Common use of Automatic Coverage Clause in Contracts

Automatic Coverage. A. All automatic reinsurance required by the CEDING COMPANY on the Group Universal Life and Individual Employee Sponsored Mass Marketing policies sold by the CEDING COMPANY including the Individual Children's Plan for employees of ▇▇▇▇▇▇▇ Purina and its subsidiary companies will be assumed by GENERAL AMERICAN as described in the terms of this Agreement. B. On each risk ceded under this Agreement, the CEDING COMPANY shall retain 70% of amounts up to the first $71,500 on a life and shall cede 30% to GENERAL AMERICAN until the CEDING COMPANY has retained its full retention of $50,000 on a life. All excess coverage will then be ceded to GENERAL AMERICAN, subject to the terms of this Agreement. C. Whenever the CEDING COMPANY is already on the risk for its maximum retention under policies previously issued, the CEDING COMPANY may automatically cede additional amounts to GENERAL AMERICAN, subject to the terms of this Agreement. D. The CEDING COMPANY agrees not to automatically bind GENERAL AMERICAN when: 1. The amount to be ceded automatically exceeds $500,000. 2. The risk is a jumbo risk defined as one on which the sum of insurance already in force and the amount currently applied for in the CEDING COMPANY and in all other companies exceeds $10,000,000. E. The CEDING COMPANY may automatically cede 100% of the Accidental Death Benefit reinsurance in amounts not to exceed the amount applicable to the amount of Life insurance issued. F. The CEDING COMPANY may automatically cede 100% of Child Term Rider reinsurance to GENERAL AMERICAN when the policy to which this Rider is attached is being reinsured under this agreement. G. When the Spouse Term Rider is attached to coverage being ceded under this Agreement, the CEDING COMPANY shall retain 50% of amounts up to the first $100,000 on a life and shall cede 50% to GENERAL AMERICAN until the CEDING COMPANY has retained its full retention of $50,000 on a life. All excess coverage will then be ceded to GENERAL AMERICAN, subject to the terms of this Agreement.

Automatic Coverage. A. All automatic reinsurance required Reinsurance hereunder will be ceded automatically by the CEDING COMPANY on an excess quota-share basis. The REINSURER’S percentage of participation in each risk ceded will be shown in Schedule A. B. For policies listed in Schedule A with a register date on or after the Group Universal Life effective date of this Agreement, the CEDING COMPANY will cede and Individual Employee Sponsored Mass Marketing policies sold the REINSURER will automatically accept its share of the excess risk, in accordance with the terms and conditions of this Agreement, if all of the following conditions are met for each insured life: 1. For each risk on which reinsurance is ceded, the CEDING COMPANY will retain the appropriate retention amount, as specified in Schedule A, at the time of issue, taking into account both currently issued and previously issued policies. The CEDING COMPANY’S maximum retention limit must be greater than zero to cede business to the REINSURER. The CEDING COMPANY will include any amounts issued by affiliated companies and may include amounts assumed via reinsurance in its per life retention calculation. Affiliates is defined as a company within the AXA Financial Inc. Holding Company Group. The CEDING COMPANY may cede part of its retention to other companies within the global AXA Group. 2. The total amount of reinsurance including contractual increases, and the amount already reinsured on that life under this Agreement and all other agreements between the reinsurer and the CEDING COMPANY, does not exceed the Total Reinsurer Automatic Binding Limits set out in Schedule A. 3. The jumbo limit, as shown in Schedule A, is not exceeded. The per life jumbo limit is defined as the total face amount in-force and applied for in all companies. For coverage with contractual increases issued by the CEDING COMPANY including or its affiliates (e.g. Return of Premium Rider), the Individual Children's Plan for employees of ▇▇▇▇▇▇▇ Purina and its subsidiary companies ultimate face amount will be assumed by GENERAL AMERICAN as described used in calculating the jumbo limit Policies being replaced may be excluded from the “amount in-force” defined above, if either of the following conditions is met: 1) An existing term or permanent product is to be replaced, with or without a 1035 exchange, and CEDING COMPANY has been provided with and submitted to the insurer an absolute assignment form, and/or 2) An internal replacement situation where an equal or greater amount of inforce coverage is being issued. The CEDING COMPANY assumes full responsibility to effect the cancellation of the policy being replaced, concurrently with the issuance of the replacement policy; If the cancellation does not occur in a timely manner and this results in the new policy exceeding the jumbo limit, the REINSURER has the right (at the point when the REINSURER is made aware of the jumbo violation) to decline reinsurance on the new policy and refund all related premiums. If the REINSURER exercises this right, then the policy will not be ceded under this agreement. 4. The CEDING COMPANY has not, within three years prior to the date of application for the policy, made facultative application for reinsurance of the risk to the REINSURER or any other reinsurer unless the reason for any prior facultative submission was solely for capacity that may now be accommodated within the terms of this Agreement. B. On each risk ceded under this Agreement, the CEDING COMPANY shall retain 70% of amounts up to the first $71,500 on a life and shall cede 30% to GENERAL AMERICAN until the CEDING COMPANY has retained its full retention of $50,000 on a life. All excess coverage will then be ceded to GENERAL AMERICAN, subject to the terms of this Agreement. C. Whenever the CEDING COMPANY is already on the risk for its maximum retention under policies previously issued, the CEDING COMPANY may automatically cede additional amounts to GENERAL AMERICAN, subject to the terms of this Agreement. D. The CEDING COMPANY agrees not to automatically bind GENERAL AMERICAN when: 15. The amount to insured(s) must be ceded automatically exceeds $500,000.a permanent resident of the U.S. or Canada or a foreign national residing in a country shown in Schedule A. 26. The risk is a jumbo risk defined as one on which the sum of insurance already in force and the amount currently applied for in conventionally underwritten by the CEDING COMPANY according to the CEDING COMPANY’S standard underwriting practices, including those related to HIV testing. The CEDING COMPANY’s preferred criteria and age and amount requirements are attached in all other companies exceeds $10,000,000. E. Schedule D. Any deviation from these materials shall require prior written approval by the REINSURER. The CEDING COMPANY may automatically cede 100% will promptly notify the REINSURER in advance of any proposed material changes to its underwriting guidelines affecting business to which this Agreement applies. 7. The plan is listed in Schedule A. 8. The issuance and delivery of the Accidental Death Benefit reinsurance insurance constituted the doing of business in amounts not to exceed a jurisdiction in which the amount applicable to CEDING COMPANY was properly licensed and the amount of Life insurance issuedpolicy is authorized by the CEDING COMPANY’S corporate charter. F. C. The CEDING COMPANY may automatically cede 100% will exclude classes of Child Term Rider reinsurance to GENERAL AMERICAN when the policy to which business from this Rider is attached is being reinsured under this agreement. G. When the Spouse Term Rider is attached to coverage being ceded under this Agreement, automatic arrangement that fall outside the CEDING COMPANY shall retain 50% of amounts up to the first $100,000 on a life and shall cede 50% to GENERAL AMERICAN until the CEDING COMPANY has retained its full retention of $50,000 on a life. All excess coverage will then be ceded to GENERAL AMERICAN, subject to the terms of this AgreementCOMPANY’s policy issue criteria.

Automatic Coverage. A. All automatic reinsurance required Reinsurance hereunder will be ceded automatically by the CEDING COMPANY on an excess quota-share basis. The REINSURER’S percentage of participation in each risk ceded will be shown in Schedule A. B. For policies listed in Schedule A with an issue date on or after the Group Universal Life effective date of this Agreement, the CEDING COMPANY will cede and Individual Employee Sponsored Mass Marketing policies sold the REINSURER will automatically accept its share of the excess risk, in accordance with the terms and conditions of this Agreement, if all of the following conditions are met for each insured life: 1. For each risk on which reinsurance is ceded, the CEDING COMPANY will retain the appropriate retention amount, as specified in Schedule A, at the time of issue, taking into account both currently issued and previously issued policies. The CEDING COMPANY’S maximum retention limit must be greater than zero to cede business to the REINSURER. The CEDING COMPANY will include any amounts issued by affiliated companies and may include amounts assumed via reinsurance in its per life retention calculation. Affiliates are defined as a company within the AXA Financial Inc. Holding Company Group. The CEDING COMPANY may cede part of its retention to other companies within the global AXA Group. 2. The total amount of reinsurance including contractual increases, and the amount already reinsured on that life under this Agreement and all other agreements between the reinsurer and the CEDING COMPANY, does not exceed the Total Reinsurer Automatic Binding Limits set out in Schedule A. 3. The jumbo limit, as shown in Schedule A, is not exceeded. The per life jumbo limit is defined as the total face amount in-force and applied for in all companies. For coverage with contractual increases issued by the CEDING COMPANY including or its affiliates (e.g. Return of Premium Rider), the Individual Children's Plan for employees of ▇▇▇▇▇▇▇ Purina and its subsidiary companies ultimate face amount will be assumed by GENERAL AMERICAN as described used in calculating the jumbo limit. Policies being replaced may be excluded from the “amount in-force” defined above, if either of the following conditions is met: 1) An existing term or permanent product is to be replaced, with or without a 1035 exchange, and CEDING COMPANY has been provided with and submitted to the insurer an absolute assignment form, and/or 2) An internal replacement situation where an equal or greater amount of inforce coverage is being issued. The CEDING COMPANY assumes full responsibility to effect the cancellation of the policy being replaced, concurrently with the issuance of the replacement policy. If the cancellation does not occur in a timely manner and this results in the new policy exceeding the jumbo limit, the REINSURER has the right (at the point when the REINSURER is made aware of the jumbo violation) to decline reinsurance on the new policy and refund all related premiums. If the REINSURER exercises this right, then the policy will not be ceded under this agreement. 4. The CEDING COMPANY has not, within three years prior to the date of application for the policy, made facultative application for reinsurance of the risk to the REINSURER or any other reinsurer unless the reason for any prior facultative submission was solely for capacity that may now be accommodated within the terms of this Agreement. B. On each 5. The insured(s) must be a permanent resident of the U.S. or Canada or a foreign national residing in a country shown in Schedule A. 6. The risk ceded under this Agreement, is conventionally underwritten by the CEDING COMPANY shall retain 70% of amounts up according to the first $71,500 on a life CEDING COMPANY’S standard underwriting practices, including those related to HIV testing. The CEDING COMPANY’s preferred criteria and shall cede 30% to GENERAL AMERICAN until the CEDING COMPANY has retained its full retention of $50,000 on a life. All excess coverage will then be ceded to GENERAL AMERICAN, subject to the terms of this Agreement. C. Whenever the CEDING COMPANY is already on the risk for its maximum retention under policies previously issued, the CEDING COMPANY may automatically cede additional amounts to GENERAL AMERICAN, subject to the terms of this Agreement. age and amount requirements are attached in Schedule D. The CEDING COMPANY agrees not will promptly notify the REINSURER in advance of any proposed material changes to automatically bind GENERAL AMERICAN when:its underwriting guidelines affecting business to which this Agreement applies. 17. The amount to be ceded automatically exceeds $500,000.plan is listed in Schedule A. 28. The risk is issuance and delivery of the insurance constituted the doing of business in a jumbo risk defined as one on jurisdiction in which the sum of insurance already in force and the amount currently applied for in the CEDING COMPANY was properly licensed and in all other companies exceeds $10,000,000the policy is authorized by the CEDING COMPANY’S corporate charter. E. C. The CEDING COMPANY may automatically cede 100% will exclude classes of the Accidental Death Benefit reinsurance in amounts not to exceed the amount applicable to the amount of Life insurance issued. F. The CEDING COMPANY may automatically cede 100% of Child Term Rider reinsurance to GENERAL AMERICAN when the policy to which business from this Rider is attached is being reinsured under this agreement. G. When the Spouse Term Rider is attached to coverage being ceded under this Agreement, automatic arrangement that fall outside the CEDING COMPANY shall retain 50% of amounts up to the first $100,000 on a life and shall cede 50% to GENERAL AMERICAN until the CEDING COMPANY has retained its full retention of $50,000 on a life. All excess coverage will then be ceded to GENERAL AMERICAN, subject to the terms of this AgreementCOMPANY’s policy issue criteria.