SETTLEMENT AND REPORTING. A. While this Agreement is in effect, Ceding Company shall pay to Reinsurer no less frequently than quarterly, with respect to eligible Policies, a reinsurance premium equal to (or the accounting equivalent of) the sum of Items (a) and (b) less (c) below. (a) Gross premiums (direct and reinsurance assumed) collected by Ceding Company during the settlement period. (b) Policy loan repayments collected by Ceding Company with respect to the Policies. (c) Gross premiums refunded by Ceding Company during the settlement period to policyholders. B. While this Agreement is in effect, Reinsurer shall pay to Ceding Company no less frequently than quarterly, a benefit and expense allowance equal to (or the accounting equivalent of) the sum of Items (a), (b), (c), (d), (e) and (f), as applicable for the period since the date of Reinsurer's last payment to Ceding Company. (a) Net Benefits paid or incurred by Ceding Company with respect to the Policies. (b) Commissions and other sales compensation paid or incurred by Ceding Company with respect to the Policies. (c) Premium taxes paid or incurred by Ceding Company with respect to the Policies. (d) Policy loan distributions to policyholders paid or incurred by Ceding Company with respect to the Policies. (e) Net reinsurance premiums paid or incurred by Ceding Company to another reinsurer with respect to the Policies. (f) So long as Ceding Company and Reinsurer remain affiliates, general insurance expenses and insurance taxes, licenses and fees excluding income taxes (Annual Statement Page 4 Lines 23 and 24) paid or incurred by Ceding Company with respect to the Policies shall be paid by Reinsurer to Ceding Company. C. Ceding Company will provide Reinsurer with accounting reports on a time schedule determined by Reinsurer, which schedule shall be no less frequently than quarterly within fifteen (15) days following the end of each calendar quarter. These reports will contain sufficient information about the Policies to enable the Reinsurer to prepare its quarterly and annual financial reports. D. Settlements as set out in Article VI, Paragraphs 1 and 2 will occur on a time schedule determined by Reinsurer, which schedule shall be no less frequently than quarterly within sixty (60) days following the end of each calendar quarter. E. In the event the Administrative Services Agreement is terminated for any reason and is not replaced by another services agreement for the Policies between Ceding Company and Reinsurer or any of its affiliates or subsidiaries, then subsections A. through D. above shall be of no force and effect and this subsection E. shall apply in lieu thereof. 1. Reinsurance premiums are payable monthly in arrears. The Ceding Company shall calculate the amount of reinsurance premium due within 45 days after the end of each month, and shall send the Reinsurer a statement showing premiums, expense allowances, claims, reserves and other information for the applicable month as requested by Reinsurer. 2. If an amount is due the Reinsurer, the Ceding Company shall pay that amount together with the statement. If Ceding Company fails to pay the amount due within 45 days after the close of the month ("Premium Due Date"), then interest shall accrue on the amount due beginning on the day following the Premium Due Date up to and including the day such premium payment is paid by the Ceding Company. The rate of interest charged per month shall be the greater of: (i) the 30 Day Treasury ▇▇▇▇ rate as published in the Money Rate Section or any successor section of the Wall Street Journal on the first business day following the Premium Due Date, or (ii) 4% per annum. The payment of reinsurance premium is a condition precedent to the liability of the Reinsurer for reinsurance covered by this Agreement. In the event that reinsurance premiums are not paid within 60 days after the Premium Due Date, the Reinsurer shall have the right to terminate the reinsurance under all policies having reinsurance premiums in arrears, with 30 days prior written notice. If all reinsurance premiums in arrears, including any that become in arrears during the 30 day notice period, are not paid before the expiration of the notice period, the Reinsurer will be relieved of all liability under those Policies as of the last date to which premiums have been paid for each Policy. Reinsurance on Policies on which reinsurance premiums subsequently fall due will automatically terminate as of the last date to which premiums have been paid for each Policy, unless reinsurance premiums on those Policies are paid on or before their respective Premium Due Dates. Terminated reinsurance may be reinstated, subject to approval by the Reinsurer, within 45 days of the date of termination, and upon payment of all reinsurance premiums in arrears including any interest accrued thereon. The Reinsurer will have no liability for any claims incurred between the date of termination and the date of the reinstatement of the reinsurance. The right to terminate reinsurance shall not prejudice the Reinsurer's right to collect premiums for the period during which reinsurance was in force prior to the expiration of the 30 days notice. 3. If an amount is due the Ceding Company, the Reinsurer shall remit such amount within 60 days of receipt of the statement. If the Reinsurer fails to pay the amount due within the 60 day period, then interest shall accrue from the day following the end of the 60 day period up to and including the day the Reinsurer pays the amount due. Interest shall be at the rate described in paragraph E.2. above.
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SETTLEMENT AND REPORTING. A. While this Agreement is in effect, Ceding Company shall pay to Reinsurer no less frequently than quarterly, with respect to eligible the Policies, a reinsurance premium equal to (or the accounting equivalent of) the sum of Items (a) and (b) less (c) below., where:
(a) Gross equals gross premiums (direct and reinsurance assumed) collected by Ceding Company during the settlement period.
(b) Policy equals policy loan repayments collected by Ceding Company with respect to the Policies.
(c) Gross equals gross premiums refunded by Ceding Company during the settlement period to policyholders.
B. While this Agreement is in effect, Reinsurer shall pay to Ceding Company no less frequently than quarterly, a benefit and expense allowance equal to (or the accounting equivalent of) the sum of Items (a), (b), (c), (d), (e) and (f), as applicable for the period since the date of Reinsurer's ’s last payment to Ceding Company., where:
(a) equals Net Benefits paid or incurred by Ceding Company with respect to the Policies.
(b) Commissions equals commissions and other sales compensation paid or incurred by Ceding Company with respect to the Policies.
(c) Premium equals premium taxes paid or incurred by Ceding Company with respect to the Policies.
(d) Policy equals policy loan distributions to policyholders paid or incurred by Ceding Company with respect to the Policies.
(e) Net equals net reinsurance premiums paid or incurred by Ceding Company to another reinsurer with respect to the Policies.
(f) So long as Ceding Company and Reinsurer remain affiliates, general insurance expenses and insurance taxes, licenses and equals adminstrative fees excluding income taxes (Annual Statement Page 4 Lines 23 and 24) paid or incurred by the Ceding Company with respect to under third party administration agreements covering the Policies shall be paid by Reinsurer to Ceding Companyceded under this Agreement.
C. Ceding Company will provide Reinsurer with accounting reports on a time schedule determined by Reinsurer, which schedule shall be no less frequently than quarterly within fifteen (15) days following the end of each calendar quarter. These reports will contain sufficient information about the Policies to enable the Reinsurer to prepare its quarterly and annual financial reports.
D. Settlements as set out in Article VI, Paragraphs 1 A and 2 B will occur on a time schedule determined by Reinsurer, which schedule shall be no less frequently than quarterly within sixty (60) days following the end of each calendar quarter.
E. In the event the Administrative Services Agreement is terminated for any reason and is not replaced by another services agreement for the Policies between Ceding Company and Reinsurer or any of its affiliates or subsidiaries, then subsections A. through D. above shall be of no force and effect and this subsection E. shall apply in lieu thereof.
1. Reinsurance premiums are payable monthly in arrears. The Ceding Company shall calculate the amount of reinsurance premium due within 45 days after the end of each month, and shall send the Reinsurer a statement showing premiums, expense allowances, claims, reserves and other information for the applicable month as requested by Reinsurer.
2. If an amount is due the Reinsurer, the Ceding Company shall pay that amount together with the statement. If Ceding Company fails to pay the amount due within 45 days after the close of the month ("Premium Due Date"), then interest shall accrue on the amount due beginning on the day following the Premium Due Date up to and including the day such premium payment is paid by the Ceding Company. The rate of interest charged per month shall be the greater of: (i) the 30 Day Treasury ▇▇▇▇ rate as published in the Money Rate Section or any successor section of the Wall Street Journal on the first business day following the Premium Due Date, or (ii) 4% per annum. The payment of reinsurance premium is a condition precedent to the liability of the Reinsurer for reinsurance covered by this Agreement. In the event that reinsurance premiums are not paid within 60 days after the Premium Due Date, the Reinsurer shall have the right to terminate the reinsurance under all policies having reinsurance premiums in arrears, with 30 days prior written notice. If all reinsurance premiums in arrears, including any that become in arrears during the 30 day notice period, are not paid before the expiration of the notice period, the Reinsurer will be relieved of all liability under those Policies as of the last date to which premiums have been paid for each Policy. Reinsurance on Policies on which reinsurance premiums subsequently fall due will automatically terminate as of the last date to which premiums have been paid for each Policy, unless reinsurance premiums on those Policies are paid on or before their respective Premium Due Dates. Terminated reinsurance may be reinstated, subject to approval by the Reinsurer, within 45 days of the date of termination, and upon payment of all reinsurance premiums in arrears including any interest accrued thereon. The Reinsurer will have no liability for any claims incurred between the date of termination and the date of the reinstatement of the reinsurance. The right to terminate reinsurance shall not prejudice the Reinsurer's right to collect premiums for the period during which reinsurance was in force prior to the expiration of the 30 days notice.
3. If an amount is due the Ceding Company, the Reinsurer shall remit such amount within 60 days of receipt of the statement. If the Reinsurer fails to pay the amount due within the 60 day period, then interest shall accrue from the day following the end of the 60 day period up to and including the day the Reinsurer pays the amount due. Interest shall be at the rate described in paragraph E.2. above.
Appears in 1 contract
SETTLEMENT AND REPORTING. A. While this Agreement is in effect, Ceding Company shall pay to Reinsurer no less frequently than quarterly, with respect to eligible Policies, a reinsurance premium equal to (or the accounting equivalent of) the sum of Items (a) and (b) less (c) below.
(a) Gross premiums (direct and reinsurance assumed) collected by Ceding Company during the settlement period.
(b) Policy loan repayments collected by Ceding Company with respect to the Policies.
(c) Gross premiums refunded by Ceding Company during the settlement period to policyholders.
B. While this Agreement is in effect, Reinsurer shall pay to Ceding Company no less frequently than quarterly, a benefit and expense allowance equal to (or the accounting equivalent of) the sum of Items (a), (b), (c), (d), (e) and (f)) below, as applicable for the period since the date of Reinsurer's last payment to Ceding Company.
(a) Net Benefits paid or incurred by Ceding Company with respect to the Policies.
(b) Commissions and other sales compensation paid or incurred by Ceding Company with respect to the Policies.
(c) Premium taxes paid or incurred by Ceding Company with respect to the Policies.
(d) Policy loan distributions to policyholders paid or incurred by Ceding Company with respect to the Policies.
(e) Net reinsurance premiums paid or incurred by Ceding Company to another reinsurer with respect to the Policies.
(f) So long as Ceding Company and Reinsurer remain affiliates, general insurance expenses and insurance taxes, licenses and fees excluding income taxes (Annual Statement Page 4 Lines 23 and 24) paid or incurred by Ceding Company with respect to the Policies shall be paid by Reinsurer to Ceding Company.
C. Ceding Company will provide Reinsurer with accounting reports on a time schedule determined by Reinsurer, which schedule shall be no less frequently than quarterly within fifteen (15) days following the end of each calendar quarter. These reports will contain sufficient information about the Policies to enable the Reinsurer reinsurer to prepare its quarterly and annual financial reports.
D. Settlements as set out in Article VI, Paragraphs 1 and 2 will occur on a time schedule determined by Reinsurer, which schedule shall be no less frequently than quarterly within sixty (60) days following the end of each calendar quarter.
E. In the event the Administrative Services Agreement is terminated for any reason and is not replaced by another services agreement for the Policies between Ceding Company and Reinsurer or any of its affiliates or subsidiaries, then subsections A. through D. above shall be of no force and effect and this subsection E. shall apply in lieu thereof.
1. Reinsurance premiums are payable monthly in arrears. The Ceding Company shall calculate the amount of reinsurance premium due within 45 days after the end of each month, and shall send the Reinsurer a statement showing premiums, expense allowances, claims, reserves and other information for the applicable month as requested by Reinsurer.
2. If an amount is due the Reinsurer, the Ceding Company shall pay that amount together with the statement. If Ceding Company fails to pay the amount due within 45 days after the close of the month ("Premium Due Date"), then interest shall accrue on the amount due beginning on the day following the Premium Due Date up to and including the day such premium payment is paid by the Ceding Company. The rate of interest charged per month shall be the greater of: (i) the 30 Day Treasury ▇▇▇▇ rate as published in the Money Rate Section or any successor section of the Wall Street Journal on the first fist business day following the Premium Due Date, or (ii) 4% per annum. The payment of reinsurance premium is a condition precedent to the liability of the Reinsurer for reinsurance covered by this Agreement. In the event that reinsurance premiums are not paid within 60 days after the Premium Due Date, the Reinsurer shall have the right to terminate the reinsurance under all policies having reinsurance premiums in arrears, with 30 days prior written notice. If all reinsurance premiums in arrears, including any that become in arrears during the 30 day notice period, are not paid before the expiration of the notice period, the Reinsurer will be relieved of all liability under those Policies as of the last date to which premiums have been paid for each Policy. Reinsurance on Policies on which reinsurance premiums subsequently fall due will automatically terminate as of the last date to which premiums have been paid for each Policy, unless reinsurance premiums on those Policies are paid on or before their respective Premium Due Dates. Terminated reinsurance may be reinstated, subject to approval by the Reinsurer, within 45 days of the date of termination, and upon payment of all reinsurance premiums in arrears including any interest accrued thereon. The Reinsurer will have no liability for any claims incurred between the date of termination and the date of the reinstatement of the reinsurance. The right to terminate reinsurance shall not prejudice the Reinsurer's right to collect premiums for the period during which reinsurance was in force prior to the expiration of the 30 days notice.
3. If an amount is due the Ceding Company, the Reinsurer shall remit such amount within 60 days of receipt of the statement. If the Reinsurer fails to pay the amount due within the 60 day period, then interest shall accrue from the day following the end of the 60 day period up to and including the day the Reinsurer pays the amount due. Interest shall be at the rate described in paragraph E.2. above.
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