# Chubb Global Casualty

If any of the Claims Administration Expense shown in B) Premium Calculation and Adjustment is shown as deferred in II. B) Program - Payment Terms and, prior to the deferral due date, the actual claims administration expense exceeds the amount of the Claims Administration Expense Pay-In, you will pay all such additional claims administration expenses as claims are made, at the rates listed in that certain Client Agreement between the Company and the Claims Administrator. Additional Claims Administration Expense amounts you pay will reduce the amount of Claims Administration Expense that is shown as deferred.

The Rating Period means the period of time beginning on the earliest Policy effective date and ending on the latest Policy expiration date. If the Rating Period is greater than 12 months, we may make an interim adjustment to premium with loss information valued at 6 months after expiration of the Policy being adjusted. We may make an adjustment to premium with loss information valued as of any date that you are declared bankrupt or insolvent, make an assignment for the benefit of creditors, or are the subject of reorganization, receivership, or liquidation.

## 5. Reimbursable and Retrospectively Rated Losses

### A. Paid Loss Reimbursement

Reimbursable Losses are losses subject to reimbursement through the application of a deductible endorsement on the Policies or are Losses Subject to a Loss Limitation. The Company or the Claims Adjusting Service will bill the Insured for reimbursement of paid losses and ALAE on a monthly basis, subject to the Single Payment of Paid Loss and/or Allocated Loss Adjustment Expense amount as provided for in E) Collateral & Paid Loss Deposit Fund and the Collateral Agreement executed by you and us.

### B. Losses Subject to a Loss Limitation

When a workers compensation policy is subject to a Loss Limitation, as defined herein, the Loss Limitation applies as follows: (i) in the case of bodily injury as the result of disease, the Loss Limitation applies separately to each employee who sustains such bodily injury; and separately, (ii) in the case of bodily injury as the result of an accident, the Loss Limitation applies to the aggregate of all employees who sustain such bodily injury in a single accident or occurrence.

As shown in D) Reimbursable Losses above, you are responsible for reimbursement of loss on policies subject to a loss limit as follows:

- **100% borne by the Insured:** You will reimburse the Company for each loss up to the amount of the Loss Limit plus all Allocated Loss Adjustment Expense.

The Rating Period means the period of time beginning on the earliest Policy effective date and ending on the latest Policy expiration date. If the Rating Period is greater than 12 months, we may make an interim adjustment to premium with loss information valued at 6 months after expiration of the Policy being adjusted. We may make an adjustment to premium with loss information valued as of any date that you are declared bankrupt or insolvent, make an assignment for the benefit of creditors, or are the subject of reorganization, receivership, or liquidation.

## 6. Collateral & Paid Loss Deposit Fund

Subject to all of the terms and conditions of the Collateral Agreement or other security agreement between you and the Company, you are required to provide collateral or other security, in addition to any collateral or security that you may already have provided, as indicated in E) Collateral & Paid Loss Deposit Fund above. Additional amounts may be due at other times, all as provided in the Collateral Agreement.

The Paid Loss Deposit Fund and Collateral are subject to all of the terms and conditions of the Collateral Agreement executed by you and us.

Client will maintain a Claim Fund and will continue to remit additional funds, upon ESIS's written request, sufficient to maintain a minimum balance (the "Required Level") in the Claim Fund in an amount equal to the greater of: a) $425,943; or (b) the sum of all claim payments and allocated loss expenses paid by ESIS during the previous 6 months (excluding payments funded as Special Billed Amounts).

Special Billed Amount: means an individual claim payment, or individual payment of allocated loss expense, that will exceed the sum of $50,000, and the funds for which will be specially requested of the Insured by ESIS, and funded by the Insured, outside of the Claim Fund.

ESIS will make claim payments and payments for allocated loss expenses from funds deposited by the Insured for the Claim Fund, but any payment qualifying as a Special Billed Amount will be made from funds specially requested of, and provided by, the Insured for that payment. The Insured will remit funds for payments that qualify as Special Billed Amounts whenever specially requested in writing by ESIS, and immediately upon receipt of the request. ESIS will have no obligation to make any such payment until the Insured has remitted in advance the full amount of the funds specially requested by ESIS.

The Insured grants ESIS the right to adjust either or both elements of the Required Level whenever (a) the Required Level is, in
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This text is extracted from the provided image and formatted into markdown. It covers various aspects of claims administration, loss limitations, and the requirements related to the Collateral & Paid Loss Deposit Fund.