Common use of Basis of Reinsurance Clause in Contracts

Basis of Reinsurance. 1. On and after the effective date of this Agreement, the Ceding Company shall automatically cede to the Pool 90% of its First Excess on policy plans covered by this Agreement. Exhibit II describes the policy plans and riders covered by this Agreement, defines the First Excess, and sets out certain reinsurance limitations. The Pool shall automatically accept such First Excess, within the limits indicated in Exhibit II, provided that the Ceding Company retains its regular retention, as delineated in exhibit III, and has applied its normal underwriting standards. Underwriting risk classification will be determined by use of the Ceding Company's Underwriting Manual or a mutually agreed upon alternative method. The Ceding Company will advise the Pool of any changes in underwriting standards, underwriting requirements or other underwriting criteria prior to implementation. Members of the Pool shall have the right, at any reasonable time, to review risk classification information relating to reinsurance ceded under this Agreement either at the office of the Ceding Company or by periodic requests for such underwriting information. 2. If the Ceding Company is already on the risk for its regular retention under policies previously issued, it may cede automatically to the Pool, within the limits specified in Exhibit II, on the terms on which it would have been willing to accept the risk for its retention. 3. If the Ceding Company retains for its own account less than its regular retention for such risk, it may not bind the Pool automatically. 4. Amounts in excess of the automatic cover outlined in Exhibit II, or amounts on any risk otherwise eligible for coverage hereunder on which the Ceding Company does not care to bind the Pool, may be submitted to any members of the Pool for facultative reinsurance using the reinsurance application attached as Exhibit I. In such case, the Ceding Company shall forward to all Pool Members copies of the original applications, all medical examinations or reports, inspection reports and all other information which the Ceding Company may have pertaining to the insurability of such risk, together with a Reinsurance Application (Exhibit I). The members of the Pool, upon receipt of such information, shall promptly notify the Ceding Company of their respective underwriting action.

Basis of Reinsurance. 1. On and after the effective date of this Agreement, the Ceding Company shall automatically cede to Reinsurer, subject to the Pool 90% limitations outlined in Exhibit III, 2! of its First Excess on policy plans covered by this Agreement. Exhibit II describes the policy plans and riders covered by this Agreement, defines the First Excess, i.e., the amount of new direct agency and sets out certain reinsurance limitationsbrokerage Standard and Substandard individual issues of Life Insurance policies and Waiver of Premium Disability benefits in excess of the Ceding Company’s regular retention for such benefits as shown in Exhibit II. The Pool Reinsurer shall automatically accept such First Excess, Excess within the limits indicated in Exhibit IIIII, provided that the Ceding Company retains its regular retention, as delineated in exhibit III, and has applied its normal underwriting standards. Underwriting risk classification will be determined by use rules and retains its regular retention Life insurance volume is ceded on a yearly renewable term basis while Waiver of the Ceding Company's Underwriting Manual or Premium benefits are ceded on a mutually agreed upon alternative method. The Ceding Company will advise the Pool of any changes in underwriting standards, underwriting requirements or other underwriting criteria prior to implementation. Members of the Pool shall have the right, at any reasonable time, to review risk classification information relating to reinsurance ceded under this Agreement either at the office of the Ceding Company or by periodic requests for such underwriting informationcoinsurance basis. 2. The term “new direct agency and brokerage issues” as used in this Article shall include issues on the lives of U.S. Citizens and non-U.S. Citizens as stipulated in Appendix I-A. It shall not include reinsurance business, or except as provided herein, issues of conversions. 3. If the Ceding Company is already on the risk for its regular retention under policies previously issued, it may cede automatically reinsurance up to the Pool, within the limits specified indicated in Exhibit IIIII will be accepted automatically in accordance with Paragraph 1 above, on provided the terms on which Ceding Company has assessed the risk under the new application by applying the same underwriting rules it would have been willing to accept applied had the risk for its retention. 3. If the Ceding Company retains for its own account less than new policy fallen completely within its regular retention for such risk, it may not bind the Pool automaticallyretention. 4. Amounts in excess of Any risk which falls within the automatic cover outlined in Exhibit IIcoverage granted by this Agreement may nevertheless be submitted to Reinsurer for its underwriting opinion. If such risk is acceptable for coverage, it shall automatically be reinsured under this Agreement. Any other risk ineligible for automatic coverage hereunder, or amounts on any risk otherwise eligible for coverage hereunder on which the Ceding Company does not care desires to bind the Poolreinsure facultatively, may be submitted to any members of the Pool Reinsurer for facultative reinsurance using the reinsurance application attached as Exhibit I. In such case, the Ceding Company shall forward underwriting by forwarding to all Pool Members Reinsurer copies of the original applications, all medical examinations or reports, inspection reports and all other information which the Ceding Company may have pertaining to the insurability of the risk Any such risk, together with a Reinsurance Application (Exhibit I). The members of the Poolrisk shall, upon receipt of such information, shall promptly notify acceptance by the Ceding Company of their respective Reinsurer’s underwriting actiondecision, be reinsured under this Agreement. 5. The reinsurance under this Agreement shall be maintained in force as long as the original policy carried by the Ceding Company remains in force, except as provided in Articles VII Automatic Reinsurance Coverage after Policy Change, IX Recapture, and XVIII Duration of Agreement; Termination. 6. Notwithstanding any provision to the contrary in Article I Basis of Reinsurance of said Agreement, Reinsurer shall be automatically bound under any claim for which the Ceding Company is liable under a conditional receipt issued in respect of business reinsured automatically or submitted exclusively to Reinsurer tinder said Article I, Reinsurer’s liability on standard retention on the policy applied for. In no event, however, shall Reinsurer’s liability on any one life, including previous reinsurances ceded to Reinsurer, by the Ceding Company, exceed the automatic acceptance limits provided by this Agreement. 7. The Ceding Company s conditional receipt is attached hereto and the Ceding Company shall be obligated to advise Reinsurer of any changes or modifications of such receipt

Basis of Reinsurance. 1. On and after the effective date of this Agreementagreement, the Ceding Company shall will automatically cede to the Pool 90% of MARC its entire First Excess on policy plans covered by this Agreementas defined in Exhibit II. Exhibit II describes the policy plans and riders covered by this Agreement, defines the First Excess, and sets out certain reinsurance limitations. The Pool shall MARC will automatically accept such First Excess, Excess within the limits indicated shown in Exhibit II, provided that the Ceding Company retains keeps its regular retention, as delineated in exhibit III, retention and has applied applies its normal underwriting standards. Underwriting risk classification will be determined by use of the The Ceding Company's Underwriting Manual or a mutually agreed upon alternative methodregular retention limits are shown in Exhibit III. The Ceding Company will advise the Pool Normal underwriting standards are explained in paragraph 7 of any changes in underwriting standards, underwriting requirements or other underwriting criteria prior to implementation. Members of the Pool shall have the right, at any reasonable time, to review risk classification information relating to reinsurance ceded under this Agreement either at the office of the Ceding Company or by periodic requests for such underwriting informationarticle. 2. If IF the Ceding Company is already on the risk for its regular retention under policies previously issuedissued policies, it may cede MARC will automatically accept reinsurance up to the Pool, within the limits specified shown in Exhibit II, on provided the terms on which Ceding Company has applied the same underwriting rules it would have been willing to accept applied if the risk for new policy had fallen completely within its regular retention. 3. If the Ceding Company retains for its own account less than its regular retention for such on a risk, it may MARC will automatically accept an amount not bind exceeding the Pool automatically.amount retained by the Ceding Company on the current application. Facultative Submissions 4. Amounts in excess of the automatic cover outlined in Exhibit II, or amounts on The Ceding Company may submit any risk otherwise that is eligible for coverage hereunder on which the Ceding Company does not care automatic reinsurance to bind the PoolMARC for its underwriting opinion. If such risk is acceptable, may it will be submitted to any members of the Pool for facultative reinsurance using the reinsurance application attached as Exhibit I. reinsured automatically under this agreement. 5. In such caseaddition, the Ceding Company shall forward may apply to all Pool Members MARC for facultative reinsurance of any individual life risk that is issued on a policy plan covered under this agreement. An application may include waiver of premium disability or accidental death benefits with life. 6. The Ceding Company will make such facultative submissions by sending MARC copies of the original applications, all medical examinations or reports, inspection reports and all other information which the Ceding Company may have pertaining papers relating to the insurability of such the risk, together with a Reinsurance Application Submission Form (Exhibit I). The members of MARC will examine the Pool, upon receipt of such information, shall promptly papers and notify the Ceding Company of their respective its underwriting actionaction promptly. Any offer made by MARC will expire as indicated in the offer unless the Ceding Company withdraws its application earlier. If no expiration date is shown in the offer, the offer will expire after 120 days from the date of the offer. The Ceding Company must notify MARC of its acceptance of an offer before the expiration of the offer and during the lifetime of the insured.

Basis of Reinsurance. 1. On and after the effective date of this AgreementApril 5, 1999, the Ceding Company shall will automatically cede to [ ] its share of the Pool 90% of its First Excess on policy plans covered by this Agreementrisk as defined in Exhibit II. Exhibit II describes the policy plans and riders covered by this Agreement, defines the First Excess, and sets out certain reinsurance limitations. The Pool shall [ ] will automatically accept such First Excess, share within the limits indicated shown in Exhibit II, provided that the Ceding Company retains keeps its regular retention, as delineated in exhibit III, retention share and has applied applies its normal underwriting standards. Underwriting risk classification will be determined by use of the The Ceding Company's Underwriting Manual or a mutually agreed upon alternative methodregular retention share limits are shown in Exhibit III. The Ceding Company will advise the Pool Normal underwriting standards are explained in paragraph 7 of any changes in underwriting standards, underwriting requirements or other underwriting criteria prior to implementation. Members of the Pool shall have the right, at any reasonable time, to review risk classification information relating to reinsurance ceded under this Agreement either at the office of the Ceding Company or by periodic requests for such underwriting informationarticle. 2. If the Ceding Company is already on the risk for its regular retention under policies previously issuedissued policies, it may cede [ ] will automatically accept reinsurance up to the Pool, within the limits specified shown in Exhibit II, on provided the terms on which Ceding Company has applied the same underwriting rules it would have been willing to accept applied if the risk for new policy had fallen completely within its regular retention. 3. If the Ceding Company retains for its own account less than its regular retention for such on a risk, it may [ ] will automatically accept an amount not bind exceeding the Pool automatically.amount retained by the Ceding Company on the current application. Facultative Submissions 4. Amounts in excess of the automatic cover outlined in Exhibit II, or amounts on The Ceding Company may submit any risk otherwise that is eligible for coverage hereunder on which the Ceding Company does not care automatic reinsurance to bind the Pool[ ] for its underwriting opinion. If such risk is acceptable, may it will be submitted to any members of the Pool for facultative reinsurance using the reinsurance application attached as Exhibit I. reinsured automatically under this agreement. 5. In such caseaddition, the Ceding Company shall forward may apply to all Pool Members [ ] for facultative reinsurance of any individual life risk. 6. The Ceding Company will make such facultative submissions by sending [ ] copies of the original applications, all medical examinations or reports, inspection reports and all other information which the Ceding Company may have pertaining papers relating to the insurability of such the risk, together with a Reinsurance Application Submission Form (Exhibit I). The members of [ ] will examine the Pool, upon receipt of such information, shall promptly papers and notify the Ceding Company of their respective its underwriting actionaction promptly. Any offer made by [ ] will expire as indicated in the offer unless the Ceding Company withdraws its application earlier. If no expiration date is shown in the offer, the offer will expire after 120 days from the date of the offer. The Ceding Company must notify [ ] of its acceptance of an offer before the expiration of the offer and during the lifetime of the insured. 1 - Underwriting Standards 7. The Ceding Company and [ ] have agreed to determine underwriting risk classifications according to Exhibit IX Underwriting Guidelines. The Ceding Company should discuss any proposed changes in underwriting standards, requirements, or other criteria with [ ] before implementation.

Basis of Reinsurance. 1. On and after the effective date of this Agreementagreement, the Ceding Company shall will automatically cede to the Pool 90% of MARC its First Excess on policy plans covered by this Agreementquota share as defined in Exhibit II. Exhibit II describes the policy plans and riders covered by this Agreement, defines the First Excess, and sets out certain reinsurance limitations. The Pool shall MARC will automatically accept such First Excess, quota share within the limits indicated shown in Exhibit II, provided that the Ceding Company retains keeps its regular retention, as delineated retention share and applies its simplified issue underwriting standards in exhibit III, and has applied its normal underwriting standardsExhibit IX. Underwriting risk classification will be determined by use of the The Ceding Company's Underwriting Manual or a mutually agreed upon alternative methodregular retention limits are shown in Exhibit III. The Ceding Company will advise the Pool Normal underwriting standards are explained in paragraph 7 of any changes in underwriting standards, underwriting requirements or other underwriting criteria prior to implementation. Members of the Pool shall have the right, at any reasonable time, to review risk classification information relating to reinsurance ceded under this Agreement either at the office of the Ceding Company or by periodic requests for such underwriting informationarticle. 2. If the Ceding Company is already on the risk for its regular retention under policies previously issuedissued policies, it may cede MARC will automatically accept reinsurance up to the Pool, within the limits specified shown in Exhibit II, on provided the terms on which Ceding Company has applied the same underwriting rules it would have been willing to accept applied if the risk for new policy had fallen completely within its regular retention. 3. If the Ceding Company retains for its own account less than its regular retention for such on a risk, it may MARC will automatically accept an amount not bind exceeding the Pool automatically.amount retained by the Ceding Company on the current application. Facultative Submissions 4. Amounts in excess of the automatic cover outlined in Exhibit II, or amounts on The Ceding Company may submit any risk otherwise that is eligible for coverage hereunder on which the Ceding Company does not care automatic reinsurance to bind the PoolMARC for its underwriting opinion. If such risk is acceptable, may it will be submitted to any members of the Pool for facultative reinsurance using the reinsurance application attached as Exhibit I. reinsured automatically under this agreement. 5. In such caseaddition, the Ceding Company shall forward may apply to all Pool Members copies MARC for facultative reinsurance of the original applications, all medical examinations any individual life risk. An application may include waiver of premium disability or reports, inspection reports and all other information which the accidental death benefits with life. The Ceding Company may have pertaining apply for reinsurance of accidental death benefits without life. 6. The Ceding Company will make such facultative submissions by sending MARC copies of all papers relating to the insurability of such the risk, together with a Reinsurance Application Submission Form (Exhibit I). The members of MARC will examine the Pool, upon receipt of such information, shall promptly papers and notify the Ceding Company of their respective its underwriting actionaction promptly. Any offer made by MARC will expire as indicated in the offer unless the Ceding Company withdraws its application earlier. If no expiration date is shown in the offer, the offer will expire after 120 days from the date of the offer. The Ceding Company must notify MARC of its acceptance of an offer before the expiration of the offer and during the lifetime of the insured. Underwriting Standards 7. The Underwriting Guidelines in Exhibit IX will be used to determine underwriting risk classifications, unless the Ceding Company and MARC agree to use an alternative method. The Ceding Company should discuss any proposed changes in underwriting standards, requirements, or other criteria with MARC before implementation.

Basis of Reinsurance. 1. On and after the effective date of this Agreementagreement, the Ceding Company shall will automatically cede to REINSURER on residents of the Pool 90% of its First Excess on policy plans covered by this AgreementUnited States or Canada a quota share as defined in Exhibit II. Exhibit II describes the policy plans and riders covered by this Agreement, defines the First Excess, and sets out certain reinsurance limitations. The Pool shall REINSURER will automatically accept such First Excess, quota share within the limits indicated shown in Exhibit II, provided that the Ceding Company retains keeps its regular retention, as delineated in exhibit III, retention and has applied applies its normal underwriting standards. Underwriting risk classification will be determined by use of the The Ceding Company's Underwriting Manual or a mutually agreed upon alternative methodregular retention share is shown in Exhibit III. The Ceding Company will advise the Pool Normal underwriting standards are explained in paragraph 7 of any changes in underwriting standards, underwriting requirements or other underwriting criteria prior to implementation. Members of the Pool shall have the right, at any reasonable time, to review risk classification information relating to reinsurance ceded under this Agreement either at the office of the Ceding Company or by periodic requests for such underwriting informationarticle. 2. If the Ceding Company is already on the risk for its regular retention under policies previously issuedissued policies, it may cede REINSURER will automatically accept reinsurance up to the Pool, within the limits specified shown in Exhibit II, on provided the terms on which Ceding Company has applied the same underwriting rules it would have been willing to accept applied if the risk for new policy had fallen completely within its regular retention. 3. If the Ceding Company retains for its own account less than its regular retention for such on a risk, it may REINSURER will automatically accept an amount not bind exceeding the Pool automatically.amount retained by the Ceding Company on the current application. Facultative Submissions 4. Amounts in excess of the automatic cover outlined in Exhibit II, or amounts on The Ceding Company may submit any risk otherwise that is eligible for coverage hereunder on which the Ceding Company does not care automatic reinsurance to bind the PoolREINSURER for its underwriting opinion. If such risk is acceptable, may it will be submitted to any members of the Pool for facultative reinsurance using the reinsurance application attached as Exhibit I. reinsured automatically under this agreement. 5. In such caseaddition, the Ceding Company shall forward may apply to all Pool Members copies REINSURER for facultative reinsurance of the original applications, all medical examinations any individual life risk. An application may include waiver of premium disability or reports, inspection reports and all other information which the accidental death benefits with life. The Ceding Company may have pertaining apply for reinsurance of accidental death benefits without life. 6. The Ceding Company will make such facultative submissions by sending REINSURER copies of all papers relating to the insurability of such the risk, together with a Reinsurance Application Submission Form (Exhibit I). The members of REINSURER will examine the Pool, upon receipt of such information, shall promptly papers and notify the Ceding Company of their respective its underwriting actionaction promptly. Any offer made by REINSURER will expire as indicated in the offer unless the Ceding Company withdraws its application earlier. If no expiration date is shown in the offer, the offer will expire after 120 days from the date of the offer. The Ceding Company must notify REINSURER of its acceptance of an offer before the expiration of the offer and during the lifetime of the insured.

Basis of Reinsurance. 1. On The Ceding Company's excess of Life, Waiver of Premium and after Accidental Death Benefit insurance issued on policies subject to reinsurance, as shown on Schedule C, shall be reinsured with the effective date Accepting Company. At the option of this Agreementthe Ceding Company, applications for reinsurance may be on a facultative basis or reinsurance may be ceded to the Accepting Company automatically as hereinafter provided. 2. The liability of the Accepting Company shall begin simultaneously with that of the Ceding Company and in no event shall automatically cede the reinsurance of the Accepting Company be in force and binding unless the policy issued by the Ceding Company to the Pool 90% of its First Excess on policy plans covered by this Agreementinsured is in force. Exhibit II describes the policy plans and riders covered by this Agreement, defines the First Excess, and sets out certain reinsurance limitationsAUTOMATIC REINSURANCE 3. The Pool shall automatically accept such First Excess, within the limits indicated in Exhibit II, provided that When the Ceding Company retains its regular retentionmaximum limit of retention on a standard or substandard risk, as delineated in exhibit IIIshown on Schedule A attached hereto, it shall cede and has applied its normal underwriting standards. Underwriting risk classification will be determined by use the Accepting Company shall accept automatically reinsurance of Life, Waiver of Premium and Accidental Death Benefit insurance within the Ceding Company's Underwriting Manual or a mutually agreed upon alternative method. The Ceding Company will advise the Pool of any changes in underwriting standards, underwriting requirements or other underwriting criteria prior to implementation. Members of the Pool shall have the right, at any reasonable time, to review risk classification information relating to reinsurance ceded under this Agreement either at the office of the Ceding Company or by periodic requests for such underwriting information.limits shown on Schedule A. 24. If the Ceding Company is already on the risk for its regular retention under policies previously issued, it may cede automatically to the Pool, within the limits specified in Exhibit II, on the terms on which it would have been willing to accept the risk for its retention. 3. If the Ceding Company retains has for its own account less than its regular maximum limit of retention on a standard or substandard risk under previously issued policies and, therefore, is not retaining any portion of the insurance applied for such riskin connection with the current application, it Life, Waiver of Premium and Accidental Death Benefit reinsurance may be ceded automatically to the Accepting Company for amounts within the limits shown on Schedule A. 5. Reinsurance shall not bind be ceded automatically to the Pool automatically. 4. Amounts Accepting Company on any life if the sum of the amount of insurance already in force on the life and the amount applied for currently, in the Ceding Company and all other companies, is known to be in excess of the automatic cover outlined amounts shown on Schedule A. FACULTATIVE REINSURANCE 6. Applications for reinsurance of amounts in Exhibit II, or amounts excess of those provided on any risk otherwise eligible for coverage hereunder on which the Ceding Company does not care to bind the Pool, Schedule A may be submitted to any members of the Pool for facultative reinsurance using the reinsurance application attached as Exhibit I. In such case, the Ceding Company shall forward to all Pool Members copies of the original applications, all medical examinations or reports, inspection reports and all other information which the Ceding Company may have pertaining to the insurability of such risk, together with upon a Reinsurance Application (Exhibit I). The members of the Pool, upon receipt of such information, shall promptly notify the Ceding Company of their respective underwriting action.facultative

Basis of Reinsurance. 1. On and after the effective date of this Agreementagreement, the Ceding Company shall will automatically cede to MARC a share of the Pool 90% of its First Excess on policy plans covered by this Agreementrisk as defined in Exhibit II. Exhibit II describes the policy plans and riders covered by this Agreement, defines the First Excess, and sets out certain reinsurance limitations. The Pool shall MARC will automatically accept such First Excess, share of the risk within the limits indicated shown in Exhibit II, provided that the Ceding Company retains keeps its regular retention, as delineated in exhibit III, retention share and has applied applies its normal agreed upon underwriting standards. Underwriting risk classification will be determined by use of the The Ceding Company's Underwriting Manual or a mutually agreed upon alternative methodregular retention limits are shown in Exhibit III. The Ceding Company will advise the Pool underwriting standards are explained in paragraph 7 of any changes in underwriting standards, underwriting requirements or other underwriting criteria prior to implementation. Members of the Pool shall have the right, at any reasonable time, to review risk classification information relating to reinsurance ceded under this Agreement either at the office of the Ceding Company or by periodic requests for such underwriting informationarticle. 2. If the Ceding Company is already on the risk for its regular retention under policies previously issuedissued policies, it may cede MARC will automatically accept reinsurance up to the Pool, within the limits specified shown in Exhibit II, on provided the terms on which Ceding Company has applied the same underwriting rules it would have been willing to accept applied if the risk for new policy had fallen completely within its regular retention. 3. If the Ceding Company retains for its own account less than its regular retention for such on a risk, it may MARC will automatically accept an amount not bind exceeding the Pool automatically.amount retained by the Ceding Company on the current application. Facultative Submissions 4. Amounts in excess of the automatic cover outlined in Exhibit II, or amounts on The Ceding Company may submit any risk otherwise that is eligible for coverage hereunder on which the Ceding Company does not care automatic reinsurance to bind the PoolMARC for its underwriting opinion. If such risk is acceptable, may it will be submitted to any members of the Pool for facultative reinsurance using the reinsurance application attached as Exhibit I. reinsured automatically under this agreement. 5. In such caseaddition, the Ceding Company shall forward may apply to all Pool Members MARC for facultative reinsurance of any individual life risk that is issued on a policy plan covered under this agreement. An application may include waiver of premium disability or accidental death benefits with life. 6. The Ceding Company will make such facultative submissions by sending MARC copies of the original applications, all medical examinations or reports, inspection reports and all other information which the Ceding Company may have pertaining papers relating to the insurability of such the risk, together with a Reinsurance Application Submission Form (Exhibit I). The members of MARC will examine the Pool, upon receipt of such information, shall promptly papers and notify the Ceding Company of its underwriting action promptly. Any offer made by MARC will expire as indicated in the offer unless the Ceding Company withdraws its application earlier. If no expiration date is shown in the offer, the offer will expire after 120 days from the date of the offer. The Ceding Company must notify MARC of its acceptance of an offer before the expiration of the offer and during the lifetime of the insured. [LOGO OF MARC MUNICH RE GROUP] Underwriting Standards 7. The Ceding Company will use the agreed upon underwriting guidelines in Exhibit I Underwriting Guidelines and their respective normal underwriting actionguidelines for fully underwritten risks to determine underwriting risk classifications. The Ceding Company should discuss any proposed changes in underwriting standards, requirements, or other criteria with MARC before implementation.

Basis of Reinsurance. 1. On and after the effective date of this Agreement, the Ceding Company shall automatically cede to the Pool 90% of its First Excess on policy plans covered by this Agreement. Exhibit II describes the policy plans and riders covered by this Agreement, defines the First Excess, and sets out certain reinsurance limitations. The Pool shall automatically accept such First Excess, within the limits indicated in Exhibit II, provided that the Ceding Company retains its regular retention, as delineated in exhibit III, and has applied its normal underwriting standards. Underwriting risk classification will be determined by use of the Ceding Company's Underwriting Manual or a mutually agreed upon alternative method. The Ceding Company will advise the Pool of any changes in underwriting standards, underwriting requirements or other underwriting criteria prior to implementation. Members of the Pool shall have the right, at any reasonable time, to review risk classification information relating to reinsurance ceded under this Agreement either at the office of the Ceding Company or by periodic requests for such underwriting u nderwriting information. 2. If the Ceding Company is already on the risk for its regular retention under policies previously issued, it may cede automatically to the Pool, within the limits specified in Exhibit II, on the terms on which it would have been willing to accept the risk for its retention. 3. If the Ceding Company retains for its own account less than its regular retention for such risk, it may not bind the Pool automatically. 4. Amounts in excess of the automatic cover outlined in Exhibit II, or amounts on any risk otherwise eligible for coverage hereunder on which the Ceding Company does not care to bind the Pool, may be submitted to any members of the Pool for facultative reinsurance using the reinsurance application attached as Exhibit I. In such case, the Ceding Company shall forward to all Pool Members copies c opies of the original applications, all medical examinations or reports, inspection reports and all other information which the Ceding Company may have pertaining to the insurability of such risk, together with a Reinsurance Application (Exhibit I). The members of the Pool, upon receipt of such information, shall promptly notify the Ceding Company of their respective underwriting action.