6.01 It is common for a proportionate facultative reinsurance to include a follow the settlements clause. Typically, a standard clause would provide, “The Reinsurer agrees to follow the settlements of the Reinsured.” Some clauses may add to this wording “… whether under strict policy conditions or by way of compromise, including settlements involving disputed interpretations of policy terms and/or coverage. Notwithstanding the foregoing, the Reinsurer will not be obligated to indemnify the Reinsured for ex-gratia payments.”