Common use of Reinsurer’s Limited Participation Clause in Contracts

Reinsurer’s Limited Participation. The parties recognize that circumstances may arise in which equity would require the Reinsurer, to the extent permitted by law, to share proportionately in Punitive Damages. Such circumstances are difficult to define in advance, but would generally be those situations in which the Reinsurer was an active party and, recommended, consented to, or ratified the act or course of conduct of the Company that ultimately resulted in the assessment of the Punitive Damages. In such situations, the Reinsurer and the Company may share such damages so assessed, in equitable proportions. For purposes of this Article, examples where the Reinsurer’s conduct may give rise to such responsibility include, but are not limited to, the following:

Reinsurer’s Limited Participation. The parties recognize that circumstances may arise in which equity would require the Reinsurer, to the extent permitted by law, to share proportionately in Punitive and Compensatory Damages. Such circumstances are difficult to define in advance, but would generally be those situations in which the Reinsurer was an active party and, in writing, recommended, consented to, or ratified the act or course of conduct of the Company that ultimately resulted in the assessment of the Punitive Damagesextra-contractual damages. In such situations, the Reinsurer and the Company may share such damages so assessed, in equitable proportions. For purposes of this ArticleArticle 12, the following are examples of where the Reinsurer’s conduct may give rise to such responsibility include, but are not limited to, the followingresponsibility:

Reinsurer’s Limited Participation. The parties recognize that circumstances may arise in which equity would require the Reinsurer, to the extent permitted by lawLaw, to share proportionately in Punitive Damages and Compensatory Damages. Such circumstances are difficult to define in advance, but would generally be those situations in which the Reinsurer was an active party and, in writing, recommended, consented to, or ratified the act or course of conduct of the Company that ultimately resulted in the assessment of the Punitive Damagesextra-contractual damages. In such situations, the Reinsurer and the Company may share such damages so assessed, in equitable proportions. For purposes of this ArticleArticle 11.02, the following are examples of where the Reinsurer’s 's conduct may give rise to such responsibility include, but are not limited to, the followingresponsibility: