AUTOMATIC MONTHLY RENEWABLE TERM
REINSURANCE AGREEMENT FOR NON-EXCESS RISKS
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
(NAIC NO. 71153)
(FEIN 00-0000000)
AND
THE CANADA LIFE ASSURANCE COMPANY
(NAIC NO. 80659)
(FEIN 00-0000000)
EFFECTIVE DATE: OCTOBER 1, 2008
ARTICLES
I. The Agreement 3
II. Effective Date 3
III. Reinsurance Coverage 4
IV. Liability for Reinsurance 5
V. Underwriting Review 6
VI. Reinsurance Premiums 8
VII. Reinsurance Reporting 10
VIII. Credit for Reinsurance 11
IX. Errors 12
X. Policy Conversions, Other Changes, and Terminations 13
XI. Policy Reinstatement 17
XII. Claims 17
XIII. Extra-Contractual Obligations 21
XIV. DAC Tax Section 1.848-2(g)(8) Election 22
XV. Insolvency 23
XVI. Recapture of Reinsured Business 24
XVII. Offset 25
XVIII. Dispute Resolution 25
XIX. Arbitration 26
XX. Termination of this Agreement for New Business 27
XXI. Confidentiality 27
XXII. General Provisions 29
XXIII. Notices and Communications 33
Execution 34
SCHEDULES
A. Plans of Insurance Covered Under this Agreement 35
B. Reinsurance Specification 42
C. [This schedule left blank intentionally] 44
D. Special Underwriting Programs 45
E. Ceding Company's Standard Underwriting Practices and 48
Guidelines
F. Policies Eligible for Reinsurance Under this Agreement 63
EXHIBITS
I. Reinsurance Premium Calculation 64
II. Retention and Total Pool Issue Limits 68
III. Annual Rates per $1,000 of Reinsured Net Amount at Risk 72
IV. YRT Reinsurance Rate Factors 93
V. Substandard Table Percentages 94
VI. Conditional Receipt or Temporary Insurance Agreement 95
VII. Reinsurance Reports 99
ALL SCHEDULES AND EXHIBITS ATTACHED WILL BE CONSIDERED PART OF THIS REINSURANCE
AGREEMENT.
ARTICLE I
THE AGREEMENT
A. The Agreement and Parties to the Agreement
This is a monthly renewable term agreement for indemnity life reinsurance (the
"Agreement") solely between Hartford Life and Annuity Insurance Company, a
Connecticut corporation ("Ceding Company"), and The Canada Life Assurance
Company, a Canadian insurance company with its U.S. domestic port of entry in
the State of Michigan ("Reinsurer"). The Ceding Company and the Reinsurer are
each referred to individually as a "Party," and collectively as the "Parties,"
to this Agreement.
This Agreement shall be binding upon the Ceding Company and the Reinsurer and
their respective successors and assignees.
The acceptance of risks under this Agreement will create no right or legal
relationship between the Reinsurer and the insured, owner, beneficiary, or
assignee of any insurance policy or other contract of the Ceding Company. The
Ceding Company shall not attempt to make the Reinsurer a party to any litigation
between any third party and the Ceding Company.
B. Complete and Entire Agreement
This Agreement, which includes all Schedules and Exhibits attached hereto and
any amendments entered into hereafter, constitutes the entire agreement of the
Parties pertaining to the transaction contemplated by this Agreement. This
Agreement supersedes and replaces all oral and written agreements previously
made or existing by and between the Parties or their representatives with regard
to the transaction contemplated by this Agreement.
This Agreement shall not be amended or modified except by written amendment,
signed by duly authorized officers of each Party.
Notwithstanding the foregoing, the Parties contemplate that there may be
communications required under this Agreement that are not intended to change any
of its risk transfer characteristics. Such communications may include, but are
not limited to, reinsurance reporting and premium administration, underwriting
review, claim submission and review, participation in claim litigation and
settlements, audit reviews, and the resolution of disputes by arbitration or
court proceedings. These communications serve to clarify the obligations of the
Parties under this Agreement and should not be construed as modifications of
this Agreement. Any modifications of this Agreement shall be effected only by
written amendment as provided for above.
ARTICLE II
EFFECTIVE DATE
The Effective Date of this Agreement is October 1, 2008.
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ARTICLE III
REINSURANCE COVERAGE
Reinsurance under this Agreement will apply to those Plans of Insurance and
Riders set forth in Schedule A that also fall within a category of policies
eligible for reinsurance under this Agreement as described in Schedule F. Such
reinsurance shall be on an automatic basis, subject to the requirements set
forth below. The specifications for all reinsurance under this Agreement are
provided in Schedule B.
Automatic Reinsurance
Automatic Reinsurance under this Agreement is available only for risks that meet
the requirements of this Section.
For each risk under the policies that meets the requirements for Automatic
Reinsurance as set forth below, the Reinsurer will participate in a reinsurance
pool whereby the Reinsurer will automatically reinsure a portion of the risk as
indicated in Schedule B ("Automatic Pool"). The requirements for Automatic
Reinsurance are as follows:
1. Each life, at the time of application, must satisfy one of the following
requirements:
a. have been a legal resident of the United States or Canada for at
least six months; or
b. be a citizen of the United States or Canada.
2. Each risk must be underwritten according to the Ceding Company's Standard
Underwriting Practices and Guidelines or one of the special underwriting
programs. The Ceding Company's Standard Underwriting Practices and Guidelines as
of the Effective Date are described in Schedule E, and the Ceding Company's
special underwriting programs as of the Effective Date are described in Schedule
C or Schedule D. Changes to such documents will be handled in accordance with
Section XXII.L, and may not necessarily result in an amendment to this
Agreement; however, changes to Preferred Criteria will require an amendment.
If the Ceding Company would like to offer coverage at a risk class more
favorable than the True Assessed Risk Class, the Ceding Company may:
a. Reinsure the risk automatically under this Agreement with
Reinsurance Premium based on the True Assessed Risk Class; or
b. Decide not to reinsure the risk under this Agreement.
For purposes of this Agreement, "True Assessed Risk Class" shall mean the risk
class assessed by the Ceding Company prior to any adjustments made as a result
of the Ceding Company's Enhanced Standard or similar special underwriting
program.
3. The maximum issue age for each life is 75. For Last Survivor policies, the
minimum issue age is 18, for all other policies, the minimum age is 0.
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4. The mortality rating on each life does not exceed Table P. However, for Last
Survivor policies, one life may be uninsurable if the other life does not exceed
Table F.
5. The total amount of risk, including scheduled increases on that life, when
added to any other amounts of risk for that life already in the Automatic Pool
and any amounts not in the Automatic Pool that are retained by the Ceding
Company or its affiliated companies does not exceed the Total Allocation Limit
for that life shown in Exhibit II.
6. If all the other requirements for Automatic Reinsurance are met and the life
is a player or coach on a team in the National Hockey League, the National
Football League, the National Basketball Association or Major League Baseball,
the Ceding Company shall notify the Reinsurer at the time of issue of the risk.
The Ceding Company, by electronic mail, shall: (1) notify the Reinsurer of the
name, date of birth, sport and team affiliation, the total life insurance in
force and to be placed on the life, and the amount of new reinsurance coverage
required from the Reinsurer; and (2) confirm that an application for insurance
on the life has been completed.
7. The Ceding Company, or one of its affiliates, shall retain its share of each
risk on a life, as described in this Agreement and in any other life reinsurance
agreement applicable to risk on that life. However, the Ceding Company reserves
the right to reinsure separately any amount of the retained risk on a life
reinsured under this Agreement with these conditions:
a. The remaining amount of risk retained on that life by the Ceding
Company, on coverage reinsured under this Agreement, shall not be
less than of the amount of risk initially retained; and
b. Any amounts of retention separately reinsured in this manner shall
not reduce the amount of the Ceding Company's retention on that life
for the purpose of any other terms of this Agreement.
ARTICLE IV
LIABILITY FOR REINSURANCE
A. The Reinsurer's liability for Automatic Reinsurance will begin
simultaneously with the Ceding Company's liability, but in no event prior to the
Effective Date.
B. In no event shall reinsurance be in force and binding if the issuance and
delivery of such insurance constituted the doing of business in a jurisdiction
in which the Ceding Company knowingly was not properly licensed.
C. The Reinsurer's liability for coverage under the Ceding Company's
conditional receipt or temporary insurance agreement, whichever the Ceding
Company uses (a sample copy of which is included as Exhibit VI and, for the
purpose of this Section D, hereinafter called the "Insurance Receipt"), is
limited to the amount the Reinsurer would reinsure under this Agreement on an
Automatic Reinsurance basis (whether the risk qualifies for Automatic
Reinsurance or not) if the coverage under the policy applied for would have been
approved and issued, as limited by the terms of the Insurance Receipt, provided:
1. The Ceding Company has followed its normal cash-with-application procedures
for such coverage; and
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2. The Ceding Company's original underwriting assessment for the risk was not a
decline (if it was a decline, the Reinsurer would have no liability for such
coverage); and
3. There is no coverage in effect on the life in the Automatic Pool through any
other Insurance Receipt having an effective date preceding, or the same as, the
effective date of such coverage; and
4. The Ceding Company has not yet accepted any final underwriting offer(s) for
facultative reinsurance on the risk.
The Reinsurer's liability for coverage under the Insurance Receipt shall
terminate simultaneously with the termination of the Ceding Company's liability
under the Insurance Receipt.
D. The Reinsurer's liability for reinsurance on each risk will terminate when
the Ceding Company's liability terminates, unless it terminates earlier as
specified otherwise in this Agreement.
E. The liability of each reinsurer in the Automatic Pool shall be separate and
not joint with the other pool reinsurers. In no way will the liability of the
Reinsurer be increased by reason of the inability of the Ceding Company to
collect from any other reinsurers, whether specific or general, any amounts
which may be due from them, whether such inability arises from insolvency of
such other reinsurers or otherwise.
ARTICLE V
UNDERWRITING REVIEW
A. Purpose of Underwriting Review
For new business written by the Ceding Company that meets the requirements for
Automatic Reinsurance, the Ceding Company intends to underwrite applications for
such business as if the business were to be fully retained by the Ceding
Company. Such business shall be underwritten according to the underwriting
practices and guidelines described in Schedules C, D, or E, as applicable.
The underwriting practices and professional judgment used by the Ceding Company
in arriving at a risk assessment may not agree entirely with the underwriting
practices customarily used by, or the professional judgment of, the Reinsurer
under similar circumstances.
It is the purpose of this review to:
1. Afford the Reinsurer a reasonable period of time to review the underwriting
practices used, and risk assessments made, by the Ceding Company on
automatically reinsured business; and
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2. Settle on a risk assessment for a case that is agreeable between the Parties
and that shall be used to determine the Reinsurance Premiums for the risk from
the beginning of the reinsurance liability under this Agreement for any such
case reviewed by the Reinsurer within that period of time where the underwriting
practices used or risk assessment made by the Ceding Company differ materially
from the opinion of the Reinsurer.
It is NOT the purpose of this review, nor is it within the authority of the
Reinsurer under this Agreement, to deny reinsurance coverage due to a difference
of opinion over the risk assessment on a policy application for business
reinsured under this Agreement that is written in accordance with the Ceding
Company's standard underwriting practices and guidelines or under the terms of
one of the special underwriting programs described in Schedule C or Schedule D.
B. Underwriting Review Process
1. This review shall only be available to the Reinsurer during the first sixty
(60) months following the issue date of any risk automatically reinsured under
this Agreement.
2. For any risk reviewed during this period where the Reinsurer's opinion
differs materially from that of the Ceding Company, the Parties shall work
together in good faith to develop a mutually agreeable risk assessment to be
used to calculate the Reinsurance Premiums for that risk from the beginning of
the Reinsurer's liability for that risk under this Agreement.
3. For any risk reviewed during this period where the Parties cannot mutually
agree on a risk assessment within a reasonable time period, the Parties shall
submit the risk for dispute resolution under Article XVIII.
4. This review shall not be available and the Reinsurer may not challenge any
risk assessments made by the Ceding Company after this sixty (60) month period
except as described below.
5. Any unintentional or accidental failure of the Ceding Company to adhere to
its standard underwriting practices and guidelines in the assessment of risks,
resulting from an oversight or clerical error by the Ceding Company, will not be
grounds for denying reinsurance coverage on a risk if the effect of the failure
is not material. Grossly negligent or deliberate acts of the Ceding Company,
recurring errors, or errors that are part of a pattern evidencing a disregard
for the Ceding Company's standard underwriting practices and guidelines would be
considered grounds for denying reinsurance coverage on a risk. The Reinsurer's
right to deny reinsurance coverage as described above shall not be limited to
the sixty (60) month period as described in paragraph B.1, above.
C. Ceding Company's Responsibilities to the Reinsurer for Underwriting Review
Upon request by the Reinsurer, the Ceding Company shall provide to the Reinsurer
all information in its possession, that was used in underwriting and assessing
the risks for each qualifying case identified for review under this Article.
This information to be provided to the Reinsurer may be transmitted using any
medium agreed upon by the Parties; a valid copy of the information shall satisfy
this purpose.
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This information shall be delivered to the Reinsurer within thirty (30) calendar
days after the Ceding Company receives the request for the information, unless
an alternative delivery period is agreed upon by the Parties.
ARTICLE VI
REINSURANCE PREMIUMS
A. Computation
Reinsurance Premiums under this Agreement shall be calculated as described in
Exhibit I.
B. Timing
Reinsurance Premiums are payable each month of coverage for reinsured risks in
force at the end of the preceding month (monthly in advance). For newly
reinsured risks with a reinsurance effective date during the current month, the
Reinsurance Premium for the first month of coverage will be payable in the next
following monthly statement.
C. Extended Policy Maturity
If the maturity date of a reinsured policy is extended in accordance with the
policy, the death benefit under the policy will continue to be payable as
provided in the policy, and the reinsurance under this Agreement will remain in
effect on the same terms as before the policy's original maturity date.
D. Unearned Reinsurance Premiums
The Reinsurer will refund to the Ceding Company all unearned Reinsurance
Premiums, less applicable allowances, arising from policy conversions, other
changes, and terminations described in Article X. If termination is due to
lapse, surrender or conversion, unearned Reinsurance Premium will be determined
as of the effective date of termination. If termination is due to death,
unearned Reinsurance Premium will be determined as of the date of death.
E. Guaranteed Rates
Although the Reinsurer anticipates continuing to accept Reinsurance Premium at
the current rate level, the Reinsurer reserves the right to increase the YRT
Reinsurance Rate Factors, as set forth in Exhibit IV, for any Plan(s) of
Insurance when there is a material shift in the demographics or the Reinsurer's
expectations of future mortality results on such Plan(s) of Insurance warrant.
The Reinsurer shall provide at least one hundred twenty (120) days written
notice of any such change. However, in no event will the increased Base YRT
Reinsurance Premium Rate, as defined in Exhibit I, for standard risks exceed the
applicable annual rates in the Valuation Mortality Table specified in Schedule A
for such Plan(s) of Insurance.
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The Reinsurer and the Ceding Company shall then endeavor in good faith to
mutually agree on the amount of rate increase that shall apply to such Plan(s)
of Insurance. If the Parties cannot agree on the amount of such rate increase
for such Plan(s) of Insurance, then the Ceding Company reserves the right to
recapture the risks associated with such Plan(s) of Insurance without fee, as of
the effective date of the rate increase. Written notice of such recapture shall
be provided to the Reinsurer no later than thirty (30) days following the
effective date of the rate increase.
F. Payment of Reinsurance Premiums
The Net Reinsurance Premium Balance payable each month equals the sum of the
Reinsurance Premiums described above in Section A, minus the sum of any unearned
Reinsurance Premiums described above in Section D. For any month, this net
balance may be positive (greater than zero) or negative.
Any positive Net Reinsurance Premium Balance for a month is payable to the
Reinsurer. The Ceding Company shall forward this balance to the Reinsurer by its
due date, which is thirty (30) days after the close of the calendar month.
The absolute value of any negative Net Reinsurance Premium Balance for a month
is payable to the Ceding Company. The Reinsurer shall forward this balance to
the Ceding Company by its due date, which is thirty (30) days after the Ceding
Company submits the statement for that month.
G. Overpayment of Reinsurance Premiums
If the Ceding Company overpays a Net Reinsurance Premium Balance and the
Reinsurer accepts the overpayment, the Reinsurer's acceptance of the overpayment
will not constitute or create an additional reinsurance liability, and it will
not result in any additional reinsurance. Instead, the Reinsurer shall be liable
to the Ceding Company for a credit in the amount of the overpayment without
interest.
H. Underpayment of Reinsurance Premiums
If the Ceding Company fails to make a full payment of the Net Reinsurance
Premium Balance, due to an Error defined in Article IX, the amount of
reinsurance coverage provided by the Reinsurer on the risks related to such
underpayment shall not be reduced. However, once the underpayment is discovered
by one Party and the other Party is notified of the underpayment, the Ceding
Company shall promptly pay to the Reinsurer the difference between the full
payment amount and the amount actually paid. If payment of the full amount of
the underpayment is not made within sixty (60) days after the discovery of the
underpayment, the underpayment shall be treated as delinquent premium and
subject to the conditions listed below in Section I.
The Reinsurer reserves the right to charge the Ceding Company interest on the
amount of the underpayment, even if it becomes delinquent as described below in
Section I. Such interest will accrue from the due date of the underpaid Net
Reinsurance Premium Balance and be computed as described in Section XXII.P.
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I. Termination of Reinsurance for Nonpayment of Reinsurance Premiums
If undisputed Reinsurance Premiums for one or more reinsured risks are
delinquent, the Reinsurer has the right to terminate its reinsurance liability
on those risks by giving the Ceding Company ninety (90) days advance written
notice of termination. This notice shall list the risks and the amount of the
delinquent Reinsurance Premium for each risk. If the delinquent Reinsurance
Premiums have not been paid to the Reinsurer as of the end of such notice
period, the Reinsurer's liability will terminate for the risks described in the
termination notice at the end of such notice period.
If the Reinsurer's liability on one or more of the Ceding Company's risks is
terminated because of nonpayment of Reinsurance Premiums, the Ceding Company
will continue to be liable to the Reinsurer after the termination for all unpaid
Reinsurance Premiums earned up to the date of such termination.
The Ceding Company shall not force termination under the provisions of this
Section I solely to avoid the recapture requirements or to transfer the block of
business reinsured to another reinsurer.
J. Reinstatement of Reinsurance Terminated for Nonpayment of Reinsurance
Premiums
The Ceding Company may reinstate reinsurance on risks terminated in accordance
with Section I within sixty (60) days after the effective date of termination by
paying the unpaid Reinsurance Premiums for the risks inforce prior to the
termination. However, the Reinsurer will not be liable for any claim incurred
between the date of termination and the date of reinstatement. The effective
date of reinstatement will be the date the required unpaid Reinsurance Premiums
are received by the Reinsurer.
ARTICLE VII
REINSURANCE REPORTING
A. Accounting Statements and Other Reports
Within thirty (30) days after the close of each calendar month, the Ceding
Company shall provide the Reinsurer an accounting statement. The Ceding Company
shall also provide the Reinsurer with additional reports as provided in Exhibit
VII.
For Automatic Reinsurance becoming effective during the calendar month, the
Ceding Company will notify the Reinsurer of such new reinsurance business in the
succeeding monthly report. However, the first three monthly reports under this
Agreement will be sent within one hundred twenty (120) days after the due date
of the first monthly report.
The Ceding Company may provide an estimate Net Amount at Risk for new
reinsurance business in the first monthly report in which such business appears.
In the event that the Ceding Company provides an estimated Net Amount at Risk,
it shall provide an actual Net Amount at Risk in subsequent monthly reports.
Additional reports reasonably requested by a Party will be provided by the other
Party in a timely manner.
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B. Reporting Format and Medium
The information to be provided by the Ceding Company in these monthly reports to
the Reinsurer shall be in a format, and transmitted using a medium, mutually
agreeable to the Parties. As of the Effective Date of this Agreement, the
information to be provided by the Ceding Company in these monthly reports to the
Reinsurer shall be on a self-administered reporting basis as set out in Exhibit
VII.
C. Reporting Delays and Changes
The Ceding Company shall inform the Reinsurer of any material delays or
significant changes in the information provided, particularly in the file layout
and in data values, as set out in Exhibit VII. It is the expectation of the
Parties that the structure of the in-force file is stable from period to period.
ARTICLE VIII
CREDIT FOR REINSURANCE
A. Reinsurance Credit
The Parties intend that the Ceding Company be entitled to take credit for the
reinsurance ceded under this Agreement in its statutory financial statements
filed in all jurisdictions in which the Ceding Company is licensed, accredited,
or otherwise authorized to transact business ("Reinsurance Credit"). The Parties
shall use best efforts to ensure that such entitlement shall become and remain
available to the Ceding Company throughout the duration of this Agreement.
The amount of the Reinsurance Credit shall be determined by the Ceding Company
and shall include mortality risk reserves, unearned premium reserves, and
reinsurance recoverables on paid and unpaid losses for the reinsurance ceded
under this Agreement. Such amounts shall be calculated in accordance with
applicable accounting and valuation laws, regulations and actuarial guidelines
to which the Ceding Company is subject on each valuation date and shall take
into account the terms of this Agreement.
B. Reinsurer Representation
The Reinsurer represents to the Ceding Company that it was properly licensed or
accredited in all jurisdictions in which the Ceding Company is licensed,
accredited, or otherwise authorized to transact insurance business, so that the
Reinsurance Credit shall be allowed. The Reinsurer shall notify the Ceding
Company, as a material communication under Article XXIII, immediately upon
learning of any change in, or loss of, such licensing or accreditation.
C. Security for Reinsurance Credit
In the event the Ceding Company reasonably believes it will not be entitled to
take Reinsurance Credit as a result of a change to the Reinsurer's licensing or
accreditation, the Reinsurer shall establish and maintain the security, at its
sole expense, that is needed to allow the Ceding Company to continue to take
Reinsurance Credit and that meets all applicable laws and regulations regarding
Reinsurance Credit.
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In the event the Ceding Company reasonably believes it will not be entitled to
take Reinsurance Credit as a result of a regulatory change or interpretation
outside of the Reinsurer's control, the Reinsurer shall establish and maintain
the security that is needed to allow the Ceding Company to continue to take
Reinsurance Credit and that meets all applicable laws and regulations regarding
Reinsurance Credit. In this event, the expense of establishing and maintaining
the security shall be shared equally by the Ceding Company and the Reinsurer.
If such security is required in either event, the Reinsurer shall establish a
trust or a letter of credit, satisfactory to the Ceding Company, in a form that
meets all applicable standards of law and regulation to entitle the Ceding
Company to claim such Reinsurance Credit. However, the Reinsurer may propose an
alternative option under which Reinsurance Credit shall be allowed the Ceding
Company, at the sole discretion and approval of the Ceding Company.
The Parties shall amend this Agreement, in accordance with Section I.B, to
reflect the establishment of such security or such approved alternative option
so that the Ceding Company shall continue to be entitled to take such
Reinsurance Credit.
If the Reinsurer fails to provide the Ceding Company with such security or
approved alternative option to continue to be entitled to take such Reinsurance
Credit for the business covered under this Agreement, the Ceding Company may
recapture the business covered under this Agreement, subject to the terms of
Article XVI. In no event shall recapture be construed to be the exclusive remedy
of the Ceding Company.
ARTICLE IX
ERRORS
Errors, omissions, oversights, delays or misunderstandings in the administration
of this Agreement (collectively "Error") by either Party, shall not invalidate
the reinsurance hereunder. As soon as reasonably possible after discovery,
notice shall be provided, the Error shall be rectified and both Parties shall be
restored, to the extent possible, to the position they would have occupied had
the Error not occurred.
However, if it is not reasonably possible to restore each Party to the position
it would have occupied if not for the Error, the Parties will endeavor in good
faith to promptly resolve the situation in a manner that is fair and reasonable,
and most closely approximates the intent of the Parties as evidenced by this
Agreement.
Without limiting the procedures outlined below for Late Reported Risks, if
either Party discovers that the Ceding Company has failed to correctly report
ceded reinsurance as provided in this Agreement, the Reinsurer may require the
Ceding Company to audit its records for other similar Errors. The Ceding Company
is expected to correct such Errors and to take reasonable actions to ensure that
similar Errors do not recur. If the Reinsurer receives no evidence that the
Ceding Company has taken reasonable actions to remedy such a situation, then the
Reinsurer reserves the right to limit its liability on risks not correctly
reported by providing thirty (30) days advance written notice to the Ceding
Company of its intention to limit its liability on such risks.
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The first paragraph of this Errors article shall not apply to the following
circumstances:
(1) Any Late Reported Risks. For the purposes of this Article IX, a "Late
Reported Risk" is a risk reported to the Reinsurer more than two (2) years after
its effective date. The Reinsurer will not automatically accept liability for
any Late Reported Risks. The Ceding Company shall submit to the Reinsurer, for
approval, reporting information about any Late Reported Risks it wishes to be
ceded under this Agreement. The process for Late Reported Risks will be as
follows:
(a) The Reinsurer will notify the Ceding Company, within a reasonable
time period after submission of the reporting information about any
Late Reported Risks, whether it is able to accept such risks based
on criteria such as capacity.
(b) In the event the Reinsurer is able to accept such Late Reported
Risks, the Ceding Company agrees to pay all unpaid Reinsurance
Premiums on the next premium accounting statement upon the acceptance
of the risk by the Reinsurer. The Reinsurer reserves the right to
charge interest on such Reinsurance Premiums, accruing from their
respective due dates to the date of payment, computed as described in
Section XXII.P.
(c) If the Reinsurer is not able to accept such Late Reported Risks,
such risks will not be covered by the terms of this Agreement and no
liability will attach to the Reinsurer.
(2) Any Late Reported Terminations. For the purposes of this Article IX, a
"Late Reported Termination" is a termination of life reinsurance coverage (other
than by death) reported more than two (2) years after the termination date of
the covered risk. The Reinsurer will reimburse Reinsurance Premiums on Late
Reported Terminations for only the last two (2) years.
(3) Any intentional failure to comply with the terms of this Agreement which
can be shown to be the result of grossly negligent or deliberate acts or
omissions by the Ceding Company. The Reinsurer shall not be liable for any claim
amounts from policies ceded as a result of such acts or omissions.
(4) Any claim made for a policy where the Ceding Company failed to adhere to
its standard underwriting practices and guidelines in effect at the time of the
underwriting of the policy and the effect of such failure is material. The
Reinsurer may support such claims at its discretion.
ARTICLE X
POLICY CONVERSIONS, OTHER CHANGES, AND TERMINATIONS
A. Conversions
A conversion is a policyholder's exercise of a contractual right to replace
in-force coverage with a new permanent policy without evidence of insurability.
Conversions from a policy reinsured under this Agreement will continue to be
reinsured under this Agreement as follows:
1. The converted coverage under the new policy will be reinsured with the
Reinsurer in the same proportion as was determined for the in-force coverage
converted; and
2. Reinsurance Premiums for such converted coverage shall be calculated on a
point-in-scale basis.
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If the new policy was converted under the Conversion Option Rider from either
(a) two single life policies reinsured under this Agreement; or (b) one single
life policy reinsured under this Agreement and one newly underwritten life, to a
last survivor policy, Reinsurance Premiums for both lives shall be calculated on
a point-in-scale basis. The Reinsurance Premiums for both lives shall be
calculated using the tables of Annual Rates per $1,000 of Reinsured Net Amount
at Risk and table of YRT Reinsurance Rate Factors applicable to the earliest
original coverage in accordance with the procedures set out in Exhibit I.
Conversions from a policy not reinsured under this Agreement shall not be
reinsured under this Agreement.
B. Increases and Decreases in Policy Face Amount
1. If the face amount of a policy reinsured under this Agreement increases and:
a. The increase is subject to full underwriting, then (i) the
provisions of Article III shall apply to the increase in reinsurance
and (ii) the increase is underwritten according to the Ceding
Company's underwriting practices and guidelines (including preferred
criteria, age and amount requirements and underwriting manual
assessments) that were approved in writing by the Reinsurer in
accordance with Section XXII.L. Reinsurance Premiums for the
increase shall be based on new-business rates.
b. The increase is not subject to full underwriting, the Reinsurer will
accept the increase, provided that the Ceding Company underwrote the
full face amount (including all scheduled increases) in accordance
with the terms of this Agreement.
Reinsurance Premiums for increases not subject to full underwriting
shall be calculated on a point-in-scale basis.
For increases in accordance with B.1.b, the Ceding Company's retention
and the amount of risk ceded to the Reinsurer shall be determined for
the increase at the time the increase goes into effect in accordance
with Schedule B.
2. If the face amount of a policy reinsured under this Agreement decreases and:
a. If the face amount of a policy that was previously increased is
subsequently decreased, the decrease will be applied first to the
increase with the latest effective date, and then to the increase
with the next earlier effective date, and so forth as necessary,
until applying any remaining decrease to the initial face amount of
the policy.
The Ceding Company's retention and the amount of risk ceded to the Reinsurer
shall be determined at the time the decrease goes into effect, in accordance
with Schedule B.
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C. Policy Exchanges and Other Changes
A policy exchange is a new policy replacing an existing policy where the new
policy is not fully underwritten. Exchanges from one single life policy
reinsured under this Agreement to a different single life policy will be
reinsured on a point-in-scale basis. Likewise, exchanges from one last survivor
policy reinsured under this Agreement to a different last survivor policy will
be reinsured on a point-in-scale basis. Exchanges from a last survivor policy
reinsured under this Agreement with the Last Survivor Exchange Option Rider or
Twenty-Four (24) Month Exchange Rider to two single life policies will be
reinsured at the applicable single life point-in-scale rates. For each new
policy after the exchange, the insurance will continue to be reinsured by the
Reinsurer in the same proportions as set at issue of the original coverage.
If there is a contractual change in a policy reinsured under this Agreement that
is not subject to full underwriting, other than the changes described above in
Sections A and B, the insurance shall continue to be reinsured with the
Reinsurer in the same proportions as the original coverage and Reinsurance
Premiums for contractual changes shall be calculated on a point-in-scale basis.
The Ceding Company shall notify the Reinsurer of any such changes in policies
reinsured under this Agreement in its monthly reinsurance reports.
Exchanges made from a policy not reinsured under this Agreement shall not be
reinsured under this Agreement.
D. Policy Terminations and Lapses
If a policy reinsured under this Agreement terminates, the reinsurance for the
risk will terminate as of the effective date of policy termination. For a policy
terminated due to the expiry of any grace period for an unpaid amount, the
effective date of termination for such policy will be the date such unpaid
amount was first due.
If a policy reinsured under this Agreement lapses to extended term insurance
under the terms of that policy, the corresponding reinsurance on the reinsured
policy will continue on the same basis as the original reinsurance until the
expiry of the extended term period.
If a policy reinsured under this Agreement lapses to reduced paid-up insurance
under the terms of that policy, the amount of the corresponding reinsurance on
the reinsured policy will be reduced according to the terms of Section B.2.
If the Ceding Company allows a policy reinsured under this Agreement to remain
in force under its automatic premium loan provisions, the corresponding
reinsurance on the reinsured policy will continue unchanged and in force as long
as such provisions remain in effect, except as otherwise provided in this
Agreement.
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E. Reduction in Retained Coverage on a Life
If any portion of the aggregate amount of insurance retained by the Ceding
Company or its affiliates on an individual life reduces or terminates, the
Ceding Company or its affiliates will recalculate its retention on any remaining
risk(s) in force on that life. The Ceding Company or its affiliates will not be
required to retain an amount in excess of its retention limit for the age,
mortality rating, and risk classification based on the applicable retention
limit that was in effect at the time of issue for any risk. Unless provided for
otherwise in the applicable reinsurance agreements, the Ceding Company or its
affiliates will first recalculate the retention on the risk(s) having the same
mortality rating as the terminated risk(s). Order of recalculation will
secondarily be determined by effective date of the risk, oldest first.
F. Multiple Reinsurers
If reinsurance of a risk is shared by more than one reinsurer, the Reinsurer's
percentage of any increased or reduced reinsurance will be the same as its
initial percentage of the reinsurance for that risk unless specified otherwise
in Schedule B or agreed upon by the Reinsurer.
G. Mortality Rating Changes
If the Ceding Company wishes to reduce the mortality rating or otherwise improve
the risk class, the Reinsurer shall accept this change if the change qualifies
under the underwriting practices and guidelines described in Schedules C, D, or
E, as applicable.
H. Rescission of Policy Coverage Prior to Death Claim
If a misrepresentation, misstatement, or omission on an application results in
the Ceding Company's rescission of coverage, the Reinsurer shall refund to the
Ceding Company any Reinsurance Premiums it received on that coverage. This
refund shall be in lieu of any and all other reinsurance benefits payable on
that coverage under this Agreement. The Reinsurer shall also reimburse the
Ceding Company for its proportionate share of any non-routine expenses incurred
in connection with the rescission including the costs of investigations and of
obtaining financial and medical reports.
In the event the rescission is challenged by legal action, the Reinsurer shall
participate in the associated legal and investigation expenses. This paragraph
shall not apply to expenses relating to rescissions of policies which are
determined to be stranger-owned life insurance policies or investor-owned life
insurance policies.
If a rescission of policy coverage is reversed and the policy coverage is
restored to in-force status, any related reinsurance coverage under this
Agreement shall also be restored upon the Ceding Company's payment to the
Reinsurer of all applicable Reinsurance Premiums.
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ARTICLE XI
POLICY REINSTATEMENT
If a policy reinsured under this Agreement lapses or terminates, and is later
reinstated under the Ceding Company's terms and rules, the Reinsurer will
reinstate the reinsurance as follows:
A. Procedure to Reinstate Reinsurance
For policies reinsured under this Agreement that are reinstated by the Ceding
Company, the reinsurance cession shall be automatically reinstated.
The Reinsurer reserves the right to request any available Underwriting
Information on any reinstatement.
B. Cost to Reinstate Reinsurance
Upon reinstatement of reinsurance under this Article, the Ceding Company shall
pay the Reinsurer Reinsurance Premiums in the same manner as the Ceding Company
received corresponding policy charges under the policy for the period of lapse.
The Reinsurer reserves the right to charge the Ceding Company interest on such
Reinsurance Premiums in accordance with Section XXII.P.
The Reinsurer will have no liability for any claims incurred between the date of
termination and the date of reinstatement of the reinsurance.
C. Nonforfeiture Reinsurance Termination
If the Ceding Company reinstates a policy that is reinsured while under an
extended term or reduced paid-up nonforfeiture option, then reinsurance under
such nonforfeiture option will terminate upon policy reinstatement.
ARTICLE XII
CLAIMS
A. Liability for Claims
The Ceding Company is responsible for the settlement of claims on policies
reinsured under this Agreement. It is the Ceding Company's sole decision to
determine whether a claim is payable under a policy. The Ceding Company shall
operate in good faith and adjudicate claims on policies reinsured under this
Agreement as if there were no reinsurance. All claim settlements on policies
reinsured hereunder will be subject to the terms and conditions of the
particular policy, the applicable statutory requirements, and the standard
settlement practices of the Ceding Company. The Ceding Company's decision to pay
a claim, provided the Ceding Company has complied with the terms of this
Agreement, shall be binding on the Reinsurer, and the Reinsurer shall be liable
for its portion of the reinsurance on that risk, as described in Schedule B.
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B. Notification of Claims
1. The Ceding Company shall promptly notify the Reinsurer when it is advised of
a death claim on coverage reinsured under this Agreement.
2. The Ceding Company shall furnish the Reinsurer with all information it has
pertaining to the issuance of the coverage and to the claim for claims incurred
during the contestable period where the policy(s) was ceded on an automatic
basis and the total Reinsured Net Amount at Risk on the life exceeds
The Reinsurer shall have six (6) business days to provide the Ceding Company
with any information it has on such claim. The Ceding Company shall consider all
information in determining its claim liability in accordance with Section A. The
Ceding Company's failure to notify the Reinsurer of such claims shall not
invalidate the reinsurance, but instead shall be treated in accordance with
Article IX.
C. Claim Payment
1. Proofs
If a death claim is made under a risk reinsured under this Agreement, the Ceding
Company shall provide the Reinsurer with copies of proof(s) of death of the
insured(s), proof of claim payment, and the claimant's statement (collectively
"Proofs").
For Last Survivor risks, when the first death occurs within the contestable
period, the Ceding Company shall submit any claims investigation information to
the Reinsurer.
For any claim on a risk reinsured under this Agreement, copies of claim files,
underwriting files and other documents relating to a policy under this Agreement
shall be furnished to the Reinsurer upon written request.
2. Payment of Reinsurance Proceeds
The Reinsurer shall pay the Ceding Company the Reinsured Net Amount at Risk,
defined in Schedule B, on claims for which it is liable under this Agreement.
The due date for such payment is the date fifteen (15) business days after the
date that the Reinsurer has received the Proofs and all outstanding documents
and all issues have been resolved.
The Reinsurer shall also reimburse the Ceding Company for its proportionate
share of non-routine claims expenses (defined below in Section G) and any
interest paid by the Ceding Company on such claims, such proportion based on the
relationship of the Reinsured Net Amount at Risk to the Total Net Amount at Risk
of the coverage, as defined in Schedule B. Interest paid by the Ceding Company
on such claims shall be in accordance with the policy provisions and applicable
state requirements.
Payment of reinsurance proceeds will be made to the Ceding Company in a single
sum, regardless of the Ceding Company's mode of settlement with the payee under
the policy.
3. Claim Balances in Default
If the Reinsurer is delinquent by more than thirty (30) days on an undisputed
amount due to the Ceding Company relating to a claim:
a. The Ceding Company shall have the right to charge interest on
delinquent amounts in accordance with Section XXII.P;
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b. The Ceding Company shall have the right to offset such amount, including
any accrued interest charged by the Ceding Company, from any amount due
the Reinsurer in accordance with Article XVII; and
c. To the extent there is an insufficient balance from which to offset
such amounts, the Ceding Company shall have the right to recapture the
remaining reinsurance under this Agreement, as described in Article
XVI, provided the Ceding Company has given the Reinsurer ninety (90)
days advance written notice of its intent to recapture and the
Reinsurer has failed to pay the net amount due, including any accrued
interest charged by the Ceding Company, by the end of such notice
period. In no event shall recapture be construed to be the exclusive
remedy of the Ceding Company.
D. Contested Claims
1. The Ceding Company shall promptly notify the Reinsurer of its intent to
deny, reduce, compromise, contest, litigate, or assert defenses against
(collectively, "Contest") a claim on a risk reinsured under this Agreement via
email to xxxxx_xxxxxx@xxxxxxxxxx.xxx or as otherwise provided by the Reinsurer.
The Ceding Company shall also furnish all information material to such action.
Recognizing the urgent nature of these communications, within six (6) business
days of receipt of such information (the "Contested Claim Review Period"), the
Reinsurer shall notify the Ceding Company in writing of the Reinsurer's decision
whether or not it shall participate in the Contest. The Reinsurer may extend the
Contested Claim Review Period by two (2) additional business days by written
notice to the Ceding Company, if such notice is provided by the end of the
initial five-day period. If the Reinsurer does not respond to the Ceding Company
within the Contested Claim Review Period, the Reinsurer will be deemed to have
elected to participate in the Contest, and any settlement made by the Ceding
Company shall be binding on the Reinsurer.
2. If the Reinsurer elects to participate in the Contest, then:
a. The Ceding Company will promptly advise the Reinsurer of all
significant developments, including notice of legal proceedings
initiated in connection with the contested claim until the claim is
resolved;
b. The Reinsurer shall pay its proportionate share of any settlement of
the claim, such proportion based on the relationship of the Reinsured
Net Amount at Risk to the Total Net Amount at Risk of the coverage,
as defined in Schedule B, and in accordance with Article XIII; and
c. The Reinsurer shall also share in the non-routine claims expenses
(defined below in Section G) and Extra-Contractual Obligations, as
defined in Article XIII, associated with the Contest in the same
proportion as stated above in Paragraph b.
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Notwithstanding the above, if, at any point in time, the Reinsurer disagrees
with the Ceding Company's course of action, the Reinsurer may opt out of the
Contest by paying the Ceding Company the Reinsured Net Amount at Risk and its
proportionate share of non-routine claims expenses (defined in Section G)
incurred to the date on which the Reinsurer opts out in the same proportion as
stated above in b as if there were no Contest. However, once the Reinsurer has
participated in the Contest, the Reinsurer shall remain liable for its share of
any Extra Contractual Obligations in accordance with Article XIII that arise
from actions taken prior to the date the Reinsurer opts out in the same
proportion as stated above in Paragraph b. Any dispute over whether
Extra-Contractual Obligations arose from agreed upon actions taken prior to the
date the Reinsurer opts out shall be subject to dispute resolution in accordance
with this Agreement.
3. If the Reinsurer declines to participate in the Contest of the claim, then:
a. The Reinsurer shall release all of its liability for the claim by
paying the Ceding Company the Reinsured Net Amount at Risk and its
proportionate share of non-routine claims expenses (defined below in
Section G) incurred to the date on which the Reinsurer notifies the
Ceding Company that it declines to be a party to the action, in the
same proportion as stated above in Paragraph 2.b, as though there
were no Contest; and
b. The Reinsurer shall not share in any subsequent increase or decrease
in liability for the claim.
4. In the event the Ceding Company does not notify the Reinsurer of a Contest
on a claim, in accordance with paragraph 1 above, the Reinsurer shall not be
liable for non-routine claims expenses, defined below in Section G, or
Extra-Contractual Obligations, as defined in Article XIII, associated with the
Contest, but will remain liable for its proportionate share of the lesser of (i)
the contractual benefits that would have been payable had there been no Contest
or (ii) the actual amounts payable as a result of the Contest.
5. The Reinsurer will not recommend to the Ceding Company to contest a claim.
E. Misstatement of Age or Sex
If the amount of insurance provided by the policy or policies reinsured under
this Agreement is increased or decreased because of misstatement of age or sex
that is established after the death of the insured (or the second death in the
case of a last survivor policy), the Reinsurer will share with the Ceding
Company in this increase or decrease of insurance in proportion to the
relationship of the Reinsured Net Amount at Risk to the Total Net Amount at Risk
of the coverage. The amount will be adjusted from the inception of the policy,
and any difference in amounts due between the Parties under this Agreement will
be settled without interest.
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F. Return of Premium for Misrepresentations and Suicides
1. If a misrepresentation, misstatement, or omission on an application, or the
death of an insured by suicide, results in the Ceding Company returning the
policy premiums (or monthly deductions) to the policy owner rather than paying
the death benefits under a risk reinsured under this Agreement, the Reinsurer
shall refund to the Ceding Company all of the Reinsurance Premiums it received
on that coverage without interest. This refund paid by the Reinsurer shall be in
lieu of any and all other reinsurance benefits payable on that risk under this
Agreement.
2. In addition, the Reinsurer shall pay its proportionate share of reasonable
third-party investigation and legal expenses connected with the Ceding Company's
decision to return the policy premiums (or monthly deductions) as described
above in Paragraph F.1. This paragraph shall not apply to expenses relating to
rescissions of policies which are determined to be stranger-owned life insurance
policies or investor-owned life insurance policies.
G. Claims Expenses
1. Routine Claims Expenses
The Ceding Company shall pay routine expenses incurred in connection with
settling claims. These expenses may include the compensation of agents and
employees, and the expense of routine investigations.
2. Non-Routine Claims Expenses
The Reinsurer will participate in non-routine claims expenses, defined as the
expenses incurred by the Ceding Company in connection with the Contest, or
potential Contest, of a claim. These non-routine claims expenses may include
court costs and investigation, autopsy and legal expenses; they would not
include the compensation of salaried officers and employees of the Ceding
Company. However, if the Reinsurer declines to participate in the Contest of a
claim as described above in Paragraph D.3, the Reinsurer will not share in any
non-routine expenses for the claim that are incurred after the date of the
Reinsurer's release.
3. Claims expenses do not include expenses incurred by the Ceding Company as a
result of a dispute or contest arising out of conflicting claims of entitlement
to policy proceeds.
ARTICLE XIII
EXTRA-CONTRACTUAL OBLIGATIONS
The Reinsurer shall not participate in Extra-Contractual Obligations that are
awarded against the Ceding Company as a result of an act, omission, or course of
conduct committed solely by the Ceding Company, its agents, or its
representatives in connection with claims covered under this Agreement.
The Reinsurer will pay its share of Extra-Contractual Obligations, to the extent
permitted by law, if the Reinsurer in writing recommended, consented to, or
explicitly ratified the act or course of conduct of the Ceding Company that
ultimately resulted in the assessment of the Extra-Contractual Obligations.
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In the event there is a dispute as to whether Extra-Contractual Obligations or
any portion thereof resulted from an act or course of conduct recommended,
consented to, or explicitly ratified by the Reinsurer, the matter shall be
subject to dispute resolution in accordance with this Agreement.
For the purposes of this Agreement, "Extra-Contractual Obligations" shall mean
any Punitive Damages, Compensatory Damages, or Statutory Penalties, as defined
below, paid or payable by the Ceding Company as a result of an action arising
under, relating to, or in connection with a Contest:
"Punitive Damages" are those damages awarded as a penalty, the amount of which
is neither governed nor fixed by statute.
"Compensatory Damages" are those amounts awarded to compensate for the actual
damages sustained, and are not awarded as a penalty, nor fixed in amount by
statute.
"Statutory Penalties" are those amounts awarded as a penalty, but are fixed in
amount by statute.
ARTICLE XIV
DAC TAX SECTION 1.848-2(g)(8) ELECTION
The Ceding Company and the Reinsurer jointly agree to the DAC Tax Election
pursuant to Section 1.848-2(g)(8) of the Income Tax Regulations (the "Treasury
Regulations") issued under Section 848 of the Internal Revenue Code of 1986, as
amended (the "Code"). As used in this Article, the terms "net positive
consideration," "specified policy acquisition expenses," and "general deductions
limitation" are defined by reference to Treasury Regulations Section
1.848-2(g)(8) and Code Section 848 as of the Effective Date.
As part of this DAC Tax Election, both Parties agree:
A. That the Party with the net positive consideration for this Agreement for
each taxable year will capitalize specified policy acquisition expenses with
respect to this Agreement without regard to the general deductions limitation of
Code Section 848(c)(1);
B. To exchange information pertaining to the amount of net consideration under
this Agreement each year to ensure consistency; and
C. That the method and timing of the exchange of this information shall be as
follows:
1. The Ceding Company shall submit a schedule to the Reinsurer by May 1 of each
year with its calculation of the net consideration for the preceding calendar
year.
2. The Reinsurer shall, in turn, complete the schedule by indicating acceptance
of the Ceding Company's calculation of net consideration or shall note in
writing any discrepancies, and then return the completed schedule to the Ceding
Company by June 1 of each year.
3. If there are any discrepancies between the Ceding Company's and the
Reinsurer's calculations of net consideration, the Parties shall act in good
faith to resolve these discrepancies in a manner that is acceptable to both
Parties by July 1 of each year.
4. Each Party shall attach the final schedule to its respective U.S. federal
income tax return for each taxable year in which consideration is transferred
under this Agreement. The
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schedule shall identify this Agreement, shall restate the election described in
this Article, and shall be signed by a duly authorized representative of each
Party.
D. This DAC Tax Election shall be effective on the Effective Date of this
Agreement and shall be effective for all years for which this Agreement remains
in effect.
E. The Ceding Company and the Reinsurer each represent and warrant that they
are subject to U.S. taxation under the provisions of either Subchapter L of
Chapter 1 or Subpart F of Part III of Subchapter N of Chapter 1 of the Code.
F. Should the Reinsurer breach the representation and warranty of tax status
set forth in this Article, the Reinsurer agrees to indemnify and hold the Ceding
Company, its directors, officers, employees, agents, and shareholders harmless
from any and all liability, loss, damages, fines, penalties, interest, and
reasonable attorney's fees that the Ceding Company, its directors, officers,
employees, agents, and shareholders may sustain by reason of such breach.
ARTICLE XV
INSOLVENCY
A. Insolvency of the Ceding Company
In the event of the insolvency of the Ceding Company, as determined by the
regulatory agency responsible for such determination, all reinsurance will be
payable by the Reinsurer on the basis of the liability of the Ceding Company
under policies reinsured under this Agreement directly to the liquidator,
receiver or statutory successor of the Ceding Company, without diminution
because of the insolvency of the Ceding Company.
In the event of the insolvency of the Ceding Company, the liquidator, receiver
or statutory successor will give written notice to the Reinsurer of all pending
claims against the Ceding Company on any policy reinsured under this Agreement
within a reasonable time after such claim is filed in the insolvency proceeding.
While a claim is pending, the Reinsurer may investigate and interpose, at its
own expense, in the proceeding where such claim is to be adjudicated, any
defense or defenses which it may deem available to the Ceding Company or its
liquidator, receiver or statutory successor.
The expenses incurred by the Reinsurer will be chargeable, subject to court
approval, against the Ceding Company as part of the expense of the insolvent the
Ceding Company to the extent of a proportionate share of the benefit which may
accrue to the Ceding Company solely as a result of the defense undertaken by the
Reinsurer. Where two or more reinsurers are involved in the same claim and a
majority in interest elect to interpose a defense or defenses to any such claim,
the expense will be apportioned in accordance with the terms of this Agreement
as though such expense had been incurred by the Ceding Company.
B. Insolvency of the Reinsurer
For purposes of this Section B, the Reinsurer shall be deemed insolvent when the
Reinsurer:
a. applies for or is subject to the appointment of a receiver,
rehabilitator, conservator, liquidator, supervisor or statutory
successor of its properties or assets;
b. is adjudicated as bankrupt or insolvent;
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c. files or consents to the filing of a petition in bankruptcy, seeks
reorganization to avoid insolvency or makes formal application for
any bankruptcy, dissolution, liquidation or similar law or statute;
or
d. becomes the subject of an order to rehabilitate or an order to
liquidate as defined by the insurance code of the jurisdiction of the
Reinsurer's domicile.
The effective date of the insolvency shall be the date on which the above
described event occurred.
In the event of Reinsurer's insolvency, the Ceding Company may recapture all of
the inforce policies reinsured under this Agreement by giving written notice to
the Reinsurer of its intent to do so. The effective date of recapture will be no
earlier than the effective date of the Reinsurer's insolvency.
ARTICLE XVI
RECAPTURE OF REINSURED BUSINESS
A. The Ceding Company has the right to recapture risks reinsured under this
Agreement as described under the following circumstances:
(1) If the Ceding Company does not agree with the rate increase on a Plan(s) of
Insurance in accordance with Section VI.E;
(2) If the Reinsurer fails to provide security in accordance with Section
VIII.C;
(3) If the Reinsurer is delinquent on payment of an undisputed net amount due
in accordance with Section XII.C.3; or
(4) If the Reinsurer is deemed insolvent, in accordance with Article XV.
B. In the event recapture is elected based on Section A (1) described above, no
recapture fees are due and no reserves will be transferred.
C. In the event recapture is based on any of the other circumstances described
in Section A above:
1. The Ceding Company and the Reinsurer shall mutually agree upon the recapture
terms -- however, if no such agreement can be reached, an independent actuary
shall be hired to determine the value of the business to be recaptured. The
costs of the independent actuary will be shared equally between the Ceding
Company and the Reinsurer;
2. The value of the business to be recaptured will be based on reasonable
actuarial assumptions as to interest, mortality, and lapse rates; and
3. Other actuarial assumptions and considerations used to value the business to
be recaptured shall include, but not be limited to:
a. Projected future claims costs;
b. Projected future Reinsurance Premiums;
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c. Statutory reserve requirements;
d. NAIC risk based capital and/or other capital measures, which are
reflective of statutory capital levels, that should be maintained for
an insurance company with financial strength ratings comparable to
those of the Ceding Company; and
e. Any other considerations considered relevant by the Parties or the
independent actuary.
ARTICLE XVII
OFFSET
Any undisputed debts or credits, in favor of or against either the Reinsurer or
the Ceding Company, with respect to this Agreement or any other Individual Life
reinsurance agreement between the Parties, are deemed mutual debts or credits
and may be offset, and only the balance will be allowed or paid provided the
Party that seeks to avail itself of this right of offset is not in breach of any
provision of this Agreement.
Individual Life shall be that reporting segment, as defined in the United States
Securities and Exchange Commission Form 10-K and Form 10-Q, for The Hartford
Financial Services Group, Inc., or that reporting segment's successor.
To the extent permitted by applicable law, the right of offset will not be
affected or diminished because of the insolvency of either Party.
ARTICLE XVIII
DISPUTE RESOLUTION
In the event that any dispute between the Parties under this Agreement cannot be
resolved to mutual satisfaction, the dispute will first be subject to good-faith
negotiation, as described below, in an attempt to resolve the dispute without
the need to institute formal arbitration proceedings.
Within ten (10) calendar days after one of the Parties has given the other the
first written notification of the specific dispute, each of the Parties will
appoint a designated officer to attempt to resolve the dispute. The designated
officers will meet at a mutually agreeable location as early as possible and as
often as necessary, in order to discuss the dispute and to negotiate in good
faith without the necessity of any formal arbitration proceedings. During the
negotiation process, all reasonable requests made by one officer to the other
for information will be honored. The designated officers will decide the
specific format for such discussions.
If the designated officers cannot resolve the dispute within thirty (30)
calendar days of their first meeting, both Parties agree that they will submit
the dispute to formal arbitration. However, the Parties may agree in writing to
extend the negotiation period for an additional thirty (30) calendar days.
No later than fifteen (15) calendar days after the final negotiation meeting,
the designated officers taking part in the negotiation will give both Parties
written confirmation that they are unable to resolve the dispute, and that they
recommend establishment of formal arbitration in accordance with Article XIX.
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ARTICLE XIX
ARBITRATION
It is the intention of the Parties that the customs and practices of the life
and health insurance and life and health reinsurance industries will be given
full effect in the operation and interpretation of this Agreement. The Parties
agree to act in all matters with good faith. However, if, in accordance with
Article XVIII, the Parties cannot mutually resolve a dispute that arises out of
or relates to this Agreement, the dispute will be decided through arbitration as
follows:
An arbitration panel consisting of three past or present officers of life and
health insurance or life and health reinsurance companies not affiliated with
either of the Parties in any way will settle the dispute. Each Party will
appoint one arbitrator within thirty (30) calendar days of the demand for formal
arbitration and the two so appointed shall then appoint the umpire. If either
Party refuses or neglects to appoint an arbitrator within the thirty (30)
calendar days, the other Party may appoint the second arbitrator. If the two
arbitrators cannot agree on the umpire within thirty (30) calendar days after
both arbitrators have been appointed, the two arbitrators shall select an umpire
in accordance with paragraph 6.7 of the Procedures for Resolution of U.S.
Insurance and Reinsurance Disputes, dated September 1999.
Within thirty (30) calendar days after the appointment of the umpire, the
arbitration panel shall meet and determine timely periods for briefs, discovery
procedures, and schedules for hearings. The arbitration shall take place at a
location determined by the arbitration panel and, insofar as the arbitration
panel looks to the substantive law, it shall consider the laws of the state of
Connecticut. The arbitration panel shall have the power to set all procedural
rules for the arbitration, including the discretion to make any order with
respect to pleadings, discovery, depositions, scheduling, the hearing, reception
of evidence and any other matter whatsoever relating to the conduct of the
arbitration.
Within sixty (60) calendar days after the beginning of the arbitration
proceedings the arbitration panel will issue a written, reasoned, decision on
the dispute and a statement of any award to be paid as a result. The decision
will be based on the terms and conditions of this Agreement as well as the usual
customs and practices of the insurance and reinsurance industry, rather than on
strict interpretation of the law. The decision will be final and binding on both
Parties and there will be no further appeal. Judgment upon the award may be
entered in any court having jurisdiction thereof.
In the absence of a decision to the contrary by the arbitration panel, each
Party shall bear the expense of its own arbitration activities, including, but
not limited to, its appointed arbitrator's fees, outside attorney fees, witness
fees, expenses incurred in the taking or preservation of testimony, and other
related expenses.
The Parties shall jointly and equally bear the expense of the third arbitrator
and other costs directly attended to the arbitration proceeding, provided that
neither Party's liability for such costs shall ever exceed 50% of the total of
such costs, regardless of the other Party's failure to pay.
The Parties may mutually agree to extend any of the periods shown in this
Article.
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ARTICLE XX
TERMINATION OF THIS AGREEMENT FOR NEW BUSINESS
A. Either Party may terminate this Agreement, as it applies to reinsurance of
new business being issued by the Ceding Company:
(1) immediately upon written notice to the other Party, if that other Party
becomes insolvent as described in Article XV; or
(2) with one hundred twenty (120) days advance written notice to the other
Party; or
(3) with sixty (60) days advance written notice to the other Party, if that
other Party breaches a material term of this Agreement, unless such breach is
substantially cured by the offending Party within such notice period.
B. After termination, the Parties shall remain liable under the terms of this
Agreement for:
(1) reinsurance of policies that becomes effective prior to termination of this
Agreement;
(2) reinsurance of policies with an application date on or before the effective
date of termination; and
(3) reinsurance that becomes effective as a result of coverage changes
described in Article X, with the exception of fully underwritten increases
subject to Section X.B.1.a.
C. The Ceding Company shall continue to cede, and the Reinsurer shall continue
to accept, any new business issued prior to the termination of this Agreement.
ARTICLE XXI
CONFIDENTIALITY
During the course of performance under this Agreement, a Party (the "Owner") or
its agent may make available to the other Party (the "Recipient") or its agent
certain technical materials such as manuals, policyholder lists, data files and
the data contained therein, systems, forms, methods, processes and procedures,
and other information or data (collectively, "Proprietary Information") that is
proprietary or trade secret in nature. Proprietary Information shall
specifically exclude information that was previously known to the Recipient or
that is or was publicly disclosed to the Recipient by any party not known by the
Recipient to be under a duty to retain such information as confidential.
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Each Party acknowledges that all Proprietary Information is offered for the sole
purpose of performing its obligations under this Agreement. Further, each Party
agrees that the Owner is deemed to be the sole owner of such Proprietary
Information and that any use, furnishing, disclosure, dissemination,
publication, or revealing of Proprietary Information in any way by the Recipient
to any person, organization, firm or government agency contrary to applicable
law or to the terms of this Agreement, shall obligate the Recipient to indemnify
and hold the Owner harmless from any damages, litigation, liability, claimed
liability, claims, and expenses -- including reasonable attorneys' fees and
incidental expenses -- resulting from any such improper use, furnishing,
disclosure, or revealing of Owner's Proprietary Information, whether occurring
during the term of this Agreement or thereafter, except to the extent that any
such loss or damage was caused or contributed to by the Owner. The Ceding
Company acknowledges that the Reinsurer can aggregate the Ceding Company's
Proprietary Information with other companies reinsured with the Reinsurer as
long as the data cannot be identified as belonging to the Ceding Company.
The Parties shall hold all Proprietary Information in trust and confidence and
shall use Proprietary Information only for the purposes of this Agreement.
Unless required by applicable law, neither Party shall disclose any Proprietary
Information without the express written consent of the other Party.
Notwithstanding the foregoing, the Parties may disclose Proprietary Information
to their Representatives who need such Proprietary Information to carry out the
purposes for which it was disclosed -- it being understood that the Party
disclosing the Proprietary Information shall inform its Representatives of the
confidential nature of the Proprietary Information, shall cause such
Representatives to observe the terms of this Agreement, and shall be liable to
the Owner for any breach of this Agreement by itself or by any of its
Representatives. The term "Representatives," as used in this Agreement, shall
mean a Party's directors, officers, employees, retrocessionaires, partners,
agents, other controlling persons, and professional advisors, including but not
limited to attorneys, accountants, actuaries, and intermediaries.
In the event the Recipient or its Representative breaches this obligation, the
Owner shall have all rights and remedies available under law and equity,
including the right to protect its Proprietary Information by injunction,
without proving economic loss, which the Parties acknowledge and concede is
appropriate and necessary to protect the value of the Owner's Proprietary
Information.
Notwithstanding anything herein to the contrary, except as reasonably necessary
to comply with applicable securities laws, each Party (and each Representative
of such Party) may consult any tax advisor regarding the U.S. federal income tax
treatment or tax structure of the transaction ("Tax Treatment"), and disclose to
any and all persons, without limitation of any kind, the Tax Treatment and all
materials of any kind (including opinions or other tax analyses) that are
provided to such Party relating to the Tax Treatment. This permission to
disclose the Tax Treatment is limited to any facts relevant to the Tax Treatment
and does not include information relating to the identity of the Parties.
In the event that any Party is served with a subpoena, request for production of
documents, other legal process, or request by regulator, such Party shall
immediately notify, and send a copy of such subpoena, other legal process, or
regulatory request to, the other Party so that the other Party may reasonably
determine whether any of its Proprietary Information may be included in the data
required to be produced. Such other Party may, at its own expense, take such
legal action as it deems necessary to preserve the confidentiality of its
Proprietary Information or may waive its rights to do so.
To the extent possible, Proprietary Information shall be promptly destroyed upon
the termination of this Agreement or, with respect to any particular data files
and data, on such earlier date that the same are no longer required by Recipient
in order to continue to perform its obligations hereunder. The Recipient will
not be obligated to destroy any Proprietary Information that is retained for
back-up or archiving purposes, in accordance with a document retention policy,
or that the Recipient, in the opinion of counsel, is legally compelled to keep
and store.
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The Parties agree to immediately notify each other, in writing, of all
circumstances surrounding any known or potential access to, or possession of,
Proprietary Information by any person other than persons authorized by this
Agreement. Such notice shall be provided as a material communication under
Article XXIII and shall include, but not be limited to, the name and address of
each such unauthorized person.
This Article shall survive the termination of this Agreement.
ARTICLE XXII
GENERAL PROVISIONS
A. Policy Forms
When requested, the Ceding Company will furnish the Reinsurer with a sample copy
of each policy and rider form that applies to the Plans of Insurance to be
reinsured hereunder.
B. Severability
If any provision of this Agreement shall be declared or found to be illegal,
invalid, unenforceable, or void, the Parties shall be relieved of their
obligations under such provision. The validity of the remaining provisions shall
not be affected. To the extent possible, the Parties shall work in good faith to
amend this Agreement to address such provision.
C. Survival
All provisions of this Agreement shall survive its termination to the extent
necessary to carry out the purposes of this Agreement or to ascertain and
enforce the Parties' rights or obligations hereunder existing at the time of its
termination.
D. Non-Waiver
No act, delay, omission, course of dealing or prior transaction by or between
the Parties to this Agreement shall constitute a waiver of any right or remedy
under this Agreement. No waiver of any right or remedy under this Agreement
shall be construed to be a waiver of any other or subsequent right or remedy
under this Agreement.
E. Currency
The Reinsurance Premiums and benefits payable under this Agreement will be
payable in United States Dollars.
F. Definitions of Terms in Policies
Terms that are not defined in this Agreement will have the meaning conferred on
them in the underlying reinsured contracts. Such terms include, but may not be
limited to: Monthly Activity Date, Monthly Deduction Amount, Account Value, and
Policy Protection Account.
G. Governing Law
This Agreement shall be governed by the laws of the State of Connecticut,
exclusive of the rules with respect to conflicts of law.
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H. Assignment and Transfer
The rights, duties and obligations of the Parties under this Agreement shall not
be assigned or transferred, in whole or in part, except as otherwise provided
herein, by either Party without the prior written consent of the other Party.
Such consent shall not be unreasonably withheld. This provision is not intended
to preclude the Reinsurer from retroceding the reinsurance on an indemnity
basis, nor to prevent successors in interest from having rights and obligations
under this Agreement.
I. Execution of Agreement in Counterparts
This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original, but all of which shall constitute one and the same
instrument.
J. Force Majeure
Neither Party shall be liable for any delay or non-performance of any covenant
contained herein nor shall any such delay or non-performance constitute a
default hereunder, or give rise to any liability for damages if such delay or
non-performance is caused by an event of "Force Majeure." As used herein, the
term "Force Majeure" means: an event, explosion, action of the elements, strike
or other labor relations problem; restriction or restraint imposed by law, rule,
or regulation of any public authority, whether federal, state or local, and
whether civil or military; act of any military authority or international
terrorist group; interruption of transportation, communication, or transmission
facilities; or any other cause that is beyond the reasonable control of such
Party and that, by the exercise of reasonable diligence, such Party is unable to
prevent. The existence of any event of Force Majeure shall extend the term of
performance on the part of such Party to complete performance in the exercise of
reasonable diligence after the event of Force Majeure has been removed.
K. Material Compliance Provision
The Parties represent that, to the best of their knowledge, they are in
substantial compliance with all state and federal laws material to the business
reinsured under this Agreement. In the event that either Party is found to be
noncompliant with any law material to this Agreement, this Agreement will remain
in effect and the non-compliant Party will indemnify the other Party for any
direct loss that Party suffers as a result of the noncompliance and, to the
extent practicable, will remedy the noncompliance as soon as possible.
L. Representations and Warranties and Good Faith
The Parties have entered into this Agreement in reliance upon mutual
representations and warranties.
Each Party represents to the other that, as of the Effective Date of this
Agreement, it was solvent on a statutory basis in all states in which it is
licensed to transact business.
The Ceding Company represents and warrants to the Reinsurer that it provided the
Reinsurer with a request for proposal and supporting materials associated
therewith on or about January 21, 2008 (the "Request for Proposal") and
acknowledges that the Reinsurer has relied on these documents and such
representations as well as the Reinsurer's expertise, knowledge, and experience
in the life insurance and life reinsurance industries, in its decision to enter
into this Agreement.
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The Ceding Company represents, to the best of its knowledge, as of the date it
executed this Agreement that:
(1) it was not aware of any errors in the Request for Proposal;
(2) any assumptions made in compiling the Request for Proposal were based upon
informed judgment and were consistent with sound actuarial principles;
(3) all factual information contained in the Request for Proposal was correct,
complete, and accurate in all material respects;
(4) the underwriting, administration and claims practices it employed were
consistent with those of a prudent life insurance company.
In addition, the Parties agree that the principles of good faith traditional to
life reinsurance shall be adhered to in the performance of this Agreement, in
the underwriting and administration of the business reinsured hereunder, and in
their dealing with each other. Pursuant to such principles, the Ceding Company
shall inform the Reinsurer in writing of any material changes in its
underwriting practices and guidelines, administration and/or claims practices
for the Reinsurer's consideration and written approval. In addition, the Ceding
Company shall inform the Reinsurer of any changes in its pricing information
which would, in a prudent actuary's opinion, change the risk characteristics of
the business reinsured hereunder (e.g., changes that would affect the
distribution by risk categories) for the Reinsurer's consideration and written
approval.
If the Reinsurer does not consent to any such changes in writing, the Reinsurer
reserves the right to decline reinsurance coverage on such policies and/or
negotiate a corresponding adjustment of the reinsurance terms and conditions for
the risks reinsured hereunder.
M. Expenses
The Ceding Company shall pay the expense of all medical examinations, inspection
fees, and other charges in connection with the issuance of the insurance
reinsured under this Agreement.
N. Taxes
The Reinsurer will not reimburse the Company for premium taxes or other
insurance-related taxes paid on business reinsured under this Agreement.
O. Inspection of Records
Each Party or its authorized representatives will have the right, at any
reasonable time and upon reasonable advance notice to inspect the other Party's
documents and records that relate to this Agreement and the business that is the
subject matter of this Agreement. The Ceding Company's right of inspection shall
be limited to the Reinsurer's underwriting papers, claims or administration
files related to the business reinsured under this Agreement.
Each Party will cooperate with and facilitate any such inspection, including
providing a reasonable workspace to conduct the inspection. Upon the request of
the inspecting Party, the other Party will make available such officers and
employees as the inspecting Party may reasonably request to provide information
relating to the business reinsured under this Agreement.
All expenses of conducting the inspection will be the sole responsibility of the
inspecting Party.
This Section will survive the termination of this Agreement.
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P. Short-Term Interest
For certain payments as specified in this Agreement that are due from one Party
to the other Party, the Party owed has the right to charge the other Party
interest on those payments. If that right is exercised, such interest will be
computed, from the date the payment is due to the date payment is made, using
the short-term interest method.
Interest under the short-term interest method will accrue at an effective annual
rate set equal to the lesser of (i) a rate equal to the sum of 175 basis points
(1.75%) plus the annualized Three Month London Interbank Offering Rate (LIBOR)
published in the Wall Street Journal (or, if not available, a comparable
publication agreed upon by the Parties) on the due date of the payment, if the
due date is a business day, or if not, on the first business day following the
due date, or (ii) the maximum annual rate allowed by law for this purpose in the
governing-law state specified above in Section G.
The effective annual interest rate to be used under the short-term interest
method for a payment due will be reset every three months after such due date,
as necessary, if the payment accrues interest for a period longer than three
months. If multiple payments are accruing interest under one computation, then
the rate will be reset every three months after the due date of the earliest
such payment, and the reset rate for each successive period shall apply to
accrue interest on all such payments accrued during such period.
Q. OFAC
It is the intention of the Parties to comply with all laws, statutes,
regulations, and rules applicable to the business reinsured under this
Agreement, including, but not limited to, the requirements of the United States
Department of the Treasury's Office of Foreign Asset Control ("OFAC").
For the purposes of this Agreement, a "Prohibited Person" is a Specially
Designated National and Blocked Person as defined by OFAC and a "Sanctioned
Country" is collectively a department, agency, branch, instrumentality,
government-owned entity or representative of the government of a sanctioned or
an embargoed country as identified by OFAC.
Should either Party discover, or otherwise become aware, that a policy, which is
reinsured under this Agreement, insures, is owned by, or in is any way
controlled by a Prohibited Person or has been made in violation of the laws, the
Party who first becomes aware of the violation will notify the other Party and
the Parties will cooperate in order to take all necessary corrective actions.
Such reinsurance cession will be null, void, and of no effect from its
inception, to the same extent as if the policy had never been ceded. In such
event, each Party will be restored to the position it would have occupied if the
violation had not occurred, including the return of any payments received,
unless prohibited by law.
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R. Changes in Retention Limit
If the Ceding Company changes its maximum Retention Limit as shown in Exhibit
II, it shall provide the Reinsurer with written notice of the intended change
thirty (30) days in advance of the effective date. The CCARet%, as shown in
Schedule B, will remain unchanged for new and in force business, unless mutually
agreed.
ARTICLE XXIII
NOTICES AND COMMUNICATIONS
A. Material Communications
For the purpose of this Agreement, "Material Communications" shall be defined as
those communications that are associated with material breach of this Agreement,
termination or recapture of this Agreement, the resolution of disputes by
arbitration, negotiation or court proceedings under this Agreement, a change in
or loss of the Reinsurer's licensing or accreditation, and/or confidentiality
and compliance provisions set forth in this Agreement.
All material communications will be addressed as follows:
If to the Ceding Company: If to the Reinsurer:
Individual Life Director of Reinsurance Reinsurance, S-6
Hartford Life Insurance Companies The Canada Life Assurance Company
000 Xxxxxxxxx Xxxxxx 000 Xxxxxxxxxx Xxxxxx
Xxxxxxxx, XX 00000 Xxxxxxx, XX X0X 0X0
Facsimile: (000) 000-0000 (000) 000-0000
Copies (which shall not constitute Copies (which shall not constitute
notice) to: notice) to:
Corporate Reinsurance Reinsurance Xxxxxx Xxxxxxxxxx, X-0
Hartford Life Insurance Companies The Canada Life Assurance Company
000 Xxxxxxxxx Xxxxxx 000 Xxxxxxxxxx Xxxxxx
Xxxxxxxx, XX 00000 Xxxxxxx, XX X0X 0X0
Facsimile: (000) 000-0000 (000) 000-0000
Reinsurance Counsel Reinsurance Legal Counsel, S-6
Hartford Life Insurance Companies The Canada Life Assurance Company
000 Xxxxxxxxx Xxxxxx 000 Xxxxxxxxxx Xxxxxx
Xxxxxxxx, XX 00000 Xxxxxxx, XX X0X 0X0
Facsimile: (000) 000-0000 (000) 000-0000
or such other address or facsimile number as one Party may provide to the other
Party by routine communication given as described under Section B. The foregoing
shall not preclude the effectiveness of actual written notice given to a Party
at any address or by any means.
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B. Other Communications
All other communications will be sent to the contact either (a) provided by the
receiving party, or (b) identified in the course of routine administration of
this Agreement.
C. Notices
All notices with regard to this Agreement shall be in writing and shall be
deemed to have been duly given (i) on the date when delivered personally; (ii)
on the date sent by facsimile transmission or electronic mail with proof of
delivery; or (iii) on the earlier of the date received and the date three (3)
business days after any such notice was sent by nationally recognized courier or
by first-class U.S. mail, postage prepaid, return receipt requested.
EXECUTION
In witness whereof, the Parties have, by their duly authorized representatives,
executed this Agreement in duplicate, each of which shall be deemed an original
but both of which together shall constitute one and the same instrument, on the
dates indicated below, with an effective date of October 1, 2008.
THE CANADA LIFE ASSURANCE COMPANY
By: /s/ Xxxxxx Xxxxxx By: /s/ Xxxx - Xxxxxxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxx Xxxxxx, FSA. FCIA. MAAA Name: Xxxx - Xxxxxxxx Xxxxxx
Title: Senior Vice President Life Title: Senior Vice President, Life
Reinsurance Reinsurance
Date: December 23/10 Date: December 28, 2010
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxxx Xxxxxxxxx Attest: /s/ Xxxxxxx X. Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxxx Xxxxxxxxx Name: Xxxxxxx X. Xxxxxx
Title: Assistant Vice President and Title: Senior Vice President and
Actuary Actuary
Date: 12/22/2010 Date: 12/22/2010
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SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
SINGLE LIFE PLANS OF INSURANCE
NAR BASE POLICY
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE* ELIGIBILITY DATE**
---------------------------------------------------------------------------------------------------------------
Stag UL 1980 CSO M/F S/NS Ultimate ALB A 10/01/2008
Hartford Bicentennial UL Founders 2001 CSO M/F S/NS Ultimate ANB A 10/01/2008
Hartford UL CV 1980 CSO M/F S/NS Ultimate ALB A 10/01/2008
Stag Wall Street VUL 1980 CSO M/F S/NS Ultimate ALB A 10/01/2008
Stag Protector II VUL 1980 CSO M/F S/NS Ultimate ALB A 10/01/2008
Hartford Leaders VUL Legacy 2001 CSO M/F Composite Ultimate ANB A 10/01/2008
Stag Accumulator II VUL 1980 CSO M/F Unismoke Ultimate ALB A 10/01/2008
Hartford Leaders VUL Liberty (a) 1980 CSO M/F Unismoke Ultimate ANB A 10/01/2008
Hartford Leaders VUL Liberty (b) 2001 CSO M/F Composite Ultimate ANB A 10/01/2008
Life Solutions II UL (a) 1980 CSO M/F S/NS Ultimate ALB A 10/01/2008
Life Solutions II UL (b) 2001 CSO M/F S/NS Ultimate ALB A 10/01/2008
Hartford Advanced Universal Life 2001 CSO M/F S/NS Ultimate ALB B 10/01/2008
Hartford Bicentennial UL Freedom (a) 2001 CSO M/F S/NS Ultimate ANB B 10/01/2008
Hartford Bicentennial UL Freedom (b) 2001 CSO M/F S/NS Ultimate ANB A 07/01/2010
Hartford Quantum II VUL (a) 2001 CSO M/F S/NS Ultimate ALB A 10/01/2008
Hartford Quantum II VUL (b) 2001 CSO M/F S/NS Ultimate ANB A 10/01/2008
Hartford ExtraOrdinary Whole Life (a) 2001 CSO M/F S/NS Ultimate ALB A 10/01/2008
Hartford ExtraOrdinary Whole Life (b) 2001 CSO M/F S/NS Ultimate ANB A 10/01/2008
Hartford Bicentennial XX Xxxxxxxx XX 0000 XXX X/X X/XX Xxxxxxxx ANB A 03/05/2010
Hartford Bicentennial XX Xxxxxxxx XX 0000 XXX X/X X/XX Xxxxxxxx ANB A 03/05/2010
Extended Value Option
Hartford Frontier Indexed UL 2001 CSO M/F S/NS Ultimate ANB A 09/07/2010
Hartford Frontier Indexed UL 2001 CSO M/F S/NS Ultimate ANB A 09/07/2010
Extended Value Option
------------
* NAR Type is described in Schedule B.
** Policies and riders issued with a policy issue date on or after the Base
Policy Eligibility Date or the Rider Eligibility Date shown may qualify for
automatic reinsurance under the terms of this Agreement.
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SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
SINGLE LIFE PLANS OF INSURANCE
RIDERS PROVIDING DEATH BENEFITS
THAT ARE ELIGIBLE FOR REINSURANCE RIDER ELIGIBILITY DATE**
-------------------------------------------------------------------------------------------------
Primary Term Insured Rider 10/01/2008
Other Covered Insured Term Life Rider 10/01/2008
Cost of Living Adjustment (COLA) Rider 10/01/2008
RIDERS THAT PROVIDE ADDITIONAL BENEFITS
BUT THAT ARE NOT ELIGIBLE FOR REINSURANCE RIDER ELIGIBILITY DATE**
-------------------------------------------------------------------------------------------------
Accidental Death Benefit (ADB) Rider 10/01/2008
Accelerated Benefit Rider (ABR) 10/01/2008
LifeAccess Accelerated Benefit Rider (LAABR) 10/01/2008
Policy Continuation Rider 10/01/2008
Policy Protection Rider (PPR) 10/01/2008
Enhanced No Lapse Guarantee Rider 10/01/2008
RIDERS THAT PROVIDE ADDITIONAL BENEFITS
BUT THAT ARE NOT ELIGIBLE FOR REINSURANCE (CONTINUED) RIDER ELIGIBILITY DATE**
-------------------------------------------------------------------------------------------------
Lifetime No Lapse Guarantee Rider 10/01/2008
Guaranteed Minimum Accumulation Benefit (GMAB) Rider 10/01/2008
Paid-Up Life Insurance Rider 10/01/2008
Conversion Option Rider 10/01/2008
Overloan Protection Rider 10/01/2008
Waiver of Specified Amount (WSA) Rider 10/01/2008
Waiver of Monthly Deductions (WMD) Rider 10/01/2008
Children's Life Insurance Rider 10/01/2008
Foreign Travel Exclusion Rider 10/01/2008
Estate Tax Repeal Benefit Rider 10/01/2008
Modified Surrender Value Rider 10/01/2008
Cash Surrender Value Endorsement 10/01/2008
Automatic Premium Payment Rider 10/01/2008
Additional Premium Rider 10/01/2008
Qualified Plan Rider 10/01/2008
Owner Designated Settlement Option Rider 03/05/2010
NOTE: NAR Type for term riders above is C. For COLA Rider, NAR Type follows Base
Policy to which it is attached.
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SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
SINGLE LIFE PLANS OF INSURANCE
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING ADDITIONAL DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Primary Insured Term Rider: Provides additional level term life coverage on the
base policy insured.
Other Covered Insured Term Life Rider: Provides level term life coverage on an
insured other than the base policy insured.
Cost of Living Adjustment (COLA) Rider: Provides for biennial face amount
increases, without underwriting, based on increases in the Consumer Price Index.
The maximum amount of any single increase is $50,000. Any increase can be
declined by the policyholder, which stops future increases. Available only at
issue and only for non-substandard issue ages 0 through 60.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS THAT ARE NOT ELIGIBLE FOR REINSURANCE:
Accidental Death Benefit Rider: Pays an additional death benefit if the death on
the insured is caused by a qualifying accident.
Accelerated Benefit Rider: Provides the policyholder up to 100% of the death
benefit, discounted with interest, if the insured's life expectancy is 12 months
or less. After acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
LifeAccess Accelerated Benefit Rider (LAABR): Provides for monthly benefits (up
to 2% of death benefit) if insured meets certain ADL and home-care requirements.
During and after acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
Policy Continuation Rider: Intended to prevent the lapse of highly loaned
policies.
Policy Protection Rider: Protects the death benefit of the base policy and any
primary insured term rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Enhanced No Lapse Guarantee Rider: Provides that the policy will not lapse as
long as cumulative premiums paid less indebtedness less withdrawals are greater
than or equal to the cumulative no lapse guarantee premiums. Length of guarantee
varies by issue age.
Lifetime No Lapse Guarantee Rider: Same as Enhanced No Lapse Guarantee Rider but
with lifetime guarantee.
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
37
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
SINGLE LIFE PLANS OF INSURANCE
Guaranteed Minimum Accumulation Benefit (GMAB) Rider: Provides, at the end of
the GMAB Guarantee Period (usually 20 years), that the policy Account Value will
be increased, if necessary, to equal the sum of gross premiums paid to that
date. There is a small monthly charge and a minimum cumulative premium
requirement to keep the rider in force.
Paid-Up Life Insurance Rider: Similar to the GMAB rider, with the same Guarantee
Period, a monthly charge, and a cumulative premium requirement. At end of the
Guarantee Period, the owner may elect to change coverage to paid-up life using
the Account Value as a 5% NSP to determine the amount of coverage; however, the
amount of coverage will never be lower than the sum of gross premiums paid to
that date. Once elected, premiums are no longer payable.
Conversion Option Rider: During certain policy years and prior to the insured's
attained age 70, the policy may be converted, without evidence of insurability,
to any permanent plan of life insurance the Ceding Company then makes available
for conversions of this policy.
Overloan Protection Rider: Protects a policy from terminating due to overloan.
Waiver of Specified Amount (WSA) Rider: Waives a specified amount monthly while
the insured is disabled.
Waiver of Monthly Deductions (WMD) Rider: Waives monthly deduction amounts while
the insured is disabled.
Children's Life Insurance Rider: Provides level term life coverage for each
child of the insured.
Foreign Travel Exclusion Rider: Provides a limited death benefit (Account Value
less indebtedness) if the insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
Estate Tax Repeal Benefit Rider: Pays the policy Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Modified Surrender Value Rider: Changes the Cash Surrender Value definition (to
equal the Account Value) if the policy is surrendered within 3 years after the
policy issue date.
Cash Surrender Value Endorsement: Provides for enhanced Cash Surrender Value
(equal to the current Account Value) in the event of policy surrender in the
first 4 policy years, unless the policy is exchanged under Section 1035 to
another company's policy.
Automatic Premium Payment Rider: Provides for any Scheduled Premium due and
unpaid by the end of any Policy Grace Period to be paid by an automatic
deduction from the Account Value, if the Account Value exceeds the Guaranteed
Cash Value.
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
38
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
Additional Premium Rider: Allows additional premium amounts to be paid at the
same payment intervals as scheduled premiums.
Qualified Plan Rider: This rider indicates that the policy is owned by a
qualified plan, details the policy owner's reporting responsibilities to the
Ceding Company, and describes features and activities that are unavailable when
the policy is owned by a Qualified Plan.
Owner Designated Settlement Option. This rider allows the policy owner to
designate a Settlement Option to be used for the payment of Death Proceeds.
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
39
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
LAST SURVIVOR PLANS OF INSURANCE
NAR BASE POLICY
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE* ELIGIBILITY DATE**
-----------------------------------------------------------------------------------------------------------------
Hartford Leaders VUL Joint Legacy 2001 CSO M/F S/NS Ultimate ALB A 10/01/2008
Hartford Leaders VUL Joint Legacy II 2001 CSO M/F S/NS Ultimate ANB A 10/01/2008
Hartford Advanced Last Survivor UL 2001 CSO M/F S/NS Ultimate ALB B 10/01/2008
Hartford Bicentennial XX Xxxxx Xxxxxxx 0000 XXX X/X X/XX Xxxxxxxx XXX X 10/01/2008
Hartford Bicentennial UL Joint Freedom II (a) 2001 CSO M/F S/NS Ultimate ANB B 10/01/2008
Hartford Bicentennial UL Joint Freedom II (b) 2001 CSO M/F S/NS Ultimate ANB A 07/01/2010
------------
* NAR Type is described in Schedule B.
** Policies and riders issued with a policy issue date on or after the Base
Policy Eligibility Date or the Rider Eligibility Date shown may qualify for
automatic reinsurance under the terms of this Agreement.
RIDERS PROVIDING DEATH BENEFITS
THAT ARE ELIGIBLE FOR REINSURANCE RIDER ELIGIBILITY DATE**
---------------------------------------------------------------------
Estate Protection Rider (NAR Type is C) 10/01/2008
RIDERS THAT PROVIDE ADDITIONAL BENEFITS
BUT THAT ARE NOT ELIGIBLE FOR REINSURANCE RIDER ELIGIBILITY DATE**
----------------------------------------------------------------------------------
LS Exchange Option Rider 10/01/2008
Policy Protection Rider 10/01/2008
Estate Tax Repeal Rider 10/01/2008
Foreign Travel Exclusion Rider 10/01/2008
Guaranteed Minimum Accumulation Benefit (GMAB) Rider 10/01/2008
Paid-Up Life Insurance Rider 10/01/2008
Owner Designated Settlement Option Rider 03/05/2010
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Estate Protection Rider: This rider provides last survivor level term life
insurance on the base policy insureds for three years.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
LS Exchange Option Rider: Allows a Last Survivor policy to be split into two
Single Life policies, without new evidence of insurability, if divorce, business
dissolution, or estate-tax repeal or reduction occurs. The face amount of each
new Single Life policy will equal one half of the Last Survivor policy face
amount. Upon a split, reinsurance will continue at point-in-scale rates for each
single life, as documented in Section X.C. (This rider is not available when one
of the insureds is uninsurable or above Table H.)
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
40
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
Policy Protection Rider: Protects the death benefit of the base policy and any
Estate Protection Rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Estate Tax Repeal Rider: This rider will pay the Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Foreign Travel Exclusion: Provides a limited death benefit (Account Value less
indebtedness) if either insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
Guaranteed Minimum Accumulation Benefit Rider and Paid-Up Life Insurance Rider:
Same as Single Life riders.
Owner Designated Settlement Option. Same as Single Life rider.
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
41
SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
AUTOMATIC REINSURANCE: The Ceding Company shall retain its available retention
on each risk, defined below as the Retained Net Amount at Risk, subject to the
applicable Ceding Company's Treaty Retention Limit shown in Exhibit II.
The Reinsurer will automatically reinsure a portion of the remainder of the
risk, called the Reinsured Net Amount at Risk, as defined below in this Schedule
B, not to exceed the Reinsurer's Maximum Automatic Participation Limit, as set
forth in Exhibit II.
TOTAL ALLOCATION LIMIT (TAL): AS SHOWN IN EXHIBIT II.
CEDING COMPANY'S TREATY RETENTION LIMIT (CCTRL): As shown in Exhibit II.
CEDING COMPANY'S ALLOCATED RETENTION (CCAR): As shown in Exhibit II.
CURRENT RETENTION (CURRRET) = Current amount of life insurance retained by the
Ceding Company and its affiliated companies on the life for in-force life
insurance coverage. (For Last Survivor risks, see the Last Survivor Limits and
Retention Worksheet in Exhibit II.)
REINSURER'S ALLOCATED RETENTION (REINSARET): As shown in Exhibit II.
REINSURER'S ATTACHMENT POINT (REINSAPT): As shown in Exhibit II.
NAR TYPE for the Plan of Insurance to be reinsured under this Agreement, as
shown in Schedule A.
STEP 1 -- DETERMINE TOTAL NET AMOUNT AT RISK FOR THE COVERAGE
TOTAL NET AMOUNT AT RISK (TOTNAR)* =
For NAR TYPE A, Death Benefit minus the Account Value.
For NAR TYPE B, Death Benefit minus the Working Reserve, where
Working Reserve = (i) x (ii)/(iii), and
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
42
SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
For NAR TYPE C, Death Benefit.
* In cases where the current Working Reserve is not available, the Ceding
Company may estimate such amount using either the most recent Working
Reserve or the Account Value.
STEP 2 -- DETERMINE NET AMOUNT AT RISK FOR EACH "LAYER" OF COVERAGE
STEP 3 -- DETERMINE THE NAR FOR THE CEDING COMPANY AND THEN FOR THE REINSURER
MINIMUM AUTOMATIC REINSURANCE CESSION:
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
43
SCHEDULE C
[Redacted]
THIS SCHEDULE LEFT BLANK INTENTIONALLY
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
44
SCHEDULE D
SPECIAL UNDERWRITING PROGRAMS
EFFECTIVE OCTOBER 1, 2008
The Ceding Company has several special underwriting programs. The majority of
these programs are contained within the Underwriting Brochure entitled "Life
insurance underwriting that opens doors and closes cases", form LCM-05-418-1-09.
Another program, Life Express, effective October 26, 2009, is documented in a
LifeTIMES Bulletin dated October 30, 2009. Both of these publications have been
shared in advance of the execution of this Agreement with the Reinsurer. The
Ceding Company has two additional special underwriting programs not listed in
the Underwriting Brochure, the "Xxxxx Program" and the "Director's Charitable
Award Program", which are listed below.
[Redacted]
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
45
SCHEDULE D
SPECIAL UNDERWRITING PROGRAMS
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
46
SCHEDULE D
SPECIAL UNDERWRITING PROGRAMS
EFFECTIVE OCTOBER 1, 2008
[Redacted]
DIRECTOR'S CHARITABLE AWARD PROGRAM (DCAP) -- CONTINUED
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
47
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
UNDERWRITING MANUALS
The Swiss Re Underwriting Guideline and our internal changes, both of which are
documented in our InfoBase data system, are the primary reference sources we
currently use when arriving at medical offers on cases. Final decisions are
based on all aspects of the case, and at times may differ from the guidelines in
these manuals. They may also differ in situations where our Medical Department
has published guidelines that suggest other ways to underwrite or view an
impairment or test result. Other than the information published by our Medical
Department, however, all variances from our underwriting manuals or department
guidelines should be completely documented in the underwriting file. Financial
and other non-medical underwriting guidelines can be found in the InfoBase
training and documentation system.
Allocated Retention Pool (Non-Excess Risks) -- Effective 10/01/2008
Between Canada Life and HLAIC
48
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
49
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
UNDERWRITING REQUIREMENTS -- STANDARD PERMANENT PLANS (CONT'D)
[Redacted]
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
50
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
UNDERWRITING REQUIREMENTS -- STAG WALL STREET VUL
[Redacted]
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
51
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
UNDERWRITING REQUIREMENTS -- STAG WALL STREET VUL (CONT'D)
[Redacted]
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
52
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
UNDERWRITING REQUIREMENTS -- MIDDLE AMERICA (LIFE SOLUTIONS II)
[Redacted]
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
53
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
54
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
PREFERRED CLASSES -- ADDITIONAL UNDERWRITING REQUIREMENTS
EFFECTIVE OCTOBER 1, 2008 THROUGH MAY 23, 2010
[Redacted]
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
55
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
PREFERRED CLASSES -- ADDITIONAL UNDERWRITING REQUIREMENTS (CONT'D)
EFFECTIVE OCTOBER 1, 2008 THROUGH MAY 23, 2010
[Redacted]
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
56
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
PREFERRED CLASSES -- ADDITIONAL UNDERWRITING REQUIREMENTS (CONT'D)
EFFECTIVE OCTOBER 1, 2008 THROUGH MAY 23, 2010
[Redacted]
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
57
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
PREFERRED CLASSES -- ADDITIONAL UNDERWRITING REQUIREMENTS (CONT'D) EFFECTIVE MAY
24, 2010
[Redacted]
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
58
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
PREFERRED CLASSES -- ADDITIONAL UNDERWRITING REQUIREMENTS (CONT'D) EFFECTIVE
AUGUST 20, 2010
[Redacted]
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
59
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
60
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
61
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
62
SCHEDULE F
POLICIES ELIGIBLE FOR REINSURANCE UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
The following categories of policies are eligible for reinsurance under this
Agreement:
CATEGORY # CATEGORY DESCRIPTION
-------------------------------------------------------------------------------------------------------------------------
1 Policies issued on or after March 1, 2009
2 Policies issued from the Effective Date of this Agreement through February 28, 2009 that were eligible for
automatic reinsurance under one of the following Ceding Company reinsurance pools:
(i) Single Life Excess Pool effective November 1, 2002;
(ii) Advanced UL Pool effective September 1, 2004;
(iii) Last Survivor Excess Pool effective January 1, 2002; and
(iv) Advanced Last Survivor UL Pool effective January 1, 2005,
but that were fully retained by the Ceding Company at the time of processing (see Note below).
Notwithstanding the foregoing, fully retained policies issued during this period in which the insured has a
subsequent policy that is partially or fully ceded to another pool (including the Hartford Term Pool
effective April 10, 2006) will not be eligible for reinsurance under this Agreement.
Note:The Ceding Company completed the processing of Category 2 business in July 2009. At the time of
processing, the Ceding Company paid the Reinsurer Reinsurance Premiums for all policies in Category 2 back
to each policy's effective date.
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
63
EXHIBIT I
REINSURANCE PREMIUM CALCULATION
EFFECTIVE OCTOBER 1, 2008
FOR SINGLE LIFE PLANS OF INSURANCE
REINSURANCE PREMIUM
Reinsurance Premium shall be calculated each month for each risk reinsured as [
(i) + (ii) ]/12, where:
(i) equals the Yearly Renewable Term (YRT) Reinsurance Premium for the
coverage (as defined below); and
(ii) equals the Annual Flat Extra Reinsurance Premium (as defined below)
for the coverage, where
the sum of [ (i) + (ii) ] shall not exceed the Reinsured Net Amount at Risk for
such coverage, defined in Schedule B.
For the purposes of calculating Reinsurance Premium, the following will be
considered separate coverages: base policy, increases in coverage, and reinsured
riders.
YEARLY RENEWABLE TERM (YRT) REINSURANCE PREMIUM
The YRT Reinsurance Premium for each coverage shall equal (i) x (ii) x
(iii)/1,000, where:
(i) equals [ (a) x (b) ], (the "Base YRT Reinsurance Premium Rate")
where:
(a) equals the applicable rate from the tables of Annual Rates per
$1,000 of Reinsured Net Amount at Risk specified in Exhibit III;
and
(b) equals the applicable percentage from the tables of YRT Reinsurance
Rate Factors to be Applied to the Annual Rates per $1,000 of
Reinsured Net Amount at Risk specified in Exhibit IV;
(ii) equals the applicable Substandard Table Percentage, specified in
Exhibit V, for the risk; and
(iii) equals the Reinsured Net Amount at Risk for such coverage, defined
in Schedule B.
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
64
EXHIBIT I
REINSURANCE PREMIUM CALCULATION
EFFECTIVE OCTOBER 1, 2008
FOR SINGLE LIFE PLANS OF INSURANCE
ANNUAL FLAT EXTRA REINSURANCE PREMIUM
The Annual Flat Extra Reinsurance Premium for each coverage equals {(i) x [ 1 -
(ii) ] x [(iii)/1,000]}, where:
(i) equals the applicable annual flat extra rate per 1,000, for the year
of coverage, that the Ceding Company charges for the coverage;
(ii) equals the Flat Extra Allowance Percentage, specified below; and
(iii) equals the Reinsured Net Amount At Risk for such coverage, defined
in Schedule B.
FLAT EXTRA ALLOWANCE PERCENTAGE
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
65
EXHIBIT I
REINSURANCE PREMIUM CALCULATION
EFFECTIVE OCTOBER 1, 2008
FOR LAST SURVIVOR PLANS OF INSURANCE
REINSURANCE PREMIUM
Reinsurance Premium shall be calculated each month for each risk reinsured as
[(i) x (ii)/1,000]/12, where:
(ii) equals the Reinsured Net Amount at Risk for the coverage, defined in
Schedule B.
For the purposes of calculating Reinsurance Premium, the following will be
considered separate coverages: base policy, increases in coverage, and reinsured
riders. Reinsurance Premium for a single life rider attached to a last survivor
policy shall be determined in accordance with the Reinsurance Premium
calculations for single life plans of insurance.
YRT REINSURANCE PREMIUM RATE PER 1,000*
The YRT Reinsurance Premium Rate per 1,000 for each life for each coverage shall
equal (i) x (ii) + (iii), but in no event more than 1,000, where:
(i) equals the quantity [ (a) x (b) ], where:
(a) equals the applicable rate from the tables of Annual Rates per
$1,000 of Reinsured Net Amount at Risk specified in Exhibit III;
and
(b) equals the applicable percentage from the tables of YRT Reinsurance
Rate Factors to be Applied to the Annual Rates per $1,000 of
Reinsured Net Amount at Risk specified in Exhibit IV;
(ii) equals the applicable Substandard Table Percentage, specified in
Exhibit V, for the risk; and
(iii) equals the Annual Flat Extra Reinsurance Premium per 1,000, as
defined below.
* For purposes of determining the YRT Reinsurance Premium Rate per 1,000, a
life deemed uninsurable will be treated as Table P for 20 years with A $250
flat extra for 10 years.
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
66
EXHIBIT I
REINSURANCE PREMIUM CALCULATION
EFFECTIVE OCTOBER 1, 2008
FOR LAST SURVIVOR PLANS OF INSURANCE
ANNUAL FLAT EXTRA REINSURANCE PREMIUM PER 1,000
The Annual Flat Extra Reinsurance Premium per 1,000 for each coverage equals
{(i) x [ 1 - (ii)]}, where:
(i) equals the applicable annual flat extra rate per 1,000, for the year
of coverage, that the Ceding Company charges for the coverage; and
(ii) equals the Flat Extra Allowance Percentage, specified below.
FLAT EXTRA ALLOWANCE PERCENTAGE
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
67
EXHIBIT II
RETENTION AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
(FOR SPECIFICS ON CALCULATION OF LIMITS WITH LAST SURVIVOR COVERAGE, SEE
WORKSHEET ON PAGE 4)
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
68
EXHIBIT II
RETENTION AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
(FOR SPECIFICS ON CALCULATION OF LIMITS WITH LAST SURVIVOR COVERAGE, SEE
WORKSHEET ON PAGE 4)
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
69
EXHIBIT II
RETENTION AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
70
EXHIBIT II
RETENTION AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
EFFECTIVE OCTOBER 1, 2008
LAST SURVIVOR LIMITS AND RETENTION WORKSHEET FOR NON-EXCESS RISKS
(NOTE: IF ONE LIFE IS UNINSURABLE, TREAT THE RISK AS A SINGLE LIFE RISK FOR THE
PURPOSE OF LIMITS.)
[Redacted]
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
71
EXHIBIT III
ANNUAL RATES PER $1,000 OF REINSURED NET AMOUNT AT RISK
EFFECTIVE OCTOBER 1, 2008
FOR SINGLE LIFE AND LAST SURVIVOR PLANS OF INSURANCE
AND
FOR AUTOMATIC REINSURANCE
Annual Rates per $1,000 of Reinsured Net Amount at Risk are provided in the
following attached tables of Exhibit III. They are provided on a Select &
Ultimate basis and vary by:
1. Age basis (Age Nearest Birthday or Age Last Birthday), to align with the
Valuation Mortality Table for the Plan of Insurance;
2. Gender (Male, Female); and
3. Rate class --
a. Preferred Plus Non-Nicotine (PPNN);
b. Preferred Non-Nicotine (PNN);
c. Standard Non-Nicotine (SNN);
d. Preferred Nicotine (PN); and
e. Standard Nicotine (SN).
For Life Solutions II UL plans, Annual Rates per $1,000 of Reinsured Net Amount
at Risk will be determined as follows:
(1) For "Preferred" policies, use the SNN rate class; and
(2) For "Standard" policies, use the SN rate class.
All risks insured by the Ceding Company on a Unisex basis will be reinsured
using gender-specific rates.
Note: If the Annual Rates per $1,000 or YRT Reinsurance Rate Factors shown in
Exhibit IV of this Agreement are changed, the Ceding Company and the Reinsurer
will determine whether the Annual Rates per $1,000 or YRT Reinsurance Rate
Factors for the Excess Risks agreement need to be changed.
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
72
EXBIBIT III
ANNUAL RATES PER $1,000 OF REINSURED NET AMOUNT AT RISK
[Redacted]
[ILLEGIBLE]
[ILLEGIBLE]
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
[ILLEGIBLE]
[ILLEGIBLE]
[ILLEGIBLE]
EXHIBIT IV
YRT REINSURANCE RATE FACTORS
EFFECTIVE OCTOBER 1, 2008
YRT REINSURANCE RATE FACTORS (SEE EXHIBIT I FOR USAGE)
For Automatic Reinsurance under this Agreement, Table 1 applies for all coverage
years on Reinsured Net Amount at Risk (ReinsNAR) for portions of face amount not
exceeding Total Allocation Limit (TAL).
TABLE 1
For Single Life Plans, use applicable factor for issue age, gender, and risk
class from tables above.
For Last Survivor Plans, use (applicable factor for issue age, gender, and risk
class from tables above) x (applicable Last Survivor Factor LSF for gender and
risk class from tables above).
For Life Solutions II UL plans, YRT Reinsurance Rate Factors will be determined
as follows:
(1) For "Preferred" policies, use the SNN rate class; and
(2) For "Standard" policies, use the SN rate class.
Note: If the YRT Reinsurance Rate Factors or the Annual Rates per $1,000 shown
in Exhibit III of this Agreement are changed, the Ceding Company and the
Reinsurer will determine whether the Annual Rates per $1,000 or YRT Reinsurance
Rate Factors for the Excess Risks agreement need to be changed.
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
93
EXHIBIT V
SUBSTANDARD TABLE PERCENTAGES
EFFECTIVE OCTOBER 1, 2008
SUBSTANDARD TABLE PERCENTAGES (SEE EXHIBIT I FOR USAGE)
[Redacted]
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
94
EXHIBIT VI
CONDITIONAL RECEIPT OR TEMPORARY INSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
[LOGO] HARTFORD LIFE INSURANCE COMPANY
THE HARTFORD HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
000 XXXXXXXXXX XXXXX, XXXXXXXX, XX 00000
X.X. XXX 00000, XX. XXXX, XX 00000-0000
TEMPORARY INSURANCE AGREEMENT
PROPOSED PRIMARY INSURED: NAME: DATE OF BIRTH:
Under this Temporary Insurance Agreement ("Agreement"), Hartford Life Insurance
Company or Hartford Life and Annuity Insurance Company ("Company") agrees to
provide a limited amount of life insurance coverage, for a limited period of
time, subject to the terms and conditions set forth below.
WHEN COVERAGE BEGINS
Temporary life insurance coverage under the Agreement becomes effective on the
date this Agreement is signed, subject to all of the following conditions:
a) An Application for Life Insurance with the Company ("Application") or a
Request for Insurance Application with the Company ("Request") has been
completed as of the same date this Agreement has been signed;
b) The answers to the health questions below are "No"; and
c) The Company receives the first full modal premium for the mode selected on
the Application or the Request.
WHEN TEMPORARY INSURANCE COVERAGE TERMINATES -- 90 DAY MAXIMUM
Temporary insurance under this Agreement will terminate on the earliest of:
1. 30 days from the effective date of this Agreement if a required and
requested medical exam, lab test, application interview or medical report has
not been received by the Company;
2. 90 days from the effective date of this Agreement;
3. The date the policy, as applied for, takes effect;
4. The date the Company offers a policy with a risk assessment other than
Standard or a Preferred Class;
5. The date the Company mails a notice of termination of this Agreement to the
Proposed Policyowner at the address set forth in the Application or Request.
If the Company terminates coverage, the collected premium will be refunded
without interest.
WHO IS COVERED
This Agreement provides temporary insurance coverage only for the Primary
Insured. The Primary Insured is the "Proposed Insured" named in the Request, the
"Proposed Insured 1" named in the Application, or "Proposed Insured 1" and
"Proposed Insured 2" named in Applications for survivorship life insurance
coverage. This Agreement does not provide insurance coverage for any other
proposed insureds, including but not limited to, other proposed insureds under
term insurance riders and child riders.
AMOUNT OF LIFE INSURANCE COVERAGE -- $1,000,000 MAXIMUM
If death of a covered Primary Insured occurs while this Agreement is in effect,
the Company will pay a death benefit to the beneficiary designated in the
Application or Request.
The death benefit shall be the LESSER of:
a) The amount of death benefit indicated in the Application or Request, with
respect to the deceased Primary Insured; or
b) $1,000,000.
LIMITATIONS AND CONDITIONS OF COVERAGE
1. If benefits are payable under this Agreement, then no benefit relating to
that loss will be payable under the policy which is applied for.
2. Material misrepresentations or fraud in the answers to the Health Questions
set forth below or in the Application will invalidate this Agreement and the
Company's liability will be limited to a refund of the premium payment.
3. This Agreement does not cover any Primary Insured who is age 71 or over as
of the effective date of this Agreement.
DETACH OWNER'S COPY AT TIME OF APPLICATION
HOME OFFICE COPY
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
95
EXHIBIT VI
CONDITIONAL RECEIPT OR TEMPORARY INSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
LIMITATIONS AND CONDITIONS OF COVERAGE (CONTINUED)
4. This Agreement provides temporary life insurance coverage in the event of
the death of Primary Insured. It does not provide any coverage for other
benefits which may be applied for, including but not limited to, waiver of
premium or accidental death benefits or coverage.
5. There is no coverage under this Agreement if a Primary Insured dies by
suicide. In that event, the Company's liability will be limited to a refund of
the premium payment.
6. There is no coverage under this Agreement if the check or draft submitted as
payment is not honored on the first presentation to the bank.
7. Only an officer of the Company can make, modify, or alter any of the
provisions of this Agreement.
HEALTH QUESTIONS
Has the Primary Insured:
1. Within the past 90 days, other than for pregnancy or childbirth, been
admitted to or treated at a hospital or other medical facility, been advised to
be admitted, or had surgery performed or recommended?
Yes No
2. Within the past 2 years had or been treated for heart disease, chest pain,
stroke, cancer, alcohol or drug use, immune system disorder or had such
treatment recommended by a physician or medical practitioner?
Yes No
NOTE: If either Question #1 or Question #2 above is answered "Yes" or left
blank, no coverage will take effect under this Temporary Insurance Agreement and
any premium received will be refunded.
DECLARATIONS
Each of the undersigned declares, understands and agrees that:
- The answers provided above are complete and true to the best of
his/her knowledge and belief.
- If the answers to the Health Questions contained in this Agreement or
the Application are incorrect, incomplete or untrue, the Company will
have the right to deny benefits under this Agreement.
X DATE:
----------------------------------- ------------------------------
Proposed Primary Insured Signature
X DATE:
----------------------------------- ------------------------------
Proposed Policy Owner Signature
(if other than the Proposed
Insured)
RECEIPT OF PAYMENT
A premium payment of $ has been submitted with the Application or
Request. Additional premium may be required upon Policy delivery.
All premium checks must be made payable to Hartford Life Insurance Company or
Hartford Life and Annuity Insurance Company. Do not make check(s) payable to the
Agent or leave the payee blank.
X DATE:
----------------------------------- ------------------------------
Agent Signature
DETACH OWNER'S COPY AT TIME OF APPLICATION
HOME OFFICE COPY
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
96
EXHIBIT VI
CONDITIONAL RECEIPT OR TEMPORARY INSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
[LOGO] HARTFORD LIFE INSURANCE COMPANY
THE HARTFORD HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
000 XXXXXXXXXX XXXXX, XXXXXXXX, XX 00000
X.X. XXX 00000, XX. XXXX, XX 00000-0000
TEMPORARY INSURANCE AGREEMENT
PROPOSED PRIMARY INSURED: NAME: DATE OF BIRTH:
Under this Temporary Insurance Agreement ("Agreement"), Hartford Life Insurance
Company or Hartford Life and Annuity Insurance Company ("Company") agrees to
provide a limited amount of life insurance coverage, for a limited period of
time, subject to the terms and conditions set forth below.
WHEN COVERAGE BEGINS
Temporary life insurance coverage under the Agreement becomes effective on the
date this Agreement is signed, subject to all of the following conditions:
a) An Application for Life Insurance with the Company ("Application") or a
Request for Insurance Application with the Company ("Request") has been
completed as of the same date this Agreement has been signed;
b) The answers to the health questions below are "No"; and
c) The Company receives the first full modal premium for the mode selected on
the Application or the Request.
WHEN TEMPORARY INSURANCE COVERAGE TERMINATES -- 90 DAY MAXIMUM
Temporary insurance under this Agreement will terminate on the earliest of:
1. 30 days from the effective date of this Agreement if a required and
requested medical exam, lab test, application interview or medical report has
not been received by the Company;
2. 90 days from the effective date of this Agreement;
3. The date the policy, as applied for, takes effect;
4. The date the Company offers a policy with a risk assessment other than
Standard or a Preferred Class;
5. The date the Company mails a notice of termination of this Agreement to the
Proposed Policyowner at the address set forth in the Application or Request.
If the Company terminates coverage, the collected premium will be refunded
without interest.
WHO IS COVERED
This Agreement provides temporary insurance coverage only for the Primary
Insured. The Primary Insured is the "Proposed Insured" named in the Request, the
"Proposed Insured 1" named in the Application, or "Proposed Insured 1" and
"Proposed Insured 2" named in Applications for survivorship life insurance
coverage. This Agreement does not provide insurance coverage for any other
proposed insureds, including but not limited to, other proposed insureds under
term insurance riders and child riders.
AMOUNT OF LIFE INSURANCE COVERAGE -- $1,000,000 MAXIMUM
If death of a covered Primary Insured occurs while this Agreement is in effect,
the Company will pay a death benefit to the beneficiary designated in the
Application or Request.
The death benefit shall be the LESSER of:
a) The amount of death benefit indicated in the Application or Request, with
respect to the deceased Primary Insured; or
b) $1,000,000.
LIMITATIONS AND CONDITIONS OF COVERAGE
1. If benefits are payable under this Agreement, then no benefit relating to
that loss will be payable under the policy which is applied for.
2. Material misrepresentations or fraud in the answers to the Health Questions
set forth below or in the Application will invalidate this Agreement and the
Company's liability will be limited to a refund of the premium payment.
3. This Agreement does not cover any Primary Insured who is age 71 or over as
of the effective date of this Agreement.
OWNER'S COPY
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
97
EXHIBIT VI
CONDITIONAL RECEIPT OR TEMPORARY INSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
LIMITATIONS AND CONDITIONS OF COVERAGE (CONTINUED)
4. This Agreement provides temporary life insurance coverage in the event of
the death of Primary Insured. It does not provide any coverage for other
benefits which may be applied for, including but not limited to, waiver of
premium or accidental death benefits or coverage.
5. There is no coverage under this Agreement if a Primary Insured dies by
suicide. In that event, the Company's liability will be limited to a refund of
the premium payment.
6. There is no coverage under this Agreement if the check or draft submitted as
payment is not honored on the first presentation to the bank.
7. Only an officer of the Company can make, modify, or alter any of the
provisions of this Agreement.
HEALTH QUESTIONS
Has the Primary Insured:
1. Within the past 90 days, other than for pregnancy or childbirth, been
admitted to or treated at a hospital or other medical facility, been advised to
be admitted, or had surgery performed or recommended?
Yes No
2. Within the past 2 years had or been treated for heart disease, chest pain,
stroke, cancer, alcohol or drug use, immune system disorder or had such
treatment recommended by a physician or medical practitioner?
Yes No
NOTE: If either Question #1 or Question #2 above is answered "Yes" or left
blank, no coverage will take effect under this Temporary Insurance Agreement and
any premium received will be refunded.
DECLARATIONS
Each of the undersigned declares, understands and agrees that:
- The answers provided above are complete and true to the best of
his/her knowledge and belief.
- If the answers to the Health Questions contained in this Agreement or
the Application are incorrect, incomplete or untrue, the Company will
have the right to deny benefits under this Agreement.
X DATE:
----------------------------------- ------------------------------
Proposed Primary Insured Signature
X DATE:
----------------------------------- ------------------------------
Proposed Policy Owner Signature
(if other than the Proposed
Insured)
RECEIPT OF PAYMENT
A premium payment of $ has been submitted with the Application or
Request. Additional premium may be required upon Policy delivery.
All premium checks must be made payable to Hartford Life Insurance Company or
Hartford Life and Annuity Insurance Company. Do not make check(s) payable to the
Agent or leave the payee blank.
X DATE:
----------------------------------- ------------------------------
Agent Signature
OWNER'S COPY
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
98
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
REPORT ACCOUNTING PERIOD DUE DATE
------------------------------------------------------------------------------------------------------------
1. New Business* Monthly 30th day after month end
(New issues only -- first time
policy reported to the Reinsurer)
2. Renewal Business* Monthly 30th day after month end
(Policies with renewal dates
within the Accounting Period)
3. Changes & Terminations* Monthly 30th day after month end
(includes conversions, replacements
reinstatements, increases, decreases,
recaptures, lapses, claims, etc.)
4. Inforce List Monthly 30th day after month end
(Listing of each policy in force)
5. Statutory Reserves Quarterly 30th day after quarter end
6. Policy Exhibit Monthly 30th day after month end
------------
* Policy record details for new business, renewal business, and changes and
terminations (Reports 1, 2, and 3 above) may be reported as separate reports
or combined into one report, provided, the required data elements continue
to be satisfied.
REPORTING SYSTEM:
The system used by the Ceding Company to administer its reinsurance is: TAI.
NOTE:
Certain policy transactions, such as increases, are coded in the policy
administration system as riders, although they do not correspond to filed rider
forms.
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
99
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
MINIMUM DATA REQUIREMENTS
INFORCE AND TRANSACTION FILE
Company Identifies the Ceding Company
Policy Policy number which is part of the policy key
Coverage/rider Coverage number which is part of the policy key. This
number is used to identify specific policy coverage.
Cession ID This field contains the number assigned to this cession by
the Reinsurer
Transaction Sequence This field indicates the transaction record(s) created
during the month.
Line of Business This field indicates the line of business the policy falls
under.
Reinsurance Company Two character reinsurance company ID code that identifies
the Reinsurer.
Reporting Company Identifies the company used for reporting purposes. Will
be the same as the Reinsurance Company.
Transaction Type Identifies the type of transaction being reported on the
Transaction extract.
Transaction Count This field is used on the Transaction extract to identify
the addition or termination of a cession.
Reinsurance From This field contains the beginning date of the period
Date covered by this record. The premiums on the Transaction
record cover the period beginning with the From Date
through the To Date.
Reinsurance To Date This field contains the end date of the period covered by
a record.
Date Reported On the Transaction extract, this is the month the
transaction was reported.
Mode Identifies the mode of reinsurance premium payment.
Policy Duration The duration at issue is 01.
Reinsurance Duration Contains the reinsurance duration. It may differ from the
policy duration if the cession is a continuation.
Cession Number Hartford does not currently use. Defaults to spaces.
Policy Date This field contains the effective date of the policy.
Reinsurance Date This field contains the effective date of the reinsurance.
For most cessions it is the same as the policy date. For
continuations, it contains the effective date of the
original coverage.
Issue State This field contains a two-letter abbreviation of the state
or province of issue. Used to determine unisex rates.
Resident State This field contains a two-letter abbreviation of the state
or province of issue. Used to compute premium tax
reimbursement if applicable.
Joint Type Identifies Joint business type
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
100
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Joint Age Used for joint coverages using a joint equivalent age for
rate searches.
Auto/Fac Indicator Indicates whether the policy is ceded on an Automatic or
Facultative basis.
Death Benefit Option This field contains the option chosen by the insured for
death proceeds payment.
Participation code This field indicates whether the business is Non
Participating (N) or Participating (P).
Issue Type Identifies how a cession was issued. (New business or
Continuation)
Underwriting Method Identifies the type of underwriting used to issue the
coverage.
Treaty Number This field contains the TAI system treaty number
Reinsurance Type This field is a one-character code that identifies the
type of reinsurance. (Y = YRT, C = Coinsurance & M =
Modco.)
Plan This field contains the coverage plan code.
Product code This field contains the product type code.
Product code 1 For Joint Life policies, this field contains the product
type code for Insured 1.
Product code 2 For Joint Life policies, this field contains the product
type code for Insured 2. (If this is not a Joint Life
policy, this field will be blank.)
Currency Code This field identifies the currency. (USD or CND if
applicable)
Last Name -- 1 This field contains the insured's last name. For Joint
Life policies, this field contains the last name for
Insured 1. (Maximum of 20 characters)
First Name -- 1 This field contains the insured's first name. For Joint
Life policies, this field contains the first name for
Insured 1. (Maximum of 15 characters)
Middle Initial -- 1 This field contains the insured's middle initial. For
Joint Life policies, this field contains the middle
initial for Insured 1. (1 character)
Client ID -- 1 This field contains the unique client ID for an insured
used to connect lives when calculating retention on a
life. For Joint Life policies, this field indicates the
client ID for Insured 1. (Maximum of 20 characters)
Insured Status -- 1 This field indicates the insured's coverage status. For
Joint Life policies, this field indicates the insured's
coverage status for Insured 1.
DOB -- 1 This field contains the insured's date of birth. For Joint
Life policies, this field contains the date of birth for
Insured 1.
Sex -- 1 This field is used to identify the sex of the insured. For
Joint Life policies, this field contains the sex of
Insured 1.
Pricing Sex -- 1 This field contains the sex used to compute premiums and
allowances. For Joint Life policies, this field contains
the pricing sex of Insured 1.
Age -- 1 This field contains the insured's issue age. For Joint
Life policies, this field contains the issue age for
Insured 1.
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
101
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Class -- 1 This field contains the company's rating of
standard or preferred and the smoker class. For
Joint Life policies, this field contains the class
for Insured 1.
Mortality -- 1 This field contains the insured's mortality
rating. For Joint Life policies, this field
contains the mortality rating for Insured 1.
Mortality Duration -- 1 This field contains the duration of the insured's
mortality rating. For Joint Life policies, this
field contains the duration of the mortality
rating for Insured 1.
Temp Flat -- 1 This field contains the temporary flat extra per
1000. For Joint Life policies, this field contains
the temporary flat extra per 1000 for Insured 1.
Temp Duration -- 1 This field contains the number of years that the
temporary flat extra rating is being charged. For
Joint Life policies, this field contains the
number of years that the flat extra rating is
being charged for Insured 1.
Perm Flat -- 1 This field contains the permanent flat extra per
1000. For Joint Life policies, this field contains
the permanent flat extra per 1000 for Insured 1.
Perm Duration -- 1 This field contains the number of years that the
permanent flat extra rating is being charged. For
Joint Life policies, this field contains the
number of years that the flat extra rating is
being charged for Insured 1.
Last Name -- 2 This field contains the insured's last name. For
Joint Life policies, this field contains the last
name for Insured 2. (If this is not a Joint Life
policy, this field will be blank.) (Maximum of 20
characters)
First Name -- 2 This field contains the insured's first name. For
Joint Life policies, this field contains the first
name for Insured 2. (If this is not a Joint Life
policy, this field will be blank.) (Maximum of 15
characters)
Middle Initial -- 2 This field contains the insured's middle initial.
For Joint Life policies, this field contains the
middle initial for Insured 2. (If this is not a
Joint Life policy, this field will be blank.) (1
character)
Client ID -- 2 This field contains the unique client ID for an
insured used to connect lives when calculating
retention on a life. For Joint Life policies, this
field indicates the client ID for Insured 2. (If
this is not a Joint Life policy, this field will
be blank.) (Maximum of 20 characters)
Insured Status -- 2 This field indicates the insured's coverage
status. For Joint Life policies, this field
indicates the insured's coverage status for
Insured 2. (If this is not a Joint Life policy,
this field will be blank.)
DOB -- 2 This field contains the insured's date of birth.
For Joint Life policies, this field contains the
date of birth for Insured 2. (If this is not a
Joint Life policy, this field will be blank.)
Sex -- 2 This field is used to identify the sex of the
insured. For Joint Life policies, this field
contains the sex of Insured 2. (If this is not a
Joint Life policy, this field will be blank.)
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
102
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Pricing Sex -- 2 This field contains the sex used to compute
premiums and allowances. For Joint Life policies,
this field contains the pricing sex of Insured 2.
(If this is not a Joint Life policy, this field
will be blank.)
Age -- 2 This field contains the insured's issue age. For
Joint Life policies, this field contains the issue
age for Insured 2. (If this is not a Joint Life
policy, this field will be blank.)
Class -- 2 This field contains the company's rating of
standard or preferred and the smoker class. For
Joint Life policies, this field contains the class
for Insured 2. (If this is not a Joint Life
policy, this field will be blank.)
Mortality -- 2 This field contains the insured's mortality
rating. For Joint Life policies, this field
contains the mortality rating for Insured 2. (If
this is not a Joint Life policy, this field will
be blank.)
Mortality Duration -- 2 This field contains the duration of the insured's
mortality rating. For Joint Life policies, this
field contains the duration of the mortality
rating for Insured 2. (If this is not a Joint Life
policy, this field will be blank.)
Temp Flat -- 2 This field contains the temporary flat extra per
1000. For Joint Life policies, this field contains
the temporary flat extra per 1000 for Insured 2.
(If this is not a Joint Life policy, this field
will be blank.)
Temp Duration -- 2 This field contains the number of years that the
temporary flat extra rating is being charged. For
Joint Life policies, this field contains the
number of years that the flat extra rating is
being charged for Insured 2. (If this is not a
Joint Life policy, this field will be blank.)
Perm Flat -- 2 This field contains the permanent flat extra per
1000. For Joint Life policies, this field contains
the permanent flat extra per 1000 for Insured 2.
(If this is not a Joint Life policy, this field
will be blank.)
Perm Duration -- 2 This field contains the number of years that the
permanent flat extra rating is being charged. For
Joint Life policies, this field contains the
number of years that the flat extra rating is
being charged for Insured 2. (If this is not a
Joint Life policy, this field will be blank.)
Policy Face Amount Indicates the face amount of the total policy.
Retained Amount This field contains the amount retained on this
policy coverage, not on the life.
Ceded Amount This field contains the policy amount ceded to a
specific reinsurer.
Net Amount at Risk This field contains the reinsured net amount at
risk (NAR) for a specific reinsurer.
Benefit Mortality ADB or Waiver mortality.
Premium This field contains the reinsurance premium.
Allowance This field contains the reinsurance allowance.
Flat extra type This field indicates whether there is a temporary
flat extra (T) or a permanent flat extra (P) being
charged.
Premium Tax If premium tax is reimbursed, this field contains
the tax amount.
Cash Value If applicable, this field is used to recover
coinsured cash values from the Reinsurer.
Benefit If applicable, this field is used to recover
benefits from the Reinsurer.
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
103
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Dividend If applicable, this field contains the
reinsurer's share of the direct dividend.
Policy Fee This field contains the reinsurance policy fee.
Continuation Original Company This field indicates the ceding company on the
original policy. (Used for conversions only.)
Continuation Original Policy This field indicates the policy number for the
original policy. (Used for conversions only.)
Continuation Original This field indicates the coverage/rider for the
Coverage/Rider original policy. (Used for conversions only.)
Message An informational message may be manually added
to a policy by the Ceding Company.
Image switch Hartford does not currently use. Defaults to
spaces.
Policy Fee Allowance This field contains the reinsurance policy fee
allowance.
Location Code Hartford does not currently use. Defaults to
spaces.
Treaty Reference Number Upon request, this field contains the
Reinsurer's treaty number.
Claim Hartford does not currently use. Defaults to
spaces.
Policy Status This field identifies the status of the cession.
Policy Master Smoker -- 1 Policy smoker class on direct policy. For Joint
Life policies, this field contains the policy
master smoker class for Insured 1.
Policy Master Smoker -- 2 Policy smoker class on direct policy. For Joint
Life policies, this field contains the policy
master smoker class for Insured 2. (If this is
not a Joint Life policy, this field will be
blank.)
Policy Effective Date This field contains the issue date of the
reinsurance.
Policy Application Date This field indicates the date the insured signed
the application.
NAR Type This field indicates the method used in
determining the Total Net Amount at Risk (as
defined in Schedule B).
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
104
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
POLICY EXHIBIT FILE*
Company Identifies the Ceding Company.
Policy Policy number which is part of the policy key.
Coverage/rider Coverage number which is part of the policy key. This
number is used to identify a specific policy coverage.
Cession ID This field contains the number assigned to this cession by
the Reinsurer.
Line of Business This field indicates the line of business the policy falls
under.
Report Date This is the month the transaction was reported.
Reinsurance Company Two character reinsurance company ID code that identifies
the Reinsurer.
Reporting Company Identifies the company used for reporting purposes. Will
be the same as the Reinsurance Company.
Treaty Number This field contains the TAI system treaty number.
Transaction Type Identifies the type of transaction being reported on the
Transaction extract.
Policy Count Each New Business, Continuation & Reinstatement will be
assigned a count of 1, Terminations will be assigned -1
and Renewals/NAR changes will be assigned 0.
Base Ceded Amount This field contains the policy base amount ceded.
ADB ceded Amount This field contains the policy ADB amount ceded.
Waiver Ceded Amount This field contains the policy waiver amount ceded.
Net Amount at Risk The reinsured net amount at risk (NAR).
Plan This field contains the coverage plan code.
Auto/Fac Indicator Indicates whether the policy is ceded on an Automatic or
Facultative basis.
Reinsurance Type This field is a one-character code that identifies the
type of reinsurance. (Y=YRT, C=Coinsurance & M=Modco.)
Currency Code This field identifies the currency. (USD or CND if
applicable)
------------
* The Policy Exhibit will include a summary of reinsurance movement for a
given period categorized by transactions type. This summary provides the
Cession Count, Ceded Amount and Net Amount at Risk at the beginning of the
reporting period, a summary of the transactions occurring during the report
period as well as what is in force as of the ending of the report period.
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
105
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
RESERVE FILE
Company Identifies the Ceding Company
Policy Policy number which is part of the policy key
Coverage/rider Coverage number which is part of the policy key. This
number is used to identify a specific policy coverage.
Cession ID This field contains the number assigned to this cession by
the Reinsurer
Benefit Type This field is the reserve type. 1 = Life, 2=ADB, 3=Waiver,
4=Flat Extras, 5=Substandard
Calc Method Hartford's TAI Valuation Method 1=Xxxxxxx Reserve + 1/2
cx, E=Coinsurance Reserve, H=Half Premium, L=Factor FLX1,
X=1/2 cx
Reinsurance Company Two character reinsurance company ID code that identifies
the Reinsurer.
Reporting Company Identifies the company used for reporting purposes. Will
be the same as the Reinsurance Company.
Line of Business This field indicates the line of business the policy falls
under. (L=Life)
Treaty Number This field contains the TAI system treaty number
Plan This field contains the coverage plan code.
Auto/Fac Indicator Indicates whether the policy is ceded on an Automatic or
Facultative basis.
Product code This field contains the product type code.
Joint Type Identifies Joint business Type
Joint Method Switch Identifies XXX Xxxxxxx method calculation
Mode Identifies the mode of reinsurance premium payment.
Cession Status This field identifies the status of the cession.
Reinsurance Type This field is a one-character code that identifies the
type of reinsurance.
Duration Contains the reinsurance duration. It may differ from the
policy duration if the cession is a continuation.
Participation code This field indicates whether the business is Non
participating (N) or Participating (P).
Issue Date This field contains the effective date of the policy.
Reinsurance To Date This field contains the end date of the period covered by
a record.
Policy Face Amount Indicates the face amount of the total policy.
Ceded Amount This field contains the policy amount ceded to a specific
reinsurer
Net Amount at Risk This field contains the reinsured net amount at risk (NAR)
for a specific reinsurer.
Premium This field contains the reinsurance premium.
Reserve Percent Value appears on Coinsurance business only
Cession Count Cession count only appears under Life (Base), not
benefits.
Age Basis Nearest/Closest (C), Last (L), Next (N)
Insured Status -- 1 This field indicates the insured's coverage status. For
Joint Life policies, this field indicates the insured's
coverage status for Insured 1.
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
106
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Age -- 1 This field contains the insured's issue age. For Joint
Life policies, this field contains the issue age for
Insured 1.
Class -- 1 This field contains the company's rating of standard or
preferred and the smoker class. For Joint Life policies,
this field contains the class for Insured 1.
Sex -- 1 This field is used to identify the sex of the insured. For
Joint Life policies, this field contains the sex of
Insured 1.
Mortality -- 1 This field contains the insured's mortality rating. For
Joint Life policies, this field contains the mortality
rating for Insured 1.
Insured Status -- 2 This field indicates the insured's coverage status. For
Joint Life policies, this field indicates the insured's
coverage status for Insured 2. (If this is not a Joint
Life policy, this field will be blank.)
Age -- 2 This field contains the insured's issue age. For Joint
Life policies, this field contains the issue age for
Insured 2. (If this is not a Joint Life policy, this field
will be blank.)
Class -- 2 This field contains the company's rating of standard or
preferred and the smoker class. For Joint Life policies,
this field contains the class for Insured 2. (If this is
not a Joint Life policy, this field will be blank.)
Sex -- 2 This field is used to identify the sex of the insured. For
Joint Life policies, this field contains the sex of
Insured 2. (If this is not a Joint Life policy, this field
will be blank.)
Mortality -- 2 This field contains the insured's mortality rating. For
Joint Life policies, this field contains the mortality
rating for Insured 2. (If this is not a Joint Life policy,
this field will be blank.)
Reserve Statutory or Tax Reserve for each coverage.
Reserve Interest This field identifies the Interest Rate used when
Rate calculating reserves.
Reserve Factor Applicable Mortality Basis YRT Factor
Factor Pointer TAI specific field to identify applicable mortality table
used when calculating reserves.
Attained Age TAI specific field. Default is 1
Setback TAI specific field. Default is zero
Class Switch TAI specific field. Valuation Class (D=Distinct)
Curtate Switch This field indicates whether reserves are on a curtate or
continuous basis.
Caption Hartford's TAI Valuation Method
Error Code Informational field used by Hartford -- Usually Blank
Reserve Class 1 This field contains insured's smoker class. For Joint Life
policies, this field contains the class for Insured 1.
Reserve Class 2 This field contains insured's smoker class. For Joint Life
policies, this field contains the class for Insured 2. (If
this is not a Joint Life policy, this field will be
blank.)
Currency Code This field identifies the currency. (USD or CND if
applicable)
Valuation Interest TAI assigned field that is used to read applicable
Pointer interest rates when calculating 1/2 cx reserves.
NAR Type This field indicates the method used in determining the
Total Net Amount at Risk (as defined in Schedule B).
Allocated Retention Pool (Non-Excess Risks) -- Effective October 1, 0000
Xxxxxxx Xxxxxx Life and HLAIC
107
AMENDMENT 1
EFFECTIVE OCTOBER 1, 2008
TO THE
AUTOMATIC MONTHLY RENEWABLE TERM
REINSURANCE
AGREEMENT FOR NON-EXCESS RISKS
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
THE CANADA LIFE ASSURANCE COMPANY ("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer (collectively, the "Parties")
agree that the Agreement was implemented using YRT Reinsurance Rate Factors
("Factors") which proved to be incorrect; and
WHEREAS, the Parties have agreed to incorporate revised Factors as shown in the
attached Exhibit IV as of October 1, 2008, with the revised Factors being
implemented as follows:
(a) For billing transactions appearing in the November 2010 reinsurance
billing statement and thereafter, the Ceding Company will apply the
revised Factors; and
(b) For billing transactions reported to the Reinsurer prior to the
November 2010 reinsurance billing statement, the Ceding Company shall
remit to the Reinsurer a one-time payment in the amount of ,
no later than January 31, 2011, to correct the discrepancy which
resulted from the Ceding Company's application of the initial
Factors; and
WHEREAS, the Parties acknowledge that the payment represents an aggregate
correction for the following agreements, all effective October 1, 2008:
(a) Automatic Monthly Renewable Term Reinsurance for Non-Excess Risks
between Hartford Life and Annuity Insurance Company and The Canada
Life Assurance Company;
(b) Automatic Monthly Renewable Term Reinsurance for Non-Excess Risks
between Hartford Life Insurance Company and The Canada Life Assurance
Company;
Allocated Retention Pool (Non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 1 -- Effective 10/01/2008
1
(c) Automatic and Facultative Monthly Renewable Term
Reinsurance
Agreement for Excess Risks between Hartford Life and Annuity
Insurance Company and The Canada Life Assurance Company; and
(d) Automatic and Facultative Monthly Renewable Term
Reinsurance
Agreement for Excess Risks between Hartford Life Insurance Company
and The Canada Life Assurance Company; and
WHEREAS, the Parties agree that this payment shall represent a full and final
settlement regarding this matter; and
WHEREAS, the Parties acknowledge that the Ceding Company will not alter its
administrative systems to reflect this recalculation of premium prior to the
November 2010 reinsurance billing and that this may result in a discrepancy if
an audit of the business reinsured is conducted.
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
1. The above recitals are true and accurate and are incorporated
herein.
2. Exhibit IV is deleted in its entirety and replaced with the attached
Exhibit IV.
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
In witness of the foregoing, the Parties have, by their respective officers,
executed this Amendment in duplicate, each of which shall be deemed an original
but both of which together shall constitute one and the same instrument, on the
dates indicated below, with an effective date of October 1, 2008.
THE CANADA LIFE ASSURANCE COMPANY
By: /s/ Xxxxxx Xxxxxx By: /s/ Xxxx-Xxxxxxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxx Xxxxxx Name: Xxxx-Xxxxxxxx Xxxxxx
Title: Senior Vice President, Title: Senior Vice President,
[ILLEGIBLE] Life Reinsurance
Date: December 23/10 Date: December 28, 2010
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxxx Xxxxxxxxx Attest: /s/ Xxxxxxx Xxxxxx
-------------------------------- ------------------------------
Name: Xxxxxxx Xxxxxxxxx, FSA, MAAA Name: Xxxxxxx Xxxxxx, FSA, MAAA
Title: Assistant Vice President Title: Senior Vice President
and Actuary Individual Life Individual Life Product
Product Management Management
Date: 12/22/2010 Date: 12/22/2010
Allocated Retention Pool (Non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 1 -- Effective 10/01/2008
2
EXHIBIT IV
YRT REINSURANCE RATE FACTORS
CORRECTED EFFECTIVE OCTOBER 1, 2008
YRT REINSURANCE RATE FACTORS (SEE EXHIBIT I FOR USAGE)
For Automatic Reinsurance under this Agreement, Table 1 applies for all coverage
years on Reinsured Net Amount at Risk (ReinsNAR) for portions of face amount not
exceeding Total Allocation Limit (TAL).
For Single Life Plans, use applicable factor for issue age, gender, and risk
class from tables above.
For Last Survivor Plans, use (applicable factor for issue age, gender, and risk
class from tables above) x (applicable Last Survivor Factor LSF for gender and
risk class from tables above).
For Life Solutions II UL plans, YRT Reinsurance Rate Factors will be determined
as follows:
(1) For "Preferred" policies, use the SNN rate class; and
(2) For "Standard" policies, use the SN rate class.
Note: If the YRT Reinsurance Rate Factors or the Annual Rates per $1,000 shown
in Exhibit III of this Agreement are changed, the Ceding Company and the
Reinsurer will determine whether the Annual Rates per $1,000 or YRT Reinsurance
Rate Factors for the Excess Risks agreement need to be changed.
Allocated Retention Pool (Non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 1 -- Effective 10/01/2008
3
AMENDMENT 2
EFFECTIVE JULY 1, 2009
TO THE
AUTOMATIC MONTHLY RENEWABLE TERM
REINSURANCE AGREEMENT
FOR NON-EXCESS RISKS
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
THE CANADA LIFE ASSURANCE COMPANY ("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
include certain policies which were issued by the Ceding Company between October
1, 2008 and March 1, 2009 and ceded to the Reinsurer under the applicable
reinsurance treaty that was accepting new business on those dates; and
WHEREAS, the policies qualified as special cessions based on the following
criteria:
a. The issue age of the insured is not greater than 70;
b. The risk class is not higher than Table F;
c. The total face amount of the policy, when added to any amounts
currently retained by the Ceding Company on the life of the
insured, exceeds $10,000,000; and
d. The selling broker has requested that the Ceding Company retain its
maximum liability on the policy and the Ceding Company has agreed
to the request in writing.
NOW, THEREFORE for good and valuable consideration, receipt of which is hereby
acknowledged,
1. The Ceding Company shall cede and the Reinsurer shall accept the
risk on the following policies on an automatic basis, effective as
of the reinsurance effective dates specified below, in accordance
with the terms of this Agreement; and
2. Reinsurance Premiums for such policies shall be calculated on a
point-in-scale basis in accordance with Exhibit I.
Allocated Retention Pool (non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 2 - Effective 7/01/2009
1
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate, each of which shall
be deemed an original but both of which together shall constitute one and the
same instrument, on the dates indicated below, with an effective date of July 1,
2009.
THE CANADA LIFE ASSURANCE COMPANY
By: /s/ Xxxxxx Xxxxxx By: /s/ Xxxx-Xxxxxxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxx Xxxxxx, FSA, FCIA, MAAA Name: Xxxx-Xxxxxxxx Xxxxxx, FSA,
FCIA
Title: Senior Vice-President Life Title: Senior Vice President Life
Reinsurance Reinsurance
Date: March 22, 2011 Date: March 23, 2011
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxxx Xxxxxxxxx Attest: /s/ Xxxxxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxxx Xxxxxxxxx, FSA, MAAA Name: Xxxxxxx Xxxxxx, FSA, MAAA
Title: Assistant Vice President and Title: Senior Vice President
Actuary Individual Life Individual Life Product
Product Management Management
Date: 3/31/2011 Date: 3/31/2011
Allocated Retention Pool (non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 2 - Effective 7/01/2009
2
AMENDMENT 3
EFFECTIVE OCTOBER 1, 2008
TO THE
AUTOMATIC MONTHLY RENEWABLE TERM
REINSURANCE AGREEMENT
FOR NON-EXCESS RISKS
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
THE CANADA LIFE ASSURANCE COMPANY ("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer now wish to amend the Agreement to
include certain policies which
- Were issued between October 1, 2008 and February 28, 2009; and
- Were part of replacement transactions; and
- At time of issue did not satisfy the criteria for rollover processing
and did not qualify for reinsurance under the Agreement; and
- Now qualify for reinsurance under the Agreement.
NOW, THEREFORE for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
1. The above recitals are true and accurate and are incorporated
herein.
2. The Ceding Company shall cede and the Reinsurer shall accept, on an
Automatic Reinsurance basis, the risk on the policies listed in the
table, below, effective as of the reinsurance effective dates
specified, in accordance with the terms of this Agreement; and
3. Reinsurance Premiums for such policies shall be calculated from
their effective dates in accordance with Exhibit I.
4. Except as herein amended, all other terms and conditions of the
Agreement shall remain in full force and effect and unchanged.
Allocated Retention Pool (non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment # 3 -- Effective 10/1/2008
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of October 1, 2008.
THE CANADA LIFE ASSURANCE COMPANY
By: /s/ Xxxxxx Xxxxxx By: /s/ Xxxx-Xxxxxxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxx Xxxxxx, FSA, FCIA, MAAA Name: Xxxx-Xxxxxxxx Xxxxxx
Title: Senior Vice-President Life Title: Senior Vice-President, Life
Reinsurance Reinsurance
Date: July 18, 2011 Date: July 25, 2011
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxx Xxxxxxx Attest: /s/ Xxxxxxx X. Xxxxxx
------------------------------ ------------------------------
Name: Xxxx Xxxxxxx Name: Xxxxxxx X. Xxxxxx
Title: Assistant Vice President & Title: Senior Vice President &
Actuary Actuary
Date: August 11, 2011 Date: 8/11/2011
Allocated Retention Pool (non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment # 3 -- Effective 10/1/2008
2
AMENDMENT 4
EFFECTIVE OCTOBER 1, 2008
TO THE
AUTOMATIC MONTHLY RENEWABLE TERM
REINSURANCE AGREEMENT FOR NON-EXCESS RISKS
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
THE CANADA LIFE ASSURANCE COMPANY ("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to clarify the administrative
implications of the Reinsurer's liability for riders or policy features that
accelerate the death benefit; and
WHEREAS, the Ceding Company and the Reinsurer wish to replace Exhibit VII to
reflect updated definitions.
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer agree as follows:
1. The above recitals are true and accurate and are incorporated herein.
2. Section IV.D is hereby deleted in its entirety and replaced with the
following Section IV.D:
D. The Reinsurer's liability for reinsurance on each risk will terminate
when the Ceding Company's liability terminates, unless it terminates
earlier as specified otherwise in this Agreement. Notwithstanding the
foregoing, if the Ceding Company's liability on a risk terminates as
a result of acceleration in accordance with a Rider, the Reinsurer's
liability on such risk will terminate following the death of the
insured and the Reinsurer's payment to the Ceding Company of its
share of the death benefit on such risk.
3. Section X.D. is hereby deleted in its entirety and replaced with the
following Section X.D.:
D. Policy Terminations and Lapses
If a policy reinsured under this Agreement terminates, the reinsurance
for the risk will terminate as of the effective date of policy
termination. For a policy terminated due to the expiry of any grace
period for an unpaid amount, the effective date of termination for
such policy will be the date such unpaid amount was first due.
Allocated Retention Pool (Non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 4 - Effective 10/01/2008
1
Notwithstanding the foregoing, if a policy is deemed to have terminated as
a result of full acceleration of the death benefit, the corresponding
reinsurance on the policy will continue as specified in Section IV.D.
If a policy reinsured under this Agreement lapses to extended term
insurance under the terms of that policy, the corresponding reinsurance on
the reinsured policy will continue on the same basis as the original
reinsurance until the expiry of the extended term period.
If a policy reinsured under this Agreement lapses to reduced paid-up
insurance under the terms of that policy, the amount of the corresponding
reinsurance on the reinsured policy will be reduced according to the terms
of Section B.2.
If the Ceding Company allows a policy reinsured under this Agreement to
remain in force under its automatic premium loan provisions, the
corresponding reinsurance on the reinsured policy will continue unchanged
and in force as long as such provisions remain in effect, except as
otherwise provided in this Agreement.
4. Schedule B is hereby deleted in its entirety and replaced with the
attached, revised Schedule B.
5. Exhibit VII is hereby deleted in its entirety and replaced with the
attached, revised Exhibit VII.
6. Except as herein amended, all other terms and conditions of the Agreement
shall remain in full force and effect and unchanged.
Allocated Retention Pool (Non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 4 - Effective 10/01/2008
2
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below.
THE CANADA LIFE ASSURANCE COMPANY
By: /s/ Xxxxxx Xxxxxx By: /s/ Xxxx-Xxxxxxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxx Xxxxxx, FSA, FCIA, MAAA Name: Xxxx-Xxxxxxxx Xxxxxx, FSA,
FCIA
Title: Senior Vice-President Title: Senior Vice President
Life Reinsurance Life Reinsurance
Date: October 27 2011 Date: October 28, 2011
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxx Xxxxxxx Attest: /s/ Xxxxxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxx Xxxxxxx, FSA, MAAA Name: Xxxxxxx Xxxxxx, FSA, MAAA
Title: Assistant Vice President and Title: Senior Vice President
Actuary Individual Life Individual Life Product
Product Management Management
Date: November 29, 2011 Date: 12/2/11
Allocated Retention Pool (Non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 4 - Effective 10/01/2008
3
SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
AUTOMATIC REINSURANCE: The Ceding Company shall retain its available retention
on each risk, defined below as the Retained Net Amount at Risk, subject to the
applicable Ceding Company's Treaty Retention Limit shown in Exhibit II.
The Reinsurer will automatically reinsure a portion of the remainder of the
risk, called the Reinsured Net Amount at Risk, as defined below in this Schedule
B, not to exceed the Reinsurer's Maximum Automatic Participation Limit, as set
forth in Exhibit II.
TOTAL ALLOCATION LIMIT (TAL): As shown in Exhibit II.
CEDING COMPANY'S TREATY RETENTION LIMIT (CCTRL): As shown in Exhibit II.
CEDING COMPANY'S ALLOCATED RETENTION (CCAR): As shown in Exhibit II.
CURRENT RETENTION (CURRRET) = Current amount of life insurance retained by the
Ceding Company and its affiliated companies on the life for in-force life
insurance coverage. (For Last Survivor risks, see the Last Survivor Limits and
Retention Worksheet in Exhibit II.)
REINSURER'S ALLOCATED RETENTION (REINSARET): As shown in Exhibit II.
REINSURER'S ATTACHMENT POINT (REINSAPT): As shown in Exhibit II.
NAR TYPE for the Plan of Insurance to be reinsured under this Agreement, as
shown in Schedule A.
STEP 1 -- DETERMINE TOTAL NET AMOUNT AT RISK FOR THE COVERAGE
TOTAL NET AMOUNT AT RISK (TOTNAR)* =
For NAR TYPE A, Death Benefit minus the Account Value.
For NAR TYPE B, Death Benefit minus the Working Reserve, where
Working Reserve = (i) x (ii)/(iii), and
Allocated Retention Pool (Non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 4 - Effective 10/01/2008
4
SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
For NAR TYPE C, Death Benefit.
* In cases where the current Working Reserve is not available, the Ceding
Company may estimate such amount using either the most recent Working
Reserve or the Account Value.
STEP 2 -- DETERMINE NET AMOUNT AT RISK FOR EACH "LAYER" OF COVERAGE
STEP 3 -- DETERMINE THE NAR FOR THE CEDING COMPANY AND THEN FOR THE REINSURER
MINIMUM AUTOMATIC REINSURANCE CESSION:
Allocated Retention Pool (Non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 4 - Effective 10/01/2008
5
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
REPORT ACCOUNTING PERIOD DUE DATE
---------------------------------------------------------------------------------------------------------------
1. New Business* Monthly 30th day after month end
(New issues only -- first time policy reported to the
Reinsurer)
2. Renewal Business* Monthly 30th day after month end
(Policies with renewal dates within the Accounting
Period)
3. Changes & Terminations* Monthly 30th day after month end
(includes conversions, replacements reinstatements,
increases, decreases, recaptures, lapses, claims, etc.)
4. Inforce List Monthly 30th day after month end
(Listing of each policy in force)
5. Statutory Reserves Quarterly 30th day after quarter end
6. Policy Exhibit Monthly 30th day after month end
* Policy record details for new business, renewal business, and changes and
terminations (Reports 1, 2, and 3 above) may be reported as separate reports
or combined into one report, provided the required data elements continue to
be satisfied.
REPORTING SYSTEM:
The system used by the Ceding Company to administer its reinsurance is: TAI.
NOTE:
Certain policy transactions, such as increases, are coded in the policy
administration system as riders, although they do not correspond to filed rider
forms.
Allocated Retention Pool (Non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 4 - Effective 10/01/2008
6
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
MINIMUM DATA REQUIREMENTS
INFORCE AND TRANSACTION FILE
Company Identifies the Ceding Company
Policy Policy number which is part of the policy key
Coverage/rider Coverage number which is part of the policy key. This number is used to identify
specific policy coverage.
Cession ID This field contains the number assigned to this cession by the Reinsurer
Transaction Sequence This field indicates the transaction record(s) created during the month.
Line of Business This field indicates the line of business the policy falls under.
Reinsurance Company Two character reinsurance company ID code that identifies the Reinsurer.
Reporting Company Identifies the company used for reporting purposes. Will be the same as the
Reinsurance Company.
Transaction Type Identifies the type of transaction being reported on the Transaction extract.
Transaction Count This field is used on the Transaction extract to identify the addition or termination
of a cession.
Reinsurance From Date This field contains the beginning date of the period covered by this record. The
premiums on the Transaction record cover the period beginning with the From Date
through the To Date.
Reinsurance To Date This field contains the end date of the period covered by a record.
Date Reported On the Transaction extract, this is the month the transaction was reported.
Mode Identifies the mode of reinsurance premium payment.
Policy Duration The duration at issue is 01.
Reinsurance Duration Contains the reinsurance duration. It may differ from the policy duration if the
cession is a continuation.
Cession Number Hartford does not currently use. Defaults to spaces.
Policy Date This field contains the effective date of the policy.
Reinsurance Date This field contains the effective date of the reinsurance. For most cessions it is
the same as the Policy Date. For continuations, it contains the effective date of the
original coverage.
Issue State This field contains a two-letter abbreviation of the state or province of issue. Used
to determine unisex rates.
Resident State This field contains a two-letter abbreviation of the state or province of issue. Used
to compute premium tax reimbursement if applicable.
Joint Type Identifies Joint business type
Allocated Retention Pool (Non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 4 - Effective 10/01/2008
7
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Joint Age Used for joint coverages using a joint equivalent age for rate searches.
Auto/Fac Indicator Indicates whether the policy is ceded on an Automatic or Facultative basis.
Death Benefit Option This field contains the option chosen by the insured for death proceeds payment.
Participation code This field indicates whether the business is Non Participating (N) or Participating
(P).
Issue Type Identifies how a cession was issued. (New business or Continuation)
Underwriting Method Identifies the type of underwriting used to issue the coverage.
Treaty Number This field contains the TAI system treaty number
Reinsurance Type This field is a one-character code that identifies the type of reinsurance. (Y=YRT,
C=Coinsurance & M=Modco.)
Plan This field contains the coverage plan code.
Product code This field contains the product type code.
Product code 1 For Joint Life policies, this field contains the product type code for Insured 1.
Product code 2 For Joint Life policies, this field contains the product type code for Insured 2. (If
this is not a Joint Life policy, this field will be blank.)
Currency Code This field identifies the currency.(USD or CND if applicable)
Last Name -- 1 This field contains the insured's last name. For Joint Life policies, this field
contains the last name for Insured 1. (Maximum of 20 characters)
First Name -- 1 This field contains the insured's first name. For Joint Life policies, this field
contains the first name for Insured 1. (Maximum of 15 characters)
Middle Initial -- 1 This field contains the insured's middle initial. For Joint Life policies, this field
contains the middle initial for Insured 1. (1 character)
Client ID -- 1 This field contains the unique client ID for an insured used to connect lives when
calculating retention on a life. For Joint Life policies, this field indicates the
client ID for Insured 1. (Maximum of 20 characters)
Insured Status -- 1 This field indicates the insured's coverage status. For Joint Life policies, this
field indicates the insured's coverage status for Insured 1.
DOB -- 1 This field contains the insured's date of birth. For Joint Life policies, this field
contains the date of birth for Insured 1.
Sex -- 1 This field is used to identify the sex of the insured. For Joint Life policies, this
field contains the sex of Insured 1.
Pricing Sex -- 1 This field contains the sex used to compute premiums and allowances. For Joint Life
policies, this field contains the pricing sex of Insured 1.
Age -- 1 This field contains the insured's issue age. For Joint Life policies, this field
contains the issue age for Insured 1.
Allocated Retention Pool (Non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 4 - Effective 10/01/2008
8
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Class -- 1 This field contains the company's rating of standard or preferred and the
smoker class. For Joint Life policies, this field contains the class for
Insured 1.
Mortality -- 1 This field contains the insured's mortality rating. For Joint Life
policies, this field contains the mortality rating for Insured 1.
Mortality Duration -- 1 This field contains the duration of the insured's mortality rating. For
Joint Life policies, this field contains the duration of the mortality
rating for Insured 1.
Temp Flat -- 1 This field contains the temporary flat extra per 1000. For Joint Life
policies, this field contains the temporary flat extra per 1000 for Insured
1.
Temp Duration -- 1 This field contains the number of years that the temporary flat extra
rating is being charged. For Joint Life policies, this field contains the
number of years that the flat extra rating is being charged for Insured 1.
Perm Flat -- 1 This field contains the permanent flat extra per 1000. For Joint Life
policies, this field contains the permanent flat extra per 1000 for Insured
1.
Perm Duration -- 1 This field contains the number of years that the permanent flat extra
rating is being charged. For Joint Life policies, this field contains the
number of years that the flat extra rating is being charged for Insured 1.
Last Name -- 2 This field contains the insured's last name. For Joint Life policies, this
field contains the last name for Insured 2. (If this is not a Joint Life
policy, this field will be blank.) (Maximum of 20 characters)
First Name -- 2 This field contains the insured's first name. For Joint Life policies, this
field contains the first name for Insured 2. (If this is not a Joint Life
policy, this field will be blank.) (Maximum of 15 characters)
Middle Initial -- 2 This field contains the insured's middle initial. For Joint Life policies,
this field contains the middle initial for Insured 2. (If this is not a
Joint Life policy, this field will be blank.) (1 character)
Client ID -- 2 This field contains the unique client ID for an insured used to connect
lives when calculating retention on a life. For Joint Life policies, this
field indicates the client ID for Insured 2. (If this is not a Joint Life
policy, this field will be blank.) (Maximum of 20 characters)
Insured Status -- 2 This field indicates the insured's coverage status. For Joint Life
policies, this field indicates the insured's coverage status for Insured 2.
(if this is not a Joint Life policy, this field will be blank.)
DOB -- 2 This field contains the insured's date of birth. For Joint Life policies,
this field contains the date of birth for Insured 2. (If this is not a
Joint Life policy, this field will be blank.)
Sex -- 2 This field is used to identify the sex of the insured. For Joint Life
policies, this field contains the sex of Insured 2. (If this is not a Joint
Life policy, this field will be blank.)
Allocated Retention Pool (Non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 4 - Effective 10/01/2008
9
Pricing Sex -- 2 This field contains the sex used to compute premiums and allowances. For
Joint Life policies, this field contains the pricing sex of Insured 2. (If
this is not a Joint Life policy, this field will be blank.)
Age -- 2 This field contains the insured's issue age. For Joint Life policies, this
field contains the issue age for Insured 2. (If this is not a Joint Life
policy, this field will be blank.)
Class -- 2 This field contains the company's rating of standard or preferred and the
smoker class. For Joint Life policies, this field contains the class for
Insured 2. (If this is not a Joint Life policy, this field will be blank.)
Mortality -- 2 This field contains the insured's mortality rating. For Joint Life
policies, this field contains the mortality rating for Insured 2. (If this
is not a Joint Life policy, this field will be blank.)
Mortality Duration -- 2 This field contains the duration of the insured's mortality rating. For
Joint Life policies, this field contains the duration of the mortality
rating for Insured 2. (If this is not a Joint Life policy, this field will
be blank.)
Temp Flat -- 2 This field contains the temporary flat extra per 1000. For Joint Life
policies, this field contains the temporary flat extra per 1000 for Insured
2. (If this is not a Joint Life policy, this field will be blank.)
Temp Duration -- 2 This field contains the number of years that the temporary flat extra
rating is being charged. For Joint Life policies, this field contains the
number of years that the flat extra rating is being charged for Insured 2.
(If this is not a Joint Life policy, this field will be blank.)
Perm Flat -- 2 This field contains the permanent flat extra per 1000. For Joint Life
policies, this field contains the permanent flat extra per 1000 for Insured
2. (If this is not a Joint Life policy, this field will be blank.)
Perm Duration - 2 This field contains the number of years that the permanent flat extra
rating is being charged. For Joint Life policies, this field contains the
number of years that the flat extra rating is being charged for Insured 2.
(If this is not a Joint Life policy, this field will be blank.)
Policy Face Amount Indicates the face amount of the total policy.
Retained Amount This field contains the amount retained on this policy coverage, not on the
life.
Ceded Amount This field contains the policy amount ceded to a specific reinsurer.
Net Amount at Risk This field contains the reinsured net amount at risk (NAR) for a specific
reinsurer.
Benefit Mortality ADB or Waiver mortality.
Premium This field contains the reinsurance premium.
Allowance This field contains the reinsurance allowance.
Flat extra type This field indicates whether there is a temporary flat extra (T) or a
permanent flat extra (P) being charged.
Premium Tax If premium tax is reimbursed, this field contains the tax amount.
Cash Value If applicable, this field is used to recover coinsured cash values from the
Reinsurer.
Benefit If applicable, this field is used to recover benefits from the Reinsurer.
Allocated Retention Pool (Non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 4 - Effective 10/01/2008
10
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Dividend If applicable, this field contains the
reinsurer's share of the direct dividend.
Policy Fee This field contains the reinsurance policy fee.
Continuation Original Company This field indicates the ceding company on the
original policy. (Used for conversions only.)
Continuation Original Policy This field indicates the policy number for the
original policy. (Used for conversions only.)
Continuation Original Coverage/Rider This field indicates the coverage/rider for the
original policy. (Used for conversions only.)
Message An informational message may be manually added
to a policy by the Ceding Company.
Image switch Hartford does not currently use. Defaults to
spaces.
Policy Fee Allowance This field contains the reinsurance policy fee
allowance.
Location Code Hartford does not currently use. Defaults to
spaces.
Treaty Reference Number Upon request, this field contains the
Reinsurer's treaty number.
Claim Hartford does not currently use. Defaults to
spaces.
Policy Status This field identifies the status of the cession.
Policy Master Smoker -- 1 Policy smoker class on direct policy. For Joint
Life policies, this field contains the policy
master smoker class for Insured 1.
Policy Master Smoker -- 2 Policy smoker class on direct policy. For Joint
Life policies, this field contains the policy
master smoker class for Insured 2. (If this is
not a Joint Life policy, this field will be
blank.)
Policy Effective Date This field contains the issue date of the
policy.
Policy Application Date This field indicates the date the insured signed
the application.
NAR Type This field indicates the method used in
determining the Total Net Amount at Risk (as
defined in Schedule B).
Allocated Retention Pool (Non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 4 - Effective 10/01/2008
11
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
POLICY EXHIBIT FILE*
Company Identifies the Ceding Company.
Policy Policy number which is part of the policy key.
Coverage/rider Coverage number which is part of the policy key.
This number is used to identify a specific
policy coverage.
Cession ID This field contains the number assigned to this
cession by the Reinsurer.
Line of Business This field indicates the line of business the
policy falls under.
Report Date This is the month the transaction was reported.
Reinsurance Company Two character reinsurance company ID code that
identifies the Reinsurer.
Reporting Company Identifies the company used for reporting
purposes. Will be the same as the Reinsurance
Company.
Treaty Number This field contains the TAI system treaty
number.
Transaction Type Identifies the type of transaction being
reported on the Transaction extract.
Policy Count Each New Business, Continuation & Reinstatement
will be assigned a count of 1, Terminations will
be assigned -1 and Renewals/NAR changes will be
assigned 0.
Base Ceded Amount This field contains the policy base amount
ceded.
ADB ceded Amount This field contains the policy ADB amount ceded.
Waiver Ceded Amount This field contains the policy waiver amount
ceded.
Net Amount at Risk The reinsured net amount at risk (NAR).
Plan This field contains the coverage plan code.
Auto/Fac Indicator Indicates whether the policy is ceded on an
Automatic or Facultative basis.
Reinsurance Type This field is a one-character code that
identifies the type of reinsurance. (Y=YRT,
C=Coinsurance & M=Modco.)
Currency Code This field identifies the currency. (USD or CND
if applicable)
* The Policy Exhibit will include a summary of reinsurance movement for a
given period categorized by transactions type. This summary provides the
Cession Count, Ceded Amount and Net Amount at Risk at the beginning of the
reporting period, a summary of the transactions occurring during the report
period as well as what is in force as of the ending of the report period.
Allocated Retention Pool (Non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 4 - Effective 10/01/2008
12
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
RESERVE FILE
Company Identifies the Ceding Company
Policy Policy number which is part of the policy key
Coverage/rider Coverage number which is part of the policy key. This number is used to identify a
specific policy coverage.
Cession ID This field contains the number assigned to this cession by the Reinsurer
Benefit Type This field is the reserve type. 1 = Life, 2=ADB, 3=Waiver, 4=Flat Extras,
5=Substandard
Calc Method Hartford's TAI Valuation Method 1=Xxxxxxx Reserve + 1/2 cx, E=Coinsurance Reserve,
H=Half Premium, L=Factor FLX1, X=1/2 cx
Reinsurance Company Two character reinsurance company ID code that identifies the Reinsurer.
Reporting Company Identifies the company used for reporting purposes. Will be the same as the
Reinsurance Company.
Line of Business This field indicates the line of business the policy falls under. (L=Life)
Treaty Number This field contains the TAI system treaty number
Plan This field contains the coverage plan code.
Auto/Fac Indicator Indicates whether the policy is ceded on an Automatic or Facultative basis.
Product code This field contains the product type code.
Joint Type Identifies Joint business Type
Joint Method Switch Identifies XXX Xxxxxxx method calculation
Mode Identifies the mode of reinsurance premium payment.
Cession Status This field identifies the status of the cession.
Reinsurance Type This field is a one-character code that identifies the type of reinsurance.
Duration Contains the reinsurance duration. It may differ from the policy duration if the
cession is a continuation.
Participation code This field indicates whether the business is Non participating (N) or Participating
(P).
Issue Date This field contains the effective date of the policy.
Reinsurance To Date This field contains the end date of the period covered by a record.
Policy Face Amount Indicates the face amount of the total policy.
Ceded Amount This field contains the policy amount ceded to a specific reinsurer
Net Amount at Risk This field contains the reinsured net amount at risk (NAR) for a specific reinsurer.
Premium This field contains the reinsurance premium.
Reserve Percent Value appears on Coinsurance business only
Cession Count Cession count only appears under Life (Base), not benefits.
Age Basis Nearest/Closest (C), Last (L), Next (N)
Insured Status -- 1 This field indicates the insured's coverage status. For Joint Life policies, this
field indicates the insured's coverage status for Insured 1.
Allocated Retention Pool (Non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 4 - Effective 10/01/2008
13
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Age -- 1 This field contains the insured's issue age. For Joint Life policies, this field
contains the issue age for Insured 1.
Class -- 1 This field contains the company's rating of standard or preferred and the smoker
class. For Joint Life policies, this field contains the class for Insured 1.
Sex -- 1 This field is used to identify the sex of the insured. For Joint Life policies,
this field contains the sex of Insured 1.
Mortality -- 1 This field contains the insured's mortality rating. For Joint Life policies, this
field contains the mortality rating for Insured 1.
Insured Status -- 2 This field indicates the insured's coverage status. For Joint Life policies, this
field indicates the insured's coverage status for Insured 2. (If this is not a
Joint Life policy, this field will be blank.)
Age -- 2 This field contains the insured's issue age. For Joint Life policies, this field
contains the issue age for Insured 2. (If this is not a Joint Life policy, this
field will be blank.)
Class -- 2 This field contains the company's rating of standard or preferred and the smoker
class. For Joint Life policies, this field contains the class for Insured 2. (If
this is not a Joint Life policy, this field will be blank.)
Sex -- 2 This field is used to identify the sex of the insured. For Joint Life policies,
this field contains the sex of Insured 2. (If this is not a Joint Life policy,
this field will be blank.)
Mortality -- 2 This field contains the insured's mortality rating. For Joint Life policies, this
field contains the mortality rating for Insured 2. (If this is not a Joint Life
policy, this field will be blank.)
Reserve Statutory or Tax Reserve for each coverage.
Reserve Interest Rate This field identifies the Interest Rate used when calculating reserves.
Reserve Factor Applicable Mortality Basis YRT Factor
Factor Pointer TAI specific field to identify applicable mortality table used when calculating
reserves.
Attained Age TAI specific field. Default is 1
Setback TAI specific field. Default is zero
Class Switch TAI specific field. Valuation Class (CD=Distinct)
Curtate Switch This field indicates whether reserves are on a curtate or continuous basis.
Caption Hartford's TAI Valuation Method
Error Code Informational field used by Hartford -- Usually Blank
Reserve Class 1 This field contains insured's smoker class. For Joint Life policies, this field
contains the class for Insured 1.
Reserve Class 2 This field contains insured's smoker class. For Joint Life policies, this field
contains the class for Insured 2. (If this is not a Joint Life policy, this field
will be blank.)
Currency Code This field identifies the currency. (USD or CND if applicable)
Valuation Interest Pointer TAI assigned field that is used to read applicable interest rates when calculating
1/2 cx reserves.
NAR Type This field indicates the method used in determining the Total Net Amount at Risk
(as defined in Schedule B).
Allocated Retention Pool (Non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 4 - Effective 10/01/2008
14
AMENDMENT 6
EFFECTIVE OCTOBER 3, 2011
TO THE
AUTOMATIC MONTHLY RENEWABLE TERM
REINSURANCE AGREEMENT FOR NON-EXCESS RISKS
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
THE CANADA LIFE ASSURANCE COMPANY ("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
reflect that the following Products and Riders were added to the Agreement as of
the Effective Date shown for each on Schedule A:
- Hartford Founders Plus UL
- Hartford Founders Plus UL Extended Value Option
- DisabilityAccess Rider
- LongevityAccess Rider
- LifeAccess Care Rider
- Joint LifeAccess Rider, and
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
1. The above recitals are true and accurate and are incorporated
herein.
2. Schedule A is deleted in its entirety and replaced with the attached
revised Schedule A.
3. Except as herein amended, all other terms and conditions of the
Agreement shall remain in full force and effect and unchanged.
Allocated Retention Pool (Non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 6 -- Effective 10/03/2011
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below.
THE CANADA LIFE ASSURANCE COMPANY
By: /s/ Xxxxxx Xxxxxx By: /s/ Xxxx-Xxxxxxxx Xxxxxx
------------------------------ -------------------------------
Name: Xxxxxx Xxxxxx, FSA, FCIA, MAAA Name: Xxxx-Xxxxxxxx Xxxxxx, FSA, FCIA
Title: Senior Vice-President Life Title: Senior Vice President Life
Reinsurance Reinsurance
Date: October 27 2011 Date: October 28, 2011
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxx Xxxxxxx Attest: /s/ Xxxxxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxx Xxxxxxx, FSA, MAAA Name: Xxxxxxx Xxxxxx, FSA, MAAA
Title: Assistant Vice President and Title: Senior Vice President
Actuary Individual Life Individual Life Product
Product Management Management
Date: November 29, 2011 Date: 12/2/11
Allocated Retention Pool (Non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 6 -- Effective 10/03/2011
2
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 3, 2011
SINGLE LIFE PLANS OF INSURANCE
NAR EFFECTIVE
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE* DATE**
----------------------------------------------------------------------------------------------------------
Stag UL 1980 CSO M/F S/NS Ultimate ALB A 10/01/2008
Hartford Bicentennial UL Founders 2001 CSO M/F S/NS Ultimate ANB A 10/01/2008
Hartford UL CV 1980 CSO M/F S/NS Ultimate ALB A 10/01/2008
Stag Wall Street VUL 1980 CSO M/F S/NS Ultimate ALB A 10/01/2008
Stag Protector II VUL 1980 CSO M/F S/NS Ultimate ALB A 10/01/2008
Hartford Leaders VUL Legacy 2001 CSO M/F Composite Ultimate ANB A 10/01/2008
Stag Accumulator II VUL 1980 CSO M/F Unismoke Ultimate ALB A 10/01/2008
Hartford Leaders VUL Liberty (a) 1980 CSO M/F Unismoke Ultimate ANB A 10/01/2008
Hartford Leaders VUL Liberty (b) 2001 CSO M/F Composite Ultimate ANB A 10/01/2008
Life Solutions II UL (a) 1980 CSO M/F S/NS Ultimate ALB A 10/01/2008
Life Solutions II UL (b) 2001 CSO M/F S/NS Ultimate ALB A 10/01/2008
Hartford Advanced Universal Life 2001 CSO M/F S/NS Ultimate ALB B 10/01/2008
Hartford Bicentennial UL Freedom (a) 2001 CSO M/F S/NS Ultimate ANB B 10/01/2008
Hartford Bicentennial UL Freedom (b) 2001 CSO M/F S/NS Ultimate ANB A 07/01/2010
Hartford Quantum II VUL (a) 2001 CSO M/F S/NS Ultimate ALB A 10/01/2008
Hartford Quantum II VUL (b) 2001 CSO M/F S/NS Ultimate ANB A 10/01/2008
Hartford ExtraOrdinary Whole Life (a) 2001 CSO M/F S/NS Ultimate ALB A 10/01/2008
Hartford ExtraOrdinary Whole Life (b) 2001 CSO M/F S/NS Ultimate ANB A 10/01/2008
Hartford Bicentennial XX Xxxxxxxx XX 0000 XXX X/X X/XX Xxxxxxxx ANB A 03/05/2010
Hartford Bicentennial XX Xxxxxxxx XX 0000 XXX X/X X/XX Xxxxxxxx ANB A 03/05/2010
Extended Value Option
Hartford Frontier Indexed Universal Life 2001 CSO M/F S/NS Ultimate ANB A 09/07/2010
Hartford Frontier Indexed Universal Life 2001 CSO M/F S/NS Ultimate ANB A 09/07/2010
Extended Value Option
Hartford Founders Plus UL 2001 CSO M/F S/NS Ultimate ANB A 10/03/2011
Hartford Founders Plus UL 2001 CSO M/F S/NS Ultimate ANB A 10/03/2011
Extended Value Option
------------
* NAR Type is described in Schedule B.
** Eligibility for new business is based on issue date on or after the
Effective Date shown.
RIDERS PROVIDING DEATH BENEFITS EFFECTIVE
THAT ARE ELIGIBLE FOR REINSURANCE DATE**
------------------------------------------------------------------------------------------------------
Primary Term Insured Rider 10/01/2008
Other Covered Insured Term Life Rider 10/01/2008
Cost of Living Adjustment (COLA) Rider 10/01/2008
NOTE: NAR Type for term riders above is C. For COLA Rider, NAR Type follows Base
Policy to which it is attached.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS EFFECTIVE
BUT THAT ARE NOT ELIGIBLE FOR REINSURANCE DATE**
------------------------------------------------------------------------------------------------------
Accidental Death Benefit (ADB) Rider 10/01/2008
Accelerated Benefit Rider (ABR) 10/01/2008
Allocated Retention Pool (Non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 6 -- Effective 10/03/2011
3
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 3, 2011
RIDERS THAT PROVIDE ADDITIONAL BENEFITS EFFECTIVE
BUT THAT ARE NOT ELIGIBLE FOR REINSURANCE (CONTINUED) DATE**
------------------------------------------------------------------------------------------------------
LifeAccess Accelerated Benefit Rider (LAABR) 10/01/2008
Policy Continuation Rider 10/01/2008
Policy Protection Rider (PPR) 10/01/2008
Enhanced No Lapse Guarantee Rider 10/01/2008
Lifetime No Lapse Guarantee Rider 10/01/2008
Guaranteed Minimum Accumulation Benefit (GMAB) Rider 10/01/2008
Paid-Up Life Insurance Rider 10/01/2008
Conversion Option Rider 10/01/2008
Overloan Protection Rider 10/01/2008
Waiver of Specified Amount (WSA) Rider 10/01/2008
Waiver of Monthly Deductions (WMD) Rider 10/01/2008
Children's Life Insurance Rider 10/01/2008
Foreign Travel Exclusion Rider 10/01/2008
Estate Tax Repeal Benefit Rider 10/01/2008
Modified Surrender Value Rider 10/01/2008
Cash Surrender Value Endorsement 10/01/2008
Automatic Premium Payment Rider 10/01/2008
Additional Premium Rider 10/01/2008
Qualified Plan Rider 10/01/2008
Owner Designated Settlement Option Rider 03/05/2010
DisabilityAccess Rider (DAR) 08/11/2009
LongevityAccess Rider 03/14/2011
LifeAccess Care Rider 04/11/2011
------------
** Eligibility for new business is based on issue date on or after the
Effective Date shown.
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING ADDITIONAL DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Primary Insured Term Rider: Provides additional level term life coverage on the
base policy insured.
Other Covered Insured Term Life Rider: Provides level term life coverage on an
insured other than the base policy insured.
Cost of Living Adjustment (COLA) RIDER: Provides for biennial face amount
increases, without underwriting, based on increases in the Consumer Price Index.
The maximum amount of any single increase is $50,000. Any increase can be
declined by the policyholder, which stops future increases. Available only at
issue and only for non-substandard issue ages 0 through 60.
Allocated Retention Pool (Non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 6 -- Effective 10/03/2011
4
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 3, 2011
RIDERS THAT PROVIDE ADDITIONAL BENEFITS THAT ARE NOT ELIGIBLE FOR REINSURANCE:
Accidental Death Benefit Rider: Pays an additional death benefit if the death on
the insured is caused by a qualifying accident.
Accelerated Benefit Rider: Provides the policyholder up to 100% of the death
benefit, discounted with interest, if the insured's life expectancy is 12 months
or less. After acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk as described
in Schedule B, and the Reinsurer shall be liable for such Reinsured Net Amount
at Risk upon the death of the insured.
LifeAccess Accelerated Benefit Rider (LAABR): Provides for monthly benefits (up
to 2% of death benefit) if insured meets certain ADL and home-care requirements.
In accordance with Schedule B, during and after acceleration, the Ceding Company
shall continue to pay the Reinsurer Reinsurance Premiums on the Reinsured Net
Amount at Risk based on the Death Benefit prior to acceleration, and the
Reinsurer shall be liable for such Reinsured Net Amount at Risk upon the death
of the insured.
Policy Continuation Rider: Intended to prevent the lapse of highly loaned
policies.
Policy Protection Rider: Protects the death benefit of the base policy and any
primary insured term rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Enhanced No Lapse Guarantee Rider: Provides that the policy will not lapse as
long as cumulative premiums paid less indebtedness less withdrawals are greater
than or equal to the cumulative no lapse guarantee premiums. Length of guarantee
varies by issue age.
Lifetime No Lapse Guarantee Rider: Same as Enhanced No Lapse Guarantee Rider but
with lifetime guarantee.
Guaranteed Minimum Accumulation Benefit (GMAB) Rider: Provides, at the end of
the GMAB Guarantee Period (usually 20 years), that the policy Account Value will
be increased, if necessary, to equal the sum of gross premiums paid to that
date. There is a small monthly charge and a minimum cumulative premium
requirement to keep the rider in force.
Paid-Up Life Insurance Rider: Similar to the GMAB rider, with the same Guarantee
Period, a monthly charge, and a cumulative premium requirement. At end of the
Guarantee Period, the owner may elect to change coverage to paid-up life using
the Account Value as a 5% NSP to determine the amount of coverage; however, the
amount of coverage will never be lower than the sum of gross premiums paid to
that date. Once elected, premiums are no longer payable.
Conversion Option Rider: During certain policy years and prior to the insured's
attained age 70, the policy may be converted, without evidence of insurability,
to any permanent plan of life insurance the Ceding Company then makes available
for conversions of this policy.
Overloan Protection Rider: Protects a policy from terminating due to overloan.
Waiver of Specified Amount (WSA) Rider: Waives a specified amount monthly while
the insured is disabled.
Allocated Retention Pool (Non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 6 -- Effective 10/03/2011
5
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 3, 2011
Waiver of Monthly Deductions (WMD) Rider: Waives monthly deduction amounts while
the insured is disabled.
Children's Life Insurance Rider: Provides level term life coverage for each
child of the insured.
Foreign Travel Exclusion Rider: Provides a limited death benefit (Account Value
less indebtedness) if the insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
Estate Tax Repeal Benefit Rider: Pays the policy Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Modified Surrender Value Rider: Changes the Cash Surrender Value definition (to
equal the Account Value) if the policy is surrendered within 3 years after the
policy issue date.
Cash Surrender Value Endorsement: Provides for enhanced Cash Surrender Value
(equal to the current Account Value) in the event of policy surrender in the
first 4 policy years, unless the policy is exchanged under Section 1035 to
another company's policy.
Automatic Premium Payment Rider: Provides for any Scheduled Premium due and
unpaid by the end of any Policy Grace Period to be paid by an automatic
deduction from the Account Value, if the Account Value exceeds the Guaranteed
Cash Value.
Additional Premium Rider: Allows additional premium amounts to be paid at the
same payment intervals as scheduled premiums.
Qualified Plan Rider: Indicates that the policy is owned by a qualified plan,
details the policy owner's reporting responsibilities to the Ceding Company, and
describes features and activities that are unavailable when the policy is owned
by a Qualified Plan.
Owner Designated Settlement Option Rider. Allows the policy owner to designate a
Settlement Option to be used for the payment of Death Proceeds.
DisabilityAccess Rider (DAR): Pays a monthly benefit upon disability of the
primary insured on the life insurance policy to which it is attached. The amount
of monthly benefit is permanently set at rider issue and is limited to a
24-month benefit period. The maximum monthly benefit amount is $5,000; it is
further limited to 2% of the initial face amount or 30% of monthly income at
policy issue. The minimum monthly benefit is $1,000.
LongevityAccess Rider: Provides for monthly benefits (up to 1% of death benefit)
when the insured reaches age 90 and meets the rider's eligibility requirements.
Includes a residual death benefit of 10% of the death benefit prior to
withdrawals. In accordance with Schedule B, during and after withdrawals, the
Ceding Company shall continue to pay the Reinsurer Reinsurance Premiums on the
Reinsured Net Amount at Risk based on the Death Benefit prior to withdrawals,
and the Reinsurer shall be liable for such Reinsured Net Amount at Risk upon the
death of the insured.
Allocated Retention Pool (Non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 6 -- Effective 10/03/2011
6
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 3, 2011
LifeAccess Care Rider: Similar to the LifeAccess Accelerated Benefit Rider, but
filed as a health product in some states. Provides for monthly benefits (up to
2% of death benefit) if insured meets certain ADL and home-care requirements.
LAST SURVIVOR PLANS OF INSURANCE
NAR EFFECTIVE
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE* DATE**
----------------------------------------------------------------------------------------------------------
Hartford Leaders VUL Joint Legacy 2001 CSO M/F S/NS Ultimate ALB A 10/01/2008
Hartford Leaders VUL Joint Legacy II 2001 CSO M/F S/NS Ultimate ANB A 10/01/2008
Hartford Advanced Last Survivor UL 2001 CSO M/F S/NS Ultimate ALB B 10/01/2008
Hartford Bicentennial XX Xxxxx Xxxxxxx 0000 XXX X/X X/XX Xxxxxxxx XXX X 10/01/2008
Hartford Bicentennial XX Xxxxx Xxxxxxx 0000 XXX X/X X/XX Xxxxxxxx ANB B 10/01/2008
II(a)
Hartford Bicentennial UL Joint Freedom 2001 CSO M/F S/NS Ultimate ANB A 07/01/2010
II(b)
------------
* NAR Type is described in Schedule B.
** Eligibility for new business is based on issue date on or after the
Effective Date shown.
RIDERS PROVIDING DEATH BENEFITS EFFECTIVE
THAT ARE ELIGIBLE FOR REINSURANCE DATE**
------------------------------------------------------------------------------------------------------
Estate Protection Rider (NAR Type is C) 10/01/2008
RIDERS THAT PROVIDE ADDITIONAL BENEFITS EFFECTIVE
BUT THAT ARE NOT ELIGIBLE FOR REINSURANCE DATE**
------------------------------------------------------------------------------------------------------
LS Exchange Option Rider 10/01/2008
Policy Protection Rider 10/01/2008
Estate Tax Repeal Rider 10/01/2008
Foreign Travel Exclusion Rider 10/01/2008
Guaranteed Minimum Accumulation Benefit (GMAB) Rider 10/01/2008
Paid-Up Life Insurance Rider 10/01/2008
Owner Designated Settlement Option Rider 03/05/2010
Joint LifeAccess Rider 01/31/2011
------------
** Eligibility for new business is based on issue date on or after the
Effective Date shown.
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Estate Protection Rider: This rider provides last survivor level term life
insurance on the base policy insureds for three years.
Allocated Retention Pool (Non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 6 -- Effective 10/03/2011
7
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 3, 2011
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
LS Exchange Option Rider: Allows a Last Survivor policy to be split into two
Single Life policies, without new evidence of insurability, if divorce, business
dissolution, or estate-tax repeal or reduction occurs. The face amount of each
new Single Life policy will equal one half of the Last Survivor policy face
amount. Upon a split, reinsurance will continue at point-in-scale rates for each
single life, as documented in Section X.C. (This rider is not available when one
of the insureds is uninsurable or above Table H.)
Policy Protection Rider: Protects the death benefit of the base policy and any
Estate Protection Rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Estate Tax Repeal Rider: Will pay the Account Value less indebtedness if the
Federal Estate Tax Law is fully repealed by December 31, 2010, and the Ceding
Company receives a request for this benefit amount from the policy owner.
Foreign Travel Exclusion: Provides a limited death benefit (Account Value less
indebtedness) if either insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
Guaranteed Minimum Accumulation Benefit Rider and Paid-Up Life Insurance Rider:
Same as Single Life riders.
Owner Designated Settlement Option Rider. Allows the policy owner to designate a
Settlement Option to be used for the payment of Death Proceeds.
Joint LifeAccess Rider: Similar to the LifeAccess Accelerated Benefit Rider.
Available only on Last Survivor products where the benefit will be payable for
the last surviving insured if chronically ill or if both insureds are
concurrently chronically ill.
Allocated Retention Pool (Non-Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 6 -- Effective 10/03/2011
8
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM
REINSURANCE AGREEMENT FOR EXCESS RISKS
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
(NAIC No. 71153)
(FEIN 00-0000000)
AND
THE CANADA LIFE ASSURANCE COMPANY
(NAIC No. 80659)
(FEIN 00-0000000)
EFFECTIVE DATE: OCTOBER 1, 2008
ARTICLES
I. The Agreement 3
II. Effective Date 3
III. Reinsurance Coverage 4
IV. Liability for Reinsurance 8
V. Underwriting Review 9
VI. Reinsurance Premiums 10
VII. Reinsurance Reporting 13
VIII. Credit for Reinsurance 13
IX. Errors 15
X. Policy Conversions, Other Changes, and Terminations 16
XI. Policy Reinstatement 19
XII. Claims 20
XIII. Extra-Contractual Obligations 24
XIV. DAC Tax Section 1.848-2(g)(8) Election 25
XV. Insolvency 26
XVI. Recapture of Reinsured Business 27
XVII. Offset 28
XVIII. Dispute Resolution 28
XIX. Arbitration 29
XX. Termination of this Agreement for New Business 30
XXI. Confidentiality 30
XXII. General Provisions 32
XXIII. Notices and Communications 36
Execution 37
SCHEDULES
A. Plans of Insurance Covered Under this Agreement 38
B. Reinsurance Specifications 45
C. Foreign National Underwriting Program 47
D. Special Underwriting Programs 50
E. Ceding Company's Standard Underwriting Practices and Guidelines 53
F. Policies Eligible for Reinsurance Under this Agreement 68
EXHIBITS
I. Reinsurance Premium Calculation 69
II. Retention, Binding, and Total Pool Issue Limits 73
III. Annual Rates per $1,000 of Reinsured Net Amount at Risk 77
IV. YRT Reinsurance Rate Factors 98
V. Substandard Table Percentages 100
VI. Conditional Receipt or Temporary Insurance Agreement 101
VII. Reinsurance Reports 105
ALL SCHEDULES AND EXHIBITS ATTACHED WILL BE CONSIDERED PART OF THIS REINSURANCE
AGREEMENT.
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
2
ARTICLE I
THE AGREEMENT
A. The Agreement and Parties to the Agreement
This is a monthly renewable term agreement for indemnity life reinsurance (the
"Agreement") solely between Hartford Life and Annuity Insurance Company, a
Connecticut corporation ("Ceding Company"), and The Canada Life Assurance
Company, a Canadian insurance company with its U.S. domestic port of entry in
the State of Michigan ("Reinsurer"). The Ceding Company and the Reinsurer are
each referred to individually as a "Party," and collectively as the "Parties,"
to this Agreement.
This Agreement shall be binding upon the Ceding Company and the Reinsurer and
their respective successors and assignees.
The acceptance of risks under this Agreement will create no right or legal
relationship between the Reinsurer and the insured, owner, beneficiary, or
assignee of any insurance policy or other contract of the Ceding Company. The
Ceding Company shall not attempt to make the Reinsurer a party to any litigation
between any third party and the Ceding Company.
B. Complete and Entire Agreement
This Agreement, which includes all Schedules and Exhibits attached hereto and
any amendments entered into hereafter, constitutes the entire agreement of the
Parties pertaining to the transaction contemplated by this Agreement. This
Agreement supersedes and replaces all oral and written agreements previously
made or existing by and between the Parties or their representatives with regard
to the transaction contemplated by this Agreement.
This Agreement shall not be amended or modified except by written amendment,
signed by duly authorized officers of each Party.
Notwithstanding the foregoing, the Parties contemplate that there may be
communications required under this Agreement that are not intended to change any
of its risk transfer characteristics. Such communications may include, but are
not limited to, reinsurance reporting and premium administration, underwriting
review, claim submission and review, participation in claim litigation and
settlements, audit reviews, and the resolution of disputes by arbitration or
court proceedings. These communications serve to clarify the obligations of the
Parties under this Agreement and should not be construed as modifications of
this Agreement. Any modifications of this Agreement shall be effected only by
written amendment as provided for above.
ARTICLE II
EFFECTIVE DATE
The Effective Date of this Agreement is October 1, 2008.
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
3
ARTICLE III
REINSURANCE COVERAGE
Reinsurance under this Agreement will apply to those Plans of Insurance and
Riders set forth in Schedule A that also fall within a category of policies
eligible for reinsurance under this Agreement as described in Schedule F. Such
reinsurance shall be either on an automatic basis, subject to the requirements
set forth in Section A below, on an automatic processing basis, subject to the
requirements set forth in Section B below, or on a facultative basis, subject to
the requirements set forth in Section C below. The specifications for all
reinsurance under this Agreement are provided in Schedule B.
A. Automatic Reinsurance
Automatic Reinsurance under this Agreement is available only for Excess Risks
that meet the other requirements of this Section A.
For each Excess Risk under the policies that meets the requirements for
Automatic Reinsurance as set forth below, the Reinsurer will participate in a
reinsurance pool whereby the Reinsurer will automatically reinsure a portion of
the risk as indicated in Schedule B ("Automatic Pool"). The requirements for
Automatic Reinsurance are as follows:
1. Each life, at the time of application, must satisfy one of the following
requirements:
a. have been a legal resident of the United States or Canada for at
least six months; or
b. be a citizen of the United States or Canada; or
c. qualify for the Foreign National Underwriting Program as specified
in Schedule C.
2. Each risk must be underwritten according to the Ceding Company's Standard
Underwriting Practices and Guidelines or one of the special underwriting
programs. The Ceding Company's Standard Underwriting Practices and Guidelines as
of the Effective Date are described in Schedule E, and the Ceding Company's
special underwriting programs as of the Effective Date are described in Schedule
C or Schedule D. Changes to such documents will be handled in accordance with
Section XXII.L, and may not necessarily result in an amendment to this
Agreement; however, changes to Preferred Criteria will require an amendment.
If the Ceding Company would like to offer coverage at a risk class more
favorable than the True Assessed Risk Class, the Ceding Company may:
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
4
a. Reinsure the risk automatically under this Agreement with
Reinsurance Premium based on the True Assessed Risk Class; or
b. Seek to reinsure the risk facultatively under this Agreement at rates
more favorable than the True Assessed Risk Class; or
c. Decide not to reinsure the risk under this Agreement.
For purposes of this Agreement, "True Assessed Risk Class" shall mean the risk
class assessed by the Ceding Company prior to any adjustments made as a result
of the Ceding Company's Enhanced Standard or similar special underwriting
program.
3. For Excess Risks, if any risk on the life of a proposed insured was
previously submitted by the Ceding Company on a facultative basis to the
Reinsurer or to any other reinsurer, at least three (3) years must have elapsed
since that previous risk was submitted facultatively, unless the original reason
for submitting facultatively no longer applies.
4. The maximum issue age for each life is 85. For Last Survivor policies, the
minimum issue age is 18, for all other policies, the minimum age is 0.
5. The mortality rating on each life does not exceed Table P. However, for Last
Survivor policies, one life may be uninsurable if the other life does not exceed
Table F.
6. The total amount of risk, including scheduled increases, on that life to be
reinsured in the Automatic Pool and under any other individual life reinsurance
agreement with any reinsurer does not exceed the Automatic Binding Limit for
that life shown in Exhibit II.
7. The total amount of insurance issued and applied for in all companies on
each life does not exceed the Jumbo Limits as set forth in Exhibit II.
The Jumbo Limit is to be compared with the total amount of life insurance in
force, including any amount to be replaced, plus the new total amount of
insurance formally applied for in all companies. These two amounts together
equal the total amount of insurance in force and applied for in all companies on
the risk. For the Ceding Company's in-force and applied-for policies, this total
amount of insurance includes all scheduled increases in amount of insurance on
such policies.
Should it be discovered after policy issue, by either Party, that the actual
total amount of life insurance in force and applied for at the time of
application was in excess of the applicable Jumbo Limit, the Reinsurer shall
endeavor to cover the risk up to the lesser of:
a. Its available retention; or
b. The amount it would have accepted under this Agreement had the risk
been within the Jumbo Limit.
The foregoing notwithstanding, the total amount in force shall not include any
amounts to be replaced that meet the following conditions:
a. Existing permanent insurance is being replaced by the Ceding
Company, with or without a Section 1035 exchange, and the Ceding
Company has obtained a duly executed absolute assignment of the
insurance being replaced; or
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
5
b. Existing term insurance is being replaced by the Ceding Company, and
the Ceding Company has obtained a duly executed absolute assignment
of the insurance being replaced; or
c. An internal replacement is being made, where the Ceding Company is
replacing an in-force policy with a new policy of equal or greater
death benefit.
When the total amount of insurance to be compared with the applicable Jumbo
Limit is reduced due to the above conditions, the Ceding Company assumes full
responsibility to effect the cancellation of coverage under the replaced policy
concurrently with the commencement of coverage under the new policy. If the
cancellation does not occur in a timely manner and the failure to cancel results
in the new policy causing coverage to exceed the applicable Jumbo Limit, then
the Reinsurer may (when the Reinsurer becomes aware of the Jumbo Limit
violation) decline reinsurance on the new policy during the period of time while
both coverages are in effect, by written notice to the Ceding Company. Once this
notice has been given, the Reinsurer will have no liability for reinsurance
coverage on the new policy while both coverages are in effect and shall refund
to the Ceding Company all related Reinsurance Premiums for the new policy.
However, if reinsurance on the new policy is declined for this reason and the
cancellation of coverage under the replaced insurance is effected within thirty
(30) days after this notice has been received by the Ceding Company, then, upon
receipt of the Ceding Company's written notice to this effect, the Reinsurer
will again become liable for reinsurance coverage on the new policy as of the
effective date of cancellation of coverage under the replaced policy, and
Reinsurance Premiums for the new policy will again be payable.
8. If all the other requirements for Automatic Reinsurance are met and the life
is a player or coach on a team in the National Hockey League, the National
Football League, the National Basketball Association or Major League Baseball,
prior to ceding the risk automatically under this Agreement, the Ceding Company
must confirm the Reinsurer's available capacity for that risk. The Ceding
Company, by telephone call or electronic mail, shall: (1) notify the Reinsurer
of the name, date of birth, sport and team affiliation, the total life insurance
in force and to be placed on the life, and the amount of new reinsurance
coverage required from the Reinsurer; and (2) confirm that an application for
insurance on the life has been completed. The Reinsurer shall endeavor to inform
the Ceding Company of its available capacity for the risk within two (2)
business days after such notification and confirmation. After the Reinsurer has
advised the Ceding Company of its available capacity, the Ceding Company may
then cede to the Reinsurer no more than that amount on an automatic basis under
this Agreement. If the Ceding Company cedes such a risk automatically, then the
Ceding Company shall notify the Reinsurer of this fact at the time of issue of
the coverage.
9. The Ceding Company, or one of its affiliates, shall retain its share of each
risk on a life, as described in this Agreement and in any other life reinsurance
agreement applicable to risk on that life. However, the Ceding Company reserves
the right to reinsure separately any amount of the retained risk on a life
reinsured under this Agreement with these conditions:
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
6
a. The remaining amount of risk retained on that life by the Ceding
Company, on coverage reinsured under this Agreement, shall not be less
than of the amount of risk initially retained; and
b. Any amounts of retention separately reinsured in this manner shall not
reduce the amount of the Ceding Company's retention on that life for the
purpose of any other terms of this Agreement.
B. Automatic Processing
Automatic Processing under this Agreement is available only for Excess Risks
that meet the other requirements of this Section B.
If the requirements for Automatic Reinsurance are met for a life except for the
requirement stated above in Section A.6, but the total amount of risk on that
life to be reinsured in the Automatic Pool and under any other individual life
reinsurance agreement with any reinsurer does not exceed the Automatic
Processing Limit for that life shown in Exhibit II, then the Ceding Company may
submit to the Lead Reinsurer (designated in Schedule B) all information relating
to the insurability of that life. For Last Survivor policies where one life is
deemed uninsurable, only the information for the other life needs to be
submitted.
The Lead Reinsurer shall review the submitted information to determine if the
life should be reinsured by the Automatic Pool and, if so, on what basis. The
Lead Reinsurer shall endeavor to provide the Ceding Company with a response
within 72 hours of receipt of such information. Approval by the Lead Reinsurer
shall be binding on all other current Automatic Pool reinsurers. This process
shall be known as Automatic Processing and shall be subject to Exhibit II.
Hereinafter, all references to Automatic Reinsurance, coverage automatically
reinsured, and the Automatic Pool will include coverage reinsured through
Automatic Processing.
C. Facultative Reinsurance
If the requirements for Automatic Reinsurance are not met and the Ceding Company
applies for Facultative Reinsurance with the Reinsurer, or if the requirements
for Automatic Reinsurance are met but the Ceding Company prefers to apply for
Facultative Reinsurance with the Reinsurer, then the Ceding Company shall submit
to the Reinsurer the following:
1. Sufficient evidence agreed upon between the Ceding Company and the
Reinsurer, relating to the insurability of each life submitted for Facultative
Reinsurance; and
2. Any subsequent information, whether requested by the Ceding Company, the
Reinsurer or any other reinsurer, that is pertinent to the risk assessment
received by the Ceding Company prior to the date the Ceding Company has accepted
the Reinsurer's final underwriting offer in accordance with this Agreement.
Failure to provide such information will negate any facultative reinsurance
offer. For Last Survivor policies where one life is deemed uninsurable, only the
information for the other life needs to be submitted.
The Reinsurer shall promptly notify the Ceding Company of its declination to
offer, its underwriting offer subject to additional requirements, or its final
underwriting offer. The final underwriting offer will automatically expire upon
the earliest of: (1) the date the policy application is withdrawn; (2) the
expiration date specified in the final offer; (3) the date one hundred twenty
(120) days after the date of the final offer; and (4) the date a final offer is
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
7
accepted and coverage is placed.
Once the Ceding Company has notified the Reinsurer in writing during the
lifetime of the insured of its acceptance of the Reinsurer's final underwriting
offer, then Facultative Reinsurance for the risk under this Agreement will
become effective as described in Section IV.B.
ARTICLE IV
LIABILITY FOR REINSURANCE
A. The Reinsurer's liability for Automatic Reinsurance will begin
simultaneously with the Ceding Company's liability, but in no event prior to the
Effective Date.
B. The Reinsurer's liability for Facultative Reinsurance coverage will begin
simultaneously with the Ceding Company's liability once the Reinsurer has
accepted the application for Facultative Reinsurance and the Ceding Company has
accepted the Reinsurer's final underwriting offer, as described in Section
III.C.
C. In no event shall reinsurance be in force and binding if the issuance and
delivery of such insurance constituted the doing of business in a jurisdiction
in which the Ceding Company knowingly was not properly licensed.
D. The Reinsurer's liability for coverage under the Ceding Company's
conditional receipt or temporary insurance agreement, whichever the Ceding
Company uses (a sample copy of which is included as Exhibit VI and, for the
purpose of this Section D, hereinafter called the "Insurance Receipt"), is
limited to the amount the Reinsurer would reinsure under this Agreement on an
Automatic Reinsurance basis (whether the risk qualifies for Automatic
Reinsurance or not) if the coverage under the policy applied for would have been
approved and issued, as limited by the terms of the Insurance Receipt, provided:
1. The Ceding Company has followed its normal cash-with-application procedures
for such coverage; and
2. The Ceding Company's original underwriting assessment for the risk was not a
decline (if it was a decline, the Reinsurer would have no liability for such
coverage except as described below in Paragraph 5); and
3. There is no coverage in effect on the life in the Automatic Pool through any
other Insurance Receipt having an effective date preceding, or the same as, the
effective date of such coverage; and
4. If such coverage is on an Excess Risk that also exceeds either the Automatic
Binding Limit or the Jumbo Limit for the risk as shown in Exhibit II, then the
Reinsurer's liability for such excess amount of coverage will be limited by the
Reinsurer's available capacity; and
5. If the Ceding Company has accepted any final underwriting offer(s) for
Facultative Reinsurance on the risk (whether such offer is made by the
Reinsurer, as described above in Section III.C, or by any other reinsurer(s)),
then the Reinsurer's liability for such coverage under the Insurance Receipt
will be equal to:
a. The amount of coverage in effect under the terms of the Insurance
Receipt;
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
8
multiplied by
b. The proportion equal to the amount of Facultative Reinsurance
included in the Reinsurer's final underwriting offer that is accepted
by the Ceding Company, divided by the total amount of the risk to be
issued by the Ceding Company.
The Reinsurer's liability for coverage under the Insurance Receipt shall
terminate simultaneously with the termination of the Ceding Company's liability
under the Insurance Receipt.
E. The Reinsurer's liability for reinsurance on each risk will terminate when
the Ceding Company's liability terminates, unless it terminates earlier as
specified otherwise in this Agreement.
F. The liability of each reinsurer in the Automatic Pool shall be separate and
not joint with the other pool reinsurers. In no way will the liability of the
Reinsurer be increased by reason of the inability of the Ceding Company to
collect from any other reinsurers, whether specific or general, any amounts
which may be due from them, whether such inability arises from insolvency of
such other reinsurers or otherwise.
ARTICLE V
UNDERWRITING REVIEW
A. Purpose of Underwriting Review
For new business written by the Ceding Company that meets the requirements for
Automatic Reinsurance, the Ceding Company intends to underwrite applications for
such business as if the business were to be fully retained by the Ceding
Company. Such business shall be underwritten according to the underwriting
practices and guidelines described in Schedules C, D, or E, as applicable.
The underwriting practices and professional judgment used by the Ceding Company
in arriving at a risk assessment may not agree entirely with the underwriting
practices customarily used by, or the professional judgment of, the Reinsurer
under similar circumstances.
It is the purpose of this review to:
1. Afford the Reinsurer a reasonable period of time to review the underwriting
practices used, and risk assessments made, by the Ceding Company on
automatically reinsured business; and
2. Settle on a risk assessment for a case that is agreeable between the Parties
and that shall be used to determine the Reinsurance Premiums for the risk from
the beginning of the reinsurance liability under this Agreement for any such
case reviewed by the Reinsurer within that period of time where the underwriting
practices used or risk assessment made by the Ceding Company differ materially
from the opinion of the Reinsurer.
It is NOT the purpose of this review, nor is it within the authority of the
Reinsurer under this Agreement, to deny reinsurance coverage due to a difference
of opinion over the risk assessment on a policy application for business
reinsured under this Agreement that is written in accordance with the Ceding
Company's standard underwriting practices and guidelines or
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
9
under the terms of one of the special underwriting programs described in
Schedule C or Schedule D.
B. Underwriting Review Process
1. This review shall only be available to the Reinsurer during the first sixty
(60) months following the issue date of any risk automatically reinsured under
this Agreement.
2. For any risk reviewed during this period where the Reinsurer's opinion
differs materially from that of the Ceding Company, the Parties shall work
together in good faith to develop a mutually agreeable risk assessment to be
used to calculate the Reinsurance Premiums for that risk from the beginning of
the Reinsurer's liability for that risk under this Agreement.
3. For any risk reviewed during this period where the Parties cannot mutually
agree on a risk assessment within a reasonable time period, the Parties shall
submit the risk for dispute resolution under Article XVIII.
4. This review shall not be available and the Reinsurer may not challenge any
risk assessments made by the Ceding Company after this sixty (60) month period
except as described below.
5. Any unintentional or accidental failure of the Ceding Company to adhere to
its standard underwriting practices and guidelines in the assessment of risks,
resulting from an oversight or clerical error by the Ceding Company, will not be
grounds for denying reinsurance coverage on a risk if the effect of the failure
is not material. Grossly negligent or deliberate acts of the Ceding Company,
recurring errors, or errors that are part of a pattern evidencing a disregard
for the Ceding Company's standard underwriting practices and guidelines would be
considered grounds for denying reinsurance coverage on a risk. The Reinsurer's
right to deny reinsurance coverage as described above shall not be limited to
the sixty (60) month period as described in paragraph B.1, above.
C. Ceding Company's Responsibilities to the Reinsurer for Underwriting Review
Upon request by the Reinsurer, the Ceding Company shall provide to the Reinsurer
all information in its possession, that was used in underwriting and assessing
the risks for each qualifying case identified for review under this Article.
This information to be provided to the Reinsurer may be transmitted using any
medium agreed upon by the Parties; a valid copy of the information shall satisfy
this purpose.
This information shall be delivered to the Reinsurer within thirty (30) calendar
days after the Ceding Company receives the request for the information, unless
an alternative delivery period is agreed upon by the Parties.
ARTICLE VI
REINSURANCE PREMIUMS
A. Computation
Reinsurance Premiums under this Agreement shall be calculated as described in
Exhibit I.
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
10
B. Timing
Reinsurance Premiums are payable each month of coverage for reinsured risks in
force at the end of the preceding month (monthly in advance). For newly
reinsured risks with a reinsurance effective date during the current month, the
Reinsurance Premium for the first month of coverage will be payable in the next
following monthly statement.
C. Extended Policy Maturity
If the maturity date of a reinsured policy is extended in accordance with the
policy, the death benefit under the policy will continue to be payable as
provided in the policy, and the reinsurance under this Agreement will remain in
effect on the same terms as before the policy's original maturity date.
D. Unearned Reinsurance Premiums
The Reinsurer will refund to the Ceding Company all unearned Reinsurance
Premiums, less applicable allowances, arising from policy conversions, other
changes, and terminations described in Article X. If termination is due to
lapse, surrender or conversion, unearned Reinsurance Premium will be determined
as of the effective date of termination. If termination is due to death,
unearned Reinsurance Premium will be determined as of the date of death.
E. Guaranteed Rates
Although the Reinsurer anticipates continuing to accept Reinsurance Premium at
the current rate level, the Reinsurer reserves the right to increase the YRT
Reinsurance Rate Factors, as set forth in Exhibit IV, for any Plan(s) of
Insurance when there is a material shift in the demographics or the Reinsurer's
expectations of future mortality results on such Plan(s) of Insurance warrant.
The Reinsurer shall provide at least one hundred twenty (120) days written
notice of any such change. However, in no event will the increased Base YRT
Reinsurance Premium Rate, as defined in Exhibit I, for standard risks exceed the
applicable annual rates in the Valuation Mortality Table specified in Schedule A
for such Plan(s) of Insurance.
The Reinsurer and the Ceding Company shall then endeavor in good faith to
mutually agree on the amount of rate increase that shall apply to such Plan(s)
of Insurance. If the Parties cannot agree on the amount of such rate increase
for such Plan(s) of Insurance, then the Ceding Company reserves the right to
recapture the risks associated with such Plan(s) of Insurance without fee, as of
the effective date of the rate increase. Written notice of such recapture shall
be provided to the Reinsurer no later than thirty (30) days following the
effective date of the rate increase.
F. Payment of Reinsurance Premiums
The Net Reinsurance Premium Balance payable each month equals the sum of the
Reinsurance Premiums described above in Section A, minus the sum of any unearned
Reinsurance Premiums described above in Section D. For any month, this net
balance may be positive (greater than zero) or negative.
Any positive Net Reinsurance Premium Balance for a month is payable to the
Reinsurer. The Ceding Company shall forward this balance to the Reinsurer by its
due date, which is thirty (30) days after the close of the calendar month.
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The absolute value of any negative Net Reinsurance Premium Balance for a month
is payable to the Ceding Company. The Reinsurer shall forward this balance to
the Ceding Company by its due date, which is thirty (30) days after the Ceding
Company submits the statement for that month.
G. Overpayment of Reinsurance Premiums
If the Ceding Company overpays a Net Reinsurance Premium Balance and the
Reinsurer accepts the overpayment, the Reinsurer's acceptance of the overpayment
will not constitute or create an additional reinsurance liability, and it will
not result in any additional reinsurance. Instead, the Reinsurer shall be liable
to the Ceding Company for a credit in the amount of the overpayment without
interest.
H. Underpayment of Reinsurance Premiums
If the Ceding Company fails to make a full payment of the Net Reinsurance
Premium Balance, due to an Error defined in Article IX, the amount of
reinsurance coverage provided by the Reinsurer on the risks related to such
underpayment shall not be reduced. However, once the underpayment is discovered
by one Party and the other Party is notified of the underpayment, the Ceding
Company shall promptly pay to the Reinsurer the difference between the full
payment amount and the amount actually paid. If payment of the full amount of
the underpayment is not made within sixty (60) days after the discovery of the
underpayment, the underpayment shall be treated as delinquent premium and
subject to the conditions listed below in Section I.
The Reinsurer reserves the right to charge the Ceding Company interest on the
amount of the underpayment, even if it becomes delinquent as described below in
Section I. Such interest will accrue from the due date of the underpaid Net
Reinsurance Premium Balance and be computed as described in Section XXII.P.
I. Termination of Reinsurance for Nonpayment of Reinsurance Premiums
If undisputed Reinsurance Premiums for one or more reinsured risks are
delinquent, the Reinsurer has the right to terminate its reinsurance liability
on those risks by giving the Ceding Company ninety (90) days advance written
notice of termination. This notice shall list the risks and the amount of the
delinquent Reinsurance Premium for each risk. If the delinquent Reinsurance
Premiums have not been paid to the Reinsurer as of the end of such notice
period, the Reinsurer's liability will terminate for the risks described in the
termination notice at the end of such notice period.
If the Reinsurer's liability on one or more of the Ceding Company's risks is
terminated because of nonpayment of Reinsurance Premiums, the Ceding Company
will continue to be liable to the Reinsurer after the termination for all unpaid
Reinsurance Premiums earned up to the date of such termination.
The Ceding Company shall not force termination under the provisions of this
Section I solely to avoid the recapture requirements or to transfer the block of
business reinsured to another reinsurer.
J. Reinstatement of Reinsurance Terminated for Nonpayment of Reinsurance
Premiums
The Ceding Company may reinstate reinsurance on risks terminated in accordance
with Section I within sixty (60) days after the effective date of termination by
paying the unpaid Reinsurance
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Premiums for the risks inforce prior to the termination. However, the Reinsurer
will not be liable for any claim incurred between the date of termination and
the date of reinstatement. The effective date of reinstatement will be the date
the required unpaid Reinsurance Premiums are received by the Reinsurer.
ARTICLE VII
REINSURANCE REPORTING
A. Accounting Statements and Other Reports
Within thirty (30) days after the close of each calendar month, the Ceding
Company shall provide the Reinsurer an accounting statement. The Ceding Company
shall also provide the Reinsurer with additional reports as provided in Exhibit
VII.
For Automatic and Facultative Reinsurance becoming effective during the calendar
month, the Ceding Company will notify the Reinsurer of such new reinsurance
business in the succeeding monthly report. However, the first three monthly
reports under this Agreement will be sent within one hundred twenty (120) days
after the due date of the first monthly report.
The Ceding Company may provide an estimate Net Amount at Risk for new
reinsurance business in the first monthly report in which such business appears.
In the event that the Ceding Company provides an estimated Net Amount at Risk,
it shall provide an actual Net Amount at Risk in subsequent monthly reports.
Additional reports reasonably requested by a Party will be provided by the other
Party in a timely manner.
B. Reporting Format and Medium
The information to be provided by the Ceding Company in these monthly reports to
the Reinsurer shall be in a format, and transmitted using a medium, mutually
agreeable to the Parties. As of the Effective Date of this Agreement, the
information to be provided by the Ceding Company in these monthly reports to the
Reinsurer shall be on a self-administered reporting basis as set out in Exhibit
VII.
C. Reporting Delays and Changes
The Ceding Company shall inform the Reinsurer of any material delays or
significant changes in the information provided, particularly in the file layout
and in data values, as set out in Exhibit VII. It is the expectation of the
Parties that the structure of the in-force file is stable from period to period.
ARTICLE VIII
CREDIT FOR REINSURANCE
A. Reinsurance Credit
The Parties intend that the Ceding Company be entitled to take credit for the
reinsurance ceded under this Agreement in its statutory financial statements
filed in all jurisdictions in which the
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Ceding Company is licensed, accredited, or otherwise authorized to transact
business ("Reinsurance Credit"). The Parties shall use best efforts to ensure
that such entitlement shall become and remain available to the Ceding Company
throughout the duration of this Agreement.
The amount of the Reinsurance Credit shall be determined by the Ceding Company
and shall include mortality risk reserves, unearned premium reserves, and
reinsurance recoverables on paid and unpaid losses for the reinsurance ceded
under this Agreement. Such amounts shall be calculated in accordance with
applicable accounting and valuation laws, regulations and actuarial guidelines
to which the Ceding Company is subject on each valuation date and shall take
into account the terms of this Agreement.
B. Reinsurer Representation
The Reinsurer represents to the Ceding Company that it was properly licensed or
accredited in all jurisdictions in which the Ceding Company is licensed,
accredited, or otherwise authorized to transact insurance business, so that the
Reinsurance Credit shall be allowed. The Reinsurer shall notify the Ceding
Company, as a material communication under Article XXIII, immediately upon
learning of any change in, or loss of, such licensing or accreditation.
C. Security for Reinsurance Credit
In the event the Ceding Company reasonably believes it will not be entitled to
take Reinsurance Credit as a result of a change to the Reinsurer's licensing or
accreditation, the Reinsurer shall establish and maintain the security, at its
sole expense, that is needed to allow the Ceding Company to continue to take
Reinsurance Credit and that meets all applicable laws and regulations regarding
Reinsurance Credit.
In the event the Ceding Company reasonably believes it will not be entitled to
take Reinsurance Credit as a result of a regulatory change or interpretation
outside of the Reinsurer's control, the Reinsurer shall establish and maintain
the security that is needed to allow the Ceding Company to continue to take
Reinsurance Credit and that meets all applicable laws and regulations regarding
Reinsurance Credit. In this event, the expense of establishing and maintaining
the security shall be shared equally by the Ceding Company and the Reinsurer.
If such security is required in either event, the Reinsurer shall establish a
trust or a letter of credit, satisfactory to the Ceding Company, in a form that
meets all applicable standards of law and regulation to entitle the Ceding
Company to claim such Reinsurance Credit. However, the Reinsurer may propose an
alternative option under which Reinsurance Credit shall be allowed the Ceding
Company, at the sole discretion and approval of the Ceding Company.
The Parties shall amend this Agreement, in accordance with Section I.B, to
reflect the establishment of such security or such approved alternative option
so that the Ceding Company shall continue to be entitled to take such
Reinsurance Credit.
If the Reinsurer fails to provide the Ceding Company with such security or
approved alternative option to continue to be entitled to take such Reinsurance
Credit for the business covered under this Agreement, the Ceding Company may
recapture the business covered under this Agreement, subject to the terms of
Article XVI. In no event shall recapture be construed to be the exclusive remedy
of the Ceding Company.
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ARTICLE IX
ERRORS
Errors, omissions, oversights, delays or misunderstandings in the administration
of this Agreement (collectively "Error") by either Party, shall not invalidate
the reinsurance hereunder. As soon as reasonably possible after discovery,
notice shall be provided, the Error shall be rectified and both Parties shall be
restored, to the extent possible, to the position they would have occupied had
the Error not occurred.
However, if it is not reasonably possible to restore each Party to the position
it would have occupied if not for the Error, the Parties will endeavor in good
faith to promptly resolve the situation in a manner that is fair and reasonable,
and most closely approximates the intent of the Parties as evidenced by this
Agreement.
Without limiting the procedures outlined below for Late Reported Risks, if
either Party discovers that the Ceding Company has failed to correctly report
ceded reinsurance as provided in this Agreement, the Reinsurer may require the
Ceding Company to audit its records for other similar Errors. The Ceding Company
is expected to correct such Errors and to take reasonable actions to ensure that
similar Errors do not recur. If the Reinsurer receives no evidence that the
Ceding Company has taken reasonable actions to remedy such a situation, then the
Reinsurer reserves the right to limit its liability on risks not correctly
reported by providing thirty (30) days advance written notice to the Ceding
Company of its intention to limit its liability on such risks.
The first paragraph of this Errors article shall not apply to the following
circumstances:
(1) Any Late Reported Risks. For the purposes of this Article IX, a "Late
Reported Risk" is a risk reported to the Reinsurer more than two (2) years after
its effective date. The Reinsurer will not automatically accept liability for
any Late Reported Risks. The Ceding Company shall submit to the Reinsurer, for
approval, reporting information about any Late Reported Risks it wishes to be
ceded under this Agreement. The process for Late Reported Risks will be as
follows:
(a) The Reinsurer will notify the Ceding Company, within a reasonable
time period after submission of the reporting information about any
Late Reported Risks, whether it is able to accept such risks based
on criteria such as capacity.
(b) In the event the Reinsurer is able to accept such Late Reported
Risks, the Ceding Company agrees to pay all unpaid Reinsurance
Premiums on the next premium accounting statement upon the acceptance
of the risk by the Reinsurer. The Reinsurer reserves the right to
charge interest on such Reinsurance Premiums, accruing from their
respective due dates to the date of payment, computed as described in
Section XXII.P.
(c) If the Reinsurer is not able to accept such Late Reported Risks,
such risks will not be covered by the terms of this Agreement and no
liability will attach to the Reinsurer.
(2) Any Late Reported Terminations. For the purposes of this Article IX, a
"Late Reported Termination" is a termination of life reinsurance coverage (other
than by death) reported more than two (2) years after the termination date of
the covered risk. The Reinsurer will reimburse Reinsurance Premiums on Late
Reported Terminations for only the last two (2) years.
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(3) Any intentional failure to comply with the terms of this Agreement which
can be shown to be the result of grossly negligent or deliberate acts or
omissions by the Ceding Company. The Reinsurer shall not be liable for any claim
amounts from policies ceded as a result of such acts or omissions.
(4) Any claim made for a policy where the Ceding Company failed to adhere to
its standard underwriting practices and guidelines in effect at the time of the
underwriting of the policy and the effect of such failure is material. The
Reinsurer may support such claims at its discretion.
(5) Any applications for facultative reinsurance on a risk for which the
Reinsurer has not received notification that its offer of facultative
reinsurance has been accepted by the Ceding Company, whether written in
accordance with Section III.C or constructive through reporting of such risks or
payment of reinsurance premium for such risks.
ARTICLE X
POLICY CONVERSIONS, OTHER CHANGES, AND TERMINATIONS
A. Conversions
A conversion is a policyholder's exercise of a contractual right to replace
in-force coverage with a new permanent policy without evidence of insurability.
Conversions from a policy reinsured under this Agreement will continue to be
reinsured under this Agreement as follows:
1. The converted coverage under the new policy will be reinsured with the
Reinsurer in the same proportion as was determined for the in-force coverage
converted; and
2. Reinsurance Premiums for such converted coverage shall be calculated on a
point-in-scale basis.
If the new policy was converted under the Conversion Option Rider from either
(a) two single life policies reinsured under this Agreement; or (b) one single
life policy reinsured under this Agreement and one newly underwritten life, to a
last survivor policy, Reinsurance Premiums for both lives shall be calculated on
a point-in-scale basis. The Reinsurance Premiums for both lives shall be
calculated using the tables of Annual Rates per $1,000 of Reinsured Net Amount
at Risk and table of YRT Reinsurance Rate Factors applicable to the earliest
original coverage in accordance with the procedures set out in Exhibit I.
Conversions from a policy not reinsured under this Agreement shall not be
reinsured under this Agreement.
B. Increases and Decreases in Policy Face Amount
1. If the face amount of a policy reinsured under this Agreement increases and:
a. The increase is subject to full underwriting, then (i) the provisions
of Article III shall apply to the increase in reinsurance and (ii) the
increase is underwritten according to the Ceding Company's underwriting
practices and guidelines (including preferred criteria, age and amount
requirements and underwriting manual assessments) that were approved in
writing by the Reinsurer in accordance with Section XXII.L. Reinsurance
Premiums for the increase shall be based on new-business rates.
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b. The increase is not subject to full underwriting, the Reinsurer will
accept the increase, provided that:
(1) If the policy was ceded automatically, the Ceding Company
underwrote the full face amount (including all scheduled
increases) in accordance with the terms of this Agreement (whether
through Automatic Reinsurance or Automatic Processing); or
(2) If the policy was ceded facultatively, the Ceding Company received
approval from the Reinsurer for the full face amount (including
all scheduled increases) at the time of facultative application.
Reinsurance Premiums for increases not subject to full
underwriting shall be calculated on a point-in-scale basis.
For increases in accordance with B.1.b, the Ceding Company's
retention and the amount of risk ceded to the Reinsurer shall be
determined for the increase at the time the increase goes into
effect, as follows:
(1) For increases in accordance with B.1.b (1), in accordance with
Schedule B; or
(2) For increases in accordance with B.1.b (2), the Ceding Company's
retention and the amount of risk ceded to the Reinsurer shall be
determined by mutual agreement of the Parties.
2. If the face amount of a policy reinsured under this Agreement decreases and:
a. If the face amount of a policy that was previously increased is
subsequently decreased, the decrease will be applied first to the
increase with the latest effective date, and then to the increase
with the next earlier effective date, and so forth as necessary,
until applying any remaining decrease to the initial face amount of
the policy.
b. The Ceding Company's retention and the amount of risk ceded to the
Reinsurer shall be determined at the time the decrease goes into
effect, as follows:
(1) For decreases under policies ceded automatically, in accordance
with Schedule B; or
(2) For decreases under policies ceded facultatively, the amount of
the risk reinsured to the Reinsurer shall be reduced
proportionately.
C. Policy Exchanges and Other Changes
A policy exchange is a new policy replacing an existing policy where the new
policy is not fully underwritten. Exchanges from one single life policy
reinsured under this Agreement to a different single life policy will be
reinsured on a point-in-scale basis. Likewise, exchanges from one last survivor
policy reinsured under this Agreement to a different last survivor policy will
be reinsured on a point-in-scale basis. Exchanges from a last survivor policy
reinsured under this Agreement with the Last Survivor Exchange Option Rider or
Twenty-Four (24) Month Exchange Rider to two single life policies will be
reinsured at the applicable single life point-in-scale rates.
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For each new policy after the exchange, the insurance will continue to be
reinsured by the Reinsurer in the same proportions as set at issue of the
original coverage.
If there is a contractual change in a policy reinsured under this Agreement that
is not subject to full underwriting, other than the changes described above in
Sections A and B, the insurance shall continue to be reinsured with the
Reinsurer in the same proportions as the original coverage and Reinsurance
Premiums for contractual changes shall be calculated on a point-in-scale basis.
The Ceding Company shall notify the Reinsurer of any such changes in policies
reinsured under this Agreement in its monthly reinsurance reports.
Exchanges made from a policy not reinsured under this Agreement shall not be
reinsured under this Agreement.
D. Policy Terminations and Lapses
If a policy reinsured under this Agreement terminates, the reinsurance for the
risk will terminate as of the effective date of policy termination. For a policy
terminated due to the expiry of any grace period for an unpaid amount, the
effective date of termination for such policy will be the date such unpaid
amount was first due.
If a policy reinsured under this Agreement lapses to extended term insurance
under the terms of that policy, the corresponding reinsurance on the reinsured
policy will continue on the same basis as the original reinsurance until the
expiry of the extended term period.
If a policy reinsured under this Agreement lapses to reduced paid-up insurance
under the terms of that policy, the amount of the corresponding reinsurance on
the reinsured policy will be reduced according to the terms of Section B.2.
If the Ceding Company allows a policy reinsured under this Agreement to remain
in force under its automatic premium loan provisions, the corresponding
reinsurance on the reinsured policy will continue unchanged and in force as long
as such provisions remain in effect, except as otherwise provided in this
Agreement.
E. Reduction in Retained Coverage on a Life
If any portion of the aggregate amount of insurance retained by the Ceding
Company or its affiliates on an individual life reduces or terminates, the
Ceding Company or its affiliates will recalculate its retention on any remaining
risk(s) in force on that life. The Ceding Company or its affiliates will not be
required to retain an amount in excess of its retention limit for the age,
mortality rating, and risk classification based on the applicable retention
limit that was in effect at the time of issue for any risk. Unless provided for
otherwise in the applicable reinsurance agreements, the Ceding Company or its
affiliates will first recalculate the retention on the risk(s) having the same
mortality rating as the terminated risk(s). Order of recalculation will
secondarily be determined by effective date of the risk, oldest first.
F. Multiple Reinsurers
If reinsurance of a risk is shared by more than one reinsurer, the Reinsurer's
percentage of any increased or reduced reinsurance will be the same as its
initial percentage of the reinsurance for that risk unless specified otherwise
in Schedule B or agreed upon by the Reinsurer.
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G. Mortality Rating Changes
On Facultative Reinsurance, if the Ceding Company wishes to reduce the mortality
rating or otherwise improve the risk class, such change shall be subject to the
Reinsurer's approval. On Automatic Reinsurance, the Reinsurer shall accept this
change if the change qualifies under the underwriting practices and guidelines
described in Schedules C, D, or E, as applicable.
H. Rescission of Policy Coverage Prior to Death Claim
If a misrepresentation, misstatement, or omission on an application results in
the Ceding Company's rescission of coverage, the Reinsurer shall refund to the
Ceding Company any Reinsurance Premiums it received on that coverage. This
refund shall be in lieu of any and all other reinsurance benefits payable on
that coverage under this Agreement. The Reinsurer shall also reimburse the
Ceding Company for its proportionate share of any non-routine expenses incurred
in connection with the rescission including the costs of investigations and of
obtaining financial and medical reports.
In the event the rescission is challenged by legal action, the Reinsurer shall
participate in the associated legal and investigation expenses. This paragraph
shall not apply to expenses relating to rescissions of policies which are
determined to be stranger-owned life insurance policies or investor-owned life
insurance policies.
If a rescission of policy coverage is reversed and the policy coverage is
restored to in-force status, any related reinsurance coverage under this
Agreement shall also be restored upon the Ceding Company's payment to the
Reinsurer of all applicable Reinsurance Premiums.
ARTICLE XI
POLICY REINSTATEMENT
If a policy reinsured under this Agreement lapses or terminates, and is later
reinstated under the Ceding Company's terms and rules, the Reinsurer will
reinstate the reinsurance as follows:
A. Procedure to Reinstate Reinsurance
If the policy being reinstated was reinsured on an automatic basis under this
Agreement, or if the policy being reinstated was reinsured on a facultative
basis under this Agreement and the reinstatement occurs less than ninety (90)
days after the policy has lapsed or terminated, the reinsurance cession shall be
automatically reinstated.
If the policy being reinstated was reinsured on a facultative basis under this
Agreement and the reinstatement occurs ninety (90) days or more after the policy
has lapsed or terminated, copies of the application for reinstatement, any
personal declaration or medical examination, and any other underwriting
documents that the Ceding Company routinely requires (collectively,
"Underwriting Information") shall be forwarded by the Ceding Company to the
Reinsurer, together with the request for reinstatement of the reinsurance. The
Reinsurer shall notify the Ceding Company promptly of its acceptance or
declination of the request for reinstatement.
The Reinsurer reserves the right to request any available Underwriting
Information on any reinstatement.
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B. Cost to Reinstate Reinsurance
Upon reinstatement of reinsurance under this Article, the Ceding Company shall
pay the Reinsurer Reinsurance Premiums in the same manner as the Ceding Company
received corresponding policy charges under the policy for the period of lapse.
The Reinsurer reserves the right to charge the Ceding Company interest on such
Reinsurance Premiums in accordance with Section XXII.P.
The Reinsurer will have no liability for any claims incurred between the date of
termination and the date of reinstatement of the reinsurance.
C. Nonforfeiture Reinsurance Termination
If the Ceding Company reinstates a policy that is reinsured while under an
extended term or reduced paid-up nonforfeiture option, then reinsurance under
such nonforfeiture option will terminate upon policy reinstatement.
ARTICLE XII
CLAIMS
A. Liability for Claims
The Ceding Company is responsible for the settlement of claims on policies
reinsured under this Agreement. It is the Ceding Company's sole decision to
determine whether a claim is payable under a policy. The Ceding Company shall
operate in good faith and adjudicate claims on policies reinsured under this
Agreement as if there were no reinsurance. All claim settlements on policies
reinsured hereunder will be subject to the terms and conditions of the
particular policy, the applicable statutory requirements, and the standard
settlement practices of the Ceding Company. The Ceding Company's decision to pay
a claim, provided the Ceding Company has complied with the terms of this
Agreement, shall be binding on the Reinsurer, and the Reinsurer shall be liable
for its portion of the reinsurance on that risk, as described in Schedule B.
B. Notification of Claims
1. The Ceding Company shall promptly notify the Reinsurer when it is advised of
a death claim on coverage reinsured under this Agreement.
2. For the following types of claims on coverage reinsured under this
Agreement, the Ceding Company shall furnish the Reinsurer with all information
it has pertaining to the issuance of the coverage and to the claim for claims
incurred during the contestable period where:
a. the policy(s) was ceded on an automatic basis and the total
Reinsured Net Amount at Risk on the life exceeds or
b. the policy was ceded on a facultative basis.
The Reinsurer shall have six (6) business days to provide the Ceding Company
with any information it has on such claim. The Ceding Company shall consider all
information in
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determining its claim liability in accordance with Section A. The Ceding
Company's failure to notify the Reinsurer of such claims shall not invalidate
the reinsurance, but instead shall be treated in accordance with Article IX.
C. Claim Payment
1. Proofs
If a death claim is made under a risk reinsured under this Agreement, the Ceding
Company shall provide the Reinsurer with copies of proof(s) of death of the
insured(s), proof of claim payment, and the claimant's statement (collectively
"Proofs").
For Last Survivor risks, when the first death occurs within the contestable
period, the Ceding Company shall submit any claims investigation information to
the Reinsurer.
For any claim on a risk reinsured under this Agreement, copies of claim files,
underwriting files and other documents relating to a policy under this Agreement
shall be furnished to the Reinsurer upon written request.
2. Payment of Reinsurance Proceeds
The Reinsurer shall pay the Ceding Company the Reinsured Net Amount at Risk,
defined in Schedule B, on claims for which it is liable under this Agreement.
The due date for such payment is the date fifteen (15) business days after the
date that the Reinsurer has received the Proofs and all outstanding documents
and all issues have been resolved.
The Reinsurer shall also reimburse the Ceding Company for its proportionate
share of non-routine claims expenses (defined below in Section G) and any
interest paid by the Ceding Company on such claims, such proportion based on the
relationship of the Reinsured Net Amount at Risk to the Total Net Amount at Risk
of the coverage, as defined in Schedule B. Interest paid by the Ceding Company
on such claims shall be in accordance with the policy provisions and applicable
state requirements.
Payment of reinsurance proceeds will be made to the Ceding Company in a single
sum, regardless of the Ceding Company's mode of settlement with the payee under
the policy.
3. Claim Balances in Default
If the Reinsurer is delinquent by more than thirty (30) days on an undisputed
amount due to the Ceding Company relating to a claim:
a. The Ceding Company shall have the right to charge interest on
delinquent amounts in accordance with Section XXII.P;
b. The Ceding Company shall have the right to offset such amount,
including any accrued interest charged by the Ceding Company, from
any amount due the Reinsurer in accordance with Article XVII; and
c. To the extent there is an insufficient balance from which to offset
such amounts, the Ceding Company shall have the right to recapture
the remaining reinsurance under this Agreement, as described in
Article XVI, provided the Ceding Company has given the Reinsurer
ninety (90) days advance written notice of its intent to
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recapture and the Reinsurer has failed to pay the net amount due,
including any accrued interest charged by the Ceding Company, by the
end of such notice period. In no event shall recapture be construed to
be the exclusive remedy of the Ceding Company.
D. Contested Claims
1. The Ceding Company shall promptly notify the Reinsurer of its intent to
deny, reduce, compromise, contest, litigate, or assert defenses against
(collectively, "Contest") a claim on a risk reinsured under this Agreement via
email to xxxxx_xxxxxx@xxxxxxxxxx.xxx or as otherwise provided by the Reinsurer.
The Ceding Company shall also furnish all information material to such action.
Recognizing the urgent nature of these communications, within six (6) business
days of receipt of such information (the "Contested Claim Review Period"), the
Reinsurer shall notify the Ceding Company in writing of the Reinsurer's decision
whether or not it shall participate in the Contest. The Reinsurer may extend the
Contested Claim Review Period by two (2) additional business days by written
notice to the Ceding Company, if such notice is provided by the end of the
initial five-day period. If the Reinsurer does not respond to the Ceding Company
within the Contested Claim Review Period, the Reinsurer will be deemed to have
elected to participate in the Contest, and any settlement made by the Ceding
Company shall be binding on the Reinsurer.
2. If the Reinsurer elects to participate in the Contest, then:
a. The Ceding Company will promptly advise the Reinsurer of all
significant developments, including notice of legal proceedings
initiated in connection with the contested claim until the claim is
resolved;
b. The Reinsurer shall pay its proportionate share of any settlement of
the claim, such proportion based on the relationship of the Reinsured
Net Amount at Risk to the Total Net Amount at Risk of the coverage,
as defined in Schedule B, and in accordance with Article XIII; and
c. The Reinsurer shall also share in the non-routine claims expenses
(defined below in Section G) and Extra-Contractual Obligations, as
defined in Article XIII, associated with the Contest in the same
proportion as stated above in Paragraph b.
Notwithstanding the above, if, at any point in time, the Reinsurer
disagrees with the Ceding Company's course of action, the Reinsurer
may opt out of the Contest by paying the Ceding Company the Reinsured
Net Amount at Risk and its proportionate share of non-routine claims
expenses (defined in Section G) incurred to the date on which the
Reinsurer opts out in the same proportion as stated above in b as if
there were no Contest. However, once the Reinsurer has participated in
the Contest, the Reinsurer shall remain liable for its share of any
Extra Contractual Obligations in accordance with Article XIII that
arise from actions taken prior to the date the Reinsurer opts out in
the same proportion as stated above in Paragraph b. Any dispute over
whether Extra-Contractual Obligations arose from agreed upon actions
taken prior to the date the Reinsurer opts out shall be subject to
dispute resolution in accordance with this Agreement.
3. If the Reinsurer declines to participate in the Contest of the claim, then:
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a. The Reinsurer shall release all of its liability for the claim by
paying the Ceding Company the Reinsured Net Amount at Risk and its
proportionate share of non- routine claims expenses (defined below
in Section G) incurred to the date on which the Reinsurer notifies
the Ceding Company that it declines to be a party to the action, in
the same proportion as stated above in Paragraph 2.b, as though
there were no Contest; and
b. The Reinsurer shall not share in any subsequent increase or decrease
in liability for the claim.
4. In the event the Ceding Company does not notify the Reinsurer of a Contest
on a claim, in accordance with paragraph 1 above, the Reinsurer shall not be
liable for non-routine claims expenses, defined below in Section G, or
Extra-Contractual Obligations, as defined in Article XIII, associated with the
Contest, but will remain liable for its proportionate share of the lesser of (i)
the contractual benefits that would have been payable had there been no Contest
or (ii) the actual amounts payable as a result of the Contest.
5. The Reinsurer will not recommend to the Ceding Company to contest a claim.
E. Misstatement of Age or Sex
If the amount of insurance provided by the policy or policies reinsured under
this Agreement is increased or decreased because of misstatement of age or sex
that is established after the death of the insured (or the second death in the
case of a last survivor policy), the Reinsurer will share with the Ceding
Company in this increase or decrease of insurance in proportion to the
relationship of the Reinsured Net Amount at Risk to the Total Net Amount at Risk
of the coverage. The amount will be adjusted from the inception of the policy,
and any difference in amounts due between the Parties under this Agreement will
be settled without interest.
F. Return of Premium for Misrepresentations and Suicides
1. If a misrepresentation, misstatement, or omission on an application, or the
death of an insured by suicide, results in the Ceding Company returning the
policy premiums (or monthly deductions) to the policy owner rather than paying
the death benefits under a risk reinsured under this Agreement, the Reinsurer
shall refund to the Ceding Company all of the Reinsurance Premiums it received
on that coverage without interest. This refund paid by the Reinsurer shall be in
lieu of any and all other reinsurance benefits payable on that risk under this
Agreement.
2. In addition, the Reinsurer shall pay its proportionate share of reasonable
third-party investigation and legal expenses connected with the Ceding Company's
decision to return the policy premiums (or monthly deductions) as described
above in Paragraph F.1. This paragraph shall not apply to expenses relating to
rescissions of policies which are determined to be stranger-owned life insurance
policies or investor-owned life insurance policies.
G. Claims Expenses
1. Routine Claims Expenses
The Ceding Company shall pay routine expenses incurred in connection with
settling
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claims. These expenses may include the compensation of agents and employees, and
the expense of routine investigations.
2. Non-Routine Claims Expenses
The Reinsurer will participate in non-routine claims expenses, defined as the
expenses incurred by the Ceding Company in connection with the Contest, or
potential Contest, of a claim. These non-routine claims expenses may include
court costs and investigation, autopsy and legal expenses; they would not
include the compensation of salaried officers and employees of the Ceding
Company. However, if the Reinsurer declines to participate in the Contest of a
claim as described above in Paragraph D.3, the Reinsurer will not share in any
non-routine expenses for the claim that are incurred after the date of the
Reinsurer's release.
3. Claims expenses do not include expenses incurred by the Ceding Company as a
result of a dispute or contest arising out of conflicting claims of entitlement
to policy proceeds.
ARTICLE XIII
EXTRA-CONTRACTUAL OBLIGATIONS
The Reinsurer shall not participate in Extra-Contractual Obligations that are
awarded against the Ceding Company as a result of an act, omission, or course of
conduct committed solely by the Ceding Company, its agents, or its
representatives in connection with claims covered under this Agreement.
The Reinsurer will pay its share of Extra-Contractual Obligations, to the extent
permitted by law, if the Reinsurer in writing recommended, consented to, or
explicitly ratified the act or course of conduct of the Ceding Company that
ultimately resulted in the assessment of the Extra-Contractual Obligations.
In the event there is a dispute as to whether Extra-Contractual Obligations or
any portion thereof resulted from an act or course of conduct recommended,
consented to, or explicitly ratified by the Reinsurer, the matter shall be
subject to dispute resolution in accordance with this Agreement.
For the purposes of this Agreement, "Extra-Contractual Obligations" shall mean
any Punitive Damages, Compensatory Damages, or Statutory Penalties, as defined
below, paid or payable by the Ceding Company as a result of an action arising
under, relating to, or in connection with a Contest:
"Punitive Damages" are those damages awarded as a penalty, the amount of which
is neither governed nor fixed by statute.
"Compensatory Damages" are those amounts awarded to compensate for the actual
damages sustained, and are not awarded as a penalty, nor fixed in amount by
statute.
"Statutory Penalties" are those amounts awarded as a penalty, but are fixed in
amount by statute.
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ARTICLE XIV
DAC TAX SECTION 1.848-2(g)(8) ELECTION
The Ceding Company and the Reinsurer jointly agree to the DAC Tax Election
pursuant to Section 1.848-2(g)(8) of the Income Tax Regulations (the "Treasury
Regulations") issued under Section 848 of the Internal Revenue Code of 1986, as
amended (the "Code"). As used in this Article, the terms "net positive
consideration," "specified policy acquisition expenses," and "general deductions
limitation" are defined by reference to Treasury Regulations Section
1.848-2(g)(8) and Code Section 848 as of the Effective Date.
As part of this DAC Tax Election, both Parties agree:
A. That the Party with the net positive consideration for this Agreement for
each taxable year will capitalize specified policy acquisition expenses with
respect to this Agreement without regard to the general deductions limitation of
Code Section 848(c)(1);
B. To exchange information pertaining to the amount of net consideration under
this Agreement each year to ensure consistency; and
C. That the method and timing of the exchange of this information shall be as
follows:
1. The Ceding Company shall submit a schedule to the Reinsurer by May 1 of each
year with its calculation of the net consideration for the preceding calendar
year.
2. The Reinsurer shall, in turn, complete the schedule by indicating acceptance
of the Ceding Company's calculation of net consideration or shall note in
writing any discrepancies, and then return the completed schedule to the Ceding
Company by June 1 of each year.
3. If there are any discrepancies between the Ceding Company's and the
Reinsurer's calculations of net consideration, the Parties shall act in good
faith to resolve these discrepancies in a manner that is acceptable to both
Parties by July 1 of each year.
4. Each Party shall attach the final schedule to its respective U.S. federal
income tax return for each taxable year in which consideration is transferred
under this Agreement. The schedule shall identify this Agreement, shall restate
the election described in this Article, and shall be signed by a duly authorized
representative of each Party.
D. This DAC Tax Election shall be effective on the Effective Date of this
Agreement and shall be effective for all years for which this Agreement remains
in effect.
E. The Ceding Company and the Reinsurer each represent and warrant that they
are subject to U.S. taxation under the provisions of either Subchapter L of
Chapter 1 or Subpart F of Part III of Subchapter N of Chapter 1 of the Code.
F. Should the Reinsurer breach the representation and warranty of tax status
set forth in this Article, the Reinsurer agrees to indemnify and hold the Ceding
Company, its directors, officers, employees, agents, and shareholders harmless
from any and all liability, loss, damages, fines, penalties, interest, and
reasonable attorney's fees that the Ceding Company, its directors, officers,
employees, agents, and shareholders may sustain by reason of such breach.
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ARTICLE XV
INSOLVENCY
A. Insolvency of the Ceding Company
In the event of the insolvency of the Ceding Company, as determined by the
regulatory agency responsible for such determination, all reinsurance will be
payable by the Reinsurer on the basis of the liability of the Ceding Company
under policies reinsured under this Agreement directly to the liquidator,
receiver or statutory successor of the Ceding Company, without diminution
because of the insolvency of the Ceding Company.
In the event of the insolvency of the Ceding Company, the liquidator, receiver
or statutory successor will give written notice to the Reinsurer of all pending
claims against the Ceding Company on any policy reinsured under this Agreement
within a reasonable time after such claim is filed in the insolvency proceeding.
While a claim is pending, the Reinsurer may investigate and interpose, at its
own expense, in the proceeding where such claim is to be adjudicated, any
defense or defenses which it may deem available to the Ceding Company or its
liquidator, receiver or statutory successor.
The expenses incurred by the Reinsurer will be chargeable, subject to court
approval, against the Ceding Company as part of the expense of the insolvent the
Ceding Company to the extent of a proportionate share of the benefit which may
accrue to the Ceding Company solely as a result of the defense undertaken by the
Reinsurer. Where two or more reinsurers are involved in the same claim and a
majority in interest elect to interpose a defense or defenses to any such claim,
the expense will be apportioned in accordance with the terms of this Agreement
as though such expense had been incurred by the Ceding Company.
B. Insolvency of the Reinsurer
For purposes of this Section B, the Reinsurer shall be deemed insolvent when the
Reinsurer:
1. applies for or is subject to the appointment of a receiver, rehabilitator,
conservator, liquidator, supervisor or statutory successor of its properties or
assets;
2. is adjudicated as bankrupt or insolvent;
3. files or consents to the filing of a petition in bankruptcy, seeks
reorganization to avoid insolvency or makes formal application for any
bankruptcy, dissolution, liquidation or similar law or statute; or
4. becomes the subject of an order to rehabilitate or an order to liquidate as
defined by the insurance code of the jurisdiction of the Reinsurer's domicile.
The effective date of the insolvency shall be the date on which the above
described event occurred.
In the event of Reinsurer's insolvency, the Ceding Company may recapture all of
the inforce policies reinsured under this Agreement by giving written notice to
the Reinsurer of its intent to do so. The effective date of recapture will be no
earlier than the effective date of the Reinsurer's insolvency.
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ARTICLE XVI
RECAPTURE OF REINSURED BUSINESS
A. The Ceding Company has the right to recapture risks reinsured under this
Agreement as described under the following circumstances:
1. If the Ceding Company does not agree with the rate increase on a Plan(s) of
Insurance in accordance with Section VI.E;
2. If the Reinsurer fails to provide security in accordance with Section
VIII.C;
3. If the Reinsurer is delinquent on payment of an undisputed net amount due in
accordance with Section XII.C.3; or
4. If the Reinsurer is deemed insolvent, in accordance with Article XV.
B. In the event recapture is elected based on Section A (1) described above, no
recapture fees are due and no reserves will be transferred.
C. In the event recapture is based on any of the other circumstances described
in Section A above:
1. The Ceding Company and the Reinsurer shall mutually agree upon the recapture
terms -- however, if no such agreement can be reached, an independent actuary
shall be hired to determine the value of the business to be recaptured. The
costs of the independent actuary will be shared equally between the Ceding
Company and the Reinsurer;
2. The value of the business to be recaptured will be based on reasonable
actuarial assumptions as to interest, mortality, and lapse rates; and
3. Other actuarial assumptions and considerations used to value the business to
be recaptured shall include, but not be limited to:
a. Projected future claims costs;
b. Projected future Reinsurance Premiums;
c. Statutory reserve requirements;
d. NAIC risk based capital and/or other capital measures, which are reflective
of statutory capital levels, that should be maintained for an insurance company
with financial strength ratings comparable to those of the Ceding Company; and
e. Any other considerations considered relevant by the Parties or the
independent actuary.
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ARTICLE XVII
OFFSET
Any undisputed debts or credits, in favor of or against either the Reinsurer or
the Ceding Company, with respect to this Agreement or any other Individual Life
reinsurance agreement between the Parties, are deemed mutual debts or credits
and may be offset, and only the balance will be allowed or paid provided the
Party that seeks to avail itself of this right of offset is not in breach of any
provision of this Agreement.
Individual Life shall be that reporting segment, as defined in the United States
Securities and Exchange Commission Form 10-K and Form 10-Q, for The Hartford
Financial Services Group, Inc., or that reporting segment's successor.
To the extent permitted by applicable law, the right of offset will not be
affected or diminished because of the insolvency of either Party.
ARTICLE XVIII
DISPUTE RESOLUTION
In the event that any dispute between the Parties under this Agreement cannot be
resolved to mutual satisfaction, the dispute will first be subject to good-faith
negotiation, as described below, in an attempt to resolve the dispute without
the need to institute formal arbitration proceedings.
Within ten (10) calendar days after one of the Parties has given the other the
first written notification of the specific dispute, each of the Parties will
appoint a designated officer to attempt to resolve the dispute. The designated
officers will meet at a mutually agreeable location as early as possible and as
often as necessary, in order to discuss the dispute and to negotiate in good
faith without the necessity of any formal arbitration proceedings. During the
negotiation process, all reasonable requests made by one officer to the other
for information will be honored. The designated officers will decide the
specific format for such discussions.
If the designated officers cannot resolve the dispute within thirty (30)
calendar days of their first meeting, both Parties agree that they will submit
the dispute to formal arbitration. However, the Parties may agree in writing to
extend the negotiation period for an additional thirty (30) calendar days.
No later than fifteen (15) calendar days after the final negotiation meeting,
the designated officers taking part in the negotiation will give both Parties
written confirmation that they are unable to resolve the dispute, and that they
recommend establishment of formal arbitration in accordance with Article XIX.
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ARTICLE XIX
ARBITRATION
It is the intention of the Parties that the customs and practices of the life
and health insurance and life and health reinsurance industries will be given
full effect in the operation and interpretation of this Agreement. The Parties
agree to act in all matters with good faith. However, if, in accordance with
Article XVIII, the Parties cannot mutually resolve a dispute that arises out of
or relates to this Agreement, the dispute will be decided through arbitration as
follows:
An arbitration panel consisting of three past or present officers of life and
health insurance or life and health reinsurance companies not affiliated with
either of the Parties in any way will settle the dispute. Each Party will
appoint one arbitrator within thirty (30) calendar days of the demand for formal
arbitration and the two so appointed shall then appoint the umpire. If either
Party refuses or neglects to appoint an arbitrator within the thirty (30)
calendar days, the other Party may appoint the second arbitrator. If the two
arbitrators cannot agree on the umpire within thirty (30) calendar days after
both arbitrators have been appointed, the two arbitrators shall select an umpire
in accordance with paragraph 6.7 of the Procedures for Resolution of U.S.
Insurance and Reinsurance Disputes, dated September 1999.
Within thirty (30) calendar days after the appointment of the umpire, the
arbitration panel shall meet and determine timely periods for briefs, discovery
procedures, and schedules for hearings. The arbitration shall take place at a
location determined by the arbitration panel and, insofar as the arbitration
panel looks to the substantive law, it shall consider the laws of the state of
Connecticut. The arbitration panel shall have the power to set all procedural
rules for the arbitration, including the discretion to make any order with
respect to pleadings, discovery, depositions, scheduling, the hearing, reception
of evidence and any other matter whatsoever relating to the conduct of the
arbitration.
Within sixty (60) calendar days after the beginning of the arbitration
proceedings the arbitration panel will issue a written, reasoned, decision on
the dispute and a statement of any award to be paid as a result. The decision
will be based on the terms and conditions of this Agreement as well as the usual
customs and practices of the insurance and reinsurance industry, rather than on
strict interpretation of the law. The decision will be final and binding on both
Parties and there will be no further appeal. Judgment upon the award may be
entered in any court having jurisdiction thereof.
In the absence of a decision to the contrary by the arbitration panel, each
Party shall bear the expense of its own arbitration activities, including, but
not limited to, its appointed arbitrator's fees, outside attorney fees, witness
fees, expenses incurred in the taking or preservation of testimony, and other
related expenses.
The Parties shall jointly and equally bear the expense of the third arbitrator
and other costs directly attended to the arbitration proceeding, provided that
neither Party's liability for such costs shall ever exceed 50% of the total of
such costs, regardless of the other Party's failure to pay.
The Parties may mutually agree to extend any of the periods shown in this
Article.
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ARTICLE XX
TERMINATION OF THIS AGREEMENT FOR NEW BUSINESS
A. Either Party may terminate this Agreement, as it applies to reinsurance of
new business being issued by the Ceding Company:
1. immediately upon written notice to the other Party, if that other Party
becomes insolvent as described in Article XV; or
2. with one hundred twenty (120) days advance written notice to the other Party;
or
3. with sixty (60) days advance written notice to the other Party, if that other
Party breaches a material term of this Agreement, unless such breach is
substantially cured by the offending Party within such notice period.
B. After termination, the Parties shall remain liable under the terms of this
Agreement for:
1. reinsurance of policies that becomes effective prior to termination of this
Agreement;
2. reinsurance of policies with an application date on or before the effective
date of termination; and
3. reinsurance that becomes effective as a result of coverage changes described
in Article X, with the exception of fully underwritten increases subject to
Section X.B.1.a.
C. The Ceding Company shall continue to cede, and the Reinsurer shall continue
to accept, any new business issued prior to the termination of this Agreement.
ARTICLE XXI
CONFIDENTIALITY
During the course of performance under this Agreement, a Party (the "Owner") or
its agent may make available to the other Party (the "Recipient") or its agent
certain technical materials such as manuals, policyholder lists, data files and
the data contained therein, systems, forms, methods, processes and procedures,
and other information or data (collectively, "Proprietary Information") that is
proprietary or trade secret in nature. Proprietary Information shall
specifically exclude information that was previously known to the Recipient or
that is or was publicly disclosed to the Recipient by any party not known by the
Recipient to be under a duty to retain such information as confidential.
Each Party acknowledges that all Proprietary Information is offered for the sole
purpose of performing its obligations under this Agreement. Further, each Party
agrees that the Owner is deemed to be the sole owner of such Proprietary
Information and that any use, furnishing, disclosure, dissemination,
publication, or revealing of Proprietary Information in any way by the Recipient
to any person, organization, firm or government agency contrary to applicable
law or to the terms of this Agreement, shall obligate the Recipient to indemnify
and hold the Owner harmless from any damages, litigation, liability, claimed
liability, claims, and expenses -- including reasonable attorneys' fees and
incidental expenses -- resulting from any such improper use, furnishing,
disclosure, or revealing of Owner's Proprietary Information, whether occurring
during the term of this Agreement or thereafter, except to the
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extent that any such loss or damage was caused or contributed to by the Owner.
The Ceding Company acknowledges that the Reinsurer can aggregate the Ceding
Company's Proprietary Information with other companies reinsured with the
Reinsurer as long as the data cannot be identified as belonging to the Ceding
Company.
The Parties shall hold all Proprietary Information in trust and confidence and
shall use Proprietary Information only for the purposes of this Agreement.
Unless required by applicable law, neither Party shall disclose any Proprietary
Information without the express written consent of the other Party.
Notwithstanding the foregoing, the Parties may disclose Proprietary Information
to their Representatives who need such Proprietary Information to carry out the
purposes for which it was disclosed -- it being understood that the Party
disclosing the Proprietary Information shall inform its Representatives of the
confidential nature of the Proprietary Information, shall cause such
Representatives to observe the terms of this Agreement, and shall be liable to
the Owner for any breach of this Agreement by itself or by any of its
Representatives. The term "Representatives," as used in this Agreement, shall
mean a Party's directors, officers, employees, retrocessionaires, partners,
agents, other controlling persons, and professional advisors, including but not
limited to attorneys, accountants, actuaries, and intermediaries.
In the event the Recipient or its Representative breaches this obligation, the
Owner shall have all rights and remedies available under law and equity,
including the right to protect its Proprietary Information by injunction,
without proving economic loss, which the Parties acknowledge and concede is
appropriate and necessary to protect the value of the Owner's Proprietary
Information.
Notwithstanding anything herein to the contrary, except as reasonably necessary
to comply with applicable securities laws, each Party (and each Representative
of such Party) may consult any tax advisor regarding the U.S. federal income tax
treatment or tax structure of the transaction ("Tax Treatment"), and disclose to
any and all persons, without limitation of any kind, the Tax Treatment and all
materials of any kind (including opinions or other tax analyses) that are
provided to such Party relating to the Tax Treatment. This permission to
disclose the Tax Treatment is limited to any facts relevant to the Tax Treatment
and does not include information relating to the identity of the Parties.
In the event that any Party is served with a subpoena, request for production of
documents, other legal process, or request by regulator, such Party shall
immediately notify, and send a copy of such subpoena, other legal process, or
regulatory request to, the other Party so that the other Party may reasonably
determine whether any of its Proprietary Information may be included in the data
required to be produced. Such other Party may, at its own expense, take such
legal action as it deems necessary to preserve the confidentiality of its
Proprietary Information or may waive its rights to do so.
To the extent possible, Proprietary Information shall be promptly destroyed upon
the termination of this Agreement or, with respect to any particular data files
and data, on such earlier date that the same are no longer required by Recipient
in order to continue to perform its obligations hereunder. The Recipient will
not be obligated to destroy any Proprietary Information that is retained for
back-up or archiving purposes, in accordance with a document retention policy,
or that the Recipient, in the opinion of counsel, is legally compelled to keep
and store.
The Parties agree to immediately notify each other, in writing, of all
circumstances surrounding any known or potential access to, or possession of,
Proprietary Information by any person other than persons authorized by this
Agreement. Such notice shall be provided as a material communication under
Article XXIII and shall include, but not be limited to, the name and address of
each such unauthorized person.
This Article shall survive the termination of this Agreement.
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ARTICLE XXII
GENERAL PROVISIONS
A. Policy Forms
When requested, the Ceding Company will furnish the Reinsurer with a sample copy
of each policy and rider form that applies to the Plans of Insurance to be
reinsured hereunder.
B. Severability
If any provision of this Agreement shall be declared or found to be illegal,
invalid, unenforceable, or void, the Parties shall be relieved of their
obligations under such provision. The validity of the remaining provisions shall
not be affected. To the extent possible, the Parties shall work in good faith to
amend this Agreement to address such provision.
C. Survival
All provisions of this Agreement shall survive its termination to the extent
necessary to carry out the purposes of this Agreement or to ascertain and
enforce the Parties' rights or obligations hereunder existing at the time of its
termination.
D. Non-Waiver
No act, delay, omission, course of dealing or prior transaction by or between
the Parties to this Agreement shall constitute a waiver of any right or remedy
under this Agreement. No waiver of any right or remedy under this Agreement
shall be construed to be a waiver of any other or subsequent right or remedy
under this Agreement.
E. Currency
The Reinsurance Premiums and benefits payable under this Agreement will be
payable in United States Dollars.
F. Definitions of Terms in Policies
Terms that are not defined in this Agreement will have the meaning conferred on
them in the underlying reinsured contracts. Such terms include, but may not be
limited to: Monthly Activity Date, Monthly Deduction Amount, Account Value, and
Policy Protection Account.
G. Governing Law
This Agreement shall be governed by the laws of the State of
Connecticut,
exclusive of the rules with respect to conflicts of law.
H. Assignment and Transfer
The rights, duties and obligations of the Parties under this Agreement shall not
be assigned or transferred, in whole or in part, except as otherwise provided
herein, by either Party without the prior written consent of the other Party.
Such consent shall not be unreasonably withheld. This provision is not intended
to preclude the Reinsurer from retroceding the reinsurance on an indemnity
basis, nor to prevent successors in interest from having rights and obligations
under this Agreement.
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I. Execution of Agreement in Counterparts
This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original, but all of which shall constitute one and the same
instrument.
J. Force Majeure
Neither Party shall be liable for any delay or non-performance of any covenant
contained herein nor shall any such delay or non-performance constitute a
default hereunder, or give rise to any liability for damages if such delay or
non-performance is caused by an event of "Force Majeure." As used herein, the
term "Force Majeure" means: an event, explosion, action of the elements, strike
or other labor relations problem; restriction or restraint imposed by law, rule,
or regulation of any public authority, whether federal, state or local, and
whether civil or military; act of any military authority or international
terrorist group; interruption of transportation, communication, or transmission
facilities; or any other cause that is beyond the reasonable control of such
Party and that, by the exercise of reasonable diligence, such Party is unable to
prevent. The existence of any event of Force Majeure shall extend the term of
performance on the part of such Party to complete performance in the exercise of
reasonable diligence after the event of Force Majeure has been removed.
K. Material Compliance Provision
The Parties represent that, to the best of their knowledge, they are in
substantial compliance with all state and federal laws material to the business
reinsured under this Agreement. In the event that either Party is found to be
noncompliant with any law material to this Agreement, this Agreement will remain
in effect and the non-compliant Party will indemnify the other Party for any
direct loss that Party suffers as a result of the noncompliance and, to the
extent practicable, will remedy the noncompliance as soon as possible.
L. Representations and Warranties and Good Faith
The Parties have entered into this Agreement in reliance upon mutual
representations and warranties.
Each Party represents to the other that, as of the Effective Date of this
Agreement, it was solvent on a statutory basis in all states in which it is
licensed to transact business.
The Ceding Company represents and warrants to the Reinsurer that it provided the
Reinsurer with a request for proposal and supporting materials associated
therewith on or about January 21, 2008 (the "Request for Proposal") and
acknowledges that the Reinsurer has relied on these documents and such
representations as well as the Reinsurer's expertise, knowledge, and experience
in the life insurance and life reinsurance industries, in its decision to enter
into this Agreement.
The Ceding Company represents, to the best of its knowledge, as of the date it
executed this Agreement that:
1. it was not aware of any errors in the Request for Proposal;
2. any assumptions made in compiling the Request for Proposal were based upon
informed judgment and were consistent with sound actuarial principles;
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3. all factual information contained in the Request for Proposal was correct,
complete, and accurate in all material respects;
4. the underwriting, administration and claims practices it employed were
consistent with those of a prudent life insurance company.
In addition, the Parties agree that the principles of good faith traditional to
life reinsurance shall be adhered to in the performance of this Agreement, in
the underwriting and administration of the business reinsured hereunder, and in
their dealing with each other. Pursuant to such principles, the Ceding Company
shall inform the Reinsurer in writing of any material changes in its
underwriting practices and guidelines, administration and/or claims practices
for the Reinsurer's consideration and written approval. In addition, the Ceding
Company shall inform the Reinsurer of any changes in its pricing information
which would, in a prudent actuary's opinion, change the risk characteristics of
the business reinsured hereunder (e.g., changes that would affect the
distribution by risk categories) for the Reinsurer's consideration and written
approval.
If the Reinsurer does not consent to any such changes in writing, the Reinsurer
reserves the right to decline reinsurance coverage on such policies and/or
negotiate a corresponding adjustment of the reinsurance terms and conditions for
the risks reinsured hereunder.
M. Expenses
The Ceding Company shall pay the expense of all medical examinations, inspection
fees, and other charges in connection with the issuance of the insurance
reinsured under this Agreement.
N. Taxes
The Reinsurer will not reimburse the Company for premium taxes or other
insurance-related taxes paid on business reinsured under this Agreement.
O. Inspection of Records
Each Party or its authorized representatives will have the right, at any
reasonable time and upon reasonable advance notice to inspect the other Party's
documents and records that relate to this Agreement and the business that is the
subject matter of this Agreement. The Ceding Company's right of inspection shall
be limited to the Reinsurer's underwriting papers, claims or administration
files related to the business reinsured under this Agreement.
Each Party will cooperate with and facilitate any such inspection, including
providing a reasonable workspace to conduct the inspection. Upon the request of
the inspecting Party, the other Party will make available such officers and
employees as the inspecting Party may reasonably request to provide information
relating to the business reinsured under this Agreement.
All expenses of conducting the inspection will be the sole responsibility of the
inspecting Party.
This Section will survive the termination of this Agreement.
P. Short-Term Interest
For certain payments as specified in this Agreement that are due from one Party
to the other Party, the Party owed has the right to charge the other Party
interest on those payments. If that right is exercised, such interest will be
computed, from the date the payment is due to the date
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
34
payment is made, using the short-term interest method.
Interest under the short-term interest method will accrue at an effective annual
rate set equal to the lesser of (i) a rate equal to the sum of 175 basis points
(1.75%) plus the annualized Three Month London Interbank Offering Rate (LIBOR)
published in the Wall Street Journal (or, if not available, a comparable
publication agreed upon by the Parties) on the due date of the payment, if the
due date is a business day, or if not, on the first business day following the
due date, or (ii) the maximum annual rate allowed by law for this purpose in the
governing-law state specified above in Section G.
The effective annual interest rate to be used under the short-term interest
method for a payment due will be reset every three months after such due date,
as necessary, if the payment accrues interest for a period longer than three
months. If multiple payments are accruing interest under one computation, then
the rate will be reset every three months after the due date of the earliest
such payment, and the reset rate for each successive period shall apply to
accrue interest on all such payments accrued during such period.
Q. OFAC
It is the intention of the Parties to comply with all laws, statutes,
regulations, and rules applicable to the business reinsured under this
Agreement, including, but not limited to, the requirements of the United States
Department of the Treasury's Office of Foreign Asset Control ("OFAC").
For the purposes of this Agreement, a "Prohibited Person" is a Specially
Designated National and Blocked Person as defined by OFAC and a "Sanctioned
Country" is collectively a department, agency, branch, instrumentality,
government-owned entity or representative of the government of a sanctioned or
an embargoed country as identified by OFAC.
Should either Party discover, or otherwise become aware, that a policy, which is
reinsured under this Agreement, insures, is owned by, or in is any way
controlled by a Prohibited Person or has been made in violation of the laws, the
Party who first becomes aware of the violation will notify the other Party and
the Parties will cooperate in order to take all necessary corrective actions.
Such reinsurance cession will be null, void, and of no effect from its
inception, to the same extent as if the policy had never been ceded. In such
event, each Party will be restored to the position it would have occupied if the
violation had not occurred, including the return of any payments received,
unless prohibited by law.
R. Changes in Retention Limit
If the Ceding Company changes its maximum Retention Limit as shown in Exhibit
II, it shall provide the Reinsurer with written notice of the intended change
thirty (30) days in advance of the effective date. The CCARet%, as shown in
Schedule B, will remain unchanged for new and inforce business, unless mutually
agreed.
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
35
ARTICLE XXIII
NOTICES AND COMMUNICATIONS
A. Material Communications
For the purpose of this Agreement, "Material Communications" shall be defined as
those communications that are associated with material breach of this Agreement,
termination or recapture of this Agreement, the resolution of disputes by
arbitration, negotiation or court proceedings under this Agreement, a change in
or loss of the Reinsurer's licensing or accreditation, and/or confidentiality
and compliance provisions set forth in this Agreement.
All material communications will be addressed as follows:
If to the Ceding Company: If to the Reinsurer:
Individual Life Director of Reinsurance, S-6
Reinsurance
Hartford Life Insurance Companies The Canada Life Assurance Company
000 Xxxxxxxxx Xxxxxx 000 Xxxxxxxxxx Xxxxxx
Xxxxxxxx, XX 00000 Xxxxxxx, XX X0X 0X0
Facsimile: (000) 000-0000 (000) 000-0000
Copies (which shall not constitute Copies (which shall not constitute
notice) to: notice) to:
Corporate Reinsurance Reinsurance Xxxxxx Xxxxxxxxxx, X-0
Hartford Life Insurance Companies The Canada Life Assurance Company
000 Xxxxxxxxx Xxxxxx 000 Xxxxxxxxxx Xxxxxx
Xxxxxxxx, XX 00000 Xxxxxxx, XX X0X 0X0
Facsimile: (000) 000-0000 (000) 000-0000
Reinsurance Counsel Reinsurance Legal Counsel, S-6
Hartford Life Insurance Companies The Canada Life Assurance Company
000 Xxxxxxxxx Xxxxxx 000 Xxxxxxxxxx Xxxxxx
Xxxxxxxx, XX 00000 Xxxxxxx, XX X0X 0X0
Facsimile: (000) 000-0000 (000) 000-0000
or such other address or facsimile number as one Party may provide to the other
Party by routine communication given as described under Section B. The foregoing
shall not preclude the effectiveness of actual written notice given to a Party
at any address or by any means.
B. Other Communications
All other communications will be sent to the contact either (a) provided by the
receiving party, or (b) identified in the course of routine administration of
this Agreement.
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
36
C. Notices
All notices with regard to this Agreement shall be in writing and shall be
deemed to have been duly given (i) on the date when delivered personally; (ii)
on the date sent by facsimile transmission or electronic mail with proof of
delivery; or (iii) on the earlier of the date received and the date three (3)
business days after any such notice was sent by nationally recognized courier or
by first-class U.S. mail, postage prepaid, return receipt requested.
EXECUTION
In witness whereof, the Parties have, by their duly authorized representatives,
executed this Agreement in duplicate, each of which shall be deemed an original
but both of which together shall constituted one and the same instrument, on the
dates indicated below, with an effective date of October 1, 2008:
THE CANADA LIFE ASSURANCE COMPANY
By: /s/ Xxxxxx Xxxxxx By: /s/ Xxxx-Xxxxxxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxx Xxxxxx, FSA, FCIA, MAAA Name: Xxxx-Xxxxxxxx Xxxxxx
Title: Senior Vice President Life Title: Senior Vice President, Life
Reinsurance Reinsurance
Date: December 23/10 Date: December 28, 2010
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxxx Xxxxxxxxx Attest: /s/ Xxxxxxx X. Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxxx Xxxxxxxxx Name: Xxxxxxx X. Xxxxxx
Title: Assistant Vice President and Title: Senior Vice President and
Actuary Actuary
Date: 12/22/2010 Date: 12/22/2010
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
37
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
SINGLE LIFE PLANS OF INSURANCE
NAR BASE POLICY
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE* ELIGIBILITY DATE**
----------------------------------------------------------------------------------------------------------------------------
Stag UL 1980 CSO M/F S/NS Ultimate ALB A 10/01/2008
Hartford Bicentennial UL Founders 2001 CSO M/F S/NS Ultimate ANB A 10/01/2008
Hartford UL CV 1980 CSO M/F S/NS Ultimate ALB A 10/01/2008
Stag Wall Street VUL 1980 CSO M/F S/NS Ultimate ALB A 10/01/2008
Stag Protector II VUL 1980 CSO M/F S/NS Ultimate ALB A 10/01/2008
Hartford Leaders VUL Legacy 2001 CSO M/F Composite Ultimate ANB A 10/01/2008
Stag Accumulator II VUL 1980 CSO M/F Unismoke Ultimate ALB A 10/01/2008
Hartford Leaders VUL Liberty (a) 1980 CSO M/F Unismoke Ultimate ANB A 10/01/2008
Hartford Leaders VUL Liberty (b) 2001 CSO M/F Composite Ultimate ANB A 10/01/2008
Life Solutions II UL (a) 1980 CSO M/F S/NS Ultimate ALB A 10/01/2008
Life Solutions II UL (b) 2001 CSO M/F S/NS Ultimate ALB A 10/01/2008
Hartford Advanced Universal Life 2001 CSO M/F S/NS Ultimate ALB B 10/01/2008
Hartford Bicentennial UL Freedom (a) 2001 CSO M/F S/NS Ultimate ANB B 10/01/2008
Hartford Bicentennial UL Freedom (b) 2001 CSO M/F S/NS Ultimate ANB A 07/01/2010
Hartford Quantum II VUL (a) 2001 CSO M/F S/NS Ultimate ALB A 10/01/2008
Hartford Quantum II VUL (b) 2001 CSO M/F S/NS Ultimate ANB A 10/01/2008
Hartford ExtraOrdinary Whole Life (a) 2001 CSO M/F S/NS Ultimate ALB A 10/01/2008
Hartford ExtraOrdinary Whole Life (b) 2001 CSO M/F S/NS Ultimate ANB A 10/01/2008
Hartford Bicentennial XX Xxxxxxxx XX 0000 XXX X/X X/XX Xxxxxxxx ANB A 03/05/2010
Hartford Bicentennial UL Founders II
Extended Value Option 2001 CSO M/F S/NS Ultimate ANB A 03/05/2010
Hartford Frontier Indexed UL 2001 CSO M/F S/NS Ultimate ANB A 09/07/2010
Hartford Frontier Indexed UL
Extended Value Option 2001 CSO M/F S/NS Ultimate ANB A 09/07/2010
------------
* NAR Type is described in Schedule B.
** Policies and riders issued with a policy issue date on or after the Base
Policy Eligibility Date or the Rider Eligibility Date shown may qualify for
automatic reinsurance under the terms of this Agreement.
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
38
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
SINGLE LIFE PLANS OF INSURANCE
RIDERS PROVIDING DEATH BENEFITS
THAT ARE ELIGIBLE FOR REINSURANCE RIDER ELIGIBILITY DATE**
--------------------------------------------------------------------------------
Primary Term Insured Rider 10/01/2008
Other Covered Insured Term Life Rider 10/01/2008
Cost of Living Adjustment (COLA) Rider 10/01/2008
RIDERS THAT PROVIDE ADDITIONAL BENEFITS
BUT THAT ARE NOT ELIGIBLE FOR REINSURANCE RIDER ELIGIBILITY DATE**
--------------------------------------------------------------------------------
Accidental Death Benefit (ADB) Rider 10/01/2008
Accelerated Benefit Rider (ABR) 10/01/2008
LifeAccess Accelerated Benefit Rider (LAABR) 10/01/2008
Policy Continuation Rider 10/01/2008
Policy Protection Rider (PPR) 10/01/2008
Enhanced No Lapse Guarantee Rider 10/01/2008
RIDERS THAT PROVIDE ADDITIONAL BENEFITS
BUT THAT ARE NOT ELIGIBLE FOR REINSURANCE (CONTINUED) RIDER ELIGIBILITY DATE**
----------------------------------------------------------------------------------
Lifetime No Lapse Guarantee Rider 10/01/2008
Guaranteed Minimum Accumulation Benefit (GMAB) Rider 10/01/2008
Paid-Up Life Insurance Rider 10/01/2008
Conversion Option Rider 10/01/2008
Overloan Protection Rider 10/01/2008
Waiver of Specified Amount (WSA) Rider 10/01/2008
Waiver of Monthly Deductions (WMD) Rider 10/01/2008
Children's Life Insurance Rider 10/01/2008
Foreign Travel Exclusion Rider 10/01/2008
Estate Tax Repeal Benefit Rider 10/01/2008
Modified Surrender Value Rider 10/01/2008
Cash Surrender Value Endorsement 10/01/2008
Automatic Premium Payment Rider 10/01/2008
Additional Premium Rider 10/01/2008
Qualified Plan Rider 10/01/2008
Owner Designated Settlement Option Rider 03/05/2010
NOTE: NAR Type for term riders above is C. For COLA Rider, NAR Type follows Base
Policy to which it is attached.
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
39
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
SINGLE LIFE PLANS OF INSURANCE
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING ADDITIONAL DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Primary Insured Term Rider: Provides additional level term life coverage on the
base policy insured.
Other Covered Insured Term Life Rider: Provides level term life coverage on an
insured other than the base policy insured.
Cost of Living Adjustment (COLA) Rider: Provides for biennial face amount
increases, without underwriting, based on increases in the Consumer Price Index.
The maximum amount of any single increase is $50,000. Any increase can be
declined by the policyholder, which stops future increases. Available only at
issue and only for non-substandard issue ages 0 through 60.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS THAT ARE NOT ELIGIBLE FOR REINSURANCE:
Accidental Death Benefit Rider: Pays an additional death benefit if the death on
the insured is caused by a qualifying accident.
Accelerated Benefit Rider: Provides the policyholder up to 100% of the death
benefit, discounted with interest, if the insured's life expectancy is 12 months
or less. After acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
LifeAccess Accelerated Benefit Rider (LAABR): Provides for monthly benefits (up
to 2% of death benefit) if insured meets certain ADL and home-care requirements.
During and after acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
Policy Continuation Rider: Intended to prevent the lapse of highly loaned
policies.
Policy Protection Rider: Protects the death benefit of the base policy and any
primary insured term rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Enhanced No Lapse Guarantee Rider: Provides that the policy will not lapse as
long as cumulative premiums paid less indebtedness less withdrawals are greater
than or equal to the cumulative no lapse guarantee premiums. Length of guarantee
varies by issue age.
Lifetime No Lapse Guarantee Rider: Same as Enhanced No Lapse Guarantee Rider but
with lifetime guarantee.
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
40
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
SINGLE LIFE PLANS OF INSURANCE
Guaranteed Minimum Accumulation Benefit (GMAB) Rider: Provides, at the end of
the GMAB Guarantee Period (usually 20 years), that the policy Account Value will
be increased, if necessary, to equal the sum of gross premiums paid to that
date. There is a small monthly charge and a minimum cumulative premium
requirement to keep the rider in force.
Paid-Up Life Insurance Rider: Similar to the GMAB rider, with the same Guarantee
Period, a monthly charge, and a cumulative premium requirement. At end of the
Guarantee Period, the owner may elect to change coverage to paid-up life using
the Account Value as a 5% NSP to determine the amount of coverage; however, the
amount of coverage will never be lower than the sum of gross premiums paid to
that date. Once elected, premiums are no longer payable.
Conversion Option Rider: During certain policy years and prior to the insured's
attained age 70, the policy may be converted, without evidence of insurability,
to any permanent plan of life insurance the Ceding Company then makes available
for conversions of this policy.
Overloan Protection Rider: Protects a policy from terminating due to overloan.
Waiver of Specified Amount (WSA) Rider: Waives a specified amount monthly while
the insured is disabled.
Waiver of Monthly Deductions (WMD) Rider: Waives monthly deduction amounts while
the insured is disabled.
Children's Life Insurance Rider: Provides level term life coverage for each
child of the insured.
Foreign Travel Exclusion Rider: Provides a limited death benefit (Account Value
less indebtedness) if the insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
Estate Tax Repeal Benefit Rider: Pays the policy Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Modified Surrender Value Rider: Changes the Cash Surrender Value definition (to
equal the Account Value) if the policy is surrendered within 3 years after the
policy issue date.
Cash Surrender Value Endorsement: Provides for enhanced Cash Surrender Value
(equal to the current Account Value) in the event of policy surrender in the
first 4 policy years, unless the policy is exchanged under Section 1035 to
another company's policy.
Automatic Premium Payment Rider: Provides for any Scheduled Premium due and
unpaid by the end of any Policy Grace Period to be paid by an automatic
deduction from the Account Value, if the Account Value exceeds the Guaranteed
Cash Value.
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
41
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
Additional Premium Rider: Allows additional premium amounts to be paid at the
same payment intervals as scheduled premiums.
Qualified Plan Rider: This rider indicates that the policy is owned by a
qualified plan, details the policy owner's reporting responsibilities to the
Ceding Company, and describes features and activities that are unavailable when
the policy is owned by a Qualified Plan.
Owner Designated Settlement Option. This rider allows the policy owner to
designate a Settlement Option to be used for the payment of Death Proceeds.
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
42
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
LAST SURVIVOR PLANS OF INSURANCE
NAR BASE POLICY
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE* ELIGIBILITY DATE**
---------------------------------------------------------------------------------------------------------------------------------
Hartford Leaders VUL Joint Legacy 2001 CSO M/F S/NS Ultimate ALB A 10/01/2008
Hartford Leaders VUL Joint Legacy II 2001 CSO M/F S/NS Ultimate ANB A 10/01/2008
Hartford Advanced Last Survivor UL 2001 CSO M/F S/NS Ultimate ALB B 10/01/2008
Hartford Bicentennial XX Xxxxx Xxxxxxx 0000 XXX X/X X/XX Xxxxxxxx XXX X 10/01/2008
Hartford Bicentennial UL Joint Freedom II(a) 2001 CSO M/F S/NS Ultimate ANB B 10/01/2008
Hartford Bicentennial XX Xxxxx Xxxxxxx XX(x) 0000 XXX M/F S/NS Ultimate ANB A 07/01/2010
------------
* NAR Type is described in Schedule B.
** Policies and riders issued with a policy issue date on or after the Base
Policy Eligibility Date or the Rider Eligibility Date shown may qualify for
automatic reinsurance under the terms of this Agreement.
RIDERS PROVIDING DEATH BENEFITS
THAT ARE ELIGIBLE FOR REINSURANCE RIDER ELIGIBILITY DATE**
--------------------------------------------------------------------------------
Estate Protection Rider (NAR Type is C) 10/01/2008
RIDERS THAT PROVIDE ADDITIONAL BENEFITS
BUT THAT ARE NOT ELIGIBLE FOR REINSURANCE RIDER ELIGIBILITY DATE**
--------------------------------------------------------------------------------
LS Exchange Option Rider 10/01/2008
Policy Protection Rider 10/01/2008
Estate Tax Repeal Rider 10/01/2008
Foreign Travel Exclusion Rider 10/01/2008
Guaranteed Minimum Accumulation Benefit (GMAB) 10/01/2008
Rider
Paid-Up Life Insurance Rider 10/01/2008
Owner Designated Settlement Option Rider 03/05/2010
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Estate Protection Rider: This rider provides last survivor level term life
insurance on the base policy insureds for three years.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
LS Exchange Option Rider: Allows a Last Survivor policy to be split into two
Single Life policies, without new evidence of insurability, if divorce, business
dissolution, or estate-tax repeal or reduction occurs. The face amount of each
new Single Life policy will equal one half of the Last Survivor policy face
amount. Upon a split, reinsurance will continue at point-in-scale rates for each
single life, as documented in Section X.C. (This rider is not available when one
of the insureds is uninsurable or above Table H.)
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
43
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
Policy Protection Rider: Protects the death benefit of the base policy and any
Estate Protection Rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Estate Tax Repeal Rider: This rider will pay the Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Foreign Travel Exclusion: Provides a limited death benefit (Account Value less
indebtedness) if either insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
Guaranteed Minimum Accumulation Benefit Rider and Paid-Up Life Insurance Rider:
Same as Single Life riders.
Owner Designated Settlement Option. Same as Single Life rider.
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
44
SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
AUTOMATIC REINSURANCE: The Ceding Company shall retain its available retention
on each risk, defined below as the Retained Net Amount at Risk, subject to the
applicable Ceding Company's Treaty Retention Limit shown in Exhibit II.
The Reinsurer will automatically reinsure a portion of the remainder of the
risk, called the Reinsured Net Amount at Risk, as defined below in this Schedule
B, not to exceed the Reinsurer's Maximum Automatic Participation Limit, as set
forth in Exhibit II.
FACULTATIVE REINSURANCE: The Reinsurer will reinsure X% (as determined at issue)
of the Total Net Amount at Risk for the risk.
TOTAL ALLOCATION LIMIT (TAL): As shown in Exhibit II.
CEDING COMPANY'S TREATY RETENTION LIMIT (CCTRL): As shown in Exhibit II.
CEDING COMPANY'S ALLOCATED RETENTION (CCAR): As shown in Exhibit II.
CURRENT RETENTION (CURRRET) = Current amount of life insurance retained by the
Ceding Company and its affiliated companies on the life for in-force life
insurance coverage. (For Last Survivor risks, see the Last Survivor Limits and
Retention Worksheet in Exhibit II.)
REINSURER'S ALLOCATED RETENTION (REINSARET): As shown in Exhibit II.
REINSURER'S ATTACHMENT POINT (REINSAPT): As shown in Exhibit II.
NAR TYPE for the Plan of Insurance to be reinsured under this Agreement, as
shown in Schedule A.
STEP 1 -- DETERMINE TOTAL NET AMOUNT AT RISK FOR THE COVERAGE
TOTAL NET AMOUNT AT RISK (TOTNAR)* =
For NAR TYPE A, Death Benefit minus the Account Value.
For NAR TYPE B, Death Benefit minus the Working Reserve, where
Working Reserve = (i) x (ii) / (iii), and
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
45
SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
For NAR TYPE C, Death Benefit.
* In cases where the current Working Reserve is not available, the Ceding
Company may estimate such amount using either the most recent Working
Reserve or the Account Value.
STEP 2 -- DETERMINE NET AMOUNT AT RISK FOR EACH "LAYER" OF COVERAGE
STEP 3 -- DETERMINE THE NAR FOR THE CEDING COMPANY AND THEN FOR THE REINSURER
MINIMUM AUTOMATIC REINSURANCE CESSION:
MINIMUM FACULTATIVE REINSURANCE CESSION:
LEAD REINSURER: Swiss Re Life & Health America Inc.
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
46
SCHEDULE C
FOREIGN NATIONAL UNDERWRITING PROGRAM
FOR SINGLE LIFE PERMANENT POLICIES ONLY; NOT AVAILABLE FOR LAST SURVIVOR
POLICIES
EFFECTIVE OCTOBER 1, 2008
The Ceding Company's Foreign National business shall be automatically reinsured
under the terms of this Agreement, if it meets all the requirements for
Automatic Reinsurance in Section III.A, with the following differences.
TYPE OF REINSURANCE
Risks qualifying under this program will be reinsured on a first-dollar quota
share basis.
CEDING COMPANY'S RETENTION [Redacted]
FOREIGN NATIONAL REINSURANCE POOL SHARE [Redacted]
AUTOMATIC BINDING LIMIT (EXCLUDES CEDING COMPANY'S RETENTION): [Redacted]
JUMBO LIMIT: [Redacted]
TOTAL ALLOCATION LIMIT: [Redacted]
ADDITIONAL PLAN, AMOUNT, AND PAYMENT REQUIREMENTS
1. Permanent life policies only. Term coverage may be considered, but only in
the form of a rider included on a permanent base policy. Last survivor coverage
is excluded from this program.
2. Other than term riders referenced in Paragraph 1, above, no supplemental
benefit coverage, such as accidental death or waiver of premium, will be
allowed.
3. The minimum face amount is as follows: [Redacted]
4. Annual premium or Check-O-Matic premium mode only. The minimum annual
premium is the annual premium to endow. If Check-O-Matic is the premium mode, it
must be arranged with a U.S. Bank.
5. Premiums must be paid in U.S. currency and must be billed to a residence or
bank in the U.S.
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
47
SCHEDULE C
FOREIGN NATIONAL UNDERWRITING PROGRAM
FOR SINGLE LIFE PERMANENT POLICIES ONLY; NOT AVAILABLE FOR LAST SURVIVOR
POLICIES
EFFECTIVE OCTOBER 1, 2008
ADDITIONAL UNDERWRITING AND RISK CLASS GUIDELINES
[Redacted]
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
48
SCHEDULE C
FOREIGN NATIONAL UNDERWRITING PROGRAM
FOR SINGLE LIFE PERMANENT POLICIES ONLY; NOT AVAILABLE FOR LAST SURVIVOR
POLICIES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
49
SCHEDULE D
SPECIAL UNDERWRITING PROGRAMS
EFFECTIVE OCTOBER 1, 2008
The Ceding Company has several special underwriting programs. The majority of
these programs are contained within the Underwriting Brochure entitled "Life
insurance underwriting that opens doors and closes cases", form LCM-05-418-1-09.
Another program, Life Express, effective October 26, 2009, is documented in a
LifeTIMES Bulletin dated October 30, 2009. Both of these publications have been
shared in advance of the execution of this Agreement with the Reinsurer. The
Ceding Company has two additional special underwriting programs not listed in
the Underwriting Brochure, the "Xxxxx Program" and the "Director's Charitable
Award Program", which are listed below.
[Redacted]
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
50
SCHEDULE D
SPECIAL UNDERWRITING PROGRAMS
EFFECTIVE OCTOBER 1, 2008
DIRECTOR'S CHARITABLE AWARD PROGRAM (DCAP) -- FOR LAST SURVIVOR PLANS ONLY
[Redacted]
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
51
SCHEDULE D
SPECIAL UNDERWRITING PROGRAMS
EFFECTIVE OCTOBER 1, 2008
DIRECTOR'S CHARITABLE AWARD PROGRAM (DCAP) -- CONTINUED
[Redacted]
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
52
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
UNDERWRITING MANUALS
The Swiss Re Underwriting Guideline and our internal changes, both of which are
documented in our InfoBase data system, are the primary reference sources we
currently use when arriving at medical offers on cases. Final decisions are
based on all aspects of the case, and at times may differ from the guidelines in
these manuals. They may also differ in situations where our Medical Department
has published guidelines that suggest other ways to underwrite or view an
impairment or test result. Other than the information published by our Medical
Department, however, all variances from our underwriting manuals or department
guidelines should be completely documented in the underwriting file. Financial
and other non-medical underwriting guidelines can be found in the InfoBase
training and documentation system.
[Redacted]
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
53
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
UNDERWRITING REQUIREMENTS -- STANDARD PERMANENT PLANS
[Redacted]
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
54
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
UNDERWRITING REQUIREMENTS -- STANDARD PERMANENT PLANS (CONT'D)
[Redacted]
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
55
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
UNDERWRITING REQUIREMENTS -- STAG WALL STREET VUL
[Redacted]
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
56
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
UNDERWRITING REQUIREMENTS -- STAG WALL STREET VUL (CONT'D)
[Redacted]
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
57
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
UNDERWRITING REQUIREMENTS -- MIDDLE AMERICA (LIFE SOLUTIONS II)
[Redacted]
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
58
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
UNDERWRITING REQUIREMENTS -- MIDDLE AMERICA (LIFE SOLUTIONS II) (CONT'D)
[Redacted]
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
59
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
PREFERRED CLASSES -- ADDITIONAL UNDERWRITING REQUIREMENTS
EFFECTIVE OCTOBER 1, 2008 THROUGH MAY 23, 2010
[Redacted]
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
60
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
PREFERRED CLASSES -- ADDITIONAL UNDERWRITING REQUIREMENTS (CONT'D)
EFFECTIVE OCTOBER 1, 2008 THROUGH MAY 23, 2010
[Redacted]
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
61
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
PREFERRED CLASSES -- ADDITIONAL UNDERWRITING REQUIREMENTS (CONT'D)
EFFECTIVE OCTOBER 1, 2008 THROUGH MAY 23, 2010
[Redacted]
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
62
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
PREFERRED CLASSES -- ADDITIONAL UNDERWRITING REQUIREMENTS (CONT'D) EFFECTIVE MAY
24, 2010
[Redacted]
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
63
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
PREFERRED CLASSES -- ADDITIONAL UNDERWRITING REQUIREMENTS (CONT'D) EFFECTIVE
AUGUST 20, 2010
[Redacted]
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
64
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
65
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
66
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
67
SCHEDULE F
POLICIES ELIGIBLE FOR REINSURANCE UNDER THIS AGREEMENT
Effective October 1, 2008
The following categories of policies are eligible for reinsurance under this
Agreement:
CATEGORY # CATEGORY DESCRIPTION
----------------------------------------------------------------------------------------------------------------------------
1 Policies issued on or after March 1, 2009
2 Policies issued from the Effective Date of this Agreement through February 28, 2009 that were eligible for
automatic reinsurance under one of the following Ceding Company reinsurance pools:
(i) Single Life Excess Pool effective November 1, 2002;
(ii) Advanced UL Pool effective September 1, 2004;
(iii) Last Survivor Excess Pool effective January 1, 2002; and
(iv) Advanced Last Survivor UL Pool effective January 1, 2005,
but that were fully retained by the Ceding Company at the time of processing (see Note below).
Notwithstanding the foregoing, fully retained policies issued during this period in which the insured has a
subsequent policy that is partially or fully ceded to another pool (including the Hartford Term Pool effective
April 10, 2006) will not be eligible for reinsurance under this Agreement.
Note: The Ceding Company completed the processing of Category 2 business in July 2009. At the time of
processing, the Ceding Company paid the Reinsurer Reinsurance Premiums for all policies in Category 2 back to
each policy's effective date.
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
68
EXHIBIT I
REINSURANCE PREMIUM CALCULATION
EFFECTIVE OCTOBER 1, 2008
FOR SINGLE LIFE PLANS OF INSURANCE
REINSURANCE PREMIUM
Reinsurance Premium shall be calculated each month for each risk reinsured as [
(i) + (ii) ] / 12, where:
(i) equals the Yearly Renewable Term (YRT) Reinsurance Premium for the coverage
(as defined below); and
(ii) equals the Annual Flat Extra Reinsurance Premium (as defined below) for
the coverage, where
the sum of [ (i) + (ii) ] shall not exceed the Reinsured Net Amount at Risk for
such coverage, defined in Schedule B.
For the purposes of calculating Reinsurance Premium, the following will be
considered separate coverages: base policy, increases in coverage, and reinsured
riders.
YEARLY RENEWABLE TERM (YRT) REINSURANCE PREMIUM
The YRT Reinsurance Premium for each coverage shall equal (i) x (ii) x (iii) /
1,000, where:
(i) equals [ (a) x (b) ], (the "Base YRT Reinsurance Premium Rate") where:
(a) equals the applicable rate from the tables of Annual Rates per
$1,000 of Reinsured Net Amount at Risk specified in Exhibit III; and
(b) equals the applicable percentage from the tables of YRT Reinsurance
Rate Factors to be Applied to the Annual Rates per $1,000 of
Reinsured Net Amount at Risk specified in Exhibit IV;
(ii) equals the applicable Substandard Table Percentage, specified in Exhibit
V, for the risk; and
(iii) equals the Reinsured Net Amount at Risk for such coverage, defined in
Schedule B.
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
69
EXHIBIT I
REINSURANCE PREMIUM CALCULATION
EFFECTIVE OCTOBER 1, 2008
FOR SINGLE LIFE PLANS OF INSURANCE
ANNUAL FLAT EXTRA REINSURANCE PREMIUM
The Annual Flat Extra Reinsurance Premium for each coverage equals {(i) x [ 1 --
(ii) ] x [(iii) / 1,000]}, where:
(i) equals the applicable annual flat extra rate per 1,000, for the year of
coverage, that the Ceding Company charges for the coverage;
(ii) equals the Flat Extra Allowance Percentage, specified below; and
(iii) equals the Reinsured Net Amount At Risk for such coverage, defined in
Schedule B.
FLAT EXTRA ALLOWANCE PERCENTAGE
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
70
EXHIBIT I
REINSURANCE PREMIUM CALCULATION
EFFECTIVE OCTOBER 1, 2008
FOR LAST SURVIVOR PLANS OF INSURANCE
REINSURANCE PREMIUM
Reinsurance Premium shall be calculated each month for each risk reinsured as
[(i) x (ii) / 1,000] / 12, where:
(ii) equals the Reinsured Net Amount at Risk for the coverage, defined in
Schedule B.
For the purposes of calculating Reinsurance Premium, the following will be
considered separate coverages: base policy, increases in coverage, and reinsured
riders. Reinsurance Premium for a single life rider attached to a last survivor
policy shall be determined in accordance with the Reinsurance Premium
calculations for single life plans of insurance.
YRT REINSURANCE PREMIUM RATE PER 1,000*
The YRT Reinsurance Premium Rate per 1,000 for each life for each coverage shall
equal (i) x (ii) + (iii), but in no event more than 1,000, where:
(i) equals the quantity [ (a) x (b) ], where:
(a) equals the applicable rate from the tables of Annual Rates per
$1,000 of Reinsured Net Amount at Risk specified in Exhibit III; and
(b) equals the applicable percentage from the tables of YRT Reinsurance
Rate Factors to be Applied to the Annual Rates per $1,000 of
Reinsured Net Amount at Risk specified in Exhibit IV;
(ii) equals the applicable Substandard Table Percentage, specified in Exhibit
V, for the risk; and
(iii) equals the Annual Flat Extra Reinsurance Premium per 1,000, as defined
below.
* For purposes of determining the YRT Reinsurance Premium Rate per 1,000, a
life deemed uninsurable will be treated as Table P for 20 years with a $250
flat extra for 10 years.
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
71
EXHIBIT I
REINSURANCE PREMIUM CALCULATION
EFFECTIVE OCTOBER 1, 2008
FOR LAST SURVIVOR PLANS OF INSURANCE
ANNUAL FLAT EXTRA REINSURANCE PREMIUM PER 1,000
The Annual Flat Extra Reinsurance Premium per 1,000 for each coverage equals
{(i) x [ 1 -- (ii)]}, where:
(i) equals the applicable annual flat extra rate per 1,000, for the year of
coverage, that the Ceding Company charges for the coverage; and
(ii) equals the Flat Extra Allowance Percentage, specified below.
FLAT EXTRA ALLOWANCE PERCENTAGE
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
72
EXHIBIT II
RETENTION, BINDING, AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
(FOR SPECIFICS ON CALCULATION OF LIMITS WITH LAST SURVIVOR COVERAGE, SEE
WORKSHEET ON PAGE 4)
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
73
EXHIBIT II
RETENTION, BINDING, AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
(FOR SPECIFICS ON CALCULATION OF LIMITS WITH LAST SURVIVOR COVERAGE, SEE
WORKSHEET ON PAGE 4)
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
74
EXHIBIT II
RETENTION, BINDING, AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
75
EXHIBIT II
RETENTION, BINDING, AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
76
EXHIBIT III
ANNUAL RATES PER $1,000 OF REINSURED NET AMOUNT AT RISK
EFFECTIVE OCTOBER 1, 2008
FOR SINGLE LIFE AND LAST SURVIVOR PLANS OF INSURANCE
AND
FOR AUTOMATIC AND FACULTATIVE REINSURANCE
Annual Rates per $1,000 of Reinsured Net Amount at Risk are provided in the
following attached tables of Exhibit III. They are provided on a Select &
Ultimate basis and vary by:
1. Age basis (Age Nearest Birthday or Age Last Birthday), to align with the
Valuation Mortality Table for the Plan of Insurance;
2. Gender (Male, Female); and
3. Rate class --
a. Preferred Plus Non-Nicotine (PPNN);
b. Preferred Non-Nicotine (PNN);
c. Standard Non-Nicotine (SNN);
d. Preferred Nicotine (PN); and
e. Standard Nicotine (SN).
For Life Solutions II UL plans, Annual Rates per $1,000 of Reinsured Net Amount
at Risk will be determined as follows:
(1) For "Preferred" policies, use the SNN rate class; and
(2) For "Standard" policies, use the SN rate class.
All risks insured by the Ceding Company on a Unisex basis will be reinsured
using gender-specific rates.
Note: If the Annual Rates per $1,000 or YRT Reinsurance Rate Factors shown in
Exhibit IV of this Agreement are changed, the Ceding Company and the Reinsurer
will determine whether the Annual Rates per $1,000 or YRT Reinsurance Rate
Factors for the Non-Excess Risks agreement need to be changed.
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
77
EXHIBIT III
ANNUAL RATES PER $1,000 OF REINSURED NET AMOUNT AT RISK
EFFECTIVE OCTOBER 1, 2008
[ILLEGIBLE]
[Redacted]
EXHIBIT IV
YRT REINSURANCE RATE FACTORS
EFFECTIVE OCTOBER 1, 2008
For Single Life Plans, use applicable factor for issue age, gender, and risk
class from tables above.
For Last Survivor Plans, use (applicable factor for issue age, gender, and risk
class from tables above) x (applicable Last Survivor Factor LSF for gender and
risk class from tables above).
For Life Solutions II UL plans, YRT Reinsurance Rate Factors will be determined
as follows:
(1) For "Preferred" policies, use the SNN rate class; and
(2) For "Standard" policies, use the SN rate class.
Note: If the YRT Reinsurance Rate Factors or the Annual Rates per $1,000 shown
in Exhibit III of this Agreement are changed, the Ceding Company and the
Reinsurer will determine whether the Annual Rates per $1,000 or YRT Reinsurance
Rate Factors for the Non-Excess Risks agreement need to be changed.
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
99
EXHIBIT V
SUBSTANDARD TABLE PERCENTAGES
EFFECTIVE OCTOBER 1, 2008
SUBSTANDARD TABLE PERCENTAGES (SEE EXHIBIT I FOR USAGE)
[Redacted]
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
100
EXHIBIT VI
CONDITIONAL RECEIPT OR TEMPORARY INSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
[LOGO] HARTFORD LIFE INSURANCE COMPANY
THE HARTFORD HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
000 XXXXXXXXXX XXXXX, XXXXXXXX, XX 00000
X.X. XXX 00000, XX. XXXX, XX 00000 - 0271
TEMPORARY INSURANCE AGREEMENT
Proposed Primary Insured: Name: Date of Birth:
Under this Temporary Insurance Agreement ("Agreement"), Hartford Life Insurance
Company or Hartford Life and Annuity Insurance Company ("Company") agrees to
provide a limited amount of life insurance coverage, for a limited period of
time, subject to the terms and conditions set forth below.
WHEN COVERAGE BEGINS
Temporary life insurance coverage under the Agreement becomes effective on the
date this Agreement is signed, subject to all of the following conditions:
a) An Application for Life Insurance with the Company ("Application") or a
Request for Insurance Application with the Company ("Request") has been
completed as of the same date this Agreement has been signed;
b) The answers to the health questions below are "No"; and
c) The Company receives the first full modal premium for the mode selected on
the Application or the Request.
WHEN TEMPORARY INSURANCE COVERAGE TERMINATES -- 90 DAY MAXIMUM
Temporary insurance under this Agreement will terminate on the earliest of:
1. 30 days from the effective date of this Agreement if a required and
requested medical exam, lab test, application interview or medical report has
not been received by the Company;
2. 90 days from the effective date of this Agreement;
3. The date the policy, as applied for, takes effect;
4. The date the Company offers a policy with a risk assessment other than
Standard or a Preferred Class;
5. The date the Company mails a notice of termination of this Agreement to the
Proposed Policyowner at the address set forth in the Application or Request.
If the Company terminates coverage, the collected premium will be refunded
without interest.
WHO IS COVERED
This Agreement provides temporary insurance coverage only for the Primary
Insured. The Primary Insured is the "Proposed Insured" named in the Request, the
"Proposed Insured 1" named in the Application, or "Proposed Insured 1" and
"Proposed Insured 2" named in Applications for survivorship life insurance
coverage. THIS AGREEMENT DOES NOT PROVIDE INSURANCE COVERAGE FOR ANY OTHER
PROPOSED INSUREDS, INCLUDING BUT NOT LIMITED TO, OTHER PROPOSED INSUREDS UNDER
TERM INSURANCE RIDERS AND CHILD RIDERS.
AMOUNT OF LIFE INSURANCE COVERAGE -- $1,000,000 MAXIMUM
If death of a covered Primary Insured occurs while this Agreement is in effect,
the Company will pay a death benefit to the beneficiary designated in the
Application or Request.
The death benefit shall be the LESSER of:
a) The amount of death benefit indicated in the Application or Request, with
respect to the deceased Primary Insured; or
b) $1,000,000.
LIMITATIONS AND CONDITIONS OF COVERAGE
1. If benefits are payable under this Agreement, then no benefit relating to
that loss will be payable under the policy which is applied for.
2. Material misrepresentations or fraud in the answers to the Health Questions
set forth below or in the Application will invalidate this Agreement and the
Company's liability will be limited to a refund of the premium payment.
3. This Agreement does not cover any Primary Insured who is age 71 or over as
of the effective date of this Agreement.
DETACH OWNER'S COPY AT TIME OF APPLICATION
HOME OFFICE COPY
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
101
EXHIBIT VI
CONDITIONAL RECEIPT OR TEMPORARY INSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
LIMITATIONS AND CONDITIONS OF COVERAGE (Continued)
4. This Agreement provides temporary life insurance coverage in the event of
the death of Primary Insured. It does not provide any coverage for other
benefits which may be applied for, including but not limited to, waiver of
premium or accidental death benefits or coverage.
5. There is no coverage under this Agreement if a Primary Insured dies by
suicide. In that event, the Company's liability will be limited to a refund of
the premium payment.
6. There is no coverage under this Agreement if the check or draft submitted as
payment is not honored on the first presentation to the bank.
7. Only an officer of the Company can make, modify, or alter any of the
provisions of this Agreement.
HEALTH QUESTIONS
Has the Primary Insured:
1. Within the past 90 days, other than for pregnancy or childbirth, been
admitted to or treated at a hospital or other medical facility, been advised to
be admitted, or had surgery performed or recommended?
Yes No
2. Within the past 2 years had or been treated for heart disease, chest pain,
stroke, cancer, alcohol or drug use, immune system disorder or had such
treatment recommended by a physician or medical practitioner?
Yes No
NOTE: If either Question #1 or Question #2 above is answered "Yes" or left
blank, no coverage will take effect under this Temporary Insurance Agreement and
any premium received will be refunded.
DECLARATIONS
Each of the undersigned declares, understands and agrees that:
- The answers provided above are complete and true to the best of his/her
knowledge and belief.
- If the answers to the Health Questions contained in this Agreement or the
Application are incorrect, incomplete or untrue, the Company will have the
right to deny benefits under this Agreement.
X Date:
----------------------------------- ------------------------------
Proposed Primary Insured Signature
X Date:
----------------------------------- ------------------------------
Proposed Policy Owner Signature
(if other than the Proposed
Insured)
RECEIPT OF PAYMENT
A premium payment of $ has been submitted with the Application or
Request. Additional premium may be required upon Policy delivery.
All premium checks must be made payable to Hartford Life Insurance Company or
Hartford Life and Annuity Insurance Company. Do not make check(s) payable to the
Agent or leave the payee blank.
X Date:
----------------------------------- ------------------------------
Agent Signature
DETACH OWNER'S COPY AT TIME OF APPLICATION
HOME OFFICE COPY
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
102
EXHIBIT VI
CONDITIONAL RECEIPT OR TEMPORARY INSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
[LOGO] HARTFORD LIFE INSURANCE COMPANY
THE HARTFORD HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
000 XXXXXXXXXX XXXXX, XXXXXXXX, XX 00000
X.X. XXX 00000, XX. XXXX, XX 00000 - 0271
TEMPORARY INSURANCE AGREEMENT
PROPOSED PRIMARY INSURED: NAME: DATE OF BIRTH:
Under this Temporary Insurance Agreement ("Agreement"), Hartford Life Insurance
Company or Hartford Life and Annuity Insurance Company ("Company") agrees to
provide a limited amount of life insurance coverage, for a limited period of
time, subject to the terms and conditions set forth below.
WHEN COVERAGE BEGINS
Temporary life insurance coverage under the Agreement becomes effective on the
date this Agreement is signed, subject to all of the following conditions:
a) An Application for Life Insurance with the Company ("Application") or a
Request for Insurance Application with the Company ("Request") has been
completed as of the same date this Agreement has been signed;
b) The answers to the health questions below are "No"; and
c) The Company receives the first full modal premium for the mode selected on
the Application or the Request.
WHEN TEMPORARY INSURANCE COVERAGE TERMINATES -- 90 DAY MAXIMUM
Temporary insurance under this Agreement will terminate on the earliest of:
1. 30 days from the effective date of this Agreement if a required and
requested medical exam, lab test, application interview or medical report has
not been received by the Company;
2. 90 days from the effective date of this Agreement;
3. The date the policy, as applied for, takes effect;
4. The date the Company offers a policy with a risk assessment other than
Standard or a Preferred Class;
5. The date the Company mails a notice of termination of this Agreement to the
Proposed Policyowner at the address set forth in the Application or Request.
If the Company terminates coverage, the collected premium will be refunded
without interest.
WHO IS COVERED
This Agreement provides temporary insurance coverage only for the Primary
Insured. The Primary Insured is the "Proposed Insured" named in the Request, the
"Proposed Insured 1" named in the Application, or "Proposed Insured 1" and
"Proposed Insured 2" named in Applications for survivorship life insurance
coverage. THIS AGREEMENT DOES NOT PROVIDE INSURANCE COVERAGE FOR ANY OTHER
PROPOSED INSUREDS, INCLUDING BUT NOT LIMITED TO, OTHER PROPOSED INSUREDS UNDER
TERM INSURANCE RIDERS AND CHILD RIDERS.
AMOUNT OF LIFE INSURANCE COVERAGE -- $1,000,000 MAXIMUM
If death of a covered Primary Insured occurs while this Agreement is in effect,
the Company will pay a death benefit to the beneficiary designated in the
Application or Request.
The death benefit shall be the LESSER of:
a) The amount of death benefit indicated in the Application or Request, with
respect to the deceased Primary Insured; or
b) $1,000,000.
LIMITATIONS AND CONDITIONS OF COVERAGE
1. If benefits are payable under this Agreement, then no benefit relating to
that loss will be payable under the policy which is applied for.
2. Material misrepresentations or fraud in the answers to the Health Questions
set forth below or in the Application will invalidate this Agreement and the
Company's liability will be limited to a refund of the premium payment.
3. This Agreement does not cover any Primary Insured who is age 71 or over as
of the effective date of this Agreement.
OWNER'S COPY
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
103
EXHIBIT VI
CONDITIONAL RECEIPT OR TEMPORARY INSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
LIMITATIONS AND CONDITIONS OF COVERAGE (CONTINUED)
4. This Agreement provides temporary life insurance coverage in the event of
the death of Primary Insured. It does not provide any coverage for other
benefits which may be applied for, including but not limited to, waiver of
premium or accidental death benefits or coverage.
5. There is no coverage under this Agreement if a Primary Insured dies by
suicide. In that event, the Company's liability will be limited to a refund of
the premium payment.
6. There is no coverage under this Agreement if the check or draft submitted as
payment is not honored on the first presentation to the bank.
7. Only an officer of the Company can make, modify, or alter any of the
provisions of this Agreement.
HEALTH QUESTIONS
Has the Primary Insured:
1. Within the past 90 days, other than for pregnancy or childbirth, been
admitted to or treated at a hospital or other medical facility, been advised to
be admitted, or had surgery performed or recommended?
Yes No
2. Within the past 2 years had or been treated for heart disease, chest pain,
stroke, cancer, alcohol or drug use, immune system disorder or had such
treatment recommended by a physician or medical practitioner?
Yes No
NOTE: If either Question #1 or Question #2 above is answered "Yes" or left
blank, no coverage will take effect under this Temporary Insurance Agreement and
any premium received will be refunded.
DECLARATIONS
Each of the undersigned declares, understands and agrees that:
- The answers provided above are complete and true to the best of his/her
knowledge and belief.
- If the answers to the Health Questions contained in this Agreement or the
Application are incorrect, incomplete or untrue, the Company will have the
right to deny benefits under this Agreement.
X Date:
----------------------------------- ------------------------------
Proposed Primary Insured Signature
X Date:
----------------------------------- ------------------------------
Proposed Policy Owner Signature
(if other than the Proposed
Insured)
RECEIPT OF PAYMENT
A premium payment of $ has been submitted with the Application or
Request. Additional premium may be required upon Policy delivery.
All premium checks must be made payable to Hartford Life Insurance Company or
Hartford Life and Annuity Insurance Company. Do not make check(s) payable to the
Agent or leave the payee blank.
X Date:
----------------------------------- ------------------------------
Agent Signature
OWNER'S COPY
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
104
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
REPORT ACCOUNTING PERIOD DUE DATE
----------------------------------------------------------------------------------------------------------------
1. New Business* Monthly 30th day after month end
(New issues only -- first time policy
reported to the Reinsurer)
2. Renewal Business* Monthly 30th day after month end
(Policies with renewal dates within the
Accounting Period)
3. Changes & Terminations* Monthly 30th day after month end
(includes conversions, replacements
reinstatements, increases, decreases,
recaptures, lapses, claims, etc.)
4. Inforce List Monthly 30th day after month end
(Listing of each policy in force)
5. Statutory Reserves Quarterly 30th day after quarter end
6. Policy Exhibit Monthly 30th day after month end
* Policy record details for new business, renewal business, and changes and
terminations (Reports 1, 2, and 3 above) may be reported as separate reports
or combined into one report, provided, the required data elements continue
to be satisfied.
REPORTING SYSTEM:
The system used by the Ceding Company to administer its reinsurance is: TAI.
NOTE:
Certain policy transactions, such as increases, are coded in the policy
administration system as riders, although they do not correspond to filed rider
forms.
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
105
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
MINIMUM DATA REQUIREMENTS
INFORCE AND TRANSACTION FILE
Company Identifies the Ceding Company
Policy Policy number which is part of the policy key
Coverage/rider Coverage number which is part of the policy
key. This number is used to identify specific
policy coverage.
Cession ID This field contains the number assigned to this
cession by the Reinsurer
Transaction Sequence This field indicates the transaction record(s)
created during the month.
Line of Business This field indicates the line of business the
policy falls under.
Reinsurance Company Two character reinsurance company ID code that
identifies the Reinsurer.
Reporting Company Identifies the company used for reporting
purposes. Will be the same as the Reinsurance
Company.
Transaction Type Identifies the type of transaction being
reported on the Transaction extract.
Transaction Count This field is used on the Transaction extract
to identify the addition or termination of a
cession.
Reinsurance From Date This field contains the beginning date of the
period covered by this record. The premiums on
the Transaction record cover the period
beginning with the From Date through the To
Date.
Reinsurance To Date This field contains the end date of the period
covered by a record.
Date Reported On the Transaction extract, this is the month
the transaction was reported.
Mode Identifies the mode of reinsurance premium
payment.
Policy Duration The duration at issue is 01.
Reinsurance Duration Contains the reinsurance duration. It may
differ from the policy duration if the cession
is a continuation.
Cession Number Hartford does not currently use. Defaults to
spaces.
Policy Date This field contains the effective date of the
policy.
Reinsurance Date This field contains the effective date of the
reinsurance. For most cessions it is the same
as the policy date. For continuations, it
contains the effective date of the original
coverage.
Issue State This field contains a two-letter abbreviation
of the state or province of issue. Used to
determine unisex rates.
Resident State This field contains a two-letter abbreviation
of the state or province of issue. Used to
compute premium tax reimbursement if
applicable.
Joint Type Identifies Joint business type
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
106
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Joint Age Used for joint coverages using a joint equivalent age for rate
searches.
Auto/Fac Indicator Indicates whether the policy is ceded on an Automatic or
Facultative basis.
Death Benefit Option This field contains the option chosen by the insured for death
proceeds payment.
Participation code This field indicates whether the business is Non Participating (N) or
Participating (P).
Issue Type Identifies how a cession was issued. (New business or
Continuation)
Underwriting Method Identifies the type of underwriting used to issue the coverage.
Treaty Number This field contains the TAI system treaty number
Reinsurance Type This field is a one-character code that identifies the type of
reinsurance. (Y = YRT, C = Coinsurance & M = Modco.)
Plan This field contains the coverage plan code.
Product code This field contains the product type code.
Product code 1 For Joint Life policies, this field contains the product type code for
Insured 1.
Product code 2 For Joint Life policies, this field contains the product type code for
Insured 2. (If this is not a Joint Life policy, this field will be blank.)
Currency Code This field identifies the currency. (USD or CND if applicable)
Last Name -- 1 This field contains the insured's last name. For Joint Life policies,
this field contains the last name for Insured 1. (Maximum of 20 characters)
First Name -- 1 This field contains the insured's first name. For Joint Life policies,
this field contains the first name for Insured 1. (Maximum of 15
characters)
Middle Initial -- 1 This field contains the insured's middle initial. For Joint Life
policies, this field contains the middle initial for Insured 1. (1
character)
Client ID -- 1 This field contains the unique client ID for an insured used to
connect lives when calculating retention on a life. For Joint Life
policies, this field indicates the client ID for Insured 1. (Maximum of
20 characters)
Insured Status -- 1 This field indicates the insured's coverage status. For Joint Life
policies, this field indicates the insured's coverage status for
Insured 1.
DOB -- 1 This field contains the insured's date of birth. For Joint Life policies,
this field contains the date of birth for Insured 1.
Sex -- 1 This field is used to identify the sex of the insured. For Joint Life
policies, this field contains the sex of Insured 1.
Pricing Sex -- 1 This field contains the sex used to compute premiums and
allowances. For Joint Life policies, this field contains the pricing sex
of Insured 1.
Age -- 1 This field contains the insured's issue age. For Joint Life policies, this field
contains the issue age for Insured 1.
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
107
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Class -- 1 This field contains the company's rating of standard or preferred
and the smoker class. For Joint Life policies, this field contains the
class for Insured 1.
Mortality -- 1 This field contains the insured's mortality rating. For Joint Life
policies, this field contains the mortality rating for Insured 1.
Mortality Duration -- 1 This field contains the duration of the insured's mortality rating. For
Joint Life policies, this field contains the duration of the mortality
rating for Insured 1.
Temp Flat -- 1 This field contains the temporary flat extra per 1000. For Joint Life
policies, this field contains the temporary flat extra per 1000 for
Insured 1.
Temp Duration -- 1 This field contains the number of years that the temporary flat extra
rating is being charged. For Joint Life policies, this field contains
the number of years that the flat extra rating is being charged for
Insured 1.
Perm Flat -- 1 This field contains the permanent flat extra per 1000. For Joint Life
policies, this field contains the permanent flat extra per 1000 for
Insured 1.
Perm Duration - 1 This field contains the number of years that the permanent flat extra
rating is being charged. For Joint Life policies, this field contains
the number of years that the flat extra rating is being charged for
Insured 1.
Last Name -- 2 This field contains the insured's last name. For Joint Life policies,
this field contains the last name for Insured 2. (If this is not a Joint
Life policy, this field will be blank.) (Maximum of 20 characters)
First Name -- 2 This field contains the insured's first name. For Joint Life policies,
this field contains the first name for Insured 2. (If this is not a Joint
Life policy, this field will be blank.) (Maximum of 15 characters)
Middle Initial -- 2 This field contains the insured's middle initial. For Joint Life
policies, this field contains the middle initial for Insured 2. (If this is
not a Joint Life policy, this field will be blank.) (1 character)
Client ID -- 2 This field contains the unique client ID for an insured used to
connect lives when calculating retention on a life. For Joint Life
policies, this field indicates the client ID for Insured 2. (If this is not
a Joint Life policy, this field will be blank.) (Maximum of 20
characters)
Insured Status -- 2 This field indicates the insured's coverage status. For Joint Life
policies, this field indicates the insured's coverage status for
Insured 2. (If this is not a Joint Life policy, this field will be blank.)
DOB -- 2 This field contains the insured's date of birth. For Joint Life policies,
this field contains the date of birth for Insured 2. (If this is not a
Joint Life policy, this field will be blank.)
Sex -- 2 This field is used to identify the sex of the insured. For Joint Life
policies, this field contains the sex of Insured 2. (If this is not a Joint
Life policy, this field will be blank.)
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
108
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Pricing Sex -- 2 This field contains the sex used to compute premiums and allowances. For Joint Life
policies, this field contains the pricing sex of Insured 2. (If this is not a Joint
Life policy, this field will be blank.)
Age -- 2 This field contains the insured's issue age. For Joint Life policies,
this field contains the issue age for Insured 2. (If this is not a Joint
Life policy, this field will be blank.)
Class -- 2 This field contains the company's rating of standard or preferred and the smoker
class. For Joint Life policies, this field contains the
class for Insured 2. (If this is not a Joint Life policy, this field will be
blank.)
Mortality -- 2 This field contains the insured's mortality rating. For Joint Life
policies, this field contains the mortality rating for Insured 2. (If this
is not a Joint Life policy, this field will be blank.)
Mortality Duration -- 2 This field contains the duration of the insured's mortality rating. For
Joint Life policies, this field contains the duration of the mortality
rating for Insured 2. (If this is not a Joint Life policy, this field will be
blank.)
Temp Flat -- 2 This field contains the temporary flat extra per 1000. For Joint Life
policies, this field contains the temporary flat extra per 1000 for
Insured 2. (If this is not a Joint Life policy, this field will be blank.)
Temp Duration -- 2 This field contains the number of years that the temporary flat extra
rating is being charged. For Joint Life policies, this field contains
the number of years that the flat extra rating is being charged for
Insured 2. (If this is not a Joint Life policy, this field will be blank.)
Perm Flat -- 2 This field contains the permanent flat extra per 1000. For Joint Life
policies, this field contains the permanent flat extra per 1000 for
Insured 2. (If this is not a Joint Life policy, this field will be blank.)
Perm Duration -- 2 This field contains the number of years that the permanent flat extra
rating is being charged. For Joint Life policies, this field contains
the number of years that the flat extra rating is being charged for
Insured 2. (If this is not a Joint Life policy, this field will be blank.)
Policy Face Amount Indicates the face amount of the total policy.
Retained Amount This field contains the amount retained on this policy coverage, not
on the life.
Ceded Amount This field contains the policy amount ceded to a specific reinsurer.
Net Amount at Risk This field contains the reinsured net amount at risk (NAR) for a
specific reinsurer.
Benefit Mortality ADB or Waiver mortality.
Premium This field contains the reinsurance premium.
Allowance This field contains the reinsurance allowance.
Flat extra type This field indicates whether there is a temporary flat extra (T) or a
permanent flat extra (P) being charged.
Premium Tax If premium tax is reimbursed, this field contains the tax amount.
Cash Value If applicable, this field is used to recover coinsured cash values
from the Reinsurer.
Benefit If applicable, this field is used to recover benefits from the Reinsurer.
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
109
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Dividend If applicable, this field contains the reinsurer's share of the direct
dividend.
Policy Fee This field contains the reinsurance policy fee.
Continuation Original This field indicates the ceding company on the original policy. (Used
Company for conversions only.)
Continuation Original This field indicates the policy number for the original policy. (Used for
Policy
conversions only.)
Continuation Original This field indicates the coverage/rider for the original policy. (Used
Coverage/Rider for conversions only.)
Message An informational message may be manually added to a policy by the
Ceding Company.
Image switch Hartford does not currently use. Defaults to spaces.
Policy Fee Allowance This field contains the reinsurance policy fee allowance.
Location Code Hartford does not currently use. Defaults to spaces.
Treaty Reference Number Upon request, this field contains the Reinsurer's treaty number.
Claim Hartford does not currently use. Defaults to spaces.
Policy Status This field identifies the status of the cession.
Policy Master Smoker -- 1 Policy smoker class on direct policy. For Joint Life policies, this field
contains the policy master smoker class for Insured 1.
Policy Master Smoker -- 2 Policy smoker class on direct policy. For Joint Life policies, this field
contains the policy master smoker class for Insured 2. (If this is not a
Joint Life policy, this field will be blank.)
Policy Effective Date This field contains the issue date of the reinsurance.
Policy Application Date This field indicates the date the insured signed the application.
NAR Type This field indicates the method used in determining the Total Net
Amount at Risk (as defined in Schedule B).
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
110
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
POLICY EXHIBIT FILE*
Company Identifies the Ceding Company.
Policy Policy number which is part of the policy key.
Coverage/rider Coverage number which is part of the policy key. This
number is used to identify a specific policy
coverage.
Cession ID This field contains the number assigned to this
cession by the Reinsurer.
Line of Business This field indicates the line of business the policy
falls under.
Report Date This is the month the transaction was reported.
Reinsurance Company Two character reinsurance company ID code that
identifies the Reinsurer.
Reporting Company Identifies the company used for reporting purposes.
Will be the same as the Reinsurance Company.
Treaty Number This field contains the TAI system treaty number.
Transaction Type Identifies the type of transaction being reported on
the Transaction extract.
Policy Count Each New Business, Continuation & Reinstatement will
be assigned a count of 1, Terminations will be
assigned -1 and Renewals/NAR changes will be assigned
0.
Base Ceded Amount This field contains the policy base amount ceded.
ADB ceded Amount This field contains the policy ADB amount ceded.
Waiver Ceded Amount This field contains the policy waiver amount ceded.
Net Amount at Risk The reinsured net amount at risk (NAR).
Plan This field contains the coverage plan code.
Auto/Fac Indicator Indicates whether the policy is ceded on an Automatic
or Facultative basis.
Reinsurance Type This field is a one-character code that identifies
the type of reinsurance. (Y=YRT, C=Coinsurance &
M=Modco.)
Currency Code This field identifies the currency. (USD or CND if
applicable)
------------
* The Policy Exhibit will include a summary of reinsurance movement for a
given period categorized by transactions type. This summary provides the
Cession Count, Ceded Amount and Net Amount at Risk at the beginning of the
reporting period, a summary of the transactions occurring during the report
period as well as what is in force as of the ending of the report period.
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
111
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
RESERVE FILE
Company Identifies the Ceding Company
Policy Policy number which is part of the policy key
Coverage/rider Coverage number which is part of the policy key. This
number is used to identify a specific policy
coverage.
Cession ID This field contains the number assigned to this
cession by the Reinsurer
Benefit Type This field is the reserve type. 1 = Life, 2 = ADB, 3
= Waiver, 4 = Xxxx Xxxxxx, 0 = Substandard
Calc Method Hartford's TAI Valuation Method 1 = Xxxxxxx Reserve +
1/2 cx, E = Coinsurance Reserve, H = Half Premium, L
= Factor FLX1, X = 1/2 cx
Reinsurance Company Two character reinsurance company ID code that
identifies the Reinsurer.
Reporting Company Identifies the company used for reporting purposes.
Will be the same as the Reinsurance Company.
Line of Business This field indicates the line of business the policy
falls under. (L = Life)
Treaty Number This field contains the TAI system treaty number
Plan This field contains the coverage plan code.
Auto/Fac Indicator Indicates whether the policy is ceded on an Automatic
or Facultative basis.
Product code This field contains the product type code.
Joint Type Identifies Joint business Type
Joint Method Switch Identifies XXX Xxxxxxx method calculation
Mode Identifies the mode of reinsurance premium payment.
Cession Status This field identifies the status of the cession.
Reinsurance Type This field is a one-character code that identifies
the type of reinsurance.
Duration Contains the reinsurance duration. It may differ from
the policy duration if the cession is a continuation.
Participation code This field indicates whether the business is Non
participating (N) or Participating (P).
Issue Date This field contains the effective date of the policy.
Reinsurance To Date This field contains the end date of the period
covered by a record.
Policy Face Amount Indicates the face amount of the total policy.
Ceded Amount This field contains the policy amount ceded to a
specific reinsurer
Net Amount at Risk This field contains the reinsured net amount at risk
(NAR) for as pecific reinsurer.
Premium This field contains the reinsurance premium.
Reserve Percent Value appears on Coinsurance business only
Cession Count Cession count only appears under Life (Base), not
benefits.
Age Basis Nearest/Closest (C), Last (L), Next (N)
Insured Status -- 1 This field indicates the insured's coverage status.
For Joint Life policies, this field indicates the
insured's coverage status for Insured 1.
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
112
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Age -- 1 This field contains the insured's issue age. For Joint
Life policies, this field contains the issue age for
Insured 1.
Class -- 1 This field contains the company's rating of standard or
preferred and the smoker class. For Joint Life policies,
this field contains the class for Insured 1.
Sex -- 1 This field is used to identify the sex of the insured. For
Joint Life policies, this field contains the sex of
Insured 1.
Mortality -- 1 This field contains the insured's mortality rating. For
Joint Life policies, this field contains the mortality
rating for Insured 1.
Insured Status -- 2 This field indicates the insured's coverage status. For
Joint Life policies, this field indicates the insured's
coverage status for Insured 2. (If this is not a Joint
Life policy, this field will be blank.)
Age -- 2 This field contains the insured's issue age. For Joint
Life policies, this field contains the issue age for
Insured 2. (If this is not a Joint Life policy, this field
will be blank.)
Class -- 2 This field contains the company's rating of standard or
preferred and the smoker class. For Joint Life policies,
this field contains the class for Insured 2. (If this is
not a Joint Life policy, this field will be blank.)
Sex -- 2 This field is used to identify the sex of the insured. For
Joint Life policies, this field contains the sex of
Insured 2. (If this is not a Joint Life policy, this field
will be blank.)
Mortality -- 2 This field contains the insured's mortality rating. For
Joint Life policies, this field contains the mortality
rating for Insured 2. (If this is not a Joint Life policy,
this field will be blank.)
Reserve Statutory or Tax Reserve for each coverage.
Reserve Interest This field identifies the Interest Rate used when
Rate calculating reserves.
Reserve Factor Applicable Mortality Basis YRT Factor
Factor Pointer TAI specific field to identify applicable mortality table
used when calculating reserves.
Attained Age TAI specific field. Default is 1
Setback TAI specific field. Default is zero
Class Switch TAI specific field. Valuation Class (D = Distinct)
Curtate Switch This field indicates whether reserves are on a curtate or
continuous basis.
Caption Hartford's TAI Valuation Method
Error Code Informational field used by Hartford -- Usually Blank
Reserve Class 1 This field contains insured's smoker class. For Joint Life
policies, this field contains the class for Insured 1.
Reserve Class 2 This field contains insured's smoker class. For Joint Life
policies, this field contains the class for Insured 2. (If
this is not a Joint Life policy, this field will be
blank.)
Currency Code This field identifies the currency. (USD or CND if
applicable)
Valuation Interest TAI assigned field that is used to read applicable
Pointer interest rates when calculating 1/2cx reserves.
NAR Type This field indicates the method used in determining the
Total Net Amount at Risk (as defined in Schedule B).
Allocated Retention Pool (Excess Risks) -- Effective October 1, 2008
Between HLAIC and Canada Life
113
AMENDMENT 1
EFFECTIVE OCTOBER 1, 2008
TO THE
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM REINSURANCE
AGREEMENT FOR EXCESS RISKS
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
THE CANADA LIFE ASSURANCE COMPANY ("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer (collectively, the "Parties")
agree that the Agreement was implemented using YRT Reinsurance Rate Factors
("Factors") which proved to be incorrect; and
WHEREAS, the Parties have agreed to incorporate revised Factors as shown in the
attached Exhibit IV as of October 1, 2008, with the revised Factors being
implemented as follows:
(a) For billing transactions appearing in the November 2010 reinsurance billing
statement and thereafter, the Ceding Company will apply the revised Factors; and
(b) For billing transactions reported to the Reinsurer prior to the November
2010 reinsurance billing statement, the Ceding Company shall remit to the
Reinsurer a one-time payment in the amount of [Redacted], no later than January
31, 2011, to correct the discrepancy which resulted from the Ceding Company's
application of the initial Factors; and
WHEREAS, the Parties acknowledge that the [Redacted] payment represents an
aggregate correction for the following agreements, all effective October 1,
2008:
(a) Automatic Monthly Renewable Term Reinsurance for Non-Excess Risks between
Hartford Life and Annuity Insurance Company and The Canada Life Assurance
Company;
(b) Automatic Monthly Renewable Term Reinsurance for Non-Excess Risks between
Hartford Life Insurance Company and The Canada Life Assurance Company;
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 1 -- Effective 10/01/2008
1
(c) Automatic and Facultative Monthly Renewable Term Reinsurance Agreement for
Excess Risks between Hartford Life and Annuity Insurance Company and The Canada
Life Assurance Company; and
(d) Automatic and Facultative Monthly Renewable Term Reinsurance Agreement for
Excess Risks between Hartford Life Insurance Company and The Canada Life
Assurance Company; and
WHEREAS, the Parties agree that this payment shall represent a full and final
settlement regarding this matter; and
WHEREAS, the Parties acknowledge that the Ceding Company will not alter its
administrative systems to reflect this recalculation of premium prior to the
November 2010 reinsurance billing and that this may result in a discrepancy if
an audit of the business reinsured is conducted.
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
1. The above recitals are true and accurate and are incorporated herein.
2. Exhibit IV is deleted in its entirety and replaced with the attached Exhibit
IV.
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
In witness of the foregoing, the Parties have, by their respective officers,
executed this Amendment in duplicate, each of which shall be deemed an original
but both of which together shall constitute one and the same instrument, on the
dates indicated below, with an effective date of October 1, 2008.
THE CANADA LIFE ASSURANCE COMPANY
By: /s/ Xxxxxx Xxxxxx By: /s/ Xxxx-Xxxxxxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxx Xxxxxx Name: Xxxx-Xxxxxxxx Xxxxxx
Title: Senior Vice President, Life Re Title: Senior Vice President, Life Re
Date: December 23/10 Date: December 28, 2010
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxxx Xxxxxxxxx Attest: /s/ Xxxxxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxxx Xxxxxxxxx, FSA, MAAA Name: Xxxxxxx Xxxxxx, FSA, MAAA
Title: Assistant Vice President and Title: Senior Vice President
Actuary Individual Life Individual Life Product
Product Management Management
Date: 10/22/2010 Date: 12/22/2010
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 1 -- Effective 10/01/2008
2
EXHIBIT IV
YRT REINSURANCE RATE FACTORS
CORRECTED EFFECTIVE OCTOBER 1, 2008
YRT REINSURANCE RATE FACTORS (SEE EXHIBIT I FOR USAGE)
For Automatic Reinsurance under this Agreement, Table 1 applies for all coverage
years on Reinsured Net Amount at Risk (ReinsNAR) for portions of face amount not
exceeding
For Facultative Reinsurance under this Agreement, Table 1 applies for all
coverage years on Reinsured Net Amount at Risk (ReinsNAR) for portions of
reinsured face amount not exceeding [Redacted] per life.
For Automatic Reinsurance under this Agreement, Table 2 applies for coverage
years specified on Reinsured Net Amount at Risk (ReinsNAR) for portions of face
amount exceeding
For Facultative Reinsurance under this Agreement, Table 2 applies for coverage
years specified on Reinsured Net Amount at Risk (ReinsNAR) for portions of
reinsured face amount exceeding [Redacted] per life
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 1 -- Effective 10/01/2008
3
EXHIBIT IV
YRT REINSURANCE RATE FACTORS
EFFECTIVE OCTOBER 1, 2008
For Single Life Plans, use applicable factor for issue age, gender, and risk
class from tables above.
For Last Survivor Plans, use (applicable factor for issue age, gender, and risk
class from tables above) x (applicable Last Survivor Factor LSF for gender and
risk class from tables above).
For Life Solutions II UL plans, YRT Reinsurance Rate Factors will be determined
as follows:
(1) For "Preferred" policies, use the SNN rate class; and
(2) For "Standard" policies, use the SN rate class.
Note: If the YRT Reinsurance Rate Factors or the Annual Rates per $1,000 shown
in Exhibit III of this Agreement are changed, the Ceding Company and the
Reinsurer will determine whether the Annual Rates per $1,000 or YRT Reinsurance
Rate Factors for the Non-Excess Risks agreement need to be changed.
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 1 -- Effective 10/01/2008
4
AMENDMENT 2
EFFECTIVE OCTOBER 1, 2008
TO THE
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM
REINSURANCE AGREEMENT FOR EXCESS RISKS
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
THE CANADA LIFE ASSURANCE COMPANY ("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to clarify the administrative
implications of the Reinsurer's liability for riders or policy features that
accelerate the death benefit; and
WHEREAS, the Ceding Company and the Reinsurer wish to reaffirm the basis for the
minimum amount for a facultative reinsurance application; and
WHEREAS, the Ceding Company and the Reinsurer wish to replace Exhibit VII to
reflect updated definitions.
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer agree as follows:
1. The above recitals are true and accurate and are incorporated herein.
2. Section IV.E is hereby deleted in its entirety and replaced with the
following Section IV.E:
E. The Reinsurer's liability for reinsurance on each risk will terminate when
the Ceding Company's liability terminates, unless it terminates earlier as
specified otherwise in this Agreement. Notwithstanding the foregoing, if the
Ceding Company's liability on a risk terminates as a result of acceleration in
accordance with a Rider, the Reinsurer's liability on such risk will terminate
following the death of the insured and the Reinsurer's payment to the Ceding
Company of its share of the death benefit on such risk.
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 2 -- Effective 10/01/2008
1
3. Section X.D. is hereby deleted in its entirety and replaced with the
following Section X.D:
D. Policy Terminations and Lapses
If a policy reinsured under this Agreement terminates, the reinsurance for the
risk will terminate as of the effective date of policy termination. For a policy
terminated due to the expiry of any grace period for an unpaid amount, the
effective date of termination for such policy will be the date such unpaid
amount was first due.
Notwithstanding the foregoing, if a policy is deemed to have terminated as a
result of full acceleration of the death benefit, the corresponding reinsurance
on the policy will continue as specified in Section IV.E.
If a policy reinsured under this Agreement lapses to extended term insurance
under the terms of that policy, the corresponding reinsurance on the reinsured
policy will continue on the same basis as the original reinsurance until the
expiry of the extended term period.
If a policy reinsured under this Agreement lapses to reduced paid-up insurance
under the terms of that policy, the amount of the corresponding reinsurance on
the reinsured policy will be reduced according to the terms of Section B.2.
If the Ceding Company allows a policy reinsured under this Agreement to remain
in force under its automatic premium loan provisions, the corresponding
reinsurance on the reinsured policy will continue unchanged and in force as long
as such provisions remain in effect, except as otherwise provided in this
Agreement.
4. Schedule B is hereby deleted in its entirety and replaced with the attached,
revised Schedule B.
5. Exhibit VII is hereby deleted in its entirety and replaced with the
attached, revised Exhibit VII.
6. Except as herein amended, all other terms and conditions of the Agreement
shall remain in full force and effect and unchanged.
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 2 -- Effective 10/01/2008
2
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below.
THE CANADA LIFE ASSURANCE COMPANY
By: /s/ Xxxxxx Xxxxxx By: /s/ Xxxx-Xxxxxxxx Xxxxxx
--------------------------- ---------------------------
Name: Xxxxxx Xxxxxx, FSA, FCIA, Name: Xxxx-Xxxxxxxx Xxxxxx, FSA,
MAAA FCIA
Title: Senior Vice-President Life Title: Senior Vice President Life
Reinsurance Reinsurance
Date: October 27, 2011 Date: October 28, 2011
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxx Xxxxxxx Attest: /s/ Xxxxxxx Xxxxxx
--------------------------- ---------------------------
Name: Xxxx Xxxxxxx, FSA, MAAA Name: Xxxxxxx Xxxxxx, FSA, MAAA
Title: Assistant Vice President Title: Senior Vice President
and Actuary Individual Life Individual Life Product
Product Management Management
Date: Nov 29, 2011 Date: 12/2/11
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 2 -- Effective 10/01/2008
3
SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
AUTOMATIC REINSURANCE: The Ceding Company shall retain its available retention
on each risk, defined below as the Retained Net Amount at Risk, subject to the
applicable Ceding Company's Treaty Retention Limit shown in Exhibit II.
The Reinsurer will automatically reinsure a portion of the remainder of the
risk, called the Reinsured Net Amount at Risk, as defined below in this Schedule
B, not to exceed the Reinsurer's Maximum Automatic Participation Limit, as set
forth in Exhibit II.
FACULTATIVE REINSURANCE: he Reinsurer will reinsure X% (as determined at issue)
of the Total Net Amount at Risk for the risk.
TOTAL ALLOCATION LIMIT (TAL): As shown in Exhibit II.
CEDING COMPANY'S TREATY RETENTION LIMIT (CCTRL): As shown in Exhibit II.
CEDING COMPANY'S ALLOCATED RETENTION (CCAR): As shown in Exhibit II.
CURRENT RETENTION (CURRRET) = Current amount of life insurance retained by the
Ceding Company and its affiliated companies on the life for in-force life
insurance coverage. (For Last Survivor risks, see the Last Survivor Limits and
Retention Worksheet in Exhibit II.)
REINSURER'S ALLOCATED RETENTION (REINSARET): As shown in Exhibit II.
REINSURER'S ATTACHMENT POINT (REINSAPT): As shown in Exhibit II.
NAR TYPE for the Plan of Insurance to be reinsured under this Agreement, as
shown in Schedule A.
STEP 1 -- DETERMINE TOTAL NET AMOUNT AT RISK FOR THE COVERAGE
TOTAL NET AMOUNT AT RISK (TOTNAR)* =
For NAR TYPE A, Death Benefit minus the Account Value.
For NAR TYPE B, Death Benefit minus the Working Reserve, where
Working Reserve = (i) x (ii) / (iii), and
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 2 -- Effective 10/01/2008
4
SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
For NAR TYPE C, Death Benefit.
*In cases where the current Working Reserve is not available, the Ceding Company
may estimate such amount using either the most recent Working Reserve or the
Account Value.
STEP 2 -- DETERMINE NET AMOUNT AT RISK FOR EACH "LAYER" OF COVERAGE
STEP 3 -- DETERMINE THE NAR FOR THE CEDING COMPANY AND THEN FOR THE REINSURER
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 2 -- Effective 10/01/2008
5
SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
MINIMUM AUTOMATIC REINSURANCE CESSION: [Redacted]
MINIMUM FACULTATIVE REINSURANCE APPLICATION: [Redacted]
LEAD REINSURER: Swiss Re Life & Health America Inc.
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 2 -- Effective 10/01/2008
6
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
REPORT ACCOUNTING PERIOD DUE DATE
----------------------------------------------------------------------------------------------------------
1. New Business* (New issues only -- first time policy Monthly 30th day after month end
reported to the Reinsurer)
2. Renewal Business* (Policies with renewal dates Monthly 30th day after month end
within the Accounting Period)
3. Changes & Terminations* (includes conversions, Monthly 30th day after month end
replacements reinstatements, increases, decreases,
recaptures, lapses, claims, etc.)
4. Inforce List (Listing of each policy in force) Monthly 30th day after month end
5. Statutory Reserves Quarterly 30th day after quarter
end
6. Policy Exhibit Monthly 30th day after month end
------------
* Policy record details for new business, renewal business, and changes and
terminations (Reports 1, 2, and 3 above) may be reported as separate reports
or combined into one report, provided the required data elements continue to
be satisfied.
REPORTING SYSTEM:
The system used by the Ceding Company to administer its reinsurance is: TAI.
NOTE:
Certain policy transactions, such as increases, are coded in the policy
administration system as riders, although they do not correspond to filed rider
forms.
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 2 -- Effective 10/01/2008
7
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
MINIMUM DATA REQUIREMENTS
INFORCE AND TRANSACTION FILE
Company Identifies the Ceding Company
Policy Policy number which is part of the policy key
Coverage/rider Coverage number which is part of the policy key.
This number is used to identify specific policy
coverage.
Cession ID This field contains the number assigned to this
cession by the Reinsurer
Transaction Sequence This field indicates the transaction record(s)
created during the month.
Line of Business This field indicates the line of business the
policy falls under.
Reinsurance Company Two character reinsurance company ID code that
identifies the Reinsurer.
Reporting Company Identifies the company used for reporting
purposes. Will be the same as the Reinsurance
Company.
Transaction Type Identifies the type of transaction being reported
on the Transaction extract.
Transaction Count This field is used on the Transaction extract to
identify the addition or termination of a cession.
Reinsurance From Date This field contains the beginning date of the
period covered by this record. The premiums on the
Transaction record cover the period beginning with
the From Date through the To Date.
Reinsurance To Date This field contains the end date of the period
covered by a record.
Date Reported On the Transaction extract, this is the month the
transaction was reported.
Mode Identifies the mode of reinsurance premium
payment.
Policy Duration The duration at issue is 01.
Reinsurance Duration Contains the reinsurance duration. It may differ
from the policy duration if the cession is a
continuation.
Cession Number Hartford does not currently use. Defaults to
spaces.
Policy Date This field contains the effective date of the
policy.
Reinsurance Date This field contains the effective date of the
reinsurance. For most cessions it is the same as
the Policy Date. For continuations, it contains
the effective date of the original coverage.
Issue State This field contains a two-letter abbreviation of
the state or province of issue. Used to determine
unisex rates.
Resident State This field contains a two-letter abbreviation of
the state or province of issue. Used to compute
premium tax reimbursement if applicable.
Joint Type Identifies Joint business type
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 2 -- Effective 10/01/2008
8
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Joint Age Used for joint coverages using a joint equivalent age for
rate searches.
Auto/Fac Indicator Indicates whether the policy is ceded on an Automatic or
Facultative basis.
Death Benefit This field contains the option chosen by the insured for
Option death proceeds payment.
Participation code This field indicates whether the business is Non
Participating (N) or Participating (P).
Issue Type Identifies how a cession was issued. (New business or
Continuation)
Underwriting Method Identifies the type of underwriting used to issue the
coverage.
Treaty Number This field contains the TAI system treaty number
Reinsurance Type This field is a one-character code that identifies the type
of reinsurance. (Y=YRT, C=Coinsurance & M=Modco.)
Plan This field contains the coverage plan code.
Product code This field contains the product type code.
Product code 1 For Joint Life policies, this field contains the product
type code for Insured 1.
Product code 2 For Joint Life policies, this field contains the product
type code for Insured 2. (If this is not a Joint Life
policy, this field will be blank.)
Currency Code This field identifies the currency. (USD or CND if
applicable)
Last Name -- 1 This field contains the insured's last name. For Joint Life
policies, this field contains the last name for Insured 1.
(Maximum of 20 characters)
First Name -- 1 This field contains the insured's first name. For Joint
Life policies, this field contains the first name for
Insured 1. (Maximum of 15 characters)
Middle Initial -- 1 This field contains the insured's middle initial. For Joint
Life policies, this field contains the middle initial for
Insured 1. (1 character)
Client ID -- 1 This field contains the unique client ID for an insured
used to connect lives when calculating retention on a life.
For Joint Life policies, this field indicates the client ID
for Insured 1. (Maximum of 20 characters)
Insured Status -- 1 This field indicates the insured's coverage status. For
Joint Life policies, this field indicates the insured's
coverage status for Insured 1.
DOB -- 1 This field contains the insured's date of birth. For Joint
Life policies, this field contains the date of birth for
Insured 1.
Sex -- 1 This field is used to identify the sex of the insured. For
Joint Life policies, this field contains the sex of Insured
1.
Pricing Sex -- 1 This field contains the sex used to compute premiums and
allowances. For Joint Life policies, this field contains
the pricing sex of Insured 1.
Age -- 1 This field contains the insured's issue age. For Joint Life
policies, this field contains the issue age for Insured 1.
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 2 -- Effective 10/01/2008
9
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Class -- 1 This field contains the company's rating of standard or
preferred and the smoker class. For Joint Life policies,
this field contains the class for Insured 1.
Mortality -- 1 This field contains the insured's mortality rating. For
Joint Life policies, this field contains the mortality
rating for Insured 1.
Mortality Duration This field contains the duration of the insured's mortality
-- 1 rating. For Joint Life policies, this field contains the
duration of the mortality rating for Insured 1.
Temp Flat -- 1 This field contains the temporary flat extra per 1000. For
Joint Life policies, this field contains the temporary flat
extra per 1000 for Insured 1.
Temp Duration -- 1 This field contains the number of years that the temporary
flat extra rating is being charged. For Joint Life
policies, this field contains the number of years that the
flat extra rating is being charged for Insured 1.
Perm Flat -- 1 This field contains the permanent flat extra per 1000. For
Joint Life policies, this field contains the permanent flat
extra per 1000 for Insured 1.
Perm Duration -- 1 This field contains the number of years that the permanent
flat extra rating is being charged. For Joint Life
policies, this field contains the number of years that the
flat extra rating is being charged for Insured 1.
Last Name -- 2 This field contains the insured's last name. For Joint Life
policies, this field contains the last name for Insured 2.
(If this is not a Joint Life policy, this field will be
blank.) (Maximum of 20 characters)
First Name -- 2 This field contains the insured's first name. For Joint
Life policies, this field contains the first name for
Insured 2. (If this is not a Joint Life policy, this field
will be blank.) (Maximum of 15 characters)
Middle Initial -- 2 This field contains the insured's middle initial. For Joint
Life policies, this field contains the middle initial for
Insured 2. (If this is not a Joint Life policy, this field
will be blank.) (1 character)
Client ID -- 2 This field contains the unique client ID for an insured
used to connect lives when calculating retention on a life.
For Joint Life policies, this field indicates the client ID
for Insured 2. (If this is not a Joint Life policy, this
field will be blank.) (Maximum of 20 characters)
Insured Status -- 2 This field indicates the insured's coverage status. For
Joint Life policies, this field indicates the insured's
coverage status for Insured 2. (If this is not a Joint Life
policy, this field will be blank.)
DOB -- 2 This field contains the insured's date of birth. For Joint
Life policies, this field contains the date of birth for
Insured 2. (If this is not a Joint Life policy, this field
will be blank.)
Sex -- 2 This field is used to identify the sex of the insured. For
Joint Life policies, this field contains the sex of Insured
2. (If this is not a Joint Life policy, this field will be
blank.)
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 2 -- Effective 10/01/2008
10
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Pricing Sex -- 2 This field contains the sex used to compute premiums and
allowances. For Joint Life policies, this field contains
the pricing sex of Insured 2. (If this is not a Joint Life
policy, this field will be blank.)
Age -- 2 This field contains the insured's issue age. For Joint Life
policies, this field contains the issue age for Insured 2.
(If this is not a Joint Life policy, this field will be
blank.)
Class -- 2 This field contains the company's rating of standard or
preferred and the smoker class. For Joint Life policies,
this field contains the class for Insured 2. (If this is
not a Joint Life policy, this field will be blank.)
Mortality -- 2 This field contains the insured's mortality rating. For
Joint Life policies, this field contains the mortality
rating for Insured 2. (If this is not a Joint Life policy,
this field will be blank.)
Mortality Duration This field contains the duration of the insured's mortality
-- 2 rating. For Joint Life policies, this field contains the
duration of the mortality rating for Insured 2. (If this is
not a Joint Life policy, this field will be blank.)
Temp Flat -- 2 This field contains the temporary flat extra per 1000. For
Joint Life policies, this field contains the temporary flat
extra per 1000 for Insured 2. (If this is not a Joint Life
policy, this field will be blank)
Temp Duration -- 2 This field contains the number of years that the temporary
flat extra rating is being charged. For Joint Life
policies, this field contains the number of years that the
flat extra rating is being charged for Insured 2. (If this
is not a Joint Life policy, this field will be blank.)
Perm Flat -- 2 This field contains the permanent flat extra per 1000. For
Joint Life policies, this field contains the permanent fiat
extra per 1000 for Insured 2. (If this is not a Joint Life
policy, this field will be blank.)
Perm Duration -- 2 This field contains the number of years that the permanent
flat extra rating is being charged. For Joint Life
policies, this field contains the number of years that the
flat extra rating is being charged for Insured 2. (If this
is not a Joint Life policy, this field will be blank.)
Policy Face Amount Indicates the face amount of the total policy.
Retained Amount This field contains the amount retained on this policy
coverage, not on the life.
Ceded Amount This field contains the policy amount ceded to a specific
reinsurer.
Net Amount at Risk This field contains the reinsured net amount at risk (NAR)
for a specific reinsurer.
Benefit Mortality ADB or Waiver mortality.
Premium This field contains the reinsurance premium.
Allowance This field contains the reinsurance allowance.
Flat extra type This field indicates whether there is a temporary flat
extra (T) or a permanent flat extra (P) being charged.
Premium Tax If premium tax is reimbursed, this field contains the tax
amount.
Cash Value If applicable, this field is used to recover coinsured cash
values from the Reinsurer.
Benefit If applicable, this field is used to recover benefits from
the Reinsurer.
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 2 -- Effective 10/01/2008
11
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Dividend If applicable, this field contains the reinsurer's share of
the direct dividend.
Policy Fee This field contains the reinsurance policy fee.
Continuation This field indicates the ceding company on the original
Original Company policy. (Used for conversions only.)
Continuation This field indicates the policy number for the original
Original Policy policy. (Used for conversions only.)
Continuation This field indicates the coverage/rider for the original
Original policy. (Used for conversions only.)
Coverage/Rider
Message An informational message may be manually added to a policy
by the Ceding Company.
Image switch Hartford does not currently use. Defaults to spaces.
Policy Fee This field contains the reinsurance policy fee allowance.
Allowance
Location Code Hartford does not currently use. Defaults to spaces.
Treaty Reference Upon request, this field contains the Reinsurer's treaty
Number number.
Claim Hartford does not currently use. Defaults to spaces.
Policy Status This field identifies the status of the cession.
Policy Master Policy smoker class on direct policy. For Joint Life
Smoker -- 1 policies, this field contains the policy master smoker
class for Insured 1.
Policy Master Policy smoker class on direct policy. For Joint Life
Smoker -- 2 policies, this field contains the policy master smoker
class for Insured 2. (If this is not a Joint Life policy,
this field will be blank.)
Policy Effective This field contains the issue date of the policy.
Date
Policy Application This field indicates the date the insured signed the
Date application.
NAR Type This field indicates the method used in determining the
Total Net Amount at Risk (as defined in Schedule B).
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 2 -- Effective 10/01/2008
12
EXHIBIT VII
REINSURANCE REPORTS
Effective October 1, 2008
POLICY EXHIBIT FILE*
Company Identifies the Ceding Company.
Policy Policy number which is part of the policy key.
Coverage/rider Coverage number which is part of the policy key.
This number is used to identify a specific policy
coverage.
Cession ID This field contains the number assigned to this
cession by the Reinsurer.
Line of Business This field indicates the line of business the
policy falls under.
Report Date This is the month the transaction was reported.
Reinsurance Company Two character reinsurance company ID code that
identifies the Reinsurer.
Reporting Company Identifies the company used for reporting
purposes. Will be the same as the Reinsurance
Company.
Treaty Number This field contains the TAI system treaty number.
Transaction Type Identifies the type of transaction being reported
on the Transaction extract.
Policy Count Each New Business, Continuation & Reinstatement
will be assigned a count of 1, Terminations will
be assigned -1 and Renewals/NAR changes will be
assigned 0.
Base Ceded Amount This field contains the policy base amount ceded.
ADB ceded Amount This field contains the policy ADB amount ceded.
Waiver Ceded Amount This field contains the policy waiver amount
ceded.
Net Amount at Risk The reinsured net amount at risk (NAR).
Plan This field contains the coverage plan code.
Auto/Fac Indicator Indicates whether the policy is ceded on an
Automatic or Facultative basis.
Reinsurance Type This field is a one-character code that identifies
the type of reinsurance. (Y=YRT, C=Coinsurance &
M=Modco.)
Currency Code This field identifies the currency. (USD or CND if
applicable)
------------
* The Policy Exhibit will include a summary of reinsurance movement for a
given period categorized by transactions type. This summary provides the
Cession Count, Ceded Amount and Net Amount at Risk at the beginning of the
reporting period, a summary of the transactions occurring during the report
period as well as what is in force as of the ending of the report period.
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 2 -- Effective 10/01/2008
13
EXHIBIT VII
REINSURANCE REPORTS
Effective October 1, 2008
RESERVE FILE
Company Identifies the Ceding Company
Policy Policy number which is part of the policy key
Coverage/rider Coverage number which is part of the policy key.
This number is used to identify a specific policy
coverage.
Cession ID This field contains the number assigned to this
cession by the Reinsurer
Benefit Type This field is the reserve type. 1 = Life, 2=ADB,
3=Waiver, 4=Flat Extras, 5=Substandard
Calc Method Hartford's TAI Valuation Method 1=Xxxxxxx Reserve
+ 1/2 cx, E=Coinsurance Reserve, H=Half Premium,
L=Factor FLX1, X=1/2 cx
Reinsurance Company Two character reinsurance company ID code that
identifies the Reinsurer.
Reporting Company Identifies the company used for reporting
purposes. Will be the same as the Reinsurance
Company.
Line of Business This field indicates the line of business the
policy falls under. (L=Life)
Treaty Number This field contains the TAI system treaty number
Plan This field contains the coverage plan code.
Auto/Fac Indicator Indicates whether the policy is ceded on an
Automatic or Facultative basis.
Product code This field contains the product type code.
Joint Type Identifies Joint business Type
Joint Method Switch Identifies XXX Xxxxxxx method calculation
Mode Identifies the mode of reinsurance premium
payment.
Cession Status This field identifies the status of the cession.
Reinsurance Type This field is a one-character code that identifies
the type of reinsurance.
Duration Contains the reinsurance duration. It may differ
from the policy duration if the cession is a
continuation.
Participation code This field indicates whether the business is Non
participating (N) or Participating (P).
Issue Date This field contains the effective date of the
policy.
Reinsurance To Date This field contains the end date of the period
covered by a record.
Policy Face Amount Indicates the face amount of the total policy.
Ceded Amount This field contains the policy amount ceded to a
specific reinsurer
Net Amount at Risk This field contains the reinsured net amount at
risk (NAR) for a specific reinsurer.
Premium This field contains the reinsurance premium.
Reserve Percent Value appears on Coinsurance business only
Cession Count Cession count only appears under Life (Base), not
benefits.
Age Basis Nearest/Closest (C), Last (L), Next (N)
Insured Status -- 1 This field indicates the insured's coverage
status. For Joint Life policies, this field
indicates the insured's coverage status for
Insured 1.
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 2 -- Effective 10/01/2008
14
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Age -- 1 This field contains the insured's issue age. For
Joint Life policies, this field contains the issue
age for Insured 1.
Class -- 1 This field contains the company's rating of
standard or preferred and the smoker class. For
Joint Life policies, this field contains the class
for Insured 1.
Sex -- 1 This field is used to identify the sex of the
insured. For Joint Life policies, this field
contains the sex of Insured 1.
Mortality -- 1 This field contains the insured's mortality
rating. For Joint Life policies, this field
contains the mortality rating for Insured 1.
Insured Status -- 2 This field indicates the insured's coverage
status. For Joint Life policies, this field
indicates the insured's coverage status for
Insured 2. (If this is not a Joint Life policy,
this field will be blank.)
Age -- 2 This field contains the insured's issue age. For
Joint Life policies, this field contains the issue
age for Insured 2. (If this is not a Joint Life
policy, this field will be blank.)
Class -- 2 This field contains the company's rating of
standard or preferred and the smoker class. For
Joint Life policies, this field contains the class
for Insured 2. (If this is not a Joint Life
policy, this field will be blank.)
Sex -- 2 This field is used to identify the sex of the
insured. For Joint Life policies, this field
contains the sex of Insured 2. (If this is not a
Joint Life policy, this field will be blank.)
Morality -- 2 This field contains the insured's mortality
rating. For Joint Life policies, this field
contains the mortality rating for Insured 2. (If
this is not a Joint Life policy, this field will
be blank.)
Reserve Statutory or Tax Reserve for each coverage.
Reserve Interest Rate This field identifies the Interest Rate used when
calculating reserves.
Reserve Factor Applicable Mortality Basis YRT Factor
Factor Pointer TAI specific field to identify applicable
mortality table used when calculating reserves.
Attained Age TAI specific field. Default is 1
Setback TAI specific field. Default is zero
Class Switch TAI specific field. Valuation Class (D=Distinct)
Curtate Switch This field indicates whether reserves are on a
curtate or continuous basis.
Caption Hartford's TAI Valuation Method
Error Code Informational field used by Hartford -- Usually
Blank
Reserve Class 1 This field contains insured's smoker class. For
Joint Life policies, this field contains the class
for Insured 1.
Reserve Class 2 This field contains insured's smoker class. For
Joint Life policies, this field contains the class
for Insured 2. (If this is not a Joint Life
policy, this field will be blank.)
Currency Code This field identifies the currency. (USD or CND if
applicable)
Valuation Interest TAI assigned field that is used to read applicable
Pointer interest rates when calculating 1/2 cx reserves.
NAR Type This field indicates the method used in
determining the Total Net Amount at Risk (as
defined in Schedule B).
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 2 -- Effective 10/01/2008
15
AMENDMENT 3
EFFECTIVE OCTOBER 3, 2011
TO THE
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM
REINSURANCE AGREEMENT FOR EXCESS RISKS
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
THE CANADA LIFE ASSURANCE COMPANY ("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
reflect that the following Products and Riders were added to the Agreement as of
the Effective Date shown for each on Schedule A:
- Hartford Founders Plus UL
- Hartford Founders Plus UL Extended Value Option
- DisabilityAccess Rider
- LongevityAccess Rider
- LifeAccess Care Rider
- Joint LifeAccess Rider, and
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
1. The above recitals are true and accurate and are incorporated
herein.
2. Schedule A is deleted in its entirety and replaced with the attached
revised Schedule A.
3. Except as herein amended, all other terms and conditions of the
Agreement shall remain in full force and effect and unchanged.
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 3 -- Effective 10/03/2011
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below.
THE CANADA LIFE ASSURANCE COMPANY
By: /s/ Xxxxxx Xxxxxx By: /s/ Xxxx-Xxxxxxxx Xxxxxx
---------------------------- ----------------------------
Name: Xxxxxx Xxxxxx, FSA, FCIA, Name: Xxxx-Xxxxxxxx Xxxxxx, FSA,
MAAA FCIA
Title: Senior Vice-President Life Title: Senior Vice President Life
Reinsurance Reinsurance
Date: October 27 2011 Date: October 28, 2011
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxx Xxxxxxx Attest: /s/ Xxxxxxx Xxxxxx
---------------------------- ----------------------------
Name: Xxxx Xxxxxxx, FSA, MAAA Name: Xxxxxxx Xxxxxx, FSA, MAAA
Title: Assistant Vice President and Title: Senior Vice President
Actuary Individual Life Individual Life Product
Product Management Management
Date: November 29, 2011 Date: 12/2/11
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 3 -- Effective 10/03/2011
2
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 3, 2011
SINGLE LIFE PLANS OF INSURANCE
BASE POLICY VALUATION MORTALITY TABLE(S) NAR EFFECTIVE
TYPE* DATE**
STAG UL 1980 CSO M/F S/NS ULTIMATE ALB A 10/01/2008
HARTFORD BICENTENNIAL UL FOUNDERS 2001 CSO M/F S/NS ULTIMATE ANB A 10/01/2008
HARTFORD UL CV 1980 CSO M/F S/NS ULTIMATE ALB A 10/01/2008
STAG WALL STREET VUL 1980 CSO M/F S/NS ULTIMATE ALB A 10/01/2008
STAG PROTECTOR II VUL 1980 CSO M/F S/NS ULTIMATE ALB A 10/01/2008
HARTFORD LEADERS VUL LEGACY 2001 CSO M/F COMPOSITE ULTIMATE ANB A 10/01/2008
STAG ACCUMULATOR LI VUL 1980 CSO M/F UNISMOKE ULTIMATE ALB A 10/01/2008
HARTFORD LEADERS VUL LIBERTY (A) 1980 CSO M/F UNISMOKE ULTIMATE ANB A 10/01/2008
HARTFORD LEADERS VUL LIBERTY (B) 2001 CSO M/F COMPOSITE ULTIMATE ANB A 10/01/2008
LIFE SOLUTIONS II UL (A) 1980 CSO M/F S/NS ULTIMATE ALB A 10/01/2008
LIFE SOLUTIONS II UL (B) 2001 CSO M/F S/NS ULTIMATE ALB A 10/01/2008
HARTFORD ADVANCED UNIVERSAL LIFE 2001 CSO M/F S/NS ULTIMATE ALB B 10/01/2008
HARTFORD BICENTENNIAL UL FREEDOM (A) 2001 CSO M/F S/NS ULTIMATE ANB B 10/01/2008
HARTFORD BICENTENNIAL UL FREEDOM (B) 2001 CSO M/F S/NS ULTIMATE ANB A 07/01/2010
HARTFORD QUANTUM II VUL (A) 2001 CSO M/F S/NS ULTIMATE ALB A 10/01/2008
HARTFORD QUANTUM II VUL (B) 2001 CSO M/F S/NS ULTIMATE ANB A 10/01/2008
HARTFORD EXTRAORDINARY WHOLE LIFE (A) 2001 CSO M/F S/NS ULTIMATE ALB A 10/01/2008
HARTFORD EXTRAORDINARY WHOLE LIFE (B) 2001 CSO M/F S/NS ULTIMATE ANB A 10/01/2008
HARTFORD BICENTENNIAL XX XXXXXXXX XX 0000 XXX X/X X/XX XXXXXXXX ANB A 03/05/2010
HARTFORD BICENTENNIAL UL FOUNDERS II EXTENDED VALUE OPTION 2001 CSO M/F S/NS ULTIMATE ANB A 03/05/2010
HARTFORD FRONTIER INDEXED UNIVERSAL LIFE 2001 CSO M/F S/NS ULTIMATE ANB A 09/07/2010
HARTFORD FRONTIER INDEXED UNIVERSAL LIFE EXTENDED VALUE OPTION 2001 CSO M/F S/NS ULTIMATE ANB A 09/07/2010
HARTFORD FOUNDERS PLUS UL 2001 CSO M/F S/NS ULTIMATE ANB A 10/03/2011
HARTFORD FOUNDERS PLUS UL EXTENDED VALUE OPTION 2001 CSO M/F S/NS ULTIMATE ANB A 10/03/2011
------------
* NAR Type is described in Schedule B.
** Eligibility for new business is based on issue date on or after the
Effective Date shown.
RIDERS PROVIDING DEATH BENEFITS EFFECTIVE
THAT ARE ELIGIBLE FOR REINSURANCE DATE**
--------------------------------------------------------------------------------
Primary Term Insured Rider 10/01/2008
Other Covered Insured Term Life Rider 10/01/2008
Cost of Living Adjustment (COLA) Rider 10/01/2008
NOTE: NAR Type for term riders above is C. For COLA Rider, NAR Type follows Base
Policy to which it is attached.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS EFFECTIVE
BUT THAT ARE NOT ELIGIBLE FOR REINSURANCE DATE**
--------------------------------------------------------------------------------
Accidental Death Benefit (ADB) Rider 10/01/2008
Accelerated Benefit Rider (ABR) 10/01/2008
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 3 -- Effective 10/03/2011
3
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 3, 2011
RIDERS THAT PROVIDE ADDITIONAL BENEFITS EFFECTIVE
BUT THAT ARE NOT ELIGIBLE FOR REINSURANCE (CONTINUED) DATE**
--------------------------------------------------------------------------------
LifeAccess Accelerated Benefit Rider (LAABR) 10/01/2008
Policy Continuation Rider 10/01/2008
Policy Protection Rider (PPR) 10/01/2008
Enhanced No Lapse Guarantee Rider 10/01/2008
Lifetime No Lapse Guarantee Rider 10/01/2008
Guaranteed Minimum Accumulation Benefit (GMAB) Rider 10/01/2008
Paid-Up Life Insurance Rider 10/01/2008
Conversion Option Rider 10/01/2008
Overloan Protection Rider 10/01/2008
Waiver of Specified Amount (WSA) Rider 10/01/2008
Waiver of Monthly Deductions (WMD) Rider 10/01/2008
Children's Life Insurance Rider 10/01/2008
Foreign Travel Exclusion Rider 10/01/2008
Estate Tax Repeal Benefit Rider 10/01/2008
Modified Surrender Value Rider 10/01/2008
Cash Surrender Value Endorsement 10/01/2008
Automatic Premium Payment Rider 10/01/2008
Additional Premium Rider 10/01/2008
Qualified Plan Rider 10/01/2008
Owner Designated Settlement Option Rider 03/05/2010
DisabilityAccess Rider (DAR) 08/11/2009
LongevityAccess Rider 03/14/2011
LifeAccess Care Rider 04/11/2011
------------
** Eligibility for new business is based on issue date on or after the
Effective Date shown.
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING ADDITIONAL DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Primary Insured Term Rider: Provides additional level term life coverage on the
base policy insured.
Other Covered Insured Term Life Rider: Provides level term life coverage on an
insured other than the base policy insured.
Cost of Living Adjustment (COLA) Rider: Provides for biennial face amount
increases, without underwriting, based on increases in the Consumer Price Index.
The maximum amount of any single increase is $50,000. Any increase can be
declined by the policyholder, which stops future increases. Available only at
issue and only for non-substandard issue ages 0 through 60.
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 3 -- Effective 10/03/2011
4
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 3, 2011
RIDERS THAT PROVIDE ADDITIONAL BENEFITS THAT ARE NOT ELIGIBLE FOR REINSURANCE:
Accidental Death Benefit Rider: Pays an additional death benefit if the death on
the insured is caused by a qualifying accident.
Accelerated Benefit Rider: Provides the policyholder up to 100% of the death
benefit, discounted with interest, if the insured's life expectancy is 12 months
or less. After acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk as described
in Schedule B, and the Reinsurer shall be liable for such Reinsured Net Amount
at Risk upon the death of the insured.
LifeAccess Accelerated Benefit Rider (LAABR): Provides for monthly benefits (up
to 2% of death benefit) if insured meets certain ADL and home-care requirements.
In accordance with Schedule B, during and after acceleration, the Ceding Company
shall continue to pay the Reinsurer Reinsurance Premiums on the Reinsured Net
Amount at Risk based on the Death Benefit prior to acceleration, and the
Reinsurer shall be liable for such Reinsured Net Amount at Risk upon the death
of the insured.
Policy Continuation Rider: Intended to prevent the lapse of highly loaned
policies.
Policy Protection Rider: Protects the death benefit of the base policy and any
primary insured term rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Enhanced No Lapse Guarantee Rider: Provides that the policy will not lapse as
long as cumulative premiums paid less indebtedness less withdrawals are greater
than or equal to the cumulative no lapse guarantee premiums. Length of guarantee
varies by issue age.
Lifetime No Lapse Guarantee Rider: Same as Enhanced No Lapse Guarantee Rider but
with lifetime guarantee.
Guaranteed Minimum Accumulation Benefit (GMAB) Rider: Provides, at the end of
the GMAB Guarantee Period (usually 20 years), that the policy Account Value will
be increased, if necessary, to equal the sum of gross premiums paid to that
date. There is a small monthly charge and a minimum cumulative premium
requirement to keep the rider in force.
Paid-Up Life Insurance Rider: Similar to the GMAB rider, with the same Guarantee
Period, a monthly charge, and a cumulative premium requirement. At end of the
Guarantee Period, the owner may elect to change coverage to paid-up life using
the Account Value as a 5% NSP to determine the amount of coverage; however, the
amount of coverage will never be lower than the sum of gross premiums paid to
that date. Once elected, premiums are no longer payable.
Conversion Option Rider: During certain policy years and prior to the insured's
attained age 70, the policy may be converted, without evidence of insurability,
to any permanent plan of life insurance the Ceding Company then makes available
for conversions of this policy.
Overloan Protection Rider: Protects a policy from terminating due to overloan.
Waiver of Specified Amount (WSA) Rider: Waives a specified amount monthly while
the insured is disabled.
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 3 -- Effective 10/03/2011
5
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 3, 2011
Waiver of Monthly Deductions (WMD) Rider: Waives monthly deduction amounts while
the insured is disabled.
Children's Life Insurance Rider: Provides level term life coverage for each
child of the insured.
Foreign Travel Exclusion Rider: Provides a limited death benefit (Account Value
less indebtedness) if the insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
Estate Tax Repeal Benefit Rider: Pays the policy Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Modified Surrender Value Rider: Changes the Cash Surrender Value definition (to
equal the Account Value) if the policy is surrendered within 3 years after the
policy issue date.
Cash Surrender Value Endorsement: Provides for enhanced Cash Surrender Value
(equal to the current Account Value) in the event of policy surrender in the
first 4 policy years, unless the policy is exchanged under Section 1035 to
another company's policy.
Automatic Premium Payment Rider: Provides for any Scheduled Premium due and
unpaid by the end of any Policy Grace Period to be paid by an automatic
deduction from the Account Value, if the Account Value exceeds the Guaranteed
Cash Value.
Additional Premium Rider: Allows additional premium amounts to be paid at the
same payment intervals as scheduled premiums.
Qualified Plan Rider: Indicates that the policy is owned by a qualified plan,
details the policy owner's reporting responsibilities to the Ceding Company, and
describes features and activities that are unavailable when the policy is owned
by a Qualified Plan.
Owner Designated Settlement Option Rider. Allows the policy owner to designate a
Settlement Option to be used for the payment of Death Proceeds.
DisabilitvAccess Rider (DAR): Pays a monthly benefit upon disability of the
primary insured on the life insurance policy to which it is attached. The amount
of monthly benefit is permanently set at rider issue and is limited to a
24-month benefit period. The maximum monthly benefit amount is $5,000; it is
further limited to 2% of the initial face amount or 30% of monthly income at
policy issue. The minimum monthly benefit is $1,000.
LongevitvAccess Rider: Provides for monthly benefits (up to 1% of death benefit)
when the insured reaches age 90 and meets the rider's eligibility requirements.
Includes a residual death benefit of 10% of the death benefit prior to
withdrawals. In accordance with Schedule B, during and after withdrawals, the
Ceding Company shall continue to pay the Reinsurer Reinsurance Premiums on the
Reinsured Net Amount at Risk based on the Death Benefit prior to withdrawals,
and the Reinsurer shall be liable for such Reinsured Net Amount at Risk upon the
death of the insured.
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 3 -- Effective 10/03/2011
6
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 3, 2011
LifeAccess Care Rider: Similar to the LifeAccess Accelerated Benefit Rider, but
filed as a health product in some states. Provides for monthly benefits (up to
2% of death benefit) if insured meets certain ADL and home-care requirements.
LAST SURVIVOR PLANS OF INSURANCE
NAR EFFECTIVE
BASE POLICY VALUATION MORTALITY TABLE(S) TPYE* DATE**
---------------------------------------------------------------------------------------------------------------------------------
Hartford Leaders VUL Joint Legacy 2001 CSO M/F S/NS Ultimate ALB A 10/01/2008
Hartford Leaders VUL Joint Legacy II 2001 CSO M/F S/NS Ultimate ANB A 10/01/2008
Hartford Advanced Last Survivor UL 2001 CSO M/F S/NS Ultimate ALB B 10/01/2008
Hartford Bicentennial XX Xxxxx Xxxxxxx 0000 XXX X/X X/XX Xxxxxxxx XXX X 10/01/2008
Hartford Bicentennial UL Joint Freedom ll(a) 2001 CSO M/F S/NS Ultimate ANB B 10/01/2008
Hartford Bicentennial UL Joint Freedom ll(b) 2001 CSO M/F S/NS Ultimate ANB A 07/01/2010
------------
* NAR Type is described in Schedule B.
** Eligibility for new business is based on issue date on or after the
Effective Date shown.
RIDERS PROVIDING DEATH BENEFITS EFFECTIVE
THAT ARE ELIGIBLE FOR REINSURANCE DATE**
--------------------------------------------------------------------------------
Estate Protection Rider (NAR Type is C) 10/01/2008
RIDERS THAT PROVIDE ADDITIONAL BENEFITS EFFECTIVE
BUT THAT ARE NOT ELIGIBLE FOR REINSURANCE DATE**
--------------------------------------------------------------------------------
LS Exchange Option Rider 10/01/2008
Policy Protection Rider 10/01/2008
Estate Tax Repeal Rider 10/01/2008
Foreign Travel Exclusion Rider 10/01/2008
Guaranteed Minimum Accumulation Benefit (GMAB) Rider 10/01/2008
Paid-Up Life Insurance Rider 10/01/2008
Owner Designated Settlement Option Rider 03/05/2010
Joint LifeAccess Rider 01/31/2011
------------
** Eligibility for new business is based on issue date on or after the
Effective Date shown.
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Estate Protection Rider: This rider provides last survivor level term life
insurance on the base policy insureds for three years.
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 3 -- Effective 10/03/2011
7
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 3, 2011
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
LS Exchange Option Rider: Allows a Last Survivor policy to be split into two
Single Life policies, without new evidence of insurability, if divorce, business
dissolution, or estate-tax repeal or reduction occurs. The face amount of each
new Single Life policy will equal one half of the Last Survivor policy face
amount. Upon a split, reinsurance will continue at point-in-scale rates for each
single life, as documented in Section X.C. (This rider is not available when one
of the insureds is uninsurable or above Table H.)
Policy Protection Rider: Protects the death benefit of the base policy and any
Estate Protection Rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Estate Tax Repeal Rider: Will pay the Account Value less indebtedness if the
Federal Estate Tax Law is fully repealed by December 31, 2010, and the Ceding
Company receives a request for this benefit amount from the policy owner.
Foreign Travel Exclusion: Provides a limited death benefit (Account Value less
indebtedness) if either insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
Guaranteed Minimum Accumulation Benefit Rider and Paid-Up Life Insurance Rider:
Same as Single Life riders.
Owner Designated Settlement Option Rider. Allows the policy owner to designate a
Settlement Option to be used for the payment of Death Proceeds.
Joint LifeAccess Rider: Similar to the LifeAccess Accelerated Benefit Rider.
Available only on Last Survivor products where the benefit will be payable for
the last surviving insured if chronically ill or if both insureds are
concurrently chronically ill.
Allocated Retention Pool (Excess Risks) -- Effective 10/01/2008
Between HLAIC and Canada Life
Amendment 3 -- Effective 10/03/2011
8
