EXHIBIT 7
Form of Reinsurance Agreement
VARIABLE ANNUITY REINSURANCE AGREEMENT
This Agreement
is by and between
AMERITAS VARIABLE LIFE INSURANCE COMPANY
("CEDING COMPANY")
Lincoln, Nebraska
and
ACE TEMPEST LIFE REINSURANCE LTD.
("REINSURER")
Xxxxxxxx, Bermuda
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TABLE OF CONTENTS
ARTICLE PAGE
------------------------
Access to Records IX 10
Arbitration XIII 13
Automatic Provisions IV 7
Confidentiality IX 10
Currency XI 12
Definitions I 3
Effective Date, Term, and Termination III 6
Insolvency XII 12
Litigation VIII 10
Miscellaneous XV 14
Governing Law XVI 14
Notices XVII 15
Offset XIV 14
Parties to the Agreement II 5
Premium Accounting V 9
Reinsurance Claim Settlement VI 9
Reserves VII 10
Unintentional Errors, Misunderstandings,
or Omissions X 12
SCHEDULES
A-1 Description of Guaranteed Minimum Death Benefit (GMDB) for CONTRACT TYPES
listed in Schedule B-1
B-1 CONTRACT TYPES Reinsured Under this Agreement
B-2 Investment Funds Under CONTRACT TYPES Reinsured Under this Reinsurance
Agreement
C-1 Limits and Rules of CEDING COMPANY
C-2 Limits and Rules of REINSURER
D REINSURANCE PREMIUM RATE
E REINSURER'S Quota Share
F Monthly Reporting Format and Data Requirements
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ARTICLE I - DEFINITIONS
A. DURATION OF AGREEMENT:
EFFECTIVE DATE means January 1, 2003.
BUSINESS DAY means any day that securities are traded on the New York Stock
Exchange. MONTHLY VALUATION DATE means the last BUSINESS DAY of any month.
TERMINATION DATE means the date the last ACTIVE CONTRACT is terminated due to
death, lapse, surrender, the annuitant reaching the maximum annuitization age,
annuitization or some other valid contingency.
B. CONTRACT DEFINITIONS:
VARIABLE ANNUITY CONTRACT means a written annuity contract issued by the CEDING
COMPANY to a contract owner under which CEDING COMPANY agrees to provide
specified benefits in accordance with specified terms and conditions.
ACTIVE CONTRACT means a VARIABLE ANNUITY CONTRACT, other than an EXCLUDED
CONTRACT, which is in effect, which has not been terminated due to death, lapse,
surrender, the annuitant's reaching the maximum annuitization age, or some other
valid contingency, and which has not been annuitized.
EXCLUDED CONTRACT means any VARIABLE ANNUITY CONTRACT that has
elected either the Value+ Option and/or an Estate Protection Benefit Rider or
Expanded Estate Protection Benefit Rider identified in Schedule B-1 provided,
however, that any EXCLUDED CONTRACT shall be treated as such only on and after
the date as of which it satisfies any of the conditions identified herein.
RETAIL ANNUITY PREMIUMS means contributions made in accordance with the
provisions of any VARIABLE ANNUITY CONTRACT by or on behalf of its owner,
whether referred to as purchase payments, premiums, deposits or otherwise, in
amounts not in excess of the limit provided in Schedule C-1.
CONTRACT TYPE means any one of the VARIABLE ANNUITY CONTRACT forms specified in
Schedule B-1.
GMDB TYPE means any one of the Guaranteed Minimum Death Benefits specified in
the VARIABLE ANNUITY CONTRACTS and described in Schedule A-1.
C. REINSURANCE PREMIUM DEFINITIONS:
ACCOUNT VALUE means, for each VARIABLE ANNUITY CONTRACT, the sum of the invested
assets in the investment funds shown in Schedule B-2.
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REINSURED ACCOUNT VALUE means the ACCOUNT VALUE multiplied by the REINSURER'S
Quota Share, as shown in Schedule E.
REINSURANCE PREMIUM RATE means the premium rate provided in Schedule D, for each
CONTRACT TYPE.
MONTHLY REINSURANCE PREMIUM RATE means the REINSURANCE PREMIUM RATE divided by
12.
MONTHLY REINSURANCE PREMIUM means the sum, for all ACTIVE CONTRACTS reinsured
under this Agreement, of the product of (i) the MONTHLY REINSURANCE PREMIUM RATE
and (ii) the average of (a) the REINSURED ACCOUNT VALUE as of the current
month's MONTHLY VALUATION DATE and (b) the REINSURED ACCOUNT VALUE as of the
previous month's MONTHLY VALUATION DATE. If this calculation produces a figure
smaller than the MINIMUM MONTHLY REINSURANCE PREMIUM, then the MONTHLY
REINSURANCE PREMIUM shall be the MINIMUM MONTHLY REINSURANCE PREMIUM.
MINIMUM MONTHLY REINSURANCE PREMIUM means $1,000.
REINSURANCE PREMIUM DUE DATE means the MONTHLY VALUATION DATE.
REMITTANCE DATE means the MONTHLY VALUATION DATE following the REINSURANCE
PREMIUM DUE DATE.
D. REINSURANCE CLAIM DEFINITIONS:
GMDB AMOUNT means, in accordance with each VARIABLE ANNUITY CONTRACT, the CEDING
COMPANY'S contractually determined minimum amount payable on the death of the
INSURED.
INSURED means the (a) annuitant in the case of Overture Annuity III-Plus and
Overture Acclaim, and (b) owner in the case of Overture Medley.
ROP GMDB AMOUNT means, in accordance with each VARIABLE ANNUITY CONTRACT, the
CEDING COMPANY'S contractually determined minimum return of premium amount
payable on the death of the INSURED.
REINSURED GMDB AMOUNT means, for each ACTIVE CONTRACT, the product of the GMDB
AMOUNT and the REINSURER'S Quota Share, determined in accordance with Schedule
E.
REINSURED ROP GMDB AMOUNT means, for each ACTIVE CONTRACT, the product of the
ROP GMDB AMOUNT and the REINSURER'S Quota Share, determined in accordance with
Schedule E.
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GMDB CLAIM means the excess of (i) the REINSURED GMDB AMOUNT over (ii) the
greater of (a) the REINSURED ROP GMDB AMOUNT and (b) the REINSURED ACCOUNT
VALUE, if a positive value, as of the date that CEDING COMPANY calculates the
GMDB AMOUNT under the terms of the applicable CONTRACT TYPE.
REIMBURSEMENT DATE means 30 days after the later of the REMITTANCE DATE
or the date that REINSURER receives a request for claim reimbursement from the
CEDING COMPANY.
ANNUAL AGGREGATE CLAIM LIMIT means the limit, applicable for each calendar year,
upon GMDB CLAIMS under this Agreement, calculated by multiplying (a) 200 basis
points (0.0200) by (b) the ANNUAL AVERAGE REINSURED ACCOUNT VALUE.
ANNUAL AVERAGE REINSURED ACCOUNT VALUE means the sum of the MONTHLY AVERAGE
REINSURED ACCOUNT VALUES divided by the number of months that reinsurance is
effective under this Agreement during any calendar year.
MONTHLY AVERAGE REINSURED ACCOUNT VALUE means, for any calendar month, the
average of the REINSURED ACCOUNT VALUE as of the previous calendar month's
MONTHLY VALUATION DATE and the REINSURED ACCOUNT VALUE as of the current month's
MONTHLY VALUATION DATE.
PER LIFE CLAIM LIMIT means the maximum reinsurance claim liability (the GMDB
CLAIM) on any single life, which shall be equal to $ 1 million multiplied by the
REINSURER'S Quota Share, determined in accordance with Schedule E.
ARTICLE II - PARTIES TO THE AGREEMENT
This Agreement shall be binding upon and shall inure solely to the benefit of
the CEDING COMPANY and the REINSURER, and their respective successors and
permitted assignees. Nothing in this Agreement in any manner is intended to
create or shall create any obligations as to or rights against the REINSURER or
establish any legal relationship between the REINSURER and any third party or
any persons not party to this Agreement, including without limitation,
annuitants, contract owners, certificate owners, beneficiaries, applicants or
assignees under any VARIABLE ANNUITY CONTRACT covered by this Agreement, except
as provided in the Insolvency Article.
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ARTICLE III - EFFECTIVE DATE, BUSINESS COVERED, TERM AND TERMINATION
A. This Agreement is effective as of 12:01 a.m. Eastern Standard Time, on the
EFFECTIVE DATE.
B. Business covered by this Agreement includes VARIABLE ANNUITY CONTRACTS
issued by the CEDING COMPANY that:
(i) are among the CONTRACT TYPES identified by form number (and all state
variations thereof) and which satisfy all the specifications contained
in Schedule B-1;
(ii) have assets invested only to the investment funds listed in Schedule
B-2;
(iii) are issued on and after the EFFECTIVE DATE but prior to the date
determined in Section C (i) or (ii) below;
(iv) are issued in accordance with the limits and rules described in
Schedule C-1;
(v) are in compliance with all of the other teens and provisions of this
Agreement and Schedules; and
(vi) are ACTIVE CONTRACTS.
C. Business covered by this Agreement does not include new VARIABLE ANNUITY
CONTRACTS issued by the CEDING COMPANY on and after the earlier of (i)
11:59 p.m. Eastern Standard Time, on December 31, 2004 or (ii) the date
that cumulative RETAIL ANNUITY PREMIUMS paid on ACTIVE CONTRACTS exceed the
limit provided in schedule C-2.
D. CEDING COMPANY shall have the option of terminating this Agreement for new
business, existing business, or both, immediately upon an order appointing
a receiver, conservator or trustee for management of REINSURER is entered
or a proceeding is commenced for rehabilitation, liquidation, supervision
or conservation of REINSURER. CEDING COMPANY may recapture immediately all
ceded benefits upon written notice to REINSURER, its receiver, conservator,
or trustee, thereby releasing REINSURER, its receiver, conservator or
trustee from all liability with respect to business ceded pursuant to this
Agreement. REINSURER agrees to notify CEDING COMPANY promptly upon receipt
of an order appointing a receiver, conservator or trustee for management of
REINSURER. For any business for which the CEDING COMPANY does not terminate
the effect of this Agreement as permitted to do so pursuant to this
paragraph, the liability of REINSURER shall continue with respect to such
business.
E. REINSURER shall have the option of terminating this Agreement for new
business, existing business or both upon providing 60 days written notice
to CEDING COMPANY (in which REINSURER will identify whether termination
applies to new business, existing business or both) upon the occurrence of
any of the following:
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1. CEDING COMPANY fails to provide any timely submission of data in
accordance with Schedule F. If, during the 60 days following this
notification, REINSURER receives all data submissions in arrears, the
notice of termination shall be deemed withdrawn.
2. CEDING COMPANY fails to pay MONTHLY REINSURANCE PREMIUM on or before
the REMITTANCE DATE. If REINSURER receives all MONTHLY REINSURANCE
PREMIUM in arrears, including interest calculated in accordance with
paragraph F of this Article, within the 60 day notice period, the
notice of termination shall be deemed withdrawn.
Upon termination in accordance with this paragraph, subject to the terms
and conditions of this Agreement, as of the close of the last BUSINESS DAY
of this 60 day notice period, REINSURER' S liability for all business
terminated in accordance with such notice will terminate.
F. Notwithstanding termination of reinsurance as provided herein, CEDING
COMPANY shall continue to be liable to REINSURER for all unpaid MONTHLY
REINSURANCE PREMIUM earned by REINSURER under this Agreement, and REINSURER
shall continue to be liable to CEDING COMPANY for all unpaid GMDB CLAIMS to
the extent due under this Agreement as of the effective date of
termination. Any such net amounts due from either party shall be subject to
an annual interest charge equal to the 3 month LIBOR rate as of the
REMITTANCE DATE as published in the Wall Street Journal, plus 1.00%,
applied daily as rate/365. Interest shall be assessed from the REMITTANCE
DATE for MONTHLY REINSURANCE PREMIUM or the REIMBURSEMENT DATE for GMDB
CLAIMS until the date paid.
ARTICLE IV - AUTOMATIC PROVISIONS
A. On or after the EFFECTIVE DATE of this Agreement, CEDING COMPANY shall
automatically cede and REINSURER shall automatically accept a Quota Share
percentage, as provided in Schedule E, with respect to the CEDING COMPANY'S
liability for the GMDB CLAIMS for each ACTIVE CONTRACT reinsured under this
Agreement as provided in this Article.
B. (1) This Agreement covers only the liability for GMDB CLAIMS paid under
VARIABLE ANNUITY CONTRACT forms or benefit rider forms that were reviewed
and approved by REINSURER prior to their issuance. Approved Benefit rider
forms and contract forms, as supplemented by additional materials, are
listed on Schedule B-1. REINSURER shall have no liability with respect to
any new or revised contract form or benefit rider form not so approved
unless and until REINSURER has reviewed and expressly approved such form in
writing. CEDING COMPANY shall provide prior written notice to REINSURER of
a request for such approval together with a copy of the new or revised
contract form or rider form, and a revised Schedule B-1. REINSURER will
approve or disapprove any new or
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revised contract forms or benefit rider forms within 30 days of the date it
receives notification and copies thereof; provided, however, that such
forms are deemed disapproved unless the REINSURER'S written approval is
submitted within such time period. Notice of disapproval will not affect
VARIABLE ANNUITY CONTRACTS issued under Schedule B-1, including amendments
to Schedule B-1 that were previously approved by REINSURER.
(2) Moreover, REINSURER shall have no liability with respect to any
contract form or benefit rider form if funds have been deleted from the
form as approved by the REINSURER. REINSURER shall be liable with respect
to such form only after REINSURER has reviewed and expressly approved any
such fund deletion in writing. CEDING COMPANY shall provide prior written
notice to REINSURER of a request for such approval together with a copy of
the new or revised contract form or rider form, and a revised Schedule B-1.
REINSURER will approve or disapprove any new or revised contract forms or
benefit rider forms within 30 days of the date it receives notification and
copies thereof; provided, however, that such forms are deemed disapproved
unless the REINSURER'S written approval is submitted within such time
period. Notice of disapproval will not affect VARIABLE ANNUITY CONTRACTS
issued under Schedule B-1, including amendments to Schedule B-1 that were
previously approved by REINSURER.
C. This Agreement covers only the liability for GMDB CLAIMS paid under
VARIABLE ANNUITY CONTRACTS invested in investment funds listed on Schedule
B-2. REINSURER shall have no liability with respect to any new or revised
investment fund not so approved unless REINSURER has reviewed and expressly
approved such fund in writing. CEDING COMPANY shall provide prior written
notice to REINSURER of a request for such approval together with a copy of
the new or revised investment fund, and a revised Schedule B-2. REINSURER
will approve or disapprove any new or revised investment funds within 30
days of the date it receives notification and copies thereof; , provided,
however, that such funds are deemed disapproved unless the REINSURER'S
written approval is submitted within such time period. Notice of
disapproval will not affect VARIABLE ANNUITY CONTRACTS issued under
Schedule B-1, including amendments to Schedule B-2 that were previously
approved by REINSURER.
D. Notwithstanding Paragraphs B and C above, CEDING COMPANY must notify
REINSURER in advance of any upcoming changes to the policy form, contract,
or prospectus which may affect VARIABLE ANNUITY CONTRACTS reinsured under
this Agreement. REINSURER will determine whether such changes require a
modification to this Agreement within 30 days of the date it receives
notification. REINSURER shall have no liability with respect to any
proposed change to the policy form, contract, or prospectus which may
affect VARIABLE ANNUITY CONTRACTS reinsured under this Agreement unless and
until REINSURER has agreed in writing to be bound with respect to such
change and, where REINSURER concludes that an Amendment to this Agreement
is required, such Amendment is effected by the parties hereto.
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E. The issue age limits and the total RETAIL ANNUITY PREMIUMS per life must
fall within the automatic limits as shown in Schedule C-1, unless an
exception is permitted by mutual written agreement between the parties.
CEDING COMPANY shall provide prior written notice to REINSURER of any
changes in its published limits and rules identified on Schedule C-1, and
REINSURER shall have no liability with respect to revised limits and rules
unless and until REINSURER provides written notice to CEDING COMPANY that
such revised limits and rules are acceptable.
ARTICLE V - PREMIUM ACCOUNTING
A. On or before the REMITTANCE DATE, CEDING COMPANY shall forward to REINSURER
its statement of account and data requirements as set forth in Schedule F
together with its remittance of the MONTHLY REINSURANCE PREMIUM as shown
therein, as well as any premium adjustments from the prior period.
B. If the MONTHLY REINSURANCE PREMIUM is not paid by CEDING COMPANY on or
before the REMITTANCE DATE, interest calculated in accordance with Article
III, paragraph F will be assessed from the REMITTANCE DATE until the date
such unpaid MONTHLY REINSURANCE PREMIUM is paid in full to REINSURER.
C. If any MONTHLY REINSURANCE PREMIUM amounts due hereunder cannot be
determined by the REMITTANCE DATE, CEDING COMPANY shall have 30 days to
determine the appropriate MONTHLY REINSURANCE PREMIUM amount and remit such
amount to REINSURER with interest, from the REMITTANCE DATE to the date of
payment, calculated in accordance with Article Ill, paragraph F.
ARTICLE VI - REINSURANCE CLAIM SETTLEMENT
A. REINSURER shall at no time be responsible for any obligation of CEDING
COMPANY to any party under any VARIABLE ANNUITY CONTRACT issued by CEDING
COMPANY.
B. On or before the REMITTANCE DATE, CEDING COMPANY shall forward to
REINSURER its statement of account and data requirements as set forth in
Schedule F, together with its request for reimbursement for GMDB CLAIMS as
shown therein. If requested by REINSURER, CEDING COMPANY shall promptly
provide REINSURER with proof of claim, proof of claim payment and any
other claim documentation identified by REINSURER, in accordance with
Schedule F.
C. If GMDB CLAIMS are not paid by the REIMBURSEMENT DATE interest calculated
in accordance with Article III, paragraph F will be assessed from the
REIMBURSEMENT DATE and will continue until the GMDB CLAIMS are paid in
full.
D. Notwithstanding any other provision of this Agreement, the REINSURER'S
total liability under this Agreement shall not exceed (1) in connection
with any single life, the PER LIFE
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CLAIM LIMIT; and (2) for GMDB CLAIMS, the ANNUAL AGGREGATE CLAIM LIMIT.
ARTICLE VII - RESERVES
A. REINSURER will establish and hold a reserve in connection with the
reinsurance provided under this Agreement, which will satisfy the
requirements of the insurance regulatory requirements of the state of
domicile of the CEDING COMPANY (the "Domiciliary State"), as in effect on
the EFFECTIVE DATE.
B. Additional reserves requested by CEDING COMPANY may be established by
REINSURER and secured by a trust or a letter of credit. An additional
reinsurance premium will be required annually and will be equal to 100
basis points (0.0100) multiplied by the additional reserve amount
established.
C. With respect to the reserve so established, REINSURER will comply with the
provisions of insurance law of the Domiciliary State relating to
reinsurance credit for non-authorized reinsurers as in effect on the
EFFECTIVE DATE, including providing security to enable the CEDING COMPANY
to qualify for such reserve credit through the issuance of letters of
credit or otherwise, at the REINSURER'S expense.
ARTICLE VIII - LITIGATION
In the event of any legal action brought against CEDING COMPANY relating to any
VARIABLE ANNUITY CONTRACT that is reinsured in accordance with the terms and
conditions of this Agreement, CEDING COMPANY shall provide to the REINSURER
written notice thereof, including a copy of the complaint and/or all other
pleadings and correspondence relating to such legal action within 20 BUSINESS
DAYS after CEDING COMPANY'S receipt thereof.
ARTICLE IX - ACCESS TO RECORDS: CONFIDENTIALITY
A. The REINSURER, or its duly authorized representatives, shall have access at
any reasonable time during regular business hours, to all records of the
CEDING COMPANY, including the right to photocopy and retain copies of
documents that reasonably pertain in any way to this Agreement. Books and
records shall be maintained in accordance with prudent standards of
insurance company record keeping and must be retained for a period of at
least three (3) years after the final settlement date. Within one hundred
and fifty (150) days following the end of each calendar year, the CEDING
COMPANY and the REINSURER shall provide each other with copies of their
respective audited financial statements.
B. The CEDING COMPANY and the REINSURER may come into the possession or
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knowledge of Confidential Information of the other in fulfilling
obligations under this Agreement. Each party agrees to hold such
Confidential Information in the strictest confidence and to take all
reasonable steps to ensure that Confidential Information is not disclosed
in any form by any means by each of them or by any of their employees to
third parties of any kind, other than attorneys, accountants, reinsurance
intermediaries, consultants or retrocessionaires having an interest in such
information, except by advance written authorization by an officer of the
authorizing party; provided, however, that either party will be deemed to
have satisfied its obligations as to the Confidential Information by
protecting its confidentiality in the same manner that the party protects
its own proprietary or confidential information of like kind, which shall
be at least a reasonable manner.
Subject to the exclusion provided in Paragraph C, below, "Confidential
Information" means:
(1.) any information or knowledge about each party's products, processes,
services, finances, customers, research, computer programs, marketing and
business plans and/or claims management practices; and
(2.) any medical or other personal, individually identifiable information
about people or business entities with whom each party does business,
including customers, prospective customers, vendors, suppliers, individuals
covered by insurance plans, and each party's producers and employees; and
(3.) records provided pursuant to Paragraph A, above.
C. Notwithstanding the definition of "Confidential Information" provided in
Paragraph B, above, Confidential Information does not include information
that
(1.) is generally available to or known by the public; or
(2.) is disclosed pursuant to written authorization of an officer of the
disclosing party; or
(3.) is disclosed pursuant to operation of law (including without
limitation the lawful requirement of a governmental agency), provided (a)
the non-disclosing party is given reasonable prior notice to enable it to
seek a protective order, and (b) the disclosing party discloses only that
information which, in the reasonable judgment of its counsel, is required
to be disclosed; or
(4.) has been lawfully obtained or developed by either party (a)
independently or from any source other than the other party (provided that
such source is not bound by a duty of confidentiality to such other party),
and (b) not in violation of this Agreement.
D. If either the CEDING COMPANY or the REINSURER discloses Confidential
Information to interested parties such as, but not limited to, attorneys,
accountants, reinsurance intermediaries, consultants or retrocessionaires
having an interest in such information, such interested parties shall also
be bound by this Article's provisions on disclosing Confidential
Information. The CEDING COMPANY or the REINSURER must inform the interested
party of the provisions of this Article and agree to ensure that the
interested parties honor the provisions.
E. This Article expires 3 year after the TERMINATION DATE.
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ARTICLE X - UNINTENTIONAL ERRORS. MISUNDERSTANDINGS OR OMISSIONS
It is expressly understood and agreed that if failure to comply with any terms
of this Agreement is hereby shown to be the result of an unintentional error,
misunderstanding or omission, on the part of either CEDING COMPANY or REINSURER,
both CEDING COMPANY and REINSURER, will be restored to the position they would
have occupied, had no such error, misunderstanding or omission occurred, subject
always to the correction of the error, misunderstanding or omission.
ARTICLE XI - CURRENCY
All retentions and limits hereunder, and all monetary data elements as described
in Schedule F, are expressed in United States dollars and all premium and claim
payments shall be made in United States dollars.
ARTICLE XII - INSOLVENCY
A. In the event of insolvency of CEDING COMPANY, any net GMDB CLAIMS due
CEDING COMPANY, after offset for REINSURANCE PREMIUM due REINSURER as
described in Article XIV, will be payable directly by REINSURER to CEDING
COMPANY or to its liquidator, receiver, conservator or statutory successor
on the basis of REINSURER'S liability to CEDING COMPANY without diminution
because of the insolvency of CEDING COMPANY, or because the liquidator,
receiver, conservator or statutory successor of CEDING COMPANY has failed
to pay all or a portion of any claim.
B. In the event of insolvency of CEDING COMPANY, the liquidator, receiver, or
statutory successor will, within reasonable time after the claim is filed
in the insolvency proceeding, give written notice to REINSURER of all
pending claims against CEDING COMPANY on any VARIABLE ANNUITY CONTRACTS
reinsured. While a claim is pending, REINSURER may investigate and
interpose, at its own expense, in the proceedings where the claim is
adjudicated, any defense or defenses that it may deem available to CEDING
COMPANY or its liquidator, receiver, or statutory successor. The expense
incurred by REINSURER will be chargeable, subject to court approval against
CEDING COMPANY as part of the expense of liquidation to the extent of a
proportionate share of the benefit that may accrue to CEDING COMPANY solely
as a result of the defense undertaken by REINSURER. Where two or more
reinsurers are participating in the same claim and a majority in interest
elects to interpose a defense or defenses to any such claim, the expense
will be apportioned in accordance with the terms of the reinsurance
agreement as though such expense had been incurred by CEDING COMPANY.
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ARTICLE XIII - ARBITRATION
A. Any dispute between the parties arising out of or in connection with this
Agreement including its formation and validity, whether such dispute arises
before or after the termination of this Agreement, shall be submitted to
arbitration upon the written request of either party. Unless the parties
agree upon a single arbitrator, within 30 days of one party receiving a
written request from the other for arbitration, the claimant (the party
requesting arbitration) shall appoint an arbitrator and give written notice
thereof to the respondent (the party receiving the request for
arbitration). Within 30 days of receiving such notice, the respondent shall
appoint the second arbitrator and give notice thereof to the claimant,
failing which the claimant may apply to the President, for the time being,
of the Chartered Institute of Arbitrators, Bermuda Branch to nominate an
arbitrator on behalf of the respondent. The two arbitrators shall select a
third arbitrator within 30 days of the appointment of the second
arbitrator. If the two arbitrators fail to agree on the selection of the
third arbitrator within 30 days of the appointment of the second
arbitrator, each arbitrator shall submit to the other a list of three
candidates, each arbitrator shall select one name from the list submitted
by the other and the third arbitrator shall be selected from the two names
chosen by a lot drawing procedure to be agreed upon by the arbitrators,
failing which agreement the third arbitrator shall be chosen by the
President, for the time being, of the Chartered Institute of Arbitrators,
Bermuda Branch.
B. Unless the parties otherwise agree, the arbitrators shall be present or
former officers of life insurance or reinsurance companies other than the
contracting companies or affiliates thereof. The three arbitrators shall
decide by majority. If no majority can be reached, the verdict of the third
arbitrator, who shall act as chairman of the tribunal, shall prevail.
C. The arbitration tribunal shall have power to fix all procedural rules for
the holding of the arbitration including discretionary power to make orders
as to matters which it may consider proper in the circumstances of the case
including pleadings, discovery, inspection of documents, examination of
witnesses and any other matter whatsoever relating to the conduct of the
arbitration and may receive and act upon such evidence whether oral or
written strictly admissible or not as it shall in its discretion think fit.
The panel will be relieved of all judicial formality and will not be bound
by rules of procedure and evidence. The panel will interpret this Agreement
as an honorable engagement rather than merely as a legal obligation and
will make its decision based upon the custom and practice of the insurance
and reinsurance business following the termination of the hearings.
Judgment upon the award may be entered in any court having jurisdiction
thereof. The panel is empowered to grant interim relief as it may deem
appropriate.
D. The decision of the arbitration panel shall be in writing and shall be
final and binding on both parties. The arbitration panel may, at its
discretion, award costs and expenses, as it deems appropriate, including,
but not limited to, attorneys' fees, and interest. In the absence of a
decision to the contrary by the arbitration panel, each party shall bear
the expense of its own arbitrator and shall jointly and equally bear with
the other party the expense of the third arbitrator and of the arbitration.
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E. The seat of the arbitration shall be in Bennuda.
ARTICLE XIV -- OFFSET
Either party shall have, and may exercise at any time the right to offset any
balance or amounts whether on account of premiums, or on account of claims or
otherwise, due from one party to the other under the terms of this Agreement.
ARTICLE XV -- MISCELLANEOUS
A. This Agreement means the text hereof, the Schedules and any Amendments
effected in accordance with this paragraph. The Agreement constitutes the
entire statement of agreement between the parties with regard to the
subject matter hereof. There are no other understandings or agreements
between the parties regarding the contracts reinsured other than as
expressed in this Agreement. Any changes or additions to this Agreement
must be effected by means of a written amendment that has been signed by
both parties.
B. Notwithstanding the termination of this Agreement as provided herein, its
provisions will continue to apply hereunder to the end that all obligations
and liabilities incurred by each party hereunder will be fully performed
and discharged.
C. If any provision of this Agreement should be rendered invalid, illegal or
unenforceable, the parties will renegotiate the Agreement in good faith to
cure such invalid, illegal or unenforceable provision. If such negotiations
are unsuccessful to resolve the matter, then (i) such invalid, illegal or
unenforceable provision will be deleted from the Agreement, (ii) to the
maximum extent permitted by law, such invalidity, illegality or
unenforceability will not affect any other provisions of this Agreement and
(iii) this Agreement will be construed to give effect to the remaining
provisions hereof to carry out its original intent.
ARTICLE XVI -- GOVERNING LAW
This Agreement shall be governed by and construed in accordance with the laws of
the state of Nebraska.
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ARTICLE XVII - NOTICES
A All notices required to be given hereunder shall be in writing and shall be
deemed delivered if personally delivered, sent via reputable overnight
carrier, facsimile with proof of successful transmission, or dispatched by
certified or registered mail, return receipt requested, postage prepaid,
addressed to the parties as follows:
Ameritas Variable Life Insurance Company
X.X. Xxx 00000
Xxxxxxx, XX 00000-0000
Attention: Xxxxxx X. XxXxxxx
Phone: (000) 000-0000
Facsimile: (000) 000-0000
Chief Financial Officer
ACE Tempest Life Reinsurance Ltd.
Xxx XXX Xxxxxxxx, 00 Xxxxxxxxxx Xxxxxx
Xxxxxxxx, XX 00 Xxxxxxx
Xxxxx: (000) 000-0000 Fax: (000) 000-0000
B. Notice shall be deemed given on the date it is received in accordance with
the foregoing. Any party may change the address to which to send notices by
notifying the other party of such change of address in writing in
accordance with the foregoing.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed
in duplicate on the dates indicated to be effective as of the date specified
above.
ACE Tempest Life Reinsurance Ltd. Ameritas Variable Life Insurance Company
By /s/ Xxx Xxxxxxx By s/s Xxxxxxx X. Xxxxxxx
Name Xxx Xxxxxxx Name Xxxxxxx X. Xxxxxxx
Title SVP and Chief Life Officer Title VP - Ind. Prod. Mgmt_
Date April 28, 2004 Date 5-5-04
ATTEST: ATTEST:
By /s/ Xxxxx Xx By s/s Xxxxx X. Xxxxxxx
Name Xxxxx Xx Name Xxxxx X. Xxxxxxx
Title AVP & LIfe Actuary Title VP - Ind. Policy Processing
Date April 28, 2004 Date 5-5-04
15
SCHEDULE A-1
Description of Guaranteed Minimum Death Benefit (GMDB)
for CONTRACT TYPES listed in Schedule B-1
7-Year "Step-Up" GMDB 7-Year ratchet GMDB frozen at the most recent 7-year contract anniversary
on or prior to the contract anniversary nearest the INSURED'S 75th
birthday. GMDB for attained ages 75-84 is the GMDB on the most recent
7-year contract anniversary on or prior to the contract anniversary
nearest the INSURED's 75th birthday adjusted for subsequent premiums and
withdrawals. GMDB after the contract anniversary nearest the INSURED's
851h birthday is the standard death benefit (Return of Premium or Account
Value, if greater). GMDB is reduced proportionally (based on Account
Value) for any partial withdrawals. For issue ages 68-70, ACCOUNT VALUE as
of 7th contract anniversary is used in determining GMDB prior to contract
anniversary nearest the INSURED's 85th birthday. For issue ages 69 and 70,
reference to 75th birthday is replaced by 76th and 77th birthday,
respectively.
Note: this benefit is a 6-year ratchet for contracts in the state of
Texas.
"1-Yr Periodic Step-Up" Annual ratchet GMDB frozen at the contract anniversary nearest
GMDB the INSURED"S 80th birthday. GMDB for attained ages 80-84 is the GMDB on
the contract anniversary nearest the
INSURED's 80th birthday adjusted for
subsequent premiums and withdrawals. GMDB
after the contract anniversary nearest the
INSURED's 85th birthday is the standard
death benefit (Return of Premium or
Account Value, if greater). GMDB is
reduced proportionally (based on Account
Value) for any partial withdrawals.
"5% Roll-up" GMDB 5% roll-up GMDB (limited to 200% of premiums minus adjustments for partial
surrenders) frozen at the contract anniversary nearest the INSURED"S 80th
birthday. GMDB for attained ages 80-84 is the GMDB on the contract
anniversary nearest the INSURED's 80th birthday adjusted for subsequent
premiums and withdrawals. GMDB after the contract anniversary nearest the
INSURED's 85th birthday is the standard death benefit (Return of Premium
or Account Value, if greater). GMDB is reduced proportionally (based on
Account Value) for any partial withdrawals.
16
"Greater of' GMDB Greater of annual ratchet GMDB frozen at the contract anniversary nearest
the INSURED"S 80th birthday and 5% rollup GMDB (limited to 200% of premiums
minus adjustments for partial surrenders) frozen at the contract
anniversary nearest the INSURED"S 80th birthday. GMDB for attained ages
80-84 is the GMDB on the contract anniversary nearest the INSURED's 80th
birthday adjusted for subsequent premiums withdrawals. GMDB after the
contract anniversary nearest the INSURED's 85th birthday is the standard
death benefit (Return of Premium or Account Value, if greater). GMDB is
reduced proportionally (based on Account Value) for any partial withdrawals.
"Return of Premium" GMDB Total premiums paid less an adjustment for any partial withdrawals.
GMDB is reduced dollar-for-dollar for any partial withdrawals.
GMDB benefits are fully defined in the prospectus and related materials.
17
SCHEDULE B-1
CONTRACT TYPES reinsured under this Agreement
Contract Description Form Number Issue Dates
Medley 4888 January 1, 2003
Benefit Rider Forms with Medley
Value+ Option VP 4901 January 1, 2003
GMDB -- 1-Yr Periodic Step-Up GMDB 4902 Rev. 2-01 January 1, 2003
GMDB -- 5% Roll-Up GMDB 4903 January 1, 2003
GMDB -- Greater of GMDB 0000 Xxxxxxx 0, 0000
XXX -- Xxxxxx Protection Benefit EPB 4901 January 1, 2003
EEB -- Expanded Estate
Protection Benefit EEPB 4902 January 1, 2003
Acclaim 4882 January 1, 2003
Annuity III-Plus 4786 January 1, 2003 Benefit
Rider Forms with Acclaim and Annuity III-Plus
GMDB -- 7-yr Step-Up GMDB 4095 January 1, 2003
All state variations of the above listed contract and rider forms are reinsured
under this Agreement.
18
SCHEDULE B-2
Investment Funds under CONTRACT TYPES Reinsured under this Agreement
FIXED ACCOUNT
LOANED AMOUNT
XXXXX
Xxxxx American Balanced
Xxxxx American Leveraged Al1Cap
AMERICAN CENTURY
VP Income & Growth
AMERITAS PORTFOLIOS
Ameritas Core Strategies effective 11/1/03
Ameritas Emerging Growth discontinued 10/30/03
Ameritas Growth
Ameritas Growth With Income discontinued 10/30/03
Ameritas Income & Growth
Ameritas Index 500
Ameritas MidCap Growth
Ameritas Money Market
Ameritas Research discontinued 10/30/03
Ameritas Select
Ameritas Small Capitalization
Ameritas Small Company Equity
XXXXXXX PORTFOLIOS
CVS Income
CVS Social Balanced
CVS Social Equity
CVS Social International Equity
CVS Social Mid Cap Growth
CVS Social Small Cap Growth
DREYFUS
MidCap Stock - Service Shares
FIDELITY (Initial Class for Acclaim, Annuity III-Plus; Service Class 2 for
Medley)
VIP Asset Manager
VIP Asset Manager: Growth
VIP Contrafund
VIP Equity-Income
VIP Growth
VIP High Income
VIP Investment Grade Bond
VIP Overseas
INVESCO FUNDS VIF- Dynamics MFS
New Discovery
19
Strategic Income
Utilities
XXXXXX XXXXXXX - referred to as XXX XXXXXX effective 5/1/03
Emerging Markets Equity renamed Emerging Markets Equity --Class I effective 5/1/03
Global Value Equity renamed Global Value Equity -- Class I effective 5/1/03
International Magnum renamed International Magnum -- Class I effective 5/1/03 renamed U.S. Real
U.S. Real Estate Estate -- Class I effective 5/1/03
SALOMON BROTHERS
Variable Capital- renamed Variable All Cap effective 5/1/03
SUMMIT PINNACLE SERIES
Nasdaq-100 Index
Xxxxxxx 2000 Small Cap Index S&P
MidCap 400 Index
THIRD AVENUE
Third Avenue Value
20
SCHEDULE C-1
Limits and Rules of CEDING COMPANY
1) CEDING COMPANY will determine the GMDB CLAIM (if any) for each VARIABLE
ANNUITY CONTRACT within seven (7) working days of receipt of due proof of
death and all claim forms required under the VARIABLE ANNUITY CONTRACTS.
2) RETAIL ANNUITY PREMIUMS shall not exceed $1 million unless the CEDING
COMPANY has granted prior written approval to some other limit.
3) Valid VARIABLE ANNUITY CONTRACT issue ages are 0 through 70 for policies to
which a GMDB rider is attached.
21
SCHEDULE C-2
Limits and Rules of REINSURER
1) The limitation on RETAIL ANNUITY PREMIUM (the "Premium Maximum") for any
VARIABLE ANNUITY CONTRACT is provided in Schedule C-1. If a VARIABLE
ANNUITY CONTRACT has a RETAIL ANNUITY PREMIUM in excess of the Premium
Maximum, and the CEDING COMPANY does not receive written approval from the
REINSURER for such excess amount, then the REINSURER'S Quota Share as
provided in Schedule E will be proportionally reduced as described in
Schedule E.
2) The REINSURER'S liability cannot be increased as a result of CEDING
COMPANY'S actions with respect to contested claims.
3) The REINSURER will not be liable for extra contractual damages (whether
they constitute compensatory damages, statutory penalties, exemplary or
punitive damages) which are awarded against the CEDING COMPANY unless the
REINSURER provided written consent to the action or inaction of the CEDING
COMPANY which resulted in the imposition of extra contractual damages.
4) For purposes of Article III, paragraph C (ii), the limit on cumulative
RETAIL ANNUITY PREMIUMS is $450 million multiplied by the REINSURER'S Quota
Share as provided in Schedule E.
5) RETAIL ANNUITY PREMIUMS paid under reinsured ACTIVE CONTRACTS after the
date provided in Article III, paragraph C will continue to be subject to
this Agreement.
6) Any VARIABLE ANNUITY CONTRACT under which a spousal continuation occurs
will continue to be subject to this Agreement if the re-registration occurs
before the date provided in Article III, paragraph C (ii).
7) REINSURER'S liability is restricted to VARIABLE ANNUITY CONTRACTS issued in
the United States of America.
22
SCHEDULE D
REINSURANCE PREMIUM RATE
The Annual REINSURANCE PREMIUM RATE is expressed below in basis points (0.0001):
--------------------------------------------------------------------------------
Benefit Type Issue Ages Annual Reinsurance
Premium Rate (basis points)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
7-Year "Step-Up" GMDB 0-70 13.00
--------------------------------------------------------------------------------
1-Year "Step-Up" GMDB 0-70 19.00
--------------------------------------------------------------------------------
"5% Roll-up" GMDB 0-70 27.00
--------------------------------------------------------------------------------
"Greater of' GMDB 0-70 29.00
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Subject to the terms and conditions of this Agreement, the REINSURANCE PREMIUM
RATE is guaranteed for all ACTIVE CONTRACTS reinsured under this Agreement.
23
SCHEDULE E
REINSURER'S Quota Share
1) For each VARIABLE ANNUITY CONTRACT under which aggregate RETAIL ANNUITY
PREMIUMS are equal to or less than $1 million, REINSURER accepts a 100%
Quota Share of the GMDB CLAIMS described in this Agreement, subject to the
limits and other teens and conditions described herein.
2) For each VARIABLE ANNUITY CONTRACT for which aggregate RETAIL ANNUITY
PREMIUMS are in excess of $1 million, and where the CEDING COMPANY has not
received written approval to include such excess amount, the REINSURER'S
Quota Share percentages shown above shall be reduced by multiplying the
Reinsurer's respective Quota Share percentages by a fraction, the numerator
of which is $1 million and the denominator of which is the aggregate RETAIL
ANNUITY PREMIUMS
24
SCHEDULE F
Monthly Reporting Format and Data Requirements
Seriatim Report to be prepared monthly by CEDING COMPANY and delivered to
REINSURER:
------------------------------------------------------------------------------------------------------------------------
Field Comments
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Report Date YYYYMMDD
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Policy Number or Contract Number
------------------------------------------------------------------------------------------------------------------------
Policy Issue Date YYYYMMDD
------------------------------------------------------------------------------------------------------------------------
Policy Tax Status Q or N (Qualified or Non-qualified)
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Annuitant Sex M or F
------------------------------------------------------------------------------------------------------------------------
Annuitant Date of Birth YYYYMMDD
------------------------------------------------------------------------------------------------------------------------
Annuitant Social Security #
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Joint Annuitant Sex M or F
------------------------------------------------------------------------------------------------------------------------
Joint Annuitant Date of Birth YYYYMMDD
------------------------------------------------------------------------------------------------------------------------
Joint Annuitant Social Security #
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Owner Sex M or F
------------------------------------------------------------------------------------------------------------------------
Owner Date of Birth YYYYMMDD
------------------------------------------------------------------------------------------------------------------------
Owner Social Security #
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Joint Owner Sex M or F
------------------------------------------------------------------------------------------------------------------------
Joint Owner Date of Birth YYYYMMDD
------------------------------------------------------------------------------------------------------------------------
Joint Owner Social Security #
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Return of Premium Death Benefit Value If applicable
------------------------------------------------------------------------------------------------------------------------
Reset Death Benefit Value If applicable
------------------------------------------------------------------------------------------------------------------------
Ratchet Death Benefit Value If applicable
------------------------------------------------------------------------------------------------------------------------
Roll-up Death Benefit Value If applicable
------------------------------------------------------------------------------------------------------------------------
Guaranteed Minimum Death Benefit Value Greatest of above
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Current Account Value
------------------------------------------------------------------------------------------------------------------------
Current Death Benefit Greater of AV and GMDB
------------------------------------------------------------------------------------------------------------------------
Current GMDB Net Amount At Risk Max (O,GMDB-AV)
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Relevant Life for GMDB Claim A or 0 (Annuitant / Owner)
------------------------------------------------------------------------------------------------------------------------
GMDB Claim Trigger 1 or 2 (First to die / Second to die)
------------------------------------------------------------------------------------------------------------------------
25
Reporting Requirements (continued)
------------------------------------------------------------------------------------------------------------------------
Field Comments
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Value in Aggressive Growth Funds
------------------------------------------------------------------------------------------------------------------------
Value in Balanced Funds
------------------------------------------------------------------------------------------------------------------------
Value in Corporate Bond Funds
------------------------------------------------------------------------------------------------------------------------
Value in Government Bond Funds
------------------------------------------------------------------------------------------------------------------------
Value in Growth Funds
------------------------------------------------------------------------------------------------------------------------
Value in Growth and Income Funds
------------------------------------------------------------------------------------------------------------------------
Value in High Yield Bond Funds
------------------------------------------------------------------------------------------------------------------------
Value in International Bond Funds
------------------------------------------------------------------------------------------------------------------------
Value in International Stock Funds
------------------------------------------------------------------------------------------------------------------------
Value in Money Market Funds
------------------------------------------------------------------------------------------------------------------------
Value in Specialty Funds
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Value in General Account
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Termination Date YYYYMMDD
------------------------------------------------------------------------------------------------------------------------
Termination Reason A (Annuitization), D (Death), 0 (Other)
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Total Number of Contracts Split by Benefit Type
------------------------------------------------------------------------------------------------------------------------
Total Account Value Split by Benefit Type, Age Band, and Fund
Category
------------------------------------------------------------------------------------------------------------------------
Total GMDB Value Split by Death Benefit Type, Age Band, and
Fund Category
------------------------------------------------------------------------------------------------------------------------
Total Reinsurance Premium Due
------------------------------------------------------------------------------------------------------------------------
Total GMDB Claims
------------------------------------------------------------------------------------------------------------------------
Net Monthly Amount Due
------------------------------------------------------------------------------------------------------------------------
26
Claims Report to be prepared monthly by CEDING COMPANY and delivered to
REINSURER including the following information:
Seriatim Report Data as of the Date of Notification (the date that death related
paperwork is submitted in full)
Date of Death
Date of Notification
Death Benefit Paid
Death Benefit Amount Paid in Excess of Account Value
0000000
Vadbetem2A
27
AMENDMENT NO. 1
to the
VARIABLE ANNUITY REINSURANCE AGREEMENT
Effective January 1, 2003
Between
AMERITAS VARIABLE LIFE INSURANCE COMPANY
("CEDING COMPANY")
Lincoln, Nebraska
and
ACE TEMPEST LIFE REINSURANCE LTD.
("REINSURER")
Hamilton, Bermuda
Effective December 31, 2004, this Amendment is hereby attached to and becomes a
part of the above-described Reinsurance Agreement. It is mutually agreed that:
o Article III Section C, is hereby replaced by the attached Article III
Section C
AMERITAS VARIABLE LIFE INSURANCE COMPANY
By: /s/ Attest: Xxxxx X. Xxxxxxx
Title: VP Title: Vice President
Date: 12/29/04 Date 12/29/04
ACE TEMPEST LIFE REINSURANCE LTD.
By: /s/ Attest:
Title: SVP and Chief Life Officer Title: VP and LIfe Actuary
Date: 12/24/04 Date 12/22/04
ARTICLE III - EFFECTIVE DATE, BUSINESS COVERED, TERM AND TERMINATION
C. Business covered by this Agreement does not include new VARIABLE ANNUITY
CONTRACTS issued by the CEDING COMPANY on and after the earlier of (i)
11:59 p.m. Eastern Standard Time, on December 31, 2006 or (ii) the date
that cumulative RETAIL ANNUITY PREMIUMS paid on ACTIVE CONTRACTS exceed
the limit provided in schedule C-2.
AMENDMENT NO.2
to the
VARIABLE ANNUITY REINSURANCE AGREEMENT
Effective January 1, 2003
Between
AMERITAS VARIABLE LIFE INSURANCE COMPANY
("CEDING COMPANY")
Lincoln, Nebraska
and
ACE TEMPEST LIFE REINSURANCE LTD.
("REINSURER")
Xxxxxxxx, Bermuda
Effective December 31, 2006, this Amendment is hereby attached to and becomes a
part of the above-described Reinsurance Agreement. It is mutually agreed that: o
Article III Section C, is hereby replaced by the attached Article III Section C
o Article XV Section D, is hereby added by the attached Article XV Section D o
Schedule B-2, is hereby replaced by the attached Schedule B-2
AMERITAS VARIABLE LIFE INSURANCE COMPANY
By: /s/ Attest:
Title: VP Title: 2nd VP & Assoc Actuary
Date: 2/14/07 Date 2/13/07
ACE TEMPEST LIFE REINSURANCE LTD.
By: /s/ Attest:
Title: SVP and Chief Pricing Officer Title: Chief Actuary
Date: Jan 31, 2004 Date January 31, 2004
ARTICLE III -- EFFECTIVE DATE, BUSINESS COVERED, TERM AND TERMINATION
C. Business covered by this Agreement does not include new VARIABLE ANNUITY
CONTRACTS issued by the CEDING COMPANY on and after the earlier of (i)
11:59 p.m. Eastern Standard Time, on December 31, 2008 or (ii) the date
that cumulative RETAIL ANNUITY PREMIUMS paid on ACTIVE CONTRACTS exceed the
limit provided in schedule C-2.
ARTICLE XV -- MISCELLANEOUS
D. The REINSURER will reimburse the CEDING COMPANY for United States
Federal Excise Tax assessed and paid on this Agreement for the REINSURER's
quota share of the business, as described in Schedule E, but in no event
will the reimbursement be greater than 1% of reinsurance premium paid on
this Agreement. Such reimbursement will be made on the first MONTHLY
VALUATION DATE that coincides with a REINSURANCE PREMIUM DUE DATE and that
falls at least ten (10) BUSINESS DAYs after notice of the tax payment is
received by the REINSURER. The CEDING COMPANY will be responsible for the
timely payment of Federal Excise Tax and for the filing of all required
tax, information returns or filings with the Internal Revenue Service with
respect to this Agreement.
SCHEDULE B-2
Investment Funds under CONTRACT TYPES Reinsured under this Agreement
FIXED ACCOUNT
LOANED AMOUNT
XXXXX -- referred to as XXXXX Class 0 (5/1/04)
Xxxxx American Balanced
Xxxxx American Leveraged AllCap-merged into Ameritas Income & Growth (11/1/05)
AMERICAN CENTURY
VP Income & Growth
AMERITAS PORTFOLIOS
Ameritas Core Strategies - added (11/1/03)
Ameritas Emerging Growth-merged into Core Strategies (10/30/03)
Ameritas Growth - merged into Ameritas Income & Growth (11/1/05)
Ameritas Growth With Income - merged into Core Strategies (10/30/03)
Ameritas Income & Growth Ameritas Index 500
Ameritas MidCap Growth-renamed Ameritas Focused MidCap Value (5/01/03)
Ameritas Money Market
Ameritas Research - merged into Core Strategies (10/30/03)
Ameritas Select - renamed Focused Mid-Cap Value (5/1/06)
Ameritas Small Capitalization - renamed Ameritas Small Cap (12/10/04)
Ameritas Small Company Equity
XXXXXXX PORTFOLIOS CVS Income
CVS Social Balanced
CVS Social Equity
CVS Social International Equity CVS Social
Mid Cap Growth CVS Social Small Cap Growth
DREYFUS
MidCap Stock - Service Shares
FIDELITY (Initial Class for Acclaim, Annuity III-Plus; Service Class 2
for Medley)
VIP Asset Manager
VIP Asset Manager: Growth
VIP Contrafund
VIP Equity-Income
VIP Growth
VIP High Income
VIP Investment Grade Bond
VIP Overseas
INVESCO FUNDS
VIF- Dynamics -- renamed AIM V.I. Dynamics - Series I (5/1/05)
MFS
New Discovery -- renamed New Discovery - Initial Class (11/1/05)
Global Governments -- renamed Global Governments - Initial Class (11/1/05)
Utilities -- renamed Utilities - Initial Class (11/1/05)
XXXXXX XXXXXXX -- referred to as XXX XXXXXX (5/1/03)
Emerging Markets Equity -- renamed Emerging Markets Equity -- Class I
(5/1/03) Global Value Equity -- renamed Global Value Equity - Class I
(5/1/03) International -- renamed International Magnum -- Class I (5/1/03)
U.S. Real Estate -- renamed U.S. Real Estate -- Class I (5/1/03)
SALOMON BROTHERS
Variable Capital -- renamed Variable All Cap (5/1/03); merged into Ameritas
Income & Growth (11/1/05)
SUMMIT PINNACLE SERIES -- referred to as SUMMIT (5/1/06)
Nasdaq-100 Index
Xxxxxxx 2000 Small Cap Index
S&P MidCap 400 Index
THIRD AVENUE Third Avenue Value
AUTOMATIC REINSURANCE AGREEMENT
between
AMERITAS VARIABLE LIFE INSURANCE COMPANY
(a corporation organized under the laws of the state of Nebraska,
having its principal place of business in Lincoln, Nebraska;
hereinafter referred to as the CEDING COMPANY)
and
AXA CORPORATE SOLUTIONS LIFE REINSURANCE COMPANY
(a corporation organized under the laws of the state of Delaware,
having its principal place of business in New York, New York; '
hereinafter referred to as the REINSURER)
Effective Date: January 1, 2001
Contents
Articles Page
I. Scope of Agreement 1
II. Commencement and Termination of Liability 2
III. Oversights and Clerical Errors 3
IV. Net Amount at Risk 4
V. Reinsurance Premiums 5
VI. Reinsurance Administration 6
WI. Settlement of Claims 7
VIII. Treaty Reserve 8
IX. Recapture Privileges 9
X. Inspection of Records 10
XL Insolvency 11-12
XII. Negotiation 13
XIII. Arbitration 14
XIV. Right to Offset Balances Due 15
XV. Contract and Program Changes 16
XVI. Confidentiality 17
XVII. Miscellaneous 18
XVIII. Severability 19
XIX. DAC Tax 20
XX. Duration of Agreement 21
XXI. Execution of Agreement 22
Schedules
A. Plans of Reinsurance
B. Investment Funds
C. Data Layout
Exhibits
I: Reinsurance Premiums
II. Benefit Limitation Rule
III. Confidentiality and Non-Disclosure Agreement
Ameritas Variable Life Agreement No.
2001-36-DB Effective January 1, 2001
All provisions of this Agreement are subject to the laws of the State of
Delaware.
Article I
Scope of Agreement
A. On and after January 1, 2001 (Effective Date), the CEDING COMPANY shall
automatically reinsure with the REINSURER and the REINSURER shall
automatically accept, a quota share percentage (defined in Schedule A) of
the MNAR (defined in Article IV), generated prior to termination of the
REINSURER's liability (defined in Article II), by the Guaranteed Minimum
Death Benefit (GMDB) provisions within the variable annuity contracts
issued by the CEDING COMPANY as set forth in Schedule A.
B. The REINSURER's maximum aggregate VNAR (defined in Article IV) claim
payment in any one calendar year shall not exceed two hundred (200) basis
points of the REINSURER's quota share percentage of the average aggregate
account value over each respective calendar year of coverage. This claim
limit applies in aggregate to both this Agreement and Agreement No.
2001-43 between the REINSURER and the CEDING COMPANY's affiliate, Acacia
National Life Insurance Company. (Agreement No. 2001-43 reinsures a
related product.) This average shall be calculated by way of a trapezoidal
rule as shown in Exhibit II.
C. The REINSURER's annual aggregate SCNAR (defined in Article IV) claim
payment has no independently calculated annual aggregate claim limit.
D. The REINSURER's maximum MNAR (defined in Article IV) claim payment on any
individual life reinsured hereunder shall be limited to one million
dollars ($1,000,000) multiplied by the quota share percentage reinsured by
the REINSURER.
E. This Agreement covers only the CEDING COMPANY's contractual liability for
claims paid under variable annuity contract forms specified in Schedule A
and supported by investment funds specified in Schedule B and its
Amendments, that were submitted to the REINSURER prior to their issuance.
Article II
Commencement and Termination of Liability
A. On reinsurance ceded under the terms of this Agreement, the liability of
the REINSURER shall commence simultaneously with that of the CEDING
COMPANY. The liability under this Agreement will terminate either in
accordance with the Duration of Agreement provisions of this Agreement as
stated in Article XX, or, for an individual contract, upon the earliest of
the following occurrences defined in the contract(s) reinsured hereunder:
1. the date the owner elects to annuitize;
2. surrender or termination of the contract;
3. the death of the owner or annuitant where such death triggers the
payment of a contractual death benefit, except when spousal
continuance has been elected. On spousal continuance election the
REINSURER's liability will be terminated upon death of the spouse;
4. attainment of the maximum annuitization age or attained age 85, if
earlier.
B. The REINSURER shall be liable to reimburse claims only on those deaths
where the actual date of death is on or after the Effective Date of this
Agreement, in accordance with Article WI.
Article III
Oversights and Clerical Errors
A. Should either the CEDING COMPANY or the REINSURER fail to comply with any
of the terms of this Agreement, and if this is shown to be unintentional
and the result of a misunderstanding, oversight or clerical error on the
part of either the CEDING COMPANY or the REINSURER, then this Agreement
shall not be deemed abrogated thereby, but both companies shall be
restored to the positions they would have occupied had no such oversight,
misunderstanding or clerical error occurred. Such conditions are to be
reported and corrected promptly after discovery.
B. If the CEDING COMPANY or the REINSURER discovers that the CEDING COMPANY
did not cede reinsurance on a contract it should have reinsured under this
Agreement, the CEDING COMPANY will take prompt, reasonable and necessary
steps to ensure that similar oversights do not recur. Then this Agreement
shall not be deemed abrogated thereby, but both companies shall be
restored to the positions they would have occupied had the CEDING COMPANY
ceded such reinsurance at the original date. If the REINSURER receives no
evidence that the CEDING COMPANY has taken action to remedy such a
situation, the REINSURER reserves the right to limit its liability to
reported contracts only.
C. Any negligent or deliberate acts or omissions by the CEDING COMPANY
regarding the insurance or reinsurance provided are the responsibility of
the CEDINQ COMPANY and its liability insurer, if any, but not that of the
REINSURER. The previous sentence does not negate the REINSURER's liability
under Article VII, Settlement of Claims, of this Agreement.
Article IV
Net Amount at Risk
A. The MNAR (mortality net amount at risk) for each variable annuity contract
reinsured hereunder shall be equal to the following:
MNAR = VNAR + SCNAR where:
o VNAR (Variable Net Amount at Risk) = Maximum (a, b) multiplied by
the quota share percentage (defined in Schedule A) where:
a = (Contractual Rider Death Benefit -- Maximum (Net Considerations,
Account Value)) b=0
o SCNAR (Surrender Charge Net Amount at Risk) = Surrender Charges
multiplied by the quota share percentage
B. The CEDING COMPANY's risk shall be equal to its retention, as defined
in Schedule A.
C. Spousal Continuances (as described in Schedule A).
The REINSURER will reimburse the CEDING COMPANY for the REINSURER's quota
share percentage of the SCNAR realized upon death consistent with the
manner in which the CEDING COMPANY waives the surrender charges when death
benefit is paid out.
Also covered under this Agreement are surrender charges arising from
additional premium deposits contributed by the spouse to the contract on or
after the spousal continuance date. In no event will the REINSURER
reimburse surrender charges arising from the same premium deposits more
than once.
D. The death benefit and the surrender charges will be as described in the
variable annuity contract forms specified in Schedule A.
Article V
Reinsurance Premiums
A. The reinsurance premium rate is a flat asset-based premium rate which is
applied to the average aggregate account value in. force over the reporting
period multiplied by the quota share percentage reinsured by the REINSURER.
The reporting period is monthly.
B. The annualized reinsurance premium rate is shown en6Exhibit I a
is--expressed-in-terms of basis points. In practice, it shall be applied on
a monthly basis b utilizing one-twelfth (I/12th) f the annualized rate.
C. The total reinsurance premium due and payable in the first month shall at
least equal one thousand dollars ($1,000). Thereafter, the minimum
reinsurance premium that is due and payable shall increase by eight hundred
dollars ($800) for each month after the first month until it reaches five
thousand dollars ($5,000) six months after the Effective Date of this
Agreement. The total reinsurance premium that is due and payable in any
month thereafter shall at least be five thousand dollars ($5,000). The
minimum reinsurance premium applies in aggregate to the business reinsured
with the REINSURER by the CEDING COMPANY under this Agreement and by the
CEDING COMPANY's affiliates, First Ameritas Life Insurance Corporation of
New York and Acacia National Life Insurance Company, under the Agreements
known as No. 2001-38 and No. 2001-43, respectively.
D. For Spousal Continuances, reinsurance premium rates shall apply as
described in this Article V. Should these rates be age-based then the new
reinsurance premium rate for spousal continuances shall be based off the
attained age of the surviving spouse at the time of election of spousal
continuance. After the new business facility expires, as described under
Article XX, the REINSURER reserves the right to declare new rates.
E. The reinsurance premium structure described above shall remain in effect as
long as the death benefit design, contract fees, mortality and expense
charges, administration fees and surrender charges in effect at the
inception of this Agreement remain unchanged.
Article VI
Reinsurance Administration
A. Within thirty (30) days of the end of each calendar month, the CEDING
COMPANY will furnish the REINSURER with a seriatim electronic report as
detailed in Schedule C, for each contract specified in Schedule A, valued
as of the last day of that month.
B. Additionally, within thirty (30) days of the end of each calendar month,
the CEDING COMPANY will furnish the REINSURER with a separate paper report
summarizing the following:
1. reinsurance premiums due to the REINSURER separate for each premium
class, if any, as shown in Exhibit I;
2. benefit claim reimbursements due to the CEDING COMPANY in total and
broken down by VNAR and SCNAR.
C. If the net balance is due to the REINSURER, the amount due shall be
remitted with the report statement. If the net balance is due to the CEDING
COMPANY, the REINSURER shall remit the amount to the CEDING COMPANY within
ten (10) days of receipt of the report.
D. Furthermore, the REINSURER will use the summary data in Schedule C to
calculate and monitor its maximum annual aggregate VNAR liability
throughout the calendar year. Upon the receipt of the final report for the
calendar year, the REINSURER will "true-up" benefit claim reimbursements,
if necessary, for that calendar year.
E. The payment of reinsurance premiums is a condition precedent to the
liability of the REINSURER under this Agreement. In the event the CEDING
COMPANY does not pay reinsurance premiums in a timely manner as defined
below, the REINSURER may exercise the following rights:
1. The REINSURER reserves the right to charge interest if premiums are
not paid within sixty (60) days of the due date, as defined in
Paragraph B of this Article. The interest rate charged shall be based
on the ninety-(90) day Federal Government Treasury Xxxx as first
published by the Wall Street Journal in the month following the end of
the billing period plus fifty (50) basis points. The method of
calculation shall be simple interest (360-day year).
2. The REINSURER will have the right to terminate this Agreement when
premium payments are more than ninety (90) days past due by giving
ninety (90) days written notice of termination to the CEDING COMPANY.
As of the close of the last day of this ninety-(90) day notice period,
the REINSURER's liability for all risks reinsured associated with the
defaulted premiums under this Agreement will terminate. If all
premiums in default are received within the ninety-(90) day time
period, the Agreement will remain in effect.
F. Payments between the CEDING COMPANY and the REINSURER may be paid net of
any amount due and unpaid under this Agreement.
Article VII
Settlement of Claims
A. The claims that are eligible for reimbursement are only those that the
CEDING COMPANY is contractually required to pay on deaths that occur on or
after the Effective Date of this Agreement, subject to the benefit
limitations described in Article I.
B. In the event the CEDING COMPANY provides satisfactory proof of claim
liability to the REINSURER, claim settlements made by the CEDING COMPANY
shall be unconditionally binding on the REINSURER. ' In every case of
claim, copies of the proofs obtained by the CEDING COMPANY will be taken by
the REINSURER as sufficient.
C. Within thirty (30) days of the end of each calendar month, the CEDING
COMPANY shall notify the REINSURER of the reinsured contractual death
benefits paid in that month, based on the net amount at risk definition set
forth in Article IV, and the REINSURER shall reimburse the CEDING COMPANY,
as provided in Article VI, for the reinsured benefits.
D. Settlements by the REINSURER shall be in a lump sum regardless of the mode
of payment made by the CEDING COMPANY.
E. With respect to Extra-Contractual Damages, in no event will the REINSURER
participate in punitive or compensatory damages or statutory penalties
which are awarded against the CEDING COMPANY as a result of an act,
omission or course of conduct committed solely by the CEDING COMPANY in
connection with the insurance reinsured under this Agreement.
The parties recognize that circumstances may arise in which equity would
require the REINSURER, to the extent permitted by law, to share
proportionately in certain assessed situations in which the REINSURER was
an active party and directed, consented to, or ratified the act, omission
or course of conduct of the CEDING COMPANY which ultimately resulted in the
assessment of the extracontractual damages. In such situations, the
REINSURER and the CEDING COMPANY shall share such damages so assessed in
equitable proportions.
If the REINSURER declines to be party to the contest, compromise or
litigation of a claim, it will pay its full share of the amount reinsured,
as if there had been no contest, compromise or litigation. In addition, the
REINSURER will pay its proportionate share of covered expenses incurred to
the date it notifies the CEDING COMPANY that it declines to be a party to
the contest, compromise or litigation of a claim.
F. In no event will the REINSURER be liable for expenses incurred in
connection with a dispute or contest arising out of conflicting or any
other claims of entitlement to policy proceeds or benefits.
Article VIII
Treaty Reserve
The reserves held by the REINSURER in its statutory financial statement will be
greater than or equal to those required by the state where the statement is
filed.
Article IX
Recapture Privileges
The CEDING COMPANY may recapture existing reinsurance in force in accordance
with the following rules:
A. The CEDING COMPANY will notify the REINSURER of its intent to recapture at
least ninety (90) days prior to any recaptures.
B. No recapture will be made unless reinsurance has been in force for fifteen
(15) years.
C. Recapture will only be available provided the total carryforward, upon
release of treaty reserves, is in a positive position. The total
carryforward is defined as the sum of the carryforwards of this Agreement
and the complementary GMIB Agreement, if any, that reinsures the same
related contracts.
D. The carryforward for each Agreement is defined as the current period's
reinsurance premium, minus all reinsurance claims paid under this Agreement
for the current period, minus a two-and-one-half (2.5) basis point annual
expense allowance applied against the average aggregate Account Value for
the current period, minus the change in treaty reserves from the prior
period to the current period, plus the prior period's loss carryforward.
The monthly carryforward amount is accumulated at the ninety(90) day
Federal Government Treasury Xxxx rate as published in the Wall Street
Journal on the first business day of the current period plus two percent
(2%).
E. Upon election, recapture shall occur ratably over a thirty-six (36) month
period (i.e., every month the initial quota share percentage reduces 2.78%
times the initial quota share percentage). It is irrevocable once elected.
F. The CEDING COMPANY and the REINSURER agree to exchange carryforward
calculations each year-end to ensure ongoing agreement on the position of
the carryforward.
Article X
Inspection of Records
A. The REINSURER, or its duly appointed representatives, shall have the right
at all reasonable times and for any reasonable purpose to inspect at the
office of the CEDING COMPANY all records referring to reinsurance ceded to
the REINSURER.
B. Relating to the business reinsured hereunder, the CEDING COMPANY or its
duly appointed representatives shall have the right at all reasonable times
and for any reasonable purpose, to inspect at the office of the REINSURER
all records referring to reinsurance ceded from the CEDING COMPANY.
Article XI
Insolvency
A. A party to this Agreement will be deemed insolvent when it:
1. Applies for or consents to the appointment of a receiver,
rehabilitator, conservator, liquidator or statutory successor
("Authorized Representative") of its properties or assets; or
2. Is adjudicated as bankrupt or insolvent; or
3. Files or consents to the filing of a petition in bankruptcy, seeks
reorganization or an arrangement with creditors or takes advantage of
any bankruptcy, dissolution, liquidation, or similar law or statute;
or
4. Files or consents to the filing of a petition in bankruptcy, seeks
reorganization or an arrangement with creditors or takes advantage of
any bankruptcy, dissolution, liquidation, or similar law or statute.
B. In the event of the insolvency of the CEDING COMPANY, all reinsurance will
be payable on the basis of the liability of the CEDING COMPANY on the
policies reinsured directly to the CEDING COMPANY or its liquidator,
receiver or statutory successor without diminution because of the
insolvency of the CEDING COMPANY.
C. In the event of insolvency of the CEDING COMPANY, the liquidator, receiver
or statutory successor will, within a reasonable time after the claim is
filed in the insolvency proceeding, give written notice to the REINSURER of
all pending claims against the CEDING COMPANY or any policies reinsured.
While a claim is pending, the REINSURER may investigate such claim and
interpose, at its own expense, in the proceedings where the claim is
adjudicated, any defense or defenses which it may deem available to the
CEDING COMPANY or its liquidator, receiver or statutory successor. The
expenses incurred by the REINSURER will be chargeable, subject to court
approval, against the CEDING COMPANY as part of the expense of liquidation
to the extent of a proportionate share of the benefit which may accrue to
the CEDING COMPANY solely as a result of the defense undertaken by the
REINSURER. 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 expenses will be apportioned in accordance with the terms
of the Reinsurance Agreement as though such expense had been incurred by
the CEDING COMPANY.
D. Any debts or credits, matured or unmatured, liquidated or unliquidated, in
favor of or against either the REINSURER or CEDING COMPANY with respect to
this Agreement are deemed mutual debts or credits, as the case may be, and
will be offset, and only
the balance will be allowed or paid. However, in the event of liquidation,
the REINSURER may offset against undisputed amounts which are due and
payable to the CEDING COMPANY, only those undisputed amounts due the
REINSURER which are not more than one hundred and eighty (180) days past
due at the date of the court order of liquidation.
E. In the event of insolvency of the REINSURER, the liability of the REINSURER
shall not terminate but shall continue with respect to the reinsurance
ceded to the REINSURER by the CEDING COMPANY prior to the date of such
insolvency, and the CEDING COMPANY shall have a security interest in any
and all sums held by or under deposit in the name of the REINSURER. The
provisions of Article XX notwithstanding, the CEDING COMPANY may terminate
this Agreement immediately or new business. The CEDING COMPANY shall
provide written notification of its intent, but no waiting period shall be
required.
Article XII
Negotiation
A. Within ten (10) days after one of the parties has given the other the first
written notification of a specific dispute, each party will appoint a
designated officer to attempt to resolve the dispute. The officers will
meet at a mutually agreeable location as early as possible and as often as
necessary, in order to gather and furnish the other with all appropriate
and relevant information concerning the dispute. The officers will discuss
the problem and will negotiate in good faith without the necessity of any
formal arbitration proceedings. During the negotiation process, all
reasonable requests made by one officer to the other for information will
be honored. The designated officers will decide the specific format for
such discussions.
B. If the officers cannot resolve the dispute within thirty (30) days of their
first meeting, the parties will agree to submit the dispute to formal
arbitration, in accordance with Article XIII. However, the parties may
agree in writing to extend the negotiation period for an additional thirty
(30) days.
Article XIII
Arbitration
A. It is the intention of the CEDING COMPANY and the REINSURER that the
customs and practices of the insurance and reinsurance industry will 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
after the negotiation required by Article XII, the REINSURER or the CEDING
COMPANY cannot mutually resolve a dispute that arises out of or relates to
this Agreement, the dispute will be decided through arbitration. The
arbitrators will base their decision on the terms and conditions of this
Agreement and, 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 will be no appeal of their written decision, and
any court having jurisdiction of the subject matter and the parties, may
reduce that decision to judgement.
B. To initiate arbitration, either the REINSURER or the CEDING COMPANY will
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 will respond to the notification in writing within ten (10) days of
its receipt.
C. There will be three arbitrators who will be current or former officers of
life insurance companies other than the contracting companies or affiliates
thereof. Each of the contracting companies will appoint one of the
arbitrators and these two arbitrators will select the third. If either
party refuses or neglects to appoint an arbitrator within thirty (30) days,
the other party may appoint the second arbitrator. If the two arbitrators
do not agree on a third arbitrator within thirty (30) days of their
appointment, then the appointment of said arbitrator shall be left to the
President of the American Arbitration Association. Once chosen, the
arbitrators are empowered to decide all substantive and procedural issues
by majority vote.
D. 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 Section A of this Article.
E. The arbitration hearing will be held on the date fixed by the arbitrators
in New York City. In no event will this date be later than three (3) months
after the appointment of the third arbitrator. As soon as possible, the
arbitrators will establish pre-arbitration procedures as warranted by the
facts and issues of the particular case. At least ten (10) days prior to
the arbitration hearing, each party will provide the other party and the
arbitrators with a detailed statement of the facts and arguments they will
present at the arbitration hearing. The arbitrators may consider any
relevant evidence; they will give the evidence such weight as they deem it
entitled to after consideration of any objections raised concerning it.
Each party may examine any witnesses who testify at the arbitration
hearing.
F. The cost of arbitration will be divided between the parties, unless the
arbitrators decide otherwise.
Article XIV
Right to Offset Balances Due
The CEDING COMPANY and the REINSURER shall have, and may exercise at any time,
the right to offset any balance or balances due one party to the other, its
successors or assignees, against balances due to the other party under this
Agreement or under any other Agreements or Contracts previously or subsequently
entered into between the CEDING COMPANY and the REINSURER. This right of offset
shall not be affected or diminished because of the insolvency of either party to
this Agreement.
Article XV
Contract and Program Changes
A. The CEDING COMPANY may amend, substitute, add or delete variable investment
funds to the investment options supporting the annuity contract as
described in the contract general provisions. No such change shall be made
by the CEDING COMPANY without prior notification to the REINSURER and
without the prior approval of the Securities and Exchange Commission (SEC),
if necessary. The CEDING COMPANY agrees to maintain at all times a
satisfactory selection of core investment options with characteristics
similar to those listed in Schedule B.
B. The CEDING COMPANY shall also give the REINSURER advance notice of any
other changes to its annuity product design and/or death benefit design,
its fees and charges, its distribution systems and/or methods, or the
addition of any riders to any contract forms reinsured hereunder.
C. Should any such change as stated above result in a material change in the
underlying risk, the REINSURER shall have the right to modify, for that
product line only, any of the terms of this Agreement in order to restore
the REINSURER to its original position.
D. The CEDING COMPANY agrees to provide the REINSURER with certain
contractholder communications, described below, as though the REINSURER
were a contractholder in the CEDING COMPANY's state of domicile.
1. Contract
2. Informational Mailings
3. Prospectuses
4. Prospectus Supplements
5. Annual Reports
Article XVI
Confidentiality
A. This Agreement incorporates, under Exhibit III, the confidentiality
agreement previously agreed to between the parties on November 10, 1999.
All matters with respect to this Agreement require the utmost good faith of
both parties. Both the CEDING COMPANY and the REINSURER shall hold
confidential and not disclose or make competitive use_ of any shared
proprietary information unless otherwise agreed to in writing, or unless
the information otherwise becomes publicly available, or the disclosure of
which is required for retrocession purposes, or has been mandated by law,
or is duly required by external auditors.
B. The REINSURER will treat all personal policyholder information received
from the CEDING COMPANY as confidential information and will use good faith
efforts to keep such information private and secure, in accordance with the
CEDING COMPANY's commitment to its policyholders and in accordance with
federal and state privacy laws. The CEDING COMPANY recognizes that the
REINSURER may need to share certain information with auditors, regulators
and retrocessionaires in the normal course of conducting business.
Article XVII
Miscellaneous
A. This Agreement shall constitute the entire Agreement between the parties
with respect to business reinsured hereunder. There is no understanding
between the parties other than as expressed in this Agreement and any
change or modification of this Agreement shall be null and void unless made
by Amendment to the Agreement and signed by both parties.
B. Any notice or communication given pursuant to this Reinsurance Agreement
must be in writing and either 1) delivered personally, 2) sent by facsimile
or other similar transmission to a number specified in writing by the
recipient, 3) delivered by overnight express, or 4) sent by Registered or
Certified Mail, Postage Prepaid, Return Receipt Requested, as follows:
If to CEDING COMPANY: Ameritas Variable Life Insurance Company
P. O. Xxx 00000
Xxxxxxx, Xxxxxxxx 00000-0000
Attn: Xxxxxx X. XxXxxxx,
Assistant Vice President & Associate Actuary
If to the REINSURER: AXA Corporate Solutions Life Reinsurance Company
00 Xxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxx Comely, Assistant Vice President
All notices and other communications required or permitted under this
Reinsurance Agreement that are addressed as provided in this Section will
1) if delivered personally or by overnight express, be deemed given upon
delivery; 2) if delivered by facsimile transmission or other similar
transmission, be deemed given when electronically confirmed, and 3) if sent
by Registered or Certified mail, be deemed given when marked Postage
Prepaid by the sender's terminal. Any party from time-to-time may change
its address, but no such notice of change will be deemed to have been given
until it is actually received by the party sought to be charged with the
contents thereof.
C. This Agreement shall be binding to the parties and their respective
successors and permitted assignees. This Agreement may not be assigned by
either party without the written consent of the other.
D. This Agreement is an indemnity reinsurance agreement solely between the
CEDING COMPANY and the REINSURER. The acceptance of reinsurance hereunder
shall not create any right or legal relation whatever between the REINSURER
and the annuitant, owner, beneficiary or any other party under any
contracts of the CEDING COMPANY which may be reinsured hereunder; the
CEDING COMPANY shall be and remain solely liable to such parties under such
contracts reinsured hereunder.
E. All financial transactions under this Agreement shall be made in U. S.
dollars.
Article XVIII
Severability
If any provision of this Agreement is determined to be invalid or unenforceable,
such determination will not affect or impair the validity or the enforceability
of the remaining provisions of this Agreement.
Article X1X
DAC Tax
Treasury Regulation Section 1.848-2(g)(8) Election
The CEDING COMPANY and the REINSURER hereby agree to the following pursuant to
Section 1.848-2(g)(8) of the Income Tax Regulations issued December 29, 1992,
under Section 848 of the Internal Revenue Code 1986, as amended. This election
shall be effective for 1993 and all subsequent taxable years for which this
Agreement remains in effect.
A. The term "party" will refer to either the CEDING COMPANY or the REINSURER
as appropriate.
B. The terms used in this Article are defined by reference to Treasury
Regulations Section 1.848-2 in effect as of December 29, 1992.
C. The party with the net positive consideration for this Agreement for each
taxable year will capitalize specified policy acquisition expenses with
respect to this Agreement without regard to the general deduction
limitation of IRC Section 848(c)(1).
D. Both parties agree to exchange information pertaining to the amount of net
consideration under this Agreement each year to ensure consistency. The
parties also agree to exchange information, which may be otherwise required
by the IRS.
E. The CEDING COMPANY will submit to the REINSURER by April 1st of each year,
a schedule of its calculation of the net consideration for the preceding
calendar year. This schedule will be accompanied by a statement signed by
an officer of the CEDING COMPANY stating that the CEDING COMPANY will
report such net consideration in its tax return for the preceding calendar
year.
F. The REINSURER may contest such calculation by providing an alternate
calculation to the CEDING COMPANY in writing within thirty (30) days of the
REINSURER's receipt of the CEDING COMPANY's calculation. If the REINSURER
does not notify the CEDING COMPANY, the REINSURER will report the net
consideration as determined by the CEDING COMPANY in the REINSURER's tax
return for the previous calendar year.
G. If the REINSURER contests the CEDING COMPANY's calculation of the net
consideration, the parties will act in good faith to reach an agreement as
to the correct amount within thirty (30) days of the date the REINSURER
submits its alternate calculation. If the REINSURER and CEDING COMPANY
reach agreement on an amount of net consideration, each party shall report
such amount in their respective tax returns for the previous calendar year.
Article XX
Duration of Agreement
A. This Agreement shall be unlimited as to its duration but may be reduced or
terminated as provided in this Article, below.
B. This Agreement shall be open for new business for a minimum of two (2)
years as measured from the Effective Date of this Agreement subject to a
limit of the sum of three billion dollars ($3,000,000,000) of total new
considerations to the CEDING COMPANY under this Agreement and to the CEDING
COMPANY's affiliate, Acacia National Life Insurance Company, under
Agreement No. 2001-43, divided by the quota share percentage as described
in Schedule A. Anytime on or after the second anniversary of this
Agreement, and upon one hundred and eighty (180) days written notice, or
anytime on or after attainment of the sum of total new considerations
described in this Paragraph, either the CEDING COMPANY or the REINSURER may
cancel this Agreement for new business unilaterally or amend the terms of
reinsurance for new business by mutual agreement. The facility may be
renewed thereafter, subject to mutually accepted terms.
C. The terms of this Agreement may be altered due to the actual insolvency
(either party is in the liquidation process) of the REINSURER or the CEDING
COMPANY.
Article XXI
Execution of Agreement
This Agreement may be executed by the parties in separate counterparts, each of
which when so executed and delivered shall be an original, but all such
counterparts together shall constitute one and the same instrument. Each
counterpart may consist of a number of copies hereof signed by less than both,
but together signed by both of the parties hereto.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in duplicate by their duly authorized representatives as of January 1,
2001.
AMERITAS VARIABLE LIFE INSURANCE COMPANY
By: Xxxxxx X. XxXxxxx V P Date: 8/21/01
Attest: Xxxxx X. Xxxxxxx V P
AXA CORPORATE SOLUTIONS LIFE REINSURANCE COMPANY
By: Xxxxxxx X. Xxxx, President Date: 19 July 2001
Attest: Xxxxx Xxxxxxx, Assistant Vice President
Schedule A
Plans of Reinsurance
A. Quota Share Percentage: 100%
B. Issue Dates:
New Policies issued on or after January 1, 200
C. GMDB Reinsured:
Optional Enhanced GMDB Benefit 1 for ages 0 70: Maximum (Annual
Step-Up) to attained age 80 MDB frozen thereafter
Note: Withdrawals reduce the death benefit proportionately.
Spousal Continuance
Provided that the CEDING COMPANY can individually identify Spousal
Continuances, as shown in Schedule C, the REINSURER will cover Spousal
Continuances under this Agreement and will treat them as new issues to
the extent that, at time of continuance, the attained age of the
surviving spouse satisfies the issue age restrictions and benefit
limitations under the Related Contracts covered by this Agreement.
D. Related Contracts:
Description Effective Date
E. Retention:
The CEDING COMPANY shall be liable for claims associated with the
excess of Net Considerations over Account Value upon death of the
policyholder. Note: Net considerations is defined as total deposits
less a dollar-for-dollar reduction for any withdrawals.
Schedule B
Investment Funds
--------------------------------------------------------------------------------
Funds Status Changes
--------------------------------------------------------------------------------
XXXXX
American Balanced
American Leveraged AllCap
--------------------------------------------------------------------------------
AMERICAN CENTURY
VP Income & Growth
--------------------------------------------------------------------------------
AMERITAS PORTFOLIOS
Growth (Xxxx Xxxxx)
Income & Growth (Xxxx Xxxxx)
XxxXxx Growth (Xxxx Xxxxx)
Small Capitalization (Xxxx Xxxxx)
Micro Cap (Babson)
Money Market (Xxxxxxx)
Emerging Growth (MFS Co.)
Growth with Income (MFS Co.)
Research (MFS Co.)
Select (Oakmark)
Index 000 (Xxxxx Xxxxxx)
--------------------------------------------------------------------------------
XXXXXXX SOCIAL
Social Balanced
Social International Equity
Social Mid Cap Growth
Social Small Cap Growth
--------------------------------------------------------------------------------
FIDELITY -- SERVICE CLASS 2
VIP Asset Manager
VIP Asset Manager: Growth
VIP Contrafund
VIP Equity-Income
VIP Growth
VIP High Income
VIP Investment Grade Bond
VIP Overseas
--------------------------------------------------------------------------------
INVESCO FUNDS
VIF Dynamics
--------------------------------------------------------------------------------
MFS
Global Governments
New Discovery
Utilities
--------------------------------------------------------------------------------
XXXXXX XXXXXXX
Emerging Markets Equity
Global Equity
International Magnum
U.S. Real Estate
--------------------------------------------------------------------------------
SALOMON BROTHERS
Variable Capital
--------------------------------------------------------------------------------
SUMMIT PINACLE SERIES
Nasdaq-100 Index
Xxxxxxx 2000 Small Cap Index
S & P Mid Cap 400 Index
--------------------------------------------------------------------------------
THIRD AVENUE
Third Avenue Value
--------------------------------------------------------------------------------
Ameritas Variable Life Agreement No.
2001-36-DB Effective January 1, 2001
Schedule C
Required Data and Suggested Data Layout
Annuitant's ID:
Sex Last Name
Date of Birth First Name
Social Security No. / Social Insurance No. Middle Name
M or F
YYYYMMDD
Joint Annuitant's ID: Last Name If Applicable
Sex First Name
Date of Birth Middle Name
Social Security No. / Social Insurance No. M or F
YYYYMMDD
Owner's ID: Last Name
Sex First Name
Date of Birth Middle Name
Social Security No. / Social Insurance No. M or F
YYYYMMDD
Joint Owner's ID: Last Name If Applicable
Sex First Name
Date of Birth Middle Name
Social Security No. / Social Insurance No. M or F
YYYYMMDD
Policy Number YYYYMMDD
Policy Issue Date NI = True New Issue, SC = Spousal Continuance, EX = 1035
Policy Issue Status Exchange Qualified (Q),or Non-qualified (N)
Tax Status
GMDB/EEB SECTION (If applicable)
GMIB Election (I), Other (0). If applicable. Use your Cause of Death code, and
provide translation
For reconciliation purposes (may be paper summary) Monthly
aggregate information by GMIB Design, GMAB Design, and Pricing Cohort (If
applicable) Monthly aggregate information by GMIB Design, GMAB Design, and
Pricing Cohort (if applicable)
Ameritas Variable Life Agreement No.
2001-36-DB Effective January 1, 2001
Exhibit I
Reinsurance Premiums
GMDB Rider Design Issue Ages Current Reinsurance Premiums Guaranteed Maximum
-------------------------------------------------------------------------------------------------------------------
Annual Step-Up 0 -- 70 Flat Max
22.75 47.50
-------------------------------------------------------------------------------------------------------------------
*The current premium rate shall be in effect for a minimum of twenty (20) years
from the Effective Date of this Reinsurance Agreement. Thereafter, it may be
increased based on expected experience but not beyond the stated guaranteed
maximum rate shown.
Exhibit II
Benefit Limitation Rule
Trapezoidal Rule
Average Aggregate Account Value inforce in calendar year Z equals:
AV (Jan, )
00
XX (Xxx,) + AV (Mar,) + AV (Apr,) + AV (May, )
+
12
AV(Jun,)+AV(Ju1,)+AV(Aug,)+AV(Sep,)
+
12
AV(Oct,)+AV(Nova )+AV(Dec,)
+
12
AV (Dec., )
24
where AV(MonthB) is equal to the beginning of month aggregate account value of
the Related Contracts listed in Schedule A and AV(Month5) is equal to the end of
month aggregate account value of the Related Contracts listed in Schedule A.
For partial calendar years AV(Monthb) for months prior to the Effective Date of
this Reinsurance Agreement or for months subsequent to the termination of all
business hereunder, should be set equal to zero. Note: The Account Value
represents the sum of such values under this Agreement and Agreement No. 2001-43
between the REINSURER and the CEDING COMPANY's affiliate, Acacia National Life
Insurance Company.
Exhibit III
Confidentiality and Non-Disclosure Agreement
CONFIDENTIALITY AND NON-DISCLOSURE AGREEMENT
This Confidentiality and Non-Disclosure Agreement ("Agreement') is made as of 10
November, 1999 by and between AXA Re Life Insurance Company ("AXA Re"), a life
insurance company organized and existing under the laws of the State of
Delaware, and Ameritas Life Insurance Corporation ("Company"), a corporation
organized and existing under the laws of the State of Nebraska.
WHEREAS, the parties hereto intend to disclose, both orally and in writing,
certain confidential and proprietary information ("Confidential Information") to
each other, and to the designated Affiliates and representatives of each other
(including any consultants, third party contractors, actuaries, economists, or
their employers), in furtherance of evaluating the possibility of entering into
a reinsurance program between AXA Re and the Company covering various guaranteed
benefits within new and/or inforce variable annuity and/or variable life
contracts that incorporate Company Confidential Information; and WHEREAS, the
parties wish to protect certain Confidential Information which may be disclosed
between them, particularly regarding AXA Re's program for reinsuring variable
annuity contracts. NOW THEREFORE, in consideration of the foregoing, and other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto acknowledge and agree that the Confidential
Information disclosed hereunder is confidential, proprietary and trade secret to
the disclosing party and is disclosed to the receiving party on a confidential
basis under this Agreement, to be used only as expressly permitted by the terms
and conditions of this Agreement. Title to the Confidential Information will
remain at all times in the disclosing party and no transfer of any interest is
either expressly granted or implied.
CONFIDENTIAL INFORMATION
As used in this Agreement, the term "Confidential Information" includes but is
not limited to the following items, whether existing now or created in the
future: (a) all knowledge or information concerning the business, operations and
assets of the parties hereto and their respective Subsidiaries and Affiliates
which is not readily available to the public, such as: internal operating
procedures; investment strategies; sales data and customer lists; financial
plans, projections and reports; and insurance and investment company programs,
plans and products; (b) all property owned, licensed and/or developed by or for
the parties, their Subsidiaries or Affiliates or their respective clients and
not readily available to the public, such as computer systems, programs,
software and devices, plus information about the design, methodology and
documentation therefore (c) information, materials, products or any other
tangible or intangible assets in the possession or the control of the parties or
their Subsidiaries or Affiliates which is proprietary to, or confidential to or
about, any other person or entity; (d) proprietary or confidential information
obtained from persons or entities conducting business with the parties or their
Subsidiaries or Affiliates in any capacity; and (e) records and repositories of
all of the foregoing, in whatever form maintained.
This shall not limit the generality of the foregoing: (a) Confidential
Information of AXA Re shall include, without limitation, all information with
respect to AXA Re's program for reinsuring variable annuities and/or variable
life insurance, any actuarial, pricing and financial information provided by AXA
Re or its Affiliated companies to the Company, and all information conveyed
orally or by any other means by AXA Re or its Affiliated companies to the
Company, with respect to reinsurance of variable annuities and/or variable life
insurance; and (b) Confidential Information of the Company shall include,
without limitation, all information with respect to its variable annuity and/or
variable life contract, any actuarial, pricing and financial information
provided by the Company or its Affiliated companies to AXA Re, the Company
annuity pricing model, and all information conveyed orally or by any other means
by the Company or its Affiliated companies to AXA Re, with respect to Company
variable annuity and/or variable life insurance programs.
Failure to xxxx any material or information "Confidential" shall not affect the
confidential nature thereof. The restrictions against disclosing and
disseminating the Confidential Information shall not apply to:
i. general skills and experience gained by employees of either party,
their Subsidiaries or their Affiliates; or
ii. information known by the receiving party prior to disclosure under
this Agreement; or
iii. information disclosed to the receiving party by a third party who was
not under an obligation of confidentiality to the disclosing party; or
iv. information which is publicly available or generally known within the
insurance or data processing industries; or
v. information which is independently developed by the receiving party
prior to, concurrent with or
subsequent to the disclosing party's disclosure without any wrongful
act or breach of this Agreement by the receiving party; or
vi. information which becomes available to one party, its Subsidiaries,
its Affiliates or Its representatives on a non-confidential basis from
sources other than the other party or its Subsidiaries, Affiliates or
representatives, provided that the recipient of such information does
not know or have reason to know that such sources are prohibited by
contractual, legal or fiduciary obligation from transmitting the
information.
The foregoing notwithstanding, nothing in this Agreement shall be construed to
prohibit the disclosure of Confidential Information in accordance with the terms
of a court order. In the event one of the parties, or their representatives
becomes legally compelled to disclose the Confidential Information of the other,
the party being compelled shall refrain from providing such Confidential
Information for seven days (or such shorter period as permitted by court order),
and shall provide prompt and reasonable notice to the other party, so that the
other party may seek a protective order, an appeal, or other appropriate remedy.
If any party having been advised in writing of the requirement to disclose
Confidential Information, fails within five days of receiving such notice to
obtain a restraining order preventing such disclosure, they will be assumed to
have waived their rights to prevent such disclosure under this Agreement. The
disclosing party may rely on opinion of counsel as to whether information is or
is not subject to disclosure under the court order.
BREACH
The parties hereto recognize that the unauthorized disclosure, duplication,
reproduction or use of the Confidential Information would cause irreparable harm
to the disclosing party and that monetary damages will be inadequate to
compensate the disclosing party for such breach. For that reason, the parties
hereto shall be entitled to seek, in any court of competent jurisdiction,
injunctive relief including a preliminary injunction and an order of seizure and
impoundment under Section 503 of the Copyright Act and the receiving party will
not object to the entry of an injunction or other equitable relief against it on
the basis of an adequate remedy at law or other reason. Such relief shall be
cumulative and in addition to whatever other remedies the disclosing party may
have.
MISCELLANEOUS
(a) No waiver of any provision of this Agreement shall be effective unless
contained in a writing executed by the party against whom enforcement
thereof is sought. A waiver of any specific term hereof shall not be deemed
to constitute a waiver of any other term hereof, nor shall a waiver on any
one or more occasions be deemed to imply or constitute a waiver of the same
of any other term on any other occasion.
(b) If any part of this Agreement shall be held to be void or unenforceable,
such part shall be treated as severable, leaving valid the remainder of the
Agreement.
(c) Anything in this Agreement to the contrary notwithstanding, nothing herein
shall be construed as a commitment by either party to enter into a
Reinsurance Agreement or to engage in anything beyond having initial
discussions and exchanging information which may lead to a formal request
for a reinsurance proposal and subsequent preparation thereof.
(d) Each of the parties shall cause its respective Subsidiaries and Affiliates
to abide by the terms of this Agreement, and in the event of a violation of
this Agreement by their respective Subsidiaries or Affiliates, shall be
liable hereunder to the same extent as if, themselves, had committed such
violation.
(e) For purposes of this Agreement:
(i) "Affiliate" shall mean a person that directly, or indirectly through
one or more intermediaries, controls, is controlled by or is under
common control with another person or beneficially owns or has the
power to vote or direct the vote of twenty-five percent (25%) or more
of any class of voting stock (or of any form of voting equity interest
in the case of a person that is not a corporation) of such other
person. For purposes of this definition, "control", including the
terms "controlling" and "controlled", means the power to direct or
cause the direction of the management and policies of a person,
directly or indirectly, whether through the ownership of securities or
partnership or other ownership interests, by contract or otherwise.
(ii) "Subsidiary" of a person means any person with respect to whom such
specified person, directly or indirectly, beneficially owns fifty
percent (50%) or more of the equity interests in, or holds the voting
control of fifty percent (50%) to more of the equity interests in,
such person,
(f) Upon the written request of AXA Re at any time, the Company will return to
AXA Re all AXA Re Confidential Information, provided that if AXA Re enters
into a reinsurance agreement with the Company, that
the Company shall be entitled to retain AXA Re Confidential Information
required by the Company in order to fulfill its obligations under the
reinsurance agreement (but that any such Confidential Information shall not
be used for any other purpose).
(g) Upon the written request of the Company at any time, AXA Re will return to
the Company all Company Confidential Information, provided that if AXA Re
enters into a reinsurance agreement with the Company, that AXA Re shall be
entitled to retain Company Confidential Information required by AXA Re in
order to fulfill its obligations under the reinsurance agreement (but that
any such Confidential Information shall not be used for any other purpose).
(h) Nothing in this agreement shall prevent the Company and AXA Re from
developing reinsurance products, or limit their respective rights to
develop reinsurance products, provided the Company does not use AXA Re
Confidential Information and AXA Re does not use Company Confidential
Information in connection with the development of such products.
COMMENCEMENT AND TERMINATION OF AGREEMENT
This Agreement is effective upon the date first written above. The
obligations of each party set out in the preceding paragraphs above shall
survive the termination of the Agreement. Notwithstanding anything in this
Agreement to the contrary, each party agrees that any agreement executed
between them as a result of these discussions shall incorporate the
confidentiality provisions contained herein, and this Agreement shall be
deemed to continue in full force and effect during all terms of such
subsequent agreement.
GENERAL PROVISIONS
This Agreement shall be governed by and construed, and the legal relations
between the parties shall be determined, in accordance with the laws of the
State of Delaware without giving effect to the principles of conflicts of
laws. This Agreement supersedes all prior understandings and negotiations,
oral and written, and constitutes the entire understanding between the
parties on this subject. This Agreement and any of the rights or
obligations hereunder are not assignable by either party without the other
party's prior written permission. No waiver, modification, or amendment to
the Agreement shall be binding upon the parties unless it is in writing
signed by an Authorized Representative of the party against whom
enforcement is sought
IN WITNESS THEREOF, the parties by their duly Authorized Representatives have
caused this Agreement to be executed as of the date first written above.
AXA RE LIFE INSURANCE COMPANY AMERITAS LIFE INSURANCE CORPORATION
By: Xxx Xxxxxxx By: Xxxxxx Xxxxx
Title: Vice President Title: AVP and Associate Actuary
Date: 10 November, 1999 Date: November, 1999
A
CORPORATE
SOLUTIONS
o Acacia
10% "Free" Withdrawal Feature -- Form FPW 8901 Expanded Free Partial Withdrawal
Feature -- Form FPW 8902 Optional Withdrawal Charge Period Features
o Ameritas
5-Year Withdrawal Charge -- Form 5WCP 4901 7-Year Withdrawal Charge -- Form 7WCP
4902
o Acacia
5-Year Withdrawal Charge -- Form 5WCP 8901 7-Year Withdrawal Charge -- Form 7WCP
8902 Optional Minimum Initial Premium Features
o Ameritas -
Minimum Initial Premium of $2,000 -- Form MP 4901
o Ameritas - Minimum
Initial Premium of $2,000 -- Form MP 8901
Window of Opportunity for lnforce Elections
o Contracts issued on or after January 1, 2001 through April 30, 2001 and still
inforce at time of the effective date of this amendment will have the option to:
Elect a GMDB rider within 60 days from the effective date of this amendment, or
60 days from the date of state approval, beginning May 1, 2001 and ending no
later than August 31, 2001.
- Elect a new Optional Feature within 120 days from the effective date of this
amendment, or 120 days from the date of state approval, beginning May 1, 2001
and ending no later than October 31, 2001.
EFFECTIVE DATE OF AMENDMENT
o May 1,2001
METHOD /MODE
o Automatic reinsurance for a quota share of the mortality net amount at risk
for contracts issued on or after effective date of this amendment, May 1, 2001.
o Automatic reinsurance for a quota share of the mortality net amount at risk
for contracts issued on or after January 1, 2001 through April 30, 2001 electing
a GMDB rider or a new Optional Feature listed above under Related Contracts and
consistent with the window of opportunity stated above under Related Contracts.
QUOTA SHARE
o 100%, subject to benefit limitations mentioned below
RETENTION
o The Company shall be liable for claims associated with the excess of Net
Considerations over account value on death of the policyholder.
o Net considerations is defined as total deposits less a dollar for dollar
reduction for any withdrawals.
MORTALITY NET AMOUNT AT RISK (MNAR)
o MNAR = (VNAR + SCNAR) where:
o VNAR = Max ( a , b ) * (Quota Share Percentage) where:
a = (Contractual Rider Death Benefit--Max (Net Considerations, Account Value)
b=0
o SCNAR = (Surrender Charges) * (Quota Share Percentage)
REINSURANCE PREMIUMS
o The reinsurance premiums are flat asset-based premium rates, which are
applied to the average aggregate account value over the reporting period
inforce multiplied b\' the quota share percentage reinsured by AXA. The
reporting period is monthly.
o The annualized reinsurance premium rates, which vary by GMDB rider only,
are shown in Exhibit 1 and are expressed in terms of basis points. In
practice, they shall be applied on a monthly basis by utilizing 1/12th of
the annualized rate.
o There will be a true-up of reinsurance premiums for inforce contracts
electing a GMDB rider if the Company determines that, for administrative
purposes, the GMDB rider will go into effect as of the date of issue. If
the GMDB rider goes into effect on the date of election, there will be no
true-up of reinsurance premiums.
o The minimum total reinsurance premium due each month will be as stated in
Treaty 2000-36. o
CORPORATE SOLUTIONS
TREATY RESERVE
o The reserves held by AXA in its statutory financial statements will be as
stated in Treaty 2000-36.
REINSURANCE BENEFITS o As stated in Treaty 2000-36.
BENEFIT LIMITATIONS
o As stated in Treaty 2000-36.
RECAPTURE
o As stated per Treaty 2000-36.
DURATION OF REINSURANCE FACILITY
o As stated per Treaty 2000-36.
DURATION OF COVERAGE
o The reinsurance ceded to AXA may be continued indefinitely at the option of
the Company.
TERMINATION OF LIABILITY o As stated per Treaty 2000-36.
POLICY CHANGES
o As stated in Treaty 2000-36.
ADMINISTRATION
o As stated in Treaty 2000-36.
EXPIRY OF PROPOSAL
o May 10, 2001
CORPORATE SOLUTIONS
Proprietary Reinsurance Specifications for the Company
EXHIBIT 1
REINSURANCE PREMIUMS
------------------------------------------------------------------------------------------------------------------
GMDB Rider Current Reinsurance Guaranteed
Annual Step-Up Premium Reinsurance Premium
------------------------------------------------------------------------------------------------------------------
;Issue Ages Flat Max
0-70 22.75 / 47.50
------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------
GMDB Rider Current Reinsurance Guaranteed
5% Roll-Up Premium Reinsurance Premium
------------------------------------------------------------------------------------------------------------------
Issue Ages ! Flat Max
GMDB 0-70 31.50 ? 65.00
------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------
GMDB Rider Current Reinsurance Guaranteed
Max(Annual Step-Up, Premium Reinsurance Premium
5% Roll-Up)
------------------------------------------------------------------------------------------------------------------
Issue Ages Flat Max
GMDB 0-70 33.00 / 68.00
------------------------------------------------------------------------------------------------------------------
*The current premium rate shall be in effect for a minimum of 20 years from the
effective date of this reinsurance agreement. Thereafter, it may be increased
based on expected experience but not beyond the stated guaranteed maximum rates
shown.
CORPORATE SOLUTIONS
Proprietary Reinsurance Specifications for the Company
EXHIBIT 2
BENEFIT LIMITATION RULES
Trapezoidal Rule
Average Aggregate Account Value inforce in calendar year Z equals:
AV(Jan)
24
AV(Feb9)+AV(Mar5)+AV(Apra)+AV(Maya) + 12
AV(Juns) + AV (JuIB) + AV (AugB) + AV (Sept) + 12
A V(OctB) + AV(NovB) + AV (DecB) +
12
AV(Decr)
24
where AV(Month9) is equal to the beginning of month aggregate account value of
the Related Contracts listed above and AVIMonthE 1 is equal to the end of month
aggregate account value of the Related Contracts reinsured under Treaty 2000-36.
For partial calendar years AVIMonths 1 for months prior to the Effective Date of
treaty should be set equal to zero.
Amendment No. 1 to
Automatic Reinsurance Agreement No. 2001-36, Dated January 1, 2001
between
AMERITAS VARIABLE LIFE INSURANCE COMPANY
(CEDING COMPANY)
and
AXA CORPORATE SOLUTIONS LIFE REINSURANCE COMPANY
(REINSURER)
Effective May 1, 2001, this Amendment is hereby attached to and becomes a part
of the above-described Reinsurance Agreement. It is mutually agreed that: GMDB
reinsurance coverage hereunder is hereby expanded to add the Optional Enhanced
Death Benefits (GMDB Riders) as described in the revised treaty provisions
referenced below.
o Article V, Reinsurance Premiums, is replaced by the attached Article V, to
describe the true-up of reinsurance premiums that will occur for certain
GMDB Rider elections on inforce contracts.
o Schedule A, Plans of Reinsurance, is replaced by the attached Schedule A,
to describe the additional benefits reinsured, the policy forms covered
and the timeframe open for GMDB Rider elections to inforce contracts.
o Exhibit I, Reinsurance Premiums, is replaced by the attached Exhibit I, to
set forth the reinsurance premiums for the reinsured benefits.
This Amendment does not alter, amend or modify the Reinsurance Agreement other
than as set forth in this Amendment, and it is subject otherwise to all the
terms and conditions of the Reinsurance Agreement together with all Amendments
and supplements thereto.
AMERITAS VARIABLE LIFE INSURANCE COMPANY
By: Xxxxxx X. XxXxxxx V P
Attest: Xxxxx X. Xxxxxxx V P
AXA CORPORATE SOLUTIONS LIFE REINSURANCE COMPANY
By: Xxxxxxx X. Xxxx, President
Attest: Xxxxx Xxxxxxx, Assistant Vice President
Ameritas Agreement No. 2001-36, Effective January 1, 2001
Amendment No. 1, Effective May 1, 2001
Article V
Reinsurance Premiums
A. The reinsurance premium rate is a flat asset-based premium rate which is
applied to the average aggregate account value in force over the reporting
period multiplied by the quota share percentage reinsured by the REINSURER.
The reporting period is monthly.
B. The annualized reinsurance premium rates are shown in Exhibit I and vary by
variable annuity contract type. The rates are expressed in terms of basis
points. In practice, they shall be applied on a monthly basis by utilizing
one-twelfth (1/12t)-bf the annualized rates.
C. The total reinsurance premium due and payable in the first month shall at
least equal one thousand dollars ($1,000). Thereafter, the minimum
reinsurance premium that is due and payable shall increase by eight hundred
dollars ($800) for each month after the first month until it reaches five
thousand dollars ($5,000) six months after the Effective Date of this
Agreement. The total reinsurance premium that is due and payable in any
month thereafter shall at least be five thousand dollars ($5,000). The
minimum reinsurance premium applies in aggregate to the business reinsured
with the REINSURER by the CEDING COMPANY under this Agreement and by the
CEDING COMPANY's affiliates, First Ameritas Life Insurance Corporation of
New York and Acacia National Life Insurance Company, under the Agreements
known as No. 2001-38 and No. 2001-43, respectively. D. For Spousal
Continuances, reinsurance premium rates shall apply as described in this
Article V. Should these rates be age-based then the new reinsurance premium
rate for spousal continuances shall be based off the attained age of the
surviving spouse at the time of election of spousal continuance. After the
new business facility expires, as described under Article XX, the REINSURER
reserves the right to declare new rates.
E. The reinsurance premium structure described above shall remain in effect as
long as the death benefit design, contract fees, mortality and expense
charges, administration fees and surrender charges in effect at the
inception of this Agreement remain unchanged.
F. In the event that a GMDB Rider covered under the terms of this Agreement is
elected after the issue date of a contract, in accordance with the terms
set forth under Paragraph F of Schedule A, and the GMDB Rider goes into
effect as of the original issue date of the contract instead of as of the
election date of the GMDB Rider, then a true-up of reinsurance premiums
will be due. If the GMDB Rider goes into effect on the date of its
election, there will be no true-up of reinsurance premiums.
Ameritas Agreement No. 2001-36, Effective
January 1, 2001 Amendment No. 1, Effective
May 1, 2001
Schedule A
Plans of Reinsurance
A. Quota Share Percentage: 100%
B. Issue Dates:
New Policies issued on or after January 1, 2001. See Paragraph D below
for coverages coming into effect thereafter, and Paragraph F for
Inforce Elections.
C. GMDB Rider Reinsured:
|X| Optional Enhanced GMDB Benefit I for issue ages 0 - 70: Maximum
Anniversary Value (Annual Step-Up) to attained age 80; GMDB frozen
thereafter.
|X| Optional Enhanced GMDB Benefit 2 for issue ages 0 - 70: 5% Roll-up to
attained age 80 subject to 200% of net considerations; GMDB frozen
thereafter.
|X| Optional Enhanced GMDB Benefit 3 for issue ages 0 - 70: Greater of
Optional Enhanced GMDB 1 and Optional Enhanced GMDB 2.
Note: For all GMDB coverages, withdrawals reduce the death benefit
proportionately.
Spousal Continuance
Provided that the CEDING COMPANY can individually identify Spousal
Continuances, as shown in Schedule C, the REINSURER will cover Spousal
Continuances under this Agreement and will treat them as new issues to
the extent that, at time of continuance, the attained age of the
surviving spouse satisfies the issue age restrictions and benefit
limitations under the Related Contracts covered by this Agreement.
. Related Contracts:
GMDB 4902 Optional Enhanced GMDB Benefit 1 January 1,2001
------------------------------------------------------------------------------------------
GMDB 4903 Optional Enhanced GMDB Benefit 2 May 1,2001
------------------------------------------------------------------------------------------
GMDB 4904 Optional Enhanced GMDB Benefit 3 May 1,2001
------------------------------------------------------------------------------------------
FPW 4901 10% Free Withdrawal Feature May 1,2001
------------------------------------------------------------------------------------------
FPW 4902 Expanded Free Partial Withdrawal Feature May 1,2001
------------------------------------------------------------------------------------------
5WCP 4901 5-Year Withdrawal Charge May 1,2001
------------------------------------------------------------------------------------------
7WCP 4902 7-Year Withdrawal Charge May 1,2001
------------------------------------------------------------------------------------------
MP 4901 Minimum Initial Premium of $2,000 May 1,2001
E. Retention: The CEDING COMPANY shall be liable for claims associated with
the excess of Net Considerations over Account Value upon death of the
policyholder. Note: Net considerations is defined as total deposits less a
dollar-for-dollar reduction for any withdrawals.
F. Window of Opportunity for Inforce Elections
Contracts issued on or after January 1, 2001 through April 30, 2001 that
were reinsured under the terms of this Agreement and that are still in
force as of the effective date of this Amendment will have the option to:
1. Elect a GMDB Rider within sixty (60) days from the effective date of
this Amendment, or sixty (60) days from the date of state approval,
beginning May 1, 2001 and ending no later than September 30, 2001.
2. Elect a new Optional Feature within one hundred and twenty (120) days
from the effective date of this Amendment, or one hundred and twenty
(120) days from the date of state approval, beginning May 1, 2001 and
ending no later than October 31, 2001.
Ameritas Agreement No. 2001-36, Effective
January 1, 2001 Amendment No. 1, Effective
May 1, 2001
Exhibit I
Reinsurance Premiums
Reinsurance Issue Age Current Reinsurance _ Guaranteed Maximum
-------------------------------------------------------------------------------------------------------------------
Benefit 1 0 -- 70 Flat Max
Annual Step-Up 22.75 47.50
-------------------------------------------------------------------------------------------------------------------
Benefit 2 0 -- 70 Flat Max
5% Roll Up 31.50 65.00
-------------------------------------------------------------------------------------------------------------------
Benefit 3 0 -- 70 Flat Max
Max (Annual Step-Up,
5% Roll Up) 33.00 68.00
-------------------------------------------------------------------------------------------------------------------
*The current premium rate shall be in effect for a minimum of twenty (20) years
from the Effective Date of this Reinsurance Agreement. Thereafter, it may be
increased based on expected experience but not beyond the stated guaranteed
maximum rate shown.
Schedule A
Amendment No. 2 to
Automatic Reinsurance Agreement No. 2001-36, Dated January 1, 2001
between
AMERITAS VARIABLE LIFE INSURANCE COMPANY
(CEDING COMPANY)
and
AXA CORPORATE SOLUTIONS LIFE REINSURANCE COMPANY
(REINSURER)
Effective as noted below, this Amendment is hereby attached to and becomes a
part of the above-described Reinsurance Agreement. It is mutually agreed that:
Schedule A, Plans of Reinsurance, is replaced by the attached Schedule A,
effective January 15, 2002, to document the addition of 403(b) policy forms
and riders as covered business hereunder.
Schedule B, Investment Funds, is replaced by the attached Schedule B,
effective November 1, 2001, to document the replacement of a sub-advisor,
as shown.
This Amendment does not alter, amend or modify the Reinsurance Agreement other
than as set forth in this Amendment, and it is subject otherwise to all the
terms and conditions of the Reinsurance Agreement together with all Amendments
and supplements thereto.
Plans of Reinsurance
A. Quota Share Percentage: 100%
B. Issue Dates:
New Policies issued on or after January 1, 2001. See Paragraph D below
for coverages coming into effect thereafter, and Paragraph F for
Inforce Elections,
C. GMDB Rider Reinsured:
o Optional Enhanced GMDB Benefit 1 for issue ages 0 - 70: Maximum
Anniversary Value (Annual Step-Up) .to attained age 80; GMDB frozen
thereafter.
o Optional Enhanced GMDB Benefit 2 for issue ages 0 - 70: 5% Roll-up to
attained age 80 subject to 200% of net considerations; GMDB frozen
thereafter.
o Optional Enhanced GMDB Benefit 3 for issue ages 0 - 70: Greater of
Optional Enhanced GMDB 1 and Optional Enhanced GMDB 2.
Note: For all GMDB coverages, withdrawals reduce the death benefit
proportionately. Spousal Continuance
Provided that the CEDING COMPANY can individually identify Spousal
Continuances, as shown in Schedule C, the REINSURER will cover Spousal
Continuances under this Agreement and will treat them as new issues to the
extent that, at time of continuance, the attained age of the surviving
spouse satisfies the issue age restrictions and benefit limitations under
the Related Contracts covered by this Agreement.
AMERITAS VARIABLE LIFE INSURANCE COMPANY
By: Xxxxxxx X. Xxxxxxx V P Date: 4/1/02
Attest: Xxxxx X. Xxxxxxx V P
AXA CORPORATE SOLUTIONS LIFE REINSURANCE COMPANY
By: Xxxxxxx X. Xxxx, President Date: 25 March 2002
By: Xxxxx X Xxxxxx, Assistant Vice President
Attest: Xxxxx Xxxxxxx, Assistant Vice President
Continued on next page...
Ameritas Agreement No. 2001-36, Effective January 1,
2001 Amendment No. 2
Schedule A
Plans of Reinsurance
(continued)
D. Related Contracts:
---------------------------------------------------------------------------------------------------------------
Form No. Description Effective Date
1py 1lnburidfed.`Yaria~Zle Annuity .~ahUary'1, 200.1.'
---------------------------------------------------------------------------------------------------------------
GMDB 4902 Optional Enhanced GMDB Benefit 1 January 1, 2001
---------------------------------------------------------------------------------------------------------------
GMDB 4903 Optional Enhanced GMDB Benefit 2 May 1, 2001
---------------------------------------------------------------------------------------------------------------
GMDB 4904 Optional Enhanced GMDB Benefit 3 May 1, 2001
---------------------------------------------------------------------------------------------------------------
FPW 4901 10% Free Withdrawal Feature May 1, 2001
---------------------------------------------------------------------------------------------------------------
FPW 4902 Expanded Free Partial Withdrawal Feature May 1,2001
---------------------------------------------------------------------------------------------------------------
5WCP 4901 5-Year Withdrawal Charge May 1, 2001
---------------------------------------------------------------------------------------------------------------
7WCP 4902 7-Year Withdrawal Charge May 1, 2001
---------------------------------------------------------------------------------------------------------------
MP 4901 Minimum Initial Premium of $2,000 May 1, 2001
---------------------------------------------------------------------------------------------------------------
TSA-V Ed.1-02 403W) Tax Sheltered Annuity Endorsement January 15, 2002
---------------------------------------------------------------------------------------------------------------
HDW 4901 TSA Hardship Waiver Rider January 15, 2002
---------------------------------------------------------------------------------------------------------------
WCP 4903 TSA No Withdrawal Charge Rider (= >- $25K) January 15, 2002
---------------------------------------------------------------------------------------------------------------
WCP 4904 TSA No Withdrawal Charge Rider (<-$25K) January 15, 2002
---------------------------------------------------------------------------------------------------------------
MP 4902 TSA Minimum Premium Rider January 15, 2002
---------------------------------------------------------------------------------------------------------------
E. Retention:
The CEDING COMPANY shall be liable for claims associated with the
excess of Net Considerations over Account Value upon death of the
policyholder.
Note: Net considerations is defined as total deposits less a
dollar-for-dollar reduction for any withdrawals.
F. Window of Opportunity for Inforce Elections
Contracts issued on or after January 1, 2001 through April 30, 2001
that were reinsured under the terms of this Agreement and that are
still in force as of the effective date of this Amendment will have
the option to:
1. Elect a GMDB Rider within sixty (60) days from the effective date of
this Amendment, or sixty (60) days from the date of state approval,
beginning May 1, 2001 and ending no later than September 30, 2001.
2. Elect a new Optional Feature within one hundred and twenty (120) days
from the effective date of this Amendment, or one hundred and twenty
(120) days from the date of state approval, beginning May 1, 2001 and
ending no later than October 31, 2001.
Ameritas Agreement No. 2001-36, Effective January 1,
2001 Amendment No. 2
Schedule B
Investment Funds
------------------------------------------------------------------------------------------------------------------------
Funds Status Changes
------------------------------------------------------------------------------------------------------------------------
XXXXX
American Balanced
American Leveraged AllCap
------------------------------------------------------------------------------------------------------------------------
AMERICAN CENTURY
VP Income & Growth
------------------------------------------------------------------------------------------------------------------------
AMERITAS PORTFOLIOS
Growth (Xxxx Xxxxx) Subadvisor replaced November 1, 2001
Income & Growth (Xxxx Xxxxx)
MidCap Growth (Xxxx Xxxxx)
Small Capitalization (XxXxxx -- formerly Xxxx
Xxxxx) Micro Cap (Babson) Money Market (Xxxxxxx) Emerging Growth (MFS Co.)
Growth with Income (MFS Co.)
Research (MFS Co.)
Select (Oakmark)
Index 000 (Xxxxx Xxxxxx)
------------------------------------------------------------------------------------------------------------------------
XXXXXXX SOCIAL
Social Balanced
Social International Equity
Social Mid Cap Growth
Social Small Cap Growth
------------------------------------------------------------------------------------------------------------------------
FIDELITY -- SERVICE CLASS 2
VIP Asset Manager
VIP Asset Manager: Growth
VIP Contrafund
VIP Equity-Income
VIP Growth
VIP High Income
VIP Investment Grade Bond
VIP Overseas
------------------------------------------------------------------------------------------------------------------------
INVESCO FUNDS
VIF Dynamics
------------------------------------------------------------------------------------------------------------------------
MFS
Global Governments
New Discovery
Utilities
------------------------------------------------------------------------------------------------------------------------
XXXXXX XXXXXXX
Emerging Markets Equity
Global Equity
International Magnum
U.S. Real Estate
------------------------------------------------------------------------------------------------------------------------
SALOMON BROTHERS
Variable Capital
------------------------------------------------------------------------------------------------------------------------
SUMMIT PINACLE SERIES
Nasdaq-100 Index
Xxxxxxx 2000 Small Cap Index
S & P Mid Cap 400 Index
------------------------------------------------------------------------------------------------------------------------
THIRD AVENUE
Third Avenue Value
------------------------------------------------------------------------------------------------------------------------
Ameritas Agreement No. 2001-36, Effective January 1,
2001 Amendment Xx. 0
Xxxxxxxxx Xx. 0 to
Automatic Reinsurance Agreement No. 2001-36, Dated January 1, 2001
between
AMERITAS VARIABLE LIFE INSURANCE COMPANY
(CEDING COMPANY)
and
AXA CORPORATE SOLUTIONS LIFE REINSURANCE COMPANY
(REINSURER)
Effective as noted below, this Amendment is hereby attached to and becomes a
part of the above-described Reinsurance Agreement. It is mutually agreed that: |
Schedule B, Investment Funds, is replaced by the attached revised Schedule B, to
document fund additions and/or revisions as of the dates shown.
This Amendment does not alter, amend or modify the Reinsurance Agreement other
than as set forth in this Amendment, and it is subject otherwise to all the
terms and conditions of the Reinsurance Agreement together with all Amendments
and supplements thereto.
AMERITAS VARIABLE LIFE INSURANCE COMPANY
By: Xxxxxxx X. Xxxxxxx V P Date: 8/16/02
Attest: Xxxxxx X. Xxxxx V P
AXA CORPORATE SOLUTIONS LIFE REINSURANCE COMPANY
By: Xxxxxxx X. Xxxx, President Date: 05 August 2002
By: Xxxxx X Xxxxxx, Assistant Vice President
Attest: Xxxxx Xxxxxxx, Assistant Vice President
Schedule B
Investment Funds
----------------------------------------------------------------------------------------------------
Funds Status Changes
----------------------------------------------------------------------------------------------------
XXXXX
American Balanced
American Leveraged AllCap
----------------------------------------------------------------------------------------------------
AMERICAN CENTURY
VP Income & Growth
----------------------------------------------------------------------------------------------------
AMERITAS PORTFOLIOS
Growth (Xxxx Xxxxx) Subadvisor replaced November 1, 2001
Income & Growth (Xxxx Xxxxx) Added November 1, 2002
MidCap Growth (Xxxx Xxxxx)
Small Capitalization (XxXxxx -- formerly
Xxxx Xxxxx)
Micro Cap (Babson) Money Market (Xxxxxxx)
Emerging Growth (MFS Co.)
Growth with Income (MFS Co.)
Research (MFS Co.)
Select (Oakmark)
Index 000 (Xxxxx Xxxxxx)
Xxxxxxx MidCap Stock
----------------------------------------------------------------------------------------------------
XXXXXXX SOCIAL
Social Balanced
Social International Equity
Social Mid Cap Growth
Social Small Cap Growth
----------------------------------------------------------------------------------------------------
FIDELITY -- SERVICE CLASS 2
VIP Asset Manager
VIP Asset Manager: Growth
VIP Contrafund
VIP Equity-Income
VIP Growth
VIP High Income
VIP Investment Grade Bond
VIP Overseas
----------------------------------------------------------------------------------------------------
INVESCO FUNDS
VIF Dynamics
----------------------------------------------------------------------------------------------------
MFS
Global Governments
New Discovery
Utilities
----------------------------------------------------------------------------------------------------
XXXXXX XXXXXXX
Emerging Markets Equity
Global Equity
International Magnum
U.S. Real Estate
----------------------------------------------------------------------------------------------------
SALOMON BROTHERS
Variable Capital
----------------------------------------------------------------------------------------------------
SUMMIT PINACLE SERIES
Nasdaq-100 Index
Xxxxxxx 2000 Small Cap Index
S & P Mid Cap 400 Index
----------------------------------------------------------------------------------------------------
THIRD AVENUE
Third Avenue Value
----------------------------------------------------------------------------------------------------
Ameritas Agreement No, 2001-36, Effective January 1, 2001
Amendment No. 3
CORPORATE SOLUTIONS
Xxxxx Comely, FLMI
Assistant Vice President
Reinsurance Solutions -- Treaty Services
Phone (000) 000-0000
Fax (000) 000-0000
xxxxx.xxxxxxx axa-corporatesolutions.cotn
LIFE, HEALTH & ANNUITY REINSURANCE
July 12, 2002
VIA FEDERAL EXPRESS 0000 0000 0000
Xx. Xxxxxx X. XxXxxxx
Assistant Vice President and Associate Actuary
Ameritas Variable Life Insurance Company
0000 0 Xxxxxx
Xxxxxxx, Xxxxxxxx 00000
Dear Xx. XxXxxxx,
This letter concerns the Variable Annuity GMDB new business facility that has
been open to Ameritas Variable Life Insurance Company for minimum of two years
under Reinsurance Agreement N6.1001-36 dated January 1, 2001.
We find that. AXA Corporate Solutions will not be able to offer a renewal of
this new business faculty. Therefore, in accordance with the termination
provisions set forth under Article XX, Duration of Agreement, AXA Corporate
Solutions hereby provides you with 180 days prior written notification of our
intent to terminate Agreement No. 2001-36 for new business as of December 31,
2002.
AXA Corporate Solutions has valued Ameritas Variable Life as our business
partner, and we regret that we will no longer be able to provide you with this
reinsurance facility. Please call our underwriter, Xxxxxxx Xxxxxxxx, if you have
any questions.
This letter is sent in duplicate original for acknowledgement of receipt and
countersignature. Kindly secure signatures on behalf of Ameritas Variable Life,
retain one original for filing in your copy of the Agreement, and return one
original to AXA for filing.
Thank you.
Signed for AXA Corporate Solutions Life Reinsurance Company:
Xxxxxxx X. Xxxx, President and CUO Xxxxx Xxxxxxx, Assistant Vice President
Signed for AMERITAS VARIABLE LIFE INSURANCE COMPANY
Xxxxxxx X. Xxxxxxx V P Xxxxxx X. Xxxxx V P
AXA Corporate Solutions Life Reinsurance Company
00 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000-0000
Telephone: (000) 000-0000 Fax: (000) 000-0000
Amendment No. 4 to
Automatic Reinsurance Agreement No. 2001-36, Dated January 1, 2001
between
AMERITAS VARIABLE LIFE INSURANCE COMPANY
(CEDING COMPANY)
and
AXA CORPORATE SOLUTIONS LIFE REINSURANCE COMPANY
(REINSURER)
Effective as noted below, this Amendment is hereby attached to and becomes a
part of the above-described Reinsurance Agreement. It is mutually agreed that:
o Schedule B, Investment Funds, is replaced by the attached revised Schedule B,
to document fund revisions as of the dates shown.
This Amendment does not alter, amend or modify the Reinsurance Agreement other
than as set forth in this Amendment, and it is subject otherwise to all the
terms and conditions of the Reinsurance Agreement together with all Amendments
and supplements thereto.
AMERITAS VARIABLE LIFE INSURANCE COMPANY
By: Xxxxx X. Xxxxxxx V P Date: 5-2003
Attest: Xxxxxxx X. Xxxxxxx V P
AXA Corporate Solutions Life Reinsurance Company
By: Xxxxxxx X. Xxxxxxxx, Senior Vice President Date: 12 May 2003
By: Xxxxx Xxxxx, Vice President
Attest: Xxxxx Xxxxxxx, Assistant Vice President
Schedule B
Investment Funds
-------------------------------------------------------------------------------------------------------
Funds Status Changes
-------------------------------------------------------------------------------------------------------
XXXXX
American Balanced
American Leveraged AllCap
-------------------------------------------------------------------------------------------------------
AMERICAN CENTURY
VP Income & Growth
-------------------------------------------------------------------------------------------------------
AMERITAS PORTFOLIOS
Growth (Xxxx Xxxxx) Subadvisor replaced November 1, 2001
Income & Growth (Xxxx Xxxxx) Added November 1, 2002
MidCap Growth (Xxxx Xxxxx)
Small Capitalization (XxXxxx -- formerly Xxxx
Xxxxx)
Micro Cap (Babson)
Money Market (Xxxxxxx)
Emerging Growth (MFS Co.)
Growth with Income (MFS Co.)
Research (MFS Co.)
Select (Oakmark)
Index 000 (Xxxxx Xxxxxx)
Xxxxxxx MidCap Stock
-------------------------------------------------------------------------------------------------------
XXXXXXX SOCIAL
Social Balanced
Social International Equity
Social Mid Cap Growth
Social Small Cap Growth
-------------------------------------------------------------------------------------------------------
FIDELITY -- SERVICE CLASS 2
VIP Asset Manager
VIP Asset Manager: Growth
VIP Contrafund
VIP Equity-Income
VIP Growth
VIP High Income
VIP Investment Grade Bond
VIP Overseas
-------------------------------------------------------------------------------------------------------
INVESCO FUNDS
VIF Dynamics
-------------------------------------------------------------------------------------------------------
MFS
Global Governments
New Discovery
Utilities
-------------------------------------------------------------------------------------------------------
XXX XXXXXX (FORMERLY XXXXXX XXXXXXX) Xxx Xxxxxx now represents Xxxxxx Xxxxxxx
for Emerging Markets Equity -- Class I formerly institutional investors, as of 5/1/02.
Emerging Markets Equity Name changed 5/1/03
Global Value Equity -- Class I formerly Global Name changed 5/1/03
Equity Name changed 5/1 /03
International Magnum - Class I formerly Name changed 5/1/03
International Magnum
U.S. Real Estate -- Class I formerly U.S. Real Estate
-------------------------------------------------------------------------------------------------------
SALOMON BROTHERS Name changed 5/1/03
Variable All Cap, formerly Variable Capital
------------------------------------------------------------------------------------------------------
SUMMIT PINACLE SERIES
Nasdaq-100 Index
Xxxxxxx 2000 Small Cap Index
S & P Mid Cap 400 Index
------------------------------------------------------------------------------------------------------
THIRD AVENUE
Third Avenue Value
------------------------------------------------------------------------------------------------------
Ameritas Agreement No. 2001-36, Effective January 1,
2001 Amendment Xx. 0
Xxxxxxxxx Xx. 0 to
Automatic Reinsurance Agreement No. 2001-36, Dated January 1, 2001
between
AMERITAS VARIABLE LIFE INSURANCE COMPANY
(CEDING COMPANY)
and
AXA CORPORATE SOLUTIONS LIFE REINSURANCE COMPANY
(REINSURER)
Effective as noted below, this Amendment is hereby attached to and becomes a
part of the above-described Reinsurance Agreement. It is mutually agreed that: |
Schedule B, Investment Funds, is replaced by the attached revised Schedule B, to
document fund revisions as of the dates shown.
This Amendment does not alter, amend or modify the Reinsurance Agreement other
than as set forth in this Amendment, and it is subject otherwise to all the
terms and conditions of the Reinsurance Agreement together with all Amendments
and supplements thereto.
AMERITAS VARIABLE LIFE INSURANCE COMPANY
By: Xxxxxxx X. Xxxxxxx V P Date: 11-19-03
Attest: Xxxxx X. Xxxxxxx V P
AXA Corporate Solutions Life Reinsurance Company
By: Xxxxxxx X. Xxxxxxxx, Senior Vice President Date: 12 May 2003
By: Xxxxx X. Xxxxxx, Assistant Vice President
Attest: Xxxxx Xxxxxxx, Assistant Vice President
Schedule B
Investment Funds
--------------------------------------------------------------------------------
Funds and Status Changes
--------------------------------------------------------------------------------
XXXXX
American Balanced
American Leveraged AllCap
--------------------------------------------------------------------------------
AMERICAN CENTURY
VP Income & Growth
--------------------------------------------------------------------------------
AMERITAS PORTFOLIOS
Growth (Xxxx Xxxxx) Xxxx Xxxxx) (subadvisor replaced 11/1/07)
Income & Growth (Xxxx Xxxxx) 00/0/00/
XxxXxx Xxxxxx (Xxxx Xxxxx)
Small Capitalization (XxXxxx - formerly
Micro Cap (Babson)
Money Market (Xxxxxxx)
Select (Oakmark)
Index 000 (Xxxxx Xxxxxx)
Xxxxxxx MidCap Stock (added 71/7/02)
Core Strategies (Xxxxxxxxx) (added
--------------------------------------------------------------------------------
XXXXXXX SOCIAL
Social Balanced
Social International Equity
Social Mid Cap Growth
Social Small Cap Growth
--------------------------------------------------------------------------------
FIDELITY -- SERVICE CLASS 2
VIP Asset Manager
VIP Asset Manager: Growth
VIP Contrafund
VIP Equity-Income
VIP Growth
VIP High Income
VIP Investment Grade Bond
VIP Overseas
--------------------------------------------------------------------------------
INVESCO FUNDS
VIF Dynamics
--------------------------------------------------------------------------------
MFS
Global Governments
New Discovery
Utilities
--------------------------------------------------------------------------------
XXX XXXXXX (FORMERLY XXXXXX XXXXXXX) (Xxx Xxxxxx now represents Xxxxxx
Xxxxxxx for institutional investors,
as of 5/1/02.)
Emerging Markets Equity - Class I formerly Emerging Markets Equity (name
changed 5/1/03)
Global Value Equity - Class I formerly Global Equity (name changed 5/1/03)
International Magnum - Class I formerly International Magnum (name changed
5/1/03)
U.S. Real Estate - Class I formerly U.S. Real Estate (name changed 5/1/31
--------------------------------------------------------------------------------
SALOMON BROTHERS Capital; name changed 5/1/03)
Variable All Cap (former/y Variable
--------------------------------------------------------------------------------
SUMMIT PINACLE SERIES
Nasdaq-100 Index
Xxxxxxx 2000 Small Cap Index
S & P Mid Cap 400 Index
--------------------------------------------------------------------------------
THIRD AVENUE
--------------------------------------------------------------------------------
THIRD AVENUE VALUE
--------------------------------------------------------------------------------
Closed or Merged Funds No Longer Offered
Ameritas Portfolios
Emerging Growth (MFS Co.) (merged into Core Strategies 11/1/03)
Growth With Income (MFS Co.) (merged into Core Strategies 11/1/03)
Research (MFS Co.) (merged into Core Strategies 11/1/03)
ASSUMPTION AGREEMENT
between
AMERITAS VARIABLE LIFE INSURANCE COMPANY
and
AXA CORPORATE SOLUTIONS LIFE REINSURANCE COMPANY
AMERITAS VARIABLE LIFE INSURANCE COMPANY hereby gives notice that effective the
1st day of May, 2003, it assumes the interests and obligations of ACACIA
NATIONAL LIFE INSURANCE COMPANY in the reinsurance agreement known as Agreement
No. 2001-43, dated May 1, 2001, between ACACIA NATIONAL LIFE INSURANCE COMPANY
and AXA CORPORATE SOLUTIONS LIFE REINSURANCE COMPANY (the "Reinsurance
Agreement").
AXA CORPORATE SOLUTIONS LIFE REINSURANCE COMPANY acknowledges such assumption
and agrees that all transactions with respect to reinsurance heretofore ceded
under the aforesaid Agreement shall hereafter be between AMERITAS VARIABLE LIFE
INSURANCE COMPANY (now the CEDING COMPANY) and AXA CORPORATE SOLUTIONS LIFE
REINSURANCE COMPANY.
This Assumption Agreement does not alter, amend or modify the Reinsurance
Agreement other than as set forth herein, and it is subject otherwise to all the
terms and conditions of the Reinsurance Agreement together with all Amendments
and supplements thereto.
AMERITAS VARIABLE INSURANCE COMPANY
By: Xxxxxxx X. Xxxxxxx V P Date: 12/23/03
Attest: Xxxxx X. Xxxxxxx V P
AXA CORPORATE SOLUTIONS LIFE REINSURANCE COMPANY
By: Xxxxxxx X. Sokoulas, Senior Vice President Date: 19 December 2003
By: Xxxxx X. Xxxxxx, Assistant Vice President
Attest: Xxxxx Xxxxxxx, Assistant Vice President
AXA
Xxxxxxxxx Pagnoui, FLMI
Vice President, Reinsurance Services
Phone (000) 000-0000
Fax (000) 000-0000
e-mail xxxxxxxxx.xxxxxxxx@xxx-xxxxxxxxxxxxxxxxxx.xxx
CORPORATE SOLUTIONS
LIFE, HEALTH & ANNUITY REINSURANCE May 8, 2002
Xx. Xxxxxx X. XxXxxxx
Assistant Vice President & Associate Actuary
Acacia National Life Insurance Company
P. O. Box 82579
Lincoln, NB 68501-2579
Dear Xxx:
This letter refers to the reinsurance business we assume from your company
that is accounted for on a bulk or bordereau basis. During the year, you
provide us with the amount of such reinsurance business in-force, and the
corresponding seriatim data. We, in turn, must use the data furnished to us
to calculate reserves for our annual statement.
Because of the practical difficulties in obtaining independent verification
of these amounts of reinsurance in-force, we are asking the companies from
whom we assume business on a bulk or bordereau basis to have an officer or
actuary complete and sign the below statement.
Please return one signed copy of this letter to my attention at your
earliest convenience.
Sincerely,
Xxxxxxxxx Pagnoui
JP:jh
--------------------------------------------------------------------------------
Statement With Respect To Reinsurance In-Force Amounts As of December 31, 2001
(To be completed by an Officer or Actuary)
I affirm that the lists and/or summaries of reinsured policies in-force as of
December 31, 2001, prepared for and submitted to AXA Corporate Solutions Life
Reinsurance Company were prepared under my direction and, to the best of my
knowledge and belief, all the values provided on our seriatim data are accurate
and complete.
Xxxxxx X. Xxxxx Xxxxxx X. Xxxxx AVP Associate Actuary
Signature Name & Title (printed/typed)
Ameritas, Acacia, First Ameritas May 21, 2002
Company Name Date
AXA Corporate Solutions Life Reinsurance Company
00 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000-0000
Telephone: (000) 000-0000 Fax: (000) 000-0000
Compliance Tel: (000) 000-0000 Fax: (212) 000-0 000
Novation to Reinsurance Agreement
WHEREAS, Ameritas Variable Life Insurance Company ("AVLIC") and AXA Corporate
Solutions Life Reinsurance Company ("Reinsures"), are parties to a reinsurance
agreement ("Reinsurance Agreement"), whereby Reinsurer reinsures AVLIC in
accordance with the terms of the Reinsurance Agreement, which is identified on
Exhibit "A", attached hereto and incorporated herein; and
WHEREAS, AVLIC is merging into its parent, Ameritas Life Insurance Corp.
("Ameritas") with Ameritas as the surviving company and with the closing of the
merger (the "Merger") scheduled to occur after the close of business on April
30, 2007;
It is therefore agreed:
1. Substitution of Party -- The Reinsurance Agreement is amended to
provide for Ameritas to act as the reinsured party in substitution of
AVLIC.
2. Performance of Duties, Assumption of Rights -- Ameritas hereby assumes
and agrees to perform the duties previously performed by AVLIC under
the Reinsurance Agreement and hereby assumes the rights previously
held by AVLIC under the Reinsurance Agreement. AXA Corporate Solutions
Life Reinsurance Company hereby accepts Ameritas' agreement and
assumption of such duties and rights and accepts the substitution of
Ameritas for AVLIC under the Reinsurance Agreement.
3. Effective Date -- This Novation shall take effect as of the actual
closing date of the Merger, and such effectiveness is conditioned upon
the closing of the Merger. Ameritas will notify the other parties
hereto of any change in the scheduled closing date and of the actual
closing date.
In witness whereof the parties have signed this instrument.
Executed this 9th day of April, 2007.
Ameritas Variable Life Insurance Company
By: Xxxxx X. Xxxxxxx
Print: Xxxxx X. Xxxxxxx
Title: Asst. Vice President Individual Policy Processing
Date: 4/9/07
Ameritas Life Insurance Corp.
By: Xxxxxx X. Xxxxx
Print: Xxxxxx X. Xxxxx
Title: Vice President and Asst. Sec.
Date: April 9, 2007
AXA Corporate Solutions Life Reinsurance Company
By: Xxxxx Xxxxx
Print: Xxxxx Xxxxx
Title: Sr Vice President & Actuary
Date: April 24, 2007
EXHIBIT A
---------------------------------------------------------
Cedant Reinsurance Effective Date
Reinsurer Agreement Number
-----------------------------------------------------------------------------------------------------------
Ameritas Variable Life AXA Corporate Solutions 2001-36 January 1, 2001
Insurance Company Life Reinsurance Company
