Common use of Changes in Retention Clause in Contracts

Changes in Retention. A. The Ceding Company may increase its limit of retention and may elect, subject to the provisions of this Article, to continue the reinsurance inforce under this Agreement without change, or to reduce all eligible reinsurance inforce under this Agreement as set forth below. The Ceding Company will provide the Reinsurer with written notice of the new retention limit at least 90 days prior to the effective date. The increased limit of retention shall be effective with respect to reinsurance which is placed in effect on or after the effective date of the increase subsequent to the Ceding Company providing written notice to the Reinsurer of such increase and of its election to either continue or reduce reinsurance on inforce business. B. No business will be eligible for reduction under this Article unless the Ceding Company gives the Reinsurer an irrevocable written notice of its intention to and it kept its maximum retention as set forth in the retention schedule in effect at the time the insurance was issued. The amounts d shall be sufficient to increase the Ceding Company’s retention to the new limits. If there are other reinsurers, the reduction on each risk shall be divided according to each reinsurer’s portion of the total reinsurance on the risk. In applying its increased retention limit to reinsured policies, the age, mortality rating at the time of issue will be used to determine the amount of the Ceding Company’s increased retention. The amount of reinsurance eligible for will be the difference between the amount originally retained and the amount the Ceding Company would have retained on the same quota share basis had the new retention been in effect at the time of issue. If the reinsurance is reduced on any risk, similar reductions shall be made on all risks eligible for . No reserves for the d business will be paid to the Ceding Company by the Reinsurer. . . The retention limits of the Ceding Company as of the effective date of this Agreement are shown in Schedule I – Retention Limits.

Changes in Retention. A. The Ceding Company may increase its limit of retention and may elect, subject to the provisions of this Article, to continue the reinsurance inforce under this Agreement without change, or to reduce all eligible reinsurance inforce under this Agreement as set forth below. The Ceding Company will provide the Reinsurer with written notice of the new retention limit at least 90 days prior to the effective date. The increased limit of retention shall be effective with respect to reinsurance which is placed in effect on or after the effective date of the increase subsequent to the Ceding Company providing written notice to the Reinsurer of such increase and of its election to either continue or reduce reinsurance on inforce business.(Continued) B. No business will be eligible for reduction under this Article unless the Ceding Company gives the Reinsurer an irrevocable written notice of its intention to and it kept its maximum retention as set forth in the retention schedule in effect at the time the insurance was issued. The amounts d recaptured shall be sufficient to increase the Ceding Company’s retention to the new limits. If there are other reinsurers, the reduction on each risk shall be divided according to each reinsurer’s portion of the total reinsurance on the risk. In applying its increased retention limit to reinsured policies, the age, mortality rating at the time of issue will be used to determine the amount of the Ceding Company’s increased retention. The amount of reinsurance eligible for will be the difference between the amount originally retained and the amount the Ceding Company would have retained on the same quota share basis had the new retention been in effect at the time of issue. If the reinsurance is reduced on any risk, similar reductions shall be made on all risks eligible for . No reserves The effective date of the reduction in reinsurance on a policy eligible for such reduction shall be the latter of the first policy anniversary following the notice to recapture and the th policy anniversary. If at time of , eligible business was mistakenly not and a death occurs on that overlooked eligible for date, the Reinsurer will not be liable for the d death claim nor will the Ceding Company be responsible for premiums paid after the date on said business. The parties’ obligations for any business will be paid limited to those relating to events or circumstances arising or occurring before the Ceding Company by the Reinsurer. . date. The retention limits of the Ceding Company as of the effective date of this Agreement are shown in Schedule I H – Retention Limits.