Common use of Method of Recapture Clause in Contracts

Method of Recapture. If we elect to recapture because you have increased reinsurance rates, 1.a) above, the recapture will be effective as of the effective date of the rate increase, regardless of issue date. If we elect to recapture all business reinsured under this Agreement, 1.b) above, we will give you written notice of our intent to recapture and the effective date that the recapture will occur. Such notice will be at least ninety days prior to the effective date of the recapture. If we omit or overlook the recapture of any eligible policy or policies, your acceptance of reinsurance premiums after the date the recapture would have taken place will not cause you to be liable for the amount of the risk that would have been recaptured. You will be liable only to refund any such reinsurance premiums received, without interest.