AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM
REINSURANCE AGREEMENT
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
(NAIC No. 71153)
(FEIN 00-0000000)
AND
TRANSAMERICA LIFE INSURANCE COMPANY
(NAIC No. 86231)
(FEIN 00-0000000)
EFFECTIVE DATE: OCTOBER 1, 2008
ARTICLES
I. The Agreement 3
II. Effective Date 3
III. Reinsurance Coverage 4
IV. Liability for Reinsurance 7
V. Underwriting Review 9
VI. Reinsurance Premiums 11
VII. Reinsurance Reporting 13
VIII. Credit for Reinsurance 13
IX. Errors 15
X. Policy Conversions, Other Changes, and Terminations 15
XI. Policy Reinstatement 18
XII. Claims 19
XIII. Extra-Contractual Obligations 22
XIV. DAC Tax S 1.848-2(g)(8) Election 23
XV. Insolvency 24
XVI. Recapture of Reinsured Business 25
XVII. Offset 26
XVIII. Dispute Resolution 26
XIX. Arbitration 26
XX. Termination of this Agreement for New Business 27
XXI. Confidentiality 28
XXII. General Provisions 29
XXIII. Notices and Communications 33
Execution 35
SCHEDULES
A. Plans of Insurance Covered Under this Agreement 36
B. Reinsurance Specifications 40
C. Foreign National Underwriting Program 42
D. Other Special Underwriting Programs 45
E. Ceding Company's Standard Underwriting Practices and Guidelines 48
F. Policies Eligible for Reinsurance Under this Agreement 63
EXHIBITS
I. Reinsurance Premium Calculation 64
II. Retention, Binding, and Total Pool Issue Limits 68
III. Annual Rates per $1,000 of Reinsured Net Amount at Risk 72
IV. Allowance Percentages to be Applied to the Annual Rates per $1,000 93
V. Substandard Table Percentages 94
VI. Conditional Receipt or Temporary Insurance Agreement 95
VII. Reinsurance Reports 99
ALL SCHEDULES AND EXHIBITS ATTACHED WILL BE CONSIDERED PART OF THIS REINSURANCE
AGREEMENT.
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ARTICLE I
THE AGREEMENT
A. The Agreement and Parties to the Agreement
This is a monthly renewable term agreement for indemnity life reinsurance (the
"Agreement") solely between Hartford Life and Annuity Insurance Company, a
Connecticut corporation ("Ceding Company"), and Transamerica Life Insurance
Company, an Iowa corporation ("Reinsurer"). The Ceding Company and the Reinsurer
are each referred to individually as a "Party," and collectively as the
"Parties," to this Agreement.
This Agreement shall be binding upon the Ceding Company and the Reinsurer and
their respective successors and assignees.
The acceptance of risks under this Agreement will create no right or legal
relationship between the Reinsurer and the insured, owner, beneficiary, or
assignee of any insurance policy or other contract of the Ceding Company.
B. Complete and Entire Agreement
This Agreement, which includes all Schedules and Exhibits attached hereto and
any amendments entered into hereafter, constitutes the entire agreement of the
Parties pertaining to the transaction contemplated by this Agreement. This
Agreement supersedes and replaces all oral and written agreements previously
made or existing by and between the Parties or their representatives with regard
to the transaction contemplated by this Agreement.
This Agreement shall not be amended or modified except by written amendment,
signed by duly authorized officers of each Party.
Routine communications are those communications contemplated by this Agreement
that are not intended to change any of its risk transfer characteristics. Such
communications may include, but are not limited to, reinsurance reporting and
premium administration, underwriting review, claim submission and review,
participation in claim litigation and settlements, audit reviews, and the
resolution of disputes by arbitration or court proceedings. These communications
serve to clarify the obligations of the Parties under this Agreement and should
not be construed as modifications of this Agreement. Any modifications of this
Agreement shall be effected only by written amendment as provided for above.
ARTICLE II
EFFECTIVE DATE
The Effective Date of this Agreement is October 1, 2008.
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ARTICLE III
REINSURANCE COVERAGE
Reinsurance under this Agreement will apply to those Plans of Insurance and
Riders set forth in Schedule A that also fall within a category of policies
eligible for reinsurance under this Agreement as described in Schedule F. Such
reinsurance shall be either on an automatic basis, subject to the requirements
set forth in Section A below, on an automatic processing basis, subject to the
requirements set forth in Section B below, or on a facultative basis, subject to
the requirements set forth in Section C below. Notwithstanding the foregoing,
reinsurance coverage on a facultative basis may also apply on plans of insurance
not listed in Schedule A, with the agreement of the Reinsurer. The
specifications for all reinsurance under this Agreement are provided in Schedule
B.
The term "Excess Risk," as used in this Agreement, shall mean a risk for which
the amount to be written on a life by the Ceding Company, when added to any
other amounts of risk for that life already in the Automatic Pool and any
amounts not in the Automatic Pool that are retained by the Ceding Company or its
affiliated companies, exceeds, either in whole or in part, the Total Allocation
Limit for that life shown in Exhibit II.
A. Automatic Reinsurance
For each risk that meets the requirements for Automatic Reinsurance as set forth
below, the Reinsurer will participate in a reinsurance pool whereby the
Reinsurer will automatically reinsure a portion of the risk as indicated in
Schedule B ("Automatic Pool"). The requirements for Automatic Reinsurance are as
follows:
1. Each life, at the time of application, must:
a. have been a legal resident of the United States or Canada for at
least six months;
b. be a citizen of the United States or Canada; or
c. qualify for the Foreign National Underwriting Program as specified
in Schedule C.
2. Each risk must be underwritten according to the Ceding Company's Standard
Underwriting Practices and Guidelines or one of the special underwriting
programs. The Ceding Company's Standard Underwriting Practices and Guidelines as
of the Effective Date are described in Schedule E, and the Ceding Company's
special underwriting programs as of the Effective Date are described in Schedule
C and Schedule D. Changes to such documents will be handled in accordance with
Section XXII.M.
If the Ceding Company would like to offer coverage at a risk class more
favorable than the True Assessed Risk Class, the Ceding Company may:
a. Reinsure the risk automatically under this Agreement with
Reinsurance Premiums based on the True Assessed Risk Class; or
b. Seek to reinsure the risk facultatively under this Agreement at rates
more favorable than the True Assessed Risk Class; or
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c. Decide not to reinsure the risk under this Agreement.
For purposes of this Agreement, "True Assessed Risk Class" shall mean the risk
class assessed by the Ceding Company prior to any adjustments made as a result
of the Ceding Company's Enhanced Standard or similar special underwriting
program.
3. If any risk on the life of a proposed insured was previously submitted by
the Ceding Company on a facultative basis to the Reinsurer or to any other
reinsurer, at least three (3) years must have elapsed since that previous risk
was submitted facultatively, unless the original reason for submitting
facultatively no longer applies.
4. The maximum issue age for each life is 85. For Last Survivor policies, the
minimum issue age is 18, for all other policies, the minimum age is 0.
5. The mortality rating on each life does not exceed Table P. However, for Last
Survivor policies, one life may be uninsurable if the other life does not exceed
Table F.
6. The total amount of risk on that life to be reinsured in the Automatic Pool
and under any other individual life reinsurance agreement with any reinsurer
does not exceed the Automatic Binding Limit for that life shown in Exhibit II.
7. For any Excess Risk, the total amount of risk on that life in force and
applied for in all companies must not exceed the Jumbo Limit for that life shown
in Exhibit II. (For Last Survivor risks, see the Last Survivor Limits and
Retention Worksheet in Exhibit II.) Any amounts of risk being replaced by the
Ceding Company may be deducted from this total amount of risk only under the
following conditions:
a. Existing permanent insurance is being replaced by the Ceding
Company, with or without a Section 1035 exchange, and the Ceding
Company has obtained a duly executed absolute assignment of the
insurance being replaced; or
b. Existing term insurance is being replaced by the Ceding Company, and
the Ceding Company has obtained a duly executed absolute assignment
of the insurance being replaced; or
c. An internal replacement is being made, where the Ceding Company is
replacing an in-force policy with a new policy of equal or greater
death benefit.
When the total amount in force and applied for, that is to be compared with the
applicable Jumbo Limit, is reduced due to the above conditions, the Ceding
Company assumes full responsibility to effect the cancellation of life insurance
coverage under the replaced insurance concurrently with the commencement of
coverage under the new policy. If the cancellation does not occur in a timely
manner and the failure to cancel results in the new policy causing reinsurance
coverage to exceed the applicable Jumbo Limit, then the Reinsurer may (when the
Reinsurer becomes aware of the Jumbo Limit violation) decline reinsurance
coverage on the new policy during the period of time while both policy coverages
are in effect, by written notice to the Ceding Company. Once this notice has
been given, the Reinsurer will have no liability for reinsurance coverage on the
new policy while both policy coverages are in effect and shall refund to the
Ceding Company all related Reinsurance Premiums for the new policy. However, if
reinsurance coverage on the
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new policy is declined for this reason and the cancellation of life insurance
coverage under the replaced insurance is later effected, then, upon receipt of
the Ceding Company's written notice to this effect, the Reinsurer will again
become liable for reinsurance coverage on the new policy as of the effective
date of cancellation of coverage under the replaced policy, and Reinsurance
Premiums for the new policy will again be payable.
8. If all the other requirements for Automatic Reinsurance are met and the life
is a player or coach on a team in the National Hockey League, the National
Football League, the National Basketball Association or Major League Baseball,
and:
a. The risk is not an Excess Risk, then the Ceding Company shall notify
the Reinsurer of this fact at the time of issue of the risk; or
b. The risk is an Excess Risk, then, prior to ceding the risk
automatically under this Agreement, the Ceding Company must confirm
the Reinsurer's available capacity for that risk. The Ceding Company,
by telephone call or electronic mail, shall: (1) notify the
Reinsurer's Chief Underwriter, or designee, of the life's name, date
of birth, sport and team affiliation, the total life insurance in
force and to be placed on the life, and the amount of new reinsurance
coverage required from the Reinsurer; and (2) confirm that an
application for insurance on the life has been completed. The
Reinsurer shall endeavor to inform the Ceding Company of its
available capacity for the risk within two business days after such
notification and confirmation. After the Reinsurer has advised the
Ceding Company of the amount of its available capacity, the Ceding
Company may then cede to the Reinsurer no more than that amount on an
automatic basis under this Agreement.
9. The Ceding Company, or one of its affiliates, shall retain its share of each
risk on a life, as described in this Agreement and in any other life reinsurance
agreement applicable to risk on that life. However, the Ceding Company reserves
the right to separately reinsure any amount of the retained risk on a life
reinsured under this Agreement with these conditions:
a. This right, as it pertains to such lives, applies only to groups of
risks defined as cohorts of risks reinsured for at least five (5)
years and issued either during a continuous period (such as one or
more years) or under one or more Plans of Insurance shown in
Schedule A, and does not apply to individual lives or to small,
non-homogeneous groups of risks;
b. The remaining amount of risk retained on that life by the Ceding
Company,
c. Any amounts of retention separately reinsured in this manner shall
not reduce the amount of the Ceding Company's retention on that life
for the purpose of any other terms of this Agreement.
B. Automatic Processing
If the requirements for Automatic Reinsurance are met for a life except for the
requirement stated above in Section A.6, but the total amount of risk on that
life to be reinsured in the Automatic Pool and under any other individual life
reinsurance agreement with any reinsurer
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does not exceed the Automatic Processing Limit for that life shown in Exhibit
II, then the Ceding Company may submit to the Lead Reinsurer (designated in
Schedule B) all information relating to the insurability of that life. For Last
Survivor policies where one life is deemed uninsurable, only the information for
the other life needs to be submitted.
The Lead Reinsurer shall review the submitted information to determine if the
life should be reinsured by the Automatic Pool and, if so, on what basis. The
Lead Reinsurer shall endeavor to provide the Ceding Company with a response
within 72 hours of receipt of such information. Approval by the Lead Reinsurer
shall be binding on all other current Automatic Pool reinsurers. This process
shall be known as Automatic Processing and shall be subject to Exhibit II.
Hereinafter, all references to Automatic Reinsurance, coverage automatically
reinsured, and the Automatic Pool will include coverage reinsured through
Automatic Processing.
C. Facultative Reinsurance
If the requirements for Automatic Reinsurance are not met and the Ceding Company
applies for Facultative Reinsurance with the Reinsurer, or if the requirements
for Automatic Reinsurance are met but the Ceding Company prefers to apply for
Facultative Reinsurance with the Reinsurer, then the Ceding Company shall submit
to the Reinsurer sufficient evidence agreed upon between the Ceding Company and
the Reinsurer, relating to the insurability of each life submitted for
Facultative Reinsurance. For Last Survivor policies where one life is deemed
uninsurable, only the information for the other life needs to be submitted.
The Reinsurer shall promptly notify the Ceding Company in writing of its
declination to offer, its underwriting offer subject to additional requirements,
or its final underwriting offer. The final underwriting offer will automatically
expire upon the earliest of: (1) the date the policy application is withdrawn;
(2) the expiration date specified in the final offer; (3) the date one hundred
twenty (120) days after the date of the final offer; and (4) the date the final
offer is accepted, provided such offer is accepted within the lifetime of the
proposed insured(s).
Once the Ceding Company has accepted the Reinsurer's final underwriting offer,
then Facultative Reinsurance for the risk under this Agreement will become
effective under this Agreement as described below in Article IV.C or Article
IV.E, as applicable.
ARTICLE IV
LIABILITY FOR REINSURANCE
A. The Reinsurer's liability for Automatic Reinsurance will begin
simultaneously with the Ceding Company's liability, but in no event prior to the
Effective Date.
B. The Reinsurer's liability for any risk reported as reinsured on an automatic
basis that did not meet the requirements for Automatic Reinsurance as specified
in Article III shall be limited to a refund of any net Reinsurance Premiums paid
under this Agreement with respect to such risk. Such refund shall be made
without interest.
C. The Reinsurer's liability under this Agreement for Facultative Reinsurance
on a risk:
1. Shall be subject to the terms and conditions of the accepted final
underwriting offer
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for that risk; and
2. Shall begin simultaneously with the Ceding Company's liability once:
a. The Reinsurer has made a written final underwriting offer to the
Ceding Company on its application for Facultative Reinsurance; and
b. The Ceding Company has accepted the Reinsurer's final underwriting
offer:
(1) While life insurance coverage (if any) is in effect under the
Ceding Company's Insurance Receipt, as provided below in Section
E; or
(2) Otherwise, by written acceptance provided to the Reinsurer.
However, the Reinsurer reserves the right to rescind its liability under this
Agreement for Facultative Reinsurance on such risk, by written notice to the
Ceding Company, if the Ceding Company has not, within 240 days after the date of
the final underwriting offer:
1. Reported the risk to the Reinsurer; or
2. Remitted the applicable first Reinsurance Premium for the risk.
D. In no event shall reinsurance be in force and binding if the issuance and
delivery of such insurance constituted the doing of business in a jurisdiction
in which the Ceding Company knowingly was not properly licensed.
E. The Reinsurer's liability for coverage under the Ceding Company's
conditional receipt or temporary insurance agreement, whichever the Ceding
Company uses (a copy of which is included as Exhibit VI and, for the purpose of
this Section E, hereinafter called the "Insurance Receipt"), is limited to the
amount the Reinsurer would reinsure under this Agreement on an Automatic
Reinsurance basis (whether the risk qualifies for Automatic Reinsurance or not)
if the coverage under the policy applied for would have been approved and
issued, as limited by the terms of the Insurance Receipt, provided:
1. The Ceding Company has followed its normal cash-with-application procedures
for such coverage; and
2. The Ceding Company's original underwriting assessment for the risk was not a
decline (if it was a decline, the Reinsurer would have no liability for such
coverage except as described below in Paragraph 5); and
3. There is no coverage in effect on the life in the Automatic Pool through any
other Insurance Receipt having an effective date preceding, or the same as, the
effective date of such coverage; and
4. If such coverage is on a risk that also exceeds either the Automatic Binding
Limit or the Jumbo Limit for the risk as shown in Exhibit II, then the
Reinsurer's liability for such excess amount of coverage will be limited by the
Reinsurer's available capacity; and
5. If the Ceding Company has accepted any final underwriting offer(s) for
Facultative Reinsurance on the risk (whether such offer is made by the Reinsurer
as described above in Section III.C. or by any other reinsurer(s)), then the
Reinsurer's liability for
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such coverage under the Insurance Receipt will be equal to:
a. The amount of coverage in effect under the terms of the Insurance
Receipt; multiplied by [Redacted]
b. The proportion equal to the amount of Facultative Reinsurance
included in the Reinsurer's final underwriting offer that is accepted
by the Ceding Company, divided by the total amount of the risk to be
issued by the Ceding Company.
In no event, however, will the Reinsurer have any liability under the insurance
receipt once the Reinsurer has notified the Ceding Company in writing of its
declination to offer Facultative Reinsurance coverage, as described above in
Article III.C.
The Reinsurer's liability for coverage under the Insurance Receipt shall
terminate simultaneously with the termination of the Ceding Company's liability
under the Insurance Receipt.
F. The Reinsurer's liability for reinsurance on each risk will terminate when
the Ceding Company's liability terminates, unless it terminates earlier as
specified otherwise in this Agreement.
G. The liability of each reinsurer in the Automatic Pool shall be separate and
not joint with the other pool reinsurers. In no way will the liability of the
Reinsurer be increased by reason of the inability of the Ceding Company to
collect from any other reinsurers, whether specific or general, any amounts
which may be due from them, whether such inability arises from insolvency of
such other reinsurers or otherwise.
ARTICLE V
UNDERWRITING REVIEW
X. Xxxxxxx of Underwriting Review
For new business written by the Ceding Company that meets the requirements for
Automatic Reinsurance, the Ceding Company intends to underwrite applications for
such business as if the business were to be fully retained by the Ceding
Company. Such business shall be underwritten according to the underwriting
practices and guidelines described in Schedules C, D, or E, as applicable.
The underwriting practices and professional judgment used by the Ceding Company
in arriving at a risk assessment may not agree entirely with the underwriting
practices customarily used by, or the professional judgment of, the Reinsurer
under similar circumstances.
It is the purpose of this review to:
1. Afford the Reinsurer a reasonable period of time to review the underwriting
practices used, and risk assessments made, by the Ceding Company on
automatically reinsured business; and
2. Settle on a risk assessment for a case that is mutually agreeable between
the
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Parties and that shall be used to determine the Reinsurance Premiums for the
risk from the beginning of the reinsurance liability under this Agreement for
any such case reviewed by the Reinsurer within that period of time where the
underwriting practices used or risk assessment made by the Ceding Company differ
materially from the opinion of the Reinsurer.
It is NOT the purpose of this review, nor is it within the authority of the
Reinsurer under this Agreement, to deny reinsurance coverage on any
automatically reinsured business written by the Ceding Company due to a
difference of opinion over the risk assessment on a policy application.
B. Underwriting Review Process
1. This review shall only be available to the Reinsurer during the first
twenty-four (24) months following the effective date of any risk automatically
reinsured under this Agreement
2. For any risk reviewed during this period where the Reinsurer's opinion
differs materially from that of the Ceding Company, the Parties shall work
together in good faith to develop a mutually agreeable risk assessment to be
used to calculate the Reinsurance Premiums for that risk from the beginning of
the Reinsurer's liability for that risk under this Agreement
3. For any risk reviewed during this period where the Parties cannot mutually
agree on a risk assessment within a reasonable time period, the Parties shall
submit the risk for dispute resolution under Article XVIII.
4. This review shall not be available and the Reinsurer may not challenge any
risk assessments made by the Ceding Company after this twenty-four (24) month
period. However, nothing herein shall be construed to prevent Reinsurer from
reviewing, at time of claim, all aspects of the underlying risk, including but
not limited to financial and medical underwriting, for the purpose of confirming
qualification of the risk for Automatic Reinsurance.
C. Ceding Company's Responsibilities to the Reinsurer for Underwriting Review
The Ceding Company shall provide to the Reinsurer all information in its
possession, reasonably requested by the Reinsurer that was used in underwriting
and assessing the risks for each qualifying case identified for review under
this Article.
This information to be provided to the Reinsurer may be transmitted using any
medium agreed upon by the Parties; a valid copy of the information shall satisfy
this purpose.
This information shall be delivered to the Reinsurer within thirty (30) calendar
days after the Ceding Company receives the request for the information, unless
an alternative delivery period is agreed upon by the Parties.
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ARTICLE VI
REINSURANCE PREMIUMS
A. Computation
Reinsurance Premiums under this Agreement shall be calculated as described in
Exhibit I.
B. Timing
Reinsurance Premiums are payable each month of coverage for reinsured risks in
force at the end of the preceding month. For newly reinsured risks with a
reinsurance effective date during the current month, the Reinsurance Premium for
the first month of coverage will be payable in the next following monthly
statement.
C. Extended Policy Maturity
If the maturity date of a reinsured policy is extended in accordance with the
policy, the death benefit under the policy will continue to be payable as
provided in the policy, and the reinsurance under this Agreement will remain in
effect on the same terms as before the policy's original maturity date.
D. Unearned Reinsurance Premiums
The Reinsurer will refund to the Ceding Company all unearned Reinsurance
Premiums, less applicable allowances, arising from policy conversions, other
changes, and terminations described in Article X. If termination is due to
lapse, surrender or conversion, unearned Reinsurance Premium will be determined
as of the effective date of termination. If termination is due to death,
unearned Reinsurance Premium will be determined as of the date of death.
E. Guaranteed Rates
Although the Reinsurer anticipates continuing to accept Reinsurance Premium at
the current rate level, the Reinsurer reserves the right to increase the YRT
Reinsurance Rate Factors (described in Exhibit I) for any Plan of Insurance but
in no event will the increased annual YRT Reinsurance Premium Rate, as defined
in Exhibit I, for standard risks exceed the applicable annual rates in the
Valuation Mortality Table specified in Schedule A for that Plan of Insurance.
Such increased rates shall apply for policy years beginning during the fifth
calendar year after the calendar year during which the Ceding Company receives
written notice of the rate increase.
The Reinsurer and the Ceding Company shall then endeavor in good faith to
mutually agree on the amount of rate increase that shall apply to that specific
Plan of Insurance. If the Parties cannot agree on the amount of such rate
increase for a Plan of Insurance, then the Ceding Company reserves the right to
recapture the risks associated with such Plans of Insurance without fee, as of
the effective date of the rate increase. Written notice of such recapture shall
be provided to the Reinsurer no later than thirty (30) days following the
effective date of the rate increase.
F. Payment of Reinsurance Premiums
The Net Reinsurance Premium Balance payable each month equals the sum of the
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Reinsurance Premiums described above in Section A, minus the sum of any unearned
Reinsurance Premiums described above in Section D. For any month, this net
balance may be positive (greater than zero) or negative.
Any positive Net Reinsurance Premium Balance for a month is payable to the
Reinsurer. The Ceding Company shall forward this balance to the Reinsurer by its
due date, which is thirty (30) days after the close of the calendar month.
The absolute value of any negative Net Reinsurance Premium Balance for a month
is payable to the Ceding Company. The Reinsurer shall forward this balance to
the Ceding Company by its due date, which is thirty (30) days after the Ceding
Company submits the statement for that month.
G. Overpayment of Reinsurance Premiums
If the Ceding Company overpays a Net Reinsurance Premium Balance and the
Reinsurer accepts the overpayment, the Reinsurer's acceptance of the overpayment
will not constitute or create an additional reinsurance liability, and it will
not result in any additional reinsurance. Instead, the Reinsurer shall be liable
to the Ceding Company for a credit in the amount of the overpayment without
interest.
H. Underpayment of Reinsurance Premiums
If the Ceding Company fails to make a full payment of the Net Reinsurance
Premium Balance, due to an Error defined in Article IX, the amount of
reinsurance coverage provided by the Reinsurer on the risks related to such
underpayment shall not be reduced. However, once the underpayment is discovered
by one Party and the other Party is notified of the underpayment, the Ceding
Company shall promptly pay to the Reinsurer the difference between the full
payment amount and the amount actually paid. If payment of the full amount of
the underpayment is not made to the Reinsurer within sixty (60) days after such
discovery, the underpayment shall be treated as delinquent premium and be
subject to the conditions listed below in Section I.
The Reinsurer reserves the right to charge the Ceding Company interest on the
amount of the underpayment, even if it becomes delinquent as described below in
Section I. Such interest will accrue from the due date of the underpaid Net
Reinsurance Premium Balance and be computed as described in Section XXII.P.
I. Termination of Reinsurance for Nonpayment of Reinsurance Premiums
If undisputed Reinsurance Premiums for one or more reinsured risks are
delinquent, the Reinsurer has the right to terminate its reinsurance liability
on those risks by giving the Ceding Company sixty (60) days advance written
notice of termination. This notice shall list the risks and the amount of the
delinquent Reinsurance Premium for each risk. If the delinquent Reinsurance
Premiums have not been paid to the Reinsurer as of the end of such notice
period, the Reinsurer's liability will terminate for the risks described in the
termination notice at the end of such notice period.
If the Reinsurer's liability on one or more of the Ceding Company's risks is
terminated because of nonpayment of Reinsurance Premiums, the Ceding Company
will continue to be liable to the Reinsurer after the termination for all unpaid
Reinsurance Premiums earned up to the date of such termination.
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The Ceding Company shall not force termination under the provisions of this
Section I solely to avoid the recapture requirements or to transfer the block of
business reinsured to another reinsurer.
J. Reinstatement of Reinsurance Terminated for Nonpayment of Reinsurance
Premiums
The Ceding Company may reinstate reinsurance on risks terminated in accordance
with Section I within sixty (60) days after the effective date of termination by
paying the unpaid Reinsurance Premiums for the risks inforce prior to the
termination. However, the Reinsurer will not be liable for any claim incurred
between the date of termination and the date of reinstatement of the reinsurance
coverage. The effective date of reinstatement will be the date the required
unpaid Reinsurance Premiums are received by the Reinsurer.
ARTICLE VII
REINSURANCE REPORTING
A. Accounting Statements and Other Reports
Within thirty (30) days after the close of each calendar month the Ceding
Company shall provide the Reinsurer an electronic accounting statement. The
Ceding Company shall also provide the Reinsurer with additional reports as
provided in Exhibit VII.
For Automatic and Facultative Reinsurance becoming effective during the calendar
month, the Ceding Company will notify the Reinsurer of such new reinsurance
business in the succeeding monthly report. However, the first three monthly
reports under this Agreement will be sent within one hundred twenty (120) days
after the due date of the first monthly report.
Additional reports reasonably requested by a Party will be provided by the other
Party in a timely manner.
B. Reporting Format and Medium
The information to be provided by the Ceding Company in these monthly reports to
the Reinsurer shall be in a format and be transmitted using a medium mutually
agreeable to the Parties. As of the Effective Date of this Agreement, the
information to be provided by the Ceding Company in these monthly reports to the
Reinsurer shall be on a self-administered reporting basis as set out in Exhibit
VII.
ARTICLE VIII
CREDIT FOR REINSURANCE
X. Xxxxxxxxxxx Credit
The Parties intend that the Ceding Company be entitled to take credit for the
reinsurance ceded under this Agreement in its statutory financial statements
filed in all jurisdictions in which the Ceding Company is licensed, accredited,
or otherwise authorized to transact business ("Reinsurance Credit"). The Parties
shall use best efforts to ensure that such entitlement shall become and remain
available to the Ceding Company throughout the
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duration of this Agreement.
The amount of the Reinsurance Credit shall be determined by the Ceding Company
and shall include mortality risk reserves, unearned premium reserves, and
reinsurance recoverables on paid and unpaid losses for the reinsurance ceded
under this Agreement. Such amounts shall be calculated in accordance with
applicable accounting and valuation laws, regulations and actuarial guidelines
to which the Ceding Company is subject on each valuation date and shall take
into account the terms of this Agreement.
B. Reinsurer Representation
The Reinsurer represents to the Ceding Company that it was properly licensed or
accredited in all jurisdictions in which the Ceding Company is licensed,
accredited, or otherwise authorized to transact insurance business, so that the
Reinsurance Credit shall be allowed. The Reinsurer shall notify the Ceding
Company in accordance with Article XXIII, immediately upon learning of any
change in, or loss of, such licensing or accreditation.
C. Security for Reinsurance Credit
In the event the Ceding Company reasonably believes it will not be entitled to
take Reinsurance Credit as a result of a change to the Reinsurer's licensing or
accreditation, the Reinsurer shall establish and maintain the security, at its
sole expense, that is needed to allow the Ceding Company to continue to take
Reinsurance Credit and that meets all applicable laws and regulations regarding
Reinsurance Credit.
In the event the Ceding Company reasonably believes it will not be entitled to
take Reinsurance Credit as a result of a regulatory change or interpretation
outside of the Reinsurer's control, the Reinsurer shall establish and maintain
the security that is needed to allow the Ceding Company to continue to take
Reinsurance Credit and that meets all applicable laws and regulations regarding
Reinsurance Credit. In this event, the expense of establishing and maintaining
the security shall be shared equally by the Ceding Company and the Reinsurer.
If such security is required in either event, the Reinsurer shall establish a
trust or a letter of credit, satisfactory to the Ceding Company, in a form that
meets all applicable standards of law and regulation to entitle the Ceding
Company to claim such Reinsurance Credit. However, the Reinsurer may propose an
alternative option under which Reinsurance Credit shall be allowed the Ceding
Company, at the sole discretion and approval of the Ceding Company.
The Parties shall amend this Agreement, in accordance with Section I.B, to
reflect the establishment of such security or such approved alternative option
so that the Ceding Company shall continue to be entitled to take such
Reinsurance Credit.
If the Reinsurer fails to provide the Ceding Company with such security or
approved alternative option needed to continue to be entitled to take such
Reinsurance Credit for the business covered under this Agreement, the Ceding
Company may recapture the business covered under this Agreement, subject to the
terms of Article XVI. In no event shall recapture be construed to be the
exclusive remedy of the Ceding Company.
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ARTICLE IX
ERRORS
Errors, omissions, oversights, delays or misunderstandings in the administration
of this Agreement (collectively, "Error") by either Party, shall, not invalidate
the reinsurance hereunder. As soon as reasonably possible after discovery,
notice shall be provided, the Error shall be rectified and both Parties shall be
restored, to the extent possible, to the position they would have occupied had
the Error not occurred.
However, if it is not reasonably possible to restore each Party to the position
it would have occupied if not for the Error, the Parties will endeavor in good
faith to promptly resolve the situation in a manner that is fair and reasonable,
and most closely approximates the intent of the Parties as evidenced by this
Agreement.
ARTICLE X
POLICY CONVERSIONS, OTHER CHANGES, AND TERMINATIONS
A. Conversions
A conversion is a policyholder's exercise of a contractual right to replace
in-force coverage with a new permanent policy without evidence of insurability.
Conversions from a policy reinsured under this Agreement will continue to be
reinsured under this Agreement as follows:
1. The converted coverage under the new policy will be reinsured with the
Reinsurer in the same proportion as was determined for the in-force coverage
converted; and
2. Reinsurance Premiums for such converted coverage shall be calculated on a
point-in-scale basis.
Conversions from a policy not reinsured under this Agreement shall not be
reinsured under this Agreement.
B. Increases and Decreases in Policy Face Amount
1. If the face amount of a policy reinsured under this Agreement increases and:
a. The increase is subject to full underwriting, then the provisions of
Article III shall apply to the increase in reinsurance and
Reinsurance Premiums for the increase shall be based on new-business
rates; or
b. The increase is not subject to full underwriting, and:
(1) The policy was ceded automatically, and:
(a) The face amount after the increase does not exceed the
applicable Automatic Issue Limit, then the Reinsurer will
accept the increase; or
(b) The increase does not meet the requirement above in (a), then
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the increase shall be subject to the Reinsurer's consent; or
(2) The policy was ceded facultatively, then the increase shall be subject to
the Reinsurer's consent.
Reinsurance Premiums for increases not subject to full underwriting shall be
calculated on a point-in-scale basis.
c. For increases in accordance with B.1.b, the Ceding Company's
retention and the amount of risk ceded to the Reinsurer shall be
determined for the increase at the time the increase goes into
effect, as follows:
(1) For increases in accordance with B.1.b (1), in accordance with
Schedule B; or
(2) For increases in accordance with B.1.b (2), the Ceding Company's
retention and the amount of risk ceded to the Reinsurer shall be
determined by mutual agreement of the Parties.
2. If the face amount of a policy reinsured under this Agreement decreases and:
a. If the face amount of a policy that was previously increased is
subsequently decreased, the decrease will be applied first to the
increase with the latest effective date, and then to the increase
with the next earlier effective date, and so forth as necessary,
until applying any remaining decrease to the initial face amount of
the policy.
b. The Ceding Company's retention and the amount of risk ceded to the
Reinsurer shall be determined at the time the decrease goes into
effect, as follows:
(1) For decreases under policies ceded automatically, in accordance
with Schedule B; or
(2) For decreases under policies ceded facultatively, the amount of
the risk reinsured to the Reinsurer shall be reduced
proportionately.
C. Policy Exchanges and Other Changes
A policy exchange is a new policy replacing an existing policy where the new
policy is not fully underwritten. Exchanges from one single life policy
reinsured under this Agreement to a different single life policy will be
reinsured on a point-in-scale basis. Likewise, exchanges from one last survivor
policy reinsured under this Agreement to a different last survivor policy will
be reinsured on a point-in-scale basis.
Exchanges from a last survivor policy reinsured under this Agreement with the
Last Survivor Exchange Option Rider or Twenty-Four (24) Month Exchange Rider to
two single life policies will be reinsured, if both risks under the Last
Survivor policy were fully underwritten (and neither was deemed to be
uninsurable) and the total face amount of the two new Single Life policies does
not exceed the face amount of the Last Survivor policy. In this event, the new
Single Life policies shall be reinsured on a point-in-scale basis at the
applicable single life rates. For each new policy after the exchange, the
insurance will continue to be reinsured by the Reinsurer in the same proportions
as set at issue of the original coverage.
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If there is a contractual change in a policy reinsured under this Agreement that
is not subject to full underwriting, other than the changes described above in
Sections A and B, the insurance shall continue to be reinsured with the
Reinsurer in the same proportions as the original coverage and Reinsurance
Premiums for contractual changes shall be calculated on a point-in-scale basis.
The Ceding Company shall notify the Reinsurer of any such changes in policies
reinsured under this Agreement in its monthly reinsurance reports.
Exchanges made from a policy not reinsured under this Agreement shall not be
reinsured under this Agreement.
D. Policy Terminations and Lapses
If a policy reinsured under this Agreement terminates, the reinsurance for the
risk will terminate as of the effective date of policy termination. For a policy
terminated due to the expiry of any grace period for an unpaid amount, the
effective date of termination for such policy will be the date such unpaid
amount was first due.
If a policy reinsured under this Agreement lapses to extended term insurance
under the terms of that policy, the corresponding reinsurance on the reinsured
policy will continue on the same basis as the original reinsurance until the
expiry of the extended term period.
If a policy reinsured under this Agreement lapses to reduced paid-up insurance
under the terms of that policy, the amount of the corresponding reinsurance on
the reinsured policy will be reduced according to the terms of Section B.2.
If the Ceding Company allows a policy reinsured under this Agreement to remain
in force under its automatic premium loan provisions, the corresponding
reinsurance on the reinsured policy will continue unchanged and in force as long
as such provisions remain in effect, except as otherwise provided in this
Agreement.
E. Reduction in Retained Coverage on a Life
If any portion of the aggregate amount of insurance retained by the Ceding
Company or its affiliates on an individual life reduces or terminates, the
Ceding Company or its affiliates will recalculate its retention on any remaining
risk(s) in force on that life. The Ceding Company or its affiliates will not be
required to retain an amount in excess of its retention limit for the age,
mortality rating, and risk classification based on the applicable retention
limit that was in effect at the time of issue for any risk. Unless provided for
otherwise in the applicable reinsurance agreements, the Ceding Company or its
affiliates will first recalculate the retention on the risk(s) having the same
mortality rating as the terminated risk(s). Order of recalculation will
secondarily be determined by effective date of the risk, oldest first.
F. Multiple Reinsurers
If reinsurance of a risk is shared by more than one reinsurer, the Reinsurer's
percentage of any increased or reduced reinsurance will be the same as its
initial percentage of the reinsurance for that risk unless specified otherwise
in Schedule B or agreed upon by the Reinsurer.
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G. Mortality Rating Changes
On Facultative Reinsurance, if the Ceding Company wishes to reduce the mortality
rating or otherwise improve the risk class, such change shall be subject to the
Reinsurer's approval. On Automatic Reinsurance, the Reinsurer shall accept this
change if the change qualifies under the underwriting practices and guidelines
described in Schedules C, D, or E, as applicable.
H. Rescission of Policy Coverage Prior to Death Claim
If a misrepresentation, misstatement, or omission on an application results in
the Ceding Company's rescission of coverage, the Reinsurer shall refund to the
Ceding Company any Reinsurance Premiums it received on that coverage. This
refund shall be in lieu of any and all other reinsurance benefits payable on
that coverage under this Agreement. The Reinsurer shall also reimburse the
Ceding Company for its proportionate share of any non-routine expenses incurred
by the Ceding Company in connection with the rescission. Such non-routine
expenses shall include the costs of investigations and of obtaining financial
and medical reports; they would not include the compensation of salaried
officers and employees of the Ceding Company.
The Ceding Company shall promptly notify the Reinsurer in the event a rescission
is challenged by legal action. The Ceding Company shall also furnish to the
Reinsurer copies of all information related to such action.
Recognizing the urgent nature of these communications, within eight (8) business
days of receipt of such information, the Reinsurer shall notify the Ceding
Company in writing of the Reinsurer's decision whether or not it shall
participate in the defense of the rescission. If the Reinsurer does not respond
to the Ceding Company within such eight (8) business day period, the Reinsurer
will be deemed to have elected to participate in the defense of the rescission.
If the Reinsurer elects or is deemed to have elected to participate in the
defense of the rescission, the Reinsurer shall also reimburse the Ceding Company
for its proportionate share of court costs and legal expenses incurred by the
Ceding Company in connection with the defense of the rescission of coverage.
If a rescission of policy coverage is reversed and the policy coverage is
restored to in-force status, any related reinsurance coverage under this
Agreement shall also be restored upon the Ceding Company's payment to the
Reinsurer of all applicable Reinsurance Premiums.
ARTICLE XI
POLICY REINSTATEMENT
If a policy reinsured under this Agreement lapses or terminates, and is later
reinstated under the Ceding Company's terms and rules, the Reinsurer will
reinstate the reinsurance as follows:
A. Procedure to Reinstate Reinsurance
If the policy being reinstated was reinsured on an automatic basis under this
Agreement, or if the policy being reinstated was reinsured on a facultative
basis under this Agreement and the reinstatement occurs less than ninety (90)
days after the policy has lapsed or
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terminated, the reinsurance cession shall be automatically reinstated.
If the policy being reinstated was reinsured on a facultative basis under this
Agreement and the reinstatement occurs ninety (90) days or more after the policy
has lapsed or terminated, copies of the application for reinstatement, any
personal declaration or medical examination, and any other underwriting
documents that the Ceding Company routinely requires (collectively,
"Underwriting Information") shall be forwarded by the Ceding Company to the
Reinsurer, together with the request for reinstatement of the reinsurance. The
Reinsurer shall notify the Ceding Company promptly of its acceptance or
declination of the request for reinstatement.
The Reinsurer reserves the right to request any available Underwriting
Information on any reinstatement.
Reinsurance Premiums for a reinstated policy will be calculated on a
point-in-scale basis.
B. Cost to Reinstate Reinsurance
Upon reinstatement of reinsurance under this Article, the Ceding Company shall
pay the Reinsurer Reinsurance Premiums in the same manner as the Ceding Company
received corresponding policy charges under the policy for the period of lapse.
The Reinsurer reserves the right to charge the Ceding Company interest on such
Reinsurance Premiums in accordance with Section XXII.P.
C. Nonforfeiture Reinsurance Termination
If the Ceding Company reinstates a policy that is reinsured while under an
extended term or reduced paid-up nonforfeiture option, then reinsurance under
such nonforfeiture option will terminate upon policy reinstatement.
ARTICLE XII
CLAIMS
A. Liability for Claims
The Ceding Company is responsible for the settlement of claims on policies
reinsured under this Agreement. It is the Ceding Company's sole decision to
determine whether a claim is payable under a policy. The Ceding Company shall
operate in good faith and adjudicate claims on policies reinsured under this
Agreement as if there were no reinsurance. All claim settlements on policies
reinsured hereunder will be subject to the terms and conditions of the
particular policy, the applicable statutory requirements, and the standard claim
practices of the Ceding Company. The Ceding Company's decision to pay a claim,
provided the Ceding Company has complied with the terms of this Agreement, shall
be binding on the Reinsurer, and the Reinsurer shall be liable for its portion
of the reinsurance on that risk, as described in Schedule B.
B. Notification of Claims
The Ceding Company shall promptly notify the Reinsurer when it is advised of a
death claim on coverage reinsured under this Agreement.
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C. Claim Payment
1. Proofs
If a death claim is made under a risk reinsured under this Agreement, the Ceding
Company shall provide the Reinsurer with copies of proof(s) of death of the
insured(s), proof of claim payment, and the claimant's statement (collectively
"Proofs"). Copies of claim files, underwriting files and other documents
relating to a claim payment under this Agreement shall be furnished to the
Reinsurer upon written request.
2. Payment of Reinsurance Proceeds
The Reinsurer shall pay the Ceding Company reinsurance proceeds on claims for
which it is liable, on claims made under policies eligible for reinsurance under
this Agreement. The due date for such payment is the date thirty (30) days after
the date that the Reinsurer has received the Proofs and other information
reasonably requested by the Reinsurer.
The Reinsurer shall also reimburse the Ceding Company for its proportionate
share of non-routine claims expenses (defined below in Section G) and any
interest paid by the Ceding Company on such claims, such proportion based on the
Reinsurer's proportionate share of the Total Net Amount at Risk of the coverage,
as defined in Schedule B. Interest paid by the Ceding Company on such claims
shall be in accordance with the policy provisions and applicable state
requirements.
Payment of reinsurance proceeds will be made to the Ceding Company in a single
sum, regardless of the Ceding Company's mode of settlement with the payee under
the policy.
3. Claim Balances in Default
If the Reinsurer is delinquent by more than thirty (30) days on an undisputed
amount due to the Ceding Company relating to a claim:
a. The Ceding Company shall have the right to charge interest on
delinquent amounts in accordance with Section XXII.P;
b. The Ceding Company shall have the right to offset such amount,
including any accrued interest charged by the Ceding Company, from
any amount due the Reinsurer in accordance with Article XVII; and
c. To the extent there is an insufficient balance from which to offset
such amounts, the Ceding Company shall have the right to recapture
the remaining reinsurance under this Agreement, as described in
Article XVI, provided the Ceding Company has given the Reinsurer
ninety (90) days advance written notice of its intent to recapture
and the Reinsurer has failed to pay the net amount due, including
any accrued interest charged by the Ceding Company, by the end of
such notice period. In no event shall recapture be construed to be
the exclusive remedy of the Ceding Company.
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D. Contested Claims
1. The Ceding Company shall promptly notify the Reinsurer of its intent to
deny, reduce, compromise, contest, litigate, or assert defenses against
(collectively, "Contest") a claim on a risk reinsured under this Agreement. The
Ceding Company shall also furnish all information material to such action.
Recognizing the urgent nature of these communications, within eight (8) business
days of receipt of all such information (the "Contested Claim Review Period"),
the Reinsurer shall notify the Ceding Company in writing of the Reinsurer's
decision whether or not it shall participate in the Contest. If the Reinsurer
does not respond to the Ceding Company within the Contested Claim Review Period,
the Reinsurer will be deemed to have elected to participate in the Contest.
2. If the Reinsurer elects or is deemed to have elected to participate in the
Contest, then:
a. The Ceding Company will advise the Reinsurer of all significant
developments, including notice of legal proceedings initiated in
connection with the contested claim at reasonable intervals until
the claim is resolved;
b. The Reinsurer shall pay its proportionate share of the settlement of
the claim, such proportion based on the Reinsurer's proportionate
share of the Total Net Amount at Risk of the coverage, as defined in
Schedule B, and in accordance with Article XIII; and
c. The Reinsurer shall also share in the non-routine claims expenses
(defined below in Section G) and Extra-Contractual Obligations, as
defined in Article XIII, associated with the Contest in the same
proportion as stated above in Paragraph b.
3. If the Reinsurer declines to participate in the Contest of the claim, then:
a. The Reinsurer shall release all of its liability under this
Agreement for the claim by paying the Ceding Company the full amount
of its reinsurance coverage under this Agreement for the claim as
though there were no Contest and its proportionate share of
non-routine claims expenses (defined below in Section G) incurred to
the date on which the Reinsurer notifies the Ceding Company that it
declines to be a party to the action, in the same proportion as
stated above in Paragraph 2.b; and
b. The Reinsurer shall not share in any subsequent increase or decrease
in liability for the claim.
4. The Reinsurer will not recommend to the Ceding Company to contest a claim.
E. Misstatement of Age or Sex
If the amount of insurance provided by the policy or policies reinsured under
this Agreement is increased or decreased because of misstatement of age or sex
that is established after the death of the insured (or the second death in the
case of a last survivor policy), the Reinsurer will share with the Ceding
Company in this increase or decrease of insurance in proportion to the
Reinsurer's share of the Total Net Amount at Risk, as defined in Schedule
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B. The amount will be adjusted from the inception of the policy, and any
difference in amounts due between the Parties under this Agreement will be
settled without interest. The Reinsurer's proportionate share will be equal to
share of the Total Net Amount at Risk of the increase or decrease, as defined in
Schedule B.
F. Return of Premium for Misrepresentations and Suicides
1. If a misrepresentation, misstatement, or omission on an application, or the
death of an insured by suicide, results in the Ceding Company returning the
policy premiums (or monthly deductions) to the policy owner rather than paying
the death benefits under a risk reinsured under this Agreement, the Reinsurer
shall refund to the Ceding Company all of the Reinsurance Premiums it received
on that coverage without interest. This refund paid by the Reinsurer shall be in
lieu of any and all other reinsurance benefits payable on that risk under this
Agreement.
2. In addition, the Reinsurer shall pay its proportionate share of reasonable
third-party investigation and legal expenses connected with the Ceding Company's
decision to return the policy premiums (or monthly deductions) as described
above in Section F.1.
G. Claims Expenses
1. Routine Claims Expenses
The Ceding Company shall pay routine expenses incurred in connection with
settling claims. These expenses may include the compensation of agents and
employees, and the expense of routine investigations.
2. Non-Routine Claims Expenses
The Reinsurer will participate in non-routine claims expenses, defined as the
expenses incurred by the Ceding Company in connection with the Contest, or
potential Contest, of a claim. These non-routine claims expenses may include
court costs and investigation, autopsy and legal expenses; they would not
include the compensation of salaried officers and employees of the Ceding
Company. However, if the Reinsurer declines to participate in the Contest of a
claim as described above in Section D.3, the Reinsurer will not share in any
non-routine expenses for the claim that are incurred after the date of the
Reinsurer's release.
3. Claims expenses do not include expenses incurred by the Ceding Company as a
result of a dispute or contest arising out of conflicting claims of entitlement
to policy proceeds.
ARTICLE XIII
EXTRA-CONTRACTUAL OBLIGATIONS
In no event will the Reinsurer have any liability for any Extra-Contractual
Obligations that are awarded against the Ceding Company as a result of acts,
omissions, or course of conduct committed solely by the Ceding Company with no
involvement of the Reinsurer in connection
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with the business reinsured under this Agreement. The Reinsurer will, however,
to the extent permitted by law, pay its share of Extra-Contractual Obligations
awarded against the Ceding Company in connection with the business reinsured
under this Agreement if the Reinsurer agreed in writing to the act or course of
conduct of the Ceding Company that resulted in the assessment of such damages.
For the purposes of this Agreement, "Extra-Contractual Obligations" shall mean
any punitive, exemplary, compensatory, consequential or other damages paid or
payable by the Ceding Company as a result of an action arising under, relating
to, or in connection with a Contest.
ARTICLE XIV
DAC TAX SECTION 1.848-2(G)(8) ELECTION
The Ceding Company and the Reinsurer jointly agree to the DAC Tax Election
pursuant to Section 1.848-2(g)(8) of the Income Tax Regulations (the "Treasury
Regulations") issued under Section 848 of the Internal Revenue Code of 1986, as
amended (the "Code"). As used in this Article, the terms "net positive
consideration," "specified policy acquisition expenses," and "general deductions
limitation" are defined by reference to Treasury Regulations Section
1.848-2(g)(8) and Code Section 848 as of the Effective Date.
As part of this DAC Tax Election, both Parties agree:
A. That the Party with the net positive consideration for this Agreement for
each taxable year will capitalize specified policy acquisition expenses with
respect to this Agreement without regard to the general deductions limitation of
Code Section 848(c)(1);
B. To exchange information pertaining to the amount of net consideration under
this Agreement each year to ensure consistency; and
C. That the method and timing of the exchange of this information shall be as
follows:
1. The Ceding Company shall submit a schedule to the Reinsurer by May 1 of each
year with its calculation of the net consideration for the preceding calendar
year.
2. The Reinsurer shall, in turn, complete the schedule by indicating acceptance
of the Ceding Company's calculation of net consideration or shall note in
writing any discrepancies, and then return the completed schedule to the Ceding
Company by June 1 of each year.
3. If there are any discrepancies between the Ceding Company's and the
Reinsurer's calculations of net consideration, the Parties shall act in good
faith to resolve these discrepancies in a manner that is acceptable to both
Parties by July 1 of each year.
4. Each Party shall attach the final schedule to its respective U.S. federal
income tax return for each taxable year in which consideration is transferred
under this Agreement. The schedule shall identify this Agreement, shall restate
the election described in this Article, and shall be signed by a duly authorized
representative of each Party.
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D. This DAC Tax Election shall be effective on the Effective Date of this
Agreement and shall be effective for all years for which this Agreement remains
in effect.
E. The Ceding Company and the Reinsurer each represent and warrant that they
are subject to U.S. taxation under the provisions of either Subchapter L of
Chapter 1 or Subpart F of Part III of Subchapter N of Chapter 1 of the Code.
F. Should the Reinsurer breach the representation and warranty of tax status
set forth in this Article, the Reinsurer agrees to indemnify and hold the Ceding
Company, its directors, officers, employees, agents, and shareholders harmless
from any and all liability, loss, damages, fines, penalties, interest, and
reasonable attorney's fees that the Ceding Company, its directors, officers,
employees, agents, and shareholders may sustain by reason of such breach.
ARTICLE XV
INSOLVENCY
A. Insolvency of the Ceding Company
In the event of the insolvency of the Ceding Company, as determined by the
regulatory agency responsible for such determination, all reinsurance will be
payable by the Reinsurer on the basis of the liability of the Ceding Company
under policies reinsured under this Agreement directly to the liquidator,
receiver or statutory successor of the Ceding Company, without diminution
because of the insolvency of the Ceding Company.
In the event of the insolvency of the Ceding Company, the liquidator, receiver
or statutory successor will give written notice to the Reinsurer of all pending
claims against the Ceding Company on any policy reinsured under this Agreement
within a reasonable time after such claim is filed in the insolvency proceeding.
While a claim is pending, the Reinsurer may investigate and interpose, at its
own expense, in the proceeding where such claim is to be adjudicated, any
defense or defenses which it may deem available to the Ceding Company or its
liquidator, receiver or statutory successor.
The expenses incurred by the Reinsurer will be chargeable, subject to court
approval, against the Ceding Company as part of the expense of the insolvent the
Ceding Company 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 the
Reinsurer. Where two or more reinsurers are involved in the same claim and a
majority in interest elect to interpose a defense or defenses to any such claim,
the expense will be apportioned in accordance with the terms of this Agreement
as though such expense had been incurred by the Ceding Company.
B. Insolvency of the Reinsurer
In the event of Reinsurer's insolvency, as determined by the regulatory agency
responsible for such determination, the Ceding Company may recapture all of the
inforce policies reinsured under this Agreement by giving written notice to the
Reinsurer of its intent to do so. The effective date of recapture will be no
earlier than the effective date of the Reinsurer's insolvency.
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ARTICLE XVI
RECAPTURE OF REINSURED BUSINESS
The Ceding Company has the right to recapture risks reinsured under this
Agreement as described under the following circumstances:
(1) If the Ceding Company does not agree with the rate increase on a Plan of
Insurance in accordance with Section VI.E;
(2) With sixty (60) days advance written notice to the Reinsurer, for risks
reinsured under this Agreement for at least twenty (20) years;
(3) If the Reinsurer fails to provide security in accordance with Section
VIII.C;
(4) If the Reinsurer is delinquent on payment of an undisputed net amount due
in accordance with Section XII.C.3; or
(5) If the Reinsurer is deemed insolvent, in accordance with Article XV.
In the event recapture is elected based on Section A (1) or (2) described above,
no recapture fees are due and no reserves will be transferred.
In the event recapture is based on any of the other circumstances described in
Section A above:
1. The Ceding Company and the Reinsurer shall mutually agree upon the recapture
terms -- however, if no such agreement can be reached, an independent actuary
shall be hired to determine the value of the business to be recaptured. The
costs of the independent actuary will be shared equally between the Ceding
Company and the Reinsurer;
2. The value of the business to be recaptured will be based on reasonable
actuarial assumptions as to interest, mortality, and lapse rates; and
3. Other actuarial assumptions and considerations used to value the business to
be recaptured shall include, but not be limited to:
a. Projected future claims costs;
b. Projected future Reinsurance Premiums;
c. Statutory reserve requirements;
d. NAIC risk based capital and/or other capital measures, which are
reflective of statutory capital levels, that should be maintained for
an insurance company with financial strength ratings comparable to
those of the Ceding Company; and
e. Any other considerations considered relevant by the Parties or the
independent actuary.
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ARTICLE XVII
OFFSET
Any undisputed debts or credits, in favor of or against either the Reinsurer or
the Ceding Company, with respect to this Agreement between the Parties, are
deemed mutual debts or credits and may be offset, and only the balance will be
allowed or paid provided the Party that seeks to avail itself of this right of
offset is not in breach of any provision of this Agreement.
To the extent permitted by applicable law, the right of offset will not be
affected or diminished because of the insolvency of either Party.
ARTICLE XVIII
DISPUTE RESOLUTION
In the event that any dispute between the Parties under this Agreement cannot be
resolved to mutual satisfaction, the dispute will first be subject to good-faith
negotiation, as described below, in an attempt to resolve the dispute without
the need to institute formal arbitration proceedings.
Within ten (10) calendar days after one of the Parties has given the other the
first written notification of the specific dispute, each of the Parties will
appoint a designated officer to attempt to resolve the dispute. The designated
officers will meet at a mutually agreeable location as early as possible and as
often as necessary, in order to discuss the dispute and to negotiate in good
faith without the necessity of any formal arbitration proceedings. During the
negotiation process, all reasonable requests made by one officer to the other
for information will be honored. The designated officers will decide the
specific format for such discussions.
If the designated officers cannot resolve the dispute within thirty (30)
calendar days of their first meeting, both Parties agree that they will submit
the dispute to formal arbitration. However, the Parties may agree in writing to
extend the negotiation period for an additional thirty (30) calendar days.
No later than fifteen (15) calendar days after the final negotiation meeting,
the designated officers taking part in the negotiation will give both Parties
written confirmation that they are unable to resolve the dispute, and that they
recommend establishment of formal arbitration in accordance with Article XIX.
ARTICLE XIX
ARBITRATION
It is the intention of the Parties that the customs and practices of the life
and health insurance and life and health reinsurance industries will be given
full effect in the operation and interpretation of this Agreement. The Parties
agree to act in all matters with good faith. However, if, in accordance with
Article XVIII, the Parties cannot mutually resolve a dispute that arises out of
or relates to this Agreement, the dispute will be decided through arbitration as
follows:
An arbitration panel consisting of three past or present officers of life and
health insurance or life and health reinsurance companies not affiliated with
either of the Parties in any way will settle the
Allocated Retention. Pool -- Effective 10/1/2008
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26
dispute. Each Party will appoint one arbitrator within thirty (30) calendar days
of the demand for formal arbitration and the two so appointed shall then appoint
the umpire. If either Party refuses or neglects to appoint an arbitrator within
the thirty (30) calendar days, the other Party may appoint the second
arbitrator. If the two arbitrators cannot agree on the umpire within thirty (30)
calendar days after both arbitrators have been appointed, each of the two
arbitrators shall nominate three individuals within ten (10) calendar days
thereafter. Each arbitrator shall then decline two of the nominations presented
by the other arbitrator. The umpire shall be chosen from the remaining two
nominations by drawing lots.
Within thirty (30) calendar days after the appointment of the umpire, the
arbitration panel shall meet and determine timely periods for briefs, discovery
procedures, and schedules for hearings. The arbitration shall take place at a
location determined by the arbitration panel and, insofar as the arbitration
panel looks to the substantive law, it shall consider the laws of the state of
Connecticut. The arbitration panel shall have the power to set all procedural
rules for the arbitration, including the discretion to make any order with
respect to pleadings, discovery, depositions, scheduling, the hearing, reception
of evidence and any other matter whatsoever relating to the conduct of the
arbitration.
Within sixty (60) calendar days after the beginning of the arbitration
proceedings the arbitration panel will issue a written, reasoned, decision on
the dispute and a statement of any award to be paid as a result. The decision
will be based on the terms and conditions of this Agreement as well as the usual
customs and practices of the insurance and reinsurance industry, rather than on
strict interpretation of the law. The decision will be final and binding on both
Parties and there will be no further appeal. Judgment upon the award may be
entered in any court having jurisdiction thereof.
In the absence of a decision to the contrary by the arbitration panel, each
Party shall bear the expense of its own arbitration activities, including, but
not limited to, its appointed arbitrator's fees, outside attorney fees, witness
fees, expenses incurred in the taking or preservation of testimony, and other
related expenses.
The Parties shall jointly and equally bear the expense of the third arbitrator
and other costs directly attended to the arbitration proceeding, provided that
neither Party's liability for such costs shall ever exceed 50% of the total of
such costs, regardless of the other Party's failure to pay.
The Parties may mutually agree to extend any of the periods shown in this
Article.
ARTICLE XX
TERMINATION OF THIS AGREEMENT FOR NEW BUSINESS
A. Either Party may terminate this Agreement, as it applies to the reinsurance
of new policies being issued by the Ceding Company:
(1) immediately upon written notice to the other Party, if that other Party
becomes insolvent as described in Article XV; or
(2) with ninety (90) days advance written notice to the other Party.
B. After termination of this Agreement for new business, the Parties shall
remain liable under the terms of this Agreement for:
(1) reinsurance of policies that becomes effective prior to such termination of
this
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27
Agreement;
(2) reinsurance of policies with an application date on or before the effective
date of termination; and
(3) reinsurance that becomes effective as a result of coverage changes
described in accordance with Article X.
C. The Ceding Company shall continue to cede, and the Reinsurer shall continue
to accept, any new business issued prior to the termination of this Agreement.
ARTICLE XXI
CONFIDENTIALITY
During the course of performance under this Agreement, a Party (the "Owner") or
its agent may make available to the other Party (the "Recipient") or its agent
certain technical materials such as manuals, policyholder lists, data files and
the data contained therein, systems, forms, methods, processes and procedures,
and other information or data (collectively, "Proprietary Information") that is
proprietary or trade secret in nature. Proprietary Information shall
specifically exclude information that was previously known to the Recipient or
that is or was publicly disclosed to the Recipient by any party not known by the
Recipient to be under a duty to retain such information as confidential.
Each Party acknowledges that all Proprietary Information is offered for the sole
purpose of performing its obligations under this Agreement. Further, each Party
agrees that the Owner is deemed to be the sole owner of such Proprietary
Information and that any use, furnishing, disclosure, dissemination,
publication, or revealing of Proprietary Information in any way by the Recipient
to any person, organization, firm or government agency contrary to applicable
law or to the terms of this Agreement, shall obligate the Recipient to indemnify
and hold the Owner harmless from any damages, litigation, liability, claimed
liability, claims, and expenses -- including reasonable attorneys' fees and
incidental expenses -- resulting from any such improper use, furnishing,
disclosure, or revealing of Owner's Proprietary Information, whether occurring
during the term of this Agreement or thereafter, except to the extent that any
such loss or damage was caused or contributed to by the Owner. The Ceding
Company acknowledges that the Reinsurer can aggregate the Ceding Company's
Proprietary Information with other companies reinsured with the Reinsurer as
long as the data cannot be identified as belonging to the Ceding Company.
The Parties shall hold all Proprietary Information in trust and confidence and
shall use Proprietary Information only for the purposes of this Agreement.
Unless required by applicable law, neither Party shall disclose any Proprietary
Information without the express written consent of the other Party.
Notwithstanding the foregoing, the Parties may disclose Proprietary Information
to their Representatives who need such Proprietary Information to carry out the
purposes for which it was disclosed -- it being understood that the Party
disclosing the Proprietary Information shall inform its Representatives of the
confidential nature of the Proprietary Information, shall cause such
Representatives to observe the terms of this Agreement, and shall be liable to
the Owner for any breach of this Agreement by itself or by any of its
Representatives. The term "Representatives," as used in this Agreement, shall
mean a Party's directors, officers, employees, retrocessionaires, partners,
agents, other controlling persons, and professional advisors, including but not
limited to attorneys, accountants, actuaries, auditors and intermediaries.
In the event the Recipient or its Representative breaches this obligation, the
Owner shall have all
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28
rights and remedies available under law and equity, including the right to
protect its Proprietary Information by injunction, without proving economic
loss, which the Parties acknowledge and concede is appropriate and necessary to
protect the value of the Owner's Proprietary Information.
Notwithstanding anything herein to the contrary, except as reasonably necessary
to comply with applicable securities laws, each Party (and each Representative
of such Party) may consult any tax advisor regarding the U.S. federal income tax
treatment or tax structure of the transaction ("Tax Treatment"), and disclose to
any and all persons, without limitation of any kind, the Tax Treatment and all
materials of any kind (including opinions or other tax analyses) that are
provided to such Party relating to the Tax Treatment. This permission to
disclose the Tax Treatment is limited to any facts relevant to the Tax Treatment
and does not include information relating to the identity of the Parties.
In the event that any Party is served with a subpoena, request for production of
documents, other legal process, or request by regulator or arbitration panel,
such Party shall immediately notify, and send a copy of such subpoena, other
legal process, or regulatory request to, the other Party so that the other Party
may reasonably determine whether any of its Proprietary Information may be
included in the data required to be produced. Such other Party may, at its own
expense, take such legal action as it deems necessary to preserve the
confidentiality of its Proprietary Information or may waive its rights to do so.
To the extent possible, Proprietary Information shall be promptly returned to
the Owner or destroyed, as the Owner may direct, upon the termination of this
Agreement or, with respect to any particular data files and data, on such
earlier date that the same are no longer required by Recipient in order to
continue to perform its obligations hereunder. The Recipient will not be
obligated to destroy any Proprietary Information that is retained for back-up or
archiving purposes, in accordance with a document retention policy, or that the
Recipient, in the opinion of counsel, is legally compelled to keep and store.
The Parties agree to immediately notify each other, in writing, of all
circumstances surrounding any known or potential access to, or possession of,
Proprietary Information by any person other than persons authorized by this
Agreement. Such notice shall be provided under Article XXIII and shall include,
but not be limited to, the name and address of each such unauthorized person.
This Article shall survive the termination of this Agreement.
ARTICLE XXII
GENERAL PROVISIONS
A. Policy Forms
When requested, the Ceding Company will furnish the Reinsurer with a sample copy
of each policy and rider form that applies to the Plans of Insurance to be
reinsured hereunder.
B. Severability
If any provision of this Agreement shall be declared or found to be illegal,
invalid, unenforceable, or void, the Parties shall be relieved of their
obligations under such provision. The validity of the remaining provisions shall
not be affected. To the extent possible, the Parties shall work in good faith to
amend this Agreement to address such provision.
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29
C. Survival
All provisions of this Agreement shall survive its termination to the extent
necessary to carry out the purposes of this Agreement or to ascertain and
enforce the Parties' rights or obligations hereunder existing at the time of its
termination.
D. Non-Waiver
No act, delay, omission, course of dealing or prior transaction by or between
the Parties to this Agreement shall constitute a waiver of any right or remedy
under this Agreement. No waiver of any right or remedy under this Agreement
shall be construed to be a waiver of any other or subsequent right or remedy
under this Agreement.
E. Currency
The Reinsurance Premiums and benefits payable under this Agreement will be
payable in United States Dollars.
F. Definitions of Terms in Policies
Terms that are not defined in this Agreement will have the meaning conferred on
them in the underlying reinsured contracts. Such terms include, but may not be
limited to: Monthly Activity Date, Monthly Deduction Amount, Account Value, and
Policy Protection Account.
G. Governing Law
This Agreement shall be governed by the laws of the State of Connecticut,
exclusive of the rules with respect to conflicts of law.
H. Assignment and Transfer
The rights, duties and obligations of the Parties under this Agreement shall not
be assigned or transferred, in whole or in part, except as otherwise provided
herein, by either Party without the prior written consent of the other Party.
Such consent shall not be unreasonably withheld. This provision is not intended
to preclude the Reinsurer from retroceding the reinsurance on an indemnity
basis, nor to prevent successors in interest from having rights and obligations
under this Agreement.
I. Execution of Agreement in Counterparts
This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original, but all of which shall constitute one and the same
instrument.
J. Force Majeure
Neither Party shall be liable for any delay or non-performance of any covenant
contained herein nor shall any such delay or non-performance constitute a
default hereunder, or give rise to any liability for damages if such delay or
non-performance is caused by an event of "Force Majeure." As used herein, the
term "Force Majeure" means: an event, explosion, action of the elements, strike
or other labor relations problem; restriction or restraint imposed by law, rule,
or regulation of any public authority, whether federal, state or local, and
whether civil or military; act of any military authority or international
terrorist group; interruption of transportation, communication, or transmission
facilities; or any other cause
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30
that is beyond the reasonable control of such Party and that, by the exercise of
reasonable diligence, such Party is unable to prevent. The existence of any
event of Force Majeure shall extend the term of performance on the part of such
Party to complete performance in the exercise of reasonable diligence after the
event of Force Majeure has been removed.
K. Anti-Money Laundering
It is the intention of the Ceding Company and the Reinsurer to comply with all
applicable laws, statutes, and regulations relating to anti-money laundering and
anti-terrorism financing activities. The Ceding Company is responsible for
compliance with all such laws, statutes, and regulations applicable to the sale
and solicitation of policies reinsured under this Agreement, including, but not
limited to, the requirements of the USA PATRIOT Act and the United States
Department of the Treasury's Office of Foreign Assets Control (hereinafter
referred to as "OFAC"). Should either Party receive information that a policy
reinsured under this Agreement may insure, be owned by, be transferred or
payable to, or be brokered or sold by a Specially Designated National, as such
term is defined by OFAC (hereinafter referred to as "SDN"), that Party shall
provide such information to the other Party. In no event shall the Reinsurer be
liable for reinsurance of a risk under this Agreement unless the Ceding
Company's issuance of life insurance coverage for such risk met the OFAC
regulatory requirements. No reinsurance claim shall be payable on a policy
insuring, owned by, or payable to a SDN that does not hold a valid OFAC license
at the time of death of the insured.
L. Material Compliance Provision
The Parties represent that, to the best of their knowledge, they are in
substantial compliance with all state and federal laws material to the business
reinsured under this Agreement. In the event that either Party is found to be
noncompliant with any law material to this Agreement, this Agreement will remain
in effect and the non-compliant Party will indemnify the other Party for any
direct loss that Party suffers as a result of the noncompliance and, to the
extent practicable, will remedy the noncompliance as soon as possible.
M. Representations and Warranties and Good Faith
The Parties have entered into this Agreement in reliance upon mutual
representations and warranties.
Each Party represents to the other that, as of the Effective Date of this
Agreement, it was solvent on a statutory basis in all states in which it is
licensed to transact business.
The Ceding Company represents and warrants to the Reinsurer that it provided the
Reinsurer with a request for proposal and supporting materials associated
therewith on or about January 21, 2008 (the "Request for Proposal"), and
intended the Reinsurer to rely on the same, as well as the Reinsurer's
expertise, knowledge, and experience in the life insurance and life reinsurance
industries, in its decision to enter into this Agreement.
The Ceding Company represents to the Reinsurer that, to the best of its
knowledge, as of the date it executed this Agreement, it was not aware of any
errors in the Request for Proposal and that the Request for Proposal at the time
it was provided to the Reinsurer was complete in all material respects.
In addition, the Parties agree that the principles of good faith traditional to
life reinsurance shall be adhered to in the performance of this Agreement, in
the underwriting and
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31
administration of the business reinsured hereunder, and in their dealing with
each other. Pursuant to such principles, the Ceding Company shall inform the
Reinsurer in writing with thirty (30) days advance notice of any material change
impacting the Reinsurer's liability in the underwriting (including changes to
InfoBase), administration, or claims practices for the Reinsurer's consideration
and written approval.
Any proposed changes to the Ceding Company's choice of underwriting manual, or
the other items included in Schedule E shall be submitted to the Reinsurer's
Chief Medical Director with thirty (30) days advance written notice for approval
prior to implementation. If the Reinsurer does not respond in writing within
this thirty (30) day period, it shall be presumed that the Reinsurer is
agreeable to such modifications.
If the Reinsurer does not consent to any such changes, the Reinsurer reserves
the right to decline reinsurance coverage on such policies and/or negotiate a
corresponding adjustment of the reinsurance terms and conditions for the risks
reinsured hereunder.
N. Taxes
The Reinsurer will not reimburse the Company for premium taxes or other
insurance-related taxes paid on business reinsured under this Agreement.
O. Inspection of Records
Each Party or its authorized representatives will have the right, at any
reasonable time with at least thirty (30) days advance notice, to inspect, audit
and review the other Party's documents and records that relate to this Agreement
and the business that is the subject matter of this Agreement.
P. Short-Term Interest
For certain payments as specified under this Agreement that are due from one
Party to the other Party, the Party owed has the right to charge the other Party
interest on those payments. If that right is exercised, such interest will be
computed, from the date the payment is due to the date payment is made, using
the short-term interest method.
Interest under the short-term interest method will accrue at an effective annual
rate set equal to the lesser of (i) a rate equal to the sum of 50 basis points
(0.50%) plus the annualized Three Month London Interbank Offering Rate (LIBOR)
published in the Wall Street Journal (or, if not available, a comparable
publication agreed upon by the Parties) on the due date of the payment, if the
due date is a business day, or if not, on the first business day following the
due date, or (ii) the maximum annual rate allowed by law for this purpose in the
governing-law state specified above in Section G.
The effective annual interest rate to be used under the short-term interest
method for a payment due will be reset every three months after such due date,
as necessary, if the payment accrues interest for a period longer than three
months. If multiple payments are accruing interest under one computation, then
the rate will be reset every three months after the due date of the earliest
such payment, and the reset rate for each successive period shall apply to
accrue interest on all such payments accrued during such period.
Q. Expenses
The Ceding Company shall pay the expense of all medical examinations, inspection
fees,
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32
and other charges in connection with the issuance of the insurance reinsured
under this Agreement.
ARTICLE XXIII
NOTICES AND COMMUNICATIONS
A. Communications
For the purpose of this Agreement, communications associated with material
breach of this Agreement, rescission of policies challenged by legal action,
termination or recapture of this Agreement, demand for arbitration or
negotiation under this Agreement, a change in or loss of the Reinsurer's
licensing or and/or confidentiality and compliance provisions set forth in this
Agreement shall be addressed as follows:
If to the Ceding Company: If to the Reinsurer:
Assistant Vice President Executive Vice President
Individual Life Actuarial & Risk Mgmt Traditional Markets
Hartford Life Insurance Company Transamerica Reinsurance Company
000 Xxxxxxxxx Xxxxxx 000 Xxxxx Xxxxx Xxxxxx, Xxx 000
Xxxxxxxx, XX 00000 Xxxxxxxxx, XX 00000
Facsimile:(000) 000-0000 Facsimile:(000) 000-0000
Copies (which shall not constitute Copies (which shall not constitute
notice) to: notice) to:
Corporate Reinsurance Chief Actuary
Hartford Life Insurance Company Transamerica Reinsurance Company
000 Xxxxxxxxx Xxxxxx 000 Xxxxx Xxxxx Xxxxxx, Xxx. 000
Xxxxxxxx, XX 00000 Xxxxxxxxx XX 00000
Facsimile:(000) 000-0000 Facsimile:(000) 000-0000
Reinsurance Counsel General Counsel
Hartford Life Insurance Company Reinsurance Division
000 Xxxxxxxxx Xxxxxx 000 Xxxxx Xxxxx Xxxxxx, Xxx. 000
Xxxxxxxx, XX 00000 Xxxxxxxxx, XX 00000
Facsimile:(000) 000-0000 Facsimile:(000) 000-0000
or such other address or facsimile number as one Party may provide to the other
Party. The foregoing shall not preclude the effectiveness of actual written
notice given to a Party at any address or by any means.
All other communications will be sent to the contact either (a) provided by the
receiving party, or (b) identified in the course of routine administration of
this Agreement.
B. Notices
All notices with regard to this Agreement shall be in writing and shall be
deemed to have been duly given (i) on the date when delivered personally; (ii)
on the date sent by facsimile transmission or electronic mail with proof of
delivery; or (iii) on the earlier of the date
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33
received and the date three (3) business days after any such notice was sent by
nationally recognized courier or by first-class U.S. mail, postage prepaid,
return receipt requested.
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34
EXECUTION
In witness whereof, the Parties, by their duly authorized representatives, have
executed this Agreement in duplicate:
TRANSAMERICA LIFE INSURANCE COMPANY
By: /s/ Xxxxx Xxxxxxxxxx Attest: /s/ Xxxxx Xxxxxxxxx
--------------------------------- -------------------------------
Name: Xxxxx Xxxxxxxxxx Name: Xxxxx Xxxxxxxxx
Title: [ILLEGIBLE] Senior Vice President Title: 2nd Vice President
Date: 12-28-09 Date: 12.28.09
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxxxxx X. Xxxxxxxxx
-------------------------------- --------------------------------
Xxxxxx X. Xxxxxxxx, FSA, XXXX Xxxxxxx X. Xxxxxxxxx, FSA, MAAA
Vice President Assistant Vice President and
Actuary
Date: 12/30/2009 Date: 12/31/2009
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35
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
SINGLE LIFE PLANS OF INSURANCE
[Redacted]
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE*
----------------------------------------------------------------------------------------------
Stag UL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Bicentennial UL Founders 2001 CSO M/F S/NS Ultimate ANB A
Hartford UL CV 1980 CSO M/F S/NS Ultimate ALB A
Stag Wall Street VUL 1980 CSO M/F S/NS Ultimate ALB A
Stag Protector II VUL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Leaders VUL Legacy 2001 CSO M/F Composite Ultimate ANB A
Stag Accumulator II VUL 1980 CSO M/F Unismoke Ultimate ALB A
Hartford Leaders VUL Liberty (a) 1980 CSO M/F Unismoke Ultimate ANB A
Hartford Leaders VUL Liberty (b) 2001 CSO M/F Composite Ultimate ANB A
Life Solutions II UL (a) 1980 CSO M/F S/NS Ultimate ALB A
Life Solutions II UL (b) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Advanced Universal Life 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Freedom 2001 CSO M/F S/NS Ultimate ANB B
Hartford Quantum II VUL (a) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Quantum II VUL (b) 2001 CSO M/F S/NS Ultimate ANB A
Hartford ExtraOrdinary Whole Life (a) 2001 CSO M/F S/NS Ultimate ALB A
Hartford ExtraOrdinary Whole Life (b) 2001 CSO M/F S/NS Ultimate ANB A
RIDERS PROVIDING DEATH BENEFITS RIDERS THAT PROVIDE ADDITIONAL BENEFITS
THAT ARE ELIGIBLE FOR REINSURANCE: BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Accidental Death Benefit (ADB) Rider
Primary Insured Term Rider Accelerated Benefit Rider (ABR)
Other Covered Insured Term Life LifeAccess Accelerated Ben. Rider
Rider (LAABR)
Cost of Living Adjustment (COLA) Policy Continuation Rider
Rider
Policy Protection Rider (PPR)
Enhanced No Lapse Guarantee Rider
NOTE:NAR Type for term riders above Lifetime No Lapse Guarantee Rider
is C.
For COLA Rider, NAR Type follows Guar. Min. Accum. Benefit (GMAB) Rider
Base Policy to which it is Paid-Up Life Insurance Rider
attached.
Conversion Option Rider
Overloan Protection Rider
Waiver of Specified Amount (WSA) Rider
Waiver of Monthly Deductions (WMD)
Rider
Children's Life Insurance Rider
Foreign Travel Exclusion Rider
Estate Tax Repeal Benefit Rider
Modified Surrender Value Rider
Cash Surrender Value Endorsement
Automatic Premium Payment Rider
Additional Premium Rider
Qualified Plan Rider
------------
* NAR Type is described in Schedule B.
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SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Primary Insured Term Rider: Provides additional level term life coverage on the
base policy insured.
Other Covered Insured Term Life Rider: Provides level term life coverage on an
insured other than the base policy insured.
Cost of Living Adjustment (COLA) Rider: Provides for biennial face amount
increases, without underwriting, based on increases in the Consumer Price Index.
The maximum amount of any single increase is $50,000. Any increase can be
declined by the policyholder, which stops future increases. Available only at
issue and only for non-substandard issue ages 0 through 60.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Accidental Death Benefit Rider: Pays an additional death benefit if the death on
the insured is caused by a qualifying accident.
Accelerated Benefit Rider: Provides the policyholder up to 100% of the death
benefit, discounted with interest, if the insured's life expectancy is 12 months
or less. After acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
LifeAccess Accelerated Benefit Rider (LAABR): Provides for monthly benefits (up
to 2% of death benefit) if insured meets certain ADL and home-care requirements.
During and after acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
Policy Continuation Rider: Intended to prevent the lapse of highly loaned
policies.
Policy Protection Rider: Protects the death benefit of the base policy and any
primary insured term rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Enhanced No Lapse Guarantee Rider: Provides that the policy will not lapse as
long as cumulative premiums paid less indebtedness less withdrawals are greater
than or equal to the cumulative no lapse guarantee premiums. Length of guarantee
varies by issue age.
Lifetime No Lapse Guarantee Rider: Same as Enhanced No Lapse Guarantee Rider but
with lifetime guarantee.
Guaranteed Minimum Accumulation Benefit (GMAB) Rider: Provides, at the end of
the GMAB Guarantee Period (usually 20 years), that the policy Account Value will
be increased, if necessary, to
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SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
equal the sum of gross premiums paid to that date. There is a small monthly
charge and a minimum cumulative premium requirement to keep the rider in force.
Paid-Up Life Insurance Rider: Similar to the GMAB rider, with the same Guarantee
Period, a monthly charge, and a cumulative premium requirement. At end of the
Guarantee Period, the owner may elect to change coverage to paid-up life using
the Account Value as a 5% NSP to determine the amount of coverage; however, the
amount of coverage will never be lower than the sum of gross premiums paid to
that date. Once elected, premiums are no longer payable.
Conversion Option Rider: During certain policy years and prior to the insured's
attained age 70, the policy may be converted, without evidence of insurability,
to any permanent plan of life insurance the Ceding Company then makes available
for conversions of this policy.
Overloan Protection Rider: Protects a policy from terminating due to overloan.
Waiver of Specified Amount (WSA) Rider: Waives a specified amount monthly while
the insured is disabled.
Waiver of Monthly Deductions (WMD) Rider: Waives monthly deduction amounts while
the insured is disabled.
Children's Life Insurance Rider: Provides level term life coverage for each
child of the insured.
Foreign Travel Exclusion Rider: Provides a limited death benefit (Account Value
less indebtedness) if the insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
Estate Tax Repeal Benefit Rider: Pays the policy Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Modified Surrender Value Rider: Changes the Cash Surrender Value definition (to
equal the Account Value) if the policy is surrendered within 3 years after the
policy issue date.
Cash Surrender Value Endorsement: Provides for enhanced Cash Surrender Value
(equal to the current Account Value) in the event of policy surrender in the
first 4 policy years, unless the policy is exchanged under Section 1035 to
another company's policy.
Automatic Premium Payment Rider: Provides for any Scheduled Premium due and
unpaid by the end of any Policy Grace Period to be paid by an automatic
deduction from the Account Value, if the Account Value exceeds the Guaranteed
Cash Value.
Additional Premium Rider: Allows additional premium amounts to be paid at the
same payment intervals as scheduled premiums.
Qualified Plan Rider: This rider indicates that the policy is owned by a
qualified plan, details the policy owner's reporting responsibilities to the
Ceding Company, and describes features and activities that are unavailable when
the policy is owned by a Qualified Plan.
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
38
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
LAST SURVIVOR PLANS OF INSURANCE
[Redacted]
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE*
---------------------------------------------------------------------------------------------
Hartford Leaders VUL Joint Legacy 2001 CSO M/F S/NS Select & Ultimate ALB A
Hartford Leaders VUL Joint Legacy II 2001 CSO M/F S/NS Select & Ultimate ANB A
Hartford Advanced Last Survivor UL 2001 CSO M/F S/NS Select & Ultimate ALB B
Hartford Bicentennial UL Joint Freedom 2001 CSO M/F S/NS Select & Ultimate ALB B
Hartford Bicentennial UL Joint Freedom II 2001 CSO M/F S/NS Select & Ultimate ANB B
RIDERS PROVIDING DEATH BENEFITS THAT RIDERS THAT PROVIDE ADDITIONAL
ARE ELIGIBLE FOR REINSURANCE BENEFITS BUT THAT ARE NOT ELIGIBLE
FOR REINSURANCE:
Estate Protection Rider (NAR Type is LS Exchange Option Rider
C)
Policy Protection Rider
Estate Tax Repeal Rider
Foreign Travel Exclusion Rider
Guar. Min. Accum. Benefit (GMAB)
Rider
Paid-Up Life Insurance Rider
------------
* NAR Type is described in Schedule X.
XXXXX DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Estate Protection Rider: This rider provides last survivor level term life
insurance on the base policy insureds for three years.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
LS Exchange Option Rider: Allows a Last Survivor policy to be split into two
Single Life policies, without new evidence of insurability, if divorce, business
dissolution, or estate-tax repeal or reduction occurs. The face amount of each
new Single Life policy will equal one half of the Last Survivor policy face
amount. Upon a split, reinsurance will continue at point-in-scale rates for each
single life, as documented in Section X.C. (This rider is not available when one
of the insureds is uninsurable or above Table H.)
Policy Protection Rider: Protects the death benefit of the base policy and any
Estate Protection Rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Estate Tax Repeal Rider: This rider will pay the Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Foreign Travel Exclusion: Provides a limited death benefit (Account Value less
indebtedness) if either insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
GMAB Rider and Paid-Up Life Insurance Rider: Same as Single Life riders.
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
39
SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
AUTOMATIC REINSURANCE: The Ceding Company shall retain its available retention
on each risk, defined below as the Retained Net Amount at Risk, subject to the
applicable Ceding Company's Treaty Retention Limit shown in Exhibit II.
The Reinsurer will automatically reinsure a portion of the remainder of the
risk, called the Reinsured Net Amount at Risk, as defined below in this Schedule
B.
FACULTATIVE REINSURANCE: The Reinsurer will reinsure X% (as determined at issue)
of the Total Net Amount at Risk for the risk.
TOTAL ALLOCATION LIMIT (TAL): As shown in Exhibit II.
CEDING COMPANY'S TREATY RETENTION LIMIT (CCTRL): As shown in Exhibit II.
CEDING COMPANY'S ALLOCATED RETENTION (CCAR): As shown in Exhibit II.
CURRENT RETENTION (CURRRET) = Current amount of life insurance retained by the
Ceding Company and its affiliated companies on the life for in-force life
insurance coverage. (For Last Survivor risks, see the Last Survivor Limits and
Retention Worksheet in Exhibit II.)
REINSURER'S ALLOCATED RETENTION (REINSARET): As shown in Exhibit II.
REINSURER'S ATTACHMENT POINT (REINSAPT): As shown in Exhibit II.
NAR TYPE for the Plan of Insurance to be reinsured under this Agreement, as
shown in Schedule A.
STEP 1 -- DETERMINE TOTAL NET AMOUNT AT RISK FOR THE COVERAGE
TOTAL NET AMOUNT AT RISK (TOTNAR) =
For NAR TYPE A, Death Benefit minus the Account Value.
For NAR TYPE B, Death Benefit minus the Working Reserve, where
Working Reserve = (i) x (ii) / (iii), and
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
40
SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
For NAR TYPE C, Death Benefit.
STEP 2 -- DETERMINE NET AMOUNT AT RISK FOR EACH "LAYER" OF COVERAGE
STEP 3 -- DETERMINE THE NAR FOR THE CEDING COMPANY AND THEN FOR THE REINSURER
REINSURER'S QUOTA SHARE PERCENTAGE FOR NAR3 (REINSQS3%)
NOTE: For ReinsQS2% and ReinsQS3%, round percentages to 2 decimal places. (This
rounding may cause slight increases or decreases in the amounts allocated to
each Party.)
MINIMUM AUTOMATIC REINSURANCE CESSION: [Redacted]
MINIMUM FACULTATIVE REINSURANCE CESSION: [Redacted]
LEAD REINSURER: Swiss Re Life & Health America Inc.
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
41
SCHEDULE C
FOREIGN NATIONAL UNDERWRITING PROGRAM
FOR SINGLE LIFE PERMANENT POLICIES ONLY; NOT AVAILABLE FOR LAST SURVIVOR
POLICIES
EFFECTIVE OCTOBER 1, 2008
The Ceding Company's Foreign National business shall be automatically reinsured
under the terms of this Agreement, if it meets all the requirements for
Automatic Reinsurance in Section III.A, with the following differences.
TYPE OF REINSURANCE
Risks qualifying under this program will be reinsured on a first-dollar quota
share basis.
CEDING COMPANY'S RETENTION
[Redacted]
FOREIGN NATIONAL REINSURANCE POOL SHARE
[Redacted]
AUTOMATIC BINDING LIMIT (EXCLUDES CEDING COMPANY'S RETENTION):
[Redacted]
JUMBO LIMIT:
[Redacted]
ADDITIONAL PLAN, AMOUNT, AND PAYMENT REQUIREMENTS
1. Permanent life policies only. Term coverage may be considered, but only in
the form of a rider included on a permanent base policy. Last survivor coverage
is excluded from this program.
2. Other than term riders referenced in Paragraph 1, above, no supplemental
benefit coverage, such as accidental death or waiver of premium, will be
allowed.
3. The minimum face amount is as follows: [Redacted]
4. Annual premium or Check-O-Matic premium mode only. The minimum annual
premium is the annual premium to endow. If Check-O-Matic is the premium mode, it
must be arranged with a U.S. Bank.
5. Premiums must be paid in U.S. currency and must be billed to a residence or
bank in the U.S.
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
42
SCHEDULE C
FOREIGN NATIONAL UNDERWRITING PROGRAM
FOR SINGLE LIFE PERMANENT POLICIES ONLY; NOT AVAILABLE FOR LAST SURVIVOR
POLICIES
EFFECTIVE OCTOBER 1, 2008
ADDITIONAL UNDERWRITING AND RISK CLASS GUIDELINES
[Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
43
SCHEDULE C
FOREIGN NATIONAL UNDERWRITING PROGRAM
FOR SINGLE LIFE PERMANENT POLICIES ONLY; NOT AVAILABLE FOR LAST SURVIVOR
POLICIES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
44
SCHEDULE D
OTHER SPECIAL UNDERWRITING PROGRAMS
EFFECTIVE OCTOBER 1, 2008
The Ceding Company has several special underwriting programs. The majority of
these programs are contained within the Underwriting Brochure entitled "Life
insurance underwriting that opens doors and closes cases", form LCM-05-418-1-09.
Another program, Life Express, effective October 26, 2009, is documented in a
LifeTIMES Bulletin dated October 30, 2009. Both of these publications have been
shared in advance of the execution of this Agreement with the Reinsurer. The
Ceding Company has two additional special underwriting programs not listed in
the Underwriting Brochure, the "Xxxxx Program" and the "Director's Charitable
Award Program", which are listed below.
XXXXX PROGRAM
[Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
45
SCHEDULE D
SPECIAL UNDERWRITING PROGRAMS
EFFECTIVE OCTOBER 1, 2008
DIRECTOR'S CHARITABLE AWARD PROGRAM (DCAP) -- FOR LAST SURVIVOR PLANS ONLY
[Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
46
SCHEDULE D
SPECIAL UNDERWRITING PROGRAMS
EFFECTIVE OCTOBER 1, 2008
DIRECTOR'S CHARITABLE AWARD PROGRAM (DCAP) -- CONTINUED
[Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
47
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
What follows is a summary of the Ceding Company's underwriting practices and
guidelines as of the Effective Date of this Agreement. The Ceding Company's
actual underwriting practices and guidelines are documented in its InfoBase data
system. To the extent that any information contained in this Schedule differs
from the practices and guidelines documented in InfoBase, InfoBase will govern.
UNDERWRITING PRACTICES
OVERALL UNDERWRITING PHILOSOPHY
It is the goal of our underwriting department to provide the best offer as
accurately and as quickly as we can, balancing the needs of all our stakeholders
-- producers, stockholders, reinsurers, policy owners, state insurance
departments, employees, etc. It is essential that we maintain a sense of
fairness with our company and our stakeholders, in terms of profitability and
mortality expectations.
UNDERWRITING REQUIREMENTS
[Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
48
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
49
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
50
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
51
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
UNDERWRITING REQUIREMENTS -- STANDARD PERMANENT PLANS
[Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
52
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
UNDERWRITING REQUIREMENTS -- STANDARD PERMANENT PLANS (CONT'D)
[Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
53
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
UNDERWRITING REQUIREMENTS -- STAG WALL STREET VUL
[Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
54
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
55
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
56
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
57
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
58
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
59
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
60
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
61
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
62
SCHEDULE F
POLICIES ELIGIBLE FOR REINSURANCE UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
The following categories of policies are eligible for reinsurance under this
Agreement:
CATEGORY # CATEGORY DESCRIPTION
----------------------------------------------------------------------------------------------------------------------------
1 Policies issues on or after March 1, 2009
2 Policies issued from the Effective Date of this Agreement through February 28,
2009 that were eligible for automatic reinsurance under one of the following
Ceding Company reinsurance pools:
i. Single Life Excess Pool effective November 1, 2002
ii. Advanced UL Pool effective September 1, 2004;
iii. Last Survivor Excess Pool effective January 1, 2002; and
iv. Advanced Last Survivor UL Pool effective January 1, 2005,
but that were fully retained by the Ceding Company at the time of processing (see Note below).
Notwithstanding the foregoing, fully retained policies issued during this period in
which the insured has a subsequent policy that is partially or fully ceded to
another pool (including the Hartford Term Pool effective April 10, 2006) will not
be eligible for reinsurance under this Agreement.
NOTE:
The Ceding Company completed the processing of Category 2 business in July 2009.
At the time of processing, the Ceding Company paid the Reinsurer Reinsurance
Premiums for all policies in Category 2 back to each policy's issue date.
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
63
EXHIBIT I
REINSURANCE PREMIUM CALCULATION
EFFECTIVE OCTOBER 1, 2008
FOR SINGLE LIFE PLANS OF INSURANCE
REINSURANCE PREMIUM
Reinsurance Premium shall be calculated each month for each risk reinsured as
[ (i) + (ii) ] / 12, where:
(i) equals the Yearly Renewable Term (YRT) Reinsurance Premium for the coverage
(as defined below); and
(ii) equals the Annual Flat Extra Reinsurance Premium (as defined below) for
the coverage, where
the sum of [ (i) + (ii) ] shall not exceed the Reinsured Net Amount at Risk for
such coverage, defined in Schedule B.
For the purposes of calculating Reinsurance Premium, the following will be
considered separate coverages: base policy, increases in coverage, and reinsured
riders.
YEARLY RENEWABLE TERM (YRT) REINSURANCE PREMIUM
The YRT Reinsurance Premium for each coverage shall equal (i) x (ii) x (iii) /
1,000, where:
(i) equals [ (a) x (b) ],(the "YRT Reinsurance Premium Rate") where:
(a) equals the applicable rate from the tables of Annual Rates per
$1,000 of Reinsured Net Amount at Risk specified in Exhibit III; and
(b) equals the applicable percentage from the tables of YRT Reinsurance
Rate Factors to be applied to the Annual Rates per $1,000 of
Reinsured Net Amount at Risk specified in Exhibit IV;
(ii) equals the applicable Substandard Table Percentage, specified in Exhibit
V, for the risk; and
(iii) equals the Reinsured Net Amount at Risk for such coverage, defined in
Schedule B.
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
64
EXHIBIT I
REINSURANCE PREMIUM CALCULATION
EFFECTIVE OCTOBER 1, 2008
FOR SINGLE LIFE PLANS OF INSURANCE
ANNUAL FLAT EXTRA REINSURANCE PREMIUM
The Annual Flat Extra Reinsurance Premium for each coverage equals
{(i) x [ 1-(ii) ] x [(iii) / 1,000]}, where:
(i) equals the applicable annual flat extra rate per 1,000, for the year of
coverage, that the Ceding Company charges for the coverage;
(ii) equals the Flat Extra Allowance Percentage, specified below; and
(iii) equals the Reinsured Net Amount At Risk for such coverage, defined in
Schedule B.
FLAT EXTRA ALLOWANCE PERCENTAGE [Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
65
EXHIBIT I
REINSURANCE PREMIUM CALCULATION
EFFECTIVE OCTOBER 1, 2008
FOR LAST SURVIVOR PLANS OF INSURANCE
REINSURANCE PREMIUM
Reinsurance Premium shall be calculated each month for each risk reinsured as
[(i) x (ii) / 1,000] / 12, where:
(i) equals the result of the following steps:
(ii) equals the Reinsured Net Amount at Risk for the coverage, defined in
Schedule B.
For the purposes of calculating Reinsurance Premium, the following will be
considered separate coverages: base policy, increases in coverage, and reinsured
riders. Reinsurance Premium for a single life rider attached to a last survivor
policy shall be determined in accordance with the Reinsurance Premium
calculations for single life plans of insurance.
YRT REINSURANCE PREMIUM RATE PER 1,000*
The YRT Reinsurance Premium Rate per 1,000 for each life for each coverage shall
equal (i) x (ii) + (iii), but in no event more than 1,000, where:
(i) equals the YRT Reinsurance Premium Rate per 1,000, which equals the quantity
[ (a) x (b) ] (the "YRT Reinsurance Premium Rate"), where:
(a) equals the applicable rate from the tables of Annual Rates per
$1,000 of Reinsured Net Amount at Risk specified in Exhibit III; and
(b) equals the applicable percentage from the tables of YRT Reinsurance
Rate Factors to be applied to the Annual Rates per $1,000 of
Reinsured Net Amount at Risk specified in Exhibit IV;
(ii) equals the applicable Substandard Table Percentage, specified in Exhibit V,
for the risk; and
(iii) equals the Annual Flat Extra Reinsurance Premium per 1,000, as defined
below.
* For purposes of determining the YRT Reinsurance Premium Rate per 1,000, a life
deemed uninsurable will be treated as Table P with a $250 flat extra for 10
years.
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
66
EXHIBIT I
REINSURANCE PREMIUM CALCULATION
EFFECTIVE OCTOBER 1, 2008
FOR LAST SURVIVOR PLANS OF INSURANCE
ANNUAL FLAT EXTRA REINSURANCE PREMIUM PER 1,000
The Annual Flat Extra Reinsurance Premium per 1,000 for each coverage equals
{(i) x [ 1-(ii)]}, where:
(i) equals the applicable annual flat extra rate per 1,000, for the year of
coverage, that the Ceding Company charges for the coverage; and
(ii) equals the Flat Extra Allowance Percentage, specified below.
FLAT EXTRA ALLOWANCE PERCENTAGE [Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
67
EXHIBIT II
RETENTION, BINDING, AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
(FOR SPECIFICS ON CALCULATION OF LIMITS WITH LAST SURVIVOR COVERAGE, SEE
WORKSHEET ON PAGE 4)
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
68
EXHIBIT II
RETENTION, BINDING, AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
(FOR SPECIFICS ON CALCULATION OF LIMITS WITH LAST SURVIVOR COVERAGE, SEE
WORKSHEET ON PAGE 4)
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
69
EXHIBIT II
RETENTION, BINDING, AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
70
EXHIBIT II
RETENTION, BINDING, AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
[Redacted]
EFFECTIVE OCTOBER 1, 2008
LAST SURVIVOR LIMITS AND RETENTION WORKSHEET
(NOTE: IF ONE LIFE IS UNINSURABLE, TREAT THE RISK AS A SINGLE LIFE RISK FOR THE
PURPOSE OF LIMITS.)
[Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
71
EXHIBIT III
ANNUAL RATES PER $1,000 OF REINSURED NET AMOUNT AT RISK
EFFECTIVE OCTOBER 1, 2008
FOR SINGLE LIFE AND LAST SURVIVOR PLANS OF INSURANCE
AND
FOR AUTOMATIC AND FACULTATIVE REINSURANCE
Annual Rates per $1,000 of Reinsured Net Amount at Risk are provided in the
following attached tables of Exhibit III. They are provided on a Select &
Ultimate basis and vary by:
1. Age basis (Age Nearest Birthday or Age Last Birthday), to align with the
Valuation Mortality Table for the Plan of Insurance;
2. Gender (Male, Female); and
3. Rate class --
a. Preferred Plus Non-Nicotine (PPNN);
b. Preferred Non-Nicotine (PNN);
c. Standard Non-Nicotine (SNN);
d. Preferred Nicotine (PN); and
e. Standard Nicotine (SN).
For Life Solutions II UL plans, allowance percentages will be determined as
follows:
(1) For "Preferred" policies, use the SNN rate class; and
(2) For "Standard" policies, use the SN rate class.
All risks insured by the Ceding Company on a Unisex basis will be reinsured
using gender-specific rates.
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
72
EXHIBIT III
ANNUAL RATES PER $1,000 OF RETAINED NET AMOUNT AT RISK
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
73
EXHIBIT V
YRT REINSURANCE RATE FACTORS AND SUBSTANDARD TABLE PERCENTAGES
EFFECTIVE OCTOBER 1, 2008
SUBSTANDARD TABLE PERCENTAGES (SEE EXHIBIT I FOR USAGE)
[Redacted]
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
94
EXHIBIT VI
CONDITIONAL RECEIPT OR TEMPORARY INSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
[LOGO] HARTFORD LIFE INSURANCE COMPANY
THE HARTFORD HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
000 XXXXXXXXXX XXXXX, XXXXXXXX, XX 00000
P.O. BOX 64271, ST. XXXX, MN 55164 0271
TEMPORARY INSURANCE AGREEMENT
PROPOSED PRIMARY INSURED: NAME: DATE OF BIRTH:
Under this Temporary Insurance Agreement ("Agreement"), Hartford Life Insurance
Company or Hartford Life and Annuity Insurance Company ("Company") agrees to
provide a LIMITED AMOUNT of life insurance coverage, for a LIMITED PERIOD of
time, subject to the terms and conditions set forth below.
WHEN COVERAGE BEGINS
Temporary life insurance coverage under the Agreement becomes effective on the
date this Agreement is signed, subject to ALL of the following conditions:
a) An Application for Life Insurance with the Company ("Application") or a
Request for Insurance Application with the Company ("Request") has been
completed as of the same date this Agreement has been signed;
b) The answers to the health questions below are "No"; AND
c) The Company receives the first full modal premium for the mode selected on
the Application or the Request.
WHEN TEMPORARY INSURANCE COVERAGE TERMINATES -- 90 DAY MAXIMUM
Temporary insurance under this Agreement will terminate on the EARLIEST of:
1. 30 days from the effective date of this Agreement if a required and
requested medical exam, lab test, application interview or medical report has
not been received by the Company;
2. 90 days from the effective date of this Agreement;
3. The date the policy, as applied for, takes effect;
4. The date the Company offers a policy with a risk assessment other than
Standard or a Preferred Class;
5. The date the Company mails a notice of termination of this Agreement to the
Proposed Policyowner at the address set forth in the Application or Request.
If the Company terminates coverage, the collected premium will be refunded
without interest.
WHO IS COVERED
This Agreement provides temporary insurance coverage only for the Primary
Insured. The Primary Insured is the "Proposed Insured" named in the Request, the
"Proposed Insured 1" named in the Application, or "Proposed Insured 1" and
"Proposed Insured 2" named in Applications for survivorship life insurance
coverage. THIS AGREEMENT DOES NOT PROVIDE INSURANCE COVERAGE FOR ANY OTHER
PROPOSED INSUREDS, INCLUDING BUT NOT LIMITED TO, OTHER PROPOSED INSUREDS UNDER
TERM INSURANCE RIDERS AND CHILD RIDERS.
AMOUNT OF LIFE INSURANCE COVERAGE -- $1,000,000 MAXIMUM
If death of a covered Primary Insured occurs while this Agreement is in effect,
the Company will pay a death benefit to the beneficiary designated in the
Application or Request.
The death benefit shall be the LESSER of:
a) The amount of death benefit indicated in the Application or Request, with
respect to the deceased Primary Insured; or
b) $1,000,000.
LIMITATIONS AND CONDITIONS OF COVERAGE
1. If benefits are payable under this Agreement, then no benefit relating to
that loss will be payable under the policy which is applied for.
2. Material misrepresentations or fraud in the answers to the Health Questions
set forth below or in the Application will invalidate this Agreement and the
Company's liability will be limited to a refund of the premium payment.
3. This Agreement does not cover any Primary Insured who is age 71 or over as
of the effective date of this Agreement.
DETACH OWNER'S COPY AT TIME OF APPLICATION
HOME OFFICE COPY
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
95
EXHIBIT VI
CONDITIONAL RECEIPT OR TEMPORARY INSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
LIMITATIONS AND CONDITIONS OF COVERAGE (CONTINUED)
4. This Agreement provides temporary life insurance coverage in the event of
the death of Primary Insured. It does not provide any coverage for other
benefits which may be applied for, including but not limited to, waiver of
premium or accidental death benefits or coverage.
5. There is no coverage under this Agreement if a Primary Insured dies by
suicide. In that event, the Company's liability will be limited to a refund of
the premium payment.
6. There is no coverage under this Agreement if the check or draft submitted as
payment is not honored on the first presentation to the bank.
7. Only an officer of the Company can make, modify, or alter any of the
provisions of this Agreement.
HEALTH QUESTIONS
Has the Primary Insured:
1. Within the past 90 days, other than for pregnancy or childbirth, been
admitted to or treated at a hospital or other medical facility, been advised to
be admitted, or had surgery performed or recommended?
Yes No
2. Within the past 2 years had or been treated for heart disease, chest pain,
stroke, cancer, alcohol or drug use, immune system disorder or had such
treatment recommended by a physician or medical practitioner?
Yes No
NOTE: If either Question #1 or Question #2 above is answered "Yes" or left
blank, no coverage will take effect under this Temporary Insurance Agreement and
any premium received will be refunded.
DECLARATIONS
Each of the undersigned declares, understands and agrees that:
- The answers provided above are complete and true to the best of his/her
knowledge and belief.
- If the answers to the Health Questions contained in this Agreement or the
Application are incorrect, incomplete or untrue, the Company will have the
right to deny benefits under this Agreement.
X Date:
----------------------------------- ------------------------------
Proposed Primary Insured Signature
X Date:
----------------------------------- ------------------------------
Proposed Policy Owner Signature
(if other than the Proposed
Insured)
RECEIPT OF PAYMENT
A premium payment of $ has been submitted with the Application or
Request. Additional premium may be required upon Policy delivery.
All premium checks must be made payable to Hartford Life Insurance Company or
Hartford Life and Annuity Insurance Company. Do not make check(s) payable to the
Agent or leave the payee blank.
X Date:
----------------------------------- ------------------------------
Agent Signature
DETACH OWNER'S COPY AT TIME OF APPLICATION
HOME OFFICE COPY
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
96
EXHIBIT VI
CONDITIONAL RECEIPT OR TEMPORARY INSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
[LOGO] HARTFORD LIFE INSURANCE COMPANY
THE HARTFORD HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
000 XXXXXXXXXX XXXXX, XXXXXXXX, XX 00000
P.O. BOX 64271, ST. XXXX, MN 55164 0271
TEMPORARY INSURANCE AGREEMENT
PROPOSED PRIMARY INSURED: NAME: DATE OF BIRTH:
Under this Temporary Insurance Agreement ("Agreement"), Hartford Life Insurance
Company or Hartford Life and Annuity Insurance Company ("Company") agrees to
provide a LIMITED AMOUNT of life insurance coverage, for a LIMITED PERIOD of
time, subject to the terms and conditions set forth below.
WHEN COVERAGE BEGINS
Temporary life insurance coverage under the Agreement becomes effective on the
date this Agreement is signed, subject to ALL of the following conditions:
a) An Application for Life Insurance with the Company ("Application") or a
Request for Insurance Application with the Company ("Request") has been
completed as of the same date this Agreement has been signed;
b) The answers to the health questions below are "No"; AND
c) The Company receives the first full modal premium for the mode selected on
the Application or the Request.
WHEN TEMPORARY INSURANCE COVERAGE TERMINATES -- 90 DAY MAXIMUM
Temporary insurance under this Agreement will terminate on the EARLIEST of:
1. 30 days from the effective date of this Agreement if a required and
requested medical exam, lab test, application interview or medical report has
not been received by the Company;
2. 90 days from the effective date of this Agreement;
3. The date the policy, as applied for, takes effect;
4. The date the Company offers a policy with a risk assessment other than
Standard or a Preferred Class;
5. The date the Company mails a notice of termination of this Agreement to the
Proposed Policyowner at the address set forth in the Application or Request.
If the Company terminates coverage, the collected premium will be refunded
without interest.
WHO IS COVERED
This Agreement provides temporary insurance coverage only for the Primary
Insured. The Primary Insured is the "Proposed Insured" named in the Request, the
"Proposed Insured 1" named in the Application, or "Proposed Insured 1" and
"Proposed Insured 2" named in Applications for survivorship life insurance
coverage. THIS AGREEMENT DOES NOT PROVIDE INSURANCE COVERAGE FOR ANY OTHER
PROPOSED INSUREDS, INCLUDING BUT NOT LIMITED TO, OTHER PROPOSED INSUREDS UNDER
TERM INSURANCE RIDERS AND CHILD RIDERS.
AMOUNT OF LIFE INSURANCE COVERAGE -- $1,000,000 MAXIMUM
If death of a covered Primary Insured occurs while this Agreement is in effect,
the Company will pay a death benefit to the beneficiary designated in the
Application or Request.
The death benefit shall be the LESSER of:
a) The amount of death benefit indicated in the Application or Request, with
respect to the deceased Primary Insured; or
b) $1,000,000.
LIMITATIONS AND CONDITIONS OF COVERAGE
1. If benefits are payable under this Agreement, then no benefit relating to
that loss will be payable under the policy which is applied for.
2. Material misrepresentations or fraud in the answers to the Health Questions
set forth below or in the Application will invalidate this Agreement and the
Company's liability will be limited to a refund of the premium payment.
3. This Agreement does not cover any Primary Insured who is age 71 or over as
of the effective date of this Agreement.
OWNER'S COPY
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
97
EXHIBIT VI
CONDITIONAL RECEIPT OR TEMPORARY INSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
LIMITATIONS AND CONDITIONS OF COVERAGE (CONTINUED)
4. This Agreement provides temporary life insurance coverage in the event of
the death of Primary Insured. It does not provide any coverage for other
benefits which may be applied for, including but not limited to, waiver of
premium or accidental death benefits or coverage.
5. There is no coverage under this Agreement if a Primary Insured dies by
suicide. In that event, the Company's liability will be limited to a refund of
the premium payment.
6. There is no coverage under this Agreement if the check or draft submitted as
payment is not honored on the first presentation to the bank.
7. Only an officer of the Company can make, modify, or alter any of the
provisions of this Agreement.
HEALTH QUESTIONS
Has the Primary Insured:
1. Within the past 90 days, other than for pregnancy or childbirth, been
admitted to or treated at a hospital or other medical facility, been advised to
be admitted, or had surgery performed or recommended?
Yes No
2. Within the past 2 years had or been treated for heart disease, chest pain,
stroke, cancer, alcohol or drug use, immune system disorder or had such
treatment recommended by a physician or medical practitioner?
Yes No
NOTE: If either Question #1 or Question #2 above is answered "Yes" or left
blank, no coverage will take effect under this Temporary Insurance Agreement and
any premium received will be refunded.
DECLARATIONS
Each of the undersigned declares, understands and agrees that:
- The answers provided above are complete and true to the best of his/her
knowledge and belief.
- If the answers to the Health Questions contained in this Agreement or the
Application are incorrect, incomplete or untrue, the Company will have the
right to deny benefits under this Agreement.
X Date:
----------------------------------- ------------------------------
Proposed Primary Insured Signature
X Date:
----------------------------------- ------------------------------
Proposed Policy Owner Signature
(if other than the Proposed
Insured)
RECEIPT OF PAYMENT
A premium payment of $ has been submitted with the Application or
Request. Additional premium may be required upon Policy delivery.
All premium checks must be made payable to Hartford Life Insurance Company or
Hartford Life and Annuity Insurance Company. Do not make check(s) payable to the
Agent or leave the payee blank.
X Date:
----------------------------------- ------------------------------
Agent Signature
OWNER'S COPY
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
98
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
REPORT ACCOUNTING PERIOD DUE DATE
---------------------------------------------------------------------------------------------------------------
1. New Business* Monthly 30th day after month end
(New issues only -- first time
policy reported to the Reinsurer)
2. Renewal Business* Monthly 30th day after month end
(Policies with renewal dates
within the Accounting Period)
3. Changes & Terminations* Monthly 30th day after month end
(includes conversions, replacements
reinstatements, increases, decreases,
recaptures, lapses, claims, etc.)
4. Inforce List Monthly 30th day after month end
(Listing of each policy in force)
5. Statutory Reserves Quarterly 30th day after quarter end
6. Policy Exhibit Monthly 30th day after month end
------------
* Policy record details for new business, renewal business, and changes and
terminations (Reports 1, 2, and 3 above) may be reported as separate reports
or combined into one report, provided, the required data elements continue
to be satisfied.
REPORTING SYSTEM:
The system used by the Ceding Company to administer its reinsurance is: XXX.
NOTE:
Certain policy transactions, such as increases, are coded in the policy
administration system as riders, although they do not correspond to filed rider
forms.
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
99
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
MINIMUM DATA REQUIREMENTS
INFORCE AND TRANSACTION FILE
Company Identifies the Ceding Company
Policy Policy number which is part of the policy key
Coverage/rider Coverage number which is part of the policy key. This
number is used to identify specific policy coverage.
Cession ID This field contains the number assigned to this
cession by the Reinsurer
Transaction Sequence This field indicates the transaction record(s)
created during the month.
Line of Business This field indicates the line of business the policy
falls under.
Reinsurance Company Two character reinsurance company ID code that
identifies the Reinsurer.
Reporting Company Identifies the company used for reporting purposes.
Will be the same as the Reinsurance Company.
Transaction Type Identifies the type of transaction being reported on
the Transaction extract.
Transaction Count This field is used on the Transaction extract to
identify the addition or termination of a cession.
Reinsurance From Date This field contains the beginning date of the period
covered by this record. The premiums on the
Transaction record cover the period beginning with
the From Date through the To Date.
Reinsurance To Date This field contains the end date of the period
covered by a record.
Date Reported On the Transaction extract, this is the month the
transaction was reported.
Mode Identifies the mode of reinsurance premium payment.
Policy Duration The duration at issue is 01.
Reinsurance Duration Contains the reinsurance duration. It may differ from
the policy duration if the cession is a continuation.
Cession Number Hartford does not currently use. Defaults to spaces.
Policy Date This field contains the issue date of the policy.
Reinsurance Date This field contains the issue date of the
reinsurance. For most cessions it is the same as the
policy date. For continuations, it contains the issue
date of the original coverage.
Issue State This field contains a two-letter abbreviation of the
state or province of issue. Used to determine unisex
rates.
Resident State This field contains a two-letter abbreviation of the
state or province of issue. Used to compute premium
tax reimbursement if applicable.
Joint Type Identifies Joint business type
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
100
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Joint Age Used for joint coverages using a joint equivalent age
for rate searches.
Auto/Fac Indicator Indicates whether the policy is ceded on an Automatic
or Facultative basis.
Death Benefit Option This field contains the option chosen by the insured
for death proceeds payment.
Participation code This field indicates whether the business is Non
Participating (N) or Participating (P).
Issue Type Identifies how a cession was issued. (New business or
Continuation)
Underwriting Method Identifies the type of underwriting used to issue the
coverage.
Treaty Number This field contains the TAI system treaty number
Reinsurance Type This field is a one-character code that identifies
the type of reinsurance. (Y=YRT, C=Coinsurance &
M=Modco.)
Plan This field contains the coverage plan code.
Product code This field contains the product type code.
Product code 1 For Joint Life policies, this field contains the
product type code for Insured 1.
Product code 2 For Joint Life policies, this field contains the
product type code for Insured 2. (If this is not a
Joint Life policy, this field will be blank.)
Currency Code This field identifies the currency. (USD or CND if
applicable)
Last Name -- 1 This field contains the insured's last name. For
Joint Life policies, this field contains the last
name for Insured 1. (Maximum of 20 characters)
First Name -- 1 This field contains the insured's first name. For
Joint Life policies, this field contains the first
name for Insured 1. (Maximum of 15 characters)
Middle Initial -- 1 This field contains the insured's middle initial. For
Joint Life policies, this field contains the middle
initial for Insured 1. (1 character)
Client ID -- 1 This field contains the unique client ID for an
insured used to connect lives when calculating
retention on a life. For Joint Life policies, this
field indicates the client ID for Insured 1. (Maximum
of 20 characters)
Insured Status -- 1 This field indicates the insured's coverage status.
For Joint Life policies, this field indicates the
insured's coverage status for Insured 1.
DOB -- 1 This field contains the insured's date of birth. For
Joint Life policies, this field contains the date of
birth for Insured 1.
Sex -- 1 This field is used to identify the sex of the
insured. For Joint Life policies, this field contains
the sex of Insured 1.
Pricing Sex -- 1 This field contains the sex used to compute premiums
and allowances. For Joint Life policies, this field
contains the pricing sex of Insured 1.
Age -- 1 This field contains the insured's issue age. For
Joint Life policies, this field contains the issue
age for Insured 1.
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
101
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Class -- 1 This field contains the company's rating of standard
or preferred and the smoker class. For Joint Life
policies, this field contains the class for Insured
1.
Mortality -- 1 This field contains the insured's mortality rating.
For Joint Life policies, this field contains the
mortality rating for Insured 1.
Mortality Duration -- 1 This field contains the duration of the insured's
mortality rating. For Joint Life policies, this field
contains the duration of the mortality rating for
Insured 1.
Temp Flat -- 1 This field contains the temporary flat extra per
1000. For Joint Life policies, this field contains
the temporary flat extra per 1000 for Insured 1.
Temp Duration -- 1 This field contains the number of years that the
temporary flat extra rating is being charged. For
Joint Life policies, this field contains the number
of years that the flat extra rating is being charged
for Insured 1.
Perm Flat -- 1 This field contains the permanent flat extra per
1000. For Joint Life policies, this field contains
the permanent flat extra per 1000 for Insured 1.
Perm Duration -- 1 This field contains the number of years that the
permanent flat extra rating is being charged. For
Joint Life policies, this field contains the number
of years that the flat extra rating is being charged
for Insured 1.
Last Name -- 2 This field contains the insured's last name. For
Joint Life policies, this field contains the last
name for Insured 2. (If this is not a Joint Life
policy, this field will be blank.) (Maximum of 20
characters)
First Name -- 2 This field contains the insured's first name. For
Joint Life policies, this field contains the first
name for Insured 2. (If this is not a Joint Life
policy, this field will be blank.) (Maximum of 15
characters)
Middle Initial -- 2 This field contains the insured's middle initial. For
Joint Life policies, this field contains the middle
initial for Insured 2. (If this is not a Joint Life
policy, this field will be blank.) (1 character)
Client ID -- 2 This field contains the unique client ID for an
insured used to connect lives when calculating
retention on a life. For Joint Life policies, this
field indicates the client ID for Insured 2. (If this
is not a Joint Life policy, this field will be
blank.) (Maximum of 20 characters)
Insured Status -- 2 This field indicates the insured's coverage status.
For Joint Life policies, this field indicates the
insured's coverage status for Insured 2. (If this is
not a Joint Life policy, this field will be blank.)
DOB -- 2 This field contains the insured's date of birth. For
Joint Life policies, this field contains the date of
birth for Insured 2. (If this is not a Joint Life
policy, this field will be blank.)
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
102
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Sex -- 2 This field is used to identify the sex of the
insured. For Joint Life policies, this field contains
the sex of Insured 2. (If this is not a Joint Life
policy, this field will be blank.)
Age -- 2 This field contains the insured's issue age. For
Joint Life policies, this field contains the issue
age for Insured 2. (If this is not a Joint Life
policy, this field will be blank.)
Pricing Sex -- 2 This field contains the sex used to compute premiums
and allowances. For Joint Life policies, this field
contains the pricing sex of Insured 2. (If this is
not a Joint Life policy, this field will be blank.)
Class -- 2 This field contains the company's rating of standard
or preferred and the smoker class. For Joint Life
policies, this field contains the class for Insured
2. (If this is not a Joint Life policy, this field
will be blank.)
Mortality -- 2 This field contains the insured's mortality rating.
For Joint Life policies, this field contains the
mortality rating for Insured 2. (If this is not a
Joint Life policy, this field will be blank.)
Mortality Duration -- 2 This field contains the duration of the insured's
mortality rating. For Joint Life policies, this field
contains the duration of the mortality rating for
Insured 2. (If this is not a Joint Life policy, this
field will be blank.)
Temp Flat -- 2 This field contains the temporary flat extra per
1000. For Joint Life policies, this field contains
the temporary flat extra per 1000 for Insured 2. (If
this is not a Joint Life policy, this field will be
blank.)
Temp Duration -- 2 This field contains the number of years that the
temporary flat extra rating is being charged. For
Joint Life policies, this field contains the number
of years that the flat extra rating is being charged
for Insured 2. (If this is not a Joint Life policy,
this field will be blank.)
Perm Flat -- 2 This field contains the permanent flat extra per
1000. For Joint Life policies, this field contains
the permanent flat extra per 1000 for Insured 2. (If
this is not a Joint Life policy, this field will be
blank.)
Perm Duration -- 2 This field contains the number of years that the
permanent flat extra rating is being charged. For
Joint Life policies, this field contains the number
of years that the flat extra rating is being charged
for Insured 2. (If this is not a Joint Life policy,
this field will be blank.)
Policy Face Amount Indicates the face amount of the total policy.
Retained Amount This field contains the amount retained on this
policy coverage, not on the life.
Ceded Amount This field contains the policy amount ceded to a
specific reinsurer.
Net Amount at Risk This field contains the reinsured net amount at risk
(NAR) for a specific reinsurer.
Benefit Mortality ADB or Waiver mortality.
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
103
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Premium This field contains the reinsurance premium.
Allowance This field contains the reinsurance allowance.
Flat extra type This field indicates whether there is a temporary
flat extra (T) or a permanent flat extra (P) being
charged.
Premium Tax If premium tax is reimbursed, this field contains the
tax amount.
Cash Value If applicable, this field is used to recover
coinsured cash values from the Reinsurer.
Benefit If applicable, this field is used to recover benefits
from the Reinsurer.
Dividend If applicable, this field contains the reinsurer's
share of the direct dividend.
Policy Fee This field contains the reinsurance policy fee.
Continuation Original This field indicates the ceding company on the
Company original policy. (Used for conversions only.)
Continuation Original This field indicates the policy number for the
Policy original policy. (Used for conversions only.)
Continuation Original This field indicates the coverage/rider for the
Coverage/Rider original policy. (Used for conversions only.)
Message An informational message may be manually added to a
policy by the Ceding Company.
Image switch Hartford does not currently use. Defaults to spaces.
Policy Fee Allowance This field contains the reinsurance policy fee
allowance.
Location Code Hartford does not currently use. Defaults to spaces.
Treaty Reference Number Upon request, this field contains the Reinsurer's
treaty number.
Claim Hartford does not currently use. Defaults to spaces.
Policy Status This field identifies the status of the cession.
Policy Master Smoker -- 1 Policy smoker class on direct policy. For Joint Life
policies, this field contains the policy master
smoker class for Insured 1.
Policy Master Smoker -- 2 Policy smoker class on direct policy. For Joint Life
policies, this field contains the policy master
smoker class for Insured 2. (If this is not a Joint
Life policy, this field will be blank.)
Policy Effective Date This field contains the effective date of the
reinsurance.
Policy Application Date This field indicates the date the insured signed the
application.
NAR Type This field indicates the method used in determining
the Total Net Amount at Risk (as defined in Schedule
B).
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
104
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
POLICY EXHIBIT FILE*
Company Identifies the Ceding Company.
Policy Policy number which is part of the policy key.
Coverage/rider Coverage number which is part of the policy key. This
number is used to identify a specific policy
coverage.
Cession ID This field contains the number assigned to this
cession by the Reinsurer.
Line of Business This field indicates the line of business the policy
falls under.
Report Date This is the month the transaction was reported.
Reinsurance Company Two character reinsurance company ID code that
identifies the Reinsurer.
Reporting Company Identifies the company used for reporting purposes.
Will be the same as the Reinsurance Company.
Treaty Number This field contains the TAI system treaty number.
Transaction Type Identifies the type of transaction being reported on
the Transaction extract.
Policy Count Each New Business, Continuation & Reinstatement will
be assigned a count of 1, Terminations will be
assigned -1 and Renewals/NAR changes will be assigned
0.
Base Ceded Amount This field contains the policy base amount ceded.
ADB ceded Amount This field contains the policy ADB amount ceded.
Waiver Ceded Amount This field contains the policy waiver amount ceded.
Net Amount at Risk The reinsured net amount at risk (NAR).
Plan This field contains the coverage plan code.
Auto/Fac Indicator Indicates whether the policy is ceded on an Automatic
or Facultative basis.
Reinsurance Type This field is a one-character code that identifies
the type of reinsurance. (Y=YRT, C=Coinsurance &
M=Modco.)
Currency Code This field identifies the currency. (USD or CND if
applicable)
------------
* The Policy Exhibit will include a summary of reinsurance movement for a
given period categorized by transactions type. This summary provides the
Cession Count, Ceded Amount and Net Amount at Risk at the beginning of the
reporting period, a summary of the transactions occurring during the report
period as well as what is in force as of the ending of the report period.
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
105
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
RESERVE FILE
Company Identifies the Ceding Company
Policy Policy number which is part of the policy key
Coverage/rider Coverage number which is part of the policy key. This
number is used to identify a specific policy
coverage.
Cession ID This field contains the number assigned to this
cession by the Reinsurer
Benefit Type This field is the reserve type. 1 = Life, 2=ADB,
3=Waiver, 4=Flat Extras, 5=Substandard
Calc Method Hartford's TAI Valuation Method 1=Xxxxxxx Reserve +
1/2 cx, E=Coinsurance Reserve, H=Half Premium,
L=Factor FLX1, X=1/2 cx
Reinsurance Company Two character reinsurance company ID code that
identifies the Reinsurer.
Reporting Company Identifies the company used for reporting purposes.
Will be the same as the Reinsurance Company.
Line of Business This field indicates the line of business the policy
falls under. (L=Life)
Treaty Number This field contains the TAI system treaty number
Plan This field contains the coverage plan code.
Auto/Fac Indicator Indicates whether the policy is ceded on an Automatic
or Facultative basis.
Product code This field contains the product type code.
Joint Type Identifies Joint business Type
Joint Method Switch Identifies XXX Xxxxxxx method calculation
Mode Identifies the mode of reinsurance premium payment.
Cession Status This field identifies the status of the cession.
Reinsurance Type This field is a one-character code that identifies
the type of reinsurance.
Duration Contains the reinsurance duration. It may differ from
the policy duration if the cession is a continuation.
Participation code This field indicates whether the business is Non
participating (N) or Participating (P).
Policy Date This field contains the issue date of the policy.
Reinsurance To Date This field contains the end date of the period
covered by a record.
Policy Face Amount Indicates the face amount of the total policy.
Ceded Amount This field contains the policy amount ceded to a
specific reinsurer
Net Amount at Risk This field contains the reinsured net amount at risk
(NAR) for a specific reinsurer.
Premium This field contains the reinsurance premium.
Reserve Percent Value appears on Coinsurance business only
Cession Count Cession count only appears under Life (Base), not
benefits.
Age Basis Nearest/Closest (C), Last (L), Next (N)
Insured Status -- 1 This field indicates the insured's coverage status.
For Joint Life policies, this field indicates the
insured's coverage status for Insured 1.
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
106
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Age -- 1 This field contains the insured's issue age. For
Joint Life policies, this field contains the issue
age for Insured 1.
Class -- 1 This field contains the company's rating of standard
or preferred and the smoker class. For Joint Life
policies, this field contains the class for Insured
1.
Sex -- 1 This field is used to identify the sex of the
insured. For Joint Life policies, this field contains
the sex of Insured 1.
Mortality -- 1 This field contains the insured's mortality rating.
For Joint Life policies, this field contains the
mortality rating for Insured 1.
Insured Status -- 2 This field indicates the insured's coverage status.
For Joint Life policies, this field indicates the
insured's coverage status for Insured 2. (If this is
not a Joint Life policy, this field will be blank.)
Age -- 2 This field contains the insured's issue age. For
Joint Life policies, this field contains the issue
age for Insured 2. (If this is not a Joint Life
policy, this field will be blank.)
Class -- 2 This field contains the company's rating of standard
or preferred and the smoker class. For Joint Life
policies, this field contains the class for Insured
2. (If this is not a Joint Life policy, this field
will be blank.)
Sex -- 2 This field is used to identify the sex of the
insured. For Joint Life policies, this field contains
the sex of Insured 2. (If this is not a Joint Life
policy, this field will be blank.)
Mortality -- 2 This field contains the insured's mortality rating.
For Joint Life policies, this field contains the
mortality rating for Insured 2. (If this is not a
Joint Life policy, this field will be blank.)
Reserve Statutory or Tax Reserve for each coverage.
Reserve Interest Rate This field identifies the Interest Rate used when
calculating reserves.
Reserve Factor Applicable Mortality Basis YRT Factor
Factor Pointer TAI specific field to identify applicable mortality
table used when calculating reserves.
Attained Age TAI specific field. Default is 1
Setback TAI specific field. Default is zero
Class Switch TAI specific field. Valuation Class (D=Distinct)
Curtate Switch This field indicates whether reserves are on a
curtate or continuous basis.
Caption Hartford's TAI Valuation Method
Error Code Informational field used by Hartford -- Usually Blank
Reserve Class 1 This field contains insured's smoker class. For Joint
Life policies, this field contains the class for
Insured 1.
Reserve Class 2 This field contains insured's smoker class. For Joint
Life policies, this field contains the class for
Insured 2. (If this is not a Joint Life policy, this
field will be blank.)
Currency Code This field identifies the currency. (USD or CND if
applicable)
Valuation Interest TAI assigned field that is used to read applicable
Pointer interest rates when calculating 1/2 cx reserves.
NAR Type This field indicates the method used in determining
the Total Net Amount at Risk (as defined in Schedule
B).
Allocated Retention. Pool -- Effective 10/1/2008
Between XXX and TLIC
107
AMENDMENT 1
EFFECTIVE JULY 1, 2009
TO THE
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM
REINSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
TRANSAMERICA LIFE INSURANCE COMPANY ("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
include certain policies which were issued by the Ceding Company between October
1, 2008 and March 1, 2009 and ceded to the Reinsurer under the applicable
reinsurance treaty that was accepting new business on those dates; and
WHEREAS, the policies qualified as special cessions based on the following
criteria:
NOW, THEREFORE for good and valuable consideration, receipt of which is hereby
acknowledged,
1. The Ceding Company shall cede and the Reinsurer shall accept the risk on
the following policies, effective as of the reinsurance effective dates
specified below, in accordance with the terms of this Agreement; and
2. Reinsurance Premiums for such policies shall be calculated on a
point-in-scale basis in accordance with Exhibit I.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 1 -- Effective July 1, 2009
1
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of July 1, 2009.
TRANSAMERICA LIFE INSURANCE COMPANY
By: /s/ Xxxxx X. Xxxxxxxxxx Attest: /s/ Xxxxx X. Xxxxxxxxx
------------------------------ ------------------------------
Name: Xxxxx X. Xxxxxxxxxx Name: Xxxxx X. Xxxxxxxxx
Title: Senior Vice President Title: Second Vice President
Date: May 17, 2010 Date: May 20, 2010
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ [ILLEGIBLE] Attest: /s/ Xxxx Xxxxxxx
------------------------------ ------------------------------
Name: [ILLEGIBLE] Name: Xxxx Xxxxxxx
Title: Assistant Vice President & Title: Assistant Vice President &
Actuary Actuary
Date: 5/28/2010 Date: 5/28/2010
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 1 -- Effective July 1, 2009
2
AMENDMENT 2
EFFECTIVE MARCH 5, 2010
TO THE
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM
REINSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
TRANSAMERICA LIFE INSURANCE COMPANY ("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to add
the following new Single Life Plans of Insurance:
- Hartford Bicentennial UL Founders II
- Hartford Bicentennial UL Founders II Extended Value Option
and the following Rider:
- Owner Designated Settlement Option Rider.
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
1. Schedule A is deleted in its entirety and replaced with the attached revised
Schedule A.
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 2 -- Effective March 5, 2010
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of March 5, 2010.
TRANSAMERICA LIFE INSURANCE COMPANY
By: /s/ Xxxxx X. Xxxxxxxxxx Attest: /s/ Xxxxx X. Xxxxxxxxx
-------------------------------- --------------------------------
Name: Xxxxx X. Xxxxxxxxxx Name: Xxxxx X. Xxxxxxxxx
Title: Senior Vice President Title: Second Vice President
Date: April 29, 2010 Date: April 29, 2010
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxxx Xxxxxxxxx Attest: /s/ Xxxxxxx Xxxxxx
-------------------------------- --------------------------------
Name: Xxxxxxx Xxxxxxxxx Name: Xxxxxxx Xxxxxx
Title: Assistant Vice President & Title: Senior Vice President & Actuary
Actuary
Date: 5/11/10 Date: 5/11/10
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 2 -- Effective March 5, 2010
2
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE MARCH 5, 2010
SINGLE LIFE PLANS OF INSURANCE
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE*
-----------------------------------------------------------------------------------------
Stag UL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Bicentennial UL Founders 2001 CSO M/F S/NS Ultimate ANB A
Hartford UL CV 1980 CSO M/F S/NS Ultimate ALB A
Stag Wall Street VUL 1980 CSO M/F S/NS Ultimate ALB A
Stag Protector II VUL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Leaders VUL Legacy 2001 CSO M/F Composite Ultimate ANB A
Stag Accumulator II VUL 1980 CSO M/F Unismoke Ultimate ALB A
Hartford Leaders VUL Liberty (a) 1980 CSO M/F Unismoke Ultimate ANB A
Hartford Leaders VUL Liberty (b) 2001 CSO M/F Composite Ultimate ANB A
Life Solutions II UL (a) 1980 CSO M/F S/NS Ultimate ALB A
Life Solutions II UL (b) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Advanced Universal Life 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Freedom 2001 CSO M/F S/NS Ultimate ANB B
Hartford Quantum II VUL (a) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Quantum II VUL (b) 2001 CSO M/F S/NS Ultimate ANB A
Hartford ExtraOrdinary Whole Life 2001 CSO M/F S/NS Ultimate ALB A
(a)
Hartford ExtraOrdinary Whole Life 2001 CSO M/F S/NS Ultimate ANB A
(b)
Hartford Bicentennial UL Founders 2001 CSO M/F S/NS Ultimate ANB A
II
Hartford Bicentennial UL Founders
II
Extended Value Option 2001 CSO M/F S/NS Ultimate ANB A
RIDERS PROVIDING DEATH BENEFITS RIDERS THAT PROVIDE ADDITIONAL BENEFITS
THAT ARE ELIGIBLE FOR REINSURANCE: BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Accidental Death Benefit (ADB) Rider
Primary Insured Term Rider Accelerated Benefit Rider (ABR)
Other Covered Insured Term Life LifeAccess Accelerated Ben. Rider
Rider (LAABR)
Cost of Living Adjustment (COLA) Policy Continuation Rider
Rider
Policy Protection Rider (PPR)
Enhanced No Lapse Guarantee Rider
NOTE: NAR Type for term riders Lifetime No Lapse Guarantee Rider
above is C.
For COLA Rider, NAR Type follows Guar. Min. Accum. Benefit (GMAB) Rider
Base Policy to which it is Paid-Up Life Insurance Rider
attached.
Conversion Option Rider
Overloan Protection Rider
Waiver of Specified Amount (WSA) Rider
Waiver of Monthly Deductions (WMD)
Rider
Children's Life Insurance Rider
Foreign Travel Exclusion Rider
Estate Tax Repeal Benefit Rider
Modified Surrender Value Rider
------------
* NAR Type is described in Schedule B.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 2 -- Effective March 5, 2010
3
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE MARCH 5, 2010
RIDERS THAT PROVIDE ADDITIONAL BENEFITS
BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE (CONTINUED):
Cash Surrender Value Endorsement
Automatic Premium Payment Rider
Additional Premium Rider
Qualified Plan Rider
Owner Designated Settlement Option
Rider
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Primary Insured Term Rider: Provides additional level term life coverage on the
base policy insured.
Other Covered Insured Term Life Rider: Provides level term life coverage on an
insured other than the base policy insured.
Cost of Living Adjustment (COLA) Rider: Provides for biennial face amount
increases, without underwriting, based on increases in the Consumer Price Index.
The maximum amount of any single increase is $50,000. Any increase can be
declined by the policyholder, which stops future increases. Available only at
issue and only for non-substandard issue ages 0 through 60.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Accidental Death Benefit Rider: Pays an additional death benefit if the death
on the insured is caused by a qualifying accident.
Accelerated Benefit Rider: Provides the policyholder up to 100% of the death
benefit, discounted with interest, if the insured's life expectancy is 12 months
or less. After acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
LifeAccess Accelerated Benefit Rider (LAABR): Provides for monthly benefits (up
to 2% of death benefit) if insured meets certain ADL and home-care requirements.
During and after acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
Policy Continuation Rider: Intended to prevent the lapse of highly loaned
policies.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 2 -- Effective March 5, 2010
4
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE MARCH 5, 2010
Policy Protection Rider: Protects the death benefit of the base policy and any
primary insured term rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Enhanced No Lapse Guarantee Rider: Provides that the policy will not lapse as
long as cumulative premiums paid less indebtedness and less withdrawals are
greater than or equal to the cumulative no lapse guarantee premiums. Length of
guarantee varies by issue age.
Lifetime No Lapse Guarantee Rider: Same as Enhanced No Lapse Guarantee Rider
but with lifetime guarantee.
Guaranteed Minimum Accumulation Benefit (GMAB) Rider: Provides, at the end of
the GMAB Guarantee Period (usually 20 years), that the policy Account Value will
be increased, if necessary, to equal the sum of gross premiums paid to that
date. There is a small monthly charge and a minimum cumulative premium
requirement to keep the rider in force.
Paid-Up Life Insurance Rider: Similar to the GMAB rider, with the same
Guarantee Period, a monthly charge, and a cumulative premium requirement. At end
of the Guarantee Period, the owner may elect to change coverage to paid-up life
using the Account Value as a 5% NSP to determine the amount of coverage;
however, the amount of coverage will never be lower than the sum of gross
premiums paid to that date. Once elected, premiums are no longer payable.
Conversion Option Rider: During certain policy years and prior to the insured's
attained age 70, the policy may be converted, without evidence of insurability,
to any permanent plan of life insurance the Ceding Company then makes available
for conversions of this policy.
Overloan Protection Rider: Protects a policy from terminating due to overloan.
Waiver of Specified Amount (WSA) Rider: Waives a specified amount monthly while
the insured is disabled.
Waiver of Monthly Deductions (WMD) Rider: Waives monthly deduction amounts
while the insured is disabled.
Children's Life Insurance Rider: Provides level term life coverage for each
child of the insured.
Foreign Travel Exclusion Rider: Provides a limited death benefit (Account Value
less indebtedness) if the insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
Estate Tax Repeal Benefit Rider: Pays the policy Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Modified Surrender Value Rider: Changes the Cash Surrender Value definition (to
equal the Account Value) if the policy is surrendered within 3 years after the
policy issue date.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 2 -- Effective March 5, 2010
5
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE MARCH 5, 2010
Cash Surrender Value Endorsement: Provides for enhanced Cash Surrender Value
(equal to the current Account Value) in the event of policy surrender in the
first 4 policy years, unless the policy is exchanged under Section 1035 to
another company's policy.
Automatic Premium Payment Rider: Provides for any Scheduled Premium due and
unpaid by the end of any Policy Grace Period to be paid by an automatic
deduction from the Account Value, if the Account Value exceeds the Guaranteed
Cash Value.
Additional Premium Rider: Allows additional premium amounts to be paid at the
same payment intervals as scheduled premiums.
Qualified Plan Rider: This rider indicates that the policy is owned by a
qualified plan, details the policy owner's reporting responsibilities to The
Hartford, and describes features and activities that are unavailable when the
policy is owned by a Qualified Plan.
Owner Designated Settlement Option. This rider allows the policy owner to
designate a Settlement Option to be used for the payment of Death Proceeds.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 2 -- Effective March 5, 2010
6
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE MARCH 5, 2010
LAST SURVIVOR PLANS OF INSURANCE
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE*
-----------------------------------------------------------------------------------------
Hartford Leaders VUL Joint Legacy 2001 CSO M/F S/NS Select & Ultimate ALB A
Hartford Leaders VUL Joint Legacy 2001 CSO M/F S/NS Select & Ultimate ANB A
II
Hartford Advanced Last Survivor UL 2001 CSO M/F S/NS Select & Ultimate ALB B
Hartford Bicentennial UL Joint 2001 CSO M/F S/NS Select & Ultimate ALB B
Freedom
Hartford Bicentennial UL Joint 2001 CSO M/F S/NS Select & Ultimate ANB B
Freedom II
------------
* NAR Type is described in Schedule B.
RIDERS PROVIDING DEATH BENEFITS RIDERS THAT PROVIDE ADDITIONAL BENEFITS
THAT ARE ELIGIBLE FOR REINSURANCE BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Estate Protection Rider (NAR Type LS Exchange Option Rider
is C)
Policy Protection Rider
Estate Tax Repeal Rider
Foreign Travel Exclusion Rider
Guar. Min. Accum. Benefit (GMAB) Rider
Paid-Up Life Insurance Rider
Owner Designated Settlement Option
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Estate Protection Rider: This rider provides last survivor level term life
insurance on the base policy insureds for three years.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
LS Exchange Option Rider: Allows a Last Survivor policy to be split into two
Single Life policies, without new evidence of insurability, if divorce, business
dissolution, or estate-tax repeal or reduction occurs. The face amount of each
new Single Life policy will equal one half of the Last Survivor policy face
amount. Upon a split, reinsurance will continue at point-in-scale rates for each
single life, as documented in Section X.C. (This rider is not available when one
of the insureds is uninsurable or above Table H.)
Policy Protection Rider: Protects the death benefit of the base policy and any
Estate Protection Rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 2 -- Effective March 5, 2010
7
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE MARCH 5, 2010
Estate Tax Repeal Rider: This rider will pay the Account Value less
indebtedness if the Federal Estate Tax Law is fully repealed by December 31,
2010, and the Ceding Company receives a request for this benefit amount from the
policy owner.
Foreign Travel Exclusion: Provides a limited death benefit (Account Value less
indebtedness) if either insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
GMAB Rider and Paid-Up Life Insurance Rider: Same as Single Life riders.
Owner Designated Settlement Option. This rider allows the policy owner to
designate a Settlement Option to be used for the payment of Death Proceeds.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 2 -- Effective March 5, 2010
8
AMENDMENT 3
EFFECTIVE OCTOBER 1, 2008
TO THE
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM
REINSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
TRANSAMERICA LIFE INSURANCE COMPANY ("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
correct the following drafting errors:
- Clarify Section III.A.3 to reflect that it is applicable to Excess Risks
only; and
- [Redacted]
- Correct the title of Exhibit III, pages 2 through 21; and
WHEREAS, the Ceding Company and the Reinsurer wish to provide for approximate
Net Amount at Risk (NAR) Type B reporting in certain circumstances; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
clarify that professional team athletes will be eligible for coverage under the
Foreign National Underwriting Program and that the Ceding Company shall confirm
available capacity for the risk with the Reinsurer; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
reflect the correct Valuation Mortality Tables associate with Last Survivor
Plans of Insurance.
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
1. The above recitals are true and accurate and are incorporated herein.
2. Section III. A.3 is hereby deleted in its entirety and replaced with the
following Section III.A.3:
3. For any Excess Risk, if a risk on the life of a proposed insured was
previously submitted by the Ceding Company on a facultative basis to
the Reinsurer or to any other reinsurer, at least three (3) years
must have elapsed since that previous risk was submitted
facultatively, unless the original reason for submitting
facultatively no longer applies.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 3 -- Effective October 1, 2008
1
3. Article VII, Reinsurance Reporting, is deleted in its entirety and replaced
with the attached, revised Article VII.
4. Schedule A, effective October 1, 2008, is hereby deleted in its entirety and
replaced with the attached, revised Schedule A, effective October 8, 2008 --
March 4, 2010.
5. Schedule B is hereby deleted in its entirety and replaced with the attached,
revised Schedule B.
6. Schedule C is hereby deleted in its entirety and replaced with the attached,
revised Schedule C.
7. Exhibit II is hereby deleted in its entirety and replaced with the attached
Exhibit II.
8. The Ceding Company and the Reinsurer agree that the header on Exhibit III,
pages 2 through 21, shall now be "Annual Rates per $1,000 of Reinsured Net
Amount at Risk."
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of October 1, 2008.
TRANSAMERICA LIFE INSURANCE COMPANY
By: /s/ Xxxxx Xxxxxxxxxx Attest: /s/ Xxxxx Xxxxxxxxx
--------------------------------- -------------------------------
Name: Xxxxx Xxxxxxxxxx Name: Xxxxx Xxxxxxxxx
Title: Senior Vice President Title: 2nd Vice President
Date: January 31, 2011 Date:. 02.02.11
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxxx Xxxxxxxxx Attest: /s/ Xxxxxxx Xxxxxx
--------------------------------- -------------------------------
Name: Xxxxxxx Xxxxxxxxx, FSA, MAAA Name: Xxxxxxx Xxxxxx, FSA, MAAA
Title: Assistant Vice President and Title: Senior Vice President
Actuary Individual Life Product Individual Life Product
Management Management
Date: 2/18/2011 Date:. 2/21/2011
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 3 -- Effective October 1, 2008
2
ARTICLE VII
REINSURANCE REPORTING
EFFECTIVE OCTOBER 1, 2008
A. Accounting Statements and Other Reports
Within thirty (30) days after the close of each calendar month the Ceding
Company shall provide the Reinsurer an electronic accounting statement. The
Ceding Company shall also provide the Reinsurer with additional reports as
provided in Exhibit VII.
For Automatic and Facultative Reinsurance becoming effective during the calendar
month, the Ceding Company will notify the Reinsurer of such new reinsurance
business in the succeeding monthly report. However, the first three monthly
reports under this Agreement will be sent within one hundred twenty (120) days
after the due date of the first monthly report.
The Ceding Company may provide an estimated Net Amount at Risk for new
reinsurance business in the first monthly report in which such business appears.
In the event that the Ceding Company provides an estimated Net Amount at Risk,
it shall provide an actual Net Amount at Risk in subsequent monthly reports.
Additional reports reasonably requested by a Party will be provided by the other
Party in a timely manner.
B. Reporting Format and Medium
The information to be provided by the Ceding Company in these monthly reports to
the Reinsurer shall be in a format and be transmitted using a medium mutually
agreeable to the Parties. As of the Effective Date of this Agreement, the
information to be provided by the Ceding Company in these monthly reports to the
Reinsurer shall be on a self-administered reporting basis as set out in Exhibit
VII.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 3 -- Effective October 1, 2008
3
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008 -- MARCH 4, 2010
SINGLE LIFE PLANS OF INSURANCE
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE*
--------------------------------------------------------------------------------------
Stag UL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Bicentennial UL 2001 CSO M/F S/NS Ultimate ANB A
Founders
Hartford UL CV 1980 CSO M/F S/NS Ultimate ALB A
Stag Wall Street VUL 1980 CSO M/F S/NS Ultimate ALB A
Stag Protector II VUL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Leaders VUL Legacy 2001 CSO M/F Composite Ultimate ANB A
Stag Accumulator II VUL 1980 CSO M/F Unismoke Ultimate ALB A
Hartford Leaders VUL Liberty 1980 CSO M/F Unismoke Ultimate ANB A
(a)
Hartford Leaders VUL Liberty 2001 CSO M/F Composite Ultimate ANB A
(b)
Life Solutions II UL (a) 1980 CSO M/F S/NS Ultimate ALB A
Life Solutions II UL (b) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Advanced Universal 2001 CSO M/F S/NS Ultimate ALB B
Life
Hartford Bicentennial UL 2001 CSO M/F S/NS Ultimate ANB B
Freedom
Hartford Quantum II VUL (a) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Quantum II VUL (b) 2001 CSO M/F S/NS Ultimate ANB A
Hartford ExtraOrdinary Whole 2001 CSO M/F S/NS Ultimate ALB A
Life (a)
Hartford ExtraOrdinary Whole 2001 CSO M/F S/NS Ultimate ANB A
Life (b)
RIDERS PROVIDING DEATH BENEFITS THAT RIDERS THAT PROVIDE ADDITIONAL
ARE ELIGIBLE FOR REINSURANCE: BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Accidental Death Benefit (ADB) Rider
Primary Insured Term Rider Accelerated Benefit Rider (ABR)
Other Covered Insured Term Life LifeAccess Accelerated Ben. Rider
Rider (LAABR)
Cost of Living Adjustment (COLA) Policy Continuation Rider
Rider
Policy Protection Rider (PPR)
Enhanced No Lapse Guarantee Rider
NOTE: NAR Type for term riders above Lifetime No Lapse Guarantee Rider
is C.
For COLA Rider, NAR Type follows Guar. Min. Accum. Benefit (GMAB) Rider
Base Policy to which it is attached. Paid-Up Life Insurance Rider
Conversion Option Rider
Overloan Protection Rider
Waiver of Specified Amount (WSA) Rider
Waiver of Monthly Deductions (WMD)
Rider
Children's Life Insurance Rider
Foreign Travel Exclusion Rider
Estate Tax Repeal Benefit Rider
Modified Surrender Value Rider
Cash Surrender Value Endorsement
Automatic Premium Payment Rider
Additional Premium Rider
* NAR Type is described in Schedule Qualified Plan Rider
B.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 3 -- Effective October 1, 2008
4
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008 -- MARCH 4, 2010
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Primary Insured Term Rider: Provides additional level term life coverage on the
base policy insured.
Other Covered Insured Term Life Rider: Provides level term life coverage on an
insured other than the base policy insured.
Cost of Living Adjustment (COLA) Rider: Provides for biennial face amount
increases, without underwriting, based on increases in the Consumer Price Index.
The maximum amount of any single increase is $50,000. Any increase can be
declined by the policyholder, which stops future increases. Available only at
issue and only for non-substandard issue ages 0 through 60.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Accidental Death Benefit Rider: Pays an additional death benefit if the death
on the insured is caused by a qualifying accident.
Accelerated Benefit Rider: Provides the policyholder up to 100% of the death
benefit, discounted with interest, if the insured's life expectancy is 12 months
or less. After acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
LifeAccess Accelerated Benefit Rider (LAABR): Provides for monthly benefits (up
to 2% of death benefit) if insured meets certain ADL and home-care requirements.
During and after acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
Policy Continuation Rider: Intended to prevent the lapse of highly loaned
policies.
Policy Protection Rider: Protects the death benefit of the base policy and any
primary insured term rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Enhanced No Lapse Guarantee Rider: Provides that the policy will not lapse as
long as cumulative premiums paid less indebtedness less withdrawals are greater
than or equal to the cumulative no lapse guarantee premiums. Length of guarantee
varies by issue age.
Lifetime No Lapse Guarantee Rider: Same as Enhanced No Lapse Guarantee Rider
but with lifetime guarantee.
Guaranteed Minimum Accumulation Benefit (GMAB) Rider: Provides, at the end of
the GMAB Guarantee Period (usually 20 years), that the policy Account Value will
be increased, if necessary, to
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 3 -- Effective October 1, 2008
5
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008 -- MARCH 4, 2010
equal the sum of gross premiums paid to that date. There is a small monthly
charge and a minimum cumulative premium requirement to keep the rider in force.
Paid-Up Life Insurance Rider: Similar to the GMAB rider, with the same
Guarantee Period, a monthly charge, and a cumulative premium requirement. At end
of the Guarantee Period, the owner may elect to change coverage to paid-up life
using the Account Value as a 5% NSP to determine the amount of coverage;
however, the amount of coverage will never be lower than the sum of gross
premiums paid to that date. Once elected, premiums are no longer payable.
Conversion Option Rider: During certain policy years and prior to the insured's
attained age 70, the policy may be converted, without evidence of insurability,
to any permanent plan of life insurance the Ceding Company then makes available
for conversions of this policy.
Overloan Protection Rider: Protects a policy from terminating due to overloan.
Waiver of Specified Amount (WSA) Rider: Waives a specified amount monthly while
the insured is disabled.
Waiver of Monthly Deductions (WMD) Rider: Waives monthly deduction amounts
while the insured is disabled.
Children's Life Insurance Rider: Provides level term life coverage for each
child of the insured.
Foreign Travel Exclusion Rider: Provides a limited death benefit (Account Value
less indebtedness) if the insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
Estate Tax Repeal Benefit Rider: Pays the policy Account Value less
indebtedness if the Federal Estate Tax Law is fully repealed by December 31,
2010, and the Ceding Company receives a request for this benefit amount from the
policy owner.
Modified Surrender Value Rider: Changes the Cash Surrender Value definition (to
equal the Account Value) if the policy is surrendered within 3 years after the
policy issue date.
Cash Surrender Value Endorsement: Provides for enhanced Cash Surrender Value
(equal to the current Account Value) in the event of policy surrender in the
first 4 policy years, unless the policy is exchanged under Section 1035 to
another company's policy.
Automatic Premium Payment Rider: Provides for any Scheduled Premium due and
unpaid by the end of any Policy Grace Period to be paid by an automatic
deduction from the Account Value, if the Account Value exceeds the Guaranteed
Cash Value.
Additional Premium Rider: Allows additional premium amounts to be paid at the
same payment intervals as scheduled premiums.
Qualified Plan Rider: This rider indicates that the policy is owned by a
qualified plan, details the policy owner's reporting responsibilities to the
Ceding Company, and describes features and activities that are unavailable when
the policy is owned by a Qualified Plan.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 3 -- Effective October 1, 2008
6
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008 -- MARCH 4, 2010
LAST SURVIVOR PLANS OF INSURANCE
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE*
-------------------------------------------------------------------------------------
Hartford Leaders VUL Joint 2001 CSO M/F S/NS Ultimate ALB A
Legacy
Hartford Leaders VUL Joint 2001 CSO M/F S/NS Ultimate ANB A
Legacy II
Hartford Advanced Last 2001 CSO M/F S/NS Ultimate ALB B
Survivor UL
Hartford Bicentennial UL Joint 2001 CSO M/F S/NS Ultimate ALB B
Freedom
Hartford Bicentennial UL Joint 2001 CSO M/F S/NS Ultimate ANB B
Freedom II
RIDERS PROVIDING DEATH BENEFITS RIDERS THAT PROVIDE ADDITIONAL BENEFITS
THAT ARE ELIGIBLE FOR BUT THAT ARE NOT ELIGIBLE FOR REINSURANCE:
REINSURANCE
Estate Protection Rider (NAR LS Exchange Option Rider
Type is C)
Policy Protection Rider
Estate Tax Repeal Rider
* NAR Type is described in Foreign Travel Exclusion Rider
Schedule B.
Guar. Min. Accum. Benefit (GMAB) Rider
Paid-Up Life Insurance Rider
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Estate Protection Rider: This rider provides last survivor level term life
insurance on the base policy insureds for three years.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
LS Exchange Option Rider: Allows a Last Survivor policy to be split into two
Single Life policies, without new evidence of insurability, if divorce, business
dissolution, or estate-tax repeal or reduction occurs. The face amount of each
new Single Life policy will equal one half of the Last Survivor policy face
amount. Upon a split, reinsurance will continue at point-in-scale rates for each
single life, as documented in Section X.C. (This rider is not available when one
of the insureds is uninsurable or above Table H.)
Policy Protection Rider: Protects the death benefit of the base policy and any
Estate Protection Rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Estate Tax Repeal Rider: This rider will pay the Account Value less
indebtedness if the Federal Estate Tax Law is fully repealed by December 31,
2010, and the Ceding Company receives a request for this benefit amount from the
policy owner.
Foreign Travel Exclusion: Provides a limited death benefit (Account Value less
indebtedness) if either insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
GMAB Rider and Paid-Up Life Insurance Rider: Same as Single Life riders.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 3 -- Effective October 1, 2008
7
SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
AUTOMATIC REINSURANCE: The Ceding Company shall retain its available retention
on each risk, defined below as the Retained Net Amount at Risk, subject to the
applicable Ceding Company's Treaty Retention Limit shown in Exhibit II.
The Reinsurer will automatically reinsure a portion of the remainder of the
risk, called the Reinsured Net Amount at Risk, as defined below in this Schedule
B.
FACULTATIVE REINSURANCE: The Reinsurer will reinsure X% (as determined at
issue) of the Total Net Amount at Risk for the risk.
TOTAL ALLOCATION LIMIT (TAL): As shown in Exhibit II.
CEDING COMPANY'S TREATY RETENTION LIMIT (CCTRL): As shown in Exhibit II.
CEDING COMPANY'S ALLOCATED RETENTION (CCAR): As shown in Exhibit II.
CURRENT RETENTION (CURRRET) = Current amount of life insurance retained by the
Ceding Company and its affiliated companies on the life for in-force life
insurance coverage. (For Last Survivor risks, see the Last Survivor Limits and
Retention Worksheet in Exhibit II.)
REINSURER'S ALLOCATED RETENTION (ReinsARet): As shown in Exhibit II.
REINSURER'S ATTACHMENT POINT (ReinsAPt): As shown in Exhibit II.
NAR TYPE for the Plan of Insurance to be reinsured under this Agreement, as
shown in Schedule A.
STEP 1 -- DETERMINE TOTAL NET AMOUNT AT RISK FOR THE COVERAGE*
TOTAL NET AMOUNT AT RISK (TOTNAR) =
For NAR TYPE A, Death Benefit minus the Account Value.
For NAR TYPE B, Death Benefit minus the Working Reserve, where
Working Reserve = (i) x (ii)/(iii), and
(i) =
(ii) =
(iii) =
* In cases where the current Working Reserve is not available, the Ceding
Company may estimate such amount using either the most recent Working Reserve or
the Account Value.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 3 -- Effective October 1, 2008
8
SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
STEP 1 -- DETERMINE TOTAL NET AMOUNT AT RISK FOR THE COVERAGE* (CONTINUED)
For NAR TYPE C, Death Benefit.
STEP 2 -- DETERMINE NET AMOUNT AT RISK FOR EACH "LAYER" OF COVERAGE
NAR1 =
NAR2 =
=
NAR3 =
STEP 3 -- DETERMINE THE NAR FOR THE CEDING COMPANY AND THEN FOR THE REINSURER
RETAINED NET AMOUNT AT RISK (RETNAR)
REINSURER'S QUOTA SHARE PERCENTAGE FOR NAR2 (REINSQS2%)
REINSQS2%
REINSURER'S QUOTA SHARE PERCENTAGE FOR NAR3 (ReinsQS3%)
REINSQS3% (See Exhibit II for percentages)
REINSURED NET AMOUNT AT RISK (REINSNAR) =
NOTE: For ReinsQS2% and ReinsQS3%, round percentages to 2 decimal places. (This
rounding may cause slight increases or decreases in the amounts allocated to
each Party.)
MINIMUM AUTOMATIC REINSURANCE CESSION:
MINIMUM FACULTATIVE REINSURANCE CESSION:
LEAD REINSURER: Swiss Re Life & Health America Inc.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 3 -- Effective October 1, 2008
9
SCHEDULE C
FOREIGN NATIONAL UNDERWRITING PROGRAM
FOR SINGLE LIFE PERMANENT POLICIES ONLY; NOT AVAILABLE FOR
LAST SURVIVOR POLICIES
EFFECTIVE OCTOBER 1, 2008
The Ceding Company's Foreign National business shall be automatically reinsured
under the terms of this Agreement, if it meets all the requirements for
Automatic Reinsurance in Section III.A, with the following differences.
TYPE OF REINSURANCE
[Redacted]
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 3 -- Effective October 1, 2008
10
SCHEDULE C
FOREIGN NATIONAL UNDERWRITING PROGRAM
FOR SINGLE LIFE PERMANENT POLICIES ONLY; NOT AVAILABLE FOR
LAST SURVIVOR POLICIES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
ADDITIONAL UNDERWRITING AND RISK CLASS GUIDELINES
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 3 -- Effective October 1, 2008
11
SCHEDULE C
FOREIGN NATIONAL UNDERWRITING PROGRAM
FOR SINGLE LIFE PERMANENT POLICIES ONLY; NOT AVAILABLE FOR
LAST SURVIVOR POLICIES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 3 -- Effective October 1, 2008
12
EXHIBIT II
RETENTION, BINDING, AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
(FOR SPECIFICS ON CALCULATION OF LIMITS WITH LAST SURVIVOR COVERAGE, SEE
WORKSHEET ON PAGE 4)
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 3 -- Effective October 1, 2008
13
EXHIBIT II
RETENTION, BINDING, AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
(FOR SPECIFICS ON CALCULATION OF LIMITS WITH LAST SURVIVOR COVERAGE, SEE
WORKSHEET ON PAGE 4)
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 3 -- Effective October 1, 2008
14
EXHIBIT II
RETENTION, BINDING, AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 3 -- Effective October 1, 2008
15
EXHIBIT II
RETENTION, BINDING, AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
EFFECTIVE OCTOBER 1, 2008
LAST SURVIVOR LIMITS AND RETENTION WORKSHEET
(NOTE: IF ONE LIFE IS UNINSURABLE, TREAT THE RISK AS A SINGLE LIFE RISK FOR THE
PURPOSE OF LIMITS.)
[Redacted]
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 3 -- Effective October 1, 2008
16
AMENDMENT 4
EFFECTIVE JULY 1, 2010
TO THE
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM
REINSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
TRANSAMERICA LIFE INSURANCE COMPANY ("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to include re-priced versions
of the Hartford Bicentennial UL Freedom and Hartford Bicentennial UL Joint
Freedom II products in the Agreement, for policies issued on or after the
effective date of this Amendment.
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
1. The above recitals are true and accurate and are incorporated
herein.
2. Schedule A is deleted in its entirety and replaced with the attached
revised Schedule A.
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 4 -- Effective July 1, 2010
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of July 1, 2010.
TRANSAMERICA LIFE INSURANCE COMPANY
By: /s/ Xxxxx Xxxxxxxxxx Attest: /s/ Xxxxx Xxxxxxxxx
------------------------------ ------------------------------
Name: Xxxxx Xxxxxxxxxx Name: Xxxxx Xxxxxxxxx
Title: Senior Vice President Title: Second Vice President
Date: August 16, 2010 Date: August 17, 2010
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxxx Xxxxxxxxx Attest: /s/ Xxxx Xxxxxxx
------------------------------ ------------------------------
Name: Xxxxxxx Xxxxxxxxx Name: Xxxx Xxxxxxx
Title: Assistant Vice President & Title: Assistant Vice President &
Actuary Actuary
Date: 8/30/2010 Date: 8-30-2010
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 4 -- Effective July 1, 2010
2
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE JULY 1, 2010
SINGLE LIFE PLANS OF INSURANCE
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE*
--------------------------------------------------------------------------------
Stag UL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Bicentennial UL Founders 2001 CSO M/F S/NS Ultimate ANB A
Hartford UL CV 1980 CSO M/F S/NS Ultimate ALB A
Stag Wall Street VUL 1980 CSO M/F S/NS Ultimate ALB A
Stag Protector II VUL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Leaders VUL Legacy 2001 CSO M/F Composite Ultimate ANB A
Stag Accumulator II VUL 1980 CSO M/F Unismoke Ultimate ALB A
Hartford Leaders VUL Liberty (a) 1980 CSO M/F Unismoke Ultimate ANB A
Hartford Leaders VUL Liberty (b) 2001 CSO M/F Composite Ultimate ANB A
Life Solutions II UL (a) 1980 CSO M/F S/NS Ultimate ALB A
Life Solutions II UL (b) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Advanced Universal Life 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Freedom 2001 CSO M/F S/NS Ultimate ANB B
(a)
Hartford Bicentennial UL Freedom 2001 CSO M/F S/NS Ultimate ANB A
(b)
Hartford Quantum II VUL (a) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Quantum II VUL (b) 2001 CSO M/F S/NS Ultimate ANB A
Hartford ExtraOrdinary Whole Life 2001 CSO M/F S/NS Ultimate ALB A
(a)
Hartford ExtraOrdinary Whole Life 2001 CSO M/F S/NS Ultimate ANB A
(b)
Hartford Bicentennial UL Founders 2001 CSO M/F S/NS Ultimate ANB A
II
Hartford Bicentennial UL Founders A
II
Extended Value Option 2001 CSO M/F S/NS Ultimate ANB
------------
* NAR Type is described in Schedule B.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 4 -- Effective July 1, 2010
3
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE JULY 1, 2010
SINGLE LIFE PLANS OF INSURANCE
RIDERS PROVIDING DEATH BENEFITS THAT ARE RIDERS THAT PROVIDE ADDITIONAL
ELIGIBLE FOR REINSURANCE: BENEFITS BUT THAT ARE NOT ELIGIBLE
FOR REINSURANCE:
Primary Insured Term Rider Accidental Death Benefit (ADB) Rider
Other Covered Insured Term Life Rider Accelerated Benefit Rider (ABR)
Cost of Living Adjustment (COLA) Rider LifeAccess Accelerated Ben. Rider
(LAABR)
Policy Continuation Rider
Policy Protection Rider (PPR)
Enhanced No Lapse Guarantee Rider
NOTE: NAR Type for term riders above is C. Lifetime No Lapse Guarantee Rider
For COLA Rider, NAR Type follows Guar. Min. Accum. Benefit (GMAB)
Rider
Base Policy to which it is attached. Paid-Up Life Insurance Rider
Conversion Option Rider
Overloan Protection Rider
* NAR Type is described in Schedule B. Waiver of Specified Amount (WSA)
Rider
Waiver of Monthly Deductions (WMD)
Rider
Children's Life Insurance Rider
Foreign Travel Exclusion Rider
Estate Tax Repeal Benefit Rider
Modified Surrender Value Rider
Cash Surrender Value Endorsement
Automatic Premium Payment Rider
Additional Premium Rider
Qualified Plan Rider
Owner Designated Settlement Option
Rider
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 4 -- Effective July 1, 2010
4
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE JULY 1, 2010
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Primary Insured Term Rider: Provides additional level term life coverage on the
base policy insured.
Other Covered Insured Term Life Rider: Provides level term life coverage on an
insured other than the base policy insured.
Cost of Living Adjustment (COLA) Rider: Provides for biennial face amount
increases, without underwriting, based on increases in the Consumer Price Index.
The maximum amount of any single increase is $50,000. Any increase can be
declined by the policyholder, which stops future increases. Available only at
issue and only for non-substandard issue ages 0 through 60.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Accidental Death Benefit Rider: Pays an additional death benefit if the death on
the insured is caused by a qualifying accident.
Accelerated Benefit Rider: Provides the policyholder up to 100% of the death
benefit, discounted with interest, if the insured's life expectancy is 12 months
or less. After acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
LifeAccess Accelerated Benefit Rider (LAABR): Provides for monthly benefits (up
to 2% of death benefit) if insured meets certain ADL and home-care requirements.
During and after acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
Policy Continuation Rider: Intended to prevent the lapse of highly loaned
policies.
Policy Protection Rider: Protects the death benefit of the base policy and any
primary insured term rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Enhanced No Lapse Guarantee Rider: Provides that the policy will not lapse as
long as cumulative premiums paid less indebtedness and less withdrawals are
greater than or equal to the cumulative no lapse guarantee premiums. Length of
guarantee varies by issue age.
Lifetime No Lapse Guarantee Rider: Same as Enhanced No Lapse Guarantee Rider but
with lifetime guarantee.
Guaranteed Minimum Accumulation Benefit (GMAB) Rider: Provides, at the end of
the GMAB Guarantee Period (usually 20 years), that the policy Account Value will
be increased, if necessary, to equal the sum of gross premiums paid to that
date. There is a small monthly charge and a minimum cumulative premium
requirement to keep the rider in force.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 4 -- Effective July 1, 2010
5
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE JULY 1, 2010
Paid-Up Life Insurance Rider: Similar to the GMAB rider, with the same Guarantee
Period, a monthly charge, and a cumulative premium requirement. At end of the
Guarantee Period, the owner may elect to change coverage to paid-up life using
the Account Value as a 5% NSP to determine the amount of coverage; however, the
amount of coverage will never be lower than the sum of gross premiums paid to
that date. Once elected, premiums are no longer payable.
Conversion Option Rider: During certain policy years and prior to the insured's
attained age 70, the policy may be converted, without evidence of insurability,
to any permanent plan of life insurance the Ceding Company then makes available
for conversions of this policy.
Overloan Protection Rider: Protects a policy from terminating due to overloan.
Waiver of Specified Amount (WSA) Rider: Waives a specified amount monthly while
the insured is disabled.
Waiver of Monthly Deductions (WMD) Rider: Waives monthly deduction amounts while
the insured is disabled.
Children's Life Insurance Rider: Provides level term life coverage for each
child of the insured.
Foreign Travel Exclusion Rider: Provides a limited death benefit (Account Value
less indebtedness) if the insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
Estate Tax Repeal Benefit Rider: Pays the policy Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Modified Surrender Value Rider: Changes the Cash Surrender Value definition (to
equal the Account Value) if the policy is surrendered within 3 years after the
policy issue date.
Cash Surrender Value Endorsement: Provides for enhanced Cash Surrender Value
(equal to the current Account Value) in the event of policy surrender in the
first 4 policy years, unless the policy is exchanged under Section 1035 to
another company's policy.
Automatic Premium Payment Rider: Provides for any Scheduled Premium due and
unpaid by the end of any Policy Grace Period to be paid by an automatic
deduction from the Account Value, if the Account Value exceeds the Guaranteed
Cash Value.
Additional Premium Rider: Allows additional premium amounts to be paid at the
same payment intervals as scheduled premiums.
Qualified Plan Rider: This rider indicates that the policy is owned by a
qualified plan, details the policy owner's reporting responsibilities to The
Hartford, and describes features and activities that are unavailable when the
policy is owned by a Qualified Plan.
Owner Designated Settlement Option. This rider allows the policy owner to
designate a Settlement Option to be used for the payment of Death Proceeds.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 4 -- Effective July 1, 2010
6
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE JULY 1, 2010
LAST SURVIVOR PLANS OF INSURANCE
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE*
------------------------------------------------------------------------------------------
Hartford Leaders VUL Joint Legacy 2001 CSO M/F S/NS Ultimate ALB A
Hartford Leaders VUL Joint Legacy II 2001 CSO M/F S/NS Ultimate ANB A
Hartford Advanced Last Survivor UL 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Joint Freedom 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Joint Freedom II 2001 CSO M/F S/NS Ultimate ANB B
(a)
Hartford Bicentennial UL Joint Freedom II 2001 CSO M/F S/NS Ultimate ANB A
(b)
------------
* NAR Type is described in Schedule B
RIDERS PROVIDING DEATH BENEFITS THAT ARE RIDERS THAT PROVIDE ADDITIONAL
ELIGIBLE FOR REINSURANCE BENEFITS BUT THAT ARE NOT ELIGIBLE
FOR REINSURANCE:
Estate Protection Rider (NAR Type is C) LS Exchange Option Rider
Policy Protection Rider
Estate Tax Repeal Rider
Foreign Travel Exclusion Rider
Guar. Min. Accum. Benefit (GMAB)
Rider
Paid-Up Life Insurance Rider
Owner Designated Settlement Option
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Estate Protection Rider: This rider provides last survivor level term life
insurance on the base policy insureds for three years.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
LS Exchange Option Rider: Allows a Last Survivor policy to be split into two
Single Life policies, without new evidence of insurability, if divorce, business
dissolution, or estate-tax repeal or reduction occurs. The face amount of each
new Single Life policy will equal one half of the Last Survivor policy face
amount. Upon a split, reinsurance will continue at point-in-scale rates for each
single life, as documented in Section X.C. (This rider is not available when one
of the insureds is uninsurable or above Table H.)
Policy Protection Rider: Protects the death benefit of the base policy and any
Estate Protection Rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 4 -- Effective July 1, 2010
7
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE JULY 1, 2010
Estate Tax Repeal Rider: This rider will pay the Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Foreign Travel Exclusion: Provides a limited death benefit (Account Value less
indebtedness) if either insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
GMAB Rider and Paid-Up Life Insurance Rider: Same as Single Life riders.
Owner Designated Settlement Option. This rider allows the policy owner to
designate a Settlement Option to be used for the payment of Death Proceeds.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 4 -- Effective July 1, 2010
8
AMENDMENT 5
EFFECTIVE SEPTEMBER 7, 2010
TO THE
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
TRANSAMERICA LIFE INSURANCE COMPANY ("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to include Hartford Frontier
Indexed Universal Life and Hartford Frontier Indexed Universal Life Extended
Value Option as Base Policies under the Agreement, for policies issued on or
after the effective date of this Amendment.
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
1. The above recitals are true and accurate and are incorporated
herein.
2. Schedule A is deleted in its entirety and replaced with the attached
revised Schedule A.
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 5 -- Effective September 7, 2010
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of September 7, 2010.
TRANSAMERICA LIFE INSURANCE COMPANY
By: /s/ Xxxxx Xxxxxxxxxx Attest: /s/ Xxxxx Xxxxxxxxx
-------------------------------- --------------------------------
Name: Xxxxx Xxxxxxxxxx Name: Xxxxx Xxxxxxxxx
Title: Senior Vice President Title: 2nd Vice President
Date: September 29, 2010 Date: October 4, 2010
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxxx Xxxxxxxxx Attest: /s/ Xxxx Xxxxxx
-------------------------------- --------------------------------
Name: Xxxxxxx Xxxxxxxxx, FSA, MAAA Name: Xxxx Xxxxxx, FSA, MAAA
Title: Assistant Vice President and Title: Senior Vice President
Actuary
Individual Life Product Individual Life Product
Management Management
Date: 10/22/2010 Date: 10/22/2010
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 5 -- Effective September 7, 2010
2
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE SEPTEMBER 7, 2010
SINGLE LIFE PLANS OF INSURANCE
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE*
-------------------------------------------------------------------------------------------------------------
Stag UL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Bicentennial UL Founders 2001 CSO M/F S/NS Ultimate ANB A
Hartford UL CV 1980 CSO M/F S/NS Ultimate ALB A
Stag Wall Street VUL 1980 CSO M/F S/NS Ultimate ALB A
Stag Protector II VUL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Leaders VUL Legacy 2001 CSO M/F Composite Ultimate ANB A
Stag Accumulator II VUL 1980 CSO M/F Unismoke Ultimate ALB A
Hartford Leaders VUL Liberty (a) 1980 CSO M/F Unismoke Ultimate ANB A
Hartford Leaders VUL Liberty (b) 2001 CSO M/F Composite Ultimate ANB A
Life Solutions II UL (a) 1980 CSO M/F S/NS Ultimate ALB A
Life Solutions II UL (b) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Advanced Universal Life 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Freedom (a) 2001 CSO M/F S/NS Ultimate ANB B
Hartford Bicentennial UL Freedom (b) 2001 CSO M/F S/NS Ultimate ANB A
Hartford Quantum II VUL (a) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Quantum II VUL (b) 2001 CSO M/F S/NS Ultimate ANB A
Hartford ExtraOrdinary Whole Life (a) 2001 CSO M/F S/NS Ultimate ALB A
Hartford ExtraOrdinary Whole Life (b) 2001 CSO M/F S/NS Ultimate ANB A
Hartford Bicentennial UL Founders II 2001 CSO M/F S/NS Ultimate ANB A
Hartford Bicentennial UL Founders II
Extended Value Option 2001 CSO M/F S/NS Ultimate ANB A
Hartford Frontier Indexed Universal Life 2001 CSO M/F S/NS Ultimate ANB A
Hartford Frontier Indexed Universal Life
Extended Value Option 2001 CSO M/F S/NS Ultimate ANB A
------------
* NAR Type is described in Schedule B.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 5 -- Effective September 7, 2010
3
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE SEPTEMBER 7, 2010
SINGLE LIFE PLANS OF INSURANCE
RIDERS PROVIDING DEATH BENEFITS RIDERS THAT PROVIDE ADDITIONAL BENEFITS
THAT ARE ELIGIBLE FOR REINSURANCE: BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Accidental Death Benefit (ADB) Rider
Primary Insured Term Rider Accelerated Benefit Rider (ABR)
Other Covered Insured Term Life LifeAccess Accelerated Ben. Rider
Rider (LAABR)
Cost of Living Adjustment (COLA) Policy Continuation Rider
Rider
Policy Protection Rider (PPR)
Enhanced No Lapse Guarantee Rider
NOTE: NAR Type for term riders Lifetime No Lapse Guarantee Rider
above is C.
For COLA Rider, NAR Type follows Guar. Min. Accum. Benefit (GMAB) Rider
Base Policy to which it is Paid-Up Life Insurance Rider
attached.
Conversion Option Rider
Overloan Protection Rider
Waiver of Specified Amount (WSA) Rider
Waiver of Monthly Deductions (WMD)
Rider
Children's Life Insurance Rider
Foreign Travel Exclusion Rider
Estate Tax Repeal Benefit Rider
Modified Surrender Value Rider
Cash Surrender Value Endorsement
Automatic Premium Payment Rider
Additional Premium Rider
Qualified Plan Rider
Owner Designated Settlement Option
Rider
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 5 -- Effective September 7, 2010
4
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE SEPTEMBER 7, 2010
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Primary Insured Term Rider: Provides additional level term life coverage on the
base policy insured.
Other Covered Insured Term Life Rider: Provides level term life coverage on an
insured other than the base policy insured.
Cost of Living Adjustment (COLA) Rider: Provides for biennial face amount
increases, without underwriting, based on increases in the Consumer Price Index.
The maximum amount of any single increase is $50,000. Any increase can be
declined by the policyholder, which stops future increases. Available only at
issue and only for non-substandard issue ages 0 through 60.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Accidental Death Benefit Rider: Pays an additional death benefit if the death on
the insured is caused by a qualifying accident.
Accelerated Benefit Rider: Provides the policyholder up to 100% of the death
benefit, discounted with interest, if the insured's life expectancy is 12 months
or less. After acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
LifeAccess Accelerated Benefit Rider (LAABR): Provides for monthly benefits (up
to 2% of death benefit) if insured meets certain ADL and home-care requirements.
During and after acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
Policy Continuation Rider: Intended to prevent the lapse of highly loaned
policies.
Policy Protection Rider: Protects the death benefit of the base policy and any
primary insured term rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Enhanced No Lapse Guarantee Rider: Provides that the policy will not lapse as
long as cumulative premiums paid less indebtedness and less withdrawals are
greater than or equal to the cumulative no lapse guarantee premiums. Length of
guarantee varies by issue age.
Lifetime No Lapse Guarantee Rider: Same as Enhanced No Lapse Guarantee Rider but
with lifetime guarantee.
Guaranteed Minimum Accumulation Benefit (GMAB) Rider: Provides, at the end of
the GMAB Guarantee Period (usually 20 years), that the policy Account Value will
be increased, if necessary, to equal the sum of gross premiums paid to that
date. There is a small monthly charge and a minimum cumulative premium
requirement to keep the rider in force.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 5 -- Effective September 7, 2010
5
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE SEPTEMBER 7, 2010
Paid-Up Life Insurance Rider: Similar to the GMAB rider, with the same Guarantee
Period, a monthly charge, and a cumulative premium requirement. At end of the
Guarantee Period, the owner may elect to change coverage to paid-up life using
the Account Value as a 5% NSP to determine the amount of coverage; however, the
amount of coverage will never be lower than the sum of gross premiums paid to
that date. Once elected, premiums are no longer payable.
Conversion Option Rider: During certain policy years and prior to the insured's
attained age 70, the policy may be converted, without evidence of insurability,
to any permanent plan of life insurance the Ceding Company then makes available
for conversions of this policy.
Overloan Protection Rider: Protects a policy from terminating due to overloan.
Waiver of Specified Amount (WSA) Rider: Waives a specified amount monthly while
the insured is disabled.
Waiver of Monthly Deductions (WMD) Rider: Waives monthly deduction amounts while
the insured is disabled.
Children's Life Insurance Rider: Provides level term life coverage for each
child of the insured.
Foreign Travel Exclusion Rider: Provides a limited death benefit (Account Value
less indebtedness) if the insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
Estate Tax Repeal Benefit Rider: Pays the policy Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Modified Surrender Value Rider: Changes the Cash Surrender Value definition (to
equal the Account Value) if the policy is surrendered within 3 years after the
policy issue date.
Cash Surrender Value Endorsement: Provides for enhanced Cash Surrender Value
(equal to the current Account Value) in the event of policy surrender in the
first 4 policy years, unless the policy is exchanged under Section 1035 to
another company's policy.
Automatic Premium Payment Rider: Provides for any Scheduled Premium due and
unpaid by the end of any Policy Grace Period to be paid by an automatic
deduction from the Account Value, if the Account Value exceeds the Guaranteed
Cash Value.
Additional Premium Rider: Allows additional premium amounts to be paid at the
same payment intervals as scheduled premiums.
Qualified Plan Rider: This rider indicates that the policy is owned by a
qualified plan, details the policy owner's reporting responsibilities to The
Hartford, and describes features and activities that are unavailable when the
policy is owned by a Qualified Plan.
Owner Designated Settlement Option. This rider allows the policy owner to
designate a Settlement Option to be used for the payment of Death Proceeds.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 5 -- Effective September 7, 2010
6
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE SEPTEMBER 7, 2010
LAST SURVIVOR PLANS OF INSURANCE
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE *
------------------------------------------------------------------------------------------
Hartford Leaders VUL Joint Legacy 2001 CSO M/F S/NS Ultimate ALB A
Hartford Leaders VUL Joint Legacy 2001 CSO M/F S/NS Ultimate ANB A
II
Hartford Advanced Last Survivor UL 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Joint 2001 CSO M/F S/NS Ultimate ALB B
Freedom
Hartford Bicentennial UL Joint 2001 CSO M/F S/NS Ultimate ANB B
Freedom II (a)
Hartford Bicentennial UL Joint 2001 CSO M/F S/NS Ultimate ANB A
Freedom II (b)
------------
* NAR Type is described in Schedule B
RIDERS PROVIDING DEATH BENEFITS RIDERS THAT PROVIDE ADDITIONAL BENEFITS
THAT ARE ELIGIBLE FOR REINSURANCE BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Estate Protection Rider (NAR Type LS Exchange Option Rider
is C)
Policy Protection Rider
Estate Tax Repeal Rider
Foreign Travel Exclusion Rider
Guar. Min. Accum. Benefit (GMAB) Rider
Paid-Up Life Insurance Rider
Owner Designated Settlement Option
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Estate Protection Rider: This rider provides last survivor level term life
insurance on the base policy insureds for three years.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
LS Exchange Option Rider: Allows a Last Survivor policy to be split into two
Single Life policies, without new evidence of insurability, if divorce, business
dissolution, or estate-tax repeal or reduction occurs. The face amount of each
new Single Life policy will equal one half of the Last Survivor policy face
amount. Upon a split, reinsurance will continue at point-in-scale rates for each
single life, as documented in Section X.C. (This rider is not available when one
of the insureds is uninsurable or above Table H.)
Policy Protection Rider: Protects the death benefit of the base policy and any
Estate Protection Rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 5 -- Effective September 7, 2010
7
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE SEPTEMBER 7, 2010
Estate Tax Repeal Rider: This rider will pay the Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Foreign Travel Exclusion: Provides a limited death benefit (Account Value less
indebtedness) if either insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
GMAB Rider and Paid-Up Life Insurance Rider: Same as Single Life riders.
Owner Designated Settlement Option. This rider allows the policy owner to
designate a Settlement Option to be used for the payment of Death Proceeds.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 5 -- Effective September 7, 2010
8
AMENDMENT 6
EFFECTIVE AUGUST 1, 2010
TO THE
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
TRANSAMERICA LIFE INSURANCE COMPANY ("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement,
effective August 1, 2010, to reflect a revised provision for new business.
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
1. The above recitals are true and accurate and are incorporated
herein.
2. Article XX - TERMINATION OF THIS AGREEMENT FOR NEW BUSINESS is
deleted in its entirety and replaced with the attached, revised
Article XX.
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 6 -- Effective August 1, 2010
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below.
TRANSAMERICA LIFE INSURANCE COMPANY
By: /s/ Xxxxx Xxxxxxxxxx Attest: /s/ Xxxxx Xxxxxxxxx
------------------------------ ------------------------------
Name: Xxxxx Xxxxxxxxxx Name: Xxxxx Xxxxxxxxx
Title: Senior Vice President Title: 2nd Vice President
Date: September 29, 2010 Date: October 6, 2010
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxxx Xxxxxxxxx Attest: /s/ Xxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxxx Xxxxxxxxx, FSA, MAAA Name: Xxxx Xxxxxx, FSA, MAAA
Title: Asst. Vice President and Title: Senior Vice President
Actuary Individual Life Individual Life Product
Product Management Management
Date: 10/22/2010 Date: 10/22/2010
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 6 -- Effective August 1, 2010
2
ARTICLE XX
TERMINATION OF THIS AGREEMENT FOR NEW BUSINESS
A. Either Party may terminate this Agreement, as it applies to the reinsurance
of new policies being issued by the Ceding Company:
(1) immediately upon written notice to the other Party, if that other
Party becomes insolvent as described in Article XV; or
(2) with one hundred eighty (180) calendar days advance written notice
to the other Party.
B. After termination of this Agreement for new business, the Parties shall
remain liable under the terms of this Agreement for:
(1) reinsurance of policies that becomes effective prior to such
termination of this Agreement;
(2) reinsurance of policies with an application date on or before the
effective date of termination; and
(3) reinsurance that becomes effective as a result of coverage changes
described in accordance with Article X.
C. The Ceding Company shall continue to cede, and the Reinsurer shall continue
to accept, any new business issued prior to the termination of this Agreement.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and TLIC
Amendment 6 -- Effective August 1, 2010
3
