Common use of Exchanges and Replacements Clause in Contracts

Exchanges and Replacements. A policy resulting from an exchange or replacement will be underwritten by the Company in accordance with its underwriting guidelines, standards and procedures for exchanges and replacements. If the Company’s guidelines treat the policy as new business, then the reinsurance will also be considered new business. For purposes of this Article, new business is defined as those policies on which: a. The Company has obtained complete and current underwriting evidence on the full amount; and b. The full normal commissions are paid for the new plan; and c. The Suicide and Contestable provisions apply as if the policy were newly issued, unless prohibited by law. If the Company has not obtained complete and current underwriting evidence or if the other new business provisions do not apply, the Company and the Reinsurer must specifically agree on terms and procedures for the reinsurance coverage to continue; otherwise, reinsurance coverage will terminate. The Reinsurer’s approval will be required if the original policy was reinsured on a facultative basis.

Exchanges and Replacements. A policy Policy resulting from an exchange or replacement will be underwritten by the Company in accordance with its underwriting guidelines, standards and procedures for exchanges and replacements. If the Company’s guidelines treat the policy Policy as new business, then the reinsurance will also be considered new business. For purposes of this ArticleArticle 10, new business is defined as those policies Policies on which: a. The the Company has obtained complete and current underwriting evidence on the full amountamount of insurance being exchanged or replaced; and b. The full normal commissions are paid for the new plan; and c. The Suicide suicide and Contestable contestable provisions apply as if the policy Policy were newly issued, unless prohibited by law. If the Company has not obtained complete and current underwriting evidence or if the other new business provisions do not apply, the Company and the Reinsurer must specifically agree on terms and procedures for the reinsurance coverage to continue; otherwise, reinsurance coverage will terminate. The Reinsurer’s written approval will be required if the original policy Reinsured Policy was reinsured on a facultative basis.

Exchanges and Replacements. A policy resulting from an exchange or replacement will be underwritten by the Company in accordance with its underwriting guidelines, standards and procedures for exchanges and replacements. If the Company’s guidelines treat the policy as new business, then the reinsurance will also be considered new business. For purposes of this Article, new business is defined as those policies on which: a. The Company has obtained complete and current underwriting evidence on the full amount; and b. The full normal commissions are paid for the new plan; and c. The Suicide and Contestable provisions apply as if the policy were newly issued, unless prohibited by law. If the Company has not obtained complete and current underwriting evidence or if the other new business provisions do not apply, the Company and the Reinsurer must specifically agree on terms and procedures for the reinsurance coverage to continue; otherwise, reinsurance coverage will terminate. The Reinsurer’s approval will be required if the original policy was reinsured on a facultative basis.