Common use of Reinsurance Rates Clause in Contracts

Reinsurance Rates. Reinsurance premium rates for life insurance and other benefits reinsured under this Agreement are shown in Exhibit C, Reinsurance Rates & Allowances. The reinsurance premium payable for any cession for any accounting period will be calculated on the basis of the net amount at risk reinsured as of that period. The calculation of net amount at risk is described in Exhibit C.II. For reasons relating to deficiency reserve requirements, the reinsurance rates shown in Exhibit C, Reinsurance Rates & Allowances cannot be guaranteed for more than one year. Although we anticipate that reinsurance rates shown in Exhibit C will apply indefinitely, we reserve the right to increase them after the first year, but not above the statutory net premium based on the applicable minimum valuation mortality table and maximum valuation interest rate. Any such increase in the reinsurance rates will be based solely on a change in anticipated mortality and will be applied on a consistent basis among all in force business being reinsured on a yearly renewable term basis, where permitted by the terms of the individual agreements. If we increase the reinsurance rates on inforce business as described above, and you have not increased your retail premiums or cost of insurance charges on these policies or contracts and you have not changed statutory reserving assumptions (e.g. a change in the “X” factors used to calculate deficiency reserves), you may recapture the business to which the rate increase applies as of the effective date of the rate increase. Such recapture will be subject to a recapture fee to be negotiated by the parties. If the original policy is issued with interim insurance, you will pay us a reinsurance rate for the interim period that is the same percentage of the first year premium that the interim period bears to twelve months. The rate that you pay us for the first policy year after the interim period will be calculated on the basis of the full annual reinsurance rate.

Reinsurance Rates. Reinsurance premium rates that we will pay you for life insurance and other benefits business reinsured under this Agreement are shown in Exhibit C, Reinsurance Rates & Allowances. C. The reinsurance premium rate payable for any cession for any accounting period will be calculated on the basis of the net amount at risk reinsured as of that period. The calculation of net amount at risk is described in Exhibit C.II. For reasons relating to deficiency reserve requirements, the reinsurance rates shown in Exhibit C, Reinsurance Rates & Allowances cannot C are to be guaranteed for more than one the first policy year. Although we In subsequent policy years, the Reinsurer reserves the right to increase the premiums for reinsurance but not above the statutory net valuation premium applicable to the Reinsured Policies after increase. While you anticipate that the reinsurance rates shown in Exhibit C will apply indefinitelycontinue to be charged, we reserve it may become necessary for you to charge a rate that is the right to increase them after greater of the first year, but not above rate from Exhibit C or the corresponding statutory net premium rate based on the 2001 Valuation Basic Table at 4.5% interest for the applicable minimum valuation mortality table and maximum valuation interest rate. Any such increase in the reinsurance rates will be based solely on a change in anticipated mortality and will be applied on a consistent basis among all in force business being reinsured on a yearly renewable term basis, where permitted by the terms of the individual agreementsrating. If we you increase the reinsurance rates on inforce business in Exhibit C, in an amount greater than that required to ensure that the Reinsurer will participate in its share of any increases in premium rates, costs, charges or fees as described aboveimplemented by the Company for the reinsured policies, and you have not increased your retail premiums or cost of insurance charges on these policies or contracts and you have not changed statutory reserving assumptions (e.g. a change in the “X” factors used to calculate deficiency reserves), you Company may recapture the all business to reinsured under this Agreement on which the rate increase applies as reinsurance rates have been increased regarless of the effective date reinsured policies' duration in force. If the Company elects to recapture reinsurance under this provision, unearned premiums, net of outstanding balances, will be paid by the rate increaseparty with the positive balance. Such The recapture will be subject to a recapture fee to be negotiated by without penalty. Procedures and details of the parties. If the original policy is issued with interim insurance, you will pay us a reinsurance rate calculation for the interim period that is the same percentage of the first year premium that the interim period bears to twelve months. The rate that you pay us for the first policy year after the interim period any benefits or riders ceded under this Agreement are shown in Exhibit C. All financial transactions under this Agreement will be calculated on the basis of the full annual reinsurance ratein United States dollars.

Reinsurance Rates. Reinsurance premium rates for life insurance and other benefits reinsured under this Agreement are shown in Exhibit C, Reinsurance Rates & Allowances. The reinsurance premium payable for any cession for any accounting period will be calculated on the basis of the net amount at risk reinsured as of that period. The calculation of net amount at risk is described in Exhibit C.II. For reasons relating to deficiency reserve requirements, the reinsurance rates shown in Exhibit C, Reinsurance Rates & Allowances cannot be guaranteed for more than one year. Although we anticipate that reinsurance rates shown in Exhibit C will apply indefinitely, we reserve the right to increase them after the first year, but not above the statutory net premium based on the applicable minimum valuation mortality table and maximum valuation interest rate. Any such increase in the reinsurance rates will be based solely on a change in anticipated mortality and will be applied on a consistent basis among all in force business being reinsured on a yearly renewable term basis, where permitted by the terms of the individual agreements. If we increase the reinsurance rates on inforce business as described above, and you have not increased your retail premiums or cost of insurance charges on these policies or contracts and you have not changed statutory reserving assumptions (e.g. a change in the “X” factors used to calculate deficiency reserves)) on these policies or contracts, you may recapture the business to which the rate increase applies as of the effective date of the rate increase. Such recapture will be subject to a recapture fee to be negotiated by , regardless of the partiesduration of the reinsured policies. If the original policy is issued with interim insurance, you will pay us a reinsurance rate for the interim period that is the same percentage of the first year premium that the interim period bears to twelve months. The rate that you pay us for the first policy year after the interim period will be calculated on the basis of the full annual reinsurance rate. 2. CURRENCY All transactions under this Agreement will be in United States dollars, unless the parties mutually agree otherwise. 3. PAYMENTS You will self-administer the reporting of your statements of account and the payment of balances due to us as shown in Exhibit B, Reinsurance Administration. Your timely payment of reinsurance premiums is a condition precedent to our continued liability for reinsurance covered under this Agreement. Your statements of account and reinsurance premium payments are due within thirty (30) days of the close of each reporting period. If the balance is due you, we will pay you within thirty (30) days of our receipt of the statement.