Common use of Effect of Reinstatement Clause in Contracts

Effect of Reinstatement. If a reinsured policy which has lapsed for nonpayment of premium is reinstated in accordance with its terms and with Ceding Company rules, Cologne shall be obligated, upon notification of policy reinstatement, to reinstate the pre-existing reinsurance coverage. Upon reinstatement of the reinsurance coverage, the Ceding Company shall pay the reinsurance premiums in arrears with interest at the same rate as the Ceding Company receives under its policy. Changes in Retention and Recapture. Whenever the Ceding Company changes its limits of retention, it shall promptly inform Cologne and Cologne shall be obliged to accept the notice and make it part of this Agreement. At the effective date of this Agreement, the retention limits of the Ceding Company are as shown in Exhibit A. If the Ceding Company increases its retention limits, it shall have the option of applying the increase in retention limits to existing reinsurance and reducing the reinsurance inforce in accordance with the following rules:

Effect of Reinstatement. If a reinsured policy which has lapsed for nonpayment of premium is reinstated in accordance with its terms and with Ceding Company rules, Cologne shall be obligatedshall, upon notification of policy reinstatement, to reinstate the pre-existing reinsurance coverage. Upon reinstatement of the reinsurance coverage, the Ceding Company shall pay the reinsurance premiums in arrears with interest at the same rate as the Ceding Company receives under its policy. Changes in Retention and Recapture. Whenever the Ceding Company changes its limits of retention, it shall promptly inform Cologne and Cologne shall be obliged to accept the notice and make it part of this Agreement. At the effective date of this Agreement, the retention limits of the Ceding Company are as shown in Exhibit A. If the Ceding Company increases its retention limits, it shall have the option of applying the increase in retention limits to existing reinsurance and reducing the reinsurance inforce in accordance with the following rules: