AUTOMATIC REINSURANCE AGREEMENT
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA, Worcester, Massachusetts
(hereinafter called the CEDING COMPANY)
and
GENERAL AMERICAN LIFE INSURANCE COMPANY, St. Louis, Missouri
(hereinafter called "GENERAL AMERICAN")
This Agreement is Effective July 1, 1986
ARTICLE I AUTOMATIC COVERAGE
A. All automatic reinsurance required by the CEDING COMPANY on
conventionally underwritten risks under the policy plan listed below shall
be ceded on a quota-share basis and 33 1/3% of all such amounts so ceded
shall be automatically assumed by GENERAL AMERICAN in accordance with the
terms of this Agreement:
EXCEPTIONAL LIFE II
EXCEPTIONAL RETIREMENT LIFE II
B. Coverage ceded under the terms of this Agreement shall include
coverage originating from issues reinsured by the CEDING COMPANY for their
subsidiary SMA Life Assurance Company.
C. If the CEDING COMPANY retains less than its maximum retention, as
shown in Exhibit I, GENERAL AMERICAN shall accept automatically reinsurance
in an amount not to exceed the amount retained by the CEDING COMPANY on the
current application. This type of automatic reinsurance will be known as
special automatic.
D. Whenever the CEDING COMPANY is already on the risk for its maximum
retention under policies previously issued, the CEDING COMPANY may
automatically cede additional amounts to GENERAL AMERICAN, subject to the
terms of this Agreement.
E. The CEDING COMPANY agrees not to automatically bind GENERAL AMERICAN
when:
1. The amount to be ceded to GENERAL AMERICAN exceeds two times the
maximum retention limits, as shown in Exhibit I, on any one life.
2. The risk is a jumbo risk defined as one on which the sum of
insurance already in force and the amount currently applied for in the
CEDING COMPANY and in all other companies exceeds $10,000,000.
ARTICLE II FACULTATIVE PROVISIONS
A. The CEDING COMPANY shall have the option to cede any case
facultatively which it does not wish to cede automatically or which it may
not cede automatically under the provisions of Article I.
B. On facultative submissions GENERAL AMERICAN shall have no liability
until it has communicated its final approval to the CEDING COMPANY.
C. In no case will GENERAL AMERICAN'S offer on facultative submissions be
deemed to be still open after 120 days have elapsed from the date of
GENERAL AMERICAN'S offer to participate in the risk. Non-receipt of the
cession or additional information within the 120 days will result in
GENERAL AMERICAN closing its file and giving written notice of such action.
ARTICLE III DETERMINATION OF NET AMOUNT AT RISK
A. In the year of issue the amount at risk is defined as the amount of
insurance reinsured.
B. In all subsequent policy years, the amount at risk is defined as the
amount of insurance reinsured less one-third of the accumulated policy
value on the entire policy at the end of the prior year for automatic
reinsurance and less all accumulated policy values for facultative
reinsurance and any exchanges.
C. Increases in the death benefit that are underwritten in accordance
with the CEDING COMPANY'S usual underwriting standards for individually
selected risks for new issues will be considered as new insurance for the
purpose of determining the reinsurance amount at risk.
ARTICLE IV REINSURANCE PREMIUMS
A. The basis for figuring the premiums payable for this coverage shall be
determined according to the amount reinsured per insured life as follows:
FIRST $3,000,000 REINSURED PER INSURED LIFE
The consideration payable for this coverage shall be based on the
Current Mortality Charges shown in Exhibit II, multiplied by the
following percentages:
POLICY YEAR AUTOMATIC FACULTATIVE
----------- --------- -----------
1 0% 0%
2-10 63% 76%
11 & after 80% 80%
For substandard table ratings, the rates will be increased by 25% per
table.
The premium will be increased by any flat extra premium charged by insured
on the face amount initially reinsured, less total allowances in the amount
of 100% of any first year permanent (payable 6 years or more) extra or 20%
of any first year temporary flat extra premium, and 20% of any renewal flat
extra premium.
2
Increases in the death benefit that are underwritten in accordance with the
CEDING COMPANY'S usual underwriting standards for individually selected
risks for new issues will be treated as new business and the percentages
will recommence at the first year.
REINSURED AMOUNTS IN EXCESS OF $3,000,000 PER INSURED LIFE
Premiums for Life reinsurance of amounts in excess of $3,000,000 per
insured life will be based on the rates shown in Exhibit III.
Flat extra premiums will be on the same basis as shown above.
B. Other Insured Rider
When the Other Insured Rider is reinsured along with a base policy on
the Exceptional Life II or Exceptional Retirement Life II plan, the
reinsurance premium payable for coverage of this Rider will be determined
by the rate basis applicable to the base policy to which the Rider is
attached, with the rate adjusted for the age of the insured covered by the
Rider.
C. Reinsurance premiums on cases which terminate or are reissued to
reduce the amount will be based on the exact number of days of coverage
during the policy year in which termination or reduction takes place.
Premiums on cases which are reinstated after coverage has ceased will be
based on the exact number of days of coverage. Interest will not be taken
into account in these calculations.
D. State Premium Tax Reimbursement
All reinsurance premiums paid to GENERAL AMERICAN by the CEDING
COMPANY shall be subject to a state premium tax reimbursement. The method
of calculating the state premium tax reimbursement shall be to determine an
average tax rate paid by the CEDING COMPANY, and then to apply this tax
rate against the reinsurance premiums paid. Such tax rate shall be the
ratio of total state premium taxes paid to total ordinary premiums received
by the CEDING COMPANY. State premium tax reimbursement shall continue to be
paid annually, so long as the current method of paying state premium taxes
remains unchanged.
E. Guarantee of Rates
For technical reasons the Life reinsurance rates cannot be guaranteed
for more than one year. On all reinsurance ceded at these rates, however,
GENERAL AMERICAN anticipates continuing to accept premiums on the basis of
the rates as described in paragraph A of this Article.
ARTICLE V PAYMENT OF REINSURANCE PREMIUMS
A. CEDING COMPANY shall self-administer the business ceded and shall
provide GENERAL AMERICAN with a monthly report including pertinent data
relative to the business ceded, along with a monthly premium billing
statement and payment of any net amount due GENERAL AMERICAN as shown on
the statement.
3
ARTICLE VI ADJUSTMENT IN COVERAGE
A. Adjustments in coverage will be made only on the policy anniversary
unless the insured applies for additional coverage on an off-anniversary
basis. Any such additional reinsurance will be handled as if it were a new
sale.
B. The minimum cession amount is $25,000 for Life reinsurance.
C. Off anniversary terminations, including death, will have pro-rata
reinsurance premium adjustments but not any insurance amount adjustments.
D. Terminations on the anniversary will not have any reinsurance premium
or reinsurance amount adjustments.
ARTICLE VII EXCHANGES OF PRIOR ISSUES
A. Existing CEDING COMPANY or SMA Life policies in force as of the date
the Exceptional Life II and Exceptional Retirement Life II plans were
introduced may be exchanged for the new policies covered by this Agreement.
Premiums will be based on a point in scale transfer to the premium basis
covered in Article IV of this Agreement.
ARTICLE VIII ERRORS AND OMISSIONS
A. GENERAL AMERICAN shall be bound as the CEDING COMPANY is bound, and it
is expressly understood and agreed that if nonpayment of premium within the
time specified or failure to comply with any terms of this agreement is
hereby shown to be unintentional or the result of misunderstanding or
oversight on the part of either the CEDING COMPANY or GENERAL AMERICAN,
both the CEDING COMPANY and GENERAL AMERICAN shall be restored to the
position they would have occupied had no such error or oversight occurred.
ARTICLE IX EXPENSE OF ORIGINAL POLICY
A. The CEDING COMPANY shall bear the expense of all medical examinations,
inspection fees and other charges incurred in connection with the original
policy.
ARTICLE X RECAPTURE PRIVILEGE AND REDUCTIONS
A. In case the CEDING COMPANY shall increase its maximum limit of
retention on policies issued on either a standard or substandard basis as
shown in Exhibit I, after such policies have been in force ten years
measured from the date of issue, a corresponding reduction may be made at
the option of the CEDING COMPANY in the reinsurance then in force under
this agreement.
B. No reinsurance is eligible for recapture unless the CEDING COMPANY
retains its maximum retention in effect at the time the policy is issued.
C. If there is reinsurance in other companies on such risks, the
necessary reduction is to be applied to the reinsurance in each company in
proportion to the reinsurance in that company to the total outstanding
reinsurance on the risk involved.
D. Any policy termination or partial reduction on a wholly reinsured
policy shall not affect other reinsurance in force.
4
E. Any policy termination or reduction on a partially reinsured policy
shall first cause a reduction in the reinsurance only on the partially
reinsured policy. If other reinsurance needs to be reduced to fill the
CEDING COMPANY'S retention, such reduction in reinsurance shall be
proportionate among companies, in proportion to the amount of reinsurance
in each company to the total outstanding reinsurance on the risk involved.
F. Any policy termination or reduction on a wholly retained case shall
cause a proportionate reduction by the CEDING COMPANY in all other existing
reinsurance.
G. Whenever the initial amount of existing reinsurance under this
agreement would reduce to $10,000 or less, because of recapture eligibility
or reduction in coverage, that reinsurance shall be wholly recaptured.
ARTICLE XI CLAIMS
A. The liability of GENERAL AMERICAN on any reinsurance under this
agreement shall commence simultaneously with that of the CEDING COMPANY.
B. In every case of loss, copies of the proofs obtained by the CEDING
COMPANY shall be taken by GENERAL AMERICAN as sufficient. Copies thereof,
together with proof of the amount paid on such claim by the CEDING COMPANY
shall be furnished to GENERAL AMERICAN when requesting its share of the
claim. However, if the amount of Life benefits or Accidental Death and
Waiver of Premium benefits reinsured with GENERAL AMERICAN in connection
with any claim for such benefits is in excess of the amount of such
benefits retained by the CEDING COMPANY and the claim is contestable, all
papers in connection with such claim should be submitted to GENERAL
AMERICAN for its recommendation before any admission of any liability.
C. The CEDING COMPANY shall notify GENERAL AMERICAN of its intention to
contest, compromise, or litigate a claim, and GENERAL AMERICAN shall pay
its share of any settlement up to the maximum that would have been payable
under the specific policy had there been no controversy plus specific
expenses involved, unless it declines to be a party to the contest,
compromise or litigation, in which case it shall pay the full amount of its
share of the claim to the CEDING COMPANY.
Compensation of salaried officers and employees of the CEDING COMPANY and
any extra-contractual damages including punitive and exemplary damages
based upon actual bad faith, failure to exercise good faith or tortious
conduct of the CEDING COMPANY shall not be included in GENERAL AMERICAN'S
share of the specific expenses and final settlement. In determining the
existence of actual bad faith, failure to exercise good faith or tortious
conduct of the CEDING COMPANY, the parties shall not be required to follow
the reason indicated by the court which awarded such damages. Rather, the
parties shall act in good faith to determine the actual reason for the
award.
D. For approved waiver of premium benefit claims, GENERAL AMERICAN shall
pay the CEDING COMPANY premiums at the rate applicable to the original
policy for life and supplemental benefits, based on the amount of waiver of
premium benefit reinsured.
5
ARTICLE XII REINSTATEMENT
A. Any policy originally reinsured in accordance with the terms and
conditions of this agreement by the CEDING COMPANY may be automatically
reinstated with GENERAL AMERICAN so long as the principal policy is
reinstated in accordance with the terms and rules of the CEDING COMPANY.
ARTICLE XIII ARBITRATION
A. Both the CEDING COMPANY and GENERAL AMERICAN shall consider this
agreement from the standpoint of a "gentlemen's agreement" and not merely
as a legal obligation. It may be amended from time to time by written
agreement between the CEDING COMPANY and GENERAL AMERICAN. The terminology
used herein as well as any procedure, either expressed or implied, shall be
construed according to the custom and usage in the business.
B. Any disagreement between the CEDING COMPANY and GENERAL AMERICAN shall
be settled by arbitration. Each party shall appoint on arbitrator, and the
third is to be selected by these two representatives. Should the two
arbitrators not be able to agree on the choice of the third, such
appointment shall be left to the President of the American Council of Life
Insurance or its successor organization. It is agreed that all three
arbitrators must be officers of life insurance companies other than the two
parties to this agreement. The written decision of the arbitrators shall be
binding on both the CEDING COMPANY and GENERAL AMERICAN. The cost of
arbitration shall be borne by the losing party unless the arbitrators
decide otherwise.
ARTICLE XIV INSOLVENCY
A. In the event of insolvency of the CEDING COMPANY, all reinsurance
shall be payable directly to the liquidator, receiver, or statutory
successor of the CEDING COMPANY without diminution because of the
insolvency of the CEDING COMPANY.
B. In the event of insolvency of the CEDING COMPANY, the liquidator,
receiver, or statutory successor shall give GENERAL AMERICAN written notice
of the pendency of a claim on a policy reinsured within a reasonable time
after such claim is filed in the insolvency proceeding. During the pendency
of any such claim, GENERAL AMERICAN may investigate such claim and
interpose in the name of the CEDING COMPANY (its liquidator, receiver, or
statutory successor), but at its own expense, in the proceeding where such
claim is to be adjudicated any defense or defenses which GENERAL AMERICAN
may deem available to the CEDING COMPANY or its liquidator, receiver, or
statutory successor.
C. The expense thus incurred by GENERAL AMERICAN shall be chargeable,
subject to court approval, against the CEDING COMPANY as part of the
expense of liquidation to the extent of a proportionate share of the
benefit which may accrue to the CEDING COMPANY solely as a result of the
defense undertaken by GENERAL AMERICAN. Where two or more reinsurers are
participating in the same claim and a majority in interest elect to
interpose a defense or defenses to any such claim, the expense shall be
apportioned in accordance with the terms of the reinsurance agreement as
though such expense had been incurred by the CEDING COMPANY.
6
ARTICLE XV RIGHT TO INSPECT
A. GENERAL AMERICAN may at all reasonable times inspect in the CEDING
COMPANY'S offices the original papers, records, books, files, etc.,
referring to the business under this agreement.
ARTICLE XVI TERMINATION OF AGREEMENT
A. This agreement may be terminated at any time by either party giving
three months' notice of termination in writing.
B. The CEDING COMPANY shall continue to submit and GENERAL AMERICAN shall
continue to accept cases for the three months following the date of written
notice of termination.
C. For business previously reinsured and in force, the provisions of this
agreement shall continue to apply.
IN WITNESS WHEREOF, this agreement shall be effective as of 12:01 A.M., July 1,
1986, and is hereby executed in good faith between State Mutual Life Assurance
Company of America, Worcester, Massachusetts, referred to as the CEDING COMPANY,
and GENERAL AMERICAN LIFE INSURANCE COMPANY, St. Louis, Missouri, referred to as
GENERAL AMERICAN, and duly signed by both parties' respective officers as
follows:
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Attest by: /s/ Xxxxxx X. Mill, Jr. By: /s/
------------------------------ -----------------------------
Title: Assistant Vice President Title: Vice President and Actuary
& Associate Actuary
Date: May 18, 1987
----------------------------------
GENERAL AMERICAN LIFE INSURANCE COMPANY
Attest by: /s/ By: /s/
------------------------------ -----------------------------
Title: Reinsurance Treaty Specialist Title: Vice President
Date: April 1, 1987
-----------------------------------
7
EXHIBIT I
STATE MUTUAL OF AMERICA RETENTION SCHEDULE
LIFE
STANDARD RISKS,
SPECIAL CLASSES SPECIAL CLASSES SPECIAL CLASSES
X,X,X, & X, XXX X,X, & H, AND J, L., & P, AND
FLAT EXTRAS OF FLAT EXTRAS OF FLAT EXTRAS OF
AGES $10.00 OR LESS(a) $10.01-$20.00(b) $20.01 AND OVER
------ ----------------- ----------------- ---------------
0 $ 400,000 $ 200,000 $ 100,000
1-17 $ 800,000 $ 600,000 $ 200,000
18-60 $ 1,000,000 $ 700,000 $ 400,000
61-70 $ 700,000 $ 500,000 $ 200,000
71-75 $ 300,000 $ 200,000 $ 100,000
76-80 $ 200,000 $ 100,000 $ 50,000
(a) Spouse's Insurance Rider not available above Class D.
(b) Term policies and Term Riders not available above Class H.
Notes: (1) The above maximum limits are also the maximums on any one life
for all plans and riders combined.
(2) There are conditions where the retention may be limited, such as
in aviation, Armed Forces personnel, certain avocations, and
medical classifications.
CIVILIAN AVIATION:
PASSENGERS UNDERWRITING ACTION RETENTION
---------- ------------------- ---------
Company owned business planes
To 200 hours annually Standard $ 1,000,000
Over 200 hours annually Individual Consideration* $ 500,000
Charter Flying
To 100 hours annually Standard $ 500,000
Over 100 hours annually Individual Consideration* $ 300,000
Private business or pleasure
To 100 hours annually Standard $ 500,000
Over 100 hours annually Individual Consideration* $ 300,000
Pilots and Crew Members $ 300,000
* Require complete details of type of planes and equipment, flying terrain
and qualifications of pilots.
1
EXHIBIT I
STATE MUTUAL OF AMERICA RETENTION SCHEDULE
ARMED FORCES:
Active Duty personnel, Reserves alerted, National Guard alerted, ROTC final
college year, West Point Cadets, Annapolis Midshipmen, Air Force and Cost
Guard Academy Cadets
AGES OFFICERS ENLISTED PERSONNEL*
---- -------- -------------------
24 and Under $ 100,000 $ 50,000
25 and Over $ 150,000 $ 100,000
(Submarine Service, Hazardous
Special Services, Paratroopers
And Airborne Infantry are not
Eligible.)
Doctors, Dentists, Allied Specialists $ 200,000 ----------
Civilian participants in Reserve
Programs entering on active duty
for up to six months only, with
remaining military service obligation
to be completed in Ready Reserve
All Ages $ 150,000 $ 100,000
*Enlisted Personnel (Pay Grades E-1 through E-3 are not eligible).
CORONARY HISTORY: When a combination Table and Flat Extra rating is
necessary.
AGES RETENTION
---- ---------
60 and Under $ 250,000
61-70 $ 100,000
71-80 $ 50,000
WAIVER OF PREMIUM DISABILITY AND ACCIDENTAL DEATH BENEFITS
Fully retained
2
EXHIBIT II
EL II ANNUAL
MALE CURRENT MORTALITY CHARGES PER $1,000 NET AMOUNT AT RISK*
RATES VARY BY ATTAINED AGE ONLY. THE RATES ARE SET BY THE COMPANY
AND ARE SUBJECT TO CHANGE AT ANY TIME.
ATT'D AGE REGULAR NONSMOKER
--------- ------- ---------
0 3.14
5 .81
10 .62
15 1.06
18 1.73 1.37
19 1.81 1.42
20 1.85 1.44
21 1.87 1.43
22 1.84 1.40
23 1.81 1.38
24 1.77 1.34
25 1.71 1.30
26 1.67 1.27
27 1.65 1.25
28 1.63 1.23
29 1.65 1.23
30 1.68 1.23
31 1.74 1.26
32 1.79 1.28
33 1.88 1.33
34 1.99 1.38
35 2.11 1.45
36 2.25 1.53
37 2.44 1.64
38 2.64 1.76
39 2.88 1.89
40 3.16 2.02
41 3.48 2.18
42 3.81 2.33
43 4.19 2.52
44 4.58 2.71
45 5.03 2.93
46 5.45 3.12
47 5.90 3.34
48 6.36 3.56
49 6.89 3.80
50 7.44 4.06
51 8.13 4.37
52 8.89 4.72
53 9.77 5.11
54 10.76 5.55
EXHIBIT II
ATT'D AGE REGULAR NONSMOKER
--------- ------- ---------
55 11.61 6.04
56 12.70 6.63
57 13.53 7.26
58 14.4x 7.35
59 15.3x 8.52
60 16.33 9.25
61 17.85 10.05
62 19.52 10.94
63 21.41 11.86
64 23.49 13.09
65 25.76 14.31
66 27.71 15.59
67 29.72 16.95
68 31.73 18.38
69 33.82 19.33
70 36.11 21.53
71 38.61 23.47
72 41.44 25.62
73 44.60 28.05
74 47.99 30.73
75 51.68 33.53
76 57.31 37.17
77 63.1x 41.02
78 62.25 45.02
79 75.64 49.29
80 82.61 54.00
81 90.34 59.27
82 99.05 65.26
83 108.86 72.06
84 119.51 79.55
85 130.75 87.57
90 208.75 132.32
* RATES SHOWN ARE TWELVE TIMES THE MONTHLY RATE ADDITIONAL RATES
ARE AVAILABLE UPON REQUEST.
EXHIBIT II
EL II ANNUAL
FEMALE CURRENT MORTALITY CHARGES PER $1,000 NET AMOUNT AT RISK*
RATES VARY BY ATTAINED AGE ONLY. THE RATES ARE SET BY
THE COMPANY AND ARE SUBJECT TO CHANGE AT ANY TIME.
ATT'D AGE REGULAR NONSMOKER
--------- ------- ---------
0 2.46
5 .72
10 .65
15 .81
18 1.04 .92
19 1.07 .94
20 1.10 .97
21 1.12 .97
22 1.15 .98
23 1.17 .98
24 1.21 .99
25 1.23 .99
26 1.27 1.02
27 1.31 1.04
28 1.35 1.06
29 1.41 1.09
30 1.47 1.13
31 1.53 1.15
32 1.60 1.18
33 1.66 1.21
34 1.77 1.26
35 1.84 1.30
36 1.99 1.38
37 2.17 1.48
38 2.37 1.60
39 2.60 1.71
40 2.85 1.83
41 3.10 1.99
42 3.32 2.15
43 3.53 2.31
44 3.73 2.47
45 3.93 2.63
46 4.12 2.79
47 4.31 2.97
48 4.50 3.16
49 4.69 3.35
50 4.92 3.58
51 5.26 3.82
52 5.66 4.09
53 6.12 4.41
54 6.59 4.73
EXHIBIT II
EL II ANNUAL
ATT'D AGE REGULAR NONSMOKER
--------- ------- ---------
55 7.08 5.07
56 7.67 5.47
57 8.25 5.86
58 8.82 6.19
59 9.41 6.53
60 10.06 6.94
61 10.75 7.42
62 11.58 8.03
63 12.71 8.80
64 13.97 9.71
65 15.38 10.68
66 16.78 11.81
67 18.24 12.96
68 19.57 14.11
69 21.05 16.34
70 22.64 16.77
71 24.69 18.22
72 27.24 20.01
73 30.36 22.19
74 34.01 24.74
75 38.09 27.58
76 43.04 30.64
77 48.36 33.85
78 54.03 37.22
79 60.22 40.82
80 67.20 44.83
81 75.22 50.24
82 84.52 56.52
83 95.26 63.81
84 108.11 71.96
85 121.40 80.98
90 196.77 125.40
* RATES SHOWN ARE TWELVE TIMES THE MONTHLY RATE ADDITIONAL RATES ARE
AVAILABLE UPON REQUEST.
EXHIBIT II
EL II ANNUAL
CURRENT: MORTALITY CHARGES PER $1,000 NET AMOUNT AT RISKS
RATES VARY BY ATTAINED AGE ONLY.
ATT'D ATT'D
AGE REGULAR NONSMOKER AGE
----- ------- --------- -----
16 1.17 16
17 1.29 17
18 1.67 1.33 18
19 1.73 1.37 19
20 1.77 1.39 20
21 1.79 1.38 21
22 1.77 1.36 22
23 1.74 1.34 23
24 1.71 1.31 24
25 1.66 1.27 25
26 1.62 1.24 26
27 1.61 1.23 27
28 1.60 1.22 28
29 1.67 1.22 29
30 1.66 1.22 30
31 1.72 1.25 31
32 1.77 1.27 32
33 1.86 1.32 33
34 1.96 1.37 34
35 2.08 1.43 35
36 2.22 1.51 36
37 2.41 1.63 37
38 2.61 1.74 38
39 2.85 1.34 39
40 3.13 2.00 40
41 3.44 2.16 41
42 3.76 2.31 42
43 4.12 2.50 43
44 4.49 2.68 44
45 4.92 2.90 45
46 5.32 3.10 46
47 5.74 3.29 47
48 6.18 3.52 48
49 6.67 3.76 49
50 7.19 4.01 50
51 7.84 4.31 51
52 8.57 4.65 52
53 9.41 5.04 53
54 10.34 5.47 54
EXHIBIT II
ERL II ANNUAL
ATT'D ATT'D
AGE REGULAR NONSMOKER AGE
----- ------- --------- -----
55 11.34 5.95 55
56 12.19 6.52 56
57 13.04 7.12 57
58 13.91 7.68 58
59 14.79 8.31 59
60 15.74 9.02 60
61 17.14 9.79 61
62 19.72 10.66 62
63 20.54 11.64 63
64 22.53 12.74 64
65 24.72 13.95 65
66 26.62 15.21 66
67 28.57 16.56 67
68 30.51 17.95 68
69 32.54 19.43 69
70 34.76 21.10 70
71 37.21 22.64 71
72 40.01 25.06 72
73 43.16 27.46 73
74 46.58 30.13 74
75 50.31 32.94 75
76 55.87 36.52 76
77 61.70 40.30 77
78 67.72 44.24 78
79 74.09 48.44 79
80 81.06 53.03 80
81 88.82 56.36 81
82 97.59 64.38 82
83 107.48 71.23 83
84 118.36 73.79 84
85 129.80 86.90 85
86 143.53 95.29 86
87 157.66 104.0x 87
88 173.53 112.87 88
89 189.99 122.05 89
90 207.56 131.63 90
91 226.36 141.79 91
92 247.11 152.90 92
93 273.14 165.47 93
94 306.68 181.64 94
* RATES SHOWN ARE TWELVE TIMES THE MONTHLY RATE. ADJUSTMENTS MUST BE
MADE FOR A ____ OTHER THAN 1.
GENERAL AMERICAN LIFE INSURANCE COMPANY
B-400 Nonsmoker Select Rates
(Age Nearest Birthday)
POLICY YEAR
OMITTED (6 PAGES)
ADDENDUM TO THE
AUTOMATIC REINSURANCE AGREEMENT DATED July 1, 1986
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA, Worcester, Massachusetts
and
GENERAL AMERICAN LIFE INSURANCE COMPANY, St .Louis, Missouri
This Addendum is Effective January 1, 1987
ARTICLE I AUTOMATIC COVERAGE
A. All automatic reinsurance required by STATE MUTUAL on increases in
amount on the Exceptional Life I and Exceptional Retirement Life I plans
shall be ceded on a quota-share basis and 33 1/3% of all such amounts so
ceded shall be automatically assumed by GENERAL AMERICAN in accordance with
the terms of this Addendum.
B. Coverage ceded under the terms of this Addendum shall include coverage
originating from issues reinsured by STATE MUTUAL for their subsidiary SMA
Life Assurance Company.
C. Coverage ceded under this Addendum may involve reinsurance of
increases on Exceptional Life I and Exceptional Retirement Life I plans in
states where the Exceptional Life II and Exceptional Retirement Life II
plans covered by the basic agreement are not yet approved.
D. For each risk on which reinsurance is ceded, STATE MUTUAL shall retain
its full retention as indicated in Exhibit I of the basic agreement, either
on currently issued or previously issued coverage.
E. If STATE MUTUAL retains less than its maximum retention, as shown in
Exhibit I of the basic agreement, GENERAL AMERICAN shall accept
automatically reinsurance in an amount not to exceed the amount retained by
STATE MUTUAL on the current increase. This type of automatic reinsurance
will be known as special automatic.
F. Whenever STATE MUTUAL is already on the risk for its maximum retention
under policies previously issued, STATE MUTUAL may automatically cede
additional amounts to GENERAL AMERICAN, subject to the terms of this
Addendum.
G. STATE MUTUAL agrees not to automatically bind GENERAL AMERICAN when:
1. The amount to be ceded to GENERAL AMERICAN exceeds one and one half
times the maximum retention limits, as shown in Exhibit I of the basic
agreement, on any one life.
2
2. The risk is a jumbo risk defined as one in which the sum of
insurance already in force and the amount currently applied for in
STATE MUTUAL and in all other companies exceeds $10,000,000.
ARTICLE II FACULTATIVE PROVISIONS
A. STATE MUTUAL shall have the option to cede any case facultatively
which it does not wish to cede automatically or which it may not cede
automatically under the provisions of Article I.
B. On facultative submissions GENERAL AMERICAN shall have no liability
until it has communicated its final approval to STATE MUTUAL.
C. In no case will GENERAL AMERICAN'S offer on facultative submissions be
deemed to be still open after 120 days have elapsed from the date of
GENERAL AMERICAN'S offer to participate in the risk. Non-receipt of the
cession or additional information within the 120 days will result in
GENERAL AMERICAN closing its file and giving written notice of such action.
ARTICLE III REINSURANCE PREMIUMS
A. The basis for figuring the premiums payable for this coverage shall be
determined according to the amount reinsured per insured life as follows:
FIRST $3,000,000 REINSURANCE PER INSURED LIFE
INCREASES ON EXCEPTIONAL LIFE I
The consideration payable for this coverage shall be based
on 58% of the rates as shown in Exhibit IV. For substandard table
ratings, the rates will be increased by 25% per table.
Flat extra premiums will receive the allowances as described
in Article IV A of the basic agreement except that instead of 20%,
10% will be used.
INCREASES ON EXCEPTIONAL RETIREMENT LIFE I
The consideration payable for this coverage shall be based
on 65% of the rates as shown in Exhibit V. For substandard table
ratings, the rates will be increased by 25% per table.
Flat extra premiums will receive the allowances as described
in Article IV A of the basic agreement except that instead of 20%,
10% will be used.
REINSURED AMOUNTS IN EXCESS OF $3,000,000 PER INSURED LIFE
Premium for life insurance of amounts in excess of
$3,000,000 per insured life will be based on the rates shown in
Exhibit III (Amended).
Flat extra premiums will receive the allowances as described
in Article IV A of the basic agreement.
2
B. Premium taxes paid by STATE MUTUAL on the reinsured business shall be
reimbursed to STATE MUTUAL to the extent that GENERAL AMERICAN is not
required to pay such taxes directly.
C. For technical reasons the life insurance rates cannot be guaranteed
for more than one year. On all reinsurance ceded at these rates, however,
GENERAL AMERICAN anticipates continuing to accept premiums on the basis of
the rates as described in Paragraph A of this Article.
ARTICLE IV PREMIUM ACCOUNTING ARRANGEMENT
A. STATE MUTUAL shall self-administer the records for the coverage ceded
to GENERAL AMERICAN under the terms of this Addendum.
B. The accounting method shall be as described in Article V of the basic
agreement.
ARTICLE V APPLICABILITY OF ARTICLES
This Addendum is part of the
Automatic Reinsurance Agreement to which it is
attached and all provisions of that Agreement shall apply except those
specifically modified by this Addendum.
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate as
follows:
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------------- -----------------------------
Title: Assistant Vice President Title: Vice President and Actuary
---------------------------- --------------------------
Date: May 18, 1987
-----------------------------
GENERAL AMERICAN LIFE INSURANCE COMPANY
By: /s/ By: /s/
-------------------------------- -----------------------------
Title: Reinsurance Treaty Specialist Title: Vice President
---------------------------- --------------------------
Date: April 1, 1987
-----------------------------
3
EXHIBIT IV
EL I Increases
Omitted (16 pages)
477-0-5
AMENDMENT TO THE
AUTOMATIC REINSURANCE AGREEMENT DATED July 1, 1986
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA, Worcester, Massachusetts
and
GENERAL AMERICAN LIFE INSURANCE COMPANY, St .Louis, Missouri
This Amendment is Effective February 1, 1987
I. REINSURANCE PREMIUMS
Effective for policies issued on and after January 1, 1987, Exhibit III is
hereby replaced by the attached Exhibit III (Amended) and premiums for life
reinsurance of amounts in excess of $3,000,000 per insured life will be
based on the rates shown in Exhibit III (Amended).
II. All provisions of the
Automatic Reinsurance Agreement not amended herein
remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate as
follows:
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
-------------------------------- -----------------------------
Title: Assistant Vice President
& Associate Actuary Title: Vice President and Actuary
Date: May 18, 1987
------------------------------
GENERAL AMERICAN LIFE INSURANCE COMPANY
By: /s/ By: /s/
-------------------------------- -----------------------------
Title: Reinsurance Treaty Specialist Title: Vice President
Date: April 1, 1987
------------------------------
EXHIBIT III (AMENDED)
GENERAL AMERICAN LIFE INSURANCE COMPANY
RP-84 Nonsmoker Select Rates
(Ages Nearest Birthday)
POLICY YEAR
OMITTED (3 pages)
EXHIBIT III (AMENDED)
RP-84 Select Rates
1. For substandard table ratings, increase rates by 22 1/2% per table.
2. Female risk premiums are based on the male rates with a four-year age
setback for ages 15 and above; for ages 11 through 14, the female
rates are the same as the male age 10 rate, and for ages 0 through 10,
the female rates are the same as the male rates.
GENERAL AMERICAN LIFE INSURANCE COMPANY
RP-84 Smoker Select Rates
(Age Nearest Birthday)
POLICY YEAR
OMMITTED (3 pages)
EXHIBIT III (AMENDED)
RP-84 Select Rates
1. For substandard table ratings, increase rates by 22 1/2% per table.
2. Female risk premiums are based on the male rates with a four-year age
setback for ages 15 and above; for ages 11 through 14, the female
rates are the same as the male age 10 rate, and for ages 0 through 10,
the female rates are the same as the male rates.
AMENDMENT TO THE
AUTOMATIC REINSURANCE AGREEMENT DATED July 1, 1986
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA, Worcester, Massachusetts
and
GENERAL AMERICAN LIFE INSURANCE COMPANY, St .Louis, Missouri
This Amendment is Effective November 2, 1987
I. ADDITIONAL OF VARI-EXCEPTIONAL LIFE PLAN
This Agreement is hereby amended through the addition of the
Vari-Exceptional Life plan which shall be covered by it effective November
2, 1987.
Paragraph A of Article I is hereby amended to include Vari-Exceptional Life
in the list of plans covered and this list shall now read as follows:
EXCEPTIONAL LIFE II
EXCEPTIONAL RETIREMENT LIFE II
VARI-EXCEPTIONAL LIFE
The premiums payable for coverage of the Vari-Exceptional Life plan shall
be as described in Article IV of this Agreement, with male and female
mortality charges being the same as those shown for ELII and Unisex
mortality charges being the same as those shown for ERII in Exhibit II.
II. All provisions of the
Automatic Reinsurance Agreement not amended herein
remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate as
follows:
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Attest by: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------ --------------------------------
Title: Assistant Vice President Title: Vice President and Actuary
& Associate Actuary
Date: December 17, 1987
-----------------------------
GENERAL AMERICAN LIFE INSURANCE COMPANY
Attest by: /s/ By: /s/
------------------------ --------------------------------
Title: Assistant Vice President Title: Vice President
& Associate Actuary
Date: December 7, 1987
-----------------------------
General American Letter/Memo
(OMMITTED) (10 pages)
AMENDMENT TO THE
AUTOMATIC REINSURANCE AGREEMENT DATED July 1, 1986
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA, Worcester, Massachusetts
and
GENERAL AMERICAN LIFE INSURANCE COMPANY, St .Louis, Missouri
This Amendment is Effective February 1, 1988
I. RETENTION LIMITS
Effective with policies dated February 1, 1988 and thereafter, the
Exhibit I schedule of Retention Limits is hereby replaced by the
attached Exhibit I (Amended 2-1-88).
II. All provisions of the
Automatic Reinsurance Agreement not amended herein
remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate as
follows:
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
--------------------- ---------------------------
Title: AVP & Actuary Title: VP & Actuary
---------------------- ------------------------
Date: February 26, 1991
-----------------------
GENERAL AMERICAN LIFE INSURANCE COMPANY
By: /s/ By: /s/
------------------------- ---------------------------
Title: Sales Vice President Title: Executive Vice President
---------------------- ------------------------
Date: February 5, 1991
-----------------------
STATE MUTUAL OF AMERICA RETENTION SCHEDULE
LIFE
STANDARD RISKS.
SPECIAL CLASSES SPECIAL CLASSES SPECIAL CLASSES
A,B,C, & D, AND E, F, & H, AND J, L, & P, AND
FLAT EXTRAS OF FLAT EXTRAS OF FLAT EXTRAS OF
AGES $10.00 OR LESS(a) $10.01-$20.00(b) $20.01 AND OVER
----- ----------------- ---------------- ---------------
0 $ 400,000 $ 200,000 $ 100,000
1-17 $ 800,000 $ 600,000 $ 200,000
18-60 $ 1,000,000 $ 700,000 $ 400,000
61-70 $ 700,000 $ 500,000 $ 200,000
71-75 $ 300,000 $ 200,000 $ 100,000
76-80 $ 100,000 $ 100,000 $ 50,000
(a) Spouse's Insurance Rider not available above Class D.
(b) Term policies and Term Riders not available above Class H.
Notes: (1) The above maximum limits are also the maximums on the any one life
for all plans and riders combined.
(2) There are conditions where the retention may be limited, such as in
aviation, Armed Forces personnel, certain avocations, and medical
classifications.
(3) The minimum size reinsurance case will be $25,000.
CIVILIAN AVIATION:
PASSENGERS UNDERWRITING ACTION RETENTION
---------- ------------------- -----------
Company owned business planes
To 200 hours annually Standard $ 1,000,000
Over 200hours annually Individual Consideration* $ 500,000
Charter Flying
To 100 hours annually Standard $ 500,000
Over 100 hours annually Individual Consideration* $ 300,000
Private Business or pleasure
To 100 hours annually Standard $ 500,000
Over 100 hours annually Individual Consideration* $ 300,000
Pilots and Crew Members $ 300,000
* Require complete details of type of planes and equipment, flying terrain and
qualifications of pilots.
1
EXHIBIT I (Amended 0-0-00)
XXXXX XXXXXX XX XXXXXXX RETENTION SCHEDULE
ARMED FORCES:
Active Duty personnel. Reserves alerted. National Guard alerted. ROTC final
college year, West Point Cadets, Annapolis Midshipman, Air Force and Coast
Guard Academy Cadets.
AGES OFFICERS ENLISTED PERSONNEL
---- -------- ------------------
24 and Under $ 100,000 $ 50,000
25 and Over $ 150,000 $ 100,000
(Submarine Service, Hazardous
Special Services, Paratroopers
and Airborne Infantry are not
eligible.)
Doctors, Dentists, Allied Specialists $ 200,000 ---------
Civilian participants in Reserve
Programs entering on active duty for
up to six months only, with remaining
Military service obligation to be
completed in Ready Reserve
All Ages $ 150,000 $ 100,000
*Enlisted Personnel (Pay Grades E-1 through E-3 are not eligible).
CORONARY HISTORY: When a combination Table and Flat Extra rating is necessary.
AGES RETENTION
---- ---------
60 and under $ 300,000
61-70 $ 150,000
71-80 $ 50,000
WAIVER OF PREMIUM DISABILITY AND ACCIDENTAL DEATH BENEFITS
Fully retained
2
477-1-1
AMENDMENT TO THE
ADDENDUM EFFECTIVE January 1, 1987 TO THE
AUTOMATIC REINSURANCE AGREEMENT DATED July 1, 1986
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA, Worcester, Massachusetts
and
GENERAL AMERICAN LIFE INSURANCE COMPANY, St. Louis, Missouri
This Amendment is Effective January 1, 1991
I. BINDING LIMIT
Effective with policies dated January 1, 1991 and thereafter, Paragraph G
of Article I is hereby amended to read as follows:
"G. STATE MUTUAL agrees not to automatically bind GENERAL AMERICAN when:
1. The amount to be ceded to GENERAL AMERICAN exceeds two times the
maximum retention limits, as shown in Exhibit I of the basic
agreement, on any one life.
2. The risk is a jumbo risk defined as one on which the sum of
insurance already in force and the amount currently applied for in
STATE MUTUAL and in all other companies exceeds $10,000,000."
II. All provisions of the Addendum not amended herein remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate as
follows:
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------ ---------------------------
Title: AVP & Actuary Title: VP & Actuary
--------------------- ------------------------
Date: February 26, 1991
----------------------
GENERAL AMERICAN LIFE INSURANCE COMPANY
By: /s/ By: /s/
------------------------ ---------------------------
Title: Sales Vice President Title: Executive Vice President
--------------------- ------------------------
Date: February 5, 1991
----------------------
477-0-7
AMENDMENT TO THE
AUTOMATIC REINSURANCE AGREEMENT DATED July 1, 1986
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA, Worcester, Massachusetts
and
GENERAL AMERICAN LIFE INSURANCE COMPANY, St. Louis, Missouri
This Amendment is Effective October 1, 1991
I. ADDITIONAL OF VARI-EXCEPTIONAL LIFE 91 PLAN
This Agreement is hereby amended through the addition of the
Vari-Exceptional Life 91 plan which shall be covered by it effective
October 1, 1991.
Paragraph A of Article I is hereby amended to include Vari-Exceptional Life
91 in the list of plans covered and this list shall now read as follows:
EXCEPTIONAL LIFE II
EXCEPTIONAL RETIREMENT LIFE II
VARI-EXCEPTIONAL LIFE
EXCEPTIONAL LIFE PLUS
VARI-EXCEPTIONAL LIFE 91
The premiums payable for coverage of the Vari-Exceptional Life 91 plan
shall be as described in Article IV of this Agreement, with male and female
mortality charges being the same as those shown for ELII and Unisex
mortality charges being the same as those shown for ERLII in Exhibit II.
II. All provisions of the Automatic Reinsurance Agreement not amended herein
remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate as
follows:
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
-------------------------- -----------------------------
Title: AVP & Actuary Title: VP & Actuary
----------------------- --------------------------
Date: February 26, 1991
------------------------
GENERAL AMERICAN LIFE INSURANCE COMPANY
By: /s/ By: /s/
-------------------------- -----------------------------
Title: Sales Vice President Title: Executive Vice President
----------------------- --------------------------
Date: February 5, 1991
------------------------
477-0-9
AMENDMENT TO THE
AUTOMATIC REINSURANCE AGREEMENT Effective July 1, 1986
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Worcester, Massachusetts
and
GENERAL AMERICAN LIFE INSURANCE COMPANY
St. Louis, Missouri
This Amendment is Effective January 1, 1993
I. RETENTION LIMITS
Effective for policies dated January 1, 1993, and thereafter, the Exhibit I
schedule of Retention Limits is hereby replaced by the attached Exhibit I
(Rev. 1-1-93).
II. REVISED PREMIUMS AND PAY PERCENTS
Effective for policies dated January 1, 1993, and thereafter, the Exhibit
III (Amended) rates are hereby replaced by the attached Exhibit III (Rev.
1-1-93) rates for life reinsurance of amounts in excess of $3,000,000 per
insured life.
Effective for policies dated January 1, 1993, and thereafter, the premiums
and pay percents applicable to the Exceptional Life plans and increase on
these plans, as covered under this Agreement, are hereby revised. The rates
in Exhibit II, IV and V are hereby replaced by the attached Exhibit VI.
Article IV, Paragraph A, of this Agreement is hereby revised as follows to
document the above premium and pay percent changes:
"ARTICLE IV REINSURANCE PREMIUMS
A. This basis for figuring the premiums payable for this coverage
shall be determined according to the amount reinsured per insured life
as follows:
FIRST $3,000,000 REINSURED PER INSURED LIFE
EXCEPTIONAL LIFE PLANS
The consideration payable for this coverage shall be based on
the Annual Mortality Charges shown in Exhibit VI, multiplied by
the following pay percentages:
YEARS
-----
CLASS 1 2-10 11+
----- - ---- ---
Nonsmoker 0% 58% 72%
Smoker 0% 62% 75%
For substandard table ratings, the rates will be increased by
25% per table.
The premium will be increased by any flat extra premium
charged the insured on the face amount initially reinsured, less
total allowances in the amount of 100% of any first year permanent
(payable 6 years or more) extra or 20% of any first year temporary
flat extra premium, and 20% of any renewal flat extra premium.
Increases in the death benefit that are underwritten in
accordance with the CEDING COMPANY'S usual underwriting standards
for individually selected risks for new issues will be treated as
new business and the percentages will recommence at the first
year.
INCREASES ON EXCEPTIONAL LIFE I & EXCEPTIONAL RETIREMENT LIFE I
The consideration payable for this coverage shall be based on
the Annual Mortality Charges as shown in Exhibit VI, multiplied by
the following pay percentages:
YEARS
-----
CLASS 1 2-10 11+
----- - ---- ---
Nonsmoker 0% 58% 72%
Smoker 0% 62% 75%
For substandard table ratings, the rates will be increased by
25% per table.
The premium will be increased by any flat extra premium
charged the insured on the face amount initially reinsured, less
total allowances in the amount of 100% of any first year permanent
(payable 6 years or more) extra or 10% of any first year temporary
flat extra premium, and 10% of any renewal flat extra premium.
REINSURED AMOUNTS IN EXCESS OF $3,000,000 PER INSURED LIFE
Premiums for life reinsurance of amounts in excess of
$3,000,000 per insured life will be based on the annual rates
shown in Exhibit III (Rev. 1-1-93).
For substandard table ratings, the rates will be increased by
25% per table.
The premium will be increased by any flat extra premium
charged the insured on the face amount initially reinsured, less
total allowances in the amount of 100% of any first year permanent
(payable 6 years or more) extra or 20% of any first year temporary
flat extra premium, and 20% of any renewal flat extra premium."
III. REVISED PARTICIPATION PERCENTAGE
Effective for policies dated January 1, 1993, and thereafter, GENEAL
AMERICAN'S percentage of participation in each risk ceded shall be changed
from 33 1/3% to 10%. Article I, Paragraph A, of this Agreement is hereby
revised as follows to document this change:
"ARTICLE I AUTOMATIC COVERAGE
A. All automatic reinsurance required by the CEDING COMPANY on
conventionally underwritten risks under the policy plans listed below
shall be ceded on a quota-share basis and 10% of all such amounts so
ceded shall be automatically assumed by GENERAL AMERICAN in accordance
with the terms of this Agreement:
EXCEPTIONAL LIFE II
EXCEPTIONAL RETIREMENT LIFE II
VARI-EXCEPTIONAL LIFE
EXCEPTIONAL LIFE PLUS
VARI-EXCEPTIONAL LIFE 91
INCREASES ON EXCEPTIONAL LIFE I
INCREASES ON EXCEPTIONAL RETIREMENT LIFE I"
IV. All provisions of the Automatic Reinsurance Agreement not amended
herein remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate as
follows:
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------ ----------------------------
Title: AVP & Actuary Title: VP & Actuary
--------------------- -------------------------
Date: August 6, 1993
----------------------
GENERAL AMERICAN LIFE INSURANCE COMPANY
By: /s/ By: /s/
------------------------ ----------------------------
Title: Vice President, Sales Title: Executive Vice President
--------------------- ------------------------
Date: 7/30/93
----------------------
Letter to Xxxxxxx X. Xxxxxxx
(Omitted) (2 pages)
EXHIBIT I
STATE MUTUAL OF AMERICA RETENTION SCHEDULE
Effective January 1, 1993
LIFE
STANDARD RISKS,
SPECIAL CLASSES SPECIAL CLASSES
A THROUGH H AND J,L & P, AND
FLAT EXTRAS OF FLAT EXTRAS OF
AGES $20.00 OR LESS $20.01 AND OVER
---- --------------- ---------------
0 $ 500,000 $ 250,000
1-60 2,000,000 1,000,000
61-70 1,000,000 500,000
71-80 500,000 250,000
Notes: (1) The above maximum limits are also the maximums on any one
life for all plans and riders combined.
(2) The minimum size reinsurance case will be $50,001.
AVIATION
Any situation involving aviation will use a $500,000 retention.
WAIVER OF PREMIUM DISABILITY & ACCIDENTAL DEATH BENEFITS
Fully retained
EXHIBIT III (REV. 1-1-93)
GENERAL AMERICAN LIFE INSURANCE COMPANY
N-500 Smoker Rates
Age Nearest Birthday
(Omitted) (3 pages)
EXHIBIT III (REV. 1-1-93)
1. For substandard table ratings, increase rates by 25% per table.
2. Female risk premiums are based on the male rates with a four-year
age setback for ages 15 and above; for ages 11 through 14, the
female rates are the same as the male age 10 rates, and for ages 0
through 10, the female rates are the same as the male rates.
EXHIBIT III (REV. 1-1-93)
GENERAL AMERICAN LIFE INSURANCE COMPANY
N-500 Nonsmoker Rates
Age Nearest Birthday
(Omitted) (3 pages)
EXHIBIT III (REV. 1-1-93)
1. For substandard table ratings, increase rates by 25% per table.
2. Female risk premiums are based on the male rates with a four-year
age setback for ages 15 and above; for ages 11 through 14, the
female rates are the same as the male age 10 rates, and for ages 0
through 10, the female rates are the same as the male rates.
State Mutual
ANNUAL MORTALITY CHARGES
EXHIBIT VI
(Omitted)(4 pages)
DAC TAX
AMENDMENT
This Amendment, effective January 1, 1991, between STATE MUTUAL LIFE ASSURANCE
COMPANY (referred t as Ceding Company; Reinsured; you, your), and GENERAL
AMERICAN LIFE INSURANCE COMPANY (referred to as General American; Reinsurer; we,
us, our) hereby amends and becomes a part of the following Reinsurance
Agreement(s).
DOC. NO. EFFECTIVE DATE DESCRIPTION
473 01-JAN-83 AUTOMATIC/FACULTATIVE AGREEMENT
474 01-AUG-83 FACULTATIVE AGREEMENT
475 01-AUG-83 FACULTATIVE AGREEMENT (SMA LIFE'S EXCEPTIONAL LIFE)
476 01-MAR-85 JX20 TREATY (DIRECT/RETRO)
477 01-JUL-86 AUTOMATIC/FACULTATIVE AGREEMENT
478 01-MAR-85 JX25 FACULTATIVE AGREEMENT
479 01-JAN-87 AUTOMATIC/FACULTATIVE AGREEMENT
480 01-JAN-87 AUTOMATIC/FAC. AGREEMENT (EXECTERMII, FLEXTERM)
648 01-MAY-89 AUTOMATIC/FACULTATIVE AGREEMENT
1. The attached DAC Tax Article, entitled Section 1.848-2(g)(8) Election, is
hereby added to the Agreement.
2. This Amendment does not alter, amend or modify the Reinsurance Agreement
other than as stated in this Amendment. It is subject to all of the terms
and conditions of the Reinsurance Agreement together with all Amendments
and Addendums.
Executed in duplicate by GENERAL AMERICAN LIFE INSURANCE COMPANY at St. Louis,
Missouri, on March 22, 1993.
By: /s/
-------------------------
Title: Executive Vice President
Executed in duplicate by STATE MUTUAL LIFE ASSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------- -----------------------
Title: AVP & Actuary Title: VP & Actuary
---------------------- --------------------
Date: (illegible)
-----------------------
DAC TAX ARTICLE
TREASURY REG. SECTION 1.848-2(g)(8) ELECTION
The Ceding Company and the Reinsurer hereby agree to the following pursuant to
Section 1.848-2(g)(8) of the Income Tax Regulations issued December 29th, 1992,
under Section 848 of the Internal Revenue Code of 1986, as amended. This
election shall be effective for the 1991 taxable year for all amounts of
consideration arising after November 14, 1991 and for all subsequent taxable
years for which this Agreement remains in effect.
1. The term "party" will refer to either the Ceding Company or the Reinsurer
as appropriate.
2. The terms used in this Article are defined by reference to Treasury
Regulation Section 1.848-2 in effect as of December 29th, 1992. The term
"net consideration' will refer to either net consideration as defined in
Treasury Reg. Section 1.848-2(f) or 'gross premium and other consideration"
as defined in Treasury Reg. Section 1.848-3(b) as appropriate.
3. The party with the net positive consideration for this Agreement for each
taxable year will capitalize specified policy acquisition expenses with
respect to this Agreement without regard to the general deductions
limitation of IRC Section 848(c)(1).
4. The Ceding Company and Reinsurer agree to exchange information pertaining
to the amount of net consideration under this Agreement each year to ensure
consistency. The Ceding Company and the Reinsurer also agree to exchange
information which may be otherwise required by the IRS.
5. The Ceding Company will submit a schedule to the Reinsurer by June 1 of
each year of its calculation of the net consideration for the proceeding
calendar year. This schedule of calculations will be accompanied by a
statement signed by an officer of the Ceding Company stating that the
Ceding Company will report such net consideration in its tax return for the
preceding calendar year.
6. The Reinsurer may contest such calculation by providing an alternative
calculation to the Ceding Company in writing within 30 days of the
Reinsurer's receipt of the Ceding Company's calculation. If the Reinsurer
does not so notify the Ceding Company, the Reinsurer will report the net
consideration as determined by the Ceding Company in the Reinsurer's tax
return for the previous calendar year.
7. If the Reinsurer contest the Ceding Company's calculation of the net
consideration, the parties will act in good faith to reach an agreement as
to the correct amount within thirty (30) days of the date the Reinsurer
submits its alternative calculation. If the Ceding Company and the
Reinsurer reach agreement on an amount of net consideration, each party
shall report such amount inn their respective tax returns for the previous
calendar year.
This Amendment, effective on the original Document Date, between STATE MUTUAL
LIFE ASSURANCE COMPANY (referred to as Ceding Company; Reinsured; you, your),
and GENERAL AMERICAN LIFE INSURANCE COMPANY (referred to as General American;
Reinsurer; we, us, our) hereby amends and becomes a part of the following
Reinsurance Agreement(s).
DOC. NO. EFFECTIVE DATE DESCRIPTION
473 01-JAN-83 AUTOMATIC/FACULTATIVE AGREEMENT
474 01-AUG-83 FACULTATIVE AGREEMENT
475 01-AUG-83 FACULTATIVE AGREEMENT (SMA LIFE'S EXCEPTIONAL LIFE)
476 01-MAR-85 JX20 TREATY (DIRECT/RETRO)
477 01-JUL-86 AUTOMATIC/FACULTATIVE AGREEMENT
478 01-MAR-85 JX25 FACULTATIVE AGREEMENT
479 01-JAN-87 AUTOMATIC/FACULTATIVE AGREEMENT
480 01-JAN-87 AUTOMATIC/FAC. AGREEMENT (EXECTERMII, FLEXTERM)
648 01-MAY-89 AUTOMATIC/FACULTATIVE AGREEMENT
1. This amendment provides that:
A. The reinsurance agreement shall constitute the entire agreement
between the parties with respect to the business being reinsured
thereunder and that there are no understandings between the parties
other than as expressed in the agreement; and
B. Any change or modification to the agreement shall be null and void
unless made by amendment to the agreement and signed by both parties.
2. This Amendment does not alter, amend or modify the Reinsurance Agreement
other than as stated in this Amendment. It is subject to all of the terms
and conditions of the Reinsurance Agreement together with all Amendments
and Addendums.
Executed in duplicate by GENERAL AMERICAN LIFE INSURANCE COMPANY at St. Louis,
Missouri, on March 22, 1993.
By: /s/
-------------------------
Title: Executive Vice President
Executed in duplicate by STATE MUTUAL LIFE ASSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------- ---------------------
Title: AVP & Actuary Title: VP & Actuary
---------------------- ------------------
Date: (illegible)
-----------------------
JULY 1, 1986 REINSURANCE AGREEMENT
AMENDMENT TO REINSURANCE AGREEMENT
between
STATE MUTUAL LIFE ASSURANCE COMPANY, WORCESTER, MASSACHUSETTS
(hereinafter referred to as "THE CEDING COMPANY")
and
GENERAL AMERICAN LIFE INSURANCE COMPANY, ST. LOUIS, MISSOURI
(hereinafter referred to as "GENERAL AMERICAN")
This Amendment is Effective August 1, 1993
Effective August 1, 1993, all agreements which cede or retrocede reinsurance
from THE CEDING COMPANY to GENERAL AMERICAN are amended to replace GENERAL
AMERICAN with Saint Louis Reinsurance Company. On and after August 1, 1993, all
past, present and future rights and responsibilities of GENERAL AMERICAN under
these agreements are assigned to Saint Louis Reinsurance Company.
This amendment does not alter, amend or modify the Reinsurance Agreement other
than as stated in this Amendment. It is subject to all of the terms and
conditions of the Reinsurance Agreement together with all Amendments and
supplements.
IN WITNESS WHEREOF, all parties have executed this Amendment in triplicate.
GENERAL AMERICAN LIFE INSURANCE COMPANY STATE MUTUAL LIFE ASSURANCE COMPANY
By: /s/ By: /s/ Xxxxxx X. Xxxxx, Xx.
----------------------------- ------------------------
Title: Executive Vice President Title: AVP & Actuary
---------------------
Date: July 20, 1993 Date: July 26, 1993
----------------------
SAINT LOUIS REINSURANCE COMPANY
By: /s/
-----------------------------
Title: President
Date: July 20, 1993
477-2-0
ADDENDUM TO THE
AUTOMATIC REINSURANCE AGREEMENT Effective July 1, 1986
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Worcester, Massachusetts
(hereinafter called the CEDING COMPANY)
and
SAINT LOUIS REINSURANCE COMPANY
St. Louis, Missouri
(hereinafter called SAINT LOUIS RE)
This Addendum is Effective July 1, 1993
I. ADDITION OF THE ELPLUS 93 AND VEL93 PLANS
Effective July 1, 1993, reinsurance required by the CEDING COMPANY on the
policy plans listed below will be assumed by SAINT LOUIS RE under the terms
of this Agreement:
ELPLUS 93 (FORM #1019-93)
VEL93 (FORM #1018-93)
Article I, Paragraph A, of this Agreement is hereby revised as follows to
document the addition of the above plans:
477-2-0
"ARTICLE I AUTOMATIC COVERAGE
A. All automatic reinsurance required by the CEDING COMPANY on
conventionally underwritten risks under the policy plans listed
below shall be ceded on a quota-share basis and 10% of all such
amounts so ceded shall be automatically assumed by SAINT LOUIS RE in
accordance with the terms of this Agreement:
ELPLUS (FORM #1019-93)
EXCEPTIONAL LIFE II
EXCEPTIONAL LIFE PLUS
EXCEPTIONAL RETIREMENT LIFE II
VARI-EXCEPTIONAL LIFE
VARI-EXCEPTIONAL LIFE 91
VEL93 (FORM #1018-93)
INCREASES ON EXCEPTIONAL LIFE I
INCREASES ON EXCEPTIONAL RETIREMENT LIFE I"
II. All provisions of the Automatic Reinsurance Agreement not amended herein
remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Addendum in duplicate s
follows:
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------- ---------------------------
Title: AVP & Actuary Title: VP & Actuary
---------------------- ------------------------
Date: November 15, 1993
-----------------------
SAINT LOUIS REINSURANCE COMPANY
By: /s/ By: /s/
------------------------- ---------------------------
Title: President Title: Executive Vice President
---------------------- ------------------------
Date: (illegible)
-----------------------
477-0-11
AMENDMENT TO THE
AUTOMATIC REINSURANCE AGREEMENT Effective July 1, 1986
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Worcester, Massachusetts
(hereinafter called the CEDING COMPANY)
and
SAINT LOUIS REINSURANCE COMPANY
St. Louis, Missouri
(hereinafter called SAINT LOUIS RE)
This Amendment is Effective January 1, 1993
I. INCREASED MINIMUM IN-FORCE NET AMOUNT AT RISK AT RENEWAL
Effective January 1, 1993, the minimum in-force net amount at risk at
renewal shall be increased to $25,001.
Article X, Paragraph G., of this Agreement is hereby revised to read as
follows:
"G. Whenever the initial amount of existing reinsurance under this
agreement would reduce to $25,000, or less, because of recapture
eligibility or reduction in coverage, that reinsurance shall be wholly
recaptured."
II. SPECIAL AUTOMATIC
Effective with policies dated January 1, 1993 and thereafter, the special
automatic provision of this Agreement shall no longer apply. Paragraph C,
of Article I is hereby deleted.
III. BINDING LIMIT
Effective with policies dated January 1, 1993 and thereafter, Paragraph E
of Article I is hereby amended to read as follows:
"E. The CEDING COMPANY agrees not to automatically bind SAINT LOUIS RE
when:
1. The amount to be ceded to SAINT LOUIS RE exceeds one times the
maximum retention limits, as shown in Exhibit I (Rev. 1-1-93), on
any one life.
2. The risk is a jumbo risk defined as one on which the sum of
insurance already in force and the amount currently applied for in
the CEDING COMPANY and in all other companies exceeds
$10,000,000."
IV. All provisions of the Automatic Reinsurance Agreement not amended herein
remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate as
follows:
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------- ---------------------------
Title: AVP & Actuary Title: VP & Actuary
---------------------- ------------------------
Date: December 15, 1993
-----------------------
SAINT LOUIS REINSURANCE COMPANY
By: /s/ By: /s/
------------------------- ---------------------------
Title: President Title: Executive Vice President
---------------------- ------------------------
Date: December 2, 1993
-----------------------
477-1-2
AMENDMENT TO THE
ADDENDUM Effective January 1, 1987 TO THE
AUTOMATIC REINSURANCE AGREEMENT Effective July 1, 1986
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Worcester, Massachusetts
(hereinafter called STATE MUTUAL)
and
SAINT LOUIS REINSURANCE COMPANY
St. Louis, Missouri
(hereinafter called SAINT LOUIS RE)
This Amendment is Effective January 1, 1993
I. SPECIAL AUTOMATIC
Effective with policies dated January 1, 1993 and thereafter, the special
automatic provision of this Addendum shall no longer apply. Paragraph E of
Article I is hereby deleted.
II. BINDING LIMIT
Effective with policies dated January 1, 1993 and thereafter, Paragraph G
of Article I is hereby amended to read as follows:
"G. STATE MUTUAL agrees not to automatically bind SAINT LOUIS RE when:
1. The amount to be ceded to SAINT LOUIS RE exceeds one times the
maximum retention limits, as shown in Exhibit I (Rev. 1-1-93) of the
basic agreement, on any one life.
2. The risk is a jumbo risk defined as one on which the sum of insurance
already in force and the amount currently applied for in STATE MUTUAL
and in all other companies exceeds $10,000,000."
III. All provisions of the Addendum not amended herein remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate as
follows:
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------- ---------------------------
Title: AVP & Actuary Title: VP & Actuary
---------------------- ------------------------
Date: December 15, 199
-----------------------
SAINT LOUIS REINSURANCE COMPANY
By: /s/ By: /s/
------------------------- ---------------------------
Title: President Title: Executive Vice President
---------------------- ------------------------
Date: December 2, 1993
-----------------------
477-2-1
AMENDMENT TO THE
ADDENDUM DATED July 1, 1993 TO THE
AUTOMATIC REINSURANCE AGREEMENT Effective July 1, 1986
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Worcester, Massachusetts
and
SAINT LOUIS REINSURANCE COMPANY, St. Louis, Missouri
This Amendment is Effective April 1, 1994
I. NEW YORK BUSINESS PREVIOUSLY ISSUED BY SMA LIFE
Effective for business issued on and after April 1, 1994, all business
previously issued in New York by SMA Life Assurance Company and retroceded
to SAINT LOUIS RE by STATE MUTUAL will now be issued by STATE MUTUAL and
ceded directly to SAINT LOUIS RE under the terms of this Addendum and the
Agreement to which it is attached.
II. All provisions of the Addendum and Automatic Reinsurance Agreement not
amended herein remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate as
follows:
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------- --------------------------
Title: AVP & Actuary Title: VP & Actuary
---------------------- -----------------------
Date: April 27, 1994
-----------------------
SAINT LOUIS REINSURANCE COMPANY
By: /s/ By: /s/
------------------------- --------------------------
Title: Exec. V.P., Operations Title: Vice President
---------------------- -----------------------
Date: 4-13-94
-----------------------
4770-13
AMENDMENT TO THE
AUTOMATIC REINSURANCE AGREEMENT DATED July 1, 1986
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Worcester, Massachusetts
and
SAINT LOUIS REINSURANCE COMPANY, St. Louis, Missouri
This Amendment is Effective September 1, 1989
I. RATES BASIS - Policy DEN50005 - Xxxxx Xxxx
The premiums payable for the entire $3,300,000 reinsured amount at risk on
Policy DEN50005 (converted from Policy D0000030) on the life of Xxxxx Xxxx
(d.o.b. 12-2-41) will be on the basis as described in Article IV for the
First $3,000,000 Reinsured Per Insured Life.
II. All provisions of the Automatic Reinsurance Agreement not amended herein
remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate as
follows:
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------- -----------------------------
Title: AVP & Actuary Title: VP & Actuary
---------------------- --------------------------
Date: June 22, 1994
-----------------------
SAINT LOUIS REINSURANCE COMPANY
By: /s/ By: /s/
------------------------- -----------------------------
Title: Senior Vice President Title: Executive VP Sales & Mktg.
---------------------- --------------------------
Date: 6-9-94
-----------------------
477-3-0
ADDENDUM TO THE
AUTOMATIC REINSURANCE AGREEMENT DATED July 1, 1986
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Worcester, Massachusetts
and
SAINT LOUIS REINSURANCE COMPANY, St. Louis, Missouri
This Amendment is Effective May 1, 1995
I. ADDITION OF THE SELECT LIFE PLAN (FORM #1027-95)
Effective May 1, 1995, reinsurance required by the CEDING COMPANY on the
Variable Universal Life plan listed below will be assumed by SAINT LOUIS RE
under the terms of this Agreement:
SELECT LIFE PLAN (FORM #1027-95)
Article I, Paragraph A, of this Agreement is hereby revised as follows to
document the addition of the above plan:
"ARTICLE I AUTOMATIC COVERAGE
A. All automatic reinsurance required by the CEDING COMPANY on
conventionally underwritten risks under the policy plan listed below
shall be ceded on a quota-share basis and 10% of all such amounts so
ceded shall be automatically assumed by SAINT LOUIS RE in accordance
with the terms of this Agreement:
ELPLUS 93 (FORM #1019-93)
EXCEPTIONAL LIFE II
EXCEPTIONAL LIFE PLUS
EXCEPTIONAL RETIREMENT LIFE II
VARI-EXCEPTIONAL LIFE
VARI-EXCEPTIONAL LIFE 91
VEL93 (FORM #1018-93)
INCREASES ON EXCEPTIONAL LIFE I
INCREASES ON EXCEPTIONAL RETIREMENT LIFE I
SELECT LIFE (FORM #1027-95)"
II. REINSURANCE PREMIUMS
Article IV, Paragraph A, of this Agreement is hereby revised as follows to
document the premium basis applicable to the Select Life plan:
"ARTICLE IV REINSURANCE PREMIUMS
A. The basis for figuring the premiums payable for this coverage shall
be determined according to the amount reinsured per insured life as
follows:
FIRST $3,000,000 REINSURED PER INSURED LIFE
EXCEPTIONAL LIFE PLANS AND SELECT LIFE PLAN
The consideration payable for this coverage shall be based on
the Annual Mortality Charges shown in Exhibit VI, multiplied by
the following pay percentages:
YEARS
-----
CLASS 1 2-10 11+
----- - ---- ---
Nonsmoker 0% 58% 72%
Smoker 0% 62% 75%
For substandard table ratings, the rates will be increased by
25% per table.
The premium will be increased by any flat extra premium
charged the insured on the face amount initially reinsured, less
total allowances in the amount of 100% of any first year permanent
(payable 6 years or more) extra or 20% of any first year temporary
flat extra premium, and 20% of any renewal flat extra premium.
Increases in the death benefit that are underwritten in
accordance with the CEDING Company's usual underwriting standards
for individually selected risks for new issues will be treated as
new business and the percentages will recommence at the first
year.
INCREASES ON EXCEPTIONAL LIFE I & EXCEPTIONAL RETIREMENT LIFE I
The consideration payable for this coverage shall be based on
the Annual Mortality Charges as shown in Exhibit VI, multiplied by
the following pay percentages:
YEARS
-----
CLASS 1 2-10 11+
----- - ---- ---
Nonsmoker 0% 58% 72%
Smoker 0% 62% 75%
40
For substandard table ratings, the rates will be increased by
25% per table.
The premium will be increased by any flat extra premium
charged the insured on the face amount initially reinsured, less
total allowances in the amount of 100% of any first year permanent
(payable 6 years or more) extra or 10% of any first year temporary
flat extra premium, and 10% of any renewal flat extra premium.
REINSURED AMOUNTS IN EXCESS OF $3,000,000 PER INSURED LIFE
Premiums for life reinsurance of amounts in excess of
$3,000,000 per insured life will be based on the annual rates
shown in Exhibit III (Rev. 1-1-93).
For substandard table ratings, the rates will be increased by
25% per table.
The premium will be increased by any flat extra premium
charged the insured on the face amount initially reinsured, less
total allowances in the amount of 100% of any first year permanent
(payable 6 years or more) extra or 20% of any first year temporary
flat extra premium, and 20% of any renewal flat extra premium.
III. All provisions of the Automatic Reinsurance Agreement not amended herein
remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Addendum in duplicate as
follows:
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------- ---------------------------
Title: AVP & Actuary Title: VP & Actuary
---------------------- ------------------------
Date: May 11, 1995
-----------------------
SAINT LOUIS REINSURANCE COMPANY
By: /s/ By: /s/
------------------------- ---------------------------
Title: Vice President Title: Executive Vice President
---------------------- ------------------------
Date: 5-3-95
-----------------------
41
477-0-14
AMENDMENT TO THE
AUTOMATIC REINSURANCE AGREEMENT Dated August 1, 1986
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA, Worcester, Massachusetts
(Ceding Company)
and
RGA REINSURANCE COMPANY, St. Louis, Missouri
I. NAME CHANGE FOR CEDING COMPANY - Effective October 11, 1995
As a result of demutualization effective October 11, 1995, the name of the
Ceding Company has been changed from State Mutual Life Assurance Company of
America to First Allmerica Financial Life Insurance Company. This Automatic
Agreement and the Amendments and Addendums to it are hereby amended to
reflect this name change. All provisions contained in these documents now
apply to business ceded by First Allmerica Life Insurance Company to RGA
Reinsurance Company.
II. NAME CHANGE FOR SUBSIDIARY OF CEDING COMPANY - Effective October 1, 1995
The name of the subsidiary whose business is reinsured and ceded by the
Ceding Company to RGA Reinsurance Company under this Agreement has been
changed effective October 1, 1995 from SMA Life Assurance Company to
Allmerica Financial Life Insurance and Annuity Company and this Agreement
is hereby amended to reflect this name change.
III. All provisions of the Automatic Reinsurance Agreement not amended herein
remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate as
follows:
FIRST ALLMERICA FINANCIAL LIFE INSURANCE COMPANY
(Formerly State Mutual Life Assurance Company of America)
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------- -----------------------
Title: AVP& Actuary Title: VP & Actuary
---------------------- --------------------
Date: 2/12/96
-----------------------
RGA REINSURANCE COMPANY
By: /s/ By: /s/
------------------------- -----------------------
Title: Vice President Title: Executive Director
---------------------- --------------------
Date: 1-26-96
-----------------------
AMENDMENT TO THE
REINSURANCE AGREEMENT
between
STATE MUTUAL LIFE ASSURANCE COMPANY, Worcester, Massachusetts
(hereinafter called "RGA Re")
and
RGA REINSURANCE COMPANY, St. Louis, Missouri
(hereinafter called "RGA Re")
This Amendments is Effective the Original Date of the Reinsurance Agreement.
I. CLAIMS
Effective the Original Date of all Reinsurance Agreements containing
Facultative Provisions, the following paragraph is hereby added to the
Claims provision:
"In the event RGA RE does not receive notification of acceptance from
the CEDING COMPANY prior to the death occurring, then RGA RE will
apply the CEDING COMPANY'S tie breaker rules as described in
Attachment A to this Amendment."
II. All provisions of the Reinsurance Agreement not specifically modified
herein remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate as
follows:
STATE MUTUAL LIFE ASSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------- ----------------------
Title: AVP& Actuary Title: VP & Actuary
---------------------- -------------------
Date: January 18, 1996
-----------------------
RGA REINSURANCE COMPANY
By: /s/ By: /s/
------------------------- ----------------------
Title: Vice President Title: Exec. Director
---------------------- -------------------
Date: 5-6-96
-----------------------
Attachment A
Facultative Tie Breaker Rules
(Companies shown below are ranked from the lowest reinsurance cost to the
highest reinsurance cost. If same number within a column, cost is equal.)
UNIVERSAL LIFE EXECTERM II TEN YR. TERM
(INCLUDES VEL AND & STATE MUTUAL
INHEIRITAGE AND ADVANTAGE) FLEXTERM BUSINESS
----------- -------------- ----------- ---------------
1. Conn. General (K) 1. Life Re (G) 1. Gen. American (D) 1. Life Re (G)
1. Gen. American (D) 2. Conn. General (K) 2. Life Re (G) 2. Gen. American (D)
1. Lincoln (X) 3. Cologne (B) 3. Conn. General (K) 3. Lincoln (X)
4. Lincoln (X) 4. Lincoln (X) 4. Cologne (B)
5. Gen. Amer. (D) 5. Conn. General (K)
000-00-00
ADDENDUM
to the
AUTOMATIC AND FACULTATIVE REINSURANCE AGREEMENT Dated July 1, 1986
between
FIRST ALLMERICA FINANCIAL LIFE INSURANCE COMPANY, Worcester, Massachusetts
and
RGA REINSURANCE COMPANY, St. Louis, Missouri
This Addendum is Effective February 1, 1997
I. ADDITION OF SINGLE PREMIUM VARIABLE UNIVERSAL LIFE
Effective February 1, 1997, reinsurance required by the CEDING COMPANY on
the policy plan listed below will be assumed by RGA RE under the terms of
this Agreement:
SINGLE PREMIUM VARIABLE UNIVERSAL LIFE (Form 1030-96)
For this plan, the first year net amount at risk must equal or exceed
$50,001 for any reinsurance to be ceded.
Article I, Paragraph A of this Agreement is hereby revised as follows to
document the addition of the above plan:
"ARTICLE I AUTOMATIC COVERAGE
A. All automatic reinsurance required by the CEDING COMPANY on
conventionally underwritten risks under the policy plan listed below shall
be ceded on a quota-share basis and 10% of all such amounts so ceded shall
be automatically assumed by RGA RE in accordance with the terms of this
Agreement:
ELPLUS 93 (Form #1019-93)
EXCEPTIONAL LIFE II
EXCEPTIONAL LIFE PLUS
EXCEPTIONAL RETIREMENT LIFE II
VARI-EXCEPTIONAL IFE
VARI-EXCEPTIONAL LIFE 91
VEL93 (Form #1018-93)
INCREASES ON EXCEPTIONAL LIFE I
INCREASES ON EXCEPTIONAL RETIREMENT LIFE I
SELECT LIFE (Form #1027-95)
SINGLE PREMIUM VARIABLE UNIVERSAL LIFE (Form #1030-96)"
II. REINSURANCE PREMIUMS
Article IV, Paragraph A, of this Agreement is hereby revised as follows to
document the premium basis applicable to the single Premium Variable
Universal Life plan:
"ARTICLE IV REINSURANCE
A. The basis for figuring the premiums payable for this coverage shall
be determined according to the amount reinsured per insured life as
follows:
FIRST $3,000,000 REINSURED PER INSURED LIFE
EXCEPTIONAL LIFE PLANS, SELECT LIFE PLAN, AND SINGLE PREMIUM
VARIABLE UNIVERSAL LIFE PLAN
The consideration payable for this coverage shall be based on the
Annual Mortality Charges shown in Exhibit VI, multiplied by the
following pay percentages:
YEARS
------
CLASS 1 2 - 10 11 +
----- - ------ ----
Nonsmoker 0% 58% 72%
Smoker 0% 62% 75%
For substandard table rating, the rates will be increased by 25%
per table.
The premium will be increased by any flat extra premium charged
the insured on the face amount initially reinsured, less total
allowances in the amount of 100% of any first year permanent
(payable 6 years of more) extra or 20% of any first year temporary
flat extra premium, and 20% of any renewal flat extra premium.
Increases in the death benefit that are underwritten in accordance
with the CEDING COMPANY'S usual underwriting standards for
individually selected risks for new issues will be treated as new
business and the percentages will recommence at the first year.
INCREASES ON EXCEPTIONAL LIFE I & EXCEPTIONAL RETIREMENT LIFE I
The consideration payable for this coverage shall be based on the
Annual Mortality Charges as shown in Exhibit VI, multiplied by the
following pay percentages:
YEARS
------
CLASS 1 2 - 10 11 +
----- - ------ ----
Nonsmoker 0% 58% 72%
Smoker 0% 62% 75%
2
For substandard table ratings, the rates will be increased by 25%
per table.
The premium will be increased by any flat extra premium charged
the insured on the face amount initially reinsured, less total
allowances in the amount of 100% of any first year permanent
(payable 6 years or more) extra of 10% of any first year temporary
flat extra premium, and 10% of any renewal flat extra premium.
REINSURED AMOUNTS IN EXCESS OF $3,000,000 PER INSURED LIFE
Premiums for life reinsurance of amounts in excess of $3,000,000
per insured life will be based on the annual rates sown in Exhibit
II (Rev. 1/1/93).
For substandard table ratings, the rates will be increased by 25%
per table.
The premium will be increased by any flat extra premium charged
the insured on the face amount initially reinsured, less total
allowances in the amount of 100% of any first year permanent
(payable 6 years or more) extra or 20% of any first year temporary
flat extra premium, and 20% of any renewal flat extra premium."
III. ADDITION OF UNDERWRITING GUIDELINES
Effective February 2, 1997, Underwriting Guidelines are hereby added as
Article XVII.
IV. All provisions of the Automatic and Facultative Reinsurance Agreement not
specifically modified herein remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Addendum in duplicate as
follows:
FIRST ALLMERICA FINANCIAL LIFE INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------- --------------------
Title: AVP & Actuary Title: VP & Actuary
---------------------- -----------------
Date: April 28, 1997 Date: April 28, 1997
----------------------- ------------------
RGA REINSURANCE COMPANY
By: /s/
-------------------------
Title: Vice President
----------------------
Date: 4-22-97
-----------------------
3
ARTICLE XVII
SPVUL Underwriting Processes
Simplified Underwriting
(Based on Age and Face Amount)
1. An applicant must pay guideline single premium to qualify - See Exhibit I.
2. An applicant completes the Simplified Underwriting questions (two
questions).
3. If the applicant answers NO to all questions, the applicant skips all other
underwriting questions.
Allmerica will request an MIB.
a. If the MIB is okay, Allmerica will issued the contract as soon as the
payment is received and all forms are complete.
b. If the MIB is not okay, Allmerica will contact the applicant directly
for additional information. Based on information obtained from the
applicant, Allmerica will decide what additional actions will be
needed, i.e., contacting the applicant's personal physician, a medical
test relating to the specific item and, in rare cases, a complete
medical exam.
4. If the applicant answers YES to any of the questions, they will also
complete the Additional Underwriting Information Section (Question #10).
Allmerica will request an MIB.
Allmerica will decide what additional actions will be needed, i.e.,
contacting the applicant's personal physician, a medical test relating
to the specific item and, in rare cases, a complete medical exam.
ARTICLE XVII
SPVUL UNDERWRITING PROCESSES
Basic - Full Underwriting
(Based on Age and Face Amount)
1. An applicant completes the Basic Underwriting questions (five questions).
Allmerica will request an MIB.
2. If the applicant answers YES to the "medical" questions, they will also
complete the Additional Underwriting Information Section.
3. If the applicant answers YES to any of the other questions, Allmerica will
send the applicant the proper Allmerica form(s).
4. Allmerica will contact Paramedical firm to order a medical exam or other
normal age and amount requirements on the applicant.
ARTICLE XVII
SIMPLIFIED UNDERWRITING
(SPVUL)
AGE SINGLE PREMIUM (MAX)
------- ------------------------
0 - 24 Simplified Not Available
25 - 45 $ 25,000
45 - 55 $ 30,000
56 - 65 $ 50,000
66 - 80 $ 100,000
81 + Simplified Not Available
000-00-00
AMENDMENT
to the
AUTOMATIC REINSURANCE AGREEMENT Dated July 1, 1986
between
FIRST ALLMERICA FINANCIAL LIFE INSURANCE COMPANY, Worcester, Massachusetts
(hereinafter called the "CEDING COMPANY")
and
RGA REINSURANCE COMPANY, St. Louis, Missouri
(hereinafter called the "REINSURER")
This Amendment is Effective August 1, 1997
I. ISSUE AGE LIMIT EXTENDED TO AGE 85
Effective August 1, 1997, Exhibit A, Retention Schedule (Rev. 1/1/93) is
hereby revised and replaced by the attached Exhibit A, Retention Schedule
(Rev. 8/1/97) which now shows the extended issue age limit.
III. All provisions of the Automatic Reinsurance Agreement not specifically
modified herein remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate as
follows:
FIRST ALLMERICA FINANCIAL LIFE INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------- -------------------
Title: AVP & Actuary Title: VP & Actuary
---------------------- ----------------
Date: 8/19/97 Date: 8/19/97
----------------------- -----------------
RGA REINSURANCE COMPANY
By: /s/
-------------------------
Title: Vice President
----------------------
Date: 8/12/97
-----------------------
1
EXHIBIT A
FIRST ALLMERICA FINANCIAL RETENTION SCHEDULE
Effective August 1, 1997
LIFE
STANDARD RISKS,
SPECIAL CLASSES A THROUGH H AND SPECIAL CLASSES J., L & P, AND
AGES FLAT EXTRAS OF $20.00 OR LESS FLAT EXTRAS OF $20.01 AND OVER
---- ----------------------------- ------------------------------
0 $ 500,000 $ 250,000
1 - 60 2,000,000 1,000,000
61 - 70 1,000,000 500,000
71 - 80 500,000 250,000
81 - 85 500,000 (up to Table F)
Notes: (1) The above maximum limits are also the maximums on any one life for
all plans and riders combined.
(2) The minimum size reinsurance case will be $50,001.
AVIATION
Any situation involving aviation will use a $500,000 retention.
WAIVER OF PREMIUM DISABILITY & ACCIDENTAL DEATH BENEFITS
Fully retained.
2
