Amendment #1
to the
AUTOMATIC AND FACULTATIVE
YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE December 15, 2003
Between
PRUCO LIFE INSURANCE COMPANY
(THE COMPANY)
And
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
(THE REINSURER)
The parties hereby agree to the following:
1. SCHEDULE A, Section 2, AUTOMATIC PORTION REINSURED, shall be replaced by the following:
US/Canadian Residents
For policy risk amounts where the M Life Insurance Company has capacity to retain a 10% share
of the mortality risk under the Modco Agreement described in the Preamble, THE REINSURER will
automatically reinsure under this Agreement an amount equal to 26.68% times 50% of the policy
risk amount. Once the M Life Insurance Company has reached its retention limit, THE REINSURER
will automatically reinsure under this Agreement an amount equal to 33.34% times 50% of the
policy risk amount. M Life Insurance Company's retention limit is $1 million per life. The
portion reinsured with THE REINSURER under this Agreement (26.68% or 33.34%) is known as the
YRT Percentage.
For policy risk amounts where the M Life Insurance Company has capacity, THE COMPANY will also
reinsure under one or more Other YRT Agreements with THIRD-PARTY REINSURERS amounts up to
53.32% times 50% of the policy risk amount. For policy risk amounts where the M Life Insurance
Company has exceeded its retention limit, THE COMPANY will reinsure under one or more Other YRT
Agreements with THIRD-PARTY REINSURERS amounts up to 66.66% times 50% of the policy risk
amount. The total policy risk amount to be reinsured through this Agreement and all Other YRT
Agreements will not exceed 50% of the First Layer of Coverage amounts shown in Schedule A,
Section 5.
Example 1 - (M Life has full capacity of $1 million available) - If the policy risk amount
is $10 million, the M Life Insurance Company will retain $1 million (i.e., 10% times $10
million) under the Modco Agreement and THE REINSURER will reinsure $1,334,000 (i.e., 26.68%
times 50% times $10 million) under this Agreement.
Example 2 - (M Life has capacity of $200,000 available) - If the policy risk amount is $10
million, the M Life Insurance Company will retain $200,000 (i.e., 10% of the first $2
million) under the Modco Agreement and THE REINSURER will reinsure $1,600,400 (i.e.,
26.68% times 50% of the first $2 million plus 33.34% times 50% of the policy risk amount in
excess of $2 million) under this Agreement.
Example 3 - (M Life has no capacity) - If the policy risk amount is $10 million, THE
REINSURER will reinsure $1,667,000 (i.e., 33.34% times 50% of the policy risk amount)
under this Agreement.
Non US/Canadian Residents
For policy risk amounts where the M Life Insurance Company has capacity to retain a 10% share
of the mortality risk under the Modco Agreement described in the Preamble, THE REINSURER will
automatically reinsure under this Agreement, an amount equal to 8.89% times 50% of the policy
risk amount. Once the M Life Insurance Company has reached its retention limit, THE REINSURER
will automatically reinsure under this Agreement an amount equal to 11.11% times 50% of the
policy risk amount. M Life Insurance Company's retention limit is $1 million per life. The
portion reinsured with THE REINSURER under this Agreement (8.89% or 11.11%) is known as the YRT
Percentage.
For policy risk amounts where the M Life Insurance Company has capacity, THE COMPANY will also
reinsure under one or more Other YRT Agreements with THIRD-PARTY REINSURERS amounts up to
71.11% times 50% of the policy risk amount. For policy risk amounts where the M Life Insurance
Company has exceeded its retention limit, THE COMPANY will reinsure under one or more Other YRT
Agreements with THIRD-PARTY REINSURERS amounts up to 68.89% times 50% of the policy risk
amount. The total policy risk amount to be reinsured through this Agreement and all Other YRT
Agreements will not exceed 50% of the First Layer of Coverage amounts shown in Schedule A,
Section 5.
2. SCHEDULE B, Section 6, NET AMOUNT AT RISK, shall be replaced by the following:
The policy net amount at risk is equal to the excess of the death benefit over the contract
fund. The portion of the net amount at risk reinsured under this Agreement is equal to the
product of the YRT Percentage times 50% of the policy net amount at risk.
Changes in the net amount at risk can result from increases, as well as decreases in the face
amount. These changes can also result from changes in the contract fund, i.e., changes due to
unit value fluctuations, the assessment of contract fees and charges, the crediting of interest
and the addition or withdrawal of funds. Changes in the net amount at risk can also result
from changes in the death benefit needed to meet the definition of life insurance once a policy
enters the "corridor."
Changes in the reinsured portion of the net amount at risk will depend on whether the retention
limit of M Life Insurance Company has been reached. These changes will operate as follows:
a. Increase in Policy Net Amount at Risk - (Assumes M Life Insurance Company has capacity to
retain its 10% share up to its retention limit) - An amount equal to the YRT
Percentage, as defined in Schedule A, times 50% of the new policy net amount at risk
will be reinsured under this Agreement. In addition, an amount equal to X% times 50%
of the new policy net amount at risk will be reinsured under one or more Other YRT
Agreements with THIRD-PARTY REINSURERS, where X is derived as follows:
1. For the portion of the policy whereby M Life Insurance Company can retain its 10% share up to
its retention limit, X% is equal to 80% minus the YRT Percentage.
2. For the portion of the policy whereby Life Insurance Company has exceeded its retention limit,
X% is equal to 100% minus the YRT Percentage.
Example 1 - The policy amount is $1 million, the contract fund is $400,000 and
the net amount at risk is $600,000. With respect to 50% of the policy risk
amount addressed by this Agreement, $60,000 is reinsured with M Life
Insurance Company under the Modco Agreement as described in the Preamble,
$80,040 i.e., ($600,000 x 26.68% x 50%) is reinsured under this Agreement, and
$159,960 i.e., ($600,000 x (80% - 26.68%) x 50%) is reinsured under one or
more Other YRT Agreements with THIRD-PARTY REINSURERS. With respect to the
remaining 50% of the policy risk amount, $60,000 is retained by THE COMPANY
and $240,000 is ceded to the THIRD-PARTY REINSURERS.
There is no other insurance retained by M Life Insurance Company on the same
insured. If the face amount is increased to $2 million, the net amount at
risk is increased to $1.6 million. In this instance, with respect to 50% of
the policy risk amount addressed by this Agreement, $160,000 is reinsured with
M Life Insurance Company under the Modco Agreement as described in the
Preamble, $213,440 i.e., ($1.6 million x 26.68% x 50%) is reinsured under this
Agreement, and $426,560 i.e., ($1.6 million x (80% - 26.68%) x 50%) is
reinsured under one or more Other YRT Agreements with THIRD-PARTY REINSURERS.
With respect to the remaining 50% of the policy risk amount, $160,000 is
retained by THE COMPANY and $640,000 is ceded to the THIRD-PARTY REINSURERS.
Example 2 - The policy amount is $35 million, the contract fund is $5 million
and the net amount at risk is $30 million. With respect to 50% of the policy
risk amount addressed by this Agreement, $1 million is reinsured with M Life
Insurance Company under the Modco Agreement as described in the Preamble,
$4,668,000 i.e., [($10 million x 26.68% x 50%) + ($20 million x 33.34% x
50%)] is reinsured under this Agreement, and $9,332,000 i.e., [($10 million x
(80% - 26.68%) x 50%) + ($20 million x (100% - 33.34%) x 50%)] is reinsured
under one or more Other YRT Agreements with THIRD-PARTY REINSURERS. With
respect to the remaining 50% of the policy risk amount, $3,000,000 is retained
by THE COMPANY and $12,000,000 is ceded to the THIRD-PARTY REINSURERS.
If the face amount is increased to $40 million, the net amount at risk is
increased to $35 million. In this instance, with respect to 50% of the policy
risk amount addressed by this Agreement, $1 million is reinsured with M Life
Insurance Company under the Modco Agreement as described in the
Preamble,$5,501,500 i.e., [($10 million x 26.68% x 50%) + ($25 million x
33.34% x 50%)] is reinsured under this Agreement, and $10,998,500 i.e.,
[($10 million x (80% - 26.68%) x 50%) + ($25 million x (100% - 33.34%) x 50%)]
is reinsured under one or more Other YRT Agreements with THIRD-PARTY
REINSURERS. With respect to the remaining 50% of the policy risk amount,
$3,500,000 is retained by THE COMPANY and $14,000,000 is ceded to the
THIRD-PARTY REINSURERS.
Example 3 - The policy amount is $10.5 million, the contract fund is
$500,000 and the net amount at risk is $10 million. With respect to 50% of
the policy risk amount addressed by this Agreement, $1 million is reinsured
with M Life Insurance Company under the Modco Agreement as described in the
Preamble, $1,334,000 i.e., ($10 million x 26.68% x 50%) is reinsured under
this Agreement, and $2,666,000 i.e., ($10 million x (80% - 26.68%) x 50%) is
reinsured under one or more Other YRT Agreements with THIRD-PARTY REINSURERS.
With respect to the remaining 50% of the policy risk amount, $1 million is
retained by THE COMPANY and $4 million is ceded to the THIRD-PARTY REINSURERS.
There is no other insurance retained by M Life Insurance Company on the same
insured. If the face amount is increased to $11 million, the net amount at
risk is increased to $10.5 million. In this instance, with respect to 50% of
the policy risk amount addressed by this Agreement, $1 million is reinsured
with M Life Insurance Company under the Modco Agreement as described in the
Preamble, $1,417,350 i.e., [($10 million x 26.68% x 50%) + ($500,000 x
33.34% x 50%)] is reinsured under this Agreement, and $2,832,650 i.e.,
[($10 million x (80% - 26.68%) x 50%) + ($500,000 x (100% - 33.34%) x 50%)]
is reinsured under one or more Other YRT Agreements with THIRD-PARTY
REINSURERS. With respect to the remaining 50% of the policy risk amount,
$1,050,000 is retained by THE COMPANY and $4,200,000 is ceded to the
THIRD-PARTY REINSURERS.
b. Decrease in Policy Net Amount at Risk - (Assumes M Life Insurance Company has capacity to
retain its 10% share up to its retention limit) - An amount equal to the YRT
Percentage, as defined in Schedule A, times 50% of the new policy net amount at risk
will be reinsured under this Agreement. In addition, an amount equal to X% times 50%
of the new policy net amount at risk will be reinsured under one or more Other YRT
Agreements with THIRD-PARTY REINSURERS, where X is derived as defined in Section 6a
above.
Example 4 - The policy amount is $2 million, the contract fund is $400,000 and
the net amount at risk is $1.6 million. With respect to 50% of the policy
risk amount addressed by this Agreement, $160,000 is reinsured with M Life
Insurance Company under the Modco Agreement as described in the Preamble,
$213,440 i.e., ($1.6 million x 26.68% x 50%) is reinsured under this
Agreement, and $426,560 i.e., ($1.6 million x (80% - 26.68%) x 50%) is
reinsured under one or more Other YRT Agreements with THIRD-PARTY REINSURERS.
With respect to the remaining 50% of the policy risk amount, $160,000 is
retained by THE COMPANY and $640,000 is ceded to the THIRD-PARTY REINSURERS.
If the face amount is decreased to $1 million, the net amount at risk is
decreased to $600,000. In this instance, with respect to 50% of the policy
risk amount addressed by this Agreement, $60,000 is reinsured with M Life
Insurance Company under the Modco Agreement, as described in the Preamble,
$80,040 i.e., ($600,000 x 26.68% x 50%) is reinsured under this Agreement,
and $159,960 i.e., ($600,000 x (80% - 26.68%) x 50%) is reinsured under one
or more Other YRT Agreements with THIRD-PARTY REINSURERS. With respect to the
remaining 50% of the policy risk amount, $60,000 is retained by THE COMPANY
and $240,000 is ceded to the THIRD-PARTY REINSURERS.
Example 5 - The policy amount is $40 million, the contract fund is $5 million
and the net amount at risk is $35 million. With respect to 50% of the policy
risk amount addressed by this Agreement, $1 million is reinsured with M Life
Insurance Company under the Modco Agreement as described in the Preamble,
$5,501,500 i.e., [($10 million x 26.68% x 50%) + ($25 million x 33.34% x 50%)]
is reinsured under this Agreement, and $10,998,500 i.e., [($10 million x (80%
- 26.68%) x 50%) + ($25 million x (100% - 33.34%) x 50%)] is reinsured under
one or more Other YRT Agreements with THIRD-PARTY REINSURERS. With respect to
the remaining 50% of the policy risk amount, $3,500,000 is retained by THE
COMPANY and $14,000,000 is ceded to the THIRD-PARTY REINSURERS.
If the face amount is decreased to $35 million, the net amount at risk is
decreased to $30 million. In this instance, with respect to 50% of the policy
risk amount addressed by this Agreement, $1 million is reinsured with M Life
Insurance Company under the Modco Agreement as described in the Preamble,
$4,668,000 i.e., [($10 million x 26.68% x 50%) + ($20 million x 33.34% x
50%)] is reinsured under this Agreement, and $9,332,000 i.e., [($10 million x
(80% - 26.68%) x 50%) + ($20 million x (100% - 33.34%) x 50%)] is reinsured
under one or more Other YRT Agreements with THIRD-PARTY REINSURERS. With
respect to the remaining 50% of the policy risk amount, $3,000,000 is retained
by THE COMPANY and $12,000,000 is ceded to the THIRD-PARTY REINSURERS.
Example 6 - The policy amount is $11 million, the contract fund is $500,000
and the net amount at risk is $10.5 million. With respect to 50% of the
policy risk amount, $1 million is reinsured with M Life Insurance Company
under the Modco Agreement as described in the Preamble, $1,417,350 i.e.,
[($10 million x 26.68% x 50%) + ($500,000 x 33.34% x 50%)] is reinsured
under this Agreement, and $2,832,650 i.e., [($10 million x (80% - 26.68%) x
50%) + ($500,000 x (100% - 33.34%) x 50%)] is reinsured under one or more
Other YRT Agreements with THIRD-PARTY REINSURERS. With respect to the
remaining 50% of the policy risk amount, $1,050,000 is retained by THE
COMPANY and $4,200,000 is ceded to the THIRD-PARTY REINSURERS.
If the face amount is decreased to $10.5 million, the net amount at risk is
decreased to $10 million. In this instance, with respect to 50% of the
policy risk amount, $1 million is reinsured with M Life Insurance Company
under the Modco Agreement as described in the Preamble, $1,334,000 i.e., ($10
million x 26.68% x 50%) is reinsured under this Agreement, and $2,666,000
i.e., ($10 million x (80% - 26.68%)x 50%) is reinsured under one or more Other
YRT Agreements with THIRD-PARTY REINSURERS. With respect to the remaining 50%
of the policy risk amount, $1 million is retained by THE COMPANY and $4
million is ceded to the THIRD-PARTY REINSURERS.
c. Termination of a non-MPVUL Policy which Results in Additional Capacity at M Life Insurance
Company - The portion of the policy net amount at risk reinsured under this Agreement
will be decreased by the amount of additional capacity at the M Life Insurance Company
made available by the termination of the non-MPVUL policy.
Example 7 - The policy amount is $2 million, the contract fund is $400,000 and
the net amount at risk is $1.6 million. With respect to 50% of the policy
risk amount, $0 is reinsured with M Life Insurance Company under the Modco
Agreement as described in the Preamble (because the M Life Insurance Company
retention limit was reached entirely as a result of a non-MPVUL policy),
$266,720 i.e., i.e., ($1.6 million x 33.34% x 50%) is reinsured under this
Agreement, and $533,280 i.e., ($1.6 million x (100% - 33.34%) x 50%) is
reinsured under one or more Other YRT Agreements with THIRD-PARTY REINSURERS.
With respect to the remaining 50% of the policy risk amount, $160,000 is
retained by THE COMPANY and $640,000 is ceded to the THIRD-PARTY REINSURERS.
If the non-MPVUL policy is terminated, thereby making available an additional
10% capacity at the M Life Insurance Company, then that capacity will be
utilized for the $2 million MPVUL policy. In that instance, the policy amount
is $2 million, the contract fund is $400,000 and the net amount at risk is
$1.6 million. With respect to 50% of the policy risk amount $160,000 is
reinsured with the M Life Insurance Company under the Modco Agreement as
described in the Preamble, $213,440 i.e., ($1.6 million x 26.68% x 50%) is
reinsured under this Agreement and $426,560 i.e., ($1.6 million x (80% -
26.68%) x 50%) is reinsured under one or more Other YRT Agreements with
THIRD-PARTY REINSURERS. With respect to the remaining 50% of the policy risk
amount, $160,000 is retained by THE COMPANY and $640,000 is ceded to the
THIRD-PARTY REINSURERS.
In witness of the above, THE COMPANY and THE REINSURER have by their respective officers executed and
delivered this Agreement in duplicate on the dates indicated below, with an effective date of
January 1, 2006.
------------------------------------------------------------ -------------------------------------------------------
PRUCO LIFE INSURANCE COMPANY TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
------------------------------------------------------------ -------------------------------------------------------
------------------------------------------------------------ -------------------------------------------------------
By:________________________________ By:______________________________
Title:_______________________________ Title:_____________________________
Date:_______________________________ Date:_____________________________
By:________________________________ By:______________________________
Title:_______________________________ Title:_____________________________
Date:_______________________________ Date:_____________________________
----------------------------------------------------------- --------------------------------------------------------
Amendment #2
to the
AUTOMATIC AND FACULTATIVE
YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE December 15, 2003
Between
PRUCO LIFE INSURANCE COMPANY
(THE COMPANY)
And
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
(THE REINSURER)
The parties hereby agree to the following:
3. SCHEDULE A, Section 2, AUTOMATIC PORTION REINSURED, shall be replaced by the following:
The portion reinsured with THE REINSURER under this Agreement is known as the YRT Percentage.
The YRT Percentage varies depending on the effective date of the policy as described in the
remainder of this section.
For Policies With Effective Dates Prior to January 19, 2005
For policy risk amounts where the M Life Insurance Company has capacity to retain a 10% share of
the mortality risk under the Modco Agreement described in the Preamble, THE REINSURER will
automatically reinsure under this Agreement an amount equal to 26.68% times 50% of the policy
risk amount. Once the M Life Insurance Company has reached its retention limit, THE REINSURER
will automatically reinsure under this Agreement an amount equal to 33.34% times 50% of the
policy risk amount. For policies effective prior to January 1, 2006, M Life Insurance Company's
retention limit is $400,000 per life. For policies effective prior to January 19, 2005, the YRT
Percentage refers to 26.68% or 33.34%.
For policy risk amounts where the M Life Insurance Company has capacity, THE COMPANY will also
reinsure under one or more Other YRT Agreements with THIRD-PARTY REINSURERS amounts up to 53.32%
times 50% of the policy risk amount. For policy risk amounts where the M Life Insurance Company
has exceeded its retention limit, THE COMPANY will reinsure under one or more Other YRT
Agreements with THIRD-PARTY REINSURERS amounts up to 66.66% times 50% of the policy risk amount.
The total policy risk amount to be reinsured through this Agreement and all Other YRT Agreements
will not exceed 50% of the First Layer of Coverage amounts shown in Schedule A, Section 5.
Example 1 - (M Life has full capacity of $400,000 available) - If the policy risk amount
is $4 million, the M Life Insurance Company will retain $400,000 (i.e., 10% times $4
million) under the Modco Agreement and THE REINSURER will reinsure 533,600 (i.e., 26.68%
times 50% times $4 million) under this Agreement.
Example 2 - (M Life has capacity of $200,000 available) - If the policy risk amount is $4
million, the M Life Insurance Company will retain $200,000 (i.e., 10% of the first $2
million) under the Modco Agreement and THE REINSURER will reinsure $600,200 (i.e., 26.68%
times 50% of the first $2 million plus 33.34% times 50% of the policy risk amount in excess
of $2 million) under this Agreement.
Example 3 - (M Life has no capacity) - If the policy risk amount is $4 million, THE
REINSURER will reinsure $666,800 (i.e., 33.34% times 50% of the policy risk amount) under
this Agreement.
For Policies With Effective Dates Between January 19, 2005 and September 27, 2006
US/Canadian Residents
For policy risk amounts where the M Life Insurance Company has capacity to retain a 10% share
of the mortality risk under the Modco Agreement described in the Preamble, THE REINSURER will
automatically reinsure under this Agreement an amount equal to 30.00% times 50% of the policy
risk amount. Once the M Life Insurance Company has reached its retention limit, THE REINSURER
will automatically reinsure under this Agreement an amount equal to 37.50% times 50% of the
policy risk amount. For policies effective prior to January 1, 2006, M Life Insurance
Company's retention limit is $400,000 per life. For policies effective January 1, 2006 or
later, M Life Insurance Company's retention limit is $1 million per life. For policies
effective on or after January 19, 2005 and prior to September 28, 2006, the YRT Percentage
refers to 30.00% or 37.50%.
For policy risk amounts where the M Life Insurance Company has capacity, THE COMPANY will also
reinsure under one or more Other YRT Agreements with THIRD-PARTY REINSURERS amounts up to
50.00% times 50% of the policy risk amount. For policy risk amounts where the M Life Insurance
Company has exceeded its retention limit, THE COMPANY will reinsure under one or more Other YRT
Agreements with THIRD-PARTY REINSURERS amounts up to 62.50% times 50% of the policy risk
amount. The total policy risk amount to be reinsured through this Agreement and all Other YRT
Agreements will not exceed 50% of the First Layer of Coverage amounts shown in Schedule A,
Section 5.
Example 4 - (M Life has full capacity of $1 million available) - If the policy risk amount
is $10 million, the M Life Insurance Company will retain $1 million (i.e., 10% times $10
million) under the Modco Agreement and THE REINSURER will reinsure $ 1,500,000 (i.e.,
30.00% times 50% times $10 million) under this Agreement.
Example 5 - (M Life has capacity of $200,000 available) - If the policy risk amount is $10
million, the M Life Insurance Company will retain $200,000 (i.e., 10% of the first $2
million) under the Modco Agreement and THE REINSURER will reinsure $1,800,000 (i.e.,
30.00% times 50% of the first $2 million plus 37.50% times 50% of the policy risk amount in
excess of $2 million) under this Agreement.
Example 6 - (M Life has no capacity) - If the policy risk amount is $10 million, THE
REINSURER will reinsure $ 1,875,000 (i.e., 37.50% times 50% of the policy risk amount)
under this Agreement.
Non US/Canadian Residents
THE REINSURER will automatically reinsure under this Agreement an amount equal to 20.00% times
50% of the policy risk amount regardless of M Life Insurance Company's capacity.
For Policies With Effective Dates of September 28, 2006 or Later
US/Canadian Residents
For policy risk amounts where the M Life Insurance Company has capacity to retain a 10% share
of the mortality risk under the Modco Agreement described in the Preamble, THE REINSURER will
automatically reinsure under this Agreement an amount equal to 34.30% times 50% of the policy
risk amount. Once the M Life Insurance Company has reached its retention limit, THE REINSURER
will automatically reinsure under this Agreement an amount equal to 42.86% times 50% of the
policy risk amount. For policies effective January 1, 2006 or later, M Life Insurance
Company's retention limit is $1 million per life. For policies effective on or after September
28, 2006, the YRT Percentage refers to 34.30% or 42.86%.
For policy risk amounts where the M Life Insurance Company has capacity, THE COMPANY will also
reinsure under one or more Other YRT Agreements with THIRD-PARTY REINSURERS amounts up to
45.70% times 50% of the policy risk amount. For policy risk amounts where the M Life Insurance
Company has exceeded its retention limit, THE COMPANY will reinsure under one or more Other YRT
Agreements with THIRD-PARTY REINSURERS amounts up to 57.14% times 50% of the policy risk
amount. The total policy risk amount to be reinsured through this Agreement and all Other YRT
Agreements will not exceed 50% of the First Layer of Coverage amounts shown in Schedule A,
Section 5.
Example 7 - (M Life has full capacity of $1 million available) - If the policy risk amount
is $10 million, the M Life Insurance Company will retain $1 million (i.e., 10% times $10
million) under the Modco Agreement and THE REINSURER will reinsure $ 1,715,000 (i.e.,
34.30% times 50% times $10 million) under this Agreement.
Example 8 - (M Life has capacity of $200,000 available) - If the policy risk amount is $10
million, the M Life Insurance Company will retain $200,000 (i.e., 10% of the first $2
million) under the Modco Agreement and THE REINSURER will reinsure $2,057,400 (i.e.,
34.30% times 50% of the first $2 million plus 42.86% times 50% of the policy risk amount in
excess of $2 million) under this Agreement.
Example 9 - (M Life has no capacity) - If the policy risk amount is $10 million, THE
REINSURER will reinsure $ 2,143,000 (i.e., 42.86% times 50% of the policy risk amount)
under this Agreement.
Non US/Canadian Residents
THE REINSURER will automatically reinsure under this Agreement an amount equal to 20.00% times
50% of the policy risk amount regardless of M Life Insurance Company's capacity.
4. SCHEDULE A, Section 5, AUTOMATIC ACCEPTANCE LIMIT, shall be replaced by the following:
For any policy to be reinsured under automatic reinsurance, the face amount will not exceed the
Automatic Issue Limits shown in the following tables:
US/Canadian Residents - No Foreign Travel - Non-Smoker
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Issue Age of Insured No Substandard Rating Class A - D Class E - H
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Ages: 18 - 65 $60,000,000 $55,000,000 $40,000,000
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66 - 70 $49,000,000 $44,000,000 $35,500,000
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71 - 75 $40,000,000 $40,000,000 $23,500,000
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76 - 77 $26,500,000 $23,500,000 $16,000,000
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78 - 80 $22,000,000 $19,000,000 $11,500,000
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81 - 85 $13,500,000 $11,500,000 None
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86 - 90 $5,350,000 $4,350,000 None
=========== =============== ========================= ============================= ============================
US/Canadian Residents - No Foreign Travel - Smoker
=========================== ========================= ============================= ============================
Issue Age of Insured No Substandard Rating Class A - D Class E - H
--------------------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
Ages: 18 - 65 $50,000,000 $50,000,000 $40,000,000
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66 - 70 $40,000,000 $40,000,000 $34,500,000
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71 - 75 $40,000,000 $40,000,000 $23,500,000
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76 - 77 $23,500,000 $23,500,000 $15,000,000
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78 - 80 $19,000,000 $19,000,000 $10,500,000
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81 - 85 $11,500,000 $10,500,000 None
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86 - 90 $4,350,000 $3,350,000 None
=========== =============== ========================= ============================= ============================
US/Canadian Residents - Foreign Travel
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Pref. Best - Class C Class D - E Class F - H
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Ages: 18 - 70 $ 6,666,000 $ 5,000,000 None
--------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
71 - 75 $ 5,000,000 $ 3,333,000 None
----------- --------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
00 - 00 Xxxx Xxxx Xxxx
=========== ========= ===================== ================= =====================
Non US/Canadian Residents
===================== ===================== ================= =====================
Pref. Best - Class C Class D - E Class F - H
--------------------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
Ages: 18 - 70 $ 20,000,000 $ 15,000,000 None
--------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
71 - 75 $ 15,000,000 $ 10,000,000 None
----------- --------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
00 - 00 Xxxx Xxxx Xxxx
=========== ========= ===================== ================= =====================
For any policy to be reinsured under automatic reinsurance, the amounts subject to reinsurance
are the First Layer of Coverage amounts shown in the following tables:
US/Canadian Residents - No Foreign Travel
=========================== ========================= =============================
Issue Age of Insured Pref. Best - Class D Class E - H
--------------------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
Ages: 18 - 65 $50,000,000 $35,000,000
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
66 - 70 $40,000,000 $25,000,000
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
71 - 75 $35,000,000 $15,000,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
76 - 77 $15,000,000 $10,000,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
78 - 80 $10,000,000 $ 5,000,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
81 - 85 $ 5,000,000 None
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
86 - 90 $ 1,500,000 None
=========== =============== ========================= =============================
US/Canadian Residents - Foreign Travel
===================== ===================== ================= =====================
Pref. Best - Class C Class D - E Class F - H
--------------------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
Ages: 18 - 70 $ 6,666,000 $ 5,000,000 None
--------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
71 - 75 $ 5,000,000 $ 3,333,000 None
----------- --------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
00 - 00 Xxxx Xxxx Xxxx
=========== ========= ===================== ================= =====================
Non US/Canadian Residents
===================== ===================== ================= =====================
Pref. Best - Class C Class D - E Class F - H
--------------------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
Ages: 18 - 70 $ 20,000,000 $ 15,000,000 None
--------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
71 - 75 $ 15,000,000 $ 10,000,000 None
----------- --------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
00 - 00 Xxxx Xxxx Xxxx
=========== ========= ===================== ================= =====================
For any policy to be reinsured under automatic reinsurance, the amounts reinsured with THE
REINSURER on that life under this Agreement will not exceed the amounts in the following tables:
For Policies With Effective Dates Prior to January 19, 2005
US/Canadian Residents - No Foreign Travel
=========================== ========================= =============================
Issue Age of Insured Pref. Best - Class D Class E - H
--------------------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
Ages: 18 - 65 $ 8,335,000 $ 5,834,500
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
66 - 70 $ 6,668,000 $ 4,167,500
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
71 - 75 $ 5,834,500 $ 2,500,500
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
76 - 77 $ 2,500,500 $ 1,667,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
78 - 80 $ 1,667,000 $ 833,500
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
81 - 85 $ 833,500 None
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
86 - 90 $ 250,050 None
=========== =============== ========================= =============================
US/Canadian Residents - Foreign Travel
===================== ===================== ================== ====================
Pref. Best - Class C Class D - E Class F - H
--------------------- --------------------- ------------------ --------------------
----------- --------- --------------------- ------------------ --------------------
Ages: 18 - 70 $1,111,222 $ 833,500 None
--------- --------------------- ------------------ --------------------
----------- --------- --------------------- ------------------ --------------------
71 - 75 $ 833,500 $ 555,611 None
----------- --------- --------------------- ------------------ --------------------
----------- --------- --------------------- ------------------ --------------------
00 - 00 Xxxx Xxxx Xxxx
=========== ========= ===================== ================== ====================
Non US/Canadian Residents
======================= =================== ================== ====================
Pref. Best - Class D - E Class F - H
Class C
----------------------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
Ages: 18 - 70 $1,112,000 $ 834,000 None
----------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
71 - 75 $ 834,000 $ 556,000 None
----------- ----------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
00 - 00 Xxxx Xxxx Xxxx
=========== =========== =================== ================== ====================
For Policies With Effective Dates Between January 19, 2005 and September 27, 2006
US/Canadian Residents - No Foreign Travel
=========================== ========================= =============================
Issue Age of Insured Pref. Best - Class D Class E - H
--------------------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
Ages: 18 - 65 $9,375,000 $6,562,500
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
66 - 70 $7,500,000 $4,687,500
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
71 - 75 $6,562,500 $2,812,500
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
76 - 77 $2,812,500 $1,875,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
78 - 80 $1,875,000 $937,500
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
81 - 85 $937,500 None
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
86 - 90 $281,250 None
=========== =============== ========================= =============================
US/Canadian Residents - Foreign Travel
===================== ===================== ================== ====================
Pref. Best - Class C Class D - E Class F - H
--------------------- --------------------- ------------------ --------------------
----------- --------- --------------------- ------------------ --------------------
Ages: 18 - 70 $666,600 $500,000 None
--------- --------------------- ------------------ --------------------
----------- --------- --------------------- ------------------ --------------------
71 - 75 $500,000 $333,300 None
----------- --------- --------------------- ------------------ --------------------
----------- --------- --------------------- ------------------ --------------------
00 - 00 Xxxx Xxxx Xxxx
=========== ========= ===================== ================== ====================
Non US/Canadian Residents
======================= =================== ================== ====================
Pref. Best - Class D - E Class F - H
Class C
----------------------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
Ages: 18 - 70 $2,000,000 $1,500,000 None
----------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
71 - 75 $1,500,000 $1,000,000 None
----------- ----------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
00 - 00 Xxxx Xxxx Xxxx
=========== =========== =================== ================== ====================
For Policies With Effective Dates of September 28, 2006 or Later
US/Canadian Residents - No Foreign Travel
=========================== ========================= =============================
Issue Age of Insured Pref. Best - Class D Class E - H
--------------------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
Ages: 18 - 65 $10,715,000 $7,500,500
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
66 - 70 $8,572,000 $5,357,500
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
71 - 75 $7,500,500 $3,214,500
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
76 - 77 $3,214,500 $2,143,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
78 - 80 $2,143,000 $1,071,500
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
81 - 85 $1,071,500 None
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
86 - 90 $321,450 None
=========== =============== ========================= =============================
US/Canadian Residents - Foreign Travel
===================== ===================== ================== ====================
Pref. Best - Class C Class D - E Class F - H
--------------------- --------------------- ------------------ --------------------
----------- --------- --------------------- ------------------ --------------------
Ages: 18 - 70 $666,600 $500,000 None
--------- --------------------- ------------------ --------------------
----------- --------- --------------------- ------------------ --------------------
71 - 75 $500,000 $333,300 None
----------- --------- --------------------- ------------------ --------------------
----------- --------- --------------------- ------------------ --------------------
00 - 00 Xxxx Xxxx Xxxx
=========== ========= ===================== ================== ====================
Non US/Canadian Residents
======================= =================== ================== ====================
Pref. Best - Class D - E Class F - H
Class C
----------------------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
Ages: 18 - 70 $2,000,000 $1,500,000 None
----------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
71 - 75 $1,500,000 $1,000,000 None
----------- ----------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
00 - 00 Xxxx Xxxx Xxxx
=========== =========== =================== ================== ====================
5. SCHEDULE B, Section 6, NET AMOUNT AT RISK, shall be replaced by the following:
The policy net amount at risk is equal to the excess of the death benefit over the contract
fund. The portion of the net amount at risk reinsured under this Agreement is equal to the
product of the YRT Percentage times 50% of the policy net amount at risk.
Changes in the net amount at risk can result from increases as well as decreases in the face
amount. These changes can also result from changes in the contract fund, i.e., changes due to
unit value fluctuations, the assessment of contract fees and charges, the crediting of interest
and the addition or withdrawal of funds. Changes in the net amount at risk can also result
from changes in the death benefit needed to meet the definition of life insurance once a policy
enters the "corridor."
Changes in the reinsured portion of the net amount at risk will depend on whether the retention
limit of M Life Insurance Company has been reached. These changes will operate as follows:
All examples in this section assume US/Canadian residents and policy effective dates on or
after September 28, 2006. For policies covering US/Canadian residents with policy effective
dates prior to September 28, 2006 and policies covering non US/Canadian residents, the
calculation would be the same except that the YRT Percentage and M Life Insurance Company's
retention limit may be different.
a. Increase in Policy Net Amount at Risk - (Assumes M Life Insurance Company has capacity to
retain its 10% share up to its retention limit) - An amount equal to the YRT
Percentage, as defined in Schedule A, times 50% of the new policy net amount at risk
will be reinsured under this Agreement. In addition, an amount equal to X% times 50%
of the new policy net amount at risk will be reinsured under one or more Other YRT
Agreements with THIRD-PARTY REINSURERS, where X is derived as follows:
1. For the portion of the policy whereby M Life Insurance Company can retain its 10% share up to
its retention limit, X% is equal to 80% minus the YRT Percentage.
2. For the portion of the policy whereby M Life Insurance Company has exceeded its retention
limit, X% is equal to 100% minus the YRT Percentage.
Example 1 - The policy amount is $1 million, the contract fund is $400,000 and
the net amount at risk is $600,000. With respect to 50% of the policy risk
amount addressed by this Agreement, $60,000 is reinsured with M Life
Insurance Company under the Modco Agreement as described in the Preamble,
$102,900 (i.e., $600,000 x 34.30% x 50%) is reinsured under this Agreement,
and $137,100 (i.e., $600,000 x (80% - 34.30%) x 50%) is reinsured under one or
more Other YRT Agreements with THIRD-PARTY REINSURERS. With respect to the
remaining 50% of the policy risk amount, $180,000 is retained by THE COMPANY
and $120,000 is ceded to the THIRD-PARTY REINSURERS under other reinsurance
agreements.
There is no other insurance retained by M Life Insurance Company on the same
insured. If the face amount is increased to $2 million, the net amount at
risk is increased to $1.6 million. In this instance, with respect to 50% of
the policy risk amount addressed by this Agreement, $160,000 is reinsured with
M Life Insurance Company under the Modco Agreement as described in the
Preamble, $274,400 (i.e., $1.6 million x 34.30% x 50%) is reinsured under this
Agreement, and $365,600 (i.e., $1.6 million x (80% - 34.30%) x 50%) is
reinsured under one or more Other YRT Agreements with THIRD-PARTY REINSURERS.
With respect to the remaining 50% of the policy risk amount, $480,000 is
retained by THE COMPANY and $320,000 is ceded to the THIRD-PARTY REINSURERS
under other reinsurance agreements.
Example 2 - The policy amount is $35 million, the contract fund is $5 million
and the net amount at risk is $30 million. With respect to 50% of the policy
risk amount addressed by this Agreement, $1 million is reinsured with M Life
Insurance Company under the Modco Agreement as described in the Preamble,
$6,001,000 [i.e., ($10 million x 34.30% x 50%) + ($20 million x 42.86% x
50%)] is reinsured under this Agreement, and $7,999,000 [i.e., ($10 million x
(80% - 34.30%) x 50%) + ($20 million x (100% - 42.86%) x 50%)] is reinsured
under one or more Other YRT Agreements with THIRD-PARTY REINSURERS. With
respect to the remaining 50% of the policy risk amount, $9,000,000 is retained
by THE COMPANY and $6,000,000 is ceded to the THIRD-PARTY REINSURERS under
other reinsurance agreements.
If the face amount is increased to $40 million, the net amount at risk is
increased to $35 million. In this instance, with respect to 50% of the policy
risk amount addressed by this Agreement, $1 million is reinsured with M Life
Insurance Company under the Modco Agreement as described in the Preamble,
$7,072,500 [i.e., ($10 million x 34.30% x 50%) + ($25 million x 42.86% x
50%)] is reinsured under this Agreement, and $9,427,500 [i.e., ($10 million x
(80% - 34.30%) x 50%) + ($25 million x (100% - 42.86%) x 50%)] is reinsured
under one or more Other YRT Agreements with THIRD-PARTY REINSURERS. With
respect to the remaining 50% of the policy risk amount, $10,500,000 is
retained by THE COMPANY and $7,000,000 is ceded to the THIRD-PARTY REINSURERS
under other reinsurance agreements.
Example 3 - The policy amount is $10.5 million, the contract fund is $500,000
and the net amount at risk is $10 million. With respect to 50% of the policy
risk amount addressed by this Agreement, $1 million is reinsured with M Life
Insurance Company under the Modco Agreement as described in the Preamble,
$1,715,000 (i.e., $10 million x 34.30% x 50%) is reinsured under this
Agreement, and $ 2,285,000 (i.e., $10 million x (80% - 34.30%) x 50%) is
reinsured under one or more Other YRT Agreements with THIRD-PARTY REINSURERS.
With respect to the remaining 50% of the policy risk amount, $3 million is
retained by THE COMPANY and $2 million is ceded to the THIRD-PARTY REINSURERS
under other reinsurance agreements.
There is no other insurance retained by M Life Insurance Company on the same
insured. If the face amount is increased to $11 million, the net amount at
risk is increased to $10.5 million. In this instance, with respect to 50% of
the policy risk amount addressed by this Agreement, $1 million is reinsured
with M Life Insurance Company under the Modco Agreement as described in the
Preamble, $1,822,150 [i.e., ($10 million x 34.30% x 50%) + ($500,000 x
42.86% x 50%)] is reinsured under this Agreement, and $2,427,850 [i.e.,
($10 million x (80% - 34.30%) x 50%) + ($500,000 x (100% - 42.86%) x 50%)]
is reinsured under one or more Other YRT Agreements with THIRD-PARTY
REINSURERS. With respect to the remaining 50% of the policy risk amount,
$3,150,000 is retained by THE COMPANY and $2,100,000 is ceded to the
THIRD-PARTY REINSURERS under other reinsurance agreements.
c. Decrease in Policy Net Amount at Risk - (Assumes M Life Insurance Company has capacity to
retain its 10% share up to its retention limit) - An amount equal to the YRT
Percentage, as defined in Schedule A, times 50% of the new policy net amount at risk
will be reinsured under this Agreement. In addition, an amount equal to X% times 50%
of the new policy net amount at risk will be reinsured under one or more Other YRT
Agreements with THIRD-PARTY REINSURERS, where X is derived as defined in Section 6a
above.
Example 4 - The policy amount is $2 million, the contract fund is $400,000 and
the net amount at risk is $1.6 million. With respect to 50% of the policy
risk amount addressed by this Agreement, $160,000 is reinsured with M Life
Insurance Company under the Modco Agreement as described in the Preamble,
$274,400 (i.e., $1.6 million x 34.30% x 50%) is reinsured under this
Agreement, and $365,600 (i.e., $1.6 million x (80% - 34.30%) x 50%) is
reinsured under one or more Other YRT Agreements with THIRD-PARTY REINSURERS.
With respect to the remaining 50% of the policy risk amount, $480,000 is
retained by THE COMPANY and $320,000 is ceded to the THIRD-PARTY REINSURERS
under other reinsurance agreements.
If the face amount is decreased to $1 million, the net amount at risk is
decreased to $600,000. In this instance, with respect to 50% of the policy
risk amount addressed by this Agreement, $60,000 is reinsured with M Life
Insurance Company under the Modco Agreement, as described in the Preamble,
$102,900 (i.e., $600,000 x 34.30% x 50%) is reinsured under this Agreement,
and $137,100 (i.e., $600,000 x (80% - 42.86%) x 50%) is reinsured under one
or more Other YRT Agreements with THIRD-PARTY REINSURERS. With respect to the
remaining 50% of the policy risk amount, $180,000 is retained by THE COMPANY
and $120,000 is ceded to the THIRD-PARTY REINSURERS under other reinsurance
agreements.
Example 5 - The policy amount is $40 million, the contract fund is $5 million
and the net amount at risk is $35 million. With respect to 50% of the policy
risk amount addressed by this Agreement, $1 million is reinsured with M Life
Insurance Company under the Modco Agreement as described in the Preamble,
$7,072,500 [i.e., ($10 million x 34.30% x 50%) + ($25 million x 42.86% x
50%)] is reinsured under this Agreement, and $9,427,500 [i.e., ($10 million x
(80% - 34.30%) x 50%) + ($25 million x (100% - 42.86%) x 50%)] is reinsured
under one or more Other YRT Agreements with THIRD-PARTY REINSURERS. With
respect to the remaining 50% of the policy risk amount, $10,500,000 is
retained by THE COMPANY and $7,000,000 is ceded to the THIRD-PARTY REINSURERS
under other reinsurance agreements.
If the face amount is decreased to $35 million, the net amount at risk is
decreased to $30 million. In this instance, with respect to 50% of the policy
risk amount addressed by this Agreement, $1 million is reinsured with M Life
Insurance Company under the Modco Agreement as described in the Preamble,
$6,001,000 [i.e., ($10 million x 34.30% x 50%) + ($20 million x 42.86% x
50%)] is reinsured under this Agreement, and $7,999,000 [i.e., ($10 million
x (80% - 34.30%) x 50%) + ($20 million x (100% - 42.86%) x 50%)] is reinsured
under one or more Other YRT Agreements with THIRD-PARTY REINSURERS. With
respect to the remaining 50% of the policy risk amount, $9,000,000 is retained
by THE COMPANY and $6,000,000 is ceded to the THIRD-PARTY REINSURERS under
other reinsurance agreements.
Example 6 - The policy amount is $11 million, the contract fund is $500,000
and the net amount at risk is $10.5 million. With respect to 50% of the
policy risk amount, $1 million is reinsured with M Life Insurance Company
under the Modco Agreement as described in the Preamble, $1,822,150 [i.e.,
($10 million x 34.30% x 50%) + ($500,000 x 42.86% x 50%)] is reinsured under
this Agreement, and $2,427,850 [i.e., ($10 million x (80% - 34.30%) x 50%) +
($500,000 x (100% - 42.86%) x 50%)] is reinsured under one or more Other
YRT Agreements with THIRD-PARTY REINSURERS. With respect to the remaining 50%
of the policy risk amount, $3,150,000 is retained by THE COMPANY and
$2,100,000 is ceded to the THIRD-PARTY REINSURERS under other reinsurance
agreements.
If the face amount is decreased to $10.5 million, the net amount at risk is
decreased to $10 million. In this instance, with respect to 50% of the
policy risk amount, $1 million is reinsured with M Life Insurance Company
under the Modco Agreement as described in the Preamble, $1,715,000 (i.e., $10
million x 34.30% x 50%) is reinsured under this Agreement, and $2,285,000
(i.e., $10 million x (80% - 34.30%)x 50%) is reinsured under one or more
Other YRT Agreements with THIRD-PARTY REINSURERS. With respect to the
remaining 50% of the policy risk amount, $3 million is retained by THE
COMPANY and $2 million is ceded to the THIRD-PARTY REINSURERS under other
reinsurance agreements.
d. Termination of a non-MPVUL Policy which Results in Additional Capacity at M Life Insurance
Company - The portion of the policy net amount at risk reinsured under this Agreement
will be decreased by the amount of additional capacity at the M Life Insurance Company
made available by the termination of the non-MPVUL policy.
Example 7 - The policy amount is $2 million, the contract fund is $400,000 and
the net amount at risk is $1.6 million. With respect to 50% of the policy
risk amount, $0 is reinsured with M Life Insurance Company under the Modco
Agreement as described in the Preamble (because the M Life Insurance Company
retention limit was reached entirely as a result of a non-MPVUL policy),
$342,880 (i.e., $1.6 million x 42.86% x 50%) is reinsured under this
Agreement, and $457,120 (i.e., $1.6 million x (100% - 42.86%) x 50%) is
reinsured under one or more Other YRT Agreements with THIRD-PARTY REINSURERS.
With respect to the remaining 50% of the policy risk amount, $480,000 is
retained by THE COMPANY and $320,000 is ceded to the THIRD-PARTY REINSURERS
under other reinsurance agreements.
If the non-MPVUL policy is terminated, thereby making available an additional
10% capacity at the M Life Insurance Company, then that capacity will be
utilized for the $2 million MPVUL policy. In that instance, with respect to
50% of the policy risk amount, $160,000 is reinsured with the M Life Insurance
Company under the Modco Agreement as described in the Preamble, $274,400
(i.e., $1.6 million x 34.30% x 50%) is reinsured under this Agreement and
$365,600 (i.e., $1.6 million x (80% - 34.30%) x 50%) is reinsured under one or
more Other YRT Agreements with THIRD-PARTY REINSURERS. With respect to the
remaining 50% of the policy risk amount, $480,000 is retained by THE COMPANY
and $320,000 is ceded to the THIRD-PARTY REINSURERS under other reinsurance
agreements.
In witness of the above, THE COMPANY and THE REINSURER have by their respective officers executed and
delivered this Agreement in duplicate on the dates indicated below, with an effective date of
January 19, 2005.
------------------------------------------------------------ -------------------------------------------------------
PRUCO LIFE INSURANCE COMPANY TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
By:________________________________ By:______________________________
Title:_______________________________ Title:_____________________________
Date:_______________________________ Date:_____________________________
By:________________________________ By:______________________________
Title:_______________________________ Title:_____________________________
Date:_______________________________ Date:_____________________________
----------------------------------------------------------- --------------------------------------------------------
Amendment #3
to the
AUTOMATIC AND FACULTATIVE
YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE December 15, 2003
Between
PRUCO LIFE INSURANCE COMPANY
(THE COMPANY)
And
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
(THE REINSURER)
The parties hereby agree to the following:
6. Section 7, AUTOMATIC REINSURANCE TERMS, shall be replaced by the following:
THE REINSURER agrees to automatically accept contractual risks on the life insurance policies shown
in Schedule A, subject to the following requirements:
a. CONVENTIONAL UNDERWRITING. Automatic reinsurance applies only to insurance applications
underwritten by THE COMPANY according to THE COMPANY's conventional underwriting and issue
rules and practices. Upon request, THE COMPANY shall provide THE REINSURER with a copy of its
current underwriting and issue rules and practices.
From time to time, it may be appropriate for THE COMPANY or THE REINSURER to request of the
other party changes in the underwriting rules and practices. The party requesting the change
must provide a 120-day advance written notice to the other party before the effective date of
such change. Recognition of reinsurance premium rates related to these changes must be
determined within the 120-day period. If the underwriting change or rate change is
unacceptable to either party, this Agreement may be unilaterally terminated for acceptance of
new business with a 90-day written termination notice to the other party.
b. RESIDENCE AND TRAVEL. To be eligible for automatic reinsurance, each insured must either be a
resident of the United States or Canada at the time of issue or be a resident of another
country that meets THE COMPANY's special underwriting requirements pertaining to foreign
residence.
Applications with Foreign Travel qualify for automatic reinsurance except when such travel is
to a country specifically not allowed under THE COMPANY's foreign travel requirements.
"Foreign Travel" is defined as no more than three months outside the United States or Canada.
c. OCCUPATION. To be eligible for automatic reinsurance, the insured must not be employed in an
occupation as shown in the Occupation Exclusion List in Schedule A.
d. AUTOMATIC ACCEPTANCE LIMIT. For any policy to be reinsured under automatic reinsurance, the
face amount shall not exceed the Automatic Acceptance Limit as shown in Schedule A.
e. JUMBO LIMIT. For any policy to be reinsured under automatic reinsurance, the total amount of
insurance in force and applied for in all companies shall not exceed the Jumbo Limit as shown
in Schedule A.
f. MINIMUM CESSION. The minimum amount of reinsurance per cession that THE REINSURER will
accept is shown in Schedule A.
g. FACULTATIVE QUOTES. The risk shall not have been submitted on a facultative basis to THE
REINSURER or any other reinsurer.
2. SCHEDULE A, Section 5, AUTOMATIC ACCEPTANCE LIMIT, shall be replaced by the following:
For any policy to be reinsured under automatic reinsurance, the face amount will not exceed the
Automatic Issue Limits shown in the following tables:
US/Canadian Residents - Non-Smoker
=========================== ========================= ============================= ============================
Issue Age of Insured No Substandard Rating Class A - D Class E - H
--------------------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
Ages: 18 - 65 $60,000,000 $55,000,000 $40,000,000
--------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
66 - 70 $49,000,000 $44,000,000 $35,500,000
--------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
71 - 75 $40,000,000 $40,000,000 $23,500,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
76 - 77 $26,500,000 $23,500,000 $16,000,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
78 - 80 $22,000,000 $19,000,000 $11,500,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
81 - 85 $13,500,000 $11,500,000 None
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
86 - 90 $5,350,000 $4,350,000 None
=========== =============== ========================= ============================= ============================
US/Canadian Residents - Smoker
=========================== ========================= ============================= ============================
Issue Age of Insured No Substandard Rating Class A - D Class E - H
--------------------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
Ages: 18 - 65 $50,000,000 $50,000,000 $40,000,000
--------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
66 - 70 $40,000,000 $40,000,000 $34,500,000
--------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
71 - 75 $40,000,000 $40,000,000 $23,500,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
76 - 77 $23,500,000 $23,500,000 $15,000,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
78 - 80 $19,000,000 $19,000,000 $10,500,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
81 - 85 $11,500,000 $10,500,000 None
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
86 - 90 $4,350,000 $3,350,000 None
=========== =============== ========================= ============================= ============================
Non US/Canadian Residents
===================== ===================== ================= =====================
Pref. Best - Class C Class D - E Class F - H
--------------------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
Ages: 18 - 70 $ 20,000,000 $ 15,000,000 None
--------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
71 - 75 $ 15,000,000 $ 10,000,000 None
----------- --------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
00 - 00 Xxxx Xxxx Xxxx
=========== ========= ===================== ================= =====================
For any policy to be reinsured under automatic reinsurance, the amounts subject to reinsurance are
the First Layer of Coverage amounts shown in the following tables:
US/Canadian Residents
=========================== ========================= =============================
Issue Age of Insured Pref. Best - Class D Class E - H
--------------------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
Ages: 18 - 65 $ 50,000,000 $ 35,000,000
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
66 - 70 $ 40,000,000 $ 25,000,000
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
71 - 75 $ 35,000,000 $ 15,000,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
76 - 77 $ 15,000,000 $ 10,000,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
78 - 80 $ 10,000,000 $ 5,000,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
81 - 85 $ 5,000,000 None
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
86 - 90 $ 1,500,000 None
=========== =============== ========================= =============================
Non US/Canadian Residents
===================== ===================== ================= =====================
Pref. Best - Class C Class D - E Class F - H
--------------------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
Ages: 18 -70 $ 20,000,000 $ 15,000,000 None
--------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
71-75 $ 15,000,000 $ 10,000,000 None
----------- --------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
00-00 Xxxx Xxxx Xxxx
=========== ========= ===================== ================= =====================
For any policy to be reinsured under automatic reinsurance, the amounts reinsured with THE
REINSURER on that life will not exceed the amounts in the following tables:
US/Canadian Residents
=========================== ========================= =============================
Issue Age of Insured Pref. Best - Class D Class E - H
--------------------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
Ages: 18 - 65 $10,715,000 $7,500,500
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
66 - 70 $8,572,000 $5,357,500
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
71 - 75 $7,500,500 $3,214,500
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
76 - 77 $3,214,500 $2,143,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
78 - 80 $2,143,000 $1,071,500
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
81 - 85 $1,071,500 None
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
86 - 90 $321,450 None
=========== =============== ========================= =============================
Non US/Canadian Residents
======================= =================== ================== ====================
Pref. Best - Class D - E Class F - H
Class C
----------------------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
Ages: 18 - 70 $2,000,000 $1,500,000 None
----------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
71 - 75 $1,500,000 $1,000,000 None
----------- ----------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
00 - 00 Xxxx Xxxx Xxxx
=========== =========== =================== ================== ====================
3. SCHEDULE A, Section 6, JUMBO LIMIT, shall be replaced by the following:
For any policy to be reinsured under automatic reinsurance, the total amount of insurance in force
and applied for in all companies will not exceed the amounts in the following tables:
US/Canadian Residents
===================== ====================== ================== ===================
No Substandard Rating Class A - D Class E - H
--------------------- ---------------------- ------------------ -------------------
----------- --------- ---------------------- ------------------ -------------------
Ages: 18-75 $65,000,000 $65,000,000 $65,000,000
----------- --------- ---------------------- ------------------ -------------------
----------- --------- ---------------------- ------------------ -------------------
81-85 $30,000,000 $30,000,000 $30,000,000
----------- --------- ---------------------- ------------------ -------------------
----------- --------- ---------------------- ------------------ -------------------
86-90 $10,000,000 $10,000,000 $10,000,000
=========== ========= ====================== ================== ===================
Note: When a policy is reinsured under automatic reinsurance and the total amount in force and
applied for in all companies, of which THE COMPANY is aware, exceeds $50,000,000, THE REINSURER
must be notified and THE COMPANY shall provide the amount being issued.
Non US/Canadian Residents
===================== ====================== ================== ===================
No Substandard Rating Class A - E Class F - H
--------------------- ---------------------- ------------------ -------------------
----------- --------- ---------------------- ------------------ -------------------
Ages: 18-75 $35,000,000 $35,000,000 $35,000,000
=========== ========= ====================== ================== ===================
4. SCHEDULE A, Section 8, FOREIGN TRAVEL EXCLUSIONS is deleted from this Agreement.
5. SCHEDULE A, Section 9, FOREIGN RESIDENCE EXCLUSIONS is deleted from this Agreement.
In witness of the above, THE COMPANY and THE REINSURER have by their respective officers executed and
delivered this Agreement in duplicate on the dates indicated below, with an effective date of
December 1, 2007.
------------------------------------------------------------ -------------------------------------------------------
PRUCO LIFE INSURANCE COMPANY TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
By:________________________________ By:______________________________
Title:_______________________________ Title:_____________________________
Date:_______________________________ Date:_____________________________
By:________________________________ By:______________________________
Title:_______________________________ Title:_____________________________
Date:_______________________________ Date:_____________________________
----------------------------------------------------------- --------------------------------------------------------
Amendment #4
to the
AUTOMATIC AND FACULTATIVE
YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE January 19, 2005
Between
PRUCO LIFE INSURANCE COMPANY
(THE COMPANY)
And
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
(THE REINSURER)
The parties hereby agree to the following:
1. Section 22, RECAPTURE, shall be replaced by the following:
RECAPTURE
At any time during the term of the Agreement, THE COMPANY may elect to recapture in full the coverage
reinsured under this Agreement for no additional recapture fee or settlement in the event of the
occurrence of any of the following.
a) Non-payment of reinsurance claims that are sixty (60) days past due from THE REINSURER provided
that (i) the claims are not in dispute; (ii) THE COMPANY is current on its reporting and premium
payments for policies reinsured under this Agreement; (iii) THE COMPANY has provided claim proofs
and relevant documentation requested by THE REINSURER; and (iv) THE COMPANY provides THE REINSURER
with 30- day prior written notice of its intent to recapture sent by certified mail to THE
REINSURER's General Counsel and the claim payment is not received within that 30- day period.
If THE REINSURER pays a claim solely to avoid recapture, THE REINSURER will maintain the right to
review and dispute the claim and obtain reimbursement of such payment if the parties agree or an
arbitration panel determines the claim is not covered by this Agreement. This right will have no
time limit. THE REINSURER and THE COMPANY agree to act in utmost good faith regarding such
matters.
b) Any action taken by THE REINSURER or any action failed to be taken by THE REINSURER that
results in THE COMPANY not being able to take the maximum credit for the reinsurance provided under
this Agreement on its statutory financial statements in its state of domicile provided that if the
parties do not agree that THE REINSURER's action or inaction is the cause of THE COMPANY's
inability to take credit for the reinsurance provided by this Agreement the issue shall be
submitted to arbitration in accordance with the provisions of Section 26 of this Agreement.
c) THE REINSURER no longer has an information security program that meets the requirements of the
Gramm Xxxxx Xxxxxx Act for the handling of Personal Information or THE REINSURER is unable to
prevent a recurrence of a Security Incident, as described in the subsection of the 'CONFIDENTIALITY
AND PRIVACY OF PERSONAL INFORMATION' provision entitled 'Confidentiality of Personal Information'.
d) THE REINSURER is deemed insolvent as described in Section 25.
e) A change in reinsurance premium rates that is unacceptable to THE COMPANY.
f) The assignment of THE REINSURER's rights and obligations under this Agreement to another
unaffiliated party without the consent of THE COMPANY, which shall not be withheld unreasonably.
In addition, at any time after the twentieth policy anniversary, THE COMPANY may elect to recapture all
or an appropriate portion of the coverage reinsured under this Agreement to reflect increases in the
maximum retention limits for THE COMPANY and all of its affiliates, collectively, subsequent to the date
of policy issue. These maximum retention limits as of the effective date of this Agreement are equal to
the amounts shown in the Risk Retention Limits table shown in Schedule A. The portion of the coverage
that may be recaptured must be directly related to the increase in the limits. To illustrate, if the
maximum retention limits are increased by 100%, then the portion that may be recaptured from all
reinsurers of the policies reinsured under this Agreement would be equal to 100% of the portion of each
reinsured policy that is retained by THE COMPANY. Furthermore, the portion that may be recaptured from
THE REINSURER would be determined as THE REINSURER's prorata share of the total portion reinsured with
all reinsurers.
If THE COMPANY elects to recapture the risks ceded to THE REINSURER under this Agreement as stated
above, it will do so by giving written notice to THE REINSURER's General Counsel. Upon the delivery of
such notice, all of the risks previously ceded under each of the policies subject to this Agreement
shall be recaptured, effective as of the date specified in THE COMPANY's notice. If THE COMPANY does
not specify in the written notice the date that such recapture is to be effective, then the recapture
shall be effective immediately upon THE REINSURER's receipt of the notice.
If a policy is recaptured, THE REINSURER will pay THE COMPANY the unearned reinsurance premium within
thirty (30) days following the date of recapture. THE REINSURER shall not be liable, under this
Agreement, for any claims incurred after the date of recapture, but shall remain liable for all claims
incurred on or prior to the date of recapture.
2. Section 29, CONFIDENTIALITY, shall be replaced by the following:
CONFIDENTIALITY AND PRIVACY OF PERSONAL INFORMATION
Confidentiality of Confidential Information
"Confidential Information" includes, but is not limited to any and all financial data, statistics,
programs, research, developments, information relating to either party's insurance and financial
products, planned or existing computer systems architecture and software, data, product pricing and
underwriting systems and processes and information of either party as well as third party confidential
information to which either party has access. Notwithstanding the foregoing, Confidential Information
does not include any information which (a) was rightfully known to or already in the possession of the
receiving party prior to disclosure, (b) becomes part of the public domain without breach of this
Agreement by the receiving party, (c) was independently developed by the receiving party or any of its
employees without references to or use of the disclosing party's Confidential Information, (d) a third
party rightfully disclosed to the receiving party without violating any obligations of confidence, or
(e) falls under the definition of Personal Information as described in the Confidentiality of Personal
Information section below.
(a). Protection of Confidential Information. The receiving party shall (i) not copy the Confidential
Information except as necessary for the purpose of internal administration of this Agreement (ii) not
publish, disseminate or otherwise disclose the Confidential Information to any third party, other than
its employees, agents or independent contractors with a need to know and who are bound by similar
confidentiality obligations (iii) not use the Confidential Information in any fashion except for
purposes of fulfilling the obligations under this Agreement and (iv) take steps consistent with its
protection of its own confidential and proprietary information (but in no event exercise less than
reasonable care) to prevent unauthorized disclosure of the Confidential Information.
(b). Disclosure of Confidential Information. Notwithstanding the requirements above, the receiving
party may disclose Confidential Information of the disclosing party as may be required by law (including
court order or subpoena or regulatory requirement), provided that the receiving party shall use best
efforts to (i) provide the disclosing party at least ten (10) days prior written notice before
disclosing such information, but in any event shall provide such notice to the disclosing party as soon
as reasonably practicable and (ii) cooperate with the efforts of the disclosing party to preserve the
confidentiality of the Confidential Information to the fullest extent permitted by law.
(c). Non-Disclosure of Agreement Terms. Neither party shall disclose the terms and conditions of this
Agreement without the prior written consent of the other party, except that each party may (1) make
such disclosures as are necessary to comply with applicable laws, rules and regulations or regulatory
requirements or as necessary to enforce this Agreement and (2) disclose the terms of this Agreement to
(A) such party's auditors, attorneys, bankers or investment bankers, as necessary for their rendition of
services to a party and (B) investors, potential investors and their accountants, retrocessionaires, tax
advisors, counsel, and bankers, provided any such third party is subject to an obligation of
confidentiality and non-use with respect to the terms of this Agreement.
(d). Mutual Cooperation. Each party shall notify promptly and cooperate with the other party in
enforcing the disclosing party's rights if such party becomes aware of a threatened or actual violation
of the confidentiality requirements set forth herein. Upon reasonable request by the disclosing party,
the receiving party shall provide copies of the confidentiality agreements entered into with its agents
or independent contractors.
(e). Injunctive Relief. Each party acknowledges that the disclosure or use of the other party's
Confidential Information in violation of this Agreement could cause or threaten irreparable harm to such
other party for which monetary damages may be difficult to ascertain or provide an inadequate remedy.
Each party therefore agrees that the other party, in addition to any other rights and remedies to which
such other party may be entitled under this Agreement or by law, shall be entitled to seek injunctive or
other equitable relief for any violation of this Article.
(f). Destruction of Confidential Information. Upon termination of this Agreement, all parties to this
Agreement shall destroy all Confidential Information, except for Confidential Information legally
required to be maintained or required to be maintained pursuant to its record retention requirements.
Upon written request, each party will provide all other parties a letter signed by an officer of such
party that certifies such party has either destroyed or is retaining applicable Confidential
Information, and, if retained, when such Confidential Information will be destroyed.
Confidentiality of Personal Information
"Personal Information," which means information provided by or at the direction of THE COMPANY, or to
which access was provided in the course of THE REINSURER's performance of its obligations under this
Agreements that (i) identifies an individual (by name, signature, address, telephone number or other
unique identifier), or (ii) that can be used to authenticate that individual (including, without
limitation, passwords or PINs, biometric data, unique identification numbers, answers to security
questions, or other personal identifiers). An individual's social security number, even in isolation,
is Personal Information. THE COMPANY's business contact information is not by itself Personal
Information.
(a). Protection of Personal Information - The REINSURER acknowledges that in the course of its
engagement by THE COMPANY, THE REINSURER may receive or have access to Personal Information. In
recognition of the foregoing, THE REINSURER covenants and agrees that:
i. It will keep and maintain all Personal Information in strict confidence, using such degree of
care as is appropriate to avoid unauthorized use or disclosure;
ii. It will use and disclose Personal Information solely for the purposes for which such
information, or access to it, is provided pursuant to the terms of this Agreement, and will not
use or disclose such information for THE REINSURER's own purposes or for the benefit of anyone
other than THE COMPANY;
iii. It will not, directly or indirectly, disclose Personal Information to anyone outside THE
COMPANY, except retrocessionaires, advisors or agents of THE REINSURER who have a need to know
such Personal Information in the ordinary course of THE REINSURER's performance of its
obligation under the Agreement or with THE COMPANY's prior written consent as permitted under
the terms of this Agreement; and
(b). Disposal of Personal Information - It shall, upon the earlier of (i) completion of an engagement or
termination of this Agreement, (ii) determination that it has no need for Personal Information, or (iii)
at any time THE COMPANY requests, dispose of all records, electronic or otherwise (including all backup
records and/or other copies thereof) regarding or including any Personal Information that THE REINSURER
may then possess or control except as may be required to be retained in accordance with THE REINSURER's
obligations under this Agreement or Document Retention Policy (Personal Information retained in
connection with this policy will continue to be subject to any duties of confidentiality imposed by this
Agreement or as otherwise required by law). Disposal may be achieved, at THE COMPANY's option, through
prompt delivery of the records to THE COMPANY or destruction pursuant to THE REINSURER's written policy
governing such destruction and in a manner that renders the records unreadable and undecipherable by any
means. Upon any occurrence of (a), (b), or (c) above, an authorized officer of THE REINSURER shall
promptly certify in writing to THE COMPANY, that all such Personal Information has been destroyed or
returned.
(c). Disclosure of Personal Information - THE REINSURER shall be permitted to disclose Personal
Information only to its employees and permitted subcontractors (individually an "Employee" and
collectively, "Employees"), retrocessionaires, advisors, or agents having a need to know such
information in connection with the performance of its obligations under this Agreement. THE REINSURER
shall instruct all Employees who have access to Personal Information as to their obligations under this
Agreement and any retrocessionaires, advisors or agents of THE REINSURER receiving Personal Information
shall be subject to a contractual obligation of confidentiality and non-use with respect to the terms of
this Agreement. THE REINSURER shall be responsible for all Employees' compliance with the terms of this
Agreement. Further, to facilitate performance of the services under this Agreement and to the extent
permitted by law, THE REINSURER may disclose such Personal Information 1) to auditors during the course
of external audits, 2) as required or permitted by an arbitration panel or actuary deciding a dispute
arising under this Agreement, 3) as required by applicable law, court order or by any legitimate
regulatory authority, or 4) to consult any tax advisor regarding the U. S. federal income tax treatment
or tax structure of this transaction. If THE REINSURER is required by law to disclose Personal
Information, THE REINSURER shall promptly notify THE COMPANY in writing in advance of such disclosure,
and reasonably cooperate with THE COMPANY's efforts to obtain an appropriate order related to the
disclosed materials.
(d). Injunctive Relief - THE REINSURER acknowledges that the unauthorized disclosure of Personal
Information may cause irreparable injury to THE COMPANY and damages, which may be difficult to
ascertain. Therefore, THE COMPANY shall, upon a disclosure or threatened disclosure of any Personal
Information, be entitled to equitable relief including injunction and specific performance as a remedy
for a threatened or actual unauthorized disclosure of Personal Information.
(e). Mutual Cooperation - THE REINSURER shall advise THE COMPANY of any known attempts to obtain
unauthorized access to Personal Information within twenty four (24) hours of learning of the attempts.
THE REINSURER shall notify THE COMPANY, promptly and without unreasonable delay, but in no event more
than twenty four (24) hours of learning that unauthorized access to, disclosure of, or breach in the
security of Personal Information (a "Security Incident") may have occurred. Thereafter, THE REINSURER
shall, at its own cost and expense:
i. Promptly furnish to THE COMPANY full details of the Security Incident;
ii. Assist and cooperate fully with THE COMPANY in THE COMPANY's investigation of THE REINSURER,
Employees or third parties related to the Security Incident, including but not limited to providing
THE COMPANY with reasonable physical access to the facilities and operations affected, facilitating
interviews with employees and others involved in the matter, and making available all relevant
records, logs, files, and data;
iii. Cooperate with THE COMPANY in any litigation or other formal action against third parties
deemed necessary by THE COMPANY to protect its rights; and
iv. Promptly use its best efforts to prevent a recurrence of any such Security Incident.
(f). Compliance by THE REINSURER - THE REINSURER certifies that its treatment of Personal Information is
in compliance with applicable laws and/or regulations with respect to privacy and data security and that
it has implemented and currently maintains an information security program that includes administrative,
technical, and physical safeguards to (i) ensure the security and confidentiality of Personal
Information, (ii) to protect against any anticipated threats or hazards to the security or integrity of
such Personal Information and (iii) to protect against unauthorized access to, destruction,
modification, disclosure or use of Personal Information which could result in substantial harm or
inconvenience to THE COMPANY, or to any person who may be identified by such Personal Information. THE
COMPANY may request that THE REINSURER certify in writing its material compliance with this Section (f)
from time to time, but no more frequently than semiannually or as the parties mutually agree.
If THE REINSURER no longer has an information security program that meets the requirements of the Gramm
Xxxxx Xxxxxx Act for the handling of Personal Information or THE REINSURER is unable to prevent a
recurrence of a Security Incident as described above, THE COMPANY reserves the right to terminate this
agreement for new business and/or recapture all inforce business immediately upon written notice to THE
REINSURER.
In witness of the above, THE COMPANY and THE REINSURER have by their respective officers executed and
delivered this Agreement in duplicate on the dates indicated below, with an effective date of October 1,
2007.
PRUCO LIFE INSURANCE COMPANY TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
By:____________________________________ By:____________________________________
Title:___________________________________ Title:___________________________________
Date:___________________________________ Date:___________________________________
By:____________________________________ By:____________________________________
Title:___________________________________ Title:___________________________________
Date:___________________________________ Date:___________________________________
