CX 99 02 Condition – Litigation Funding Mutual Disclosure

“If we and an insured do not agree whether or to what extent a claim or "suit" is covered by this Policy”

CX 99 02 01 26

What triggers a disclosure demand. The condition is added to the Commercial Excess Liability Coverage Part and applies only during a coverage disagreement between the insurer and an insured. Either side can start it with a written demand; a claimant suing the insured has no duty under it.

“each party must disclose in writing within 30 days whether they or their attorney(s) have executed any "third-party litigation funding agreement(s)"”

CX 99 02 01 26

What each side must say within 30 days. The answer is due whether or not a funding agreement exists, and it covers agreements signed by the party's attorneys as well as by the party itself.

“are required to approve of or be consulted on litigation and/or settlement decisions”

CX 99 02 01 26

What a funded party must hand over. A party with a funding agreement must provide a copy of it, name the individuals or entities that entered into it, state whether they can approve or must be consulted on litigation or settlement decisions, and describe their financial interest.

“Each party must provide to the other a copy of any update of their written disclosure within 30 days of”

CX 99 02 01 26

When updates are due. After the first disclosure, each side owes the other an update within 30 days of any change in the disclosed information, or of signing a new funding agreement after the demand.

“contingent upon the outcome of the specified legal matter or portfolio of specified legal matters”

CX 99 02 01 26

What counts as a litigation funding agreement. The defined term reaches any funding provided to a party or its attorneys for a matter, or a portfolio of matters, where repayment or other consideration depends on the outcome. Funding that must be repaid regardless of the result is outside the definition.