TERMINATIONS AND REDUCTIONS. A. Termination or reductions will take place in accordance with the following rules, in order of priority: 1. Termination or reduction on a wholly reinsured policy will not affect other reinsurance in force. 2. A termination or reduction on a wholly retained case will not cause an equal reduction in existing automatic reinsurance. 3. When a reinsured policy is reduced, the reinsurance share will be equal to the percentage share immediately prior to the reduction. 4. If a policy is reinsured with multiple reinsurers, the reinsurance will be reduced by the ratio of the amount of reinsurance in each company to the total outstanding reinsurance on the risk involved. B. Whenever the total amount of reinsurance on a policy reduces to $[ ] or less the reinsurance will be wholly recaptured, if such policy has been inforce for at least three years.
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Samples: Automatic Reinsurance Agreement (Separate Account Fp of Equitable Life Assur Soc of the Us), Automatic Reinsurance Agreement (Separate Account Fp of Equitable Life Assur Soc of the Us), Automatic Reinsurance Agreement (Separate Account Fp of Equitable Life Assur Soc of the Us)
TERMINATIONS AND REDUCTIONS. A. Termination or reductions will take place in accordance with the following rules, in order of priority:
1. The CEDING COMPANY must keep its retention on the life.
2. Termination or reduction on of a wholly reinsured policy will not affect other reinsurance insurance in force.
23. A termination or reduction on a wholly retained case will not cause an equal reduction in existing automatic reinsurance.
3. When a reinsured policy is reduced, the reinsurance share will be equal to the percentage share immediately prior to the reduction.
4. If there is more than one automatically reinsured policy with the same issue date, then a policy is reduction will be made to partially reinsured case(s) first.
5. If the policies are reinsured with multiple reinsurers, the reinsurance will be reduced by the ratio of the amount of reinsurance in each company to the total outstanding reinsurance on the risk involved.
B. Whenever the total amount of reinsurance on a policy reduces to $[ ] or less the reinsurance will be wholly recaptured, if such policy has been inforce for at least three years.
Appears in 1 contract
Samples: Automatic Reinsurance Agreement (Vel Ii Account of Allmerica Financial Life Ins & Ann Co)
