Common use of Rate Guarantee Clause in Contracts

Rate Guarantee. The Reinsurer may only increase its reinsurance premiums if [*] . If the Reinsurer increases its premium rates, the Company reserves the right to recapture business affected with no recapture fee. a. Reinsurer will give 90 day written notice of rate change. b. The written notice shall specify that the reinsurance rate increase will be effective on each policy’s next anniversary. c. The Company must give 90 day written notice of intent to recapture. d. The effective date of the recapture will be on the first policy anniversary following notice of the reinsurance rate increase. e. The Company will calculate a terminal accounting that will include a refund of unearned gross premiums net of unpaid claims. f. Reinsurer will not pay any amount representing the reserve held on the business. g. If the Company does not provide the 90-day written notice of its desire to recapture following the notice received from the Reinsurer, this absence shall constitute acceptance of the rate change effective with each policy’s next anniversary. h. If the Company does not provide the 90-day written notice of its desire to recapture following the notice received from the Reinsurer, this absence shall constitute acceptance of the rate change effective with each policy’s next anniversary.