Common use of Method of Recapture Clause in Contracts

Method of Recapture. You will give us written notice of your intention to recapture within ninety days of the effective date of your retention or pool percentage increase. If you elect to recapture at a later date, you will give us additional written notice before you begin the recapture. When you have given us written notice of your intent to recapture, and the date that the recapture will begin: a) All eligible policies will be recaptured; b) Reinsurance will be reduced on the next anniversary date of each eligible policy; c) Reinsurance on each eligible policy will be reduced by an amount that will increase your retention or pool percentage to the current limit set forth in Exhibit A. If you increase your retention or the stated pool percentage shown in Exhibit A, the percentage of the risk reinsured will reduce proportionately. If reinsurance was placed with more than one reinsurer, each reinsurer's percentage will be reduced in the same proportion that each reinsurer's original percentage bore to the total percentage reinsured. d) If there is reinsurance in force in other companies on any one insured life, the reduction of the reinsurance in force under this Agreement will be in the same proportion that the amount reinsured with us bears to the total reinsurance on the life; e) If at the time of recapture the insured is disabled and premiums are being waived under any type of disability Benefit Rider, only the life benefit will be recaptured. The reinsured portion of the Disability Benefit rider will remain in force until the policy is returned to premium-paying status, at which time it will be eligible for recapture. If you omit or overlook the recapture of any eligible policy or policies, our acceptance of reinsurance payments after the date the recapture would have taken place will not cause us to be liable for the amount of the risk that would have been recaptured. We will be liable only for a refund of reinsurance payments received, without interest. If your retention increase is due to your purchase by or purchase of another company, or your merger, assumption or any other affiliation with another company, no immediate recapture will be allowed. However, you may recapture eligible policies once the Recapture Period set out in Exhibit B has expired.

Method of Recapture. You will give us written notice of your intention to recapture within ninety days of the effective date of your retention or pool percentage increase. If you elect to recapture at a later date, you will give us additional written notice before you begin the recapture. When you have given us written notice of your intent to recapture, and the date that the recapture will begin: a) All eligible policies will be recaptured; b) Reinsurance will be reduced on the next anniversary date of each eligible policy; c) Reinsurance on each eligible policy will be reduced by an amount that will increase your retention or pool percentage to the current limit set forth in Exhibit A. If you increase your retention or the stated pool percentage shown in Exhibit A, the percentage of the risk reinsured will reduce proportionately. If reinsurance was placed with more than one reinsurer, each reinsurer's percentage will be reduced in the same proportion that each reinsurer's original percentage bore to the total percentage reinsured. d) If there is reinsurance in force in other companies on any one insured life, the reduction of the reinsurance in force under this Agreement will be in the same proportion that the amount reinsured with us bears to the total reinsurance on the life; e) If at the time of recapture the insured is disabled and premiums are being waived under any type of disability Benefit Rider, only the life benefit will be recaptured. The reinsured portion of the Disability Benefit rider will remain in force until the policy is returned to premium-paying status, at which time it will be eligible for recapture. If you omit or overlook the recapture of any eligible policy or policies, our acceptance of reinsurance payments after the date the recapture would have taken place will not cause us to be liable for the amount of the risk that would have been recaptured. We will be liable only for a refund of reinsurance payments received, without interest. If your retention increase is due to your purchase by or purchase of another company, or your merger, assumption or any other affiliation with another company, no immediate recapture will be allowed. However, you may recapture eligible policies once the Recapture Period set out in Exhibit B has expired.

Method of Recapture. You If we elect to recapture because you have increased reinsurance rates, the recapture will be effective as of the effective date of the rate increase, regardless of issue date. If we elect to recapture due to an increase in our retention limits, we will give us you written notice of your our intention to recapture within ninety days of the effective date of your our retention or pool percentage increase. If you elect to recapture at a later date, you will give us additional written notice before you begin the recapture. When you we have given us you written notice of your our intent to recapture, and the date that we will begin the recapture process of recapture, the following procedures as applicable to the Basis of Recapture undertaken will beginapply: a) All eligible policies will be recaptured; b) Reinsurance The effective date of the recapture will be reduced on the next anniversary date of each eligible policy; c) Reinsurance on each eligible policy will be reduced by an amount that will increase your our retention or pool percentage to the current limit set forth in Exhibit A. A; d) Recapture will not be made on a basis that may result in any anti-selection against the Reinsurer. If you we increase your our retention or the stated pool percentage limits shown in Exhibit A, the percentage of the risk reinsured will reduce proportionately. If reinsurance was placed with more than one reinsurer, each reinsurer's percentage will be reduced in the same proportion that each reinsurer's original percentage bore to the total percentage reinsured. d) If there is reinsurance in force in other companies on any one insured life, the reduction of the reinsurance in force under this Agreement will be in the same proportion that the amount reinsured with us bears to the total reinsurance on the life; e) If at the time of recapture the insured is disabled and premiums are being waived under any type of disability Benefit Rider, only the life benefit will be recaptured. The reinsured portion of the Disability Benefit rider will remain in force until the policy is returned to premium-paying status, at which time it will be eligible for recapture. If you we omit or overlook the recapture of any eligible policy or policies, our your acceptance of reinsurance payments premiums after the date the recapture would have taken place will not cause us you to be liable for the amount of the risk that would have been recaptured. We You will be liable only for a to refund of any such reinsurance payments premiums received, without interest. If your our retention limits increase is due to your our purchase by or purchase of another company, or your our merger, assumption or any other affiliation with another company, no immediate recapture will be allowed. However, you we may recapture eligible policies once the Recapture Period set out in Exhibit B C has expired.

Method of Recapture. You The Ceding Company will give us the Pool Reinsurers written notice of your its intention to recapture within ninety days of the effective date of your the retention or pool percentage increase. If you elect the Ceding Company elects to recapture at a later date, you it will give us the Pool Reinsurers additional written notice before you begin beginning the recapture. When you have the Ceding Company has given us the Pool Reinsurers written notice of your intent to recapture, and the date that the recapture will begin: a) All eligible policies will be recaptured; b) Reinsurance will be reduced on the next anniversary date of each eligible policy; c) Reinsurance on each eligible policy will be reduced by an amount that will increase your the Ceding Company's retention or pool percentage to the then current limit set forth in Exhibit A. If you increase your retention or the stated pool percentage shown in Exhibit A, the percentage of the risk reinsured will reduce proportionately. If reinsurance was placed with more than one reinsurer, each reinsurer's percentage will be reduced in the same proportion that each reinsurer's original percentage bore to the total percentage reinsuredas amended. d) If there is reinsurance in force in other companies reinsurers on any one insured life, the reduction of the reinsurance in force under this Agreement will be in the same proportion that the amount reinsured with us the Pool Reinsurers bears to the total reinsurance coverage on the life; e) If at the time of recapture the insured is disabled and premiums are being waived under any type of disability Disability Benefit Rider, only the life benefit will be recaptured. The reinsured portion of the Disability Benefit rider Rider will remain in force until the policy is returned to premium-paying status, at which time it will be eligible for recapture. If you omit the Ceding Company omits or overlook overlooks the recapture of any eligible policy or policies, our the acceptance of reinsurance payments by the Pool Reinsurers after the date the recapture would have taken place will not cause us the Pool Reinsurers to be liable for the amount of the risk that would have been recaptured. We The Pool Reinsurers will be liable only for a refund of reinsurance payments received, without interest. If your the Ceding Company's retention increase is due to your its purchase by or purchase of another company, or your its merger, assumption or any other affiliation with another company, no immediate recapture will be allowed. However, you the Ceding Company may recapture eligible policies once the Recapture Period set out in Exhibit B C, Section IX. has expired.

Method of Recapture. You will give us written notice of your intention to recapture within ninety days of the effective date of your retention or pool percentage increase. If you elect to recapture at a later date, you will give us additional written notice before you begin the recapture. When you have given us written notice of your intent to recapture, and the date that the recapture will begin: a) All eligible policies will be recaptured; b) Reinsurance will be reduced on the next anniversary date of each eligible policy; c) Reinsurance on each eligible policy will be reduced by an amount that will increase your retention or pool percentage to the current limit set forth in Exhibit A. If you increase your retention or the stated pool percentage shown in Exhibit A, the percentage of the risk reinsured will reduce proportionately. If reinsurance was placed with more than one reinsurer, each reinsurer's percentage will be reduced in the same proportion that each reinsurer's original percentage bore to the total percentage reinsured. d) If there is reinsurance in force in other companies on any one insured life, the reduction of the reinsurance in force under this Agreement will be in the same proportion that the amount reinsured with us bears to the total reinsurance on the life; e) If at the time of recapture the insured injured is disabled and premiums are being waived under any type of disability Benefit Rider, only the life benefit will be recaptured. The reinsured portion of the Disability Benefit rider will remain in force until the policy is returned to premium-paying status, at status it which time it will be eligible for recapture. If you omit or overlook the recapture of any eligible policy or policies, our acceptance of reinsurance payments after the date the recapture would have taken place will not cause us to be liable for the amount of the risk that would have been recaptured. We will be liable only for a refund of reinsurance payments received, without interest. If your retention increase Increase is due to your purchase by or purchase of another company, company or your merger, assumption or any other affiliation with another company, no immediate recapture will be allowed. However, you may recapture eligible policies once the Recapture Period set out in Exhibit B has expired.

Method of Recapture. You The Ceding Company will give us the Pool Reinsurers written notice of your its intention to recapture within ninety (90) days of the effective date of your the retention or pool percentage increase. If you elect the Ceding Company elects to recapture at a later date, you it will give us the Pool Reinsurers additional written notice before you begin beginning the recapture. When you have the Ceding Company has given us the Pool Reinsurers written notice of your intent to recapture, and the date that the recapture will begin: a) All eligible policies will be recaptured; b) Reinsurance will be reduced on the next anniversary date of each eligible policy; c) Reinsurance on each eligible policy will be reduced by an amount that will increase your the Ceding Company's retention or pool percentage to the then current limit set forth in Exhibit A. If you increase your retention or the stated pool percentage shown in Exhibit A, the percentage of the risk reinsured will reduce proportionately. If reinsurance was placed with more than one reinsurer, each reinsurer's percentage will be reduced in the same proportion that each reinsurer's original percentage bore to the total percentage reinsuredas amended. d) If there is reinsurance in force in other companies reinsurers on any one insured life, the reduction of the reinsurance in force under this Agreement will be in the same proportion that the amount reinsured with us the Pool Reinsurers bears to the total reinsurance coverage on the life, if the other reinsurance is eligible for recapture at the same time; e) If at the time of recapture the insured is disabled and premiums are being waived under any type of disability Disability Benefit Rider, only the life benefit will be recaptured. The reinsured portion of the Disability Benefit rider Rider will remain in force until the policy is returned to premium-paying status, at which time it will be eligible for recapture. If you omit the Ceding Company omits or overlook overlooks the recapture of any eligible policy or policies, our the acceptance of reinsurance payments by the Pool Reinsurers after the date the recapture would have taken place will not cause us the Pool Reinsurers to be liable for the amount of the risk that would have been recaptured. We The Pool Reinsurers will be liable only for a refund of reinsurance payments received, without interest. If your the Ceding Company's retention increase is due to your its purchase by or purchase of another company, or your its merger, assumption or any other affiliation with another company, no immediate recapture will be allowed. However, you the Ceding Company may recapture eligible policies once the Recapture Period set out in Exhibit B C, Section IX. has expired.

Method of Recapture. You will give us written notice of your intention to recapture within ninety days of the effective date of your retention or pool percentage increase. If you elect to recapture at a later date, you will give us additional written notice before you begin the recapture. When you have given us written notice of your intent to recapture, and the date that the when recapture will begin, you may reduce the amount of reinsurance on eligible policies on the next following policy anniversary date, subject to the following: a) 3.1 All eligible policies will must be recaptured; b3.2 The amount eligible for recapture is equal to the difference between (i) Reinsurance will be reduced the amount you originally retained, and (ii) the amount you would have retained, based on the next anniversary date Percentage Retention Limit in effect at the time of each eligible policyissue, had the new Dollar Retention Limit been in effect at the time of issue; c) Reinsurance on each eligible policy will be reduced by an amount that will increase your retention or pool percentage to the current limit set forth in Exhibit A. 3.3 If you increase your retention or the stated pool percentage Percentage Retention Limit shown in Exhibit A▇.▇▇, but not the percentage Dollar Retention Limit, recapture will not be allowed; Mapfre — CICA Life Reinsurance 1-1-09 FINAL 3.4 If portions of the risk a reinsured will reduce proportionately. If reinsurance was policy eligible for recapture were placed with more than one reinsurer, each reinsurer's percentage will be reduced in you must allocate the same proportion that each reinsurer's original percentage bore amount recaptured on a pro rata basis to the total percentage reinsured.outstanding reinsurance; and d) If there is reinsurance in force in other companies on any one insured life, the reduction of the reinsurance in force under this Agreement will be in the same proportion that the amount reinsured with us bears to the total reinsurance on the life; e) 3.5 If at the time of recapture the insured is disabled and premiums are being waived under any type of disability Disability Benefit Rider, only the life benefit will be recaptured. The reinsured portion of the Disability Benefit rider Rider will remain in force until the policy is returned to premium-paying status, at which time it will be eligible for recapture. If you omit or overlook the recapture of any eligible policy or policies, our acceptance of your reinsurance premium payments after the date the recapture would should have taken place will not cause us to be liable under this Agreement for the amount of the risk that would should have been recaptured. We will be liable only for a refund of reinsurance those payments received, without interest. If your retention increase is due to your purchase acquisition of, or by or purchase of another company, or your merger, assumption merger or any other organizational affiliation with another company, no immediate recapture will be allowed. However, you may recapture eligible policies once the Recapture Period set out in Exhibit B C.XIV has expired.

Method of Recapture. You If the Company elects to recapture, the Company will give us written notice of your intention to recapture notify the Reinsurer in writing within ninety days of from the effective date of your retention or pool percentage increasethe increase in its limit of retention. If you the Company elects to recapture one Reinsured Policy under this provision, the Company must recapture every Reinsured Policy that meets the requirements set forth in Article IX, Section 1, above. Recapture for each Reinsured Policy will occur on the later to occur of (a) the next anniversary of the Reinsured Policy or (b) the tenth anniversary of the Reinsured Policy. The amount of reinsurance on the Reinsured Policy will be reduced so that the total amount of risk retained by the Company will be equal to the Company's maximum limit of retention. If two or more Reinsurers have reinsurance on the same Reinsured Policy, the Reinsurer's portion of the reduction will be in proportion to the Reinsurer's share of the total reinsurance on the Reinsured Policy. However, if the Reinsurer has given the Company ninety day written notice of a premium rate increase, the Company may elect to recapture at a later date, you will give us additional written notice all Reinsurance Policies affected by such increase before you begin the recapture. When you have given us written notice of your intent to recapture, and the date that the recapture will begin: a) All eligible policies will be recaptured; b) Reinsurance will be reduced on the next anniversary date of each eligible policy; c) Reinsurance on each eligible policy will be reduced by an amount that will such increase your retention or pool percentage to the current limit set forth in Exhibit A. If you increase your retention or the stated pool percentage shown in Exhibit A, the percentage takes effect regardless of the risk reinsured will reduce proportionatelyabove requirements. If -------------------------------------------------------------------------------- ARTICLE X - INSOLVENCY -------------------------------------------------------------------------------- All reinsurance was placed with more than one reinsurer, each reinsurer's percentage will be reduced in the same proportion that each reinsurer's original percentage bore to the total percentage reinsured. d) If there is reinsurance in force in other companies on any one insured life, the reduction of the reinsurance in force under this Agreement will be paid on demand by the Reinsurer directly to the Company, its liquidator, receiver, or statutory successor, on the basis of the liability of the Company under the policy or policies reinsured without diminution because of the insolvency of the Company. In the event of the insolvency of the Company, the liquidator, receiver, or statutory successor of the Company will give written notice to the Reinsurer of a pending claim against the Reinsurer or the Company on any policy reinsured within a reasonable time after the claim is filed in the same proportion that conservation, liquidation, or insolvency proceedings. While the amount reinsured with us bears claim is pending, the Reinsurer may investigate and interpose, at its own expense, in the proceedings where the claim is to be adjudicated, any defenses which it may deem available to the total reinsurance on Company or its liquidator, receiver, or statutory successor. The expense incurred by the life; e) If at the time of recapture the insured is disabled and premiums are being waived under any type of disability Benefit Rider, only the life benefit Reinsurer will be recapturedcharged, subject to court approval, against the Company as an expense of the conservation, liquidation, or insolvency to the extent of a proportionate share of the benefit that accrues to the Company as a result of the defenses by the Reinsurer. Where two or more reinsurers are involved and a majority in interest elect to defend a claim, the expense will be apportioned in accordance with the terms of this Agreement as if the expense had been incurred by the Company. -------------------------------------------------------------------------------- ARTICLE XI - ARBITRATION -------------------------------------------------------------------------------- The Reinsurer and the Company intend that any dispute between them under or with respect to this Agreement be resolved without resort to any litigation. Accordingly, the Reinsurer and the Company agree that they will negotiate such dispute; PROVIDED, HOWEVER, that if any such dispute cannot be so resolved by them within sixty calendar days (or such longer period as the parties may agree) after commencing such negotiation, the Reinsurer and the Company agree that they will submit such dispute to arbitration in the manner specified in, and such arbitration proceeding will be conducted in accordance with, the rules of the American Arbitration Association. The reinsured portion of the Disability Benefit rider will remain in force until the policy is returned to premium-paying status, at which time it arbitration hearing will be eligible for recapturebefore a panel of three arbitrators, each of whom must be a present or former officer of a life insurance company. If you omit or overlook The Reinsurer and the recapture of any eligible policy or policies, our acceptance of reinsurance payments Company will each appoint one arbitrator by written notification to the other party within thirty calendar days after the date of the recapture would have taken mailing of the notification initiating the arbitration. These two arbitrators will then select the third arbitrator within sixty calendar days after the date of the mailing of the notification initiating arbitration. If either the Reinsurer or the Company fails to appoint an arbitrator, or should the two arbitrators be unable to agree upon the choice of a third arbitrator, the president of the American Arbitration Association or of its successor organization or (if necessary) the president of any similar organization designated by lot of the Reinsurer and the Company within thirty calendar days after the request will appoint the necessary arbitrator. The vote or approval of a majority of the arbitrators will decide any question considered by the arbitrators; PROVIDED, HOWEVER, that if no two arbitrators reach the same decision, then the average of the two closest mathematical determinations will constitute the decision of all three arbitrators. The place of arbitration will not cause us be Stamford, Connecticut. Each decision (including without limitation each award) of the arbitrators will be final and binding on all parties and will be nonappealable, and (at the request of either the Reinsurer or the Company) any award of the arbitrators may be confirmed by a judgment entered by any court of competent jurisdiction. No such award or judgment will bear interest. Each party will be responsible for paying (a) all fees and expenses charged by its respective counsel, accountants, actuaries, and other representatives in conjunction with such arbitration and (b) one-half of the fees and expenses charged by each arbitrator. -------------------------------------------------------------------------------- ARTICLE XII - GENERAL PROVISIONS -------------------------------------------------------------------------------- 1. REINSURER'S RIGHT OF NOTICE OF UNUSUAL PRACTICES In providing reinsurance facilities to be liable for the Company under this Agreement, the Reinsurer has granted the Company considerable authority with respect to automatic binding power, reinstatements, claim settlements, and the general administration of the reinsurance account. To facilitate transactions, the Reinsurer has required the minimum amount of information and documentation possible, reflecting its utmost faith and confidence in the risk that would have been recapturedCompany. We The Reinsurer assumes that, except as otherwise notified by the Company, the underwriting, claims and other insurance practices employed by the Company with respect to reinsurance ceded under this Agreement are generally consistent with the customary and usual practices of the insurance industry as a whole. If the Company changes or modifies its practices or engages in exceptional or uncustomary practices, the Company agrees to make those practices known to the Reinsurer before assigning any liability to the Reinsurer with respect to any reinsurance issued under such practices. 2. POLICY FORMS AND RATES Upon request, the Company will be liable only furnish the Reinsurer with a copy of its application forms, policy and rider forms, premium and non-forfeiture value manuals, reserve table, actuarial memoranda, and any other forms or tables needed for a refund proper handling of reinsurance payments receivedunder this Agreement. The Reinsurer must agree in writing before incurring additional liability resulting from any changes to policies, without interest. If your retention increase is due to your purchase by policy riders or purchase of another company, or your merger, assumption or any other affiliation with another company, no immediate recapture will be allowed. However, you may recapture eligible policies once the Recapture Period set out in Exhibit B has expiredamendments reinsured under this Agreement.