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reinsurance business

necessarily in the name of the Reinsurer and monthly reports shall be submitted to the participants of the Claims Fund. Interest earned on the claims funds will accrue to the benefit of the Company and the Reinsurer on a proportional basis, as outlined in ARTICLE XXXII EXECUTION.Eighteen (18) months after the expiration of this agreement, an initial calculation will be done to identify the balance remaining in the Claims Fund for the said underwriting year.Thereafter, further calculations, distributions and funding calls shall be made showing the results for such period on a monthly basis until all losses which occurred with respect to this Agreement are satisfied, at which time any remaining balance in the Claims Fund will be promptly released to the Reinsurer. ARTICLE XVIII OFFSETExcept in the case of Insolvency, the Company or the Reinsurer shall have, and may exercise at any time and from time to time, the right to offset any balance or balances, whether on account of premiums or on account of losses or otherwise, due from one party to the other under the terms of this Agreement. ARTICLE XIX TERRITORYThis Agreement shall only apply to policies issued to insured's domiciled in the United States of America and the District of Columbia. ARTICLE XX OVERSIGHTSIf nonpayment of premiums, claims, or any other non-performance of duties is shown to be unintentional and the result of misunderstanding or oversight on the part of either the Company or the Reinsurer, the Agreement shall be not breached thereby. Rather, as soon as practical, there shall be adjustments in premiums payable and claims incurred during any one reinsurance period and both the Company and the Reinsurer shall be restored to the positions which they would have occupied had there been no misunderstanding or oversight during that time. ARTICLE XXI ACCESS TO RECORDSThe Reinsurer, or its duly appointed representatives, shall have the right at any reasonable time ...

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