Common use of PROGRAM OF INTERNAL REPLACEMENT Clause in Contracts

PROGRAM OF INTERNAL REPLACEMENT. Should the Company, its affiliates, successors or assigns, initiate a Program of Internal Replacement, as defined below, that would include any of the Reinsured Policies hereunder, the Company will immediately notify the Reinsurer. For each Reinsured Policy hereunder that has been replaced under a Program of Internal Replacement, the Reinsurer shall have the option, at its sole discretion, of either treating the Reinsured Policies as recaptured or continuing reinsurance on the new policy under this Agreement.