Amendment Number 14 to the Second Amended and Restated Automatic Indemnity Reinsurance Agreement
Exhibit 99.B(g)(1)(xii)
[CERTAIN PORTIONS OF THIS EXHIBIT CONTAIN CONFIDENTIAL INFORMATION. THE CONFIDENTIAL PORTIONS OF THIS EXHIBIT ARE IDENTIFIED AS [REDACTED] AND HAVE BEEN OMITTED.]
Amendment Number 14
to the
Second Amended and Restated Automatic Indemnity Reinsurance Agreement
This Amendment between The Lincoln National Life Insurance Company of Fort Xxxxx, Indiana (the “Ceding Company”) and Lincoln National Reinsurance Company (Barbados) Limited, a Barbados Corporation (“the Reinsurer”) is effective May 16, 2022.
RECITALS
| 1. | The Ceding Company and the Reinsurer entered into an Automatic Indemnity Reinsurance Agreement effective July 1, 2003, as amended and restated effective November 1, 2013, and as subsequently amended (“the Agreement”). |
| 2. | Article XVII, Section 8 of this Agreement permits amendments as long as they are made in writing and signed by duly authorized officers of both parties. |
| 3. | The Ceding Company and the Reinsurer wish to make such an amendment to add new products and riders issued by the Ceding Company. |
AGREEMENT
NOWTHEREFORE, in consideration of these premises and the mutual covenants contained herein, the Ceding Company and the Reinsurer agree to amend the Agreement as follows:
1. Effective May 16, 2022, Variable Annuity Living Benefits Riders attached to the Lincoln PathBuilder Income® IRA, and Lincoln PathBuilder Income® IRA – Advisory shall be added to Schedules A and C.
2. Effective May 16, 2022, Lincoln PathBuilder Income® IRA, and Lincoln PathBuilder Income® IRA – Advisory products shall be added to Schedule B.
3. The Ceding Company and the Reinsurer agree that Schedules A, B, and C of the Agreement shall be replaced in their entirety with Schedules A, B, and C attached hereto. All terms, provisions and conditions of this Agreement will continue unchanged except as specifically revised in this Amendment.
In WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representatives.
| LINCOLN NATIONAL REINSURANCE COMPANY (BARBADOS) LIMITED | THE LINCOLN NATIONAL LIFE INSURANCE COMPANY | |||
| By: | [REDACTED] | By: | [REDACTED] | |
| Name: | Xxxxxx Xxxx | Name: | Xxxxxxx X. Xxxxxxx | |
| Title: | Assistant Vice President | Title: | Assistant Vice President | |
| Date: | June 16, 2022 | Date: | June 16, 2022 | |
SCHEDULE A
Reinsurance of Guaranteed Benefits (“GB”)
Effective May 16, 2022
Each contract listed in Schedule B contains one or more GB. GBs which are covered by this Agreement include the following:
| Marketing Name of Benefit | Policy Form Nos. |
| Death Benefit Riders | |
| Guarantee of Principal Death Benefit Rider* | 32148 |
| Enhanced Guaranteed Minimum Death Benefit Rider* | 32149 |
| 5% Step-Up Death Benefit Rider* | 32150 |
| 7 Year Ratchet Death Benefit on American Legacy I & II* | - - |
| Estate Enhancement Death Benefit Rider* | 32151 |
| Highest Anniversary Death Benefit Rider eff. 1/9/17* | AR-593 |
| Guarantee of Principal Death Benefit Rider eff. 1/9/17* | ICC16-32148 |
| Guarantee of Principal Death Benefit Rider eff. 1/9/17* | 32148 (9-16) |
| Earnings Optimizer Death Benefit Rider eff. 11/16/15 | AR-590 |
| American Legacy® Target Date Income | |
| Guarantee of Principal Death Benefit (GOP/ROP) eff. 1/21/20* | 32148 (9-16) |
| Lincoln SmartSecurity® Advantage | |
| Variable Annuity Rider | 32793 |
| i4LIFE® Advantage with Guaranteed Income Benefit | |
| Variable Annuity Income Rider | I4LA |
| Variable Annuity Payment Option Rider | I4LA-Q |
| Variable Annuity Payment Option Rider | I4LA-NQ |
| Guaranteed Income Benefit | GIB |
| Increasing GIB | IGIB |
| Annual XXX | XXXX |
| Select Guaranteed Income Benefit | AR-528 |
| i4LIFE® Advantage with Guaranteed Income Benefit (Managed Risk) eff. 5/21/12 |
AR-528 |
| 4LATER® Advantage | |
| Guaranteed Income Later Rider | 4Later |
| 4LATER® Advantage (Managed Risk) eff. 7/2/12 | AR-547 (3-12) |
| 4LATER® Select Advantage | |
| Guaranteed Income Later Rider effective 1/9/17 | AR-547 (3-12) |
| Guaranteed Income Later Rider effective 6/11/18 | AR-547 (03/18) |
| Lincoln Lifetime Income SMAdvantage | |
| Variable Annuity Living Benefits Rider | AR-512 |
| Variable Annuity Living Benefits Rider (LINC Plus)* | AR-512P |
| Lincoln Lifetime Income SMAdvantage 2.0 & | |
| Lincoln Lifetime Income SMAdvantage 2.0 (Managed Risk) eff. 4/2/12 | |
| Variable Annuity Living Benefits Rider eff. 4/2/12* | AR-529 |
| Variable Annuity Guarantee Income Benefit (NY version) | AR-529 |
| Variable Annuity Living Benefits Rider eff. 1/20/15 | AR-566 |
| Variable Annuity Living Benefits Rider eff. 2/20/18 | AR-607 |
| Lincoln Market Select ® Advantage | |
| Variable Annuity Living Benefits Rider eff. 10/5/15 | AR-587 |
| Variable Annuity Living Benefits Rider eff. 5/16/16 | AR-591 |
| Variable Annuity Guarantee Income Benefit (NY version) eff. 8/29/16 | AR-529 |
| Variable Annuity Living Benefits Rider eff. 2/20/18 | AR-607 |
| Lincoln Long-TermCareSMAdvantage Rider | |
| Long-Term Care Coverage Endorsement | AE-517 |
| Long-Term Care Benefits Rider | AR-518, AR-519 |
| Core Income Benefit – eff. 2/21/17 | AR-592 |
| Lincoln Max 6 SelectSM Advantage – eff. 5/22/17 | AR-600 |
| Xxxxxxx XXX Income PlusSM – eff. 1/14/19* | AR-600 |
| Lincoln Wealth PassSM – eff. 9/16/19* | AR-623 |
| Target Date Income Benefit – eff. 1/21/20* | AR-634 |
| Lincoln PathBuilder Income® IRA/ Lincoln PathBuilder Income® IRA - Advisory | |
| Variable Annuity Living Benefits Rider | 22AR-693 |
| Variable Annuity Living Benefits Rider | 22AR-694 |
* issued by Ceding Company only
SCHEDULE B
CONTRACTS WITH ACCEPTED COVERAGES
Contracts covered by this Agreement include all Contracts either issued by the Ceding Company directly or issued by Lincoln Life & Annuity Company of New York and reinsured with the Ceding Company and included in the following list:
| ChoicePlus Variable Annuity |
| ChoicePlus Access Variable Annuity |
| ChoicePlus Bonus Variable Annuity (issued by the Ceding Company only) |
| ChoicePlus II Variable Annuity |
| ChoicePlus II Access Variable Annuity |
| ChoicePlus II Bonus Variable Annuity |
| ChoicePlus II Advance Variable Annuity |
| ChoicePlus Assurance (A Share) (includes wrap fee version) |
| ChoicePlus Assurance (B Share) |
| ChoicePlus Assurance (C Share) |
| ChoicePlus Assurance (Bonus) |
| ChoicePlus Assurance (L Share) |
| ChoicePlus Momentum Income Option |
| ChoicePlus Design (includes all share classes) |
| American Legacy I (issued by the Ceding Company only) |
| American Legacy II (issued by the Ceding Company only) |
| American Legacy III |
| American Legacy III Plus |
| American Legacy III View |
| American Legacy III C-Share |
| Shareholders Advantage (includes wrap fee version) |
| American Legacy Design (includes all share classes) |
| Multi-Fund 1 (issued by the Ceding Company only) |
| Multi-Fund 2 (issued by the Ceding Company only) |
| Multi-Fund 3 (issued by the Ceding Company only) |
| Multi-Fund 4 (issued by the Ceding Company only) |
| Multi-Fund 5 (issued by the Ceding Company only) |
| Multi-Fund Select (issued by the Ceding Company only) |
| Accru Variable Annuity (issued by the Ceding Company only) |
| Accru ChoicePlus (issued by the Ceding Company only) |
Lincoln Investor Advantage® B-Share
Lincoln Investor Advantage® C-Share
Lincoln Investor Advantage® Fee Based
Lincoln Investor Advantage® RIA
American Legacy Series B-Share
American Legacy Series L-Share
American Legacy Series C-Share
American Legacy Signature 1
American Legacy Signature 2
American Legacy Fusion
Shareholder’s Advantage A-Class
American Legacy III® B-Class
Lincoln Choice PlusSM Fusion
Lincoln Choice PlusSM Signature 1
Lincoln Choice PlusSM Signature 2
Lincoln Choice Plus AssuranceSM Series B-Share
Lincoln Choice Plus AssuranceSM Series L-Share
Lincoln Choice Plus AssuranceSM Series C-Share
Lincoln Choice Plus AssuranceSM Series B-Class
Lincoln Choice Plus AssuranceSM (Prime)
Lincoln Choice Plus AssuranceSM Rollover
Lincoln Choice Plus AssuranceSM A-Class
Lincoln InvestmentSolutionsSM
Lincoln Choice PlusSM Advisory
American Legacy® Advisory
Lincoln Investor Advantage® Advisory
Lincoln Investor Advantage® RIA Class
Lincoln Investment Solutions® RIA
Lincoln Core IncomeSM
American Legacy® Target Date Income B-Share
American Legacy® Target Date Income Advisory
Lincoln Choice PlusSM Select B-Share
Lincoln Investor Advantage® Advisory Choice
Lincoln Investor Advantage® Pro B-Share
Lincoln Investor Advantage® Pro C-Share
Lincoln Investor Advantage® Pro Advisory Choice
Lincoln Investor Advantage® Pro Advisory
Lincoln PathBuilder Income® XXX
Xxxxxxx PathBuilder Income® IRA - Advisory
SCHEDULE C
PREMIUM RATE SCHEDULE
Effective May16, 2022
Initial Reinsurance Premium:
The Initial Reinsurance Premium shall equal the Treaty Reserve applicable to each Individual Policy on the date it is first covered by this Agreement. For all business the Ceding Company assumes from Lincoln Life & Annuity of New York, the Initial Reinsurance Premium shall equal the Treaty Reserves less an adjustment reflecting the anticipated future profitability on the business assumed by the Ceding Company effective January 1, 2010. For all business issued by the Ceding Company after the Agreement’s Effective Date, the Initial Premium shall be zero.
Base Reinsurance Premium Rates:
Effective from the Agreement’s Effective Date and the corresponding effective date of any amendment, as appropriate:
| Effective Date of Coverage | 7/1/2003 |
7/26/2004 (B-Share) |
After 7/1/2003 |
||
| Type of Benefit |
Contracts Issued Prior to 7/1/2003 |
Contracts Issued Prior to 7/1/2003 |
Contracts Issued After 6/30/2003 |
All Contracts | |
|
GMDB Type |
Base Reinsurance Premium Annual Rate |
Base Reinsurance |
Base Reinsurance Premium Annual Rate |
Expense, Profit, and Risk Charge Annual Rate |
Applied to |
| Guarantee of Principal Death Benefit – Employer VA | [REDACTED] | [REDACTED] | [REDACTED] | [REDACTED] | Account Value |
| Guarantee of Principal Death Benefit – Individual VA | [REDACTED] | [REDACTED] | [REDACTED] | [REDACTED] | Account Value |
| Enhanced Guaranteed Minimum Death Benefit | [REDACTED] | [REDACTED] | [REDACTED] | [REDACTED] | Account Value |
| Enhanced Guaranteed Minimum Death Benefit with 5% Rollup | [REDACTED] | [REDACTED] | [REDACTED] | [REDACTED] | Account Value |
|
5% Step-Up Death Benefit (Accru Contracts) |
[REDACTED] | [REDACTED] | [REDACTED] | [REDACTED] | Account Value |
| Legacy I and II with 7 Yr Ratchet Benefit | [REDACTED] | [REDACTED] | [REDACTED] | [REDACTED] | Account Value |
| Estate Enhancement Benefit | [REDACTED] | [REDACTED] | [REDACTED] | [REDACTED] | Account Value |
| Estate Enhancement Benefit with 5% Rollup | [REDACTED] | [REDACTED] | [REDACTED] | [REDACTED] | Account Value |
|
GMDB Type |
Rates Applied to |
Base Reinsurance Premium Annual Rate |
Expense, Profit, and Risk Charge |
Applied to | |
| Earnings Optimizer Death Benefit Rider | Riders effective after 11/16/15 | [REDACTED] | [REDACTED] |
Greater of: · Account Value · Sum of all purchase payments adjusted pro-rata for withdrawals* | |
| [REDACTED] | |||||
| Highest Anniversary Death Benefit Rider | Highest Anniversary Component | Riders effective on or after 1/9/17 | [REDACTED] | [REDACTED] | Highest Anniversary Value |
| Guarantee of Principal Component | Riders effective on or after 1/9/17 | [REDACTED] | [REDACTED] | Account Value | |
| Guarantee of Principal Death Benefit |
Riders effective after 1/9/17
|
[REDACTED] | [REDACTED] | Account Value | |
| [REDACTED] | |||||
| Guarantee of Principal Death Benefit – Target Date Income VA | Riders effective on or after 1/21/2020 | [REDACTED] | [REDACTED] | Account Value | |
| Type of Benefit | ||||
|
LTC Type |
Rates Applied to |
Base Reinsurance Premium Annual Rate |
Expense, Profit, and Risk Charge |
Applied to |
|
Long-Term Care Benefit Rider AE-517, AR-518 and AR-519 Accelerated Benefit |
Riders effective after 4/1/2011 |
[REDACTED] |
[REDACTED] |
Guaranteed Amount (#) |
| [REDACTED] |
| Type of Benefit | ||||
| GLB Type | Rates Applied to Riders Effective |
Base Reinsurance Premium Annual Rate |
Expense, Profit, and Risk Charge |
Applied to |
| Lincoln SmartSecurity Advantage – 5 Yr Optional Reset | All In Force Riders effective prior to 5/15/2004 | [REDACTED] | [REDACTED] | Guaranteed Benefit (#) |
| All In Force Riders effective or reset on or after 5/15/2004 | [REDACTED] | [REDACTED] | ||
| Lincoln SmartSecurity Advantage – 1 Yr Automatic Reset |
Riders effective before 1/20/2009
|
0.550% | [REDACTED] | Guaranteed Benefit (#) |
|
Riders effective or reset on or after 1/20/2009
|
[REDACTED] | [REDACTED] | ||
| Lincoln SmartSecurity Advantage – 1 Yr Automatic Reset - Single Life Option with Lifetime Withdrawals | Riders effective before 1/20/2009 | [REDACTED] | [REDACTED] | Guaranteed Benefit (#) |
| Riders effective or reset on or after 1/20/2009 | [REDACTED] | [REDACTED] |
| Lincoln SmartSecurity Advantage – 1 Yr Automatic Reset – Joint Life Option with Lifetime Withdrawals | Riders effective before 1/20/2009 | [REDACTED] | [REDACTED] | Guaranteed Benefit (#) |
| Riders effective or reset on or after 1/20/2009 | [REDACTED] | [REDACTED] | ||
|
4LATER Advantage
|
All Riders | [REDACTED] | [REDACTED] | Current Income Base (#) |
| 4LATER Advantage (Managed Risk) (and transitioning to i4LIFE) | All Riders | [REDACTED] | [REDACTED] | Current Income Base (#) or for transitioning to i4LIFE greater of Income Base or Account value prior to transition (increased for GIB step-ups) |
|
4LATER® Select Advantage (and transitioning to i4LIFE) |
All Riders | [REDACTED] | [REDACTED] | Current Income Base (#) or for transitioning to i4LIFE greater of Income Base or Account value prior to transition (increased for GIB step-ups) |
| Guaranteed Income Benefit on i4Life | Riders effective before 10/1/2009 | [REDACTED] | [REDACTED] | Variable Account Value |
| Riders effective or reset on or after 10/1/2009 | [REDACTED] | [REDACTED] | ||
| Increasing Guaranteed Income Benefit | Riders effective before 10/1/2009 | [REDACTED] | [REDACTED] | Variable Account Value |
| Riders effective or reset on or after 10/1/2009 | [REDACTED] | [REDACTED] | ||
| Annual Step-Up Guaranteed Income Benefit | Riders effective before 10/1/2009 | [REDACTED] | [REDACTED] | Variable Account Value |
| Riders effective or reset on or after 10/1/2009 | [REDACTED] | [REDACTED] | ||
| Lincoln Lifetime Income Advantage | All Riders | [REDACTED] | [REDACTED] | Guaranteed Benefit (#) |
| Lincoln Lifetime Income Advantage Plus | All Riders | [REDACTED] | [REDACTED] | Guaranteed Benefit (#) |
| Lincoln Lifetime Income Advantage 2.0 (and transitioning to i4LIFE) | All Riders | [REDACTED] | [REDACTED] | Current Income Base (#) or for transitioning to i4LIFE greater of Income Base or Account value prior to transition (increased for GIB step-ups) |
| Lincoln Lifetime Income Advantage 2.0 (Managed Risk) (and transitioning to i4LIFE) | All Riders | [REDACTED] | [REDACTED] | Current Income Base (#) or for transitioning to i4LIFE greater of Income Base or Account value prior to transition (increased for GIB step-ups) |
| Guaranteed Income Benefit on i4Life (AR-528 only) | All Riders | [REDACTED] | [REDACTED] | Variable Account Value |
| i4LIFE®Advantage with Guaranteed Income Benefit (Managed Risk) | All Riders | [REDACTED] | [REDACTED] | Variable Account Value |
|
Lincoln Market Select ® Advantage (and transitioning to i4LIFE)
|
All Riders | [REDACTED] | [REDACTED] |
Current Income Base (#) or for transitioning to i4LIFE greater of Income Base or Account value prior to transition (increased for GIB step-ups)
|
| Core Income Benefit | All Riders | [REDACTED] | [REDACTED] |
Greater of: · Deposits (adjusted for excess withdrawals) · Contract Value |
| Lincoln Max 6 SelectSM Advantage | All Riders | [REDACTED] | [REDACTED] | Current Income Base (#) |
| Xxxxxxx XXX Income PlusSM Advantage | All Riders | [REDACTED] | [REDACTED] | Current Income Base (#) |
| Lincoln Wealth PassSM | All Riders | [REDACTED] | [REDACTED] | Rider Charge Base (#) |
| Target Date Income Benefit | All Riders | [REDACTED] | [REDACTED] | Protected Income Base (#) |
|
Lincoln PathBuilder Income® IRA/ Lincoln PathBuilder Income® IRA – Advisory
Variable Annuity Living Benefits Rider |
All Riders | [REDACTED] | [REDACTED] | Income Base (#) |
(#) Guaranteed Benefit, Guaranteed Amount, Current Income Base, Rider Charge Base, and Protected Income Base are as calculated by the terms of the applicable riders
(*) Excludes i4LIFE® Advantage payments
[REDACTED]
Reinsurance premium shall step up to the current charge for any Policy that resets for all benefits except for Lincoln Market Select® Advantage contracts issued with policy form AR-587.
Use of all riders listed above is subject to state approval.
Reinsurer’s Expense, Profit, and Risk Charge (EPRC):
EPRC shall equal the annual rates shown above, payable monthly in arrears computed in the manner as more fully described below.
Monthly Payment of Reinsurance Premium:
[REDACTED]
