Amendment #1
to the
AUTOMATIC
YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE December 15, 2003
Between
PRUCO LIFE INSURANCE COMPANY
(THE COMPANY)
And
SCOTTISH RE (U.S.), INC.
(THE REINSURER)
The parties hereby agree to the following:
1. Section 18, CLAIMS, shall be replaced by the following:
a. NOTIFICATION OF CLAIMS. THE COMPANY will notify THE REINSURER as soon as reasonably possible after THE COMPANY receives a
claim for a policy reinsured under this Agreement. In addition, THE COMPANY will provide THE REINSURER with
identification of contestable claims along with the relevant documentation, including but not limited to, claim proofs,
for all claims incurred within the first two policy years and on incontestable policies where THE REINSURER's net amount
at risk is in excess of $25,000.
After THE COMPANY has received all proper claim proofs and paid the claim, THE COMPANY will notify THE REINSURER that a
claim is due under this Agreement. THE COMPANY will send to THE REINSURER an itemized statement of amounts due THE
COMPANY under this Agreement along with all relevant information with respect to the claim, including the claim proofs
not already provided. However, for incontestable claims, claim proofs will not be required by THE REINSURER if THE
REINSURER's net amount at risk is less than or equal to $25,000 and THE COMPANY has paid the claim. In such cases, THE
COMPANY will provide THE REINSURER with the cause of death.
b. AMOUNT AND PAYMENT OF BENEFITS As soon as THE REINSURER receives proper claim notice and any required proof of the claim,
reinsurance benefits are due and payable to THE COMPANY. THE REINSURER is bound by THE COMPANY's decisions regarding
settlement of all claims. Payment of the benefits by THE REINSURER will be made in a single sum, regardless of THE
COMPANY's settlement options. The maximum benefit payable to THE COMPANY under each reinsured policy is the amount
specifically reinsured with THE REINSURER. In the event that THE REINSURER has not paid reinsurance benefits to THE
COMPANY within sixty days of the due date, THE COMPANY may charge interest on the amount due at an interest rate equal
to the London Interbank Offer Rate, U.S. denomination-Fixed Three-month, (LIBOR), as of when the payment was due. In
addition, in the event that reinsurance benefits are sixty days past due, THE COMPANY may recapture the reinsurance as
described in Section 21.
c. LIVING NEEDS BENEFITS. Living Needs Benefit claims will be administered in the same way as a death claim and Living Needs
Benefit claims, both full and partial, will be specifically identified as such on the lists of claims paid.
d. CLAIM SETTLEMENTS. THE REINSURER agrees that THE COMPANY will use its standard claim practices and guidelines, as updated
from time to time, in the adjudication of all claims on policies reinsured under this Agreement. THE REINSURER has the
right to inspect, at the COMPANY's offices, the COMPANY's written claims practices and guidelines. Once THE REINSURER
has been notified of a contestable claim in accordance with subsection a. of this 'CLAIMS' section, THE REINSURER will
have two business days to review the information and offer its advice to THE COMPANY as to whether the claim should be
paid or denied. If there is a disagreement between THE COMPANY and THE REINSURER as to whether THE COMPANY should pay
or deny the claim, THE COMPANY will make a reasonable effort to secure mutual agreement between the parties. Any advice
offered by THE REINSURER will not be binding on THE COMPANY.
THE COMPANY will advise THE REINSURER of any intention to contest a claim involving a policy reinsured hereunder and
provide THE REINSURER with copies of all relevant documents. THE REINSURER may choose not to participate in the contest
of a contestable claim. THE REINSURER will have 10 business days to communicate its decision whether to participate in
the contested claim. If THE REINSURER chooses not to participate, it will discharge its liability by immediately paying
to THE COMPANY the full amount of THE REINSURER's liability on the portion of the policy reinsured under this Agreement,
regardless of any subsequent outcome of such contest.
f. CLAIM EXPENSES. THE REINSURER will pay its share of any interest paid by THE COMPANY on any claim payment. In addition,
THE REINSURER will pay its share of the unusual expense of THE COMPANY of investigating and adjudicating contestable
claims, including investigation expenses and compensation expenses charged by THE COMPANY's Special Investigation Unit.
Such Special Investigation Unit expenses will not increase more than 5% per year of the current hourly rate ($39 for
2005) of contestable claim investigation. The term "unusual expense" shall mean all expenses of THE COMPANY associated
with the contestable claim other than normal and customary claim administration expenses that are commonly incurred with
the normal and customary settlement of non-contestable claims. Also, expenses incurred in connection with a dispute or
contest arising out of conflicting claims of entitlement to policy proceeds or benefits that THE COMPANY admits are
payable are not a claim expense under this Agreement. Notwithstanding the above, THE REINSURER will not be liable for
any portion of interest or unusual expenses for any period of time after THE REINSURER has notified THE COMPANY of its
decision not to participate in a contested, compromised or litigated claim.
g. EXTRACONTRACTUAL DAMAGES. In no event will THE REINSURER participate in extra-contractual damages or penalties that are
awarded against THE COMPANY as a result of an act, omission or course of conduct committed by THE COMPANY in connection
with the reinsurance or a claim covered under this Agreement. The parties recognize that circumstances may arise in
which equity would require THE REINSURER, to the extent permitted by law, to share proportionately in certain assessed
damages. Such circumstances are difficult to define in advance, but would generally be those situations in which THE
REINSURER was an active party and agreed in writing with the act or course of conduct of THE COMPANY that ultimately
resulted in the assessment of damages. If, however, extra-contractual damages are awarded solely or partly as a result
of THE COMPANY having contested the claim, and THE REINSURER had agreed to participate in that contest, then THE
REINSURER will reimburse THE COMPANY for its share of the portion of the damages awarded as a result of THE COMPANY
having contested the claim. The Reinsurer will not be responsible for reimbursing THE COMPANY for the portion of the
damages awarded for any other reason. When the damages awarded are shared, THE COMPANY and THE REINSURER would share
such damages assessed in equitable proportions.
Y-MPVUL-2003-XXXX(ING)-P-PLAZ-1
SRe Treaty #1357 3
In witness of the above, THE COMPANY and THE REINSURER have by their respective officers executed and delivered this Agreement in
duplicate on the dates indicated below, with an effective date of April 11, 2005.
PRUCO LIFE INSURANCE COMPANY SCOTTISH RE (U.S.), INC.
By: ____________________________ By: ______________________________
Title: ____________________________ Title: ______________________________
Date: ____________________________ Date: ______________________________
By: ____________________________ By: ______________________________
Title: ____________________________ Title: ______________________________
Date: ____________________________ Date: ______________________________
Y-MPVUL-2003-XXXX(ING)-P-PLAZ-1
SRe Treaty #1357 3
Amendment #2
to the
AUTOMATIC
YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE December 15, 2003
Between
PRUCO LIFE INSURANCE COMPANY
(THE COMPANY)
And
SCOTTISH RE (U.S.), INC.
(THE REINSURER)
The parties hereby agree to the following:
1. Section 18, CLAIMS, shall be replaced by the following:
a. NOTIFICATION OF CLAIMS. THE COMPANY will notify THE REINSURER as soon as reasonably possible after THE
COMPANY receives a claim for a policy reinsured under this Agreement. In addition, THE COMPANY will
provide THE REINSURER with identification of contestable claims along with the relevant
documentation, including but not limited to, claim proofs, for all claims incurred within the first
two policy years and on incontestable policies where THE REINSURER's net amount at risk is in
excess of $25,000.
After THE COMPANY has received all proper claim proofs and paid the claim, THE COMPANY will notify
THE REINSURER that a claim is due under this Agreement. THE COMPANY will send to THE REINSURER an
itemized statement of amounts due THE COMPANY under this Agreement along with all relevant
information with respect to the claim, including the claim proofs not already provided. However,
for incontestable claims, claim proofs will not be required by THE REINSURER if THE REINSURER's net
amount at risk is less than or equal to $25,000 and THE COMPANY has paid the claim. In such cases,
THE COMPANY will provide THE REINSURER with the cause of death.
b. AMOUNT AND PAYMENT OF BENEFITS As soon as THE REINSURER receives proper claim notice and any required
proof of the claim, reinsurance benefits are due and payable to THE COMPANY. THE REINSURER is
bound by THE COMPANY's decisions regarding settlement of all claims. Payment of the benefits by
THE REINSURER will be made in a single sum, regardless of THE COMPANY's settlement options. The
maximum benefit payable to THE COMPANY under each reinsured policy is the amount specifically
reinsured with THE REINSURER. In the event that THE REINSURER has not paid reinsurance benefits to
THE COMPANY within sixty days of the due date, THE COMPANY may charge interest on the amount due at
an interest rate equal to the London Interbank Offer Rate, U.S. denomination-Fixed Three-month,
(LIBOR), as of when the payment was due. In addition, in the event that reinsurance benefits are
sixty days past due, THE COMPANY may recapture the reinsurance as described in Section 21.
c. LIVING NEEDS BENEFITS. Living Needs Benefit claims will be administered in the same way as a death
claim and Living Needs Benefit claims, both full and partial, will be specifically identified as
such on the lists of claims paid.
d. CLAIM SETTLEMENTS. THE REINSURER agrees that THE COMPANY will use its standard claim practices and
guidelines, as updated from time to time, in the adjudication of all claims on policies reinsured
under this Agreement. THE REINSURER has the right to inspect, at the COMPANY's offices, the
COMPANY's written claims practices and guidelines. Once THE REINSURER has been notified of a
contestable claim in accordance with subsection a. of this 'CLAIMS' section, THE REINSURER will
have two business days to review the information and offer its advice to THE COMPANY as to whether
the claim should be paid or denied. If there is a disagreement between THE COMPANY and THE
REINSURER as to whether THE COMPANY should pay or deny the claim, THE COMPANY will make a
reasonable effort to secure mutual agreement between the parties. Any advice offered by THE
REINSURER will not be binding on THE COMPANY.
THE COMPANY will advise THE REINSURER of any intention to contest a claim involving a policy
reinsured hereunder and provide THE REINSURER with copies of all relevant documents. THE REINSURER
may choose not to participate in the contest of a contestable claim. THE REINSURER will have 10
business days to communicate its decision whether to participate in the contested claim. If THE
REINSURER chooses not to participate, it will discharge its liability by immediately paying to THE
COMPANY the full amount of THE REINSURER's liability on the portion of the policy reinsured under
this Agreement, regardless of any subsequent outcome of such contest.
f. CLAIM EXPENSES. THE REINSURER will pay its share of any interest paid by THE COMPANY on any claim
payment. In addition, THE REINSURER will pay its share of the unusual expense of THE COMPANY of
investigating and adjudicating contestable claims, including investigation expenses and
compensation expenses charged by THE COMPANY's Special Investigation Unit. Such Special
Investigation Unit expenses will not increase more than 5% per year of the current hourly rate ($39
for 2005) of contestable claim investigation. The term "unusual expense" shall mean all expenses
of THE COMPANY associated with the contestable claim other than normal and customary claim
administration expenses that are commonly incurred with the normal and customary settlement of
non-contestable claims. Also, expenses incurred in connection with a dispute or contest arising out
of conflicting claims of entitlement to policy proceeds or benefits that THE COMPANY admits are
payable are not a claim expense under this Agreement. Notwithstanding the above, THE REINSURER
will not be liable for any portion of interest or unusual expenses for any period of time after THE
REINSURER has notified THE COMPANY of its decision not to participate in a contested, compromised
or litigated claim.
g. EXTRACONTRACTUAL DAMAGES. In no event will THE REINSURER participate in extra-contractual damages or
penalties that are awarded against THE COMPANY as a result of an act, omission or course of conduct
committed by THE COMPANY in connection with the reinsurance or a claim covered under this
Agreement. The parties recognize that circumstances may arise in which equity would require THE
REINSURER, to the extent permitted by law, to share proportionately in certain assessed damages.
Such circumstances are difficult to define in advance, but would generally be those situations in
which THE REINSURER was an active party and agreed in writing with the act or course of conduct of
THE COMPANY that ultimately resulted in the assessment of damages. If, however, extra-contractual
damages are awarded solely or partly as a result of THE COMPANY having contested the claim, and THE
REINSURER had agreed to participate in that contest, then THE REINSURER will reimburse THE COMPANY
for its share of the portion of the damages awarded as a result of THE COMPANY having contested the
claim. The Reinsurer will not be responsible for reimbursing THE COMPANY for the portion of the
damages awarded for any other reason. When the damages awarded are shared, THE COMPANY and THE
REINSURER would share such damages assessed in equitable proportions.
Y-MPVUL-2003-XXXX(ING)-M-PLAZ-2
SRe Treaty #1358 1
In witness of the above, THE COMPANY and THE REINSURER have by their respective officers executed and delivered
this Agreement in duplicate on the dates indicated below, with an effective date of April 11, 2005.
PRUCO LIFE INSURANCE COMPANY SCOTTISH RE (U.S.), INC.
By: ____________________________ By: ______________________________
Title: ____________________________ Title: ______________________________
Date: ____________________________ Date: ______________________________
By: ____________________________ By: ______________________________
Title: ____________________________ Title: ______________________________
Date: ____________________________ Date: ______________________________
Y-MPVUL-2003-XXXX(ING)-M-PLAZ-2
SRe Treaty #1358 1
