SPECIAL TERMINATION OR SETTLEMENT. It is hereby mutually agreed that in addition to the termination provisions hereof, the following shall apply:
Section I - Termination:
A. Either party may terminate this Agreement upon forty-five (45) days notice in the event that:
1. The other party should at any time (whether voluntarily or otherwise) become insolvent, or suffer a substantial impairment of capital, or become the subject of any liquidation, rehabilitation, receivership, supervision, conservation, or bankruptcy action or proceeding (whether judicial or otherwise) or of a proposed Scheme of Arrangement, or be acquired or controlled (whether directly or indirectly) by any other company or organization, or
2. There is a severance of free and unfettered communication and/or normal commercial and/or financial intercourse between the United States of America and the country in which the REINSURER is incorporated or has its principal office as a result of war, currency regulations, or any circumstances arising out of political, financial or economic emergency.
3. Any law or regulation of any Federal or State of any jurisdiction in which the CEDING COMPANY is doing business should render illegal the arrangements made herein.
B. In the event that the REINSURER's Standard & Poor's and/or AM Best rating drops below a Standard & Poor's [redacted], the CEDING COMPANY may request, and the REINSURER shall provide, as described in Article VIII, [redacted] Termination under A or B shall be effected by written notice of cancellation. The CEDING COMPANY will specify whether the termination results in a recapture of all ceded business (i.e. clean-cut) or termination of new business only (i.e. run-off). If the CEDING COMPANY elects termination for new business only (run-off), it may request, [redacted]
Section II - Settlement The mode of payment will be [redacted]
Section III - Payment Settlement upon termination (clean-cut) of this Agreement shall be determined in accordance with the Loss Carryforward (LCF) formula found in Article IX, Recapture Privileges.
SPECIAL TERMINATION OR SETTLEMENT. (Continued) [redacted] This article shall survive the termination of this Agreement.
SPECIAL TERMINATION OR SETTLEMENT. A. Within one hundred and twenty (120) days of the occurrence of any of the following events (the "Triggering Event"), either party may terminate this Agreement for new business upon fifteen (15) days' notice:
(i) the other party should at any time (whether voluntarily or otherwise) become insolvent, or become the subject of any liquidation, rehabilitation, receivership, supervision, conservation, or bankruptcy action or proceeding (whether judicial or otherwise) or of a proposed scheme of arrangement; or
(ii) Total Adjusted Capital dropping below 2.5 times Authorized Control Level RBC (as defined in the NAIC Risk Based Capital for Insurers Model Act),
B. Termination under part A of this section shall be effected by written notice. In such notice, the Company will elect whether the termination shall be on a "Run-Off" basis or a "Clean-Cut" basis.
(i) If the Company elects Run-Off, the Agreement will continue in force but the period that premiums will be paid will shift to monthly (i.e., 1/12 of an annual premium will be due each month for all reinsured policies) and will be paid "in arrears" (i.e., the premiums due for month 1 will be paid in month 2).
(ii) If the Company elects Clean-Cut, a "Recapture Fee" will be calculated by the Reinsurer and paid by the Company as of the effective date of Recapture. The notice shall specify the proposed date of recapture which shall be no later than one hundred twenty (120) days from Triggering Event (inclusive of day upon which the Triggering Event occurs).
(a) The Company will pay a "Recapture Fee" calculated for each recaptured policy as follows: (2nd YP/LT) x (LT - EPY) 2nd YP = 2nd year premium LT = Level Term Period EPY = number of policy years elapsed, up to a maximum of 30
(b) The payment of the Recapture Fee shall act as a full and final commutation and mutual release of all respective rights, obligations and liabilities under this Agreement. The Reinsurer will remain liable in respect of the affected cessions Up to the effective date of Recapture but will not be liable thereafter.
(c) In the event of any conflict between this Article and any other Article of this Agreement, the terms of this Article will control.
SPECIAL TERMINATION OR SETTLEMENT. SECTION I ( TERMINATION) A. Either party may terminate this Agreement immediately in the event that: 1. The other party should at any time become insolvent, or suffer any impairment of contributed capital, or file a petition in bankruptcy, or go into liquidation, rehabilitation, or voluntary supervision, or have a receiver appointed, or be acquired or controlled by any other insurance company or organization, or
SPECIAL TERMINATION OR SETTLEMENT. 1. In addition to the provisions of Article XXII, either party may terminate this Agreement immediately upon written notice to the other party in the event that:
a) One party should at any time become insolvent, suffer any impairment of capital, or file a petition in bankruptcy, or go into liquidation or rehabilitation, or have a receiver appointed, or be acquired or controlled by any unrelated insurance company or organization, or
b) Any law or regulation of any Federal, State or Local Government of any jurisdiction in which the Company is doing business should render illegal the arrangements made under this Agreement.
2. Either party may terminate this Agreement immediately upon written notice to the other party in the event that, upon calculation of the Risk Based Capital Formula prescribed by the National Association of Insurance Commissioners and applied to either party's annual statement (which shall be furnished upon request), it is found that either party's total adjusted capital is equal to or less than the other party's Risk Based Capital (defined as the Company Action Level). Payment
SPECIAL TERMINATION OR SETTLEMENT. SECTION I ( TERMINATION) A. Either party may terminate this Agreement immediately in the event that: 3. The other party should at any time become insolvent, or suffer any impairment of contributed capital, or file a petition in bankruptcy, or go into liquidation, rehabilitation, or voluntary supervision, or have a receiver appointed, or be acquired or controlled by any other insurance company or organization, or 4. There is a severance of obstruction of free and unfettered communication and/or normal commercial and/or financial intercourse between the United States of America and the country in which the Reinsurer is incorporated or has its principal office as a result of war, currency regulations, or any circumstances arising out of political, financial or economic emergency.
SPECIAL TERMINATION OR SETTLEMENT. Either party may terminate this Agreement upon 45 days notice in the event that:
SPECIAL TERMINATION OR SETTLEMENT. 26 Article XXII Execution of Agreement....................................... 28 AIG Agreement No. 2000-35-DB Effective January 31, 2001 Schedules and Exhibits Schedule A Plans of Reinsurance Schedule B Investment Funds Schedule C Required Data and Suggested Data Layout Exhibit I 1994 Variable Annuity MGDB Mortality Table Exhibit II Reinsurance Premiums Exhibit III Benefit Limitation Rules Exhibit IV Confidentiality and Non-Disclosure Agreement AIG Agreement No. 2000-35-DB Effective January 31, 2001 PREAMBLE This Agreement is an indemnity reinsurance agreement solely between the CEDING COMPANY and the REINSURER. The acceptance of reinsurance hereunder shall not create any right or legal relation whatever between the REINSURER and the annuitant, owner, beneficiary or any other party under any policies of the CEDING COMPANY which may be reinsured hereunder. The CEDING COMPANY shall be and remain solely liable to such parties under such policies reinsured hereunder.
SPECIAL TERMINATION OR SETTLEMENT. SECTION I ( TERMINATION)
A. Either party may terminate this Agreement upon 45 days notice in the event that: 1. The other party should at any time become insolvent, or suffer any impairment of capital, or file a petition in bankruptcy, or go into liquidation, rehabilitation, or voluntary supervision, or have a receiver appointed, or be acquired or controlled by any other insurance Retrocedent or organization, or 2. There is a severance or obstruction of free and unfettered communication and/or normal commercial and/or financial intercourse between the United States of America and the country in which the Retrocessionaire is incorporated or has its principal office as a result of war, currency regulations, or any circumstances arising out of political, financial or economic emergency.
B. The Retrocedent may terminate this Agreement forthwith in the event that:
SPECIAL TERMINATION OR SETTLEMENT. ARTICLE (Applicable separately as between the company and each participating reinsurer)
