Common use of Initial Allowance Clause in Contracts

Initial Allowance. An initial allowance shall be paid to the Company equal to $3,200,000. This Initial Allowance is due and payable on the effective date of this Agreement. This allowance is meant to reimburse the Company for all acquisition costs incurred on the reinsured business. No other allowances will be paid to the Company by the Reinsurer as reimbursement for these expenses.

Initial Allowance. An initial allowance shall be paid to the Company equal to $3,200,0003,400,000. This Initial Allowance is due and payable on the effective date of this Agreement. This allowance is meant to reimburse the Company for all acquisition costs incurred on the reinsured business. No other allowances will be paid to the Company by the Reinsurer as reimbursement for these expenses.