Common use of Guaranteed Rates Clause in Contracts

Guaranteed Rates. Although the Reinsurer anticipates continuing to accept Reinsurance Premium at the current rate level, the Reinsurer reserves the right to increase the YRT Reinsurance Rate Factors (described in Exhibit I) for any Plan of Insurance but in no event will the increased annual YRT Reinsurance Premium Rate, as defined in Exhibit I, for standard risks exceed the applicable annual rates in the Valuation Mortality Table specified in Schedule A for that Plan of Insurance. Such increased rates shall apply for policy years beginning during the fifth calendar year after the calendar year during which the Ceding Company receives written notice of the rate increase. The Reinsurer and the Ceding Company shall then endeavor in good faith to mutually agree on the amount of rate increase that shall apply to that specific Plan of Insurance. If the Parties cannot agree on the amount of such rate increase for a Plan of Insurance, then the Ceding Company reserves the right to recapture the risks associated with such Plans of Insurance without fee, as of the effective date of the rate increase. Written notice of such recapture shall be provided to the Reinsurer no later than thirty (30) days following the effective date of the rate increase.