INCREASE IN RETENTION Clause Samples

INCREASE IN RETENTION. 1. The Reinsured may increase its limit of retention and may elect, subject to the provisions of this article, to continue the reinsurance in force under this Agreement without change, or to reduce all eligible reinsurance in force under this Agreement as set forth below. The increased limit of retention shall be effective with respect to reinsurance which is placed in effect on or after the effective date of the increase subsequent to the Reinsured providing written notice to the Reinsurer of such increase and of its election to either continue or reduce reinsurance on in force business. 2. No business will be eligible for reduction under this article unless the Reinsured kept its maximum retention as set forth in the retention schedule in effect at the time the insurance was issued. The amounts recaptured shall be sufficient to increase the Reinsured’s retention to the new limits. If there are other reinsurers, the reduction on each risk shall be divided according to each reinsurer’s portion of the total reinsurance on the risk. If the reinsurance is reduced on any risk, similar reductions shall be made on all risks eligible for recapture. The effective date of the reduction in reinsurance on a policy eligible for such reduction shall be the latter of the first policy anniversary following the notice to recapture and the th policy anniversary. 3. The retention limits of the Reinsured as of the effective date of this Agreement are shown in SCHEDULE G. [page break]

INCREASE IN RETENTION. The reduction in reinsurance shall first be applied to the reinsurance, if any, of the specific policy under which insurance terminated. The reinsurance of the Reinsurer shall be reduced by an amount which is in the same proportion of the amount of reduction so applied as the reinsurance of the Reinsurer bore to the total reinsurance of the policy. The balance, if any, of the reduction shall be applied to reinsurance of other policies on the life, the further reduction, if any, in the reinsurance of the Reinsurer again being determined on a proportional basis and shall be applied to policies in chronological order according to original policy dates.

INCREASE IN RETENTION. A. If the Ceding Company should increase the retention limits as listed in Exhibit II, prompt written notice of the increase must be given to the Reinsurer. B. In the event of an increase in retention, the Ceding Company will have the option of recapturing the reinsurance up to the increased retention under this Agreement. The Ceding Company may exercise its option to recapture by giving written notice to the Reinsurer within (90) ninety days after the effective date of the increase. C. Whenever the Ceding Company increases its maximum retention limits over the Ceding Company's Maximum Limits of Retention, as set forth in Exhibit II, the Ceding Company has the option to recapture certain risk amounts. If the Ceding Company has maintained Fac for Single Life Excess Pool Between HLAIC and Canada Life Effective 4/01/2003 its maximum stated retention (not a special retention limit) for the plan and the insured's issue age, sex, and mortality classification in effect at the time the reinsurance was ceded to the Reinsurer, or if the Ceding Company did not retain insurance on the life, it may apply its increased retention limits to reduce the amount of reinsurance as follows: 1. The reduction in reinsurance will become effective on the next annual premium anniversary after the individual policy has been inforce for at least twenty (20) years. 2. If more than one policy per life is eligible for recapture, then the eligible policies may be recaptured beginning with the policy with the earliest issue date and continuing in chronological order according to the remaining policies' issue dates. 3. It is understood that the Ceding Company will not re-cede the business once it has been recaptured for a period of at least three (3) years unless the Reinsurer agrees to accept this business. 4. If any reinsured policy is recaptured, all reinsured policies eligible for recapture under the provisions of this Article must be recaptured up to the Ceding Company's new maximum retention limits in a consistent manner and the Ceding Company must increase its total amount of insurance on each reinsured life. The Ceding Company may not revoke its election to recapture for policies becoming eligible at future anniversaries.

INCREASE IN RETENTION. 1. If we should increase our retention limits, prompt written notice of the increase must be given to you. 2. We will have the option of recapturing the reinsurance under this Agreement when our retention limit increases. We may exercise our option to recapture by giving written notice to you within ninety (90) days after the effective date of the increase. 3. If we exercise our option to recapture, then; A. We must reduce the reinsurance on each individual life on which we retained our maximum retention limit for the age and mortality rating that was in effect at the time the reinsurance was ceded to you. B. No recapture will be made to reinsurance on an individual life if (a) we retained a special retention limit less than our maximum retention limit for the age and mortality rating in effect at the time the reinsurance was ceded to you, or if (b) we did not retain insurance on the life. C. We must increase our total amount of insurance on the individual life up to our new retention limit by reducing the reinsurance. If an individual life is shared by more than one reinsurer, your percentage of the reduced reinsurance will be the same percentage as your initial reinsurance on the individual risk. D. The reduction of reinsurance will become effective on the later of the following dates: (1) The policy anniversary date immediately following the effective date of our increase in retention limits. (2) The number of years stated in Schedule A starting with the 'policy date' for the risk involved or on the "Reinsurance Cession Card".

INCREASE IN RETENTION. 1. If Cedent should increase Cedent's Retention Limits shown in Schedule C, Cedent shall give Reinsurer prompt written notice of this increase. 2. Cedent will have the option to recapture a portion of the reinsurance under this Agreement when Cedent's Retention Limits increase.

INCREASE IN RETENTION. The Reinsurer shall not be liable for benefits paid under the Ceding Company’s conditional receipt or temporary insurance agreement unless all the conditions for automatic reinsurance coverage are met. After a policy is issued, no reinsurance benefits are payable under this pre-issue coverage provision. The Reinsurer’s liability under the Ceding Company’s conditional receipt or temporary insurance agreement is limited to the lesser of i. or ii. below:

INCREASE IN RETENTION. 1. If Cedent should Increase Cedent's retention limits, Cedent shall give Reinsurer prompt written notice of this increase. 2. Cedent will have the option to recapture all or any part of the reinsurance under this Agreement when Cedent's retention limit increases, Cedent may exercise Cedent's option to recapture by giving Reinsurer ninety (90) days prior written notice of such recapture. 3. If Cedent exercise this option to recapture, then A. Cedent must reduce the reinsurance on each individual life on which Cedent retained % of Cedent's maximum retention limit for the age and mortality rating that was in effect at the time the reinsurance was ceded to Reinsurer. B. No recapture will be made to reinsurance on an individual life if Cedent did not retain insurance on the life. C. Cedent must increase Cedent's total amount of insurance on the individual life up to Cedent's new retention limit by reducing the total reinsurance on that life by the same amount. If an individual life is shared by more than one reinsurer, Reinsurer's percentage of the reduced reinsurance will be the same percentage as Reinsurer's initial reinsurance on the individual risk. D. The reduction of reinsurance will become effective on the later of the following dates: (1) The policy anniversary date immediately following the effective date of Cedent's increase in retention limits. (2) The number of years stated in Schedule A starting with the original policy date shown on Cedent's listing.

INCREASE IN RETENTION. 7 VIII. Reinstatement. . . . . . . . . . . . . . . . . . . 8 IX. Expenses . . . . . . . . . . . . . . . . . . . . . 9 X. Claims . . . . . . . . . . . . . . . . . . . . . . 9 XI. Extra-Contractual Damages. . . . . . . . . . . . .11 XII.

INCREASE IN RETENTION. The risk shall not have been submitted on a facultative basis by the Ceding Company to the Reinsurer or other reinsurers within the last .