REINSURANCE
AGREEMENT
Between
STATE FARM LIFE INSURANCE COMPANY
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
TABLE OF CONTENTS
Page
Reinsurance Coverage 1
Reinsurance Limits 3
Placing Reinsurance in Effect 4
Computation of Reinsurance Premiums 5
Payment of Reinsurance Premiums 6
Settlement of Claims 8
Experience Refunds 9
Premium Tax Reimbursement 10
Policy Changes 10
Reinstatements 10
Expenses 10
Reductions 11
Inspection of Records 11
Increase in Limit of Retention 12
Oversights 13
Arbitration 14
Insolvency 15
Parties to Agreement 16
Execution and Duration of Agreement 17
Insurance Subject to Reinsurance Under This Agreement Appendix I
Net Amount at Risk Definition Appendix II
Retention Limits of the REINSURED Schedule A
Maximum Amounts which the REINSURED may cede Automatically Schedule B
Administrative Forms Schedule C
Reinsurance Premium Rates Schedule D, Parts I
Continuation Reinsurance Premium Rates Schedule D, Part II
R E I N S U R A N C E A G R E E M E N T
between
STATE FARM LIFE INSURANCE COMPANY
of
Bloomington, Illinois,
hereinafter referred to as the "REINSURED," and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
of
Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN."
REINSURANCE COVERAGE
1. On the basis hereinafter stated, the REINSURED'S excess of individual
ordinary Life and Waiver of Premium Disability insurance issued by the REINSURED
on the policies specified in Appendix I shall be reinsured with the LINCOLN
automatically, shall be submitted to the LINCOLN on a facultative basis, or
shall be reinsured with the LINCOLN as continuations; a continuation is a new
policy replacing a policy issued earlier by the REINSURED ("original policy") or
a change in an existing policy issued or made either (a) in compliance with the
terms of the original policy or (b) without the same new underwriting
information the REINSURED would obtain in the absence of the original policy,
without a suicide exclusion period or a contestable period as long as those
contained in new issues by the REINSURED, or without the payment of the same
commissions in the first year that the REINSURED would have paid in the absence
of the original policy.
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2. Subject to the prior approval of the LINCOLN in the case of facultative
reinsurance, the liability of the LINCOLN shall begin simultaneously with that
of the REINSURED. In no event shall the reinsurance be in force and binding
unless the insurance issued directly by the REINSURED is in force and unless the
issuance and delivery of such insurance constituted the doing of business in a
jurisdiction in which the REINSURED was properly licensed.
3. The Life reinsurance under this agreement shall be term insurance for
the amount at risk on the portion of the original insurance which is reinsured
with the LINCOLN. The amount of reinsurance shall be the death benefit provided
by the portion of the original insurance which is reinsured with the LINCOLN.
The amount at risk on a policy shall be determined at the beginning of each
policy year and shall be amended during that year only if there is a change in
the amount of reinsurance on the life arising from a change in the specified
amount under the policy reinsured hereunder. For the second and subsequent
policy years, the REINSURED shall notify the LINCOLN of the amount at risk for
that policy year at least fifteen days before the beginning of that policy year.
The portion reinsured shall be the amount at risk on the policy less the
REINSURED'S retention on the policy.
5. Reinsurance of Disability insurance insurance shall follow the original
forms of the REINSURED.
6. Life reinsurance in amounts less than $50,000 shall not be placed in
effect under this agreement.
7. If the REINSURED issues a policy as a continuation of a policy reinsured
under this agreement, reinsurance of the continuation shall continue with the
LINCOLN. Such reinsurance shall be in effect under the reinsurance agreement
between the REINSURED and the LINCOLN which provides
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reinsurance of the policy form issued as a continuation if there is such an
agreement in effect on the effective date of the continuation; otherwise,
reinsurance shall be in effect under the terms of the agreement.
8. Reinsurance under any one cession shall be terminated at the end of the
year preceding the first year for which the amount at risk on the cession is
less than $5,000. The amount of reinsurance under this agreement shall otherwise
be maintained in force without reduction so long as the amount of insurance
carried by the REINSURED on the life remains in force without reduction, except
as provided in the "PAYMENT OF REINSURANCE PREMIUMS" and "INCREASE IN LIMIT OF
RETENTION" articles.
REINSURANCE LIMITS
1. If the following conditions are met, reinsurance may be ceded
automatically under this agreement in amounts not to exceed those specified in
Schedule B.
(a) The REINSURED shall retain its limit of retention.
(b) The sum of the amount of insurance already in force on that life in
the REINSURED and the amount applied for from the REINSURED on the
current application shall not exceed the sum of the appropriate
automatic limit shown in Schedule B and the REINSURED'S maximum
limit of retention for the mortality class, plan of insurance, and
age at issue on the current application.
(c) The sum of the amount of insurance already in force on the life and
the amount applied for currently, in all companies, shall not
exceed the following amounts.
Ages Life Insurance Waiver of Premium
----- -------------- -----------------
0-65 [omitted] [omitted]
66-75 [omitted] [omitted]
(d) The REINSURED has not made facultative application for reinsurance
of the current application.
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(e) The policy was issued in accordance with the REINSURED'S normal
individual ordinary life underwriting rules and practices.
(f) The policy is not a continuation.
2. Applications which the REINSURED does not care to cede to the LINCOLN
automatically or which may not be so ceded under the terms of this agreement and
which do not arise from continuations shall be submitted for reinsurance on a
facultative basis.
3. Unless additional coverage is provided in Schedule B, the LINCOLN shall
have no liability under facultative applications for reinsurance unless the
LINCOLN has given its final approval of the submission.
4. Continuations shall be reinsured under this agreement only if the
original policy was reinsured with the LINCOLN; the amount of reinsurance under
this agreement shall not exceed the amount of the reinsurance of the original
policy with the LINCOLN immediately prior to the conversion.
PLACING REINSURANCE IN EFFECT
1. When the REINSURED submits a risk to the LINCOLN for reinsurance upon a
facultative basis, a facultative application for such reinsurance shall be made
on a form in substantial accord with Schedule C. Copies of the original
applications, all medical examinations, microscopical reports, inspection
reports, and all other information which the REINSURED may have pertaining to
the insurability of the risk shall accompany the application. Upon receipt of
such application, the LINCOLN shall immediately examine the papers and shall
notify the REINSURED of its underwriting action as possible.
2. To effect reinsurance, the REINSURED shall, within ten working days
after the original policy has been reported delivered and paid for,
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mail to the LINCOLN a reinsurance cession in substantial accord with Schedule C.
The LINCOLN shall send the REINSURED a record of reinsurance ceded in
substantial accord with Schedule C. Upon request, the REINSURED shall furnish
the LINCOLN with copies of any underwriting information in the REINSURED'S
files.
3. All offers of reinsurance made by the LINCOLN under this agreement
shall, unless otherwise terminated by the LINCOLN, automatically terminate on
the earliest of (a) the date the LINCOLN receives notice from the REINSURED of
its acceptance of the offer, (b) the date the LINCOLN receives notice from the
REINSURED of its withdrawal of its application, and (c) the later of (i) the
date 120 days after the date the offer was made by the LINCOLN and (ii) the date
specified in the LINCOLN'S approval of a written request from the REINSURED to
grant an extension of the offer.
COMPUTATION OF REINSURANCE PREMIUMS
1. The premium to be paid to the LINCOLN for Life reinsurance shall be the
sum of:
(a) the appropriate premium rate from the schedule of premiums in
Schedule D applied to the appropriate amount at risk reinsured;
plus
(b) any flat extra premium charged the insured on the face amount
initially reinsured less total allowances in the amount of
[omitted] of any first year permanent flat extra premium and
[omitted] of any renewal flat extra premium.
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2. The portions of the reinsurance premiums described in the above
subparagraphs of the preceding paragraph shall hereinafter be referred to as the
basic premium.
3. The premium charged the REINSURED for increases in reinsurance hereunder
described in paragraph 4 of the "REINSURANCE COVERAGE" article hereof shall be
computed using the age and date of issue of the policy if the increase in face
amount is not subject to approval of the REINSURED and using the age at and date
of the increase if the increase in face amount is subject to the REINSURED'S
approval.
4. For technical reasons relating to the uncertain status of deficiency
reserve requirements by the various state insurance departments, the Life
reinsurance rates cannot be guaranteed for more than one year. On all
reinsurance ceded at these rates, however, the LINCOLN anticipates continuing to
accept premiums on the basis of the rates shown in Schedule D.
5. The premium to be paid the LINCOLN for reinsurance of Supplemental
Benefits shall be as shown in Schedule D.
PAYMENT OF REINSURANCE PREMIUMS
1. The LINCOLN shall send the REINSURED each month a statement in duplicate
showing all outstanding first-year policies for which the LINCOLN'S records have
been completed and a statement in duplicate showing all renewal reinsurance
premiums on reinsurance policies having anniversaries in the preceding month.
2. One copy of each statement received from the LINCOLN shall be returned
to the LINCOLN not later than fifteen days after the statement was received with
notice of any adjustments made necessary by changes in reinsurance during such
month. The REINSURED shall remit with such statement
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the premiums due the LINCOLN as adjusted. Premiums for reinsurance hereunder are
payable at the Home Office of the LINCOLN and shall be paid on an annual basis
without regard to the manner of payment stipulated in the policy issued by the
REINSURED.
2. The payment of reinsurance premiums in accordance with the provisions of
the preceding paragraph shall be a condition precedent to the liability of the
LINCOLN under reinsurance covered by this agreement. In the event that
reinsurance premiums are not paid as provided in the preceding paragraph, the
LINCOLN shall have the right to terminate the reinsurance under all policies
having reinsurance premiums in arrears. If the LINCOLN elects to exercise its
right of termination, it shall give the REINSURED thirty days notice of its
intention to terminate such reinsurance. If all reinsurance premiums in arrears,
including any which may become in arrears during the thirty-day period, are not
paid before the expiration of such period, the LINCOLN shall thereupon be
relieved of future liability under all reinsurance for which premiums remain
unpaid. Policies on which reinsurance premiums subsequently fall due will
automatically terminate if reinsurance premiums are not paid when due as
provided in paragraph 2 of this article. The reinsurance so terminated may be
reinstated at any time within sixty days of the date of termination upon payment
of all reinsurance premiums in arrears; but, in the event of such reinstatement,
the LINCOLN shall have no liability in connection with any claims incurred
between the date of termination and the date of reinstatement of the
reinsurance. The LINCOLN'S right to terminate reinsurance as herein provided
shall be without prejudice to its right to collect premiums for the period
reinsurance was in force prior to the expiration of the thirty-day notice
period.
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SETTLEMENT OF CLAIMS
1. The REINSURED shall give the LINCOLN prompt notice of any claim
submitted on a policy reinsured hereunder and prompt notice of the instigation
of any legal proceedings in connection therewith. Copies of proofs or other
documents bearing on such claim or proceeding shall be furnished to the LINCOLN
when requested.
2. The LINCOLN shall accept the good faith decision of the REINSURED in
settling any claim or suit and shall pay, at its Home Office, its share of net
reinsurance liability upon receiving proper evidence of the REINSURED'S having
settled with the claimant. Payment of net reinsurance liability on account of
death or dismemberment shall be made in one lump sum.
3. If the REINSURED should contest or compromise any claim or proceeding,
and the amount of net liability thereby be reduced, the LINCOLN'S reinsurance
liability shall be reduced in the proportion that the net liability of the
LINCOLN bore to the sum of the retained net liability of the REINSURED and the
net liability of other reinsurers existing as of the occurrence of the claim.
4. Any unusual expenses incurred by the REINSURED in defending or
investigating a claim for policy liability or in taking up or rescinding a
policy reinsured hereunder shall be participated in by the LINCOLN in the same
proportion as described in paragraph 3, above.
5. In no event shall the following categories of expenses or liabilities be
considered, for purposes of this agreement, as "unusual expenses" or items of
"net reinsurance liability:"
(a) routine investigative or administrative expenses;
(b) expenses incurred in connection with a dispute or contest arising out
of conflicting claims of entitlement to policy proceeds or benefits
which the REINSURED admits are payable;
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(c) expenses, fees, settlements, or judgments arising out of or in
connection with claims against the REINSURED for punitive or exemplary
damages;
(d) expenses, fees, settlements, or judgments arising out of or in
connection with claims made against the REINSURED and based on alleged
or actual bad faith, failure to exercise good faith, or tortious
conduct.
6. For purposes of this agreement, penalties, attorney's fees, and interest
imposed automatically by statute against the REINSURED and arising solely out of
a judgment being rendered against the REINSURED in a suit for policy benefits
reinsured hereunder shall be considered "unusual expenses."
7. In the event that the amount of insurance provided by a policy or
policies reinsured hereunder is increased or reduced because of a misstatement
of age or sex established after the death of the insured, the net reinsurance
liability of the LINCOLN shall increase or reduce in the proportion that the net
reinsurance liability of the LINCOLN bore to the sum of the net retained
liability of the REINSURED and the net liability of other reinsurers immediately
prior to the discovery of such misstatement of age or sex. Reinsurance policies
in force with the LINCOLN shall be reformed on the basis of the adjusted
amounts, using premiums and reserves applicable to the correct age and sex. Any
adjustment in reinsurance premiums shall be made without interest.
8. The LINCOLN shall refund to the REINSURED any reinsurance premiums,
without interest, unearned as of the date of death of the life reinsured
hereunder.
EXPERIENCE REFUNDS
Reinsurance hereunder shall not be considered for experience refunds.
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PREMIUM TAX REIMBURSEMENT
When the LINCOLN is not required to pay state premium taxes upon
reinsurance premiums received from the REINSURED, it shall reimburse the
REINSURED for any such taxes the latter may be required to pay with respect to
that part of the premiums received under the REINSURED'S original policies which
is remitted to the LINCOLN as reinsurance premiums.
POLICY CHANGES
If a change is made in the policy issued by the REINSURED to the insured
which affects reinsurance hereunder, the REINSURED shall immediately notify the
LINCOLN of such change.
REINSTATEMENTS
If a policy reinsured hereunder lapses for nonpayment of premium and is
reinstated in accordance with its terms and the rules of the REINSURED, the
LINCOLN shall automatically reinstate its reinsurance under such policy. The
REINSURED shall pay the LINCOLN all reinsurance premiums in arrears in
connection with the reinstatement with interest at the same rate and in the same
manner as the REINSURED received under its policy.
EXPENSES
The REINSURED shall bear the expense of all medical examinations,
inspection fees, and other charges incurred in connection with the original
policy.
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REDUCTIONS
1. Except as otherwise provided in paragraph 3 of the "REINSURANCE
COVERAGE" article hereof, if a portion of the insurance issued by the REINSURED
on a life reinsured hereunder is terminated, reinsurance on that life hereunder
shall be reduced as hereinafter provided to restore, as far as possible, the
retention level of the REINSURED on the risk, provided, however, that the
REINSURED shall not assume on any policy being adjusted as provided in this
article an amount of insurance in excess of the higher of, for the retention
category of that policy, (a) its retention limit at the time of issue of that
policy and (b) the retention limit of that policy as already adjusted by the
provisions of the "INCREASE IN LIMIT OF RETENTION" article. The reduction in
reinsurance shall first be applied to the reinsurance, if any, of the specific
policy under which insurance terminated. The reinsurance of the LINCOLN shall be
reduced by an amount which is the same proportion of the amount of reduction so
applied as the reinsurance of the LINCOLN on the policy bore to the total
reinsurance of the policy. The balance, if any, of the reduction shall be
applied to reinsurance of other policies on the life, the further reduction, if
any, in the reinsurance of the LINCOLN again being determined on a proportional
basis.
2. The LINCOLN shall return to the REINSURED any basic life reinsurance
premiums and any reinsurance premiums for Supplemental benefits, without
interest thereon, paid to the LINCOLN for any period beyond the date of
reduction of reinsurance hereunder.
INSPECTION OF RECORDS
The LINCOLN shall have the right at any reasonable time to inspect, at the
office of the REINSURED, all books and documents relating to the reinsurance
under this agreement.
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INCREASE IN LIMIT OF RETENTION
1. The REINSURED may increase its limit of retention and may elect, subject
to the other provisions of this article, to: (a) continue unchanged reinsurance
then in force under this agreement; (b) make reductions in both standard and
substandard reinsurance then in force under this agreement; or (c) make
reductions in standard reinsurance then in force under this agreement. The
increased limit of retention shall be effective with respect to new reinsurance
on the date specified by the REINSURED subsequent to written notice to the
LINCOLN. Such written notice shall specify the new limit of retention, the
effective date thereof, and the election permitted by the first sentence of this
paragraph. If the REINSURED makes election (b) or (c), the amount of reinsurance
shall be reduced, except as hereinafter provided, to the excess, if any, over
the REINSURED'S new limit of retention.
2. No reduction shall be made in the amount of any reinsurance policy
unless the REINSURED retained its maximum limit of retention for the plan, age,
and mortality classification at the time the policy was issued, nor shall
reductions be made unless held by the REINSURED at its own risk without benefit
of any proportional or nonproportional reinsurance other than catastrophe
accident reinsurance. No reduction shall be made in any class of reinsurance
fully reinsured. No reduction shall be made in any Supplemental Benefits
reinsured on a Life reinsurance cession unless the LINCOLN reinsurance is also
being reduced as described hereunder. The plan, age, and mortality
classification at issue shall be used to determine the REINSURED'S new retention
on any life on which reinsurance policies are reduced in accordance with the
provisions of this article.
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3. The reduction in each reinsurance policy shall be effective upon the
reinsurance renewal date of that policy first following the effective date of
the increased limit of retention or upon the tenth reinsurance renewal date of
the reinsurance policy, if later. If there is reinsurance in other reinsurers
on a life on whom a reinsurance policy will be reduced hereunder, the LINCOLN
shall share in the reduction in the proportion that the amount of reinsurance of
the LINCOLN on the life bore to the amount of reinsurance of other reinsurers on
the life.
4. In the event the REINSURED overlooks any reduction in the amount of a
reinsurance policy which should have been made on account of an increase in the
REINSURED'S limit of retention, the acceptance by the LINCOLN of reinsurance
premiums under such circumstances and after the effective date of the reduction
shall not constitute or determine a liability on the part of the LINCOLN for
such reinsurance. The LINCOLN shall be liable only for a refund of premiums so
received, without interest.
OVERSIGHTS
It is understood and agreed that, if failure to comply with any terms of
this agreement is shown to be unintentional and the result of misunderstanding
or oversight on the part of either the REINSURED or the LINCOLN, both the
REINSURED and the LINCOLN shall be restored to the positions they would have
occupied had no such misunderstanding or oversight occurred.
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ARBITRATION
1. It is the intention of the REINSURED and the LINCOLN that the customs
and practices of the life insurance and life reinsurance industry shall be given
full effect in the operation and interpretation of this agreement. The parties
agree to act in all things with the highest good faith. If the REINSURED or the
LINCOLN cannot mutually resolve a dispute which arises out of or relates to this
agreement, however, the dispute shall be decided through arbitration. The
arbitrators shall reach their decision from the standpoint of equity and the
customs and practices of the life insurance and life reinsurance industry rather
than solely from the standpoint of a strict interpretation of the applicable
substantive and procedural law.
2. To initiate arbitration, either the REINSURED or the LINCOLN shall
notify the other party in writing of its desire to arbitrate, stating the nature
of its dispute and the remedy sought. The party to which the notice is sent
shall respond to the notification in writing within ten (10) days of its
receipt. At that time, the party also shall assert any dispute it may have which
arises out of or relates to this agreement.
3. The arbitration hearing shall be before a panel of three arbitrators,
each of whom must be present or former officers of life insurance or life
reinsurance companies other than the REINSURED or the LINCOLN or either's
affiliates. The REINSURED and the LINCOLN shall each appoint one arbitrator by
written notification to the other party within twenty-five (25) days of the date
of the mailing of the notification initiating the arbitration. These two
arbitrators shall then select the third arbitrator within fourteen (14)
additional days of the date of the mailing of the notification initiating the
arbitration. Should either the REINSURED or the LINCOLN fail to appoint an
arbitrator, or should the two arbitrators be unable to agree upon the choice
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of a third arbitrator, such appointment shall be left to the president of the
American Council of Life Insurance or of its successor organization. Once
chosen, the arbitrators are empowered to decide all substantive and procedural
issues by a majority of votes.
4. The arbitration hearing shall be held on the date fixed by the
arbitrators in the city in which the responding party's home office is located.
In no event shall this date be later than six months after the appointment of
the third arbitrator. The arbitrators shall establish prearbitration procedures
as warranted by the facts and issues of the particular case. At least ten (10)
days prior to the arbitration hearing, each party shall provide the other party
and the arbitrators with a detailed statement of the facts and arguments it will
present at the arbitration hearing. The arbitrators may consider any relevant
evidence; they shall give the evidence such weight as they deem it entitled to
after consideration of any objections raised concerning it. The party initiating
the arbitration shall have the burden of proving its case by a preponderance of
the evidence. Each party may examine any witnesses who testify at the
arbitration hearing. Within twenty (20) days after the end of the arbitration
hearing, the arbitrators shall issue a written decision, from which there shall
be no appeal and which any court having jurisdiction of the subject matter and
the parties may reduce to judgment. In their decision, the arbitrators shall
apportion the costs of arbitration, which shall include but not be limited to
their own fees and expenses, as they deem appropriate.
INSOLVENCY
1. In the event of the insolvency of the REINSURED, all reinsurance shall
be payable directly to the liquidator, receiver, or statutory successor of said
REINSURED, without diminution because of the insolvency of the REINSURED.
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2. In the event of insolvency of the REINSURED, the liquidator, receiver,
or statutory successor shall give the LINCOLN written notice of the pendency of
a claim on a policy reinsured within a reasonable time after such claim is filed
in the insolvency proceeding. During the pendency of any such claim, the LINCOLN
may investigate such claim and interpose, in the name of the REINSURED (its
liquidator, receiver, or statutory successor), but at its own expense, in the
proceeding where such claim is to be adjudicated, any defense or defenses which
the LINCOLN may deem available to the REINSURED or its liquidator, receiver, or
statutory successor.
3. The expense thus incurred by the LINCOLN shall be chargeable, subject to
court approval, against the REINSURED as part of the expense of liquidation to
the extent of a proportionate share of the benefit which may accrue to the
REINSURED solely as a result of the defense undertaken by the LINCOLN. Where two
or more reinsurers are participating in the same claim and a majority in
interest elect to interpose a defense or defenses to any such claim, the expense
shall be apportioned in accordance with the terms of the reinsurance agreement
as though such expense had been incurred by the REINSURED.
PARTIES TO AGREEMENT
This is an agreement for indemnity reinsurance solely between the REINSURED
and the LINCOLN. The acceptance of reinsurance hereunder shall not create any
right or legal relation whatever between the LINCOLN and the insured or the
beneficiary under any policy reinsured hereunder.
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EXECUTION AND DURATION OF AGREEMENT
The provisions of this reinsurance agreement shall apply with respect to
policies issued by the REINSURED on and after the first day of January, 1984,
but in no event shall this agreement become effective unless and until it has
been duly executed by two officers of the LINCOLN at its Home Office in Fort
Xxxxx, Indiana. This agreement shall be unlimited as to its duration but may be
terminated at any time, insofar as it pertains to the handling of new
reinsurance, thereafter, by either party giving three months' notice of
termination in writing. The LINCOLN shall continue to accept reinsurance during
the three months aforesaid and shall remain liable on all reinsurance granted
under this agreement until the termination or expiry of the insurance reinsured.
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IN WITNESS WHEREOF the said
STATE FARM LIFE INSURANCE COMPANY
of
Bloomington, Illinois,
and the said
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
of
Fort Xxxxx, Indiana,
have by their respective officers executed and delivered these presents in
duplicate on the dates shown below.
STATE FARM LIFE INSURANCE COMPANY
By /s/ Illegible By /s/ Illegible
----------------------------------- ---------------------------------
Executive Vice President Vice President
Date 5-11-84 Date 5-11-84
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
By /s/ Illegible By /s/ Illegible
----------------------------------- ---------------------------------
Second Vice President Assistant Secretary
Date MAY 29, 1984 Date May 23, 1984
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APPENDIX I
Insurance Subject to Reinsurance Under This Agreement
The REINSURED'S issues of the following policy and rider forms except those
issued as continuations of policies or portions of policies not reinsured with
the LINCOLN:
Universal Life Plan
APPENDIX II
Net Amount at Risk Definition
The amount at risk shall be determined as the face amount divided by the
appropriate monthly interest factor minus the quantity (A + B - C) where:
A = the cash value at the end of the previous month
B = any net premium collected at the beginning of the current month
C = any applicable monthly expense charge including charges for all
riders (Accidental Death, Additional insured's, Children's Term
Rider, Guaranteed Insurability Option) with the exception of
Waiver of Monthly Deduction Benefit Rider.
SCHEDULE A
Retention Limits of the REINSURED
Life
Ages Standard-Table 6 Over Table 6
---- ---------------- ------------
All [omitted] [omitted]
The above retention limits may be exceeded by as much as $50,000 to avoid
reinsurance.
For cessions with flat extra premiums, the average flat extra for the first five
years shall be determined, and table ratings shall be increased by one table for
each full $2.00 of such average flat extra.
Waiver of Premium Disability
[omitted]
SCHEDULE B
Maximum Amounts which the REINSURED may cede Automatically
Life
Ages Standard-Table 6 Tables 7-16 Over Table 16
------- ---------------- ----------- -------------
0-70 [omitted] [omitted] [omitted]
Over 70 [omitted] [omitted] [omitted]
Waiver of Premium Disability
The REINSURED may cede automatically Waiver of Premium Disability reinsurance in
amount applicable to the amount of life reinsurance ceded automatically not to
exceed the following:
Ages Standard-Table 6 Over Table 6
------- ---------------- ------------
0-44 [omitted] [omitted]
45-65 [omitted] [omitted]
Over 65 [omitted] [omitted]
SCHEDULE B (Continued)
In addition to the automatic coverage otherwise provided hereunder, if the
REINSURED shall become liable under a conditional receipt for a death claim of
an amount which, together with the amount retained by the REINSURED under
previously-issued policies, if any, exceeds its own limit of retention
applicable to the mortality class, plan of insurance, and age at issue for which
a premium was collected, the LINCOLN shall accept reinsurance of such excess
automatically in an amount not to exceed $250,000, less such amount, if any, as
specified in the following sentence. If the conditional receipt issued by the
REINSURED, when setting a limit on the amount of insurance that may become
effective prior to delivery of the policy, includes insurance issued by the
REINSURED on the life in such limit, then any life or accidental death insurance
in force on the life in the REINSURED shall be subtracted from the amount
previously specified in order to determine the limit of LINCOLN'S liability for
such excess.
This additional automatic coverage shall apply to insurance which is
covered under this agreement (as specified in paragraph 1 of the "REINSURANCE
COVERAGE" article) but which does not meet all the conditions outlined in
paragraph 2 of the "AUTOMATIC AND FACULTATIVE REINSURANCE" article. In any case,
this additional reinsurance shall terminate when facultative reinsurance is
completed.
The REINSURED shall submit copies of its conditional receipt to the LINCOLN
and shall notify the LINCOLN immediately of any change therein.
SCHEDULE C
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[ ] AUTOMATIC [ ] RPR AUTOMATIC NOTIFICATION or FACULIATIVE APPLICATION TO: [LOGO]LINCOLN NATIONAL LIFE
___________________________
___________________________
[ ] FACULTATIVE [ ] COINSURANCE
-----------------
------------------------------------------------------------------ STATE OF -------------------------------------------
INSURED'S NAME SEX BIRTH DATE BIRTH RESIDENCE ORIGINAL PLAN(S)
------------------------------------------------------------------------------------------------------------------------------
JOINT INSURED SEX BIRTH DATE
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
LIFE
BASE PLAN TERM RIDER DIS ADB [omitted]
--------- ---------- ---------- ---------- ---------
PREVIOUS IN FORCE $ $ $ $
-------- --------- --------- ---------
[omitted]
---------
PREVIOUS RETAINED
-------- --------- --------- ---------
[omitted]
ISSUED THIS POLICY ---------
-------- --------- --------- ---------
[omitted]
[ ]
RETAINED THIS POLICY
-------- --------- --------- --------- [omitted]
DATING, IF SUBSTANDARD
-------- --------- --------- ---------
------------------------------------------------------
REINSURED THIS CESSION
-------- --------- --------- --------- CEDING COMPANY
---------------------------------------------------------------------
DATE- AT - BY -
------------------------------------------------------------------------------------------------------------------------------
INSTRUCTIONS:
1. Submit Part 1 when making Facultative Application or Preliminary
Notification on Automatic cases.
2. Submit Part 2 when making Formal Cession of Reinsurance to Lincoln National
(new business or amended cession) or withdrawing Facultative Application.
3. Retain Part 3 for your records.
4. On RPR cases, please furnish the Disability Premium per unit from your rate
book on Parts 2-3.
SCHEDULE C
------------------------------------------------------------------------------------------------------------------------------------
[ ] AUTOMATIC [ ] RPR [ ] NEW BUSINESS FORMAL CESSION TO: [LOGO] LINCOLN NATIONAL LIFE
____________________________
____________________________
[ ] FACULTATIVE [ ] COINSURANCE [ ] AMENDED X.XX POLICY NO -
-------------------
------------------------------------------------- STATE OF ----------------------------------------------------------------
INSURED'S NAME SEX BIRTH DATE BIRTH RESIDENCE ORIGINAL PLAN(S) ORIGINAL POLICY NO
------------------------------------------------------------------------------------------------------------------------------------
______________
JOINT INSURED SEX BIRTH DATE ISSUE DATE SHORT TERM FROM DATE BOOKED ISSUE A()F RESERVE_______
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
LIFE
BASE PLAN TERM RIDER DIS ADB
--------- ---------- ---------- ---------- [Omitted]
PREVIOUS IN FORCE $ $ $ $
-------- --------- --------- --------- [Omitted]
PREVIOUS RETAINED
-------- --------- --------- --------- [Omitted]
ISSUED THIS POLICY
-------- --------- --------- --------- [Omitted]
RETAINED THIS POLICY
-------- --------- --------- --------- [Omitted]
RATING, IF SUBSTANDARD
-------- --------- --------- ---------
--------------------------------------------------------
REINSURED THIS CESSION
-------- --------- --------- ---------
------------------------------------------------------------------------- CEDING COMPANY
DATE - DATE COMPLETED - AT - BY -
------------------------------------------------------------------------------------------------------------------------------------
____ ___ ___________ ___________ ___________ ___________ ________ ________ _____ ___________ _____ ___________
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
REMARKS: WITHDRAWN REASON
[ ] APPLICATION FILED INCOMPLETE
[ ] AMOUNT DELIVERED WITHIN __________
[ ] POLICY NOT DELIVERED
[ ] PLACED ELSEWHERE
SCHEDULE C
------------------------------------------------------------------------------------------------------------------------------
LM POLICY NO CO. NO ORIGINAL POLICY NO
-----------------------------------------------------------------------------------------------------------------------------
INSURED'S NAME SEX BIRTH DATE RESIDENT STATE ISSUE DATE
-- --
-----------------------------------------------------------------------------------------------------------------------------
JOINT INSURED SEX BIRTH DATE BONUS RECAPTURE
-- --
-----------------------------------------------------------------------------------------------------------------------------
REINSURANCE LIFE DIS ADB ORIGINAL PLAN
THIS CESSION
---------------------------------------------------------------------------
CEDING COMPANY STATE
--
-----------------------------------------------------------------------------------------------------------------------------
POLICY ACT
YEAR
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
RECORD OF REINSURANCE CEDED TO:
Form 18242
[LOGO] LINCOLN NATIONAL LIFE THE LINCOLN
The Lincoln National Life Insurance Company NATIONAL LIFE INSURANCE
COMPANY
BY /s/ Illegible
-------------------------
SECOND VICE PRESIDENT
DATE:
--------------
-----------------------------------------------------------------------------------------------------------------------------
SCHEDULE D, PART I
Reinsurance Premium Rates
Fully-Underwritten Issues
Standard Risks
The monthly reinsurance premium for the first $5,000,000 of reinsurance on any
one life shall be the attached cost of insurance rates effective January 1, 1984
charged the insured per thousand of the net amount at risk times the following
percentages:
Policy Year
Cessions Smoking Status 1 2-10 11+
------------- -------------- --- ----------- ---
Automatic and
Non-Shopped
Facultative* Nonsmoker
Ages 0-49
50+ [Omitted]
Smoker
Ages 0-49
50+
Policy Year
Cessions Smoking Status 1 2-10 11+
------------- -------------- --- ----------- ---
Shopped
Facultative** Nonsmoker
Ages 0-49
50+ [Omitted]
Smoker
Ages 0-49
50+
* Non-Shopped facultative cessions shall be defined as policies submitted to
the LINCOLN on a facultative basis and not submitted to any other reinsurer
and the REINSURED retains its maximum limit of retention for the plan, age,
and mortality classification at the time of issue.
** Shopped facultative cessions shall be defined as policies submitted to any
other reinsurer with the REINSURED having the option to retain less than
its maximum limit of retention for the plan, age, and mortality
classification at the time of issue.
SCHEDULE D, PART I (Continued)
Substandard Risks
Substandard table extra premiums shall be the number of tables assessed the risk
times 25% of the attached appropriate rates times the above percentages.
Continuations to Issues Reinsured Hereunder
The premium rates for new policies reinsured under this agreement issued as
continuations and in compliance with the terms of the original policy shall be
determined by using the original issue age and attained duration, unless the
agreement governing the original policy specifies otherwise. For purposes of
calculating the reinsurance premium for other policies reinsured under this
agreement as continuations, the date of issue of the continuation policy shall
be considered the date of the original policy.
Continuations from Issues Reinsured Hereunder
The reinsurance premium shall be as described in the agreement which covers the
new policy based on the original issue age and attained duration. If no such
agreement is in effect between the LINCOLN and the REINSURED, reinsurance shall
continue hereunder using the premium rates described in Schedule D, Part II.
SCHEDULE D, PART I (Continued)
Reinsurance ceded to the LINCOLN in excess of $5,000,000 per life shall be ceded
under the Risk Premium Reinsurance Agreement between the REINSURED and the
LINCOLN effective September 1, 1974, using the appropriate premiums thereof and
labeled "Q6M3, XXXXXXXXX," "X0, XXXXXXX," "X0X0, AGGREGATE," and "M4,
SUBSTANDARD EXTRAS."
Waiver of Premium Disability and Payor Benefits
The premium which the REINSURED charges the insured on the amount reinsured less
total allowances of [Omitted] first year and [Omitted] in renewal years.
BASE POLICY AND ADDITIONAL INSURED'S RIDER
STANDARD MONTHLY DEDUCTIONS
CURRENT
-------------------------------
REGULAR NONSMOKER MAXIMUM
ATTAINED -------------- -------------- --------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ----- ------ ----- ------ ----- ------
[Omitted]
BASE POLICY AND ADDITIONAL INSURED'S RIDER
STANDARD MONTHLY DEDUCTIONS
CURRENT
-------------------------------
REGULAR NONSMOKER MAXIMUM
ATTAINED -------------- -------------- --------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ----- ------ ----- ------ ----- ------
[Omitted]
TABLE ONE TOTAL MONTHLY DEDUCTIONS
BASE POLICY AND ADDITIONAL INSURED'S RIDER
CURRENT
-------------------------------
REGULAR NONSMOKER MAXIMUM
ATTAINED -------------- -------------- --------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ----- ------ ----- ------ ----- ------
[Omitted]
TABLE ONE TOTAL MONTHLY DEDUCTIONS
BASE POLICY AND ADDITIONAL INSURED'S RIDER
CURRENT
-------------------------------
REGULAR NONSMOKER MAXIMUM
ATTAINED -------------- -------------- --------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ----- ------ ----- ------ ----- ------
[Omitted]
MINIMUM MONTHLY RATES PER $1000 OR PER UNIT
AGE BASE AD GID WMD AI CTR
--- ---- ---- ---- ----- ---- ----
[Omitted]
MINIMUM MONTHLY RATES PER $1000 OR PER UNIT
AGE BASE AD GID WMD AI CTR
--- ---- ---- ---- ----- ---- ----
[Omitted]
SCHEDULE D, PART II
Continuation Reinsurance Premium Rates
The reinsurance premium of continuation policies not covered under a reinsurance
agreement between the REINSURED and the LINCOLN shall continue using the
following percentages of the SELECT 100, non-refunding Reinsurance Premium Rates
effective January 1, 1978:
[omitted]
AMENDMENT
to the Risk Premium Reinsurance Agreement between the
STATE FARM LIFE INSURANCE COMPANY of Bloomington, Illinois,
hereinafter referred to as the "REINSURED,"
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY of Fort Xxxxx, Indiana, hereinafter
referred to as the "LINCOLN,"
effective January 1, 1984.
It is hereby agreed that the Substandard table extra premiums on Schedule
D, Part I (Continued) shall be the following multiples of the appropriate Table
1 premiums times the percentages shown under Standard Risks on Schedule D, Part
I.
Table Multiple of Table 1
----- -------------------
1
2
3
4
5 [Omitted]
6
8
10
12
16
The reinsurance premium rate for continuations shall be as described under
the above-mentioned reinsurance agreement, for purposes of determining the
appropriate policy fee only, a continuation shall be considered a renewal issue
if the REINSURED has paid the LINCOLN a first-year policy fee on reinsurance of
the original policy and as a new issue if the REINSURED has not paid the LINCOLN
a first-year policy fee on reinsurance of the original policy.
Revision No. 1
It is expressly understood and agreed that the provisions of this amendment
shall be subject to all the terms and conditions of the reinsurance agreement of
which this amendment is a part which do not conflict with the terms hereof.
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
STATE FARM LIFE INSURANCE COMPANY
By /s/ Illegible By /s/ Illegible
----------------------------------- ---------------------------------
Executive Vice President Vice President and Actuary
Date 8/30/85 Date 8/29/85
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
By /s/ Illegible By /s/ Illegible
----------------------------------- ---------------------------------
Vice President Assistant Secretary
Date September 17, 1985 Date 9-10-85
AMENDMENT
to the Risk Premium Reinsurance Agreement (the "Agreement")
effective January 1, 1984, between
STATE FARM LIFE INSURANCE COMPANY of Bloomington, Illinois,
hereinafter referred to as the "REINSURED,"
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY of Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN."
1. The plans reinsured under the Agreement on and after the first day of
January, 1994, shall be those specified in the Appendix I, attached hereto.
2. The reinsurance percentages for the REINSURED'S cost of insurance rates
shall be as described in Schedule D, Part III, attached hereto, and shall apply
to reinsurance of the REINSURED'S Universal Life Plan (Form 94030) ceded under
the Agreement on and after the first day of January, 1994. Such premium rates
shall apply only to reinsurance which when added to all other reinsurance ceded
by the REINSURED to LINCOLN under all agreements does not exceed $5,000,000 on
any one life. Reinsurance ceded on the basis of such premium rates shall
(a) be subject to a minimum cession of $50,001,
(b) not be eligible for experience refunds,
(c) not be eligible for production or persistency bonuses,
(d) not be eligible for premium tax reimbursement, and
(e) not be reduced as set forth in the "INCREASE IN LIMIT OF RETENTION"
article until it has been in force for at least ten years or, in the
case of continuations, until the number of years the original policy
and its continuation have been in force is at least equal to the
greater of ten years and the time period specified for reinsurance of
the original policy.
3. On and after the first day of January, 1994, the "MISCELLANEOUS" article
shall be added to the Agreement and shall read as follows:
"MISCELLANEOUS
1. This Agreement represents the entire agreement between the
REINSURED and LINCOLN and supercedes, with respect to its subject matter,
any prior oral or written agreements between the parties.
2. No modification of any provision of this Agreement shall be
effective unless set forth in a written amendment to this Agreement which
is executed by both parties.
Page 1
3. A waiver shall constitute a waiver only with respect to the
particular circumstances for which it is given and not a waiver of any
future circumstance."
4. The provisions of this amendment shall be subject to all the terms and
conditions of the Agreement which do not conflict with the terms hereof.
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
STATE FARM LIFE INSURANCE COMPANY
Signed at ____________________________
By /s/ Illegible By /s/ Illegible
----------------------------------- ---------------------------------
Title Vice President and Actuary Title Actuary
Date February 28, 1994 Date 2/28/94
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Signed at Fort Xxxxx, Indiana
By /s/ Illegible By /s/ Illegible
----------------------------------- ---------------------------------
Second Vice President Assistant Secretary
Date Illegible Date 3/10/94
Page 2
APPENDIX I
Insurance Subject to Reinsurance under this Agreement
The REINSURED'S entire excess of its issues of the following plans bearing
register dates in the range shown below to insureds having surnames beginning
with the letters of the alphabet shown below.
A. Automatic Reinsurrance
One hundred percent of the reinsurance the REINSURED cedes automatically of
the insurance specified below shall be ceded under this agreement.
Dates Letters
------------------- --------------
Plan from through from through
---- -------- -------- ---- -------
Universal Life Plan (Form 8200) 01-01-84 -- A Z
Universal Life Plan
(Form 86040) 01-01-86 09-30-86 L Z
Universal Life Plan
(Form 86040) 10-01-86 -- A Z
Additional Insured Rider 04-01-90 -- A Z
Survivor Insurance
Option Benefit Rider 04-01-90 -- A Z
Universal Life Plan
(Form 94030) 01-01-94 -- A Z
B. Facultative Reinsurance
One hundred percent of the reinsurance the REINSURED cedes facultatively of
the insurance specified above to the insureds having surnames beginning
with letters A through Z shall be ceded under this agreement provided the
REINSURED has accepted the LINCOLN'S offer to reinsure.
C. Continuations
Continuations to the insurance specified above shall be ceded under this
agreement provided the original policy was reinsured with the LINCOLN under
this or another agreement. The percentage of reinsurance ceded to LINCOLN
shall equal the percentage of the original policy ceded to LINCOLN.
Page 3
SCHEDULE D, PART III
(Effective January 1, 1994)
Reinsurance Premium Rates
Universal Life Plan (Form 94030)
Fully Underwritten Issues
Standard Risks
The annual reinsurance premium rate for reinsurance not in excess of $5,000,000
on any one life* shall be the attached cost of insurance rates charged the
insured per thousand of the net amount at risk times the following percentages:
Policy Year
-----------
Smoking Status Issue Age 1 2+
-------------- --------- --- ---
Non-Tobacco 0-49 [Omitted]
50+
Tobacco All
Substandard Risks
The substandard table extra premiums shall be the attached appropriate rates
times the above percentages.
Continuations to Issues Reinsured Hereunder
The reinsurance premium for policies reinsured under this Agreement as
continuations shall be the appropriate premium described in this Agreement;
unless the reinsurance agreement under which the original policy was reinsured
specifies otherwise, the policy duration and attained age of the insured for
purposes of calculating such premiums shall be determined as though the
continuations were issued on the same date and at the same issue age as the
original policy.
* The reinsurance premium rates for reinsurance in excess of $5,000,000 on
any one life shall be the rates labeled "Q6M3, NONSMOKER," "ZAM3, SMOKER,"
"IOM3, AGGREGATE," and "ZAM4, SUBSTANDARD-EXTRA," nonrefunding and age
nearest birthday, in the Risk Premium Reinsurance agreement effective
January 1, 1986, between the REINSURED and the LINCOLN.
Page 4
SCHEDULE D, PART III (Continued)
Continuations from Issues Reinsured Hereunder
The reinsurance premium for continuations of policies reinsured under this
agreement shall be as described in the agreement which covers the new policy;
unless that agreement specifies otherwise, the policy duration and attained age
of the insured, for purposes of calculating such premiums, shall be determined
as though the continuations were issued on the same date and at the same issue
age as the original policy. If no such agreement is in effect between the
LINCOLN and the REINSURED, reinsurance shall continue hereunder.
Continuation Policy Fee
If the premium scale applicable to a continuation contains a policy fee, a
continuation shall, for purposes of determining the policy fee only and
notwithstanding the method prescribed for calculating the basic premium, be
considered a renewal if the REINSURED has paid the LINCOLN a first-year policy
fee on reinsurance of the original policy and as a new issue if the REINSURED
has not paid the LINCOLN a policy fee on reinsurance of the original policy.
Waiver of Premium Disability
The premium which the REINSURED charges the insured on the amount reinsured less
total allowances of [Omitted] first year and [Omitted] in renewal years.
Page 5
JANUARY 1, 1994
94000 UNIVERAL LIFE
BASE POLICY AND ADDITIONAL INSURED'S RIDER
STANDARD MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE
BASE POLICY AND ADDITIONAL INSURED'S RIDER
STANDARD MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE ONE TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE ONE TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE
BASE P0LICY AND ADDITIONAL INSURED'S RIDER
TABLE TWO TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE TWO TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE THREE TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE THREE TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE FOUR TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE FOUR TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE FIVE TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE FIVE TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE SIX TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE SIX TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE EIGHT TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE EIGHT TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE TEN TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE TEN TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE TWELVE TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE TWELVE TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE SIXTEEN TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE SIXTEEN TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE -- UNISEX
BASE POLICY AND ADDITIONAL INSURED'S RIDER
STANDARD MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE -- UNISEX
BASE POLICY AND ADDITIONAL INSURED'S RIDER
STANDARD MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE -- UNISEX
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE ONE TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE -- UNISEX
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE ONE TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE -- UNISEX
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE TWO TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE -- UNISEX
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE TWO TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE -- UNISEX
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE THREE TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE -- UNISEX
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE THREE TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE -- UNISEX
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE FOUR TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE -- UNISEX
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE FOUR TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE -- UNISEX
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE FIVE TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE -- UNISEX
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE FIVE TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE -- UNISEX
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE SIX TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted}
JANUARY 1, 1994
94000 UNIVERAL LIFE -- UNISEX
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE SIX TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE -- UNISEX
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE SIX TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE -- UNISEX
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE EIGHT TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE -- UNISEX
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE EIGHT TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE -- UNISEX
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE TEN TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE -- UNISEX
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE TEN TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE -- UNISEX
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE TWELVE TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted}
JANUARY 1, 1994
94000 UNIVERAL LIFE -- UNISEX
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE TWELVE TOTAL MONTHLY DEDUCTIONS
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE -- UNISEX
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE SIXTEEN TOTAL MONTHLY DEDUCTION
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
JANUARY 1, 1994
94000 UNIVERAL LIFE -- UNISEX
BASE POLICY AND ADDITIONAL INSURED'S RIDER
TABLE SIXTEEN TOTAL MONTHLY DEDUCTION
CURRENT
-------------------------------------
REGULAR NON-TOBACCO MAXIMUM
ATTAINED ----------------- ----------------- -----------------
AGE MALE FEMALE MALE FEMALE MALE FEMALE
-------- ------- ------- ------- ------- ------- -------
[Omitted]
Monthly Deduction for Riders
Attained Accidental Guaranteed Waiver of Children's
Age Death Insurability Monthly Deduction* Term
-------- ---------- ------------ ------------------ ----------
[Omitted}
Monthly Deduction for Riders
Attained Accidental Guaranteed Waiver of Children's
Age Death Insurability Monthly Deduction* Term
-------- ---------- ------------ ------------------ ----------
[Omitted]
AMENDMENT
to the Risk Premium Reinsurance Agreement (the "Agreement")
effective January 1, 1984, between
STATE FARM LIFE INSURANCE COMPANY of Bloomington, Illinois,
hereinafter referred to as the "REINSURED,"
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY of Fort Xxxxx, Indiana,
hereinafter referred to as "LINCOLN."
1. Notwithstanding Revision No. 8 effective January 1, 1994, the plans
reinsured under the Agreement on and after the first day of January, 1994, shall
be those specified in the Appendix I, attached hereto.
2. The reinsurance percentages for the REINSURED'S cost of insurance rates
shall be as described in Schedule D, Part III, attached hereto, and labeled "VUL
Current COIs," shall apply to reinsurance of the REINSURED'S Variable Universal
Life (VUL) plan ceded under the Agreement on and after the first day of January,
1994. Such premium rates shall apply only to reinsurance which when added to all
other reinsurance ceded by the REINSURED to LINCOLN under all agreements does
not exceed five million dollars ($5,000,000) on any one (1) life. Reinsurance
ceded on the basis of such premium rates shall
(a) be subject to a minimum cession of fifty thousand and one dollars
($50,001),
(b) not be eligible for experience refunds,
(c) not be eligible for production or persistency bonuses,
(d) not be eligible for premium tax reimbursement, and
(e) not be reduced as set forth in the "INCREASE IN LIMIT OF RETENTION"
article until it has been in force for at least ten (10) years or,
in the case of continuations, until the number of years the
original policy and its continuation have been in force is at least
equal to the greater of ten (10) years and the time period
specified for reinsurance of the original policy.
3. The provisions of this amendment shall be subject to all the terms and
conditions of the Agreement which do not conflict with the terms hereof.
Page 1
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
STATE FARM LIFE INSURANCE COMPANY
Signed at _________________________
By /s/ Illegible By /s/ Illegible
-------------------------------- ---------------------------------
Title Vice President and actuary Title Actuary
Date 2/5/99 Date 2/7/99
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Signed at Fort Xxxxx, Indiana
By /s/ Illegible By /s/ Illegible
-------------------------------- ---------------------------------
Vice President Assistant Secretary
Date 1/21/99 Date 1/21/99
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Signed at Xxxxxxx, Xxxxxxx, Xxxxxx
By /s/ Illegible
-------------------------------
Chief Agent in Canada
Date Jan 21, 1999
Page 2
APPENDIX I
Insurance Subject to Reinsurance Under this Agreement
The REINSURED'S entire excess of its issues of the following plans bearing
register dates in the range shown below to insureds having surnames beginning
with the letters of the alphabet shown below.
A. Automatic Reinsurance
One hundred percent (100%) of the reinsurance the REINSURED cedes
automatically of the insurance specified below shall be ceded under this
Agreement.
Dates Letters
------------------- --------------
Plan from through from through
---- -------- -------- ---- -------
Universal Life Plan (Form 8200) 01-01-84 12-31-85 A Z
Universal Life Plan (Form 86040) 01-01-86 09-30-86 L Z
Universal Life Plan (Form 86040) 10-01-86 -- A Z
Additional Insured Rider 04-01-90 12-31-93 A Z
Survivor Insurance Option Benefit Rider 04-01-90 12-31-93 A Z
Universal Life Plan (Form 94030) 01-01-94 -- A Z
Additional Insured Rider (Form A94124) 01-01-94 -- A Z
Variable Universal Life (VUL) Plan 01-01-94 -- A Z
B. Facultative Reinsurance
One hundred percent (100%) of the reinsurance the REINSURED cedes
facultatively of the insurance specified above to insureds having surnames
beginning with the letters A through Z shall be ceded under this Agreement
provided the REINSURED has accepted LINCOLN'S offer to reinsure.
C. Continuations
Continuations to the insurance specified above shall be ceded under this
Agreement provided the original policy was reinsured with LINCOLN under
this or another agreement. The percentage of reinsurance ceded to LINCOLN
shall equal the percentage of the original policy ceded to LINCOLN.
Page 3
SCHEDULE D, PART III
(Effective January 1, 1994)
Reinsurance Premium Rates
Universal Life Plan (Form 94030), Additional Insured Rider (Form A94124)
and Variable Universal Life (VUL) Plan
Fully Underwritten Issues
Standard Risks
The annual reinsurance premium rate for reinsurance not in excess of five
million dollars ($5,000,000) on any one (1) life* shall be the attached cost of
insurance rates charged the insured per thousand of the net amount at risk times
the following percentages:
Variable Universal (VUL) Plan**
Policy Year
-----------
Smoking Status Issue Age 1 2+
-------------- --------- --- --
Non-Tobacco 0-49
50+ [Omitted]
Tobacco All
All Other Plans ***
Policy Year
-----------
Smoking Status Issue Age 1 2+
-------------- --------- --- --
Non-Tobacco 0-49
50+ [Omitted]
Tobacco All
Substandard Risks
The substandard table extra premiums shall be the attached appropriate rates***
times the above percentages.
* The reinsurance premium rates for reinsurance in excess of five million
dollars ($5,000,000) on any one (1) life shall be the rates labeled "Q6M3,
XXXXXXXXX," "XXX0, XXXXXX," "X0X0, AGGREGATE," and "ZAM4,
SUBSTANDARD-EXTRA," nonrefunding and age nearest birthday, in the Risk
Premium Reinsurance agreement effective January 1, 1986, between the
REINSURED and LINCOLN.
** The appropriate rates are attached hereto.
*** The appropriate rates have been previously attached to the Agreement or an
earlier amendment.
Page 4
SCHEDULE D, PART III (Continued)
Continuations to Issues Reinsured Hereunder
The reinsurance premium for policies reinsured under this Agreement as
continuations shall be the appropriate premium described in this Agreement;
unless the reinsurance agreement under which the original policy was reinsured
specifies otherwise, the policy duration and attained age of the insured for
purposes of calculating such premiums shall be determined as though the
continuations were issued on the same date and at the same issue age as the
original policy.
Continuations from Issues Reinsured Hereunder
The reinsurance premium for continuations of policies reinsured under this
Agreement shall be as described in the agreement which covers the new policy;
unless that agreement specifies otherwise, the policy duration and attained age
of the insured, for purposes of calculating such premiums, shall be determined
as though the continuations were issued on the same date and at the same issue
age as the original policy. If no such agreement is in effect between LINCOLN
and the REINSURED, reinsurance shall continue hereunder.
Continuation Policy Fee
If the premium scale applicable to a continuation contains a policy fee, a
continuation shall, for purposes of determining the policy fee only and
notwithstanding the method prescribed for calculating the basic premium, be
considered a renewal if the REINSURED has paid LINCOLN a first-year policy fee
on reinsurance of the original policy and as a new issue if the REINSURED has
not paid LINCOLN a policy fee on reinsurance of the original policy.
Waiver of Premium Disability
The premium which the REINSURED charges the insured on the amount reinsured less
total allowances of [Omitted] first year and [Omitted] in renewal years.
Page 5
SCHEDULE D, PART III (Continued)
Accidental Death Benefits
Based on the classification of the occupational manual of the REINSURED:
Rates Per Thousand
---------------------------------------
Classification First Year Renewal
---------------- ---------- -------
Standard
1 1/2 x Standard
2 x Standard [Omitted]
3 x Standard
5 x Standard
Page 6
01/15/99
VUL Current COIs
attained
age MNS MS FNS FS UNS US
-------- ------- ------- ------- ------- ------- -------
[Omitted]
01/15/99
VUL Current COIs
attained
age MNS MS FNS FS UNS US
-------- ------- ------- ------- ------- ------- -------
[Omitted]
01/15/99
VUL Current COIs
attained
age MNS MS FNS FS UNS US
-------- ------- ------- ------- ------- ------- -------
[Omitted]
