6.01
GUARANTY FUND ASSESSMENTS.
THE REINSURER SHALL
REIMBURSE THE CEDING COMPANY FOR THE QUOTA SHARE OF ANY GUARANTY FUND
ASSESSMENTS PAID BY THE CEDING COMPANY WITH RESPECT TO ANY REINSURED POLICY.
TO
THE EXTENT THERE IS ANY RECOVERY OF GUARANTY FUND ASSESSMENTS PAID BY THE
REINSURER, THE CEDING COMPANY SHALL PROMPTLY PAY THE QUOTA SHARE OF SUCH
RECOVERY TO THE REINSURER.
9
ARTICLE VII
CLAIMS
SECTION 7.01
CLAIMS PAYMENT.
SUBJECT TO SECTION 7.02, THE REINSURER
SHALL PAY TO THE CEDING COMPANY THE QUOTA SHARE OF THE CLAIMS PAID BY THE CEDING
COMPANY IN ACCORDANCE WITH SECTION 8.03.
"CLAIMS" WILL CONSIST OF CLAIMS, NET
OF APPLICABLE SURRENDER CHARGES AND MARKET VALUE ADJUSTMENTS, IF ANY, FOR
BENEFITS RELATED TO PARTIAL SURRENDERS, FULL SURRENDERS, DEATH CLAIMS, ANNUITY
PAYOUTS UNDER SUPPLEMENTARY CONTRACTS AND OTHER CONTRACTUAL BENEFITS UNDER THE
REINSURED POLICIES.
CLAIMS SHALL NOT INCLUDE ANNUITIZATIONS UNDER THE REINSURED
POLICIES, ANY EXCLUDED LIABILITIES OR ANY LIABILITIES OTHER THAN THE REINSURED
LIABILITIES.
SECTION 7.02
CLAIMS SETTLEMENT.
(A)
THE CEDING COMPANY IS RESPONSIBLE FOR THE
SETTLEMENT OF CLAIMS IN ACCORDANCE WITH ARTICLE X, APPLICABLE LAW AND POLICY
TERMS.
(B)
THE CEDING COMPANY WILL NOTIFY THE REINSURER
PROMPTLY OF ITS INTENTION TO INVESTIGATE, CONTEST, COMPROMISE OR LITIGATE ANY
CLAIM INVOLVING A REINSURED POLICY (ANY SUCH CLAIM, A "CONTESTED CLAIM").
THE
CEDING COMPANY WILL PROVIDE THE REINSURER ALL RELEVANT INFORMATION AND
DOCUMENTS, AS SUCH BECOME AVAILABLE, PERTAINING TO CONTESTED CLAIMS AND WILL
PROMPTLY REPORT ANY DEVELOPMENTS DURING THE REINSURER'S REVIEW.
(C)
SUBJECT TO SECTION 2.01(F) RELATING TO
EXCLUDED LIABILITIES, THE REINSURER WILL REIMBURSE THE CEDING COMPANY FOR ITS
QUOTA SHARE OF THE REASONABLE EXPENSES OF ANY CONTEST OR COMPROMISE OF A CLAIM,
AND WILL SHARE IN THE REDUCTION OF LIABILITY IN THE SAME PROPORTION.
IF THE
REINSURER SO ELECTS, IT MAY DISCHARGE ITS LIABILITY WITH RESPECT TO ANY
CONTESTED CLAIM BY PAYING TO THE CEDING COMPANY ITS QUOTA SHARE OF SUCH CLAIM AS
ORIGINALLY PRESENTED TO THE CEDING COMPANY AND, THEREAFTER, WILL HAVE NO
OBLIGATION TO THE CEDING COMPANY FOR REIMBURSEMENT OF EXPENSES RELATED TO THE
CONTEST OF SUCH CLAIM AND WILL NOT SHARE IN ANY SUBSEQUENT REDUCTION IN
LIABILITY RELATING TO SUCH CLAIM.
(D)
IF THE REINSURER DOES NOT ELECT TO DISCHARGE
ITS LIABILITY WITH RESPECT TO ANY CONTESTED CLAIM AS SET FORTH IN
SECTION 7.02(C), THE CEDING COMPANY WILL PROMPTLY ADVISE THE REINSURER OF ALL
SIGNIFICANT DEVELOPMENTS, INCLUDING NOTICE OF LEGAL PROCEEDINGS (INCLUDING, BUT
NOT LIMITED TO, CONSUMER COMPLAINTS OR ACTIONS BY GOVERNMENTAL AUTHORITIES)
INITIATED IN CONNECTION WITH SUCH CONTESTED CLAIM.
SECTION 7.03
RECOVERIES.
SUBJECT TO SECTION 7.02(C), IF THE CEDING
COMPANY OBTAINS ANY RECOVERIES IN RESPECT OF A CLAIM PAID BY IT IN ACCORDANCE
WITH THE TERMS OF ANY REINSURED POLICY, THE CEDING COMPANY SHALL PROMPTLY PAY TO
THE REINSURER THE QUOTA SHARE OF SUCH RECOVERIES.
10
ARTICLE VIII
REPORTING AND SETTLEMENTS
SECTION 8.01
CEDING COMPANY REPORTING.
(A)
WITHIN EIGHT (8) BUSINESS DAYS FOLLOWING
THE END OF EACH CALENDAR MONTH OTHER THAN A CALENDAR MONTH FOLLOWING WHICH A
QUARTERLY ACCOUNTING REPORT WILL BE DELIVERED