Common use of Investment Credit on Funds Withheld Assets Clause in Contracts

Investment Credit on Funds Withheld Assets. The “Investment Credit on Funds Withheld Assets” shall be calculated for each Accounting Period as [(1) + (2) - (3)], where: (1) equals the gross investment income received, accrued, and accreted, and any related adjustments on the Funds Withheld Assets; (2) equals (i) if the Ceding Company calculates interest maintenance reserves monthly, the capital gains and losses (including “OTTI” and net of additions or deductions to the Post-Effective IMR for interest related realized capital gains and losses) on the Funds Withheld Assets for 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 capital gains and losses (including “OTTI” and net of additions or deductions to the Post-Effective IMR for interest related realized capital gains and losses) on the Funds Withheld Assets for each Accounting Period within the corresponding calendar quarter; and (3) equals the investment expenses allocated for the management of the Funds Withheld Assets.