Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company’s ceded unearned premium and outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) by: 1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or 2. Escrow accounts for the benefit of the Company; and/or 3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved. B. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “evergreen clause,” which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes: 1. To reimburse itself for the Reinsurer’s share of unearned premiums returned to insureds on account of policy cancellations, unless paid in cash by the Reinsurer; 2. To reimburse itself for the Reinsurer’s share of losses and/or loss adjustment expense paid under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer; 3. To reimburse itself for the Reinsurer’s share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer; 4. To fund a cash account in an amount equal to the Reinsurer’s share of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date; 5. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s share of the Company’s ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2) or B(4), or in the case of B(3), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 4 contracts
Samples: Non Standard Private Passenger Automobile Quota Share Reinsurance Contract (Affirmative Insurance Holdings Inc), Non Standard Private Passenger Automobile Quota Share Reinsurance Contract (Affirmative Insurance Holdings Inc), Reinsurance Contract (Affirmative Insurance Holdings Inc)
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company’s 's ceded unearned premium and outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow accounts for the benefit of the Company; and/or
3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved.
B. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “"evergreen clause,” " which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
1. To reimburse itself for the Reinsurer’s 's share of unearned premiums returned to insureds on account of policy cancellations, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s 's share of losses and/or loss adjustment expense paid under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer;
3. To reimburse itself for the Reinsurer’s 's share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
4. To fund a cash account in an amount equal to the Reinsurer’s 's share of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
5. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s 's share of the Company’s 's ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2) or B(4), or in the case of B(3), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 3 contracts
Samples: Commercial Automobile Quota Share Reinsurance Contract (Gryphon Holdings Inc), Quota Share Reinsurance Contract (Gryphon Holdings Inc), Whole Account Net Quota Share Reinsurance Contract (Philadelphia Consolidated Holding Corp)
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company’s 's ceded unearned premium and United States outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow accounts for the benefit of the Company; and/or
3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved.
B. If the Reinsurer is unauthorized in any province or jurisdiction of Canada, the Reinsurer agrees to fund 115% of its share of the Company's ceded Canadian outstanding loss and loss adjustment expense reserves by:
1. A clean, irrevocable and unconditional letter of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a Canadian bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities, for no more than 15/115ths of the total funding required; and/or
2. Cash advances for the remaining balance of the funding required; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved.
C. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “"evergreen clause,” " which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
1. To reimburse itself for the Reinsurer’s 's share of unearned premiums returned to insureds on account losses and/or loss adjustment expenses paid under the terms of policy cancellationspolicies reinsured hereunder, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s share of losses and/or loss adjustment expense paid under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer;
3. To reimburse itself for the Reinsurer’s 's share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
43. To fund a cash account in an amount equal to the Reinsurer’s 's share of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
54. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s 's share of the Company’s 's ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2C(1) or B(4C(3), or in the case of B(3C(2), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 2 contracts
Samples: Excess Catastrophe Reinsurance Contract (Meridian Insurance Group Inc), Underlying Aggregate Excess Catastrophe Reinsurance Contract (Meridian Insurance Group Inc)
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company’s ceded unearned premium and outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow accounts for the benefit of the Company; and/or
3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved.
B. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “evergreen clause,” which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
1. To reimburse itself for the Reinsurer’s share of unearned premiums returned to insureds on account of policy cancellations, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s share of losses and/or loss adjustment expense paid under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer;
32. To reimburse itself for the Reinsurer’s share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
43. To fund a cash account in an amount equal to the Reinsurer’s share of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
54. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s share of the Company’s ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2) or B(4B(3), or in the case of B(3B(2), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 2 contracts
Samples: Underlying Excess Workers’ Compensation Reinsurance Contract (Amcomp Inc /Fl), Excess Workers’ Compensation Reinsurance Contract (Amcomp Inc /Fl)
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company’s 's United States ceded unearned premium and outstanding loss and loss adjustment expense Loss Adjustment Expenses reserves (including incurred but not reported loss reserves) by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow Trust accounts for the benefit of the Company; and/or
3. Cash advances; if, without such funding, a penalty or other negative consequence, including without limitation loss of credit for such reinsurance, either as an admitted asset or as a deduction from liability on account of reinsurance ceded, would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the Company and the insurance regulatory authorities involved.
B. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “"evergreen clause,” " which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 thirty days prior to said such expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
1. To reimburse itself for the Reinsurer’s 's share of unearned premiums returned to insureds on account of policy Policy cancellations, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s 's share of losses and/or loss adjustment expense Loss Adjustment Expenses paid under the terms of policies Policies reinsured hereunder, unless paid in cash by the Reinsurer;
3. To reimburse itself for the Reinsurer’s 's share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
4. To fund a cash account in an amount equal to the Reinsurer’s 's share of any ceded unearned premium and/or outstanding loss and loss adjustment expense Loss Adjustment Expenses reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if said such letter of credit has not been renewed or replaced by the Reinsurer 10 ten days or more prior to its expiration date;
5. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s 's share of the Company’s 's ceded unearned premium and/or outstanding loss and loss adjustment expense Loss Adjustment Expenses reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event that the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2) or B(4), or in the case of B(3), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 2 contracts
Samples: Reinsurance Contract (Federated National Holding Co), Reinsurance Contract (Federated National Holding Co)
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company’s 's ceded unearned premium and outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow accounts for the benefit of the Company; and/or
3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved.
B. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “"evergreen clause,” " which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
1. To reimburse itself for the Reinsurer’s 's share of unearned premiums returned to insureds on account of bond or policy cancellations, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s 's share of losses and/or loss adjustment expense paid under the terms of bonds or policies reinsured hereunder, unless paid in cash by the Reinsurer;
3. To reimburse itself for the Reinsurer’s 's share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
4. To fund a cash account in an amount equal to the Reinsurer’s 's share of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
5. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s 's share of the Company’s 's ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2) or B(4), or in the case of B(3), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 2 contracts
Samples: Reinsurance Contract (Amwest Insurance Group Inc), Aggregate Stop Loss Reinsurance Contract (Amwest Insurance Group Inc)
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company’s 's ceded unearned premium and United States outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) by:
: 1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
and/or 2. Escrow accounts for the benefit of the Company; and/or
and/or 3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved.
B. If the Reinsurer is unauthorized in any province or jurisdiction of Canada, the Reinsurer agrees to fund 115% of its share of the Company's ceded Canadian outstanding loss and loss adjustment expense reserves by: 1. A clean, irrevocable and unconditional letter of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a Canadian bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities, for no more than 15/115ths of the total funding required; and/or 2. Cash advances for the remaining balance of the funding required; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved.
C. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “"evergreen clause,” " which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
: 1. To reimburse itself for the Reinsurer’s share of unearned premiums returned to insureds on account of policy cancellations, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s 's share of losses and/or loss adjustment expense paid under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer;
3; 2. To reimburse itself for the Reinsurer’s 's share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
4; 3. To fund a cash account in an amount equal to the Reinsurer’s 's share of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
5; 4. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s 's share of the Company’s 's ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2C(1) or B(4C(3), or in the case of B(3C(2), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 2 contracts
Samples: Underlying Aggregate Excess Catastrophe Reinsurance Contract (Meridian Insurance Group Inc), External Third Through Seventh Catastrophe Excess Reinsurance Contract (Gryphon Holdings Inc)
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company’s ceded net unearned premium and outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow accounts for the benefit of the Company; and/or
3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved.
B. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “evergreen clause,” which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
1. To reimburse itself for the Reinsurer’s share of net unearned premiums returned to insureds on account of policy cancellations, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s share of losses and/or loss adjustment expense paid under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer;
3. To reimburse itself for the Reinsurer’s share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
4. To fund a cash account in an amount equal to the Reinsurer’s share of any ceded net unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
5. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s share of the Company’s ceded net unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2) or B(4), or in the case of B(3), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 1 contract
Samples: Workers’ Compensation Quota Share Reinsurance Contract (Patriot Risk Management, Inc.)
Unauthorized Reinsurers. A. If the Reinsurer is Reinsurers are unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees Reinsurers agree to fund its their share of the Company’s ceded unearned 's Outstanding portion of Ultimate Net Loss and Pro rata Loss Adjustment Expense reserves and Coverage A return premium and outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) accrued by the Company, as determined by the Company, respectively by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow Trust accounts in conformity with New York Regulation 114 for the benefit of the CompanyCompany and as may be required by any other insurance regulatory authority; and/or
3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The ReinsurerReinsurers, at its their sole option, may fund in other than cash if its their method and form of funding are acceptable to the insurance regulatory authorities involvedinvolved and the Company.
B. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “"evergreen clause,” " which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:days
1. To reimburse itself for the Reinsurer’s Reinsurers' share of unearned premiums returned to insureds on account the Paid portion of policy cancellations, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s share of losses Ultimate Net Loss and/or loss adjustment expense Pro rata Loss Adjustment Expenses paid under the terms of policies reinsured hereunder, unless paid in cash by the ReinsurerReinsurers;
32. To reimburse itself for the Reinsurer’s Reinsurers' share of any Coverage A return premium due and other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;Reinsurers.
43. To fund a cash account in an amount equal to the Reinsurer’s Reinsurers' share of any ceded unearned Outstanding portion of Ultimate Net Loss and Pro rata Loss Adjustment Expense reserves and Coverage A return premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which (a) is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer Reinsurers 10 days prior to its expiration date, or (b) the Reinsurers have failed to increase to the amount requested by the Company, it being understood that nothing in this Contract in any way shall restrict or limit the rights of the Company under the terms of the letter of credit;
54. To refund to the Reinsurer Reinsurers any sum in excess of the actual amount required to fund the Reinsurer’s Reinsurers' share of the Company’s ceded unearned premium and/or outstanding loss 's Outstanding portion of Ultimate Net Loss and loss adjustment expense Pro rata Loss Adjustment Expense reserves (including incurred but not reported loss reserves)and Coverage A return premium, if so requested by the ReinsurerReinsurers. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2) or B(4B(2), or in the case of B(3), the actual amount determined to be due, the Company shall promptly return to the Reinsurer Reinsurers the excess amount so drawn.
Appears in 1 contract
Samples: Specific Excess Reinsurance Contract (Miix Group Inc)
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company’s ceded unearned 's Outstanding portion of Ultimate Net Loss and Pro rata Loss Adjustment Expense reserves and Coverage A return premium and outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) accrued by the Company, as determined by the Company, respectively by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow Trust accounts in conformity with New York Regulation 114 for the benefit of the CompanyCompany and as may be required by any other insurance regulatory authority; and/or
3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involvedinvolved and the Company.
B. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “"evergreen clause,” " which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
1. To reimburse itself for the Reinsurer’s 's share of unearned premiums returned to insureds on account the Paid portion of policy cancellationsUltimate Net Loss and/or Pro rata Loss Adjustment Expenses paid under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s share of losses and/or loss adjustment expense paid under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer;
3. To reimburse itself for the Reinsurer’s 's share of any Coverage A return premium due and other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;.
43. To fund a cash account in an amount equal to the Reinsurer’s 's share of any ceded unearned Outstanding portion of Ultimate Net Loss and Pro rata Loss Adjustment 16 Expense reserves and Coverage A return premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which (a) is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date, or (b) the Reinsurer has failed to increase to the amount requested by the Company, it being understood that nothing in this Contract in any way shall restrict or limit the rights of the Company under the terms of the letter of credit;
54. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s 's share of the Company’s ceded unearned premium and/or outstanding loss 's Outstanding portion of Ultimate Net Loss and loss adjustment expense Pro rata Loss Adjustment Expense reserves (including incurred but not reported loss reserves)and Coverage A return premium, if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2B(l) or B(4B(2), or in the case of B(3), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 1 contract
Samples: Specific Excess Reinsurance Contract (Miix Group Inc)
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, or is rated "B++" or lower by A.M. Best, the Reinsurer agrees to fund its share of the Company’s 's ceded unearned premium and outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow accounts for the benefit of the Company; and/or
3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved.
B. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “"evergreen clause,” " which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
1. To reimburse itself for the Reinsurer’s share of unearned premiums returned to insureds on account of policy cancellations, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s 's share of losses and/or loss adjustment expense paid under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer;
32. To reimburse itself for the Reinsurer’s 's share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
43. To fund a cash account in an amount equal to the Reinsurer’s 's share of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
54. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s 's share of the Company’s 's ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1[(1), B(2) ] or B(4(3), or in the case of B(3(2), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 1 contract
Samples: Workers' Compensation and Employer's Liability Quota Share Reinsurance Contract (Paula Financial)
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of ColumbiaColumbia or rated B+ or less by A.M. Best, the Reinsurer agrees to fund its share of the Company’s 's ceded unearned premium and outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow accounts for the benefit of the Company; and/or
3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved.
B. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “"evergreen clause,” " which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
1. To reimburse itself for the Reinsurer’s 's share of unearned premiums returned to insureds on account of policy cancellations, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s 's share of losses and/or loss adjustment expense paid under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer;
3. To reimburse itself for the Reinsurer’s 's share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
4. To fund a cash account in an amount equal to the Reinsurer’s 's share of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
5. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s 's share of the Company’s 's ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2) or B(4), or in the case of B(3), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 1 contract
Samples: Quota Share Reinsurance Contract (Amwest Insurance Group Inc)
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or in the District of Columbia, the Reinsurer agrees to fund its share of the Company’s ceded unearned premium and losses outstanding loss and loss adjustment expense reserves Loss Adjustment Expense Reserves (including incurred but not reported loss reservesIBNR) by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow accounts for the benefit of the Company; and/or
3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved.
B. . With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to the insurance regulatory authorities involved, will be issued for a term of at least one year (1) year, and will include an “evergreen clause,” , which automatically extends the term terms for at a least one (1) additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 thirty (30) days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this ContractAgreement, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one (1) or more of the following purposes:
1. To reimburse itself the Company for the Reinsurer’s share of unearned premiums premiums, returned to insureds the Company on account of policy cancellationsthe cancellation of Original Reinsurance Contract(s), unless paid in cash by the Reinsurer;.
2. To reimburse itself the Company for the Reinsurer’s share of losses any other Losses and/or loss adjustment expense Loss Adjustment Expenses paid under the terms of policies reinsured hereunderthe Original Reinsurance Contract(s), unless paid in cash by the Reinsurer;.
3. To reimburse itself the Company for the Reinsurer’s share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;.
4. To fund a cash account in an amount equal to the Reinsurer’s share of any ceded unearned premium and/or losses outstanding loss and loss adjustment expense reserves (including incurred but not reported loss Loss Adjustment Expense reserves) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
5. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s share of the Company’s ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2) or B(4), or in the case of B(3), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 1 contract
Samples: Excess of Loss Reinsurance Agreement (Eastern Insurance Holdings, Inc.)
Unauthorized Reinsurers. A. A) If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company’s 's ceded unearned premium and premium, outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) by:
1. Clean, irrevocable and unconditional letters Letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authoritiesCredit; and/or
and/or 2. Escrow accounts for the benefit of the Company; and/or
and/or 3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are is acceptable to the insurance regulatory authorities involved.
B. B) With regard to funding in whole or in part by letters Letters of creditCredit, it is agreed that each letter Letter of credit will be in a form acceptable to insurance regulatory authorities involved, Credit will be issued 12 IGF INSURANCE COMPANY AUTOMOBILE QUOTA SHARE REINSURANCE TERMS EFFECTIVE: JANUARY 1, 1996 PAGE 12 for a term of at least one year and will include an “"evergreen clause,” ", which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters Letters of credit Credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
1. To reimburse itself for the Reinsurer’s 's share of unearned premiums returned to insureds on account premium and/or losses and/or loss adjustment expenses paid under the terms of policy cancellationsoriginal policies reinsured hereunder, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s share of losses and/or loss adjustment expense paid under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer;
3. To reimburse itself for the Reinsurer’s 's share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
43. To fund a cash account in an amount equal to the Reinsurer’s 's share of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter Letter of credit Credit which is under non-renewal notice, if said letter Letter of credit Credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
54. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s 's share of the Company’s 's ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter Letter of credit Credit is in excess of the actual amount required for B(1), B(2) or B(4B(3), or in the case of B(3B(2), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn. The Reinsurers acknowledge that the Company is responsible to its regulated jurisdiction to ceded reserves through licensed reinsurers or post security as required in the appropriate regulated jurisdiction for which it is operating. Should the Reinsurer not be 13 IGF INSURANCE COMPANY AUTOMOBILE QUOTA SHARE REINSURANCE TERMS EFFECTIVE: JANUARY 1, 1996 PAGE 13 accepted as licensed in any jurisdiction and the Company is required to post security in accordance with the business written under this Contract, the Reinsurer shall, upon 30 days notice, post security for reserves under this Contract. The reserves shall be posted in accordance with the requirements of the jurisdiction regulations. Should the Reinsurer fail to post the necessary security for reserves within the 30 days of demand by the Company, then the Company will post the necessary reserves and charge the Reinsurer and interest expense of 1% per month on the amount of reserves posted on behalf of the Reinsurer's share.
Appears in 1 contract
Samples: Quota Share Reinsurance Contract (Symons International Group Inc)
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company’s 's ceded unearned premium and United States outstanding loss and loss adjustment expense reserves (including incurred but not reported all case reserves plus any reasonable amount estimated to be unreported from known loss reservesoccurrences) by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow accounts for the benefit of the Company; and/or
3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved.
B. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “"evergreen clause,” " which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
1. To reimburse itself for the Reinsurer’s share of unearned premiums returned to insureds on account of policy cancellations, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s 's share of losses and/or loss adjustment expense paid under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer;
32. To reimburse itself for the Reinsurer’s 's share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
43. To fund a cash account in an amount equal to the Reinsurer’s 's share of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported all case reserves plus any reasonable amount estimated to be unreported from known loss reservesoccurrences) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
54. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s 's share of the Company’s 's ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported all case reserves plus any reasonable amount estimated to be unreported from known loss reservesoccurrences), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(28(1) or B(48(3), or in the case of B(38(2), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 1 contract
Samples: Excess Catastrophe Reinsurance Contract (Safety Insurance Group Inc)
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company’s 's ceded unearned premium and outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow accounts for the benefit of the Company; and/or
3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved.
B. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “"evergreen clause,” " which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:said
1. To reimburse itself for the Reinsurer’s 's share of unearned premiums returned to insureds on account of policy cancellations, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s 's share of losses and/or loss adjustment expense expenses paid under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer;
3. To reimburse itself for the Reinsurer’s 's share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
4. To fund a cash account in an amount equal to the Reinsurer’s 's share of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
5. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s 's share of the Company’s 's ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1B(l), B(2) or B(4), or in the case of B(3), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 1 contract
Samples: Reinsurance Contract (Financial Pacific Insurance Group Inc)
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company’s 's ceded unearned premium and outstanding loss and allocated loss adjustment expense reserves (including incurred but not reported loss reserves) by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow accounts for the benefit of the Company; and/or
3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved.
B. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “"evergreen clause,” " which -------------------------------------------------------------------------------- [BENFIELD BLANCH LOGO] Xxxx 00 -------------------------------------------------------------------------------- automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
1. To reimburse itself for the Reinsurer’s 's share of unearned premiums returned to insureds on account of policy cancellations, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s 's share of losses and/or allocated loss adjustment expense paid under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer;
3. To reimburse itself for the Reinsurer’s 's share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
4. To fund a cash account in an amount equal to the Reinsurer’s 's share of any ceded unearned premium and/or outstanding loss and allocated loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
5. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s 's share of the Company’s 's ceded unearned premium and/or outstanding loss and allocated loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2) or B(4), or in the case of B(3), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 1 contract
Samples: Workers' Compensation Quota Share Reinsurance Contract (RTW Inc /Mn/)
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company’s ceded unearned premium and outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow accounts for the benefit of the Company; and/or
3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved.
B. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “evergreen clause,” which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
1. To reimburse itself for the Reinsurer’s share of unearned premiums returned to insureds on account of policy cancellations, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s share of losses and/or loss adjustment expense paid under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer;
32. To reimburse itself for the Reinsurer’s share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
43. To fund a cash account in an amount equal to the Reinsurer’s share of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
54. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s share of the Company’s ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2B(l) or B(4B(3), or in the case of B(3B(2), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 1 contract
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company’s 's ceded unearned premium and outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow accounts for the benefit of the Company; and/or
3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved.
B. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “"evergreen clause,” " which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
16 1. To reimburse itself for the Reinsurer’s 's share of unearned premiums returned to insureds on account of policy cancellations, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s share of losses and/or loss adjustment expense paid under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer;
3. To reimburse itself for the Reinsurer’s share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
4. To fund a cash account in an amount equal to the Reinsurer’s share of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
5. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s share of the Company’s ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2) or B(4), or in the case of B(3), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 1 contract
Samples: Semi Automatic Casualty Facultative Reinsurance Contract (Financial Pacific Insurance Group Inc)
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company’s 's ceded unearned premium and outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) by:
: 1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
and/or 2. Escrow accounts for the benefit of the Company; and/or
and/or 3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved.
. B. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “"evergreen clause,” " which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
: 1. To reimburse itself for the Reinsurer’s share of unearned premiums returned to insureds on account of policy cancellations, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s 's share of losses and/or loss adjustment expense paid under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer;
3; 2. To reimburse itself for the Reinsurer’s 's share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
4; 3. To fund a cash account in an amount equal to the Reinsurer’s 's share of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
5; 4. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s 's share of the Company’s 's ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2) or B(4B(3), or in the case of B(3B(2), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 1 contract
Samples: Reinsurance Contract (Meridian Insurance Group Inc)
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company’s ''s ceded unearned premium and United States outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow accounts for the benefit of the Company; and/or
3. Cash advances; 3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved.
B. If the Reinsurer is unauthorized in any province or jurisdiction of Canada, the Reinsurer agrees to fund 115% of its share of the Company''s ceded Canadian outstanding loss and loss adjustment expense reserves by:
1. A clean, irrevocable and unconditional letter of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a Canadian bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities, for no more than 15/115ths of the total funding required; and/or
2. Cash advances for the remaining balance of the funding required; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved.
C. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “"evergreen clause,""evergreen clause,” " which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal non- -renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
1. To reimburse itself for the Reinsurer’s ''s share of unearned premiums returned to insureds on account losses and/or loss adjustment expensess paid under the terms of policy cancellationspolicies reinsured hereunder, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s share of losses and/or loss adjustment expense paid under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer;
3. To reimburse itself for the Reinsurer’s ''s share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
43. To fund a cash account in an amount equal to the Reinsurer’s ''s share of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non---renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
54. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s ''s share of the Company’s ''s ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2C(1) or B(4C(3), or in the case of B(3C(2), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 1 contract
Samples: Reinsurance Pooling Agreement (Meridian Insurance Group Inc)
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America Missouri or the District of ColumbiaKansas, the Reinsurer agrees to fund its share of the Company’s 's ceded unearned premium and outstanding loss and loss adjustment expense reserves expenses reserves, whether allocated or unallocated, (including incurred but not reported loss reserves) by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow accounts for the benefit of the CompanyCompany acceptable to the insurance regulatory authorities; and/or
3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the this insurance regulatory authorities involved.
B. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “"evergreen clause,” " which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
1. To reimburse itself for the Reinsurer’s 's share of unearned premiums returned to insureds on account of policy cancellations, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s 's share of losses and/or loss adjustment expense paid under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer;
3. To reimburse itself for the Reinsurer’s 's share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
4. To fund a cash account in an amount equal to the Reinsurer’s 's share of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
5. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s 's share of the Company’s 's ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2) or B(4), or in the case of B(3), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 1 contract
Samples: Purchase and Sale Agreement (Medical Defense Holding Co)
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company’s 's ceded reserves for unearned premium and outstanding loss and loss adjustment expense reserves expenses (including reported and incurred but not reported loss reservesreported) by:relating to the Group AV business written and reinsured hereunder, so as to allow the Company to take full credit for reserves ceded in its statutory annual statement, as follows: Quota Share Reinsurance Agreement Originally Effective: April 15, 2006
1. Clean, irrevocable and unconditional letters letter(s) of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authoritiesauthorities (hereinafter referred to as “letter of credit”); and/or
2. Escrow accounts for the benefit of the Company; and/or
3. Cash advances; if, without such funding, funding a penalty would accrue to the Company on any financial statement it is required to file with the any insurance regulatory authorities involvedauthority including the states in which the business is written. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the Company and the insurance regulatory authorities involved.
B. If the A.M. Best rating of the Reinsurer is below or drops below a rating of “A” at any time while any obligation of the Reinsurer under this Agreement remains outstanding, the requirements for funding of the Company’s ceded reserves for unearned premium and outstanding loss and loss adjustment expenses, including reserves for incurred but not reported losses, as provided for under this Article or any other provision of the Agreement shall apply regardless of whether or not the Reinsurer is an unauthorized reinsurer.
C. With regard to funding in whole or in part by letters of creditcredit under this Article or any other provision of the Agreement, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, and will be issued for a term of at least one year and will include an “"evergreen clause,” ", which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 thirty (30) days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contractthe Agreement, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
1. To reimburse itself the Company for the Reinsurer’s share of unearned premiums returned to insureds on account of policy cancellations, unless paid in cash by the Reinsurer;.
2. To reimburse itself the Company for the Reinsurer’s share of losses and/or loss adjustment expense paid under the terms of policies Policies reinsured hereunder, unless paid in cash by the Reinsurer;.
3. To reimburse itself the Company for the Reinsurer’s share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;.
4. To fund a cash account in an amount equal to the Reinsurer’s share of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (reserves, including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 ten (10) days prior to its expiration date;. Quota Share Reinsurance Agreement Originally Effective: April 15, 2006
5. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s share of the Company’s 's ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1C(1), B(2C(2) or B(4C(4), or in the case of B(3C(3), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
D. It is further understood and agreed that, as a condition of this Agreement more fully described in Article XXI, the Reinsurer shall provide adequate reinsurance security to the Company in the form of a letter of credit that meets the requirements of this Article and Article XXI as well as the statutory qualifications for reinsurance credit in the Texas Insurance Code for unauthorized reinsurers. Prior to execution of this Agreement, the Company shall receive written confirmation from the bank that it has issued the letter of credit to the Company as the beneficiary in the minimum and initial amount of $15 million. Such letter of credit shall be adjusted immediately by the Reinsurer in accordance with the Letter of Credit Addendum attached to this Agreement if the sum of the obligations assumed by the Reinsurer under this Agreement at any time, as determined by the Company, are greater than $15 million. If the Reinsurer does not comply with the reinsurance security requirements of this Agreement and its addenda, the Company, at its sole discretion, shall have the right to terminate this Agreement immediately by giving notice in writing to the Reinsurer.
Appears in 1 contract
Samples: Quota Share Reinsurance Agreement (21st Century Holding Co)
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company’s 's ceded unearned premium and outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow accounts for the benefit of the Company; and/or
3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved.
B. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “"evergreen clause,” " which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
1. To reimburse itself for the Reinsurer’s share of unearned premiums returned to insureds on account of policy cancellations, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s 's share of losses and/or loss adjustment expense paid under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer;
32. To reimburse itself for the Reinsurer’s 's share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
43. To fund a cash account in an amount equal to the Reinsurer’s 's share of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
54. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s 's share of the Company’s 's ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2) or B(4B(3), or in the case of B(3B(2), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 1 contract
Samples: Third and Fourth Property Excess Catastrophe Reinsurance Contract (Mercury General Corp)
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company’s 's ceded unearned premium and outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow accounts for the benefit of the Company; and/or
3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved.
B. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “"evergreen clause,” " which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:to
1. To reimburse itself for the Reinsurer’s 's share of unearned premiums returned to insureds on account of policy cancellations, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s 's share of losses and/or loss adjustment expense expenses paid under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer;
3. To reimburse itself for the Reinsurer’s 's share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
4. To fund a cash account in an amount equal to the Reinsurer’s 's share of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
5. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s 's share of the Company’s 's ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2) or B(4), or in the case of B(3), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 1 contract
Samples: Property Quota Share Reinsurance Contract (Financial Pacific Insurance Group Inc)
Unauthorized Reinsurers. A. If the Reinsurer is Reinsurers are unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees Reinsurers agree to fund its their share of the Company’s ceded unearned premium 's outstanding portion of Ultimate Net Loss and outstanding loss and loss adjustment expense Pro rata Loss Adjustment Expense reserves (including incurred but not reported loss reserves) as determined by the Company, respectively by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow Trust accounts in conformity with New York Regulation 114 for the benefit of the CompanyCompany and as may be required by any other insurance regulatory authority; and/or
3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The ReinsurerReinsurers, at its their sole option, may fund in other than cash if its their method and form of funding are acceptable to the insurance regulatory authorities involvedinvolved and the Company.
B. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued 12 for a term of at least one year and will include an “"evergreen clause,” " which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer Reinsurers further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the ReinsurerReinsurers, but only for one or more of the following purposes:
1. To reimburse itself for the Reinsurer’s Reinsurers' share of unearned premiums returned to insureds on account the paid portion of policy cancellations, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s share of losses Ultimate Net Loss and/or loss adjustment expense Pro rata Loss Adjustment Expenses paid under the terms of policies reinsured hereunder, unless paid in cash by the ReinsurerReinsurers;
3. To reimburse itself for the Reinsurer’s share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
42. To fund a cash account in an amount equal to the Reinsurer’s Reinsurers' share of any ceded unearned premium and/or outstanding loss portion of Ultimate Net Loss and loss adjustment expense Pro rata Loss Adjustment Expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which (a) is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer Reinsurers 10 days prior to its expiration date, or (b) the Reinsurers have failed to increase to the amount requested by the Company, it being understood and nothing in this Contract in any way shall restrict or limit the rights of the Company under the terms of the letter of credit;
53. To refund to the Reinsurer Reinsurers any sum in excess of the actual amount required to fund the Reinsurer’s Reinsurers' share of the Company’s ceded unearned premium and/or 's outstanding loss portion of Ultimate Net Loss and loss adjustment expense Pro rata Loss Adjustment Expense reserves (including incurred but not reported loss reserves), if so requested by the ReinsurerReinsurers.
4. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2) or B(4), or in the case of B(3), the actual amount determined to be due, then the Company shall promptly return to the Reinsurer Reinsurers the excess amount so drawn.
Appears in 1 contract
Samples: Excess Cession and Event Reinsurance Contract (Miix Group Inc)
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund fund, on or before December 31, 2004, as respects Section I of Article VI, its share of the Company’s 's ceded United States unearned premium and outstanding loss and loss adjustment expense reserves (including incurred all case reserves plus any reasonable amount estimated to be unreported, as determined by the Company, from known loss occurrences) and, as respects Section II of Article VI, its share of the Company's ceded United States unearned premium and outstanding loss reserves (being the sum of all reinstatement premiums paid by the Company under the Underlying Contracts but not reported loss reservesyet recovered from the Reinsurer, plus the Company's reserves for reinstatement premiums due under the Underlying Contracts, if any) by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow accounts for the benefit of the Company; and/or
3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved.
B. If the Reinsurer is unauthorized in any province or jurisdiction of Canada, the Reinsurer agrees to fund, on or before December 31, 2004, as respects Section I of Article VI, 115% of its share of the Company's ceded Canadian unearned premium and outstanding loss and loss adjustment expense reserves (including all case reserves plus any reasonable amount estimated to be unreported, as determined by the Company, from known loss occurrences) and, as respects Section II of Article VI, 115% of its share of the Company's ceded Canadian unearned premium and outstanding loss reserves (being the sum of all reinstatement premiums paid by the Company under the Underlying Contracts but not yet recovered from the Reinsurer, plus the Company's reserves for reinstatement premiums due under the Underlying Contracts, if any) by:
1. A clean, irrevocable and unconditional letter of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a Canadian bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities, for no more than 15/115ths of the total funding required; and/or
2. Cash advances for the remaining balance of the funding required; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved.
C. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “"evergreen clause,” " which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration datedate or longer where required by insurance regulatory authorities. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
1. To As respects Section I , to reimburse itself for the Reinsurer’s 's share of unearned premiums returned to insureds on account of policy cancellationscancellations and, as respects Section II, to reimburse itself for the Reinsurer's share of reinstatement premiums paid by the Company under the terms of the Underlying Contracts, unless paid in cash by the Reinsurer;
2. To As respects Section I, to reimburse itself for the Reinsurer’s 's share of losses and/or loss adjustment expense paid under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer;
3. To As respects Sections I and II, to reimburse itself for the Reinsurer’s 's share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
4. To fund a cash account in an amount equal to the Reinsurer’s share 's share, as respects Section I, of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred all case reserves plus any reasonable amount estimated to be unreported, as determined by the Company, from known loss occurrences) and as respects Section II, any ceded outstanding loss reserves (being the sum of all reinstatement premiums paid by the Company under the Underlying Contracts but not reported loss reservesyet recovered from the Reinsurer, plus the Company's reserves for reinstatement premium due under the Underlying Contracts, if any) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
5. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s share 's share, as respects Section I, of the Company’s 's ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred all case reserves plus any reasonable amount estimated to be unreported, as determined by the Company, from known loss occurrences) and, as respects Section II, the Reinsurer's share of the Company's ceded unearned premium and/or outstanding loss reserves (being the sum of all reinstatement premiums paid by the Company under the Underlying Contracts but not reported loss reserves)yet recovered from the Reinsurer, plus the Company's reserves for reinstatement premium due under the Underlying Contracts, if any) if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1C(1), B(2C(2) or B(4C(4), or in the case of B(3C(3), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 1 contract
Samples: Reinsurance Contract (Philadelphia Consolidated Holding Corp)
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company’s 's ceded unearned premium and outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow accounts for the benefit of the Company; and/or
3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved.
B. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “"evergreen clause,” " which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
1. To reimburse itself for the Reinsurer’s 's share of unearned premiums returned to insureds on account of policy bond cancellations, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s 's share of losses and/or loss adjustment expense paid under the terms of policies bonds reinsured hereunder, unless paid in cash by the Reinsurer;
3. To reimburse itself for the Reinsurer’s 's share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
4. To fund a cash account in an amount equal to the Reinsurer’s 's share of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
5. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s 's share of the Company’s 's ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2) or B(4), or in the case of B(3), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 1 contract
Samples: Aggregate Stop Loss Reinsurance Contract (Amwest Insurance Group Inc)
Unauthorized Reinsurers. (Applies only to a reinsurer who does not qualify for full credit with any insurance regulatory authority having jurisdiction over the Company’s reserves, or which is or becomes rated B++ or lower by A.M. Best or rated BBB or lower by Standard & Poor’s)
A. If As regards policies or bonds issued by the Company coming within the scope of this Contract, the Company agrees that when it shall file with the insurance regulatory authority or set up on its books reserves for unearned premium (includes deposit premiums paid in excess of ceded premiums earned by the Reinsurer) losses covered hereunder which it shall be required by law to set up, it will forward to the Reinsurer a statement showing the proportion of such reserves which is unauthorized applicable to the Reinsurer. The Reinsurer hereby agrees to fund such reserves in any state respect of known outstanding losses that have been reported to the United States Reinsurer and allocated loss adjustment expense relating thereto, losses and allocated loss adjustment expense paid by the Company but not recovered from the Reinsurer, plus reserves for losses and allocated loss adjustment expenses incurred but not reported, as shown in the statement prepared by the Company (hereinafter referred to as “Reinsurer’s Obligations”) by funds withheld, cash advances or a Letter of America or Credit. The Reinsurer shall have the District option of Columbiadetermining the method of funding provided it is acceptable to the insurance regulatory authorities having jurisdiction over the Company’s reserves.
B. When funding by a Letter of Credit, the Reinsurer agrees to fund its share apply for and secure timely delivery to the Company of the Company’s ceded unearned premium and outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) by:
1. Cleana clean, irrevocable and unconditional letters Letter of credit Credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters Letters of credit Credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow accounts for the benefit of the Company; and/or
3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are containing provisions acceptable to the insurance regulatory authorities involved.
B. With regard having jurisdiction over the Company’s reserves in an amount equal to funding in whole or in part by letters the Reinsurer’s proportion of credit, it is agreed that each letter said reserves. Such Letter of credit will be in a form acceptable to insurance regulatory authorities involved, will Credit shall be issued for a term period of at least not less than one year year, and will include shall contain an “evergreen evergreen” clause,” , which automatically extends the term for at least one additional year at each from its date of expiration or any future expiration date unless written notice 30 days (60 days where 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 Letter of non-renewal is given Credit extended for any additional period.
C. The Reinsurer and Company agree that the Letters of Credit provided by the Reinsurer pursuant to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in provisions of this Contract, that said letters of credit Contract may be drawn upon at any time, notwithstanding any other provision of this Contract, and be utilized by the Company or its successors in interest at any timesuccessor, without diminution because by operation of the insolvency law, of the Company including, without limitation, any liquidator, rehabilitator, receiver or conservator of the Reinsurer, but only Company for one or more of the following purposes, unless otherwise provided for in a separate Trust Agreement:
1. To reimburse itself the Company for the Reinsurer’s share Obligations, the payment of unearned premiums returned to insureds on account which is due under the terms of policy cancellations, unless paid in cash by the Reinsurerthis Contract and which has not been otherwise paid;
2. To reimburse itself for make refund of any sum which is in excess of the actual amount required to pay the Reinsurer’s share of losses and/or loss adjustment expense paid Obligations under the terms of policies reinsured hereunderthis Contract, unless paid in cash if so requested by the Reinsurer;
3. To reimburse itself fund an account with the Company for the Reinsurer’s Obligations. Such cash deposit shall be held in an interest bearing account separate from the Company’s other assets, and interest thereon not in excess of the prime rate shall accrue to the benefit of the Reinsurer;
4. To pay the Reinsurer’s share of any other amounts claimed to be the Company claims are due hereunder, unless paid in cash by the Reinsurer;
4. To fund a cash account in an amount equal to the Reinsurer’s share of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
5. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s share of the Company’s ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurerthis Contract. In the event the amount drawn by the Company on any letter Letter of credit Credit is in excess of the actual amount required for B(1), B(2) subparagraphs 1 or B(4)3, or in the case of B(3)subparagraph 4, the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn. All of the foregoing shall be applied without diminution because of insolvency on the part of the Company or the Reinsurer.
D. The issuing bank shall have no responsibility whatsoever in connection with the propriety of withdrawals made by the Company or the disposition of funds withdrawn, except to ensure that withdrawals are made only upon the order of properly authorized representatives of the Company.
E. At quarterly intervals and on an estimated basis 45 days prior to each December 31, or more frequently as agreed but never more frequently than quarterly, the Company shall prepare a specific statement of the Reinsurer’s Obligations, for the sole purpose of amending the Letter of Credit, in the following manner:
1. If the statement shows that the Reinsurer’s Obligations exceed the balance of credit as of the statement date, the Reinsurer shall, within 30 days after receipt of notice of such excess, secure delivery to the Company of an amendment to the Letter of Credit increasing the amount of credit by the amount of such difference.
2. If, however, the statement shows that the Reinsurer’s Obligations are less than the balance of credit as of the statement date, the Company shall, within 30 days after receipt of written request from the Reinsurer, release such excess credit by agreeing to secure an amendment to the Letter of Credit reducing the amount of credit available by the amount of such excess credit.
Appears in 1 contract
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company’s ceded unearned premium and outstanding loss and loss adjustment expense Loss Adjustment Expense reserves (including incurred but not reported loss reserves) by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow accounts for the benefit of the Company; and/or
3. Trust Agreement; and/or
4. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved.
B. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “evergreen clause,” which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
1. To reimburse itself for the Reinsurer’s share of unearned premiums returned to insureds on account of policy Policy cancellations, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s share of losses and/or loss adjustment expense Loss Adjustment Expense paid under the terms of policies Policies reinsured hereunder, unless paid in cash by the Reinsurer;
3. To reimburse itself for the Reinsurer’s share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
4. To fund a cash account in an amount equal to the Reinsurer’s share of any ceded unearned premium and/or outstanding loss and loss adjustment expense Loss Adjustment Expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
5. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s share of the Company’s ceded unearned premium and/or outstanding loss and loss adjustment expense Loss Adjustment Expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2) or B(4), or in the case of B(3), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
C. if a Subscribing Reinsurer fails to fund its share of the Company’s ceded unearned premium and outstanding loss, and Loss Adjustment Expense reserves (including incurred but not reported loss reserves) under this Contract (the “Funding Obligation”), the Company may, at its option, require the Subscribing Reinsurer to pay, and the Subscribing Reinsurer agrees to pay, an interest charge on the Funding Obligation calculated on the last business day of each month as follows:
1. The number of full days that have expired since December 31 of the calendar year in which the funding was required; times
2. 1 365ths of the sum of the six-month United States Treasury Bill rate as quoted in The Wall Street Journal on the first business day of the month for which the calculation is made plus 4.0%; times
Appears in 1 contract
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company’s 's ceded unearned premium and outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow accounts for the benefit of the Company; and/or
3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved.
B. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “"evergreen clause,” " which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
1. To reimburse itself for the Reinsurer’s 's share of unearned premiums returned to insureds on account of policy cancellations, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s 's share of losses and/or loss adjustment expense expenses paid under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer;
3. To reimburse itself for the Reinsurer’s 's share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
4. To fund a cash account in an amount equal to the Reinsurer’s 's share of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
5. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s 's share of the Company’s 's ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2) or B(4), or in the case of B(3), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 1 contract
Samples: Property Quota Share Reinsurance Contract (Financial Pacific Insurance Group Inc)
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company’s 's ceded unearned premium and United States outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) by:
: 1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
and/or 2. Escrow accounts for the benefit of the Company; and/or
and/or 3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved.
B. If the Reinsurer is unauthorized in any province or jurisdiction of Canada, the Reinsurer agrees to fund 115% of its share of the Company's ceded Canadian outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) by: 1. A clean, irrevocable and unconditional letter of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a Canadian bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities, for no more than 15/115ths of the total funding required; and/or 2. Cash advances for the remaining balance of the funding required; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved.
C. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “"evergreen clause,” " which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
: 1. To reimburse itself for the Reinsurer’s share of unearned premiums returned to insureds on account of policy cancellations, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s 's share of losses and/or loss adjustment expense paid under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer;
3; 2. To reimburse itself for the Reinsurer’s 's share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
4; 3. To fund a cash account in an amount equal to the Reinsurer’s 's share of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
5; 4. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s 's share of the Company’s 's ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2C(1) or B(4C(3), or in the case of B(3C(2), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 1 contract
Samples: Property Excess Per Risk Reinsurance Contract (Gryphon Holdings Inc)
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company’s 's ceded unearned premium and outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow accounts for the benefit of the Company; and/or
3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved.
B. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “"evergreen clause,” " which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
1. To reimburse itself for the Reinsurer’s 's share of unearned premiums returned to insureds on account losses paid under the terms of policy cancellationsbonds or policies reinsured hereunder, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s share of losses and/or loss adjustment expense paid under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer;
3. To reimburse itself for the Reinsurer’s 's share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
43. To fund a cash account in an amount equal to the Reinsurer’s 's share of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
54. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s 's share of the Company’s 's ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2) or B(4B(3), or in the case of B(3B(2), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 1 contract
Samples: Aggregate Stop Loss Reinsurance Contract (Amwest Insurance Group Inc)
Unauthorized Reinsurers. A. If the Reinsurer is unauthorized in any state of the United States of America or the District of Columbia, the Reinsurer agrees to fund its share of the Company’s 's ceded unearned premium and United States outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) by:
1. Clean, irrevocable and unconditional letters of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or
2. Escrow accounts for the benefit of the Company; and/or
3. Cash advances; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved. The Reinsurer, at its sole option, may fund in other than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved.
B. If the Reinsurer is unauthorized in any province or jurisdiction of Canada, the Reinsurer agrees to fund 115% of its share of the Company's ceded Canadian outstanding loss and loss adjustment expense reserves by:
1. A clean, irrevocable and unconditional letter of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a Canadian bank or banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities, for no more than 15/115ths of the total funding required; and/or
2. Cash advances for the remaining balance of the funding required; if, without such funding, a penalty would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved.
C. With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory authorities involved, will be issued for a term of at least one year and will include an “"evergreen clause,” " which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letters of credit may be drawn upon by the Company or its successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes:
1. To reimburse itself for the Reinsurer’s share of unearned premiums returned to insureds on account of policy cancellations, unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer’s 's share of losses and/or loss adjustment expense paid under the terms of policies reinsured hereunder, unless paid in cash by the Reinsurer;
32. To reimburse itself for the Reinsurer’s 's share of any other amounts claimed to be due hereunder, unless paid in cash by the Reinsurer;
43. To fund a cash account in an amount equal to the Reinsurer’s 's share of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the Reinsurer 10 days prior to its expiration date;
54. To refund to the Reinsurer any sum in excess of the actual amount required to fund the Reinsurer’s 's share of the Company’s 's ceded unearned premium and/or outstanding loss and loss adjustment expense reserves (including incurred but not reported loss reserves), if so requested by the Reinsurer. In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for B(1), B(2C(1) or B(4C(3), or in the case of B(3C(2), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn.
Appears in 1 contract
