Common use of Funds Withheld Adjustment Clause in Contracts

Funds Withheld Adjustment. The “Funds Withheld Adjustment” shall be calculated for each Accounting Period as [(1) – (2) – (3)], where: (1) equals the Investment Credit on the Funds Withheld Assets; (2) equals (i) if the Ceding Company calculates interest maintenance reserves monthly, the change in the Coinsurance Reserve for the Accounting Period (where the change equals the Coinsurance Reserve at the end of the Accounting Period minus the Coinsurance Reserve at the beginning of the Accounting Period); or (ii) if the Ceding Company calculates interest maintenance reserves quarterly, (a) for each Accounting Period which does not correspond to the last month of a calendar quarter, zero; and (b) for each Accounting Period which corresponds to the last month of a calendar quarter, the change in the IMR Amount for the calendar quarter (where the change equals the IMR Amount at the end of the calendar quarter, including any amortization of the IMR Amount for the Accounting Period, minus the IMR Amount at the beginning of the calendar quarter); and (3) equals the change in the IMR Amount for the Accounting Period (where the change equals the IMR Amount at the end of the Accounting Period, including any amortization of the IMR Amount for the Accounting Period as well as any Xxxxxxx Resolution Life Insurance Company and TR Re, Ltd. Annuity Reinsurance Agreement Effective October 1, 2021 Page 16 Post-Effective IMR generated during the Accounting Period, minus the IMR Amount at the beginning of the Accounting Period).