NOVATION AGREEMENT
This Novation Agreement is made effective as of June 30, 2001 among Munich
American Reassurance Company of Atlanta, Georgia (hereafter referred to as
"MARC"), USAA LIFE INSURANCE COMPANY (hereafter referred to -- the "Ceding
Company") and Continental Assurance Company of Chicago, Illinois (hereafter
referred to as "Continental")
WHEREAS Continental, as a result of the sale of its Life Reinsurance Strategic
Business Unit, wishes to transfer and assign the reinsurance contracts and
treaties listed in Schedule A attached hereto (collectively, the (M)Reinsurance
Agreements") as of the Effective Date and afl of Continental's rights, duties,
obligations and liabilities wider each of the Reinsurance Agreements to MARC in
order that Continental will be relieved of all of its rights, duties,
obligations and liabilities under the Reinsurance Agreements; and
WHEREAS the Ceding Company wishes to consent and agree to such transfer and
assignment.
NOW THEREFORE IN CONSIDERATION of the mutual covenants and agreements
hereinafter set forth, the parties hereto agree as follows:
1. Continental hereby transfers and assigns, as of the Effective Date, each of
the Reinsurance Agreements and all of Continental's rights, duties,
obligations and liabilities thereunder to MARC.
2. MARC hereby accepts such transfer and assignment and agrees with each of
Continental and the Ceding Company that MARC shall be bound by all of the
terms and conditions of the Reinsurance Agreements, shall enjoy all of
Continental's rights under and shall perform all of Continental's duties,
obligations and liabilities under the Reinsurance Agreements to the same
extent as if MARC had been the original party to the Reinsurance Agreements
instead of Continental.
3. The Ceding Company
a) consents to the transfer and assignment of the Reinsurance Agreements
and all of Continental's rights, duties, obligations and liabilities
thereunder from Continental to MARC, agrees that MARC shall enjoy and
shall be entitled to enforce all of Continental's rights under the
Reinsurance Agreements and agrees that all of Continental's duties,
obligations and liabilities under the Reinsurance Agreements shall be
performed by MARC as if MARC had been the original party to the
Reinsurance Agreements instead of Continental; and
b) releases and forever discharges Continental from the observance and
performance of any of the terms and conditions of the Reinsurance
Agreements and all of Continental's duties, obligations and liabilities
under the Reinsurance Agreements and from all claims, demands, actions
and causes of action which the Ceding Company ever had, now has or may
hereafter have against Continental in any way arising out of, resulting
from or related to the Reinsurance Agreements or the transfer and
assignment referenced herein.
4. MARC and the Ceding Company hereby ratify and confirm the Reinsurance
Agreements as agreements solely between them and agree that the Reinsurance
Agreements shall continue between them unaltered and in full force and
effect in accordance with its terms and conditions.
5. Each party agrees to do all things necessary to give full effect to this
Novation Agreement.
6. This Novation Agreement shall inure to the benefit of and be binding upon
the parties hereto and their respective successors and assigns.
NOVATION AGREEMENT
IN WITNESS WHEREOF the parties have executed this Novation Agreement as of
June 30, 2001.
FOR: CONTINENTAL ASSURANCE COMPANY OF CHICAGO, ILLINOIS
By: ______________________ Attest: ____________________
Title:______________________ Title:______________________
FOR: MUNICH AMERICAN REASSURANCE COMPANY OF ATLANTA, GEORGIA
By: ______________________ Attest: ____________________
Title:______________________ Title:______________________
FOR: USAA LIFE INSURANCE COMPANY
By: ______________________ Attest: ____________________
Title:______________________ Title:______________________
Schedule A
To the Novation Agreement made as of the JUNE 30, 2001
Between
Munich American Reassurance Company
And
USAA LIFE INSURANCE COMPANY
Contract(s) referred to in the above referenced Novation Agreement
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Can's Company Code Client Agreement # Treaty Effective Date Treaty Description
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K3400 2524 09/01/1997 FACULTATIVE YRT
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K3401 2525 06/01/1998 AUTOMATIC YRT
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