Reinsurer’s Payment Obligation. The Reinsurer agrees to pay to the Company one hundred percent (100%) of any of the following amounts actually paid by the Company::
(a) annuity benefits, surrender values, withdrawal benefits, death benefits and any other amounts paid under the Policies. Any such benefit payable by the Reinsurer attributable to Risk Control Separate Accounts or Declared Rate Separate Accounts shall be satisfied solely through assets of the Reinsurer’s Separate Accounts. Any such benefit payable on account of Variable Separate Accounts shall be satisfied using assets from the Variable Separate Accounts. Any such benefit payable by the Reinsurer hereunder attributable to the General Account shall be satisfied using assets from the Reinsurer’s general account.
(b) an amount equal to any Tax cost or detriment actually incurred by the Company on account of, or attributable to, the Policies to the extent such cost or detriment actually increases the taxable income of the Company for any applicable Tax year covered under this Agreement.
(c) any and all Extra Contractual Obligations;
(d) net losses attributable to any Hedging Arrangements, including any costs, expenses or lost investment income incurred by the Company related thereto; and
(e) any and all other directly charged and allocated expenses paid or payable by the Company relating to the Policies, including but not limited to (i) commissions, (ii) product development and acquisition expenses (iii) expenses incurred in the provision of policyholder and benefit payment services, and (iv) Insurance Taxes and Charges. Such expenses and costs shall be allocated between Risk Control Separate Accounts, Declared Rate Separate Accounts, Variable Separate Accounts and the General Account in accordance with SSAP 70.
