Common use of PRE-ISSUE COVERAGE Clause in Contracts

PRE-ISSUE COVERAGE. For facultative policies, the Reinsurer will not be liable for benefits paid under the Ceding Company’s conditional receipt or temporary insurance agreement until the Ceding Company has accepted the Reinsurer’s offer for facultative reinsurance coverage. After such time, and for automatic policies meeting all of the conditions for automatic reinsurance coverage under Article 3 of this Agreement, the Reinsurer will be liable for benefits paid under the Ceding Company’s conditional receipt or temporary insurance agreement. The Reinsurer’s liability under the Ceding Company’s conditional receipt or temporary insurance agreement is limited to the lesser of i. or ii. below: i. The Reinsurer’s share of the Reinsurers’ Automatic Acceptance Limits as shown in Section 4 of Schedule A. ii. The amount for which the Ceding Company is liable less the amount the Ceding Company retained pursuant to Section 2.a of Schedule A, less any amount of reinsurance with other reinsurers. The pre-issue liability applies only once on any given life regardless of how many receipts were issued or initial premiums were accepted by the Ceding Company. After a policy has been issued, no reinsurance benefits are payable under this pre-issue coverage provision. In the event that the Ceding Company’s rules with respect to cash handling and the issuance of conditional receipt or temporary insurance are not followed, the Reinsurer will participate in the liability if the conditions set forth above are met and the Ceding Company does not knowingly allow such rules to be violated or condone such a practice. Such liability will be limited to the lesser of i or ii above. As in all cases, the provisions of Article 13 apply to such a claim.

PRE-ISSUE COVERAGE. For facultative policies, the Automatic The Reinsurer will not be liable for benefits paid under the Ceding Company’s conditional receipt or temporary 's insurance binder agreement until the Ceding Company has accepted the Reinsurer’s offer for facultative reinsurance coverage. After such time, and for automatic policies meeting unless all of the conditions for automatic reinsurance coverage under Article Section 3 of this AgreementAgreement are met. Reduced binding authority shall be granted to the Ceding Company on insurable lives during the Enrollment and Underwriting period of a plan (90 days from the binder start date), with said authority limited to the lesser of the actual face amount on each life or $1,000,000, split between the Ceding Company and the Reinsurer on a 50/50 first dollar quota share basis. Those lives so covered must satisfy the Ceding Company's actively-at-work criteria for a period of 90 days preceding the binder start date. Facultative For facultative reinsurance, the Reinsurer will shall not be liable for benefits paid under the Ceding Company’s conditional receipt or temporary insurance agreement. The Reinsurer’s liability under the Ceding Company’s conditional receipt or temporary insurance agreement is limited to the lesser of i. or ii. below: i. The Reinsurer’s share of the Reinsurers’ Automatic Acceptance Limits as shown in Section 4 of Schedule A. ii. The amount for which by the Ceding Company is liable less under the amount insurance binder agreement unless the Ceding Company retained pursuant submits the case to Section 2.a of Schedule Athe Reinsurer, less any amount of reinsurance with other reinsurersthe Reinsurer provides a facultative offer and the Ceding Company accepts the facultative offer. For fully underwritten policies submitted to the Reinsurer on a facultative basis, the Reinsurer shall not be liable for benefits paid by the Ceding Company under an insurance binder agreement. The pre-issue liability applies only once on any given life regardless of how many receipts were issued or initial premiums were accepted by the Ceding Company. After a policy has been issuedis in force, no reinsurance benefits are payable under this pre-issue coverage provision. In the event that the Ceding Company’s 's rules with respect to cash handling and the issuance of conditional receipt or temporary binder insurance are not followed, the Reinsurer will participate in the liability if the conditions set forth above for automatic reinsurance are met and the Ceding Company does not knowingly allow such rules to be violated or condone such a practice. Such liability will shall be limited to the lesser of i or ii above. As in all cases, the provisions of Article 13 Section 14 apply to such a claim.

PRE-ISSUE COVERAGE. For facultative policies, the Reinsurer will not be liable for benefits paid under the Ceding Company’s conditional receipt or temporary insurance agreement until the earlier of: (1) the Ceding Company has accepted Company’s acceptance of the Reinsurer’s offer for in writing, or (2) the date on which the Ceding Company receives the Reinsurer’s facultative reinsurance coverageoffer, where said offer is the first, best offer received by the Ceding Company on the policy. After such time, and for automatic policies meeting all of the conditions for automatic reinsurance coverage under Article 3 of this Agreement, the Reinsurer will be liable for benefits paid under the Ceding Company’s conditional receipt or temporary insurance agreement. The Reinsurer’s liability under the Ceding Company’s conditional receipt or temporary insurance agreement is limited to the lesser of i. or ii. below: i. The Reinsurer’s share of the Reinsurers’ Automatic Acceptance Limits as shown in Section 4 of Schedule A. ii. The amount for which the Ceding Company is liable liable, less the amount the Ceding Company retained pursuant to Section 2.a 2.a. of Schedule A, less any amount of reinsurance with other reinsurers. The pre-issue liability applies only once on any given life regardless of how many receipts were issued or initial premiums were accepted by the Ceding Company. After a policy has been issued, no reinsurance benefits are payable under this pre-issue coverage provision. In the event that the Ceding Company’s rules with respect to cash handling and the issuance of conditional receipt or temporary insurance are not followed, the Reinsurer will participate in the liability if the conditions set forth above for automatic reinsurance are met and the Ceding Company does not knowingly allow such rules to be violated or condone such a practice. Such liability will shall be limited to the lesser of i or ii above. As in all cases, the provisions of Article 13 14 apply to such a claim.