Amendment #2 to the AUTOMATIC AND FACULTATIVE
Amendment #2
to the
AUTOMATIC AND FACULTATIVE
YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE September 30, 2002
Between
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
(THE COMPANY)
And
MUNICH AMERICAN REASSURANCE COMPANY
(THE REINSURER)
The parties hereby agree to the following:
SCHEDULE B, Section 1, STANDARD ANNUAL REINSURANCE PREMIUMS, shall be replaced by the following:
|
|
1. |
STANDARD ANNUAL REINSURANCE PREMIUMS |
The standard annual reinsurance premiums per $1,000 of net amount at risk will be the product of the reinsurance factor, a grading factor and the June 14, 2001 version of the sex and smoker distinct, age last birthday, 2001 Valuation Basic Table attached to this Schedule B.
The reinsurance factors vary by underwriting basis (Fully Underwritten, Simplified Issue, Guaranteed Issue) and underwriting class (Select Preferred, Preferred and Standard). The factors for the Select Preferred and Preferred Classes will be applied to the Non-Smoker Valuation Basic Table rates, and the factors for the Standard Class will be applied to the Smoker rates.
The standard annual reinsurance factors for (1) all cessions of automatic reinsurance and (2) cessions of facultative reinsurance in the amount of $10 million or less, are shown in the following tables:
For policies issued 12/31/2006 and earlier:
|
Underwriting Basis |
Select Preferred (non-smoker) |
Preferred (non-smoker) |
Standard (smoker) |
|
Fully Underwritten |
.570 |
.630 |
.750 |
|
Simplified Issue |
.540 |
.630 |
.690 |
|
Guaranteed Issue |
.640 |
.730 |
.800 |
The standard annual reinsurance factors for cessions of facultative reinsurance in excess of $10 million, are shown in the following table:
|
Underwriting Basis |
Select Preferred (non-smoker) |
Preferred (non-smoker) |
Standard (smoker) |
|
Fully Underwritten |
.627 |
.693 |
.825 |
|
Simplified Issue |
.594 |
.693 |
.759 |
|
Guaranteed Issue |
.768 |
.876 |
.960 |
Y-PS3-2002-MARC-PLAZ-2
For policies issued 1/1/2007 and later:
|
Underwriting Basis |
Select Preferred (non-smoker) |
Preferred (non-smoker) |
Standard (smoker) |
|
Fully Underwritten |
.630 |
.690 |
.720 |
|
Simplified Issue |
.580 |
.670 |
.670 |
|
Guaranteed Issue |
.690 |
.770 |
.730 |
The standard annual reinsurance factors for cessions of facultative reinsurance in excess of $10 million, are shown in the following table:
|
Underwriting Basis |
Select Preferred (non-smoker) |
Preferred (non-smoker) |
Standard (smoker) |
|
Fully Underwritten |
.690 |
.760 |
.790 |
|
Simplified Issue |
.640 |
.740 |
.740 |
|
Guaranteed Issue |
.830 |
.920 |
.880 |
For all policies:
The grading factors vary by underwriting basis (Fully Underwritten, Simplified Issue, Guaranteed Issue) and duration and are shown in the following table:
|
Policy Year |
Fully Underwritten |
Simplified Issue |
Guaranteed Issue |
|
1 |
100.00% |
150.00% |
175.00% |
|
2 |
100.00% |
147.50% |
171.25% |
|
3 |
100.00% |
145.00% |
167.50% |
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4 |
100.00% |
142.50% |
163.75% |
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5 |
100.00% |
140.00% |
160.00% |
|
6 |
100.00% |
137.50% |
156.25% |
|
7 |
100.00% |
135.00% |
152.50% |
|
8 |
100.00% |
132.50% |
148.75% |
|
9 |
100.00% |
130.00% |
145.00% |
|
10 |
100.00% |
127.50% |
141.25% |
|
11 |
100.00% |
125.00% |
137.50% |
|
12 |
100.00% |
122.50% |
133.75% |
|
13 |
100.00% |
120.00% |
130.00% |
|
14 |
100.00% |
117.50% |
126.25% |
|
15 |
100.00% |
115.00% |
122.50% |
|
16 |
100.00% |
112.50% |
118.75% |
|
17 |
100.00% |
110.00% |
115.00% |
|
18 |
100.00% |
107.50% |
111.25% |
|
19 |
100.00% |
105.00% |
107.50% |
|
20 |
100.00% |
102.50% |
103.75% |
|
21+ |
100.00% |
100.00% |
100.00% |
Y-PS3-2002-MARC-PLAZ-2
Y-PS3-2002-MARC-PLAZ-2
In witness of the above, THE COMPANY and THE REINSURER have by their respective officers executed and delivered this Agreement in duplicate on the dates indicated below, with an effective date of January 1, 2007.
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THE PRUDENTIAL INSURANCE COMPANY OF AMERICA |
MUNICH AMERICAN REASSURANCE COMPANY |
|
By: |
____________________________ |
By: |
______________________________ |
|
Title: ____________________________ |
Title: ______________________________ |
|
Date: ____________________________ |
Date: _____________________________ |
|
By: |
____________________________ |
By: |
______________________________ |
|
Title: ____________________________ |
Title: ______________________________ |
|
Date: ____________________________ |
Date: ______________________________ |
Y-PS3-2002-MARC-PLAZ-2
