Common use of Security for Payment of Reinsurer's Obligations Clause in Contracts

Security for Payment of Reinsurer's Obligations. In order to enable the Reinsured to take the maximum credit for the risks ceded under this Agreement on its statutory financial statements (the "Credit Amount") the Reinsurer will satisfy one of the following requirements: a. Apply for, provide to the Reinsured, and maintain during the entire term of this Agreement, one or more Letters of Credit that satisfy each of the requirements for Letters of Credit set forth below. b. Enter into a Trust Agreement to establish a trust account securing the Credit Amount that satisfies each of the requirements for Trust Agreements set forth below. c. Use a combination of Letters of Credit and Trust Agreement with respect to the Credit Amount. The Reinsured agrees to allow the Reinsurer to substitute Trust funds for Letter of Credit obligations or Letter of Credit obligations for Trust funds under this Agreement, provided the Reinsured has given written approval in advance to such substitution. The Reinsurer will seek approval for the substitution of funds with at least 30 days prior notice. The Reinsured shall negotiate any requested transfers in good faith and shall not unreasonably or arbitrarily withhold such approval. Notwithstanding the foregoing, the Reinsured may withhold approval, rescind any prior approval or request the Reinsurer to substitute funds if the Reinsured is unable to obtain credit for reinsurance with respect to the Trust funds or with respect to any Letter of Credit obligations. The Reinsurer agrees to: a. Submit to the jurisdiction of an alternative dispute resolution panel or court of competent jurisdiction with the United States; b. Comply with all the requirements necessary to give such court or panel jurisdiction; c. Designate an agent upon whom service of process may be effected; and d. Abide by the final decision of such court or panel.

Security for Payment of Reinsurer's Obligations. In order to enable the Reinsured to take the maximum credit for the risks ceded under this Agreement on its statutory financial statements (the "“Credit Amount"”) the Reinsurer will satisfy one of the following requirements: a. Apply for, provide to the Reinsured, and maintain during the entire term of this Agreement, one or more Letters of Credit that satisfy each of the requirements for Letters of Credit set forth below. b. Enter into a Trust Agreement to establish a trust account securing the Credit Amount that satisfies each of the requirements for Trust Agreements set forth below. c. Use a combination of Letters of Credit and Trust Agreement with respect to the Credit Amount. The Reinsured agrees to allow the Reinsurer to substitute Trust funds for Letter of Credit obligations or Letter of Credit obligations for Trust funds under this Agreement, provided the Reinsured has given written approval in advance to such substitution. The Reinsurer will seek approval for the substitution of funds with at least 30 days prior notice. The Reinsured shall negotiate any requested transfers in good faith and shall not unreasonably or arbitrarily withhold such approval. Notwithstanding the foregoing, the Reinsured may withhold approval, rescind any prior approval or request the Reinsurer to substitute funds if the Reinsured is unable to obtain credit for reinsurance with respect to the Trust funds or with respect to any Letter of Credit obligations. The Reinsurer agrees to: a. Submit to the jurisdiction of an alternative dispute resolution panel or court of competent jurisdiction with the United States; b. Comply with all the requirements necessary to give such court or panel jurisdiction; c. Designate an agent upon whom service of process may be effected; and d. Abide by the final decision of such court or panel.

Security for Payment of Reinsurer's Obligations. In order to enable the Reinsured to take the maximum credit for the risks ceded under this Agreement on its statutory financial statements (the "Credit Amount") the Reinsurer will satisfy one of the following requirements: a. Apply for, provide to the Reinsured, and maintain during the entire term of this Agreement, one or more Letters of Credit that satisfy each of the requirements for Letters of Credit set forth below. b. Enter into a Trust Agreement to establish a trust account securing the Credit Amount that satisfies each of the requirements for Trust Agreements set forth below. c. Use a combination of Letters of Credit and Trust Agreement with respect to the Credit Amount. The Reinsured agrees to allow the Reinsurer to substitute Trust funds for Letter of Credit obligations or Letter of Credit obligations for Trust funds under this Agreement, provided the Reinsured has given written approval in advance to such substitution. The Reinsurer will seek approval for the substitution of funds with at least 30 days prior notice. The Reinsured shall negotiate any requested transfers in good faith and shall not unreasonably or arbitrarily withhold such approval. Notwithstanding the foregoing, the Reinsured may withhold approval, rescind any prior approval or request the Reinsurer to substitute funds if the Reinsured is unable to obtain credit for reinsurance with respect to the Trust funds or with respect to any Letter of Credit obligations. The Reinsurer agrees to: : a. Submit to the jurisdiction of an alternative dispute resolution panel or court of competent jurisdiction with the United States; ; b. Comply with all the requirements necessary to give such court or panel jurisdiction; ; c. Designate an agent upon whom service of process may be effected; and and d. Abide by the final decision of such court or panel.

Security for Payment of Reinsurer's Obligations. In order to enable the Reinsured to take the maximum credit for the risks ceded under this Agreement on its statutory financial statements (the "Credit Amount") in accordance with the applicable laws of New Jersey and New York, including 11 NYCRR 125.5(b), the Reinsurer will satisfy one of the following requirements: a. Apply for, provide to the Reinsured, and maintain during the entire term of this Agreement, one or more Letters of Credit that satisfy each of the requirements for Letters of Credit set forth below. b. Enter into a Trust Agreement to establish a trust account securing the Credit Amount that satisfies each of the requirements for Trust Agreements set forth below. c. Use a combination of Letters of Credit and Trust Agreement with respect to the Credit Amount. The Reinsured agrees to allow the Reinsurer to substitute Trust funds for Letter of Credit obligations or Letter of Credit obligations for Trust funds under this Agreement, provided the Reinsured has given written approval in advance to such substitution. The Reinsurer will seek approval for the substitution of funds with at least 30 days prior notice. The Reinsured shall negotiate any requested transfers in good faith and shall not unreasonably or arbitrarily withhold such approval. Notwithstanding the foregoing, the Reinsured may withhold approval, rescind any prior approval or request the Reinsurer to substitute funds if the Reinsured is unable to obtain credit for reinsurance with respect to the Trust funds or with respect to any Letter of Credit obligations. The Reinsurer agrees to: : a. Submit to the jurisdiction of an alternative dispute resolution panel or court of competent jurisdiction with the United States; ; b. Comply with all the requirements necessary to give such court or panel jurisdiction; ; c. Designate an agent upon whom service of process may be effected; and and d. Abide by the final decision of such court or panel.

Security for Payment of Reinsurer's Obligations. In order to enable the Reinsured to take the maximum credit for the risks ceded under this Agreement on its statutory financial statements (the "Credit Amount") the Reinsurer will satisfy one of the following requirements: a. Apply for, provide to the Reinsured, and maintain during the entire term of this Agreement, one or more Letters of Credit that satisfy each of the requirements for Letters of Credit set forth below. b. Enter into a Trust Agreement to establish a trust account securing the Credit Amount that satisfies each of the requirements for Trust Agreements set forth below. c. Use a combination of Letters of Credit and Trust Agreement with respect to the Credit Amount. The Reinsured agrees to allow the Reinsurer to substitute Trust funds for Letter of Credit obligations or Letter of Credit obligations for Trust funds under this Agreement, provided the Reinsured has given written approval in advance to such substitution. The Reinsurer will seek approval for the substitution of funds with at least 30 days prior notice. The Reinsured shall negotiate any requested transfers in good faith and shall not unreasonably or arbitrarily withhold such approval. Notwithstanding the foregoing, the Reinsured may withhold approval, rescind any prior approval or request the Reinsurer to substitute funds if the Reinsured is unable to obtain credit for reinsurance with respect to the Trust funds or with respect to any Letter of Credit obligations. The Reinsurer agrees to: a. Submit to the jurisdiction of an alternative dispute resolution panel or court of competent jurisdiction with the United States; ; b. Comply with all the requirements necessary to give such court or panel jurisdiction; ; c. Designate an agent upon whom service of process may be effected; and and d. Abide by the final decision of such court or panel.

Security for Payment of Reinsurer's Obligations. In order to enable the Reinsured to take the maximum credit for the risks ceded under this Agreement on its statutory financial statements (the "Credit Amount") If the Reinsurer must provide security for payment of its obligations it will satisfy one of the following security requirements: a. Apply for, provide to the Reinsured, and maintain during the entire term of this Agreement, one or more Letters of Credit that satisfy each of the requirements for Letters of Credit set forth below. b. Enter into a Trust Agreement to establish a trust account securing the Credit Amount that satisfies each of the requirements for Trust Agreements set forth below. c. Provide for security to be held in the United States subject to withdrawal solely by and under the exclusive control of the Reinsured ("Funds Withheld") upon terms that satisfy Arizona requirements mutually agreed to by the parties. d. Provide for any other form of security that is acceptable to the director of the Arizona Insurance Department. e. Use a any combination of Letters of Credit and Trust Agreement with respect a, b, c and/or d, so long as the portion allocated to the Credit Amountform of security meets the standards specified below for that form of security. The Reinsured agrees to allow the Reinsurer to substitute Trust funds one form of security for Letter of Credit obligations or Letter of Credit obligations for Trust funds another under this Agreement, provided the Reinsured has given written approval in advance to such substitution. The Reinsurer will seek approval for the substitution of funds security with at least 30 days prior notice. The Reinsured shall negotiate any requested transfers in good faith and shall not unreasonably or arbitrarily withhold such approval. Notwithstanding the foregoing, the Reinsured may withhold approval, rescind any prior approval or request the Reinsurer to substitute funds if the Reinsured is unable to obtain credit for reinsurance with respect to the Trust funds or with respect to any Letter of Credit obligationssuch security. The Reinsurer agrees to: a. Submit to the jurisdiction of an alternative dispute resolution panel or court of competent jurisdiction with the United States; b. Comply with all the requirements necessary to give such court or panel jurisdiction; c. Designate an agent upon whom service of process may be effected; and d. Abide by the final decision of such court or panel.