RETENTION AND RECAPTURE Clause Samples
The RETENTION AND RECAPTURE clause defines the insurer's right to retain a certain portion of risk on a policy and the conditions under which previously ceded risk can be recaptured. In practice, this means the insurer may initially transfer part of the risk to a reinsurer but can later reclaim some or all of that risk if specific criteria are met, such as improved policyholder health or changes in retention limits. This clause ensures flexibility in risk management, allowing the insurer to optimize its risk portfolio and potentially reduce reinsurance costs over time.
RETENTION AND RECAPTURE. If the Ceding Company changes its limit of retention as shown in Schedule II, written notice of the change will promptly be given to the Reinsurer. At the option of the Ceding Company, a corresponding reduction may be made in the reinsurance in force under this Agreement, on all lives, on which the Ceding Company has maintained its maximum limit of retention, provided that all eligible business is reduced on the same basis. The Ceding Company may apply the new limits of retention to existing reinsurance and reduce and recapture reinsurance inforce in accordance with the following rules:
1. No recapture will be made unless reinsurance has been in force for the minimum period shown in Schedule I.
2. Recapture will become effective on the policy anniversary date following written notification of the Ceding Company's intent to recapture.
3. No recapture will be made unless the Ceding Company retained its maximum limit of retention for the plan, age and mortality rating at the time the policy was issued. No recapture will be allowed in any class of fully reinsured business or in any classes of risks for which the Ceding Company established special retention limits less than the Ceding Company's maximum retention limits for the plan, age, and mortality rating at the time the policy was issued.
4. If any reinsurance is recaptured, all reinsurance eligible for recapture, under the provisions of this Article, must be recaptured.
5. If there is reinsurance with other reinsurers on risks eligible for recapture, the necessary reduction is to be applied to each company in proportion to the total outstanding reinsurance.
RETENTION AND RECAPTURE. If the Ceding Company changes its limit of retention as shown in Schedule I, written notice of the change will promptly be given to the Reinsurer. At the option of the Ceding Company, a corresponding reduction may be made in the reinsurance in force under this Agreement, on all lives, on which the Ceding Company has maintained its maximum limit of retention, provided that all eligible business is reduced on the same basis. The Ceding Company may apply the new limits of retention to existing reinsurance and reduce and recapture reinsurance inforce in accordance with the following rules:
1. The policy has been reinsured under this Agreement and in force for the minimum period shown in Schedule I.
2. Recapture will become effective on the policy anniversary date following written notification of the Ceding Company's intent to recapture.
3. The Ceding Company retained its maximum limit of retention for the plan, age and mortality rating at the time the policy was issued under this Agreement and in accordance with Schedule I.
4. All reinsurance eligible for recapture, under the provisions of this Article, must be recaptured.
5. If there is reinsurance with other reinsurers on risks eligible for recapture, the necessary reduction is to be applied to each company in proportion to the total outstanding reinsurance. Special recapture on facultative business may be allowed under mutually agreed upon terms and conditions.
RETENTION AND RECAPTURE. Section 9.1 Retention 14 Section 9.2 Recapture; Termination 14 Section 9.3 Triggering Event 15 Section 9.4 Effect of Termination and Recapture 15 Section 10.1 Commencement of Liability 15
RETENTION AND RECAPTURE. The Company shall have the right to increase or decrease the Retention Limit under this Contract by providing 30 days prior written notice. Such increase shall only apply to new policies issued on or after the effective date of such increase or decrease.
RETENTION AND RECAPTURE. First Allmerica Financial shall have the right to increase or decrease the Retention Limit under this Agreement by providing thirty (30) days written notice to Northwestern National. Such increase or decrease shall be applicable only to new Policies issued on and after the effective date of such increase or decrease.
RETENTION AND RECAPTURE. If Principal Life increases its Retention on new Policies, it agrees to notify XYZ RE in writing within sixty (60) days of such increase. The notice shall specify the new Retention and the effective date thereof.
RETENTION AND RECAPTURE. First Allmerica Financial shall have the right to increase or decrease the Retention Unit under this Agreement by providing thirty (30) days written notice to Connecticut General. Such increase or decrease shall be applicable only to new Policies issued on or after the effective date of such increase or decrease.