Common use of DAC Adjustment Clause in Contracts

DAC Adjustment. (a) For purposes of this Agreement, the term “DAC Adjustment” is calculated as follows: First, for each taxable year with respect to each category of Coinsured Contracts, “the gross amount incurred by the reinsurer with respect to this Agreement” (as defined in Section 1.848-2(f)(2)(i)(A) of the Income Tax Regulations) for such category (but not including any DAC Adjustment incurred in such year) is multiplied by the applicable percentage set forth in Section 848 (c)(1) of the Code for such category. The sum, if any, from the preceding sentence is then reduced by the amortization allowed Cedent under Section 848(a)(2) of the Code for such category, but only with regard to amounts capitalized per this Agreement under Section 1.848-2(f)(2)(i)(A). The result for a category, whether positive or negative, is then multiplied by the quotient of: tr/(1-(tr x (1+Y))), where tr = the maximum applicable marginal corporate federal income tax rate (as defined in Section 11(b)(1)(D) of the Code) for the taxable year, and Y = the applicable percentage set forth in Section 848(c)(1) for such category of Coinsured Contracts. The aggregate amount of such calculations for all categories of Coinsured Contracts for a taxable year (whether positive or negative) is the DAC Adjustment for the year.

DAC Adjustment. (a) For purposes of this Agreement, the term “"DAC Adjustment” " is calculated as follows: First, for each taxable year with respect to each category of Coinsured Contracts, “"the gross amount incurred by the reinsurer with respect to this Agreement” " (as defined in Section section 1.848-2(f)(2)(i)(A) of the Income Tax Regulations) for such category (but not including any DAC Adjustment incurred in such year) is multiplied by the applicable percentage set forth in Section section 848 (c)(1) of the Code for such category. The sum, if any, from the preceding sentence is then reduced by the amortization allowed Cedent under Section section 848(a)(2) of the Code for such category, but only with regard to amounts capitalized per this Agreement under Section section 1.848-2(f)(2)(i)(A). The result for a category, whether positive or negative, is then multiplied by the quotient of: tr/(1-(tr x (1+Y))), where tr = the maximum applicable marginal corporate federal income tax rate (as defined in Section section 11(b)(1)(D) of the Code) for the taxable year, and Y = the applicable percentage set forth in Section section 848(c)(1) for such category of Coinsured Contracts. The aggregate amount of such calculations for all categories of Coinsured Contracts for a taxable year (whether positive or negative) is the DAC Adjustment for the year.

DAC Adjustment. (a) For purposes of this Agreement, the -------------- term “"DAC Adjustment” " is calculated as follows: First, for each taxable year with respect to each category of Coinsured ContractsPolicies, “"the gross amount incurred by the reinsurer with respect to this Agreement” " (as defined in Section 1.848-1.848- 2(f)(2)(i)(A) of the Income Tax regulations (the "Regulations") under the Internal Revenue Code of 1986, as amended (the "Code"), for such category (but not including any DAC Adjustment incurred in such year) is multiplied by the applicable percentage set forth in Section 848 (c)(1) of the Code for such category. The sumamount, if any, from the preceding sentence for a category of Policies is then reduced by the amortization allowed Cedent the Company under Section 848(a)(2) of the Code for such category, but only with amount (without regard to amounts capitalized per this Agreement under Section 1.848-2(f)(2)(i)(Aany payment of any DAC Adjustment). The result for a category, whether positive or negative, is then multiplied by the quotient of: tr/(1-(tr x (1+Y))), where tr = the maximum applicable marginal corporate federal income tax rate (as defined in Section 11(b)(1)(D) of the Code) for the taxable year, and Y = the applicable percentage set forth in Section 848(c)(1) for such category of Coinsured ContractsPolicies. The aggregate amount of such calculations for all categories of Coinsured Contracts Policies for a taxable year (whether positive or negative) is the DAC Adjustment for the year.

DAC Adjustment. (a) For purposes of this Agreement, the term “"DAC Adjustment” " is calculated as follows: First, for each taxable year with respect to each category of Coinsured Contracts, “"the gross amount incurred by the reinsurer with respect to this Agreement” " (as defined in Section 1.848-2(f)(2)(i)(A) of the Income Tax Regulations) for such category (but not including any DAC Adjustment incurred in such year) is multiplied by the applicable percentage set forth in Section 848 (c)(1) of the Code for such category. The sum, if any, from the preceding sentence is then reduced by the amortization allowed Cedent under Section 848(a)(2) of the Code for such category, but only with regard to amounts capitalized per this Agreement under Section 1.848-2(f)(2)(i)(A). The result for a category, whether positive or negative, is then multiplied by the quotient of: tr/(1-(tr x (1+Y))), where tr = the maximum applicable marginal corporate federal income tax rate (as defined in Section 11(b)(1)(D) of the Code) for the taxable year, and Y = the applicable percentage set forth in Section 848(c)(1) for such category of Coinsured Contracts. The aggregate amount of such calculations for all categories of Coinsured Contracts for a taxable year (whether positive or negative) is the DAC Adjustment for the year.