Common use of INCREASE IN RETENTION Clause in Contracts

INCREASE IN RETENTION. If the Recapture Triggering Event is an increase in the Company’s retention on the Covered Policies as provided in Article V, Section 1(f) above, the Company shall give the Reinsurer ninety (90) calendar days written notice prior to the effective date of the recapture. The Company may apply the new retention to existing reinsurance and reduce the reinsurance in force, in accordance with the following rules: (a) The portion of the business recaptured has satisfied the minimum in-force period requirements outlined in Exhibit B.18. (b) Recapture may be made if the Company retained its quota share in accordance with Exhibit B.5 for the plan, age and mortality rating at the time the Covered Policy was issued. Any class of fully reinsured business or any classes of risks for which the Company established special retention limits less than those set forth in this Agreement at the time the Covered Policy was issued are not eligible for reduction. (c) Such reductions shall be made on the next policy anniversary of each cession affected from the effective date of recapture set forth in the recapture notice from the Company to the Reinsurer or, reductions may be made according to a “one-time” effective date of recapture if agreed to by the Reinsurer. (d) Recapture will be in the form of an increase in the Company’s retained quota share and a decrease in the quota share percentage ceded to the pool. This decrease will apply to all such in force business reinsured under this Agreement provided the requirements set forth in paragraphs 4. (a) and (b) above are satisfied. (e) For a conversion policy, the duration for the recapture period will be measured from the policy date of the original Covered Policy. (f) Recapture as provided herein shall be optional with the Company, but if any reinsurance is recaptured, all reinsurance eligible for recapture under the provisions of this Article V must be recaptured. If there is reinsurance with other reinsurers on risks eligible for recapture, the necessary reduction is to be applied pro rata to the total outstanding reinsurance with all reinsurers. (g) The amount of reinsurance eligible for recapture is based on the reinsurance net amount at risk as of the date of recapture. (h) The Reinsurer shall not be liable, after the effective date of recapture, for any cessions or portions of such cessions eligible for recapture, which the Company overlooked. The Reinsurer shall be liable only for a credit of the premiums received after the recapture date, less any allowances (if applicable) and without interest.

INCREASE IN RETENTION. A. If the Recapture Triggering Event is Ceding Company should increase the retention limits as listed in Exhibit II, prompt written notice of the increase must be given to the Reinsurer. B. In the event of an increase in the Company’s retention on the Covered Policies as provided in Article V, Section 1(f) aboveretention, the Ceding Company shall give will have the option of recapturing the reinsurance up to the increased retention under this Agreement. The Ceding Company may exercise its option to recapture by giving written notice to the Reinsurer ninety within (90) calendar ninety days written notice prior to after the effective date of the recapture. The increase. C. Whenever the Ceding Company may apply increases its maximum retention limits over the new retention to existing reinsurance and reduce the reinsurance in forceCeding Company's Maximum Limits of Retention, in accordance with the following rules: (a) The portion of the business recaptured has satisfied the minimum in-force period requirements outlined as set forth in Exhibit B.18. II, the Ceding Company has the option to recapture certain risk amounts. If the Ceding Company has maintained Fac for Single Life Excess Pool Between HLAIC and Canada Life Effective 4/01/2003 its maximum stated retention (bnot a special retention limit) Recapture may be made if the Company retained its quota share in accordance with Exhibit B.5 for the planplan and the insured's issue age, age sex, and mortality rating classification in effect at the time the Covered Policy reinsurance was issued. Any class of fully reinsured business ceded to the Reinsurer, or any classes of risks for which if the Ceding Company established special did not retain insurance on the life, it may apply its increased retention limits less than those set forth to reduce the amount of reinsurance as follows: 1. The reduction in this Agreement at the time the Covered Policy was issued are not eligible for reduction. (c) Such reductions shall be made reinsurance will become effective on the next annual premium anniversary after the individual policy anniversary of each cession affected from has been inforce for at least twenty (20) years. 2. If more than one policy per life is eligible for recapture, then the effective eligible policies may be recaptured beginning with the policy with the earliest issue date of recapture set forth and continuing in the recapture notice from the Company chronological order according to the Reinsurer or, reductions may be made according to a “one-time” effective date of recapture if agreed to by the Reinsurerremaining policies' issue dates. 3. It is understood that the Ceding Company will not re-cede the business once it has been recaptured for a period of at least three (d3) Recapture will be in years unless the form of an increase in the Company’s retained quota share and a decrease in the quota share percentage ceded Reinsurer agrees to the pool. This decrease will apply to all such in force business reinsured under accept this Agreement provided the requirements set forth in paragraphs business. 4. (a) and (b) above are satisfied. (e) For a conversion policy, the duration for the recapture period will be measured from the If any reinsured policy date of the original Covered Policy. (f) Recapture as provided herein shall be optional with the Company, but if any reinsurance is recaptured, all reinsurance reinsured policies eligible for recapture under the provisions of this Article V must be recaptured. If there is reinsurance with other reinsurers on risks eligible for recapture, the necessary reduction is to be applied pro rata recaptured up to the Ceding Company's new maximum retention limits in a consistent manner and the Ceding Company must increase its total outstanding reinsurance with all reinsurers. (g) The amount of reinsurance eligible for recapture is based insurance on the reinsurance net amount at risk as of the date of recapture. (h) The Reinsurer shall not be liable, after the effective date of recapture, for any cessions or portions of such cessions eligible for recapture, which the Company overlookedeach reinsured life. The Reinsurer shall be liable only Ceding Company may not revoke its election to recapture for a credit of the premiums received after the recapture date, less any allowances (if applicable) and without interestpolicies becoming eligible at future anniversaries.

INCREASE IN RETENTION. If the Recapture Triggering Event is an increase in the Company’s retention on the Covered Policies as provided in Article V, Section 1(f) above, the Company shall give the Reinsurer ninety (90) calendar days written notice prior to the effective date of the recapture. The Company may apply the new retention to existing reinsurance and reduce the reinsurance in force, in accordance with the following rules: (a) The portion of the business recaptured has satisfied the minimum in-force period requirements outlined in Exhibit B.18. (b) Recapture may be made if the Company retained its quota share in accordance with Exhibit B.5 for the plan, age and mortality rating at the time the Covered Policy was issued. Any class of fully reinsured business or any classes of risks for which the Company established special retention limits less than those set forth in this Agreement at the time the Covered Policy was issued are not eligible for reduction. (c) Such reductions shall be made on the next policy anniversary of each cession affected from the effective date of recapture set forth in the recapture notice from the Company to the Reinsurer or, reductions may be made according to a “one-time” effective date of recapture if agreed to by the Reinsurer. (d) Recapture will be in the form of an increase in the Company’s retained quota share and a decrease in the quota share percentage ceded to the pool. This decrease will apply to all such in force business reinsured under this Agreement provided the requirements set forth in paragraphs 4. (a) and (b) above are satisfied. (e) For a conversion policy, the duration for the recapture period will be measured from the policy date of the original Covered Policy. (f) Recapture as provided herein shall be optional with the Company, but if any reinsurance is recaptured, all reinsurance eligible for recapture under the provisions of this Article V must be recaptured. If there is reinsurance with other reinsurers on risks eligible for recapture, the necessary reduction is to be applied pro rata to the total outstanding reinsurance with all reinsurers. (g) The amount of reinsurance eligible for recapture is based on the reinsurance net amount at risk as of the date of recapture. (h) The Reinsurer shall not be liable, after the effective date of recapture, for any cessions or portions of such cessions eligible for recapture, which the Company overlooked. The Reinsurer shall be liable only for a credit of the premiums received after the recapture date, less any allowances (if applicable) and without interest.

INCREASE IN RETENTION. A. If the Recapture Triggering Event is Ceding Company should increase the retention limits as listed in Exhibit II, prompt written notice of the increase must be given to the Reinsurer. B. In the event of an increase in the Company’s retention on the Covered Policies as provided in Article V, Section 1(f) aboveretention, the Ceding Company shall give will have the option of recapturing the reinsurance up to the increased retention under this Agreement. The Ceding Company may exercise its option to recapture by giving written notice to the Reinsurer ninety within (90) calendar ninety days written notice prior to after the effective date of the recapture. The increase. C. Whenever the Ceding Company may apply increases its maximum retention limits over the new retention to existing reinsurance and reduce the reinsurance in forceCeding Company's Maximum Limits of Retention, in accordance with the following rules: (a) The portion of the business recaptured has satisfied the minimum in-force period requirements outlined as set forth in Exhibit B.18. II, the Ceding Company has the option to recapture certain risk amounts. If the Ceding Company has maintained Fac for Single Life Excess Pool Between HLIC and Canada Life Effective 4/01/2003 its maximum stated retention (bnot a special retention limit) Recapture may be made if the Company retained its quota share in accordance with Exhibit B.5 for the planplan and the insured's issue age, age sex, and mortality rating classification in effect at the time the Covered Policy reinsurance was issued. Any class of fully reinsured business ceded to the Reinsurer, or any classes of risks for which if the Ceding Company established special did not retain insurance on the life, it may apply its increased retention limits less than those set forth to reduce the amount of reinsurance as follows: 1. The reduction in this Agreement at the time the Covered Policy was issued are not eligible for reduction. (c) Such reductions shall be made reinsurance will become effective on the next annual premium anniversary after the individual policy anniversary of each cession affected from has been inforce for at least twenty (20) years. 2. If more than one policy per life is eligible for recapture, then the effective eligible policies may be recaptured beginning with the policy with the earliest issue date of recapture set forth and continuing in the recapture notice from the Company chronological order according to the Reinsurer or, reductions may be made according to a “one-time” effective date of recapture if agreed to by the Reinsurerremaining policies' issue dates. 3. It is understood that the Ceding Company will not re-cede the business once it has been recaptured for a period of at least three (d3) Recapture will be in years unless the form of an increase in the Company’s retained quota share and a decrease in the quota share percentage ceded Reinsurer agrees to the pool. This decrease will apply to all such in force business reinsured under accept this Agreement provided the requirements set forth in paragraphs business. 4. (a) and (b) above are satisfied. (e) For a conversion policy, the duration for the recapture period will be measured from the If any reinsured policy date of the original Covered Policy. (f) Recapture as provided herein shall be optional with the Company, but if any reinsurance is recaptured, all reinsurance reinsured policies eligible for recapture under the provisions of this Article V must be recaptured. If there is reinsurance with other reinsurers on risks eligible for recapture, the necessary reduction is to be applied pro rata recaptured up to the Ceding Company's new maximum retention limits in a consistent manner and the Ceding Company must increase its total outstanding reinsurance with all reinsurers. (g) The amount of reinsurance eligible for recapture is based insurance on the reinsurance net amount at risk as of the date of recapture. (h) The Reinsurer shall not be liable, after the effective date of recapture, for any cessions or portions of such cessions eligible for recapture, which the Company overlookedeach reinsured life. The Reinsurer shall be liable only Ceding Company may not revoke its election to recapture for a credit of the premiums received after the recapture date, less any allowances (if applicable) and without interestpolicies becoming eligible at future anniversaries.

INCREASE IN RETENTION. If the Recapture Triggering Event is an increase in the Company’s retention on the Covered Policies as provided in Article V, Section 1(f) above, the Company shall give the Reinsurer ninety (90) calendar days written notice prior to the effective date of the recapture. The Company may apply the new retention to existing reinsurance and reduce the reinsurance in force, in accordance with the following rules: (a) The portion of the business recaptured has satisfied the minimum in-force period requirements outlined in Exhibit B.18. (b) Recapture may be made if the Company retained its quota share in accordance with Exhibit B.5 for the plan, age and mortality rating at the time the Covered Policy was issued. Any class of fully reinsured business or any classes of risks for which the Company established special retention limits less than those set forth in this Agreement at the time the Covered Policy was issued are not eligible for reduction. (c) Such reductions shall be made on the next policy anniversary of each cession affected from the effective date of recapture set forth in the recapture notice from the Company to the Reinsurer or, reductions may be made according to a “one-time” effective date of recapture if agreed to by the Reinsurer. (d) Recapture will be in the form of an increase in the Company’s retained quota share and a decrease in the quota share percentage ceded to the pool. This decrease will apply to all such in force business reinsured under this Agreement provided the requirements set forth in paragraphs 4. (a) and (b) above are satisfied. (e) For a conversion policy, the duration for the recapture period will be measured from the policy date of the original Covered Policy. (f) Recapture as provided herein shall be optional with the Company, but if any reinsurance is recaptured, all reinsurance eligible for recapture under the provisions of this Article V must be recaptured. If there is reinsurance with other reinsurers on risks eligible for recapture, the necessary reduction is to be applied pro rata to the total outstanding reinsurance with all reinsurers. (g) The amount of reinsurance eligible for recapture is based on the reinsurance net amount at risk as of the date of recapture. (h) The Reinsurer shall not be liable, after the effective date of recapture, for any cessions or portions of such cessions eligible for recapture, which the Company overlooked. The Reinsurer shall be liable only for a credit of the premiums received after the recapture date, less any allowances (if applicable) and without interest. (i) The Company shall pay the Reinsurer a recapture fee according to the schedule below based on the duration of the policy at the time of recapture. The recapture fee is calculated [*]. All payments and fees must be paid within ninety (90) days of the mutually agreed upon recapture date.

INCREASE IN RETENTION. If the Recapture Triggering Event is an The reinsurance under this Agreement shall be maintained in force without reduction except as specifically provided for elsewhere in this Agreement. The Company may increase in the Company’s its limits of retention on the Covered Policies as provided in Article V, Section 1(f) above, the Company shall give new business being issued at any time by giving written notice to the Reinsurer ninety (90) calendar days written notice prior to of the new limits of retention and the effective date of the recapturesuch new retention schedule. The Company's retention limits are set out in Exhibit D. RECAPTURE The Company may apply the new limits of retention to existing reinsurance and reduce the reinsurance in force, force in accordance with the following rules: (a) The portion Company shall give the Reinsurer written notice of its intention to recapture within 90 days of the business recaptured has satisfied effective date of the minimum in-force period requirements outlined increase in Exhibit B.18its retention. (b) Recapture Such reductions shall be made on the next anniversary of each cessions affected but no reduction shall be made until such reinsurance has been in force for the period stated in Exhibit C. For a conversion policy or re-entry, the recapture terms of the original policy will apply and the duration for the recapture period will be measured from the effective date of the original policy. (c) A reduction may be made only if the Company retained its quota share in accordance with Exhibit B.5 full retention for the plan, age and mortality rating at the time the Covered Policy policy was issued. . (d) Any class of fully reinsured business or any classes of risks for which the Company established special retention limits less than those set forth in this Agreement the Company's full retention limits for the plan, age and mortality rating at the time the Covered Policy policy was issued issued, are not eligible for reduction. (ce) Such reductions shall be made on the next policy anniversary of each cession affected from the effective date of recapture set forth in the recapture notice from the Company to the Reinsurer or, reductions A reduction may be made according to a “one-time” effective date of recapture only if agreed to by the Reinsurer. (d) Recapture will be in the form of an Company has applied its increase in the Company’s retained quota share and retention in a decrease in the quota share percentage ceded to the pool. This decrease will apply consistent manner to all such in force business reinsured under this Agreement provided the requirements set forth in paragraphs 4. (a) and (b) above are satisfied. (e) For a conversion policy, the duration for the recapture period will be measured from the policy date categories of the original Covered Policyits normal retention limits. (f) No reduction shall be made if the Company has either obtained or increased stop loss reinsurance coverage as justification for the increase in retention. In applying its new retention to existing reinsurance, the rating at the time of issue and the issue age of the existing reinsurance shall be used to determine the amount of the Company's new retention. Recapture as provided herein shall be optional with the Company, but if any reinsurance is recaptured, all reinsurance is eligible for recapture recaptured under the provisions of this Article V must be recaptured. If there is reinsurance with in other reinsurers companies on risks eligible for recapture, the necessary reduction is to be applied pro rata to the total outstanding reinsurance with all reinsurers. (g) reinsurance. The amount of reinsurance eligible for recapture is based on the reinsurance net amount at risk as of the date of recapture. (h) . The Reinsurer shall not be liable, after the effective date of recapture, for any cessions or portions of such cessions eligible for recapture, which the Company has overlooked. The Reinsurer shall be liable only for a credit accredit of the premiums received after the recapture date, less any allowances commission or allowance and with interest. If there is a Waiver of Premium (W.P.) claim in effect when recapture takes place, the W.P. claim shall stay in effect until the W.P. claim terminates. The Reinsurer shall not be liable for any other benefits, including the basic life risk, that are eligible for recapture. All such eligible benefits shall be recaptured as if applicable) there was no W.P. claim. The terms and without interestconditions for the Company to recapture reinsurance in force under this Agreement due to the insolvency of the Reinsurer are set out in the Insovency clause in Article XI of the Agreement. If the Company transfers business which is reinsured under this Agreement, to a successor company then the successor company has the option to recapture the reinsurance, in accordance with the recapture criteria outlined is this Article, only if the successor company has a higher retention limit than the Company.

INCREASE IN RETENTION. If the Recapture Triggering Event is an increase in the Company’s retention on the Covered Policies as provided in Article V, Section 1(f) above, the Company shall give the Reinsurer ninety (90) calendar days written notice prior to the effective date of the recapture. The Company may apply the new retention to existing reinsurance and reduce the reinsurance in force, in accordance with the following rules: (a) The portion of the business recaptured has satisfied the minimum in-force period requirements outlined in Exhibit B.18. (b) Recapture may be made if the Company retained its quota share in accordance with Exhibit B.5 for the plan, age and mortality rating at the time the Covered Policy was issued. Any class of fully reinsured business or any classes of risks for which the Company established special retention limits less than those set forth in this Agreement at the time the Covered Policy was issued are not eligible for reduction. (c) Such reductions shall be made on the next policy anniversary of each cession affected from the effective date of recapture set forth in the recapture notice from the Company to the Reinsurer or, reductions may be made according to a “one-time” effective date of recapture if agreed to by the Reinsurer. (d) Recapture will be in the form of an increase in the Company’s retained quota share and a decrease in the quota share percentage ceded to the pool. This decrease will apply to all such in force business reinsured under this Agreement provided the requirements set forth in paragraphs 4. (a) and (b) above are satisfied. (e) For a conversion policy, the duration for the recapture period will be measured from the policy date of the original Covered Policy. (f) Recapture as provided herein shall be optional with the Company, but if any reinsurance is recaptured, all reinsurance eligible for recapture under the provisions of this Article V must be recaptured. If there is reinsurance with other reinsurers on risks eligible for recapture, the necessary reduction is to be applied pro rata to the total outstanding reinsurance with all reinsurers. (g) The amount of reinsurance eligible for recapture is based on the reinsurance net amount at risk as of the date of recapture. (h) The Reinsurer shall not be liable, after the effective date of recapture, for any cessions or portions of such cessions eligible for recapture, which the Company overlooked. The Reinsurer shall be liable only for a credit of the premiums received after the recapture date, less any allowances (if applicable) and without interest. (i) The Company shall pay the Reinsurer a recapture fee according to the schedule below based on the duration of the policy at the time of recapture. The recapture fee is calculated [*as ] All payments and fees must be paid within ninety (90) days of the mutually agreed upon recapture date.

INCREASE IN RETENTION. If (Continued) B. When the Recapture Triggering Event is an increase in Ceding Company increases its dollar retention limit the Company’s retention amount of inforce reinsured policies may be reduced provided: 1. The Ceding Company gives the Reinsurer written notice of its intention to ; and 2. The amount eligible for will be the difference between the amount originally retained and the amount the Ceding Company would have retained on the Covered Policies same quota share basis as provided referenced in Article V, Section 1(f) above, the Company shall give the Reinsurer ninety (90) calendar days written notice prior to the effective date of the recapture. The Company may apply Schedule B – Reinsurance Limits had the new retention limit schedule been in effect at the time of issue. In applying its increased retention limits to existing reinsurance and reduce reinsured policies, the reinsurance in force, in accordance with the following rules: (a) The portion of the business recaptured has satisfied the minimum in-force period requirements outlined in Exhibit B.18. (b) Recapture may be made if the Company retained its quota share in accordance with Exhibit B.5 for the plan, age and mortality rating at the time the Covered Policy was issued. Any class of fully reinsured business or any classes of risks for which the Company established special retention limits less than those set forth in this Agreement at the time the Covered Policy was issued are not eligible for reduction. (c) Such reductions shall be made on the next policy anniversary of each cession affected from the effective date of recapture set forth in the recapture notice from the Company to the Reinsurer or, reductions may be made according to a “one-time” effective date of recapture if agreed to by the Reinsurer. (d) Recapture issue will be in used to determine the form amount of an increase in the Ceding Company’s retained quota share and a decrease in the quota share percentage ceded to the poolincreased retention. This decrease will apply to all such in force business reinsured under this Agreement provided the requirements set forth in paragraphs 4. (a) and (b) above are satisfied. (e) For a conversion policy, the duration for the recapture period will be measured from the policy date of the original Covered Policy. (f) Recapture as provided herein shall be optional with the Company, but if any reinsurance is recaptured, all reinsurance eligible for recapture under the provisions of this Article V must be recaptured. If there is reinsurance with other reinsurers on risks eligible for recapture, the necessary reduction is to be applied pro rata to the total outstanding reinsurance with all reinsurers. (g) The amount of reinsurance eligible for recapture is based on the reinsurance net amount at risk as of the date of recapture. (h) . No business will be eligible for reduction under this Article unless the Ceding Company kept its maximum retention as set forth in the retention schedule in effect at the time the insurance was issued. The amounts d shall be sufficient to increase the Ceding Company’s retention to the new limits. If there are other reinsurers, the reduction on each risk shall be divided according to each reinsurer’s portion of the total reinsurance on the risk. If the reinsurance is reduced on any risk, similar reductions shall be made on all risks eligible for . The effective date of the reduction in reinsurance on a policy eligible for such reduction shall be . The Ceding Company may not revoke its election to for reinsured policies becoming eligible at future anniversaries. No of reinsured policies will occur if the Ceding Company has either obtained or increased stop loss reinsurance coverage as justification for the increase in retention. The Reinsurer shall will not be liable, after the effective date of recapture, for any cessions reinsured policies or portions of such cessions reinsured policies eligible for recapture, which that the Ceding Company has overlooked. The Reinsurer shall will be liable only for a credit of the premiums premiums, received after the recapture date, less any allowances (if applicable) and without interestallowance.

INCREASE IN RETENTION. If the Recapture Triggering Event is an increase in the Company’s retention on the Covered Policies as provided in Article V, Section 1(fsection 1(d) above, the Company shall give the Reinsurer no less than ninety (90) calendar days written notice prior to the effective date of the recapture. The Company may apply the new retention to existing reinsurance and reduce the reinsurance in force, in accordance with the following rules: (a) The portion of the business recaptured has satisfied the minimum in-force period requirements outlined in Exhibit B.18. (b) Recapture may be made if the Company retained its quota share in accordance with Exhibit B.5 for the plan, age and mortality rating at the time the Covered Policy was issued. Any class of fully reinsured business or any classes of risks for which the Company established special retention limits less than those set forth in this Agreement at the time the Covered Policy was issued are not eligible for reduction. (c) Such reductions shall be made on the next policy anniversary of each cession affected from the effective date of recapture set forth in the recapture notice from the Company to the Reinsurer or, reductions may be made according to a “one-time” effective date of recapture if agreed to by the Reinsurer. (d) Recapture will be in the form of an increase in the Company’s retained quota share and a decrease in the quota share percentage ceded to the pool. This decrease will apply to all such in force business reinsured under this Agreement provided the requirements set forth in paragraphs 4. (a) and (b) above are satisfied. (e) For a conversion policy, the duration for the recapture period will be measured from the policy date of the original Covered Policy. (f) Recapture as provided herein shall be optional with the Company, but if any reinsurance is recaptured, all reinsurance eligible for recapture under the provisions of this Article V V, section 4 must be recaptured. If there is reinsurance with other reinsurers on risks eligible for recapture, the necessary reduction is to be applied pro rata to the total outstanding reinsurance with all reinsurers. (g) The amount of reinsurance eligible for recapture is based on the reinsurance net amount at risk as of the date of recapture. (h) The Reinsurer shall not be liable, after the effective date of recapture, for any cessions or portions of such cessions eligible for recapture, which the Company overlooked. The Reinsurer shall be liable only for a credit of the premiums received after the recapture date, less any allowances (if applicable) and without interest.