AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM
REINSURANCE AGREEMENT
between
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
and
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
Effective: January 1, 2002
ARTICLES
I. Parties to the Agreement 3
II. Reinsurance Coverage 3
III. Liability 5
IV. Notification of Reinsurance 6
V. Reinsurance Premiums 6
VI. Reserves 8
VII. Oversights 9
VIII. Reductions, Terminations, and Changes 9
IX. Increase in Retention 11
X. Reinstatement 11
XI. Expenses 12
XII. Claims 12
XIII. Extra-Contractual Damages 14
XIV. Inspection of Records 15
XV. DAC Tax -- Section 1.848-2 (g)(8) Election 15
XVI. Insolvency 16
XVII. Offset 17
XVIII. Arbitration 17
XIX. Termination 19
XX. General Provisions 19
XXI. Confidentiality 21
XXII. Notices and Communications 21
XXIII. Effective Date 23
XXIV. Execution 23
SCHEDULES
A. Plans Covered under This Agreement 24
B. Basis of Reinsurance 26
EXHIBITS
I. Reinsurance Premium Calculation 27
II. Retention, Binding, and Issue Limits 28
III. LS Limits & Retention- LS Worksheet 29
IV. Xxxxx Program 30
V. Directors Charitable Award Program (DCAP) 31
VI. Annual per 1000 YRT Reinsurance Rates 33
ALL SCHEDULES AND EXHIBITS ATTACHED WILL BE CONSIDERED PART OF THIS
REINSURANCE
AGREEMENT.
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ARTICLE I
PARTIES TO THE AGREEMENT
This Agreement is between Hartford Life and Annuity Insurance Company (referred
to as the Ceding Company), and Transamerica Occidental Life Insurance Company
(referred to as the Reinsurer).
The acceptance of risks under this Agreement will create no right or legal
relationship between the Reinsurer and the insured owner or beneficiary of any
insurance policy or contract of the Ceding Company. This Agreement will be
binding upon the Ceding Company and the Reinsurer and their respective
successors and assignees.
ARTICLE II
REINSURANCE COVERAGE
Reinsurance under this Agreement will apply to insurance issued by the Ceding
Company on the Plans of Insurance shown in Schedule A. Such Plans of Insurance
shall be reinsured with the Reinsurer on an automatic basis, subject to the
requirements set forth in Section A below, or on a facultative basis, subject to
the requirements set forth in Section B below, or on a facultative obligatory
basis, subject to the requirements set forth in Section C below. The
specifications for all reinsurance under this Agreement are provided in Schedule
B.
A. Requirements for Automatic Reinsurance
For risks which meet the requirements for Automatic Reinsurance as set forth
below, the Reinsurer will participate in a reinsurance pool whereby the
Reinsurer will automatically reinsure a portion of the insurance risks as
indicated in Schedule B. The requirements for Automatic Reinsurance are as
follows:
1. Each life must be a resident of the United States or Canada at the
time of application.
2. Each life must be underwritten according to the Ceding Company's
standard underwriting practices and guidelines. Any life falling
into the category of special underwriting programs will be excluded
from this Agreement unless previously agreed to by the Reinsurer via
a written amendment. Any proposed changes to the Ceding Company's
standard underwriting practices or guidelines shall be submitted to
the Reinsurer for written approval prior to implementation that
impact business reinsured under this Agreement (i.e. underwriting
manuals, age and amount underwriting cards, and special underwriting
programs).
3. Any risk offered on a facultative basis other than for size by the
Ceding Company to the Reinsurer or any other company will not
qualify for Automatic Reinsurance under this Agreement for the same
risk and same life.
4. The minimum issue age will be 18 and the maximum issue age will be
90.
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B. Requirements for Facultative Reinsurance
1. If the requirements for Automatic Reinsurance are met, but the
Ceding Company prefers to apply for Facultative Reinsurance with the
Reinsurer, or if the requirements for Automatic Reinsurance are not
met and the Ceding Company applies for Facultative Reinsurance with
the Reinsurer, then the Ceding Company must submit to the Reinsurer
all the papers, facsimiles, or sufficient evidence agreed upon
between the Ceding Company and the Reinsurer relating to the
insurability of each life for Facultative Reinsurance.
2. For applications for Facultative Reinsurance, the Ceding Company
will send copies of all of the papers or facsimiles relating to the
insurability of each life to the Reinsurer, with the exception of
situations where one life is uninsurable. In those situations, only
the papers or facsimiles on the insurable life will be sent. After
the Reinsurer has examined the request, the Reinsurer will promptly
notify the Ceding Company of the underwriting offer subject to
additional requirements or the final underwriting offer. The final
underwriting offer on the risk will automatically terminate upon the
earlier of the withdrawal of the application or (90) ninety days
from the date of the final offer, unless coverage is accepted or put
in place earlier. This (90) day limitation will be indicated by the
Reinsurer on the final reinsurance offer.
3. Notwithstanding the above, if the requirements for Automatic
Reinsurance are met except that the face amount of reinsurance
applied for is greater than the Automatic Issue Limit, but does not
exceed the Automatic Processing Limit, then the Ceding Company will
submit to the Lead Reinsurer (as designated in Schedule B) all
papers relating to the insurability of each life. The Lead Reinsurer
shall review the papers to determine if the risk should be reinsured
by the pool, and, if so, on what basis. The Lead Reinsurer shall
provide the Ceding Company with a response within 24 hours of
receipt of the papers. Approval of the Lead Reinsurer shall be
binding on all other pool members. This process shall be known as
Automatic Processing and subject to the limitations in Exhibits II
and III.
C. Requirements for Facultative Obligatory Reinsurance
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The Reinsurer agrees to a facultative obligatory arrangement whereby the Ceding
Company may cede a risk to the Reinsurer and the Reinsurer agrees to accept the
risk using the Ceding Company's underwriting evaluation, subject to the
following conditions:
1. The requirements for Automatic Reinsurance specified in Article II
must be met with one exception. This exception is that the total
amount of insurance issued and applied for in all companies on each
risk has exceeded the jumbo limits set forth in Exhibits II and III.
2. The arrangement is available on all policy forms covered under this
Reinsurance Agreement.
3. The ceded risk is subject to the Facultative Obligatory Automatic
Binding Limits and the Facultative Obligatory Automatic Issue
Limits, as stated in Exhibits II and III. However, to the extent
that the Reinsurer has already filled its available capacity on the
risk, the Reinsurer may deny or reduce the requested capacity by
notifying the Ceding Company. In addition, the Reinsurer may choose
to provide Facultative Obligatory capacity greater than as specified
in Schedule B.
4. The Reinsurer will have a reasonable amount of time, but not to
exceed two (2) business days, to respond to the Ceding Company's
request for a Facultative Obligatory risk.
D. Basis of Reinsurance
Reinsurance under this Agreement will be on the basis as stated in Schedule B.
E. Policy Forms
When requested, the Ceding Company will furnish the Reinsurer with a copy of
each policy, rider, rate book, and applicable sales or marketing material that
applies to the life insurance reinsured hereunder.
ARTICLE III
LIABILITY
A. The Reinsurer's liability for Automatic and Facultative Obligatory
Reinsurance will begin simultaneously with the Ceding Company's liability.
B. The Reinsurer's liability for Facultative Reinsurance coverage will begin
simultaneously with the Ceding Company's liability once the Reinsurer has
accepted the application for Facultative Reinsurance and the Ceding Company has
accepted the offer.
C. In no event shall the reinsurance be in force and binding if the issuance
and delivery of such insurance constituted the doing of business in a
jurisdiction in which the Ceding Company was not properly licensed.
D. The Reinsurer's liability for reinsurance on each risk will terminate when
the Ceding Company's liability terminates.
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E. The Reinsurer will not be liable for benefits paid under the Ceding
Company's conditional receipt or temporary insurance agreement unless all the
conditions for the conditional receipt or temporary insurance agreement are met.
The Reinsurer's liability under the Ceding Company's conditional receipt or
temporary insurance agreement is limited to the lesser of (1) or (2) below:
1. The amount for which the Ceding Company is liable, less its
retention shown in Exhibit II, or
2. The face amount of the application subject to the maximum of the
amount provided by the Ceding Company's Conditional Receipt
Application or Temporary Insurance Agreement.
The pre-issue liability applies provided that the Ceding Company has followed
its normal cash-with-application procedures for such coverage. After a policy
has been issued, no reinsurance benefits are payable under this pre-issue
coverage provision.
F. The liability of each pool member shall be separate and not joint with the
other pool members.
G. The Reinsurer shall establish reserves on the Reinsurer's portion of the
policy on the reserve basis specified in Article VI.
ARTICLE IV
NOTIFICATION OF REINSURANCE
A. For Automatic and Facultative Reinsurance, the Ceding Company will notify
the Reinsurer on the monthly statement as described in Article V.
B. When reinsurance is reduced or changed, the Ceding Company will notify the
Reinsurer on the monthly accounting statement.
ARTICLE V
REINSURANCE PREMIUMS
A. Computation
Premiums for reinsurance under this Agreement will be computed as described in
Exhibit I.
B. Premium Accounting
1. Payment of Reinsurance Premiums
For Automatic and Facultative Reinsurance, following the close of each
calendar month, the Ceding Company will send the Reinsurer a statement
and a listing of new business, changes, and terminations. The
Reinsurer will refund to the Ceding Company all unearned Annual YRT
Reinsurance Premiums not including policy fees, less applicable
allowances, arising from reductions, terminations and changes as
described in Article VIII.
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Reinsurance Premiums, as calculated in Exhibit I, based on the
Reinsured Net Amount at Risk, as defined in Schedule B, are paid
annual in advance each month for those policies renewing during that
month.
If a net reinsurance premium balance is payable to the Reinsurer, the
Ceding Company will forward this balance within (30) thirty days after
the close of each month. If a net reinsurance premium balance is
payable to the Ceding Company, the balance due will be subtracted from
the reinsurance premium payable by the Ceding Company for the current
month.
The reinsurance premiums for all of the reinsurance risks listed on
the statement will be delinquent if the net reinsurance premium
balance is not received or paid within (30) thirty days after the
close of the month.
When the reinsurance premiums are deemed delinquent, as defined above,
a compound interest penalty may be assessed each month the premiums
remain delinquent. Interest shall be calculated from the day following
the date the premiums are due and payable to the day such premium
payment is mailed or the last day of the accounting period, whichever
comes first, regardless of holidays and weekends. The rate of interest
charged each month shall be the lesser of (i) the 30 Day Treasury Bill
rate as published in the Money Rate Section or any successor section
of the Wall Street Journal on the first business day following the
date the premiums are deemed delinquent or (ii) the maximum rate
allowed by law in the State of
Connecticut. Premiums and interest
penalties that remain unpaid shall be carried forward into the next
month's interest penalty calculation.
2. Termination Because of Non-Payment of Premium
If undisputed reinsurance premiums are delinquent, the Reinsurer has
the right to terminate the reinsurance risks on those policies listed
on the delinquent monthly statement by giving the Ceding Company (90)
ninety days advance written notice. If the delinquent premiums have
not been paid as of the close of this (90) ninety-day period, the
Reinsurer's liability will terminate for the risks described in the
delinquency notice.
Regardless of the termination, the Ceding Company will continue to be
liable to the Reinsurer for all unpaid reinsurance premiums earned up
to the date of termination.
3. Reinstatement of a Delinquent Statement
The Ceding Company may reinstate the terminated risks within (60)
sixty days after the effective date of termination by paying the
unpaid reinsurance premiums for the risks in force prior to the
termination. However, the Reinsurer will not be liable for any claim
incurred between the date of termination and reinstatement. The
effective date of reinstatement will be the day the Reinsurer receives
the required back premiums and any assessed interest.
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4. Currency
The reinsurance premiums and benefits payable under this Agreement
will be payable in the lawful money of the United States.
5. Detailed Listing
Before the end of the first quarter, the Ceding Company will send the
Reinsurer a detailed listing of all reinsurance in force as of the
close of the immediately preceding calendar year.
6. Guaranteed Rates
The Reinsurer reserves the right to increase reinsurance premiums only
if the Ceding Company increases the rates (including monthly
administrative charge, mortality and expense risk rates, face amount
mortality and expense risk rate per 1000, and cost of insurance rates)
to the policy owner. If the increase to these reinsurance premiums are
more than proportional to the increase to the policy owners' cost of
insurance rates, the Ceding Company will have the right to recapture
the business as of the date of the notice of rate change.
7. Overpayment of Premium
If the Ceding Company overpays a reinsurance premium and the Reinsurer
accepts the overpayment, the Reinsurer's acceptance will not
constitute nor create a reinsurance liability nor result in any
additional reinsurance. Instead, the Reinsurer will be liable to the
Ceding Company for a credit in the amount of the overpayment.
8. Underpayment of Premium
If the Ceding Company fails to make a full premium payment for a
policy or policies reinsured hereunder, due to an oversight defined in
Article VII, the amount of reinsurance coverage provided by the
Reinsurer shall not be reduced. However, once the underpayment is
discovered, the Ceding Company will be required to pay to the
Reinsurer the difference between the full premium amount and the
amount actually paid, without interest. If payment or the full premium
is not made within (60) sixty days after the discovery of the
underpayment, the underpayment shall be treated as a failure to pay
premiums and subject to the conditions of Section B.2, above.
ARTICLE VI
RESERVES
A. Statutory Reserves for the Mortality Risk of the Policy
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B. Representations
The Reinsurer represents to the Ceding Company that the Reinsurer is properly
licensed or accredited so that the Ceding Company may claim statutory reserve
credit on its financial statements filed in all states in which the Ceding
Company is licensed to transact insurance business. In the event that as a
result of a change in the Reinsurer's licensing or accreditation status, the
Ceding Company must obtain security for statutory reserve credits taken with
respect to this
reinsurance agreement, the Reinsurer will establish a trust or
letter of credit in a form which meets all applicable standards or law and
regulation to enable the Ceding Company to claim such reserve credit on its
statutory statements. However, if the form of security to be used is other than
a trust or letter of credit, the Ceding Company shall review the alternative
method to ensure compliance with applicable laws and regulations regarding
statutory reserve credit. In the event the Ceding Company and the Reinsurer
agree on an alternative method, this Agreement will be amended to reflect the
mutually agreed upon terms applicable to such alternative method. In addition,
the Reinsurer may novate this Agreement to a licensed or accredited affiliate,
which is acceptable to the Ceding Company. The Reinsurer will bear all expense
of establishing any trusts, or letter of credit or other means of securing the
Ceding Company's statutory reserve credit.
ARTICLE VII
OVERSIGHTS
If there is an unintentional oversight, misunderstanding, delay or error in the
administration of this Agreement by the Ceding Company or the Reinsurer, it can
be corrected provided the correction takes place within a reasonable time after
the oversight, misunderstanding, delay, or error is first discovered. Both the
Ceding Company and the Reinsurer will be restored to the position they would
have occupied had the oversight or misunderstanding not occurred. Should it not
be possible to restore both parties to such a position, the Ceding Company and
the Reinsurer shall negotiate in good faith to equitably apportion any resulting
liabilities and expenses.
ARTICLE VIII
REDUCTIONS, TERMINATIONS AND CHANGES
A. Replacement or Change
If there is a contractual change, the insurance will continue to be reinsured
with the Reinsurer at joint life point-in-scale rates.
Exchanges from one last survivor plan reinsured under this Agreement to a
different last survivor plan will be reinsured at joint life point-in-scale
rates. Exchanges from one last survivor plan reinsured under this Agreement with
the Last Survivor Exchange Option Rider (24) or Twenty Four Month Exchange Rider
to two single life plans will be reinsured at single life point-in-scale rates.
An exchange is a new policy replacing an existing policy where the new policy is
not fully underwritten.
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B. Increases or Decreases
1. If the policy face amount of a risk reinsured automatically under
this Agreement increases and:
a. The increase is subject to new underwriting evidence, then the
provisions of Article II, Section A, shall apply to the increase
in reinsurance.
b. The increase is not subject to new underwriting evidence; the
Reinsurer will accept the increase in reinsurance at point-in-scale
rates but not to exceed the Automatic Binding Limit.
2. If the policy face amount increases, the Ceding Company's retention
will be filled first, and then any remaining risk of the increase
will be ceded to the Reinsurer as of the effective date of the
increase. If the policy face amount is reduced, the reinsurance will
be reduced first, thereby maintaining the Ceding Company's
retention.
3. In the event of a reduction in the face amount of a policy, which
was ceded facultatively, the Reinsurer's percentage of the reduced
face amount shall be the same percentage as set at issue.
4. A request to increase the face amount of policies that are reinsured
on a facultative basis will be submitted to the Reinsurer for
acceptance.
C. Reduction in Retained Coverage
If any portion of the aggregate insurance retained by the Ceding Company on a
risk reduces or terminates, the Ceding Company will recalculate its retention on
any remaining risk(s) inforce with the intent of holding the appropriate
retention under each applicable
reinsurance agreement.
The retention limit, which was in effect at the time that each remaining risk
was issued, will be used. The Ceding Company will not be required to retain an
amount in excess of its regular retention limit for the age, mortality rating,
and risk classification at the time of issue for any policy. The Ceding Company
will first recalculate the retention on the policy(ies) having the same
mortality rating as the terminated policy(ies). Order of recalculation will
secondarily be determined by policy effective date, oldest first.
D. Multiple Reinsurers
If a risk is shared by more than one reinsurer, the Reinsurer's percentage of
any increased or reduced reinsurance will be the same as its initial percentage
of the reinsurance for that risk.
E. Termination
If the policy for a risk reinsured under this Agreement is terminated, the
reinsurance for the risk involved will be terminated on the effective date of
termination.
F. Mortality Rating
On Automatic Reinsurance, if the Ceding Company requests a change to the risk
class or substandard rating, such change will be underwritten according to the
Ceding Company's normal underwriting practices and the Reinsurer will accept
this change.
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Mortality rating changes on a facultative basis will be subject to the
Reinsurer's approval.
ARTICLE IX
INCREASE IN RETENTION
A. If the Ceding Company should increase the retention limits as listed in
Exhibits II and Ill, prompt written notice of the increase must be given to the
Reinsurer.
B. In the event of an increase in retention, the Ceding Company will have the
option of recapturing the reinsurance up to the increased retention under this
Agreement. The Ceding Company may exercise its option to recapture by giving
written notice to the Reinsurer within (90) ninety days after the effective date
of the increase.
C. If the Ceding Company exercises its option to recapture, then:
1. The Ceding Company must reduce the reinsurance on each risk on which
the Ceding Company retained the maximum retention limit for the age
and mortality rating that was in effect at the time the reinsurance
was ceded to the Reinsurer.
2. No recapture will be made to reinsurance on a risk if (a) the Ceding
Company retained a special retention limit less than the maximum
retention limit for the age and mortality rating in effect at the
time the reinsurance was ceded to the Reinsurer, or if (b) the
Ceding Company did not retain insurance on the risk.
3. The Ceding Company must increase its total amount of insurance on a
risk up to the new retention limit by reducing the reinsurance. If a
risk is shared by more than one reinsurer, the Reinsurer's
percentage of the reduced reinsurance will be the same as the
initial reinsurance on the risk.
4. The reduction in reinsurance will become effective on the next
annual premium anniversary after the individual policy has been
inforce for at least ten (10) years.
5. If more than one policy per life is eligible for recapture, then the
eligible policies may be recaptured beginning with the policy with
the earliest issue date and continuing in chronological order
according to the remaining policies' issue dates.
ARTICLE X
REINSTATEMENT
If an insurance policy lapses for nonpayment of premium and is reinstated under
the Ceding Company's terms and rules, the Reinsurer will reinstate the
reinsurance as follows:
A. Automatic Cases
The Ceding Company must pay the Reinsurer all back reinsurance premiums in the
same manner as the Ceding Company received insurance charges under the policy.
When the policy is reinstated by the Ceding Company, the reinsurance will be
automatically reinstated.
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B. Facultative Cases
If the Ceding Company requires reinstatement evidence of insurability, the
Ceding Company will submit it to the Reinsurer for approval. In such cases, the
Reinsurer's approval is required for the reinsurance to be reinstated. Upon the
Reinsurer's approval, the Ceding Company must pay the Reinsurer all back
reinsurance premiums in the same manner as the Ceding Company received insurance
premium under the policy.
C. Nonforfeiture Reinsurance Termination
If the Ceding Company has been requested to reinstate a policy that was
reinsured while on extended term or reduced paid-up, then such reinsurance will
terminate and either automatic or facultative reinstatement procedures will be
followed as outlined above in this Article.
ARTICLE XI
EXPENSES
The Ceding Company must pay the expense of all medical examinations, inspection
fees and other charges in connection with the issuance of the insurance.
ARTICLE XII
CLAIMS
A. Liability
If the Ceding Company is liable for insurance benefits on a policy reinsured
under this Agreement, the Reinsurer shall be liable for its portion of the
reinsurance on that policy, as described in Schedule B. All reinsurance claim
settlements will be subject to the terms and conditions of the particular
contract and statutory requirements under which the Ceding Company is liable.
B. Notification
When the Ceding Company is advised of a claim, the Reinsurer must be notified
promptly in writing.
C. Claim Payment
1. Automatic and Facultative Obligatory Reinsurance on a Risk
If a claim is made under insurance reinsured under this Agreement,
Reinsurer will abide by the issue as it is settled by the Ceding
Company. Copies of proofs or other written matters relating to any
claim reimbursements under this Agreement shall be furnished to the
Reinsurer upon written request.
2. Facultative Reinsurance on a Risk
If a claim is made on a risk reinsured facultatively under this
Agreement, the Ceding
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Company shall submit to the Reinsurer all relevant and/or requested
documents and papers related to the claim along with the Ceding
Company's recommendation. The Ceding Company shall then wait (10) ten
days from the date of mailing during which time the Reinsurer shall
have the opportunity to advise the Ceding Company of its consent or
disagreement with the recommendation. In the event the Reinsurer does
not contact the Ceding Company within the (10) ten-day period, the
Reinsurer shall be deemed to have approved the recommendation and the
Ceding Company shall be authorized to act accordingly.
3. Payment of Reinsurance Proceeds
The Ceding Company will deliver a copy of the proof of death, check
copy or proof of payment, and the claimant's statement to the
Reinsurer. The Reinsurer will pay the Ceding Company the reinsurance
proceeds within fifteen (15) days of final notification of the Ceding
Company making the final decision to pay the policy proceeds.
The Reinsurer shall reimburse the Ceding Company for its proportionate
share of any interest paid on claims. Participation in accrued
interest by the Reinsurer shall be in accordance with the applicable
state statutory regulations.
Payment of life reinsurance proceeds will be made in a single sum
regardless of the Ceding Company's mode of settlement with the payee.
4. Recapture
If an undisputed net amount is (60) sixty days past due, for reasons
other than those due to an unintentional oversight, as defined in
Article VII, the reinsurance benefits will be considered in default,
except for any reinsurance claims that are in dispute with the Ceding
Company, and the Ceding Company may recapture the reinsurance by
providing a (30) thirty day prior written notice, provided payment is
not received with that (30) thirty day period. If at the end of the
(30) thirty day period, the Reinsurer has not made payment, the Ceding
Company may recapture the policies reinsured under this Agreement as
described in Article IX.
5. Overdue Reinsurance Proceeds
The Ceding Company reserves the right to charge interest on
reinsurance proceeds. The interest will be calculated according to the
90 Day Federal Government Treasury rate as first published in the Wall
Street Journal in the month following the end of the billing period
plus 50 basis points. The method of calculation will be simple
interest "Bankers' Rule" (or 360 day year).
D. Contested Claims
The Ceding Company shall promptly notify the Reinsurer in writing of the Ceding
Company's intention to contest a claim. The Ceding Company shall provide the
Reinsurer with all papers and the Reinsurer shall have an opportunity to review
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the papers. Within (5) five working days after receipt of all the necessary
papers, the Reinsurer shall have the following options:
of any "routine expenses" or "non-routine expenses," as defined in Sections F.
and G. below, incurred with respect to such claim, nor shall the Reinsurer share
in any reduced settlement.
b) Agree to participate in the contest of the claim. If after consultation with
the Ceding Company, the Reinsurer agrees to pay its share based on the results
of the contest (agreement to be communicated by the Reinsurer to the Ceding
Company in writing), the Reinsurer will pay its share of all "routine expenses"
and "non-routine expenses," as defined in Sections F. and G. below, of the
contest.
E. Misstatement of Age or Sex
If the amount of insurance provided by the policy or policies reinsured under
this Agreement is increased or reduced because of misstatement of age or sex
established after the death of the last insured, the Reinsurer will share with
the Ceding Company in this increase or reduction.
F. Routine Expenses
The Ceding Company will pay the routine expenses incurred in connection with
settling claims. These expenses may include compensation of agents and employees
and the cost of routine investigations.
G. Non-Routine Expenses
The Reinsurer will share with the Ceding Company all expenses that are not
routine. Expenses that are not routine are those directly incurred in connection
with the contest or the possibility of a contest of a claim or the assertion of
defenses, including legal expenses. The expenses will be shared in proportion to
the Total Net Amount at Risk, as defined in Schedule B, for the Ceding Company
and the Reinsurer. However, if the Reinsurer has released the liability under
Section D of this Article, the Reinsurer will not share in any expenses incurred
after the date of the Reinsurers release.
H. Return of Premium for Misrepresentations and Suicides
If a misrepresentation on an application or a death of an insured risk by
suicide results in the Ceding Company returning the policy premiums to the
policy owner rather than paying the policy benefits, the Reinsurer will refund
all of the reinsurance premiums it received on that policy to the Ceding
Company. This refund given by the Reinsurer will be in lieu of all other
reinsurance benefits payable on that policy under this Agreement.
I. Contestable Period
If the Ceding Company is notified of the first or second death of an insured
during the contestable period, the Ceding Company will investigate the case if,
at original underwriting that insured was determined to be an insurable risk.
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ARTICLE XIII
EXTRA-CONTRACTUAL DAMAGES
In no event will the Reinsurer have any liability for any extra-contractual
damages, which are awarded against the Ceding Company as a result of acts,
omissions, or course of conduct committed solely by the Ceding Company with no
involvement of the Reinsurer in connection with the insurance reinsured under
this Agreement. The Reinsurer will however, pay its share of punitive and/or
compensatory damages and/or statutory penalties awarded against the Ceding
Company in connection with benefits reinsured under this Agreement if the
Reinsurer agreed to such act or course of conduct of the Ceding Company that
resulted in the assessment of such damages.
The Reinsurer recognizes that circumstances may arise under which the Reinsurer,
in equity, should share, to the extent permitted by law, in paying certain
assessed damages. The Reinsurer may be liable for any punitive, statutory or
compensatory damages awarded or assessed against the Ceding Company if 1) the
Reinsurer elected to join in the contest or denial of the claim, in writing, and
2) in writing, recommended, consented to, or ratified the act or course of
conduct of the Ceding Company that ultimately resulted in the assessment of the
extra-contractual damages. The extent of such participation by the Reinsurer is
dependent upon a good faith assessment of culpability in such case to be
determined by the Ceding Company and the Reinsurer. If the parties are unable to
agree on the proportionate shares of culpability, the issue will be determined
in accordance with Article XVIII (Arbitration).
ARTICLE XIV
INSPECTION OF RECORDS
Either company, their respective employees or authorized representatives, may
audit, inspect and examine, during regular business hours, at the home office of
either company, any and all books, records, statements, correspondence, reports,
other documents that relate to the Reinsurance under this Agreement. The audited
party agrees to provide a reasonable workspace for such audit, inspection or
examination and to cooperate fully and to faithfully disclose the existence of
and produce any and all necessary and reasonable materials requested by such
auditors, investigators, or examiners. The company performing a routine audit
shall contact the other party to determine a reasonable timeframe for the audit.
The expense of the respective party's employee(s) or authorized
representative(s) engaged in such activities will be borne solely by such party.
ARTICLE XV
DAC TAX
SECTION 1.848-2(G) (8) ELECTION
A. The Ceding Company and the Reinsurer jointly agree to the DAC Tax Election
pursuant to Section 1.848-2(g)(8) of the Income Tax Regulations (the "Treasury
Regulations") issued under Section 848 of the Internal Revenue Code of 1986, as
amended (the "Code") whereby:
(i) The party with the net positive consideration for this Agreement for
each taxable year will capitalize specified policy acquisition
expenses with respect to this
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Agreement without regard to the general deductions limitation of Code
section 848(c)(1); and
(ii) Both parties agree to exchange information pertaining to the amount
of net consideration under this Agreement each year to ensure
consistency.
B. As used in this Article XV, the terms "net positive consideration",
"specified policy acquisition expenses" and "general deductions limitation" are
defined by reference to Treasury Regulations Section 1.848-2 and Code Section
848 as of January 1, 2002.
C. The method and timing of the exchange of this information shall be as
follows:
(i) The Ceding Company shall submit a schedule to the Reinsurer by May 1
of each year of its calculation of the net consideration for the
preceding calendar year.
(ii) The Reinsurer shall, in turn, complete the schedule by indicating
acceptance of the Ceding Company's calculation of net consideration
or shall note in writing any discrepancies. The Reinsurer shall
return the completed schedule to the Ceding Company by June 1 of
each year.
(iii) If there are any discrepancies between the Ceding Company's and the
Reinsurer's calculation of net consideration, the parties shall act
in good faith to resolve these discrepancies in a manner that is
acceptable to both parties by July 1 of each year.
(iv) Each party shall attach the final schedule to their respective U.S.
federal income tax returns for each taxable year in which
consideration is transferred under this Agreement. The schedule
shall identify this Agreement and restate the election described in
this Article XV and shall be signed by both parties.
D. This DAC Tax Election shall be effective on the effective date of this
Agreement and shall be effective for all years for which this Agreement remains
in effect.
E. The Ceding Company and the Reinsurer each represent and warrant that they
are subject to U.S. taxation under either the provisions of Subchapter L of
Chapter 1 or Subpart F of Part III of Subchapter N of Chapter 1 of the Code.
F. Should the Reinsurer breach the representation and warranty of tax status
set forth in this Article of this Agreement, the Reinsurer agrees to indemnify
and hold the Ceding Company, its directors, officers, employees, agents, and
shareholders harmless from any liability and all liability, loss, damages,
fines, penalties, interest, and reasonable attorney's fees, which the Ceding
Company, its directors, officers, employees, agents, and shareholders may
sustain by reason of such breach.
ARTICLE XVI
INSOLVENCY
A. Insolvency of the Reinsurer
If the Reinsurer becomes insolvent as determined by the Regulatory Agency
responsible
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for such determination, amounts due the Reinsurer will be paid net of the terms
of this Agreement and directly to the liquidator, receiver, or statutory
successor without decrease. In addition, upon the Reinsurer's insolvency, the
Ceding Company may cancel this Agreement for future new business as described in
Article XIX. All reinsurance ceded under this Agreement may be recaptured by the
Ceding Company as of the date the Reinsurer fails to meet its obligations under
this Agreement.
B. Insolvency of the Ceding Company
If the Ceding Company should become insolvent, as determined by the Regulatory
Agency responsible for such determination, all reinsurance under this Agreement
covering risks ceded by the Ceding Company will be payable by the Reinsurer
directly to the Ceding Company's liquidator, receiver or statutory successor, on
the basis of the liability of the Ceding Company under the policy or policies
reinsured and without diminution because of the insolvency of the Ceding
Company. However, in the event of such insolvency, the liquidator, receiver, or
statutory successor will give written notice of a pending claim against the
Ceding Company on the reinsured policy. It will do so within a reasonable time
after the claim is filed in the insolvency proceedings. During the pendency of
such a claim, the Reinsurer may investigate the claim and may, at its own
expense, interpose any defense or defenses which it may deem available to the
insolvent Ceding Company, its liquidator, receiver, or statutory successor, in
the proceedings where the claim is to be adjudicated.
The expense thus incurred by the Reinsurer will be chargeable against the
insolvent Ceding Company, subject to court approval, as part of the expense of
liquidation to the extent of a proportionate share of the benefit which may
accrue to the insolvent Ceding Company solely as a result of the defense
undertaken by the Reinsurer.
Where two or more reinsurers are involved in the same claim and a majority in
interest elects to interpose defense to the claim, the expense will be
apportioned in accord with the terms of the
reinsurance agreement as though the
expense had been incurred by the insolvent Ceding Company.
ARTICLE XVII
OFFSET
Any undisputed debts or credits, matured or unmatured, liquidated or
unliquidated, regardless of when they arose or were incurred, in favor of or
against either the Ceding Company or the Reinsurer with respect to this
Agreement, shall be offset, and only the balance shall be allowed or paid. In
the event the Ceding Company becomes insolvent, offsets shall be allowed in
accordance with applicable law.
ARTICLE XVIII
ARBITRATION
The Ceding Company and the Reinsurer mutually understand and agree that the
wording and interpretation of this Agreement is based on the usual customs and
practice of the insurance and reinsurance industry. While both the Ceding
Company and the Reinsurer agree to act in
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good faith in its dealings with each other, it is understood and recognized that
situations may arise in which they cannot reach an agreement.
In the event that any dispute cannot be resolved to mutual satisfaction, the
dispute will first be subject to good-faith negotiation as described below in an
attempt to resolve the dispute without the need to institute formal arbitration
proceedings.
Within (10) ten days after one of the parties has given the other the first
written notification of the specific dispute, each of the parties will appoint a
designated officer to attempt to resolve the dispute. The officers will meet at
a mutually agreeable location as early as possible and as often as necessary, in
order to gather and furnish the other with all appropriate and relevant
information concerning the dispute. The officers will discuss the problem and
will negotiate in good faith without the necessity of any formal arbitration
proceedings. During the negotiation process, all reasonable requests made by one
officer to the other for information will be honored. The designated officers
will decide the specific format for such discussions.
If the officers cannot resolve the dispute within (30) thirty days of their
first meeting, both parties agree that they will submit the dispute to formal
arbitration. However, the parties may agree in writing to extend the negotiation
period for an additional (30) thirty days.
No later than (15) fifteen days after the final negotiation meeting, the
officers taking part in the negotiation will give both the Ceding Company and
the Reinsurer written confirmation that they are unable to resolve the dispute
and that they recommend establishment of formal arbitration.
An arbitration panel consisting of (3) three past or present officers of life
insurance or life reinsurance companies not affiliated with either of the
parties in any way will settle the dispute. Each party will appoint one
arbitrator and the two will select a third. If the two arbitrators cannot agree
on the choice of a third within (30) thirty days following their appointment,
each arbitrator shall nominate three candidates within (10) ten days thereafter,
two of whom the other shall decline, and the decision shall be made by drawing
lots.
The Ceding Company and the Reinsurer shall bear the expense of its own
arbitrator and shall jointly bear with the other the expense of the third
arbitrator. In the absence of a decision to the contrary by the arbitration
panel, the Ceding Company and the Reinsurer shall jointly share in all other
costs of the arbitration.
The arbitration proceedings will be conducted according to the Commercial
Arbitration Rules of XXXXX-US, which are in effect at the time the arbitration
begins.
The arbitration will take place in Hartford,
Connecticut unless the parties
mutually agree otherwise.
Within (60) sixty days after the beginning of the arbitration proceedings the
arbitrators will issue a written decision on the dispute and a statement of any
award to be paid as a result. The decision will be based on the terms and
conditions of this Agreement as well as the usual customs and practices of the
insurance and reinsurance industry, rather than on strict interpretation of the
law. The decision will be final and binding on both the Ceding Company and the
Reinsurer and there will be no further appeal.
The parties may mutually agree to extend any of the negotiation or arbitration
periods shown in this Article.
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Unless otherwise decided by the arbitrators, the parties will share in their
proportion of all expenses resulting from the arbitration, including the fees
and expenses for the arbitrators, except that each party will be responsible for
its own attorneys' fees.
ARTICLE XIX
TERMINATION
A. The Ceding Company and the Reinsurer may terminate this Agreement as it
applies to the new business of each by giving (90) ninety days' written notice
of termination. The day the notice is deposited in the mail addressed to the
Home Office, or to an Officer of each party, will be the first day of the (90)
ninety-day period. In addition, this Agreement may be terminated immediately for
the acceptance of new reinsurance by either party if one of the parties becomes
insolvent as described in Article XVI.
B. During the (90) ninety-day period, this Agreement will continue to be in
force between the terminating parties.
C. After termination, the terminating parties shall remain liable under the
terms of this Agreement for all Automatic and Facultative Reinsurance that
becomes effective prior to termination of this Agreement. After termination, the
Reinsurer shall be liable for all Automatic and Facultative Reinsurance that has
an application date on or before the effective date of the termination.
ARTICLE XX
GENERAL PROVISIONS
A. Entire Contract
This Agreement with any attached Schedules and Exhibits shall constitute the
entire contract between the parties with respect to the business being reinsured
hereunder and there are no understandings between the parties other than as
expressed herein.
B. Modifications
Any modification or change to the provisions of this Agreement shall be null and
void unless set forth in a written amendment to the Agreement which is signed by
all parties to the amendment.
C. Severability
In the event that any provision or term of this Agreement shall be held by any
court, arbitrator, or administrative agency to be invalid, illegal or
unenforceable, all of the other terms and provisions shall remain in full force
and effect to the extent that their continuance is practicable and consistent
with the original intent of the parties. In addition, if any provision or term
is held invalid, illegal or unenforceable, the parties will attempt in good
faith to renegotiate the Agreement to carry out the original intent of the
parties.
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D. Survival
All provisions of this Agreement shall survive its termination to the extent
necessary to carry out the purposes of this Agreement or to ascertain and
enforce the parties' rights or obligations hereunder existing at the time of
termination.
E. Non-Waiver
No waiver by either party of any violation or default by the other party in the
performance of any promise, term or condition of this Agreement shall be
construed to be a waiver by such party of any other or subsequent default in
performance of the same or any other promise, term or condition of this
Agreement. No prior transactions or dealings between the parties shall be deemed
to establish any custom or usage waiving or modifying any provision hereof. The
failure of either party to enforce any part of this Agreement shall not
constitute a waiver by such party of its right to do so, nor shall it be deemed
to be an act of ratification or consent.
F. Governing Law
This Agreement shall be governed by the laws of the state of
Connecticut.
G. Assignment
Neither party may assign any of its rights, duties or obligations under this
Agreement without the prior written consent of the other party.
H. Counterparts
This Agreement may be executed in one or more counterparts, each of which shall
constitute an original.
I. Force Majeure
Neither party shall be liable for any delay or non-performance of any covenant
contained herein nor shall any such delay or non-performance constitute a
default hereunder, or give rise to any liability for damages if such delay or
non-performance is caused by an event of "force majeure." As used herein, the
term "Force Majeure," means an event, explosion, action of the elements, strike
or other labor relations problem, restriction or restraint imposed by law, rule
or regulation of any public authority, whether federal, state or local, and
whether civil or military, act of any military authority, interruption of
transportation facilities or any other cause which is beyond the reasonable
control of such party and which by the exercise of reasonable diligence such
party is unable to prevent. The existence of any event of Force Majeure shall
extend the term of performance on the part of such party to complete performance
in the exercise of reasonable diligence after the event of Force Majeure has
been removed.
J. No Limitation on Disclosure of Tax Treatment
Notwithstanding anything herein to the contrary, except as reasonably necessary
to comply with applicable securities laws, each party to this Agreement (and
each employee, representative, or other agent of such party) may consult any tax
advisor
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regarding the U.S. federal income tax treatment or tax structure of the
transaction (the "Tax Transaction"), and disclose to any and all persons,
without limitation of any kind, the Tax Treatment and all materials of any kind
(including opinions or other tax analyses) that are provided to such party
relating to the Tax Treatment. The permission to disclose the Tax Treatment is
limited to any facts relevant to the U.S. federal income Tax Treatment and does
not include information relating to the identity of the parties.
ARTICLE XXI
CONFIDENTIALITY
As used herein, "Confidential Information" means all of the confidential,
proprietary, or trade secret information, including, but not limited to, all
information on the Ceding Company's customers and claimants and other
information the Ceding Company discloses to the Reinsurer or the Reinsurer
discloses to the Ceding Company. The term "Confidential Information" does not
include any information which (i) at the time of disclosure or thereafter is
generally available to and known by the public other than by way of a wrongful
disclosure by a party or its Representatives; (ii) was available on a
non-confidential basis from a source other than the parties hereto or their
Representatives, provided that such source is not and was not bound by a
confidentiality agreement with a party hereto; or (iii) was independently
developed without violating any obligations under this Agreement and without the
use of any Confidential Information.
The Ceding Company and the Reinsurer shall maintain the confidentiality of the
other party's Confidential Information, shall use it only for purposes for which
it was disclosed and shall not disclose it to any other person except to
employees, agents, and other persons who need to know such Confidential
Information to carry out the purposes for which it was disclosed and who agree
to maintain the confidentiality of the information provided herein.
Notwithstanding the foregoing, it is understood and agreed that the parties will
not be prohibited from disclosing confidential information as might be necessary
for purposes of retrocession of the reinsured business, during the course of
external audits or as required or permitted by applicable law or court order.
ARTICLE XXII
NOTICES AND COMMUNICATIONS
All notices and other communications hereunder shall be in writing and shall be
either (a) personally delivered, (b) delivered by messenger, (c) sent by a
nationally recognized overnight courier, (d) sent by fully completed and
confirmed facsimile transmission or (e) deposited in the mail, registered or
certified, with postage prepaid, return receipt requested, as follows:
If to the Ceding Company: If to the Reinsurer:
Individual Life Director of Reinsurance VP of New Business Acquisition
Hartford Life Transamerica Reinsurance
000 Xxxxxxxxx Xxxxxx 000 Xxxxx Xxxxx Xxxxxx, Xxxxx 000
Xxxxxxxx, XX 00000 Xxxxxxxxx, XX 00000
Facsimile: (000) 000-0000 Facsimile: (000) 000-0000
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Copy (which shall not constitute Copy (which shall not constitute
notice) to: notice) to:
Chief Actuary Chief Actuary
Hartford Life Transamerica Reinsurance
000 Xxxxxxxxx Xxxxxx 000 Xxxxx Xxxxx Xxxxxx, Xxxxx 000
Xxxxxxxx, XX 00000 Xxxxxxxxx, XX 00000
Facsimile: (000) 000-0000
General Counsel General Counsel
Hartford Life Transamerica Reinsurance
000 Xxxxxxxxx Xxxxxx 000 Xxxxx Xxxxx Xxxxxx, Xxxxx 000
Xxxxxxxx, XX 00000 Xxxxxxxxx, XX 00000
Facsimile: (000) 000-0000 Facsimile: (000) 000-0000
Or such other address or fax number as any party may request by notice given
under this section. The foregoing shall not preclude the effectiveness of actual
written notice given to a party at any address or by any means.
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ARTICLE XXIII
EFFECTIVE DATE
The provisions of this Agreement shall be effective with respect to policies
issued on or after January 1, 2002.
ARTICLE XXIV
EXECUTION
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
By: /s/ [ILLEGIBLE] Attest: /s/ [ILLEGIBLE]
------------------------------- -------------------------------
Title: Vice President Title: Second Vice President
Date: 12/29/04 Date: 12/29/04
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxxxxx X. Xxxxxx
------------------------------- -------------------------------
Xxxxxx X. Xxxxxxxx, FSA, XXXX Xxxxxxx X. Xxxxxx, FSA, MAAA
Assistant Vice President Vice President and Actuary
Individual Life Product
Management
Date: 12/21/04 Date: 12/21/04
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SCHEDULE A
PLANS COVERED UNDER THIS AGREEMENT
TYPE OF BUSINESS Fully underwritten Last Survivor Plans Single Life Term
under the "Xxxxx" Program described in Exhibit IV
PLANS OF INSURANCE GENERAL FORM NO'S.
------------------------------------------------------------------------------------------------------
Last Survivor Universal Life HL-14393, HL-A14407,1LA-1011
Last Survivor Variable Life HL-14623, XXX-1020
Last Survivor Variable Life II LA-1151(98), HL-15441(98)(NY)
Last Survivor SPVL HL-LSPVL97, XXX-LSPVL97
RIDERS
------------------------------------------------------------------------------------------------------
Four Year Term Xxxxx XX-12933, HL-A12989, XXX-1080
Estate Protection Xxxxx XX-14627, XXX-1023
Twenty-four Month Exchange Xxxxx XX-12963, XXX-1013
Single Life YRT Life Insurance Xxxxx XX-14626, XXX-1021, LA-1150(98)
Guaranteed COI Benefit Rider LA-1174(00)
Last Survivor Term Xxxxx XX-14394
Estate Tax Repeal Rider LA-1194(02), HL-15842(02), HL-15843(02)
Last Survivor Exchange Option Rider (24) LA-10022, LA-1013, HL-14395, HL-14624
Estate Tax Repeal Benefit Rider LA-1168(00), LA-1166(00), HL-11503(00)
Mortality and Expense Risk Rates Rider LA-1198(02), HL-1584(02)
DESCRIPTIONS
RIDERS WHERE ADDITIONAL PREMIUM IS DUE TO THE REINSURER:
Four Year Term Rider: This rider will pay the term insurance benefit upon
receipt of due proof of the Last Surviving Insured's death while the policy and
this rider are in force.
Estate Protection Rider: This rider will pay the term insurance benefit upon
receipt of due proof of the Last Surviving Insured's death while the policy and
this rider are in force.
Single Life YRT Life Insurance Rider: This rider will provide additional term
insurance coverage on the life of the named Insured.
Last Survivor Term Rider: This rider provides supplemental last survivor term
insurance coverage on the base insureds.
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SCHEDULE A
PLANS COVERED UNDER THIS AGREEMENT
RIDERS THAT ALTER THE POLICY AND IN WHICH NO ADDITIONAL PREMIUM IS PAID TO THE
REINSURER. IF A POLICY HAS THIS RIDER IT IS STILL COVERED UNDER THE AGREEMENT:
Twenty-four Month Exchange Rider: This rider allows the last survivor policy to
be exchanged for two individual policies on the life of each of the Insureds,
subject to the conditions stated in this rider. For example, this rider can be
used in case of divorce.
Estate Tax Repeal Rider: The purpose of this rider is to allow a policy to
surrender without surrender charges if the Federal Estate Tax is not in effect
in 2011. If a reinsured policy has this rider, the policy is still covered under
this Agreement, and there is no additional premium paid to the Reinsurer
specifically for the Estate Tax Rider.
Guaranteed COI Benefit Rider: This rider provides guaranteed cost of insurance
rates for the first 10 policy years. On each policy anniversary, we declare a
cost of insurance rate for a single policy year. This policy year is the policy
year 9 years from the then current policy anniversary. Thus the rider provides
that on any policy anniversary, cost of insurance rates over the next 10 years
will not exceed those provided by the rider. This rider is currently available
in only a few states and on variable life policy forms where the face amount is
at least thirty million dollars.
Last Survivor Exchange Option Rider (24): This rider allows the last survivor
policy to be exchanged for two individual policies on the life of each of the
Insureds, subject to the conditions stated in this rider. For example, this
rider can be used in case of divorce.
Estate Tax Repeal Benefit Rider: This rider will pay the account value less
indebtedness if the Federal Estate Tax Law is fully repealed by December 31,
2010 and we receive a request for this benefit amount from the insured.
Mortality and Expense Risk Rider: This rider guarantees that the mortality and
expense risk rate will be zero for years greater than and equal to 21.
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SCHEDULE B
BASIS OF REINSURANCE
REINSURANCE POOL SHARE: [Redacted]
LEAD REINSURER: [Redacted]
AUTOMATIC REINSURANCE
The Ceding Company will retain its available retention on each risk as
referenced in Exhibits II and Ill. The Reinsurance Pool Share of the remainder
will be ceded to the Reinsurer for reinsurance.
FACULTATIVE REINSURANCE
The Reinsurer will accept X% (as determined at issue) of the risk.
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NET AMOUNT AT RISK DEFINITION: [Redacted]
MINIMUM FACULTATIVE REINSURANCE CESSION: [Redacted]
FACULTATIVE OBLIGATORY:
The Reinsurer shall provide the following Facultative Obligatory capacity:
[Redacted]
EXHIBIT I
REINSURANCE PREMIUM CALCULATION
1. REINSURANCE PREMIUM
ANNUAL YRT REINSURANCE PREMIUM [Redacted]
2. PREMIUM TAX
Premium tax will not be reimbursed.
3. RIDERS
Term riders and other riders providing additional or increasing coverage will
use the same methods and YRT rates as the base plan. For single life additional
coverage riders the Reinsurance Premium calculation will be as described in
paragraphs one and three of Reinsurance Premium above.
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EXHIBIT II
RETENTION, BINDING, AND ISSUE LIMITS
FOR LAST SURVIVOR TREATY
TOTAL POOL LIMITS
[Redacted]
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EXHIBIT IV
XXXXX PROGRAM
With this program, two single life term policies may be issued in anticipation
of conversion to a last survivor policy. Each term policy will be issued for
half the face amount of the anticipated last survivor policy. Conversion to a
last survivor policy will not be allowed beyond two years after the latter term
policy date.
When term policies under this "Xxxxx Program" that are issued after January 1,
2002 and during the time when this Last Survivor Excess YRT Pool is open to new
business are converted to a last survivor policy, that policy will be reinsured
as a new policy under the Last Survivor Excess YRT Pool effective January 1,
2002. The policy date of the last survivor policy will be the conversion date.
The contestable and suicide period will be measured from the issue date of the
term policies.
Both lives will be underwritten for the full amount of the last survivor policy
at the time of issue of the term policies. No uninsurable lives will be
accepted. There will be no Facultative Reinsurance. The reinsurance rates on the
last survivor policy will be the currently effective rates for the Last Survivor
Excess YRT Pool and will be attained age, beginning with the first duration,
based on the ages at issue of the last survivor policy.
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EXHIBIT V
DIRECTOR'S CHARITABLE AWARD PROGRAM (DCAP)
The AYCO Services Agency, L.P. is a national financial planning firm. Their
Director's Charitable Award Program allows a corporation to fund substantial
charitable contributions on behalf of its board members through the purchase of
life insurance.
The Ceding Company has a special last survivor underwriting program for DCAP, as
follows:
- Guaranteed-to-Issue
- Pairings of directors into last survivor policies:
- The initial pairings are at application and are generally by
similar age.
- An odd number of lives are usually handled by pairing three lives
(A, B, and C) into three last survivor contracts (AB, BC, and CA),
with each of the three contracts for half the desired last survivor
face amount.
- After underwriting, the Ceding Company reserves the right to
re-pair the lives such that two unhealthy directors are not paired
on one policy.
- Pairings might also be restructured to achieve a desired premium.
- More coverage may be purchased on healthy lives to achieve a
desired premium.
- The Ceding Company reserves the right to approve all pairings.
- Less invasive underwriting requirements:
- No inspection reports (a short biography on each Director from the
company's personnel department may be requested).
- The Ceding Company may accept a copy of a recent (within 12
months), comprehensive physical in lieu of a paramedical or medical
exam.
- APS's are ordered by AYCO.
- The Ceding Company reserves the right to order additional tests or
examinations if necessary to properly assess the risk.
- The DCAP program is totally non-voluntary and is for Directors
only.
- Treatment of declinable lives or deaths during the underwriting
process:
- If a Director is found to be declinable under the Ceding Company's
normal underwriting guidelines, or dies during the underwriting
process, he or she will be treated as an uninsurable and paired
with a healthy life in a last survivor contract.
- Special binding rules:
- Binding occurs at receipt of the census including pairings, the
applications, and the estimated annual premium for the last
survivor contracts.
- Binding amount is up to the applied-for last survivor policy face
amount.
- Binding is for last survivor policies (payment on second death,
pairings at the Ceding Company's discretion).
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EXHIBIT V
DIRECTOR'S CHARITABLE AWARD PROGRAM (DCAP)
- Addition of a Director after case inception:
- If more than one Director is being added, last survivor coverage will
be available as described above.
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EXHIBIT VI
Annual per 1000 Yearly Renewable Term reinsurance rates are attached.
These rates are used for both Automatic, Facultative Obligatory, and Facultative
policies for up to [Redacted] For amounts greater than [Redacted] on Facultative
policies, the Reinsurer will notify the Ceding Company at the time of offer if
the rates are other than automatic.
PRODUCTS USING MULTI-CLASS RATE TABLES:
LAST SURVIVOR VARIABLE LIFE [Redacted]
LAST SURVIVOR VARIABLE LIFE II [Redacted]
PRODUCTS USING UNI-CLASS RATE TABLES:
LAST SURVIVOR UNIVERSAL LIFE [Redacted]
LAST SURVIVOR SPVL [Redacted]
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Exhibit VI
Single Life Reinsurance Rates for Last Survivor Pool Effective 1/01/2002
Multiclass (preferred & standard, nicotine & nonnicotine) Products
Male Nonnicotine Preferred [Redacted]
1
AMENDMENT 1
EFFECTIVE DECEMBER 1, 2005
TO THE
AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM
REINSURANCE AGREEMENT
EFFECTIVE JANUARY 1, 2002
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
("CEDING COMPANY")
AND
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
("REINSURER")
RECITALS
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend or modify Exhibit II
and Exhibit III under the Agreement.
NOW, THEREFORE for good and valuable considerations, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
AMENDMENT
The parties hereby agree to amend or modify the Agreement, by amending Exhibit
II and Exhibit III to reflect the following changes in the Retention Limit, for
policies issued on or after the effective date of this amendment;
The parties agree to remove Exhibit II and Exhibit III, in their entirety and
replace them with the attached Exhibit II and Exhibit III, effective December 1,
2005.
Except as herein amended, all other terms and conditions of this Agreement shall
remain unchanged.
Last Survivor 01/01/2002 -- Amendment 1
Between HLAIC AND TOLIC
3188-11
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, hereby executed this Amendment in duplicate on the dates
indicated below, with an effective date of December 1, 2005.
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
By: /s/ Xxxxx Xxxxxxxxxx Attest: /s/ Xxxxxxxx Xxxxxxxx
------------------------------- --------------------------------
Name: Xxxxx Xxxxxxxxxx Name: Xxxxxxxx Xxxxxxxx
Title: Senior Vice President Title: 2nd Vice President
Date: December 6, 2005 Date: December 6, 2005
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxxxxxx X. Xxxxxx
------------------------------- --------------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxxxxxx X. Xxxxxx
Title: Assistant Vice President, IL Title: Assistant Vice President, IL
Prod Dev Product Development
Date: 10/28/2005 Date: 10/28/05
Last Survivor 01/01/2002 -- Amendment 1
Between HLAIC AND TOLIC
2
EXHIBIT II
RETENTION, BINDING, AND ISSUE LIMITS
FOR LAST SURVIVOR TREATY
TOTAL POOL LIMITS
EFFECTIVE DECEMBER 1, 2005
[Redacted]
Last Survivor 01/01/2002 -- Amendment 1
Between HLAIC AND TOLIC
3
AMENDMENT 2
EFFECTIVE MARCH 18, 2005
TO THE
AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM
REINSURANCE AGREEMENT
EFFECTIVE JANUARY 1, 2002
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
("CEDING COMPANY")
AND
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
("REINSURER")
RECITALS
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend or modify Article
II, Article III, Article V, Article IX, Article XIII, Article XXIII, Schedule B,
Exhibit I and Exhibit II under the Agreement, and add Exhibit VII, Underwriting
Guidelines, to the Agreement.
NOW, THEREFORE for good and valuable considerations, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
AMENDMENT
The parties hereby agree to amend or modify the Agreement, by amending Article
II, Section A to reflect the change in the Underwriting Guidelines, and adding
Exhibit VII, Underwriting Guidelines, for policies applied for on and after the
effective date of this amendment.
The parties agree to remove Article II, Section A, in its entirety and replace
it with the following, effective March 18, 2005.
A. REQUIREMENTS FOR AUTOMATIC REINSURANCE
FOR RISKS WHICH MEET THE REQUIREMENTS FOR AUTOMATIC REINSURANCE AS SET FORTH
BELOW, THE REINSURER WILL PARTICIPATE IN A REINSURANCE POOL WHEREBY THE
REINSURER WILL AUTOMATICALLY REINSURE A PORTION OF THE INSURANCE RISKS AS
Last Survivor Excess Pool -- Amendment 2
Between HLAIC and TOLIC
Effective 03/18/2005
3188-11 A2
1
INDICATED IN SCHEDULE B. THE REQUIREMENTS FOR AUTOMATIC REINSURANCE ARE AS
FOLLOWS:
1. EACH LIFE MUST BE A RESIDENT OF THE UNITED STATES OR CANADA AT THE TIME OF
APPLICATION.
2. ALL AMOUNTS REINSURED MUST BE FULLY UNDERWRITTEN ACCORDING TO CEDING
COMPANY'S UNDERWRITING GUIDELINES. THE CEDING COMPANY'S UNDERWRITING GUIDELINES
CONSIST OF THE FOLLOWING DOCUMENTS WHICH ARE ATTACHED IN EXHIBIT VII AND MADE
PART OF THIS
REINSURANCE AGREEMENT:
- UNDERWRITING GUIDELINES
- AGE AND AMOUNT REQUIREMENTS
- INTERNAL UNDERWRITING PHILOSOPHY
- EXCEPTION CRITERIA
ANY PROPOSED CHANGES TO THE UNDERWRITING GUIDELINES SHALL BE SUBMITTED TO
REINSURER FOR WRITTEN APPROVAL PRIOR TO IMPLEMENTATION. IF REINSURER DOES NOT
RESPOND WITHIN THIRTY (30) DAYS, IT SHALL BE PRESUMED THAT REINSURER IS
AGREEABLE TO SUCH MODIFICATION.
ANY RISK NOT UNDERWRITTEN ACCORDING TO THE UNDERWRITING GUIDELINES SHALL BE
EXCLUDED, UNLESS ANY OF THE FOLLOWING CONDITIONS (I), (II) OR (III) ARE
SATISFIED, WHERE:
(i) REINSURER HAS AGREED TO THE SPECIAL UNDERWRITING PROGRAM BY WRITTEN
AMENDMENT TO THE
REINSURANCE AGREEMENT.
(ii) THE SPECIAL UNDERWRITING PROGRAM IS CURRENTLY PART OF THE EXISTING
TREATY BEING AMENDED HEREIN.
(iii) CEDING COMPANY HAS FOLLOWED ITS UNDERWRITING GUIDELINES AND HAS
REINSURED AT TERMS ACCORDING TO THESE GUIDELINES.
3. ANY RISK OFFERED ON A FACULTATIVE BASIS OTHER THAN FOR SIZE BY THE CEDING
COMPANY TO THE REINSURER OR ANY OTHER COMPANY WILL NOT QUALIFY FOR AUTOMATIC
REINSURANCE UNDER THIS AGREEMENT FOR THE SAME RISK AND SAME LIFE.
4. THE MINIMUM ISSUE AGE WILL BE 18 AND THE MAXIMUM ISSUE AGE WILL BE 90.
Last Survivor Excess Pool -- Amendment 2
Between HLAIC and TOLIC
Effective 03/18/2005
3188-11 A2
2
The parties hereby agree to amend or modify the Agreement, by amending Article
III to add Section H regarding underwriting offers that fall outside of the
Underwriting Guidelines, for policies applied for on and after the effective
date of this amendment.
The parties agree to add Section H to Article III, effective March 18, 2005.
H. IF THE CEDING COMPANY WOULD LIKE TO MAKE AN UNDERWRITING OFFER THAT IS
OUTSIDE OF THE UNDERWRITING GUIDELINES, THE CEDING COMPANY MAY: 1) PAY THE
REINSURER THE APPROPRIATE PREMIUM FOR THE RISK IN ACCORDANCE WITH THE
UNDERWRITING GUIDELINES; 2) REQUEST THE REINSURER'S MUTUAL AGREEMENT OF THE
UNDERWRITING OFFER PRIOR TO ISSUANCE OF THE OFFER AND DOCUMENT THE FILE
ACCORDINGLY; OR 3) RETAIN [REDACTED] OF THE RISK.
The parties hereby agree to amend or modify the Agreement, by amending Article
V, Section B-6 to reflect the change in the Rate Guarantee language, for
policies applied for on and after the effective date of this amendment.
The parties agree to remove Article V, Section B-6, in its entirety and replace
it with the following, effective March 18, 2005.
6. GUARANTEED RATES
ALTHOUGH THE REINSURER ANTICIPATES CONTINUING TO ACCEPT REINSURANCE PREMIUMS AT
THE CURRENT LEVEL, THE REINSURER RESERVES THE RIGHT TO INCREASE THE YRT
REINSURANCE RATES, AS DEFINED IN EXHIBIT III, BUT ONLY WHEN THE CEDING COMPANY
INCREASES THE COST OF INSURANCE RATES OR POLICY CHARGES TO THE POLICY OWNER. IF
THE REINSURER INCREASES ITS PREMIUM RATES OVER AND ABOVE THE PROPORTIONATE
INCREASE BY THE CEDING COMPANY TO THE POLICYOWNERS'S COST OF INSURANCE RATES OR
POLICY CHARGES, THE CEDING COMPANY RESERVES THE RIGHT TO RECAPTURE AFFECTED
BUSINESS WITH NO RECAPTURE FEE. THE INCREASE TO THESE REINSURANCE PREMIUMS SHALL
BE NO GREATER THAN THE 1980 COMMISSIONER'S STANDARD ORDINARY SMOKER/ NON-SMOKER
SEX DISTINCT TABLE.
THE CEDING COMPANY WILL PROVIDE THE REINSURER WITH THIRTY (30) DAYS' ADVANCE
WRITTEN NOTICE OF ANY INCREASES IN THE COST OF INSURANCE RATES OR POLICY
CHARGES.
THE REINSURER WILL PROVIDE THE CEDING COMPANY WITH THIRTY (30) DAYS' ADVANCE
WRITTEN NOTICE OF ANY RATE INCREASE.
Last Survivor Excess Pool -- Amendment 2
Between HLAIC and TOLIC
Effective 03/18/2005
3188-11 A2
3
THE CEDING COMPANY AND THE REINSURER AGREE THAT THEY HAVE NEGOTIATED THE TERMS
OF THIS AGREEMENT ON THE ASSUMPTION THAT THE REINSURER WILL HOLD STATUTORY
RESERVES AS A RESULT OF THIS AGREEMENT AT THE RESERVE BASIS. IF ANY INSURANCE
REGULATORY AUTHORITY HAVING JURISDICTION OVER THE REINSURER REQUIRES THE
REINSURER TO ESTABLISH RESERVES FOR LIABILITIES ASSUMED UNDER THIS AGREEMENT IN
EXCESS OF THE RESERVE BASIS AS A RESULT OF THIS ARTICLE V, SECTION 6
("REQUIREMENT"); AND
1. SUCH ACTION RESULTS IN THE REINSURER BEING REQUIRED TO REPORT SUCH
EXCESS RESERVES IN THE STATUTORY STATEMENTS FILED WITH THE
REINSURER'S STATE OF DOMICILE; AND
2. THE REINSURER CAN DEMONSTRATE THE REQUIREMENT TO THE SATISFACTION OF
THE CEDING COMPANY;
THEN THE REINSURER SHALL PROVIDE PROMPT WRITTEN NOTICE OF THE REQUIREMENT TO THE
CEDING COMPANY UNDER THE PROVISIONS IN ARTICLE XXIII. THE REINSURER AGREES THAT
ADDITIONAL RESERVES THAT THE REINSURER HOLDS VOLUNTARILY OR THAT ARE DETERMINED
TO BE NECESSARY AS A RESULT OF ASSET ADEQUACY ANALYSIS SHALL NOT BE CONSIDERED
RESERVES IN EXCESS OF THE RESERVE BASIS.
THE CEDING COMPANY AND REINSURER AGREE THAT IF THE REINSURER PROVIDES WRITTEN
NOTICE OF THE REQUIREMENT TO THE CEDING COMPANY IN ACCORDANCE WITH THIS ARTICLE
V, EACH WILL NEGOTIATE, IN GOOD FAITH, MUTUALLY AGREEABLE REVISED TERMS UNDER
WHICH THE REINSURER COULD CONTINUE TO HOLD STATUTORY RESERVES WITH RESPECT TO
LIABILITIES ASSUMED BY THE REINSURER UNDER THIS AGREEMENT AT THE RESERVE BASIS
("REVISED TERMS").
The parties hereby agree to amend or modify the Agreement, by amending Article
IX, Section C to reflect the change in the recapture language due to the Ceding
Company's increase in retention, for policies applied for on and after the
effective date of this amendment.
The parties agree to remove Article IX, Section C, in its entirety and replace
it with the following, effective March 18, 2005.
C. IF THE CEDING COMPANY EXERCISES ITS OPTION TO RECAPTURE, THEN:
1. RECAPTURE SHALL APPLY ONLY TO THE EXCESS PORTION FOR ALL INDIVIDUAL LIFE
POLICY FORMS ELIGIBLE FOR RECAPTURE UNDER ALL TREATIES BETWEEN THE CEDING
COMPANY AND REINSURER. INDIVIDUAL LIFE SHALL BE THAT REPORTING SEGMENT, AS
DEFINED IN THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 10-K AND
FORM 10-Q FOR THE HARTFORD FINANCIAL SERVICES GROUP, INC., OR THAT REPORTING
SEGMENT'S SUCCESSOR.
2. THE CEDING COMPANY MUST REDUCE THE REINSURANCE ON EACH RISK ON WHICH THE
CEDING COMPANY RETAINED THE MAXIMUM RETENTION LIMIT FOR THE AGE AND MORTALITY
RATING THAT WAS IN EFFECT AT THE TIME THE REINSURANCE WAS CEDED TO THE
REINSURER.
3. NO RECAPTURE WILL BE MADE TO REINSURANCE ON A RISK IF (A) THE CEDING COMPANY
RETAINED A SPECIAL RETENTION LIMIT LESS THAN THE MAXIMUM RETENTION LIMIT FOR THE
AGE AND MORTALITY RATING IN EFFECT AT THE TIME THE REINSURANCE WAS CEDED TO THE
REINSURER, OR IF (B) THE CEDING COMPANY DID NOT RETAIN INSURANCE ON THE RISK.
Last Survivor Excess Pool -- Amendment 2
Between HLAIC and TOLIC
Effective 03/18/2005
3188-11 A2
4
4. THE CEDING COMPANY MUST INCREASE ITS TOTAL AMOUNT OF INSURANCE ON A RISK UP
TO THE NEW RETENTION LIMIT BY REDUCING THE REINSURANCE. IF A RISK IS SHARED BY
MORE THAN ONE REINSURER, THE REINSURER'S PERCENTAGE OF THE REDUCED REINSURANCE
WILL BE THE SAME AS THE INITIAL PERCENTAGE OF REINSURANCE ON THE RISK.
5. THE REDUCTION IN REINSURANCE WILL BECOME EFFECTIVE ON THE NEXT ANNUAL
PREMIUM ANNIVERSARY AFTER THE INDIVIDUAL POLICY HAS BEEN INFORCE FOR AT LEAST
FIFTEEN (15) YEARS.
6. IF MORE THAN ONE POLICY PER LIFE IS ELIGIBLE FOR RECAPTURE, THEN THE
ELIGIBLE POLICIES MAY BE RECAPTURED BEGINNING WITH THE POLICY WITH THE EARLIEST
ISSUE DATE AND CONTINUING IN CHRONOLOGICAL ORDER ACCORDING TO THE REMAINING
POLICIES' ISSUE DATES.
The parties hereby agree to amend or modify the Agreement, by amending Article
XIII, Section C-4 to reflect the change in the resolution process for Delinquent
Reinsurance Proceeds, for policies applied for on and after the effective date
of this amendment.
The parties agree to remove Article XIII, Section C-4 in its entirety and
replace it with the following, effective March 18, 2005.
4. RESOLUTION PROCESS FOR DELINQUENT REINSURANCE PROCEEDS
REINSURANCE PROCEEDS DUE THE CEDING COMPANY THAT: (A) ARE SIXTY (60) DAYS PAST
DUE, FOR REASONS OTHER THAN THOSE DUE TO AN UNINTENTIONAL OVERSIGHT, AS DEFINED
IN ARTICLE VII; AND (B) HAVE NOT BEEN DISPUTED BY THE REINSURER SHALL BE
CONSIDERED DELINQUENT ("DELINQUENT REINSURANCE PROCEEDS").
WITHIN FIFTEEN (15) DAYS AFTER THE REINSURER OR THE CEDING COMPANY PROVIDES TO
THE OTHER PARTY WRITTEN NOTICE, IN ACCORDANCE WITH ARTICLE XXIII, OF ITS INTENT
TO ACTIVATE THE TERMS OF THIS ARTICLE TO RESOLVE AN ISSUE RELATED TO,DELINQUENT
REINSURANCE PROCEEDS EACH PARTY WILL APPOINT A DESIGNATED COMPANY OFFICER TO
ATTEMPT TO RESOLVE THE ISSUE. THE OFFICERS WILL MEET AT A MUTUALLY AGREEABLE
LOCATION OR CONFER BY TELEPHONE WITHIN FIFTEEN (15) DAYS OF THE APPOINTMENT, AND
AS OFTEN AS NECESSARY THEREAFTER, IN ORDER TO GATHER AND FURNISH THE OTHER WITH
ALL APPROPRIATE AND RELEVANT INFORMATION CONCERNING THE ISSUE. THE OFFICERS WILL
DISCUSS THE ISSUE AND WILL NEGOTIATE IN UTMOST GOOD FAITH. DURING THE
NEGOTIATION PROCESS, ALL REASONABLE REQUESTS MADE BY ONE OFFICER TO THE OTHER
FOR INFORMATION WILL BE HONORED.
WITHIN FIFTEEN (15) DAYS OF THE OFFICERS' FIRST MEETING OR PHONE CONFERENCE, THE
REINSURER SHALL ADVANCE PAYMENT OF THE DELINQUENT REINSURANCE PROCEEDS, AS LONG
AS THE CEDING COMPANY IS CURRENT IN ITS PAYMENT OF PREMIUM IN ACCORDANCE WITH
ARTICLE V. IF THE OFFICERS CANNOT RESOLVE THE ISSUE ON ANY PORTION OF THE
DELINQUENT REINSURANCE PROCEEDS WITHIN FIFTEEN (15) DAYS OF THEIR FIRST MEETING
OR PHONE CONFERENCE, THEN THE REINSURER SHALL FULLY RETAIN ALL RIGHT TO
SUBSEQUENTLY DISPUTE COVERAGE UNDER THIS AGREEMENT FOR SUCH PORTION OF THE
DELINQUENT REINSURANCE PROCEEDS.
IF THE REINSURER DOES NOT ADVANCE PAYMENT OF THE DELINQUENT REINSURANCE PROCEEDS
AS INDICATED IN THE PARAGRAPH ABOVE, THE CEDING COMPANY SHALL OFFSET THE AMOUNT
OF THE DELINQUENT REINSURANCE PROCEEDS AGAINST ANY AMOUNT DUE THE REINSURER IN
ACCORDANCE WITH
Last Survivor Excess Pool -- Amendment 2
Between HLAIC and TOLIC
Effective 03/18/2005
3188-11 A2
5
ARTICLE XVIII. IF THERE IS INSUFFICIENT BALANCE FROM WHICH TO OFFSET THE
DELINQUENT REINSURANCE PROCEEDS, UPON SIXTY (60) DAYS WRITTEN NOTICE, IN
ACCORDANCE WITH ARTICLE XXIII, TO THE REINSURER THAT IT INTENDS TO RECAPTURE IN
ACCORDANCE WITH THE TERMS OF THIS PROVISION, THE CEDING COMPANY MAY RECAPTURE
THE BUSINESS CEDED UNDER THIS AGREEMENT UNLESS THE REINSURER PAYS THE DELINQUENT
REINSURANCE PROCEEDS PRIOR TO THE DATE OF RECAPTURE.
The parties hereby agree to amend or modify the Agreement, by amending Article
XXIII to reflect the change in the notice to the Reinsurer's General Counsel
from "General Counsel" to "General Counsel, Reinsurance Division."
The parties hereby agree to amend or modify the Agreement, for policies applied
for on and after the effective date of this amendment, by amending Schedule B to
reflect the following:
The parties hereby agree to amend or modify the Agreement, by amending Exhibit I
to reflect the change in the Annual YRT reinsurance rates, for policies applied
for on and after the effective date of this amendment.
The parties agree to remove Schedule B, Exhibit I and Exhibit II in their
entirety and replace them with the attached Schedule B, Exhibit I and Exhibit
II, effective March 18, 2005.
Except as herein amended, all other terms and conditions of this Agreement shall
remain unchanged.
Last Survivor Excess Pool -- Amendment 2
Between HLAIC and TOLIC
Effective 03/18/2005
3188-11 A2
6
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, hereby executed this Amendment in duplicate on the dates
indicated below, with an effective date of March 18, 2005.
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
By: /s/ [ILLEGIBLE] Attest: /s/ [ILLEGIBLE]
------------------------------- --------------------------------
Name: [ILLEGIBLE] Name:
Title: Vice President Title:
Date: 12/21/06 Date:
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxxxxx X. Xxxxxx
------------------------------- --------------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxxxxx X. Xxxxxx
Title: Vice President, Individual Life Title: Vice President & Actuary
Product
Date: 12/22/2006 Date: 12/22/06
Last Survivor Excess Pool -- Amendment 2
Between HLAIC and TOLIC
Effective 03/18/2005
3188-11 A2
7
SCHEDULE B
BASIS OF REINSURANCE
EFFECTIVE MARCH 18, 2005
REINSURANCE POOL SHARE: [Redacted]
LEAD REINSURER: [Redacted]
AUTOMATIC REINSURANCE
The Ceding Company will retain its available retention on each risk as
referenced in Exhibits II and III. The Reinsurance Pool Share of the remainder
will be ceded to the Reinsurer for reinsurance.
FACULTATIVE REINSURANCE
The Reinsurer will accept X% (as determined at issue) of the risk.
Last Survivor Excess Pool -- Amendment 2
Between HLAIC and TOLIC
Effective 03/18/2005
3188-11 A2
8
SCHEDULE B
BASIS OF REINSURANCE
EFFECTIVE MARCH 18, 2005
NET AMOUNT AT RISK DEFINITION:[Redacted]
CONDITIONAL RECEIPT POOL BINDING LIMIT:[Redacted]
MINIMUM FACULTATIVE REINSURANCE CESSION:[Redacted]
FACULTATIVE OBLIGATORY:
The Reinsurer shall provide the following Facultative Obligatory capacity:
[Redacted]
REPORTING MEDIA:
Electronic media, in a format mutually acceptable to both Reinsurer and Ceding
Company, will be provided by Ceding Company for reporting purposes. The
following information will be provided:
(Reporting Period/Ending Date)
Treaty Number W.P. Allowance
Reinsurance Method ADB Discount
Client Policy Number Rider Discount
Automatic/Facultative Indicator Termination Date
Joint Life Indicator Reinstatement Date
Name
Last Name SPECIAL PRODUCTS (required if applicable)
First Name If Joint, Type (i.e., last survivor, 1st to die)
Middle Initial Joint Insured Name
Date of Birth Joint Last Name
Issue Age Joint First Name
Gender Joint Middle Initial
State of Residency Joint Issue Age
Table Rating Term Additions Indicator
Smoker Indicator Accelerated Benefit Indicator
Preferred Risk Indicator Long Term Care Indicator
Issue Month/Day/Century/Year Purchase Options
Age Basis Dividends
Plan Type (i.e., perm, term, UL, End, Xxx.) Policy Fee
Face Amount Issued Cash Value
Original Amount Reinsured
Current Amount Reinsured ADDITIONAL DATA ITEMS (not required)
Life Standard Premium Par/NonPar Indicator
Flat Extra Premium Social Security number
Length of Flat Extra Premium Years From Issue to Conversion
W.P. Premium Reinsurance Premium Mode
ADB Premium Retention Amount
Rider Premium Cash Value
Life Standard Discount First Year/Renewal Indicator
Flat Extra Allowance
Ceding Company currently uses TAI for its reinsurance administration.
REPORTING FREQUENCY: Monthly
Last Survivor Excess Pool -- Amendment 2
Between HLAIC and TOLIC
Effective 03/18/2005
3188-11 A2
9
EXHIBIT I
REINSURANCE PREMIUM CALCULATION
EFFECTIVE MARCH 18, 2005
1. REINSURANCE PREMIUM
[Redacted]
ANNUAL YRT REINSURANCE PREMIUM
2. PREMIUM TAX
Premium tax will not be reimbursed.
3. FLAT EXTRA ALLOWANCES
The flat extra premium paid to the Reinsurer will be the annual flat extra rate
which the Ceding Company charges the insured less the allowances below times the
Reinsured Net Amount at Risk.
DURATION OF FLAT EXTRA FIRST YEAR RENEWAL YEARS
---------------------------------------------------------------------
Less than 5 years [Redacted] [Redacted]
5 years or more
4. RIDERS
Term riders and other riders providing additional or increasing coverage will
use the same methods and YRT rates as the base plan. For single life additional
coverage riders the Reinsurance Premium calculation will be as described in
paragraphs one and three of Reinsurance Premium above.
Last Survivor Excess Pool -- Amendment 2
Between HLAIC and TOLIC
Effective 03/18/2005
3188-11 A2
10
EXHIBIT II
RETENTION, BINDING, AND ISSUE LIMITS
FOR LAST SURVIVOR TREATY
TOTAL POOL LIMITS
EFFECTIVE MARCH 18, 2005
[Redacted]
Last Survivor Excess Pool -- Amendment 2
Between HLAIC and TOLIC
Effective 03/18/2005
3188-11 A2
11
EXHIBIT VII
UNDERWRITING GUIDELINES
EFFECTIVE MARCH 18, 2005
[Redacted]
AMENDMENT 3
EFFECTIVE JUNE 23, 2006
TO THE
AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE JANUARY 1, 2002
("AGREEMENT")
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
("CEDING COMPANY")
AND
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
("REINSURER")
RECITALS
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend or modify the
Agreement to reflect the addition of the Hartford Variable Universal Life Last
Survivor product for policies issued on or after June 23, 2006.
NOW, THEREFORE for good and valuable considerations, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
AMENDMENT
I. Schedule A is deleted in its entirety and replaced with the attached
Schedule A.
II. Exhibit VI is deleted in its entirety and replaced with the attached
Exhibit VI.
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
Last Survivor Excess Treaty -- Effective 01/01/2002
Between HLAIC and TOLIC
Amendment #3 -- Effective 06/23/2006
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, hereby executed this Amendment in duplicate on the dates
indicated below, with an effective date of June 23, 2006.
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
By: /s/ Xxxxx Xxxxxxxxxx Attest: /s/ Xxxxxxxx X. Xxxxxxxx
------------------------------ ------------------------------
Name: Xxxxx Xxxxxxxxxx Name: Xxxxxxxx X. Xxxxxxxx
Title: Executive Vice President Title: Vice President
Date: 14 Dec 2006 Date: 26 December 2006
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxxxxx X. Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxxxxx X. Xxxxxx
Title: Vice President, IL Product Title: Vice President & Actuary
Date: 12/08/2006 Date: 12/08/2006
Last Survivor Excess Treaty -- Effective 01/01/2002
Between HLAIC and TOLIC
Amendment #3 -- Effective 06/23/2006
2
SCHEDULE A
PLANS COVERED UNDER THIS AGREEMENT
EFFECTIVE 06/23/2006
TYPE OF BUSINESS Fully underwritten Last Survivor Plans
Single Life Term under the "Xxxxx" Program described
in Exhibit IV
PLANS OF INSURANCE GENERAL FORM NO'S.
------------------------------------------------------------------------------------------------------
Last Survivor Universal Life HL-14393, HL-A14407, XXX-1011
Last Survivor Variable Life HL-14623, XXX-1020
Last Survivor Variable Life II LA-1151(98), HL-15441(98)(NY)
Last Survivor SPVL HL-LSPVL97, XXX-LSPVL97
Hartford Variable Universal Life Last Survivor LA-1287(06), HL-19217(06)(NY)
RIDERS
------------------------------------------------------------------------------------------------------
Four Year Term Xxxxx XX-12933, HL-A12989, XXX-1080
Estate Protection Xxxxx XX-14627, XXX-1023
Twenty-four Month Exchange Xxxxx XX-12963, XXX-1013
Single Life YRT Life Insurance Xxxxx XX-14626, XXX-1021, LA-1150(98)
Guaranteed COI Benefit Rider LA-1174(00)
Last Survivor Term Xxxxx XX-14394
Estate Tax Repeal Rider LA-1194(02), HL-15842(02), HL-15843(02)
Last Survivor Exchange Option Rider (24) LA-10022, LA-1013, HL-14395, HL-14624
Estate Tax Repeal Benefit Rider LA-1168(00), LA-1166(00), HL-11503(00)
Mortality and Expense Risk Rates Rider LA-1198(02), HL-1584(02)
DESCRIPTIONS
RIDERS WHERE ADDITIONAL PREMIUM IS DUE TO THE REINSURER:
Four Year Term Rider: This rider will pay the term insurance benefit upon
receipt of due proof of the Last Surviving Insured's death while the policy and
this rider are in force.
Estate Protection Rider: This rider will pay the term insurance benefit upon
receipt of due proof of the Last Surviving Insured's death while the policy and
this rider are in force.
Single Life YRT Life Insurance Rider: This rider will provide additional term
insurance coverage on the life of the named Insured.
Last Survivor Term Rider: This rider provides supplemental last survivor term
insurance coverage on the base insureds.
Last Survivor Excess Treaty -- Effective 01/01/2002
Between HLAIC and TOLIC
Amendment #3 -- Effective 06/23/2006
3
SCHEDULE A
PLANS COVERED UNDER THIS AGREEMENT
EFFECTIVE 06/23/2006
RIDERS THAT ALTER THE POLICY AND IN WHICH NO ADDITIONAL PREMIUM IS PAID TO THE
REINSURER. IF A POLICY HAS THIS RIDER IT IS STILL COVERED UNDER THE AGREEMENT:
Twenty-four Month Exchange Rider: This rider allows the last survivor policy to
be exchanged for two individual policies on the life of each of the Insureds,
subject to the conditions stated in this rider. For example, this rider can be
used in case of divorce.
Estate Tax Repeal Rider: The purpose of this rider is to allow a policy to
surrender without surrender charges if the Federal Estate Tax is not in effect
in 2011. If a reinsured policy has this rider, the policy is still covered under
this Agreement, and there is no additional premium paid to the Reinsurer
specifically for the Estate Tax Rider.
Guaranteed COI Benefit Rider: This rider provides guaranteed cost of insurance
rates for the first 10 policy years. On each policy anniversary, we declare a
cost of insurance rate for a single policy year. This policy year is the policy
year 9 years from the then current policy anniversary. Thus the rider provides
that on any policy anniversary, cost of insurance rates over the next 10 years
will not exceed those provided by the rider. This rider is currently available
in only a few states and on variable life policy forms where the face amount is
at least thirty million dollars.
Last Survivor Exchange Option Rider (24): This rider allows the last survivor
policy to be exchanged for two individual policies on the life of each of the
Insureds, subject to the conditions stated in this rider. For example, this
rider can be used in case of divorce.
Estate Tax Repeal Benefit Rider: This rider will pay the account value less
indebtedness if the Federal Estate Tax Law is fully repealed by December 31,
2010 and we receive a request for this benefit amount from the insured.
Mortality and Expense Risk Rider: This rider guarantees that the mortality and
expense risk rate will be zero for years greater than and equal to 21.
Last Survivor Excess Treaty -- Effective 01/01/2002
Between HLAIC and TOLIC
Amendment #3 -- Effective 06/23/2006
4
EXHIBIT VI
EFFECTIVE 06/23/2006
Annual per 1000 Yearly Renewable Term reinsurance rates are attached.
These rates are used for both Automatic, Facultative Obligatory, and Facultative
policies for up to [Redacted]. For amounts greater than [Redacted] on
Facultative policies, the Reinsurer will notify the Ceding Company at the time
of offer if the rates are other than automatic.
PRODUCTS USING MULTI-CLASS RATE TABLES:
Last Survivor Variable Life [Redacted]
Last Survivor Variable Life II [Redacted]
Hartford Variable Universal Life Last Survivor [Redacted]
PRODUCTS USING UNI-CLASS RATE TABLES:
Last Survivor Universal Life [Redacted]
Last Survivor SPVL [Redacted]
Last Survivor Excess Treaty -- Effective 01/01/2002
Between HLAIC and TOLIC
Amendment #3 -- Effective 06/23/2006
5
EXHIBIT VI
SINGLE LIFE REINSURANCE RATES FOR LAST SURVIVOR POOL EFFECTIVE 1/01/2002
MULTICLASS (PREFERRED & STANDARD, NICOTINE & NONNICOTINE PRODUCTS
[Redacted]
1
AMENDMENT 4
EFFECTIVE JANUARY 18, 2005
TO THE
REINSURANCE AGREEMENT
EFFECTIVE DATE: DECEMBER 1, 2002
BETWEEN
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
HARTFORD LIFE INSURANCE COMPANY
AND
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
("CEDING COMPANY")
AND
SECURITY LIFE OF DENVER INSURANCE COMPANY
("REINSURER")
RECITALS
WHEREAS, Xxxxxxxxx currently reinsures Ceding Company's plans or policies under
the Agreement; and
WHEREAS, Ceding Company and Reinsurer wish to amend or modify the Agreement.
AMENDMENT
The parties hereby agree that the Ceding Company will no longer cede and the
Reinsurer will no longer accept reinsurance under this Agreement for policies
applied for on or after January 18, 2005. Reinsurance that is now in force under
this Agreement will continue to be governed by the terms and conditions of the
Agreement until the termination or expiration of all such reinsurance.
Except as herein amended, all other terms and conditions of this Agreement shall
remain unchanged.
SL Enh. Std. Reinsurance Agreement -- Amendment 4
Between HLA, HLIC, HLAIC and Security Life of Denver
Effective Date: December 1, 2002
1
In witness of the foregoing, Ceding Company and Reinsurer have, by their
respective officers, hereby executed this Amendment in duplicate on the dates
indicated below, with an effective date of January 18, 2005.
SECURITY LIFE OF DENVER INSURANCE COMPANY
Scottish Re (U.S.), Inc. By Power of
Attorney
By: /s/ Xxx Xxxx Attest: /s/ Xxxxx Xxxxxx
-------------------------------- --------------------------------
Name: Xxx Xxxx Name: Xxxxx Xxxxxx
Title: President, Individual Title: Senior Vice President, Treasurer
Reinsurance Head of Denver Business
Date: 8/15/05 Date: 8-17-05
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
HARTFORD LIFE INSURANCE COMPANY AND
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ [ILLEGIBLE] Attest: /s/ Xxxx Xxxxxx
-------------------------------- --------------------------------
Name: [ILLEGIBLE] Name: Xxxx Xxxxxx
Title: Assistant Vice President, IL Title: Vice President, IL Prod Dev
Prod Dev
Date: 8/29/2005 Date: 8/29/2005
SL Enh. Std. Reinsurance Agreement -- Amendment 4
Between HLA, HLIC, HLAIC and Security Life of Denver
Effective Date: December 1, 2002
2
AMENDMENT 5
EFFECTIVE FEBRUARY 11, 2008
TO THE
AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE JANUARY 1, 2002
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
TRANSAMERICA LIFE INSURANCE COMPANY
(FORMERLY TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY) ("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
revise the maximum issue age to 85; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
provide that certain specified replacement business shall not be counted toward
the Jumbo Limit; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
increase the Automatic Binding, Automatic Issue and Automatic Processing Limits
under the Retention Limit II in Exhibit II, originally described in Amendment 4.
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree to amend the
Agreement as follows:
- Article II, Section A, Paragraph 4, is deleted in its entirety and
replaced with the following:
4. The minimum issue age will be 18 and the maximum issue age will be
85.
- Article II, Section A, Paragraph 7, is deleted in its entirety and
replaced with the following:
[Redacted]
Last Survivor Treaty -- Effective 1/01/2002
Between HLAIC and TLIC (TOLIC)
Amendment 5 -- Effective 02/11/2008
1
- Exhibit II is deleted in its entirety and replaced with the attached
revised Exhibit II.
- Exhibit III is deleted in its entirety and replaced with the attached
revised Exhibit III.
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
Last Survivor Treaty -- Effective 1/01/2002
Between HLAIC and TLIC (TOLIC)
Amendment 5 -- Effective 02/11/2008
2
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of February 11, 2008.
TRANSAMERICA LIFE INSURANCE COMPANY
By: /s/ Xxxxx X. Xxxxxxxxxx Attest: /s/ Xxxxx X. Xxxxxxxxx
----------------------------- -----------------------------
Name: Xxxxx X. Xxxxxxxxxx Name: Xxxxx X. Xxxxxxxxx
Title: Senior Vice President Title: Second Vice President
Date: Oct. 27, 2009 Date: October 29, 2009
HARTFORD LIFE AND ANNUITY INSURANCE
COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxx Xxxxxx
----------------------------- -----------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxx Xxxxxx, FSA, MAAA
Title: Vice President, Individual Title: Senior Vice President IMG
Life Product Product Management
Date: 11/2/2009 Date: 11/3/2009
Last Survivor Treaty -- Effective 1/01/2002
Between HLAIC and TLIC (TOLIC)
Amendment 5 -- Effective 02/11/2008
3
EXHIBIT II
RETENTION, BINDING, AND ISSUE LIMITS FOR LAST SURVIVOR TREATY
TOTAL POOL LIMITS
EFFECTIVE FEBRUARY 11, 2008
Retention Limit I ("RL I") Retention Limit II ("XX XX")
Automatic Binding Limit (excludes Automatic Binding Limit (excludes
retention) retention)
Automatic Issue Limit with RL I Automatic Issue Limit with XX XX
Automatic Processing Limit with RL I Automatic Processing Limit with XX
XX
Facultative Obligatory Auto Binding Facultative Obligatory Auto Binding
Limit Limit
(excludes retention) (excludes retention)
Facultative Obligatory Auto Issue Facultative Obligatory Auto Issue
Limit with RL I Limit with XX XX
Jumbo Limit Jumbo Limit
Last Survivor Treaty -- Effective 1/01/2002
Between HLAIC and TLIC (TOLIC)
Amendment 5 -- Effective 02/11/2008
4
EXHIBIT II
RETENTION, BINDING, AND ISSUE LIMITS FOR LAST SURVIVOR TREATY
TOTAL POOL LIMITS
EFFECTIVE FEBRUARY 11, 2008
[Redacted]
Last Survivor Treaty -- Effective 1/01/2002
Between HLAIC and TLIC (TOLIC)
Amendment 5 -- Effective 02/11/2008
5
EXHIBIT III
EFFECTIVE FEBRUARY 11, 2008
LAST SURVIVOR LIMITS AND RETENTION WORKSHEET
[Redacted]
Last Survivor Treaty -- Effective 1/01/2002
Between HLAIC and TLIC (TOLIC)
Amendment 5 -- Effective 02/11/2008
6
EXHIBIT III
EFFECTIVE FEBRUARY 11, 2008
[Redacted]
Last Survivor Treaty -- Effective 1/01/2002
Between HLAIC and TLIC (TOLIC)
Amendment 5 -- Effective 02/11/2008
7
AMENDMENT 6
EFFECTIVE MAY 1, 2008
TO THE
AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE JANUARY 1, 2002
("AGREEMENT")
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY ("REINSURER")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
reflect the addition of the Hartford Leaders VUL Joint Legacy product, for
policies issued on or after the effective date of this Amendment.
NOW, THEREFORE FOR GOOD AND VALUABLE CONSIDERATION, RECEIPT OF WHICH IS XXXXXX
ACKNOWLEDGED, THE CEDING COMPANY AND THE REINSURER XXXXXX AGREE TO AMEND THE
AGREEMENT AS FOLLOWS:
I. Schedule A is deleted in its entirety and replaced with the attached revised
Schedule A; and
II. The first page of Exhibit VI is deleted in its entirety and replaced with
the attached revised first page of Exhibit VI.
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
LS Excess Treaty -- Effective 1/01/2002
Between HLAIC and TOLIC
Amendment #6 -- Effective 5/01/2008
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of May 1, 2008.
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
By: /s/ [ILLEGIBLE] Attest: /s/ Xxxxx Xxxxxx Xxxxxxxxx
-------------------------------- -------------------------------
Name: [ILLEGIBLE] Name: Xxxxx Xxxxxx Xxxxxxxxx
Title: [ILLEGIBLE] Title: 2nd Vice President
Date: 8-18-08 Date: August 20, 2008
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxxxxx X. Xxxxxx
-------------------------------- -------------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxxxxx X. Xxxxxx
Title: Vice President, Individual Life Title: Senior Vice President
Product
Date: 9/15/2008 Date: 9/15/2008
LS Excess Treaty -- Effective 1/01/2002
Between HLAIC and TOLIC
Amendment #6 -- Effective 5/01/2008
2
SCHEDULE A
PLANS COVERED UNDER THIS AGREEMENT
EFFECTIVE MAY 1, 2008
TYPE OF BUSINESS Fully underwritten Last Survivor Plans
Single Life Term under the "Xxxxx" Program described
in Exhibit IV
PLANS OF INSURANCE GENERAL FORM NO'S.
------------------------------------------------------------------------------------------------------
Last Survivor Universal Life HL-14393, HL-A14407,XXX-1011
Last Survivor Variable Life HL-14623, XXX-1020
Last Survivor Variable Life II LA-1151(98), HL-15441(98)(NY)
Last Survivor SPVL HL-LSPVL97, XXX-LSPVL97
Hartford Variable Universal Life Last Survivor LA-1287(06), HL-19217(06)(NY)
Hartford Leaders VUL Joint Legacy LA-1287(06), HL-19217(06)(NY)
RIDERS
------------------------------------------------------------------------------------------------------
Four Year Term Xxxxx XX-12933, HL-Al2989, XXX-1080
Estate Protection Xxxxx XX-14627, XXX-1023
Twenty-four Month Exchange Xxxxx XX-12963, XXX-1013
Single Life YRT Life Insurance Xxxxx XX-14626, XXX-1021, LA-1150(98)
Guaranteed COI Benefit Rider LA-1174(00)
Last Survivor Term Xxxxx XX-14394
Estate Tax Repeal Rider LA-1194(02), HL-15842(02), HL-15843(02)
Last Survivor Exchange Option Rider (24) LA-10022, LA-1013, HL-14395, HL-14624
Estate Tax Repeal Benefit Rider LA-1168(00), LA-1166(00), HL-11503(00)
Mortality and Expense Risk Rates Rider LA-1198(02), HL-1584(02)
DESCRIPTIONS
RIDERS WHERE ADDITIONAL PREMIUM IS DUE TO THE REINSURER:
Four Year Term Rider: This rider will pay the term insurance benefit upon
receipt of due proof of the Last Surviving Insured's death while the policy and
this rider are in force.
Estate Protection Rider: This rider will pay the term insurance benefit upon
receipt of due proof of the Last Surviving Insured's death while the policy and
this rider are in force.
Single Life YRT Life Insurance Rider: This rider will provide additional term
insurance coverage on the life of the named Insured.
Last Survivor Term Rider: This rider provides supplemental last survivor term
insurance coverage on the base insureds.
LS Excess Treaty -- Effective 1/01/2002
Between HLAIC and TOLIC
Amendment #6 -- Effective 5/01/2008
3
SCHEDULE A
PLANS COVERED UNDER THIS AGREEMENT
EFFECTIVE MAY 1, 2008
RIDERS THAT ALTER THE POLICY AND IN WHICH NO ADDITIONAL PREMIUM IS PAID TO THE
REINSURER. IF A POLICY HAS THIS RIDER IT IS STILL COVERED UNDER THE AGREEMENT:
Twenty-four Month Exchange Rider: This rider allows the last survivor policy to
be exchanged for two individual policies on the life of each of the Insureds,
subject to the conditions stated in this rider. For example, this rider can be
used in case of divorce.
Estate Tax Repeal Rider: The purpose of this rider is to allow a policy to
surrender without surrender charges if the Federal Estate Tax is not in effect
in 2011. If a reinsured policy has this rider, the policy is still covered under
this Agreement, and there is no additional premium paid to the Reinsurer
specifically for the Estate Tax Rider.
Guaranteed COI Benefit Rider: This rider provides guaranteed cost of insurance
rates for the first 10 policy years. On each policy anniversary, we declare a
cost of insurance rate for a single policy year. This policy year is the policy
year 9 years from the then current policy anniversary. Thus the rider provides
that on any policy anniversary, cost of insurance rates over the next 10 years
will not exceed those provided by the rider. This rider is currently available
in only a few states and on variable life policy forms where the face amount is
at least thirty million dollars.
Last Survivor Exchange Option Rider (24): This rider allows the last survivor
policy to be exchanged for two individual policies on the life of each of the
Insureds, subject to the conditions stated in this rider. For example, this
rider can be used in case of divorce.
Estate Tax Repeal Benefit Rider: This rider will pay the account value less
indebtedness if the Federal Estate Tax Law is fully repealed by December 31,
2010 and we receive a request for this benefit amount from the insured.
Mortality and Expense Risk Rider: This rider guarantees that the mortality and
expense risk rate will be zero for years greater than and equal to 21.
LS Excess Treaty -- Effective 1/01/2002
Between HLAIC and TOLIC
Amendment #6 -- Effective 5/01/2008
4
EXHIBIT VI
EFFECTIVE MAY 1, 2008
Annual per 1000 Yearly Renewable Term reinsurance rates are attached.
These rates are used for Automatic, Facultative Obligatory, and Facultative
policies for up to [Redacted] Reinsured Net Amount at Risk. For amounts greater
than [Redacted] on Facultative policies, the Reinsurer will notify the Ceding
Company, at the time of offer, if the rates are other than automatic.
PRODUCTS USING MULTI-CLASS RATE TABLES:
Last Survivor Variable Life [Redacted]
Last Survivor Variable Life II [Redacted]
Hartford Variable Universal Life Last Survivor [Redacted]
Hartford Leaders VUL Joint Legacy [Redacted]
PRODUCTS USING UNI-CLASS RATE TABLES:
Last Survivor Universal Life [Redacted]
Last Survivor SPVL [Redacted]
LS Excess Treaty -- Effective 1/01/2002
Between HLAIC and TOLIC
Amendment #6 -- Effective 5/01/2008
5
AMENDMENT 9
EFFECTIVE JUNE 1, 2005
TO THE
AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE JANUARY 1, 2002
("AGREEMENT")
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
("CEDING COMPANY")
AND
TRANSAMERICA LIFE INSURANCE COMPANY
(FORMERLY TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY)
("REINSURER")
RECITALS
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement, to
document the Ceding Company's ability to offer coverage at a risk class more
favorable than the True Assessed Risk Class, for policies issued on or after
June 1, 2005.
NOW, THEREFORE for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
1. The above recitals are true and accurate and are incorporated herein.
2. Article II, Section A, Paragraph 2 is deleted in its entirety and replaced
with the following:
2. The risk must be underwritten according to the Ceding Company's
standard underwriting practices and guidelines or the Ceding Company's
enhanced standard underwriting program.
If the Ceding Company would like to offer coverage at a risk class more
favorable than the True Assessed Risk Class, the Ceding Company may:
a. Reinsure the risk automatically under this Agreement with the
Reinsurance Premium based on the True Assessed Risk Class; or
LS Excess Treaty -- Effective 1/01/2002
Between HLAIC and TLIC
Amendment #9 -- Effective 6/01/2005
1
b. Seek to reinsure the risk facultatively under this Agreement at
rates more favorable than the True Assessed Risk Class; or
c. Decide not to reinsure the risk under this Agreement
For the purposes of this Agreement, "True Assessed Risk Class" shall mean the
risk class determined by the Ceding Company prior to any adjustments made as a
result of the Ceding Company's enhanced standard underwriting program.
The Ceding Company's Underwriting Guidelines consist of the following documents
which are attached in Exhibit VII and made part of this reinsurance agreement:
- Underwriting guidelines
- Age and amount requirements
- Internal Underwriting Philosophy
- Exception criteria
Any proposed changes to the Ceding Company's Underwriting Guidelines shall be
submitted to the Reinsurer for written approval prior to implementation. If the
Reinsurer does not respond within thirty (30) days, it shall be presumed that
the Reinsurer is agreeable to such modification.
Any risk not underwritten according to the Underwriting Guidelines shall be
excluded, unless any of the following conditions (i), (ii) or (iii) are
satisfied, where:
(i) Xxxxxxxxx has agreed to the special underwriting program by written
amendment to the reinsurance agreement.
(ii) the special underwriting program is currently part of the existing
treaty being amended herein.
(iii) Ceding Company has followed its Underwriting Guidelines and has
reinsured at terms according to these guidelines.
3. Except as herein amended, all other terms and conditions of the Agreement
shall remain unchanged.
L.S Excess Treaty -- Effective 1/01/2002
Between HLAIC and TLIC
Amendment #9 -- Effective 6/01/2005
2
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, hereby executed this Amendment in duplicate on the dates
indicated below, with an effective date of June 1, 2005.
TRANSAMERICA LIFE INSURANCE COMPANY
By: /s/ Xxxxx Xxxxxxxxxx Attest: /s/ Xxxxx Xxxxxxxxx
------------------------------- -------------------------------
Name: Xxxxx Xxxxxxxxxx Name: Xxxxx Xxxxxxxxx
Title: Senior Vice President Title: 2nd Vice President
Date: July 12, 2011 Date: 7.12.11
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxx Xxxxxxx Attest: /s/ Xxxxxxx X Xxxxxx
------------------------------- -------------------------------
Name: Xxxx Xxxxxxx Name: Xxxxxxx X Xxxxxx
Title: Assistant Vice President & Title: Senior Vice President & Actuary
Actuary
Date: 7-15-2011 Date: 7/15/2011
LS Excess Treaty -- Effective 1/01/2002
Between HLAIC and TLIC
Amendment #9 -- Effective 6/01/2005
3
