Common use of Necessity Determination Clause in Contracts

Necessity Determination. In the event the parties disagree as ----------------------- to the necessity for and/or type of state license(s) required to be obtained by NMS under state insurance laws or regulations, the parties may agree to jointly contact the relevant state insurance department(s) to obtain a written opinion from such state insurance department(s) as to whether NMS is required to obtain such licenses in order to fulfill its obligations hereunder. The parties agree to abide by the terms and conditions of any such written opinion. In the event the parties disagree as to the necessity for and/or type of state insurance license(s) required to be obtained by NMS under state insurance laws or regulations, and the parties choose not to contact the relevant state insurance department(s) for a written opinion as to the necessity for licensure or any state department of insurance refuses to provide such opinion, NMS shall indemnify THE ASSOCIATION and/or any of the Participating Plans, in accordance with the indemnification provisions set forth in Section 7.2 above herein, for any fines, penalties or other monetary damages or judgments levied against THE ASSOCIATION and/or any of the Plans by any state insurance department arising out of and as a result of NMS's failure to have obtained such Applicable License. In such an event NMS shall immediately commence the appropriate license process under state insurance laws and regulations.