Common use of Contested, Litigated or Compromised Claims Clause in Contracts

Contested, Litigated or Compromised Claims. The Company shall promptly notify Reinsurer of its intention to contest, compromise or litigate any claim on a Reinsured Plan or its intention to investigate or defend any litigation initiated against the Company in response to the Company's denial of a claim on a Reinsured Plan. With or immediately following such notice, the Company shall furnish Reinsurer with copies of written materials relating to such claim. Reinsurer shall promptly notify Company of its decision whether or not to accept any such action. If Reinsurer declines to accept any such action, it will pay the full Amount Reinsured, as if there had been no such contest, compromise or litigation, and will be fully discharged as of the date of such payment from any further liability on that claim under Paragraph 4 of this Article. If the Reinsurer accepts such action, then: (i) Reinsurer shall continue to share in the covered claim expenses as described in Paragraph 4; (ii) the Company shall keep the Reinsurer informed of the status of any legal proceeding or settlement negotiations in connection with such claim; and (iii) if the contest or compromise reduces the amount of the Company's liability, the Reinsurer's liability shall be reduced to its Claims Ratio of the reduced amount.

Contested, Litigated or Compromised Claims. The Company Reinsured shall promptly notify Reinsurer of its intention to contest, compromise or litigate any claim on a Reinsured Plan or its intention to investigate or defend any litigation initiated against the Company Reinsured in response to the CompanyReinsured's denial of a claim on a Reinsured Plan. With or immediately following such notice, the Company Reinsured shall furnish Reinsurer with copies of written materials relating to such claim. Reinsurer shall promptly notify Company Reinsured of its decision whether or not to accept any such action. If Reinsurer declines to accept any such action, it will pay the full Amount Reinsured, as if there had been no such contest, compromise or litigation, and will be fully discharged as of the date of such payment from any further liability on that claim under Paragraph 4 of this Article. If the Reinsurer accepts such action, then: (i) Reinsurer shall continue to share in the covered claim expenses as described in Paragraph 4; (ii) the Company Reinsured shall keep the Reinsurer informed of the status of any legal proceeding or settlement negotiations in connection with such claim; and (iii) if the contest or compromise reduces the amount of the CompanyReinsured's liability, the Reinsurer's liability shall be reduced to its Claims Ratio quota share percentage of the reduced amount.

Contested, Litigated or Compromised Claims. The Company Reinsured shall promptly notify Reinsurer of its intention to contest, compromise or litigate any claim on a Reinsured Plan or its intention to investigate or defend any litigation initiated against the Company Reinsured in response to the CompanyReinsured's denial of a claim on a Reinsured Plan. With or immediately following such notice, the Company Reinsured shall furnish Reinsurer with copies of written materials relating to such claim. Reinsurer shall promptly notify Company Reinsured of its decision whether or not to accept any such action. If Reinsurer declines to accept any such action, it will pay the full Amount Reinsured, as if there had been no such contest, compromise or litigation, and will be fully discharged as of the date of such payment from any further liability on that claim under Paragraph 4 5 of this Article. If the Reinsurer accepts such action, then: (i) Reinsurer shall continue to share in the covered claim expenses as described in Paragraph 45; (ii) the Company Reinsured shall keep the Reinsurer informed of the status of any legal proceeding or settlement negotiations in connection with such claim; and (iii) if the contest or compromise reduces the amount of the CompanyReinsured's liability, the Reinsurer's liability shall be reduced to its Claims Ratio quota share percentage of the reduced amount.