Common use of REINSURANCE COVERAGE Clause in Contracts

REINSURANCE COVERAGE. A. Upon the contribution of capital to the Reinsurer by its parent in the amount of at least $156 million, the Company shall automatically and obligatorily cede to the Reinsurer, and the Reinsurer shall be obligated to accept as assumed reinsurance, a 30% quota share portion of the Net Liabilities with respect to such Policies, subject to adjustment as set forth below. The Company may, in its sole discretion, change the quota share participation of the Reinsurer from time to time as of any six month anniversary date of the effective date of this Agreement upon not less than ninety (90) days prior written notice to the Reinsurer; provided, however that the quota share participation of the Reinsurer shall at all times during the term of this Agreement be a minimum of 25% and a maximum of 45%; and provided further that the Reinsurer’s quota share participation does not exceed $50 million of gross written premium for the 12 month period ended March 31, 2007, with such maximum amount subject to a 25% growth factor per 12 month period thereafter. If the Reinsurer’s quota share participation maximum of $50 million (subject to growth factor) is attained in any twelve month period ended March 31, then the quota share participation percentage, which shall apply to all premiums and losses on a pro-rated basis for such period, shall be decreased for that 12 month period even if such participation is below 25%. Each such change shall apply to Policies issued or renewed after the effective date of such change. Notwithstanding the foregoing, if the Company writes business of the type that it has historically not written or writes more than 25% of its gross written premiums outside the state of New York in any 12 month period ending on the anniversary date of this Agreement, then the Reinsurer has the right to refuse to reinsure such business that the Company has not historically written and such excess business written outside the State of New York. B. The Reinsurer’s liability as respect Losses shall be subject to the following limits: Property: $1,000,000 Per Risk $10,000,000 Per Occurrence Liability: $1,000,000 Per Claim Terrorism Sub-Limit: $10,000,000 Per Occurrence property and liability combined

REINSURANCE COVERAGE. A. Upon the contribution of capital to the Reinsurer by its parent in the amount of at least $156 million, the Company shall automatically and obligatorily cede to the Reinsurer, and the Reinsurer shall be obligated to accept as assumed reinsurance, a 30% quota share portion of the Net Liabilities with respect to such Policies, subject to adjustment as set forth below. The Company may, in its sole discretion, change the quota share participation of the Reinsurer Reinsurer, from time to time time, as of any six month anniversary date of the effective date of this Agreement upon not less than ninety (90) days prior written notice to the Reinsurer; provided, however that the quota share participation of the Reinsurer shall at all times during the term of this Agreement be a minimum of 25% and a maximum of 45%; , and provided further that the Reinsurer’s quota share participation of the Reinsurer does not exceed $50 150 million of gross written premium for the 12 month period ended March 31, 2007, with such maximum amount subject to a 25% growth factor per 12 month period year thereafter. If the Reinsurer’s quota share participation maximum of $50 150 million (subject to the growth factor) is attained in any twelve month period ended March 31, then the quota share participation percentage, which shall apply to all premiums and losses on a pro-rated basis for such period, shall be decreased for that 12 month period even if such participation is below 25%. Each such change shall apply to Policies issued or renewed after the effective date of such change. Notwithstanding the foregoing, if the Company writes business of the type that it has historically not written or writes more than 25% of its gross written premiums outside the state of New York in any 12 month period ending on the anniversary date of this Agreement, then the Reinsurer has the right to refuse to reinsure such business that the Company has not historically written and such excess business written outside the State of New York. B. The Reinsurer’s liability as respect Losses shall be subject to the following limits: Property: $1,000,000 Per Risk $10,000,000 Per Occurrence Liability: $1,000,000 Per Claim Terrorism Sub-Limit: $10,000,000 Per Occurrence property and liability combined

REINSURANCE COVERAGE. A. Upon The Company's individual life insurance and annuities issued on the contribution policy forms specified in Exhibit I shall be reinsured automatically with the Reinsurer, provided it meets the following requirements: 1. Policy issued according to the Company's then existing regular new risk underwriting rules. 2. Mortality ratings from Standard to Table 16 (P), inclusive. 3. Issue age 80 or below for life insurance and issue age 85 or below for annuities. 4. Resident of capital the United States or Canada. 5. Risk has not been submitted to the Reinsurer by its parent for facultative reinsurance. 6. Company retains the coinsurance percentage specified in Exhibit II. 7. The face amount of life insurance then applied for in all companies, including the Company on the life, when added to the face amount then in force in all companies including the Company on that life, shall not exceed $2,500,000. For accidental death benefits, the amount shall not exceed $300,000. 8. The maximum amount to be reinsured automatically on any one life shall not exceed $500,000 for life insurance and $1,000,000 for annuities. B. If the insurance does not meet the automatic requirements specified in paragraph A, the Company may submit an application for facultative reinsurance. An application for facultative reinsurance shall be made by submitting to the Reinsurer a "Preliminary Application for Reinsurance", Exhibit III, together with copies of at least all papers pertaining to the insurability of the risk. The Reinsurer shall have the option of accepting or rejecting or rating any application for facultative reinsurance. The Reinsurer shall promptly notify the Company of its underwriting action after the Reinsurer has examined the evidence of insurability submitted. If the amounts of life insurance issued and applied for in all companies is less than $156 million1,500,000, the Company shall automatically and obligatorily cede submit the information required in the preceding paragraph to Republic-Vanguard Life Insurance Company as the designated lead underwriter for the Reinsurer, and Republic-Vanguard Life's underwriting decision shall be binding on the Reinsurer. If the amount of life insurance issued and applied for in all companies is $1,500,000 or more, the Company shall submit the information required in the second preceding paragraph to each reinsurer with an Interests and Liabilities Agreement to this Agreement, and each reinsurer shall promptly notify the Company of its underwriting action. C. The liability of the Reinsurer shall be obligated to accept as assumed reinsurance, a 30% quota share portion of the Net Liabilities with respect to such Policies, subject to adjustment as set forth below. The Company may, in its sole discretion, change the quota share participation of the Reinsurer from time to time as of any six month anniversary date of begin on the effective date of the Company's liability on each policy reinsured hereunder. However, the Reinsurer's liability for facultative reinsurance on a risk shall not commence before the Reinsurer has accepted the application for reinsurance. In no event shall the reinsurance be in force and binding unless the issuance and delivery of such insurance constituted the doing of business in the United States of America in a jurisdiction in which the Company was properly licensed. D. Reinsurance shall be coinsurance and shall follow the policy forms and rates of the Company. The Company has furnished the Reinsurer with copies of its policy forms, applications, rates and values and shall submit to the Reinsurer policy modifications or new policy forms before reinsurance shall become effective hereunder. E. The Reinsurer's share of a policy reinsured hereunder shall remain unchanged so long as the policy issued by the Company remains in force, except as provided in ARTICLE VIII - REDUCTIONS, TERMINATIONS AND CHANGES. F. Receipt by the Reinsurer of the initial reinsurance premium and of each subsequent reinsurance premium, in accordance with the provisions of ARTICLE IV - REPORTS AND REMITTANCES of this Agreement upon not less than ninety (90) days prior written notice shall be a condition to the Reinsurer; provided, however that 's continuing liability for reinsurance of each policy reinsured. G. The Company shall inform the quota share participation Reinsurer of any reinsurance by means of the Reinsurer shall at all times during the term of this Agreement be a minimum of 25% and a maximum of 45%; and provided further that the Reinsurer’s quota share participation does not exceed $50 million of gross written premium for the 12 month period ended March 31, 2007, with such maximum amount subject to a 25% growth factor per 12 month period thereafter. If the Reinsurer’s quota share participation maximum of $50 million (subject to growth factor) is attained monthly accounting report as described in any twelve month period ended March 31, then the quota share participation percentage, which shall apply to all premiums and losses on a proARTICLE IV -rated basis for such period, shall be decreased for that 12 month period even if such participation is below 25%. Each such change shall apply to Policies issued or renewed after the effective date of such change. Notwithstanding the foregoing, if the Company writes business of the type that it has historically not written or writes more than 25% of its gross written premiums outside the state of New York in any 12 month period ending on the anniversary date of this Agreement, then the Reinsurer has the right to refuse to reinsure such business that the Company has not historically written and such excess business written outside the State of New York. B. The Reinsurer’s liability as respect Losses shall be subject to the following limits: Property: $1,000,000 Per Risk $10,000,000 Per Occurrence Liability: $1,000,000 Per Claim Terrorism Sub-Limit: $10,000,000 Per Occurrence property and liability combined

REINSURANCE COVERAGE. A. Upon the contribution of capital to the Reinsurer by its parent in the amount of at least $156 million, the Company shall automatically and obligatorily cede to the Reinsurer, and the Reinsurer shall be obligated to accept as assumed reinsurance, a 30% quota share portion of the Net Liabilities with respect to such Policies, subject to adjustment as set forth below. The Company may, in its sole discretion, change the quota share participation of the Reinsurer Reinsurer, from time to time time, as of any six month anniversary date of the effective date of this Agreement upon not less than ninety (90) days prior written notice to the Reinsurer; provided, however that the quota share participation of the Reinsurer shall at all times during the term of this Agreement be a minimum of 25% and a maximum of 45%; , and provided further that the Reinsurer’s quota share participation of the Reinsurer does not exceed $50 150 million of gross written premium for the 12 month period ended March 31, 2007, with such maximum amount subject to a 25% growth factor per 12 month period year thereafter. If the Reinsurer’s quota share participation maximum of $50 150 million (subject to the growth factor) is attained in any twelve month period ended March 31, then the quota share participation percentage, which shall apply to all premiums and losses on a pro-rated basis for such period, shall be decreased for that 12 month period even if such participation is below 25%. Each such change shall apply to Policies issued or renewed after the effective date of such change. Notwithstanding the foregoing, if the Company writes business of the type that it has historically not written or writes more than 25% of its gross written premiums outside the state of New York in any 12 month period ending on the anniversary date of this Agreement, then the Reinsurer has the right to refuse to reinsure such business that the Company has not historically written and such excess business written outside the State of New York. B. The Reinsurer’s liability as respect Losses shall be subject to the following limits: Property: $1,000,000 Per Risk $10,000,000 Per Occurrence Liability: $1,000,000 Per Claim Terrorism Sub-Limit: $10,000,000 Per Occurrence property and liability combined: