REINSURANCE PREMIUM Clause Samples
The Reinsurance Premium clause defines the payment obligations of the ceding insurer to the reinsurer for the coverage provided under the reinsurance agreement. It typically outlines how the premium amount is calculated, the schedule for payments, and any adjustments based on factors such as the volume of underlying insurance or loss experience. This clause ensures that the reinsurer receives appropriate compensation for assuming risk, and it provides clarity on the financial arrangements between the parties, thereby reducing the potential for disputes over payment terms.
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REINSURANCE PREMIUM. A. As premium for each excess layer of reinsurance coverage provided by this Contract, the Company shall pay the Reinsurer the greater of the following:
1. The amount, shown as “Minimum Premium” for that excess layer in Schedule A attached hereto (or a pro rata portion of the Subscribing Reinsurer’s share, in the event that such Subscribing Reinsurer’s share under any excess layer is terminated prior to January 1, 2007); or
2. The percentage, shown as “Premium Rate” for that excess layer in Schedule A attached hereto, of the Company’s net earned premium for the term of this Contract
B. The Company shall pay the Reinsurer an deposit premium for each excess layer of the amount, shown as “Deposit Premium” for that excess layer in Schedule A attached hereto, in four equal installments of the amount, shown as “Quarterly Deposit Premium” for that excess layer in Schedule A attached hereto, on January 1, April 1, July 1 and October 1 of 2006. In the event that a Subscribing Reinsurer’s share under any excess layer hereof is terminated prior to January 1, 2007, no quarterly deposit installments for such layer(s) shall be due to such Subscribing Reinsurer after the effective date of termination.
C. Within 60 days after the termination or expiration of this Contract, the Company shall provide a report to the Reinsurer setting forth the premium due hereunder for each excess layer, computed in accordance with paragraph A, and any additional premium due the Reinsurer or return premium due the Company for each such excess layer shall be remitted promptly.
D. “Net earned premium” as used herein is defined as gross earned premium of the Company for the classes of business reinsured hereunder, less the earned portion of premiums ceded by the Company for reinsurance which inures to the benefit of this Contract. For purposes of calculating net earned premium, 90.0% of Homeowners Multiple Peril and 80.0% of Commercial Multiple Peril total basic policy premium on indivisible premium policies shall be considered subject premium.
REINSURANCE PREMIUM. The YRT Reinsurance Premium for each coverage shall equal (i) x (ii) x (iii) / 1,000, where:
REINSURANCE PREMIUM. As a condition precedent to the Reinsurers' obligations hereunder, the Company shall pay to the Reinsurers 1.25% of the Company's subject net earned premium during the term of the Agreement, subject to a minimum reinsurance premium of $823,600 and a deposit reinsurance premium of $1,029,600.
REINSURANCE PREMIUM. A. As premium for each excess layer of reinsurance coverage provided by this Contract, the Company shall pay the Reinsurer the amount, shown as "Premium" for that excess layer in Schedule A attached hereto, in two equal installments of the amount, shown as "Installment Premium" for that excess layer in Schedule A attached hereto, on September 2, 2004 and March 1, 2005.
B. The Company shall remit additional premium, if any, on December 1, 2004. The additional premium shall be calculated by multiplying the "Additional Premium" for each excess layer in Schedule A attached hereto, by the following:
1. As respects the underlying excess layer of coverage provided by this Contract, the ratio of the ultimate net loss resulting from Hurricane ▇▇▇▇▇▇▇ incurred by reinsurers under Section I of the Company's Underlying Excess Catastrophe and Reinstatement Premium Protection Reinsurance Contract, effective July 1, 2004, to the amount, shown as "Reinsurer's Per Occurrence Limit" in Schedule A attached hereto, for the underlying excess layer.
2. As respects the first, second and third excess layers of coverage provided by this Contract, the ratio of ultimate net loss resulting from Hurricane ▇▇▇▇▇▇▇ incurred by reinsurers under the corresponding excess layer of the Company's Florida Only Excess Catastrophe Reinsurance Contract, effective June 1, 2004, to the amount, shown as "Reinsurer's Per Occurrence Limit" in Schedule A attached hereto for that excess layer. Quarterly recalculations and remittances of the additional premium, if any, due for each excess layer shall be made until all losses subject hereto have been finally settled.
REINSURANCE PREMIUM. A. As premium for the reinsurance provided hereunder, the Company shall pay the Reinsurer 0.635% of its Net Earned Premium during the term of this Contract, subject to a minimum premium of $2,994,000.
B. The Company shall pay the Reinsurer a deposit premium of $3,327,000 in four equal installments of $831,750 on April 1; July 1; October 1, 2008; and January 1, 2009.
C. Within 90 days after the expiration of this Contract, the Company shall provide a report to the Reinsurer setting forth the premium due hereunder, computed in accordance with paragraph A, and any additional premium due the Reinsurer or return premium due the Company shall be remitted promptly.
REINSURANCE PREMIUM. Each Accounting Period, the Cedent shall pay to the Reinsurer a "Reinsurance Premium" in an amount equal to the Reinsurer's quota share of the gross Policy premiums and deposits collected during the Accounting Period by the Cedent, net of any premiums paid under any Existing Reinsurance as defined in Schedule B. The Reinsurance Premiums paid to the Reinsurer by the Cedent shall be remitted to the Reinsurer at the end of the Accounting Period during which the gross premiums were collected by the Cedent.
REINSURANCE PREMIUM. A. As premium for each excess layer of reinsurance coverage provided by this Contract, the Company shall pay the Reinsurer a premium equal to the product of the following (or a pro rata portion thereof in the event the term of this Contract is less than 12 months), subject to a minimum premium of the amount, shown as "Minimum Premium" for that excess layer in Schedule A attached hereto (or a pro rata portion thereof in the event the term of this Contract is less than 12 months):
1. The amount, shown as "Annual Deposit Premium" for that excess layer in Schedule A attached hereto; times
2. The percentage calculated by dividing (a) the actual Average Annual Loss ("AAL") determined by the Company's wind insurance in force on September 30, 2015, by (b) the original AAL of the amount, shown as "AAL" for that excess layer in Schedule A attached hereto. However, if the difference between the amount, shown as "Annual Deposit Premium" for that excess layer in Schedule A attached hereto, and the premium calculated in accordance with this paragraph A for the excess layer is less than a 10.0% increase or decrease, the premium due the Reinsurer will equal the amount, shown as "Annual Deposit Premium" for that excess layer in Schedule A attached hereto. The Company's AAL shall be derived by averaging the applicable data produced by Applied Insurance Research (AIR) Touchstone v2.0 and Risk Management Solutions (RMS) RiskLink v15 catastrophe modeling software, in the long-term perspective, including secondary uncertainty and loss amplification, but excluding storm surge. It is understood that the calculation of the actual AAL shall be based on the amount, shown as "Reinsurer's Per Occurrence Limit" for that excess layer in Schedule A attached hereto, net of (1) the FHCF mandatory layer of coverage purchased by the Company using the current estimates of the mandatory FHCF coverage of 75% of $775,000,000 excess of $265,000,000, and of (2) the Company's FHCF Supplement Layer Reinsurance Contract (15\F7V1085), which shall be deemed to be placed at 15.0%.
B. The Company shall pay the Reinsurer an annual deposit premium for each excess layer of the amount, shown as "Annual Deposit Premium" for that excess layer in Schedule A attached hereto, in four equal installments of the amount, shown as "Deposit Premium Installment" for that excess layer in Schedule A attached hereto, on July 1 and October 1 of 2015, and on January 1 and April 1 of 2016. However, in the event this Contract ...
REINSURANCE PREMIUM. (a) No later than five (5) Business Days prior to the anticipated Closing Date, Aspen shall deliver to the Reinsurer a statement in the form of Schedule 3.1(a) (the “Closing Statement”) hereto setting forth its good faith estimate of (i) the Estimated New Reinsurance Premium (including the Estimated New Reinsurance Premium Accrued Interest, the Roll- forward Amount and the ULAE Reimbursement Amount used to calculate the Estimated New Reinsurance Premium (the “Estimated Roll-forward Amount” and the “Estimated ULAE Reimbursement Amount,” respectively)) and (ii) the Initial Required Collateral Amount (the “Estimated Initial Required Collateral Amount”), in each case, as of the Closing Date. On the Closing Date, ▇▇▇▇▇ shall pay the Reinsurer the Estimated New Reinsurance Premium by establishing a funds withheld account on its books and records, which shall be clearly designated as a notional account on the books and records of Aspen for the benefit of the Reinsurer (the “Funds Withheld Account”) with an initial balance equal to the Estimated New Reinsurance Premium. Aspen shall, in its sole discretion, determine how to allocate the initial Funds Withheld Account Balance among the reinsureds included in the definition of “Aspen.”
(b) All amounts held in the Existing Trust Accounts to secure the Reinsurer’s obligations under the Original Agreement shall remain in such Existing Trust Accounts or be deposited into the new Trust Accounts as of the Closing Date, in either case, to secure the Reinsurer’s obligations under this Agreement. For the avoidance of doubt, the Parties acknowledge that such funds originated from the premium paid under the Original Agreement pursuant to which the Reinsurer assumed a portion of the liabilities being ceded pursuant to this Agreement and, as such, remain premium paid to the Reinsurer (including for U.S. federal tax purposes, except to the extent otherwise required by Applicable Law).
(c) The Reinsurer shall be permitted to instruct any bank issuing a Letter of Credit in support of its obligations under the Original Agreement to redesignate such Letter of Credit as of the Closing Date as being issued in support of the Reinsurer’s obligations under this Agreement and Aspen shall provide any consent or other cooperation reasonably required to effect such redesignation. For the avoidance of doubt, the Parties acknowledge that as of the Closing Date, Aspen shall have no right to, and shall not, draw on any Letter of Credit issued in r...
REINSURANCE PREMIUM. A. As premium for the reinsurance provided hereunder, the Company shall pay the Reinsurer 0.4642% times its Net Earned Premium for the term of this Contract subject to a Minimum Premium of $1,056,000.
B. The Company shall pay the Reinsurer a Deposit Premium of $1,320,000 payable in quarterly installments on January 1, April 1, July 1 and October 1.
C. Within 90 days after the expiration of this Contract, the Company shall provide a report to the Reinsurer setting forth the premium due hereunder, computed in accordance with paragraph A, and if the premium so computed is greater than the previously paid Deposit Premium, the balance shall be remitted by the Company with its report.
D. If this Contract expires on a runoff basis, the Company shall pay to the Reinsurer a premium for the runoff period equal to the expiring rate times its Net Earned Premium for the runoff period. The runoff premium shall be calculated and paid within 90 days after the end of each three-month period during the runoff period. There shall be no minimum premium requirement for the runoff period.
REINSURANCE PREMIUM. Within 25 days after the close of each calendar quarter, the Company shall pay to the Reinsurer one quarter of the flat reinsurance premium stipulated in the section entitled REINSURANCE PREMIUM.