Orphan Contracts definition
Orphan Contracts mean those ELNY Contracts that, under the state Guaranty Association laws that are applicable as of the Liquidation Date, would not be covered at all by any Guaranty Association (except, in some cases, by the New York Article 75 GA), due solely to ELNY’s insurance licensing history or status, as identified in Schedule 1.15. No ELNY Contract that has any portion identified as an Orphan Contract may have any other portion of the ELNY Contract designated as either (i) an Excluded Contract or (ii) a Covered Contract.
Examples of Orphan Contracts in a sentence
For purposes of this Section 7.2.3, Orphan Contracts shall be treated as if they were covered by a Guaranty Association to the extent of the Protected Orphan Benefits.
For the avoidance of doubt, the enhancement percentage provided in this Section 4.2.4 for Uncovered Contracts (which excludes Orphan Contracts) shall be the lesser of 103% and Y%, where Y = the greater of (a) 110.84 – 0.14*X and (b) 100.1, and where X (in millions) is the present value of Protected Orphan Benefits rounded down to the nearest whole million number.