Additional Withdrawals Clause Samples

Additional Withdrawals. Notwithstanding any other provision of this Agreement, the Ceding Company or any successor by operation of law, including any liquidator, rehabilitator, receiver or conservator of the Ceding Company may draw upon the Letter of Credit or the assets held in the Reinsurance Trust Account at any time, without diminution because of the insolvency of any Party only for the following purposes: (a) to reimburse the Ceding Company for the Reinsurer’s share of premiums returned to the owners of the Covered Insurance Policies on account of cancellation of such policies; (b) to reimburse the Ceding Company for the Reinsurer’s share of surrenders and benefits or losses paid by the Ceding Company pursuant to the provisions of the Covered Insurance Policies; (c) to pay any other amount that the Ceding Company claims is due under this Agreement; or (d) in the event that the Ceding Company receives notice of nonrenewal of any Letter of Credit or termination of any trust agreement to fund an account with the Ceding Company in an amount at least equal to the Required Balance. In the event that any amount drawn by the Ceding Company is subsequently determined not to be due, the Ceding Company shall promptly return to the Reinsurer the excess amounts so drawn and, until such excess amounts are returned to the Reinsurer, such amounts, together with interest thereon accrued at the Interest Rate (or the Alternative Rate, if applicable), shall be held by the Ceding Company in trust for the complete and sole benefit of the Reinsurer and the Reinsurer shall be entitled to all rights, title and interest in said amounts.