Common use of INCREASE IN RETENTION Clause in Contracts

INCREASE IN RETENTION. A. If the 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 retention, the Ceding Company 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 within (90) ninety days after the effective date of the increase. C. Whenever the Ceding Company increases its maximum retention limits over the Ceding Company's Maximum Limits of Retention, as set forth in Exhibit 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 (not a special retention limit) for the plan and the insured's issue age, sex, and mortality classification in effect at the time the reinsurance was ceded to the Reinsurer, or if the Ceding Company did not retain insurance on the life, it may apply its increased retention limits to reduce the amount of reinsurance as follows: 1. The reduction in reinsurance will become effective on the next annual premium anniversary after the individual policy has been inforce for at least twenty (20) years. 2. If more than one policy per life is eligible for recapture, then the eligible policies may be recaptured beginning with the policy with the earliest issue date and continuing in chronological order according to the remaining 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 (3) years unless the Reinsurer agrees to accept this business. 4. If any reinsured policy is recaptured, all reinsured policies eligible for recapture under the provisions of this Article must be recaptured up to the Ceding Company's new maximum retention limits in a consistent manner and the Ceding Company must increase its total amount of insurance on each reinsured life. The Ceding Company may not revoke its election to recapture for policies becoming eligible at future anniversaries.

INCREASE IN RETENTION. A. If the 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 retention, the Ceding Company 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 within (90) ninety days after the effective date of the increase. C. Whenever the Ceding Company increases its maximum retention limits over the Ceding Company's Maximum Limits of Retention, as set forth in Exhibit 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 HLIC and Canada Life Effective 4/01/2003 its maximum stated retention (not a special retention limit) for the plan and the insured's issue age, sex, and mortality classification in effect at the time the reinsurance was ceded to the Reinsurer, or if the Ceding Company did not retain insurance on the life, it may apply its increased retention limits to reduce the amount of reinsurance as follows: 1. The reduction in reinsurance will become effective on the next annual premium anniversary after the individual policy has been inforce for at least twenty (20) years. 2. If more than one policy per life is eligible for recapture, then the eligible policies may be recaptured beginning with the policy with the earliest issue date and continuing in chronological order according to the remaining 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 (3) years unless the Reinsurer agrees to accept this business. 4. If any reinsured policy is recaptured, all reinsured policies eligible for recapture under the provisions of this Article must be recaptured up to the Ceding Company's new maximum retention limits in a consistent manner and the Ceding Company must increase its total amount of insurance on each reinsured life. The Ceding Company may not revoke its election to recapture for policies becoming eligible at future anniversaries.

INCREASE IN RETENTION. A. If the 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 Recapture Triggering Event is an increase in retentionthe Company’s retention on the Covered Policies as provided in Article V, Section 1(f) above, the Ceding Company 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 shall give the Reinsurer within ninety (90) ninety calendar days after written notice prior to the effective date of the increaserecapture. 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. C. Whenever (b) Recapture may be made if the Ceding Company increases retained its maximum retention limits over the Ceding Company's Maximum Limits of Retention, as set forth quota share in accordance with Exhibit 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 (not a special retention limit) B.5 for the plan and the insured's issue ageplan, sex, age and mortality classification in effect rating at the time the reinsurance 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 Reinsurer, or if pool. This decrease will apply to all such in force business reinsured under this Agreement provided the Ceding Company did not retain insurance on the life, it may apply its increased retention limits to reduce the amount of reinsurance as follows: 1requirements set forth in paragraphs 4. The reduction in reinsurance will become effective on the next annual premium anniversary after the individual policy has been inforce for at least twenty (20a) yearsand (b) above are satisfied. 2. If more than one (e) For a conversion policy, the duration for the recapture period will be measured from the policy per life is eligible for recapture, then date of the eligible policies may original Covered Policy. (f) Recapture as provided herein shall be recaptured beginning optional with the policy with the earliest issue date and continuing in chronological order according to the remaining 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 (3) years unless the Reinsurer agrees to accept this business. 4. If Company, but if any reinsured policy reinsurance is recaptured, all reinsured policies reinsurance eligible for recapture under the provisions of this Article V must be recaptured up recaptured. If there is reinsurance with other reinsurers on risks eligible for recapture, the necessary reduction is to be applied pro rata to the Ceding Company's new maximum retention limits in a consistent manner and the Ceding Company must increase its total amount of insurance on each reinsured life. The Ceding Company may not revoke its election to recapture for policies becoming eligible at future anniversariesoutstanding reinsurance with all reinsurers.

INCREASE IN RETENTION. A. If the 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 Recapture Triggering Event is an increase in retentionthe Company’s retention on the Covered Policies as provided in Article V, Section 1(f) above, the Ceding Company 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 shall give the Reinsurer within ninety (90) ninety calendar days after written notice prior to the effective date of the increaserecapture. 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. C. Whenever (b) Recapture may be made if the Ceding Company increases retained its maximum retention limits over the Ceding Company's Maximum Limits of Retention, as set forth quota share in accordance with Exhibit 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 (not a special retention limit) B.5 for the plan and the insured's issue ageplan, sex, age and mortality classification in effect rating at the time the reinsurance 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 Reinsurer, or if pool. This decrease will apply to all such in force business reinsured under this Agreement provided the Ceding Company did not retain insurance on the life, it may apply its increased retention limits to reduce the amount of reinsurance as follows: 1requirements set forth in paragraphs 4. The reduction in reinsurance will become effective on the next annual premium anniversary after the individual policy has been inforce for at least twenty (20a) yearsand (b) above are satisfied. 2. If more than one (e) For a conversion policy, the duration for the recapture period will be measured from the policy per life is eligible for recapture, then date of the eligible policies may original Covered Policy. (f) Recapture as provided herein shall be recaptured beginning optional with the policy with the earliest issue date and continuing in chronological order according to the remaining 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 (3) years unless the Reinsurer agrees to accept this business. 4. If Company, but if any reinsured policy reinsurance is recaptured, all reinsured policies reinsurance eligible for recapture under the provisions of this Article V must be recaptured up recaptured. If there is reinsurance with other reinsurers on risks eligible for recapture, the necessary reduction is to be applied pro rata 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 insurance reinsurance eligible for recapture is based on each reinsured lifethe 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 Ceding Company may not revoke its election to Reinsurer shall be liable only for a credit of the premiums received after the recapture for policies becoming eligible at future anniversariesdate, less any allowances (if applicable) and without interest.

INCREASE IN RETENTION. A. If the Ceding Company should increase the retention limits The reinsurance under this Agreement shall be maintained in force without reduction except as listed specifically provided for elsewhere in Exhibit II, prompt written notice of the increase must be given to the Reinsurer. B. In the event of an increase in retention, the Ceding Company will have the option of recapturing the reinsurance up to the increased retention under this Agreement. The Ceding Company may exercise increase its option to recapture limits of retention on new business being issued at any time by giving written notice to the Reinsurer of the new limits of retention and the effective date of such 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 reinsurance in force in accordance with the following rules: (a) The Company shall give the Reinsurer written notice of its intention to recapture within (90) ninety 90 days after of the effective date of the increaseincrease in its retention. C. Whenever (b) Such reductions shall be made on the Ceding Company increases its maximum retention limits over next anniversary of each cessions affected but no reduction shall be made until such reinsurance has been in force for the Ceding Company's Maximum Limits of Retention, as set forth period stated in Exhibit IIC. For a conversion policy or re-entry, the Ceding Company has recapture terms of the option to recapture certain risk amounts. If original policy will apply and the Ceding Company has maintained Fac for Single Life Excess Pool Between HLAIC and Canada Life Effective 4/01/2003 its maximum stated retention (not a special retention limit) duration for the plan and recapture period will be measured from the insured's issue ageeffective date of the original policy. (c) A reduction may be made only if the Company retained its full retention for the plan, sex, age and mortality classification in effect rating at the time the reinsurance policy was ceded to issued. (d) Any class of fully reinsured business or any classes of risks for which the ReinsurerCompany established special retention limits less than the Company's full retention limits for the plan, or age and mortality rating at the time the policy was issued, are not eligible for reduction. (e) A reduction may be made only if the Ceding Company did not retain insurance on has applied its increase in retention in a consistent manner to all categories of its normal retention limits. (f) No reduction shall be made if the lifeCompany has either obtained or increased stop loss reinsurance coverage as justification for the increase in retention. In applying its new retention to existing reinsurance, it may apply its increased retention limits the rating at the time of issue and the issue age of the existing reinsurance shall be used to reduce determine the amount of reinsurance the Company's new retention. Recapture as follows: 1. The reduction in reinsurance will become effective on the next annual premium anniversary after the individual policy has been inforce for at least twenty (20) years. 2. If more than one policy per life is eligible for recapture, then the eligible policies may provided herein shall be recaptured beginning optional with the policy with the earliest issue date and continuing in chronological order according to the remaining 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 (3) years unless the Reinsurer agrees to accept this business. 4. If Company, but if any reinsured policy reinsurance is recaptured, all reinsured policies reinsurance is eligible for recapture recaptured under the provisions of this Article must be recaptured up recaptured. If there is reinsurance in other companies on risks eligible for recapture, the necessary reduction is to be applied pro rata to the Ceding Company's new maximum retention limits in a consistent manner and the Ceding Company must increase its total outstanding reinsurance. The amount of insurance reinsurance eligible for recapture is based on each reinsured lifethe reinsurance net amount at risk as of the date of recapture. The Ceding 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 may has overlooked. The Reinsurer shall be liable only for accredit of the premiums received after the recapture date, less any 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 revoke its election 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 there was no W.P. claim. The terms and conditions for the Company to recapture for policies becoming eligible at future anniversariesreinsurance 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. A. If the 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 Recapture Triggering Event is an increase in retentionthe Company’s retention on the Covered Policies as provided in Article V, Section 1(f) above, the Ceding Company 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 shall give the Reinsurer within ninety (90) ninety calendar days after written notice prior to the effective date of the increaserecapture. 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. C. Whenever (b) Recapture may be made if the Ceding Company increases retained its maximum retention limits over the Ceding Company's Maximum Limits of Retention, as set forth quota share in accordance with Exhibit 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 (not a special retention limit) B.5 for the plan and the insured's issue ageplan, sex, age and mortality classification in effect rating at the time the reinsurance 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 Reinsurer, or if pool. This decrease will apply to all such in force business reinsured under this Agreement provided the Ceding Company did not retain insurance on the life, it may apply its increased retention limits to reduce the amount of reinsurance as follows: 1requirements set forth in paragraphs 4. The reduction in reinsurance will become effective on the next annual premium anniversary after the individual policy has been inforce for at least twenty (20a) yearsand (b) above are satisfied. 2. If more than one (e) For a conversion policy, the duration for the recapture period will be measured from the policy per life is eligible for recapture, then date of the eligible policies may original Covered Policy. (f) Recapture as provided herein shall be recaptured beginning optional with the policy with the earliest issue date and continuing in chronological order according to the remaining 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 (3) years unless the Reinsurer agrees to accept this business. 4. If Company, but if any reinsured policy reinsurance is recaptured, all reinsured policies reinsurance eligible for recapture under the provisions of this Article V must be recaptured up recaptured. If there is reinsurance with other reinsurers on risks eligible for recapture, the necessary reduction is to be applied pro rata 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 insurance reinsurance eligible for recapture is based on each reinsured lifethe 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 Ceding 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 may not revoke its election 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 for policies becoming eligible at future anniversariesfee is calculated [*]. All payments and fees must be paid within ninety (90) days of the mutually agreed upon recapture date.

INCREASE IN RETENTION. A. If the Ceding Company should increase the retention limits as listed in Exhibit II, prompt written notice of the increase must be given to the Reinsurer.(Continued) B. In the event of an increase in retention, the Ceding Company 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 within (90) ninety days after the effective date of the increase. C. Whenever When the Ceding Company increases its maximum dollar retention limit the 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 same quota share basis as referenced in Schedule B – Reinsurance Limits had the new retention limit schedule been in effect at the time of issue. In applying its increased retention limits over to reinsured policies, the age and mortality rating at the time of issue will be used to determine the amount of the Ceding Company's Maximum Limits ’s increased retention. The amount of Retention, reinsurance eligible for is based on the reinsurance net amount at risk as of the date of . No business will be eligible for reduction under this Article unless the Ceding Company kept its maximum retention as set forth in Exhibit 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 (not a special retention limit) for the plan and the insured's issue age, sex, and mortality classification schedule in effect at the time the reinsurance insurance was ceded issued. The amounts d shall be sufficient to increase the Ceding Company’s retention to the Reinsurernew limits. If there are other reinsurers, or if the Ceding Company did not retain insurance reduction on each risk shall be divided according to each reinsurer’s portion of the total reinsurance on the liferisk. If the reinsurance is reduced on any risk, it may apply its increased retention limits to reduce the amount of reinsurance as follows: 1similar reductions shall be made on all risks eligible for . The effective date of the reduction in reinsurance will become effective on the next annual premium anniversary after the individual a policy has been inforce for at least twenty (20) years. 2. If more than one policy per life is eligible for recapture, then the eligible policies may such reduction shall be recaptured beginning with the policy with the earliest issue date and continuing in chronological order according to the remaining 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 (3) years unless the Reinsurer agrees to accept this business. 4. If any reinsured policy is recaptured, all reinsured policies eligible for recapture under the provisions of this Article must be recaptured up to the Ceding Company's new maximum retention limits in a consistent manner and the Ceding Company must increase its total amount of insurance on each reinsured life. The Ceding Company may not revoke its election to recapture 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 will not be liable, after the effective date of , for any reinsured policies or portions of such reinsured policies eligible for that the Ceding Company has overlooked. The Reinsurer will be liable only for a credit of the premiums, received after the date, less any allowance.

INCREASE IN RETENTION. A. If the 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 Recapture Triggering Event is an increase in retentionthe Company’s retention on the Covered Policies as provided in Article V, Section 1(f) above, the Ceding Company 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 shall give the Reinsurer within ninety (90) ninety calendar days after written notice prior to the effective date of the increaserecapture. 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. C. Whenever (b) Recapture may be made if the Ceding Company increases retained its maximum retention limits over the Ceding Company's Maximum Limits of Retention, as set forth quota share in accordance with Exhibit 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 (not a special retention limit) B.5 for the plan and the insured's issue ageplan, sex, age and mortality classification in effect rating at the time the reinsurance 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 Reinsurer, or if pool. This decrease will apply to all such in force business reinsured under this Agreement provided the Ceding Company did not retain insurance on the life, it may apply its increased retention limits to reduce the amount of reinsurance as follows: 1requirements set forth in paragraphs 4. The reduction in reinsurance will become effective on the next annual premium anniversary after the individual policy has been inforce for at least twenty (20a) yearsand (b) above are satisfied. 2. If more than one (e) For a conversion policy, the duration for the recapture period will be measured from the policy per life is eligible for recapture, then date of the eligible policies may original Covered Policy. (f) Recapture as provided herein shall be recaptured beginning optional with the policy with the earliest issue date and continuing in chronological order according to the remaining 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 (3) years unless the Reinsurer agrees to accept this business. 4. If Company, but if any reinsured policy reinsurance is recaptured, all reinsured policies reinsurance eligible for recapture under the provisions of this Article V must be recaptured up recaptured. If there is reinsurance with other reinsurers on risks eligible for recapture, the necessary reduction is to be applied pro rata 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 insurance reinsurance eligible for recapture is based on each reinsured lifethe 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 Ceding 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 may not revoke its election 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 for policies becoming eligible at future anniversariesfee is calculated [*as ] All payments and fees must be paid within ninety (90) days of the mutually agreed upon recapture date.

INCREASE IN RETENTION. A. If the 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 Recapture Triggering Event is an increase in retentionthe Company’s retention on the Covered Policies as provided in Article V, section 1(d) above, the Ceding Company 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 shall give the Reinsurer within no less than ninety (90) ninety calendar days after written notice prior to the effective date of the increaserecapture. 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. C. Whenever (b) Recapture may be made if the Ceding Company increases retained its maximum retention limits over the Ceding Company's Maximum Limits of Retention, as set forth quota share in accordance with Exhibit 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 (not a special retention limit) B.5 for the plan and the insured's issue ageplan, sex, age and mortality classification in effect rating at the time the reinsurance 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 Reinsurer, or if pool. This decrease will apply to all such in force business reinsured under this Agreement provided the Ceding Company did not retain insurance on the life, it may apply its increased retention limits to reduce the amount of reinsurance as follows: 1requirements set forth in paragraphs 4. The reduction in reinsurance will become effective on the next annual premium anniversary after the individual policy has been inforce for at least twenty (20a) yearsand (b) above are satisfied. 2. If more than one policy per life is eligible for recapture, then the eligible policies may (e) Recapture as provided herein shall be recaptured beginning optional with the policy with the earliest issue date and continuing in chronological order according to the remaining 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 (3) years unless the Reinsurer agrees to accept this business. 4. If Company, but if any reinsured policy reinsurance is recaptured, all reinsured policies reinsurance eligible for recapture under the provisions of this Article V, section 4 must be recaptured up recaptured. If there is reinsurance with other reinsurers on risks eligible for recapture, the necessary reduction is to be applied pro rata to the Ceding Company's new maximum retention limits in a consistent manner and the Ceding Company must increase its total amount of insurance on each reinsured life. The Ceding Company may not revoke its election to recapture for policies becoming eligible at future anniversariesoutstanding reinsurance with all reinsurers.