Common use of Regulatory Intervention Clause in Contracts

Regulatory Intervention. In the event that the Reinsured becomes subject to any regulatory intervention that the Reinsurer considers will have a significant negative impact on the policyholders, the Reinsurer shall be entitled (but not obliged) to assume direct control of any losses under the 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.