Exhibit (g)(7)
ADDENDUM No. 1 to the Reinsurance Agreement referred to as No.BA052-86 made
between IDS LIFE INSURANCE COMPANY OF NEW YORK (hereinafter referred to as "the
Company") and [name of reinsurance company] (hereinafter referred to as "the
Reinsurer").
It is hereby declared and agreed that effective August 31, 1987 the above
agreement shall be amended to add the Variable Universal Life Plan (VUL) and
Other Insured Rider. Exhibit A-I (effective October 1, 1985) shall be cancelled
and replaced by the attached Exhibit A-I (revised August 31, 1987).
The Variable Universal Life Plan and Other Insured Rider shall be reinsured
under the terms and rates set out in the attached Exhibit C-I (effective August
31, 1987).
All other terms and conditions remain unaltered.
Made in duplicate and executed by both parties.
Signed for and on behalf of IDS LIFE INSURANCE COMPANY OF NEW YORK
/s/ Xxxxxx X. Xxxxxxx
Albany, this day of , 19
and for and on behalf of [name of reinsurance company]
[signature]
Toronto, this day of , 19
EXHIBIT A-I
(Revised August 31, 1987)
BUSINESS COVERED
Effective Date:
October 1, 1985. The commencement dates for specific business are shown below.
Business Covered:
The policies, riders and supplementary benefits on the plans shown below with
policy issue dates falling in the period that begins with the Commencement Date
and ends with the Termination Date are covered subject to any limitations shown
below or elsewhere in this Agreement.
Limitations:
1. All policies on lives with surnames commencing with the letters H to P
inclusive are eligible for automatic and facultative coverage. (Policies
on other lives may be offered on a facultative basis only. )
Plans, Riders and Benefits:
Commencement Termination
Policies. Form No. Limitations Date Date
--------- -------- ----------- ------------ ------------
Universal (UL50) Lives II to P October 1, 1985
Life 50 as in 1. above
Universal (UL100) As above As above
Life 100
Variable Universal As above August 31, 1987
Life (VUL)
Riders
Other Insured Rider As above August 31, 1987
Supplementary Benefits
Waiver of Premium As above As above
EXHIBIT C-I
(Effective August 31, 1987)
VARIABLE UNIVERSAL LIFE (VUL)
INSTRUCTIONS FOR, ADMINISTRATION
1. BASIS OF REINSURANCE: The Company shall pay to the Reinsurer a premium
based on the Company's current Monthly Cost of Insurance rates but not
including any policy fee payable on the original policy.
The premium rates set out in Exhibit C-I shall be payable monthly in
advance, whatever the mode of payment of the premiums under the original
insurance, and the Company shall continue to pay the appropriate premium
to the Reinsurer as long as the cession is in force.
On all cessions the due proportion of any extra premiums payable on
account of additional mortality risk, whether for medical impairments,
occupation, climate or other reason, shall be payable to the Reinsurer.
For Waiver of Premium and Payor Death and Disability benefits, premiums
shall be calculated on the amount reinsured it the same annual rate as is
applicable to the original policy.
All business will be reinsured on a Smoker/Non-smoker basis, and the
Company will indicate to the Reinsurer any policy that is issued on a
Non-smoker basis. If there is no such indication, the policy will be
processed on a Smoker basis.
2. COMMISSIONS: The Reinsurer shall pay to the Company commissions on the
premiums payable hereunder at the rates set out below:
Non-Smoker Smoker
---------- ------
First Year [percentage] [percentage]
Years 2 through 10 [percentage] [percentage]
Thereafter [percentage] [percentage]
Commissions for the Other Insured Rider will be the same as for the basic
coverage.
The above rates of commission shall apply to reinsurances of up to [dollar
amount] and reinsurances over this amount shall be subject to individual
consideration.
EXHIBIT C-I
(Effective August 31, 1987)
Page 2
3. ALLOWANCES:
(a) On Flat Extra Premiums
When a flat extra premium is payable for [number]years or less, an
allowance of [percentage] of the gross extra charged by the Company
will be made each year. When a flat extra premium is payable for
more than [number] years, an allowance of [percentage] of the gross
flat extra charged by the Company will be made in the first year and
an allowance of [percentage] in each year thereafter.
(b) On Multiple Extra Premiums
The same rates of commissions as those payable on the basic policy.
(c) Other Benefits and Ratings
For Waiver of Premium, Payor Death and Disability, Occupational,
Aviation and Residence Premiums an allowance of [percentage] of the
gross premium charged by the Company in the first year will be paid
and an allowance of [percentage] in each year thereafter.
4. UNIVERSAL LIFE EXCHANGE PROGRAM
Exchanges from Universal Life to Variable Universal Life, will be
reinsured using point in scale Variable Universal Life cost of insurance
rates and allowances.
EXHIBIT C-I
(Effective August 31, 1987)
Page 3
Monthly Annual
Current Current Current Current Current Current Current Current
M MS M S FE NS FE S M MS M S FE NS FE S
VOL COI VOL COI VOL COI VOL COI VOL COI VOL COI VOL COI VOL COI
age rates rates rates rates age rates rates rates rates
0
1
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46
EXHIBIT C-I
(Effective August 31@ 1987)
Page 4
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EXHIBIT C-I
(Effective August 31, 1987)
Page 5
Monthly Annual
quar- quar- quar- quar- quar- quar- quar- quar-
M MS M S FE MS FE S M MS M S FE MS FE S
VUL COI VUL COI VUL COI VUL COI VUL COI VUL COI VUL COI VUL COI
age rates rates rates rates rates rates rates rates
0
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EXHIBIT C-1
(Effective August 31, 1987)
Page 6
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EXHIBIT C-I
(Effective August 31, 1987)
Page 7
OVER OF MONTHLY DEDUCTION MINIMUM PREMIUMS ANNUAL COST OF INSURANCE RATES FOR WMD
ISSUE MALE FEMALE ATTAINED MALE FEMALE
AGE MS S MS S AGE MS S MS S
5
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EXHIBIT C-I
(Effective August 31, 1987)
Page 8
VUL PREMIUM BASE FDE SURRENDER CHARGE SURRENDER CHARGE CAP FOR VUL
age M MS M MS FE MS FE S age M MS M S FE MS FE S
0
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EXHIBIT C-I
(Effective August 31, 1987)
Page 9
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EXHIBIT C-I
(Effective August 31, 1987)
Page 10
Annual
MINIMUM PREMIUMS FOR VUL'S DEATH BENEFIT GUAR
(does not include policy fee or load)
AGE M MS M S FE MS FE S
0
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[logo]
September 1, 1987 MAILING ADDRESS
[address, city and state of reinsurance company]
Xx. Xxxxxx X. Xxxxxxx
Vice President, Underwriting
IDS Life Insurance Company
IDS Tower
Xxxxxxxxxxx, XX 00000
XXX
Dear Xx. Xxxxxxx
Please find enclosed our Addendum No.1 to Agreement BA052-86 to add the Variable
Universal Life (VUL) plan and the Other Insured Rider.
If you find the Addendum satisfactory, please sign both copies and return one
for our records.
If you have any questions concerning this, please feel free to contact Xxxx Xxxx
or myself.
Yours sincerely
[ILLEGIBLE]
[name]
[title]
JM/jm
Enclosure