Common use of Terminal Accounting and Settlement Clause in Contracts

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 Accounting Date, including but not limited to, the payment of any claim, benefit, or loss under the Agreement, notwithstanding the date any such claim, benefit, or loss may be incurred.

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 Accounting Date, including but not limited to, the payment of any claim, benefit, or loss under the Agreement, notwithstanding the date any such claim, benefit, or loss may be incurred.. Treaty #100165 Munich American Reassurance Company P a g e | 40