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EXHIBIT 10.5
Automatic Variable Annuity Reinsurance Agreement
(Referred to as the Agreement)
Between
WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO
of Largo, Florida
(referred to as the Reinsured)
and
WMA LIFE INSURANCE COMPANY LIMITED
of Xxxxxxxx, Bermuda
(referred to as the Reinsurer)
Effective January l, 1998
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CONTENTS
ARTICLE DESCRIPTION PAGE
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I Automatic Reinsurance 3
II Definitions 3
III Liability 5
IV Reductions and Terminations 5
V Premiums 5
VI Payments by Reinsurer 6
VII Reporting 6
VIII Policy Changes 7
IX Annuitization 7
X Deposits of the Modified Coinsurance Reserve 7
XI Interest Credit on Modified Coinsurance Reserve and
Modified Coinsurance Reserve Adjustment 7
XII Reinsurance Reserves 8
XIII General Provisions 9
XIV Recapture 14
XV Arbitration 14
XVI Improper Solicitation of Annuity Contract Owners 15
XVII DAC Tax - Section 1.848-2(g)(8)Election 15
XVIII Duration of Agreement 16
XIX Written Notice 17
XX Execution 18
EXHIBITS DESCRIPTION PAGE
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A Form of Letter of Credit 19
B Investment Policy and Crediting Rate Strategy 20
SCHEDULE DESCRIPTION
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A Business Reinsured
Bl Amount of Reinsurance
B2 Commission And Expense Allowances
C1 Quarterly Settlement Report
X0 Xxxxxxxxx Xxxxxxx Xxx Xxxxxxxxxx Xxxxxx
Xx Monthly Reports
D2 Quarterly Reports Commission and Expense Allowances
E1 Monthly Reports-Monthly Production and Policy Loans Report
E2 Quarterly Reports-Quarterly Production and Policy Loans Report
E3 Quarterly Reports-Quarterly Reserve Report
F Annual Report
G Quarterly Reports-Quarterly Interest Credit (Debit)
on Modified
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Coinsurance Reserve
H Quarterly Reports-Quarterly Modified Coinsurance Reserve
Adjustment
I Quarterly Reports-Quarterly Target Surplus Adjustment
J Monthly Report-Monthly M&E Asset Based Allowance
Calculations
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This Agreement is entered into by the Reinsured and the Reinsurer on the
execution date. The Reinsured and the Reinsurer mutually agree to reinsure on
the terms and conditions set out below.
I. AUTOMATIC REINSURANCE
1. Insurance. The Reinsured will cede on an automatic basis and
the Reinsurer will accept as reinsurance the annuity contracts
(policies) written by the Reinsured as shown in Schedule A.
2. Coverages. The annuity contracts Reinsured as shown in
Schedule A, are the Flexible Payment Variable Accumulation
Deferred Annuity contracts and any riders or endorsements
attached thereto, with an issue date after December 31, 1997.
Reinsurance will be limited in percentage as provided in
Schedule B1. Only plans sold by a Producer registered with an
affiliated broker-dealer identified in Exhibit A shall be
reinsured under this Agreement.
3. The Separate Account Annuity Value will be reinsured on a
modified coinsurance basis.
4. The Fixed Account will be reinsured on a coinsurance basis.
5. In no event shall reinsurance under this Agreement be in force
with respect to an annuity contract unless the issuance and
delivery of the annuity contract is in compliance with the
laws of all applicable jurisdictions and the Reinsured's
corporate charter.
6. The Reinsured declares and agrees that all annuity contracts
and benefits covered under this Agreement shall be issued in
accordance with its normal practices in effect when the
annuity contract is issued. These practices will be provided
to the Reinsurer on request. The Reinsured will also notify
the Reinsurer of any material changes made to these practices
before applying them to annuity contracts and benefits covered
by this Agreement.
II. DEFINITIONS
"ANNUITY VALUE" has the same meaning as set forth in the
Reinsured Plan.
"ARTICLE" OR "PARAGRAPH" refers to an Article or Paragraph of
this Agreement.
"EFFECTIVE DATE", with respect to Reinsured Plans, means the
date shown in Schedule A on which reinsurance under this
Agreement becomes effective. The Reinsured is liable for
Reinsurance Premiums, less applicable Reinsurance Allowances,
due on or after the Effective Date of a Reinsured Plan; and
the Reinsurer is liable for any reinsured benefits occurring
on or after the Effective Date.
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"EXECUTION DATE" means the date as of which this Agreement has
been executed, as shown in ARTICLE XX, EXECUTION.
"EXHIBIT" and "SCHEDULE" mean, respectively, an exhibit or
schedule attached to this Agreement and shall be considered
part of this Agreement.
"FIXED ACCOUNT" means allocation option(s) other than the
Separate Account.
"FIXED ACCOUNT VALUE" means the value of the Fixed Account on
any valuation date.
"GENERAL ACCOUNT STATUTORY RESERVES AND LIABILITIES" OR "GA
STATUTORY RESERVES AND LIABILITIES" refers to statutory
reserves and liabilities associated with the Fixed Account as
held by the Reinsured for the reinsured contracts.
"PARTY" or "PARTY" refers to either the Reinsured or the
Reinsurer as appropriate, and PARTIES refer to both,
collectively.
"PAYMENT" means initial premium payment and all subsequent
purchase payments as defined in the contract.
"PRODUCER" means a licensed representative registered with a
broker-dealer identified in Exhibit A.
"REINSURED PLAN" means any annuity contract or rider form
reinsured under this Agreement, as set forth in Schedule A.
"SERIES FUND" means a designated mutual fund from which each
sub-account of the Separate Account will buy shares.
"SEPARATE ACCOUNT" means a separate investment account shown
on the policy schedule page, which is composed of several
sub-accounts established to receive and invest net premiums
under the policy.
"SETTLEMENT INTEREST RATE" means the interest rate for ninety
(90) day dealer commercial paper as published in The Wall
Street Journal or a successor or substitute publication, as
agreed upon by both parties if The Wall Street Journal should
cease to exist. The Settlement Interest Rate for a given month
will be the Settlement Interest Rate published on the
fifteenth (15th) of the month or the next following business
day if the fifteenth (15th) of the month is not a publication
date of The Wall Street Journal.
"SUB-ACCOUNT" means a subdivision of the Separate Account.
Each Sub-account invests exclusively in the shares of a
specified Series Fund portfolio.
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III. LIABILITY
1. The liability of the Reinsurer on any reinsurance under this
Agreement begins upon the effective date of this Agreement as
set forth in Article XX, Execution, and ends after all annuity
contracts reinsured have been terminated, annuitized or
recaptured, as set forth in Article XIV, Recapture.
2. The liability of the Reinsurer to the Reinsured under this
Agreement will be coexisting with the liability of the
Reinsured under the annuity contracts reinsured and may exceed
the Reinsured's contractual liability under the terms of the
annuity contracts as described in Paragraph 3, Article XIII,
General Provisions.
3. On an ongoing basis the liability of the Reinsurer,
reinsurance premiums, benefits and other items due to or from
each party shall be accounted for and settled and paid
quarterly on the basis of the quarterly reports prepared by
the Reinsured in the form of Schedules C1 and C2 and sent to
Reinsurer via facsimile transmission or such other medium
mutually acceptable to both parties. Also included will be any
adjustments made necessary by changes in reinsurance effective
during the previous quarter, or changes due to any agreed upon
errors on a previous report. Payment of any amount due to be
paid by the Reinsurer or the Reinsured shall be determined on
a net basis and shall be paid, in United States currency,
within two (2) weeks after receipt by Reinsurer of the
quarterly report.
4. The settlement, as shown in Schedule Cl and C2 will include
interest on payments received, net transfers, mortality and
expense charges, and asset based allowances as shown in
Schedule E1, and interest on commission and expense
allowances, and interest on benefits from the Fixed Account,
as shown in Schedule D1 accruing from the fifteenth (15th) of
every month to the settlement date. The interest rate will be
the Settlement Interest Rate of the month named on the
Schedules D1 and El. Interest will be earned from the
fifteenth (15th) of the month named on Schedules D1 and E1 to
the next following settlement date.
IV. REDUCTIONS AND TERMINATIONS
1. If any of the annuity contracts reinsured under this Agreement
are reduced or terminated by payment of a death benefit,
withdrawal, surrender or annuitization, the reinsurance will
be reduced proportionately.
V. PREMIUMS
1. The premium to be paid to the Reinsurer by the Reinsured with
respect to each annuity contract reinsured, as specified in
Schedule A, will be the quota share percentage, as specified
in Schedule B1 of:
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(i) The total amount "Due WMA", as shown in Schedule C1,
and
(ii) The total amount "Due WMA" as shown in Schedule C2.
VI. PAYMENTS BY REINSURER
1. The Reinsurer shall pay to the Reinsured the Reinsurer's quota
share percentage of:
(i) The total amount "Due WRL", as shown in Schedule C1,
and
(ii) The total amount "Due WRL", as shown in Schedule C2.
VII. REPORTING
1. The Reinsured shall assume responsibility for the
administration of all reinsurance under this Agreement and
will provide the Reinsurer with information as set forth in
Schedule C1 through Schedule J of this Agreement. The
Reinsurer may request, at its option, to review, at the
administrative office of the Reinsured, any papers associated
with the issuance of any annuity contract subject to Automatic
Reinsurance under this Agreement. In addition, the Reinsured
will provide the Reinsurer with information necessary to
properly account for the business reinsured and exercise its
obligation as a member of the Investment Management Committee.
2. Not later than twenty (20) days after the end of each quarter,
the Reinsured will submit a report substantially in accordance
with Schedules C1 and C2 accompanied by Schedules D2, E2, E3,
G, H, and I. The Reinsured agrees to provide or make available
to the Reinsurer such documentation as may be necessary to
support the items reported.
3. Not later than twenty (20) days after the end of each month,
the Reinsured will submit a report substantially in accordance
with Schedules D1, E1 and J.
4. Not later than thirty (30) days after the end of each calendar
year, the Reinsured will submit a report substantially in
accordance with Schedule F.
5. Not later than ninety (90) days after the end of each calendar
year, the Reinsured will provide a copy of its statutory
statement as filed with the State of Ohio.
6. Not later than one hundred twenty (120) days after the end of
each calendar year, the Reinsurer will provide a copy of The
WMA Corporation Form 10-K.
7. Not later than sixty (60) days after the end of each quarter,
the Reinsurer will provide a copy of The WMA Corporation Form
10-Q.
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VIII. POLICY CHANGES
1. Changes to the terms and conditions of annuity contracts
reinsured under this Agreement shall be made in accordance
with the provisions contained in this Article of the
Agreement.
2. If the change affects the plan, the amount of reinsurance,
premiums, commissions or policy changes under cession, the
Reinsured shall inform the Reinsurer in the subsequent
Reinsurance Report.
3. The Reinsured agrees to notify the Reinsurer in writing of any
anticipated material changes in the terms and conditions of
the annuity contracts.
IX. ANNUITIZATION
1. Any annuity contract annuitizing (going into payout status)
shall be deemed to be recaptured by the Reinsured.
2. On any annuity contract reinsured with the Reinsurer which
annuitizes, the Reinsurer will pay the Reinsured an amount
equal to the annuity contract's Annuity Value reduced by the
Contingent Deferred Sales Charge specified in the annuity
contract and premium tax, if any, previously paid by Reinsurer
with respect to the annuitized Annuity Contract.
X. DEPOSITS OF THE MODIFIED COINSURANCE RESERVE
1. The Reinsurer shall deposit with the Reinsured the modified
coinsurance reserves identified in Schedule H, for the
business reinsured under this Agreement.
2. For the purpose of this Article, modified coinsurance reserves
are defined to be the quota share percentage of the total
Separate Account Annuity Value of the annuity contracts
reinsured.
XI. INTEREST CREDIT (DEBIT) ON MODIFIED COINSURANCE RESERVE AND MODIFIED
COINSURANCE RESERVE ADJUSTMENT
1. The Reinsurer shall receive an interest credit (debit) on the
modified coinsurance reserve. The amount of the credit (debit)
will be determined as set forth in Schedule G.
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2. The Reinsured shall receive a modified coinsurance reserve
adjustment. The amount of the adjustment will be determined as
set forth in Schedule H.
3. Both the interest credit (debit) and the modified coinsurance
reserve adjustment will be made at the end of each calendar
quarter.
XII. REINSURANCE RESERVES
1. The Reinsured shall set up an Account Payable liability in its
financial statements equal to the quota share percentage of
the excess, if any, of the total Separate Account Annuity
Value of the reinsured annuity contracts over the total
Separate Account Statutory Reserve of the annuity contracts.
The Reinsurer shall set up an Account Receivable asset equal
to the Account Payable liability set up by the Reinsured.
2. The Reinsurer shall set up an Account Payable liability in its
financial statements equal to the quota share percentage of
the excess, if any, of the total Separate Account Statutory
Reserve of the reinsured annuity contracts over the total
Separate Account Annuity Value of the annuity contracts. The
Reinsured shall set up an Account Receivable asset equal to
the Account Payable liability set up by the Reinsurer.
3. The Reinsured will reduce its General Account Statutory
Reserves and Liabilities by the quota share percentage of the
total General Account Statutory Reserves and Liabilities
attributable to the reinsured policies, as shown in Schedule
C2. The Reinsurer will increase its General Account Statutory
Reserves and Liabilities by an amount equal to the reduction
taken by the Reinsured.
4. For purposes of Sections 1, 2 and 3 of this Article, the
Statutory Reserve shall be calculated by the Reinsured
according to the "Commissioner's Annuity Reserve Valuation
Method" as prescribed in the NAIC Standard Valuation Law and
approved by the State of Ohio Department of Insurance. The
General Account Statutory Reserves and Liabilities will be the
reserves associated with the Fixed Account and will include
the reserves for the guaranteed minimum death benefit.
5. In the event the Reinsurer is not licensed or otherwise
accredited or authorized as a reinsurer in the State of Ohio
and in any other jurisdiction where the Reinsured is licensed
to do business, the Reinsurer agrees to provide Letters of
Credit or other forms of security acceptable to the State of
Ohio Department of Insurance, in favor of the Reinsured for
the purpose of offsetting ceded Statutory Reserves and
liabilities and any outstanding losses if reinsurance credits
are not otherwise available. Such Letters of Credit shall be
issued in compliance with the statutes and regulations of the
State of Ohio and shall be issued by a financial institution
located in the United States chosen by the Reinsurer, which
has applied for and has met the standards of financial
conditions set forth by the NAIC's Securities Valuation
Office.
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6. The Letter(s) of Credit in favor of the Reinsured will be an
amount which at all times should equal or exceed the
reinsurance credits taken or reasonably estimated to be taken
by the Reinsured in connection with this Agreement under
Exhibit 8, under Exhibit 11, Part 1, Column 4, Line 4c, and
any other Liabilities held for the Reinsured Policies and
reported on the Reinsured's statutory financial statements.
Subject to the approval of the State of Ohio Department of
Insurance, the amount of the Letter of Credit may be reduced
by the quota share percentage of the excess of the Separate
Account Annuity Value over the Separate Account Statutory
Reserve. Should the reinsurance credit not be allowed, as a
result of this reduction in any applicable jurisdiction, the
Letter of Credit will be restored to the value that it would
have been without this reduction.
7. The Letter of Credit shall be substantially in the form set
forth in Exhibit B or in such other form as the Ohio Insurance
Department or other applicable state Insurance Department may
require or permit. The terms of the Letter of Credit shall
provide that: it is not conditioned on the delivery of any
other documents or materials; it is irrevocable without the
consent of the Reinsured; it is automatically renewable as
provided in Exhibit B; and its initial term is for a period of
not less than one (1) year. Such Letter of Credit may be drawn
upon at any time, notwithstanding any other provisions in this
Agreement, but shall be utilized by the Reinsured or its
successors only for one or more of the following reasons:
(i) to fund an account on behalf of the Reinsured in an
amount at least equal to the deduction, for
reinsurance ceded, from the Reinsured's reserves and
liabilities for Reinsured Plans, as specified in
Paragraph 6 of this Article and/or
(ii) to pay any other amounts the Reinsured claims are due
under this Agreement.
8. Such Letter(s) of Credit shall be promptly issued and
delivered to the Reinsured; but in no event shall the
Letter(s) of Credit be issued or confirmed later than December
31 in respect of the year for which the Reinsured is taking
credits for such reinsurance in its statutory financial
statements, and in no event shall the Letter(s) of Credit be
delivered to the Reinsured later than thirty (30) days after
such December 31.
XIII. GENERAL PROVISIONS
1. Parties to Agreement. This Agreement is a contract solely
between the Reinsurer and the Reinsured. The acceptance of
reinsurance hereunder shall not create any right or legal
relation between the Reinsurer and the insured, beneficiary,
or any other party to any annuity contract of the Reinsured,
which may be reinsured hereunder.
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2. Reinsurance Conditions. The reinsurance is subject to the same
limitations and conditions as the insurance under the annuity
contracts written by the Reinsured on which the reinsurance is
based.
3. Expenses. The Reinsurer will have liability equal to the quota
share percentage of any extra-contractual damages which are
rendered against the Reinsured as a result of acts, commission
or course of conduct committed by a Producer of an affiliated
broker-dealer identified in Exhibit A, in connection with the
annuity contracts reinsured under this Agreement. The
Reinsurer will receive the quota share percentage of any
reimbursement that the Reinsured collects from World Marketing
Alliance, Inc. or its affiliates. In no event whatsoever will
the Reinsured have any liability for extra-contractual damages
assessed against the Reinsurer as a result of acts, omissions,
or course of conduct committed by the Reinsurer in connection
with the reinsurance of the annuity contracts under this
Agreement.
4. Oversights. If failure to pay any premium due or to perform
any other act required by this Agreement is unintentional and
is caused by misunderstanding, oversight or clerical error,
the Reinsured and the Reinsurer shall be restored to the
position they would have occupied had the misunderstanding,
oversight or clerical error not occurred.
5. Inspection. The Reinsured and the Reinsurer, their auditors
and any regulators having authority over the Reinsured and/or
the Reinsurer, shall have the right, at all reasonable times,
and at their expense, to inspect at the office of the other
party all books, records, procedures, and documents of the
other party relating to this Agreement. A party or its auditor
conducting such inspection shall give the other party one (1)
week advance written notice. The Reinsured, its auditors and
regulators shall have the same right to inspect, verify and
value any assets held in a trust account or otherwise held for
the benefit of the Reinsured. The party being audited or
inspected agrees to cooperate in the audit, including
providing any information requested by the other party or its
auditor in advance of the audit or inspection. Upon request,
the Reinsured agrees to furnish the Reinsurer with copies of
any underwriting information in the Reinsured's files
pertaining to a reinsured policy or reinsured rider.
It is mutually agreed by the Reinsured and the Reinsurer that
any information that is made available for inspection under
this section of the Agreement shall, to the extent legally
possible, be kept confidential and under no circumstances may
this information be disclosed to, or made available for
inspection by, any third party without the prior consent of
the other contracting party.
6. Assignment or transfer. In no event shall either the Reinsured
or the Reinsurer assign any of its rights, duties or
obligations under this Agreement without the prior written
approval of the other party. Such approval shall not
unreasonably be withheld.
In no event shall either the Reinsured or the Reinsurer
transfer either the Annuity Contracts Reinsured under this
Agreement or the reinsurance without the prior
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written approval of the other party. Such approval shall not
unreasonably be withheld.
7. Entire Agreement. This Agreement represents the entire
agreement between the Reinsurer and the Reinsured and
supersedes any prior oral or written agreements between the
parties regarding its subject matter.
8. Alterations to Agreement. Any alteration, which may from time
to time become necessary in this Agreement, shall be made by
amendment attached to the Agreement embodying such alterations
as may be agreed upon and taken as part of this Agreement and
equally binding. No modification or waiver of any provision of
this Agreement shall be effective unless set forth in written
amendment to this Agreement, which is executed by both
parties. A waiver shall constitute a waiver only with respect
to the particular circumstance for which it is given and not a
waiver of any future circumstance.
9. If any provision of this Agreement shall be held or made
invalid by an order of a court of competent jurisdiction,
statute, rule or otherwise, the remainder of this Agreement
shall not be affected thereby. This Agreement shall be
construed in accordance with the applicable federal law and
the laws of the State of Ohio and the rights and obligations
of this Agreement shall, at all times, be regulated under the
laws of the State of Ohio.
10. Taxes. The Reinsurer shall reimburse the Reinsured for any
U.S. Excise Tax the Reinsured is required to pay under the
U.S. Internal Revenue Code for the reason that the Reinsurer
fails to make an election or terminates its election to file
U.S. federal income tax returns or otherwise ceases or fails
to file such return. The Reinsurer shall reimburse the
Reinsured for the quota share percentage of any other federal
or state taxes or state guaranty fund assessments the
Reinsured may be required to pay with respect to the Reinsured
Plans, but not including federal income tax paid with respect
to the Reinsured Plans. This Paragraph does not diminish in
any way the provisions of Article XVII, DAC Tax.
11. Insolvency of the Reinsured.
(a) The Reinsured shall immediately give Reinsurer
written notice of an event constituting insolvency of
the Reinsured. However, whether such notice is timely
given or not, in the event of the insolvency of the
Reinsured, all amounts relating to reinsurance made,
ceded, renewed or otherwise becoming effective under
this Agreement shall be payable by the Reinsurer
directly to the Reinsured or to its liquidator,
receiver or statutory successor on the basis of the
liability of the Reinsured without diminution because
of the insolvency of the Reinsured or because the
Reinsured or Reinsured's legal representative has
failed to pay all or a portion of amounts owed to
Reinsurer under this Agreement. It is understood,
however, that in the event of the insolvency of the
Reinsured, the liquidator or receiver or statutory
successor of the insolvent Reinsured shall give
written notice to the Reinsurer of the pendency of a
claim against the
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insolvent Reinsured on the policy reinsured within a
reasonable time after such claim is filed in the
insolvency proceeding and that during the pendency of
such claim that the Reinsurer may investigate such
claim and interpose in the name of the Reinsured (or
its liquidator, receiver or statutory successor), at
the Reinsurer's own expense, in the proceeding where
such claim is to be adjudicated any defense or
defenses which it may deem available to the Reinsured
or its liquidator or receiver or statutory successor.
(b) It is further understood that the expenses thus
incurred by the Reinsurer shall be chargeable,
subject to court approval, against the insolvent
Reinsured as part of the expense of liquidation to
the extent of a proportionate share of the benefit
which may accrue to the Reinsured solely as a result
of the defense undertaken by the Reinsurer. When two
or more reinsurer's are participating in the same
claim and a majority in interest elects to interpose
a defense or defenses to such claim, the expense
shall be apportioned in accordance with the terms of
this Agreement as though such expense had been
incurred by the Reinsured.
12. Insolvency of the Reinsurer. The Reinsurer shall immediately
give the Reinsured written notice of an event constituting
insolvency of the Reinsurer. Upon the insolvency of the
Reinsurer, whether notice thereof was given by the Reinsurer
or not, the Reinsured has the right to immediately, by written
notice, terminate this Agreement and recapture all reinsurance
under this Agreement. Notwithstanding such termination or
recapture, Reinsurer or its legal representative shall
continue to be liable to the Reinsured for any obligations of
the Reinsurer under this Agreement still outstanding after
giving effect to such recapture.
13. For the purpose of this Agreement, either the Reinsurer or the
Reinsured shall be deemed "insolvent" under the following
circumstances:
(a) when a cease and desist order or injunction has been
issued by the commissioner or a court of competent
jurisdiction in its state or jurisdiction of domicile
ordering either party to cease and desist from
transacting, soliciting or writing any new business
of any kind and is reasonably expected to result in
conservatorship, rehabilitation, receivership, or
liquidation; or
(b) when a court of competent jurisdiction order is
issued voluntarily or involuntarily placing either
party into conservatorship, rehabilitation,
receivership, or liquidation, or appointing a
conservator, rehabilitator, receiver or liquidator to
take over the business of either party; or
(c) when it files or consents to the filing of a petition
in bankruptcy, seeks reorganization or an arrangement
with creditors or takes
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advantage of any bankruptcy, dissolution, liquidation
or similar law or statute.
14. Offset. The Reinsurer and the Reinsured shall consider any
balance due and unpaid, matured or unmatured, liquidated or
unliquidated, regardless of when they arose or were incurred,
whether on account of premiums, allowances, policy charges,
losses, claims expenses, or any other amount in accordance
with the terms of this Agreement, or any other reinsurance
agreement, due from one party to another to be mutual debits
or credits under this Agreement and shall be offset and only
the balance allowed or paid. If either the Reinsured or
Reinsurer is then under any formal insolvency proceedings,
this right of offset shall be subject to the laws of the
domiciliary jurisdiction of the then insolvent party.
15. Non-Guaranteed Charges, Benefits and Interest Rates. The
Reinsured agrees to manage the non-guaranteed charges,
benefits, and interest rates in a way that balances the
interests of the owners, agents, stockholders, contract
owners, and the Reinsurer, while exercising sound actuarial
professional judgment. Any changes in the non-guaranteed
contract charges, benefits, and interest rates will be
accompanied by an actuarial report prepared in accordance with
the standards described in the Actuarial Standards of Practice
No. 1, as Reformatted and Readopted in 1990 by the Actuarial
Standards Board. The actuarial report should disclose a
description of the framework within which the actuary's advice
has been developed, a description of the facts, methods,
procedures and assumptions upon which the advice was based,
and the other information called for by the Actuarial Standard
of Practice No. 1. Should the Reinsurer determine that the
Reinsured has not balanced the interests of the Reinsured with
the interests of the Reinsurer and agreement cannot be
reached, any claims may be settled by arbitration in
accordance with Article XV, Arbitration.
16. Investment Management Committee. The parties shall form an
Investment Management Committee consisting of one (1) member
each from the Reinsured and the Reinsurer. The Reinsured shall
provide the Reinsurer copies of its investment policies and
crediting rate strategies. The Reinsurer shall provide the
Reinsured its investment policies. If either party changes its
investment policies or crediting rate strategies, it shall
promptly provide the other party a copy of such changes. The
purpose and function of the Investment Management Committee
shall be to recommend crediting rates to the Reinsured for
approval in accordance with the provision set forth in Exhibit
C, Guidelines for Crediting Rates.
17. Forms and Manuals. The Reinsured agrees to make available to
the Reinsurer copies of all appropriate policy forms,
prospectuses, application forms, and other related material.
If new material is published, or changes are made in the
material already filed, the Reinsured agrees to promptly
provide the Reinsurer with copies of such material.
18. Definitions. Any term not defined in this Agreement which is
in general usage in the life insurance and annuity industry
shall be given the same meaning as
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such general usage ascribes to that term, giving due
consideration to the context in which the term is used in this
Agreement.
19. Headings. The headings of the Articles, Paragraphs and any
subparagraphs and Schedules of this Agreement are inserted for
convenience of reference only and shall not constitute a part
of this Agreement.
XIV. RECAPTURE
1. With the exception of the provisions in Article IX,
Annuitization, business reinsured under this Agreement will
not be eligible for recapture, except the Reinsured reserves
the right to recapture any business that has been enforce
thirty-five (35) years after the policy issue date.
Furthermore, should a state regulatory body rule that this
Agreement is not valid for any reason, and there is no
remedial action available to correct the situation, the
Reinsured reserves the right to recapture that portion of the
business that was reinsured. Any adjustment in values as a
result of recapture will be agreed upon at the time of the
recapture. If agreement cannot be reached, any claims will be
settled in accordance with the provision of Article XV,
Arbitration.
XV. ARBITRATION
1. Any controversy or claim between the Reinsured and the
Reinsurer, arising out of or relating to this Agreement or the
breach thereof or the coverage of this arbitration provision,
shall be settled by arbitration.
2. There shall be three (3) arbitrators who shall be current or
former officers of life insurance companies or life
reinsurer's. However, unless otherwise consented to in writing
by the parties, such person shall not be a current or former
employee of, or current or former consultant to, the parties
or any affiliate or reinsurer of the parties; nor shall he or
she have any current employment or affiliation with,
consulting or contractual engagement with, or financial
interest in: a party to this Agreement or persons or companies
affiliated or associated with a party to this Agreement. The
Reinsured shall appoint one of the arbitrators and the
Reinsurer shall appoint a second arbitrator and these two
arbitrators shall select the third. If either party shall fail
to appoint an arbitrator within thirty (30) days after the
other party has given notice of its appointment of an
arbitrator, the appointment of the arbitrator for the party
which has so failed to appoint an arbitrator shall be left to
the other party. Should the two arbitrators appointed by or
for the parties fail to agree on the choice of the third,
within sixty (60) days of their appointment then each of them
shall name three (3) individuals, of whom the other shall
decline two (2), and the decision shall be made by drawing
lots.
14
16
3. Arbitration shall be conducted in accordance with the
Commercial Arbitration Rules of the American Arbitration
Association which shall be in effect on the date of delivery
of demand for arbitration; except, however, that arbitrators
shall be appointed in accordance with the provisions of
Paragraph 2 of this Article and that, to the extent any other
terms or provisions of this Article are inconsistent with or
in conflict with the Commercial Arbitration Rules, this
Article shall control.
4. The arbitration shall be conducted in a location to be
determined by a majority of the Arbitrators.
5. The Reinsured and the Reinsurer shall each pay that part of
the expense of arbitration, which shall be apportioned to it
by the arbitrators.
6. The award rendered by the arbitrators shall be final, and
judgment may be entered upon it in any court having
jurisdiction thereof.
7. The Arbitrators shall base their decision on the terms and
conditions of this Agreement and, as necessary, on the customs
and practices of the life reinsurance and life insurance
industries rather than on a strict interpretation of
applicable law.
XVI. IMPROPER SOLICITATION OF ANNUITY CONTRACT OWNERS
1. Neither party, nor any affiliate thereof, shall contact or
authorize any other person to contact owners of the annuity
contracts for the purpose of soliciting surrender of the
annuity contracts, conversion of the annuity contracts to
another form of insurance, making policy loans or withdrawals
without prior written approval of the other party.
XVII. DAC TAX - SECTION 1.842(g)(8) ELECTION
1. The Reinsurer and the Reinsured each acknowledge that it is
subject to taxation under Subchapter "L" of the Internal
Revenue Code of 1986 (The "Code").
2. The Reinsured and the Reinsurer 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 1998 and for all subsequent taxable years for
which this Agreement remains in effect.
3. The terms used in this Article are defined by reference to
Regulation Section 1.848-2 in effect December 1992.
4. Each party agrees to attach a schedule to its federal income
tax return, which identifies this Agreement for which the
joint election under the Regulation has been made.
15
17
5. 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 Section
848(c)(1)
6. 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.
7. The Reinsured will submit a schedule to the Reinsurer by May
1, of each year, of its 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
Reinsured stating that the Reinsured will report such net
consideration on its tax return for the preceding calendar
year.
8. The Reinsurer may contest such calculation by providing an
alternative calculation to the Reinsured in writing within
thirty (30) days of the Reinsurer's receipt of the Reinsured's
calculation. If the Reinsurer does not so notify the
Reinsured, the Reinsurer will report the net consideration as
determined by the Reinsured in the Reinsurer's tax return for
the previous calendar year.
If the Reinsurer contests the Reinsured's 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 the Reinsurer submits its alternative calculation.
If the Reinsured and the Reinsurer reach agreement on an
amount of net consideration, each party shall report such
amount in their respective tax returns for the previous
calendar year.
XVIII. DURATION OF AGREEMENT
1. Except as provided in Article XIV, Recapture, in force
reinsurance which has been ceded under this Agreement shall be
unlimited as to its duration and shall be maintained in force
for so long as such policies shall remain in force and the
reinsurance premiums and payments referenced in Article V,
Premiums and VI Payments By Reinsurer, are paid when due.
2. Term of Agreement. The initial term of this Agreement shall be
five (5) years. During and after the initial term, this
Agreement may be canceled as it pertains to the reinsurance of
new business thereafter:
(a) immediately upon written notice by a party if the
other party becomes insolvent, dissolves, ceases to
legally exist, or otherwise ceases to be legally
authorized to act as a reinsurer or insurer,
respectively, in its domiciliary jurisdiction;
(b) upon thirty (30) days written notice by a party if
the other party has materially breached this
Agreement and has failed to cure such breach within
such thirty (30) days;
16
18
(c) when and as agreed upon by the parties in writing.
4. After the initial term of this Agreement, this Agreement may
also be canceled by either party, as it pertains to the
reinsurance of new business thereafter, by giving three
hundred sixty-five (365) days advance notice of cancellation
in writing. In such case, the Reinsurer shall continue to
cede, and the Reinsurer shall continue to accept reinsurance,
under this Agreement on policies and riders issued during the
three hundred sixty-five (365) day period, and the interest of
the Reinsurer in new business shall cease at the end of the
three hundred sixty-five (365) day period.
XIX. WRITTEN NOTICE
1. Any notice given in connection with this Agreement shall be
deemed to be provided when it is sent by facsimile to the
numbers shown below, or by first class mail or by courier to
the addresses set forth below, or to the last address or
facsimile number of record such party designates in writing:
If to the Reinsured: With a Copy to:
Western Reserve Life Assurance Co. of Ohio Western Reserve Life Assurance Co. of Ohio
000 Xxxxxxxx Xxxxxx 000 Xxxxxxxx Xxxxxx
Xxxxx, Xxxxxxx 00000 Xxxxx, Xxxxxxx 00000
Attn: Chief Actuary, Attn: Managing Actuary,
Xxxx Xxxxxx Xxxxx Xxxxxxxx
Facsimile: (000) 000-0000 Facsimile: (000) 000-0000
If to the Reinsurer: With a Copy to:
WMA Life Insurance Company Limited The WMA Corporation
Xxxxx Xxxxx, 00 Xxxxxx Xxxxxx 00000 Xxxxx Xxxxx Xxxxxxx
Xxxxxxxx XX 00, Xxxxxxx Xxxxxx, XX 00000-0000
Attn: Manager Attn: Chief Financial Officer
Facsimile: (000) 000-0000 Facsimile: (000) 000-0000
Xxxxx X. Xxxxxx, Esq.
Xxxxxxx & Xxxxxx
000 Xxxxxxxx Xxxxxxx, Xxxxx 000
Xxxxxxx, XX 00000
Facsimile: (000) 000-0000
17
19
XX. EXECUTION
In witness of the above, the Reinsured and the Reinsurer, by their
respective officers have executed this Agreement in duplicate at the
dates and places indicated and shall be effective as of January 1,
1998.
WESTERN RESERVE LIFE WMA LIFE INSURANCE
ASSURANCE CO. OF OHIO COMPANY LIMITED
at Largo, FL at Ventura, CA/Duluth, GA
---------------------------- ---------------------------------
on July 28 , 1998. on July 29 , 1998.
--------------------- --------------------------
By: /s/ Xxxx Xxxxxx By: /s/ Xxxxxx X. XxXxxxxx
--------------------------- --------------------------------
Title: Exec. V.P. Title: V.P. & Actuary
By: /s/ Xxxxx Xxxxxxxx By: Wood Xxxxxxxxxx
--------------------------- --------------------------------
Title: V.P. & Managing Actuary Title: Executive Vice President
18
20
XX. EXECUTION
In witness of the above, the Reinsured and the Reinsurer, by their
respective officers have executed this Agreement in duplicate at the
dates and places indicated and shall be effective as of January 1,
1998.
WESTERN RESERVE LIFE WMA LIFE INSURANCE
ASSURANCE CO. OF OHIO COMPANY LIMITED
at at Duluth, GA
---------------------------- ---------------------------------
on , 1998. on July 29 , 1998.
--------------------- --------------------------
By: By: /s/ Xxxxxx X. Xxxxxxxxxx
--------------------------- --------------------------------
Title: Title: Executive Vice President
By: By: /s/ Wood Xxxxxxxxxx
--------------------------- --------------------------------
Title: Title: Exec. X.X.
00
00
Exhibit A
PRODUCER
Annuity contracts and applicable riders must be sold by and distributed through:
WMA Securities, Inc. (and/or its successors) and its affiliates.
18
22
Exhibit B
FORM OF LETTER CREDIT
Effective Date
Western Reserve Life Assurance Co. of Ohio
000 Xxxxxxxx Xxxxxx
Xxxxxxxxxx, XX 00000
Gentlemen:
We have established this clean, irrevocable and unconditional Letter of Credit
in your favor as beneficiary for drawings up to ________________________________
effective immediately. This Letter of Credit is issued, and payable at our
office at ________________________ and expires with our close of business on
___________________. Except when the amount of this Letter of Credit is
increased, this Letter of Credit cannot be modified or revoked without your
consent.
The term "Beneficiary" includes any successor by operation of law of the named
Beneficiary. If a court of law appoints a successor in interest to the named
Beneficiary, then the named Beneficiary includes and is limited to the court
appointed domiciliary receiver (including conservator, rehabillitator or
liquidator).
We hereby undertake to promptly honor your sight draft(s) drawn on us,
indicating our Letter of Credit No. __________, for all or any part of this
Letter of Credit upon presentation of your draft drawn on us at our office
specified in paragraph one on or before the expiration date hereof or any
automatically extended expiry date.
Except as expressly stated herein, this undertaking is not subject to any
agreement, requirement or qualification. Our obligation under this Letter of
Credit is our individual obligation and is in no way contingent upon
reimbursement with respect thereto, or upon our ability to perfect any lien,
security interest or any other reimbursement.
This Letter of Credit is deemed to be automatically extended, without amendment,
for one year from the expiration date hereof, or any future expiration date,
unless at least thirty days prior to
19
23
such expiration date we notify you by Registered Mail or Certified Mail that
this Letter of Credit will not be renewed for any such additional period.
This Letter of Credit is subject to and governed by the Laws of the State of
Ohio and the 1993 Revision of the Uniform Customs and Practice for Documentary
Credits of the International Chamber of Commerce (Publication 500) and, in the
event of any conflict, the Laws of the State of Ohio will control. If this
Letter of Credit expires during an interruption of business as described in
Article 17 of said Publication 500, we hereby specifically agree to effect
payment if this Letter of Credit is drawn against within thirty days after the
resumption of business.
Very truly yours,
20
24
Exhibit C
GUIDELINES FOR CREDITING RATES
The Investment Management Committee adopts the following guidelines for
recommending crediting rates:
1. In each quarter, the Investment Management Committee will
present its recommended crediting rates for the following
quarter to the Reinsured for approval. In recommending such
rates, the Investment Management Committee shall consider the
expected earned rate for the quarter (the reinsured portion of
which will be provided by the Reinsurer), the assumed pricing
spread, and any potential adverse impact which rate changes
may have on the persistency of the block of business.
2. It is expected the Investment Management Committee and the
reinsured will be able to reach agreement. However, if the
Investment Management Committee and the reinsured are unable
to reach agreement, the Reinsured may establish the renewal
crediting rates.
3. Should the ownership of the Reinsured change from that which
existed at the inception of this Agreement, or should the
total amount of the Fixed Account payments ceded to any one
reinsurer exceed the Fixed Account payments retained for the
Reinsured Plans for any quarter, the Reinsured may not set a
crediting rate greater than the rate determined by the formula
specified below. The formula takes into account the level of
remaining surrender charges for the plan/contract year cell
and the extent to which first year rates on competing
annuities exceed the previous year's rate for the cell.
Failure to abide by this condition will result in the
Reinsurer being liable only for Fixed Account benefits
calculated in accordance with an interest rate that would have
resulted had the formula below been used from the time that
the rate exceeded the maximum to the date that the benefit was
paid.
a. If the "average competitor rate" is *:
i. *
ii. equals the * rate.
* Material omitted pursuant to Rule 24b-2 under the Securities Exchange Act of
1934.
21
25
The "average competitor rate" will be the average of the first
year crediting rates provided by a group of competing annuity
issues. The Reinsured will be responsible for selecting these
competing annuity issuers, subject to the Reinsurer's
approval, and monitoring the first year crediting rates for
these issuers on an ongoing basis.
For example, if the average competitor rate for a quarter is
8.5%, then the maximum rate which the Reinsured may credit
under this circumstance for a plan cell with a * credited rate
of 7% and * would be 7.5% (i.e., *).
b. If the average competitor rate is less than or equal
to the previous year's rate for the cell, the renewal
rate shall not exceed *, where
i. equals the * rate,
ii. equals the average competitor rate and
*.
* It reflects the fact that the greater the surrender charge
is, the less likely the policy will surrender and the less
amount by which the previous year's rate will need to be
reduced. *, the credited rate will be lowered towards the
current market level.
* Material omitted pursuant to Rule 24b-2 under the Securities Exchange Act of
1934.
22
26
Schedule A
BUSINESS REINSURED
1. Contract
Name: WRL Freedom Wealth Creator
Type: Flexible Payment Variable Accumulation Deferred Annuity
Form Number: VA16 and any state variations
2. Rider
a) Name: Nursing Care Facility Endorsement
Type: Benefit Endorsement
Form Number: END.88.07.90 and any state variations
23
27
Schedule B1
AMOUNT OF REINSURANCE
The amount of reinsurance under this Agreement shall be the Reinsurer's quota
share percentage shown below of the liability of the Reinsured on all annuity
contracts in the forms listed in Schedule A, Business Reinsured.
Ouota Share Percentages for Issue Dates in 1998: For issue dates in 1998, the
quota share percentage will be 40%.
Ouota Share Percentages for Issue Dates in 1999 and later: The Reinsurer and the
Reinsured will jointly determine the quota share percentages no later than
December 1st applicable to new issues in the following calendar year. The
determining factors for the quota share percentage are the expected WMA Total
Variable Annuity First Year Payments Collected by the Reinsured and the expected
WMA Total Variable Annuity First Year Payments written with all insurance
companies for the calendar year that the quota share percentage will be
applicable. This determination of the quota share percentage will be on a
mutually acceptable basis, recognizing the good faith nature of this Agreement,
and with references to the estimates made by both parties, based on the prior
periods' variable annuity payments.
The Scheduled Quota Share Percentages for each threshold of expected WMA Total
Variable Annuity First Year Payments Collected by the Reinsured are shown in the
following table:
WMA TOTAL VARIABLE SCHEDULED
ANNUITY FIRST YEAR QUOTA SHARE
PAYMENTS COLLECTED PERCENTAGE
BY THE REINSURED (IN
MILLIONS)
----------------------------------
$100-249 40%
----------------------------------
$250+ 50%
----------------------------------
For each threshold of expected WMA Total Variable Annuity First Year Payments
Collected by the Reinsured, a certain percentage of WMA Total Variable Annuity
First Year Payments is expected to be collected by the Reinsured. The thresholds
are as follows:
WMA TOTAL VARIABLE SCHEDULED % OF WMA TOTAL
ANNUITY FIRST YEAR VARIABLE ANNUITY FIRST YEAR
PAYMENTS COLLECTED PAYMENTS TO BE COLLECTED BY
BY THE REINSURED (IN MILLIONS) THE REINSURED
-------------------------------------------------------------
$100-249 45%
-------------------------------------------------------------
$250+ 30%
-------------------------------------------------------------
24
28
The scheduled quota share percentages may be reduced if:
1. The percentage of expected WMA Total Variable Annuity First Year
Payment Collected by the Reinsured is less than the Scheduled
Percentage of expected WMA Total Variable Annuity First Year Payment
to be Collected by the Reinsured, and/or
2. The growth rate in expected WMA Total Variable Annuity First Year
Payment Collected by the Reinsured declines, as measured by the
financial reports of the Reinsured.
If the percentage of expected WMA Total Variable Annuity First Year Payment
Collected by the Reinsured to expected WMA Total Variable Annuity First Year
Payment Collected from all sources is less than the Scheduled Percentage of
expected WMA Total Variable Annuity First Year Payment Collected by the
Reinsured:
The quota share percentage may be reduced 5% for each full 5% reduction in the
Reinsured's Scheduled Percentage of expected WMA Total Variable Annuity First
Year Payment Collected by the Reinsured, as estimated by WMA's financial
statements. As an example, if the expected WMA Total Variable Annuity First Year
Payment Collected by the Reinsured is $225 Million, but the $225 Million is only
35% of expected WMA Total Variable Annuity First Year Payment, the quota share
percentage may be reduced from 40% to 30%.
VOLUME QUOTA SHARE % OF PRODUCTION TO
REINSURED
------------------------------------------------
$100-249 30% 35%
------------------------------------------------
If the Reinsured's growth rate in expected WMA Variable Annuity Total First Year
Payment Collected by the Reinsured declines:
The quota share percentage may be reduced 5% if the growth rate is 0%, or less.
In both of the two situations that could cause a reduction in the quota share
percentage, any reduction in the quota share percentage will be mutually
acceptable to both parties.
25
29
Schedule B2
Commission and Expense Allowances*
1. Issue and Maintenance Expense Allowance
2. Sales and Marketing Expense Allowance
3. Commission Allowance
4. Claim Expense Allowance
5. Target Surplus Allowance
6. DAC Tax Allowance
*all multiplied by the quota share percentage.
1. Issue and Maintenance Expense Allowances
-----------------------------------------------------------------------------------------------------------
a. Issue Expense Allowance $* per contract issued
-----------------------------------------------------------------------------------------------------------
b. Maintenance Expense Allowance - $* per contract in force at end of each calendar
(all years) month
- *% of Fixed and Separate Account Value in
force at the end of each calendar quarter.
-----------------------------------------------------------------------------------------------------------
c. Exhibit 6 Expense Allowance (Intended to reflect Exhibit 6 type expenses.)
- Exhibit 6 Taxes paid Per the Reinsured Ledger
- Exhibit 6 Tax offsets Per the Reinsured Ledger
- Other, including guaranteed fund Per the Reinsured Ledger
assessments
d. Investment Operations Tax Accrued amount of reserve for any taxes that may result
from investment operations of sub-accounts
e. Gains (Losses) Per the Reinsured Ledger
2. Sales and Marketing Expense Allowance
a. Marketing Expense *% of first year collected payments.
3. Commission Allowances
Actual Commissions paid per the Reinsured ledger. Commission schedules, for
information purposes only, are as follows:
Percent of Collected Payments by Attained Age Percent of Annuity Value by Contract Anniversary**
CONTRACT
ATTAINED AGE HIGH MEDIUM LOW ANNIVERSARY HIGH MEDIUM LOW
0-74 * * * 1-7 * * *
75-85 * * * B+ * * *
86-89 * * *
*Plus a 2.00% bonus, depending on production. **Paid on contracts w/ annuity value of $5,000 or more
4. Claim Expense Allowance
a. Death Claim Expense $* per death claim termination
b. Other Termination Expense $* per all other terminations, excluding
annuitizations
5. Target Surplus Adjustment *% of Separate Account Annuity Value less prior
Target Surplus balance accrued at an effective annual
interest rate of *% (if positive); if amount is negative,
balance is paid to Reinsurer.
6. DAC Tax Allowance *% of the Nonqualified Payments.
* Material omitted pursuant to Rule 24b-2 under the Securities Exchange Act
of 1934.
30
Schedule C1 -- Quarterly Reports
Quarterly Settlement Report
WRL Freedom Wealth Creator Variable Annuity
Modified Coinsurance Settlement
31-Dec-1997
WMA
TOTAL QUOTA SHARE SOURCE
----- ----------- --------
A. Due WMA
1. Payments Ceded 0 0 G(qr)
2. Transfers-in from the Fixed Account 0 0 G(qr)
3. Mortality and Expense Risk Charges 0 0 E2(qpr)
4. Asset-Based Allowance 0 0 E2(qpr)
5a. Annual Administrative Charges 0 0 E2(qpr)
5b. less: Annual Administrative Charges from Fixed
Account 0 0 E2(qpr)
5c. equals: Annual Administrative Charges from
Separate Account 0 0 E2(qpr)
6. Contractholder Investment Gain on SA Annuity Value 0 0 E2(qpr)
7. Gain/(Loss) Adjustment on Transaction Processing 0 0 G(qr)
8. Investment Income on SA Target Surplus 0 0 Stat
9. Commission Allowance Chargebacks 0 0 I(qr)
----- -----------
10. Total Amount Due WMA = (1)+(2)+(3)+(4)+(5c)+(6)+(7)+(8)+(9) 0 0 Ext
B. Due WRL
1. Commission and Expense Allowances
a. Issue Expense Allowance 0 0 D2(qr)
b. Maintenance Expense Allowance 0 0 D2(qr)
c. Sales and Marketing Expense Allowance 0 0 D2(qr)
d. Commission Allowance 0 0 D2(qr)
e. Claim Expense 0 0 D2(qr)
----- -----------
f. Total Commission and Expense Allowances = sum (a) to (e) 0 0 D2(qr)
2. Benefits Ceded
a1. Surrenders 0 0 E2(qpr)
a2. less: Surrender Charges 0 0 E2(qpr)
b. Not-Taken Refunds 0 0 E2(qpr)
c. Maturities 0 0 E2(qpr)
d. Annuitizations 0 0 E2(qpr)
e1. Partial Withdrawals 0 0 E2(qpr)
e2. less: Surrender Charges 0 0 E2(qpr)
f. Death Claims (includes enhanced DB, interest) 0 0 E2(qpr)
g. Transfers-out-to the Fixed Account 0 0 G(qr)
----- -----------
h. Total Benefits Ceded = sum (a) to (g) 0 0
3. Modified Coinsurance Annuity Value Adjustment 0 0 H(qr)
4. SA Target Surplus Adjustment 0 0 I(qr)
5. DAC Tax Allowance 0 0 E2(qpr)
6. Total Amount Due WRL = (1f)+(2h)+(3)+(4)+(5) 0 0
C. Balance During the Period = A(10)-B(6) 0 0
1. If positive, the quota share balance is
due to be paid by WRL
2. If negative, the quota share balance is
due to be paid by WMA
The column headed "WMA Quota Share" shows the adjustment
by the Quota Share Percentage.
Sources:
D2(qr) Schedule D2 -- Quarterly Commission and Expense Report
E2(qpr) Schedule E2 -- Quarterly Production Report
G(qr) Schedule G -- Quarterly Interest Credit on Reserve Report
H(qr) Schedule H -- Quarterly ModCo Reserve Adjustment Report
I(qr) Schedule I -- Quarterly Target Surplus Adjustment Report
Ext WMA VA Mod-Co Seriatim File
Stat WRL Status file (Accounting general ledger)
31
Schedule C2 -- Quarterly Reports
Quarterly Reserve and Settlement Report
WRL Freedom Wealth Creator Variable Annuity
Coinsurance Settlement
31-Dec-1997
WMA
Total Quota Share Source
----- ----------- --------
CARVM Reserves without GMDB 0 0 E3(qrr)
GMDB Reserves 0 0 E3(qrr)
----- -----------
Total Statutory Reserves 0 0
CARVM Reserves without GMDB Split between SA and GA:
SA CARVM Reserves 0 E3(qrr)
Total SA Statutory Reserves 0 0
GA CARVM Reserves 0 0 E3(qrr)
GMDB Reserves 0 0 E3(qrr)
Total GA Statutory Reserves 0 0
Exhibit II, Part I, Column 4, Line 4a Liability 0 0 Acct
Other GA Liabilities 0 0 Acct
----- -----------
Total GA Reserves and Liabilities 0 0
Annuity Values
Separate Account Values 0 0 E3(qrr)
Fixed Account Values
Fund 11 0 E3(qrr)
Loan Balances 0 E3(qrr)
Total Fixed Account Values 0 0
----- -----------
Total Annuity Values 0 0
Cash Values 0 0 E3(qrr)
Quarterly Settlement
WMA
Total Quota Share Source
----- ----------- --------
A. Coinsurance Amounts Due WMA
1. Transfers-in to the Fixed Account 0 0 C1(qr)
2. Loan Principal Repaid during quarter 0 0 Stat
3. Loan Interest Paid during quarter 0 0 Stat
4. Interest on Payments and Net Transfers to Fixed
Account 0 0 E2(qpr)
5. Interest on M&E Risk Charges and A-B Allowances 0 0 E2(qpr)
----- -----------
6. Total Due WMA 0 0
B. Coinsurance Amounts Due WRL
1. Transfers-out from the Fixed Account 0 0 C1(qr)
2. New Loans taken during quarter 0 0 E2(qpr)
3. Interest on Commission and Expense Allowances 0 0 E2(qpr)
4. Interest on Benefits from Fixed Account 0 0 E2(qpr)
----- -----------
6. Total Due WRL 0 0
C. Balance During the Period = A(6) - B(5)
D. Total Reinsurance Premiums (Schedule C1 and Schedule C2) 0 C1 & C2
E. Total Payments by the Reinsurer (Schedule C1 and
Schedule C2) 0 C1 & C2
F. Total Reinsurance Settlement for the Period: (D - E) 0
1. If positive, the quota share balance is
due to be paid by WRL
2. If negative, the quota share balance is
due to be paid by WMA
SOURCES:
Stat WRL Status file (Accounting general ledger)
C1(qr) Schedule C1 -- Quarterly Settlement Report
C2(qr) Schedule C2 -- Quarterly Reserve and Settlement Report
E2(qpr) Schedule E2 -- Quarterly Production Report
E3(qrr) Schedule E3 -- Quarterly Reserve Report
Acct Financial Reporting Accounting and Death Claim Report
32
Schedule D1 -- Monthly Reports
Detail of Commission and Expense Allowances
WRL Freedom Wealth Creator Variable Annuity
Modified Coinsurance
31-Dec-1997
WMA
Total Quota Share Source
----- ----------- ------
1. Expense Allowances
a. Issue Expense Allowance 0 0 E1(mpr)
($* per issue, -$* for not-takens)
b. Maintenance Expense Allowance 0 0
($* per inforce end of month) 0 E1(mpr)
Premium Tax equals: 0
Premium taxes paid 0 WRL
-Premium tax offsets 0 WRL
Other, including guaranteed fund
assessments 0
Guar. Fund Costs 0
2. Sales and Marketing Expense Allowance 0 0
a. (*% of first year Payments) 0 E1(mpr)
3. Commission Allowances 0 0
a. High Option 0
Attained Age 0 - 74 0 DSS
Attained Age 75 - 85 0 DSS
Attained Age 00 - 00 0 XXX
Xxxxxx 0 XXX
b. Mid Option 0
Attained Age 0 - 74 0 DSS
Attained Age 75 - 85 0 DSS
Attained Age 00 - 00 0 XXX
Xxxxxx 0 XXX
c. Level Option 0
Attained Age 0 - 00 0 XXX
Xxxxxx 0 XXX
4. Renewal Marketing Expense Allowance 0 0 E3(qrr)
(*% of Total Annuity Value)
5. Claim Expense 0 0
a. Death Claim Expense ($* per death) 0 E1(mpr)
b. Other Termination Expense ($* per other, 0 E1(mpr)
excluding not-takens, annuitizations)
6. DAC Tax Allowance 0 0 E1(mpr)
(*% of Total Nonqualified Net
Transfers to Separate Account)
----- -----------
Total Commission and Expense Allowance 0 0
The column headed "WMA Quota Share" shows the adjustment by the
Quota Share Percentage.
Sources:
E1(mpr) Schedule E1 - Monthly Production Report
E3(qrr) Schedule E3 - Quarterly Reserve Report
WRL Actual WRL expenses and methods of reporting
DSS Commission Accounting Extract
* Material omitted pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934.
33
Schedule D2 -- Quarterly Reports
Detail Of Commission And Expense Allowances
WRL Freedom Wealth Creator Variable Annuity
Modified Coinsurance
31-Dec-1997
WMA
Total Quota Share Source
----- ----------- ------
1. Expense Allowances
a. Issue Expense Allowance 0 0 E2(qpr)
($* per issue, -$* for not-takens)
b. Maintenance Expense Allowance 0 0
($* per inforce per month, end
of month) 0 E2(qpr)
Premium Tax equals: 0
Premium taxes paid 0 WRL
-Premium tax offsets 0 WRL
Other, including guaranteed fund
assessments 0
Guar. Fund Costs 0 WRL
2. Sales and Marketing Expense Allowance 0 0
a. (*% of first year Payments) 0 E2(qpr)
3. Commission Allowances 0 0
a. High Option 0
Attained Age 0 - 74 0 DSS
Attained Age 75 - 85 0 DSS
Attained Age 00 - 00 0 XXX
Xxxxxx 0 XXX
b. Mid Option 0
Attained Age 0 - 74 0 DSS
Attained Age 75 - 85 0 DSS
Attained Age 00 - 00 0 XXX
Xxxxxx 0 XXX
c. Level Option 0
Attained Age 0 - 00 0 XXX
Xxxxxx 0 XXX
4. Renewal Marketing Expense Allowance 0 0 E3(qrr)
(*% of Total Annuity Value)
5. Claim Expense 0 0
a. Death Claim Expense ($* per death) 0 E2(qpr)
b. Other Termination Expense ($* per 0 E2(qpr)
other, excluding not-takens,
annuitizations)
6. DAC Tax Allowance 0 0 E2(qpr)
(*% of Total Nonqualified Net
Transfers to Separate Account)
----- -----------
Total Commission and Expense Allowance 0 0
The column headed "WMA Quota Share" shows the adjustment by the
Quota Share Percentage.
Sources:
E2(qpr) Schedule E2 - Quarterly Production Report
E3(qrr) Schedule E3 - Quarterly Reserve Report
WRL Actual WRL expenses and methods of reporting
DSS Commission Accounting Extract
___________
* Material omitted pursuant to Rule 24b-2 under the Securities Exchange Act of
1934.
34
Schedule E1 - Monthly Reports
Monthly Production and Policy Loads Report
WRL Freedom Wealth Creator Variable Annuity
Modified Coinsurance
31-Dec-1997
WMA
Total Quota Share Source
-------- ----- ----------- ------
In Force 30-Nov-1997 0 40% E1(mr)
Issues 0 XXx
Xxxxxxxxxxxxxx 0 XXx
-----
Total Increases 0
Surrenders 0 AEx
Not-Takens 0 AEx
Maturities 0 AEx
Annuitizations 0 AEx
Deaths 0 AEx
-----
Total Terminations 0
Net Change 31-Dec-1997 0
-----
In Force 31-Dec-1997 0
Initial and Purchase Payments
Qualified 0 0 Stat
Nonqualified 0 0 Stat
---------------------------------------------------------------------------------------------------------
1st Year 0
---------------------------------------------------------------------------------------------------------
Qualified 0 0 Stat
Nonqualified 0 0 Stat
---------------------------------------------------------------------------------------------------------
Renewal 0
---------------------------------------------------------------------------------------------------------
Total 0 0
Payments Allocated to Fixed Account 0 0 Stat
Payments Allocated to Separate Account 0 0 Stat
Mortality and Expense Risk Charges 0 0 J(mr)
Asset-Based Allowances 0 0 J(mr)
Annual Administrative Charges 0 0
Charges from Fixed Account 0 Ext
Charges from Separate Account 0 Ext
Benefits Paid During Month:
Separate Account Fixed Account
---------------------------- ---------------------------- Nonqualified
Gross With's Surr Charges Gross With's Surr Charges XX Xxxxx With's
1. Surrenders Stat
2. Not-Taken Refunds Stat
3. Maturities Stat
4. Annuitizations Stat
5. Partial Withdrawals Stat
6. Death Claims Stat
7. New Loans 0 Stat
Transfers - Fixed to Separate 0 Stat
Transfers - Separate to Fixed 0 Stat
Nonqualified Payments Allocated to Fixed
Total Nonqualified Net Transfers to Separate 0
Settlement Interest Rate on 15-Dec-1997 0.00% WSJ
Interest to End of Month on Payments and Net Transfers to Fixed Account 0 0 E1(mr)
Interest to EOM on Mortality and Expense Risk Charges and A-B Allowances 0 0 E1(mr)
Interest to End of Month on Commission and Expense Allowances 0 0 D1(mr)
Interest to End of Month on Benefits from Fixed Account 0 0 E1(mr)
The column headed "WMA Quota Share" shows the adjustment by the
Quota Share Percentage.
Sources:
E1(mpr) Schedule E1 - Monthly Production Report from current and prior
months
AEx Annuity Exhibit Access Database Report
Ext WMA VA Mod-Co Seriatim File
Stat WRL Status file (Accounting general ledger)
WSJ Wall Street Journal published on the date shown for the Settlement
Interest Rate
35
Schedule E2 - Quarterly Reports
Quarterly Production and Policy Loads Report
WRL Freedom Wealth Creator Variable Annuity
Modified Coinsurance
31-Dec-1997
WMA
Total Quota Share Source
----- ----------- -------
In Force 30-Sep-1997 0 40% E2(qpr)
Issues 0 XXx
Xxxxxxxxxxxxxx 0 XXx
-----
Total Increases 0 N/A
Surrenders 0 AEx
Not-Takens 0 AEx
Maturities 0 AEx
Annuitizations 0 AEx
Deaths 0 AEx
-----
Total Terminations 0 N/A
Net Change 31-Dec-1997 0 N/A
-----
In Force 31-Dec-1997 0 N/A
Initial and Purchase Payments
Qualified 0 0 Stat
Nonqualified 0 0 Stat
-------------------------------------------------------------------------------------------------------
1st Year 0
-------------------------------------------------------------------------------------------------------
Qualified 0 0 Stat
Nonqualified 0 0 Stat
-------------------------------------------------------------------------------------------------------
Renewal 0
-------------------------------------------------------------------------------------------------------
Total 0 0
Payments Allocated to Fixed Account 0 4,721,685 Stat
Payments Allocated to Separate Account 0 4,617,310 Stat
Mortality and Expense Risk Charges 0 0 E1(mpr)
Asset-Based Allowances 0 0 E1(mpr)
Annual Administrative Charges 0 0
Charges from Fixed Account 0 Ext
Charges from Separate Account 0 Ext
Benefits Paid During Month:
Separate Account Fixed Account
---------------------------- ---------------------------- Nonqualified
Gross With's Surr Charges Gross With's Surr Charges XX Xxxxx With's
1. Surrenders 0 0 0 0 0 E1(mpr)
2. Not-Taken Refunds 0 0 0 0 0 E1(mpr)
3. Maturities 0 0 0 0 0 E1(mpr)
4. Annuitizations 0 0 0 0 0 E1(mpr)
5. Partial Withdrawals 0 0 0 0 0 E1(mpr)
6. Death Claims 0 0 0 0 0 E1(mpr)
7. New Loans 0 0 0 0 0 E1(mpr)
Transfers - Fixed to Separate 0 0 0 E1(mpr)
Transfers - Separate to Fixed 0 0 0 E1(mpr)
Nonqualified Payments to Allocated to Fixed 0 E1(mpr)
Total Nonqualified Net Transfers to Separate 0 E1(mpr)
Interest to End of Quarter on Payments and Net Transfers to Fixed Account 0 0 E1(mr)
Interest to EOQ on Mortality and Expense Risk Charges and A-B Allowances 0 0 E1(mr)
Interest to End of Quarter on Commission and Expense Allowances 0 0 D1(mr)
Interest to End of Quarter on Benefits from Fixed Account 0 0 E1(mr)
The column headed "WMA Quota Share" shows the adjustment by the
Quota Share Percentage.
Sources:
--------
E1(mpr) Schedule E1 - Monthly Production Report from current and prior
months
AEx Annuity Exhibit Access Database Report
Ext WMA VA Mod-Co Seriatim File
Stat WRL Status file (Accounting general ledger)
WSJ Wall Street Journal published on the date shown for the
Settlement Interest Rate
36
Schedule E3 -- Quarterly Reports
Quarterly Reserve Report
WRL Freedom Wealth Creator Variable Annuity
Modified Coinsurance
31-Dec-1997
WWW
TOTAL QUOTA SHARE SOURCE
----- ----------- ------
CARVM Reserves without GMDB 0 0 Ext
GMDB Reserves 0 0 Ext
----- -----------
Total Statutory Reserves 0 0
CARVM Reserves without GMDB Split
between SA and GA:
SA CARVM Reserves 0 Ext
Total SA Statutory Reserves 0 0
GA CARVM Reserves 0 Ext
GMDB Reserves 0 Ext
Total GA Statutory Reserves 0 0
Exhibit II, Part I, Column 4, Line 4a
Liability 0 0 Acct
Other GA Liabilities 0 0 Acct
----- -----------
Total GA Reserves and Liabilities 0 0
Annuity Values
Separate Account Values 0 0 Ext
Fixed Account Values
Fund 11 0 Ext
Loan Balances 0 Ext
Total Fixed Account Values 0 0
----- -----------
Total Annuity Values 0 0
Cash Values 0 0 Ext
Sources:
Ext WMA VA Mod-Co Seriatim File
Acct Financial Reporting Accounting and Death Claim Report
37
Schedule F -- Annual Reports
Exhibit Of Annuity Contracts And Withdrawal And Surrender Activity
WRL Freedom Wealth Creator Variable Annuity
Modified Coinsurance
31-Dec-1997
Exhibit of Number of Annuity Contracts
Ordinary
(Year-to-Date Figures Shown:) Deferred Source
----------------------------- -------- -------
1. In Force end of Previous Year: 0 F(ar)
2. Issued during year: 0 E2(qpr)
3. Reinsurance Assumed: 0
4. Increased during year (net): 0 E2(qpr)
5. Total (Lines 1 to 4) 0
6. Decreased (net): 0 E2(qpr)
7. Reinsurance Ceded: 0
--
8. Totals (Lines 6 and 7) 0
--
9. In Force end of year: 0
Annual Partial Withdrawal and Surrender Report
WMA
Total Quota Share
----- -----------
Partial Withdrawals
Systematic 0 0 Ext
Required Distributions 0 0 Ext
Other 0 0 Ext
Total 0 0
Surrenders
Internal Replacement 0 0 Ext
Not Taken Refunds 0 0 Ext
Other 0 0 Ext
Total 0 0
The column headed "WMA Quota Share" shows the adjustment by the Quota Share
Percentage.
Sources:
Ext WMA VA Mod-Co Seriatim File
E2(qpr) Schedule E2 -- Quarterly Production Report
F(ar) Schedule F -- Annual Report from Prior Year
38
Schedule G -- Quarterly Reports
Quarterly Interest Credit (Debit) On Modified Coinsurance Reserve
WRL Freedom Wealth Creator Variable Annuity
Modified Coinsurance
31-Dec-1997
Change in
Benefits WMA S/A WMA
Paid Quota Share Xxx Value Quota Share Source
-------- ----------- --------- ----------- -------
A. Separate Account Annuity Value as of 30-Sep-1997 0 0 G(qr)
B. Increases in Separate Account Annuity Value
during the quarter
1. Payments Ceded 0 0 E2(qpr)
2. Transfers-in from the Fixed Account 0 0
Interfund Transfers 0 E2(qpr)
Fixed Account Annuity Value of Surrenders 0 E2(qpr)
Fixed Account Annuity Value of Not-Taken Refunds 0 E2(qpr)
Fixed Account Annuity Value of Maturities 0 E2(qpr)
Fixed Account Annuity Value of Annuitizations 0 E2(qpr)
Fixed Account Annuity Value of Partial Withdrawals 0 E2(qpr)
Fixed Account Annuity Value of Death Claims 0 E2(qpr)
-- -- --
3. Total Increases 0 0
Benefits Paid WMA Chg. In Xxx Value WMA
S/A + Fixed Quota Share S/A + Fixed Quota Share
------------- ----------- ----------------- -----------
C. Decreases in Separate Account
Annuity Value during the quarter
1. Surrenders 0 0 0 0 E2(qpr)
2. Not-Taken Refunds 0 0 0 0 E2(qpr)
3. Maturities 0 0 0 0 E2(qpr)
4. Annuitizations 0 0 0 0 E2(qpr)
5. Partial withdrawals 0 0 0 0 E2(qpr)
6. Death Claims 0 0 0 0 E2(qpr)
7. Transfers-out to the Fixed Account 0 0 0 0
Payments Allocated to Fixed Account 0 E2(qpr)
Transfers for New Loans Taken 0 E2(qpr)
Transfers-out to Fixed Account 0 E2(qpr)
-- -- -- --
8. Total Decreases 0 0 0 0
D. Separate Account Annuity Value as of 31-Dec-1997 0 0 H(qr)
E. Contractholder Investment Gain on Separate Account Annuity Value
as of the end of the quarter = D-[A+B(3)-C(8)] 0 0
The column headed "WMA Quota Share" shows the adjustment by the Quota Share
Percentage.
Sources:
G(qr) Schedule G -- Quarterly Report for prior quarter
H(qr) Schedule H -- Quarterly Mod-Co Reserve Adjustment
E2(qpr Schedule E2 -- Quarterly Production Report
Ext WMA VA Mod-Co Seriatim File
39
Schedule H -- Quarterly Reports
Quarterly Modified Coinsurance Reserve Adjustment
WRL Freedom Wealth Creator Variable Annuity
Modified Coinsurance
31-Dec-1997
WMA
Total Quota Share Source
----- ----------- -------
Increase in Modified Coinsurance Reserve Payable by WMA to WRL
A. Total Modified Coinsurance Reserve as of 30-Sep-1997 0 0 E3(qrr)
B. Total Modified Coinsurance Reserve as of 31-Dec-1977 0 0 E3(qrr)
C. Increase in Modified Coinsurance Reserve = B - A
(= Increase in Separate Account Annuity Values) 0 0
The column headed "WMA Quota Share" shows the adjustment by the
Quota Share Percentage.
Sources:
E3(qrr) Schedule E3 - Quarterly Reserve Report
40
SCHEDULE I -- QUARTERLY REPORTS
QUARTERLY TARGET SURPLUS ADJUSTMENT
WRL FREEDOM WEALTH CREATOR VARIABLE ANNUITY
MODIFIED COINSURANCE
31-DEC-1997
WWW
TOTAL QUOTA SHARE SOURCE
----- ----------- ------
A. Total SA Annuity Value as of the end
of the previous quarter 0 0 E3(qrr)
B. Target Surplus on SA Value (* x A) 0 0 WRL
C. Total SA Annuity Value as of the end
of the current quarter 0 0 E3(qrr)
D. Target Surplus on SA Value (* x C) 0 0 WRL
E. Increase in SA Target Surplus (D - B) 0 0 WRL
(= SA Target Surplus Adjustment)
F. Interest Credit on Target Surplus 0 0
(B x (* exp. (#days in quarter/365)-1)
The column headed "WMA Quota Share" shows the adjustment by the
Quota Share Percentage.
Sources:
E3(qrr) Schedule E3 - Quarterly Reserve Report
WRL Actual WRL method, based on factors determined by WRL.
* Material omitted pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934.
41
SCHEDULE J -- MONTHLY REPORT
MONTHLY M&E AND ASSET BASED ALLOWANCE CALCULATIONS
WRL FREEDOM WEALTH CREATOR VARIABLE ANNUITY
31-DEC-1997
M&E ANNUAL RATE: 1.40%
NUMBER OF DAYS IN REPORTING PERIOD 0
NUMBER OF BUSINESS DAYS IN PERIOD 19
SUB-ACCOUNT VALUES
MONEY STRATEGIC EMERGING AGGRESSIVE GROWTH
TOTAL MARKET BOND GROWTH GLOBAL TOTAL RETURN GROWTH GROWTH BALANCED & INCOME
----- ------ ---- ------ ------ ------------ -------- ---------- -------- --------
A. Average TNA for
the current month 0 0 0 0 0 0 0 0 0 0
B. Average Daily Cash
Change (sum of daily
cash changes/# days
in current month) 0 0 0 0 0 0 0 0 0 0
C. Average Daily M&E
fee (A x M&E)/365 0 0 0 0 0 0 0 0 0 0
D. Average Daily
Dividend Receivable
Balance (Money
Market Only) for the
current month) 0 0 0 0 0 0 0 0 0 0
E. Adjusted Monthly
Average TNA (A - B +
C - D) 0 0 0 0 0 0 0 0 0 0
F. Annual Asset Based
Allowance Factor(WRL
only) 0.25% 0.25% 0 .40% 0.40% 0.40% 0.40% 0.40% 0.40% 0.35%
G. Asset Based
Allowance for Month
(Entire Fund) (F x E
x #days in
month)/365 0 0 0 0 0 0 0 0 0 0
H. M&E fees for Month
(Entire Fund) (A x
M&E X #days in
month)/365 0 0 0 0 0 0 0 0 0 0
I. S/A Annuity Value
by Fund for all
Creator annuities 0 0 0 0 0 0 0 0 0 0
J. S/A AV by Fund for
Reinsured Contracts
by Issue Year
1998 0 0 0 0 0 0 0 0 0 0
1999 0 0 0 0 0 0 0 0 0 0
2000 0 0 0 0 0 0 0 0 0 0
K. Asset Based
allowance by Issue
Year (G x J)/I
1998 0 0 0 0 0 0 0 0 0 0
1999 0 0 0 0 0 0 0 0 0 0
2000 0 0 0 0 0 0 0 0 0 0
L. M&E fees for Month
by Issue Year (H x
J)/I
1998 0 0 0 0 0 0 0 0 0 0
1999 0 0 0 0 0 0 0 0 0 0
2000 0 0 0 0 0 0 0 0 0 0
TACTICAL
ASSET
--------
A. Average TNA for
the current month 0
B. Average Daily Cash
Change (sum of daily
cash changes/# days
in current month) 0
C. Average Daily M&E
fee (A x M&E)/365 0
D. Average Daily
Dividend Receivable
Balance (Money
Market Only) for the
current month) 0
E. Adjusted Monthly
Average TNA (A - B +
C - D) 0
F. Annual Asset Based
Allowance Factor(WRL
only) 0.40%
G. Asset Based
Allowance for Month
(Entire Fund) (F x E
x #days in
month)/365 0
H. M&E fees for Month
(Entire Fund) (A x
M&E X #days in
month)/365 0
I. S/A Annuity Value
by Fund for all
Creator annuities 0
J. S/A AV by Fund for
Reinsured Contracts
by Issue
0
0
0
K. Asset Based
allowance by Issue
Year (G x J)/I
0
0
0
L. M&E fees for Month
by Issue Year (H x
X)/X
0
0
0
00
X.X.X.X. Global Value International U.S. 3rd Ave.
Growth Sector Equity Equity Equity Value
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0.40% 0.40% 0.40% 0.50% 0.40% 0.40%
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
