AUTOMATIC REINSURANCE. For automatic reinsurance, the Reinsurer's liability will commence at the same time as the Ceding Company's liability, including liability under any conditional receipt or temporary insurance provision.
AUTOMATIC REINSURANCE. 2.1 On and after the effective date of this Agreement, the Reinsurer will automatically accept a portion of the mortality risk on life insurance policies and riders directly issued by the Ceding Company and listed in Exhibit B − Plans Covered and Binding Limits. The Reinsurer will automatically accept its share of mortality risk on the above-referenced policies and riders within the limits shown in Exhibit B, provided that the insured is a resident of the United States or Canada, or meets the requirements for an International Client, all as set forth in the Ceding Company's Guidelines For Underwriting International Clients referenced in Exhibit B, and provided that:
(a) the Ceding Company keeps its retention, as shown in Exhibit A − Retention Limits of the Ceding Company, and
(b) the Ceding Company applies its normal underwriting guidelines, as stated in Exhibit C − Forms, Manuals and Issue Rules, and
(c) the sum of all amounts in force and applied for on the life with the Ceding Company, excluding amounts being internally replaced, does not exceed the Automatic Binding Limits set out in Exhibit B, and
(d) the amount of life insurance in force in all companies, including any coverage to be replaced plus the amount currently applied for on that life in all companies, does not exceed the Jumbo Limit stated in Exhibit B, and
(e) [*] It is understood and agreed that Reinsurer will generally accept Ceding Company's underwriting decisions so long as Ceding Company's underwriters act in good faith and in a manner substantially consistent with Ceding Company's underwriting guidelines and manual, age and amount requirements and control procedures, thus allowing for the application of reasonable underwriting judgment (which involves the application of positive and negative underwriting factors or considerations), and for unintentional mistakes provided that such mistakes are not material or systemic or part of a pattern that evidences disregard for the Company's underwriting and procedural requirements. The Ceding Company may not reinsure the amount it has retained on the business covered under this Agreement, as provided for in Exhibit A, on any basis without the Reinsurer's written consent; however nothing herein shall prevent Ceding Company from indemnity reinsuring or transferring any policies reinsured hereunder pursuant to a bona fide sale of the policies to be reinsured or transferred.
AUTOMATIC REINSURANCE. REINSURER's reinsurance coverage for any policy that is ceded automatically under this Agreement shall begin and end simultaneously with CEDING COMPANY's contractual liability for the policy reinsured, except as provided below in Section 6(c).
AUTOMATIC REINSURANCE. Facultative Reinsurance
AUTOMATIC REINSURANCE. Our liability for reinsurance placed automatically under this Agreement will begin and end simultaneously with your liability for the underlying policy on which reinsurance is based.
AUTOMATIC REINSURANCE. 3 ARTICLE II.................................................................
AUTOMATIC REINSURANCE. No individual notification will be necessary for placing automatic reinsurance. Subject to Article V (Reinsurance Rates and Payments) and Exhibit C (Reinsurance Reporting Forms and Reinsurance Administration), new business or changes to existing reinsurance will be shown on your periodic billing report.
AUTOMATIC REINSURANCE. We will accept automatically reinsurance of life benefits for your individually underwritten ordinary life policies on any permanent resident of the United States or Canada, in agreement with the provisions shown in Exhibit A (Reinsurance Coverage). We will also accept automatically reinsurance of riders and supplementary benefits written with the covered life benefits, but only to the extent that the riders and supplementary benefits are specifically shown in Exhibit A (Reinsurance Coverage). You have the right to modify your retention limits shown in Exhibit A (Reinsurance Coverage), Part II at any time. If your retention limits are reduced as a result of the modification, you will need to notify us in writing before you can cede reinsurance on the basis of the reduced retention limits. We will prepare a treaty amendment, which will serve as our written approval of the reduction. We reserve the right to amend the Automatic Acceptance Limits shown in Exhibit A (Reinsurance Coverage) if you modify your retention limits. We also reserve the right to modify the Automatic Acceptance Limits if you elect to participate in another arrangement or arrangements to secure additional automatic binding capacity. Changes in your issue limits or underwriting guidelines will be subject to our review. Automatic reinsurance coverage will not be available in the following situations:
1. The policy has been submitted on a facultative, facultative obligatory or initial inquiry basis to us or to any other reinsurer;
2. The risk is categorized as a "Jumbo Risk", where your underwriting papers indicate that the total life insurance in force and applied for on the insured's life exceeds the Jumbo Limit shown in Exhibit A;
3. The policy is part of any special program that you offer, including:
a) Experimental or limited retention programs, including but not limited to cancer, diabetes, aviation or coronary risks;
b) External replacement and/or conversion programs, including those with affiliates, other than contractual conversions or exchanges of the original policy.
4. You have retained an amount less than your stated pool percentage limit.
5. The policy is a result of a conversion from group insurance, unless we agree otherwise.
6. The risk is not fully underwritten or any risk where you have not followed your usual underwriting practices.
AUTOMATIC REINSURANCE. The Reinsurer’s liability for any policy ceded on an automatic basis under this Agreement shall begin simultaneously with the Company’s contractual liability for the policy reinsured. If a policy covered under this Agreement is submitted on a facultative basis for excess coverage to the Reinsurer, and the Reinsurer makes an offer which is accepted in accordance with its terms by the Ceding Company, during the lifetime of the insured, then the Reinsurer’s liability shall begin simultaneously with the Company’s contractual liability for this facultative policy, and providing that the requirements for facultative coverage described in Article II and Exhibit F have been met. The Reinsurer shall have no liability if the Reinsurer declines the risk and duly notifies the Company or if the Company declines the Reinsurer’s offer or if the offer is not accepted prior to its expiration or within the lifetime of the risk. If a policy is submitted on a facultative basis, the liability of the Reinsurer shall commence when the Reinsurer has received notice from the Company, during the lifetime of the insured, that the Reinsurer’s offer has been accepted. The Company will place facultative coverage in accordance with its then current facultative allocation procedures. However, if the Reinsurer has submitted an unconditional offer on a facultative case to the Company and a claim arises prior to the Company notifying the Reinsurer that its offer has been accepted, the Reinsurer shall be liable for its proportionate share of said claim, if it is reasonably demonstrated that the policy would have been reinsured with the Reinsurer. The Company shall have ninety (90) days from the date of the Reinsurer’s final offer in which to place the policy with the insured/owner, after which time the Reinsurer’s offer shall expire unless the Reinsurer explicitly states in writing that the offer is extended for some further period.
AUTOMATIC REINSURANCE. THE REINSURER’s reinsurance coverage for any policy that is ceded automatically under this Agreement will begin and end simultaneously with THE COMPANY’s contractual liability for the policy reinsured. In addition, THE REINSURER will be liable for benefits paid under THE COMPANY’s conditional receipt, temporary insurance agreement, or limited insurance agreement if (1) all of the conditions for automatic reinsurance coverage under the ‘AUTOMATIC REINSURANCE TERMS’ section of this Agreement are met, or (2) the death is accidental and the conditions listed in sections ‘b’ through ‘g’ under the ‘AUTOMATIC REINSURANCE TERMS’ section of this Agreement are met. THE REINSURER’s liability under THE COMPANY’s conditional receipt, temporary insurance agreement, or limited insurance agreement is limited to the lesser of (1) THE REINSURER’s reinsured portion of the face amount of the policy and (2) THE REINSURER’s quota share percentage multiplied by $1,000,000. The pre-issue liability applies only once on any given life at one time no matter how many conditional receipts, temporary insurance agreements or limited insurance agreements are in effect. After a policy has been issued, no reinsurance benefits are payable under this pre-issue coverage provision.
