Common use of Regulatory Risk Clause in Contracts

Regulatory Risk. The Cedents jointly and severally represent and warrant that: (a) At the Effective Date, each of their long-term care policy forms is a guaranteed renewable accident and health policy form, and as such are eligible for actuarially supported premium rate increases (which may arise, among other reasons, from adverse deviation in actual claims experience or from changes in future expected claims experience) under statutory practices and procedures in all jurisdictions in which the Cedents are licensed to conduct business; and (b) The Cedents have generally been successful in obtaining premium rate increases historically, and have not been subjected to significant risk arising from (i) regulatory action that is inconsistent with established statutory practices and procedures or (ii) insurance legislation that has prevented their ability to obtain all or the majority of their requested premium rate increases. As of the Effective Date, the Cedents are not aware of any specific reason that would indicate that they would not be able to obtain such increases in the future. (c) Whenever a Regulatory Risk Event occurs and remains unresolved, a Limit Amount Reduction shall occur and apply to reduce the Reinsurer’s Incremental Limit Account under Article II of this Agreement. The Cedents and the Reinsurer consider the provisions of this Agreement relating to Regulatory Risk Event to be in full compliance with the guidelines of Statement of Statutory Accounting Principles No. 61 and Statutory Accounting Practices and Procedures Manual – Appendix A-791.

Regulatory Risk. The Cedents jointly and severally represent and warrant that: (a) At the Effective Date, each of their long-term care policy forms is a guaranteed renewable accident and health policy form, and as such are eligible for actuarially supported premium rate increases (which may arise, among other reasons, from adverse deviation in actual claims experience or from changes in future expected claims experience) under statutory practices and procedures in all jurisdictions in which the Cedents are licensed to conduct business; and (b) The Cedents have generally been successful in obtaining premium rate increases historically, and have not been subjected to significant risk arising from (i) regulatory action that is inconsistent with established statutory practices and procedures or (ii) insurance legislation that has prevented their ability to obtain all or the majority of their requested premium rate increases. As of the Effective Date, the Cedents are not aware of any specific reason that would indicate that they would not be able to obtain such increases in the future. (c) Whenever a Regulatory Risk Event occurs and remains unresolved, a Limit Amount Reduction shall occur and apply to reduce the Reinsurer’s 's Incremental Limit Account under Article II of this Agreement. The Cedents and the Reinsurer consider the provisions of this Agreement relating to Regulatory Risk Event to be in full compliance with the guidelines of Statement of Statutory Accounting Principles No. 61 and Statutory Accounting Practices and Procedures Manual – - Appendix A-791.