UNEARNED PREMIUM RESERVES. (Applies to those Reinsurers who cannot qualify for credit by the State having jurisdiction over the Company's Unearned Premium Reserves). As regards policies or bonds issued by the Company coming within the scope of this Contract, the Company agrees that when it shall set up on its books reserves for unearned premiums which it shall be required to set up by law it will forward to the Reinsurers a statement showing the proportion of such unearned premium reserves which is applicable to them. The Reinsurers hereby agree that they will apply for and secure delivery to the Company a clean irrevocable Letter of Credit issued by any bank acceptable to the Governmental Authority having jurisdiction over the Company's Unearned Premium Reserves in an amount equal to Reinsurer's proportion of said Unearned Premium Reserves.
UNEARNED PREMIUM RESERVES. (i) On February 12, 2020, the Company shall remit to HCPCI by wire transfer of immediately available funds the Initial UPR Transfer Amount, which will not reflect an estimate of return Premiums attributed to Subject Policies that are cancelled prior to the Policy Replacement Date (the “Return Premium Amount”).
