Common use of Lapses Clause in Contracts

Lapses. When a policy lapses, the corresponding Reinsured Policy will be terminated effective the same date. The Reinsurer's liability with respect to unearned premiums on the terminated Reinsured Policy is set out in Exhibit F. Unless specified otherwise in this Agreement, if a policy fully retained by the Company lapses, the Reinsured Policy or Policies on that same life will be reduced or terminated effective the same date in order for the Company to maintain its full retention. The terms under the preceding Reductions clause would apply. If the Company allows extended or reduced paid-up insurance following a lapse, the reinsurance will be appropriately amended. If the Company allows the policy to remain in force under its automatic premium loan regulations, the reinsurance will continue unchanged and in force as long as such regulations remain in effect, except as provided for otherwise in this Agreement.

Lapses. When a policy lapsesCovered Policy is terminated due to a lapse, the corresponding Reinsured Policy will cession in question shall be terminated cancelled effective as of the same date. The Reinsurer's liability with respect to unearned premiums on the terminated Reinsured Policy is set out in Exhibit F. Unless specified otherwise in this Agreement, if a policy fully retained by the Company lapses, the Reinsured Policy or Policies on that same life will be reduced or terminated effective the same date in order for the Company to maintain its full retention. The terms under the preceding Reductions clause would applyof such lapse. If the Company allows extended or reduced paid-up insurance following a lapse, the reinsurance will be appropriately amended. If the Company allows the policy Covered Policy to remain in force under its automatic premium loan regulationsprovisions, the reinsurance will shall continue unchanged and in force as long as such regulations provisions remain in effect, except as provided for otherwise in this Agreement. If the Covered Policy continues in force without payment during any days of grace pending its termination, whether such continuance is as a result of a policy contractual provision or a practice of the Company, the reinsurance shall also continue without payment of premium and shall terminate on the same date as the Company’s risk terminates.

Lapses. When a policy issued by the Company lapses, the corresponding reinsurance on the Reinsured Policy will be terminated effective the same date. The Reinsurer's liability with respect to unearned premiums on the terminated Reinsured Policy is set out in Exhibit F. Unless specified otherwise in this Agreement, if a policy fully retained by the Company lapses, the Reinsured Policy or Policies on that same life terms of Article 7.3 will be reduced or terminated effective the same date in order for the Company to maintain its full retention. The terms under the preceding Reductions clause would apply. If a policy issued by the Company allows lapses and extended or term insurance is elected under the terms of that policy, the corresponding reinsurance on the Reinsured Policy will continue on the same basis as the original Reinsured Policy until the expiry of the extended term period. If a policy issued by the Company lapses and reduced paid-up insurance following a lapseis elected under the terms of that policy, the amount of the corresponding reinsurance on the Reinsured Policy will be appropriately amendedreduced according to the terms of Article 7.3. If the Company allows the policy to remain in force under its automatic premium loan regulations, the corresponding reinsurance on the Reinsured Policy will continue unchanged and in force as long as such regulations remain in effect, except as otherwise provided for otherwise in this Agreement.

Lapses. When a policy lapses, the corresponding Reinsured Policy will be terminated effective the same date. The Reinsurer's ’s liability with respect to unearned premiums on the terminated Reinsured Policy is set out in Exhibit F. Unless specified otherwise in this Agreement, if a policy fully retained by the Company lapses, the Reinsured Policy or Policies on that same life will be reduced or terminated effective the same date in order for the Company to maintain its full retention. The terms under the preceding Reductions clause would apply. If the Company allows extended or reduced paid-up insurance following a lapse, the reinsurance will be appropriately amended. If the Company allows the policy to remain in force under its automatic premium loan regulations, the reinsurance will continue unchanged and in force as long as such regulations remain in effect, except as provided for otherwise in this Agreement.