Common use of Basis of Recapture Clause in Contracts

Basis of Recapture. Recapture will be allowed under this Agreement only in the following circumstances: a) You elect to increase the premium rates shown in Exhibit C, as discussed in Article V (Reinsurance Rates and Payments); or b) We elect to recapture all business reinsured under this Agreement; or c) We increase our quota share percentage shown in Exhibit A. Policies will be eligible for recapture under paragraphs b) and c) above when the policy has been in force under this Agreement for the Recapture Period shown in Exhibit C, Section IX (Recapture Period). The recapture period will always be measured from the original policy issue date for new business issued October 1, 1998 and after, and from October 1, 1998 for all policies issued prior to that date. Policies will be eligible for recapture under paragraph a) above as of the effective date of the rate increase, regardless of issue date. The recapture will be without penalty.