AUTOMATIC
REINSURANCE AGREEMENT
between
NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION,
of New York, New York
(hereinafter, "you" and your")
and
(hereinafter, "we", "us" and "our")
EFFECTIVE SEPTEMBER 28, 1999
[SPECIMEN]
TABLE OF CONTENTS
ARTICLES PAGE
-------- ----
I Reinsurance Coverage 3
II Requirements for Automatic Reinsurance 3
III Requirements for Facultative Reinsurance 4
IV Liability 4
V Notification of Reinsurance 5
VI Plans Of Reinsurance 5
VII Reinsurance Premiums 5
VIII Reinsurance Accounting 5
IX Oversights 6
X Reductions, Terminations And Changes 7
XI Increase In Retention 8
XII Reinstatement 9
XIII Expenses 9
XIV Claims 9
XV Premium Tax Xxxxxxxxxxxxx 00
XXX XXX Tax Requirements 11
XVII Inspection Of Records 12
XVIII Insolvency 12
XIX Arbitration 12
XX Parties To Agreement 13
XXI Entire Agreement 13
XXII Duration Of Agreement 14
XXIII Choice of Law and Forum 14
XXIV Compliance with Law 14
SCHEDULES
A Policies
B Reinsurance Premium Rates
EXHIBITS
1 Reinsurance Questionnaire
2 DAC Tax Calculation
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ALL SCHEDULES AND EXHIBITS ATTACHED WILL BE CONSIDERED PART OF THIS AGREEMENT.
ARTICLE I
REINSURANCE COVERAGE
1. Reinsurance under this Agreement shall be individual life insurance of the
type of business stated in Schedule A. You must automatically reinsure and
we must automatically accept the life insurance for the plans and riders as
stated in Schedule A that meet the requirements of Article II below. Our
liability for the risks ceded hereunder shall be based on the quota share
specified in Schedule A unless a greater amount is reinsured pursuant to
Article III. (Individual life insurance reinsured pursuant to Article I and
II or Article III hereinafter referred to as a "Covered Policy(ies)")
2. The effective date of this Agreement shall be September 28, 1999.
ARTICLE II
REQUIREMENTS FOR AUTOMATIC REINSURANCE
You shall not cede, and we shall not accept, any individual life insurance for
reinsurance under this Agreement unless it meets the following requirements:
1. The individual risk must be a resident of the United States, Canada or
Mexico.
2. The individual risk must be underwritten by you in accordance with your
usual underwriting practices and guidelines. The individual risk must be
classified as substandard special class A or B (as set forth in Schedule A)
in accordance with those guidelines.
3. The age of the individual risk at issue must be no greater than the maximum
issue age shown on Schedule A
4. The maximum amount of insurance issued and applied for in all insurance
companies on each life must not exceed the jumbo limits shown on Schedule A.
5. The maximum amounts of insurance to be reinsured on an individual life must
not exceed the automatic binding limits shown on Schedule A.
6. The initial minimum amount of life insurance on each policy must not be less
than the minimum amount at issue as shown on Schedule A.
7. The issuance of the insurance must constitute the doing of business in a
jurisdiction in which you are properly licensed.
8. On each individual life, you must retain __% of the amount of each risk.
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ARTICLE III
REQUIREMENTS FOR FACULTATIVE REINSURANCE
1. If the requirements for automatic reinsurance on an individual life are
not met, or are met but you prefer to apply for facultative reinsurance,
then you may apply to us for facultative reinsurance. In order to apply for
facultative reinsurance, you must submit to us complete copies of the
original application, medical examiner's reports, inspection reports,
attending physicians' statements plus any other papers or information that
may have a bearing on the insurability of the risk.
2. After we have examined the underwriting information submitted in accordance
with Paragraph 1 above, we shall promptly notify you in writing of either a
final underwriting offer for facultative reinsurance or an offer for
facultative reinsurance subject to additional requirements. Either offer of
facultative reinsurance on an individual life will automatically terminate
on the first of the following dates:
(a) The date we receives notice from you that you have withdrawn your
application for facultative reinsurance;
(b) A date that is one hundred twenty (120) days after the date we made
the offer; or
(c) The date specified in our offer.
3. If an underwriting offer made by us in accordance with Paragraph 2 is
accepted by you prior to the date the offer terminates, that individual life
is reinsured under the terms of this Agreement.
ARTICLE IV
LIABILITY
1. Our liability for automatic reinsurance on each Covered Policy will begin
simultaneously with your liability.
2. Our liability for facultative reinsurance on each Covered Policy will begin
simultaneously with your liability once we have accepted the application for
facultative reinsurance in writing and you have accepted our offer.
3. Our liability for reinsurance on each Covered Policy will terminate when
your liability terminates.
4. The initial and subsequent Reinsurance Premiums (as defined herein) must be
received by us on a timely basis as provided in Article VIII for us to
maintain our liability for each individual risk.
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5. We agree to accept policies backdated to march 28, 1999 for reinsurance
coverage under this Agreement. However, it is agreed that we shall not be
liable for any mortality risk on such policies until September 28, 1999.
6. We will not be liable for proceeds paid under your conditional receipt or
temporary insurance agreement for risks submitted on a facultative basis.
ARTICLE V
NOTIFICATION OF REINSURANCE
Within thirty-one (31) days after the end of each calendar quarter, you will
send us an in force listing of all Covered Policies reinsured under this
Agreement
ARTICLE VI
PLANS OF REINSURANCE
1. Automatic reinsurance under this Agreement shall be on a yearly renewable
term basis, based on the net amount at risk. The net amount at risk shall be
the detail benefit under the Covered Policy less the cash value.
2. When requested, you shall furnish us with a copy of each policy, rider and
rate book which applies to the life insurance reinsured.
ARTICLE VII
REINSURANCE PREMIUMS
1. The premium for each Covered Policy reinsured pursuant to this Agreement
will be: (a) the quota share shown on Schedule A; multiplied by (b) the
reinsurance premium rate calculated in accordance with Schedule B applied to
the net amount at risk (hereinafter, the "Reinsurance Premium").
2. For technical reasons relating to the uncertain status of deficiency reserve
requirements, the reinsurance premium rates shown in Schedule B cannot be
guaranteed for more than one year. However, we anticipate continuing to
accept premiums on the basis of the reinsurance premium rates as described
in Schedule B for reinsurance ceded. If we deem it necessary to increase
reinsurance premium rates, such increased rates shall not be higher than the
valuation net premiums for yearly renewable term insurance calculated using
the minimum statutory mortality rates and maximum statutory interest rate
for each year of issue.
ARTICLE VIII
REINSURANCE ACCOUNTING
1. PAYMENT OF REINSURANCE PREMIUMS
A. You shall prepare and submit to us by regular U.S. postal service a
monthly statement, which will provide the pertinent policy premium
details on a mutually agreed upon report format, within thirty (30) days
following the last day of the same calendar month. The
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net monthly premiums due will be the balance of the monthly Reinsurance
Premiums due on reinsurance in force at the end of the immediately
preceding calendar month plus Reinsurance Premiums due on new business
reinsured during the current month less the refunds of Reinsurance
Premiums due you on deaths, lapses and changes.
B. If the monthly statement shows a net Reinsurance Premium balance is
payable to us, you shall remit this amount due us within thirty (30)
days. If the amount is not paid within the prescribed period, the
premiums for all of the reinsurance risks listed on the statement will
be delinquent.
C. If the monthly statement shows a net Reinsurance Premium balance is
payable to you, we shall remit our payment to you within thirty (30) days
after receiving your statement.
2. TERMINATION BECAUSE OF NON-PAYMENT OF PREMIUMS
When Reinsurance Premiums are delinquent, we have the right to terminate the
reinsurance risks on the statement by giving you thirty (30) day's written
notice. AS of the close of this thirty (30) day period all of our liability
will terminate for:
A. The risks described in the preceding sentence, and
B. The risks where the Reinsurance Premiums became delinquent during the
thirty (30) period.
Regardless of these terminations, you will continue to be liable to us for
all unpaid Reinsurance Premiums earned by us. You agree that you will not
force termination under this provision solely to avoid the recapture
requirements or to transfer the block of business reinsured to another
reinsurer.
3. REINSTATEMENT OF A DELINQUENT STATEMENT.
You may reinstate the terminated risks within sixty (60) days after the
effective date termination by paying the unpaid Reinsurance Premiums for the
risks in force prior to the termination. However, we will not be liable for
any claim incurred between the date of termination and reinstatement. The
effective date of reinstatement will be the day we receive the required back
Reinsurance Premiums.
4. CURRENCY.
The Reinsurance Premiums and claims payable under this Agreement will be
payable in the lawful money of the United States.
5. OFFSET
Any amounts due from either of the parties to this Agreement under this
Agreement may be offset against the claims of the other party under this
Agreement or any other agreement
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between the parties. This right will continue to exist after the termination
of this Agreement, or of any business relationship between the parties.
6. BALANCES IN DEFAULT
We reserve the right to charge interest at the Prime Rate plus 2% as stated
in the Wall Street Journal on the first business day in January prior to the
due date of the premium when renewal premiums are not paid within sixty (60)
days of the due date or premiums for new business are not paid within one
hundred twenty (120) days of the date the policy is issued.
ARTICLE IX
OVERSIGHTS
If there is an unintentional oversight or misunderstanding in the administration
of this Agreement by either company, it can be corrected provided the correction
takes place promptly after the time the oversight or misunderstanding is first
discovered. Both companies will be restored to the position they would have
occupied had the oversight or misunderstanding not occurred.
ARTICLE X
REDUCTIONS, TERMINATIONS AND CHANGES
1. If there is a contractual or non-contractual replacement or change in the
insurance reinsured under this Agreement where full underwriting evidence
according to your regular underwriting rules is not required, the insurance
will continue to be reinsured with us.
2. If the insurance reinsured under this Agreement increases and
A. The increase is subject to new underwriting evidence, the provisions
of Article I and II or Article III shall apply to the increase in
reinsurance.
B. The increase is not subject to new underwriting evidence, we will accept
automatically the increase in reinsurance but not to exceed our automatic
binding limit.
3. If the insurance reinsured under this Agreement is increased or reduced, the
reinsurance for each policy involved will be proportionately increased or
reduced on the effective date increase or reduction.
4. If any portion of the total insurance retained by you on an individual life
reduces or terminates, any reinsurance under this Agreement based on the
same life will also be reduced or terminated. You will reduce your
reinsurance by applying the retention limits which were in effect at the
time the policy was issued. You will not be required to retain an amount in
excess of your 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.
You must first reduce the reinsurance of the insurance which has the same
mortality rating as the terminated insurance. If further reduction is
required, the reinsurance to be
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terminated or reduced will be determined by chronological order in which the
reinsurance was first reinsured.
5. If the insurance for a risk is shared by more than one reinsurer, our
percentage of the increased or reduced reinsurance will be the same as our
percentage of the initial reinsurance of each policy.
6. If insurance reinsured under this Agreement is terminated, the reinsurance
for the policy involved will be terminated on the effective date of
termination.
7. On facultative reinsurance, if you wish to reduce the mortality rating, this
reduction will be subject to the facultative provisions of this Agreement.
8. We will refund to you all unearned reinsurance premiums, arising from
reductions, terminations and changes as described in this Article.
ARTICLE XI
INCREASE IN RETENTION
1. If you should increase your retention limits, you shall give us prompt
written notice of this increase.
2. You will have the option to recapture all or any part of the reinsurance
under this Agreement When your retention limit increases. You may exercise
your option to recapture by giving us ninety (90) days prior written notice
of such recapture.
3. If you exercise this option to recapture, then
A. You must reduce the reinsurance on each individual life on which you
retained __% of your maximum retention limit for the age and mortality
rating that was in effect at the time the reinsurance was ceded to us.
B. No recapture will be made to reinsurance on an individual life if you did
not retain insurance on the life.
C. You must increase your total amount of insurance on the individual life
up to your new retention limit by reducing the total reinsurance on that
life by the same amount. If an individual life is shared by more than one
reinsurer, our percentage of the reduced reinsurance will be the same
percentage as our initial reinsurance on the individual risk.
D. The reduction of reinsurance will become effective on the later of the
following dates;
(1) The policy anniversary date immediately following the effective date
of your increase in retention limits.
(2) The number of years stated in Schedule A starting with the original
policy date shown on your listing.
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ARTICLE XII
REINSTATEMENT
If a Covered Policy lapses for nonpayment of premium and is reinstated under
your terms and rules, the reinsurance will be reinstated by us. You must pay us
all back Reinsurance Premiums in the same manner as you received insurance
premiums under your policy. If we are requested to reinstate a policy that was
Originally ceded to us on a facultative basis, then you must submit the policy
and associated papers concerning the individual's insurability to us to be
underwritten and approved for the reinsurance to be reinstated if:
1. the policy lapsed for six months or longer, or
2. you seek additional underwriting information, or
3. you reinsure 100% of the policy.
If the above conditions are not present, you may automatically reinstate a
policy that was originally ceded to us on a facultative basis.
ARTICLE XIII
EXPENSES
You must pay the expense of all medical examinations, inspection fees and other
underwriting expenses in connection with the issuance of the insurance.
ARTICLE XIV
CLAIMS
1. We shall pay our quota share of any claim under a Covered Policy within a
reasonable time after you submit the claim to us. We shall make payment to
you in a single sum regardless of your mode of settlement.
2. All reinsurance claim settlements made in accordance with Paragraph 1 above
will be subject to the terms and conditions of the particular policy under
which you are liable.
3. When you are advised of a claim for insurance benefits reinsured under this
Agreement, you must promptly notify us.
4. If a claim is made under insurance reinsured under this Agreement, we will
abide by the issue as it is settled by you. The maximum benefit payable to
you under each Covered Policy is the amount specifically reinsured with us.
When you request payment of the reinsurance proceeds, you must deliver a
copy of the proof of death, proof of payment and the claimant's statement to
us.
5. A. You must promptly notify us of your intent to contest insurance reinsured
under this Agreement or to assert defenses to a claim for such insurance.
We shall participate in the contest or assertion of defenses unless we
notify you promptly that we decline to
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participate. If your contest of such insurance results in the reduction
of your liability, we will share in this reduction. Our percentage of the
reduction will be our net amount of risk on the individual life as it
relates to your total net amount at risk on the date of the death of the
insured.
B. If we should decline to participate in the contest or assertion of
defenses, or if we disagree with your decision to deny a claim, we will
then release all of our liability by paying you the full amount of
reinsurance as if there had been no contest, compromise or litigation of
a claim, and our proportionate share of covered expenses incurred to the
date, from the date we notify you that we declined to be a party and by
not sharing in any subsequent reduction in liability.
6. If the amount of insurance provided by the policy or policies reinsured
under this Agreement is increased or reduced because of a misstatement of
age or sex established after the death of the insured, we will share with
you in this increase or reduction. Our share of this increase or reduction
will be the percentage that our net liability relates to your total net
liability, immediately prior to this increase of reduction. Any adjustment
in Reinsurance Premiums will be made without interest.
7. You must pay the routine expenses incurred in connection with settling
claims. These expenses may include compensation of agents and employees and
the cost of routine investigations.
8. We will share with you 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 insurance or the assertion of defenses.
These expenses will be shared in proportion to the net sum at risk for both
of us. However, if we have released our liability under Paragraph 5 of this
Article, we will not share in any expenses incurred after our date of
release.
9. Notwithstanding anything contained in this Article to the contrary, we will
pay our proportionate share of a judgment which includes extra-contractual
damages awarded against you in a lawsuit arising out of a contested claim in
which we have elected to be a party pursuant to .Paragraphs 5 and 8 of this
Article. The extent of our liability for extra-contractual damages,
however, exclude those damages assessed against you as a result of acts,
omissions or course of conduct committed by you and/or your agents, other
than those that arise out of the investigation, processing and settlement of
claims in connection with insurance reinsured under this agreement. It is
recognized that there may be special circumstances involved which indicate
that the extent of such sharing of liability between you and us is dependent
upon the good faith assessment of culpability in each case, but all factors
being equal, the parties will share in such extra-contractual damages in the
same proportion as the quota share accepted by each party under the
Agreement
10. If either a misrepresentation or misstatement on an application or a death
of an insured by suicide results in you returning the policy premiums to the
policy owner rather than paying the policy benefits, we will refund all of
the Reinsurance Premiums we received on that policy to you. This refund
given by us will be in lieu of all other reinsurance benefits payable on
that policy under this Agreement. If there is an adjustment to the policy
benefits due to a
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misrepresentation or misstatement of age or sex, a corresponding adjustment
will be made to the reinsurance benefits.
ARTICLE XV
PREMIUM TAX REIMBURSEMENT
We shall not reimburse you for any taxes you may be required to pay with respect
to reinsurance hereunder.
ARTICLE XVI
DAC TAX REQUIREMENTS
The companies agree to the following provisions pursuant to Section 1.848-2(g)
(8) of the Income Tax Regulations adopted December 28, 1992, under Section 848
of the Internal Revenue Code of 1986 (the "IRC"), as amended. This election
shall be effective for calendar year 1999 and for all subsequent taxable years
for which this Agreement remains in effect.
1. The term "party" refers to either you or us, as appropriate.
2. The terms used in this Article are defined by reference to Regulation
Section 1.845-2, adopted December 28, 1992.
3. Any 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 Section 848(c)(1) of the IRC.
4. 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.
5. You Will submit a schedule in the format specified in Exhibit 2 to us by May
1st of each year of your calculation of the net consideration for the
preceding calendar year. This schedule of calculations will be accompanied
by a statement signed by an officer stating that you will report such net
consideration in your tax return for the preceding calendar year. We may
contest such calculation by providing an alternative calculation to you in
writing within thirty days of our receipt of your calculation. If we do not
so notify you within the required time frame, we will report the net
consideration as determined by you in our tax return for the previous
calendar year.
6. If we contest your calculation of the net consideration, the parties will
act in good faith to reach an agreement as to the correct amount within
thirty (30) days of the date we submit our alternative calculation. If the
parties reach an agreement on an amount of net consideration, each party
will report the agreed upon amount in its tax return for the previous
calendar year.
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7. We represent and warrant that we are subject to United States taxation under
either Subchapter L or Subpart F of Part III of Subchapter N of the Internal
Revenue Code of 1986, as amended.
8. We shall complete a Reinsurance Questionnaire in the format specified in
Exhibit 1 and submit it to you by May 1st of each year.
ARTICLE XVII
INSPECTION OF RECORDS
We will have the right, at any reasonable time, to inspect your books and
documents which relate to your reinsurance under this Agreement.
ARTICLE XVIII
INSOLVENCY
1. If you become insolvent, all of the reinsurance due you will be paid in full
directly to you or your liquidator (receiver or statutory successor) on the
basis of your liability under the policy or policies reinsured, without
diminution because of your insolvency.
2. If you become insolvent, the liquidator, receiver or statutory successor will
give us written notice of a pending claim against you for insurance reinsured
under this Agreement within a reasonable time after the claim is filed in the
insolvency proceeding. During the insolvency proceedings where the claim is
to be settled, we may investigate this pending claim and interpose in your or
your liquidator's, receiver's or statutory successor's name, but at our own
expense, any defense or defenses which we may believe available to you or
your liquidator, receiver or statutory successor.
3. The expenses incurred by us will be chargeable, subject to court approval,
against you as part of the expense of liquidation, to the extent of the
proportionate share of the benefit which may accrue to you solely as a result
of the defense undertaken by us. Where two or more reinsurers are involved in
the same claim and a majority in interest elects to interpose a defense or
defenses to this claim, the expense will be apportioned in accordance with
the terms of this Agreement as though such expense had been incurred by you.
4. In the event of our insolvency, as determined by the department of insurance
responsible for such determination, all reinsurance ceded under this
Agreement may be recaptured immediately by you without penalty effective as
of the day prior to the earlier of our becoming insolvent or the date of such
determination by the said department of insurance.
5. Where two or more reinsurers are members of a pool of reinsurers established
hereby, the insolvency of one reinsurer shall not be deemed to abrogate this
Agreement with respect to the other reinsurers.
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ARTICLE XIX
ARBITRATION
1. The parties agree to act in all things with the highest good faith. However,
if the parties cannot mutually resolve a dispute or claim, which arises out
of, or in connection with this Agreement, including formation and validity,
and whether arising during, or after the period of this Agreement, the
dispute or claim shall be settled by arbitration. The arbitrators shall have
the authority to interpret this Agreement and in doing so shall consider the
customs and practices of the life insurance and life reinsurance industries.
To initiate arbitration, either party shall notify the other party by
certified mail of its desire to arbitrate, stating the nature of the dispute
and the remedy sought. The party to which the notice is sent shall respond to
the notification in writing within ten (10) days of receipt.
2. There must be three arbitrators who shall be current or past officers of life
insurance companies other than the contracting companies or their
subsidiaries or affiliates. Each of the contracting companies will appoint
one of the arbitrators and these two arbitrators will select the third.
In the event either contracting company is unable to choose an arbitrator
within thirty (30) days after the other contracting company has given written
notice of its arbitrator appointment, the contracting company which has given
written notice may choose two arbitrators who shall in turn choose a third
arbitrator before entering arbitration. If the two arbitrators are unable to
agree upon the selection of a third arbitrator within thirty (30) days
following their appointment, each arbitrator shall nominate three candidates
within ten (10) days thereafter, two of whom the other shall decline and the
decision shall be made by drawing lots.
3. With regard to Paragraph 2 above, arbitration must 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.
4. Each party will pay the fees of its own attorneys, the arbitrator appointed
by that party, and all other expenses connected with the presentation of its
own case. The two parties will share equally in the cost of the third
arbitrator. The arbitration hearing will be held in New York City.
5. The award agreed by the arbitrators will be final, and judgment may be
entered upon it in any court having Jurisdiction. The arbitrators cannot
award punitive damages.
ARTICLE XX
PARTIES TO AGREEMENT
This is an Agreement solely between you and us. There will be no legal
relationship between us and any person having an interest of any kind in any of
your insurance.
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ARTICLE XXI
ENTIRE AGREEMENT
1. This Agreement shall constitute the entire agreement between the parties with
respect to the insurance policies or contracts reinsured and there are no
understandings between the parties other than as expressed in this Agreement.
2. Any change or modification to this Agreement shall be null and void unless
made by amendment to this Agreement and signed by both parties.
ARTICLE XXII
DURATION OF AGREEMENT
1. This Agreement may be terminated as to new business, with respect to the
percentage participation in the risks reinsured hereunder by us, as set forth
in Schedule A, at any time by either company giving ninety (90) days' written
notice of termination. The day the notice is deposited in the mail addressed
to the home office or to an officer of either company will be the first day
of the ninety (90) day period.
2. During the ninety (90) day period, you will continue to submit cases and we
will continue to accept them. Our acceptance will be subject to the terms of
this Agreement and your payment of Reinsurance Premiums.
3. After termination, we will both be liable for all automatic reinsurance which
becomes effective prior to termination of this Agreement and also for all
facultative reinsurance approved by us based upon applications we received
prior to termination of this Agreement.
4. Additionally, this Agreement may be terminated immediately for the acceptance
of new reinsurance by either party if the parties materially breach this
Agreement or become insolvent or financially impaired.
ARTICLE XXIII
CHOICE OF LAW AND FORUM
New York law shall govern the terms and conditions of the Agreement. In the case
of an arbitration, the arbitration hearing shall take place in New York, New
York, and New York law shall control.
ARTICLE XXIV
COMPLIANCE WITH LAW
When we receive information from you which is subject to any state or Federal
privacy laws or regulations, or similar laws or regulations, we will keep such
information confidential to the extent required by such state or Federal law or
regulation and otherwise comply with such state or Federal law or regulation.
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IN WITNESS WHEREOF the said
NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION
and the
have by their respective officers executed and delivered these presents in
duplicate on the date shown below.
NEW YORK LIFE INSURANCE NEW YORK LIFE INSURANCE
AND ANNUITY CORPORATION AND ANNUITY CORPORATION
Signed at NEW YORK , NY Signed at NEW YORK , NY
By: /s/ Xxxxxx X. Xxxxx By: /s/ Xxxxx X. Xxxxxx
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Its authorized representative Its authorized representative
Title Corporate VP & Actuary Title VP & Actuary
Date 12/7/99 Date 12/7/99
Signed at Signed at
By: By:
------------------------------ -----------------------------
Its authorized representative
Title Title
Date 12-27-99 Date 12-27-99
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SCHEDULE A
POLICIES
1. Quota Share Percentage: The Quota Share Percentage for Covered Policies
shall be __% of the Risk.
Type of Business: Universal Life Insurance and Variable Universal
Life Insurance, plus Supplementary Term
Insurance Rider and Other Covered Insured Rider
attached to the base policy, issued by you.
3. Plans of Insurance: A.D. 99 Accumulator and A.D. 99 Protector
Universal Life Insurance Policies (plus
Supplementary Term Insurance Rider and Other
Covered Insured Rider attached to the base
policy); VUL 2000 Variable Universal Life
Insurance Policies (plus Supplementary Term
Insurance Rider and Other Covered Insured Rider
attached to the base policy).
The foregoing plans reinsured under the
Agreement include only individuals classified as
substandard special classes A and B. Substandard
special classes A and B include: (a) individuals
classified as non-smoker special class A or
special class B or individuals classified as
standard non-smoker with either a $4.10 or $5.85
temporary flat medical extra; and (b)
individuals classified as smoker special class A
or special class B or individuals classified as
standard smoker with either a $4.10 or $5.85
temporary flat medical extra.
4. Maximum Issue Age: 80
5. Jumbo Limit: $__________
6. Automatic Binding Limit: $__________
7. Minimum Amount at Issue: $__________
8. Recapture Period: 10 Years
SCHEDULE B
REINSURANCE PREMIUM RATES
EXHIBIT 1
REINSURANCE QUESTIONNAIRE
FOR FEDERAL DAC TAX DETERMINATIONS
The purpose of this questionnaire is to secure sufficient information to allow
New York Life Insurance and Annuity Corporation to account properly under the
federal income tax rules for the reinsurance transactions we have with you.
Please provide us with the following information:
1. Are you either
(a) a company that is subject to U.S. taxation directly under the
provisions of subchapter L of chapter 1 of the Internal Revenue
Code (i.e., an insurance company liable for filing Form 1120L, or
Form 1120-PC), or
(b) a company that is subject indirectly to U.S. taxation under the
provisions of subpart F of subchapter N of chapter 1 of the
Internal Revenue Code (i.e., a "controlled foreign corporation"
with the meaning of Internal Revenue Code Section 957)?
Answer: _____ Yes _____ No
2. If your answer to 1. is no, have you entered into a closing agreement
with the Internal Revenue Service to be subject to U.S. taxation with
respect to reinsurance income pursuant to Treasury Regulation Section
1.848-2(h)(2)(ii)(B)?
Answer: _____ Yes _____ No
(If your answer is yes, please provide a copy of the closing
agreement)
Company Name: _____________________
Signed by: _____________________
Title: _____________________
Date: _____________________
EXHIBIT 2
CEDING COMPANY: NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION
ASSUMING COMPANY: ________________________
DATE: ________________
DAC TAX - DEDUCTIONS FROM GROSS PREMIUM
DAC TAX CALCULATION AMOUNTS
GROSS PREMIUM
LESS:
DEDUCTIONS FROM GROSS PREMIUMS
Commissions
Death Claims
Claim Interest
Premium Taxes
Claim Investigation Expense
Claim Legal Expense
Waiver Claims
Surrenders
Experience Refunds
Admin Fee
Fee Income
Miscellaneous Interest
Dividends
Termination Dividends
Production Bonus
Reserve Adjustments
Other (specify)
TOTAL DEDUCTIONS
NET CONSIDERATIONS
Please sign below confirming agreement with net considerations
or provide an alternate calculation within 30 days
________________________________
Signature
________________________________
Type or Print Name of Signee
________________________________
Title
________________________________
Date
