Common use of Reductions, Terminations and Reinstatements Clause in Contracts

Reductions, Terminations and Reinstatements. If any part of the underlying coverage on a life reinsured under this Agreement is reduced or terminated, the amount of reinsurance will also be reduced or terminated to the extent that we will continue to maintain our appropriate retention limit as shown in Exhibit A for the issue age and table rating of the insured. We will not be required to assume amounts in excess of the retention limit that was in force when the affected policy or policies were issued. The total amount of the reduction of a reinsured policy will be applied directly to your net amount at risk. If a policy reinsured under this Agreement is lapsed or terminated, the reinsurance will also terminate. If additional policies on the same life are reinsured with you, and if the termination causes us to maintain less than the retention limit shown in Exhibit A, the policy(ies) issued next in sequence to the terminated policy will be decreased until we maintain our full retention on the risk. We will also follow the procedures shown in the above paragraphs when the reduction or termination applies to a policy or policies that we have fully retained, and where the reduction or termination will cause us to maintain less than our current retention for any policy or policies reinsured.