Common use of MODIFICATION OF ALLOWANCES AND PRODUCT DESIGN Clause in Contracts

MODIFICATION OF ALLOWANCES AND PRODUCT DESIGN. 1. All reinsurance premium rates and reinsurance expense allowances specified in this Agreement will be guaranteed until April 1, 2005 2. After April 1, 2005 the contracting parties shall annually review the actual acquisition and maintenance expense experience to determine if any modifications to the reinsurance expense allowances as shown on Schedule D are required. Any such changes to the allowances would reflect the change in the actual expense experience as consistently allocated. Also, any changes would reflect the intention of the contracting parties to share the expenses consistent with the quota share percentage shown in Schedule B. The revised expense allowances would apply to all business.

MODIFICATION OF ALLOWANCES AND PRODUCT DESIGN. 1. All reinsurance premium rates commissions and reinsurance expense allowances specified in this Agreement will be guaranteed until April 1, 2005. 2. After April 1, 2005 2005, the contracting parties shall annually review the actual acquisition and maintenance expense experience to determine if any modifications to the reinsurance expense allowances as shown on Schedule D are required. Any such changes to the allowances would reflect the change in the actual expense experience as consistently allocated. Also, any changes would reflect the intention of the contracting parties to share the expenses consistent with the quota share percentage shown in Schedule B. The revised expense allowances would apply to all business.