Common use of Extended Term Insurance Clause in Contracts

Extended Term Insurance. If a policy on a risk reinsured with the Pool member(s) is transferred to Extended Term Insurance, the Ceding Company shall immediately inform the Pool member(s). The net amount of reinsurance on such policy will then be the initial amount of the Ceding Company's policy transferred to Extended Term Insurance less the initial amount of the Ceding Company's retention on such policy immediately prior to the date of transfer and less the interpolated cash value on the initial amount of the Extended Term Insurance reinsured with the Pool. member(s). If the reinsurance on such policy was shared with other reinsurers, the new amount of reinsurance with each reinsurer shall be in proportion to the amount in force with each reinsurer immediately prior to the transfer. Reinstatement - If coverage on a risk automatically reinsured with the Pool lapses and is subsequently reinstated under the Ceding Company's regular rules, the reinsurance will be automatically reinstated. If coverage was reinsured on a facultative basis, the Ceding Company will obtain the approval of the Pool member(s)prior to reinstatement if the portion of the coverage reinsured by the Pool member(s) is greater than the portion of the risks retained by the Ceding Company. The Ceding Company shall pay all reinsurance premiums in arrears for the same period the Ceding Company received premiums in arrears under its policy.

Extended Term Insurance. If a policy on a risk reinsured with the Pool member(s) is transferred to Extended Term Insurance, the Ceding Company shall immediately inform the Pool member(s). The net amount of reinsurance on such policy will then be the initial amount of the Ceding Company's policy transferred to Extended Term Insurance less the initial amount of the Ceding Company's retention on such policy immediately prior to the date of transfer and less the interpolated cash value on the initial amount of the Extended Term Insurance reinsured with the Pool. Pool member(s). If the reinsurance on such policy was shared with other reinsurers, the new amount of reinsurance with each reinsurer shall be in proportion to the amount in force with each reinsurer immediately prior to the transfer. Reinstatement - If coverage on a risk automatically reinsured with the Pool lapses and is subsequently reinstated under the Ceding Company's regular rules, the reinsurance will be automatically reinstated. If coverage was reinsured on a facultative basis, the Ceding Company will obtain the approval of the Pool member(s)prior member(s) prior to reinstatement if the portion of the coverage reinsured by the Pool member(s) is greater than the portion of the risks retained by the Ceding Company. The Ceding Company shall pay all reinsurance premiums in arrears for the same period the Ceding Company received premiums in arrears under its policy.