RESERVE CREDIT. The Reinsurer shall establish and maintain reserves with respect to ceded Policy liabilities that equal or exceed the Reinsurer's proportionate share of the reserve credit taken by the Ceding Company. The Ceding Company shall on an annual basis provide the Reinsurer with a reserve summary for ceded Policy liabilities hereunder. This annual reserve summary shall include the opinion of the Ceding Company's actuary applicable to such Policy liabilities.
RESERVE CREDIT. The Reinsurer shall, to the extent necessary, together with all its subsequent retrocessionaires, establish adequate net reserves, and shall agree in good faith to take any other steps necessary, pursuant to the requirements of Texas or any other state or jurisdiction in which the Ceding Company is licensed or accredited, for the Ceding Company to take statutory credit for reinsurance ceded to an unadmitted, unauthorized or unaccredited reinsurer, up to the full amount of the reserve that the Ceding Company would have established for the Policies if it had retained the Policies.
RESERVE CREDIT. NOTE: Reserve Credit Hours of four (4) to be implemented twelve (12) months following the effective date of this Agreement.
RESERVE CREDIT. The Reinsurer shall agree in good faith to take any other steps necessary, pursuant to the requirements of Illinois, for the Ceding Company to take statutory credit for reinsurance ceded to an unadmitted, unauthorized or unaccredited reinsurer, up to the full amount of the reserve that the Ceding Company would have established for the Policies if it had retained the Policies.
RESERVE CREDIT. It is the intention of the Ceding Company and the Reinsurer that the Ceding Company receive full statutory accounting credit for reinsurance ceded to the Reinsurer pursuant to this Agreement in all jurisdictions in which the Ceding Company is authorized to do business or accredited as a reinsurer. In addition to the requirements of other provisions of this Agreement, the Reinsurer agrees to take any other steps necessary for the Ceding Company to receive such statutory accounting treatment. If, despite its best efforts, the Reinsurer is unable or fails to comply with the terms of this section, it shall immediately notify the Ceding Company, and the Ceding Company shall have the right to terminate this Agreement and recapture all reinsurance hereunder pursuant to Articles VII and XII.
RESERVE CREDIT. The parties intend that the Ceding Company will receive statutory reserve credit in its state of domicile for reinsurance provided under this Agreement. The parties agree to use reasonable efforts to ensure that such reserve credit will remain available to the Ceding Company. If the Ceding Company loses statutory reserve credit in part or in total due to a change in law or regulation (or a change in the interpretation or application of existing law or regulation by a regulator) or due to a failure by the Reinsurer to maintain in effect a required license or accreditation in the Ceding Company’s state of domicile (hereinafter a “Reserve Credit Event”), then the parties will take the steps specified below. The parties will provide prompt notice of the occurrence of any Reserve Credit Event. Upon the occurrence of any Reserve Credit Event, the Reinsurer shall establish on behalf of the Ceding Company such trust accounts, letters of credit, premiums withheld by the Ceding Company, or a combination thereof as may be required by applicable law in order to permit the Ceding Company to obtain credit for such reinsurance. The Reinsurer will have the option of determining the method of funding to be utilized so long as the Ceding Company is satisfied that such method will provide such statutory financial statement credit. The Reinsurer also agrees to take any additional action as may be reasonably required so as to comply, with the requirements imposed by the insurance laws and regulations of the State of Minnesota in order to give the Ceding Company at all times full statutory financial statement credit for the reinsurance being provided under this Agreement, pursuant to Section 15.2 above, including by working in good faith to amend this Agreement to add reasonably required credit for reinsurance provisions. If a Reserve Credit Event is not cured within ninety (90) days and the Reinsurer fails to establish or maintain collateral as set forth above, then the Ceding Company may recapture the business ceded under this Agreement. In that event, the Ceding Company and the Reinsurer will negotiate in good faith the terms of a mutually agreed recapture of the reinsurance provided hereunder, such recapture to include the payment by the Reinsurer to the Ceding Company of the unearned reinsurance premiums (if any) and the amount of any pending undisputed claims and claims incurred but not reported as of the effective date of the recapture that is reported to the Reinsurer w...
RESERVE CREDIT. 34-2.01 Each Reserve Period will be credited four (4) Credit Hours.
RESERVE CREDIT. For those states in which we are not licensed, admitted, or authorized and you are consequently not permitted to take reserve credit on your Annual Statement for all or a part of the reinsurance ceded to us, we will furnish a clean, unconditional, evergreen and irrevocable Letter of Credit. The Letter of Credit will be issued by a bank which is neither a parent, subsidiary, nor an affiliate of the parties (hereinafter referred to as the “designated bank”) in an amount equal to the reserves ceded to us. The designated bank must be organized or licensed in the United States and must appear on the list of approved banks published by the Securities Valuation Office of the National Association of Insurance Commissioners. We will bear the cost of the Letter of Credit.
RESERVE CREDIT. If required for GELAAC to obtain credit for reinsurance, the Reinsurer will post security that complies with the applicable state’s or states’ regulations.
RESERVE CREDIT. The Reinsurer shall hold and maintain all licenses and authorizations required under applicable Law and, subject to the last sentence of this Section 5.10, otherwise take any and all steps necessary to provide the Ceding Company with Reserve Credit throughout the entire term of this Agreement. Upon the occurrence of any event that would be reasonably likely to result in the Ceding Company being unable to take full statutory financial statement credit for the reinsurance provided by this Agreement in all Applicable Jurisdictions for any reason as of the end of any quarterly or annual financial statement period (the loss of such credit, a “Reserve Credit Event”), the Reinsurer, at its own expense, shall, subject to the last sentence of this Section 5.10, within ten (10) Business Days following the occurrence of such event or, if later, prior to the end of the calendar quarter during which such event occurs, take all steps necessary to comply with all applicable Laws so as to permit the Ceding Company to obtain Reserve Credit throughout the entire term of this Agreement to the extent credit is not otherwise available under applicable Law (including conversion to reinsurance on a funds withheld or modified coinsurance basis, with the consent of the Ceding Company; provided, however, the failure of the Ceding Company to consent to any such conversion shall not relieve or discharge any obligation of the Reinsurer to take, subject to the last sentence of this Section 5.10, any or all other steps necessary, including, at the Reinsurer’s option, posting Qualifying Letters of Credit or establishing a credit for reinsurance trust). Furthermore, the Reinsurer and the Ceding Company agree to cooperate in good faith to amend this Agreement or the Trust Agreement, or enter into other agreements or execute additional documents, in each case, as needed to comply with the credit for reinsurance laws and regulations and the requirements of the applicable Governmental Authorities to ensure the Ceding Company obtains Reserve Credit.
