INSOLVENCY CLAUSE Clause Samples
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INSOLVENCY CLAUSE. Where an Insolvency Event (as defined below) occurs in relation to the Reinsured the following terms shall apply (and, in the event of any inconsistency between these terms and any other terms of this Agreement, these terms shall prevail):
A. Notwithstanding any requirement in this Agreement to the contrary:
(i) the Reinsurer shall be liable to pay the Reinsured even though the Reinsured is unable actually to pay, or discharge its liability to, its policyholder; but
(ii) nothing in this clause shall operate to accelerate the date for payment by the Reinsurer of any sum which may be payable to the Reinsured but for it being the subject of any Insolvency Event.
B. The existence, quantum, valuation and date for payment of any sum which the Reinsurer is liable to pay the Reinsured under this Agreement shall be those and only those for which the Reinsurer would be liable to the Reinsured if the liability of the Reinsured to its policyholders had been determined without reference to any term in any composition or scheme of arrangement or any similar such arrangement, entered into between the Reinsured and all or any part of its policyholders, unless and until the Reinsurer serves written notice to the contrary on the Reinsured in relation to any composition or scheme of arrangement.
C. The Reinsurer shall be entitled (but not obliged) to set-off, against any sum which it may be liable to pay the Reinsured, any sum for which the Reinsured is liable to pay the Reinsurer.
D. The Reinsurer shall be entitled (but not obliged) to assume direct control of any losses under this program by giving notice to the policyholder, the Reinsured or its representative. The Reinsurer will then assume total responsibility for such losses as though they had issued the underlying policy. An Insolvency Event shall occur if
(i) (a) (for the purposes of and in relation to A, B, C and D above) a winding up petition is presented in respect of the Reinsured or a provisional liquidator is appointed over it or if the Reinsured goes into administration, administrative receivership or receivership or if the Reinsured has a scheme of arrangement or voluntary arrangement proposed in relation to all or any part of its affairs; or
(b) (for the purposes of and in relation to A above) the Reinsured goes into compulsory or voluntary liquidation;
(c) (for the purposes of and in relation to D above) the Reinsured becomes subject to any regulatory intervention. or, in each case, if the Reinsured becomes...
INSOLVENCY CLAUSE. In the event of the insolvency of the Company, all modified coinsurance made, ceded, renewed or otherwise becoming effective under this Agreement shall be payable by the Reinsurer directly to the Company or to its liquidator, receiver or statutory successor on the basis of the liability of the Company under the Policies and Post-Closing Policies without diminution because of the insolvency of the Company. It is understood, however, that in the event of the insolvency of the Company, the liquidator or receiver or statutory successor of the Company shall give written notice of the pendency of a claim against the Company on a Policy or Post-Closing Policy within a reasonable period of time after such claim is filed in the insolvency proceedings and that during the pendency of such claim the Reinsurer may investigate such claim and interpose, at its own expense, in the proceeding where such claim is to be adjudicated any defense or defenses which it may deem available to the Company or its liquidator or receiver or statutory successor. It is further understood that the expense thus incurred by the Reinsurer shall be chargeable, subject to court approval, against the Company as part of the expense of liquidation to the extent of a proportionate share of the benefit which may accrue to the Company solely as a result of the defense undertaken by the Reinsurer.
INSOLVENCY CLAUSE. Where an Insolvency Event (as defined below) occurs in relation to the Reinsured, the following terms shall apply (and, in the event of any inconsistency between these terms and any other terms of this Agreement, these terms shall prevail):
(i) The Reinsurer shall be liable to pay the Reinsured even though the Reinsured may be unable actually to pay, or discharge its liability to, its policyholder; but
(ii) nothing in this clause shall operate to accelerate the date for payment by the Reinsurer of any sum that may be payable to the Reinsured but for it being the subject of any Insolvency Event.
B. The amount of any sum the Reinsurer is liable to pay the Reinsured under this Agreement shall be the amount the Reinsurer would be liable to pay to the Reinsured if the liability of the Reinsured to its policyholders had been determined without reference to any term in any composition or scheme of arrangement or any similar such arrangement, entered into between the Reinsured and all or any portion of its policyholders.
C. The Reinsurer shall continue to be entitled (but not obliged) to set-off, against any sum it may be liable to pay the Reinsured, any sum for which the Reinsured is liable to pay the Reinsurer.
INSOLVENCY CLAUSE. In the event of the insolvency of the Company, all reinsurance made, ceded, renewed or otherwise becoming effective under this Agreement shall be payable by the Reinsurer directly to the Company or to its liquidator, receiver or statutory successor on the basis of the liability of the Company under the Variable Contracts without diminution because of the insolvency of the Company. It is understood, however, that in the event of the insolvency of the Company, the liquidator or receiver or statutory successor of the Company shall give written notice of the pendency of a claim against the Company on a Variable Contract within a reasonable period of time after such claim is filed in the insolvency proceedings and that during the pendency of such claim the Reinsurer may investigate such claim and interpose, at its own expense, in the proceeding where such claim is to be adjudicated any defense or defenses which it may deem available to the Company or its liquidator or receiver or statutory successor. It is further understood that the expense thus incurred by the Reinsurer shall be chargeable, subject to court approval, against the Company as part of the expense of liquidation to the extent of a proportionate share of the benefit which may accrue to the Company solely as a result of the defense undertaken by the Reinsurer.
INSOLVENCY CLAUSE. The Reinsurer shall be paid or credited with its proportion of salvage (i.e. recoveries or reimbursements made or obtained by the Company) less the costs -15- <PAGE> involved in obtaining such salvage, excluding the office expenses of the Company and the salaries and expenses of all employees of the Company.
INSOLVENCY CLAUSE. In the event of insolvency of the Company, the reinsurance provided by this Agreement shall be payable by the Reinsurer on the basis of the liability of the Company as respects Policies covered hereunder, without diminution because of such insolvency, directly to the Company or its liquidator, receiver, conservator or statutory successor except as provided in Sections 4118(a)(1)(A) and 1114(c) of the New York Insurance Law.
INSOLVENCY CLAUSE. In the event of the insolvency of the Company, this reinsurance shall be payable directly to the Company, or its liquidator, receiver, administrator or administrative receiver on the basis of the liability of the Company without diminution because of the insolvency of the Company or because the liquidator, receiver, administrator or administrative receiver of the Company has failed to pay all or a portion of any claim. It is agreed, however, that within a reasonable time the liquidator, receiver, administrator or administrative receiver of the Company shall give written notice to each Reinsurer of the pendency of a claim against the Company indicating the subject Bond reinsured by such Reinsurer. During the pendency of such claim, each Reinsurer may investigate such claim and interpose, at its own expense, in the proceeding where such claim is to be adjudicated, any defense or defenses that it may deem available to the Company or its liquidator, receiver, administrator or administrative receiver. This reinsurance shall be payable by the Reinsurer to the Company, or to its liquidator, receiver, administrator or administrative receiver, except (a) where this Agreement (by way of an endorsement hereto with respect to any Bond) specifically provides for another payee of this reinsurance in the event of the insolvency of the Company and (b) where the Reinsurer, with the consent of the payees under the Bond, has assumed the Company's direct obligations to such payees in substitution for the obligations of the Company to such payees. Any reinsurance payable by the Reinsurer to another payee in accordance with the provisions of clauses (a) and (b) of the preceding sentence shall not be deemed a "Loss with respect to a Bond" for purposes of clause (i) of the definition of "Ultimate Net Loss".
INSOLVENCY CLAUSE. The attached Insolvency Clause is hereby made a part of this agreement.
INSOLVENCY CLAUSE. In the event of insolvency and the appointment of a conservator, liquidator, or statutory successor of the Companythe portion of any risk or obligation assumed by the Reinsurer shall be payable to the conservator, liquidator, or statutory successor on the basis of claims allowed against the insolvent Company by any court of competent jurisdiction or by any conservator, liquidator, or statutory successor of the Company having the authority to allow such claims, without diminution because of that insolvency , or because the conservator, liquidator, or statutory successor has failed to pay all or a portion of any claims. It is agreed, however, that the conservator, liquidator, or statutory successor of the Company shall give written notice to the Reinsurers of the pendency of a claim against the Company which would involve a possible liability on the part of the Reinsurers, indicating the policy or bond reinsured, within a reasonable time after such claim is filed in the conservation or liquidation proceeding or in the receivership. It is further agreed that during the pendency of such claim the Reinsurers may investigate such claim and interpose, at their own expense, in the proceeding where such claim is to be adjudicated, any defense or defenses that they may deem available to the Company or its conservator, liquidator, or statutory successor. The expense thus incurred by the Reinsurers shall be chargeable, subject to the approval of the Court, against the Company as part of the expense of conservation or liquidation to the extent of a pro rata share of the benefit which may accrue to the Company solely as a result of the defense undertaken by the Reinsurers. Where two or more Reinsurers are involved in the same claim and a majority in interest elect to interpose defense to such claim, the expense shall be apportioned in accordance with the terms of the Agreement as though such expense had been incurred by the Company.
INSOLVENCY CLAUSE. The ceding insurer and the reinsurer agree that, in the event of the insolvency of the ceding insurer, as to all reinsurance made, ceded, renewed or otherwise becoming effective after the effective date of this agreement, the reinsurance shall be payable by the reinsurer on the basis of the amount of liability of the ceding insurer under the contract or contracts reinsured, without diminution because of the insolvency of the ceding insurer; furthermore, that such amount shall be paid directly to the ceding insurer or its liquidator, receiver or other statutory successor.