Common use of Loss Reserves Clause in Contracts

Loss Reserves. This Article applies only to those Reinsurers signatory hereto who do not qualify for credit under the regulations of the State insurance authorities or departments which have jurisdiction over the Company’s loss reserves. The Company agrees that when, for its Annual Convention Statement purposes, it files with the authorities or departments mentioned above or sets up in its books statutory reserves for known outstanding loss and allocated loss expenses reinsured by this Agreement it shall forward to Reinsurers a clear statement of Reinsurers’ proportion of such reserves detailing all the amounts involved and how those amounts are calculated. Reinsurers, promptly upon receipt of the Company’s statement, shall apply for and secure delivery to the Company of a clean, irrevocable and unconditional Letter of Credit, in an amount equal to their proportion of the stated reserves. Under no circumstances shall any amount relating to Incurred But Not Reported (IBNR) losses be included in the amount of the Letter of Credit in respect of losses or loss expenses. All Letters of Credit procured pursuant to this Agreement shall be issued by a Bank which is a Member of the Federal Reserve and shall be in full conformity with the requirements of the authorities or departments mentioned in the first paragraph of this Article current at the date of the Company’s statement. Further, they shall be “Evergreen” in that they shall be issued for an initial period of not less than one year and shall be automatically extended for one year from their original expiration dates and subsequently from their extended expiration dates unless and until, at least thirty days before any expiration date, the issuing bank gives notice to the Company by registered mail that the issuing bank elects not to extend the life of the Letter of Credit in question beyond its forthcoming expiration date. In consideration of the agreement of Reinsurers to furnish such Letters of Credit to the Company to enable it to obtain credit for the reinsurance provided under this Agreement, the Company hereby undertakes to hold such Letters of Credit and the proceeds of any drawings made upon them in trust for Reinsurers and to use and apply the proceeds of any such drawings for the following purposes only:-

Loss Reserves. This Article applies only to those Reinsurers signatory hereto who do not qualify for credit under the regulations of the State insurance authorities or departments which have jurisdiction over the Company’s Reassured's loss reserves. The Company agrees Reassured agree that when, for its Annual Convention Statement purposes, it files with the authorities or departments mentioned above or sets up in its books statutory reserves for known outstanding loss losses and allocated loss expenses reinsured by this Agreement Contract it shall forward to the Reinsurers a clear statement of the Reinsurers’ ' proportion of such those reserves detailing all the amounts involved for known outstanding losses and allocated loss expenses and also how those amounts are calculated. The Reinsurers, promptly upon receipt of the Company’s Reassured's statement, shall apply for and secure delivery to the Company Reassured of a clean, irrevocable and unconditional Letter Letters of Credit, in an amount amounts equal to their proportion of the stated reserves. Under no circumstances shall any amount relating to reserves in respect of losses or loss expenses Incurred But Not Reported (IBNR) losses be included in the amount of the Letter of Credit in respect of losses or loss expensesCredit. All Letters of Credit procured pursuant to this Agreement Contract shall be issued by a Bank which is a Member of the Federal Reserve and shall be in full conformity with the requirements of the authorities or departments mentioned in the first paragraph of this Article current at the date of the Company’s Reassured's statement. Further, they shall be “Evergreen” "Evergreenn in that they shall be issued for an initial period of not less than one year and shall be automatically extended for one year from their original expiration dates and subsequently from their extended expiration dates unless and until, at least thirty days before any expiration date, the issuing bank gives notice to the Company Reassured by registered mail that the issuing bank elects not to extend the life of the Letter of Credit in question beyond its forthcoming expiration date. In consideration of the agreement of the Reinsurers to furnish such Letters of Credit to the Company Reassured to enable it to obtain credit for the reinsurance provided under this AgreementContract, the Company Reassured hereby undertakes to hold such Letters of Credit and the proceeds of any drawings made upon them in trust for the Reinsurers and to use and apply the proceeds procesds of any such drawings for the following purposes only:-only:

Loss Reserves. This Article applies only to those Reinsurers Reinsurers, signatory hereto hereto, who do not qualify for credit under the regulations of the State state insurance authorities or departments which have jurisdiction over the Company’s loss reserves. The Company agrees that when, for its Annual Convention Statement purposes, it files with the authorities or departments mentioned above or sets up in its books statutory reserves for known outstanding loss and allocated loss expenses reinsured by this Agreement reserves, it shall forward to Reinsurers a clear statement of Reinsurers’ proportion of such reserves detailing all the amounts involved involved. Such reserves shall consist of Reinsurance Recoverable (Case and how those amounts are calculatedBulk Reserves), as set forth on Schedule F of the Annual Statement. Reinsurers, promptly upon receipt of the Company’s statement, shall apply for and secure delivery to the Company of a clean, irrevocable and unconditional Letter of Credit, in an amount equal to their proportion of the stated reserves. Under no circumstances shall any amount relating to Incurred But Not Reported (IBNR) losses be included in the amount of the Letter of Credit in respect of losses or loss expenses. All Letters of Credit procured pursuant to this Agreement shall be issued by a Bank bank which is a Member member of the Federal Reserve and shall be in full conformity with the requirements of the authorities or departments mentioned in the first paragraph of this Article current at the date of the Company’s statement. Further, they shall be “Evergreen” in that they shall be issued for an initial period of not less than one year and shall be automatically extended for one year from their original expiration dates and subsequently from their extended expiration dates unless and until, at least thirty days before any expiration date, the issuing bank gives notice to the Company by registered mail that the issuing bank elects not to extend the life of the Letter of Credit in question beyond its forthcoming expiration date. In consideration of the agreement of Reinsurers to furnish such Letters of Credit to the Company to enable it to obtain credit for the reinsurance provided under this Agreement, the Company hereby undertakes to hold such Letters of Credit and the proceeds of any drawings made upon them in trust for Reinsurers and to use and apply the proceeds of any such drawings for the following purposes only:-

Loss Reserves. This Article applies only to those Reinsurers signatory hereto who do not qualify for credit under the regulations of the State insurance authorities or departments which have jurisdiction over the Company’s Reassured's loss reserves. The Company Reassured agrees that when, for its Annual Convention Statement purposes, it files with the authorities or departments mentioned above or sets up in its books statutory reserves for known outstanding loss losses and allocated loss expenses reinsured by this Agreement Contract it shall forward to the Reinsurers a clear statement of the Reinsurers’ ' proportion of such those reserves detailing all the amounts involved for known outstanding losses and allocated loss expenses and also how those amounts are calculated. The Reinsurers, promptly upon receipt of the Company’s Reassured's statement, shall apply for and secure delivery to the Company Reassured of a clean, irrevocable and unconditional Letter of Credit, in an amount equal to their proportion of the stated reserves. Under no circumstances shall any amount relating to reserves in respect of losses or loss expenses Incurred But Not Reported (IBNR) losses be included in the amount of the Letter of Credit in respect of losses or loss expensesCredit. All Letters of Credit procured pursuant to this Agreement Contract shall be issued by a Bank which is a Member of the Federal Reserve and shall be in full conformity with the requirements of the authorities or departments mentioned in the first paragraph of this Article current at the date of the Company’s Reassured's statement. Further, they shall be “"Evergreen” " in that they shall be issued for an initial period of not less than one year and shall be automatically extended for one year from their original expiration dates and subsequently from their extended expiration dates unless and until, at least thirty days before any expiration date, the issuing bank gives notice to the Company Reassured by registered mail that the issuing bank elects not to extend the life Life of the Letter of Credit in question beyond its forthcoming expiration date. In consideration of the agreement of the Reinsurers to furnish such Letters of Credit to the Company Reassured to enable it to obtain credit for the reinsurance provided under this AgreementContract, the Company Reassured hereby undertakes to hold such Letters of Credit and the proceeds of any drawings made upon them in trust for the Reinsurers and to use and apply the proceeds of any such drawings for the following purposes only:-only:

Loss Reserves. This Article applies only to those Reinsurers signatory hereto who do not qualify for credit under the regulations of the State insurance authorities or departments which have jurisdiction over the Company’s loss reserves. The Company agrees that when, for its Annual Convention Statement purposes, it files with the authorities or departments mentioned above or sets up in its books statutory reserves for known outstanding loss and allocated loss expenses reinsured by this Agreement it shall forward to Reinsurers a clear statement of Reinsurers’ proportion of such reserves detailing all the amounts involved and how those amounts are calculated. Reinsurers, promptly upon receipt of the Company’s statement, shall apply for and secure delivery to the Company of a clean, irrevocable and unconditional Letter of Credit, in an amount equal to their proportion of the stated reserves. Under no circumstances shall any amount relating to Incurred But Not Reported (IBNR) losses be included in the amount of the Letter of Credit in respect of losses or loss expenses. All Letters of Credit procured pursuant to this Agreement shall be issued by a Bank which is a Member of the Federal Reserve and shall be in full foil conformity with the requirements of the authorities or departments mentioned in the first paragraph of this Article current at the date of the Company’s statement. Further, they shall be “Evergreen” in that they shall be issued for an initial period of not less than one year and shall be automatically extended for one year from their original expiration dates and subsequently from their extended expiration dates unless and until, at least thirty days before any expiration date, the issuing bank gives notice to the Company by registered mail that the issuing bank elects not to extend the life of the Letter of Credit in question beyond its forthcoming expiration date. In consideration of the agreement of Reinsurers to furnish such Letters of Credit to the Company to enable it to obtain credit for the reinsurance provided under this Agreement, the Company hereby undertakes to hold such Letters of Credit and the proceeds of any drawings made upon them in trust for Reinsurers and to use and apply the proceeds of any such drawings for the following purposes only:-

Loss Reserves. This Article applies only to those Reinsurers signatory hereto who do not qualify for credit under the regulations of the State insurance authorities or departments which have jurisdiction over the Company’s Reassured's loss reserves. The Company Reassured agrees that when, for its Annual Convention Statement purposes, it files with the authorities or departments mentioned above or sets up in its books bocks statutory reserves for known outstanding loss losses and allocated loss expenses reinsured by this Agreement Contract it shall forward to the Reinsurers a clear statement of the Reinsurers’ ' proportion of such those reserves detailing all the amounts involved for known outstanding losses and allocated loss expenses and also how those amounts are calculated. The Reinsurers, promptly upon receipt of the Company’s Reassured's statement, shall apply for and secure delivery to the Company Reassured of a clean, irrevocable and unconditional Letter of Credit, in an amount equal to their proportion of the stated reserves. Under no circumstances shall any amount relating to reserves in respect of losses or loss expenses Incurred But Not Reported (IBNR) losses be included in the amount of the Letter of Credit in respect of losses or loss expensesCredit. All Letters of Credit procured pursuant to this Agreement Contract shall be issued by a Bank which is a Member of the Federal Reserve and shall be in full fall conformity with the requirements of the authorities or departments mentioned in the first paragraph of this Article current at the date of the Company’s Reassured's statement. Further, they shall be “"Evergreen” " in that they shall be issued for an initial period of not less than one year and shall be automatically extended for one year from their original expiration dates and subsequently from their extended expiration dates unless and until, at least thirty days before any expiration date, the issuing bank gives notice to the Company Reassured by registered mail that the issuing bank elects not to extend the life of the Letter of Credit in question beyond its forthcoming expiration date. In consideration of the agreement of the Reinsurers to furnish such Letters of Credit to the Company Reassured to enable it to obtain credit for the reinsurance provided under this AgreementContract, the Company Reassured hereby undertakes to hold such Letters of Credit and the proceeds of any drawings made upon them in trust for the Reinsurers and to use and apply the proceeds of any such drawings for the following purposes only:-only:

Loss Reserves. This Article applies only The LOSS RESERVES reflected in the ---------------------------- INSURER CONVENTION STATEMENTS, in any subsequent QUARTERLY CONVENTION STATEMENTS provided to the PURCHASER after the date hereof and prior to the CLOSING DATE, and the LOSS RESERVES reflected in the CLOSING BALANCE SHEET were or will be determined in accordance with generally accepted actuarial standards and principles applied on a basis consistent with those Reinsurers signatory hereto who do not qualify applied in determining the LOSS RESERVES reflected in the SELLER FINANCIAL STATEMENTS, it being understood and agreed that the LOSS RESERVES reflected in the INSURER CONVENTION STATEMENTS and any QUARTERLY CONVENTION STATEMENTS are or will be net of reinsurance recoverables, and the LOSS RESERVES reflected in the SELLER FINANCIAL STATEMENTS are or will be gross. The LOSS RESERVES set forth in the CLOSING BALANCE SHEET, net of reinsurance recoverables (other than intercompany reinsurance) (the "CLOSING LOSS RESERVES") make or will make good and sufficient provision for credit under the regulations settlement of the State total amount of all liabilities and obligations incurred by the INSURERS through the CLOSING DATE under all insurance authorities and reinsurance contracts pursuant to which the INSURERS have any liability or departments which have jurisdiction over the Company’s loss reservesobligation. The Company agrees that whendetermination of whether, and the extent to which, the CLOSING LOSS RESERVES make good and sufficient provision for its Annual Convention Statement purposes, it files with the authorities or departments mentioned above or sets up in its books statutory reserves for known outstanding loss settlement of all such liabilities and allocated loss expenses reinsured by this Agreement it shall forward to Reinsurers a clear statement of Reinsurers’ proportion of such reserves detailing all the amounts involved and how those amounts are calculated. Reinsurers, promptly upon receipt of the Company’s statement, shall apply for and secure delivery to the Company of a clean, irrevocable and unconditional Letter of Credit, in an amount equal to their proportion of the stated reserves. Under no circumstances shall any amount relating to Incurred But Not Reported (IBNR) losses be included in the amount of the Letter of Credit in respect of losses or loss expenses. All Letters of Credit procured pursuant to this Agreement obligation shall be issued by a Bank which is a Member of the Federal Reserve and shall be made in full conformity accordance with the requirements of the authorities or departments mentioned in the first paragraph Section 10.05 of this Article current at the date of the Company’s statement. Further, they shall be “Evergreen” in that they shall be issued for an initial period of not less than one year and shall be automatically extended for one year from their original expiration dates and subsequently from their extended expiration dates unless and until, at least thirty days before any expiration date, the issuing bank gives notice to the Company by registered mail that the issuing bank elects not to extend the life of the Letter of Credit in question beyond its forthcoming expiration date. In consideration of the agreement of Reinsurers to furnish such Letters of Credit to the Company to enable it to obtain credit for the reinsurance provided under this Agreement, the Company hereby undertakes to hold such Letters of Credit and the proceeds of any drawings made upon them in trust for Reinsurers and to use and apply the proceeds of any such drawings for the following purposes only:-AGREEMENT.

Loss Reserves. This Article applies only The LOSS RESERVES reflected in the --------------------------------------------------- INSURER CONVENTION STATEMENTS, in any subsequent QUARTERLY CONVENTION STATEMENTS provided to the PURCHASER after the date hereof and prior to the CLOSING DATE, and the LOSS RESERVES reflected in the CLOSING BALANCE SHEET were or will be determined in accordance with generally accepted actuarial standards and principles applied on a basis consistent with those Reinsurers signatory hereto who do not qualify applied in determining the LOSS RESERVES reflected in the SELLER FINANCIAL STATEMENTS, it being understood and agreed that the LOSS RESERVES reflected in the INSURER CONVENTION STATEMENTS and any QUARTERLY CONVENTION STATEMENTS are or will be net of reinsurance recoverables, and the LOSS RESERVES reflected in the SELLER FINANCIAL STATEMENTS are or will be gross. The LOSS RESERVES set forth in the CLOSING BALANCE SHEET, net of reinsurance recoverables (other than intercompany reinsurance) (the "CLOSING LOSS RESERVES") make or will make good and sufficient provision for credit under the regulations settlement of the State total amount of all liabilities and obligations incurred by the INSURERS through the CLOSING DATE under all insurance authorities and reinsurance contracts pursuant to which the INSURERS have any liability or departments which have jurisdiction over the Company’s loss reservesobligation. The Company agrees that whendetermination of whether, and the extent to which, the CLOSING LOSS RESERVES make good and sufficient provision for its Annual Convention Statement purposes, it files with the authorities or departments mentioned above or sets up in its books statutory reserves for known outstanding loss settlement of all such liabilities and allocated loss expenses reinsured by this Agreement it shall forward to Reinsurers a clear statement of Reinsurers’ proportion of such reserves detailing all the amounts involved and how those amounts are calculated. Reinsurers, promptly upon receipt of the Company’s statement, shall apply for and secure delivery to the Company of a clean, irrevocable and unconditional Letter of Credit, in an amount equal to their proportion of the stated reserves. Under no circumstances shall any amount relating to Incurred But Not Reported (IBNR) losses be included in the amount of the Letter of Credit in respect of losses or loss expenses. All Letters of Credit procured pursuant to this Agreement obligation shall be issued by a Bank which is a Member of the Federal Reserve and shall be made in full conformity accordance with the requirements of the authorities or departments mentioned in the first paragraph Section 10.05 of this Article current at the date of the Company’s statement. Further, they shall be “Evergreen” in that they shall be issued for an initial period of not less than one year and shall be automatically extended for one year from their original expiration dates and subsequently from their extended expiration dates unless and until, at least thirty days before any expiration date, the issuing bank gives notice to the Company by registered mail that the issuing bank elects not to extend the life of the Letter of Credit in question beyond its forthcoming expiration date. In consideration of the agreement of Reinsurers to furnish such Letters of Credit to the Company to enable it to obtain credit for the reinsurance provided under this Agreement, the Company hereby undertakes to hold such Letters of Credit and the proceeds of any drawings made upon them in trust for Reinsurers and to use and apply the proceeds of any such drawings for the following purposes only:-AGREEMENT.