Exhibit (g)(2)
AMENDMENT TO AUTOMATIC YRT AGREEMENT
("AMENDMENT")
Reference is made to the Automatic YRT Reinsurance Agreement, dated effective
June 29, 2001 and identified as Treaty Number 1795 (herein the "Agreement"), by
and between IDS Life Insurance Company and [name of reinsurance company]. The
undersigned parties hereby agree that the Agreement shall be and is hereby
amended as follows:
1. With respect to any insurance policy identified in Exhibit B of the
Agreement issued by Ceding Company on or after January 1, 2005, or
any covered rider on such policy (herein a "New Policy"),
Reinsurer's share of the total automatic pool, as described in
Exhibit B, Section B.7, is increased from [percentage] to
[percentage]. With respect to any New Policy, the [percentage]
component of Reinsurer's automatic pool share shall be referred to
as "Base Share" and the additional [percentage] component shall be
referred to as "Incremental Share". For purposes of this Amendment,
a New Policy shall be deemed to include any insurance policy
identified in Exhibit B of the Agreement that either (i) has an
issue date or is applied for on or after January 1, 2005, or (ii)
goes into effect on or after January 1, 2005 even if backdated to
reflect an issue date prior to January 1, 2005, including any
covered rider on such policy. Any policy issued by the Ceding
Company and originally covered by the Agreement prior to January 1,
2005 is considered an "Existing Policy", including any covered rider
on such policy whether issued before or after January 1, 2005.
Existing Policy also includes any conditional receipt or temporary
insurance provision if the policy is applied for prior to January 1,
2005 until such time as the policy is issued or declined, but only
to the extent coverage for such risk is provided for under the terms
of the Agreement.
2. With respect to Incremental Share on any New Policy ceded on an
automatic basis, YRT reinsurance premiums for the Base Plan,
Survivor Term Rider, and Four-Year Term Rider will be frasierized
joint premiums based on the individual ALB Annual Cost of Insurance
(COI) rates, attached to Exhibit D of the Agreement, less the
following allowances:
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Duration I Durations 2-20 Durations 21 +
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2 Preferred [percentage] [percentage] [percentage]
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Preferred, Standard Non-Tobacco [percentage] [percentage] [percentage]
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Preferred, Tobacco [percentage] [percentage] [percentage]
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2 Standard Non-Tobacco [percentage] [percentage] [percentage]
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Standard Non-Tobacco, Tobacco [percentage] [percentage] [percentage]
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2 Tobacco [percentage] [percentage] [percentage]
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After allowances are applied, YRT reinsurance premiums are subject
to a minimum rate of [dollar amount] per [dollar amount] of
reinsured risk amount in years 2+. Reinsurance premiums are payable
until the younger insured attains age 100 and Reinsurer is not
liable for any claims occurring after the younger insured attains
age 100. Reinsurance premium rates and allowances for the Base Share
and the Policy Split Option Rider on any New Policy shall remain as
stated in Exhibit D of the Agreement. Reinsurance premiums rates and
allowances for Existing Policies and facultative cessions (whether
for a New Policy or Existing Policy) shall also remain as stated in
Exhibit D of the Agreement.
3 Notwithstanding anything to the contrary in Section 6.5 of the
Agreement, the Reinsurer may raise reinsurance premium rates for the
Incremental Share of New Policies ceded on an automatic basis. In
the event Reinsurer raises reinsurance premium rates for the
Incremental Share of New
Policies ceded on an automatic basis, Ceding Company shall have the
right to recapture the Incremental Share affected by the rate
increase. Reinsurer shall provide the Ceding Company with a minimum
of sixty (60) days written notice of its intent to raise reinsurance
premium rates for the Incremental Share of in force New Policies,
and Ceding Company shall be allowed ninety (90) days from the date
of receiving Reinsurer's rate increase notice in which to elect its
option to recapture. [terms of rate guarantee redacted].
4. Any change, reinstatement, increase, replacement, or conversion of
an Existing Policy following January 1, 2005 shall be treated and
covered in the manner provided for in the Agreement without regard
to the change in Reinsurer's automatic pool share and allowances as
specified in this Amendment. Single life policies resulting from the
exercise of the Split Option Rider on an Existing Policy shall be
considered Existing Policies.
5. Exhibit B, Section B.8, relating to International Clients shall be
deleted in its entirety and replaced with the following:
"International Clients are defined and will be underwritten as
described in the Ceding Company's "Guidelines for Underwriting
International Clients", a copy of which has been provided to the
Reinsurer. The Ceding Company will promptly notify the Reinsurer of
any proposed material changes in its international client
guidelines. This Agreement will not extend to policies issued
pursuant to such changes unless the Reinsurer has consented to
accept policies subject to such changes."
Capitalized terms not otherwise defined herein have the meaning ascribed to them
as in the Agreement. Except as expressly amended above, all other terms of the
Agreement, together with all exhibits and attachments thereto, remain in full
force and effect. This Amendment is effective immediately upon execution by both
of the undersigned parties. This Amendment is made in duplicate and executed
below by authorized representatives of both parties.
IDS LIFE INSURANCE COMPANY [NAME OF REINSURANCE COMPANY]
By: /s/ Xxxxxxx X. Xxxxxxxx By: [signature]
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(signature) (signature)
Xxxxxxx X. Xxxxxxxx [name]n
(print or type name) (print or type name)
Title: V P - Insurance Title: [title]
Date: 12/29/04 Date: Dec 28, 2004
Attest: /s/ Xxxxxxx X. Xxxxxxxx Attest: [signature]
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(signature) (signature)
Title: Appointed Actuary Title: [title]