Common use of Maintenance of the Reserve Credit Required Balance Clause in Contracts

Maintenance of the Reserve Credit Required Balance. On a quarterly basis the Ceding Company will provide to the Reinsurer a written notice of the Reserve Credit Required Balance within thirty (30) days of the end of the calendar quarter. If the sum of the aggregate fair market value of the Qualifying Assets in the Reserve Credit Trust Account plus the fair market value of the assets in any Segregated Account plus the amount of any Letters of Credit, is less than the Reserve Credit Required Balance contained in such notice, the Reinsurer shall, no later than fifteen (15) business days after such written notice, deposit additional Qualifying Assets in the Reserve Credit Trust Account so that the aggregate fair market value of the Qualifying Assets in the Reserve Credit Trust Accounts plus the fair market value of the assets in any Segregated Account plus the amount of any Letters of Credit, is not less than the Reserve Credit Required Balance. If the Reinsurer disagrees with the Reserve Credit Required Balance, it will promptly notify the Ceding Company. The parties shall be expeditious and reasonable in resolving any such dispute. In the event an amount in excess of one hundred and ten percent (110%) of the actual Reserve Credit Required Balance (“Excess Asset Amount”) is provided by the Reinsurer as requested by written notice from the Ceding Company under this Paragraph 3, an additional fee equal to the Excess Asset Amount multiplied by the annualized Delayed Payment interest rate as set forth in Article VI, Paragraph 6 shall be payable to the Reinsurer as an additional amount of Reinsurance Premium prorated for the period commencing seven (7) days after such actual amount is reported to the Reinsurer and ending on the date such assets are released from the Trust Account to the Reinsurer. Such additional fee is only due when the Excess Asset Amount exceeds ten million dollars.

Maintenance of the Reserve Credit Required Balance. On a quarterly basis the The Ceding Company using sound actuarial principles and following the methodology set forth in Exhibit II attached hereto, will provide to the Reinsurer a written notice of the estimated Reserve Credit Required Balance within thirty by no later than the twenty-second (3022nd) days day of the end last month of the calendar quarter. If the sum of the aggregate fair market value of the Qualifying Assets in the Reserve Credit Trust Account plus the fair market value of the assets in any Segregated Account Accounts plus the amount of any Letters of Credit, is less than the estimated Reserve Credit Required Balance contained in such notice, the Reinsurer shall, no later than fifteen (15) business days after the last day of such written noticecalendar quarter, deposit additional Qualifying Assets in the Reserve Credit Trust Account so that the aggregate fair market value of the Qualifying Assets in the Reserve Credit Trust Accounts plus the fair market value of the assets in any Segregated Account Accounts plus the amount of any Letters of Credit, is not less than the estimated Reserve Credit Required Balance. The Ceding Company shall provide the Reinsurer with written notice of the actual Reserve Credit Required Balance no later than the tenth (10th) business day following the end of the calendar quarter. If the Reinsurer disagrees with the Reserve Credit Required Balance, estimated or otherwise, it will promptly notify the Ceding Company. The parties shall be expeditious and reasonable in resolving any such dispute. In If during an Accounting Period, the event an amount in excess of one hundred and ten percent (110%) insurance regulator of the actual Ceding Company’s domicile notifies the Ceding Company in writing that additional collateral must be provided by the Reinsurer in order for the Ceding Company to be able to obtain full credit for the reinsurance provided under this Agreement, then the Reinsurer shall, upon being provided at least fifteen (15) days prior written notice with documentation supporting such claim, deposit Qualifying Assets into the Reserve Credit Trust Account so that the aggregate fair market value of the Qualifying Assets held in the Reserve Credit Trust Account plus the fair market value of the assets in the Segregated Accounts plus the amount of any Letters of Credit is equal to or greater than the lesser of the Reserve Credit Required Balance (“Excess Asset Amount”) is provided or the amount required by the Reinsurer as requested by written notice from the Ceding Company under this Paragraph 3, an additional fee equal to the Excess Asset Amount multiplied by the annualized Delayed Payment interest rate as set forth in Article VI, Paragraph 6 insurance regulator. The parties shall be payable to expeditious and reasonable in resolving any dispute regarding the Reinsurer as an additional amount of Reinsurance Premium prorated for the period commencing seven (7) days after such actual amount is reported to the Reinsurer and ending on the date such assets are released from the Trust Account to the Reinsurer. Such additional fee is only due when the Excess Asset Amount exceeds ten million dollarsReserve Credit Required Balance.

Maintenance of the Reserve Credit Required Balance. On a quarterly basis No later than the tenth (10th) business day of the month immediately following the end of each Accounting Period, the Ceding Company will provide to the Reinsurer a written notice setting forth the Gross Minus Net Reserve and the Cumulative Ceded Reinsurance Premiums for the immediately preceding Accounting Period for purposes of determining the Reserve Credit Required Balance, as defined below, for such Accounting Period (attached hereto as Schedule B-2, the “Reserve Credit Required Balance within thirty (30) days of the end of the calendar quarterNotice”). If the sum of the aggregate fair market value of the Qualifying Assets in the Reserve Credit Trust Account plus the fair market value of the assets in any Segregated Account Accounts plus the amount of any Letters of Credit, Credit is less than the Reserve Credit Required Balance contained in such notice, the Reinsurer shall, no later than fifteen (15) business days after such written notice, shall deposit additional Qualifying Assets in the Reserve Credit Trust Account no later than the [Redacted] (the “Reinsurer Trust Funding Date”) so that the aggregate fair market value of the Qualifying Assets in the Reserve Credit Trust Accounts Account plus the fair market value of the assets in any Segregated Account Accounts plus the amount of any Letters of Credit, is not less than the Reserve Credit Required Balance. If the Reinsurer disagrees with the Reserve Credit Required Balance, it will promptly notify the Ceding Company. For the avoidance of doubt, the Reinsurer shall deposit any disputed amounts into the Reserve Credit Trust Account pending the resolution of any such dispute. The parties shall be expeditious and reasonable in resolving any such disputedisputes. In The Qualifying Assets in the event an amount in excess of one hundred and ten percent (110%) Reserve Credit Trust Account shall be marked to market as of the actual end of each business day. If, as of the last business day of a calendar month, the sum of the aggregate fair market value of such Qualifying Assets in the Reserve Credit Trust Account plus the fair market value of the assets in any Segregated Accounts plus the amount of any Letters of Credit is less than [Redacted] of the Gross Minus Net Reserve, as defined below, contained in the most recent Reserve Credit Required Balance (“Excess Asset Amount”) is provided by the Reinsurer as requested by written notice Notice from the Ceding Company under this Paragraph 3(the difference between such collateral amounts and the [Redacted] of the Gross Minus Net Reserve, the “Market Value Differential”), the Reinsurer shall, by the fifth (5th) business day of the immediately subsequent month, deposit additional Qualifying Assets with an additional fee aggregate fair market value equal to the Excess Asset Amount multiplied by amount of such Market Value Differential in the annualized Delayed Payment interest rate Reserve Credit Trust Account so that the aggregate fair market value of the Qualifying Assets in the Reserve Credit Trust Account plus the fair market value of the assets in any Segregated Accounts plus the amount of any Letters of Credit, is not less than the [Redacted] of the Gross Minus Net Reserve; provided, however, that (a) the foregoing monthly deposit obligation shall not be required for Market Value Differentials existing on the last business day of the first calendar month of each calendar quarter, (b) the foregoing monthly deposit obligation shall not be required in the event that the applicable Market Value Differential for such calendar month [Redacted]. For the avoidance of doubt, nothing in this paragraph shall be read to alter or supersede the Reinsurer’s obligations to maintain the Reserve Credit Required Balance as set forth in Article VI, the first paragraph of this Paragraph 6 shall be payable to the Reinsurer as an additional amount of Reinsurance Premium prorated for the period commencing seven (7) days after such actual amount is reported to the Reinsurer and ending on the date such assets are released from the Trust Account to the Reinsurer. Such additional fee is only due when the Excess Asset Amount exceeds ten million dollars3.

Maintenance of the Reserve Credit Required Balance. On a quarterly basis the The Ceding Company using sound actuarial principles and following the methodology set forth in Exhibit II attached hereto, will provide to the Reinsurer a written notice of the estimated Reserve Credit Required Balance within thirty by no later than the twenty-second (3022nd) days day of the end last month of the calendar quarter. If the sum of the aggregate fair market value of the Qualifying Assets in the Reserve Credit Trust Account plus the fair market value of the assets in any Segregated Account Accounts plus the amount of any Letters of Credit, is less than the estimated Reserve Credit Required Balance contained in such notice, the Reinsurer shall, no later than fifteen (15) business days after the last day of such written noticecalendar quarter, deposit additional Qualifying Assets in the Reserve Credit Trust Account so that the aggregate fair market value of the Qualifying Assets in the Reserve Credit Trust Accounts plus the fair market value of the assets in any Segregated Account Accounts plus the amount of any Letters of Credit, is not less than the estimated Reserve Credit Required Balance. The Ceding Company shall provide the Reinsurer with written notice of the actual Reserve Credit Required Balance no later than the tenth (10th) business day following the end of the calendar quarter. If the Reinsurer disagrees with the Reserve Credit Required Balance, estimated or otherwise, it will promptly notify the Ceding Company. The parties shall be expeditious and reasonable in resolving any such dispute. In If during an Accounting Period, the event an amount in excess of one hundred and ten percent (110%) insurance regulator of the actual Ceding Company’s domicile notifies the Ceding Company in writing that additional collateral must be provided by the Reinsurer in order for the Ceding Company to be able to obtain full credit for the reinsurance provided under this Agreement, then the Reinsurer shall, upon being provided at least fifteen (15) days prior written notice with documentation 25 of 88 supporting such claim, deposit Qualifying Assets into the Reserve Credit Trust Account so that the aggregate fair market value of the Qualifying Assets held in the Reserve Credit Trust Account plus the fair market value of the assets in the Segregated Accounts plus the amount of any Letters of Credit is equal to or greater than the lesser of the Reserve Credit Required Balance (“Excess Asset Amount”) is provided or the amount required by the Reinsurer as requested by written notice from the Ceding Company under this Paragraph 3, an additional fee equal to the Excess Asset Amount multiplied by the annualized Delayed Payment interest rate as set forth in Article VI, Paragraph 6 insurance regulator. The parties shall be payable to expeditious and reasonable in resolving any dispute regarding the Reinsurer as an additional amount of Reinsurance Premium prorated for the period commencing seven (7) days after such actual amount is reported to the Reinsurer and ending on the date such assets are released from the Trust Account to the Reinsurer. Such additional fee is only due when the Excess Asset Amount exceeds ten million dollarsReserve Credit Required Balance.