Common use of INSOLVENCY CLAUSE Clause in Contracts

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. In the event of the insolvency and of the appointment of a conservatorCompany, all 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 except (a) where this Agreement specifically provides another payee of such reinsurance in the event of the Companythe portion insolvency of any risk the Company or obligation (b) where the Reinsurer, in its sole discretion has elected to obtain the consent of the direct policyholders has assumed by such policy obligations of the Company as direct obligations of the Reinsurer shall be payable to the conservator, liquidator, beneficiaries under such Policies or statutory successor Post-Closing Policies and in substitution for the obligations of the Company to such beneficiaries on the basis of claims allowed against the insolvent Company by any court of competent jurisdiction or by any conservator, liquidator, or statutory successor liability of the Company having under the authority to allow such claimsPolicies and Post-Closing Policies, without diminution because of that the insolvency , or because of the conservator, liquidator, or statutory successor has failed to pay all or a portion of any claimsCompany. It is agreedunderstood, however, that in the conservatorevent of the insolvency of the Company, liquidator, the liquidator or receiver 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 on a possible liability on the part of the Reinsurers, indicating the policy Policy or bond reinsured, Post-Closing Policy within a reasonable period of time after such claim is filed in the conservation or liquidation proceeding or in the receivership. It is further agreed insolvency proceedings and that during the pendency of such claim the Reinsurers Reinsurer may investigate such claim and interpose, at their its own expense, in the proceeding where such claim is to be adjudicated, adjudicated any defense or defenses that they which it may deem available to the Company or its conservator, liquidator, liquidator or receiver or statutory successor. The It is further understood that the expense thus incurred by the Reinsurers Reinsurer shall be chargeable, subject to the approval of the Courtcourt approval, against the Company as part of the expense of conservation or liquidation to the extent of a pro rata proportionate 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 CompanyReinsurer.

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 The reinsurance provided by the Reinsurer this Contract shall be payable by the Reinsurers directly to the conservator, Company or to its liquidator, receiver 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 liability of the Company having under the authority to allow such claims, contracts reinsured without diminution because of that the insolvency of the Company. In the event of the insolvency of the Company, the liquidator 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, receiver or statutory successor of the Company shall give written notice to the Reinsurers of the pendency of a each claim against the Company which would involve on a possible liability on the part of the Reinsurers, indicating the policy or bond reinsured, 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 insolvency proceeding; and during the pendency of such claim claim, the Reinsurers may investigate such claim and interpose, at their own expense, in the proceeding where such claim is to be adjudicated, adjudicated any defense or defenses that they which it may deem available to the Company Company, its liquidator or its conservator, liquidator, receiver or statutory successor. The expense thus incurred by the Reinsurers shall be chargeable, subject to the approval of the Courtcourt approval, against the Company as part of the expense of conservation or liquidation to the extent of a pro rata such proportionate share of the benefit which may as shall accrue to the Company solely as a result of the defense undertaken by the Reinsurers. Where two This reinsurance shall be payable as hereinbefore in this paragraph provided except as otherwise provided by Section 315 (relating to Fidelity and Surety Risks) of the Insurance Law of New York or more Reinsurers are involved except (a) where the contract specifically provides another payee of such reinsurance in the same claim event of the insolvency of the Company and a majority (b) where the Reinsurers with the consent of the direct insured or insureds have assumed such policy obligations of the Reinsurers to the payees under such policies and in interest elect to interpose defense substitution for the obligations of the Company 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 Companypayees.

INSOLVENCY CLAUSE. In the event of the insolvency and the appointment of a conservator, liquidator, or statutory successor of the Companythe portion of any risk or obligation assumed by the Reinsurer Company, this reinsurance shall be payable directly to the conservatorCompany, or its liquidator, receiver, conservator or statutory successor on the basis of claims allowed against the insolvent liability of the Company by any court without diminution due to the insolvency of competent jurisdiction the Company or by any conservator, because the liquidator, receiver, conservator 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, receiver, conservator or statutory successor of the Company shall give written notice to the Reinsurers Reinsurer of the pendency of a claim any claims against the Company indicating the policy reinsured, which claims would involve a possible liability on the part of the Reinsurers, indicating the policy or bond reinsuredReinsurer, within a reasonable time after such claim is filed in the conservation or liquidation proceeding or in the receivership. It is further agreed , and that during the pendency of such claim claim, the Reinsurers Reinsurer may investigate such claim and interpose, at their its own expense, in the any proceeding where such claim is to be adjudicated, any defense or defenses that they it may deem available to the Company or its conservator, liquidator, receiver, conservator or statutory successor. The expense expenses thus incurred by the Reinsurers Reinsurer shall be chargeable, subject to the approval of the Court, against the Company as part of the expense of conservation conversion 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 ReinsurersReinsurer. Where two The reinsurance shall be payable by the Reinsurer to the Company or more Reinsurers are involved its liquidator, receiver, conservator or statutory successor, except (a) where the Agreement specifically provides another payee of such reinsurance in the same claim event of the insolvency of the Company and a majority (b) where the Reinsurer with the consent of the direct Insured or Insured has assumed such policy obligations of the Company as direct obligations of the 5 Reinsurer to the payees under such policies and in interest elect to interpose defense substitution for the obligations of the Company to such claimpayees. The Company or the Reinsurer may offset any balance, whether on account of premium, commission, claims or losses, adjustment expense, salvage, or any other amount due from one party to the expense shall be apportioned in accordance with other under this Agreement or under any other agreement herefore or hereafter entered into between the terms of Company and the Agreement Reinsurer, whether acting as though such expense had been incurred by the Companyassuming reinsurer or as ceding company.

INSOLVENCY CLAUSE. a) In the event of the insolvency of the Company and the appointment of a conservator, liquidator, liquidator or statutory successor of the Companythe portion of any risk or obligation assumed Company, the reinsurance provided by the Reinsurer this Agreement shall be payable to the such conservator, liquidator, liquidator or statutory successor immediately upon demand, subject to the right of offset and with reasonable provisions for verification of the Reinsurer's liability, on the basis of claims claim allowed against the insolvent Company by any court of if competent jurisdiction or by any conservator, liquidator, or statutory successor of the Company having the authority to allow such claims, without with diminution because of that such insolvency , or because the such conservator, liquidator, liquidator or statutory successor has failed to pay all or a portion of any claims. It is agreed, however, that Payments by the Reinsurer as above set forth shall be made directly to the Company or to its conservator, liquidator or statutory successor, except where this Agreement specifically provides another payee of such reinsurance in the event of the insolvency of the Company. b) In the event of the insolvency of the Company, the liquidator, conservator or statutory successor of the Company shall give the Reinsurer written notice to the Reinsurers of the pendency of a each claim against the Company which would involve on a possible liability on the part of the Reinsurers, indicating the policy or bond reinsured, reinsured within a reasonable time after such claim is filed in the conservation or liquidation proceeding or in the receivershipinsolvency proceeding. It is further agreed that during During the pendency of such claim claim, the Reinsurers may Reinsurer may, at its own expense, investigate such claim and interpose, at their own expense, interpose in the proceeding where such claim is to be adjudicated, adjudicated any defense or defenses that they which it may deem available to the Company or Company, its conservator, liquidator, liquidator or statutory successor. The Subject to court approval, any expense thus incurred by the Reinsurers Reinsurer shall be chargeable, subject to the approval of the Court, chargeable against the Company as part of the expense of conservation or liquidation to the extent of a pro rata such proportionate share of the benefit which may as shall 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 CompanyReinsurer.

INSOLVENCY CLAUSE. (If more than one reinsured company is included in the designation of "Company" this Article shall apply only to the insolvent company or companies) In the event of the insolvency of the Company and the appointment of a conservator, liquidator, liquidator or statutory successor of successor, the Companythe portion of any risk or obligation assumed reinsurance provided by this Agreement shall be payable by the Reinsurer shall be payable directly to the conservator, Company or to its liquidator, receiver 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 liability of the Company having under the authority contract or contracts reinsured. Subject to allow such claimsthe right of offset and the verification of coverage, the Reinsurer shall pay its share of the loss without diminution because of that the insolvency , or because of the conservator, Company. The liquidator, or statutory successor has failed to pay all or a portion of any claims. It is agreed, however, that the conservator, liquidator, receiver or statutory successor of the Company shall give written notice to the Reinsurers of the pendency of a each claim against the Company which would involve on a possible liability on the part of the Reinsurers, indicating the policy Policy or bond reinsured, reinsured within a reasonable time after such claim is filed in the conservation or liquidation proceeding or in the receivershipinsolvency proceeding. It is further agreed that during During the pendency of such claim claim, the Reinsurers may Reinsurer may, at its own expense, investigate such claim and interpose, at their own expense, interpose in the proceeding where such claim is to be adjudicated, adjudicated any defense or defenses that they which it may deem available to the Company Company, its liquidator or its conservator, liquidator, receiver or statutory successor. The Subject to court approval, any expense thus incurred by the Reinsurers Reinsurer shall be chargeable, subject to the approval of the Court, chargeable against the Company as part of the expense of conservation or liquidation to the extent of a pro rata such proportionate share of the benefit which may as shall accrue to the Company solely as a result of the defense undertaken by the ReinsurersReinsurer. Where two or more Reinsurers are involved The reinsurance shall be payable as set forth above except where (i) the Agreement specifies another payee of such reinsurance in the same claim event of the insolvency of the Company and a majority (ii) the Reinsurer with the consent of the direct insureds has assumed such policy obligations of the Company as its direct obligations to the payees under such Policies, in interest elect to interpose defense substitution for the obligations of the Company to such claim, payees; or where the expense shall be apportioned Reinsurer has guaranteed performance of a contract insuring against physical damage to property for the benefit of No. 2521-0031 mortgagees or other loss payees named in this Agreement in accordance with the terms Section 1114(c) of the Agreement as though such expense had been incurred by the CompanyNew York Insurance Law.

INSOLVENCY CLAUSE. In Each party hereby agrees that in the event of the insolvency and of any party, this Agreement shall be so construed that the appointment of a conservatorreinsurance due hereunder shall be payable directly to the insolvent party or its liquidator, liquidatorreceiver, 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 reinsurer on the basis of claims allowed against the liability of the insolvent Company by any court party under the contract or contracts reinsured without diminution because of competent jurisdiction or by any conservator, the insolvency. It is further agreed that the liquidator, the receiver, or the 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 insolvent party shall give written notice to the Reinsurers reinsurer of the pendency of a claim against the Company which would involve a possible liability insolvent party on the part of the Reinsurers, indicating the policy or bond reinsured, reinsured within a reasonable time after such claim is filed in the conservation or liquidation proceeding or in the receivership. It is further agreed solvency proceedings; that during the pendency of such claim the Reinsurers reinsurer may investigate such claim and interpose, interpose at their own expense, expense in the proceeding where such claim is to be adjudicated, adjudicated any defense or defenses that which they may deem available to the Company insolvent party or its conservatorliquidator, liquidatorreceiver, or statutory successor. The expense ; that the expenses thus incurred by the Reinsurers reinsurer shall be chargeable, chargeable subject to the court approval of the Court, against the Company insolvent party as part of the expense of conservation or liquidation to the extent of a pro rata share of the proportionate benefit which may accrue to the Company insolvent party solely as a result of the defense undertaken by the Reinsurersreinsurer. Where two It is further agreed and understood that as to all reinsurance made, ceded, renewed or more Reinsurers are involved in the same claim and a majority in interest elect to interpose defense to such claimotherwise becoming effective hereunder, the expense reinsurance shall be apportioned in accordance with the terms of the Agreement as though such expense had been incurred payable by the Companyinsurer directly to the insolvent party or to its liquidator, receiver or statutory successor.