RETENTION LIMIT INCREASES Sample Clauses
The 'Retention Limit Increases' clause defines the conditions under which the amount of risk or loss that the insured party must bear before insurance coverage applies will be raised. Typically, this clause outlines specific events, timeframes, or circumstances—such as policy renewals, changes in risk profile, or regulatory requirements—that trigger an increase in the retention limit. By specifying when and how the retention limit may be adjusted, this clause ensures both parties are aware of potential changes in financial responsibility, thereby helping to manage expectations and allocate risk appropriately.
RETENTION LIMIT INCREASES. If you change your retention limits as shown in Exhibit ▇.▇▇, you will provide us with written notice of the new retention limits and the effective date. A change in your retention limits will not affect the reinsured policies in force at the time of the change except as specifically provided elsewhere in this Agreement. Furthermore, such a change will not affect the Automatic Acceptance Limits shown in Exhibit A.VII, unless agreed between the patties.
RETENTION LIMIT INCREASES. (Recapture)
1. If the Company increases its limit of retention, a corresponding reduction may be made at the option of the Company in the reinsurance in force on all lives on which the Company had its maximum limit of retention at the time reinsurance was ceded. However:
(a) No risk shall be recaptured prior to the policy anniversary (earliest recapture date) specified in Exhibit B.
(b) Risks wholly reinsured because the Company's normal schedule of retention provides for zero retention at the particular age and rating assigned to the risk shall not be considered eligible for recapture.
(c) Retention increases for a five year period immediately following a merger with another insurance company shall be recognized for recapture purposes to a maximum 50% increase over the pre-merger retention of the Company.
(d) No recapture will be allowed for any classes of risks for which the Company established special retention limits less than the Company's maximum retention limits at the time the policy was issued.
2. Recapture shall be effected as follows:
(a) After the retention increase is effected, the Company shall promptly notify Swiss Re America of its intention to recapture.
(b) Eligible policies shall be recaptured on the first renewal date following the notice of intention to recapture.
(c) All eligible policies shall be recaptured unless there is mutual agreement to the contrary expressed in writing.
(d) If the Company has reinsured any portion of the risk in another company, the reduction in reinsurance ceded under this Agreement shall be in the same proportion to the total reduction in reinsurance as the amount reinsured under the Agreement bears to the total reinsurance on the risk.
(e) In determining the new retention for a particular policy, the age and rating at issue should be used. SWISS RE AMERICA
(f) If at the time of recapture the risk is on active claim for Waiver of Premium Disability, the Life risk shall still be considered eligible for recapture. However, the Disability reinsurance shall remain in force until such time as the policy is returned to a premium paying status. The Disability risk shall be recaptured upon such return to premium paying status. If within two years of said recapture the Waiver of Premium claim is resumed due to an extension of the initial disablement, Swiss Re America shall again be liable for payment of its share of premiums waived by the Company, subject to collection of Disability premiums on Swiss Re America's sha...