Common use of CLAIM SETTLEMENTS Clause in Contracts

CLAIM SETTLEMENTS. PRUCO OF NJ will use its standard claim practice and guidelines in the adjudication of all claims on policies reinsured under this Agreement. Until such time as PRUCO OF NJ has systems capability to administer the right of AUSA to opt out of contested claims, claim settlements made by PRUCO OF NJ, including compromises, shall be unconditionally binding on AUSA. AUSA will share in any reduced amount in proportion to its share of the liability.