Common use of Offset and Recoupment Clause in Contracts

Offset and Recoupment. Any debts or credits, matured or unmatured, liquidated or unliquidated, regardless of when they arose or were incurred, in favor of or against either Ceding Company or Reinsurer with respect to this Agreement are deemed mutual debts or credits, as the case may be, and shall be set off and recouped, and only the balance shall be allowed or paid. The right to offset and recoupment shall not be affected or diminished because of the insolvency of either Party; provided, however, that in the event of an insolvency of either Party, offset and recoupment will only be allowed in accordance with Applicable Law.

Offset and Recoupment. Any debts or credits, matured or unmatured, liquidated or unliquidated, regardless of when they arose or were incurred, in favor of or against either Ceding Company or Reinsurer with respect to this Reinsurance Agreement are deemed mutual debts or credits, as the case may be, and shall be set off and recouped, and only the balance shall be allowed or paid. The right to offset and recoupment shall not be affected or diminished because of the insolvency of either Party; provided, however, that in the event of an insolvency of either Party, offset and recoupment will only be allowed in accordance with Applicable Law.