Common use of Recovery from Third Party Clause in Contracts

Recovery from Third Party. The Reinsured shall promptly notify Reinsurer if the Reinsured should assert or bring a claim or action against a third party for contribution, indemnification or similar grounds to recover from the third party any monies paid or expenses incurred by the Reinsured in connection with a policy claim reinsured under this Agreement. Upon request, the Reinsured shall furnish Reinsurer with copies of written materials relating to such third party claim or action. Reinsurer shall promptly notify Reinsured of its decision whether or not to share in the expenses and potential recovery of any such proceeding. If Reinsurer declines to so accept any such proceeding, Reinsurer shall not participate in any costs of such proceeding and shall not share in any monies so recovered by the Reinsured. If the Reinsurer accepts such action, then the Reinsurer shall continue to share in the expenses of that proceeding and the Reinsurer shall share in any monies recovered by the Reinsured. The Reinsured shall keep the Reinsurer informed of the status of such proceeding or settlement negotiations in connection with such proceeding.