ARTICLE I
BASIS OF REINSURANCE
REINSURANCE UNDER THIS AGREEMENT MUST BE INDIVIDUAL INSURANCE. THE CEDING
COMPANY SHALL AUTOMATICALLY REINSURE THE LIFE INSURANCE FOR THE PLAN(S) AS
STATED IN SCHEDULE A.
1. REQUIREMENTS FOR AUTOMATIC REINSURANCE
A. The individual risk must be a permanent resident of the United States.
B. The individual risk must be underwritten by the CEDING COMPANY
according to the standard underwriting practices and guidelines as
shown in Exhibit IA. The CEDING COMPANY shall immediately notify
BMA of any changes in underwriting practices or guidelines. Any
risk falling into a category of special underwriting programs shall
be excluded from this Agreement.
C. Any risk offered on a facultative basis to BMA or any other
reinsurer shall not qualify for automatic reinsurance.
D. The maximum issue age on any risk shall be as stated in Schedule A.
Applications with issue ages over the limit stated in Schedule A
must be submitted facultatively.
E. The mortality rating on any one risk shall not exceed the Table
Rating stated in Schedule A, or its equivalent on a flat extra
premium basis. Cases exceeding the Table Rating stated in Schedule
A, or its equivalent must be submitted facultatively.
F. The maximum amount of insurance issued and applied for in all
companies on any one risk shall not exceed the Jumbo limits as
stated in Schedule A.
G. On any risk, the CEDING COMPANY must retain the amounts of insurance
as stated in Exhibit I.
H. The maximum amounts of insurance to be reinsured on any one life
shall not exceed the automatic binding limits as stated in Schedule
A.
I. The minimum amount of insurance to be ceded shall be as stated in
Schedule A.
2. REQUIREMENTS FOR FACULTATIVE REINSURANCE
A. Plan of Insurance Listed in Schedule A:
(1) If the Requirements for Automatic Reinsurance are met but the
CEDING COMPANY prefers to apply for facultative reinsurance, or
(2) If Requirements for Automatic Reinsurance are not met then the
CEDING COMPANY must submit to BMA all the underwriting
documentation relating to the insurability of the individual
risk for facultative reinsurance.
B. Plan of Insurance Not Listed in Schedule A:
On a Yearly Renewable Term treaty the CEDING COMPANY may submit an
application for facultative reinsurance on any plan(s).
On a Coinsurance treaty the Ceding Company cannot submit an
application for facultative reinsurance on plan(s) other than the
plan(s) listed in Schedule A.
C. An application for facultative reinsurance may include life
insurance with or without either disability waiver of premium or
accidental death or both. Supplemental benefits without life are
not accepted on an individual cession basis.
D. Copies of all underwriting papers relating to the insurability of
the individual risk must be sent to BMA for facultative reinsurance.
After BMA has examined the underwriting papers, BMA will promptly
notify the CEDING COMPANY of the underwriting offer subject to
additional requirements, the final underwriting offer or
declination. Any final underwriting offer on the individual risk
will automatically terminate upon the earliest of:
(1) The date BMA receives notice of a withdrawal/cancellation by
the CEDING COMPANY,
(2) 120 days after the date on which the offer was made, or
(3) The date specified in BMA's approval to extend the offer.
E. The minimum amount of insurance to be ceded shall be as stated in
Schedule A.
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ARTICLE II
LIABILITY
1. BMA's liability for automatic reinsurance shall begin simultaneously with
the CEDING COMPANY's liability.
2. Except for additional coverage pertaining to conditional receipt as
described in Schedule C, BMA's liability for facultative reinsurance on
individual risks shall not begin unless and until the CEDING COMPANY has
accepted BMA's final and unconditional written offer on the application
for facultative reinsurance.
3. BMA's liability for reinsurance on individual risks shall terminate when
the CEDING COMPANY's liability terminates.
4. As long as the original policy remains in full force, all paid-up
additions and accumulated dividends shall be the liability of the CEDING
COMPANY.
5. In no event shall reinsurance under this Agreement be in force unless the
insurance issued directly by the CEDING COMPANY is in force and is issued
and delivered in a jurisdiction in which the CEDING COMPANY is properly
licensed.
6. The payment of reinsurance premiums in accordance with this Agreement
shall be a condition precedent to the liability of BMA under reinsurance
covered by this Agreement
ARTICLE III
ADMINISTRATIVE REPORTING
1. Self-Administered Business
Promptly after liability for insurance has begun on an individual risk,
the CEDING COMPANY shall have the responsibility of maintaining adequate
records for the administration of the reinsurance account and shall
furnish BMA with monthly reports, in substantial conformity with the
following:
A. MONTHLY NEW BUSINESS REPORT
(1) policy number (10) amount reinsured
(2) full name of insured (11) automatic/facultative indicator
(3) date of birth (12) state of residence
(4) sex (13) table rating
(5) issue age (14) flat extra (amount + number of years)
(6) policy date (15) death benefit option (UL products)
(7) underwriting classification (16) net amount at risk
(8) plan of insurance (17) transaction code
(9) amount issued (18) currency if other than U.S.
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B. MONTHLY CONVERSION REPORT
The CEDING COMPANY shall furnish BMA with a separate listing of
reinsurance policies that are conversions or replacements to the plan(s)
as stated in Schedule A. The listing should provide the following
information:
(1) 1 through 18 in 1.A above (4) attained age
(2) original policy date (5) duration
(3) original policy number (6) effective date if other than
policy date
C. MONTHLY PREMIUM REPORT
At the end of each month the CEDING COMPANY shall send to BMA a listing of
all reinsurance policies issued or renewing during the past month
accompanied by the reinsurance premiums for such policies. The listing
should be segregated into first year issues and renewals and should
provide the following information:
(1) 1 through 18 in 1.A above
(2) current net amount at risk
(3) On Yearly Renewable Term treaties the net reinsurance premium
due for each reinsured policy with the premium for life and
each supplemental benefit separated.
(4) On Coinsurance treaties the gross reinsurance premium,
commissions, net reinsurance premium and other amounts (e.g.
dividends, cash surrender values) with premium separated for
life and each supplemental benefit.
All monthly lists shall be submitted to BMA no later than the 20th day of
the following month.
D. MONTHLY CHANGE REPORT
The CEDING COMPANY shall report the details of all policy terminations and
changes on the reinsured policies. In addition to the data indicated in
1.A, above, the report should provide information about the nature, the
effective date, and the financial result of the change with respect to
reinsurance.
E. MONTHLY POLICY EXHIBIT REPORT
The CEDING COMPANY shall provide a summary of new issues, terminations,
recaptures, changes, death claims and reinstatements during the month and
the inforce reinsurance at the end of the month.
F. QUARTERLY REPORTING
1. Within ten (10) days following the end of the quarter, the CEDING
COMPANY shall provide BMA with Premiums Due and Unpaid and
Commissions Due and Unpaid. This report may be in summary form
reporting totals by line of business with separate totals for first
year and renewals.
2. Within ten (10) days following the end of the quarter, the CEDING
COMPANY shall provide BMA with totals for the reserve liability
including statutory reserves by valuation basis segregated by Yearly
Renewable Term and Coinsurance.
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G. ANNUAL INFORCE LISTING
Within ten (10) days after the close of the year, the CEDING COMPANY shall
furnish BMA a listing of reinsurance in force by policy, by year of issue,
segregated by Yearly Renewable Term and Coinsurance and include statutory
reserves for the same.
H. CLAIMS
Claims shall be reported as incurred on an individual basis.
2. Individual Cession Business
Promptly after liability for reinsurance has begun on the individual risk
the CEDING COMPANY shall send BMA a "Reinsurance Cession". Based on the
information on the "Reinsurance Cession", BMA will prepare and send the
CEDING COMPANY a "Client Individual Cession Record Report". When
reinsurance is reduced or changed the CEDING COMPANY shall send BMA an
"Amended Reinsurance Cession".
ARTICLE IV
PLANS OF REINSURANCE
1. Life reinsurance shall be ceded on the basis stated in Schedule A.
2. Copies of all life insurance policies, riders, rate manuals, benefit
forms, commuted value tables and cash value tables shall be provided by
the CEDING COMPANY to BMA, and BMA shall be promptly notified of any
changes therein.
ARTICLE V
REINSURANCE PREMIUMS
1. Life Reinsurance Premiums
A. Life Reinsurance Premiums Paid on a Coinsurance Basis
The CEDING COMPANY shall pay the current premium as shown in Exhibit II
based on the amount of life insurance reinsured, less the allowance stated
in Exhibit III. In addition, the CEDING COMPANY shall pay any substandard
table extra and flat extra premiums, but shall exclude the policy fee. In
the event the current premium is changed, BMA shall be notified by the
CEDING COMPANY immediately.
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B. Life Reinsurance Premiums on a Yearly Renewable Term Basis
The life reinsurance premium on the net amount at risk shall be based on
rates shown in Exhibit II.
For those premiums less than the valuation net premium based on the 1980
CSO Table at 3% interest, only the latter premiums shall be guaranteed.
Should BMA increase the reinsurance premiums to the valuation net premium
based on the 1980 CSO Table at 3% interest, then the CEDING COMPANY shall
have the right to immediately recapture any business affected by that
change.
ARTICLE VI
PREMIUM ACCOUNTING
1. Payment of Reinsurance Premium.
A. The reinsurance premiums shall be paid to BMA using the rates shown
in Exhibit II.
B. On issues ceded by individual cessions BMA shall send the CEDING
COMPANY each month two copies of a statement listing first year and
renewal reinsurance premiums less refunds and allowances which are
due during the current month.
C. On self-administered business the CEDING COMPANY shall provide the
statement to BMA using the format described in Article III Self-
Administered Business.
D. If a net reinsurance premium balance is payable to BMA the CEDING
COMPANY shall pay this balance within forty-five (45) days after the
close of that month. If the full balance is not received within the
forty-five (45) day period, the reinsurance premiums for reinsurance
risks listed on the statement, for which payment was not received,
shall be delinquent and the liability of BMA shall cease as of the
date reinsurance premium were due.
E. If a net reinsurance premium balance is payable to the CEDING
COMPANY, BMA shall pay this net balance within forty-five (45) days
after the monthly statement was sent to the CEDING COMPANY. If the
monthly statement has not been returned within forty-five (45) days,
BMA shall assume the CEDING COMPANY has verified and is in agreement
with the net balance and shall make payment to the CEDING COMPANY.
2. Currency.
The reinsurance premiums and benefits payable under this Agreement shall
be payable in the lawful money of the United States.
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ARTICLE VII
OVERSIGHTS
If there is an unintentional oversight or clerical error in the administration
of this Agreement by either the CEDING COMPANY or BMA, it can be corrected
provided the correction takes place promptly after the time the oversight or
clerical error is first discovered. In that event, the CEDING COMPANY and BMA
will be restored to the position they would have occupied had such oversight
or clerical error not occurred.
ARTICLE VIII
REDUCTIONS, TERMINATIONS AND CHANGES
1. A. If in accordance with policy provisions the original policy is
converted to permanent life insurance, the life risk under the
converted policy which exceeds the amount of risk originally
retained by the CEDING COMPANY shall continue to be reinsured with
BMA.
B. If there is a replacement where full underwriting evidence is not
required according to the CEDING COMPANY regular underwriting rules,
the life risk which exceeds the amount of risk originally retained
by the CEDING COMPANY shall continue to be reinsured with BMA.
C. If there is a replacement where full underwriting evidence is
required by the CEDING COMPANY, reinsurance may be ceded to BMA
subject to a written agreement between BMA and the CEDING COMPANY.
2. If the amount of insurance under a policy or rider reinsured under this
Agreement increases and
A. The increase is subject to new underwriting evidence, the provisions
of Article I shall apply to the increase in reinsurance.
B. The increase is not subject to new underwriting evidence, BMA shall
accept automatically the increase in reinsurance but not to exceed
the automatic binding limit as stated in Schedule A.
3. If the amount of insurance under a policy or rider reinsured under this
Agreement is increased or reduced, any increase or reduction in
reinsurance for the risk involved shall be effective on the effective date
of the increase or reduction in the amount of insurance.
4. If any portion of the prior insurance retained by the CEDING COMPANY on an
individual life reduces or terminates, any reinsurance under this
Agreement based on the same life shall also be reduced or terminated. The
CEDING COMPANY shall reduce its reinsurance by applying the retention
limits which were in effect at the time the policy was issued. The
"reinsurance adjustment due to lapse or reduction of previous insurance"
shall be effective on the same date as the lapse or reduction of prior
insurance. The reinsurance to be terminated or reduced shall be
determined in chronological order by the date the risk was first
reinsured. Two or more policies issued the same date shall be considered
one policy.
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5. If the insurance for a risk is shared by more than one reinsurer, BMA's
percentage of the increased or reduced reinsurance shall be the same as
BMA's percentage of initial reinsurance of the individual risk.
6. If a risk reinsured under this Agreement is terminated, the reinsurance
for that risk shall be terminated as of the effective date of the
termination.
7. For facultative reinsurance, if the CEDING COMPANY reduces the mortality
rating, the reduction shall be subject to the facultative provisions of
this Agreement as stated in Article I, Section 2.
8. BMA shall refund all unearned reinsurance premiums not including policy
fees, less applicable allowances, arising from reductions, terminations
and changes as described in this Article.
ARTICLE IX
INCREASE IN RETENTION
AND RECAPTURES
1. If the CEDING COMPANY changes its retention limits, as listed in Exhibit
I, prompt written notice of the change shall be provided to BMA.
2. The CEDING COMPANY shall have the option of recapturing the reinsurance
under this Agreement in the event the CEDING COMPANY increases its
retention limit and the policies have been in force the required length of
time as stated in Schedule A. The CEDING COMPANY may exercise its option
to recapture by giving written notice to BMA within ninety (90) days after
the effective date of the increase in retention. If the recapture option
is not exercised within ninety days (90) days after the effective date of
the increase in retention the CEDING COMPANY may choose to recapture at a
later date. In that case, the date of the written notification to BMA
shall determine the effective date the recapture program shall begin.
3. If the CEDING COMPANY exercises its option to recapture, then:
A. The CEDING COMPANY shall reduce the reinsurance on all individual
risks on which it retained its maximum retention for the age and
mortality rating that was in effect at the time the reinsurance was
ceded.
B. The CEDING COMPANY shall increase its total amount of retained
insurance on the individual risk up to its new retention limit by
reducing the amount of reinsurance. If an individual risk is shared
by more than one reinsurer, BMA's percentage of the reduced
reinsurance shall be the same as BMA's initial percentage of
reinsurance on the individual risk.
C. The reduction of reinsurance shall become effective on the later of
the following dates:
(1) The policy anniversary date immediately following the date the
recapture program is to begin as determined by paragraph 2 of
this Article;
(2) The number of years stated in Schedule A starting with the
"policy date."
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D. In the event the CEDING COMPANY overlooks any reduction in the
amount of a reinsurance policy because of an increase in the CEDING
COMPANY's retention, the acceptance by BMA of reinsurance premiums
under these circumstances shall not constitute a liability on the
part of BMA for such reinsurance. BMA shall be liable only for a
refund of premiums.
4. No recapture shall be permitted for reinsurance on an individual risk if
(a) the CEDING COMPANY retained less than its maximum retention for the
age and mortality rating in effect at the time the reinsurance was ceded
to BMA, or if (b) the CEDING COMPANY did not retain any of the individual
risk.
ARTICLE X
REINSTATEMENT
If a policy reinsured under this Agreement lapses for nonpayment of premium or
is continued on the Reduced Paid-up or Extended Term Insurance basis, and is
reinstated in accordance with the terms of the policy and the CEDING COMPANY's
rules, the reinsurance on such policy shall automatically be reinstated by BMA
upon written notice of such reinstatement. The CEDING COMPANY shall pay BMA all
back reinsurance premiums.
ARTICLE XI
EXPENSE OF ORIGINAL POLICY
The CEDING COMPANY shall bear the expense of all medical examinations,
inspection fees, and other charges in connection with the issuance of the
insurance.
ARTICLE XII
CLAIMS
1. The CEDING COMPANY shall give BMA prompt notice of any claim. Copies of
the proofs obtained by the CEDING COMPANY together with a statement
showing the amount due or paid on such claim by the CEDING COMPANY shall
be furnished to BMA at the time payment is requested.
2. BMA shall accept the decision of the CEDING COMPANY in settling the claim
and shall pay its portion to the CEDING COMPANY upon receipt of proof that
the CEDING COMPANY has paid the claimant. It is agreed, however, that if a
lesser amount at risk is retained by the CEDING COMPANY than the amount
ceded to BMA, the CEDING COMPANY shall consult with BMA concerning its
investigation and/or payment of the claim, although the final decision
shall be that of the CEDING COMPANY.
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3. The CEDING COMPANY shall notify BMA of its intention to contest,
compromise, or litigate a claim involving reinsurance, and BMA shall pay
its share of the payment and specific claim expenses therein involved,
unless it declines to be a party to the contest, compromise, or litigation
in which case it shall pay the full amount of the reinsurance to the
CEDING COMPANY. "Claim expenses" shall be deemed to mean only the
reasonable legal and investigative expenses connected with the litigation
or settlement of claims. "Claim expenses" shall not include expenses
incurred in connection with a dispute or contest arising out of
conflicting claims of entitlement to policy proceeds which the CEDING
COMPANY admits are payable or any routine claim administrative expenses,
Home Office or otherwise.
4. In the event 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, BMA shall share in
the increase or reduction in the proportion that the net liability of BMA
bore to the sum of the retained net liability of the CEDING COMPANY and
the net liability of other reinsurers immediately prior to such increase
or reduction. The reinsurance with BMA shall be written from commencement
on the basis of the adjusted amounts using premiums and reserves at the
correct ages and sex. The adjustment for the difference in premiums shall
be made without interest.
5. It is understood and agreed that the payment of a death claim by BMA shall
be made in one sum regardless of the mode of settlement under the policy
of the CEDING COMPANY.
6. In no event shall BMA have any liability for any Extra Contractual Damages
which are assessed against the CEDING COMPANY as a result of acts,
omissions or course of conduct committed by the CEDING COMPANY or its
agents, other than a good faith decision to deny claim liability, in
connection with insurance reinsured under this Agreement. It is
recognized that there may be special circumstances involved which indicate
that BMA should participate in certain assessed damages. These
circumstances are not amenable to advance specific definition, but could
include those situations in which BMA was an active party in the act,
omission or course of conduct which ultimately results in the assessment
of such damages. The extent of such participation will be determined on a
good faith assessment of culpability in each case, but all factors being
equal, the division of any such assessment will generally be in the
proportion of net liability borne by each party.
7. If a claim is approved for disability waiver of premium insurance
reinsured under this Agreement, the CEDING COMPANY shall continue to pay
reinsurance premiums to BMA. BMA shall reimburse the CEDING COMPANY BMA's
proportionate share of the premium waived by the CEDING COMPANY.
ARTICLE XIII
TAX CREDITS
In jurisdictions which impose premium taxes on the CEDING COMPANY without
deduction for reinsurance, BMA shall reimburse the CEDING COMPANY for taxes
paid on the amount of the reinsurance premiums on the basis shown in Schedule
A, unless BMA itself is required to pay a direct tax on such reinsurance
premiums.
ARTICLE XIV
DEFERRED ACQUISITION COSTS TAX
The CEDING COMPANY and BMA elect under Regulation 1.848-2(g) (8) to compute
"specified policy acquisition expense", as defined in section 848(c) of the
Internal Revenue Code, in the following manner:
The party with net positive consideration as determined under Reg. 1.848-2(f)
and Reg. 1.848-3 shall compute specified policy acquisition expenses without
regard to the general deductions limitation of section 848(c)(1) for each
taxable year.
The parties will exchange information pertaining to the aggregate amount of net
consideration as determined under Regs. 1.848-2(f) and 1.848-3, for all
reinsurance agreements in force between them, to insure consistency for the
purposes of computing specified policy acquisition expenses. BMA shall provide
the CEDING COMPANY with the amount of such net consideration for each taxable
year no later than May 1 following the end of such year. The CEDING COMPANY
shall advise BMA if it disagrees with the amounts provided, and the parties
agree to amicably resolve any difference. The amounts provided by BMA shall be
presumed correct if it does not receive a response from the CEDING COMPANY by
May 31.
BMA represents and warrants that it is subject to U.S. taxation under
Subchapter L of the Internal Revenue Code.
ARTICLE XV
INSPECTION OF RECORDS
BMA shall have the right, at any reasonable time, to inspect at the office of
the CEDING COMPANY, all books and documents which relate to reinsurance under
this Agreement.
ARTICLE XVI
INSOLVENCY
1. In the event of insolvency of the CEDING COMPANY, all reinsurance shall be
payable by BMA directly to the CEDING COMPANY or its liquidator, receiver,
or statutory successor, on the basis of the liability of the CEDING
COMPANY under the policy or policies reinsured, without diminution because
of the insolvency of the CEDING COMPANY.
2. It is agreed that the liquidator, receiver, or statutory successor of the
insolvent CEDING COMPANY shall give written notice to BMA of the pending
of a claim against the insolvent CEDING COMPANY on any policy reinsured
within a reasonable time after such claim is filed in the insolvency
proceedings. During the pendency of any such claim BMA may investigate
such claim and interpose, in the proceeding where such claim is to be
adjudicated, any defense or defenses which BMA may deem available to the
CEDING COMPANY or its liquidator, receiver, or statutory successor. The
expense thus incurred by BMA shall be chargeable, subject to court
approval, against the insolvent CEDING COMPANY as part of the expense of
liquidation to the extent of a proportionate share of the benefit which
may accrue to the CEDING COMPANY solely as a result of the defense
undertaken by BMA.
3. Where two or more reinsurers are participating in the same claim and a
majority in interest elect to interpose a defense to such claim, the
expense shall be apportioned in accordance with the terms of the Agreement
as though such expenses had been incurred by the CEDING COMPANY.
4. Any debts or credits, matured or unmatured, liquidated or unliquidated, in
favor of or against either the CEDING COMPANY or BMA with respect to this
agreement or with respect to any other claim of one party against the
other are deemed mutual debts or credits, as the case may be, and shall be
set off, and only the balance shall be allowed or paid.
ARTICLE XVII
ARBITRATION
1. It is the intention of the CEDING COMPANY and BMA that the customs and
practices of the insurance and 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. However, if BMA
and the CEDING COMPANY cannot mutually resolve a dispute or claim which
arises out of or relates to this agreement, the dispute or claim shall be
settled through arbitration.
2. The arbitrators shall be impartial regarding the dispute, and shall base
their decision on the terms and conditions of this agreement plus, as
necessary, on the customs and practices of the insurance and reinsurance
industry.
3. There shall be three arbitrators who must be officers of life insurance
companies other than the parties to this agreement or their subsidiaries.
Each of the parties to this agreement shall appoint one of the arbitrators
and these two arbitrators shall select the third. If a party to this
agreement fails to appoint an arbitrator within thirty (30) days after the
other party to this agreement has given notice of the arbitrator
appointment, the American Arbitration Association shall appoint an
arbitrator for the party to this Agreement that has failed to do so.
Should the two arbitrators be unable to agree on the choice of the third,
then the appointment of this arbitrator is left to the American
Arbitration Association.
4. Except for the appointment of arbitrators in accordance with the
provisions of Section 3 of this Article, arbitration shall be conducted in
accordance with the Commercial Arbitration Rules of the American
Arbitration Association which are in effect on the date of delivery of
demand for arbitration. Arbitration shall be conducted in Kansas City,
Missouri.
5. Each party to this agreement shall pay part of the arbitration expenses
which are apportioned to it by the arbitrators.
6. The award agreed by the arbitrators shall be final, and judgment may be
entered upon it in any court having jurisdiction.
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ARTICLE XVIII
PARTIES TO AGREEMENT
This is an Agreement for indemnity reinsurance solely between the CEDING
COMPANY and BMA. The acceptance of reinsurance under this Agreement shall not
create any right or legal relation whatever between BMA and the insured, owner,
or any other party to or under any policy reinsured under this Agreement.
ARTICLE XIX
ENTIRE CONTRACT
1. This agreement shall constitute the entire agreement between the parties
with respect to business being reinsured hereunder and that there are no
understandings between the parties other than those expressed in this
agreement.
2. Any change or modification to this agreement shall be null and void unless
made by addendum to this agreement signed by both parties.
ARTICLE XX
TERMINATION OF AGREEMENT
1. This Agreement may be terminated at any time by either party giving at
least ninety (90) days written notice of termination. The day the notice
is deposited in the mail addressed to the Home Office, or to an Officer of
either company shall be the first day of the ninety-day (90) period.
2. The CEDING COMPANY shall continue to cede reinsurance and BMA shall
continue to accept reinsurance, as provided for by the terms of this
Agreement, until the date of termination.
3. All automatic reinsurance which became effective prior to the termination
of this Agreement and all facultative reinsurance approved by BMA based
upon applications received prior to termination of this Agreement shall
remain in effect until its termination or expiration, unless the CEDING
COMPANY and BMA mutually decide otherwise.
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IN WITNESS WHEREOF, this agreement shall be effective with policies dated 12:01
A.M. September 1, 1997 and is ▇▇▇▇▇▇ executed in duplicate between
STANDARD LIFE INSURANCE COMPANY OF INDIANA
Indianapolis, Indiana
referred to as the CEDING COMPANY
and
BUSINESS MEN'S ASSURANCE COMPANY OF AMERICA
Kansas City, Missouri
referred to as BMA,
and duly signed by both parties' respective officers as follows:
THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED
BY THE PARTIES.
CEDING COMPANY
▇▇▇▇▇▇ ▇. ▇▇▇▇▇ Executive Vice President and Secretary
signature title
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇ Senior Vice President
signature title
December 8, 1997
date
BMA
SENIOR VICE PRESIDENT/REINSURANCE
signature title
Vice President
REINSURANCE ACTUARY
signature title
date
BMA REINSURANCE TREATY #: 199709 - 002 - 0
AUTOMATIC TREATY
TABLE OF CONTENTS
ARTICLE PAGE
I BASIS OF REINSURANCE 1
II LIABILITY 3
III ADMINISTRATIVE REPORTING 3
IV PLANS OF REINSURANCE 5
V REINSURANCE PREMIUMS 5
VI PREMIUM ACCOUNTING 6
VII OVERSIGHTS 7
VIII REDUCTIONS, TERMINATIONS AND CHANGES 7
IX INCREASE IN RETENTION AND RECAPTURES 8
X REINSTATEMENTS 9
XI EXPENSE OF ORIGINAL POLICY 9
XII CLAIMS 9
XIII TAX CREDITS 10
XIV DAC TAX 11
XV INSPECTION OF RECORDS 11
XVI INSOLVENCY 11
XVII ARBITRATION 12
XVIII PARTIES TO AGREEMENT 13
XIX ENTIRE CONTRACT.. 13
XX TERMINATION OF AGREEMENT 13
SCHEDULES
A SPECIFICATIONS
B BENEFITS AND NAR CALCULATIONS
C ADDITIONAL INFORMATION AND EXCEPTIONS
EXHIBITS
I RETENTION LIMITS
IA UNDERWRITING GUIDELINES
II REINSURANCE PREMIUMS
IIA POLICY FEES, FLAT EXTRAS, SUBSTANDARD PREMIUMS
III COMMISSIONS AND ALLOWANCES (COINSURANCE)
