Common use of PREMIUM RATE GUARANTEE Clause in Contracts

PREMIUM RATE GUARANTEE. The Life Reinsurance Premium rates contained in this Agreement are guaranteed for one year, and the Reinsurer anticipates continuing to accept Premiums on the basis of these rates indefinitely. If the Reinsurer deems it necessary to increase rates, then it shall provide the Ceding Company with underlying basis for the rate increase. In no event will such increased premium rates be higher than the greater of (a) the rates in Exhibit D – Reinsurance Rates or (b) For products that have not adopted the 2017 CSO Loaded Sex & Smoker Distinct, Select & Ultimate Age Nearest Birthday mortality table: the valuation net premiums for annual renewable term insurance calculated using the applicable statutory minimum valuation select and ultimate mortality table and statutory maximum interest rate for the reinsured business for each year of issue; or For products that have adopted the 2017 CSO Loaded Sex & Smoker Distinct, Select & Ultimate Age Nearest Birthday mortality table: the valuation net premiums for annual renewable term insurance calculated using a multiple of 125% of the 2017 CSO Loaded Sex & Smoker Distinct, Ultimate Only, Preferred Structure, Age Nearest Birthday mortality table and statutory maximum interest rate for the reinsured business for each year of issue. An additional mortality load consistent with pricing will be applied to non-standard risks including but not limited to conversions, post-level term, and substandard policies. For inforce blocks of business, if an increase in reinsurance rates occurs on a guaranteed product that is reinsured on non-guaranteed terms, the Ceding Company, with prior written notice to the Reinsurer has the right to recapture the business to which such increase applies as of the effective date of the increase in reinsurance rates. For inforce blocks of business, if an increase in reinsurance rates occurs on a non-guaranteed product that is reinsured on non-guaranteed terms, the Ceding Company should investigate the possibility of increasing its direct pricing or charges to restore the product to previous profitability. If the Ceding Company determines that it cannot reasonably implement such a pricing increase, then, with prior written notice to the Reinsurer, it has the right to recapture the business to which such increase applies as of the effective date of the increase in reinsurance rates.

PREMIUM RATE GUARANTEE. The Life Reinsurance Premium Although the Reinsurer anticipates that the premium rates contained in this Agreement Exhibit D will apply indefinitely, rates are guaranteed for one year, and . The premium rates applicable to the Reinsurer anticipates continuing to accept Premiums on business reinsured under this Agreement will not exceed the basis of these greater of: (1) the premium rates indefinitely. If the Reinsurer deems it necessary to increase rates, then it shall provide the Ceding Company with underlying basis for charges the rate increase. In no event will such increased policyholder, (2) the reinsurance premium rates be higher than the greater of specified in Exhibit D, or (a3) the rates in Exhibit D – Reinsurance Rates or (b) For products that have not adopted the 2017 CSO Loaded Sex & Smoker Distinct, Select & Ultimate Age Nearest Birthday mortality table: the valuation YRT net premiums for annual renewable term insurance calculated using at the applicable statutory minimum valuation 2001 CSO sex and smoker distinct, select and ultimate ultimate, age last birthday mortality table and statutory maximum interest rate for the reinsured business for each year business. The Reinsurer shall notify the Ceding Company of issue; or For products that have adopted its intent to increase the 2017 CSO Loaded Sex & Smoker Distinct, Select & Ultimate Age Nearest Birthday mortality table: reinsurance premium rates at least ninety (90) days prior to the valuation net premiums for annual renewable term insurance calculated using a multiple of 125% effective date of the 2017 CSO Loaded Sex & Smoker Distinctnew rates. The Ceding Company shall notify the Reinsurer of any changes to the premium rates charged to the policyholder, Ultimate Only, Preferred Structure, Age Nearest Birthday mortality table and statutory maximum interest rate for with such notification being provided to the reinsured business for each year Reinsurer within ninety (90) days of issuethe effective date of the new rates. An additional mortality load consistent with pricing will be applied If the Reinsurer elects to non-standard risks including but not limited increase its reinsurance premium rates in response to conversions, post-level term, and substandard policies. For inforce blocks of business, if an increase in reinsurance rates occurs on a guaranteed product that is reinsured on non-guaranteed terms, the Ceding Company’s increase to policyholders, the Reinsurer shall notify the Ceding Company of such increase within ninety (90) days of receipt of the Ceding Company’s notice. The effective date of the Reinsurer’s new rates will coincide with prior written notice to the effective date of the Ceding Company’s increase. Should the Reinsurer increase the reinsurance premium rates on any block of inforce business reinsured under this Agreement by a greater percentage than the Company has raised its retail premiums or cost of insurance charges, which the Company acknowledges and agrees the Reinsurer has the right to recapture the business to which such increase applies as of the effective date of the increase in reinsurance rates. For inforce blocks of business, if an increase in reinsurance rates occurs on a non-guaranteed product that is reinsured on non-guaranteed termsdo for any reason, the Ceding Company should investigate the possibility of increasing its direct pricing or charges to restore the product to previous profitability. If the Ceding Company determines that it cannot reasonably implement such a pricing increase, then, with prior written notice to the Reinsurer, it has shall have the right to recapture all business affected by such increase. The Company must provide the Reinsurer with notice of its intent to recapture all such business no later than ninety (90) days after receipt of the Reinsurer’s notice of the reinsurance premium rate increase, and such recapture will be effective on the policy anniversary coincident with or next following the increase. (R14) 00000-00-00 Final 10 3/12/2017 The Reinsurer does not anticipate holding any deficiency reserves on the business to which such increase applies as reinsured under this Agreement. (R14) 00000-00-00 Final 11 3/12/2017 ARTICLE 6 - POLICY REDUCTIONS, TERMINATIONS AND CHANGES Whenever a change is made in the status, plan, amount or other feature of a policy reinsured under this Agreement, the Reinsurer will, upon receipt of notification of the change, consider adjusted reinsurance coverage in accordance with the provisions of this Article. The Ceding Company will notify the Reinsurer of any change within ninety (90) days after its effective date of the increase in reinsurance ratesdate.

PREMIUM RATE GUARANTEE. The Life Reinsurance Premium rates contained in this Agreement are guaranteed for one year, and the Reinsurer anticipates continuing to accept Premiums on the basis of these rates indefinitely. If the Reinsurer deems it necessary to increase rates, then it shall provide the Ceding Company with underlying basis for the rate increase. In no event will such increased premium rates be higher than the greater of (a) the rates in Exhibit D – Reinsurance Rates or (b) For products that have not adopted the 2017 CSO Loaded Sex & Smoker Distinct, Select & Ultimate Age Nearest Birthday mortality table: the valuation net premiums for annual renewable term insurance calculated using the applicable statutory minimum valuation select and ultimate mortality table and statutory maximum interest rate for the reinsured business for each year of issue; or For products that have adopted the 2017 CSO Loaded Sex & Smoker Distinct, Select & Ultimate Age Nearest Birthday mortality table: the valuation net premiums for annual renewable term insurance calculated using a multiple of 125% of the 2017 CSO Loaded Sex & Smoker Distinct, Ultimate Only, Preferred Structure, Age Nearest Birthday mortality table and statutory maximum interest rate for the reinsured business for each year of issue. An additional mortality load consistent with pricing will be applied to non-standard risks including but not limited to conversions, post-level term, and substandard policiespolicies . For inforce blocks of business, if an increase in reinsurance rates occurs on a guaranteed product that is reinsured on non-guaranteed terms, the Ceding Company, with prior written notice to the Reinsurer has the right to recapture the business to which such increase applies as of the effective date of the increase in reinsurance rates. For inforce blocks of business, if an increase in reinsurance rates occurs on a non-guaranteed product that is reinsured on non-guaranteed terms, the Ceding Company should investigate the possibility of increasing its direct pricing or charges to restore the product to previous profitability. If the Ceding Company determines that it cannot reasonably implement such a pricing increase, then, with prior written notice to the Reinsurer, it has the right to recapture the business to which such increase applies as of the effective date of the increase in reinsurance rates.

PREMIUM RATE GUARANTEE. The Life Reinsurance Premium Although the Reinsurer anticipates that the premium rates contained in this Agreement Exhibit D will apply indefinitely, rates are guaranteed for one year, and . The premium rates applicable to the Reinsurer anticipates continuing to accept Premiums on business reinsured under this Agreement will not exceed the basis of these greater of: (1) the premium rates indefinitely. If the Reinsurer deems it necessary to increase rates, then it shall provide the Ceding Company with underlying basis for charges the rate increase. In no event will such increased policyholder, (2) the reinsurance premium rates be higher than the greater of specified in Exhibit D, or (a3) the rates in Exhibit D – Reinsurance Rates or (b) For products that have not adopted the 2017 CSO Loaded Sex & Smoker Distinct, Select & Ultimate Age Nearest Birthday mortality table: the valuation YRT net premiums for annual renewable term insurance calculated using at the applicable statutory minimum valuation 2001 CSO sex and smoker distinct, select and ultimate ultimate, age last birthday mortality table and statutory maximum interest rate for the reinsured business for each year business. The Reinsurer shall notify the Ceding Company of issue; or For products that have adopted its intent to increase the 2017 CSO Loaded Sex & Smoker Distinct, Select & Ultimate Age Nearest Birthday mortality table: reinsurance premium rates at least ninety (90) days prior to the valuation net premiums for annual renewable term insurance calculated using a multiple of 125% effective date of the 2017 CSO Loaded Sex & Smoker Distinctnew rates. The Ceding Company shall notify the Reinsurer of any changes to the premium rates charged to the policyholder, Ultimate Only, Preferred Structure, Age Nearest Birthday mortality table and statutory maximum interest rate for with such notification being provided to the reinsured business for each year Reinsurer within ninety (90) days of issuethe effective date of the new rates. An additional mortality load consistent with pricing will be applied If the Reinsurer elects to non-standard risks including but not limited increase its reinsurance premium rates in response to conversions, post-level term, and substandard policies. For inforce blocks of business, if an increase in reinsurance rates occurs on a guaranteed product that is reinsured on non-guaranteed terms, the Ceding Company’s increase to policyholders, the Reinsurer shall notify the Ceding Company of such increase within ninety (90) days of receipt of the Ceding Company’s notice. The effective date of the Reinsurer’s new rates will coincide with prior written notice to the effective date of the Ceding Company’s increase. Should the Reinsurer increase the reinsurance premium rates on any block of inforce business reinsured under this Agreement by a greater percentage than the Company has raised its retail premiums or cost of insurance charges, which the Company acknowledges and agrees the Reinsurer has the right to recapture the business to which such increase applies as of the effective date of the increase in reinsurance rates. For inforce blocks of business, if an increase in reinsurance rates occurs on a non-guaranteed product that is reinsured on non-guaranteed termsdo for any reason, the Ceding Company should investigate the possibility of increasing its direct pricing or charges to restore the product to previous profitability. If the Ceding Company determines that it cannot reasonably implement such a pricing increase, then, with prior written notice to the Reinsurer, it has shall have the right to recapture all business affected by such increase. The Company must provide the Reinsurer with notice of its intent to recapture all such business no later than ninety (90) days after receipt of the Reinsurer’s notice of the reinsurance premium rate increase, and such recapture will be effective on the policy anniversary coincident with or next following the increase. (B17) 00000-00-00 Final 10 3/12/2017 The Reinsurer does not anticipate holding any deficiency reserves on the business to which such increase applies as reinsured under this Agreement. (B17) 00000-00-00 Final 11 3/12/2017 ARTICLE 6 - POLICY REDUCTIONS, TERMINATIONS AND CHANGES Whenever a change is made in the status, plan, amount or other feature of a policy reinsured under this Agreement, the Reinsurer will, upon receipt of notification of the change, consider adjusted reinsurance coverage in accordance with the provisions of this Article. The Ceding Company will notify the Reinsurer of any change within ninety (90) days after its effective date of the increase in reinsurance ratesdate.

PREMIUM RATE GUARANTEE. The Life Reinsurance Premium rates contained in this Agreement are guaranteed for one year, and the Reinsurer anticipates continuing to accept Premiums premiums on the basis of these the rates indefinitelyshown in Exhibit E, however, the life reinsurance rates in this Agreement cannot be guaranteed for more than one year. If Should the Reinsurer deems it necessary to increase rates, then it shall provide the Ceding Company with underlying basis for the rate increase. In no event will such increased premium life reinsurance rates be higher on any block of in force business reinsured under this Agreement by a greater percentage than the greater of (a) Company has raised its retail premiums or cost-of-insurance charges, which the rates in Exhibit D – Reinsurance Rates or (b) For products that have not adopted the 2017 CSO Loaded Sex & Smoker Distinct, Select & Ultimate Age Nearest Birthday mortality table: the valuation net premiums for annual renewable term insurance calculated using the applicable statutory minimum valuation select Company acknowledges and ultimate mortality table and statutory maximum interest rate for the reinsured business for each year of issue; or For products that have adopted the 2017 CSO Loaded Sex & Smoker Distinct, Select & Ultimate Age Nearest Birthday mortality table: the valuation net premiums for annual renewable term insurance calculated using a multiple of 125% of the 2017 CSO Loaded Sex & Smoker Distinct, Ultimate Only, Preferred Structure, Age Nearest Birthday mortality table and statutory maximum interest rate for the reinsured business for each year of issue. An additional mortality load consistent with pricing will be applied to non-standard risks including but not limited to conversions, post-level term, and substandard policies. For inforce blocks of business, if an increase in reinsurance rates occurs on a guaranteed product that is reinsured on non-guaranteed terms, the Ceding Company, with prior written notice to agrees the Reinsurer has the right to do for any reason, the Reinsurer will provide the Company with ninety(90) days prior written notice, and the Company has the right to immediately recapture any business affected by such change. With respect to Level Term products, the business Reinsurer will have the right, at anytime during the post level term period, to reevaluate and change, based on market conditions, the post level term (“PLT”) reinsurance rates shown in Exhibit E. If the Reinsurer changes PLT rates, it will notify the Company of the change at least ninety (90) days prior to the end of the level term period or the effective date of the increase, as appropriate. If the reevaluation resulted in an increase in PLT reinsurance rates and the Company does not agree with the increase, it will have an unconditional right to recapture, without penalty, the policies on which such increase applies as the PLT reinsurance rates have been increased. Such right to recapture must be exercised within six (6) months of the effective date of the increase in reinsurance ratesincreased premium and may only be exercised at that time. For inforce blocks of businessIf however, if an the increase in reinsurance rates occurs on was a non-guaranteed product that is reinsured on non-guaranteed termsresult of, and in proportion to, an increase by the Ceding Company should investigate to its current PLT rates, then the possibility of increasing its direct pricing or charges Company will not have such right to restore the product to previous profitabilityrecapture. If the Ceding The Company determines that it cannot reasonably implement such a pricing increase, then, with prior will provide written notice to the Reinsurer, it has the right to recapture the business to which such increase applies as Reinsurer within sixty (60) days of the effective date of the implementing any increase in reinsurance ratesthe Company’s retail premiums or cost-of-insurance charges to the policyowner on any business reinsured under this Agreement. Such notice will be provided with respect to such increases to new business and to in force business.

PREMIUM RATE GUARANTEE. The Life Reinsurance Premium reinsurance premium rates contained in this Agreement are cannot be guaranteed for more than one policy year. Munich Re, and U.S. (Life) reserves the Reinsurer anticipates continuing right to accept Premiums on the basis of these increase its reinsurance premium rates indefinitelyat any time. If the Reinsurer deems it necessary to increase Munich Re, U.S. (Life) increases its rates, then it shall provide give the Ceding Company with underlying basis for ninety (90) days prior written notice of the rate increasechange. In no event Any increase applies only to reinsurance premiums due after the expiration of the notice period. Munich Re, U.S. (Life) will such increased not raise the reinsurance premium rates be higher to greater than the greater of (a) the rates in Exhibit D – Reinsurance Rates or (b) For products that have not adopted the 2017 CSO Loaded Sex & Smoker Distinct, Select & Ultimate Age Nearest Birthday mortality table: the statutory valuation net premiums for annual yearly renewable term insurance calculated using at the applicable statutory minimum valuation select and ultimate mortality table and statutory maximum interest rate for rates applicable at the reinsured business for each year of issue; or For products that have adopted the 2017 CSO Loaded Sex & Smoker Distinct, Select & Ultimate Age Nearest Birthday mortality table: the valuation net premiums for annual renewable term insurance calculated using a multiple of 125policy issue date and 100% of the 2017 2001 CSO Loaded Sex & S&U mortality table, Gender and Smoker Distinct, Ultimate Only, Preferred Structure, Age Nearest Birthday mortality table and statutory maximum interest rate for the reinsured business for each year of issue. An additional mortality load consistent with pricing will be applied to non-standard risks including but not limited to conversions, post-post level term, term and substandard policies. For inforce blocks of business, if an increase in reinsurance rates occurs on a guaranteed product that is reinsured on non-guaranteed terms, the Ceding Company, with prior written notice to the Reinsurer has the right to recapture the business to which such increase applies as of the effective date of the increase in reinsurance rates. For inforce blocks of business, if an increase in reinsurance rates occurs on a non-guaranteed product that is reinsured on non-guaranteed terms, the Ceding Company should investigate the possibility of increasing its direct pricing or charges to restore the product to previous profitability. If the Ceding Company determines that raises its retail premiums or cost of insurance charges on any in-force business reinsured under this Agreement, it cannot reasonably implement such a pricing increaseshall provide Munich Re, then, U.S. (Life) with thirty (30) days prior written notice to of the Reinsurerincrease. Munich Re, it has U.S. (Life) reserves the right to recapture the raise its reinsurance premium rates on such business to which by a corresponding amount. Any such increase applies as of the effective date of the increase in reinsurance ratespremium rates shall become effective on the same date that the Ceding Company’s increase in retail premiums or cost of insurance charges becomes effective. If Munich Re, U.S. (Life) increases its reinsurance premium rates on any block of in-force business under this Agreement on which the Ceding Company has not raised its retail premiums or cost of insurance charges, the Ceding Company has the right, but not the obligation, to recapture, in its entirety, all of the reinsured Policies on which Treaty #4424 Munich American Reassurance Company Page | 13 Munich Re, U.S. (Life) increases the reinsurance premiums. Recapture shall be on the next policy anniversary of each Policy. The Ceding Company must notify Munich Re, U.S. (Life) of its intention to recapture within ninety (90) days of the reinsurance premium rate increase. Recapture under this Section 7.5 shall be governed by the terms set forth in Section 13.2.