Common use of SPECIAL CONTINUATION PROGRAMS Clause in Contracts

SPECIAL CONTINUATION PROGRAMS. The Ceding Company will not introduce any special continuation programs involving policies reinsured under this Agreement without the Reinsurer's prior written approval, unless the subsequently issued policies qualify as New Business. If it is determined that a policy reinsured under this Agreement should be rescinded due to misrepresentation by the policy owner or the insured, the Reinsurer will pay its share of reasonable investigation and legal expenses connected with the rescission action. If it is determined that multiple similarly situated policies reinsured under this Agreement should all be rescinded for the same reason or reasons, the Ceding Company must consult with the Reinsurer in advance of incurring the investigation and legal expenses. The Reinsurer will not reimburse the Ceding Company for routine expenses, including but not limited to the Ceding Company's home office expenses, compensation of salaried officers and employees, and any legal expenses other than third party expenses incurred by the Ceding Company.