Payment of Reinsurance Premiums. a. PREMIUM MODE. THE COMPANY may chose to pay premiums on an Annual or Monthly Mode as stated below. At the inception of this Agreement, THE COMPANY will pay premiums on an Annual Mode. At any time during the life of this Agreement, THE COMPANY may chose to change from Annual Mode to Monthly Mode and vice versa by providing THE REINSURER with written notice at least 30 days prior to change. i. Annual Mode If THE COMPANY elects to pay reinsurance premiums on an Annual Mode, then for each policy reinsured under this Agreement, premiums are due on the issue date and each subsequent policy anniversary. ii. Monthly Mode If THE COMPANY elects to pay reinsurance premiums on an Monthly Mode, then for each policy reinsured under this Agreement, monthly premiums are due on the issue date and on each subsequent policy monthly date. Each month, THE COMPANY will calculate the amount of monthly premiums as the amount equal to the product of the following three items: (1) the annual reinsurance premium as defined in the ‘REINSURANCE PREMIUM RATES’ section, (2) 1/12, and (3) the monthly adjustment factor as defined in Schedule B.
Appears in 8 contracts
Samples: Yearly Renewable Term Reinsurance Agreement (Pruco Life Variable Universal Account), Yearly Renewable Term Reinsurance Agreement (Pruco Life of New Jersey Variable Appreciable Account), Yearly Renewable Term Reinsurance Agreement (Pruco Life Variable Appreciable Account)
