Amendment Number 12 to the Second Amended and Restated Automatic Indemnity Reinsurance Agreement
Exhibit g(1)(x)
[CERTAIN PORTIONS OF THIS EXHIBIT CONTAIN CONFIDENTIAL INFORMATION. THE CONFIDENTIAL PORTIONS OF THIS EXHIBIT ARE IDENTIFIED AS [REDACTED] AND HAVE BEEN OMITTED.]
Amendment Number 12
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 October 12, 2020.
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 further amended by amendments
executed June 9, 2016, and effective August 29, 2016, January 9, 2017, May 22, 2017, February 20, 2018, May 21, 2018, January 14, 2019, September 16, 2019, January 21, 2020, and June 1, 2020, and September 14, 2020 (“the Agreement”).
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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.
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3.
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The Ceding Company and the Reinsurer wish to make an amendment to restructure the Schedule C listing of premium and expense/profit/risk charges (EPRC).
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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:
2.
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The Ceding Company and the Reinsurer agree that Schedule C of the Agreement shall be replaced in its entirety with Schedule C attached hereto.
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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 THE LINCOLN NATIONAL LIFE COMPANY (BARBADOS) LIMITED INSURANCE COMPANY
By: /s/ Xxxxxxxx X. Xxxxxxxx By: /s/ Xxxxxxx X. Xxxxxxx
Name: __Kristine M. Kattmann_____________ Name: __William A.
Panyard______________
Title: ___Vice President ___________________ Title: ___Assistant Vice
President___________
Date: 12 Nov. 2020 Date: November 12, 2020
SCHEDULE C
Effective October 12, 2020
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
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7/1/2003
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7/26/2004
(B-Share)
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After 7/1/2003
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Type of Benefit
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Contracts Issued
Prior to 7/1/2003
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Contracts Issued
Prior to 7/1/2003
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Contracts Issued
After 6/30/2003
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All Contracts
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GMDB Type
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Base Reinsurance Premium Annual Rate
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Base Reinsurance Premium Annual Rate
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Base Reinsurance Premium Annual Rate
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Expense, Profit, and Risk Charge Annual Rate
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Applied to
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Guarantee of Principal Death Benefit – Employer VA
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[REDACTED]
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[REDACTED]
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[REDACTED]
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[REDACTED]
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Account Value
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[REDACTED]
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[REDACTED]
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[REDACTED]
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[REDACTED]
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Account Value
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Enhanced Guaranteed Minimum Death Benefit
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[REDACTED]
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[REDACTED]
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[REDACTED]
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[REDACTED]
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Account Value
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Enhanced Guaranteed Minimum Death Benefit with 5% Rollup
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[REDACTED]
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[REDACTED]
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[REDACTED]
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[REDACTED]
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Account Value
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5% Step-Up Death Benefit
(Accru Contracts)
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[REDACTED]
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[REDACTED]
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[REDACTED]
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[REDACTED]
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Account Value
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Legacy I and II with 7 Yr Ratchet Benefit
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[REDACTED]
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[REDACTED]
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[REDACTED]
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[REDACTED]
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Account Value
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Estate Enhancement Benefit
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[REDACTED]
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[REDACTED]
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[REDACTED]
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[REDACTED]
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Account Value
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Estate Enhancement Benefit with 5% Rollup
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[REDACTED]
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[REDACTED]
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[REDACTED]
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[REDACTED]
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Account Value
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GMDB Type
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Rates Applied to Riders Effective
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Base Reinsurance Premium Annual Rate
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Expense, Profit, and Risk Charge
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Applied to
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Earnings Optimizer Death Benefit Rider
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Riders effective after 11/16/15
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[REDACTED]
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[REDACTED]
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Greater of:
•Account Value
•Sum of all purchase payments adjusted pro-rata for withdrawals*
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[REDACTED]
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Highest Anniversary Death Benefit Rider
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Highest Anniversary Component
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Riders effective on or after 1/9/17
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[REDACTED]
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[REDACTED]
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Highest Anniversary Value
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Guarantee of Principal Component
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Riders effective on or after 1/9/17
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[REDACTED]
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[REDACTED]
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Account Value
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Riders effective after 1/9/17
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[REDACTED]
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[REDACTED]
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Account Value
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[REDACTED]
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Guarantee of Principal Death Benefit – Target Date Income VA
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Riders effective on or after 1/21/2020
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[REDACTED]
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[REDACTED]
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Account Value
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Type of Benefit
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LTC Type
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Rates Applied to Riders Effective
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Base Reinsurance Premium Annual Rate
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Expense, Profit, and Risk Charge
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Applied to
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Long-Term Care Benefit Rider
XX-000, XX-000 xxx XX-000
Accelerated Benefit
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Riders effective after 4/1/2011
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[REDACTED]
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[REDACTED]
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Guaranteed Amount (#)
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[REDACTED]
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Type of Benefit
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GLB Type
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Rates Applied to Riders Effective
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Base Reinsurance Premium Annual Rate
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Expense, Profit, and Risk Charge
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Applied to
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Lincoln SmartSecurity Advantage – 5 Yr Optional Reset
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All In Force Riders effective prior to 5/15/2004
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[REDACTED]
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[REDACTED]
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Guaranteed Benefit (#)
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All In Force Riders effective or reset on or after 5/15/2004
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[REDACTED]
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[REDACTED]
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Lincoln SmartSecurity Advantage – 1 Yr Automatic Reset
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Riders effective before 1/20/2009
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[REDACTED]
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[REDACTED]
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Guaranteed Benefit (#)
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Riders effective or reset on or after 1/20/2009
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[REDACTED]
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[REDACTED]
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Lincoln SmartSecurity Advantage – 1 Yr Automatic Reset - Single Life Option with Lifetime Withdrawals
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Riders effective before 1/20/2009
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[REDACTED]
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[REDACTED]
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Guaranteed Benefit (#)
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Riders effective or reset on or after 1/20/2009
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[REDACTED]
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[REDACTED]
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Lincoln SmartSecurity Advantage – 1 Yr Automatic Reset – Joint Life Option with Lifetime Withdrawals
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Riders effective before 1/20/2009
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[REDACTED]
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[REDACTED]
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Guaranteed Benefit (#)
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Riders effective or reset on or after 1/20/2009
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[REDACTED]
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[REDACTED]
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4LATER Advantage
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All Riders
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[REDACTED]
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[REDACTED]
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Current Income Base (#)
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4LATER Advantage (Managed Risk) (and transitioning to i4LIFE)
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All Riders
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[REDACTED]
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[REDACTED]
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Current Income Base (#) or for transitioning to i4LIFE greater of Income Base or Account value prior to transition (increased for GIB step-ups)
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4LATER® Select Advantage
(and transitioning to i4LIFE)
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All Riders
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[REDACTED]
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[REDACTED]
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Current Income Base (#) or for transitioning to i4LIFE greater of Income Base or Account value prior to transition (increased for GIB step-ups)
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Guaranteed Income Benefit on i4Life
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Riders effective before 10/1/2009
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[REDACTED]
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[REDACTED]
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Variable Account Value
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Riders effective or reset on or after 10/1/2009
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[REDACTED]
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[REDACTED]
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Increasing Guaranteed Income Benefit
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Riders effective before 10/1/2009
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[REDACTED]
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[REDACTED]
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Variable Account Value
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Riders effective or reset on or after 10/1/2009
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[REDACTED]
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[REDACTED]
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Annual Step-Up Guaranteed Income Benefit
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Riders effective before 10/1/2009
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[REDACTED]
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[REDACTED]
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Variable Account Value
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Riders effective or reset on or after 10/1/2009
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[REDACTED]
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[REDACTED]
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Lincoln Lifetime Income Advantage
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All Riders
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[REDACTED]
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[REDACTED]
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Guaranteed Benefit (#)
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Lincoln Lifetime Income Advantage Plus
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All Riders
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[REDACTED]
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[REDACTED]
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Guaranteed Benefit (#)
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Lincoln Lifetime Income Advantage 2.0 (and transitioning to i4LIFE)
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All Riders
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[REDACTED]
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[REDACTED]
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Current Income Base (#) or for transitioning to i4LIFE greater of Income Base or Account value prior to transition (increased for GIB step-ups)
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Lincoln Lifetime Income Advantage 2.0 (Managed Risk) (and transitioning to i4LIFE)
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All Riders
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[REDACTED]
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[REDACTED]
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Current Income Base (#) or for transitioning to i4LIFE greater of Income Base or Account value prior to transition (increased for GIB step-ups)
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Guaranteed Income Benefit on i4Life (AR-528 only)
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All Riders
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[REDACTED]
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[REDACTED]
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Variable Account Value
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i4LIFE®Advantage with Guaranteed Income Benefit (Managed Risk)
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All Riders
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[REDACTED]
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[REDACTED]
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Variable Account Value
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Lincoln Market Select ® Advantage (and transitioning to i4LIFE)
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All Riders
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[REDACTED]
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[REDACTED]
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Current Income Base (#) or for transitioning to i4LIFE greater of Income Base or Account value prior to transition (increased for GIB step-ups)
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All Riders
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[REDACTED]
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[REDACTED]
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Greater of:
•Deposits (adjusted for excess withdrawals)
•Contract Value
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All Riders
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[REDACTED]
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[REDACTED]
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Current Income Base (#)
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Xxxxxxx XXX Income PlusSM Advantage
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All Riders
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[REDACTED]
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[REDACTED]
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Current Income Base (#)
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Lincoln Wealth PassSM
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All Riders
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[REDACTED]
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[REDACTED]
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Rider Charge Base (#)
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Target Date Income Benefit
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All Riders
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[REDACTED]
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[REDACTED]
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Protected Income Base (#)
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(#) 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.
Both the Base Reinsurance Premium and the EPRC are payable in arrears after the end of each calendar month. The monthly payment for all benefit types shall be
computed by adding the appropriate Base Reinsurance Premium annual rate to the EPRC annual rate, then dividing the total by twelve and multiplying the result times the end of the month Guaranteed Benefit Amount, the Current Income Base, Account Value,
Variable Account Value, Rider Charge Base, Protected Income Base, or Deposits adjusted for withdrawals, as applicable. Where the total of the Base Reinsurance Premium and EPRC is equal to the policy rider charge, the calculated rider charge may be
used in lieu of the monthly calculation described above.