AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM
REINSURANCE AGREEMENT
between
HARTFORD LIFE INSURANCE COMPANY
and
RGA REINSURANCE COMPANY
Effective Date: March 1, 2004
ARTICLES
I. Parties to the Agreement 3
II. Reinsurance Coverage 3
III. Liability 5
IV. Notification of Reinsurance 6
V. Reinsurance Premiums 6
VI. Reserves 8
VII. Oversights 9
VIII. Reductions, Terminations, and Changes 9
IX. Increase in Retention 10
X. Reinstatement 11
XI. Expenses 12
XII. Claims 12
XIII. Extra-Contractual Damages 14
XIV. Inspection of Records 15
XV. DAC Tax - Section 1.848-2 (g)(8) Election 15
XVI. Insolvency 16
XVII. Offset 17
XVIII. Arbitration 17
XIX. Termination 18
XX. General Provisions 19
XXI. Confidentiality 20
XXII. Notices and Communications 21
XXIII. Effective Date 22
XXIV. Execution 22
SCHEDULES
A. Plans Covered under This Agreement 23
B. Basis of Reinsurance 25
EXHIBITS
I. Reinsurance Premium Calculation 26
II. Retention, Binding, and Issue Limits 27
III. LS Limits & Retention -- LS Worksheet 28
IV. Xxxxx Program 29
V. Director's Charitable Award Program (DCAP) 30
VI. Annual per 1000 YRT Reinsurance Rates 32
ALL SCHEDULES AND EXHIBITS ATTACHED WILL BE CONSIDERED PART OF THIS REINSURANCE
AGREEMENT.
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ARTICLE I
PARTIES TO THE AGREEMENT
This Agreement is between Hartford Life Insurance Company (referred to as the
Ceding Company), and RGA Reinsurance Company (referred to as the Reinsurer).
The acceptance of risks under this Agreement will create no right or legal
relationship between the Reinsurer and the insured owner or beneficiary of any
insurance policy or contract of the Ceding Company. This Agreement will be
binding upon the Ceding Company and the Reinsurer and their respective
successors and assignees.
ARTICLE II
REINSURANCE COVERAGE
Reinsurance under this Agreement will apply to insurance issued by the Ceding
Company on the Plans of Insurance shown in Schedule A. Such Plans of Insurance
shall be reinsured with the Reinsurer on an automatic basis, subject to the
requirements set forth in Section A below, or on a facultative basis, subject to
the requirements set forth in Section B below, or on a facultative obligatory
basis, subject to the requirements set forth in Section C below. The
specifications for all reinsurance under this Agreement are provided in Schedule
B.
A. Requirements for Automatic Reinsurance
For risks which meet the requirements for Automatic Reinsurance as set forth
below, the Reinsurer will participate in a reinsurance pool whereby the
Reinsurer will automatically reinsure a portion of the insurance risks as
indicated in Schedule B. The requirements for Automatic Reinsurance are as
follows:
1. Each life must be a resident of the United States or Canada at the time of
application.
2. Each life must be underwritten according to the Ceding Company's standard
underwriting practices and guidelines. Any life falling into the category of
special underwriting programs will be excluded from this Agreement unless
previously agreed to by the Reinsurer via a written amendment.
3. Any risk offered on a facultative basis other than for size by the Ceding
Company to the Reinsurer or any other company will not qualify for Automatic
Reinsurance under this Agreement for the same risk and same life.
4. The minimum issue age will be 18 and the maximum issue age will be 90.
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B. Requirements for Facultative Reinsurance
1. If the requirements for Automatic Reinsurance are met, but the Ceding
Company prefers to apply for Facultative Reinsurance with the Reinsurer, or if
the requirements for Automatic Reinsurance are not met and the Ceding Company
applies for Facultative Reinsurance with the Reinsurer, then the Ceding Company
must submit to the Reinsurer all the papers, facsimiles, or sufficient evidence
agreed upon between the Ceding Company and the Reinsurer relating to the
insurability of the individual life for Facultative Reinsurance.
2. For applications for Facultative Reinsurance, the Ceding Company will send
copies of all of the papers or facsimiles relating to the insurability of each
life to the Reinsurer, with the exception of situations where one life is
uninsurable. In those situations, only the papers or facsimiles on the insurable
life will be sent. After the Reinsurer has examined the request, the Reinsurer
will promptly notify the Ceding Company of the underwriting offer subject to
additional requirements or the final underwriting offer. The final underwriting
offer on the individual risk will automatically terminate upon the earlier of
the withdrawal of the application or 120 days from the date of the final offer,
unless coverage is accepted or put in place earlier.
3. Notwithstanding the above, if the requirements for Automatic Reinsurance are
met except that the face amount of reinsurance applied for is greater than the
Automatic Issue Limit, but does not exceed the Automatic Processing Limit, then
the Ceding Company will submit to the Lead Reinsurer (as designated in Schedule
B) all papers relating to the insurability of the individual risk. The Lead
Reinsurer shall review the papers to determine if the risk should be reinsured
by the pool, and, if so, on what basis. The Lead Reinsurer shall provide the
Ceding Company with a response within 24 hours of receipt of the papers.
Approval of the Lead Reinsurer shall be binding on all other pool members. This
process shall be known as Automatic Processing and subject to the limitations in
Exhibits II and III.
C. Requirements for Facultative Obligatory Reinsurance
The Reinsurer agrees to a facultative obligatory arrangement whereby the Ceding
Company may cede a risk to the Reinsurer and the Reinsurer agrees to accept the
risk using the Ceding Company's underwriting evaluation, subject to the
following conditions:
1. The requirements for Automatic Reinsurance specified in Article II must be
met with one exception. This exception is that the total amount of insurance
issued and applied for in all companies on each risk has exceeded the jumbo
limits set forth in Exhibits II and III.
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2. The arrangement is available on all policy forms covered under this
Reinsurance Agreement.
3. The ceded risk is subject to the Facultative Obligatory Automatic Binding
Limits and the Facultative Obligatory Automatic Issue Limits, as stated in
Exhibits II and III. However, to the extent that the Reinsurer has already
filled its available capacity on the risk, the Reinsurer may reduce the provided
capacity by notifying the Ceding Company. In addition, the Reinsurer may choose
to provide Facultative Obligatory capacity greater than as specified in Schedule
B.
4. The Reinsurer will have a reasonable amount of time, but not to exceed two
(2) business days, to respond to the Ceding Company's request for a Facultative
Obligatory risk.
D. Basis of Reinsurance
Reinsurance under this Agreement will be on the basis as stated in Schedule B.
E. Policy Forms
When requested, the Ceding Company will furnish the Reinsurer with a copy of
each policy, rider, rate book, and applicable sales or marketing material that
applies to the life insurance reinsured hereunder.
ARTICLE III
LIABILITY
A. The Reinsurer's liability for Automatic and Facultative Obligatory
Reinsurance will begin simultaneously with the Ceding Company's liability.
B. The Reinsurer's liability for Facultative Reinsurance coverage will begin
simultaneously with the Ceding Company's liability once the Reinsurer has
accepted the application for Facultative Reinsurance and the Ceding Company has
accepted the offer.
C. In no event shall the reinsurance be in force and binding if the issuance
and delivery of such insurance constituted the doing of business in a
jurisdiction in which the Ceding Company was not properly licensed.
D. The Reinsurer's liability for reinsurance on the individual risk will
terminate when the Ceding Company's liability terminates.
E. The Reinsurer will not be liable for benefits paid under the Ceding
Company's conditional receipt or temporary insurance agreement unless all the
conditions for the conditional receipt or temporary insurance agreement are met.
The Reinsurer's liability under the Ceding Company's conditional receipt or
temporary insurance agreement is limited to the lesser of (1) or (2) below:
1. The Automatic Binding limits with the Reinsurer shown in Exhibits II and
III, or
2. The amount for which the Ceding Company is liable, less its retention shown
in Exhibits II and III
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The pre-issue liability applies provided that the Ceding Company has followed
its normal cash-with-application procedures for such coverage. After a policy
has been issued, no reinsurance benefits are payable under this pre-issue
coverage provision.
F. The liability of each pool member shall be separate and not joint with the
other pool members.
G. The Reinsurer shall establish reserves on the Reinsurer's portion of the
policy on the reserve basis specified in Article VI.
ARTICLE IV
NOTIFICATION OF REINSURANCE
A. For Automatic and Facultative Reinsurance, the Ceding Company will notify
the Reinsurer on the monthly statement as described in Article V.
B. When reinsurance is reduced or changed, the Ceding Company will notify the
Reinsurer on the monthly accounting statement.
ARTICLE V
REINSURANCE PREMIUMS
A. Computation
Premiums for reinsurance under this Agreement will be computed as described in
Exhibit I.
B. Premium Accounting
1. Payment of Reinsurance Premiums
For Automatic and Facultative Reinsurance, following the close of each calendar
month, the Ceding Company will send the Reinsurer a statement and a listing of
new business, changes, and terminations. The Reinsurer will refund to the Ceding
Company all unearned Reinsurance Premiums not including policy fees, less
applicable allowances, arising from reductions, terminations and changes as
described in Article VIII.
Reinsurance Premiums, as calculated in Exhibit I, based on the Reinsured Net
Amount at Risk, as defined in Schedule B, are paid annual in advance each month
for those policies renewing during that month.
If a net reinsurance premium balance is payable to the Reinsurer, the Ceding
Company will forward this balance within thirty (30) days after the close of
each month.
If a net reinsurance premium balance is payable to the Ceding Company, the
balance due will be subtracted from the reinsurance premium payable by the
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Ceding Company for the current month. The Reinsurer shall pay any remaining
balance due the Ceding Company within thirty (30) days after the Ceding Company
submits the statement.
2. Termination Because of Non-Payment of Premium
If undisputed reinsurance premiums are delinquent, the Reinsurer has the right
to terminate the reinsurance risks on those policies listed on the delinquent
monthly statement by giving the Ceding Company ninety (90) days' advance written
notice. If the delinquent premiums have not been paid as of the close of the
ninety (90) day period, the Reinsurer's liability will terminate for the risks
described in the delinquency notice.
Regardless of the termination, the Ceding Company will continue to be liable to
the Reinsurer for all unpaid reinsurance premiums earned up to the date of
termination.
3. Reinstatement of a Delinquent Statement
The Ceding Company may reinstate the terminated risks within sixty (60) days
after the effective date of termination by paying the unpaid reinsurance
premiums for the risks in force prior to the termination. However, the Reinsurer
will not be liable for any claim incurred between the date of termination and
reinstatement. The effective date will be the date the required back premiums
are received.
4. Currency
The reinsurance premiums and benefits payable under this Agreement will be
payable in the lawful money of the United States.
5. Detailed Listing
Before the end of the first quarter, the Ceding Company will send the Reinsurer
a detailed listing of all reinsurance in force as of the close of the
immediately preceding calendar year.
6. Guaranteed Rates
The Reinsurer reserves the right to increase reinsurance premiums only if the
Ceding Company increases the cost of insurance rates to the policy owner. The
increase to these reinsurance premiums shall be no more than proportional to the
increase to the policy owners' cost of insurance rates.
7. Overpayment of Premium
If the Ceding Company overpays a reinsurance premium and the Reinsurer accepts
the overpayment, the Reinsurer's acceptance will not constitute nor create a
reinsurance liability nor result in any additional reinsurance. Instead, the
Reinsurer will be liable to the Ceding Company for a credit in the amount of the
overpayment.
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If this overpayment is not returned to the Ceding Company promptly, the Ceding
Company reserves the right to charge interest on reinsurance proceeds due. The
interest will be calculated according to the 90 Day Federal Government Treasury
rate as first published in the Wall Street Journal in the month following the
end of the billing period plus 50 basis points. The method of calculation will
be simple interest "Bankers' Rule" (or 360 day year).
8. Underpayment of Premium
If the Ceding Company fails to make a full premium payment for a policy or
policies reinsured hereunder, due to an oversight defined in Article VII, the
amount of reinsurance coverage provided by the Reinsurer shall not be reduced.
However, once the underpayment is discovered, the Ceding Company will be
required to pay to the Reinsurer the difference between the full premium amount
and the amount actually paid, without interest. If payment or the full premium
is not made within sixty (60) days after the discovery of the underpayment, the
underpayment shall be treated as a failure to pay premiums and subject to the
conditions of Section B.2, above.
The Reinsurer reserves the right to charge interest on overdue premiums. The
interest will be calculated according to the 90 Day Federal Government Treasury
Bill rate as first published in the Wall Street Journal in the month following
the end of the billing period plus 50 basis points. The method of calculation
will be simple interest "Bankers' Rule" (or 360 day year).
ARTICLE VI
RESERVES
A. Statutory Reserves for the Mortality Risk of the Policy
[Redacted]
B. Representations
The Reinsurer represents to the Ceding Company that the Reinsurer is properly
licensed or accredited so that the Ceding Company may claim statutory reserve
credit on its financial statements filed in all states in which the Ceding
Company is licensed to transact insurance business. In the event that as a
result of a change in the Reinsurer's licensing or accreditation status, the
Ceding Company must obtain security for statutory reserve credits taken with
respect to this reinsurance agreement, the Reinsurer will establish a trust or
letter of credit in a form which meets all applicable standards of law and
regulation to enable the Ceding Company to claim such reserve credit on its
statutory statements. The Reinsurer will bear the expense of establishing any
trusts or letter of credit with respect to this provision.
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ARTICLE VII
OVERSIGHTS
If there is an unintentional oversight, misunderstanding, delay or error in the
administration of this Agreement by the Ceding Company or the Reinsurer, it can
be corrected provided the correction takes place within a reasonable time after
the oversight, misunderstanding, delay, or error is first discovered. Both the
Ceding Company and the Reinsurer will be restored to the position they would
have occupied had the oversight or misunderstanding not occurred. Should it not
be possible to restore both parties to such a position, the Ceding Company and
the Reinsurer shall negotiate in good faith to equitably apportion any resulting
liabilities and expenses.
ARTICLE VIII
REDUCTIONS, TERMINATIONS AND CHANGES
A. Replacement or Change
If there is a contractual change, the insurance will continue to be reinsured
with the Reinsurer at joint life point-in-scale rates.
Exchanges from one last survivor plan reinsured under this Agreement to a
different last survivor plan will be reinsured at joint life point-in-scale
rates. Exchanges from one last survivor plan reinsured under this Agreement with
the Last Survivor Exchange Option Rider (24) or Twenty Four Month Exchange Rider
to two single life plans will be reinsured at single life point-in-scale rates.
An exchange is a new policy replacing an existing policy where the new policy is
not fully underwritten.
B. Increases or Decreases
1. If the policy face amount of a risk reinsured automatically under this
Agreement increases and:
a. The increase is subject to new underwriting evidence, then the
provisions of Article II, Section A, shall apply to the increase in
reinsurance.
b. The increase is not subject to new underwriting evidence, the
Reinsurer will accept the increase in reinsurance at point-in-scale
rates but not to exceed the Automatic Binding Limit.
2. If the policy face amount increases, the Ceding Company's retention will be
filled first, and then any remaining risk of the increase will be ceded to the
Reinsurer as of the effective date or the increase. If the policy face amount is
reduced, the reinsurance will be reduced first, thereby maintaining the Ceding
Company's retention.
3. In the event of a reduction in the face amount of a policy, which was ceded
facultatively, the Reinsurer's percentage of the reduced face amount shall be
the same percentage as set at issue.
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4. A request to increase the face amount of policies that are reinsured on a
facultative basis will be submitted to the Reinsurer for acceptance.
C. Reduction in Retained Coverage
If any portion of the aggregate insurance retained by the Ceding Company on a
risk reduces or terminates, the Ceding Company will recalculate its retention on
any remaining risk(s) inforce with the intent of holding the appropriate
retention under each applicable reinsurance agreement.
The retention limit, which was in effect at the time that each remaining risk
was issued, will be used. The Ceding Company will not be required to retain an
amount in excess of its regular retention limit for the age, mortality rating,
and risk classification at the time of issue for any policy. The Ceding Company
will first recalculate the retention on the policy(ies) having the same
mortality rating as the terminated policy(ies). Order of recalculation will
secondarily be determined by policy effective date, oldest first.
D. Multiple Reinsurers
If a risk is shared by more than one reinsurer, the Reinsurer's percentage of
any increased or reduced reinsurance will be the same as its initial percentage
of the reinsurance for that risk.
E. Termination
If the policy for a risk reinsured under this Agreement is terminated, the
reinsurance for the risk involved will be terminated on the effective date of
termination.
F. Mortality Rating
On Facultative Reinsurance, if the Ceding Company wishes to reduce the mortality
rating, this reduction will be subject to the Reinsurer's approval. On Automatic
Reinsurance, if the Ceding Company wishes to reduce the mortality rating, the
Reinsurer will accept this reduction.
ARTICLE IX
INCREASE IN RETENTION
A. If the Ceding Company should increase the retention limits as listed in
Exhibits II and III, prompt written notice of the increase must be given to the
Reinsurer.
B. In the event of an increase in retention, the Ceding Company will have the
option of recapturing the reinsurance up to the increased retention under this
Agreement. The Ceding Company may exercise its option to recapture by giving
written notice to the Reinsurer within ninety (90) days after the effective date
of the increase.
C. If the Ceding Company exercises its option to recapture, then:
1. The Ceding Company must reduce the reinsurance on each risk on which the
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Ceding Company retained the maximum retention limit for the age and mortality
rating that was in effect at the time the reinsurance was ceded to the
Reinsurer.
2. No recapture will be made to reinsurance on a risk if (a) the Ceding Company
retained a special retention limit less than the maximum retention limit for the
age and mortality rating in effect at the time the reinsurance was ceded to the
Reinsurer, or if (b) the Ceding Company did not retain insurance on the risk.
3. The Ceding Company must increase its total amount of insurance on a risk up
to the new retention limit by reducing the reinsurance. If a risk is shared by
more than one reinsurer, the Reinsurer's percentage of the reduced reinsurance
will be the same as the initial reinsurance on the risk.
4. The reduction in reinsurance will become effective on the next annual
premium anniversary after the individual policy has been inforce for at least
ten (10) years.
5. If more than one policy per life is eligible for recapture, then the
eligible policies may be recaptured beginning with the policy with the earliest
issue date and continuing in chronological order according to the remaining
policies' issue dates.
ARTICLE X
REINSTATEMENT
If an insurance policy lapses for nonpayment of premium and is reinstated under
the Ceding Company's terms and rules, the Reinsurer will reinstate the
reinsurance as follows:
A. Automatic Cases
The Ceding Company must pay the Reinsurer all back reinsurance premiums in the
same manner as the Ceding Company received insurance charges under the policy.
When the policy is reinstated by the Ceding Company, the reinsurance will be
automatically reinstated.
B. Facultative Cases
If the Ceding Company requires reinstatement evidence of insurability, the
Ceding Company will submit it to the Reinsurer for approval. In such cases, the
Reinsurer's approval is required for the reinsurance to be reinstated. Upon the
Reinsurer's approval, the Ceding Company must pay the Reinsurer all back
reinsurance premiums in the same manner as the Ceding Company received insurance
premium under the policy.
C. Nonforfeiture Reinsurance Termination
If the Ceding Company has been requested to reinstate a policy that was
reinsured while on extended term or reduced paid-up, then such reinsurance will
terminate and either automatic or facultative reinstatement procedures will be
followed as outlined above in this Article.
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ARTICLE XI
EXPENSES
The Ceding Company must pay the expense of all medical examinations, inspection
fees and other charges in connection with the issuance of the insurance.
ARTICLE XII
CLAIMS
A. Liability
If the Ceding Company is liable for insurance benefits on a policy reinsured
under this Agreement, the Reinsurer shall be liable for its portion of the
reinsurance on that policy, as described in Schedule B. All reinsurance claim
settlements will be subject to the terms and conditions of the particular
contract statutory requirements under which the Ceding Company is liable.
B. Notification
When the Ceding Company is advised of a claim, the Reinsurer must be notified
promptly.
C. Claim Payment
1. Automatic Reinsurance on a Risk
If a claim is made under insurance reinsured under this Agreement, the Reinsurer
will abide by the issue as it is settled by the Ceding Company. Copies of proofs
or other written matters relating to any claim reimbursements under this
Agreement shall be furnished to the Reinsurer upon written request. The
Reinsurer will pay the Ceding Company the reinsurance proceeds within thirty
(30) days of final notification of the Ceding Company making the settlement of
the policy proceeds. The Ceding Company will deliver a copy of the proof of
death, check copy or proof of payment, and the claimant's statement to the
Reinsurer.
2. Facultative Reinsurance on a Risk
If a claim is made on a risk reinsured facultatively under this Agreement, the
Ceding Company shall submit to the Reinsurer all relevant and/or requested
documents and papers related to the claim along with the Ceding Company's
recommendation. The Ceding Company shall then wait five (5) days from the date
of mailing during which time the Reinsurer shall have the opportunity to advise
the Ceding Company of its consent or disagreement with the recommendation. In
the event the Reinsurer does not contact the Ceding Company within the five-day
(5) period, the Reinsurer shall be deemed to have approved the recommendation
and the Ceding Company shall be authorized to act accordingly. The Reinsurer
will pay the Ceding Company the reinsurance proceeds when the Ceding Company
makes the settlement of the policy proceeds and delivers proof of payment to the
Reinsurer.
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3. Payment of Reinsurance Proceeds
Payment of life reinsurance proceeds will be made in a single sum regardless of
the Ceding Company's mode of settlement with the payee.
4. Recapture
If the Reinsurer is delinquent, ninety (90) days past due, on an undisputed net
amount due to the Ceding Company, the Ceding Company will have the right to
offset such amounts from any amounts due the Reinsurer in accordance with
Article XVII. To the extent there is an insufficient balance from which to
offset such amounts, the Ceding Company has the right to recapture, provided the
Ceding Company has given the Reinsurer ninety (90) days written notice of its
intent to recapture and the Reinsurer has failed to pay the net amount due by
the end of the ninety (90) day notice period.
Regardless of the recapture, the Reinsurer will continue to be liable to the
Ceding Company for all its obligations under the Agreement up to the effective
date of the recapture. Such obligations shall include, but shall not be limited
to reinsurance claims and claim expenses incurred before the effective date of
the recapture, any net reinsurance premium balances due the Ceding Company for
periods prior to the effective date of the recapture and any unearned
reinsurance premium.
The rights of the Ceding Company under this provision shall not be used solely
to avoid the provisions regarding recapture in Article IX.
5. Overdue Reinsurance Proceeds
The Ceding Company reserves the right to charge interest on reinsurance proceeds
due. The interest will be calculated according to the 90 Day Federal Government
Treasury rate as first published in the Wall Street Journal in the month
following the end of the billing period plus 50 basis points. The method of
calculation will be simple interest "Bankers' Rule" (or 360 day year).
D. Contested Claims
The Ceding Company must promptly notify the Reinsurer of any intent to contest a
claim reinsured under this Agreement or to assert defenses, and if the Ceding
Company's contest of such insurance results in the increase or reduction of
liability, the Reinsurer will share in this increase or reduction. The
Reinsurer's share of the increase or decrease shall be proportional to their
share of the Total Net Amount at Risk, as defined in Schedule B, on the date of
the death of the insured.
If the Reinsurer should decline to participate in the contest or assertion of
defenses, the Reinsurer will then release all of its liability by paying the
Ceding Company the full amount of reinsurance and not sharing in any subsequent
increase or reduction in liability.
The Ceding Company shall operate in good faith and adjudicate claims to policies
reinsured under this agreement as if there were not reinsurance. The Ceding
Company's decision to pay a claim in accordance with their contractual liability
is binding on the Reinsurer.
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E. Misstatement of Age or Sex
If the amount of insurance provided by the policy or policies reinsured under
this Agreement is increased or reduced because of misstatement of age or sex
established after the death of the insured, the Reinsurer will share with the
Ceding Company in this increase of reduction
F. Routine Expenses
The Ceding Company will pay the routine expenses incurred in connection with
settling claims. These expenses may include compensation of agents and employees
and the cost of routine investigations.
G. Non-Routine Expenses
The Reinsurer will share with the Ceding Company all expenses that are not
routine. Expenses that are not routine are those directly incurred in connection
with the contest or the possibility of a contest of a claim or the assertion of
defenses, including legal expenses. The expenses will be shared in proportion to
the Total Net Amount at Risk, as defined in Schedule B, for the Ceding Company
and the Reinsurer. However, if the Reinsurer has released the liability under
Section D of this Article, the Reinsurer will not share in any expenses incurred
after the date of the Reinsurer's release.
H. Return of Premium for Misrepresentations and Suicides
If a misrepresentation on an application or a death of an insured risk by
suicide results in the Ceding Company returning the policy premiums to the
policy owner rather than paying the policy benefits, the Reinsurer will refund
all of the reinsurance premiums it received on that policy to the Ceding
Company. This refund given by the Reinsurer will be in lieu of all other
reinsurance benefits payable on that policy under this Agreement.
I. Contestable Period
If the Ceding Company is notified of the first or second death of an insured
during the contestable period, the Ceding Company will investigate the case if,
at original underwriting that insured was determined to be an insurable risk.
ARTICLE XIII
EXTRA-CONTRACTUAL DAMAGES
In no event will the Reinsurer have any liability for any extra-contractual
damages, which are awarded against the Ceding Company as a result of acts,
omissions, or course of conduct committed solely by the Ceding Company with no
involvement of the Reinsurer in connection with the insurance reinsured under
this Agreement.
The Reinsurer will, however, pay its share of punitive and/or compensatory
damages and/or statutory penalties awarded against the Ceding Company in
connection with benefits reinsured under this Agreement if the Reinsurer agreed,
in advance and in writing, to the act or course of conduct of the Ceding Company
that resulted in the assessment of such damages. The
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Reinsurer shall also have five (5) working days to respond to any request for
concurrence in a proposed course of conduct.
The Reinsurer does recognize that circumstances may arise under which the
Reinsurer, in equity, should share, to the extent permitted by law, in paying
certain assessed damages. Such circumstances are difficult to define in advance,
but by example may involve those situations in which the Reinsurer was an active
party in the act, omission, or course of conduct that ultimately results in the
assessment of such damages. The extent of such sharing is dependent on good
faith assessment of culpability in each case, but all factors being equal, the
division of any such assessment would be in the proportion of Total Net Amount
at Risk (as defined in Schedule B) accepted by each party for the plan of
insurance involved.
ARTICLE XIV
INSPECTION OF RECORDS
Each party or their authorized representatives will have the right, at any
reasonable time and upon reasonable notice, to inspect the other party's books
and documents that relate to reinsurance under this Agreement.
ARTICLE XV
DAC TAX
SECTION 1.848-2(g)(8) ELECTION
A. The Ceding Company and the Reinsurer jointly agree to the DAC Tax Election
pursuant to Section 1.848-2(g)(8) of the Income Tax Regulations (the "Treasury
Regulations") issued under Section 848 of the Internal Revenue Code of 1986, as
amended (the "Code") whereby:
(i) The party with the net positive consideration for this Agreement for
each taxable year will capitalize specified policy acquisition
expenses with respect to this Agreement without regard to the
general deductions limitation of Code section 848(c)(1); and
(ii) Both parties agree to exchange information pertaining to the amount
of net consideration under this Agreement each year to ensure
consistency.
B. As used in this Article XV, the terms "net positive consideration",
"specified policy acquisition expenses" and "general deductions limitation" are
defined by reference to Treasury Regulations Section 1.848-2 and Code Section
848 as of March 1, 2004.
C. The method and timing of the exchange of this information shall be as
follows:
(i) The Ceding Company shall submit a schedule to the Reinsurer by May 1
of each year of its calculation of the net consideration for the
preceding calendar year.
(ii) The Reinsurer shall, in turn, complete the schedule by indicating
acceptance of the Ceding Company's calculation of net consideration
or shall note in writing any discrepancies. The Reinsurer shall
return the completed schedule to the Ceding Company by June 1 of
each year.
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(iii) If there are any discrepancies between the Ceding Company's and the
Reinsurer's calculation of net consideration, the parties shall act
in good faith to resolve these discrepancies in a manner that is
acceptable to both parties by July 1 of each year.
(iv) Each party shall attach the final schedule to their respective U.S.
federal income tax returns for each taxable year in Which
consideration is transferred under this Agreement. The schedule
shall identify this Agreement and restate the election described in
this Article XV and shall be signed by both parties.
D. This DAC Tax Election shall be effective on the effective date of this
Agreement and shall be effective for all years for which this Agreement remains
in effect.
E. The Ceding Company and the Reinsurer each represent and warrant that they
are subject to U.S. taxation under either the provisions of Subchapter L of
Chapter 1 or Subpart F of Part III of Subchapter N of Chapter 1 of the Code.
F. Should the Reinsurer breach the representation and warranty of tax status
set forth in this Article of this Agreement, the Reinsurer agrees to indemnify
and hold the Ceding Company, its directors, officers, employees, agents, and
shareholders harmless from any liability and all liability, loss, damages,
fines, penalties, interest, and reasonable attorney's fees, which the Ceding
Company, its directors, officers, employees, agents, and shareholders may
sustain by reason of such breach.
ARTICLE XVI
INSOLVENCY
A. Insolvency of the Reinsurer
If the Reinsurer becomes insolvent as determined by the Regulatory Agency
responsible for such determination, amounts due the Reinsurer will be paid net
of the terms of this Agreement and directly to the liquidator, receiver, or
statutory successor without decrease. In addition, upon the Reinsurer's
insolvency, the Ceding Company may cancel this Agreement for future new business
as described in Article XIX.
In the event that the Reinsurer is deemed insolvent, the Ceding Company may at
its own option within thirty (30) days of the occurrence of this event, give
written notice to the Reinsurer of its intention to recapture reinsurance and
reserves under this Agreement.
B. Insolvency of the Ceding Company
If the Ceding Company should become insolvent, as determined by the Regulatory
Agency responsible for such determination, all reinsurance under this Agreement
covering risks ceded by the Ceding Company will be payable by the Reinsurer
directly to the Ceding Company's liquidator, receiver or statutory successor, on
the basis of the liability of the Ceding Company under the policy or policies
reinsured and without diminution because of the insolvency of the Ceding
Company. However, in the event of such insolvency, the liquidator, receiver, or
statutory successor will give written notice of a pending claim against the
Ceding Company on the reinsured policy. It will do so within
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a reasonable time after the claim is filed in the insolvency proceedings. During
the pendency of such a claim, the Reinsurer may investigate the claim and may,
at its own expense, interpose any defense or defenses, which it may deem
available to the insolvent Ceding Company, its liquidator, receiver, or
statutory successor, in the proceedings where the claim is to be adjudicated.
The expense thus incurred by the Reinsurer will be chargeable against the Ceding
Company, subject to court approval, as part of the expense of liquidation to the
extent of a proportionate share of the benefit, which may accrue to the
insolvent Ceding Company solely as a result of the defense undertaken by the
Reinsurer.
Where two or more reinsurers are involved in the same claim and a majority in
interest elects to interpose defense to the claim, the expense will be
apportioned in accord with the terms of the reinsurance agreement as though the
expense had been incurred by the insolvent Ceding Company.
ARTICLE XVII
OFFSET
Any undisputed debts or credits, matured or unmatured, liquidated or
unliquidated, regardless of when they arose or were incurred, in favor of or
against either the Ceding Company or the Reinsurer with respect to this
Agreement, shall be offset, and only the balance shall be allowed or paid. In
the event the Ceding Company becomes insolvent, offsets shall be allowed in
accordance with applicable law.
ARTICLE XVIII
ARBITRATION
The Ceding Company and the Reinsurer mutually understand and agree that the
wording and interpretation of this Agreement is based on the usual customs and
practice of the insurance and reinsurance industry. While both the Ceding
Company and the Reinsurer agree to act in good faith in its dealings with each
other, it is understood and recognized that situations may arise in which they
cannot reach an agreement.
In the event that any dispute cannot be resolved to mutual satisfaction, the
dispute will first be subject to good-faith negotiation as described below in an
attempt to resolve the dispute without the need to institute formal arbitration
proceedings.
Within ten (10) days after one of the parties has given the other the first
written notification of the specific dispute, each of the parties will appoint a
designated officer to attempt to resolve the dispute. The officers will meet at
a mutually agreeable location as early as possible and as often as necessary, in
order to gather and furnish the other with all appropriate and relevant
information concerning the dispute. The officers will discuss the problem and
will negotiate in good faith without the necessity of any formal arbitration
proceedings. During the negotiation process, all reasonable requests made by one
officer to the other for information will be honored. The designated officers
will decide the specific format for such discussions.
If the officers cannot resolve the dispute within thirty (30) days of their
first meeting, both parties agree that they will submit the dispute to formal
arbitration. However, the parties may agree in
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writing to extend the negotiation period for an additional thirty (30) days.
No later than fifteen (15) days after the final negotiation meeting, the
officers taking part in the negotiation will give both the Ceding Company and
the Reinsurer written confirmation that they are unable to resolve the dispute
and that they recommend establishment of formal arbitration.
An arbitration panel consisting of three (3) past or present officers of life
insurance or life reinsurance companies not affiliated with either of the
parties in any way will settle the dispute. Each party will appoint one
arbitrator and the two will select a third. If the two arbitrators cannot agree
on the choice of a third within thirty (30) days following their appointment,
each arbitrator shall nominate three candidates within ten (10) days thereafter,
two of whom the other shall decline, and the decision shall be made by drawing
lots.
The Ceding Company and the Reinsurer shall bear the expense of its own
arbitrator and shall jointly bear with the other the expense of the third
arbitrator. In the absence of a decision to the contrary by the arbitration
panel, the Ceding Company and the Reinsurer shall jointly share in all other
costs of the arbitration.
The arbitration proceedings will be conducted according to the Commercial
Arbitration Rules of XXXXX-US, which are in effect at the time the arbitration
begins.
The arbitration will take place in Hartford, Connecticut unless the parties
mutually agree otherwise.
Within sixty (60) days after the beginning of the arbitration proceedings the
arbitrators will issue a written decision on the dispute and a statement of any
award to be paid as a result. The decision will be based on the terms and
conditions of this Agreement as well as the usual customs and practices of the
insurance and reinsurance industry, rather than on strict interpretation of the
law. The decision will be final and binding on both the Ceding Company and the
Reinsurer and there will be no further appeal.
The parties may mutually agree to extend any of the negotiation or arbitration
periods shown in this Article.
Unless otherwise decided by the arbitrators, the parties will share in their
proportion of all expenses resulting from the arbitration, including the fees
and expenses for the arbitrators, except that each party will be responsible for
its own attorneys' fees.
ARTICLE XIX
TERMINATION
A. The Ceding Company and the Reinsurer may terminate this Agreement as it
applies to the new business of each by giving ninety (90) days' written notice
of termination. The day the notice is deposited in the mail addressed to the
Home Office, or to an Officer of each party, will be the first, day of the
ninety-day (90) period. In addition, this Agreement may be terminated
immediately for the acceptance of new reinsurance by either party if one of the
parties becomes insolvent as described in Article XVI.
B. During the ninety-day (90) period, this Agreement will continue to be in
force between the terminating parties.
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C. After termination, the terminating parties shall remain liable under the
terms of this Agreement for all Automatic and Facultative Reinsurance that
becomes effective prior to termination of this Agreement. After termination, the
Reinsurer shall be liable for all Automatic and Facultative Reinsurance that has
an application date on or before the effective date of the termination.
ARTICLE XX
GENERAL PROVISIONS
A. Entire Contract
This Agreement with any attached Schedules and Exhibits shall constitute the
entire contract between the parties with respect to the business being reinsured
hereunder and there are no understandings between the parties other than as
expressed herein.
B. Modifications
Any modification or change to the provisions of this Agreement shall be null and
void unless set forth in a written amendment to the Agreement which is signed by
all parties to the amendment.
C. Severability
In the event that any provision or term of this Agreement shall be held by any
court, arbitrator, or administrative agency to be invalid, illegal or
unenforceable, all of the other terms and provisions shall remain in full force
and effect to the extent that their continuance is practicable and consistent
with the original intent of the parties. In addition, if any provision or term
is held invalid, illegal or unenforceable, the parties will attempt in good
faith to renegotiate the Agreement to carry out the original intent of the
parties.
D. Survival
All provisions of this Agreement shall survive its termination to the extent
necessary to carry out the purposes of this Agreement or to ascertain and
enforce the parties' rights or obligations hereunder existing at the time of
termination.
E. Non-Waiver
No waiver by either party of any violation or default by the other party in the
performance of any promise, term or condition of this Agreement shall be
construed to be a waiver by such party of any other or subsequent default in
performance of the same or any other promise, term or condition of this
Agreement. No prior transactions or dealings between the parties shall be deemed
to establish any custom or usage waiving or modifying any provision hereof. The
failure of either party to enforce any part of this Agreement shall not
constitute a waiver by such party of its right to do so, nor shall it be deemed
to be an act of ratification or consent.
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F. Governing Law
This Agreement shall be governed by the laws of the state of Connecticut.
G. Assignment
Neither party may assign any of its rights, duties or obligations under this
Agreement without the prior written consent of the other party.
H. Counterparts
This Agreement may be executed in one or more counterparts, each of which shall
constitute an original.
I. Force Majeure
Neither party shall be liable for any delay or non-performance of any covenant
contained herein nor shall any such delay or non-performance constitute a
default hereunder, or give rise to any liability for damages if such delay or
non-performance is caused by an event of "force majeure." As used herein, the
term "Force Majeure," means an event, explosion, action of the elements, strike
or other labor relations problem, restriction or restraint imposed by law, rule
or regulation of any public authority, whether federal, state or local, and
whether civil or military, act of any military authority, interruption of
transportation facilities or any other cause which is beyond the reasonable
control of such party and which by the exercise of reasonable diligence such
party is unable to prevent. The existence of any event of Force Majeure shall
extend the term of performance on the part of such party to complete performance
in the exercise of reasonable diligence after the event of Force Majeure has
been removed.
J. No Limitation on Disclosure of Tax Treatment
Notwithstanding anything herein to the contrary, each party to this Agreement
(and each employee, representative, or other agent of such party) may consult
any tax advisor regarding the U.S. federal income tax treatment or tax structure
of the transaction (the "Tax Transaction"), and disclose to any and all persons,
without limitation of any kind, the Tax Treatment and all materials of any kind
(including opinions or other tax analyses) that are provided to such party
relating to the Tax Treatment. The permission to disclose the Tax Treatment is
limited to any facts relevant to the U.S. federal income Tax Treatment and does
not include information relating to the identity of the parties.
ARTICLE XXI
CONFIDENTIALITY
As used herein, "Confidential Information" means all of our confidential,
proprietary, or trade secret information, including, but not limited to, all
information on the Ceding Company's customers and claimants and other
information the Ceding Company discloses to the Reinsurer. The term
"Confidential Information" does not include any information which (i) at the
time of disclosure or thereafter is generally available to and known by the
public other than by way of a wrongful disclosure by a party or its
Representatives; (ii) was available on a non-confidential basis from a source
other than the parties hereto or their Representatives, provided that such
source is not and was not bound by a confidentiality agreement with a party
hereto; or (iii) was
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independently developed without violating any obligations under this Agreement
and without the use of any Confidential Information.
The Reinsurer shall maintain the confidentiality of the Confidential
Information, shall use it only for purposes for which it was disclosed. Except
as required by law, Reinsurer will not disclose Information to third parties
without the consent of Ceding Company; however, Ceding Company agrees that
Reinsurer may, in the normal course of its business, share Information with
other insurance and reinsurance companies ("Retrocessionnaires") to the extent
necessary to retrocede risk to the Retrocessionnaires, so long as the
Retrocessionnaires have agreed to maintain the confidentiality of the
Information on terms substantially similar to this Agreement.
ARTICLE XXII
NOTICES AND COMMUNICATIONS
All notices and other communications hereunder shall be in writing and shall be
either (a) personally delivered, (b) delivered by messenger, (c) sent by a
nationally recognized overnight courier, (d) sent by fully completed and
confirmed facsimile transmission or (e) deposited in the mail, registered or
certified, with postage prepaid, return receipt requested, as follows:
If to the Ceding Company: If to the Reinsurer:
Individual Life Director of Vice President, Sales
Reinsurance
Hartford Life RGA Reinsurance Company
000 Xxxxxxxxx Xxxxxx 0000 Xxxxxxxxxx Xxxxx Xxxxxxx
Xxxxxxxx, XX 00000 Xxxxxxxxxxxx, XX 00000-6039
Facsimile: (000) 000-0000 Facsimile: (000) 000-0000
Copy (which shall not constitute Copy (which shall not constitute
notice) to: notice) to:
Chief Actuary
Hartford Life
000 Xxxxxxxxx Xxxxxx
Xxxxxxxx, XX 00000
Facsimile: (000) 000-0000
General Counsel General Counsel
Hartford Life RGA Reinsurance Company
000 Xxxxxxxxx Xxxxxx 0000 Xxxxxxxxxx Xxxxx Xxxxxxx
Xxxxxxxx, XX 00000 Xxxxxxxxxxxx, XX 00000-6039
Facsimile: (000) 000-0000 Facsimile:
Or such other address or fax number as any party may request by notice given
under this section. The foregoing shall not preclude the effectiveness of actual
written notice given to a party at any address or by any means.
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ARTICLE XXIII
EFFECTIVE DATE
The provisions of this Agreement shall be effective with respect to policies
issued on or after March 1, 2004.
ARTICLE XXIV
EXECUTION
RGA REINSURANCE COMPANY
By: /s/ [ILLEGIBLE] Attest: /s/ [ILLEGIBLE]
------------------------------ ------------------------------
Title: Sales Vice President Title: Vice President & Actuary
Date: 3-31-05 Date: 3/31/2005
HARTFORD LIFE INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx By: /s/ Xxxxxxx X. Xxxxxx
------------------------------ ------------------------------
Xxxxxx X. Xxxxxxxx, FSA, XXXX Xxxxxxx X. Xxxxxx, FSA, MAAA
Assistant Vice President Vice President and Actuary
Individual Life Product
Management
Date: 3/31/2005 Date: 3/31/2005
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SCHEDULE A
PLANS COVERED UNDER THIS AGREEMENT
TYPE OF BUSINESS Fully underwritten Last Survivor Plans Single Life Term
under the "Xxxxx" Program described in Exhibit IV
PLANS OF INSURANCE GENERAL FORM NO'S.
-------------------------------------------------------------------------------------------------
Last Survivor Universal Life HL-14393, HL-A14407,XXX-1011
Last Survivor Variable Life HL-14623, XXX-1020
Last Survivor Variable Life II LA-1151(98), HL-15441(98)(NY)
Last Survivor SPVL HL-LSPVL97, XXX-LSPVL97
RIDERS
------------------------------------------------------------------------------------------------------
Four Year Term Xxxxx XX-12933, HL-A12989, XXX-1080
Estate Protection Xxxxx XX-14627, XXX-1023
Twenty-four Month Exchange Xxxxx XX-12963, XXX-1013
Single Life YRT Life Insurance Xxxxx XX-14626, XXX-1021, LA-1150(98)
Guaranteed COI Benefit Rider LA-1174(00)
Last Survivor Term Xxxxx XX-14394
Estate Tax Repeal Rider LA-1194(02), HL-15842(02), HL-15843(02)
Last Survivor Exchange Option Rider (24) LA-10022, LA-1013, HL-14395, HL-14624
Estate Tax Repeal Benefit Rider LA-1168(00), LA-1166(00), HL-11503(00)
Mortality and Expense Risk Rates Rider LA-1198(02),HL-1584(02)
DESCRIPTIONS
RIDERS WHERE ADDITIONAL PREMIUM IS DUE TO THE REINSURER:
Four Year Term Rider: This rider will pay the term insurance benefit upon
receipt of due proof of the Last Surviving Insured's death while the policy and
this rider are in force.
Estate Protection Rider: This rider will pay the term insurance benefit upon
receipt of due proof of the Last Surviving Insured's death while the policy and
this rider are in force.
Single Life YRT Life Insurance Rider: This rider will provide additional term
insurance coverage on the life of the named Insured.
Last Survivor Term Rider: This rider provides supplemental last survivor term
insurance coverage on the base insureds.
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SCHEDULE A
PLANS COVERED UNDER THIS AGREEMENT
RIDERS THAT ALTER THE POLICY AND IN WHICH NO ADDITIONAL PREMIUM IS PAID TO THE
REINSURER. IF A POLICY HAS THIS RIDER IT IS STILL COVERED UNDER THE AGREEMENT:
Twenty-four Month Exchange Rider: This rider allows the last survivor policy to
be exchanged for two individual policies on the life of each of the Insureds,
subject to the conditions stated in this rider. For example, this rider can be
used in case of divorce.
Estate Tax Repeal Rider: The purpose of this rider is to allow a policy to
surrender without surrender charges if the Federal Estate Tax is not in effect
in 2011. If a reinsured policy has this rider, the policy is still covered under
this Agreement, and there is no additional premium paid to the Reinsurer
specifically for the Estate Tax Rider.
Guaranteed COI Benefit Rider: This rider provides guaranteed cost of insurance
rates for the first 10 policy years. On each policy anniversary, we declare a
cost of insurance rate for a single policy year. This policy year is the policy
year 9 years from the then current policy anniversary. Thus the rider provides
that on any policy anniversary, cost of insurance rates over the next 10 years
will not exceed those provided by the rider. This rider is currently available
in only a few states and on variable life policy forms where the face amount is
at least thirty million dollars.
Last Survivor Exchange Option Rider (24): This rider allows the last survivor
policy to be exchanged for two individual policies on the life of each of the
Insureds, subject to the conditions stated in this rider. For example, this
rider can be used in case of divorce.
Estate Tax Repeal Benefit Rider: This rider will pay the account value less
indebtedness if the Federal Estate Tax Law is fully repealed by December 31,
2010 and we receive a request for this benefit amount from the insured.
Mortality and Expense Risk Rider: This rider guarantees that the mortality and
expense risk rate will be zero for years greater than and equal to 21.
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SCHEDULE B
BASIS OF REINSURANCE
REINSURANCE POOL SHARE:
[Redacted]
LEAD REINSURER:
[Redacted]
AUTOMATIC REINSURANCE
The Ceding Company will retain its available retention on each risk as
referenced in Exhibits II and III. The Reinsurance Pool Share of the remainder
will be ceded to the Reinsurer for reinsurance.
FACULTATIVE REINSURANCE
The Reinsurer will accept X% (as determined at issue) of the risk.
NET AMOUNT AT RISK DEFINITION:
[Redacted]
MINIMUM FACULTATIVE REINSURANCE CESSION:
[Redacted]
FACULTATIVE OBLIGATORY:
The Reinsurer shall provide the following Facultative Obligatory capacity:
[Redacted]
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EXHIBIT I
REINSURANCE PREMIUM CALCULATION
1. REINSURANCE PREMIUM
ANNUAL YRT REINSURANCE PREMIUM
[Redacted]
2. PREMIUM TAX
Premium tax will not be reimbursed.
3. RIDERS
Term riders and other riders providing additional or increasing coverage will
use the same methods and YRT rates as the base plan. For single life additional
coverage riders the Reinsurance Premium calculation will be as described in
paragraphs one and three of Reinsurance Premium above.
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EXHIBIT II
RETENTION, BINDING, AND ISSUE LIMITS
FOR LAST SURVIVOR TREATY
TOTAL POOL LIMITS
[Redacted]
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EXHIBIT III
TOTAL POOL LIMITS
LAST SURVIVOR LIMITS AND RETENTION
[Redacted]
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EXHIBIT IV
XXXXX PROGRAM
With this program, two single life term policies may be issued in anticipation
of conversion to a last survivor policy. Each term policy will be issued for
half the face amount of the anticipated last survivor policy. Conversion to a
last survivor policy will not be allowed beyond two years after the latter term
policy date.
When term policies under this "Xxxxx Program" that are issued after January 1,
2002 and during the time when this Last Survivor Excess YRT Pool is open to new
business are converted to a last survivor policy, that policy will be reinsured
as a new policy under the Last Survivor Excess YRT Pool effective January 1,
2002. The policy date of the last survivor policy will be the conversion date.
The contestable and suicide period will be measured from the issue date of the
term policies.
Both lives will be underwritten for the full amount of the last survivor policy
at the time of issue of the term policies. No uninsurable lives will be
accepted. There will be no Facultative Reinsurance. The reinsurance rates on the
last survivor policy will be the currently effective rates for the Last Survivor
Excess YRT Pool and will be attained age, beginning with the first duration,
based on the ages at issue of the last survivor policy.
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EXHIBIT V
DIRECTOR'S CHARITABLE AWARD PROGRAM (DCAP)
The AYCO Services Agency, L.P. is a national financial planning firm. Their
Director's Charitable Award Program allows a corporation to fund substantial
charitable contributions on behalf of its board members through the purchase of
life insurance.
The Ceding Company has a special last survivor underwriting program for DCAP, as
follows:
- Guaranteed-to-Issue
- Pairings of directors into last survivor policies:
- The initial pairings are at application and are generally by similar age.
- An odd number of lives are usually handled by pairing three lives (A, B, and
C) into three last survivor contracts (AB, BC, and CA), with each of the
three contracts for half the desired last survivor face amount.
- After underwriting, the Ceding Company reserves the right to re-pair the
lives such that two unhealthy directors are not paired on one policy.
- Pairings might also be restructured to achieve a desired premium.
- More coverage may be purchased on healthy lives to achieve a desired
premium.
- The Ceding Company reserves the right to approve all pairings.
- Less invasive underwriting requirements:
- No inspection reports (a short biography on each Director from the
company's personnel department may be requested).
- The Ceding Company may accept a copy of a recent (within 12 months),
comprehensive physical in lieu of a paramedical or medical exam.
- APS's are ordered by AYCO.
- The Ceding Company reserves the right to order additional tests or
examinations if necessary to properly assess the risk.
- The DCAP program is totally non-voluntary and is for Directors only.
- Treatment of declinable lives or deaths during the underwriting process:
- If a Director is found to be declinable under the Ceding Company's
normal underwriting guidelines, or dies during the underwriting
process, he or she will be treated as an uninsurable and paired with
a healthy life in a last survivor contract.
- Special binding rules:
- Binding occurs at receipt of the census including pairings, the
applications, and 10% of the estimated annual premium for the last
survivor contracts.
- Binding amount is up to the applied-for last survivor policy face
amount.
- Binding is for last survivor policies (payment on second death,
pairings at the Ceding Company's discretion).
- The maximum face amount on a last survivor policy under this program is $4.2
million ($2.1 million per director). These amounts may be reduced if the
Ceding Company has prior in-force coverage on a risk.
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EXHIBIT V
DIRECTOR'S CHARITABLE AWARD PROGRAM (DCAP)
- Addition of a Director after case inception:
- If more than one Director is being added, last survivor coverage will
be available as described above.
- If one Director ("X") is being added, a term contract of up to $2.1
million may be applied for. Underwriting requirements will be the
Ceding Company's regular age and amount requirements. The Ceding
Company reserves the right to decline coverage to risks outside of
its normal rating parameters. The Ceding Company's normal temporary
insurance coverage will apply. When another Director ("Y")
subsequently is added, X and Y may be combined into a last survivor
contract of twice the face of X's term policy, with X converting his
term contract and Y being subject to the DCAP underwriting
requirements and binding requirements as stated above.
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EXHIBIT VI
Annual per 1000 Yearly Renewable Term reinsurance rates are attached.
PRODUCTS USING MULTI-CLASS RATE TABLES:
Last Survivor Variable Life
Last Survivor Variable Life II
PRODUCTS USING UNI-CLASS RATE TABLES:
Last Survivor Universal Life
[Redacted]
Last Survivor SPVL
[Redacted]
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AMENDMENT 1
EFFECTIVE DECEMBER 1, 2005
TO THE
AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM
REINSURANCE AGREEMENT
EFFECTIVE MARCH 1, 2004
BETWEEN
HARTFORD LIFE INSURANCE COMPANY
("CEDING COMPANY")
AND
RGA REINSURANCE COMPANY
("REINSURER")
RECITALS
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend; or modify Exhibit
II and Exhibit III under the Agreement.
NOW, THEREFORE for good and valuable considerations, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
AMENDMENT
The parties hereby agree to amend or modify the Agreement, by amending Exhibit
II and Exhibit III to reflect the change in the maximum Retention Limit
The parties agree to remove Exhibit II and Exhibit III, in their entirety and
replace them with the attached Exhibit II and Exhibit III, effective December 1,
2005.
Except as herein amended, all other terms and conditions of this Agreement shall
remain unchanged.
Last Survivor 01/01/2002 -- Amendment 1
Between HLIC and RGA
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, hereby executed this Amendment in duplicate on the dates
indicated below, with an effective date of December 1, 2005.
RGA REINSURANCE COMPANY
By: /s/ Xxxxx X. Xxxxxx Attest: /s/ X. Xxxxxxx
---------------------------- ----------------------------
Name: Xxxxx X. Xxxxxx Name: X. Xxxxxxx
Title: Sales Vice President Title: Sales Vice President
Date: 1/31/06 Date: 1-31-06
HARTFORD LIFE INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxxxxxx X. Xxxxxx
---------------------------- ----------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxxxxxx X. Xxxxxx
Title: Assistant Vice President, Title: Assistant Vice President,
Individual Life Product Individual Life Product
Development Development
Date: 10/28/2005 Date: 10/28/05
Last Survivor 01/01/2002 -- Amendment 1
Between HLIC and RGA
2
EXHIBIT II
RETENTION, BINDING, AND ISSUE LIMITS
FOR LAST SURVIVOR TREATY
TOTAL POOL LIMITS
EFFECTIVE DECEMBER 1, 2005
[Redacted]
Last Survivor 01/01/2002 -- Amendment 1
Between HLIC and RGA
3
EXHIBIT III
EFFECTIVE DECEMBER 1, 2005
LAST SURVIVOR LIMITS AND RETENTION
[Redacted]
Last Survivor 01/01/2002 -- Amendment 1
Between HLIC and RGA
4
AMENDMENT 2
EFFECTIVE MARCH 1, 2004
TO THE
AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM
REINSURANCE AGREEMENT
EFFECTIVE MARCH 1, 2004
BETWEEN
HARTFORD LIFE INSURANCE COMPANY
("CEDING COMPANY")
AND
RGA REINSURANCE COMPANY
("REINSURER")
RECITALS
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend or modify Article
XII, Article XIII, Article XXII, Exhibit II and Exhibit III under the Agreement.
NOW, THEREFORE for good and valuable considerations, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
AMENDMENT
The parties hereby agree to amend or modify the Agreement, by amending Article
XII to reflect the change in the Claims language, for policies issued on or
after the effective date of this amendment.
The parties agree to remove Article XII, in its entirety and replace it with the
following, effective March 1, 2004.
ARTICLE XII
CLAIMS
A. LIABILITY
IF THE CEDING COMPANY IS LIABLE FOR INSURANCE BENEFITS ON A POLICY ELIGIBLE FOR
REINSURANCE UNDER THIS AGREEMENT, THE REINSURER SHALL BE LIABLE FOR ITS PORTION
OF THE REINSURANCE ON THAT POLICY, AS DESCRIBED IN SCHEDULE B. THE CEDING
COMPANY SHALL OPERATE IN GOOD FAITH AND ADJUDICATE CLAIMS TO
Last Survivor 03/01/2004 -- Amendment 2
Between HLIC and RGA
1
POLICIES REINSURED UNDER THIS AGREEMENT AS IF THERE WERE NO REINSURANCE. ALL
CLAIM SETTLEMENTS ON POLICIES REINSURED HEREUNDER WILL BE SUBJECT TO THE TERMS
AND CONDITIONS OF THE PARTICULAR POLICY, STATUTORY REQUIREMENTS OR GOOD FAITH
SETTLEMENT PRACTICES MADE BY THE CEDING COMPANY.
THIS PARAGRAPH SHALL WORK IN CONJUNCTION WITH PARAGRAPH D BELOW.
B. NOTIFICATION
WHEN THE CEDING COMPANY IS ADVISED OF A CLAIM, THE REINSURER MUST BE NOTIFIED
PROMPTLY.
C. CLAIM PAYMENT
1. PROOFS
IF A CLAIM IS MADE UNDER A POLICY ELIGIBLE FOR REINSURANCE UNDER THIS AGREEMENT,
THE REINSURER WILL ABIDE BY THE SETTLEMENT MADE BY THE CEDING COMPANY. THE
CEDING COMPANY WILL PROVIDE THE REINSURER WITH COPIES OF PROOF OF DEATH, PROOF
OF PAYMENT AND THE CLAIMANT'S STATEMENT. COPIES OF CLAIM FILES AND/OR OTHER
WRITTEN MATTERS RELATING TO A CLAIM REIMBURSEMENT UNDER THIS AGREEMENT SHALL BE
FURNISHED TO THE REINSURER UPON WRITTEN REQUEST.
2. PAYMENT OF REINSURANCE PROCEEDS
THE REINSURER WILL PAY THE CEDING COMPANY REINSURANCE PROCEEDS ON CLAIMS MADE
UNDER POLICIES ELIGIBLE FOR REINSURANCE UNDER THIS AGREEMENT WITHIN THIRTY (30)
DAYS OF RECEIPT OF PROOFS AS PROVIDED FOR IN SECTION C.1, ABOVE.
THE REINSURER SHALL ALSO REIMBURSE THE CEDING COMPANY FOR ITS PROPORTIONATE
SHARE OF COVERED CLAIM EXPENSES AND ANY INTEREST PAID ON CLAIMS. PARTICIPATION
IN ACCRUED INTEREST BY THE REINSURER SHALL BE IN ACCORDANCE WITH THE APPLICABLE
STATE STATUTORY REGULATIONS.
PAYMENT OF LIFE REINSURANCE PROCEEDS WILL BE MADE IN A SINGLE SUM REGARDLESS OF
THE CEDING COMPANY'S MODE OF SETTLEMENT WITH THE PAYEE.
3. BALANCES IN DEFAULT
IF THE REINSURER IS DELINQUENT, THIRTY (30 DAYS PAST DUE, ON AN UNDISPUTED NET
AMOUNT DUE TO THE CEDING COMPANY, THE CEDING COMPANY WILL HAVE THE RIGHT TO
OFFSET SUCH AMOUNT FROM ANY AMOUNT DUE THE REINSURER IN ACCORDANCE WITH ARTICLE
XVII. TO THE EXTENT THERE IS AN INSUFFICIENT BALANCE FROM WHICH TO OFFSET SUCH
AMOUNTS, THE CEDING COMPANY HAS THE RIGHT TO RECAPTURE, PROVIDED THE CEDING
COMPANY HAS GIVEN THE REINSURER NINETY (90) DAYS WRITTEN NOTICE OF ITS INTENT TO
RECAPTURE AND THE REINSURER HAS FAILED TO PAY THE NET AMOUNT DUE BY THE END OF
THE NINETY (90) DAY NOTICE PERIOD.
Last Survivor 03/01/2004 -- Amendment 2
Between HLIC and RGA
2
D. CONTESTED CLAIMS
1. THE CEDING COMPANY MUST PROMPTLY NOTIFY THE REINSURER OF ITS INTENT TO
CONTEST A CLAIM REINSURED UNDER THIS AGREEMENT OR TO ASSERT DEFENSES. THE
REINSURER SHALL RESPOND TO THE CEDING COMPANY, IN WRITING, WITHIN TEN (10)
BUSINESS DAYS OF RECEIPT OF SUCH NOTICE, WHETHER IT WILL BE A PARTY TO THE
CONTEST OR ASSERTION OF DEFENSES. IF THE REINSURER DOES NOT RESPOND TO THE
CEDING COMPANY, IN WRITING, WITHIN TEN (10) BUSINESS DAYS OF RECEIPT OF SUCH
NOTICE, THE REINSURER WILL BE DEEMED TO HAVE ELECTED TO BE A PARTY TO THE
CONTEST OR ASSERTION OF DEFENSES.
2. IF THE REINSURER SHOULD DECLINE TO PARTICIPATE IN THE CONTEST OR ASSERTION
OF DEFENSES, THEN:
a) THE REINSURER WILL RELEASE ALL OF ITS LIABILITY BY PAYING THE CEDING
COMPANY THE FULL AMOUNT OF REINSURANCE AND ITS PROPORTIONATE SHARE OF
COVERED EXPENSES INCURRED TO THE DATE ON WHICH THE REINSURER NOTIFIED
THE CEDING COMPANY THAT IT DECLINED TO BE A PARTY TO THE CONTEST; AND
b) THE REINSURER SHALL NOT SHARE IN ANY SUBSEQUENT INCREASE OR REDUCTION
IN LIABILITY.
3. IF THE REINSURER SHOULD ELECT TO PARTICIPATE IN THE CONTEST OR ASSERTION OF
DEFENSES, THEN:
a) THE REINSURER WILL PAY ITS PROPORTIONATE SHARE OF ANY SETTLEMENT UP
TO THE MAXIMUM THAT WOULD HAVE BEEN PAYABLE HAD THERE BEEN NO
CONTROVERSY;
b) THE REINSURER WILL SHARE IN THE EXPENSE OF ANY CONTEST OR COMPROMISE
OF THE CLAIM IN THE SAME PROPORTION THAT THE REINSURED NET AMOUNT AT
RISK, AS DEFINED IN SCHEDULE B, BEARS TO THE TOTAL NET AMOUNT AT
RISK, AS DEFINED IN SCHEDULE B, ON THE CLAIM; AND
c) THE REINSURER WILL SHARE IN THE REDUCTION OF LIABILITY IN THE SAME
PROPORTION THAT THE REINSURED NET AMOUNT AT RISK, AS DEFINED IN
SCHEDULE B, BEARS TO THE TOTAL NET AMOUNT AT RISK, AS DEFINED IN
SCHEDULE B, ON THE CLAIM.
4. THE REINSURER WILL NOT RECOMMEND TO THE CEDING COMPANY TO CONTEST A CLAIM.
E. MISSTATEMENT OF AGE OR SEX
IF THE AMOUNT OF INSURANCE PROVIDED BY THE POLICY OR POLICIES REINSURED UNDER
THIS AGREEMENT IS INCREASED OR REDUCED BECAUSE OF MISSTATEMENT OF AGE OR SEX
ESTABLISHED AFTER THE DEATH OF THE INSURED, THE REINSURER WILL SHARE WITH THE
CEDING COMPANY IN THIS INCREASE OR REDUCTION.
Last Survivor 03/01/2004 -- Amendment 2
Between HLIC and RGA
3
F. CLAIMS EXPENSES
THE REINSURER WILL PARTICIPATE IN UNUSUAL EXPENSES, DEFINED AS ALL EXPENDITURES
MADE BY THE CEDING COMPANY IN DISPOSITION OF CLAIMS, INCLUDING ALLOCATED
INVESTIGATION, ADJUSTMENT AND LEGAL EXPENSES, COURT COSTS AND ACCRUED INTEREST.
COMPENSATION OF SALARIED OFFICERS AND EMPLOYEES OF THE CEDING COMPANY WILL NOT
BE CONSIDERED CLAIMS EXPENSES, NOR WILL ROUTINE AND USUAL CLAIM INVESTIGATION
EXPENSES BE REIMBURSABLE BY THE REINSURER.
CLAIMS EXPENSES DO NOT INCLUDE EXPENSES INCURRED BY THE CEDING COMPANY AS A
RESULT OF A DISPUTE OR CONTEST ARISING OUT OF CONFLICTING CLAIMS OF ENTITLEMENT
TO POLICY PROCEEDS.
G. RETURN OF PREMIUM FOR MISREPRESENTATIONS AND SUICIDES
IF A MISREPRESENTATION ON AN APPLICATION OR A DEATH OF AN INSURED RISK BY
SUICIDE RESULTS IN THE CEDING COMPANY RETURNING THE POLICY PREMIUMS TO THE
POLICY OWNER RATHER THAN PAYING THE POLICY BENEFITS, THE REINSURER WILL REFUND
ALL OF THE REINSURANCE PREMIUMS IT RECEIVED ON THAT POLICY TO THE CEDING
COMPANY. THIS REFUND GIVEN BY THE REINSURER WILL BE IN LIEU OF ALL OTHER
REINSURANCE BENEFITS PAYABLE ON THAT POLICY UNDER THIS AGREEMENT.
The parties hereby agree to amend or modify the Agreement, by amending Article
XIII to reflect the change in the Extra-Contractual damages language, for
policies issued on or after the effective date of this amendment.
The parties agree to remove Article XIII, in its entirety and replace it with
the following, effective March 1, 2004.
ARTICLE XIII
EXTRA-CONTRACTUAL DAMAGES
IN NO EVENT WILL THE REINSURER HAVE ANY LIABILITY FOR ANY EXTRA-CONTRACTUAL
DAMAGES, WHICH ARE AWARDED AGAINST THE CEDING COMPANY AS A RESULT OF ACTS,
OMISSIONS, OR COURSE OF CONDUCT COMMITTED SOLELY BY THE CEDING COMPANY WITH NO
INVOLVEMENT OF THE REINSURER IN CONNECTION WITH THE INSURANCE REINSURED UNDER
THIS AGREEMENT.
THE REINSURER DOES RECOGNIZE THAT CIRCUMSTANCES MAY ARISE UNDER WHICH THE
REINSURER, IN EQUITY, SHOULD SHARE, TO THE EXTENT PERMITTED BY LAW, IN PAYING
CERTAIN ASSESSED DAMAGES. SUCH CIRCUMSTANCES ARE DIFFICULT TO DEFINE IN ADVANCE,
BUT BY EXAMPLE MAY INVOLVE THOSE SITUATIONS IN WHICH THE REINSURER WAS AN ACTIVE
PARTY IN THE ACT, OMISSION, OR COURSE OF CONDUCT THAT ULTIMATELY RESULTS IN THE
ASSESSMENT OF SUCH DAMAGES. THE EXTENT OF SUCH SHARING IS DEPENDENT ON GOOD
FAITH ASSESSMENT OF CULPABILITY IN EACH CASE, BUT ALL FACTORS BEING EQUAL, THE
DIVISION OF ANY SUCH ASSESSMENT WOULD BE IN THE PROPORTION OF TOTAL NET AMOUNT
AT RISK (AS DEFINED IN SCHEDULE B) ACCEPTED BY EACH PARTY FOR THE PLAN OF
INSURANCE INVOLVED.
Last Survivor 03/01/2004 -- Amendment 2
Between HLIC and RGA
4
The parties hereby agree to amend or modify the Agreement, by amending Article
XXII to reflect the change in the Notices and Communications language, for
policies issued on or after the effective date of this amendment.
The parties agree to remove Article XXII, in its entirety and replace it with
the following, effective March 1, 2004.
ARTICLE XXII
NOTICES AND COMMUNICATIONS
NOTICES AND OTHER COMMUNICATIONS REQUIRED OR PERMITTED TO BE GIVEN UNDER THIS
AGREEMENT SHALL BE DEEMED TO HAVE BEEN DULY GIVEN IF COMMUNICATED, AND
CONFIRMED, BETWEEN THE PARTIES BY FACSIMILE, ELECTRONIC MAIL AND/OR REGULAR MAIL
FOR THE FOLLOWING:
1) THE SUBMISSION (INCLUDING MEDICAL REPORTS AND EXCHANGE OF INFORMATION) FOR
FACULTATIVE REVIEW
2) ADMINISTRATION ISSUES, INCLUDING BUT NOT LIMITED TO, PAYMENT OF PREMIUMS
3) ROUTINE ADMINISTRATION, AND ELECTRONIC REPORTING FORMAT POLICY
4) CLAIMS NOTICES, PROOFS, AND CLAIM CONTESTS
5) ACTUARIAL AND MATERIAL CHANGES REGARDING PRICING
6) DOCUMENT DRAFTING AND REVIEW
7) TAXES
8) AUDITING.
NOTICES AND OTHER COMMUNICATIONS RELATED TO ALL OTHER MATTERS REQUIRED TO BE
GIVEN UNDER THIS AGREEMENT SHALL BE EFFECTIVE IF IN WRITING AND (I) MAILED BY
UNITED STATES REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, OR (II)
DELIVERED BY NATIONALLY RECOGNIZED OVERNIGHT COURIER, OR (III) SENT BY FACSIMILE
TRANSMISSION FOLLOWED BY A CONFIRMATION MAILED BY FIRST CLASS OR OVERNIGHT MAIL
TO:
IF TO THE CEDING COMPANY: IF TO THE REINSURER:
INDIVIDUAL LIFE DIRECTOR OF REINSURANCE REINSURANCE OFFICER
HARTFORD LIFE RGA REINSURANCE COMPANY
000 XXXXXXXXX XXXXXX 0000 XXXXXXXXXX XXXXX XXXXXXX
XXXXXXXX, XX 00000 XXXXXXXXXXXX, XX 00000-6039
FACSIMILE:(000) 000-0000 FACSIMILE: (000) 000-0000
COPY (WHICH SHALL NOT CONSTITUTE COPY (WHICH SHALL NOT CONSTITUTE
NOTICE) TO: NOTICE) TO:
CHIEF ACTUARY
HARTFORD LIFE
000 XXXXXXXXX XXXXXX
XXXXXXXX, XX 00000
FACSIMILE: (000) 000-0000
GENERAL COUNSEL GENERAL COUNSEL
HARTFORD LIFE RGA REINSURANCE COMPANY
000 XXXXXXXXX XXXXXX 0000 XXXXXXXXXX XXXXX XXXXXXX
XXXXXXXX, XX 00000 XXXXXXXXXXXX, XX 00000-6039
FACSIMILE: (000) 000-0000 FACSIMILE:
Last Survivor 33/01/2004 -- Amendment 2
Between HLIC and RGA
5
OR SUCH OTHER ADDRESS OR FAX NUMBER AS ANY PARTY MAY REQUEST BY NOTICE GIVEN
UNDER THIS SECTION. THE FOREGOING SHALL NOT PRECLUDE THE EFFECTIVENESS OF ACTUAL
WRITTEN NOTICE GIVEN TO A PARTY AT ANY ADDRESS OR BY ANY MEANS.
The parties hereby agree to amend or modify the Agreement, by amending Exhibit
II and Exhibit III to reflect the retention binding and issue limits, for
policies issued on or after the effective date of this amendment.
The parties agree to remove Exhibit II and Exhibit III, in their entirety and
replace them with the attached Exhibit II and Exhibit III, effective March 1,
2004.
Except as herein amended, all other terms and conditions of this Agreement shall
remain unchanged.
In witness of the foregoing, the Ceding Company and the. Reinsurer have, by
their respective officers, hereby executed this Amendment in duplicate on the
dates indicated below, with an effective date of March 1, 2004.
RGA REINSURANCE COMPANY
By: /s/ [ILLEGIBLE] Attest: /s/ Xxxxx X. Xxxxxx
-------------------------------- --------------------------------
Name: [ILLEGIBLE] Name: Xxxxx X. Xxxxxx
Title: Sales Vice President Title: Sales Vice President
Date: 3-3-06 Date: 3/3/09
HARTFORD LIFE INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxx Xxxxxx
-------------------------------- --------------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxx Xxxxxx
Title: Assistant Vice President, Title: Vice President, Individual Life
Individual Life Product Product Development
Development
Date: 3/13/2006 Date: 3/13/06
Last Survivor 03/01/2004 -- Amendment 2
Between HLIC and RGA
6
EXHIBIT II
RETENTION, BINDING, AND ISSUE LIMITS
FOR LAST SURVIVOR TREATY
TOTAL POOL LIMITS
EFFECTIVE MARCH 1, 2004
Last Survivor 03/01/2004 -- Amendment 2
Between HLIC and RGA
7
EXHIBIT III
EFFECTIVE MARCH 1, 2004
LAST SURVIVOR LIMITS AND RETENTION
Last Survivor 03/01/2004 -- Amendment 2
Between HLIC and RGA
8
9673-00-03
AMENDMENT
to the
AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM
REINSURANCE AGREEMENT
EFFECTIVE MARCH 1, 2004
between
HARTFORD LIFE INSURANCE COMPANY, HARTFORD,
CONNECTICUT
(hereinafter called the "Ceding Company")
and
RGA REINSURANCE COMPANY, CHESTERFIELD, MISSOURI
(hereinafter called the "Reinsurer")
THIS AMENDMENT IS EFFECTIVE JANUARY 1, 2006
I. PAY PERCENTAGES
Effective for new business issued on and after the effective date of this
Amendment, Exhibit I, Reinsurance Premium Calculation, section 1. Reinsurance
Premium, Annual YRT Reinsurance Premium is hereby revised and replaced as
follows:
"1. Reinsurance Premium
Annual YRT Reinsurance Premium
[Redacted]
1
II. All provisions of the Automatic and Facultative Yearly Renewable Term
Reinsurance Agreement not specifically modified herein remain unchanged.
IN WITNESS WHEREOF, all parties have executed this Amendment in duplicate as
follows:
HARTFORD LIFE INSURANCE COMPANY RGA REINSURANCE COMPANY
By: /s/ [ILLEGIBLE] By: /s/ [ILLEGIBLE]
----------------------- -----------------------
(Signature) (Signature)
Title: AVP, IL Product Dev Title: Vice President
Date: 4/26/2006 Date: 3-28-06
Location: [ILLEGIBLE] Location: St. Louis, MO
2
AMENDMENT 4
EFFECTIVE JUNE 23, 2006
TO THE
AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE MARCH 1, 2004
("AGREEMENT")
BETWEEN
HARTFORD LIFE INSURANCE COMPANY
("CEDING COMPANY")
AND
RGA REINSURANCE COMPANY
("REINSURER")
RECITALS
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend or modify the
Agreement to reflect the addition of the Hartford Variable Universal Life Last
Survivor product for policies issued on or after June 23, 2006.
NOW, THEREFORE for good and valuable considerations, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
AMENDMENT
I. Schedule A is deleted in its entirety and replaced with the attached Schedule
A.
II. Exhibit VI is deleted in its entirety and replaced with the attached Exhibit
VI.
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
Last Survivor Excess Treaty -- Effective 03/01/2004
Between HLIC and RGA
Amendment #4 -- Effective 06/23/2006
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, hereby executed this Amendment in duplicate on the dates
indicated below, with an effective date of June 23, 2006.
RGA REINSURANCE COMPANY
By: /s/ [ILLEGIBLE] Attest: /s/ Xxxxx X. Xxxxxx
------------------------------ ------------------------------
Name: [ILLEGIBLE] Name: Xxxxx X. Xxxxxx
Title: Sales Vice President Title: Sales Vice President
Date: 11-29-06 Date: 11/29/06
HARTFORD LIFE INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxxxxx X. Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxxxxx X. Xxxxxx
Title: Vice President IL Product Title: Vice President & Actuary
Date: 12/08/2006 Date: 12/08/2006
Last Survivor Excess Treaty -- Effective 03/01/2004
Between HLIC and RGA
Amendment #4 -- Effective 06/23/2006
2
SCHEDULE A
PLANS COVERED UNDER THIS AGREEMENT
EFFECTIVE 06/23/2006
TYPE OF BUSINESS Fully underwritten Last Survivor Plans Single Life Term
under the "Xxxxx" Program described in Exhibit IV
PLANS OF INSURANCE GENERAL FORM NO'S.
----------------------------------------------------------------------------------------------------------------
Last Survivor Universal Life HL-14393, HL-A14407,XXX-1011
Last Survivor Variable Life HL-14623, XXX-1020
Last Survivor Variable Life II LA-1151(98), HL-15441(98)(NY)
Last Survivor SPVL HL-LSPVL97, XXX-LSPVL97
Hartford Variable Universal Life Last Survivor LA-1287(06), HL-19217(06)(NY)
RIDERS
----------------------------------------------------------------------------------------------------------------
Four Year Term Xxxxx XX-12933, HL-Al2989, XXX-1080
Estate Protection Xxxxx XX-14627, XXX-1023
Twenty-four Month Exchange Xxxxx XX-12963, XXX-1013
Single Life YRT Life Insurance Xxxxx XX-14626, XXX-1021, LA-1150(98)
Guaranteed COI Benefit Rider LA-1174(00)
Last Survivor Term Xxxxx XX-14394
Estate Tax Repeal Rider LA-1194(02), HL-15842(02), HL-15843(02)
Last Survivor Exchange Option Rider (24) LA-10022, LA-1013, HL-14395, HL-14624
Estate Tax Repeal Benefit Rider LA-1168(00), LA-1166(00), HL-11503(00)
Mortality and Expense Risk Rates Rider LA-1198(02), HL-1584(02)
DESCRIPTIONS
RIDERS WHERE ADDITIONAL PREMIUM IS DUE TO THE REINSURER:
Four Year Term Rider: This rider will pay the term insurance benefit upon
receipt of due proof of the Last Surviving Insured's death while the policy and
this rider are in force.
Estate Protection Rider: This rider will pay the term insurance benefit upon
receipt of due proof of the Last Surviving Insured's death while the policy and
this rider are in force.
Single Life YRT Life Insurance Rider: This rider will provide additional term
insurance coverage on the life of the named Insured.
Last Survivor Term Rider: This rider provides supplemental last survivor term
insurance coverage on the base insureds.
Last Survivor Excess Treaty -- Effective 03/01/2004
Between HLIC and RGA
Amendment #4 -- Effective 06/23/2006
3
SCHEDULE A
PLANS COVERED UNDER THIS AGREEMENT
EFFECTIVE 06/23/2006
RIDERS THAT ALTER THE POLICY AND IN WHICH NO ADDITIONAL PREMIUM IS PAID TO THE
REINSURER. IF A POLICY HAS THIS RIDER IT IS STILL COVERED UNDER THE AGREEMENT:
Twenty-four Month Exchange Rider: This rider allows the last survivor policy to
be exchanged for two individual policies on the life of each of the Insureds,
subject to the conditions stated in this rider. For example, this rider can be
used in case of divorce.
Estate Tax Repeal Rider: The purpose of this rider is to allow a policy to
surrender without surrender charges if the Federal Estate Tax is not in effect
in 2011. If a reinsured policy has this rider, the policy is still covered under
this Agreement, and there is no additional premium paid to the Reinsurer
specifically for the Estate Tax Rider.
Guaranteed COI Benefit Rider: This rider provides guaranteed cost of insurance
rates for the first 10 policy years. On each policy anniversary, we declare a
cost of insurance rate for a single policy year. This policy year is the policy
year 9 years from the then current policy anniversary. Thus the rider provides
that on any policy anniversary, cost of insurance rates over the next 10 years
will not exceed those provided by the rider. This rider is currently available
in only a few states and on variable life policy forms where the face amount is
at least thirty million dollars.
Last Survivor Exchange Option Rider (24): This rider allows the last survivor
policy to be exchanged for two individual policies on the life of each of the
Insureds, subject to the conditions stated in this rider. For example, this
rider can be used in case of divorce.
Estate Tax Repeal Benefit Rider: This rider will pay the account value less
indebtedness if the Federal Estate Tax Law is fully repealed by December 31,
2010 and we receive a request for this benefit amount from the insured.
Mortality and Expense Risk Rider: This rider guarantees that the mortality and
expense risk rate will be zero for years greater than and equal to 21.
Last Survivor Excess Treaty -- Effective 03/01/2004
Between HLIC and RGA
Amendment #4 -- Effective 06/23/2006
4
EXHIBIT VI
EFFECTIVE 06/23/2006
Annual per 1000 Yearly Renewable Term reinsurance rates are attached.
PRODUCTS USING MULTI-CLASS RATE TABLES:
Last Survivor Variable Life
Last Survivor Variable Life II
[Redacted]
Hartford Variable Universal Life Last Survivor
[Redacted]
PRODUCTS USING UNI-CLASS RATE TABLES:
Last Survivor Universal Life
[Redacted]
Last Survivor SPVL
[Redacted]
Last Survivor Excess Treaty -- Effective 03/01/2004
Between HLIC and RGA
Amendment #4 -- Effective 06/23/2006
5
AMENDMENT 5
EFFECTIVE OCTOBER 1, 2006
TO THE
AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE MARCH 1, 2004
REINSURER'S AGREEMENT NO. 9673-00-00
("AGREEMENT")
BETWEEN
HARTFORD LIFE INSURANCE COMPANY
("CEDING COMPANY")
AND
RGA REINSURANCE COMPANY
("REINSURER")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend or modify the
Agreement to change the Reinsurer's share of the Automatic Binding Limit for
professional athletes for policies applied for on or after October 1, 2006.
NOW, THEREFORE for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree to amend the
Agreement as follows:
1. Exhibit II and Exhibit III are deleted in their entirety and replaced with
the attached revised Exhibit II and Exhibit Ill, respectively.
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
Last Survivor Excess Treaty -- Effective 03/01/2004
Between HLIC and RGA
Amendment #5 -- Effective 10/01/2006
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of October 1, 2006.
RGA REINSURANCE COMPANY
By: /s/ Xxxxxx Xxxx Attest: /s/ Xxxxxxx X. Xxx
------------------------------ ------------------------------
Name: Xxxxxx Xxxx Name: Xxxxxxx X. Xxx
Title: Sales Vice President Title: Sales Vice President
Date: 8/23/2007 Date: 8/23/2007
HARTFORD LIFE INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxx Xxxxxx
Title: Vice President, Individual Title: Senior Vice President,
Life Product Individual Life Product
Date: 10/22/2007 Date: 10/22/2007
Last Survivor Excess Treaty -- Effective 03/01/2004
Between HLIC and RGA
Amendment #5 -- Effective 10/01/2006
2
EXHIBIT II
RETENTION, BINDING, AND ISSUE LIMITS
FOR LAST SURVIVOR TREATY
TOTAL POOL LIMITS
EFFECTIVE FOR POLICIES APPLIED FOR ON OR AFTER OCTOBER 1, 2006
Last Survivor Excess Treaty -- Effective 03/01/2004
Between HLIC and RGA
Amendment #5 -- Effective 10/01/2006
3
EXHIBIT III
EFFECTIVE FOR POLICIES APPLIED FOR ON OR AFTER OCTOBER 1,
2006
LAST SURVIVOR I LIMITS AND RETENTION
[Redacted]
Last Survivor Excess Treaty -- Effective 03/01/2004
Between HLIC and RGA
Amendment #5 -- Effective 10/01/2006
4
RGA Re No. (000) 0000-00-00
AMENDMENT 6
EFFECTIVE JUNE 1, 2007
TO THE
AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE MARCH 1, 2004
BETWEEN
HARTFORD LIFE INSURANCE COMPANY ("CEDING COMPANY")
AND
RGA REINSURANCE COMPANY ("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
reflect the availability of an increased retention limit on cases that would
otherwise qualify for Automatic Reinsurance.
NOW, THEREFORE for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree to amend the
Agreement as follows:
I. Schedule B is deleted in its entirety and replaced with the attached revised
Schedule B.
II. Exhibit II is deleted in its entirety and replaced with the attached
revised Exhibit II.
III. Exhibit III is deleted in its entirety and replaced with the attached
revised Exhibit III.
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
Last Survivor Treaty -- Effective 03/01/2004
Between HLIC and RGA
Amendment #6 -- Effective 06/01/2007
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of June 1, 2007.
RGA REINSURANCE COMPANY
By: /s/ Xxxxxx Xxxx Attest: /s/ Xxxxxxx X. Xxx
------------------------------ ------------------------------
Name: Xxxxxx Xxxx Name: Xxxxxxx X. Xxx
Title: Sales Vice President Title: Sales Vice President
Date: 8/31/07 Date: 8/31/07
HARTFORD LIFE INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxx Xxxxxx
Title: Vice President, Individual Title: Senior Vice President,
Life Product Individual Life Product
Date: 10/22/2007 Date: 10/22/2007
Last Survivor Treaty -- Effective 03/01/2004
Between HLIC and RGA
Amendment #6 -- Effective 06/01/2007
2
SCHEDULE B
BASIS OF REINSURANCE
EFFECTIVE JUNE 1, 2007
REINSURANCE POOL SHARE:
[Redacted]
LEAD REINSURER:
[Redacted]
AUTOMATIC REINSURANCE
The Ceding Company will retain each risk up to its available retention limits as
specified by Retention Limit I in Exhibit II. However, the Ceding Company may
elect, at its sole discretion, to retain up to its available retention limits as
specified by Retention Limit II in Exhibit II provided the case would otherwise
meet the requirements for Automatic Reinsurance. Documentation of such cases
will be retained in the underwriting records of the Ceding Company. The
Reinsurance Pool Share of amounts in excess of the Ceding Company's retention
will be ceded to the Reinsurer for reinsurance in accordance with this
Agreement.
FACULTATIVE REINSURANCE
The Reinsurer will accept X% (as determined at issue) of the risk.
NET AMOUNT AT RISK DEFINITION:
[Redacted]
MINIMUM FACULTATIVE REINSURANCE CESSION:
[Redacted]
FACULTATIVE OBLIGATORY:
The Reinsurer shall provide the following Facultative Obligatory capacity:
Last Survivor Treaty -- Effective 03/01/2004
Between HLIC and RGA
Amendment #6 -- Effective 06/01/2007
3
EXHIBIT II
RETENTION, BINDING, AND ISSUE LIMITS FOR LAST SURVIVOR TREATY
TOTAL POOL LIMITS
EFFECTIVE JUNE 1, 2007
[Redacted]
Last Survivor Treaty -- Effective 03/01/2004
Between HLIC and RGA
Amendment #6 -- Effective 06/01/2007
4
EXHIBIT II
RETENTION, BINDING, AND ISSUE LIMITS FOR LAST SURVIVOR TREATY
TOTAL POOL LIMITS
EFFECTIVE JUNE 1, 2007
[Redacted]
Last Survivor Treaty -- Effective 03/01/2004
Between HLIC and RGA
Amendment #6 -- Effective 06/01/2007
5
EXHIBIT III
RETENTION LIMIT I
EFFECTIVE JUNE 1, 2007
LAST SURVIVOR LIMITS AND RETENTION
[Redacted]
Last Survivor Treaty -- Effective 03/01/2004
Between HLIC and RGA
Amendment #6 -- Effective 06/01/2007
6
EXHIBIT III
RETENTION LIMIT II
EFFECTIVE JUNE 1, 2007
LAST SURVIVOR LIMITS AND RETENTION
[Redacted]
Last Survivor Treaty -- Effective 03/01/2004
Between HLIC and RGA
Amendment #6 -- Effective 06/01/2007
7
(000) 0000-00-00
AMENDMENT 8
EFFECTIVE FEBRUARY 11, 2008
TO THE
AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE MARCH 1, 2004
BETWEEN
HARTFORD LIFE INSURANCE COMPANY ("CEDING COMPANY")
AND
RGA REINSURANCE COMPANY ("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
revise the maximum issue age to 85; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
provide that certain specified replacement business shall not be counted toward
the Jumbo Limit; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
increase the Automatic Binding, Automatic Issue and Automatic Processing Limits
under the Retention Limit II in Exhibit II, originally described in Amendment 6;
and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
clarify the situations in which the Retention Limit II schedule would apply.
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree to amend the
Agreement as follows:
- Article II, Section A, Paragraph 4, is deleted in its entirety and replaced
with the following:
4. The minimum issue age will be 18 and the maximum issue age will be
85.
- Article Il Section A, Paragraph 7, is deleted in its entirety and replaced
with the following:
Last Survivor Treaty -- Effective 3/01/2004
Between HLIC and RGA
Amendment 8 -- Effective 2/11/2008
1
(000) 0000-00-00
Last Survivor Treaty -- Effective 3/01/2004
Between HLIC and RGA
Amendment 8 -- Effective 2/11/2008
2
(000) 0000-00-00
- Schedule B is deleted in its entirety and replaced with the attached revised
Schedule B.
- Exhibit II is deleted in its entirety and replaced with the attached revised
Exhibit II.
- Exhibit III is deleted in its entirety and replaced with the attached
revised Exhibit III.
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
Last Survivor Treaty -- Effective 3/01/2004
Between HLIC and RGA
Amendment 8 -- Effective 2/11/2008
3
(000) 0000-00-00
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of February 11, 2008.
RGA REINSURANCE COMPANY
By: /s/ Xxxxx X. Xxxxxx Attest: /s/ Xxxxx Xxxxxxx
------------------------------- ---------------------------------
Name: Xxxxx X. Xxxxxx Name: Xxxxx Xxxxxxx
Title: Vice President & Actuary Title: Vice President & Actuary
Date: 8/11/2009 Date: 8/11/2009
HARTFORD LIFE INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxx Xxxxxx
------------------------------- ---------------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxx Xxxxxx, FSA, MAAA
Title: Vice President, Individual Life Title: Senior Vice President Individual
Product Life Product Management
Date: 8/31/2009 Date: 8/31/2009
Last Survivor Treaty -- Effective 3/01/2004
Between HLIC and RGA
Amendment 8 -- Effective 2/11/2008
4
(000) 0000-00-00
SCHEDULE B
BASIS OF REINSURANCE
EFFECTIVE FEBRUARY 11, 2008
REINSURANCE POOL SHARE:
[Redacted]
LEAD REINSURER:
[Redacted]
AUTOMATIC REINSURANCE
The Ceding Company will retain each risk up to its available retention limits as
specified by Retention Limit I in Exhibit II. However, for any of the following
four circumstances, the Ceding Company will retain up to its available retention
limits as specified by Retention Limit II in Exhibit II, provided the case would
otherwise meet the requirements for Automatic Reinsurance:
(1) The risk qualifies for the Ceding Company's current Enhanced Standard
Program;
(2) The selling broker requests that the Ceding Company retain the entire risk
(up to the applicable Retention Limit II);
(3) Additional Automatic Issue capacity is needed which otherwise is limited
under Retention Limit I; or
(4) The Ceding Company chooses to place the risk in a rate class more
competitive than the actual rate class indicated by its standard underwriting
practices and guidelines (although any reinsurance premium rates would be based
on the actual rate class indicated).
In circumstances (2) through (4) above, approval of each such case is required
by an underwriting director of the Ceding Company. Documentation of Retention
Limit II cases will be retained in the underwriting records of the Ceding
Company. The Reinsurance Pool Share of amounts in excess of the Ceding Company's
retention will be ceded to the Reinsurer for reinsurance in accordance with this
Agreement.
FACULTATIVE REINSURANCE
The Reinsurer will accept X% (as determined at issue) of the risk.
NET AMOUNT AT RISK DEFINITION:
MINIMUM FACULTATIVE REINSURANCE CESSION:
[Redacted]
FACULTATIVE OBLIGATORY:
[Redacted]
Last Survivor Treaty -- Effective 3/01/2004
Between HLIC and RGA
Amendment 8 -- Effective 2/11/2008
5
(000) 0000-00-00
EXHIBIT II
RETENTION, BINDING, AND ISSUE LIMITS FOR LAST SURVIVOR TREATY
TOTAL POOL LIMITS
EFFECTIVE FEBRUARY 11, 2008
[Redacted]
Last Survivor Treaty -- Effective 3/01/2004
Between HLIC and RGA
Amendment 8 -- Effective 2/11/2008
6
(000) 0000-00-00
EXHIBIT II
RETENTION, BINDING, AND ISSUE LIMITS FOR LAST SURVIVOR TREATY
TOTAL POOL LIMITS
EFFECTIVE FEBRUARY 11, 2008
[Redacted]
Last Survivor Treaty -- Effective 3/01/2004
Between HLIC and RGA
Amendment 8 -- Effective 2/11/2008
7
(000) 0000-00-00
EXHIBIT III
EFFECTIVE FEBRUARY 11, 2008
Last Survivor Limits and Retention Worksheet
(NOTE: If one life is uninsurable, treat the risk as a Single Life risk for the
purpose of limits.)
[Redacted]
Last Survivor Treaty -- Effective 3/01/2004
Between HLIC and RGA
Amendment 8 -- Effective 2/11/2008
8
RGA Re No. (000) 0000-00-00
AMENDMENT 9
EFFECTIVE MAY 1, 2008
TO THE
AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE MARCH 1, 2004
("AGREEMENT")
BETWEEN
HARTFORD LIFE INSURANCE COMPANY ("CEDING COMPANY")
AND
RGA REINSURANCE COMPANY ("REINSURER")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
reflect the addition of the Hartford Leaders VUL Joint Legacy product, for
policies issued on or after the effective date of this Amendment.
NOW, THEREFORE for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree to amend the
Agreement as follows:
I. Schedule A is deleted in its entirety and replaced with the attached
revised Schedule A; and
II. The first page of Exhibit VI is deleted in its entirety and replaced with
the attached revised first page of Exhibit VI.
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
LS Excess Treaty -- Effective 3/01/2004
Between HLIC and RGA
Amendment #9 -- Effective 5/01/2008
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of May 1, 2008.
RGA REINSURANCE COMPANY
By: /s/ Xxxxx X. Xxxxxx Attest: /s/ Xxxxx Xxxxxxx
------------------------------ ------------------------------
Name: Xxxxx X. Xxxxxx Name: Xxxxx Xxxxxxx
Title: Vice President & Actuary Title: Vice President & Actuary
Date: 9/12/2008 Date: 9-12-2008
HARTFORD LIFE INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxx Xxxxxx, FSA, MAAA
Title: Vice President, IL Product Title: Senior Vice President
IL Product Mgmt.
Date: 10/6/2008 Date: 10/6/2008
LS Excess Treaty -- Effective 3/01/2004
Between HLIC and RGA
Amendment #9 -- Effective 5/01/2008
2
SCHEDULE A
PLANS COVERED UNDER THIS AGREEMENT
EFFECTIVE MAY 1, 2008
TYPE OF BUSINESS Fully underwritten Last Survivor Plans Single Life
Term under the "Xxxxx" Program described in
Exhibit IV
PLANS OF INSURANCE GENERAL FORM NO'S.
------------------------------------------------------------------------
Last Survivor Universal Life HL-14393, HL-A14407,XXX-1011
Last Survivor Variable Life HL-14623, XXX-1020
Last Survivor Variable Life II LA-1151(98), HL-15441(98)(NY)
Last Survivor SPVL HL-LSPVL97, XXX-LSPVL97
Hartford Variable Universal Life LA-1287(06), HL-19217(06)(NY)
Last Survivor
Hartford Leaders VUL Joint Legacy LA-1287(06), HL-19217(06)(NY)
RIDERS
------------------------------------------------------------------------
Four Year Term Xxxxx XX-12933, HL-A12989, XXX-1080
Estate Protection Xxxxx XX-14627, XXX-1023
Twenty-four Month Exchange Xxxxx XX-12963, XXX-1013
Single Life YRT Life Insurance HL-14626, XXX-1021, LA-1150(98)
Rider
Guaranteed COI Benefit Rider LA-1174(00)
Last Survivor Term Xxxxx XX-14394
Estate Tax Repeal Rider LA-1194(02), HL-15842(02),
HL-15843(02)
Last Survivor Exchange Option Rider LA-10022, LA-1013, HL-14395,
(24) HL-14624
Estate Tax Repeal Benefit Rider LA-1168(00), LA-1166(00),
HL-11503(00)
Mortality and Expense Risk Rates LA-1198(02), HL-1584(02)
Rider
DESCRIPTIONS
RIDERS WHERE ADDITIONAL PREMIUM IS DUE TO THE REINSURER:
Four Year Term Rider: This rider will pay the term insurance benefit upon
receipt of due proof of the Last Surviving Insured's death while the policy and
this rider are in force.
Estate Protection Rider: This rider will pay the term insurance benefit upon
receipt of due proof of the Last Surviving Insured's death while the policy and
this rider are in force.
Single Life YRT Life Insurance Rider: This rider will provide additional term
insurance coverage on the life of the named Insured.
Last Survivor Term Rider: This rider provides supplemental last survivor term
insurance coverage on the base insureds.
LS Excess Treaty -- Effective 3/01/2004
Between HLIC and RGA
Amendment #9 -- Effective 5/01/2008
3
SCHEDULE A
PLANS COVERED UNDER THIS AGREEMENT
EFFECTIVE MAY 1, 2008
RIDERS THAT ALTER THE POLICY AND IN WHICH NO ADDITIONAL PREMIUM IS PAID TO THE
REINSURER. IF A POLICY HAS THIS RIDER IT IS STILL COVERED UNDER THE AGREEMENT:
Twenty-four Month Exchange Rider: This rider allows the last survivor policy to
be exchanged for two individual policies on the life of each of the Insureds,
subject to the conditions stated in this rider. For example, this rider can be
used in case of divorce.
Estate Tax Repeal Rider: The purpose of this rider is to allow a policy to
surrender without surrender charges if the Federal Estate Tax is not in effect
in 2011. If a reinsured policy has this rider, the policy is still covered under
this Agreement, and there is no additional premium paid to the Reinsurer
specifically for the Estate Tax Rider.
Guaranteed COI Benefit Rider: This rider provides guaranteed cost of insurance
rates for the first 10 policy years. On each policy anniversary, we declare a
cost of insurance rate for a single policy year. This policy year is the policy
year 9 years from the then current policy anniversary. Thus the rider provides
that on any policy anniversary, cost of insurance rates over the next 10 years
will not exceed those provided by the rider. This rider is currently available
in only a few states and on variable life policy forms where the face amount is
at least thirty million dollars.
Last Survivor Exchange Option Rider (24): This rider allows the last survivor
policy to be exchanged for two individual policies on the life of each of the
Insureds, subject to the conditions stated in this rider. For example, this
rider can be used in case of divorce.
Estate Tax Repeal Benefit Rider: This rider will pay the account value less
indebtedness if the Federal Estate Tax Law is fully repealed by December 31,
2010 and we receive a request for this benefit amount from the insured.
Mortality and Expense Risk Rider: This rider guarantees that the mortality and
expense risk rate will be zero for years greater than and equal to 21.
LS Excess Treaty -- Effective 3/01/2004
Between HLIC and RGA
Amendment #9 -- Effective 5/01/2008
4
EXHIBIT VI
EFFECTIVE MAY 1, 2008
Annual per 1000 Yearly Renewable Tern reinsurance rates are attached.
PRODUCTS USING MULTI-CLASS RATE TABLES:
Last Survivor Variable Life
[Redacted]
Last Survivor Variable Life II
[Redacted]
Hartford Variable Universal Life Last Survivor
[Redacted]
Hartford Leaders VUL Joint Legacy
[Redacted]
PRODUCTS USING UNI-CLASS RATE TABLES:
Last Survivor Universal Life
[Redacted]
Last Survivor SPVL
[Redacted]
LS Excess Treaty -- Effective 3/01/2004
Between HLIC and RGA
Amendment #9 -- Effective 5/01/2008
5
RGA Re No. (000) 00000-00-00
AMENDMENT 11
EFFECTIVE MARCH 1, 2009
TO THE
AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE MARCH 1, 2004
("AGREEMENT")
BETWEEN
HARTFORD LIFE INSURANCE COMPANY
("CEDING COMPANY")
AND
RGA REINSURANCE COMPANY
("REINSURER")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Liability and
Termination articles of the Agreement to clarify liability after termination of
the Agreement for new business; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
terminate it for new business.
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
I. Article III, Liability, is amended to add the following Section H:
H. Following the termination of this Agreement for new business, as described
in Article XIX, the Reinsurer shall continue to be liable for:
1. All Automatic and Facultative Reinsurance in effect just before such
termination of this Agreement;
2. All Automatic Reinsurance:
a. that becomes effective after such termination of this Agreement on
face amount increases issued on, and reinstatements of, policies
issued before such termination of this Agreement; or
b. in excess of the Ceding Company's retention that becomes effective
after such termination of this Agreement on face amount increases
issued on fully retained policies issued before termination.
Last Survivor Excess Treaty -- Effective 3/01/2004
Between HLIC and RGA
Amendment 11 -- Effective 03/1/2009
1
3. All Facultative Reinsurance coverage that becomes effective after such
termination of this Agreement, on risks facultatively submitted to the Reinsurer
before such termination.
II. Article XIX, Termination, is deleted in its entirety and replaced with the
following:
A. The Ceding Company and the Reinsurer may terminate this Agreement as
it applies to the new business of each by giving ninety (90) days'
written notice of termination. The day the notice is deposited in the
mail addressed to the Home Office, or to an Officer of each party,
will be the first day of the ninety-day (90) period. In addition,
this Agreement may be terminated immediately for the acceptance of
new reinsurance by either party if one of the parties becomes
insolvent as described in Article XVI.
B. During the ninety-day (90) period, this Agreement will continue to be
in force between the terminating parties.
C. Following termination of this Agreement for new business, the
terminating parties shall remain liable in accordance with Article
III of this Agreement.
III. This Agreement will terminate for new business effective March 1, 2009.
Except as herein amended, all other terms and conditions of the Agreement shall
remain unchanged and in full force and effect.
Last Survivor Excess Treaty -- Effective 3/01/2004
Between HLIC and RGA
Amendment 11 -- Effective 03/1/2009
2
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of March 1, 2009.
RGA REINSURANCE COMPANY
By: /s/ Xxxxx X. Xxxxxx Attest: /s/ Xxxxx Xxxxxxx
------------------------------ ------------------------------
Name: Xxxxx X. Xxxxxx Name: Xxxxx Xxxxxxx
Title: Vice President & Actuary Title: Vice President & Actuary
Date: 8-31-09 Date: 8/31/2009
HARTFORD LIFE INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxx Xxxxxx, FSA, MAAA
Title: Vice President, Individual Title: Senior Vice President
Life Product IL Product Management
Date: 9/24/2009 Date: 9/24/2009
Last Survivor Excess Treaty -- Effective 3/01/2004
Between HLIC and RGA
Amendment 11 -- Effective 03/1/2009
3
(000)0000-00-00
AMENDMENT 12
EFFECTIVE JUNE 1, 2005
TO THE
AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE MARCH 1, 2004
BETWEEN
HARTFORD LIFE INSURANCE COMPANY ("CEDING COMPANY")
AND
RGA REINSURANCE COMPANY ("REINSURER")
("AGREEMENT")
RECITALS
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement, to
document the Ceding Company's ability to offer coverage at a risk class more
favorable than the True Assessed Risk Class, for policies issued on or after
June 1, 2005.
NOW, THEREFORE for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
1. The above recitals are true and accurate and are incorporated herein.
2. Article II is deleted in its entirety and replaced with the attached Article
II.
3. Except as herein amended, all other terms and conditions of the Agreement
shall remain unchanged.
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, hereby executed this Amendment in duplicate on the dates
indicated below, with an effective date of June 1, 2005.
Last Survivor Excess Treaty -- Effective 3/01/2004
Between HLIC and RGA
Amendment 12 -- Effective 6/01/2005
1
[ILLEGIBLE] 9673-00-09
RGA REINSURANCE COMPANY
By: /s/ Xxxxx X. Xxxxxx Attest: /s/ Xxxxxxxx Xxxxxx
--------------------------------- ----------------------------
Name: Xxxxx X. Xxxxxx Name: Xxxxxxxx Xxxxxx
Title: Vice President & Actuary Title: Vice President & Actuary
Date: 2/14/2011 Date: 2/14/2011
HARTFORD LIFE INSURANCE COMPANY
By: /s/ Xxxxxxx Xxxxxxxxx Attest: /s/ Xxxxxxx Xxxxxx
--------------------------------- ----------------------------
Name: Xxxxxxx Xxxxxxxxx, FSA, MAAA Name: Xxxxxxx Xxxxxx, FSA, MAAA
Title: Asst. Vice President and Actuary Title: Senior Vice President
Individual Life Product Individual Life Product
Management Management
Date: 3/3/2011 Date: 3/3/2011
Last Survivor Excess Treaty -- Effective 3/01/2004
Between HLIC and RGA
Amendment 12 -- Effective 6/01/2005
2
(000) 0000-00-00
ARTICLE II -- REINSURANCE COVERAGE
Reinsurance under this Agreement will apply to insurance issued by the Ceding
Company on the Plans of Insurance shown in Schedule A. Such Plans of Insurance
shall be reinsured with the Reinsurer on an automatic basis, subject to the
requirements set forth in Section A below, or on a facultative basis, subject to
the requirements set forth in Section B below, or on a facultative obligatory
basis, subject to the requirements set forth in Section C below. The
specifications for all reinsurance under this Agreement are provided in Schedule
B.
A. Requirements for Automatic Reinsurance
For risks which meet the requirement for Automatic Reinsurance as set forth
below, the Reinsurer will participate in a reinsurance pool whereby the
Reinsurer will automatically reinsure a portion of the insurance risks as
indicated in Schedule B. The requirements for Automatic Reinsurance are as
follows:
1. Each life must be a resident of the United States or Canada at the time of
application.
2. The risk must be underwritten according to the Ceding Company's standard
underwriting practices and guidelines or the Ceding Company's enhanced standard
underwriting program.
If the Ceding Company would like to offer coverage at a risk class more
favorable than the True Assessed Risk Class, the Ceding Company may:
a. Reinsure the risk automatically under this Agreement with the
Reinsurance Premium based on the True Assessed Risk Class; or
b. Seek to reinsure the risk facultatively under this Agreement at rates
more favorable than the True Assessed Risk Class; or
c. Decide not to reinsure the risk under this Agreement
For the purposes of this Agreement, "True Assessed Risk Class" shall mean the
risk class determined by the Ceding Company prior to any adjustments made as a
result of the Ceding Company's enhanced standard underwriting program.
3. Any risk offered on a facultative basis other than for size by the Ceding
Company to the Reinsurer or any other company will not qualify for Automatic
Reinsurance under this Agreement for the same risk and same life.
4. The maximum issue age is 90 from the inception of the agreement until it is
amended to age 85 effective February 11, 2008.
Last Survivor Excess Treaty -- Effective 3/01/2004
Between HLIC and RGA
Amendment 12 -- Effective 6/01/2005
3
[ILLEGIBLE] 9673-00-09
Last Survivor Excess Treaty -- Effective 3/01/2004
Between HLIC and RGA
Amendment 12 -- Effective 6/01/2005
4
[ILLEGIBLE] 9673-00-09
B. Requirements for Facultative Reinsurance
1. If the requirements for Automatic Reinsurance are met, but the Ceding
company prefers to apply for Facultative Reinsurance with the Reinsurer, or if
the requirements for Automatic Reinsurance are not met and the Ceding Company
applies for Facultative Reinsurance with the Reinsurer, then the Ceding Company
must submit to the Reinsurer all the papers, facsimiles, or sufficient evidence
agreed upon between the Ceding Company and the Reinsurer relating to the
insurability of the individual life for Facultative Reinsurance.
2. For applications for Facultative Reinsurance, the Ceding Company will send
copies of all of the papers or facsimiles relating to the insurability of each
life to the Reinsurer, with the exception of situations where one life is
uninsurable. In those situations, only the papers or facsimiles on the insurable
life will be sent. After the Reinsurer has examined the request, the Reinsurer
will promptly notify the Ceding Company of the underwriting offer subject to
additional requirements or the final underwriting offer. The final underwriting
offer on the individual risk will automatically terminate upon the earlier of
the withdrawal of the application or 120 days from the date of the final offer,
unless coverage is accepted or put in place earlier.
3. Notwithstanding the above, if the requirements for Automatic Reinsurance are
met except that the face amount of reinsurance applied for is greater than the
Automatic Issue Limit, but does not exceed the Automatic Processing Limit, then
the Ceding Company will submit to the Lead Reinsurer (as designated in Schedule
B) all papers relating to the insurability of the individual risk. The Lead
Reinsurer shall review the papers to determine if the risk should be reinsured
by the pool, and, if so, on what basis. The Lead Reinsurer shall provide the
Ceding Company with a response within 24 hours of receipt of the papers.
Approval of the Lead Reinsurer shall be
Last Survivor Excess Treaty -- Effective 3/01/2004
Between HLIC and RGA
Amendment 12 -- Effective 6/01/2005
5
[ILLEGIBLE] 9673-00-09
binding on all other pool members. This process shall be known as Automatic
Processing and subject to the limitations in Exhibits II and III.
C. Requirements for Facultative Obligatory Reinsurance
The Reinsurer agrees to a facultative obligatory arrangement whereby the Ceding
Company may cede a risk to the Reinsurer and the Reinsurer agrees to accept the
risk using the Ceding Company's underwriting evaluation, subject to the
following conditions:
1. The requirements for Automatic Reinsurance specified in Article II must be
met with one exception. This exception is that the total amount of insurance
issued and applied for in all companies on each risk has exceeded the Jumbo
Limits set forth in Exhibits II and III
2. The arrangement is available on all policy forms covered under this
Reinsurance Agreement.
3. The ceded risk is subject to the Facultative Obligatory Automatic Binding
Limits and the Facultative Obligatory Automatic Issue Limits, as stated in
Exhibits II and III. However, to the extent that the Reinsurer has already
filled its available capacity on the risk, the Reinsurer may reduce the provided
capacity by notifying the Ceding Company. In addition, the Reinsurer may choose
to provide Facultative Obligatory capacity greater than as specified in Schedule
B.
4. The Reinsurer will have a reasonable amount of time, but not to exceed two
(2) business days, to respond to the Ceding Company's request for a Facultative
Obligatory risk.
D. Basis of Reinsurance
Reinsurance under this Agreement will be on the basis as stated in Schedule B.
E. Policy Forms
When requested, the Ceding Company will furnish the Reinsurer with a copy of
each policy, rider, rate book, and applicable sales or marketing material that
applies to the life insurance reinsured hereunder.
Last Survivor Excess Treaty -- Effective 3/01/2004
Between HLIC and RGA
Amendment 12 -- Effective 6/01/2005
6
