Common use of Plan of Reinsurance Clause in Contracts

Plan of Reinsurance. Reinsurance ceded to the Pool members may be on the Coinsurance, Monthly Renewable Term, or Yearly Renewable Term plan. The specific plan of reinsurance for each type of coverage reinsured will be as indicated in the Exhibit B for that plan of insurance. New reinsurance will be for an amount not less than $100,000. The net amount of reinsurance for each plan of reinsurance will be as follows: Coinsurance - The net amount of reinsurance each year will equal the initial amount ceded. Yearly Renewable Term - The net amount of reinsurance each year will be the death benefit for the portion of the risk reinsured less the interpolated cash value for the entire risk. Decennial cash values will be used for computing the interpolated value in any policy year. Monthly Renewable Term - The net amount of reinsurance each month will be the death benefit (as defined by the policy) for the reinsured portion of the risk less the full value of the cash fund at the end of the preceding month.