Common use of Accounting and Settlement Clause in Contracts

Accounting and Settlement. 8.01. Amounts Due the Reinsurer or the Company. (a) The payments required to be made under Section 6.01 shall be paid in cash or Cash Equivalents and shall be made monthly by wire transfer of funds to an account designated by the Company by 11 a.m. on the second Business Day following the end of each month with respect to the Commissions and Expenses incurred as of the close of business on the last day of each month (or partial month) during the term of this Agreement; provided, that the Company notifies the Reinsurer by 2 p.m. on the first Business Day following the end of each month of the amounts due from the Reinsurer with respect to such month. (b) The payments required to be made under Section 7.01 (other than the payment on the Closing Date pursuant to Section 7.01(b)) shall be paid in cash or Cash Equivalents and shall be made weekly by wire transfer of funds to an account designated by the Company by 11 a.m. on each Thursday following the Closing Date with respect to the Benefits paid as of the close of business on the second Business Day next preceding such Thursday; provided, that the Company notifies the Reinsurer by 2 p.m. on the Business Day prior to such Thursday of the amounts due from the Reinsurer with respect to such week. (c) If amounts due to be paid by the Reinsurer to the Company pursuant to Section 8.01(a) or 8.01(b) above cannot be determined at such dates on an exact basis, such payments may be determined on an estimated basis, and any adjustments subsequently required to reflect actual data shall be made on the weekly or monthly payment date, as applicable, following the date that such actual data is available. (d) Except as otherwise specifically provided herein, all other amounts due to be paid to either the Reinsurer or the Company under this Agreement shall be determined on a net basis, giving full effect to Section 3.06 hereof, as of the last day of each Accounting Period. Any net amount due from the Company to the Reinsurer shall be paid in cash or Cash Equivalents no later than the day on which the Quarterly Report showing such net amount, as described in Section 8.02, is due. Any net amount due from the Reinsurer to the Company shall be paid no later than ten (10) Business Days following the receipt of such Quarterly Report from the Company. If amounts due to be paid cannot be determined at such dates on an exact basis, such payments may be determined on an estimated basis, and any adjustments subsequently required to reflect actual data shall be made at the date upon which any amended report, based on actual data, is due to be provided pursuant to Section 8.04.