Common use of REDUCTIONS, TERMINATIONS AND CHANGES Clause in Contracts

REDUCTIONS, TERMINATIONS AND CHANGES. A. Replacement or Change If there is a contractual change, or non-contractual replacement of the insurance reinsured under this Agreement where full underwriting evidence according to the Ceding Company's regular underwriting rules is not required, the insurance may continue to be reinsured with the Reinsurer at point in scale rates provided it meets the minimum reinsurance cession amount stated in Schedule A. B. Increases or Decreases 1. If the policy face amount of a risk reinsured automatically under this Agreement increases and: a. The increase is subject to new underwriting evidence, then the provisions of Article II, Section A, shall apply to the increase in reinsurance. b. The increase is not subject to new underwriting evidence, then Reinsurer will accept automatically the increase in reinsurance but not to exceed the automatic binding limit.