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Common use of Methodology Clause in Contracts

Methodology. At the time of the Triennial Study, historical costs (to include costs directly related to maintaining and administering policies, processing claims and reporting results) will be determined for the Policy Maintenance Factor identified above. For a given Annual Expense Reimbursement Factor the identified costs will be divided by the total historical number of units of measure for both the Reinsured Contracts and the retained block of business to derive an historical cost per unit. The historical cost per unit will be used as a prospective cost per unit for the next calendar year. For the two succeeding years in the period between the Triennial Studies the historical dollar amounts by Policy Maintenance Factor will be adjusted (rolled forward) for current year cost changes agreed to by the Reinsurer and the Company (in accordance with the procedures set forth below). This rolled forward historical cost will then be divided by the total historical number of units for the current period to determine a prospective cost per unit for the next calendar year. An additional adjustment, positive or negative, to the prospective cost per unit determined by either the Triennial Study or the two succeeding years may be negotiated between the parties. The additional adjustment is for special projected costs or benefits of productivity, process improvements, inflation, loss of scale, and any other cost variation which was not included in the prior Triennial Study or the succeeding roll forward. The combined prospective unit cost and additional adjustment is the Annual Expense Reimbursement Factor. The Expense Allowance will be determined quarterly and billed to the Reinsurer in three equal installments during the quarter at the end of the month. Each installment will be determined by multiplying the actual number of units at the beginning of the quarter covered by this Agreement times the Annual Expense Reimbursement Factor (divided by twelve).

Appears in 7 contracts

Samples: Coinsurance Agreement (Genworth Financial Inc), Coinsurance Agreement (Genworth Financial Inc), Coinsurance Agreement (Genworth Financial Inc)

Methodology. At the time of the Triennial Study, historical costs (to include costs directly related to maintaining and administering policies, processing claims and reporting results) will be determined for the Policy Maintenance Factor identified above. For a given Annual Expense Reimbursement Factor the identified costs will be divided by the total historical number of units of measure for both the Reinsured Contracts and the retained block of business to derive an historical cost per unit. The historical cost per unit will be used as a prospective cost per unit for the next calendar year. For the two succeeding years in the period between the Triennial Studies the historical dollar amounts by Policy Maintenance Factor will be adjusted (rolled forward) for current year cost changes agreed to by the Reinsurer and the Company (in accordance with the procedures set forth below). This rolled forward historical cost will then be divided by the total historical number of units for the current period to determine a prospective cost per unit for the next calendar year. An additional adjustment, positive or negative, to the prospective cost per unit determined by either the Triennial Study or the two succeeding years may be negotiated between the parties. The additional adjustment is for special projected costs or benefits of productivity, process improvements, inflation, loss of scale, and any other cost variation which was not included in the prior Triennial Study or the succeeding roll forward. The credit for Fund Company Administrative Expense Service Shares will be redetermined annually to reflect historical amounts of reimbursement relating to Reinsured Contracts, current period number of units, and changes in contractual arrangements with Fund Companies. The combined prospective unit cost and cost, additional adjustment and Fund Company Administrative Expense Service Shares credit is the Annual Expense Reimbursement Factor. The Expense Allowance will be determined quarterly and billed to the Reinsurer in three equal installments during the quarter at the end of the month. Each installment will be determined by multiplying the actual number of units at the beginning of the quarter covered by this Agreement times the Annual Expense Reimbursement Factor (divided by twelve).

Appears in 5 contracts

Samples: Reinsurance Agreement (Genworth Financial Inc), Reinsurance Agreement (Genworth Financial Inc), Reinsurance Agreement (Ge Life & Annuity Assurance Co)

Methodology. At the time of the Triennial Study, historical costs (to include costs (excluding costs identified as “Allocated Loss Adjustment Expenses”) directly related to maintaining and administering policies, processing claims and reporting results, including, without limitation, for Business Overhead Services set forth on Schedule E-1 hereto) will be determined for the Policy Maintenance Factor, the Claims Factor and the Travelers Agreement Maintenance Factor identified above. For a given Annual Expense Reimbursement Factor the identified costs will be divided by the total historical number of units of measure for both the Reinsured Contracts Policies and the retained block of business to derive an historical cost per unit. The historical cost per unit will be used as a prospective cost per unit for the next calendar year. For the two succeeding years in the period between the Triennial Studies the historical dollar amounts by Policy Maintenance Factor, Claims Factor and Travelers Agreement Maintenance Factor will be adjusted (rolled forward) for current year cost changes agreed to by the Reinsurer and the Company (in accordance with the procedures set forth below). This rolled forward historical cost will then be divided by the total historical number of units for the current period to determine a prospective cost per unit for the next calendar year. An additional adjustment, positive or negative, to the prospective cost per unit determined by either the Triennial Study or the two succeeding years may be negotiated between the parties. The additional adjustment is for special projected costs or benefits of productivity, process improvements, inflation, loss of scale, and any other cost variation which was not included in the prior Triennial Study or the succeeding roll forward. The combined prospective unit cost and additional adjustment is the Annual Expense Reimbursement Factor. The Expense Allowance will be determined quarterly and billed to the Reinsurer in three equal installments during the quarter at the end of the month. Each installment of the monthly amount billed will be determined by multiplying the actual number of units at the beginning of the quarter covered by this Agreement times the Annual Expense Reimbursement Factor (divided by twelve).

Appears in 2 contracts

Samples: Retrocession Agreement (Genworth Financial Inc), Retrocession Agreement (Genworth Financial Inc)