Common use of NET AMOUNT AT RISK Clause in Contracts

NET AMOUNT AT RISK. A. The reinsured Net Amount At Risk at issue is defined as the policy face amount less the amount retained by the Ceding Company, and for automatic policies, multiplied by the Reinsurer’s share as stated in Schedule A. After issue, any change in the policy Net Amount At Risk due to changes in the policy’s account value will be allocated proportionally between Ceding Company and Reinsurer based on the retention and the reinsured Net Amount At Risk at issue. For universal life plans, the Net Amount At Risk is calculated using the account value in effect at the policy anniversary. B. If life insurance on a reinsured policy is increased and the increase is subject to new underwriting evidence, then the increase of life insurance on the reinsured policy will be administered as though it were the issuance of a new policy. If the increase is not subject to new underwriting evidence, and increases are contractual, then the increase will be automatically accepted by the Reinsurer, but the total amount of reinsurance is not to exceed the Total Reinsurer Automatic Binding Limits shown in Schedule B. Reinsurance rates will be based on the original issue age, duration since issuance of the original policy and the original underwriting classification. Other increases not subject to new underwriting evidence are not allowed under this Agreement. C. Risk classification changes on facultatively reinsured policies will be subject to the Reinsurer’s approval. D. The Ultimate Face Amount on policies with Increasing Death Benefits will be determined at policy issuance and will be the death benefit at the maximum attained age as shown under current values in the policy illustration. To determine the allocated risk percentage of each policy’s face amount, the following calculations will be made: % Ceded to Reinsurer = Reinsurer Share of Ultimate Face Amount / Ultimate Face Amount To determine THE REINSURER’s net amount at risk on a policy at any given time, the sum of the policy’s initial face amount and the current value of any applicable Increasing Death Benefit less the policy’s current account value, multiplied by the % Ceded to the Reinsurer. For the avoidance of doubt, THE REINSURER’s liability for policies with Increasing Death Benefits is limited to net amount at risk as calculated in the preceding paragraph and in no event will ever exceed THE REINSURER’s Automatic Binding Limits shown in Schedule A.

NET AMOUNT AT RISK. A. The reinsured Net Amount At Risk at issue is defined as the policy face amount less the amount retained by the Ceding Company, and for automatic policies, multiplied by the Reinsurer’s share as stated in Schedule A. After issue, any change in the policy Net Amount At Risk due to changes in the policy’s account value will be allocated proportionally between Ceding Company and Reinsurer based on the retention and the reinsured Net Amount At Risk at issue. For universal life plans, the Net Amount At Risk is calculated using the account value in effect at the policy anniversary. B. If life insurance on a reinsured policy is increased and the increase is subject to new underwriting evidence, then the increase of life insurance on the reinsured policy will be administered as though it were the issuance of a new policy. If the increase is not subject to new underwriting evidence, and increases are contractual, then the increase will be automatically accepted by the Reinsurer, but the total amount of reinsurance is not to exceed the Total Reinsurer Automatic Binding Limits shown in Schedule B. Reinsurance rates will be based on the original issue age, duration since issuance of the original policy and the original underwriting classification. Other increases not subject to new underwriting evidence are not allowed under this Agreement. C. Risk classification changes on facultatively reinsured policies will be subject to the Reinsurer’s approval. D. The Ultimate Face Amount on policies with Increasing Death Benefits will be determined at policy issuance and will be the death benefit at the maximum attained age as shown under current values in to the policy illustration. To determine the allocated risk percentage of each policy’s face amount, the following calculations will be made: % Ceded to Reinsurer = Reinsurer Share of Ultimate Face Amount / Ultimate Face Amount To determine THE REINSURER’s net amount at risk on a policy at any given time, the sum of the policy’s initial face amount and the current value of any applicable Increasing Death Benefit less the policy’s current account value, multiplied by the % Ceded to the Reinsurer. For the avoidance of doubt, THE REINSURER’s liability for policies with Increasing Death Benefits is limited to net amount at risk as calculated in the preceding paragraph and in no event will ever exceed THE REINSURER’s ’S Automatic Binding Limits shown in Schedule A.

NET AMOUNT AT RISK. A. The reinsured Net Amount At Risk at issue is defined as the policy face amount less the amount retained by the Ceding Company, and for automatic policies, multiplied by the Reinsurer’s share as stated in Schedule A. After issue, any change in the policy Net Amount At Risk due to changes in the policy’s account value will be allocated proportionally between Ceding Company and Reinsurer based on the retention and the reinsured Net Amount At Risk at issue. For universal life plans, the Net Amount At Risk is calculated using the account value in effect at the policy anniversary. For term plans, the net amount at risk will be based on the reinsured face amount. B. If life insurance on a reinsured policy is increased and the increase is subject to new underwriting evidence, then the increase of life insurance on the reinsured policy will be administered as though it were the issuance of a new policy. If the increase is not subject to new underwriting evidence, and increases are contractual, then the increase will be automatically accepted by the Reinsurer, but the total amount of reinsurance is not to exceed the Total Reinsurer Automatic Binding Limits shown in Schedule B. Reinsurance rates will be based on the original issue age, duration since issuance of the original policy and the original underwriting classification. Other increases not subject to new underwriting evidence are not allowed under this Agreement. C. Risk classification changes on facultatively reinsured policies will be subject to the Reinsurer’s approval. D. The Ultimate Face Amount on policies with Increasing Death Benefits will be determined at policy issuance and will be the death benefit at the maximum attained age as shown under current values in the policy illustration. To determine the allocated risk percentage of each policy’s face amount, the following calculations will be made: % Ceded to Reinsurer = Reinsurer Share of Ultimate Face Amount / Amount/Ultimate Face Amount To determine THE REINSURER’s net amount at risk on a policy at any given time, the sum of the policy’s initial face amount and the current value of any applicable Increasing increasing Death Benefit less the policy’s current account value, multiplied by the % Ceded ceded to the Reinsurer. For the avoidance of doubt, THE REINSURER’s liability for policies with Increasing Death Benefits is limited to net amount at risk as calculated in the preceding paragraph and in no event will ever exceed THE REINSURER’s Automatic Binding Limits shown in Schedule A.

NET AMOUNT AT RISK. A. The reinsured Net Amount At Risk at issue is defined as the policy face amount less the amount retained by the Ceding CompanyCEDING COMPANY, and for automatic policies, multiplied by the Reinsurer’s REINSURER’S share as stated in Schedule A. After issue, any change in the policy Net Amount At Risk due to changes in the policy’s account value will be allocated proportionally between Ceding Company the CEDING COMPANY and Reinsurer the REINSURER based on the retention and the reinsured Net Amount At Risk at issue. For universal life plans, the Net Amount At Risk is calculated using the account value in effect at the policy anniversary. B. If life insurance on a reinsured policy is increased and the increase is subject to new underwriting evidence, then the increase of life insurance on the reinsured policy will be administered as though it were the issuance of a new policy. If the increase is not subject to new underwriting evidence, and increases are contractual, then the increase will be automatically accepted by the ReinsurerREINSURER, but the total amount of reinsurance is not to exceed the Total Reinsurer Automatic Binding Limits shown in Schedule B. Reinsurance rates will be based on the original issue age, duration since issuance of the original policy and the original underwriting classification. Other increases not subject to new underwriting evidence are not allowed under this AgreementAGREEMENT. C. Risk classification changes on facultatively reinsured policies will be subject to the Reinsurer’s REINSURER’S approval. D. The Ultimate Face Amount on policies with Increasing Death Benefits will be determined at policy issuance and will be the death benefit at the maximum attained age as shown under current values in the policy illustration. To determine the allocated risk percentage of each policy’s face amount, the following calculations will be made: % Ceded to Reinsurer REINSURER = Reinsurer REINSURER Share of Ultimate Face Amount / Ultimate Face Amount To determine THE the REINSURER’s ’S net amount at risk on a policy at any given time, the sum of the policy’s initial face amount and the current value of any applicable Increasing Death Benefit less the policy’s current account value, multiplied by the % Ceded to the ReinsurerREINSURER. For the avoidance of doubt, THE the REINSURER’s ’S liability for policies with Increasing Death Benefits is limited to net amount at risk as calculated in the preceding paragraph and in no event will ever exceed THE the REINSURER’s ’S Automatic Binding Limits shown in Schedule A.