Common use of Right of Recapture or Trust Clause in Contracts

Right of Recapture or Trust. At any time after the occurrence (or nonoccurrence, as the case may be) of any of the following, the Company shall have the right, upon delivery of written notice to the Reinsurer, to (i) recapture any and all of the Policies in a manner provided for in Section 9.02, or (ii) require that the Reinsurer establish a trust in a manner provided for in Section 9.03: (a) if the Reinsurer materially breaches any material provision of this Agreement or the Administrative Services Agreement, which breach is not cured within 60 days after receipt by the Reinsurer of notice thereof from the Company; (b) if the Reinsurer files an RBC Report that indicates that its Total Adjusted Capital is less than 2.5 times its Authorized Control Level RBC, as each such term is defined in the Connecticut Insurance Code in effect on the Effective Time; or (c) if the Reinsurer or its direct parent company is placed in receivership, conservatorship, rehabilitation, or liquidation by any insurance regulatory authority or becomes (whether voluntarily or involuntarily) the subject of a proceeding under any local, state, or federal bankruptcy or insolvency Law.