Terminal Accounting and Settlement Sample Clauses
The TERMINAL ACCOUNTING AND SETTLEMENT clause establishes the procedures for finalizing all financial accounts and obligations between parties at the conclusion of their contractual relationship. It typically outlines the process for reconciling outstanding payments, resolving any discrepancies, and ensuring that all amounts due are accurately calculated and paid. For example, this may involve a final review of invoices, adjustments for overpayments or underpayments, and a timeline for completing the settlement. The core function of this clause is to provide a clear and fair mechanism for closing out financial matters, thereby preventing disputes and ensuring both parties fulfill their remaining obligations.
Terminal Accounting and Settlement. 1. TERMINAL ACCOUNTING. A Terminal Accounting and Settlement shall take place if: (1) any reinsurance under this Agreement is recaptured in accordance with Article XIII Paragraph 5; (2) any portion or percentage of all reinsurance under this Agreement is recaptured in accordance with Article VIII, Paragraph 4; (3) the Policies are subject to a Program of Internal Replacement as described in Article VIII, Paragraph 5; or (4) this Agreement is terminated.
Terminal Accounting and Settlement. 22 ARTICLE IX REPRESENTATIONS............................................. 24 ARTICLE X ARBITRATION................................................. 25 ARTICLE XI INSOLVENCY.................................................. 26
Terminal Accounting and Settlement. Effective at 12:00am EST on January 1, 2015, the Reinsurer is relieved of liability for any claim, benefit or loss under this Agreement without regard to the date of incurral of such claim, benefit or loss, and the Ceding Company is relieved of liability for any payment due to the Reinsurer under this Agreement.
Terminal Accounting and Settlement. 1. Terminal Accounting. In the event that all reinsurance under this Agreement is terminated in accordance with Article III, a terminal accounting and settlement shall take place.
Terminal Accounting and Settlement. 1. Terminal Accounting. A Terminal Accounting and Settlement shall take place ------------------- if: (1) all of the Policies are recaptured in accordance with Article XII Paragraph E (Insolvency of Reinsurer); (2) all, a portion or a percentage of the Policies are recaptured in accordance with Article VII, Paragraph 4 (Ceding Company election); (3) some of the Policies are recaptured in accordance with Article VII, Paragraph 5 (Program of Internal Replacement); or (4) this Agreement is terminated for all Policies under Article VII Paragraph 6 (Nonpayment) or upon the mutual agreement of the parties.
Terminal Accounting and Settlement. (a) In the event that this Agreement is terminated for both in-force and new business for reasons set forth elsewhere in this Agreement, a terminal accounting and settlement shall occur.
(b) The "Terminal Accounting Date" shall be the earliest of: (a) the effective date of termination of this Agreement, or (b) any other date mutually agreed by the Parties in writing.
(c) The final settlement amount shall be determined as follows: A + B – C where, “A” is the unearned reinsurance premium as of the Terminal Accounting Date. “B” is the amount of pending claims and claims incurred but not reported as of the Terminal Accounting Date that is reported to MARC within ninety (90) days of the Terminal Accounting Date. “C” is due, but unpaid reinsurance premium as of the Terminal Accounting Date.
(d) MARC shall provide the calculation of the final settlement amount to the Ceding Company or its rehabilitator, receiver, or liquidator within 120 days of the Terminal Accounting Date. The Ceding Company or its rehabilitator, receiver or liquidator shall have sixty (60) days from the date MARC provides the calculation and supporting data and information to review and validate it. In the event the Ceding Company or its rehabilitator, receiver or liquidator is not able to reasonably validate the calculation, then MARC or the Ceding Company or its rehabilitator, receiver or liquidator as the case may be, shall deposit the final settlement amount into escrow and proceed to cause an arbitration of the matter pursuant to Article 20 of this Agreement. Any amount so deposited shall be subject to adjustment as a result of arbitration.
(e) If the Ceding Company or its rehabilitator, receiver, or liquidator validates the final settlement amount, it shall be paid on 181st day following the Terminal Accounting Date. In the event the final settlement amount is positive, MARC shall make payment to the Ceding Company or its rehabilitator, receiver or liquidator. In the event the final settlement amount is negative, the Ceding Company or its rehabilitator, receiver or liquidator shall make payment to MARC.
(f) It is the intent of the Parties that under all circumstances any payments determined to be due to either Party under the Terminal Accounting and Settlement shall be fully and completely subject to offset as provided under the terms of this Agreement.
(g) Upon completion of the settlement, MARC will be released from all its liabilities under the Agreement effective as of the Terminal A...
Terminal Accounting and Settlement. (a) In the event that this Agreement is terminated for both in-force and new business, for any reasons, a shall occur.
(b) The “ ” shall be the earliest of: (a) of this Agreement, or (b) any .
(c) The final .
(d) Reinsurer shall provide the .
(e) If the Ceding Company or .
(f) It is the intent of the parties that .
Terminal Accounting and Settlement. (a) In connection with a termination of this Agreement, the Ceding Company shall prepare and deliver to the Reinsurer a settlement statement within fifteen (15) calendar days of the Terminal Accounting Date (the “Terminal Settlement Statement”) setting forth the terminal settlement for the Terminal Accounting Period (the “Terminal Settlement”). The Terminal Settlement shall be calculated as follows:
(i) The Ceding Company or the Reinsurer, as applicable, shall pay to the other Party the Funds Withheld Reserves Adjustment and the Quarterly Settlement Amount calculated for the Accounting Period ending on the Terminal Accounting Date in accordance with Section 5.2(c) and the Funds Withheld Reserves Adjustment shall be withdrawn from or deposited to the Funds Withheld Account, as applicable, in accordance with Section 5.2(c).
(ii) Following the Funds Withheld Reserves Adjustment pursuant to clause (i) above, the Reinsurer shall pay to the Ceding Company an amount equal to the Reinsurer’s Quota Share of the Statutory Reserves and Liabilities as of the Terminal Accounting Date (the “Terminal Reserve Amount”), and concurrently, the Ceding Company shall pay to the Reinsurer an amount equal to the Terminal Reserve Amount.
(b) All payments pursuant to the Terminal Settlement shall be made within five (5) calendar days of the Reinsurer’s receipt of the Terminal Settlement Statement. Following the Terminal Settlement, any remaining balance of the Funds Withheld Account shall be released to the Ceding Company.
(c) In the event that, subsequent to the Terminal Accounting Date, an adjustment to the Terminal Settlement is necessary, a supplemental Terminal Settlement
Terminal Accounting and Settlement. “Terminal Accounting and Settlement” means a net accounting and settlement for the termination of this Agreement.
Terminal Accounting and Settlement. If this Agreement is terminated or the quota share reduced, the Company shall prepare the quarterly settlement statement described in Section 10.01 within forty-five (45) days after the date of termination for the period beginning with the end of the most previous quarter for which settlement has been made and ending with the effective date of termination. Payment of any amounts due the Reinsurer shall be included with that statement. The Reinsurer shall pay any amounts due the Company within thirty (30) days after receiving the terminal settlement statement.