EXHIBIT (i)(2)(c)
ADDENDUM NO. 2
TO
SERVICE AND EXPENSE AGREEMENT
between
AMERICAN HOME ASSURANCE COMPANY
AMERICAN INTERNATIONAL INSURANCE COMPANY
BIRMINGHAM FIRE INSURANCE COMPANY OF PENNSYLVANIA
COMMERCE AND INDUSTRY INSURANCE COMPANY
NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA.
THE INSURANCE COMPANY OF THE STATE OF PENNSYLVANIA
TRANSATLANTIC REINSURANCE COMPANY
and
AMERICAN INTERNATIONAL GROUP, INC.
The Service and Expense Agreement made February 1, 1974 between American
Home Assurance Company, American International Insurance Company, Birmingham
Fire Insurance Camp any of Pennsylvania, Commerce and Industry Insurance
Company, National Union Fire Insurance Company of Pittsburgh, Pa., The
Insurance Company of the State of Pennsylvania, Transatlantic Reinsurance
Company and American International Group, Inc. (the "Agreement") is hereby
amended in the following respects:
1. The title of the Agreement is hereby amended to read in its entirety as
follows:
SERVICE AND EXPENSE AGREEMENT
between
AMERICAN HOME ASSURANCE COMPANY
AMERICAN INTERNATIONAL INSURANCE COMPANY
AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK
BIRMINGHAM FIRE INSURANCE COMPANY OF PENNSYLVANIA
COMMERCE AND INDUSTRY INSURANCE COMPANY
DELAWARE AMERICAN LIFE INSURANCE COMPANY
LIFE INSURANCE COMPANY OF NEW HAMPSHIRE
NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA.
THE INSURANCE COMPANY OF THE STATE OF PENNSYLVANIA
TRANSATLANTIC REINSURANCE COMPANY
and
AMERICAN INTERNATIONAL GROUP, INC.
2. The preamble of the Agreement is hereby amended by adding to the parties
set forth therein which are collectively called the "Companies, the
following: "AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK,
DELAWARE AMERICAN LIFE INSURANCE COMPANY and LIFE INSURANCE COMPANY OF
NEW HAMPSHIRE."
1
3. Paragraph 4 of the Agreement is hereby amended to read in its entirety
as follows:
"4. Notwithstanding anything contained above to the contrary, the basis
upon which charges are computed by AIG's Comptroller's Department or by
the entity furnishing the service or facilities shall be billed to the
Companies in accordance with Regulation 30, or Regulation 33, as
applicable, of the New York Insurance Department and shall not exceed
cost to AIG. AIG will cause the departments responsible for supplying
the services and performing the functions herein specified to make an
analysis at least once during each calendar year of the expenses
incurred by the department and of the percentage thereof allocable to
the Companies."
4. Paragraph 6 of the Agreement is hereby amended to read in its entirety
as follows:
"6. Except as provided below with respect to electronic data processing,
any party may cancel this agreement by giving ninety days written notice
to all the others, provided that this agreement shall automatically
terminate as to any of the Companies, except American International Life
Assurance Company of New York, which ceases to be a subsidiary or
affiliate of AIG. Six months' notice shall be required to cancel this
agreement with respect to electronic data process services provided to
American International Life Assurance Company of New York."
5. A new paragraph shall be added to the Agreement as follows:
"11. American International Life Assurance Company of New York shall
develop standards and guidelines for all services to be furnished to it
under this Agreement which require the exercise of judgement and the
party furnishing such standards and guidelines with respect to such
services."
IN WITNESS WHEREOF, the parties hereto have caused this Addendum to be
executed in New York, New York by their duly authorized representatives this
23rd day of September, 1975.
AMERICAN HOME ASSURANCE COMPANY by: /s/
----------------------------------
Vice President
AMERICAN INTERNATIONAL INSURANCE
COMPANY by: /s/
----------------------------------
Vice President
2
AMERICAN INTERNATIONAL LIFE
ASSURANCE COMPANY OF NEW YORK by: /s/
----------------------------------
Vice President
BIRMINGHAM FIRE INSURANCE COMPANY
OF PENNSYLVANIA by: /s/
----------------------------------
Vice President
COMMERCE AND INDUSTRY INSURANCE
COMPANY by: /s/
----------------------------------
Vice President
DELAWARE AMERICAN LIFE INSURANCE
COMPANY by: /s/
----------------------------------
Vice President
LIFE INSURANCE COMPANY OF NEW
HAMPSHIRE by: /s/
----------------------------------
Vice President
NATIONAL UNION FIRE INSURANCE
COMPANY OF PITTSBURGH, PA. by: /s/
----------------------------------
Vice President
THE INSURANCE COMPANY OF THE
STATE OF PENNSYLVANIA by: /s/
----------------------------------
Vice President
TRANSATLANTIC REINSURANCE COMPANY by: /s/
----------------------------------
Vice President
AMERICAN INTERNATIONAL GROUP, INC. by: /s/
----------------------------------
Vice President & Comptroller
3
