Common use of Lapses Clause in Contracts

Lapses. When a Covered Policy is terminated due to a lapse, the cession in question shall be cancelled effective as of the date of such lapse. If the Company allows extended or reduced paid-up insurance following a lapse, the reinsurance will be appropriately amended. If the Company allows the Covered Policy to remain in force under its automatic premium loan provisions, the reinsurance shall continue unchanged and in force as long as such provisions remain in effect, except as provided for otherwise in this Agreement. If the Covered Policy continues in force without payment during any days of grace pending its termination, whether such continuance is as a result of a policy contractual provision or a practice of the Company, the reinsurance shall also continue without payment of premium and shall terminate on the same date as the Company’s risk terminates.

Lapses. When a Covered Policy reinsured policy is terminated due to a lapse, the cession in question shall be cancelled effective as of the date of such lapsesame date. If the Company allows extended or reduced paid-up insurance following a lapse, the reinsurance will be appropriately amended. If the Company allows the Covered Policy policy to remain in force under its automatic premium loan provisionsregulations, the reinsurance shall continue unchanged and in force as long as such provisions regulations remain in effect, except as provided for otherwise in this Agreement. If the Covered Policy policy continues in force without payment during any days of grace pending its termination, whether such continuance is as a result of a policy contractual provision or a practice of the Company, the reinsurance shall will also continue without payment of premium and shall will terminate on the same date as the Company’s risk terminates.