Common use of Net GAAP Liabilities Calculation Clause in Contracts

Net GAAP Liabilities Calculation. No later than the Original Effective Time (as defined in the following paragraph), each Insurer prepared and distributed to Reinsurer, a statement, as of December 31, 2000, of all Net GAAP Liabilities for the Subject Business. Net GAAP Liabilities for purposes of such statement consisted of all insurance liabilities associated with the policies, including claim and claim expense reserves, reserves for future policy benefits (such as active life reserves, unearned premium reserves and advance premiums), policyholder funds left on deposit, reserves in provision of rate credits payable under experience rated contracts, unpaid commissions, accrued premium taxes and guaranty association assessments, allocable valuation fees imposed under state law, amounts payable under reinsurance contracts and accrued interest due on all unpaid liabilities; net of insurance assets associated with the policies, including due and uncollected premiums, balances due from agents, policy, loans, amounts due under reinsurance contracts and accrued interest receivable on all amounts due and uncollected. Such statement was prepared in accordance with generally accepted accounting principles on a basis consistent with the financial reporting and accounting practices of the Insurers with respect to the Subject Business (“Historical GAAP”) and was binding on all parties for purposes of determining the cash transfer pursuant to paragraph 2 of this Article VII. The calculation of the Net GAAP Liabilities, as of December 31, 2000, of the Subject Business of the Insurers was $336,284,921.

Net GAAP Liabilities Calculation. No later than the Original Effective Time (as defined in the following paragraph), each Insurer prepared and distributed to Reinsurer, a statement, as of December 31, 2000, of all Net GAAP Liabilities for the Subject Business. Net GAAP Liabilities for purposes of such statement consisted of all insurance liabilities associated with the policies, including claim and claim expense reserves, reserves for future policy benefits (such as active life reserves, unearned premium reserves and advance premiums), policyholder funds left on deposit, reserves in provision of rate credits payable under experience rated contracts, unpaid commissions, accrued premium taxes and guaranty association assessments, allocable valuation fees imposed under state law, amounts payable under reinsurance contracts and accrued interest due on all unpaid liabilities; net of insurance assets associated with the policies, including due and uncollected premiums, balances due from agents, policy, loans, amounts due under reinsurance contracts and accrued interest receivable on all amounts due and uncollected. Such statement was prepared in accordance with generally accepted accounting principles on a basis consistent with the financial reporting and accounting practices of the Insurers with respect to the Subject Business (“Historical GAAP”) and was binding on all parties for purposes of determining the cash transfer pursuant to paragraph 2 of this Article VII. The calculation of the Net GAAP Liabilities, as of December 31, 2000, of the Subject Business of the Insurers was $336,284,9211,167,848,949.