Common use of Replication Clause in Contracts

Replication. The Companies may engage in replication transactions provided that the Companies would otherwise be authorized to invest their funds in the assets being replicated, the replication continues to be effective and each Company complies with the following quantitative limitations: • A Company shall aggregate all replicated investment positions with their direct investments as if such Company had invested in the replicated asset directly in determining its compliance with applicable quantitative limitations. • The aggregate financial statement value of assets being replicated shall not exceed 10% of the market value of a Company’s invested assets (admitted assets for life insurance companies).