Exceptions to Automatic Coverage Clause Samples

Exceptions to Automatic Coverage. Unless REINSURER has specifically agreed to such reinsurance in writing, no reinsurance may be ceded automatically to this Agreement where: 1. for single life Policies, the substandard mortality rating assessed to the risk exceeds Class P (500%) or its actuarial equivalent on an extra premium basis; or 2. for second-to-die Policies, the mortality rating does not conform to the insurability parameters set forth in the CEDING COMPANY’s underwriting guidelines that have been previously reviewed by the REINSURER, as attached in Exhibit IV; or 3. the insurance is issued as a group conversion, a non-contractual conversion, rollover or policy exchange, or is issued under any program where either full current evidence of insurability consistent with the amount of insurance and plan of insurance is not obtained or where conventional selection criteria are not applied in underwriting the risk; or 4. the Policy does not exclude deaths from suicide for at least a two-year period (or lesser time if required by law) or does not provide for two years of contestability; or 5. the agent compensation attributable to the Policy is based on a modified agent compensation schedule.