Common use of Facultative Coverage Clause in Contracts

Facultative Coverage. The reinsurance will be on a facultative basis if the Company receives an application for a policy covered under this Agreement for which: 2.2.1 The total of the new reinsurance required and the amount already reinsured on that life under this Agreement and all other life agreements between the Reinsurer and the Company, exceeds the Automatic Acceptance Limits set out in Exhibit E; or 2.2.2 The Company intends to retain less than the Retention Limit set out in Exhibit D taking into account the applicant's age and mortality rating or 2.2.3 The amount of insurance in force, including any coverage to be replaced, plus the amount currently applied for on that life in all companies exceeds the Jumbo Limit stated in Exhibit E; or 2.2.4 The application is on a life for which an application had been submitted by Company on a facultative basis to the Reinsurer or any other reinsurer within the last --- years, unless the reason for submitting facultatively no longer applies. The reinsurance will also be on a facultative basis if the Company submits an application to the Reinsurer for its consideration on a plan or rider which qualifies for automatic reinsurance under this Agreement. The relevant terms and condition of the Agreement will apply to those facultative offers made by the Reinsurer which are accepted by the Company.

Facultative Coverage. The reinsurance will be on a facultative basis if the Company receives an application for a policy covered under this Agreement for which: 2.2.1 The total of the new reinsurance required and the amount already reinsured on that life under this Agreement and all other life agreements between the Reinsurer and the Company, exceeds the Automatic Acceptance Limits set out in Exhibit E; or 2.2.2 The Company intends to retain less than the Retention Limit set out in Exhibit D taking into account the applicant's age and mortality rating rating; or 2.2.3 The amount of insurance in force, including any coverage to be replaced, plus the amount currently applied for on that life in all companies exceeds the Jumbo Limit stated in Exhibit E; or 2.2.4 The application is on a life for which an application had been submitted by the Company on a facultative basis to the Reinsurer or any other reinsurer within the last --- 3 years, unless the reason for submitting facultatively no longer applies. The reinsurance will also be on a facultative basis if the Company submits an application to the Reinsurer for its consideration on a plan or rider which qualifies for automatic reinsurance under this Agreement. The relevant terms and condition conditions of the this Agreement will apply to those facultative offers made by the Reinsurer which are accepted by the Company.