Common use of Net Settlement Clause in Contracts

Net Settlement. (a) During the term of this Agreement, a settlement amount between the Ceding Company and the Reinsurer as of the last day of each Monthly Accounting Period (the “Net Settlement”) shall be calculated by the Ceding Company, and a statement setting forth details of such calculation (the “Monthly Settlement Statement”) reflecting in detail the Net Settlement determinations as contemplated in Exhibit 1, as well as the Ceding Company Statutory Reserves with respect to the Reinsured Contracts in payout status and Separate Account Reserves as of the last day of such Monthly Accounting Period, provided that if the Ceding Company Statutory Reserves or Separate Account Reserves as of the last day of such Monthly Accounting Period are not available, the Ceding Company will provide the Ceding Company Statutory Reserves or Separate Account Reserves, as applicable, as of the most recent calendar quarter-end, in the form of, and containing for such Monthly Accounting Period the information reflected in, Exhibit 1 shall be delivered by the Ceding Company to the Reinsurer no later than ten (10) Business Days following the end of such Monthly Accounting Period. If the amount of the Net Settlement for such Monthly Accounting Period is positive, the Ceding Company shall pay such amount in cash to the Reinsurer within five (5) Business Days after its delivery of the Monthly Settlement Statement for such period to the Reinsurer. If the amount of the Net Settlement for such Monthly Accounting Period is negative, the Reinsurer shall pay the absolute value of such amount in cash to the Ceding Company or, at the Ceding Company’s option, to the Designated Administrative Account pursuant to Section 4.4 within five (5) Business Days after its receipt of the Monthly Settlement Statement for such period.

Net Settlement. (a) During the term of this Agreement, a settlement amount between the Ceding Company and the Reinsurer as of the last day of each Monthly Accounting Period (the “Net Settlement”) shall be calculated by the Ceding CompanyReinsurer in accordance with clause (b) below, and a statement setting forth details of such calculation (the “Monthly Settlement Statement”) reflecting in detail the Net Settlement determinations as contemplated in Exhibit 1, as well as the Ceding Company Statutory Reserves with respect to the Reinsured Contracts in payout status and Separate Account Reserves as of the last day of such Monthly Accounting Period, provided that if the Ceding Company Statutory Reserves or Separate Account Reserves as of the last day of such Monthly Accounting Period are not available, the Ceding Company will provide the Ceding Company Statutory Reserves or Separate Account Reserves, as applicable, as of the most recent calendar quarter-end, in the form of, and containing for such Monthly Accounting Period the information reflected in, attached as Exhibit 1 I shall be delivered by the Reinsurer to the Ceding Company to the Reinsurer no not later than ten thirty (1030) Business Days following calendar days after the end of such Monthly each Accounting Period. If the amount of the Net Settlement for such Monthly an Accounting Period is positive, the Reinsurer shall pay such amount to the Ceding Company at the time it delivers the Settlement Statement for such Accounting Period to the Ceding Company. If the amount of the Net Settlement for an Accounting Period is negative, the Ceding Company shall pay such the absolute value of amount in cash to the Reinsurer within five (5) Business Days after its delivery of the Monthly Settlement Statement for such period to the Reinsurer. If the amount of the Net Settlement for such Monthly Accounting Period is negative, the Reinsurer shall pay the absolute value of such amount in cash to the Ceding Company or, at the Ceding Company’s option, to the Designated Administrative Account pursuant to Section 4.4 within five (5) Business Days after its receipt of the Monthly Settlement Statement for Quarterly Accounting Period. (b) The Net Settlement with respect to any Accounting Period for the reinsurance provided hereunder is equal to: (i) the Reinsured Liabilities actually paid by the Ceding Company during such periodAccounting Period, minus (ii) the Recoveries actually received by the Ceding Company during such Accounting Period. (c) For the avoidance of doubt, to the extent that the Reinsurer or any of its Affiliates makes any direct payments to or on behalf of the Ceding Company in respect of Reinsured Liabilities in respect of an Accounting Period prior to the completion of the relevant Net Settlement, the amount of any such payments shall be excluded from the Net Settlement. In addition, to the extent the Reinsurer receives any Recoveries (whether from a third party or remitted by the Ceding Company) in respect of an Accounting Period prior to the completion of the relevant Net Settlement process, the amount of any such Recoveries received shall be excluded from the Net Settlement. Section 3.4.

Net Settlement. (a) During the term of this Agreement, a settlement amount between the Ceding Company and the Reinsurer for the Reinsured Liabilities as of the last day of each Monthly Accounting Period (the “"Net Settlement”") shall be calculated by the Ceding CompanyReinsurer in accordance with (i) in the case of General Account Liabilities, Exhibit B-1 hereto and (ii) in the case of Separate Account Liabilities, Exhibit B-2 hereto, and a statement separate statements setting forth details of such calculation (the “Monthly Settlement Statement”) reflecting in detail the Net Settlement determinations as contemplated in Exhibit 1, as well as the Ceding Company Statutory Reserves with respect to the Reinsured Contracts in payout status and Separate General Account Reserves as of Liabilities (the last day of such Monthly Accounting Period, provided that if the Ceding Company Statutory Reserves or Separate "General Account Reserves as of the last day of such Monthly Accounting Period are not available, the Ceding Company will provide the Ceding Company Statutory Reserves or Separate Account Reserves, as applicable, as of the most recent calendar quarter-end, Settlement Statement") in the form of, as set forth in Exhibit B-1 hereto and containing for such Monthly Accounting Period the information reflected in, Separate Account Liabilities (the "Separate Account Settlement Statement") in the form set forth in Exhibit 1 B-2 hereto shall be delivered by the Reinsurer to the Ceding Company to in accordance with the Reinsurer no later than ten (10) Business Days following the end of such Monthly Accounting PeriodAdministrative Services Agreement. If the amount of the Net Settlement for such Monthly an Accounting Period is positive, the Ceding Company shall pay such amount in cash to the Reinsurer within five (5) Business Days after of its delivery receipt of the Monthly General Account Settlement Statement and the Separate Account Settlement Statement for such period to the ReinsurerAccounting Period. If the amount of the Net Settlement for such Monthly an Accounting Period is negative, the Reinsurer shall pay the absolute value of such amount in cash to the Ceding Company or, at the Ceding Company’s option, to time it delivers the Designated Administrative General Account pursuant to Section 4.4 within five (5) Business Days after its receipt of Settlement Statement and the Monthly Separate Account Settlement Statement for such period.Accounting Period to the Ceding Company. (b) To the extent that the Reinsurer makes any direct payments to or on behalf of the Ceding Company in respect of Reinsured Liabilities in respect of an Accounting Period prior to the Net Settlement process, whether in its capacity as the Administrator or otherwise, the amount of any such payments shall be excluded from the Net Settlement. In addition, to the extent the Reinsurer receives any Recoverables in respect of an Accounting Period prior to the Net Settlement process, whether in its capacity as the Administrator or otherwise, the amount of any such Recoverables received shall be excluded from the Net Settlement. 19 <Page> SECTION 3.5