Common use of Reinsurance Credit Clause in Contracts

Reinsurance Credit. The parties intend that the Ceding Company be able to obtain full statutory financial statement credit for the reinsurance provided by this Agreement in the Ceding Company Domiciliary State throughout the entire term of this Agreement. The Reinsurer shall promptly notify the Ceding Company in writing of any event with respect to the Reinsurer that, if continuing as of the end of any financial statement period, would be reasonably likely to result in the Ceding Company being unable to take full statutory financial statement credit in the Ceding Company Domiciliary State for the reinsurance provided by this Agreement. The Ceding Company shall promptly notify the Reinsurer in writing of the occurrence of any other event or circumstance that has caused or will cause the Ceding Company to no longer receive such credit for reinsurance in the Ceding Company Domiciliary State, which notice shall describe in reasonable detail the event or development requiring such notice. Upon the occurrence of any event that, if continuing as of the end of any financial statement period, would result in the Ceding Company being unable to take full statutory financial statement credit for the reinsurance provided by this Agreement in the Ceding Company Domiciliary State (a “Reinsurance Credit Event”), the Reinsurer, at its own expense, shall, within (i) forty-five (45) calendar days following the occurrence of such Reinsurance Credit Event or (ii) if earlier, the end of the calendar quarter during which such Reinsurance Credit Event occurred, take all steps necessary to comply with all Applicable Laws so as to permit the Ceding Company to obtain full credit for the reinsurance provided by this Agreement in the Ceding Company Domiciliary State throughout the entire term of this Agreement to the extent credit is not otherwise available under Applicable Law, including the postings of letters of credit, converting the Trust Account into a credit for reinsurance trust or providing other acceptable security in accordance with the terms hereof, it being understood that the Reinsurer shall have the sole discretion to elect among the methods available to it in order to maintain such credit for reinsurance in compliance with this Section 4.01. Furthermore, if, following a Reinsurance Credit Event, the Reinsurer chooses to convert the Trust Account into a credit for reinsurance trust, the Reinsurer and the Ceding Company agree to reasonably cooperate to amend this Agreement or the Trust Agreement, or enter into other agreements or execute additional documents, in each case, as needed to comply with the credit for reinsurance laws and regulations and the requirements of the applicable Governmental Authorities in the Ceding Company Domiciliary State for the reinsurance provided by this Agreement.

Reinsurance Credit. The parties intend that the each Ceding Company be able to obtain full statutory financial statement credit for the reinsurance provided by this Agreement in the Ceding Company Domiciliary State its current jurisdiction of domicile throughout the entire term of this Agreement. The Reinsurer shall promptly notify the Ceding Company in writing of any event with respect to the Reinsurer that, if continuing as of the end of any financial statement period, would be reasonably likely to result in the Ceding Company being unable to take full statutory financial statement credit in the Ceding Company Domiciliary State for the reinsurance provided by this Agreement. The Ceding Company shall promptly notify the Reinsurer in writing of the occurrence of any other event or circumstance that has caused or will cause the Ceding Company to no longer receive such credit for reinsurance in the Ceding Company Domiciliary State, which notice shall describe in reasonable detail the event or development requiring such notice. Upon the occurrence of any event that, if continuing as of the end of any financial statement period, would be reasonably likely to result in the a Ceding Company being unable to take full statutory financial statement credit for the reinsurance provided by this Agreement in the Ceding Company Domiciliary State (a “Reinsurance Credit Event”)its current state of domicile, the Reinsurer, at its own expense, shall, within thirty (i30) forty-five (45) calendar days following the occurrence of such Reinsurance Credit Event or (ii) event or, if earlier, prior to the end of the calendar quarter during which such Reinsurance Credit Event occurredevent occurs, take all steps necessary to comply with all Applicable applicable Laws so as to permit the such Ceding Company to obtain full credit for the reinsurance provided by this Agreement in the Ceding Company Domiciliary State its current state of domicile throughout the entire term of this Agreement to the extent credit is not otherwise available under Applicable applicable Law, including the postings of letters of credit, converting the Trust Account into a . It is understood and agreed that any term or condition required by such applicable Law to be included in this Agreement for each Ceding Company to receive full statutory financial statement credit for the reinsurance trust or providing other acceptable security provided by this Agreement shall be deemed to be incorporated in accordance with the terms hereof, it being understood that the Reinsurer shall have the sole discretion to elect among the methods available to it in order to maintain such credit for reinsurance in compliance with this Section 4.01Agreement by reference. Furthermore, if, following a Reinsurance Credit Event, the Reinsurer chooses to convert the Trust Account into a credit for reinsurance trust, the Reinsurer and the Ceding Company Companies agree to reasonably cooperate to amend this Agreement or the Trust Agreement, or enter into other agreements or execute additional documents, in each case, as needed to comply with the credit for reinsurance laws and regulations and the requirements of the applicable Governmental Authorities Bodies in the current states of domicile of the Ceding Companies. Notwithstanding the foregoing, the Reinsurer shall have the option of determining the method of funding provided it is acceptable to the applicable Governmental Bodies. Notwithstanding the foregoing, the Reinsurer shall not be required to take any such actions pursuant to this Section 9.01 if after taking such actions, the applicable Ceding Company Domiciliary State for would nevertheless be unable to obtain statutory financial statement credit in respect thereof; provided, further, that nothing in this Section 9.01 shall be construed to require the reinsurance provided Reinsurer to consent to or accept any expansion in the scope of the Reinsured Liabilities assumed by the Reinsurer under this Agreement.