REINSURANCE
AGREEMENT
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
TABLE OF CONTENTS
PAGE
----
Reinsurance Coverage 1
Automatic and Facultative Reinsurance 3
Placing Reinsurance in Effect 4
Computation of Reinsurance Premiums 5
Payment of Reinsurance Premiums 6
Settlement of Claims 7
Experience Refunds 8
Premium Tax Reimbursement 9
Policy changes 9
Reinstatements 9
Expenses 9
Reductions 9
Inspection of Records 10
Increase in Limit of Retention 11
Oversights 12
Arbitration 13
Insolvency 14
Parties to Agreement 15
Execution and Duration of Agreement 16
Policy Forms Subject to Reinsurance Hereunder Appendix I
Retention Limits of the REINSURED Schedule A
Maximum Amount which the REINSURED may cede
Automatically Schedule B
Administrative Forms Schedule C
Reinsurance Premium Rates Schedule D
REINSURANCE AGREEMENT
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
of
Worcester, Massachusetts,
hereinafter referred to as the "REINSURED", and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
of
Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN".
REINSURANCE COVERAGE
1. On the basis hereinafter stated, one-third of the REINSURED'S excess
of individual ordinary Life, Waiver of Premium Disability, and Accidental Death
insurance issued on the policy forms listed in Appendix I shall be reinsured
with the LINCOLN automatically in accordance with the REINSURED'S individual
ordinary underwriting rules or shall be submitted to the LINCOLN on a
facultative basis.
2. Subject to the prior approval of the LINCOLN in the case of
facultative reinsurance, the liability of the LINCOLN shall begin simultaneously
with that of the REINSURED. In no event shall the reinsurance be in force and
binding unless the insurance issued directly by the REINSURED is in force and
unless the issuance and delivery of such insurance constituted the doing
business in a jurisdiction in which the REINSURED was properly licensed.
3. In the first policy year, the amount at risk is defined to be the
amount of insurance reinsured under this agreement. In all subsequent policy
years, the amount at risk shall be the amount of insurance reinsured under this
agreement less one-third of the accumulated policy value on the entire policy at
the end of the prior policy year for automatic reinsurance and less all of the
accumulated policy value for facultative reinsurance and any exchanges.
4. If the face amount of the policy changes, the portion reinsured
hereunder shall continue to be determined as described in paragraph 3 of this
article. If the face amount increases subject to the approval of the REINSURED,
provision of the "AUTOMATIC AND FACULTATIVE REINSURANCE" article hereof shall
apply to the increase in reinsurance hereunder. If the face amount increases and
such increase is not subject to
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the REINSURED'S approval, the LINCOLN shall accept automatically increases in
reinsurance arising from such increases in the face amount.
5. Reinsurance of Disability and Accidental Death insurance shall
follow the original forms of the REINSURED.
6. Accidental Death reinsurance in amounts less than $10,000 or Life
reinsurance in amounts less than the amount at risk upon $25,000 of insurance
shall not be placed in effect under this agreement. If Accidental Death
reinsurance is subsequently reduced below $10,000, such reinsurance shall
terminate.
7. Whenever the amount of Life reinsurance under this agreement on any
one policy is less than $10,000, Life and Disability reinsurance shall
terminate. The amount of reinsurance under this agreement shall otherwise be
maintained in force without reduction so long as the amount of insurance carried
by the REINSURED on the life remains in force without reduction, except as
provided in the "PAYMENT OF REINSURANCE PREMIUMS" and "INCREASE IN LIMIT OF
RETENTION" articles.
AUTOMATIC AND FACULTATIVE REINSURANCE
1. When the REINSURED retains its limit of retention, as shown in
Schedule A, it may cede and the LINCOLN shall accept automatically reinsurance
of Life, Disability, and Accidental Death insurance in amounts not to exceed
those shown in Schedule B.
2. If the following conditions are met, reinsurance may be ceded
automatically hereunder.
(a) The REINSURED shall retain its limit of retention except as
provided in Schedule B.
(b) The sum of the amount of insurance already in force on that life
in the REINSURED and the amount applied for from the REINSURED
on the current application shall not exceed the sum of the
appropriate automatic limit shown in Schedule B and the
REINSURED'S maximum limit of retention for the mortality class,
plan of insurance, and age at issue on the current application.
(c) The sum of the amount of insurance already in force on the life
and the amount applied for currently, in all companies, shall
not exceed the following amounts:
LIFE INSURANCE
AGES WAIVER OF PREMIUM ACCIDENTAL DEATH
---- ----------------- ----------------
0-65 $7,500,000 $300,000
66-80 $3,500,000 None
(d) The REINSURED has not made facultative application for
reinsurance of the current application.
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(e) The policy is not a conversion or an exchange of a
previously-issued policy; an "exchange" is any replacement of a
policy for which the REINSURED does not obtain the same
underwriting information on the replacing policy which it would
obtain in the absence of the replaced policy.
3. Applications for reinsurance which the REINSURED does not care to
cede to the LINCOLN automatically or which may not be so ceded under the terms
hereof shall be submitted for reinsurance upon a facultative basis.
4. Unless additional coverage is provided in Schedule B, the LINCOLN
shall have no liability under facultative applications for reinsurance unless
the LINCOLN has given its final approval of the submission.
PLACING REINSURANCE IN EFFECT
1. To effect reinsurance, the REINSURED shall, within fifteen working
days after the end of each month mail to the LINCOLN a report in substantial
accord with Schedule C.
2. The REINSURED shall send to the LINCOLN within fifteen working days
after the end of each quarter reports in substantial accord with Schedule C.
3. When the REINSURED submits a risk to the LINCOLN for reinsurance
upon a facultative basis, a facultative application for such reinsurance shall
be made on a form in substantial accord with Schedule C. Copies of the original
applications, all medical examinations, microscopical reports, inspection
reports, and all other information which the REINSURED may have pertaining to
the insurability of the risk shall accompany the application. Upon receipt of
such application, the LINCOLN shall immediately examine the papers and shall
notify the REINSURED of its underwriting action as soon as possible.
4. All offers of reinsurance made by the LINCOLN under this agreements
shall, unless otherwise terminated by the LINCOLN, automatically terminate on
the earliest of (a) the date the LINCOLN receives notice from the REINSURED of
its acceptance of the offer, (b) the date the LINCOLN receives notice from the
REINSURED of its withdrawal of its application, and (c) the later of (i) the
date 120 days after the date the offer was made by the LINCOLN and (ii) the date
specified in the LINCOLN'S approval of written request from the REINSURED to
grant an extension of the offer.
3
COMPUTATION OF REINSURANCE PREMIUMS
1. The premium to be paid to the LINCOLN for Life reinsurance shall be
the sum of:
(a) the appropriate premium rate from the schedule of premiums in
Schedule D applied to the appropriate amount at risk reinsured;
plus
(b) any flat extra premium charged the insured on the face amount
initially reinsured less total allowances in the amount of 85%
of any first year permanent flat extra premium and 10% of any
renewal flat extra premium.
2. The portions of the reinsurance premiums described in the above
subparagraphs of the preceding paragraph shall hereinafter be referred to as the
basic premium.
3. The premium charged the REINSURED for increases in reinsurance
hereunder described in paragraph 4 of the "REINSURANCE COVERAGE" article hereof
shall be computed using the age and date of issue of the policy if the increase
in face amount is not subject to approval of the REINSURED and using the age at
and date of the increase if the increase in face amount is subject to the
REINSURED'S approval.
4. For technical reasons relating to the uncertain status of deficiency
reserve requirements by the various state insurance departments, the Life
reinsurance rates cannot be guaranteed for more than one year. On all
reinsurance ceded at these rates, however, the LINCOLN anticipates continuing to
accept premiums on the basis of the rates shown in Schedule D.
5. The premium to be paid the LINCOLN for reinsurance of Supplemental
Benefits shall be as shown in Schedule D.
PAYMENT OF REINSURANCE PREMIUMS
1. The REINSURED shall remit with the report specified as Schedule C,
the premiums due the LINCOLN. Premiums for reinsurance hereunder are payable at
the Home Office of the LINCOLN and shall be paid on an annual basis without
regard to the manner of payment stipulated in the policy issued by the
REINSURED.
2. The payment of reinsurance premiums in accordance with the
provisions of the preceding paragraph shall be a condition precedent to the
liability of the LINCOLN under reinsurance covered by this agreement. In the
event that reinsurance premiums are not paid as provided in the preceding
paragraph, the LINCOLN shall have the right to terminate the reinsurance under
all policies having reinsurance premiums in arrears. If the LINCOLN elects to
exercise its right of termination, it shall give the REINSURED thirty days
notice of its intention to terminate such reinsurance. If all reinsurance
premiums in arrears, including any which may become in arrears during the
thirty-day period, are not paid before the expiration of such period, the
LINCOLN shall thereupon be relieved of future liability under all reinsurance
for which premiums remain unpaid. Policies on which reinsurance premiums
subsequently fall due will automatically terminate if reinsurance premiums are
not paid when due as provided in paragraph 1 of this article. The reinsurance so
terminated may be reinstated at any time within sixty
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days of the date of termination upon payment of all reinsurance premiums in
arrears; but, in the event of such reinstatement, the LINCOLN shall have no
liability in connection with any claims incurred between the date of termination
and the date of reinstatement of the reinsurance. The LINCOLN'S right to
terminate reinsurance as herein provided shall be without prejudice to its right
to collect premiums for the period reinsurance was in force prior to the
expiration of the thirty-day notice period.
SETTLEMENT OF CLAIMS
1. The REINSURED shall give the LINCOLN prompt notice of any claim
submitted on a policy reinsured hereunder and prompt notice of the instigation
of any legal proceedings in connection therewith. Copies of proofs or other
documents bearing on such claim or proceeding shall be furnished to the LINCOLN
when requested.
2. The LINCOLN shall accept the good faith decision of the REINSURED in
settling any claim or suit and shall pay, at its Home Office, its share of net
reinsurance liability upon receiving proper evidence of the REINSURED'S having
settled with the claimant. Payment of net reinsurance liability on account of
death shall be made in one lump sum.
3. If the REINSURED should contest or compromise any claim or
proceeding, and the amount of net liability thereby be reduced, the LINCOLN'S
reinsurance liability shall be reduced in the proportion that the net liability
of the LINCOLN bore to the sum of the retained net liability of the REINSURED
and the net liability of other reinsurers existing as of the occurrence of the
claim.
4. Any unusual expenses incurred by the REINSURED in defending or
investigating a claim for policy liability or in taking up or rescinding a
policy reinsured hereunder shall be participated in by the LINCOLN in the same
proportion as described in paragraph 3, above.
5. In no event shall the following categories of expenses or
liabilities be considered, for purposes of this agreement, as "unusual expenses"
or items of "net reinsurance liability:"
(a) routine investigative or administrative expenses;
(b) expenses, fees, settlements, or judgments arising out of or in
connection with claims made against the REINSURED and based on
alleged or actual bad faith, failure to exercise good faith, or
tortuous conduct. In determining the reason for the assessment
of any damages, fees or expenses against the REINSURED, the
parties shall not be required to follow the reason indicated by
the court which awarded such damages, fees or expenses. Rather
the parties shall act in good faith to determine the actual
reason for the award.
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6. For purposes of this agreement, penalties, attorney's fees, and
interest imposed automatically by statute against the REINSURED and arising
solely out of a judgment being rendered against the REINSURED in a suit for
policy benefits reinsured hereunder shall be considered "unusual expenses."
7. In the event that the amount of insurance provided by a policy or
policies reinsured hereunder is increased or reduced because of a misstatement
of age or sex established after the death of the insured, the net reinsurance
liability of the LINCOLN shall increase or reduce in the proportion that the net
reinsurance liability of the LINCOLN bore to the sum of the net retained
liability of the REINSURED and the net liability of other reinsurers immediately
prior to the discovery of such misstatement of age or sex. Any adjustment in
reinsurance premiums shall be made without interest.
8. The LINCOLN shall refund to the REINSURED any reinsurance premiums,
without interest, unearned as of the date of death of the life reinsured
hereunder. No insurance amount adjustment shall be made because of fluctuation
in the death benefit of the policy forms listed in Appendix I.
EXPERIENCE REFUNDS
Reinsurance hereunder shall not be considered for experience refunds.
PREMIUM TAX REIMBURSEMENT
When the LINCOLN is not required to pay state premium taxes upon
reinsurance premiums received from the REINSURED, it shall reimburse the
REINSURED for any such taxes the latter may be required to pay with respect to
that part of the premiums received under the REINSURED'S original policies which
is remitted to the LINCOLN as reinsurance premiums.
POLICY CHANGES
If a change is made in the policy issued by the REINSURED to the
insured which affects reinsurance hereunder, the REINSURED shall immediately
notify the LINCOLN of such change.
REINSTATEMENTS
If a policy reinsured hereunder lapses for nonpayment of premium and is
reinstated in accordance with its terms and the rules of the REINSURED, the
LINCOLN shall automatically reinstate its reinsurance under such policy. The
REINSURED shall pay the LINCOLN all reinsurance premiums in arrears in
connection with the reinstatement with the interest at the same rate and in the
same manner as the REINSURED received under its policy.
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EXPENSES
The REINSURED shall bear the expense of all medical examinations,
inspection fees, and other charges incurred in connection with the original
policy.
REDUCTIONS
1. Except as otherwise provided in paragraph 3 of the "REINSURANCE
COVERAGE" article hereof, if a portion of the insurance issued by the REINSURED
on a life reinsured hereunder is terminated, reinsurance on that life hereunder
shall be reduced as hereinafter provided to restore, as far as possible, the
retention level of the REINSURED on the risk, provided, however, that the
REINSURED shall not assume on any policy being adjusted as provided in this
article an amount of insurance in excess of the higher of, for the retention
category of that policy, (a) its retention limit at the time of issue of that
policy and (b) the retention limit of that policy as already adjusted by the
provision of the "INCREASE IN LIMIT OF RETENTION" article. The reduction in
reinsurance shall first be applied to the reinsurance, if any, of the specific
policy under which insurance terminated. The reinsurance of the LINCOLN shall be
reduced by an amount which is the same proportion of the amount of reduction so
applied as the reinsurance of the LINCOLN on the policy bore to the total
reinsurance of the policy. The balance, if any, of the reduction shall be
applied to reinsurance of other policies on the life, the further reduction, if
any, in the reinsurance of the LINCOLN again being determined on a proportional
basis.
2. Policies with the earliest issue dates shall be reduced first in
processing reductions and terminations; other policies shall be processed in
chronological order. Off-anniversary terminations shall have pro-rate
reinsurance premium adjustments but not insurance amount adjustments.
Terminations on the policy anniversary shall not have any reinsurance premium or
insurance amount adjustments.
INSPECTION OF RECORDS
The LINCOLN shall have the right at any reasonable time to inspect, at
the office of the REINSURED, all books and documents relating to the reinsurance
under this agreement.
INCREASE IN LIMIT OF RETENTION
1. The REINSURED may increase its limit of retention and may elect,
subject to the other provisions of this article, to: (a) continue unchanged
reinsurance then in force under this agreement; (b) make reductions in both
standard and substandard reinsurance then in force under this agreement; or (c)
make reductions in standard reinsurance then in force under this agreement. The
increased limit of retention shall be effective with respect to new reinsurance
on the date specified by the REINSURED subsequent to written notice to the
LINCOLN. Such written notice shall specify the new limit of retention, the
effective date thereof, and the election permitted by the first sentence of this
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paragraph. If the REINSURED makes election (b) or (c), the amount of reinsurance
shall be reduced, except as hereinafter provided, to the excess, if any, over
the REINSURED'S new limit of retention.
2. No reduction shall be made in the amount of any reinsurance policy
unless the REINSURED retained its maximum limit of retention for the plan, age,
and mortality classification at the time the policy was issued, nor shall
reductions be made unless held by the REINSURED at its own risk without benefit
of any proportional or nonproportional reinsurance other than catastrophe
accident reinsurance. In the case of Life and Disability reinsurance, no
reduction shall be made in any class of reinsurance fully reinsured; Accidental
Death Benefits fully reinsured because the REINSURED retains Life insurance
first and then Accidental Death Benefits may be reduced as herein provided, but
other fully reinsured Accidental Death Benefits may not. No reduction shall be
made in any Supplemental Benefits reinsured on a Life reinsurance cession unless
the LINCOLN reinsurance is also being reduced as described hereunder. The plan,
age, and mortality classification at issue shall be used to determine the
REINSURED'S new retention on any life on which reinsurance policies are reduced
in accordance with the provisions of this article.
3. The reduction in each reinsurance policy shall be effective upon the
reinsurance renewal date of that policy first following the effective date of
the increased limit of retention or upon the tenth reinsurance renewal date of
the reinsurance policy, if later. If there is reinsurance in other reinsurers on
a life on whom a reinsurance policy will be reduced hereunder, the LINCOLN shall
share in the reduction in the proportion that the amount of reinsurance of other
reinsurers on the life.
4. In the event the REINSURED overlooks any reduction in the amount of
a reinsurance policy which should have been made on account of an increase in
the REINSURED'S limit of retention, the acceptance by the LINCOLN of reinsurance
premiums under such circumstances and after the effective date of the reduction
shall not constitute or determine a liability on the part of the LINCOLN for
such reinsurance. The LINCOLN shall be liable only for a refund of premiums so
received, without interest.
OVERSIGHTS
It is understood and agreed that, if failure to comply with any terms
of this agreement is shown to be unintentional and the result of
misunderstanding or oversight on the part of either the REINSURED or the
LINCOLN, both the REINSURED and the LINCOLN shall be restored to the positions
they would have occupied had no such misunderstanding or oversight occurred.
ARBITRATION
1. It is the intention of the REINSURED and the LINCOLN that the
customs and practices of the life insurance and life reinsurance industry shall
be given full effect in the operation and interpretation of this agreement. The
parties agree to act in all things with
8
the highest good faith. If the REINSURED or the LINCOLN cannot mutually resolve
a dispute which arises out of or relates to this agreement, however, the dispute
shall be decided through arbitration. The arbitrators shall reach their decision
from the standpoint of equity and the customs and practices of the life
insurance and life reinsurance industry rather than solely from the standpoint
of a strict interpretation of the applicable substantive and procedural law.
2. To initiate arbitration, either the REINSURED or the LINCOLN shall
notify the other party in writing of its desire to arbitrate, stating the nature
of its dispute and the remedy sought. The party to which the notice is sent
shall respond to the notification in writing within ten (10) days of its
receipt. At that time, the party also shall assert any dispute it may have which
arises out of or relates to this agreement.
3. The arbitration hearing shall be before a panel of three
arbitrators, each of whom must be present or former officers of life insurance
or life reinsurance companies other than the REINSURED or the LINCOLN or
eithers' affiliates. The REINSURED and the LINCOLN shall each appoint one
arbitrator by written notification to the other party within twenty-five (25)
days of the date of the mailing of the notification initiating the arbitration.
These two arbitrators shall then select the third arbitrator within fourteen
(14) additional days of the date of the mailing of the notification initiating
the arbitration. Should either the REINSURED or the LINCOLN fail to appoint an
arbitrator, or should the two arbitrators be unable to agree upon the choice of
a third arbitrator, such appointment shall be left to the president of the
American Counsel of Life Insurance or of its successor organization. Once
chosen, the arbitrators are empowered to decide all substantive and procedural
issues by a majority of votes.
4. The arbitration hearing shall be held on the date fixed by the
arbitrators in the city in which the responding party's home office is located.
In no even shall this date be later than six months after the appointment of the
third arbitrator. The arbitrators shall establish prearbitration procedures as
warranted by the facts and issues of the particular case. At least ten (10) days
prior to the arbitration hearing, each party shall provide the other party and
the arbitrators with a detailed statement of the facts and arguments it will
present at the arbitration hearing. The arbitrators may consider any relevant
evidence; they shall give the evidence such weight as they deem it entitled to
after consideration of any objections raised concerning it. The party initiating
the arbitration shall have the burden or proving its case by a preponderance of
the evidence. Each party may examine any witnesses who testify at the
arbitration hearing. Within twenty (20) days after the end of the arbitration
hearing, the arbitrators shall issue a written decision, from which there shall
be no appeal and which any court having jurisdiction of the subject matter and
the parties may reduce to judgment. In their decision, the arbitrators shall
apportion the costs of arbitration, which shall include but not be limited to
their own fees and expenses, as they deem appropriate.
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INSOLVENCY
1. In the event of the insolvency of the REINSURED, all reinsurance
shall be payable directly to the liquidator, receiver, or statutory successor of
said REINSURED, without diminution because of the insolvency of the REINSURED.
2. In the event of insolvency of the REINSURED, the liquidator,
receiver, or statutory successor shall give the LINCOLN written notice of the
pendency of a claim on a policy reinsured within a reasonable time after such
claim is filed in the insolvency proceeding. During the pendency of any such
claim, the LINCOLN may investigate such claim and interpose, in the name of the
REINSURED (its liquidator, receiver, or statutory successor), but at its own
expense, in the proceeding where such claim is to be adjudicated, any defense or
defenses which the LINCOLN may deem available to the REINSURED or its
liquidator, receiver, or statutory successor.
3. The expense thus incurred by the LINCOLN shall be chargeable,
subject to court approval, against the REINSURED as part of the expense of
liquidation to the extent of a proportionate share of the benefit which may
accrue to the REINSURED solely as a result of the defense undertaken by the
LINCOLN. Where two or more reinsurers are participating in the same claim and a
majority in interest elect to interpose a defense or defenses to any such claim,
the expense shall be apportioned in accordance with the terms of the reinsurance
agreement as though such expense had been incurred by the REINSURED.
PARTIES TO AGREEMENT
This is an agreement for indemnity reinsurance solely between the
REINSURED and the LINCOLN. The acceptance of reinsurance hereunder shall not
create any right or legal relation whatever between the LINCOLN and the insured
or the beneficiary under any policy reinsured hereunder.
EXECUTION AND DURATION OF AGREEMENT
The provisions of this reinsurance agreement shall apply with respect
to policies issued by the REINSURED on and after the first day of August, 1983,
but in no event shall this agreement become effective unless and until it has
been duly executed by two officers of the LINCOLN at its Home Office in Fort
Xxxxx, Indiana. This agreement shall be unlimited as to its duration but may be
terminated at any time, insofar as it pertains to the handling of new
reinsurance, thereafter, by either party giving three months' notice of
termination in writing. The LINCOLN shall continue to accept reinsurance during
the three months aforesaid and shall remain liable on all reinsurance granted
under this agreement until the termination or expiry of the insurance reinsured.
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IN WITNESS WHEREOF the said
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
of
Worcester, Massachusetts,
and the said
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
of
Fort Xxxxx, Indiana,
have by their respective officers executed and delivered these presents in
duplicate on the dates shown below.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By /s/ By /s/ Xxxxxx X. Xxxxx, Xx.
------------------------ ---------------------------
Vice President & Actuary Assistant Vice President and
Associate Actuary
Date December 7, 1983 Date December 6, 1983
------------------------ ---------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
By /s/ By /s/
------------------------ ---------------------------
Second Vice President Assistant Secretary
Date 12/20/83 Date December 19, 1983
------------------------ ---------------------------
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APPENDIX I
Policy Forms Subject to Reinsurance Hereunder
Flexible Premium Adjustable Life (Form 1012-83)
Policies issued by SMA Life Assurance Company, Dover,
Delaware, and reinsured
with the REINSURED, including those issued as exchanges of policies previously
reinsured by the REINSURED and retroceded to the LINCOLN and including those
issued as exchanges of policies previously ceded to the LINCOLN.
SCHEDULE A
Retention Limits of the REINSURED
LIFE
STANDARD RISKS,
SPECIAL CLASSES SPECIAL CLASSES SPECIAL CLASSES
A, B, C, & D, AND E, F, & H, AND J, L, & P, AND
FLAT EXTRAS OF FLAT EXTRAS OF FLAT EXTRAS OF
AGES $10.00 OR LESS (a) (b) $10.01-$20.00 (c) $20.01 AND OVER
---- ---------------------- ----------------- ---------------
0 $ 400,000 $200,000 $100,000
1-17 800,000 600,000 200,000
18-60 1,000,000 700,000 400,000
61-70 700,000 500,000 200,000
71-75 300,000 200,000 100,000
76-80 200,000 100,000 50,000
(a) Youth Insurance Builder retention limit in terms of Ultimate
Sum Insured - available for standard risks only.
(b) Spouse's Insurance Rider not available above Class D.
(c) Term policies and Term Riders not available above class H.
Notes: (1) The above maximum limits are also the maximums on any one life
for all plans combined, including the initial commuted value
of Family Income Riders and the total extra liability for
Supplemental Level Term and Payor Riders.
(2) There are conditions where the retention may be limited, such
as in aviation, Armed forces personnel, certain avocations,
and medical classifications.
SCHEDULE A (Continued)
CORONARY HISTORY: When a combination Table and Flat Extra rating is necessary.
AGES RETENTION
---- ---------
60 and Under $250,000
61-70 100,000
71-80 50,000
CIVILIAN AVIATION:
PASSENGERS UNDERWRITING ACTION RETENTION
---------- ------------------- ---------
Company owned business planes
To 200 hours annually Standard $1,000,000
Over 200 hours annually Individual Consideration* $ 500,000
Charter Flying
To 100 hours annually Standard $ 500,000
Over 100 hours annually Individual Consideration* $ 300,000
Private business or pleasure
To 100 hours annually Standard $ 500,000
Over 100 hours annually Individual Consideration* $ 300,000
Pilots and Crew Members $ 300,000
* Require complete details of type of planes and equipment, flying terrain and
qualifications of pilots.
WAIVER OF PREMIUM DISABILITY
Same as Life
SCHEDULE A (Continued)
ACCIDENTAL DEATH BENEFITS
AGES RETENTION
---- ---------
5-15 $ 25,000
16-19 50,000
20-29 100,000
30-65 200,000
ARMED FORCES
Active Duty personnel, Reserves alerted, National Guard alerted, ROTC final
college year, West Point Cadets, Annapolis Midshipmen, Air Force and Coast Guard
Academy Cadets:
AGES OFFICERS ENLISTED PERSONNEL*
---- -------- -------------------
24 and Under $25,000 $15,000
25-29 35,000 25,000
30-39 50,000 30,000
40 and over 75,000 45,000
Submarine Service and Hazardous OFFICERS AND ENLISTED PERSONNEL*
--------------------------------
Special Services $10,000 or up to 1/2 the above
limits, whichever is greater.
Paratroopers and Airborne Infantry - all
ages - Officers and Enlisted Personnel
(E-5 and up): $ 10,000 $10,000
Doctors, Dentists and Allied Specialists: $100,000 ------
Civilian participants in Reserve Programs entering on
active duty for up to six months only, with remaining
of military service obligation to be completed in
Ready Reserve
All ages and rank $50,000
*Enlisted Personnel (Pay Grades E-1 through E-4 are not eligible).
SCHEDULE B
Maximum Amounts which the REINSURED may cede Automatically
LIFE
If the REINSURED retains its limit of retention, it may cede 150% of its
retention limit as shown in Schedule A, not to exceed $1,500,000. If the
REINSURED retains less than its maximum retention, the LINCOLN shall accept
automatically reinsurance in an amount not to exceed the amount retained by the
REINSURED on the current application.
WAIVER OF PREMIUM DISABILITY
The REINSURED may cede automatically Waiver of Premium Disability reinsurance in
amounts not to exceed the amount of Life reinsurance ceded automatically.
ACCIDENTAL DEATH BENEFITS
AGES STANDARD-SUBSTANDARD
----- --------------------
5-15 $125,000
16-19 100,000
20-29 200,000
30-65 100,000
Over 65 None
SCHEDULE B (Continued)
If the REINSURED, before having concluded the necessary reinsurance, shall
become liable under a conditional or interim receipt for a death claim of an
amount which, together with the amount retained by the REINSURED under
previously-issued policies, if any, exceeds its own limit of retention
applicable to the mortality class, plan of insurance, and age at issue for which
a premium was collected, the LINCOLN shall accept reinsurance of such excess
automatically in an amount not to exceed one-third of the lesser of (a) the
maximum amount the REINSURED may cede automatically, as described above, plus
50% of any amount in excess thereof and (b) $250,000. The REINSURED shall submit
copies of its conditional receipt to the LINCOLN and shall notify the LINCOLN
immediately of any change therein.
REPORTS
Omitted 8 Pages
SCHEDULE D
Reinsurance Premium Rates
STANDARD PREMIUMS
For automatic reinsurance not in excess of $1,500,000 on any one life, the
annual reinsurance premium shall be the attached cost of insurance rates charged
the insured per thousand of the net amount at risk less 45%.
For reinsurance in excess of $1,500,000 on any one life and all facultative
reinsurance, the annual reinsurance premium shall be the attached cost of
insurance rates charged the insured per thousand of the net amount at risk less
31%.
SUBSTANDARD EXTRA PREMIUMS
The reinsurance premium per substandard extra table will be the substandard
extra premium charged the insured less the applicable percentage shown above.
SCHEDULE D (Continued)
CONVERSIONS AND EXCHANGES
For the purpose of calculating the premium for reinsurance of conversions or
exchanges of policies reinsured with the LINCOLN to the REINSURED'S Flexible
Life Plan, on policies (a) without an increase in the face amount of the
original policy, the date of issue of the converted policy shall be considered
the date of the original policy; (b) with an increase in the face amount, the
date of issue of the reinsurance of the original policy plus the increase shall
be considered the date of issue of the converted policy if new underwriting is
obtained. For a conversion or exchange of several policies to a single policy
reinsured under this agreement, the date of issue of the original policy shall
be considered to the date of issue of the most recent underwritten policy.
WAIVER OF PREMIUM DISABILITY, PAYOR BENEFITS, AND ACCIDENTAL DEATH BENEFITS
The premium which the REINSURED charges the insured on the amount reinsured less
total allowances of 100% first year and 10% in renewal years.
COST OF INSURANCE TABLES
Omitted 13 Pages
AMENDMENT
to the Risk
Premium Reinsurance Agreement between the
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
of
Worcester, Massachusetts,
hereinafter referred to as the "REINSURED", and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
of
Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN,"
effective August 1, 1983.
1. On or after the fourteenth day of May, 1984, the REINSURED'S excess
of individual ordinary life, waiver of premium disability, and accidental death
insurance issued by the REINSURED on policy forms listed in appendix I, attached
hereto, shall be reinsured under the above-mentioned reinsurance agreement,
either ceded to the LINCOLN automatically, submitted to the LINCOLN on a
facultative basis, or ceded to the LINCOLN as continuations; a continuation is a
new policy replacing a policy issued earlier by the REINSURED ("original
policy") or a change in an existing policy issued or made either (a) in
compliance with the terms of the original policy or (b) without the same new
underwriting information the REINSURED would obtain in the absence of the
original policy, without a suicide exclusion period or contestable period as
long as those contained in the new issues by the REINSURED, or without the
payment of the same commissions in the first year that the REINSURED would have
paid in the absence of the original policy.
2. Continuations shall be reinsured under the above-mentioned
reinsurance agreement only if the original policy was reinsured with the
LINCOLN; the amount of reinsurance under this agreement shall not exceed the
amount of the reinsurance of the original policy with the LINCOLN immediately
prior to the new issue or change.
3. If the REINSURED issues a policy the subject of this agreement as a
continuation of a policy reinsured under a reinsurance agreement between the
REINSURED and the LINCOLN, reinsurance of the continuation shall continue with
the LINCOLN as described below:
(a) CONTINUATIONS TO ISSUES REINSURED HEREUNDER:
The reinsurance premium for newly-issued policies reinsured
under the above-mentioned reinsurance agreement as continuations
and issued in compliance with the terms of the original policy
shall be determined by
Revision No. 1
using the original issue age and attained duration, unless the
agreement governing the original policy specifies otherwise. For
purposes of calculating the reinsurance premium for other
policies reinsured under the above-mentioned reinsurance
agreement as continuations, the date of issue of the
continuation policy shall be considered the date of the original
policy.
(b) CONTINUATIONS FROM ISSUES REINSURED HEREUNDER:
The reinsurance premium shall be as described in the agreement
which covers the new policy based on the original issue age and
attained duration. If no such agreement is in effect between the
LINCOLN and the REINSURED, reinsurance shall continue hereunder.
4. The reinsurance percentages for the REINSURED'S cost of insurance
rates shall be as described in Schedule D, Part I, attached hereto, and shall
apply to reinsurance of the REINSURED'S Exceptional Retirement Life plan (Form
1016-84) ceded by the REINSURED to the LINCOLN under the above-mentioned
reinsurance agreement on and after the fourteenth day of May, 1984.
5. Reinsurance to which the rates attached hereto have been applied
shall not be reduced as provided in the "INCREASE IN LIMIT OF RETENTION" article
of the above-mentioned reinsurance agreement until in the case of continuations,
the sum of the years the original policy and its continuation have been in force
is at least equal to the longer of (a) ten years and (b) the time period
specified in the reinsurance agreement under which the original policy was
reinsured with the LINCOLN or in the case of other issues, for at least ten
years; shall not be eligible for a persistency or a production bonus; and shall
be subject to a minimum cession of $25,000.
6. The LINCOLN shall not reimburse the REINSURED for any taxes the
latter may be required to pay on reinsurance of the REINSURED'S Exceptional
Retirement Life plan (Form 1016-84) ceded under the above-mentioned reinsurance
agreement on and after the fourteenth day of May, 1984.
It is expressly understood and agreed that the provisions of this
amendment shall be subject to all the terms and conditions of the reinsurance
agreement of which this amendment is a part which do not conflict with the terms
hereof.
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By /s/ By /s/
----------------------------- ----------------------------
Date Sept. 13, 1984 Date September 13, 1984
----------------------------- ----------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
By /s/ By /s/
----------------------------- ----------------------------
Second Vice President Assistant Secretary
Date September 24, 1984 Date September 24, 1984
----------------------------- ----------------------------
APPENDIX I
(Effective May 14, 1984)
Policy forms Subject to Reinsurance Hereunder
Flexible Premium Adjustable Life (Form 1012-83)
Exceptional Retirement Life (Form 1016-84)
Policies issued by SMA Life Assurance Company, Dover,
Delaware, and reinsured
with the REINSURED, including those issued as continuations of policies
previously reinsured by the REINSURED and retroceded to the LINCOLN and
including those issued as continuations of policies previously ceded to the
LINCOLN.
SCHEDULE D, PART I
(Effective May 14, 1984)
Reinsurance Premium Rates
Fully-Underwritten Issues
Standard Risks
For Automatic Reinsurance not in excess of $1,500,000 on any one life, the
annual reinsurance premium shall be the attached cost of insurance rates charged
the insured per thousand of the net amount at risk less 40% for males and less
58% for females.
For reinsurance in excess of $1,500,000 on any one life and all facultative
reinsurance, the annual reinsurance premium shall be the attached cost of
insurance rates charged the insured per thousand of the net amount at risk less
19% for males and less 37% for females.
SUBSTANDARD EXTRA PREMIUMS
The reinsurance premium per substandard extra table will be the substandard
extra premium charged the insured less the applicable percentage shown above.
ILLUSTRATION
Omitted 1 Page
AMENDMENT
to the Risk
Premium Reinsurance Agreement between the
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
of
Worcester, Massachusetts,
hereinafter referred to as the "REINSURED",
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
of
Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN,"
effective August 1, 1983.
1. The reinsurance percentages for the REINSURED'S cost of insurance
rates shall be as described in Schedule D, Part I, attached hereto, and shall
apply to reinsurance of the REINSURED'S Exceptional Retirement Life plan (Form
1016-84) ceded by the REINSURED to the LINCOLN under the above-mentioned
reinsurance agreement on and after the first day of May, 1984.
2. Reinsurance to which the rates attached hereto have been applied
shall not be reduced as provided in the "INCREASE IN LIMIT OF RETENTION" article
of the above-mentioned reinsurance agreement until (a) in the case of
continuations, the sum of the years the original policy and its continuation
have been in force is at least equal to the longer of (1) ten years and (2) the
time period specified in the reinsurance agreement under which the original
policy was reinsured with the LINCOLN or (b) in the case of other issues, the
reinsurance has been in force for at least ten years; shall not be eligible for
a persistency or a production bonus; and shall be subject to a minimum cession
of $25,000.
3. The LINCOLN shall reimburse the REINSURED for any taxes the latter
may be required to pay on reinsurance of the REINSURED'S Exceptional Retirement
Life plan (Form 1016-84) ceded under the above-mentioned reinsurance agreement
on and after the first day of May, 1984.
Revision No. 2
It is expressly understood and agreed that the provisions of this
amendment shall be subject to all the terms and conditions of the reinsurance
agreement of which this amendment is a part which do not conflict with the terms
hereof.
In WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicated on the dates shown below:
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By /s/ By /s/ Xxxxxx X. Xxxxx, Xx.
----------------------------- ----------------------------
Date March 12, 1985 Date March 12, 1985
----------------------------- ----------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
By /s/ By /s/
----------------------------- ----------------------------
Vice President Assistant Secretary
Date 3-19-85 Date 3-19-85
----------------------------- ----------------------------
SCHEDULE D, PART I
(Effective May 14, 1984)
Reinsurance Premium Rates
FULLY-UNDERWRITTEN ISSUES
Standard Risks
For automatic reinsurance not in excess of $1,500,000 on any one life, the
annual reinsurance premium shall be the attached cost of insurance rates charged
the insured per thousand of the net amount at risk less 39% for males and less
57% for females.
For reinsurance in excess of $1,500,000 on any one life and all facultative
reinsurance, the annual reinsurance premium shall be the attached cost of
insurance rates charged the insured per thousand of the net amount at risk less
18% for males and less 36% for females.
SUBSTANDARD EXTRA PREMIUMS
The reinsurance premium per substandard extra table will be the substandard
extra premium charged the insured less the applicable percentage shown above.
Revision No. 3
ILLUSTRATION
Omitted 1 Page
AMENDMENT
to the Risk
Premium Reinsurance Agreement between the
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
of
Worcester, Massachusetts,
hereinafter referred to as the "REINSURED",
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
of
Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN,"
effective August 1, 1983.
1. As herein provided, the REINSURED'S excess of individual ordinary
life, waiver of premium disability, and accidental death insurance accepted as
reinsurance from SMA Life Assurance Company of Dover,
Delaware, on and after the
first day of August, 1983, on plans the subject of the above-mentioned
reinsurance agreement shall be reinsured under that agreement, either ceded to
the LINCOLN automatically, submitted to the LINCOLN on a facultative basis, or
ceded to the LINCOLN as continuations. A continuation is a new policy replacing
a policy issued earlier by the REINSURED ("original policy") or a change in an
existing policy issued or made either (a) in compliance with the terms of the
original policy or (b) without the same new underwriting information the
REINSURED would obtain in the absence of the original policy, without a suicide
exclusion period or contestable period as long as those contained in new issues
by the REINSURED, or without the payment of the same commissions in the first
year that the REINSURED would have paid in the absence of the original policy.
References to policies and procedures under the above-mentioned reinsurance
agreement on and after the first day of August, 1983, shall be interpreted to
mean those of the original company.
2. Continuations shall be reinsured under the above-mentioned
reinsurance agreement only if the original policy was reinsured with the
LINCOLN; the amount of reinsurance under this agreement shall not exceed the
amount of the reinsurance of the original policy with the LINCOLN immediately
prior to the new issue or change.
3. The reinsurance premium for policies reinsured under the
above-mentioned reinsurance agreement as continuations shall be the appropriate
premium described in that agreement; unless the reinsurance agreement under
which the original policy was reinsured specifies otherwise, the policy duration
and attained age of the insured, for
Revision No. 3
purposes of calculating such premiums, shall be determined as though the
continuations were issued on the same date and at the same issue age as the
original policy.
4. The reinsurance premium for continuations of policies reinsured
under the above-mentioned reinsurance agreement shall be as described in the
agreement which covers the new policy; unless that agreement specifies
otherwise, the policy duration and attained age of the insured, for purposes of
calculating such premiums, shall be determined as though the continuations were
issued on the same date and at the same issue age as the original policy. If no
such agreement is in effect between the LINCOLN and the REINSURED, reinsurance
shall continue hereunder.
5. The reinsurance percentages for the REINSURED'S cost of insurance
rates shall be as described in Schedule D, Part II, attached hereto, and shall
apply to reinsurance of the REINSURED'S Flexible Premium Adjustable Life and
Other Insured Rider ceded by the REINSURED to the LINCOLN under the
above-mentioned reinsurance agreement on and after the first day of September,
1984.
6. Reinsurance to which the rates attached hereto have been applied
shall not be reduced as provided in the "INCREASE IN LIMIT OF RETENTION" article
of the above-mentioned reinsurance agreement until (a) in the case of
continuations, the sum of the years the original policy and its continuation
have been in force is at least equal to the longer of (1) ten years and (2) the
time period specified in the reinsurance agreement under which the original
policy was reinsured with the LINCOLN or (b) in the case of other issues, the
reinsurance has been in force for at least ten years; shall not be eligible for
a persistency or a production bonus; and shall be subject to a minimum cession
of $25,000.
7. The LINCOLN shall reimburse the REINSURED for any taxes the latter
may be required to pay on reinsurance ceded under the above-mentioned
reinsurance agreement on and after the first day of September, 1984.
It is expressly understood and agreed that the provisions of this
amendment shall be subject to all the terms and conditions of the reinsurance
agreement of which this amendment is a part which do not conflict with the terms
hereof.
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By /s/ By /s/ Xxxxxx X. Xxxxx, Xx.
----------------------------- ----------------------------
Date April 10, 1985 Date April 10, 1985
----------------------------- ----------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
By /s/ By /s/
----------------------------- ----------------------------
Vice President Assistant Secretary
Date 4-23-85 Date 4-22-85
----------------------------- ----------------------------
APPENDIX I
(Effective September 1, 1984)
Insurance Subject to Reinsurance under this Agreement
A. One-third of the REINSURED'S entire excess of reinsurance it
accepts from SMA Life Assurance Company of Dover,
Delaware, of the
following plans bearing register dates in the range shown below to insureds
having surnames beginning with the letters of the alphabet as shown below.
DATES LETTERS
PLAN FROM THROUGH FROM THROUGH
---- ---- ------- ---- -------
Flexible Premium Adjustable Life 8-1-83 -- A Z
(Form 1012-83)
Exceptional Retirement Life
(Form 1016-84) 5-14-84 -- A Z
Flexible Other Insured Rider 9-1-84 -- A Z
B. Continuations of the REINSURED'S issues of any of the plans listed above,
provided the original policy was reinsured with the LINCOLN under this or
another reinsurance agreement.
SCHEDULE D, PART II
(Effective September 1, 1984)
Reinsurance Premium Rates
Flexible Premium Adjustable Life and Other Insured Rider
Standard Risks
For automatic reinsurance not in excess of $5,000,000 on any one life, the
annual reinsurance premium shall be 59% of the attached cost of insurance rates
charged the insured per thousand of the net amount at risk.
For Facultative reinsurance not in excess of $5,000,000 on any one life, the
annual reinsurance premium shall be 81.0% of the attached cost of insurance
rates charged the insured per thousand of the net amount at risk.
Reinsurance ceded to the LINCOLN in excess of $5,000,000 per life shall be ceded
under the Risk
Premium Reinsurance Agreement between the REINSURED and the
LINCOLN, effective July 1, 1977, using the appropriate premiums from Schedule D,
thereof. Such reinsurance shall not be terminated as described in the "INCREASE
IN LIMIT OF RETENTION" article thereof until it has been in force for at least
ten years.
SUBSTANDARD EXTRA PREMIUMS
The substandard table extra shall be the number of tables assessed the risk
times 25% times the following percentages:
CESSION TYPE ALL POLICY YEARS
------------ ----------------
Automatic 59.0%
Facultative 81.0%
ILLUSTRATION
Omitted 1 Page
AMENDMENT
to the Risk
Premium Reinsurance Agreement between the
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
of
Worcester, Massachusetts,
hereinafter referred to as the "REINSURED",
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
of
Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN,"
effective August 1, 1983.
On and after the eighteenth day of October, 1984, the retention limit
of the REINSURED shall be that shown in the revised Schedule A attached hereto.
This retention shall apply to reinsurance ceded after the effective date hereof.
It is expressly understood and agreed that the provisions of this
amendment shall be subject to all the terms and conditions of the reinsurance
agreement of which this amendment is a part which do not conflict with the terms
hereof.
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By /s/ By Xxxxxx X. Xxxxx, Xx.
-------------------------- --------------------------
Date March 27, 1985 Date March 27, 1985
-------------------------- --------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
By /s/ By /s/
-------------------------- --------------------------
Vice President Assistant Secretary
Date 4-10-85 Date 4-9-85
-------------------------- --------------------------
Revision No. 4
SCHEDULE A
(Effective October 18, 1984)
Retention Limits of the REINSURED
LIFE
STANDARD RISKS,
SPECIAL CLASSES A,
B, C, & D, AND FLAT SPECIAL CLASSES E, F, SPECIAL CLASSES J, L, &
EXTRAS OF $10.00 OR & H, AND FLAT EXTRAS P, AND FLAT EXTRAS OF
AGES LESS (a) (b) OF $10.01-$20.00 (c) $20.01 AND OVER
---- ------------ -------------------- ---------------
0 $ 400,000 $200,000 $100,000
1-17 800,000 600,000 200,000
18-60 1,000,000 700,000 400,000
61-70 700,000 500,000 200,000
71-75 300,000 200,000 100,000
76-80 200,000 100,000 50,000
(a) Youth Insurance Builder retention limit in terms of Ultimate Sum
Insured - available for standard risks only.
(b) Spouse's Insurance Rider not available above Class D.
(c) Term policies and Term Riders not available above class H.
Notes: (1) The above maximum limits are also the maximums on any one life
for all plans combined, including the initial commuted value of
Family Income Riders and the total extra liability for
Supplemental Level Term and Payor Riders.
(2) There are conditions where the retention may be limited, such as
in aviation, Armed forces personnel, certain avocations, and
medical classifications.
CORONARY HISTORY: When a combination Table and Flat Extra rating is necessary.
AGES RETENTION
---- ---------
60 and Under $250,000
61-70 100,000
71-80 50,000
CIVILIAN AVIATION:
PASSENGERS UNDERWRITING ACTION RETENTION
---------- ------------------- ---------
Company owned business planes
To 200 hours annually Standard $1,000,000
Over 200 hours annually Individual Consideration* $ 500,000
Charter Flying
To 100 hours annually Standard $ 500,000
Over 100 hours annually Individual Consideration* $ 300,000
Private business or pleasure
To 100 hours annually Standard $ 500,000
Over 100 hours annually Individual Consideration* $ 300,000
Pilots and Crew Members $ 300,000
*Require complete details of type of planes and equipment, flying terrain and
qualifications of pilots.
SCHEDULE A (Continued)
ARMED FORCES:
Active Duty personnel, Reserves alerted, National Guard alerted, ROTC final
college year, West Point Cadets, Annapolis Midshipmen, Air Force and Coast Guard
Academy Cadets:
AGES OFFICERS ENLISTED PERSONNEL*
---- -------- -------------------
24 and Under $100,000 $50,000
25 and Over 150,000 100,000
Submarine Service and Hazardous
Special Services, Paratroopers
and Airborne Infantry are not
eligible.)
Doctors, Dentists and Allied Specialists: $200,000 - - - - - -
Civilian participants in Reserve Programs entering on active duty for up to six
months only, with remaining of military service obligation to be completed in
Ready Reserve
All ages and rank $150,000 $100,000
*Enlisted Personnel (Pay Grades E-1 through E-3 are not eligible).
WAIVER OF PREMIUM DISABILITY
Same as Life
ACCIDENTAL DEATH BENEFITS
AGES RETENTION
---- ---------
5-15 $ 25,000
16-19 50,000
20-29 100,000
30-65 200,000
AMENDMENT
to the Risk
Premium Reinsurance Agreement between the
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
of
Worcester, Massachusetts,
hereinafter referred to as the "REINSURED",
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
of
Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN,"
effective August 1, 1983.
1. The REINSURED'S plans to be reinsured under the above-mentioned
reinsurance agreement on and after the first day of July, 1986, shall be those
specified in the Appendix I, attached hereto.
2. On and after the first day of July, 1986, the retention limit of the
REINSURED shall be that shown in the revised Schedule A, attached hereof.
3. On and after the first day of July, 1986, when the REINSURED retains
its maximum appropriate limit of retention on the life and meets all the other
requirements of the "AUTOMATIC AND FACULTATIVE REINSURANCE" article of the
above-mentioned reinsurance agreement, it may cede automatically reinsurance in
amounts not in excess of those set forth in Schedule B, attached thereto; when
the REINSURED retains less than that retention and meets such requirements, it
may cede automatically three times the amount retained on the current
application, one-third of which amount may be ceded to the LINCOLN
automatically.
4. On and after the first day of July, 1986, except for coverage
provided in Schedule B, Part I, the LINCOLN shall have no liability under
facultative applications for reinsurance under the above-mentioned reinsurance
agreement unless the REINSURED has accepted the LINCOLN'S offer to reinsure.
5. The reinsurance percentages for the REINSURED'S cost of insurance
rates shall be as described in Schedule D, Part I, attached hereto, and shall
apply to reinsurance of the REINSURED'S Retirement Series Flexible Premium
Adjustable Life (Exceptional Retirement Life II) and Flexible Premium Other
Insured Rider plans ceded by the
Revision No. 5
REINSURED to the LINCOLN under the above-mentioned reinsurance agreement on and
after the first day of July, 1986.
6. The reinsurance percentages for the REINSURED'S cost of insurance
rates shall be as described in Schedule D, Part II, attached hereto, and shall
apply to reinsurance of the REINSURED'S Flexible Premium Adjustable Life
(Exceptional Life II) and Flexible Premium Other Insured Rider plans ceded by
the REINSURED to the LINCOLN under the above-mentioned reinsurance agreement on
and after the first day of July, 1986.
7. The reinsurance premium rate for continuations shall be as described
under the above-mentioned reinsurance agreement; for purposes of determining the
appropriate policy fee only, a continuation shall be considered a renewal issue
if the REINSURED has paid the LINCOLN a first-year policy fee on reinsurance of
the original policy and as a new issue if the REINSURED has not paid the LINCOLN
a first-year policy fee on reinsurance of the original policy.
It is expressly understood and agreed that the provisions of this
amendment shall be subject to all the terms and conditions of the reinsurance
agreement of which this amendment is a part which do not conflict with the terms
hereof.
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By /s/ By /s/ Xxxxxx X. Xxxxx, Xx.
-------------------------- --------------------------
Date October 1, 1986 Date October 2, 1986
-------------------------- --------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
By /s/ By /s/
-------------------------- --------------------------
Vice President Assistant Secretary
Date 10-17-86 Date 10-8-86
-------------------------- --------------------------
APPENDIX I
Insurance Subject to Reinsurance under this Agreement
A. One-third of the REINSURED'S entire excess of reinsurance it accepts
from SMA Life Assurance Company of Dover,
Delaware, of the following
plans bearing register dates in the range shown below to insureds
having surnames beginning with the letters of the alphabet as shown below.
DATES LETTERS
PLAN FROM THROUGH FROM THROUGH
---- ---- ------- ---- -------
Flexible Premium Adjustable Life (Form 1012-83) 8-1-83 6-30-86 A Z
Exceptional Retirement Life
(Form 1016-84) 5-14-84 6-30-86 A Z
Flexible Premium Other Insured Rider 9-1-84 -- A Z
Flexible Premium Adjustable Life (Exceptional Life
II) Form 1012-86) 7-1-86 -- A Z
Retirement Series Flexible Premium Adjustable Life
(Exception Retirement Life II) (Form 1016-86) 7-1-86 -- A Z
B. Continuations of the REINSURED'S issues of any of the plans listed above,
provided the original policy was reinsured with the LINCOLN under this or
another reinsurance agreement.
SCHEDULE A
(Effective July 1, 1986)
Retention Limits of the REINSURED
LIFE
STANDARD RISKS,
SPECIAL CLASSES SPECIAL CLASSES SPECIAL CLASSES
A, B, C, & D, E, F, & H, AND FLAT J, L, & P, AND
AND FLAT EXTRAS OF EXTRAS OF FLAT EXTRAS OF
AGES $10.00 OR LESS (a) $10.01-$20.00 (c) $20.01 AND OVER
---- ------------------ ----------------- ---------------
0 $ 400,000 $200,000 $100,000
1-17 800,000 600,000 200,000
18-60 1,000,000 700,000 400,000
61-70 700,000 500,000 200,000
71-75 300,000 200,000 100,000
76-80 200,000 100,000 50,000
(a) Spouse's Insurance Rider not available above Class D.
(b) Term policies and Term Riders not available above class H.
Notes: (1) The above maximum limits are also the maximums on any one life
for all plans and riders combined.
(2) There are conditions where the retention may be limited, such
as in aviation, Armed forces personnel, certain avocations,
and medical classifications.
CIVILIAN AVIATION:
PASSENGERS UNDERWRITING ACTION RETENTION
---------- ------------------- ---------
Company owned business planes
To 200 hours annually Standard $1,000,000
Over 200 hours annually Individual Consideration* 500,000
Charter Flying
To 100 hours annually Standard 500,000
Over 100 hours annually Individual Consideration* 300,000
Private business or pleasure
To 100 hours annually Standard 500,000
Over 100 hours annually Individual Consideration* 300,000
Standard
Pilots and Crew Members Individual Consideration* 300,000
* Require complete details of type of planes and equipment, flying terrain
and qualifications of pilots.
ARMED FORCES:
Active Duty personnel, Reserves alerted,
National Guard alerted, ROTC final college
year, West Point Cadets, Annapolis Midshipmen,
Air Force and Coast Guard Academy Cadets
AGES OFFICERS ENLISTED PERSONNEL*
---- -------- -------------------
24 and Under $100,000 $50,000
25 and Over 150,000 100,000
(Submarine Service and Hazardous
Special Services, Paratroopers
and Airborne Infantry are not
eligible.)
Doctors, Dentists and Allied Specialists $100,000 ------
Civilian participants in Reserve Programs entering on active duty for up to six
months only, with remaining military service obligation to be completed in Ready
Reserve
AGES
----
All 150,000 100,000
* Enlisted Personnel (Pay Grades E-1 through E-3 are not eligible).
CORONARY HISTORY: When a combination Table and Flat Extra rating is necessary.
AGES RETENTION
---- ---------
60 and Under $250,000
61-70 100,000
71-80 50,000
WAIVER OF PREMIUM DISABILITY
Fully retained
ACCIDENTAL DEATH BENEFITS
Fully retained
SCHEDULE B
(Effective July 1, 1986)
Maximum Amount which the REINSURED may cede Automatically
Maximum amount that can be ceded automatically to all reinsurers (one-third of
the amounts below may be ceded automatically to the LINCOLN).
LIFE
STANDARD RISKS, SPECIAL OVER
CLASSES SPECIAL CLASSES SPECIAL CLASSES J, SPECIAL CLASS P
A, B, C, & D, AND FLAT E, F, & H, AND FLAT L, & P, AND FLAT OR EQUIVALENT
EXTRAS OF EXTRAS OF EXTRAS OF $20.01 TOTAL EXTRA
AGES $10.00 OR LESS $10.01-$20.00 AND OVER PREMIUM
---- -------------- ------------- -------- -------
0 $2,400,000 $1,200,00 $ 600,000 None
1-17 4,800,000 3,600,000 1,200,000 None
18-60 6,000,000 4,200,000 2,400,000 None
61-70 4,200,000 3,000,000 1,200,000 None
71-75 1,800,000 1,200,000 600,000 None
76-80 1,200,000 600,000 300,000 None
Over 80 None None None None
WAIVER OF PREMIUM DISABILITY
None
ACCIDENTAL DEATH BENEFITS
None
SCHEDULE B, PART I
Conditional Receipt
In addition to the automatic coverage otherwise provided under this
agreement, if the REINSURED shall become liable, as a result of having issued a
conditional receipt, for a death claim of an amount which, together with the
amount retained by the REINSURED under previously-issued policies, if any,
exceeds its own limit of retention applicable to the mortality class, plan of
insurance, and age at issue for which a premium was collected, the LINCOLN shall
accept reinsurance of such excess automatically in an amount not to exceed
one-third of $400,000.
This additional automatic coverage shall apply to insurance which is
covered under this agreement (as specified in paragraph 1 of the "REINSURANCE
COVERAGE" article) but which does not meet all the conditions outlined in
paragraph 2 of the "AUTOMATIC AND FACULTATIVE REINSURANCE" article. In any case,
this additional reinsurance shall terminate when facultative reinsurance is
completed.
A copy of any conditional receipt form of the REINSURED issued in
connection with any policy form eligible for reinsurance under this agreement is
attached as Schedule B, Part II. The REINSURED shall notify the LINCOLN
immediately of any change in such form.
TEMPORARY INSURANCE AGREEMENT
Omitted 1 Page
SCHEDULE D, PART I
(Effective July 1, 1986)
Reinsurance Premium Rates
Retirement Series Flexible Premium Adjustable Life
(Exceptional Retirement Life II)
and Flexible Premium Other Insured Rider
Standard Risks
For reinsurance ceded by the REINSURED to the LINCOLN not in excess of
$5,000,000 on any one life under all agreements, the premium shall be the
attached current cost of insurance rates charged the insured per thousand or
reinsurance net amount at risk less the following percentages:
POLICY YEAR
CESSION TYPE 1 2-10 11+
------------ - ---- ---
Automatic 100% 37% 20%
Facultative 100% 24% 20%
Reinsurance ceded by the REINSURED to the LINCOLN in amounts in excess of
$5,000,000 on any one life under all agreements shall be reinsured under the
terms of the July 1, 1977, Risk
Premium Reinsurance agreement between the
REINSURED and the LINCOLN.
SUBSTANDARD EXTRA PREMIUMS
The reinsurance premium per substandard extra table will be the substandard
extra premium charged the insured less the applicable percentage shown above.
MORTALITY CHARGES
Omitted 2 Pages
SCHEDULE D, PART II
(Effective July 1, 1986)
Reinsurance Premium Rates
Flexible Premium Adjustable Life (Exceptional Retirement Life II)
and Flexible Premium Other Insured Rider
Standard Risks
For reinsurance ceded by the REINSURED to the LINCOLN not in excess of
$5,000,000 on any one life under all agreements, the premium shall be the
attached current cost of insurance rates charged the insured per thousand or
reinsurance net amount at risk less the following percentages:
POLICY YEAR
CESSION TYPE 1 2-10 11+
------------ - ---- ---
Automatic 100% 37% 20%
Facultative 100 24 20
Reinsurance ceded by the REINSURED to the LINCOLN in amounts in excess of
$5,000,000 on any one life under all agreements shall be reinsured under the
terms of the July 1, 1977, Risk
Premium Reinsurance agreement between the
REINSURED and the LINCOLN.
SUBSTANDARD EXTRA PREMIUMS
The reinsurance premium per substandard extra table will be the substandard
extra premium charged the insured less the applicable percentage shown above.
MORTALITY CHARTS
Omitted 4 Pages
AMENDMENT
to the Risk
Premium Reinsurance Agreement between the
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
of
Worcester, Massachusetts,
hereinafter referred to as the "REINSURED",
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
of
Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN,"
effective August 1, 1983.
On and after the first day of January, 1987, the retention limit of the
REINSURED shall be that shown in the revised Schedule A, attached hereto. This
retention shall apply to reinsurance ceded after the effective date hereof and
to existing reinsurance ceded before the effective date hereof in accordance
with the "INCREASE IN LIMIT OF RETENTION" article of the reinsurance agreement
of which this amendment is a part, except that Waiver of Premium Disability and
Accidental Death Benefits reinsurance shall be reduced on the first policy
anniversary on and after the first day of January, 1987.
It is expressly understood and agreed that the provisions of this
amendment shall be subject to all the terms and conditions of the reinsurance
agreement of which this amendment is a part which do not conflict with the terms
hereof.
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By /s/ By /s/ Xxxxxx X. Xxxxx, Xx.
------------------------ ---------------------------
Date March 3, 1987 Date March 3, 1987
------------------------ ---------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
By /s/ By /s/
------------------------ ---------------------------
Vice President Assistant Secretary
Date 3/11/87 Date 3-10-87
------------------------ ---------------------------
Revision No. 6
SCHEDULE A
(Effective January 1, 1987)
Retention Limits of the REINSURED
Life
STANDARD RISKS,
SPECIAL CLASSES SPECIAL CLASSES SPECIAL CLASSES
A, B, C, & D, AND E, F, & H, AND J, L, & P, AND
FLAT EXTRAS FLAT EXTRAS OF FLAT EXTRAS OF
AGES OF $10.00 OR LESS (a) $10.01-$20.00 (b) $20.01 AND OVER
---- --------------------- ----------------- ---------------
0 $ 400,000 $200,000 $100,000
1-17 800,000 600,000 200,000
18-60 1,000,000 700,000 400,000
61-70 700,000 500,000 200,000
71-75 300,000 200,000 100,000
76-80 200,000 100,000 50,000
(a) Spouse's Insurance Rider not available above Class D.
(b) Term policies and Term Riders not available above class H.
Notes: (1) The above maximum limits are also the maximums on any one life
for all plans and riders combined.
(2) There are conditions where the retention may be limited,
such as in aviation, Armed forces personnel, certain
avocations, and medical classifications.
CIVILIAN AVIATION:
PASSENGERS UNDERWRITING ACTION RETENTION
---------- ------------------- ---------
Company owned business planes
To 200 hours annually Standard $1,000,000
Over 200 hours annually Individual Consideration* 500,000
Charter Flying
To 100 hours annually Standard 500,000
Over 100 hours annually Individual Consideration* 300,000
Private business or pleasure
To 100 hours annually Standard 500,000
Over 100 hours annually Individual Consideration* 300,000
Pilots and Crew Members 300,000
*Require complete details of type of planes and equipment, flying terrain and
qualifications of pilots.
ARMED FORCES:
Active Duty personnel, Reserves alerted,
National Guard alerted, ROTC final college
year, West Point Cadets, Annapolis Midshipmen,
Air Force and Coast Guard Academy Cadets
AGES OFFICERS ENLISTED PERSONNEL*
---- -------- -------------------
24 and Under $100,000 $50,000
25 and Over 150,000 100,000
(Submarine Service and Hazardous
Special Services, Paratroopers
and Airborne Infantry are not
eligible.)
Doctors, Dentists and Allied Specialists $100,000 ------
Civilian participants in Reserve Programs entering on active duty for up to six
months only, with remaining military service obligation to be completed in Ready
Reserve
AGES
----
All 150,000 100,000
---
*Enlisted Personnel (Pay Grades E-1 Through E-3 are not eligible.)
AMENDMENT
to the Risk
Premium Reinsurance Agreement between the
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
of
Worcester, Massachusetts,
hereinafter referred to as the "REINSURED",
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
of
Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN,"
effective August 1, 1983.
The REINSURED'S plans to be reinsured under the above-mentioned
reinsurance agreement on and after the first day of October, 1987, shall be
those specified in the Appendix I, attached hereto.
It is expressly understood and agreed that the provisions of this
amendment shall be subject to all the terms and conditions of the reinsurance
agreement of which this amendment is a part which do not conflict with the terms
hereof.
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By /s/ By /s/ Xxxxxx X. Xxxxx, Xx.
------------------------ ---------------------------
Date 4/19/88 Date April 19, 1988
------------------------ ---------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
By /s/ By /s/
------------------------ ---------------------------
Vice President Assistant Secretary
Date 5/12/88 Date May 10, 1988
------------------------ ---------------------------
Revision No. 7
AMENDMENT
to the Risk Premium Reinsurance Agreement between the
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
of
Worcester, Massachusetts,
hereinafter referred to as the "REINSURED",
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
of
Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN,"
effective August 1, 1983.
It is hereby agreed that on and after the first day of January, 1987,
reinsurance ceded by the REINSURED to the LINCOLN in amounts in excess of
$5,000,000 on any one life under all agreements shall be reinsured under the
terms of the January 1, 1987, Risk Premium Reinsurance agreement between the
REINSURED and the LINCOLN.
It is expressly understood and agreed that the provisions of this
amendment shall be subject to all the terms and conditions of the reinsurance
agreement of which this amendment is part which do not conflict with the terms
hereof.
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By /s/ By /s/ Xxxxxx X. Xxxxx, Xx.
------------------------ ---------------------------
Date November 10, 1987 Date November 10, 1987
------------------------ ---------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
By /s/ By /s/
------------------------ ---------------------------
Vice President Assistant Secretary
Date 11/17/87 Date 11-16-87
------------------------ ---------------------------
Revision No. 8
NOTICE OF CHANGE
to the Risk Premium Reinsurance Agreement between the
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
of
Worcester, Massachusetts,
hereinafter referred to as the "REINSURED",
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
of
Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN,"
effective August 1, 1983.
All references to "Conditional Receipt" in the above-mentioned
reinsurance agreement shall be replaced with "Temporary Insurance Agreement."
It is expressly understood and agreed that the provisions of this
amendment shall be subject to all the terms and conditions of the reinsurance
agreement of which this amendment is part which do not conflict with the terms
hereof.
A copy of this Notice of Change was sent to the REINSURED.
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
By /s/
------------------------
Vice President
Date 1/19/88
------------------------
By /s/
------------------------
Date January 15, 1988
------------------------
Revision No. 9
APPENDIX I
Insurance Subject to Reinsurance under this Agreement
A. One-third of the REINSURED'S entire excess of reinsurance it accepts
from SMA Life Assurance Company of Dover,
Delaware, of the following plans
bearing register dates in the range shown below to insureds having surnames
beginning with the letters of the alphabet as shown below.
DATES LETTERS
PLAN FROM THROUGH FROM THROUGH
---- ---- ------- ---- -------
Flexible Premium Adjustable Life
(Form 1012-83) 8-1-83 6-30-86 A Z
Exceptional Retirement Life
(Form 1016-84) 5-14-84 6-30-86 A Z
Flexible Premium Other Insured Rider 9-1-84 -- A Z
Flexible Premium Adjustable Life (Exceptional Life
II) Form 1012-86) 7-1-86 -- A Z
Retirement Series Flexible Premium Adjustable Life
(Exception Retirement Life II) (Form 1016-86) 7-1-86 -- A Z
Flexible Premium Variable Life
(Form 1018-87) 10-1-87 -- A Z
B. Continuations of the REINSURED'S issues of any of the plans listed
above, provided the original policy was reinsured with the LINCOLN under
this or another reinsurance agreement.
5/19/88 LETTER
LINCOLN NATIONAL REINSURANCE
Omitted 4 Pages
AMENDMENT
to the Risk Premium Reinsurance Agreement (the "Agreement") between the
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
of
Worcester, Massachusetts,
hereinafter referred to as the "REINSURED",
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
of
Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN,"
Effective August 1, 1983.
Except for additional coverage provided in Schedule B, Part I, the
LINCOLN shall have no liability on and after the first day of March, 1988, under
the Agreement under facultative applications for reinsurance unless the
REINSURED has accepted the LINCOLN'S offer to reinsure.
It is expressly understood and agreed that the provisions of this
amendment shall be subject to all the terms and conditions of the reinsurance
agreement of which this amendment is a part which do not conflict with the terms
hereof.
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Signed at Worcester, MA
By /s/ By /s/ Xxxxxx X. Xxxxx, Xx.
------------------------ ---------------------------
Date July 15, 1988 Date July 15, 1988
------------------------ ---------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Signed at Fort Xxxxx, Indiana
By /s/ By /s/
------------------------ ---------------------------
Vice President Assistant Secretary
Date 7/26/88 Date July 25, 1988
------------------------ ---------------------------
Revision No. 10
SCHEDULE B, PART I
Conditional Receipt
In addition to the automatic coverage otherwise provided under this
agreement, if the REINSURED shall become liable, as a result of having issued a
conditional receipt, for a death claim of an amount which, together with the
amount retained by the REINSURED under previously-issued policies, if any,
exceeds its own limit of retention applicable to the mortality class, plan of
insurance, and age at issue for which a premium was collected, the LINCOLN shall
accept reinsurance of such excess automatically in an amount not to exceed
one-third of $500,000.
This additional automatic coverage shall apply to insurance which is
covered under this agreement (as specified in paragraph 1 of the "REINSURANCE
COVERAGE" article) but which does not meet all the conditions outlined in
paragraph 2 of the "AUTOMATIC AND FACULTATIVE REINSURANCE" article. In any case,
this additional reinsurance shall terminate when facultative reinsurance is
completed.
A copy of any conditional receipt form of the REINSURED issued in
connection with any policy form eligible for reinsurance under this agreement is
attached as Schedule B, Part II. The REINSURED shall notify the LINCOLN
immediately of any change in such form.
CONDIITIONAL RECEIPT
Omitted 3 Pages
8/25/88 LETTER
LINCOLN NATIONAL REINSURANCE
Omitted 1 Page
8/16/85 LETTER
STATE MUTUAL COMPANIES
Omitted 1 Page
7/5/88 MEMO
MORTALITY RATE REDUCTIONS
Omitted 1 Page
2/8/89 LETTER
LINCOLN NATIONAL REINSURANCE
Omitted 1 Page
1/16/89 LETTER
STATE MUTUAL COMPANIES
Omitted 1 Page
12/15/88 MEMO
PREFERRED RATES CLASSES
Omitted 2 Pages
AMENDMENT
to the Risk Premium Reinsurance Agreement (the "Agreement") between the
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
of
Worcester, Massachusetts,
hereinafter referred to as the "REINSURED",
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
of
Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN,"
effective August 1, 1983.
The REINSURED'S plans to be reinsured under the Agreement on and after
the fifteenth day of May, 1989, shall be those specified in the Appendix I,
attached hereto.
It is expressly understood and agreed that the provisions of this
amendment shall be subject to all the terms and conditions of the reinsurance
agreement of which this amendment is a part which do not conflict with the terms
hereof.
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Signed at Worcester, MA
By /s/ By /s/ Xxxxxx X. Xxxxx, Xx.
------------------------ ---------------------------
Title VP & Actuary Title AVP & Actuary
------------------------ ---------------------------
Date July 11, 1989 Date July 11, 1989
------------------------ ---------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Signed at Fort Xxxxx, Indiana
By /s/ By /s/
------------------------ ---------------------------
Vice President Assistant Secretary
Date 7/18/89 Date July 18, 1989
------------------------ ---------------------------
Revision No. 11
APPENDIX I
Insurance Subject to Reinsurance under this Agreement
A. One-third of the REINSURED'S entire excess of reinsurance it
accepts from SMA Life Assurance Company of Dover,
Delaware, of the
following plans bearing register dates in the range shown below to insureds
having surnames beginning with the letters of the alphabet as shown below.
DATES LETTERS
PLAN FROM THROUGH FROM THROUGH
---- ---- ------- ---- -------
Flexible Premium Adjustable Life
(Form 1012-83) 8-1-83 6-30-86 A Z
Exceptional Retirement Life
(Form 1016-84) 5-14-84 6-30-86 A Z
Flexible Premium Other Insured Rider 9-1-84 -- A Z
Flexible Premium Adjustable Life (Exceptional Life
II) Form 1012-86) 7-1-86 -- A Z
Retirement Series Flexible Premium Adjustable Life
(Exception Retirement Life II) (Form 1016-86) 7-1-86 -- A Z
Flexible Premium Variable Life
(Form 1018-87) 10-1-87 -- A Z
Exceptional Life Plus 5-15-89 -- A Z
B. Continuations of the REINSURED'S issues of any of the plans listed above,
provided the original policy was reinsured with the LINCOLN under this or
another reinsurance agreement.
AMENDMENT
to the Risk Premium Reinsurance Agreement (the "Agreement")
effective August 1, 1983, between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA of Worcester, Massachusetts,
hereinafter referred to as the "REINSURED",
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY of Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN,"
1. On and after the first day of February, 1988, the retention limit of the
REINSURED shall be that shown in the revised Schedule A, attached hereto. This
retention shall apply to reinsurance ceded after the effective date hereof.
2. It is hereby agreed that the Arbitration Schedule, attached hereto,
shall be added to the Agreement and the "ARBITRATION" article of the Agreement
shall be replaced with the following:
"ARBITRATION
It is the intention of the REINSURED and the LINCOLN that the customs
and practices of the insurance and reinsurance industry shall be given
full effect in the operation and interpretation of this Agreement. The
parties agree to act in all things with the highest good faith. If the
REINSURED and the LINCOLN cannot mutually resolve a dispute which
arises out of or relates to this Agreement, however, the dispute shall
be decided through arbitration as set forth in the Arbitration
Schedule. The arbitrators shall base their decision on the terms and
conditions of this Agreement plus, as necessary, on the customs and
practices of the insurance and reinsurance industry rather than solely
on a strict interpretation of the applicable law. There shall be no
appeal from their decision, except that either party may petition a
court having jurisdiction over the parties and the subject matter to
reduce the arbitrators' decision to judgment."
It is expressly understood and agreed that the provisions of this
amendment shall be subject to all the terms and conditions of the reinsurance
agreement of which this amendment is a part which do not conflict with the terms
hereof.
1
Agreement No. 11/Revision No. 12
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Signed at Worcester, MA
By /s/ By /s/ Xxxxxx X. Xxxxx, Xx.
------------------------ ---------------------------
Title VP & Actuary Title AVP & Actuary
------------------------ ---------------------------
Date February 27, 1991 Date February 16, 1991_
------------------------ ---------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Signed at Fort Xxxxx, Indiana
By /s/ By /s/
------------------------ ---------------------------
Vice President Assistant Secretary
Date 3-8-91 Date March 7, 1991
------------------------ ---------------------------
2
SCHEDULE A
(Effective February 1, 1988)
Retention Limits of the REINSURED
LIFE
STANDARD RISKS,
SPECIAL CLASSES SPECIAL CLASSES SPECIAL CLASSES
A, B, C, & D, AND E, F, & H, AND J, L, & P, AND
FLAT EXTRAS FLAT EXTRAS OF FLAT EXTRAS OF $20.01
AGES OF $10.00 OR LESS (A) $10.01-$20.00 (B) AND OVER
---- --------------------- ----------------- --------
0 $ 400,000 $200,000 $100,000
1-17 800,000 600,000 200,000
18-60 1,000,000 700,000 400,000
61-70 700,000 500,000 200,000
71-75 300,000 200,000 100,000
76-80 200,000 100,000 50,000
(a) Spouse's Insurance Rider not available above Class D.
(b) Term policies and Term Riders not available above class H.
Notes: (1) The above maximum limits are also the maximums on any one
life for all plans and riders combined.
(2) There are conditions where the retention may be
limited, such as in aviation, Armed forces personnel,
certain avocations, and medical classifications.
(3) The minimum size reinsurance case will be $25,000.
CIVILIAN AVIATION:
PASSENGERS UNDERWRITING ACTION RETENTION
---------- ------------------- ---------
Company owned business planes
To 200 hours annually Standard $1,000,000
Over 200 hours annually Individual Consideration* 500,000
Charter Flying
To 100 hours annually Standard 500,000
Over 100 hours annually Individual Consideration* 300,000
Private business or pleasure
To 100 hours annually Standard 500,000
Over 100 hours annually Individual Consideration* 300,000
Pilots and Crew Members 300,000
*Require complete details of type of planes and equipment, flying terrain and
qualifications of pilots.
3
ARMED FORCES:
Active Duty personnel, Reserves alerted,
National Guard alerted, ROTC final college
year, West Point Cadets, Annapolis Midshipmen,
Air Force and Coast Guard Academy Cadets
AGES OFFICERS ENLISTED PERSONNEL*
---- -------- -------------------
0-24 $100,000 $ 50,000
Over 24 150,000 100,000
(Submarine Service and Hazardous
Special Services, Paratroopers
and Airborne Infantry are not
eligible.)
Doctors, Dentists and Allied Specialists $200,000 ------
Civilian participants in Reserve Programs entering on active duty for up to six
months only, with remaining military service obligation to be completed in Ready
Reserve
Ages
All 150,000 100,000
---
*Enlisted Personnel (Pay Grades E-1 Through E-3 are not eligible.)
CORONARY HISTORY: When a combination Table and Flat Extra rating is necessary.
AGES RETENTION
---- ---------
0-60 $300,000
61-70 150,000
71-80 50,000
WAIVER OF PREMIUM DISABILITY
Amount Issued
ACCIDENTAL DEATH BENEFITS
Amount Issued
*Require complete details of type of planes and equipment, flying terrain and
qualifications of pilots.
4
ARBITRATION SCHEDULE
To initiate arbitration, either the REINSURED or the LINCOLN shall
notify the other party in writing of its desire to arbitrate, stating the nature
of its dispute and the remedy sought. The party to which the notice is sent
shall respond to the notification in writing within ten (10) days of its
receipt.
The arbitration hearing shall be before a panel of three arbitrators,
each of whom must be a present or former officer of a life insurance company. An
arbitrator may not be a present or former officer, attorney, or consultant of
the REINSURED or the LINCOLN or eithers' affiliates.
The REINSURED and the LINCOLN shall each name five (5) candidates to serve as an
arbitrator. The REINSURED and the LINCOLN shall each choose one candidate from
the other party's list, and these two candidates shall serve as the first two
arbitrators. If one or more candidates so chosen shall decline to serve as an
arbitrator, the party which named such candidate shall add an additional
candidate to its list, and the other party shall again choose one candidate from
the list. This process shall continue until two arbitrators have been chosen and
have accepted. The REINSURED and the LINCOLN shall each present their initial
lists of five (5) candidates by written notification to the other party within
twenty-five (25) days of the date of the mailing of the notification initiating
the arbitration. Any subsequent additions to the list which are required shall
be presented within ten (10) days of the date the naming party receives notice
that a candidate that has been chosen declines to serve.
The two arbitrators shall then select the third arbitrator. If the two
arbitrators cannot agree on the choice of a third, then a third arbitrator shall
be appointed in accordance with the Indiana Uniform Arbitration Act, Xxxxx Ind.
Code Xxx. 34-4-2-4. Once chosen, the arbitrators are empowered to decide all
substantive and procedural issues by a majority of votes.
It is agreed that each of the three arbitrators should be impartial regarding
the dispute and should resolve the dispute on the basis described in the
"ARBITRATION" article. Therefore, at no time will either the REINSURED or the
LINCOLN contact or otherwise communicate with any person who is to be or has
been designated as a candidate to serve as an arbitrator concerning the dispute,
except upon the basis of jointly drafted communications provided by both the
REINSURED and the LINCOLN to inform those candidates actually chosen as
arbitrators of the nature and facts of the dispute. Likewise, any written or
oral arguments provided to the arbitrators concerning the dispute shall be
coordinated with the other party and shall be provided simultaneously to the
other party or shall take place in the presence of the other party. Further, at
no time shall any arbitrator be informed that the arbitrator has been named or
chosen by one party or the other.
5
The arbitration hearing shall be held on the date fixed by the arbitrators. In
no event shall this date be later than six (6) months after the appointment of
the third arbitrator. As soon as possible, the arbitrators shall establish
prearbitration procedures as warranted by the facts and issues of the particular
case. At least ten (10) days prior to the arbitration hearing, each party shall
provide the other party and the arbitrators with a detailed statement of the
facts and arguments it will present at the arbitration hearing. The arbitrators
may consider any relevant evidence; they shall give the evidence such weight as
they deem it entitled to after consideration of any objections raised concerning
it. The party initiating the arbitration shall have the burden of proving its
case by a preponderance of the evidence. Each party may examine any witnesses
who testify at the arbitration hearing. Within twenty (20) days after the end of
the arbitration hearing, the arbitrators shall issue a written decision that
sets forth their findings and any award to be paid as a result of the
arbitration, except that the arbitrators may not award punitive or exemplary
damages. In their decision, the arbitrators shall also apportion the costs of
arbitration, which shall include, but not limited to, their own fees and
expenses.
6
AMENDMENT
to the Risk Premium Reinsurance Agreement (the "Agreement")
effective August 1, 1983, between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA of Worcester, Massachusetts,
hereinafter referred to as the "REINSURED",
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY of Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN."
1. For reinsurance ceded automatically on and after the first day of
January, 1991, under the Agreement, the sum of the amount of insurance already
in force on the life and the amount applied for currently, in all companies,
shall not exceed the following amounts.
LIFE INSURANCE
AGES WAIVER OF PREMIUM ACCIDENTAL DEATH
0-15 $ 6,500,000 $300,000
16-65 $10,000,000 None
66-80 $ 3,500,000 None
2. On and after the first day of January, 1991, the REINSURED may cede
and the LINCOLN shall accept automatic amounts of reinsurance not to exceed
those described in the Schedule B, attached hereto.
It is expressly understood and agreed that the provisions of this
amendment shall be subject to all the terms and conditions of the reinsurance
agreement of which this amendment is a part which do not conflict with the terms
hereof.
Agreement No. 11/Revision No. 13
1
Agreement No. 11/Revision No. 13
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Signed at Worcester, MA
By /s/ By /s/ Xxxxxx X. Xxxxx, Xx.
------------------------ ---------------------------
Title VP & Actuary Title AVP & Actuary
------------------------ ---------------------------
Date February 27, 1991 Date February 26, 1991_
------------------------ ---------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Signed at Fort Xxxxx, Indiana
By /s/ By /s/
------------------------ ---------------------------
Vice President Assistant Secretary
Date 3-8-91 Date March 7, 1991
------------------------ ---------------------------
2
SCHEDULE B
(Effective January 1, 1991)
Maximum Amount which the REINSURED may cede Automatically
Life
To LINCOLN:
OVER
STANDARD RISKS, SPECIAL SPECIAL CLASSES SPECIAL CLASSES J, SPECIAL CLASS P
A, B, C, & D, AND FLAT E, F, & H, AND FLAT L, & P, AND FLAT OR EQUIVALENT
EXTRAS OF EXTRAS OF EXTRAS OF $20.01 TOTAL EXTRA
AGES $10.00 OR LESS $10.01-$20.00 AND OVER PREMIUM
---- -------------- ------------- -------- -------
0 $ 800,000 $ 400,000 $200,000 None
1-17 1,600,000 1,200,000 400,000 None
18-60 2,000,000 1,400,000 800,000 None
61-70 1,400,000 1,000,000 400,000 None
71-75 600,000 400,000 200,000 None
76-80 400,000 200,000 100,000 None
Over 80 None None None None
To all Reinsurers:
OVER
STANDARD RISKS, SPECIAL SPECIAL CLASSES SPECIAL CLASSES J, SPECIAL CLASS P
A, B, C, & D, AND FLAT E, F, & H, AND FLAT L, & P, AND FLAT OR EQUIVALENT
EXTRAS OF EXTRAS OF EXTRAS OF $20.01 TOTAL EXTRA
AGES $10.00 OR LESS $10.01-$20.00 AND OVER PREMIUM
---- -------------- ------------- -------- -------
0 $2,400,000 $1,200,000 $ 600,000 None
1-17 4,800,000 3,600,000 1,200,000 None
18-60 6,000,000 4,200,000 2,400,000 None
61-70 4,200,000 3,000,000 1,200,000 None
71-75 1,800,000 1,200,000 600,000 None
76-80 1,200,000 600,000 300,000 None
Over 80 None None None None
WAIVER OF PREMIUM DISABILITY
None
ACCIDENTAL DEATH BENEFITS
None
3
AMENDMENT
to the Risk Premium Reinsurance Agreement (the "Agreement")
effective August 1, 1983, between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA of Worcester, Massachusetts,
hereinafter referred to as the "REINSURED",
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY of Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN."
1. The REINSURED'S plans to be reinsured under the Agreement on and after
the first day of December, 1990, shall be those specified in the Appendix I,
attached hereto.
2. On and after the first day of December, 1990, for joint life policies of
the REINSURED'S Exceptional Advantage (First to Die Universal Life) plan, the
annual gross premium rate shall equal .95 times the quantity (A + B); where A is
equal to the applicable annual gross premium rate as described in Schedule D,
Part II, of the Agreement for the older insured and B is equal to the applicable
annual gross premium rate as described in Schedule D, Part II, of the Agreement
for the younger insured.
It is expressly understood and agreed that the provisions of this
amendment shall be subject to all the terms and conditions of the reinsurance
agreement of which this amendment is a part which do not conflict with the terms
hereof.
1
Agreement No. 11/Revision No. 14
IN WITNESS WHEREOF the parties hereto have caused this amendment to be executed
in duplicate on the dates shown below.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Signed at Worcester, MA
By /s/ By /s/ Xxxxxx X. Xxxxx, Xx.
------------------------ ---------------------------
Title VP & Actuary Title AVP & Actuary
------------------------ ---------------------------
Date February 27, 1991 Date February 26, 1991
------------------------ ---------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Signed at Fort Xxxxx, Indiana
By /s/ By /s/
------------------------ ---------------------------
Vice President Assistant Secretary
Date 3-8-91 Date March 7, 1991
------------------------ ---------------------------
2
APPENDIX I
Insurance Subject to Reinsurance under this Agreement
The REINSURED'S entire excess of its issues it accepts from SMA Life Assurance
Company of Dover,
Delaware, of the following plans bearing register dates in the
range shown below to insureds having surnames beginning with the letters of the
alphabet as shown below.
A. Automatic Reinsurance. One-third of the reinsurance the REINSURED cedes
automatically of the insurance specified below shall be ceded under this
Agreement.
DATES LETTERS
PLAN FROM THROUGH FROM THROUGH
---- ---- ------- ---- -------
Flexible Premium Adjustable Life
(Form 1012-83) 08-1-83 6-30-86 A Z
Exceptional Retirement Life
(Form 1016-84) 05-14-84 6-30-86 A Z
Flexible Premium Other Insured Rider 09-01-84 -- A Z
Flexible Premium Adjustable Life (Exceptional Life
II) Form 1012-86) 07-01-86 -- A Z
Retirement Series Flexible Premium Adjustable Life
(Exception Retirement Life II) (Form 1016-86) 07-01-86 -- A Z
Flexible Premium Variable Life
(Form 1018-87) 10-01-87 -- A Z
Exceptional Life Plus 05-15-89 -- A Z
Exceptional Advantage (First to Die
Universal Life (Form 1021-90) 12-01-90 -- A Z
B. Facultative Reinsurance. One hundred percent of the reinsurance the
REINSURED cedes facultatively of the insurance specified above to insured
having surnames beginning with the letters A through Z shall be ceded under
this agreement provided the REINSURED has accepted the LINCOLN'S offer to
reinsure.
C. Continuations. Continuations to the insurance specified above shall be
ceded under this agreement provided the original policy was reinsured with
the LINCOLN under this or another agreement. The percentage of reinsurance
ceded to LINCOLN shall equal the percentage of the original policy ceded to
LINCOLN.
3
5/23/91 LETTER
Omitted 5 Pages
AMENDMENT
to the Risk Premium Reinsurance Agreement (the "Agreement")
effective August 1, 1983, between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA of Worcester, Massachusetts,
hereinafter referred to as the "REINSURED",
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY of Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN."
1. On and after the first day of August, 1983, paragraph 5 shall be
added to the "AUTOMATIC AND FACULTATIVE REINSURANCE" article under the Agreement
and shall read as follows:
"5. Provided the requirements in subparagraphs c through e of the
paragraph 1 of this article are met, whenever the REINSURED
retains less than its maximum retention limit for the plan, age
and mortality classification, it may cede and the LINCOLN shall
accept automatically amounts equal to 100% of the amount retained
by the REINSURED on the policy. Such business shall be referred to
as "Special Automatic Reinsurance."
2. The provisions of this amendment shall be subject to all the terms and
conditions of the Agreement which do not conflict with the terms hereof.
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Signed at Worcester, MA
By /s/ By /s/ Xxxxxx X. Xxxxx, Xx.
------------------------ ---------------------------
Title VP & Actuary Title AVP & Actuary
------------------------ ---------------------------
Date 1/13/92 Date January 13, 1992
------------------------ ---------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Signed at Fort Xxxxx, Indiana
By /s/ By /s/
------------------------ ---------------------------
Vice President Assistant Secretary
Date 1-22-92 Date January 21, 1229
------------------------ ---------------------------
Agreement No. 11/Revision No. 16
AMENDMENT
to the Risk Premium Reinsurance Agreement (the "Agreement")
effective August 1, 1983, between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA of Worcester, Massachusetts,
hereinafter referred to as the "REINSURED",
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY of Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN."
1. The REINSURED'S plans to be reinsured under the Agreement on and
after the first day of October, 1991, shall be those specified in the Appendix
I, attached hereto.
2. The premium rates labeled "EL II ANNUAL" as described in Schedule D,
Part II, of the Agreement shall apply to reinsurance of the REINSURED'S New VEL
91 Variable Universal Life Plan ceded under the Agreement on and after the first
day of October ,1991.
3. The provisions of this amendment shall be subject to all the terms and
conditions of the Agreement which do not conflict with the terms hereof.
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Signed at Worcester, MA
By /s/ By /s/ Xxxxxx X. Xxxxx, Xx.
------------------------ ---------------------------
Title VP & Actuary Title AVP & Actuary
------------------------ ---------------------------
Date February 17, 1992 Date February 17,1992
------------------------ ---------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Signed at Fort Xxxxx, Indiana
By /s/ By /s/
------------------------ ---------------------------
Vice President Assistant Secretary
Date 2/25/92 Date 2/23/92
------------------------ ---------------------------
1
Agreement No. 11/Revision No. 17
APPENDIX I
Insurance Subject to Reinsurance under this Agreement
The REINSURED'S entire excess of its issues it accepts from SMA Life Assurance
Company of Dover,
Delaware, of the following plans bearing register dates in the
range shown below to insureds having surnames beginning with the letters of the
alphabet as shown below.
A. Automatic Reinsurance. One-third of the reinsurance the REINSURED
cedes automatically of the insurance specified below shall be ceded
under this Agreement.
DATES LETTERS
PLAN FROM THROUGH FROM THROUGH
---- ---- ------- ---- -------
Flexible Premium Adjustable Life
(Form 1012-83) 08-1-83 6-30-86 A Z
Exceptional Retirement Life
(Form 1016-84) 05-14-84 6-30-86 A Z
Flexible Premium Other Insured Rider 09-01-84 -- A Z
Flexible Premium Adjustable Life (Exceptional Life
II) Form 1012-86) 07-01-86 -- A Z
Retirement Series Flexible Premium Adjustable Life
(Exception Retirement Life II) (Form 1016-86) 07-01-86 -- A Z
Flexible Premium Variable Life
(Form 1018-87) 10-01-87 -- A Z
Exceptional Life Plus 05-15-89 -- A Z
Exceptional Advantage (First to Die
Universal Life (Form 1021-90) 12-01-90 -- A Z
New VEL 91 Variable Universal Life 10-01-91 -- A Z
2
B. Facultative Reinsurance. One hundred percent of the reinsurance the
REINSURED cedes facultatively of the insurance specified above to insured
having surnames beginning with the letters A through Z shall be ceded under
this agreement provided the REINSURED has accepted the LINCOLN'S offer to
reinsure.
C. Continuations. Continuations to the insurance specified above shall be
ceded under this agreement provided the original policy was reinsured with
the LINCOLN under this or another agreement. The percentage of reinsurance
ceded to LINCOLN shall equal the percentage of the original policy ceded to
LINCOLN.
3
AMENDMENT
to the Risk Premium Reinsurance Agreement (the "Agreement")
effective August 1, 1983, between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA of Worcester, Massachusetts,
hereinafter referred to as the "REINSURED",
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY of Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN."
1. For reinsurance ceded automatically on and after the first day of
May, 1992, under the Agreement, the sum of the amount of insurance already in
force on the life and the amount applied for currently, in all companies, shall
not exceed the following amounts.
LIFE INSURANCE
AGES WAIVER OF PREMIUM ACCIDENTAL DEATH
---- ----------------- -----------------
0-15 $ 6,500,000 $300,000
16-65 10,000,000 None
66-70 $ 5,000,000 None
71-80 $ 3,500,000 None
2. The provisions of this amendment shall be subject to all the terms and
conditions of the Agreement which do not conflict with the terms hereof.
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Signed at Worcester, MA
By /s/ By /s/ Xxxxxx X. Xxxxx, Xx.
------------------------ ---------------------------
Title VP & Actuary Title AVP& Actuary
------------------------ ---------------------------
Date July 7, 1992 Date July 7,1992
------------------------ ---------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Signed at Fort Xxxxx, Indiana
By /s/ By /s/
------------------------ ---------------------------
By /s/ By /s/
------------------------ ---------------------------
Vice President Assistant Secretary
Date 7/10/92 Date 7/10/92
------------------------ ---------------------------
Agreement No. 11/Revision No. 18
AMENDMENT
to the Risk Premium Reinsurance Agreement (the "Agreement")
effective August 1, 1983, between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA of Worcester, Massachusetts,
hereinafter referred to as the "REINSURED",
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY of Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN."
1. The REINSURED'S plans to be reinsured under the Agreement on and
after the first day of January, 1993, shall be those specified in the Appendix
I, attached hereto.
2. For reinsurance ceded automatically on and after the first day of
January, 1993, under the Agreement, the sum of the amount of insurance already
in force on the life and the amount applied for currently, in all companies,
shall not exceed the following amounts.
LIFE INSURANCE
WAIVER OF PREMIUM
AGES STANDARD-TABLE P
---- ----------------
0 $ 6,500,000
1-70 10,000,000
71-80 3,500,000
AGES ACCIDENTAL
---- ----------------
0-15 $ 300,000
00-00 Xxxx
00-00 Xxxx
00-00 Xxxx
0. On and after the first day of January, 1993, the Special Automatic
Reinsurance provision under the Agreement shall terminate.
4. On and after the first day of January, 1993, reinsurance under the
agreement of any policy issued on and after the first day of January, 1989, and
for which the net amount at risk on any one life is less than $25,001 shall
terminate. In consideration for such termination, the REINSURED shall pay to the
LINCOLN a termination charge equal to the 1993 reinsurance premium.
1
Agreement No. 11/Revision No. 19
5. On and after the first day of January, 1993, reinsurance under the
agreement of any policy issued prior to the first day of January, 1987, and for
which the net amount at risk on any one life is less than $25,001 shall
terminate.
6. On and after he first day of January, 1993, the retention limit of the
REINSURED shall be that shown in the revised Schedule A, attached hereto. This
retention shall apply to reinsurance ceded after the effective date hereof and
to existing reinsurance ceded before the effective date hereof in accordance
with the "INCRREASE IN LIMIT OF RETENTION" article of the Agreement of which
this amendment is a part.
7. On and after the first day of January, 1993, the REINSURED may cede and
the LINCOLN shall accept automatically amount of reinsurance not to exceed those
described in the Schedule B, attached hereto.
8. Except as provided in Schedule B, Part I, the LINCOLN shall have no
liability under facultative applications for reinsurance unless the REINSURED
has accepted the LINCOLN'S offer to reinsure.
9. On and after the first day of January, 1993, the "MISCELLANEOUS" article
shall be added to the Agreement and shall read as follows:
"MISCELLANEOUS
1. This Agreement represents the entire agreement between the
REINSURED and the LINCOLN and supercedes, with respect to its
subject matter, any prior oral or written agreements between the
parties.
2. No modification or waiver of any provision of this
Agreement shall be effective unless set forth in a written
amendment to this Agreement which is executed by both parities. A
waiver shall constitute a waiver only with respect to the
particular circumstances for which it is given and not a waiver of
any future circumstance."
10. The provisions of this amendment shall be subject to all the terms and
conditions of the Agreement which do not conflict with the terms hereof.
2
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Signed at Worcester, MA
By /s/ By /s/
------------------------ ---------------------------
Date April 7, 1993 Date July 7,1992
------------------------ ---------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Signed at Fort Xxxxx, Indiana
By /s/ By /s/
------------------------ ---------------------------
Second Vice President Assistant Secretary
Date 4/19/93 Date 4/14/93
------------------------ ---------------------------
3
APPENDIX I
Insurance Subject to Reinsurance under this Agreement
The REINSURED'S entire excess of its issues it accepts from SMA Life Assurance
Company of Dover,
Delaware, of the following plans bearing register dates in the
range shown below to insureds having surnames beginning with the letters of the
alphabet as shown below.
A. Automatic Reinsurance. One-third of the reinsurance the REINSURED cedes
automatically of the insurance specified below shall be ceded under this
Agreement.
DATES LETTERS
PLAN PERCENTAGES FROM THROUGH FROM THROUGH
---- ----------- ---- ------- ---- -------
Flexible Premium Adjustable
Life (Form 1012-83) 33 1/3% 08-01-83 06-30-86 A Z
Exceptional Retirement Life (Form
1016-84) 33 1/3% 05-14-84 06-30-86 A Z
Flexible Premium Other Insured Rider 33 1/3% 09-01-84 12-31-92 A Z
Flexible Premium Adjustable Life
(Exceptional Life II) (Form 1012-86) 33 1/3% 07-01-86 12-31-92 A Z
Retirement Series Flexible Premium
Adjustable Life (Exception Retirement
Life II) (Form 1016-86) 33 1/3% 07-01-86 12-31-92 A Z
Flexible Premium Variable Life (Form
1018-87) 33 1/3% 10-01-87 12-31-92 A Z
Exceptional Life Plus 33 1/3% 05-15-89 12-31-92 A Z
Exceptional Advantage (First to Die
Universal Life) (Form 1021-90) 33 1/3% 12-01-90 12-31-92 A Z
New VEL 91 Variable Universal Life 33 1/3% 10-01-91 12-31-92 A Z
Flexible Premium Other Insured Rider 10% 01-01-93 -- A Z
4
DATES LETTERS
PLAN PERCENTAGES FROM THROUGH FROM THROUGH
---- ----------- ---- ------- ---- -------
Flexible Premium Adjustable Life
(Exceptional Life II) (Form 1012-86) 10% 01-01-93 -- A Z
Retirement Series Flexible Premium
Adjustable Life (Exception Retirement
Life II) (Form 1016-86) 10% 01-01-93 -- A Z
Flexible Premium Variable Life (Form
1018-87) 10% 01-01-93 -- A Z
Exceptional Life Plus 10% 01-01-93 -- A Z
Exceptional Advantage (First to Die
Universal Life) (Form 1021-90) 10% 01-01-93 -- A Z
New VEL 91 Variable Universal Life 10% 01-01-93 -- A Z
B. Facultative Reinsurance.
One hundred percent of the reinsurance the REINSURED cedes facultatively of
the insurance specified above to insured having surnames beginning with the
letters A through Z shall be ceded under this agreement provided the
REINSURED has accepted the LINCOLN'S offer to reinsure.
C. Continuations.
Continuations to the insurance specified above shall be ceded under this
agreement provided the original policy was reinsured with the LINCOLN under
this or another agreement. The percentage of reinsurance ceded to LINCOLN
shall equal the percentage of the original policy ceded to LINCOLN.
5
SCHEDULE A
(Effective January 1, 1993)
Retention Limits of the REINSURED
LIFE
STANDARD RISKS, SPECIAL
CLASSES SPECIAL CLASSES
A THROUGH H, AND FLAT J, L, & P, AND
EXTRAS OF FLAT EXTRAS OF $20.01
AGES $0 - $20.00 AND OVER
---- ----------- --------
0 $ 500,000 $ 250,000
1-60 2,000,000 1,000,000
61-70 1,000,000 500,000
71-80 500,000 250,000
Notes: (1) The above maximum limits are also the maximums on any one life for
all plans and riders combined.
(2) The minimum size reinsurance case shall be $50,001.
AVIATION
Any situation involving aviation shall use a $500,000
retention.
WAIVER OF PREMIUM DISABILITY
Fully Retained
ACCIDENTAL DEATH
Fully Retained
6
SCHEDULE B
(Effective January 1, 1993)
Maximum Amount which the REINSURED may cede Automatically
LIFE
To LINCOLN:
STANDARD RISKS, SPECIAL OVER
CLASSES SPECIAL CLASSES J, SPECIAL CLASS P
A-H, AND L, & P, AND FLAT OR EQUIVALENT
FLAT EXTRAS OF EXTRAS OF $20.01 TOTAL EXTRA
AGES $0-20.00 AND OVER PREMIUM
---- -------- -------- -------
0 $166,667 $ 83,333 None
1-60 666,667 333,333 None
61-70 333,333 166,667 None
71-80 166,667 83,333 None
Over 80 None None None
To all Reinsurers:
STANDARD RISKS, SPECIAL OVER
CLASSES SPECIAL CLASSES J, SPECIAL CLASS P
A-H, AND L, & P, AND FLAT OR EQUIVALENT
FLAT EXTRAS OF EXTRAS OF $20.01 TOTAL EXTRA
AGES $0-20.00 AND OVER PREMIUM
---- -------- -------- -------
0 $1,666,667 $ 833,333 None
1-60 6,666,667 3,333,333 None
61-70 3,333,333 1,666,667 None
71-80 1,666,667 833,333 None
Over 80 None None None
WAIVER OF PREMIUM DISABILITY
None
ACCIDENTAL DEATH BENEFITS
None
7
AMENDMENT
to the Risk Premium Reinsurance Agreement (the "Agreement")
effective August 1, 1983, between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA of Worcester, Massachusetts,
hereinafter referred to as the "REINSURED",
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY of Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN."
1. On and after the first day of January, 1993, paragraph 7 shall be added
to the "REINSURANCE COVERAGE" article under the Agreement shall be replaced with
the following:
"7. Whenever the amount of Life reinsurance under this agreement
on any one policy is less than $25,000, Life and Disability
reinsurance shall terminate. The amount or reinsurance under
this agreement shall otherwise be maintained in force without
reduction so long as the amount of insurance carried by the
REINSURED on the life remains in force without reduction,
except as provided in the "PAYMENT OF REINSURANCE PREMIUMS"
and "INCREASE IN LIMIT OF RETENTION" articles."
2. On and after the first day of January, 1993, the Appendix I under the
Agreement shall be replaced with the Appendix I, attached hereto.
3. The reinsurance percentages for the REINSURED'S cost of insurance rates
shall be as described in Schedule D, Part I, attached hereto, and shall apply to
reinsurance of the REINSURED'S Retirement Series Flexible Premium Adjustable
Life (Exceptional Retirement Life II) (Form 1016-86) plan, Flexible Premium
Other Insured Rider, and increases on the Flexible Premium Adjustable Life
(Exceptional Retirement Life I) (Form 1016-84) plan ceded under the Agreement on
and after the first day of January, 1993. Such premium rates shall apply only to
reinsurance which when added to all other reinsurance ceded by the REINSURED to
LINCOLN under all agreements does not exceed $5,000,000 on any one life.
Reinsurance ceded on the basis of such premium rates shall
(a) be subject to a minimum cession of $50.001,
(b) not be eligible for experience refunds,
(c) not be eligible for production or persistency bonuses,
(d) be eligible for premium tax reimbursement, and
1
930476/338/H10N13QD
Agreement No. 11/Revision No. 20
(e) not be reduced as set forth in the "INCREASE IN LIMIT OF
RETENTION" article until it has been in force for at least ten
years or, in the case of continuations, until the number of
years the original policy and its continuation have been in
force is at least equal to the greater of ten years and the
time period specified for reinsurance of the original policy.
4. The reinsurance percentages for the REINSURED'S cost of insurance rates
shall be as described in Schedule D, Part II, attached hereto, and shall apply
to reinsurance of the REINSURED'S Flexible Premium Adjustable Life (Exceptional
Life II) (Form 1012-86), Flexible Premium Other Insured Rider, Exceptional
Advantage (First to Die Universal Life) (Form 1021-90), New VEL 91 Variable
Universal Life (Form 1018-91) plans, increases on the Flexible Premium
Adjustable Life (Exceptional Life I) (Form 1012-83) plan, and increases on the
Flexible Premium Variable Life (VEL 87) (Form 1018-87) plan ceded under the
Agreement on and after the first day of January, 1993. Such premium rates shall
apply only to reinsurance which when added to all other reinsurance ceded by the
REINSURED to LINCOLN under all agreements does not exceed $5,000,000 on any one
life. Reinsurance ceded on the basis of such premium rates shall
(a) be subject to a minimum cession of $50.001,
(b) not be eligible for experience refunds,
(c) not be eligible for production or persistency bonuses,
(d) be eligible for premium tax reimbursement, and
(e) not be reduced as set forth in the "INCREASE IN LIMIT
OF RETENTION" article until it has been in force for at least
ten years or, in the case of continuations, until the number
of years the original policy and its continuation have been in
force is at least equal to the greater of ten years and the
time period specified for reinsurance of the original policy.
5. The premium rates as shown in Schedule D, Part III, attached hereto and
labeled "1XW3, NONSMOKER," "2XY3, SMOKER," and "3XX3, AGGREGATE," nonrefunding
and age nearest birthday shall be applied to the portion of reinsurance in
excess of $5,000,000 on any one life ceded by the REINSURED to the LINCOLN on
and after the first day of January, 1993.
6. The provisions of this amendment shall be subject to all the terms and
conditions of the Agreement which do not conflict with the terms hereof.
2
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Signed at Worcester, MA
By /s/ By /s/
------------------------ ---------------------------
Title AVP & Actuary Title VP & Actuary
------------------------ ---------------------------
Date May 24, 1993 Date May 26, 1993
------------------------ ---------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Signed at Fort Xxxxx, Indiana
By /s/ By /s/
------------------------ ---------------------------
Second Vice President Assistant Secretary
Date 6/2/93 Date 6/2/93
------------------------ ---------------------------
3
APPENDIX I
(Effective January 1, 1993)
Insurance Subject to Reinsurance under this Agreement
The REINSURED'S entire excess of its issues it accepts from SMA Life Assurance
Company of Dover, Delaware, of the following plans bearing register dates in the
range shown below to insureds having surnames beginning with the letters of the
alphabet as shown below.
A. Automatic Reinsurance. One-third of the reinsurance the REINSURED cedes
automatically of the insurance specified below shall be ceded under this
Agreement.
DATES LETTERS
PLAN PERCENTAGES FROM THROUGH FROM THROUGH
---- ----------- ---- ------- ---- -------
Flexible Premium Adjustable
Life (Exceptional Life I) (Form
1012-83) 33 1/3% 08-01-83 06-30-86 A Z
Flexible Premium Adjustable Life
(Exceptional Retirement Life I)(Form
1016-84) 33 1/3 05-14-84 06-30-86 A Z
Flexible Premium Other Insured Rider 33 1/3 09-01-84 12-31-92 A Z
Flexible Premium Adjustable Life
(Exceptional Life II) (Form 1012-86) 33 1/3 07-01-86 12-31-92 A Z
Retirement Series Flexible Premium
Adjustable Life (Exception Retirement
Life II) (Form 1016-86) 33 1/3 07-01-86 12-31-92 A Z
Flexible Premium Variable Life (VEL
87)(Form 1018-87) 33 1/3 10-01-87 12-31-92 A Z
Exceptional Life Plus 33 1/3 05-15-89 12-31-92 A Z
Exceptional Advantage (First to Die
Universal Life) (Form 1021-90) 33 1/3 12-01-90 12-31-92 A Z
New VEL 91 Variable Universal Life
(Form 1018-91) 33 1/3 10-01-91 12-31-92 A Z
4
DATES LETTERS
PLAN PERCENTAGES FROM THROUGH FROM THROUGH
---- ----------- ---- ------- ---- -------
Flexible Premium Other Insured Rider 10% 01-01-93 -- A Z
Flexible Premium Adjustable Life
(Exceptional Life II) (Form 1012-86) 10 01-01-93 -- A Z
Retirement Series Flexible Premium
Adjustable Life (Exception Retirement
Life II) (Form 1016-86) 10 01-01-93 -- A Z
Exceptional Life Plus 10 01-01-93 -- A Z
Exceptional Advantage (First to Die
Universal Life) (Form 1021-90) 10 01-01-93 -- A Z
New VEL 91 Variable Universal Life
(Form 1018-91) 10 01-01-93 -- A Z
B. Facultative Reinsurance. One hundred percent of the reinsurance the
REINSURED cedes facultatively of the insurance specified above to insured
having surnames beginning with the letters A through Z shall be ceded under
this agreement provided the REINSURED has accepted the LINCOLN'S offer to
reinsure.
C. Continuations. Continuations to the insurance specified above shall be
ceded under this agreement provided the original policy was reinsured with
the LINCOLN under this or another agreement. The percentage of reinsurance
ceded to LINCOLN shall equal the percentage of the original policy ceded to
LINCOLN.
5
SCHEDULE D, PART I
(Effective January 1, 1993)
Reinsurance Premium Rates
Retirement Series Flexible Premium Adjustable Life
(Exceptional Retirement Life II) (Form 1016-86),
Flexible Premium Other Insured Rider, and Increases on the
Flexible Premium Adjustable Life (Exceptional Retirement Life I) (Form 1016-84)
FULLY UNDERWRITTEN ISSUES
Standard Risks
The annual reinsurance premium rate for reinsurance not in excess of $5,000,000
on any one life* shall be the attached cost of insurance rates labeled "ERL II
ANNUAL" charged the insured per thousand of the net amount at risk less the
following percentages:
POLICY YEAR
1 2-10 11+
- ---- ---
100% 43% 30%
SUBSTANDARD RISKS
The substandard table extra premiums shall be the number of tables assessed the
risk times the attached appropriate rates less the above percentages.
CONTINUATIONS TO ISSUES REINSURED HEREUNDER
The reinsurance premium for policies reinsured under this agreement as
continuations shall be the appropriate premium described in this agreement;
unless the reinsurance agreement under which the original policy was reinsured
specifies otherwise, the policy duration and attained age of the insured for
purposes of calculating such premiums, shall be determined as though the
continuations were issued on the same date and at the same issue age as the
original policy.
*The premium rates in Schedule D, Part III, of this Agreement shall apply to
reinsurance in excess of $5,000,000 on any one life ceded by the REINSURED to
the LINCOLN.
6
CONTINUATIONS TO ISSUES REINSURED HEREUNDER
The reinsurance premium for continuations of policies reinsured under this
agreement shall be as described in the agreement which covers the new policy;
unless that agreement specifies otherwise, the policy duration and attained age
of the insured, for purposes of calculating such premium, shall be determined as
through the continuations were issued on the same date and at the same issue age
as the original policy. If no such agreement is in effect between the LINCOLN
and the REINSURED, reinsurance shall continue hereunder.
CONTINUATION POLICY FEE
If the premium scale applicable to a continuation contains a policy fee, a
continuation shall, for purposes of determining the policy fee only and
notwithstanding the method prescribed for calculating the basic premium, be
considered a renewal if the REINSURED has paid the LINCOLN a first-year policy
fee on reinsurance of the original policy and as a new issue if the REINSURED
has not paid the LINCOLN a policy fee on reinsurance of the original policy.
7
ILLUSTRATIONS
Omitted 2 Pages
SCHEDULE D, PART II
(Effective January 1, 1993)
Reinsurance Premium Rates
Flexible Premium Adjustable Life (Exceptional Retirement Life II)
(Form 1016-86), Flexible Premium Other Insured Rider, Exceptional Advantage
(First to Die Universal Life) (Form 1021-90), New VEL 91 Variable
Universal Life (Form 1018-91), Increases on the Flexible Premium
Adjustable Life (Exceptional Life I) (Form 1012-83),
and Increases on the Flexible Premium Variable Life (VEL 87) (Form 1018-87)
FULLY UNDERWRITTEN ISSUES
Standard Risks
The annual reinsurance premium rate for reinsurance not in excess of $5,000,000
on any one life* shall be the attached cost of insurance rates labeled "EL II
ANNUAL" charged the insured per thousand of the net amount at risk less the
following percentages:
POLICY YEAR
1 2-10 11+
- ---- ---
100% 43% 30%
SUBSTANDARD RISKS
The substandard table extra premiums shall be the number of tables assessed the
risk times the attached appropriate rates less the above percentages.
EXCEPTIONAL ADVANTAGE (FIRST TO DIE UNIVERSAL LIFE) (FORM 1021-90)
For joint life policies, the annual gross premium rate shall equal .95 times the
quantity (A+B); where A is equal to the attached applicable annual gross premium
rate labeled "EL II ANNUAL" for the older insured and B is equal to the attached
applicable annual gross premium rate labeled "EL II ANNUAL" for the younger
insured.
*The premium rates in Schedule D, Part III, of this Agreement shall apply to
reinsurance in excess of $5,000,000 on any one life ceded by the REINSURED to
the LINCOLN.
8
CONTINUATIONS TO ISSUES REINSURED HEREUNDER
The reinsurance premium for policies reinsured under this agreement as
continuations shall be the appropriate premium described in this agreement;
unless the reinsurance agreement under which the original policy was reinsured
specifies otherwise, the policy duration and attained age of the insured for
purposes of calculating such premiums, shall be determined as though the
continuations were issued on the same date and at the same issue age as the
original policy.
CONTINUATIONS TO ISSUES REINSURED HEREUNDER
The reinsurance premium for continuations of policies reinsured under this
agreement shall be as described in the agreement which covers the new policy;
unless that agreement specifies otherwise, the policy duration and attained age
of the insured, for purposes of calculating such premium, shall be determined as
through the continuations were issued on the same date and at the same issue age
as the original policy. If no such agreement is in effect between the LINCOLN
and the REINSURED, reinsurance shall continue hereunder.
CONTINUATION POLICY FEE
If the premium scale applicable to a continuation contains a policy fee, a
continuation shall, for purposes of determining the policy fee only and
notwithstanding the method prescribed for calculating the basic premium, be
considered a renewal if the REINSURED has paid the LINCOLN a first-year policy
fee on reinsurance of the original policy and as a new issue if the REINSURED
has not paid the LINCOLN a policy fee on reinsurance of the original policy.
9
ANNUAL MORTALITY CHARGES
Omitted 2 Pages
SCHEDULE D, PART III
(Effective January 1, 1993)
Reinsurance Premium Rates
The reinsurance premium rates for reinsurance ceded to LINCOLN for the portion
of reinsurance in excess of $5,000,000 on any one life shall be the rates
attached hereto and labeled "1XW3, NONSMOKER," "2XY3, SMOKER," and "3XX3,
AGGREGATE," nonrefunding and age nearest birthday.
10
ILLUSTRATIONS
Omitted 6 Pages
AMENDMENT
to the Risk Premium Reinsurance Agreement (the "Agreement")
effective August 1, 1983, between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA of Worcester, Massachusetts,
hereinafter referred to as the "REINSURED",
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY of Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN."
1. The REINSURED'S plans to be reinsured under the Agreement on and after
the first day of July, 1993, shall be those specified in the Appendix I,
attached hereto.
2. The premium rates as described in Schedule D, Part II, of the Agreement
shall apply to reinsurance of the REINSURED'S EL Plus 93 (Form 1019-93) and VEL
93 (Form 1018-83) plans ceded under the Agreement on and after the first day of
July, 1993.
3. The provisions of this amendment shall be subject to all the terms and
conditions of the Agreement which do not conflict with the terms hereof.
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Signed at Worcester, MA
By /s/ Xxxxxx X. Xxxxx, Xx. By /s/
------------------------ ---------------------------
Title AVP & Actuary Title VP & Actuary
------------------------ ---------------------------
Date September 7, 1993 Date September 7, 1993_
------------------------ ---------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Signed at Fort Xxxxx, Indiana
By /s/ By /s/
------------------------ ---------------------------
Second Vice President Assistant Secretary
Date 9/17/93 Date 9-16-93
------------------------ ---------------------------
1
931139/338/H10N2W2B
Agreement No. 11/Revision No. 21
APPENDIX I
Insurance Subject to Reinsurance under this Agreement
The REINSURED'S entire excess of its issues it accepts from SMA Life Assurance
Company of Dover, Delaware, of the following plans bearing register dates in the
range shown below to insureds having surnames beginning with the letters of the
alphabet as shown below.
A. Automatic Reinsurance. One-third of the reinsurance the REINSURED cedes
automatically of the insurance specified below shall be ceded under this
Agreement.
DATES LETTERS
PLAN PERCENTAGES FROM THROUGH FROM THROUGH
---- ----------- ---- ------- ---- -------
Flexible Premium Adjustable
Life (Exceptional Life I) (Form
1012-83) 33 1/3% 08-01-83 06-30-86 A Z
Flexible Premium Adjustable Life
(Exceptional Retirement Life I)(Form
1016-84) 33 1/3 05-14-84 06-30-86 A Z
Flexible Premium Other Insured Rider 33 1/3 09-01-84 12-31-92 A Z
Flexible Premium Adjustable Life
(Exceptional Life II) (Form 1012-86) 33 1/3 07-01-86 12-31-92 A Z
Retirement Series Flexible Premium
Adjustable Life (Exception Retirement
Life II) (Form 1016-86) 33 1/3 07-01-86 12-31-92 A Z
Flexible Premium Variable Life (VEL
87)(Form 1018-87) 33 1/3 10-01-87 12-31-92 A Z
Exceptional Life Plus 33 1/3 05-15-89 12-31-92 A Z
Exceptional Advantage (First to Die
Universal Life) (Form 1021-90) 33 1/3 12-01-90 12-31-92 A Z
New VEL 91 Variable Universal Life
(Form 1018-91) 33 1/3 10-01-91 12-31-92 A Z
2
DATES LETTERS
PLAN PERCENTAGES FROM THROUGH FROM THROUGH
---- ----------- ---- ------- ---- -------
Flexible Premium Other Insured Rider 10% 01-01-93 -- A Z
Flexible Premium Adjustable Life
(Exceptional Life II) (Form 1012-86) 10 01-01-93 -- A Z
Flexible Premium Variable Life (Form
1018-87) 10 01-01-93 -- A Z
Exceptional Life Plus 10 01-01-93 -- A Z
Exceptional Advantage (First to Die
Universal Life) (Form 1021-90) 10 01-01-93 -- A Z
New VEL 91 Variable Universal Life
(Form 1018-91) 10 01-01-93 -- A Z
EL Plus 93 (Form 1019-93) (A Universal
Life Plan) 10 07-01-93 -- A Z
VEL 93 (From 1018-93) (A Universal
Life Plan) 10 07-01-93 -- A Z
B. Facultative Reinsurance.
One hundred percent of the reinsurance the REINSURED cedes facultatively of
the insurance specified above to insured having surnames beginning with the
letters A through Z shall be ceded under this agreement provided the
REINSURED has accepted the LINCOLN'S offer to reinsure.
C. Continuations.
Continuations to the insurance specified above shall be ceded under this
agreement provided the original policy was reinsured with the LINCOLN under
this or another agreement. The percentage of reinsurance ceded to LINCOLN
shall equal the percentage of the original policy ceded to LINCOLN.
3
AUGUST 1, 1983 REINSURANCE AGREEMENT
AMENDMENT
To each Reinsurance ___ Agreement between STATE MUTUAL LIFE ASSURANCE COMPANY OF
AMERICA of Worcester, Massachusetts ("REINSURED"), ___ and THE LINCOLN NATIONAL
LIFE INSURANCE COMPANY of Fort Xxxxx, Indiana ("LINCOLN"), including but not
limited to those agreement listed on the attachment ("Reinsurance Agreements"),
but excluding any agreements ___ which already include an election ___ statement
___ provided for in Section 1.848-2(g)(8)(iii) of the Income Tax Regulations.
1. The LINCOLN and the REINSURED each represents and warrants that it is
subject to taxation under subchapter "L" of the Internal Revenue Code of 1986
(the "Code").
2. With respect to each of the Reinsurance Agreements (referred to
separately as "Agreement"), the LINCOLN and the REINSURED agree to the following
pursuant to Section 1.848-2(g)(8) of the Income Tax Regulations issued December
1992, whereby:
(a) Each party shall attached a schedule to its federal income tax return
which identifies the relevant Reinsurance Agreements for which the
joint election under the Regulation has been made;
(b) The party with net positive consideration, as defined in the
Regulation promulgated under Code Section 848, for such Agreement for
each taxable year, shall capitalize specified policy acquisition
expenses with respect to such Agreement without regard to the general
deductions limitation of Section 848(c)(1);
(c) Each party agrees to exchange information pertaining to the amount of
net consideration under such Agreement each year to ensure
consistency; and
(d) If such Agreement was entered into prior to November 15, 1991, this
election shall be effective for 1992 and for all subsequent years that
such Agreement remains in effect. If such Agreement was entered into
after November 14, 1991, this election shall be effective for the year
that the Agreement was entered into and for all subsequent years that
such Agreement remains in effect.
1
H10N1FHT/338
3. The provisions of this amendment shall be subject to all the terms and
conditions of the Agreement which do not conflict with the terms hereof.
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Signed at Worcester, MA
By /s/ Xxxxxx X. Xxxxx, Xx. By /s/
------------------------ ---------------------------
Title AVP & Actuary Title VP & Actuary
------------------------ ---------------------------
Date July 20, 1993 Date July 20, 1993
------------------------ ---------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Signed at Fort Xxxxx, Indiana
By /s/ By /s/
------------------------ ---------------------------
Second Vice President Assistant Secretary
Date 5/24/93 Date 5/24/93
------------------------ ---------------------------
2
SUMMARY OF AGREEMENTS
Omitted 1 Page
AMENDMENT
to the Risk Premium Reinsurance Agreement (the "Agreement")
effective August 1, 1983, between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA of Worcester, Massachusetts,
hereinafter referred to as the "REINSURED",
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY of Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN."
1. Effective the first day of April, 1994 the EL Plus 93 (Form 1019.1-94)
and VEL 93 (Form 1018.1-94) plans formally written by SMA Life Assurance Company
in the state of New York and reinsured pursuant to the Agreement shall now be
written by the REINSURED.
2. The REINSURED'S plans to be reinsured under the Agreement on and after
the first day of April, 1994 shall be those specified in the Appendix I,
attached hereto.
3. The provisions of this amendment shall be subject to all the terms and
conditions of the Agreement which do not conflict with the terms hereof.
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Signed at Worcester, MA
By /s/ Xxxxxx X. Xxxxx, Xx. By /s/
------------------------ ---------------------------
Title AVP & Actuary Title VP & Actuary
------------------------ ---------------------------
Date September 12, 1994 Date 9/12/94
------------------------ ---------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Signed at Fort Xxxxx, Indiana
By /s/ By /s/
------------------------ ---------------------------
Second Vice President Assistant Secretary
Date 9/19/94 Date 9/16/94
------------------------ ---------------------------
1
930536/338/H10N6809
Agreement No. 11/Revision No. 22
APPENDIX I
Insurance Subject to Reinsurance under this Agreement
The REINSURED'S entire excess of its issues of the following plans bearing
application dates in the range shown below to insureds having surnames beginning
with the letters of the alphabet as shown below.
A. Automatic Reinsurance
(1) Ten percent of the reinsurance the REINSURED cedes automatically of the
insurance specified below shall be ceded under this agreement.
DATES LETTERS
PLAN FROM THROUGH FROM THROUGH
---- ---- ------- ---- -------
EL Plus 93 (Form 1019.1-94)
(A Universal Life Plan) 04-01-94 -- A Z
VEL 93 (Form 1018.1-94
(A Universal Life Plan) 04-01-94 -- A Z
(2) The percentage as indicated below of the reinsurance the REINSURED
accepts from SMA Life Assurance Company of Dover, Delaware, of the
insurance specified below shall be ceded under this agreement.
DATES LETTERS
PLAN PERCENTAGES FROM THROUGH FROM THROUGH
---- ----------- ---- ------- ---- -------
Flexible Premium Adjustable
Life (Exceptional Life I) (Form
1012-83) 33 1/3% 08-01-83 06-30-86 A Z
Flexible Premium Adjustable Life
(Exceptional Retirement Life I)(Form
1016-84) 33 1/3% 05-14-84 06-30-86 A Z
Flexible Premium Other Insured Rider 33 1/3% 09-01-84 12-31-92 A Z
Flexible Premium Adjustable Life
(Exceptional Life II) (Form 1012-86) 33 1/3% 07-01-86 12-31-92 A Z
2
DATES LETTERS
PLAN PERCENTAGES FROM THROUGH FROM THROUGH
---- ----------- ---- ------- ---- -------
Retirement Series Flexible Premium
Adjustable Life (Exception Retirement
Life II) (Form 1016-86) 33 1/3% 07-01-86 12-31-92 A Z
Flexible Premium Variable Life (VEL
87)(Form 1018-87) 33 1/3 10-01-87 12-31-92 A Z
Exceptional Advantage (First to Die
Universal Life) (Form 1021-90) 33 1/3 12-01-90 12-31-92 A Z
New VEL 91 Variable Universal Life
(Form 1018-91) 33 1/3 10-01-91 12-31-92 A Z
Flexible Premium Other Insured Rider 10 01-01-93 -- A Z
Flexible Premium Adjustable Life
(Exceptional Life II) (Form 1012-86) 10 01-01-93 -- A Z
Retirement Series Flexible Premium
Adjustable Life (Exception Retirement
Life II) (Form 1016-86) 10 01-01-93 -- A Z
Flexible Premium Variable Life (Form
1018-87) 10 01-01-93 -- A Z
Exceptional Life Plus 10 01-01-93 -- A Z
Exceptional Advantage (First to Die
Universal Life) (Form 1021-90) 10 01-01-93 -- A Z
New VEL 91 Variable Universal Life
(Form 1018-91) 10 01-01-93 -- A Z
3
DATES LETTERS
PLAN PERCENTAGES FROM THROUGH FROM THROUGH
---- ----------- ---- ------- ---- -------
EL Plus 93 (Form 1019-93) (A Universal
Life Plan) 10 07-01-93 -- A Z
VEL 93 (From 1018-93) (A Universal
Life Plan) 10 07-01-93 -- A Z
B. Facultative Reinsurance
One hundred percent of the reinsurance the REINSURED cedes facultatively of
the insurance specified above to insured having surnames beginning with the
letters A through Z shall be ceded under this agreement provided the
REINSURED has accepted the LINCOLN'S offer to reinsure.
C. Continuations
Continuations to the insurance specified above shall be ceded under this
agreement provided the original policy was reinsured with the LINCOLN under
this or another agreement. The percentage of reinsurance ceded to LINCOLN
shall equal the percentage of the original policy ceded to LINCOLN.
4
AMENDMENT
to the Risk Premium Reinsurance Agreement (the "Agreement")
effective August 1, 1983, between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA of Worcester, Massachusetts,
hereinafter referred to as the "REINSURED",
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY of Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN."
1. On and after the first day of December, 1990, reinsurance of the
REINSURED'S Exceptional Advantage (First to Die Universal Life) (Form 1021-90)
plan ceded under the Agreement shall be extended to included Survivorship
Benefit reinsurance.
2. On and after the first day of December, 1990, for reinsurance of the
REINSURED'S Exceptional Advantage (First to Die Universal Life) (Form 1021-90)
plan under the Agreement, the REINSURED shall maintain its full retention on
each life insured under the policy.
3. Schedule A of Revision No. 19, effective January 1, 1993, under the
Agreement shall be replaced with the Schedule A, attached hereto.
4. On and after the first day of December, 1990, all reinsurance of the
following policies shall be reduced to the excess, if any, over the REINSURED'S
limit of retention.
INSURED NAME REINSURANCE NUMBER ISSUE DATE FACE AMOUNT
------------ ------------------ ---------- -----------
Xxxxxxx, Xxxxx XAD0012 04-29-92 $ 83,333
Xxxxxxxxx, Xxxxxx XXX0000 05-29-92 250,000
Xxxxx, Xxxx XAD0010 03-15-92 33,333
Xxxxxxx, Xxxxxxx XAD0015 10-01-92 350,000
Xxxxxxxxxx, Xxxxx XAD0003 12-25-92 183,333
Xxxxxx, Xxxxxxx XAD0007 01-10-92 391,667
Xxxxxxxxxx, Xxxxxxxx XAD0008 01-24-92 283,333
5. On and after the first day of December, 1990, for joint life policies of
the REINSURED'S Exceptional Advantage (First to Die Universal Life) plan, the
annual gross premium rate shall equal the quantity (A+B); where A is equal to
the applicable annual gross premium rate as described in Schedule D, Part II, of
the Agreement for the older insured and B is equal to the applicable annual
gross premium rate as described in Schedule D, Part II, of the Agreement for the
younger insured.
1
930933/0338/H10N7JG0
Agreement No. 11/Revision No. 23
6. The provisions of this amendment shall be subject to all the terms and
conditions of the Agreement which do not conflict with the terms hereof.
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Signed at Worcester, MA
By /s/ Xxxxxx X. Xxxxx, Xx. By /s/
------------------------ ---------------------------
Title AVP & Actuary Title VP & Actuary
------------------------ ---------------------------
Date September 12, 1994 Date 9/12/9
------------------------ ---------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Signed at Fort Xxxxx, Indiana
By /s/ By /s/
------------------------ ---------------------------
Second Vice President Assistant Secretary
Date 9/19/94 Date 9/16/94
------------------------ ---------------------------
2
SCHEDULE A
(Effective January 1, 1993)
Retention Limits of the REINSURED
LIFE
STANDARD RISKS,
SPECIAL CLASSES SPECIAL CLASSES J, L,
A THROUGH H, AND & P, AND
FLAT EXTRAS OF FLAT EXTRAS OF
AGES $0.00 - $20.00 $20.01 AND OVER
---- -------------- ---------------
0 $ 500,000 $ 250,000
1-60 2,000,000 1,000,000
61-70 1,000,000 500,000
71-80 500,000 250,000
Notes: (1) The above maximum limits are also the maximums on any one life
for all plans and riders combined.
(2) The minimum size reinsurance case will be $50,001.
(3) For the Exceptional Advantage (First to Die Universal Life)
(Form 1021-90) plan, the REINSURED shall maintain its full
retention on each insured.
AVIATION
Any situation involving aviation shall use a $500,000 retention.
WAIVER OF PREMIUM DISABILITY
Fully retained
ACCIDENTAL DEATH BENEFITS
Fully retained
3
AMENDMENT
to the Risk Premium Reinsurance Agreement (the "Agreement")
effective August 1, 1983, between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA of Worcester, Massachusetts,
hereinafter referred to as the "REINSURED",
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY of Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN."
1. The REINSURED'S plans to be reinsured under the Agreement on and
after the first day of May 1995, shall be those specified in the Appendix I,
attached hereto.
2. The premium rates as described in Schedule D, Part II, of the Agreement
shall apply to reinsurance of the REINSURED'S Select Life (Form 1027-95) plan
ceded under the Agreement on and after the first day of May, 1995.
3. The provisions of this amendment shall be subject to all the terms and
conditions of the Agreement which do not conflict the terms hereof.
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Signed at Worcester, MA
By /s/ Xxxxxx X. Xxxxx, Xx. By /s/
------------------------ ---------------------------
Title AVP & Actuary Title VP & Actuary
------------------------ ---------------------------
Date May 16, 1995 Date May 16, 1995
------------------------ ---------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Signed at Fort Xxxxx, Indiana
By /s/ By /s/
------------------------ ---------------------------
Second Vice President Assistant Secretary
Date May 26, 1995 Date 5-25-95
------------------------ ---------------------------
1
950494/338/H10NCVHG
Agreement No. 11/Revision No. 24
APPENDIX I
Insurance Subject to Reinsurance under this Agreement
The REINSURED'S entire excess of its issues of the following plans bearing
application dates in the range shown below to insureds having surnames beginning
with the letters of the alphabet as shown below.
A. Automatic Reinsurance
(1) Ten percent of the reinsurance the REINSURED cedes automatically of the
insurance specified below shall be ceded under this agreement.
DATES LETTERS
PLAN FROM THROUGH FROM THROUGH
---- ---- ------- ---- -------
EL Plus 93 (Form 1019.1-94)
(A Universal Life Plan) 04-01-94 -- A Z
VEL 93 (Form 1018.1-94)
(A Universal Life Plan) 04-01-94 -- A Z
Select Life (Form 1027-95) (A
Universal Life Plan) 05-01-95 -- A Z
(2) The percentage as indicated below of the reinsurance the REINSURED
accepts from SMA Life Assurance Company of Dover, Delaware, of the
insurance specified below shall be ceded under this agreement.
DATES LETTERS
PLAN PERCENTAGES FROM THROUGH FROM THROUGH
---- ----------- ---- ------- ---- -------
Flexible Premium Adjustable
Life (Exceptional Life I) (Form
1012-83) 33 1/3% 08-01-83 06-30-86 A Z
Flexible Premium Adjustable Life
(Exceptional Retirement Life I)(Form
1016-84) 33 1/3 05-14-84 06-30-86 A Z
Flexible Premium Other Insured Rider 33 1/3 09-01-84 12-31-92 A Z
Flexible Premium Adjustable Life
(Exceptional Life II) (Form 1012-86) 33 1/3 07-01-86 12-31-92 A Z
2
DATES LETTERS
PLAN PERCENTAGES FROM THROUGH FROM THROUGH
---- ----------- ---- ------- ---- -------
Retirement Series Flexible Premium
Adjustable Life (Exception Retirement
Life II) (Form 1016-86) 33 1/3 07-01-86 12-31-92 A Z
Flexible Premium Variable Life
(VEL 87)(Form 1018-87) 33 1/3 10-01-87 12-31-92 A Z
Exceptional Life Plus 33 1/3 05-15-89 12-31-92 A Z
Exceptional Advantage (First to Die
Universal Life) (Form 1021-90) 33 1/3 12-01-90 12-31-92 A Z
New VEL 91 Variable Universal Life
(Form 1018-91) 33 1/3 10-01-91 12-31-92 A Z
Flexible Premium Other Insured Rider 10 01-01-93 -- A Z
Flexible Premium Adjustable Life
(Exceptional Life II) (Form 1012-86) 10 01-01-93 -- A Z
Retirement Series Flexible Premium
Adjustable Life (Exception Retirement
Life II) (Form 1016-86) 10 01-01-93 -- A Z
Flexible Premium Variable Life
(Form 1018-87) 10 01-01-93 -- A Z
Exceptional Life Plus 10 01-01-93 -- A Z
Exceptional Advantage (First to Die
Universal Life) (Form 1021-90) 10 01-01-93 -- A Z
New VEL 91 Variable Universal Life
(Form 1018-91) 10 01-01-93 -- A Z
EL Plus 93 (Form 1019-93)
(A Universal Life Plan) 10 07-01-93 -- A Z
3
PLAN PERCENTAGES FROM THROUGH FROM THROUGH
---- ----------- ---- ------- ---- -------
VEL 93 (From 1018-93)
(A Universal Life Plan) 10 07-01-93 -- A Z
Select Life (Form 1027-95 10 05-01-95 -- A Z
B. Facultative Reinsurance
One hundred percent of the reinsurance the REINSURED cedes
facultatively of the insurance specified above to insured having
surnames beginning with the letters A through Z shall be ceded under
this agreement provided the REINSURED has accepted the LINCOLN'S offer
to reinsure.
C. Continuations
Continuations to the insurance specified above shall be ceded under
this agreement provided the original policy was reinsured with the
LINCOLN under this or another agreement. The percentage of reinsurance
ceded to LINCOLN shall equal the percentage of the original policy
ceded to LINCOLN.
4
AMENDMENT
to the Risk Premium Reinsurance Agreement (the "Agreement")
effective August 1, 1983, between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA of Worcester, Massachusetts,
hereinafter referred to as the "REINSURED",
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY of Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN."
1. Effective the First day of July, 1995, for retention determination
purposes, in conjunction with any subsequent new issues and any exercise of
recapture privileges pursuant to the "INCREASE IN LIMIT OF RETENTION" article
under the Agreement, all term plans issued by the REINSURED shall not be
considered.
2. The provisions of this amendment shall be subject to all the terms and
conditions of the Agreement which do not conflict with the terms hereof.
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Signed at Worcester, MA
By /s/ Xxxxxx X. Xxxxx, Xx. By /s/
------------------------ ---------------------------
Title AVP & Actuary Title VP & Actuary
------------------------ ---------------------------
Date September 25, 1995 Date 9/25/95
------------------------ ---------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Signed at Fort Xxxxx, Indiana
By /s/ By /s/
------------------------ ---------------------------
Second Vice President Assistant Secretary
Date October 3, 1995 Date 10-2-95
------------------------ ---------------------------
950632/338/H10NE1HF
Agreement No. 11/Revision No. 25
NOTICE OF CHANGE
to the Reinsurance Agreements (the "Agreement") listed in the attached Exhibit I
between STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA of Worcester,
Massachusetts, ("REINSURED" or "REINSURER"), hereinafter referred to
collectively as the REINSURED and THE LINCOLN NATIONAL LIFE INSURANCE COMPANY of
Fort Xxxxx, Indiana, ("LINCOLN" or REINSURED"), hereinafter referred to
collectively as the "LINCOLN."
WHEREAS, the REINSURED has notified LINCOLN that effective the eleventh day
of October, 1995, it changed its corporate name.
NOW THEREFORE, the parties acknowledge the following:
1. Effective the eleventh day of October, 1995, the REINSURED under the
Agreement shall refer to First Allmerica Financial Life Insurance Company of
Worcester, Massachusetts.
2. The provisions of this Notice of Change shall be subject to all the
terms and conditions of the Agreement which do not conflict with the terms
hereof.
A copy of this Notice of Change was sent to the REINSURED.
THE LINCOLN NATIONAL LIFE INSURANCE
COMPANY
Signed at Fort Xxxxx, Indiana
By /s/
----------------------------------
Second Vice President
Date February 29,1996
---------------------------------
Assistant Secretary
By /s/
---------------------------------
Date 2/29/96
---------------------------------
1
960326/338/H10NK7G0
See Exhibit I
EXHIBIT I
(Effective October 11, 1995)
AGREEMENT NUMBER/
REVISION NUMBER TYPE OF AGREEMENT AGREEMENT EFFECTIVE DATE
--------------- ----------------- ------------------------
5 / 14 Retrocession 03-01-77
11 / 26 Risk Premium Reinsurance 08-01-83
13 / 21 Retrocession 01-01-86
14 / 16 Risk Premium Reinsurance 01-01-87
15 / 13 Risk Premium Reinsurance 01-01-87
17 / 11 Risk Premium Reinsurance 05-01-89
18 / 9 Retrocession 01-01-91
19 / 3 Individual Health 04-01-94
2
960426/338/H10NK7GO
AMENDMENT
to the Risk Premium Reinsurance Agreement (the "Agreement")
effective August 1, 1983, between
FIRST ALLMERICA FINANCIAL LIFE INSURANCE COMPANY
of
Worcester, Massachusetts,
hereinafter referred to as the "REINSURED",
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
of
Fort Xxxxx, Indiana,
hereinafter referred to as the "LINCOLN."
1. The REINSURED'S plans to be reinsured under the Agreement on and after
the first day of February, 1997, shall be those specified in the Appendix I,
attached hereto.
2. On and after the first day of February, 1997, for reinsurance of the
REINSURED'S Single Premium Variable Life (Form 1030-96) plan, paragraphs 3 and 6
of the "REINSURANCE COVERAGE" article of the Agreement shall be replaced with
the following:
"3. In the first policy year, the amount at risk shall be defined
as the amount of insurance reinsured under this Agreement less the
single premium paid by the insured. In all subsequent policy
years, the amount at risk shall be the amount of insurance
reinsured under this Agreement less one-third of the accumulated
policy year for automatic reinsurance and less all of the
accumulated policy value for facultative reinsurance and
exchanges.
"6. Accidental Death reinsurance in amounts less than $10,000 or
Life reinsurance in amounts less than the amount at risk upon
$50,001 of insurance shall not be placed in effect under this
Agreement. If Accidental Death reinsurance is subsequently reduced
below $10,000, ___ such reinsurance shall terminate."
3. The provisions of this amendment shall be subject to all the terms and
conditions of the Agreement which do not conflict with the terms hereof.
1
970543df/338/H10NVYEW
Agreement No. 11/Revision No. 27
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
FIRST ALLMERICA FINANCIAL LIFE INSURANCE COMPANY
Signed at Worcester, MA
By /s/ Xxxxxx X. Xxxxx, Xx. By /s/
------------------------ ---------------------------
Title AVP & Actuary Title VP & Actuary
------------------------ ---------------------------
Date July 22, 1997 Date July 22, 1997
------------------------ ---------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Signed at Fort Xxxxx, Indiana
By /s/ By /s/
------------------------ ---------------------------
Second Vice President Assistant Secretary
Date July 14, 1997 Date July 14, 1997
------------------------ ---------------------------
2
APPENDIX I
Insurance Subject to Reinsurance under this Agreement
The REINSURED'S entire excess of its issues of the following plans bearing
application dates in the range shown below to insureds having surnames beginning
with the letters of the alphabet as shown below.
A. Automatic Reinsurance
(1) Ten percent of the reinsurance the REINSURED cedes automatically of
the insurance specified below shall be ceded under this agreement.
DATES LETTERS
PLAN FROM THROUGH FROM THROUGH
---- ---- ------- ---- -------
EL Plus 93 (Form 1019.1-94)
(A Universal Life Plan) 04-01-94 -- A Z
VEL 93 (Form 1018.1-94)
(A Universal Life Plan) 04-01-94 -- A Z
Select Life (Form 1027-95)
(A Universal Life Plan) 05-01-95 -- A Z
Single Premium Variable Life
(Form 1030-96) 02-01-97 -- A Z
(2) The percentage as indicated below of the reinsurance the REINSURED
accepts from SMA Life Assurance Company of Dover, Delaware, of the
insurance specified below shall be ceded under this agreement.
DATES LETTERS
PLAN PERCENTAGES FROM THROUGH FROM THROUGH
---- ----------- ---- ------- ---- -------
Flexible Premium Adjustable
Life (Exceptional Life I)
(Form 1012-83) 33 1/3% 08-01-83 06-30-86 A Z
Flexible Premium Adjustable Life
(Exceptional Retirement Life I)
(Form 1016-84) 33 1/3 05-14-84 06-30-86 A Z
Flexible Premium Other Insured Rider 33 1/3 09-01-84 12-31-92 A Z
3
DATES LETTERS
PLAN PERCENTAGES FROM THROUGH FROM THROUGH
---- ----------- ---- ------- ---- -------
Flexible Premium Adjustable Life
(Exceptional Life II) (Form 1012-86) 33 1/3 07-01-86 12-31-92 A Z
Retirement Series Flexible Premium
Adjustable Life (Exception Retirement
Life II) (Form 1016-86) 33 1/3 07-01-86 12-31-92 A Z
Exceptional Life Plus 33 1/3 05-15-89 12-31-92 A Z
Exceptional Advantage (First to Die
Universal Life) (Form 1021-90) 33 1/3 12-01-90 12-31-92 A Z
New VEL 91 Variable Universal Life
(Form 1018-91) 33 1/3 10-01-91 12-31-92 A Z
Flexible Premium Other Insured Rider 10 01-01-93 -- A Z
Flexible Premium Adjustable Life
(Exceptional Life II) (Form 1012-86) 10 01-01-93 -- A Z
Retirement Series Flexible Premium
Adjustable Life (Exception Retirement
Life II) (Form 1016-86) 10 01-01-93 -- A Z
Flexible Premium Variable Life (Form
1018-87) 10 01-01-93 -- A Z
Exceptional Life Plus 10 01-01-93 -- A Z
Exceptional Advantage (First to Die
Universal Life) (Form 1021-90) 10 01-01-93 -- A Z
New VEL 91 Variable Universal Life
(Form 1018-91) 10 01-01-93 -- A Z
4
DATES LETTERS
PLAN PERCENTAGES FROM THROUGH FROM THROUGH
---- ----------- ---- ------- ---- -------
EL Plus 93 (Form 1019-93) (A Universal
Life Plan) 10 07-01-93 -- A Z
VEL 93 (From 1018-93) (A Universal
Life Plan) 10 07-01-93 -- A Z
Select Life (Form 1027-95)
(A Universal Life Plan) 10 05-01-95 -- A Z
B. Facultative Reinsurance
One hundred percent of the reinsurance the REINSURED cedes facultatively of
the insurance specified above to insured having surnames beginning with the
letters A through Z shall be ceded under this agreement provided the
REINSURED has accepted the LINCOLN'S offer to reinsure.
C. Continuations
Continuations to the insurance specified above shall be ceded under this
agreement provided the original policy was reinsured with the LINCOLN under
this or another agreement. The percentage of reinsurance ceded to LINCOLN
shall equal the percentage of the original policy ceded to LINCOLN.
5
