Common use of Continuations Clause in Contracts

Continuations. If a Reinsured Policy is converted, exchanged or internally replaced the Company will promptly notify the Reinsurer. Such non-underwritten policy arising from the conversion, exchange or replacement, will continue to be reinsured with the Reinsurer. The amount to be reinsured will be determined on the same basis as used for the original policy but will not exceed the amount reinsured as of the date of conversion unless mutually agreed otherwise. If the policy arising from a conversion, exchange or replacement is on a plan that is not covered by any reinsurance agreement with the Reinsurer, reinsurance will be on a YRT basis using the YRT rates specified in Exhibit C-1, at the attained age and duration of the original policy. A conversion, exchange or replacement that is fully underwritten shall be treated as new business. The above terms will apply unless specified otherwise in Exhibit C-1. A policy resulting from a conversion, exchange or replacement of a policy that was originally underwritten by First-Penn Pacific Life Insurance Company of Ft. Xxxxx Indiana prior to 1/1/2001 shall be reinsured under this agreement under the terms of Article 7.1 of this agreement. Unless mutually agreed otherwise, any other policies that had been reinsured with another reinsurer and which convert to a plan covered under this Agreement will not be reinsured with the Reinsurer.