Amendment Number 6 to the Second Amended and Restated Automatic Indemnity Reinsurance Agreement
[CERTAIN PORTIONS OF THIS EXHIBIT CONTAIN CONFIDENTIAL INFORMATION. THE CONFIDENTIAL PORTIONS OF THIS EXHIBIT ARE IDENTIFIED AS [REDACTED] AND HAVE BEEN OMITTED.]
Amendment Number 6
to the
Second Amended and Restated Automatic Indemnity Reinsurance Agreement
This Amendment between The Lincoln National Life Insurance Company of Fort Xxxxx, Indiana (the “Ceding Company”) and Lincoln National Reinsurance Company (Barbados) Limited, a Barbados Corporation (“the Reinsurer”) is effective May 21, 2018.
RECITALS
1. The Ceding Company and the Reinsurer entered into an Automatic Indemnity Reinsurance Agreement effective July 1, 2003, as amended and restated effective November 1, 2013, and as further amended by amendments executed June 9, 2016, October 20, 2016, March 30, 2017, July 15, 2017, and February 20, 2018 (“the Agreement”).
2. Article XVII, Section 8 of this Agreement permits amendments as long as they are made in writing, signed by duly authorized officers of both parties.
3. The Ceding Company and the Reinsurer wish to make such an amendment to add new versions of two of the riders to the Agreement.
AGREEMENT
NOWTHEREFORE, in consideration of these premises and the mutual covenants contained herein, the Ceding Company and the Reinsurer agree to amend the Agreement as follows:
1. Effective May 21, 2018, new charges for Lincoln Lifetime Income Advantage 2.0 (Managed Risk) (and transitioning to i4Life) and i4Life® Advantage with Guaranteed Income Benefit (Managed Risk) shall be added to Schedule C of the Agreement.
2. Effective June 11, 2018, a new version of the 4Later® Select Advantage rider shall be added to Schedule A of the Agreement.
3. The Ceding Company and the Reinsurer agree that Schedules A and C of the Agreement shall be replaced in their entirety with Schedules A and C attached hereto.
All terms, provisions and conditions of this Agreement will continue unchanged except as specifically revised in this Amendment.
In WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representatives.
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LINCOLN NATIONAL REINSURANCE |
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THE LINCOLN NATIONAL LIFE | ||||
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COMPANY (BARBADOS) LIMITED |
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INSURANCE COMPANY | ||||
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By: |
/s/ Xxxxxx Xxxx |
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By: |
/s/ Xxxxxxx Xxxxx | ||
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Name: Xxxxxx Xxxx |
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Name: Xxxxxxx Xxxxx | ||||
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Title: AVP |
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Title: SVP | ||||
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Date: 6/28/18 |
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Date: 6/20/18 | ||||
SCHEDULE A
Reinsurance of Guaranteed Benefits (“GB”)
Effective May 21, 2018
Each contract listed in Schedule B contains one or more GB. GBs which are covered by this Agreement include the following:
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Marketing Name of Benefit |
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Policy Form Nos. |
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Death Benefit Riders |
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Guarantee of Principal Death Benefit Rider* |
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32148 |
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Enhanced Guaranteed Minimum Death Benefit Rider* |
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32149 |
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5% Step-Up Death Benefit Rider* |
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32150 |
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7 Year Ratchet Death Benefit on American Legacy I & II* |
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— |
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Estate Enhancement Death Benefit Rider* |
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32151 |
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Highest Anniversary Death Benefit Rider eff. 1/9/17* |
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AR-593 |
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Guarantee of Principal Death Benefit Rider eff. 1/9/17* |
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ICC16-32148 |
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Guarantee of Principal Death Benefit Rider eff. 1/9/17* |
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32148 (9-16) |
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Earnings Optimizer Death Benefit Rider eff. 11/16/15 |
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AR-590 |
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Lincoln SmartSecurity® Advantage |
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Variable Annuity Rider |
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32793 |
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i4LIFE® Advantage with Guaranteed Income Benefit |
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Variable Annuity Income Rider |
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I4LA |
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Variable Annuity Payment Option Rider |
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I4LA-Q |
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Variable Annuity Payment Option Rider |
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I4LA-NQ |
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Guaranteed Income Benefit |
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GIB |
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Increasing GIB |
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IGIB |
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Annual XXX |
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XXXX |
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Select Guaranteed Income Benefit |
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AR-528 |
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i4LIFE® Advantage with Guaranteed Income Benefit (Managed Risk) eff. 5/21/12 |
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AR-528 |
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4LATER® Advantage |
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Guaranteed Income Later Rider |
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4Later |
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4LATER® Advantage (Managed Risk) eff. 7/2/12 |
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AR-547 (3-12) |
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4LATER® Select Advantage |
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Guaranteed Income Later Rider effective 1/9/17 |
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AR-547 (3-12) |
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Guaranteed Income Later Rider effective 6/11/18 |
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AR-547 (03/18) |
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Lincoln Lifetime IncomeSM Advantage |
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Variable Annuity Living Benefits Rider |
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AR-512 |
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Variable Annuity Living Benefits Rider (LINC Plus)* |
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AR-512P |
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Lincoln Lifetime IncomeSM Advantage 2.0 & |
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Lincoln Lifetime IncomeSM Advantage 2.0 (Managed Risk) eff. 4/2/12 |
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Variable Annuity Living Benefits Rider eff. 4/2/12* |
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AR-529 |
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Variable Annuity Guarantee Income Benefit (NY version) |
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AR-529 |
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Variable Annuity Living Benefits Rider eff. 1/20/15 |
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AR-566 |
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Variable Annuity Living Benefits Rider eff. 2/20/18 |
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AR-607 |
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Lincoln Market Select ® Advantage |
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Variable Annuity Living Benefits Rider eff. 10/5/15 |
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AR-587 |
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Variable Annuity Living Benefits Rider eff. 5/16/16 |
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AR-591 |
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Variable Annuity Guarantee Income Benefit (NY version) eff. 8/29/16 |
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AR-529 |
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Variable Annuity Living Benefits Rider eff. 2/20/18 |
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AR-607 |
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Lincoln Long-Term CareSM Advantage Rider |
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Long-Term Care Coverage Endorsement |
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AE-517 |
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Long-Term Care Benefits Rider |
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AR-518, AR-519 |
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Core Income Benefit — eff. 2/21/17 |
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AR-592 |
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Lincoln Max 6 SelectSM Advantage — eff. 5/22/17 |
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AR-600 |
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* issued by Ceding Company only
SCHEDULE C
PREMIUM RATE SCHEDULE
Effective May 21, 2018
Initial Reinsurance Premium:
The Initial Reinsurance Premium shall equal the Treaty Reserve applicable to each Individual Policy on the date it is first covered by this Agreement. For all business the Ceding Company assumes from Lincoln Life & Annuity of New York, the Initial Reinsurance Premium shall equal the Treaty Reserves less an adjustment reflecting the anticipated future profitability on the business assumed by the Ceding Company effective January 1, 2010. For all business issued by the Ceding Company after the Agreement’s Effective Date, the Initial Premium shall be zero.
Base Reinsurance Premium Rates:
Effective from the Agreement’s Effective Date and the corresponding effective date of any amendment, as appropriate:
[REDACTED]
Reinsurer’s Expense, Profit, and Risk Charge (EPRC):
EPRC shall equal the annual rates shown above, payable monthly in arrears computed in the manner as more fully described below.
Monthly Payment of Reinsurance Premium:
Both the Base Reinsurance Premium and the EPRC are payable in arrears after the end of each calendar month. The monthly payment for all benefit types shall be computed by adding the appropriate Base Reinsurance Premium annual rate to the EPRC annual rate, then dividing the total by twelve and multiplying the result times the end of the month Guaranteed Benefit Amount, the Current Income Base or the Variable Account Value, as applicable.
