Common use of Loss in Excess of Policy Limits/Extra Contractual Obligations Clause in Contracts

Loss in Excess of Policy Limits/Extra Contractual Obligations. A. In the event the Company pays or is held liable to pay an amount of loss in excess of its policy limit, but otherwise within the terms of its policy (hereinafter called “loss in excess of policy limits”) or any punitive, exemplary, compensatory or consequential damages, other than loss in excess of policy limits (hereinafter called “extra contractual obligations”) because of alleged or actual bad faith, negligence or fraud on its part in rejecting an offer of settlement within policy limits, or in the preparation of the defense or in the trial of an action against its insured or reinsured or in the preparation or prosecution of an appeal consequent upon such an action, or in otherwise handling a claim under a policy subject to this Contract, 100% of the loss in excess of policy limits and/or 100% of the extra contractual obligations shall be added to the Company’s loss, if any, under the policy involved, and the sum thereof shall be subject to the provisions of Article V, not exceeding, however, $1,000,000 per occurrence or $3,000,000 in the aggregate as respects the first and second underwriting years collectively and as respects each subsequent underwriting year.

Loss in Excess of Policy Limits/Extra Contractual Obligations. A. 16.01 In the event the Company pays or is held liable to pay an amount of loss in excess of its policy limit, but otherwise within the terms of its policy (hereinafter called “"loss in excess of policy limits”") or any punitive, exemplary, compensatory or consequential damages, other than loss in excess of policy limits (hereinafter called “"extra contractual obligations”") because of alleged or actual bad faith, faith or negligence or fraud on its part in rejecting an offer of a settlement within policy limits, or in the preparation of discharging its duty to defend or prepare the defense or in the trial of an action against its insured or reinsured policyholder, or in the preparation discharging its duty to prepare or prosecution of prosecute an appeal consequent upon such an action, or in otherwise handling a claim under a policy subject to this ContractAgreement, 100% of the loss in excess of policy limits and/or 100% of the extra contractual obligations shall be added to the Company’s 's loss, if any, under the policy Policy involved, and the sum thereof shall be subject to the provisions of Article V, not exceeding, however, $1,000,000 per occurrence or $3,000,000 in the aggregate as respects the first and second underwriting years collectively and as respects each subsequent underwriting yearreinsured 100% under this Agreement.

Loss in Excess of Policy Limits/Extra Contractual Obligations. A. In the event the Company pays or is held liable to pay an amount of loss in excess of its policy limit, but otherwise within the terms of its policy (hereinafter called “loss in excess of policy limits”) or any punitive, exemplary, compensatory or consequential damages, other than loss in excess of policy limits (hereinafter called “extra contractual obligations”) because of alleged or actual bad faith, negligence or fraud on its part in rejecting an offer of settlement within policy limits, or in the preparation of the defense or in the trial of an action against its insured or reinsured or in the preparation or prosecution of an appeal consequent upon such an action, or in otherwise handling a claim under a policy subject to this Contract, 100% of the loss in excess of policy limits and/or 100% of the extra contractual obligations shall be added to the Company’s loss, if any, under the policy involved, and the sum thereof shall be subject to the provisions of Article V, (not exceeding, however, $1,000,000 per occurrence each claim or $3,000,000 in the aggregate as respects the first and second underwriting years collectively and as respects each subsequent underwriting year) shall be subject to the provisions of the Retention and Limit Article. For the purposes of this Article, all claims associated with a certified class action shall be deemed to constitute one claim. In no event shall coverage be provided for loss adjustment expense associated with loss in excess of policy limits and/or extra contractual obligations.

Loss in Excess of Policy Limits/Extra Contractual Obligations. A. In the event the Company pays or is held liable to pay an amount of loss in excess of its policy Policy limit, but otherwise within the terms of its policy Policy (hereinafter called “loss Loss in excess Excess of policy limitsPolicy Limits”) or any punitive, exemplary, compensatory or consequential damages, other than loss Loss in excess Excess of policy limits Policy Limits (hereinafter called “extra contractual obligationsExtra Contractual Obligations”) because of alleged or actual bad faith, negligence or fraud on its part in rejecting an offer of settlement within policy Policy limits, or in the preparation of the defense or in the trial of an action against its insured or reinsured or in the preparation or prosecution of an appeal consequent upon such an action, or in otherwise handling a claim under a policy Policy subject to this Contract, 100% the Loss in Excess of Policy Limits and/or the loss in excess of policy limits and/or 100% of the extra contractual obligations Extra Contractual Obligations shall be added to the Company’s loss, if any, under the policy Policy involved, and the sum thereof shall be subject to the provisions of Article V, not exceeding, however, $1,000,000 per occurrence or $3,000,000 in the aggregate as respects the first Retention and second underwriting years collectively and as respects each subsequent underwriting yearLimit Article.