisdiction over IGF's loss reserves. As regards policies issued by the IGF coming within the scope of this Agreement, the IGF agrees that when it shall file with the insurance department or set up on its books reserves for losses covered hereunder which it shall be required to set up by law it will forward to the CNA a statement showing the proportion of such loss reserves which is applicable to them. The CNA hereby agrees that it will apply for and secure delivery to the IGF a clean irrevocable and unconditional Letter of Credit issued by a bank chosen by the CNA and acceptable to the appropriate insurance authorities, in an amount equal to the CNA's proportion of the loss reserves in respect of known outstanding losses that have been reported to the CNA and allocated loss expenses relating thereto as shown in the statement prepared by the IGF. Under no circumstances shall any amount relating to reserves in respect of losses or loss expenses Incurred But Not Reported be included in the amount of the Letter of Credit. The Letter of Credit shall be "Evergreen" and shall be issued for a period of not less than one year, and shall be automatically extended for one year from its date of expiration or any future expiration date unless thirty (30) days prior to any expiration date, the bank shall notify the IGF by certified or registered mail that it elects not to consider the Letter of Credit extended for any additional period. The IGF, or its successors in interest, undertakes to use and apply any amounts which it may draw upon such Credit pursuant to the terms of the Agreement under which the Letter of Credit is held, and for the following purposes only: To pay CNA's share or to reimburse IGF for CNA's share of any liability for loss reinsured by this Agreement, the payment of which has been agreed by CNA and which has not otherwise been paid. To make refund of any sum which is in excess of the actual amount required to pay CNA's share of any liability reinsured by this Agreement. In the event of expiration of the Letter of Credit as provided for above, to establish deposit of CNA's share of known and reported outstanding losses and allocated loss expenses relating thereto under this Agreement. Such cash deposit shall be held in an interest bearing account separate from IGF's other assets, and interest thereon shall accrue to the benefit of CNA. It is understood and agreed that this procedure will be implemented only in exceptional circumstances and that, if it is implemented, IGF will ensure that a rate of interest is obtained for CNA on such a deposit account that is at least equal to the rate which would have been paid by Citibank N.A. in New York, and further that IGF will account to CNA on an annual basis for all interest accruing on the cash deposit account for the benefit of CNA. The bank chosen for the issuance of the Letter of Credit shall have no responsibility whatsoever in connection with the propriety of withdrawals made by IGF or the disposition of funds withdrawn, except to ensure that withdrawals are made only upon the order of properly authorized representatives of IGF. At annual intervals, or more frequently as agreed but never more frequently than semiannually, IGF shall prepare a specific statement, for the sole purpose of amending the Letter of Credit, of CNA's share of known and reported outstanding losses and allocated loss expenses relating thereto. If the statement shows that CNA's share of such losses and allocated loss expenses exceeds the balance of credit as of the statement date, CNA shall, within thirty (30) days after receipt of notice of such excess, secure delivery to IGF of an amendment of the Letter of Credit increasing the amount of credit by the amount of such difference. If, however, the statement shows that CNA's share of known and reported outstanding losses plus allocated loss expenses relating thereto is less than the balance of credit as of the statement date, IGF shall, within thirty (30) days after receipt of written request from CNA, release such excess credit by agreeing to secure an amendment to the Letter of Credit reducing the amount of credit available by the amount of such excess credit.

LOSS FUNDING. This Article is only applicable to CNA if it those Reinsurers who cannot qualify for credit by the State, meaning the state, province or Federal authority having jurisdiction over IGFthe Company's loss reserves. As regards policies issued issue by the IGF Company coming within the scope of this AgreementContract, the IGF Company agrees that when it shall file with the insurance department or set up on its books reserves for losses covered hereunder which it shall be required to set up by law it will forward to the CNA Reinsurer a statement showing the proportion of such loss reserves which is applicable to them. The CNA Reinsurer hereby agrees that it will apply for and secure delivery to the IGF Company a clean irrevocable and unconditional Letter of Credit issued by a bank chosen by the CNA Reinsurer and acceptable to the appropriate insurance authorities, in an amount equal to the CNAReinsurer's proportion of the loss reserves in respect of known outstanding losses that have been reported to the CNA Reinsurer and allocated loss expenses relating thereto as shown in the statement prepared by the IGFCompany. Under no circumstances shall any amount relating to reserves in respect of losses or loss expenses Incurred But Not Reported be included in the amount of the Letter of Credit. The Letter of Credit shall be "Evergreen" and shall be issued for a period of not less than one year, and shall be automatically extended for one year from its date of expiration or any future expiration date unless thirty (30) days prior to any expiration date, the bank shall notify the IGF Company by certified or registered mail that it elects not to consider the Letter of Credit extended for any additional period. The IGFCompany, or its successors in interest, undertakes to use and apply any amounts which it may draw upon such Credit pursuant to the terms of the Agreement Contract under which the Letter of Credit is held, and for the following purposes only: To pay CNAthe Reinsurer's share or to reimburse IGF the Company for CNAthe Reinsurer's share of any liability for loss reinsured by this AgreementContract, the payment of which has been agreed by CNA the Reinsurer and which has not otherwise been paid. To make refund of any sum which is in excess of the actual amount required to pay CNAthe Reinsurer's share of any liability reinsured by this AgreementContract. In the event of expiration of the Letter of Credit as provided for above, to establish deposit of CNAthe Reinsurer's share of known and reported outstanding losses and allocated loss expenses relating thereto under this AgreementContract. Such cash deposit shall be held in an interest bearing account separate from IGFthe Company's other assets, and interest thereon shall accrue to the benefit of CNAthe Reinsurer. It is understood and agreed that this procedure will be implemented only in exceptional circumstances and that, if it is implemented, IGF the Company will ensure that a rate of interest is obtained for CNA the Reinsurer on such a deposit account that is at least equal to the rate which would have been paid by Citibank N.A. in New York, and further that IGF the Company will account to CNA the Reinsurer on an annual basis for all interest accruing on the cash deposit account for the benefit of CNAthe Reinsurer. The bank chosen for the issuance of the Letter of Credit shall have no responsibility whatsoever in connection with the propriety of withdrawals made by IGF the Company or the disposition of funds withdrawn, except to ensure that withdrawals are made only upon the order of properly authorized representatives of IGFthe Company. At annual intervals, or more frequently as agreed but never more frequently than semiannually, IGF the Company shall prepare a specific statement, for the sole purpose of amending the Letter of Credit, of CNAthe Reinsurer's share of known and reported outstanding losses and allocated loss expenses relating thereto. If the statement shows that CNAthe Reinsurer's share of such losses and allocated loss expenses exceeds the balance of credit as of the statement date, CNA the Reinsurer shall, within thirty (30) days after receipt of notice of such excess, secure delivery to IGF the Company of an amendment of the Letter of Credit increasing the amount of credit by the amount of such difference. If, however, the statement shows that CNAthe Reinsurer's share of known and reported outstanding losses plus allocated loss expenses relating thereto is less than the balance of credit as of the statement date, IGF the Company shall, within thirty (30) days after receipt of written request from CNAthe Reinsurer, release such excess credit by agreeing to secure an amendment to the Letter of Credit reducing the amount of credit available by the amount of such excess credit.

LOSS FUNDING. A. This Article clause is only applicable to CNA if it those Reinsurers who cannot qualify for credit by the State, meaning the state, province or Federal authority State having jurisdiction over IGFthe Company's loss reserves. As regards policies or bonds issued by the IGF Company coming within the scope of this Agreement, the IGF Company agrees that when it shall file with the insurance department or set up on its books reserves for losses covered hereunder which it shall be required to set up by law it will forward to the CNA Reinsurer a statement showing the proportion of such loss reserves which is applicable to them. The CNA Reinsurer hereby agrees that it will apply for and secure delivery to the IGF Company a clean irrevocable and unconditional Letter of Credit issued by a bank chosen by the CNA Reinsurer and acceptable to the appropriate insurance authorities, in an amount equal to the CNAReinsurer's proportion of the loss reserves in respect of known outstanding losses that have been reported to the CNA and allocated Reinsurer, loss expenses relating thereto and Incurred But Not Reported loss and loss expense as shown in the statement prepared by the IGF. Under no circumstances shall any amount relating to reserves in respect of losses or loss expenses Incurred But Not Reported be included in the amount of the Letter of CreditCompany. The Letter of Credit shall be "Evergreen" and shall be issued for a period of not less than one year, and shall be automatically extended for to one year from its date of expiration or any future expiration date unless thirty (30) days prior to any expiration date, the bank shall notify the IGF Company by certified or registered mail that it elects not to consider the Letter of Credit extended for any additional period. The IGF, or its successors in interest, undertakes to use and apply any amounts which it may draw upon such Credit pursuant to the terms of the Agreement under which the Letter of Credit is held, and for the following purposes only: To pay CNA's share or to reimburse IGF for CNA's share of any liability for loss reinsured by this Agreement, the payment of which has been agreed by CNA and which has not otherwise been paid. To make refund of any sum which is in excess of the actual amount required to pay CNA's share of any liability reinsured by this Agreement. In the event of expiration of the Letter of Credit as provided for above, to establish deposit of CNA's share of known and reported outstanding losses and allocated loss expenses relating thereto under this Agreement. Such cash deposit shall be held in an interest bearing account separate from IGF's other assets, and interest thereon shall accrue to the benefit of CNA. It is understood and agreed that this procedure will be implemented only in exceptional circumstances and that, if it is implemented, IGF will ensure that a rate of interest is obtained for CNA on such a deposit account that is at least equal to the rate which would have been paid by Citibank N.A. in New York, and further that IGF will account to CNA on an annual basis for all interest accruing on the cash deposit account for the benefit of CNA. The bank chosen for the issuance of the Letter of Credit shall have no responsibility whatsoever in connection with the propriety of withdrawals made by IGF the Company or the disposition of funds withdrawn, except to ensure that withdrawals are made only upon the order of properly authorized representatives of IGFthe Company. At annual intervalsIntervals, or more frequently as agreed but never more frequently than semiannually, IGF the Company shall prepare a specific statement, for the sole purpose of amending the Letter of Credit, of CNAthe Reinsurer's share of known and reported outstanding losses and allocated loss expenses Allocated Loss Expenses relating thereto. If the statement shows that CNAthe Reinsurer's share of such losses and allocated Allocated Loss Expenses, and Incurred But Not Reported loss expenses and loss expense, exceeds the balance of credit as of the statement date, CNA the Reinsurer shall, within thirty (30) days after receipt of notice of such excess, secure delivery to IGF the Company of an amendment of the Letter of Credit increasing the amount of credit by the amount of such difference. If, however, the statement shows that CNAthe Reinsurer's share of known and reported outstanding losses plus allocated Allocated Loss Expenses, and Incurred But Not Reported loss expenses and loss expense, relating thereto is less than the balance of credit as of the statement date, IGF the Company shall, within thirty (30) days after receipt of written request from CNAform the Reinsurer, release such excess credit by agreeing to secure an amendment to the Letter of Credit reducing the amount of credit available by the amount of such excess creditCredit.

LOSS FUNDING. (This Article clause is only applicable to CNA if it those Retrocessionaire's who cannot qualify for credit by the State, meaning the state, province or Federal authority regulatory authorities having jurisdiction over IGFthe Retrocedant's loss reserves. .) As regards policies or bonds issued by the IGF Retrocedant coming within the scope of this Agreement, the IGF Retrocedant agrees that that, when it shall file with the insurance department Insurance Department or set up on its books reserves for losses covered hereunder which it shall be required by law to set up by law up, it will forward to the CNA Retrocessionaire a statement showing the proportion of such loss reserves which is applicable to them. The CNA Retrocessionaire hereby agrees that it will apply for and secure delivery to the IGF Retrocedant of a clean clean, irrevocable and unconditional Letter of Credit Credit, issued by a bank chosen by the CNA Retrocessionaire and acceptable to the appropriate insurance authorities, in an amount equal to the CNARetrocessionaire's proportion of the loss reserves in respect of known outstanding losses that have been reported to the CNA Retrocessionaire and allocated loss expenses relating thereto as shown in the statement prepared by the IGFRetrocedant. Under no circumstances shall any amount relating to reserves in respect of losses or loss expenses Incurred But Not Reported losses or any application thereto be included in the amount of the Letter of Credit. The Letter of Credit shall be "Evergreen" and shall be issued for a period of not less than one year, and shall be automatically extended for one year from its date of expiration or any future expiration date unless thirty (30) days prior to any expiration date, date the issuing bank shall notify the IGF Retrocedant by certified or registered mail that it the issuing bank elects not to consider the Letter of Credit extended for any additional period. The IGFNotwithstanding any other provision of this Agreement, the Retrocedant or its successors in interest, undertakes to use and apply any amounts which it interest may draw upon such Credit pursuant to the terms credit at any time without diminution because of the Agreement under which insolvency of the Letter Retrocedant or of Credit is held, and the Retrocessionaire for one or more of the following purposes only: To pay CNA's share or to reimburse IGF for CNA's share of any liability for loss reinsured by this Agreement, the payment of which has been agreed by CNA and which has not otherwise been paid. To make refund of any sum which is in excess of the actual amount required to pay CNA's share of any liability reinsured by this Agreement. In the event of expiration of the Letter of Credit as provided for above, to establish deposit of CNA's share of known and reported outstanding losses and allocated loss expenses relating thereto under this Agreement. Such cash deposit shall be held in an interest bearing account separate from IGF's other assets, and interest thereon shall accrue to the benefit of CNA. It is understood and agreed that this procedure will be implemented only in exceptional circumstances and that, if it is implemented, IGF will ensure that a rate of interest is obtained for CNA on such a deposit account that is at least equal to the rate which would have been paid by Citibank N.A. in New York, and further that IGF will account to CNA on an annual basis for all interest accruing on the cash deposit account for the benefit of CNA. The bank chosen for the issuance of the Letter of Credit shall have no responsibility whatsoever in connection with the propriety of withdrawals made by IGF or the disposition of funds withdrawn, except to ensure that withdrawals are made only upon the order of properly authorized representatives of IGF. At annual intervals, or more frequently as agreed but never more frequently than semiannually, IGF shall prepare a specific statement, for the sole purpose of amending the Letter of Credit, of CNA's share of known and reported outstanding losses and allocated loss expenses relating thereto. If the statement shows that CNA's share of such losses and allocated loss expenses exceeds the balance of credit as of the statement date, CNA shall, within thirty (30) days after receipt of notice of such excess, secure delivery to IGF of an amendment of the Letter of Credit increasing the amount of credit by the amount of such difference. If, however, the statement shows that CNA's share of known and reported outstanding losses plus allocated loss expenses relating thereto is less than the balance of credit as of the statement date, IGF shall, within thirty (30) days after receipt of written request from CNA, release such excess credit by agreeing to secure an amendment to the Letter of Credit reducing the amount of credit available by the amount of such excess credit.:

LOSS FUNDING. A. This Article clause is only applicable to CNA if it those Reinsurers who cannot qualify for credit by the State, meaning the state, province or Federal authority State having jurisdiction over IGFthe Company's loss reservesreserves or has such credit disallowed by the Director or Commissioner of Insurance of such State. As regards policies or bonds issued by the IGF Company coming within the scope of this Agreement, the IGF Company agrees that when it shall file with the insurance department or set up on its books reserves for losses covered hereunder which it shall be required to set up by law it will forward to the CNA Reinsurer a statement showing the proportion of such loss reserves which is applicable to them. The CNA Reinsurer hereby agrees that it will apply for and secure delivery to the IGF Company a clean irrevocable and unconditional Letter of Credit issued by a bank chosen by the CNA Reinsurer and acceptable to the appropriate insurance authorities, in an amount equal to the CNAReinsurer's proportion of the loss reserves in respect of known outstanding losses that have been reported to the CNA and allocated Reinsurer, loss expenses relating thereto and Incurred But Not Reported loss and loss expense as shown in the statement prepared by the IGF. Under no circumstances shall any amount relating to reserves in respect of losses or loss expenses Incurred But Not Reported be included in the amount of the Letter of CreditCompany. The Letter of Credit shall be "Evergreen" and shall be issued for a period of not less than one year, and shall be automatically extended for to one year from its date of expiration or any future expiration date unless thirty (30) days prior to any expiration date, the bank shall notify the IGF Company by certified or registered mail that it elects not to consider the Letter of Credit extended for any additional period. The IGF, or its successors in interest, undertakes to use and apply any amounts which it may draw upon such Credit pursuant to the terms of the Agreement under which the Letter of Credit is held, and for the following purposes only: To pay CNA's share or to reimburse IGF for CNA's share of any liability for loss reinsured by this Agreement, the payment of which has been agreed by CNA and which has not otherwise been paid. To make refund of any sum which is in excess of the actual amount required to pay CNA's share of any liability reinsured by this Agreement. In the event of expiration of the Letter of Credit as provided for above, to establish deposit of CNA's share of known and reported outstanding losses and allocated loss expenses relating thereto under this Agreement. Such cash deposit shall be held in an interest bearing account separate from IGF's other assets, and interest thereon shall accrue to the benefit of CNA. It is understood and agreed that this procedure will be implemented only in exceptional circumstances and that, if it is implemented, IGF will ensure that a rate of interest is obtained for CNA on such a deposit account that is at least equal to the rate which would have been paid by Citibank N.A. in New York, and further that IGF will account to CNA on an annual basis for all interest accruing on the cash deposit account for the benefit of CNA. The bank chosen for the issuance of the Letter of Credit shall have no responsibility whatsoever in connection with the propriety of withdrawals made by IGF the Company or the disposition of funds withdrawn, except to ensure that withdrawals are made only upon the order of properly authorized representatives of IGFthe Company. At annual intervalsIntervals, or more frequently as agreed but never more frequently than semiannually, IGF the Company shall prepare a specific statement, for the sole purpose of amending the Letter of Credit, of CNAthe Reinsurer's share of known and reported outstanding losses and allocated loss expenses Allocated Loss Expenses relating thereto. If the statement shows that CNAthe Reinsurer's share of such losses and allocated Allocated Loss Expenses, and Incurred But Not Reported loss expenses and loss expense, exceeds the balance of credit as of the statement date, CNA the Reinsurer shall, within thirty (30) days after receipt of notice of such excess, secure delivery to IGF the Company of an amendment of the Letter of Credit increasing the amount of credit by the amount of such difference. If, however, the statement shows that CNAthe Reinsurer's share of known and reported outstanding losses plus allocated Allocated Loss Expenses, and Incurred But Not Reported loss expenses and loss expense, relating thereto is less than the balance of credit as of the statement date, IGF the Company shall, within thirty (30) days after receipt of written request from CNAform the Reinsurer, release such excess credit by agreeing to secure an amendment to the Letter of Credit reducing the amount of credit available by the amount of such excess creditCredit.