DAC Tax Adjustment. (a) To the extent that Section 848 of the Code and corresponding Treasury Regulations Section 1.848-2 are applicable to the Reinsured Contracts, the Ceding Company and the Reinsurer hereby make the joint election provided for in Treasury Regulations Section 1.848-2(g)(8) (the “DAC Tax Election”) and agree as follows:
DAC Tax Adjustment. Section 10.1.
DAC Tax Adjustment. 35 ARTICLE XII.
DAC Tax Adjustment. (a) To the extent that Section 848 of the Code and corresponding Treasury Regulations Section 1.848-2 are applicable to the Reinsured Contracts, the Ceding Company and the Reinsurer hereby elect to make the joint election provided for in Treasury Regulations Section 1.848-2(g)(8) (the “DAC Tax Election”) and agree as follows: (i) The Parties will attach a schedule to their respective U.S. federal income tax returns identifying this Agreement as a reinsurance agreement for which the DAC Tax Election has been made, and will otherwise file their respective federal income tax returns in a manner consistent with the DAC Tax Election. Such schedule shall be attached to each Party’s U.S. federal income tax return filed for the first taxable year ending after the DAC Tax Election becomes effective. (ii) The Party with the net positive consideration for this Agreement for each taxable year will capitalize specified policy acquisition expenses with respect to this Agreement without regard to the general deductions limitation of Section 848(c)(1) of the Code.
DAC Tax Adjustment. 32 ARTICLE XI. MISCELLANEOUS ............................................................................................. 33 Section 11.1. Notices ..................................................................................................... 33 Section 11.2. Entire Agreement; Third Party Beneficiaries .......................................... 34 Section 11.3. Severability; Amendment; Modification; Waiver ................................... 34 Section 11.4. Governing Law ........................................................................................ 35 Section 11.5. Jurisdiction; Enforcement ........................................................................ 35 Section 11.6. Expenses .................................................................................................. 36 Section 11.7. Counterparts ............................................................................................ 36 Section 11.8.
DAC Tax Adjustment. To the extent that Section 848 of the Code and corresponding Treasury Regulation Section 1.848-2 are applicable to the Reinsured Policies, the Ceding Company and the Reinsurer hereby agree to make the joint election provided for in Treasury Regulation Section 1.848-2(g)(8) and, in furtherance of that election, agree as follows: (a) Each party will attach a schedule contemplated by Treasury Regulation 1.848- 2(g)(8) to its federal income tax return for the first taxable year that includes the date this Agreement is executed identifying the Agreement as a reinsurance agreement for which the joint election applies and will otherwise file its respective federal income tax returns in a manner consistent with the provisions of Treasury Regulation Section 1.848-2 as in effect on the date this Agreement is executed. This election will remain in effect for all future taxable years for which this Agreement remains in effect. (b) The party with the net positive consideration as defined in Section 1.848-2 of the Treasury Regulations for each taxable year under this Agreement will capitalize specified policy acquisition expenses with respect to this Agreement without regard to the general deductions limitation of Section 848(c)(1) of the Code. (c) Both parties to this Agreement agree to exchange information pertaining to the amount of the net consideration under this Agreement each year to ensure consistency for purposes of computing specified policy acquisition expenses or as otherwise required by the Internal Revenue Service. (d) The Reinsurer will submit a schedule to the Ceding Company by April 1 of each year providing the Reinsurer’s calculation of the net consideration for the preceding calendar year. This schedule will be accompanied by a statement signed by an officer of the Reinsurer stating that the Reinsurer will report such net consideration on its Tax return for the preceding calendar year. (e) The Ceding Company may contest such calculation by providing an alternative calculation to the Reinsurer in writing within thirty (30) days of the Ceding Company’s receipt of the Reinsurer’s calculation. If the Ceding Company does not so notify the Reinsurer, the Ceding Company will report the net consideration as determined by the Reinsurer in the Ceding Company’s Tax return for the previous calendar year. (f) If the Ceding Company contests the Reinsurer’s calculation of the net consideration, the parties will act in good faith to reach an agreement as to the corre...
DAC Tax Adjustment. The Company and the Reinsurer hereby agree to the following pursuant to Section 1.848-2(g)(8) of the Income Tax Regulations issued December 28, 1992, under Section 848 of the Internal Revenue Code of 1986, as amended. This election shall be effective for 2003 for all subsequent taxable years for which this Agreement remains in effect.
