Common use of CONVERSIONS, EXCHANGES AND REPLACEMENTS Clause in Contracts

CONVERSIONS, EXCHANGES AND REPLACEMENTS. You will promptly notify us if a reinsured policy is converted, exchanged, or internally replaced. If the conversion, exchange, or replacement is not considered to be new business, as defined below, we will continue to reinsure the new policy (hereinafter referred to as a “continuation”) in an amount determined on the same basis as, but not to exceed, the amount reinsured on the original policy as of the date of conversion, exchange, or replacement, unless mutually agreed otherwise. If we reinsure the plan to which the original policy is converting, either under this Agreement or under a different agreement, reinsurance premium rates for the continuation will be those contained in the agreement that covers the plan to which the original policy is converting. However, if we do not reinsure the new plan, reinsurance will be on a YRT basis using rates to be mutually agreed upon between the parties. Reinsurance premiums and any expense allowances for continuations will be based on the issue date of the original policy and the original issue age of the insured, i.e. on a point-in-scale basis. A conversion, exchange, or replacement will be considered to be new business provided all of the following criteria are met: 6.1 The new policy is underwritten in accordance with your normal new business guidelines and procedures; 6.2 A full first-year commission is paid on the new policy; and 6.3 The new policy provides for the maximum normal periods of suicide and contestability protection permitted in the state in which the new policy is issued. Unless mutually agreed otherwise, any policies that had been reinsured with another reinsurer and which convert to a plan covered under this Agreement will not be reinsured with us.

CONVERSIONS, EXCHANGES AND REPLACEMENTS. You will promptly notify us if a reinsured policy is converted, exchanged, or internally replaced. If the conversion, exchange, or replacement is not considered to be new business, as defined below, we will continue to reinsure the new policy (hereinafter thereinafter referred to as a “continuation”"continuation-) in an amount determined on the same basis as, but not to exceed, the amount reinsured on the original policy as of the date of conversion, exchange, or replacement, unless mutually agreed otherwise. If we reinsure the plan to which the original policy is converting, either under this Agreement or under a different agreement, reinsurance premium rates for the continuation will be those contained in the agreement that covers the plan to which the original policy is converting. However, if we do not reinsure the new plan, reinsurance will be on a YRT basis using the YRT conversion rates to be mutually agreed upon between the partiesshown in Exhibit C.XII, Conversion Rates. Reinsurance premiums and any expense allowances for continuations will be based on the issue date of the original policy and the original issue age of the insured, i.e. on a point-in-scale basis. A conversion, exchange, or replacement will be considered to be new business provided all of the following criteria are met: 6.1 The new policy is underwritten in accordance with your normal new business guidelines and procedures; 6.2 A full first-year commission is paid on the new policy; and 6.3 The new policy provides for the maximum normal periods of suicide and contestability protection permitted in the state in which the new policy is issued. Unless mutually agreed otherwise, . any policies that had been reinsured with another reinsurer and which convert to a plan covered under this Agreement will not be reinsured with us.