Common use of Deficiency Reserves Clause in Contracts

Deficiency Reserves. If YRT [No Deficiency Reserves will be held by the Reinsurer for the Reinsured policies.] If Coinsurance [The Reinsurer anticipates that it will use the Company's X Factors in calculating deficiency reserves. Such X factors and supporting actuarial certification and memorandum will be made available to the Reinsurer. The Company will promptly communicate any change in its mortality reserve assumptions to the Reinsurer. If the Company makes any change to its reserving methodology that results in differences in the level of reserves it must hold on statutory basis, then the Reinsurer reserves the the right to make changes to the reinsurance allowances under this Agreement. Should the Reinsurer calculate its own X Factors for the purpose of determining reserves on the Reinsured Policies and hold reserves based on such calculations, the rates and allowances under this Agreement will be unaffected.]