settlement of claims including interest upon judgments.
"This reinsurance is excess and not pro rata or contributing reinsurance, and applies only to the liability of the REINSUREDin excess of the amounts first herein named, which amounts are retained at the risk of the REINSURED as a first liability,before loss shall accrue to the CORPORATION hereunder.
"This reinsurance is subject to the following' conditions: . ..
"2. FORMS. The REINSURED shall file with the CORPORATION *Page 657 a specimen copy of each policy-form and endorsement-form used by the REINSURED to cover owner's liability on automobiles; and thereupon each reinsurance hereunder shall be subject to all ofthe general and special terms and conditions of such policies orendorsements.
"3. REINSURANCE PREMIUMS. The REINSURED shall pay to the CORPORATION as premium for this reinsurance, 55% of the excess premium charged by the REINSURED for all limits in excess of $5000/10,000 reinsured hereunder. . . .
". . . Credit will be allowed for unearned reinsurance premiums on account of cancellation . . .
"The CORPORATION shall have the right to participate jointlywith the REINSURED in investigation, adjustment and settlement ofclaims upon which, in the judgment of the officers of the CORPORATION, it is, or might become interested or exposed, and the REINSURED agrees to cooperate with the CORPORATION to the end that settlement may be made in each case where legal liability apparently exists, with a minimum of expense to the CORPORATION. . . . .
"The CORPORATION will make prompt settlement of its losseshereunder as soon as the same are definitely and finallydetermined.
"7. PERIOD OF LIABILITY. Liability of the CORPORATION uponeach risk shall commence simultaneously with that of theREINSURED, provided cessions are reported to the CORPORATION as hereinbefore provided, and shall continue concurrently with theliability of the REINSURED and cease when the liability of the REINSURED terminates under the respective policy. . . .
". . . It is understood and agreed that the business of the REINSURED in which the CORPORATION has a reinsurance interest hereunder, is the sole and absolute property of the REINSURED, and the CORPORATION agrees not to use any information so acquired for any purpose other than that contemplated herein. . . .
"EFFECTIVE DATE AND TERMINATION. This agreement shall become effective as of 12:01 A.M. on the 1st day of August, 1926, and shall continue in effect until cancelled by mutual consent or by either party hereto, by service upon the other party of thirty days' notice in writing, stating upon what future date cancellation shall become effective. The CORPORATION shall participate in all the business of the REINSURED coming within the scope of this agreement during said thirty day period, . . .
"The CORPORATION expressly reserves the right to terminate itsreinsurance upon any specific risk previously accepted, upon twenty days' notice to the REINSURED, where the records or information or experience upon such risk show the same to be unsatisfactory or the hazard disproportionately great. . . . *Page 658
"Any termination of this