copies of such pleadings and reports of
investigation as may be requested by the CORPORATION. Notwithstanding the
REINSURED'S reasonable estimate of value, any claim involving one or more of the
following injuries shall be reported to the CORPORATION:
(a)
fatality;
(b)
paraplegia or more extensive paralysis;
(c)
severe brain injury or brain damage
prognosis;
(d)
severe burns;
(e)
amputations of one or more limbs;
(f)
loss of sight or hearing to a substantial
degree;
(g)
back injury where surgery has been performed
or is recommended by the treating doctor;
(h)
severe laceration cases involving the face,
arms or legs and leaving serious cosmetic deformity;
(i)
a claim for psychological injury for
which there appears to be a reasonable basis;
(j)
multiple fractures or severe internal
injuries with high residual permanent impairment;
(k)
any injury where there is, or appears
probable, an alleged loss of earnings for one year or more.
The REINSURED shall also notify the CORPORATION of any occurrence for which the
REINSURED has created a loss reserve equal to or greater than one half of the
REINSURED'S retention hereunder, or any occurrence giving rise to a bad faith
claim covered by Article VI (c) above. The REINSURED shall advise the
CORPORATION of the estimated amount of loss and claim expenses in connection
with each such occurrence and of any subsequent changes.
The REINSURED agrees that it will investigate and will settle or defend all
claims arising under policies with respect to which reinsurance is afforded by
this agreement, and that it will give prompt notice to the CORPORATION of any
claim in excess of the REINSURED'S application retention and prompt notice of
any other event or development which would involve the CORPORATION hereunder,
and will forward promptly to the CORPORATION copies of such pleadings and
reports of investigation as may be requested by the CORPORATION.
The CORPORATION may, at its own expense, participate with the REINSURED in the
investigation, adjustment or defense of claims to which, in the judgment of the
CORPORATION, it is or might become exposed.
Should the right of subrogation or reimbursement arise out of a loss, a part of
which was sustained by the CORPORATION hereunder, the REINSURED agrees to
enforce such right and to prosecute the claim arising therefrom.
The CORPORATION shall reimburse the REINSURED or its legal representative
promptly for loss against which indemnity is herein provided, upon receipt in
the home office of the CORPORATION of satisfactory evidence of payment of such
loss.
The REINSURED shall furnish to the CORPORATION prior to the 20th day of
December of each year a report and statement showing the estimated value of each
outstanding claim subject to excess reinsurance hereunder.
ARTICLE XII
LIABILITY OF THE CORPORATION.
The liability of the CORPORATION shall follow
that of the REINSURED in every case and shall be subject in all respects to all
the general and special stipulations, clauses, waivers and modifications of the
REINSURED'S policy or policies and any endorsements thereon; provided however,
that nothing herein shall