Common use of MINIMUM CESSION Clause in Contracts

MINIMUM CESSION. The Company will not cede a policy to the Reinsurer unless the amount to be reinsured at issue exceeds the Initial Minimum Cession amount shown in Exhibit C. For any reinsured policy where the reinsured net amount at risk has fallen below the Trivial Amount limit shown in Exhibit C, the reinsurance on the policy will continue to be reported but the reported reinsured net amount at risk and reinsurance premiums will be zero. If future policy fluctuations cause the reinsured net amount at risk of the policy to rise above the Trivial Amount Limit, the reinsured net amount at risk and reinsurance premiums will resume accordingly.