Common use of Performance Guarantees Clause in Contracts

Performance Guarantees. ‌ Insurer’s performance under this Contract is subject to the performance guarantees, including reporting requirements, and associated Financial Consequences established in Attachment C. The inclusion of performance guarantees and the related Financial Consequences in this Contract is intended to address unsatisfactory performance in the context of ongoing operations without resort to the Event of Default remedies set forth in section 44.10. If Insurer's performance falls below the minimum level of performance for the same performance guarantee set forth in this Contract for three (3) consecutive measurement periods or fails to meet a total of five (5) or more performance standards in six (6) out of twelve (12) months (regardless of standard), and such failure is not otherwise excused, then FHKC may follow the process outlined in section 44.6 in lieu of accepting any Financial Consequences.