Fronting Arrangements Clause Samples

Fronting Arrangements. 5.1 For a period of one year from the date of this Agreement, the Seller agrees to act, and to procure that members of the Seller’s Group shall act, as fronting insurers for the Buyer and members of the Buyer’s Group in such jurisdictions as the Buyer may direct from time to time where the Buyer or such member of the Buyer’s Group is not duly authorised in respect of the type of insurance business to which the direction relates provided that the Seller or a member of the Seller’s Group has any necessary authorisation in the relevant jurisdiction (Fronting Arrangements), and the Buyer agrees to pay to the Seller at Completion US$1,500,000 in consideration of the Seller affording the Buyer such right. 5.2 The Seller and the Buyer shall review the Fronting Arrangements as at 1 December 2004. 5.3 Any Fronting Arrangement shall be on the terms of the Fronting and Administration Agreement between Global Aerospace Underwriters Managers Limited, Global Aerospace, Inc., Converium and RSA dated 1 January 2003 with the jurisdictions in Schedule 1 and the “Specified Risks” changed to reflect the business to which the direction relates (subject to the proviso in clause 5.1) and any other consequential or clerical amendments which may be necessary.