Premium Multiples Clause Samples

Premium Multiples. The following percentages will be applied to the reinsurance premiums set out in No. 1 above. Guaranteed Issue Non-Smoker Guaranteed Issue Smoker Simplified Issue Non-Smoker Simplified Issue Smoker The Company will retain 50% of the risk on a First Dollar Quota Share basis of each policy at issue up to a maximum limit of $1,000,000 on a per life basis. In addition, the Company will retain 50% of annual increases, up to a maximum limit of the lesser of two times the original amount retained on that life and $1,000,000. The Company will maintain its retention for COLI business separate from its retention for traditional individual life business. Any change in the net amount at risk due to changes in the cash value applicable to the policy will be shared proportionately between the Company and its reinsurers. Initial: Maximum Issue Limit of $2,000,000 per life Increases: Maximum cumulative death benefit increase is the lesser of two times the initial face amount and $2,000,000 Automatic coverage will be provided for initial issue amounts to a maximum limit of $2,000,000 per life. Automatic coverage will also extend to annual increases up to a maximum limit of the lesser of two times the original face amount and $2,000,000 on a per life basis. The Reinsurer will automatically accept 10% on a First Dollar Quota Share basis of each policy up to the following limits on a per life basis: Note: Guaranteed Issue and Simplified Issue may not be combined on any one life. The Reinsurer’s Maximum Automatic Limit on any one life is $200,000, excluding increases. In addition, the Reinsurer will automatically accept 10% on a First Dollar Quota Share basis of annual increases to a maximum limit of the lesser of two times the original amount placed with the Reinsurer and $200,000 on a per life basis.