Common use of Face Amount Basis Clause in Contracts

Face Amount Basis. When the reinsurer is participating in the accumulation of surrender values on a policy, or when there are no surrender values on a policy, the reinsurance amount shall be based on the face amount of the policy. The overriding principle involved is that OPTIMUM RE and THE COMPANY will each continue to insure their original proportionate share of the initial face amount.

Face Amount Basis. When the reinsurer Reinsurer is participating in the accumulation of surrender values on a policy, or when there are no surrender values on a policy, the reinsurance amount shall be based on the face amount of the policy. The overriding principle involved is that OPTIMUM RE INVESTORS HERITAGE and THE COMPANY will each continue to insure their original proportionate share of the initial face amount.