Common use of Assignment of Reinsurance Clause in Contracts

Assignment of Reinsurance. If the REINSURED proposes to sell, assumption reinsure or otherwise transfer the Policies or risks that are reinsured under this Agreement to any third party, it shall require that the third party agree in writing to an assignment of all rights and obligations of the REINSURED under this Agreement. The REINSURER may object to any assignment that would result in a material adverse economic impact to the REINSURER. If the REINSURER objects to an assignment on this basis, the REINSURED and the REINSURER shall mutually agree on a termination charge which shall be paid by the REINSURED to the REINSURER.

Assignment of Reinsurance. If the REINSURED proposes to sell, assumption reinsure or otherwise assist in the transfer of the Policies policies or risks that are reinsured under this Agreement to any third party, it shall require that the third party agree in writing to an assignment of all rights and obligations of the REINSURED under this Agreement. The REINSURER may object to any assignment that would result in a material adverse economic impact to the REINSURER. If the REINSURER objects to an assignment on this basis, the REINSURED and the REINSURER shall mutually agree on a termination charge which shall be paid by the REINSURED to the REINSURER.