Automatic or Facultative Amount Sample Clauses

Automatic or Facultative Amount. In the event of the reduction or termination of a policy or policies reinsured under this Agreement on an Automatic or Facultative Amount basis, the parties will reduce the reinsurance on the affected policy or policies by applying the Retention limits as defined in Schedule II which were in effect at the time the Risk was issued. The reinsurance adjustment due to lapse or reduction of previous insurance will be effective on the same date as the lapse or reduction of prior insurance. If the reinsurance amount is reinsured with multiple Reinsurers, the reinsurance will be reduced proportionately by the amount of reinsurance in each company to the total outstanding reinsurance on the Risk involved.