Common use of Lapses Clause in Contracts

Lapses. When a policy issued by the CEDING COMPANY lapses, the corresponding reinsurance on the reinsured policy will be terminated effective the same date. Unless specified otherwise in this AGREEMENT, if a policy fully retained by the CEDING COMPANY lapses, the terms of Article X will apply. If a policy issued by the CEDING COMPANY lapses and extended term insurance is elected under the terms of that policy, the corresponding reinsurance on the reinsured policy will continue on the same basis as the original reinsured policy until the expiry of the extended term period. If a policy issued by the CEDING COMPANY lapses and reduced paid-up insurance is elected under the terms of that policy, the amount of the corresponding reinsurance on the reinsured policy will be reduced according to the terms of Article X. If the CEDING COMPANY allows the policy to remain in force under its automatic premium loan regulations, the corresponding reinsurance on the reinsured policy will continue unchanged and in force as long as such regulations remain in effect, except as otherwise provided in this AGREEMENT.

Lapses. When a policy issued by the CEDING COMPANY lapses, the corresponding reinsurance on the reinsured policy will be terminated effective the same date. Unless specified otherwise in this AGREEMENT, if a policy fully retained by the CEDING COMPANY lapses, the terms of Article X XI will apply. If a policy issued by the CEDING COMPANY lapses and extended term insurance is elected under the terms of that policy, the corresponding reinsurance on the reinsured policy will continue on the same basis as the original reinsured policy until the expiry of the extended term period. If a policy issued by the CEDING COMPANY lapses and reduced paid-up insurance is elected under the terms of that policy, the amount of the corresponding reinsurance on the reinsured policy will be reduced according to the terms of Article X. XI. If the CEDING COMPANY allows the policy to remain in force under its automatic premium loan regulations, the corresponding reinsurance on the reinsured policy will continue unchanged and in force as long as such regulations remain in effect, except as otherwise provided in this AGREEMENT.

Lapses. When a policy issued by the CEDING COMPANY Company lapses, the corresponding reinsurance on the reinsured policy Reinsured Policy will be terminated effective the same date. Unless specified otherwise in this AGREEMENTAgreement, if a policy fully retained by the CEDING COMPANY Company lapses, the terms of Article X 7.3 will apply. Full retention shall be defined as specified in Exhibit D of this Agreement. If a policy issued by the CEDING COMPANY Company lapses and extended term insurance is elected under the terms of that policy, the corresponding reinsurance on the reinsured policy Reinsured Policy will continue on the same basis as the original reinsured policy Reinsured Policy until the expiry of the extended term period. If a policy issued by the CEDING COMPANY Company lapses and reduced paid-up insurance is elected under the terms of that policy, the amount of the corresponding reinsurance on the reinsured policy Reinsured Policy will be reduced according to the terms of Article X. 7.3. If the CEDING COMPANY Company allows the policy to remain in force under its automatic premium loan regulations, the corresponding reinsurance on the reinsured policy Reinsured Policy will continue unchanged and in force as long as such regulations remain in effect, except as otherwise provided in this AGREEMENTAgreement.