Common use of Experience Refund Clause in Contracts

Experience Refund. If the Experience Refund is positive, this amount shall be paid to the Company by the Reinsurer. If the Experience Refund is negative, the absolute value of this amount shall be paid to the Reinsurer by the Company. Beginning with the second accounting period that the Coinsurance Reserve is equal to zero, if the Experience Refund is positive, then the Experience Refund will be reduced by 10%. The Experience Refund is calculated as follows: Premiums, in accordance with Schedule C, PLUS: Experience Refund Investment Income in accordance with Schedule E, MINUS: Benefits paid during the accounting period in accordance with Article VI, MINUS: Expense Allowance, in accordance with Schedule D, MINUS: Change in the Statutory Reserve in accordance with Schedule F, PLUS: Change in the Coinsurance Reserve in accordance with Schedule F, MINUS: Expense and Risk charge in accordance with Article VII, MINUS: Loss Carry Forward at the beginning of the current accounting period accumulated at the Modco Investment Income Interest Rate (as calculated in Schedule E) EQUALS: Experience Refund