AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM
REINSURANCE AGREEMENT
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
(NAIC NO. 71153)
(FEIN 00-0000000)
AND
SWISS RE LIFE & HEALTH AMERICA INC.
(NAIC NO. 82627)
(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 10
VI. Reinsurance Premiums 11
VII. Reinsurance Reporting 14
VIII. Credit for Reinsurance 15
IX. Errors 17
X. Policy Conversions, Other Changes, and Terminations 18
XI. Policy Reinstatement 21
XII. Claims 22
XIII. Extra-Contractual Obligations 27
XIV. DAC Tax Section 1.848-2(g)(8) Election 27
XV. Insolvency 28
XVI. Recapture of Reinsured Business 29
XVII. Offset 30
XVIII. Dispute Resolution 30
XIX. Arbitration 31
XX. Termination of this Agreement for New Business 33
XXI. Confidentiality 33
XXII. General Provisions 35
XXIII. Notices and Communications 38
Execution 40
SCHEDULES
A. Plans of Insurance Covered Under this Agreement 41
B. Reinsurance Specifications 47
C. Foreign National Underwriting Program 49
D. Other Special Underwriting Programs 52
E. Ceding Company's Standard Underwriting Practices and 55
Guidelines
F. Policies Eligible for Reinsurance Under this Agreement 70
EXHIBITS
I. Reinsurance Premium Calculation 71
II. Retention, Binding, and Total Pool Issue Limits 75
III. Annual Rates per $1,000 of Reinsured Net Amount at Risk 79
IV. Allowance Percentages to be Applied to the Annual Rates per 80
$1,000
V. Substandard Table Percentages 81
VI. Conditional Receipt or Temporary Insurance Agreement 82
VII. Reinsurance Reports 86
ALL SCHEDULES AND EXHIBITS ATTACHED WILL BE CONSIDERED PART OF THIS REINSURANCE
AGREEMENT.
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ARTICLE I
THE AGREEMENT
A. The Agreement and Parties to the Agreement
This is a monthly renewable term agreement for indemnity life reinsurance (the
"Agreement") solely between Hartford Life and Annuity Insurance Company, a
Connecticut corporation ("Ceding Company"), and Swiss Re Life & Health America
Inc., a Connecticut ("Reinsurer"). The Ceding Company and the Reinsurer are each
referred to individually as a "Party," and collectively as the "Parties," to
this Agreement.
This Agreement shall be binding upon the Ceding Company and the Reinsurer and
their respective successors and assignees.
The acceptance of risks under this Agreement will create no right or legal
relationship between the Reinsurer and the insured, owner, beneficiary, or
assignee of any insurance policy or other contract of the Ceding Company
B. Complete and Entire Agreement
This Agreement, which includes all Schedules and Exhibits attached hereto and
any amendments entered into hereafter, constitutes the entire agreement of the
Parties pertaining to the transaction contemplated by this Agreement. This
Agreement supersedes and replaces all oral and written agreements previously
made or existing by and between the Parties or their representatives with regard
to the transaction contemplated by this Agreement.
This Agreement shall not be amended or modified except by written amendment,
signed by duly authorized officers of each Party.
Routine communications are those communications contemplated by this Agreement
that are not intended to change any of its risk transfer characteristics. Such
communications may include, but are not limited to, reinsurance reporting and
premium administration, underwriting review, claim submission and review,
participation in claim litigation and settlements, audit reviews, and the
resolution of disputes by arbitration or court proceedings. These communications
serve to clarify the obligations of the Parties under this Agreement and should
not be construed as modifications of this Agreement. Any modifications of this
Agreement shall be effected only by written amendment as provided for above.
ARTICLE II
EFFECTIVE DATE
The Effective Date of this Agreement is October 1, 2008.
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ARTICLE III
REINSURANCE COVERAGE
Reinsurance under this Agreement will apply to those Plans of Insurance and
Riders set forth in Schedule A that also fall within a category of policies
eligible for reinsurance under this Agreement as described in Schedule F. Such
reinsurance shall be either on an automatic basis, subject to the requirements
set forth in Section A below, on an automatic processing basis, subject to the
requirements set forth in Section B below, or on a facultative basis, subject to
the requirements set forth in Section C below. The specifications for all
reinsurance under this Agreement are provided in Schedule B.
Once coverage is reinsured on a life under this Agreement, unless the Reinsurer
consents, such consent not to be unreasonably withheld, the Ceding Company or
its affiliate shall continue to retain its share of each risk on that life, as
described in this Agreement and in any other life reinsurance agreement
applicable to risk on that life. Any changes to the Ceding Company's retention,
and any resulting effect on the Automatic Binding Limits, as specified in
Exhibit II, shall be made by amendment to this Agreement, in accordance with
Section I.B.
Each reinsured risk must be issued with a suicide and contestable period equal
to the minimum of (a) two (2) years, (b) the maximum period allowed by
applicable law, or (c) a period agreed to in writing by the Reinsurer.
A. Automatic Reinsurance
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:
a. have been a legal resident of the United States or Canada for at least
six months;
b. be a citizen of the United States or Canada; or
c. qualify for the Foreign National Underwriting Program as specified in
Schedule C.
2. Each risk must be underwritten according to the Ceding Company's Standard
Underwriting Practices and Guidelines or one of the special underwriting
programs. The Ceding Company's Standard Underwriting Practices and Guidelines as
of the Effective Date are described in Schedule E, and the Ceding Company's
special underwriting programs as of the Effective Date are described in Schedule
C or Schedule D. Changes to such documents will be handled in accordance with
Section XXII.L.
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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 the
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 any risk that is not an Excess Risk, if the Ceding Company submitted any
risk on a life of a proposed insured facultatively to the Reinsurer during the
last three (3) years:
a. for reinsurance capacity, then the Ceding Company shall confirm the
Reinsurer's available capacity for such risk. Upon receipt of the
request, the Reinsurer shall advise the Ceding Company of its
available capacity for the life on the same or next following
business day. After the Reinsurer has advised the Ceding Company of
its available capacity, provided all the other requirements for
Automatic Reinsurance under this Agreement are met, the Ceding
Company may cede to the Reinsurer no more than such amount on an
automatic basis; or
b. for reasons other than reinsurance capacity, and the Reinsurer's
assessment of the risk so submitted was:
(1) the same as, or more favorable than, the Ceding Company's
assessment at that time, then, provided all the other
requirements for Automatic Reinsurance under this Agreement are
met, the Ceding Company may cede the risk under this Agreement
on an automatic basis at its True Assessed Risk Class; or
(2) less favorable than the Ceding Company's assessment at that
time, then, provided all the other requirements for Automatic
Reinsurance under this Agreement are met, the Ceding Company may
provisionally cede the risk under this Agreement on an automatic
basis at its True Assessed Risk Class, provided the Ceding
Company then submits the risk to the Reinsurer for review in
accordance with Section V.E;
otherwise, provided all the other requirements for Automatic Reinsurance under
this Agreement are met, the Ceding Company shall cede the risk under this
Agreement on an automatic basis.
For any risk that is an Excess Risk, 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
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facultatively no longer applies.
4. The maximum issue age for each life is 85. For Last Survivor policies, the
minimum issue age is 18, for all other policies, the minimum age is 0.
5. The mortality rating on each life does not exceed Table P. However, for Last
Survivor policies, one life may be uninsurable if the other life does not exceed
Table F.
6. The total amount of risk on that life to be reinsured in the Automatic Pool
and under any other individual life reinsurance agreement with any reinsurer
does not exceed the Automatic Binding Limit for that life shown in Exhibit II.
7. For any Excess Risk, the total amount of insurance on each life, in force
and applied for in all companies does not exceed the Jumbo Limits as set forth
in Exhibit II. For any such life, the total amount of insurance in force
includes any amount(s) to be replaced. For the Ceding Company's in-force and
applied-for policies on such life, this total amount of insurance includes all
scheduled increases in amount of insurance on such policies.
Any amounts of insurance being replaced by the Ceding Company may be deducted
from this total amount of insurance only under the following conditions:
a. Existing permanent insurance is being replaced by the Ceding
Company, with or without a Section 1035 exchange, and the Ceding
Company has obtained a duly executed absolute assignment of the
insurance being replaced; or
b. Existing term insurance is being replaced by the Ceding Company, and
the Ceding Company has obtained a duly executed absolute assignment
of the insurance being replaced; or
c. An internal replacement is being made, where the Ceding Company is
replacing an in-force policy with a new policy of equal or greater
death benefit.
When the total amount 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. 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 policy is later effected during the lifetime of the insured, 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 from that
effective date of cancellation.
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8. The Ceding Company, or its affiliates, accepts its full retention on each
life, as described in this Agreement, taking into account concurrently issued
amounts and all other inforce policies with the Ceding Company, applicable to
risk on that life.
9. To the best of the Ceding Company's knowledge, the policy is not a
stranger-owned life insurance policy (STOLI) or purchased as part of a premium
financing program, except for those programs specified in Schedule E or approved
in writing by the Reinsurer.
10. If all the other requirements for Automatic Reinsurance are met and the
life is a player or coach on a team in the National Hockey League, the National
Football League, the National Basketball Association or Major League Baseball,
and:
a. The risk is not an Excess Risk, then the Ceding Company shall notify
the Reinsurer of this fact at the time of issue of the risk; or
b. The risk is an Excess Risk, then, prior to ceding the risk
automatically under this Agreement, the Ceding Company must confirm
the Reinsurer's available capacity for that risk. The Ceding Company,
by telephone call or electronic mail, shall: (i) notify the
Reinsurer's Chief Underwriter, or designee, of the life's name, date
of birth, sport and team affiliation, the total life insurance in
force and to be placed on the life, and the amount of new reinsurance
coverage required from the Reinsurer; and (ii) confirm that an
application for insurance on the life has been completed. The
Reinsurer shall endeavor to inform the Ceding Company of its
available capacity for the risk within two business days after such
notification and confirmation. After the Reinsurer has advised the
Ceding Company of the amount of its available capacity, the Ceding
Company may then cede to the Reinsurer no more than that amount on an
automatic basis under this Agreement.
B. Automatic Processing
If the requirements for Automatic Reinsurance are met for a life except for the
requirement stated above in Section A.6, but the total amount of risk on that
life to be reinsured in the Automatic Pool and under any other individual life
reinsurance agreement with any reinsurer 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.
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C. Facultative Reinsurance
If the requirements for Automatic Reinsurance are not met and the Ceding Company
applies for Facultative Reinsurance with the Reinsurer, or if the requirements
for Automatic Reinsurance are met but the Ceding Company prefers to apply for
Facultative Reinsurance with the Reinsurer, then the Ceding Company shall submit
to the Reinsurer sufficient evidence agreed upon between the Ceding Company and
the Reinsurer, relating to the insurability of each life submitted for
Facultative Reinsurance. For Last Survivor policies where one life is deemed
uninsurable, only the information for the other life needs to be submitted.
The Reinsurer shall promptly notify the Ceding Company 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
accepted and coverage is placed.
Once the Ceding Company has notified the Reinsurer in writing of its acceptance
of the Reinsurer's final underwriting offer, then Facultative Reinsurance for
the risk under this Agreement will become effective as described below 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 True Assessed Risk Class does not exceed Table F (or a
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combination of flat extra and table assessment equivalent to Table F) and was
not a decline (if it was a decline, the Reinsurer would have no liability for
such coverage except as described below in Paragraph 5); and
3. There is no coverage in effect on the life in the Automatic Pool through any
other Insurance Receipt having an effective date preceding, or the same as, the
effective date of such coverage; and
4. If such coverage is on a risk that also exceeds either the Automatic Binding
Limit or the Jumbo Limit for the risk as shown in Exhibit II, then the
Reinsurer's liability for such excess amount of coverage will be limited by the
Reinsurer's available capacity; and
5. If the Ceding Company has accepted any final underwriting offer(s) for
Facultative Reinsurance on the risk (whether such offer is made by the
Reinsurer, as described above in Section III.C, or by any other reinsurer(s)),
then the Reinsurer's liability for such coverage under the Insurance Receipt
will be equal to:
a. The amount of coverage in effect under the terms of the Insurance
Receipt; multiplied by
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.
G. Notwithstanding Section III.A.9, the Reinsurer shall be liable for any
stranger-owned life insurance (STOLI) or premium-financed cases that are
undisclosed or misrepresented to the Ceding Company and that are discovered
after a risk has been made effective, unless and until such risk is successfully
rescinded under Article X.H.
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ARTICLE V
UNDERWRITING
A. 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.
B. For any risk ceded automatically under this Agreement, the Ceding Company
shall provide to the Reinsurer all information in its possession, reasonably
requested by the Reinsurer that was used in underwriting and assessing the risk.
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.
C. For any risk reviewed by the Reinsurer where the Reinsurer's assessment of
the risk differs materially from that of the Ceding Company, the Parties shall
work together in good faith to develop a mutually agreeable risk assessment that
shall be used to calculate the Reinsurance Premiums for that risk from the
beginning of the Reinsurer's liability for such risk under this Agreement. If
the Parties cannot settle on a mutually agreeable risk assessment within a
reasonable time period, they shall submit the risk for expedited arbitration
under Article XIX. If the expedited arbitration process determines that the risk
should have been declined, the Reinsurer will have no liability for such risk.
D. Any unintentional or accidental failure of the Ceding Company to adhere to
the underwriting practices and guidelines described in Schedule C, D, or E, as
applicable, in the assessment of risks, resulting from an oversight or clerical
error by the Ceding Company shall not be grounds for denying reinsurance
coverage on a risk. In such cases, the Parties shall work together in good faith
to develop a mutually agreeable risk assessment that shall be used to calculate
the Reinsurance Premiums for that risk from the beginning of the Reinsurer's
liability for such risk under this Agreement. Notwithstanding the foregoing,
grossly negligent acts, of the Ceding Company, recurring material errors or
material errors that are part of a pattern evidencing a disregard for the
underwriting practices and guidelines described in Schedules C, D, or E, as
applicable, may be grounds for denying reinsurance coverage on a risk.
E. For any risk provisionally ceded in accordance with Section III.A.3.b (2),
the Ceding Company shall submit the risk to the Reinsurer for review as soon as
the coverage is placed. If the Reinsurer's assessment of the risk is:
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1. not more than two rating tables less favorable than the Ceding Company's
assessment, then:
a. the Reinsurer shall accept the risk automatically at the Ceding
Company's True Assessed Risk Class; and
b. this submission of the risk to the Reinsurer will not be considered a
facultative submission for any future risks on the proposed
insured(s); or
2. more than two rating tables less favorable than the Ceding Company's
assessment but still currently insurable (that is, not a "decline" or "postpone"
assessment), then:
a. the Ceding Company may either:
(1) accept the Reinsurer's risk assessment to calculate the
Reinsurance Premiums for the risk from the beginning of the
Reinsurer's liability for the risk under this Agreement; or
(2) decide not to reinsure the risk under this Agreement; and
b. this submission of the risk to the Reinsurer will be considered a
facultative submission for any future risks on the proposed
insured(s); or
3. not currently insurable (that is, a "decline" or "postpone" assessment),
then:
a. the risk shall not be reinsured under this Agreement; and
b. this submission of the risk to the Reinsurer will be considered a
facultative submission for any future risks on the proposed
insured(s).
ARTICLE VI
REINSURANCE PREMIUMS
A. Computation
Reinsurance Premiums under this Agreement shall be calculated as described in
Exhibit I.
B. Timing
Reinsurance Premiums are payable each month of coverage for reinsured risks in
force at the end of the preceding month. For newly reinsured risks with a
reinsurance effective date during the current month, the monthly Reinsurance
Premium for the first month of coverage will be payable in the next following
monthly statement.
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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 of the policy. If termination is due to
death, unearned Reinsurance Premium will be determined as of the date of death.
E. Guaranteed Rates
The Annual Rates per $1,000 of Reinsured Net Amount at Risk set forth in Exhibit
III are guaranteed. The Allowance Percentages set forth in Exhibit IV are also
guaranteed, except to the extent that the Reinsurer may adjust the Allowance
Percentages but only in an amount required to ensure that the Reinsurer receives
its proportionate share of any increases in premium rates, policy charges
including cost of insurance rates, or administrative fees as implemented by the
Ceding Company for the reinsured policies.
The Reinsurer will establish statutory reserves for business reinsured under
this Agreement in its statutory financial statements in accordance with
applicable accounting and valuation laws, regulations and actuarial guidelines
to which the Reinsurer is subject. Notwithstanding the foregoing, the Reinsurer
intends to hold statutory reserves for business reinsured under this Agreement
on a 1/24 cx basis using the 2001 CSO Sex and Smoker Distinct Ultimate Table and
the prevailing statutory interest rate.
If the reserve methodology used by the Reinsurer on the Effective Date must be
modified due to a change in law or regulation or a change in a regulator's
interpretation or application of existing law or regulation (hereinafter a
"Reserve Methodology Change Event"), then the Reinsurer will notify the Ceding
Company of the occurrence of the Reserve Methodology Change Event within one
hundred eighty (180) days after first learning of such event, and the Reinsurer
will have the right to transfer this Agreement to an affiliate reinsurer not
subject to U.S. insurance laws, provided that:
1. The Ceding Company is able to take Reinsurance Credit as provided in Article
VIII; and
2. The affiliate reinsurer accepts transfer of this Agreement (including all
amendments) by novation, without any material modification to the substantive
terms of the Agreement except as necessary to enable the Ceding Company to take
Reinsurance Credit in accordance with Article VIII (notwithstanding the terms of
Article XIV, if the Reinsurer novates this Agreement to an entity that is not
subject to United States taxation, the joint DAC Tax Election under Article XIV
shall be invalid for consideration received after the date of the novation); and
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3. The transfer by novation to the affiliate reinsurer does not result in the
payment of any United States tax by the Ceding Company; and
4. The affiliate reinsurer has, at the time of the transfer, a Xxxxx'x or
Standard & Poor's rating equivalent to the Reinsurer's on the execution date of
this Agreement, or the Reinsurer provides a performance guarantee to the Ceding
Company, issued by the Reinsurer or by an affiliate with, at the time of the
transfer, a Xxxxx'x or Standard & Poor's rating equivalent to the Reinsurer's on
the execution date of this Agreement; any such performance guarantee will apply
only to amounts reinsured under this Agreement, including reasonable costs of
collection, enforcement of the performance guarantee, and interest thereon, and
will terminate automatically if and when the affiliate reinsurer subsequently
obtains a Xxxxx'x or Standard & Poor's rating equivalent to the Reinsurer's on
the execution date of this Agreement; and
5. If the Reserve Methodology Change Event is due to a change in a regulator's
interpretation or application of existing law or regulation, the Reinsurer
provides documentation to the Ceding Company showing details of the change in
interpretation and a demonstration of the Reinsurer's application of such change
to business retained by the Reinsurer.
In the event of a novation under this Section, the Parties shall amend this
Agreement in accordance with Article I.B to reflect the mutually agreed upon
terms applicable to such transfer. Such terms shall include, but shall not be
limited to, provisions regarding Credit for Reinsurance, Service of Suit and
Federal Excise Tax, as applicable.
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
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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 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.
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For Automatic and Facultative Reinsurance becoming effective during the calendar
month, the Ceding Company will notify the Reinsurer of such new reinsurance
business in the succeeding monthly report. However, the first three monthly
reports under this Agreement will be sent within one hundred twenty (120) days
after the due date of the first monthly report.
Additional reports reasonably requested by a Party will be provided by the other
Party in a timely manner.
B. Reporting Format and Medium
The information to be provided by the Ceding Company in these monthly reports to
the Reinsurer shall be in a format, and 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.
The Ceding Company shall inform the Reinsurer at least one month in advance of
any change in the reporting format or data prior to its use in reports to the
Reinsurer. The Ceding Company shall provide the Reinsurer with a test file
containing such a change prior to its implementation in the production of
reports.
C. Reporting Delays
The Ceding Company shall inform the Reinsurer of any material delays.
ARTICLE VIII
CREDIT FOR REINSURANCE
X. Xxxxxxxxxxx Credit
The Parties intend that the Ceding Company be entitled to take credit for the
reinsurance ceded under this Agreement in its statutory financial statements
filed in all jurisdictions in which the Ceding Company is licensed, accredited,
or otherwise authorized to transact business ("Reinsurance Credit"). The Parties
shall use best efforts to ensure that such entitlement shall become and remain
available to the Ceding Company throughout the 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, as of the Effective Date of
the Agreement, 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
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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
If the Ceding Company believes in good faith it may not be entitled to claim
Reinsurance Credit, as described above, in total or in part, due to a change in
law or regulation, or due to a change in the interpretation or application of
existing law or regulation by a regulator (hereinafter an "Uncontrollable
Reserve Credit Event"), or due to a failure by the Reinsurer to maintain in
effect a required license or accreditation in any of the jurisdictions in which
the Ceding Company is licensed to transact insurance business (hereinafter a
"Controllable Reserve Credit Event"), then, subject to the Reinsurer's rights
and obligations to cure as defined in this Article, the Parties will take the
steps specified below in this Article.
The Party who first becomes aware of such event will provide prompt notice to
the other Party of the occurrence of either an Uncontrollable Reserve Credit
Event or a Controllable Reserve Credit Event (hereinafter collectively "Reserve
Credit Event").
Within fifteen (15) days of delivery of (if the delivering Party) or receipt of
(if the receiving Party) such notice, the Reinsurer shall propose to the Ceding
Company a cure to the Reserve Credit Event in a manner that eliminates the need
for or enables the Ceding Company to continue to receive Reinsurance Credit. The
Ceding Company may approve or disapprove the Reinsurer's cure proposal at its
sole discretion, except that the Ceding Company shall not deny unreasonably
disapprove any cure proposal presented by the Reinsurer as long as the proposed
cure meets all applicable laws and regulations regarding Reinsurance Credit and
does not require the payment of any United States tax by the Ceding Company.
Without limiting potential cure options, the Reinsurer's proposed cure may
include:
(i) Modifying the settlement terms of this Agreement during the Reserve
Credit Event to provide for monthly settlements in arrears during
the pendency of the Reserve Credit Event; or
(ii) Modifying the settlement terms of this Agreement during the Reserve
Credit Event to provide for settlements on a funds-withheld basis
during the pendency of the Reserve Credit Event; or
(iii) Transferring the reinsurance provided under this Agreement to
another reinsurer by novation of this Agreement, provided that such
other reinsurer meets the Ceding Company's established reinsurer
credit criteria in place at the time of the transfer and that such
other reinsurer accepts transfer of this Agreement (including all
amendments thereto) by novation without any material modification
to the substantive terms of the Agreement (notwithstanding the
terms of Article XIV, if the Reinsurer novates this Agreement to an
entity that is not subject to United States taxation, then the
joint DAC Tax Election under Article XIV shall be invalid for
consideration received after the date of novation); or
(iv) The Reinsurer establishing and maintaining sufficient collateral,
the form of which may be a letter of credit or assets in trust or
some combination of the two, provided such collateral meets all
applicable laws and regulations regarding Reinsurance
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Credit amending this Agreement accordingly and entering into
additional agreements as necessary; or
(v) Any combination of the foregoing or comparable approaches.
In the event the Parties agree upon a cure, the Parties shall amend this
Agreement, in accordance with Section I.B, to reflect the agreed-upon terms of
such cure.
If the Reinsurer cannot cure an Uncontrollable Reserve Credit Event, as set
forth above, but such Uncontrollable Reserve Credit Event can be cured by the
posting of collateral, within fifteen (15) days the Reinsurer shall establish
and maintain collateral, either a trust or a letter of credit, in a form which
meets all applicable standards of law and regulation to enable the Ceding
Company to claim Reinsurance Credit during the pendency of the Reserve Credit
Event. The Parties agree that in such an event, the cost of establishing and
maintaining the collateral will be shared equally by the Ceding Company and the
Reinsurer.
If the Reinsurer cannot cure a Controllable Reserve Credit Event, as set forth
above, but such Controllable Reserve Credit Event can be cured by the posting of
collateral, within fifteen (15) days the Reinsurer shall establish and maintain
collateral, either a trust or a letter of credit, in a form which meets all
applicable standards of law and regulation to enable the Ceding Company to claim
Credit during the pendency of the Reserve Credit Event. The Parties agree that
in such an event, the cost of establishing and maintaining the collateral will
be borne entirely by the Reinsurer.
If a Reserve Credit Event is not cured or the Reinsurer fails to establish or
maintain collateral as set forth above, then the Ceding Company may recapture
the Business Reinsured under this Agreement in accordance with 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.
If either Party discovers that the Ceding Company has failed to correctly report
ceded reinsurance as provided in this Agreement, the Reinsurer may audit the
Ceding Company's 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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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, utilizing the Annual Rates per $1,000 of Reinsured Net
Amount at Risk as set forth in Exhibit III.
Conversions from a policy not reinsured under this Agreement shall not be
reinsured under this Agreement.
B. Increases and Decreases in Policy Face Amount
1. If the face amount of a policy reinsured under this Agreement increases and:
a. The increase is subject to full underwriting, then the provisions of
Article III shall apply to the increase in reinsurance and
Reinsurance Premiums for the increase shall be based on new-business
rates.
Notwithstanding the foregoing, after termination of this Agreement
for new business, any increases subject to full underwriting must be
submitted to the Reinsurer on a facultative obligatory basis, if,
the increase in face amount is in excess of one million dollars ($1
million); or
b. The increase is not subject to full underwriting, and:
(1) The policy was ceded automatically, and:
(a) The face amount after the increase does not exceed the
applicable Total Allocation Limit or if it does exceed the
applicable Total Allocation Limit, it does not exceed the
applicable Automatic Issue Limit, then the Reinsurer will
accept the increase; or
(b) The increase does not meet the requirement above in (a),
then the Reinsurer must consent to the increase; or
(2) The policy was ceded facultatively, then the Reinsurer must
consent to the increase.
Reinsurance Premiums for increases not subject to full
underwriting shall be calculated on a point-in-scale basis,
utilizing the Annual Rates per $1,000 of
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Reinsured Net Amount at Risk as set forth in Exhibit III.
For increases in accordance with B.1.b (1), 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. 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. Reinsurance Premiums for exchanges from one
single life policy reinsured under this Agreement to a different single life
policy will be calculated on a point-in-scale basis using Annual Rates per
$1,000 of Reinsured Net Amount at Risk, as set forth in Exhibit III. Likewise,
Reinsurance Premiums for exchanges from one last survivor policy reinsured under
this Agreement to a different last survivor policy will be calculated on a
point-in-scale basis using Annual Rates per $1,000 of Reinsured Net Amount at
Risk, as set forth in Exhibit III. Reinsurance Premiums for 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 calculated at the applicable single life point-in-scale
Annual Rates per $1,000 of Reinsured Net Amount at Risk, as set forth in Exhibit
III. 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,
utilizing the Annual Rates per $1,000 of Reinsured Net Amount at Risk as set
forth in Exhibit III.
The Ceding Company shall notify the Reinsurer of any such changes in policies
reinsured under this Agreement in its monthly reinsurance reports.
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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 of
this Article.
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.
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 will be subject to the
Reinsurer's approval. On Automatic Reinsurance, the Reinsurer will accept this
change if the change qualifies under the underwriting practices and guidelines
described in Schedules C, D, or E, as applicable.
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H. Rescission of Policy Coverage Prior to Death Claim
1. 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.
2. The Ceding Company shall promptly notify the Reinsurer in the event a
rescission is challenged by legal action. The Ceding Company shall also furnish
all information material to such action.
Recognizing the urgent nature of these communications, within ten (10) business
days of receipt of such information, the Reinsurer shall notify the Ceding
Company in writing of the Reinsurer's decision whether or not it shall
participate in the legal and investigation expenses associated with the defense
of the rescission. The Reinsurer may extend the ten-day 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 ten-day period. If the Reinsurer does not
respond to the Ceding Company within the timeframe above, the Reinsurer will be
deemed to have elected to participate in the legal and investigation expenses
associated with the defense of the rescission.
3. 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 sixty (60)
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 sixty (60) 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 (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
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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.
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
1. 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 and the applicable statutory requirements 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.
2. Ceding Company's Claims Practices Relating to Claims Investigations
It is the Ceding Company's sole decision to determine whether to investigate,
contest, compromise, or litigate a claim; however, the Ceding Company is
responsible for investigating, contesting, compromising or litigating reinsured
policy claims in accordance with applicable law and policy terms.
The Ceding Company acknowledges that it follows industry standards as of the
Effective Date and generally investigates claims with any of the following
criteria:
a. If the claim occurs within the contestable period as defined by the
reinsured policy; or
b. If there is a reasonable question regarding the validity of the
insured's death or the authenticity of the proof(s) of death; or
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c. If the death occurs outside the United States or Canada; or
d. If the insured is missing or presumed dead; or
e. If there is a reasonable suspicion of fraud.
A claim investigation generally includes confirming proof of death, reviewing
medical records to validate the insured's medical disclosures, and, if deemed
appropriate, reviewing the insured's financial condition at the time of
application for coverage. Investigations may also include obtaining police
reports, coroners' reports, financial records, or other information that would
be appropriate under the circumstances.
The Ceding Company acknowledges that its general practice is to defend against a
claim if:
(i) A material omission or misrepresentation of fact is found in the
policy application; or
(ii) Fraud is found that can be proved; or
(iii) There is insufficient proof of death.
3. This Section A shall work in conjunction with Section D of this Article.
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, but in any event, not
later than 12 months after the Ceding Company is advised of the claim.
2. Notwithstanding the foregoing, 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:
a. claims where the loss was incurred during the contestable period and
where the Reinsured Net Amount at Risk on the life exceeds
$ and
b. claims for which either:
(1) the death reportedly occurred outside of the United States or
Canada; or
(2) the body of the insured has not been found -- that is, the
insured is reported missing and presumed dead.
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
XII.A.1. The Ceding Company's failure to notify the Reinsurer of such claims
shall be treated in accordance with Article IX.
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If the Reinsurer discovers that the Ceding Company's claim practices and
procedures in effect at the time of the submission of a claim differ materially
and adversely from those in effect at the Effective Date of this Agreement and
from industry standards at the time of the claim, then, in addition to any other
remedies available to the Reinsurer under this Agreement, the Reinsurer may, by
written amendment to this Agreement as described in Section I.B, seek to adjust
the threshold amount specified above in Paragraph a.
C. Claim Payment
1. Proofs
If a death claim is made under a risk reinsured under this Agreement, the Ceding
Company shall provide the Reinsurer with copies of proof(s) of death of the
insured(s), proof of claim payment, and the claimant's statement (collectively
"Proofs"). Copies of claim files, underwriting files and other documents
relating to a claim payment under this Agreement shall be furnished to the
Reinsurer upon written request.
2. Payment of Reinsurance Proceeds
The Reinsurer shall pay the Ceding Company reinsurance proceeds on claims for
which the Ceding Company is contractually liable under policies eligible for
reinsurance under this Agreement. The due date for such payment is the date
thirty (30) calendar days after the date that the Reinsurer has received the
Proofs.
The Reinsurer shall also reimburse the Ceding Company for its proportionate
share of non-routine claims expenses (defined below in Section G) and any
interest paid by the Ceding Company on such claims, such proportion based on the
Reinsurer's proportionate share of the Total Net Amount at Risk of the coverage,
as defined in Schedule B. Interest paid by the Ceding Company on such claims
shall be in accordance with the policy provisions and applicable state
requirements.
Payment of reinsurance proceeds will be made to the Ceding Company in a single
sum, regardless of the Ceding Company's mode of settlement with the payee under
the policy.
3. Claim Balances in Default
If the Reinsurer is delinquent by more than thirty (30) days on an undisputed
amount due to the Ceding Company relating to a claim:
a. The Ceding Company shall have the right to charge interest on
delinquent amounts in accordance with Section XXII.P;
b. The Ceding Company shall have the right to offset such amount,
including any accrued interest charged by the Ceding Company, from
any amount due the Reinsurer in accordance with Article XVII; and
c. To the extent there is an insufficient balance from which to offset
such amounts, the Ceding Company shall have the right to recapture
the remaining reinsurance under this Agreement, as described in
Article XVI,
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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. 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 six-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 advise the Reinsurer of all significant
developments, including notice of legal proceedings initiated in
connection with the contested claim, at reasonable intervals until
the claim is resolved;
b. The Reinsurer shall pay its proportionate share of any settlement of
the claim, such proportion based on the Reinsurer's proportionate
share of the Total Net Amount at Risk of the coverage, as defined in
Schedule B; and
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 foregoing, if at any point in time, the Reinsurer does
not agree with the Ceding Company's course of action associated with the
Contest, the Reinsurer may opt out of the Contest by paying its full share
of liability as if there had been no Contest, and shall incur no further
expense or obligation to reimburse the Ceding Company with respect to
actions taken after the date the Reinsurer opts out. However, once the
Reinsurer has participated in the Contest, the Reinsurer shall remain
liable for its proportionate share of any Extra-Contractual Obligations
that arise from agreed upon actions taken prior to the date the Reinsurer
opts out. 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. The Reinsurer will not recommend to the Ceding Company to contest a claim.
E. Misstatement of Age or Sex
If the amount of insurance provided by the policy or policies reinsured under
this Agreement is increased or decreased because of misstatement of age or sex
that is established after the death of the insured (or the second death in the
case of a last survivor policy), the Reinsurer will share with the Ceding
Company in this increase or decrease of insurance in proportion to the
Reinsurer's share of the Total Net Amount at Risk, as defined in Schedule B. The
amount will be adjusted from the inception of the policy, and any difference in
amounts due between the Parties under this Agreement will be settled without
interest. The Reinsurer's proportionate share of the increase or decrease will
be equal to its share of the Total Net Amount at Risk, as defined in Schedule B.
F. Return of Premium for Misrepresentations and Suicides
1. If a misrepresentation, misstatement, or omission on an application, or the
death of an insured by suicide, results in the Ceding Company returning the
policy premiums (or monthly deductions) to the policy owner rather than paying
the death benefits under a risk reinsured under this Agreement, the Reinsurer
shall refund to the Ceding Company all of the Reinsurance Premiums it received
on that coverage without interest. This refund paid by the Reinsurer shall be in
lieu of any and all other reinsurance benefits payable on that risk under this
Agreement.
2. In addition, the Reinsurer shall pay its proportionate share of reasonable
third-party investigation and legal expenses connected with the Ceding Company's
decision to return the policy premiums (or monthly deductions) as described
above in 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
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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
This Agreement shall, to the extent permitted by law, indemnify the Ceding
Company for any Extra-Contractual Obligations.
For the purposes of this Agreement, "Extra-Contractual Obligations" shall mean
any punitive, exemplary, compensatory, consequential or other damages paid or
payable by the Ceding Company as a result of an action arising under, relating
to, or in connection with a Contest.
ARTICLE XIV
DAC TAX SECTION 1.848-2(g)(8) ELECTION
The Ceding Company and the Reinsurer jointly agree to the DAC Tax Election
pursuant to Section 1.848-2(g)(8) of the Income Tax Regulations (the "Treasury
Regulations") issued under Section 848 of the Internal Revenue Code of 1986, as
amended (the "Code"). As used in this Article, the terms "net positive
consideration," "specified policy acquisition expenses," and "general deductions
limitation" are defined by reference to Treasury Regulations Section
1.848-2(g)(8) and Code Section 848 as of the Effective Date.
As part of this DAC Tax Election, both Parties agree:
A. That the Party with the net positive consideration for this Agreement for
each taxable year will capitalize specified policy acquisition expenses with
respect to this Agreement without regard to the general deductions limitation of
Code Section 848(c)(1);
B. To exchange information pertaining to the amount of net consideration under
this Agreement each year to ensure consistency; and
C. That the method and timing of the exchange of this information shall be as
follows:
1. The Ceding Company shall submit a schedule to the Reinsurer by May 1 of each
year with its calculation of the net consideration for the preceding calendar
year.
2. If the Reinsurer disagrees with the calculation, 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.
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3. If required by the Treasury Regulations, each Party shall attach the
calculation schedule to its respective U.S. federal income tax return for each
taxable year in which consideration is transferred under this Agreement. The
calculation schedule shall identify this Agreement, and shall restate the
election described in this Article.
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.
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. It is the intention of the
Parties that, unless expressly provided for otherwise in this Agreement, the
Reinsurer:
1. shall be liable only for benefits reinsured as benefits become due under the
terms of the policies reinsured under this Agreement;
2. shall not be liable for any amounts or reserves required to be held by the
Ceding Company for policies reinsured under this Agreement; and
3. shall not be liable for any damages or payments resulting from any
termination or restructure of the policies reinsured under this Agreement.
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.
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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;
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 Reinsurer fails to provide security in accordance with Section
VIII.C;
(2) If the Reinsurer is delinquent on payment of an undisputed net amount due
in accordance with Section XII.C.3; or
(3) If the Reinsurer is deemed insolvent, in accordance with Article XV.
B. In the event of recapture, the Parties shall mutually agree upon the
recapture terms, including the value of the business reinsured to be paid from
one Party to the other upon recapture. If no agreement can be reached, an
independent actuary will be hired to determine the value of the business
reinsured. Costs of the independent actuary will be shared equally by the
Parties.
The value of the business reinsured will be based on appropriate assumptions as
to interest rates, mortality, lapses and other actuarial assumptions. Key
considerations shall include, but not be limited to:
1. Projected future claims costs;
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2. Projected future Reinsurance Premiums;
3. Statutory reserve requirements;
4. 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
5. 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 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 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 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
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resolve the dispute, and that they recommend establishment of arbitration in
accordance with Article XIX.B.
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 where not
contrary to the express terms 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:
A. Expedited Arbitration
The following disputes will be subject to expedited arbitration as set forth in
this Section A:
(1) any dispute arising under Section V.C; or
(2) any dispute in which the amount in controversy, exclusive of interest or
costs, is less than $2 million.
Expedited arbitration proceedings will be held before a single neutral umpire
who is a past or present officer of a life and health insurance or life and
health reinsurance company not affiliated with either of the Parties in any way.
If the Parties cannot agree on an umpire within thirty (30) calendar days
following the demand for expedited arbitration, the selection shall be made
pursuant to the Umpire Selection Procedure of the XXXXX-US Certified Arbitrators
List available at xxx.XXXXX-XX.xxx.
Within twenty-one (21) days following the selection of the umpire, the Parties
and umpire will conduct an organizational meeting by teleconference to
familiarize the umpire with the dispute and to set a timetable for submission of
briefs. There will be no discovery, and the dispute will be decided based on
briefs and documentary evidence only, unless otherwise agreed by the Parties or
ordered by the umpire for good cause. No ex parte communication will be
permitted with the umpire at any time prior to the conclusion of the
proceedings.
Within thirty (30) days after the submission of briefs by the Parties, the
umpire will render 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 umpire, each Party shall
bear the expense of its own arbitration activities and shall jointly and equally
bear the expense of the umpire 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.
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The Parties may mutually agree to extend any of the periods shown in this
Section.
B. Formal Arbitration
All other types of disputes will be decided through formal arbitration as set
forth in this Section B.
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
pursuant to the Umpire Selection Procedure of the XXXXX-US Certified Arbitrators
List available at xxx.XXXXX-XX.xxx.
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
Section.
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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 policies being issued by the Ceding Company:
(1) immediately upon written notice to the other Party, if that other Party
becomes insolvent as described in Article XV; or
(2) with ninety (90) days advance written notice to the other Party.
B. After termination, 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.
C. The Ceding Company shall continue to cede, and the Reinsurer shall continue
to accept, any new business issued prior to the termination of this Agreement.
ARTICLE XXI
CONFIDENTIALITY
During the course of performance under this Agreement, a Party (the "Owner") or
its agent may make available to the other Party (the "Recipient") or its agent
certain technical materials such as manuals, policyholder lists, data files and
the data contained therein, systems, forms, methods, processes and procedures,
and other information or data (collectively, "Proprietary Information") that is
proprietary or trade secret in nature. Proprietary Information shall
specifically exclude information that was previously known to the Recipient or
that is or was publicly disclosed to the Recipient by any party not known by the
Recipient to be under a duty to retain such information as confidential.
Each Party acknowledges that all Proprietary Information is offered for the sole
purpose of performing its obligations under this Agreement. Further, each Party
agrees that the Owner is deemed to be the sole owner of such Proprietary
Information and that any use, furnishing, disclosure, dissemination,
publication, or revealing of Proprietary Information in any way by the Recipient
to any person, organization, firm or government agency contrary to applicable
law or to the terms of this Agreement, shall obligate the Recipient to indemnify
and hold the Owner harmless from any damages, litigation, liability, claimed
liability, claims, and expenses -- including reasonable attorneys' fees and
incidental expenses -- resulting from any such improper use, furnishing,
disclosure, or revealing of Owner's Proprietary Information, whether occurring
during the term of this Agreement or thereafter, except to the extent that any
such loss or damage was caused or contributed to by the Owner. The Ceding
Company acknowledges that the Reinsurer can aggregate the Ceding Company's
Proprietary Information with other companies reinsured with the Reinsurer as
long as the data cannot be identified as belonging to the Ceding Company.
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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 laws and regulations material to this Agreement.
In the event that either Party is found to be noncompliant with any such law or
regulation, this Agreement will remain in effect and the non-compliant Party
will, to the extent practicable, remedy the noncompliance as soon as possible.
In addition, while nothing herein shall limit a Party from seeking additional
remedies for damages resulting from non-compliance with any laws or regulations
material to the business reinsured under this Agreement, if a Party is found to
be noncompliant with a Material Law, the non-compliant Party shall indemnify the
other Party for any direct loss that Party suffers as a result of the
noncompliance.
For purposes of this Agreement, "Material Laws" shall mean those laws and
regulations that impose mandatory compliance requirements. It shall not mean
those laws or regulations that set forth standards or requirements for obtaining
a particular legal, tax or accounting treatment, which may be elected or sought
by a Party, but which are not mandatory.
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 intended
the Reinsurer to rely on the same, as well as the Reinsurer's expertise,
knowledge, and experience in the life insurance and life reinsurance industries,
in its decision to enter into this Agreement.
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The Ceding Company represents to the Reinsurer that, as of the date it executed
this Agreement, it was not aware of any errors in the Request for Proposal and
that the Request for Proposal at the time it was provided to the Reinsurer was
complete in all material respects.
In addition, the Parties agree that the principles of good faith traditional to
life reinsurance shall be adhered to in the performance of this Agreement, in
the underwriting and administration of the business reinsured hereunder, and in
their dealing with each other. Pursuant to such principles, the Ceding Company
will inform the Reinsurer in writing of any material change in its underwriting,
administration, or claims practices for the Reinsurer's consideration and
written approval.
If the Reinsurer does not consent to any such changes, the Reinsurer reserves
the right to decline reinsurance coverage on such policies and/or negotiate a
corresponding adjustment of the reinsurance terms and conditions for the risks
reinsured hereunder.
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
Either Party or its duly authorized Representative may, upon reasonable notice
and at a time and place mutually convenient to both Parties, inspect and audit
the books and records of the other Party that relate to the terms and conditions
of this Agreement and the business that is the subject matter of this Agreement.
Such inspection rights shall not include any information related to: (i) either
Party's pricing or Reinsurer's offer to reinsure; (ii) other transactions
entered into by either Party; (iii) analysis of the Agreement developed by
either Party for internal purposes; (iv) either Party's investment strategy or
hedging programs; or (v) privileged information of either Party. however, if
either Party deems any of the information to be reviewed to be Proprietary
Information, such information may be reviewed by the requesting Party provided
(a) such information or data is material to the review; (b) a Representative of
the Party providing said information is present at all times during such review;
(c) no copies are made of such information; and (d) no notes are made using or
based on such Information.
The above notwithstanding, if the inspection/audit is in response to a
regulatory inquiry which requires access to Proprietary Information, the Owner
of the Proprietary Information will provide such response directly to the
regulator, within the timeframe set forth in the inquiry, with a copy of the
response to the other Party. However, if the inquiry and/or response requires
that copies of the actual Proprietary Information be provided, the Owner of the
Proprietary Information will provide such copies directly to the requesting
regulator without copies to the other Party.
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
37
P. Short-Term Interest
For some payments under this Agreement that are due from one Party to the other
Party, the Party owed has the right to charge the other Party interest on those
payments. If that right is exercised, such interest will be computed, from the
date the payment is due to the date payment is made, using the short-term
interest method.
Interest under the short-term interest method will accrue at an effective annual
rate set equal to the lesser of (i) a rate equal to the sum of 50 basis points
(0.50%) plus the annualized Three Month London Interbank Offering Rate (LIBOR)
published in the Wall Street Journal (or, if not available, a comparable
publication agreed upon by the Parties) on the due date of the payment, if the
due date is a business day, or if not, on the first business day following the
due date, or (ii) the maximum annual rate allowed by law for this purpose in the
governing-law state specified above in Section G.
The effective annual interest rate to be used under the short-term interest
method for a payment due will be reset every three months after such due date,
as necessary, if the payment accrues interest for a period longer than three
months. If multiple payments are accruing interest under one computation, then
the rate will be reset every three months after the due date of the earliest
such payment, and the reset rate for each successive period shall apply to
accrue interest on all such payments accrued during such period.
ARTICLE XXIII
NOTICES AND COMMUNICATIONS
A. Material Communications
For the purpose of this Agreement, "Material Communications" shall be defined as
those communications associated with material breach of this Agreement,
termination or recapture of this Agreement, demand for arbitration or dispute
resolution 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 Head of Client Markets
Reinsurance
Hartford Life Insurance Company Swiss Re Life & Health America Inc.
000 Xxxxxxxxx Xxxxxx 000 Xxxx Xxxxxx
Xxxxxxxx, XX 00000 Xxxxxx, XX 00000
Facsimile: (000) 000-0000
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
38
Copies (which shall not constitute Copies (which shall not constitute
notice) to: notice) to:
Corporate Reinsurance Risk Mgt. Actuarial Department
Hartford Life Insurance Company Swiss Re Life & Health America Inc.
000 Xxxxxxxxx Xxxxxx 0000 Xxxxxxxx Xxx
Xxxxxxxx, XX 00000 Xxxx Xxxxx, XX 00000
Facsimile: (000) 000-0000
Reinsurance Counsel Senior Legal Counsel
Hartford Life Insurance Company Swiss Re Life & Health America Inc.
000 Xxxxxxxxx Xxxxxx 000 Xxxx Xxxxxx
Xxxxxxxx, XX 00000 Xxxxxx, XX 00000
Facsimile: (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 below in 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.
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.
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
39
EXECUTION
In witness whereof, the Parties, by their duly authorized representatives, have
executed this Agreement in duplicate:
SWISS RE LIFE & HEALTH AMERICA INC.
By: /s/ [ILLEGIBLE] Attest: /s/ Xxxxxx Xxxx
----------------------------- -----------------------------
Name: [ILLEGIBLE] Name: Xxxxxx Xxxx
Title: Vice President Title: Vice President
Date: 12-22-09 Date: 12-22-09
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxxxxx X. Xxxxxxxxx
----------------------------- -----------------------------
Xxxxxx X. Xxxxxxxx, FSA, XXXX Xxxxxxx X. Xxxxxxxxx, FSA,
MAAA
Vice President Assistant Vice President and
Actuary
Date: 12-23-2009 Date: 12-24-2009
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
40
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
SINGLE LIFE PLANS OF INSURANCE
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE*
-----------------------------------------------------------------------------------------
Stag UL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Bicentennial UL Founders 2001 CSO M/F S/NS Ultimate ANB A
Hartford UL CV 1980 CSO M/F S/NS Ultimate ALB A
Stag Wall Street VUL 1980 CSO M/F S/NS Ultimate ALB A
Stag Protector II VUL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Leaders VUL Legacy 2001 CSO M/F Composite Ultimate ANB A
Stag Accumulator II VUL 1980 CSO M/F Unismoke Ultimate ALB A
Hartford Leaders VUL Liberty (a) 1980 CSO M/F Unismoke Ultimate ANB A
Hartford Leaders VUL Liberty (b) 2001 CSO M/F Composite Ultimate ANB A
Life Solutions II UL (a) 1980 CSO M/F S/NS Ultimate ALB A
Life Solutions II UL (b) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Advanced Universal Life 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Freedom 2001 CSO M/F S/NS Ultimate ANB B
Hartford Quantum II VUL (a) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Quantum II VUL (b) 2001 CSO M/F S/NS Ultimate ANB A
Hartford ExtraOrdinary Whole Life 2001 CSO M/F S/NS Ultimate ALB A
(a)
Hartford ExtraOrdinary Whole Life 2001 CSO M/F S/NS Ultimate ANB A
(b)
RIDERS PROVIDING DEATH BENEFITS THAT ARE RIDERS THAT PROVIDE ADDITIONAL BENEFITS
ELIGIBLE FOR REINSURANCE: BUT THAT ARE NOT ELIGIBLE FOR REINSURANCE:
Accidental Death Benefit (ADB) Rider
Primary Insured Term Rider Accelerated Benefit Rider (ABR)
Other Covered Insured Term Life Rider LifeAccess Accelerated Ben. Rider (LAABR)
Cost of Living Adjustment (COLA) Rider Policy Continuation Rider
Policy Protection Rider (PPR)
Enhanced No Lapse Guarantee Rider
NOTE: NAR Type for term riders above is C. Lifetime No Lapse Guarantee Rider
For COLA Rider, NAR Type follows Guar. Min. Accum. Benefit (GMAB) Rider
Base Policy to which it is attached. Paid-Up Life Insurance Rider
Conversion Option Rider
Overloan Protection Rider
*NAR Type is described in Schedule B. Waiver of Specified Amount (WSA) Rider
Waiver of Monthly Deductions (WMD) Rider
Children's Life Insurance Rider
Foreign Travel Exclusion Rider
Estate Tax Repeal Benefit Rider
Modified Surrender Value Rider
Cash Surrender Value Endorsement
Automatic Premium Payment Rider
Additional Premium Rider
Qualified Plan Rider
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
41
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Primary Insured Term Rider: Provides additional level term life coverage on the
base policy insured.
Other Covered Insured Term Life Rider: Provides level term life coverage on an
insured other than the base policy insured.
Cost of Living Adjustment (COLA) Rider: Provides for biennial face amount
increases, without underwriting, based on increases in the Consumer Price Index.
The maximum amount of any single increase is $50,000. Any increase can be
declined by the policyholder, which stops future increases. Available only at
issue and only for non-substandard issue ages 0 through 60.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Accidental Death Benefit Rider: Pays an additional death benefit if the death on
the insured is caused by a qualifying accident.
Accelerated Benefit Rider: Provides the policyholder up to 100% of the death
benefit, discounted with interest, if the insured's life expectancy is 12 months
or less. After acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
LifeAccess Accelerated Benefit Rider (LAABR): Provides for monthly benefits (up
to 2% of death benefit) if insured meets certain ADL and home-care requirements.
During and after acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
Policy Continuation Rider: Intended to prevent the lapse of highly loaned
policies.
Policy Protection Rider: Protects the death benefit of the base policy and any
primary insured term rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Enhanced No Lapse Guarantee Rider: Provides that the policy will not lapse as
long as cumulative premiums paid less indebtedness and less withdrawals are
greater than or equal to the cumulative no lapse guarantee premiums. Length of
guarantee varies by issue age.
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
42
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
Lifetime No Lapse Guarantee Rider: Same as Enhanced No Lapse Guarantee Rider but
with lifetime guarantee.
Guaranteed Minimum Accumulation Benefit (GMAB) Rider: Provides, at the end of
the GMAB Guarantee Period (usually 20 years), that the policy Account Value will
be increased, if necessary, to equal the sum of gross premiums paid to that
date. There is a small monthly charge and a minimum cumulative premium
requirement to keep the rider in force.
Paid-Up Life Insurance Rider: Similar to the GMAB rider, with the same Guarantee
Period, a monthly charge, and a cumulative premium requirement. At end of the
Guarantee Period, the owner may elect to change coverage to paid-up life using
the Account Value as a 5% NSP to determine the amount of coverage; however, the
amount of coverage will never be lower than the sum of gross premiums paid to
that date. Once elected, premiums are no longer payable.
Conversion Option Rider: During certain policy years and prior to the insured's
attained age 70, the policy may be converted, without evidence of insurability,
to any permanent plan of life insurance the Ceding Company then makes available
for conversions of this policy.
Overloan Protection Rider: Protects a policy from terminating due to overloan.
Waiver of Specified Amount (WSA) Rider: Waives a specified amount monthly while
the insured is disabled.
Waiver of Monthly Deductions (WMD) Rider: Waives monthly deduction amounts while
the insured is disabled.
Children's Life Insurance Rider: Provides level term life coverage for each
child of the insured.
Foreign Travel Exclusion Rider: Provides a limited death benefit (Account Value
less indebtedness) if the insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
Estate Tax Repeal Benefit Rider: Pays the policy Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Modified Surrender Value Rider: Changes the Cash Surrender Value definition (to
equal the Account Value) if the policy is surrendered within 3 years after the
policy issue date.
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 -- Effective 10/1/2008
Between XXX and Swiss Re
43
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
Hartford, and describes features and activities that are unavailable when the
policy is owned by a Qualified Plan.
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
44
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
LAST SURVIVOR PLANS OF INSURANCE
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE*
----------------------------------------------------------------------------------------------
Hartford Leaders VUL Joint Legacy 2001 CSO M/F S/NS Select & Ultimate ALB A
Hartford Leaders VUL Joint Legacy 2001 CSO M/F S/NS Select & Ultimate ANB A
II
Hartford Advanced Last Survivor UL 2001 CSO M/F S/NS Select & Ultimate ALB B
Hartford Bicentennial UL Joint 2001 CSO M/F S/NS Select & Ultimate ALB B
Freedom
Hartford Bicentennial UL Joint 2001 CSO M/F S/NS Select & Ultimate ANB B
Freedom II
------------
* NAR Type is described in Schedule B.
RIDERS PROVIDING DEATH BENEFITS THAT RIDERS THAT PROVIDE ADDITIONAL
ARE BENEFITS
ELIGIBLE FOR REINSURANCE BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Estate Protection Rider (NAR Type is LS Exchange Option Rider
C)
Policy Protection Rider
Estate Tax Repeal Rider
Foreign Travel Exclusion Rider
Guar. Min. Accum. Benefit (GMAB)
Rider
Paid-Up Life Insurance Rider
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Estate Protection Rider: This rider provides last survivor level term life
insurance on the base policy insureds for three years.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
LS Exchange Option Rider: Allows a Last Survivor policy to be split into two
Single Life policies, without new evidence of insurability, if divorce, business
dissolution, or estate-tax repeal or reduction occurs. The face amount of each
new Single Life policy will equal one half of the Last Survivor policy face
amount. Upon a split, reinsurance will continue at point-in-scale rates for each
single life, as documented in Section X.C. (This rider is not available when one
of the insureds is uninsurable or above Table H.)
Policy Protection Rider: Protects the death benefit of the base policy and any
Estate Protection Rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
45
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
Estate Tax Repeal Rider: This rider will pay the Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Foreign Travel Exclusion: Provides a limited death benefit (Account Value less
indebtedness) if either insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
GMAB Rider and Paid-Up Life Insurance Rider: Same as Single Life riders.
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
46
SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
AUTOMATIC REINSURANCE: The Ceding Company shall retain its available retention
on each risk, defined below as the Retained Net Amount at Risk, subject to the
applicable Ceding Company's Treaty Retention Limit shown in Exhibit II.
The Reinsurer will automatically reinsure a portion of the remainder of the
risk, called the Reinsured Net Amount at Risk, as defined below in this Schedule
B.
FACULTATIVE REINSURANCE: The Reinsurer will reinsure X% (as determined at issue)
of the Total Net Amount at Risk for the risk.
TOTAL ALLOCATION LIMIT (TAL): As shown in Exhibit II.
CEDING COMPANY'S TREATY RETENTION LIMIT (CCTRL): As shown in Exhibit II.
CEDING COMPANY'S ALLOCATED RETENTION (CCAR): As shown in Exhibit II.
CURRENT RETENTION (CURRRET) = Current amount of life insurance retained by the
Ceding Company and its affiliated companies on the life for in-force life
insurance coverage. (For Last Survivor risks, see the Last Survivor Limits and
Retention Worksheet in Exhibit II.)
REINSURER'S ALLOCATED RETENTION (REINSARET): As shown in Exhibit II.
REINSURER'S ATTACHMENT POINT (REINSAPT): As shown in Exhibit II.
NAR TYPE for the Plan of Insurance to be reinsured under this Agreement, as
shown in Schedule A.
STEP 1 -- DETERMINE TOTAL NET AMOUNT AT RISK FOR THE COVERAGE
TOTAL NET AMOUNT AT RISK (TOTNAR) =
For NAR TYPE A, Death Benefit minus the Account Value.
For NAR TYPE B, Death Benefit minus the Working Reserve, where
Working Reserve = (i) x (ii) / (iii), and
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
47
SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
For NAR TYPE C, Death Benefit.
STEP 2 -- DETERMINE NET AMOUNT AT RISK FOR EACH "LAYER" OF COVERAGE
STEP 3 -- DETERMINE THE NAR FOR THE CEDING COMPANY AND THEN FOR THE REINSURER
MINIMUM REINSURANCE CESSION: AUTOMATIC:
[Redacted] FACULTATIVE: [Redacted]
LEAD REINSURER: Swiss Re Life & Health America Inc.
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
48
ISS YRT REINSURANCE PREMIUM TABLE RATES PER 1,000
AGE DUR:1 2 3 4 5
------------------------------------------------------------------------------
0 0.20700 0.20700 0.18800 0.16900 0.15000
ISS AGE LAST BIRTHDAY BASIS
AGE 6 7 8 9 10
-------- --------------------------------------------------------------------
0 0.13800 0.12500 0.11300 0.11900 0.11900
ISS FEMALE PREFERRED PLUS NON-NICOTINE
AGE 11 12 13 14 15
------------------------------------------------------------------------------
0 0.13200 0.14400 0.16300 0.18100 0.21300
ISS
AGE 16 17 18 19 20
-------- ------------------------------------------------
0 0.23800 0.29200 0.31900 0.33300 0.34700
ISS
AGE 21 22 23 24 25
----------------------------------------------------------
0 0.36100 0.33300 0.33300 0.33300 0.33300
ISS UIT
AGE 26 27 28 29 30 AGE
-------- ---------------------------------------------------------------
0 0.33300 0.33300 0.33300 0.33800 0.34500 29
ARP TREATY EFFECTIVE 10/1/08 HARTFORD LIFE CONFIDENTIAL
EXHIBIT III
1
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, as 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 only and must be billed to a
residence or bank in the U.S.
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
49
SCHEDULE C
FOREIGN NATIONAL UNDERWRITING PROGRAM
FOR SINGLE LIFE PERMANENT POLICIES ONLY; NOT AVAILABLE FOR LAST SURVIVOR
POLICIES
EFFECTIVE OCTOBER 1, 2008
ADDITIONAL UNDERWRITING AND RISK CLASS GUIDELINES
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
50
SCHEDULE C
FOREIGN NATIONAL UNDERWRITING PROGRAM
FOR SINGLE LIFE PERMANENT POLICIES ONLY; NOT AVAILABLE FOR LAST SURVIVOR
POLICIES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
51
SCHEDULE D
OTHER SPECIAL UNDERWRITING PROGRAMS
EFFECTIVE OCTOBER 1, 2008
The Ceding Company has several special underwriting programs. The majority of
these programs are contained within the Underwriting Brochure entitled "Life
insurance underwriting that opens doors and closes cases", form LCM-05-418-1-09.
Another program, Life Express, effective October 26, 2009, is documented in a
LifeTIMES Bulletin dated October 30, 2009. Both of these publications have been
shared in advance of the execution of this Agreement with the Reinsurer. The
Ceding Company has two additional special underwriting programs not listed in
the Underwriting Brochure, the "Xxxxx Program" and the "Director's Charitable
Award Program", which are listed below.
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
52
SCHEDULE D
SPECIAL UNDERWRITING PROGRAMS
EFFECTIVE OCTOBER 1, 2008
DIRECTOR'S CHARITABLE AWARD PROGRAM (DCAP) -- FOR LAST SURVIVOR PLANS ONLY
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
53
SCHEDULE D
SPECIAL UNDERWRITING PROGRAMS
EFFECTIVE OCTOBER 1, 2008
DIRECTOR'S CHARITABLE AWARD PROGRAM (DCAP) -- CONTINUED
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
54
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
What follows is a summary of the Ceding Company's underwriting practices and
guidelines as of the Effective Date of this Agreement. The Ceding Company's
actual underwriting practices and guidelines are documented in its InfoBase data
system. To the extent that any information contained in this Schedule differs
from the practices and guidelines documented in InfoBase, InfoBase will govern.
UNDERWRITING PRACTICES
OVERALL UNDERWRITING PHILOSOPHY
It is the goal of our underwriting department to provide the best offer as
accurately and as quickly as we can, balancing the needs of all our stakeholders
-- producers, stockholders, reinsurers, policy owners, state insurance
departments, employees, etc. It is essential that we maintain a sense of
fairness with our company and our stakeholders, in terms of profitability and
mortality expectations.
UNDERWRITING REQUIREMENTS
[Redacted]
AGING OF UNDERWRITING REQUIREMENTS
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
55
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
56
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
57
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
58
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
UNDERWRITING REQUIREMENTS -- STANDARD PERMANENT PLANS
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
59
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
60
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
UNDERWRITING REQUIREMENTS -- STAG WALL STREET VUL
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
61
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 -- Effective 10/1/2008
Between XXX and Swiss Re
62
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 -- Effective 10/1/2008
Between XXX and Swiss Re
63
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 -- Effective 10/1/2008
Between XXX and Swiss Re
64
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
PREFERRED CLASSES -- ADDITIONAL UNDERWRITING REQUIREMENTS
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
65
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
PREFERRED CLASSES -- ADDITIONAL UNDERWRITING REQUIREMENTS (CONT'D)
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
66
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
67
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
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68
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
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69
SCHEDULE F
POLICIES ELIGIBLE FOR REINSURANCE UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
The following categories of policies are eligible for reinsurance under this
Agreement:
CATEGORY # CATEGORY DESCRIPTION
----------------------------------------------------------------------------------------------------------------------
1 Policies issues on or after March 1, 2009
2 Policies issued from the Effective Date of this Agreement through February 28,
2009 that were eligible for automatic reinsurance under one of the following
Ceding Company reinsurance pools:
i. Single Life Excess Pool effective November 1, 2002
ii. Advanced UL Pool effective September 1, 2004;
iii. Last Survivor Excess Pool effective January 1, 2002; and
iv. Advanced Last Survivor UL Pool effective January 1, 2005,
but that were fully retained by the Ceding Company at the time of processing (see Note below).
Notwithstanding the foregoing, fully retained policies issued during this period in which the insured
has a subsequent policy that is partially or fully ceded to another pool (including the Hartford Term
Pool effective April 10, 2006) will not be eligible for reinsurance under this Agreement:
NOTE:
The Ceding Company completed the processing of Category 2 business in July 2009.
At the time of processing, the Ceding Company paid the Reinsurer Reinsurance
Premiums for all policies in Category 2 back to each policy's issue date.
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70
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 [ 1-(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 Allowance
Percentages 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.
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71
EXHIBIT I
REINSURANCE PREMIUM CALCULATION
EFFECTIVE OCTOBER 1, 2008
FOR SINGLE LIFE PLANS OF INSURANCE
ANNUAL FLAT EXTRA REINSURANCE PREMIUM
The Annual Flat Extra Reinsurance Premium for each coverage equals {(i) x [ 1 --
(ii) ] x [(iii) / 1,000]}, where:
(i) equals the applicable annual flat extra rate per 1,000, for the year of
coverage, that the Ceding Company charges for the coverage;
(ii) equals the Flat Extra Allowance Percentage, specified below; and
(iii) equals the Reinsured Net Amount At Risk for such coverage, defined in
Schedule B.
FLAT EXTRA ALLOWANCE PERCENTAGE
[Redacted]
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72
EXHIBIT I
REINSURANCE PREMIUM CALCULATION
EFFECTIVE OCTOBER 1, 2008
FOR LAST SURVIVOR PLANS OF INSURANCE
REINSURANCE PREMIUM
Reinsurance Premium shall be calculated each month for each risk reinsured as
[(i) x (ii) / 1,000] / 12, where:
(i) equals the result of the following steps:
(ii) equals the Reinsured Net Amount at Risk for the coverage, defined in
Schedule B.
For the purposes of calculating Reinsurance Premium, the following will be
considered separate coverages: base policy, increases in coverage, and reinsured
riders. Reinsurance Premium for a single life rider attached to a last survivor
policy shall be determined in accordance with the Reinsurance Premium
calculations for single life plans of insurance.
YRT REINSURANCE PREMIUM RATE PER 1,000*
The YRT Reinsurance Premium Rate per 1,000 for each life, for each coverage
shall equal (i) x (ii) + (iii), but in no event more than 1,000, where:
(i) equals the YRT Reinsurance Premium Rate per 1,000, which equals the
quantity {(a) x [ 1 -- (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 Allowance
Percentages to be Applied to the Annual Rates per $1,000 of Reinsured
Net Amount at Risk specified in Exhibit IV;
(ii) equals the applicable Substandard Table Percentage, specified in Exhibit
V, for the risk; and
(iii) equals the Annual Flat Extra Reinsurance Premium per 1,000, as defined
below.
* For purposes of determining the YRT Reinsurance Premium Rate per 1,000, a
life deemed uninsurable will be treated as Table P with a $250 flat extra
for 10 years.
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73
EXHIBIT I
REINSURANCE PREMIUM CALCULATION
EFFECTIVE OCTOBER 1, 2008
FOR LAST SURVIVOR PLANS OF INSURANCE
ANNUAL FLAT EXTRA REINSURANCE PREMIUM PER 1,000
The Annual Flat Extra Reinsurance Premium per 1,000 for each coverage equals
{(i) x [ 1-(ii)]}, where:
(i) equals the applicable annual flat extra rate per 1,000, for the year of
coverage, that the Ceding Company charges for the coverage; and
(ii) equals the Flat Extra Allowance Percentage, specified below.
FLAT EXTRA ALLOWANCE PERCENTAGE
[Redacted]
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74
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]
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75
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
E)
[Redacted]
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76
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]
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77
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]
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78
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 included in the
Excel file titled "Master File -- Guaranteed Rates.xls" sent from Xxxxxxx
Xxxxxxxxx at the Ceding Company to Xxxxxxx Xxxxxx at the Reinsurer on October
30, 2009 at 5:45 P.M. 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. Non-Nicotine;
b. Nicotine;
All risks insured by the Ceding Company on a Unisex basis will be reinsured
using gender-specific rates.
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79
POLICY YEAR
MALE PREF PLUS NON NIC ISSUE AGE
--------------------------------------------------
Male Pref + NN 0
Male Pref + NN 1
Male Pref + NN 2
Male Pref + NN 3
Male Pref + NN 4
Male Pref + NN 5
Male Pref + NN 6
Male Pref + NN 7
Male Pref + NN 8
Male Pref + NN 9
Male Pref + NN 10
Male Pref + NN 11
Male Pref + NN 12
Male Pref + NN 13
Male Pref + NN 14
Male Pref + NN 15
Male Pref + NN 16
Male Pref + NN 17
Male Pref + NN 18
Male Pref + NN 19
Male Pref + NN 20
Male Pref + NN 21
Male Pref + NN 22
Male Pref + NN 23
Male Pref + NN 24
Male Pref + NN 25
Male Pref + NN 26
Male Pref + NN 27
Male Pref + NN 28
Male Pref + NN 29
Male Pref + NN 30
Male Pref + NN 31
Male Pref + NN 32
Male Pref + NN 33
Male Pref + NN 34
Male Pref + NN 35
Male Pref + NN 36
Male Pref + NN 37
Male Pref + NN 38
Male Pref + NN 39
Male Pref + NN 40
Male Pref + NN 41
Male Pref + NN 42
Male Pref + NN 43
Male Pref + NN 44
Male Pref + NN 45
Male Pref + NN 46
Male Pref + NN 47
Male Pref + NN 48
Male Pref + NN 49
Male Pref + NN 50
Male Pref + NN 51
Male Pref + NN 52
Male Pref + NN 53
Male Pref + NN 54
Male Pref + NN 55
Male Pref + NN 56
Male Pref + NN 57
Male Pref + NN 58
Male Pref + NN 59
Male Pref + NN 60
Male Pref + NN 61
Male Pref + NN 62
Male Pref + NN 63
Male Pref + NN 64
Male Pref + NN 65
Male Pref + NN 66
Male Pref + NN 67
Male Pref + NN 68
Male Pref + NN 69
Male Pref + NN 70
Male Pref + NN 71
Male Pref + NN 72
Male Pref + NN 73
Male Pref + NN 74
Male Pref + NN 75
Male Pref + NN 76
Male Pref + NN 77
Male Pref + NN 78
Male Pref + NN 79
Male Pref + NN 80
Male Pref + NN 81
Male Pref + NN 82
Male Pref + NN 83
Male Pref + NN 84
Male Pref + NN 85
Male Pref + NN 86
Male Pref + NN 87
Male Pref + NN 88
Male Pref + NN 89
Male Pref + NN 90
Male Pref + NN 91
MALE PREFERRED NON NIC ISSUE AGE
--------------------------------------------------
Male Pref NN 0
EXHIBIT V
SUBSTANDARD TABLE PERCENTAGES
EFFECTIVE OCTOBER 1, 2008
SUBSTANDARD TABLE PERCENTAGES (SEE EXHIBIT I FOR USAGE)
[Redacted]
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81
EXHIBIT VI
CONDITIONAL RECEIPT OR TEMPORARY INSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
[LOGO] HARTFORD LIFE INSURANCE COMPANY
THE HARTFORD HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
000 XXXXXXXXXX XXXXX, XXXXXXXX, XX 00000
P.O. BOX 64271, ST. XXXX, MN 55164-0271
TEMPORARY INSURANCE AGREEMENT
PROPOSED PRIMARY INSURED: NAME: DATE OF BIRTH:
Under this Temporary Insurance Agreement ("Agreement"), Hartford Life Insurance
Company or Hartford Life and Annuity Insurance Company ("Company") agrees to
provide a limited amount of life insurance coverage, for a limited period of
time, subject to the terms and conditions set forth below.
WHEN COVERAGE BEGINS
Temporary life insurance coverage under the Agreement becomes effective on the
date this Agreement is signed, subject to all of the following conditions:
a) An Application for Life Insurance with the Company ("Application") or a
Request for Insurance Application with the Company ("Request") has been
completed as of the same date this Agreement has been signed;
b) The answers to the health questions below are "No"; and
c) The Company receives the first full modal premium for the mode selected on
the Application or the Request.
WHEN TEMPORARY INSURANCE COVERAGE TERMINATES -- 90 DAY MAXIMUM
Temporary insurance under this Agreement will terminate on the earliest of:
1. 30 days from the effective date of this Agreement if a required and
requested medical exam, lab test, application interview or medical report has
not been received by the Company;
2. 90 days from the effective date of this Agreement;
3. The date the policy, as applied for, takes effect;
4. The date the Company offers a policy with a risk assessment other than
Standard or a Preferred Class;
5. The date the Company mails a notice of termination of this Agreement to the
Proposed Policyowner at the address set forth in the Application or Request.
If the Company terminates coverage, the collected premium will be refunded
without interest.
WHO IS COVERED
This Agreement provides temporary insurance coverage only for the Primary
Insured. The Primary Insured is the "Proposed Insured" named in the Request, the
"Proposed Insured 1" named in the Application, or "Proposed Insured 1" and
"Proposed Insured 2" named in Applications for survivorship life insurance
coverage. THIS AGREEMENT DOES NOT PROVIDE INSURANCE COVERAGE FOR ANY OTHER
PROPOSED INSUREDS, INCLUDING BUT NOT LIMITED TO, OTHER PROPOSED INSUREDS UNDER
TERM INSURANCE RIDERS AND CHILD RIDERS.
AMOUNT OF LIFE INSURANCE COVERAGE -- $1,000,000 MAXIMUM
If death of a covered Primary Insured occurs while this Agreement is in effect,
the Company will pay a death benefit to the beneficiary designated in the
Application or Request.
The death benefit shall be the LESSER of:
a) The amount of death benefit indicated in the Application or Request, with
respect to the deceased Primary Insured; or
b) $1,000,000.
LIMITATIONS AND CONDITIONS OF COVERAGE
1. If benefits are payable under this Agreement, then no benefit relating to
that loss will be payable under the policy which is applied for.
2. Material misrepresentations or fraud in the answers to the Health Questions
set forth below or in the Application will invalidate this Agreement and the
Company's liability will be limited to a refund of the premium payment.
3. This Agreement does not cover any Primary Insured who is age 71 or over as
of the effective date of this Agreement.
DETACH OWNER'S COPY AT TIME OF APPLICATION
HOME OFFICE COPY
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82
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
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83
EXHIBIT VI
CONDITIONAL RECEIPT OR TEMPORARY INSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
[LOGO] HARTFORD LIFE INSURANCE COMPANY
THE HARTFORD HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
000 XXXXXXXXXX XXXXX, XXXXXXXX, XX 00000
P.O. BOX 64271, ST. XXXX, MN 55164-0271
TEMPORARY INSURANCE AGREEMENT
PROPOSED PRIMARY INSURED: NAME: DATE OF BIRTH:
Under this Temporary Insurance Agreement ("Agreement") Hartford Life Insurance
Company or Hartford Life and Annuity Insurance Company ("Company") agrees to
provide a limited amount of life insurance coverage, for a limited period of
time, subject to the terms and conditions set forth below.
WHEN COVERAGE BEGINS
Temporary life insurance coverage under the Agreement becomes effective on the
date this Agreement is signed, subject to all of the following conditions:
a) An Application for Life Insurance with the Company ("Application") or a
Request for Insurance Application with the Company ("Request") has been
completed as of the same date this Agreement has been signed;
b) The answers to the health questions below are "No"; and
c) The Company receives the first full modal premium for the mode selected on
the Application or the Request.
WHEN TEMPORARY INSURANCE COVERAGE TERMINATES -- 90 DAY MAXIMUM
Temporary insurance under this Agreement will terminate on the earliest of:
1. 30 days from the effective date of this Agreement if a required and
requested medical exam, lab test, application interview or medical report has
not been received by the Company;
2. 90 days from the effective date of this Agreement;
3. The date the policy, as applied for, takes effect;
4. The date the Company offers a policy with a risk assessment other than
Standard or a Preferred Class;
5. The date the Company mails a notice of termination of this Agreement to the
Proposed Policyowner at the address set forth in the Application or Request.
If the Company terminates coverage, the collected premium will be refunded
without interest.
WHO IS COVERED
This Agreement provides temporary insurance coverage only for the Primary
Insured. The Primary Insured is the "Proposed Insured" named in the Request, the
"Proposed Insured 1" named in the Application, or "Proposed Insured 1" and
"Proposed Insured 2" named in Applications for survivorship life insurance
coverage. THIS AGREEMENT DOES NOT PROVIDE INSURANCE COVERAGE FOR ANY OTHER
PROPOSED INSUREDS, INCLUDING BUT NOT LIMITED TO, OTHER PROPOSED INSUREDS UNDER
TERM INSURANCE RIDERS AND CHILD RIDERS.
AMOUNT OF LIFE INSURANCE COVERAGE -- $1,000,000 MAXIMUM
If death of a covered Primary Insured occurs while this Agreement is in effect,
the Company will pay a death benefit to the beneficiary designated in the
Application or Request.
The death benefit shall be the LESSER of:
a) The amount of death benefit indicated in the Application or Request, with
respect to the deceased Primary Insured; or
b) $1,000,000.
LIMITATIONS AND CONDITIONS OF COVERAGE
1. If benefits are payable under this Agreement, then no benefit relating to
that loss will be payable under the policy which is applied for.
2. Material misrepresentations or fraud in the answers to the Health Questions
set forth below or in the Application will invalidate this Agreement and the
Company's liability will be limited to a refund of the premium payment.
3. This Agreement does not cover any Primary Insured who is age 71 or over as
of the effective date of this Agreement.
OWNER'S COPY
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84
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
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85
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
REPORT ACCOUNTING PERIOD DUE DATE
----------------------------------------------------------------------------------------------------------
1. New Business* Monthly 30th day after month end
(New issues only -- first time
policy reported to the Reinsurer)
2. Renewal Business* Monthly 30th day after month end
(Policies with renewal dates
within the Accounting Period)
3. Changes & Terminations* Monthly 30th day after month end
(includes conversions, replacements
reinstatements, increases, decreases,
recaptures, lapses, claims, etc.)
4. Inforce List Monthly 30th day after month end
(Listing of each policy in force)
5. Statutory Reserves Quarterly 30th day after quarter end
6. Policy Exhibit Monthly 30th day after month end
------------
* Policy record details for new business, renewal business, and changes and
terminations (Reports 1, 2, and 3 above) may be reported as separate reports
or combined into one report, provided, the required data elements continue
to be satisfied.
REPORTING SYSTEM:
The system used by the Ceding Company to administer its reinsurance is: XXX.
NOTE:
Certain policy transactions, such as increases, are coded in the policy
administration system as riders, although they do not correspond to filed rider
forms.
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86
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
MINIMUM DATA REQUIREMENTS
INFORCE AND TRANSACTION FILE
Company Identifies the Ceding Company
Policy Policy number which is part of the policy key
Coverage/rider Coverage number which is part of the policy key. This
number is used to identify specific policy coverage.
Cession ID This field contains the number assigned to this
cession by the Reinsurer
Transaction Sequence This field indicates the transaction record(s)
created during the month.
Line of Business This field indicates the line of business the policy
falls under.
Reinsurance Company Two character reinsurance company ID code that
identifies the Reinsurer.
Reporting Company Identifies the company used for reporting purposes.
Will be the same as the Reinsurance Company.
Transaction Type Identifies the type of transaction being reported on
the Transaction extract.
Transaction Count This field is used on the Transaction extract to
identify the addition or termination of a cession.
Reinsurance From Date This field contains the beginning date of the period
covered by this record. The premiums on the
Transaction record cover the period beginning with
the From Date through the To Date.
Reinsurance To Date This field contains the end date of the period
covered by a record.
Date Reported On the Transaction extract, this is the month the
transaction was reported.
Mode Identifies the mode of reinsurance premium payment.
Policy Duration The duration at issue is 01.
Reinsurance Duration Contains the reinsurance duration. It may differ from
the policy duration if the cession is a continuation.
Cession Number Hartford does not currently use. Defaults to spaces.
Policy Date This field contains the issue date of the policy.
Reinsurance Date This field contains the issue date of the
reinsurance. For most cessions it is the same as the
policy date. For continuations, it contains the issue
date of the original coverage.
Issue State This field contains a two-letter abbreviation of the
state or province of issue. Used to determine unisex
rates.
Resident State This field contains a two-letter abbreviation of the
state or province of issue. Used to compute premium
tax reimbursement if applicable.
Joint Type Identifies Joint business type
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87
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.
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
88
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.
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.)
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
89
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
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.)
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.
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
90
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
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.
Dividend If applicable, this field contains the reinsurer's
share of the direct dividend.
Policy Fee This field contains the reinsurance policy fee.
Continuation Original This field indicates the ceding company on the
Company original policy. (Used for conversions only.)
Continuation Original This field indicates the policy number for the
Policy original policy. (Used for conversions only.)
Continuation Original This field indicates the coverage/rider for the
Coverage/Rider original policy. (Used for conversions only.)
Message An informational message may be manually added to a
policy by the Ceding Company.
Image switch Hartford does not currently use. Defaults to spaces.
Policy Fee Allowance This field contains the reinsurance policy fee
allowance.
Location Code Hartford does not currently use. Defaults to spaces.
Treaty Reference Number Upon request, this field contains the Reinsurer's
treaty number.
Claim Hartford does not currently use. Defaults to spaces.
Policy Status This field identifies the status of the cession.
Policy Master Smoker -- 1 Policy smoker class on direct policy. For Joint Life
policies, this field contains the policy master
smoker class for Insured 1.
Policy Master Smoker -- 2 Policy smoker class on direct policy. For Joint Life
policies, this field contains the policy master
smoker class for Insured 2. (If this is not a Joint
Life policy, this field will be blank.)
Policy Effective Date This field contains the effective date of the
reinsurance.
Policy Application Date This field indicates the date the insured signed the
application.
NAR Type This field indicates the method used in determining
the Total Net Amount at Risk (as defined in Schedule
B).
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
91
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
POLICY EXHIBIT FILE*
Company Identifies the Ceding Company.
Policy Policy number which is part of the policy key.
Coverage/rider Coverage number which is part of the policy key. This
number is used to identify a specific policy
coverage.
Cession ID This field contains the number assigned to this
cession by the Reinsurer.
Line of Business This field indicates the line of business the policy
falls under.
Report Date This is the month the transaction was reported.
Reinsurance Company Two character reinsurance company ID code that
identifies the Reinsurer.
Reporting Company Identifies the company used for reporting purposes.
Will be the same as the Reinsurance Company.
Treaty Number This field contains the TAI system treaty number.
Transaction Type Identifies the type of transaction being reported on
the Transaction extract.
Policy Count Each New Business, Continuation & Reinstatement will
be assigned a count of 1, Terminations will be
assigned -- 1 and Renewals/NAR changes will be
assigned 0.
Base Ceded Amount This field contains the policy base amount ceded.
ADB ceded Amount This field contains the policy ADB amount ceded.
Waiver Ceded Amount This field contains the policy waiver amount ceded.
Net Amount at Risk The reinsured net amount at risk (NAR).
Plan This field contains the coverage plan code.
Auto/Fac Indicator Indicates whether the policy is ceded on an Automatic
or Facultative basis.
Reinsurance Type This field is a one-character code that identifies
the type of reinsurance. (Y = YRT, C = Coinsurance &
M = Modco.)
Currency Code This field identifies the currency. (USD or CND if
applicable)
* The Policy Exhibit will include a summary of reinsurance movement for a
given period categorized by transactions type. This summary provides the
Cession Count, Ceded Amount and Net Amount at Risk at the beginning of the
reporting period, a summary of the transactions occurring during the report
period as well as what is in force as of the ending of the report period.
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
92
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
RESERVE FILE
Company Identifies the Ceding Company
Policy Policy number which is part of the policy key
Coverage/rider Coverage number which is part of the policy key. This
number is used to identify a specific policy
coverage.
Cession ID This field contains the number assigned to this
cession by the Reinsurer
Benefit Type This field is the reserve type. 1 = Life, 2 = ADB, 3
= Waiver, 4 = Flat Extras, 5 = Substandard
Calc Method Hartford's TAI Valuation Method 1 = Xxxxxxx Reserve +
1/2 cx, E = Coinsurance Reserve, H = Half Premium, L
= Factor FLX1, X = 1/2 cx
Reinsurance Company Two character reinsurance company ID code that
identifies the Reinsurer.
Reporting Company Identifies the company used for reporting purposes.
Will be the same as the Reinsurance Company.
Line of Business This field indicates the line of business the policy
falls under. (L = Life)
Treaty Number This field contains the TAI system treaty number
Plan This field contains the coverage plan code.
Auto/Fac Indicator Indicates whether the policy is ceded on an Automatic
or Facultative basis.
Product code This field contains the product type code.
Joint Type Identifies Joint business Type
Joint Method Switch Identifies XXX Xxxxxxx method calculation
Mode Identifies the mode of reinsurance premium payment.
Cession Status This field identifies the status of the cession.
Reinsurance Type This field is a one-character code that identifies
the type of reinsurance.
Duration Contains the reinsurance duration. It may differ from
the policy duration if the cession is a continuation.
Participation code This field indicates whether the business is Non
participating (N) or Participating (P).
Policy Date This field contains the issue date of the policy.
Reinsurance To Date This field contains the end date of the period
covered by a record.
Policy Face Amount Indicates the face amount of the total policy.
Ceded Amount This field contains the policy amount ceded to a
specific reinsurer
Net Amount at Risk This field contains the reinsured net amount at risk
(NAR) for a specific reinsurer.
Premium This field contains the reinsurance premium.
Reserve Percent Value appears on Coinsurance business only
Cession Count Cession count only appears under Life (Base), not
benefits.
Age Basis Nearest/Closest (C), Last (L), Next (N)
Insured Status -- 1 This field indicates the insured's coverage status.
For Joint Life policies, this field indicates the
insured's coverage status for Insured 1.
Age -- 1 This field contains the insured's issue age. For
Joint Life policies, this field contains the issue
age for Insured 1.
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
93
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.
Sex -- 1 This field is used to identify the sex of the
insured. For Joint Life policies, this field contains
the sex of Insured 1.
Mortality -- 1 This field contains the insured's mortality rating.
For Joint Life policies, this field contains the
mortality rating for Insured 1.
Insured Status -- 2 This field indicates the insured's coverage status.
For Joint Life policies, this field indicates the
insured's coverage status for Insured 2. (If this is
not a Joint Life policy, this field will be blank.)
Age -- 2 This field contains the insured's issue age. For
Joint Life policies, this field contains the issue
age for Insured 2. (If this is not a Joint Life
policy, this field will be blank.)
Class -- 2 This field contains the company's rating of standard
or preferred and the smoker class. For Joint Life
policies, this field contains the class for Insured
2. (If this is not a Joint Life policy, this field
will be blank.)
Sex -- 2 This field is used to identify the sex of the
insured. For Joint Life policies, this field contains
the sex of Insured 2. (If this is not a Joint Life
policy, this field will be blank.)
Mortality -- 2 This field contains the insured's mortality rating.
For Joint Life policies, this field contains the
mortality rating for Insured 2. (If this is not a
Joint Life policy, this field will be blank.)
Reserve Statutory or Tax Reserve for each coverage.
Reserve Interest Rate This field identifies the Interest Rate used when
calculating reserves.
Reserve Factor Applicable Mortality Basis YRT Factor
Factor Pointer TAI specific field to identify applicable mortality
table used when calculating reserves.
Attained Age TAI specific field. Default is 1
Setback TAI specific field. Default is zero
Class Switch TAI specific field. Valuation Class (D = Distinct)
Curtate Switch This field indicates whether reserves are on a
curtate or continuous basis.
Caption Hartford's TAI Valuation Method
Error Code Informational field used by Hartford -- Usually Blank
Reserve Class 1 This field contains insured's smoker class. For Joint
Life policies, this field contains the class for
Insured 1.
Reserve Class 2 This field contains insured's smoker class. For Joint
Life policies, this field contains the class for
Insured 2. (If this is not a Joint Life policy, this
field will be blank.)
Currency Code This field identifies the currency. (USD or CND if
applicable)
Valuation Interest TAI assigned field that is used to read applicable
Pointer interest rates when calculating 1/2 cx reserves.
NAR Type This field indicates the method used in determining
the Total Net Amount at Risk (as defined in Schedule
B).
Allocated Retention Pool -- Effective 10/1/2008
Between XXX and Swiss Re
94
AMENDMENT 1
EFFECTIVE JULY 1, 2009
TO THE
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
SWISS RE LIFE & HEALTH AMERICA INC. ("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
include certain policies which were issued by the Ceding Company between October
1, 2008 and March 1, 2009 and ceded to the Reinsurer under the applicable
reinsurance treaty that was accepting new business on those dates; and
WHEREAS, the policies qualified as special cessions based on the following
criteria:
NOW, THEREFORE for good and valuable consideration, receipt of which is hereby
acknowledged,
1. The Ceding Company shall cede and the Reinsurer shall accept the risk on the
following policies, effective as of the reinsurance effective dates specified
below, in accordance with the terms of this Agreement; and
2. Reinsurance Premiums for such policies shall be calculated on a
point-in-scale basis in accordance with Exhibit I.
Allocation Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 1 -- Effective July 1, 2009
1
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of July 1, 2009.
SWISS RE LIFE & HEALTH AMERICA INC.
By: /s/ Xxxxxxx [ILLEGIBLE] Attest: /s/ [ILLEGIBLE]
----------------------------------- ----------------------------
Name: Xxxxxxx [ILLEGIBLE] Name: [ILLEGIBLE]
Title: Vice President Title: Vice President
Date: 3-3-10 Date: 3/3/2010
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxxx Xxxxxxxxx Attest: /s/ Xxxxxxx Xxxxxx
----------------------------------- ----------------------------
Name: Xxxxxxx Xxxxxxxxx Name: Xxxxxxx Xxxxxx
Title: Assistant Vice President & Actuary Title: Senior Vice President
Date: 3/15/2010 Date: 3/15/2010
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 1 -- Effective July 1, 2009
2
AMENDMENT 2
EFFECTIVE MARCH 5, 2010
TO THE
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
SWISS RE LIFE AND HEALTH AMERICA INC. ("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to add
the following new Single Life Plans of Insurance:
- Hartford Bicentennial UL Founders II
- Hartford Bicentennial UL Founders II Extended Value Option
and the following Rider:
- Owner Designated Settlement Option Rider.
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
1. Schedule A is deleted in its entirety and replaced with the attached revised
Schedule A.
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 2 -- Effective March 5, 2010
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of March 5, 2010.
SWISS RE LIFE AND HEALTH AMERICA INC.
By: /s/ [ILLEGIBLE] Attest: /s/ [ILLEGIBLE]
---------------------------- ----------------------------
Name: [ILLEGIBLE] Name: [ILLEGIBLE]
Title: Vice President Title: Vice President
Date: 4-14-10 Date: 4-14-10
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxxx Xxxxxxxxx Attest: /s/ Xxxx Xxxxxx
---------------------------- ----------------------------
Name: Xxxxxxx Xxxxxxxxx Name: Xxxx Xxxxxx, FSA, MAAA
Title: Assistant Vice President & Title: Senior Vice President
Actuary Individual Life Product
Management
Date: 4/16/2010 Date: 4/20/2010
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 2 -- Effective March 5, 2010
2
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE MARCH 5, 2010
SINGLE LIFE PLANS OF INSURANCE
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE*
----------------------------------------------------------------------------------------------
Stag UL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Bicentennial UL Founders 2001 CSO M/F S/NS Ultimate ANB A
Hartford UL CV 1980 CSO M/F S/NS Ultimate ALB A
Stag Wall Street VUL 1980 CSO M/F S/NS Ultimate ALB A
Stag Protector II VUL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Leaders VUL Legacy 2001 CSO M/F Composite Ultimate ANB A
Stag Accumulator II VUL 1980 CSO M/F Unismoke Ultimate ALB A
Hartford Leaders VUL Liberty (a) 1980 CSO M/F Unismoke Ultimate ANB A
Hartford Leaders VUL Liberty (b) 2001 CSO M/F Composite Ultimate ANB A
Life Solutions II UL (a) 1980 CSO M/F S/NS Ultimate ALB A
Life Solutions II UL (b) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Advanced Universal Life 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Freedom 2001 CSO M/F S/NS Ultimate ANB B
Hartford Quantum II VUL (a) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Quantum II VUL (b) 2001 CSO M/F S/NS Ultimate ANB A
Hartford Extraordinary Whole Life (a) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Extraordinary Whole Life (b) 2001 CSO M/F S/NS Ultimate ANB A
Hartford Bicentennial UL Founders II 2001 CSO M/F S/NS Ultimate ANB A
Hartford Bicentennial UL Founders II
Extended Value Option 2001 CSO M/F S/NS Ultimate ANB A
RIDERS PROVIDING DEATH BENEFITS RIDERS THAT PROVIDE ADDITIONAL
THAT ARE ELIGIBLE FOR REINSURANCE: BENEFITS BUT THAT ARE NOT ELIGIBLE
FOR REINSURANCE:
Accidental Death Benefit (ADB)
Rider
Primary Insured Term Rider Accelerated Benefit Rider (ABR)
Other Covered Insured Term Life LifeAccess Accelerated Ben. Rider
Rider (LAABR)
Cost of Living Adjustment (COLA) Policy Continuation Rider
Rider
Policy Protection Rider (PPR)
Enhanced No Lapse Guarantee Rider
NOTE: NAR Type for term riders Lifetime No Lapse Guarantee Rider
above is C.
For COLA Rider, NAR Type follows Guar. Min. Accum. Benefit (GMAB)
Rider
Base Policy to which it is Paid-Up Life Insurance Rider
attached.
Conversion Option Rider
Overloan Protection Rider
* NAR Type is described in Schedule Waiver of Specified Amount (WSA)
X. Xxxxx
Waiver of Monthly Deductions (WMD)
Rider
Children's Life Insurance Rider
Foreign Travel Exclusion Rider
Estate Tax Repeal Benefit Rider
Modified Surrender Value Rider
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 2 -- Effective March 5, 2010
3
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE MARCH 15, 2010
RIDERS THAT PROVIDE ADDITIONAL
BENEFITS BUT THAT ARE NOT ELIGIBLE
FOR REINSURANCE (CONTINUED):
Cash Surrender Value Endorsement
Automatic Premium Payment Rider
Additional Premium Rider
Qualified Plan Rider
Owner Designated Settlement Option
Rider
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Primary Insured Term Rider: Provides additional level term life coverage on the
base policy insured.
Other Covered Insured Term Life Rider: Provides level term life coverage on an
insured other than the base policy insured.
Cost of Living Adjustment (COLA) Rider: Provides for biennial face amount
increases, without underwriting, based on increases in the Consumer Price Index.
The maximum amount of any single increase is $50,000. Any increase can be
declined by the policyholder, which stops future increases. Available only at
issue and only for non-substandard issue ages 0 through 60.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Accidental Death Benefit Rider: Pays an additional death benefit if the death
on the insured is caused by a qualifying accident.
Accelerated Benefit Rider: Provides the policyholder up to 100% of the death
benefit, discounted with interest, if the insured's life expectancy is 12 months
or less. After acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
LifeAccess Accelerated Benefit Rider (LAABR): Provides for monthly benefits (up
to 2% of death benefit) if insured meets certain ADL and home-care requirements.
During and after acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
Policy Continuation Rider: Intended to prevent the lapse of highly loaned
policies.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 2 -- Effective March 5, 2010
4
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE MARCH 5, 2010
Policy Protection Rider: Protects the death benefit of the base policy and any
primary insured term rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Enhanced No Lapse Guarantee Rider: Provides that the policy will not lapse as
long as cumulative premiums paid less indebtedness and less withdrawals are
greater than or equal to the cumulative no lapse guarantee premiums. Length of
guarantee varies by issue age.
Lifetime No Lapse Guarantee Rider: Same as Enhanced No Lapse Guarantee Rider
but with lifetime guarantee.
Guaranteed Minimum Accumulation Benefit (GMAB) Rider: Provides, at the end of
the GMAB Guarantee Period (usually 20 years), that the policy Account Value will
be increased, if necessary, to equal the sum of gross premiums paid to that
date. There is a small monthly charge and a minimum cumulative premium
requirement to keep the rider in force.
Paid-Up Life Insurance Rider: Similar to the GMAB rider, with the same
Guarantee Period, a monthly charge, and a cumulative premium requirement. At end
of the Guarantee Period, the owner may elect to change coverage to paid-up life
using the Account Value as a 5% NSP to determine the amount of coverage;
however, the amount of coverage will never be lower than the sum of gross
premiums paid to that date. Once elected, premiums are no longer payable.
Conversion Option Rider: During certain policy years and prior to the insured's
attained age 70, the policy may be converted, without evidence of insurability,
to any permanent plan of life insurance the Ceding Company then makes available
for conversions of this policy.
Overloan Protection Rider: Protects a policy from terminating due to overloan.
Waiver of Specified Amount (WSA) Rider: Waives a specified amount monthly while
the insured is disabled.
Waiver of Monthly Deductions (WMD) Rider: Waives monthly deduction amounts
while the insured is disabled.
Children's Life Insurance Rider: Provides level term life coverage for each
child of the insured.
Foreign Travel Exclusion Rider: Provides a limited death benefit (Account Value
less indebtedness) if the insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
Estate Tax Repeal Benefit Rider: Pays the policy Account Value less
indebtedness if the Federal Estate Tax Law is fully repealed by December 31,
2010, and the Ceding Company receives a request for this benefit amount from the
policy owner.
Modified Surrender Value Rider: Changes the Cash Surrender Value definition (to
equal the Account Value) if the policy is surrendered within 3 years after the
policy issue date.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 2 -- Effective March 5, 2010
5
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE MARCH 15, 2010
Cash Surrender Value Endorsement: Provides for enhanced Cash Surrender Value
(equal to the current Account Value) in the event of policy surrender in the
first 4 policy years, unless the policy is exchanged under Section 1035 to
another company's policy.
Automatic Premium Payment Rider: Provides for any Scheduled Premium due and
unpaid by the end of any Policy Grace Period to be paid by an automatic
deduction from the Account Value, if the Account Value exceeds the Guaranteed
Cash Value.
Additional Premium Rider: Allows additional premium amounts to be paid at the
same payment intervals as scheduled premiums.
Qualified Plan Rider: This rider indicates that the policy is owned by a
qualified plan, details the policy owner's reporting responsibilities to The
Hartford, and describes features and activities that are unavailable when the
policy is owned by a Qualified Plan.
Owner Designated Settlement Option. This rider allows the policy owner to
designate a Settlement Option to be used for the payment of Death Proceeds.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 2 -- Effective March 5, 2010
6
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE MARCH 5, 2010
LAST SURVIVOR PLANS OF INSURANCE
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE*
------------------------------------------------------------------------
Hartford Leaders VUL 2001 CSO M/F S/NS Select & A
Joint Legacy Ultimate ALB
Hartford Leaders VUL 2001 CSO M/F S/NS Select & A
Joint Legacy II Ultimate ANB
Hartford Advanced 2001 CSO M/F S/NS Select & B
Last Survivor UL Ultimate ALB
Hartford 2001 CSO M/F S/NS Select & B
Bicentennial UL Ultimate ALB
Joint Freedom
Hartford 2001 CSO M/F S/NS Select & B
Bicentennial UL Ultimate ANB
Joint Freedom II
------------
* NAR Type is described in Schedule B.
RIDERS PROVIDING DEATH BENEFITS RIDERS THAT PROVIDE ADDITIONAL
THAT ARE ELIGIBLE FOR REINSURANCE BENEFITS BUT THAT ARE NOT ELIGIBLE
FOR REINSURANCE:
Estate Protection Rider (NAR Type LS Exchange Option Rider
is C)
Policy Protection Rider
Estate Tax Repeal Rider
Foreign Travel Exclusion Rider
Guar. Min. Accum. Benefit (GMAB)
Rider
Paid-Up Life Insurance Rider
Owner Designated Settlement Option
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Estate Protection Rider: This rider provides last survivor level term life
insurance on the base policy insureds for three years.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
LS Exchange Option Rider: Allows a Last Survivor policy to be split into two
Single Life policies, without new evidence of insurability, if divorce, business
dissolution, or estate-tax repeal or reduction occurs. The face amount of each
new Single Life policy will equal one half of the Last Survivor policy face
amount. Upon a split, reinsurance will continue at point-in-scale rates for each
single life, as documented in Section X.C. (This rider is not available when one
of the insureds is uninsurable or above Table H.)
Policy Protection Rider: Protects the death benefit of the base policy and any
Estate Protection Rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 2 -- Effective March 5, 2010
7
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE MARCH 5, 2010
Estate Tax Repeal Rider: This rider will pay the Account Value less
indebtedness if the Federal Estate Tax Law is fully repealed by December 31,
2010, and the Ceding Company receives a request for this benefit amount from the
policy owner.
Foreign Travel Exclusion: Provides a limited death benefit (Account Value less
indebtedness) if either insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
GMAB Rider and Paid-Up Life Insurance Rider: Same as Single Life riders.
Owner Designated Settlement Option. This rider allows the policy owner to
designate a Settlement Option to be used for the payment of Death Proceeds.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 2 -- Effective March 5, 2010
8
AMENDMENT 3
EFFECTIVE OCTOBER 1, 2008
TO THE
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
SWISS RE LIFE & HEALTH AMERICA INC. ("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 add Annual Renewable Term
as a Base Policy available for coverage for facultative submissions; and
WHEREAS, the Ceding Company and the Reinsurer wish to provide for approximate
Net Amount at Risk (NAR) Type B reporting in certain circumstances; and
WHEREAS, the Ceding Company and the Reinsurer wish to reflect the correct
Valuation Mortality Tables associated with Last Survivor Plans of Insurance; and
WHEREAS, the Ceding Company and the Reinsurer wish to correct the Reinsurer's
Quota Share Percentage for NAR2 (ReinsQS2%).
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
1. The above recitals are true and accurate and are incorporated herein.
2. Section III. A, Automatic Reinsurance, is hereby amended to include the
following Section III.A. 11:
11. The policy is not an Annual Renewable Term policy.
3. Article VII, Reinsurance Reporting, is deleted in its entirety and replaced
with the attached, revised Article VII.
4. Schedule A is deleted in its entirety and replaced with the attached,
revised Schedule A.
5. Schedule B is deleted in its entirety and replaced with the attached,
revised Schedule B.
6. Exhibit II is deleted in its entirety and replaced with the attached,
revised Exhibit II.
Allocated Retention Pool -- Effective 10/1/2008
Between HLAIC and Swiss Re
Amendment #3 -- Effective 10/1/2008
1
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of October 1, 2008.
SWISS RE LIFE & HEALTH AMERICA INC.
By: /s/ [ILLEGIBLE] Attest: /s/ Xxxxxx Xxxx
------------------------------ ------------------------------
Name: [ILLEGIBLE] Name: Xxxxxx Xxxx
Title: Senior Vice President Title: Vice President
Date: April 7, 2011 Date: 4/7/2011
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: Asst. Vice President and Title: Senior Vice President
Actuary Individual Life Individual Life Product
Product Management Management
Date: 4/28/2011 Date: 4/29/2011
Allocated Retention Pool -- Effective 10/1/2008
Between HLAIC and Swiss Re
Amendment #3 -- Effective 10/1/2008
2
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 estimated Net Amount at Risk for new
reinsurance business in the first monthly report in which such business appears.
In the event that the Ceding Company provides an estimated Net Amount at Risk,
it shall provide an actual Net Amount at Risk in subsequent monthly reports.
Additional reports reasonably requested by a Party will be provided by the other
Party in a timely manner.
B. Reporting Format and Medium
The information to be provided by the Ceding Company in these monthly reports to
the Reinsurer shall be in a format, and 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.
The Ceding Company shall inform the Reinsurer at least one month in advance of
any change in the reporting format or data prior to its use in reports to the
Reinsurer. The Ceding Company shall provide the Reinsurer with a test file
containing such a change prior to its implementation in the production of
reports.
C. Reporting Delays
The Ceding Company shall inform the Reinsurer of any material delays.
Allocated Retention Pool -- Effective 10/1/2008
Between HLAIC and Swiss Re
Amendment #3 -- Effective 10/1/2008
3
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
SINGLE LIFE PLANS OF INSURANCE
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE*
-----------------------------------------------------------------------------
Stag UL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Bicentennial UL Founders 2001 CSO M/F S/NS Ultimate ANB A
Hartford UL CV 1980 CSO M/F S/NS Ultimate ALB A
Stag Wall Street VUL 1980 CSO M/F S/NS Ultimate ALB A
Stag Protector II VUL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Leaders VUL Legacy 2001 CSO M/F Composite Ultimate A
ANB
Stag Accumulator II VUL 1980 CSO M/F Unismoke Ultimate ALB A
Hartford Leaders VUL Liberty (a) 1980 CSO M/F Unismoke Ultimate ANB A
Hartford Leaders VUL Liberty (b) 2001 CSO M/F Composite Ultimate A
ANB
Life Solutions II UL (a) 1980 CSO M/F S/NS Ultimate ALB A
Life Solutions II UL (b) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Advanced Universal Life 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Freedom 2001 CSO M/F S/NS Ultimate ANB B
Hartford Quantum II VUL (a) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Quantum II VUL (b) 2001 CSO M/F S/NS Ultimate ANB A
Hartford ExtraOrdinary Whole Life 2001 CSO M/F S/NS Ultimate ALB A
(a)
Hartford ExtraOrdinary Whole Life 2001 CSO M/F S/NS Ultimate ANB A
(b)
Annual Renewable Term 2001 CSO M/F S/NS Ultimate ANB C
RIDERS PROVIDING DEATH BENEFITS RIDERS THAT PROVIDE ADDITIONAL
THAT ARE ELIGIBLE FOR REINSURANCE: BENEFITS BUT THAT ARE NOT ELIGIBLE
FOR REINSURANCE:
Accidental Death Benefit (ADB)
Rider
Primary Insured Term Rider Accelerated Benefit Rider (ABR)
Other Covered Insured Term Life LifeAccess Accelerated Ben. Rider
Rider (LAABR)
Cost of Living Adjustment (COLA) Policy Continuation Rider
Rider
Policy Protection Rider (PPR)
Enhanced No Lapse Guarantee Rider
NOTE: NAR Type for term riders Lifetime No Lapse Guarantee Rider
above is C.
For COLA Rider, NAR Type follows Guar. Min. Accum. Benefit (GMAB)
Rider
Base Policy to which it is Paid-Up Life Insurance Rider
attached.
Conversion Option Rider
Overloan Protection Rider
* NAR Type is described in Schedule Waiver of Specified Amount (WSA)
X. Xxxxx
Waiver of Monthly Deductions (WMD)
Rider
Children's Life Insurance Rider
Foreign Travel Exclusion Rider
Estate Tax Repeal Benefit Rider
Modified Surrender Value Rider
Allocated Retention Pool -- Effective 10/1/2008
Between HLAIC and Swiss Re
Amendment #3 -- Effective 10/1/2008
4
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT
ELIGIBLE FOR REINSURANCE (CONTINUED):
Cash Surrender Value Endorsement
Automatic Premium Payment Rider
Additional Premium Rider
Qualified Plan Rider
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Primary Insured Term Rider: Provides additional level term life coverage on the
base policy insured.
Other Covered Insured Term Life Rider: Provides level term life coverage on an
insured other than the base policy insured.
Cost of Living Adjustment (COLA) Rider: Provides for biennial face amount
increases, without underwriting, based on increases in the Consumer Price Index.
The maximum amount of any single increase is $50,000. Any increase can be
declined by the policyholder, which stops future increases. Available only at
issue and only for non-substandard issue ages 0 through 60.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Accidental Death Benefit Rider: Pays an additional death benefit if the death on
the insured is caused by a qualifying accident.
Accelerated Benefit Rider: Provides the policyholder up to 100% of the death
benefit, discounted with interest, if the insured's life expectancy is 12 months
or less. After acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
LifeAccess Accelerated Benefit Rider (LAABR): Provides for monthly benefits (up
to 2% of death benefit) if insured meets certain ADL and home-care requirements.
During and after acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall BE liable for such
Reinsured Net Amount at Risk upon the death of the insured.
Policy Continuation Rider: Intended to prevent the lapse of highly loaned
policies.
Allocated Retention Pool -- Effective 10/1/2008
Between HLAIC and Swiss Re
Amendment #3 -- Effective 10/1/2008
5
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
primary insured term rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Enhanced No Lapse Guarantee Rider: Provides that the policy will not lapse as
long as cumulative premiums paid less indebtedness and less withdrawals are
greater than or equal to the cumulative no lapse guarantee premiums. Length of
guarantee varies by issue age.
Lifetime No Lapse Guarantee Rider: Same as Enhanced No Lapse Guarantee Rider but
with lifetime guarantee.
Guaranteed Minimum Accumulation Benefit (GMAB) Rider: Provides, at the end of
the GMAB Guarantee Period (usually 20 years), that the policy Account Value will
be increased, if necessary, to equal the sum of gross premiums paid to that
date. There is a small monthly charge and a minimum cumulative premium
requirement to keep the rider in force.
Paid-Up Life Insurance Rider: Similar to the GMAB rider, with the same Guarantee
Period, a monthly charge, and a cumulative premium requirement. At end of the
Guarantee Period, the owner may elect to change coverage to paid-up life using
the Account Value as a 5% NSP to determine the amount of coverage; however, the
amount of coverage will never be lower than the sum of gross premiums paid to
that date. Once elected, premiums are no longer payable.
Conversion Option Rider: During certain policy years and prior to the insured's
attained age 70, the policy may be converted, without evidence of insurability,
to any permanent plan of life insurance the Ceding Company then makes available
for conversions of this policy.
Overloan Protection Rider: Protects a policy from terminating due to overloan.
Waiver of Specified Amount (WSA) Rider: Waives a specified amount monthly while
the insured is disabled.
Waiver of Monthly Deductions (WMD) Rider: Waives monthly deduction amounts while
the insured is disabled.
Children's Life Insurance Rider: Provides level term life coverage for each
child of the insured.
Foreign Travel Exclusion Rider: Provides a limited death benefit (Account Value
less indebtedness) if the insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
Estate Tax Repeal Benefit Rider: Pays the policy Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Modified Surrender Value Rider: Changes the Cash Surrender Value definition (to
equal the Account Value) if the policy is surrendered within 3 years after the
policy issue date.
Allocated Retention Pool -- Effective 10/1/2008
Between HLAIC and Swiss Re
Amendment #3 -- Effective 10/1/2008
6
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
Cash Surrender Value Endorsement: Provides for enhanced Cash Surrender Value
(equal to the current Account Value) in the event of policy surrender in the
first 4 policy years, unless the policy is exchanged under Section 1035 to
another company's policy.
Automatic Premium Payment Rider: Provides for any Scheduled Premium due and
unpaid by the end of any Policy Grace Period to be paid by an automatic
deduction from the Account Value, if the Account Value exceeds the Guaranteed
Cash Value.
Additional Premium Rider: Allows additional premium amounts to be paid at the
same payment intervals as scheduled premiums.
Qualified Plan Rider: This rider indicates that the policy is owned by a
qualified plan, details the policy owner's reporting responsibilities to The
Hartford, and describes features and activities that are unavailable when the
policy is owned by a Qualified Plan.
Allocated Retention Pool -- Effective 10/1/2008
Between HLAIC and Swiss Re
Amendment #3 -- Effective 10/1/2008
7
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
LAST SURVIVOR PLANS OF INSURANCE
BASE POLICY VALUATION MORTALITY TABLE(S) NAR
TYPE*
----------------------------------------------------------------------------
Hartford Leaders VUL Joint Legacy 2001 CSO M/F S/NS Ultimate ALB A
Hartford Leaders VUL Joint Legacy 2001 CSO M/F S/NS Ultimate ANB A
II
Hartford Advanced Last Survivor UL 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Joint 2001 CSO M/F S/NS Ultimate ALB B
Freedom
Hartford Bicentennial UL Joint 2001 CSO M/F S/NS Ultimate ANB B
Freedom II
* NAR Type is described in Schedule B.
RIDERS PROVIDING DEATH BENEFITS RIDERS THAT PROVIDE ADDITIONAL
THAT ARE ELIGIBLE FOR REINSURANCE BENEFITS BUT THAT ARE NOT ELIGIBLE
FOR REINSURANCE:
Estate Protection Rider (NAR Type LS Exchange Option Rider
is C)
Policy Protection Rider
Estate Tax Repeal Rider
Foreign Travel Exclusion Rider
Guar. Min. Accum. Benefit (GMAB)
Rider
Paid-Up Life Insurance Rider
Rider Descriptions (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Estate Protection Rider: This rider provides last survivor level term life
insurance on the base policy insureds for three years.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
LS Exchange Option Rider: Allows a Last Survivor policy to be split into two
Single Life policies, without new evidence of insurability, if divorce, business
dissolution, or estate-tax repeal or reduction occurs. The face amount of each
new Single Life policy will equal one half of the Last Survivor policy face
amount. Upon a split, reinsurance will continue at point-in-scale rates for each
single life, as documented in Section X.C. (This rider is not available when one
of the insureds is uninsurable or above Table H.)
Policy Protection Rider: Protects the death benefit of the base policy and any
Estate Protection Rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Allocated Retention Pool -- Effective 10/1/2008
Between HLAIC and Swiss Re
Amendment #3 -- Effective 10/1/2008
8
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
Estate Tax Repeal Rider: This rider will pay the Account Value less
indebtedness if the Federal Estate Tax Law is fully repealed by December 31,
2010, and the Ceding Company receives a request for this benefit amount from the
policy owner.
Foreign Travel Exclusion: Provides a limited death benefit (Account Value less
indebtedness) if either insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
GMAB Rider and Paid-Up Life Insurance Rider: Same as Single Life riders.
Allocated Retention Pool -- Effective 10/1/2008
Between HLAIC and Swiss Re
Amendment #3 -- Effective 10/1/2008
9
SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
AUTOMATIC REINSURANCE: The Ceding Company shall retain its available retention
on each risk, defined below as the Retained Net Amount at Risk, subject to the
applicable Ceding Company's Treaty Retention Limit shown in Exhibit II.
The Reinsurer will automatically reinsure a portion of the remainder of the
risk, called the Reinsured Net Amount at Risk, as defined below in this Schedule
B.
FACULTATIVE REINSURANCE: The Reinsurer will reinsure X% (as determined at
issue) of the Total Net Amount at Risk for the risk.
TOTAL ALLOCATION LIMIT (TAL): As shown in Exhibit II.
CEDING COMPANY'S TREATY RETENTION LIMIT (CCTRL): As shown in Exhibit II.
CEDING COMPANY'S ALLOCATED RETENTION (CCAR): As shown in Exhibit II.
CURRENT RETENTION (CURRRET) = Current amount of life insurance retained by the
Ceding Company and its affiliated companies on the life for in-force life
insurance coverage. (For Last Survivor risks, see the Last Survivor Limits and
Retention Worksheet in Exhibit II.)
REINSURER'S ALLOCATED RETENTION (REINSARET): As shown in Exhibit II.
REINSURER'S ATTACHMENT POINT (REINSAPT): As shown in Exhibit II.
NAR TYPE for the Plan of Insurance to be reinsured under this Agreement, as
shown in Schedule A.
STEP 1 -- DETERMINE TOTAL NET AMOUNT AT RISK FOR THE COVERAGE*
TOTAL NET AMOUNT AT RISK (TOTNAR) =
For NAR TYPE A, Death Benefit minus the Account Value.
For NAR TYPE B, Death Benefit minus the Working Reserve, where
Working Reserve = (i) x (ii) / (iii), and
* In cases where the current Working Reserve is not available, the Ceding
Company may estimate such amount using either the most recent Working
Reserve or the Account Value.
Allocated Retention Pool -- Effective 10/1/2008
Between HLAIC and Swiss Re
Amendment #3 -- Effective 10/1/2008
10
SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
STEP 1 -- DETERMINE TOTAL NET AMOUNT AT RISK FOR THE COVERAGE* (CONTINUED)
For NAR TYPE C, Death Benefit.
STEP 2 -- DETERMINE NET AMOUNT AT RISK FOR EACH "LAYER" OF COVERAGE
STEP 3 -- DETERMINE THE NAR FOR THE CEDING COMPANY AND THEN FOR THE REINSURER
MINIMUM REINSURANCE CESSION: AUTOMATIC:
FACULTATIVE:
LEAD REINSURER: Swiss Re Life & Health America Inc.
Allocated Retention Pool -- Effective 10/1/2008
Between HLAIC and Swiss Re
Amendment #3 -- Effective 10/1/2008
11
EXHIBIT II
RETENTION, BINDING, AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
(FOR SPECIFICS ON CALCULATION OF LIMITS WITH LAST SURVIVOR COVERAGE, SEE
WORKSHEET ON PAGE 4)
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLAIC and Swiss Re
Amendment #3 -- Effective 10/1/2008
12
EXHIBIT II
RETENTION, BINDING, AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
(FOR SPECIFICS ON CALCULATION OF LIMITS WITH LAST SURVIVOR COVERAGE, SEE
WORKSHEET ON PAGE 4)
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLAIC and Swiss Re
Amendment #3 -- Effective 10/1/2008
13
EXHIBIT II
RETENTION, BINDING, AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLAIC and Swiss Re
Amendment #3 -- Effective 10/1/2008
14
EXHIBIT II
RETENTION, BINDING, AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLAIC and Swiss Re
Amendment #3 -- Effective 10/1/2008
15
AMENDMENT 4
EFFECTIVE JULY 1, 2010
TO THE
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
SWISS RE LIFE & HEALTH AMERICA INC. ("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to include re-priced versions
of the Hartford Bicentennial UL Freedom and Hartford Bicentennial UL Joint
Freedom II products in the Agreement, for policies issued on or after the
effective date of this Amendment.
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
1. The above recitals are true and accurate and are incorporated
herein.
2. Schedule A is deleted in its entirety and replaced with the attached
revised Schedule A.
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 4 -- Effective July 1, 2010
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of July 1, 2010.
SWISS RE LIFE & HEALTH AMERICA INC.
By: /s/ Xxxxx X'Xxxxxxxx Xxxxxx: /s/ Xxxxxx Xxxxxxxxxx
---------------------------- ----------------------------
Name: Xxxxx X'Xxxxxxxx Name: Xxxxxx Xxxxxxxxxx
Title: Senior Vice President Title: Vice President
Date: August 2 2010 Date: August 2, 2010
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxxx Xxxxxxxxx Attest: /s/ Xxxxxxx Xxxxxx
---------------------------- ----------------------------
Name: Xxxxxxx Xxxxxxxxx Name: Xxxxxxx Xxxxxx
Title: Assistant Vice President & Title: Senior Vice President &
Actuary Actuary
Date: 8/16/2010 Date: 8/16/2010
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 4 -- Effective July 1, 2010
2
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE JULY 1, 2010
SINGLE LIFE PLANS OF INSURANCE
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE*
--------------------------------------------------------------------------------
Stag UL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Bicentennial 2001 CSO M/F S/NS Ultimate ANB A
UL Founders
Hartford UL CV 1980 CSO M/F S/NS Ultimate ALB A
Stag Wall Street VUL 1980 CSO M/F S/NS Ultimate ALB A
Stag Protector II VUL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Leaders VUL 2001 CSO M/F Composite Ultimate ANB A
Legacy
Stag Accumulator II 1980 CSO M/F Unismoke Ultimate ALB A
VUL
Hartford Leaders VUL 1980 CSO M/F Unismoke Ultimate ANB A
Liberty (a)
Hartford Leaders VUL 2001 CSO M/F Composite Ultimate ANB A
Liberty (b)
Life Solutions II UL 1980 CSO M/F S/NS Ultimate ALB A
(a)
Life Solutions II UL 2001 CSO M/F S/NS Ultimate ALB A
(b)
Hartford Advanced 2001 CSO M/F S/NS Ultimate ALB B
Universal Life
Hartford Bicentennial 2001 CSO M/F S/NS Ultimate ANB B
UL Freedom (a)
Hartford Bicentennial 2001 CSO M/F S/NS Ultimate ANB A
UL Freedom (b)
Hartford Quantum II 2001 CSO M/F S/NS Ultimate ALB A
VUL (a)
Hartford Quantum II 2001 CSO M/F S/NS Ultimate ANB A
VUL (b)
Hartford ExtraOrdinary 2001 CSO M/F S/NS Ultimate ALB A
Whole Life (a)
Hartford ExtraOrdinary 2001 CSO M/F S/NS Ultimate ANB A
Whole Life (b)
Hartford Bicentennial 2001 CSO M/F S/NS Ultimate ANB A
UL Founders II
Hartford Bicentennial 2001 CSO M/F S/NS Ultimate ANB A
UL Founders II
Extended Value Option
Annually Renewable 2001 CSO M/F S/NS Ultimate ANB C
Term (ART)
------------
* NAR Type is described is schedule B.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 4 -- Effective July 1, 2010
3
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE JULY 1, 2010
SINGLE LIFE PLANS OF INSURANCE
RIDERS PROVIDING DEATH BENEFITS THAT RIDERS THAT PROVIDE ADDITIONAL
ARE ELIGIBLE FOR REINSURANCE: BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Accidental Death Benefit (ADB) Rider
Primary Insured Term Rider Accelerated Benefit Rider (ABR)
Other Covered Insured Term Life Rider LifeAccess Accelerated Ben. Rider
(LAABR)
Cost of Living Adjustment (COLA) Rider Policy Continuation Rider
Policy Protection Rider (PPR)
Enhanced No Lapse Guarantee Rider
NOTE: NAR Type for term riders above Lifetime No Lapse Guarantee Rider
is C. For COLA Rider, NAR Type follows Guar. Min. Accum. Benefit (GMAB) Rider
Base Policy to which it is attached. Paid-Up Life Insurance Rider
Conversion Option Rider
Overloan Protection Rider
Waiver of Specified Amount (WSA) Rider Waiver of Monthly Deductions (WMD)
Rider
Children's Life Insurance Rider
Foreign Travel Exclusion Rider
Estate Tax Repeal Benefit Rider
Modified Surrender Value Rider
Cash Surrender Value Endorsement
Automatic Premium Payment Rider
Additional Premium Rider
Qualified Plan Rider
Owner Designated Settlement Option
Rider
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 4 -- Effective July 1, 2010
4
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE JULY 1, 2010
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Primary Insured Term Rider: Provides additional level term life coverage on the
base policy insured.
Other Covered Insured Term Life Rider: Provides level term life coverage on an
insured other than the base policy insured.
Cost of Living Adjustment (COLA) Rider: Provides for biennial face amount
increases, without underwriting, based on increases in the Consumer Price Index.
The maximum amount of any single increase is $50,000. Any increase can be
declined by the policyholder, which stops future increases. Available only at
issue and only for non-substandard issue ages 0 through 60.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Accidental Death Benefit Rider: Pays an additional death benefit if the death
on the insured is caused by a qualifying accident.
Accelerated Benefit Rider: Provides the policyholder up to 100% of the death
benefit, discounted with interest, if the insured's life expectancy is 12 months
or less. After acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
LifeAccess Accelerated Benefit Rider (LAABR): Provides for monthly benefits (up
to 2% of death benefit) if insured meets certain ADL and home-care requirements.
During and after acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
Policy Continuation Rider: Intended to prevent the lapse of highly loaned
policies.
Policy Protection Rider: Protects the death benefit of the base policy and any
primary insured term rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Enhanced No Lapse Guarantee Rider: Provides that the policy will not lapse as
long as cumulative premiums paid less indebtedness and less withdrawals are
greater than or equal to the cumulative no lapse guarantee premiums. Length of
guarantee varies by issue age.
Lifetime No Lapse Guarantee Rider: Same as Enhanced No Lapse Guarantee Rider
but with lifetime guarantee.
Guaranteed Minimum Accumulation Benefit (GMAB) Rider: Provides, at the end of
the GMAB Guarantee Period (usually 20 years), that the policy Account Value will
be increased, if necessary, to equal the sum of gross premiums paid to that
date. There is a small monthly charge and a minimum cumulative premium
requirement to keep the rider in force.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 4 -- Effective July 1, 2010
5
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE JULY 1, 2010
Paid-Up Life Insurance Rider: Similar to the GMAB rider, with the same
Guarantee Period, a monthly charge, and a cumulative premium requirement. At end
of the Guarantee Period, the owner may elect to change coverage to paid-up life
using the Account Value as a 5% NSP to determine the amount of coverage;
however, the amount of coverage will never be lower than the sum of gross
premiums paid to that date. Once elected, premiums are no longer payable.
Conversion Option Rider: During certain policy years and prior to the insured's
attained age 70, the policy may be converted, without evidence of insurability,
to any permanent plan of life insurance the Ceding Company then makes available
for conversions of this policy.
Overloan Protection Rider: Protects a policy from terminating due to overloan.
Waiver of Specified Amount (WSA) Rider: Waives a specified amount monthly while
the insured is disabled.
Waiver of Monthly Deductions (WMD) Rider: Waives monthly deduction amounts
while the insured is disabled.
Children's Life Insurance Rider: Provides level term life coverage for each
child of the insured.
Foreign Travel Exclusion Rider: Provides a limited death benefit (Account Value
less indebtedness) if the insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
Estate Tax Repeal Benefit Rider: Pays the policy Account Value less
indebtedness if the Federal Estate Tax Law is fully repealed by December 31,
2010, and the Ceding Company receives a request for this benefit amount from the
policy owner.
Modified Surrender Value Rider: Changes the Cash Surrender Value definition (to
equal the Account Value) if the policy is surrendered within 3 years after the
policy issue date.
Cash Surrender Value Endorsement: Provides for enhanced Cash Surrender Value
(equal to the current Account Value) in the event of policy surrender in the
first 4 policy years, unless the policy is exchanged under Section 1035 to
another company's policy.
Automatic Premium Payment Rider: Provides for any Scheduled Premium due and
unpaid by the end of any Policy Grace Period to be paid by an automatic
deduction from the Account Value, if the Account Value exceeds the Guaranteed
Cash Value.
Additional Premium Rider: Allows additional premium amounts to be paid at the
same payment intervals as scheduled premiums.
Qualified Plan Rider: This rider indicates that the policy is owned by a
qualified plan, details the policy owner's reporting responsibilities to The
Hartford, and describes features and activities that are unavailable when the
policy is owned by a Qualified Plan.
Owner Designated Settlement Option. This rider allows the policy owner to
designate a Settlement Option to be used for the payment of Death Proceeds.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 4 -- Effective July 1, 2010
6
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE JULY 1, 2010
LAST SURVIVOR PLANS OF INSURANCE
BASE POLICY VALUATION MORTALITY TABLE(S) NAR TYPE*
-------------------------------------------------------------------------------------------------------
Hartford Leaders VUL Joint Legacy 2001 CSO M/F S/NS Ultimate ALB A
Hartford Leaders VUL Joint Legacy II 2001 CSO M/F S/NS Ultimate ANB A
Hartford Advanced Last Survivor UL 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Joint Freedom 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Joint Freedom II (a) 2001 CSO M/F S/NS Ultimate ANB B
Hartford Bicentennial UL Joint Freedom II (b) 2001 CSO M/F S/NS Ultimate ANB A
------------
* NAR Type is described in Schedule B
RIDERS PROVIDING DEATH BENEFITS THAT RIDERS THAT PROVIDE ADDITIONAL
ARE ELIGIBLE FOR REINSURANCE BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Estate Protection Rider (NAR Type is C) LS Exchange Option Rider
Policy Protection Rider
Estate Tax Repeal Rider
Foreign Travel Exclusion Rider
Guar. Min. Accum. Benefit (GMAB) Rider
Paid-Up Life Insurance Rider
Owner Designated Settlement Option
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Estate Protection Rider: This rider provides last survivor level term life
insurance on the base policy insureds for three years.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
LS Exchange Option Rider: Allows a Last Survivor policy to be split into two
Single Life policies, without new evidence of insurability, if divorce, business
dissolution, or estate-tax repeal or reduction occurs. The face amount of each
new Single Life policy will equal one half of the Last Survivor policy face
amount. Upon a split, reinsurance will continue at point-in-scale rates for each
single life, as documented in Section X.C. (This rider is not available when one
of the insureds is uninsurable or above Table H.)
Policy Protection Rider: Protects the death benefit of the base policy and any
Estate Protection Rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 4 -- Effective July 1, 2010
7
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE JULY 1, 2010
Estate Tax Repeal Rider: This rider will pay the Account Value less
indebtedness if the Federal Estate Tax Law is fully repealed by December 31,
2010, and the Ceding Company receives a request for this benefit amount from the
policy owner.
Foreign Travel Exclusion: Provides a limited death benefit (Account Value less
indebtedness) if either insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
GMAB Rider and Paid-Up Life Insurance Rider: Same as Single Life riders.
Owner Designated Settlement Option. This rider allows the policy owner to
designate a Settlement Option to be used for the payment of Death Proceeds.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 4 -- Effective July 1, 2010
8
AMENDMENT 5
EFFECTIVE SEPTEMBER 7, 2010
TO THE
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
SWISS RE LIFE & HEALTH AMERICA INC. ("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to include Hartford Frontier
Indexed Universal Life and Hartford Frontier Indexed Universal Life Extended
Value Option as Base Policies under the Agreement, for policies issued on or
after the effective date of this Amendment.
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
1. The above recitals are true and accurate and are incorporated herein.
2. Schedule A is deleted in its entirety and replaced with the attached revised
Schedule A.
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 5 -- Effective September 7, 2010
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of September 7, 2010.
SWISS RE LIFE & HEALTH AMERICA INC.
By: /s/ [ILLEGIBLE] Attest: /s/ [ILLEGIBLE]
------------------------------ ------------------------------
Name: [ILLEGIBLE] Name: [ILLEGIBLE]
Title: Vice President Title: Vice President
Date: 10/21/2010 Date: 10/21/10
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxxx Xxxxxxxxx Attest: /s/ Xxxx Xxxxxxx
------------------------------ ------------------------------
Name: Xxxxxxx Xxxxxxxxx FSA, MAAA Name: Xxxx Xxxxxxx, FSA, MAAA
Title: Asst. Vice President and Title: Asst. Vice President and
Actuary Actuary
Individual Life Product Individual Life Product
Management Management
Date: 11/11/2010 Date: 11-11-2010
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 5 -- Effective September 7, 2010
2
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE SEPTEMBER 7, 2010
SINGLE LIFE PLANS OF INSURANCE
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE*
---------------------------------------------------------------------------------------
Stag UL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Bicentennial UL Founders 2001 CSO M/F S/NS Ultimate ANB A
Hartford UL CV 1980 CSO M/F S/NS Ultimate ALB A
Stag Wall Street VUL 1980 CSO M/F S/NS Ultimate ALB A
Stag Protector II VUL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Leaders VUL Legacy 2001 CSO M/F Composite Ultimate ANB A
Stag Accumulator II VUL 1980 CSO M/F Unismoke Ultimate ALB A
Hartford Leaders VUL Liberty (a) 1980 CSO M/F Unismoke Ultimate ANB A
Hartford Leaders VUL Liberty (b) 2001 CSO M/F Composite Ultimate ANB A
Life Solutions II UL (a) 1980 CSO M/F S/NS Ultimate ALB A
Life Solutions II UL (b) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Advanced Universal Life 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Freedom (a) 2001 CSO M/F S/NS Ultimate ANB B
Hartford Bicentennial UL Freedom (b) 2001 CSO M/F S/NS Ultimate ANB A
Hartford Quantum II VUL (a) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Quantum II VUL (b) 2001 CSO M/F S/NS Ultimate ANB A
Hartford Extraordinary Whole Life (a) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Extraordinary Whole Life (b) 2001 CSO M/F S/NS Ultimate ANB A
Hartford Bicentennial UL Founders II 2001 CSO M/F S/NS Ultimate ANB A
Hartford Bicentennial UL Founders II 2001 CSO M/F S/NS Ultimate ANB A
Extended Value Option
Annually Renewable Term (ART) 2001 CSO M/F S/NS Ultimate ANB C
Hartford Frontier Indexed Universal Life 2001 CSO M/F S/NS Ultimate ANB A
Hartford Frontier Indexed Universal Life
Extended Value Option 2001 CSO M/F S/NS Ultimate ANB A
------------
* NAR Type is described in Schedule B.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 5 -- Effective September 7, 2010
3
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE SEPTEMBER 7, 2010
SINGLE LIFE PLANS OF INSURANCE
RIDERS PROVIDING DEATH BENEFITS THAT ARE RIDERS THAT PROVIDE ADDITIONAL BENEFITS
ELIGIBLE FOR REINSURANCE: BUT THAT ARE NOT ELIGIBLE FOR REINSURANCE:
------------------------------------------------------------------------------------
Accidental Death Benefit (ADB) Rider
Primary Insured Term Rider Accelerated Benefit Rider (ABR)
Other Covered Insured Term Life Rider LifeAccess Accelerated Ben. Rider (LAABR)
Cost of Living Adjustment (COLA) Rider Policy Continuation Rider
NOTE: NAR Type for term riders above is Policy Protection Rider (PPR)
C.
For COLA Rider, NAR Type follows Enhanced No Lapse Guarantee Rider
Base Policy to which it is attached. Lifetime No Lapse Guarantee Rider
Guar. Min. Accum. Benefit (GMAB) Rider
Paid-Up Life Insurance Rider
Conversion Option Rider
Overloan Protection Rider
Waiver of Specified Amount (WSA) Rider
Waiver of Monthly Deductions (WMD) Rider
Children's Life Insurance Rider
Foreign Travel Exclusion Rider
Estate Tax Repeal Benefit Rider
Modified Surrender Value Rider
Cash Surrender Value Endorsement
Automatic Premium Payment Rider
Additional Premium Rider
Qualified Plan Rider
Owner Designated Settlement Option Rider
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 5 -- Effective September 7, 2010
4
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE SEPTEMBER 7, 2010
Rider Descriptions (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Primary Insured Term Rider: Provides additional level term life coverage on the
base policy insured.
Other Covered Insured Term Life Rider: Provides level term life coverage on an
insured other than the base policy insured.
Cost of Living Adjustment (COLA) Rider: Provides for biennial face amount
increases, without underwriting, based on increases in the Consumer Price Index.
The maximum amount of any single increase is $50,000. Any increase can be
declined by the policyholder, which stops future increases. Available only at
issue and only for non-substandard issue ages 0 through 60.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Accidental Death Benefit Rider: Pays an additional death benefit if the death on
the insured is caused by a qualifying accident.
Accelerated Benefit Rider: Provides the policyholder up to 100% of the death
benefit, discounted with interest, if the insured's life expectancy is 12 months
or less. After acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
LifeAccess Accelerated Benefit Rider (LAABR): Provides for monthly benefits (up
to 2% of death benefit) if insured meets certain ADL and home-care requirements.
During and after acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
Policy Continuation Rider: Intended to prevent the lapse of highly loaned
policies.
Policy Protection Rider: Protects the death benefit of the base policy and any
primary insured term rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Enhanced No Lapse Guarantee Rider: Provides that the policy will not lapse as
long as cumulative premiums paid less indebtedness and less withdrawals are
greater than or equal to the cumulative no lapse guarantee premiums. Length of
guarantee varies by issue age.
Lifetime No Lapse Guarantee Rider: Same as Enhanced No Lapse Guarantee Rider but
with lifetime guarantee.
Guaranteed Minimum Accumulation Benefit (GMAB) Rider: Provides, at the end of
the GMAB Guarantee Period (usually 20 years), that the policy Account Value will
be increased, if necessary, to equal the sum of gross premiums paid to that
date. There is a small monthly charge and a minimum cumulative premium
requirement to keep the rider in force.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 5 -- Effective September 7, 2010
5
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE SEPTEMBER 7, 2010
Paid-Up Life Insurance Rider: Similar to the GMAB rider, with the same Guarantee
Period, a monthly charge, and a cumulative premium requirement. At end of the
Guarantee Period, the owner may elect to change coverage to paid-up life using
the Account Value as a 5% NSP to determine the amount of coverage; however, the
amount of coverage will never be lower than the sum of gross premiums paid to
that date. Once elected, premiums are no longer payable.
Conversion Option Rider: During certain policy years and prior to the insured's
attained age 70, the policy may be converted, without evidence of insurability,
to any permanent plan of life insurance the Ceding Company then makes available
for conversions of this policy.
Overloan Protection Rider: Protects a policy from terminating due to overloan.
Waiver of Specified Amount (WSA) Rider: Waives a specified amount monthly while
the insured is disabled.
Waiver of Monthly Deductions (WMD) Rider: Waives monthly deduction amounts while
the insured is disabled.
Children's Life Insurance Rider: Provides level term life coverage for each
child of the insured.
Foreign Travel Exclusion Rider: Provides a limited death benefit (Account Value
less indebtedness) if the insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
Estate Tax Repeal Benefit Rider: Pays the policy Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Modified Surrender Value Rider: Changes the Cash Surrender Value definition (to
equal the Account Value) if the policy is surrendered within 3 years after the
policy issue date.
Cash Surrender Value Endorsement: Provides for enhanced Cash Surrender Value
(equal to the current Account Value) in the event of policy surrender in the
first 4 policy years, unless the policy is exchanged under Section 1035 to
another company's policy.
Automatic Premium Payment Rider: Provides for any Scheduled Premium due and
unpaid by the end of any Policy Grace Period to be paid by an automatic
deduction from the Account Value, if the Account Value exceeds the Guaranteed
Cash Value.
Additional Premium Rider: Allows additional premium amounts to be paid at the
same payment intervals as scheduled premiums.
Qualified Plan Rider: This rider indicates that the policy is owned by a
qualified plan, details the policy owner's reporting responsibilities to The
Hartford, and describes features and activities that are unavailable when the
policy is owned by a Qualified Plan.
Owner Designated Settlement Option. This rider allows the policy owner to
designate a Settlement Option to be used for the payment of Death Proceeds.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 5 -- Effective September 7, 2010
6
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE SEPTEMBER 7, 2010
LAST SURVIVOR PLANS OF INSURANCE
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE*
------------------------------------------------------------------------------------------
Hartford Leaders VUL Joint Legacy 2001 CSO M/F S/NS Ultimate ALB A
Hartford Leaders VUL Joint Legacy II 2001 CSO M/F S/NS Ultimate ANB A
Hartford Advanced Last Survivor UL 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Joint Freedom 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Joint Freedom 2001 CSO M/F S/NS Ultimate ANB B
II (a)
Hartford Bicentennial UL Joint Freedom 2001 CSO M/F S/NS Ultimate ANB A
II (b)
------------
* NAR Type is described in Schedule B
RIDERS PROVIDING DEATH BENEFITS THAT ARE RIDERS THAT PROVIDE ADDITIONAL BENEFITS
ELIGIBLE FOR REINSURANCE BUT THAT ARE NOT ELIGIBLE FOR REINSURANCE:
------------------------------------------------------------------------------------
Estate Protection Rider (NAR Type is C) LS Exchange Option Rider
Policy Protection Rider
Estate Tax Repeal Rider
Foreign Travel Exclusion Rider
Guar. Min. Accum. Benefit (GMAB) Rider
Paid-Up Life Insurance Rider
Owner Designated Settlement Option
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Estate Protection Rider: This rider provides last survivor level term life
insurance on the base policy insureds for three years.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
LS Exchange Option Rider: Allows a Last Survivor policy to be split into two
Single Life policies, without new evidence of insurability, if divorce, business
dissolution, or estate-tax repeal or reduction occurs. The face amount of each
new Single Life policy will equal one half of the Last Survivor policy face
amount. Upon a split, reinsurance will continue at point-in-scale rates for each
single life, as documented in Section X.C. (This rider is not available when one
of the insureds is uninsurable or above Table H.)
Policy Protection Rider: Protects the death benefit of the base policy and any
Estate Protection Rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 5 -- Effective September 7, 2010
7
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE SEPTEMBER 7, 2010
Estate Tax Repeal Rider: This rider will pay the Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Foreign Travel Exclusion: Provides a limited death benefit (Account Value less
indebtedness) if either insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
GMAB Rider and Paid-Up Life Insurance Rider: Same as Single Life riders.
Owner Designated Settlement Option. This rider allows the policy owner to
designate a Settlement Option to be used for the payment of Death Proceeds.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 5 -- Effective September 7, 2010
8
AMENDMENT 6
EFFECTIVE OCTOBER 1, 2008
TO THE
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM
REINSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
SWISS RE LIFE & HEALTH AMERICA INC. ("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 Section III.A.1 to
indicate that the insured must satisfy only one of the requirements listed; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
correct Section III. A.6
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 outline how Reinsurance
Premiums will be calculated in the event of a specific option's election under
the Conversion Option Rider; and
WHEREAS, the Ceding Company and the Reinsurer wish to confirm the Reinsurer's
liability for policy increases not subject to new underwriting; 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 correct drafting errors in
Schedule F; and
WHEREAS, the Ceding Company and the Reinsurer wish to replace Exhibit VII to
reflect updated definitions and references.
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. Article III is hereby deleted in its entirety and replaced with the
attached, revised Article III.
3. Section IV.E is hereby deleted in its entirety and replaced with the
following Section IV.E:
Allocated Retention Pool -- Effective 10/1/2008
Between HLAIC and Swiss Re
Amendment #6 -- Effective 10/1/2008
1
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 or
later as a result of the full acceleration of the death benefit.
4. Article X is hereby deleted in its entirety and replaced with the attached,
revised Article X.
5. Schedule B is hereby deleted in its entirety and replaced with the attached,
revised Schedule B.
6. Schedule F is hereby deleted in its entirety and replaced with the attached,
revised Schedule F.
7. Exhibit VII is hereby deleted in its entirety and replaced with the
attached, revised Exhibit VII.
8. Except as herein amended, all other terms and conditions of the Agreement
shall remain in full force and effect and unchanged.
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below.
SWISS RE LIFE & HEALTH AMERICA INC.
By: /s/ Xxxxxx Xxxx Attest: /s/ Xxxx Xxxxx
------------------------------ ------------------------------
Name: Xxxxxx Xxxx Name: Xxxx Xxxxx
Title: Vice President Title: Assistant Vice President
Date: 7/25/2011 Date: 7/25/2011
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: 8/3/2011 Date: 8/5/2011
Allocated Retention Pool -- Effective 10/1/2008
Between HLAIC and Swiss Re
Amendment #6 -- Effective 10/1/2008
2
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.
Once coverage is reinsured on a life under this Agreement, unless the Reinsurer
consents, such consent not to be unreasonably withheld, the Ceding Company or
its affiliate shall continue to retain its share of each risk on that life, as
described in this Agreement and in any other life reinsurance agreement
applicable to risk on that life. Any changes to the Ceding Company's retention,
and any resulting effect on the Automatic Binding Limits, as specified in
Exhibit II, shall be made by amendment to this Agreement, in accordance with
Section I.B.
Each reinsured risk must be issued with a suicide and contestable period equal
to the minimum of (a) two (2) years, (b) the maximum period allowed by
applicable law, or (c) a period agreed to in writing by the Reinsurer.
A. Automatic Reinsurance
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; 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.
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 the
Reinsurance Premium based on the True Assessed Risk Class; or
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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 any risk that is not an Excess Risk, if the Ceding Company submitted any
risk on a life of a proposed insured facultatively to the Reinsurer during the
last three (3) years:
a. for reinsurance capacity, then the Ceding Company shall confirm
the Reinsurer's available capacity for such risk. Upon receipt of
the request, the Reinsurer shall advise the Ceding Company of its
available capacity for the life on the same or next following
business day. After the Reinsurer has advised the Ceding Company
of its available capacity, provided all the other requirements for
Automatic Reinsurance under this Agreement are met, the Ceding
Company may cede to the Reinsurer no more than such amount on an
automatic basis; or
b. for reasons other than reinsurance capacity, and the Reinsurer's
assessment of the risk so submitted was:
(1) the same as, or more favorable than, the Ceding Company's
assessment at that time, then, provided all the other
requirements for Automatic Reinsurance under this Agreement
are met, the Ceding Company may cede the risk under this
Agreement on an automatic basis at its True Assessed Risk
Class; or
(2) less favorable than the Ceding Company's assessment at that
time, then, provided all the other requirements for Automatic
Reinsurance under this Agreement are met, the Ceding Company
may provisionally cede the risk under this Agreement on an
automatic basis at its True Assessed Risk Class, provided the
Ceding Company then submits the risk to the Reinsurer for
review in accordance with Section V.E;
otherwise, provided all the other requirements for Automatic Reinsurance under
this Agreement are met, the Ceding Company shall cede the risk under this
Agreement on an automatic basis.
For any risk that is an Excess Risk, 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. For any Excess Risk, the total amount of risk on that life to be reinsured
in the Automatic Pool and under any other individual life reinsurance agreement
with any reinsurer does not exceed the Automatic Binding Limit for that life
shown in Exhibit II.
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7. For any Excess Risk, the total amount of insurance on each life, in force
and applied for in all companies does not exceed the Jumbo Limits as set forth
in Exhibit II. For any such life, the total amount of insurance in force
includes any amount(s) to be replaced. For the Ceding Company's in-force and
applied-for policies on such life, this total amount of insurance includes all
scheduled increases in amount of insurance on such policies.
Any amounts of insurance being replaced by the Ceding Company may be deducted
from this total amount of insurance only under the following conditions:
a. Existing permanent insurance is being replaced by the Ceding
Company, with or without a Section 1035 exchange, and the Ceding
Company has obtained a duly executed absolute assignment of the
insurance being replaced; or
b. Existing term insurance is being replaced by the Ceding Company,
and the Ceding Company has obtained a duly executed absolute
assignment of the insurance being replaced; or
c. An internal replacement is being made, where the Ceding Company is
replacing an in-force policy with a new policy of equal or greater
death benefit.
When the total amount 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. 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 policy is later effected during the lifetime of the insured, 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 from that
effective date of cancellation.
For any risk that is not an Excess Risk but where the total amount of in-force
and applied-for coverage on the life (if last survivor, on either life) with all
companies exceeds the applicable Jumbo Limit for that life, the Jumbo Limit will
not apply, however, the Ceding Company shall notify the Reinsurer of the risk at
the time the coverage is issued.
8. The Ceding Company, or its affiliates, accepts its full retention on each
life, as described in this Agreement, taking into account concurrently issued
amounts and all other inforce policies with the Ceding Company, applicable to
risk on that life.
9. To the best of the Ceding Company's knowledge, the policy is not a
stranger-owned life insurance policy (STOLI) or purchased as part of a premium
financing program, except for those programs specified in Schedule E or approved
in writing by the Reinsurer.
10. If all the other requirements for Automatic Reinsurance are met and the
life is a player or coach on a team in the National Hockey League, the National
Football League, the National Basketball Association or Major League Baseball,
and:
a. The risk is not an Excess Risk, then the Ceding Company shall
notify the Reinsurer of this fact at the time of issue of the
risk; or
b. The risk is an Excess Risk, then, prior to ceding the risk
automatically under this Agreement, the Ceding Company must
confirm the Reinsurer's available capacity for
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that risk. The Ceding Company, by telephone call or
electronic mail, shall: (i) notify the Reinsurer's Chief
Underwriter, or designee, of the life's name, date of birth,
sport and team affiliation, the total life insurance in
force and to be placed on the life, and the amount of new
reinsurance coverage required from the Reinsurer; and (ii)
confirm that an application for insurance on the life has
been completed. The Reinsurer shall endeavor to inform the
Ceding Company of its available capacity for the risk within
two business days after such notification and confirmation.
After the Reinsurer has advised the Ceding Company of the
amount of its available capacity, the Ceding Company may
then cede to the Reinsurer no more than that amount on an
automatic basis under this Agreement.
11. The policy is not an Annual Renewable Term policy.
B. Automatic Processing
If the requirements for Automatic Reinsurance are met for a life except for the
requirement stated above in Section A.6, but the total amount of risk on that
life to be reinsured in the Automatic Pool and under any other individual life
reinsurance agreement with any reinsurer does not exceed the Automatic
Processing Limit for that life shown in Exhibit II, then the Ceding Company may
submit to the Lead Reinsurer (designated in Schedule B) all information relating
to the insurability of that life. For Last Survivor policies where one life is
deemed uninsurable, only the information for the other life needs to be
submitted.
The Lead Reinsurer shall review the submitted information to determine if the
life should be reinsured by the Automatic Pool and, if so, on what basis. The
Lead Reinsurer shall endeavor to provide the Ceding Company with a response
within 72 hours of receipt of such information. Approval by the Lead Reinsurer
shall be binding on all other current Automatic Pool reinsurers. This process
shall be known as Automatic Processing and shall be subject to Exhibit II.
Hereinafter, all references to Automatic Reinsurance, coverage automatically
reinsured, and the Automatic Pool will include coverage reinsured through
Automatic Processing.
C. Facultative Reinsurance
If the requirements for Automatic Reinsurance are not met and the Ceding Company
applies for Facultative Reinsurance with the Reinsurer, or if the requirements
for Automatic Reinsurance are met but the Ceding Company prefers to apply for
Facultative Reinsurance with the Reinsurer, then the Ceding Company shall submit
to the Reinsurer sufficient evidence agreed upon between the Ceding Company and
the Reinsurer, relating to the insurability of each life submitted for
Facultative Reinsurance. For Last Survivor policies where one life is deemed
uninsurable, only the information for the other life needs to be submitted.
The Reinsurer shall promptly notify the Ceding Company 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
accepted and coverage is placed.
Once the Ceding Company has notified the Reinsurer in writing of its acceptance
of the Reinsurer's final underwriting offer, then Facultative Reinsurance for
the risk under this Agreement will become effective as described below in
Section IV.B.
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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, utilizing the Annual Rates per $1,000 of Reinsured Net
Amount at Risk as set forth in Exhibit III.
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 the provisions
of Article III shall apply to the increase in reinsurance and
Reinsurance Premiums for the increase shall be based on
new-business rates.
Notwithstanding the foregoing, after termination of this
Agreement for new business, any increases subject to full
underwriting must be submitted to the Reinsurer on a facultative
obligatory basis, if, the increase in face amount is in excess of
one million dollars ($1 million); or
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.
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Reinsurance Premiums for increases not subject to full
underwriting shall be calculated on a point-in-scale basis,
utilizing the Annual Rates per $1,000 of Reinsured Net Amount at
Risk as set forth in Exhibit III.
For increases in accordance with B.1.b (1), 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. 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. Reinsurance Premiums for exchanges from one
single life policy reinsured under this Agreement to a different single life
policy will be calculated on a point-in-scale basis using Annual Rates per
$1,000 of Reinsured Net Amount at Risk, as set forth in Exhibit III. Likewise,
Reinsurance Premiums for exchanges from one last survivor policy reinsured under
this Agreement to a different last survivor policy will be calculated on a
point-in-scale basis using Annual Rates per $1,000 of Reinsured Net Amount at
Risk, as set forth in Exhibit III. Reinsurance Premiums for 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 calculated at the applicable single life point-in-scale
Annual Rates per $1,000 of Reinsured Net Amount at Risk, as set forth in Exhibit
III. 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,
utilizing the Annual Rates per $1,000 of Reinsured Net Amount at Risk as set
forth in Exhibit III.
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.
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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 of
this Article.
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.
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 will be subject to the
Reinsurer's approval. On Automatic Reinsurance, the Reinsurer will accept this
change if the change qualifies under the underwriting practices and guidelines
described in Schedules C, D, or E, as applicable.
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H. Rescission of Policy Coverage Prior to Death Claim
1. 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.
2. The Ceding Company shall promptly notify the Reinsurer in the event a
rescission is challenged by legal action. The Ceding Company shall also furnish
all information material to such action.
Recognizing the urgent nature of these communications, within ten (10) business
days of receipt of such information, the Reinsurer shall notify the Ceding
Company in writing of the Reinsurer's decision whether or not it shall
participate in the legal and investigation expenses associated with the defense
of the rescission. The Reinsurer may extend the ten-day 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 ten-day period. If the Reinsurer does not
respond to the Ceding Company within the timeframe above, the Reinsurer will be
deemed to have elected to participate in the legal and investigation expenses
associated with the defense of the rescission.
3. 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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SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
AUTOMATIC REINSURANCE: The Ceding Company shall retain its available retention
on each risk, defined below as the Retained Net Amount at Risk, subject to the
applicable Ceding Company's Treaty Retention Limit shown in Exhibit II.
The Reinsurer will automatically reinsure a portion of the remainder of the
risk, called the Reinsured Net Amount at Risk, as defined below in this Schedule
B.
FACULTATIVE REINSURANCE: The Reinsurer will reinsure X% (as determined at issue)
of the Total Net Amount at Risk for the risk.
TOTAL ALLOCATION LIMIT (TAL): As shown in Exhibit II.
CEDING COMPANY'S TREATY RETENTION LIMIT (CCTRL): As shown in Exhibit II.
CEDING COMPANY'S ALLOCATED RETENTION (CCAR): As shown in Exhibit II.
CURRENT RETENTION (CURRRET) = Current amount of life insurance retained by the
Ceding Company and its affiliated companies on the life for in-force life
insurance coverage. (For Last Survivor risks, see the Last Survivor Limits and
Retention Worksheet in Exhibit II.)
REINSURER'S ALLOCATED RETENTION (REINSARET): As shown in Exhibit II.
REINSURER'S ATTACHMENT POINT (REINSAPT): As shown in Exhibit II.
NAR TYPE for the Plan of Insurance to be reinsured under this Agreement, as
shown in Schedule A.
STEP 1 -- DETERMINE TOTAL NET AMOUNT AT RISK FOR THE COVERAGE*
TOTAL NET AMOUNT AT RISK (TOTNAR) =
For NAR TYPE A, Death Benefit minus the Account Value.
For NAR TYPE B, Death Benefit minus the Working Reserve, where
Working Reserve = (i) x (ii) / (iii), and
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SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
* 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 1 -- DETERMINE TOTAL NET AMOUNT AT RISK FOR THE COVERAGE* (CONTINUED)
For NAR TYPE C, Death Benefit.
STEP 2 -- DETERMINE NET AMOUNT AT RISK FOR EACH "LAYER" OF COVERAGE
STEP 3 -- DETERMINE THE NAR FOR THE CEDING COMPANY AND THEN FOR THE REINSURER
REINSURER'S QUOTA SHARE PERCENTAGE FOR NAR3 (REINSQS3%)
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SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
MINIMUM REINSURANCE APPLICATION: [Redacted]
LEAD REINSURER: Swiss Re Life & Health America Inc.
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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
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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.
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EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
REPORT ACCOUNTING PERIOD DUE DATE
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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
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* Policy record details for new business, renewal business, and changes and
terminations (Reports 1, 2, and 3 above) may be reported as separate reports
or combined into one report, provided the required data elements continue to
be satisfied.
REPORTING SYSTEM:
The system used by the Ceding Company to administer its reinsurance is: XXX.
NOTE:
Certain policy transactions, such as increases, are coded in the policy
administration system as riders, although they do not correspond to filed rider
forms.
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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 -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 6 -- Effective 10/01/2008
16
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Joint Age Used for joint coverages using a joint equivalent age
for rate searches.
Auto/Fac Indicator Indicates whether the policy is ceded on an Automatic
or Facultative basis.
Death Benefit Option This field contains the option chosen by the insured
for death proceeds payment.
Participation code This field indicates whether the business is Non
Participating (N) or Participating (P).
Issue Type Identifies how a cession was issued. (New business or
Continuation)
Underwriting Method Identifies the type of underwriting used to issue the
coverage.
Treaty Number This field contains the TAI system treaty number
Reinsurance Type This field is a one-character code that identifies the
type of reinsurance. (Y=YRT, C=Coinsurance & M=Modco.)
Plan This field contains the coverage plan code.
Product code This field contains the product type code.
Product code 1 For Joint Life policies, this field contains the
product type code for Insured 1.
Product code 2 For Joint Life policies, this field contains the
product type code for Insured 2. (If this is not a
Joint Life policy, this field will be blank.)
Currency Code This field identifies the currency. (USD or CND if
applicable)
Last Name -- 1 This field contains the insured's last name. For Joint
Life policies, this field contains the last name for
Insured 1. (Maximum of 20 characters)
First Name -- 1 This field contains the insured's first name. For
Joint Life policies, this field contains the first
name for Insured 1. (Maximum of 15 characters)
Middle Initial -- 1 This field contains the insured's middle initial. For
Joint Life policies, this field contains the middle
initial for Insured 1. (1 character)
Client ID -- 1 This field contains the unique client ID for an
insured used to connect lives when calculating
retention on a life. For Joint Life policies, this
field indicates the client ID for Insured 1. (Maximum
of 20 characters)
Insured Status -- 1 This field indicates the insured's coverage status.
For Joint Life policies, this field indicates the
insured's coverage status for Insured 1.
DOB -- 1 This field contains the insured's date of birth. For
Joint Life policies, this field contains the date of
birth for Insured 1.
Sex -- 1 This field is used to identify the sex of the insured.
For Joint Life policies, this field contains the sex
of Insured 1.
Pricing Sex -- 1 This field contains the sex used to compute premiums
and allowances. For Joint Life policies, this field
contains the pricing sex of Insured 1.
Age -- 1 This field contains the insured's issue age. For Joint
Life policies, this field contains the issue age for
insured 1.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 6 -- Effective 10/01/2008
17
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
-- 1 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 -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 6 -- Effective 10/01/2008
18
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
-- 2 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 -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 6 -- Effective 10/01/2008
19
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 Company original policy. (Used for conversions only.)
Continuation This field indicates the policy number for the
Original Policy original 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 Allowance This field contains the reinsurance policy fee
allowance.
Location Code Hartford does not currently use. Defaults to spaces.
Treaty Reference Upon request, this field contains the Reinsurer's
Number treaty number.
Claim Hartford does not currently use. Defaults to spaces.
Policy Status This field identifies the status of the cession.
Policy Master Smoker Policy smoker class on direct policy. For Joint Life
-- 1 policies, this field contains the policy master smoker
class for Insured 1.
Policy Master Smoker Policy smoker class on direct policy. For Joint Life
-- 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 -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 6 -- Effective 10/01/2008
20
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
POLICY EXHIBIT FILE*
Company Identifies the Ceding Company.
Policy Policy number which is part of the policy key.
Coverage/rider Coverage number which is part of the policy key. This
number is used to identify a specific policy coverage.
Cession ID This field contains the number assigned to this
cession by the Reinsurer.
Line of Business This field indicates the line of business the policy
falls under.
Report Date This is the month the transaction was reported.
Reinsurance Company Two character reinsurance company ID code that
identifies the Reinsurer.
Reporting Company Identifies the company used for reporting purposes.
Will be the same as the Reinsurance Company.
Treaty Number This field contains the TAI system treaty number.
Transaction Type Identifies the type of transaction being reported on
the Transaction extract.
Policy Count Each New Business, Continuation & Reinstatement will
be assigned a count of 1, Terminations will be
assigned -- 1 and Renewals/NAR changes will be
assigned 0.
Base Ceded Amount This field contains the policy base amount ceded.
ADB ceded Amount This field contains the policy ADB amount ceded.
Waiver Ceded Amount This field contains the policy waiver amount ceded.
Net Amount at Risk The reinsured net amount at risk (NAR).
Plan This field contains the coverage plan code.
Auto/Fac Indicator Indicates whether the policy is ceded on an Automatic
or Facultative basis.
Reinsurance Type This field is a one-character code that identifies the
type of reinsurance. (Y=YRT, C=Coinsurance & M=Modco.)
Currency Code This field identifies the currency. (USD or CND if
applicable)
------------
* The Policy Exhibit will include a summary of reinsurance movement for a
given period categorized by transactions type. This summary provides the
Cession Count, Ceded Amount and Net Amount at Risk at the beginning of the
reporting period, a summary of the transactions occurring during the report
period as well as what is in force as of the ending of the report period.
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 6 -- Effective 10/01/2008
21
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 -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 6 -- Effective 10/01/2008
22
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 -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 6 -- Effective 10/01/2008
23
AMENDMENT 7
EFFECTIVE SEPTEMBER 1, 2010
TO THE
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM
REINSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
SWISS RE LIFE & HEALTH AMERICA INC. ("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 confirm the Reinsurer's
coverage for policies issued under the Issue First policy issuance program.
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
1. The above recitals are true and accurate and are incorporated herein.
2. Article III is hereby amended to include the following paragraph following
Section III.A.:
Notwithstanding the above, all policies issued under the Issue First program
shall be deemed automatically reinsured. Issue First is a policy issuance
program administered by the Ceding Company, under which a policy can be issued
before the underwriting process has been completed.
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 -- Effective 10/01/2008
Between XXX and Swiss Re
Amendment 7 -- Effective 09/01/2010
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below.
SWISS RE LIFE & HEALTH AMERICA INC.
By: /s/ Xxxxxx Xxxx Attest: /s/ [ILLEGIBLE]
-------------------------------- --------------------------------
Name: Xxxxxx Xxxx Name: [ILLEGIBLE]
Title: Vice President Title: Assistant Vice President
Date: September 12, 2011 Date: September 12, 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: Asst. Vice President and Actuary Title: Senior Vice President
Individual Life Product Individual Life Product
Management Management
Date: 9/28/2011 Date: 9/28/2011
Allocated Retention Pool -- Effective 10/01/2008
Between XXX and Swiss Re
Amendment 7 -- Effective 09/01/2010
2
AMENDMENT 8
EFFECTIVE OCTOBER 1, 2008
TO THE
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
SWISS RE LIFE & HEALTH AMERICA INC. ("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 by the Ceding Company 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 (as
specified in Schedule F) and did not qualify for reinsurance under the
Agreement; and
- Now qualify for reinsurance under the Agreement because the surrender
processing has been completed by the Ceding Company.
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.
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 -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment # 8 -- 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.
SWISS RE LIFE & HEALTH AMERICA INC.
By: /s/ Xxxxxx Xxxx Attest: /s/ Xxxx Xxxxx
------------------------------ ------------------------------
Name: Xxxxxx Xxxx Name: Xxxx Xxxxx
Title: Vice President Title: Assistant Vice President
Date: 8/23/2011 Date: 8/23/2011
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxx Xxxxxxx Attest: /s/ Xxxxxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxx Xxxxxxx Name: Xxxxxxx Xxxxxx
Title: Assistant Vice President & Title: Senior Vice President &
Actuary Actuary
Date: 08/30/11 Date: 08/30/2011
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment # 8 -- Effective 10/1/2008
2
AMENDMENT 9
EFFECTIVE OCTOBER 3, 2011
TO THE
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
SWISS RE LIFE & HEALTH AMERICA INC. ("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
WHEREAS, the Ceding Company and the Reinsurer wish to revise Schedule A to
include the effective date on which each Base Policy and Rider was added to the
Agreement and to amend the description of certain Riders with such descriptions
being effective from the Effective Date shown for each on Schedule A.
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 -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 9 -- 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.
SWISS RE LIFE & HEALTH AMERICA INC.
By: /s/ Xxxxxx Xxxx Attest: /s/ Xxxx Xxxxx
-------------------------------- --------------------------------
Name: Xxxxxx Xxxx Name: Xxxx Xxxxx
Title: Vice President Title: Assistant Vice President
Date: 10/6/2011 Date: 10/6/2011
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 Product
Individual Life Product Management
Management
Date: 10/24/2011 Date: 10/24/2011
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 9 -- 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 UL Founders II 2001 CSO M/F S/NS Ultimate 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
Annually Renewable Term (ART) 2001 CSO M/F S/NS Ultimate ANB C 10/01/2008
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
Allocated Retention Pool -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 9 -- 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**
---------------------------------------------------------------------------
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
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 -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 9 -- 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 -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 9 -- 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 -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 9 -- 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 UL Joint Freedom 2001 CSO M/F S/NS Ultimate ALB B 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.
** 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 -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 9 -- 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 -- Effective 10/01/2008
Between HLAIC and Swiss Re
Amendment 9 -- Effective 10/03/2011
8
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM
REINSURANCE AGREEMENT
BETWEEN
HARTFORD LIFE INSURANCE COMPANY
(NAIC No. 88072)
(FEIN 00-0000000)
AND
SWISS RE LIFE & HEALTH AMERICA INC.
(NAIC No. 82627)
(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 10
VI. Reinsurance Premiums 11
VII. Reinsurance Reporting 14
VIII. Credit for Reinsurance 15
IX. Errors 17
X. Policy Conversions, Other Changes, and Terminations 18
XI. Policy Reinstatement 21
XII. Claims 22
XIII. Extra-Contractual Obligations 27
XIV. DAC Tax Section 1.848-2(g)(8) Election 27
XV. Insolvency 28
XVI. Recapture of Reinsured Business 29
XVII. Offset 30
XVIII. Dispute Resolution 30
XIX. Arbitration 31
XX. Termination of this Agreement for New Business 33
XXI. Confidentiality 33
XXII. General Provisions 35
XXIII. Notices and Communications 38
Execution 40
SCHEDULES
A. Plans of Insurance Covered Under this Agreement 41
B. Reinsurance Specifications 47
C. Foreign National Underwriting Program 49
D. Other Special Underwriting Programs 52
E. Ceding Company's Standard Underwriting Practices and 55
Guidelines
F. Policies Eligible for Reinsurance Under this Agreement 70
EXHIBITS
I. Reinsurance Premium Calculation 71
II. Retention, Binding, and Total Pool Issue Limits 75
III. Annual Rates per $1,000 of Reinsured Net Amount at Risk 79
IV. Allowance Percentages to be Applied to the Annual Rates 80
per $1,000
V. Substandard Table Percentages 81
VI. Conditional Receipt or Temporary Insurance Agreement 82
VII. Reinsurance Reports 86
ALL SCHEDULES AND EXHIBITS ATTACHED WILL BE CONSIDERED PART OF THIS REINSURANCE
AGREEMENT.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
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 Insurance Company, a Connecticut
corporation ("Ceding Company"), and Swiss Re Life & Health America Inc., a
Connecticut ("Reinsurer"). The Ceding Company and the Reinsurer are each
referred to individually as a "Party," and collectively as the "Parties," to
this Agreement.
This Agreement shall be binding upon the Ceding Company and the Reinsurer and
their respective successors and assignees.
The acceptance of risks under this Agreement will create no right or legal
relationship between the Reinsurer and the insured, owner, beneficiary, or
assignee of any insurance policy or other contract of the Ceding Company
B. Complete and Entire Agreement
This Agreement, which includes all Schedules and Exhibits attached hereto and
any amendments entered into hereafter, constitutes the entire agreement of the
Parties pertaining to the transaction contemplated by this Agreement. This
Agreement supersedes and replaces all oral and written agreements previously
made or existing by and between the Parties or their representatives with regard
to the transaction contemplated by this Agreement.
This Agreement shall not be amended or modified except by written amendment,
signed by duly authorized officers of each Party.
Routine communications are those communications contemplated by this Agreement
that are not intended to change any of its risk transfer characteristics. Such
communications may include, but are not limited to, reinsurance reporting and
premium administration, underwriting review, claim submission and review,
participation in claim litigation and settlements, audit reviews, and the
resolution of disputes by arbitration or court proceedings. These communications
serve to clarify the obligations of the Parties under this Agreement and should
not be construed as modifications of this Agreement. Any modifications of this
Agreement shall be effected only by written amendment as provided for above.
ARTICLE II
EFFECTIVE DATE
The Effective Date of this Agreement is October 1, 2008.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
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.
Once coverage is reinsured on a life under this Agreement, unless the Reinsurer
consents, such consent not to be unreasonably withheld, the Ceding Company or
its affiliate shall continue to retain its share of each risk on that life, as
described in this Agreement and in any other life reinsurance agreement
applicable to risk on that life. Any changes to the Ceding Company's retention,
and any resulting effect on the Automatic Binding Limits, as specified in
Exhibit II, shall be made by amendment to this Agreement, in accordance with
Section I.B.
Each reinsured risk must be issued with a suicide and contestable period equal
to the minimum of (a) two (2) years, (b) the maximum period allowed by
applicable law, or (c) a period agreed to in writing by the Reinsurer.
A. Automatic Reinsurance
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:
a. have been a legal resident of the United States or Canada for at
least six months;
b. be a citizen of the United States or Canada; or
c. qualify for the Foreign National Underwriting Program as specified
in Schedule C.
2. Each risk must be underwritten according to the Ceding Company's Standard
Underwriting Practices and Guidelines or one of the special underwriting
programs. The Ceding Company's Standard Underwriting Practices and Guidelines as
of the Effective Date are described in Schedule E, and the Ceding Company's
special underwriting programs as of the Effective Date are described in Schedule
C or Schedule D. Changes to such documents will be handled in accordance with
Section XXII.L.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
4
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 the
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 any risk that is not an Excess Risk, if the Ceding Company submitted any
risk on a life of a proposed insured facultatively to the Reinsurer during the
last three (3) years:
a. for reinsurance capacity, then the Ceding Company shall confirm the
Reinsurer's available capacity for such risk. Upon receipt of the
request, the Reinsurer shall advise the Ceding Company of its
available capacity for the life on the same or next following
business day. After the Reinsurer has advised the Ceding Company of
its available capacity, provided all the other requirements for
Automatic Reinsurance under this Agreement are met, the Ceding
Company may cede to the Reinsurer no more than such amount on an
automatic basis; or
b. for reasons other than reinsurance capacity, and the Reinsurer's
assessment of the risk so submitted was:
(1) the same as, or more favorable than, the Ceding Company's
assessment at that time, then, provided all the other requirements
for Automatic Reinsurance under this Agreement are met, the Ceding
Company may cede the risk under this Agreement on an automatic
basis at its True Assessed Risk Class; or
(2) less favorable than the Ceding Company's assessment at that time,
then, provided all the other requirements for Automatic
Reinsurance under this Agreement are met, the Ceding Company may
provisionally cede the risk under this Agreement on an automatic
basis at its True Assessed Risk Class, provided the Ceding Company
then submits the risk to the Reinsurer for review in accordance
with Section V.E;
otherwise, provided all the other requirements for Automatic Reinsurance under
this Agreement are met, the Ceding Company shall cede the risk under this
Agreement on an automatic basis.
For any risk that is an Excess Risk, 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
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
5
facultatively no longer applies.
4. The maximum issue age for each life is 85. For Last Survivor policies, the
minimum issue age is 18, for all other policies, the minimum age is 0.
5. The mortality rating on each life does not exceed Table P. However, for Last
Survivor policies, one life may be uninsurable if the other life does not exceed
Table F.
6. The total amount of risk on that life to be reinsured in the Automatic Pool
and under any other individual life reinsurance agreement with any reinsurer
does not exceed the Automatic Binding Limit for that life shown in Exhibit II.
7. For any Excess Risk, the total amount of insurance on each life, in force
and applied for in all companies does not exceed the Jumbo Limits as set forth
in Exhibit II. For any such life, the total amount of insurance in force
includes any amount(s) to be replaced. For the Ceding Company's in-force and
applied-for policies on such life, this total amount of insurance includes all
scheduled increases in amount of insurance on such policies.
Any amounts of insurance being replaced by the Ceding Company may be deducted
from this total amount of insurance only under the following conditions:
a. Existing permanent insurance is being replaced by the Ceding
Company, with or without a Section 1035 exchange, and the Ceding
Company has obtained a duly executed absolute assignment of the
insurance being replaced; or
b. Existing term insurance is being replaced by the Ceding Company, and
the Ceding Company has obtained a duly executed absolute assignment
of the insurance being replaced; or
c. An internal replacement is being made, where the Ceding Company is
replacing an in-force policy with a new policy of equal or greater
death benefit.
When the total amount 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. 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 policy is later effected during the lifetime of the insured, 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 from that
effective date of cancellation.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
6
8. The Ceding Company, or its affiliates, accepts its full retention on each
life, as described in this Agreement, taking into account concurrently issued
amounts and all other inforce policies with the Ceding Company, applicable to
risk on that life.
9. To the best of the Ceding Company's knowledge, the policy is not a
stranger-owned life insurance policy (STOLI) or purchased as part of a premium
financing program, except for those programs specified in Schedule E or approved
in writing by the Reinsurer.
10. If all the other requirements for Automatic Reinsurance are met and the
life is a player or coach on a team in the National Hockey League, the National
Football League, the National Basketball Association or Major League Baseball,
and:
a. The risk is not an Excess Risk, then the Ceding Company shall notify
the Reinsurer of this fact at the time of issue of the risk; or
b. The risk is an Excess Risk, then, prior to ceding the risk
automatically under this Agreement, the Ceding Company must confirm
the Reinsurer's available capacity for that risk. The Ceding Company,
by telephone call or electronic mail, shall: (i) notify the
Reinsurer's Chief Underwriter, or designee, of the life's name, date
of birth, sport and team affiliation, the total life insurance in
force and to be placed on the life, and the amount of new reinsurance
coverage required from the Reinsurer; and (ii) confirm that an
application for insurance on the life has been completed. The
Reinsurer shall endeavor to inform the Ceding Company of its
available capacity for the risk within two business days after such
notification and confirmation. After the Reinsurer has advised the
Ceding Company of the amount of its available capacity, the Ceding
Company may then cede to the Reinsurer no more than that amount on an
automatic basis under this Agreement.
B. Automatic Processing
If the requirements for Automatic Reinsurance are met for a life except for the
requirement stated above in Section A.6, but the total amount of risk on that
life to be reinsured in the Automatic Pool and under any other individual life
reinsurance agreement with any reinsurer 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.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
7
C. Facultative Reinsurance
If the requirements for Automatic Reinsurance are not met and the Ceding Company
applies for Facultative Reinsurance with the Reinsurer, or if the requirements
for Automatic Reinsurance are met but the Ceding Company prefers to apply for
Facultative Reinsurance with the Reinsurer, then the Ceding Company shall submit
to the Reinsurer sufficient evidence agreed upon between the Ceding Company and
the Reinsurer, relating to the insurability of each life submitted for
Facultative Reinsurance. For Last Survivor policies where one life is deemed
uninsurable, only the information for the other life needs to be submitted.
The Reinsurer shall promptly notify the Ceding Company 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
accepted and coverage is placed.
Once the Ceding Company has notified the Reinsurer in writing of its acceptance
of the Reinsurer's final underwriting offer, then Facultative Reinsurance for
the risk under this Agreement will become effective as described below 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 True Assessed Risk Class does not exceed Table F (or a
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combination of flat extra and table assessment equivalent to Table F) and was
not a decline (if it was a decline, the Reinsurer would have no liability for
such coverage except as described below in Paragraph 5); and
3. There is no coverage in effect on the life in the Automatic Pool through any
other Insurance Receipt having an effective date preceding, or the same as, the
effective date of such coverage; and
4. If such coverage is on a risk that also exceeds either the Automatic Binding
Limit or the Jumbo Limit for the risk as shown in Exhibit II, then the
Reinsurer's liability for such excess amount of coverage will be limited by the
Reinsurer's available capacity; and
5. If the Ceding Company has accepted any final underwriting offer(s) for
Facultative Reinsurance on the risk (whether such offer is made by the
Reinsurer, as described above in Section III.C, or by any other reinsurer(s)),
then the Reinsurer's liability for such coverage under the Insurance Receipt
will be equal to:
a. The amount of coverage in effect under the terms of the Insurance
Receipt; multiplied by
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.
G. Notwithstanding Section III.A.9, the Reinsurer shall be liable for any
stranger-owned life insurance (STOLI) or premium-financed cases that are
undisclosed or misrepresented to the Ceding Company and that are discovered
after a risk has been made effective, unless and until such risk is successfully
rescinded under Article X.H.
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ARTICLE V
UNDERWRITING
A. 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.
B. For any risk ceded automatically under this Agreement, the Ceding Company
shall provide to the Reinsurer all information in its possession, reasonably
requested by the Reinsurer that was used in underwriting and assessing the risk.
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.
C. For any risk reviewed by the Reinsurer where the Reinsurer's assessment of
the risk differs materially from that of the Ceding Company, the Parties shall
work together in good faith to develop a mutually agreeable risk assessment that
shall be used to calculate the Reinsurance Premiums for that risk from the
beginning of the Reinsurer's liability for such risk under this Agreement. If
the Parties cannot settle on a mutually agreeable risk assessment within a
reasonable time period, they shall submit the risk for expedited arbitration
under Article XIX. If the expedited arbitration process determines that the risk
should have been declined, the Reinsurer will have no liability for such risk.
D. Any unintentional or accidental failure of the Ceding Company to adhere to
the underwriting practices and guidelines described in Schedule C, D, or E, as
applicable, in the assessment of risks, resulting from an oversight or clerical
error by the Ceding Company shall not be grounds for denying reinsurance
coverage on a risk. In such cases, the Parties shall work together in good faith
to develop a mutually agreeable risk assessment that shall be used to calculate
the Reinsurance Premiums for that risk from the beginning of the Reinsurer's
liability for such risk under this Agreement. Notwithstanding the foregoing,
grossly negligent acts, of the Ceding Company, recurring material errors or
material errors that are part of a pattern evidencing a disregard for the
underwriting practices and guidelines described in Schedules C, D, or E, as
applicable, may be grounds for denying reinsurance coverage on a risk.
E. For any risk provisionally ceded in accordance with Section III.A.3.b (2),
the Ceding Company shall submit the risk to the Reinsurer for review as soon as
the coverage is placed. If the Reinsurer's assessment of the risk is:
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1. not more than two rating tables less favorable than the Ceding Company's
assessment, then:
a. the Reinsurer shall accept the risk automatically at the Ceding
Company's True Assessed Risk Class; and
b. this submission of the risk to the Reinsurer will not be considered a
facultative submission for any future risks on the proposed
insured(s); or
2. more than two rating tables less favorable than the Ceding Company's
assessment but still currently insurable (that is, not a "decline" or "postpone"
assessment), then:
a. the Ceding Company may either:
(1) accept the Reinsurer's risk assessment to calculate the
Reinsurance Premiums for the risk from the beginning of the
Reinsurer's liability for the risk under this Agreement; or
(2) decide not to reinsure the risk under this Agreement; and
b. this submission of the risk to the Reinsurer will be considered a
facultative submission for any future risks on the proposed
insured(s); or
3. not currently insurable (that is, a "decline" or "postpone" assessment),
then:
a. the risk shall not be reinsured under this Agreement; and
b. this submission of the risk to the Reinsurer will be considered a
facultative submission for any future risks on the proposed
insured(s).
ARTICLE VI
REINSURANCE PREMIUMS
A. Computation
Reinsurance Premiums under this Agreement shall be calculated as described in
Exhibit I.
B. Timing
Reinsurance Premiums are payable each month of coverage for reinsured risks in
force at the end of the preceding month. For newly reinsured risks with a
reinsurance effective date during the current month, the monthly Reinsurance
Premium for the first month of coverage will be payable in the next following
monthly statement.
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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 of the policy. If termination is due to
death, unearned Reinsurance Premium will be determined as of the date of death.
E. Guaranteed Rates
The Annual Rates per $1,000 of Reinsured Net Amount at Risk set forth in Exhibit
III are guaranteed. The Allowance Percentages set forth in Exhibit IV are also
guaranteed, except to the extent that the Reinsurer may adjust the Allowance
Percentages but only in an amount required to ensure that the Reinsurer receives
its proportionate share of any increases in premium rates, policy charges
including cost of insurance rates, or administrative fees as implemented by the
Ceding Company for the reinsured policies.
The Reinsurer will establish statutory reserves for business reinsured under
this Agreement in its statutory financial statements in accordance with
applicable accounting and valuation laws, regulations and actuarial guidelines
to which the Reinsurer is subject. Notwithstanding the foregoing, the Reinsurer
intends to hold statutory reserves for business reinsured under this Agreement
on a 1/24 cx basis using the 2001 CSO Sex and Smoker Distinct Ultimate Table and
the prevailing statutory interest rate.
If the reserve methodology used by the Reinsurer on the Effective Date must be
modified due to a change in law or regulation or a change in a regulator's
interpretation or application of existing law or regulation (hereinafter a
"Reserve Methodology Change Event"), then the Reinsurer will notify the Ceding
Company of the occurrence of the Reserve Methodology Change Event within one
hundred eighty (180) days after first learning of such event, and the Reinsurer
will have the right to transfer this Agreement to an affiliate reinsurer not
subject to U.S. insurance laws, provided that:
1. The Ceding Company is able to take Reinsurance Credit as provided in Article
VIII; and
2. The affiliate reinsurer accepts transfer of this Agreement (including all
amendments) by novation, without any material modification to the substantive
terms of the Agreement except as necessary to enable the Ceding Company to take
Reinsurance Credit in accordance with Article VIII (notwithstanding the terms of
Article XIV, if the Reinsurer novates this Agreement to an entity that is not
subject to United States taxation, the joint DAC Tax Election under Article XIV
shall be invalid for consideration received after the date of the novation); and
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3. The transfer by novation to the affiliate reinsurer does not result in
the payment of any United States tax by the Ceding Company; and
4. The affiliate reinsurer has, at the time of the transfer, a Xxxxx'x or
Standard & Poor's rating equivalent to the Reinsurer's on the execution
date of this Agreement, or the Reinsurer provides a performance
guarantee to the Ceding Company, issued by the Reinsurer or by an
affiliate with, at the time of the transfer, a Xxxxx'x or Standard &
Poor's rating equivalent to the Reinsurer's on the execution date of
this Agreement; any such performance guarantee will apply only to
amounts reinsured under this Agreement, including reasonable costs of
collection, enforcement of the performance guarantee, and interest
thereon, and will terminate automatically if and when the affiliate
reinsurer subsequently obtains a Xxxxx'x or Standard & Poor's rating
equivalent to the Reinsurer's on the execution date of this Agreement;
and
5. If the Reserve Methodology Change Event is due to a change in a
regulator's interpretation or application of existing law or
regulation, the Reinsurer provides documentation to the Ceding Company
showing details of the change in interpretation and a demonstration of
the Reinsurer's application of such change to business retained by the
Reinsurer.
In the event of a novation under this Section, the Parties shall amend this
Agreement in accordance with Article I.B to reflect the mutually agreed upon
terms applicable to such transfer. Such terms shall include, but shall not be
limited to, provisions regarding Credit for Reinsurance, Service of Suit and
Federal Excise Tax, as applicable.
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
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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 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.
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For Automatic and Facultative Reinsurance becoming effective during the calendar
month, the Ceding Company will notify the Reinsurer of such new reinsurance
business in the succeeding monthly report. However, the first three monthly
reports under this Agreement will be sent within one hundred twenty (120) days
after the due date of the first monthly report.
Additional reports reasonably requested by a Party will be provided by the other
Party in a timely manner.
B. Reporting Format and Medium
The information to be provided by the Ceding Company in these monthly reports to
the Reinsurer shall be in a format, and 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.
The Ceding Company shall inform the Reinsurer at least one month in advance of
any change in the reporting format or data prior to its use in reports to the
Reinsurer. The Ceding Company shall provide the Reinsurer with a test file
containing such a change prior to its implementation in the production of
reports.
C. Reporting Delays
The Ceding Company shall inform the Reinsurer of any material delays.
ARTICLE VIII
CREDIT FOR REINSURANCE
X. Xxxxxxxxxxx Credit
The Parties intend that the Ceding Company be entitled to take credit for the
reinsurance ceded under this Agreement in its statutory financial statements
filed in all jurisdictions in which the Ceding Company is licensed, accredited,
or otherwise authorized to transact business ("Reinsurance Credit"). The Parties
shall use best efforts to ensure that such entitlement shall become and remain
available to the Ceding Company throughout the 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, as of the Effective Date of
the Agreement, 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
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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
If the Ceding Company believes in good faith it may not be entitled to claim
Reinsurance Credit, as described above, in total or in part, due to a change in
law or regulation, or due to a change in the interpretation or application of
existing law or regulation by a regulator (hereinafter an "Uncontrollable
Reserve Credit Event"), or due to a failure by the Reinsurer to maintain in
effect a required license or accreditation in any of the jurisdictions in which
the Ceding Company is licensed to transact insurance business (hereinafter a
"Controllable Reserve Credit Event"), then, subject to the Reinsurer's rights
and obligations to cure as defined in this Article, the Parties will take the
steps specified below in this Article.
The Party who first becomes aware of such event will provide prompt notice to
the other Party of the occurrence of either an Uncontrollable Reserve Credit
Event or a Controllable Reserve Credit Event (hereinafter collectively "Reserve
Credit Event").
Within fifteen (15) days of delivery of (if the delivering Party) or receipt of
(if the receiving Party) such notice, the Reinsurer shall propose to the Ceding
Company a cure to the Reserve Credit Event in a manner that eliminates the need
for or enables the Ceding Company to continue to receive Reinsurance Credit. The
Ceding Company may approve or disapprove the Reinsurer's cure proposal at its
sole discretion, except that the Ceding Company shall not deny unreasonably
disapprove any cure proposal presented by the Reinsurer as long as the proposed
cure meets all applicable laws and regulations regarding Reinsurance Credit and
does not require the payment of any United States tax by the Ceding Company.
Without limiting potential cure options, the Reinsurer's proposed cure may
include:
(i) Modifying the settlement terms of this Agreement during the Reserve
Credit Event to provide for monthly settlements in arrears during
the pendency of the Reserve Credit Event; or
(ii) Modifying the settlement terms of this Agreement during the Reserve
Credit Event to provide for settlements on a funds-withheld basis
during the pendency of the Reserve Credit Event; or
(iii) Transferring the reinsurance provided under this Agreement to
another reinsurer by novation of this Agreement, provided that such
other reinsurer meets the Ceding Company's established reinsurer
credit criteria in place at the time of the transfer and that such
other reinsurer accepts transfer of this Agreement (including all
amendments thereto) by novation without any material modification
to the substantive terms of the Agreement (notwithstanding the
terms of Article XIV, if the Reinsurer novates this Agreement to an
entity that is not subject to United States taxation, then the
joint DAC Tax Election under Article XIV shall be invalid for
consideration received after the date of novation); or
(iv) The Reinsurer establishing and maintaining sufficient collateral,
the form of which may be a letter of credit or assets in trust or
some combination of the two, provided such collateral meets all
applicable laws and regulations regarding Reinsurance
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Credit amending this Agreement accordingly and entering into
additional agreements as necessary; or
(v) Any combination of the foregoing or comparable approaches.
In the event the Parties agree upon a cure, the Parties shall amend this
Agreement, in accordance with Section I.B, to reflect the agreed-upon terms of
such cure.
If the Reinsurer cannot cure an Uncontrollable Reserve Credit Event, as set
forth above, but such Uncontrollable Reserve Credit Event can be cured by the
posting of collateral, within fifteen (15) days the Reinsurer shall establish
and maintain collateral, either a trust or a letter of credit, in a form which
meets all applicable standards of law and regulation to enable the Ceding
Company to claim Reinsurance Credit during the pendency of the Reserve Credit
Event. The Parties agree that in such an event, the cost of establishing and
maintaining the collateral will be shared equally by the Ceding Company and the
Reinsurer.
If the Reinsurer cannot cure a Controllable Reserve Credit Event, as set forth
above, but such Controllable Reserve Credit Event can be cured by the posting of
collateral, within fifteen (15) days the Reinsurer shall establish and maintain
collateral, either a trust or a letter of credit, in a form which meets all
applicable standards of law and regulation to enable the Ceding Company to claim
Credit during the pendency of the Reserve Credit Event. The Parties agree that
in such an event, the cost of establishing and maintaining the collateral will
be borne entirely by the Reinsurer.
If a Reserve Credit Event is not cured or the Reinsurer fails to establish or
maintain collateral as set forth above, then the Ceding Company may recapture
the Business Reinsured under this Agreement in accordance with 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.
If either Party discovers that the Ceding Company has failed to correctly report
ceded reinsurance as provided in this Agreement, the Reinsurer may audit the
Ceding Company's 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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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, utilizing the Annual Rates per $1,000 of Reinsured Net
Amount at Risk as set forth in Exhibit III.
Conversions from a policy not reinsured under this Agreement shall not be
reinsured under this Agreement.
B. Increases and Decreases in Policy Face Amount
1. If the face amount of a policy reinsured under this Agreement increases and:
a. The increase is subject to full underwriting, then the provisions of
Article III shall apply to the increase in reinsurance and
Reinsurance Premiums for the increase shall be based on new-business
rates.
Notwithstanding the foregoing, after termination of this Agreement for
new business, any increases subject to full underwriting must be
submitted to the Reinsurer on a facultative obligatory basis, if, the
increase in face amount is in excess of one million dollars ($1
million); or
b. The increase is not subject to full underwriting, and:
(1) The policy was ceded automatically, and:
(a) The face amount after the increase does not exceed the
applicable Total Allocation Limit or if it does exceed the
applicable Total Allocation Limit, it does not exceed the
applicable Automatic Issue Limit, then the Reinsurer will
accept the increase; or
(b) The increase does not meet the requirement above in (a), then
the Reinsurer must consent to the increase; or
(2) The policy was ceded facultatively, then the Reinsurer must
consent to the increase.
Reinsurance Premiums for increases not subject to full underwriting shall be
calculated on a point-in-scale basis, utilizing the Annual Rates per $1,000 of
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Reinsured Net Amount at Risk as set forth in Exhibit III.
For increases in accordance with B.1.b (1), 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. 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. Reinsurance Premiums for exchanges from one
single life policy reinsured under this Agreement to a different single life
policy will be calculated on a point-in-scale basis using Annual Rates per
$1,000 of Reinsured Net Amount at Risk, as set forth in Exhibit III. Likewise,
Reinsurance Premiums for exchanges from one last survivor policy reinsured under
this Agreement to a different last survivor policy will be calculated on a
point-in-scale basis using Annual Rates per $1,000 of Reinsured Net Amount at
Risk, as set forth in Exhibit III. Reinsurance Premiums for 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 calculated at the applicable single life point-in-scale
Annual Rates per $1,000 of Reinsured Net Amount at Risk, as set forth in Exhibit
III. 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,
utilizing the Annual Rates per $1,000 of Reinsured Net Amount at Risk as set
forth in Exhibit III.
The Ceding Company shall notify the Reinsurer of any such changes in policies
reinsured under this Agreement in its monthly reinsurance reports.
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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 of
this Article.
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.
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 will be subject to the
Reinsurer's approval. On Automatic Reinsurance, the Reinsurer will accept this
change if the change qualifies under the underwriting practices and guidelines
described in Schedules C, D, or E, as applicable.
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H. Rescission of Policy Coverage Prior to Death Claim
1. 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.
2. The Ceding Company shall promptly notify the Reinsurer in the event a
rescission is challenged by legal action. The Ceding Company shall also furnish
all information material to such action.
Recognizing the urgent nature of these communications, within ten (10) business
days of receipt of such information, the Reinsurer shall notify the Ceding
Company in writing of the Reinsurer's decision whether or not it shall
participate in the legal and investigation expenses associated with the defense
of the rescission. The Reinsurer may extend the ten-day 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 ten-day period. If the Reinsurer does not
respond to the Ceding Company within the timeframe above, the Reinsurer will be
deemed to have elected to participate in the legal and investigation expenses
associated with the defense of the rescission.
3. 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 sixty (60)
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 sixty (60) 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 (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
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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.
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
1. 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 and the applicable statutory requirements 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.
2. Ceding Company's Claims Practices Relating to Claims Investigations
It is the Ceding Company's sole decision to determine whether to investigate,
contest, compromise, or litigate a claim; however, the Ceding Company is
responsible for investigating, contesting, compromising or litigating reinsured
policy claims in accordance with applicable law and policy terms.
The Ceding Company acknowledges that it follows industry standards as of the
Effective Date and generally investigates claims with any of the following
criteria:
a. If the claim occurs within the contestable period as defined by the
reinsured policy; or
b. If there is a reasonable question regarding the validity of the
insured's death or the authenticity of the proof(s) of death; or
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c. If the death occurs outside the United States or Canada; or
d. If the insured is missing or presumed dead; or
e. If there is a reasonable suspicion of fraud.
A claim investigation generally includes confirming proof of death, reviewing
medical records to validate the insured's medical disclosures, and, if deemed
appropriate, reviewing the insured's financial condition at the time of
application for coverage. Investigations may also include obtaining police
reports, coroners' reports, financial records, or other information that would
be appropriate under the circumstances.
The Ceding Company acknowledges that its general practice is to defend against a
claim if:
(i) A material omission or misrepresentation of fact is found in the
policy application; or
(ii) Fraud is found that can be proved; or
(iii) There is insufficient proof of death.
3. This Section A shall work in conjunction with Section D of this Article.
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, but in any event, not
later than 12 months after the Ceding Company is advised of the claim.
2. Notwithstanding the foregoing, 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:
a. claims where the loss was incurred during the contestable period and
where the Reinsured Net Amount at Risk on the life exceeds and
b. claims for which either:
(1) the death reportedly occurred outside of the United States or
Canada; or
(2) the body of the insured has not been found -- that is, the insured
is reported missing and presumed dead.
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
XII.A.1. The Ceding Company's failure to notify the Reinsurer of such claims
shall be treated in accordance with Article IX.
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If the Reinsurer discovers that the Ceding Company's claim practices and
procedures in effect at the time of the submission of a claim differ materially
and adversely from those in effect at the Effective Date of this Agreement and
from industry standards at the time of the claim, then, in addition to any other
remedies available to the Reinsurer under this Agreement, the Reinsurer may, by
written amendment to this Agreement as described in Section I.B, seek to adjust
the threshold amount specified above in Paragraph a.
C. Claim Payment
1. Proofs
If a death claim is made under a risk reinsured under this Agreement, the Ceding
Company shall provide the Reinsurer with copies of proof(s) of death of the
insured(s), proof of claim payment, and the claimant's statement (collectively
"Proofs"). Copies of claim files, underwriting files and other documents
relating to a claim payment under this Agreement shall be furnished to the
Reinsurer upon written request.
2. Payment of Reinsurance Proceeds
The Reinsurer shall pay the Ceding Company reinsurance proceeds on claims for
which the Ceding Company is contractually liable under policies eligible for
reinsurance under this Agreement. The due date for such payment is the date
thirty (30) calendar days after the date that the Reinsurer has received the
Proofs.
The Reinsurer shall also reimburse the Ceding Company for its proportionate
share of non-routine claims expenses (defined below in Section G) and any
interest paid by the Ceding Company on such claims, such proportion based on the
Reinsurer's proportionate share of the Total Net Amount at Risk of the coverage,
as defined in Schedule B. Interest paid by the Ceding Company on such claims
shall be in accordance with the policy provisions and applicable state
requirements.
Payment of reinsurance proceeds will be made to the Ceding Company in a single
sum, regardless of the Ceding Company's mode of settlement with the payee under
the policy.
3. Claim Balances in Default
If the Reinsurer is delinquent by more than thirty (30) days on an undisputed
amount due to the Ceding Company relating to a claim:
a. The Ceding Company shall have the right to charge interest on
delinquent amounts in accordance with Section XXII.P;
b. The Ceding Company shall have the right to offset such amount,
including any accrued interest charged by the Ceding Company, from
any amount due the Reinsurer in accordance with Article XVII; and
c. To the extent there is an insufficient balance from which to offset
such amounts, the Ceding Company shall have the right to recapture
the remaining reinsurance under this Agreement, as described in
Article XVI,
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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. 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 six-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 advise the Reinsurer of all significant
developments, including notice of legal proceedings initiated in
connection with the contested claim, at reasonable intervals until
the claim is resolved;
b. The Reinsurer shall pay its proportionate share of any settlement of
the claim, such proportion based on the Reinsurer's proportionate
share of the Total Net Amount at Risk of the coverage, as defined in
Schedule B; and
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 foregoing, if at any point in time, the Reinsurer does not
agree with the Ceding Company's course of action associated with the Contest,
the Reinsurer may opt out of the Contest by paying its full share of liability
as if there had been no Contest, and shall incur no further expense or
obligation to reimburse the Ceding Company with respect to actions taken after
the date the Reinsurer opts out. However, once the Reinsurer has participated in
the Contest, the Reinsurer shall remain liable for its proportionate share of
any Extra-Contractual Obligations that arise from agreed upon actions taken
prior to the date the Reinsurer opts out. 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. The Reinsurer will not recommend to the Ceding Company to contest a claim.
E. Misstatement of Age or Sex
If the amount of insurance provided by the policy or policies reinsured under
this Agreement is increased or decreased because of misstatement of age or sex
that is established after the death of the insured (or the second death in the
case of a last survivor policy), the Reinsurer will share with the Ceding
Company in this increase or decrease of insurance in proportion to the
Reinsurer's share of the Total Net Amount at Risk, as defined in Schedule B. The
amount will be adjusted from the inception of the policy, and any difference in
amounts due between the Parties under this Agreement will be settled without
interest. The Reinsurer's proportionate share of the increase or decrease will
be equal to its share of the Total Net Amount at Risk, as defined in Schedule B.
F. Return of Premium for Misrepresentations and Suicides
1. If a misrepresentation, misstatement, or omission on an application, or the
death of an insured by suicide, results in the Ceding Company returning the
policy premiums (or monthly deductions) to the policy owner rather than paying
the death benefits under a risk reinsured under this Agreement, the Reinsurer
shall refund to the Ceding Company all of the Reinsurance Premiums it received
on that coverage without interest. This refund paid by the Reinsurer shall be in
lieu of any and all other reinsurance benefits payable on that risk under this
Agreement.
2. In addition, the Reinsurer shall pay its proportionate share of reasonable
third-party investigation and legal expenses connected with the Ceding Company's
decision to return the policy premiums (or monthly deductions) as described
above in 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
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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
This Agreement shall, to the extent permitted by law, indemnify the Ceding
Company for any Extra-Contractual Obligations.
For the purposes of this Agreement, "Extra-Contractual Obligations" shall mean
any punitive, exemplary, compensatory, consequential or other damages paid or
payable by the Ceding Company as a result of an action arising under, relating
to, or in connection with a Contest.
ARTICLE XIV
DAC TAX SECTION 1.848-2(g)(8) ELECTION
The Ceding Company and the Reinsurer jointly agree to the DAC Tax Election
pursuant to Section 1.848-2(g)(8) of the Income Tax Regulations (the "Treasury
Regulations") issued under Section 848 of the Internal Revenue Code of 1986, as
amended (the "Code"). As used in this Article, the terms "net positive
consideration," "specified policy acquisition expenses," and "general deductions
limitation" are defined by reference to Treasury Regulations Section
1.848-2(g)(8) and Code Section 848 as of the Effective Date.
As part of this DAC Tax Election, both Parties agree:
A. That the Party with the net positive consideration for this Agreement for
each taxable year will capitalize specified policy acquisition expenses with
respect to this Agreement without regard to the general deductions limitation of
Code Section 848(c)(1);
B. To exchange information pertaining to the amount of net consideration under
this Agreement each year to ensure consistency; and
C. That the method and timing of the exchange of this information shall be as
follows:
1. The Ceding Company shall submit a schedule to the Reinsurer by May 1 of each
year with its calculation of the net consideration for the preceding calendar
year.
2. If the Reinsurer disagrees with the calculation, 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.
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3. If required by the Treasury Regulations, each Party shall attach the
calculation schedule to its respective U.S. federal income tax return for each
taxable year in which consideration is transferred under this Agreement. The
calculation schedule shall identify this Agreement, and shall restate the
election described in this Article.
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.
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. It is the intention of the
Parties that, unless expressly provided for otherwise in this Agreement, the
Reinsurer:
1. shall be liable only for benefits reinsured as benefits become due under the
terms of the policies reinsured under this Agreement;
2. shall not be liable for any amounts or reserves required to be held by the
Ceding Company for policies reinsured under this Agreement; and
3. shall not be liable for any damages or payments resulting from any
termination or restructure of the policies reinsured under this Agreement.
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.
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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;
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 Reinsurer fails to provide security in accordance with Section
VIII.C;
(2) If the Reinsurer is delinquent on payment of an undisputed net amount due
in accordance with Section XII.C.3; or
(3) If the Reinsurer is deemed insolvent, in accordance with Article XV.
B. In the event of recapture, the Parties shall mutually agree upon the
recapture terms, including the value of the business reinsured to be paid from
one Party to the other upon recapture. If no agreement can be reached, an
independent actuary will be hired to determine the value of the business
reinsured. Costs of the independent actuary will be shared equally by the
Parties.
The value of the business reinsured will be based on appropriate assumptions as
to interest rates, mortality, lapses and other actuarial assumptions. Key
considerations shall include, but not be limited to:
1. Projected future claims costs;
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2. Projected future Reinsurance Premiums;
3. Statutory reserve requirements;
4. 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
5. 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 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 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 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
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resolve the dispute, and that they recommend establishment of arbitration in
accordance with Article XIX.B.
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 where not
contrary to the express terms 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:
A. Expedited Arbitration
The following disputes will be subject to expedited arbitration as set forth in
this Section A:
(1) any dispute arising under Section V.C; or
(2) any dispute in which the amount in controversy, exclusive of interest or
costs, is less than $2 million.
Expedited arbitration proceedings will be held before a single neutral umpire
who is a past or present officer of a life and health insurance or life and
health reinsurance company not affiliated with either of the Parties in any way.
If the Parties cannot agree on an umpire within thirty (30) calendar days
following the demand for expedited arbitration, the selection shall be made
pursuant to the Umpire Selection Procedure of the XXXXX-US Certified Arbitrators
List available at xxx.XXXXX-XX.xxx.
Within twenty-one (21) days following the selection of the umpire, the Parties
and umpire will conduct an organizational meeting by teleconference to
familiarize the umpire with the dispute and to set a timetable for submission of
briefs. There will be no discovery, and the dispute will be decided based on
briefs and documentary evidence only, unless otherwise agreed by the Parties or
ordered by the umpire for good cause. No ex parte communication will be
permitted with the umpire at any time prior to the conclusion of the
proceedings.
Within thirty (30) days after the submission of briefs by the Parties, the
umpire will render 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 umpire, each Party shall
bear the expense of its own arbitration activities and shall jointly and equally
bear the expense of the umpire 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.
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The Parties may mutually agree to extend any of the periods shown in this
Section.
B. Formal Arbitration
All other types of disputes will be decided through formal arbitration as set
forth in this Section B.
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
pursuant to the Umpire Selection Procedure of the XXXXX-US Certified Arbitrators
List available at xxx.XXXXX-XX.xxx.
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
Section.
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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 policies being issued by the Ceding Company:
(1) immediately upon written notice to the other Party, if that other Party
becomes insolvent as described in Article XV; or
(2) with ninety (90) days advance written notice to the other Party.
B. After termination, 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.
C. The Ceding Company shall continue to cede, and the Reinsurer shall continue
to accept, any new business issued prior to the termination of this Agreement.
ARTICLE XXI
CONFIDENTIALITY
During the course of performance under this Agreement, a Party (the "Owner") or
its agent may make available to the other Party (the "Recipient") or its agent
certain technical materials such as manuals, policyholder lists, data files and
the data contained therein, systems, forms, methods, processes and procedures,
and other information or data (collectively, "Proprietary Information") that is
proprietary or trade secret in nature. Proprietary Information shall
specifically exclude information that was previously known to the Recipient or
that is or was publicly disclosed to the Recipient by any party not known by the
Recipient to be under a duty to retain such information as confidential.
Each Party acknowledges that all Proprietary Information is offered for the sole
purpose of performing its obligations under this Agreement. Further, each Party
agrees that the Owner is deemed to be the sole owner of such Proprietary
Information and that any use, furnishing, disclosure, dissemination,
publication, or revealing of Proprietary Information in any way by the Recipient
to any person, organization, firm or government agency contrary to applicable
law or to the terms of this Agreement, shall obligate the Recipient to indemnify
and hold the Owner harmless from any damages, litigation, liability, claimed
liability, claims, and expenses -- including reasonable attorneys' fees and
incidental expenses -- resulting from any such improper use, furnishing,
disclosure, or revealing of Owner's Proprietary Information, whether occurring
during the term of this Agreement or thereafter, except to the extent that any
such loss or damage was caused or contributed to by the Owner. The Ceding
Company acknowledges that the Reinsurer can aggregate the Ceding Company's
Proprietary Information with other companies reinsured with the Reinsurer as
long as the data cannot be identified as belonging to the Ceding Company.
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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 laws and regulations material to this Agreement.
In the event that either Party is found to be noncompliant with any such law or
regulation, this Agreement will remain in effect and the non-compliant Party
will, to the extent practicable, remedy the noncompliance as soon as possible.
In addition, while nothing herein shall limit a Party from seeking additional
remedies for damages resulting from non-compliance with any laws or regulations
material to the business reinsured under this Agreement, if a Party is found to
be noncompliant with a Material Law, the non-compliant Party shall indemnify the
other Party for any direct loss that Party suffers as a result of the
noncompliance.
For purposes of this Agreement, "Material Laws" shall mean those laws and
regulations that impose mandatory compliance requirements. It shall not mean
those laws or regulations that set forth standards or requirements for obtaining
a particular legal, tax or accounting treatment, which may be elected or sought
by a Party, but which are not mandatory.
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 intended
the Reinsurer to rely on the same, as well as the Reinsurer's expertise,
knowledge, and experience in the life insurance and life reinsurance industries,
in its decision to enter into this Agreement.
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The Ceding Company represents to the Reinsurer that, as of the date it executed
this Agreement, it was not aware of any errors in the Request for Proposal and
that the Request for Proposal at the time it was provided to the Reinsurer was
complete in all material respects.
In addition, the Parties agree that the principles of good faith traditional to
life reinsurance shall be adhered to in the performance of this Agreement, in
the underwriting and administration of the business reinsured hereunder, and in
their dealing with each other. Pursuant to such principles, the Ceding Company
will inform the Reinsurer in writing of any material change in its underwriting,
administration, or claims practices for the Reinsurer's consideration and
written approval.
If the Reinsurer does not consent to any such changes, the Reinsurer reserves
the right to decline reinsurance coverage on such policies and/or negotiate a
corresponding adjustment of the reinsurance terms and conditions for the risks
reinsured hereunder.
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
Either Party or its duly authorized Representative may, upon reasonable notice
and at a time and place mutually convenient to both Parties, inspect and audit
the books and records of the other Party that relate to the terms and conditions
of this Agreement and the business that is the subject matter of this Agreement.
Such inspection rights shall not include any information related to: (i) either
Party's pricing or Reinsurer's offer to reinsure; (ii) other transactions
entered into by either Party; (iii) analysis of the Agreement developed by
either Party for internal purposes; (iv) either Party's investment strategy or
hedging programs; or (v) privileged information of either Party. however, if
either Party deems any of the information to be reviewed to be Proprietary
Information, such information may be reviewed by the requesting Party provided
(a) such information or data is material to the review; (b) a Representative of
the Party providing said information is present at all times during such review;
(c) no copies are made of such information; and (d) no notes are made using or
based on such Information.
The above notwithstanding, if the inspection/audit is in response to a
regulatory inquiry which requires access to Proprietary Information, the Owner
of the Proprietary Information will provide such response directly to the
regulator, within the timeframe set forth in the inquiry, with a copy of the
response to the other Party. However, if the inquiry and/or response requires
that copies of the actual Proprietary Information be provided, the Owner of the
Proprietary Information will provide such copies directly to the requesting
regulator without copies to the other Party.
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P. Short-Term Interest
For some payments under this Agreement that are due from one Party to the other
Party, the Party owed has the right to charge the other Party interest on those
payments. If that right is exercised, such interest will be computed, from the
date the payment is due to the date payment is made, using the short-term
interest method.
Interest under the short-term interest method will accrue at an effective annual
rate set equal to the lesser of (i) a rate equal to the sum of 50 basis points
(0.50%) plus the annualized Three Month London Interbank Offering Rate (LIBOR)
published in the Wall Street Journal (or, if not available, a comparable
publication agreed upon by the Parties) on the due date of the payment, if the
due date is a business day, or if not, on the first business day following the
due date, or (ii) the maximum annual rate allowed by law for this purpose in the
governing-law state specified above in Section G.
The effective annual interest rate to be used under the short-term interest
method for a payment due will be reset every three months after such due date,
as necessary, if the payment accrues interest for a period longer than three
months. If multiple payments are accruing interest under one computation, then
the rate will be reset every three months after the due date of the earliest
such payment, and the reset rate for each successive period shall apply to
accrue interest on all such payments accrued during such period.
ARTICLE XXIII
NOTICES AND COMMUNICATIONS
A. Material Communications
For the purpose of this Agreement, "Material Communications" shall be defined as
those communications associated with material breach of this Agreement,
termination or recapture of this Agreement, demand for arbitration or dispute
resolution 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 Head of Client Markets
Reinsurance
Hartford Life Insurance Company Swiss Re Life & Health America Inc.
000 Xxxxxxxxx Xxxxxx 000 Xxxx Xxxxxx
Xxxxxxxx, XX 00000 Xxxxxx, XX 00000
Facsimile: (000) 000-0000
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Copies (which shall not constitute Copies (which shall not constitute
notice) to: notice) to:
Corporate Reinsurance Risk Mgt. Actuarial Department
Hartford Life Insurance Company Swiss Re Life & Health America Inc.
000 Xxxxxxxxx Xxxxxx 0000 Xxxxxxxx Xxx
Xxxxxxxx, XX 00000 Xxxx Xxxxx, XX 00000
Facsimile: (000) 000-0000
Reinsurance Counsel Senior Legal Counsel
Hartford Life Insurance Company Swiss Re Life & Health America Inc.
000 Xxxxxxxxx Xxxxxx 000 Xxxx Xxxxxx
Xxxxxxxx, XX 00000 Xxxxxx, XX 00000
Facsimile: (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 below in 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.
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.
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EXECUTION
In witness whereof, the Parties, by their duly authorized representatives, have
executed this Agreement in duplicate:
SWISS RE LIFE & HEALTH AMERICA INC.
By: /s/ [ILLEGIBLE] Attest: /s/ [ILLEGIBLE]
----------------------------- -------------------------------
Name: [ILLEGIBLE] Name: [ILLEGIBLE]
Title: Vice President Title: Vice President
Date: 12-22-09 Date: 12-22-09
HARTFORD LIFE INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxxxxx X. Xxxxxxxxx
----------------------------- -------------------------------
Name: Xxxxxx X. Xxxxxxxx, FSA, MAAA Name: Xxxxxxx X. Xxxxxxxxx, FSA, MAAA
Vice President Assistant Vice President and
Actuary
Date: 12-23-2009 Date: 12-24-2009
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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 VALUATION MORTALITY TABLE(S) TYPE*
-----------------------------------------------------------------------------------------
Stag UL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Bicentennial UL Founders 2001 CSO M/F S/NS Ultimate ANB A
Hartford UL CV 1980 CSO M/F S/NS Ultimate ALB A
Stag Wall Street VUL 1980 CSO M/F S/NS Ultimate ALB A
Stag Protector II VUL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Leaders VUL Legacy 2001 CSO M/F Composite Ultimate ANB A
Stag Accumulator II VUL 1980 CSO M/F Unismoke Ultimate ALB A
Hartford Leaders VUL Liberty (a) 1980 CSO M/F Unismoke Ultimate ANB A
Hartford Leaders VUL Liberty (b) 2001 CSO M/F Composite Ultimate ANB A
Life Solutions II UL (a) 1980 CSO M/F S/NS Ultimate ALB A
Life Solutions II UL (b) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Advanced Universal Life 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Freedom 2001 CSO M/F S/NS Ultimate ANB B
Hartford Quantum II VUL (a) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Quantum II VUL (b) 2001 CSO M/F S/NS Ultimate ANB A
Hartford ExtraOrdinary Whole Life (a) 2001 CSO M/F S/NS Ultimate ALB A
Hartford ExtraOrdinary Whole Life (b) 2001 CSO M/F S/NS Ultimate ANB A
RIDERS PROVIDING DEATH BENEFITS THAT RIDERS THAT PROVIDE ADDITIONAL BENEFITS
ARE ELIGIBLE FOR REINSURANCE: BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Accidental Death Benefit (ADB) Rider
Primary Insured Term Rider Accelerated Benefit Rider (ABR)
Other Covered Insured Term Life Rider LifeAccess Accelerated Ben. Rider
(LAABR)
Cost of Living Adjustment (COLA) Rider Policy Continuation Rider
Policy Protection Rider (PPR)
Enhanced No Lapse Guarantee Rider
NOTE:NAR Type for term riders above is Lifetime No Lapse Guarantee Rider
C.
For COLA Rider, NAR Type follows Guar. Min. Accum. Benefit (GMAB) Rider
Base Policy to which it is attached. Paid-Up Life Insurance Rider
Conversion Option Rider
Overloan Protection Rider
Waiver of Specified Amount (WSA) Rider
Waiver of Monthly Deductions (WMD)
Rider
Children's Life Insurance Rider
Foreign Travel Exclusion Rider
Estate Tax Repeal Benefit Rider
Modified Surrender Value Rider
Cash Surrender Value Endorsement
Automatic Premium Payment Rider
Additional Premium Rider
Qualified Plan Rider
------------
* NAR Type is described in Schedule B.
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SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Primary Insured Term Rider: Provides additional level term life coverage on the
base policy insured.
Other Covered Insured Term Life Rider: Provides level term life coverage on an
insured other than the base policy insured.
Cost of Living Adjustment (COLA) Rider: Provides for biennial face amount
increases, without underwriting, based on increases in the Consumer Price Index.
The maximum amount of any single increase is $50,000. Any increase can be
declined by the policyholder, which stops future increases. Available only at
issue and only for non-substandard issue ages 0 through 60.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Accidental Death Benefit Rider: Pays an additional death benefit if the death on
the insured is caused by a qualifying accident.
Accelerated Benefit Rider: Provides the policyholder up to 100% of the death
benefit, discounted with interest, if the insured's life expectancy is 12 months
or less. After acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
LifeAccess Accelerated Benefit Rider (LAABR): Provides for monthly benefits (up
to 2% of death benefit) if insured meets certain ADL and home-care requirements.
During and after acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
Policy Continuation Rider: Intended to prevent the lapse of highly loaned
policies.
Policy Protection Rider: Protects the death benefit of the base policy and any
primary insured term rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Enhanced No Lapse Guarantee Rider: Provides that the policy will not lapse as
long as cumulative premiums paid less indebtedness and less withdrawals are
greater than or equal to the cumulative no lapse guarantee premiums. Length of
guarantee varies by issue age.
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SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
Lifetime No Lapse Guarantee Rider: Same as Enhanced No Lapse Guarantee Rider but
with lifetime guarantee.
Guaranteed Minimum Accumulation Benefit (GMAB) Rider: Provides, at the end of
the GMAB Guarantee Period (usually 20 years), that the policy Account Value will
be increased, if necessary, to equal the sum of gross premiums paid to that
date. There is a small monthly charge and a minimum cumulative premium
requirement to keep the rider in force.
Paid-Up Life Insurance Rider: Similar to the GMAB rider, with the same Guarantee
Period, a monthly charge, and a cumulative premium requirement. At end of the
Guarantee Period, the owner may elect to change coverage to paid-up life using
the Account Value as a 5% NSP to determine the amount of coverage; however, the
amount of coverage will never be lower than the sum of gross premiums paid to
that date. Once elected, premiums are no longer payable.
Conversion Option Rider: During certain policy years and prior to the insured's
attained age 70, the policy may be converted, without evidence of insurability,
to any permanent plan of life insurance the Ceding Company then makes available
for conversions of this policy.
Overloan Protection Rider: Protects a policy from terminating due to overloan.
Waiver of Specified Amount (WSA) Rider: Waives a specified amount monthly while
the insured is disabled.
Waiver of Monthly Deductions (WMD) Rider: Waives monthly deduction amounts while
the insured is disabled.
Children's Life Insurance Rider: Provides level term life coverage for each
child of the insured.
Foreign Travel Exclusion Rider: Provides a limited death benefit (Account Value
less indebtedness) if the insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
Estate Tax Repeal Benefit Rider: Pays the policy Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Modified Surrender Value Rider: Changes the Cash Surrender Value definition (to
equal the Account Value) if the policy is surrendered within 3 years after the
policy issue date.
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.
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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
Hartford, and describes features and activities that are unavailable when the
policy is owned by a Qualified Plan.
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SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
LAST SURVIVOR PLANS OF INSURANCE
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE*
----------------------------------------------------------------------------------------------
Hartford Leaders VUL Joint Legacy 2001 CSO M/F S/NS Select & Ultimate ALB A
Hartford Leaders VUL Joint Legacy II 2001 CSO M/F S/NS Select & Ultimate ANB A
Hartford Advanced Last Survivor UL 2001 CSO M/F S/NS Select & Ultimate ALB B
Hartford Bicentennial UL Joint Freedom 2001 CSO M/F S/NS Select & Ultimate ALB B
Hartford Bicentennial UL Joint Freedom II 2001 CSO M/F S/NS Select & Ultimate ANB B
------------
* NAR Type is described in Schedule B.
RIDERS PROVIDING DEATH BENEFITS THAT RIDERS THAT PROVIDE ADDITIONAL BENEFITS
ARE ELIGIBLE FOR REINSURANCE BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Estate Protection Rider (NAR Type is C) LS Exchange Option Rider
Policy Protection Rider
Estate Tax Repeal Rider
Foreign Travel Exclusion Rider
Guar. Min. Accum. Benefit (GMAB) Rider
Paid-Up Life Insurance Rider
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Estate Protection Rider: This rider provides last survivor level term life
insurance on the base policy insureds for three years.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
LS Exchange Option Rider: Allows a Last Survivor policy to be split into two
Single Life policies, without new evidence of insurability, if divorce, business
dissolution, or estate-tax repeal or reduction occurs. The face amount of each
new Single Life policy will equal one half of the Last Survivor policy face
amount. Upon a split, reinsurance will continue at point-in-scale rates for each
single life, as documented in Section X.C. (This rider is not available when one
of the insureds is uninsurable or above Table H.)
Policy Protection Rider: Protects the death benefit of the base policy and any
Estate Protection Rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
45
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
Estate Tax Repeal Rider: This rider will pay the Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Foreign Travel Exclusion: Provides a limited death benefit (Account Value less
indebtedness) if either insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
GMAB Rider and Paid-Up Life Insurance Rider: Same as Single Life riders.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
46
SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
AUTOMATIC REINSURANCE: The Ceding Company shall retain its available retention
on each risk, defined below as the Retained Net Amount at Risk, subject to the
applicable Ceding Company's Treaty Retention Limit shown in Exhibit II.
The Reinsurer will automatically reinsure a portion of the remainder of the
risk, called the Reinsured Net Amount at Risk, as defined below in this Schedule
B.
FACULTATIVE REINSURANCE: The Reinsurer will reinsure X% (as determined at issue)
of the Total Net Amount at Risk for the risk.
TOTAL ALLOCATION LIMIT (TAL): As shown in Exhibit II.
CEDING COMPANY'S TREATY RETENTION LIMIT (CCTRL): As shown in Exhibit II.
CEDING COMPANY'S ALLOCATED RETENTION (CCAR): As shown in Exhibit II.
CURRENT RETENTION (CURRRET) = Current amount of life insurance retained by the
Ceding Company and its affiliated companies on the life for in-force life
insurance coverage. (For Last Survivor risks, see the Last Survivor Limits and
Retention Worksheet in Exhibit II.)
REINSURER'S ALLOCATED RETENTION (REINSARET): As shown in Exhibit II.
REINSURER'S ATTACHMENT POINT (REINSAPT): As shown in Exhibit II.
NAR TYPE for the Plan of Insurance to be reinsured under this Agreement, as
shown in Schedule A.
Step 1 -- Determine Total Net Amount at Risk for the Coverage
TOTAL NET AMOUNT AT RISK (TOTNAR) =
For NAR TYPE A, Death Benefit minus the Account Value.
For NAR TYPE B, Death Benefit minus the Working Reserve, where
Working Reserve = (i) x (ii) / (iii), and
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
47
SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
For NAR TYPE C, Death Benefit.
STEP 2 -- DETERMINE NET AMOUNT AT RISK FOR EACH "LAYER" OF COVERAGE
STEP 3 -- DETERMINE THE NAR FOR THE CEDING COMPANY AND THEN FOR THE REINSURER
MINIMUM REINSURANCE CESSION: AUTOMATIC:
[Redacted] FACULTATIVE: [Redacted]
LEAD REINSURER: Swiss Re Life & Health America Inc.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
48
ISS YRT REINSURANCE AGE LAST BIRTHDAY FEMALE PREFERRED PLUS ULT
PREMIUM TABLE RATES BASIS NON-NICOTINE
PER 1,000
[Redacted]
ARP TREATY EFFECTIVE 10/1/08 HARTFORD LIFE -- CONFIDENTIAL
EXHIBIT III
1
SCHEDULE C
FOREIGN NATIONAL UN49
DERWRITING 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, as 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 only and must be billed to a
residence or bank in the U.S.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
SCHEDULE C
FOREIGN NATIONAL UNDERWRITING PROGRAM
FOR SINGLE LIFE PERMANENT POLICIES ONLY; NOT AVAILABLE FOR LAST SURVIVOR
POLICIES
EFFECTIVE OCTOBER 1, 2008
ADDITIONAL UNDERWRITING AND RISK CLASS GUIDELINES
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
50
SCHEDULE C
FOREIGN NATIONAL UNDERWRITING PROGRAM
FOR SINGLE LIFE PERMANENT POLICIES ONLY; NOT AVAILABLE FOR LAST SURVIVOR
POLICIES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
51
SCHEDULE D
OTHER SPECIAL UNDERWRITING PROGRAMS
EFFECTIVE OCTOBER 1, 2008
The Ceding Company has several special underwriting programs. The majority of
these programs are contained within the Underwriting Brochure entitled "Life
insurance underwriting that opens doors and closes cases", form LCM-05-418-1-09.
Another program, Life Express, effective October 26, 2009, is documented in a
LifeTIMES Bulletin dated October 30, 2009. Both of these publications have been
shared in advance of the execution of this Agreement with the Reinsurer. The
Ceding Company has two additional special underwriting programs not listed in
the Underwriting Brochure, the "Xxxxx Program" and the "Director's Charitable
Award Program", which are listed below.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
52
SCHEDULE D
SPECIAL UNDERWRITING PROGRAMS
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
53
SCHEDULE D
SPECIAL UNDERWRITING PROGRAMS
EFFECTIVE OCTOBER 1, 2008
DIRECTOR'S CHARITABLE AWARD PROGRAM (DCAP) -- CONTINUED
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
54
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
What follows is a summary of the Ceding Company's underwriting practices and
guidelines as of the Effective Date of this Agreement. The Ceding Company's
actual underwriting practices and guidelines are documented in its InfoBase data
system. To the extent that any information contained in this Schedule differs
from the practices and guidelines documented in InfoBase, InfoBase will govern.
UNDERWRITING PRACTICES
OVERALL UNDERWRITING PHILOSOPHY
It is the goal of our underwriting department to provide the best offer as
accurately and as quickly as we can, balancing the needs of all our stakeholders
-- producers, stockholders, reinsurers, policy owners, state insurance
departments, employees, etc. It is essential that we maintain a sense of
fairness with our company and our stakeholders, in terms of profitability and
mortality expectations.
UNDERWRITING REQUIREMENTS
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
55
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
56
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
57
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
58
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
UNDERWRITING REQUIREMENTS -- STANDARD PERMANENT PLANS
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
59
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
60
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
UNDERWRITING REQUIREMENTS -- STAG WALL STREET VUL
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
61
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 -- Effective 10/1/2008
Between HLIC and Swiss Re
62
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 -- Effective 10/1/2008
Between HLIC and Swiss Re
63
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 -- Effective 10/1/2008
Between HLIC and Swiss Re
64
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
PREFERRED CLASSES -- ADDITIONAL UNDERWRITING REQUIREMENTS
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
65
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
PREFERRED CLASSES -- ADDITIONAL UNDERWRITING REQUIREMENTS (CONT'D)
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
66
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
67
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
68
SCHEDULE E
CEDING COMPANY'S STANDARD UNDERWRITING PRACTICES AND GUIDELINES
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
69
SCHEDULE F
POLICIES ELIGIBLE FOR REINSURANCE UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
The following categories of policies are eligible for reinsurance under this
Agreement:
CATEGORY # CATEGORY DESCRIPTION
----------------------------------------------------------------------------------------------------------------------------
1 Policies issues on or after March 1, 2009
2 Policies issued from the Effective Date of this Agreement through February 28,
2009 that were eligible for automatic reinsurance under one of the following
Ceding Company reinsurance pools:
i. Single Life Excess Pool effective November 1, 2002
ii. Advanced UL Pool effective September 1, 2004;
iii. Last Survivor Excess Pool effective January 1, 2002; and
iv. Advanced Last Survivor UL Pool effective January 1, 2005,
but that were fully retained by the Ceding Company at the time of processing (see Note below).
Notwithstanding the foregoing, fully retained policies issued during this period in which the insured has a
subsequent policy that is partially or fully ceded to another pool (including the Hartford Term Pool effective
April 10, 2006) will not be eligible for reinsurance under this Agreement:
NOTE:
The Ceding Company completed the processing of Category 2 business in July 2009.
At the time of processing, the Ceding Company paid the Reinsurer Reinsurance
Premiums for all policies in Category 2 back to each policy's issue date.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
70
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 [ 1 - (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 Allowance
Percentages to be Applied to the Annual Rates per $1,000 of Reinsured
Net Amount at Risk specified in Exhibit IV;
(ii) equals the applicable Substandard Table Percentage, specified in Exhibit
V, for the risk; and
(iii) equals the Reinsured Net Amount at Risk for such coverage, defined in
Schedule B.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
71
EXHIBIT I
REINSURANCE PREMIUM CALCULATION
EFFECTIVE OCTOBER 1, 2008
FOR SINGLE LIFE PLANS OF INSURANCE
ANNUAL FLAT EXTRA REINSURANCE PREMIUM
The Annual Flat Extra Reinsurance Premium for each coverage equals {(i) x [ 1 -
(ii) ] x [(iii) / 1,000]}, where:
(i) equals the applicable annual flat extra rate per 1,000, for the year of
coverage, that the Ceding Company charges for the coverage;
(ii) equals the Flat Extra Allowance Percentage, specified below; and
(iii) equals the Reinsured Net Amount At Risk for such coverage, defined in
Schedule B.
FLAT EXTRA ALLOWANCE PERCENTAGE
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
72
EXHIBIT I
REINSURANCE PREMIUM CALCULATION
EFFECTIVE OCTOBER 1, 2008
FOR LAST SURVIVOR PLANS OF INSURANCE
REINSURANCE PREMIUM
Reinsurance Premium shall be calculated each month for each risk reinsured as
[(i) x (ii) / 1,000] / 12, where:
(i) equals the result of the following steps:
(ii) equals the Reinsured Net Amount at Risk for the coverage, defined in
Schedule B.
For the purposes of calculating Reinsurance Premium, the following will be
considered separate coverages: base policy, increases in coverage, and reinsured
riders. Reinsurance Premium for a single life rider attached to a last survivor
policy shall be determined in accordance with the Reinsurance Premium
calculations for single life plans of insurance.
YRT REINSURANCE PREMIUM RATE PER 1,000*
The YRT Reinsurance Premium Rate per 1,000 for each life, for each coverage
shall equal (i) x (ii) + (iii), but in no event more than 1,000, where:
(i) equals the YRT Reinsurance Premium Rate per 1,000, which equals the quantity
{(a) x [ 1-(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 Allowance
Percentages to be Applied to the Annual Rates per $1,000 of Reinsured
Net Amount at Risk specified in Exhibit IV;
(ii) equals the applicable Substandard Table Percentage, specified in Exhibit V,
for the risk; and
(iii) equals the Annual Flat Extra Reinsurance Premium per 1,000, as defined
below.
* For purposes of determining the YRT Reinsurance Premium Rate per 1,000, a life
deemed uninsurable will be treated as Table P with a $250 flat extra for 10
years.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
73
EXHIBIT I
REINSURANCE PREMIUM CALCULATION
EFFECTIVE OCTOBER 1, 2008
FOR LAST SURVIVOR PLANS OF INSURANCE
ANNUAL FLAT EXTRA REINSURANCE PREMIUM PER 1,000
The Annual Flat Extra Reinsurance Premium per 1,000 for each coverage equals
{(i) x [ 1-(ii)]}, where:
(i) equals the applicable annual flat extra rate per 1,000, for the year of
coverage, that the Ceding Company charges for the coverage; and
(ii) equals the Flat Extra Allowance Percentage, specified below.
FLAT EXTRA ALLOWANCE PERCENTAGE
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
74
EXHIBIT II
RETENTION, BINDING, AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
(For specifics on calculation of limits with Last Survivor coverage, see
Worksheet on Page 4)
Effective October 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
75
EXHIBIT II
RETENTION, BINDING, AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
(For specifics on calculation of limits with Last Survivor coverage, see
Worksheet on Page 4)
Effective October 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
76
EXHIBIT II
RETENTION, BINDING, AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
77
EXHIBIT II
RETENTION, BINDING, AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
78
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 included in the
Excel file titled "Master File -- Guaranteed Rates.xls" sent from Xxxxxxx
Xxxxxxxxx at the Ceding Company to Xxxxxxx Xxxxxx at the Reinsurer on October
30, 2009 at 5:45 P.M. 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. Non-Nicotine;
b. Nicotine;
All risks insured by the Ceding Company on a Unisex basis will be reinsured
using gender-specific rates.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
79
MALE PREF PLUS NON NIC ISSUE AGE
------------------------------------------------------
Male Pref + NN 0
Male Pref + NN 1
Male Pref + NN 2
Male Pref + NN 3
Male Pref + NN 4
Male Pref + NN 5
Male Pref + NN 6
Male Pref + NN 7
Male Pref + NN 8
Male Pref + NN 9
Male Pref + NN 10
Male Pref + NN 11
Male Pref + NN 12
Male Pref + NN 13
Male Pref + NN 14
Male Pref + NN 15
Male Pref + NN 16
Male Pref + NN 17
Male Pref + NN 18
Male Pref + NN 19
Male Pref + NN 20
Male Pref + NN 21
Male Pref + NN 22
Male Pref + NN 23
Male Pref + NN 24
Male Pref + NN 25
Male Pref + NN 26
Male Pref + NN 27
Male Pref + NN 28
Male Pref + NN 29
Male Pref + NN 30
Male Pref + NN 31
Male Pref + NN 32
Male Pref + NN 33
Male Pref + NN 34
Male Pref + NN 35
Male Pref + NN 36
Male Pref + NN 37
Male Pref + NN 38
Male Pref + NN 39
Male Pref + NN 40
Male Pref + NN 41
Male Pref + NN 42
Male Pref + NN 43
Male Pref + NN 44
Male Pref + NN 45
Male Pref + NN 46
Male Pref + NN 47
Male Pref + NN 48
Male Pref + NN 49
Male Pref + NN 50
Male Pref + NN 51
Male Pref + NN 52
Male Pref + NN 53
Male Pref + NN 54
Male Pref + NN 55
Male Pref + NN 56
Male Pref + NN 57
Male Pref + NN 58
Male Pref + NN 59
Male Pref + NN 60
Male Pref + NN 61
Male Pref + NN 62
Male Pref + NN 63
Male Pref + NN 64
Male Pref + NN 65
Male Pref + NN 66
Male Pref + NN 67
Male Pref + NN 68
Male Pref + NN 69
Male Pref + NN 70
Male Pref + NN 71
Male Pref + NN 72
Male Pref + NN 73
Male Pref + NN 74
Male Pref + NN 75
Male Pref + NN 76
Male Pref + NN 77
Male Pref + NN 78
Male Pref + NN 79
Male Pref + NN 80
Male Pref + NN 81
Male Pref + NN 82
Male Pref + NN 83
Male Pref + NN 84
Male Pref + NN 85
Male Pref + NN 86
Male Pref + NN 87
Male Pref + NN 88
Male Pref + NN 89
Male Pref + NN 90
Male Pref + NN 91
ISSUE
MALE PREFERRED NON NIC AGE
------------------------------------------------------
Male Pref NN 0
POLICY YEAR
MALE PREF PLUS NON NIC ISSUE AGE 1 2 3 4 5
----------------------------------------------------------------------------------------------------------
Male Pref + NN 0 0.72 0.56592 0.38121 0.33929 0.29999
POLICY YEAR
MALE PREF PLUS NON NIC ISSUE AGE 6 7 8 9 10
----------------------------------------------------------------------------------------------------------
Male Pref + NN 0 0.25938 0.25152 0.22663 0.22 0.23
POLICY YEAR
MALE PREF PLUS NON NIC ISSUE AGE 11 12 13 14 15
----------------------------------------------------------------------------------------------------------
Male Pref + NN 0 0.24 0.28 0.34 0.4 0.53448
POLICY YEAR
MALE PREF PLUS NON NIC ISSUE AGE 16 17 18 19 20
----------------------------------------------------------------------------------------------------------
Male Pref + NN 0 0.68775 0.96809 1.05848 1.13708 1.20127
POLICY YEAR
MALE PREF PLUS NON NIC ISSUE AGE 21 22 23 24 25
----------------------------------------------------------------------------------------------------------
Male Pref + NN 0 1.24581 1.14101 1.14101 1.12529 1.1004
POLICY YEAR
MALE PREF PLUS NON NIC ISSUE AGE 26 27 28 29 30
----------------------------------------------------------------------------------------------------------
Male Pref + NN 0 1.06765 1.04 1.06 1.04 1.03
EXHIBIT V
SUBSTANDARD TABLE PERCENTAGES
EFFECTIVE OCTOBER 1, 2008
SUBSTANDARD TABLE PERCENTAGES (SEE EXHIBIT I FOR USAGE)
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
81
EXHIBIT VI
CONDITIONAL RECEIPT OR TEMPORARY INSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
[LOGO] HARTFORD LIFE INSURANCE COMPANY
THE HARTFORD HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
000 XXXXXXXXXX XXXXX, XXXXXXXX, XX 00000
P.O. BOX 64271, ST. XXXX, MN 55164 0271
TEMPORARY INSURANCE AGREEMENT
PROPOSED PRIMARY INSURED: NAME: DATE OF BIRTH:
Under this Temporary Insurance Agreement ("Agreement"), Hartford Life Insurance
Company or Hartford Life and Annuity Insurance Company ("Company") agrees to
provide a LIMITED AMOUNT of life insurance coverage, for A LIMITED PERIOD of
time, subject to the terms and conditions set forth below.
WHEN COVERAGE BEGINS
Temporary life insurance coverage under the Agreement becomes effective on the
date this Agreement is signed, subject to ALL of the following conditions:
a) An Application for Life Insurance with the Company ("Application") or a
Request for Insurance Application with the Company ("Request") has been
completed as of the same date this Agreement has been signed;
b) The answers to the health questions below are "No"; and
c) The Company receives the first full modal premium for the mode selected on
the Application or the Request
WHEN TEMPORARY INSURANCE COVERAGE TERMINATES --- 90 DAY MAXIMUM
Temporary insurance under this Agreement will terminate on the earliest of:
1. 30 days from the effective date of this Agreement if a required and
requested medical exam, lab test, application interview or medical report has
not been received by the Company;
2. 90 days from the effective date of this Agreement;
3. The date the policy, as applied for, takes effect;
4. The date the Company offers a policy with a risk assessment other than
Standard or a Preferred Class;
5. The date the Company mails a notice of termination of this Agreement to the
Proposed Policyowner at the address set forth in the Application or Request.
If the Company terminates coverage, the collected premium will be refunded
without interest.
WHO IS COVERED
This Agreement provides temporary insurance coverage only for the Primary
Insured. The Primary Insured is the "Proposed Insured" named in the Request, the
"Proposed Insured 1" named in the Application, or "Proposed Insured 1" and
"Proposed Insured 2" named in Applications for survivorship life insurance
coverage. THIS AGREEMENT DOES NOT PROVIDE INSURANCE COVERAGE FOR ANY OTHER
PROPOSED INSUREDS, INCLUDING BUT NOT LIMITED TO, OTHER PROPOSED INSUREDS UNDER
TERM INSURANCE RIDERS AND CHILD RIDERS.
AMOUNT OF LIFE INSURANCE COVERAGE --- $1,000,000 MAXIMUM
If death of a covered Primary Insured occurs while this Agreement is in effect,
the Company will pay a death benefit to the beneficiary designated in the
Application or Request.
The death benefit shall be the LESSER of:
a) The amount of death benefit indicated in the Application or Request, with
respect to the deceased Primary Insured; or
b) $1,000,000.
LIMITATIONS AND CONDITIONS OF COVERAGE
1. If benefits are payable under this Agreement, then no benefit relating to
that loss will be payable under the policy which is applied for.
2. MATERIAL MISREPRESENTATIONS OR FRAUD IN THE ANSWERS TO THE HEALTH QUESTIONS
SET FORTH BELOW OR IN THE APPLICATION WILL INVALIDATE THIS AGREEMENT AND THE
COMPANY'S LIABILITY WILL BE LIMITED TO A REFUND OF THE PREMIUM PAYMENT.
3. This Agreement does not cover any Primary Insured who is age 71 or over as
of the effective date of this Agreement.
DETACH OWNER'S COPY AT TIME OF APPLICATION
HOME OFFICE COPY
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
82
EXHIBIT VI
CONDITIONAL RECEIPT OR TEMPORARY INSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
LIMITATIONS AND CONDITIONS OF COVERAGE (CONTINUED)
4. This Agreement provides temporary life insurance coverage in the event of
the death of Primary Insured. It does not provide any coverage for other
benefits which may be applied for, including but not limited to, waiver of
premium or accidental death benefits or coverage.
5. There is no coverage under this Agreement if a Primary Insured dies by
suicide. In that event, the Company's liability will be limited to a refund of
the premium payment.
6. There is no coverage under this Agreement if the check or draft submitted as
payment is not honored on the first presentation to the bank.
7. Only an officer of the Company can make, modify, or alter any of the
provisions of this Agreement.
HEALTH QUESTIONS
Has the Primary Insured:
1. WITHIN THE PAST 90 DAYS, OTHER THAN FOR PREGNANCY OR CHILDBIRTH, BEEN
ADMITTED TO OR TREATED AT A HOSPITAL OR OTHER MEDICAL FACILITY, BEEN ADVISED TO
BE ADMITTED, OR HAD SURGERY PERFORMED OR RECOMMENDED?
YES NO
2. WITHIN THE PAST 2 YEARS HAD OR BEEN TREATED FOR HEART DISEASE, CHEST PAIN,
STROKE, CANCER, ALCOHOL OR DRUG USE, IMMUNE SYSTEM DISORDER OR HAD SUCH
TREATMENT RECOMMENDED BY A PHYSICIAN OR MEDICAL PRACTITIONER?
YES NO
NOTE: IF EITHER QUESTION #1 OR QUESTION #2 ABOVE IS ANSWERED "YES" OR LEFT
BLANK, NO COVERAGE WILL TAKE EFFECT UNDER THIS TEMPORARY INSURANCE AGREEMENT AND
ANY PREMIUM RECEIVED WILL BE REFUNDED.
DECLARATIONS
Each of the undersigned declares, understands and agrees that:
- The answers provided above are complete and true to the best of his/her
knowledge and belief.
- If the answers to the Health Questions contained in this Agreement or the
Application are incorrect, incomplete or untrue, the Company will have the
right to deny benefits under this Agreement.
X DATE:
----------------------------------- ------------------------------
PROPOSED PRIMARY INSURED SIGNATURE
X DATE:
----------------------------------- ------------------------------
PROPOSED POLICY OWNER SIGNATURE
(IF OTHER THAN THE PROPOSED
INSURED)
RECEIPT OF PAYMENT
A premium payment of $ has been submitted with the Application or Request.
Additional premium may be required upon Policy delivery.
ALL PREMIUM CHECKS MUST BE MADE PAYABLE TO HARTFORD LIFE INSURANCE COMPANY OR
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY. DO NOT MAKE CHECK(S) PAYABLE TO THE
AGENT OR LEAVE THE PAYEE BLANK.
X DATE:
----------------------------------- ------------------------------
Agent Signature
DETACH OWNER'S COPY AT TIME OF APPLICATION
HOME OFFICE COPY
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
83
EXHIBIT VI
CONDITIONAL RECEIPT OR TEMPORARY INSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
[LOGO] HARTFORD LIFE INSURANCE COMPANY
THE HARTFORD HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
000 XXXXXXXXXX XXXXX, XXXXXXXX, XX 00000
P.O. BOX 64271, ST. XXXX, MN 55164 0271
TEMPORARY INSURANCE AGREEMENT
PROPOSED PRIMARY INSURED: NAME: DATE OF BIRTH:
Under this Temporary Insurance Agreement ("Agreement") Hartford Life Insurance
Company or Hartford Life and Annuity Insurance Company ("Company") agrees to
provide a LIMITED AMOUNT of life insurance coverage, for a LIMITED PERIOD of
time, subject to the terms and conditions set forth below.
WHEN COVERAGE BEGINS
Temporary life insurance coverage under the Agreement becomes effective on the
date this Agreement is signed, subject to ALL of the following conditions:
a) An Application for Life Insurance with the Company ("Application") or a
Request for Insurance Application with the Company ("Request") has been
completed as of the same date this Agreement has been signed;
b) The answers to the health questions below are "No"; AND
c) The Company receives the first full modal premium for the mode selected on
the Application or the Request.
WHEN TEMPORARY INSURANCE COVERAGE TERMINATES -- 90 DAY MAXIMUM
Temporary insurance under this Agreement will terminate on the earliest of:
1. 30 days from the effective date of this Agreement if a required and
requested medical exam, lab test, application interview or medical report has
not been received by the Company;
2. 90 days from the effective date of this Agreement;
3. The date the policy, as applied for, takes effect;
4. The date the Company offers a policy with a risk assessment other than
Standard or a Preferred Class;
5. The date the Company mails a notice of termination of this Agreement to the
Proposed Policyowner at the address set forth in the Application or Request.
If the Company terminates coverage, the collected premium will be refunded
without interest.
WHO IS COVERED
This Agreement provides temporary insurance coverage only for the Primary
Insured. The Primary Insured is the "Proposed Insured" named in the Request, the
"Proposed Insured 1" named in the Application, or "Proposed Insured 1" and
"Proposed Insured 2" named in Applications for survivorship life insurance
coverage. THIS AGREEMENT DOES NOT PROVIDE INSURANCE COVERAGE FOR ANY OTHER
PROPOSED INSUREDS, INCLUDING BUT NOT LIMITED TO, OTHER PROPOSED INSUREDS UNDER
TERM INSURANCE RIDERS AND CHILD RIDERS.
AMOUNT OF LIFE INSURANCE COVERAGE -- $1,000,000 MAXIMUM
If death of a covered Primary Insured occurs while this Agreement is in effect,
the Company WILL pay a death benefit to the beneficiary designated in the
Application or Request.
The death benefit shall be the LESSER of:
a) The amount of death benefit indicated in the Application or Request, with
respect to the deceased Primary Insured; or
b) $1,000,000.
LIMITATIONS AND CONDITIONS OF COVERAGE
1. If benefits are payable under this Agreement, then no benefit relating to
that loss will be payable under the policy which is applied for.
2. MATERIAL MISREPRESENTATIONS OR FRAUD IN THE ANSWERS TO THE HEALTH QUESTIONS
SET FORTH BELOW OR IN THE APPLICATION WILL INVALIDATE THIS AGREEMENT AND THE
COMPANY'S LIABILITY WILL BE LIMITED TO A REFUND OF THE PREMIUM PAYMENT.
3. This Agreement does not cover any Primary Insured who is age 71 or over as
of the effective date of this Agreement.
OWNER'S COPY
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
84
EXHIBIT VI
CONDITIONAL RECEIPT OR TEMPORARY INSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
LIMITATIONS AND CONDITIONS OF COVERAGE (CONTINUED)
4. This Agreement provides temporary life insurance coverage in the event of
the death of Primary Insured. It does not provide any coverage for other
benefits which may be applied for, including but not limited to, waiver of
premium or accidental death benefits or coverage.
5. There is no coverage under this Agreement if a Primary Insured dies by
suicide. In that event, the Company's liability will be limited to a refund of
the premium payment.
6. There is no coverage under this Agreement if the check or draft submitted as
payment is not honored on the first presentation to the bank.
7. Only an officer of the Company can make, modify, or alter any of the
provisions of this Agreement.
HEALTH QUESTIONS
Has the Primary Insured:
1. WITHIN THE PAST 90 DAYS, OTHER THAN FOR PREGNANCY OR CHILDBIRTH, BEEN
ADMITTED TO OR TREATED AT A HOSPITAL OR OTHER MEDICAL FACILITY, BEEN ADVISED TO
BE ADMITTED, OR HAD SURGERY PERFORMED OR RECOMMENDED?
YES NO
2. WITHIN THE PAST 2 YEARS HAD OR BEEN TREATED FOR HEART DISEASE, CHEST PAIN,
STROKE, CANCER, ALCOHOL OR DRUG USE, IMMUNE SYSTEM DISORDER OR HAD SUCH
TREATMENT RECOMMENDED BY A PHYSICIAN OR MEDICAL PRACTITIONER?
Yes No
NOTE: IF EITHER QUESTION #1 OR QUESTION #2 ABOVE IS ANSWERED "YES" OR LEFT
BLANK, NO COVERAGE WILL TAKE EFFECT UNDER THIS TEMPORARY INSURANCE AGREEMENT AND
ANY PREMIUM RECEIVED WILL BE REFUNDED.
DECLARATIONS
Each of the undersigned declares, understands and agrees that:
- The answers provided above are complete and true to the best of his/her
knowledge and belief.
- If the answers to the Health Questions contained in this Agreement or the
Application are incorrect, incomplete or untrue, the Company will have the
right to deny benefits under this Agreement.
X DATE:
----------------------------------- ------------------------------
PROPOSED PRIMARY INSURED SIGNATURE
X DATE:
----------------------------------- ------------------------------
PROPOSED POLICY OWNER SIGNATURE
(IF OTHER THAN THE PROPOSED
INSURED)
RECEIPT OF PAYMENT
A premium payment of $ has been submitted with the Application or
Request. Additional premium may be required upon Policy delivery.
ALL PREMIUM CHECKS MUST BE MADE PAYABLE TO HARTFORD LIFE INSURANCE COMPANY OR
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY. DO NOT MAKE CHECK(S) PAYABLE TO THE
AGENT OR LEAVE THE PAYEE BLANK.
X DATE:
----------------------------------- ------------------------------
Agent Signature
OWNER'S COPY
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
85
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
REPORT ACCOUNTING PERIOD DUE DATE
--------------------------------------------------------------------------------------------------------------
1. New Business* Monthly 30th day after month end
(New issues only -- first time
policy reported to the Reinsurer)
2. Renewal Business* Monthly 30th day after month end
(Policies with renewal dates
within the Accounting Period)
3. Changes & Terminations* Monthly 30th day after month end
(includes conversions, replacements
reinstatements, increases, decreases,
recaptures, lapses, claims, etc.)
4. Inforce List Monthly 30th day after month end
(Listing of each policy in force)
5. Statutory Reserves Quarterly 30th day after quarter end
6. Policy Exhibit Monthly 30th day after month end
------------
* Policy record details for new business, renewal business, and changes and
terminations (Reports 1, 2, and 3 above) may be reported as separate reports
or combined into one report, provided, the required data elements continue
to be satisfied.
REPORTING SYSTEM:
The system used by the Ceding Company to administer its reinsurance is: XXX.
NOTE:
Certain policy transactions, such as increases, are coded in the policy
administration system as riders, although they do not correspond to filed rider
forms.
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EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
MINIMUM DATA REQUIREMENTS
INFORCE AND TRANSACTION FILE
Company Identifies the Ceding Company
Policy Policy number which is part of the policy key
Coverage/rider Coverage number which is part of the policy key. This
number is used to identify specific policy coverage.
Cession ID This field contains the number assigned to this
cession by the Reinsurer
Transaction Sequence This field indicates the transaction record(s)
created during the month.
Line of Business This field indicates the line of business the policy
falls under.
Reinsurance Company Two character reinsurance company ID code that
identifies the Reinsurer.
Reporting Company Identifies the company used for reporting purposes.
Will be the same as the Reinsurance Company.
Transaction Type Identifies the type of transaction being reported on
the Transaction extract.
Transaction Count This field is used on the Transaction extract to
identify the addition or termination of a cession.
Reinsurance From Date This field contains the beginning date of the period
covered by this record. The premiums on the
Transaction record cover the period beginning with
the From Date through the To Date.
Reinsurance To Date This field contains the end date of the period
covered by a record.
Date Reported On the Transaction extract, this is the month the
transaction was reported.
Mode Identifies the mode of reinsurance premium payment.
Policy Duration The duration at issue is 01.
Reinsurance Duration Contains the reinsurance duration. It may differ from
the policy duration if the cession is a continuation.
Cession Number Hartford does not currently use. Defaults to spaces.
Policy Date This field contains the issue date of the policy.
Reinsurance Date This field contains the issue date of the
reinsurance. For most cessions it is the same as the
policy date. For continuations, it contains the issue
date of the original coverage.
Issue State This field contains a two-letter abbreviation of the
state or province of issue. Used to determine unisex
rates.
Resident State This field contains a two-letter abbreviation of the
state or province of issue. Used to compute premium
tax reimbursement if applicable.
Joint Type Identifies Joint business type
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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.
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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.
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.)
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EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
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.)
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.
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EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
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.
Dividend If applicable, this field contains the reinsurer's
share of the direct dividend.
Policy Fee This field contains the reinsurance policy fee.
Continuation Original This field indicates the ceding company on the
Company original policy. (Used for conversions only.)
Continuation Original This field indicates the policy number for the
Policy original policy. (Used for conversions only.)
Continuation Original This field indicates the coverage/rider for the
Coverage/Rider original policy. (Used for conversions only.)
Message An informational message may be manually added to a
policy by the Ceding Company.
Image switch Hartford does not currently use. Defaults to spaces.
Policy Fee Allowance This field contains the reinsurance policy fee
allowance.
Location Code Hartford does not currently use. Defaults to spaces.
Treaty Reference Number Upon request, this field contains the Reinsurer's
treaty number.
Claim Hartford does not currently use. Defaults to spaces.
Policy Status This field identifies the status of the cession.
Policy Master Smoker -- 1 Policy smoker class on direct policy. For Joint Life
policies, this field contains the policy master
smoker class for Insured 1.
Policy Master Smoker -- 2 Policy smoker class on direct policy. For Joint Life
policies, this field contains the policy master
smoker class for Insured 2. (If this is not a Joint
Life policy, this field will be blank.)
Policy Effective Date This field contains the effective date of the
reinsurance.
Policy Application Date This field indicates the date the insured signed the
application.
NAR Type This field indicates the method used in determining
the Total Net Amount at Risk (as defined in Schedule
B).
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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.
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EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
RESERVE FILE
Company Identifies the Ceding Company
Policy Policy number which is part of the policy key
Coverage/rider Coverage number which is part of the policy key. This
number is used to identify a specific policy
coverage.
Cession ID This field contains the number assigned to this
cession by the Reinsurer
Benefit Type This field is the reserve type. 1 = Life, 2=ADB,
3=Waiver, 4=Flat Extras, 5=Substandard
Calc Method Hartford's TAI Valuation Method 1=Xxxxxxx Reserve +
1/2 cx, E=Coinsurance Reserve, H=Half Premium,
L=Factor FLX1, X=1/2 cx
Reinsurance Company Two character reinsurance company ID code that
identifies the Reinsurer.
Reporting Company Identifies the company used for reporting purposes.
Will be the same as the Reinsurance Company.
Line of Business This field indicates the line of business the policy
falls under. (L=Life)
Treaty Number This field contains the TAI system treaty number
Plan This field contains the coverage plan code.
Auto/Fac Indicator Indicates whether the policy is ceded on an Automatic
or Facultative basis.
Product code This field contains the product type code.
Joint Type Identifies Joint business Type
Joint Method Switch Identifies XXX Xxxxxxx method calculation
Mode Identifies the mode of reinsurance premium payment.
Cession Status This field identifies the status of the cession.
Reinsurance Type This field is a one-character code that identifies
the type of reinsurance.
Duration Contains the reinsurance duration. It may differ from
the policy duration if the cession is a continuation.
Participation code This field indicates whether the business is Non
participating (N) or Participating (P).
Policy Date This field contains the issue date of the policy.
Reinsurance To Date This field contains the end date of the period
covered by a record.
Policy Face Amount Indicates the face amount of the total policy.
Ceded Amount This field contains the policy amount ceded to a
specific reinsurer
Net Amount at Risk This field contains the reinsured net amount at risk
(NAR) for a specific reinsurer.
Premium This field contains the reinsurance premium.
Reserve Percent Value appears on Coinsurance business only
Cession Count Cession count only appears under Life (Base), not
benefits.
Age Basis Nearest/Closest (C), Last (L), Next (N)
Insured Status -- 1 This field indicates the insured's coverage status.
For Joint Life policies, this field indicates the
insured's coverage status for Insured 1.
Age -- 1 This field contains the insured's issue age. For
Joint Life policies, this field contains the issue
age for Insured 1.
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REINSURANCE REPORTS
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Class -- 1 This field contains the company's rating of standard
or preferred and the smoker class. For Joint Life
policies, this field contains the class for Insured
1.
Sex -- 1 This field is used to identify the sex of the
insured. For Joint Life policies, this field contains
the sex of Insured 1.
Mortality -- 1 This field contains the insured's mortality rating.
For Joint Life policies, this field contains the
mortality rating for Insured 1.
Insured Status -- 2 This field indicates the insured's coverage status.
For Joint Life policies, this field indicates the
insured's coverage status for Insured 2. (If this is
not a Joint Life policy, this field will be blank.)
Age -- 2 This field contains the insured's issue age. For
Joint Life policies, this field contains the issue
age for Insured 2. (If this is not a Joint Life
policy, this field will be blank.)
Class -- 2 This field contains the company's rating of standard
or preferred and the smoker class. For Joint Life
policies, this field contains the class for Insured
2. (If this is not a Joint Life policy, this field
will be blank.)
Sex -- 2 This field is used to identify the sex of the
insured. For Joint Life policies, this field contains
the sex of Insured 2. (If this is not a Joint Life
policy, this field will be blank.)
Mortality -- 2 This field contains the insured's mortality rating.
For Joint Life policies, this field contains the
mortality rating for Insured 2. (If this is not a
Joint Life policy, this field will be blank.)
Reserve Statutory or Tax Reserve for each coverage.
Reserve Interest Rate This field identifies the Interest Rate used when
calculating reserves.
Reserve Factor Applicable Mortality Basis YRT Factor
Factor Pointer TAI specific field to identify applicable mortality
table used when calculating reserves.
Attained Age TAI specific field. Default is 1
Setback TAI specific field. Default is zero
Class Switch TAI specific field. Valuation Class (D=Distinct)
Curtate Switch This field indicates whether reserves are on a
curtate or continuous basis.
Caption Hartford's TAI Valuation Method
Error Code Informational field used by Hartford -- Usually Blank
Reserve Class 1 This field contains insured's smoker class. For Joint
Life policies, this field contains the class for
Insured 1.
Reserve Class 2 This field contains insured's smoker class. For Joint
Life policies, this field contains the class for
Insured 2. (If this is not a Joint Life policy, this
field will be blank.)
Currency Code This field identifies the currency. (USD or CND if
applicable)
Valuation Interest TAI assigned field that is used to read applicable
Pointer interest rates when calculating 1/2 cx reserves.
NAR Type This field indicates the method used in determining
the Total Net Amount at Risk (as defined in Schedule
B).
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
94
AMENDMENT 1
EFFECTIVE MARCH 5, 2010
TO THE
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE INSURANCE COMPANY ("CEDING COMPANY")
AND
SWISS RE LIFE AND HEALTH AMERICA INC. ("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to add
the following new Single Life Plans of Insurance:
- Hartford Bicentennial UL Founders II
- Hartford Bicentennial UL Founders II Extended Value Option
and the following Rider:
- Owner Designated Settlement Option Rider.
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
1. Schedule A is deleted in its entirety and replaced with the attached
revised Schedule A.
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
Allocated Retention Pool -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 1 -- Effective March 5, 2010
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of March 5, 2010.
SWISS RE LIFE AND HEALTH AMERICA INC.
By: /s/ [ILLEGIBLE] Attest: /s/ Xx Xxxxxx
------------------------------ ------------------------------
Name: [ILLEGIBLE] Name: Xx Xxxxxx
Title: Vice President Title: Vice President
Date: 4-14-10 Date: 4-14-10
HARTFORD LIFE INSURANCE COMPANY
By: /s/ Xxxxxxx Xxxxxxxxx Attest: /s/ Xxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxxx Xxxxxxxxx Name: Xxxx Xxxxxx, FSA, MAAA
Title: Assistant Vice President & Title: Senior Vice President
Actuary Individual Life Product
Management
Date: 4-16-10 Date: 4/20/10
Allocated Retention Pool -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 1 -- Effective March 5, 2010
2
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE MARCH 5, 2010
SINGLE LIFE PLANS OF INSURANCE
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE*
----------------------------------------------------------------------------------------------
Stag UL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Bicentennial UL Founders 2001 CSO M/F S/NS Ultimate ANB A
Hartford UL CV 1980 CSO M/F S/NS Ultimate ALB A
Stag Wall Street VUL 1980 CSO M/F S/NS Ultimate ALB A
Stag Protector II VUL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Leaders VUL Legacy 2001 CSO M/F Composite Ultimate ANB A
Stag Accumulator II VUL 1980 CSO M/F Unismoke Ultimate ALB A
Hartford Leaders VUL Liberty (a) 1980 CSO M/F Unismoke Ultimate ANB A
Hartford Leaders VUL Liberty (b) 2001 CSO M/F Composite Ultimate ANB A
Life Solutions II UL (a) 1980 CSO M/F S/NS Ultimate ALB A
Life Solutions II UL (b) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Advanced Universal Life 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Freedom 2001 CSO M/F S/NS Ultimate ANB B
Hartford Quantum II VUL (a) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Quantum II VUL (b) 2001 CSO M/F S/NS Ultimate ANB A
Hartford ExtraOrdinary Whole Life (a) 2001 CSO M/F S/NS Ultimate ALB A
Hartford ExtraOrdinary Whole Life (b) 2001 CSO M/F S/NS Ultimate ANB A
Hartford Bicentennial UL Founders II 2001 CSO M/F S/NS Ultimate ANB A
Hartford Bicentennial UL Founders II
Extended Value Option 2001 CSO M/F S/NS Ultimate ANB A
RIDERS PROVIDING DEATH BENEFITS RIDERS THAT PROVIDE ADDITIONAL BENEFITS
THAT ARE ELIGIBLE FOR REINSURANCE: BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Accidental Death Benefit (ADB) Rider
Primary Insured Term Rider Accelerated Benefit Rider (ABR)
Other Covered Insured Term Life LifeAccess Accelerated Ben. Rider
Rider (LAABR)
Cost of Living Adjustment (COLA) Policy Continuation Rider
Rider
Policy Protection Rider (PPR)
Enhanced No Lapse Guarantee Rider
NOTE: NAR Type for term riders Lifetime No Lapse Guarantee Rider
above is C.
For COLA Rider, NAR Type follows Guar. Min. Accum. Benefit (GMAB) Rider
Base Policy to which it is Paid-Up Life Insurance Rider
attached.
Conversion Option Rider
Overloan Protection Rider
* NAR Type is described in Schedule Waiver of Specified Amount (WSA) Rider
B.
Waiver of Monthly Deductions (WMD)
Rider
Children's Life Insurance Rider
Foreign Travel Exclusion Rider
Estate Tax Repeal Benefit Rider
Modified Surrender Value Rider
Allocated Retention Pool -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 1 -- Effective March 5, 2010
3
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE MARCH 15, 2010
RIDERS THAT PROVIDE ADDITIONAL BENEFITS
BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE (CONTINUED):
Cash Surrender Value Endorsement
Automatic Premium Payment Rider
Additional Premium Rider
Qualified Plan Rider
Owner Designated Settlement Option
Rider
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Primary Insured Term Rider: Provides additional level term life coverage on the
base policy insured.
Other Covered Insured Term Life Rider: Provides level term life coverage on an
insured other than the base policy insured.
Cost of Living Adjustment (COLA) Rider: Provides for biennial face amount
increases, without underwriting, based on increases in the Consumer Price Index.
The maximum amount of any single increase is $50,000. Any increase can be
declined by the policyholder, which stops future increases. Available only at
issue and only for non-substandard issue ages 0 through 60.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Accidental Death Benefit Rider: Pays an additional death benefit if the death on
the insured is caused by a qualifying accident.
Accelerated Benefit Rider: Provides the policyholder up to 100% of the death
benefit, discounted with interest, if the insured's life expectancy is 12 months
or less. After acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
LifeAccess Accelerated Benefit Rider (LAABR): Provides for monthly benefits (up
to 2% of death benefit) if insured meets certain ADL and home-care requirements.
During and after acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
Policy Continuation Rider: Intended to prevent the lapse of highly loaned
policies.
Allocated Retention Pool -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 1 -- Effective March 5, 2010
4
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE MARCH 5, 2010
Policy Protection Rider: Protects the death benefit of the base policy and any
primary insured term rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Enhanced No Lapse Guarantee Rider: Provides that the policy will not lapse as
long as cumulative premiums paid less indebtedness and less withdrawals are
greater than or equal to the cumulative no lapse guarantee premiums. Length of
guarantee varies by issue age.
Lifetime No Lapse Guarantee Rider: Same as Enhanced No Lapse Guarantee Rider but
with lifetime guarantee.
Guaranteed Minimum Accumulation Benefit (GMAB) Rider: Provides, at the end of
the GMAB Guarantee Period (usually 20 years), that the policy Account Value will
be increased, if necessary, to equal the sum of gross premiums paid to that
date. There is a small monthly charge and a minimum cumulative premium
requirement to keep the rider in force.
Paid-Up Life Insurance Rider: Similar to the GMAB rider, with the same Guarantee
Period, a monthly charge, and a cumulative premium requirement. At end of the
Guarantee Period, the owner may elect to change coverage to paid-up life using
the Account Value as a 5% NSP to determine the amount of coverage; however, the
amount of coverage will never be lower than the sum of gross premiums paid to
that date. Once elected, premiums are no longer payable.
Conversion Option Rider: During certain policy years and prior to the insured's
attained age 70, the policy may be converted, without evidence of insurability,
to any permanent plan of life insurance the Ceding Company then makes available
for conversions of this policy.
Overloan Protection Rider: Protects a policy from terminating due to overloan.
Waiver of Specified Amount (WSA) Rider: Waives a specified amount monthly while
the insured is disabled.
Waiver of Monthly Deductions (WMD) Rider: Waives monthly deduction amounts while
the insured is disabled.
Children's Life Insurance Rider: Provides level term life coverage for each
child of the insured.
Foreign Travel Exclusion Rider: Provides a limited death benefit (Account Value
less indebtedness) if the insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
Estate Tax Repeal Benefit Rider: Pays the policy Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Modified Surrender Value Rider: Changes the Cash Surrender Value definition (to
equal the Account Value) if the policy is surrendered within 3 years after the
policy issue date.
Allocated Retention Pool -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 1 -- Effective March 5, 2010
5
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE MARCH 15, 2010
Cash Surrender Value Endorsement: Provides for enhanced Cash Surrender Value
(equal to the current Account Value) in the event of policy surrender in the
first 4 policy years, unless the policy is exchanged under Section 1035 to
another company's policy.
Automatic Premium Payment Rider: Provides for any Scheduled Premium due and
unpaid by the end of any Policy Grace Period to be paid by an automatic
deduction from the Account Value, if the Account Value exceeds the Guaranteed
Cash Value.
Additional Premium Rider: Allows additional premium amounts to be paid at the
same payment intervals as scheduled premiums.
Qualified Plan Rider: This rider indicates that the policy is owned by a
qualified plan, details the policy owner's reporting responsibilities to The
Hartford, and describes features and activities that are unavailable when the
policy is owned by a Qualified Plan.
Owner Designated Settlement Option. This rider allows the policy owner to
designate a Settlement Option to be used for the payment of Death Proceeds.
Allocated Retention Pool -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 1 -- Effective March 5, 2010
6
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE MARCH 5, 2010
LAST SURVIVOR PLANS OF INSURANCE
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE*
------------------------------------------------------------------------------------------------------
Hartford Leaders VUL Joint Legacy 2001 CSO M/F S/NS Select & Ultimate ALB A
Hartford Leaders VUL Joint Legacy II 2001 CSO M/F S/NS Select & Ultimate ANB A
Hartford Advanced Last Survivor UL 2001 CSO M/F S/NS Select & Ultimate ALB B
Hartford Bicentennial UL Joint Freedom 2001 CSO M/F S/NS Select & Ultimate ALB B
Hartford Bicentennial UL Joint Freedom II 2001 CSO M/F S/NS Select & Ultimate ANB B
------------
* NAR Type is described in Schedule B.
RIDERS PROVIDING DEATH BENEFITS THAT RIDERS THAT PROVIDE ADDITIONAL
ARE ELIGIBLE FOR REINSURANCE BENEFITS BUT THAT ARE NOT ELIGIBLE
FOR REINSURANCE:
Estate Protection Rider (NAR Type is LS Exchange Option Rider
C)
Policy Protection Rider
Estate Tax Repeal Rider
Foreign Travel Exclusion Rider
Guar. Min. Accum. Benefit (GMAB)
Rider
Paid-Up Life Insurance Rider
Owner Designated Settlement Option
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Estate Protection Rider: This rider provides last survivor level term life
insurance on the base policy insureds for three years.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
LS Exchange Option Rider: Allows a Last Survivor policy to be split into two
Single Life policies, without new evidence of insurability, if divorce, business
dissolution, or estate-tax repeal or reduction occurs. The face amount of each
new Single Life policy will equal one half of the Last Survivor policy face
amount. Upon a split, reinsurance will continue at point-in-scale rates for each
single life, as documented in Section X.C. (This rider is not available when one
of the insureds is uninsurable or above Table H.)
Policy Protection Rider: Protects the death benefit of the base policy and any
Estate Protection Rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Allocated Retention Pool -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 1 -- Effective March 5, 2010
7
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE MARCH 5, 2010
Estate Tax Repeal Rider: This rider will pay the Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Foreign Travel Exclusion: Provides a limited death benefit (Account Value less
indebtedness) if either insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
GMAB Rider and Paid-Up Life Insurance Rider: Same as Single Life riders.
Owner Designated Settlement Option. This rider allows the policy owner to
designate a Settlement Option to be used for the payment of Death Proceeds.
Allocated Retention Pool -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 1 -- Effective March 5, 2010
8
AMENDMENT 2
EFFECTIVE OCTOBER 1, 2008
TO THE
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE INSURANCE COMPANY ("CEDING COMPANY")
AND
SWISS RE LIFE & HEALTH AMERICA INC. ("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 add Annual Renewable Term
as a Base Policy available for coverage for facultative submissions; and
WHEREAS, the Ceding Company and the Reinsurer wish to provide for approximate
Net Amount at Risk (NAR) Type B reporting in certain circumstances; and
WHEREAS, the Ceding Company and the Reinsurer wish to reflect the correct
Valuation Mortality Tables associated with Last Survivor Plans of Insurance; and
WHEREAS, the Ceding Company and the Reinsurer wish to correct the Reinsurer's
Quota Share Percentage for NAR2 (ReinsQS2%).
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
1. The above recitals are true and accurate and are incorporated
herein.
2. Section III. A, Automatic Reinsurance, is hereby amended to include
the following Section III.A. 11:
11. The policy is not an Annual Renewable Term policy.
3. Article VII, Reinsurance Reporting, is deleted in its entirety and
replaced with the attached, revised Article VII.
4. Schedule A is deleted in its entirety and replaced with the
attached, revised Schedule A.
5. Schedule B is deleted in its entirety and replaced with the
attached, revised Schedule B.
6. Exhibit II is deleted in its entirety and replaced with the
attached, revised Exhibit II.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
Amendment #2 -- Effective 10/1/2008
1
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of October 1, 2008.
SWISS RE LIFE & HEALTH AMERICA INC.
By: /s/ [ILLEGIBLE] Attest: /s/ [ILLEGIBLE]
------------------------------ ------------------------------
Name: [ILLEGIBLE] Name: [ILLEGIBLE]
Title: Senior Vice President Title: Vice President
Date: 4/7/2011 Date: 4/7/2011
HARTFORD LIFE 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: 4/28/2011 Date: 4/28/2011
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
Amendment #2 -- Effective 10/1/2008
2
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 estimated Net Amount at Risk for new
reinsurance business in the first monthly report in which such business appears.
In the event that the Ceding Company provides an estimated Net Amount at Risk,
it shall provide an actual Net Amount at Risk in subsequent monthly reports.
Additional reports reasonably requested by a Party will be provided by the other
Party in a timely manner.
B. Reporting Format and Medium
The information to be provided by the Ceding Company in these monthly reports to
the Reinsurer shall be in a format, and 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.
The Ceding Company shall inform the Reinsurer at least one month in advance of
any change in the reporting format or data prior to its use in reports to the
Reinsurer. The Ceding Company shall provide the Reinsurer with a test file
containing such a change prior to its implementation in the production of
reports.
C. Reporting Delays
The Ceding Company shall inform the Reinsurer of any material delays.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
Amendment #2 -- Effective 10/1/2008
3
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
SINGLE LIFE PLANS OF INSURANCE
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE*
-------------------------------------------------------------------------------------------------------
Stag UL 1980 CSO M/F SINS Ultimate ALB A
Hartford Bicentennial UL Founders 2001 CSO M/F S/NS Ultimate ANB A
Hartford UL CV 1980 CSO M/F S/NS Ultimate ALB A
Stag Wall Street VUL 1980 CSO M/F S/NS Ultimate ALB A
Stag Protector II VUL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Leaders VUL Legacy 2001 CSO M/F Composite Ultimate ANB A
Stag Accumulator II VUL 1980 CSO M/F Unismoke Ultimate ALB A
Hartford Leaders VUL Liberty (a) 1980 CSO M/F Unismoke Ultimate ANB A
Hartford Leaders VUL Liberty (b) 2001 CSO M/F Composite Ultimate ANB A
Life Solutions II UL (a) 1980 CSO M/F S/NS Ultimate ALB A
Life Solutions II UL (b) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Advanced Universal Life 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Freedom 2001 CSO M/F SINS Ultimate ANB B
Hartford Quantum II VUL (a) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Quantum II VUL (b) 2001 CSO M/F S/NS Ultimate ANB A
Hartford ExtraOrdinary Whole Life (a) 2001 CSO M/F S/NS Ultimate ALB A
Hartford ExtraOrdinary Whole Life (b) 2001 CSO M/F S/NS Ultimate ANB A
Annual Renewable Term 2001 CSO M/F S/NS Ultimate ANB C
RIDERS PROVIDING DEATH BENEFITS THAT ARE RIDERS THAT PROVIDE ADDITIONAL
ELIGIBLE FOR REINSURANCE: BENEFITS BUT THAT ARE NOT ELIGIBLE
FOR REINSURANCE:
Primary Insured Term Rider Accidental Death Benefit (ADB) Rider
Other Covered Insured Term Life Rider Accelerated Benefit Rider (ABR)
Cost of Living Adjustment (COLA) Rider LifeAccess Accelerated Ben. Rider
(LAABR)
Policy Continuation Rider
NOTE: NAR Type for term riders above is C. Policy Protection Rider (PPR)
For COLA Rider, NAR Type follows Enhanced No Lapse Guarantee Rider
Base Policy to which it is attached. Lifetime No Lapse Guarantee Rider
Guar. Min. Accum. Benefit (GMAB)
Rider
Paid-Up Life Insurance Rider
Conversion Option Rider
Overloan Protection Rider
Waiver of Specified Amount (WSA)
Rider
Waiver of Monthly Deductions (WMD)
Rider
Children's Life Insurance Rider
Foreign Travel Exclusion Rider
Estate Tax Repeal Benefit Rider
Modified Surrender Value Rider
------------
* NAR Type is described in Schedule B.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
Amendment #2 -- Effective 10/1/2008
4
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE (CONTINUED):
Cash Surrender Value Endorsement
Automatic Premium Payment Rider
Additional Premium Rider
Qualified Plan Rider
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Primary Insured Term Rider: Provides additional level term life coverage on the
base policy insured.
Other Covered Insured Term Life Rider: Provides level term life coverage on an
insured other than the base policy insured.
Cost of Living Adjustment (COLA) Rider: Provides for biennial face amount
increases, without underwriting, based on increases in the Consumer Price Index.
The maximum amount of any single increase is $50,000. Any increase can be
declined by the policyholder, which stops future increases. Available only at
issue and only for non-substandard issue ages 0 through 60.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Accidental Death Benefit Rider: Pays an additional death benefit if the death on
the insured is caused by a qualifying accident.
Accelerated Benefit Rider: Provides the policyholder up to 100% of the death
benefit, discounted with interest, if the insured's life expectancy is 12 months
or less. After acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
LifeAccess Accelerated Benefit Rider (LAABR): Provides for monthly benefits (up
to 2% of death benefit) if insured meets certain ADL and home-care requirements.
During and after acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
Policy Continuation Rider: Intended to prevent the lapse of highly loaned
policies.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
Amendment #2 -- Effective 10/1/2008
5
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
primary insured term rider from lapse as long as the Policy Protection Account
Value ("shadow accounts") is not negative.
Enhanced No Lapse Guarantee Rider: Provides that the policy will not lapse as
long as cumulative premiums paid less indebtedness and less withdrawals are
greater than or equal to the cumulative no lapse guarantee premiums. Length of
guarantee varies by issue age.
Lifetime No Lapse Guarantee Rider: Same as Enhanced No Lapse Guarantee Rider but
with lifetime guarantee.
Guaranteed Minimum Accumulation Benefit (GMAB) Rider: Provides, at the end of
the GMAB Guarantee Period (usually 20 years), that the policy Account Value will
be increased, if necessary, to equal the sum of gross premiums paid to that
date. There is a small monthly charge and a minimum cumulative premium
requirement to keep the rider in force.
Paid-Up Life Insurance Rider: Similar to the GMAB rider, with the same Guarantee
Period, a monthly charge, and a cumulative premium requirement. At end of the
Guarantee Period, the owner may elect to change coverage to paid-up life using
the Account Value as a 5% NSP to determine the amount of coverage; however, the
amount of coverage will never be lower than the sum of gross premiums paid to
that date. Once elected, premiums are no longer payable.
Conversion Option Rider: During certain policy years and prior to the insured's
attained age 70, the policy may be converted, without evidence of insurability,
to any permanent plan of life insurance the Ceding Company then makes available
for conversions of this policy.
Overloan Protection Rider: Protects a policy from terminating due to overloan.
Waiver of Specified Amount (WSA) Rider: Waives a specified amount monthly while
the insured is disabled.
Waiver of Monthly Deductions (WMD) Rider: Waives monthly deduction amounts while
the insured is disabled.
Children's Life Insurance Rider: Provides level term life coverage for each
child of the insured.
Foreign Travel Exclusion Rider: Provides a limited death benefit (Account Value
less indebtedness) if the insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
Estate Tax Repeal Benefit Rider: Pays the policy Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Modified Surrender Value Rider: Changes the Cash Surrender Value definition (to
equal the Account Value) if the policy is surrendered within 3 years after the
policy issue date.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
Amendment #2 -- Effective 10/1/2008
6
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
Cash Surrender Value Endorsement: Provides for enhanced Cash Surrender Value
(equal to the current Account Value) in the event of policy surrender in the
first 4 policy years, unless the policy is exchanged under Section 1035 to
another company's policy.
Automatic Premium Payment Rider: Provides for any Scheduled Premium due and
unpaid by the end of any Policy Grace Period to be paid by an automatic
deduction from the Account Value, if the Account Value exceeds the Guaranteed
Cash Value.
Additional Premium Rider: Allows additional premium amounts to be paid at the
same payment intervals as scheduled premiums.
Qualified Plan Rider: This rider indicates that the policy is owned by a
qualified plan, details the policy owner's reporting responsibilities to The
Hartford, and describes features and activities that are unavailable when the
policy is owned by a Qualified Plan.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
Amendment #2 -- Effective 10/1/2008
7
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
LAST SURVIVOR PLANS OF INSURANCE
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE*
-------------------------------------------------------------------------------------------------------
Hartford Leaders VUL Joint Legacy 2001 CSO M/F S/NS Ultimate ALB A
Hartford Leaders VUL Joint Legacy II 2001 CSO M/F S/NS Ultimate ANB A
Hartford Advanced Last Survivor UL 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Joint Freedom 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Joint Freedom II 2001 CSO M/F S/NS Ultimate ANB B
------------
* NAR Type is described in Schedule B.
RIDERS PROVIDING DEATH BENEFITS THAT ARE RIDERS THAT PROVIDE ADDITIONAL
ELIGIBLE FOR REINSURANCE BENEFITS BUT THAT ARE NOT ELIGIBLE
FOR REINSURANCE:
Estate Protection Rider (NAR Type is C) LS Exchange Option Rider
Policy Protection Rider
Estate Tax Repeal Rider
Foreign Travel Exclusion Rider
Guar. Min. Accum. Benefit (GMAB)
Rider
Paid-Up Life Insurance Rider
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Estate Protection Rider: This rider provides last survivor level term life
insurance on the base policy insureds for three years.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
LS Exchange Option Rider: Allows a Last Survivor policy to be split into two
Single Life policies, without new evidence of insurability, if divorce, business
dissolution, or estate-tax repeal or reduction occurs. The face amount of each
new Single Life policy will equal one half of the Last Survivor policy face
amount. Upon a split, reinsurance will continue at point-in-scale rates for each
single life, as documented in Section X.C. (This rider is not available when one
of the insureds is uninsurable or above Table H.)
Policy Protection Rider: Protects the death benefit of the base policy and any
Estate Protection Rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
Amendment #2 -- Effective 10/1/2008
8
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE OCTOBER 1, 2008
Estate Tax Repeal Rider: This rider will pay the Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Foreign Travel Exclusion: Provides a limited death benefit (Account Value less
indebtedness) if either insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
GMAB Rider and Paid-Up Life Insurance Rider: Same as Single Life riders.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
Amendment #2 -- Effective 10/1/2008
9
SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
AUTOMATIC REINSURANCE: The Ceding Company shall retain its available retention
on each risk, defined below as the Retained Net Amount at Risk, subject to the
applicable Ceding Company's Treaty Retention Limit shown in Exhibit II.
The Reinsurer will automatically reinsure a portion of the remainder of the
risk, called the Reinsured Net Amount at Risk, as defined below in this Schedule
B.
FACULTATIVE REINSURANCE: The Reinsurer will reinsure X% (as determined at issue)
of the Total Net Amount at Risk for the risk.
TOTAL ALLOCATION LIMIT (TAL): As shown in Exhibit II.
CEDING COMPANY'S TREATY RETENTION LIMIT (CCTRL): As shown in Exhibit II.
CEDING COMPANY'S ALLOCATED RETENTION (CCAR): As shown in Exhibit II.
CURRENT RETENTION (CURRRET) = Current amount of life insurance retained by the
Ceding Company and its affiliated companies on the life for in-force life
insurance coverage. (For Last Survivor risks, see the Last Survivor Limits and
Retention Worksheet in Exhibit II.)
REINSURER'S ALLOCATED RETENTION (REINSARET): As shown in Exhibit II.
REINSURER'S ATTACHMENT POINT (REINSAPT): As shown in Exhibit II.
NAR TYPE for the Plan of Insurance to be reinsured under this Agreement, as
shown in Schedule A.
STEP 1 -- DETERMINE TOTAL NET AMOUNT AT RISK FOR THE COVERAGE*
TOTAL NET AMOUNT AT RISK (TOTNAR) =
For NAR TYPE A, Death Benefit minus the Account Value.
For NAR TYPE B, Death Benefit minus the Working Reserve, where
Working Reserve = (i) x (ii) / (iii), and
* In cases where the current Working Reserve is not available, the Ceding
Company may estimate such amount using either the most recent Working
Reserve or the Account Value.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
Amendment #2 -- Effective 10/1/2008
10
SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
STEP 1 -- DETERMINE TOTAL NET AMOUNT AT RISK FOR THE COVERAGE* (CONTINUED)
For NAR TYPE C, Death Benefit.
STEP 2 -- DETERMINE NET AMOUNT AT RISK FOR EACH "LAYER" OF COVERAGE
STEP 3 -- DETERMINE THE NAR FOR THE CEDING COMPANY AND THEN FOR THE REINSURER
MINIMUM REINSURANCE CESSION: AUTOMATIC:
FACULTATIVE:
LEAD REINSURER: Swiss Re Life & Hearth America Inc.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
Amendment 2 -- Effective October 1, 2008
11
EXHIBIT II
RETENTION, BINDING, AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
(FOR SPECIFICS ON CALCULATION OF LIMITS WITH LAST SURVIVOR COVERAGE, SEE
WORKSHEET ON PAGE 4)
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
Amendment 2 -- Effective October 1, 2008
12
EXHIBIT II
RETENTION, BINDING, AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
(FOR SPECIFICS ON CALCULATION OF LIMITS WITH LAST SURVIVOR COVERAGE, SEE
WORKSHEET ON PAGE 4)
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
Amendment 2 -- Effective October 1, 2008
13
EXHIBIT II
RETENTION, BINDING, AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
EFFECTIVE OCTOBER 1, 2008
[Redacted]
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
Amendment 2 -- Effective October 1, 2008
14
EXHIBIT II
RETENTION, BINDING, AND TOTAL POOL ISSUE LIMITS
APPLICABLE TO ALL SINGLE LIFE AND LAST SURVIVOR PERMANENT LIFE BUSINESS
EFFECTIVE OCTOBER 1, 2008
[Redacted]
LAST SURVIVOR LIMITS AND XXXXXXXXX WORKSHEET
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
Amendment 2 -- Effective October 1, 2008
15
AMENDMENT 3
EFFECTIVE JULY 1, 2010
TO THE
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE INSURANCE COMPANY ("CEDING COMPANY")
AND
SWISS RE LIFE & HEALTH AMERICA INC. ("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to include re-priced versions
of the Hartford Bicentennial UL Freedom and Hartford Bicentennial UL Joint
Freedom II products in the Agreement, for policies issued on or after the
effective date of this Amendment.
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
1. The above recitals are true and accurate and are incorporated herein.
2. Schedule A is deleted in its entirety and replaced with the attached revised
Schedule A.
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
Allocated Retention Pool -- Effective 10/01/2008
Between HL and Swiss Re
Amendment 3 -- Effective July 1, 2010
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of July 1,2010.
SWISS RE LIFE & HEALTH AMERICA INC.
By: /s/ [ILLEGIBLE] Attest: /s/ [ILLEGIBLE]
----------------------------- -----------------------------
Name: [ILLEGIBLE] Name: [ILLEGIBLE]
Title: Senior Vice President Title: Vice President
Date: August 2 2010 Date: August 2, 2010
HARTFORD LIFE INSURANCE COMPANY
By: /s/ Xxxxxxx Xxxxxxxxx Attest: /s/ Xxxxxxx Xxxxxx
----------------------------- -----------------------------
Name: Xxxxxxx Xxxxxxxxx Name: Xxxxxxx Xxxxxx
Title: Assistant Vice President & Title: Senior Vice President &
Actuary Actuary
Date: 8/16/2010 Date: 8/16/2010
Allocated Retention Pool -- Effective 10/01/2008
Between HL and Swiss Re
Amendment 3 -- Effective July 1, 2010
2
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE JULY 1, 2010
SINGLE LIFE PLANS OF INSURANCE
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE*
-------------------------------------------------------------------------------------------------
Stag UL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Bicentennial UL Founders 2001 CSO M/F S/NS Ultimate ANB A
Hartford UL CV 1980 CSO M/F S/NS Ultimate ALB A
Stag Wall Street VUL 1980 CSO M/F S/NS Ultimate ALB A
Stag Protector II VUL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Leaders VUL Legacy 2001 CSO M/F Composite Ultimate ANB A
Stag Accumulator II VUL 1980 CSO M/F Unismoke Ultimate ALB A
Hartford Leaders VUL Liberty (a) 1980 CSO M/F Unismoke Ultimate ANB A
Hartford Leaders VUL Liberty (b) 2001 CSO M/F Composite Ultimate ANB A
Life Solutions II UL (a) 1980 CSO M/F S/NS Ultimate ALB A
Life Solutions II UL(b) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Advanced Universal Life 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Freedom 2001 CSO M/F S/NS Ultimate ANB B
(a)
Hartford Bicentennial UL Freedom 2001 CSO M/F S/NS Ultimate ANB A
(b)
Hartford Quantum II VUL (a) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Quantum II VUL (b) 2001 CSO M/F S/NS Ultimate ANB A
Hartford ExtraOrdinary Whole Life 2001 CSO M/F S/NS Ultimate ALB A
(a)
Hartford ExtraOrdinary Whole Life 2001 CSO M/F S/NS Ultimate ANB A
(b)
Hartford Bicentennial UL Founders 2001 CSO M/F S/NS Ultimate ANB A
II
Hartford Bicentennial UL Founders
II
Extended Value Option 2001 CSO M/F S/NS Ultimate ANB A
Annually Renewable Term (ART) 2001 CSO M/F S/NS Ultimate ANB C
------------
* NAR Type is described in Schedule B.
Allocated Retention Pool -- Effective 10/01/2008
Between HL and Swiss Re
Amendment 3 -- Effective July 1, 2010
3
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE JULY 1, 2010
SINGLE LIFE PLANS OF INSURANCE
RIDERS PROVIDING DEATH RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT
BENEFITS THAT ARE ELIGIBLE ARE NOT ELIGIBLE FOR REINSURANCE:
FOR REINSURANCE:
Primary Insured Term Rider Accidental Death Benefit (ADB) Rider
Other Covered Insured Term Accelerated Benefit Rider (ABR)
Life Rider
Cost of Living Adjustment LifeAccess Accelerated Ben. Rider (LAABR)
(COLA) Rider
Policy Continuation Rider
Policy Protection Rider (PPR)
Enhanced No Lapse Guarantee Rider
NOTE: NAR Type for term Lifetime No Lapse Guarantee Rider
riders above is C.
For COLA Rider, NAR Type Guar. Min. Accum. Benefit (GMAB) Rider
follows
Base Policy to which it is Paid-Up Life Insurance Rider
attached.
Conversion Option Rider
Overloan Protection Rider
Waiver of Specified Amount
(WSA) Rider
Waiver of Monthly Deductions (WMD) Rider
Children's Life Insurance Rider
Foreign Travel Exclusion Rider
Estate Tax Repeal Benefit Rider
Modified Surrender Value Rider
Cash Surrender Value Endorsement
Automatic Premium Payment Rider
Additional Premium Rider
Qualified Plan Rider
Owner Designated Settlement Option Rider
Allocated Retention Pool -- Effective 10/01/2008
Between HL and Swiss Re
Amendment 3 -- Effective July 1, 2010
4
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE JULY 1, 2010
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Primary Insured Term Rider: Provides additional level term life coverage on the
base policy insured.
Other Covered Insured Term Life Rider: Provides level term life coverage on an
insured other than the base policy insured.
Cost of Living Adjustment (COLA) Rider: Provides for biennial face amount
increases, without underwriting, based on increases in the Consumer Price Index.
The maximum amount of any single increase is $50,000. Any increase can be
declined by the policyholder, which stops future increases. Available only at
issue and only for non-substandard issue ages 0 through 60.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Accidental Death Benefit Rider: Pays an additional death benefit if the death
on the insured is caused by a qualifying accident.
Accelerated Benefit Rider: Provides the policyholder up to 100% of the death
benefit, discounted with interest, if the insured's life expectancy is 12 months
or less. After acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
LifeAccess Accelerated Benefit Rider (LAABR): Provides for monthly benefits (up
to 2% of death benefit) if insured meets certain ADL and home-care requirements.
During and after acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
Policy Continuation Rider: Intended to prevent the lapse of highly loaned
policies.
Policy Protection Rider: Protects the death benefit of the base policy and any
primary insured term rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Enhanced No Lapse Guarantee Rider: Provides that the policy will not lapse as
long as cumulative premiums paid less indebtedness and less withdrawals are
greater than or equal to the cumulative no lapse guarantee premiums. Length of
guarantee varies by issue age.
Lifetime No Lapse Guarantee Rider: Same as Enhanced No Lapse Guarantee Rider
but with lifetime guarantee.
Guaranteed Minimum Accumulation Benefit (GMAB) Rider: Provides, at the end of
the GMAB Guarantee Period (usually 20 years), that the policy Account Value will
be increased, if necessary, to equal the sum of gross premiums paid to that
date. There is a small monthly charge and a minimum cumulative premium
requirement to keep the rider in force.
Allocated Retention Pool -- Effective 10/01/2008
Between HL and Swiss Re
Amendment 3 -- Effective July 1, 2010
5
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE JULY 1, 2010
Paid-Up Life Insurance Rider: Similar to the GMAB rider, with the same
Guarantee Period, a monthly charge, and a cumulative premium requirement. At end
of the Guarantee Period, the owner may elect to change coverage to paid-up life
using the Account Value as a 5% NSP to determine the amount of coverage;
however, the amount of coverage will never be lower than the sum of gross
premiums paid to that date. Once elected, premiums are no longer payable.
Conversion Option Rider: During certain policy years and prior to the insured's
attained age 70, the policy may be converted, without evidence of insurability,
to any permanent plan of life insurance the Ceding Company then makes available
for conversions of this policy.
Overloan Protection Rider: Protects a policy from terminating due to overloan.
Waiver of Specified Amount (WSA) Rider: Waives a specified amount monthly while
the insured is disabled.
Waiver of Monthly Deductions (WMD) Rider: Waives monthly deduction amounts
while the insured is disabled.
Children's Life Insurance Rider: Provides level term life coverage for each
child of the insured.
Foreign Travel Exclusion Rider: Provides a limited death benefit (Account Value
less indebtedness) if the insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
Estate Tax Repeal Benefit Rider: Pays the policy Account Value less
indebtedness if the Federal Estate Tax Law is fully repealed by December 31,
2010, and the Ceding Company receives a request for this benefit amount from the
policy owner.
Modified Surrender Value Rider: Changes the Cash Surrender Value definition (to
equal the Account Value) if the policy is surrendered within 3 years after the
policy issue date.
Cash Surrender Value Endorsement: Provides for enhanced Cash Surrender Value
(equal to the current Account Value) in the event of policy surrender in the
first 4 policy years, unless the policy is exchanged under Section 1035 to
another company's policy.
Automatic Premium Payment Rider: Provides for any Scheduled Premium due and
unpaid by the end of any Policy Grace Period to be paid by an automatic
deduction from the Account Value, if the Account Value exceeds the Guaranteed
Cash Value.
Additional Premium Rider: Allows additional premium amounts to be paid at the
same payment intervals as scheduled premiums.
Qualified Plan Rider: This rider indicates that the policy is owned by a
qualified plan, details the policy owner's reporting responsibilities to The
Hartford, and describes features and activities that are unavailable when the
policy is owned by a Qualified Plan.
Owner Designated Settlement Option. This rider allows the policy owner to
designate a Settlement Option to be used for the payment of Death Proceeds.
Allocated Retention Pool -- Effective 10/01/2008
Between HL and Swiss Re
Amendment 3 -- Effective July 1, 2010
6
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE JULY 1, 2010
LAST SURVIVOR PLANS OF INSURANCE
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE*
--------------------------------------------------------------------------------------------------------
Hartford Leaders VUL Joint Legacy 2001 CSO M/F S/NS Ultimate ALB A
Hartford Leaders VUL Joint Legacy II 2001 CSO M/F S/NS Ultimate ANB A
Hartford Advanced Last Survivor UL 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Joint Freedom 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Joint Freedom II (a) 2001 CSO M/F S/NS Ultimate ANB B
Hartford Bicentennial UL Joint Freedom II (b) 2001 CSO M/F S/NS Ultimate ANB A
------------
* NAR Type is described in Schedule B
RIDERS PROVIDING DEATH RIDERS THAT PROVIDE ADDITIONAL
BENEFITS THAT ARE BENEFITS
ELIGIBLE FOR REINSURANCE BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Estate Protection Rider (NAR LS Exchange Option Rider
Type is C)
Policy Protection Rider
Estate Tax Repeal Rider
Foreign Travel Exclusion Rider
Guar. Min. Accum. Benefit (GMAB) Rider
Paid-Up Life Insurance Rider
Owner Designated Settlement Option
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Estate Protection Rider: This rider provides last survivor level term life
insurance on the base policy insureds for three years.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
LS Exchange Option Rider: Allows a Last Survivor policy to be split into two
Single Life policies, without new evidence of insurability, if divorce, business
dissolution, or estate-tax repeal or reduction occurs. The face amount of each
new Single Life policy will equal one half of the Last Survivor policy face
amount. Upon a split, reinsurance will continue at point-in-scale rates for each
single life, as documented in Section X.C. (This rider is not available when one
of the insureds is uninsurable or above Table H.)
Policy Protection Rider: Protects the death benefit of the base policy and any
Estate Protection Rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Allocated Retention Pool -- Effective 10/01/2008
Between HL and Swiss Re
Amendment 3 -- Effective July 1, 2010
7
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE JULY 1, 2010
Estate Tax Repeal Rider: This rider will pay the Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Foreign Travel Exclusion: Provides a limited death benefit (Account Value less
indebtedness) if either insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
GMAB Rider and Paid-Up Life Insurance Rider: Same as Single Life riders.
Owner Designated Settlement Option. This rider allows the policy owner to
designate a Settlement Option to be used for the payment of Death Proceeds.
Allocated Retention Pool -- Effective 10/01/2008
Between HL and Swiss Re
Amendment 3 -- Effective July 1, 2010
8
AMENDMENT 4
EFFECTIVE SEPTEMBER 7, 2010
TO THE
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE INSURANCE COMPANY ("CEDING COMPANY")
AND
SWISS RE LIFE & HEALTH AMERICA INC. ("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to include Hartford Frontier
Indexed Universal Life and Hartford Frontier Indexed Universal Life Extended
Value Option as Base Policies under the Agreement, for policies issued on or
after the effective date of this Amendment.
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
1. The above recitals are true and accurate and are incorporated herein.
2. Schedule A is deleted in its entirety and replaced with the attached revised
Schedule A.
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
Allocated Retention Pool -- Effective 10/01/2008
Between HL and Swiss Re
Amendment 4 -- Effective September 7, 2010
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of September 7, 2010.
SWISS RE LIFE & HEALTH AMERICA INC.
By: /s/ [ILLEGIBLE] Attest: /s/ [ILLEGIBLE]
------------------------------ ------------------------------
Name: [ILLEGIBLE] Name: [ILLEGIBLE]
Title: Vice President Title: Vice President
Date: 10/21/2010 Date: 10/21/10
HARTFORD LIFE INSURANCE COMPANY
By: /s/ Xxxxxxx Xxxxxxxxx Attest: /s/ Xxxx Xxxxxxx
------------------------------ ------------------------------
Name: Xxxxxxx Xxxxxxxxx, FSA, MAAA Name: Xxxx Xxxxxxx, FSA, MAAA
Title: Asst. Vice President and Title: Asst. Vice President and
Actuary Individual Life Actuary Individual Life
Product Management Product Management
Date: 11/11/2010 Date: 11-11-2010
Allocated Retention Pool -- Effective 10/01/2008
Between HL and Swiss Re
Amendment 4 -- Effective September 7, 2010
2
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE SEPTEMBER 7, 2010
SINGLE LIFE PLANS OF INSURANCE
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE*
----------------------------------------------------------------------------------------------------------------
Stag UL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Bicentennial UL Founders 2001 CSO M/F S/NS Ultimate ANB A
Hartford UL CV 1980 CSO M/F S/NS Ultimate ALB A
Stag Wall Street VUL 1980 CSO M/F S/NS Ultimate ALB A
Stag Protector II VUL 1980 CSO M/F S/NS Ultimate ALB A
Hartford Leaders VUL Legacy 2001 CSO M/F Composite Ultimate ANB A
Stag Accumulator II VUL 1980 CSO M/F Unismoke Ultimate ALB A
Hartford Leaders VUL Liberty (a) 1980 CSO M/F Unismoke Ultimate ANB A
Hartford Leaders VUL Liberty (b) 2001 CSO M/F Composite Ultimate ANB A
Life Solutions II UL (a) 1980 CSO M/F S/NS Ultimate ALB A
Life Solutions II UL (b) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Advanced Universal Life 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Freedom (a) 2001 CSO M/F S/NS Ultimate ANB B
Hartford Bicentennial UL Freedom (b) 2001 CSO M/F S/NS Ultimate ANB A
Hartford Quantum II VUL (a) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Quantum II VUL (b) 2001 CSO M/F S/NS Ultimate ANB A
Hartford Extraordinary Whole Life (a) 2001 CSO M/F S/NS Ultimate ALB A
Hartford Extraordinary Whole Life (b) 2001 CSO M/F S/NS Ultimate ANB A
Hartford Bicentennial UL Founders II 2001 CSO M/F S/NS Ultimate ANB A
Hartford Bicentennial UL Founders II Extended 2001 CSO M/F S/NS Ultimate ANB A
Value Option
Annually Renewable Term (ART) 2001 CSO M/F S/NS Ultimate ANB C
Hartford Frontier Indexed Universal Life 2001 CSO M/F S/NS Ultimate ANB A
Hartford Frontier Indexed Universal Life 2001 CSO M/F S/NS Ultimate ANB A
Extended Value Option
------------
* NAR Type is described in Schedule B.
Allocated Retention Pool -- Effective 10/01/2008
Between HL and Swiss Re
Amendment 4 -- Effective September 7, 2010
3
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE SEPTEMBER 7, 2010
SINGLE LIFE PLANS OF INSURANCE
RIDERS PROVIDING DEATH BENEFITS THAT RIDERS THAT PROVIDE ADDITIONAL
ARE ELIGIBLE FOR REINSURANCE: BENEFITS BUT THAT ARE NOT ELIGIBLE
FOR REINSURANCE:
Accidental Death Benefit (ADB) Rider
Primary Insured Term Rider Accelerated Benefit Rider (ABR)
Other Covered Insured Term Life Rider LifeAccess Accelerated Ben. Rider
(LAABR)
Cost of Living Adjustment (COLA) Policy Continuation Rider
Rider
Policy Protection Rider (PPR)
Enhanced No Lapse Guarantee Rider
NOTE: NAR Type for term riders above Lifetime No Lapse Guarantee Rider
is C.
For COLA Rider, NAR Type follows Base Guar. Min. Accum. Benefit (GMAB)
Policy to which it is attached. Rider
Paid-Up Life Insurance Rider
Conversion Option Rider
Overloan Protection Rider
Waiver of Specified Amount (WSA)
Rider
Waiver of Monthly Deductions (WMD)
Rider
Children's Life Insurance Rider
Foreign Travel Exclusion Rider
Estate Tax Repeal Benefit Rider
Modified Surrender Value Rider
Cash Surrender Value Endorsement
Automatic Premium Payment Rider
Additional Premium Rider
Qualified Plan Rider
Owner Designated Settlement Option
Rider
Allocated Retention Pool -- Effective 10/01/2008
Between HL and Swiss Re
Amendment 4 -- Effective September 7, 2010
4
SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE SEPTEMBER 7, 2010
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Primary Insured Term Rider: Provides additional level term life coverage on the
base policy insured.
Other Covered Insured Term Life Rider: Provides level term life coverage on an
insured other than the base policy insured.
Cost of Living Adjustment (COLA) Rider: Provides for biennial face amount
increases, without underwriting, based on increases in the Consumer Price Index.
The maximum amount of any single increase is $50,000. Any increase can be
declined by the policyholder, which stops future increases. Available only at
issue and only for non-substandard issue ages 0 through 60.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
Accidental Death Benefit Rider: Pays an additional death benefit if the death on
the insured is caused by a qualifying accident.
Accelerated Benefit Rider: Provides the policyholder up to 100% of the death
benefit, discounted with interest, if the insured's life expectancy is 12 months
or less. After acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
LifeAccess Accelerated Benefit Rider (LAABR): Provides for monthly benefits (up
to 2% of death benefit) if insured meets certain ADL and home-care requirements.
During and after acceleration, the Ceding Company shall continue to pay the
Reinsurer Reinsurance Premiums on the Reinsured Net Amount at Risk based on the
Death Benefit prior to acceleration, and the Reinsurer shall be liable for such
Reinsured Net Amount at Risk upon the death of the insured.
Policy Continuation Rider: Intended to prevent the lapse of highly loaned
policies.
Policy Protection Rider: Protects the death benefit of the base policy and any
primary insured term rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
Enhanced No Lapse Guarantee Rider: Provides that the policy will not lapse as
long as cumulative premiums paid less indebtedness and less withdrawals are
greater than or equal to the cumulative no lapse guarantee premiums, Length of
guarantee varies by issue age.
Lifetime No Lapse Guarantee Rider: Same as Enhanced No Lapse Guarantee Rider but
with lifetime guarantee.
Guaranteed Minimum Accumulation Benefit (GMAB) Rider: Provides, at the end of
the GMAB Guarantee Period (usually 20 years), that the policy Account Value will
be increased, if necessary, to equal the sum of gross premiums paid to that
date. There is a small monthly charge and a minimum cumulative premium
requirement to keep the rider in force.
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SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE SEPTEMBER 7, 2010
Paid-Up Life Insurance Rider: Similar to the GMAB rider, with the same Guarantee
Period, a monthly charge, and a cumulative premium requirement. At end of the
Guarantee Period, the owner may elect to change coverage to paid-up life using
the Account Value as a 5% NSP to determine the amount of coverage; however, the
amount of coverage will never be lower than the sum of gross premiums paid to
that date. Once elected, premiums are no longer payable.
Conversion Option Rider: During certain policy years and prior to the insured's
attained age 70, the policy may be converted, without evidence of insurability,
to any permanent plan of life insurance the Ceding Company then makes available
for conversions of this policy.
Overloan Protection Rider: Protects a policy from terminating due to overloan.
Waiver of Specified Amount (WSA) Rider: Waives a specified amount monthly while
the insured is disabled.
Waiver of Monthly Deductions (WMD) Rider: Waives monthly deduction amounts while
the insured is disabled.
Children's Life Insurance Rider: Provides level term life coverage for each
child of the insured.
Foreign Travel Exclusion Rider: Provides a limited death benefit (Account Value
less indebtedness) if the insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
Estate Tax Repeal Benefit Rider: Pays the policy Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Modified Surrender Value Rider: Changes the Cash Surrender Value definition (to
equal the Account Value) if the policy is surrendered within 3 years after the
policy issue date.
Cash Surrender Value Endorsement: Provides for enhanced Cash Surrender Value
(equal to the current Account Value) in the event of policy surrender in the
first 4 policy years, unless the policy is exchanged under Section 1035 to
another company's policy.
Automatic Premium Payment Rider: Provides for any Scheduled Premium due and
unpaid by the end of any Policy Grace Period to be paid by an automatic
deduction from the Account Value, if the Account Value exceeds the Guaranteed
Cash Value.
Additional Premium Rider: Allows additional premium amounts to be paid at the
same payment intervals as scheduled premiums.
Qualified Plan Rider: This rider indicates that the policy is owned by a
qualified plan, details the policy owner's reporting responsibilities to The
Hartford, and describes features and activities that are unavailable when the
policy is owned by a Qualified Plan.
Owner Designated Settlement Option. This rider allows the policy owner to
designate a Settlement Option to be used for the payment of Death Proceeds.
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SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE SEPTEMBER 7, 2010
LAST SURVIVOR PLANS OF INSURANCE
NAR
BASE POLICY VALUATION MORTALITY TABLE(S) TYPE*
----------------------------------------------------------------------------------------------------------------
Hartford Leaders VUL Joint Legacy 2001 CSO M/F S/NS Ultimate ALB A
Hartford Leaders VUL Joint Legacy II 2001 CSO M/F S/NS Ultimate ANB A
Hartford Advanced Last Survivor UL 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Joint Freedom 2001 CSO M/F S/NS Ultimate ALB B
Hartford Bicentennial UL Joint Freedom II (a) 2001 CSO M/F S/NS Ultimate ANB B
Hartford Bicentennial UL Joint Freedom II (b) 2001 CSO M/F S/NS Ultimate ANB A
------------
* NAR Type is described in Schedule B
RIDERS PROVIDING DEATH BENEFITS THAT RIDERS THAT PROVIDE ADDITIONAL
ARE ELIGIBLE FOR REINSURANCE BENEFITS BUT THAT ARE NOT ELIGIBLE
FOR REINSURANCE:
Estate Protection Rider (NAR Type is LS Exchange Option Rider
C)
Policy Protection Rider
Estate Tax Repeal Rider
Foreign Travel Exclusion Rider
Guar. Min. Accum. Benefit (GMAB)
Rider
Paid-Up Life Insurance Rider
Owner Designated Settlement Option
RIDER DESCRIPTIONS (Rider descriptions are added for convenience. To the extent
the description conflicts with the terms of the rider, the rider will govern.)
RIDERS PROVIDING DEATH BENEFITS THAT ARE ELIGIBLE FOR REINSURANCE:
Estate Protection Rider: This rider provides last survivor level term life
insurance on the base policy insureds for three years.
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR
REINSURANCE:
LS Exchange Option Rider: Allows a Last Survivor policy to be split into two
Single Life policies, without new evidence of insurability, if divorce, business
dissolution, or estate-tax repeal or reduction occurs. The face amount of each
new Single Life policy will equal one half of the Last Survivor policy face
amount. Upon a split, reinsurance will continue at point-in-scale rates for each
single life, as documented in Section X.C. (This rider is not available when one
of the insureds is uninsurable or above Table H.)
Policy Protection Rider: Protects the death benefit of the base policy and any
Estate Protection Rider from lapse as long as the Policy Protection Account
Value ("shadow account") is not negative.
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SCHEDULE A
PLANS OF INSURANCE COVERED UNDER THIS AGREEMENT
EFFECTIVE SEPTEMBER 7, 2010
Estate Tax Repeal Rider: This rider will pay the Account Value less indebtedness
if the Federal Estate Tax Law is fully repealed by December 31, 2010, and the
Ceding Company receives a request for this benefit amount from the policy owner.
Foreign Travel Exclusion: Provides a limited death benefit (Account Value less
indebtedness) if either insured dies due to travel to, from, or within certain
foreign countries, or due directly or indirectly to illness or injury sustained
during such travel.
GMAB Rider and Paid-Up Life Insurance Rider: Same as Single Life riders.
Owner Designated Settlement Option. This rider allows the policy owner to
designate a Settlement Option to be used for the payment of Death Proceeds.
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AMENDMENT 5
EFFECTIVE OCTOBER 1, 2008
TO THE
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM
REINSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE INSURANCE COMPANY ("CEDING COMPANY")
AND
SWISS RE LIFE & HEALTH AMERICA INC. ("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 Section III.A.1 to
indicate that the insured must satisfy only one of the requirements listed; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
correct Section III.A.6
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 outline how Reinsurance
Premiums will be calculated in the event of a specific option's election under
the Conversion Option Rider; and
WHEREAS, the Ceding Company and the Reinsurer wish to confirm the Reinsurer's
liability for policy increases not subject to new underwriting; 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 correct drafting errors in
Schedule F; and
WHEREAS, the Ceding Company and the Reinsurer wish to replace Exhibit VII to
reflect updated definitions and references.
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. Article III is hereby deleted in its entirety and replaced with the
attached, revised Article III.
3. Section IV.E is hereby deleted in its entirety and replaced with the
following Section IV.E:
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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 or
later as a result of the full acceleration of the death benefit.
4. Article X is hereby deleted in its entirety and replaced with the
attached, revised Article X.
5. Schedule B is hereby deleted in its entirety and replaced with the
attached, revised Schedule B.
6. Schedule F is hereby deleted in its entirety and replaced with the
attached, revised Schedule F.
7. Exhibit VII is hereby deleted in its entirety and replaced with the
attached, revised Exhibit VII.
8. Except as herein amended, all other terms and conditions of the
Agreement shall remain in full force and effect and unchanged.
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below.
SWISS RE LIFE & HEALTH AMERICA INC.
By: /s/ Xxxxxx Xxxx Attest: /s/ Xxxx Xxxxx
------------------------------ ------------------------------
Name: Xxxxxx Xxxx Name: Xxxx Xxxxx
Title: Vice President Title: Assistant Vice President
Date: 7/25/2011 Date: 7/25/2011
HARTFORD LIFE 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: 8-3-2011 Date: 8/5/2011
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ARTICLE III
REINSURANCE COVERAGE
Reinsurance under this Agreement will apply to those Plans of Insurance and
Riders set forth in Schedule A that also fall within a category of policies
eligible for reinsurance under this Agreement as described in Schedule F. Such
reinsurance shall be either on an automatic basis, subject to the requirements
set forth in Section A below, on an automatic processing basis, subject to the
requirements set forth in Section B below, or on a facultative basis, subject to
the requirements set forth in Section C below. The specifications for all
reinsurance under this Agreement are provided in Schedule B.
Once coverage is reinsured on a life under this Agreement, unless the Reinsurer
consents, such consent not to be unreasonably withheld, the Ceding Company or
its affiliate shall continue to retain its share of each risk on that life, as
described in this Agreement and in any other life reinsurance agreement
applicable to risk on that life. Any changes to the Ceding Company's retention,
and any resulting effect on the Automatic Binding Limits, as specified in
Exhibit II, shall be made by amendment to this Agreement, in accordance with
Section I.B.
Each reinsured risk must be issued with a suicide and contestable period equal
to the minimum of (a) two (2) years, (b) the maximum period allowed by
applicable law, or (c) a period agreed to in writing by the Reinsurer.
A. Automatic Reinsurance
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; 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.
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 the
Reinsurance Premium based on the True Assessed Risk Class; or
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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 any risk that is not an Excess Risk, if the Ceding Company submitted any
risk on a life of a proposed insured facultatively to the Reinsurer during the
last three (3) years:
a. for reinsurance capacity, then the Ceding Company shall confirm the
Reinsurer's available capacity for such risk. Upon receipt of the
request, the Reinsurer shall advise the Ceding Company of its
available capacity for the life on the same or next following
business day. After the Reinsurer has advised the Ceding Company of
its available capacity, provided all the other requirements for
Automatic Reinsurance under this Agreement are met, the Ceding
Company may cede to the Reinsurer no more than such amount on an
automatic basis; or
b. for reasons other than reinsurance capacity, and the Reinsurer's
assessment of the risk so submitted was:
(1) the same as, or more favorable than, the Ceding Company's
assessment at that time, then, provided all the other requirements
for Automatic Reinsurance under this Agreement are met, the Ceding
Company may cede the risk under this Agreement on an automatic
basis at its True Assessed Risk Class; or
(2) less favorable than the Ceding Company's assessment at that time,
then, provided all the other requirements for Automatic
Reinsurance under this Agreement are met, the Ceding Company may
provisionally cede the risk under this Agreement on an automatic
basis at its True Assessed Risk Class, provided the Ceding Company
then submits the risk to the Reinsurer for review in accordance
with Section V.E;
otherwise, provided all the other requirements for Automatic Reinsurance under
this Agreement are met, the Ceding Company shall cede the risk under this
Agreement on an automatic basis.
For any risk that is an Excess Risk, 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. For any Excess Risk, the total amount of risk on that life to be reinsured
in the Automatic Pool and under any other individual life reinsurance agreement
with any reinsurer does not exceed the Automatic Binding Limit for that life
shown in Exhibit II.
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7. For any Excess Risk, the total amount of insurance on each life, in force
and applied for in all companies does not exceed the Jumbo Limits as set forth
in Exhibit II. For any such life, the total amount of insurance in force
includes any amount(s) to be replaced. For the Ceding Company's in-force and
applied-for policies on such life, this total amount of insurance includes all
scheduled increases in amount of insurance on such policies.
Any amounts of insurance being replaced by the Ceding Company may be deducted
from this total amount of insurance only under the following conditions:
a. Existing permanent insurance is being replaced by the Ceding
Company, with or without a Section 1035 exchange, and the Ceding
Company has obtained a duly executed absolute assignment of the
insurance being replaced; or
b. Existing term insurance is being replaced by the Ceding Company, and
the Ceding Company has obtained a duly executed absolute assignment
of the insurance being replaced; or
c. An internal replacement is being made, where the Ceding Company is
replacing an in-force policy with a new policy of equal or greater
death benefit.
When the total amount 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. 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 policy is later effected during the lifetime of the insured, 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 from that
effective date of cancellation.
8. The Ceding Company, or its affiliates, accepts its full retention on each
life, as described in this Agreement, taking into account concurrently issued
amounts and all other inforce policies with the Ceding Company, applicable to
risk on that life.
9. To the best of the Ceding Company's knowledge, the policy is not a
stranger-owned life insurance policy (STOLI) or purchased as part of a premium
financing program, except for those programs specified in Schedule E or approved
in writing by the Reinsurer.
10. If all the other requirements for Automatic Reinsurance are met and the
life is a player or coach on a team in the National Hockey League, the National
Football League, the National Basketball Association or Major League Baseball,
and:
a. The risk is not an Excess Risk, then the Ceding Company shall notify
the Reinsurer of this fact at the time of issue of the risk; or
b. The risk is an Excess Risk, then, prior to ceding the risk
automatically under this Agreement, the Ceding Company must confirm
the Reinsurer's available capacity for
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that risk. The Ceding Company, by telephone call or electronic mail,
shall: (i) notify the Reinsurer's Chief Underwriter, or designee, of
the life's name, date of birth, sport and team affiliation, the total
life insurance in force and to be placed on the life, and the amount
of new reinsurance coverage required from the Reinsurer; and (ii)
confirm that an application for insurance on the life has been
completed. The Reinsurer shall endeavor to inform the Ceding Company
of its available capacity for the risk within two business days after
such notification and confirmation. After the Reinsurer has advised
the Ceding Company of the amount of its available capacity, the Ceding
Company may then cede to the Reinsurer no more than that amount on an
automatic basis under this Agreement.
11. The policy is not an Annual Renewable Term policy.
B. Automatic Processing
If the requirements for Automatic Reinsurance are met for a life except for the
requirement stated above in Section A.6, but the total amount of risk on that
life to be reinsured in the Automatic Pool and under any other individual life
reinsurance agreement with any reinsurer does not exceed the Automatic
Processing Limit for that life shown in Exhibit II, then the Ceding Company may
submit to the Lead Reinsurer (designated in Schedule B) all information relating
to the insurability of that life. For Last Survivor policies where one life is
deemed uninsurable, only the information for the other life needs to be
submitted.
The Lead Reinsurer shall review the submitted information to determine if the
life should be reinsured by the Automatic Pool and, if so, on what basis. The
Lead Reinsurer shall endeavor to provide the Ceding Company with a response
within 72 hours of receipt of such information. Approval by the Lead Reinsurer
shall be binding on all other current Automatic Pool reinsurers. This process
shall be known as Automatic Processing and shall be subject to Exhibit II.
Hereinafter, all references to Automatic Reinsurance, coverage automatically
reinsured, and the Automatic Pool will include coverage reinsured through
Automatic Processing.
C. Facultative Reinsurance
If the requirements for Automatic Reinsurance are not met and the Ceding Company
applies for Facultative Reinsurance with the Reinsurer, or if the requirements
for Automatic Reinsurance are met but the Ceding Company prefers to apply for
Facultative Reinsurance with the Reinsurer, then the Ceding Company shall submit
to the Reinsurer sufficient evidence agreed upon between the Ceding Company and
the Reinsurer, relating to the insurability of each life submitted for
Facultative Reinsurance. For Last Survivor policies where one life is deemed
uninsurable, only the information for the other life needs to be submitted.
The Reinsurer shall promptly notify the Ceding Company 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
accepted and coverage is placed.
Once the Ceding Company has notified the Reinsurer in writing of its acceptance
of the Reinsurer's final underwriting offer, then Facultative Reinsurance for
the risk under this Agreement will become effective as described below in
Section IV.B.
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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, utilizing the Annual Rates per $1,000 of Reinsured Net
Amount at Risk as set forth in Exhibit III.
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 the provisions of
Article III shall apply to the increase in reinsurance and
Reinsurance Premiums for the increase shall be based on new-business
rates.
Notwithstanding the foregoing, after termination of this Agreement for new
business, any increases subject to full underwriting must be submitted to the
Reinsurer on a facultative obligatory basis, if, the increase in face amount is
in excess of one million dollars ($1 million); or
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.
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Reinsurance Premiums for increases not subject to full
underwriting shall be calculated on a point-in-scale basis,
utilizing the Annual Rates per $1,000 of Reinsured Net Amount at
Risk as set forth in Exhibit III.
For increases in accordance with B.1.b (1), 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. 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. Reinsurance Premiums for exchanges from one
single life policy reinsured under this Agreement to a different single life
policy will be calculated on a point-in-scale basis using Annual Rates per
$1,000 of Reinsured Net Amount at Risk, as set forth in Exhibit III. Likewise,
Reinsurance Premiums for exchanges from one last survivor policy reinsured under
this Agreement to a different last survivor policy will be calculated on a
point-in-scale basis using Annual Rates per $1,000 of Reinsured Net Amount at
Risk, as set forth in Exhibit III. Reinsurance Premiums for 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 calculated at the applicable single life point-in-scale
Annual Rates per $1,000 of Reinsured Net Amount at Risk, as set forth in Exhibit
III. 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,
utilizing the Annual Rates per $1,000 of Reinsured Net Amount at Risk as set
forth in Exhibit III.
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.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
Amendment #5 -- Effective 10/1/2008
8
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 of
this Article.
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.
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 will be subject to the
Reinsurer's approval. On Automatic Reinsurance, the Reinsurer will accept this
change if the change qualifies under the underwriting practices and guidelines
described in Schedules C, D, or E, as applicable.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
Amendment #5 -- Effective 10/1/2008
9
H. Rescission of Policy Coverage Prior to Death Claim
1. 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.
2. The Ceding Company shall promptly notify the Reinsurer in the event a
rescission is challenged by legal action. The Ceding Company shall also furnish
all information material to such action.
Recognizing the urgent nature of these communications, within ten (10) business
days of receipt of such information, the Reinsurer shall notify the Ceding
Company in writing of the Reinsurer's decision whether or not it shall
participate in the legal and investigation expenses associated with the defense
of the rescission. The Reinsurer may extend the ten-day 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 ten-day period. If the Reinsurer does not
respond to the Ceding Company within the timeframe above, the Reinsurer will be
deemed to have elected to participate in the legal and investigation expenses
associated with the defense of the rescission.
3. 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.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
Amendment #5 -- Effective 10/1/2008
10
SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
AUTOMATIC REINSURANCE: The Ceding Company shall retain its available retention
on each risk, defined below as the Retained Net Amount at Risk, subject to the
applicable Ceding Company's Treaty Retention Limit shown in Exhibit II.
The Reinsurer will automatically reinsure a portion of the remainder of the
risk, called the Reinsured Net Amount at Risk, as defined below in this Schedule
B.
FACULTATIVE REINSURANCE: The Reinsurer will reinsure X% (as determined at
issue) of the Total Net Amount at Risk for the risk.
TOTAL ALLOCATION LIMIT (TAL): As shown in Exhibit II.
CEDING COMPANY'S TREATY RETENTION LIMIT (CCTRL): As shown in Exhibit II.
CEDING COMPANY'S ALLOCATED RETENTION (CCAR): As shown in Exhibit II.
CURRENT RETENTION (CURRRET) = Current amount of life insurance retained by the
Ceding Company and its affiliated companies on the life for in-force life
insurance coverage. (For Last Survivor risks, see the Last Survivor Limits and
Retention Worksheet in Exhibit II.)
REINSURER'S ALLOCATED RETENTION (REINSARET): As shown in Exhibit II.
REINSURER'S ATTACHMENT POINT (REINSAPT): As shown in Exhibit II.
NAR TYPE for the Plan of insurance to be reinsured under this Agreement, as
shown in Schedule A.
STEP 1 -- DETERMINE TOTAL NET AMOUNT AT RISK FOR THE COVERAGE*
TOTAL NET AMOUNT AT RISK (TOTNAR) =
For NAR TYPE A, Death Benefit minus the Account Value.
For NAR TYPE B, Death Benefit minus the Working Reserve, where
Working Reserve = (i) x (ii)/(iii), and
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
Amendment #5 -- Effective 10/1/2008
11
SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
* 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 1 -- DETERMINE TOTAL NET AMOUNT AT RISK FOR THE COVERAGE* (CONTINUED)
For NAR TYPE C, Death Benefit.
STEP 2 -- DETERMINE NET AMOUNT AT RISK FOR EACH "LAYER" OF COVERAGE
STEP 3 -- DETERMINE THE NAR FOR THE CEDING COMPANY AND THEN FOR THE REINSURER
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
Amendment 5 -- Effective 10/1/2008
12
SCHEDULE B
REINSURANCE SPECIFICATIONS
EFFECTIVE OCTOBER 1, 2008
[Redacted]
MINIMUM REINSURANCE APPLICATION: AUTOMATIC:
FACULTATIVE:
LEAD REINSURER: Swiss Re Life & Health America Inc.
Allocated Retention Pool -- Effective 10/1/2008
Between HLIC and Swiss Re
Amendment 5 -- Effective 10/1/2008
13
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 -- Effective 10/1/2008
Between HLIC and Swiss Re
Amendment 5 -- Effective 10/1/2008
14
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
REPORT ACCOUNTING PERIOD DUE DATE
---------------------------------------------------------------------------------------------------------------
1. New Business* Monthly 30th day after month end
(New issues only -- first time policy reported to
the Reinsurer)
2. Renewal Business* Monthly 30th day after month end
(Policies with renewal dates within the Accounting
Period)
3. Changes & Terminations* Monthly 30th day after month end
(includes conversions, replacements reinstatements,
increases, decreases, recaptures, lapses, claims,
etc.)
4. Inforce List Monthly 30th day after month end
(Listing of each policy in force)
5. Statutory Reserves Quarterly 30th day after quarter end
6. Policy Exhibit Monthly 30th day after month end
------------
* Policy record details for new business, renewal business, and changes and
terminations (Reports 1, 2, and 3 above) may be reported as separate reports
or combined into one report, provided the required data elements continue to
be satisfied.
REPORTING SYSTEM:
The system used by the Ceding Company to administer its reinsurance is: XXX.
NOTE:
Certain policy transactions, such as increases, are coded in the policy
administration system as riders, although they do not correspond to filed rider
forms.
Allocated Retention Pool -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 5 -- Effective 10/01/2008
15
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 -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 5 -- Effective 10/01/2008
16
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Joint Age Used for joint coverages using a joint equivalent age for rate searches.
Auto/Fac Indicator Indicates whether the policy is ceded on an Automatic or Facultative basis.
Death Benefit Option This field contains the option chosen by the insured for death proceeds payment.
Participation code This field indicates whether the business is Non Participating (N) or Participating (P).
Issue Type Identifies how a cession was issued. (New business or Continuation)
Underwriting Method Identifies the type of underwriting used to issue the coverage.
Treaty Number This field contains the TAI system treaty number
Reinsurance Type This field is a one-character code that identifies the type of reinsurance. (Y = YRT, C =
Coinsurance & M = Modco.)
Plan This field contains the coverage plan code.
Product code This field contains the product type code.
Product code 1 For Joint Life policies, this field contains the product type code for Insured 1.
Product code 2 For Joint Life policies, this field contains the product type code for Insured 2. (If this
is not a Joint Life policy, this field will be blank.)
Currency Code This field identifies the currency. (USD or CND if applicable)
Last Name -- 1 This field contains the insured's last name. For Joint Life policies, this field contains
the last name for Insured 1. (Maximum of 20 characters)
First Name -- 1 This field contains the insured's first name. For Joint Life policies, this field contains
the first name for Insured 1. (Maximum of 15 characters)
Middle Initial -- 1 This field contains the insured's middle initial. For Joint Life policies, this field
contains the middle initial for Insured 1. (1 character)
Client ID -- 1 This field contains the unique client ID for an insured used to connect lives when
calculating retention on a life. For Joint Life policies, this field indicates the client
ID for Insured 1. (Maximum of 20 characters)
Insured Status -- 1 This field indicates the insured's coverage status. For Joint Life policies, this field
indicates the insured's coverage status for Insured 1.
DOB -- 1 This field contains the insured's date of birth. For Joint Life policies, this field
contains the date of birth for Insured 1.
Sex -- 1 This field is used to identify the sex of the insured. For Joint Life policies, this field
contains the sex of Insured 1.
Pricing Sex -- 1 This field contains the sex used to compute premiums and allowances. For Joint Life
policies, this field contains the pricing sex of Insured 1.
Age -- 1 This field contains the insured's issue age. For Joint Life policies, this field contains
the issue age for Insured 1.
Allocated Retention Pool -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 5 -- Effective 10/01/2008
17
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 rating. For Joint Life
1 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 -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 5 -- Effective 10/01/2008
18
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 rating. For Joint Life
2 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 -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 5 -- Effective 10/01/2008
19
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 original policy. (Used for
Coverage/Rider 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 -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 5 -- Effective 10/01/2008
20
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
POLICY EXHIBIT FILE*
Company Identifies the Ceding Company.
Policy Policy number which is part of the policy key.
Coverage/rider Coverage number which is part of the policy key. This number is used to identify a
specific policy coverage.
Cession ID This field contains the number assigned to this cession by the Reinsurer.
Line of Business This field indicates the line of business the policy falls under.
Report Date This is the month the transaction was reported.
Reinsurance Company Two character reinsurance company ID code that identifies the Reinsurer.
Reporting Company Identifies the company used for reporting purposes. Will be the same as the Reinsurance
Company.
Treaty Number This field contains the TAI system treaty number.
Transaction Type Identifies the type of transaction being reported on the Transaction extract.
Policy Count Each New Business, Continuation & Reinstatement will be assigned a count of 1,
Terminations will be assigned -1 and Renewals/NAR changes will be assigned 0.
Base Ceded Amount This field contains the policy base amount ceded.
ADB ceded Amount This field contains the policy ADB amount ceded.
Waiver Ceded Amount This field contains the policy waiver amount ceded.
Net Amount at Risk The reinsured net amount at risk (NAR).
Plan This field contains the coverage plan code.
Auto/Fac Indicator Indicates whether the policy is ceded on an Automatic or Facultative basis.
Reinsurance Type This field is a one-character code that identifies the type of reinsurance. (Y = YRT, C =
Coinsurance & M = Modco.)
Currency Code This field identifies the currency. (USD or CND if applicable)
------------
* The Policy Exhibit will include a summary of reinsurance movement for a
given period categorized by transactions type. This summary provides the
Cession Count, Ceded Amount and Net Amount at Risk at the beginning of the
reporting period, a summary of the transactions occurring during the report
period as well as what is in force as of the ending of the report period.
Allocated Retention Pool -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 5 -- Effective 10/01/2008
21
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 Reseive + 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 -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 5 -- Effective 10/01/2008
22
EXHIBIT VII
REINSURANCE REPORTS
EFFECTIVE OCTOBER 1, 2008
Age -- 1 This field contains the insured's issue age. For Joint Life policies, this field contains
the issue age for Insured 1.
Class -- 1 This field contains the company's rating of standard or preferred and the smoker class.
For Joint Life policies, this field contains the class for Insured 1.
Sex -- 1 This field is used to identify the sex of the insured. For Joint Life policies, this
field contains the sex of Insured 1.
Mortality -- 1 This field contains the insured's mortality rating. For Joint Life policies, this field
contains the mortality rating for Insured 1.
Insured Status -- 2 This field indicates the insured's coverage status. For Joint Life policies, this field
indicates the insured's coverage status for Insured 2. (If this is not a Joint Life
policy, this field will be blank.)
Age -- 2 This field contains the insured's issue age. For Joint Life policies, this field contains
the issue age for Insured 2. (If this is not a Joint Life policy, this field will be
blank.)
Class -- 2 This field contains the company's rating of standard or preferred and the smoker class.
For Joint Life policies, this field contains the class for Insured 2. (If this is not a
Joint Life policy, this field will be blank.)
Sex -- 2 This field is used to identify the sex of the insured. For Joint Life policies, this
field contains the sex of Insured 2. (If this is not a Joint Life policy, this field will
be blank.)
Mortality -- 2 This field contains the insured's mortality rating. For Joint Life policies, this field
contains the mortality rating for Insured 2. (If this is not a Joint Life policy, this
field will be blank.)
Reserve Statutory or Tax Reserve for each coverage.
Reserve Interest Rate This field identifies the Interest Rate used when calculating reserves.
Reserve Factor Applicable Mortality Basis YRT Factor
Factor Pointer TAI specific field to identify applicable mortality table used when calculating reserves.
Attained Age TAI specific field. Default is 1
Setback TAI specific field. Default is zero
Class Switch TAI specific field. Valuation Class (D = Distinct)
Curtate Switch This field indicates whether reserves are on a curtate or continuous basis.
Caption Hartford's TAI Valuation Method
Error Code Informational field used by Hartford -- Usually Blank
Reserve Class 1 This field contains insured's smoker class. For Joint Life policies, this field contains
the class for Insured 1.
Reserve Class 2 This field contains insured's smoker class. For Joint Life policies, this field contains
the class for Insured 2. (If this is not a Joint Life policy, this field will be blank.)
Currency Code This field identifies the currency. (USD or CND if applicable)
Valuation Interest TAI assigned field that is used to read applicable interest rates when calculating 1/2 cx
Pointer reserves.
NAR Type This field indicates the method used in determining the Total Net Amount at Risk (as
defined in Schedule B).
Allocated Retention Pool -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 5 -- Effective 10/01/2008
23
AMENDMENT 6
EFFECTIVE SEPTEMBER 1, 2010
TO THE
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM
REINSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE INSURANCE COMPANY ("CEDING COMPANY")
AND
SWISS RE LIFE & HEALTH AMERICA INC. ("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 confirm the Reinsurer's
coverage for policies issued under the Issue First policy issuance program.
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
1. The above recitals are true and accurate and are incorporated herein.
2. Article III is hereby amended to include the following paragraph following
Section III.A.:
[Redacted]
Notwithstanding the above, all policies issued under the Issue First program
shall be deemed automatically reinsured. Issue First is a policy issuance
program administered by the Ceding Company, under which a policy can be issued
before the underwriting process has been completed.
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 -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 6 - Effective 09/01/2010
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below.
SWISS RE LIFE & HEALTH AMERICA INC.
By: /s/ Xxxxxx Xxxx Attest: /s/ Xxxx Xxxxx
------------------------------ ------------------------------
Name: Xxxxxx Xxxx Name: Xxxx Xxxxx
Title: Vice President Title: Assistant Vice President
Date: September 12, 2011 Date: September 12, 2011
HARTFORD LIFE INSURANCE COMPANY
By: /s/ Xxxx Xxxxxxx Attest: /s/ Xxxxxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxx Xxxxxxx, FSA, MAAA Name: Xxxxxxx Xxxxxx, FSA, MAAA
Title: Asst. Vice President and Title: Senior Vice President
Actuary Individual Life Individual Life Product
Product Management Management
Date: 9/28/2011 Date: 9/28/2011
Allocated Retention Pool -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 6 -- Effective 09/01/2010
2
AMENDMENT 7
EFFECTIVE OCTOBER 3, 2011
TO THE
AUTOMATIC AND FACULTATIVE MONTHLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE OCTOBER 1, 2008
BETWEEN
HARTFORD LIFE INSURANCE COMPANY ("CEDING COMPANY")
AND
SWISS RE LIFE & HEALTH AMERICA INC. ("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
WHEREAS, the Ceding Company and the Reinsurer wish to revise Schedule A to
include the effective date on which each Base Policy and Rider was added to the
Agreement and to amend the description of certain Riders with such descriptions
being effective from the Effective Date shown for each on Schedule A.
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 -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 7 -- 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.
SWISS RE LIFE & HEALTH AMERICA INC.
By: /s/ [ILLEGIBLE] Attest: /s/ [ILLEGIBLE]
------------------------------ ------------------------------
Name: [ILLEGIBLE] Name: [ILLEGIBLE]
Title: Vice President Title: Assistant Vice President
Date: 10/6/2011 Date: 10/6/2011
HARTFORD LIFE INSURANCE COMPANY
By: /s/ Xxxx Xxxxxxx Attest: /s/ Xxxxxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxx Xxxxxxx, FSA, MAAA Name: Xxxxxxx Xxxxxx, FSA, MAAA
Title: Asst. Vice President and Title: Senior Vice President
Actuary Individual Life Individual Life Product
Product Management Management
Date: 10/24/2011 Date: 10/24/2011
Allocated Retention Pool -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 7 -- 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 UL Founders II 2001 CSO M/F S/NS Ultimate 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
Annually Renewable Term (ART) 2001 CSO M/F S/NS Ultimate ANB C 10/01/2008
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.
EFFECTIVE
RIDERS THAT PROVIDE ADDITIONAL BENEFITS BUT THAT ARE NOT ELIGIBLE FOR REINSURANCE DATE**
-------------------------------------------------------------------------------------------------------
Accidental Death Benefit (ADB) Rider 10/01/2008
Allocated Retention Pool -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 7 -- 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**
---------------------------------------------------------------------------
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
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 -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 7 -- 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 -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 7 -- 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 -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 7 -- 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 UL Joint Freedom 2001 CSO M/F S/NS Ultimate ALB B 10/01/2008
Hartford Bicentennial UL Joint Freedom 2001 CSO M/F S/NS Ultimate 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 -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 7 -- 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 -- Effective 10/01/2008
Between HLIC and Swiss Re
Amendment 7 -- Effective 10/03/2011
8
