Common use of Contested Claims Clause in Contracts

Contested Claims. The Ceding Company will notify the Reinsurer of its intention to contest, compromise, or litigate a claim involving a reinsured policy. If the Ceding Company's contest, compromise, or litigation results in a reduction in its liability, the Reinsurer will share in the reduction in the proportion that the Reinsurer's net liability bears to the sum of the net liability of all reinsurers on the insured's date of death. If the Reinsurer should decline to participate in the contest, compromise or litigation, the Reinsurer will then release all of its liability by paying the Ceding Company its full share of reinsurance and not sharing in any subsequent reduction in liability.

Contested Claims. The Ceding Company will notify the Reinsurer of its intention to contest, compromise, or litigate a claim involving a reinsured policy. If the Ceding Company's contest, compromise, or litigation results in a reduction in its liability, the Reinsurer will share in the reduction in the proportion that the Reinsurer's net liability bears to the sum of the net liability of all reinsurers on the insured's date of death. If the Reinsurer should decline to participate in the contest, compromise or litigation, the Reinsurer will then release all of its liability by paying the Ceding Company its full share of reinsurance death benefits for the policy and not sharing in any subsequent reduction in liability.

Contested Claims. The Ceding Company will notify the Reinsurer of its intention to contest, compromise, or litigate a claim involving a reinsured policy. If the Ceding Company's ’s contest, compromise, or litigation results in a reduction in its liability, the Reinsurer will share in the reduction in the proportion that the Reinsurer's ’s net liability bears to the sum of the net liability of all reinsurers on the insured's ’s date of death. If the Reinsurer should decline to participate in the contest, compromise or litigation, the Reinsurer will then release all of its liability by paying the Ceding Company its full share of reinsurance death benefits for the policy and not sharing in any subsequent reduction in liability.

Contested Claims. The Ceding Company CEDING COMPANY will notify the Reinsurer SECURITY of its intention to contest, compromise, or litigate a claim involving a reinsured policy. If the Ceding CompanyCEDING COMPANY's contest, compromise, or litigation results in a reduction in its liability, the Reinsurer SECURITY will share in the reduction in the proportion that the ReinsurerSECURITY's net liability bears to the sum of the net liability of all reinsurers on the insured's date of death. If the Reinsurer SECURITY should decline to participate in the contest, compromise or litigation, the Reinsurer SECURITY will then release all of its liability by paying the Ceding Company CEDING COMPANY its full share of reinsurance and not sharing in any subsequent reduction in liability.

Contested Claims. The Ceding Company will notify the Reinsurer of its intention to contest, compromise, or litigate a claim involving a reinsured policy. If the Ceding Company's ’s contest, compromise, or litigation results in a reduction in its liability, the Reinsurer will share in the reduction in the proportion that the Reinsurer's ’s net liability bears to the sum of the net liability of all reinsurers on the insured's ’s date of death. If the Reinsurer should decline to participate in the contest, compromise or litigation, the Reinsurer will then release all of its liability by paying the Ceding Company its full share of reinsurance and not sharing in any subsequent reduction in liability.

Contested Claims. The Ceding Company CEDING COMPANY will notify the Reinsurer REINSURER of its intention to contest, compromise, or litigate a claim involving a reinsured policy. If the Ceding CompanyCEDING COMPANY's contest, compromise, or litigation results in a reduction in its liability, the Reinsurer REINSURER will share in the reduction in the proportion that the ReinsurerREINSURER's net liability bears to the sum of the net liability of all reinsurers on the insured's date of death. If the Reinsurer REINSURER should decline to participate in the contest, compromise or litigation, the Reinsurer REINSURER will then release all of its liability by paying the Ceding Company CEDING COMPANY its full share of reinsurance and not sharing in any subsequent reduction in liability.