EXCHANGES OR CONVERSIONS Sample Clauses
The "Exchanges or Conversions" clause defines the terms under which one asset, security, or instrument can be exchanged for or converted into another. Typically, this clause outlines the specific conditions, timing, and procedures for such exchanges or conversions, such as the conversion of preferred shares into common stock or the exchange of bonds for equity. Its core practical function is to provide clear rules and mechanisms for transforming one form of interest into another, thereby ensuring predictability and reducing disputes over how and when such changes can occur.
EXCHANGES OR CONVERSIONS. An exchange or conversion is a new policy replacing a policy issued earlier by the Ceding Company or a change in an existing policy that is issued or made either:
1. Under the terms of the original policy, or,
2. Without the same new underwriting information the Ceding Company would obtain in the absence of the original policy,
3. Without a suicide exclusion period, or contestable period of equal duration, to those contained in new issues by the Ceding Company, or
EXCHANGES OR CONVERSIONS. Exchanges or Conversions from a policy reinsured under this Agreement to a new policy -- either to a plan insurance covered under this Agreement or to a plan of insurance not covered under this Agreement - will continue to be reinsured under this Agreement; the amount of reinsurance under this Agreement will not exceed the amount of the reinsurance on the original policy with the Reinsurer immediately prior to the exchange conversion. Premiums will continue on a point-in-scale basis under the original terms. Note: An original date policy Reissue will not be treated as a continuation of the original policy. It will be treated as a new policy and the original policy will be treated as Not Taken. All premiums previously paid to the Reinsurer for the original policy will be refunded to the Ceding Company. All premiums will be due on the new policy from the original issue date of the old policy.
EXCHANGES OR CONVERSIONS. An exchange or conversion is a new policy replacing a policy issued earlier by the Ceding Company or a change in an existing policy that is issued or made either:
EXCHANGES OR CONVERSIONS. See Schedule IV, Reinsurance Premiums
EXCHANGES OR CONVERSIONS. An exchange or conversion is a new policy replacing a policy issued earlier by the Ceding Company or a change in an existing policy that is issued or made either:
1. Under the terms of the original policy, or,
2. Without the same new underwriting information the Ceding Company would obtain in the absence of the original policy,
3. Without a suicide exclusion period, or contestable period of equal duration, to those contained in new issues by the Ceding Company, or
4. Without the payment of the same allowances in the first year, that the Ceding Company would have paid in the absence of the original policy. Exchanges or Conversions will be reinsured under this Agreement only if the original policy was reinsured with the Reinsurer; the amount of reinsurance under this Agreement will not exceed the amount of the reinsurance on the original policy with the Reinsurer immediately prior to the exchange or conversion. Premiums will be as shown in Schedule I. Note: An original date policy Reissue will not be treated as a continuation of the original policy. It will be treated as a new policy and the original policy will be treated as Not Taken. All premiums previously paid to the Reinsurer for the original policy will be refunded to the Ceding Company. All premiums will be due on the new policy from the original issue date of the old policy. Note: Re-Entry, e .g. wholesale replacement and similar programs are not covered under this Article. If Re-Entry is applicable to this treaty, then it will be covered in Schedule I.