Exhibit 7.3
VARIABLE ANNUITY REINSURANCE AGREEMENT
Effective Date of August 1, 1997
Between
THE LIFE INSURANCE COMPANY OF VIRGINIA
(Richmond, Virginia)
and
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
(Hartford, Connecticut)
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The Life Insurance Company of Virginia [LOGO]
Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance
Commonwealth VA Plus Treaty Effective 8/1/97
Treaty No. 103072
Connecticut General Life Insurance Company
VARIABLE ANNUITY REINSURANCE AGREEMENT
between
THE LIFE INSURANCE COMPANY OF VIRGINIA
(Richmond, Virginia)
and
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
(Hartford, Connecticut)
INDEX
ARTICLE PAGE
------- ----
Access to Records XII 6
Amounts at Risk II 1
Arbitration XVII 8
Automatic Excess Reinsurance III 2
Claims VII 4
Currency XIV 7
DAC Tax Regulation Election XVIII 9
Delays, Errors, or Omissions XIII 7
Effective Date; Term and Termination XIX 10
Extra Contractual Obligations IX 5
Hold Harmless XV 7
Insolvency XVI 8
Liability of Connecticut General IV 2
Litigation X 6
Notices XX 12
Offset XI 6
Parties to the Agreement I 1
Premium Accounting VI 3
Reinsurance Premiums V 2
Reserves VIII 5
SCHEDULES
A Maximum Limits of Reinsurance in Connecticut General
B Policy Forms and Funds Subject to this Reinsurance Agreement
C Limits and Rules of Life Of Virginia
D Reinsurance Premium Rates and Calculation Criteria
E Monthly Reporting Format
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The Life Insurance Company of Virginia [LOGO]
Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance
Commonwealth VA Plus Treaty Effective 8/1/97
Treaty No. 103072
Connecticut General Life Insurance Company
VARIABLE ANNUITY REINSURANCE AGREEMENT
(hereinafter called Agreement)
between
THE LIFE INSURANCE COMPANY OF VIRGINIA
(hereinafter called Life of Virginia)
and
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
(hereinafter called Connecticut General or CIGNA Reinsurance)
It is agreed by the two companies as follows:
ARTICLE I - PARTIES TO THE AGREEMENT
This Agreement shall be binding upon and shall inure solely to the benefit of
Life of Virginia and Connecticut General. This Agreement shall not and is not
intended to create any right or interest in any third party and shall not and is
not intended to create any legal relationship between either party and any third
party, including, without limitation, annuitants, insureds, certificate holders,
employees, dependents, beneficiaries, policy owners, applicants or assignees
under any policy or contract issued by Life of Virginia.
ARTICLE II - AMOUNTS AT RISK
A. This Agreement provides permanent coverage for fifty (50) percent of all
new issues of Life of Virginia's Commonwealth VA Plus product on forms and
funds as identified in Schedule B written by Life of Virginia from the
effective date of this Agreement through July 31, 2000, unless terminated
pursuant to article XIX. The reinsurance death benefit payable by
Connecticut General upon the death of the Annuitant is the excess of the
guaranteed minimum death benefit over the contract value as defined in the
variable annuity contracts and funds listed in Schedule B. At issue, the
guaranteed minimum death benefit is equal to the initial contract value.
Refer to Schedule A for a detailed description of the guaranteed minimum
death benefit.
B. The contract value represents the Annuitant's invested assets in the funds
in Schedule B as it appears in the records of Life of Virginia before
application of any surrender charges, on any given date.
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The Life Insurance Company of Virginia [LOGO]
Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance
Commonwealth VA Plus Treaty Effective 8/1/97
Treaty No. 103072
Connecticut General Life Insurance Company
-1-
ARTICLE III - AUTOMATIC EXCESS REINSURANCE
A. On and after the Effective Date of this Agreement, subject to the limit of
Connecticut General's liability set forth in Schedule A and all other
terms, conditions and limitations set forth in this Agreement and the
Schedules attached to and made a part hereof, Life of Virginia shall cede
and Connecticut General shall accept fifty (50) percent of Life of
Virginia's guaranteed death benefit liability under the Variable Annuity
Contracts, as described in Article II A.
B. This Agreement covers only fifty (50) percent of Life of Virginia's
liability for claims paid under Variable Annuity Contracts written on forms
and investment in funds which were reviewed by Connecticut General prior to
their issuance. Forms, as supplemented by additional materials, and funds
available as of the date of this Agreement are listed on Schedule B. If
Life of Virginia intends to cede to Connecticut General liability with
respect to a new form or fund, or a revised version of an approved form or
fund, it must provide to Connecticut General written notice of such
intention together with a copy of the proposed form, fund or revision, and
a revised Schedule B.
C. Life of Virginia shall provide written notice to Connecticut General of any
changes in its published limits and rules identified on Schedule C, and
Connecticut General shall have no liability pursuant to revised limits and
rules unless and until Connecticut General provides written notice to Life
of Virginia that such revised limits and rules are acceptable.
ARTICLE IV - LIABILITY OF CONNECTICUT GENERAL
Connecticut General's liability for reinsurance under this Agreement shall
follow that of Life of Virginia in every case, and be subject in all respects to
the general stipulations, terms, clauses, conditions, waivers and modifications
of the Variable Annuity Contracts.
In no event shall Connecticut General have any reinsurance liability unless the
Variable Annuity Contract issued by Life of Virginia is in force and the
underwriting and issuance of coverage by Life of Virginia constitutes the doing
of business in a state of the United States of America in which Life of Virginia
was properly licensed and authorized to do business at the time the contract was
issued.
ARTICLE V - REINSURANCE PREMIUMS
Premiums for reinsurance subject to the terms and conditions of this Agreement
shall be paid on a monthly basis. Such premiums shall be determined by the
application of the basis points (bps) set forth in Schedule D to the amount of
reinsurance coverage provided for each annuity insured by Life of Virginia as
calculated based on the criteria defined in Schedule D.
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The Life Insurance Company of Virginia [LOGO]
Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance
Commonwealth VA Plus Treaty Effective 8/1/97
Treaty No. 103072
Connecticut General Life Insurance Company
-2-
ARTICLE VI - PREMIUM ACCOUNTING
A. Reinsurance premiums shall be paid on a monthly basis. On or before the Due
Date (as defined in Paragraph B), Life of Virginia shall forward to
Connecticut General its statement of account as set forth in Schedule E
together with its remittance for the net amount due as shown therein as
well as any premium adjustments from the prior month. If the statement
shows a balance due Life of Virginia, Reinsurer shall remit that amount to
Life of Virginia on or before the Remittance Date (the date occurring
thirty days after the Due Date). All outstanding balances due and unpaid
beyond the Remittance Date shall be subject to an annual interest charge on
the unpaid balance from the Due Date as specified in this Article to the
date of payment.
B. For the purposes of this Agreement the Due Date for Reinsurer's receipt of
the statement of account and premium due is the twentieth (20th) day
following the close of any reporting period. The payment of reinsurance
premiums in accordance with the provisions herein shall be a condition
precedent to the liability of Reinsurer for reinsurance covered by this
Agreement. In the event that reinsurance premiums are not received by
Reinsurer as of the Due Date following the close of the reporting period in
which they fall due, Reinsurer will notify Life of Virginia that such
premiums are due and unpaid, and Life of Virginia will remit the premium on
or before the Remittance Date. In the event that the premiums are not paid
by the Remittance Date, Reinsurer shall have the right to give Life of
Virginia notice of termination of such reinsurance immediately.
C. Whether or not Reinsurer exercises its right to terminate the reinsurance
as specified in the preceding paragraph, all such outstanding premiums
shall be subject to an annual interest charge on the unpaid balance from
the Due Date to the date of payment. Such interest charge shall be at the
three (3) month LIBOR Rate (as published in the Wall Street Journal), plus
.01, determined on the first business day following the end of the 60 day
notice period. The settlement is considered overdue at the end of the 60
day notice period and interest shall commence from the overdue date.
D. If reinsurance is terminated as provided in paragraph B, and if all
reinsurance premiums in default and any additional charge due in accordance
with paragraph B, including such premiums and charges which may become in
default are not paid by the Remittance Date, Reinsurer shall thereupon be
relieved automatically of future liability under all reinsurance for which
premiums and other charges remain unpaid. New and existing Reinsurance for
which premiums subsequently fall due will terminate automatically if
reinsurance premiums are not paid when due as provided in paragraph B of
this Article. The reinsurance so terminated may be reinstated at any time
within sixty days of the date of termination upon payment of all
reinsurance premiums and other charges in arrears; but in the event of such
reinstatement, Reinsurer shall have no liability in connection with any
claims incurred between the date of termination and the date of
reinstatement of the reinsurance.
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The Life Insurance Company of Virginia [LOGO]
Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance
Commonwealth VA Plus Treaty Effective 8/1/97
Treaty No. 103072
Connecticut General Life Insurance Company
-3-
E. Not withstanding termination of reinsurance as provided herein, Life of
Virginia shall continue to be liable to Reinsurer for all unpaid
reinsurance premiums earned by Reinsurer under this Agreement. Such
premiums are subject to an annual interest charge as specified in paragraph
C above.
ARTICLE VII - CLAIMS
Life of Virginia is solely responsible for payment of its claims under the
Policies and underlying variable annuity contracts identified on Schedule B.
Life of Virginia shall provide written notice to Connecticut General of any
Claim which may impact the reinsurance coverage under this Agreement, including
but not limited to Life of Virginia's intent to contest or deny a claim, within
thirty (30) calendar days of receipt of notification of Claim. Life of Virginia
shall also provide prompt notice to Connecticut General of all subsequent
significant developments relating to such Claim. Inadvertent oversight or
omission in the provision of such notice shall not relieve Connecticut General
of liability provided Life of Virginia informs Connecticut General of such
oversight or omission promptly upon its discovery.
Life of Virginia shall provide Connecticut General with proof of claim, proof of
claim payment and any other claim documentation requested by Connecticut General
in accordance with Schedule E. Payment of reinsurance shall be made by
Connecticut General in one sum regardless of the method of payment by Life of
Virginia and within thirty (30) calendar days following receipt of required
claim documentation.
Life of Virginia shall notify Connecticut General of its intention to contest or
deny a claim which may involve the reinsurance coverage under this Agreement
before any notice of contest or denial is provided to the claimant. Connecticut
General shall then have thirty (30) calendar days within which to advise Life of
Virginia whether it agrees that the claim should be contested or denied. If
Connecticut General does not agree that the claim should be contested or denied,
then it shall pay to Life of Virginia the full amount of the reinsurance on the
risk reinsured, as set forth in this Agreement, and Connecticut General shall
have no further obligation in respect to such claim. If Connecticut General
agrees that the claim should be contested or denied, then Connecticut General
shall pay its share of the following in accordance with its share of liability
as set forth in this Agreement:
. Expenses incurred by Life of Virginia in investigating, contesting
litigating or otherwise resisting the Claim, excluding salaries and
expenses of employees, officers and agents of Life of Virginia and
ordinary expenses of Life of Virginia, and costs of third party
administrators acting on behalf of Life of Virginia; and
. Interest which is paid by Life of Virginia in respect of the Claim.
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The Life Insurance Company of Virginia [LOGO]
Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance
Commonwealth VA Plus Treaty Effective 8/1/97
Treaty No. 103072
Connecticut General Life Insurance Company
-4-
If the denial of a Claim results in an award verdict or judgment against Life of
Virginia, where Connecticut General has agreed with the claim denial and Life of
Virginia intends to appeal the verdict or judgment, written notice of the
intention to appeal shall be provided to Connecticut General. Connecticut
General shall be entitled at that time to pay its share of the judgment,
together with any expenses and interest as set forth above, and to have no
further obligation in connection with such Claim. If Connecticut General does
not pay its share of the judgment and any expenses and interest due at that
time, Connecticut General shall pay its share of the expenses associated with
the appeal of the judgment or verdict, together with its share of any additional
interest charges that may accrue during the appeal.
ARTICLE VIII - RESERVES
The reserve held by Connecticut General for reinsurance of the variable annuity
death benefit will be determined in accordance with the NAIC Actuarial Guideline
XXXIV, but in no event less than the recognized statutory required reserve. If
at any time, the statutory requirements as mandated by Connecticut Insurance
Department include a one-third drop, Connecticut General will hold these
reserves in exchange for an extra charge as defined in Schedule D.
ARTICLE IX - EXTRA CONTRACTUAL OBLIGATIONS
A. In no event shall Connecticut General be liable for extra contractual
damages (whether they constitute Compensatory damages, Statutory penalties,
Exemplary or Punitive damages) which are awarded against Life of Virginia
as a result of an act, omission or course of conduct by Life of Virginia
in connection with policies subject to this Agreement, unless Connecticut
General shall have received notice in writing of and concurred with the
actions taken or not taken by Life of Virginia which led to its liability,
in which case Connecticut General shall pay its share of such liability.
For this purpose, Connecticut General's share shall be proportionate with
its risk under the business reinsured hereunder.
B. The following definitions shall apply:
(1) Punitive damages and Exemplary damages are those damages awarded as a
penalty, the amount of which is not governed nor fixed by statute.
(2) Statutory penalties are those amounts which are awarded as a penalty
but fixed in amount by statute.
(3) Compensatory damages are those amounts awarded to compensate for the
actual damages sustained and are not awarded as a penalty nor fixed in
amount by statute.
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The Life Insurance Company of Virginia [LOGO]
Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance
Commonwealth VA Plus Treaty Effective 8/1/97
Treaty No. 103072
Connecticut General Life Insurance Company
-5-
ARTICLE X - LITIGATION
In the event of any action brought against Life of Virginia under any Underlying
Annuity Contract that is subject to the terms and conditions of this Agreement,
Life of Virginia shall provide a copy of such action and written notice of such
action within ten (10) business days to Connecticut General. If Connecticut
General is a party to action brought against Life of Virginia, Life of Virginia
shall seek agreement by Connecticut General on the selection and appointment of
local counsel to represent Life of Virginia in such action.
ARTICLE XI - OFFSET
Either party shall have, and may exercise at any time and from time to time, the
right to offset any balance or amounts whether on account of premiums or on
account of losses or otherwise, due from one party to the other under the terms
of this Agreement. However, in the event of insolvency of Life of Virginia
subject to the provisions of Article XVI, offset shall only be allowed in
accordance with the statutes and/or regulations of the state having jurisdiction
over the insolvency.
ARTICLE XII - ACCESS TO RECORDS
Connecticut General, or its duly authorized representative, shall have access at
any reasonable time during regular business hours, to all records of Life of
Virginia, including the right to photocopy and retain copies of such documents,
which pertain in any way to this reinsurance. The right of access shall survive
the termination of this Agreement.
Life of Virginia and Connecticut General may come into the possession or
knowledge of Confidential Information of the other in fulfilling obligations
under this Agreement. Each party agrees to hold such confidential information in
the strictest confidence and to take all reasonable steps to ensure that such
Confidential Information is not disclosed in any form by any means by each of
them or by any of its employees to third parties of any kind, other than
attorneys, accountants, other consultants or retrocessionaires having an
interest in such information, except by advance written authorization by an
officer of the authorizing party; provided, however, that either party will be
deemed to have satisfied its obligations as to the Confidential Information by
protecting its confidentiality in the same manner that such party protects its
own proprietary or confidential information of like kind which shall be at least
a reasonable manner. "Confidential information" means any information which (1)
is not generally available to or known by the public, or (2) has not been
lawfully obtained or developed by either party independently and not in
violation of this Agreement or from any source other than the other party,
provided that such source is not bound by a duty of confidentiality to such
other party, and which consists of:
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The Life Insurance Company of Virginia [LOGO]
Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance
Commonwealth VA Plus Treaty Effective 8/1/97
Treaty No. 103072
Connecticut General Life Insurance Company
-6-
A. Information or knowledge about each party's products, processes, services,
finances, customers, research, computer programs, marketing and business
plans, claims management practices; and
B. Any medical or other personal, individually identifiable information about
people or business entities with whom the parties do business, including
customers, prospective customers, vendors, suppliers, individuals covered
by insurance plan, and each party's producers and employees.
ARTICLE XIII - DELAYS, ERRORS OR OMISSIONS
No accidental delay, errors or omissions on the part of Life of Virginia shall
relieve Connecticut General of liability provided immediate notice of such
delay, errors or omissions is provided to Connecticut General and are rectified
as soon as possible after discovery. However, Connecticut General shall not be
liable with respect to any reinsurance which may have been inadvertently
included in the premium computation but which ought not to have been included by
reason of the terms and conditions of this Agreement. It is expressly understood
and agreed that if failure to comply with any terms of this Agreement is shown
to be unintentional or the result of misunderstanding or oversight on the part
of either party, both parties shall be restored to the position they would have
occupied had no such error or oversight occurred, subject always to the
correction of the error or oversight.
ARTICLE XIV - CURRENCY
All retentions and limits hereunder are expressed in United States dollars and
all premium and loss payments shall be made in United States currency. For the
purposes of this Agreement, amounts paid or received by Connecticut General in
any other currency shall be converted into United States dollars at the rates of
exchange on the date such transactions are entered on the books of Connecticut
General.
ARTICLE XV - HOLD HARMLESS
A. Connecticut General shall indemnify and hold Life of Virginia harmless from
any and all liability, loss, damage, fines, punitive damages, penalties and
costs, including expenses and attorney's fees, which results from any
negligence or willful misconduct of Connecticut General in fulfilling its
duties and obligations under this Agreement or which results from any
action which exceeds its authority under this Agreement.
B. Life of Virginia shall indemnify and hold Connecticut General harmless from
any and all liability, loss, damage, fines, punitive damages, penalties and
costs, including expenses and
--------------------------------------------------------------------------------
The Life Insurance Company of Virginia [LOGO]
Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance
Commonwealth VA Plus Treaty Effective 8/1/97
Treaty No. 103072
Connecticut General Life Insurance Company
-7-
attorney's fees, which results from any negligence or willful misconduct of
Life of Virginia in fulfilling its duties and obligations under this
Agreement or which results from any action which exceeds its authority
under this Agreement.
ARTICLE XVI - INSOLVENCY
In the event of insolvency of Life of Virginia, the reinsurance under this
Agreement shall be payable directly by Connecticut General to Life of Virginia
or to its liquidator, receiver, conservator or statutory successor on the basis
of Connecticut General's liability to Life of Virginia without diminution
because of the insolvency of Life of Virginia or because the liquidator,
receiver, conservator or statutory successor of Life of Virginia has failed to
pay all or a portion of any claim. It is agreed, however, that the liquidator,
receiver, conservator or statutory successor of Life of Virginia shall give
prompt written notice to Connecticut General of the pendency of a claim against
Life of Virginia within a reasonable time after such claim is filed in the
receivership, conservation, insolvency or liquidation proceeding and that during
the pendency of such claim, Connecticut General may investigate such claim and
interpose, at its own expense, in the proceeding where such claim is to be
adjudicated, any defense or defenses that it may deem available to Life of
Virginia or its liquidator, receiver, conservator or statutory successor. The
expense thus incurred by Connecticut General shall be chargeable, subject to the
approval of the Court, against Life of Virginia as part of the expense of
conservation or liquidation to the extent of a pro-rata share of the benefit
which may accrue to Life of Virginia solely as a result of the defense
undertaken by Connecticut General.
Where two or more reinsurers are involved in the same claim and a majority in
interest elect to interpose defense to such claim, the expense shall be
apportioned in accordance with the terms of this Agreement as though such
expense had been incurred by Life of Virginia.
ARTICLE XVII - ARBITRATION
A. As a condition precedent to any right of action hereunder, any dispute
between the parties with respect to the interpretation of this Agreement or
any right, obligation or liability of either party, whether such dispute
arises before or after termination of this Agreement, shall be submitted to
arbitration upon the written request of either party. Each party shall
select an arbitrator within thirty (30) days of the written request for
arbitration. If either party refuses or neglects to appoint an arbitrator
within thirty (30) days of the written request for arbitration, the other
party may appoint the second arbitrator. The two arbitrators shall select
an umpire within thirty (30) days of the appointment of the second
arbitrator. If the two arbitrators fail to agree on the selection of the
umpire within thirty (30) days of the appointment of the second arbitrator,
each arbitrator shall submit to the other a list of three umpire
candidates, each arbitrator shall select one name from the list submitted
by the other and the umpire shall be selected from the two names chosen by
a lot drawing procedure to be agreed upon by the arbitrators.
--------------------------------------------------------------------------------
The Life Insurance Company of Virginia [LOGO]
Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance
Commonwealth VA Plus Treaty Effective 8/1/97
Treaty No. 103072
Connecticut General Life Insurance Company
-8-
B. The arbitrators and the umpire all shall be active or retired, executive
officers of insurance or reinsurance companies and the umpire shall be
disinterested.
C. The arbitration panel shall interpret this Agreement as an honorable
engagement rather than merely as a legal obligation and shall make its
decision considering the custom and practice of the applicable insurance
and reinsurance business. The arbitration panel is released from judicial
formalities and shall not be bound by strict rules of procedure and
evidence.
D. The decision of the arbitration panel shall be final and binding on both
parties. The arbitration panel may, at its discretion, award costs and
expenses as it deems appropriate, including, but not limited to, attorneys'
fees, interest and punitive damages. Judgment may be entered upon the final
decision of the arbitration panel in any court of competent jurisdiction.
E. All meetings and hearings before the arbitration panel shall take place in
Hartford, Connecticut unless some other place is mutually agreed upon by
both parties or ordered by the panel.
F. In the absence of a decision to the contrary by the arbitration panel, each
party shall bear the expense of its own arbitrator and shall jointly and
equally bear with the other party the expense of the umpire and of the
arbitration.
ARTICLE XVIII - DAC TAX REGULATION ELECTION
Connecticut General and Life of Virginia hereby agree to make an election
pursuant to Internal Revenue Code Regulation Section 1.848-2(g)(8). This
election shall be effective for all taxable years for which the Reinsurance
Agreement remains in effect.
The terms used in this article are defined by reference to Regulation Section
1.848-2 promulgated on December 28, 1992.
Connecticut General and Life of Virginia agree that the entity with net positive
consideration for the reinsurance agreement for each taxable year will
capitalize specified policy acquisition expenses with respect to the reinsurance
agreement without regard to the general deductions limitation of Section
848(c)(1) of the Internal Revenue Code of 1986, as amended.
Connecticut General and Life of Virginia agree to exchange information
pertaining to the amount of net consideration under the reinsurance agreement
each year to ensure consistency. To achieve this, Life of Virginia shall provide
Connecticut General with a schedule of its calculation of the net consideration
for all reinsurance agreements in force between them for a taxable year by no
later than April 30 of the succeeding year. Connecticut General shall advise
Life of Virginia if it disagrees with the amounts provided by no later than May
31, otherwise the amounts will be
--------------------------------------------------------------------------------
The Life Insurance Company of Virginia [LOGO]
Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance
Commonwealth VA Plus Treaty Effective 8/1/97
Treaty No. 103072
Connecticut General Life Insurance Company
-9-
presumed correct and shall be reported by both parties in their respective tax
returns for such tax year. If Connecticut General contests Life of Virginia's
calculation of the net consideration, the Parties agree to act in good faith to
resolve any differences within thirty (30) days of the date Connecticut General
submits its alternative calculation and report the amounts agreed upon in their
respective tax returns for such tax year.
Connecticut General represents and warrants that it is subject to U.S. taxation
under either Subchapter L or Subpart F of Part III of Subchapter N of the
Internal Revenue Code of 1986, as amended.
ARTICLE XIX - EFFECTIVE DATE, TERM AND TERMINATION
A. The effective date of this Agreement is August 1, 1997. This Agreement
remains effective for all annuity contracts subject to this Agreement
written by Life of Virginia through July 31, 2000, unless terminated
pursuant to the paragraphs listed below.
B. Once each calendar year, Life of Virginia shall have the option to
recapture existing contracts beginning with the twentieth (20th)
anniversary of their reinsurance hereunder. Recapture must be made on an
issue year basis, and no contracts can be recaptured unless all contracts
with earlier issue years are recaptured.
C. Connecticut General shall have the option of terminating this Agreement for
new business upon delivery of thirty (30) calendar days written notice to
Life of Virginia, within thirty (30) days of the happening of any of the
following events:
(1) Life of Virginia's A. M. Best rating is reduced to a "C" or lower.
(2) Life of Virginia's domiciliary state's insurance regulators take any
regulatory action potentially adversely affecting its license to
conduct business, including without limitation placement on a "watch
list;"
(3) An order appointing a receiver, conservator or trustee for management
of Life of Virginia is entered or a proceeding is commenced for
rehabilitation, liquidation, supervision or conservation of Life of
Virginia;
(4) Life of Virginia withdraws from or substantially reduces the active
marketing of policy forms identified in Schedule B.
(5) The Securities and Exchange Commission takes any regulatory action
with respect to Life of Virginia that potentially adversely affects
its conduct of business.
D. Connecticut General shall have the option of terminating this Agreement for
new and existing business should Life of Virginia fail to pay premium in
accordance with Article V and VI. If,
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The Life Insurance Company of Virginia [LOGO]
Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance
Commonwealth VA Plus Treaty Effective 8/1/97
Treaty No. 103072
Connecticut General Life Insurance Company
-10-
during the thirty (30) days notice period, Connecticut General receives all
premiums in arrears and all premiums which may become due within the thirty
(30) days notice period, the notice of termination shall be deemed
withdrawn. In the event of termination under this paragraph, this Agreement
may be reinstated upon the written consent of Connecticut General if, at
any time within sixty (60) days of termination, Life of Virginia pays and
Connecticut General receives all premiums due and payable up to the date of
reinstatement.
E. Life of Virginia shall have the option of terminating this Agreement for
new business upon delivery of thirty (30) calendar days written notice to
Connecticut General, within thirty (30) days of the happening of any of the
following events:
(1) Connecticut General's A. M. Best rating is reduced to a "C" or lower;
(2) Connecticut General is placed upon a "watch list" by its domiciliary
state's insurance regulators;
(3) An order appointing a receiver, conservator or trustee for management
of Connecticut General is entered or a proceeding is commenced for
rehabilitation, liquidation, supervision or conservation of
Connecticut General;
F. If this Agreement is terminated for new and existing business, Connecticut
General shall be relieved of all liability to Life of Virginia for claims
incurred following the termination date of this Agreement under such
underlying annuity contracts issued by Life of Virginia; and,
G. If this Agreement is terminated for new business only, Connecticut General
will remain liable, after termination, in accordance with the terms and
conditions of this Agreement, with respect to all reinsurance effective
prior to termination of the Agreement for new business.
H. Both parties shall continue to be entitled to all offset credits provided
by Article XI up to the effective date of termination.
I. Life of Virginia shall not have the right to assign or transfer any portion
of the rights, duties and obligations of Life of Virginia under the terms
and conditions of this Agreement without the written approval of
Connecticut General, which shall not be unreasonably withheld.
--------------------------------------------------------------------------------
The Life Insurance Company of Virginia [LOGO]
Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance
Commonwealth VA Plus Treaty Effective 8/1/97
Treaty No. 103072
Connecticut General Life Insurance Company
-11-
ARTICLE XX - NOTICES
All notices required to be given hereunder shall be in writing and shall be
deemed delivered if personally delivered, sent via facsimile, or dispatched by
certified or registered mail, return receipt requested, postage prepaid,
addressed to the parties as follows:
Xxxx X. Xxxx Phone No. (000) 000-0000
Vice President Fax No. (000) 000-0000
The Life Insurance Company of Virginia
0000 Xxxx Xxxxx Xxxxxx, X.X. Xxx 00000
Xxxxxxxx, XX 00000
Xxxxx X. Xxxxxxxxxx, FSA Phone No. 000.000.0000
Assistant Vice President and Actuary Fax No. 000.000.0000
CIGNA Reinsurance
000 Xxxxxxx Xxxxx Xxxx
Xxxxxxxx, XX 00000-0000
Notice shall be deemed given on the date it is received in the mail or sent via
facsimile in accordance with the foregoing. Any party may change the address to
which to send notices by notifying the other party of such change of address in
writing in accordance with the foregoing.
--------------------------------------------------------------------------------
The Life Insurance Company of Virginia [LOGO]
Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance
Commonwealth VA Plus Treaty Effective 8/1/97
Treaty No. 103072
Connecticut General Life Insurance Company
-12-
The text of this Agreement and all Exhibits, Schedules and Amendments are
considered to be the entire contract between the parties. There are no other
understandings or agreements between the parties regarding the policies
reinsured other than as expressed in this Agreement. Either party may make
changes or additions to this Agreement, but they will not be considered to be in
effect unless they are made by means of a written amendment which has been
signed by both parties.
In witness whereof, the parties hereto have caused this Agreement to be signed
in duplicate on the dates indicated to be effective as of the date specified
above.
THE LIFE INSURANCE COMPANY OF VIRGINIA
By: /s/ Illegible
--------------------------------------
Date: April 21, 1998
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
By: /s/ Illegible
--------------------------------------
Date: April 15, 1998
--------------------------------------------------------------------------------
The Life Insurance Company of Virginia [LOGO]
Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance
Commonwealth VA Plus Treaty Effective 8/1/97
Treaty No. 103072
Connecticut General Life Insurance Company
-13-
SCHEDULE A
Maximum Limits of Reinsurance in Connecticut General
Connecticut General requires prior notification of any annuity purchase in
excess of $5,000,000.00 per annuitant/owner. Upon receipt of such notification,
Connecticut General then has the obligation to notify Life of Virginia within 15
days of its decision to accept or not accept the reinsurance risk for such an
annuity purchase. Should Connecticut General not respond within 15 days, it
shall be deemed that Connecticut General does not agree to accept such risk.
The purchase amount is the sum of all premium contributions less withdrawals in
the contract. For purchase amounts in excess of the maximum, Connecticut
General's death benefit liability will be reduced by the ratio of purchase
amounts in excess of the maximum to the total purchase amounts.
Guaranteed Minimum Death Benefit
The Guaranteed Minimum Death Benefit (GMDB) reinsured hereunder is as follows:
Standard Annuity GMDB, sometimes referred to as Six Year Ratchet, will be the
greater of (1) the minimum death benefit described below; or (2) the Account
Value on the date Life of Virginia received due proof of death of the Annuitant.
During the first six policy years, or if the Annuitant was age 81 or older on
the policy date, the minimum death benefit is the total of premiums paid, less
adjustments for any partial surrenders. During any subsequent six year period if
the Annuitant was age 80 or younger on the policy date, the minimum death
benefit on the last day of the previous six year period, plus any premiums paid
since that day, less adjustments for any partial surrenders since that day.
The following options will be available at issue if the Annuitant is age 75 or
younger and either Rider may be purchased with the Contract, but not both
Riders. A Rider may be cancelled at any time, effective at next policy
anniversary; however, if cancelled, the Rider may not be subsequently added. If
any of the following elective death benefit options are purchased, the GMDB may
include the following:
Elective GMDB Rider, sometimes referred to as Six Percent Roll-Up, will be the
greater of; (1) the Six Year Ratchet, and (2) the greater of (A) the GMDB, and
(B) the Account Value of the Policy on the date Life of Virginia receives proof
of the Annuitant's death, or, if later the date of the request. The GMDB is, on
the policy date, equal to the premium paid. At the end of each
--------------------------------------------------------------------------------
The Life Insurance Company of Virginia [LOGO]
Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance
Commonwealth VA Plus Treaty Effective 8/1/97
Treaty No. 103072
Connecticut General Life Insurance Company
SCHEDULE A
valuation period after such date, the GMDB is the lesser of: (1) the total of
all premiums received, multiplied by two, less the amount of any partial
surrenders made prior to or during that valuation period; or (2) the GMDB at the
end of the preceding valuation period, increased as specified below, plus any
additional premium payments during the current valuation period and less any
partial surrenders plus their applicable surrender charges during the current
valuation period. The amount of the increase for the valuation period will be
calculated by applying a factor to the GMDB at the end of the preceding
valuation period. Until the anniversary on which the Annuitant attains age 80,
the factor is determined for each valuation period at an effective annual rate
of six (6) percent.
Elective Optional Death Benefit Rider, sometimes referred to as the Annual
Step-Up benefit, is the greater of: (1) the Six Year Ratchet and (2) the minimum
death benefit, which, during the first policy year, the minimum death benefit is
the total of premiums paid, adjusted for any partial surrenders. After the first
policy year and until the policy anniversary immediately preceding the
Annuitant's 81st birthday, the minimum death benefit is the policy's greatest
death benefit on any previous p9olicy anniversary, plus the total premium
payments made since that date, less adjustments for any partial surrenders taken
since that date. Beginning on the policy anniversary immediately preceding the
Annuitant's 81st birthday, the minimum death benefit is the policy's minimum
death benefit on that date, plus the total premium payments made since that
date, less adjustments for any partial surrenders taken since that date.
Additional Enhancement Benefit, sometimes referred to as Enhanced Benefit, will
be the greatest of the Standard Annuity GMDB (the Six Year Ratchet) described
above, the Elective GMDB Rider (Six Year Ratchet and Six Percent Roll-Up)
described above, and the Elective Optional Death Benefit Rider (the Annual
Step-Up benefit) described above.
--------------------------------------------------------------------------------
The Life Insurance Company of Virginia [LOGO]
Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance
Commonwealth VA Plus Treaty Effective 8/1/97
Treaty No. 103072
Connecticut General Life Insurance Company
SCHEDULE A
SCHEDULE B
Contracts and Funds Subject to this Reinsurance Agreement
Form Number* Policy Description Date
----------- ------------------ ----
P1143 4/94 Separate Account 4 5/1/97
(F.13739) Flexible Premium Variable Deferred
Annuity Policy "Commonwealth VA Plus"
P1143 4/94 Supplement dated July 16, 1997 8/1/97
P5115 Supplement Dated July 25, 1997 8/1/97
* Includes all state variations
Fund Description
Variable Insurance Products Fund Janus Aspen Series
VIP Equity-Income Portfolio Growth Portfolio
VIP Overseas Portfolio Aggressive Growth Portfolio
Worldwide Growth Portfolio
Variable Insurance Products Fund II International Growth Portfolio
VIP Asset Manager Portfolio Balanced Portfolio
VIP Contrafund Portfolio Flexible Income Portfolio
Capital Appreciation Portfolio
GE Investments Funds, Inc.
Money Market Fund Federated Insurance Series
Government Securities Fund Federated Utility Fund II
S&P 500 Index Fund Federated High Income Bond Fund II
Total Return Fund Federated American Leaders Fund II
International Equity Fund
Real Estate Securities Fund The Xxxxx American Fund
Global Income Fund Xxxxx American Small Capitalization
Portfolio
Value Equity Fund Xxxxx American Growth Portfolio
Xxxxxxxxxxx Variable Account Funds PBHG Insurance Series Fund, Inc.
Xxxxxxxxxxx High Income Fund Growth II Portfolio
Xxxxxxxxxxx Bond Fund Large Cap Growth Portfolio
Xxxxxxxxxxx Capital Appreciation Fund
Xxxxxxxxxxx Growth Fund Variable Insurance Products Fund III
Xxxxxxxxxxx Multiple Strategies Fund VIP Growth & Income Portfolio
VIP Growth Opportunities Portfolio
--------------------------------------------------------------------------------
The Life Insurance Company of Virginia [LOGO]
Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance
Commonwealth VA Plus Treaty Effective 8/1/97
Treaty No. 103072
Connecticut General Life Insurance Company
SCHEDULE B
SCHEDULE C
Limits and Rules of Life of Virginia
1) Life of Virginia will determine the Guaranteed Minimum Death Benefit for
each deceased within seven (7) working days of receiving due proof of
death.
2) The minimum initial purchase payment is $5,000. Additional premium payments
of at least $500 for Non-Qualified Policies of $100 for Qualified Policies
or $50 for XXX Policies may be made any time before Income Payments begin.
--------------------------------------------------------------------------------
The Life Insurance Company of Virginia [LOGO]
Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance
Commonwealth VA Plus Treaty Effective 8/1/97
Treaty No. 103072
Connecticut General Life Insurance Company
SCHEDULE C
SCHEDULE D
Reinsurance Premiums
1. The reinsurance premiums shall be based on the Annuitant's age at the
end of each month. Life of Virginia shall determine the Annuitant's
age at the time it prepares the monthly exposure data submission for
the variable annuity guaranteed death benefit, as set forth in
Schedule E, attached hereto.
2. The Adjusted Aggregate Contract Value is the sum of the contract
values in all of Life of Virginia's variable annuities subject to this
Agreement, minus contract values attributable to amounts in excess of
the maximum purchase amounts listed in Schedule A.
3. The amount at risk each month will be calculated as the reinsurance
death benefit for each variable annuity contract covered under this
agreement. For determining the amount at risk, the guaranteed minimum
death benefit and the contract value are calculated as the average of
the values at the end of the current month and the end of the prior
month. The amount at risk cannot fall below zero
4. Subject to the funds set forth in Schedule B, the premium over each
calendar month will be equivalent to fifty (50) percent of the Age
Adjusted Aggregate Contract Values times:
A. Monthly, 0.467 basis points for the Standard Annuity GMDB (5.6
bps annually) for all attained ages for the Six Year Ratchet
product and 1.2 basis points (14.4 bps annually) for issues with
an attained age greater than 80 for the Six Year Ratchet benefit;
however,
1. Where the Elective GMDB Rider is selected, the premium over
each calendar month for all ages will be at least equivalent
to the Age Adjusted Aggregate Contract Values times 1.667
basis points (20.0 bps annually) for the greater of the Six
Year Ratchet and 6% Roll-Up benefit;
2. Where the Elective Optional Death Benefit Rider is selected,
the premium over each calendar month for all ages will be at
least equivalent to the Age Adjusted Aggregate Contract
Value times 1.083 basis points (13 bps annually) for the
Annual Step-Up benefit;
3. Where the Additional Enhancement Benefit is elected, the
premium over each calendar month for all ages will be at
least equivalent to the Age Adjusted Aggregate Contract
Values times 2.167 basis points (26.0 bps annually) for the
greatest of the Six Year Ratchet; Six Year Ratchet and 6%
Roll-Up Option; or the Six Year Ratchet with Annual Ratchet
Rider, sometimes referred to as the Enhanced Benefit.
5. All reinsurance premium rates, regardless of GMDB selection, assume a
dollar-for-dollar reduction in death benefits for partial withdrawals
from Account Value.
--------------------------------------------------------------------------------
The Life Insurance Company of Virginia [LOGO]
Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance
Commonwealth VA Plus Treaty Effective 8/1/97
Treaty No. 103072
Connecticut General Life Insurance Company
SCHEDULE D
SCHEDULE E
Monthly Reporting Format
1. Following the end of each calendar month, the Monthly Input Page,
Fund/Exposure-Based exhibit (Schedule E-1) and the Monthly Transaction
Summaries (Schedule E-2, E-3, E-4 and E-5) or an exhibit of similar form
must be prepared for each Qualified plan and Non-Qualified plan separately.
2. The tabulation should be on an Adjusted Basis, which requires omission of
excess contract values due to an issue amount in excess of $5 million.
3. The tabulation is on a seriatim basis, with each contract contributing
toward the totals for both exposure and aggregate contract value.
4. The tabulation is necessary to assess the correct amount at risk for
accurate calculation of reinsurance premium. Life of Virginia can choose to
report values a) as weighted averages during the month, or b) as of the end
of the month. This election must be denoted on the submission.
5. At year end reporting, a tabulation of exposures by age and sex based on a
percentage decrease in account value by fund type as specified by the NAIC
must be submitted for reserve purposes.
--------------------------------------------------------------------------------
The Life Insurance Company of Virginia [LOGO]
Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance
Commonwealth VA Plus Treaty Effective 8/1/97
Treaty No. 103072
Connecticut General Life Insurance Company
SCHEDULE E
VARIABLE ANNUITY DEATH BENEFIT
Monthly Input Page
-----------
Calendar Year
-----------
Reporting Month
-----------
Male Female Male Female Male Female Male Female
Age Band Exposure* Exposure* Annuity Value Annuity Value Claims Claims GMDB GMDB
---------- --------- --------- ------------- ------------- ------ ------ ---- ------
---------------------------------------------------------------------------------------
0 - 34
---------------------------------------------------------------------------------------
35 - 39
---------------------------------------------------------------------------------------
40 - 44
---------------------------------------------------------------------------------------
45 - 49
---------------------------------------------------------------------------------------
50 - 54
---------------------------------------------------------------------------------------
55 - 59
---------------------------------------------------------------------------------------
60 - 64
---------------------------------------------------------------------------------------
65 - 69
---------------------------------------------------------------------------------------
70 - 74
---------------------------------------------------------------------------------------
75 - 79
---------------------------------------------------------------------------------------
80 - 84
---------------------------------------------------------------------------------------
85 - 89
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
Total 0-79
---------------------------------------------------------------------------------------
80+
---------------------------------------------------------------------------------------
Total Male/Female
--------- ------------- ------ ------
Total 0-79
--------- ------------- ------ ------
Total 80+
--------- ------------- ------ ------
Grand Total
--------- ------------- ------ ------
Please use end of the period values.
* Exposure is defined as GMDB less Anuity Account Value, calculated on a
seriatum basis and aggregated.
--------------------------------------------------------------------------------
Life Insurance Company of Virginia [LOGO]
CVA Plus Variable Annuity CIGNA Reinsurance
Treaty No. 103072
Connecticut General Life Insurance Company
SCHEDULE E-1
VARIABLE ANNUITY DEATH BENEFIT
Monthly Transcation Summary
STANDARD DEATH BENEFIT GMDB
-----------
Calendar Year
-----------
Reporting Month
-----------
Monthly Reinsurance Premium Calculation
For All Attained Ages
-----------
1 Adjusted Aggregate Contract Value (BOM)
-----------
2 Adjusted Aggregate Contract Value (EOM)
-----------
3 Average Annuity Value
-----------
4 Monthly Fund Based Premium Rate 0.00004667
-----------
5 Monthly Earned Premium
-----------
6 Net Premium Due
-----------
For Attained Ages 80 and Above
-----------
7 Adjusted Aggregate Contract Value (BOM)
-----------
8 Adjusted Aggregate Contract Value (EOM)
-----------
9 Average Annuity Value
-----------
10 Monthly Fund Based Premium Rate 0.00012000
-----------
11 Monthly Earned Premium
-----------
12 Net Premium Due
-----------
13 Total Net Premium Due All Ages
Actual Claims
-----------
14 Monthly Reinsurance Amount*
-----------
Net Transaction
-----------
15 Premium Due Reinsurer
-----------
16 Monthly Reinsurance Claims
-----------
17 Prior Adjustment (attach explanation)
-----------
18 Amount Due to (from) Reinsurer
-----------
* Monthly Reinsurance Amount is defined as the aggregate sum of all
claims settled during a Month.
--------------------------------------------------------------------------------
Life Insurance Company of Virginia [LOGO]
CVA Plus Variable Annuity CIGNA Reinsurance
Treaty No. 103072
Connecticut General Life Insurance Company
SCHEDULE E-2
VARIABLE ANNUITY DEATH BENEFIT
Monthly Transcation Summary
ELECTIVE GMDB RIDER
-----------
Calendar Year
-----------
Reporting Month
-----------
Monthly Reinsurance Premium Calculation
-----------
1 Adjusted Aggregate Contract Value (BOQ)
-----------
2 Adjusted Aggregate Contract Value (EOQ)
-----------
3 Average Annuity Value [(1 +2)/2]
-----------
4 Monthly Fund Based Premium Rate 0.00016667
-----------
5 Monthly Earned Premium [3*4]
-----------
6 Advanced Premium Current Month [2*4]
-----------
7 Net Premium Due [5+6]
-----------
Actual Claims
-----------
8 Monthly Reinsurance Amount*
-----------
Net Transaction
-----------
9 Premium Due Reinsurer [Sum 7]
-----------
10 Monthly Reinsurance Claims [Sum 8]
-----------
11 Prior Adjustment (attach explanation)
-----------
12 Amount Due to (from) Reinsurer [9-10+11]
-----------
* Monthly Reinsurance Amount is defined as the aggregate sum of all
claims settled during a Month.
--------------------------------------------------------------------------------
Life Insurance Company of Virginia [LOGO]
CVA Plus Variable Annuity CIGNA Reinsurance
Treaty No. 103072
Connecticut General Life Insurance Company
SCHEDULE E-3
VARIABLE ANNUITY DEATH BENEFIT
Monthly Transcation Summary
ELECTIVE OPTIONAL GMDB RIDER
-----------
Calendar Year
-----------
Reporting Month
-----------
Monthly Reinsurance Premium Calculation
-----------
1 Adjusted Aggregate Contract Value (BOM)
-----------
2 Adjusted Aggregate Contract Value (EOM)
-----------
3 Average Annuity Value [(1+2)/2]
-----------
4 Monthly Fund Based Premium Rate 0.00010833
-----------
5 Monthly Earned Premium [3*4]
-----------
6 Advanced Premium Current Month [2*4]
-----------
7 Net Premium Due [5+6]
-----------
Actual Claims
-----------
8 Monthly Reinsurance Amount*
-----------
Net Transaction
-----------
9 Premium Due Reinsurer [Sum 7]
-----------
10 Monthly Reinsurance Claims [Sum 8]
-----------
11 Prior Adjustment (attach explanation)
-----------
12 Amount Due to (from) Reinsurer [9-10+11]
-----------
* Monthly Reinsurance Amount is defined as the aggregate sum of all
claims settled during a Month.
--------------------------------------------------------------------------------
Life Insurance Company of Virginia [LOGO]
CVA Plus Variable Annuity CIGNA Reinsurance
Treaty No. 103072
Connecticut General Life Insurance Company
SCHEDULE E-4
VARIABLE ANNUITY DEATH BENEFIT
Monthly Transcation Summary
ADDITIONAL ENHANCEMENT GMDB RIDER
-----------
Calendar Year
-----------
Reporting Month
-----------
Monthly Reinsurance Premium Calculation
-----------
1 Adjusted Aggregate Contract Value (BOM)
-----------
2 Adjusted Aggregate Contract Value (EOM)
-----------
3 Average Annuity Value [(1+2)/2]
-----------
4 Monthly Fund Based Premium Rate 0.00021667
-----------
5 Monthly Earned Premium [3*4]
-----------
6 Advanced Premium Current Month [2*4]
-----------
7 Net Premium Due [5+6]
-----------
Actual Claims
-----------
8 Monthly Reinsurance Amount*
-----------
Net Transaction
-----------
9 Premium Due Reinsurer [Sum 7]
-----------
10 Monthly Reinsurance Claims [Sum 8]
-----------
11 Prior Adjustment (attach explanation)
-----------
12 Amount Due to (from) Reinsurer [9-10+11]
-----------
* Monthly Reinsurance Amount is defined as the aggregate sum of all
claims settled during a Month.
--------------------------------------------------------------------------------
Life Insurance Company of Virginia [LOGO]
CVA Plus Variable Annuity CIGNA Reinsurance
Treaty No. 103072
Connecticut General Life Insurance Company
SCHEDULE E-5
AMENDMENT NO. 1
To the Variable Annuity Reinsurance Agreement
between
THE LIFE INSURANCE COMPANY OF VIRGINIA
and
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
It is agreed by the two companies as follows:
1. To amend Schedule B of the Agreement. Therefore, the attached Schedule B
shall be substituted for the corresponding Schedule B of the Agreement.
2. All other terms and conditions of the Agreement shall remain in full force
and effect and shall be applicable to the products identified in Article II
as amended.
3. This Amendment shall be effective May 1, 1998.
In witness whereof, this amendment is signed in duplicate on the dates indicated
at the home office of each company.
THE LIFE INSURANCE COMPANY OF VIRGINIA
By: /s/ Illegible
------------------------------------------
Date: June 24, 1998
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
By: /s/ Illegible
------------------------------------------
Date: June 14, 1998
--------------------------------------------------------------------------------
The Life Insurance Company of Virginia [LOGO]
Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance
Commonwealth VA Plus Treaty
Amendment No. 1 Effective 5/1/98
Treaty No. 103072
Connecticut General Life Insurance Company
SCHEDULE B
Contracts and Funds Subject to this Reinsurance Agreement
Form Number* Policy Description Date
------------ ------------------------------------- ------
P1143 4/94 Separate Account 4 5/1/97
(F.13739) Flexible Premium Variable Deferred
Annuity Policy "Commonwealth VA Plus"
P1143 4/94 Supplement dated July 16, 1997 8/1/97
P5115 Supplement Dated July 25, 1997 8/1/97
* Includes all state variations
Fund Description
Variable Insurance Products Fund Janus Aspen Series
VIP Equity-Income Portfolio Growth Portfolio
VIP Overseas Portfolio Aggressive Growth Portfolio
Worldwide Growth Portfolio
Variable Insurance Products Fund II International Growth Portfolio
VIP Asset Manager Portfolio Balanced Portfolio
VIP Contrafund Portfolio Flexible Income Portfolio
Capital Appreciation Portfolio
GE Investments Funds, Inc.
Money Market Fund Federated Insurance Series
Government Securities Fund Federated Utility Fund II
S&P 500 Index Fund Federated High Income Bond Fund II
Total Return Fund Federated American Leaders Fund II
International Equity Fund
Real Estate Securities Fund The Xxxxx American Fund
Global Income Fund Xxxxx American Small Capitalization
Portfolio
Value Equity Fund Xxxxx American Growth Portfolio
GEI US Equity
PBHG Insurance Series Fund, Inc.
Xxxxxxxxxxx Aggressive Growth, Formerly Growth II Portfolio
Xxxxxxxxxxx Variable Account Funds Large Cap Growth Portfolio
Xxxxxxxxxxx High Income Fund
Xxxxxxxxxxx Bond Fund Variable Insurance Products Fund III
Xxxxxxxxxxx Capital Appreciation Fund VIP Growth & Income Portfolio
Xxxxxxxxxxx Growth Fund VIP Growth Opportunities Portfolio
Xxxxxxxxxxx Multiple Strategies Fund
Xxxxxxx Xxxxx Fund
GSF Growth and Income
GSF Mid Cap Equity
--------------------------------------------------------------------------------
The Life Insurance Company of Virginia [LOGO]
Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance
Commonwealth VA Plus Treaty
Amendment No.1 Effective 5/1/98
Treaty No. 103072
Connecticut General Life Insurance Company
AMENDMENT NO. 2
To the Variable Annuity Reinsurance Agreement
Effective Date of August 1, 1997
between
GE LIFE AND ANNUITY ASSURANCE COMPANY (GE Life)
(formerly THE LIFE INSURANCE COMPANY OF VIRGINIA)
and
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
It is agreed by the two companies as follows:
1. To amend Schedule B of the Agreement. Therefore, the attached Schedule B
shall be substituted for the corresponding Schedule B of the Agreement.
2. To amend Article III, entitled Automatic Excess Reinsurance, of the
Agreement. Therefore, the following language shall be substituted for the
corresponding Article III of the Agreement:
ARTICLE III - AUTOMATIC EXCESS REINSURANCE
A. On and after the Effective Date of this Agreement, subject to the
limit of Connecticut General's liability set forth in Schedule A and
all other terms, conditions and limitations set forth in this
Agreement and the Schedules attached to and made a part hereof, GE
Life shall cede and Connecticut General shall accept fifty (50)
percent of GE Life's guaranteed death benefit liability under the
Variable Annuity Contracts, as described in Article II A.
B. This Agreement covers only fifty (50) percent of GE Life's liability
for claims paid under Variable Annuity Contracts written on forms and
investment in funds which were reviewed by Connecticut General prior
to their issuance. Forms, as supplemented by additional materials, and
funds available as of the date of this Agreement are listed on
Schedule B. If GE Life intends to cede to Connecticut General
liability with respect to a new form or fund, or a revised version of
an approved form or fund, it must provide to Connecticut General
written notice of such intention together with a copy of the proposed
form, fund or revision. Connecticut General shall have no liability
pursuant to new or revised forms or funds unless and until Connecticut
General provides written notice to GE Life that such new or revised
forms or funds are acceptable.
--------------------------------------------------------------------------------
GE Life and Annuity Assurance Company
Variable Annuity Death Benefit Reinsurance
Commonwealth VA Plus Treaty
Amendment No. 2 Effective 5/1/98
Treaty No. 103072
C. GE Life shall provide written notice to Connecticut General of any
changes in its published limits and rules identified on Schedule C,
and Connecticut General shall have no liability pursuant to revised
limits and rules unless and until Connecticut General provides written
notice to GE Life that such revised limits and rules are acceptable.
3. All other terms and conditions of the Agreement shall remain in full force
and effect and shall be applicable to the products identified in Article II
as amended.
4. This Amendment shall be effective May 1, 1998.
In witness whereof, this amendment is signed in duplicate on the dates indicated
at the home office of each company.
GE LIFE AND ANNUITY ASSURANCE COMPANY
By: /s/ Xxxxx X. Xxxxxx
---------------------------------
Name: Xxxxx X. Xxxxxx
Title: Sr VP
Date: June 21, 2002
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
By: /s/ Illegible
---------------------------------
Name: Xxxxx X. Xxxxxxx
Title: Illegible
Date: June 5, 2002
--------------------------------------------------------------------------------
GE Life and Annuity Assurance Company
Variable Annuity Death Benefit Reinsurance
Commonwealth VA Plus Treaty
Amendment Xx. 0 Xxxxxxxxx 0/0/00
Xxxxxx Xx. 000000
SCHEDULE B
Contracts and Funds Subject to this Reinsurance Agreement
Form Number* Policy Description Date
------------ ------------------------------------- ------
P1143 4/94 Separate Account 4 5/1/97
(F.13739) Flexible Premium Variable Deferred
Annuity Policy "Commonwealth VA Plus"
P1143 4/94 Supplement dated July 16, 1997 8/1/97
P5115 Supplement Dated July 25, 1997 8/1/97
* Includes all state variations
Fund Description
Fidelity Variable Insurance Products Fund Janus Aspen Series
VIP Equity-Income Portfolio Growth Portfolio
VIP Overseas Portfolio Aggressive Growth Portfolio
VIP growth Portfolio Worldwide Growth Portfolio
International Growth Portfolio
Fidelity Variable Insurance Products Fund II Balanced Portfolio
VIP Asset Manager Portfolio Flexible Income Portfolio
VIP Contrafund Portfolio Capital Appreciation Portfolio
Global Life Sciences Portfoilo
GE Investments Funds, Inc. Global Technology Portfolio
Money Market Fund
S&P 500 Index Fund Federated Insurance Series
Total Return Fund Federated Utility Fund II
International Equity Fund Federated High Income Bond Fund II
Real Estate Securities Fund Federated American Leaders Fund II
Global Income Fund
Mid-Cap Value Equity Fund The Xxxxx American Fund
GEI US Equity Xxxxx American Small Capitalization Portfolio
Income Fund Xxxxx American Growth Portfolio
Premier Growth Equity Fund
PBHG Insurance Series Fund, Inc.
Xxxxxxxxxxx Variable Account Funds Growth II Portfolio
Xxxxxxxxxxx High Income Fund Large Cap Growth Portfolio
Xxxxxxxxxxx Bond Fund
Xxxxxxxxxxx Capital Appreciation Fund Fidelity Variable Insurance Products Fund III
Xxxxxxxxxxx Aggressive Growth Fund VIP Growth & Income Portfolio
Xxxxxxxxxxx Multiple Strategies Fund VIP Growth Opportunities Portfolio
Salomon Brothers Variable Series Funds Inc. Xxxxxxx Xxxxx Fund
Salomon Investors Fund GSF Growth and Income
Salomon Strategic Bond Fund GSF Mid Cap Equity
Salomon Total Return Fund
--------------------------------------------------------------------------------
GE Life and Annuity Assurance Company
Variable Annuity Death Benefit Reinsurance
Commonwealth VA Plus Treaty
Amendment Xx. 0 Xxxxxxxxx 0/0/00
Xxxxxx Xx. 000000
