Share of liability. 6.1 The Insurer shall be liable to make payments under each ARP Coverage, Run-off Cover, each other coverage arranged by the SPF Manager pursuant to paragraph 2.12 and any cover arranged by the SPF Manager through the ROF under Regulation 6(a) of the Regulations and/or in accordance with paragraphs 2.13 or 2.14 (or any of them) incepting in the relevant Indemnity Period in accordance with its Percentage Participation in respect of such Indemnity Period. 6.2 The Insurer shall be required to pay over to the SPF Manager on demand any sums requested by the SPF Manager for the purposes of settling any liability of the Insurer in accordance with paragraph 6.1. 6.3 The Insurer shall in addition be required to pay over to the SPF Manager on demand any sums requested by the SPF Manager representing: 6.3.1 the costs of establishment, administration, management, replacement and/or closure of the SPF, the ARP and the ROF and the SPF Management Committee (or any of them) (in accordance with the provisions of the SPF Management Agreement and, where not expressly provided for in the SPF Management Agreement, as determined by the SPF Manager in its absolute discretion); 6.3.2 the costs of handling any claim against an ARP Coverage and the costs of handling any claim against each other coverage arranged by the SPF Manager pursuant to paragraph 2.12; 6.3.3 the costs of handling any claim against a Run-off Cover and the costs of handling any claim against each other cover arranged by the SPF Manager through the ROF under Regulation 6(a) of the Regulations and/or in accordance with paragraphs 2.13 or 2.14; 6.3.4 the costs of handling, compromising or settling any claim required to be handled by the SPF Manager pursuant to clause 9.1.2 (including any costs awarded against a Firm that fall properly to be so paid by the ARP); 6.3.5 the costs of audit reports prepared in respect of those Firms which have provided written notice to the SPF Manager, pursuant to Regulation 8 of the Regulations, of their intention to cease practice and to enter the ROF in the next Indemnity Period (“Run-Off Audit Costs”). 6.4 Subject to paragraphs 3.6, 3.7 and 3.12, where a demand is made under paragraphs 6.2 or
Appears in 6 contracts
Samples: Participating Insurers Agreement, Participating Insurers Agreement, Participating Insurers Agreement
Share of liability. 6.1 The Insurer shall be liable to make payments under each ARP Coverage, Run-off Cover, each other coverage arranged by the SPF Manager pursuant to paragraph 2.12 2.13 and any cover arranged by the SPF Manager through the ROF under Regulation 6(a8(a) of the Regulations and/or in accordance with paragraphs 2.13 2.14 or 2.14 2.15 (or any of them) incepting in the relevant Indemnity Period in accordance with its Percentage Participation in respect of such Indemnity Period.
6.2 The Insurer shall be required to pay over to the SPF Manager on demand any sums requested by the SPF Manager for the purposes of settling any liability of the Insurer in accordance with paragraph 6.1.
6.3 The Insurer shall shall, in addition addition, be required to pay over to the SPF Manager on demand any sums requested by the SPF Manager representing:
6.3.1 the costs of establishment, administration, management, replacement and/or closure of the SPF, the ARP and the ROF and the SPF Management Committee (or any of them) (in accordance with the provisions of the SPF Management Agreement and, where not expressly provided for in the SPF Management Agreement, as determined by the SPF Manager in its absolute discretion);
6.3.2 the costs of handling any claim against an ARP Coverage and the costs of handling any claim against each other coverage arranged by the SPF Manager pursuant to paragraph 2.122.13;
6.3.3 the costs of handling any claim against a Run-off Cover and the costs of handling any claim against each other cover arranged by the SPF Manager through the ROF under Regulation 6(a8(a) of the Regulations and/or in accordance with paragraphs 2.13 2.14 or 2.142.15;
6.3.4 the costs of handling, compromising or settling any claim required to be handled by the SPF Manager pursuant to clause 9.1.2 (including any costs awarded against a Firm that fall properly to be so paid by the ARP);
6.3.5 the costs of audit reports and/or ROF risk management reports prepared in respect of those Firms which have provided written notice to the SPF Manager, pursuant to Regulation 8 9 of the Regulations, of their intention to cease practice and to enter the ROF in the next Indemnity Period (“Run-Off Audit Costs”).
6.4 Subject to paragraphs 3.6, 3.7 and 3.123.11, where a demand is made under paragraphs 6.2 or
Appears in 2 contracts
Samples: Participating Insurers Agreement, Participating Insurers Agreement
Share of liability. 6.1 The Insurer shall be liable to make payments under each ARP Coverage, Run-off Cover, each other coverage arranged by the SPF Manager pursuant to paragraph 2.12 and any cover arranged by the SPF Manager through the ROF under Regulation 6(a7(a) of the Regulations and/or in accordance with paragraphs 2.13 or 2.14 (or any of them) incepting in the relevant Indemnity Period in accordance with its Percentage Participation in respect of such Indemnity Period.
6.2 The Insurer shall be required to pay over to the SPF Manager on demand any sums requested by the SPF Manager for the purposes of settling any liability of the Insurer in accordance with paragraph 6.1.
6.3 The Insurer shall shall, in addition addition, be required to pay over to the SPF Manager on demand any sums requested by the SPF Manager representing:
6.3.1 the costs of establishment, administration, management, replacement and/or closure of the SPF, the ARP and the ROF and the SPF Management Committee (or any of them) (in accordance with the provisions of the SPF Management Agreement and, where not expressly provided for in the SPF Management Agreement, as determined by the SPF Manager in its absolute discretion);
6.3.2 the costs of handling any claim against an ARP Coverage and the costs of handling any claim against each other coverage arranged by the SPF Manager pursuant to paragraph 2.12;
6.3.3 the costs of handling any claim against a Run-off Cover and the costs of handling any claim against each other cover arranged by the SPF Manager through the ROF under Regulation 6(a7(a) of the Regulations and/or in accordance with paragraphs 2.13 or 2.14;
6.3.4 the costs of handling, compromising or settling any claim required to be handled by the SPF Manager pursuant to clause 9.1.2 (including any costs awarded against a Firm that fall properly to be so paid by the ARP);
6.3.5 the costs of audit reports prepared in respect of those Firms which have provided written notice to the SPF Manager, pursuant to Regulation 8 9 of the Regulations, of their intention to cease practice and to enter the ROF in the next Indemnity Period (“Run-Off Audit Costs”).
6.4 Subject to paragraphs 3.6, 3.7 and 3.12, where a demand is made under paragraphs 6.2 or
Appears in 1 contract
Samples: Participating Insurers Agreement
Share of liability. 6.1 The Insurer shall be liable to make payments under each ARP Coverage, Run-off Cover, each other coverage arranged by the SPF Manager pursuant to paragraph 2.12 2.13 and any cover arranged by the SPF Manager through the ROF under Regulation 6(a8(a) of the Regulations and/or in accordance with paragraphs 2.13 2.14 or 2.14 2.15 (or any of them) incepting in the relevant Indemnity Period in accordance with its Percentage Participation in respect of such Indemnity Period.
6.2 The Insurer shall be required to pay over to the SPF Manager on demand any sums requested by the SPF Manager for the purposes of settling any liability of the Insurer in accordance with paragraph 6.1.
6.3 The Insurer shall shall, in addition addition, be required to pay over to the SPF Manager on demand any sums requested by the SPF Manager representing:
6.3.1 the costs of establishment, administration, management, replacement and/or closure of the SPF, the ARP and the ROF and the SPF Management Committee (or any of them) (in accordance with the provisions of the SPF Management Agreement and, where not expressly provided for in the SPF Management Agreement, as determined by the SPF Manager in its absolute discretion);
6.3.2 the costs of handling any claim against an ARP Coverage and the costs of handling any claim against each other coverage arranged by the SPF Manager pursuant to paragraph 2.122.13;
6.3.3 the costs of handling any claim against a Run-off Cover and the costs of handling any claim against each other cover arranged by the SPF Manager through the ROF under Regulation 6(a8(a) of the Regulations and/or in accordance with paragraphs 2.13 2.14 or 2.142.15;
6.3.4 the costs of handling, compromising or settling any claim required to be handled by the SPF Manager pursuant to clause 9.1.2 (including any costs awarded against a Firm that fall properly to be so paid by the ARP);
6.3.5 the costs of audit reports and/or ROF risk management reports prepared in respect of those Firms which have provided written notice to the SPF Manager, pursuant to Regulation 8 9 of the Regulations, of their intention to cease practice and to enter the ROF in the next Indemnity Period (“Run-Off Audit Costs”).
6.4 Subject to paragraphs 3.6, 3.7 and 3.123.11, where a demand is made under paragraphs 6.2 or 6.3 prior to the calculation by the SPF Manager of the Insurer’s Actual Proportionate Participation for that Indemnity Period, the SPF Manager may make such demand on the basis of the Insurer’s Initial Estimated Proportionate Participation for that Indemnity Period and the Insurer shall be entitled to receive the benefit of, or shall make any balancing payment in respect of, any difference between its liability as determined in accordance with its Initial Estimated Proportionate Participation and its Actual Proportionate Participation in accordance with paragraph 3.12.
6.5 It is acknowledged by the parties hereto that although the Insurers in each Indemnity Period are required, pursuant to paragraph 6.3.5, to pay the Run-Off Audit Costs incurred in an Indemnity Period, the Run-off Audit Costs are costs which are attributable to the ROF which provides Run- Off Cover to those Firms in respect of which the audit reports have been prepared. Accordingly, the SPF Manager shall, in each Indemnity Period and in accordance with this paragraph 6.5, carry out a recalculation of the Run-Off Audit Costs paid by the Insurers in the previous Indemnity Period to ensure that those costs are properly attributed to the Insurers of the relevant ROF. Following the calculation of an Insurer’s Actual Proportionate Participation in respect of an Indemnity Period, the SPF Manager shall calculate and determine the amount of any consequential adjustment to be made to the amount of any Run-Off Audit Costs paid by each Insurer in the previous Indemnity Period. Where, following a recalculation:
6.5.1 an Insurer has paid more than its Percentage Participation of Run-Off Audit Costs (the amount of the overpayment of Run-Off Audit Costs being the Positive Run-Off Adjustment Amount), the SPF Manager shall pay the Positive Run-Off Adjustment Amount to the Insurer, unless the SPF Manager elects (in its absolute discretion) by notice to the Insurer to set off the Positive Run-Off Adjustment Amount against any amount that is owed by the Insurer in respect of the SPF (or any part of it); or
6.5.2 an Insurer has paid less than its Percentage Participation of Run-Off Audit Costs (the amount of the underpayment of Run-Off Audit Costs being the Negative Run-Off Adjustment Amount), the Insurer shall pay the Negative Run-Off Adjustment Amount to the SPF Manager, unless the SPF Manager (in its absolute discretion) elects by notice to the Insurer to set off the Negative Run-Off Adjustment Amount against any amount that is owed in respect of the SPF (or any part of it) to the Insurer, and the payment or election (as the case may be) shall be made no later than 20 Working Days after the recalculation of the Insurer’s Percentage Participation is determined.
6.6 The Insurer shall pay over to the SPF Manager any sums demanded by the SPF Manager pursuant to paragraph 6 within ten (10) Working Days of such demand being made, and failing payment in accordance with this paragraph, the Insurer shall be liable to pay interest on any such amount to the SPF Manager at two percent (2%) over the then-prevailing base lending rate of the European Central Bank.
Appears in 1 contract
Samples: Participating Insurers Agreement
Share of liability. 6.1 The Insurer shall be liable to make payments under each ARP Coverage, Run-off Cover, each other coverage arranged by the SPF Manager pursuant to paragraph 2.12 and any cover arranged by the SPF Manager through the ROF under Regulation 6(a) of the Regulations and/or in accordance with paragraphs 2.13 or 2.14 (or any of them) incepting in the relevant Indemnity Period in accordance with its Percentage Participation in respect of such Indemnity Period.
6.2 The Insurer shall be required to pay over to the SPF Manager on demand any sums requested by the SPF Manager for the purposes of settling any liability of the Insurer in accordance with paragraph 6.1.
6.3 The Insurer shall in addition be required to pay over to the SPF Manager on demand any sums requested by the SPF Manager representing:
6.3.1 the costs of establishment, administration, management, replacement and/or closure of the SPF, the ARP and the ROF and the SPF Management Committee (or any of them) (in accordance with the provisions of the SPF Management Agreement and, where not expressly provided for in the SPF Management Agreement, as determined by the SPF Manager in its absolute discretion);
6.3.2 the costs of handling any claim against an ARP Coverage and the costs of handling any claim against each other coverage arranged by the SPF Manager pursuant to paragraph 2.12;
6.3.3 the costs of handling any claim against a Run-off Cover and the costs of handling any claim against each other cover arranged by the SPF Manager through the ROF under Regulation 6(a) of the Regulations and/or in accordance with paragraphs 2.13 or 2.14;
6.3.4 the costs of handling, compromising or settling any claim required to be handled by the SPF Manager pursuant to clause 9.1.2 (including any costs awarded against a Firm that fall properly to be so paid by the ARP);
6.3.5 the costs of audit reports prepared in respect of those Firms which have provided written notice to the SPF Manager, pursuant to Regulation 8 of the Regulations, of their intention to cease practice and to enter the ROF in the next Indemnity Period (“Run-Off Audit Costs”).
6.4 Subject to paragraphs 3.6, 3.7 and 3.12, where a demand is made under paragraphs 6.2 or
Appears in 1 contract
Samples: Qualified Insurers Agreement
