Common use of Payments by Reinsurer Clause in Contracts

Payments by Reinsurer. ======================== 1. Reinsurance premiums submitted by The Equitable shall be net of claims incurred. If a balance is due The Equitable, Reinsurance Company shall remit payment within [ # ] calendar days following receipt of the quarterly reinsurance statement. 2. The Equitable will calculate and report the claim amount to the Reinsurer without delay, and shall provide to the Reinsurer any information for calculating that claim or any portion thereof as the Reinsurer may reasonably require to assess and satisfy itself as to the validity of such claim. In the event the Reinsurer requests such information, then notwithstanding any other provision of this Agreement the Reinsurer shall be entitled within [number (#)] days from the date of the provision by The Equitable of such requested information to contest any such claim or portion thereof that the Reinsurer considers to be invalid or excessive. 3. The amount payable by the Reinsurer in the event of a reduced settlement, if the Reinsurer agrees to take part in the settlement, shall be proportional to the reinsured portion of the claim. 4. Expenses incurred by the full-time employees of The Equitable and any routine investigation costs are borne entirely by The Equitable. Expenses incurred by the full-time employees of the Reinsurer are borne entirely by the Reinsurer. Extraordinary costs incurred by The Equitable in respect of any claim shall be charged to the Reinsurer and The Equitable in the respective proportions that the portion of the claim payable by The Equitable is of the total of such portion plus the Obligation in respect of the claim that is reinsured hereunder, provided, in the case of a contested claim, that the Reinsurer has agreed previously to participate in the settlement of the claim. 5. Subject to the receipt by the Reinsurer of reasonable advance notice from The Equitable of estimated claims under the Policy, the Reinsurer will take such steps as are reasonably required to fund the immediate payment of such claims.