Common use of Declaration  of Non-Guaranteed Elements Clause in Contracts

Declaration  of Non-Guaranteed Elements. (a) Some of the Policies ceded under this Agreement provide that the Company may in its discretion, from time to time, as provided in the policy or contract, declare interest rates, cost of insurance rates or other non-guaranteed elements that are used to determine policy or contract values, excluding the Fixed Account Options and Crediting Rates referred to in Section 2.06 hereof (subject to such exclusion, the "Non-Guaranteed Elements"). During the Reinsurance Period, the Company agrees to set such Non-Guaranteed Elements to be declared on the Po1icies and the effective dates thereof, taking into account the recommendations of the Reinsurer (whether in response to a change proposed by the Company or at the initiative of the Reinsurer) with respect thereto. The Company's acceptance and implementation of such recommendations shall not be unreasonably withheld or delayed. To the extent permitted by Applicable Law, the Company agrees to allow the Reinsurer to notify policyholders and contractholders of such changes and the effective dates thereof. (b) Notwithstanding Section 2.04(a), unless the Company follows the recommendations of the Reinsurer in Section 2.04(a), the Company shall vary Non-Guaranteed Elements under this Agreement only in a manner consistent with the Company's documented procedures in effect on the Effective Time or, in the absence of such documented procedures, in a manner consistent with the historical practices employed by the Company in establishing Non-Guaranteed Elements in respect of the Policies.