Common use of Continuations Clause in Contracts

Continuations. A Continuation of a Policy may occur as a replacement or exchange. If the Company issues a Continuation of a Policy as defined in this Article and Article 25 “Definitions”, it agrees to reinsure the Continuation with the Reinsurer, subject to the provisions of this Article. A Policy resulting from an exchange or replacement will be underwritten by the Company in accordance with its underwriting guidelines, standards and procedures for exchanges and replacements. If the Company’s guidelines treat the Policy as new business, then the reinsurance will also be considered new business, and the provisions of Article 3, “Automatic Reinsurance”, or Article 4 “Facultative Reinsurance”, shall apply to such Policy as they would to other new business. For example, new business is defined as those policies on which: a. The Company has obtained complete and current underwriting evidence on the full amount; and b. The full normal commissions are paid for the new plan; and c. The suicide and contestable provisions apply as if the Policy were newly issued. If the above new business provisions do not apply, the Company and the Reinsurer must specifically agree on terms and procedures for the reinsurance coverage to continue. Furthermore, unless mutually agreed otherwise, Policies that are not originally reinsured with the Reinsurer and that are converted or exchanged to or replaced by a plan covered under this Agreement will not be reinsured hereunder. The Reinsurer’s or facultative underwriting Designee’s approval will be required if the original Policy was reinsured on a Facultative Reinsurance basis.

Continuations. A Continuation of a Policy may occur as a replacement or exchange. If the Company issues a Continuation of a Policy as defined in this Article 12 and Article 25 “Definitions”, it agrees to reinsure the Continuation with the Reinsurer, subject to the provisions of this Article. A policy that is a Continuation of a policy not previously reinsured with the Reinsurer, shall not be reinsured under this Agreement without the prior written consent of the original reinsurer and reinsurance terms agreed upon by the Company and the Reinsurer. If the Company issues a Policy resulting from an exchange internal replacement or replacement will be underwritten by exchange, the Company in accordance with its underwriting guidelinesReinsurer shall continue to reinsure the new Policy, standards and procedures for exchanges and replacementsprovided the replaced or exchanged policy was reinsured. If the Company’s guidelines treat Company treats the Policy as new business, subject to the definition of a Policy Continuation in this Article 12 and Article 25, “Definitions”, then the reinsurance will shall also be considered new business, . Such policies must be fully underwritten for the full amount and the provisions of Article 3, “Automatic Reinsurance”, or Article 4 “Facultative Reinsurance”, shall apply to such Policy as they would to other new business. For example, must be issued with full new business is defined as those policies commissions. Where permitted by law, they must also include full suicide and contestability provisions. If the previous policy was reinsured on which: a. The Company has obtained complete and current underwriting evidence on the full amount; and b. The full normal commissions are paid for a Facultative Reinsurance basis, the new plan; and c. The suicide and contestable provisions apply policy must be submitted on a facultative basis as if the Policy were newly issuedwell. If the above new business provisions do not apply, the Company and the Reinsurer must specifically agree on terms and procedures for the reinsurance coverage to continue. Furthermore, unless mutually agreed otherwise, Policies policies that are not originally reinsured with the Reinsurer and that are converted or exchanged to or replaced by a plan covered under this Agreement will not be reinsured hereunderhereunder unless such conversion, exchange or replacement is new business, as defined herein. If the replacement or exchange results in an increase in the risk amount, the increase shall be underwritten by the Company in accordance with its new business underwriting and issue standards and procedures. The Reinsurer’s or facultative underwriting Designee’s approval will be required if Reinsurer shall accept its proportional share of such increases, subject to the original Policy was reinsured on a Facultative Reinsurance basisnew business provisions of this Agreement.

Continuations. A Continuation of a Policy may occur as a replacement or exchange. If the Company issues a Continuation of a Policy Continuation, as defined in this Article and Article 25 “Definitions”12.02, it agrees to reinsure the this Continuation with the Reinsurer, subject in an amount not to exceed the original amount reinsured hereunder immediately prior to the provisions effective date of this Articlethe Continuation. A Continuation is a new Policy that is a term conversion, replacement to an existing Policy, or a change to an existing Policy issued in compliance with the terms of the original Policy or satisfying any one of the following conditions: a. the continuing Policy is issued without the same new underwriting information the Company would normally obtain for a newly issued policy; or b. the continuing Policy is issued without a suicide exclusion or contestable period for the same period of time as those contained in other newly issued policies; or c. the Company may not pay the same commissions to its agent in the first year that it would normally pay for a newly issued policy. A policy that is a Continuation of a policy previously reinsured with the Reinsurer shall be reinsured under this Agreement. A policy that is a Continuation of a policy not previously reinsured with the Reinsurer shall not be reinsured under this Agreement if: a. the policy is reinsured under a separate agreement or b. without reinsurance terms agreed upon by the Company and Reinsurer. The Reinsurer's approval will be required if the original policy was reinsured on a Facultative Reinsurance basis. If a policy resulting from an exchange or replacement will be underwritten by the Company in accordance with its underwriting guidelines, standards and procedures for exchanges and replacements. If the Company’s guidelines treat the Policy is treated as new business, then the reinsurance will also be considered new business, and the provisions of Article Articles 3, “"Automatic Reinsurance”", or Article 4 “and 4, "Facultative Reinsurance”", shall apply to such Policy policy as they would to any other new business. For example, new business is defined as those policies on which: a. The Company has obtained complete and current underwriting evidence on the full amount; and b. The full normal commissions are paid for the new plan; and c. The suicide and contestable provisions apply as if the Policy were newly issued. If the above new business provisions do not apply, the Company and the Reinsurer must specifically agree on terms and procedures for the reinsurance coverage to continue. Furthermore, unless mutually agreed otherwise, Policies that are not originally reinsured with the Reinsurer and that are converted or exchanged to or replaced by a plan covered under this Agreement will not be reinsured hereunder. The Reinsurer’s or facultative underwriting Designee’s approval will be required if the original Policy was reinsured on a Facultative Reinsurance basis.