Common use of Basis of Recapture Clause in Contracts

Basis of Recapture. Recapture is not available until the end of the tenth (10th) policy year for single life and twentieth (20th) for last-to-die and then must be in conjunction with an increase in the Ceding Company's maximum schedule of retention as shown in Exhibit A, II. The amount eligible for recapture will be the difference on the same quota share basis had the new retention schedule been in effect at the time of issue. If you increase the retention limits shown in Exhibit A, you may make a corresponding reduction in eligible reinsurance cessions. Policies are eligible for recapture if: a) You have maintained the stated retention limit shown in Exhibit A. Policies on which you retained less than your retention limit will not be eligible for recapture. b) The policy has been in force under this Agreement for the Recapture Period shown in Exhibit B. The recapture period will always be measured from the original policy issue date. For converted policies the recapture period will be measured from the issue date of the original policy.