ACCOUNTS AND LOSS SETTLEMENTS Clause Samples

ACCOUNTS AND LOSS SETTLEMENTS. A. Within 30 (thirty) days following the end of each calendar quarter, the Company shall report to the Reinsurer, the amount of: 1. Net Earned Premium; 2. Ultimate Net Loss and Loss Adjustment Expenses paid; 3. Ultimate Net Loss and Loss Adjustment Expenses outstanding (including IBNR). For the purpose of this Agreement, Net Earned Premium shall be defined as the Company’s gross Brokerage premium less premiums paid for specific excess reinsurance, property catastrophe reinsurance and facultative reinsurance, if any, which inure to the benefit of this Agreement, and before any cessions to quota share reinsurance. If the ratio of 2. over 1. exceeds 52.5%, the Reinsurer shall pay the Company the difference no later than 15 (fifteen) days following receipt of the quarterly report by direct wire transfer. Reports shall continue until final settlement of all ceded Ultimate Net Loss and Loss Adjustment Expenses hereunder. Notwithstanding the above, the Company shall advise the Reinsurer promptly of all Ultimate Net Losses, which, in the opinion of the Company, may result in a claim hereunder and of all subsequent developments thereto which, in the opinion of the Company, may materially affect the position of the Reinsurer. Inadvertent omission or oversight in dispatching such advises shall in no way affect the liability of the Reinsurer. However, the Company shall notify the Reinsurer of such omission or oversight promptly upon its discovery. B. All Ultimate Net Loss settlements made by the Company on Business Covered, whether under policy terms and conditions or by way of compromise, shall be in the sole discretion of the Company and shall be unconditionally binding on the Reinsurer. Upon satisfactory proof of loss, the Reinsurer shall pay or allow, as applicable, its proportional share of each such settlement in accordance with this Agreement.