Common use of Assumption of Liability Clause in Contracts

Assumption of Liability. Pursuant to the Endorsement, each Reinsurer has agreed to become directly liable to the Original Insured for (i) its quota share percentage of all of the Covered Amounts (and for any late payment fees attributable to the applicable Reinsurer) ceded to the Reinsurer hereunder and under the I&L Agreement and (ii) any Terminal Settlement Amount or True-Up Amount payable by such Reinsurer pursuant to the terms of this Contract, but only and to the extent that the Original Insured does not receive payment of a Covered Amount (or any applicable late payment fee) or such Terminal Settlement Amount or True-Up Amount, as applicable, as and when required under the Policy.