Common use of DEFERRED ACQUISITION COST TAX Clause in Contracts

DEFERRED ACQUISITION COST TAX. THE COMPANY and OPTIMUM RE mutually agree to the following pursuant to Section 1.848-2(g)(8) of the Income Tax Regulations issued December 29, 1992 of the Internal Revenue Code of 1986. 1. The Party with net positive consideration for the Agreement(s) for each taxable year shall compute specified policy acquisition expenses without regard to the general deductions limitation of Section 848(c)(1). 2. THE COMPANY and OPTIMUM RE agree to exchange information pertaining to the amount of net consideration as determined for all reinsurance agreements in force between them to ensure consistency or as may otherwise be required by the Internal Revenue Service. 3. THE COMPANY will submit a Schedule to OPTIMUM RE by June 1st of its calculation of the net consideration for the preceding calendar year. This calculation shall be accompanied by a statement signed by an officer of THE COMPANY stating that THE COMPANY will report such net consideration in its tax return for the preceding calendar year. 4. OPTIMUM RE shall advise THE COMPANY if it disagrees with the amounts provided and OPTIMUM RE and THE COMPANY agree to amicably resolve any difference. The amounts provided by THE COMPANY shall be presumed correct if it does not receive a response from OPTIMUM RE at the latest 30 days after receipt by OPTIMUM RE of these amounts or by May 30th of the current year.

DEFERRED ACQUISITION COST TAX. THE COMPANY and OPTIMUM RE mutually agree to the following pursuant to Section 1.848-2(g)(8) of the Income Tax Regulations issued December 29, 1992 of the Internal Revenue Code of 1986. 1. The Party with net positive consideration for the Agreement(s) for each taxable year shall compute specified policy acquisition expenses without regard to the general deductions limitation of Section 848(c)(1). 2. THE COMPANY and OPTIMUM RE agree to exchange information pertaining to the amount of net consideration as determined for all reinsurance agreements in force between them to ensure consistency or as may otherwise be required by the Internal Revenue Service. 3. THE COMPANY will submit a Schedule schedule to OPTIMUM RE by June May 1st of its calculation of the net consideration for the preceding calendar year. This calculation shall be accompanied by a statement signed by an officer of THE COMPANY stating that THE COMPANY will report such net consideration in its tax return for the preceding calendar year. 4. OPTIMUM RE shall advise THE COMPANY if it disagrees with the amounts provided and OPTIMUM RE and THE COMPANY agree to amicably resolve any difference. The amounts provided by THE COMPANY shall be presumed correct if it does not receive a response from OPTIMUM RE at the latest 30 days after receipt by OPTIMUM RE of these amounts or by May 30th of the current year.

DEFERRED ACQUISITION COST TAX. THE COMPANY and OPTIMUM RE mutually agree to the following pursuant to Section 1.848-2(g)(8) of the Income Tax Regulations issued December 29, 1992 of the Internal Revenue Code of 1986. 1. The Party with net positive consideration for the Agreement(s) for each taxable year shall compute specified policy acquisition expenses without regard to the general deductions limitation of Section 848(c)(1). 2. THE COMPANY and OPTIMUM RE agree to exchange information pertaining to the amount of net consideration as determined for all reinsurance agreements in force between them to ensure consistency or as may otherwise be required by the Internal Revenue Service. 3. THE COMPANY will submit a Schedule schedule to OPTIMUM RE by June 1st of its calculation of the net consideration for the preceding calendar year. This calculation shall be accompanied by a statement signed by an officer of THE COMPANY stating that THE COMPANY will report such net consideration in its tax return for the preceding calendar year. 4. OPTIMUM RE shall advise THE COMPANY if it disagrees with the amounts provided and OPTIMUM RE and THE COMPANY agree to amicably resolve any difference. The amounts provided by THE COMPANY shall be presumed correct if it does not receive a response from OPTIMUM RE at the latest 30 days after receipt by OPTIMUM RE of these amounts or by May 30th of the current year.

DEFERRED ACQUISITION COST TAX. THE COMPANY and OPTIMUM RE mutually agree to the following pursuant to Section 1.848-2(g)(82(g) (8) of the Income Tax Regulations issued December 29, 1992 1992, under Section 848 of the Internal Revenue Code of 1986. 1. The Party with net positive consideration for the Agreement(s) for each taxable year shall compute specified policy acquisition expenses without regard to the general deductions limitation of Section 848(c)(1848(c) (1). 2. THE COMPANY and OPTIMUM RE agree to exchange information pertaining to the amount of net consideration as determined for all reinsurance agreements in force between them to ensure consistency or as may otherwise be required by the Internal Revenue Service. 3. If requested, THE COMPANY will submit a Schedule schedule to OPTIMUM RE by June May 1st of its calculation of the net consideration for the preceding calendar year. This calculation shall be accompanied by a statement signed by an officer of THE COMPANY stating that THE COMPANY will report such net consideration in its tax return for the preceding calendar year. 4. OPTIMUM RE shall advise THE COMPANY if it disagrees with the amounts provided and OPTIMUM RE and THE COMPANY agree to amicably resolve any difference. The amounts provided by THE COMPANY shall be presumed correct if it does not receive a response from OPTIMUM RE at the latest 30 thirty (30) calendar days after receipt by OPTIMUM RE of these amounts or by May 30th of the current year. 5. THE COMPANY and OPTIMUM RE represent and warrant that each is respectively subject to U.S. taxation under either the provisions of Subchapter L of Chapter 1 or the provisions of Subpart F of Part III of Subchapter N of Chapter 1 of the Internal Revenue Code of 1986.

DEFERRED ACQUISITION COST TAX. THE COMPANY and OPTIMUM RE INVESTORS HERITAGE mutually agree to the following pursuant to Section 1.848-2(g)(8) of the Income Tax Regulations issued December 29, 1992 of the Internal Revenue Code of 1986. 1. The Party with net positive consideration for the Agreement(s) for each taxable year shall compute specified policy acquisition expenses without regard to the general deductions limitation of Section 848(c)(1). 2. THE COMPANY and OPTIMUM RE INVESTORS HERITAGE agree to exchange information pertaining to the amount of net consideration as determined for all reinsurance agreements in force between them to ensure consistency or as may otherwise be required by the Internal Revenue Service. 3. THE COMPANY will submit a Schedule schedule to OPTIMUM RE INVESTORS HERITAGE by June May 1st of its calculation of the net consideration for the preceding calendar year. This calculation shall be accompanied by a statement signed by an officer of THE COMPANY stating that THE COMPANY will report such net consideration in its tax return for the preceding calendar year. 4. OPTIMUM RE INVESTORS HERITAGE shall advise THE COMPANY if it disagrees with the amounts provided and OPTIMUM RE INVESTORS HERITAGE and THE COMPANY agree to amicably resolve any difference. The amounts provided by THE COMPANY shall be presumed correct if it does not receive a response from OPTIMUM RE INVESTORS HERITAGE at the latest 30 days after receipt by OPTIMUM RE INVESTORS HERITAGE of these amounts or by May 30th of the current year.

DEFERRED ACQUISITION COST TAX. THE COMPANY Coinsurer and OPTIMUM RE Ceding mutually agree to the following pursuant to Section 1.848-2(g)(8) of the Income Tax Regulations issued on December 29, 1992 of the Internal Revenue Code of 1986. 1. (a) The Party with net positive consideration for the Agreement(s) for each taxable year shall compute specified policy acquisition expenses without regard to the general deductions limitation of Section 848(c)(1). 2. THE COMPANY (b) Coinsurer and OPTIMUM RE Ceding agree to exchange information pertaining to the amount of net consideration as determined for all reinsurance agreements Agreements in force between them to ensure consistency or as may otherwise be required by the Internal Revenue Service. 3. THE COMPANY (c) Ceding will submit a Schedule schedule to OPTIMUM RE Coinsurer by June April 1st of its calculation of the net consideration for the preceding calendar year. This calculation shall be accompanied by a statement signed by an officer of THE COMPANY Ceding stating that THE COMPANY it will report such net consideration in its tax return for the preceding calendar year. 4. OPTIMUM RE (d) Coinsurer shall advise THE COMPANY Ceding if it disagrees with the amounts provided and OPTIMUM RE Ceding and THE COMPANY Coinsurer agree to amicably resolve any difference. The amounts provided by THE COMPANY Ceding shall be presumed correct if it does not receive a response from OPTIMUM RE at the latest Coinsurer within 30 days after receipt by OPTIMUM RE Coinsurer of these amounts or by May 30th 30 of the current year.