REINSURANCE AGREEMENT #6153-1
(EXCESS OF LOSS)
(referred to as the "Agreement")
between
FIRST ALLMERICA FINANCIAL LIFE INSURANCE COMPANY
(WORCESTER, MASSACHUSETTS)
(hereinafter referred to as the "Company")
and
LIFE REASSURANCE CORPORATION OF AMERICA
(STAMFORD, CONNECTICUT)
(hereinafter referred to as "Life Re")
EFFECTIVE: NOVEMBER 22, 1995
TABLE OF CONTENTS
PREAMBLE 1
ARTICLE I - METHOD OF REINSRUANCE AND INSURANCE 1
1. Effective Date 1
2. Method 1
3. Amounts 1
ARTICLE II - AUTOMATIC REINSURANCE 2
1. Insurance 2
2. Coverages 2
ARTICLE III - PROCEDURES FOR REPORTING 2
1. General Information 2
2. Self-Administered Reporting 2
ARTICLE IV - PREMIUMS 2
1. Life Insurance 2
2. Premium Taxes 2
3. Nonpayment of Reinsurance Premiums 2
4. Interest on Delinquent Payments 3
5. Misstatements 3
ARTICLE V - CLAIMS 4
1. Notice 4
2. Contested Claims 4
3. Expenses 4
4. Misstatements 4
5. Payment 5
ARTICLE VI - REDUCTIONS, REINSTATEMENTS & CHANGES 5
1. Reinstatements 5
2. Nonforfeiture Benefits 5
ARTICLE VII - DAC TAX 5
ARTICLE VIII - INSOLVENCY 6
ARTICLE IX - ARBITRATION 7
EXCESS OF LOSS
TABLE OF CONTENTS
PAGE 2
ARTICLE X - GENERAL PROVISIONS 8
1. Reinsurance Conditions 8
2. Errors and Omissions 8
3. Offset 8
4. Inspection 8
5. Entire Agreement 8
6. Amendment 9
7. Counterparts 9
8. No Assignment 9
9. Binding Effect 9
10. Notices 9
ARTICLE XI - DURATION OF AGREEMENT 10
ARTICLE XII - EXECUTION 11
SCHEDULE A X-0
Xxxxxxx 0 - Xxxxx X-0
Section 2 - Definitions and Interpretations A-2
Section 3 - Exclusions. A-2
Section 4 - Premium, Reports, and Remittances A-3
Section 5 - Commencement and Termination A-4
EXCESS OF LOSS
PREAMBLE
This
Reinsurance Agreement ("Agreement") is entered into by and between FIRST
ALLMERICA FINANCIAL LIFE INSURANCE COMPANY, a Massachusetts insurance
corporation (the "Company") and LIFE REASSURANCE CORPORATION OF AMERICA, a
Connecticut insurance corporation ("Life Re"). The Company and Life Re mutually
agree to reinsure on the terms and conditions set forth in this Agreement. This
Agreement is solely between the Company and Life Re, and performance of the
obligations of each party under this Agreement will be rendered solely to the
other party. In no instance will anyone other than the Company or Life Re have
any rights under this Agreement.
ARTICLE I - METHOD OF REINSURANCE AND INSURANCE
1. EFFECTIVE DATE
The reinsurance under this Agreement is effective as of November 22, 1995.
2. METHOD
Reinsurance of life insurance risks ("Life Insurance") under this Agreement
is for the amount at risk under the policy reinsured. The Company will cede and
Life Re will accept reinsurance under the policies or plans set forth in
Schedule A, assumed by the Company on citizens of the United States or Canada,
domiciled in the United States or Canada at the time of application. The
policies set forth in Schedule A that are reinsured under this Agreement are
hereinafter referred to collectively as "Reinsured Policies" and individually as
a "Reinsured Policy."
3. AMOUNTS
The amount of reinsurance is the face amount ceded to Life Re as set forth
in Schedule A.
1
ARTICLE II - AUTOMATIC REINSURANCE
1. INSURANCE
When the company retains its maximum limit of retention, as shown in
Schedule A, the Company will cede and Life Re will accept automatically
reinsurance in amounts not exceeding the limits per life in Schedule A of this
Agreement. The liability of Life Re on any automatic reinsurance under this
Agreement begins at the same time as that of the Company.
2. COVERAGES
Life Insurance is exclusively the risk reinsured automatically under this
Agreement. Life Re will not participate in a unilateral enhancement of policy
provisions unless agreed to in writing prior to the granting of the enhancement.
ARTICLE III - PROCEDURES FOR REPORTING
1. GENERAL INFORMATION
Life Re will accept, on a self administered basis, reinsurance in amounts
per life up to the amounts set forth in Schedule A.
2. SELF-ADMINISTERED REPORTING
The Company will remit a check for the balance indicated in the annual
report to Life Re pursuant to Schedule A. If a balance is due the Company, it
will be remitted by Life Re promptly.
ARTICLE IV - PREMIUMS
1. LIFE INSURANCE
Premiums per $1,000,000 for Life Insurance are given in Schedule A. The
premiums per $1,000,000 are applied to the amount of life reinsurance as
outlined in Article I.
2. PREMIUM TAXES
Life Re will not reimburse the Company for state premium taxes on
reinsurance premiums received from the Company.
2
3. NONPAYMENT OF REINSURANCE PREMIUMS
The payment of reinsurance premiums is a condition precedent to the
liability of Life Re under this Agreement. If the Company does not pay premiums
to Life Re as provided in this Agreement and such amounts are more than 120 days
in arrears, Life Re will have the right to terminate the reinsurance under this
Agreement.
4. INTEREST ON DELINQUENT PAYMENTS
If the Company is more than 90 days in arrears in remitting premiums to
Life Re, such premiums will be considered delinquent and interest will be added
to the amount to be remitted. Interest will be calculated from (i) the time the
premiums are due Life Re to (ii) the date the Company pays the premium to Life
Re. The rate of interest charged on delinquent payments will be equal to the
rate listed in the Federal Reserve Statistical Release, as promulgated by the
Board of Governors of the Federal Reserve System, for the monthly average of
Corporate bonds, Xxxxx'x seasoned Aaa (the "Interest Rate").
5. MISSTATEMENTS
If the insured's age or sex was misstated and the amount of insurance on
the Reinsured policies is adjusted, the Company and Life Re will share the
adjustment in proportion to the amount of liability of each at the time of issue
of the policies. Premiums will be recalculated for the correct age or sex and
amounts according to the proportion as above and adjusted without interest. If
the insured is still alive, the method above will be used for past years and the
amounts of reinsurance and premium will be adjusted for the future to the amount
that would have been correct at issue.
3
ARTICLE V - CLAIMS
1. NOTICE
The Company will notify Life Re promptly after receipt of any information
on a claim where reinsurance is involved. The Company will furnish to Life Re as
soon as possible the completed reinsurance claim form and copies of all claim
papers and proofs. However, if the amount reinsured with Life Re is more than
the amount retained by the Company and the claim is contestable, all papers in
connection with such claim, including all underwriting and investigation papers
must be submitted to Life Re for its recommendation before admission of any
liability on the part of the Company.
2. CONTESTED CLAIMS
Whenever the Company has formed a preliminary opinion that a claim might be
denied or contested, and prior to any final action by the Company indicating to
the claimant that the claim is being denied or contested, the Company will give
Life Re the opportunity to review the complete claim file. Life Re will review
this file promptly and, at its option, (a) pay Life Re's full share as if the
claim was not contested, in full discharge of Life Re's obligation to the
Company for that claim, or (b) after consultation with the Company join in the
contest, or ratify the denial, in which case Life Re will communicate to the
Company in writing Life Re's decision to participate in the contest, or ratify
the denial, with respect to that claim.
3. EXPENSES
Life Re will share in the claim expense of any contest or compromise of a
claim in the same proportion that the amount at risk reinsured under this
Agreement bears to the total risk of the Company on all policies being contested
by the Company, and Life Re will share in the total amount of any reduction in
liability in the same proportion. Claim expense will include without limitation
the cost of investigation, legal fees, court costs, and interest charges.
Compensation of salaried officers and employees and any possible
extra-contractual damages will not be considered covered expenses. Life Re will
not be liable for expenses incurred in connection with a dispute or contest
arising out of conificting claims of entitlement to policy proceeds or benefits.
4. MISSTATEMENTS
In the event of an increase or reduction in the amount of the Company's
coverage on any policy reinsured hereunder because of an overstatement or
understatement of age or misstatement of sex, established after the death of the
insured, the Company and Life Re will share in such increase or reduction in
proportion to their respective amounts at risk under that policy.
4
5. PAYMENT
Life Re will pay its share in a lump sum to the Company, without regard to
the form of claim settlement of the Company.
ARTICLE VI - REDUCTIONS, REINSTATEMENTS & CHANGES
1. REINSTATEMENTS
A policy that was reduced, terminated, or lapsed, if reinstated under
regular rules, will be reinstated automatically to the amount that would be in
force had the policy not been reduced, terminated, or lapsed.
2. NONFORFEITURE BENEFITS
Life Re will not participate in nonforfeiture benefits.
ARTICLE VII - DAC TAX
Life Re and the Company hereby agree to the following pursuant to Section
1.848-2(g)(8) of the Income Tax Regulation under Section 848 of the Internal
Revenue Code of 1986, as amended.
(a) The term "party" will refer to either Life Re or the Company as
appropriate.
(b) The terms used in this Article are defined by reference to Regulation
1.848-2. The term "net consideration" will refer to either net
consideration as defined in Regulation Section 1.848-2(f) or gross
amount of premiums and other consideration as defined in Regulation
Section 1.848-3(b) as appropriate.
(c) Each party shall attach a schedule to its federal income tax return
which identifies the relevant
Reinsurance Agreements for which the
joint election under the Regulation has been made.
(d) The party with net positive consideration, as defined in the
Regulation promulgated under Code Section 848, for such Agreement for
each taxable year, shall capitalize specified policy acquisition
expenses with respect to such Agreement without regard to the general
deductions limitation of Section 848(c)(1).
(e) Each party agrees to exchange information pertaining to the amount of
net consideration under such Agreement each year to ensure
consistency.
5
ARTICLE VIII - INSOLVENCY
All reinsurance under this Agreement will be paid on demand by Life Re
directly to the Company, its liquidator, receiver, or statutory successor, on
the basis of the liability of the Company under the policy or policies reinsured
without diminution because of the insolvency of the Company. In the event of the
insolvency of the Company, the liquidator, receiver, or statutory successor of
the Company will give written notice to Life Re of a pending claim against Life
Re or the Company on any policy reinsured within a reasonable time after the
claim is filed in the conservation, liquidation, or insolvency proceedings.
While the claim is pending, Life Re may investigate and interpose, at its own
expense, in the proceedings where the claim is to be adjudicated, any defenses
which it may deem available to the Company or its liquidator, receiver, or
statutory successor. The expense incurred by Life Re will be charged, subject to
court approval, against the Company as an expense of the conservation,
liquidation, or insolvency to the extent of a proportionate share of the benefit
that accrues to the Company as a result of the defenses by Life Re. Where two or
more reinsurers are involved and a majority in interest elect to defend a claim,
the expense will be apportioned in accordance with the terms of the Agreement as
if the expense had been incurred by the Company.
6
ARTICLE IX - ARBITRATION
Life Re and the Company intend that any dispute between them under or with
respect to this Agreement be resolved without resort to any litigation.
Accordingly, Life Re and the Company agree that they will negotiate diligently
and in good faith to agree on a mutually satisfactory resolution of any such
dispute; PROVIDED, HOWEVER, that if any such dispute cannot be so resolved by
them within sixty calendar days (or such longer period as the parties may agree)
after commencing such negotiations, Life Re and the Company agree that they will
submit such dispute to arbitration in the manner specified in, and such
arbitration proceeding will be conducted in accordance with, the rules of the
American Arbitration Association.
The arbitration hearing will be before a panel of three arbitrators, each
of whom must be a present or former officer of a life insurance or life
reinsurance company. Life Re and the Company will each appoint one arbitrator by
written notification to the other party within thirty calendar days after the
date of the mailing of the notification initiating the arbitration. These two
arbitrators will then select the third arbitrator within sixty calendar days
after the date of the mailing of the notification initiating arbitration.
If either Life Re or the Company fail to appoint an arbitrator, or should
the two arbitrators be unable to agree upon the choice of a third arbitrator,
the president of the American Arbitration Association or of its successor
organization or (if necessary) the president of any similar organization
designated by lot of Life Re and the Company within thirty calendar days after
the request will appoint the necessary arbitrators.
The vote or approval of a majority of the arbitrators will decide any
question considered by the arbitrators; PROVIDED, HOWEVER, that if no two
arbitrators reach the same decision, then the average of the two closest
mathematical determinations will constitute the decision of all three
arbitrators. The place of arbitration will be Stamford, Connecticut. Each
decision (including without limitation each award) of the arbitrators will be
final and binding on all parties and will be nonappealable, and (at the request
of either Life Re or the Company) any award of the arbitrators may be confirmed
by a judgment entered by any court of competent jurisdiction. Any award or
judgement will bear interest at an appropriate interest rate. Each party will be
responsible for paying (a) all fees and expenses charged by its respective
counsel, accountants, actuaries, and other representatives in conjunction with
such arbitration and (b) one-half of the fees and expenses charged by each
arbitrator.
7
ARTICLE X - GENERAL PROVISIONS
1. REINSURANCE CONDITIONS
The reinsurance is subject to the same limitations and conditions as the
insurance under the policy or policies written by the Company on which the
reinsurance is based.
2. ERRORS AND OMISSIONS
If either the Company or Life Re unintentionally fails to perform an
obligation that affects this Agreement and such failure results in an error on
the part of the Company or Life Re, the error will be corrected by restoring
both the Company and Life Re to the positions they would have occupied had no
such error occurred. For business reported but not covered under the provisions
of this Agreement, Life Re shall be obligated only for the return of premium
paid, plus interest as provided below.
Any amounts due under this Section 4 will bear interest at a rate agreed
upon by the Company and Life Re or at a rate equal to the Interest Rate as
described in Article IV.5.
3. OFFSET
Any amount which either the Company or Life Re is contractually obligated
to pay to the other party may be paid out of any amount which is due and unpaid
under this Agreement. The application of this offset provision will not be
deemed to constitute diminution in the event of insolvency.
4. INSPECTION
Upon reasonable notice, Life Re may inspect any and all books, records,
documents or similar information relating to or affecting reinsurance under this
Agreement at the home office of the Company during normal business hours.
5. ENTIRE AGREEMENT
This Agreement and the Schedules attached hereto supersede all prior
discussions and written and oral agreements between the parties with respect to
the subject matter of this Agreement. This Agreement and the Schedules attached
hereto contain the sole and entire agreement between the parties hereto with
respect to the subject matter hereof.
8
6. AMENDMENT
This Agreement may be modified or amended only by a writing duly executed
by or on behalf of the Company and Life Re.
7. COUNTERPARTS
This Agreement may be executed simultaneously in any number of
counterparts, each of which will be deemed an original, but all of which will
constitute one and the same instrument.
8. NO ASSIGNMENT
Except as otherwise provided herein, neither party hereto may assign this
Agreement or any right hereunder or part hereof without the prior written
consent of the other party hereto.
9. BINDING EFFECT
This Agreement is binding upon and will inure to the benefit of the parties
and their respective successors and permitted assignees.
10. NOTICES
Any notice, request, instruction, or other document to be given hereunder
by any party hereto to the other party hereto will be in writing and (a)
delivered personally, (b) sent by facsimile, (c) delivered by overnight express,
or (d) sent by registered or certified mail, postage prepaid, as follows:
If to the Company, to:
First Allmerica Financial Life Insurance Company
000 Xxxxxxx Xxxxxx
Xxxxxxxxx, XX 00000
Telephone: (000)000-0000
Facsimile: (000)000-0000
If to Life Re, to:
Life Reassurance Corporation of America
000 Xxxx Xxxxx Xxxx
Xxxxxxxx, Xxxxxxxxxxx 00000
Attention: Vice President, Administration
Facsimile: (000)000-0000
9
or at such other address for a party as will be specified by like notice. Each
notice or other communication required or permitted under this Agreement that is
addressed as provided in this Article XII will, if delivered personally or by
overnight express, be deemed given upon delivery; will, if delivered by
facsimile or similar facsimile transmission, be deemed given on the third
business day after the day it is deposited in a regular depository of the United
States Mail.
Please send all cash remittances to:
Life Reassurance Corporation of America
X.X. Xxx 0000
Xxxxxxxx, Xxxxxxxxxxx 00000
ARTICLE XI - DURATION OF AGREEMENT
This Agreement will be effective on and after the effective date stated in
Article I. It is unlimited in duration but may be amended by mutual consent of
the Company and Life Re. This Agreement may be terminated as of the next January
1 by either party giving 90 days' written notice to the other. Notwithstanding
the foregoing, Life Re may terminate this Agreement as to new and existing
reinsurance in the event the Company does not pay premiums to Life Re, as
provided in Article V.
10
ARTICLE XII - EXECUTION
IN WITNESS WHEREOF, Life Re and the Company have executed this Agreement on
the dates set forth below.
FIRST ALLMERICA FINANCIAL LIFE INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxx, Xx. Witness: /s/
---------------------------------- ---------------------------
Title: AVP & Actuary Place: Worcester, MA
------------------------------- -----------------------------
Date: May 16, 1996
------------------------------
LIFE REASSURANCE CORPORATION OF AMERICA
By: /s/ Witness: /s/
---------------------------------- ---------------------------
Title: Vice President Place: Stamford, CT
------------------------------- -----------------------------
Date: March 21, 1996
------------------------------
11
SCHEDULE A
ATTACHED TO AND MADE A PART OF
AGREEMENT NO. 6153-1
EXCESS OF LOSS REINSURANCE
SECTION 1 - COVER
Subject to the terms of this Agreement, Life Re agrees to reinsure the Net
Loss sustained by the Company under the following policies:
All policies written on the policy forms of Transamerica Occidental Life
Insurance Company and American Mayflower Life Insurance Company of New
York by agents of Allmerica Financial and its subsidiaries in order to
satisfy the right of re-entry of persons insured under a term life
insurance policy of the Company or Allmerica Financial Life Insurance and
Annuity Company.
The Company will retain for its own account, the amount of Net Loss
resulting from each suicide taking place at or after 12:01 A.M., November 22,
1995, set forth below as "Company's Retention", and Life Re will indemnify the
Company for the amount of Net Loss paid by the Company in excess of said
"Company's Retention", provided that the maximum amount for which Life Re shall
be liable hereunder shall not be more than the amount set forth below as "Limit
of Liability of Life Re".
LIMIT OF
COMPANY'S RETENTION LIABILITY OF LIFE RE
EACH SUICIDE EACH SUICIDE
------------ ------------
$ 50,000 $ 5,450,000
The reinsurance afforded by this Exhibit shall apply only to the Company's net
amount at risk. The term "net amount at risk", shall mean the amount of
insurance in force.
A-1
SECTION 2 - DEFINITIONS AND INTERPRETATIONS
(a) SUICIDE
The term "suicide", as used herein, shall mean any death claim
incurred during the waived suicide exclusion period of the policy
covered, where the cause of death has been set forth as suicide on the
death certificate or in a report by the Medical Examiner.
(b) NET LOSS
The term "Net Loss," as used herein, shall mean the actual loss
sustained by the Company in the settlement of claims, payment of
benefits or satisfaction of judgements or awards, in accordance with
the underlying contract, excluding loss adjustment expenses which
shall be pro-rated and excluding extra contractual damages which are
not reinsured under this Agreement. However, any recoveries, including
recoveries under all reinsurances, are to be first deducted from such
loss to arrive at the amount of liability, if any, attaching
hereunder. Nothing, however, in this clause shall be construed as
meaning that losses are not recoverable hereunder until the Net Loss
of the Company has been ascertained.
All recoveries and paynients recovered or received subsequent to a
loss settlement under this Exhibit shall be applied as if recovered or
received prior to the said settlement, and all necessary adjustments
shall be made by the parties hereto.
(c) LOSS ADJUSTMENT EXPENSE
The term "Loss Adjustment Expense" as used herein shall mean
expenditures by the Company, other than for office expenses and for
the salaries and expenses of its employees, made in connection with
the disposition of a claim, loss, or legal proceeding including
investigation, negotiation, and legal expenses, court costs, statutory
penalties, and accrued interest, other than accrued interest which is
part of a judgment. This term shall not include any amount paid or
liability incurred by the Company as a result of its acts or omissions
in the negotiation, settlement, or defense of claims, including any
extra contractual damages, or as a result of any acts or omissions in
dealing with its policyholders.
SECTION 3 - EXCLUSIONS
This Exhibit does not cover increases in face amount of the covered policy.
A-2
SECTION 4 - PREMIUM. REPORTS, AND REMITTANCES
As a condition precedent to Life Re's obligations hereunder the Company
shall pay to Life Re a Minimum and Deposit Premium of $50,000 for the period
November 22, 1995 to December 31, 1996 and $50,000 for each calendar year
thereafter beginning January 1, 1997.
The Company shall forward to Life Re within sixty (60) days after the close
of the period ending December 31, 1996 and each 12-month period thereafter, a
statement of the average net amount at risk during each such period on all the
business covered by this Exhibit.
The premium to be paid to Life Re for the reinsurance provided by this
Exhibit shall be equal to $357.00 per year per $1,000,000 of average net amount
at risk reinsured on the business covered hereunder. Subject to the minimum and
deposit premium provided above, any additional premium due Life Re hereunder,
shall be remitted by the Company to Life Re within sixty (60) days after the
close of each 12-month period ending December 31.
The reinsurance premiums reported and paid annually to Life Re shall be
considered earned by Life Re when so reported.
In addition to the reports and remittances required, the Company shall
furnish such other information as may be required by Life Re for the completion
of Life Re's quarterly and annual statements and internal records.
All reports shall be rendered on forms acceptable to the Company and Life
Re.
Life Re shall reimburse the Company or its legal representative promptly
for loss against which indemnity is hereby provided, upon receipt in the home
office of Life Re of satisfactory evidence of payment of such loss. Such
evidence shall include proof of the insured's prior coverage with the Company or
Allmerica Financial Life Insurance and Annuity Company.
A-3
SECTION 5 - COMMENCEMENT AND TERMINATION
This Exhibit shall apply to covered policies becoming effective at and
after 12:01 A.M., November 22, 1995, with respect to claims or losses resulting
from suicides taking place at and after the aforesaid time and date.
This Exhibit may be terminated by either party sending to the other, by
registered mail, written notice stating that termination shall be effective on
January 1 next following, but not less than ninety (90) days after the mailing
of such notice.
Unless otherwise agreed, Life Re shall not be liable hereunder in respect
of losses resulting from suicides taking place at or after the effective time
and date of the cancellation of this Exhibit.
A-4
AMENDMENT NO. 1 to
Reinsurance Agreement 6153-1, effective November 22, 1995,
between FIRST ALLMERICA FINANCIAL LIFE INSURANCE COMPANY of Worcester,
Massachusetts (the "Company") and LIFE REASSURANCE CORPORATION OF AMERICA of
Stamford, Connecticut ("Life Re").
AMENDMENT NO. 1
Effective November 1, 2000, Schedule A, Section 1 is hereby amended to add
business written on West Coast Life Insurance Company policy forms.
All other provisions of the
Reinsurance Agreement will continue unchanged.
This Amendment is signed in duplicate at the dates and places indicated with an
effective date of November 1, 2000.
FIRST ALLMERICA FINANCIAL LIFE
Date: 3/5/01 INSURANCE COMPANY
--------------------------------
Place: Worcester, MA By: /s/
------------------------------- ------------------------------
Witness: /s/ Title: Vice President and Actuary
----------------------------- ---------------------------
LIFE REASSURANCE CORPORATION
Date: 12/11/00 OF AMERICA
--------------------------------
Place: Stamford, CT By: /s/
------------------------------- ------------------------------
Witness: /s/ Title: Vice President
----------------------------- ---------------------------
SCHEDULE A
ATTACHED TO AND MADE A PART OF
AGREEMENT NO. 6153-1
EXCESS OF LOSS REINSURANCE
SECTION 1 - COVER
Subject to the terms of this Agreement, Life Re agrees to reinsure the Net
Loss sustained by the Company under the following policies:
All policies written on the policy forms of Transamerica Occidental Life
Insurance Company, American Mayflower Life Insurance Company of New York
and West Coast Life Insurance Company by agents of Allmerica Financial
and its subsidiaries in order to satisfy the right of re-entry of persons
insured under a term life insurance policy of the Company or Allmerica
Financial Life Insurance and Annuity Company.
The Company will retain for its own account, the amount of Net Loss
resulting from each suicide taking place at or after 12:01 A.M., November 22,
1995, set forth below as "Company's Retention", and Life Re will indemnify the
Company for the amount of Net Loss paid by the Company in excess of Said
"Company's Retention", provided that the maximum amount for which Life Re shall
be liable hereunder shall not be more than the amount set forth below as "Limit
of Liability of Life Re".
LIMIT OF
COMPANY'S RETENTION LIABILITY OF LIFE RE
EACH SUICIDE EACH SUICIDE
------------ ------------
$ 50,000 $ 5,450,000
A-1
The reinsurance afforded by this Exhibit shall apply only to the Company's
net amount at risk. The term "net amount at risk", shall mean the amount of
insurance in force.
A-2
Amendment No. 2 to
Reinsurance Agreement #6153-1 (Excess of Loss) effective
November 22, 1995 between FIRST ALLMERICA FINANCIAL LIFE INSURANCE COMPANY of
Worcester, Massachusetts ("the Company") and SWISS RE LIFE & HEALTH AMERICA INC.
of Stamford, Connecticut ("the Reinsurer").
/
Effective January 1, 2002, Section 4, Premium, Reports, and Remittances, of
SCHEDULE-A to this Agreement, shall be revised as attached.
All other provisions of the
Reinsurance Agreement will continue unchanged.
FIRST ALLMERICA FINANCIAL LIFE INSURANCE COMPANY
By: /s/ Xxx X. Xxxxxx Attest: /s/
------------------------------------ --------------------------
Title: Vice President Title: Reinsurance Actuary
--------------------------------- ---------------------------
Date: 3/27/02 Date: 3/27/02
---------------------------------- ----------------------------
SWISS RE LIFE & HEALTH AMERICA INC.
By: /s/ Attest: /s/
------------------------------------ ---------------------------
Title: Vice President Title: Second VP
-------------------------------- ----------------------------
Date: 3/19/02 Date: 3/19/02
---------------------------------- -----------------------------
SCHEDULE A
Attached to and Made a Part of
Agreement No. 6153-1
EXCESS OF LOSS REINSURANCE
SECTION 4 -- PREMIUM, REPORTS, AND REMITTANCES
The Company shall forward to the Reinsurer within sixty (60) days after the
close of the period ending December 31, 1996 and each 12-month period
thereafter, a statement of the average net amount at risk during each such
period on all the business covered by this Exhibit.
The premium to be paid to the Reinsurer for the reinsurance provided by
this Exhibit shall be equal to $357.00 per year per $1 ,000.00 of average net
amount at risk reinsured on the business covered hereunder. Any additional
premium due the Reinsurer hereunder shall be remitted by the Company to the
Reinsurer within sixty (60) days after the close of each 12-month period ending
December 31.
The reinsurance premiums reported and paid annually to the Reinsurer shall
be considered earned by the Reinsurer when so reported.
In addition to the reports and remittances required, the Company shall
furnish such other information as may be required by the Reinsurer for the
completion of the Reinsurer's quarterly and annual statements and internal
records.
All reports shall be rendered on forms acceptable to the Company and the
Reinsurer.
The Reinsurer shall reimburse the Company or its legal representative
promptly for loss against which indemnity is hereby provided, upon receipt in
the home office of the Reinsurer of satisfactory evidence of payment of such
loss. Such evidence shall include proof of the insured's prior coverage with the
Company or Allmerica Financial Life Insurance and Annuity Company.
