Common use of INTERNAL REPLACEMENTS Clause in Contracts

INTERNAL REPLACEMENTS. Should the Ceding Company, its affiliates, --------------------- successors or assigns, initiate a "Program of Internal Replacement" that includes any of the Policies reinsured hereunder, the Ceding Company shall immediately notify the Reinsurer. All Policies that were internally replaced shall be treated as recaptured rather than surrendered. Such recapture shall be subject to the payment of a Terminal Accounting and Settlement by the Ceding Company to the Reinsurer as described in Article VIII. For purposes of this Agreement, the term "Program of Internal Replacement" means any effort by the Ceding Company, its affiliates, successors or assigns generally to solicit replacements of Policies by which a Policy or any portion of the cash value of a Policy is exchanged for another policy or contract that is not reinsured under this Agreement; provided, however, that providing unsolicited replacements at the request of a Policy owner shall not be considered a Program of Internal Replacement.

INTERNAL REPLACEMENTS. Should the Ceding Company, its affiliates, --------------------- successors or assigns, initiate a "“Program of Internal Replacement" ” that includes any of the Policies reinsured hereunder, the Ceding Company shall immediately notify the Reinsurer. All Policies that were internally replaced shall be treated as recaptured rather than surrendered. Such recapture shall be subject to the payment of a Terminal Accounting and Settlement by the Ceding Company to the Reinsurer as described in Article VIII. For purposes of this Agreement, the term "“Program of Internal Replacement" ” means any effort by the Ceding Company, its affiliates, successors or assigns generally to solicit replacements of Policies by which a Policy or any portion of the cash value of a Policy is exchanged for another policy or contract that is not reinsured under this Agreement; provided, however, that providing unsolicited replacements at the request of a Policy owner shall not be considered a Program of Internal Replacement.