Common use of Return of Premium for Misrepresentations and Suicides Clause in Contracts

Return of Premium for Misrepresentations and Suicides. 1. If a misrepresentation, misstatement, or omission on an application, or the death of an insured by suicide, results in the Ceding Company returning the policy premiums (or monthly deductions) to the policy owner rather than paying the death benefits under a risk reinsured under this Agreement, the Reinsurer shall refund to the Ceding Company all of the Reinsurance Premiums it received on that coverage without interest. This refund paid by the Reinsurer shall be in lieu of any and all other reinsurance benefits payable on that risk under this Agreement. 2. In addition, the Reinsurer shall pay its proportionate share of reasonable third-party investigation and legal expenses connected with the Ceding Company's decision to return the policy premiums (or monthly deductions) as described above in Paragraph F. 1. This paragraph shall not apply to expenses relating to rescissions of policies which are determined to be stranger-owned life insurance policies or investor-owned life insurance policies.