Common use of Loss Payable Clause in Contracts

Loss Payable. The Reinsurer shall indemnify the Company for all losses paid in accordance with the terms, conditions and limits of this Certificate and the terms, conditions and limits of the policy reinsured hereunder. The Reinsurer shall pay to the Company its proportion of such losses promptly following receipt of satisfactory proof of loss in the following manner: (1) If this reinsurance is on an excess of loss basis, the amount of the Reinsurer's liability for loss hereunder shall be its indicated proportion of the excess amount, if any, by which ultimate loss to the policy reinsured hereunder exceeds the amount or amounts in excess of which this reinsurance attaches, after first having deducted all recoveries from any source except those from such portions of other excess of loss reinsurance which do not overlap or duplicate this coverage. (2) If this reinsurance is on a pro rata basis, the amount of the Reinsurer's liability for each loss shall be in the proportion that the sum reinsured hereunder bears to the total sum insured by the reinsured policy at the time this Certificate becomes effective or at the time of loss, whichever proportion is less (unless otherwise endorsed hereto). In addition, the Reinsurer shall pay its proportion of expenses which are within the terms of the policy reinsured hereunder (other than Company salaries, travel and office expenses) and incurred by the Company in the investigation and settlement of claims or suits as well as its proportion of court costs and interest on that part of any judgment or settlement award fixing the amount of the Company's insurance liability under the reinsured policy as follows: (i) With respect to reinsurance provided on an excess of loss basis, in the ratio that the Reinsurer's loss payment bears to the Company's gross loss payment under the policy reinsured. In the event there is no loss payment by the Reinsurer, there shall be no expense, court cost or interest payment. (ii) With respect to reinsurance provided on a pro rata basis, in the ratio that the Reinsurer's limit of liability bears to the Company's gross limit of liability under the policy reinsured.

Loss Payable. The Reinsurer shall indemnify the Company for all losses paid in accordance with the terms, conditions and limits of this Certificate and the terms, conditions and limits of the policy reinsured hereunder. The Reinsurer shall pay to the Company its proportion of such losses promptly following receipt of satisfactory proof of loss in the following manner: (1) If this reinsurance is on an excess of loss basis, the amount of the Reinsurer's liability for loss hereunder shall be its indicated proportion of the excess amount, if any, by which ultimate loss to the policy reinsured hereunder exceeds the amount or amounts in excess of which this reinsurance attaches, after first having deducted all recoveries from any source except those from such portions of other excess of loss reinsurance which do not overlap or duplicate this coverage. (2) If this reinsurance is on a pro rata basis, the amount of the Reinsurer's liability for each loss shall be in the proportion that the sum reinsured hereunder bears to the total sum insured by the reinsured policy at the time this Certificate becomes effective or at the time of loss, whichever proportion is less (unless otherwise endorsed hereto). In addition, the Reinsurer shall pay its proportion of expenses which are within the terms of the policy reinsured hereunder (other than Company salaries, travel and office expenses) and incurred by the Company in the investigation and settlement of claims or suits as well as its proportion of court costs and interest on that part of any judgment or settlement award fixing the amount of the Company's insurance liability under the reinsured policy as follows:. (i) With respect to reinsurance provided on an excess of loss basis, in the ratio that the Reinsurer's loss payment bears to the Company's gross loss payment under the policy reinsured. In the event there is no loss payment by the Reinsurer, there shall be no expense, court cost or interest payment. (ii) With respect to reinsurance provided on a pro rata basis, in the ratio that the Reinsurer's limit of liability bears to the Company's gross limit of liability under the policy reinsured.