Common use of Business Reforms Clause in Contracts

Business Reforms. The Company agrees that within sixty (60) days from the Effective Date of this Agreement, the Company shall adopt the following policies and procedures: a. Perform comparisons, either directly or indirectly, of all of its in-force and l apsed Insureds, Accountholders, Annuity Contract Owners (for products with a Death Benefit payable upon death of such Annuity Contract Owner), and annuitants, for which the Company provides Recordkeeping services, against the DMF, or an equivalent database containing the same information as the DMF, on at least a monthly basis in accordance with the transition period set forth in Schedule B. The Company shall use the comparison criteria specified in Schedule A or other criteria as approved by the regulator. In the event that the Company uses different comparison criteria than those specified in Schedule A or otherwise approved by the regulator, the Company may be subject to sanctions to the extent that it obtains five percent (5%) fewer valid matches than would otherwise have been obtained using Schedule A or the approved criteria. b. Subject to Schedule B, if the Company is not contacted by a Beneficiary within one hundred twenty (120) days of the Date of Death Notice, the Company shall promptly commence a Thorough Search, which shall be completed within one (1) year from the Date of Death Notice. At the conclusion of that one (1) year period, if (i) the Beneficiary cannot be located by a Thorough Search and (ii) the Company is unable to establish an Exception, it shall report and remit the death benefit proceeds as Unclaimed Property to the affected state(s) in accordance with the applicable Unclaimed Property Laws. The Company shall advise the Unclaimed Property agency that it in good faith has reason to believe that the death benefit proceeds will be reportable in the future as unclaimed property, shall show the agency the Company's efforts to locate the owner, and shall show that it has complied with the appropriate Unclaimed Property Laws necessary to report and remit the death benefit proceeds. If the Unclaimed Property agency fails to assume the liability of the death benefit proceeds and release the Company of all liability to the extent provided by the appropriate Unclaimed Property Laws, the Company shall no longer be required to remit the death benefit proceeds under this section and instead shall remit the death benefit proceeds to the affected State(s) within three (3) or five (5) years from Date of Death as appropriate. c. For the sole purpose of this Agreement, the Company, within the time period in Schedule B, shall implement policies and procedures establishing a DMF listing as prima facie proof of death and requiring the Company to initiate its death claims process and conduct a Thorough Search for Beneficiaries in accordance with Section 2(b) of this Agreement. Nothing herein is intended nor shall be deemed to determine the requirements for establishing proof of death for any other purpose, or to confer any rights on any party other than the Company and the Signatory States. d. Utilize the DMF or equivalent database on all of its Life Insurance Policy, Annuity Contract, and Retained Asset Account product lines using the comparison methodologies set forth in Section 2(a) of this Agreement. e. This Agreement shall not be construed to allow or require the Company to implement policies or practices that will or may diminish the rights, amounts of benefits due to Beneficiaries under the terms of its Life Insurance Policies, Annuity Contracts, or Retained Asset Accounts. f. Establish policies and procedures to ensure that: i. commencing no later than forty-five (45) days prior to the Maturity Date of an Annuity Contract for which the Company is unable to establish an Exception, at least two (2) letters are sent to an Annuity Contract Owner notifying the owner of the upcoming Maturity Date, stating that the Contract will be annuitized following the Maturity Date if no response is received, and identifying any alternatives to annuitization available under the Contract (e.g., extension of the Maturity Date; surrender of the Contract); ii. the Company shall immediately commence a Thorough Search for the Annuity Contract Owner if the letters described in subparagraph i. are returned as undeliverable; iii. an affirmative request by an Annuity Contract Owner, in accordance with the terms of the Contract, will be required by the Company before a Maturity Date is extended, and such request will be recorded in the Company's books and records; iv. the Annuity Contract is annuitized as soon as practicable, but in no event more than forty-five (45) days following the Maturity Date, if the Company has a valid address for the Annuity Contract Owner and no response is received to the letters described in subparagraph i. hereof; v. if a Thorough Search for the Annuity Contract Owner is unsuccessful, or if annuity payments for a contract that has been annuitized under paragraph (iv) above are not deposited within one (1) year, the proceeds will be reported and remitted as Unclaimed Property to the affected state(s) in accordance with the applicable Unclaimed Property Laws. The Company shall advise the Unclaimed Property agency that it in good faith has reason to believe that the proceeds will be reportable in the future as unclaimed property, shall show the agency the Company's efforts to locate the owner, and shall show that it has complied with the appropriate Unclaimed Property Laws necessary to report and remit the proceeds. If the Unclaimed Property agency fails to assume the liability of the proceeds and release the Company of all liability to the extent provided by the appropriate Unclaimed Property Laws, the Company shall no longer be required to remit the proceeds under this section and instead shall remit the proceeds to the affected State(s) within three (3) or five (5) years from Date of Death as appropriate. g. Ensure that all Retained Asset Accounts are monitored for inactivity and each is notified that the failure of an Accountholder to make a withdrawal from the account or to respond to communications from the Company may cause the account to be declared dormant and subject to escheat based on the last documented contact with the Accountholder or the Accountholder's authorized representative, subject to Schedule B. h. The value of the Retained Asset Account(s) shall be the value of the account as of the date the property is paid to the party determined to be the owner of the account or reported and remitted to the affected state(s). i. Subject to Schedule B, a Thorough Search for a Beneficiary of a Retained Asset Account or an Accountholder, as appropriate, shall commence following the earlier of (i) one hundred twenty (120) days following the Date of Death Notice, (ii) the earlier of three (3) or five (5) years, subject to the Unclaimed Property Laws of the affected state, after the date that the Accountholder last initiated a financial or administrative transaction or (iii) the earlier of three (3) or five (5) years, subject to the Unclaimed Property Laws of the affected state, after the last Accountholder-authenticated response to the Company that is documented on the Company's books and records. In the event that the Company is unable to locate a Beneficiary or Accountholder and is unable to establish an Exception within one (1) year after the commencement of the Thorough Search, it shall report and remit the proceeds of the Retained Asset Account as Unclaimed Property to the affected state(s) in accordance with the Unclaimed Property Laws. The Company shall advise the Unclaimed Property agency that it in good faith has reason to believe that the proceeds will be reportable in the future as unclaimed property, shall show the agency the Company's efforts to locate the owner, and shall show that it has complied with the appropriate Unclaimed Property Laws necessary to report and remit the proceeds. If the Unclaimed Property agency fails to assume the liability of the proceeds and release the Company of all liability to the extent provided by the appropriate Unclaimed Property Laws, the Company shall no longer be required to remit the proceeds under this section and instead shall remit the proceeds to the affected State(s) within three (3) or five (5) years from Date of Death as appropriate. i. The death benefit under a Life Insurance Policy shall be determined in accordance with the policy terms as of the Date of Death of the Insured. The death benefit for a variable life insurance policy shall be determined utilizing the value of assets maintained in the separate accounts or other investments as of the date a claim is received in good order from a Beneficiary or Beneficiaries, or as of 20 business days prior to when the proceeds are remitted as Unclaimed Property to the affected state(s). j. The death benefit for a fixed annuity contract shall be determined in accordance with the terms of the Annuity Contract and based on the value of assets held in the customer’s account as of the date the property is paid to a Beneficiary or Beneficiaries or as of 20 business days prior to when the proceeds are remitted as Unclaimed Property to the affected state(s). The death benefit for a variable annuity contract shall be determined utilizing the value of assets maintained in the separate accounts or other investments as of the date a claim is received in good order from a Beneficiary or Beneficiaries, or as of 20 business days prior to when the proceeds are remitted as Unclaimed Property to the affected state(s). k. The value of the Retained Asset Account(s) shall be the value of the account as of the date the property is paid to the party determined to be the owner of the account or reported and remitted to the affected state(s). l. The Company shall not deduct or charge the Beneficiaries, either directly or indirectly through or by any person or company, for any fees or costs as part of the Thorough Search. m. The Company shall comply with the Unclaimed Property Audit Agreement. Nothing in this Agreement shall abrogate the obligations of the Company under the Unclaimed Property Audit Agreement, including but not limited to the process established for escheating the proceeds of Missing Data Life Policies. n. The Company may petition a Department to terminate or modify this Agreement in that state. Such petition may include, but not be limited to the following grounds: (i) the Agreement's terms, in whole or in part, are inconsistent with the statutes, rules, or regulations then in effect in that state;

Business Reforms. The Company agrees that within sixty (60) days from the Effective Date of this Agreement, the Company shall adopt the following policies and procedures: a. Perform comparisons, either directly or indirectly, of all of its in-force and l apsed Insureds, Accountholders, Annuity Contract Owners (for products with a Death Benefit payable upon death of such Annuity Contract Owner)Owners, and annuitants, for which the Company provides Recordkeeping services, against the DMF, or an equivalent database containing the same information as the DMF, on at least a monthly basis in accordance with the transition period set forth in Schedule B. The Company shall use the comparison criteria specified in Schedule A or other criteria as approved by the regulator. A. In the event that the Company uses different comparison criteria than those specified in Schedule A or otherwise approved by the regulatorA, the Company may be subject to sanctions to the extent that it obtains five percent (5%) fewer valid matches than would otherwise have been obtained using Schedule A or the approved criteria.A. b. Subject to Schedule B, if the Company is not contacted by a Beneficiary within one hundred twenty (120) days of the Date of Death Notice, the Company shall promptly commence a Thorough Search, which shall be completed within one one (1) year from the Date of Death Notice. At the conclusion of that one (1) year period, if (i) the Beneficiary cannot be located by a Thorough Search and (ii) the Company is unable to establish an Exception, it shall report and remit the death benefit proceeds as Unclaimed Property to the affected state(s) in accordance with the applicable Unclaimed Property Laws. The Company shall advise the Unclaimed Property agency that it in good faith has reason to believe that the death benefit proceeds will be reportable in the future as unclaimed property, shall show the agency the Company's ’s efforts to locate the owner, and shall show that it has complied with the appropriate Unclaimed Property Laws necessary to report and remit the death benefit proceeds. If the Unclaimed Property agency fails to assume the liability of the death benefit proceeds and release the Company of all liability to the extent provided by the appropriate Unclaimed Property Laws, the Company shall no longer be required to remit the death benefit proceeds under this section and instead shall remit the death benefit proceeds to the affected State(s) within three (3) or five (5) years from the Date of Death as appropriate. c. For the sole purpose of this Agreement, the Company, within the time period in Schedule B, shall implement policies and procedures establishing a DMF listing as prima facie proof of death and requiring the Company to initiate its death claims process and conduct a Thorough Search for Beneficiaries in accordance with Section 2(b) of this Agreement. Nothing herein is intended nor shall be deemed to determine the requirements for establishing proof of death for any other purpose, or to confer any rights on any party other than the Company and the Signatory States. d. Utilize the DMF or equivalent database on all of its Life Insurance Policy, Annuity Contract, and Retained Asset Account product lines using the comparison methodologies set forth in Section 2(a) of this Agreement. e. This Agreement shall not be construed to allow or require the Company to implement policies or practices that will or may diminish the rights, amounts of benefits due to Beneficiaries under the terms of its Life Insurance Policies, Annuity Contracts, or Retained Asset Accounts. f. Establish policies and procedures to ensure that: i. commencing no later than forty-five (45) days prior to the Maturity Date of an Annuity Contract for which the Company is unable to establish an Exception, at least two (2) letters are sent to an Annuity Contract Owner notifying the owner of the upcoming Maturity Date, stating that the Contract will be annuitized following the Maturity Date if no response is received, and identifying any alternatives to annuitization available under the Contract (e.g., extension of the Maturity Date; surrender of the Contract); ii. the Company shall immediately commence a Thorough Search for the Annuity Contract Owner if the letters described in subparagraph i. are returned as undeliverable; iii. an affirmative request by an Annuity Contract Owner, in accordance with the terms of the Contract, will be required by the Company before a Maturity Date is extended, and such request will be recorded in the Company's books and records; iv. the Annuity Contract is annuitized as soon as practicable, but in no event more than forty-five (45) days following the Maturity Date, if the Company has a valid address for the Annuity Contract Owner and no response is received to the letters described in subparagraph i. hereof; v. if a Thorough Search for the Annuity Contract Owner is unsuccessful, or if annuity payments for a contract that has been annuitized under paragraph (iv) above are not deposited within one (1) year, the proceeds will be reported and remitted as Unclaimed Property to the affected state(s) in accordance with the applicable Unclaimed Property Laws. The Company shall advise the Unclaimed Property agency that it in good faith has reason to believe that the proceeds will be reportable in the future as unclaimed property, shall show the agency the Company's ’s efforts to locate the owner, and shall show that it has complied with the appropriate Unclaimed Property Laws necessary to report and remit the proceeds. If the Unclaimed Property agency fails to assume the liability of the proceeds and release the Company of all liability to the extent provided by the appropriate Unclaimed Property Laws, the Company shall no longer be required to remit the proceeds under this section and instead shall remit the proceeds to the affected State(s) within three (3) or five (5) years from the Date of Death as is appropriate. g. Ensure that all Retained Asset Accounts are monitored for inactivity and each is notified that the failure of an Accountholder to make a withdrawal from the account or to respond to communications from the Company may cause the account to be declared dormant and subject to escheat based on the last documented contact with the Accountholder or the Accountholder's ’s authorized representative, subject to Schedule B. h. The value of the Retained Asset Account(s) shall be the value of the account as of the date the property is paid to the party determined to be the owner of the account or reported and remitted to the affected state(s). i. Subject to Schedule B, a Thorough Search for a Beneficiary of a Retained Asset Account or an Accountholder, as appropriate, shall commence following the earlier of (i) one hundred twenty (120) days following the Date of Death Notice, (ii) the earlier of three (3) or five (5) years, subject to the Unclaimed Property Laws of the affected state, after the date that the Accountholder last initiated a financial or administrative transaction or (iii) the earlier of three (3) or five (5) years, subject to the Unclaimed Property Laws of the affected state, after the last Accountholder-authenticated response to the Company that is documented on the Company's books and records. In the event that the Company is unable to locate a Beneficiary or Accountholder and is unable to establish an Exception within one (1) year after the commencement of the Thorough Search, it shall report and remit the proceeds of the Retained Asset Account as Unclaimed Property to the affected state(s) in accordance with the Unclaimed Property Laws. The Company shall advise the Unclaimed Property agency that it in good faith has reason to believe that the proceeds will be reportable in the future as unclaimed property, shall show the agency the Company's efforts to locate the owner, and shall show that it has complied with the appropriate Unclaimed Property Laws necessary to report and remit the proceeds. If the Unclaimed Property agency fails to assume the liability of the proceeds and release the Company of all liability to the extent provided by the appropriate Unclaimed Property Laws, the Company shall no longer be required to remit the proceeds under this section and instead shall remit the proceeds to the affected State(s) within three (3) or five (5) years from Date of Death as appropriate. i. The death benefit under a Life Insurance Policy shall be determined in accordance with the policy terms as of the Date of Death of the Insured. The death benefit for a variable life insurance policy shall be determined utilizing the value of assets maintained in the separate accounts or other investments as of the date a claim is received in good order from a Beneficiary or Beneficiaries, or as of 20 business days prior to when the proceeds are remitted as Unclaimed Property to the affected state(s). j. The death benefit for a fixed annuity contract shall be determined in accordance with the terms of the Annuity Contract and based on the value of assets held in the customer’s account as of the date the property is paid to a Beneficiary or Beneficiaries or as of 20 business days prior to when the proceeds are remitted as Unclaimed Property to the affected state(s). The death benefit for a variable annuity contract shall be determined utilizing the value of assets maintained in the separate accounts or other investments as of the date a claim is received in good order from a Beneficiary or Beneficiaries, or as of 20 business days prior to when the proceeds are remitted as Unclaimed Property to the affected state(s). k. The value of the Retained Asset Account(s) shall be the value of the account as of the date the property is paid to the party determined to be the owner of the account or reported and remitted to the affected state(s). l. The Company shall not deduct or charge the Beneficiaries, either directly or indirectly through or by any person or company, for any fees or costs as part of the Thorough Search. m. The Company shall comply with the Unclaimed Property Audit Agreement. Nothing in this Agreement shall abrogate the obligations of the Company under the Unclaimed Property Audit Agreement, including but not limited to the process established for escheating the proceeds of Missing Data Life Policies. n. The Company may petition a Department to terminate or modify this Agreement in that state. Such petition may include, but not be limited to the following grounds: (i) the Agreement's terms, in whole or in part, are inconsistent with the statutes, rules, or regulations then in effect in that state;,

Business Reforms. The Company agrees that within sixty (60) days from the Effective Date of this Agreement, the Company shall adopt the following policies and procedures: a. Perform comparisons, either directly or indirectly, of all of its in-force and l apsed Insureds, Accountholders, Annuity Contract Owners (for products with a Death Benefit payable upon death of such Annuity Contract Owner), and annuitants, for which the Company provides Recordkeeping services, against the DMF, or an equivalent database containing the same information as the DMF, on at least a monthly basis in accordance with the transition period set forth in Schedule B. The Company shall use the comparison criteria specified in Schedule A or other criteria as approved by the regulator. In the event that the Company uses different comparison criteria than those specified in Schedule A or otherwise approved by the regulator, the Company may be subject to sanctions to the extent that it obtains five percent (5%) fewer valid matches than would otherwise have been obtained using Schedule A or the approved criteria. b. Subject to Schedule B, if the Company is not contacted by a Beneficiary within one hundred twenty (120) days of the Date of Death Notice, the Company shall promptly commence a Thorough Search, which shall be completed within one (1) year from the Date of Death Notice. At the conclusion of that one (1) year period, if (i) the Beneficiary cannot be located by a Thorough Search and (ii) the Company is unable to establish an Exception, it shall report and remit the death benefit proceeds as Unclaimed Property to the affected state(s) in accordance with the applicable Unclaimed Property Laws. The Company shall advise the Unclaimed Property agency that it in good faith has reason to believe that the death benefit proceeds will be reportable in the future as unclaimed property, shall show the agency the Company's efforts to locate the owner, and shall show that it has complied with the appropriate Unclaimed Property Laws necessary to report and remit the death benefit proceeds. If the Unclaimed Property agency fails to assume the liability of the death benefit proceeds and release the Company of all liability to the extent provided by the appropriate Unclaimed Property Laws, the Company shall no longer be required to remit the death benefit proceeds under this section and instead shall remit the death benefit proceeds to the affected State(s) within three (3) or five (5) years from Date of Death as appropriate. c. For the sole purpose of this Agreement, the Company, within the time period in Schedule B, shall implement policies and procedures establishing a DMF listing as prima facie proof of death and requiring the Company to initiate its death claims process and conduct a Thorough Search for Beneficiaries in accordance with Section 2(b) of this Agreement. Nothing herein is intended nor shall be deemed to determine the requirements for establishing proof of death for any other purpose, or to confer any rights on any party other than the Company and the Signatory States. d. Utilize the DMF or equivalent database on all of its Life Insurance Policy, Annuity Contract, and Retained Asset Account product lines using the comparison methodologies set forth in Section 2(a) of this Agreement. e. This Agreement shall not be construed to allow or require the Company to implement policies or practices that will or may diminish the rights, amounts of benefits due to Beneficiaries under the terms of its Life Insurance Policies, Annuity Contracts, or Retained Asset Accounts. f. Establish policies and procedures to ensure that: i. commencing no later than forty-five (45) days prior to the Maturity Date of an Annuity Contract for which the Company is unable to establish an Exception, at least two (2) letters are sent to an Annuity Contract Owner notifying the owner of the upcoming Maturity Date, stating that the Contract will be annuitized following the Maturity Date if no response is received, and identifying any alternatives to annuitization available under the Contract (e.g., extension of the Maturity Date; surrender of the Contract); ii. the Company shall immediately commence a Thorough Search for the Annuity Contract Owner if the letters described in subparagraph i. are returned as undeliverable; iii. an affirmative request by an Annuity Contract Owner, in accordance with the terms of the Contract, will be required by the Company before a Maturity Date is extended, and such request will be recorded in the Company's books and records; iv. the Annuity Contract is annuitized as soon as practicable, but in no event more than forty-five (45) days following the Maturity Date, if the Company has a valid address for the Annuity Contract Owner and no response is received to the letters described in subparagraph i. hereof; v. if a Thorough Search for the Annuity Contract Owner is unsuccessful, or if annuity payments for a contract that has been annuitized under paragraph (iv) above are not deposited within one (1) year, the proceeds will be reported and remitted as Unclaimed Property to the affected state(s) in accordance with the applicable Unclaimed Property Laws. The Company shall advise the Unclaimed Property agency that it in good faith has reason to believe that the proceeds will be reportable in the future as unclaimed property, shall show the agency the Company's efforts to locate the owner, and shall show that it has complied with the appropriate Unclaimed Property Laws necessary to report and remit the proceeds. If the Unclaimed Property agency fails to assume the liability of the proceeds and release the Company of all liability to the extent provided by the appropriate Unclaimed Property Laws, the Company shall no longer be required to remit the proceeds under this section and instead shall remit the proceeds to the affected State(s) within three (3) or five (5) years from Date of Death as appropriate. g. Ensure that all Retained Asset Accounts are monitored for inactivity and each is notified that the failure of an Accountholder to make a withdrawal from the account or to respond to communications from the Company may cause the account to be declared dormant and subject to escheat based on the last documented contact with the Accountholder or the Accountholder's authorized representative, subject to Schedule B. h. The value of the Retained Asset Account(s) shall be the value of the account as of the date the property is paid to the party determined to be the owner of the account or reported and remitted to the affected state(s). i. Subject to Schedule B, a Thorough Search for a Beneficiary of a Retained Asset Account or an Accountholder, as appropriate, shall commence following the earlier of (i) one hundred twenty (120) days following the Date of Death Notice, (ii) the earlier of three (3) or five (5) years, subject to the Unclaimed Property Laws of the affected state, after the date that the Accountholder last initiated a financial or administrative transaction or (iii) the earlier of three (3) or five (5) years, subject to the Unclaimed Property Laws of the affected state, after the last Accountholder-authenticated response to the Company that is documented on the Company's books and records. In the event that the Company is unable to locate a Beneficiary or Accountholder and is unable to establish an Exception within one (1) year after the commencement of the Thorough Search, it shall report and remit the proceeds of the Retained Asset Account as Unclaimed Property to the affected state(s) in accordance with the Unclaimed Property Laws. The Company shall advise the Unclaimed Property agency that it in good faith xxxxx has reason to believe that the proceeds will be reportable in the future as unclaimed property, shall show the agency the Company's efforts to locate the owner, and shall show that it has complied with the appropriate Unclaimed Property Laws necessary to report and remit the proceeds. If the Unclaimed Property agency fails to assume the liability of the proceeds and release the Company of all liability to the extent provided by the appropriate Unclaimed Property Laws, the Company shall no longer be required to remit the proceeds under this section and instead shall remit the proceeds to the affected State(s) within three (3) or five (5) years from Date of Death as appropriate. i. The death benefit under a Life Insurance Policy shall be determined in accordance with the policy terms as of the Date of Death of the Insured. The death benefit for a variable life insurance policy shall be determined utilizing the value of assets maintained in the separate accounts or other investments as of the date a claim is received in good order from a Beneficiary or Beneficiaries, or as of 20 business days prior to when the proceeds are remitted as Unclaimed Property to the affected state(s). j. The death benefit for a fixed annuity contract shall be determined in accordance with the terms of the Annuity Contract and based on the value of assets held in the customer’s account as of the date the property is paid to a Beneficiary or Beneficiaries or as of 20 business days prior to when the proceeds are remitted as Unclaimed Property to the affected state(s). The death benefit for a variable annuity contract shall be determined utilizing the value of assets maintained in the separate accounts or other investments as of the date a claim is received in good order from a Beneficiary or Beneficiaries, or as of 20 business days prior to when the proceeds are remitted as Unclaimed Property to the affected state(s). k. The value of the Retained Asset Account(s) shall be the value of the account as of the date the property is paid to the party determined to be the owner of the account or reported and remitted to the affected state(s). l. The Company shall not deduct or charge the Beneficiaries, either directly or indirectly through or by any person or company, for any fees or costs as part of the Thorough Search. m. The Company shall comply with the Unclaimed Property Audit Agreement. Nothing in this Agreement shall abrogate the obligations of the Company under the Unclaimed Property Audit Agreement, including but not limited to the process established for escheating the proceeds of Missing Data Life Policies. n. The Company may petition a Department to terminate or modify this Agreement in that state. Such petition may include, but not be limited to the following grounds: (i) the Agreement's terms, in whole or in part, are inconsistent with the statutes, rules, or regulations then in effect in that state;