Article 6.2.2

(Remedies for breach of an agreement on net retention)

(1)  In case of a breach of an agreement on net retention by the reinsured, the following remedies apply

(a)  Proportional reinsurance: the reinsurer may reduce the risk reinsured under the contract of reinsurance by the same percentage by which the net retention has been reduced and may adjust commission terms to reflect the change in the reinsured risk taking into account risk-related and market-related factors.

(b)  Non-proportional reinsurance: the reinsurer may increase the attachment point by the amount that the net retention has been decreased.

(2)  Except for the remedy provided for in Article 3.1(1)(a), the remedies provided for in Article 3.1 apply in addition to Article 6.2.2(1).