Article 6.1.2

(Contractual modification)

(1)  Subject to paragraph (2), the contract of reinsurance shall continue to be on the original incorporated matching terms if the underlying insurance contract is modified after the formation of the contract of reinsurance.

(2)  A term in the underlying insurance contract as described in Article 6.1.1(2) that is modified after the formation of the contract of reinsurance shall be incorporated into the contract of reinsurance if:

(a)  the contract of reinsurance provides that modifications to a term in the underlying insurance contract that has become an incorporated matching term shall be automatically incorporated into the contract of reinsurance; or

(b)  the reinsurer consents to the incorporation of the modified term into the contract of reinsurance after the modification of the underlying insurance contract.

(3)  A modification of the contract of reinsurance as set forth in paragraph (2) becomes effective at the same time as the modification of the underlying insurance contract.