0844-00-09
AMENDMENT
to the
FACULTATIVE AGREEMENT Effective September 1, 1991
between
CUNA MUTUAL LIFE INSURANCE COMPANY, Waverly, Iowa
(hereinafter called the "Ceding Company")
and
RGA REINSURANCE COMPANY, St. Louis, Missouri
(hereinafter called the "Reinsurer")
THIS AMENDMENT IS EFFECTIVE JANUARY 1, 2003
This Amendment is made as of the 1st day of January, 2003 (the "Effective Date")
by and between the Ceding Company and the Reinsurer. The parties hereto desire
to amend the Agreement as hereinafter provided.
1. PREMIUM ADMINISTRATION
The Premium due frequency for VUL Plans is hereby changed from monthly
in arrears to annually in advance. Article IV, Premium Administration
(effective January 1, 2002) is hereby revised and replaced by the
attached Article IV, Premium Administration (effective January 1, 2003).
II. All provisions of the Facultative Agreement not specifically modified
herein remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate as
follow:
CUNA MUTUAL LIFE INSURANCE COMPANY
By: /s/ Xxxxxxx X. Xxxxx By: /s/ Xxxxx X. Xxxxx
------------------------- -------------------------
Title: AVP, Assistant Secretary Title: AVP
------------------------- -------------------------
Date: 1/06/03 Date: 1/02/03
------------------------- -------------------------
RGA REINSURANCE COMPANY
By: /s/ Xxxxxx Xxxxx
-------------------------
Title: Vice President
Date: 12/17/2002
-----------------------
ARTICLE IV - PREMIUM ADMINISTRATION
(Effective January 1, 2003)
1. ACCOUNTING PERIOD AND PREMIUM DUE
---------------------------------
The Ceding Company will submit accounts to the Reinsurer, for reporting
new business, alterations, terminations, renewals, claims, and premium
due.
2. ACCOUNTING ITEMS
----------------
The accounts will contain a list of premiums due for the current
accounting period, explain the reason for each premium payment, show
premium subtotals adequate to use for premium accounting, including first
year and renewal year premiums and allowances. The account information
should provide the ability to evaluate retention limits, premium
calculations and to establish reserves.
3. REINSURANCE ADMINISTRATION REQUIREMENTS
---------------------------------------
Reinsurance Administration Requirements are as shown in Exhibits D and E.
4. PAYMENT OF BALANCES
-------------------
The Ceding Company will pay any balance due the Reinsurer, at the same
time as the account is rendered, but in all cases, by the Accounting and
Premium Due frequency as shown below. The Reinsurer will pay any balance
due the Ceding Company, at the same time as the account is confirmed,
however, at the latest, within thirty (30) days after receipt of the
statement of account. Should the Reinsurer be unable to confirm the
account in its entirety, the confirmed portion of the balance will be
paid immediately. As soon as the account has been fully confirmed, the
difference will be paid immediately by the debtor. All balances not paid
within thirty (30) days of the due date shown on the statement will be in
default.
Accounting Period: Monthly
Premium Due: Monthly in Arrears (for all UL Plans)
Annually in Advance (all Plans other
than UL Plans; adjustments will only
be made on a monthly basis when the
net amount at risk fluctuates by
amounts more than $5,000)
5. BALANCES IN DEFAULT
-------------------
The Reinsurer will have the right to terminate this Agreement, when
balances are in default, by giving ninety (90) days written notice of
termination to the Ceding Company. As of the close of the last day of
this ninety (90) day notice period, the Reinsurer's liability for all
risks reinsured under this Agreement will terminate. The first day of
this ninety (90) day notice of termination, resulting from default as
described in paragraph four of this Article, will be the day the notice
is received in the mail by the Ceding Company, or if the mail is not
used, the day it is delivered to the Ceding Company. If all balances in
default are received within the ninety (90) day time period, the
Agreement will remain in effect. The interest payable on balances in
default is stipulated as follows:
The Reinsurer reserves the right to charge interest at the Prime Rate
plus 2% as stated in the Wall Street Journal on the 1st business day
in January prior to the date of the premium when:
a. Renewal premiums are not paid within sixty (60) days of the
due date.
b. Premiums for new business are not paid within one hundred
twenty (120) days of the date the policy is issued.
ARTICLE IV - PREMIUM ADMINISTRATION (CONTINUED)
6. FLUCTUATIONS IN EXCHANGE RATES
------------------------------
If the premium due periods allowed for the payment of balances are
exceeded by either party, the debtor will bear the currency risk, in the
event of any subsequent alteration in the exchange rate, by more than
five percent, unless the debtor is not responsible for the delay in
payment.
