[Code of Federal Regulations]
[Title 38, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 38CFR9.12]

[Page 526]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
                CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS
 
PART 9_SERVICEMEMBERS' GROUP LIFE INSURANCE AND VETERANS' GROUP
 
Sec. 9.12  Reinsurance formula.

    The allocation of insurance to the insurer and each reinsurer will 
be based upon the following:
    (a) An amount of the total life insurance in force under the policy 
in proportion to the company's total life insurance in force in the 
United States where:

    The first $100 million in force is counted in full,
    The second $100 million in force is counted at 75 percent,
    The third $100 million in force is counted at 50 percent,
    The fourth $100 million in force is counted at 25 percent,
    And any amount above $400 million in force is counted at 5 percent.

    (b) The allocation will be redetermined at the beginning of each 
policy year for the primary insurer and the companies then reinsuring, 
with the portion as set forth in paragraph (a) of this section based 
upon the corresponding in force (excluding the Servicemembers' Group 
Life Insurance in force) as of the preceding December 31.
    (c) Any life insurance company, which is not initially participating 
in reinsurance or conversions, but satisfies the criteria set forth in 
Sec. 9.11, may subsequently apply to the primary insurer to reinsure 
and convert, or to convert only. The participation of such company will 
be effective as of the beginning of the policy year following the date 
on which application is approved by the insurer.

[40 FR 4135, Jan. 28, 1975. Redesignated and amended at 61 FR 20135, 
20136, May 6, 1996]