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.

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. 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 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 (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 of issue will be used to determine the Covered Policy was issuedamount of the Ceding Company’s increased retention. Any class The amount of fully reinsured reinsurance eligible for is based on the reinsurance net amount at risk as of the date of . No business or any classes of risks will be eligible for which reduction under this Article unless the Ceding Company established special kept its maximum retention limits less than those as set forth in this Agreement the retention schedule in effect at the time the Covered Policy insurance was issued issued. The amounts d shall be sufficient to increase the Ceding Company’s retention to the new limits. If there are not eligible for reduction. (c) Such 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 next reduction in reinsurance on a policy anniversary 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 each cession affected from 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 recapture set forth in , for any reinsured policies or portions of such reinsured policies eligible for that the recapture notice from the Ceding Company to the has overlooked. 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 liable only for 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 credit of the original Covered Policypremiums, received after the date, less any allowance. (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.

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. The amount of reinsurance eligible for recapture is based on the reinsurance net amount at risk as of the date of recapture. 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 accredit of the premiums received after the recapture date, less any commission or allowance and with all reinsurersinterest. 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 there was no W.P. claim. The terms and conditions 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(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.