Common use of EXTRACONTRACTUAL OBLIGATIONS Clause in Contracts

EXTRACONTRACTUAL OBLIGATIONS. In the event Retrocedant or Retrocessionaire is held liable to pay any punitive, exemplary, compensatory or consequential damages because of alleged or actual bad faith or negligence related to the handling of any claim under the Reinsurance Contract or otherwise in respect of the Reinsurance Contract, the parties shall be liable for such damages in proportion to their responsibility for the conduct giving rise to the damages. Such determination shall be made by Retrocedant and Retrocessionaire, acting jointly and in good faith, and in the event the parties are unable to reach agreement as to such determination, recourse shall be had to Article XV hereof.

EXTRACONTRACTUAL OBLIGATIONS. In the event Retrocedant or Retrocessionaire is held liable to pay any punitive, exemplary, compensatory or consequential damages because of alleged or actual bad faith or negligence related to the handling of any claim under the Reinsurance Contract or otherwise in respect of the Reinsurance Contract, the parties shall be liable for such damages in proportion to their responsibility for the conduct giving rise to the damages. Such determination shall be made by Retrocedant and Retrocessionaire, acting jointly and 12 in good faith, and in the event the parties are unable to reach agreement as to such determination, recourse shall be had to Article XV hereof.