Common use of Adjustment of Security and Withdrawals Clause in Contracts

Adjustment of Security and Withdrawals. (a) The Reinsurer shall furnish a report (a “Month-End Required Balance Report”) to the Ceding Company following the end of each calendar month containing (i) the Reinsurer’s calculation of the Required Balance as of the end of such calendar month, in each case prepared in accordance with the Required Balance Model and Calculation Methodologies, the Ceding Company Statutory Reserves report received by the Reinsurer pursuant to this Section 5.8(a) and the other terms and conditions of this Agreement (in each case, the “Month-End Required Balance”), (ii) an updated Reinsurer Sensitivity Grid prepared in accordance with Schedule F-1 for use in calculating the Required Balances used for purposes of rebalancing the Trust Account on the applicable Monthly Funding Date [***] thereafter until such time as the Month-End Required Balance and the Reinsurer Sensitivity Grid are subsequently updated in accordance with this Section 5.8(a), and (iii) a calculation of the Required Balance as of the end of the Business Day immediately preceding the date upon which the Month-End Required Balance Report is furnished to the Ceding Company, calculated using such Month-End Required Balance, as adjusted by the updated Reinsurer Sensitivity Grid and, if applicable, the Ceding Company Sensitivity Grid (the “Adjusted Month-End Required Balance”). The Reinsurer shall deliver each Month-End Required Balance Report no later than 6:00 p.m. (New York time) on the tenth (10th) Business Day following the end of each calendar month; provided, however, that for each calendar month ending during a continuation of a FMV Triggering Event, the Reinsurer shall deliver the Month-End Required Balance Report no later than 6:00 p.m. (New York time) on the earlier of (x) the second (2nd) Business Day following the day on which the Reinsurer receives from the Ceding Company the Ceding Company’s calculation of the Ceding Company Statutory Reserves and the updated Ceding Company Sensitivity Grid for such calendar month and (y) the sixteenth (16th) Business Day following the end of each calendar month; provided, that in no event shall the Reinsurer be required to deliver the Month-End Required Balance Report prior to the tenth (10th) Business Day following the end of each calendar month. In order for the Reinsurer to prepare the Month-End Required Balance Reports for each calendar month during a continuation of a FMV Triggering Event, no later than fifteen (15) Business Days following the end of each calendar month, the Ceding Company shall provide to the Reinsurer (1) a calculation of the Ceding Company Statutory Reserves as of the end of such calendar month and (2) an updated Ceding Company Sensitivity Grid prepared in accordance with Schedule F-2, provided, that the Ceding Company shall strive to deliver its calculation of the Ceding Company Statutory Reserves and the updated Ceding Company Sensitivity Grid by the ninth (9th) Business Day following the end of each calendar month. So long as no FMV Triggering Event is continuing, no later than thirty (30) calendar days following the end of each calendar quarter other than the last calendar quarter of a calendar year, and with respect to the last calendar quarter of a calendar year, no later than sixty (60) calendar days following the end of such calendar quarter, the Ceding Company shall provide to the Reinsurer, for informational purposes only, a calculation of the Ceding Company Statutory Reserves as of the end of such calendar quarter. For the avoidance of doubt, (A) all components of the Required Balance will be determined as of the end of each calendar month except that [***] will be determined on a quarterly basis in a manner consistent with Schedule E-1, (B) when calculating the Adjusted Month-End Required Balance [***], the Reinsurer Sensitivity Grid will be used only to update the CTEX Amount component of the Required Balance and (C) during the continuation of a FMV Triggering Event, the Ceding Company Sensitivity Grid will be used only to update the Ceding Company Statutory Reserves portions of the Reference Statutory Reserves components of the Required Balance.

Appears in 2 contracts

Samples: Coinsurance and Modified Coinsurance Agreement (Equitable Holdings, Inc.), Coinsurance and Modified Coinsurance Agreement (Equitable Financial Life Insurance Co)

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Adjustment of Security and Withdrawals. (a) The Reinsurer shall furnish a report (a “Month-End Required Balance Report”) to the Ceding Company following the end of each calendar month containing (i) the Reinsurer’s calculation of the Required Balance as of the end of such calendar month, in each case prepared in accordance with the Required Balance Model and Calculation Methodologies, the Reinsurer Statutory Reserves or, during the continuation of a FMV Triggering Event or a Recapture Triggering Event, the Reinsurer Statutory Reserves or the Ceding Company Statutory Reserves report received by the Reinsurer pursuant to this Section 5.8(a) 5.08(a), as applicable, and the other terms and conditions of this Agreement (in each case, the “Month-End Required Balance”), (ii) an updated Reinsurer Sensitivity Grid prepared in accordance with Schedule F-1 H for use in calculating the Required Balances used for purposes of calculating the Adjusted Month-End Required Balance and rebalancing the Trust Account on the applicable Monthly Funding Date [***] thereafter each Business Day following delivery of such Month-End Required Balance Report until such time as the Month-End Required Balance and the Reinsurer Sensitivity Grid are subsequently updated in accordance with this Section 5.8(a), 5.08(a) and (iii) a calculation of the Required Balance as of the end of the Business Day immediately preceding the date upon which the Month-End Required Balance Report is furnished to the Ceding Company, calculated using such Month-End Required Balance, as adjusted by the updated Reinsurer Sensitivity Grid and, if applicable, the Ceding Company Sensitivity Grid (the “Adjusted Month-End Required Balance”). The Reinsurer shall deliver each Month-End Required Balance Report no later than 6:00 p.m. (New York time) on the tenth (10th) Business Day following the end of each calendar month; provided, however, that for each calendar month ending during a continuation of a FMV Triggering Event or a Recapture Triggering Event, the Reinsurer shall deliver the Month-End Required Balance Report no later than 6:00 p.m. (New York time) on the earlier of (x) the second (2nd) Business Day following the day on which the Reinsurer receives from the Ceding Company the Ceding Company’s calculation of the Ceding Company Statutory Reserves and the updated Ceding Company Sensitivity Grid for such calendar month and (y) the sixteenth (16th) Business Day following the end of each calendar month; provided, that in no event shall the Reinsurer be required to deliver the Month-End Required Balance Report prior to the tenth (10th) Business Day following the end of each calendar month. In order for the Reinsurer to prepare the Month-End Required Balance Reports for each calendar month during a continuation of a FMV Triggering Event or Recapture Triggering Event, no later than fifteen (15) Business Days following the end of each calendar month, the Ceding Company shall provide to the Reinsurer (1) a calculation of the Ceding Company Statutory Reserves as of the end of such calendar month and (2) an updated Ceding Company Sensitivity Grid prepared in accordance with Schedule F-2A, provided, that the Ceding Company shall strive to deliver its calculation of the Ceding Company Statutory Reserves and the updated Ceding Company Sensitivity Grid by the ninth (9th) Business Day following the end of each calendar month. So long as no FMV Triggering Event or Recapture Triggering Event is continuing, no later than thirty (30) calendar days following the end of each calendar quarter other than the last calendar quarter of a calendar year, and with respect to the last calendar quarter of a calendar year, no later than sixty (60) calendar days following the end of such calendar quarter, the Ceding Company shall provide to the Reinsurer, for informational purposes only, a calculation of the Ceding Company Statutory Reserves as of the end of such calendar quarter. For the avoidance of doubt, (A) all components of the Required Balance will be determined as of the end of each calendar month except that [***] will be determined on a quarterly basis in a manner consistent with Schedule E-1, (B) when calculating the Adjusted Month-End Required Balance [***]Balance, so long as no FMV Triggering Event or Recapture Triggering Event is continuing, the Reinsurer Sensitivity Grid Gird will be used only to update the CTEX CTE70 Amount or Reference Statutory Reserves component of the Required Balance and (C) during the continuation of a FMV Triggering Event or Recapture Triggering Event, the Ceding Company Sensitivity Gird will be used to update the CTE70 Amount or Reference Statutory Reserves component of the Required Balance; provided that, in the event that the Ceding Company does not deliver to the Reinsurer the Ceding Company Sensitivity Grid by the date set forth in this Section 5.08(a) or in Section 5.08(c), as applicable, the Reinsurer Sensitivity Grid will be used only to update the Ceding Company Statutory Reserves portions of the CTE70 Amount or Reference Statutory Reserves components component of the Required BalanceBalance until such time as the Ceding Company Sensitivity Grid is delivered.

Appears in 1 contract

Samples: Coinsurance and Modified Coinsurance Agreement (John Hancock Life Insurance Co (Usa) Separate Account H)

Adjustment of Security and Withdrawals. (a) The Reinsurer shall furnish a report (as modified by Schedule S, to the extent such Schedule S is then applicable, a “Month-End Required Balance Report”) to the Ceding Company following the end of each calendar month containing (i) the Reinsurer’s calculation of the Required Balance as of the end of such calendar month, in each case prepared in accordance with the Required Balance Model and Calculation Methodologies, the Reinsurer Statutory Reserves or, during the continuation of a FMV Triggering Event or a Recapture Triggering Event hereunder, the Reinsurer Statutory Reserves or the Ceding Company Statutory Reserves report received by the Reinsurer pursuant to this Section 5.8(a) 5.08(a), as applicable, and the other terms and conditions of this Agreement (in each case, the “Month-End Required Balance”), (ii) an updated Reinsurer Sensitivity Grid prepared in accordance with Schedule F-1 H for use in calculating the Required Balances used for purposes of calculating the Adjusted Month-End Required Balance and rebalancing the Trust Account on the applicable Monthly Funding Date [***] thereafter each Business Day following delivery of such Month-End Required Balance Report until such time as the Month-End Required Balance and the Reinsurer Sensitivity Grid are subsequently updated in accordance with this Section 5.8(a), 5.08(a) and (iii) a calculation of the Required Balance as of the end of the Business Day immediately preceding the date upon which the Month-End Required Balance Report is furnished to the Ceding Company, calculated using such Month-End Required Balance, as adjusted by the updated Reinsurer Sensitivity Grid and, if applicable, the Ceding Company Sensitivity Grid (the “Adjusted Month-End Required Balance”). The Reinsurer shall deliver each Month-End Required Balance Report no later than 6:00 p.m. (New York time) on the tenth (10th) Business Day following the end of each calendar month; provided, however, that for each calendar month ending during a continuation of a FMV Triggering Event, the Reinsurer shall deliver the Month-End Required Balance Report no later than 6:00 p.m. (New York time) on the earlier of (x) the second (2nd) Business Day following the day on which the Reinsurer receives from the Ceding Company the Ceding Company’s calculation of the Ceding Company Statutory Reserves and the updated Ceding Company Sensitivity Grid for such calendar month and (y) the sixteenth (16th) Business Day following the end of each calendar month; provided, that in no event shall the Reinsurer be required to deliver the Month-End Required Balance Report prior to the tenth (10th) Business Day following the end of each calendar month. In order for the Reinsurer to prepare the Month-End Required Balance Reports for each calendar month during a continuation of a FMV Triggering Event, no later than fifteen (15) Business Days following the end of each calendar month, the Ceding Company shall provide to the Reinsurer (1) a calculation of the Ceding Company Statutory Reserves as of the end of such calendar month and (2) an updated Ceding Company Sensitivity Grid prepared in accordance with Schedule F-2, provided, that the Ceding Company shall strive to deliver its calculation of the Ceding Company Statutory Reserves and the updated Ceding Company Sensitivity Grid by the ninth (9th) Business Day following the end of each calendar month. So long as no FMV Triggering Event is continuing, no later than thirty (30) calendar days following the end of each calendar quarter other than the last calendar quarter of a calendar year, and with respect to the last calendar quarter of a calendar year, no later than sixty (60) calendar days following the end of such calendar quarter, the Ceding Company shall provide to the Reinsurer, for informational purposes only, a calculation of the Ceding Company Statutory Reserves as of the end of such calendar quarter. For the avoidance of doubt, (A) all components of the Required Balance will be determined as of the end of each calendar month except that [***] will be determined on a quarterly basis in a manner consistent with Schedule E-1, (B) when calculating the Adjusted Month-End Required Balance [***], the Reinsurer Sensitivity Grid will be used only to update the CTEX Amount component of the Required Balance and (C) during the continuation of a FMV Triggering Event, the Ceding Company Sensitivity Grid will be used only to update the Ceding Company Statutory Reserves portions of the Reference Statutory Reserves components of the Required Balance.Month-

Appears in 1 contract

Samples: Coinsurance and Modified Coinsurance Agreement (John Hancock Life Insurance Co of New York Separate Account A)

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Adjustment of Security and Withdrawals. (a) The amount of security required to be provided by the Reinsurer shall furnish a report (a “Month-End Required Balance Report”) to the Ceding Company be adjusted following the end of each calendar month containing (i) the Reinsurer’s calculation of Accounting Period based on the Required Balance as of the end of such calendar month, in each case prepared in accordance with the Required Balance Model and Calculation Methodologies, the Ceding Company Statutory Reserves report received Accounting Period (such amounts to be calculated by the Reinsurer pursuant and a report thereof to this Section 5.8(a) and the other terms and conditions of this Agreement (in each case, the “Month-End Required Balance”), (ii) an updated Reinsurer Sensitivity Grid prepared in accordance with Schedule F-1 for use in calculating the Required Balances used for purposes of rebalancing the Trust Account on the applicable Monthly Funding Date [***] thereafter until such time as the Month-End Required Balance and the Reinsurer Sensitivity Grid are subsequently updated in accordance with this Section 5.8(a), and (iii) a calculation of the Required Balance as of the end of the Business Day immediately preceding the date upon which the Month-End Required Balance Report is be furnished to the Ceding Company, calculated using such Month-End Required Balance, as adjusted by the updated Reinsurer Sensitivity Grid and, if applicable, the Ceding Company Sensitivity Grid (the “Adjusted Month-End Required Balance”). The Reinsurer shall deliver each Month-End Required Balance Report no later than 6:00 p.m. the twentieth (New York time) on the tenth (10th20th) Business Day following the end of each calendar month; providedsuch Accounting Period) and the Statutory Book Value or the Fair Market Value, howeveras applicable, that for each calendar month ending during a continuation of Eligible Assets then in the Trust Account and will be further adjusted as follows: (a) Prior to the occurrence of a FMV Triggering Event or a Reserve Credit Event: (i) If the aggregate Statutory Book Value of the Eligible Assets held in the Trust Account at the end of any Accounting Period is less than the Required Balance, calculated based on the most recent Accounting Period report, the Reinsurer shall deliver the Month-End Required Balance Report no later than 6:00 p.m. (New York time) on the earlier of (x) the second (2nd) Business Day following the day on which the Reinsurer receives from the Ceding Company the Ceding Company’s calculation of the Ceding Company Statutory Reserves and the updated Ceding Company Sensitivity Grid for such calendar month and (y) the sixteenth (16th) Business Day following the end of each calendar month; provided, that in no event shall the Reinsurer be required to deliver the Month-End Required Balance Report prior to the tenth (10th) Business Day following the end of each calendar month. In order for the Reinsurer to prepare the Month-End Required Balance Reports for each calendar month during a continuation of a FMV Triggering Eventshall, no later than fifteen five (15) Business Days following the end of each calendar month, the Ceding Company shall provide to the Reinsurer (1) a calculation of the Ceding Company Statutory Reserves as of the end of such calendar month and (2) an updated Ceding Company Sensitivity Grid prepared in accordance with Schedule F-2, provided, that the Ceding Company shall strive to deliver its calculation of the Ceding Company Statutory Reserves and the updated Ceding Company Sensitivity Grid by the ninth (9th) Business Day following the end of each calendar month. So long as no FMV Triggering Event is continuing, no later than thirty (305) calendar days following the date on which the relevant report is required to be delivered pursuant to this Section 4.6, transfer additional Eligible Assets to the Trust Account so that the aggregate Statutory Book Value of the Eligible Assets held in the Trust Account is not less than the Required Balance. (ii) Any Recoverables assigned to the Reinsurer pursuant to Section 3.2 shall be paid directly to the Reinsurer. (iii) If the aggregate Statutory Book Value of the Eligible Assets in the Trust Account at the end of each calendar quarter other any Accounting Period exceeds one hundred and two percent (102%) of the Required Balance, then the Reinsurer shall have the right to withdraw the excess upon notice to the Ceding Company. (b) Following the occurrence of a Triggering Event or a Reserve Credit Event: (i) If the aggregate Fair Market Value of the Eligible Assets held in the Trust Account at the end of any Accounting Period is less than the last calendar quarter of a calendar yearRequired Balance, and with respect to calculated based on the last calendar quarter of a calendar yearmost recent Accounting Period report, the Reinsurer shall, no later than sixty five (605) calendar days following the end of such calendar quarterdate on which the relevant report is required to be delivered pursuant to this Section 4.6, the Ceding Company shall provide transfer additional Eligible Assets to the Reinsurer, for informational purposes only, a calculation Trust Account so that the aggregate Fair Market Value of the Ceding Company Statutory Reserves as 25 <Page> Eligible Assets held in the Trust Account is not less than the Required Balance. (ii) Any Recoverables assigned to the Reinsurer pursuant to Section 26 <Page> 3.2 shall be deposited directly into the Trust Account to the extent the aggregate Fair Market Value of the Eligible Assets held in the Trust Account is less than the Required Balance. (iii) If the aggregate Fair Market Value of the Eligible Assets in the Trust Account at the end of such calendar quarter. For the avoidance of doubt, any Accounting Period exceeds one hundred and two percent (A102%) all components of the Required Balance will be determined as of the end of each calendar month except that [***] will be determined on a quarterly basis in a manner consistent with Schedule E-1, (B) when calculating the Adjusted Month-End Required Balance [***], the Reinsurer Sensitivity Grid will be used only to update the CTEX Amount component of the Required Balance and (C) during the continuation of a FMV Triggering Event, the Ceding Company Sensitivity Grid will be used only to update the Ceding Company Statutory Reserves portions of the Reference Statutory Reserves components of the Required Balance., then the Reinsurer shall have the right to withdraw the excess upon notice to the Ceding Company; provided that if a Reserve Credit Event has occurred and is continuing, then the Reinsurer shall have the right to withdraw such excess only upon the prior written consent of the Ceding Company, which consent shall not be unreasonably withheld, delayed or conditioned. SECTION 4.7

Appears in 1 contract

Samples: Reinsurance Agreement

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