NET AMOUNT AT RISK. GMDB AND EPB ------------
A. The MNAR (Mortality Net Amount at Risk) for each variable annuity contract ceded hereunder shall be equal to the following: MNAR = VNAR + SCNAR + EEMNAR in which: VNAR (Variable Net Amount at Risk) = Maximum (a,b) multiplied by the Reinsurer's Percentage (defined in Schedule A) in which: a = (Contractual Death Benefit - Account Value) and b = 0 SCNAR (Surrender Charge Net Amount at Risk) = Surrender Charges multiplied by the Reinsurer's Percentage EEMNAR (Earnings Enhancement Mortality Net Amount at Risk) = x% * Maximum (a,b) multiplied by the Reinsurer's Percentage where: x% varies by issue age as described under the Death Benefits Ceded section of Schedule A a = (Contractual Death Benefit - Total Purchase Payments Not Withdrawn) b = 0 SPOUSAL CONTINUANCES -------------------- The Reinsurer will indemnify the Cedent for the Reinsurer's Percentage of the SCNAR realized upon death, consistent with the Cedent's indemnification, if any, of a Cedent as a result of the Cedent's waiver of surrender charges when the death benefit is paid out. The Reinsurer shall indemnify the Cedent for the Reinsurer's Percentage of surrender charges indemnified by the Cedent, if any, arising from additional premium deposits contributed by the spouse to the contract on or after the spousal continuance date; provided, however, that the attained age of the surviving spouse, as of the date of continuance, was less than age 81. In no event will the Reinsurer indemnify surrender charges arising from the same premium deposits more than once.
B. The death benefit and the surrender charges will be as described in the variable annuity contract forms specified in Schedule A. GMIB ----
C. The IBNAR (Income Benefit Net Amount at Risk) for each variable annuity contract ceded hereunder shall be equal to the following: IBNAR = Maximum [(IBB * (MAPR/SAPR) - Account Value), 0] * Reinsurer's Percentage where: o The INCOME BENEFIT BASE (IBB) is as defined in Schedule A o The MINIMUM ANNUITY PURCHASE RATE (MAPR) per $1000 is calculated using the following assumptions: Mortality Table Annuity 2000 (Exhibit I) Age Setback 7 Years Mortality Improvement None Unisex Blend: Sex distinct only Interest Rate: 2.5% all years Expenses: None Premium Taxes: Applied by state of residence and market Age: Attained age on exercise date Frequency of payment Monthly Annuity form:
NET AMOUNT AT RISK. The term “Net Amount-at-Risk” (hereinafter “NAR”) shall be defined as the total proceeds of the Policy(ies) less the cash value of the Policy(ies).
NET AMOUNT AT RISK. The policy risk amount reinsured under this Agreement is the net amount at risk, which is determined as of the issue date and each subsequent policy anniversary and is defined as the death benefit minus the contract fund.
NET AMOUNT AT RISK. A. The reinsured Net Amount At Risk at issue is defined as the policy face amount less the amount retained by the Ceding Company, and for automatic policies, multiplied by the Reinsurer’s share as stated in Schedule A. After issue, any change in the policy Net Amount At Risk due to changes in the policy’s account value will be allocated proportionally between Ceding Company and Reinsurer based on the retention and the reinsured Net Amount At Risk at issue. For universal life plans, the Net Amount At Risk is calculated using the account value in effect at the policy anniversary.
B. If life insurance on a reinsured policy is increased and the increase is subject to new underwriting evidence, then the increase of life insurance on the reinsured policy will be administered as though it were the issuance of a new policy. If the increase is not subject to new underwriting evidence, and increases are contractual, then the increase will be automatically accepted by the Reinsurer, but the total amount of reinsurance is not to exceed the Total Reinsurer Automatic Binding Limits shown in Schedule B. Reinsurance rates will be based on the original issue age, duration since issuance of the original policy and the original underwriting classification. Other increases not subject to new underwriting evidence are not allowed under this Agreement.
C. Risk classification changes on facultatively reinsured policies will be subject to the Reinsurer’s approval.
D. The Ultimate Face Amount on policies with Increasing Death Benefits will be determined at policy issuance and will be the death benefit at the maximum attained age as shown under current values in the policy illustration. To determine the allocated risk percentage of each policy’s face amount, the following calculations will be made: % Ceded to Reinsurer = Reinsurer Share of Ultimate Face Amount / Ultimate Face Amount To determine THE REINSURER’s net amount at risk on a policy at any given time, the sum of the policy’s initial face amount and the current value of any applicable Increasing Death Benefit less the policy’s current account value, multiplied by the % Ceded to the Reinsurer. For the avoidance of doubt, THE REINSURER’s liability for policies with Increasing Death Benefits is limited to net amount at risk as calculated in the preceding paragraph and in no event will ever exceed THE REINSURER’s Automatic Binding Limits shown in Schedule A.
NET AMOUNT AT RISK. The Net Amount at Risk on the policies and riders eligible for reinsurance under this Agreement, is defined below: OPTION A BASE POLICY: The Net Amount at Risk is the Death Benefit minus the Policy Value, where the Death Benefit is the greater of the Face Amount or the minimum amount required under Section 7702 of the IRC.
NET AMOUNT AT RISK. A. The IBNAR (Income Benefit Net Amount at Risk) for each variable annuity contract reinsured hereunder shall be equal to the following: IBNAR = Maximum [( IBB * ( MAPR / SAPR ) - Account Value), 0] * REINSURER's Quota Share Percentage where: - The INCOME BENEFIT BASE (IBB) is as defined in Schedule A - The MINIMUM ANNUITY PURCHASE RATE (MAPR) per $1000 is calculated using the following assumptions: Mortality Table: [*] Age Setback: None Mortality Improvement: [*] Unisex Blend: Montana: [*]/[*] All other states: Sex distinct only Interest Rate: [*] all years Expenses: None Premium Taxes: Applied by state of residence and market Age: Attained age nearest birthday on exercise date Frequency of Payment: Monthly or quarterly or annually Annuity Form: Limited to a Life Annuity with a 10 Year Period Certain or Joint and Survivor Life Annuity with 20 Year Period Certain. For qualified plans: period certain to meet IRS requirement. - The SETTLEMENT ANNUITY PURCHASE RATE (SAPR) per $1000, which is used at time of annuitization for reinsurance claims settlement, is calculated using the following assumptions: Mortality Table: [*] Age Setback: None Mortality Improvement: [*] Unisex Blend: [*] All other states: Sex distinct only Interest Rate: [*] minus [*] That interest rate shall never be less than [*] If there is Manufacturers Life of N.A., Agreement No. 2001-48 (GMIB) Page 4 Effective July 1, 2001
NET AMOUNT AT RISK. A. The MNAR (Mortality Net Amount at Risk) for each variable annuity policy form reinsured hereunder, by issue age, shall be equal to the following: [redacted] where: - VNAR (Variable Net Amount at Risk) = [redacted]: - [redacted] SCNAR (Surrender Charge Net Amount at Risk) = [redacted] EEMNAR (Earnings Enhancement Mortality Net Amount at Risk) = [redacted]
B. Spousal Continuances (as described in Schedule A) The REINSURER will reimburse the CEDING COMPANY for the SCNAR (for the Issue Ages defined in Paragraph A, above), realized upon death consistent with the manner in which the CEDING COMPANY waives the surrender charges when death benefit is paid out. Also covered under this Agreement are surrender charges arising from additional premium deposits contributed by the spouse to the policy on or after the spousal continuance date. In no event will the REINSURER reimburse surrender charges arising from the same premium deposits more than once.
NET AMOUNT AT RISK. GMDB AND EPB ------------
A. The MNAR (Mortality Net Amount at Risk) for each variable annuity contract ceded hereunder shall be equal to the following. MNAR = VNAR + SCNAR + EEMNAR in which: VNAR (Variable Net Amount at Risk) = Maximum (a,b) multiplied by the Reinsurer's Percentage (defined in Schedule A) in which: a = (Contractual Death Benefit - Account Value) and b = 0 SCNAR (Surrender Charge Net Amount at Risk) = Surrender Charges multiplied by the Reinsurer's Percentage EEMNAR (Earnings Enhancement Mortality Net Amount at Risk) = x% * Maximum (a,b) multiplied by the Reinsurer's Percentage where: x% varies by issue age and is as described in the Reinsurance Contracts specified in Schedule A a = (Contractual Death Benefit - Total Purchase Payments Not Withdrawn) b = 0
B. The death benefit and the surrender charges will be as described in the variable annuity contract forms specified in Schedule A. GMIB ----
C. The IBNAR (Income Benefit Net Amount at Risk) for each variable annuity contract ceded hereunder shall be equal to the following:
(i) The Guaranteed Principal Adjustment as defined in the rider * Reinsurer's Percentage if the Income Benefit contains a Guaranteed Principal Option and the option is exercised; or
NET AMOUNT AT RISK. GMDB AND EPB
A. The MNAR (Mortality Net Amount at Risk) for each variable annuity contract ceded hereunder shall be equal to the following: MNAR = VNAR + SCNAR + EEMNAR in which: VNAR (Variable Net Amount at Risk) = Maximum (a,b) multiplied by the Reinsurer's Percentage (defined in Schedule A) in which: a = (Contractual Death Benefit - Account Value) and b = 0 SCNAR (Surrender Charge Net Amount at Risk) = Surrender Charges multiplied by the Reinsurer's Percentage EEMNAR (Earnings Enhancement Mortality Net Amount at Risk) = x% * Maximum (a,b) multiplied by the Reinsurer's Percentage where: x% varies by issue age as described under the Death Benefits Ceded section of Schedule A a = (Contractual Death Benefit - Total Purchase Payments Not Withdrawn)
NET AMOUNT AT RISK. Life reinsurance under this Agreement will be on the Yearly Renewable Term plan for the Amount at Risk. We will maintain a level retention in all years, and you will absorb any increase or decrease in the amount at risk for any policy. Calculation of the Net Amount at Risk for Joint and Last Survivorship Plans is outlined in this Exhibit C.
