EXHIBIT 99.7B
BMA
A MEMBER OF THE GENERALI GROUP
FACULTATIVE
REINSURANCE AGREEMENT
BETWEEN
FARM BUREAU LIFE INSURANCE COMPANY
W. Des Moines, Iowa
HEREINAFTER REFERRED TO AS THE CEDING COMPANY
AND
BUSINESS MEN'S ASSURANCE COMPANY OF
KANSAS CITY, MISSOURI
HEREINAFTER REFERRED TO AS BMA
[GRAPHIC]
FACULTATIVE TREATY
TABLE OF CONTENTS
ARTICLE PAGE
I BASIS OF REINSURANCE 1
II LIABILITY 1
III ADMINISTRATIVE REPORTING 2
IV PLANS OF REINSURANCE 4
V REINSURANCE PREMIUM 4
VI PREMIUM ACCOUNTING 4
VII OVERSIGHTS 5
VIII REDUCTIONS, TERMINATIONS AND CHANGES 5
IX INCREASE IN RETENTION AND RECAPTURES 6
X REINSTATEMENTS 7
XI EXPENSE OF ORIGINAL POLICY 7
XII CLAIMS 7
XIII TAX CREDITS 8
XIV DAC TAX 9
XV INSPECTION OF RECORDS 9
XVI INSOLVENCY 9
XVII ARBITRATION 10
XVIII PARTIES TO AGREEMENT 10
XIX ENTIRE CONTRACT 11
XX TERMINATION OF AGREEMENT 11
SCHEDULES
A SPECIFICATIONS
B BENEFITS AND NAR CALCULATIONS
C ADDITIONAL INFORMATION AND EXCEPTIONS
EXHIBITS
I RETENTION LIMITS
IA UNDERWRITING GUIDELINES
II REINSURANCE PREMIUMS
III COMMISSIONS AND ALLOWANCES (COINSURANCE)
ARTICLE I
BASIS OF REINSURANCE
REINSURANCE UNDER THIS AGREEMENT MUST BE INDIVIDUAL INSURANCE AS STATED IN
SCHEDULE A. THE CEDING COMPANY MAY REINSURE THE LIFE INSURANCE FOR THE PLANS AS
STATED IN SCHEDULE A AND ADDITIONAL BENEFITS LISTED IN SCHEDULE B.
1. A. An application for facultative reinsurance may include life insurance
with or without either disability waiver of premium or accidental
death or both. Only accidental death reinsurance may be submitted
without an application for life insurance.
B. Copies of all underwriting papers relating to the insurability of the
individual risk must be sent to BMA for facultative reinsurance. After
BMA has examined the underwriting papers, BMA will promptly notify the
CEDING COMPANY of the underwriting offer subject to additional
requirements, the final underwriting offer or declination. Any final
underwriting offer on the individual risk will automatically terminate
upon the earliest of:
(1) The date BMA receives notice of a withdrawal/cancellation by the
CEDING COMPANY, or
(2) 120 days after the date on which the offer was made, or
(3) The date specified in BMA's approval to extend the offer.
C. The minimum of insurance to be ceded shall be as stated in Schedule A.
ARTICLE II
LIABILITY
1. BMA's liability for facultative reinsurance shall not begin unless and
until the CEDING COMPANY has accepted BMA's final and unconditional written
offer on the application for reinsurance.
2. BMA's liability for reinsurance on individual risks shall terminate when
the CEDING COMPANY's liability terminates.
3. As long as the original policy remains in full force, all paid-up additions
and accumulated dividends shall be the liability of the CEDING COMPANY.
4. In no event shall reinsurance under this Agreement be in force unless the
insurance issued directly by the CEDING COMPANY is in force and is issued
and delivered in a jurisdiction in which the CEDING COMPANY is properly
licensed.
5. The payment of reinsurance premiums in accordance with this Agreement shall
be a condition precedent to the liability of BMA under reinsurance covered
by this Agreement.
ARTICLE III
ADMINISTRATIVE REPORTING
1. Self-Administered Business
Promptly after liability for insurance has begun on an individual risk, the
CEDING COMPANY shall have the responsibility of maintaining adequate
records for the administration of the reinsurance account and shall furnish
BMA with monthly reports, in substantial conformity with the following:
A. MONTHLY NEW BUSINESS REPORT
(1) policy number
(2) full name of insured
(3) date of birth
(4) sex
(5) issue age
(6) policy date
(7) underwriting classification
(8) plan of insurance
(9) amount issued
(10) amount reinsured
(11) automatic/facultative indicator
(12) state of residence
(13) table rating
(14) flat extra (amount + number of years)
(15) death benefit option (UL products)
(16) net amount at risk
(17) transaction code
(18) currency if other than U.S.
B. MONTHLY CONVERSION REPORT
The CEDING COMPANY shall furnish BMA with a separate listing of
reinsurance policies that are conversions or replacements to the
plan(s) as stated in Schedule A. The listing should provide the
following information:
(1) 1 through 18 in 1.A above
(2) original policy date
(3) original policy number
(4) attained age
(5) duration
(6) effective date if other than policy date
C. MONTHLY PREMIUM REPORT
At the end of each month the CEDING COMPANY shall send to BMA a
listing of all reinsurance policies issued or renewing during the past
month accompanied by the reinsurance premiums for such policies. The
listing should be segregated into first year issues and renewals and
should provide the following information:
(1) 1 through 18 in 1.A above
(2) current net amount at risk
(3) On Yearly Renewable Term treaties the net reinsurance premium due
for each reinsured policy with the premium for life and each
supplemental benefit separated.
(4) On Coinsurance treaties the gross reinsurance premium,
commissions, net reinsurance premium and other amounts (e.g.
dividends, cash surrender values) with premium separated for life
and each supplemental benefit.
All monthly lists shall be submitted to BMA no later than the 20th day
of the following month.
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D. MONTHLY CHANGE REPORT
The CEDING COMPANY shall report the details of all policy terminations
and changes on the reinsured policies. In addition to the data
indicated in 1.A, above, the report should provide information about
the nature, the effective date, and the financial result of the change
with respect to reinsurance.
E. MONTHLY POLICY EXHIBIT REPORT
A summary of new issues, terminations, recaptures, changes, death
claims and reinstatements during the month and the inforce reinsurance
at the end of the month.
F. QUARTERLY REPORTING
1. Within ten (10) days following the end of the quarter, the CEDING
COMPANY shall provide BMA with Premiums Due and Unpaid and
Commissions Due and Unpaid. This report may be in summary form
reporting totals by line of business with separate totals for
first year and renewals.
2. Within ten (10) days following the end of the quarter, the CEDING
COMPANY shall provide BMA with totals for the reserve liability
including statutory reserves by valuation basis segregated by
Yearly Renewable Term and Coinsurance.
G. ANNUAL INFORCE LISTING
Within ten (10) days after the close of the year, the CEDING
COMPANY shall furnish BMA a listing of reinsurance in force by
policy, by year of issue, segregated by Yearly Renewable Term and
Coinsurance and include statutory reserves for the same.
H. CLAIMS
Claims shall be reported as incurred on an individual basis.
2. Individual Cession Business
Promptly after liability for reinsurance has begun on the individual risk
the CEDING COMPANY shall send BMA a "Reinsurance Cession". Based on the
information on the "Reinsurance Cession", BMA will prepare and send the
CEDING COMPANY a "Reinsurance Cession Card". When reinsurance is reduced
or changed the CEDING COMPANY shall send BMA an "Amended Reinsurance
Cession".
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ARTICLE IV
PLANS OF REINSURANCE
1. Life reinsurance shall be ceded on the basis stated in Schedule A.
2. Copies of all life insurance policies, riders, rate manuals, benefit forms,
commuted value tables and cash value tables shall be provided by the
CEDING COMPANY to BMA, and BMA shall be promptly notified of any changes
therein.
ARTICLE V
REINSURANCE PREMIUMS
1. Life Reinsurance Premiums
A. Life Reinsurance Premiums Paid on a Coinsurance Basis
The CEDING COMPANY shall pay the current premium as shown in Exhibit
II based on the amount of life insurance reinsured, less the allowance
stated in Exhibit III. In addition, the CEDING COMPANY shall pay any
substandard table extra and flat extra premiums, but shall exclude the
policy fee. In the event the current premium is changed, BMA shall be
notified by the CEDING COMPANY immediately.
B. Life Reinsurance Premiums on a Yearly Renewable Term Basis
The life reinsurance premium on the net amount at risk shall be based
on rates shown in Exhibit II.
For those premiums less than the valuation net premium based on the
1980 CSO Table at 3% interest, only the latter premiums shall be
guaranteed. Should BMA increase the reinsurance premiums to the
valuation net premium based on the 1980 CSO Table at 3% interest, then
the CEDING COMPANY shall have the right to immediately recapture any
business affected by that change.
ARTICLE VI
PREMIUM ACCOUNTING
1. Payment of Reinsurance Premium.
A. The reinsurance premiums shall be paid to BMA using the rates shown in
Exhibit II.
B. On issues ceded by individual cessions BMA shall send the CEDING
COMPANY each month two copies of a statement listing first year and
renewal reinsurance premiums less refunds and allowances which are due
during the current month.
C. On self-administered business the CEDING COMPANY shall provide the
statement to BMA using the format described in Article III Self-
Administered Business.
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D. If a net reinsurance premium balance is payable to BMA the CEDING
COMPANY shall pay this balance within forty-five (45) days after the
close of that month. If the full balance is not received within the
forty-five (45) day period, the reinsurance premiums for reinsurance
risks listed on the statement, for which payment was not received,
shall be delinquent and the liability of BMA shall cease as of the
date reinsurance premium were due.
E. If a net reinsurance premium balance is payable to the CEDING COMPANY,
BMA shall pay this net balance within forty-five (45) days after the
monthly statement was sent to the CEDING COMPANY. If the monthly
statement has not been returned within forty-five (45) days, BMA shall
assume the CEDING COMPANY has verified and is in agreement with the
net balance and shall make payment to the CEDING COMPANY.
2. Currency.
The reinsurance premiums and benefits payable under this Agreement shall be
payable in the lawful money of the United States.
ARTICLE VII
OVERSIGHTS
If there is an unintentional oversight or clerical error in the administration
of this Agreement by either the CEDING COMPANY or BMA, it can be corrected
provided the correction takes place promptly after the time the oversight or
clerical error is first discovered. In that event, the CEDING COMPANY and BMA
will be restored to the position they would have occupied had such oversight or
clerical error not occurred.
ARTICLE VIII
REDUCTIONS, TERMINATIONS AND CHANGES
1. A. If in accordance with policy provisions the original policy is
converted to permanent life insurance, the life risk under the
converted policy which exceeds the amount of risk originally retained
by the CEDING COMPANY shall continue to be reinsured with BMA.
B. If there is a replacement where full underwriting evidence is not
required according to the CEDING COMPANY regular underwriting rules,
the life risk which exceeds the amount of risk originally retained by
the CEDING COMPANY shall continue to be reinsured with BMA.
C. If there is a replacement where full underwriting evidence is required
by the CEDING COMPANY, reinsurance may be ceded to BMA subject to
provisions in Article I.
2. Increases provided for contractually by the basic policy or rider, except
for Guaranteed Insurability Riders, shall be automatically reinsured by
BMA. Non-contractual increases shall be submitted as provided in Article I
and reinsurance on such increases shall be effective as provided in Article
II.
3. Subject to paragraph 2 of this Article, if the amount of insurance under a
policy or rider reinsured under this Agreement is increased or reduced, any
increase or reduction in reinsurance for the risk involved shall be
effective on the effective date of the increase or reduction in the amount
of insurance.
4. If any portion of the prior insurance retained by the CEDING COMPANY on an
individual life reduces or terminates, any reinsurance under this Agreement
based on the same life shall also be reduced or terminated. The CEDING
COMPANY shall reduce its reinsurance by applying the
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retention limits which were in effect at the time the policy was issued.
The "reinsurance adjustment due to lapse or reduction of previous
insurance" shall be effective on the same date as the lapse or reduction of
prior insurance.
The reinsurance to be terminated or reduced shall be determined in
chronological order by the date the risk was first reinsured. Two or more
policies issued the same date shall be considered one policy.
5. If the insurance for a risk is shared by more than one reinsurer, BMA's
percentage of the increased or reduced reinsurance shall be the same as
BMA's percentage of initial reinsurance of the individual risk.
6. If a risk reinsured under this Agreement is terminated, the reinsurance for
that risk shall be terminated as of the effective date of the termination.
7. If the CEDING COMPANY reduces the mortality rating, the reduction shall be
subject to the provisions of this Agreement as stated in Article I.
8. BMA shall refund all unearned reinsurance premiums not including policy
fees, less applicable allowances, arising from reductions, terminations
and changes as described in this Article.
ARTICLE IX
INCREASE IN RETENTION
AND RECAPTURES
1. If the CEDING COMPANY changes its retention limits, as listed in Exhibit
I, prompt written notice of the change shall be provided to BMA.
2. The CEDING COMPANY shall have the option of recapturing the reinsurance
under this Agreement in the event the CEDING COMPANY increases its
retention limit and the policies have been in force the required length of
time as stated in Schedule A. The CEDING COMPANY may exercise its option to
recapture by giving written notice to BMA within ninety (90) days after the
effective date of the increase in retention. If the recapture option is not
exercised within ninety days (90) days after the effective date of the
increase in retention the CEDING COMPANY may choose to recapture at a later
date. In that case, the date of the written notification to BMA shall
determine the effective date the recapture program shall begin.
3. If the CEDING COMPANY exercises its option to recapture, then:
A. The CEDING COMPANY shall reduce the reinsurance on all individual
risks on which it retained its maximum retention for the age and
mortality rating that was in effect at the time the reinsurance was
ceded.
B. The CEDING COMPANY shall increase its total amount of retained
insurance on the individual risk up to its new retention limit by
reducing the amount of reinsurance. If an individual risk is shared
by more than one reinsurer, BMA's percentage of the reduced
reinsurance shall be the same as BMA's initial percentage of
reinsurance on the individual risk.
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C. The reduction of reinsurance shall become effective on the later of
the following dates:
(1) The policy anniversary date immediately following the date the
recapture program is to begin as determined by paragraph 2 of
this Article;
(2) The number of years stated in Schedule A starting with the
"policy date."
4. No recapture shall be permitted for reinsurance on an individual risk if
(a) the CEDING COMPANY retained less than its maximum retention for the age
and mortality rating in effect at the time the reinsurance was ceded to
BMA, or if (b) the CEDING COMPANY did not retain any of the individual
risk.
ARTICLE X
REINSTATEMENT
If a policy reinsured under this Agreement lapses for nonpayment of premium or
is continued on the Reduced Paid-up or Extended Term Insurance basis, and is
reinstated in accordance with the terms of the policy and the CEDING COMPANY's
rules, the reinsurance on such policy shall automatically be reinstated by BMA
upon written notice of such reinstatement. The CEDING COMPANY shall pay BMA all
back reinsurance premiums.
ARTICLE XI
EXPENSE OF ORIGINAL POLICY
The CEDING COMPANY shall bear the expense of all medical examinations,
inspection fees, and other charges in connection with the issuance of the
insurance.
ARTICLE XII
CLAIMS
1. The CEDING COMPANY shall give BMA prompt notice of any claim. Copies of the
proofs obtained by the CEDING COMPANY together with a statement showing the
amount due or paid on such claim by the CEDING COMPANY shall be furnished
to BMA at the time payment is requested.
2. BMA shall accept the decision of the CEDING COMPANY in settling the claim
and shall pay its portion to the CEDING COMPANY upon receipt of proof that
the CEDING COMPANY has paid the claimant. It is agreed, however, that if a
lesser amount at risk is retained by the CEDING COMPANY than the amount
ceded to BMA, the CEDING COMPANY shall consult with BMA concerning its
investigation and/or payment of the claim, although the final decision
shall be that of the CEDING COMPANY.
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3. The CEDING COMPANY shall notify BMA of its intention to contest,
compromise, or litigate a claim involving reinsurance, and BMA shall pay
its share of the payment and specific claim expenses therein involved,
unless it declines to be a party to the contest, compromise, or litigation
in which case it shall pay the full amount of the reinsurance to the CEDING
COMPANY. "Claim expenses" shall be deemed to mean only the reasonable legal
and investigative expenses connected with the litigation or settlement of
claims. "Claim expenses" shall not include expenses incurred in connection
with a dispute or contest arising out of conflicting claims of entitlement
to policy proceeds which the CEDING COMPANY admits are payable or any
routine claim administrative expenses, Home Office or otherwise.
4. In the event the amount of insurance provided by a policy or policies
reinsured hereunder is increased or reduced because of a misstatement of
age or sex established after the death of the insured, BMA shall share in
the increase or reduction in the proportion that the net liability of BMA
bore to the sum of the retained net liability of the CEDING COMPANY and the
net liability of other reinsurers immediately prior to such increase or
reduction. The reinsurance with BMA shall be written from commencement on
the basis of the adjusted amounts using premiums and reserves at the
correct ages and sex. The adjustment for the difference in premiums shall
be made without interest.
5. It is understood and agreed that the payment of a death claim by BMA shall
be made in one sum regardless of the mode of settlement under the policy of
the CEDING COMPANY.
6. In no event shall BMA have any liability for any Extra-Contractual damages
which are assessed against the CEDING COMPANY as a result of acts,
omissions or course of conduct committed by the CEDING COMPANY or its
agents, other than a good faith decision to deny claim liability, in
connection with insurance reinsured under this Agreement. It is recognized
that there may be special circumstances involved which indicate that BMA
should participate in certain assessed damages. These circumstances are not
amenable to advance specific definition, but could include those situations
in which BMA was an active party in the act, omission or course of conduct
which ultimately results in the assessment of such damages. The extent of
such participation will be determined on a good faith assessment of
culpability in each case, but all factors being equal, the division of any
such assessment will generally be in the proportion of net liability borne
by each party.
7. If a claim is approved for disability waiver of premium insurance reinsured
under this Agreement, the CEDING COMPANY shall continue to pay reinsurance
premiums to BMA. BMA shall reimburse the CEDING COMPANY BMA's share of the
annual liability.
ARTICLE XIII
TAX CREDITS
In jurisdictions which impose premium taxes on the CEDING COMPANY without
deduction for reinsurance, BMA shall reimburse the CEDING COMPANY for taxes paid
on the amount of the reinsurance premiums on the basis shown in Schedule A,
unless BMA itself is required to pay a direct tax on such reinsurance premiums.
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ARTICLE XIV
DEFERRED ACQUISITION COSTS TAX
The CEDING COMPANY and BMA elect under Regulation 1.848-2(g)(8) to compute
"specified policy acquisition expense", as defined in section 848(c) of the
Internal Revenue Code, in the following manner:
The party with net positive consideration as determined under Reg. 1.848-2(f)
and Reg. 1.848-3 shall compute specified policy acquisition expenses without
regard to the general deductions limitation of section 848(c)(1) for each
taxable year.
The parties will exchange information pertaining to the aggregate amount of net
consideration as determined under Regs. 1.848-2(f) and 1.848-3, for all
reinsurance agreements in force between them, to insure consistency for the
purposes of computing specified policy acquisition expenses. BMA shall provide
the CEDING COMPANY with the amount of such net consideration for each taxable
year no later than May 1 following the end of such year. The CEDING COMPANY
shall advise BMA if it disagrees with the amounts provided, and the parties
agree to amicably resolve any difference. The amounts provided by BMA shall be
presumed correct if it does not receive a response from the CEDING COMPANY by
May 31.
BMA represents and warrants that it is subject to U.S. taxation under Subchapter
L of the Internal Revenue Code.
ARTICLE XV
INSPECTION OF RECORDS
BMA shall have the right, at any reasonable time, to inspect at the office of
the CEDING COMPANY, all books and documents which relate to reinsurance under
this Agreement.
ARTICLE XVI
INSOLVENCY
1. In the event of insolvency of the CEDING COMPANY, all reinsurance shall be
payable by BMA directly to the CEDING COMPANY or its liquidator, receiver,
or statutory successor, on the basis of the liability of the CEDING COMPANY
under the policy or policies reinsured, without diminution because of the
insolvency of the CEDING COMPANY.
2. It is agreed that the liquidator, receiver, or statutory successor of the
insolvent CEDING COMPANY shall give written notice to BMA of the pending of
a claim against the insolvent CEDING COMPANY on any policy reinsured within
a reasonable time after such claim is filed in the insolvency proceedings.
During the pendency of any such claim BMA may investigate such claim and
interpose, in the proceeding where such claim is to be adjudicated, any
defense or defenses which BMA may deem available to the CEDING COMPANY or
its liquidator, receiver, or statutory successor. The expense thus incurred
by BMA shall be chargeable, subject to court approval, against the
insolvent CEDING COMPANY as part of the expense of liquidation to the
extent of a proportionate share of the benefit which may accrue to the
CEDING COMPANY solely as a result of the defense undertaken by BMA.
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3. Where two or more reinsurers are participating in the same claim and a
majority in interest elect to interpose a defense to such claim, the
expense shall be apportioned in accordance with the terms of the Agreement
as though such expenses had been incurred by the CEDING COMPANY.
4. Any debts or credits, matured or unmatured, liquidated or unliquidated, in
favor of or against either the CEDING COMPANY or BMA with respect to this
agreement or with respect to any other claim of one party against the other
are deemed mutual debts or credits, as the case may be, and shall be set
off, and only the balance shall be allowed or paid.
ARTICLE XVII
ARBITRATION
1. It is the intention of the CEDING COMPANY and BMA that the customs and
practices of the insurance and reinsurance industry shall be given full
effect in the operation and interpretation of this Agreement. The parties
agree to act in all things with the highest good faith. However, if BMA
and the CEDING COMPANY cannot mutually resolve a dispute or claim which
arises out of or relates to this agreement, the dispute or claim shall be
settled through arbitration.
2. The arbitrators shall be impartial regarding the dispute, and shall base
their decision on the terms and conditions of this agreement plus, as
necessary, on the customs and practices of the insurance and reinsurance
industry.
3. There shall be three arbitrators who must be officers of life insurance
companies other than the parties to this agreement. Each of the parties to
this agreement shall appoint one of the arbitrators and these two
arbitrators shall select the third. If a party to this agreement fails to
appoint an arbitrator within thirty days after the other party to this
agreement has given notice of the arbitrator appointment, the American
Arbitration Association shall appoint an arbitrator for the party to this
Agreement that has failed to do so. Should the two arbitrators be unable to
agree on the choice of the third, then the appointment of this arbitrator
is left to the American Arbitration Association.
4. Except for the appointment of arbitrators in accordance with the provisions
of Section 3 of this Article, arbitration shall be conducted in accordance
with the Commercial Arbitration Rules of the American Arbitration
Association which are in effect on the date of delivery of demand for
arbitration. Arbitration shall be conducted in Kansas City, Missouri.
5. Each party to this agreement shall pay part of the arbitration expenses
which are apportioned to it by the arbitrators.
6. The award agreed by the arbitrators shall be final, and judgment may be
entered upon it in any court having jurisdiction.
ARTICLE XVIII
PARTIES TO AGREEMENT
This is an Agreement for indemnity reinsurance solely between the CEDING COMPANY
and BMA. The acceptance of reinsurance under this Agreement shall not create any
right or legal relation whatever between BMA and the insured, owner, or any
other party to or under any policy reinsured under this Agreement.
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ARTICLE XIX
ENTIRE CONTRACT
1. This agreement shall constitute the entire agreement between the parties
with respect to business being reinsured hereunder and that there are no
understandings between the parties other than those expressed in this
agreement.
2. Any change or modification to this agreement shall be null and void unless
made by addendum to this agreement signed by both parties.
ARTICLE XX
TERMINATION OF AGREEMENT
1. This Agreement may be terminated at any time by either party giving at
least 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
either company shall be the first day of the ninety-day (90) period.
2. The CEDING COMPANY shall continue to cede reinsurance and BMA shall
continue to accept reinsurance, as provided for by the terms of this
Agreement, until the date of termination.
3. All facultative reinsurance approved by BMA based upon applications
received prior to termination of this Agreement shall remain in effect
until its termination or expiration, unless the CEDING COMPANY and BMA
mutually decide otherwise.
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IN WITNESS WHEREOF, this agreement shall be effective with policies dated 12:01
A.M. March 14, 1996 is hereby executed in duplicate between
FARM BUREAU LIFE INSURANCE COMPANY
W. Des Moines, Iowa
referred to as the CEDING COMPANY
and
BUSINESS MEN'S ASSURANCE COMPANY OF AMERICA
Kansas City, Missouri
referred to as BMA,
and duly signed by both parties respective officers as follows:
THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY
THE PARTIES.
CEDING COMPANY
/s/ Xxxxx X. Xxxxx XXXXX X. XXXXX
-------------------- --------------------------------------
signature VICE PRESIDENT-CHIEF FINANCIAL OFFICER
title
/s/ Xxxx Xxxxxxxxx XXXX XXXXXXXXX
-------------------- ---------------------------------
signature FINANCIAL PLANNING VICE PRESIDENT
title
8/19/96
-------
date
BMA
/s/ Xxxxxxx X. Xxxxxxxxx Senior Vice President/Reinsurance
------------------------ ---------------------------------
signature title
Vice President Reinsurance Actuary
------------------------ ----------------------------------
signature title
8/28/1996
---------
date
AMENDMENT III
to the Facultative Umbrella Agreement
dated March 14, 1996
between
FARM BUREAU LIFE INSURANCE COMPANY
W. Des Moines, Iowa
(hereinafter called the CEDING COMPANY)
and
BUSINESS MEN'S ASSURANCE COMPANY OF AMERICA
Kansas City, Missouri
(hereinafter called the BMA)
IN WITNESS WHEREOF, this agreement shall be effective with policies dated March
14, 1996 and is hereby executed in duplicate between the parties addressed in
this Amendment and duly signed by both parties' respective officers as follows:
CEDING COMPANY
/s/ Xxxxx X. Xxxxx XXXXX X. XXXXX
-------------------- --------------------------------------
signature VICE PRESIDENT-CHIEF FINANCIAL OFFICER
title
/s/ Xxxx Xxxxxxxxx XXXX XXXXXXXXX
-------------------- ---------------------------------
signature FINANCIAL PLANNING VICE PRESIDENT
title
8/19/96
-------
date
BMA
/s/ Xxxxxxx X. Xxxxxxxxx Senior Vice President/Reinsurance
------------------------ ---------------------------------
signature title
Vice President Reinsurance Actuarial
------------------------ ------------------------------------
signature title
8/28/1996
---------
date
BMA REINSURANCE TREATY #: 199603 - 008-
AMENDMENT III
SCHEDULE A
SPECIFICATIONS
TYPE OF BUSINESS:
Life insurance issued by the CEDING COMPANY.
TYPE OF REPORTING:
Self-Administered
PLANS OF INSURANCE:
Universal Life
VUL
Universal Adult Term
Waiver of Charges
Guaranteed Purchase Option
Universal Cost of Living
BASIS OF REINSURANCE:
Facultative Coinsurance
MINIMUM CESSION:
$ 25,000
YEARS TO RECAPTURE:
Ten (10) Years
PREMIUM TAX REIMBURSEMENT:
Premium taxes are not reimbursed.
COINSURANCE CAPACITY:
$ 5,000,000
AMOUNTS OVER COINSURANCE CAPACITY:
As shown in 3/96 YRT treaty
BMA REINSURANCE TREATY #: 199603 - 008 -
AMENDMENT III
SCHEDULE B
UNIVERSAL LIFE - VUL
The CEDING COMPANY shall furnish BMA the net amount at risk on the
self-administered format described in Article III of the umbrella treaty.
UNIVERSAL COST OF LIVING
The increase will be handled as an increase in the net amount at risk on the
policy reinsured.
MONTHLY COST OF INSURANCE
Reinsurance premiums in the first year are zero. Renewal reinsurance premiums
to BMA are 90% of the gross disability premium charged the insured by the
CEDING COMPANY on the amount reinsured.
GUARANTEED INSURABILITY OPTION
This agreement includes coverage for a Guaranteed Insurability Option Rider.
The rates shown in Schedule I are the one time single premium charged when the
option is exercised. The increased amount of reinsurance resulting from
exercising the rider will be treated as a new issue.
BMA REINSURANCE TREATY #: 199603 - 008 -
AMENDMENT III
SCHEDULE C
ADDITIONAL INFORMATION:
Universal Adult Term Rider will be reinsured using the same rates and allowances
as the base plan for the appropriate life reinsured.
Reinsurance premiums will be based on the current monthly Cost of Insurance
Rates marked Exhibit II for the amount at risk reinsured.
BMA REINSURANCE TREATY #: 199603 - 008 -
AMENDMENT III
EXHIBIT IIA
FLAT EXTRA PREMIUMS:
PERMANENT EXTRAS (for more than Five Years)
Reinsurance premium in the first year is zero. In renewal years, it is
80% of the flat extra premium charged the insured by the CEDING COMPANY,
multiplied by the initial amount ceded.
TEMPORARY FLAT EXTRA (for Five Years or Less)
Reinsurance premium is 80% of the flat extra premium charged the insured by
the CEDING COMPANY in first and renewal years, multiplied by the initial
amount ceded.
SUBSTANDARD PREMIUMS:
Substandard premiums are standard premiums increased 25% per Table.
SUBSTANDARD NONSMOKER PREMIUMS:
Substandard nonsmokers will be charged on the nonsmoker rate basis.
BMA REINSURANCE TREATY #: 199603 - 008 -
AMENDMENT III
EXHIBIT III
PLANS: Universal Adult Term
Universal Life
VUL
POLICY PREFERRED PLUS NON-TOBACCO TOBACCO
YEAR ALLOWANCES ALLOWANCES ALLOWANCES
------ -------------- ----------- ----------
1 100% 100% 100%
2+ 39% 33% 32%
ADDENDUM
to Amendment III of the
Facultative Umbrella Agreement
dated March 14, 1996
between
FARM BUREAU LIFE INSURANCE COMPANY
W. Des Moines, Iowa
(hereinafter called the CEDING COMPANY)
and
BUSINESS MEN'S ASSURANCE COMPANY OF AMERICA
Kansas City, Missouri
(hereinafter called the BMA)
Purpose: To change the rates and allowances and increase the rate capacity
for the 1999 Universal Life and Variable Universal Life plans.
1. The attached rates and allowances shall apply to new issues of
Universal Life and Variable Universal Life.
2. The CEDING COMPANY may reinsure amounts up to $10,000,000 under
the rates marked Exhibit II and allowances marked Exhibit III.
3. The CEDING COMPANY shall provide the current net amount at
risk. When submitting variable business, the CEDING COMPANY
will also provide the ultimate net amount at risk.
4. THE EFFECTIVE DATE shall be July 1, 1999.
Except as herein amended, the provisions of the said Reinsurance Agreement shall
remain unchanged.
IN WITNESS WHEREOF, this addendum is hereby executed in duplicate between the
parties concerned, and is duly signed by both parties respective officers as
follows:
CEDING COMPANY
XxXxx X. Xxxxxxxxx
/s/ XxXxx X. Xxxxxxxxx Vice President Life Operations
---------------------- ------------------------------------
signature title
XXXX XXXXXXXXX
/s/ Xxxx Xxxxxxxxx OPERATIONS VICE PRESIDENT
-------------------- ---------------------------------
signature title
Dec. 14, 1999
-------------
date
BMA
/s/ Xxxxxxx X. Xxxxxxxxx Senior Vice President/Reinsurance
------------------------ ---------------------------------
signature title
Vice President Reinsurance Actuary
------------------------ ----------------------------------
signature title
12-20-1999
----------
date
BMA REINSURANCE TREATY #: 199603 - 008 - 1
AMENDMENT III
EXHIBIT III
PLANS: Universal Adult Term
Universal Life
VUL
PREFERRED PREFERRED
POLICY NON-TOBACCO NON-TOBACCO TOBACCO TOBACCO
YEAR ALLOWANCES ALLOWANCES ALLOWANCES ALLOWANCES
------ ----------- ----------- ---------- ----------
1 100% 100% 100% 100%
2+ 42% 33% 32% 21%
ADDENDUM
to the
Facultative Reinsurance Agreement
dated March 14,1996
between
FARM BUREAU LIFE INSURANCE COMPANY
West Des Moines, Iowa
(hereinafter called the CEDING COMPANY)
and
BUSINESS MEN'S ASSURANCE COMPANY OF AMERICA
Kansas City, Missouri
(hereinafter called the BMA)
Purpose: To change the rates and allowances and add the super preferred class.
1. The attached rates and allowances shall replace the original
rates and allowances.
2. The new rates and allowances may be used for cases up to
$10,000,000.
3. THE EFFECTIVE DATE shall be May 1,2002.
Except as herein amended, the provisions of the said Reinsurance Agreement shall
remain unchanged.
IN WITNESS WHEREOF, this addendum is hereby executed in duplicate between the
parties concerned, and is duly signed by both parties respective officers as
follows:
BMA FARM BUREAU LIFE INSURANCE COMPANY
/s/ XxXxx Xxxxxxxxx
-------------------------- ----------------------------------------
signature signature
XxXxx Xxxxxxxxx
SVP Exec. V.P. & General Manager
-------------------------- -----------------------------------------
title title
/s/ Xxxx Xxxxxxxxx
-------------------------- ----------------------------------------
signature signature
Xxxx Xxxxxxxxx
V.P. - [ILLEGIBLE] Vice President - Life Administration
-------------------------- ----------------------------------------
title title
May 6, 2002 May 1, 2002
-------------------------- ----------------------------------------
date date
BMA REINSURANCE
EXHIBIT III
COINSURANCE ALLOWANCES
FARM BUREAU LIFE INS CO - IA Treaty #: 199603-008-02
UNIVERSAL ADULT TERM
SUPER
PREFERRED PREFERRED STANDARD PREFERRED STANDARD
NON-TOBACCO NON-TOBACCO NON-TOBACCO TOBACCO TOBACCO
POLICY YEAR ALLOWANCES ALLOWANCES ALLOWANCES ALLOWANCES ALLOWANCES
----------- ----------- ----------- ----------- ---------- ----------
1 100% 100% 100% 100% 100%
2+ 44% 45% 35% 35% 27%
UNIVERSAL LIFE
SUPER
PREFERRED PREFERRED STANDARD PREFERRED STANDARD
NON-TOBACCO NON-TOBACCO NON-TOBACCO TOBACCO TOBACCO
POLICY YEAR ALLOWANCES ALLOWANCES ALLOWANCES ALLOWANCES ALLOWANCES
----------- ----------- ----------- ----------- ---------- ----------
1 100% 100% 100% 100% 100%
2+ 44% 45% 35% 35% 27%
VUL
SUPER
PREFERRED PREFERRED STANDARD PREFERRED STANDARD
NON-TOBACCO NON-TOBACCO NON-TOBACCO TOBACCO TOBACCO
POLICY YEAR ALLOWANCES ALLOWANCES ALLOWANCES ALLOWANCES ALLOWANCES
----------- ----------- ----------- ----------- ---------- ----------
1 100% 100% 100% 100% 100%
2+ 44% 45% 35% 35% 27%
1
ADDENDUM
to Amendment III
of the Facultative Umbrella Agreement
dated March 14,1996
between
FARM BUREAU LIFE INSURANCE COMPANY
West Des Moines, Iowa
(hereinafter called the CEDING COMPANY)
and
BUSINESS MEN'S ASSURANCE COMPANY OF AMERICA
Kansas City, Missouri
(hereinafter called the BMA)
Purpose: To include the new UL/VUL.
1. The attached rates and allowances will apply to the new Farm
Bureau Life UL and VUL.
2. The rates and allowances may be used for policies up to
$10,000,000.
3. When submitting variable business, the CEDING COMPANY will
provide the ultimate net amount at risk.
4. THE EFFECTIVE DATE shall be September 1, 2002.
Except as herein amended, the provisions of the said Reinsurance Agreement shall
remain unchanged.
IN WITNESS WHEREOF, this addendum is hereby executed in duplicate between the
parties concerned, and is duly signed by both parties respective officers as
follows:
BMA FARM BUREAU LIFE INSURANCE COMPANY
/s/ XxXxx Xxxxxxxxx
-------------------------- ----------------------------------------
signature signature
XxXxx Xxxxxxxxx
SVP Exec. V.P. & General Manager
-------------------------- -----------------------------------------
title title
/s/ Xxxx Xxxxxxxxx
-------------------------- ----------------------------------------
signature signature
Xxxx Xxxxxxxxx
V.P. - Rinsur. Act. Vice President - Life Administration
-------------------------- ----------------------------------------
title title
November 18, 2002 Nov. 11, 2002
-------------------------- ----------------------------------------
date date
BMA REINSURANCE
EXHIBIT III
COINSURANCE ALLOWANCES
FARM BUREAU LIFE INS CO - IA Treaty #: 199603-008-03
UL/VUL INCLUDING U-TERM RIDER
SUPER
PREFERRED PREFERRED STANDARD PREFERRED STANDARD
NON-TOBACCO NON-TOBACCO NON-TOBACCO TOBACCO TOBACCO
POLICY YEAR ALLOWANCES ALLOWANCES ALLOWANCES ALLOWANCES ALLOWANCES
----------- ----------- ----------- ----------- ---------- ----------
1 100% 100% 100% 100% 100%
2+ 44% 45% 35% 35% 27%
BMA REINSURANCE
EXHIBIT III
OTHER ALLOWANCES
FARM BUREAU LIFE INS CO - IA Treaty #: 199603-008-03
WAIVER OF COST OF INSURANCE
1st Year 100%
Renewal 10%
TEMP FLAT EXTRA
All Years 20%
PERM FLAT EXTRA
1st Year 100%
Renewal 20%
