EXHIBIT 1.1
AUTOMATIC YEARLY RENEWABLE TERM
REINSURANCE AGREEMENT
between
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
HARTFORD LIFE INSURANCE COMPANY
and
ITT HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
and
SWISS RE LIFE COMPANY AMERICA
Effective: October 1, 1996
ARTICLES
I. Parties to the Agreement............................................. 1
II. Reinsurance Coverage................................................. 1
III. Liability............................................................ 3
IV. Reinsurance Premiums................................................. 4
V. Oversights........................................................... 5
VI. Changes, Reductions and Terminations................................. 6
VII. Increase in Retention................................................ 7
VIII. Reinstatement........................................................ 8
IX. Expenses............................................................. 9
X. Claims............................................................... 9
XI. Extra-Contractual Damages............................................11
XII. Inspection of Records................................................12
XIII. DAC Tax - Section 1.848-2 (g)(8) Election............................12
XIV. Insolvency...........................................................13
XV. Offset...............................................................14
XVI. Arbitration..........................................................14
XVII. Termination..........................................................15
XVIII. Entire Agreement and Amendments......................................15
XIX. Effective Date.......................................................16
XX. Execution............................................................17
SCHEDULES
A Specifications
B Basis of Reinsurance
EXHIBITS
I Reinsurance Premiums
II Retention, Binding, and Issue Limits
All Schedules and Exhibits attached will be considered part of this Reinsurance
Agreement.
ARTICLE I
PARTIES TO THE AGREEMENT
This Agreement is between three Hartford Life Companies, Hartford Life
Insurance Company, Hartford Life and Accident Insurance Company, and ITT
Hartford Life and Annuity Insurance Company (collectively referred to as the
Ceding Company) and Swiss Re Life Company America (referred to as the
Reinsurer). The Reinsurer agrees that the terms and conditions of this
Agreement shall apply to each of the Hartford Life Companies individually,
unless otherwise set forth herein.
ARTICLE II
REINSURANCE COVERAGE
Reinsurance under this Agreement will apply to insurance issued by Ceding
Company on the Plans of Insurance shown in Schedule A. Such Plans of
Insurance shall be reinsured with the Reinsurer on an automatic basis,
subject to the requirements set forth in Section A below or on a facultative
basis, subject to the requirements set forth in Section B below. The
specifications for all reinsurance under this Agreement are provided in
Schedule A.
A. Requirements for Automatic Reinsurance
For risks which meet the requirements for automatic reinsurance as set
forth below, Reinsurer will participate in a reinsurance pool whereby
Reinsurer will automatically reinsure a portion of the insurance risks
as indicated in Schedule A. The requirements for automatic reinsurance
are as follows:
1. Each life must be a resident of the United States or Canada at the
time of application.
2. Each life must be underwritten according to the Ceding Company's
standard underwriting practices and guidelines. Any life falling into
the category of special underwriting programs will be excluded from
this Agreement unless previously agreed to by the Reinsurer via a
written amendment.
3. Any risk offered on a facultative basis by the Ceding Company to the
Reinsurer or any other company will not qualify for automatic
reinsurance under this Agreement for the same risk and same life.
4. The maximum issue age on any risk will be age 85.
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5. The mortality rating on each risk must not exceed Table 16, Table P,
or 500%, or its equivalent, as shown in the Ceding Company's retention
schedule, on a flat extra premium basis. However, one life may be
uninsurable if the other life meets the preceding requirements.
6. The total face amount of insurance for the Plans of Insurance in
Schedule A to be reinsured on an automatic basis must not exceed the
Automatic Issue Limits in Exhibit II.
7. The total amount of insurance issued and applied for in all companies
on each life must not exceed the jumbo limits as stated in Exhibit II.
8. The Ceding Company shall retain its maximum limit of retention for
the age and risk classification of each life, as shown in Exhibit II,
either on previous insurance or insurance currently applied for.
B. Requirements for Facultative Reinsurance
1. If the requirements for automatic reinsurance are met, but the Ceding
Company prefers to apply for facultative reinsurance with the
Reinsurer, or if the requirements for automatic reinsurance are not met
and the Ceding Company applies for facultative reinsurance with the
Reinsurer, then the Ceding Company must submit to the Reinsurer all the
papers relating to the insurability of each life for facultative
reinsurance.
2. For applications for facultative reinsurance, Ceding Company will send
copies of all of the papers relating to the insurability of each life
to the Reinsurer. After the Reinsurer has examined the request, the
Reinsurer will promptly notify the Ceding Company of the underwriting
offer subject to additional requirements or the final underwriting
offer. The final underwriting offer on the risk will automatically
terminate upon the earlier of the withdrawal of the application or 120
days from the date of the final offer, unless accepted earlier.
3. Notwithstanding the above, if the requirements for automatic
reinsurance are met except that the face amount of insurance applied for
is greater than the Automatic Issue Limit, but does not exceed the Auto
Process Limit, then the Ceding Company will submit to the Lead
Reinsurer, (as designated in Schedule A), all papers relating to the
insurability of each life. The Lead Reinsurer
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shall review the papers to determine if the risk should be
reinsured by the Pool, and, if so, on what basis. The Lead Reinsurer
shall provide Ceding Company with a response within 24 hours of receipt
of the papers. Approval of the Lead Reinsurer shall be binding on all
other Pool members. This process shall be known as Automatic
Processing and subject to the limitations in Exhibit II.
C. Basis of Reinsurance
Reinsurance under this Agreement will be on the basis as stated in
Schedule B.
D. Policy Forms.
When requested, the Ceding Company will furnish the Reinsurer with a copy of
each policy, rider, rate book, and applicable sales or marketing material
which applies to the life insurance reinsured hereunder.
ARTICLE III
LIABILITY
A. The Reinsurer's liability for automatic reinsurance will begin
simultaneously with the Ceding Company's liability except for those
risks which qualify for automatic reinsurance but are submitted on a
facultative basis.
B. The Reinsurer's liability for facultative reinsurance will begin
simultaneously with the Ceding Company's liability once the Reinsurer
has accepted the application for facultative reinsurance and the Ceding
Company has accepted the offer.
C. In no event shall the 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 was not properly
licensed.
D. The Reinsurer's liability for reinsurance on each risk will
terminate when the Ceding Company's liability terminates.
E. The liability of each pool member shall be separate and not joint
with the other pool members.
F. Payment of reinsurance premiums is a condition precedent to the
Reinsurer's liability.
G. The Reinsurer shall establish reserves on Reinsurer's portion of the
policy on the reserve basis specified in Schedule B.
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ARTICLE IV
REINSURANCE PREMIUMS
A. Computation.
Premiums for reinsurance under this Agreement will be computed as described
in Exhibit I.
B. Premium Accounting.
1. Payment of Reinsurance Premiums.
For automatic and facultative reinsurance, following the close of each
calendar month, the Ceding Company will send the Reinsurer a statement
and a listing of new business, changes and terminations.
If a net reinsurance premium balance is payable to the Reinsurer, the
Ceding Company will forward this balance within (60) sixty days after
the close of each month.
If a net reinsurance premium balance is payable to the Ceding
Company, the balance due will be subtracted from the reinsurance
premium payable by Ceding Company for the current month and any
remaining balance due the Ceding Company shall be paid by the
Reinsurer within (60) sixty days after the Ceding Company submits the
statement.
2. Non-Payment of Premium
If reinsurance premiums are delinquent, the Reinsurer has the right
to terminate the reinsurance risks on those policies listed on the
delinquent monthly statement by giving the Ceding Company ninety
days' advance written notice. If the delinquent premiums have not
been paid as of the close of the ninety-day period, the Reinsurer's
liability will terminate for the risks described in the delinquency
notice.
Regardless of the termination, the Ceding Company will continue to be
liable to the Reinsurer for all unpaid reinsurance premiums earned.
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3. Reinstatement
The Ceding Company may reinstate the risks terminated due to non
payment of reinsurance premium within sixty days after the effective
date of termination by paying the unpaid reinsurance premiums for the
risks in force prior to the termination. However, the Reinsurer will
not be liable for any claim incurred between the date of termination
and reinstatement. The effective date of reinstatement will be the
date the required back premiums are received.
4. Currency
The reinsurance premiums and benefits payable under this Agreement
will be payable in the lawful money of the United States.
5. Detailed Listing
The Ceding Company will send the Reinsurer a detailed listing of all
reinsurance in force as of the close of the immediately preceding
calendar year.
6. Guaranteed Rates
For technical reasons relating to the uncertain status of deficiency
reserve requirements by the various state insurance departments, the
life reinsurance rates cannot be guaranteed for more than one year.
On all reinsurance ceded at these rates, however, the Reinsurer
anticipates continuing to accept premiums on the basis of the rates
shown in Exhibit I.
ARTICLE V
OVERSIGHTS
If there is an unintentional oversight or misunderstanding in the
administration of this Agreement by Ceding Company or Reinsurer, it can be
corrected provided the correction takes place within a reasonable time after
the oversight or misunderstanding is first discovered. Both Ceding Company
and the Reinsurer will be restored to the position they would have occupied
had the oversight or misunderstanding not occurred.
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ARTICLE VI
CHANGES, REDUCTIONS AND TERMINATIONS
A. Replacement or Change
If there is a contractual change or non-contractual replacement of
the insurance reinsured under this Agreement where full underwriting
evidence according to the Ceding Company's regular underwriting rules
is not required, the insurance may continue to be reinsured with the
Reinsurer provided it meets the minimum reinsurance cession amount
stated in Schedule A. If a non-contractual change is requested on a
facultatively reinsured policy, the Reinsurer must consent to the
change.
B. Increases or Decreases
1. If the policy face amount of a risk reinsured automatically under
this Agreement increases and:
a. The increase is subject to new underwriting evidence, then the
provisions of Article Ii, Section A, shall apply to the increase
in reinsurance.
b. The increase is not subject to new underwriting evidence, then
Reinsurer will accept automatically the increase in reinsurance but
not to exceed the automatic binding limit.
2. If the policy face amount increases, the Ceding Company's retention
will be filled first, then any remaining risk of the increase will be
ceded to the Reinsurer as of the effective date of the increase. If
the policy face amount is reduced, the reinsurance will be reduced
first, thereby maintaining the Ceding Company's retention. Reinsurer
will refund to Ceding Company all unearned reinsurance premiums not
including policy fees, less applicable allowances, arising from
reductions, terminations and changes as described in this Article.
3. In the event of a reduction in the face amount of a policy which
was ceded facultatively, the Reinsurer's percentage of the reduced
face amount should be the same percentage of the initial reinsurance
ceded.
4. Increases in face amount of policies reinsured on a facultative
basis, will be submitted to the Reinsurer for acceptance.
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C. Reduction in Retained Coverage
If any portion of the aggregate insurance retained by Ceding Company
on an individual life reduces or terminates, any reinsurance under
this Agreement based on the same life may also be reduced or
terminated. Ceding Company will reduce the reinsurance by applying
the retention limits which were in effect at the time each policy was
issued. Ceding Company will not be required to retain an amount in
excess of its regular retention limit for the age, mortality rating
and risk classification at the time of issue for any policy on which
reinsurance is being reduced.
The reinsurance to be terminated or reduced will be determined by
chronological order in which the reinsurance was first reinsured,
thereby reducing or terminating the oldest risks first.
D. Multiple Reinsurers
If a risk is shared by more than one reinsurer, Reinsurer's
percentage of any increased or reduced reinsurance will be the same
as its initial percentage of the reinsurance for that risk.
E. Termination
If the policy for a risk reinsured under this Agreement is
terminated, the reinsurance for the risk involved will be terminated
on the effective date of termination.
F. Facultative
On facultative reinsurance, if Ceding Company wishes to reduce the
mortality rating, this reduction will be subject to and reinsured
under the facultative provisions of this Agreement.
ARTICLE VII
INCREASE IN RETENTION
A. If the Ceding Company should increase the retention limits as
listed in Exhibit II, prompt written notice of the increase must be
given to the Reinsurer.
B. In the event of an increase in retention, the Ceding Company will
have the option of recapturing the reinsurance under this Agreement
when the retention limit increases. The Ceding Company may exercise
its option to
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recapture by giving written notice to the Reinsurer within ninety
days after the effective date of the increase.
C. If the Ceding Company exercises its option to recapture, then
1. The Ceding Company must reduce the reinsurance on each risk on
which the Ceding Company retained the maximum retention limit that
was in effect at the time the reinsurance was ceded to the Reinsurer.
2. No recapture will be made to reinsurance on a risk if (a) the
Ceding Company retained a special retention limit less than the
maximum retention limit in effect at the time the reinsurance was
ceded to the Reinsurer, or if (b) the Ceding Company did not retain
insurance on the risk.
3. The Ceding Company must increase its total amount of insurance on
the risk up to the new retention limit by reducing the reinsurance.
If a risk is shared by more than one reinsurer, the Reinsurer's
percentage of the reduced reinsurance will be the same as the initial
percentage on the individual risk.
4. Upon increasing the retention limit, the reduction in reinsurance
will become effective on the next annual premium anniversary of
those policies that have been inforce for at least ten (10) years.
ARTICLE VIII
REINSTATEMENT
If an insurance policy lapses for nonpayment of premium and is reinstated under
the Ceding Company's terms and rules, the reinsurance will be reinstated by the
Reinsurer as follows:
A. Automatic Cases:
The Ceding Company must pay the Reinsurer all back reinsurance
premiums in the same manner as the Ceding Company received insurance
premiums under the policy. When the policy is reinstated by the
Ceding Company, the reinsurance will be automatically reinstated.
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B. Facultative Cases:
If the Ceding Company requires reinstatement evidence of
insurability, the Ceding Company will submit it to the Reinsurer for
approval. In such cases, the Reinsurer's approval is required for
the reinsurance to be reinstated. Upon the Reinsurer's approval, the
Ceding Company must pay the Reinsurer all back reinsurance premiums
in the same manner as the Ceding Company received insurance premium
under the policy.
ARTICLE IX
EXPENSES
The Ceding Company must pay the expense of all medical examinations, inspection
fees and other charges in connection with the issuance of the insurance.
ARTICLE X
CLAIMS
A. Liability
The Reinsurer's liability for the insurance benefits reinsured under
this Agreement will be the same as the Ceding Company's liability for
such benefits. All reinsurance claim settlements will be subject to
the terms and conditions of the particular contract under which the
Ceding Company is liable.
B. Notification
When the Ceding Company is advised of a claim, the Reinsurer must be
notified promptly.
C. Claim Payment
1. Automatic Reinsurance on a Risk
If a claim is made on a risk reinsured automatically under this
Agreement and is not contested by the Ceding Company, Reinsurer will
abide by the issue as it is settled by the Ceding Company. Copies of
proofs or other written matters relating to any claim reimbursements
under this Agreement shall be furnished to the Reinsurer upon written
request. The Ceding Company will receive payment of the reinsurance
proceeds from the Reinsurer when the Ceding Company makes the
settlement of the policy proceeds and delivers a copy of the proof of
death, check copy or proof of payment and the claimant's statement to
the Reinsurer.
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2. Facultative Reinsurance on a Risk
If a claim is made on a risk reinsured facultatively under this
Agreement, the Ceding Company shall submit to Reinsurer all relevant
and/or requested documents and papers related to the claim along with
Ceding Company's recommendation. Ceding Company shall then wait five
days from the date of mailing during which time Reinsurer shall have
the opportunity to advise Ceding Company of its consent or
disagreement with the recommendation. In the event Reinsurer does
not contact Ceding Company within the five day period, Reinsurer
shall be deemed to have approved the recommendation and Ceding
Company shall be authorized to act accordingly. The Ceding Company
will receive payment of the reinsurance proceeds from Reinsurer when
Ceding Company makes the settlement of the policy proceeds and
delivers proof of payment to the Reinsurer.
3. Payment of Reinsurance Proceeds
Payment of life reinsurance proceeds will be made in a single sum
regardless of the Ceding Company's mode of settlement with the payee.
D. Contested Claims
The Ceding Company must promptly notify the Reinsurer of any intent
to contest a claim reinsured under this Agreement or to assert
defenses. If the Ceding Company's contest of such claim results in
the increase or reduction of liability, the Reinsurer will share in
this increase or reduction. The Reinsurer's share of the increase or
decrease shall be proportional to their share of the met amount at
risk on the date of death of the insured.
If the Reinsurer should decline to participate in the contest or
assertion of defenses, the Reinsurer will then release all of the
liability by paying the Ceding Company the full amount of reinsurance
and not sharing in any subsequent increase or reduction in liability.
E. Misstatement of Age or Sex
If the amount of insurance provided by the policy or policies
reinsured under this Agreement is increased or reduced because of
misstatement of age or sex established after the death of the
insured, the Reinsurer will share with the Ceding Company in this
increase or reduction.
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F. Routine Expenses
The Ceding Company will pay the routine expenses incurred in
connection with settling claims. These expenses may include
compensation of agent and employees and the cost of routine
investigations such as inspection reports.
G. Non-Routine Expenses
The Reinsurer will share with the Ceding Company all expenses that
are not routine. Expenses that are not routine are those directly
incurred in connection with the contest or the possibility of a
contest of a claim or the assertion of defenses, including legal
expenses. The expenses will be shared in proportion to the net
amount at risk for the Ceding Company and Reinsurer. However, if the
Reinsurer has released the liability under Section D of this Article,
the Reinsurer will not share in any expenses incurred after the date
of the Reinsurer's release.
▇. ▇▇▇▇▇▇▇▇▇▇▇ Period
If, during the contestable period, Ceding Company is notified of the
death of the first joint insured, the Ceding Company will investigate
the case.
ARTICLE XI
EXTRA-CONTRACTUAL DAMAGES
In no event will the Reinsurer have any liability for any extra-contractual
damages which are awarded against the Ceding Company as a result of acts,
omissions or course of conduct committed by the Ceding Company in connection
with the insurance reinsured under this Agreement.
The Reinsurer does recognize that circumstances may arise under which the
Reinsurer, in equity, should share, to the extent permitted by law, in paying
certain assessed damages. Such circumstances are difficult to define in
advance, but involve those situations in which the Reinsurer was an active
party in the act, omission or course of conduct which ultimately results in
the assessment of such damages. The extent of such sharing is dependent on
good faith assessment of culpability in each case, but all factors being
equal, the division of any such assessment would be in the proportion of
total risk accepted by each party for the plan of insurance involved.
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ARTICLE XII
INSPECTION OF RECORDS
Each party will have the right, at any reasonable time and upon reasonable
notice, to inspect the other party's books and documents which relate to
reinsurance under this Agreement.
ARTICLE XIII
DAC TAX
SECTION 1.848-2(g)(8) ELECTION
A. The Reinsurer and the Ceding Company hereby agree to the
following pursuant to section 1.848-2(g)(8) of the Income Tax
Regulations issued December 1992 under Section 848 of the Internal
Revenue Code of 1986, as amended. This election shall be effective
for 1993 and for all subsequent taxable years for which this
Agreement remains in effect.
B. The terms used in this Article are defined by reference to
Regulation Section 1.848-2 in effect December 1992.
C. The party with 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
deduction limitation of section 848(c)(1).
D. Both parties agree to exchange information pertaining to the amount
of net consideration under this Agreement each year to ensure
consistency or as otherwise required by the Internal Revenue Service.
E. The Ceding Company will submit to the Reinsurer by May 1 of each
year a schedule of the calculation of the net consideration for the
preceding calendar year. This schedule of calculations will be
accompanied by a statement signed by an officer of the Ceding Company
stating that such net consideration will be reported in the tax
return for the preceding calendar year.
F. The Reinsurer may contest such calculation by providing an
alternative calculation to the Ceding Company in writing within 30
days of receipt of Ceding Company's calculation. If the Reinsurer
does not notify the Ceding Company, Reinsurer will report the net
consideration as determined by the Ceding Company in the tax return
for the preceding calendar year.
G. If the Reinsurer contests the Ceding Company's calculation of the net
consideration, both parties will act in good faith to reach an agreement as
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to the correct amount within thirty (30) days of the date the
Reinsurer submits their alternative calculation. If both parties
reach agreement on an amount of net consideration, both parties shall
report such amount in their respective tax returns for the previous
calendar year.
ARTICLE XIV
INSOLVENCY
A. Insolvency of Reinsurer
If the Reinsurer becomes insolvent as determined by the Department of
Insurance responsible for such determination, amounts due the
Reinsurer will be paid net of the terms of this Agreement and
directly to the liquidator, receiver, or statutory successor without
decrease. All reinsurance ceded under this Agreement may be
recaptured by the Ceding Company without charge or penalty as of the
date Reinsurer fails to meet its obligations under this Agreement.
B. Insolvency of Ceding Company
If Hartford Life Insurance Company, Hartford Life and Accident
Insurance Company or ITT Hartford Life and Annuity Insurance Company
should become insolvent, all reinsurance under this Agreement
covering risks ceded by that particular company will be payable by
Reinsurer directly to that Company's liquidator, receiver or
statutory successor, on the basis of the liability of that Company
under the policy or policies reinsured and without diminution because
of the insolvency of the Company. However, in the event of such
insolvency, the liquidator, receiver or statutory successor will give
written notice of a pending claim against Ceding Company on the
reinsured policy. It will do so within a reasonable time after the
claim is filed in the insolvency proceedings. During the pendency of
such a claim, Reinsurer may investigate the claim and may, at its own
expense, interpose any defense or defenses which it may deem
available to the insolvent Company, its liquidator, receiver or
statutory successor, in the proceedings where the claim is to be
adjudicated.
The expense thus incurred by Reinsurer will be chargeable against the
insolvent Company, subject to court approval, as part of the expense
of liquidation to the extent of a proportionate share of the benefit
which may accrue to the insolvent Company solely as a result of the
defense undertaken by Reinsurer.
Where two or more reinsurers are involved in the same claim and a
majority in interest elect to interpose defense to the claim, the
expense
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will be apportioned in accord with the terms of the reinsurance
agreement as though the expense had been incurred by the insolvent
Company.
It is agreed that the insolvency of any one of the Hartford Life
Companies shall not affect this Agreement as it applies to the
remaining solvent companies.
ARTICLE XV
OFFSET
Any debts or credits, matured or unmatured, liquidated or unliquidated,
regardless of when they arose or were incurred, in favor of or against either
the Ceding Company or the Reinsurer with respect to this Agreement or with
respect to any other claim of one party against the other are deemed mutual
debts or credits, as the case may be, and shall be set off, and only the
balance shall be allowed or paid. In the event the Ceding Company becomes
insolvent, offsets shall be allowed in accordance with applicable law.
ARTICLE XVI
ARBITRATION
Any disagreement, controversy, or claim arising out of or relating to this
Agreement between the Reinsurer and any one of the Hartford Life Companies
will be settled by arbitration. There will be three arbitrators chosen among
current or retired officers of life insurance companies other than parties
or their affiliates. Each party to the dispute will appoint one of the
arbitrators and these two arbitrators will select the third arbitrator. In
the event that either party should fail to choose an arbitrator within 30
days following a written request by the other party to do so, the requesting
party may choose two arbitrators who shall in turn choose a third arbitrator
before entering upon arbitration. If the two arbitrators fail to agree upon
the selection of a third arbitrator within 30 days following their
appointment, each arbitrator shall nominate three candidates within 10 days
thereafter, two of whom the other shall decline, and the decision shall be
made by drawing lots.
Arbitration will be conducted in accordance with the Commercial Arbitration
Rules of the American Arbitration Association which will be in effect on the
date of delivery of demand for arbitration. The arbitrators will base their
decision on the terms and conditions of this Agreement plus, as necessary, on
the customs and practices of the insurance and reinsurance industry rather
than solely on a strict interpretation of the applicable law. The site of
any arbitration will be determined by a majority vote of the arbitrators.
All expenses and fees of the
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arbitrations will be borne equally by the parties unless otherwise decreed by
the arbitrators.
The award agreed to by a majority of the arbitrators will be final and binding
and there will be no appeal from their decision. Judgment may be entered upon
it in any court having jurisdiction.
ARTICLE XVII
TERMINATION
A. Each Hartford Life Insurance Company and the Reinsurer may
terminate this Agreement as it applies to the business of each by
giving (90) ninety days' written notice of termination. The day the
notice is deposited in the mail addressed to the Home Office, or to
an Officer of each party, will be the first day of the (90)
ninety-day period.
B. During the (90) ninety-day period, this Agreement will continue to be in
force between the terminating parties.
C. After termination, the terminating parties shall remain liable under the
terms of this Agreement for all automatic reinsurance which becomes
effective prior to termination of this Agreement. After termination
the terminating parties shall be liable for all automatic and
facultative reinsurance which has an application date on or before
the effective date of the termination.
D. Termination by one or two of the Hartford Life Companies shall not affect
this Agreement as it relates to the non-terminating Hartford Life
Company(ies).
ARTICLE XVIII
ENTIRE AGREEMENT AND AMENDMENT
A. Entire Contract
This Agreement with any attached Schedules and Exhibits, shall
constitute the entire agreement between the parties with respect to
the business being reinsured hereunder and there are no
understandings between the parties other than as expressed herein.
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B. Modifications
Any modification or change to the provisions of this Agreement shall
be null and void unless set forth in a written amendment to the
Agreement which is signed by all parties to the amendment.
ARTICLE XIX
EFFECTIVE DATE
The provisions of this Agreement shall be effective with respect to policies
issued on or after October 1, 1996.
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ARTICLE XX
EXECUTION
SWISS RE LIFE COMPANY AMERICA
By /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇ Attest /s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
------------------------------- --------------------------------
Title Vice President Title Assistant Actuary
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Date July 20, 1998 Date July 20, 1998
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HARTFORD LIFE INSURANCE COMPANY
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
ITT HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇ Attest /s/ ▇▇▇ ▇. ▇▇▇▇▇▇▇▇
------------------------------- --------------------------------
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇, FSA, CLU ▇▇▇ ▇. ▇▇▇▇▇▇▇▇, FSA, MAAA
Vice President Assistant Vice President
Individual Life Product & Marketing Individual Life Product
Development
Date July 10, 1998 Date July 10, 1998
------------------------------- --------------------------------
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SCHEDULE A
SPECIFICATIONS
TYPE OF BUSINESS Fully underwritten Last Survivor Plans
REINSURANCE POOL SHARE Reinsurer shall automatically reinsure of the
amount at risk on a policy reinsured by the Pool.
PLANS OF INSURANCE
DESCRIPTION GENERAL FORM NO'S.
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Last Survivor Interest Sensitive Whole Life HL-12710, HL-A12966, ▇▇▇-1078
Last Survivor Universal Life HL-14393, HL-A14407, ▇▇▇-1011
Last Survivor Variable Life HL-14263, ▇▇▇-1020
Last Survivor SPVL (fully underwritten) HL-LSPVL94, ▇▇▇-LSPVL97,
HL-LSPVL97, ▇▇▇-LSPVL97
RIDERS
------
Additional Insurance Benefit ▇▇▇▇▇ ▇▇-13514, HL-A13504, ▇▇▇-1079
Four Year Term ▇▇▇▇▇ ▇▇-12933, HL-A12989, ▇▇▇-1080
Increasing ▇▇▇▇ ▇▇▇▇▇ ▇▇-▇▇▇▇▇, ▇▇-▇▇▇▇▇▇, ▇▇▇-▇▇▇▇
▇▇▇▇▇▇ Protection ▇▇▇▇▇ ▇▇-14627, ▇▇▇-1023
Six Month Exchange ▇▇▇▇▇ ▇▇-12936, ▇▇▇-1083
Twenty-four Month Exchange ▇▇▇▇▇ ▇▇-12963, ▇▇▇-1013
Alternative Requisite Premium Option ▇▇▇▇▇ ▇▇-14201
Maturity Extension ▇▇▇▇▇ ▇▇-14637, ▇▇▇-1024
Single Life YRT Life Insurance ▇▇▇▇▇ ▇▇-14626, ▇▇▇-1021
First Death Term Life ▇▇▇▇▇ ▇▇-12932
MINIMUM REINSURANCE $50,000 Upon reaching the retention limit
Cession set forth in Exhibit II,
Ceding Company will automatically
cede the excess insurance only if
the total amount to be ceded to
the Pool is $50,000 or more.
LEAD REINSURER Lincoln National Plans of Insurance and Riders
Life produced through ELAR.
Security Life Plans of Insurance and Riders
of Denver produced through All Other
Producers.
SCHEDULE B
BASIS OF REINSURANCE
LIFE PRODUCTS Life reinsurance will be on the yearly renewable term (YRT)
basis for the amount at risk on the portion of the policy
reinsured by Reinsurer. The amount at risk on a policy
shall be the death benefit of the policy less the amount
retained by the Ceding Company, less the cash value under
the policy. The basis for determining Reinsurer's
liability shall be the amount at risk used for computation
of the reinsurance premium.
EXCHANGES Exchanges from one last survivor plan reinsured under this
agreement to a different last survivor plan, for the
purpose of allowing the policyowner premium flexibility
(UL) or potentially higher investment return (VL), will be
reinsured hereunder as NEW BUSINESS at first year
reinsurance rates if the new plan has been fully
underwritten and has new contestable and suicide exclusion
periods. Otherwise, the reinsurance rates will be
point-in-scale.
RESERVE BASIS Reserves are calculated according to the applicable CRVM
methodology, interest rate and mortality table. The
mortality tables used are male/female, smoker distinct, age
last birthday and ultimate. The mortality rates are
frasierized. There is a 1/2 qx unearned premium reserve
minimum.
