Common use of Plan of Reinsurance Clause in Contracts

Plan of Reinsurance. A. Reinsurance of Life risks shall be on the Yearly Renewable Term plan. The risk amount for policy years one through five shall be estimated by the Company at issue. At the end of the five years and each subsequent five year period, the Company shall provide the North American Re with reinsurance risk amounts for the ensuing five years. However, increases in the reinsured risk amount shall be limited to an ultimate maximum of $1,000,000. Reinsurance premiums and reinsurance death benefits will be based on the reinsurance risk amounts so reported to North American Re regardless of what the actual policy risk amounts are.