Common use of Commission Allowance Clause in Contracts

Commission Allowance. The Reinsurer shall pay to the Company a commission allowance equal to the following: a commission allowance on first year premiums at the rate of 35% on Plan OG2 (5 Pay Life), 40% on Plan OG3(10 Pay Life), 45% on Plan OG4 (15 Pay Life), 50% on Plans 801 (Whole Life), 810 (Whole Life), 821 (10 Year Term) and OG5 (20 Pay Life), 55% on Plan OG1 (Whole Life), and 60% on Plan 820 (Whole Life); a commission allowance on renewal premiums for new ordinary business (1997 issues) at the rate of 7% of premiums for policy years 2 through 10 and 3% of premiums thereafter; and a commission allowance on renewal premiums for ordinary and industrial (pre-1997 issues) at the rate of 10% of premiums for policy years 2 and 3, 4% of premiums for policy year 4, 3% of premiums for policy years 5 through 15 inclusive, 2% of premiums for policy years 16 through 20 inclusive.