FIRST PRIORITY PAYMENTS definition
FIRST PRIORITY PAYMENTS will be for (i) Allowed Claims under the Expedited Release Payment Option, (ii) Allowed Claims under the Explantation Payment Option, (iii) the "Base" payment for Claims Allowed under the Disease Payment Option and the Rupture Payment Option, (iv) Allowed Claims under the Expedited Release Payment Option and the Medical Condition Payment Option for Other Products Claimants; and (v) Allowed Claims for Silicone Material Claimants, along with related administrative costs. Allowed Claims of settling Claimants in Classes 4A, 6A, 6B, 6C, 6D, 14 and 15 are also defined as First Priority Payments. Payments in respect of Claims of non-settling Claimants in Classes 11, 13, 14, 14A and 17, which are called Settlement Fund Other Payments, will be made at the time such Claims are Allowed. The "SECOND PRIORITY PAYMENTS" include "Premium" payments under the Rupture Payment Option and the Disease Payment Option for Breast Implant Claimants and the Medical Payment Option for certain Other Products Claimants and any "increased severity" payments for Breast Implant Claims. The "Premium" payments entitle Breast Implant Claimants to receive additional compensation, up to 20% of the "Base" payments under the Disease Payment Option and 25% of the "Base" payment under the Rupture Payment Option. (See chart at pp. 20-22.) If a "Premium" is paid to a Breast Implant Claimant with a disease Claim, she will receive greater compensation than is available under the RSP for a comparable disease claim that does not include the rupture enhancement. The "Premium" payments provide Other Products Claimants additional compensation that, when combined with amounts received as "Base" payments, equal $36 million (NPV) in the aggregate. A factor that may affect the amounts actually received by Claimants is the competing rights of third parties, particularly those of hospitals, health benefit plans, health insurers and governmental agencies, to reimbursement from the settlement payment for prior expenditures. However, most of these competing Claims will be extinguished as a result of a settlement Dow Corning has proposed for the Domestic Health Insurers. This settlement is similar to the settlement reached with health insurers in the Revised Settlement Program. Dow Corning's settlement requires all participating insurers to waive any Claims, including rights of reimbursement, against Personal Injury Claimants. The settlement requires that a sufficient number of insurers participate in the settlemen...