AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM
REINSURANCE AGREEMENT
between
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
(NAIC # 71153)
(FID # 00-0000000)
and
REVIOS REINSURANCE U.S. INC.
(FORMERLY XXXXXXX GLOBAL LIFE REINSURANCE COMPANY)
(NAIC # 87017)
(FID # 00-0000000)
Effective: January 1, 2002
ARTICLES
I. Parties to the Agreement 3
II. Reinsurance Coverage 3
III. Liability 5
IV. Notification of Reinsurance 6
V. Reinsurance Premiums 6
VI. Reserves 8
VII. Oversights 9
VIII. Reductions, Terminations, and Changes 9
IX. Increase in Retention 11
X. Reinstatement 11
XI. Expenses 12
XII. Claims 12
XIII. Extra-Contractual Damages 15
XIV. Inspection of Records 15
XV. DAC Tax - Section 1.848-2 (g)(8) Election 15
XVI. Insolvency 16
XVII. Offset 17
XVII. Arbitration 17
XIX. Termination 19
XX. General Provisions 19
XXI. Confidentiality 21
XXII. Notices and Communications 21
XXII. Effective Date 22
XXIV. Execution 22
SCHEDULES
A. Plans Covered under This Agreement 23
B. Basis of Reinsurance 25
EXHIBITS
I. Reinsurance Premium Calculation 26
II. Retention, Binding, and Issue Limits 27
III. LS Limits & Retention -- LS Worksheet 28
IV. Xxxxx Program 29
V. Director's Charitable Award Program (DCAP) 30
VI. Annual per 1000 YRT Reinsurance Rates 32
ALL SCHEDULES AND EXHIBITS ATTACHED WILL BE CONSIDERED PART OF THIS REINSURANCE
AGREEMENT.
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
2
ARTICLE I
PARTIES TO THE AGREEMENT
This Agreement is between Hartford Life and Annuity Insurance Company (referred
to as the Ceding Company), and Revios Reinsurance U.S. Inc (referred to as the
Reinsurer).
The acceptance of risks under this Agreement will create no right or legal
relationship between the Reinsurer and the insured owner or beneficiary of any
insurance policy or contract of the Ceding Company. This Agreement will be
binding upon the Ceding Company and the Reinsurer and their respective
successors and assignees.
ARTICLE II
REINSURANCE COVERAGE
Reinsurance under this Agreement will apply to insurance issued by the Ceding
Company on the Plans of Insurance shown in Schedule A. Such Plans of Insurance
shall be reinsured with the Reinsurer on an automatic basis, subject to the
requirements set forth in Section A below, or on a facultative basis, subject to
the requirements set forth in Section B below, or on a facultative obligatory
basis, subject to the requirements set forth in Section C below. The
specifications for all reinsurance under this Agreement are provided in Schedule
B.
A. Requirements for Automatic Reinsurance
For risks which meet the requirements for Automatic Reinsurance as set forth
below, the Reinsurer will participate in a reinsurance pool whereby the
Reinsurer will automatically reinsure a portion of the insurance risks as
indicated in Schedule B. The requirements for Automatic Reinsurance are as
follows:
1. Each life must be a resident of the United States or Canada at the time of
application.
2. Each life must be underwritten according to the Ceding Company's standard
underwriting practices and guidelines. Any and all modifications to the Ceding
Company's underwriting practices and guidelines that impact the reinsurance
under this Agreement, will be as stringent as those in place at the time of
entering into this Agreement, unless agreed upon by the Reinsurer. The Reinsurer
reserves the right to terminate this Agreement for new business after discussion
with the Ceding Company and (90) ninety days written notice if it deems such
modifications to be less conservative than those previously in place. Any life
falling into the category of special underwriting programs will be excluded from
this Agreement unless previously agreed to by the Reinsurer via a written
amendment.
3. Any risk offered on a facultative basis other than for size by the Ceding
Company to the Reinsurer or any other company will not qualify for Automatic
Reinsurance under this Agreement for the same risk and same life.
4. The minimum issue age will be 18 and the maximum issue age will be 90.
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
3
5. As shown in Exhibits II and III, the mortality rating on each life must not
exceed Table P. However, one life may be uninsurable if the other life meets the
preceding requirements.
6. The total face amount of insurance for the Plans of Insurance in Schedule A
to be reinsured on an automatic basis must not exceed the Automatic Issue Limits
and Automatic Binding Limits in Exhibits II and III.
7. The total amount of insurance issued and applied for in all companies on
each risk must not exceed the jumbo limits as stated in Exhibits II and III.
8. The Ceding Company shall retain its maximum limit of retention for the age
and risk classification of each life, as shown in Exhibits II and III, either on
previous insurance or insurance currently applied for.
B. Requirements for Facultative Reinsurance
1. If the requirements for Automatic Reinsurance are met, but the Ceding
Company prefers to apply for Facultative Reinsurance with the Reinsurer, or if
the requirements for Automatic Reinsurance are not met and the Ceding Company
applies for Facultative Reinsurance with the Reinsurer, then prior to issue the
Ceding Company must submit to the Reinsurer all the documents, facsimiles, or
sufficient evidence agreed upon between the Ceding Company and the Reinsurer
relating to the insurability of each life for Facultative Reinsurance.
2.
a. For applications for Facultative Reinsurance, the Ceding Company
will send copies of all of the papers or facsimiles relating to the
insurability of each life to the Reinsurer, with the exception of
situations where one life is uninsurable. In those situations, only
the papers or facsimiles on the insurable life will be sent. After
the Reinsurer has examined the request, the Reinsurer will promptly
notify the Ceding Company of the underwriting offer subject to
additional requirements or the final underwriting offer. The final
underwriting offer on the risk will automatically terminate upon the
earlier of the withdrawal of the application or 120 days from the
date of the final offer, unless coverage is accepted or put in place
earlier.
b. For applications for Facultative Reinsurance other than for size
(i.e., facultative for medical reasons), the Ceding Company will send
copies of all of the papers or facsimiles relating to the
insurability of each life to the Reinsurer, with the exception of
situations where one life is standard or preferred, only the papers
or facsimiles on the non-standard or non-preferred life will be sent.
After the Reinsurer has examined the request, the Reinsurer will
promptly notify the Ceding Company of the underwriting offer subject
to additional requirements or the final underwriting offer. The final
underwriting offer on the risk will automatically terminate upon the
earlier of the withdrawal of the application or 120 days from the
date of the final offer, unless coverage is accepted or put in place
earlier.
3. Notwithstanding the above, if the requirements for Automatic Reinsurance are
met except that the face amount of reinsurance applied for is greater than the
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
4
Automatic Issue Limit, but does not exceed the Automatic Processing Limit, then
the Ceding Company will submit to the Lead Reinsurer (as designated in Schedule
B) all papers relating to the insurability of each life. The Lead Reinsurer
shall review the papers to determine if the risk should be reinsured by the
pool, and, if so, on what basis. The Lead Reinsurer shall provide the Ceding
Company with a response within 24 hours of receipt of the papers. Approval of
the Lead Reinsurer shall be binding on all other pool members. This process
shall be known as Automatic Processing and subject to the limitations in
Exhibits II and III.
C. Requirements for Facultative Obligatory Reinsurance
The Reinsurer agrees to a facultative obligatory arrangement whereby the Ceding
Company may cede a risk to the Reinsurer and the Reinsurer agrees to accept the
risk using the Ceding Company's underwriting evaluation, subject to the
following conditions:
1. The requirements for Automatic Reinsurance specified in Article II must be
met with one exception. This exception is that the total amount of insurance
issued and applied for in all companies on each risk has exceeded the jumbo
limits set forth in Exhibits II and III.
2. The arrangement is available on all policy forms covered under this
Reinsurance Agreement.
3. The ceded risk is subject to the Facultative Obligatory Automatic Binding
Limits and the Facultative Obligatory Automatic Issue Limits, as stated in
Exhibits II and III. However, to the extent that the Reinsurer has already
filled its available capacity on the risk, the Reinsurer may reduce the provided
capacity by notifying the Ceding Company. In addition, the Reinsurer may choose
to provide Facultative Obligatory capacity greater than as specified in Schedule
B.
4. The Reinsurer will have a reasonable amount of time, but not to exceed two
(2) business days, to respond to the Ceding Company's request for a Facultative
Obligatory risk.
D. Basis of Reinsurance
Reinsurance under this Agreement will be on the basis as stated in Schedule B.
E. Policy Forms
When requested, the Ceding Company will furnish the Reinsurer with a copy of
each policy, rider, rate book, and applicable sales or marketing material that
applies to the life insurance reinsured hereunder.
ARTICLE III
LIABILITY
A. the Reinsurer's liability for Automatic and Facultative Obligatory
Reinsurance will begin simultaneously with the Ceding Company's liability.
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
5
B. The Reinsurer's liability for Facultative Reinsurance coverage will begin
simultaneously with the Ceding Company's liability once the Reinsurer has
accepted the application for Facultative Reinsurance and the Ceding Company has
accepted the offer.
C. In no event shall the reinsurance be in force and binding if the issuance
and delivery of such insurance constituted the doing of business in a
jurisdiction in which the Ceding Company was not properly licensed.
D. The Reinsurer's liability for reinsurance on each risk will terminate when
the Ceding Company's liability terminates.
E. The Reinsurer will not be liable for benefits paid under the Ceding
Company's conditional receipt or temporary insurance agreement unless all the
conditions for the conditional receipt or temporary insurance agreement are met.
The Reinsurer's liability under the Ceding Company's conditional receipt or
temporary insurance agreement is limited to the lesser of (1) or (2) below:
1. The Automatic Binding limits with the Reinsurer shown in Exhibits II and
III, or
2. The amount for which the Ceding Company is liable, less its retention shown
in Exhibits II and III
The pre-issue liability applies provided that the Ceding Company has followed
its normal cash-with-application procedures for such coverage. After a policy
has been issued, no reinsurance benefits are payable under this pre-issue
coverage provision.
F. The liability of each pool member shall be separate and not joint with the
other pool members.
G. The Reinsurer shall establish reserves on the Reinsurer's portion of the
policy on the reserve basis specified in Article VI.
ARTICLE IV
NOTIFICATION OF REINSURANCE
A. For Automatic and Facultative Reinsurance, the Ceding Company will notify
the Reinsurer on the monthly statement as described in Article V.
B. When reinsurance is reduced or changed, the Ceding Company will notify the
Reinsurer on the monthly accounting statement.
ARTICLE V
REINSURANCE PREMIUMS
A. Computation
Premiums for reinsurance under this Agreement will be computed as described in
Exhibit I.
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
6
B. Premium Accounting
1. Payment of Reinsurance Premiums
For Automatic and Facultative Reinsurance, following the close of each calendar
month, the Ceding Company will send the Reinsurer a statement and a listing of
new business, changes, and terminations. The Reinsurer will refund to the Ceding
Company all unearned Annual YRT Reinsurance Premiums not including policy fees,
less applicable allowances, arising from reductions, terminations and changes as
described in Article VIII.
Annual YRT Reinsurance Premiums, as calculated in Exhibit I, based on the
Reinsured Net Amount at Risk, as defined in Schedule B, are paid annual in
advance each month for those policies renewing during that month. If a net
reinsurance premium balance is payable to the Reinsurer, the Ceding Company will
forward this balance within (30) thirty days after the close of each month.
If a net reinsurance premium balance is payable to the Ceding Company, the
balance due will be subtracted from the reinsurance premium payable by the
Ceding Company for the current month. The Reinsurer shall pay any remaining
balance due the Ceding Company within (30) thirty days after the Ceding Company
submits the statement.
2. Termination Because of Non-Payment of Premium
If undisputed reinsurance premiums are delinquent, the Reinsurer has the right
to terminate the reinsurance risks on those policies listed on the delinquent
monthly statement by giving the Ceding Company (90) ninety days' advance written
notice. If the delinquent premiums have not been paid as of the close of the
(90) ninety-day period, the Reinsurer's liability will terminate for the risks
described in the delinquency notice.
Regardless of the termination, the Ceding Company will continue to be liable to
the Reinsurer for all unpaid reinsurance premiums earned up to the date of
termination.
3. Reinstatement of a Delinquent Statement
Subject to the approval of the Reinsurer, the Ceding Company may reinstate the
terminated risks within (60) sixty days after the effective date of termination
by paying the unpaid reinsurance premiums for the risks in force prior to the
termination. However, the Reinsurer will not be liable for any claim incurred
between the date of termination and reinstatement. The effective date of
reinstatement will be the date the required back premiums are received.
4. Currency
The reinsurance premiums and benefits payable under this Agreement will be
payable in the lawful money of the United States.
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
7
5. Detailed Listing
Before the end of the first quarter, the Ceding Company will send the Reinsurer
a detailed listing of all reinsurance in force as of the close of the
immediately preceding calendar year.
6. Guaranteed Rates
Although the Reinsurer anticipates continuing to accept reinsurance premiums at
the current level, the Reinsurer reserves the right to increase the reinsurance
premiums but only when the Ceding Company increases the cost of insurance rates
to the policy owner. The increase to the reinsurance premium on a given policy
shall be no more than proportional to the increase to the policy owners' cost of
insurance rates.
7. Overpayment of Premium
If the Ceding Company overpays a reinsurance premium and the Reinsurer accepts
the overpayment, the Reinsurer's acceptance will not constitute nor create a
reinsurance liability nor result in any additional reinsurance. Instead, the
Reinsurer will be liable to the Ceding Company for a credit in the amount of the
overpayment.
8. Underpayment of Premium
If the Ceding Company fails to make a full premium payment for a policy or
policies reinsured hereunder, due to an oversight defined in Article VII, the
amount of reinsurance coverage provided by the Reinsurer shall not be reduced.
However, once the underpayment is discovered, the Ceding Company will be
required to pay to the Reinsurer the difference between the full premium amount
and the amount actually paid, without interest. If payment or the full premium
is not made within (60) sixty days after the discovery of the underpayment, the
underpayment shall be treated as a failure to pay premiums and subject to the
conditions of Section B.2, above.
9. Reporting
The Ceding Company will provide the Reinsurer the following reports monthly in
an electronic format:
Billing Statement
In force Exhibit
Policy Exhibit.
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
8
ARTICLE VI
RESERVES
A. Statutory Reserves for the Mortality Risk of the Policy
B. Representations
The Reinsurer represents to the Ceding Company that the Reinsurer is properly
licensed or accredited so that the Ceding Company may claim statutory reserve
credit on its financial statements filed in all states in which the Ceding
Company is licensed to transact insurance business. In the event that as a
result of a change in the Reinsurer's licensing or accreditation status, the
Ceding Company must obtain security for statutory reserve credits taken with
respect to this reinsurance agreement, the Reinsurer will establish a trust or
letter of credit in a form which meets all applicable standards or law and
regulation to enable the Ceding Company to claim such reserve credit on its
statutory statements. The Reinsurer will bear the expense of establishing any
trusts or letter of credit with respect to this provision.
ARTICLE VII
OVERSIGHTS
If there is an unintentional oversight, misunderstanding, delay or error in the
administration of this Agreement by the Ceding Company or the Reinsurer, it can
be corrected provided the correction takes place within a reasonable time after
the oversight, misunderstanding, delay, or error is first discovered. Both the
Ceding Company and the Reinsurer will be restored to the position they would
have occupied had the oversight or misunderstanding not occurred. Should it not
be possible to restore both parties to such a position, the Ceding Company and
the Reinsurer shall negotiate in good faith to equitably apportion any resulting
liabilities and expenses.
ARTICLE VIII
REDUCTIONS, TERMINATIONS AND CHANGES
A. Replacement or Change
If there is a contractual change, the insurance will continue to be reinsured
with the Reinsurer at joint life point-in-scale rates.
Exchanges from one last survivor plan reinsured under this Agreement to a
different last survivor plan reinsured under this Agreement will be reinsured at
joint life point-in-scale rates. Exchanges from one last survivor plan reinsured
under this Agreement with the Last Survivor Exchange Option Rider (24) or Twenty
Four Month Exchange Rider to two single life plans will be reinsured at single
life point-in-scale rates. An exchange is a new policy replacing an existing
policy where the new policy is not fully underwritten.
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
9
B. Increases or Decreases
1. If the policy face amount of a risk reinsured automatically under this
Agreement increases and:
a. The increase is subject to new underwriting evidence, then the
provisions of Article II, Section A, shall apply to the increase in
reinsurance.
b. The increase is not subject to new underwriting evidence, the
Reinsurer will accept the increase in reinsurance at point-in-scale
rates but not to exceed the Automatic Binding Limit.
2. If the policy face amount increases, the Ceding Company's retention will be
filled first, and then any remaining risk of the increase will be ceded to the
Reinsurer as of the effective date of the increase. If the policy face amount is
reduced, the reinsurance will be reduced first, thereby maintaining the Ceding
Company's retention.
3. In the event of a reduction in the face amount of a policy, which was ceded
facultatively, the Reinsurer's percentage of the reduced face amount shall be
the same percentage as set at issue.
4. A request to increase the face amount of policies that are reinsured on a
facultative basis will be submitted to the Reinsurer for acceptance.
C. Reduction in Retained Coverage
If any portion of the aggregate insurance retained by the Ceding Company on a
risk reduces or terminates, the Ceding Company will recalculate its retention on
any remaining risk(s) inforce with the intent of holding the appropriate
retention under each applicable reinsurance agreement.
The retention limit, which was in effect at the time that each remaining risk
was issued, will be used. The Ceding Company will not be required to retain an
amount in excess of its regular retention limit for the age, mortality rating,
and risk classification at the time of issue for any policy. The Ceding Company
will first recalculate the retention on the policy(ies) having the same
mortality rating as the terminated policy(ies). Order of recalculation will
secondarily be determined by policy effective date, oldest first.
D. Multiple Reinsurers
If a risk is shared by more than one reinsurer, the Reinsurer's percentage of
any increased or reduced reinsurance will be the same as its initial percentage
of the reinsurance for that risk.
E. Termination
If the policy for a risk reinsured under this Agreement is terminated, the
reinsurance for the risk involved will be terminated on the effective date of
termination.
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
10
F. Mortality Rating
On Facultative Reinsurance, if the Ceding Company wishes to reduce the mortality
rating, this reduction will be subject to the Reinsurer's approval. On Automatic
Reinsurance, if the Ceding Company wishes to reduce the mortality rating, the
Reinsurer will accept this reduction.
ARTICLE IX
INCREASE IN RETENTION
A. If the Ceding Company should increase the retention limits as listed in
Exhibits II and III, prompt written notice of the increase must be given to the
Reinsurer.
B. In the event of an increase in retention, the Ceding Company will have the
option of recapturing the reinsurance up to the increased retention under this
Agreement. The Ceding Company may exercise its option to recapture by giving
written notice to the Reinsurer within (90) ninety days after the effective date
of the increase.
C. If the Ceding Company exercises its option to recapture, then:
1. The Ceding Company must reduce the reinsurance on each risk on which the
Ceding Company retained the maximum retention limit for the age and mortality
rating that was in effect at the time the reinsurance was ceded to the
Reinsurer.
2. No recapture will be made to reinsurance on a risk if (a) the Ceding Company
retained a special retention limit less than the maximum retention limit for the
age and mortality rating in effect at the time the reinsurance was ceded to the
Reinsurer, or if (b) the Ceding Company did not retain insurance on the risk.
3. The Ceding Company must increase its total amount of insurance on a risk up
to the new retention limit by reducing the reinsurance. If a risk is shared by
more than one reinsurer, the Reinsurer's percentage of the reduced reinsurance
will be the same as the initial reinsurance on the risk.
4. The reduction in reinsurance will become effective on the next annual
premium anniversary after the individual policy has been inforce for at least
ten (10) years.
5. If more than one policy per life is eligible for recapture, then the
eligible policies may be recaptured beginning with the policy with the earliest
issue date and continuing in chronological order according to the remaining
policies' issue dates.
ARTICLE X
REINSTATEMENT
If an insurance policy lapses for nonpayment of premium and is reinstated under
the Ceding Company's terms and rules, the Reinsurer will reinstate the
reinsurance as follows:
A. Automatic Cases
The Ceding Company must pay the Reinsurer all back reinsurance premiums in the
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
11
same manner as the Ceding Company received insurance charges under the policy.
When the policy is reinstated by the Ceding Company, the reinsurance will be
automatically reinstated.
B. Facultative Cases
If the Ceding Company requires reinstatement evidence of insurability, the
Ceding Company will submit it to the Reinsurer for approval. In such cases, the
Reinsurer's approval is required for the reinsurance to be reinstated. Upon the
Reinsurer's approval, the Ceding Company must pay the Reinsurer all back
reinsurance premiums in the same manner as the Ceding Company received insurance
premium under the policy.
C. Nonforfeiture Reinsurance Termination
If the Ceding Company has been requested to reinstate a policy that was
reinsured while on extended term or reduced paid-up, then such reinsurance will
terminate and either automatic or facultative reinstatement procedures will be
followed as outlined above in this Article.
ARTICLE XI
EXPENSES
The Ceding Company must pay the expense of all medical examinations, inspection
fees and other charges in connection with the issuance of the insurance.
ARTICLE XII
CLAIMS
A. Liability
If the Ceding Company is liable for insurance benefits on a policy reinsured
under this Agreement, the Reinsurer shall be liable for its portion of the
reinsurance on that policy, as described in Schedule B. All reinsurance claim
settlements will be subject to the terms and conditions of the particular
contract and statutory requirements under which the Ceding Company is liable.
B. Notification
When the Ceding Company is advised of a claim, the Reinsurer must be notified
promptly.
C. Claim Payment
1. Automatic Reinsurance on a Risk
The Ceding Company agrees to notify the Reinsurer of all changes involving its
claim practices or philosophy. The Ceding Company affirms that the claims
practices it employs are consistent with the customary and usual practices of
the insurance industry.
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
12
If a claim is made under insurance reinsured under this Agreement, the Reinsurer
will abide by the issue as it is settled by the Ceding Company. Copies of proofs
or other written matters relating to any claim reimbursements under this
Agreement shall be furnished to the Reinsurer. The Reinsurer will pay the Ceding
Company the reinsurance proceeds within (15) fifteen days of final notification
of the Ceding Company making the settlement of the policy proceeds. The Ceding
Company will deliver a copy of the proof of death, check copy or proof of
payment, claimant's statement and any other documents that the Ceding Company
believes may have a bearing on the claim or proceedings to the Reinsurer.
2. Facultative Reinsurance on a Risk
If a claim is made on a risk reinsured facultatively under this Agreement, the
Ceding Company shall submit to the Reinsurer all relevant and/or requested
documents and papers related to the claim along with the Ceding Company's
recommendation. The Ceding Company shall then wait (5) five days from the date
of mailing during which time the Reinsurer shall have the opportunity to advise
the Ceding Company of its consent or disagreement with the recommendation. In
the event the Reinsurer does not contact the Ceding Company within the (5)
five-day period, the Reinsurer shall be deemed to have approved the
recommendation and the Ceding Company shall be authorized to act accordingly.
The Reinsurer will pay the Ceding Company the reinsurance proceeds when the
Ceding Company makes the settlement of the policy proceeds and delivers proof of
payment to the Reinsurer.
3. Payment of Reinsurance Proceeds
Payment of life reinsurance proceeds will be made in a single sum regardless of
the Ceding Company's mode of settlement with the payee. The Reinsurer shall
reimburse the Ceding Company for its share of any interest paid on claims by the
Ceding Company. Participation in accrued interest by the Reinsurer shall be paid
in accordance with the applicable state statutory regulations.
4. Recapture due to Delinquent Claim Payments
Policies reinsured under this Agreement may be eligible for recapture if the
Reinsurer is delinquent on an undisputed net valid claim amount due to the
Ceding Company and the Ceding Company has given the Reinsurer ninety (90) days
written notice of its intent to recapture and the Reinsurer has failed to pay
the net amount due by the end of the ninety (90) day notice period.
D. Contested Claims
The Ceding Company must promptly notify the Reinsurer of any intent to contest a
claim reinsured under this Agreement or to assert defenses, and if the Ceding
Company's contest of such insurance results in the increase or reduction of
liability, the Reinsurer will share in this increase or reduction. The
Reinsurer's share of the increase or decrease shall be proportional to their
share of the Total Net Amount at Risk, as defined in Schedule B, on the date of
the death of the last insured.
If the Reinsurer should decline to participate in the contest or assertion of
defenses, the
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
13
Reinsurer will then release all of its liability by paying the Ceding Company
the full amount of reinsurance and not sharing in any subsequent increase or
reduction in liability.
All matters with respect to this Agreement require the utmost good faith of both
parties. The Ceding Company agrees to act in accordance with its standard
practices applicable to all claims in enforcing the terms and conditions of the
policies and with respect to the administration, negotiation, payment, denial or
settlement of any claim or legal proceedings. The Ceding Company's decision to
pay a claim must be in accordance with their contractual liability, the terms
and conditions of the Agreement, and their written claims procedures and
guidelines.
E. Misstatement of Age or Sex
If the amount of insurance provided by the policy or policies reinsured under
this Agreement is increased or reduced because of misstatement of age or sex
established after the death of the last insured, the Reinsurer will share with
the Ceding Company in this increase or reduction.
F. Routine Expenses
The Ceding Company will pay the routine expenses incurred in connection with
settling claims. These expenses may include compensation of agents and employees
and the cost of routine investigations.
G. Non-Routine Expenses
The Reinsurer will share with the Ceding Company all expenses that are not
routine. Expenses that are not routine are those directly incurred in connection
with the contest or the possibility of a contest of a claim or the assertion of
defenses, including legal expenses. The expenses will be shared in proportion to
the Total Net Amount at Risk, as defined in Schedule B, for the Ceding Company
and the Reinsurer. However, if the Reinsurer has released the liability under
Section D of this Article, the Reinsurer will not share in any expenses incurred
after the date of the Reinsurer's release.
H. Return of Premium for Misrepresentations and Suicides
If a misrepresentation on an application or a death of an insured risk by
suicide results in the Ceding Company returning the policy premiums to the
policy owner rather than paying the policy benefits, the Reinsurer will refund
all of the reinsurance premiums it received on that policy to the Ceding
Company. This refund given by the Reinsurer will be in lieu of all other
reinsurance benefits payable on that policy under this Agreement.
I. Contestable Period
If the Ceding Company is notified of the death of the first joint insured during
the contestable period, the Ceding Company will investigate the case if, at
original underwriting that insured was determined to be an insurable risk.
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
14
ARTICLE XIII
EXTRA-CONTRACTUAL DAMAGES
In no event will the Reinsurer have any liability for any extra-contractual
damages, which are awarded against the Ceding Company as a result of acts,
omissions, or course of conduct committed solely by the Ceding Company, its
agents or representatives, with no involvement of the Reinsurer in connection
with the insurance reinsured under this Agreement.
The Reinsurer will, however, pay its share of punitive and/or compensatory
damages and/or statutory penalties awarded against the Ceding Company in
connection with benefits reinsured under this Agreement if the Reinsurer agreed
to the act or course of conduct of the Ceding Company that resulted in the
assessment of such damages.
The Reinsurer does recognize that circumstances may arise under which the
Reinsurer, in equity, should share, to the extent permitted by law, in paying
certain assessed damages. Such circumstances are difficult to define in advance,
but by example may involve those situations in which the Reinsurer was an active
party in the act, omission, or course of conduct that ultimately results in the
assessment of such damages. The extent of such sharing is dependent on good
faith assessment of culpability in each case, but all factors being equal, the
division of any such assessment would be in the proportion of Total Net Amount
at Risk (as defined in Schedule B) accepted by each party for the plan of
insurance involved.
ARTICLE XIV
INSPECTION OF RECORDS
Each party or their authorized representatives will have the right, at any
reasonable time and upon reasonable notice, to inspect the other party's books
and documents that relate to reinsurance under this Agreement.
ARTICLE XV
DAC TAX
SECTION 1.848-2(g) (8) ELECTION
A. The Ceding Company and the Reinsurer jointly agree to the DAC Tax Election
pursuant to Section 1.848-2(g)(8) of the Income Tax Regulations (the "Treasury
Regulations") issued under Section 848 of the Internal Revenue Code of 1986, as
amended (the "Code") whereby:
(i) 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 Code
section 848(c)(1); and
(ii) Both parties agree to exchange information pertaining to the amount of net
consideration under this Agreement each year to ensure consistency.
B. As used in this Article XV, the terms "net positive consideration",
"specified policy acquisition expenses" and "general deductions limitation" are
defined by reference to Treasury Regulations Section 1.848-2 and Code Section
848 as of January 1, 2002.
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
15
Also used in this Article, the term "party" refers to either the Ceding Company
or the Reinsurer, as appropriate.
C. The method and timing of the exchange of this information shall be as
follows:
(i) The Ceding Company shall submit a schedule to the Reinsurer by May 1 of
each year of its calculation of the net consideration for the preceding calendar
year.
(ii) The Reinsurer shall, in turn, complete the schedule by indicating
acceptance of the Ceding Company's calculation of net consideration or shall
note in writing any discrepancies. The Reinsurer shall return the completed
schedule to the Ceding Company by June 1 of each year.
(iii) If there are any discrepancies between the Ceding Company's and the
Reinsurer's calculation of net consideration, the parties shall act in good
faith to resolve these discrepancies in a manner that is acceptable to both
parties by July 1 of each year.
(iv) Each party shall attach the final schedule to their respective U.S.
federal income tax returns for each taxable year in which consideration is
transferred under this Agreement. The schedule shall identify this Agreement and
restate the election described in this Article XV and shall be signed by both
parties.
D. This DAC Tax Election shall be effective on the effective date of this
Agreement and shall be effective for all years for which this Agreement remains
in effect.
E. The Ceding Company and the Reinsurer each represent and warrant that they
are subject to U.S. taxation under either the provisions of Subchapter L of
Chapter 1 or Subpart F of Part lll of Subchapter N of Chapter 1 of the Code.
F. Should the Reinsurer breach the representation and warranty of tax status
set forth in this Article of this Agreement, the Reinsurer agrees to indemnify
and hold the Ceding Company, its directors, officers, employees, agents, and
shareholders harmless from any liability and all liability, loss, damages,
fines, penalties, interest, and reasonable attorney's fees, which the Ceding
Company, its directors, officers, employees, agents, and shareholders may
sustain by reason of such breach.
ARTICLE XVI
INSOLVENCY
A. Insolvency of the Reinsurer
If the Reinsurer becomes insolvent as determined by the Regulatory Agency
responsible for such determination, amounts due the Reinsurer will be paid net
of the terms of this Agreement and directly to the liquidator, receiver, or
statutory successor without decrease. In addition, upon the Reinsurer's
insolvency, the Ceding Company may cancel this Agreement for future new business
as described in Article XIX. All reinsurance ceded under this Agreement may be
recaptured by the Ceding Company as of the date the Reinsurer fails to meet its
obligations to pay valid claims under this Agreement.
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
16
B. Insolvency of the Ceding Company
If the Ceding Company should become insolvent, as determined by the Regulatory
Agency responsible for such determination, all reinsurance under this Agreement
will be payable by the Reinsurer directly to the Ceding Company's liquidator,
receiver or statutory successor, on the basis of the liability of the Ceding
Company under the policy or policies reinsured and without diminution because of
the insolvency of the Ceding Company. However, in the event of such insolvency,
the liquidator, receiver, or statutory successor will give written notice of a
pending claim against the Ceding Company on the reinsured policy. It will do so
within a reasonable time after the claim is filed in the insolvency proceedings.
During the pendency of such a claim, the Reinsurer may investigate the claim and
may, at its own expense, interpose any defense or defenses, which it may deem
available to the insolvent Ceding Company, its liquidator, receiver, or
statutory successor, in the proceedings where the claim is to be adjudicated.
The expense thus incurred by the Reinsurer will be chargeable against the
insolvent Ceding Company, subject to court approval, as part of the expense of
liquidation to the extent of a proportionate share of the benefit, which may
accrue to the insolvent Ceding Company solely as a result of the defense
undertaken by the Reinsurer.
Where two or more reinsurers are involved in the same claim and a majority in
interest elect to interpose defense to the claim, the expense will be
apportioned in accord with the terms of the reinsurance agreement as though the
expense had been incurred by the insolvent Ceding Company.
ARTICLE XVII
OFFSET
Any undisputed debts or credits, matured or unmatured, liquidated or
unliquidated, regardless of when they arose or were incurred, in favor of or
against either the Ceding Company or the Reinsurer with respect to this
Agreement, shall be offset, and only the balance shall be allowed or paid. In
the event the Ceding Company becomes insolvent, offsets shall be allowed in
accordance with applicable law.
ARTICLE XVIII
ARBITRATION
The Ceding Company and the Reinsurer mutually understand and agree that the
wording and interpretation of this Agreement is based on the usual customs and
practice of the insurance and reinsurance industry. While both the Ceding
Company and the Reinsurer agree to act in good faith in its dealings with each
other, it is understood and recognized that situations may arise in which they
cannot reach an agreement.
In the event that any dispute cannot be resolved to mutual satisfaction, the
dispute will first be subject to good-faith negotiation as described below in an
attempt to resolve the dispute without the need to institute formal arbitration
proceedings.
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
17
Within (10) ten days after one of the parties has given the other the first
written notification of the specific dispute, each of the parties will appoint a
designated officer to attempt to resolve the dispute. The officers will meet at
a mutually agreeable location as early as possible and as often as necessary, in
order to gather and furnish the other with all appropriate and relevant
information concerning the dispute. The officers will discuss the problem and
will negotiate in good faith without the necessity of any formal arbitration
proceedings. During the negotiation process, all reasonable requests made by one
officer to the other for information will be honored. The designated officers
will decide the specific format for such discussions.
If the officers cannot resolve the dispute within (30) thirty days of their
first meeting, both parties agree that they will submit the dispute to formal
arbitration. However, the parties may agree in writing to extend the negotiation
period for an additional (30) thirty days.
No later than (15) fifteen days after the final negotiation meeting, the
officers taking part in the negotiation will give both the Ceding Company and
the Reinsurer written confirmation that they are unable to resolve the dispute
and that they recommend establishment of formal arbitration.
An arbitration panel consisting of (3) three past or present officers of life
insurance or life reinsurance companies not affiliated with either of the
parties in any way will settle the dispute. Each party will appoint one
arbitrator and the two will select a third. If the two arbitrators cannot agree
on the choice of a third within (30) thirty days following their appointment,
each arbitrator shall nominate three candidates within (10) ten days thereafter,
two of whom the other shall decline, and the decision shall be made by drawing
lots.
The Ceding Company and the Reinsurer shall bear the expense of its own
arbitrator and shall jointly bear with the other the expense of the third
arbitrator. In the absence of a decision to the contrary by the arbitration
panel, the Ceding Company and the Reinsurer shall jointly share in all other
costs of the arbitration.
The arbitration proceedings will be conducted according to the Commercial
Arbitration Rules of XXXXX-US, which are in effect at the time the arbitration
begins.
The arbitration will take place in Hartford, Connecticut unless the parties
mutually agree otherwise.
Within (60) sixty days after the beginning of the arbitration proceedings the
arbitrators will issue a written decision on the dispute and a statement of any
award to be paid as a result. The decision will be based on the terms and
conditions of this Agreement as well as the usual customs and practices of the
insurance and reinsurance industry, rather than on strict interpretation of the
law. The decision will be final and binding on both the Ceding Company and the
Reinsurer and there will be no further appeal.
The parties may mutually agree to extend any of the negotiation or arbitration
periods shown in this Article.
Unless otherwise decided by the arbitrators, the parties will share in their
proportion of all expenses resulting from the arbitration, including the fees
and expenses for the arbitrators, except that each party will be responsible for
its own attorneys' fees.
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
18
ARTICLE XIX
TERMINATION
A. The Ceding Company and the Reinsurer may terminate this Agreement as it
applies to the new business of each by giving (90) ninety days' written notice
of termination. The day the notice is deposited in the mail addressed to the
Home Office, or to an Officer of each party, will be the first day of the (90)
ninety-day period. In addition, this Agreement may be terminated immediately for
the acceptance of new reinsurance by either party if one of the parties becomes
insolvent as described in Article XVI.
B. During the (90) ninety-day period, this Agreement will continue to be in
force between the terminating parties.
C. After termination, the terminating parties shall remain liable under the
terms of this Agreement for all Automatic and Facultative Reinsurance that
becomes effective prior to termination of this Agreement. After termination, the
Reinsurer shall be liable for all Automatic and Facultative Reinsurance that has
an application date on or before the effective date of the termination.
ARTICLE XX
GENERAL PROVISIONS
A. Entire Contract
This Agreement with any attached Schedules and Exhibits shall constitute the
entire contract between the parties with respect to the business being reinsured
hereunder and there are no understandings between the parties other than as
expressed herein.
B. Modifications
Any modification or change to the provisions of this Agreement shall be null and
void unless set forth in a written amendment to the Agreement which is signed by
all parties to the amendment.
C. Severability
In the event that any provision or term of this Agreement shall be held by any
court, arbitrator, or administrative agency to be invalid, illegal or
unenforceable, all of the other terms and provisions shall remain in full force
and effect to the extent that their continuance is practicable and consistent
with the original intent of the parties. In addition, if any provision or term
is held invalid, illegal or unenforceable, the parties will attempt in good
faith to renegotiate the Agreement to carry out the original intent of the
parties.
D. Survival
All provisions of this Agreement shall survive its termination to the extent
necessary to carry out the purposes of this Agreement or to ascertain and
enforce the parties' rights or obligations hereunder existing at the time of
termination.
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
19
E. Non-Waiver
No waiver by either party of any violation or default by the other party in the
performance of any promise, term or condition of this Agreement shall be
construed to be a waiver by such party of any other or subsequent default in
performance of the same or any other promise, term or condition of this
Agreement. No prior transactions or dealings between the parties shall be deemed
to establish any custom or usage waiving or modifying any provision hereof. The
failure of either party to enforce any part of this Agreement shall not
constitute a waiver by such party of its right to do so, nor shall it be deemed
to be an act of ratification or consent.
F. Governing Law
This Agreement shall be governed by the laws of the state of Connecticut.
G. Assignment
Neither party may assign any of its rights, duties or obligations under this
Agreement without the prior written consent of the other party.
H. Counterparts
This Agreement may be executed in one or more counterparts, each of which shall
constitute an original.
I. Force Majeure
Neither party shall be liable for any delay or non-performance of any covenant
contained herein nor shall any such delay or non-performance constitute a
default hereunder, or give rise to any liability for damages if such delay or
non-performance is caused by an event of "force majeure." As used herein, the
term "Force Majeure," means an event, explosion, action of the elements, strike
or other labor relations problem, restriction or restraint imposed by law, rule
or regulation of any public authority, whether federal, state or local, and
whether civil or military, act of any military authority, interruption of
transportation facilities or any other cause which is beyond the reasonable
control of such party and which by the exercise of reasonable diligence such
party is unable to prevent. The existence of any event of Force Majeure shall
extend the term of performance on the part of such party to complete performance
in the exercise of reasonable diligence after the event of Force Majeure has
been removed.
J. No Limitation on Disclosure of Tax Treatment
Notwithstanding anything herein to the contrary, except as reasonably necessary
to comply with applicable securities laws, each party to this Agreement (and
each employee, representative, or other agent of such party) may consult any tax
advisor regarding the U.S. federal income tax treatment or tax structure of the
transaction (the "Tax Transaction"), and disclose to any and all persons,
without limitation of any kind, the Tax Treatment and all materials of any kind
(including opinions or other tax analyses) that are provided to such party
relating to the Tax Treatment. The permission to disclose the Tax Treatment is
limited to any facts relevant to the U.S. federal income Tax Treatment and does
not include information relating to the identity of the parties.
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
20
ARTICLE XXI
CONFIDENTIALITY
As used herein, "Confidential Information" means all of the Ceding Company's
confidential, proprietary, or trade secret information, including, but not
limited to, all information on the Ceding Company's customers and claimants and
other information the Ceding Company discloses to the Reinsurer. The term
"Confidential Information" does not include any information which (i) at the
time of disclosure or thereafter is generally available to and known by the
public other than by way of a wrongful disclosure by a party or its
Representatives; (ii) was available on a non-confidential basis from a source
other than the parties hereto or their Representatives, provided that such
source is not and was not bound by a confidentiality agreement with a party
hereto; or (iii) was independently developed without violating any obligations
under this Agreement and without the use of any Confidential Information.
The Reinsurer shall maintain the confidentiality of the Confidential
Information, shall use it only for purposes for which it was disclosed and shall
not disclose it to any other person except to employees, agents, and other
persons who need to know such Confidential Information to carry out the purposes
for which it was disclosed and who agree to maintain the confidentiality of the
information provided herein.
ARTICLE XXII
NOTICES AND COMMUNICATIONS
All notices and communications under this treaty should be sent to:
If to the Ceding Company: If to the Reinsurer:
Individual Life Director of President
Reinsurance
Hartford Life Revios Reinsurance U.S. Inc
000 Xxxxxxxxx Xxxxxx 000 Xxxxxxxxxx Xxxxxx
Xxxxxxxx, XX 00000 Xxxxxxx, XXX0X 0X0
Mail delivery: 16thfloor
Copy (which shall not constitute Copy (which shall not constitute
notice) to: notice) to:
Chief Actuary
Hartford Life
000 Xxxxxxxxx Xx
Xxxxxxxx, XX 00000
General Counsel
Hartford Life
000 Xxxxxxxxx Xx
Xxxxxxxx, XX 00000
Notices are deemed received when delivered.
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
21
ARTICLE XXIII
EFFECTIVE DATE
The provisions of this Agreement shall be effective with respect to policies
issued on or after January 1,2002.
ARTICLE XXIV
EXECUTION
REVIOS REINSURANCE U.S. INC.
(FORMERLY XXXXXXX GLOBAL LIFE REINSURANCE COMPANY)
By: /s/ [ILLEGIBLE] Attest: /s/ [ILLEGIBLE]
------------------------------ ------------------------------
Title: Vice President Reinsurance Title: Vice President Client Services
Solutions & Technology
Date: July 22, 2005 Date: July 28, 2005
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxxxxx X. Xxxxxx
------------------------------ ------------------------------
Xxxxxx X. Xxxxxxxx, FSA, XXXX Xxxxxxx X. Xxxxxx, FSA, MAAA
Assistant Vice President Vice President and Actuary
Individual Life Product
Management
Date: 7/19/2005 Date: 7/19/2005
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
22
SCHEDULE A
PLANS COVERED UNDER THIS AGREEMENT
TYPE OF BUSINESS Fully underwritten Last Survivor Plans
Single Life Term under the "Xxxxx" Program described in
Exhibit IV
PLANS OF INSURANCE GENERAL FORM NO'S.
------------------------------------------------------------------------------------------------------
Last Survivor Universal Life HL-14393, HL-A14407, XXX-1011
Last Survivor Variable Life HL-14623, XXX-1020
Last Survivor Variable Life II LA-1151(98), HL-15441 (98)(NY)
Last Survivor SPVL HL-LSPVL97, XXX-LSPVL97
RIDERS
--------------------------------------------------
Four Year Term Xxxxx XX-12933, HL-A12989, XXX-1080
Estate Protection Xxxxx XX-14627, XXX-1023
Twenty-four Month Exchange Xxxxx XX-12963, XXX-1013
Single Life YRT Life Insurance Xxxxx XX-14626, XXX-1021, LA-1150(98)
Guaranteed COI Benefit Rider LA-1174(00)
Last Survivor Term Xxxxx XX-14394
Estate Tax Repeal Rider LA-1194(02), HL-15842(02), HL-15843(02)
Last Survivor Exchange Option Rider (24) LA-10022, LA-1013, HL-14395, HL-14624
Estate Tax Repeal Benefit Rider LA-1168(00), LA-1166(00), HL-11503(00)
Mortality and Expense Risk Rates Rider LA-1198(02),HL-1584(02)
DESCRIPTIONS
[Redacted]
RIDERS WHERE ADDITIONAL PREMIUM IS DUE TO THE REINSURER:
Four Year Term Rider: This rider will pay the term insurance benefit upon
receipt of due proof of the Last Surviving Insured's death while the policy and
this rider are in force.
Estate Protection Rider: This rider will pay the term insurance benefit upon
receipt of due proof of the Last Surviving Insured's death while the policy and
this rider are in force.
Single Life YRT Life Insurance Rider: This rider will provide additional term
insurance coverage on the life of the named Insured.
Last Survivor Term Rider: This rider provides supplemental last survivor term
insurance coverage on the base insureds.
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
23
SCHEDULE A
PLANS COVERED UNDER THIS AGREEMENT
RIDERS THAT ALTER THE POLICY AND IN WHICH NO ADDITIONAL PREMIUM IS PAID TO THE
REINSURER.
IF A POLICY HAS THIS RIDER IT IS STILL COVERED UNDER THE AGREEMENT:
Twenty-four Month Exchange Rider: This rider allows the last survivor policy to
be exchanged for two individual policies on the life of each of the Insureds,
subject to the conditions stated in this rider. For example, this rider can be
used in case of divorce.
Estate Tax Repeal Rider: The purpose of this rider is to allow a policy to
surrender without surrender charges if the Federal Estate Tax is not in effect
in 2011. If a reinsured policy has this rider, the policy is still covered under
this Agreement, and there is no additional premium paid to the Reinsurer
specifically for the Estate Tax Rider.
Guaranteed COI Benefit Rider: This rider provides guaranteed cost of insurance
rates for the first 10 policy years. On each policy anniversary, we declare a
cost of insurance rate for a single policy year. This policy year is the policy
year 9 years from the then current policy anniversary. Thus the rider provides
that on any policy anniversary, cost of insurance rates over the next 10 years
will not exceed those provided by the rider. This rider is currently available
in only a few states and on variable life policy forms where the face amount is
at least thirty million dollars.
Last Survivor Exchange Option Rider (24): This rider allows the last survivor
policy to be exchanged for two individual policies on the life of each of the
Insureds, subject to the conditions stated in this rider. For example, this
rider can be used in case of divorce.
Estate Tax Repeal Benefit Rider: This rider will pay the account value less
indebtedness if the Federal Estate Tax Law is fully repealed by December 31,
2010 and we receive a request for this benefit amount from the insured.
Mortality and Expense Risk Rider: This rider guarantees that the mortality and
expense risk rate will be zero for years greater than and equal to 21.
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
24
SCHEDULE B
BASIS OF REINSURANCE
-->REINSURANCE POOL SHARE:
The Reinsurer shall automatically [Redacted] Reinsured Net Amount at Risk on a
policy, as defined below.
TYPE OF REINSURANCE:
Excess of Retention Yearly Renewable Term
LEAD REINSURER:
AUTOMATIC REINSURANCE
The Ceding Company will retain its available retention on each risk as
referenced in Exhibits II and III. The Reinsurance Pool Share of the remainder
will be ceded to the Reinsurer for reinsurance.
FACULTATIVE REINSURANCE
The Reinsurer will accept X% (as determined at issue) of the risk.
NET AMOUNT AT RISK DEFINITION:
[Redacted]
MINIMUM INITIAL FACULTATIVE REINSURANCE SUBMISSION:
[Redacted]
FACULTATIVE OBLIGATORY:
The Reinsurer shall provide the following Facultative Obligatory capacity:
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
25
EXHIBIT I
REINSURANCE PREMIUM CALCULATION
1. Reinsurance Premium
ANNUAL YRT REINSURANCE PREMIUM
[Redacted]
2. PREMIUM TAX
Premium tax will not be reimbursed.
3. RIDERS
Term riders and other riders providing additional or increasing coverage will
use the same methods and YRT rates as the base plan. For single life additional
coverage riders the Reinsurance Premium calculation will be as described in
paragraphs one and three of Reinsurance Premium above.
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
26
EXHIBIT II
RETENTION, BINDING, AND ISSUE LIMITS
FOR LAST SURVIVOR TREATY
TOTAL POOL LIMITS
[Redacted]
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
27
EXHIBIT III
TOTAL POOL LIMITS
[Redacted]
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
28
EXHIBIT IV
XXXXX PROGRAM
With this program, two single life term policies may be issued in anticipation
of conversion to a last survivor policy. Each term policy will be issued for
half the face amount of the anticipated last survivor policy. Conversion to a
last survivor policy will not be allowed beyond two years after the latter term
policy date.
When term policies under this "Xxxxx Program" that are issued after January 1,
2002 and during the time when this Last Survivor Excess YRT Pool is open to new
business are converted to a last survivor policy, that policy will be reinsured
as a new policy under the Last Survivor Excess YRT Pool effective January 1,
2002. The policy date of the last survivor policy will be the conversion date.
The contestable and suicide period will be measured from the issue date of the
term policies.
Both lives will be underwritten for the full amount of the last survivor policy
at the time of issue of the term policies. No uninsurable lives will be
accepted. There will be no Facultative Reinsurance. The reinsurance rates on the
last survivor policy will be the currently effective rates for the Last Survivor
Excess YRT Pool and will be attained age, beginning with the first duration,
based on the ages at issue of the last survivor policy.
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
29
EXHIBIT V
DIRECTOR'S CHARITABLE AWARD PROGRAM (DCAP)
[Redacted]
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
30
EXHIBIT V
DIRECTOR'S CHARITABLE AWARD PROGRAM (DCAP)
[Redacted]
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
31
EXHIBIT VI
Annual per 1000 Yearly Renewable Term reinsurance rates are attached. These
rates are used for Automatic, Facultative Obligatory, and Facultative policies
PRODUCTS USING MULTI-CLASS RATE TABLES:
Last Survivor Variable Life
[Redacted]
Last Survivor Variable Life II
[Redacted]
PRODUCTS USING UNI-CLASS RATE TABLES:
Last Survivor Universal Life
[Redacted]
Last Survivor SPVL
[Redacted]
Last Survivor Excess Pool
Between HLAIC and Revios Re
Effective 01/01/2002
32
AMENDMENT 1
EFFECTIVE DECEMBER 1, 2005
TO THE
AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE JANUARY 1, 2002
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
("CEDING COMPANY")
AND
REVIOS REINSURANCE U.S. INC.
(FORMERLY XXXXXXX GLOBAL LIFE REINSURANCE COMPANY)
("REINSURER")
RECITALS
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend or modify Exhibit II
and Exhibit III under the Agreement.
NOW, THEREFORE for good and valuable considerations, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
AMENDMENT
The parties agree to remove Exhibit II and Exhibit III, in their entirety and
replace them with the attached Exhibit II and Exhibit III, effective December 1,
2005.
Except as herein amended, all other terms and conditions of this Agreement shall
remain unchanged.
Last Survivor 01/01/2002 -- Amendment 1
Between HLAIC and Revios
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, hereby executed this Amendment in duplicate on the dates
indicated below, with an effective date of December 1, 2005.
REVIOS REINSURANCE U.S. INC.
(FORMERLY XXXXXXX GLOBAL LIFE REINSURANCE COMPANY)
By: /s/ Xxxxxxx Xxxxxx Attest: /s/ Xxxxxxx Xxxxxxx
------------------------------ ------------------------------
Name: Xxxxxxx Xxxxxx Name: Xxxxxxx Xxxxxxx
Title: Senior Vice President, Title: Vice President Client Services
Corporate Markets & Technology
Date: 14 FEBRUARY 06 Date: FEBRUARY 27, 2006
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxxxxxx X. Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxxxxxx X. Xxxxxx
Title: Assistant Vice President, Title: Assistant Vice President,
Individual Life Product Individual Life Product
Development Development
Date: 10/28/2005 Date: 10/28/05
Last Survivor 01/01/2002 -- Amendment 1
Between HLAIC and Revios
2
EXHIBIT II
RETENTION, BINDING, AND ISSUE LIMITS
FOR LAST SURVIVOR TREATY
TOTAL POOL LIMITS
EFFECTIVE DECEMBER 1, 2005
[Redacted]
Last Survivor 01/01/2002 -- Amendment 1
Between HLAIC and Revios
3
EXHIBIT III
EFFECTIVE DECEMBER 1, 2005
[Redacted]
Last Survivor 01/01/2002 -- Amendment 1
Between HLAIC and Revios
4
AMENDMENT 2
EFFECTIVE JANUARY 1, 2006
TO THE
AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE JANUARY 1, 2002
("AGREEMENT")
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
("CEDING COMPANY")
AND
REVIOS REINSURANCE U.S. INC.
(FORMERLY XXXXXXX GLOBAL LIFE REINSURANCE COMPANY)
("REINSURER")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
reflect the change in reinsurance rates for policies issued on or after January
1, 2006.
NOW, THEREFORE for good and valuable considerations, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree to amend the
Agreement as follows:
I. Exhibit I is deleted in its entirety and replaced with the attached revised
Exhibit I.
II. The attached Exhibit VII is added to and made a part of the Agreement.
Except as herein amended, all other terms and conditions of the Reinsurance
Agreement shall remain in full force and effect and unchanged.
Last Survivor Excess Treaty -- Effective 01/01/2002
Between HLAIC and Revios (formerly known as Xxxxxxx Global)
Amendment #2 -- Effective 01/01/2006
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of January 1, 2006.
REVIOS REINSURANCE U.S. INC.
(FORMERLY XXXXXXX GLOBAL LIFE REINSURANCE COMPANY)
By: /s/ Xxxxxx X. Xxxxxx Attest:
------------------------------ ------------------------------
Name: Xxxxxx X. Xxxxxx Xx Name:
Title: Vice President, Actuarial Title:
Services
Date: 4/23/08 Date:
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxx Xxxxxx
Title: Vice President, Individual Title: Senior Vice President,
Life Product Individual Life Product
Date: 1/8/2008 Date: 1/8/2008
Last Survivor Excess Treaty -- Effective 01/01/2002
Between HLAIC and Revios (formerly known as Xxxxxxx Global)
Amendment #2 -- Effective 01/01/2006
2
EXHIBIT I
REINSURANCE PREMIUM CALCULATION
1. REINSURANCE PREMIUM
ANNUAL YRT REINSURANCE PREMIUM
[Redacted]
Last Survivor Excess Treaty -- Effective 01/01/2002
Between HLAIC and Revios (formerly known as Xxxxxxx Global)
Amendment #2 -- Effective 01/01/2006
3
EXHIBIT I
REINSURANCE PREMIUM CALCULATION
2. PREMIUM TAX
Premium tax will not be reimbursed.
3. RIDERS
Term riders and other riders providing additional or increasing coverage will
use the same methods and YRT rates as the base plan.
Last Survivor Excess Treaty -- Effective 01/01/2002
Between HLAIC and Revios (formerly known as Xxxxxxx Global)
Amendment #2 -- Effective 01/01/2006
4
EXHIBIT VII
Annual per 1000 Yearly Renewable Term reinsurance rates are attached.
The rate table to be used depends on the issue date of the policy.
These rates are used for Automatic, Facultative Obligatory, and Facultative
policies
PRODUCTS USING MULTI-CLASS RATE TABLES:
Last Survivor Variable Life [Redacted]
Last Survivor Variable Life II [Redacted]
PRODUCTS USING UNI-CLASS RATE TABLES:
Last Survivor Universal Life [Redacted]
Last Survivor SPVL [Redacted]
Last Survivor Excess Treaty -- Effective 01/01/2002
Between HLAIC and Revios (formerly known as Xxxxxxx Global)
Amendment #2 -- Effective 01/01/2006
5
AMENDMENT 3
EFFECTIVE JUNE 23, 2006
TO THE
AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE JANUARY 1, 2002
("AGREEMENT")
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
("CEDING COMPANY")
AND
REVIOS REINSURANCE U.S. INC.
(FORMERLY XXXXXXX GLOBAL LIFE REINSURANCE COMPANY)
("REINSURER")
RECITALS
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend or modify the
Agreement to reflect the addition of the Hartford Variable Universal Life Last
Survivor product for policies issued on or after June 23, 2006.
NOW, THEREFORE for good and valuable considerations, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
AMENDMENT
I. Schedule A shall be amended to reflect the addition of the Hartford
Variable Universal Life Last Survivor product for policies issued on or
after June 23, 2006. (Amended June 23, 2006).
II. Effective June 23, 2006, Exhibit VI shall be amended to add the Hartford
Variable Universal Life Last Survivor product. This new product is shown in
the attached Exhibit VI (Amended June 23, 2006).
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
Last Survivor Excess Treaty -- Effective 01/01/2002
Between HLAIC and Revios
Amendment #3 -- Effective 06/23/2006
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, hereby executed this Amendment in duplicate on the dates
indicated below, with an effective date of June 23, 2006.
REVIOS REINSURANCE U.S. INC.
By: /s/ Xxxxx Xxxxx Attest: /s/ Xxxxxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxxx Xxxxx Name: Xxxxxxx Xxxxxx
Title: Vice President Actuarial Title: Senior Vice President,
Services Corporate Markets
Date: Dec 21, 2006 Date: 15 Jan 07
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxx Xxxxxx
Title: Vice President, Individual Title: Senior Vice President,
Life Product Individual Life Product
Date: 11/20/2007 Date: 11/26/2007
Last Survivor Excess Treaty -- Effective 01/01/2002
Between HLAIC and Revios
Amendment #3 -- Effective 06/23/2006
2
SCHEDULE A
PLANS COVERED UNDER THIS AGREEMENT
AMENDED 06/23/2006
TYPE OF BUSINESS Fully underwritten Last Survivor Plans
Single Life Term under the "Xxxxx" Program described in
Exhibit IV
PLANS OF INSURANCE GENERAL FORM NO'S.
--------------------------------------------------------------------------------
Last Survivor Universal Life HL-14393, HL-A14407, XXX-1011
Last Survivor Variable Life HL-14623, XXX-1020
Last Survivor Variable Life II LA-1151(98), HL-15441(98)(NY)
Last Survivor SPVL HL-LSPVL97, XXX-LSPVL97
Hartford Variable Universal Life Last LA-1287(06), HL-19217(06)(NY)
Survivor
RIDERS
--------------------------------------------------------------------------------
Four Year Term Xxxxx XX-12933, HL-A12989, XXX-1080
Estate Protection Xxxxx XX-14627, XXX-1023
Twenty-four Month Exchange Xxxxx XX-12963, XXX-1013
Single Life YRT Life Insurance Xxxxx XX-14626, XXX-1021, LA-1150(98)
Guaranteed COI Benefit Rider LA-1174(00)
Last Survivor Term Xxxxx XX-14394
Estate Tax Repeal Rider LA-1194(02), HL-15842(02),
HL-15843(02)
Last Survivor Exchange Option Rider (24) LA-10022, LA-1013, HL-14395, HL-14624
Estate Tax Repeal Benefit Rider LA-1168(00), LA-1166(00), HL-11503(00)
Mortality and Expense Risk Rates Rider LA-1198(02), HL-1584(02)
DESCRIPTIONS
RIDERS WHERE ADDITIONAL PREMIUM IS DUE TO THE REINSURER:
Four Year Term Rider: This rider will pay the term insurance benefit upon
receipt of due proof of the Last Surviving Insured's death while the policy and
this rider are in force.
Estate Protection Rider: This rider will pay the term insurance benefit upon
receipt of due proof of the Last Surviving Insured's death while the policy and
this rider are in force.
Single Life YRT Life Insurance Rider: This rider will provide additional term
insurance coverage on the life of the named Insured.
Last Survivor Term Rider: This rider provides supplemental last survivor term
insurance coverage on the base insureds.
Last Survivor Excess Treaty -- Effective 01/01/2002
Between HLAIC and Revios
Amendment #3 -- Effective 06/23/2006
3
SCHEDULE A
PLANS COVERED UNDER THIS AGREEMENT
AMENDED 06/23/2006
RIDERS THAT ALTER THE POLICY AND IN WHICH NO ADDITIONAL PREMIUM IS PAID TO THE
REINSURER. IF A POLICY HAS THIS RIDER IT IS STILL COVERED UNDER THE AGREEMENT:
Twenty-four Month Exchange Rider: This rider allows the last survivor policy to
be exchanged for two individual policies on the life of each of the Insureds,
subject to the conditions stated in this rider. For example, this rider can be
used in case of divorce.
Estate Tax Repeal Rider: The purpose of this rider is to allow a policy to
surrender without surrender charges if the Federal Estate Tax is not in effect
in 2011. If a reinsured policy has this rider, the policy is still covered under
this Agreement, and there is no additional premium paid to the Reinsurer
specifically for the Estate Tax Rider.
Guaranteed COI Benefit Rider: This rider provides guaranteed cost of insurance
rates for the first 10 policy years. On each policy anniversary, we declare a
cost of insurance rate for a single policy year. This policy year is the policy
year 9 years from the then current policy anniversary. Thus the rider provides
that on any policy anniversary, cost of insurance rates over the next 10 years
will not exceed those provided by the rider. This rider is currently available
in only a few states and on variable life policy forms where the face amount is
at least thirty million dollars.
Last Survivor Exchange Option Rider (24): This rider allows the last survivor
policy to be exchanged for two individual policies on the life of each of the
Insureds, subject to the conditions stated in this rider. For example, this
rider can be used in case of divorce.
Estate Tax Repeal Benefit Rider: This rider will pay the account value less
indebtedness if the Federal Estate Tax Law is fully repealed by December 31,
2010 and we receive a request for this benefit amount from the insured.
Mortality and Expense Risk Rider: This rider guarantees that the mortality and
expense risk rate will be zero for years greater than and equal to 21.
Last Survivor Excess Treaty -- Effective 01/01/2002
Between HLAIC and Revios
Amendment #3 -- Effective 06/23/2006
4
EXHIBIT VI
SOA75-80 tables AL5
B WITH MANULIFE EXTENSIONS
AMENDED 06/23/2006
Annual per 1000 Yearly Renewable Term reinsurance rates are attached.
The rate table to be used depends on the issue date of the policy.
These rates are used for Automatic, Facultative Obligatory, and Facultative
policies.
PRODUCTS USING MULTI-CLASS RATE TABLES:
Last Survivor Variable Life
[Redacted]
Last Survivor Variable Life II
[Redacted]
Hartford Variable Universal Life Last Survivor
[Redacted]
PRODUCTS USING UNI-CLASS RATE TABLES:
Last Survivor Universal Life
[Redacted]
Last Survivor SPVL
[Redacted]
Last Survivor Excess Treaty -- Effective 01/01/2002
Between HLAIC and Revios
Amendment #3 -- Effective 06/23/2006
AMENDMENT 4
Effective June 1, 2007
to the
Automatic and Facultative Yearly Renewable Term Reinsurance Agreement
Effective January 1, 2002
Between
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
And
REVIOS REINSURANCE U.S. INC. ("REINSURER")
("Agreement")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
reflect the availability of an increased retention limit on cases that would
otherwise qualify for Automatic Reinsurance.
NOW, THEREFORE for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree to amend the
Agreement as follows:
I. Schedule B is deleted in its entirety and replaced with the attached revised
Schedule B.
II. Exhibit II is deleted in its entirety and replaced with the attached
revised Exhibit II.
III. Exhibit III is deleted in its entirety and replaced with the attached
revised Exhibit III.
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
Last Survivor Treaty -- Effective 01/01/2002
Between HLAIC and Revios Re
Amendment #4 -- Effective 06/01/2007
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of June 1, 2007.
REVIOS REINSURANCE U.S. INC.
By: /s/ [ILLEGIBLE] Attest: /s/ [ILLEGIBLE]
------------------------------ ------------------------------
Name: [ILLEGIBLE] Name: [ILLEGIBLE]
Title: Vice President Actuarial Title: Senior Vice President
Services Corporate Markets
Date: June 28, 2007 Date: 04 July 07
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxx Xxxxxx
Title: Vice President, Individual Title: Senior Vice President,
Life Product Individual Life Product
Date: 10/22/2007 Date: 10/22/2007
Last Survivor Treaty -- Effective 01/01/2002
Between HLAIC and Revios Re
Amendment #4 -- Effective 06/01/2007
2
SCHEDULE B
BASIS OF REINSURANCE
Effective June 1, 2007
REINSURANCE POOL SHARE:
The Reinsurer shall automatically [Redacted] Reinsured Net Amount at Risk on a
policy, as defined below.
TYPE OF REINSURANCE:
Excess of Retention Yearly Renewable Term
LEAD REINSURER:
[Redacted]
AUTOMATIC REINSURANCE
The Ceding Company will retain each risk up to its available retention limits as
specified by Retention Limit I in Exhibit II. However, the Ceding Company may
elect, at its sole discretion, to retain up to its available retention limits as
specified by Retention Limit II in Exhibit II provided the case would otherwise
meet the requirements for Automatic Reinsurance. Documentation of such cases
will be retained in the underwriting records of the Ceding Company. The
Reinsurance Pool Share of amounts in excess of the Ceding Company's retention
will be ceded to the Reinsurer for reinsurance in accordance with this
Agreement.
FACULTATIVE REINSURANCE
The Reinsurer will accept X% (as determined at issue) of the risk.
NET AMOUNT AT RISK DEFINITION:
[Redacted]
MINIMUM FACULTATIVE REINSURANCE CESSION:
[Redacted]
FACULTATIVE OBLIGATORY:
The Reinsurer shall provide the following Facultative Obligatory capacity:
Last Survivor Treaty -- Effective 01/01/2002
Between HLAIC and Revios Re
Amendment #4 -- Effective 06/01/2007
3
EXHIBIT II
RETENTION, BINDING, AND ISSUE LIMITS FOR LAST SURVIVOR TREATY
TOTAL POOL LIMITS
EFFECTIVE JUNE 1, 2007
Retention Limit I ("RL I") Retention Limit II ("XX XX")
[Redacted] [Redacted]
Automatic Binding Limit (excludes Automatic Binding Limit (excludes
retention) retention)
[Redacted] [Redacted]
Automatic Issue Limit with RL I Automatic Issue Limit with XX XX
[Redacted] [Redacted]
Automatic Processing Limit with RL Automatic Processing Limit with RL
I II
[Redacted] [Redacted]
Facultative Obligatory Auto Binding Facultative Obligatory Auto Binding
Limit [ILLEGIBLE] Limit [ILLEGIBLE]
[Redacted] [Redacted]
Facultative Obligatory Auto Issue Facultative Obligatory Auto Issue
Limit with RL I [ILLEGIBLE] Limit with XX XX [ILLEGIBLE]
[Redacted] [Redacted]
Jumbo Limit Jumbo Limit
[Redacted] [Redacted]
Last Survivor Treaty -- Effective 01/01/2002
Between HLAIC and Revios Re
Amendment #4 -- Effective 06/01/2007
4
EXHIBIT II
RETENTION, BINDING, AND ISSUE LIMITS FOR LAST SURVIVOR TREATY
Total Pool Limits
Effective June 1, 2007
[Redacted]
Last Survivor Treaty -- Effective 01/01/2002
Between HLAIC and Revios Re
Amendment #4 -- Effective 06/01/2007
5
EXHIBIT III
RETENTION LIMIT I
Effective June 1, 2007
[Redacted]
Last Survivor Treaty -- Effective 01/01/2002
Between HLAIC and Revios Re
Amendment #4 -- Effective 06/01/2007
6
EXHIBIT III
RETENTION LIMIT II
Effective June 1, 2007
[Redacted]
Last Survivor Treaty -- Effective 01/01/2002
Between HLAIC and Revios Re
Amendment #4 -- Effective 06/01/2007
7
AMENDMENT 5
EFFECTIVE FEBRUARY 11, 2008
TO THE
AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE JANUARY 1, 2002
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
SCOR GLOBAL LIFE RE INSURANCE COMPANY OF TEXAS
(FORMERLY REVIOS REINSURANCE U.S. INC.) ("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
revise the maximum issue age to 85; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
increase the Automatic Binding, Automatic Issue and Automatic Processing Limits
under the Retention Limit II in Exhibit II, originally described in Amendment 4.
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree to amend the
Agreement as follows:
- Article II, Section A, Paragraph 4, is deleted in its entirety and
replaced with the following:
4. The minimum issue age will be 18 and the maximum issue age
will be 85.
- Article II, Section A, Paragraph 7, is deleted in its entirety and
replaced with the following:
Last Survivor Excess Treaty -- Effective 1/01/2002
Between HLAIC and SCOR (Revios Re)
Amendment 5 -- Effective 2/11/2008
1
- Exhibit II is deleted in its entirety and replaced with the attached
revised Exhibit II.
- Exhibit III is deleted in its entirety and replaced with the attached
revised Exhibit III.
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
Last Survivor Excess Treaty -- Effective 1/01/2002
Between HLAIC and SCOR (Revios Re)
Amendment 5 -- Effective 2/11/2008
2
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of February 11, 2008.
SCOR GLOBAL LIFE RE INSURANCE COMPANY OF TEXAS
By: /s/ Xxx Xxxxxx Attest: /s/ Xxxx Xxxxxxxx
----------------------------- -----------------------------
Name: Xxx Xxxxxx Name: Xxxx Xxxxxxxx
Title: Vice President Title: Vice President
Date: 9/21/09 Date: 9/16/09
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxx Xxxxxx
----------------------------- -----------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxx Xxxxxx, FSA, MAAA
Title: Vice President, Individual Title: Senior Vice President
Life Product Individual Life Product
Management
Date: 9/30/2009 Date: 9/30/2009
Last Survivor Excess Treaty -- Effective 1/01/2002
Between HLAIC and SCOR (Revios Re)
Amendment 5 -- Effective 2/11/2008
3
EXHIBIT II
RETENTION, BINDING, AND ISSUE LIMITS FOR LAST SURVIVOR TREATY
TOTAL POOL LIMITS
EFFECTIVE FEBRUARY 11, 2008
RETENTION LIMIT I ("RL I") RETENTION LIMIT II ("XX XX")
AUTOMATIC BINDING LIMIT (EXCLUDES RETENTION) AUTOMATIC BINDING LIMIT (EXCLUDES RETENTION)
AUTOMATIC ISSUE LIMIT WITH RL I AUTOMATIC ISSUE LIMIT WITH XX XX
[ILLEGIBLE] [ILLEGIBLE]
AUTOMATIC PROCESSING LIMIT WITH RL I AUTOMATIC PROCESSING LIMIT WITH XX XX
[ILLEGIBLE] [ILLEGIBLE]
FACULTATIVE OBLIGATORY AUTO BINDING LIMIT FACULTATIVE OBLIGATORY AUTO BINDING LIMIT
(EXCLUDES RETENTION) (EXCLUDES RETENTION)
Issue Age Standard -- Table F Table G -- Table P Standard -- Table F Table G -- Table P
FACULTATIVE OBLIGATORY AUTO ISSUE LIMIT WITH RL I FACULTATIVE OBLIGATORY AUTO ISSUE LIMIT WITH XX XX
[ILLEGIBLE] [ILLEGIBLE]
JUMBO LIMIT JUMBO LIMIT
Issue Age Standard -- Table F Table G -- Table P Standard -- Table F Table G -- Table P
Last Survivor Excess Treaty -- Effective 1/01/2002
Between HLAIC and SCOR (Revios Re)
Amendment 5 -- Effective 2/11/2008
4
EXHIBIT II
RETENTION, BINDING, AND ISSUE LIMITS FOR LAST SURVIVOR TREATY
TOTAL POOL LIMITS
EFFECTIVE FEBRUARY 11, 2008
[Redacted]
Last Survivor Excess Treaty -- Effective 1/01/2002
Between HLAIC and SCOR (Revios Re)
Amendment 5 -- Effective 2/11/2008
5
EXHIBIT III
EFFECTIVE FEBRUARY 11, 2008
LAST SURVIVOR LIMITS AND RETENTION WORKSHEET
(NOTE: If one life is uninsurable, treat the risk as a Single Life
risk for the purpose of limits.)
[Redacted]
Last Survivor Excess Treaty -- Effective 1/01/2002
Between HLAIC and SCOR (Revios Re)
Amendment 5 -- Effective 2/11/2008
6
AMENDMENT 6
EFFECTIVE MAY 1,2008
TO THE
AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE JANUARY 1, 2002
("AGREEMENT")
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
SCOR GLOBAL LIFE RE INSURANCE COMPANY OF TEXAS ("REINSURER")
(FORMERLY REVIOS REINSURANCE U.S. INC.)
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
reflect the addition of the Hartford Leaders VUL Joint Legacy product, for
policies issued on or after the effective date of this Amendment.
NOW, THEREFORE for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree to amend the
Agreement as follows:
I. Schedule A is deleted in its entirety and replaced with the attached
revised Schedule A; and
II. The first page of Exhibit VI is deleted in its entirety and replaced with
the attached revised first page of Exhibit VI.
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
LS Excess Treaty -- Effective 1/01/2002
Between HLAIC and SCOR
Amendment #6 -- Effective 5/01/2008
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of May 1, 2008.
SCOR GLOBAL LIFE RE INSURANCE COMPANY OF TEXAS
By: /s/ Xxxxxx X Xxxxxx Attest: /s/ [ILLEGIBLE]
------------------------------ ------------------------------
Name: Xxxxxx X Xxxxxx Xx Name: [ILLEGIBLE]
Title: Vice President, Actuarial Title: President
Services
Date: Sept 25, 2008 Date: 9-26-2008
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxx Xxxxxx, FSA, MAAA
Title: Vice President, [ILLEGIBLE] Title: Senior Vice President
Product Individual Life Product
Management
Date: 2/17/2009 Date:
LS Excess Treaty -- Effective 1/01/2002
Between HLAIC and SCOR
Amendment #6 -- Effective 5/01/2008
2
SCHEDULE A
PLANS COVERED UNDER THIS AGREEMENT
EFFECTIVE MAY 1,2008
TYPE OF BUSINESS Fully underwritten Last Survivor Plans Single Life Term
under the "Xxxxx" Program described in Exhibit IV
PLANS OF INSURANCE GENERAL FORM NO'S.
--------------------------------------------------------------------------------------------
Last Survivor Universal Life HL-14393, HL-A14407,XXX-1011
Last Survivor Variable Life HL-14623, XXX-1020
Last Survivor Variable Life II LA-1151(98), HL-15441(98)(NY)
Last Survivor SPVL HL-LSPVL97, XXX-LSPVL97
Hartford Variable Universal Life Last LA-1287(06), HL-19217(06)(NY)
Survivor
Hartford Leaders VUL Joint Legacy LA-1287(06), HL-19217(06)(NY)
RIDERS
--------------------------------------------------------------------------------------------
Four Year Term Xxxxx XX-12933, HL-A12989, XXX-1080
Estate Protection Xxxxx XX-14627, XXX-1023
Twenty-four Month Exchange Xxxxx XX-12963, XXX-1013
Single Life YRT Life Insurance Xxxxx XX-14626, XXX-1021, LA-1150(98)
Guaranteed COI Benefit Rider LA-1174(00)
Last Survivor Term Xxxxx XX-14394
Estate Tax Repeal Rider LA-1194(02), HL-15842(02), HL-15843(02)
Last Survivor Exchange Option Rider (24) LA-10022, LA-1013, HL-14395, HL-14624
Estate Tax Repeal Benefit Rider LA-1168(00), LA-1166(00), HL-11503(00)
Mortality and Expense Risk Rates Rider LA-1198(02), HL-1584(02)
DESCRIPTIONS
RIDERS WHERE ADDITIONAL PREMIUM IS DUE TO THE REINSURER:
Four Year Term Rider: This rider will pay the term insurance benefit upon
receipt of due proof of the Last Surviving Insured's death while the policy and
this rider are in force.
Estate Protection Rider: This rider will pay the term insurance benefit upon
receipt of due proof of the Last Surviving Insured's death while the policy and
this rider are in force.
Single Life YRT Life Insurance Rider: This rider will provide additional term
insurance coverage on the life of the named Insured.
Last Survivor Term Rider: This rider provides supplemental last survivor term
insurance coverage on the base insureds.
LS Excess Treaty -- Effective 1/01/2002
Between HLAIC and SCOR
Amendment #6 -- Effective 5/01/2008
3
SCHEDULE A
PLANS COVERED UNDER THIS AGREEMENT
EFFECTIVE MAY 1, 2008
RIDERS THAT ALTER THE POLICY AND IN WHICH NO ADDITIONAL PREMIUM IS PAID TO THE
REINSURER. IF A POLICY HAS THIS RIDER IT IS STILL COVERED UNDER THE AGREEMENT:
Twenty-four Month Exchange Rider: This rider allows the last survivor policy to
be exchanged for two individual policies on the life of each of the Insureds,
subject to the conditions stated in this rider. For example, this rider can be
used in case of divorce.
Estate Tax Repeal Rider: The purpose of this rider is to allow a policy to
surrender without surrender charges if the Federal Estate Tax is not in effect
in 2011. If a reinsured policy has this rider, the policy is still covered under
this Agreement, and there is no additional premium paid to the Reinsurer
specifically for the Estate Tax Rider.
Guaranteed COI Benefit Rider: This rider provides guaranteed cost of insurance
rates for the first 10 policy years. On each policy anniversary, we declare a
cost of insurance rate for a single policy year. This policy year is the policy
year 9 years from the then current policy anniversary. Thus the rider provides
that on any policy anniversary, cost of insurance rates over the next 10 years
will not exceed those provided by the rider. This rider is currently available
in only a few states and on variable life policy forms where the face amount is
at least thirty million dollars.
Last Survivor Exchange Option Rider (24): This rider allows the last survivor
policy to be exchanged for two individual policies on the life of each of the
Insureds, subject to the conditions stated in this rider. For example, this
rider can be used in case of divorce.
Estate Tax Repeal Benefit Rider: This rider will pay the account value less
indebtedness if the Federal Estate Tax Law is fully repealed by December 31,
2010 and we receive a request for this benefit amount from the insured.
Mortality and Expense Risk Rider: This rider guarantees that the mortality and
expense risk rate will be zero for years greater than and equal to 21.
LS Excess Treaty -- Effective 1/01/2002
Between HLAIC and SCOR
Amendment #6 -- Effective 5/01/2008
4
EXHIBIT VI
EFFECTIVE MAY 1, 2008
Annual per 1000 Yearly Renewable Term reinsurance rates are attached.
The rate table to be used depends on the issue date of the policy.
These rates are used for Automatic, Facultative Obligatory, and Facultative
policies.
PRODUCTS USING MULTI-CLASS RATE TABLES:
Last Survivor Variable Life
[Redacted]
Last Survivor Variable Life II
[Redacted]
Hartford Variable Universal Life Last Survivor
[Redacted]
Hartford Leaders VUL Joint Legacy
[Redacted]
PRODUCTS USING UNI-CLASS RATE TABLES:
Last Survivor Universal Life
[Redacted]
Last Survivor SPVL
[Redacted]
LS Excess Treaty -- Effective 1/01/2002
Between HLAIC and SCOR
Amendment #6 -- Effective 5/01/2008
5
AMENDMENT 7
EFFECTIVE OCTOBER 1, 2008
TO THE
AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE JANUARY 1, 2002
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
SCOR GLOBAL LIFE RE INSURANCE COMPANY OF TEXAS
(FORMERLY REVIOS REINSURANCE U.S. INC.) ("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree to amend the
Agreement by adding the following Paragraph 9 to Article II, Section A:
Except as herein amended, all other terms and conditions of the Agreement shall
remain in full force and effect and unchanged.
Last Survivor Treaty -- Effective 01/01/2002
Between HLAIC and SCOR
Amendment #7 -- Effective 10/1/2008
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of October 1, 2008.
SCOR GLOBAL LIFE RE INSURANCE COMPANY OF TEXAS
By: /s/ Xxxxxx X. Xxxxxx Attest: /s/ [ILLEGIBLE]
------------------------------ ------------------------------
Name: Xxxxxx X. Xxxxxx Xx Name: [ILLEGIBLE]
Title: Vice President Title: Vice President
Date: 4-29-09 Date: 4-30-09
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest /s/ Xxxxxxx X. Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxxxxx X. Xxxxxx
Title: Vice President, Individual Title: Senior Vice President &
Life Product Actuary
Date: 7/31/2009 Date: 7/31/2009
Last Survivor Treaty -- Effective 01/01/2002
Between HLAIC and SCOR
Amendment #7 -- Effective 10/1/2008
2
AMENDMENT 8
EFFECTIVE MARCH 1, 2009
TO THE
AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE JANUARY 1, 2002
("AGREEMENT")
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
("CEDING COMPANY")
AND
SCOR GLOBAL LIFE RE INSURANCE COMPANY OF TEXAS
(FORMERLY REVIOS REINSURANCE U.S. INC.)
("REINSURER")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Liability and
Termination articles of the Agreement to clarify liability after termination of
the Agreement for new business; and
WHEREAS, the Ceding Company and the Reinsurer wish to amend the Agreement to
terminate it for new business.
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
I. Article III, Liability, is amended to add the following Section H:
H. Following the termination of this Agreement for new business, as described
in Article XIX, the Reinsurer shall continue to be liable for:
1. All Automatic and Facultative Reinsurance in effect just before such
termination of this Agreement;
2. All Automatic Reinsurance that becomes effective after such
termination of this Agreement, on face amount increases issued on,
and reinstatements to, qualifying policies issued before such
termination of this Agreement, even if, for any such policy, no
coverage was reinsured under this Agreement before such termination;
and
Last Survivor Excess Treaty -- Effective 1/01/2002
Between HLAIC and SCOR (Revios)
Amendment 8 -- Effective 03/1/2009
1
3. All Facultative Reinsurance coverage that becomes effective after
such termination of this Agreement, on risks facultatively submitted
to the Reinsurer before such termination.
II. Article XIX, Termination, is deleted in its entirety and replaced with the
following:
A. The Ceding Company and the Reinsurer may terminate this Agreement as it
applies to the new business of each by giving (90) ninety days' written notice
of termination. The day the notice is deposited in the mail addressed to the
Home Office, or to an Officer of each party, will be the first day of the (90)
ninety-day period. In addition, this Agreement may be terminated immediately for
the acceptance of new reinsurance by either party if one of the parties becomes
insolvent as described in Article XVI.
B. During the (90) ninety-day period, this Agreement will continue to be in
force between the terminating parties.
C. Following termination of this Agreement for new business, the terminating
parties shall remain liable in accordance with Article III of this Agreement.
III. This Agreement will terminate for new business effective March 1, 2009,
Except as herein amended, all other terms and conditions of the Agreement shall
remain unchanged and in full force and effect.
Last Survivor Excess Treaty -- Effective 1/01/2002
Between HLAIC and SCOR (Revios)
Amendment 8 -- Effective 03/1/2009
2
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed this Amendment in duplicate on the dates indicated
below, with an effective date of March 1, 2009.
SCOR GLOBAL LIFE RE INSURANCE COMPANY OF TEXAS
By: /s/ Xxxxxx X. Xxxxxx Attest: /s/ [ILLEGIBLE]
------------------------------ ------------------------------
Name: Xxxxxx X. Xxxxxx Xx Name: [ILLEGIBLE]
Title: Vice President Title: Vice President
Date: 8-21-09 Date: 9/16/09
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxxxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxxxxx Xxxxxx
Title: Vice President, Individual Title: Senior Vice President
Life Product
Date: 9/24/2009 Date: 9/24/09
Last Survivor Excess Treaty -- Effective 1/01/2002
Between HLAIC and SCOR (Revios)
Amendment 8 -- Effective 03/1/2009
3
AMENDED AND RESTATED AMENDMENT 9
EFFECTIVE JUNE 1, 2005
TO THE
AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE JANUARY 1, 2002
("AGREEMENT")
BETWEEN
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY ("CEDING COMPANY")
AND
SCOR GLOBAL LIFE REINSURANCE COMPANY OF TEXAS
(FORMERLY REVIOS REINSURANCE U.S. INC.)
("REINSURER")
RECITALS
WHEREAS, the Ceding Company and the Reinsurer entered into Amendment 9:
WHEREAS, the Ceding Company and the Reinsurer wish to revise the effective date
to June 1, 2005.
NOW, THEREFORE for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
1. The above recitals are true and accurate and are incorporated
herein.
2. Article II, Section A, Paragraph 2 is deleted in its entirety and
replaced with the following:
Last Survivor Excess Treaty -- Effective 01/01/2002
Between HLAIC and SCOR (Revios)
Amendment 9 -- Effective 06/01/2005 (Amended and Restated)
1
3. Except as herein amended, all other terms and conditions of the
Agreement shall remain unchanged.
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, hereby executed this Amendment in duplicate on the dates
indicated below, with an effective date of June 1, 2005.
SCOR GLOBAL LIFE RE INSURANCE COMPANY OF TEXAS
By: /s/ Xxx Xxxxxx Attest: /s/ Xxxxx Xxxxxxx
------------------------------ ------------------------------
Name: Xxx Xxxxxx Name: Xxxxx Xxxxxxx
Title: Vice President -- Pricing Title: Vice President -- Treaty
Date: August 8, 2011 Date: August 9, 2011
HARTFORD LIFE AND ANNUITY LIFE INSURANCE COMPANY
By: /s/ Xxxx Xxxxxxx Attest: /s/ Xxxxxxx X. Xxxxxx
------------------------------ ------------------------------
Name: Xxxx Xxxxxxx Name: Xxxxxxx X. Xxxxxx
Title: Assistant Vice President & Title: Senior Vice President &
Actuary Actuary
Date: 8/11/2011 Date: 8/11/2011
Last Survivor Excess Treaty -- Effective 01/01/2002
Between HLAIC and SCOR (Revios)
Amendment 9 -- Effective 06/01/2005 (Amended and Restated)
2
