Common use of Tail Loss Trust Clause in Contracts

Tail Loss Trust. (Any capitalized terms not defined in this Article shall have the meanings otherwise ascribed to them under this Contract. The Company and the Subscribing Reinsurer(s) are sometimes each referred to in this Article as a "Party," and, collectively, as the "Parties.") A. Pursuant to the terms of this Article, the Subscribing Reinsurer(s) will fund the Tail Loss Trust in an amount equal to the Subscribing Reinsurer's Tail Loss Trust Funding Obligation, provided that the Insured, pursuant to the terms of the Policy, notifies the Company that subparagraphs (a).ii. or (a).iii. of the Cancellation Article of the Policy applies with respect to the cancellation of the Policy. In the event Losses (as defined in the Policy) with respect to Tail Loss Loan(s) are incurred for which the Reinsurer is liable under the terms and conditions of this Contract, the Company will receive payment of each Subscribing Reinsurer's proportionate share of such Losses first from the Tail Loss Trust. If the amount in the Tail Loss Trust equals zero, any payment due from the Subscribing Reinsurer shall be made pursuant to the terms of this Contract, including paragraph D of the Reports and Remittances Article. For the avoidance of doubt, this Article shall not be construed in any way so as to: (1) limit the Insured's Aggregate Retention (as defined in the Policy) under the Policy; (2) expand the Company's liability under the Policy, or; (3) expand the Reinsurer's liability under this Contract. B. As used in this Article: