Common use of Lapses Clause in Contracts

Lapses. When a Reinsured Policy lapses, reinsurance thereon will be terminated effective the same date. Unless specified otherwise in this Agreement, if a policy fully retained by the Company lapses, the terms under the preceding Reductions clause would apply. If a Reinsured Policy lapses and extended term insurance is elected under the terms of the policy, the reinsurance thereon will continue on the same basis as the original policy until the expiry of the extended term period. If a Reinsured Policy lapses and reduced paid-up insurance is elected under the terms of the policy, the amount of reinsurance will be reduced according to the terms under the preceding Reductions clause. If the Company allows the Reinsured Policy to remain in force under its automatic premium loan regulations, the reinsurance will continue unchanged and in force as long as such regulations remain in effect, except as provided for otherwise in this Agreement. The Reinsurer does not participate in policy loans or other forms of indebtedness on policies reinsured under this Agreement. Therefore, policy loans do not affect the amount of reinsurance.

Lapses. When a policy lapses, the corresponding Reinsured Policy lapses, reinsurance thereon will be terminated effective the same date. Unless specified otherwise in this Agreement, if a policy fully retained by the Company lapses, the terms under the preceding Reductions clause would apply. If a Reinsured Policy policy lapses and extended term insurance is elected under the terms of the policy, the reinsurance thereon corresponding Reinsured Policy will continue on the same basis as the original policy until the expiry of the extended term period. If a Reinsured Policy policy lapses and reduced paid-up insurance is elected under the terms of the policy, the amount of reinsurance the corresponding Reinsured Policy will be reduced according to the terms under the preceding Reductions clause. If the Company allows the Reinsured Policy policy to remain in force under its automatic premium loan regulations, the reinsurance will continue unchanged and in force as long as such regulations remain in effect, except as provided for otherwise in this Agreement. The Reinsurer does not participate in policy loans or other forms of indebtedness on policies reinsured under this Agreement. Therefore, policy loans do not affect the amount of reinsurance.

Lapses. When a Reinsured Policy lapses, reinsurance thereon will be terminated effective the same date. Unless specified otherwise in this Agreement, if a policy fully retained by the Company lapses, the terms under the preceding Reductions clause would apply. If a Reinsured Policy lapses and extended term insurance is elected under the terms of the policyPolicy, the reinsurance thereon will continue on the same basis as the original policy Policy until the expiry of the extended term period. If a Reinsured Policy lapses and reduced paid-up insurance is elected under the terms of the policyPolicy, the amount of reinsurance will be reduced according to the terms under the preceding Reductions clause. If the Company allows the Reinsured Policy to remain in force under its automatic premium loan regulations, the reinsurance will continue unchanged and in force as long as such regulations remain in effect, except as provided for otherwise in this Agreement. The Reinsurer does not participate in policy loans or other forms of indebtedness on policies reinsured under this Agreement. Therefore, policy loans do not affect the amount of reinsurance.

Lapses. When a policy lapses, the corresponding Reinsured Policy lapses, reinsurance thereon will be terminated effective the same date. Unless specified otherwise in this Agreement, if a policy fully retained by the Company lapses, the terms under the preceding Reductions clause would apply. If a Reinsured Policy policy lapses and extended term insurance is elected under the terms of the policy, the reinsurance thereon corresponding Reinsured Policy will continue on the same basis as the original policy until the expiry of the extended term period. If a Reinsured Policy policy lapses and reduced paid-up insurance is elected under the terms of the policy, the amount of reinsurance the corresponding Reinsured Policy will be reduced according to the terms under the preceding Reductions clause. If the Company allows the Reinsured Policy policy to remain in force under its automatic premium loan or no-lapse guarantee rider regulations, the reinsurance will continue unchanged and in force as long as such regulations remain in effect, except as provided for otherwise in this Agreement. The Reinsurer does not participate in policy loans or other forms of indebtedness on policies reinsured under this Agreement. Therefore, policy loans do not affect the amount of reinsurance.

Lapses. When a lapses, the corresponding Reinsured Policy lapses, reinsurance thereon will be terminated effective the same date. Unless specified otherwise in this Agreement, if a policy fully retained by the Company lapses, the terms under the preceding Reductions clause would apply. If a Reinsured Policy policy lapses and extended term insurance is elected under the terms of the policy, the reinsurance thereon corresponding Reinsured Policy will continue on the same basis as the original policy until the expiry of the extended term period. If a Reinsured Policy policy lapses and reduced paid-up insurance is elected under the terms of the policy, the amount of reinsurance the corresponding Reinsured Policy will be reduced according to the terms under the preceding Reductions clause. If the Company allows the Reinsured Policy policy to remain in force under its automatic premium loan regulations, the reinsurance will continue unchanged and in force as long as such regulations remain in effect, except as provided for otherwise in this Agreement. The Reinsurer does not participate in policy loans or other forms of indebtedness on policies reinsured under this Agreement. Therefore, policy loans do not affect the amount of reinsurance.