Common use of AUTOMATIC REINSURANCE TERMS Clause in Contracts

AUTOMATIC REINSURANCE TERMS. The Ceding Company agrees to cede and the Reinsurer agrees to automatically accept contractual risks on Covered Policies and Benefits set forth in Section 2 of Schedule A, subject to the conditions listed below. • The total amount of reinsurance ceded on a life by the ceding company to the Reinsurer is not in excess of the automatic binding limit shown in Section 4 of Schedule A. • The amount of life insurance in force plus the amount currently being applied for on that life in all companies does not exceed the jumbo limit set forth in Section 5 of Schedule A. • The substandard mortality rating does not exceed 500% or its equivalent on an extra premium basis. • The life insurance was issued in accordance with the ceding company’s normal underwriting rules and practices. If a risk cannot be ceded automatically under the terms of this agreement the ceding company may submit the risk to the Reinsurer on a facultative basis.