Common use of EXTRACONTRACTUAL DAMAGES Clause in Contracts

EXTRACONTRACTUAL DAMAGES. Generally, THE REINSURER will not participate in punitive or compensatory damages, which are awarded against THE COMPANY as a result of an act, omission or course of conduct committed by THE COMPANY in connection with the policies reinsured under this Agreement. THE REINSURER will, however, pay its proportionate share of the statutory penalties awarded against THE COMPANY in connection with claims on the policies reinsured under this Agreement. The parties recognize that circumstances may arise in which equity would require THE REINSURER to share proportionately in certain punitive or compensatory damages. Such circumstances are difficult to define in advance, but generally would be those situations in which THE REINSURER was an active party and either directed, consented to, or ratified the act, omission, or course of conduct of THE COMPANY which ultimately results in the assessment of punitive and/or compensatory damages. In such situations, THE COMPANY and THE REINSURER would share such damages assessed in proportion to each parties’ share of the policy reinsured under this Agreement. For purposes of the provision, the following definitions will apply: “Punitive Damages” are those damages awarded as a penalty, the amounts of which are not governed or fixed by statute; “Statutory Penalties” are those amounts that are awarded as a penalty, but are fixed in amount by statute;

EXTRACONTRACTUAL DAMAGES. Generally, THE REINSURER will not participate in punitive or compensatory damages, which are awarded against THE COMPANY as a result of an act, omission or course of conduct committed by THE COMPANY in connection with the policies reinsured under this Agreement. THE REINSURER will, however, pay its proportionate share of the THE COMPANY’s share of statutory penalties awarded against THE COMPANY in connection with claims on the policies reinsured under this Agreement. The parties recognize that circumstances may arise in which equity would require THE REINSURER REINSURER, to the extent permitted by law, to share proportionately in certain punitive or compensatory assessed damages. Such circumstances are difficult to define in advance, but generally would be those situations in which THE REINSURER was an active party and in writing either directed, consented to, or ratified the act, omission, or course of conduct of THE COMPANY which ultimately results in the assessment of punitive and/or compensatory damages. In such situations, THE COMPANY and THE REINSURER would share such damages assessed in proportion to each parties’ share of the policy reinsured under this Agreementequitable proportions. For purposes of the provision, the following definitions will apply: “Punitive Damages” are those damages awarded as a penalty, the amounts of which are not governed or fixed by statute; “Statutory Penalties” are those amounts that are awarded as a penalty, but are fixed in amount by statute;

EXTRACONTRACTUAL DAMAGES. Generally, THE REINSURER will not participate in punitive or compensatory damages, which are awarded against THE COMPANY as a result of an act, omission or course of conduct committed by THE COMPANY in connection with the policies reinsured under this Agreement. THE REINSURER will, however, pay its proportionate share of the statutory penalties awarded against THE COMPANY in connection with claims on the policies reinsured under this Agreement. The parties recognize that circumstances may arise in which equity would require THE REINSURER to share proportionately in certain punitive or compensatory damages. Such circumstances are difficult to define in advance, but generally would be those situations in which THE REINSURER was an active party and either directed, consented to, or ratified the act, omission, or course of conduct of THE COMPANY which ultimately results in the assessment of punitive and/or compensatory damages. In such situations, THE COMPANY and THE REINSURER would share such damages assessed in proportion to each parties’ share of the policy reinsured under this Agreement. For purposes of the provision, the following definitions will apply: “Punitive Damages” are those damages awarded as a penalty, the amounts of which are not governed or fixed by statute; “Statutory Penalties” are those amounts that are awarded as a penalty, but are fixed in amount by statute;

EXTRACONTRACTUAL DAMAGES. Generally, THE REINSURER In no event will not SECURITY participate in punitive or compensatory damages, damages which are awarded against THE COMPANY FORTIS BENEFITS as a result of an act, omission or course of conduct committed by THE COMPANY FORTIS BENEFITS in connection with the policies reinsured insurance under this Agreement. THE REINSURER SECURITY will, however, pay its proportionate share of the statutory penalties awarded against THE COMPANY FORTIS BENEFITS in connection with claims on the policies insurance reinsured under this Agreement. The parties recognize that circumstances may arise in which equity would require THE REINSURER SECURITY, to the extent permitted by law, to share proportionately in certain punitive or compensatory assessed damages. Such circumstances are difficult to define in advance, but generally would be those situations in which THE REINSURER SECURITY was an active party and either directed, consented to, or ratified the act, omission, or course of conduct of THE COMPANY FORTIS BENEFITS which ultimately results resulted in the assessment of punitive and/or compensatory damages. In such situations, THE COMPANY FORTIS BENEFITS and THE REINSURER SECURITY would share such damages assessed in proportion to each parties’ share equitable proportions. Routine expenses incurred in the normal settlement of uncontested claims and the policy reinsured under salary of an officer or employee of FORTIS BENEFITS are excluded from this Agreementprovision. For purposes of the provision, the following definitions will apply: “Punitive Damages” are those damages awarded as a penaltypenalties, the amounts of which are not governed or nor fixed by statute; “Statutory Penalties” are those amounts that are awarded as a penalty, but are fixed in amount by statute;

EXTRACONTRACTUAL DAMAGES. Generally, THE REINSURER In no event will not SECURITY participate in punitive or compensatory damages, damages which are awarded against THE COMPANY FORTIS BENEFITS as a result of an act, omission or course of conduct committed by THE COMPANY FORTIS BENEFITS in connection with the policies reinsured insurance under this Agreement. THE REINSURER SECURITY will, however, pay its proportionate share of the statutory penalties awarded against THE COMPANY FORTIS BENEFITS in connection with claims on the policies insurance reinsured under this Agreement. The parties recognize that circumstances may arise in which equity would require THE REINSURER SECURITY, to the extent permitted by law, to share proportionately in certain punitive or compensatory assessed damages. Such circumstances are difficult to define in advance, but generally would be those situations in which THE REINSURER SECURITY was an active party and either directed, consented to, or ratified the act, omission, or course of conduct of THE COMPANY FORTIS BENEFITS which ultimately results resulted in the assessment of punitive and/or compensatory damages. In such situations, THE COMPANY FORTIS BENEFITS and THE REINSURER SECURITY would share such damages assessed in proportion to each parties’ share equitable proportions. Routine expenses incurred in the normal settlement of uncontested claims and the policy reinsured under salary of an officer or employee of FORTIS BENEFITS are excluded from this Agreementprovision. For purposes of the this provision, the following definitions will apply: “Punitive Damages” are those damages awarded as a penaltypenalties, the amounts of which are not governed or nor fixed by statute; “Statutory Penalties” are those amounts that are awarded as a penalty, but are fixed in amount by statute;

EXTRACONTRACTUAL DAMAGES. Generally, THE REINSURER will not participate in punitive or compensatory damages, which are awarded against THE COMPANY as a result of an act, omission or course of conduct committed by THE COMPANY or its agents in connection with the policies reinsured under this Agreement. THE REINSURER will, however, pay its proportionate share of the statutory penalties awarded against THE COMPANY in connection with claims on the policies reinsured under this Agreement. The parties recognize that circumstances may arise in which equity would require THE REINSURER REINSURER, to the extent permitted by law, to share proportionately in certain assessed punitive or compensatory damages. Such circumstances are difficult to define in advance, but generally would be those situations in which THE REINSURER was an active party and in writing either directed, consented to, or ratified the act, omission, or course of conduct of THE COMPANY which ultimately results in the assessment of punitive and/or compensatory damages. In such situations, THE COMPANY and THE REINSURER would share such damages assessed in proportion to each parties’ share of the policy reinsured under this Agreementequitable proportions. For purposes of the provision, the following definitions will apply: “"Punitive Damages” " are those damages awarded as a penalty, the amounts of which are not governed or fixed by statute; “"Statutory Penalties” " are those amounts that are awarded as a penalty, but are fixed in amount by statute;