Common use of AND OMISSIONS Clause in Contracts

AND OMISSIONS. 1. The List of Risks Reinsured is the basis for the reinsurance coverage provided by Reinsurer for the respective calendar year on the reinsurance in force at the beginning of that year Any unintentional clerical error or omission in the amounts reinsured shall not be corrected during the current calendar year but will be reflected in the List of Risks Reinsured for the subsequent calendar year, unless by such error or omission a. any risk not eligible for reinsurance under this Agreement is shown as reinsured, or b. the amount retained by the ceding Company exceeds its retention at issue (Exhibit II) by more than $5,000 or c. the benefits reinsured by Reinsurer and other reinsurers exceed the benefits insured under the policy less the Ceding Company’s retention thereon, if any, or d. the amount of any benefit reinsured by Reinsurer exceeds 125% of the corresponding amount during the preceding calendar year, or e. the amount of any benefit reinsured by Reinsurer exceeds the Automatic Coverage (Exhibit III). 2. In those cases described in Paragraph 1, Reinsurer shall be notified in writing and the reinsurance shall be corrected retroactively. Correction of the reinsurance premium will be accounted for in the List of Amendments applicable to the calendar year in which the error was discovered. The Ceding Company shall also check its entire reinsured portfolio for similar discrepancies. 3. Any other failure of either party to comply with any provision of this Agreement, if shown to be unintentional and the result of misunderstanding or oversight, shall be corrected by restoring both parties to the positions they would have occupied had no such error or oversight occurred.