INTERNAL REPLACEMENTS. Should the Cedent, its affiliates, successors or assigns, initiate a "Program of Internal Replacement" that includes any of the Policies reinsured hereunder, the Cedent shall immediately notify the Reinsurer. All solicited replacement policies shall be treated as recaptured rather than surrendered. The Reinsurer may elect at its sole option to treat either all policies reinsured hereunder as recaptured or all policies of the issue year(s) in which policies were internally replaced as recaptured. Such recapture shall be subject to the payment of a Terminal Accounting and Settlement by the Cedent to the Reinsurer as described in Article IX. For purposes of this Agreement, the term "Program of Internal Replacement" means any effort by the Cedent, its affiliates, successors or assigns generally to solicit replacements of Policies by which a Policy or any portion of the cash value of a Policy is exchanged for another policy or contract that is not reinsured under this Agreement; provided, however, that providing unsolicited replacements at the request of a Policy owner shall not be considered a Program of Internal Replacement.
INTERNAL REPLACEMENTS. A policy issued as an internal exchange or replacement of a policy not reinsured under this Agreement and underwritten by the Ceding Company in accordance with its underwriting guidelines, standards and procedures for exchanges and replacements will be treated as new business under this Agreement. Reinsurance may be ceded automatically or facultatively according to the same terms and conditions as apply to other new business. Reinsurance premium rates will be based on the issue age, issue date, and underwriting classification of the new policy. If a policy reinsured under this Agreement is internally exchanged or replaced, reinsurance will continue under this Agreement or any future agreement between the parties to the extent applicable. Reinsurance premium rates will be based on issue age and duration of the original policy and on the underwriting classification of the new policy.
INTERNAL REPLACEMENTS. If a CEDING COMPANY policy reinsured under this Agreement is replaced with another CEDING COMPANY policy, reinsurance will continue under this Agreement or under another agreement between CEDING COMPANY and REINSURER. Reinsurance premium rates for the new policy will be based on the issue age and duration since issue of the original policy, but on the underwriting classification of the new policy. If a CEDING COMPANY policy not reinsured under this Agreement is replaced with a CEDING COMPANY policy of the plan covered by this Agreement, other than as the result of a contractual term conversion, the new policy will be eligible for reinsurance under this Agreement. A policy issued as a result of a contractual term conversion will be eligible for reinsurance under this Agreement if the term policy was applied for on or after the effective date of this Agreement and conversion occurs within one year of the policy issue date. Reinsurance may be ceded automatically subject to the conditions listed in Section 3. or facultatively as provided by Section 5. Reinsurance premium rates will be based on the issue age, issue date and underwriting classification of the new policy.
INTERNAL REPLACEMENTS. A policy issued as an internal exchange or replacement of another policy (whether or not the original policy was reinsured under this Agreement), and underwritten by the Ceding Company in accordance with its underwriting guidelines, standards and procedures for exchanges and replacements, will be treated and covered as new business under this Agreement (notwithstanding that suicide and contestability periods may be applied from the date of the replaced or exchanged policy for coverage up to the face amount of the replaced or exchanged policy in accordance with the Ceding Company's exchange guidelines). Reinsurance of any such policy may be ceded automatically or facultatively under this Agreement according to the same terms and conditions as apply to other new business. Reinsurance premium rates will be based on the issue age, issue date, and underwriting classification of the new policy. If a policy reinsured under this Agreement is internally exchanged or replaced with another policy, reinsurance will continue under this Agreement or, if applicable, any different agreement between the parties providing reinsurance coverage for the new policy. In that event, reinsurance premium rates will be based on issue age and duration of the original policy and underwriting classification of the new policy, and Reinsurer's share shall be as provided in this Agreement, unless otherwise indicated in the internal exchange provisions of the reinsurance agreement that covers the new policy. Notwithstanding the foregoing, if there is a reinsurance agreement between the parties providing reinsurance coverage for the new policy and such agreement treats the policy as new business, then the issue age, duration, and underwriting classification shall be based on the new policy, and Reinsurer's share shall be as provided in the reinsurance agreement covering the new policy.
INTERNAL REPLACEMENTS. Should the Ceding Company, its affiliates, successors or assigns, initiate a program of Internal Replacement that would include any of the Annuities, the Ceding Company will immediately notify the Reinsurer. Such program would not include any replacements initiated by any distributors independent of the Ceding Company. The Reinsurer may elect to treat such Annuities as recaptured rather than surrendered, and such recapture will apply to all Annuities. For purposes of this Agreement, the term "Internal Replacement" means any instance in which an Annuity or any portion of the cash value of an Annuity is exchanged for another policy or annuity, not covered under this Agreement, which is written by the Ceding Company, its affiliates, successors or assigns.
INTERNAL REPLACEMENTS. Should the Ceding Company, its affiliates, successors or assigns, initiate a formal program of Internal Replacement that would include any of the annuities reinsured hereunder, the Ceding Company will immediately notify the Reinsurer. For purposes of this Agreement, the term "Internal Replacement" means any instance in which an annuity or any portion of the cash value of an annuity which is written by the Ceding Company, its affiliates, successors, or assigns is exchanged for another policy or annuity. The Reinsurer will participate on a quota share basis in any expenses associated with that program provided reinsurance coverage will continue under this Agreement for the new policy. The quota share percentage for the new policy will be same as for the replaced policy, except when the new policy is otherwise covered by this Agreement, and the quota share on the old and new policies are different. In that case, the quota share will be that of the new policy which would otherwise be applicable under this Agreement, and an amount will be paid which is equal to (i) minus (ii) where:
INTERNAL REPLACEMENTS. The Ceding Company may, at its sole discretion, offer an Internal Replacement on Business Reinsured under this Agreement, subject to the following conditions:
INTERNAL REPLACEMENTS. Should the Ceding Company, its affiliates, successors or assigns, initiate a program of Internal Replacement that would include any of the annuities reinsured hereunder, the Ceding Company will immediately notify the Reinsurer. The Reinsurer may elect to treat such annuities as recaptured rather than surrendered, and such recapture will apply to all annuities reinsured hereunder. For purposes of this Agreement, the term "Internal Replacement" means any instance in which a policy or any portion of the cash value of an annuity is exchanged for another policy or annuity, not covered under this Agreement, which is written by the Ceding Company, its affiliates, successors or assigns.
INTERNAL REPLACEMENTS. The Ceding Company shall not, and shall cause each of its Affiliates not to, without the prior written consent of the Reinsurer, solicit any contractholders, insureds or beneficiaries under any Covered Insurance Policy, or any Distributors, in connection with any Program of Internal Replacement (it being understood that the Ceding Company is not responsible and shall not be liable for any independent action taken by any brokers or Distributors other than employees of the Ceding Company or its Affiliates). As used herein, the term “Program of Internal Replacement” means any program that is initiated, maintained, sponsored or supported by the Ceding Company or any of its Affiliates to offer on a targeted basis to a class of contractholders, insureds or beneficiaries under Covered Insurance Policies to exchange any Covered Insurance Policy or any portion thereof for another policy or contract written by the Ceding Company or any of its Affiliates that is not included in the Reinsured Business. For the avoidance of doubt, nothing in this Section 2.7 shall prohibit the Ceding Company or any of its Affiliates from engaging in general solicitations or marketing efforts not targeted at contractholders, insureds and beneficiaries under the Covered Insurance Policies, or any Distributors, or otherwise issuing Policies to any Person who contacts the Ceding Company or any of its Affiliates on his or her own initiative without direct solicitation or as a result of such general solicitations or marketing efforts. In the event that a Program of Internal Replacement of the Covered Insurance Policies is required by Applicable Law or at the direction of any Governmental Body, the Ceding Company and the Reinsurer will attempt in good faith to renegotiate this Agreement to carry out its original intent with respect to the sharing of risk between the Parties in accordance with Applicable Law and risk transfer regulations.
INTERNAL REPLACEMENTS. The Company shall request, on five (5) Business Days' written notice to the Reinsurer, the right to issue an Internal Replacement upon exchange of Reinsured SPDAs. Any Reinsured SPDA that is surrendered or exchanged in connection with an Internal Replacement shall be treated as surrendered and the Reinsurer shall pay to the Company, in accordance with Sections 7.01(a)(ii) and 8.01(b), an amount equal to 99% of the Surrender Value as of the date of such exchange in respect of such Reinsured SPDA. The other annuity or insurance contract to which a Reinsured SPDA is converted or for which it is exchanged as an Internal Replacement, shall not be a Reinsured SPDA under this Agreement."
