Common use of Facultative Coverage Clause in Contracts

Facultative Coverage. Whenever Lutheran Brotherhood requires reinsurance for any risk which otherwise qualifies for automatic coverage under this Agreement, but which Lutheran Brotherhood prefers not to cede on that basis, Lutheran Brotherhood may submit an application to Minnesota Mutual for such reinsurance on a facultative basis at the same time that Lutheran Brotherhood applies to any other reinsurer for such reinsurance on a facultative basis. Whenever Lutheran Brotherhood desires reinsurance for any risk which surpasses the acceptance limit or does not meet any of the other conditions for automatic coverage under this Agreement Lutheran Brotherhood may, at its option and subject to the restriction hereafter specified in this section and any further restrictions or conditions that may be stipulated in the relevant Exhibit, submit an application to Minnesota Mutual for such reinsurance on a facultative basis. Minnesota Mutual shall consider, as detailed in Article II, acceptance of the risks indicated for reinsurance on all such applications, regardless of the risk amounts, if any, that Lutheran Brotherhood proposes to retain.