Exhibit 10(a)
Exhibit 10(a)
WHEREAS, the
undersigned Protective Life Insurance Company (hereinafter referred to as the
“Guarantor”) has agreed to guarantee that American Foundation Life
Insurance Company (“American”) will pay all insurance policy claims
made by the holders or beneficiaries of American insurance policies (the
“Policyholders”) in accordance with the terms and conditions of said
policies.
NOW, THEREFORE,
in consideration of the premises, and in further consideration of the sum of ten
dollars to the Guarantor in hand paid on behalf of Policyholders and other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged by the Guarantor, the Guarantor unconditionally hereby guarantees
the due and punctual payment to the Policyholders when and as the same shall
become due and payable of the following (hereinafter collectively called the
“Liabilities”):
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All
obligations of American to the Policyholders arising under the terms and
conditions of any insurance policies issued by American from the date hereof
until the date this guaranty is terminated pursuant to the provisions hereof
(the “Policies”). It is specifically agreed and understood that this
guaranty shall in no way expand the Policyholders’ rights, but shall merely
guarantee the payment of all amounts otherwise due them pursuant to the terms of
the insurance policy they are claiming under.
The Guarantor
hereby further agrees that the obligations of the Guarantor hereunder are
unconditional, present and continuing guaranties of payment of the Liabilities
(said Liabilities are restricted by definition to only those payments actually
due Policyholders under the specific terms, conditions, restrictions and
exclusions of the particular insurance policies covered by this guaranty) and
shall not be discharged or impaired by (a) the insolvency, or bankruptcy of
American or (b) any default by American in payment of any of the Liabilities.
This agreement
has been executed and delivered, and is to be performed, in the State of
Alabama, and shall be governed by, and construed in accordance with, Alabama
law.
The Guarantor
further agrees that this agreement shall remain in full force and effect until
the earlier of (a) when American achieves a claims paying rating equal to or
better than Guarantor or (b) ninety (90) days after it is revoked or terminated
by a written instrument, signed by the Guarantor; provided, however, even after
any revocation or termination by such notice, this guaranty shall be and remain
effective as to any Policies then outstanding.
WITNESS the signature and seal of the undersigned on this 27th day of October, 1993.
PROTECTIVE LIFE INSURANCE
COMPANY
By: /S/XXXXX X. XXXXXXXX
Xxxxx Xxxxxxxx
Xx.Vice President and Chief Actuary
STATE OF Alabama
COUNTY OF Jefferson
I, the undersigned authority, a Notary Public in and for said County in said State, hereby
certify that Xxxxx X. Xxxxxxxx, whose name as Senior Vice President and Chief Actuary of Protective Life
Insurance Company, a Tennessee corporation, is signed to the foregoing instrument, and who is known to
me, acknowledged before me on this day that, being informed of the contents of said instrument, he, as
such officer and with full authority, executed the same voluntarily for and as the act of said
corporation.
Given under my hand and official seal, this the 27th day of October, 1993.
/S/Xxxxxxx X. Xxxxxx
Notary Public
AFFIX SEAL
My Commission expires: April 11, 1995
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