Common use of Underwriter's Liability Clause in Contracts

Underwriter's Liability. 1. The Underwriter shall be liable only if and when the Ultimate Net Loss sustained by the Assured and covered hereunder in respect of interests described herein in any one Occurrence exceeds the amount specified as the deductible on the Policy Declaration in effect at the time of the commencement of the Occurrence. The Underwriter shall thereupon be liable for the amount by which the said Ultimate Net Loss exceeds the amount specified as the deductible on the Policy Declaration in effect at the time of the commencement of the Occurrence. 2. Irrespective of the number and timing of losses, the Underwriter shall be liable in respect of any one Occurrence only up to a limit of the amount specified as the policy limit per Occurrence on the Policy Declaration in effect at the time of the commencement of the Occurrence. 3. The policy limits per Occurrence applicable under this policy and any other policy or policies issued by the Underwriter having the same Named Insured and the same expiration date (a) Notwithstanding Condition F.1 with respect to one or more losses from a single Occurrence (other than a Designated Named Windstorm Occurrence) arising in any manner out of the Assured's insured interest in any joint venture(s), co-venture(s), joint lease(s), joint operating agreement(s), partnership(s) or affiliated company or companies not otherwise reinsured as an entire entity or entities under this policy, the deductible shall be subject to adjustment as follows: (i) when only one loss from a single Occurrence is involved, the deductible shall be adjusted to an amount (not less than one million dollars ($1,000,000)) computed by multiplying the deductible otherwise applicable under this policy by the Assured's percentage interest in such loss; (ii) when the Assured's insured interest in more than one loss from a single Occurrence is involved, the deductible shall be adjusted to an amount (not less than one million dollars ($1,000,000)) computed by multiplying the deductible otherwise applicable under the policy by the percentage derived by dividing the sum of the Assured's interests in all such losses by the sum of all such losses (subject to a maximum of one hundred percent (100%)).

Underwriter's Liability. 1. The Underwriter shall be liable only if and when the Ultimate Net Loss sustained by the Assured and covered hereunder in respect of interests described herein in any one Occurrence exceeds the amount specified as the deductible on the Policy Declaration in effect at the time of the commencement of the Occurrence. The Underwriter shall thereupon be liable for the amount by which the said Ultimate Net Loss exceeds the amount specified as the deductible on the Policy Declaration in effect at the time of the commencement of the Occurrence. 2. Irrespective of the number and timing of losses, the Underwriter shall be liable in respect of any one Occurrence only up to a limit of the amount specified as the policy limit per Occurrence on the Policy Declaration in effect at the time of the commencement of the Occurrence. 3. The policy limits per Occurrence applicable under this policy and any other policy or policies issued by the Underwriter having the same Named Insured and the same expiration datedate as this policy shall in the aggregate be the policy limit per Occurrence referred to in Condition F.2. (a) Notwithstanding Condition F.1 with respect to one or more losses from a single Occurrence (other than a Designated Named Windstorm Occurrence) arising in any manner out of the Assured's insured interest in any joint venture(s), co-venture(s), joint lease(s), joint operating agreement(s), partnership(s) or affiliated company or companies not otherwise reinsured insured as an entire entity or entities under this policy, the deductible shall be subject to adjustment as follows: (i) when only one loss from a single Occurrence is involved, the deductible shall be adjusted to an amount (not less than one million dollars ($1,000,000)) computed by multiplying the deductible otherwise applicable under this policy by the Assured's percentage interest in such loss; (ii) when the Assured's insured interest in more than one loss from a single Occurrence is involved, the deductible shall be adjusted to an amount (not less than one million dollars ($1,000,000)) computed by multiplying the deductible otherwise applicable under the policy by the percentage derived by dividing the sum of the Assured's interests in all such losses by the sum of all such losses (subject to a maximum of one hundred percent (100%)). (b) Notwithstanding Conditions F.1 and F.4a, when a single Occurrence (other than a Designated Named Windstorm Occurrence) causes a loss in which the Assured's interest is one hundred percent (100%) and also a loss or losses in which the Assured's interest is less than one hundred percent (100%), the full amount of the deductible shall be first deducted from the loss in which the Assured has a one hundred percent (100%) interest and the remainder of such deductible, if any, shall be adjusted in accordance with Condition F.4a(ii) and deducted from the total of the losses in which the Assured has less than a one hundred percent (100%) interest. (c) Notwithstanding Conditions F.1, F.4a and F.4b, when an Assured’s percentage interest in a joint venture fluctuates, as respects a loss from a single Occurrence (other than a Designated Named Windstorm Occurrence), the deductible shall be adjusted to an amount (not less than one million dollars ($1,000,000)) computed by multiplying the deductible otherwise applicable under the policy by the percentage derived by dividing the Assured’s allocable share of the loss by the total amount of the loss. 5. Where one Occurrence causing loss to the Assured also causes loss to one or more other Assureds of the Underwriter, or Assured(s) of Named Insured(s) holding reinsurance policy(ies) issued by the Underwriter, the cumulative liability of the Underwriter as respects the Assured and all such Assured(s) and Named Insured(s) combined shall never exceed an amount (the “Aggregation Limit”) determined by and at the discretion of the Board of Directors from time to time.1 Such Aggregation Limit may be set by the Board of Directors at different amounts in respect of any Designated Named Windstorm Occurrence and any other Occurrence. The determination whether or not loss to the Assured, other Assureds and/or Named Insureds arises out of one Occurrence shall be made by and at the discretion of the Board of Directors. When the cumulative 1 The Board of Directors resolved on July 20, 2011 that effective January 1, 2012 the Aggregation Limit in respect of any Designated Named Windstorm Occurrence shall be seven hundred fifty million dollars ($750,000,000) and further resolved on July 22, 2021 that effective January 1, 2022 the Aggregation Limit for any other Occurrence shall be one billion three hundred fifty million dollars ($1,350,000,000). liability of the Underwriter exceeds the Aggregation Limit, the amount recoverable shall be prorated in accordance with a formula1 established by the Underwriter. As respects any Designated Named Windstorm Occurrence only the portion of Named Windstorm Losses exclusive of any amount within any Quota Share Retention or subject to Retrospective Premium shall be taken into account as respects the Aggregation Limit. 6. There shall be an annual aggregate limit for the Named Insured as respects all Designated Named Windstorm Occurrences taking place during any calendar year equal to the Designated Named Windstorm Annual Aggregate Limit.