HAVING ENTERED INTO THE REINSURANCE ARRANGEMENTS
SPECIFIED IN SCHEDULE C.
ARTICLE III
ADMINISTRATION: GENERAL PROVISIONS
3.1
CONTRACT ADMINISTRATION.
THE COMPANY SHALL
PROCURE THAT THE RELEVANT RISKS ARE ADMINISTERED IN ACCORDANCE WITH THEIR TERMS
AND THE TERMS OF ANY APPLICABLE DISTRIBUTOR AGREEMENT, INCLUDING, BUT NOT
LIMITED TO, THE COLLECTION OF PREMIUMS AND OTHER AMOUNTS DUE FROM POLICYHOLDERS,
THE PAYMENT OF ALL RELEVANT LIABILITIES AND THE ADMINISTRATION OF CLAIMS AND
DISBURSEMENTS.
ALL BENEFITS UNDER THE CONTRACTS AND POLICIES CONSTITUTING THE
RELEVANT RISKS PAID BY THE COMPANY SHALL BE BINDING UPON THE REINSURER,
PROVIDED, HOWEVER, THAT SUCH PAYMENTS ARE WITHIN THE TERMS, CONDITIONS AND
LIMITATIONS OF THE CONTRACTS AND POLICIES CONSTITUTING THE RELEVANT RISKS.
THE
COMPANY SHALL PROCURE THAT THE RELEVANT RISKS ARE ADMINISTERED IN GOOD FAITH AND
WITH THE CARE, SKILL, PRUDENCE, AND DILIGENCE OF A PERSON EXPERIENCED IN
ADMINISTERING PAYMENT PROTECTION INSURANCE BUSINESS, PERSONAL ACCIDENT INSURANCE
BUSINESS AND TRAVEL INSURANCE BUSINESS.
THE COMPANY SHALL PROCURE THAT THE
RELEVANT RISKS ARE ADMINISTERED IN COMPLIANCE WITH APPLICABLE LAW AND THE
CURRENT SERVICE PROVIDER'S ADMINISTRATIVE PERFORMANCE STANDARDS IN EFFECT ON THE
DATE HEREOF, WITH SUCH REVISIONS TO SUCH STANDARDS AS ARE NO LESS FAVOURABLE TO
THE REINSURER THAN SUCH STANDARDS.
NOTWITHSTANDING THE FOREGOING, THE PARTIES
MAY, FROM TIME TO TIME, MUTUALLY DEVELOP SPECIFIC AND/OR DIFFERENT STANDARDS FOR
THE ADMINISTRATION OF THE RELEVANT RISKS.
3.2
SUB-CONTRACTING OF CONTRACT ADMINISTRATION.
THE COMPANY MAY SUBCONTRACT THE PERFORMANCE OF ANY SERVICE OR SERVICES WHICH THE
COMPANY IS REQUIRED TO PROCURE IN CONNECTION WITH THE ADMINISTRATION OF THE
RELEVANT RISKS TO (I) AN AFFILIATE, (II) A SERVICE
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PROVIDER UTILISED BY THE COMPANY WITH RESPECT TO THE RELEVANT RISKS OR ITS OTHER
BUSINESS AS OF THE DATE HEREOF, (III) ANY PERSON TO WHOM SUCH SUBCONTRACTING IS
REQUIRED TO BE EFFECTED UNDER THE TERMS OF ANY DISTRIBUTOR AGREEMENT OR (IV)
WITH THE PRIOR WRITTEN CONSENT OF THE REINSURER, ANY OTHER PERSON, SUCH CONSENT
NOT TO BE UNREASONABLY WITHHELD; PROVIDED, THAT NO SUCH SUBCONTRACTING SHALL
RELIEVE THE COMPANY FROM ANY OF ITS OBLIGATIONS OR LIABILITIES HEREUNDER, AND
THE COMPANY SHALL REMAIN RESPONSIBLE FOR ALL OBLIGATIONS OR LIABILITIES OF SUCH
SUBCONTRACTOR WITH REGARD TO THE PROVISION OF SUCH ADVICE OR SERVICES AS IF
PROVIDED BY THE COMPANY.
3.3
CEDED REINSURANCE AGREEMENTS AND DISTRIBUTOR
AGREEMENTS.
THE COMPANY SHALL MANAGE AND ADMINISTER THE CEDED REINSURANCE
AGREEMENTS AND THE DISTRIBUTOR AGREEMENTS, INCLUDING:-
(i)
providing all reports and notices
required with regard to the Ceded Reinsurance Agreements and the Distributor
Agreements to the reinsurers or other third parties, as applicable, within the
time required by the applicable Ceded Reinsurance Agreement or Distributor
Agreements; and
(ii)
doing all other things necessary to comply
with the terms and conditions of the Ceded Reinsurance Agreements and the
Distributor Agreements.
Without limiting the foregoing, the Company shall:-
(i)
promptly pay when due all reinsurance
premiums due to reinsurers under the Ceded Reinsurance Agreements and use all
commercially reasonable efforts to collect from such reinsurers all amounts due
under Ceded Reinsurance; and
(ii)
promptly pay when due all profit sharing,