Common use of Reductions and Terminations Clause in Contracts

Reductions and Terminations. In the event of the reduction, lapse, or termination of a policy or policies reinsured under this Agreement or any other agreement, the Ceding Company will, in order to maintain its full retention, reduce or terminate reinsurance on that life. The reinsured amount will be reduced, effective on the same date, by the full amount of the reduction of the affected policies. The reinsurance reduction will apply first to the policy or policies being reduced and then, on a chronological basis, to other reinsured policies on the life, beginning with the most recent policy. If the amount of reduction exceeds the risk amount reinsured, the reinsurance on the policy or policies will be terminated. If the reinsurance for a policy has been placed with more than one reinsurer, the reduction will be applied to all reinsurers pro rata to the amounts originally reinsured. If a fully retained policy on a life that is reinsured under this Agreement is terminated or reduced, the Ceding Company will reduce the existing reinsurance on that life by a corresponding amount, with the reinsurance on the most recent policy being reduced first.

Reductions and Terminations. In If any part of a Reinsured Policy is reduced or terminated, the event amount of reinsurance will also be reduced or terminated to the extent that the Company will continue to maintain its appropriate retention limit as shown in Exhibit A. The Company will not be required to assume amounts in excess of the reduction, lapse, or termination of a retention limit that was in force when the affected policy or policies reinsured under this Agreement were issued. If a Reinsured Policy lapses or any other agreementis terminated, the Ceding Company will, in order to maintain its full retention, reduce or terminate reinsurance on that lifewill also terminate. The reinsured amount will on the life with all reinsurers must be reduced, effective on the same date, by the full amount of required such that the reduction of Company maintains the affected policiessame amount as retained prior to a reduction, termination or lapse. The reinsurance reduction will apply first to the policy or policies being reduced and then, on a chronological basis, to other reinsured policies on the life, beginning with the most recent oldest policy. If a fully retained policy on a life that is reinsured under this Agreement is terminated or reduced, the Company will reduce the existing reinsurance on that life by a corresponding amount, with the reinsurance on the oldest policy being reduced first. If the amount of reduction exceeds the risk amount reinsured, the reinsurance on the policy or policies will be terminated. If the reinsurance for a policy has been placed with more than one reinsurer, the reduction will be applied to all reinsurers pro rata to the amounts originally reinsured. If a fully retained policy on a life that is reinsured under this Agreement is terminated or reduced, the Ceding Company will reduce the existing reinsurance on that life by a corresponding amount, with the reinsurance on the most recent policy being reduced firstterminate.