UNAUTHORIZED REINSURANCE Sample Clauses

UNAUTHORIZED REINSURANCE. A. This Article applies only to the extent a Subscribing Reinsurer does not qualify for credit with any insurance regulatory authority having jurisdiction over the Company's reserves. B. The Company agrees, in respect of its Policies or bonds falling within the scope of this Agreement, that when it files with its insurance regulatory authority, or sets up on its books liabilities as required by law, it shall forward to the Reinsurer a statement showing the proportion of such liabilities applicable to the Reinsurer. The "Reinsurer's Obligations" shall be defined as follows: 1. Unearned premium (if applicable); 2. Known outstanding losses that have been reported to the Reinsurer and Loss Adjustment Expense relating thereto; 3. Losses and Loss Adjustment Expense paid by the Company but not recovered from the Reinsurer; 4. Losses incurred but not reported from known Loss Occurrences and Loss Adjustment Expenses relating thereto; 5. All other amounts for which the Company cannot take credit on its financial statements unless funding is provided by the Reinsurer. C. The Reinsurer's Obligations shall be funded by funds withheld, cash advances, Trust Agreement or a Letter of Credit (LOC). The Reinsurer shall have the option of determining the method of funding provided it is acceptable to the insurance regulatory authorities having jurisdiction over the Company's reserves. D. When funding by a Trust Agreement, the Reinsurer shall ensure that the Trust Agreement complies with the provisions of the “Trust Agreement Requirements Clause” attached hereto. When funding by an LOC, the Reinsurer agrees to apply for and secure timely delivery to the Company of a clean, irrevocable and unconditional LOC issued by a bank and containing provisions acceptable to the insurance regulatory authorities having jurisdiction over the Company's reserves in an amount equal to the Reinsurer's Obligations. Such LOC shall be issued for a period of not less than one year, and shall be automatically extended for one year from its date of expiration or any future expiration date unless 30 days (or such other time period as may be required by insurance regulatory authorities), prior to any expiration date the issuing bank shall notify the Company by certified or registered mail that the issuing bank elects not to consider the LOC extended for any additional period. E. The Reinsurer and the Company agree that any funding provided by the Reinsurer pursuant to the provisions of this Agreement ma...

UNAUTHORIZED REINSURANCE. A. This Article applies only to the extent a Subscribing Reinsurer does not qualify for credit with any insurance regulatory authority having jurisdiction over the Company’s reserves. B. The Company agrees, in respect of its Policies or bonds falling within the scope of this Contract, that when it files with its insurance regulatory authority, or sets up on its books liabilities as required by law, it shall forward to the Reinsurer a statement showing the proportion of such liabilities applicable to the Reinsurer. The “Reinsurer’s Obligations” shall be defined as follows:

UNAUTHORIZED REINSURANCE. A. This Article applies only to the extent a Subscribing Reinsurer does not qualify for credit with any insurance regulatory authority having jurisdiction over the Company’s reserves. B. The Company agrees, in respect of business falling within the scope of this Contract, that when it files with its insurance regulatory authority, or sets up on its books liabilities as required by law, it shall forward to the Reinsurer a statement showing the proportion of such liabilities applicable to the Reinsurer. The “Reinsurer’s Obligations” shall be defined as any amounts due the Company under this Contract, as set up on the Company’s books.

UNAUTHORIZED REINSURANCE. (LM-02500-2006.10.26-A) (Applies only to a Subscribing Reinsurer who at the inception of the Contract or at any time thereafter does not qualify for full credit with any insurance regulatory authority having jurisdiction over the Company’s reserves.)

UNAUTHORIZED REINSURANCE. 20 25 Taxes .......................................................................................... 22 26

UNAUTHORIZED REINSURANCE. As regards Ceded Contracts, the Company agrees that when it shall file with the insurance regulatory authority or set up on its books reserves for unearned premium and Losses, Loss Adjustment Expenses and Extra Contractual Obligations covered hereunder which it shall be required by law to set up, it will forward to the Retrocessionaire a statement showing the proportion of such reserves which is applicable to the Retrocessionaire. Without limiting Article 19, the Retrocessionaire hereby agrees to provide security (to the extent, if any, required in addition to security provided pursuant to Article 19) sufficient to permit the Company to take full statutory credit for cessions hereunder in respect of the Company’s reserves by funds withheld, cash advances and/or a Letter of Credit. Subject to Article 19, the Retrocessionaire shall have the option of determining the method of funding provided it is acceptable to the insurance regulatory authorities having jurisdiction over the Company’s reserves.

UNAUTHORIZED REINSURANCE. If reinsurance provided under this Agreement is disallowed to any party for financial statement purposes by the insurance regulatory authority of any state, due to the laws or regulations of such state relating to reinsurance effective with unauthorized companies, then the unauthorized company shall secure the reinsurance ceded to the extent it has been disallowed by one of the following methods:

UNAUTHORIZED REINSURANCE to a subscribing reinsurer who does not qualify for full credit with any insurance regulatory authority having jurisdiction over the Company’s reserves.)

UNAUTHORIZED REINSURANCE. Notwithstanding any other provision of this Agreement to the contrary, if LMIC becomes unauthorized in any State of the United States of America or the District of Columbia or any other jurisdiction where authorization is required by insurance regulatory authorities in order for PIC to obtain credit on its statutory annual statements for the reinsurance being provided hereunder, LMIC will establish such escrow accounts, trust accounts for the benefit of PIC, letters of credit, funds withheld by PIC, or a combination thereof as required by Applicable Law to permit PIC to obtain credit for such reinsurance upon the request of PIC if a penalty would accrue to the PIC on its statutory annual statement without such funding. LMIC shall have the option of determining the method of funding to be utilized. LMIC shall promptly notify PIC of any loss of license or authorization or other change or condition that may affect the ability of PIC to obtain credit for such reinsurance.

UNAUTHORIZED REINSURANCE. 20.1. Notwithstanding any other provision of this Agreement to the contrary, if the Reinsurer becomes unauthorized in any State of the United States of America or the District of Columbia or any other jurisdiction where authorization is required by insurance regulatory authorities in order for the Company to obtain credit on its statutory annual statements for the reinsurance being provided hereunder, the Reinsurer will establish such escrow accounts, trust accounts for the benefit of the Company, letters of credit, funds withheld by the Company, or a combination thereof as required by applicable law or regulation to permit the Company to obtain credit for such reinsurance upon the request of the Company if a penalty would accrue to the Company on its statutory annual statement without such funding. The Reinsurer shall have the option of determining the method of funding to be utilized. 20.2. The Reinsurer shall promptly notify the Company of any loss of license or authorization or other change or condition which may affect the ability of the Company to obtain credit for such reinsurance.