Common use of Potential Assumption Clause in Contracts

Potential Assumption. The Reinsurer and the Ceding Company have, contemporaneously with this Agreement, entered into an Assumption Reinsurance Agreement (the “Assumption Agreement”) in respect of certain Policies. All assumptions thereunder shall be subject to receipt of all applicable consents and approvals from regulatory authorities and other applicable parties and satisfaction of all applicable notice and other regulatory requirements imposed under applicable laws in accordance with the Assumption Agreement. Any Policies so assumed are referred to herein as “Assumed Policies,” and shall, effective with their assumption under the Assumption Agreement, cease to be subject to this Agreement except as otherwise provided for herein. The Ceding Company shall use commercially reasonable efforts to add the Reinsurer as a reinsured party under the Third Party Reinsurance Agreements that include Assumed Policies, or assign its rights with respect to Assumed Policies under those agreements to Reinsurer, so as to continue coverage under the Third Party Reinsurance Agreements for the Assumed Policies.