SURVIVORSHIP LIFE RATES:. (a) The single life reinsurance premium rates should be calculated as described in Sections 1 and 2, but using the applicable survivorship life pricing percentage shown in the tables below. (b) The two single life reinsurance premium rates are then “blended” using the Frasierization calculation. (c) Take the larger of [*] or the reinsurance premium rate developed in (a) and (b) above. (d) In all cases, the 1st year reinsurance premium is multiplied by 0% after Frasierization. (e) In the calculation of Frasierized premiums, the premium per 1000 for the older insured will be assumed to be $1000 for any durations from attained age 121 of the older insured through attained age 120 of the younger insured Super Pref. NS [*] [*] [*] Pref. NS [*] [*] [*] Std Plus NS [*] [*] [*] Std NS [*] [*] [*] Pref. Smoker [*] [*] [*] Std Smoker [*] [*] [*] [*] will be used in calculating the substandard NS reinsurance premium rates. [*] will be used in calculating the substandard Smoker reinsurance premium rates. Super Pref. NS [*] [*] [*] Pref. NS [*] [*] [*] Std NS [*] [*] [*] Pref. Smoker [*] [*] [*] Std Smoker [*] [*] [*] Pref. NS [*] [*] [*] Std NS [*] [*] [*] Pref. Smoker [*] [*] [*] Std Smoker [*] [*] [*] [*] will be used in calculating the substandard NS reinsurance premium rates for products with only 5 or 4 risk classes. [*] will be used in calculating the substandard Smoker reinsurance premium rates.
Appears in 1 contract
Samples: Reinsurance Agreement (John Hancock Life Insurance Co of New York Separate Account B)
SURVIVORSHIP LIFE RATES:. (a) The single life reinsurance premium rates should be calculated as described in Sections sections 1 and 2, 2 but using the applicable survivorship life pricing percentage percentages shown in the tables below.
(b) For policies with the Healthy Engagement Rider, apply the HER Discount, as described in section 4 below, to one or both of the single life reinsurance premium rates developed in (a) above. (Note: The HER discount is calculated and applied independently from the flat extras).
(c) The two single life reinsurance premium rates (less discounts, if applicable) are then “blended” using the Frasierization calculation.
(cd) Take the larger of [*] or the reinsurance premium rate developed in (a) and (bc) above.
(de) In all cases, the 1st year reinsurance premium is multiplied by 0% set to zero after Frasierization.
(e) In the calculation of Frasierized premiums, the premium per 1000 for the older insured will be assumed to be $1000 for any durations from attained age 121 of the older insured through attained age 120 of the younger insured . Female/ Male Super Pref. NS Preferred Non-smoker [*] [*] [*] Pref. NS [*] [*] [*] [*] Preferred Non-smoker [*] [*] [*] [*] [*] [*] [*] Std Plus NS Non-smoker [*] [*] [*] Std NS [*] [*] [*] Pref. Smoker [*] Standard Non-smoker [*] [*] [*] Std [*] [*] [*] [*] Substandard Non-smoker [*] [*] [*] [*] [*] [*] [*] Preferred Smoker [*] [*] [*] [*] will be used in calculating the substandard NS reinsurance premium rates. [*] will be used in calculating the substandard Smoker reinsurance premium rates. Super Pref. NS [*] [*] [*] Pref. NS [*] [*] [*] Std NS [*] [*] [*] Pref. Smoker [*] [*] [*] Std Smoker [*] [*] [*] Pref. NS [*] [*] [*] Std NS [*] [*] [*] Pref. Smoker [*] [*] [*] Std Standard Smoker [*] [*] [*] [*] will be used in calculating the substandard NS reinsurance premium rates for products with only 5 or 4 risk classes. [*] will be used in calculating the substandard [*] [*] Substandard Smoker reinsurance premium rates.[*] [*] [*] [*] [*] [*] [*] Female/ Male Super Preferred Non-smoker [*] [*] [*] [*] [*] [*] [*] Preferred Non-smoker [*] [*] [*] [*] [*] [*] [*] Standard Non-smoker [*] [*] [*] [*] [*] [*] [*] Substandard Non-smoker [*] [*] [*] [*] [*] [*] [*] Preferred Smoker [*] [*] [*] [*] [*] [*] [*] Standard Smoker [*] [*] [*] [*] [*] [*] [*] Substandard Smoker [*] [*] [*] [*] [*] [*] [*]
Appears in 1 contract
Samples: Reinsurance Agreement (John Hancock Life Insurance Co (Usa) Separate Account A)
SURVIVORSHIP LIFE RATES:. (a) The single life reinsurance premium rates should be calculated as described in Sections 1 and 2, but using the applicable survivorship life pricing percentage shown in the tables below.
(b) The two single life reinsurance premium rates are then “blended” using the Frasierization calculation.
(c) Take the larger of [*] or the reinsurance premium rate developed in (a) and (b) above.
(d) In all cases, the 1st year reinsurance premium is multiplied by 0% after Frasierization.
(e) In the calculation of Frasierized premiums, the premium per 1000 for the older insured will be assumed to be $1000 for any durations from attained age 121 of the older insured through attained age 120 of the younger insured Super Pref. NS [[ *] [[ *] [[ *] Pref. NS [[ *] [[ *] [[ *] Std Plus NS [[ *] [[ *] [[ *] Std NS [[ *] [[ *] [[ *] Pref. Smoker [[ *] [[ *] [[ *] Std Smoker [[ *] [[ *] [[ *] [*] will be used in calculating the substandard NS reinsurance premium rates. [*] will be used in calculating the substandard Smoker reinsurance premium rates. Super Pref. NS [[ *] [[ *] [[ *] Pref. NS [[ *] [[ *] [[ *] Std NS [[ *] [[ *] [[ *] Pref. Smoker [[ *] [[ *] [[ *] Std Smoker [[ *] [[ *] [[ *] Pref. NS [[ *] [[ *] [[ *] Std NS [[ *] [[ *] [[ *] Pref. Smoker [[ *] [[ *] [[ *] Std Smoker [[ *] [[ *] [[ *] [*] will be used in calculating the substandard NS reinsurance premium rates for products with only 5 or 4 risk classes. [*] will be used in calculating the substandard Smoker reinsurance premium rates.
Appears in 1 contract
Samples: Reinsurance Agreement (John Hancock Life Insurance Co (Usa) Separate Account A)
SURVIVORSHIP LIFE RATES:. (a) The single life reinsurance premium rates should be calculated as described in Sections 1 and 2, but using the applicable survivorship life pricing percentage shown in the tables table below.
(b) The two single life reinsurance premium rates are then “blended” using the Frasierization calculation.
(c) Take the larger of [*] or the reinsurance premium rate developed in (a) and (b) above.
(d) In all cases, the 1st year reinsurance premium is multiplied by 0% set to zero after Frasierization.
. Universal Life (eFor Policies Without Healthy Engagement Rider (HER)) In the calculation of Frasierized premiums, the premium per 1000 for the older insured will be assumed to be $1000 for any durations from attained age 121 of the older insured through attained age 120 of the younger insured – Six Risk Classes Super Pref. Preferred NS [*] [*] [*] Pref. [*] Preferred NS [*] [*] [*] Std [*] Standard Plus NS [*] [*] [*] Std [*] Standard NS [*] [*] [*] Pref. Smoker [*] Preferred SM [*] [*] [*] Std Smoker [*] Standard SM [*] [*] [*] [*] Variable Universal Life (For Policies Without Healthy Engagement Rider (HER)) – Six Risk Classes Super Preferred NS [*] [*] [*] [*] Preferred NS [*] [*] [*] [*] Standard Plus NS [*] [*] [*] [*] Standard NS [*] [*] [*] [*] Preferred SM [*] [*] [*] [*] Standard SM [*] [*] [*] [*] Variable Universal Life (SVL07) (For Policies Without Healthy Engagement Rider (HER)) – Five Risk Classes Super Preferred NS [*] [*] [*] [*] Preferred NS [*] [*] [*] [*] Standard NS [*] [*] [*] [*] Preferred SM [*] [*] [*] [*] Standard SM [*] [*] [*] [*] [*] will be used in calculating the substandard NS reinsurance premium rates. [*] will be used in calculating the substandard Smoker reinsurance premium rates. Super Pref. STERM (For Policies Without Healthy Engagement Rider (HER)) – Four Risk Classes Preferred NS [*] [*] [*] Pref. [*] Standard NS [*] [*] [*] Std [*] Preferred SM [*] [*] [*] [*] Standard SM [*] [*] [*] [*] Universal Life For Policies With Healthy Engagement Rider (HER) – Six Risk Classes Super Preferred NS [*] [*] [*] Pref. Smoker [*] [*] [*] Std Smoker [*] [*] [*] Pref. Preferred NS [*] [*] [*] Std [*] [*] [*] [*] [*] Standard Plus NS [*] [*] [*] Pref. Smoker [*] [*] [*] Std Smoker [*] [*] Standard NS [*] [*] [*] [*] [*] [*] [*] [*] Preferred SM [*] [*] [*] [*] [*] [*] [*] [*] Standard SM [*] [*] [*] [*] [*] [*] [*] [*] Variable Universal Life For Policies With Healthy Engagement Rider (HER) – Six Risk Classes Super Preferred NS [*] [*] [*] [*] [*] [*] [*] [*] Preferred NS [*] [*] [*] [*] [*] [*] [*] [*] Standard Plus NS [*] [*] [*] [*] [*] [*] [*] [*] Standard NS [*] [*] [*] [*] [*] [*] [*] [*] Preferred SM [*] [*] [*] [*] [*] [*] [*] [*] Standard SM [*] [*] [*] [*] [*] [*] [*] [*] [*] will be used in calculating the substandard NS reinsurance premium rates for products with only 5 or 4 risk classesrates. [*] will be used in calculating the substandard Smoker reinsurance premium rates. 0 – 70 $ 30,000,000 $ 30,000,000 $ 10,000,000 $ 5,000,000 71 – 75 $ 25,000,000 $ 25,000,000 $ 10,000,000 $ 5,000,000 76 – 80 $ 20,000,000 $ 20,000,000 $ 10,000,000 $ 5,000,000 81 – 85 $ 10,000,000 $ 10,000,000 $ 2,000,000 $ 0 86 – 90 $ 7,500,000 $ 2,000,000 $ 0 $ 0 If a policy is issued on an aviation risk with an aviation exclusion rider, the above retention limits apply. 0 – 70 $ 15,000,000 $ 15,000,000 Uninsurable Uninsurable 71 – 75 $ 12,500,000 $ 12,500,000 Uninsurable Uninsurable 76 – 80 $ 10,000,000 $ 10,000,000 Uninsurable Uninsurable 81 – 85 Uninsurable Uninsurable Uninsurable Uninsurable 86 – 90 Uninsurable Uninsurable Uninsurable Uninsurable FOREIGN BUSINESS RETENTION LIMITS: Category A and B Super Pref. – 200% $20,000,000 Retention for Singapore is $10,000,000 Retention for Hong Kong and Macau is $15,000,000 Retention for Japan is $10,000,000 Retention for China is $17,000,000 The list of Category A and B Countries can be found under Exhibit B.3 – (Residency Requirements for Foreign Residents Limits). 18 – 80 $10,000,000 $10,000,000 $10,000,000 $5,000,000 0-70 STD-T4 $ 35 $ 30 $ 30 $ 35 $ 30 $ 30 $ 35 $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 0-70 T5-T8 $ 30 $ 25 $ 15 $ 25 $ 20 $ 15 $ 25 $ 20 $ 15 $ 20 $ 12 $ 10 $ 17.5 $ 12 $ 10 $ 10 0-70 T9-T16 $ 30 $ 15 $ 10 $ 25 $ 15 $ 10 $ 25 $ 15 $ 10 $ 15 $ 7 $ 5 $ 12.5 $ 7 $ 5 $ 5 71-75 STD-T4 $ 35 $ 25 $ 25 $ 30 $ 25 $ 25 $ 30 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 71-75 T5-T8 $ 30 $ 20 $ 15 $ 25 $ 25 $ 15 $ 25 $ 20 $ 15 $ 20 $ 12 $ 10 $ 17.5 $ 12 $ 10 $ 10 71-75 T9-T16 $ 30 $ 15 $ 10 $ 25 $ 15 $ 10 $ 25 $ 15 $ 10 $ 15 $ 7 $ 5 $ 12.5 $ 7 $ 5 $ 5 76-80 STD-T4 $ 35 $ 25 $ 25 $ 30 $ 25 $ 25 $ 25 $ 25 $ 25 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 76-80 T5-T8 $ 30 $ 20 $ 15 $ 25 $ 20 $ 15 $ 25 $ 20 $ 15 $ 20 $ 12 $ 10 $ 17.5 $ 12 $ 10 $ 10 76-80 T9-T16 $ 30 $ 15 $ 10 $ 25 $ 15 $ 10 $ 25 $ 15 $ 10 $ 15 $ 7 $ 5 $ 12.5 $ 7 $ 5 $ 5 81-85 STD-T4 $ 30 $ 20 $ 15 $ 25 $ 20 $ 15 $ 20 $ 20 $ 15 $ 12.5 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 81-85 T5-T8 $ 30 $ 12 $ 7 $ 25 $ 12 $ 7 $ 20 $ 12 $ 7 $ 10 $ 4 $ 2 $ 9.5 $ 4 $ 2 $ 2 81-85 T9-T16 $ 30 $ 10 $ 5 $ 25 $ 10 $ 5 $ 20 $ 10 $ 5 $ 10 $ 2 $ 0 $ 7.5 $ 2 $ 0 $ 0 86-90 STD $ 30 $ 17.5 $ 12.5 $ 25 $ 17.5 $ 12.5 $ 20 $ 17.5 $ 12.5 $ 10 $ 9.5 $ 7.5 $ 10 $ 9.5 $ 7.5 $ 7.5 86-90 T1-T4 $ 30 $ 12 $ 7 $ 25 $ 12 $ 7 $ 20 $ 12 $ 7 $ 10 $ 4 $ 2 $ 9.5 $ 0 $ 0 $ 0 86-90 T5-T8 $ 30 $ 10 $ 5 $ 25 $ 10 $ 5 $ 20 $ 10 $ 5 $ 10 $ 2 $ 0 $ 7.5 $ 0 $ 0 $ 0 86-90 T9-T16 $ 30 $ 10 $ 5 $ 25 $ 10 $ 5 $ 20 $ 10 $ 5 $ 10 $ 2 $ 0 $ 7.5 $ 0 $ 0 $ 0 STD means Standard or Better • For purposes of calculating the Company’s retention for purposes of Article II and Exhibit B, amounts held by the Company’s affiliate(s) on a life shall count towards the Company’s Retention Limit. • If the Company’s retention is reduced for discretionary reasons, the Automatic Reinsurance Pool Capacity will be reduced proportionately. • The Single Life and Survivorship Retention for residents of Canada are capped at $10,000,000 for the Company. The Automatic Reinsurance Pool Capacity will be reduced proportionately for any Canadian resident. • For Professional Athletes, players or coaches on a National Hockey League (NHL), National Football League (NFL), National Basketball Association (NBA) or Major League Baseball (MLB) team, the Retention Limit for Single Life and Survivorship is $10,000,000. There is a team cap of $55,000,000 per Team. • Athletes that are not part of the NHL, NFL, NBA, or MLB are eligible for full retention. • Entertainers are eligible for full retention. • For Survivorship products, if one life is uninsurable or exceeds the maximum mortality rating for the insured’s age, then the dollar retention is the single life retention that is available for the other healthy life. • Aviation for survivorship products is reduced by 50% of the retention shown in the grid below; maximum Issue Age 80, rating 200%. The following chart outlines the automatic pool capacity only. The Company’s retention is not included in these amounts. The following limits for the Automatic Reinsurance Pool Capacity apply to policies within the Jumbo Limit. If the Automatic Reinsurance Pool Capacity is exceeded, the Company can submit the whole risk to reinsurers on a Facultative basis, retain any amounts in excess of the Automatic Reinsurance Pool Capacity, or reinsure any such excess amounts under other automatic reinsurance agreements between the Company and its reinsurers. For Single Life / Survivorship Products: 0 – 70 $ 36,000,000 $ 36,000,000 $ 15,000,000 $ 7,500,000 71 – 75 $ 36,000,000 $ 33,600,000 $ 15,000,000 $ 7,500,000 76 – 80 $ 30,000,000 $ 30,000,000 $ 15,000,000 $ 7,500,000 81 – 85 $ 15,000,000 $ 15,000,000 $ 0 $ 0 86 – 90 $ 0 $ 0 $ 0 $ 0 If a policy is issued on an aviation risk with an aviation exclusion rider, the above Automatic Reinsurance Pool Capacity limits apply. 0 – 70 $ 18,000,000 $ 18,000,000 71 – 75 $ 18,000,000 $ 16,800,000 76 – 80 $ 15,000,000 $ 15,000,000 81 – 85 Uninsurable Uninsurable 86 – 90 Uninsurable Uninsurable 20 – 75 $ 15,000,000 The following limits apply to Professional Athletes, which are team players and coaches for the NHL, NFL, NBA or MLB. 0 – 80 $ 15,000,000 $ 15,000,000 $ 15,000,000 $ 7,500,000 • For Professional Athletes: • The Jumbo Limit for these individuals is $65,000,000 to age 80. • Athletes that are not part of the NHL, NFL, NBA or MLB are eligible for full automatic capacity for regular business. • If an individual risk meets all other requirements for automatic reinsurance and is a player or coach on a NHL, NFL, NBA or MLB teams, prior to ceding the risk under this Agreement, the Company must confirm the Reinsurer’s available capacity for that risk. The Company shall (1) notify the Reinsurer’s Chief Underwriter, or designate, of the applicant’s name, date of birth, sport and team affiliation, total insurance in force and to be placed, and face amount required from the Reinsurer; and (2) confirm that the risk has completed an application for insurance. The Reinsurer shall endeavor to inform the Company of its available capacity for the risk within two (2) business days. After the Reinsurer has advised its available capacity, the Company may cede no more than that amount on an automatic basis. In no case shall the Company cede more to the Reinsurance Pool on an automatic basis than the amounts outlined in the above table. • For survivorship products: • The automatic limits are based on the life with the higher available capacity. • The second life can be up to age 90 if the first life is age 85 or younger and insurable. • If the Aviation risk is rated Table 5 or higher, this life will be deemed uninsurable and the Automatic Reinsurance Pool Capacity will be based on the other (i.e. “better”) life. For purposes of this Agreement, the applicable “Automatic Acceptance Limits” are as follows: 0 – 70 $ 6,000,000 $ 6,000,000 $ 2,500,000 $ 1,250,000 71 – 75 $ 6,000,000 $ 5,600,000 $ 2,500,000 $ 1,250,000 76 – 80 $ 5,000,000 $ 5,000,000 $ 2,500,000 $ 1,250,000 81 – 85 $ 2,500,000 $ 2,500,000 $ 0 $ 0 86 – 90 $ 0 $ 0 $ 0 $ 0 If a policy is issued on an aviation risk with an aviation exclusion rider, the above Automatic Acceptance limits apply. 0 – 70 $ 3,000,000 $ 3,000,000 71 – 75 $ 3,000,000 $ 2,800,000 76 – 80 $ 2,500,000 $ 2,500,000 81 – 85 Uninsurable Uninsurable 86 – 90 Uninsurable Uninsurable 20 – 75 $ 2,500,000 The following Automatic Acceptance Limits apply to Professional Athletes, team players and coaches on a NHL, NFL, NBA or MLB Team. 0 – 80 $ 2,500,000 $ 2,500,000 $ 2,500,000 $ 1,250,000 • For Professional Athletes: • The Jumbo Limit for these individuals is $65,000,000 to age 80. • Athletes that are not part of the NHL, NFL, NBA or MLB are eligible for full automatic capacity for regular business. • If an individual risk meets all other requirements for automatic reinsurance and is a player or coach on a NHL, NFL, NBA or MLB teams, prior to ceding the risk under this Agreement, the Company must confirm the Reinsurer’s available capacity for that risk. The Company shall (1) notify the Reinsurer’s Chief Underwriter, or designate, of the applicant’s name, date of birth, sport and team affiliation, total insurance in force and to be placed, and face amount required from the Reinsurer; and (2) confirm that the risk has completed an application for insurance. The Reinsurer shall endeavor to inform the Company of its available capacity for the risk within two (2) business days. After the Reinsurer has advised its available capacity, the Company may cede no more than that amount on an automatic basis. In no case shall the Company cede more to the Reinsurance Pool on an automatic basis than the amounts outlined in the above table. • For survivorship products: • The automatic limits are based on the life with the higher available capacity. • The second life can be up to age 90 if the first life is age 85 or younger and is insurable. • If the Aviation risk is rated Table 5 or worse, this life will be deemed uninsurable and the Automatic Reinsurance Pool Capacity will be based on the other (i.e. “better”) life. For purposes of this Agreement, the applicable “Jumbo Limit” is as follows: 0 – 80 $ 65,000,000 $ 65,000,000 81 – 85* $ 50,000,000 Nil * Note: On Survivorship products, the older insured may be up to issue age 90 if the better life is 85 or younger. 20 – 75 $ 40,000,000 The total amount of insurance shall not exceed the Jumbo Limit outlined in the above table. For the purposes of this Agreement, the total amount of insurance on an individual life shall equal the sum of i. and ii. outlined below:
i. The total amount of insurance in force and pending formal applications with the Company, including ultimate amounts for increasing policies with the Company scheduled at the time the policy is issued, and
ii. The total amount of insurance known by the Company to be in force and pending with formal applications with all other companies. Any amounts of insurance to be replaced, where a fully executed assignment form transferring the ownership to the Company has been received, will not be included in the calculation of the total amount of insurance. Formal applications are any direct life insurance companies’ fully completed applications for life insurance signed by all applicable parties, dated and witnessed. Notwithstanding the preceding, in the event that the Company issues a Covered Policy that causes the Jumbo Limit to be exceeded 1) either unintentionally or as a result of all or a portion of the amount tendered for replacement not being cancelled or terminated for any reason, 2) as a result of a portion of any replaced policy being subsequently reinstated, or 3) if a previously unknown amount of inforce insurance with another company becomes known; and the Company inadvertently cedes the Covered Policy to the Reinsurer automatically under this Agreement (the “Jumbo Break”), the Reinsurer agrees to provide coverage on the Covered Policy up to its Normal Capacity not to exceed its Available Retention on that life where: Normal Capacity is defined as the Reinsurer’s usual apportioned share of the risk under this Agreement Available Retention is defined as the sum of A – B + C, where: A = The Reinsurer’s maximum dollar retention limit as it was set at the time of the Company’s policy issue B = Any amount already retained on that life by the Reinsurer C = Any additional capacity acquired through the Reinsurer’s good faith effort with its retrocessionaires (if applicable) to provide additional coverage for the policy In the event of a Jumbo Break, the Reinsurer will allocate its available capacity on a first-come-first-served basis determined by the effective date of coverage. Any intentional or grossly negligent violations of the Jumbo Limit shall not apply under the terms of this paragraph.
Appears in 1 contract
Samples: Reinsurance Agreement (John Hancock Life Insurance Co (Usa) Separate Account A)
SURVIVORSHIP LIFE RATES:. (a) The single life reinsurance premium rates should be calculated as described in Sections 1 and 2, but using the applicable survivorship life pricing percentage shown in the tables table below.
(b) The two single life reinsurance premium rates are then “blended” using the Frasierization calculation.
(c) Take the larger of [*] or the reinsurance premium rate developed in (a) and (b) above.
(d) In all cases, the 1st year reinsurance premium is multiplied by 0% set to zero after Frasierization.
. Universal Life (eFor Policies Without Healthy Engagement Rider (HER)) In the calculation of Frasierized premiums, the premium per 1000 for the older insured will be assumed to be $1000 for any durations from attained age 121 of the older insured through attained age 120 of the younger insured – Six Risk Classes Super Pref. Preferred NS [*] [*] [*] Pref. [*] Preferred NS [*] [*] [*] Std [*] Standard Plus NS [*] [*] [*] Std [*] Standard NS [*] [*] [*] Pref. Smoker [*] Preferred SM [*] [*] [*] Std Smoker [*] Standard SM [*] [*] [*] [*] Variable Universal Life (For Policies Without Healthy Engagement Rider (HER)) – Six Risk Classes Super Preferred NS [*] [*] [*] [*] Preferred NS [*] [*] [*] [*] Standard Plus NS [*] [*] [*] [*] Standard NS [*] [*] [*] [*] Preferred SM [*] [*] [*] [*] Standard SM [*] [*] [*] [*] Variable Universal Life (SVL07) (For Policies Without Healthy Engagement Rider (HER)) – Five Risk Classes Super Preferred NS [*] [*] [*] [*] Preferred NS [*] [*] [*] [*] Standard NS [*] [*] [*] [*] Preferred SM [*] [*] [*] [*] Standard SM [*] [*] [*] [*] [*] will be used in calculating the substandard NS reinsurance premium rates. [*] will be used in calculating the substandard Smoker reinsurance premium rates. Super Pref. STERM (For Policies Without Healthy Engagement Rider (HER)) – Four Risk Classes Preferred NS [*] [*] [*] Pref. [*] Standard NS [*] [*] [*] Std [*] Preferred SM [*] [*] [*] [*] Standard SM [*] [*] [*] [*] Universal Life For Policies With Healthy Engagement Rider (HER) – Six Risk Classes Super Preferred NS [*] [*] [*] Pref. Smoker [*] [*] [*] Std Smoker [*] [*] [*] Pref. Preferred NS [*] [*] [*] Std [*] [*] [*] [*] [*] Standard Plus NS [*] [*] [*] Pref. Smoker [*] [*] [*] Std Smoker [*] [*] Standard NS [*] [*] [*] [*] [*] [*] [*] [*] Preferred SM [*] [*] [*] [*] [*] [*] [*] [*] Standard SM [*] [*] [*] [*] [*] [*] [*] [*] Variable Universal Life For Policies With Healthy Engagement Rider (HER) – Six Risk Classes Super Preferred NS [*] [*] [*] [*] [*] [*] [*] [*] Preferred NS [*] [*] [*] [*] [*] [*] [*] [*] Standard Plus NS [*] [*] [*] [*] [*] [*] [*] [*] Standard NS [*] [*] [*] [*] [*] [*] [*] [*] Preferred SM [*] [*] [*] [*] [*] [*] [*] [*] Standard SM [*] [*] [*] [*] [*] [*] [*] [*] [*] will be used in calculating the substandard NS reinsurance premium rates for products with only 5 or 4 risk classesrates. [*] will be used in calculating the substandard Smoker reinsurance premium rates. 0 – 70 $ 30,000,000 $ 30,000,000 $ 10,000,000 $ 5,000,000 71 – 75 $ 25,000,000 $ 25,000,000 $ 10,000,000 $ 5,000,000 76 – 80 $ 20,000,000 $ 20,000,000 $ 10,000,000 $ 5,000,000 81 – 85 $ 10,000,000 $ 10,000,000 $ 2,000,000 $ 0 86 – 90 $ 7,500,000 $ 2,000,000 $ 0 $ 0 If a policy is issued on an aviation risk with an aviation exclusion rider, the above retention limits apply. 0 – 70 $ 15,000,000 $ 15,000,000 Uninsurable Uninsurable 71 – 75 $ 12,500,000 $ 12,500,000 Uninsurable Uninsurable 76 – 80 $ 10,000,000 $ 10,000,000 Uninsurable Uninsurable 81 – 85 Uninsurable Uninsurable Uninsurable Uninsurable 86 – 90 Uninsurable Uninsurable Uninsurable Uninsurable FOREIGN BUSINESS RETENTION LIMITS: Category A and B Super Pref. – 200% $ 20,000,000 Retention for Singapore is $10,000,000 Retention for Hong Kong and Macau is $15,000,000 Retention for Japan is $10,000,000 Retention for China is $17,000,000 The list of Category A and B Countries can be found under Exhibit B.3 – (Residency Requirements for Foreign Residents Limits). 18 – 80 $ 10,000,000 $ 10,000,000 $ 10,000,000 $ 5,000,000 0-70 STD-T4 $ 35 $ 30 $ 30 $ 35 $ 30 $ 30 $ 35 $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 0-70 T5-T8 $ 30 $ 25 $ 15 $ 25 $ 20 $ 15 $ 25 $ 20 $ 15 $ 20 $ 12 $ 10 $ 17.5 $ 12 $ 10 $ 10 0-70 T9-T16 $ 30 $ 15 $ 10 $ 25 $ 15 $ 10 $ 25 $ 15 $ 10 $ 15 $ 7 $ 5 $ 12.5 $ 7 $ 5 $ 5 71-75 STD-T4 $ 35 $ 25 $ 25 $ 30 $ 25 $ 25 $ 30 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 71-75 T5-T8 $ 30 $ 20 $ 15 $ 25 $ 25 $ 15 $ 25 $ 20 $ 15 $ 20 $ 12 $ 10 $ 17.5 $ 12 $ 10 $ 10 71-75 T9-T16 $ 30 $ 15 $ 10 $ 25 $ 15 $ 10 $ 25 $ 15 $ 10 $ 15 $ 7 $ 5 $ 12.5 $ 7 $ 5 $ 5 76-80 STD-T4 $ 35 $ 25 $ 25 $ 30 $ 25 $ 25 $ 25 $ 25 $ 25 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 76-80 T5-T8 $ 30 $ 20 $ 15 $ 25 $ 20 $ 15 $ 25 $ 20 $ 15 $ 20 $ 12 $ 10 $ 17.5 $ 12 $ 10 $ 10 76-80 T9-T16 $ 30 $ 15 $ 10 $ 25 $ 15 $ 10 $ 25 $ 15 $ 10 $ 15 $ 7 $ 5 $ 12.5 $ 7 $ 5 $ 5 81-85 STD-T4 $ 30 $ 20 $ 15 $ 25 $ 20 $ 15 $ 20 $ 20 $ 15 $ 12.5 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 81-85 T5-T8 $ 30 $ 12 $ 7 $ 25 $ 12 $ 7 $ 20 $ 12 $ 7 $ 10 $ 4 $ 2 $ 9.5 $ 4 $ 2 $ 2 81-85 T9-T16 $ 30 $ 10 $ 5 $ 25 $ 10 $ 5 $ 20 $ 10 $ 5 $ 10 $ 2 $ 0 $ 7.5 $ 2 $ 0 $ 0 86-90 STD $ 30 $ 17.5 $ 12.5 $ 25 $ 17.5 $ 12.5 $ 20 $ 17.5 $ 12.5 $ 10 $ 9.5 $ 7.5 $ 10 $ 9.5 $ 7.5 $ 7.5 86-90 T1-T4 $ 30 $ 12 $ 7 $ 25 $ 12 $ 7 $ 20 $ 12 $ 7 $ 10 $ 4 $ 2 $ 9.5 $ 0 $ 0 $ 0 86-90 T5-T8 $ 30 $ 10 $ 5 $ 25 $ 10 $ 5 $ 20 $ 10 $ 5 $ 10 $ 2 $ 0 $ 7.5 $ 0 $ 0 $ 0 86-90 T9-T16 $ 30 $ 10 $ 5 $ 25 $ 10 $ 5 $ 20 $ 10 $ 5 $ 10 $ 2 $ 0 $ 7.5 $ 0 $ 0 $ 0 STD means Standard or Better • For purposes of calculating the Company’s retention for purposes of Article II and Exhibit B, amounts held by the Company’s affiliate(s) on a life shall count towards the Company’s Retention Limit. • If the Company’s retention is reduced for discretionary reasons, the Automatic Reinsurance Pool Capacity will be reduced proportionately. • The Single Life and Survivorship Retention for residents of Canada are capped at $10,000,000 for the Company. The Automatic Reinsurance Pool Capacity will be reduced proportionately for any Canadian resident. • For Professional Athletes, players or coaches on a National Hockey League (NHL), National Football League (NFL), National Basketball Association (NBA) or Major League Baseball (MLB) team, the Retention Limit for Single Life and Survivorship is $10,000,000. There is a team cap of $55,000,000 per Team. • Athletes that are not part of the NHL, NFL, NBA, or MLB are eligible for full retention. • Entertainers are eligible for full retention. • For Survivorship products, if one life is uninsurable or exceeds the maximum mortality rating for the insured’s age, then the dollar retention is the single life retention that is available for the other healthy life. • Aviation for survivorship products is reduced by 50% of the retention shown in the grid below; maximum Issue Age 80, rating 200%. The following chart outlines the automatic pool capacity only. The Company’s retention is not included in these amounts. The following limits for the Automatic Reinsurance Pool Capacity apply to policies within the Jumbo Limit. If the Automatic Reinsurance Pool Capacity is exceeded, the Company can submit the whole risk to reinsurers on a Facultative basis, retain any amounts in excess of the Automatic Reinsurance Pool Capacity, or reinsure any such excess amounts under other automatic reinsurance agreements between the Company and its reinsurers. 0 – 70 $ 36,000,000 $ 36,000,000 $ 15,000,000 $ 7,500,000 71 – 75 $ 36,000,000 $ 33,600,000 $ 15,000,000 $ 7,500,000 76 – 80 $ 30,000,000 $ 30,000,000 $ 15,000,000 $ 7,500,000 81 – 85 $ 15,000,000 $ 15,000,000 $ 0 $ 0 86 – 90 $ 0 $ 0 $ 0 $ 0 If a policy is issued on an aviation risk with an aviation exclusion rider, the above Automatic Reinsurance Pool Capacity limits apply. 0 – 70 $ 18,000,000 $ 18,000,000 71 – 75 $ 18,000,000 $ 16,800,000 76 – 80 $ 15,000,000 $ 15,000,000 81 – 85 Uninsurable Uninsurable 86 – 90 Uninsurable Uninsurable 20 – 75 $ 15,000,000 The following limits apply to Professional Athletes, which are team players and coaches for the NHL, NFL, NBA or MLB. 0 – 80 $ 15,000,000 $ 15,000,000 $ 15,000,000 $ 7,500,000 • For Professional Athletes: • The Jumbo Limit for these individuals is $65,000,000 to age 80. • Athletes that are not part of the NHL, NFL, NBA or MLB are eligible for full automatic capacity for regular business. • If an individual risk meets all other requirements for automatic reinsurance and is a player or coach on a NHL, NFL, NBA or MLB teams, prior to ceding the risk under this Agreement, the Company must confirm the Reinsurer’s available capacity for that risk. The Company shall (1) notify the Reinsurer’s Chief Underwriter, or designate, of the applicant’s name, date of birth, sport and team affiliation, total insurance in force and to be placed, and face amount required from the Reinsurer; and (2) confirm that the risk has completed an application for insurance. The Reinsurer shall endeavor to inform the Company of its available capacity for the risk within two (2) business days. After the Reinsurer has advised its available capacity, the Company may cede no more than that amount on an automatic basis. In no case shall the Company cede more to the Reinsurance Pool on an automatic basis than the amounts outlined in the above table. • For survivorship products: • The automatic limits are based on the life with the higher available capacity. • The second life can be up to age 90 if the first life is age 85 or younger and insurable. • If the Aviation risk is rated Table 5 or higher, this life will be deemed uninsurable and the Automatic Reinsurance Pool Capacity will be based on the other (i.e. “better”) life. For purposes of this Agreement, the applicable “Automatic Acceptance Limits” are as follows: 0 – 70 $ 6,000,000 $ 6,000,000 $ 2,500,000 $ 1,250,000 71 – 75 $ 6,000,000 $ 5,600,000 $ 2,500,000 $ 1,250,000 76 – 80 $ 5,000,000 $ 5,000,000 $ 2,500,000 $ 1,250,000 81 – 85 $ 2,500,000 $ 2,500,000 $ 0 $ 0 86 – 90 $ 0 $ 0 $ 0 $ 0 If a policy is issued on an aviation risk with an aviation exclusion rider, the above Automatic Acceptance limits apply. 0 – 70 $ 3,000,000 $ 3,000,000 71 – 75 $ 3,000,000 $ 2,800,000 76 – 80 $ 2,500,000 $ 2,500,000 81 – 85 Uninsurable Uninsurable 86 – 90 Uninsurable Uninsurable 20 – 75 $ 2,500,000 The following Automatic Acceptance Limits apply to Professional Athletes, team players and coaches on a NHL, NFL, NBA or MLB Team. 0 – 80 $ 2,500,000 $ 2,500,000 $ 2,500,000 $ 1,250,000 • For Professional Athletes: • The Jumbo Limit for these individuals is $65,000,000 to age 80. • Athletes that are not part of the NHL, NFL, NBA or MLB are eligible for full automatic capacity for regular business. • If an individual risk meets all other requirements for automatic reinsurance and is a player or coach on a NHL, NFL, NBA or MLB teams, prior to ceding the risk under this Agreement, the Company must confirm the Reinsurer’s available capacity for that risk. The Company shall (1) notify the Reinsurer’s Chief Underwriter, or designate, of the applicant’s name, date of birth, sport and team affiliation, total insurance in force and to be placed, and face amount required from the Reinsurer; and (2) confirm that the risk has completed an application for insurance. The Reinsurer shall endeavor to inform the Company of its available capacity for the risk within two (2) business days. After the Reinsurer has advised its available capacity, the Company may cede no more than that amount on an automatic basis. In no case shall the Company cede more to the Reinsurance Pool on an automatic basis than the amounts outlined in the above table. • For survivorship products: • The automatic limits are based on the life with the higher available capacity. • The second life can be up to age 90 if the first life is age 85 or younger and is insurable. • If the Aviation risk is rated Table 5 or worse, this life will be deemed uninsurable and the Automatic Reinsurance Pool Capacity will be based on the other (i.e. “better”) life. For purposes of this Agreement, the applicable “Jumbo Limit” is as follows: 0 – 80 $ 65,000,000 $ 65,000,000 81 – 85* $ 50,000,000 Nil * Note: On Survivorship products, the older insured may be up to issue age 90 if the better life is 85 or younger. 20 – 75 $ 40,000,000 The total amount of insurance shall not exceed the Jumbo Limit outlined in the above table. For the purposes of this Agreement, the total amount of insurance on an individual life shall equal the sum of i. and ii. outlined below:
i. The total amount of insurance in force and pending formal applications with the Company, including ultimate amounts for increasing policies with the Company scheduled at the time the policy is issued, and
ii. The total amount of insurance known by the Company to be in force and pending with formal applications with all other companies. Any amounts of insurance to be replaced, where a fully executed assignment form transferring the ownership to the Company has been received, will not be included in the calculation of the total amount of insurance. Formal applications are any direct life insurance companies’ fully completed applications for life insurance signed by all applicable parties, dated and witnessed. Notwithstanding the preceding, in the event that the Company issues a Covered Policy that causes the Jumbo Limit to be exceeded 1) either unintentionally or as a result of all or a portion of the amount tendered for replacement not being cancelled or terminated for any reason, 2) as a result of a portion of any replaced policy being subsequently reinstated, or 3) if a previously unknown amount of inforce insurance with another company becomes known; and the Company inadvertently cedes the Covered Policy to the Reinsurer automatically under this Agreement (the “Jumbo Break”), the Reinsurer agrees to provide coverage on the Covered Policy up to its Normal Capacity not to exceed its Available Retention on that life where: Normal Capacity is defined as the Reinsurer’s usual apportioned share of the risk under this Agreement Available Retention is defined as the sum of A – B + C, where: A = The Reinsurer’s maximum dollar retention limit as it was set at the time of the Company’s policy issue B = Any amount already retained on that life by the Reinsurer C = Any additional capacity acquired through the Reinsurer’s good faith effort with its retrocessionaires (if applicable) to provide additional coverage for the policy In the event of a Jumbo Break, the Reinsurer will allocate its available capacity on a first-come-first-served basis determined by the effective date of coverage. Any intentional or grossly negligent violations of the Jumbo Limit shall not apply under the terms of this paragraph.
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Samples: Reinsurance Agreement (John Hancock Life Insurance Co of New York Separate Account B)
