Common use of SUBSTANDARD ANNUAL REINSURANCE PREMIUMS Clause in Contracts

SUBSTANDARD ANNUAL REINSURANCE PREMIUMS. Substandard extra premiums are available on classes 4 and 6 (Non-Smoker and Smoker). For substandard issues, the substandard extra reinsurance premium (plus any flat extra) is payable for 20 years. After this period, the base reinsurance premium (plus any flat extra) is payable until the end of the premium paying period. The substandard extra annual reinsurance premiums per $1,000 for substandard issues will be the product of the base reinsurance premiums per $1,000 and the factor for the appropriate rating class. Note that this is the total premium per $1,000, including both the base and substandard premium. The factors are as follows: ============================ ================================== Rating Class Factor ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- A 1.40 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- B 1.65 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- C 1.90 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- D 2.25 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- E 2.75 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- F 3.25 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- G 3.75 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- H 4.50 ============================ ==================================

SUBSTANDARD ANNUAL REINSURANCE PREMIUMS. Substandard extra premiums are available on classes 4 and 6 (Non-Smoker and Smoker). For substandard issues, the substandard extra reinsurance premium (plus any flat extra) is payable for 20 years. After this period, the base reinsurance premium (plus any flat extra) is payable until the end of the premium paying period. The substandard extra annual reinsurance premiums per $1,000 for substandard issues will be the product of the base reinsurance premiums per $1,000 and the factor for the appropriate rating class. Note that this is the total premium per $1,000, including both the base and substandard premium. The factors are as follows: ============================ =================================== Rating Class Factor ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- -------------------------------------------------------------- A 1.40 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- -------------------------------------------------------------- B 1.65 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- -------------------------------------------------------------- C 1.90 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- -------------------------------------------------------------- D 2.25 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- -------------------------------------------------------------- E 2.75 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- -------------------------------------------------------------- F 3.25 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- -------------------------------------------------------------- G 3.75 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- -------------------------------------------------------------- H 4.50 ============================ ==============================================================

SUBSTANDARD ANNUAL REINSURANCE PREMIUMS. Substandard extra premiums are available on classes 4 and 6 (Non-Smoker and Smoker). For substandard issues, the substandard extra reinsurance premium (plus any flat extra) is payable for 20 years. After this period, the base reinsurance premium (plus any flat extra) is payable until the end of the premium paying period. The substandard extra annual reinsurance premiums per $1,000 for substandard issues will be the product of the annual single life base reinsurance premiums per $1,000 and the factor for the appropriate rating class. Note that this is These are the total premium single life substandard rates prior to frasierization. These rates are capped at $1,000 per $1,000, including both the base and substandard premium. The minimum after frasierization is $0.13 per $1,000. The factors are as follows: ============================ ================================== -------------- ---------- -------------- ---------- Rating Class Rating Class Factor ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- Factor -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- A 1.40 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- K 10.00 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- B 1.65 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- L 12.50 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- C 1.90 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- M 15.00 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- D 2.25 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- N 17.50 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- E 2.75 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- O 20.00 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- F 3.25 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- P 25.00 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- G 3.75 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- Q 30.00 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- H 4.50 ============================ ==================================R 40.00 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- I 5.00 S 50.00 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- J 7.50 T 50.00 -------------- ---------- -------------- ----------

SUBSTANDARD ANNUAL REINSURANCE PREMIUMS. Substandard extra premiums are available on classes 4 and 6 (Non-Smoker and Smoker). For substandard issues, the substandard extra reinsurance premium (plus any flat extra) is payable for 20 years. After this period, the base reinsurance premium (plus any flat extra) is payable until the end of the premium paying period. The substandard extra annual reinsurance premiums per $1,000 for substandard issues will be the product of the annual single life base reinsurance premiums per $1,000 and the factor for the appropriate rating class. Note that this is These are the total premium single life substandard rates prior to frasierization. These rates are capped at $1,000 per $1,000, including both the base and substandard premium. The minimum after frasierization is $0.13 per $1,000. The factors are as follows: ============== ========== ============== ========== Rating Class Rating Class Factor Factor -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- A 1.40 K 10.00 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- B 1.65 L 12.50 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- C 1.90 M 15.00 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- D 2.25 N 17.50 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- E 2.75 O 20.00 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- F 3.25 P 25.00 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- G 3.75 Q 30.00 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- H 4.50 R 40.00 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- I 5.00 S 50.00 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- J 7.50 T 50.00 ============== ========== ============== ================================== Rating Class Factor ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- A 1.40 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- B 1.65 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- C 1.90 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- D 2.25 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- E 2.75 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- F 3.25 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- G 3.75 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- H 4.50 ============================ ==================================

SUBSTANDARD ANNUAL REINSURANCE PREMIUMS. Substandard extra premiums are available on classes 4 and 6 (Non-Smoker and Smoker). For substandard issues, the substandard extra reinsurance premium (plus any flat extra) is payable for 20 years. After this period, the base reinsurance premium (plus any flat extra) is payable until the end of the premium paying period. The substandard extra annual reinsurance premiums per $1,000 for substandard issues will be the product of the base reinsurance premiums per $1,000 and the factor for the appropriate rating class. Note that this is the total premium per $1,000, including both the base and substandard premium. The factors are as follows: ============================ ==================================== Rating Class Factor ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- --------------------------------------------------------------- A 1.40 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- --------------------------------------------------------------- B 1.65 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- --------------------------------------------------------------- C 1.90 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- --------------------------------------------------------------- D 2.25 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- --------------------------------------------------------------- E 2.75 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- --------------------------------------------------------------- F 3.25 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- --------------------------------------------------------------- G 3.75 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- --------------------------------------------------------------- H 4.50 ============================ ===============================================================

SUBSTANDARD ANNUAL REINSURANCE PREMIUMS. Substandard extra premiums For fully underwritten and simplified issue business, the substandard rating classes A through H are available on all underwriting classes 4 and 6 (Non-Smoker and SmokerSelect Preferred, Preferred, Standard). For substandard issues, the substandard extra reinsurance premium (plus any flat extra) is payable for 20 years. After this period, the base reinsurance premium (plus any flat extra) is payable until the end of the premium paying period. The substandard extra annual reinsurance premiums per $1,000 for substandard issues will be the product of the base reinsurance premiums per $1,000 and the factor for the appropriate rating class. The factor is a product of the 95% substandard adjustment percentage and the substandard mortality multiple for the rating class. Note that this is the total premium per $1,000rate, including both the base and substandard premiumextra premium rates. The factors (after the 95% adjustment mentioned above) applicable for the first 20 policy years are as follows: ============================ ================================== Rating ---------------------- ------------------------ Special Class Factor ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- ---------------------- ------------------------ ---------------------- ------------------------ A 1.40 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- 1.330 ---------------------- ------------------------ ---------------------- ------------------------ B 1.65 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- 1.568 ---------------------- ------------------------ ---------------------- ------------------------ C 1.90 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- 1.805 ---------------------- ------------------------ ---------------------- ------------------------ D 2.25 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- 2.138 ---------------------- ------------------------ ---------------------- ------------------------ E 2.75 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- 2.613 ---------------------- ------------------------ ---------------------- ------------------------ F 3.25 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- 3.088 ---------------------- ------------------------ ---------------------- ------------------------ G 3.75 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- 3.563 ---------------------- ------------------------ ---------------------- ------------------------ H 4.50 ============================ ==================================4.275 ---------------------- ------------------------

SUBSTANDARD ANNUAL REINSURANCE PREMIUMS. Substandard extra premiums are available on classes 4 and 6 (Non-Smoker and Smoker). For substandard issues, the substandard extra reinsurance premium (plus any flat extra) is payable for 20 years. After this period, the base reinsurance premium (plus any flat extra) is payable until the end of the premium paying period. The substandard extra annual reinsurance premiums per $1,000 for substandard issues will be the product of the annual single life base reinsurance premiums per $1,000 and the factor for the appropriate rating class. Note that this is These are the total premium single life substandard rates prior to frasierization. These rates are capped at $1,000 per $1,000, including both the base and substandard premium. The minimum after frasierization is $0.13 per $1,000. The factors are as follows: ============== ========== ============== ========== Rating Class Factor Rating Class Factor -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- A 1.40 K 10.00 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- B 1.65 L 12.50 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- C 1.90 M 15.00 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- D 2.25 N 17.50 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- E 2.75 O 20.00 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- F 3.25 P 25.00 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- G 3.75 Q 30.00 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- H 4.50 R 40.00 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- I 5.00 S 50.00 -------------- ---------- -------------- ---------- -------------- ---------- -------------- ---------- J 7.50 T 50.00 ============== ========== ============== ================================== Rating Class Factor ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- A 1.40 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- B 1.65 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- C 1.90 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- D 2.25 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- E 2.75 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- F 3.25 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- G 3.75 ---------------------------- ---------------------------------- ---------------------------- ---------------------------------- H 4.50 ============================ ==================================