Exhibit 10.20(g2)
AMENDMENT NO. 4
The Coinsurance Life, Annuity and Disability Income Reinsurance
Agreement effective as of January 1, 1995 (as amended by Amendment No. 1 dated
as of August 3, 1995, and Amendment Nos. 2 and 3 dated as of October 2, 1995),
between EMPLOYERS REASSURANCE CORPORATION of Overland Park, Kansas
(?CORPORATION?), and THE OHIO LIFE INSURANCE COMPANY of Hamilton, Ohio
(?CEDANT?), is hereby amended as follows:
On and after April 1, 1996, the following exclusion is added to Article
I:
This Agreement does not apply to the following accident and
health insurance policies (the ?Excluded Policies?):
All individual disability income insurance contracts of the
CEDANT in force on the effective date of this agreement and
issued by the CEDANT to become effective on or after the
effective date of this agreement (January 1, 1995), including
all riders originally written therewith or later added
thereto.
All group accident and health insurance of the CEDANT
(including accidental death and dismemberment plan issued to
its affiliate) in force on the effective date of this
agreement and issued by the CEDANT to become effective on or
after the effective date of this agreement.
All group accident and health insurance policies (including
long term care) reinsured by the CEDANT prior to the effective
date of this agreement and certificates issued thereunder to
become effective on or after the effective date of this
agreement.
Losses paid by the CEDANT on and after April 1, 1996, with respect to
the Excluded Policies (regardless of when such losses were incurred) are hereby
excluded from this Agreement and shall not be the responsibility of the
CORPORATION.
Immediately after execution of this Amendment, cash in an amount equal
to $4,801,115, constituting the net amount calculated to reflect:
(a) that portion of the reserves identified in Article VI of
this Agreement attributable to the Excluded Policies at the close of
business on March 31, 1996, less the amount of any losses that have
been paid on or after April 1, 1996, through December 31, 1996, with
respect to the Excluded Policies; and
(b) the net result of all other activity with respect to the
Excluded Policies for periods beginning on or after April 1, 1996,
through December 31, 1996;
shall be transferred by the CORPORATION to CEDANT via wire transfer to an
account designated by CEDANT. The calculation of such amount is set forth below:
(1) Liabilities as of 3/31/96 equal to: $3,551,996
reserves as agreed upon as of 3/31/96, including
reserves for losses incurred but not reported 3,597,761
less due premium as of 3/31/96 (45,765)
(2) Plus investment income on the liabilities for the period
4/1/96 through 12/31/96, based on
7% interest rate per year 186,480
(3) Plus activity on the business from 4/1/96 through 12/31/96, as
defined by the following
calculation: 1,497,472
premiums collected net of reinsurance 2,174,167
less benefits paid net of reinsurance (417,035)
less commissions paid net of reinsurance (205,306)
less premium tax (2.5% of premiums net
of reinsurance) (54,354)
less due and unpaid reinsurance amounts
as of 12/31/96 0
(4) Less amounts due under Services Agreement (434,833)
----------------
(5) TOTAL TRANSFER AMOUNT (1+2+3 - 4) $4,801,115
In all other respects not inconsistent herewith, said Agreement shall
remain unchanged.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed in duplicate.
THE OHIO LIFE INSURANCE EMPLOYERS REASSURANCE
COMPANY CORPORATION
By By
Name Name
Title Title
Date 3/26/97 Date 3/26/97
