Common use of COMMENCEMENT AND TERMINATION OF LIABILITY Clause in Contracts

COMMENCEMENT AND TERMINATION OF LIABILITY. The liability of Allianz Life on individual life facultative reinsurance offers that are accepted and acknowledged by the Ceding Company shall commence and terminate simultaneously with that of the Ceding Company notwithstanding the other provisions of this agreement. The reinsurance shall be subject to the same terms and conditions as the policy issued by the Ceding Company on the life of the insured - excluding the provisions governing dividends, cash values, policy loans, and settlement options. There shall be no reinsurance for interim insurance nor insurance placed in force under the terms of a conditional receipt unless and until the Ceding Company has accepted Allianz Life's offer and placed its policy in force during the lifetime of the insured in accordance with its written placement procedures. Exceptions to the following written placement procedures may be granted only by written approval from Allianz Life. In order for Allianz Life to be liable on any Conditional Receipt or Temporary insurance Receipt in accordance with the preceding qualifications, the Ceding Company must have submitted to Allianz Life a copy of the application and receipt it intends to use with regard to risks reinsured hereunder, and must have received written acknowledgment from Allianz Life that it intends to be bound on such receipt as herein stated. The Ceding Company shall give Allianz Life timely notice of proposed changes to its Conditional Receipt or Temporary Insurance Receipt or in its practices in issuing Conditional Receipts or Temporary Insurance Receipts. Allianz Life shall have no liability under such revised Conditional Receipt, Temporary Insurance Receipt or practices unless the Ceding Company has received written acknowledgment from Allianz Life that it intends to be bound by such revision.

COMMENCEMENT AND TERMINATION OF LIABILITY. The A. On reinsurance ceded under the terms of this Agreement, the liability of Allianz Life on individual life facultative reinsurance offers that are accepted and acknowledged by the Ceding Company shall REINSURER commence and terminate simultaneously simultaneously. with that of the Ceding Company notwithstanding the other provisions of this agreementCEDING COMPANY. The reinsurance shall be subject to the same terms and conditions as the policy issued by the Ceding Company on the life of the insured - excluding the provisions governing dividends, cash values, policy loans, and settlement options. There shall be no reinsurance for interim insurance nor insurance placed in force liability under the terms of a conditional receipt unless and until the Ceding Company has accepted Allianz Life's offer and placed its policy in force during the lifetime of the insured in accordance with its written placement procedures. Exceptions to the following written placement procedures may be granted only by written approval from Allianz Life. In order for Allianz Life to be liable on any Conditional Receipt or Temporary insurance Receipt this Agreement will terminate either in accordance with the preceding qualificationsDuration of Agreement provisions of this Agreement as stated in Article XX, or for an individual contract, upon the earliest of the following occurrences defined in the contract(s) reinsured hereunder: [REDACTED] B. The REINSURER shall be liable to reimburse claims only on those deaths where the date of death is on or after May 1, 1999, in accordance with Article VII. A. Should either the CEDING COMPANY or the REINSURER fail to comply with any of the terms of this Agreement, and if this is shown to be unintentional and the result of a misunderstanding, oversight or clerical error on the part of either the CEDING COMPANY or the REINSURER, then this Agreement shall not be deemed abrogated thereby, but both companies shall he restored to the positions they would hate occupied had no such oversight, misunderstanding or clerical error occurred. Such conditions are to be reported and corrected promptly after discovery. B. If the CEDING COMPANY or the REINSURER discovers that the CEDING COMPANY did not cede reinsurance on a contract it should have reinsured under this Agreement, the Ceding Company must CEDING COMPANY will take reasonable and necessary steps to ensure that similar oversights do not recur. Then this Agreement shall not be deemed abrogated thereby, but both companies shall be restored to the positions they would have submitted occupied had the CEDING COMPANY ceded such reinsurance at the original date. If the REINSURER receives no evidence that the CEDING COMPANY has taken action to Allianz Life remedy such a copy situation, the REINSURER reserves the right to limit its liability to reported contracts only. C. Any negligent or deliberate acts or omissions by the CEDING COMPANY regarding the insurance or reinsurance provided are the responsibility of the application CEDING COMPANY and receipt it intends to use with regard to risks reinsured hereunderits liability insurer, and must have received written acknowledgment from Allianz Life if any. but not that it intends to be bound on such receipt as herein statedof the REINSURER. The Ceding Company shall give Allianz Life timely notice of proposed changes to its Conditional Receipt or Temporary Insurance Receipt or in its practices in issuing Conditional Receipts or Temporary Insurance Receipts. Allianz Life shall have no previous sentence does not negate the REINSURER’s liability under such revised Conditional ReceiptArticle VII, Temporary Insurance Receipt or practices unless Settlement of Claims, of this Agreement. A. The mortality net amount at risk for each variable annuity contract reinsured hereunder shall be calculated as of the Ceding Company has received written acknowledgment from Allianz Life first day of each calendar month and shall be equal to the following: [REDACTED] B. The death benefit and the surrender charges will be as described in the variable annuity contract forms specified in Schedule A. The reinsurance premium is [REDACTED] 2. The reinsurance premium structure described above shall remain in effect as long as the death benefit design. contract fees. mortality and expense charges, administration fees and surrender charges in effect at the inception of this Agreement remain unchanged. A. Within thirty (30) days of the end of each calendar month, the CEDING COMPANY will furnish the REINSURER with a separate electronic report as detailed in Schedule C for each contract specified in Schedule A valued as of the last day of that it intends month. B. Additionally, within thirty (30) days of the end of each calendar month, the CEDING COMPANY will furnish the REINSURER with a separate paper report summarizing the following: [REDACTED] C. If the net balance is due the REINSURER, the amount due shall be remitted with the report statement. If the net balance is due the CEDING COMPANY, the REINSURER shall remit the amount to be bound by such revisionthe CEDING COMPANY within ten (10) days of receipt of the report.

COMMENCEMENT AND TERMINATION OF LIABILITY. A. On automatic reinsurance ceded under the terms of this Agreement, the liability of the REINSURER shall commence simultaneously with that of the CEDING COMPANY. In addition, coverage shall be extended to claims occurring within the conditional receipt or temporary insurance agreement period, PROVIDED that such coverage satisfies the conditions set forth in Article I, paragraph D “Automatic Coverage”. The amount of the REINSURER’s liability will be its quota share percentage of the lesser of the Conditional Receipt Amount or the Temporary Reinsurance Agreement. B. If a facultative application is submitted by the CEDING COMPANY to the REINSURER only, then the REINSURER’s liability will begin simultaneously with the CEDING COMPANY’s contractual liability for this facultative policy, upon acceptance of the REINSURER’s offer during the lifetime of the insured. In addition, coverage shall be extended to claims occurring within the conditional receipt or temporary insurance agreement period. The amount of the REINSURER’s liability will be the lesser of the REINSURER’s offer, the Conditional Receipt Amount or Temporary Reinsurance Agreement. The REINSURER’s liability ceases when the REINSURER declines the risk and duly notifies the CEDING COMPANY. The REINSURER’s liability would also cease when the CEDING COMPANY declines the REINSURER’s offer. If, however, a facultative application is submitted by the CEDING COMPANY to any other reinsurer, in addition to the REINSURER, the liability of the REINSURER will commence when the REINSURER has received notice from the CEDING COMPANY, during the lifetime of the insured, that the REINSURER’s offer has been accepted. The CEDING COMPANY will have 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 will expire unless the REINSURER explicitly states in writing that the offer is extended for some further period. C. The liability of Allianz Life on individual life facultative reinsurance offers that are accepted and acknowledged by the Ceding Company REINSURER shall commence and terminate simultaneously with that of the Ceding Company notwithstanding the other provisions of this agreement. The reinsurance shall be subject to the same terms and conditions as the policy issued by the Ceding Company on the life of the insured - excluding the provisions governing dividendsCEDING COMPANY, cash values, policy loans, and settlement options. There shall be no reinsurance for interim insurance nor insurance placed in force under the terms of a conditional receipt unless and until the Ceding Company has accepted Allianz Life's offer and placed its policy in force during the lifetime of the insured in accordance with its written placement procedures. Exceptions to the following written placement procedures may be granted only by written approval from Allianz Life. In order for Allianz Life to be liable on any Conditional Receipt or Temporary insurance Receipt terminated earlier in accordance with the preceding qualifications, Agreement. D. The REINSURER shall be liable to reimburse claims only on those claims where the Ceding Company must have submitted to Allianz Life a copy actual date of death is on or after the application and receipt it intends to use with regard to risks reinsured hereunder, and must have received written acknowledgment from Allianz Life that it intends to be bound on such receipt as herein statedCOVERAGE EFFECTIVE DATE. The Ceding Company shall give Allianz Life timely notice of proposed changes to its Conditional Receipt or Temporary Insurance Receipt or in its practices in issuing Conditional Receipts or Temporary Insurance ReceiptsFNWL Agreement No. Allianz Life shall have no liability under such revised Conditional Receipt, Temporary Insurance Receipt or practices unless the Ceding Company has received written acknowledgment from Allianz Life that it intends to be bound by such revision.07-003a-TL Page 5 Coverage Effective 9-01-08

COMMENCEMENT AND TERMINATION OF LIABILITY. A. On automatic reinsurance ceded under the terms of this Agreement, the liability of the REINSURER shall commence simultaneously with that of the CEDING COMPANY. In addition, coverage shall be extended to claims occurring within the conditional receipt or temporary insurance agreement period, PROVIDED that such coverage satisfies the conditions set forth in Article I, paragraph D “Automatic Coverage”. The amount of the REINSURER’s liability will be its quota share percentage of the lesser of the Conditional Receipt Amount or the Temporary Reinsurance Agreement. B. If a facultative application is submitted by the CEDING COMPANY to the REINSURER only, then the REINSURER’s liability will begin simultaneously with the CEDING COMPANY’s contractual liability for this facultative policy, upon acceptance of the REINSURER’s offer during the lifetime of the insured. In addition, coverage shall be extended to claims occurring within the conditional receipt or temporary insurance agreement period. The amount of the REINSURER’s liability will be the lesser of the REINSURER’s offer, the Conditional Receipt Amount or Temporary Reinsurance Agreement. The REINSURER’s liability ceases when the REINSURER declines the risk and duly notifies the CEDING COMPANY. The REINSURER’s liability would also cease when the CEDING COMPANY declines the REINSURER’s offer. If, however, a facultative application is submitted by the CEDING COMPANY to any other reinsurer, in addition to the REINSURER, the liability of the REINSURER will commence when the REINSURER has received notice from the CEDING COMPANY, during the lifetime of the insured, that the REINSURER’s offer has been accepted. The CEDING COMPANY will have 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 will expire unless the REINSURER explicitly states in writing that the offer is extended for some further period. C. The liability of Allianz Life on individual life facultative reinsurance offers that are accepted and acknowledged by the Ceding Company REINSURER shall commence and terminate simultaneously with that of the Ceding Company notwithstanding the other provisions of this agreement. The reinsurance shall be subject to the same terms and conditions as the policy issued by the Ceding Company on the life of the insured - excluding the provisions governing dividendsCEDING COMPANY, cash values, policy loans, and settlement options. There shall be no reinsurance for interim insurance nor insurance placed in force under the terms of a conditional receipt unless and until the Ceding Company has accepted Allianz Life's offer and placed its policy in force during the lifetime of the insured in accordance with its written placement procedures. Exceptions to the following written placement procedures may be granted only by written approval from Allianz Life. In order for Allianz Life to be liable on any Conditional Receipt or Temporary insurance Receipt terminated earlier in accordance with the preceding qualifications, Agreement. D. The REINSURER shall be liable to reimburse claims only on those claims where the Ceding Company must have submitted to Allianz Life a copy actual date of death is on or after the application and receipt it intends to use with regard to risks reinsured hereunder, and must have received written acknowledgment from Allianz Life that it intends to be bound on such receipt as herein statedCOVERAGE EFFECTIVE DATE. The Ceding Company shall give Allianz Life timely notice of proposed changes to its Conditional Receipt or Temporary Insurance Receipt or in its practices in issuing Conditional Receipts or Temporary Insurance ReceiptsFNWL Agreement No. Allianz Life shall have no liability under such revised Conditional Receipt, Temporary Insurance Receipt or practices unless the Ceding Company has received written acknowledgment from Allianz Life that it intends to be bound by such revision.08-004-TL Page 5 Coverage Effective 9-01-08