Common use of TERM CONVERSIONS Clause in Contracts

TERM CONVERSIONS. For purpose of this Agreement, a term conversion is a contractual right of the insured to replace a term policy with a permanent plan without evidence of insurability. The Reinsurer will continue to reinsure policies resulting from a term conversion of any policy reinsured under this Agreement, in an amount not to exceed the original amount reinsured hereunder. If the policy converts to a plan reinsured with the Reinsurer under either this Agreement or another Agreement, the reinsurance rates for the converted policy will be the reinsurance rates contained in the Agreement that covers the plan to which the original policy is converting. If the policy converts to a plan not reinsured with the Reinsurer, the reinsurance will continue under this Agreement on a yearly renewable term basis using the YRT conversion rates set forth in Section 4 of Schedule B. Reinsurance rates for term conversions will be point in scale (based on the original issue age, duration, and original underwriting class since issuance of the original policy). The recapture period applicable to the original policy will govern the converted policy and duration will be measured from the effective date of the original policy. Reinsurer will not reimburse Ceding Company for any conversion credits Ceding Company supplies to the insured. If the term conversion results in an increase in risk amount, the increase will be underwritten by the ceding Company as new business and will be eligible for reinsurance coverage under this Agreement as new business. When a conversion is fully underwritten, the resulting policy will be administered the same as the issuance of a new policy.

TERM CONVERSIONS. For purpose purposes of this Agreement, a term conversion is a contractual right of the insured to replace a term policy or rider with a permanent plan without evidence of insurability. . i. The Reinsurer will continue to reinsure policies resulting from a term conversion of any policy reinsured under this Agreement, in an amount not to exceed the original amount reinsured hereunder. If the policy or rider converts to a plan reinsured with the Reinsurer under either this Agreement or another Agreement, the reinsurance rates for the converted policy will be the reinsurance rates contained in the Agreement that covers the plan to which the original policy is converting. If the policy or rider converts to a plan not reinsured with the Reinsurer, the reinsurance will continue under this Agreement on a yearly renewable term basis using the YRT conversion rates set forth in Section 4 3 of Schedule B. B. ii. The Reinsurer will provide reinsurance coverage under this Agreement for policies resulting from a term conversion of a policy not previously reinsured by the Reinsurer if the converted policy exceeds the Ceding Company’s Maximum Dollar Retention Limits, shown in section 3 of Schedule A. The reinsurance rates for the converted policy will be reinsurance rates contained in this Agreement, plus an additional 5%. Reinsurance rates for term conversions will be point in scale (based on the original issue age, duration, and original underwriting class since issuance of the original policy). The recapture period applicable to the original policy will shall govern the converted policy and duration will shall be measured from the effective date of the original policy. Reinsurer will not reimburse Ceding Company for any conversion credits Ceding Company supplies to the insured. If the term conversion results in an increase in risk amount, the increase will be underwritten by the ceding Ceding Company as new business and will be eligible for reinsurance coverage under this Agreement as new business. When a conversion is fully underwritten, the resulting policy will be administered the same as the issuance of a new policy.

TERM CONVERSIONS. For purpose purposes of this Agreement, a term conversion is a contractual right of the insured to replace a term policy with a permanent plan without evidence of insurability. The Reinsurer will continue to reinsure policies resulting from a term conversion of any policy reinsured under this Agreement, in an amount not to exceed the original amount reinsured hereunder. If the policy converts to a plan reinsured with the Reinsurer under either this Agreement or another Agreement, the reinsurance rates for the converted policy will be the reinsurance rates contained in the Agreement that covers the plan to which the original policy is converting. If the policy converts to a plan not reinsured with the Reinsurer, the reinsurance will continue under this Agreement on a yearly renewable term basis using the YRT conversion rates set forth in Section 4 of Schedule B. Reinsurance rates for term conversions will be point in scale (based on the original issue age, duration, and original underwriting class since issuance of the original policy). The recapture period applicable to the original policy will govern the converted policy and duration will be measured from the effective date of the original policy. Reinsurer will not reimburse Ceding Company for any conversion credits Ceding Company supplies to the insured. If the term conversion results in an increase in risk amount, the increase will be underwritten by the ceding Ceding Company as new business and will be eligible for reinsurance coverage under this Agreement as new business. When a conversion is fully underwritten, the resulting policy will be administered the same as the issuance of a new policy.