REINSURANCE AGREEMENT
referred to as the "Agreement"
BETWEEN THE
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
OF
WORCESTER, MASSACHUSETTS
#5785-1
referred to in this Agreement as the "Company"
AND THE
LIFE REASSURANCE CORPORATION OF AMERICA
OF
STAMFORD, CONNECTICUT
referred to in this Agreement as "Life Re"
TABLE OF CONTENTS
ARTICLE I - AUTOMATIC REINSURANCE 1
1. Insurance 1
2. Coverages 2
3. Jumbo Risk 2
4. Regular Limits of Retention 3
ARTICLE II - FACULTATIVE REINSURANCE 3
ARTICLE III - LIABILITY 3
1. Automatic Reinsurance Liability 3
2. Facultative Reinsurance Liability 4
ARTICLE IV - AMOUNT OF INSURANCE 4
1. Amounts 4
2. Minimum Amounts 5
ARTICLE V - PROCEDURES TO EFFECT BULK REINSURANCE 5
1. General Information 5
2. Automatic Reinsurance 5
3. Facultative Reinsurance 6
4. Annual Reports 6
ARTICLE VI - PREMIUMS 7
1. Life Insurance 7
2. Preliminary Term Insurance 8
3. Premium Taxes 8
4. Payments 8
5. Nonpayment of Reinsurance Premiums 8
6. Misstatements 9
ARTICLE VII - CLAIMS 9
1. Notice 9
2. Authorization for Payment 9
3. Payment 10
4. Expenses 10
5. Misstatements 11
6. Contested Claims 11
7. Unusual Expenses 14
8. Assistance and Advice 15
AUTOMATIC NON REFUND BULK
UNIVERSAL LIFE
Table of Contents cont. . . .
LIFEARTICLE VIII - RECAPTURE 15
1. Recapture 15
2. Method of Recapture 15
ARTICLE IX - REDUCTIONS, REINSTATEMENTS AND CHARGES 16
1. Reductions and Terminations 16
2. Reinstatements 17
3. Nonforfeiture Benefits 17
4. Policy Loans 18
5. Contractual Conversions and Exchanges 18
6. Non Contractual Exchanges 18
ARTICLE X - INSOLVENCY 19
ARTICLE XI - ARBITRATION 20
ARTICLE XII - GENERAL PROVISIONS 21
1. Policy Forms and Rates 21
2. Reinsurance Conditions 22
3. Expenses 22
4. Errors and Omissions 22
5. Offset 22
6. Inspection 23
ARTICLE XIII - DURATION OF AGREEMENT 23
ARTICLE XIV - EXECUTION 24
Schedule A - Retention and Reinsurance Limits
Schedule B - Bulk Reporting Forms
Schedule C - Premiums and Discounts
AUTOMATIC NON REFUND BULK
UNIVERSAL LIFE
The Company and Life Re mutually agree to reinsure on the terms and
conditions set out below. This Agreement is solely between the Company and Life
Re, and performance of the obligations of each party under this Agreement shall
be rendered solely to the other party. In no instance shall anyone other than
the Company or Life Re have any rights under this Agreement.
ARTICLE I
AUTOMATIC REINSURANCE
1. INSURANCE
The Company will cede and Life Re will accept reinsurance
under policies written by the Company on citizens of the United States
or Canada domiciled in the United States or Canada at the time of
policy issue, whose surnames begin with the letters shown in Schedule
A. When the Company retains its maximum limit of retention, as shown in
Part I of Schedule A, the Company will cede and Life Re will accept
automatically reinsurance in amounts not exceeding the amounts per life
in Part II of Schedule A of this Agreement. Where the Company has more
than one agreement with Life Re, the total amount per life
automatically ceded to Life Re, under all Agreements combined, shall
not exceed the automatic binding limits available to the Company under
the Agreement with the highest binding authority. Life Re shall accept
automatic reinsurance when (a) the Company already has for its own
account its maximum limit of retention on the life and for this reason
alone is not retaining any portion of the insurance applied for on a
current application, and (b) in the Company's opinion there has been no
adverse change in the insurance status of the risk
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since the Company's last acceptance for its own retention. A risk as
defined in the following categories is not eligible for reinsurance
under this paragraph:
a) A jumbo risk as defined in paragraph 3 below.
b) A risk which has been sent to Life Re or any other
reinsurer for facultative underwriting consideration.
2. COVERAGES
Life insurance is exclusively the coverage or risks reinsured
automatically under paragraph 1, to the extent that limits per life are
specified in Schedule A attached. The life insurance includes both
basic policies and term riders providing life insurance protection.
Life insurance resulting from a group conversion, where full evidence
of insurability has not been secured, will not be included under this
Treaty.
3. JUMBO RISK
A jumbo risk is one where the papers of the Company, including
all papers that are part of the current application, indicate that the
person to be insured has or will have total insurance in force in all
companies greater than:
LIFE
----
All Ages $10,000,000
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4. REGULAR LIMITS OF RETENTION
The Company may modify its regular limits of retention,
detailed in Schedule A, by giving thirty (30) days' written notice to
Life Re. The amount of reinsurance to be ceded and accepted
automatically after the new limits take effect will be determined by
mutual Agreement.
ARTICLE II
FACULTATIVE REINSURANCE
When reinsurance is not available as Automatic Reinsurance
under Article I, the Company may submit, for consideration by Life Re,
a request for any amount of reinsurance of the coverages in Article
I.2. that the Company may require. Even though reinsurance is available
as Automatic Reinsurance under Article I, the Company may choose to
submit, for consideration by Life Re, a request for any amount of
reinsurance of the coverages in Article I.2. that the Company may
require.
ARTICLE III
LIABILITY
1. AUTOMATIC REINSURANCE LIABILITY
The liability of Life Re on any automatic reinsurance under
this Agreement begins and ends at the same time as that of the Company
provided that such an automatic application shall not have been
submitted to any other reinsurer for facultative underwriting
consideration.
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2. FACULTATIVE REINSURANCE LIABILITY
The liability of Life Re on any facultative reinsurance under
this Agreement begins and ends at the same time as that of the Company,
provided that:
a) Life Re has given the Company an unconditional
approval on the application for reinsurance, and
b) the Company has notified Life Re of its acceptance of
such offer.
ARTICLE IV
AMOUNT OF INSURANCE
1. AMOUNTS
Life insurance under this Agreement shall be on a Yearly
Renewable Term plan for the amount at risk under the policy reinsured.
In the year of issue the amount at risk is defined as the
amount of insurance reinsured. In all subsequent policy years, the
amount at risk is defined as the amount of insurance reinsured less 25%
of the accumulated policy value on the entire policy at the end of the
prior year for automatic reinsurance, less one-third of the accumulated
policy value at the end of the prior year for special automatic
reinsurance, and less all accumulated policy values for facultative
reinsurance and any exchanges.
Increases in the death benefit that are underwritten in
accordance with State Mutual's usual underwriting standards for
individually selected risks for new issue will be considered as new
insurance for the purpose of determining the reinsurance amount at
risk.
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2. MINIMUM AMOUNTS
Amounts of reinsurance less than $50,001 will not be ceded
under this Agreement. The minimum in-force net amount at risk if
$25,001. Amounts less than $25,001 will be recaptured.
ARTICLE V
PROCEDURES TO EFFECT BULK REINSURANCE
1. GENERAL INFORMATION
Life Re will accept, on a bulk basis, reinsurance in amounts
per life, up to those shown in Schedule A.
2. AUTOMATIC REINSURANCE
Within ten (10) days following the closed of the calendar
month, the Company will forward to Life Re a statement of premiums due,
reserves, and policy data as shown in Part I of Schedule B. The
statements will show the premium due on new reinsurance effected in the
preceding month and on existing reinsurance with anniversaries in the
preceding month and the pro-rata adjustments for changes in
reinsurance. The Company will remit a check for the balance indicated
to Life Re along with the statement of reinsurance. If a balance is due
the Company, it will be remitted by Life Re promptly.
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3. FACULTATIVE REINSURANCE
When a company requests facultative reinsurance, the
application will be made by submitting to Life Re Form 2068, Bulk
Preliminary Notification, shown in Part II of Schedule B (or a mutually
agreeable form). It will send to Life Re any and all information it has
about the risk, including specifically, but not limited to, copies of
the application, medical examiners' reports, attending physicians'
statements, inspection reports, and other reports and other papers
bearing on the insurability of the risk. Upon receipt of the
application, Life Re will analyze the risk promptly and as soon as
possible notify the Company of its decision and its classification of
the risk. After the Company's policy has been paid for and delivered,
the Company will activate the Facultative cession on the Company's
reinsurance system, within 120 days of Life Re's decision to accept the
case. When the preceding facultative procedures have been satisfied
Article V, paragraphs 2 and 4, apply to Facultative as well as
Automatic Reinsurance. A facultative indicator must be present on the
monthly reinsurance transaction and inforce reports.
4. ANNUAL REPORTS
Within thirty days of the end of each calendar year, the
Company will forward to Life Re a seriatim listing of reinsured
cessions to support the reserve and inforce portions of the bulk
report.
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ARTICLE VI
PREMIUMS
1. LIFE INSURANCE
Premiums per $1,000 for life insurance rated standard and
substandard are given in Part I of Schedule C. The premiums per $1,000
are applied to the amount of life reinsurance as outlined in Article
IV.1. Substandard premiums are to be calculated utilizing the rates
shown in Part I of Schedule C increased by 25% for each table rating. A
policy fee, when applicable, is charged in each year in addition to the
premium based on the amount of life insurance. Life Re anticipates that
these premiums will be continued indefinitely for all business ceded
under this Agreement. For the purpose of satisfying requirements for
deficiency reserves imposed by various state insurance departments,
Life Re will guaranty for renewal the greater of the premiums provided
in this Agreement or premiums based on the 1980 CSO Table at 2.5%
interest. When the Company charges a flat extra premium, whether alone
or in addition to a premium based on a multiple table, the Company will
pay this premium less the discounts detailed in Part II of Schedule C,
on the reinsurance amount in addition to the standard or multiple table
premium for the rating and plan of reinsurance. Life Re will not
contribute to dividends paid by the Company unless noted in Part II of
Schedule C. If Life Re contributes to dividends, it will not
participate in an increase in the dividend scale unless agreed to in
writing prior to the effective date of the improved dividend scale.
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2. PRELIMINARY TERM INSURANCE
If the Company issues a policy with preliminary term
insurance, the reinsurance premium for the preliminary term period will
be paid to Life Re at the same rate the Company charges for the
policies on which reinsurance in Life Re is based less commissions at
the percentage paid by the Company.
This rule applies to all benefits under the preliminary term
insurance. For the First policy year after the preliminary term period,
the premiums and discounts for all benefits will be computed at first
year rates.
3. PREMIUM TAXES
Life Re will not reimburse the Company for state premium taxes
on reinsurance premiums received from the Company.
4. PAYMENTS
Premiums are payable annually in advance. If reinsurance is
reduced, terminated, increased or reinstated during the year, pro-rata
adjustment will be made by Life Re and the Company on all premium items
except policy fees.
5. NONPAYMENT OF REINSURANCE PREMIUMS
Except as provided in Article XII.4., the payment of
reinsurance premiums shall be a condition precedent to the liability of
Life Re under reinsurance covered by this Agreement. In the event of
nonpayment of reinsurance premiums as provided in this Article, Life Re
shall have the right to terminate the reinsurance under all policies
having reinsurance premiums in arrears.
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6. MISSTATEMENTS
If the insured's age or sex was misstated and the amount of
insurance on the Company's policies is adjusted, the Company and Life
Re will share the adjustment in proportion to the amount of liability
of each at the time of issue of the policies. Premiums will be
recalculated for the correct age or sex and amounts according to the
proportion as above and adjusted without interest. If the insured is
still alive, the method above will be used for past years and the
amount of reinsurance and premium adjusted for the future to the amount
that would have been correct at issue.
ARTICLE VII
CLAIMS
1. NOTICE
The Company shall notify Life Re promptly after receipt of any
information on a claim where reinsurance is involved, and it shall
furnish to Life Re as soon as possible the completed reinsurance claim
form and copies of all claim papers and proofs.
2. AUTHORIZATION FOR PAYMENT
a) AUTOMATIC REINSURANCE
Life Re shall follow the decision of the Company on
payment of a claim arising from a policy ceded to
Life Re on an automatic basis.
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b) FACULTATIVE REINSURANCE
With respect to any claim arising from a policy ceded
to Life Re on a facultative basis where the Company
has retained less than 50% of the insurance and the
claim is within the contestable period of the policy,
he Company shall confer with Life Re before
settlement. In other cases, Life Re shall follow the
decision of the Company on payment of the claim.
3. PAYMENT
For life and additional indemnity claims, Life Re shall pay
its share in a lump sum to the Company, without regard to the form of
claim settlement of the Company.
a) BULK REPORTED BUSINESS
Claims payments shall be the actual reinsured net
amount at risk.
4. EXPENSES
Life Re shall share in the claim expense of any contest or
compromise of a claim in the same proportion that he net amount at risk
reinsured hereunder bears to the total net risk of the Company on all
policies being contested by the Company, and it shall share in the
total amount of any reduction in liability in the same proportion.
Claim expense shall include, but not be limited to, cost of
investigation, legal fees, court costs, and interest charges.
Compensation of salaried officers and employees and any possible
extra-contractual damages shall be not considered covered expenses.
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5. MISSTATEMENTS
In the event of an increase or reduction in the amount of the
Company's insurance on any policy reinsured hereunder because of an
overstatement or understatement of age or misstatement of sex,
established after the death of the insured, the Company and Life Re
shall share in such increase or reduction in proportion to their
respective net amounts at risk under that policy.
6. CONTESTED CLAIMS
(a) The Company shall give Life Re prompt notice of any
claim submitted on a policy reinsured hereunder and
prompt notice of the instigation of any legal
proceedings in connection therewith. Copies of proofs
or other documents bearing on such claim or
proceeding shall be furnished to Life Re when
requested.
(b) With respect to the administration, negotiation,
payment, denial or settlement of any claim or legal
proceeding, the Company shall act with good faith and
in accord with its standard practices applicable to
all claims, whether reinsured or not. Life Re shall
pay, at its Home Office, its share of net reinsurance
liability upon receiving proper evidence of the
Company's having settled with the claimant. Payment
of net reinsurance liability on account of death or
dismemberment shall; be made in one lump sum. Net
reinsurance liability is the reinsurance amount at
risk (the death benefit reinsured less the cash value
under the policy) plus any unusual expenses covered
under the settlement of claims provisions.
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(c) If the Company should contest or compromise any claim
or proceeding and the amount of net liability thereby
be reduced, or if at any time the Company should
recover monies from any third party in connection
with or arising out of any claim reinsured by Life
Re, Life Re's reinsurance liability shall be reduced
or Life Re shall share in the recovery, as the case
may be, in the proportion that the net liability of
Life Re bore to the total net liability existing as
of the occurrence of the claim. As used in this
section, "recovery" shall include, but not be limited
to, settlements, judgments, awards and insurance
payments of any kind.
(d) Any unusual expenses incurred by the Company in
defending or investigating a claim for policy
liability or in taking up or rescinding a policy
reinsured hereunder shall be participated in by Life
Re in the same proportion as described in section (c)
above.
(e) In no event shall the following categories of
expenses or liabilities be considered, for purposes
of this Agreement, as "unusual expenses" or items of
"net reinsurance liability:"
1. routine investigative or administrative
expenses;
2. expenses incurred in connection with a
dispute or contest arising out of
conflicting claims of entitlement to policy
proceeds or benefits which the Company
admits are payable;
3. expenses, fees, settlements, or judgments
arising out of or in connection with claims
against the Company for punitive or
exemplary damages.
(f) Life Re shall be liable for any and all compensatory
charges in the proportion net reinsurance liability
bears to the total net amount at risk.
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(g) In the event that the amount of insurance provided by
a policy or policies reinsured hereunder is increased
or reduced because of a misstatement of age or sex
established after the death of the insured, the net
reinsurance liability of Life Re shall increase or
reduce in the proportion that the net reinsurance
liability of Life Re bore to the sum of the net
retained liability of the Company and the net
liability of other reinsurers immediately prior to
the discovery of such misstatement of age or sex.
Reinsurance policies in force with Life Re shall be
reformed on the basis of the adjusted amounts, using
premiums and reserves applicable to the correct age
and sex. Any adjustment in reinsurance premiums shall
be made without interest. Life Re shall refund to the
Company any reinsurance premiums, without interest,
unearned as of the date of death of the life
reinsured hereunder.
(h) If the Company pays interest from a specified date,
such as the date of death of the insured, on the
contractual benefit of a policy reinsured under this
Agreement, Life Re shall indemnify the Company for
Life Re's share of such interest. Interest paid by
Life Re under this section shall be computed at the
same rate and commencing as of the same date as that
paid by the Company. The computation of interest paid
by Life Re under this section shall cease as of the
earlier of (1) the date of payment of Life Re's share
of reinsurance liability and (2) the date of
termination of the period for which the reinsured has
paid such interest.
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7. UNUSUAL EXPENSES
Notwithstanding anything in this Agreement to the contrary,
the term "unusual expenses" as used in this Agreement shall include,
but not be limited to:
(a) any extra contractual award (including, but not
limited to, punitive or exemplary damages) imposed
against the Company by a court or regulatory body,
except to the extent that the award is based on
conduct of the Company which Life Re did not have
knowledge of nor acquiesced in and which was in bad
faith. For purposes of this provision, in determining
whether the Company's conduct was in bad faith, the
decision of the court or regulatory body will not be
binding. Rather, the conduct will only be considered
to have been in bad faith to the extent it deviates
from accepted standards of conduct among those
familiar with the operation of the insurance and
reinsurance business; and
(b) any legal fees and costs incurred by the Company in
defending or investigating a claim for policy
liability or in taking up or rescinding a policy
reinsured under this Agreement.
For purposes of this Agreement, any penalties, attorney's
fees, and interest imposed automatically by statute against the Company
and arising solely out of judgment being rendered against the Company
in a suit for policy benefits reinsured under this Agreement shall, in
any event, be considered "unusual expenses".
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8. ASSISTANCE AND ADVICE
At the request of the Company, Life Re shall advise on any
claim concerning business reinsured hereunder and, when such a claim
appears to be of doubtful validity, it shall assist the Company in its
determination of liability and in the best procedure to follow with
respect to the claim.
ARTICLE VIII
RECAPTURE
1. RECAPTURE
If the Company increases its limits of retention, it may make
a corresponding reduction in the reinsurance in force under this
Agreement on all persons where the Company has maintained its maximum
limit of retention as detailed in Schedule A. No reinsurance, however,
shall be recaptured under this provision before the end of the tenth
policy hear, and no reinsurance may be recaptured where the Company
retained less than its maximum retention in effect at the time the
policy was issued.
2. METHOD OF RECAPTURE
If the Company elects to recapture, it will notify Life Re in
writing within ninety (90) days from the effective date of its increase
in retention. At the next anniversary (or the tenth
15
anniversary, if later) of the Company's policy, the reinsurance will be
reduced to increase the total retained by the Company to its new
maximum. If the reinsurance on any policy for any person is reduced
under this provision, all must be reduced. If two or more reinsurers
have reinsurance on the same person, Life Re's share of the reduction
will be in proportion to its share of the total reinsurance on the
person.
ARTICLE IX
REDUCTIONS, REINSTATEMENTS AND CHANGES
1. REDUCTIONS AND TERMINATIONS
Reinsurance amounts are calculated in terms of coverages on
the life of a person. If any of the Company's policies or riders on the
person are reduced or terminated, the reinsurance in force will be
reduced by the corresponding amount. The reduction will not be applied
to force the Company to reassume more than its regular retention limit
at the time of the reduction for the age at issue, mortality rating and
form of the policy or policies for which reinsurance is being
terminated. The reduction first shall be applied to reinsurance, if
any, on the particular policy reduced. If the reduction exceeds the
amount of reinsurance on that policy, the reduction shall then be
applied to reinsurance on other policies on that life in the order in
which the policies were effected, the first effected shall be the first
terminated or reduced. If reinsurance has been ceded to more than one
reinsurer, the reduction in Life Re's insurance will be in proportion
to the reduction in the total. After the proportion has been
determined, the rules above will be used.
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2. REINSTATEMENTS
a) AUTOMATIC REINSURANCE
A policy of the Company, ceded to Life Re on an
automatic basis, that was reduced, terminated, or
lapsed, if reinstated by the Company under its
regular rules, will be reinstated automatically to
the amount that would be in force had the policy not
been reduced, terminated or lapsed.
b) FACULTATIVE REINSURANCE
A policy of the Company that was reduced, terminated,
or lapsed, if ceded to Life Re on a facultative
basis, will require approval by Life Re prior to
reinstatement of such a policy, if the Company has
retained less then 50% of the risk. Upon such
approval, reinsurance for the policy will be for the
amount that would be in force had the policy not been
reduced, terminated or lapsed.
In connection with all such reinstatements the Company shall
pay Life Re all reinsurance premiums and interest in like manner as the
Company has received under its policy.
3. NONFORFEITURE BENEFITS
Life Re shall not participate in nonforfeiture benefits.
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4. POLICY LOANS
Life Re will not make policy loans on policies reinsured under
this Agreement.
5. CONTRACTUAL CONVERSIONS AND EXCHANGES
In the event of a contractual conversion or exchange,
understood to be one which requires no evidence or insurability, the
reinsurer of the original policy shall reinsure the risk resulting from
such conversion or exchange rates shown in Part I of Schedule C
point-in- scale. The reinsured Net Amount at Risk on the policy
resulting from such conversion or exchange shall not exceed the current
reinsured Net Amount at Risk on the policy or policies being converted
or exchanged. If, however, the conversion or exchange results in an
increase in the risk, the amount of increase shall be subject to
evidence of insurability.
6. NON CONTRACTUAL EXCHANGES
If Life Re is the insurer of the original policy, non
contractual exchanges shall be subject to evidence of insurability.
Reinsurance premiums for the risk resulting from the exchange shall be
the agreed upon exchange premiums. If a reinsurer other than Life Re is
the insurer of the original policy, non contractual
exchanges shall be subject to evidence of insurability and may
be submitted to Life Re as new business.
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ARTICLE X
INSOLVLENCY
All reinsurance under this Agreement will be paid by Life Re
directly to the Company, its liquidator, receiver, or statutory
successor, on the basis of the liability of the Company under the
policy or policies reinsured without diminution because of the
insolvency of the Company. In the event of the insolvency of the
Company, the liquidator, receiver, or statutory successor of the
Company will give written notice of a pending claim against the Company
on any policy reinsured within a reasonable time after the claim is
filed in the insolvency proceedings. While the claim is pending, Life
Re may investigate and interpose, at its own expense, in the
proceedings where the claim is to be adjudicated, any defenses which it
may deem available to the Company or its liquidator, receiver, or
statutory successor. The expense incurred by Life Re will be charged,
subject to court approval, against the Company as an expense of
liquidation to the extent of a proportionate share of the benefit that
accrues to the Company as a result of the defenses by Life Re. Where
two or more reinsurers are involved and a majority in interest elect to
defend a claim, the expense will be apportioned in accordance with the
terms of the
Reinsurance Agreement as if the expense had been incurred
by the Company.
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ARTICLE XI
ARBITRATION
Life Re and the Company intend that any dispute between them
under or with respect to this Agreement be resolved without resort to
any litigation. Accordingly, Life Re and the Company agree that they
will negotiate diligently and in good faith to agree on a mutually
satisfactory resolution of any such dispute; provided, however, that if
any such dispute cannot be resolved by them within sixty calendar days
(or such longer period as the parties may agree) after commending such
negotiations, Life Re and the Company agree that they will submit such
dispute to arbitration in the manner specified in, and such arbitration
proceeding will be conducted in accordance with, the rules of the
American Arbitration Association.
The arbitration hearing will be before a panel of three
arbitrators, each of whom must be a present or former officer of a life
insurance or life reinsurance company. Life Re and the Company will
each appoint one arbitrator by written notification to the other party
within thirty calendar days after the date of the mailing of the
notification initiating the arbitration. These two arbitrators will
then select the third arbitrator within sixty calendar days after the
date of the mailing of the notification initiating arbitration.
If either Life Re or the Company fail to appoint an
arbitrator, or should the two arbitrators be unable to agree upon the
choice of a third arbitrator, the president of the American Arbitration
Association or of its successor organization or (if necessary) the
president of any similar organization designated by lot of Life Re and
the Company within thirty calendar days after the request will appoint
the necessary arbitrators.
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The vote or approval of a majority of the arbitrators will
decide any question considered by the arbitrators; PROVIDED, HOWEVER,
that if no two arbitrators reach the same decision, then the average of
the two closest mathematical determinations will constitute the
decision of all three arbitrators. The place of arbitration will be
Stamford, Connecticut. Each decision (including without limitation each
award) of the arbitrators will be final and binding on all parties and
will be nonappealable, and (at the request of either Life Re or the
Company) any award of the arbitrators may be confirmed by a judgment
entered by any court of competent jurisdiction. Any award or judgment
will bear interest at an appropriate interest rate. Each party will be
responsible for paying (a) all fees and expenses charged by its
respective counsel, accountants, actuaries, and other representatives
in conjunction with such arbitration and (b) one-half of the fees and
expenses charged by each arbitrator.
ARTICLE XII
GENERAL PROVISIONS
1. POLICY FORMS AND RATES
The Company will furnish Life Re with a copy of its
application forms, policy and rider forms, premium and non-forfeiture
value manuals, reserve tables and any other forms or tables needed for
proper handling of reinsurance under this Agreement. It will advise
Life Re promptly of any changes or new forms it may adopt from time to
time.
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2. REINSURANCE CONDITIONS
The reinsurance is subject to the same limitations and
conditions as the insurance under the policy or policies written by the
Company on which the reinsurance is based.
3. EXPENSES
The Company will bear the expense of all medical examinations,
inspection fees, and other charges in connection with the original
policy.
4. ERRORS AND OMISSIONS
If either the Company or Life Re shall fail to perform an
obligation under this Agreement, and such failure shall be the result
of an Error on the part of the Company or Life Re, such Error shall be
corrected by restoring both the Company and Life Re to the positions
they would have occupied had no such Error occurred. For this purpose
Error shall mean any clerical mistake made inadvertently, excluding
errors of judgment and all other forms of error. For business reported
but not covered under the provisions of this Agreement, Life Re shall
be obligated only for the return of premium paid.
5. OFFSET
Any amount which either the Company or Life Re is
contractually obligated to pay to the other party may be paid out of
any amount which is due and unpaid under this Agreement or under any
other agreement heretofore or hereafter entered into between the
Company and Life Re. The application of this offset provision shall not
be deemed to constitute diminution in the event of insolvency.
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6. INSPECTION
At any reasonable time, Life Re may inspect the original
papers and any and all books or documents at the Home Office of the
Company relating to or affecting reinsurance under this Agreement.
ARTICLE XIII
DURATION OF AGREEMENT
This Agreement will be effective on and after the effective
date stated in Article XIV. It is unlimited in duration but may be
amended by mutual consent of the Company and Life Re. It may be
terminated as to new reinsurance by either party giving ninety (90)
days' written notice to the other. Termination as to new reinsurance
does not affect existing reinsurance. That reinsurance will remain in
force until termination of the Company's policy or policies on which
the reinsurance is based in accordance with the terms of this
Agreement.
23
ARTICLE XIV
EXECUTION
In witness of the above, this Agreement is signed in duplicate
at the dates and places indicated with an effective date of January 1,
1993, and shall apply to eligible policies applied for on and after
such date and eligible policies applied for on and after such date
which were backdated for up to six (6) months to save age.
STATE MUTUAL LIFE ASSURANCE
Date: March 8, 1994 COMPANY OF AMERICA
-----------------------------------
Place: Worcester, MA By: /s/ Xxxxxx X. Xxxxx, Xx.
----------------------------------- -----------------------------------
Witness: /s/ Title: AVP & Actuary
----------------------------------- -----------------------------------
LIFE REASSURANCE
Date: February 22, 0000 XXXXXXXXXXX XX XXXXXXX
-----------------------------------
Place: Stamford, CT By: /s/
----------------------------------- -----------------------------------
Witness: /s/ Title: Assistant Vice President
----------------------------------- -----------------------------------
24
Amendment I to
Reinsurance Agreement 5785-1 (Automatic Non Refund Bulk
- Universal Life) between the STATE MUTUAL LIFE ASSURANCE COMPANY OF
AMERICA of Worcester, Massachusetts, and the LIFE REASSURANCE
CORPORATION OF AMERICA of Stamford, Connecticut.
AMENDMENT I.
Effective July 1, 1993, the following products are added to the terms
of this Agreement.
ELPLUS 93 (FORM NUMBER 1019-93)
VEL93 (FORM NUMBER 1018-93)
All provisions of the
Reinsurance Agreement not in conflict with the
provisions of these Amendments will continue unchanged.
These Amendments are signed in duplicate at the dates and places
indicated with an effective date of July 1, 1993.
STATE MUTUAL LIFE ASSURANCE
Date: March 8, 1994 COMPANY OF AMERICA
-----------------------------------
Place: Worcester, MA By: /s/ Xxxxxx X. Xxxxx, Xx.
----------------------------------- -----------------------------------
Witness: /s/ Title: AVP & Actuary
----------------------------------- -----------------------------------
LIFE REASSURANCE
Date: February 22, 0000 XXXXXXXXXXX XX XXXXXXX
-----------------------------------
Place: Stamford, CT By: /s/
----------------------------------- -----------------------------------
Witness: /s/ Title: Assistant Vice President
----------------------------------- -----------------------------------
LIFE RE AGREEMENT I, AGREEMENT #5785-1
SCHEDULE A
AGREEMENT NUMBER 5785-1
PART I - RETENTION LIMITS OF STATE MUTUAL LIFE ASSURANCE COMPANY OF
AMERICA
A. LIFE
STANDARD RISKS,
SPECIAL CLASSES SPECIAL CLASSES
A THROUGH H AND J, L, & P, AND
FLAT EXTRAS OF FLAT EXTRAS OF
AGES $20.00 OR LESS $20.01 AND OVER
---- -------------- ---------------
0 $ 500,000 $ 250,000
1 - 60 2,000,000 1,000,000
61 - 70 1,000,000 500,000
71 - 80 500,000 250,000
NOTES:
(1) The above maximum limits are also the maximums on any
one life for all plans and riders combined.
(2) The minimum size reinsurance case will be $50,001.
AVIATION
Any situation involving aviation will use a $500,000
retention.
B. WAIVER OF MORTALITY RISK PREMIUM
Fully Retained
C. ACCIDENTAL DEATH BENEFIT
Fully Retained.
Schedule A cont
Schedule A, Pg 2
PART II - AUTOMATIC BINDING LIMITS (THROUGH AGE 80)
A. LIFE
a) OTHER THAN SPECIAL AUTOMATIC
Three and one-third (3 1/3) times life retention of
which the maximum to Life Re shall be $2,000,000 or
25% of the excess.
b) SPECIAL AUTOMATIC
If the Company retains less than its maximum
retention, Life Re shall accept automatically
reinsurance in an amount not to exceed 25% of the
issue amount.
B. WAIVER OF MORTALITY RISK PREMIUM
None
C. ACCIDENTAL DEATH BENEFIT
None
PART III - PLANS COVERED
The preceding schedules refer to insured lives whose surnames
begin with the letters A through Z under the following SMA Life
Assurance Company Life Plans: Exceptional Life Plus,
Exceptional Life II, Variable Exceptional Life, Exceptional
Retirement Life II and Exceptional Advantage.
SCHEDULE B - PART I
AGREEMENT NUMBER 5785-1
SELF-ADMINISTERED REINSURANCE
POLICY TRANSACTION DETAIL REPORT
A. The policy detail report should be broken down into the
following categories:
1 - New Business
2 - First Year Other Than New Business*
3 - Renewals
4 - Terminations - (First year/Renewal split optional,
subtotals by termination type optional).
5 - Changes - (First year/Renewal split optional, subtotals by
change type optional).
*If premium mode other than annual.
Subtotals should be provided by plan code for each of the
above categories. Where smokers and non-smokers are not
assigned separate plan codes, subtotals for the above should
be further broken down to provide totals by smoking habit.
Automatic and facultative business should be shown separately
for each of the five categories above.
If more than one currency is involved per treaty, provide
separate reports by currency.
If there is any qualified pension business ceded, please
provide separate reporting.
B. FIELD DESCRIPTIONS
1. Insured Information
Name - Full name (Last, first, middle) for insured
DOB - Full date of birth (MM/DD/YY) for insured
Sex - M/F
Schedule B cont.
Schedule B, Pg 2
S/N - Smoker habit. Up to three spaces should be allotted for
this field to accommodate codes relevant to the treaty
reported. Suggested codes are:
S - Smoker
N - Nonsmoker
A - Aggregate (or composite)
PN - Preferred nonsmoker
PS - Preferred smoker
Age - Actual age at issue
ST - State of residence
2. Policy Information
Policy No. - Ceding company's policy number.
- Policies should be listed in numerical order.
Plan - Ceding company's plan code.
DOI - Full policy date (MM/DD/YY). This is the date
from which renewal processing will be driven.
DRN - Duration from original policy date (i.e., where
attained scale rates apply to policy conversions
or replacements).
A/F - Automatic/Facultative indicator. Business
ceded on a fac/ob basis can be indicated by
an "0" in this field.
Rating - Indicate table if substandard. 100% for standard
issues.
Flat - Flat extra amount per thousand.
Yrs - Duration of flat extra (number of years).
Schedule B cont.
Schedule B, Pg 3
OPT - For Universal Life plans only, indicate death
benefit Option 1 or 2. Under Option 1, the level
death benefit option, the amount at risk decreases as
the cash value accumulates. Option 2 produces an
increasing death benefit, equivalent to the specified
amount plus the accumulated cash value. The Reinsured
Net Amount at Risk remains level under this option.
COV - L - Basic Coverage
WP - Waiver of Premium
ADB - Accidental Death Benefit
DIRECT - Full face amount of the coverage at issue.
FACE
REINS. - Current reinsured amount at risk.
AAR
Chg. Amt. - ANY change to the reinsurance amount at risk since
previous report should be illustrated here.
Chg. Dt. - Effective date of policy changes. Applies to
termination and change reports, may be blank for new
business and renewals.
TR. - Transaction type (see list in Part C below).
Base Prem. - Gross premium due for each coverage (excluding
substandard premium amounts).
SStd. Prem.- Gross substandard premium, i.e., multiple and/or flat
extra premiums, if applicable.
Base Allow.- Allowance (commission) due on base premium amount.
SStd Allow.- Allowance (commission) due on substandard premium
amount.
Net - Net amount due per coverage.
Schedule B cont.
Schedule B, Pg 4
C. TRANSACTION TYPES
Suggested alpha codes for each of the various transaction types are:
1. NB - New Business
2. FO - First year other than New Business
3. RL - Renewal
4. Terminations
LP - Lapse
NT - Not Taken
SR - Surrender
EX - Expiry
DH - Death
RC - Recapture
5. Changes
RS - Reinstatement
IC - Increase
DC - Decrease
CA - Conversions on
CO - Conversions off
RA - Internal Replacements on
RO - Internal Replacements off
ET - ETI
RP - Reduced Paid Up
MS - Misc. (e.g. name changes, benefit additions)
SCHEDULE B, PART I
SELF ADMINISTERED/BULK REINSURANCE SUMMARY REPORTING FORM
Omitted 10 Pages
SCHEDULE C - PART I (Amended)
Annual Mortality Charges for Plans Outlined In Schedule C - Part II
Omitted 1 Page
LIFE RE AMENDMENT III, AGREEMENT #5785-1
Amendment IV to
Reinsurance Agreement 5785-1 (Automatic Non Refund Bulk -
Universal Bulk) between the STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA of
Worcester, Massachusetts, and the LIFE REASSURANCE CORPORATION OF AMERICA of
Stamford, Connecticut.
AMENDMENT IV.
Effective July 1, 1993, Schedule C, Part II is herby voided and replaced by the
attached Schedule C, Part II - Amended.
All provisions of the
Reinsurance Agreement not in conflict with the provisions
of this Amendment will continue unchanged.
This Amendment is signed in duplicate at the dates and places indicated with an
effective date of July 1, 1993.
STATE MUTUAL LIFE ASSURANCE
Date: July 6, 1994 COMPANY OF AMERICA
-----------------------------------
Place: Worcester, MA By: /s/ Xxxxxx X. Xxxxx, Xx.
----------------------------------- -----------------------------------
Witness: /s/ Title: AVP & Actuary
----------------------------------- -----------------------------------
LIFE REASSURANCE
Date: May 16, 0000 XXXXXXXXXXX XX XXXXXXX
-----------------------------------
Place: Stamford, CT By: /s/
----------------------------------- -----------------------------------
Witness: /s/ Title: Assistant Vice President
----------------------------------- -----------------------------------
LIFE RE AMENDMENT IV, AGREEMENT #5785-1
SCHEDULE C - PART II (AMENDED)
DISCOUNTS
AGREEMENT NUMBER 5785-1
The discounts granted for reinsurance amounts expressed as a percentage of the
premium rate charged by the Company are shown below for the applicable benefit:
PLAN OF INSURANCE DISCOUNTS
NON-SMOKER
SMOKER
EXCEPTIONAL LIFE PLUS 1st Year 100% 100%
EXCEPTIONAL LIFE PLUS 93 2 - 10 55% 50%
EXCEPTIONAL LIFE II 11th + Later 34% 26%
VARIABLE EXCEPTIONAL LIFE
VARIABLE EXCEPTIONAL LIFE 93
EXCEPTIONAL RETIREMENT LIFE II
EXCEPTIONAL ADVANTAGE*
OTHER INSURED RIDER
* The Exceptional Advantage Plan will be discounted 5% on the single life
reinsurance premiums for the two insureds.
For substandard table extras, discounts will be the same as those shown for
standard ratings.
The allowance for commissions granted for reinsurance amounts expressed as a
percentage of the premium rate charged by the Company are shown below for the
applicable benefit.
BENEFIT FIRST YEAR RENEWAL YEARS
Life Insurance - Flat Extra Premiums
Aviation Hazard 10% 10%
Temporary Extras (5 yrs. or less) 10% 10%
Permanent Extras (5 yrs. or more) 100% 10%
EFFECTIVE: JULY 1, 1993
LIFE RE AMENDMENT IV, AGREEMENT #5785-1
Amendment V to
Reinsurance Agreement 5785-1 (Automatic Non Refund Bulk -
Universal Life) between the STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA of
Worcester, Massachusetts, and the LIFE REASSURANCE CORPORATION OF AMERICA of
Stamford, Connecticut.
AMENDMENT V.
Effective April 1, 1994, all business produced through NEW YORK for the
Exceptional Life Plus 93 and Variable Exceptional Life 93 plans will be ceded
directly to Life Reassurance Corporation of America.
All provisions of the
Reinsurance Agreement not in conflict with the provisions
of this Amendment will continue unchanged.
This Amendment is signed in duplicate at the dates and places indicated with an
effective date of April 1, 1994.
STATE MUTUAL LIFE ASSURANCE
Date: July 6, 1994 COMPANY OF AMERICA
-----------------------------------
Place: Worcester, MA By: /s/ Xxxxxx X. Xxxxx, Xx.
----------------------------------- -----------------------------------
Witness: /s/ Title: AVP & Actuary
----------------------------------- -----------------------------------
LIFE REASSURANCE
Date: May 16, 0000 XXXXXXXXXXX XX XXXXXXX
-----------------------------------
Place: Stamford, CT By: /s/
----------------------------------- -----------------------------------
Witness: /s/ Title: Assistant Vice President
----------------------------------- -----------------------------------
LIFE RE AMENDMENT V, AGREEMENT #5785-1
Amendment VI to
Reinsurance Agreement 5785-1 (Automatic Non Refund Bulk -
Universal Life) between the STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA of
Worcester, Massachusetts, and the LIFE REASSURANCE CORPORATION OF AMERICA of
Stamford, Connecticut.
AMENDMENT VI.
Effective January 1, 1993, Schedule C, Part II - Amended is hereby voided and
replaced by the attached Schedule C, Part II - Amended.
All provisions of the
Reinsurance Agreement not in conflict with the provisions
of this Amendment will continue unchanged.
This Amendment is signed in duplicate at the dates and places indicated with an
effective date of January 1, 1993.
STATE MUTUAL LIFE ASSURANCE
Date: September 12, 1994 COMPANY OF AMERICA
-----------------------------------
Place: Worcester, MA By: /s/ Xxxxxx X. Xxxxx, Xx.
----------------------------------- -----------------------------------
Witness: /s/ Title: AVP & Actuary
----------------------------------- -----------------------------------
LIFE REASSURANCE
Date: September 6, 0000 XXXXXXXXXXX XX XXXXXXX
-----------------------------------
Place: Stamford, CT By: /s/
----------------------------------- -----------------------------------
Witness: /s/ Title: Vice President
----------------------------------- -----------------------------------
LIFE RE AMENDMENT VI, AGREEMENT #5785-1
SCHEDULE C - PART II (AMENDED)
DISCOUNTS
AGREEMENT NUMBER 5785-1
The discounts granted for reinsurance amounts expressed as a percentage of the
premium rate charged by the Company are shown below for the applicable benefit:
PLAN OF INSURANCE DISCOUNTS
EXCEPTIONAL LIFE PLUS
EXCEPTIONAL LIFE PLUS 93
EXCEPTIONAL LIFE II NON-SMOKER SMOKER
VARIABLE EXCEPTIONAL LIFE
VARIABLE EXCEPTIONAL LIFE 93 1st Year 100% 100%
EXCEPTIONAL RETIREMENT LIFE II 2 - 10 55% 50%
EXCEPTIONAL ADVANTAGE* 11th + Later 34% 26%
OTHER INSURED RIDER
* The Exceptional Advantage Plan will be reinsured on a single-life
basis. Life Re will also reinsure the Survivorship Rider attached to
this plan. No discounts will apply to the Survivorship Rider.
For substandard table extras, discounts will be the same as those shown for
standard ratings.
The allowance for commissions granted for reinsurance amounts expressed as a
percentage of the premium rate charged by the Company are shown below for the
applicable benefit.
BENEFIT FIRST YEAR RENEWAL YEARS
Life Insurance - Flat Extra Premiums
Aviation Hazard 10% 10%
Temporary Extras (5 yrs. or less) 10% 10%
Permanent Extras (5 yrs. or more) 100% 10%
EFFECTIVE: JANUARY 1, 1993
Amendment VII to Reinsurance Agreement 5785-1 (Automatic Non Refund Bulk -
Universal Life) between the STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA of
Worcester, Massachusetts, and the LIFE REASSURANCE CORPORATION OF AMERICA of
Stamford, Connecticut.
AMENDMENT VII.
Effective May 1, 1995 the Select Life Product (Form Number 1027-95) is hereby
added to the terms of this Agreement. Schedule A, Page 2 and Schedule C, Part II
are hereby voided and replaced by the attached Schedule A, Page 2 and Schedule
C, Part II - Amended.
All provisions of the Reinsurance Agreement not in conflict with the provisions
of this Amendment will continue unchanged.
This Amendment is signed in duplicate at the dates and places indicated with an
effective date of May 1, 1995.
STATE MUTUAL LIFE ASSURANCE
Date: October 16, 1995 COMPANY OF AMERICA
-----------------------------------
Place: Worcester, MA By: /s/ Xxxxxx X. Xxxxx, Xx.
----------------------------------- -----------------------------------
Witness: /s/ Title: AVP & Actuary
----------------------------------- -----------------------------------
LIFE REASSURANCE
Date: October 11, 0000 XXXXXXXXXXX XX XXXXXXX
-----------------------------------
Place: Stamford, CT By: /s/
----------------------------------- -----------------------------------
Witness: /s/ Title: Vice President
----------------------------------- -----------------------------------
LIFE RE AMENDMENT VII, AGREEMENT #5785-1
08/02/1995
Schedule A
Page 2 - Amended
PART II - AUTOMATIC BINDING LIMITS (THROUGH AGE 80)
A. LIFE
a) OTHER THAN SPECIAL AUTOMATIC
Three and one-third (3 1/3) times life retention of
which the maximum to Life Re shall be $2,000,000 or
25% of the excess.
b) SPECIAL AUTOMATIC
If the Company retains less than its maximum
retention, Life Re shall accept automatically
reinsurance in an amount not to exceed 25% of the
issue amount.
B. WAIVER OF MORTALITY RISK PREMIUM
None
C. ACCIDENTAL DEATH BENEFIT
None
PART III - PLANS COVERED
The preceding schedules refer to insured lives whose surnames
begin with the letters A through Z under the following SMA Life
Assurance Company Life Plans:
EXCEPTIONAL LIFE PLUS
EXCEPTIONAL LIFE PLUS 93
EXCEPTIONAL LIFE II
VARIABLE EXCEPTIONAL LIFE
VARIABLE EXCEPTIONAL LIFE 93
EXCEPTIONAL RETIREMENT LIFE II
EXCEPTIONAL ADVANTAGE
SELECT LIFE
OTHER INSURED RIDER
EFFECTIVE: MAY 1, 1995
LIFE RE AMENDMENT VII, AGREEMENT #5785-1
08/02/1995
SCHEDULE C - PART II (AMENDED)
DISCOUNTS
AGREEMENT NUMBER 5785-1
The discounts granted for reinsurance amounts expressed as a percentage of the
premium rate charged by the Company are shown below for the applicable benefit:
PLAN OF INSURANCE DISCOUNTS
EXCEPTIONAL LIFE PLUS
EXCEPTIONAL LIFE PLUS 93
EXCEPTIONAL LIFE II NON-SMOKER SMOKER
VARIABLE EXCEPTIONAL LIFE
VARIABLE EXCEPTIONAL LIFE 93 1st Year 100% 100%
EXCEPTIONAL RETIREMENT LIFE II 2 - 10 55% 50%
EXCEPTIONAL ADVANTAGE* 11th + Later 34% 26%
OTHER INSURED RIDER
* The Exceptional Advantage Plan will be reinsured on a single-life basis.
Life Re will also reinsure the Survivorship Rider attached to this plan. No
discounts will apply to the Survivorship Rider.
For substandard table extras, discounts will be the same as those shown for
standard ratings.
The allowance for commissions granted for reinsurance amounts expressed as a
percentage of the premium rate charged by the Company are shown below for the
applicable benefit.
BENEFIT FIRST YEAR RENEWAL YEARS
Life Insurance - Flat Extra Premiums
Aviation Hazard 10% 10%
Temporary Extras (5 yrs. or less) 10% 10%
Permanent Extras (5 yrs. or more) 100% 10%
EFFECTIVE: MAY 1, 1995
LIFE RE AMENDMENT VII, AGREEMENT #5785-1
08/02/1995
Amendment VIII to Reinsurance Agreement 5785-1 (Automatic Non Refund Bulk -
Universal Life) between the STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA of
Worcester, Massachusetts (the "Company"), and the LIFE REASSURANCE CORPORATION
OF AMERICA of Stamford, Connecticut ("Life Re").
AMENDMENT VIII.
Effective October 11, 1995 the party referred to in this Agreement as the
"Company" shall hereafter be FIRST ALLMERICA FINANCIAL LIFE INSURANCE COMPANY of
Worcester, Massachusetts.
All provisions of the Reinsurance Agreement not in conflict with the provisions
of this Amendment will continue unchanged.
This Amendment is signed in duplicate at the dates and places indicated with an
effective date of October 11, 1995.
STATE MUTUAL LIFE ASSURANCE
Date: March 26, 1996 COMPANY OF AMERICA
-----------------------------------
Place: Worcester, MA By: /s/ Xxxxxx X. Xxxxx, Xx.
----------------------------------- -----------------------------------
Witness: /s/ Title: AVP & Actuary
----------------------------------- -----------------------------------
LIFE REASSURANCE
Date: March 21, 0000 XXXXXXXXXXX XX XXXXXXX
-----------------------------------
Place: Stamford, CT By: /s/
----------------------------------- -----------------------------------
Witness: /s/ Title: Vice President
----------------------------------- -----------------------------------
LIFE RE AMENDMENT VIII, AGREEMENT #5785-1
03/21/1996
Amendment IX to Reinsurance Agreement 5785-1 (Automatic Non Refund Bulk -
Universal Life) between FIRST ALLMERICA FINANCIAL LIFE INSURANCE COMPANY of
Worcester, Massachusetts (the "Company"), and LIFE REASSURANCE CORPORATION OF
AMERICA of Stamford, Connecticut ("Life Re").
AMENDMENT IX.
Effective August 1, 1997 Schedule A, page 1 is hereby voided and replaced by the
attached Schedule A, page 1 - amended.
All provisions of the Reinsurance Agreement not in conflict with the provisions
of this Amendment will continue unchanged.
This Amendment is signed in duplicate at the dates and places indicated with an
effective date of August 1, 1997.
STATE MUTUAL LIFE ASSURANCE
Date: August 15, 1997 COMPANY OF AMERICA
-----------------------------------
Place: Worcester, MA By: /s/
----------------------------------- -----------------------------------
Witness: /s/ Title: AVP & Actuary
------------------------------------ -----------------------------------
LIFE REASSURANCE
Date: August 12, 0000 XXXXXXXXXXX XX XXXXXXX
-----------------------------------
Place: Stamford, CT By: /s/
----------------------------------- -----------------------------------
Witness: /s/ Title: Assistant Vice President
------------------------------------ -----------------------------------
LIFE RE AMENDMENT IX, AGREEMENT #5785-1
08/12/1997
SCHEDULE A
AGREEMENT NUMBER 5785-1
PART I -
RETENTION LIMITS OF FIRST ALLMERICA FINANCIAL LIFE INSURANCE COMPANY
A. LIFE
STANDARD RISKS,
SPECIAL CLASSES SPECIAL CLASSES
A THROUGH H AND J, L, & P, AND
FLAT EXTRAS OF FLAT EXTRAS OF
AGES $20.00 OR LESS $20.01 AND OVER
---- -------------- ---------------
0 $ 500,000 $ 250,000
1 - 60 2,000,000 1,000,000
61 - 70 1,000,000 500,000
71 - 80 500,000 250,000
81 - 85 500,000 (up to Table F)
Notes:
(1) The above maximum limits are also the maximums on any
one life for all plans and riders combined.
(2) The minimum size reinsurance case will be $50,001.
AVIATION
Any situation involving aviation will use a $500,000
retention.
B. WAIVER OF MORTALITY RISK PREMIUM
Fully Retained
C. ACCIDENTAL DEATH BENEFIT
Fully Retained.
EFFECTIVE: AUGUST 1, 1997
LIFE RE AMENDMENT IX, AGREEMENT #5785-1
08/12/1997
