Common use of Reinsurer Insolvency – Automatic Cancellation Clause in Contracts

Reinsurer Insolvency – Automatic Cancellation. 1. A Reinsurer's quota share participation in this Contract shall cancel or terminate automatically on a cut-off basis in the event the Reinsurer is placed into receivership or liquidation (whether voluntary or involuntary), or there are instituted against it proceedings for the appointment of a receiver, liquidator, rehabilitator, conservator, trustee in bankruptcy, or other agent known by whatever name, to take possession of its assets or control of its operations, or is declared insolvent by a regulatory authority with jurisdiction over the Reinsurer (any such event, an “Insolvency Event”). Such cancellation shall be effective as of the Premium Payment Date of the month in which the Insolvency Event occurs (after giving effect to any Premium and Claims payments due with respect to such Premium Payment Date). Except as set forth in subparagraph E(2) and (3) of this Article, the Reinsurer shall have no additional or outstanding obligations to the Company or the Original Insured following satisfaction of all Claims for Losses attributable to such Premium Payment Date.

Reinsurer Insolvency – Automatic Cancellation. 1. A Reinsurer's quota share participation in this Contract shall cancel or terminate automatically on a cut-off basis in the event the Reinsurer is placed into receivership or liquidation (whether voluntary or involuntary), or there are instituted against it proceedings for the appointment of a receiver, liquidator, rehabilitator, conservator, trustee in bankruptcy, or other agent known by whatever name, to take possession of its assets or control of its operations, or is declared insolvent by a regulatory authority with jurisdiction over the Reinsurer (any such event, an “"Insolvency Event”"). Such cancellation shall be effective as of the Premium Payment Date of the month in which the Insolvency Event occurs (after giving effect to any Premium and Claims payments due with respect to such Premium Payment Date). Except as set forth in subparagraph E(2) and (3) of this Article, the Reinsurer shall have no additional or outstanding obligations to the Company or the Original Insured following satisfaction of all Claims for Losses attributable to such Premium Payment Date.