Common use of Payment of Reinsurance Premiums Clause in Contracts

Payment of Reinsurance Premiums. For Automatic and Facultative Reinsurance, following the close of each calendar month, the Ceding Company will send the Reinsurer a statement and a listing of new business, changes, and terminations. The Reinsurer will refund to the Ceding Company all unearned Annual YRT Reinsurance Premiums not including policy fees, less applicable allowances, arising from reductions, terminations and changes as described in Article IX. Annual YRT Reinsurance Premiums, as calculated in Exhibit I, based on the Reinsured Net Amount at Risk, as defined in Schedule B, are paid annual in advance each month for those policies renewing during that month. Single Life Excess Pool Between HLAIC and Transamerica Effective 11/01/2002 Fac / 12/01/2002 Auto If a net reinsurance premium balance is payable to the Reinsurer, the Ceding Company will forward this balance within (30) thirty days after the close of each month. If a net reinsurance premium balance is payable to the Ceding Company, the balance due will be subtracted from the reinsurance premium payable by the Ceding Company for the current month. The reinsurance premiums for all of the reinsurance risks listed on the statement will be delinquent if the net reinsurance premium balance is not received or paid within (30) thirty days after the close of the month. When the reinsurance premiums are deemed delinquent, as defined above, a compound interest penalty may be assessed each month the premiums remain delinquent. Interest shall be calculated from the day following the date the premiums are due and payable to the day such premium payment is mailed or the last day of the accounting period, whichever comes first, regardless of holidays and weekends. The rate of interest charged each month shall be the lesser of (i) the 30 Day Treasury Bill rate as published in the Money Rate Section or any successor section of the Wall Street Journal on the first business day following the date the premiums are deemed delinquent or (ii) the maximum rate allowed by law in the State of Connecticut. Premiums and interest penalties that remain unpaid shall be carried forward into the next month's interest penalty calculation.

Payment of Reinsurance Premiums. For Automatic and Facultative Reinsurance, following 1. At the close end of each calendar month, month the Ceding Company will Reinsured shall prepare and send to the Reinsurer a statement statement, in substantial accord with SCHEDULE F, reporting reinsurance premiums due on each new risk and a listing for renewals of new businesspolicies whose anniversary date falls within the reporting month. Any premium adjustments and refunds due because of terminations, changesreinstatements, reissues and terminationsother changes during the month shall also be listed. New reinsurance shall be reported on the monthly report next following the time that the reinsured policy has been reported as delivered and paid for. 2. The Reinsurer will refund monthly statement shall be furnished to the Ceding Company all unearned Annual YRT Reinsurance Premiums not including policy fees, less applicable allowances, arising from reductions, terminations Reinsurer within after the end of each month and changes shall be accompanied by payment of any net amount due the Reinsurer as described in Article IX. Annual YRT Reinsurance Premiums, as calculated in Exhibit I, based shown on the Reinsured Net Amount at Risk, as defined in Schedule B, are paid annual in advance each month for those policies renewing during that monthstatement. Single Life Excess Pool Between HLAIC and Transamerica Effective 11/01/2002 Fac / 12/01/2002 Auto If a net any reinsurance premium balance is payable to not paid within the Reinsurerallotted time, the Ceding Company will forward this balance within (30) thirty days after Reinsurer has the close of each month. If a net reinsurance premium balance is payable right to the Ceding Company, the balance due will be subtracted from the reinsurance premium payable by the Ceding Company for the current month. The reinsurance premiums for all of terminate its liability on the reinsurance risks listed on the statement will be delinquent if by giving written notice to the net reinsurance premium balance is not received or paid within (30) thirty days after Reinsured. At the close of the monththirty day period following the notice, the Reinsurer’s liability shall terminate for the aforementioned risks. When Regardless of these terminations, the Reinsured shall be liable to the Reinsurer for all unpaid reinsurance premiums are deemed delinquent, as defined above, a compound interest penalty earned by them. 3. Terminated risks may be assessed each month reinstated within sixty days after the effective date of termination by paying in full all of the unpaid reinsurance premiums remain delinquentfor the risks in force prior to the termination. Interest The Reinsurer shall not be calculated from the day following liable for any claim incurred between the date the premiums are due of termination and payable to the day such premium payment is mailed or the last day of the accounting period, whichever comes first, regardless of holidays and weekendsreinstatement. The rate effective date of interest charged each month reinstatement shall be the lesser of (i) date on which the 30 Day Treasury Bill rate as published in the Money Rate Section or any successor section of the Wall Street Journal on the first business day following the date the premiums are deemed delinquent or (ii) the maximum rate allowed by law in the State of ConnecticutReinsurer receives all required back premiums. 4. Premiums and interest penalties that remain unpaid Late payments shall be carried forward into subject to a reasonable late payment charge to be determined by the next month's interest penalty calculationReinsurer. 5. The Reinsured or the Reinsurer may exercise at any time the right to offset any debts or credits, liquidated or unliquidated, whether on account of premiums or otherwise, due from either party and their affiliates to the other under this Agreement or under any other Reinsurance Agreement between the two parties. [page break]

Payment of Reinsurance Premiums. For Automatic and Facultative Reinsurance, following 1. At the close end of each calendar month, month the Ceding Company will Reinsured shall prepare and send to the Reinsurer a statement statement, in substantial accord with SCHEDULE F, reporting reinsurance premiums due on each new risk and a listing for renewals of new businesspolicies whose anniversary date falls within the reporting month. Any premium adjustments and refunds due because of terminations, changesreinstatements, reissues and terminationsother changes during the month shall also be listed. New reinsurance shall be reported on the monthly report next following the time that the reinsured policy has been reported as delivered and paid for. 2. The Reinsurer will refund monthly statement shall be furnished to the Ceding Company all unearned Annual YRT Reinsurance Premiums not including policy fees, less applicable allowances, arising from reductions, terminations Reinsurer within after the end of each month and changes shall be accompanied by payment of any net amount due the Reinsurer as described in Article IX. Annual YRT Reinsurance Premiums, as calculated in Exhibit I, based shown on the Reinsured Net Amount at Risk, as defined in Schedule B, are paid annual in advance each month for those policies renewing during that monthstatement. Single Life Excess Pool Between HLAIC and Transamerica Effective 11/01/2002 Fac / 12/01/2002 Auto If a net any reinsurance premium balance is payable to not paid within the Reinsurerallotted time, the Ceding Company will forward this balance within (30) thirty days after Reinsurer has the close of each month. If a net reinsurance premium balance is payable right to the Ceding Company, the balance due will be subtracted from the reinsurance premium payable by the Ceding Company for the current month. The reinsurance premiums for all of terminate its liability on the reinsurance risks listed on the statement will be delinquent if by giving written notice to the net reinsurance premium balance is not received or paid within (30) thirty days after Reinsured. At the close of the monththirty day period following the notice, the Reinsurer’s liability shall terminate for the aforementioned risks. When Regardless of these terminations, the Reinsured shall be liable to the Reinsurer for all unpaid reinsurance premiums are deemed delinquent, as defined above, a compound interest penalty earned by them. 3. Terminated risks may be assessed each month reinstated within sixty days after the effective date of termination by paying in full all of the unpaid reinsurance premiums remain delinquentfor the risks in force prior to the termination. Interest The Reinsurer shall not be calculated from the day following liable for any claim incurred between the date the premiums are due of termination and payable to the day such premium payment is mailed or the last day of the accounting period, whichever comes first, regardless of holidays and weekendsreinstatement. The rate effective date of interest charged each month reinstatement shall be the lesser of (i) date on which the 30 Day Treasury Bill rate as published in the Money Rate Section or any successor section of the Wall Street Journal on the first business day following the date the premiums are deemed delinquent or (ii) the maximum rate allowed by law in the State of ConnecticutReinsurer receives all required back premiums. 4. Premiums and interest penalties that remain unpaid Late payments shall be carried forward into subject to a reasonable late payment charge to be determined by the next month's interest penalty calculationReinsurer. 5. The Reinsured or the Reinsurer may exercise at any time the right to offset any debts or credits, liquidated or unliquidated, whether on account of premiums or otherwise, due from either party and their affiliates to the other under this Agreement or under any other Reinsurance Agreement between the two parties. [page break] ARTICLE V: STANDARD PROVISIONS A. ERRORS AND OMISSIONS .

Payment of Reinsurance Premiums. For Automatic A. The REINSURED shall send the LINCOLN each month a report in substantial accord with the appropriate form in the Administrative Forms Schedule, showing all outstanding first-year policies for which the REINSURED'S records have been completed and Facultative Reinsurance, following all renewal reinsurance premiums on reinsurance policies having anniversaries in the close of each calendar preceding month. B. The amount due the LINCOLN shall accompany such report; if the amount is due the REINSURED, the Ceding Company will send the Reinsurer a statement and a listing of new business, changes, and terminations. The Reinsurer will refund LINCOLN shall remit such amount to the Ceding Company REINSURED within fifteen days of receipt of the report. Premiums for reinsurance hereunder are payable at the Home Office of the LINCOLN or any other location specified by the LINCOLN and shall be paid on an annual basis without regard to the manner of payment stipulated in the policy issued by the REINSURED. C. The payment of reinsurance premiums in accordance with the provisions of the preceding section shall be a condition precedent to the liability of the LINCOLN under reinsurance covered by this Agreement. In the event that reinsurance premiums are not paid as provided in the preceding section, the LINCOLN shall have the right to terminate the reinsurance under all unearned Annual YRT Reinsurance Premiums not policies having reinsurance premiums in arrears. If the LINCOLN elects to exercise its right of termination, it shall give the REINSURED thirty days' notice of its intention to terminate such reinsurance. If all reinsurance premiums in arrears, including policy fees, less applicable allowances, arising from reductions, terminations and changes as described any which may become in Article IX. Annual YRT Reinsurance Premiums, as calculated in Exhibit I, based on arrears during the Reinsured Net Amount at Risk, as defined in Schedule Bthirty-day period, are not paid annual in advance each month for those policies renewing during that month. Single Life Excess Pool Between HLAIC and Transamerica Effective 11/01/2002 Fac / 12/01/2002 Auto If a net reinsurance premium balance is payable to before the Reinsurerexpiration of such period, the Ceding Company will forward this balance within (30) thirty days after the close LINCOLN shall thereupon be relieved of each monthfuture liability under all reinsurance for which premiums remain unpaid. If a net Policies on which reinsurance premium balance is payable to the Ceding Company, the balance premiums subsequently fall due will be subtracted from the automatically terminate if reinsurance premium payable by the Ceding Company for the current monthpremiums are not paid when due as provided in section B of this article. The reinsurance so terminated may be reinstated at any time within sixty days of the date of termination upon payment of all reinsurance premium in arrears; but, in the event of such reinstatement, the LINCOLN shall have no liability in connection with any claims incurred between the date of termination and the date of reinstatement of the reinsurance. The LINCOLN'S right to terminate reinsurance as herein provided shall be without prejudice to its right to collect premiums for all the period reinsurance was in force prior to the expiration of the reinsurance risks listed on thirty-day notice period. D. Any payment which either the statement will REINSURED or the LINCOLN shall be delinquent if obligated to pay to the net reinsurance premium balance is not received or paid within (30) thirty days after the close of the month. When the reinsurance premiums are deemed delinquent, as defined above, a compound interest penalty other may be assessed each month the premiums remain delinquent. Interest shall be calculated from the day following the date the premiums are paid net of any amount which is then due and payable to the day such premium payment is mailed or the last day of the accounting period, whichever comes first, regardless of holidays and weekends. The rate of interest charged each month shall be the lesser of (i) the 30 Day Treasury Bill rate as published in the Money Rate Section or any successor section of the Wall Street Journal on the first business day following the date the premiums are deemed delinquent or (ii) the maximum rate allowed by law in the State of Connecticut. Premiums and interest penalties that remain unpaid shall be carried forward into the next month's interest penalty calculationunder this Agreement.

Payment of Reinsurance Premiums. For Automatic and Facultative Reinsurance, following A. The Reinsurance Premiums shall be payable to the close Reinsurer on the calendar monthly basis regardless of how insurance premiums are payable to Cedent. Under this method of remittance Cedent shall hold the entire statutory valuation reserve reduced by any unaccrued monthly reinsurance net premium attributable to the current calendar month. Cedent shall hold a reserve attributable to that premium. At the end of each calendar month the unaccrued portion of the current monthly reinsurance net premium is equal to zero. B. Cedent shall prepare and submit to Reinsurer a monthly statement, either electronically or by regular U.S. postal service, which will provide the pertinent policy premium details in a mutually agreed upon report format, within thirty (30) days following the last day of the same calendar month. The net monthly premiums due will be (i) the balance of monthly Reinsurance Premiums due on reinsurance in force at the end of the immediately preceding calendar month plus (ii) Reinsurance Premiums due on new business reinsured during the current month, minus (iii) the Ceding Company will send the Reinsurer a statement refunds of Reinsurance Premiums due Cedent on deaths, lapses and a listing of new business, changes, and terminations. The Reinsurer will refund to the Ceding Company all unearned Annual YRT plus or minus (iv) Reinsurance Premiums not including policy feesadjustments due to a misstatement of age or sex, less applicable allowances, arising from reductions, terminations and changes as described in Article IX. Annual YRT Reinsurance Premiums, as calculated in Exhibit I, based on without interest. C. If the Reinsured Net Amount at Risk, as defined in Schedule B, are paid annual in advance each month for those policies renewing during that month. Single Life Excess Pool Between HLAIC and Transamerica Effective 11/01/2002 Fac / 12/01/2002 Auto If monthly statement shows a net reinsurance premium Reinsurance Premium balance is payable to the Reinsurer, the Ceding Company will forward Cedent shall remit this balance amount due Reinsurer within thirty (30) thirty days after the close of each monthdays. If a net reinsurance premium balance the amount is payable to not paid within the Ceding Companyprescribed period, the balance due will be subtracted from the reinsurance premium payable by the Ceding Company for the current month. The reinsurance premiums for all of the reinsurance risks listed on the statement will be delinquent if delinquent. D. If the monthly statement shows a net reinsurance premium Reinsurance Premium balance is not received or paid payable to Cedent, Reinsurer shall remit Reinsurer's payment to Cedent within thirty (30) thirty days after the close of the month. When the reinsurance premiums are deemed delinquent, as defined above, a compound interest penalty may be assessed each month the premiums remain delinquent. Interest shall be calculated from the day following the date the premiums are due and payable to the day such premium payment is mailed or the last day of the accounting period, whichever comes first, regardless of holidays and weekends. The rate of interest charged each month shall be the lesser of (i) the 30 Day Treasury Bill rate as published in the Money Rate Section or any successor section of the Wall Street Journal on the first business day following the date the premiums are deemed delinquent or (ii) the maximum rate allowed by law in the State of Connecticut. Premiums and interest penalties that remain unpaid shall be carried forward into the next monthreceiving Cedent's interest penalty calculationstatement.

Payment of Reinsurance Premiums. For Automatic and Facultative Reinsurance, following the close of each calendar month, the Ceding Company will send the Reinsurer a statement and a listing of new business, changes, and terminations. The Reinsurer will refund to the Ceding Company all unearned Annual YRT Reinsurance Premiums not including policy fees, less applicable allowances, arising from reductions, terminations and changes as described in Article IXVIII. Annual YRT Reinsurance Premiums, as calculated in Exhibit I, based on the Reinsured Net Amount at Risk, as defined in Schedule B, are paid annual in advance each Last Survivor Excess Pool Between HLIC and Transamerica Effective 01/01/02 month for those policies renewing during that month. Single Life Excess Pool Between HLAIC and Transamerica Effective 11/01/2002 Fac / 12/01/2002 Auto If a net reinsurance premium balance is payable to the Reinsurer, the Ceding Company will forward this balance within (30) thirty days after the close of each month. If a net reinsurance premium balance is payable to the Ceding Company, the balance due will be subtracted from the reinsurance premium payable by the Ceding Company for the current month. The reinsurance premiums for all of the reinsurance risks listed on the statement will be delinquent if the net reinsurance premium balance is not received or paid within (30) thirty days after the close of the month. When the reinsurance premiums are deemed delinquent, as defined above, a compound interest penalty may be assessed each month the premiums remain delinquent. Interest shall be calculated from the day following the date the premiums are due and payable to the day such premium payment is mailed or the last day of the accounting period, whichever comes first, regardless of holidays and weekends. The rate of interest charged each month shall be the lesser of (i) the 30 Day Treasury Bill rate as published in the Money Rate Section or any successor section of the Wall Street Journal on the first business day following the date the premiums are deemed delinquent or (ii) the maximum rate allowed by law in the State of Connecticut. Premiums and interest penalties that remain unpaid shall be carried forward into the next month's interest penalty calculation.

Payment of Reinsurance Premiums. For Automatic A. Cedent shall prepare and Facultative Reinsurancesubmit to Reinsurer a monthly statement, either electronically or by regular U.S. postal service, which will provide the pertinent policy premium details in a mutually agreed upon report format, within thirty (30) days following the close last day of each the same calendar month. The net premiums due will be (i) the balance of the Reinsurance Premiums due on Covered Policies that were in force at the end of the immediately preceding calendar month and had a policy anniversary during the immediately preceding calendar month, plus (ii) Reinsurance Premiums due on new business reinsured during the Ceding Company will send current month, minus (iii) the Reinsurer a statement refunds of Reinsurance Premiums due Cedent in the event of death, lapses and a listing of new business, changes, and terminations. The Reinsurer will refund plus or minus (iv) Reinsurance Premium adjustments due to a misstatement of age or sex, without interest. B. If the Ceding Company all unearned Annual YRT Reinsurance Premiums not including policy fees, less applicable allowances, arising from reductions, terminations and changes as described in Article IX. Annual YRT Reinsurance Premiums, as calculated in Exhibit I, based on the Reinsured Net Amount at Risk, as defined in Schedule B, are paid annual in advance each month for those policies renewing during that month. Single Life Excess Pool Between HLAIC and Transamerica Effective 11/01/2002 Fac / 12/01/2002 Auto If monthly statement shows a net reinsurance premium Reinsurance Premium balance is payable to the Reinsurer, the Ceding Company will forward Cedent shall remit this balance amount due Reinsurer within thirty (30) thirty days after the close of each monthdays. If a net reinsurance premium balance the amount is payable to not paid within the Ceding Companyprescribed period, the balance due will be subtracted from the reinsurance premium payable by the Ceding Company for the current month. The reinsurance premiums for all of the reinsurance risks listed on the statement will be delinquent if delinquent. Disputed amounts may be withheld and will be resolved in accordance with the terms of this Agreement. C. If the monthly statement shows a net reinsurance premium Reinsurance Premium balance is not received or paid payable to Cedent, Reinsurer shall remit Reinsurer’s payment to Cedent within thirty (30) thirty days after the close of the monthreceiving Cedent’s statement on undisputed amounts. When the reinsurance premiums are deemed delinquent, as defined above, a compound interest penalty Disputed amounts may be assessed each month withheld and will be resolved in accordance with the premiums remain delinquent. Interest shall be calculated from the day following the date the premiums are due and payable to the day such premium payment is mailed or the last day terms of the accounting period, whichever comes first, regardless of holidays and weekends. The rate of interest charged each month shall be the lesser of (i) the 30 Day Treasury Bill rate as published in the Money Rate Section or any successor section of the Wall Street Journal on the first business day following the date the premiums are deemed delinquent or (ii) the maximum rate allowed by law in the State of Connecticut. Premiums and interest penalties that remain unpaid shall be carried forward into the next month's interest penalty calculationthis Agreement.

Payment of Reinsurance Premiums. For Automatic and Facultative Reinsurance, following the close of each calendar month, the Ceding Company will send the Reinsurer a statement and a listing of new business, changes, and terminations. The Reinsurer will refund to the Ceding Company all unearned Annual YRT Reinsurance Premiums not including policy fees, less applicable allowances, arising from reductions, terminations and changes as described in Article IXVIII. Annual YRT Last Survivor Excess Pool Between HLAIC and Transamerica Effective 01/01/02 Reinsurance Premiums, as calculated in Exhibit I, based on the Reinsured Net Amount at Risk, as defined in Schedule B, are paid annual in advance each month for those policies renewing during that month. Single Life Excess Pool Between HLAIC and Transamerica Effective 11/01/2002 Fac / 12/01/2002 Auto If a net reinsurance premium balance is payable to the Reinsurer, the Ceding Company will forward this balance within (30) thirty days after the close of each month. If a net reinsurance premium balance is payable to the Ceding Company, the balance due will be subtracted from the reinsurance premium payable by the Ceding Company for the current month. The reinsurance premiums for all of the reinsurance risks listed on the statement will be delinquent if the net reinsurance premium balance is not received or paid within (30) thirty days after the close of the month. When the reinsurance premiums are deemed delinquent, as defined above, a compound interest penalty may be assessed each month the premiums remain delinquent. Interest shall be calculated from the day following the date the premiums are due and payable to the day such premium payment is mailed or the last day of the accounting period, whichever comes first, regardless of holidays and weekends. The rate of interest charged each month shall be the lesser of (i) the 30 Day Treasury Bill rate as published in the Money Rate Section or any successor section of the Wall Street Journal on the first business day following the date the premiums are deemed delinquent or (ii) the maximum rate allowed by law in the State of Connecticut. Premiums and interest penalties that remain unpaid shall be carried forward into the next month's interest penalty calculation.

Payment of Reinsurance Premiums. For Automatic A. Cedent shall prepare and Facultative Reinsurancesubmit to Reinsurer, electronically or by regular U.S. postal service, a monthly statement, which will provide the pertinent policy premium details in a mutually agreed upon report format, within thirty (30) days following the close last day of each the same calendar month. The net monthly premiums due will be (i) the balance of Reinsurance Premiums due on Covered Policies that were in force at the end of the immediately preceding calendar month and had a policy anniversary during the immediately preceding calendar month, plus (ii) Reinsurance Premiums due on new business reinsured during the Ceding Company will send current month, minus (iii) the Reinsurer a statement refunds of Reinsurance Premiums due Cedent in the event of death, lapses NYLIAC IMPAIRED RISK FACULTATIVE REINSURANCE AGREEMENT and a listing of new business, changes, and terminations. The Reinsurer will refund plus or minus (iv) any adjustment to the Ceding Company all unearned Annual YRT Reinsurance Premiums not including policy feesdue to a misstatement of age or sex, less applicable allowances, arising from reductions, terminations and changes as described in Article IX. Annual YRT Reinsurance Premiums, as calculated in Exhibit I, based on without interest. B. If the Reinsured Net Amount at Risk, as defined in Schedule B, are paid annual in advance each month for those policies renewing during that month. Single Life Excess Pool Between HLAIC and Transamerica Effective 11/01/2002 Fac / 12/01/2002 Auto If monthly statement shows a net reinsurance premium Reinsurance Premium balance is payable to the Reinsurer, the Ceding Company will forward Cedent shall remit this balance amount due Reinsurer within thirty (30) thirty days after following the close last day of each monththe calendar month for which the statement was generated. If a net reinsurance premium balance the amount is payable to not paid within the Ceding Companyprescribed period, the balance due will be subtracted from the reinsurance premium payable by the Ceding Company for the current month. The reinsurance premiums for all of the reinsurance risks listed on the statement will be delinquent if delinquent. C. If the monthly statement shows a net reinsurance premium Reinsurance Premium balance is not received or paid payable to Cedent, Reinsurer shall remit Reinsurer's payment to Cedent within thirty (30) thirty days after the close of the month. When the reinsurance premiums are deemed delinquent, as defined above, a compound interest penalty may be assessed each month the premiums remain delinquent. Interest shall be calculated from the day following the date the premiums are due and payable to the day such premium payment is mailed or the last day of the accounting period, whichever comes first, regardless of holidays and weekends. The rate of interest charged each month shall be the lesser of (i) the 30 Day Treasury Bill rate as published in the Money Rate Section or any successor section of the Wall Street Journal on the first business day following the date the premiums are deemed delinquent or (ii) the maximum rate allowed by law in the State of Connecticut. Premiums and interest penalties that remain unpaid shall be carried forward into the next monthreceiving Cedent's interest penalty calculationstatement.

Payment of Reinsurance Premiums. For Automatic and Facultative Reinsurance, following the close of each calendar month, the Ceding Company will send the Reinsurer a statement and a listing of new business, changes, and terminations. The Reinsurer will refund to the Ceding Company all unearned Annual YRT Reinsurance Premiums not including policy fees, less applicable allowances, arising from reductions, terminations and changes as described in Article IX. Annual YRT Reinsurance Premiums, as calculated in Exhibit I, based on the Reinsured Net Amount at Risk, as defined in Schedule B, are paid annual in advance each month for those policies renewing during that month. Single Life Excess Pool Between HLAIC HLIC and Transamerica Effective 11/01/2002 Fac / 12/01/2002 Auto If a net reinsurance premium balance is payable to the Reinsurer, the Ceding Company will forward this balance within (30) thirty days after the close of each month. If a net reinsurance premium balance is payable to the Ceding Company, the balance due will be subtracted from the reinsurance premium payable by the Ceding Company for the current month. The reinsurance premiums for all of the reinsurance risks listed on the statement will be delinquent if the net reinsurance premium balance is not received or paid within (30) thirty days after the close of the month. When the reinsurance premiums are deemed delinquent, as defined above, a compound interest penalty may be assessed each month the premiums remain delinquent. Interest shall be calculated from the day following the date the premiums are due and payable to the day such premium payment is mailed or the last day of the accounting period, whichever comes first, regardless of holidays and weekends. The rate of interest charged each month shall be the lesser of (i) the 30 Day Treasury Bill rate as published in the Money Rate Section or any successor section of the Wall Street Journal on the first business day following the date the premiums are deemed delinquent or (ii) the maximum rate allowed by law in the State of Connecticut. Premiums and interest penalties that remain unpaid shall be carried forward into the next month's interest penalty calculation.