Common use of Modified Coinsurance Reserve Clause in Contracts

Modified Coinsurance Reserve. The term “Modified Coinsurance Reserve,” as used in this Agreement, means the statutory reserve on the portion of the policies reinsured hereunder. The term “statutory reserve” as used in this Agreement, means the total Separate Account and General Account reserves calculated by Ceding Company under its state insurance regulations and in accordance with accepted actuarial industry practices. The General Account reserves and liabilities reinsured hereunder include the basic reserves for the General Account as well as any additional reserves such as for substandard risks, minimum death benefit Guarantees, and AIDS reserve. The General Account Reserves can be found on Line 1, Page 3 of the Annual Statement. The Separate Account Reserves consist of the sum of Line 27, the insert for Line 13A, and Line 25.02 of Page 3 of the Annual Statement.