Common use of Contractual and Regulatory Increases Clause in Contracts

Contractual and Regulatory Increases. Reinsurance of increases in amount resulting from contractual policy provisions will be based on the issue age, mortality rating, underwriting class and duration from issue of the Original Policy. The Ceding Company and the Reinsurer will share the increased amount proportionately. If the reinsurance is Automatic, the amount of reinsurance must not exceed the Automatic Binding or Jumbo Limits shown in Exhibit C. If the reinsurance is Facultative, the amount of reinsurance must not exceed the Ultimate Amount included in the Facultative offer. Any change in the Policy Net Amount at Risk due to changes in the policy's cash value or account value will be shared proportionately between the Ceding Company and all reinsurers.

Contractual and Regulatory Increases. Reinsurance of increases in amount resulting from contractual policy provisions will be based on the issue age, mortality rating, underwriting class and duration from issue of the Original Policy. The Ceding Company and the Reinsurer will share the increased amount proportionately. If the reinsurance is Automatic, the amount of reinsurance must not exceed the Automatic Binding or Jumbo Limits shown in Exhibit C. If the reinsurance is Facultative, the amount of reinsurance must not exceed the Ultimate Amount included in the Facultative offer. Any change in the Policy Net Amount at Risk due to changes in the policy's ’s cash value or account value will be shared proportionately between the Ceding Company and all reinsurers.