Common use of Automatic Cessions Clause in Contracts

Automatic Cessions. Whenever the plan of insurance on any Covered Policy is being changed, including internal replacements, and the Company is not obtaining evidence in accordance with the Company’s new business underwriting rules, or as agreed otherwise by the Company and the Reinsurer, the reinsurance shall remain in effect with the Reinsurer on the following basis: (i) the reinsurance rates and the durations shall be based on those applicable to the original cession; and (ii) the reinsurance amount at risk shall be determined according to the terms of this Agreement but in no event shall be more than the original cession at the time of the change in plan; and (iii) the suicide and contestability period of the policy will be measured from the issue date of the original cession. Whenever the plan of insurance on a Covered Policy is being changed, including internal replacements, and underwriting in accordance with the Company’s new business underwriting rules is required, the policy will be considered new business and will be reinsured under the current pool open to new business, using first year rates based on attained age. The suicide and contestability period of such a policy will be measured from the current issue date, except in jurisdictions that require otherwise. Internal replacements, as described above, may occur between the Company and any of its affiliate companies and to plans not listed in Exhibit A.

Automatic Cessions. Whenever the plan of insurance on any Covered Policy is being changed, including internal replacements, and the Company is not obtaining evidence in accordance with the Company’s new business underwriting rules, or as agreed otherwise by the Company and the Reinsurer, the reinsurance shall remain in effect with the Reinsurer on the following basis: (i) the reinsurance rates and the durations shall be based on those applicable to the original cession; and (ii) the reinsurance amount at risk shall be determined according to the terms of this Agreement but in no event shall be more than the original cession at the time of the change in plan; and (iii) the suicide and contestability period of the policy will be measured from the issue date of the original cession. Whenever the plan of insurance on a Covered Policy is being changed, including internal replacements, and underwriting in accordance with the Company’s new business underwriting rules is required, the policy will be considered new business and will be reinsured under the current pool open to new business, using first year rates based on attained age. The suicide and contestability period of such a policy will be measured from the current issue date, except in jurisdictions that require otherwise. Internal replacements, as described above, may occur between the Company and any of its affiliate companies and to plans not listed in Exhibit A..