Common use of RATES NOT GUARANTEED Clause in Contracts

RATES NOT GUARANTEED. For the reinsurance of new business, REINSURER reserves the right to change reinsurance rates after 90 days written notice. For the ongoing reinsurance of existing in force business, REINSURER will accept YRT reinsurance at the current reinsurance premium rates, as shown in Schedule B, unless CEDING COMPANY increases the current cost of insurance rates charged to the policyholder. REINSURER reserves the right to increase the current reinsurance premium rates in the event CEDING COMPANY increases current cost of insurance rates charged on the underlying policies. The maximum reinsurance premiums are equal to the statutory valuation premiums for yearly renewable term insurance at the maximum interest rates and minimum mortality rates for each year of issue. Any increases in current reinsurance premium rates will apply as of the date that the CEDING COMPANY increase in policyholder current cost of insurance rates becomes effective. CEDING COMPANY will have the right to immediate recapture of all of the reinsured business for which the overall percentage increase in reinsurance premium rates is greater than the overall percentage increase in current cost of insurance rates. CEDING COMPANY agrees to notify REINSURER of any intent to increase current cost of insurance rates charged for new or existing business.

RATES NOT GUARANTEED. For the reinsurance of new business, REINSURER reserves the right to change reinsurance rates after 90 days written notice. For the ongoing reinsurance of existing in force business, REINSURER will accept YRT reinsurance at the current reinsurance premium rates, as shown in Schedule B, unless CEDING COMPANY increases the current cost of insurance rates charged to the policyholder. REINSURER reserves the right to increase the current reinsurance premium rates in the event CEDING COMPANY increases current cost of insurance rates charged on the underlying policies. The maximum reinsurance premiums are equal to the statutory valuation premiums for yearly renewable term insurance at the maximum interest rates and minimum mortality rates for each year of issue. Any increases in current reinsurance premium rates will apply as of the date that the CEDING COMPANY increase in policyholder current cost of insurance rates becomes effective. CEDING COMPANY will have the right to immediate recapture of all of the reinsured business for which the overall percentage increase in reinsurance premium rates is greater than the overall percentage increase in current cost of insurance rates. CEDING COMPANY agrees to notify REINSURER REINSURER, of any intent to increase current cost of insurance rates charged for new or existing business.