Common use of Special Commutation Clause in Contracts

Special Commutation. A. In the event a Reinsurer is subject to any of the circumstances enumerated in paragraph A of the Special Termination Article, the Company may require a commutation of that portion of any excess Loss hereunder represented by any outstanding obligations of the Reinsurer. "Outstanding obligations" shall include but not be limited to: 19\AQUA1007Page 3 AONEmpower Results® 1. Loss and benefits and Loss Expense paid by the Company but not recovered from the Reinsurers; 2. Loss and Loss Expense reported and outstanding; 3. An allowance for incurred but not reported Losses and incurred but not reported Loss Expenses as carried by the Company on its books; and 4. Unearned premium (if applicable). B. If the Company elects to require commutation as provided in paragraph A above, within 30 days after notifying the Reinsurer of its election to require commutation, the Company shall submit a statement of valuation of the Reinsurer's outstanding obligations as of the effective date of the commutation. Such statement of valuation shall include the elements considered reasonable to establish the excess Loss. Within 30 days of receipt of such statement of valuation, the Reinsurer shall pay the amount requested. C. Payment by the Reinsurer of the amount agreed in accordance with paragraph B above shall, effective with the date of commutation, release the Reinsurer from all further liability for any outstanding obligations, known or unknown, under this Contract and shall release the Company from all further liability for any adjustment or return amounts including, but not limited to, salvage or subrogation, known or unknown, to the Reinsurer under this Contract. D. This Article shall survive the expiration of this Contract and the termination of any Reinsurer's percentage share in this Contract.

Special Commutation. A. In the event a Subscribing Reinsurer is subject to any of the circumstances enumerated in paragraph A of the Special Termination Article, the Company may require a commutation of that portion of any excess Loss loss hereunder represented by any outstanding obligations of the Subscribing Reinsurer. "Outstanding For purposes of this Article, “outstanding obligations" ” shall include include, but not be limited to: 19\AQUA1007Page 3 AONEmpower Results®, the following amounts (each determined as of the effective date of the commutation): 1. Loss and benefits and Loss Expense Reinsurance liabilities that have been paid by the Company but not recovered from the Reinsurers; 2. Loss and Loss Expense Subscribing Reinsurer; 2 Reinsurance liabilities that are reported and outstanding; 3. An allowance for reinsurance liabilities that have been incurred but not reported Losses and incurred but not reported Loss Expenses losses, as carried determined by the Company on its booksCompany; and 4. Unearned premium (if applicable). B. If the Company elects to require commutation as provided in paragraph A above, within 30 days after notifying the Subscribing Reinsurer of its election to require such commutation, the Company shall submit a statement of valuation of the Subscribing Reinsurer's ’s outstanding obligations as of the effective date of the commutation. Such statement of valuation shall include the elements considered reasonable to establish the Effective: January 1, 2019 U1G30006 7 of 36 DOC: December 17, 2018 ▇▇▇ ▇▇▇▇▇▇▇▇▇ excess Lossloss. Within 30 days of receipt of such statement of valuation, the Subscribing Reinsurer shall pay the Company the amount requested. C. Payment by the Subscribing Reinsurer of the amount agreed calculated and delivered in accordance with paragraph paragraphs A and B above shall, effective with the date of commutation, release the Subscribing Reinsurer from all further liability for any outstanding obligations, known or unknown, under this Contract and shall release the Company from all further liability for any adjustment or return amounts including, but not limited to, salvage or subrogation, known or unknown, to the Subscribing Reinsurer under this Contract. D. This Article shall survive the expiration of this Contract and the reduction or termination of any Subscribing Reinsurer's ’s percentage share in this Contract.