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1 commercial excess insurance or reinsurance, purchased for <br /> coverage within the mandatory limits provided by the Authority, <br /> 3 fails to pay such Settlement or is insufficient for such <br /> Settlement; provided that the Authority shall have no <br /> 5 obligation to pay Settlements which are covered by excess <br /> insurance purchased by the Authority for a Participant on an <br /> 7 optional basis in excess of the mandatory limits provided by <br /> the Authority. In an event of dispute between ~he Authority or <br /> 9 any Participant and any commercial excess insurer or reinsurer <br /> as to payment of any Settlement, the failure in good faith to <br />11 pay such Settlement shall not result in abatement of any <br /> Participant's obligation to make any Premium payments. <br />13 <br /> <br /> 15 <br /> <br /> 17 <br /> <br /> 19 <br /> <br /> 21 <br /> <br /> 23 <br /> <br /> 25 <br /> <br /> 27 <br /> <br /> 29 <br /> <br /> 31 <br /> <br /> 33 <br /> <br /> 35 <br /> <br /> 37 <br /> <br /> 39 <br /> <br /> 41 <br /> <br /> 43 <br /> <br /> 45 <br /> <br />.47 <br /> <br /> 49 <br /> <br /> In a Coverage Period for which the Authority has purchased <br />commercial insurance or reinsurance on behalf of each <br />Participant, each such Participan~ shall be obligated to pay <br />its Pure Premium Proportion of the costs of such insurance in <br />lieu of all or a portion of Pure Premium, in addition to <br />Administrative Premium, Basic Premium, Supplemental Basic <br />Premium and Pure Premium Adjustments. In subsequent Coverage <br />Periods no Participant shall have any obligation to pay and no <br />right to receive Pure Premium Adjustments with respect to any <br />Coverage for which The AuThority has purchased commercial <br />excess insurance or reinsurance on behalf of such Participant, <br />except such obligations or rights which may arise under such <br />commercial excess insurance or reinsurance; provided, however, <br />that, if such coverage is within the mandatory limits provided <br />by the Authority, in the event that a commercial insurer <br />providing excess insurance or reinsurance fails to pay a <br />Settlement within the scope of such excess insurance or <br />reinsurance coverage, the Participants shall be obligated to <br />pay Pure Premium Adjustments with respect to such excess <br />insurance or reinsurance coverage. <br /> <br /> SECTION 3.6 Case Reserves and Loss Reserves. On or prior <br />to February 1 of each year, commencing February 1, 1989, the <br />Authority shall retain a Qualified Claims Auditor for the <br />purpose of submitting an annual report on or prior to such date <br />to the Authority and the Trustee setting forth (a) the amount <br />of Case Reserves necessary to be established with respect to <br />each Claim arising during the preceding full Coverage Period <br />and a breakdown of the amount of Case Reserves applicable to <br />each Risk Sharing Pool, and (b) any adjustments (whether upward <br />or downward) necessary to be made in the amount of each Case <br />Reserve previously established pursuant to this Section. In <br />determining the amount of Case Reserves necessary to be <br />established or adjusted as described above, the Qualified <br />Claims Auditor shall consider such facts and circumstances <br />occurring during the period covered by such report as it, in <br />its independent judg/nent, deems necessary in accordance with <br /> <br /> 17 <br />2658002/2 <br /> <br /> <br />