Modco Reserve Adjustment. For each Accounting Period, the Modco Reserve Adjustment shall be (1) minus (2), where, (1) Equals a modified coinsurance reserve (the "Modco Reserve") held by the Ceding Company at the end of the Accounting Period. For these purposes, the Modco Reserve equals the amounts shown on Ceding Company's statutory statements at the end of the Accounting Period for its Separate Account liabilities related to the Reinsured Contracts, including pending claim reserves. Ceding Company may, for purposes of determining Reinsurance Gain, exclude immaterial reserve amounts determined under the then applicable Commissioners Annuity Reserve Valuation Method (CARVM); and (2) Equals the Modco Reserve, determined in accordance with subsection (1), at the end of the previous Accounting Period, except that for the initial Accounting Period, the Modco Reserve will equal the Modified Coinsurance Reserve determined as of the Effective Date, in accordance with Sections 5.01, 5.02 and 5.03 and Exhibit B of the Agreement.
Appears in 6 contracts
Samples: Service Agreement and Indemnity Combination Coinsurance Agreement (Hancock John Variable Annuity Account H), Service Agreement and Indemnity Combination Coinsurance Agreement (Hancock John Variable Annuity Account H), Service Agreement and Indemnity Combination Coinsurance Agreement (Hancock John Variable Annuity Account H)
Modco Reserve Adjustment. For each Accounting Period, the Modco Reserve Adjustment shall be (1) minus (2) minus (3), where,
(1) Equals a modified coinsurance reserve (the "“Modco Reserve"”) held by the Ceding Company at the end of the Accounting Period. For these purposes, the Modco Reserve equals the amounts shown on Ceding Company's ’s statutory statements at the end of the Accounting Period for its Separate Account liabilities related to the Reinsured ContractsPolicies, including pending claim reserves. Ceding Company may, for purposes of determining Reinsurance Gain, exclude immaterial reserve amounts determined under the then applicable Commissioners Annuity Reserve Valuation Method (CARVM); and
(2) Equals the Modco Reserve, determined in accordance with subsection (1), at the end of the previous Accounting Period, except that for the initial Accounting Period, the Modco Reserve will equal the Modified Coinsurance Reserve determined as of the Effective Date, in accordance with Sections 5.01, 5.02 and 5.03 and Exhibit B of the Agreement.
(3) Equals the Modco Investment Credit as per item F
Appears in 2 contracts
Samples: Reinsurance Agreement, Service Agreement (Hancock John Variable Life Account U)
