Common use of Contestable Claims Clause in Contracts

Contestable Claims. The Ceding Company will promptly notify the Reinsurer of its intention to contest, compromise, or litigate a claim involving a reinsured policy. The Ceding Company will also promptly and fully disclose all information relative to the claim. If the Reinsurer accepts participation, the Reinsurer will promptly notify the Ceding Company in writing. The Ceding Company will then promptly advise the Reinsurer of all significant developments in the claim investigation, including notification of any legal proceedings against it in response to a denial of a claim. If the Reinsurer does not accept participation, the Reinsurer will then fulfill its obligation by paying the Ceding Company its full share of reinsurance and will not share in any subsequent reduction or increase in liability. If the Reinsurer accepts participation and the Ceding Company's contest, compromise, or litigation results in a reduction or increase in liability, the Reinsurer will share proportionately in any such reduction or increase.

Contestable Claims. The Ceding Company will promptly notify the Reinsurer of its intention to contest, compromise, or litigate a claim involving a reinsured policy. The Ceding Company will also promptly and fully disclose all information relative to the claim. If the Reinsurer accepts participation, the Reinsurer will promptly notify the Ceding Company in writing. The Ceding Company will then promptly advise the Reinsurer of all significant developments in the claim investigation, including notification of any legal proceedings against it in response to a denial of a claim. If the Reinsurer does not accept participation, the Reinsurer will then fulfill its obligation by paying the Ceding Company its full share of reinsurance and will not share in any subsequent reduction or increase in liability. If the Reinsurer accepts participation and the Ceding Company's contest, compromise, or litigation results in a reduction or increase in liability, the Reinsurer will share proportionately in any such reduction or increase, subject to the terms of Article 9.8.