Common use of Extended Termination Date Clause in Contracts

Extended Termination Date. On the Partial Commutation Date, the Reinsurer and the Ceding Insurer will settle all remaining claims and obligations under this Reinsurance Agreement with respect to the relevant Covered Event by the Reinsurer paying and the Ceding Insurer accepting all payments due to the Ceding Insurer under this Reinsurance Agreement (less any amounts previously paid under this Reinsurance Agreement), which settlement shall include payment of any Loss Reserves, subject to (a) the Claims Procedures being performed by the Claims Reviewer with respect to Paid Losses and (b) the amount of any Loss Reserves included in such settlement being assessed for reasonableness by the Loss Reserve Specialist and, if deemed to be unreasonable by the Loss Reserve Specialist, the Loss Reserves shall be equal to the lesser of (i) the amount of Loss Reserves claimed by the Ceding Insurer in the Proof of Loss Claim delivered with respect to the Partial Commutation Date and (ii) the amount that represents the reasonable best estimate of Loss Reserves by the Loss Reserve Specialist. The Outstanding Limit shall be reduced by the amount of such Partial Commutation as of the Partial Commutation Date.