EXHIBIT 99.7(v)(iii)
AMENDMENT XX. 0 XX
XXXXXXXXX XXXXXXXXXXX XXXXXXXXX XX. 0000-00, DATED MAY 1, 2000
between
THE MANUFACTURERS LIFE INSURANCE COMPANY OF NORTH AMERICA
(CEDING COMPANY)
and
AXA CORPORATE SOLUTIONS LIFE REINSURANCE COMPANY
(REINSURER)
Effective as of the dates shown below, this Amendment is hereby attached to and
becomes a part of the above-described Reinsurance Agreement. It is mutually
agreed that:
1. Venture Vantage contracts issued from May 1, 2000 through July 31,
2000 and which subsequently elect to add the Enhanced Optional Death
Benefit described in Schedule A, will not be reinsured under this
Agreement. Reinsurance for these contracts will be provided under
Agreement No. 2000-21, effective August 15, 2000.
2. Effective January 29, 2001, the REINSURER agrees to cover, under the
terms of this Agreement, policies with rider election changes that
occur within 60 days of the contract issue date, as described in
Schedule A, Paragraph B.
3. Effective January 29, 2001, a rate adjustment factor shall be added
to the premium calculation described in Article V, applicable in the
event that the MNAR on a reinsured policy exceeds the individual
life liability limit stipulated under this Agreement.
4. Effective January 29, 2001, the GMDB asset-based minimum, maximum
and guaranteed reinsurance premiums are hereby revised for all new
Venture Vantage contracts issued on or after the effective date
shown herein. Note that Reinsurance Premiums for Venture Strategy
contracts continue unchanged.
5. Effective January 29, 2001, the Guaranteed Earnings Multiplier (GEM)
death benefit rider is hereby added as a covered product hereunder.
6. Effective January 29, 2001, Spousal Continuances are hereby added as
covered elections during the new business term of this Agreement and
under the terms described herein.
7. Effective January 29, 2001, the minimum premium provisions of this
Agreement described in Article V, Paragraph K, now apply in
combination with the minimum premium provisions of the complementary
living benefits agreement, No. 2001-41, as well as the reinsurance
agreements known as 2001-41NY, 2001-47 and 2001-48.
8. Effective May 1, 2000, the CEDING COMPANY and the REINSURER agree to
expand Article XVII to include:
a. provision allowing the CEDING COMPANY to assign the
reinsurance under this Agreement to another entity within the
CEDING COMPANY's corporate family, and
b. Parties to the Agreement language.
9. Effective January 15, 2002, the annual step rider reinsured
hereunder, BR002.99 is hereby replaced by rider BR010.00 which has
pro-rata withdrawal reductions.
To effect these changes, the following provisions of this Agreement are hereby
amended and replaced by the versions of each attached to this Amendment:
- ARTICLE II, COMMENCEMENT AND TERMINATION OF LIABILITY
- ARTICLE IV, NET AMOUNT AT RISK
- ARTICLE V, REINSURANCE PREMIUMS
- ARTICLE VI, REINSURANCE ADMINISTRATION
- ARTICLE XVII, MISCELLANEOUS
- SCHEDULE A, PLANS OF REINSURANCE
- SCHEDULE C, DATA LAYOUT (PAGE 2)
- EXHIBIT II, REINSURANCE PREMIUMS
This Amendment does not alter, amend or modify the Reinsurance Agreement other
than as set forth in this Amendment, and it is subject otherwise to all the
terms and conditions of the Reinsurance Agreement together with all Amendments
and supplements thereto.
THE MANUFACTURERS LIFE INSURANCE COMPANY OF NORTH AMERICA
By: _______________________________________________
Date:_______________________
Xxxxx Xxxxxx, Vice President and CFO
Attest: _______________________________________________
Xxxx Xxxxxxxxxx, Vice President
AXA CORPORATE SOLUTIONS LIFE REINSURANCE COMPANY
By: _______________________________________________
Date:_______________________
Xxxxxxx X. Xxxx, President
By: _______________________________________________
Xxxx Xxxxxxxxx, Assistant Vice President
Attest: _______________________________________________
Xxxxx Xxxxxxx, Assistant Vice President
ARTICLE II
COMMENCEMENT AND TERMINATION OF LIABILITY
A. On reinsurance ceded under the terms of this Agreement, the liability of
the REINSURER shall commence simultaneously with that of the CEDING
COMPANY. The liability under this Agreement will terminate either in
accordance with the Duration of Agreement provisions of this Agreement as
stated in Article XX, or, for an individual contract, upon the earliest of
the following occurrences defined in the contract(s) reinsured hereunder:
1. the date the owner elects to annuitize;
2. surrender or termination of the contract;
3. full withdrawal, including 1035 exchanges and qualified transfers
when the CEDING COMPANY terminates the contract and releases the
proceeds to the contract owner, beneficiary, annuitant or new
carrier;
4. the death of the owner or annuitant where such death triggers the
payment of a contractual death benefit except when spousal
continuance has been elected during the new business term of this
Agreement as defined in Article XX, Paragraph B. On spousal
continuance election the REINSURER's liability will be terminated
upon death of the spouse;
5. attainment of the maximum annuitization age or attained age 95, if
earlier;
6. the first day of the month following a withdrawal that causes the
Account Value of the contract to fall below
one-thousand-five-hundred dollars ($1,500). Once reinsurance
coverage ends for a specific contract, it cannot be reinstated under
this Agreement. This Paragraph C.6. applies only to contracts for
which the GMDB is reduced dollar-for-dollar for withdrawals.
B. The REINSURER shall be liable to reimburse claims only on those deaths
where the date of death is on or after May 1, 2000, in accordance with
Article VII.
ARTICLE IV
NET AMOUNT AT RISK
A. The MNAR (Mortality Net Amount at Risk) for each variable annuity contract
reinsured hereunder shall be equal to the following:
MNAR (Mortality Net Amount at Risk) = VNAR + VSCNAR + FSCNAR + EEMNAR
where:
- VNAR (Variable Net Amount at Risk) = Maximum (a, b) multiplied by
the quota-share percentage (defined in Schedule A) where:
a = (Contractual Death Benefit - Account Value)
b = 0
- VSCNAR (Variable Surrender Charge Net Amount at Risk) = (Surrender
Charges allocated to Variable Account) multiplied by the quota-share
percentage
- FSCNAR (Fixed Surrender Charge Net Amount at Risk) = (Surrender
Charges allocated to Fixed Account) multiplied by the quota-share
percentage
- The surrender charge will be allocated to the Variable Account and
the Fixed Account in proportion to the Variable Account value and
the Fixed Account value at the end of the month.
- EEMNAR (Earnings Enhancement Mortality Net Amount at Risk) = X% *
Max (a, b) multiplied by the quota-share percentage where:
X % varies by issue age as described under the GEM Death Benefit
Reinsured section of Schedule A
a = (Account Value - Net Purchase Payments) but no greater than
Net Purchase Payments
b = 0
B. Spousal Continuances (as described in Schedule A)
The REINSURER will reimburse the CEDING COMPANY for its quota share of the
FSCNAR + VSCNAR realized upon death consistent with the manner in which
the CEDING COMPANY waives the surrender charges when death benefit is paid
out.
Also covered under this Agreement are surrender charges arising from
additional premium deposits contributed by the spouse to the contract on
or after the spousal continuance date.
In no event will the REINSURER reimburse surrender charges arising from
the same premium deposits more than once.
C. The death benefit and the surrender charges will be as described in the
variable annuity contract forms specified in Schedule A.
ARTICLE V
REINSURANCE PREMIUMS
A. The total reinsurance premium is equal to the sum of the variable account
reinsurance premium, the fixed account reinsurance premium and the GEM
Rider, if elected, reinsurance premium.
B. The fixed account reinsurance premium is a monthly YRT rate which is
applied to the average FSCNAR over the reporting period on a life-by-life
basis, and is equal to one-twelfth (1/12th) of one-hundred percent (100%)
of the 1994 Variable Annuity MGDB Mortality Table (Exhibit I) which is the
1994 GAM Basic Table increased by ten percent (10%) for margins and
contingencies, without projection.
C. The variable account reinsurance premium is a monthly YRT rate which is
applied to the average (VNAR + VSCNAR) over the reporting period on a
life-by-life basis, and is equal to one-twelfth (1/12th) of one-hundred
percent (100%) of the 1994 Variable Annuity MGDB Mortality Table (Exhibit
I) which is the 1994 GAM Basic Table increased by ten percent (10%) for
margins and contingencies, without projection. The reinsurance premium is
subject to minimum and maximum asset-based premium rate levels which vary
by issue age and cumulative deposits.
D. The minimum asset-based premium rates shall be applied to the greater of
the average aggregate GMDB value minus the average aggregate fixed account
value, and the average aggregate variable account value in force over the
reporting period multiplied by the quota-share percentage reinsured by the
REINSURER. The reporting period is assumed to be monthly.
E. The maximum asset-based premium rates shall be applied to the greater of
the average aggregate GMDB and average aggregate total account value in
force over the reporting period multiplied by the quota-share percentage
reinsured by the REINSURER. The reporting period is assumed to be monthly.
F. The GEM Rider asset-based premium rates shall be applied to the average
aggregate account value in force with the GEM Rider over the reporting
period multiplied by the quota-share percentage reinsured by the
REINSURER.
G. The annualized reinsurance premium rates are shown in Exhibit II and are
expressed in terms of basis points. In practice, they shall be applied on
a monthly basis by utilizing one-twelfth (1/12th) of the annualized rates.
H. Once cumulative deposits reach four-million dollars ($4,000,000), a
contract enters the larger size reinsurance premium structure shown in
Exhibit II and remains there for the duration of coverage.
I. When the MNAR (excluding EEMNAR) for an individual life exceeds the
applicable individual life liability limit described in Article I, all YRT
premiums, as described in Paragraph B and Paragraph C of this Article,
shall be reduced by the ratio of the applicable individual life liability
limit to the total MNAR (excluding EEMNAR) for that life.
ARTICLE V - REINSURANCE PREMIUMS
(continued)
J. The YRT rate and the minimum/maximum asset-based premium rates shall be
based on the oldest person of a multiple life status.
K. The total reinsurance premium due and payable in the first month shall at
least equal one-thousand-five-hundred dollars ($1,500). Thereafter, the
minimum reinsurance premium that is due and payable shall increase by
one-thousand-two-hundred dollars ($1,200) for each month after the first
month until it reaches seven-thousand-five-hundred dollars ($7,500) six
months after the Effective Date of this Agreement. The total reinsurance
premium that is due and payable in any month thereafter shall be at least
seven-thousand-five-hundred dollars ($7,500). The minimum premium
provisions of this Agreement shall be applied in combination with the
minimum premium provisions of the complementary living benefits agreement,
No. 2001-41, as well as Agreement 2001-41NY, Agreement No. 2001-47, and
Agreement No. 2001-48.
L. For Spousal Continuances, the new reinsurance premium rate applied shall
be based off the attained age of the surviving spouse at the time of
election of spousal continuance.
M. The reinsurance premium structure described above shall remain in effect
as long as the death benefit design, contract fees (excluding investment
fees which are subject to provisions of Article XV, Contract and Program
Changes), mortality and expense charges, administration fees and surrender
charges in effect at the inception of this Agreement remain unchanged.
N. Premium Recalculation:
1. If the CEDING COMPANY is unable to offer the Enhanced Benefit before
August 1, 2000, for Venture Vantage, or before June 1, 2000 for
Venture Strategy, but does offer it before January 1, 2001, the
REINSURER will provide coverage under this Agreement but reserves
the right to recalculate the reinsurance premiums applicable to this
benefit. The recalculated premiums may not increase above 20% of the
values shown in Exhibit II.
2. The CEDING COMPANY must notify the REINSURER at least two weeks
prior to the scheduled rollout date of the Enhanced Benefit in order
for the REINSURER to determine final prices for the Enhanced
Benefit.
ARTICLE VI
REINSURANCE ADMINISTRATION
A. Within thirty (30) days of the end of each calendar month, the CEDING
COMPANY will furnish the REINSURER with a seriatim electronic report as
detailed in Schedule C, for each contract specified in Schedule A, valued
as of the last day of that month. The CEDING COMPANY will also provide
separate reports for the smaller contractholders (i.e., <$4 million) and
the larger contractholders (i.e., $4 million or more)
B. Additionally, within thirty (30) days of the end of each calendar month,
the CEDING COMPANY will furnish the REINSURER with a separate Summary
Statement containing the following:
1. reinsurance premiums due to the REINSURER separate for each premium
class as shown in Exhibit II
2. benefit claim reimbursements due to the CEDING COMPANY in total and
broken down by VNAR, VSCNAR and FSCNAR and EEMNAR, and
3. month end date for the period covered by the Summary Statement.
C. Payments between the CEDING COMPANY and the REINSURER shall be paid net of
any amount due and unpaid under this Agreement. If the net balance is due
to the REINSURER, the amount due shall be remitted with the Summary
Statement, but no later than thirty (30) days from the month end date for
the period covered by the Summary Statement. If the net balance is due to
the CEDING COMPANY, the REINSURER shall remit the amount to the CEDING
COMPANY within ten (10) days of receipt of the SUMMARY STATEMENT.
D. Furthermore, the REINSURER will use the summary data in Schedule C to
calculate and monitor its maximum annual aggregate VNAR liability
throughout the calendar year. Upon the receipt of the final report for the
calendar year, the REINSURER will "true-up" benefit claim reimbursements,
if necessary, from the prior calendar year.
E. Other
1. The REINSURER reserves the right to charge interest [if (a) or (b)
below occur] based on the ninety (90) day Federal Government
Treasury Xxxx as first published by the Wall Street Journal in the
month following the end of the billing period plus fifty (50) basis
points. The method of calculation shall be simple interest (360-day
year) and applied as follows:
(a) if premiums are not paid within sixty (60) days of the due
date shown on the statement
(b) if premiums for first year business are not paid within
one-hundred-eighty (180) days of the effective date of the
policy
2. If claims are not paid within sixty (60) days of the REINSURER's
receipt of satisfactory proof of claim liability, the CEDING COMPANY
reserves the right to charge interest, based on the ninety (90) day
Federal Government Treasury Xxxx as first published by the Wall
Street Journal in the month following the end of the billing period
plus fifty (50) basis points. The method of calculation shall be
simple interest (360-day year).
ARTICLE VI - REINSURANCE ADMINISTRATION
(continued)
3. The REINSURER will have the right to terminate this Agreement when
premium payments are more than ninety (90) days past due 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
associated with the defaulted premiums under this Agreement will
terminate. The first day of the ninety (90) day notice of
termination 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 premiums in default are
received within the ninety (90) day time period, the Agreement will
remain in effect.
ARTICLE XVII
MISCELLANEOUS
A. This Agreement shall constitute the entire Agreement between the parties
with respect to business reinsured hereunder. There is no understanding
between the parties other than as expressed in this Agreement and any
change or modification of this Agreement shall be null and void unless
made by Amendment to the Agreement and signed by both parties.
B. Any notice or communication given pursuant to this Reinsurance Agreement
must be in writing and 1) delivered personally, 2) sent by facsimile or
other similar transmission to a number specified in writing by the
recipient, 3) delivered by overnight express, or 4) sent by Registered or
Certified Mail, Postage Prepaid, Return Receipt Requested, as follows:
If to CEDING COMPANY: The Manufacturers Life Insurance Company
of North America
000 Xxxxxxxx Xxxxxx, Xxxxx 000
Xxxxxx, XX 00000-0000
Attn: Chief Financial Officer
If to the REINSURER: AXA Corporate Solutions Life Reinsurance Company
00 Xxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Life Reinsurance Treaty Officer
All notices and other communications required or permitted under this
Reinsurance Agreement that are addressed as provided in this Section will
1) if delivered personally or by overnight express, be deemed given upon
delivery; 2) if delivered by facsimile transmission or other similar
transmission, be deemed given when electronically confirmed, and 3) if
sent by Registered or Certified mail, be deemed given when marked Postage
Prepaid by the sender's terminal. Any party from time-to-time may change
its address, but no such notice of change will be deemed to have been
given until it is actually received by the party sought to be charged with
the contents thereof.
C. This Agreement shall be binding to the parties and their respective
successors and permitted assignees. This Agreement may not be assigned by
either party without the written consent of the other. Such consent shall
not be unreasonably withheld. It is understood that the CEDING COMPANY, as
of the writing of this Agreement, is contemplating an internal
consolidation of its business that could result in the assignment of this
Agreement to another entity within the CEDING COMPANY's corporate family.
Said assignment shall be considered approved by the REINSURER.
D. This Agreement is an indemnity reinsurance agreement solely between the
CEDING COMPANY and the REINSURER. The acceptance of reinsurance hereunder
shall not create any right or legal relation whatever between the
REINSURER and the annuitant, owner, beneficiary or any other party under
any contracts of the CEDING COMPANY which may be reinsured hereunder. The
CEDING COMPANY shall be and remain solely liable to such parties under
such contracts reinsured hereunder.
SCHEDULE A
PLANS OF REINSURANCE
A. Quota-Share Percentage: 100%
B. Issue Dates:
- Policies issued on or after May 1, 2000 (except policies issued
between May 1, 2000 and July 31, 2000 and that subsequently elect to
add the Enhanced Benefits described under Paragraph C, will be
covered under Agreement No. 2000-21).
- Contractholders may, at their sole discretion, elect, revoke or make
changes to their contract within sixty (60) days (hereinafter known
as the 60-day window) of the contract issue date. The election or
termination of any optional rider within the 60-day window will be
retroactive to date of issue, and will be covered under this
Agreement. All reinsurance premiums and claims will be trued up
accordingly. The CEDING COMPANY will identify the policies covered
under the 60-day window by submitting policyholder information on a
separate data form. The CEDING COMPANY does not plan to market or
develop a program highlighting this 60-day window. (Note: A maximum
of 15% of contracts reported in any month will be covered under the
60-day window for contracts that have passed their statutory
free-look period. There will be no limit for contracts that are
still within their statutory free-look period.)
C. GMDB Reinsured:
- Venture Vantage Basic Benefit for issue ages 0-80: One-time 9-year
ratchet, frozen thereafter and reduced for withdrawals on a
dollar-for-dollar basis
- Venture Vantage Enhanced Benefit (for Rider No. BR002.99) for issue
ages 0-80: Annual ratchet to attained age 80; frozen thereafter and
reduced for withdrawals on a dollar-for-dollar basis
- Venture Vantage Enhanced Benefit (for Rider No. BR010.00) for issue
ages 0-80: Annual ratchet to attained age 80; frozen thereafter and
reduced proportionately for withdrawals
- Venture Strategy Basic Benefit for issue ages 0-85: Return of Net
Considerations reduced proportionately for withdrawals
- Venture Strategy Enhanced Benefit for issue ages 0-80: Annual
ratchet to attained age 80; frozen thereafter and reduced
proportionately for withdrawals
SCHEDULE A
PLANS OF REINSURANCE
(continued)
D. Guaranteed Earnings Multiplier (GEM) Death Benefit Reinsured:
The REINSURER shall reinsure the net amount at risk (EEMNAR)
associated with the GEM death benefit rider. The GEM rider provides
an additional death benefit equal to 40% of the contract earnings
for issue ages 0 - 69 and equal to 25% of the contract earnings for
issue ages 70 - 80. The maximum GEM benefit is equal to the
applicable 40% or 25% of net purchase payments.
E. Spousal Continuances:
A Spousal Continuation occurs if the deceased owner's spouse is the
beneficiary. The surviving spouse continues the contract (including
any optional benefits if these benefits had been elected by the
deceased owner) as the new owner (referred to as a spousal
continuation). In such a case, the distribution rules applicable
when a contract owner dies will apply when the spouse, as the owner,
dies. In addition, a death benefit will be paid upon the death of
the spouse. For purposes of calculating the Death Benefit payable
upon the death of the surviving spouse, the death benefit paid upon
the first owner's death will be treated as a payment to the
contract. In addition, all payments made and all amounts deducted in
connection with partial withdrawals prior to the date of the first
owner's death will not be considered in determination of the Death
Benefit. In determination of the Death Benefit, the Anniversary
Values for all prior Contract Anniversaries will be set to zero as
of the date of the first owner's death.
The REINSURER agrees to cover Spousal Continuances that occur during
the new business term of this Agreement, and will treat them as new
issues to the extent that, at time of continuance, the attained age
of the surviving spouse satisfies the issue age restrictions and
benefit limitations under the Related Contracts covered by this
Agreement.
F. Related Contracts:
- Venture Vantage VA (policy forms: Venture.015, Venture.015.97,
Venture.016, Venture.017)
- Venture Strategy VA (policy forms: Venture.025, Venture.026,
Venture.025.00, Venture.027)
- GEM Rider Form No. BR009.00 and BR009.00G (added as of January 29,
2001)
SCHEDULE C
REQUIRED DATA AND SUGGESTED DATA LAYOUT
(Page 2 of 3)
FIELD DESCRIPTION COMMENTS
GMDB/EEB SECTION (If applicable)
--------------------------------
Mortality Risk Definition Indicator AV = VNAR; CV = VNAR + SCNAR
Death Claim Trigger A = Annuitant, O = Owner, 1 = 1st to die, 2 = 2nd to die
(e.g., A2 = payable upon death of second of joint annuitants)
Current Ratchet Value If Applicable
Current Reset Value If Applicable
Current Rollup Value If Applicable
Current Return of Premium Value If Applicable
Minimum Guaranteed Death Benefit
Contract Death Benefit Greater of Account Value and Minimum Guaranteed Death Benefit
Effective Date of the Rider
Account Value as of the Effective Date
of the Rider
Mortality Risk VNAR Max [Contractual Death Benefit - Account Value), 0]
SCNAR Surrender Charge, if applicable
EEMNAR T%(AV less Net Purchase Payments), if applicable
Earnings AV less Net Purchase Payments
Earnings Cap If Applicable
Tax Percentage If Applicable
GMIB SECTION (If applicable)
----------------------------
GMIB Indicator Y = benefit elected, N = benefit not elected, NA = not applicable
Income Benefit Elected 01 = option 1, 02 = option 2, etc.
Expiration of Waiting Period YYYYMMDD
GMIB Annuitization Date YYYYMMDD - actual date
Most Recent GMIB Step-up / Reset Date YYYYMMDD, if applicable
Cancellation Date YYYYMMDD, if applicable
Pricing Cohort Indicator
IBB Amount
GMIB IBNAR Amount Calculated using an individual life annuity form with 10
years certain
Treasury Rate Used in IBNAR calculation
GMAB SECTION (If applicable)
----------------------------
GMAB Indicator Y = benefit elected, N = benefit not elected, NA = not applicable
Accumulation Benefit Elected 01 = option 1, 02 = option 2, etc.
Maturity Date YYYYMMDD
Most Recent GMAB Step-up / Rollover Date YYYYMMDD, if applicable
Cancellation Date YYYYMMDD, if applicable
Pricing Cohort Indicator
GMAB Guaranteed Value Current Value
GMAB NAR Max [ (GMAB Guaranteed Value - Account Value) , 0]
Account Value Current total value
Surrender Charge If reinsured
Cumulative Deposits Total premiums
Cumulative Withdrawals Total withdrawals
Net Purchase Payments Total premiums less total withdrawals (proportional
adjustment)
Deposits made in quarter of death dollar value
Quota Share reinsured percentage
EXHIBIT II
REINSURANCE PREMIUMS
FOR VENTURE VANTAGE CONTRACTS EFFECTIVE JANUARY 29, 2001 AND THEREAFTER
-----------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------
FOR CONTRACTS WITH CUMULATIVE DEPOSITS Reinsurance Premiums Guaranteed
less than $4 MILLION:
-----------------------------------------------------------------------------------------------------------------
Issue Ages Minimum Maximum* Maximum
---------- ------- -------- -------
One-time 9-Year Ratchet 0-49 3.50 6.25 13.50
50-59 7.50 13.50 29.00
60-69 15.00 27.00 56.00
70-80 31.00 56.00 114.00
Annual Ratchet 0-49 6.75 12.25 26.50
50-59 12.00 23.50 49.00
60-69 21.00 40.75 83.50
70-80 38.00 71.75 145.00
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------
FOR CONTRACTS WITH CUMULATIVE DEPOSITS Reinsurance Premiums Guaranteed
greater than or equal to $4 MILLION:
-----------------------------------------------------------------------------------------------------------------
Issue Ages Minimum Maximum* Maximum
---------- ------- -------- -------
One-time 9-Year Ratchet 0-49 3.50 8.00 18.00
50-59 7.50 17.50 37.00
60-69 15.00 35.00 72.00
70-80 31.00 72.00 146.00
Annual Ratchet 0-49 6.75 17.00 36.00
50-59 12.00 33.00 68.00
60-69 21.00 57.00 116.00
70-80 38.00 100.00 202.00
-----------------------------------------------------------------------------------------------------------------
Continued on next page....
EXHIBIT II
REINSURANCE PREMIUMS
(Continued)
FOR VENTURE VANTAGE CONTRACTS EFFECTIVE MAY 1, 2000 THROUGH JANUARY 28, 2001
----------------------------------------------------------------------------
FOR CONTRACTS WITH CUMULATIVE DEPOSITS less than $4 MILLION:
-------------------------------------------------------------------------------------------------------------------
FOR CONTRACTS WITH CUMULATIVE DEPOSITS Reinsurance Premiums Guaranteed
less than $4 MILLION:
-------------------------------------------------------------------------------------------------------------------
Issue Ages Minimum Maximum* Maximum
---------- ------- -------- -------
One-time 9-Year Ratchet 0-49 3.50 6.25 13.50
50-59 7.75 13.50 29.00
60-69 15.50 27.00 56.00
70-80 32.00 56.00 114.00
Annual Ratchet 0-49 7.50 13.00 28.00
50-59 14.75 25.50 53.00
60-69 25.25 43.75 89.50
70-80 44.50 77.50 157.00
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
FOR CONTRACTS WITH CUMULATIVE DEPOSITS Reinsurance Premiums Guaranteed
greater than or equal to $4 MILLION:
-------------------------------------------------------------------------------------------------------------------
Issue Ages Minimum Maximum* Maximum
---------- ------- -------- -------
One-time 9-Year Ratchet 0-49 3.50 8.00 18.00
50-59 7.75 17.50 37.00
60-69 15.50 35.00 72.00
70-80 32.00 72.00 146.00
Annual Ratchet 0-49 7.50 17.00 36.00
50-59 14.75 33.00 68.00
60-69 25.25 57.00 116.00
70-80 44.50 100.00 202.00
-------------------------------------------------------------------------------------------------------------------
Continued on next page....
EXHIBIT II
REINSURANCE PREMIUMS
(Continued)
FOR VENTURE STRATEGY CONTRACTS EFFECTIVE MAY 1, 2000 AND THEREAFTER
-------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
FOR CONTRACTS WITH CUMULATIVE DEPOSITS Reinsurance Premiums Guaranteed
less than $4 MILLION:
-------------------------------------------------------------------------------------------------------------------
Issue Ages Minimum Maximum* Maximum
---------- ------- -------- -------
Return of Net Considerations 0-49 1.75 3.00 7.00
50-59 3.25 5.50 13.00
60-69 6.75 11.75 25.50
70-80 16.00 28.00 58.00
80-85 26.00 45.50 93.00
Annual Ratchet 0-49 6.75 12.00 26.00
50-59 11.50 20.00 42.00
60-69 17.00 29.75 61.50
70-80 25.50 45.50 93.00
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
FOR CONTRACTS WITH CUMULATIVE DEPOSITS Reinsurance Premiums Guaranteed
greater than or equal to $4 MILLION:
-------------------------------------------------------------------------------------------------------------------
Issue Ages Minimum Maximum* Maximum
---------- ------- -------- -------
Return of Net Considerations 0-49 1.75 4.00 10.00
50-59 3.25 7.25 16.50
60-69 6.75 15.25 32.50
70-80 16.00 36.00 74.00
80-85 26.00 58.50 119.00
Annual Ratchet 0-49 6.75 15.25 32.50
50-59 11.50 26.00 54.00
60-69 17.00 38.25 78.50
70-80 25.50 57.50 117.00
-------------------------------------------------------------------------------------------------------------------
Continued on next page....
EXHIBIT II
REINSURANCE PREMIUMS
(Continued)
FOR CONTRACTS EFFECTIVE JANUARY 29, 2001 AND THEREAFTER
-------------------------------------------------------
-------------------------------------------------------------------------------
GEM RIDER Reinsurance Guaranteed
-------------------------------------------------------------------------------
Issue Ages Premiums* Maximum
---------- -------
0-49 5.50 11.00
50-59 11.75 24.50
60-69 22.00 45.00
70-80 27.00 56.00
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*The current maximum premium rate (or in the case of the GEM Rider, the current
Reinsurance Premium rate) shall be in effect for a minimum of twenty (20) years
from the Effective Date of this Reinsurance Agreement. Thereafter, it may be
increased based on expected experience but not beyond the stated guaranteed
maximum rates shown.
