Common use of Operating Expenses and Claims Clause in Contracts

Operating Expenses and Claims. Each Pool member shall contribute to the initial operating expenses and claims of the Pool as may be adjusted from time to time. The operating expense and claims contribution of any new member of the Pool shall be calculated by the Board on a basis consistent with the current operating expense and claims contributions of the existing members. "Operating expenses" includes the costs and expenses of the administration and operation of the Pool, and "claims" means claims incurred and actuarially reserved and settlements made and expenses allocated thereto. A member's share of operating expenses and claims contributions, whether initial or pursuant annual or periodic contribution shall be determined and assessed by the Board based upon the relative risks, losses and expenses attributable to such member's properties and activities.