Common use of Loss in Excess of Policy Limits/Extra Contractual Obligations Clause in Contracts

Loss in Excess of Policy Limits/Extra Contractual Obligations. A. In the event the Company pays or is held liable to pay an amount of loss in excess of its policy limit, but otherwise within the terms of its policy (hereinafter called “loss in excess of policy limits”) or any punitive, exemplary, compensatory or consequential damages, other than loss in excess of policy limits (hereinafter called “extra contractual obligations”) because of alleged or actual bad faith, negligence or fraud on its part in rejecting an offer of settlement within policy limits, or in the preparation of the defense or in the trial of an action against its insured or reinsured or in the preparation or prosecution of an appeal consequent upon such an action, or in otherwise handling a claim under a policy subject to this Contract, 100% of the loss in excess of policy limits and/or 100% of the extra contractual obligations shall be added to the Company’s loss, if any, under the policy involved, and the sum thereof shall be subject to the provisions of Article V, not exceeding, however, $1,000,000 per occurrence or $3,000,000 in the aggregate as respects the first and second underwriting years collectively and as respects each subsequent underwriting year. B. An extra contractual obligation shall be deemed to have occurred on the same date as the loss covered or alleged to be covered under the policy. C. Notwithstanding anything stated herein, this Contract shall not apply to any loss in excess of policy limits or any extra contractual obligation incurred by the Company as a result of any fraudulent and/or criminal act by any officer or director of the Company acting individually or collectively or in collusion with any individual or corporation or any other organization or party involved in the presentation, defense or settlement of any claim covered hereunder. D. Recoveries from any form of insurance or reinsurance which protects the Company against claims the subject matter of this Article shall inure to the benefit of this Contract. E. If any provision of this Article shall be rendered illegal or unenforceable by the laws, regulations or public policy of any state, such provision shall be considered void in such state, but this shall not affect the validity or enforceability of any other provision of this Contract or the enforceability of such provision in any other jurisdiction.

Loss in Excess of Policy Limits/Extra Contractual Obligations. A. In the event the Company pays or is held liable to pay an amount of loss in excess of its policy limit, but otherwise within the terms of its policy (hereinafter called “"loss in excess of policy limits”") or any punitive, exemplary, compensatory or consequential damages, other than loss in excess of policy limits (hereinafter called “"extra contractual obligations”) "), arising from the handling of any claim on business covered hereunder; such liabilities arising, because of, but not limited to, the following: failure to settle within the policy limit, or by reason of alleged or actual bad faith, negligence or fraud on its part in rejecting an offer of settlement within policy limitssettlement, or in the preparation of the defense or defense, in the trial of an action against its insured or reinsured or in the preparation or prosecution of an appeal consequent upon such an action, or in otherwise handling a claim under a policy subject to this Contract, 100% of the loss in excess of policy limits and/or 100% of the extra contractual obligations shall be added to the Company’s 's loss, if any, under the policy involved, and the sum thereof shall be subject to the provisions of Article V, not exceeding, however, $1,000,000 per occurrence or $3,000,000 in paragraph A of the aggregate as respects the first Retention and second underwriting years collectively and as respects each subsequent underwriting yearLimit Article. B. An extra contractual obligation shall be deemed deemed, in all circumstances, to have occurred on the same date as the loss covered or alleged to be covered under the policy. C. Notwithstanding anything stated herein, this Contract shall not apply to any loss in excess of policy limits or any extra contractual obligation incurred by the Company as a result of any fraudulent and/or criminal act by any officer or director of the Company acting individually or collectively or in collusion with any individual or corporation or any other organization or party involved in the presentation, defense or settlement of any claim covered hereunder. D. Recoveries from any form Savings Clause (Applicable only if the Subscribing Reinsurer is domiciled in the State of insurance or reinsurance which protects the Company against claims the subject matter of this Article New York): In no event shall inure coverage be provided to the benefit of this Contractextent that such coverage is not permitted under New York law. E. If any provision of this Article shall be rendered illegal or unenforceable by the laws, regulations or public policy of any state, such provision shall be considered void in such state, but this shall not affect the validity or enforceability of any other provision of this Contract or the enforceability of such provision in any other jurisdiction.

Loss in Excess of Policy Limits/Extra Contractual Obligations. A. In the event the Company pays or is held liable to pay an amount of loss in excess of its policy limit, but otherwise within the terms of its policy (hereinafter called “loss in excess of policy limits”) or any punitive, exemplary, compensatory or consequential damages, other than loss in excess of policy limits (hereinafter called “extra contractual obligations”) because of alleged or actual bad faith, negligence or fraud on its part in rejecting an offer of settlement within policy limits, or in the preparation of the defense or in the trial of an action against its insured or reinsured or in the preparation or prosecution of an appeal consequent upon such an action, or in otherwise handling a claim under a policy subject to this Contract, 100% of the loss in excess of policy limits and/or 100% of the extra contractual obligations shall be added to the Company’s loss, if any, under the policy involved, and the sum thereof shall be subject to the provisions of Article V, (not exceeding, however, $1,000,000 per occurrence each claim or $3,000,000 in the aggregate as respects the first and second underwriting years collectively and as respects each subsequent underwriting year) shall be subject to the provisions of the Retention and Limit Article. For the purposes of this Article, all claims associated with a certified class action shall be deemed to constitute one claim. In no event shall coverage be provided for loss adjustment expense associated with loss in excess of policy limits and/or extra contractual obligations. B. An extra contractual obligation shall be deemed to have occurred on the same date as the loss covered or alleged to be covered under the policy. C. Notwithstanding anything stated herein, this Contract shall not apply to any loss in excess of policy limits or any extra contractual obligation incurred by the Company as a result of any fraudulent and/or criminal act by any officer or director of the Company acting individually or collectively or in collusion with any individual or corporation or any other organization or party involved in the presentation, defense or settlement of any claim covered hereunder. D. Recoveries from any form of insurance or reinsurance which protects the Company against claims the subject matter of this Article shall inure to the benefit of this Contract. E. If any provision of this Article shall be rendered illegal or unenforceable by the laws, regulations or public policy of any state, such provision shall be considered void in such state, but this shall not affect the validity or enforceability of any other provision of this Contract or the enforceability of such provision in any other jurisdiction.

Loss in Excess of Policy Limits/Extra Contractual Obligations. A. In the event the Company pays or is held liable to pay an amount of loss in excess of its policy limit, but otherwise within the terms of its policy (hereinafter called “"loss in excess of policy limits”") or any punitive, exemplary, compensatory or consequential damages, other than loss in excess of policy limits (hereinafter called “"extra contractual obligations”) "), arising from the handling of any claim on business covered hereunder; such xxxxxxxxxxx arising, because of, but not limited to, the following: failure to settle within the policy limit, or by reason of alleged or actual bad faith, negligence or fraud on its part in rejecting an offer of settlement within policy limitssettlement, or in the preparation of the defense or defense, in the trial of an action against its insured or reinsured or in the preparation or prosecution of an appeal consequent upon such an action, or in otherwise handling a claim under a policy subject to this Contract, 100% of the loss in excess of policy limits and/or 100% of the extra contractual obligations shall be added to the Company’s 's loss, if any, under the policy involved, and the sum thereof shall be subject to the provisions of Article V, not exceeding, however, $1,000,000 per occurrence or $3,000,000 in paragraph A of the aggregate as respects the first Retention and second underwriting years collectively and as respects each subsequent underwriting yearLimit Article. B. An extra contractual obligation shall be deemed deemed, in all circumstances, to have occurred on the same date as the loss covered or alleged to be covered under the policy. C. Notwithstanding anything stated herein, this Contract shall not apply to any loss in excess of policy limits or any extra contractual obligation incurred by the Company as a result of any fraudulent and/or criminal act by any officer or director of the Company acting individually or collectively or in collusion with any individual or corporation or any other organization or party involved in the presentation, defense or settlement of any claim covered hereunder. D. Recoveries from any form Savings Clause (Applicable only if the Subscribing Reinsurer is domiciled in the State of insurance or reinsurance which protects the Company against claims the subject matter of this Article New York): In no event shall inure coverage be provided to the benefit of this Contractextent that such coverage is not permitted under New York law. E. If any provision of this Article shall be rendered illegal or unenforceable by the laws, regulations or public policy of any state, such provision shall be considered void in such state, but this shall not affect the validity or enforceability of any other provision of this Contract or the enforceability of such provision in any other jurisdiction.

Loss in Excess of Policy Limits/Extra Contractual Obligations. A. In the event that the Company pays or is held liable to pay an amount of loss Loss in excess Excess of its policy limitPolicy Limit, but otherwise within the terms of its policy Policy (hereinafter called “loss "Loss in excess Excess of policy limits”Policy Limits") or any punitive, exemplary, compensatory compensatory, or consequential damagesdamages or other amounts, including payments pursuant to applicable statutes, other than loss Loss in excess Excess of policy limits Policy Limits (hereinafter called “extra contractual obligations”"Extra-Contractual Obligations") because of alleged or actual bad faith, faith or negligence or fraud on its part in rejecting an offer of a settlement within policy Policy limits, or in the preparation of discharging its duty to defend or prepare the defense or in the trial of an action against its insured or reinsured policyholder, or in the preparation discharging its duty to prepare or prosecution of prosecute an appeal consequent upon such an action, or in otherwise handling a claim under a policy Policy subject to this Contract, 100% of the loss Loss in excess Excess of policy limits Policy Limits and/or 100% of the extra contractual obligations Extra-Contractual Obligations shall be added to the Company’s 's loss, if any, under the policy Policy involved, and the sum thereof shall be subject to the provisions of Article V, not exceeding, however, $1,000,000 per occurrence or $3,000,000 in the aggregate as respects the first Retention and second underwriting years collectively and as respects each subsequent underwriting yearLimit Article. B. An extra contractual obligation Extra-Contractual Obligation shall be deemed to have occurred on the same date as the loss covered or alleged to be covered under the policyPolicy. C. Notwithstanding anything stated herein, this Contract shall not apply to any loss Loss in excess Excess of policy limits Policy Limits or any extra contractual obligation Extra-Contractual Obligation incurred by the Company as a result of any fraudulent and/or criminal act by any officer Executive Officer or director member of the Board of Directors of the Company acting individually or collectively or in collusion with any individual or corporation or any other organization or party involved in the presentation, defense defense, or settlement of any claim covered hereunder. D. Recoveries from any form of insurance or reinsurance which protects the Company against claims the subject matter of this Article shall inure to the benefit of this Contract. E. If any provision of this Article shall be rendered illegal or unenforceable hereunder (as determined by the laws, regulations or public policy final decision by a court of competent jurisdiction). "Executive Officer" as used herein shall mean any state, such provision shall be considered void in such state, but this shall not affect the validity or enforceability of any other provision of this Contract or the enforceability of such provision in any other jurisdictionsenior executive who performs a policy-making function.

Loss in Excess of Policy Limits/Extra Contractual Obligations. A. In the event the Company pays or is held liable to pay an amount of loss in excess of its policy Policy limit, but otherwise within the terms of its policy Policy (hereinafter called “loss Loss in excess Excess of policy limitsPolicy Limits”) or any punitive, exemplary, compensatory or consequential damages, other than loss Loss in excess Excess of policy limits Policy Limits (hereinafter called “extra contractual obligationsExtra Contractual Obligations”) because of alleged or actual bad faith, negligence or fraud on its part in rejecting an offer of settlement within policy Policy limits, or in the preparation of the defense or in the trial of an action against its insured or reinsured or in the preparation or prosecution of an appeal consequent upon such an action, or in otherwise handling a claim under a policy Policy subject to this Contract, 100% the Loss in Excess of Policy Limits and/or the loss in excess of policy limits and/or 100% of the extra contractual obligations Extra Contractual Obligations shall be added to the Company’s loss, if any, under the policy Policy involved, and the sum thereof shall be subject to the provisions of Article V, not exceeding, however, $1,000,000 per occurrence or $3,000,000 in the aggregate as respects the first Retention and second underwriting years collectively and as respects each subsequent underwriting yearLimit Article. B. An extra contractual obligation shall be deemed to have occurred on the same date as the loss covered or alleged to be covered under the policyPolicy. C. Notwithstanding anything stated herein, this Contract shall not apply to any loss Loss in excess Excess of policy limits Policy Limits or any extra contractual obligation incurred by the The Company as a result of any fraudulent and/or criminal act by any officer Executive Officer or director member of the board of directors of the Company acting individually or collectively or in collusion with any individual or corporation or any other organization or party involved in the presentation, defense or settlement of any claim covered hereunder. “Executive Officer” as used herein shall mean any senior executive who performs a policy-making function. D. Recoveries from any form of insurance or reinsurance which protects the Company against claims the subject matter of this Article shall inure to the benefit of this Contract. E. If any provision of this Article shall be rendered illegal or unenforceable by the laws, regulations or public policy of any state, such provision shall be considered void in such state, but this shall not affect the validity or enforceability of any other provision of this Contract or the enforceability of such provision in any other jurisdiction.

Loss in Excess of Policy Limits/Extra Contractual Obligations. A. In the event the Company pays or is held liable to pay an amount of loss in excess of its policy limit, but otherwise within the terms of its policy (hereinafter called “loss in excess of policy limits”) or any punitive, exemplary, compensatory or consequential damages, other than loss in excess of policy limits (hereinafter called “extra contractual obligations”’) because of alleged or actual bad faith, faith or negligence or fraud on its part in rejecting an offer of a settlement within policy limits, or in the preparation of discharging its duty to defend or prepare the defense or in the trial of an action against its insured or reinsured policyholder, or in the preparation discharging its duty to prepare or prosecution of prosecute an appeal consequent upon such an action, or in otherwise handling a claim under a policy subject to this Contract, 100% of the loss in excess of policy limits and/or 100% of the extra contractual obligations shall be added to the Company’s loss, if any, under the policy involved, and the sum thereof shall be subject to the provisions of Article V, not exceeding, however, $1,000,000 per occurrence or $3,000,000 in the aggregate as respects the first and second underwriting years collectively and as respects each subsequent underwriting yearcovered hereunder. B. An extra contractual obligation shall be deemed to have occurred on the same date as the loss covered or alleged to be covered under the policy. C. Notwithstanding anything stated herein, this Contract shall not apply to any loss in excess of policy limits or any extra contractual obligation incurred by the Company as a result of any fraudulent and/or criminal act by any officer or director of the Company acting individually or collectively or in collusion with any individual or corporation or any other organization or party involved in the presentation, defense or settlement of any claim covered hereunder. D. Recoveries from Notwithstanding anything stated herein, this Contract shall apply to any form loss in excess of insurance the policy limits or reinsurance which protects the Company against claims the subject matter of this Article shall inure to the benefit of this Contract. E. If any provision of this Article shall be rendered illegal or unenforceable extra contractual obligation incurred by the laws, regulations or public policy Reinsurer as a result of any statefraudulent and/or criminal act by any officer or director of the Reinsurer acting individually or collectively or in collusion with any individual or corporation or any other organization or party involved in the presentation, such provision shall be considered void in such state, but this shall not affect the validity defense or enforceability settlement of any other provision of this Contract or the enforceability of such provision in any other jurisdictionclaim covered hereunder.