the Company or the Underwriting Manager, on account of claims and settlements involving reinsurance hereunder. The Company hereby agrees to enforce its rights to subrogation relating to any expense, if it is in the Company's economic best interest, a part of which expense was sustained by the Reinsurer, and to prosecute all claims arising out of such rights. ARTICLE XVI COMMUTATIONThe Company shall notify the Reinsurer of all claims hereunder which have not been finally settled at the end of three (3) years following the end of the Agreement Year in which they occurred. The Reinsurer may then, or at any time thereafter, request that its liability with respect to one or more of such claims be commuted. In such event the Company and the Reinsurer shall appoint a mutually acceptable Actuary or Appraiser to investigate, determine and capitalize such claim or claims. Payment by the Reinsurer of its share of the amount ascertained to be the capitalized value of such claim or claims shall constitute a complete and final release of the Reinsurer with respect to the claim or claims so capitalized. Any expenses incurred in connection with the commutation of claims, as provided herein, shall be paid proportionately by the Reinsurer. ARTICLE XVII CLAIMS FUNDA Claims Fund shall be established by the Underwriting Manager for paying claims which are subject to this Agreement and shall be accumulated and maintained by withholding 90% of the net premium and funding on a cash-call basis, as necessary. The Company and the Reinsurer shall each receive their proportionate share of the remaining 10% of the net premium. Net Premium as used herein shall mean the Gross Premium plus additions, less ceding allowance plus return premium for cancellations, reductions.The Underwriting Manager shall deposit and maintain the Claims Fund in an interest-bearing account. The account shall be set up for the benefit of the Company and the Reinsurer, while not...
