Commutation. 1. Except as provided in subparagraph 3., not less than 36 months or more than 60 months after the end of the Contract Year, the Company shall file a final Proof of Loss Report(s), with the exception of Companies having no reportable Losses as described in sub-subparagraph a. Otherwise, the final Proof of Loss Report(s) is required as specified in sub-subparagraph b. The Company and SBA may mutually agree to initiate commutation after 36 months and prior to 60 months after the end of the Contract Year. The commutation negotiations shall begin at the later of 60 months after the end of the Contract Year or upon completion of the FHCF claims examination for the Company and the resolution of all outstanding examination issues.
a. If the Company’s most recently submitted Proof of Loss Report(s) indicates that it has no Losses resulting from Covered Events during the Contract Year, the SBA shall after 36 months request that the Company execute a final commutation agreement. The final commutation agreement shall constitute a complete and final release of all obligations of the SBA with respect to Losses. If the Company chooses not to execute a final commutation agreement, the SBA shall be released from all obligations 60 months following the end of the Contract Year if no Proof of Loss Report indicating reimbursable Losses had been filed and the commutation shall be deemed concluded. However, during this time, if the Company determines that it does have Losses to report for FHCF reimbursement, the Company must submit an updated Proof of Loss Report prior to the end of 60 months after the Contract Year and the Company shall be required to follow the commutation provisions and time frames otherwise specified in this section.
b. If the Company has submitted a Proof of Loss Report indicating that it does have Losses resulting from a Covered Event during the Contract Year, the SBA may require the Company to submit within 30 days an updated, current Proof of Loss Report for each Covered Event during the Contract Year. The Proof of Loss Report must include all paid Losses as well as all outstanding Losses and incurred but not reported Losses, which are not finally settled and which may be reimbursable Losses under this Contract, and must be accompanied by supporting documentation (at a minimum an adjuster’s summary report or equivalent details) and a copy of a written opinion on the present value of the outstanding Losses and incurred but not reported Losses by the Com...
Commutation. 1. Not less than 36 months or more than 60 months after the end of the Contract Year, the Company shall report to the FHCF all claims and losses, both reported and unreported, for the Contract Year which are not finally settled and which may be reimbursable losses under this Contract. The Company and the SBA or their respective representatives may, by mutual agreement, determine the capitalized value of all claims and losses, both reported and unreported, resulting from Loss Occurrences commencing during the Contract Year, and the Company shall provide the SBA with a copy of a written opinion on such capitalized value by the Company’s certifying actuary. Payment by the SBA of its portion of any amount or amounts so mutually agreed and certified by the Company’s certifying actuary shall constitute a complete and final release of the SBA in respect of all claims and losses, both reported and unreported, under this Contract.
2. If agreement on capitalized value cannot be reached within 60 days after the Company reports its claims and losses to the FHCF, the Company and the SBA may mutually appoint an actuary or appraiser to investigate, determine and capitalize such claims or losses. If both parties then agree, the SBA shall pay its portion of the amount so determined to be the capitalized value of such claims or losses.
3. If the parties fail to agree, then any difference shall be settled by a panel of three actuaries, one to be chosen by each party and the third by the two so chosen. If either party does not appoint an actuary within 30 days, the other party may appoint two actuaries. If the two actuaries fail to agree on the selection of a third actuary within 30 days of their appointment, each of them shall name two, of whom the other shall decline one and the decision shall be made by drawing lots. All the actuaries shall be regularly engaged in the valuation of property claims and losses and shall be members of the Casualty Actuarial Society and of the American Academy of Actuaries. None of the actuaries shall be under the control of either party to this Contract. Each party shall submit its case to its actuary within 30 days of the appointment of the third actuary. The decision in writing of any two actuaries, when filed with the parties hereto, shall be final and binding on both parties.
4. The reasonable and customary expense of the actuaries and of the commutation (as a result of 2. and 3. above) shall be equally divided between the two parties. Sai...
Commutation. This term means the estimation, payment, and complete discharge of all future obligations for Losses, regardless of future loss development. The final Commutation shall constitute a complete and final release of all obligations of the SBA with respect to Losses. Commutation may be per Covered Event or by Contract Year as determined by the FHCF.
Commutation. A. This Article will only take effect should the parties hereto mutually agree to commute one or any number of the Workers’ Compensation losses under this Contract. There will be no obligation on the part of either party to so commute.
B. Should the Company become liable for any loss hereunder, and be required to make periodic payments to or otherwise set up on its books reserves for such loss, at any time after seven years following the date of such loss and upon mutual agreement of the Company and the Reinsurer, said loss (including Loss Adjustment Expenses) may be commuted. If the value of said loss, including amounts falling to the share of the Reinsurer, cannot be agreed upon by the parties to this Contract, said value may be determined by employing one of the following:
1. A present value calculation based on the following criteria:
a. In respect of all unindexed benefits, the present value calculation shall be determined based upon an annual discount equal to the five-year U.S. Treasury note rate at the time of commutation.
b. In respect of all future medical costs, the present value calculation shall be based upon the Company’s evaluation of long term medical care and rehabilitation requirements, using an annual discount equal to the five-year U.S. Treasury note rate at the time of commutation, and an annual escalation equal to the Medical Care Consumer Price Index (CPI-MC) at the time of commutation.
c. Where applicable, impaired life expectancy, survivors’ life expectancy, as well as remarriage probability shall be reflected in the calculation by employing tables required by statute.
2. The Company may determine the present value by purchasing (or obtaining a quotation for) an annuity from any A. M. Best’s Class VIII IIA+II rated or better annuity writer, with an AAA rating by Standard & Poor’s.
C. The Reinsurer’s proportion of the amount determined will be considered its total liability for such loss and the lump sum payment thereof shall constitute a complete release of both parties from liability hereunder for the commuted losses.
D. This Article shall survive the expiration or termination of this Contract. Effective: July 1, 2008 DOC: August 21, 2008
Commutation. 1 Employees who are entitled to supplementary, continued or follow-on benefit may ask the governing board to commute their benefit into a lump-sum payment in lieu of the remaining benefit duration.
Commutation. A. Within sixty (60) days following twenty four (24) months after the close of any one annual period of this Contract, the Company may commute all liability for said annual period hereunder.
B. The Company shall report to the Reinsurer the commuted value of such claims for the applicable annual period, which shall be deemed to be the positive balance of:
1. Reinsurance premiums paid or payable hereunder for the applicable annual period; less
2. Expenses incurred by the Reinsurer at a rate of twenty seven point zero percent (27.0%) of the Net Written Premium for the applicable annual period hereof: less
3. Reinsurance recoveries previously made hereunder for Policies allocated to this Contract for the applicable annual period.
C. The Reinsurer shall remit payment to the Company of the commuted value (as determined above) within thirty (30) days following receipt of the Company's report. Such payment shall constitute a full and final release of all liability (known or unknown) under this Contract for the applicable annual period.
Commutation. The governing in- strument must prohibit commutation (prepayment) of the term holder’s in- terest.
Commutation. The Parties shall settle their respective claims and obligations under, and thereupon terminate, this Agreement upon (i) the Termination Date or (ii) if an Event has occurred during the Risk Period, the first anniversary of the last Payment Date on which any Loss Payment has been paid to the Cedant (the “Commutation Date” and, such termination, a “Commutation”). Such Commutation shall be effected as of the Commutation Date. Back to Contents Upon a Commutation, the funds in the Collateral Account released to satisfy the obligation of the Reinsurer to the Cedant shall be only with respect to Loss Payments not previously paid by the Reinsurer. The Reinsurer shall use the funds paid by the Cedant pursuant to this Article XI to pay any amounts due to the Swap Counterparty and to the Noteholders in accordance with the provisions of the Indenture. If an Event has occurred for which the Reinsurer has made a Loss Payment to the Cedant, the Cedant shall submit to the Reinsurer a proof of loss claim with respect to such Event prior to the Commutation Date (“Proof of Loss Claim”) substantially in the form of Exhibit C hereto. Such Proof of Loss Claim shall present the Cedant’s Ultimate Net Loss with respect to such Event. If the aggregate Loss Payments paid to the Cedant in respect to an Event exceeds the Ultimate Net Loss for such Event, the Cedant shall refund the difference to the Reinsurer, with interest computed at LIBOR, by the Commutation Date. If the aggregate Loss Payments paid to the Cedant in respect to an Event are less than the Ultimate Net Loss for such Event, the Reinsurer shall under no circumstances be obligated to make any further payments to the Cedant with respect to such Event.
Commutation. The Company or the Reinsurers may, at any time express their desire to the other party to commute all losses applicable to this Agreement and which are still unsettled. In such event the Company and the Reinsurers shall mutually determine and evaluate such losses and the payment by the Reinsurers of their proportion of the amount so ascertained and mutually agreed to be the value of such losses shall relieve them of all further liability, in respect of this Agreement in respect of such known and/or unknown losses. If the Company and Reinsurers are unable to eventually agree upon the value of said losses, no commutation of such losses shall be made.
Commutation. If the Beneficiary designated is the executor or administrator of the Participant or a corporation, association, partnership or trustee, any Retirement Annuity payments to which the beneficiary becomes entitled will be commuted and paid in one sum. If a Beneficiary dies after having become entitled to receive Retirement Annuity payments, any remainder of such payments will, unless otherwise provided by the Participant, be commuted and paid in one sum to the executor or administrator of the Beneficiary. A Participant may elect that any Retirement Annuity payments to which his/her Beneficiary becomes entitled will be commuted and paid in one sum; or, in the absence of such election and unless otherwise provided by the Participant, a Beneficiary who is entitled to receive the Retirement Annuity payments may elect that the remainder of such payments be commuted and paid in one sum. Any such commutation will be made at the rate of interest, compounded annually, used in computing the annuity purchase liability or the premium paid for the Retirement Annuity.
