Common use of Reinsurance Credit Clause in Contracts

Reinsurance Credit. Notwithstanding any other provision of this Quota Share Reinsurance Agreement to the contrary, if Reinsurer is or becomes unauthorized or otherwise unaccredited in any State, the District of Columbia, or any other jurisdiction where authorization or accreditation is required by insurance regulatory authorities in order for Cedent to obtain full credit on its statutory quarterly and annual statements required to be filed with such jurisdiction for the reinsurance being provided under this Quota Share Reinsurance Agreement, Reinsurer, upon the written request of Cedent, will immediately establish, at its sole cost, letters of credit, trust funds or other form of qualifying collateral under documents in form and substance and in amounts sufficient, to permit Cedent to obtain full credit for such reinsurance in such jurisdiction (the “Collateral”). The form of any Collateral shall be selected at the sole option of the Reinsurer, unless a Governmental Entity with jurisdiction over the Cedent rejects such form of Collateral. Any Collateral in the form of letters of credit shall be clean, irrevocable and unconditional letters of credit meeting the requirements of Section 922.5 of the California Insurance Code and Section 31.05.08.08 of the Code of Maryland Regulations. The Collateral shall be in an amount equal to the sum of:

Reinsurance Credit. Notwithstanding any other provision of this Quota Share Reinsurance Agreement to the contrary, if Reinsurer is or becomes unauthorized or otherwise unaccredited in any State, the District of Columbia, or any other jurisdiction where authorization or accreditation is required by insurance regulatory authorities in order for Cedent to obtain full credit on its statutory quarterly and annual statements required to be filed with such jurisdiction for the reinsurance being provided under this Quota Share Reinsurance Agreement, Reinsurer, upon the written request of Cedent, will immediately establish, at its sole cost, letters of credit, trust funds or other form of qualifying collateral under documents in form and substance and in amounts sufficient, to permit Cedent to obtain full credit for such reinsurance in such jurisdiction (the “Collateral”). The form of any Collateral shall be selected at the sole option of the Reinsurer, unless a Governmental Entity with jurisdiction over the Cedent rejects such form of Collateral. Any Collateral in the form of letters of credit shall be clean, irrevocable and unconditional letters of credit meeting the requirements of Section 922.5 of the California Insurance Code and Section 31.05.08.08 of the Code of Maryland RegulationsCode. The Collateral shall be in an amount equal to the sum of::