Recapture Payment. (a) In the event the Reinsured Policies are recaptured in full (including if this Agreement is rejected by any liquidator, receiver, rehabilitator, trustee or similar Person acting on behalf of the Ceding Company (a “Receiver”)), a net accounting and settlement as to any balance due under this Agreement shall be undertaken by the Ceding Company which calculations shall be as of the Recapture Effective Date in an amount equal to the net result of the following, in each case calculated as of the Recapture Effective Date (the “Recapture Payment”): (i) the net amount due to the Ceding Company or the Reinsurer, as applicable, pursuant to Sections 7.03(a) and (b); and (ii) if the Ceding Company is electing to recapture solely pursuant to Section 11.02(d)(v) and there is no basis to recapture under Section 11.02(b) or clauses (i), (ii), (iii) or (iv) of Section 11.02(d), an amount payable to the Reinsurer equal to the aggregate amount of Ceding Commissions paid by the Reinsurer that are unearned by the Ceding Company as of the Recapture Effective Date, where Ceding Commissions shall be considered earned on a straight-line basis and considered fully earned on the scheduled maturity date of the applicable Reinsured Policy (or renewal thereof, if applicable). (b) Within ten (10) Business Days following the later of the Recapture Effective Date or becoming aware that a recapture event has occurred, the Ceding Company shall deliver to the Reinsurer a final Monthly Accounting Report starting as of the prior Monthly Accounting Report and ending on the Recapture Effective Date together with the amount calculated pursuant to clause (ii) of the preceding sentence (as applicable) (the “Terminal Accounting Report”), and all amounts required to be paid in connection with the final settlement (including all Account Adjustments and Reinsurer Top-Up Payments) set forth in such Terminal Accounting Report shall be paid in accordance with Section 7.03 as if the Recapture Effective Date were the end of the month. In addition to all amounts required to be paid in connection with the final settlement, the Reinsurer shall pay an amount equal to the Accounts Required Reserves to the Ceding Company, such payment to be effectuated by the Ceding Company retaining assets in the Accounts with an aggregate Statutory Carrying Value equal to the Accounts Required Reserves. Following the making of all payments required to be made by the Reinsurer hereunder (including any Account Adjustments and/or Reinsurer Top-Up Payments and the payment of the Accounts Required Reserves to the Ceding Company) any remaining assets in the Accounts or the Trust Account shall be delivered to one or more accounts as directed by the Reinsurer. (c) Either party’s right to terminate the reinsurance provided hereunder will not prejudice its right to collect amounts owed to it hereunder, including applicable interest as specified in Section 17.02, for the period during which such reinsurance was in force, through and including any notice period. (d) In the event of a renewal recapture under Section 11.02(c), the Reinsured Liability with respect to such Reinsured Policy shall be extinguished upon the Reinsurer’s settlement of those items in Section 7.03 and the payment of the Quota Share of the Net Statutory Reserves with respect to the recaptured policy (such payment to be effectuated by the Ceding Company retaining assets in the Accounts with an aggregate book value equal to the Net Statutory Reserves), and in each case, solely related to such Reinsured Policy. (e) For the avoidance of doubt, in the event this Agreement terminates for new business pursuant to Section 11.01 Reinsurer shall remain liable for the Reinsured Policies ceded hereunder in accordance with the terms of this Agreement. Reinsurer shall not be liable for any risks arising after the recapture date of any recaptured Reinsured Policies as provided for in Section 11.02.
Appears in 1 contract
Recapture Payment.
(a) In the event the Reinsured Policies are recaptured in full (including if this Agreement is rejected by any liquidator, receiver, rehabilitator, trustee or similar Person acting on behalf of the Ceding Company (a “Receiver”)), a net accounting and settlement as to any balance due under this Agreement shall be undertaken by the Ceding Company in accordance with Article VII, which calculations shall be as of the Recapture Effective Date in an amount equal to the net result of the following, in each case calculated as of the Recapture Effective Date (the “Recapture Payment”):
(i) the net amount due to the Ceding Company or the Reinsurer, as applicable, pursuant to Sections 7.03(a) and (b); and
(ii) if the Ceding Company is electing to recapture solely pursuant to Section 11.02(d)(v) and there is no basis to recapture under Section 11.02(b) or clauses (i), (ii), (iii) or (iv) of Section 11.02(d), an amount payable to the Reinsurer equal to the aggregate amount of Ceding Commissions paid by the Reinsurer that are unearned by the Ceding Company as of the Recapture Effective Date, where Ceding Commissions shall be considered earned on a straight-line basis and considered fully earned on the scheduled maturity date of the applicable Reinsured Policy (or renewal thereof, if applicable).
(b) Within ten (10) Business Days following the later of the Recapture Effective Date or becoming aware that a recapture event has occurred, the Ceding Company shall deliver to the Reinsurer a final Monthly Accounting Report starting as of the prior Monthly Accounting Report and ending on the Recapture Effective Date together with the amount calculated pursuant to clause (ii) of the preceding sentence (as applicable) (the “Terminal Accounting Report”), and all amounts required to be paid in connection with the final settlement (including all Account Adjustments and Reinsurer Top-Up Payments) set forth in such Terminal Accounting Report shall be paid in accordance with Section 7.03 as if the Recapture Effective Date were the end of the month. In addition to all amounts required to be paid in connection with the final settlement, the Reinsurer shall pay an amount equal to the Accounts Required Reserves to the Ceding Company, such payment to be effectuated by the Ceding Company retaining assets in the Accounts with an aggregate Statutory Carrying Value fair value equal to the Accounts Required Reserves. Following the making of all payments required to be made by the Reinsurer hereunder (including any Account Adjustments and/or Reinsurer Top-Up Payments and the payment of the Accounts Required Reserves to the Ceding Company) any remaining assets in the Accounts or the Trust Account shall be delivered to one or more accounts as directed by the Reinsurer. .
(cb) Either party’s right to terminate the reinsurance provided hereunder will not prejudice its right to collect amounts owed to it hereunder, including applicable interest as specified in Section 17.02, for the period during which such reinsurance was in force, through and including any notice period. .
(dc) In the event of a renewal recapture under Section 11.02(c), the Reinsured Liability with respect to such Reinsured Policy shall be extinguished upon the Reinsurer’s settlement of those items in Section 7.03 and the payment of the Quota Share of the Net Statutory Reserves and a pro-rata allocation of the IMR with respect to the recaptured policy (such payment to be effectuated by the Ceding Company retaining assets in the Accounts with an aggregate book value equal to the Net Statutory ReservesReserves and pro-rata allocation of the IMR), and in each case, solely related to such Reinsured Policy.
(ed) For the avoidance of doubt, in the event this Agreement terminates for new business pursuant to Section 11.01 Reinsurer shall remain liable for the Reinsured Policies ceded hereunder in accordance with the terms of this Agreement. Reinsurer shall not be liable for any risks arising after the recapture date of any recaptured Reinsured Policies as provided for in Section 11.02. .
Appears in 1 contract
Samples: Funds Withheld Coinsurance and Modified Coinsurance Agreement (Midwest Holding Inc.)
Recapture Payment. (a) Upon or following the occurrence of any Recapture Event, the Ceding Company shall have the right at any time, and in its sole discretion, during the continuation of the event that constitute such Recapture Event, within ninety (90) days of the occurrence of the applicable Recapture Event, on no less than thirty calendar days and no more than ninety (90) calendar days prior written notice to the Reinsurer, to terminate this Agreement and recapture all of the Reinsured Policies. Any notice of termination and recapture by the Ceding Company pursuant to Section 11.02(c) shall state the effective date and time of the termination and recapture (the “Recapture Effective Time”), which shall be between thirty (30) and ninety (90) calendar days following the Reinsurer’s receipt of such notice.
(ab) In the event the Reinsured Policies are recaptured in full (including if this Agreement is rejected by any liquidator, receiver, rehabilitator, trustee or similar Person acting on behalf of the Ceding Company (a “Receiver”)), a net accounting and settlement as to any balance due under this Agreement shall be undertaken by the Ceding Company in accordance with Article VII, which calculations shall be as of the Recapture Effective Date in an amount equal to the net result of the following, in each case calculated as of the Recapture Effective Date Time. Within twenty (the “Recapture Payment”):
(i) the net amount due to the Ceding Company or the Reinsurer, as applicable, pursuant to Sections 7.03(a) and (b); and
(ii) if the Ceding Company is electing to recapture solely pursuant to Section 11.02(d)(v) and there is no basis to recapture under Section 11.02(b) or clauses (i), (ii), (iii) or (iv) of Section 11.02(d), an amount payable to the Reinsurer equal to the aggregate amount of Ceding Commissions paid by the Reinsurer that are unearned by the Ceding Company as of the Recapture Effective Date, where Ceding Commissions shall be considered earned on a straight-line basis and considered fully earned on the scheduled maturity date of the applicable Reinsured Policy (or renewal thereof, if applicable).
(b) Within ten (1020) Business Days following the later of the Recapture Effective Date or becoming aware that a recapture event has occurredTime, the Ceding Company shall deliver to the Reinsurer a final Monthly Accounting Report starting setting forth the final Monthly Settlement Amount and final Funds Withheld Adjustment as of the prior Monthly Accounting Report and ending on the Recapture Effective Date together with the amount calculated pursuant to clause Time (ii) of the preceding sentence (as applicable) (collectively, the “Terminal Accounting Report”), . The final Monthly Settlement Amount and all amounts required to be paid in connection with the final settlement (including all Account Adjustments and Reinsurer Top-Up Payments) Funds Withheld Adjustment set forth in such Terminal Accounting Report shall be paid in accordance with Section 7.03 (which, for the avoidance of doubt, shall include any amounts to be released from the Post-Effective Time IMR during such final Monthly Accounting Period). Following the settlement between the parties as if set forth in the Terminal Accounting Report, the aggregate Statutory Carrying Value of the assets in the Funds Withheld Account plus the Policy Loan Balance equal to the Statutory Basis Reserve shall be retained by the Ceding Company, and the Funds Withheld Account shall be terminated and the remaining assets therein shall be transferred to the Reinsurer. In addition, within twenty (20) Business Days following the Recapture Effective Date were the end of the month. In addition to all amounts required to be paid in connection with the final settlementTime, the Reinsurer shall shall, unless such recapture is due to a failure of the Ceding Company to pay an amount due to the Reinsurer or by mutual written agreement by the parties, pay to the Ceding Company an amount equal to (i) the Accounts Required Reserves Unamortized Portion of the Negative Ceding Commission as of the Recapture Effective Time, plus (ii) in the event such recapture is due to the Ceding Company, such payment to be effectuated a recapture by the Ceding Company retaining pursuant to Section 11.02(c)(i), an amount equal to $1,000,000.00, by wire transfer of immediately available funds (the total amount payable under clause (i) and clause (ii), if applicable, the “Recapture Fee”). In the event the Reinsurer fails to pay any such amounts owed by the Reinsurer to the Ceding Company under this Section 11.03 by the date contemplated herein, the Ceding Company shall be entitled to withdraw assets in from the Accounts Trust Account with an aggregate Statutory Carrying Value equal to the Accounts Required Reserves. Following the making of all payments required to be made by the Reinsurer hereunder (including any Account Adjustments and/or Reinsurer Top-Up Payments and the payment of the Accounts Required Reserves to the Ceding Company) any remaining assets in the Accounts or the Trust Account shall be delivered to one or more accounts as directed by the Reinsurer. such unpaid obligation.
(c) Either party’s right to terminate the reinsurance provided hereunder will not prejudice its right to collect amounts owed to it hereunder, including applicable interest as specified in Section 17.0218.02, for the period during which such reinsurance was in force, through and including any notice period.
(dUpon recapture by the Ceding Company pursuant to Section 11.02(b) In the event of a renewal recapture under or Section 11.02(c), the Reinsured Liability with respect to such Reinsured Policy shall be extinguished upon Ceding Company will only recapture liabilities and obligations arising under the Reinsurer’s settlement express terms of those items in Section 7.03 and the payment of the Quota Share of the Net Statutory Reserves with respect to the recaptured policy (such payment to be effectuated by the Ceding Company retaining assets in the Accounts with an aggregate book value equal to the Net Statutory Reserves), and in each case, solely related to such Reinsured Policy.
(e) For the avoidance of doubt, in the event this Agreement terminates for new business pursuant to Section 11.01 Reinsurer shall remain liable for the Reinsured Policies ceded hereunder in accordance with the terms of this Agreement. Reinsurer shall and will not be liable for any risks Reinsurer Extra-Contractual Obligations arising before the effective time of such recapture, or if arising after such effective time, to the recapture date extent attributable to a direction or request of the Reinsurer or any of its Affiliates.
(d) The payment of any recaptured Reinsured Policies as provided amounts owed under Terminal Settlement Report in accordance with Section 11.03(b) and the Recapture Fee, if applicable, upon the termination and recapture of this Agreement shall constitute a complete and final release of both parties in respect of any and all known and unknown present and future obligations or liabilities of any nature to the other party for in Section 11.02. the reinsurance coverage under this Agreement.
Appears in 1 contract
Samples: Funds Withheld Coinsurance Agreement (National Western Life Group, Inc.)
Recapture Payment.
(a) In the event the Reinsured Policies are recaptured in full (including if this Agreement is rejected by any liquidator, receiver, rehabilitator, trustee or similar Person acting on behalf of the Ceding Company (a “Receiver”)), a net accounting and settlement as to any balance due under this Agreement shall be undertaken by the Ceding Company in accordance with Article VII, which calculations shall be as of the Recapture Effective Date in an amount equal to the net result of the following, in each case calculated as of the Recapture Effective Date (the “Recapture Payment”):
(i) the net amount due to the Ceding Company or the Reinsurer, as applicable, pursuant to Sections 7.03(a) and (b); and
(ii) if the Ceding Company is electing to recapture solely pursuant to Section 11.02(d)(v) and there is no basis to recapture under Section 11.02(b) or clauses (i), (ii), (iii) or (iv) of Section 11.02(d), an amount payable to the Reinsurer equal to the aggregate amount of Ceding Commissions paid by the Reinsurer that are unearned by the Ceding Company as of the Recapture Effective Date, where Ceding Commissions shall be considered earned on a straight-line basis and considered fully earned on the scheduled maturity date of the applicable Reinsured Policy (or renewal thereof, if applicable).
(b) Within ten (10) Business Days following the later of the Recapture Effective Date or becoming aware that a recapture event has occurred, the Ceding Company shall deliver to the Reinsurer a final Monthly Accounting Report starting as of the prior Monthly Accounting Report and ending on the Recapture Effective Date together with the amount calculated pursuant to clause (ii) of the preceding sentence (as applicable) (the “Terminal Accounting Report”), and all amounts required to be paid in connection with the final settlement (including all Account Adjustments and Reinsurer Top-Up PaymentsAdjustments) set forth in such Terminal Accounting Report shall be paid in accordance with Section 7.03 as if the Recapture Effective Date were the end of the month. In addition to all amounts required to be paid in connection with the final settlement, the Reinsurer shall pay an amount equal to the Accounts Required Reserves to the Ceding Company, such payment to be effectuated by the Ceding Company retaining assets in the Accounts with an aggregate Statutory Carrying Value fair value equal to the Accounts Required Reserves. Following the making of all payments required to be made by the Reinsurer hereunder (including any Account Adjustments and/or Reinsurer Top-Up Payments and the payment of the Accounts Required Reserves to the Ceding Company) any remaining assets in the Accounts or the Trust Account shall be delivered to one or more accounts as directed by the Reinsurer. .
(cb) Either party’s right to terminate the reinsurance provided hereunder will not prejudice its right to collect amounts owed to it hereunder, including applicable interest as specified in Section 17.02, for the period during which such reinsurance was in force, through and including any notice period. .
(dc) In the event of a renewal recapture under Section 11.02(c) or a hedging recapture under 11.02(f), the Reinsured Liability with respect to such Reinsured Policy shall be extinguished upon the Reinsurer’s settlement of those items in Section 7.03 and the payment of the Quota Share of the Net Statutory Reserves with respect to the recaptured policy (such payment to be effectuated by the Ceding Company retaining assets in the Accounts with an aggregate book value equal to the Net Statutory Reserves), and in each case, solely related to such Reinsured Policy.
(ed) For the avoidance of doubt, in the event this Agreement terminates for new business pursuant to Section 11.01 Reinsurer shall remain liable for the Reinsured Policies ceded hereunder in accordance with the terms of this Agreement. Reinsurer shall not be liable for any risks have no further liabilities or obligations arising after the recapture date of any recaptured Reinsured Policies as provided for in Section 11.02. .
Appears in 1 contract
Recapture Payment.
(a) In the event the Reinsured Policies are recaptured in full (including if this Agreement is rejected by any liquidator, receiver, rehabilitator, trustee or similar Person acting 46753330.38 on behalf of the Ceding Company (a “Receiver”)), a net accounting and settlement as to any balance due under this Agreement shall be undertaken by the Ceding Company in accordance with Article VII, which calculations shall be as of the Recapture Effective Date in an amount equal to the net result of the following, in each case calculated as of the Recapture Effective Date Date. Within twenty (the “Recapture Payment”):
(i) the net amount due to the Ceding Company or the Reinsurer, as applicable, pursuant to Sections 7.03(a) and (b); and
(ii) if the Ceding Company is electing to recapture solely pursuant to Section 11.02(d)(v) and there is no basis to recapture under Section 11.02(b) or clauses (i), (ii), (iii) or (iv) of Section 11.02(d), an amount payable to the Reinsurer equal to the aggregate amount of Ceding Commissions paid by the Reinsurer that are unearned by the Ceding Company as of the Recapture Effective Date, where Ceding Commissions shall be considered earned on a straight-line basis and considered fully earned on the scheduled maturity date of the applicable Reinsured Policy (or renewal thereof, if applicable).
(b) Within ten (1020) Business Days following the later of the Recapture Effective Date or becoming aware that a recapture event has occurredDate, the Ceding Company shall deliver to the Reinsurer a final Monthly Accounting Report starting setting forth the final Monthly Net Settlement Amount and final Funds Withheld Adjustment as of the prior Monthly Accounting Report and ending on the Recapture Effective Date together with the amount calculated pursuant to clause (ii) of the preceding sentence (as applicable) (collectively, the “Terminal Accounting Report”), . The final Monthly Net Settlement Amount and all amounts required to be paid in connection with the final settlement (including all Account Adjustments and Reinsurer Top-Up Payments) Funds Withheld Adjustment set forth in such Terminal Accounting Report shall be paid in accordance with Section 7.03 7.03. Following the settlement between the parties as set forth in the Terminal Accounting Report, the assets in the Funds Withheld Account (including the Contract Loan Balance) shall be retained by the Ceding Company (including for the avoidance of doubt, the IMR), and the Funds Withheld Account shall be terminated. In addition, in the event of recapture by the Ceding Company pursuant to clause (A) or (B) of Section 11.03(c)(i), at the election of the Ceding Company in its sole discretion, the Reinsurer shall, within twenty (20) Business Days following the Recapture Effective Date, pay to the Ceding Company the Recapture Fee, if any, as of the Recapture Effective Date were by wire transfer of immediately available funds, in which case the end Reinsurer’s payment of such Recapture Fee shall constitute a complete and final release of all obligations and liabilities, whether known or unknown, of the monthReinsurer to the Ceding Company under this Agreement. In addition the event the Reinsurer fails to all pay any such amounts required owed by the Reinsurer to be paid in connection with the final settlementCeding Company under this Section 11.04 by the date contemplated herein, the Reinsurer Ceding Company shall pay be entitled to withdraw assets from the Trust Account with an amount aggregate Fair Market Value equal to such unpaid obligation.
(b) Except as set forth in Section 11.04(a) with respect to payment of the Accounts Required Reserves Recapture Fee to the extent elected by the Ceding Company, such payment to be effectuated by the Ceding Company retaining assets in the Accounts with an aggregate Statutory Carrying Value equal to the Accounts Required Reserves. Following the making of all payments required to be made by the Reinsurer hereunder (including any Account Adjustments and/or Reinsurer Top-Up Payments and the payment of the Accounts Required Reserves to the Ceding Company) any remaining assets in the Accounts or the Trust Account shall be delivered to one or more accounts as directed by the Reinsurer.
(c) Either either party’s right to terminate and recapture the reinsurance provided hereunder will pursuant to Section 11.03 shall not prejudice its right to collect amounts and payments owed to it hereunderhereunder including, including without limitation, applicable interest as specified in Section 17.0218.02, for the period during which such reinsurance was in force, through and including any notice periodperiod and on account of Losses arising from breaches or violations of this Agreement prior to the Recapture Effective Date subject to the other terms, conditions and limitations of this Agreement.
For the avoidance of doubt and without limitation of the immediately preceding sentence, to the extent the Reinsurer shall have failed to pay any amount required to be paid by the Reinsurer to the Ceding Company under Section 5.01 and Schedule XV on any due date therefor (das set forth in Schedule XV) In arising prior to the Recapture Effective Date, the Reinsurer shall continue to be liable for such amount notwithstanding such termination and recapture of this Agreement, it being understood that in the event of a renewal such termination and recapture of this Agreement the Reinsurer shall have no liability for and shall not be required to pay (whether at the time of such recapture or termination or any time thereafter) to the Ceding Company any amount due under Section 11.02(c), 5.01 and Schedule XV that was scheduled to be paid at any time after the Reinsured Liability with respect Recapture Effective Date. Notwithstanding anything contained in this Agreement or this Section 11.04(b) to such Reinsured Policy shall be extinguished upon the Reinsurer’s settlement of those items in Section 7.03 and the payment contrary (but without limitation of the Quota Share of the Net Statutory Reserves with respect to the recaptured policy (such payment to be effectuated by the Ceding Company retaining assets in the Accounts with an aggregate book value equal to the Net Statutory Reservesimmediately preceding sentence), and in each case, solely related to such Reinsured Policy.
(e) For for the avoidance of doubt, it is further acknowledged and agreed that in the event this Agreement terminates for is terminated as to the reinsurance of all new business policies pursuant to Section 11.01 11.02(a), the Reinsurer shall remain liable for the Reinsured Policies ceded hereunder in accordance with the terms of this Agreement. Reinsurer shall not continue to be liable for any risks arising amount required to be paid by the Reinsurer to the Ceding Company under Section 5.01 and Schedule XV without diminution, regardless of whether such amount is scheduled to paid prior to, on or after the recapture effective date of any recaptured Reinsured Policies as provided for in Section 11.02. such termination.
Appears in 1 contract
Samples: Funds Withheld Coinsurance Agreement (National Western Life Group, Inc.)
Recapture Payment.
(a) In the event the Reinsured Policies are recaptured in full (including if this Agreement is rejected by any liquidator, receiver, rehabilitator, trustee or similar Person acting on behalf of the Ceding Company (a “Receiver”)), a net accounting and settlement as to any balance due under this Agreement shall be undertaken by the Ceding Company in accordance with Article VII, which calculations shall be as of the Recapture Effective Date in an amount equal to the net result of the following, in each case calculated as of the Recapture Effective Date (the “Recapture Payment”):
(i) the net amount due to the Ceding Company or the Reinsurer, as applicable, pursuant to Sections 7.03(a) and (b); and
(ii) if the Ceding Company is electing to recapture solely pursuant to Section 11.02(d)(v) and there is no basis to recapture under Section 11.02(b) or clauses (i), (ii), (iii) or (iv) of Section 11.02(d), an amount payable to the Reinsurer equal to the aggregate amount of Ceding Commissions paid by the Reinsurer that are unearned by the Ceding Company as of the Recapture Effective Date, where Ceding Commissions shall be considered earned on a straight-line basis and considered fully earned on the scheduled maturity date of the applicable Reinsured Policy (or renewal thereof, if applicable).
(b) Within ten (10) Business Days following the later of the Recapture Effective Date or becoming aware that a recapture event has occurred, the Ceding Company shall deliver to the Reinsurer a final Monthly Accounting Report starting as of the prior Monthly Accounting Report and ending on the Recapture Effective Date together with the amount calculated pursuant to clause (ii) of the preceding sentence (as applicable) (the “Terminal Accounting Report”), and all amounts required to be paid in connection with the final settlement (including all Account Adjustments and Reinsurer Top-Up Payments) set forth in such Terminal Accounting Report shall be paid in accordance with Section 7.03 as if the Recapture Effective Date were the end of the month. In addition to all amounts required to be paid in connection with the final settlement, the Reinsurer shall pay an amount equal to the Accounts Required Reserves to the Ceding Company, such payment to be effectuated by the Ceding Company retaining assets in the Accounts with an aggregate Statutory Carrying Value fair value equal to the Accounts Required Reserves. Following the making of all payments required to be made by the Reinsurer hereunder (including any Account Adjustments and/or Reinsurer Top-Up Payments and the payment of the Accounts Required Reserves to the Ceding Company) any remaining assets in the Accounts or the Trust Account shall be delivered to one or more accounts as directed by the Reinsurer. .
(cb) Either party’s right to terminate the reinsurance provided hereunder will not prejudice its right to collect amounts owed to it hereunder, including applicable interest as specified in Section 17.02, for the period during which such reinsurance was in force, through and including any notice period. .
(dc) In the event of a renewal recapture under Section 11.02(c) or a hedging recapture under 11.02(f), the Reinsured Liability with respect to such Reinsured Policy shall be extinguished upon the Reinsurer’s settlement of those items in Section 7.03 and the payment of the Quota Share of the Net Statutory Reserves with respect to the recaptured policy (such payment to be effectuated by the Ceding Company retaining assets in the Accounts with an aggregate book value equal to the Net Statutory Reserves), and in each case, solely related to such Reinsured Policy.
(ed) For the avoidance of doubt, in the event this Agreement terminates for new business pursuant to Section 11.01 Reinsurer shall remain liable for the Reinsured Policies ceded hereunder in accordance with the terms of this Agreement. Reinsurer shall not be liable for any risks arising after the recapture date of any recaptured Reinsured Policies as provided for in Section 11.02. ceded
Appears in 1 contract
Samples: Funds Withheld Coinsurance and Modified Coinsurance Agreement (Midwest Holding Inc.)
Recapture Payment.
(a) In the event the Reinsured Policies are recaptured in full (including if this Agreement is rejected by any liquidator, receiver, rehabilitator, trustee or similar Person acting on behalf of the Ceding Company (a “Receiver”)), a net accounting and settlement as to any balance due under this Agreement shall be undertaken by the Ceding Company which calculations shall be as of the Recapture Effective Date in an amount equal to the net result of the following, in each case calculated as of the Recapture Effective Date (the “Recapture Payment”): ):
(i) the net amount due to the Ceding Company or the Reinsurer, as applicable, pursuant to Sections 7.03(a) and (b); and and
(ii) if the Ceding Company is electing to recapture solely pursuant to Section 11.02(d)(v) and there is no basis to recapture under Section 11.02(b) or clauses (i), (ii), (iii) or (iv) of Section 11.02(d), an amount payable to the Reinsurer equal to the aggregate amount of Ceding Commissions paid by the Reinsurer that are unearned by the Ceding Company as of the Recapture Effective Date, where Ceding Commissions shall be considered earned on a straight-line basis and considered fully earned on the scheduled maturity date of the applicable Reinsured Policy (or renewal thereof, if applicable). .
(b) Within ten (10) Business Days following the later of the Recapture Effective Date or becoming aware that a recapture event has occurred, the Ceding Company shall deliver to the Reinsurer a final Monthly Accounting Report starting as of the prior Monthly Accounting Report and ending on the Recapture Effective Date together with the amount calculated pursuant to clause (ii) of the preceding sentence (as applicable) (the “Terminal Accounting Report”), and all amounts required to be paid in connection with the final settlement (including all Account Adjustments and Reinsurer Top-Up Payments) set forth in such Terminal Accounting Report shall be paid in accordance with Section 7.03 as if the Recapture Effective Date were the end of the month. In addition to all amounts required to be paid in connection with the final settlement, the Reinsurer shall pay an amount equal to the Accounts Required Reserves to the Ceding Company, such payment to be effectuated by the Ceding Company retaining assets in the Accounts with an aggregate Statutory Carrying Value equal to the Accounts Required Reserves. Following the making of all payments required to be made by the Reinsurer hereunder (including any Account Adjustments and/or Reinsurer Top-Up Payments and the payment of the Accounts Required Reserves to the Ceding Company) any remaining assets in the Accounts or the Trust Account shall be delivered to one or more accounts as directed by the Reinsurer. .
(c) Either party’s right to terminate the reinsurance provided hereunder will not prejudice its right to collect amounts owed to it hereunder, including applicable interest as specified in Section 17.02, for the period during which such reinsurance was in force, through and including any notice period. .
(d) In the event of a renewal recapture under Section 11.02(c), the Reinsured Liability with respect to such Reinsured Policy shall be extinguished upon the Reinsurer’s settlement of those items in Section 7.03 and the payment of the Quota Share of the Net Statutory Reserves with respect to the recaptured policy (such payment to be effectuated by the Ceding Company retaining assets in the Accounts with an aggregate book value equal to the Net Statutory Reserves), and in each case, solely related to such Reinsured Policy.
(e) For the avoidance of doubt, in the event this Agreement terminates for new business pursuant to Section 11.01 Reinsurer shall remain liable for the Reinsured Policies ceded hereunder in accordance with the terms of this Agreement. Reinsurer shall not be liable for any risks arising after the recapture date of any recaptured Reinsured Policies as provided for in Section 11.02. .
Appears in 1 contract
Samples: Funds Withheld Coinsurance and Modified Coinsurance Agreement (Midwest Holding Inc.)
Recapture Payment.
(a) In the event the Reinsured Policies are recaptured in full (including if this Agreement is rejected by any liquidator, receiver, rehabilitator, trustee or similar Person acting on behalf of the Ceding Company (a “Receiver”)), a net accounting and settlement as to any balance due under this Agreement shall be undertaken by the Ceding Company in accordance with Article VII, which calculations shall be as of the Recapture Effective Date in an amount equal to the net result of the following, in each case calculated as of the Recapture Effective Date Date. Within five (the “Recapture Payment”):
(i) the net amount due to the Ceding Company or the Reinsurer, as applicable, pursuant to Sections 7.03(a) and (b); and
(ii) if the Ceding Company is electing to recapture solely pursuant to Section 11.02(d)(v) and there is no basis to recapture under Section 11.02(b) or clauses (i), (ii), (iii) or (iv) of Section 11.02(d), an amount payable to the Reinsurer equal to the aggregate amount of Ceding Commissions paid by the Reinsurer that are unearned by the Ceding Company as of the Recapture Effective Date, where Ceding Commissions shall be considered earned on a straight-line basis and considered fully earned on the scheduled maturity date of the applicable Reinsured Policy (or renewal thereof, if applicable).
(b) Within ten (105) Business Days following the later of the Recapture Effective Date or becoming aware that a recapture event has occurredDate, the Ceding Company shall deliver to the Reinsurer a final Monthly Quarterly Accounting Report starting as of the prior Monthly Accounting Report and ending on the Recapture Effective Date together with the amount calculated pursuant to clause (ii) of the preceding sentence (as applicable) (the “Terminal Accounting Report”), and all amounts required to be paid in connection with the final settlement (including all Account Adjustments and Reinsurer Top-Up Payments) Quarterly Settlement Amount set forth in such Terminal Accounting Report shall be paid in accordance with Section 7.03 as if 7.03. In addition, within ten (10) Business Days after Recapture Effective Date, the Reinsurer shall deliver to the Ceding Company a report setting forth the amount of the Recapture Payment. Within fifteen (15) Business Days after the Recapture Effective Date were the end of the month. In addition to all amounts required to be paid in connection with the final settlementDate, the Reinsurer shall pay an amount equal to the Accounts Required Reserves to the Ceding CompanyCompany an amount (the “Recapture Payment”) equal to:
(i) the Ceded Reserves, such payment plus
(ii) the amount of the Pre-Tax Reform Existing IMR that remains unamortized as of the Recapture Effective Date, divided by the Applicable Tax Gross-Up Percentage, plus
(iii) the amount of the Post-Tax Reform Existing IMR that remains unamortized as of the Recapture Effective Date, divided by the Applicable Tax Gross-Up Percentage, plus
(iv) the amount of the New Effective Date IMR that remains unamortized as of the Recapture Effective Date, divided by the Applicable Tax Gross-Up Percentage, plus
(v) the amount of the Post-Effective Date IMR as of the Recapture Effective Date plus the amount of any new interest maintenance reserve that is created on the Recapture Effective Date as a result of the recapture, minus
(vi) the Unamortized Ceding Commission; in each case, as of the Recapture Effective Date. The Reinsurer may, at its option, pay the Recapture Payment in cash by wire transfer of immediately available funds or, with the consent of the Ceding Company (which consent shall not be unreasonably withheld, conditioned or delayed), in kind with assets with an aggregate fair market value (determined in accordance with a methodology agreed to be effectuated by the Ceding Company retaining assets in and the Accounts with an aggregate Statutory Carrying Value Reinsurer that is substantially similar to the methodology set forth on Schedule IV) equal to the Accounts Required Reserves. Following the making of all payments required to be made by the Reinsurer hereunder (including any Account Adjustments and/or Reinsurer Top-Up Payments and the payment of the Accounts Required Reserves to the Ceding Company) any remaining assets in the Accounts or the Trust Account such amount; provided, that no such consent shall be delivered required with respect to one or more accounts as directed by the Reinsurer. any such assets set forth on Schedule III.
(cb) Either party’s right to terminate the reinsurance provided hereunder will not prejudice its right to collect amounts owed to it hereunder, including applicable interest as specified in Section 17.02, for the period during which such reinsurance was in force, through and including any notice period.
(d) In the event of a renewal recapture under Section 11.02(c), the Reinsured Liability with respect to such Reinsured Policy shall be extinguished upon the Reinsurer’s settlement of those items in Section 7.03 and the payment of the Quota Share of the Net Statutory Reserves with respect to the recaptured policy (such payment to be effectuated by the Ceding Company retaining assets in the Accounts with an aggregate book value equal to the Net Statutory Reserves), and in each case, solely related to such Reinsured Policy.
(e) For the avoidance of doubt, in the event this Agreement terminates for new business pursuant to Section 11.01 Reinsurer shall remain liable for the Reinsured Policies ceded hereunder in accordance with the terms of this Agreement. Reinsurer shall not be liable for any risks arising after the recapture date of any recaptured Reinsured Policies as provided for in Section 11.02.
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