Amendment No. 3 to the GMIB Reinsurance Agreement between MLLICNY and ACE Tempest Life Reinsurance LTD.
Exhibit 7(b)(1)
Amendment No. 3
to the
GMIB Reinsurance Agreement between MLLICNY
and
ACE Tempest Life Reinsurance LTD.
to the
GMIB Reinsurance Agreement between MLLICNY
and
ACE Tempest Life Reinsurance LTD.
AMENDMENT NO. 3
to the
VARIABLE ANNUITY GMIB REINSURANCE AGREEMENT,
effective June 16, 2003,
effective June 16, 2003,
between
ML LIFE INSURANCE COMPANY OF NEW YORK
(the “CEDING COMPANY”)
(the “CEDING COMPANY”)
and
ACE TEMPEST LIFE REINSURANCE LTD.
(the “REINSURER”)
(the “REINSURER”)
Effective August 1, 2008, this Amendment is hereby attached to and becomes a part of the
above-described Reinsurance Treaty. It is mutually agreed that the Agreement will be updated to
properly reflect fund changes and endorsements. In addition, it is mutually agreed that the
Agreement will be amended to clarify the reinsurer approval process for retail fee increases and
the addition of new riders with asset charges. To effect these changes, the following provisions of
the Agreement are hereby amended:
| • | Schedule B-1, Contracts Subject to this Reinsurance Agreement is hereby replaced by the attached Schedule B-1 | ||
| • | Schedule B-2, Subaccounts Subject to this Reinsurance Agreement is hereby replaced by the attached Schedule B-2 | ||
| • | Schedule C-1, Limits and Rules of the CEDING COMPANY is hereby replaced by the attached Schedule C-1 | ||
| • | Article III, Effective Date, Term, and Terminations is hereby replaced by the attached Article III. | ||
| • | Article XVII — Notices is hereby replaced by the attached Article XVII |
This amendment is effective only if fully executed on or before September 30, 2008.
| ML Life Insurance Company of New York | ACE Tempest Life Reinsurance Ltd. | |||||||||||
| By | /s/ Xxxxxx X. Rlieg | By | /s/ Xxxx Xxxxx | |||||||||
| Name | Xxxxxxx X. Rlieg | Name | Xxxx Xxxxx | |||||||||
| Title | Vice President | Title | SVP & Chief Pricing Officer | |||||||||
| Date | July 11, 2008 | Date | 7/7/08 | |||||||||
MLLICNY and ACE Tempest Re GMIB
SCHEDULE B-1
Contracts Subject to this Reinsurance Agreement
| Form | ||
| Number * | Policy Description | |
MLNY-VA-001 NY 1
|
Retirement Plus | |
MLNY-VA-006
|
XXX Annuity | |
MLNY-076
|
GMIB Rider for XXX Annuity | |
MLNY-077
|
GMIB Rider for Retirement Plus | |
MLNY-076-4
|
Annuity Payout Rates for GMIB Rider: XXX Annuity | |
MLNY-077-4
|
Annuity Payout Rates for GMIB Rider: Ret Plus |
| * | Includes any state specific variation of the above-described forms as of the EFFECTIVE DATE and any subsequent state specific variation, if such subsequent state specific variation does not have any impact on the risk assumed by the REINSURER. The CEDING COMPANY shall notify the REINSURER of any state specific variation after the EFFECTIVE DATE which could have any impact on the risk assumed by the REINSURER and such variation shall be treated the same as a policy form change under Article IV, Section B, provided that the REINSURER shall not unreasonably refuse to approve such subsequent state specific variation. |
MLLICNY and ACE Tempest Re GMIB
SCHEDULE B-2
Subaccounts Subject to this Reinsurance Agreement
Retirement Plus |
BlackRock Variable Series Funds, Inc. |
BlackRock Balanced Capital V.I. Fund ** |
BlackRock Basic Value V.I. Fund |
BlackRock Total Return V.I. Fund |
BlackRock Money Market V.I. Fund * |
BlackRock Fundamental Growth V.I. Fund |
BlackRock Global Allocation V.I. Fund |
BlackRock Global Growth V.I. Fund |
BlackRock Government Income V.I. Fund |
BlackRock High Income V.I. Fund |
BlackRock S&P 500 Index V.I. Fund |
BlackRock International Value V.I. Fund |
BlackRock Large Cap Core V.I. Fund |
BlackRock Large Cap Growth V.I. Fund |
BlackRock Large Cap Value V.I. Fund |
BlackRock Value Opportunities V.I. Fund |
BlackRock Utilities and Telecommunications V.I. Fund ** |
MLIG Variable Insurance Trust |
Xxxxxx/Lord Xxxxxx Mid Cap Value Portfolio |
Xxxxxx/Xxxxxxxx Mid Cap Growth Portfolio |
Xxxxxx/Allianz NFJ Small Cap Value Portfolio |
Xxxxxx/XX Xxxxxx Small Cap Growth Portfolio |
Xxxxxx/Delaware Trend Portfolio |
Xxxxxx/Lord Xxxxxx Affiliated Portfolio |
Xxxxxx/Allianz CCM Capital Appreciation Portfolio |
AIM Variable Insurance Funds |
AIM X.X.Xxxxxxx Appreciation Fund |
AIM V.I.Core Equity Fund |
AllianceBernstein Variable Products Series Fund,Inc. |
AllianceBernstein Large Cap Growth Portfolio |
AllianceBernstein Global Technology Portfolio |
American Century Variable Portfolios, Inc. |
VP International Fund |
VP Ultra Fund |
Xxxxx Variable Account Fund, Inc. |
Xxxxx Value Portfolio |
Federated Insurance Series |
Federated Capital Appreciation Fund II |
Federated Xxxxxxxx Fund II |
MFS Variable Insurance Trust |
MFS Emerging Growth Series |
PIMCO Variable Insurance Trust |
Total Return Portfolio |
Xxx Xxxxxx Life Investment Trust |
Xxxxxxxx Portfolio |
| * | Available both through Account A and Account B | |
| ** | Closed to allocations of new premium payments and incoming transfers |
MLLICNY and ACE Tempest Re GMIB
SCHEDULE B-2 (Continued)
Subaccounts Subject to this Reinsurance Agreement
XXX Annuity
BlackRock Funds |
Basic Value Fund |
Total Return Fund |
Fundamental Growth Fund |
Global Allocation Fund |
S&P 500 Index Fund |
Government Income Fund |
Value Opportunities Fund |
AIM Funds |
AIM Constellation Fund |
AIM Charter Fund |
AllianceBernstein |
AllianceBernstein Growth and Income Fund |
AllianceBernstein Large Cap Growth Fund |
Allianz Funds |
OCC Renaissance Fund |
NFJ Small Cap Value Fund |
American Funds |
Bond Fund of America |
Growth Fund of America |
Income Fund of America |
Investment Company of America |
American Century |
Equity Income Fund |
Davis Funds |
Xxxxx New York Venture Fund |
Delaware Investments |
Delaware Trend Fund |
Fidelity Investments |
Fidelity Advisor Overseas Fund |
Fidelity Advisor Equity Growth Fund |
Lord Xxxxxx |
Bond-Debenture Fund |
Mid-Cap Value Fund |
MFS Investment Management |
MFS Core Growth Fund |
MFS Research International Fund |
MFS Mid Cap Growth Fund |
Oppenheimer Funds |
Global Fund |
Main Street Fund |
Quest Opportunity Value Fund |
PIMCO Funds |
Total Return Fund |
Xxxxxx Investments |
Fund for Growth and Income |
International Equity Fund |
Voyager Fund |
Xxxxxxxx Value Fund Series |
Smaller-Cap Value Fund |
Franklin Xxxxxxxxx Investments |
Xxxxxxxxx Foreign Fund |
Xxxxxxxxx Growth Fund |
Xxx Xxxxxx Investments |
Aggressive Growth Fund |
Xxxxxxxx Fund |
Equity and Income Fund |
Xxxxxxx Xxxxx Investment Managers |
Ready Assets Trust |
MLLICNY and ACE Tempest Re GMIB
SCHEDULE C-l
Limits and Rules of the CEDING COMPANY
| 1) | CEDING COMPANY will determine the ADJUSTED GMIB CLAIM for each qualified annuitization within seven (7) working days of GMIB EXERCISE. | |
| 2) | CEDING COMPANY reserves the right to limit cumulative RETAIL ANNUITY PREMIUMS in excess of $1,000,000. | |
| 3) | The minimum annuity purchase is $5,000 for non-qualified contracts and $2,000 for qualified contracts for Retirement Plus and $25,000 for XXX Annuity. | |
| 4) | Valid issue ages for GMIB are 0 to 75, age last birthday. | |
| 5) | Partial withdrawals of the ANNUITY CONTRACT’S REINSURED ACCOUNT VALUE will reduce the REINSURED GMIB BENEFIT BASE in the same proportion as the ratio of the REINSURED ACCOUNT VALUE immediately after the withdrawal to the REINSURED ACCOUNT VALUE immediately before the withdrawal, except as noted in the following. If the cumulative partial withdrawals in a year do not exceed the rollup percentage times the beginning of the year Rollup Benefit Base, then the partial withdrawals will reduce the Rollup Benefit Base dollar-for-dollar. |
MLLICNY and ACE Tempest Re GMIB
ARTICLE III — EFFECTIVE DATE, TERM AND TERMINATION
| A. | This Agreement covers individual ANNUITY CONTRACTS issued by the CEDING COMPANY that: |
| (i) | are identified by form in Schedule X-x; | ||
| (ii) | have elected no optional benefit rider forms for which a retail fee is assessed other than those forms listed on Schedule X-x; | ||
| (ii) | have accounts invested in the investment funds listed in Schedule B-2; | ||
| (iii) | are issued within the limits and rales described in Schedule C-l; | ||
| (iv) | are in compliance with all of the other terms and provisions of this Agreement; | ||
| (v) | have elected the Guaranteed Minimum Income Benefit, as described in Schedule A, on or after the EFFECTIVE DATE and prior to the date this Agreement ceases to cover new ANNUITY CONTRACTS; and | ||
| (vi) | are ACTIVE CONTRACTS. |
| B. | This Agreement will cease to cover new ANNUITY CONTRACTS issued by the CEDING COMPANY on the earlier of (i) October 31, 2005 or (ii) the date that the sum of all cumulative RETAIL ANNUITY PREMIUMS exceeds the limit provided in Schedule C-2, paragraph 3. | |
| C. | This Agreement will terminate with respect to each ANNUITY CONTRACT subject to it, as of the TERMINATION DATE. | |
| D. | The CEDING COMPANY shall have the option of terminating this Agreement for new
business, existing business, or both, by giving ninety (90) days advance notice to the REINSURER, after the occurrence of any of the following: |
| 1. | REINSURER’S Standard and Poor’s Rating is reduced to a “BBB” or lower. REINSURER must report any adverse change in Standard and Poor’s Rating to CEDING COMPANY within fifteen (15) days of the change. Any notice of termination given by the CEDING COMPANY enabled by such rating reduction shall be deemed withdrawn if REINSURER’S Standard and Poor’s Rating is restored to a level higher than “BBB” during the 90 day notice period; | ||
| 2. | An order is entered appointing a receiver, conservator or trustee for
management
of REINSURER or a proceeding is commenced for rehabilitation, liquidation, supervision or conservation of REINSURER; |
||
| 3. | REINSURER’S U.S. GAAP surplus position is reduced to 70% or less of its U.S. GAAP surplus position as of December 31, 2001. The REINSURER must report such a reduction within fifteen (15) days after it occurs. The |
MLLICNY and ACE Tempest Re GMIB
| REINSURER’S surplus position as of December 31, 2001 is provided in Schedule H. Any notice of termination given by the CEDING COMPANY enabled by such surplus reduction shall be deemed withdrawn if REINSURER’S U.S. GAAP surplus position is restored to a level higher than 70% of its U.S. GAAP surplus position as of December 31, 2001 during the 90 day notice period. |
| E. | The REINSURER shall have the option of terminating this Agreement for new business, existing business or both by giving ninety (90) days advance written notice to the CEDING COMPANY after the occurrence of any of the following: |
| 1. | The CEDING COMPANY fails to provide timely submissions of all material data required to be provided in accordance with Schedule G, provided that the REINSURER’S notice of termination identifies whether new contracts, existing contracts or both will be terminated and provided further that the REINSURER’S notice of termination shall be deemed withdrawn if the CEDING COMPANY, within 90 days after the date the REINSURER’S notice of termination is given, provides to the REINSURER all data submissions then in arrears. | ||
| 2. | The CEDING COMPANY fails to pay premium due on or before the REMITTANCE DATE. In the event that premium due is not paid by the REMITTANCE DATE, the REINSURER shall have the right to terminate this agreement by giving ninety (90) days advance notice of termination to the CEDING COMPANY. If all premiums in default and interest in accordance with Article III, paragraph F are received by the REINSURER within the ninety (90) day notice period, the Agreement will remain in effect and the notice of termination deemed withdrawn. If premium remains in default as of the close of the last day of the ninety (90) day notice period, the REINSURER’S liability for all risks reinsured associated with the defaulted premiums under this Agreement will terminate. |
| F. | Except as otherwise provided herein, upon termination of this Agreement for existing business, the REINSURER shall have no reinsurance liability with respect to any ANNUITY CONTRACT. Notwithstanding termination of reinsurance as provided herein, the REINSURER shall continue to be liable to the CEDING COMPANY for all unpaid ADJUSTED GMIB CLAIMS arising as a result of a GMIB EXERCISE of an ACTIVE CONTRACT made prior to the date this Agreement is terminated, and the CEDING COMPANY shall continue to be liable to the REINSURER for all unpaid MONTHLY REINSURANCE PREMIUMS earned by the REINSURER, under this Agreement until the date the Agreement is terminated. Any net amounts due from either party after termination are subject to a daily interest charge equal to 1/365 times the sum of (a) and (b), where (a) is the 3 month LIBOR rate on the preceding MONTHLY VALUATION DATE as published in the Wall Street Journal; and (b) is 1.00%. Interest is assessed from the REMITTANCE DATE until the date paid. |
MLLICNY and ACE Tempest Re GMIB
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, sent via facsimile with evidence of successful transmission, or dispatched by certified or registered mail, return receipt requested, postage prepaid, addressed to the parties as follows: |
Xxxxx Xxxxx
Transamerica Capital Management
0000 Xxxxxxxx Xxxx XX
Xxxxx Xxxxxx, XX 00000
Fax: (000) 000-0000
Transamerica Capital Management
0000 Xxxxxxxx Xxxx XX
Xxxxx Xxxxxx, XX 00000
Fax: (000) 000-0000
With a copy to:
Transamerica Capital Management
0000 Xxxxxxxx Xxxx XX
Xxxxx Xxxxxx, XX 00000
Attn: TCM Legal Department
Fax: (000) 000-0000
Transamerica Capital Management
0000 Xxxxxxxx Xxxx XX
Xxxxx Xxxxxx, XX 00000
Attn: TCM Legal Department
Fax: (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
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 person and/or the address to which notices are to be sent by notifying the other party of such change of address in writing in accordance with the foregoing. |
MLLICNY and ACE Tempest Re GMIB
