Funds Withheld. Subject to the terms hereof, the Ceding Company shall retain, as fiduciary of the Reinsurer, the Reinsurance Settlements due hereunder on a funds withheld basis. The amount of such Reinsurance Settlements so retained shall be called “Funds Withheld”. In consideration of the Reinsurer agreeing to allow the Ceding Company to retain the Reinsurance Settlements on funds withheld basis, the Ceding Company agrees that the Funds Withheld Balance (as defined in Section 5.02) may be offset by the Reinsurer against liabilities of the Reinsurer for payments under this Agreement. The Funds Withheld Balance shall be maintained by the Ceding Company in a segregated asset portfolio.
Appears in 2 contracts
Sources: Reinsurance Agreement, Reinsurance Agreement (WRL Series Annuity Account)