UNAUTHORIZED REINSURANCE. A. If the Company will be denied full statutory credit for reinsurance ceded to a subscribing Reinsurer pursuant to the credit for reinsurance laws or regulations in any applicable jurisdiction, that subscribing Reinsurer will secure an amount equal to the Obligations through one or more of the following: (i) a Letter of Credit which meets the requirements of the NAIC and applicable state insurance laws and regulations; (ii) assets held in trust pursuant to reinsurance trust agreement, which meets the requirements of the NAIC and applicable state insurance laws and regulations (a “Reinsurance Trust”); or (iii) cash. The subscribing Reinsurer shall determine, in its sole discretion, which funding mechanism or combination of funding mechanisms to utilize; provided that the Company receives full credit for the subscribing Reinsurer’s reinsurance.
B. The amount secured shall be equal to the Obligations, plus any additional amount required for the Company to receive full credit for this reinsurance and shall be adjusted quarterly. Upon default by a Reinsurer of sums due and owing to a Company, the Company, as provided in this section 9, may appropriate as much of the Letter of Credit, Reinsurance Trust assets and/or cash as necessary to eliminate the default. The Company may, however, at its discretion, require payment of any sum in default, and it shall be no defense to any such claim that the Company might have had recourse to the Letter of Credit, Reinsurance Trust assets and/or cash.
C. The Company and the Reinsurers hereby agree that the Letter of Credit, Reinsurance Trust and/or cash, provided pursuant to this Agreement may be drawn upon at any time, notwithstanding any other provisions herein contained. The Letter of Credit, Reinsurance Trust and/or cash may be utilized by Company or any successor by operation of law, including, without limitation, any liquidator, rehabilitator, receiver or conservator of the Company for any of the following reasons:
(i) To reimburse the Company for the Reinsurer’s share of Obligations under this Agreement, the payment of which is due under the terms of this Agreement and which has not been otherwise paid;
(ii) To make refund of any sum which is in excess of the actual amount required to pay the Reinsurer’s share of Obligations under this Agreement;
(iii) To fund an account with the Company for the Reinsurer’s share of Obligations under this Agreement; and
(iv) To pay any other amounts due to the Company under this Agree...
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. 16.1. Notwithstanding any other provision of this Agreement to the contrary, if PIC 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 LMIC to obtain credit on its statutory annual statements for the reinsurance being provided hereunder, PIC will establish such escrow accounts, trust accounts for the benefit of LMIC, letters of credit, funds withheld by LMIC, or a combination thereof as required by applicable law or regulation to permit LMIC to obtain credit for such reinsurance upon the request of LMIC if a penalty would accrue to LMIC on its statutory annual statement without such funding. PIC shall have the option of determining the method of funding to be utilized.
16.2. PIC shall promptly notify LMIC of any loss of license or authorization or other change or condition which may affect the ability of LMIC 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.
UNAUTHORIZED REINSURANCE. If the Company is unauthorized or otherwise unqualified in any state or other United States jurisdiction, and if, without security in a form acceptable to the insurance regulatory authorities having jurisdiction over an Affiliate, a financial penalty to such Affiliate, arising from the inability to make a reduction to liabilities for the reinsurance ceded to the Company or the recording of a liability for unauthorized reinsurance, would result on any statutory statement or report such Affiliate is required to make or file with such insurance regulatory authorities or a court of law in the event of insolvency, the Reinsurer will timely fund or provide for the Reinsurer’s share of security for the Obligations (as defined below) under the Underlying Reinsurance Agreement with such Affiliate by:
