Common use of Contractual Increases Clause in Contracts

Contractual Increases. For policies reinsured on an automatic basis, reinsurance of increases in amount resulting from contractual policy provisions will be accepted only up to the Automatic Binding Limits shown in Exhibit A. For policies with increasing net amount at risk, the Reinsurer's additional liability will be no more than its share of one times the initial net amount at risk. In no event will the Reinsurer's liability exceed the automatic binding limit. For policies reinsured on a facultative basis, reinsurance will be limited to the ultimate Amount shown in the Reinsurer's facultative offer. Reinsurance premiums for Contractual increases will be on a point-in-scale basis from the original issue age of Policy.