TERM CONVERSIONS. On a term conversion in the first policy year, the term writer's first-year commissions are protected. The writer of the permanent policy will receive first-year commissions on the new policy less the FYC paid on the term policy, and will receive full renewal commissions. A term policy in its second or later policy year may be converted, and full commissions will be credited to the writer effecting the term conversion.
TERM CONVERSIONS. If a Term plan is exchanged for a universal life or whole life policy within the first ten years, full first year commissions will be paid on the premium actually paid by the policy owner up to the target premium reduced by the conversion allowance, if any. If the exchange occurs more than ten years after issue, all premiums for the new policy will be commissioned at the renewal rate.
TERM CONVERSIONS. For purposes of this Agreement, a term conversion is a contractual right of the insured to replace a term policy with a permanent plan without evidence of insurability. The Reinsurer will continue to reinsure policies resulting from a term conversion of any policy reinsured under this Agreement, in an amount not to exceed the original amount reinsured hereunder. If the policy converts to a plan reinsured with the Reinsurer under either this Agreement or another Agreement, the reinsurance rates for the converted policy will be the reinsurance rates contained in the Agreement that covers the plan to which the original policy is converting. If the policy converts to a plan not reinsured with the Reinsurer, the reinsurance will continue under this Agreement on a yearly renewable term basis using the YRT conversion rates set forth in Section 4 of Schedule B. Reinsurance rates for term conversions will be point in scale (based on the original issue age, duration, and original underwriting class since issuance of the original policy). The recapture period applicable to the original policy will govern the converted policy and duration will be measured from the effective date of the original policy. Reinsurer will not reimburse Ceding Company for any conversion credits Ceding Company supplies to the insured. If the term conversion results in an increase in risk amount, the increase will be underwritten by the Ceding Company as new business and will be eligible for reinsurance coverage under this Agreement as new business. When a conversion is fully underwritten, the resulting policy will be administered the same as the issuance of a new policy.
TERM CONVERSIONS. The Reinsurer will only support conversions from the 20-year Term Rider as shown in Exhibit 1 - Reinsurance Specifications, on the rates per Exhibit 5 - Reinsurance Premium Methodology And Rates. The amount to be reinsured will be determined on the same basis as used for the original rider (e.g. excess of retention, quota share) but will not exceed the amount reinsured immediately prior to the conversion date.
TERM CONVERSIONS. When a full or partial term conversion is made and the in-force term coverage is converted to whole life insurance, PC is granted and commissions are paid on the full amount of the new (converted) policy's premium. However, if ANY of the in-force term coverage is canceled, NO PC or commissions will be paid on the converted policy. Also, a conversion made during the first policy year is treated as follows:
TERM CONVERSIONS. If the policy is on a term plan reinsured under this reinsurance agreement with the Reinsurer and is converted, then the reinsurance shall continue on the YRT reinsurance rates as per Exhibit 8, Reinsurance Rates. The reinsurance premium and any allowance and any extra or benefit reinsurance premiums and allowances under Section 13, Reinsurance Premiums, shall be on a point-in-scale basis from the original issue age and on the duration in completed years of the term policy at the date of conversion. The amount to be reinsured will be determined on the same basis as used for the original policy (e.g. excess of retention, quota share) but will not exceed the amount reinsured as of the date of conversion unless mutually agreed otherwise. The Reinsurer does not support conversions to permanent plans under this Agreement where it is not the original reinsurer.
TERM CONVERSIONS. The first year commission at conversion shall be reduced by the first year commission paid on the term insurance if conversion occurs (1) within 120 days of issue of the term insurance and the new policy has a Policy Date at the insured's attained age, or (2) before the end of the second policy year of the term insurance and the new policy has a Policy Date at the insured's age at issue of the term insurance. If a term rider is continued after conversion, or if part of the term policy is continued as a term rider on the new policy, only a 5% commission on the rider premium will be paid in the first year after conversion; thereafter, compensation will be paid at the rate for the basic policy. For compensation purposes, Policy Years for policies issued as term conversions shall be measured from the date of conversion. All compensation after conversion is payable to the Agent credited with the conversion.
TERM CONVERSIONS. Subject to the terms and conditions hereof, Lender commits to convert (each a "Term Conversion"), provided that no Default or Event of Default exists, portions or all of the outstanding principal amount of the Convertible Revolving Loan into term loans (each a "Conversion Term Loan" and collectively the "Conversion Term Loans") to Borrower (the "Term Commitment"), in one or more conversions, from time to time during the period commencing on the Effective Date and ending at the close of Lender's business at the Applicable Lending Office on the Ultimate Convertible Revolving Maturity Date. No Term Conversion will be made which would result in the aggregate Conversion Term Loans exceeding the Term Commitment. No Term Conversion will be made after the Ultimate Convertible Revolving Maturity Date. Each Term Conversion will have a repayment period of from 12 to 20 quarters (the "Term Conversion Repayment Period"), as elected by Borrower in the applicable Term Conversion Request, but in any event each Term Conversion will be payable in full on the Ultimate Term Maturity Date. The obligation of Borrower to repay each Conversion Term Loan shall be evidenced by a promissory note in substantially the form attached hereto as Exhibit with respect to each such Conversion Term Loan payable to the order of Lender (each a "Term Note" and collectively, the "Term Notes"). Amounts applied to reduce any Conversion Term Loan may not be reborrowed. The Convertible Revolving Commitment shall be permanently reduced, on a dollar for dollar basis, by the amount of each Term Conversion.
TERM CONVERSIONS. On the date of any Term Conversion, Borrower shall pay to Lender any accrued interest which accrued prior to such Term Conversion on the amount so converted.
TERM CONVERSIONS. Borrower may request a Term Conversion by submitting a Term Conversion Request to Lender. Only a written request (which may be mailed, personally delivered or telecopied as provided in Section ) from a Borrowing Officer to Lender that specifies the amount of the Term Conversion to be made, the Term Conversion Repayment Period, and the date the Term Conversion is requested to be made (the "Term Conversion Date") shall be treated as a "Term Conversion Request". If at any time the Convertible Revolving Loan exceeds $7,500,000, Borrower shall be deemed to have made a Term Conversion Request in the amount of $7,500,000. Each Term Conversion shall be made in an amount of no less than $2,000,000 that is a whole multiple of $250,000. A Term Conversion Request received by Lender on a day that is not a Business Day or that is received by Lender after 2:00 p.m., St. Louis time, on a Business Day shall be treated as having been received by Lender at 2:00 p.m., St. Louis time, on the next Business Day. A Term Conversion Request shall become irrevocable at 2:00 p.m., St. Louis time, on the Term Conversion Date unless it is sooner revoked by a Borrowing Officer. Lender shall incur no liability to Borrower for treating any such request as a Term Conversion Request or for treating a revocation thereof as such if Lender believes in good faith that the Person making the request or revocation is a Borrowing Officer. Lender shall also incur no liability to Borrower for failing to treat any such request as a Term Conversion Request if Lender believes in good faith that the Person making the request is not a Borrowing Officer. Each Term Conversion Request by a Borrowing Officer shall constitute a certification by Borrower that (i) no Default has occurred that is continuing and not waived in writing by Lender and no Event of Default has occurred that is not waived in writing by Lender, (ii) all representations and warranties of Borrower in this Agreement are then true, and will be true on the Term Conversion Date, as if then made, and (iii) all conditions precedent hereunder to the making of the requested Term Conversion have been satisfied. There may not be more than one Term Conversion made pursuant to a Term Conversion Request on any one day. Provided that all conditions precedent herein to a requested Term Conversion have been satisfied, Lender will make the requested Term Conversion on the later to occur of (i) the date Lender receives a Term Note from Borrower to evidence t...
