0844-00-08
AMENDMENT
to the
FACULTATIVE AGREEMENT EFFECTIVE SEPTEMBER 1, 1991
between
CUNA MUTUAL LIFE INSURANCE COMPANY, WAVERLY, IOWA
(hereinafter called the "Ceding Company")
and
RGA REINSURANCE COMPANY, ST. LOUIS, MISSOURI
(hereinafter called the "Reinsurer")
THIS AMENDMENT IS EFFECTIVE JANUARY 1, 2002
This Amendment is made as of the 1st day of January, 2002 (the "Effective
Date") by and between the Ceding Company and the Reinsurer. The parties hereto
desire to amend the Agreement as hereinafter provided.
I. POLICY FEES
All references to policy fees as shown on Exhibit C have been removed from
this Agreement.
II. SELF-ADMINISTRATION BASIS
Administration of this Agreement will now change to a self-administered
basis. The attached Article IV, Premium Administration is hereby added to
this Agreement replacing Article IV, Premium Administration (effective
September 1, 1991). Exhibit D - Sample Statement Specifications and
Exhibit E - Sample Policy Exhibit are also added to this Agreement.
III. All provisions of the Facultative Agreement not specifically modified
herein remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate
as follows:
CUNA MUTUAL LIFE INSURANCE COMPANY
By: /s/ Xxxx Xxxxx By:/s/ Xxxxxxx X. Xxxxx
--------------------------- --------------------------
Title: Asst Vice President Title: Assistant Secretary
--------------------------- --------------------------
Date: 1/2/02 Date: 1/7/07
--------------------------- --------------------------
RGA REINSURANCE COMPANY
By: /s/ Xxxxxx Xxxxx
---------------------------
Title: Vice President
---------------------------
Date: 12/21/01
---------------------------
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ARTICLE IV - PREMIUM ADMINISTRATION
(EFFECTIVE JANUARY 1, 2002)
1. ACCOUNTING PERIOD AND PREMIUM DUE
---------------------------------
The Ceding Company will submit accounts to the Reinsurer, for reporting new
business, alterations, terminations, renewals, claims, and premium due.
2. ACCOUNTING ITEMS
----------------
The accounts will contain a list of premiums due for the current accounting
period, explain the reason for each premium payment, show premium subtotals
adequate to use for premium accounting, including first year and renewal
year premiums and allowances. The account information should provide the
ability to evaluate retention limits, premium calculations and to establish
reserves.
3. REINSURANCE ADMINISTRATION REQUIREMENTS
---------------------------------------
Reinsurance Administration Requirements are as shown in Exhibits D and E.
4. PAYMENT OF BALANCES
-------------------
The Ceding Company will pay any balance due the Reinsurer, at the same time
as the account is rendered, but in all cases, by the Accounting and Premium
Due frequency as shown below. The Reinsurer will pay any balance due the
Ceding Company, at the same time as the account is confirmed, however, at
the latest, within thirty (30) days after receipt of the statement of
account. Should the Reinsurer be unable to confirm the account in its
entirety, the confirmed portion of the balance will be paid immediately. As
soon as the account has been fully confirmed, the difference will be paid
immediately by the debtor. All balances not paid within thirty (30) days of
the due date shown on the statement will be in default.
Accounting Period: Monthly
Premium Due: Monthly in Arrears (for UL and VUL Plans)
Annually in Advance (all Plans other than
UL and VUL)
5. BALANCES IN DEFAULT
-------------------
The Reinsurer will have the right to terminate this Agreement, when
balances are in default, by giving ninety (90) days written notice of
termination to the Ceding Company. As of the close of the last day of this
ninety (90) day notice period, the Reinsurer's liability for all risks
reinsured under this Agreement will terminate. The first day of this ninety
(90) day notice of termination, resulting from default as described in
paragraph four of this Article, will be the day the notice is received in
the mail by the Ceding Company, or if the mail is not used, the day it is
delivered to the Ceding Company. If all balances in default are received
within the ninety (90) day time period, the Agreement will remain in
effect. The interest payable on balances in default is stipulated as
follows:
The Reinsurer reserves the right to charge interest at the Prime
Rate plus 2% as stated in the Wall Street Journal on the 1st
business day in January prior to the due date of the premium when:
a. Renewal premiums are not paid within sixty (60) days of the
due date.
b. Premiums for new business are not paid within one hundred
twenty (120) days of the date the policy is issued.
6. FLUCTUATIONS IN EXCHANGE RATES
------------------------------
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EXHIBIT D - SAMPLE STATEMENT SPECIFICATIONS
(EFFECTIVE JANUARY 1, 2002)
The following information should appear on each Statement and Inforce listing:
o Name of the Insured(s)
o Date of Birth of the Insured(s)
o The Issue Age of each Insured(s)
o The Sex of the insured(s)
o The Insured(s) Country of Residence
o Underwriting Classification (i.e. Preferred, Standard, etc.)
o Smoking Class (i.e. Smoker, Non Smoker, etc.)
o Indication if Business is Facultative or Automatic
o Indication if Business is Risk Premium or Coinsurance
o Policy Number(s)
o Plan Code(s) / Kind Code(s): Cession Series
o Original Face Amount of the Policy(s)
o Amount(s) Ceded to the Reinsurer
o Amount of Premium being Paid; separated for Supplementary
Benefits.
o The Amount of any Reinsurance Premium Allowances
o Any Extra Premiums concerned. Example: $5 / 1000 / 5 YRS
o Effective Date and Duration of any Policy(s) Change,
Reissue, or Termination
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EXHIBIT E - SAMPLE POLICY EXHIBIT
(EFFECTIVE JANUARY 1, 2002)
POLICY SUMMARY NUMBER OF REINSURANCE
-------------- --------- -----------
CLASSIFICATION POLICIES AMOUNT
-------------- --------- -----------
Inforce as of Last Report 878 $410,220,973
New Issues 2 $516,666
Reinstatements 3 $483,334
Increases $500,000
Decreases - Still Inforce $133,332
Rollover - In 0 $0
Deduct By:
----------
Death 0 $0
Surrender 1 $250,000
Lapse 4 $1,000,001
Conversion - Out 0 $0
Decreases - Termination 3 $299,999
Inactive - Pending 0 $0
Not Taken 0 $0
Inforce as of Current Report 875 $410,037,641
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