Tolerance Levels Clause Samples
The Tolerance Levels clause defines the acceptable range of deviation from specified standards or quantities in a contract. It typically sets numerical or qualitative thresholds within which minor discrepancies are permitted without constituting a breach, such as allowing a small percentage variance in delivered goods or service performance. This clause ensures both parties have clear expectations regarding permissible variations, reducing disputes over minor non-conformities and providing flexibility in contract execution.
Tolerance Levels. As the service relates to the management of client account balances and cash, the service has moderate tolerance to disruptions or delays (up to one week). Non-performance of the service over the short term will extend the timelines for collection of cash and matching to client accounts, resulting in inaccurate records.
Tolerance Levels. As this service relates to a reporting process that operates quarterly, there is moderate tolerance to disruptions or delays (up to one week). Non-performance of the service would result in the Underwriter being unable to meet external reporting obligations.
Tolerance Levels. As this service relates to ongoing accounting processes, there is moderate tolerance to disruptions or delays (up to one week). Non-performance of the service would result in poor visibility of sources and uses of cash, requiring the Underwriter to hold higher cash balances, or longer payment times in order to obtain sufficient cash to make payments as arising.
Tolerance Levels. As this service relates to the adjustment of claims, considering the profile of the Underwriter and Coverholder’s joint policyholders, the service has moderate tolerance to disruptions or delays (up to one week). Non-performance of the service over the short term may result in policyholder complaints, and over the longer term expose the Underwriter to reputational damage, regulatory and legal risks.
Tolerance Levels. As this service relates to the front-office origination of new business, there is minimal tolerance to disruptions or delays (up to 24 hours). Non-performance of the service would result in the Coverholder being placed into involuntary run-off and revenue being foregone.
Tolerance Levels. As this service relates to ongoing collateral management processes, there is minimal tolerance to disruptions or delays (up to 24 hours). Non-performance of the service may result in improper collateral management, resulting in the Underwriter breaching its’ obligations under the policies it has written.
Tolerance Levels. As this service relates to an annual process that is iterative in nature and non-time sensitive, there is significant tolerance to disruptions or delays (up to 3 months). Non-performance of the service would result in the business falling back on the most recent annual plan
Tolerance Levels. As this service relates to ongoing accounting processes, there is moderate tolerance to disruptions or delays (up to one week) for BAU payments, however there is minimal tolerance for critical payments (up to 24 hours, as defined by the Underwriter). Non-performance of the service would result in a backlog of processing activity accumulating for BAU payments, and potential breach of contractual obligations for critical payments.
Tolerance Levels. As this service relates to ongoing processing activities, there is moderate tolerance to disruptions or delays (up to one week). Non-performance of the service would result in a backlog of processing activity accumulating.
Tolerance Levels. (a) Pricing Pricing activities relate to relates to the front-office origination of new business, there is minimal tolerance to disruptions or delays (up to 24 hours). Non-performance of the service would result in the Coverholder being placed into involuntary run-off and revenue being foregone.
(b) Capital management and reserving Capital management and reserving activities relate to a reporting process that operates quarterly, there is moderate tolerance to disruptions or delays (up to one week). Non-performance of the service would result in the Underwriter unable to complete these activities, which would result in a breach of external reporting obligations.