Common use of INTERNAL REPLACEMENTS Clause in Contracts

INTERNAL REPLACEMENTS. A policy issued as an internal exchange or replacement of a policy not reinsured under this Agreement and underwritten by the Ceding Company in accordance with its underwriting guidelines, standards and procedures for exchanges and replacements will be treated as new business under this Agreement. Reinsurance may be ceded automatically or facultatively according to the same terms and conditions as apply to other new business. Reinsurance premium rates will be based on the issue age, issue date, and underwriting classification of the new policy. If a policy reinsured under this Agreement is internally exchanged or replaced, reinsurance will continue under this Agreement or any future agreement between the parties to the extent applicable. Reinsurance premium rates will be based on issue age and duration of the original policy and on the underwriting classification of the new policy.