Common use of Policy Exchanges Clause in Contracts

Policy Exchanges. (a) For the term of this Agreement, unless Reinsurer has provided prior written consent, Cedant shall not, and shall not permit any of its Affiliates to, directly or indirectly, solicit or encourage on a targeted, programmatic or systematic basis any policyholders, contractholders, owners, insureds, or beneficiaries under any Reinsured Policy to exchange, convert or transfer Reinsured Policies for other policies or contract types written by Cedant or any of its Affiliates that are not reinsured under this Agreement; provided, however, this Section 2.16(a) shall not preclude Cedant from offering or maintaining a policy that allows, or otherwise allowing, a policyholder, contractholder, owner, insured or beneficiary of a Reinsured Policy to exchange such Reinsured Policy, or otherwise engage in a transaction that would result in a replacement of such Reinsured Policy, with another contract that is not reinsured hereunder at the request of such policyholder, contractholder, owner, insured or beneficiary without the prior solicitation or encouragement of Cedant; provided, further, that the provision of notices to policyholders, contractholders, owners, insureds, or beneficiaries required by applicable Law or a Governmental Authority shall not constitute a violation of this Section 2.16(a). (b) For the term of this Agreement, unless Cedant has provided prior written consent, Reinsurer shall not, and shall not permit any of its Affiliates to, directly or indirectly, solicit or encourage on a targeted, programmatic or systematic basis any policyholders, contractholders, owners, insureds, or beneficiaries under any Reinsured Policy to exchange, convert or transfer Reinsured Policies for other policies or contract types written by Reinsurer or any of its Affiliates that are not reinsured under this Agreement; provided, however, this Section 2.16(b) shall not preclude Reinsurer from offering or maintaining a policy that allows, or otherwise allowing, a policyholder, contractholder, owner, insured or beneficiary of a Reinsured Policy to exchange such Reinsured Policy, or otherwise engage in a transaction that would result in a replacement of such Reinsured Policy, with another contract that is not reinsured hereunder at the request of such policyholder, contractholder, owner, insured or beneficiary without the prior solicitation or encouragement of Reinsurer; provided, further, that the provision of notices to policyholders, contractholders, owners, insureds, or beneficiaries required by applicable Law or a Governmental Authority shall not constitute a violation of this Section 2.16(b).