Common use of Automatic Coverage Clause in Contracts

Automatic Coverage. A. On and after the Effective Date of this Memorandum Addendum, whenever the Ceding Company issues coverage on a risk for the Survivor Life plan covered by this Pool, and the total coverage issued and in force on that risk with the Ceding Company exceeds its then current maximum retention, such coverage will be automatically reinsured in the Pool, provided: a. that the aggregate amount of life and supplemental benefits reinsured does not exceed the maximum set out in Exhibit G of the Agreement to which this Addendum is attached; b. that each risk is not known to be a citizen of countries other than the United States and Canada, is residing in the United States or Canada, is classified in accordance with generally accepted individual underwriting practices, and is not a Jumbo Risk as defined in Exhibit E of the Agreement to which this Addendum is attached; c. that on the risk (the younger risk if joint coverage) the Ceding Company has retained its maximum Exhibit D retention, either for the current coverage or on a previous issue, or by combination of both, at the time reinsurance is required; d. that for the current coverage, the Ceding Company has not made facultative application to another reinsurer; e. that for joint life coverage where both risks are insurable, each risk must be rated Table 16 or lower for issue ages 20-75, and Table 4 or lower for issue ages 76-85; f. that for joint life coverage involving one uninsurable risk, the insurable risk must be no greater than Table 8 for issue ages 20-75, or Table 4 for issue ages 76-85.