Amendment No. 2 to the Automatic Self Administered YRT Reinsurance Agreement effective July 1, 2006 (hereinafter referred to as "Agreement") between American National Insurance Company (hereinafter referred to as "Ceding Company") and Munich American...
Amendment
No. 2
to
the
effective
July 1, 2006
(hereinafter
referred to as "Agreement")
between
American
National Insurance Company
(hereinafter
referred to as "Ceding Company")
and
Munich
American Reassurance Company
(hereinafter
referred to as "Reinsurer")
Treaty
ID: 3438(UL26)
It is
hereby declared and agreed that effective January 1, 2009, Exhibit B Plans
Covered and Binding Limits and Exhibit C Reinsurance Premiums shall be replaced
by the attached Exhibit B Plans Covered and Binding Limits and Exhibit C
Reinsurance Premiums in order to update the Agreement.
All other
terms and conditions of this Agreement shall remain unaltered.
EXECUTION
Made in
duplicate and executed by all parties. This amendment will not be effective
until all parties have signed.
For
American National Insurance Company
EXHIBIT B
Plans
Covered and Binding Limits
The
business automatically reinsured under this Agreement is defined as
follows:
B.1 PLANS,
RIDERS AND BENEFITS
Policies
issued on plans with effective dates within the applicable period shown below
may qualify for automatic reinsurance under the terms of this
Agreement.
|
Plan
Identification
|
Policy
Form
|
Commencement
Date
|
Product
Class*
|
|
LTG
UL bands 3 and 4
LTG
UL band 2 - facultative only
|
IMUL
IMUL
|
July
1, 1006
July
1, 2006
|
1
1
|
|
Executive
UL (Cash Accumulation Universal Life)
Executive
UL (Cash Accumulation Universal Life – Unisex Version
|
EXEC-UL
EXEC-ULU
|
April
14, 2008
April
14, 2008
|
1
1
|
|
VUL
2008
VUL
2008 Group Policy
VUL2008
Group Certificate
|
WQVUL08
GWQVULP08
GWQVULC08
|
January
1, 2009
January
1, 2009
January
1, 2009
|
2
2
2
|
|
Product
Class 1 = 6- Underwriting class rate
structure Product
Class 2 = 3- Underwriting class rate
structure
|
|||
B.2 BASIS
The
Reinsurer's share will be 3 3.3 3 3 3 3 3 % of the total ceded amount on each
policy on a
first
dollar quota share basis. This amount will not exceed the Reinsurer's share of
the
maximum
Automatic Binding Limits specified in Exhibit B.3.
B.3 AUTOMATIC
BINDING LIMITS
(a) Life
for the LTG UL product
|
Issue
Ages
|
(Pool)
Maximum
Standard
– Table 16
|
|
All
|
$10,000,000
|
The
(pool) maximum autobind amounts above exclude the Ceding Company's
retention.
(b) Life
for the Executive UL product effective April 14, 2008, and
I Life for the Variable UL product
effective January 1, 2009.
|
Issue
Ages
|
(Pool)
Maximum
Standard
– Table 16
|
|
All
|
$20,000,000
|
The
(pool) maximum autobind amounts above exclude the Ceding Company's
retention.
B.4 JUMBO
LIMITS
The
Ceding Company will not cede any risk automatically if, according to information
available to the Ceding Company, the total amount in force and applied for on
the life with all insurance companies, including any amount to be replaced,
exceeds the applicable amounts shown below.
(a) Life
for the LTG UL product: $25,000,000
(b) Life
for the Executive UL product effective April 14, 2008: $50,000,000.
Life for
the Variable UL product effective January 1, 2009: $50,000,000.
B.5 CONDITIONAL
RECEIPT OR TEMPORARY INSURANCE AGREEMENT
The
amount of such coverage provided by the Reinsurer will be limited to its share
of the following amounts provided by the Ceding Company's Conditional Receipt or
Temporary Insurance Agreement.
|
Age
|
Maximum
Amount
|
|
All
|
The
lesser of (1) Automatic Binding Limit in Exhibit B.3. and (2) the amount
of
insurance
provided by the Ceding Company's Conditional Receipt or
Temporary
Insurance
Agreement less the Ceding Company's Retention in Exhibit
A.I(b)
|
B.6 CESSION
LIMITS
|
|
(a)
Minimum Initial Cession: Total amount of reinsurance ceded to all reinsurers
on an automatic basis must equal or exceed $375,000 ($500,000 Policy Face
Amount).
|
|
|
(b)
Minimum cession for Policy Increase: Underwritten increases greater than
or equal to $ 100,000 but less than $500,000 shall be reinsured if the
original policy was reinsured. Underwritten increases of $500,000 or more
shall be reinsured regardless of whether the original policy was
reinsured.
|
|
|
(c)
Trivial Amount: Total amount of reinsurance ceded to all reinsurers
must equal or exceed $25,000.
|
EXHIBIT C
Reinsurance
Premiums
C.1 LIFE
Plans covered under this Agreement
will be reinsured on a YRT basis. Reinsurance
premiums will be based on the 2001
VBT Smoker/Non-Smoker Distinct Select &
Ultimate (Male & Female) ALB
rate scale shown in Exhibit G times the following
multiples in all years:
Product
Class 1: LTG UL and Executive UL
|
Plans
|
Classification
|
Band
2
|
Band
3
|
Band
4
|
|
Life
Coverage
|
Preferred
Plus NT
|
52%
|
50%
|
48%
|
|
Preferred
NT
|
60%
|
57%
|
55%
|
|
|
Preferred
TU.
|
78%
|
74%
|
71%
|
|
|
Standard
Plus NT
|
72%
|
69%
|
66%
|
|
|
Standard
NT
|
85%
|
81%
|
77%
|
|
|
Standard
TU
|
86%
|
82%
|
78%
|
Product
Class 2: Variable UL
|
Plans
|
Classification
|
Band
2
|
Band
3
|
Band
4
|
|
Life
Coverage
|
Preferred
NT
|
60%
|
54.5%
|
54%
|
|
Standard
NT
|
85%
|
81%
|
77%
|
|
|
Standard
TU
|
86%
|
82%
|
78%
|
Product
Class I = 6-Underwriting class rate structure
Product
Class 2 = 3-Underwriting class rate structure
Band 1:
$100,000 to $249,999
Band 2:
$250,000 to $499,999
Band 3:
$500,000 to $999,999
Band 4:
$1,000,000 and greater
C.2 AGE
BASIS
Age Last
Birthday
C.3 POLICY
FEES
The
Reinsurer will not participate in any policy fees.
C.4 RECAPTURE
PERIOD
Number of
years: 10
C.5 STANDARD
RATINGS
Premiums
will be based on the standard rate increased by an extra 25% per table of
assessed rating.
Multiples
are the same as those for standard life coverage.
C.6 EXTRAS
The total
premium remitted to the Reinsurer will include the flat extra premium minus
the
discounts
shown below.
Type
of Flat Extra
Premium First
Year Renewal
Temporary
(1-5
years) 10% 10%
Permanent
(6 years &
greater) 75% 10%
C.7 RIDERS
AND BENEFITS
Waiver
of Premium
Reinsurance
premiums will be 10% of the Ceding Company's premiums, as shown in this Exhibit,
in the first policy year and 85% in renewal years.
