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.
Appears in 4 contracts
Samples: Reinsurance Agreement, Personal and Commercial Automobile Quota Share (National General Holdings Corp.), Personal and Commercial Automobile Quota Share (Amtrust Financial Services, Inc.)
